[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1376 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                S. 1376

 To terminate unnecessary and inequitable Federal corporate subsidies.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 1, 1995

  Mr. McCain (for himself, Mr. Thompson, Mr. Kerry, Mr. Feingold, Mr. 
 Kennedy, and Mr. Coats) introduced the following bill; which was read 
      twice and referred to the Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
 To terminate unnecessary and inequitable Federal corporate subsidies.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

 TITLE XX--CORPORATE SUBSIDY REVIEW, REFORM AND TERMINATION COMMISSION

SECTION 2001. SHORT TITLE AND PURPOSE.

    (a) Short Title.--This title may be cited as the ``Corporate 
Subsidy Review, Reform and Termination Act of 1995''.
    (b) Purpose.--The purpose of this title is to establish a fair 
process that will result in the timely review, reform, and elimination 
of unnecessary subsidies, benefits, or financial advantages provided by 
the Federal Government to individuals or organizations engaged in 
profitmaking enterprises.

SEC. 2002. THE COMMISSION.

    (a) Establishment.--There is established an independent commission 
to be known as the ``Corporate Subsidy Termination Commission''. The 
Commission shall be composed of 8 members appointed as provided in 
subsection (c)(3).
    (b) Duties.--The duties of the Commission are to examine Federal 
programs based on the following criteria:
            (1) To examine the programs of the Federal Government and 
        identify such programs that provide direct payments, services, 
        or benefits to entities and industries engaged in profitmaking 
        enterprise. In reviewing such programs the Commission shall 
        determine if such payment, service, or benefit--
                    (A) predominantly serves the pecuniary interests of 
                the specific entity or industry rather than a clear and 
                compelling public interest;
                    (B) provides an unfair competitive advantage to one 
                entity within an industry or market segment, or to one 
                particular industry; or
                    (C) has the effect of creating any other 
                inequitable federal direct or indirect subsidy.
            (2) To examine the tax system of the Federal Government to 
        determine if current laws and practices result in--
                    (A) inequitable tax advantages that provide 
                financial benefits to an entity or industry in excess 
                of that intended by the applicable law;
                    (B) benefits to an entity or entities that are 
                disproportionate to those available to similar entities 
                within the same industry; or
                    (C) benefits to an industry or industries that are 
                disproportionate to those available to comparably sized 
                industries that are not eligible for such benefits, and 
                which create an undue tax advantage for such 
                industries; or
                    (D) the creation of any other inequitable tax 
                benefit or advantage.
            (3) To report programs which satisfy any of the conditions 
        stated in paragraph (1) or paragraph (2) to the Congress with 
        specific recommendations for--
                    (A) termination;
                    (B) modification; or
                    (C) retention.
            (4) Exclusion.--This Act is not intended to result in the 
        creation of new programs or taxes, and the Commission 
        established in this section shall limit its activities to 
        reviewing existing programs or tax codes with the goal of 
        ensuring fairness and equity in the operation and application 
        thereof.
    (c) Appointment.--
            (1) Nominations.--The President shall transmit to the 
        Senate the nominations for appointment to the Commission by no 
later than January 31, 1997.
            (2) Failure to appoint.--If the President does not transmit 
        to Congress the nominations for appointment to the Commission 
        on or before the date specified in paragraph (1), the process 
        established under this Act shall be terminated.
            (3) Members.--In selecting individuals for nominations for 
        appointments to the Commission, the President should consult 
        with--
                    (A) the Speaker of the House of Representatives 
                concerning the appointment of 2 members;
                    (B) the majority leader of the Senate concerning 
                the appointment of 2 members;
                    (C) the minority leader of the House of 
                Representatives concerning the appointment of 1 member; 
                and
                    (D) the minority leader of the Senate concerning 
                the appointment of 1 member.
            (4) Chairman.--At the time the President nominates 
        individuals for appointment to the Commission the President 
        shall designate 1 such individual who shall serve as chairman 
        of the Commission.
            (5) Background.--The members should represent a broad array 
        of expertise covering, to the extent practical, all subject 
        matter, programs and policies the Commission is likely to 
        review.
    (d) Terms.--Each member of the Commission including the Chairman 
shall serve until the termination of the Commission, not later than 
December 31, 1997.
    (e) Meetings.--
            (1) Initial meeting.--The Commission shall meet during 
        calendar year 1997.
            (2) Open meetings.--Each meeting of the Commission, other 
        than meetings in which classified information is to be 
        discussed, shall be open to the public. All proceedings, 
        information, and deliberations of the Commission shall be 
        available, upon request, to the chairman and ranking member of 
        the relevant committees of Congress.
    (f) Vacancies.--A vacancy on the Commission shall be filled in the 
same manner as the original appointment, but the individual appointed 
to fill the vacancy shall serve only for the unexpired portion of the 
term for which the individual's predecessor was appointed.
    (g) Pay and Travel Expenses.--
            (1) Pay.--Each Commissioner, other than the chairman, shall 
        be paid at a rate equal to the daily equivalent of the minimum 
        annual rate of basic pay for level IV of the Executive Schedule 
