[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1226 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                S. 1226

                To dismantle the Department of Commerce.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 1997

   Mr. Abraham (for himself, Mr. Brownback, Mr. Kyl, Mr. Hagel, Mr. 
  Allard, Mr. Faircloth, Mr. Hutchinson, Mr. Nickles, and Mr. Gramm) 
introduced the following bill; which was read twice and referred to the 
                   Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
                To dismantle the Department of Commerce.

    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 ``Department of Commerce Dismantling 
Act''.

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--ABOLISHMENT OF DEPARTMENT OF COMMERCE

Sec. 101. Definitions.
Sec. 102. Abolishment of Department of Commerce.
Sec. 103. Resolution and termination of Department functions.
Sec. 104. Responsibilities of the Director of the Office of Management 
                            and Budget.
Sec. 105. Personnel.
Sec. 106. Plans and reports.
Sec. 107. General Accounting Office audit and access to records.
Sec. 108. Conforming amendments.
Sec. 109. Privatization framework.
Sec. 110. Priority placement programs for Federal employees affected by 
                            a reduction in force attributable to this 
                            Act.
Sec. 111. Funding reductions for transferred functions.
     TITLE II--DISPOSITION OF PROGRAMS, FUNCTIONS, AND AGENCIES OF 
                         DEPARTMENT OF COMMERCE

Sec. 201. Economic development.
Sec. 202. Technology Administration.
Sec. 203. Reorganization of the Bureau of the Census and the Bureau of 
                            Economic Analysis.
Sec. 204. Terminated functions of National Telecommunications and 
                            Information Administration.
Sec. 205. Terminations and transfers.
Sec. 206. National Oceanic and Atmospheric Administration.
Sec. 207. Miscellaneous terminations; moratorium on program activities.
Sec. 208. Effective date.
     TITLE III--ESTABLISHMENT OF UNITED STATES TRADE ADMINISTRATION

                     Subtitle A--General Provisions

Sec. 301. Definitions.
             Subtitle B--United States Trade Administration

                        Chapter 1--Establishment

Sec. 311. Establishment of the United States Trade Administration.
Sec. 312. Functions of the Trade Representative.
                          Chapter 2--Officers

Sec. 321. Deputy United States Trade Representatives.
Sec. 322. Assistant Administrators.
Sec. 323. General Counsel.
Sec. 324. Inspector General.
Sec. 325. Chief Financial Officer.
            Chapter 3--Transfers to the Trade Administration

Sec. 331. Office of the United States Trade Representative.
Sec. 332. Transfers from the Department of Commerce.
Sec. 333. Trade and Development Agency.
Sec. 334. Export-Import Bank.
Sec. 335. Overseas Private Investment Corporation.
Sec. 336. Consolidation of export promotion and financing activities.
Sec. 337. Functions related to textile agreements.
                  Chapter 4--Administrative Provisions

Sec. 341. Personnel provisions.
Sec. 342. Delegation and assignment.
Sec. 343. Succession.
Sec. 344. Reorganization.
Sec. 345. Rules.
Sec. 346. Funds transfer.
Sec. 347. Contracts, grants, and cooperative agreements.
Sec. 348. Use of facilities.
Sec. 349. Gifts and bequests.
Sec. 350. Working capital fund.
Sec. 351. Service charges.
Sec. 352. Seal of office.
                      Chapter 5--Related Agencies

Sec. 361. Interagency trade organization.
Sec. 362. National Security Council.
Sec. 363. International Monetary Fund.
                    Chapter 6--Conforming Amendments

Sec. 371. Amendments to general provisions.
Sec. 372. Repeals.
Sec. 373. Conforming amendments relating to Executive Schedule 
                            positions.
                        Chapter 7--Miscellaneous

Sec. 381. Effective date.
Sec. 382. Interim appointments.
Sec. 383. Funding reductions resulting from reorganization.
       TITLE IV--UNITED STATES PATENT AND TRADEMARK ORGANIZATION

      Subtitle A--United States Patent and Trademark Organization

Sec. 401. Short title.
  Chapter 1--Establishment of the United States Patent and Trademark 
                              Organization

Sec. 411. Establishment of the United States Patent and Trademark 
                            Organization as a Government corporation.
Sec. 412. Powers and duties.
Sec. 413. Organization and management.
Sec. 414. United States Patent Office.
Sec. 415. United States Trademark Office.
Sec. 416. Suits by and against the Organization.
Sec. 417. Funding.
Sec. 418. Transfers.
Sec. 419. Use of Organization name.
            Chapter 2--Effective Date; Technical Amendments

Sec. 431. Effective date.
Sec. 432. Technical and conforming amendments.
          Subtitle B--Early Publication of Patent Applications

Sec. 441. Short title.
Sec. 442. Early publication.
Sec. 443. Time for claiming benefit of earlier filing date.
Sec. 444. Provisional rights.
Sec. 445. Prior art effect of published applications.
Sec. 446. Cost recovery for publication.
Sec. 447. Conforming changes.
Sec. 448. Last day of pendency of provisional application.
Sec. 449. Effective date.
                  Subtitle C--Patent Term Restoration

Sec. 451. Patent term restoration authority.
Sec. 452. Further examination of patent applications.
Sec. 453. Technical clarification.
Sec. 454. Effective date.
               Subtitle D--Prior Domestic Commercial Use

Sec. 461. Short title.
Sec. 462. Defense to patent infringement based on prior domestic 
                            commercial use.
Sec. 463. Effective date and applicability.
                Subtitle E--Patent Reexamination Reform

Sec. 471. Short title.
Sec. 472. Definitions.
Sec. 473. Reexamination procedures.
Sec. 474. Conforming amendments.
Sec. 475. Report to Congress.
Sec. 476. Effective date.
              Subtitle F--Miscellaneous Patent Provisions

Sec. 481. Provisional applications.
Sec. 482. International applications.
Sec. 483. Access to electronic patent information.
Sec. 484. Certain limitations on damages for patent infringement not 
                            applicable.
Sec. 485. Plant patents.
Sec. 486. Electronic filing.
Sec. 487. Study and report on biological deposits in support of 
                            biotechnology patents.
                   TITLE V--STATISTICAL CONSOLIDATION

                     Subtitle A--General Provisions

Sec. 501. Findings.
Sec. 502. Sense of Congress.
Sec. 503. Definitions.
      Subtitle B--Establishment of the Federal Statistical Service

Sec. 511. Establishment.
Sec. 512. Principal officers.
Sec. 513. Federal Council on Statistical Policy.
             Subtitle C--Transfers of Functions and Offices

Sec. 521. Transfer of the Bureau of Labor Statistics.
Sec. 522. Transfer date.
                 Subtitle D--Administrative Provisions

Sec. 531. Officers and employees.
Sec. 532. Experts and consultants.
Sec. 533. Acceptance of voluntary services.
Sec. 534. General authority.
Sec. 535. Delegation.
Sec. 536. Reorganization.
Sec. 537. Contracts.
Sec. 538. Regulations.
Sec. 539. Seal.
Sec. 540. Annual report.
                       Subtitle E--Miscellaneous

Sec. 541. Incidental transfers.
Sec. 542. References.
Sec. 543. Proposed changes in law.
Sec. 544. Transition.
Sec. 545. Interim appointments.
Sec. 546. Conforming amendments.
                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. References.
Sec. 602. Exercise of authorities.
Sec. 603. Savings provisions.
Sec. 604. Transfer of assets.
Sec. 605. Delegation and assignment.
Sec. 606. Authority of Director of the Office of Management and Budget 
                            with respect to functions transferred.
Sec. 607. Certain vesting of functions considered transfers.
Sec. 608. Availability of existing funds.
Sec. 609. Definitions.
Sec. 610. Conforming amendments.

