State Flexibility Clarification Act of 1999 (Public
Law 106-141). The legislation requires additional
explanation when legislation is proposed to cut
federal contributions to state-administered
entitlement programs. If Congress proposes legislation
that would reduce Federal funding for state
entitlement programs, the congressional committee
considering the bill must include in the committee
report an explanation of how the committee intends the
States to implement the reduction in funding, and what
flexibility, if any, the proposed legislation provides
to the States. The bill also requires the
Congressional Budget Office ("CBO") to
analyze and explain how the States could implement any
reductions in Federal funding under existing law if
Congress does not provide the States with any new
flexibility. If the proposed legislation does provide
the States with any additional flexibility, then CBO
must report on whether the savings from the additional
flexibility would offset the reduction in Federal
spending.
This legislation was introduced as H.R. 3257 in the
House by Representative Thomas Reynolds (R-NY) and
consisted of Senate language section 10(b) and (c) of the
"Federalism Accountability
Act of 1999," S. 1214, introduced by Senator
Thompson and approved by the Governmental Affairs
Committee by a vote of 8-2 on August 3, 1999. The
State Flexibility Clarification Act passed the
House on November 16, 1999 by 401-0 and the
Senate on November 19, 1999 by unanimous consent; it
was signed into law on December 7, 1999.
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