        under section 5315 of title 5, United States Code, for each day 
        (including travel time) during which the member is engaged in 
        the actual performance of duties vested in the Commission.
            (2) Chairman.--The chairman shall be paid for each day 
        referred to in paragraph (1) at a rate equal to the daily 
        equivalent of the minimum annual rate of basic pay payable for 
        level III of the Executive Schedule under section 5314 of title 
        5, United States Code.
            (3) Travel expenses.--Members shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
    (h) Director of Staff.--
            (1) Qualifications.--The Chairman shall, without regard to 
        section 5311(b) of title 5, United States Code, appoint a 
        Director who has not served in any of the entities that the 
        Commission intends to review during the 1 year period preceding 
        the date of such appointment.
            (2) Pay.--The Director shall be paid at the rate of basic 
        pay payable for level IV of the Executive Schedule under 
        section 5325 of title 5, United States Code.
    (i) Staff.--
            (1) Additional personnel.--Subject to paragraphs (2) and 
        (4), the Director, with the approval of the Commission, may 
        appoint and fix the pay of additional personnel.
            (2) Appointments.--The Director may make such appointments 
        without regard to the provisions of title 5, United States 
        Code, governing appointments in the competitive service, and 
        any personnel so appointed may be paid without regard to 
the provisions of chapter 51 and subchapter III of chapter 53 of that 
title relating to classification and General Schedule pay rates, except 
that an individual so appointed may not receive pay in excess of the 
annual rate of basic pay payable for GS-18 of the General Schedule.
            (3) Detailees.--Upon request of the Director, the head of 
        any Federal department or agency may detail any of the 
        personnel of that department or agency to the Commission to 
        assist the Commission in accordance with an agreement entered 
        into with the Commission.
            (4) Restrictions on personnel and detailees.--The following 
        restrictions shall apply to personnel and detailees of the 
        Commission:
                    (A) Not more than one-third of the personnel 
                detailed to the Commission may be on detail from 
                Federal agencies that deal directly or indirectly with 
                the programs and policies the Commission intends to 
                review.
                    (B) Not more than one-fifth of the professional 
                analysts of the Commission staff may be persons 
                detailed from a Federal agency that deals directly or 
                indirectly with the programs or policies the Commission 
                intends to review.
                    (C) No person detailed from a Federal agency to the 
                Commission may be assigned as the lead professional 
                analyst with respect to an entity the Commission 
                intends to review if the person has been involved in 
                regulatory or policy-making decisions affecting such an 
                entity in the 12 months preceding this assignment.
                    (D) A person may not be detailed from a Federal 
                agency to the Commission if, within 12 months before 
                the detail is to begin, that person participated 
                personally and substantially in any matter within that 
                particular agency concerning the preparation of 
                recommendations under this Act.
                    (E) No member of a Federal agency, and no officer 
                or employee of a Federal agency, may--
                            (i) prepare any report concerning the 
                        effectiveness, fitness, or efficiency of the 
                        performance on the staff of the Commission of 
                        any person detailed from a Federal agency to 
                        that staff;
                            (ii) review the preparation of such report; 
                        or
                            (iii) approve or disapprove such a report.
                    (F) There may not be more than 25 persons on the 
                staff at any one time.
                    (G) No member of a Federal agency and no employee 
                of a Federal agency may serve as a Commissioner or as a 
                paid member of the staff.
            (5) Assistance.--The Comptroller General of the United 
        States shall provide assistance, including the detailing of 
        employees, to the Commission in accordance with an agreement 
        entered into with the Commission.
    (j) Other Authority.--
            (1) Experts and consultants.--The Commission may procure by 
        contract, to the extent funds are available, the temporary or 
        intermittent services of experts or consultants pursuant to 
        section 3109 of title 5, United States Code.
            (2) Leasing.--The Commission may lease space and acquire 
        personal property to the extent that funds are available.
    (k) Funding.--
            (1) In general.--There are authorized to be appropriated to 
        the Commission such funds as are necessary to carry out its 
        duties under this part. Such funds shall remain available until 
        expended.
            (2) Appropriation.--
                    (A) Funding requirement.--Such funds as are deemed 
                necessary to support the operation of the Commission 
                shall be appropriated in the Legislative Branch 
                Appropriations Act.
                    (B) Failure to appropriate.--If no funds are 
                appropriated to the Commission by the end of the second 
                session of the 104th Congress, the Secretary of the 
                Treasury may transfer, during calendar year 1997, to 
                the Commission funds from the general fund. Such funds 
                shall remain available until expended. Funds not 
                expended shall be returned to the Treasury upon 
                termination of the Commission.
    (l) Termination.--The Commission shall terminate on December 31, 
1997.
    (m) Prohibition Against Restricting Communications.--Section 1034 
of title 10, and section 7211 of title 5, United States Code, shall 
apply with respect to communications with the Commission.