             TITLE I--ABOLISHMENT OF DEPARTMENT OF COMMERCE

SEC. 101. DEFINITIONS.

    For purposes of this title, the following definitions apply:
            (1) Department.--The term ``Department'' means the 
        Department of Commerce.
            (2) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (3) Office.--The term ``Office'' means the Office of 
        Management and Budget.

SEC. 102. ABOLISHMENT OF DEPARTMENT OF COMMERCE.

    (a) Abolishment of Department.--Effective on the applicable date 
specified in subsection (c), the Department of Commerce is abolished.
    (b) Transfer of Department Functions to Office of Management and 
Budget.--Except as otherwise provided in this Act, all functions that 
on the day before the applicable date specified in subsection (c) are 
authorized to be performed by the Secretary of Commerce, any other 
officer or employee of the Department acting in that capacity, or any 
agency or office of the Department, are transferred to the Director 
effective on that date.
    (c) Abolishment Date.--The date of abolishment of the Department is 
the earlier of--
            (1) the last day of the 6-month period beginning on the 
        date of enactment of this Act; or
            (2) September 30, 1998.

SEC. 103. RESOLUTION AND TERMINATION OF DEPARTMENT FUNCTIONS.

    (a) Resolution of Functions.--During the period beginning on the 
date of enactment of this Act and ending on the date specified in 
subsection (c)--
            (1) the disposition and resolution of functions of the 
        Department shall be completed in accordance with this Act; and
            (2) the Director shall resolve all functions that are 
        transferred to the Director under section 102(b) and are not 
        otherwise continued under this Act.
    (b) Termination of Functions.--All functions that are transferred 
to the Director under section 102(b) that are not otherwise continued 
by this Act shall terminate on the date specified in subsection (c).
    (c) Functions Termination Date.--The date of termination of 
functions referred to in subsections (a) and (b) is the last day of the 
3-year period beginning on the date of enactment of this Act.

SEC. 104. RESPONSIBILITIES OF THE DIRECTOR OF THE OFFICE OF MANAGEMENT 
              AND BUDGET.

    (a) In General.--The Director shall be responsible for the 
implementation of this title, including--
            (1) the administration, during the period specified in 
        section 103(c), of all functions transferred to the Director 
        under section 102(b);
            (2) the administration, during the period specified in 
        section 103(a), of any outstanding obligations of the Federal 
        Government under any programs terminated by this Act; and
            (3) taking any other action that may be necessary to 
        complete any outstanding affairs of the Department before the 
        end of the period specified in section 103(a).
    (b) Delegation of Functions.--
            (1) In general.--Except as provided in paragraph (2), the 
        Director may, to the extent that the Director determines that 
        such delegation is appropriate to carry out this title, 
        delegate to any officer of the Office or to any other Federal 
        department or agency head the performance of the functions of 
        the Director under this title.
            (2) Exception.--The Director may not delegate the planning 
        and reporting responsibilities under section 106.
    (c) Transfer of Assets and Personnel.--In connection with any 
delegation of functions under subsection (b), the Director may 
transfer, within the Office or to the department or agency concerned, 
such assets, funds, personnel, records, and other property relating 
to the delegated function as the Director determines to be appropriate.
    (d) Authorities of the Director.--For purposes of performing the 
functions of the Director under this title, the Director may--
            (1) enter into contracts;
            (2) employ experts and consultants in accordance with 
        section 3109 of title 5, United States Code, at rates for 
        individuals not to exceed the per diem rate equivalent to the 
        rate for level IV of the Executive Schedule; and
            (3) utilize, on a reimbursable basis, the services, 
        facilities, and personnel of other Federal agencies.

SEC. 105. PERSONNEL.

    Effective on the date specified in section 102(c), there is 
transferred to the Office any individual who--
            (1) on the day before that date, was an officer or employee 
        of the Department; and
            (2) in the capacity as an officer or employee of the 
        Department, performed functions that are transferred to the 
        Director under section 102(b).

SEC. 106. PLANS AND REPORTS.

    (a) Initial Implementation Plan.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Director shall submit a report to 
        Congress and the President that specifies actions that have 
        been taken and actions that have not been taken but are 
        necessary--
                    (A) to resolve the programs and functions 
                terminated in this Act on the date of enactment of this 
                Act; and
                    (B) to implement the additional transfers and other 
                program dispositions provided for in this Act.
            (2) Contents.--The report in paragraph (1) shall include--
                    (A) recommendations for any legislation necessary 
                for the implementation of the abolishments, transfers, 
                terminations, and other dispositions of programs and 
                functions under this Act; and
                    (B) a description of actions planned and taken to 
                comply with limitations imposed by this Act on spending 
                for continued functions.
    (b) Annual Status Reports.--At the end of the first full fiscal 
year following the date of enactment of this Act and at the end of each 
of the 2 following fiscal years, the Director shall submit a report, 
through the President, to Congress that--
            (1) specifies the status and progress of actions taken to 
        implement this Act and to wind up the affairs of the Department 
        of Commerce by the functions termination date specified in 
        section 103(c);
            (2) includes any recommendations for legislation that the 
        Director considers appropriate; and
            (3) describes actions taken to comply with limitations 
        imposed by this Act on spending for continued functions.
    (c) GAO Reports.--Not later than 60 days after the issuance of a 
report under subsection (a) or (b), the Comptroller General of the 
United States shall submit to Congress a report that--
            (1) evaluates the report; and
            (2) includes any recommendations the Comptroller General 
        considers appropriate.

SEC. 107. GENERAL ACCOUNTING OFFICE AUDIT AND ACCESS TO RECORDS.

    (a) Audit of Persons Performing Functions Pursuant to This Act.--
All agencies, corporations, organizations, and other persons of any 
description that, under the authority of the United States, perform any 
function or activity covered under this Act shall be subject to an 
audit by the Comptroller General of the United States with respect to 
that function or activity.
    (b) Audit of Persons Providing Certain Goods or Services.--All 
persons and organizations that, by contract, grant, or otherwise, 
provide goods or services to, or receive financial assistance from, any 
agency or other person performing functions or activities covered under 
this Act shall be subject to an audit by the Comptroller General of the 
United States with respect to the provision of such goods or services 
or the receipt of such financial assistance.
    (c) Provisions Applicable to Audits Under This Section.--
            (1) Nature and scope of audit.--The Comptroller General of 
        the United States shall determine the nature, scope, terms, and 
        conditions of audits conducted under this section.
            (2) Coordination with other provisions of law.--The 
        authority of the Comptroller General of the United States under 
        this section shall be in addition to any audit authority 
        available to the Comptroller General under any other provision 
        of law (including any other provision of this Act).
            (3) Rights of access, examination, and copying.--The 
        Comptroller General of the United States, and any duly 
        authorized representative of the Comptroller General, shall 
        have access to, and the right to examine and copy, all records 
        and other recorded information in any form, and to examine any 
        property within the possession or control of any agency or 
        person that--
                    (A) is subject to audit under this section; and
                    (B) the Comptroller General considers relevant to 
                an audit conducted under this section.
            (4) Enforcement of right of access.--The right of access of 
        the Comptroller General of the United States to information 
        under this section shall be enforceable under section 716 of 
        title 31, United States Code.
            (5) Maintenance of confidential records.--Section 716(e) of 
        title 31, United States Code, shall apply to information 
        obtained by the Comptroller General under this section.

