[DOCID: f:h9ih.txt]
104th CONGRESS
  1st Session
                                 H. R. 9

  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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

 Mr. Archer, Mr. DeLay, Mr. Saxton, Mrs. Smith of Washington, and Mr. 
 Tauzin (for themselves, Mr. Hastert, Mr. Dornan, Mr. Rohrabacher, Mr. 
 Blute, Mr. Smith of Texas, Mr. Linder, Mr. Kim, Mr. Mica, Mr. Bachus, 
  Ms. Danner, Mr. Hoke, Mr. Clinger, Mr. Ballenger, Mr. Callahan, Mr. 
  Shaw, Mr. Nussle, Mr. Largent, Mr. Cox, Mr. Stockman, Mr. Smith of 
   Michigan, Mr. Baker of California, Mr. Herger, Mr. Heineman, Mrs. 
 Fowler, Mr. Sensenbrenner, Mr. Stearns, Mr. Hutchinson, Mr. Hancock, 
 Mr. Talent, Mr. Emerson, Mr. English of Pennsylvania, Mr. Ensign, Mr. 
    Hostettler, Mr. Jones, Mr. Tiahrt, Mrs. Myrick, Mr. Ewing, Mr. 
  Houghton, Mrs. Cubin, Mr. Kingston, Mr. Hastings of Washington, Mr. 
 Ganske, Mr. Schaefer, Mr. Baker of Louisiana, Mr. Hall of Texas, Mr. 
 Weldon of Florida, Mr. Coburn, Mr. Weller, Mr. Lewis of Kentucky, Mr. 
   Bunning of Kentucky, Mr. Foley, Mr. Inglis of South Carolina, Mr. 
 Lightfoot, Mr. Istook, Mr. Calvert, Mr. Hobson, Mr. Knollenberg, Mr. 
 Bilirakis, Mr. Hayworth, Mr. Fox, Mr. Radanovich, Mr. Roth, Mr. Wamp, 
 Mr. Solomon, Mr. Bliley, Mr. Doolittle, Mr. Packard, Mr. Gilman, Mr. 
 Miller of Florida, Mr. Royce, Mr. Flanagan, Mr. Latham, Ms. Molinari, 
Mr. Gunderson, Mr. Thornberry, Mr. Riggs, Mr. Allard, Mr. Christensen, 
 Mr. Goodlatte, Mr. Sanford, Mr. Hilleary, Mr. Cooley, Mr. Wicker, Mr. 
 Bono, Mr. Frisa, Mr. McIntosh, Mr. Everett, Mr. Smith of New Jersey, 
Mr. Shadegg, Mrs. Johnson of Connecticut, Mr. Chrysler, Mr. Cunningham, 
Mr. Canady, Mr. McCollum, Mr. Goodling, Mr. Barton of Texas, Mr. Barr, 
Mr. Armey, Mr. Forbes, Mrs. Waldholtz, Mr. Tate, Ms. Dunn, Mr. McHugh, 
Mr. Crapo, Mr. Kolbe, Mr. Paxon, Mr. Young of Florida, Mr. Combest, Mr. 
Coble, Mr. Ehrlich, and Mrs. Meyers of Kansas) introduced the following 
                  bill; which was referred as follows:
        Titles I-II, referred to the Committee on Ways and Means
 Title III, referred to the Committee on Science and, in addition, to 
 the Committees on Commerce and Government Reform and Oversight, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned
Title IV, referred to the Committee on the Budget and, in addition, to 
   the Committees on Rules, Government Reform and Oversight, and the 
 Judiciary, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned
 Title V, referred to the Committee on Government Reform and Oversight
        Title VI-IX, referred to the Committee on the Judiciary
 Title X, referred to the Committee on the Budget and, in addition, to 
   the Committees on Government Reform and Oversight, Rules, and the 
 Judiciary, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned
Title XI, referred to the Committee on Ways and Means and, in addition, 
    to the Committee on the Budget, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned
         Title XII, referred to the Committee on Ways and Means

                            January 19, 1995

 Additional sponsors: Mr. Stump, Mr. Lucas, Mr. Burton of Indiana, Mr. 
  Norwood, Mrs. Vucanovich, Mr. Walker, Mr. Hunter, Mr. Cremeans, Mr. 
 Livingston, Mr. LaTourette, Mr. Sam Johnson of Texas, and Mr. Collins 
                               of Georgia

                            February 9, 1995

Titles V, VI and section 4003 are rereferred to the Committee on Small 
                                Business

                            February 9, 1995

Additional sponsors: Mrs. Seastrand, Mr. Roberts, Mr. Pombo, Mr. Crane, 
                        and Mr. Fields of Texas

_______________________________________________________________________

                                 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.

