104th CONGRESS 1st Session H. R. XX IN THE HOUSE OF REPRESENTATIVES Mr. Saxton (for himself and Mr. DeLay) introduced the following bill; which was referred to the Committee on XXXXXXXXXXXXXXX A BILL To create jobs, enhance wages, strengthen property rights, maintain certain economic liberties, decentralize and reduce the power of the Federal Government with respect to the States, localities, and citizens of the United States, and to increase the accountability of Federal officials. S6221 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 ``Job Creation and Wage Enhancement Act of 1995''. SEC. 2. TABLE OF CONTENTS. The table of contents for this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--CAPITAL GAINS REFORM Sec. 1001. 50 percent capital gains deduction. Sec. 1002. Indexing of certain assets for purposes of determining gain or loss. Sec. 1003. Capital loss deduction allowed with respect to sale or exchange of principal residence. TITLE II--NEUTRAL COST RECOVERY Sec. 2001. Depreciation adjustment for certain property placed in service in taxable years beginning after December 31, 1992. Sec. 2002. Repeal of special depreciation rules applicable under the adjusted current earnings provisions of the minimum tax. TITLE III--RISK ASSESSMENT AND COST/BENEFIT ANALYSIS FOR NEW REGULATIONS Subtitle A--Risk Communication Sec. 3101. Short title. Sec. 3102. Purposes. Sec. 3103. Effective date; applicability; savings provisions. Sec. 3104. Principles for risk assessment. Sec. 3105. Principles for risk characterization. Sec. 3106. Guidance, plan for assessing new information, and report. Sec. 3107. Definitions. Subtitle B--Requirement to Perform Risk Assessments and Cost/Benefit Analyses Sec. 3201. Requirement to prepare risk assessments and cost/benefit analyses. Subtitle C--Sound Science Sec. 3301. Establishment of independent peer review panels. Sec. 3302. Procedures for peer review. Sec. 3303. Requirement for new risk assessment or cost/benefit analysis. Subtitle D--Citizen Suits Sec. 3401. Civil action. TITLE IV--ESTABLISHMENT OF FEDERAL REGULATORY BUDGET COST CONTROL Sec. 4001. Amendments to the Congressional Budget Act of 1974. Sec. 4002. President's annual budget submissions. Sec. 4003. Estimation and disclosure of costs of Federal regulation. TITLE V--STRENGTHENING OF PAPERWORK REDUCTION ACT Sec. 5001. Short title. Subtitle A--Authorization of Appropriations Sec. 5101. Authorization of appropriations. Subtitle B--Reducing the Burden of Federal Paperwork on the Public Sec. 5201. Coverage of all federally sponsored paperwork burdens. Sec. 5202. Paperwork reduction goals. Subtitle C--Enhancing Government Responsibility and Accountability for Reducing the Burden of Federal Paperwork Sec. 5301. Reemphasizing the responsibility of the Director to control the burden of Federal paperwork. Sec. 5302. Enhancing agency responsibility to obtain public review of proposed paperwork burdens. Sec. 5303. Expediting review at the Office of Management and Budget. Sec. 5304. Improving public and agency scrutiny of paperwork burdens proposed for renewal. Sec. 5305. Protection for whistleblowers of unauthorized paperwork burden. Sec. 5306. Enhancing public participation. Sec. 5307. Expediting review of an agency information collection request with a reduced burden. Subtitle D--Enhancing Agency Responsibility for Sharing and Disseminating Public Information Sec. 5401. Prescribing governmentwide standards for sharing and disseminating public information. Sec. 5402. Agency responsibilities for sharing and disseminating public information. Sec. 5403. Agency information inventory/locator system. Subtitle E--Additional Government Information Management Responsibility Sec. 5501. Strengthening the statistical policy and coordination functions of the Director. Sec. 5502. Use of electronic information collection and dissemination techniques to reduce burden. Sec. 5503. Agency implementation. Sec. 5504. Automatic data processing equipment plan. Sec. 5505. Technical and conforming amendments. Subtitle F--Effective Dates Sec. 5601. Effective dates. TITLE VI--STRENGTHENING REGULATORY FLEXIBILITY Sec. 6001. Judicial review. Sec. 6002. Consideration of direct and indirect effects of rules. Sec. 6003. Rules opposed by SBA Chief Counsel for Advocacy. Sec. 6004. Sense of Congress regarding SBA Chief Counsel for Advocacy. TITLE VII--REGULATORY IMPACT ANALYSES Sec. 7001. Short title. Sec. 7002. Rule making notices for major rules. Sec. 7003. Hearing requirement for proposed rules; extension of comment period. Sec. 7004. Regulatory impact analysis. Sec. 7005. Additional responsibilities of Director of the Office of Management and Budget. Sec. 7006. Standard of clarity. Sec. 7007. Report by OIRA. Sec. 7008. Civil action. Sec. 7009. Definitions. TITLE VIII--PROTECTION AGAINST FEDERAL REGULATORY ABUSE Subtitle A--Citizens' Regulatory Bill of Rights Sec. 8101. Citizens' regulatory bill of rights. Subtitle B--Private Sector Whistleblowers' Protection Sec. 8201. Short title. Sec. 8202. Purpose. Sec. 8203. Coverage. Sec. 8204. Prohibited regulatory practices. Sec. 8205. Prohibited regulatory practice as a defense to agency action. Sec. 8206. Enforcement. Sec. 8207. Citizen suits. Sec. 8208. Office of the Special Counsel. TITLE IX--PRIVATE PROPERTY RIGHTS PROTECTIONS AND COMPENSATION Sec. 9001. Compensation for taking of private property. Sec. 9002. Definitions. TITLE X--FEDERAL MANDATE ACCOUNTABILITY AND REFORM Sec. 10001. Short title. Sec. 10002. Definitions. Sec. 10003. Exclusions. Subtitle A--Legislative Accountability and Reform Sec. 10101. Duties of congressional committees. Sec. 10102. Duties of the Director. Sec. 10103. Point of order. Sec. 10104. Enforcement in the House of Representatives. Sec. 10105. Exercise of rulemaking powers. Sec. 10106. Effective date. Subtitle B--Regulatory Accountability and Reform Sec. 10201. Regulatory process. Sec. 10202. Statements to accompany significant regulatory actions. Sec. 10203. Assistance to the Congressional Budget Office. Sec. 10204. Pilot program on small government flexibility. Subtitle C--Judicial Review Sec. 10301. Judicial review. Subtitle D--Baseline Study Sec. 10401. Baseline study of costs and benefits. Subtitle E--Limitation on Implementation of Federal Mandates; Review and Monitoring of Unfunded Federal Mandates and Implementation of Act Sec. 10501. Short title. Sec. 10502. Limitation on implementation of Federal mandates. Sec. 10503. Report on unfunded Federal mandates by Advisory Commission on Intergovernmental Relations. Sec. 10504. Monitoring implementation of Act. Sec. 10505. Special authorities of Advisory Commission. Sec. 10506. Definitions. Sec. 10507. Authorization of appropriations. TITLE XI--ESTABLISHMENT OF FEDERAL MANDATE BUDGET COST CONTROL Sec. 11001. Amendments to the Congressional Budget Act of 1974. Sec. 321. OMB˙09CBO reports. Sec. 11002. President's annual budget submissions. Sec. 11003. Estimation and disclosure of costs of Federal mandates. TITLE XII--TAXPAYER DEBT BUY-DOWN Sec. 12001. Designation of amounts for reduction of public debt. Sec. 12002. Public debt reduction trust fund. Sec. 12003. Taxpayer-generated sequestration of Federal spending to reduce the public debt. TITLE XIII--SMALL BUSINESS INCENTIVES Sec. 13001. Increase in unified estate and gift tax credits. Sec. 13002. Increase in expense treatment for small businesses. Sec. 13003. Clarification of definition of principal place of business. Sec. 13004. Treatment of storage of product samples. TITLE I--CAPITAL GAINS REFORM SEC. 1001. 50 PERCENT CAPITAL GAINS DEDUCTION. (a) General Rule.--Part I of subchapter P of chapter 1 of the Internal Revenue Code of 1986 (relating to treatment of capital gains) is amended to read as follows: ``PART I--TREATMENT OF CAPITAL GAINS ``Sec. 1201. Capital gains deduction. ``SEC. 1201. CAPITAL GAINS DEDUCTION. ``(a) General Rule.--If for any taxable year a taxpayer has a net capital gain, 50 percent of such gain shall be a deduction from gross income. ``(b) Estates and Trusts.--In the case of an estate or trust, the deduction shall be computed by excluding the portion (if any) of the gains for the taxable year from sales or exchanges of capital assets which, under sections 652 and 662 (relating to inclusions of amounts in gross income of beneficiaries of trusts), is includible by the income beneficiaries as gain derived from the sale or exchange of capital assets. ``(c) Coordination With Treatment of Capital Gain Under Limitation on Investment Interest.--For purposes of this section, the net capital gain for any taxable year shall be reduced (but not below zero) by the amount which the taxpayer takes into account as investment income under section 163(d)(4)(B)(iii). ``(d) Transitional Rule.-- ``(1) In general.--In the case of a taxable year which includes January 3, 1995, the amount taken into account as the net capital gain under subsection (a) shall not exceed the net capital gain determined by only taking into account gains and losses properly taken into account for the portion of the taxable year on or after January 3, 1995. ``(2) Special rules for pass-thru entities.-- ``(A) In general.--In applying paragraph (1) with respect to any pass- thru entity, the determination of when gains and losses are properly taken into account shall be made at the entity level. ``(B) Pass-thru entity defined.--For purposes of subparagraph (A), the term `pass-thru entity' means-- ``(i) a regulated investment company, ``(ii) a real estate investment trust, ``(iii) an S corporation, ``(iv) a partnership, ``(v) an estate or trust, and ``(vi) a common trust fund.'' (b) Deduction Allowable in Computing Adjusted Gross Income.-- Subsection (a) of section 62 of such Code is amended by inserting after paragraph (15) the following new paragraph: ``(16) Long-term capital gains.--The deduction allowed by section 1201.'' (c) Technical and Conforming Changes.-- (1) Section 13113 of the Revenue Reconciliation Act of 1993 (relating to 50-percent exclusion for gain from certain small business stock), and the amendments made by such section, are hereby repealed; and the Internal Revenue Code of 1986 shall be applied as if such section (and amendments) had never been enacted. (2) Section 1 of such Code is amended by striking subsection (h). (3) Paragraph (1) of section 170(e) of such Code is amended by striking ``the amount of gain'' in the material following subparagraph (B)(ii) and inserting ``50 percent of the amount of gain''. (4)(A) Paragraph (2) of section 172(d) of such Code is amended to read as follows: ``(2) Capital gains and losses.-- ``(A) Losses of taxpayers other than corporations.--In the case of a taxpayer other than a corporation, the amount deductible on account of losses from sales or exchanges of capital assets shall not exceed the amount includible on account of gains from sales or exchanges of capital assets. ``(B) Deduction under section 1201.--The deduction under section 1201 shall not be allowed.'' (B) Subparagraph (B) of section 172(d)(4) of such Code is amended by striking ``paragraphs (1) and (3)'' and inserting ``paragraphs (1), (2)(B), and (3)''. (5) Paragraph (4) of section 642(c) of such Code is amended to read as follows: ``(4) Adjustments.--To the extent that the amount otherwise allowable as a deduction under this subsection consists of gain from the sale or exchange of capital assets held for more than 1 year, proper adjustment shall be made for any deduction allowable to the estate or trust under section 1201 (relating to deduction for excess of capital gains over capital losses). In the case of a trust, the deduction allowed by this subsection shall be subject to section 681 (relating to unrelated business income).'' (6) Paragraph (3) of section 643(a) of such Code is amended by adding at the end thereof the following new sentence: ``The deduction under section 1201 (relating to deduction of excess of capital gains over capital losses) shall not be taken into account.'' (7) Paragraph (4) of section 691(c) of such Code is amended by striking ``sections 1(h), 1201, and 1211'' and inserting ``sections 1201 and 1211''. (8) The second sentence of section 871(a)(2) of such Code is amended by inserting ``such gains and losses shall be determined without regard to section 1201 (relating to deduction for capital gains) and'' after ``except that''. (9) Subsection (d) of section 1044 of such Code is amended by striking the last sentence. (10)(A) Paragraph (2) of section 1211(b) of such Code is amended to read as follows: ``(2) the sum of-- ``(A) the excess of the net short-term capital loss over the net long- term capital gain, and ``(B) one-half of the excess of the net long-term capital loss over the net short-term capital gain.'' (B) So much of paragraph (2) of section 1212(b) of such Code as precedes subparagraph (B) thereof is amended to read as follows: ``(2) Special rules.-- ``(A) Adjustments.-- ``(i) For purposes of determining the excess referred to in paragraph (1)(A), there shall be treated as short-term capital gain in the taxable year an amount equal to the lesser of-- ``(I) the amount allowed for the taxable year under paragraph (1) or (2) of section 1211(b), or ``(II) the adjusted taxable income for such taxable year. ``(ii) For purposes of determining the excess referred to in paragraph (1)(B), there shall be treated as short-term capital gain in the taxable year an amount equal to the sum of-- ``(I) the amount allowed for the taxable year under paragraph (1) or (2) of section 1211(b) or the adjusted taxable income for such taxable year, whichever is the least, plus ``(II) the excess of the amount described in subclause (I) over the net short-term capital loss (determined without regard to this subsection) for such year.'' (11) Paragraph (1) of section 1402(i) of such Code is amended by inserting ``, and the deduction provided by section 1201 shall not apply'' before the period at the end thereof. (12) Section 12 of such Code is amended by striking paragraph (4) and redesignating the following paragraphs accordingly. (13) Paragraph (2) of section 527(b) of such Code is hereby repealed. (14) Subparagraph (D) of section 593(b)(2) of such Code is amended by adding ``and'' at the end of clause (iii), by striking ``, and'' at the end of clause (iv) and inserting a period, and by striking clause (v). (15) Paragraph (2) of section 801(a) of such Code is hereby repealed. (16) Subsection (c) of section 831 of such Code is amended by striking paragraph (1) and redesignating the following paragraphs accordingly. (17)(A) Subparagraph (A) of section 852(b)(3) of such Code is amended by striking ``, determined as provided in section 1201(a), on'' and inserting ``of 17.5 percent of''. (B) Clause (iii) of section 852(b)(3)(D) of such Code is amended-- (i) by striking ``65 percent'' and inserting ``82.5 percent'', and (ii) by striking ``section 1201(a)'' and inserting ``subparagraph (A)''. (18) Clause (ii) of section 857(b)(3)(A) of such Code is amended by striking ``determined at the rate provided in section 1201(a) on'' and inserting ``of 17.5 percent of''. (19) Paragraph (1) of section 882(a) of such Code is amended by striking ``section 11, 55, or 1201(a)'' and inserting ``section 11 or 55''. (20) Subsection (b) of section 904 of such Code is amended by striking paragraphs (2)(B), (3)(B), (3)(D), and (3)(E). (21) Subsection (b) of section 1374 of such Code is amended by striking paragraph (4). (22) Subsection (b) of section 1381 is amended by striking ``or 1201''. (23) Paragraph (1) of section 1445(e) of such Code is amended by striking ``35 percent (or, to the extent provided in regulations, 28 percent)'' and inserting ``17.5 percent (or, to the extent provided in regulations, 19.8 percent)''. (24) Clause (i) of section 6425(c)(1)(A) of such Code is amended by striking ``or 1201(a)''. (25) Clause (i) of section 6655(g)(1)(A) of such Code is amended by striking ``or 1201(a)''. (26)(A) The second sentence of section 7518(g)(6)(A) of such Code is amended-- (i) by striking ``during a taxable year to which section 1(h) or 1201(a) applies'', and (ii) by striking ``28 percent (34 percent'' and inserting ``19.8 percent (17.5 percent''. (B) The second sentence of section 607(h)(6)(A) of the Merchant Marine Act, 1936 is amended-- (i) by striking ``during a taxable year to which section 1(h) or 1201(a) of such Code applies'', and (ii) by striking ``28 percent (34 percent'' and inserting ``19.8 percent (17.5 percent''. (d) Effective Date.-- (1) In general.--Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. (2) Transitional rule.--The amendments made by subsection (c) (other than paragraph (3)) shall not apply to gains and losses properly taken into account for the portion of the taxable year before January 3, 1995. (3) Contributions.--The amendment made by subsection (c)(3) shall apply only to contributions on or after January 3, 1995. (4) Withholding.--The amendment made by subsection (c)(23) shall apply only to amounts paid after the date of the enactment of this Act. SEC. 1002. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF DETERMINING GAIN OR LOSS. (a) In General.--Part II of subchapter O of chapter 1 of the Internal Revenue Code of 1986 (relating to basis rules of general application) is amended by inserting after section 1021 the following new section: ``SEC. 1022. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF DETERMINING GAIN OR LOSS. ``(a) General Rule.-- ``(1) Indexed basis substituted for adjusted basis.--Except as otherwise provided in this subsection, if an indexed asset which has been held for more than 1 year is sold or otherwise disposed of, for purposes of this title the indexed basis of the asset shall be substituted for its adjusted basis. ``(2) Exception for depreciation, etc.--The deduction for depreciation, depletion, and amortization shall be determined without regard to the application of paragraph (1) to the taxpayer or any other person. ``(b) Indexed Asset.-- ``(1) In general.--For purposes of this section, the term `indexed asset' means-- ``(A) stock in a corporation, and ``(B) tangible property (or any interest therein), which is a capital asset or property used in the trade or business (as defined in section 1231(b)). ``(2) Certain property excluded.--For purposes of this section, the term `indexed asset' does not include-- ``(A) Creditor's interest.--Any interest in property which is in the nature of a creditor's interest. ``(B) Options.--Any option or other right to acquire an interest in property. ``(C) Net lease property.--In the case of a lessor, net lease property (within the meaning of subsection (i)(3)). ``(D) Certain preferred stock.--Stock which is fixed and preferred as to dividends and does not participate in corporate growth to any significant extent. ``(E) Stock in foreign corporations.--Stock in a foreign corporation. ``(F) Stock in s corporations.--Stock in an S corporation. ``(3) Exception for stock in foreign corporation which is regularly traded on national or regional exchange.--Paragraph (2)(E) shall not apply to stock in a foreign corporation the stock of which is listed on the New York Stock Exchange, the American Stock Exchange, the national market system operated by the National Association of Securities Dealers, or any domestic regional exchange for which quotations are published on a regular basis other than-- ``(A) stock of a foreign investment company (within the meaning of section 1246(b)), ``(B) stock in a passive foreign investment company (as defined in section 1296), and ``(C) stock in a foreign corporation held by a United States person who meets the requirements of section 1248(a)(2). ``(c) Indexed Basis.--For purposes of this section: ``(1) General rule.--Except as provided in paragraph (2), the indexed basis for any asset is-- ``(A) the adjusted basis of the asset, multiplied by ``(B) the applicable inflation ratio. ``(2) Applicable inflation ratio.--The applicable inflation ratio for any asset is the percentage arrived at by dividing-- ``(A) the gross national product deflator the calendar quarter in which the disposition takes place, by ``(B) the gross national product deflator for the calendar quarter in which the asset was acquired by the taxpayer (or, if later, the calendar quarter ending on December 31, 1994). The applicable inflation ratio shall not be taken into account unless it is greater than 1. The applicable inflation ratio for any asset shall be rounded to the nearest one-tenth of 1 percent. ``(3) Gross national product deflator.--The gross national product deflator for any calendar quarter is the implicit price deflator for the gross national product for such quarter (as shown in the first revision thereof). ``(d) Short Sales.-- ``(1) In general.--In the case of a short sale of an indexed asset with a short sale period in excess of 1 year, for purposes of this title, the amount realized shall be an amount equal to the amount realized (determined without regard to this paragraph) multiplied by the applicable inflation ratio. In applying subsection (c)(3) for purposes of the preceding sentence, the date on which the property is sold short shall be treated as the date on which the holding period for the asset begins and the closing date for the sale shall be treated as the date of disposition. ``(2) Short sale of substantially identical property.--If the taxpayer or the taxpayer's spouse sells short property substantially identical to an asset held by the taxpayer, the asset held by the taxpayer and the substantially identical property shall not be treated as indexed assets for the short sale period. ``(3) Short sale period.--For purposes of this subsection, the short sale period begins on the day after property is sold and ends on the closing date for the sale. ``(e) Treatment of Regulated Investment Companies and Real Estate Investment Trusts.