SEC. 2003. PROCEDURE FOR MAKING RECOMMENDATIONS TO TERMINATE CORPORATE 
              SUBSIDIES.

    (a) Agency Plan.--
            (1) In general.--No later than the date budget documents 
        are submitted to Congress in January 1997 in support of the 
        budgets of each Federal agency or department, the head of each 
        agency or department shall include a list identifying all 
        programs or policies that in their own view satisfy the 
        conditions stated in Section 2002(b) (1) and (2).
            (2) Contents.--Such a list shall include--
                    (A) a detailed description of each program or 
                policy in question;
                    (B) a statement detailing the magnitude of the 
                consistency of the program or policy with section 
                2002(b)(1) and (2); and
                    (C) a recommendation to the Commission regarding 
                actions to be taken under section 2002(b)(3).
        Such list shall also be submitted to the Commission upon the 
        confirmation of the Chairman.
    (b) Review and Recommendations by the Commission.--
            (1) Review and hearings.--After receiving the 
        recommendations from the agency pursuant to subsection (a), the 
        Commission shall conduct public hearings on the 
        recommendations. All testimony before the Commission at a 
        public hearing conducted under this paragraph shall be 
        presented under oath.
            (2) Report of commission.--
                    (A) Report to president.--The Commission shall, by 
                no later than July 1, 1997, transmit to the President a 
                report containing the Commission's findings and 
                recommendations for termination, modification, or 
                retention of programs and policies reviewed by the 
                commission.
                    (B) Changes in recommendations.--Subject to 
                subparagraph (A), in making its recommendations, the 
                Commission may make changes in any of the 
                recommendations made by an agency if the Commission 
                determines that the agency deviated substantially from 
                the criteria in section 2002(b) (1) and (2).
                    (C) Changes.--In the case of a change in the 
                recommendations made by the agencies, the Commission 
                may make the change only if the Commission--
                            (i) makes the determination required by 
                        subparagraph (B); and
                            (ii) conducts public hearings on the 
                        proposed changes.
                    (D) Application.--Subparagraph (C) shall apply to a 
                change by the Commission in an agency's recommendation 
                that would--
                            (i) add or delete a program or policy to 
                        the list recommended for termination;
                            (ii) add or delete a program or policy to 
                        the list recommended for modification; or
                            (iii) increase or decrease the extent of a 
                        recommendation to modify a program included in 
                        an agency's recommendation.
            (3) Justification.--The Commission shall explain and 
        justify in its report submitted to the President pursuant to 
        paragraph (2) any recommendation made by the Commission that is 
        different from a recommendation made by an agency pursuant to 
        subsection (a).
            (4) Report to congress.--After July 1, 1997, when the 
        Commission transmits recommendations to the President the 
        Commission shall promptly provide, upon request, to any Member 
        of Congress information used by the Commission in making its 
        recommendations.
            (5) Comptroller general.--The Comptroller General of the 
        United States shall--
                    (A) assist the Commission, to the extent requested, 
                in the Commission's review and analysis of the 
                recommendations made by agencies pursuant to section 
                2003(a); and
                    (B) by no later than April 15, 1997, transmit to 
                the Congress and to the Commission a report containing 
                a detailed analysis of the agencies' recommendations.
    (c) Review by the President.--
            (1) In general.--The President shall, not later than July 
        15, 1997 transmit to the Commission and to the Congress a 
        report containing the President's approval or disapproval of 
        the Commission's recommendations submitted under subsection 
        (b).
            (2) Approval.--If the President approves all the 
        recommendations of the Commission, the President shall transmit 
        a copy of such recommendations to the Congress, together with a 
        certification of such approval.
            (3) Disapproval.--If the President disapproves the 
        recommendations of the Commission in whole or in part, the 
        President shall transmit to the Commission and the Congress the 
        reasons for that disapproval. The Commission shall then 
        transmit to the President, not later than August 15, 1997, a 
        revised list of recommendations.
            (4) Revision.--If the President approves all of the revised 
        recommendations of the Commission transmitted to the President 
        under paragraph (3), the President shall transmit a copy of 
        such revised recommendations to the Congress, together with a 
        certification of such approval.
            (5) Approval of entire package.--The President may only 
        submit an approval certificate that pertains to the entire 
        package of recommendations submitted by the Commission, 
        pursuant to paragraph (b)(2) or (c)(3).
            (6) Failure to transmit.--If the President does not 
        transmit to the Congress an approval and certification 
        described in paragraph (2) or (4) by September 1, 1997, the 
        process established under this Act shall be terminated.