    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 after December 31, 1994.
     TITLE III--RISK ASSESSMENT AND COST/BENEFIT ANALYSIS FOR NEW 
                              REGULATIONS

Sec. 3001. Findings
             Subtitle A--Risk Assessment and 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 and communication.
Sec. 3106. Guidelines, plan for assessing new information, and report.
Sec. 3107. Definitions.
       Subtitle B--Analysis of Risk Reduction Benefits and Costs

Sec. 3201. Analysis of risk reduction benefits and costs.
                        Subtitle C--Peer Review

Sec. 3301. Peer review program.
   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. 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.
Sec. 8209. Relation to criminal investigations.
     TITLE IX--PRIVATE PROPERTY RIGHTS PROTECTIONS AND COMPENSATION

Sec. 9001. Statement of purpose.
Sec. 9002. Compensation for Federal agency infringement or deprivation 
                            of rights to private property.
Sec. 9003. Severability.
Sec. 9004. Definitions.
     TITLE X--ESTABLISHMENT OF FEDERAL MANDATE BUDGET COST CONTROL

Sec. 10001. Amendments to the Congressional Budget Act of 1974.
Sec. 10002. President's annual budget submissions.
Sec. 10003. Estimation and disclosure of costs of Federal mandates.
                    TITLE XI--TAXPAYER DEBT BUY-DOWN

Sec. 11001. Designation of amounts for reduction of public debt.
Sec. 11002. Public Debt Reduction Trust Fund.
Sec. 11003. Taxpayer-generated sequestration of Federal spending to 
                            reduce the public debt.
                  TITLE XII--SMALL BUSINESS INCENTIVES

Sec. 12001. Increase in unified estate and gift tax credits.
Sec. 12002. Increase in expense treatment for small businesses.
Sec. 12003. Clarification of definition of principal place of business.
Sec. 12004. 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 1, 1995--
                    ``(A) 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 1, 
                1995, and
                    ``(B) if the net capital gain for such year exceeds 
                the amount taken into account under subsection (a), the 
                rate of tax imposed by section 1 on such excess shall 
                not exceed 28 percent.
            ``(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, 59A, or 1201(a)'' and 
        inserting ``section 11, 55, or 59A''.
            (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) Subsection (e) of section 1445 of such Code is 
        amended--
                    (A) in paragraph (1) 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)'', and
                    (B) in paragraph (2) by striking ``35 percent'' and 
                inserting ``17.5 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 December 31, 1994.
            (2) Contributions.--The amendment made by subsection (c)(3) 
        shall apply only to contributions on or after January 1, 1995.
            (3) 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).
            ``(4) Treatment of american depository receipts.--For 
        purposes of this section, an American depository receipt for 
        stock in a foreign corporation shall be treated as stock in 
        such corporation.
    ``(c) Indexed Basis.--For purposes of this section--
            ``(1) General rule.--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 domestic product deflator for the 
                calendar quarter in which the disposition takes place, 
                by
                    ``(B) the gross domestic 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 never be less than 1. The 
        applicable inflation ratio for any asset shall be rounded to 
        the nearest \1/1000\.
            ``(3) Gross domestic product deflator.--The gross domestic 
        product deflator for any calendar quarter is the implicit price 
        deflator for the gross domestic 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)(2) for purposes of the preceding 
        sentence, the date on which the property is sold short shall be 
        treated as the date of acquisition 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.--In the case of a partnership, the 
        adjustment made under subsection (a) at the partnership level 
        shall be passed through to the partners.
            ``(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 after December 31, 1994, in taxable years 
ending after such date.

                    TITLE II--NEUTRAL COST RECOVERY

SEC. 2001. DEPRECIATION ADJUSTMENT FOR CERTAIN PROPERTY PLACED IN 
              SERVICE AFTER DECEMBER 31, 1994.