-- ``(1) Adjustments at entity level.-- ``(A) In general.--Except as otherwise provided in this paragraph, the adjustment under subsection (a) shall be allowed to any qualified investment entity (including for purposes of determining the earnings and profits of such entity). ``(B) Exception for qualification purposes.--This section shall not apply for purposes of sections 851(b) and 856(c). ``(2) Adjustments to interests held in entity.-- ``(A) In general.--Stock in a qualified investment entity shall be an indexed asset for any calendar month in the same ratio as the fair market value of the assets held by such entity at the close of such month which are indexed assets bears to the fair market value of all assets of such entity at the close of such month. ``(B) Ratio of 90 percent or more.--If the ratio for any calendar month determined under subparagraph (A) would (but for this subparagraph) be 90 percent or more, such ratio for such month shall be 100 percent. ``(C) Ratio of 10 percent or less.--If the ratio for any calendar month determined under subparagraph (A) would (but for this subparagraph) be 10 percent or less, such ratio for such month shall be zero. ``(D) Valuation of assets in case of real estate investment trusts.-- Nothing in this paragraph shall require a real estate investment trust to value its assets more frequently than once each 36 months (except where such trust ceases to exist). The ratio under subparagraph (A) for any calendar month for which there is no valuation shall be the trustee's good faith judgment as to such valuation. ``(3) Qualified investment entity.--For purposes of this subsection, the term `qualified investment entity' means-- ``(A) a regulated investment company (within the meaning of section 851), and ``(B) a real estate investment trust (within the meaning of section 856). ``(f) Other Pass-Thru Entities.-- ``(1) Partnerships.-- ``(A) In general.--In the case of a partnership, the adjustment made under subsection (a) at the partnership level shall be passed through to the partners. ``(B) Special rule in the case of section 754 elections.--In the case of a transfer of an interest in a partnership with respect to which the election provided in section 754 is in effect-- ``(i) the adjustment under section 743(b)(1) shall, with respect to the transferor partner, be treated as a sale of the partnership assets for purposes of applying this section, and ``(ii) with respect to the transferee partner, the partnership's holding period for purposes of this section in such assets shall be treated as beginning on the date of such adjustment. ``(2) S corporations.--In the case of an S corporation, the adjustment made under subsection (a) at the corporate level shall be passed through to the shareholders. ``(3) Common trust funds.--In the case of a common trust fund, the adjustment made under subsection (a) at the trust level shall be passed through to the participants. ``(g) Dispositions Between Related Persons.-- ``(1) In general.--This section shall not apply to any sale or other disposition of property between related persons except to the extent that the basis of such property in the hands of the transferee is a substituted basis. ``(2) Related persons defined.--For purposes of this section, the term `related persons' means-- ``(A) persons bearing a relationship set forth in section 267(b), and ``(B) persons treated as single employer under subsection (b) or (c) of section 414. ``(h) Transfers To Increase Indexing Adjustment.--If any person transfers cash, debt, or any other property to another person and the principal purpose of such transfer is to secure or increase an adjustment under subsection (a), the Secretary may disallow part or all of such adjustment or increase. ``(i) Special Rules.--For purposes of this section: ``(1) Treatment as separate asset.--In the case of any asset, the following shall be treated as a separate asset: ``(A) A substantial improvement to property. ``(B) In the case of stock of a corporation, a substantial contribution to capital. ``(C) Any other portion of an asset to the extent that separate treatment of such portion is appropriate to carry out the purposes of this section. ``(2) Assets which are not indexed assets throughout holding period.-- The applicable inflation ratio shall be appropriately reduced for periods during which the asset was not an indexed asset. ``(3) Net lease property defined.--The term `net lease property' means leased property where-- ``(A) the term of the lease (taking into account options to renew) was 50 percent or more of the useful life of the property, and ``(B) for the period of the lease, the sum of the deductions with respect to such property which are allowable to the lessor solely by reason of section 162 (other than rents and reimbursed amounts with respect to such property) is 15 percent or less of the rental income produced by such property. ``(4) Treatment of certain distributions.--A distribution with respect to stock in a corporation which is not a dividend shall be treated as a disposition. ``(5) Section cannot increase ordinary loss.--To the extent that (but for this paragraph) this section would create or increase a net ordinary loss to which section 1231(a)(2) applies or an ordinary loss to which any other provision of this title applies, such provision shall not apply. The taxpayer shall be treated as having a long-term capital loss in an amount equal to the amount of the ordinary loss to which the preceding sentence applies. ``(6) Acquisition date where there has been prior application of subsection (a)(1) with respect to the taxpayer.--If there has been a prior application of subsection (a)(1) to an asset while such asset was held by the taxpayer, the date of acquisition of such asset by the taxpayer shall be treated as not earlier than the date of the most recent such prior application. ``(7) Collapsible corporations.--The application of section 341(a) (relating to collapsible corporations) shall be determined without regard to this section. ``(j) Regulations.--The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.'' (b) Clerical Amendment.--The table of sections for part II of subchapter O of chapter 1 of such Code is amended by inserting after the item relating to section 1021 the following new item: ``Sec. 1022. Indexing of certain assets for purposes of determining gain or loss.'' (c) Adjustment To Apply for Purposes of Determining Earnings and Profits.--Subsection (f) of section 312 of such Code (relating to effect on earnings and profits of gain or loss and of receipt of tax-free distributions) is amended by adding at the end thereof the following new paragraph: ``(3) Effect on earnings and profits of indexed basis.-- For substitution of indexed basis for adjusted basis in the case of the disposition of certain assets, see section 1022(a)(1).'' (d) Effective Date.--The amendments made by this section shall apply to dispositions after December 31, 1994, in taxable years ending after such date. SEC. 1003. CAPITAL LOSS DEDUCTION ALLOWED WITH RESPECT TO SALE OR EXCHANGE OF PRINCIPAL RESIDENCE. (a) In General.--Subsection (c) of section 165 of the Internal Revenue Code of 1986 (relating to limitation on losses of individuals) is amended by striking ``and'' at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ``; and'', and by adding at the end the following new paragraph: ``(4) losses arising from the sale or exchange of the principal residence (within the meaning of section 1034) of the taxpayer.'' (b) Effective Date.--The amendment made by subsection (a) shall apply to sales and exchanges on or after January 3, 1995, in taxable years ending after such date. TITLE II--NEUTRAL COST RECOVERY SEC. 2001. DEPRECIATION ADJUSTMENT FOR CERTAIN PROPERTY PLACED IN SERVICE IN TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1995. (a) In General.--Section 168 of the Internal Revenue Code of 1986 (relating to accelerated cost recovery system) is amended by adding at the end thereof the following new subsection: ``(j) Deduction Adjustment To Allow Equivalent of Expensing For Certain Property Placed in Service in Taxable Years Beginning After December 31, 1995.-- ``(1) In general.--In the case of tangible property placed in service in a taxable year beginning after December 31, 1995, the deduction allowable under this section with respect to such property for any taxable year (after the taxable year during which the property is placed in service) shall be-- ``(A) the amount so allowable for such taxable year without regard to this subsection, multiplied by ``(B) the applicable neutral cost recovery ratio for such taxable year. For purposes of subparagraph (A), paragraphs (1) and (2) of section 168(b) shall be applied by substituting `150 percent' for `200 percent'. ``(2) Applicable neutral cost recovery ratio.--For purposes of paragraph (1), the applicable neutral cost recovery ratio for any taxable year is the number determined by-- ``(A) dividing-- ``(i) the gross national product deflator for the calendar quarter ending in such taxable year which corresponds to the calendar quarter during which the property was placed in service by the taxpayer, by ``(ii) the gross national product deflator for the calendar quarter during which the property was placed in service by the taxpayer, and ``(B) then multiplying the number determined under subparagraph (A) by the number equal to 1.035 to the nth power where `n' is the number of full years in the period beginning on the 1st day of the calendar quarter during which the property was placed in service by the taxpayer and ending on the day before the beginning of the corresponding calendar quarter ending during such taxable year. The applicable neutral cost recovery ratio shall not be taken into account unless it is greater than 1. The applicable neutral cost recovery ratio shall be rounded to the nearest one-tenth of 1 percent. ``(3) Gross national product deflator.--For purposes of paragraph (2), the gross national product deflator for any calendar quarter is the implicit price deflator for the gross national product for such quarter (as shown in the first revision thereof). ``(4) Coordination with indexing of basis for purposes of determining gain or loss.--Section 1022 shall not apply to any property to which this subsection applies. ``(5) Election not to have subsection apply.--This subsection shall not apply to any property if the taxpayer elects not to have this subsection apply to such property. Such an election, once made, shall be irrevocable.'' (b) Minimum Tax Treatment.--Paragraph (1) of section 56(a) of such Code is amended by adding at the end thereof the following new subparagraph: ``(E) Use of Neutral Cost Recovery Ratio.--In the case of tangible property placed in service in a taxable year beginning after December 31, 1995, the deduction allowable under this paragraph with respect to such property for any taxable year (after the taxable year during which the property is placed in service) shall be-- ``(i) the amount so allowable for such taxable year without regard to this subparagraph, multiplied by ``(ii) the applicable neutral cost recovery ratio for such taxable year (as determined under section 168(j)). This subparagraph shall not apply to any property with respect to which there is an election in effect not to have section 168(j) apply.'' (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 1995. SEC. 2002. REPEAL OF SPECIAL DEPRECIATION RULES APPLICABLE UNDER THE ADJUSTED CURRENT EARNINGS PROVISIONS OF THE MINIMUM TAX. (a) In General.--Subparagraph (A) of section 56(g)(4) of the Internal Revenue Code of 1986 (relating to adjustments) is amended to read as follows: ``(A) Depreciation.-- ``(i) In general.--The depreciation deduction with respect to any property for any taxable year beginning after December 31, 1995, shall be the same as the depreciation deduction allowable in computing alternative minimum taxable income for such taxable year. ``(ii) Basis rules.--Notwithstanding subparagraph (I), the adjusted basis of any depreciable property held by the taxpayer as of the beginning of the taxpayer's first taxable year beginning after December 31, 1995, shall be determined as if the provisions of clause (i) had also applied to taxable years beginning in 1993, 1994, or 1995. ``(iii) Lost basis recovered over 5 years.--The amount determined under clause (iv) shall be allowed as a deduction ratably over the 60- month period beginning with the first month of the taxpayer's first taxable year beginning after December 31, 1995. ``(iv) Amount of lost basis.--The amount determined under this clause is the excess of-- ``(I) the aggregate adjusted bases of depreciable property held by the taxpayer as of the beginning of the taxpayer's first taxable year beginning after December 31, 1995, which would have been determined (as of such time) under subparagraph (I) without regard to clause (ii), over ``(II) the aggregate adjusted bases of such property (as of such time) as determined under the rules of clause (ii).'' (b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1995. TITLE III--RISK ASSESSMENT AND COST/BENEFIT ANALYSIS FOR NEW REGULATIONS Subtitle A--Risk Communication SEC. 3101. SHORT TITLE. This subtitle may be cited as the ``Risk Communication Act of 1995''. SEC. 3102. PURPOSES. The purposes of this subtitle are-- (1) to present the public and executive branch with the most scientifically objective information concerning the nature and magnitude of health, safety, and environmental risks in order to provide for sound regulatory decisions and public education; (2) to provide for full consideration and discussion of relevant data and potential methodologies; (3) to require explanation of significant choices in the risk assessment process which will allow for better peer review and public understanding; and (4) to improve consistency within the executive branch in preparing risk assessments and risk characterizations. SEC. 3103. EFFECTIVE DATE; APPLICABILITY; SAVINGS PROVISIONS. (a) Effective Date.--Except as otherwise specifically provided in this subtitle, the provisions of this subtitle shall take effect 2 years after the date of enactment of this subtitle. (b) Applicability.--(1) Except as provided in paragraph (2), this title applies to all risk assessments and risk characterizations prepared by or on behalf of the executive branch in connection with health, safety, and environmental risks. (2) This title does not apply to risk assessments or risk characterizations performed with respect to a situation that the head of any Federal department, agency, or instrumentality considers to be an emergency or to screening analyses where the results of such analyses are not used as the basis for imposing restrictions on substances or activities and the results of the analyses are not used to characterize a positive finding of risks from substances or activities in any final agency document made available to the general public. (c) Savings Provisions.--Nothing in this title shall be construed to modify any statutory standard or requirement designed to protect health, safety, or the environment. SEC. 3104. PRINCIPLES FOR RISK ASSESSMENT. (a) In General.--The head of each Federal department, agency, or instrumentality shall apply the principles set forth in subsection (b) when preparing risk assessments in order to assure that such risk assessments and all of their components are, to the maximum extent possible, scientifically objective and inclusive of all relevant data. Discussions or explanations required under this section need not be repeated in each risk assessment document as long as there is a reference to the relevant discussion or explanation in another agency document. (b) Principles.--The principles to be applied when preparing risk assessments are the following: (1) Risk assessment shall explicitly distinguish scientific findings in risk assessments from other considerations affecting the design and choice of regulatory strategies. (2) The risk assessment shall consider and discuss both negative and positive laboratory or epidemiological data of sufficient quality when presenting assessments of human health risks. Where conflicts among such data appear to exist, the assessment shall include discussion of possible reconciliation of conflicting information, which may include differences in study designs, comparative physiology, routes of exposure, bioavailability, pharmacokinetics, and any other relevant factor. (3) Where the risk assessment process involves selection of any significant assumption, inference, or model, the department, agency, or instrumentality preparing the assessment shall (A) present a representative list and explanation of plausible and alternative assumptions, inferences, or models; (B) explain the basis for any choices; and (C) identify any policy or value judgments. The department, agency, or instrumentality preparing the assessment shall also indicate the extent to which any significant model has been validated by or conflicts with empirical data. SEC. 3105. PRINCIPLES FOR RISK CHARACTERIZATION. In characterizing risk in any risk assessment document, regulatory proposal or decision, report to Congress, or other document which is made available to the public, the department, agency, or instrumentality preparing the assessment shall comply with each of the following: (1) The head of such department, agency, or instrumentality shall characterize the populations or natural resources at risk. If a numerical estimate of risk is provided, the departments and agencies shall, to the extent feasible, provide the best estimate or estimates for the populations or natural resources at risk, given the information available to the department, agency, or instrumentality, along with a statement of the reasonable range of scientific uncertainty. In addition to the best estimate, the head of such department, agency, or instrumentality may present plausible upper-bound or conservative estimates in conjunction with plausible lower bounds estimates. Where appropriate, the head of such department, agency, or instrumentality may present, in lieu of a single best estimate, multiple estimates based on assumptions, inferences, or models which are equally plausible, given current scientific understanding. (2) The head of such department, agency, or instrumentality shall explain the range of exposure scenarios used in any risk assessment, and, to the extent feasible, provide a statement of the size of the corresponding population at risk and the likelihood of such exposure scenarios. (3) To the extent feasible, the head of such department, agency, or instrumentality shall provide appropriate comparisons with estimates of other risks, including those that are familiar to and routinely encountered by the general public. (4) When the head of such department, agency, or instrumentality provides a risk assessment or risk characterization for proposed and final regulatory actions, such assessment or characterization shall include a statement of any known and significant substitution risks. (5) In any case in which the head of such department, agency, or instrumentality provides a public comment period with respect to a risk assessment or regulation, and a commenter provides a risk assessment and summary of results that is consistent with the principles and the guidance provided under this subtitle, the head of such department, agency, or instrumentality shall present the summary of results of such risk assessment in connection with the presentation of the risk assessment (if any) or regulation. SEC. 3106. GUIDANCE, PLAN FOR ASSESSING NEW INFORMATION, AND REPORT. (a) Guidance.--Within 18 months after the date of enactment of this subtitle, the head of each department, agency, or instrumentality shall issue guidance consistent with the risk assessment and characterization principles stated in sections 3104 and 3105 and shall provide a format for summarizing risk assessment results. (b) Additional Subjects Addressed.--In addition to including the principles set forth in sections 3104 and 3105, the guidance issued under this section shall include guidance on at least the following subjects: interspecies scaling factors; use of different types of dose- response models; thresholds; definitions, use, and interpretations of the maximum tolerated dose; weighting of positive and negative findings from sensitive species; evaluation of benign tumors, and evaluation of different health endpoints. (c) Plan.--Within 2 years after the date of enactment of this subtitle, the head of such department, agency, or instrumentality shall publish a plan to review and revise any risk assessment with respect to which he determines there is significant new information or methodologies available that could significantly alter the prior results of the risk assessment. The plan shall provide procedures for receiving and considering new information and risk assessments from the public. The plan may set priorities for review and revision of risk assessments based on factors the head of such department, agency, or instrumentality considers appropriate. (d) Report.--Within 3 years after the enactment of this subtitle, the head of such department, agency, or instrumentality shall provide a report to the Congress evaluating the policy and value judgments of the type identified under paragraph (3) of section 3104 which are made in risk assessments performed. (e) Public Comment and Consultation.--The guidance, plan and report under this section, shall be developed after notice and opportunity for public comment, representatives of appropriate State agencies, and such other departments and agencies, offices, organizations, or persons as may be advisable. (f) Review.