SEC. 2004. CONGRESSIONAL CONSIDERATION.

    (a) Presidential Special Message.--After receiving the 
recommendations of the Commission, if the President chooses to forward 
them to the Congress consistent with the guidelines stated in section 
2003(c), such recommendations shall be forwarded in legislative form 
for congressional action, with information specifying--
            (1) the reasons and justifications for the recommendations;
            (2) to the maximum extent practicable, the estimated 
        fiscal, economic, and budgetary impact of accepting the 
        recommendations;
            (3) the amount of projected savings resulting from each 
        recommendation; and
            (4) all actions, circumstances, and considerations relating 
        to or bearing upon the recommendations and to the maximum 
        extent practicable, the estimated effect of the recommendations 
        upon the policies and programs for which they are recommended.
    (b) Transmission of Recommendations to House and Senate.--
            (1) Submission to congress.--The recommendations submitted 
        by the President to the Congress under this Act shall be 
        submitted to the House of Representatives and the Senate on the 
        same day, and shall be delivered to the Clerk of the House of 
        Representatives if the House is not in session, and the 
        Secretary of the Senate if the Senate is not in session. The 
        recommendations shall be delivered in legislative form and 
        shall be printed as a document in each House.
            (2) Federal register.--Any recommendations transmitted 
        under this Act shall be printed in the first issue of the 
        Federal Register after such transmittal.
    (c) Referral to Committee.--
            (1) In general.--The recommendations shall be referred to 
        the appropriate committees of the House of Representatives and 
        the Senate.
            (2) Discharge.--If, after 20 days, any committees to which 
        the recommendations have been referred have not reported a bill 
        to the appropriate house with recommendations, those committees 
        will be automatically discharged, and the sections of the bill 
        which were referred to those committees in the form submitted 
        by the President, will be placed on the legislative calender of 
        the appropriate House.
    (d) Procedure in House of Representatives After Report of 
Committee; Debate.--
            (1) Motion to consider.--When the relevant committees of 
        the House of Representatives have reported a bill under this 
        title, it is in order at any time after the fifth day 
        (excluding Saturdays, Sundays, and legal holidays) following 
        the day on which the reports upon such legislation by the 
        relevant committees have been available to Members of the House 
        to move to proceed to the consideration of the legislation. The 
        motion is highly privileged and is not debatable. An amendment 
        to the motion is not in order, and it is not in order to move 
        to reconsider the vote by which the motion is agreed to or 
        disagreed to.
            (2) Debate.--General debate on a bill in the House of 
        Representatives shall be limited to not more than 10 hours, 
        which shall be divided equally between the majority and 
        minority parties. A motion further to limit debate is not 
        debatable. A motion to postpone debate is not in order. A 
        motion to recommit the bill is not in order, and it is not in 
        order to move to reconsider the vote by which the bill is 
        agreed to or disagreed to.
            (3) Terms of consideration.--Consideration of a bill by the 
        House of Representatives shall be in the Committee of the 
        Whole, and the legislation shall be considered for amendment 
        under the five-minute rule in accordance with the applicable 
        provisions of rule XXIII of the Rules of the House of 
        Representatives. After the committee rises and reports the bill 
        back to the House, the previous question shall be considered as 
        ordered on the bill and any amendments thereto to final passage 
        without intervening motion.
            (4) Limit on debate.--Debate in the House of 
        Representatives on the conference report on a bill shall be 
        limited to not more than 5 hours, which shall be divided 
        equally between the majority and minority parties. A motion 
        further to limit debate is not debatable. A motion to recommit 
        the conference report is not in order, and it is not in order 
        to move to reconsider the vote by which the conference report 
is agreed to or disagreed to. A motion to postpone is not in order.