    (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:
    ``(k) Deduction Adjustment To Allow Equivalent of Expensing For 
Certain Property Placed in Service After December 31, 1994.--
            ``(1) In general.--In the case of tangible property placed 
        in service after December 31, 1994, the deduction under this 
        section with respect to such property--
                    ``(A) shall be determined by substituting `150 
                percent' for `200 percent' in subsection (b)(1) in the 
                case of property to which the 200 percent declining 
                balance method would otherwise apply, and
                    ``(B) for any taxable year after the taxable year 
                during which the property is placed in service shall 
                be--
                            ``(i) the amount determined under this 
                        section for such taxable year without regard to 
                        this subparagraph, multiplied by
                            ``(ii) the applicable neutral cost recovery 
                        ratio for such taxable year.
            ``(2) Applicable neutral cost recovery ratio.--For purposes 
        of paragraph (1)--
                    ``(A) In general.--The applicable neutral cost 
                recovery ratio for the property for any taxable year is 
                the number determined by--
                            ``(i) dividing--
                                    ``(I) the gross domestic 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 domestic product 
                                deflator for the calendar quarter 
                                during which the property was placed in 
                                service by the taxpayer, and
                            ``(ii) then multiplying the number 
                        determined under clause (i) 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 never 
                be less than 1. The applicable neutral cost recovery 
                ratio shall be rounded to the nearest \1/1000\.
                    ``(B) Special rule for certain property.--In the 
                case of property described in paragraph (2) or (3) of 
                subsection (b) or in subsection (g), the applicable 
                neutral cost recovery ratio shall be determined without 
                regard to subparagraph (A)(ii).
            ``(3) Gross domestic product deflator.--For purposes of 
        paragraph (2), the gross domestic product deflator for any 
        calendar quarter is the implicit price deflator for the gross 
        domestic 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.
            ``(6) Churning transactions.--This subsection shall not 
        apply to any property if this section would not apply to such 
        property were subsection (f)(5)(A)(ii) applied by substituting 
        `1995' for `1981' and `1994' for `1980'.
            ``(7) Additional deduction not to affect basis or 
        recapture.--The additional amount determined under this section 
        by reason of this subsection shall not be taken into account in 
        determining the adjusted basis of any property or of any 
        interest in a pass-thru entity (as defined in section 
        1201(d)(2)) which holds such property and shall not be treated 
        as a deduction for depreciation for purposes of sections 1245 
        and 1250.''
    (b) Minimum Tax Treatment.--
            (1) 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 property to which section 168(k) applies and 
                which is placed in service after December 31, 1994, 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(k)).
                This subparagraph shall not apply to any property with 
                respect to which there is an election in effect not to 
                have section 168(k)) apply.''
            (2) Subparagraph (C) of section 56(g)(4) of such Code is 
        amended by adding at the end the following new clause:
                            ``(v) Neutral cost recovery deduction.--
                        Clause (i) shall not apply to the additional 
                        deduction allowable by reason of section 
                        168(k).''
    (c) Coordination With Depreciation Limitation on Certain 
Automobiles.--Clause (i) of section 280F(a)(1)(B) of such Code is 
amended by adding at the end the following new sentence: ``For purposes 
of this clause, the unrecovered basis of any passenger automobile shall 
be treated as including the additional amount determined under section 
168 by reason of subsection (k) thereof to the extent not allowed as a 
deduction by reason of this paragraph for any taxable year in the 
recovery period.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 1994.

     TITLE III--RISK ASSESSMENT AND COST/BENEFIT ANALYSIS FOR NEW 
                              REGULATIONS

SEC. 3001. FINDINGS.

    The Congress finds that:
            (1) Environmental, health, and safety regulations have led 
        to dramatic improvements in the environment and have 
        significantly reduced human health risk; however, the Federal 
        regulations that have led to these improvements have been more 
        costly and less effective than they could have been; too often, 
        regulatory priorities have not been based upon a realistic 
        consideration of risk, risk reduction opportunities, and costs.
            (2) The public and private resources available to address 
        health, safety, and environmental concerns are not unlimited; 
        those resources need to be allocated to address the greatest 
        needs in the most cost-effective manner and so that the 
        incremental costs of regulatory options are reasonably related 
        to the incremental benefits.
            (3) To provide more cost-effective and costreasonable 
        protection to human health and the environment, regulatory 
        priorities should be based upon realistic consideration of 
        risk; the priority setting process must include scientifically 
        sound, objective, and unbiased risk assessments, comparative 
        risk analysis, and risk management choices that are grounded in 
        cost-benefit principles.
            (4) Risk assessment has proven to be a useful decision 
        making tool; however, improvements are needed in both the 
        quality of assessments and the characterization and 
        communication of findings; scientific and other data must be 
        better collected, organized, and evaluated; most importantly, 
        the critical information resulting from a risk assessment must 
        be effectively communicated in an objective and unbiased manner 
        to decision makers, and from decision makers to the public.
            (5) The public stake holders must be fully involved in the 
        risk-decision making process. They have the right-to-know about 
        the risks addressed by regulation, the amount of risk to be 
        reduced, the quality of the science used to support decisions, 
        and the cost of implementing and complying with regulations. 
        This knowledge will allow for public scrutiny and promote 
        quality, integrity, and responsiveness of agency decisions.

             Subtitle A--Risk Assessment and Communication

SEC. 3101. SHORT TITLE.

    This subtitle may be cited as the ``Risk Assessment and 
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 and unbiased 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 18 
months after the date of enactment of this subtitle.
    (b) Applicability.--
            (1) In general.--Except as provided in paragraph (2), this 
        title applies to all risk assessments and risk 
        characterizations prepared by, or on behalf of, any Federal 
        agency in connection with Federal regulatory programs designed 
        to protect human health, safety, or the environment.
            (2) Exceptions.--(A) This title does not apply to risk 
        assessments or risk characterizations performed with respect to 
        either of the following:
                    (i) A situation that the head of the agency 
                considers to be an emergency.
                    (ii) A screening analysis, including a screening 
                analysis for purposes of product regulation, product 
                reregistration, or premanufacturing notices.
            (B) No analysis shall be treated as a screening analysis 
        for purposes of subparagraph (A) if the results of such 
        analyses are used either--
                    (i) as the basis for imposing restrictions on 
                substances or activities, or
                    (ii) to characterize a positive finding of risks 
                from substances or activities in any final agency 
                document made available to the general public.
            (3) Labels.--This title shall not apply to any food, drug, 
        or other product label or to any risk characterization 
        appearing on any such label.
    (c) Savings Provisions.--Nothing in this subtitle shall be 
construed to modify any statutory standard or requirement designed to 
protect health, safety, or the environment. Nothing in this subtitle 
shall be interpreted to preclude the consideration of any data or the 
calculation of any estimate to more fully describe risk or provide 
examples of scientific uncertainty or variability. Nothing in this 
title shall be construed to require the disclosure of any trade secret 
or other confidential information.