--Guidance promulgated under this section shall be reviewed by the head of such department, agency, or instrumentality concerned at least every 4 years in accordance with subsection (d). SEC. 3107. DEFINITIONS. For purposes of this subtitle: (1) The term ``risk assessment'' means the process of identifying hazards and quantifying or describing the degree of risk they pose for exposed individuals, populations, or resources. It also refers to the document containing the explanation of how the assessment process has been applied to an individual substance, activity, or condition. (2) The term ``risk characterization'' means that element of a risk assessment that involves presentation of the degree of risk in any regulatory proposal or decision, report to Congress, or other document which is made available to the public. The term includes discussions of uncertainties, conflicting data, estimates, extrapolations, inferences, and opinions. (3) The term ``best estimate'' means an estimate based on (A) central estimates of risk using the most unbiased assumptions and models, (B) an approach which combines multiple estimates based on different scenarios and weighs the probability of each scenario or (C) any other methodology designed to provide the most unbiased representation of the most plausible level of risk, given the current scientific information available to the department, agency, or instrumentality concerned. (4) The term ``negative data'' means data indicating that under certain conditions a given substance or activity did not induce an adverse effect. (5) The term ``substitution risk'' means a potential increased risk to human health, safety, or the environment from a regulatory option designed to decrease other risks. Subtitle B--Requirement to Perform Risk Assessments and Cost/Benefit Analyses SEC. 3201. REQUIREMENT TO PREPARE RISK ASSESSMENTS AND COST/BENEFIT ANALYSES. (a) In General.--Except as provided in subsection (b), the President shall require that each executive branch agency shall prepare for each major rule relating to human health, safety, or the environment that is proposed by the agency after the date of enactment of this Act-- (1) a risk assessment in accordance with subtitle A; (2) an assessment of the costs and benefits associated with implementation of, and compliance with, the major rule; (3) an analysis comparing the economic and compliance costs of the major rule with the likely benefits of the rule to human health and the environment; and (4) a certification by the head of the agency that-- (A) the risk assessment under paragraph (1) and the analysis under paragraph (2) are based on a scientific evaluation of the risk addressed by the major rule and are supported by the best available scientific data, as determined by a peer review panel in accordance with subtitle C; (B) the major rule will substantially advance the purpose of protecting human health or the environment, as applicable, against the risk addressed by the major rule; and (C) the major rule will produce benefits to human health or the environment that will justify the costs incurred by local and State governments, the Federal Government, and other public and private entities as a result of implementation of and compliance with the rule, as determined under paragraph (2). (b) Major Rule Defined.--For purposes of this section, the term ``major rule'' has the meaning given that term in section 7004(b). Subtitle C--Sound Science SEC. 3301. ESTABLISHMENT OF INDEPENDENT PEER REVIEW PANELS. (a) Establishment.--The head of a Federal agency shall establish for each risk assessment and cost/benefit analysis required by this title an independent peer review panel to certify that the assessment and analysis incorporates the best available scientific data and methods of analysis. (b) Membership.--Each peer review panel established under this section shall consist of individuals who-- (1) are scientific experts in the appropriate disciplines with recent professional experience with the substance for which risk assessment and cost/benefit analysis is conducted by the panel; (2) have recent professional experience conducting a risk assessment, an assessment of the costs of a regulation, or an assessment of the benefits of a regulation; (3) have filed and made publicly available financial disclosure forms; and (4) have not been involved in any previous analysis of the tests and evidence presented for certification by the review panel. (c) Termination.--A peer review panel shall terminate upon submission of a report under section 3302 with respect to the risk assessment and cost/benefit analysis for which the panel was established. SEC. 3302. PROCEDURES FOR PEER REVIEW. (a) Submission to Panel.--The head of a Federal agency shall submit to the peer review panel established under this subtitle for a risk assessment and cost/benefit analysis all data and testing (including the details of the methodology) used by the agency for the assessment and analysis. (b) Report and Recommendations.-- (1) In general.--Within 60 days after the date on which the head of a Federal agency submits data and testing under subsection (a) for a proposed major rule, the peer review panel shall transmit to the head of the agency a report and recommendations on whether the data and tests (including methodology) are the best available scientific data and procedures under which the basis for the proposed major rule may be examined. (2) Contents.--A report and recommendations under this subsection for an agency risk assessment and cost/benefit analysis shall include-- (A) an evaluation of the technical and scientific merit of the data and scientific method used for the assessment and analysis; (B) a list of any considerations that were not taken into account in the assessment and analysis, but were considered appropriated by a majority of the members of the peer review panel; and (C) a discussion of the methodology used for the assessment and analysis. (3) Comments and appendix.--Each peer review report under this subsection shall include-- (A) all comments supported by a majority of the members of the peer review panel submitting the report; and (B) an appendix which sets forth the dissenting opinions that any peer review panel member wants to express. SEC. 3303. REQUIREMENT FOR NEW RISK ASSESSMENT OR COST/BENEFIT ANALYSIS. If a peer review panel established under this subtitle includes in a report under section 3302 for a proposed major rule a negative recommendation regarding the data or methods used for a risk assessment cost/benefit analysis on which the major rule is based, the proposed major rule may not be issued in final form unless the head of the agency which proposed the major rule-- (1) prepares a new risk assessment or cost/benefit analysis, as applicable, for the proposed major rule in accordance with this title; and (2) submits the new assessment and analysis for peer review in accordance with this subtitle. Subtitle D--Citizen Suits SEC. 3401. CIVIL ACTION. Whoever is adversely affected by any conduct in violation of this title may in a civil action obtain appropriate relief. The court may award a prevailing plaintiff in an action under this section a reasonable attorney's fees as a part of the costs. TITLE IV--ESTABLISHMENT OF FEDERAL REGULATORY BUDGET COST CONTROL SEC. 4001. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF 1974. (a) Federal Regulatory Budget Cost Control System.--Title III of the Congressional Budget Act of 1974 is amended by inserting before section 300 the following new center heading ``PART A--GENERAL PROVISIONS'' and by adding at the end the following new part: ``PART B--FEDERAL REGULATORY BUDGET COST CONTROL ``SEC. 321. OMB-CBO REPORTS. ``(a) OMB-CBO Initial Report.--Within 1 year after the date of enactment of this section, OMB and CBO shall jointly issue a report to the President and each House of Congress that contains the following: ``(1) For the first budget year beginning after the issuance of this report, a projection of the aggregate direct cost to the private sector of complying with all Federal regulations and rules in effect immediately before issuance of the report containing the projection for that budget year of the effect of current-year Federal regulations and rules into the budget year and the outyears based on those regulations and rules. ``(2) A calculation of the estimated aggregate direct cost to the private sector of compliance with all Federal regulations and rules as a percentage of the gross domestic product (GDP). ``(3) The estimated marginal cost (measured as a reduction in estimated gross domestic product) to the private sector of compliance with all Federal regulations and rules in excess of 5 percent of the gross domestic product. ``(4) The effect on the domestic economy of different types of Federal regulations and rules. ``(5) The appropriate level of personnel, administrative overhead, and programmatic savings that should be achieved on a fiscal year by fiscal year basis by Federal agencies that issue regulations or rules with direct costs to the private sector through the reduction of such aggregate costs to the private sector by equal percentage increments in the 6 years following the budget year until the aggregate level of such costs does not exceed 5 percent of the estimated gross domestic product for the same fiscal year as the estimated costs that will be incurred. ``(6) Recommendations for budgeting, technical, and estimating changes to improve the Federal regulatory budgeting process. ``(b) Update Reports.--OMB and CBO shall issue update reports on September 15th of the fifth year beginning after issuance of the initial report and at 5-year intervals thereafter containing all the information required in the initial report, but based upon all Federal regulations and rules in effect immediately before issuance of the most recent update report. ``(c) Initial Baseline Report.--Within 30 days after the date of enactment of this section, OMB and CBO shall jointly issue a report to the President and each House of Congress that contains an initial aggregate regulatory baseline for the first budget year that begins at least 120 days after that date of enactment. That baseline will be a projection of the aggregate direct cost to the private sector of complying with all Federal regulations and rules in effect immediately before issuance of the report containing the projection for that budget year of the effect of current-year Federal regulations and rules into the budget year and the outyears based on those regulations and rules. ``SEC. 322. AGGREGATE REGULATORY BASELINE. ``(a) In General.--For the first budget year beginning after the date of enactment of this section and for every other fiscal year thereafter, the aggregate regulatory baseline refers to a projection of the aggregate direct cost to the private sector of complying with all Federal regulations and rules in effect immediately before issuance of the report containing the projection for that budget year of the effect of current-year Federal regulations and rules into the budget year and the outyears based on those regulations and rules. However, in the case of each of the succeeding fiscal years, the baseline shall be adjusted for the estimated growth during that year in the gross domestic product (GDP) ``(b) OMB-CBO Aggregate Regulatory Baseline Reports.--(1) The first budget year for which there shall be an aggregate regulatory baseline shall be the budget year to which the initial OMB-CBO baseline report issued under section 321(c) pertains. ``(2) In the case of each budget year after the budget year referred to in paragraph (1), not later than September 15 of the current year, OMB and CBO shall jointly issue a report containing the baseline referred to in subsection (a) for that budget year. ``SEC. 323. RECONCILIATION AND ALLOCATIONS. ``(a) Reconciliation Directives.--In addition to the requirements of section 310, a concurrent resolution on the budget for any fiscal year shall specify-- ``(1) changes in laws and regulations and rules necessary to reduce the aggregate direct cost to the private sector of complying with all Federal regulations by 6.5 percent for the budget year (as measured against the aggregate regulatory baseline for the first budget year to which this part applies) and by equal percentage increments for each of the outyears (until the aggregate level of such costs does not exceed 5 percent of the estimated gross domestic product for the same fiscal year as the estimated costs that will be incurred) for Federal agencies that issue regulations or rules producing direct costs to the private sector; and ``(2) changes in laws necessary to achieve reductions in the level of personnel and administrative overhead and to achieve programmatic savings for the budget year and the outyears for those agencies of the following: ``(A) In the first outyear, one-fourth of the percent of reduction in regulatory authority from the aggregate regulatory base. ``(B) In the second outyear, one-third of the percent of reduction in regulatory authority from the aggregate regulatory base. ``(C) In the third, fourth, fifth, and sixth years following the budget year, one-half of the percent of reduction in regulatory authority from the aggregate regulatory base. Section 310(c) shall not apply with respect to directions made under this section. ``(b) Allocation of Totals.--(1) The Committees on the Budget of the House or Representatives and the Senate shall each allocate aggregate 2- year regulatory authority among each committee of its House and by major functional category for the first budget year beginning after the date of enactment of this section and for the second, fourth, and sixth years following the budget year and then every other year thereafter. ``(2) As soon as practicable after receiving an allocation under paragraph (1), each committee shall subdivide its allocation among its subcommittees or among programs over which it has jurisdiction. ``(c) Point of Order.--(1) It shall not be in order in the House of Representatives or the Senate to consider any bill or resolution, or amendment thereto, which would cause the appropriate allocation made under subsection (b) for a fiscal year of regulatory authority to be exceeded. ``(2) Waiver.--The point of order set forth in paragraph (1) may only be waived by the affirmative vote of at least three-fifths of the Members voting, a quorum being present. ``(d) Determinations by Budget Committees.--For purposes of this section, the level of regulatory authority for a fiscal year shall be determined by the Committee on the Budget of the House of Representatives or the Senate, as the case may be. ``(e) Exceeding Allocation Totals.--Whenever any Committee of the House of Representatives exceeds its allocation of aggregate 2-year regulatory authority under subsection (b)(1), any Member of the House of Representatives may offer a bill in the House (which shall be highly privileged, unamendable, and debateable for 30 minutes) which shall only prohibit the issuance of regulations and rules by any agency under the jurisdiction of that committee for the fiscal years covered by that allocation until that committee eliminates its breach. ``SEC. 324. ANALYSIS OF REGULATORY COSTS BY CONGRESSIONAL BUDGET OFFICE. ``CBO shall prepare for each bill or resolution of a public character reported by any committee of the House of Representatives or the Senate (except the Committee on Appropriations of each House), and submit to such committee-- ``(1) an estimate of the costs which would be incurred by the private sector in carrying out or complying with such bill or resolution in the fiscal year in which it is to become effective and in each of the 4 fiscal years following such fiscal year, together with the basis of each such estimate; and ``(2) a comparison of the estimate of costs described in paragraph (1) with any available estimates of costs made by such committee or by any Federal agency. ``SEC. 325. DEFINITIONS. ``As used in this part: ``(1) The term `CBO' refers to the Director of the Congressional Budget Office. ``(2) The term `OMB' refers to the Director of the Office of Management and Budget. ``(3) The term `regulatory authority' or `regulatory cost' means the direct cost to the private sector of complying with Federal regulations and rules. ``(4) The term `direct costs' means (recognizing that direct costs are not the only costs associated with Federal regulation) all expenditures occurring as a direct result of complying with Federal regulation, rule, statement, or legislation, except those applying to the military or agency organization, management, and personnel. ``(5) The term `regulation' or the term `rule' means any agency statement of general applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the procedure or practice requirements of any agency, but does not include-- ``(A) administrative actions governed by the provisions of sections 556 and 557 of title 5, United States Code; or ``(B) rules or regulations issued with respect to a military or foreign affairs function of the United States. ``(6) The term `agency' means any authority of the United States that is an agency under title section 3502(1) of title 44, United States Code, including independent agencies.''. SEC. 4002. PRESIDENT'S ANNUAL BUDGET SUBMISSIONS. Section 1105(a) of title 31, United States Code, is amended by adding at the end the following new paragraph: ``(29) a regulatory authority budget analysis of the aggregate direct cost to the private sector of complying with all current and proposed Federal regulations and rules and proposals for complying with section 323 of the Congressional Budget Act of 1974 for the budget year and the outyears.'' SEC. 4003. ESTIMATION AND DISCLOSURE OF COSTS OF FEDERAL REGULATION. (a) Costs to Private Sector of New Federal Regulations and Rules.-- Chapter 6 of title 5, United States Code, popularly known as the ``Regulatory Flexibility Act'', is amended-- (1) in section 603(a) in the second sentence by inserting before the period the following: ``and the monetary costs to small entities, other businesses, and individuals of complying with the proposed rule''; (2) by adding at the end of section 603 the following: ``(d) Each initial regulatory flexibility analysis shall also contain a description of the nature and amount of monetary costs that will be incurred by small entities, other businesses, and individuals in complying with the proposed rule.''; (3) in section 604(a)-- (A) in paragraph (2) by striking ``and'' after the semicolon; (B) in paragraph (3) by striking the period and inserting ``; and''; and (C) by adding at the end the following: ``(4) a statement of the nature and amount of monetary costs that will be incurred by small entities, other businesses, and individuals in complying with the rule.''; and (4) in section 607 by inserting before the period the following: ``, except that estimates of monetary costs under sections 603(d) and 604(a)(4) shall only be in the form of a numerical description''. (b) Agency Reports.--Each agency that prepares an initial regulatory flexibility analysis under chapter 6 of title 5, United States Code, shall, at the same time submit to each House of Congress and to CBO and OMB a cost estimate and cost/benefit analysis of any new proposed regulations and rules that would have an aggregate direct cost to the private sector of at least $10,000,000 for any fiscal year. TITLE V--STRENGTHENING OF PAPERWORK REDUCTION ACT SEC. 5001. SHORT TITLE. This title may be cited as the ``Paperwork Reduction Act of 1995''. Subtitle A--Authorization of Appropriations SEC. 5101. AUTHORIZATION OF APPROPRIATIONS. Section 3520(a) of title 44, United States Code, is amended by striking out ``$5,500,000 for each of the fiscal years 1987, 1988, and 1989.'' and inserting in lieu thereof ``$7,000,000 for fiscal year 1994, $7,500,000 for fiscal year 1995, $8,000,000 for fiscal year 1996, $8,500,000 for fiscal year 1997, and $9,000,000 for fiscal year 1998.''. Subtitle B--Reducing the Burden of Federal Paperwork on the Public SEC. 5201. COVERAGE OF ALL FEDERALLY SPONSORED PAPERWORK BURDENS. Section 3502 of title 44, United States Code, is amended-- (1) by amending paragraph (3) to read as follows: ``(3) the term `burden' means the time, effort, financial resources, and opportunity costs imposed on persons to generate, capture, assemble, process, maintain, and report information to or for a Federal agency, including-- ``(A) the resources expended for obtaining, reviewing and understanding applicable instructions and requirements; ``(B) developing a way to comply with the applicable instructions and requirements; ``(C) adjusting the existing ways to comply with any previously applicable instructions and requirements; ``(D) searching existing data sources; ``(E) obtaining, compiling and maintaining the necessary data; ``(F) implementing recordkeeping requirements; ``(G) completing and reviewing the collection of information; ``(H) retaining, sharing, notifying, reporting, transmitting, labeling, or otherwise disclosing to third parties or the public the information involved; and ``(I) carrying out any other information transaction which occurs as a result of the collection of information;''; (2) in paragraph (4) by striking out ``of facts or opinions by'' and inserting in lieu thereof ``(through maintenance, retention, notifying, reporting, labeling or disclosure to third parties or the public) of facts or opinions by or for''; and (3) in paragraph (17) by inserting ``, including the retention, reporting, notifying, or disclosure to third parties or the public of such records'' before the period. SEC. 5202. PAPERWORK REDUCTION GOALS. Section 3505 of title 44, United States Code, is amended to read as follows: `` 3505. Assignment of tasks and deadlines ``In carrying out the functions under this chapter, the Director shall-- ``(1) set a governmentwide goal, consistent with improving agency management of the process for the review of each collection of information established under section 3506(e), to reduce by September 30, 1995, the burden of Federal collections of information existing on September 30, 1994, by at least 5 percent; ``(2) for the fiscal year beginning on October 1, 1995, and the following 3 fiscal years, set a governmentwide goal, consistent with improving agency management of the process for the review of each collection of information established under section 3506(e), to reduce the burden of Federal collections of information existing at the end of the immediately preceding fiscal year by at least 5 percent; ``(3) in establishing the governmentwide goal pursuant to paragraph (2), establish a goal for each agency that-- ``(A) represents the maximum practicable opportunity to reduce the paperwork burden imposed upon the public by such agency's collections of information, after considering the recommendations of the senior agency official designated under section 3506(b)(1); and ``(B) permits the attainment of the governmentwide goal when such agency's goal is aggregated with the individual goals of all other agencies included in the governmentwide goal; and ``(4) in each report issued under section 3514, beginning with the report relating to fiscal year 1995, identify any agency initiatives to reduce the burden of the Federal collections of information associated with-- ``(A) businesses, especially small businesses and those engaged in international competition; ``(B) State and local governments; and ``(C) educational institutions.''