SEC. 108. CONFORMING AMENDMENTS.

    (a) Presidential Succession.--Section 19(d)(1) of title 3, United 
States Code, is amended by striking ``Secretary of Commerce,''.
    (b) Executive Departments.--Section 101 of title 5, United States 
Code, is amended by striking the following item:
            ``The Department of Commerce.''.
    (c) Secretary's Compensation.--Section 5312 of title 5, United 
States Code, is amended by striking the following item:
            ``Secretary of Commerce.''.
    (d) Compensation for Positions at Level III.--Section 5314 of title 
5, United States Code, is amended--
            (1) by striking the following item:
            ``Under Secretary of Commerce, Under Secretary of Commerce 
        for Economic Affairs, Under Secretary of Commerce for Export 
        Administration and Under Secretary of Commerce for Travel and 
        Tourism.'';
            (2) by striking the following item:
            ``Under Secretary of Commerce for Oceans and Atmosphere, 
        the incumbent of which also serves as Administrator of the 
        National Oceanic and Atmospheric Administration.''; and
            (3) by striking the following item:
            ``Under Secretary of Commerce for Technology.''.
    (e) Compensation for Positions at Level IV.--Section 5315 of title 
5, United States Code, is amended--
            (1) by striking the following item:
            ``Assistant Secretaries of Commerce (11).'';
            (2) by striking the following item:
            ``General Counsel of the Department of Commerce.'';
            (3) by striking the following item:
            ``Assistant Secretary of Commerce for Oceans and 
        Atmosphere, the incumbent of which also serves as Deputy 
        Administrator of the National Oceanic and Atmospheric 
        Administration.'';
            (4) by striking the following item:
            ``Director, National Institute of Standards and Technology, 
        Department of Commerce.'';
            (5) by striking the following item:
            ``Inspector General, Department of Commerce.'';
            (6) by striking the following item:
            ``Chief Financial Officer, Department of Commerce.'';
            (7) by striking the item relating to the Director of the 
        Bureau of the Census and inserting ``Director of the Census, 
        Federal Statistical Service''; and
            (8) by striking the following item:
            ``Chief Information Officer, Department of Commerce.''.
    (f) Compensation for Positions at Level V.--Section 5316 of title 
5, United States Code, is amended--
            (1) by striking the following item:
            ``Director, United States Travel Service, Department of 
        Commerce.''; and
            (2) by striking the following item:
            ``National Export Expansion Coordinator, Department of 
        Commerce.''.
    (g) Inspector General Act of 1978.--The Inspector General Act of 
1978 (5 U.S.C. App.) is amended--
            (1) in section 9(a)(1)--
                    (A) by striking subparagraph (B); and
                    (B) by redesignating subparagraphs (C) through (W) 
                as subparagraphs (B) through (V), respectively;
            (2) in section 11(1), by striking ``Commerce,''; and
            (3) in section 11(2), by striking ``Commerce,''.
    (h) Effective Date.--The amendments made by this section shall be 
effective on the applicable date specified in section 102(c).

SEC. 109. PRIVATIZATION FRAMEWORK.

    (a) In General.--
            (1) Privatization.--Not later than 18 months after a 
        function designated for privatization under title II is 
        transferred to the Office, the Director shall privatize that 
        function. The Director shall pursue such forms of privatization 
        arrangements as the Director considers appropriate to best 
        serve the interests of the United States.
            (2) Report.--If, by the date specified in paragraph (1), 
        the Director is unable to privatize a function, the Director 
        shall submit a report that states that inability to Congress, 
        together with recommendations concerning the appropriate 
        disposition of the function involved and the assets of the 
        function.
    (b) Role of the Federal Government.--No privatization arrangement 
made under subsection (a) shall include any role for, or accountability 
to, the Federal Government unless the role or accountability is 
necessary to ensure the continued accomplishment of a specific Federal 
objective. The Federal role should be the minimum role necessary to 
accomplish Federal objectives.
    (c) Assets.--In privatizing a function, the Director shall take any 
action necessary--
            (1) to preserve the value of the assets of a function 
        during the period during which the Office holds such assets; 
        and
            (2) to continue the performance of the function to the 
        extent necessary--
                    (A) to preserve the value of the assets; or
                    (B) to accomplish core Federal objectives (as that 
                term is defined by the Director).

SEC. 110. PRIORITY PLACEMENT PROGRAMS FOR FEDERAL EMPLOYEES AFFECTED BY 
              A REDUCTION IN FORCE ATTRIBUTABLE TO THIS ACT.

    (a) In General.--Subchapter I of chapter 33 of title 5, United 
States Code, is amended by inserting after section 3329 the following:
``Sec. 3329a. Priority placement programs for employees affected by a 
              reduction in force attributable to the Department of 
              Commerce Dismantling Act
    ``(a)(1) For the purpose of this section, the term `affected 
agency'--
            ``(A) except as provided in subparagraph (B), means an 
        Executive agency to which personnel are transferred in 
        connection with a transfer of function under the Department of 
        Commerce Dismantling Act, and
            ``(B) with respect to employees of the Department of 
        Commerce in general administration, the Inspector General's 
        office, or the General Counsel's office, or who provided 
        overhead support to other components of the Department on a 
        reimbursable basis, means all agencies to which functions of 
        those employees are transferred under the Department of 
        Commerce Dismantling Act.
    ``(2) This section applies with respect to any reduction in force 
that--
            ``(A) occurs within 12 months after the date of enactment 
        of this section; and
            ``(B) is due to--
                    ``(i) the termination of any function of the 
                Department of Commerce; or
                    ``(ii) the agency's having excess personnel as a 
                result of a transfer of function described in paragraph 
                (1), as determined by--
                            ``(I) the Director of the Office of 
                        Management and Budget, in the case of a 
                        function transferred to the Office of 
                        Management and Budget; or
                            ``(II) the head of the agency, in the case 
                        of any function transferred to an agency other 
                        than the Office of Management and Budget.
    ``(b) As soon as practicable after the date of enactment of this 
section, each affected agency shall establish an agencywide priority 
placement program to facilitate employment placement for employees who, 
due to a reduction in force described in subsection (a)(2)--
            ``(1) are scheduled to be separated from service; or
            ``(2) are separated from service.
    ``(c)(1) Each agencywide priority placement program shall include 
provisions under which a vacant position shall not be filled by the 
appointment or transfer of any individual from outside of that agency 
if--
            ``(A) an individual described in paragraph (2) who is 
        qualified for the position is available for the position at the 
        time of the occurrence of the vacancy; and
            ``(B) the position--
                    ``(i) is at the same grade (or pay level) or not 
                more than 1 grade (or pay level) below that of the 
                position last held by such individual before placement 
                in the new position; and
                    ``(ii) is within the same commuting area as the 
                individual's last-held position (as referred to in 
                clause (i)) or residence.
    ``(2) For purposes of an agencywide priority placement program, an 
individual shall be considered to be described in this paragraph if the 
most recent performance evaluation of the individual was at least fully 
successful (or the equivalent), and such individual is either--
            ``(A) an employee of the agency who is scheduled to be 
        separated, as described in subsection (b)(1); or
            ``(B) an individual who became a former employee of the 
        agency as a result of a separation, as described in subsection 
        (b)(2).
    ``(d)(1) Nothing in this section shall affect any priority 
placement program of the Department of Defense that is in operation as 
of the date of enactment of this section.
    ``(2) Nothing in this section shall impair any placement program 
within an agency subject to a reduction in force resulting from a cause 
other than the Department of Commerce Dismantling Act.
    ``(e) An individual shall cease to be eligible to participate in a 
program under this section on the earlier of--
            ``(1) the conclusion of the 12-month period beginning on 
        the date on which the individual first became eligible to 
        participate under subsection (c)(2); or
            ``(2) the date on which the individual declines a bona fide 
        offer (or if the individual does not act on the offer, the last 
        date on which the individual could accept the offer) from the 
        affected agency of a position described in subsection 
        (c)(1)(B).''.
    (b) Conforming Amendment.--The chapter analysis for chapter 33 of 
title 5, United States Code, is amended by inserting after the item 
relating to section 3329 the following:

``3329a. Priority placement programs for employees affected by a 
                            reduction in force attributable to the 
                            Department of Commerce Dismantling Act.''.

SEC. 111. FUNDING REDUCTIONS FOR TRANSFERRED FUNCTIONS.

    (a) Funding Reductions.--Except as provided in subsection (b), the 
total amount authorized to be appropriated by the United States for 
accounts related to the performance of functions transferred under this 
Act to the Director or to the Office from the Department, or any of its 
officers or components, shall not exceed--
            (1) for the first fiscal year that begins after the date 
        specified in section 102(c), 75 percent of the total amount 
        appropriated to the Department for the performance of those 
        functions for fiscal year 1997; and
            (2) for the second fiscal year that begins after the date 
        specified in section 102(c) and for each fiscal year 
        thereafter, 65 percent of the total amount appropriated to the 
        Department for the performance of those functions for fiscal 
        year 1997.
    (b) Exception.--Subsection (a) shall not apply to obligations or 
expenditures incurred as a direct consequence of the termination, 
transfer, or other disposition of functions described in subsection (a) 
pursuant to this Act.
    (c) Rule of Construction.--This section shall supersede any other 
provision of law that does not explicitly--
            (1) refer to this section; and
            (2) create an exemption from this section.
    (d) Responsibilities of the Director.--The Director shall--
            (1) ensure compliance with the requirements of this 
        section; and
            (2) include in each report under subsections (a) and (b) of 
        section 106 a description of actions taken to comply with the 
        requirements referred to in paragraph (1).

     TITLE II--DISPOSITION OF PROGRAMS, FUNCTIONS, AND AGENCIES OF 
                         DEPARTMENT OF COMMERCE

SEC. 201. ECONOMIC DEVELOPMENT.

    (a) Terminated Functions.--The Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3121 et seq.) is repealed.
    (b) Transfer of Financial Obligations Owed to the Department.--
There are transferred to the Secretary of the Treasury the loans, 
notes, bonds, debentures, securities, and other financial obligations 
owned by the Department of Commerce under the Public Works and Economic 
Development Act of 1965, together with all assets or other rights 
(including security interests) incident thereto, and all liabilities 
related thereto. There are assigned to the Secretary of the Treasury 
the functions, powers, and abilities vested in or delegated to the 
Secretary of Commerce or the Department of Commerce to manage, service, 
collect, sell, dispose of, or otherwise realize proceeds on obligations 
owed to the Department of Commerce under authority of such Act with 
respect to any loans, obligations, or guarantees made or issued by the 
Department of Commerce pursuant to such Act.
    (c) Audit.--Not later than 18 months after the date of enactment of 
this Act, the Comptroller General shall--
            (1) conduct an audit of all grants made or issued by the 
        Department of Commerce under the Public Works and Economic 
        Development Act of 1965 in fiscal year 1997 and all loans, 
        obligations, and guarantees; and
            (2) transmit to Congress a report on the results of the 
        audit referred to in paragraph (1).

SEC. 202. TECHNOLOGY ADMINISTRATION.

    (a) Technology Administration.--
            (1) General rule.--Except as otherwise provided in this 
        section, the Technology Administration of the Department of 
        Commerce is terminated.
            (2) Office of technology policy.--The Office of Technology 
        Policy of the Department of Commerce is terminated.
    (b) National Institute of Standards and Technology.--
            (1) Redesignation.--The National Institute of Standards and 
        Technology of the Department of Commerce is hereby redesignated 
        as the National Bureau of Standards, and all references to the 
        National Institute of Standards and Technology in Federal law 
        or regulations are deemed to be references to the National 
        Bureau of Standards.
            (2) General rule.--The National Bureau of Standards (in 
        this subsection referred to as the ``Bureau'') is transferred 
        from the Department of Commerce to the National Oceanic and 
        Atmospheric Administration, established in section 206.
            (3) Functions of director.--Except as otherwise provided in 
        this section or section 207, upon the transfer under paragraph 
        (2), the Director of the Bureau shall perform all functions 
        relating to the Bureau that, immediately before the effective 
date specified in section 208(a), were functions of the Secretary of 
Commerce or the Under Secretary of Commerce for Technology.
    (c) National Technical Information Service.--
            (1) Privatization.--All functions of the National Technical 
        Information Service of the Department of Commerce are 
        transferred to the Director of the Office of Management and 
        Budget for privatization in accordance with section 109 by the 
        date specified in subsection (a) of that section.
            (2) Transfer to national oceanic and atmospheric 
        administration.--If, by the date specified in section 109(a), 
        an appropriate arrangement for the privatization of functions 
        of the National Technical Information Service under paragraph 
        (1) has not been made, the National Technical Information 
        Service shall be transferred to the National Oceanic and 
        Atmospheric Administration established in section 206.
            (3) Government corporation.--If, by the date specified in 
        section 109(a), an appropriate arrangement for the 
        privatization of functions of the National Technical 
        Information Service under paragraph (1) has not been made, the 
        Director of the Office of Management and Budget shall, not 
        later than 180 days after the date specified in section 109(a), 
        submit to Congress recommended legislation to establish the 
        National Technical Information Service as a wholly owned 
        Government corporation. The recommended legislation shall 
        provide for the corporation to perform substantially the same 
        functions that, as of the date of enactment of this Act, are 
        performed by the National Technical Information Service.
            (4) Funding.--No funds are authorized to be appropriated 
        for the National Technical Information Service or any successor 
        corporation established pursuant to recommended legislation 
        under paragraph (3).
    (d) Amendments.--
            (1) National institute of standards and technology act.--
        The National Institute of Standards and Technology Act (15 
        U.S.C. 271 et seq.) is amended--
                    (A) in section 2(b), by striking paragraph (1) and 
                redesignating paragraphs (2) through (11) as paragraphs 
                (1) through (10), respectively;
                    (B) in section 2(d), by striking ``, including the 
                programs established under sections 25, 26, and 28 of 
                this Act'';
                    (C) in section 10--
                            (i) in the section heading, by striking 
                        ``Advanced'' and inserting ``Standards and''; 
                        and
                            (ii) in subsection (a), by striking 
                        ``Advanced'' and inserting ``Standards and''; 
                        and
                    (D) by striking sections 24, 25, 26, and 28.
            (2) Stevenson-wydler technology innovation act of 1980.--
        The Stevenson-Wydler Technology Innovation Act of 1980 (15 
        U.S.C. 3701 et seq.) is amended--
                    (A) in section 3, by striking paragraph (2) and 
                redesignating paragraphs (3) through (5) as paragraphs 
                (2) through (4), respectively;
                    (B) in section 4, by striking paragraphs (1), (4), 
                and (13) and redesignating paragraphs (2), (3), (5), 
                (6), (7), (8), (9), (10), (11), and (12) as paragraphs 
                (1) through (10), respectively;
                    (C) by striking sections 5 through 10;
                    (D) in section 11--
                            (i) in subsection (c)(3), by striking ``, 
                        the Federal Laboratory Consortium for 
                        Technology Transfer,'';
                            (ii) in subsection (d)--
                                    (I) in paragraph (2), by striking 
                                ``and the Federal Laboratory Consortium 
                                for Technology Transfer''; and
                                    (II) in paragraph (3), by striking 
                                ``, and refer such requests'' and all 
                                that follows through ``available to the 
                                Service''; and
                            (iii) by striking subsection (e); and
                    (E) in section 17--
                            (i) in subsection (c)--
                                    (I) in paragraph (1), by striking 
                                ``Subject to paragraph (2), separate'' 
                                and inserting ``Separate''; and
                                    (II) by striking paragraph (2) and 
                                redesignating paragraph (3) as 
                                paragraph (2);
                            (ii) in subsection (f), by striking ``funds 
                        to carry out'' and inserting ``funds only to 
                        pay the salary of the Director of the Office of 
Quality Programs, who shall be responsible for carrying out''; and
                            (iii) by adding at the end the following 
                        new subsection:
    ``(h) Voluntary and Uncompensated Services.--The Director of the 
Office of Quality Programs may accept voluntary and uncompensated 
services notwithstanding the provisions of section 1342 of title 31, 
United States Code.''.
            (3) Miscellaneous amendments.--Section 3 of Public Law 94-
        168 (15 U.S.C. 205b) is amended--
                    (A) by striking paragraph (2);
                    (B) by redesignating paragraphs (3) and (4) as 
                paragraphs (2) and (3), respectively; and
                    (C) in paragraph (3), as redesignated by 
                subparagraph (B) of this paragraph, by striking ``in 
                nonbusiness activities''.