SEC. 3104. PRINCIPLES FOR RISK ASSESSMENT.

    (a) In General.--The head of each Federal agency 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 distinguish scientific findings from other considerations 
and are, to the maximum extent feasible, scientifically objective, 
unbiased, 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 as follows:
            (1) When assessing human health risks, a risk assessment 
        shall consider and discuss both laboratory and epidemiological 
        data of sufficient quality which finds, or fails to find, a 
        correlation between health risks and a potential toxin or 
        activity. Where conflicts among such data appear to exist, or 
        where animal data is used as a basis to assess human health, 
        the assessment shall include discussion of possible 
        reconciliation of conflicting information, and as appropriate, 
        differences in study designs, comparative physiology, routes of 
        exposure, bioavailability, pharmacokinetics, and any other 
        relevant factor.
            (2) Where a risk assessment involves selection of any 
        significant assumption, inference, or model, the Federal agency 
        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;
                    (C) identify any policy or value judgments;
                    (D) fully describe any model used in the risk 
                assessment and make explicit the assumptions 
                incorporated in the model; and
                    (E) indicate the extent to which any significant 
                model has been validated by, or conflicts with, 
                empirical data.

SEC. 3105. PRINCIPLES FOR RISK CHARACTERIZATION AND COMMUNICATION.

    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, each Federal agency characterizing the 
risk shall comply with each of the following:
            (1) Estimates of risk.--The head of such agency shall 
        describe the populations or natural resources which are the 
        subject of the risk characterization. If a numerical estimate 
        of risk is provided, the agency shall, to the extent feasible 
        and scientifically appropriate, provide--
                    (A) the best estimate or estimates for the specific 
                populations or natural resources which are the subject 
                of the characterization (based on the information 
                available to the department, agency, or 
                instrumentality); and
                    (B) a statement of the reasonable range of 
                scientific uncertainties.
        In addition to such best estimate or estimates, the Federal 
        agency may present plausible upper-bound or conservative 
        estimates in conjunction with plausible lower bounds estimates. 
        Where appropriate, the Federal agency 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. To the extent practical and 
        appropriate, the Federal agency shall provide descriptions of 
        the distribution and probability of risk estimates to reflect 
        differences in exposure variability in populations and 
        uncertainties.
            (2) Exposure scenarios.--The Federal agency shall explain 
        the 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) Comparisons.--To the extent feasible, the Federal 
        agency shall provide a statement that places the nature and 
        magnitude of risks to human health in context. Such statement 
        shall include appropriate comparisons with estimates of risks 
        that are familiar to and routinely encountered by the general 
        public as well as other risks. The statement shall identify 
        relevant distinctions among categories of risk and limitations 
        to comparisons.
            (4) Substitution risks.--When a Federal agency provides a 
        risk assessment or risk characterization for a proposed or 
        final regulatory action, such assessment or characterization 
        shall include a statement of any significant substitution risks 
        to human health, where information on such risks has been 
        provided to the agency.
            (5) Summaries of other risk estimates.--If--
                    (A) a Federal agency provides a public comment 
                period with respect to a risk assessment or regulation,
                    (B) a commenter provides a risk assessment, and a 
                summary of results of such risk assessment, and
                    (C) such risk assessment is consistent with the 
                principles and the guidance provided under this 
                subtitle,
        the agency shall present such summary in connection with the 
        presentation of the agency's risk assessment or the regulation.

SEC. 3106. GUIDELINES, PLAN FOR ASSESSING NEW INFORMATION, AND REPORT.

    (a) Guidelines.--Within 15 months after the date of enactment of 
this subtitle, the President shall issue guidelines for Federal 
agencies consistent with the risk assessment and characterization 
principles set forth in sections 3104 and 3105 and shall provide a 
format for summarizing risk assessment results. In addition, such 
guidelines shall include guidance on at least the following subjects: 
criteria for scaling animal studies to assess risks to human health; 
use of different types of dose-response models; thresholds; 
definitions, use, and interpretations of the maximum tolerated dose; 
weighting of evidence with respect to extrapolating human health risks 
from sensitive species; evaluation of benign tumors, and evaluation of 
different human health endpoints.
    (b) Plan.--Within 18 months after the date of enactment of this 
subtitle, each Federal agency shall publish a plan to review and revise 
any risk assessment published prior to the expiration of such 18-month 
period if the agency determines that significant new information or 
methodologies are available that could significantly alter the results 
of the prior 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 such Federal agency considers appropriate.
    (c) Report.--Within 3 years after the enactment of this subtitle, 
each Federal agency shall provide a report to the Congress evaluating 
the categories of policy and value judgments identified under 
subparagraph (C) of section 3104(b)(2).
    (d) Public Comment and Consultation.--The guidelines, plan and 
report under this section, shall be developed after notice and 
opportunity for public comment, and after consultation with 
representatives of appropriate State agencies and local governments, 
and such other departments and agencies, offices, organizations, or 
persons as may be advisable.
    (e) Review.--The President shall review the guidelines published 
under this section at least every 4 years.