. Subtitle C--Enhancing Government Responsibility and Accountability for Reducing the Burden of Federal Paperwork SEC. 5301. REEMPHASIZING THE RESPONSIBILITY OF THE DIRECTOR TO CONTROL THE BURDEN OF FEDERAL PAPERWORK. Section 3504(c) of title 44, United States Code, is amended-- (1) in paragraph (3) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and inserting after subparagraph (A) the following new subparagraph: ``(B) display, to the extent practicable, an estimate of the burden for each response;''; (2) by amending paragraphs (5) and (6) to read as follows: ``(5) establishing procedures under which an agency is to estimate the burden under this chapter to comply with the proposed collection of information; ``(6) coordinating with the Office of Federal Procurement Policy to eliminate paperwork burdens associated with procurement and acquisition;''; (3) by striking out the period at the end of paragraph (7) and inserting in lieu thereof a semicolon; and (4) by adding at the end thereof the following new paragraphs: ``(8) minimizing the Federal paperwork burden imposed through Federal collection of information, with particular emphasis on those individuals or entities most adversely affected, including-- ``(A) businesses, especially small businesses and those engaged in international competition; ``(B) State and local governments; and ``(C) educational institutions; and ``(9) initiating and conducting, with selected agencies and non- Federal entities on a voluntary basis, pilot projects to test or demonstrate the feasibility and benefit of changes or innovations in Federal policies, rules, regulations, and agency procedures to improve information management practices and related management activities (including authority for the Director to waive the application of designated agency regulations or administrative directives after giving timely notice to the public and Congress regarding the need for such waiver).''. SEC. 5302. ENHANCING AGENCY RESPONSIBILITY TO OBTAIN PUBLIC REVIEW OF PROPOSED PAPERWORK BURDENS. Section 3507(a) of title 44, United States Code, is amended-- (1) in paragraph (2)(B) by inserting ``a summary of the request,'' after ``title for the information collection request,''; (2) by striking out ``and'' at the end of paragraph (2); and (3) by redesignating paragraph (3) as paragraph (4) and inserting after paragraph (2) the following: ``(3) the agency provides at least 30 days for public comment to the agency and the Office of Management and Budget after publication of the notice in the Federal Register, except as provided under section 3507 (g) and (k), and the agency head and the Director consider comments received regarding the proposed collection of information; and''. SEC. 5303. EXPEDITING REVIEW AT THE OFFICE OF MANAGEMENT AND BUDGET. Section 3507(b) of title 44, United States Code, is amended-- (1) by striking out the first sentence and inserting in lieu thereof ``The Director shall within 30 days after publication of the notice under subsection (a)(3) that is applicable to a proposed information collection request not contained in a proposed rule, notify the agency involved of the decision to approve or disapprove the proposed information collection request and shall make such decisions publicly available. Any decision to disapprove an information collection request shall include an explanation of the reasons for such decision.''; (2) by striking out ``sixty'' each place it appears and inserting ``30'' in each such place; (3) by striking out ``thirty'' and inserting in lieu thereof ``30''; and (4) by striking out ``one'' and inserting in lieu thereof ``1''. SEC. 5304. IMPROVING PUBLIC AND AGENCY SCRUTINY OF PAPERWORK BURDENS PROPOSED FOR RENEWAL. (a) Approval of Information Collection Request.--Section 3507(d) of title 44, United States Code, is amended-- (1) by inserting ``(1)'' after ``(d)''; and (2) by adding at the end thereof the following: ``(2)(A) If the head of the agency, or the senior official designated under section 3506(b)(1), decides to seek extension of the Director's approval granted for a currently approved information collection request, the agency shall, through the notice prescribed in subsection (a)(2)(B) and such other practicable steps as may be reasonable, seek comment from the agencies, and the public on the continued need for, and burden imposed by, the collection of information. ``(B) The agency, after having made a reasonable effort to seek comment under subparagraph (A), but no later than 60 days before the expiration date of the control number assigned by the Director for the currently approved information collection request, shall-- ``(i) evaluate the public comments received; ``(ii) conduct the review established under section 3506(e); and ``(iii) provide to the Director the certification required by section 3506(f), including the text of the certification and any additional relevant information regarding how the information collection request comports with the principles and requirements of this chapter. ``(C) Upon receipt of such certification, and prior to the expiration of the control number for that information collection request, the Director shall-- ``(i) ensure that the agency has taken the actions specified under section 3506(f)(2); ``(ii) evaluate the public comments received by the agency or by the Director; ``(iii) determine whether the agency certification complies with the standards under section 3506(f)(1); and ``(iv) approve or disapprove the information collection request under this chapter. ``(3) If a certification is not provided to the Director prior to the beginning of the 60-day period before the expiration of the control number as provided under paragraph (2)(B), the agency shall submit the information collection request for review and approval or disapproval under this chapter. ``(4) An agency may not make a substantive or material modification to an information collection request after it has been approved by the Director, unless the modification has been submitted to the Director for review and approval or disapproval under this chapter.''. (b) Approval of Information Collection Requirements.--Section 3507 of title 44, United States Code, is further amended by adding at the end thereof the following new subsections: ``(i)(1) As soon as practicable, but no later than publication of a notice of proposed rulemaking in the Federal Register, each agency shall forward to the Director a copy of any proposed rule which contains a collection of information requirement and upon request, information necessary to make the determination required under this chapter. ``(2) Within 60 days after the notice of proposed rulemaking is published in the Federal Register, the Director may file public comments under the standards set forth in section 3508 on the collection of information requirement contained in the proposed rule. ``(3) When a final rule is published in the Federal Register, the agency shall explain how any collection of information requirement contained in the final rule responds to the comments, if any, filed by the Director or the public, or explain the reasons such comments were rejected. ``(4) The Director has no authority to disapprove any collection of information requirement specifically contained in an agency rule, if the Director has received notice and failed to comment on the rule within 60 days after the notice of proposed rulemaking. ``(5) No provision in this section shall be construed to prevent the Director, at the discretion of such officer, from-- ``(A) disapproving any information collection request which was not specifically required by an agency rule; ``(B) disapproving any collection of information requirement contained in an agency rule, if the agency failed to comply with the requirements of paragraph (1) of this subsection; ``(C) disapproving any collection of information requirement contained in a final agency rule, if the Director finds within 60 days after the publication of the final rule that such a collection of information requirement cannot be approved under the standards set forth in section 3508, after reviewing the agency's response to the comments of the Director filed under paragraph (2) of this subsection; or ``(D) disapproving any collection of information requirement, if the Director determines that the agency has substantially modified, in the final rule, the collection of information requirement contained in the proposed rule and the agency has not given the Director the information required under paragraph (1) with respect to the modified collection of information requirement, at least 60 days before the issuance of the final rule. ``(6) The Director shall make publicly available any decision to disapprove a collection of information requirement contained in an agency rule, together with the reasons for such decision. ``(7) The authority of the Director under this subsection is subject to subsection (c). ``(8) This subsection shall apply only when an agency publishes a notice of proposed rulemaking and requests public comments. ``(9) The decision of the Director to approve or not to act upon a collection of information requirement contained in an agency rule shall not be subject to judicial review. ``(j)(1) If the head of the agency, or the senior official designated under section 3506(b)(1), decides to seek extension of the Director's approval granted for a currently approved collection of information requirement, the agency shall, through the notice prescribed in subsection (a)(2)(B) and such other practicable steps as may be reasonable, seek comment from the agencies, and the public on the continued need for, and burden imposed by, the collection of information requirement. ``(2) The agency, after having made a reasonable effort to seek comment under paragraph (1), but no later than 60 days before the expiration date of the control number assigned by the Director for the currently approved collection of information requirement, shall-- ``(A) evaluate the public comments received; ``(B) conduct the review established under section 3506(e); and ``(C) provide to the Director the certification required by section 3506(f), including the text of the certification and any additional relevant information regarding how the collection of information requirement comports with the principles and requirements of this chapter. ``(3) Upon receipt of such certification, and prior to the expiration date of the control number for that collection of information requirement, the Director shall-- ``(A) ensure that the agency has taken the actions specified in section 3506(f)(2); ``(B) evaluate the public comments received by the agency or by the Director; ``(C) determine whether the agency certification complies with the standards under section 3506(f)(1); and ``(D) approve or disapprove the collection of information requirement under this chapter. ``(4) If under the provisions of paragraph (3), the Director disapproves a collection of information requirement, or recommends or instructs the agency to make a substantive or material change to a collection of information requirement, the Director shall-- ``(A) publish an explanation thereof in the Federal Register; and ``(B) instruct the agency to undertake a rulemaking within a reasonable time limited to consideration of changes to the collection of information requirement and thereafter to submit the collection of information requirement for approval or disapproval under this chapter. ``(5) Nothing in this subsection affects the review process for a collection of information requirement contained in a proposed rule, including a proposed change to an existing collection of information requirement, under subsection (i) with respect to such collection of information requirement. ``(6) The Director may not approve a collection of information requirement for a period in excess of 3 years.''. SEC. 5305. PROTECTION FOR WHISTLEBLOWERS OF UNAUTHORIZED PAPERWORK BURDEN. Section 3507(h) of title 44, United States Code, is amended in the second sentence by inserting before the period ``, and any communication relating to a collection of information, the disclosure of which could lead to retaliation or discrimination against the communicator''. SEC. 5306. ENHANCING PUBLIC PARTICIPATION. Section 3517 of title 44, United States Code, is amended-- (1) by inserting ``(a)'' before ``In development''; and (2) by adding at the end thereof: ``(b)(1) Under procedures established by the Director, a person may request the Director to review any collection of information conducted by or for an agency to determine, if-- ``(A) the collection of information is subject to the requirements of this chapter; ``(B) the collection of information has been approved in conformity with this chapter; and ``(C) the person that is to respond to the collection of information is entitled to the public protections afforded by this chapter. ``(2) Any review requested under paragraph (1), unless the request is determined frivolous or does not on its face state a valid basis for such review, shall-- ``(A) be completed by the Director within 60 days after receiving the request, unless such period is extended by the Director to a specified date and the person making the request is given notice of such extension; ``(B)(i) be coordinated with the agency responsible for the collection of information to which the request relates; and ``(ii) be coordinated with the Administrator for Federal Procurement Policy, if the request relates to a collection of information applicable to an actual or prospective Federal contractor or subcontractor at any tier; and ``(C) result in a written determination by the Director, that shall be-- ``(i) furnished to the person making the request; and ``(ii) made available to the public upon request (and listed and summarized in the annual report required under section 3514), unless confidentiality is requested by the person making the request.''. SEC. 5307. EXPEDITING REVIEW OF AN AGENCY INFORMATION COLLECTION REQUEST WITH A REDUCED BURDEN. Section 3507 of title 44, United States Code (as amended by section 5304(b) of this title) is further amended by adding at the end thereof the following new subsection: ``(k) Upon request by the head of an agency, the Director shall approve a proposed change to an existing information collection request (unless such proposed change is subject to subsection (i)) within 30 days after the Director receives the proposed change. The information collection request shall thereafter remain in effect at least for the remainder of the period for which it was previously approved by the Director, if-- ``(1) the information collection request has a current control number; and ``(2) the Director determines that the revision-- ``(A) reduces the burden resulting from the information collection request; and ``(B) does not substantially change the information collection request.''. Subtitle D--Enhancing Agency Responsibility for Sharing and Disseminating Public Information SEC. 5401. PRESCRIBING GOVERNMENTWIDE STANDARDS FOR SHARING AND DISSEMINATING PUBLIC INFORMATION. Section 3504(h) of title 44, United States Code, is amended to read as follows: ``(h) The functions of the Director related to agency dissemination and sharing of public information shall include-- ``(1) developing policies and practices for agency dissemination and sharing of public information consistent with the agency responsibilities under section 3506(g); and ``(2) developing policy guidelines that instruct Federal agencies on ways to fulfill agency responsibilities to disseminate and share ˙7Einformation that, to the extent appropriate and practicable-- ``(A) make information dissemination products available on timely, equitable and cost effective terms; ``(B) encourage a diversity of public and private information dissemination products; ``(C) avoid establishing, or permitting others to establish, exclusive, restricted, or other distribution arrangements that interfere with the availability of information dissemination products on a timely and equitable basis; and ``(D) avoid establishing restrictions or regulations, including the charging of fees or royalties, on the reuse, resale, or redissemination of Federal information dissemination products by the public; and ``(E) set user charges for information dissemination products at a level sufficient to recover the cost of dissemination, except-- ``(i) where otherwise required by statute; ``(ii) where the information is collected, processed, and disseminated for the benefit of a specific identifiable group beyond the benefit to the general public; or ``(iii) where user charges are established at less than cost of dissemination because of a determination that higher charges would interfere with the proper performance of the agency's functions.''. SEC. 5402. AGENCY RESPONSIBILITIES FOR SHARING AND DISSEMINATING PUBLIC INFORMATION. Section 3506 of title 44, United States Code, is amended by adding at the end thereof the following new subsection: ``(g) The head of each agency shall, to the extent appropriate and practicable, and in conformance with the policy guidelines established under section 3504(h), establish and maintain a management system for the dissemination and sharing of information that-- ``(1) ensures that the public has timely, equitable and cost-effective access to the agency's information dissemination products; ``(2) disseminates and shares information in a manner that achieves the best balance between maximizing the usefulness of the information and minimizing the cost to the Government and the public; ``(3) takes advantage of all appropriate channels, Federal and non- Federal, including State and local governments, libraries and private sector entities, in discharging agency responsibilities for the dissemination and sharing of information; ``(4) considers whether an information dissemination product available from other Federal or non-Federal sources is equivalent to an agency information dissemination product and reasonably achieves the objectives of the agency; ``(5) establishes and maintains inventories of all agency information dissemination products in conformance with the requirements of section 3511; ``(6) establishes and maintains communications with members of the public and with State and local governments so that the agency shares information and otherwise creates information dissemination products that meet their respective needs; and ``(7) provides adequate notice when initiating, substantially modifying, or terminating significant information dissemination products.''. SEC. 5403. AGENCY INFORMATION INVENTORY/LOCATOR SYSTEM. (a) In General.--Section 3511 of title 44, United States Code, is amended to read as follows: ``˙1A3511. Inventory systems of information dissemination products ``(a) Each agency having significant information dissemination products shall establish and maintain a comprehensive inventory of such products, which shall include, at a minimum, the title of each such product, an abstract of the contents of each product, the media in which each product is available, and the cost, if any, of each product, subject to any requirements promulgated pursuant to subsection (c). ``(b) The inventory created pursuant to subsection (a) shall be made available for public access by electronic means, and in such other media as are appropriate and practicable, at no charge to the public. ``(c) The Director, in consultation with the Secretary of Commerce, the Archivist of the United States, the Public Printer, and the Librarian of Congress, may establish a mechanism for developing technical standards and other minimum requirements for the agency inventory systems created under subsection (a).''. (b) Technical and Conforming Amendment.--The table of sections for chapter 35 of title 44, United States Code, is amended by amending the item relating to section 3511 to read as follows: ``3511. Inventory systems of information dissemination products.''