SEC. 203. REORGANIZATION OF THE BUREAU OF THE CENSUS AND THE BUREAU OF 
              ECONOMIC ANALYSIS.

    (a) Transfer of Functions.--All functions of the Secretary of 
Commerce relating to the Bureau of the Census and the Bureau of 
Economic Analysis of the Department of Commerce are transferred to the 
Federal Statistical Service established under title V.
    (b) Transfer of Bureaus.--The Bureau of the Census and Bureau of 
Economic Analysis of the Department of Commerce are transferred to the 
Federal Statistical Service established under title V.
    (c) References to Secretary.--Section 1(2) of the title 13, United 
States Code, is amended by striking ``Secretary of Commerce'' and 
inserting ``Administrator of the Federal Statistical Service''.
    (d) References to Department.--Section 2 of title 13, United States 
Code, is amended by striking ``Department of Commerce'' and inserting 
``Federal Statistical Service''.
    (e) General References to Secretary and Department.--Title 13, 
United States Code, is further amended--
            (1) by striking ``Secretary of Commerce'' each place it 
        appears and inserting ``Administrator of the Federal 
        Statistical Service''; and
            (2) by striking ``Department of Commerce'' each place it 
        appears and inserting ``Federal Statistical Service''.

SEC. 204. TERMINATED FUNCTIONS OF NATIONAL TELECOMMUNICATIONS AND 
              INFORMATION ADMINISTRATION.

    (a) Repeals.--The following provisions of law are repealed:
            (1) Subpart A of part IV of title III of the Communications 
        Act of 1934 (47 U.S.C. 390 et seq.), relating to assistance for 
        public telecommunications facilities.
            (2) Subpart B of part IV of title III of the Communications 
        Act of 1934 (47 U.S.C. 394), relating to the Endowment for 
        Children's Educational Television.
            (3) Subpart C of part IV of title III of the Communications 
        Act of 1934 (47 U.S.C. 395), relating to Telecommunications 
        Demonstration grants.
    (b) Disposal of National Telecommunications and Information 
Administration Laboratories.--
            (1) Privatization.--All laboratories of the National 
        Telecommunications and Information Administration are 
        transferred to the Director of the Office of Management and 
        Budget for privatization in accordance with section 109 by the 
        date specified in subsection (a) of that section.
            (2) Transfer to national oceanic and atmospheric 
        administration.--If an appropriate arrangement for the 
privatization of functions of the laboratories of the National 
Telecommunications and Information Administration under paragraph (1) 
has not been made by the date specified in section 109(a), the 
laboratories of the National Telecommunications and Information 
Administration shall be transferred as of the end of such period to the 
National Oceanic and Atmospheric Administration established in section 
206.
            (3) Transfer of functions.--The functions of the National 
        Telecommunications and Information Administration concerning 
        research and analysis of the electromagnetic spectrum described 
        in section 5112(b) of the Omnibus Trade and Competitiveness Act 
        of 1988 (15 U.S.C. 1532) are transferred to the Director of the 
        National Bureau of Standards.
    (c) Transfer of National Telecommunications and Information 
Administration Functions.--
            (1) Transfer to federal communications commission.--Except 
        as provided in subsection (b)(2), the functions of the National 
        Telecommunications and Information Administration, and of the 
        Secretary of Commerce and the Assistant Secretary for 
        Communications and Information of the Department of Commerce 
        with respect to the National Telecommunications and Information 
        Administration, are transferred to the Federal Communications 
        Commission. The functions transferred by this paragraph shall 
        be placed in an organizational component that is independent 
        from all Federal Communications Commission functions directly 
        related to the negotiation of trade agreements. Such functions 
        shall be supervised by an individual whose principal 
        professional expertise is in the area of telecommunications. 
        The position to which such individual is appointed shall be 
        graded at a level sufficiently high to attract a highly 
        qualified individual, while ensuring autonomy in the conduct of 
        such functions from all activities and influences associated 
        with trade negotiations.
            (2) References.--References in any provision of law 
        (including the National Telecommunications and Information 
        Administration Organization Act) to the Secretary of Commerce 
        or the Assistant Secretary for Communications and Information 
        of the Department of Commerce--
                    (A) with respect to a function vested pursuant to 
                this section in the Federal Communications Commission 
                shall be deemed to refer to the United States Trade 
                Representative; and
                    (B) with respect to a function vested pursuant to 
                this section in the Director of the National Bureau of 
                Standards shall be deemed to refer to the Director of 
                the National Bureau of Standards.
            (3) Termination of ntia.--Effective on the applicable date 
        specified in section 102(c), the National Telecommunications 
        and Information Administration is abolished.

SEC. 205. TERMINATIONS AND TRANSFERS.

