BACKGROUND OF THE ACT

The Unfunded Mandates Reform Act of 1995 (P.L. 104-4) (Part B of Title IV of the Congressional Budget Act of 1974) took effect on January 1, 1996. It contains a number of new requirements for committee bill reports and establishes new points of order against bills, amendments, motions, and conference reports not meeting certain requirements.

WHAT COMMITTEES MUST DO (section 423)

_____ When bills with mandates are referred to the committee, call CBO and send a copy of the bill to them as soon as possible.

_____ In the annual Views and Estimates Report to the Budget Committee, identify issues the committee will consider that will have costs for state, local and tribal governments and the private sector.

_____ When a bill is ordered reported by the committee, immediately send the marked up bill to CBO with a list of mandates, if any, contained in the bill.

WHAT COMMITTEE REPORTS MUST INCLUDE (section 423)

_____ CBO mandate cost statement (if not in report, it must be placed in the Congressional Record before floor consideration).

_____ Description of all mandates, including direct compliance costs.

_____ Assessment of mandates' costs and benefits.

_____ Explanation of whether mandate affects both public and private sectors.

_____ Determination of whether paying for or easing an intergovernmental mandate affects the competitive balance between state and local governments and the private sector.

____ Statement of how an intergovernmental mandate is paid for (direct spending authorization or authorization of appropriations).

_____ Statement on whether committee intends that the intergovernmental mandate be partly or entirely unfunded.

_____ If funded, explanation of mechanism used to allocate funding among jurisdictions.

_____ Description of existing sources of federal assistance to cover direct costs of an intergovernmental mandate.

_____ Statement on whether the bill is intended to preempt any state, local or tribal law.

POINTS OF ORDER ON THE HOUSE FLOOR (sections 425 and 426)

_____ Failure to publish CBO cost statement for both intergovernmental and private sector mandates.

_____ Bills, amendments, motions, and conference reports that increase direct costs of intergovernmental mandates by more than $50 million, unless sufficient spending authority is provided and a specific authorization is provided for each fiscal year up to 10 years after the effective date.

_____ Bills, amendments, motions, and conference reports, unless they provide for agencies to determine if there are sufficient funds to cover the costs of new intergovernmental mandates. If insufficient, agencies must notify authorizing committees within 30 days of the beginning of the fiscal year. Agencies can submit a re-estimate of costs or recommend a less costly approach; otherwise the mandate is ineffective for that fiscal year. If Congress takes no action within 60 days, the mandate is ineffective.

_____ Legislative provisions in, or amendments to, appropriations bills that increase direct costs of intergovernmental mandates but do not provide funding or have the appropriate CBO statement.