. Subtitle E--Additional Government Information Management Responsibility SEC. 5501. STRENGTHENING THE STATISTICAL POLICY AND COORDINATION FUNCTIONS OF THE DIRECTOR. Section 3504(d) of title 44, United States Code, is amended to read as follows: ``(d)(1) The statistical policy and coordination functions of the Director shall include-- ``(A) coordinating and providing leadership for development of the Federal statistical system; ``(B) developing and periodically reviewing and, as necessary, revising long-range plans for the improved coordination and performance of the statistical activities and programs of the Federal Government; ``(C) ensuring the integrity, objectivity, impartiality and confidentiality of the Federal statistical system; ``(D) reviewing budget proposals of agencies to ensure that the proposals are consistent with such long-range plans and developing a summary and analysis of the budget submitted by the President to the Congress for each fiscal year of the allocation for all statistical activities; ``(E) coordinating, through the review of budget proposals and as otherwise provided under this chapter, the functions of the Federal Government with respect to gathering, interpreting and sharing statistics and statistical information; ``(F) developing and implementing governmentwide policies, principles, standards and guidelines concerning statistical collection procedures and methods, statistical data classification, statistical information presentation and sharing, and such statistical data sources as may be required for the administration of Federal programs; ``(G) evaluating statistical program performance and agency compliance with governmentwide policies, principles, standards and guidelines; ``(H) promoting the timely release by agencies of statistical data to the public; ``(I) coordinating the participation of the United States in international statistical activities; ``(J) preparing an annual report to submit to the Congress on the statistical policy and coordination function; ``(K) integrating the functions described under this paragraph with the other information resources management functions specified under this chapter; and ``(L) appointing a chief statistician who is a trained and experienced professional to carry out the functions described under this paragraph. ``(2) The Director shall establish an interagency working group on statistical policy, consisting of the heads of the agencies with major statistical programs, headed by the chief statistician to coordinate agency activities in carrying out the functions under paragraph (1). ``(3) The Director shall provide opportunities for long-term training in the statistical policy functions of the chief statistician to employees of the Federal Government. Each trainee shall be selected at the discretion of the Director based on agency requests and shall serve for at least 6 months and no more than 1 year. All costs of the training are to be paid by the agency requesting training.''. SEC. 5502. USE OF ELECTRONIC INFORMATION COLLECTION AND DISSEMINATION TECHNIQUES TO REDUCE BURDEN. Section 3504(g)(1) of title 44, United States Code, is amended-- (1) by inserting ``development and'' after ``overseeing the''; and (2) by inserting ``(including standards that improve the ability of agencies to use technology to reduce burden)'' after ``establishment of standards''. SEC. 5503. AGENCY IMPLEMENTATION. Section 3514(a) of title 44, United States Code, is amended-- (1) in paragraph (9)(C) by striking out ``and'' at the end thereof; (2) in paragraph (10)(C) by striking out the period and inserting in lieu thereof a semicolon; and (3) by adding at the end thereof the following new paragraphs: ``(11) a listing of any increase in the burden imposed on the public during the year covered by the report resulting from a collection of information conducted or sponsored by or for an agency, which was imposed by such agency-- ``(A) as specifically mandated by the provision of a statute; or ``(B) as necessary to implement a statutory requirement, which requirement shall be identified with particularity; and ``(12) a description of each such agency's efforts in implementing, and plans to implement, the applicable policies, standards and guidelines with respect to the functions under this chapter; and ``(13) a strategic information resources management plan for the Federal Government, developed in consultation with the Administrator of General Services, the Secretary of Commerce, and the Archivist of the United States, that includes an analysis of cross-cutting issues of governmentwide importance.''. SEC. 5504. AUTOMATIC DATA PROCESSING EQUIPMENT PLAN. Section 3504(g) of title 44, United States Code, is amended-- (1) by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively; and (2) by inserting after paragraph (2) the following new paragraph: ``(3) developing and annually revising, in consultation with the Administrator of General Services, a 5-year plan for meeting the automatic data processing equipment (including telecommunications) and other information technology needs of the Federal Government in accordance with the requirements of sections 110 and 111 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 757 and 759) and the purposes of this chapter;''. SEC. 5505. TECHNICAL AND CONFORMING AMENDMENTS. (a) Definitions.--Section 3502(10) of title 44, United States Code, is amended by striking out ``the Federal Housing Finance Board'' and inserting in lieu thereof ``Federal Housing Finance Board''. (b) Review Periods.--Section 3507(g)(1) of title 44, United States Code, is amended to read as follows: ``(1) is needed prior to the expiration of the time periods for public notice and review by the Director pursuant to the requirements of this chapter,''. (c) Director Review.--Section 3513(a) of title 44, United States Code, is amended in the first sentence by inserting ``resources'' after ``information''. (d) Responsiveness.--Section 3514(a) of title 44, United States Code, is amended-- (1) in paragraph (9)(A) by inserting ``and'' at the end thereof; (2) in paragraph (9)(B) by striking out the semicolon and inserting a period; and (3) by striking out paragraph (9)(C). Subtitle F--Effective Dates SEC. 5601. EFFECTIVE DATES. (a) In General.--Except as provided in subsection (b), the provisions of this title shall become effective 120 days after the date of the enactment of this Act. (b) In Particular.--section 5101 and this section shall become effective upon the date of the enactment of this Act. TITLE VI--STRENGTHENING REGULATORY FLEXIBILITY SEC. 6001. JUDICIAL REVIEW. (a) In General.--Section 611 of title 5, United States Code, is repealed. (b) Conforming Amendment.--The table of sections at the beginning of chapter 6 of title 5, United States Code, is amended by striking the item relating to section 611. SEC. 6002. CONSIDERATION OF DIRECT AND INDIRECT EFFECTS OF RULES. (a) In General.--Title 5, United States Code, is amended by inserting after section 610 the following new section: ``1A611. Consideration of direct and indirect effects of rules ``In determining under this chapter whether or not a rule is likely to have a significant impact on a substantial number of small entities, an agency shall consider both the direct and indirect effects of the rule.''. (b) Conforming Amendment.--The table of sections at the beginning of chapter 6 of title 5, United States Code, is amended by inserting after the item relating to section 610 the following: ``611. Consideration of direct and indirect effects of rules.''. SEC. 6003. RULES OPPOSED BY SBA CHIEF COUNSEL FOR ADVOCACY. (a) In General.--Section 612 of title 5, United States Code, is amended by adding at the end the following new subsection: ``(d) Statement of Opposition.-- ``(1) Transmittal of proposed rules and initial regulatory flexibility analysis to sba chief counsel for advocacy.--On or before the 30th day preceding the date of publication by an agency of general notice of proposed rulemaking for a rule, the agency shall transmit to the Chief Counsel for Advocacy of the Small Business Administration-- ``(A) a copy of the proposed rule; and ``(B)(i) a copy of the initial regulatory flexibility analysis for the rule if required under section 603; or ``(ii) a determination by the agency that an initial regulatory flexibility analysis is not required for the proposed rule under section 603 and an explanation for the determination. ``(2) Statement of opposition.--On or before the 15th day following receipt of a proposed rule and initial regulatory flexibility analysis from an agency under paragraph (1), the Chief Counsel for Advocacy may transmit to the agency a written statement of opposition of the proposed rule. ``(3) Response.--If the Chief Counsel for Advocacy transmits to an agency a statement of opposition to a proposed rule in accordance with paragraph (2), the agency shall publish the statement, together with the response of the agency to the statement, in the Federal Register at the time of publication of general notice of proposed rulemaking for the rule.''. (b) Conforming Amendment.--Section 603(a) of title 5, United States Code, is amended by inserting ``in accordance with section 612(d)'' before the period at the end of the last sentence. SEC. 6004. SENSE OF CONGRESS REGARDING SBA CHIEF COUNSEL FOR ADVOCACY. It is the sense of Congress that the Chief Counsel for Advocacy of the Small Business Administration should be permitted to appear as amicus curiae in any action or case brought in a court of the United States for the purpose of reviewing a rule. TITLE VII--REGULATORY IMPACT ANALYSES SEC. 7001. SHORT TITLE. This title may be cited as the ``Administrative Procedure Reform Act of 1995''. SEC. 7002. RULE MAKING NOTICES FOR MAJOR RULES. Section 553 of title 5, United States Code, is amended by adding at the end the following: ``(f)(1)(A) The head of an agency shall publish in the Federal Register, at least 90 days before the date of publication of general notice under subsection (b) for a proposed major rule, a notice of intent to engage in rule making. ``(B) A notice under subparagraph (A) for a proposed major rule shall include, to the extent possible, the information required to be included in a Regulatory Impact Analysis for the rule under section 7004(c) (1), (2), and (8) of the Administrative Procedure Reform Act of 1995. ``(2) The head of an agency shall include in a general notice under subsection (b) for a major rule proposed by the agency-- ``(A) a final Regulatory Impact Analysis for the rule prepared in accordance with section 7004 of the Administrative Procedure Reform Act of 1995; and ``(B) clear delineation of all changes in the information included in the final Regulatory Impact Analysis under section 7004(c)(1) and (2) of the Administrative Procedure Reform Act of 1995 from any such information that was included in the notice for the rule under paragraph (1)(B) of this subsection. ``(3) In this subsection, the term `major rule' has the meaning given that term in section 7004(b) of the Administrative Procedure Reform Act of 1995.''. SEC. 7003. HEARING REQUIREMENT FOR PROPOSED RULES; EXTENSION OF COMMENT PERIOD. (a) Hearing Requirement.--Section 553 of title 5, United States Code, is further amended-- (1) in subsection (b), in the matter following paragraph (3), by inserting ``(except subsection (g))'' after ``this subsection''; and (2) by adding after subsection (f) (as added by section 7002 of this title) the following: ``(g) If more than 100 interested persons acting individually submit comments to an agency regarding any rule proposed by the agency, the agency shall hold a public hearing on the proposed rule.''. (b) Extension of Comment Period.--Section 553 of title 5, United States Code, is further amended by adding after subsection (g) (as added by subsection (a)(2) of this section) the following: ``(h) If during the 30-day period beginning on the date of publication of notice under subsection (f)(1)(A) for a proposed major rule, or if during the 30-day period beginning on the date of publication or service of notice required by subsection (b) for a proposed rule, more than 100 persons individually contact the agency to request an extension of the period for making submissions under subsection (c) pursuant to the notice, the agency-- ``(1) shall provide an additional 30-day period for making those submissions; and ``(2) may not adopt the rule until after that additional period.''. (c) Response to Comments.--Section 553(c) of title 5, United States Code, is amended-- (1) by inserting ``(1)'' after ``(c)''; and (2) by adding at the end the following: ``(2) The head of an agency shall publish in the Federal Register with each rule published under section 552(a)(1)(D) of this title, responses to the substance of all comments received by the agency regarding the rule.''. SEC. 7004. REGULATORY IMPACT ANALYSIS. (a) Application of Executive Order as Statutory Requirement.--Except as otherwise provided in this section, Executive Order 12291 (relating to Federal regulation requirements and regulatory impact analysis), as in effect on September 29, 1993, shall apply to each agency in accordance with the provisions of the Order. (b) Definition of Major Rule in Order.--Notwithstanding section 1(b) of the Order, for purposes of subsection (a) of this section, the term ``major rule'' means any proposed regulatory action-- (1) which affects more than 100 persons; or (2) compliance with which will require the expenditure of more than $1,000,000 by any person which is not a Federal agency. (c) Contents of Regulatory Impact Analyses.--In lieu of the information specified in section 3(d) of the Order, each preliminary and final Regulatory Impact Analysis required under section 3 of the Order for a rule shall contain the following: (1) An explanation of the necessity, appropriateness and reasonableness of the rule. (2) A description of the current condition that the rule will address and how that condition will be affected by the rule. (3) A statement that the rule does not conflict with nor duplicate any other rule, or an explanation of why the conflict or duplication exists. (4) A statement of whether the rule is in accord with or in conflict with any legal precedent. (5) A statement of the factual, scientific, or technical basis for the agency's determination that the rule will accomplish its intended purpose. (6) A statement that describes and, to the extent practicable, quantifies the risks to human health or the environment to be addressed by the rule. (7) A demonstration that the rule provides the least costly or least intrusive approach for meeting its intended purpose. (8) A description of any alternative approaches considered by the agency or suggested by interested persons and the reasons for their rejection. (9) An estimate of the nature and number of persons to be regulated or affected by the rule. (10) An estimate of the economic costs of the rule, including those incurred by persons in complying with the rule. (11) An evaluation of the costs versus the benefits derived from the rule, including evaluation of how those benefits outweigh the cost. (12) Whether the rule will require onsite inspections. (13) An estimate of the paperwork burden on persons regulated or affected by the rule, such as the number of forms, impact statements, surveys, and other documents required to be completed by the person under the rule. (14) Whether persons will be required by the rule to maintain any records which will be subject to inspection. (15) Whether persons will be required by the rule to obtain licenses, permits, or other certifications, and the fees and fines associated therewith. (16) Whether persons will be required by the rule to appear before the agency. (17) Whether persons will be required by the rule to disclose information on materials or processes, including trade secrets. (18) Whether persons will be required by the rule to report any particular type of incidents. (19) Whether persons will be required by the rule to adhere to design or performance standards. (20) Whether persons may need to retain or utilize any lawyer, accountant, engineer, or other professional consultant in order to comply with the regulations. (21) An estimate of the costs to the agency for implementation and enforcement of the regulations. (22) Whether the agency can be reasonably expected to implement the rule with the current level of appropriations. (23) A statement that any person may submit comments on the Regulatory Impact Analysis to the Administrator of the Office of Information and Regulatory Affairs. (d) Definitions.--In this section-- (1) the term ``Order'' means Executive Order 12291, as in effect on September 29, 1993; and (2) each of the terms ``agency'', ``regulation'', and ``rule'' has the meaning given that term in section 1 of the Order, except that the term ``agency'' includes an independent agency. SEC. 7005. ADDITIONAL RESPONSIBILITIES OF DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET. An agency may not adopt a major rule unless the final Regulatory Impact Analysis for the rule is approved in writing by the Director of the Office of Management and Budget or by an individual designated by the Director for that purpose. SEC. 7006. STANDARD OF CLARITY. The head of an agency may not publish in the Federal Register any proposed major rule, summary of a proposed major rule, or Regulatory Impact Analysis unless the Director of the Office of Management and Budget certifies that the proposed major rule, summary, or Analysis-- (1) is written in a reasonably simple and understandable manner and is easily readable; (2) is written to provide adequate notice of the content of the rule, summary, or Analysis to affected persons and interested persons that have some subject matter expertise; (3) conforms to commonly accepted principles of grammar; (4) contains only sentences that are as short as practical and organized in a sensible manner; and (5) to the extent practicable, does not contain any double negatives, confusing cross references, convoluted phrasing, unreasonably complex language, or term of art or word with multiple meanings that may be misinterpreted and is not defined in the rule, summary, or analysis, respectively. SEC. 7007. REPORT BY OIRA. The Administrator of the Office of Information and Regulatory Affairs shall submit a report to the Congress no later than 12 months after the date of the enactment of this Act containing an analysis of rule making procedures of Federal agencies and an analysis of the impact of those rule making procedures on the regulated public and regulatory process. SEC. 7008. CIVIL ACTION. Whoever is adversely affected by any conduct in violation of this title may in a civil action obtain appropriate relief. The court may award a prevailing plaintiff in an action under this section a reasonable attorney's fees as a part of the costs. SEC. 7009. DEFINITIONS. For purposes of this title-- (1) except as provided in section 7004(d)(2), each of the terms ``agency'', ``rule'', and ``rule making'' has the meaning given that term in section 551 of title 5, United States Code; and (2) the term ``major rule'' has the meaning given that term in section 7004(b). TITLE VIII--PROTECTION AGAINST FEDERAL REGULATORY ABUSE Subtitle A--Citizens' Regulatory Bill of Rights SEC. 8101. CITIZENS' REGULATORY BILL OF RIGHTS. (a) In General.--Except as provided in subsection (c), each person that is the target of a Federal investigative or enforcement action shall, upon the initiation of an inspection, investigation, or other official proceeding directed against that person, have the right-- (1) to remain silent; (2) to be advised as to whether the person has a right to a warrant; (3) to be warned that statements can be used against them; (4) to have an attorney or accountant present; (5) to be informed as the the scope and purpose of the agency action; (6) to be present at the inspection, investigation, or proceeding; (7) to be reimbursed for unreasonable damages; (8) to be free of unreasonable seizures of property or assets; and (9) to receive attorneys fees and other expenses from the Government when the Government commences a frivolous civil action against such person, except that nothing in this paragraph shall be construed to affect the Equal Access to Justice Act. (b) Agency Rules.--Each agency or other authority of the Federal Government with respect to which this section applies shall make appropriate rules within 90 days after the date of the enactment of this Act to implement this section in the context of that agency's functions. (c) Limitation on Application of Requirements.--A requirement of this section shall not apply if compliance with the requirement would substantially delay responding to an imminent danger to person or property. Subtitle B--Private Sector Whistleblowers' Protection SEC. 8201. SHORT TITLE. This subtitle may be cited as the ``Private Sector Whistleblowers' Protection Act of 1995''. SEC. 8202. PURPOSE. The Federal regulatory system should be implemented consistent with the principle that any person subject to Government regulation should be protected against reprisal for disclosing information that the person believes is indicative of-- (1) violation or inconsistent application of any law, rule, regulation, policy, or internal standard; (2) arbitrary action or other abuse of authority; (3) mismanagement; (4) waste or misallocation of resources; (5) inconsistent, discriminatory or disproportionate enforcement proceedings; (6) endangerment of public health or safety; (7) personal favoritism; and (8) coercion for partisan political purposes; by any agency or its employees. SEC. 8203. COVERAGE. This subtitle shall apply to: (1) Any agency of the Federal Government as defined in section 551 of title 5, United States Code. (2) Any agency of a State government that exercises authority under Federal law, or that exercises authority under State law establishing a program approved by a Federal agency as a substitute for or supplement to a program established by Federal law. SEC. 8204. PROHIBITED REGULATORY PRACTICES. (a) Defined.