SEC. 3107. DEFINITIONS.

    For purposes of this subtitle:
            (1) Risk assessment.--The term ``risk assessment'' means 
        the process of identifying hazards and quantifying or 
        describing the degree of toxicity, exposure, or other risk they 
        pose for exposed individuals, populations, or resources. Such 
        term also refers to the document containing the explanation of 
        how the assessment process has been applied to an individual 
        substance, activity, or condition.
            (2) Risk characterization.--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) Best estimate.--The term ``best estimate'' means an 
        estimate which, to the extent feasible and scientifically 
        appropriate, is based on one of the following:
                    (A) Central estimates of risk using the most 
                plausible assumptions.
                    (B) An approach which combines multiple estimates 
                based on different scenarios and weighs the probability 
                of each scenario.
                    (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 Federal agency concerned.
            (4) Substitution risk.--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.
            (5) Federal agency.--The term ``Federal agency'' means an 
        executive department, military department, or independent 
        establishment as defined in part I of title 5 of the United 
        States Code, except that such term also includes the Office of 
        Technology Assessment.

       Subtitle B--Analysis of Risk Reduction Benefits and Costs

SEC. 3201. ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS.

    (a) In General.--Except as provided in subsection (b), the 
President shall require each executive branch agency to prepare the 
following for each major rule designed to protect human health, safety, 
or the environment that is proposed or promulgated by the agency after 
the date of enactment of this Act:
            (1) For each such proposed or promulgated rule, an 
        assessment of incremental costs and incremental risk reduction 
        or other benefits associated with each significant regulatory 
        alternative considered by the agency in connection with the 
        rule or proposed rule.
            (2) For each such proposed or promulgated rule, to the 
        extent feasible, a comparison of any human health, safety, or 
        environmental risks addressed by the regulatory alternatives to 
        other risks chosen by the head of the agency, including at 
        least 3 other risks regulated by the agency and to at least 3 
        other risks with which the public is familiar.
            (3) For each such proposed or promulgated rule, a statement 
        of other human health risks potentially posed by implementing 
        or complying with the regulatory alternatives, including 
        substitution risks.
            (4) For each final rule, an assessment of the costs and 
        risk reduction or other benefits associated with implementation 
        of, and compliance with, the rule.
            (5) For each final rule, a certification by the head of the 
        agency of each of the following:
                    (A) A certification that the assessment under 
                paragraph (4) is based on an objective and unbiased 
scientific and economic evaluation of all significant and relevant 
information provided to the agency by interested parties relating to 
the costs, risks, and risk reduction or other benefits addressed by the 
rule. Such information shall have been subjected to peer review to the 
extent required by section 3301.
                    (B) A certification that the rule will 
                substantially advance the purpose of protecting human 
                health or the environment, as applicable, against the 
                risk addressed by the rule.
                    (C) A certification that the 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 (1).
                    (D) A certification that there is no regulatory 
                alternative that is allowed by the statute under which 
                the regulation is promulgated that would achieve an 
                equivalent reduction in risk in a more cost-effective 
                manner, along with a brief explanation of why other 
                regulatory alternatives that were considered by the 
                head of the agency were found to be less cost-
                effective.
    (b) Publication.--For each major rule referred to in subsection (a) 
the head of each agency shall publish in a clear and concise manner in 
the Federal Register along with the proposed or final regulation, or 
otherwise make publicly available, the information required to be 
prepared under subsection (a) of this section.
    (c) Definitions.--For purposes of this section:
            (1) Costs.--The term ``costs'' includes the direct and 
        indirect costs to the United States government, costs to State 
        and local governments, and costs to the private sector, of 
        implementing and complying with a regulatory action.
            (2) Major rule.-- The term ``major rule'' means any 
        regulation that is likely to result in one or more of the 
        following:
                    (A) An annual effect on the economy of $25,000,000 
                or more.
                    (B) A major increase in costs or prices for 
                consumers, individual industries, Federal, State, or 
                local government agencies, or geographic regions.
                    (C) Significant adverse effects on competition, 
                employment, investment, productivity, innovation, or on 
                the ability of United States-based enterprises to 
                compete with foreign-based enterprises in domestic or 
                export markets.

                        Subtitle C--Peer Review

SEC. 3301. PEER REVIEW PROGRAM.