    (a) Termination of Miscellaneous Research Programs and Accounts.--
            (1) In general.--No funds may be appropriated for any 
        fiscal year for the following programs and accounts of the 
        National Oceanic and Atmospheric Administration:
                    (A) The National Undersea Research Program.
                    (B) The Fleet Modernization Program.
                    (C) The Charleston, South Carolina, Special 
                Management Plan.
                    (D) Chesapeake Bay Observation Buoys (as of 
                September 30, 1996).
                    (E) Federal/State Weather Modification Grants.
                    (F) The Southeast Storm Research Account.
                    (G) The Southeast United States Caribbean Fisheries 
                Oceanographic Coordinated Investigations Program.
                    (H) National Institute for Environmental Renewal.
                    (I) The Lake Champlain Study.
                    (J) The Maine Marine Research Center.
                    (K) The South Carolina Cooperative Geodetic Survey 
                Account.
                    (L) Pacific Island Technical Assistance.
                    (M) Sea Grant Oyster Disease Account.
                    (O) National Weather Service non-Federal, non-
                wildfire Weather Service.
                    (P) National Weather Service Regional Climate 
                Centers.
                    (Q) National Weather Service Samoa Weather Forecast 
                Office Repair and Upgrade Account.
                    (R) Dissemination of Weather Charts (Marine 
                Facsimile Service).
                    (S) The Climate and Global Change Account.
                    (T) The Global Learning and Observations to Benefit 
                the Environment Program.
                    (U) Mussel watch.
            (2) Repeals.--The following provisions of law are repealed:
                    (A) The Ocean Thermal Conversion Act of 1980 (42 
                U.S.C. 9101 et seq.).
                    (B) Title IV of the Marine Protection, Research, 
                and Sanctuaries Act of 1972 (16 U.S.C. 1447 et seq.).
                    (C) Title V of the Marine Protection, Research, and 
                Sanctuaries Act of 1972 (33 U.S.C. 2801 et seq.).
                    (D) The Great Lakes Fish and Wildlife Tissue Bank 
                Act (16 U.S.C. 943 et seq.).
                    (E) Section 208(c) of the National Sea Grant 
                College Program Act (33 U.S.C. 1127(c)).
                    (F) Section 305 of the Coastal Zone Management Act 
                of 1972 (16 U.S.C. 1454) is repealed effective October 
                1, 2000.
                    (G) The NOAA Fleet Modernization Act (33 U.S.C. 891 
                et seq.).
                    (H) Public Law 85-342 (72 Stat. 35; 16 U.S.C. 778 
                et seq.), relating to fish research and 
                experimentation.
                    (I) The first section of the Act of August 8, 1956 
                (70 Stat. 1126, chapter 1039; 16 U.S.C. 760d), relating 
                to grants for commercial fishing education.
                    (J) Public Law 86-359 (16 U.S.C. 760e et seq.), 
                relating to the study of migratory marine gamefish.
    (b) Aeronautical Mapping and Charting.--
            (1) In general.--The aeronautical mapping and charting 
        functions of the National Oceanic and Atmospheric 
        Administration are transferred to the Transportation 
        Administrative Services Center at the Department of 
        Transportation.
            (2) Termination of certain functions.--The Transportation 
        Administrative Services Center shall terminate any functions 
        transferred under paragraph (1) that are performed by the 
        private sector or obtain by contract from the private sector 
        those activities that are commercial in nature and necessary to 
        carry out inherently governmental functions.
            (3) Functions requested by federal aviation 
        administration.--
                    (A) In general.--Notwithstanding paragraph (2), the 
                Director of the Transportation Administrative Services 
                Center (referred to in this paragraph as the 
                ``Director'') shall carry out such aeronautical 
                charting functions as may be requested by the 
                Administrator of the Federal Aviation Administration.
                    (B) Aeronautical mapping.--In carrying out 
                aeronautical mapping functions requested by the 
                Administrator under subparagraph (A), the Director 
                shall in such manner and including such information as 
                the Administrator determines is necessary for, or will 
                promote, the safe and efficient movement of aircraft in 
                air commerce--
                            (i) publish and distribute to the public 
                        and to the Administrator any aeronautical 
                        charts requested by the Administrator; and
                            (ii) provide to the Administrator such 
                        other air traffic control products and services 
                        as may be requested by the Administrator.
            (4) Continuing applicability.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the requirements of section 1307 of title 44, 
                United States Code, shall continue to apply with 
                respect to all aeronautical products created or 
                published by the Director in carrying out the functions 
                transferred to the Director under this paragraph.
                    (B) Exceptions.--The prices for products referred 
                to in subparagraph (A) shall be established jointly by 
                the Director and the Secretary of Transportation on an 
                annual basis.
    (c) Transfer of Mapping, Charting, and Geodesy Functions to the 
Army Corps of Engineers.--
            (1) In general.--Except as provided in subsection (b), 
        there are transferred to the Army Corps of Engineers the 
        functions relating to mapping, charting, and geodesy authorized 
        under the Act of August 7, 1947 (61 Stat. 787, chapter 504; 33 
        U.S.C. 883a).
            (2) Termination of certain functions.--The Secretary of the 
        Army, acting through the Chief of Engineers of Army Corps of 
        Engineers, shall terminate any functions transferred under 
        paragraph (1) that are performed by the private sector or 
        obtain by contract from the private sector those functions that 
        are commercial in nature and are necessary to carry out 
        inherently governmental functions.
    (d) National Environmental Satellite, Data, and Information.--There 
are transferred to the National Oceanic and Atmospheric Administration 
established in section 206 all functions and assets of the National 
Oceanic and Atmospheric Administration that on the date immediately 
before the effective date of this section are authorized to be 
performed by the National Environmental Satellite, Data, and 
Information System.
    (e) Oceanic and Atmospheric Administration.--There are transferred 
to the National Oceanic and Atmospheric Administration established in 
section 206 all functions and assets of the National Oceanic and 
Atmospheric Administration (including global programs) that on the date 
immediately before the effective date of this section were authorized 
to be performed by the Office of Oceanic and Atmospheric Research.
    (f) National Weather Service.--
            (1) In general.--There are transferred to the National 
        Oceanic and Atmospheric Administration established in section 
        206 all functions and assets of the National Oceanic and 
        Atmospheric Administration that on the date immediately before 
        the effective date of this section are authorized to be 
        performed by the National Weather Service.
            (2) Duties.--Except as provided in paragraph (3), to 
        protect life and property and enhance the national economy, the 
        Administrator of Oceans and Atmosphere, through the National 
        Weather Service, shall be responsible for the following:
                    (A) Forecasts. (The Administrator shall serve as 
                the sole and official sources of weather and flood 
warnings for the Federal Government.)
                    (B) The issuance of storm warnings.
                    (C) The collection, exchange, and distribution of 
                meteorological, hydrological, climatic, and 
                oceanographic data and information.
                    (D) The preparation of hydro-meteorological 
                guidance and core forecast information.
            (3) Limitations on competition.--The National Weather 
        Service may not compete, or assist other entities in competing, 
        with the private sector to provide a service in any case in 
        which that service is provided by a private sector commercial 
        enterprise or a private sector commercial enterprise is able to 
        provide that service, unless--
                    (A) the Administrator of Oceans and Atmosphere 
                finds that private sector commercial enterprises are 
                unwilling or unable to provide the service; and
                    (B) the Administrator of Oceans and Atmosphere 
                finds that the service provides vital weather warnings 
                and forecasts for the protection of lives and property 
                of the general public.
            (4) Organic act amendments.--The Act entitled ``An Act to 
