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and

(1) be responsible for implementing this Act;

(2) designate an officer (to be known as the

federalism officer) to

(A) manage the implementation of this

Act; and

(B) serve as a liaison to State and local of

ficials and their designated representatives.

(b) NOTICE AND CONSULTATION WITH POTEN10 TIALLY AFFECTED STATE AND LOCAL GOVERNMENT.— 11 Early in the process of developing a rule and before the 12 publication of a notice of proposed rulemaking, the agency 13 shall notify, consult with, and provide an opportunity for 14 meaningful participation by public officials of governments 15 that may potentially be affected by the rule for the pur16 pose of identifying any preemption of State or local gov17 ernment authority or other significant federalism impacts 18 that may result from issuance of the rule. If no notice 19 of proposed rulemaking is published, consultation shall 20 occur sufficiently in advance of publication of an interim 21 final rule or final rule to provide an opportunity for mean22 ingful participation.

(c) FEDERALISM ASSESSMENTS.

(1) IN GENERAL. In addition to whatever other actions the federalism officer may take to

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manage the implementation of this Act, such officer shall identify each proposed, interim final, and final rule having a federalism impact, including each rule

with a federalism impact identified under subsection

(b), that warrants the preparation of a federalism assessment.

(2) PREPARATION-With respect to each such rule identified by the federalism officer, a federalism assessment, as described in subsection (d), shall be prepared and published in the Federal Register at the time the proposed, interim final, and final rule is published.

(3) CONSIDERATION OF ASSESSMENT.—The agency head shall consider any such assessment in all decisions involved in promulgating, implementing, and interpreting the rule.

(4) SUBMISSION TO THE OFFICE OF MANAGEMENT AND BIDGET.-Each federalism assessment shall be included in any submission made to the Of fice of Management and Budget by an agency for re

view of a rule.

(d) CONTENTS.-Each federalism assessment shall

23 include

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(1) a statement on the extent to which the rule

preempts State or local government law, ordinance,

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sons for such preemption;

(2) an analysis of—

(A) the extent to which the rule regulates in an area of traditional State authority; and

(B) the extent to which State or local authority will be maintained if the rule takes effect;

(3) a description of the significant impacts of the rule on State and local governments;

(4) any measures taken by the agency, including the consideration of regulatory alternatives, to minimize the impact on State and local governments;

and

(5) the extent of the agency's prior consultation with public officials, the nature of their concerns,

and the extent to which those concerns have been met.

19 (e) PUBLICATION. For any applicable rule, the 20 agency shall include a summary of the federalism assess21 ment prepared under this section in a separately identified 22 part of the statement of basis and purpose for the rule 23 as it is to be published in the Federal Register. The sum24 mary shall include a list of the public officials consulted

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1 and briefly describe the views of such officials and the

2 agency's response to such views

3 SEC. 8. PERFORMANCE MEASURES.

4

Section 1115 of title 31, United States Code, is

5 amended by adding at the end the following:

6 "(g) The head of an agency may not include in any 7 performance plan under this section any agency activity 8 that is a State-administered Federal grant program, un9 less the performance measures for the activity are deter10 mined in cooperation with public officials as defined under 11 section 4 of the Federalism Accountability Act of 1999. ". 12 SEC. 9. CONGRESSIONAL BUDGET OFFICE PREEMPTION 13

REFORT.

14 (a) OFFICE OF MANAGEMENT AND BUDGET INFOR15 MATION.-Not later than the expiration of the calendar 16 year beginning after the effective date of this Act, and 17 every year thereafter, the Director of the Office of Man 18 agement and Budget shall subunit to the Director of the 19 Congressional Budget Office information describing in20 terim final rules and final rules issued during the pre21 ceding calendar year that preempt State or local govern. 22 ment authority.

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(b) CONGRESSIONAL RESEARCH SERVICE INFORMA24 TION. Not later than the expiration of the calendar year 25 beginning after the effective date of this Act, and every

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1 year thereafter, the Director of the Congressional Re2 search Service shall submit to the Director of the Congres3 sional Budget Office information describing court deci4 sions issued during the preceding calendar year that pre5 empt State or local government authority.

(c) CONGRESSIONAL BUDGET OFFICE REPORT.—

(1) IN GENERAL.-After each session of Congress, the Congressional Budget Office shall prepare a report on the extent of Federal preemption of State or local government authority enacted into law or adopted through judicial or agency interpretation of Federal statutes during the previous session of Congress.

(2) CONTENT.-The report under paragraph (1) shall contain

(A) a list of Federal statutes preempting, in whole or in part, State or local government authority;

(B) a summary of legislation reported from committee preempting, in whole or in part,

State or local government authority;

(C) a summary of rules of agencies preempting, in whole or in part, State and local

government authority; and