    (a) Establishment.--For regulatory programs addressing human 
health, safety, or the environment, the head of each Federal agency 
shall develop a systematic program for peer review of risk assessments 
and economic assessments used by the agency. Such program shall be 
applicable across the agency and--
            (1) shall provide for the creation of peer review panels 
        consisting of independent and external experts who are broadly 
        representative and balanced to the extent feasible;
            (2) may provide for differing levels of peer review 
        depending on the significance or the complexity of the problems 
        or the need for expeditiousness;
            (3) shall not exclude peer reviewers merely because they 
        represent entities that may have a potential interest in the 
        outcome, provided that interest is fully disclosed to the 
        agency; and
            (4) shall provide open opportunity to become part of a peer 
        review panel at a minimum by soliciting nominations through a 
        Federal Register announcement.
    (b) Requirement for Peer Review.--Each Federal agency shall provide 
for peer review of scientific and economic information used for 
purposes of any evaluation under section 3201(a)(5)(A) or for purposes 
of any significant risk or cost assessment prepared in connection with 
a major rule. In addition, the Director of the Office of Management and 
Budget shall order that peer review be provided for any major risk 
assessment or cost assessment that may have a significant impact on 
public policy decisions.
    (c) Contents.--
            (1) In general.--Each peer review under this section shall 
        include a report to the Federal agency concerned with respect 
        to each of the following:
                    (A) An evaluation of the technical, scientific, and 
                economic merit of the data and methods 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.
                    (C) A discussion of the methodology used for the 
                assessment and analysis.
            (2) 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.
            (3) Separation of assessments.--Peer review of human 
        health, safety, environmental, and economic assessments may be 
        separated for purpose of this subtitle.
    (d) Response to Peer Review.--The head of the Federal agency shall 
provide a written response to all significant peer review comments.
    (e) Availability to Public.--All peer review comments or 
conclusions and the agency's responses shall be made available to the 
public and shall be made part of the administrative record for purposes 
of judicial review of any final agency action.
    (f) Previously Reviewed Data and Analysis.--No peer review shall be 
required under this section for any data or analysis which has been 
previously subjected to peer review or for any component of any 
evaluation or assessment previously subjected to peer review.
    (g) National Panels.--The President shall appoint National Peer 
Review Panels to annually review the risk assessment and cost 
assessment practices of each Federal agency for programs designed to 
protect human health, safety, or the environment. The Panel shall 
submit a report to the Congress no less frequently than annually 
containing the results of such review.
    (h) Major Rule Defined.--For purposes of this section, the term 
``major rule'' has the same meaning as provided by section 3201(c) 
except that ``$100,000,000'' shall be substituted for ``$25,000,000''.

   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 of 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:
            ``(32) 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.

    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''.

           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:
``Sec.  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 information 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:
``Sec. 3511. 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;
            ``(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:
``Sec. 611. 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 the 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 rulemaking--
            (1) which affects more than 100 persons; or
            (2) compliance with which will require the expenditure of 
        more than $1,000,000 by any single 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.
    The requirements of this section shall be consistent with, and not 
duplicative of, the requirements of section 3201.
    (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.

    To the extent practicable, 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 Director of the Office of Management and Budget shall submit a 
report to the Congress no later than 24 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. 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--
            (1) substantially delay responding to an imminent danger to 
        person or property; or
            (2) substantially or unreasonably impede a criminal 
        investigation.

         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.

SEC. 8209. RELATION TO CRIMINAL INVESTIGATIONS.

    Nothing in this subtitle shall be construed so as substantially or 
unreasonably to impede a criminal investigation.

     TITLE IX--PRIVATE PROPERTY RIGHTS PROTECTIONS AND COMPENSATION

SEC. 9001. STATEMENT OF PURPOSE.

    It is the purpose of this title to compensate private property 
owners with respect to certain actions that are taken by the Federal 
Government for public purposes and that limit the use of private 
property by property owners.

SEC. 9002. COMPENSATION FOR FEDERAL AGENCY INFRINGEMENT OR DEPRIVATION 
              OF RIGHTS TO PRIVATE PROPERTY.