        increase the efficiency and reduce the expenses of the Signal 
        Corps of the Army, and to transfer the Weather Bureau to the 
        Department of Agriculture'', approved October 1, 1890 (26 Stat. 
        653, chapter 1266) is amended--
                    (A) by striking section 3 (15 U.S.C. 313); and
                    (B) in section 9 (15 U.S.C. 317), by striking 
                ``Department of'' and all that follows thereafter and 
                inserting ``National Oceanic and Atmospheric 
                Administration.''.
            (5) Repeal.--Sections 706 and 707 of the Weather Service 
        Modernization Act (15 U.S.C. 313 note) are repealed.
            (6) Conforming amendments.--The Weather Service 
        Modernization Act (15 U.S.C. 313 note) is amended--
                    (A) in section 702, by striking paragraph (3) and 
                redesignating paragraphs (4) through (10) as paragraphs 
                (3) through (9), respectively; and
                    (B) in section 703--
                            (i) by striking ``(a) National 
                        Implementation Plan.--'';
                            (ii) by striking paragraph (3) and 
                        redesignating paragraphs (4) through (6) as 
                        paragraphs (3) through (5), respectively; and
                            (iii) by striking subsections (b) and (c).
    (g) Termination of the National Oceanic and Atmospheric 
Administration Corps of Commissioned Officers.--
            (1) Number of officers.--Notwithstanding section 8 of the 
        Act of June 3, 1948 (62 Stat. 298, chapter 390; 33 U.S.C. 
        853g), no funding may be provided for a commissioned officer of 
        the National Oceanic and Atmospheric Administration Corps after 
        fiscal year 1997 and no individual may serve as such a 
        commissioned officer after fiscal year 1997.
            (2) Separation pay.--
                    (A) In general.--Commissioned officers may be 
                separated from the active list of the National Oceanic 
                and Atmospheric Administration. Any officer so 
                separated because of paragraph (1) shall, subject to 
                subparagraph (B) and the availability of 
                appropriations, be eligible for separation pay under 
                section 9 of the Act of June 3, 1948 (62 Stat. 299, 
                chapter 390; 33 U.S.C. 853h) to the same extent as if 
                such officer had been separated under section 8 of such 
                Act (62 Stat. 298, chapter 390; 33 U.S.C. 853g).
                    (B) Transferees.--Any officer who, under paragraph 
                (4), transfers to another of the uniformed services or 
                becomes employed in a civil service position shall not 
                be eligible for separation pay under this paragraph.
                    (C) Repayment.--
                            (i) In general.--Any officer who receives 
                        separation pay under this paragraph shall be 
                        required to repay the amount received if, 
                        within 1 year after the date of the separation 
                        on which the payment is based, such officer is 
                        reemployed in a civil service position in the 
                        National Oceanic and Atmospheric 
                        Administration, the duties of which position 
                        would formerly have been performed by a 
                        commissioned officer, as determined by the 
                        Administrator of Oceans and Atmosphere.
                            (ii) Lump sum.--A repayment under this 
                        subparagraph shall be made in a lump sum or in 
                        such installments as the Administrator may 
                        specify.
                    (D) Repayments.--
                            (i) In general.--In the case of any officer 
                        who makes a repayment under subparagraph (C)--
                                    (I) the National Oceanic and 
                                Atmospheric Administration shall pay 
                                into the Civil Service Retirement and 
                                Disability Fund, on such officer's 
                                behalf, any deposit required under 
                                section 8422(e)(1) of title 5, United 
                                States Code, with respect to any prior 
                                service performed by that individual as 
                                such an officer; and
                                    (II) if the amount paid under 
                                subclause (I) is less than the amount 
                                of the repayment under subparagraph 
                                (C), the National Oceanic and 
                                Atmospheric Administration shall pay 
                                into the Government Securities 
                                Investment Fund (established under 
                                section 8438(b)(1)(A) of title 5, 
                                United States Code), on such 
                                individual's behalf, an amount equal to 
                                the difference.
                            (ii) Applicability.--The provisions of 
                        paragraph (5)(C)(iv) shall apply with respect 
                        to any contribution to the Thrift Savings Plan 
                        made under clause (ii).
            (3) Priority placement program.--A priority placement 
        program similar to the programs described in section 3329a of 
        title 5, United States Code (as added by section 110 of this 
        Act) shall be established by the National Oceanic and 
        Atmospheric Administration to assist commissioned officers who 
        are separated from the active list of the National Oceanic and 
        Atmospheric Administration because of paragraph (1).
            (4) Transfer.--
                    (A) Transfers to armed forces.--Subject to the 
                approval of the Secretary of Defense and under terms 
                and conditions specified by the Secretary, commissioned 
                officers subject to paragraph (1) may transfer to the 
                Armed Forces under section 716 of title 10, United 
                States Code.
                    (B) Transfers to united states coast guard.--
                Subject to the approval of the Secretary of 
                Transportation and under terms and conditions specified 
                by the Secretary, commissioned officers subject to 
                paragraph (1) may transfer to the United States Coast 
                Guard under section 716 of title 10, United States 
                Code.
                    (C) Transfers to national oceanic and atmospheric 
                administration.--Subject to the approval of the 
                Administrator of Oceans and Atmosphere and under terms 
                and conditions specified by that Administrator, 
                commissioned officers subject to paragraph (1) may be 
                employed by the National Oceanic and Atmospheric 
                Administration as members of the civil service.
            (5) Retirement provisions.--
                    (A) In general.--For commissioned officers who 
                transfer under paragraph (4)(A) to the Armed Forces, 
                the National Oceanic and Atmospheric Administration 
                shall pay into the Department of Defense Military 
                Retirement Fund an amount, to be calculated by the 
                Secretary of Defense in consultation with the Secretary 
                of the Treasury, equal to the actuarial present value 
                of any retired or retainer pay they will draw upon 
                retirement, including full credit for service in the 
                National Oceanic and Atmospheric Administration 
                (referred to in this title as the ``NOAA Corps''). Any 
                payment under this subparagraph shall, for purposes of 
                paragraph (2) of section 206(g), be considered to be an 
                expenditure described in such paragraph.
                    (B) Other transfers.--For commissioned officers who 
                transfer under paragraph (4)(B) to the United States 
                Coast Guard, full credit for service in the NOAA Corps 
                shall be given for purposes of any annuity or other 
                similar benefit under the retirement system for members 
                of the United States Coast Guard, entitlement to which 
                is based on the separation of such officer.
                    (C) Payment to certain commissioned officers who 
                transfer to civil service positions.--(i) For a 
                commissioned officer who becomes employed in a civil 
                service position pursuant to paragraph (4)(C) and 
                thereupon becomes subject to the Federal Employees' 
                Retirement System, the National Oceanic and Atmospheric 
                Administration shall pay, on such officer's behalf--
                            (I) into the Civil Service Retirement and 
                        Disability Fund, the amounts required under 
                        clause (ii); and
                            (II) into the Government Securities 
                        Investment Fund, the amount required under 
                        clause (iii).
                    (ii)(I) The amount required under this subclause is 