--For purposes of this subtitle, ``prohibited regulatory practice'' means any action described in subsection (b)(i), (ii), or (iii) of this section. (b) Prohibition.--(1) No employee of an Agency who has authority-- (A) to take or direct other employees to take, (B) to recommend, or (C) to approve, any regulatory action shall-- (i) take or fail to take, or threaten to take or fail to take, (ii) recommend or direct that others take or fail to take, or threaten to so recommend or direct, or (iii) approve the taking or failing to take, or threaten to so approve, such regulatory action because of any disclosure by a person subject to the action, or by any other person, of information that the person believed indicative of-- (I) violation or inconsistent application of any law, rule, regulation, policy, or internal standard; (II) arbitrary action or other abuse of authority; (III) mismanagement; (IV) waste or misallocation of resources; (V) inconsistent, discriminatory or disproportionate enforcement; (VI) endangerment of public health or safety; (VII personal favoritism; or (VIII) coercion for partisan political purposes; by any agency or its employees. (2) An action shall be deemed to have been taken, not taken, approved, or recommended because of the disclosure of information within the meaning of paragraph (1) if the disclosure of information was a contributing factor to the decision to take, not to take, to approve, or to recommend. SEC. 8205. PROHIBITED REGULATORY PRACTICE AS A DEFENSE TO AGENCY ACTION. (a) In General.--In any administrative or judicial action or proceeding, formal or informal, by an agency to create, apply or enforce any obligation, duty or liability under any law, rule or regulation against any person, the person may assert as a defense that the agency or one or more employees of the agency have engaged in a prohibited regulatory practice with respect to the person or to a related entity in connection with the action or proceeding. (b) Compliance.--If the existence of a prohibited regulatory practice is established, the person may be required to comply with the obligation, duty or liability to the extent compliance is required of and enforced against other persons similarly situated, but no penalty, fine, damages, costs or other obligation except compliance shall be imposed on the person. SEC. 8206. ENFORCEMENT. (a) Civil Penalty.--Any agency, and any employee of an agency, engaging in a prohibited regulatory practice may be assessed a civil penalty of not more than $25,000 for each such practice. In the case of a continuing prohibited regulatory practice, each day that the practice continues shall be deemed a separate practice. (b) Procedures.--The President shall, by regulation, establish procedures providing for the administrative enforcement of the requirements of subsection (a) of this section. SEC. 8207. CITIZEN SUITS. (a) Commencement.--Any person injured or threatened by a prohibited regulatory practice may commence a civil action on his own behalf against any person or agency alleged to have engaged in or threatened to engage in such practice. (b) Jurisdiction and Venue.--Any action under subsection (a) of this section shall be brought in the district court for any district in which the alleged prohibited regulatory practice occurred or in which the alleged injury occurred. The district court shall have jurisdiction, without regard to the amount in controversy or the citizenship of the parties, to-- (1) restrain any agency or person who has engaged or is engaging in any prohibited regulatory practice; (2) order the cancellation or remission of any penalty, fine, damages, or other monetary assessment that resulted from a prohibited regulatory practice; (3) order the rescission of any settlement that resulted from a prohibited regulatory practice; (4) order the issuance of any permit or license that has been denied or delayed as a result of a prohibited regulatory practice; (5) order the agency and/or the employee engaging in a prohibited regulatory practice to pay to the injured person such damages as may be necessary to compensate the person for any harm resulting from the practice, including damages for-- (A) injury to, deterioration of, or destruction of real or personal property; (B) loss of profits from idle or underutilized resources, and from business forgone; (C) costs incurred, including costs of compliance where appropriate; (D) loss in value of a business; (E) reasonable legal, consulting and expert witness fees; or (F) payments to third parties; (6) order the payment of punitive damages, in an amount not to exceed $25,000 for each such prohibited regulatory practice, provided that, in the case of a continuing prohibited regulatory practice, each day that the practice continues shall be deemed a separate practice. SEC. 8208. OFFICE OF THE SPECIAL COUNSEL. (a) Request for Investigation.--Any person who has reason to believe that any employee of any agency has engaged in a prohibited regulatory practice may request the Special Counsel established by section 1211 of title 5, United States Code, to investigate. (b) Powers.--The Special Counsel shall have the same power to investigate prohibited regulatory practices that it has to investigate prohibited personnel practices pursuant to section 1212 of title 5, United States Code. TITLE IX--PRIVATE PROPERTY RIGHTS PROTECTIONS AND COMPENSATION SEC. 9001. COMPENSATION FOR TAKING OF PRIVATE PROPERTY. (a) Eligibility.-- (1) In general.--A private property owner is entitled to receive compensation in accordance with this section for any reduction in the value of property owned by the private property owner, that-- (A) is a consequence of a limitation on an otherwise lawful use of the property imposed by a final agency action; and (B) is measurable and not negligible. (2) Reductions deemed not negligible.--For purposes of paragraph (1)(B), a reduction in the value of property of 10 percent or more is deemed not negligible. (b) Request for Compensation.--Within 90 days after receipt of notice of a final agency action with respect to which compensation is required under subsection (a), a private property owner may submit to the head of the agency a request in writing for compensation under this section. (c) Agency Offer.--Within 180 days after the receipt of a request for compensation submitted in accordance with subsection (b) with respect to an agency action, the head of the agency shall stay the agency action and provide to the private property owner an offer to compensate the private property owner for the difference between-- (1) the fair market value of the property determined based on the value of the property if the agency action were not implemented; minus (2) the fair market value of the property determined based on the value of the property if the agency action were implemented. (d) Private Property Owners' Response.--A private property owner shall have 60 days after the date of receipt of an offer under subsection (c) to accept or to reject the offer. (e) Arbitration.--If a private property owner rejects the offer under subsection (c), the private property owner may submit the matter for arbitration to an arbitrator appointed by the head of the agency from a list of arbitrators submitted by the American Arbitration Association. The arbitrator shall determine the amount of compensation to which the property owner is entitled under this section, in accordance with subsection (c) (1) and (2). The arbitration shall be conducted in accordance with the real estate valuation arbitration rules of that association. For purposes of this section, an arbitration is binding on the head of an agency and the private property owner as to the amount, if any, of compensation owed to the private property owner under this section. (f) Payment.--The head of an agency shall pay a private property owner any compensation required under the terms of an offer of the agency head that is accepted by the private property owner in accordance with subsection (d), or under a decision of an arbiter under subsection (e), by not later than 60 days after the date of the acceptance or the date of the issuance of the decision, respectively. SEC. 9002. DEFINITIONS. In this title: (1) The term ``private property owner'' means a non-Federal person (other than an officer, employee, agent, department, or instrumentality of a State, municipality, or political subdivision of a State, or a State, municipality, or subdivision of a State) that-- (A) owns property referred to in paragraph (2) (A) or (B); or (B) holds property referred to in paragraph (2)(C). (2) The term ``property'' means-- (A) land; (B) any interest in land; and (C) any proprietary water right. (3) The term ``agency action'' has the meaning given that term in section 551(13) of title 5, United States Code. TITLE X--FEDERAL MANDATE ACCOUNTABILITY AND REFORM SEC. 10001. SHORT TITLE. This title may be cited as the ``Federal Mandate Accountability and Reform Act of 1995''. SEC. 10002. DEFINITIONS. For purposes of this title-- (1) Federal intergovernmental mandate defined.--The term ``Federal intergovernmental mandate'' means-- (A) any provision in a bill or joint resolution before Congress or in a proposed or final Federal regulation that-- (i) would impose a duty that is enforceable by administrative, civil, or criminal penalty or by injunction (other than a condition of Federal assistance or a duty arising from participation in a voluntary Federal program, except as stated in subparagraph (B)), upon States, local governments, or tribal governments, or (ii) would reduce or eliminate the amount of authorization of Federal financial assistance that will be provided to States, local governments, or tribal governments for the purpose of complying with any such duty; or (B) any provision in a bill or joint resolution before Congress or in a proposed or final Federal 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 (as that term is defined in section 3(9) of the Congressional Budget Act of 1974 (2 U.S.C. 622(9))), if-- (i)(I) the bill or joint resolution or regulation would increase the stringency of conditions of assistance to States, local governments, or tribal governments under the program, or (II) would place caps upon, or 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 bill or joint resolution or implementing regulation. (2) Federal private sector mandate defined.--The term ``Federal private sector mandate'' means any provision in a bill or joint resolution before Congress that (A) would impose a duty that is enforceable by administrative, civil, or criminal penalty or by injunction (other than a condition of Federal assistance or a duty arising from participation in a voluntary Federal program) upon the private sector, or (B) would reduce or eliminate the amount of authorization of Federal financial assistance that will be provided to the private sector for the purpose of complying with any such duty. (3) Intergovernmental direct costs and private sector direct costs defined.-- (A) The term ``intergovernmental direct costs'' means the aggregate estimated amounts that all States, local governments, and tribal governments will be required to spend in order to comply with a Federal intergovernmental mandate, or, in the case of a bill or joint resolution referred to in paragraph (1)(A)(ii), the amount of Federal financial assistance eliminated or reduced. (B) The term ``private sector direct costs'' means the aggregate amounts that the private sector will be required to spend in order to comply with a Federal private sector mandate. (C) Each of the terms ``intergovernmental direct costs'' and ``private sector direct costs'' shall not include amounts that it is estimated that the States, local governments, tribal governments, and the private sector would spend-- (i) to comply with or carry out all applicable Federal, State, local, and tribal laws and regulations adopted before the adoption of the Federal mandate; or (ii) to continue to carry out State, local governmental, and tribal governmental programs, in the case of governments, or their business or other activities, in the case of the private sector established at the time of adoption of the Federal mandate; (D) Each of the terms ``intergovernmental direct costs'' and ``private sector direct costs'' shall not include expenditures to the extent that they will be offset by any direct savings to be enjoyed by the States, local governments, tribal governments, and 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. (E) Intergovernmental direct costs and private sector direct costs shall be determined 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. (4) Amount of federal financial assistance defined.--The amount of ``Federal financial assistance'' means-- (A) the amount of budget authority (as defined in section 3(2)(A) of the Congressional Budget Act of 1974 (2 U.S.C. 622(2)(A))) of any Federal grant assistance, and (B) the subsidy amount (as defined as ``cost'' in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(a)) of any Federal program providing loan guarantees or direct loans. (5) Other definitions.-- (A) Agency defined.--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. (B) Director defined.--The term ``Director'' means the Director of the Congressional Budget Office. (C) Local government defined.--The term ``local government'' has the same meaning as in section 6501(6) of title 31, United States Code. (D) Regulation or rule defined.--The term ``regulation'' or ``rule'' has the meaning of ``rule'' as defined in section 601(2) of title 5, United States Code. (E) Small government defined.--The term ``small government'' means any small governmental jurisdiction as defined in section 601(5) of title 5, United States Code, and any tribal government. (F) State defined.--The term ``State'' has the same meaning as in section 6501(9) of title 31, United States Code. (G) Private sector defined.--The term ``private sector'' means individuals, partnerships, associations, corporations, business trusts, or legal representatives, organized groups of individuals, and educational, and other nonprofit institutions. (H) Federal mandate defined.--For the purposes of subtitle A of this title, the term ``Federal mandate'' means a Federal intergovernmental mandate or a Federal private sector mandate, as defined in this section. For the purposes of subtitle B of this title, the term ``Federal mandate'' means a Federal intergovernmental mandate, as defined in this section. SEC. 10003. EXCLUSIONS. Anything in this title to the contrary notwithstanding, this title shall not apply to-- (1) any provision in a bill or joint resolution before Congress and any provision in a proposed or final Federal regulation that-- (A) enforces Constitutional rights of individuals; (B) establishes or enforces any statutory rights that prohibit discrimination on the basis of race, religion, gender, national origin, or handicapped or disability status; (C) requires compliance with accounting and auditing procedures with respect to grants or other money or property provided by the United States Government; (D) provides for emergency assistance or relief at the request of any State, local government, or tribal government or any official of any of them; or (E) is necessary for the national security or the ratification or implementation of international treaty obligations; or (2) any legislation that the President designates as emergency legislation and that the Congress so designates in statute. Subtitle A--Legislative Accountability and Reform SEC. 10101. DUTIES OF CONGRESSIONAL COMMITTEES. (a) Committee Report.-- (1) Regarding federal mandates.--When a committee of authorization of the House of Representatives or the Senate reports a bill or joint resolution of public character that includes any Federal mandate, the committee shall issue a report to accompany the bill or joint resolution containing-- (A) an analysis, prepared in consultation with the Director, including an identification and description of any Federal mandates in the bill or joint resolution, including the expected direct costs to States, local governments, tribal governments, and the private sector required to comply with the Federal mandate; (B)(i) a statement of the amount, if any, of increase in authorization of appropriations under existing Federal financial assistance programs, or of authorization of appropriations 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; (C) a qualitative, and if possible, a quantitative assessment of costs and benefits anticipated from the Federal intergovernmental mandates (such as, but not limited to, the enhancement of health and safety and the protection of the natural environment); (D) any existing sources of Federal assistance in addition to those identified in subparagraph (B)(i) that may assist States, local governments, and tribal governments in meeting the direct costs of the Federal intergovernmental mandates; and (E) an identification of one or more of the following: reductions in authorization of existing appropriations, a reduction in direct spending, or an increase in receipts (consistent with the amount identified in subparagraph (B)(i)). (2) Regarding preemption.--When a committee of authorization of the House of Representatives or the Senate 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 statement of whether or not the bill or joint resolution is intended to preempt any State, local, or tribal law, and if so, an explanation of the reasons for enacting such preemption. (b) Submission of Bills to the Director.--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 shall promptly provide the bill or joint resolution to the Director and shall identify to the Director any Federal mandates contained in the bill or resolution. (c) Publication of Statement From the Director.--Upon receiving a statement (including any supplemental statement) from the Director pursuant to section 10102(c), a committee of the House of Representatives or the Senate shall publish the statement in the committee report accompanying the bill or joint resolution to which the statement relates if the statement is available soon enough to be included in the printed report. If the 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. 10102. DUTIES OF THE DIRECTOR. (a) Studies.-- (1) As early as practicable in each new Congress, 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 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 budgetary or financial impact, shall request that the Director initiate a study of the proposed legislation in order to develop information that may be useful in analyzing the costs of any Federal mandates and of any unfunded Federal intergovernmental mandates that may be included in the proposed legislation. (2) In conducting the study under paragraph (1), the Director shall-- (A) solicit and consider information or comments from elected officials (including their designated representatives) of States, local governments, and tribal governments, designated representatives of the private sector, and such other persons as may provide helpful information or comments, (B) consider establishing advisory panels of elected officials (including their designated representatives) of States, local governments, and tribal governments, designated representatives of the private sector, and other persons if the Director determines, in his discretion, that such advisory panels would be helpful in performing the Director's responsibilities under this section, and (C) consult with the relevant committees of the House of Representatives and of the Senate. (b) Consultation.--The Director shall, at the request of any committee of the House of Representatives or of the Senate, consult with and assist such committee in analyzing the budgetary impact of any proposed legislation that may have a significant budgetary impact on State, local, or tribal governments, or the financial impact of any proposed legislation that may have a significant financial impact on the private sector. (c) Statements on Nonappropriations Bills and Joint Resolutions.-- (1) Federal intergovernmental 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 of the Senate, the Director shall prepare and submit to the committee a statement as follows: (A) Intergovernmental direct costs below threshold.--If the Director estimates that the intergovernmental direct costs of all Federal intergovernmental mandates in the bill or joint resolution will not equal or exceed $50,000,000 (adjusted annually for inflation by the Consumer Price Index) in the fiscal year in which it (as well as any necessary implementing regulation) is to be effective or in any of the 4 fiscal years following such fiscal year, the Director shall so state and shall briefly explain the basis of the estimate. (B) Intergovernmental direct costs above threshold.