    (a) Eligibility.--
            (1) In general.--A private property owner is entitled to 
        receive compensation from the United States in accordance with 
        this section for any agency infringement or deprivation of 
        rights to property that is owned by the private property owner.
            (2) Agency infringement or deprivation of rights to 
        property defined.--For purposes of paragraph (1), the term 
        ``agency infringement or deprivation of rights to property'' 
        means a limitation or condition that--
                    (A) is imposed by a final agency action on a use of 
                property that would be lawful but for the agency 
                action, and
                    (B) results in a reduction in the value of the 
                property equal to ten percent or more.
            (3) Circumstances in which compensation not required.--A 
        private property owner shall not be entitled to receive 
        compensation under this subsection for any of the following:
                    (A) A limitation on any action that would 
                constitute a violation of applicable State or local law 
                (including an action that would violate a local zoning 
                ordinance or would constitute a nuisance under any 
                applicable State or local law).
                    (B) A limitation on any use of private property, 
                imposed pursuant to a determination by the President 
                that the use poses or would pose a serious and imminent 
                threat to public health and safety or to the health and 
                safety of workers, or other individuals, lawfully on 
                the property.
                    (C) A limitation imposed pursuant to the Federal 
                navigational servitude.
            (4) Limitation on cumulative amount of compensation.--No 
        payment may be made pursuant to this subsection with respect to 
        property if the sum of such payment and all other payments made 
        pursuant to this subsection with respect to the property would 
        exceed the fair market value of the property (as determined at 
        the time of the payment).
            (5) State or local limitations imposed pursuant to federal 
        mandates.--A limitation or condition shall be considered to be 
        a Federal agency infringement or deprivation of rights to 
        property for purposes of paragraph (1) if it is a consequence 
        of a limitation or condition on the use of the property by the 
        private property owner that is imposed by a State or local 
        government pursuant to an agency action that is intended to, or 
        does, bind the State or local government.
    (b) Request for Compensation.--Within 90 days after receipt of 
notice of an 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 Determination and Offer.--
            (1) In general.--Upon receipt of a request for 
        compensation, submitted in accordance with subsection (b), with 
        respect to an agency action affecting private property as 
        described in subsection (a), the head of the agency that took 
        the action shall determine whether the private property owner 
        submitting the request has demonstrated entitlement to 
        compensation under subsection (a). If the head of the agency 
        finds that the private property owner has so demonstrated, the 
        head of the agency shall offer to compensate the private 
        property owner for the reduction in the value of the property, 
        as demonstrated by the private property owner.
            (2) Timing of determination and offer.--The head of an 
        agency shall make the determination and offer, if any, required 
        by paragraph (1) with respect to a request for compensation not 
        later than 180 days after receiving the request.
    (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 the head of an agency determines, under 
subsection (c), that a private property owner is not entitled to 
compensation under subsection (a), or a private property owner rejects 
an offer made 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 whether the 
request meets the requirements of subsection (a) (if such determination 
is called for by the submission of the property owner) and shall 
determine the amount of compensation to which the property owner is 
entitled under this section, in accordance with subsection (c). 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 whether the property owner is entitled to 
compensation under subsection (a) and 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.
    (g) Nature of Remedy.--
            (1) Prohibition of limitation on other claims.--No 
        provision of this title shall be construed to limit the rights 
        of any person to pursue any claim or cause of action under the 
        Constitution or any other law (including a claim or cause of 
        action concerning personal property).
            (2) Prohibition of use as condition precedent.--Submission 
        of a request for compensation, or receipt of compensation, 
        under this title shall not be a condition precedent for any 
        claim or cause of action under any law.
    (h) Limitation on Double Recovery.--
            (1) Court awards of damages.--Notwithstanding subsection 
        (g), a court may credit a payment made pursuant to subsection 
        (a) for any reduction in the value of property against the 
        amount of damages awarded pursuant to any claim or cause of 
        action, under the Constitution or any other law, that arises 
        from the same reduction in the value of the same property.
            (2) Payments under this title.--The amount awarded pursuant 
        to any claim or cause of action, under the Constitution or any 
        other law, for any reduction in the value of a property shall 
        be credited against the amount of any payment made pursuant to 
        subsection (a) with respect to the same reduction in the value 
        of the same property.
    (i) Source of Payment Funds.--
            (1) Use of agency funds.--Except as provided in paragraphs 
        (2) and (3), and notwithstanding any other provision of law, 
        any payment made pursuant to subsection (a) shall be paid from 
        the annual appropriation of the agency or agencies taking the 
        action for which the payment is required. For the purpose of 
        making such a payment, the head of the agency may transfer or 
        reprogram any funds available to the agency.
            (2) Alternative source of funds.--If the agency taking the 
        action referred to in paragraph (2) or (5) of subsection (a) 
        does not have sufficient funds available to complete the 
        payment required by this section with respect to the action, 
        the Comptroller General of the United States shall identify the 
        most appropriate Federal source of funds to complete the 
        payment and the President shall complete the payment using 
        funds from such source, notwithstanding any other provision of 
        law.
            (3) Land exchange.--In lieu of payment under paragraph (1) 
        or (2), the President may enter into an agreement with the 
        private property owner who is entitled to the compensation for 
        which the payment is required to provide all or part of the 
        compensation by exchanging all or part of the affected private 
        property for property owned by the United States and identified 
        by the President as suitable for such an exchange. The 
        properties transferred as part of such an exchange shall be of 
        equal value, as determined under section 206(d) of the Federal 
        Land Policy and Management Act of 1976 (43 U.S.C. 1716(d)).

SEC. 9003. SEVERABILITY.

    If any provision of this title, or the application thereof to any 
person or circumstance, is held invalid, the remainder of this title 
and the application of such provision to other persons and 
circumstances shall not be affected.

SEC. 9004. DEFINITIONS.