            (5) Appeals.--Appeals from decisions of the Chair relating 
        to the application of the Rules of the House of Representatives 
        to the procedure relating to a bill shall be decided without 
        debate.
    (e) Procedure in Senate After Report of Committee; Debate; 
Amendments.--
            (1) Debate on bill.--Debate in the Senate on a bill under 
        this title, and all amendments thereto and debatable motions 
        and appeals in connection therewith, shall be limited to not 
        more than 20 hours. The time shall be equally divided between, 
        and controlled by, the majority leader and the minority leader 
        or their designees.
            (2) Debate on amendments.--Debate in the Senate on any 
        amendment to a bill shall be limited to 1 hour, to be equally 
        divided between, and controlled by, the mover and the manager 
        of the bill, and debate on any amendment to an amendment, 
        debatable motion, or appeal shall be limited to 30 minutes, to 
        be equally divided between, and controlled by, the mover and 
        the manager of the bill, except that in the event the manager 
        of the concurrent resolution is in favor of any such amendment, 
        motion, or appeal, the time in opposition thereto shall be 
        controlled by the minority leader or his designee.
            (3) Limit of debate.--A motion to further limit debate is 
        not debatable. A motion to recommit is not in order. A motion 
        to postpone debate is not in order.
            (4) Action on conference reports in the senate.--
                    (A) Motion to proceed.--A motion to proceed to the 
                consideration of the conference report on a bill may be 
                made even though a previous motion to the same effect 
                has been disagreed to.
                    (B) Time limitation.--During the consideration in 
                the Senate of the conference report (or a message 
                between Houses) on a bill, and all amendments in 
                disagreement, and all amendments thereto, and debatable 
                motions and appeals in connection therewith, debate 
                shall be limited to 5 hours, to be equally divided 
                between, and controlled by, the majority leader and 
                minority leader or their designees. Debate on any 
                debatable motion or appeal related to the conference 
                report (or a message between Houses) shall be limited 
                to 30 minutes, to be equally divided between, and 
                controlled by, the mover and the manager of the 
                conference report (or a message between Houses).
                    (C) Defeat of report.--Should the conference report 
                be defeated, debate on any request for a new conference 
                and the appointment of conferees shall be limited to 1 
                hour, to be equally divided between, and controlled by, 
                the manager of the conference report and the minority 
                leader or his designee, and should any motion be made 
                to instruct the conferees before the conferees are 
                named, debate on such motion shall be limited to one-
                half hour, to be equally divided between, and 
                controlled by, the mover and the manager of the 
                conference report. Debate on any amendment to any such 
                instructions shall be limited to 20 minutes, to be 
                equally divided between and controlled by the mover and 
                the manager of the conference report. In all cases when 
                the manager of the conference report is in favor of any 
                motion, appeal, or amendment, the time in opposition 
                shall be under the control of the minority leader or 
                his designee.
                    (D) Amendments in disagreement.--In any case in 
                which there are amendments in disagreement, time on 
                each amendment shall be limited to 30 minutes, to be 
                equally divided between, and controlled by, the manager 
                of the conference report and the minority leader or his 
                designee.
    (f) Rules of the Senate and House.--This section is enacted by 
Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a resolution described in subsection 
        (a), and it supersedes other rules only to the extent that it 
        is inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules so far as relating to the 
        procedure of that House at any time, in the same manner, and to 
        the same extent as in the case of any other rule of that House.
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