§658c — Title 2 The Congress | U.S. Code

Summary

The Director of the Congressional Budget Office must prepare a short cost statement for any public bill a House or Senate authorizing committee reports. For mandates on state, local, or tribal governments, if the direct cost will be $50,000,000 or more (adjusted yearly for inflation) in the first fiscal year the mandate would take effect or in any of the next four years, the Director must say so, give the dollar estimate, and briefly explain how it was reached. The statement must show the total direct cost, any new yearly budget authority the bill would need for up to 10 years to cover those costs, and any added federal aid the bill would authorize that governments could use for the mandated activities. If the bill reduces federal support for a program, the Director must say whether states can make up the loss now or whether added flexibility in the bill would let states save enough to cover the cut if they fully use that flexibility. For mandates on private businesses, the same rules apply but the threshold is $100,000,000 (adjusted yearly for inflation). If a reasonable estimate can’t be made, the Director must say that and explain why. If costs are below the thresholds, the Director must say that and give a brief reason. If a bill is amended or a conference report adds a new or more costly mandate, the conference committee should, when possible, get the Director to prepare a new or supplemental statement.

Title 2, §658c

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(a)For each bill or joint resolution of a public character reported by any committee of authorization of the Senate or the House of Representatives, the Director of the Congressional Budget Office shall prepare and submit to the committee a statement as follows:

(1)If the Director estimates that the direct cost of all Federal intergovernmental mandates in the bill or joint resolution will equal or exceed $50,000,000 (adjusted annually for inflation) in the fiscal year in which any Federal intergovernmental mandate in the bill or joint resolution (or in any necessary implementing regulation) would first be effective or in any of the 4 fiscal years following such fiscal year, the Director shall so state, specify the estimate, and briefly explain the basis of the estimate.

(2)Estimates required under paragraph (1) shall include estimates (and brief explanations of the basis of the estimates) of—

(A)the total amount of direct cost of complying with the Federal intergovernmental mandates in the bill or joint resolution;

(B)if the bill or resolution contains an authorization of appropriations under section 658d(a)(2)(B) of this title, the amount of new budget authority for each fiscal year for a period not to exceed 10 years beyond the effective date necessary for the direct cost of the intergovernmental mandate; and

(C)the amount, if any, of increase in authorization of appropriations under existing Federal financial assistance programs, or of authorization of appropriations for new Federal financial assistance, provided by the bill or joint resolution and usable by State, local, or tribal governments for activities subject to the Federal intergovernmental mandates.

(3)The Director shall include in the statement submitted under this subsection, in the case of legislation that makes changes as described in section 658(5)(B)(i)(II) of this title—

(A)if no additional flexibility is provided in the legislation, a description of whether and how the States can offset the reduction under existing law; or

(B)if additional flexibility is provided in the legislation, whether the resulting savings would offset the reductions in that program assuming the States fully implement that additional flexibility.

(4)If the Director determines that it is not feasible to make a reasonable estimate that would be required under paragraphs (1) and (2), the Director shall not make the estimate, but shall report in the statement that the reasonable estimate cannot be made and shall include the reasons for that determination in the statement. If such determination is made by the Director, a point of order under this part shall lie only under section 658d(a)(1) of this title and as if the requirement of section 658d(a)(1) of this title had not been met.

(b)For each bill or joint resolution of a public character reported by any committee of authorization of the Senate or the House of Representatives, the Director of the Congressional Budget Office shall prepare and submit to the committee a statement as follows:

(1)If the Director estimates that the direct cost of all Federal private sector mandates in the bill or joint resolution will equal or exceed $100,000,000 (adjusted annually for inflation) in the fiscal year in which any Federal private sector mandate in the bill or joint resolution (or in any necessary implementing regulation) would first be effective or in any of the 4 fiscal years following such fiscal year, the Director shall so state, specify the estimate, and briefly explain the basis of the estimate.

(2)Estimates required under paragraph (1) shall include estimates (and a brief explanation of the basis of the estimates) of—

(A)the total amount of direct costs of complying with the Federal private sector mandates in the bill or joint resolution; and

(B)the amount, if any, of increase in authorization of appropriations under existing Federal financial assistance programs, or of authorization of appropriations for new Federal financial assistance, provided by the bill or joint resolution usable by the private sector for the activities subject to the Federal private sector mandates.

(3)If the Director determines that it is not feasible to make a reasonable estimate that would be required under paragraphs (1) and (2), the Director shall not make the estimate, but shall report in the statement that the reasonable estimate cannot be made and shall include the reasons for that determination in the statement.

(c)If the Director estimates that the direct costs of a Federal mandate will not equal or exceed the thresholds specified in subsections (a) and (b), the Director shall so state and shall briefly explain the basis of the estimate.

(d)If a bill or joint resolution is passed in an amended form (including if passed by one House as an amendment in the nature of a substitute for the text of a bill or joint resolution from the other House) or is reported by a committee of conference in amended form, and the amended form contains a Federal mandate not previously considered by either House or which contains an increase in the direct cost of a previously considered Federal mandate, then the committee of conference shall ensure, to the greatest extent practicable, that the Director shall prepare a statement as provided in this subsection or a supplemental statement for the bill or joint resolution in that amended form.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1999—Subsec. (a)(3), (4). Pub. L. 106–141 added par. (3) and redesignated former par. (3) as (4).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1996, or on the date 90 days after appropriations are made available as authorized under section 1516 of this title, whichever is earlier, and applicable to legislation considered on and after such date, see section 110 of Pub. L. 104–4, set out as a note under section 1511 of this title.

§658c Duties of Director; statements on bills and joint resolutions other than appropriations bills and joint resolutions