    For purposes of this title:
            (1) Agency.--The term ``agency'' has the meaning given that 
        term in section 551(1) of title 5, United States Code.
            (2) Agency action.--The term ``agency action'' has the 
        meaning given that term in section 551(13) of title 5, United 
        States Code.
            (3) Fair market value.--Unless stated otherwise, the term 
        ``fair market value of the property'' means the fair market 
        value of property determined as of the date on which the 
        private property owner makes a claim under this title with 
        respect to the property.
            (4) Final agency action.--The term ``final agency action'' 
        means an agency action that is intended to or does bind a 
        private property owner with respect to the use of the property. 
        Such term includes but is not limited to the following:
                    (A) Denial of a permit.
                    (B) Issuance of a cease and desist order.
                    (C) Issuance of a statement under section 7(b)(3) 
                of the Endangered Species Act of 1973 (16 U.S.C. 
                1536(b)(3)).
                    (D) Issuance of a permit with conditions.
                    (E) Commencement of a civil or criminal proceeding 
                arising out of failure to secure a permit.
            (5) Private property owner.--The term ``private property 
        owner'' means a person (other than the United States, a 
        department, agency, or instrumentality thereof, or an officer, 
        employee, or agent thereof when acting on behalf of his or her 
        employing authority) that--
                    (A) owns property referred to in paragraph (6)(A); 
                or
                    (B) holds property referred to in paragraph (6)(B).
            (6) Property.--The term ``property'' means--
                    (A) land; and
                    (B) the right to use or receive water.
            (7) Reduction in the value of property.--The term 
        ``reduction in the value of property'' means the difference, if 
        greater than zero, between--
                    (A) the fair market value of property, as 
                determined based on the value of the property if an 
                agency action referred to in paragraph (2) or (5) of 
                section 9002(a), as the case may be, were not 
                implemented; minus
                    (B) the fair market value of property, as 
                determined based on the value of the property if an 
                agency action referred to in paragraph (2) or (5) of 
                section 9002(a), as the case may be, were implemented.
            (8) Use--The term ``use'' means a prior, existing, or 
        potential utilization of property, by the private property 
        owner, which is--
                    (A) predictable; and
                    (B) consistent with the utilization of property of 
                the same general type or with property usage in the 
                geographic area in which the property is located.

     TITLE X--ESTABLISHMENT OF FEDERAL MANDATE BUDGET COST CONTROL

SEC. 10001. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF 1974.

    (a) Federal Regulatory Budget Cost Control System.--Title III of 
the Congressional Budget Act of 1974, as amended by section 4001(a) of 
this Act, is further amended by adding after part B the following new 
part:

             ``PART C--FEDERAL MANDATE BUDGET COST CONTROL

``SEC. 331. 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 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. 332. 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-CBO 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-CBO baseline report 
issued under section 331(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. 333. 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. 334. 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. 335. 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. 10002. PRESIDENT'S ANNUAL BUDGET SUBMISSIONS.

    Section 1105(a) of title 31, United States Code, as amended by 
section 4002 of this Act, is further amended by adding after paragraph 
(32) the following new paragraph:
            ``(33) 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 333 of the Congressional Budget Act of 
        1974 for the budget year and the outyears.''

SEC. 10003. 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) in section 603, as amended by section 4003(2) of this 
        Act, by adding after subsection (d) the following:
    ``(e) 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.''; and
            (2) in section 604(a), as amended by section 4003(3) of 
        this Act--
                    (A) in paragraph (3) by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (4) by striking the period and 
                inserting ``; and''; and
                    (C) by adding after paragraph (4) the following:
            ``(5) 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.''.
    (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 XI--TAXPAYER DEBT BUY-DOWN

SEC. 11001. 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 the date of the enactment of this 
Act.

SEC. 11002. 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 used by the Secretary of the Treasury for purposes of 
paying at maturity, or to redeem or buy before maturity, any obligation 
of the Federal Government included in the public debt (other than an 
obligation held by the Federal Old-Age and Survivors Insurance Trust 
Fund, the Civil Service Retirement and Disability Fund, or the 
Department of Defense Military Retirement Fund). Any obligation which 
is paid, redeemed, or bought with amounts from the Public Debt 
Reduction 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. 11003. 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 one year before the beginning of that session of 
Congress, as estimated by the Department of the Treasury on October 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 enacted after the enactment of this 
section related to the fiscal year subject to the sequestration (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 all direct spending legislation 
enacted after the enactment of this section related to the fiscal year 
subject to the sequestration, as estimated by OMB. If the reduction in 
spending under paragraphs (1) and (2) for a fiscal year is greater than 
the estimated aggregate amount designated under section 6097 of the 
Internal Revenue Code of 1986 respecting that fiscal year, then there 
shall be no sequestration under this section.
    ``(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 and 
                survivors 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 after the item relating 
        to the GAO compliance report the following:
    ``October 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 October 
        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 XII--SMALL BUSINESS INCENTIVES

SEC. 12001. 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 exclusion amount determined in accordance with the 
        following table:

        ``In the case of estates of decedents
                                                         The applicable
           dying, and gifts made, during:
                                                   exclusion amount is:
                1996.................................      $700,000    
                1997.................................      $725,000    
                1998 or thereafter...................     $750,000.    
            ``(2) Cost-of-living adjustments.--In the case of any 
        decedent dying, and gift made, in a calendar year after 1998, 
        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 1997' 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 ``the applicable 
        exclusion amount in effect under section 2010(c) (as adjusted 
        under paragraph (2) thereof) for the calendar year which 
        includes the date of death''.
            (4) Paragraph (2) of section 2001(c) of such Code is 
        amended by striking ``$21,040,000'' and inserting ``the amount 
        at which the effective tax rate under this section is 55 
        percent''.
            (5) Subparagraph (A) of section 2102(c)(3) of such Code is 
        amended by striking ``$192,800'' and inserting ``the applicable 
        credit amount in effect under section 2010(c) for the calendar 
        year which includes the date of death''.
    (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. 12002. 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. 12003. 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. 12004. 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.
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