--If the Director estimates that the intergovernmental direct costs of all Federal intergovernmental mandates in the bill or joint resolution will equal or exceed $50,000,000 (adjusted annually for inflation by the Consumer Price Index) in the fiscal year in which it (as well as any necessary implementing regulation) is to be effective or in any of the 4 fiscal years following such fiscal year, the Director shall so state and shall briefly explain the basis of the estimate, and-- (i) shall include estimates (and shall briefly explain the basis of the estimates) of-- (I) the total amount of intergovernmental direct costs 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 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; (ii) shall also include estimates, if and to the extent that the Director determines that such estimates are reasonably feasible, of-- (I) future costs of Federal intergovernmental mandates to the extent that they significantly differ from or extend beyond the time period of the estimate referred to in the first clause of this subparagraph (B); and (II) any disproportionate budgetary effects of Federal intergovernmental mandates and of any Federal financial assistance in the bill or joint resolution upon any particular regions of the country or particular States, local governments, tribal governments, or urban or rural or other types of communities; and (iii) shall also state any amounts appropriated in the prior fiscal year to fund the activities subject to the Federal intergovernmental mandate. (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 of the Senate, the Director shall prepare and submit to the committee a statement as follows: (A) Private sector direct costs below threshold.--If the Director estimates that the direct private sector costs of all Federal private sector mandates in the bill or joint resolution will not equal or exceed $200,000,000 (adjusted annually for inflation by the Consumer Price Index) in the fiscal year in which it (as well as any necessary implementing regulation) is to be effective or in any of the 4 fiscal years following such fiscal year, the Director shall so state and shall briefly explain the basis of the estimate. (B) Private sector direct costs above threshold.--If the Director estimates that the private sector direct costs of all Federal private sector mandates in the bill or joint resolution will equal or exceed $200,000,000 (adjusted annually for inflation by the Consumer Price Index) in the fiscal year in which it (as well as any necessary implementing regulation) is to be effective or in any of the 4 fiscal years following such fiscal year, the Director shall so state and shall briefly explain the basis of the estimate, and-- (i) shall include estimates (and shall briefly explain the basis of the estimates) of-- (I) the total amount of private sector 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 and usable by the private sector for activities subject to the Federal private sector mandates; (ii) shall also include 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 they differ significantly from or extend beyond the time period of the estimate referred to in the first clause of this subparagraph; (II) any disproportionate financial effects of Federal private sector mandates and of any Federal financial assistance in the bill or joint resolution upon 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 on productivity, economic growth, full employment, creation of productive jobs, and international competitiveness of American goods and services; (iii) shall also state any amounts appropriated in the prior fiscal year to fund activities subject to the Federal private sector mandate. (3) Amended bills and joint resolutions; conference reports.--If the Director has prepared a statement that includes the determination described in paragraph (1)(B) for a bill or joint resolution, and if that 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 language 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. The requirements of section 10103 shall not apply to the publication of any supplemental statement prepared under this subsection. (d) Authorization of Appropriations.--There are authorized to be appropriated to the Congressional Budget Office to carry out the provisions of this title, and for no other purpose, $8,200,000 for fiscal year 1995, $8,600,000 for fiscal year 1996, $8,900,000 for fiscal year 1997, and $9,300,000 for fiscal year 1998. (e) Technical Amendment.--The State and Local Cost Estimate Act of 1981, Public Law 97˙09108, is hereby repealed. SEC. 10103. POINT OF ORDER. (a) In General in the House of Representatives or Senate.--It shall not be in order in the House of Representatives or Senate to consider any bill or joint resolution that is reported by any committee of authorization unless (based upon a ruling of the presiding Officer in the case of the Senate)-- (1) a committee has published a statement of the Director in accordance with section 10101(c) prior to such consideration; and (2) in the case of a bill or joint resolution containing Federal intergovernmental mandates, either-- (A) the intergovernmental direct costs of all Federal intergovernmental mandates in the bill or joint resolution are estimated not to equal or exceed $50,000,000 (adjusted annually for inflation by the Consumer Price Index) in the fiscal year in which it (as well as any necessary implementing regulation) is to be effective or in any of the 4 fiscal years following such fiscal year, or (B)(i) the 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 and usable by States, local governments, or tribal governments for activities subject to the Federal intergovernmental mandates is at least equal to the estimated amount of intergovernmental direct costs of the Federal intergovernmental mandates; and (ii) the committee of jurisdiction has identified in the bill or joint resolution one or more of the following: a reduction in authorization of existing appropriations, a reduction in direct spending, or an increase in receipts (consistent with the amount identified in clause (i). (b) Waiver.-- (1) In general.--Subsection (a) may be waived or suspended in the House of Representatives or Senate only by the affirmative vote of a majority of its Members voting. (2) Special rule 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 subsection (a) to a bill or joint resolution reported by a committee of authorization. (c) Amendment To Raise Authorization Level.--Notwithstanding the terms of subsection (a), it shall not be out of order pursuant to this section to consider a bill or joint to which an amendment is proposed and agreed to that would raise the amount of authorization of appropriations to a level sufficient to satisfy the requirements of subsections (a)(2)(B) and (a)(2)(C), nor shall it be out of order to consider such an amendment. SEC. 10104. 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 (as defined in section 10003(1) of the Federal Mandate Accountability and Reform Act of 1995) that does not meet the requirements of sections 10003(a)(1) and (2) of that Act, 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.''. (b) Committee Reports Regarding Roll Call Votes on Federal Mandates.-- Clause 2(l)(2) of rule XI of the Rules of the House of Representatives is amended by adding at the end the following: ``(C) With respect to each rollcall vote on an amendment regarding any Federal mandate (as defined in section 10003(1) of the Federal Mandate and Accountability and Reform Act of 1995), the total number of votes cast for, and the total number of votes cast against, that amendment and the name of each Member voting for and each Member voting against such amendment, and whether by proxy or in person, and the names of those members present but not voting, shall be included in the committee report.''. (c) Seven-Day Layover.--Clause 2(l)(6) of rule XI of the Rules of the House of Representatives is amended-- (1) by striking ``(6) A'' and by inserting inserting ``(6)(A) Except as provided by subdivision (B),'' (2) in its third sentence, by striking ``(A)'' and inserting ``(i)'' and by striking ``(B)'' and inserting ``(ii)''; and (3) by adding at the end the following: ``(B) A measure or matter reported by any committee that contains any Federal mandate (as defined in section 10003(1) of the Federal Mandate and Accountability and Reform Act of 1995) that does not meet the requirements of sections 10103(a)(1) and (2) of that Act shall not be considered in the House until the seventh calendar day, excluding Saturdays, Sundays, and legal holidays, on which the report of that committee upon the measure or matter has been available to the Members of the House.''. (d) Committee on Rules Reports on Waived Points of Order.--Clause 1 of rule XI of the Rules of the House of Representatives is amended by adding at the end the following: ``(e) By January 2 of each odd-numbered year, the Committee on Rules shall submit to the House a report identifying all waivers of points of order relating to Federal mandates (as defined in section 10003(1) of the Federal Mandate Accountability and Reform Act of 1995), including an explanation setting forth the following information respecting each such waiver: ``(1) The bill or joint resolution for which the waiver was granted. ``(2) The justification made by the committee requesting the waiver of the need for the waiver. ``(3) An explanation of why the Committee on Rules granted the waiver. ``(4) The economic impact of that bill or joint resolution on State, local, and tribal governments.''. SEC. 10105. EXERCISE OF RULEMAKING POWERS. The provisions of sections 10101, 10102, 10103, and 10104 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 any time, 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. 10106. EFFECTIVE DATE. This subtitle shall apply to bills and joint resolutions reported by a committee on or after October 1, 1995. Subtitle B--Regulatory Accountability and Reform SEC. 10201. REGULATORY PROCESS. (a) Each agency shall assess the effects of Federal regulations on States, local governments, and tribal governments, including specifically the availability of resources to carry out any mandates in those regulations, and seek to minimize those burdens that uniquely or significantly affect such governmental entities, consistent with achieving statutory and regulatory objectives. (b) Each agency shall develop an effective process to permit elected officials (including their designated representatives) and other representatives of States, local governments, and tribal governments to provide meaningful and timely input in the development of regulatory proposals containing significant Federal mandates. Such a process shall be consistent with all applicable laws. (c)(1) Before establishing any regulatory requirements that might significantly or uniquely affect small governments, agencies shall have developed a plan under which the agency shall-- (A) provide notice of the contemplated requirements to any potentially affected small governments, (B) seek the views of, and consult with, officials of affected small governments pursuant to subsection (b), and (C) inform, educate, and advise small governments on compliance with the requirements. (2) There are hereby 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. 10202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY ACTIONS. (a) In General.--Before promulgating any final rule that includes any Federal mandates upon States, local governments, or tribal governments that may result in the expenditures by States, local governments, or tribal governments, in the aggregate, of $100,000,000 or more (annually adjusted by the Consumer Price Index) in any one 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, and tribal governments of complying with the mandate, 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 such estimates are reasonably feasible, of-- (A) the costs of mandates in the regulation that will be borne in various future time periods; and (B) any disproportionate budgetary effects of the mandates upon any particular regions of the country or particular States, local governments, tribal governments, or rural or other types of communities; (3) a qualitative, and if possible, a quantative assessment of costs and benefits anticipated from the Federal mandate (such as, but not limited to, the enhancement of health and safety and the protection of the natural environment); and (4)(A) a description of the extent of the agency's prior consultation with elected representatives (including their designated representatives) of the affected States, local governments, and tribal governments and of other affected parties, (B) a summary of the comments and concerns that were presented by States, local governments, or tribal governments either orally or in writing to the agency, (C) a summary of the agency's evaluation of those comments and concerns, and (D) the agency's position supporting the need to issue the regulation containing the mandate (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 a part of any other statement or analysis, provided that the statement or analysis satisfies the provisions of subsection (a). SEC. 10203. ASSISTANCE TO THE CONGRESSIONAL BUDGET OFFICE. (a) The Director of the Office of Management and Budget shall collect from agencies the statements prepared under section 10202 and provide copies of them to the Director of the Congressional Budget Office promptly after promulgation of the general notice of proposed rulemaking or of the final rule for which the statement was prepared. (b) Each agency shall provide to the Director of the Congressional Budget Office such information and assistance as he may reasonably request to assist him in performing his responsibilities under this title. SEC. 10204. PILOT PROGRAM ON SMALL GOVERNMENT FLEXIBILITY. (a) 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) The pilot program shall focus on rules in effect or proposed rules, or a combination thereof. Subtitle C--Judicial Review SEC. 10301. JUDICIAL REVIEW. Any statement or report prepared under this title, any compliance or noncompliance with the provisions of this title, and any determination concerning the applicability of the provisions of this title shall not be subject to judicial review. The provisions of this title shall not create any right or benefit, substantive or procedural, enforceable by any person in any administrative or judicial action. No ruling or determination under this title shall be considered by any court in determining the intent of Congress or for any other purpose. Subtitle D--Baseline Study SEC. 10401. BASELINE STUDY OF COSTS AND BENEFITS. (a) No later than 6 months after the date of enactment of this Act, the Director of the Bureau of the Census, in consultation with the Director, shall begin a study to examine the measurement and definition issues involved in calculating the total costs and benefits to States, local governments, and tribal governments of compliance with Federal law. The study shall consider the feasibility of measuring indirect costs and benefits as well as direct costs and benefits of the Federal, State, local, and tribal relationship. The study shall consider how to measure both the direct and indirect benefits of Federal financial assistance and tax benefits to States, local governments, and tribal governments. (b) There are authorized to be appropriated to the Bureau of the Census to carry out the purposes of this subtitle, $1,000,000 for fiscal year 1995 and $1,000,000 for fiscal year 1996. Subtitle E--Limitation on Implementation of Federal Mandates; Review and Monitoring of Unfunded Federal Mandates and Implementation of Act SEC. 10501. SHORT TITLE. This subtitle may be cited as the ``Federal Mandate and Community Assistance Reform Act''. SEC. 10502. LIMITATION ON IMPLEMENTATION OF FEDERAL MANDATES. A Federal agency that is responsible for implementing, enforcing, or otherwise applying a Federal mandate shall apply the Federal mandate only to the extent that the head of the agency determines that State and local governments to which the Federal mandate would apply have been provided Federal resources equivalent to the intergovernmental direct costs of the Federal mandate. SEC. 10503. REPORT ON UNFUNDED FEDERAL MANDATES BY ADVISORY COMMISSION ON INTERGOVERNMENTAL RELATIONS. (a) In General.--The Advisory Commission on Intergovernmental Relations shall in accordance with this section-- (1) investigate and review on a regular basis the role of unfunded Federal mandates in intergovernmental relations and their impact on local, State, and Federal government objectives and responsibilities; and (2) study and make recommendations to the President and the Congress regarding-- (A) a process by which State and local governments can participate in meeting national domestic objectives without the burden created by unfunded Federal mandates, including recommendations for funding the Federal mandates imposed after the date of the enactment of this Act on State and local governments; (B) allowing flexibility for State and local governments in complying with specific unfunded Federal mandates for which terms of compliance are unnecessarily rigid or complex; (C) reconciling any 2 or more unfunded Federal mandates which impose contradictory or inconsistent requirements; (D) terminating unfunded Federal mandates which are duplicative, obsolete, or lacking in practical utility; (E) 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 and local governments, including recommendations for triggering such suspension; (F) 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 and local governments with those mandates; and (G) establishing common Federal definitions or standards to be used by State and local governments in complying with unfunded Federal mandates that use different definitions or standards for the same terms or principles. Each recommendation under paragraph (2) shall, to the extent practicable, identify the specific unfunded Federal mandate to which the recommendation applies. (b) Criteria.-- (1) In general.--The Advisory Commission shall establish criteria for making recommendations under subsection (a). (2) Issuance of proposed criteria.--The Advisory Commission shall issue proposed criteria under this subsection not later than 45 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 Advisory 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 Advisory Commission determines will aid the Advisory 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 Advisory Commission shall-- (A) prepare and publish a preliminary report on its activities under this subtitle, 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 Advisory Commission shall hold public hearings on the preliminary recommendations contained in the preliminary report of the Advisory 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 Advisory Commission shall submit to the Congress, including the ranking minority party member of each of the Committee on Government Operations of the House of Representatives and the Committee on Governmental Affairs of the Senate, and the President a final report on the findings, conclusions, and recommendations of the Advisory Commission under this section. SEC. 10504. MONITORING IMPLEMENTATION OF ACT. (a) In General.--The Advisory Commission shall monitor and evaluate the implementation of this title, including by conducting such hearings, and consulting with such Federal, State, local, and tribal governments, as the Advisory Commission considers appropriate for obtaining information and views about the purpose, implementation, and results of this title. (b) Biennial Report.--The Advisory Commission shall submit a report to the President and the Congress every 2 years which-- (1) presents the findings of the Advisory Commission under subsection (a); and (2) presents recommendations for improving the implementation of this title, including regarding any need for amending this title. SEC. 10505. SPECIAL AUTHORITIES OF ADVISORY COMMISSION. (a) Experts and Consultants.--For purposes of carrying out this subtitle, 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 subtitle. (c) Contract Authority.--The Advisory 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 subtitle. SEC. 10506. DEFINITIONS. In this subtitle: (1) Advisory commission.--The term ``Advisory Commission'' means the Advisory Commission on Intergovernmental Relations. (2) Federal mandate.--The term ``Federal mandate''-- (A) subject to subparagraph (B), means a requirement under Federal statute or regulation that a State or local government, or both, undertake an activity or provide a service; and (B) does not include any Federal statute or regulation that-- (i) enforces the constitutional rights of individuals, or (ii) establishes or enforces any statutory prohibition against discrimination on the basis of race, religion, gender, national origin, age, or handicapped or disability status. (3) Unfunded federal mandate.--The term ``unfunded Federal mandate'' means-- (A) a Federal mandate other than one that relates to a program described in subparagraph (B)(i), and-- (i) which requires that a State or local government, or both, undertake an activity or provide a service; and (ii) for which the Federal Government does not provide sufficient funds to undertake such activity or provide such service; or (B) a Federal mandate-- (i) that relates to a Federal program under which $500,000,000 or more is provided annually to State and local governments under entitlement authority (as defined in section 622(9) of title 2, United States Code), (ii) which requires that a State or local government, or both, undertake an activity or provide a service; and (iii)(I) with respect to which the failure to undertake such activity or provide such service would result in a reduction of Federal financial or technical assistance to the State or local government; or (II) would impose costs on a State or local government that exceed the amount of Federal financial assistance provided to the State or local government under the program. SEC. 10507. AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated to the Advisory Commission-- (1) to carry out section 10503, $500,000; and (2) to carry out section 10504, $200,000 for each of fiscal years 1995, 1996, 1997, 1998, and 1999. TITLE XI--ESTABLISHMENT OF FEDERAL MANDATE BUDGET COST CONTROL SEC. 11001. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF 1974. (a) Federal Regulatory Budget Cost Control System.--Title III of the Congressional Budget Act of 1974 is amended by inserting before section 300 the following new center heading ``PART A--GENERAL PROVISIONS'' and by adding at the end the following new part: ``PART B--FEDERAL MANDATE BUDGET COST CONTROL SEC. 321. OMB˙09CBO REPORTS. ``(a) OMB˙09CBO Initial Report.--Within 1 year after the date of enactment of this section, OMB and CBO shall jointly issue a report to the President and each House of Congress that contains the following: ``(1) For the first budget year beginning after the issuance of this report, a projection of the aggregate direct cost to States and local governments of complying with all Federal mandates in effect immediately before issuance of the report containing the projection for that budget year of the effect of current-year Federal mandates into the budget year and the outyears based on those mandates. ``(2) A calculation of the estimated aggregate direct cost to States and local governments of compliance with all Federal mandates as a percentage of the gross domestic product (GDP). ``(3) The estimated marginal cost (measured as a reduction in estimated gross domestic product) to States and local governments of compliance with all Federal mandates in excess of the cap (to be determined under paragraph (5)) allowable for the sixth year following the budget year and subsequent fiscal years. ``(4) The effect on the domestic economy of different types of Federal mandates. ``(5) The appropriate level of personnel, administrative overhead, and programmatic savings that should be achieved on a fiscal year by fiscal year basis by Federal agencies that issue mandates with direct costs to States and local governments through the reduction of such aggregate costs to States and local governments by 6.5 percent for the budget year (as measured against the aggregate mandate baseline for the first budget year to which this part applies) and by 6.5 percent increments for each of the outyears (until the aggregate level of such costs does not exceed 3 percent of the estimated gross domestic product for the same fiscal year as the estimated costs that will be incurred). ``(6) Recommendations for budgeting, technical, and estimating changes to improve the Federal mandate budgeting process. ``(b) Update Reports.--OMB and CBO shall issue update reports on September 15th of the fifth year beginning after issuance of the initial report and at 5-year intervals thereafter containing all the information required in the initial report, but based upon all Federal mandates in effect immediately before issuance of the most recent update report. ``(c) Initial Baseline Report.--Within 30 days after the date of enactment of this section, OMB and CBO shall jointly issue a report to the President and each House of Congress that contains an initial aggregate mandate baseline for the first budget year that begins at least 120 days after that date of enactment. That baseline will be a projection of the aggregate direct cost to States and local governments of complying with all Federal mandates in effect immediately before issuance of the report containing the projection for that budget year of the effect of current-year Federal mandates into the budget year and the outyears based on those mandates. ``SEC. 322. AGGREGATE MANDATE BASELINE. ``(a) In General.--For the first budget year beginning after the date of enactment of this section and for every other fiscal year thereafter, the aggregate mandate baseline refers to a projection of the aggregate direct cost to States and local governments of complying with all Federal mandates in effect immediately before issuance of the report containing the projection for that budget year of the effect of current- year Federal mandates into the budget year and the outyears based on those mandates. However, in the case of each of the succeeding fiscal years, the baseline shall be adjusted for the estimated growth during that year in the gross domestic product (GDP). ``(b) OMB˙09CBO Aggregate Mandate Baseline Reports.--(1) The first budget year for which there shall be an aggregate mandate baseline shall be the budget year to which the initial OMB˙09CBO baseline report issued under section 321(c) pertains. ``(2) In the case of each budget year after the budget year referred to in paragraph (1), not later than September 15 of the current year, OMB and CBO shall jointly issue a report containing the baseline referred to in subsection (a) for that budget year. ``SEC. 323. RECONCILIATION AND ALLOCATIONS. ``(a) Reconciliation Directives.--In addition to the requirements of section 310, a concurrent resolution on the budget for any fiscal year shall specify-- ``(1) changes in laws, regulations, and rules necessary to reduce the aggregate direct cost to States and local governments of complying with all Federal mandates by 6.5 percent for the budget year (as measured against the aggregate mandate baseline for the first budget year to which this part applies) and by 6.5 percent increments for each of the outyears (until the aggregate level of such costs does not exceed 3 percent of the estimated gross domestic product for the same fiscal year as the estimated costs that will be incurred) for Federal agencies that issue mandates producing direct costs to States and local governments; and ``(2) changes in laws necessary to achieve reductions in the level of personnel and administrative overhead and to achieve programmatic savings for the budget year and the outyears for those agencies of the following: ``(A) In the first outyear, one-fourth of the percent of reduction in mandate authority from the aggregate mandate base. ``(B) In the second outyear, one-third of the percent of reduction in mandate authority from the aggregate mandate base. ``(C) In the third, fourth, fifth, and sixth years following the budget year, one-half of the percent of reduction in mandate authority from the aggregate mandate base. Section 310(c) shall not apply with respect to directions made under this section. ``(b) Allocation of Totals.--(1) The Committees on the Budget of the House of Representatives and the Senate shall each allocate aggregate 2- year mandate authority among each committee of its House and by major functional category for the first budget year beginning after the date of enactment of this section and for the second, fourth, and sixth years following the budget year and then every other year thereafter. ``(2) As soon as practicable after receiving an allocation under paragraph (1), each committee shall subdivide its allocation among its subcommittees or among programs over which it has jurisdiction. ``(c) Point of Order.--(1) It shall not be in order in the House of Representatives or the Senate to consider any bill or resolution, or amendment thereto, which would cause the appropriate allocation made under subsection (b) for a fiscal year of mandate authority to be exceeded. ``(2) Waiver.--The point of order set forth in paragraph (1) may only be waived by the affirmative vote of at least three-fifths of the Members voting, a quorum being present. ``(d) Determinations by Budget Committees.--For purposes of this section, the level of mandate authority for a fiscal year shall be determined by the Committee on the Budget of the House of Representatives or the Senate, as the case may be. ``(e) Exceeding Allocation Totals.--Whenever any Committee of the House of Representatives exceeds its allocation of aggregate 2-year mandate authority under subsection (b)(1), any Member of the House of Representatives may offer a bill in the House (which shall be highly privileged, unamendable, and debateable for 30 minutes) which shall only prohibit the issuance of mandates by any agency under the jurisdiction of that committee for the fiscal years covered by that allocation until that committee eliminates its breach. ``SEC. 324. ANALYSIS OF MANDATES COSTS BY CONGRESSIONAL BUDGET OFFICE. ``CBO shall prepare for each bill or resolution of a public character reported by any committee of the House of Representatives or the Senate (except the Committee on Appropriations of each House), and submit to such committee-- ``(1) an estimate of the costs which would be incurred by States and local governments in carrying out or complying with such bill or resolution in the fiscal year in which it is to become effective and in each of the 4 fiscal years following such fiscal year, together with the basis of each such estimate; and ``(2) a comparison of the estimate of costs described in paragraph (1) with any available estimates of costs made by such committee or by any Federal agency. ``SEC. 325. DEFINITIONS. ``As used in this part: ``(1) The term `CBO' refers to the Director of the Congressional Budget Office. ``(2) The term `OMB' refers to the Director of the Office of Management and Budget. ``(3) The term `costs' when referring to `mandates' means the direct cost to States and local governments of complying with Federal mandates. ``(4) The term `direct costs' means (recognizing that direct costs are not the only costs associated with Federal mandates) all expenditures occurring as a direct result of complying with Federal mandates, except those applying to the military or agency organization, management, and personnel.''. SEC. 11002. PRESIDENT'S ANNUAL BUDGET SUBMISSIONS. Section 1105(a) of title 31, United States Code, is amended by adding at the end the following new paragraph: ``(29) a mandate authority budget analysis of the aggregate direct cost to States and local governments of complying with all current and proposed Federal mandates and proposals for complying with section 323 of the Congressional Budget Act of 1974 for the budget year and the outyears.'' SEC. 11003. ESTIMATION AND DISCLOSURE OF COSTS OF FEDERAL MANDATES. (a) Costs to State and Local Governments.--Chapter 6 of title 5, United States Code, popularly known as the ``Regulatory Flexibility Act'', is amended-- (1) by adding at the end of section 603 the following: ``(d) Each initial regulatory flexibility analysis for a proposed rule that establishes or implements a new Federal mandate shall also contain a description of the nature and amount of monetary costs that will be incurred by State and local governments in complying with the Federal mandate.''; (2) in section 604(a)-- (A) in paragraph (2) by striking ``and'' after the semicolon; (B) in paragraph (3) by striking the period and inserting ``; and''; and (C) by adding at the end the following: ``(4) in the case of an analysis for a rule that establishes or implements a new Federal mandate, a statement of the nature and amount of monetary costs that will be incurred by State and local governments in complying with the Federal mandate.''; and (3) in section 607 by inserting before the period the following: ``, except that estimates of monetary costs under sections 603(d) and 604(a)(4) shall only be in the form of a numerical description''. (b) Agency Reports.--Each agency that under chapter 6 of title 5, United States Code, prepares an initial regulatory flexibility analysis for a proposed rule that establishes or implements a new Federal mandate shall at the same time submit to each House of Congress and to CBO and OMB a cost estimate and cost/benefit analysis of any new Federal mandate that would have an aggregate direct cost to State and local governments of at least $10,000,000 for any fiscal year. TITLE XII--TAXPAYER DEBT BUY-DOWN SEC. 12001. DESIGNATION OF AMOUNTS FOR REDUCTION OF PUBLIC DEBT. (a) In General.--Subchapter A of chapter 61 of the Internal Revenue Code of 1986 (relating to returns and records) is amended by adding at the end the following new part: ``PART IX--DESIGNATION FOR REDUCTION OF PUBLIC DEBT. ``Sec. 6097. Designation. ``SEC. 6097. DESIGNATION. ``(a) In General.--Every individual with adjusted income tax liability for any taxable year may designate that a portion of such liability (not to exceed 10 percent thereof) shall be used to reduce the public debt. ``(b) Manner and Time of Designation.--A designation under subsection (a) may be made with respect to any taxable year only at the time of filing the return of tax imposed by chapter 1 for the taxable year. The designation shall be made on the first page of the return or on the page bearing the taxpayer's signature. ``(c) Adjusted Income Tax Liability.--For purposes of this section, the term `adjusted income tax liability' means income tax liability (as defined in section 6096(b)) reduced by any amount designated under section 6096 (relating to designation of income tax payments to Presidential Election Campaign Fund).'' (b) Clerical Amendment.--The table of parts for such subchapter A is amended by adding at the end the following new item: ``Part IX. Designation for reduction of public debt.'' (c) Effective Date.--The amendments made by this section shall apply to taxable years ending after December 31, 1995. SEC. 12002. PUBLIC DEBT REDUCTION TRUST FUND. (a) In General.--Subchapter A of chapter 98 of the Internal Revenue Code of 1986 (relating to trust fund code) is amended by adding at the end the following section: ``SEC. 9512. PUBLIC DEBT REDUCTION TRUST FUND. ``(a) Creation of Trust Fund.--There is established in the Treasury of the United States a trust fund to be known as the `Public Debt Reduction Trust Fund', consisting of any amount appropriated or credited to the Trust Fund as provided in this section or section 9602(b). ``(b) Transfers to Trust Fund.--There are hereby appropriated to the Public Debt Reduction Trust Fund amounts equivalent to the amounts designated under section 6097 (relating to designation for public debt reduction). ``(c) Expenditures.--Amounts in the Public Debt Reduction Trust Fund shall be available only for purposes of paying at maturity, or to redeem or buy before maturity, any obligation of the Federal Government included in the public debt. Any obligation which is paid, redeemed, or bought with amounts from such Trust Fund shall be canceled and retired and may not be reissued.'' (b) Clerical Amendment.--The table of sections for such subchapter is amended by adding at the end the following new item: ``Sec. 9512. Public Debt Reduction Trust Fund.'' (c) Effective Date.--The amendments made by this section shall apply to amounts received after the date of the enactment of this Act. SEC. 12003. TAXPAYER-GENERATED SEQUESTRATION OF FEDERAL SPENDING TO REDUCE THE PUBLIC DEBT. (a) Sequestration To Reduce the Public Debt.--Part C of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding after section 253 the following new section: ``SEC. 253A. SEQUESTRATION TO REDUCE THE PUBLIC DEBT. ``(a) Sequestration.--Notwithstanding sections 255 and 256, within 15 days after Congress adjourns to end a session, and on the same day as sequestration (if any) under sections 251, 252, and 253, but after any sequestration required by those sections, there shall be a sequestration equivalent to the estimated aggregate amount designated under section 6097 of the Internal Revenue Code of 1986 for the last taxable year ending before the beginning of that session of Congress, as estimated by the Department of the Treasury on May 1 and as modified by the total of (1) any amounts by which net discretionary spending is reduced by legislation below the discretionary spending limits (or, in the absence of such limits, any net deficit change from the baseline amount calculated under section 257, except that such baseline for fiscal year 1996 and thereafter shall be based upon fiscal year 1995 enacted appropriations less any 1995 sequesters) and (2) the net deficit change that has resulted from direct spending legislation. ``(b) Applicability.-- ``(1) In general.--Except as provided by paragraph (2), each account of the United States shall be reduced by a dollar amount calculated by multiplying the level of budgetary resources in that account at that time by the uniform percentage necessary to carry out subsection (a). All obligational authority reduced under this section shall be done in a manner that makes such reductions permanent. ``(2) Exempt accounts.--No order issued under this part may-- ``(A) reduce benefits payable the old-age, survivors, and disability insurance program established under title II of the Social Security Act; ``(B) reduce payments for net interest (all of major functional category 900); or ``(C) make any reduction in the following accounts: ``Federal Deposit Insurance Corporation, Bank Insurance Fund; ``Federal Deposit Insurance Corporation, FSLIC Resolution Fund; ``Federal Deposit Insurance Corporation, Savings Association Insurance Fund; ``National Credit Union Administration, credit union share insurance fund; or ``Resolution Trust Corporation.''. (b) Reports.--Section 254 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended-- (1) in subsection (a), by inserting before the item relating to August 10 the following: ``May 1 . . . Department of Treasury report to Congress estimating amount of income tax designated pursuant to section 6097 of the Internal Revenue Code of 1986.''; (2) in subsection (d)(1), by inserting ``, and sequestration to reduce the public debt,''; (3) in subsection (d), by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: ``(5) Sequestration to reduce the public debt reports.--The preview reports shall set forth for the budget year estimates for each of the following: ``(A) The aggregate amount designated under section 6097 of the Internal Revenue Code of 1986 for the last taxable year ending before the budget year. ``(B) The amount of reductions required under section 253A and the deficit remaining after those reductions have been made. ``(C) The sequestration percentage necessary to achieve the required reduction in accounts under section 253A(b).''; and (4) in subsection (g), by redesignating paragraphs (4) and (5) as paragraphs (5) and (6), respectively, and by inserting after paragraph (3) the following new paragraph: ``(4) Sequestration to reduce the public debt reports.--The final reports shall contain all of the information contained in the public debt taxation designation report required on May 1.''. (c) Effective Date.--Notwithstanding section 275(b) of the Balanced Budget and Emergency Deficit Control Act of 1985, the expiration date set forth in that section shall not apply to the amendments made by this section. The amendments made by this section shall cease to have any effect after the first fiscal year during which there is no public debt. TITLE XIII--SMALL BUSINESS INCENTIVES SEC. 13001. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDITS. (a) Estate Tax Credit.-- (1) Subsection (a) of section 2010 of the Internal Revenue Code of 1986 (relating to unified credit against estate tax) is amended by striking ``$192,800'' and inserting ``the applicable credit amount''. (2) Section 2010 of such Code is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection: ``(c) Applicable Credit Amount.--For purposes of this section-- ``(1) In general.--The applicable credit amount is the amount of the tentative tax which would be determined under the rate schedule set forth in section 2001(c) if the amount with respect to which such tentative tax is to be computed were the applicable amount determined in accordance with the following table: ``In the case of estates of decedentsThe applicable dying, and gifts made: during amount is: 1996$700,00005 1997$725,00005 1998 or thereafter$750,000. ``(3) Cost-of-living adjustments.--In the case of any decedent dying in a calendar year after 1996, the $750,000 amount set forth in paragraph (1) shall be increased by an amount equal to-- ``(A) $750,000, multiplied by ``(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting `calendar year 1995' for `calendar year 1992' in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $1,000.'' (3) Paragraph (1) of section 6018(a) of such Code is amended by striking ``$600,000'' and inserting ``$750,000 (adjusted as provided in section 2010(c)(2)''. (b) Unified Gift Tax Credit.--Paragraph (1) of section 2505(a) of such Code is amended by striking ``$192,800'' and inserting ``the applicable credit amount in effect under section 2010(c) for such calendar year''. (c) Effective Date.--The amendments made by this section shall apply to the estates of decedents dying, and gifts made, after December 31, 1995. SEC. 13002. INCREASE IN EXPENSE TREATMENT FOR SMALL BUSINESSES. (a) General Rule.--Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 (relating to dollar limitation) is amended by striking ``$17,500'' and inserting ``$25,000''. (b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1995. SEC. 13003. CLARIFICATION OF DEFINITION OF PRINCIPAL PLACE OF BUSINESS. (a) In General.--Subsection (f) of section 280A of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, and by inserting after paragraph (1) the following new paragraph: ``(2) Principal place of business.--For purposes of subsection (c), a home office shall in any case qualify as the principal place of business if-- ``(A) the office is the location where the taxpayer's essential administrative or management activities are conducted on a regular and systematic (and not incidental) basis by the taxpayer, and ``(B) the office is necessary because the taxpayer has no other location for the performance of the administrative or management activities of the business.''. (b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1995. SEC. 13004. TREATMENT OF STORAGE OF PRODUCT SAMPLES. (a) In General.--Paragraph (2) of section 280A(c) of the Internal Revenue Code of 1986 is amended by striking ``inventory'' and inserting ``inventory or product samples''. (b) Effective Date.--The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1995.