                the amount of any deposit required under section 
                8422(e)(1) of title 5, United States Code, with respect 
                to any prior service performed by the individual as a 
                commissioned officer of the National Oceanic and 
                Atmospheric Administration.
                    (II) To determine the amount required under this 
                subclause, first determine, for each year of service 
                with respect to which the deposit under subclause (I) 
                relates, the product of the normal-cost percentage for 
                such year (as determined under the last sentence of 
                this subclause) multiplied by basic pay received by the 
                individual for any such service performed in such year. 
                Second, take the sum of the amounts determined for the 
                respective years under the first sentence. Finally, 
                subtract from such sum the amount of the deposit under 
                subclause (I). For purposes of the first sentence, the 
                normal-cost percentage for any year shall be as 
                determined for such year under the provisions of 
                section 8423(a)(1) of title 5, United States Code, 
                except that, in the case of any year before the first 
                year for which any normal-cost percentage was 
                determined under such provisions, the normal-cost 
                percentage for such first year shall be used.
                    (iii) The amount required under this clause is the 
                amount by which the separation pay to which the officer 
                would have been entitled under the second sentence of 
                paragraph (2)(A) (assuming the conditions for receiving 
                such separation pay have been met) exceeds the amount 
                of the deposit under clause (ii)(I), if at all.
                    (iv)(I) Any contribution made under this 
                subparagraph to the Thrift Savings Plan shall not be 
                subject to any otherwise applicable limitation on 
                contributions contained in the Internal Revenue Code of 
                1986, and shall not be taken into account in applying 
                any such limitation to other contributions or benefits 
                under the Thrift Savings Plan, with respect to the year 
                in which the contribution is made.
                    (II) A plan referred to in subclause (I) shall not 
                be treated as failing to meet any nondiscrimination 
                requirement by reason of the making of such 
                contribution.
            (6) Repeals.--
                    (A) In general.--The following provisions of law 
                are repealed:
                            (i) The Coast and Geodetic Survey 
                        Commissioned Officers' Act of 1948 (33 U.S.C. 
                        853a-853o, 853p-853u).
                            (ii) Section 5 of the Act of February 16, 
                        1929 (45 Stat. 1187, chapter 221; 33 U.S.C. 
                        852a).
                            (iii) The Act of January 19, 1942 (56 Stat. 
                        6, chapter 6).
                            (iv) Section 9(c) of Public Law 87-649 (76 
                        Stat. 495).
                            (v) Section 16 of the Act of May 22, 1917 
                        (40 Stat. 87, chapter 20; 33 U.S.C. 854).
                            (vi) The Act of December 3, 1942 (56 Stat. 
                        1038, chapter 670).
                            (vii) Sections 1 through 5 of Public Law 
                        91-621 (33 U.S.C. 857-1 through 857-5).
                            (viii) Section 3 of the Act of August 10, 
                        1956 (70A Stat. 619, chapter 1041; 33 U.S.C. 
                        857a).
                            (ix) Section 11 of the Act of May 18, 1920 
                        (41 Stat. 603, chapter 190; 33 U.S.C. 864).
                            (x) The Act of July 22, 1947 (61 Stat. 400, 
                        chapter 286; 33 U.S.C. 873 and 874).
                            (xi) The Act of August 3, 1956 (70 Stat. 
                        988, chapter 932; 33 U.S.C. 875 and 876).
                    (B) Rule of construction.--No repeal under this 
                subparagraph shall affect any annuity or other similar 
                benefit payable, under any provision of law so 
                repealed, based on the separation of any individual 
                from the NOAA Corps on or before September 30, 2000. 
                Any authority exercised by the Secretary of Commerce or 
                the designee of the Secretary with respect to any such 
                benefits shall be exercised by the Administrator of 
                Oceans and Atmosphere, and any authorization of 
                appropriations relating to those benefits, which is in 
                effect as of September 30, 2000, shall be considered to 
have remained in effect.
                    (C) Effective date of repeals.--The effective date 
                of the repeals under subparagraph (A) shall be October 
                1, 2000.
                    (D) Applicability of retirement laws.--
                            (i) In general.--All laws relating to the 
                        retirement of commissioned officers of the Navy 
                        shall apply to commissioned officers of the 
                        former Commissioned Officers Corps of the 
                        National Oceanic and Atmospheric Administration 
                        and its predecessors.
                            (ii) Active military service.--Active 
                        service of officers of the former Commissioned 
                        Officers Corps of the National Oceanic and 
                        Atmospheric Administration and its predecessors 
                        who have retired from the Commissioned Officers 
                        Corps shall be deemed to be active military 
                        service in the United States Navy for purposes 
                        of all rights, privileges, immunities, and 
                        benefits provided to retired commissioned 
                        officers of the Navy by the laws and 
                        regulations of the United States and any agency 
                        thereof. In the Administration of those laws 
                        (including regulations) with respect to retired 
                        officers of the former Commissioned Officers 
                        Corps of the National Oceanic and Atmospheric 
                        Administration and its predecessors, the 
                        authority of the Secretary of the Navy shall be 
                        exercised by the Administrator of Oceans and 
                        Atmosphere.
                            (iii) Its predecessors defined.--For 
                        purposes of this subparagraph, the term ``its 
                        predecessors'' means the former Commissioned 
                        Officers Corps of the Environmental Science 
                        Services Administration and the former 
                        Commissioned Officers Corps of the Coast and 
                        Geodetic Survey.
            (7) Creditability of national oceanic and atmospheric 
        administration service for purposes relating to reductions in 
        force.--A commissioned officer who is separated from the active 
        list of the National Oceanic and Atmospheric Administration or 
        its successor by reason of paragraph (1) shall, for purposes of 
        any subsequent reduction in force, receive credit for any 
        period of service performed as such an officer before 
        separation from such list to the same extent and in the same 
        manner as if the period had been a period of active service in 
        the Armed Forces.
            (8) Abolition.--Effective September 30, 2000, the Office of 
        the National Oceanic and Atmospheric Administration Corps of 
        Operations or its successor and the Commissioned Personnel 
        Center are abolished.
    (g) National Oceanic and Atmospheric Administration Fleet.--
            (1) Service contracts.--Notwithstanding any other provision 
        of law, the Administrator of Oceans and Atmosphere shall enter 
        into contracts, including multiyear contracts, subject to 
        paragraph (3), for the use of vessels to conduct oceanographic 
        research and fisheries research, monitoring, enforcement, and 
        management, and to acquire other data necessary to carry out 
        the missions of the National Oceanic and Atmospheric 
        Administration. The Administrator of Oceans and Atmosphere 
        shall enter into these contracts unless--
                    (A) the cost of the contract is more than the cost 
                (including the cost of vessel operation, maintenance, 
                and all personnel) to the National Oceanic and 
                Atmospheric Administration of obtaining those services 
                on vessels of the National Oceanic and Atmospheric 
                Administration;
                    (B) the contract is for a period greater than 7 
                years; or
                    (C) the data is acquired through a vessel agreement 
                pursuant to paragraph (4).
            (2) Vessels.--The Administrator of Oceans and Atmosphere 
        may not enter into any contract for the construction, lease-
        purchase, upgrade, or service life extension of any vessel.
            (3) Multiyear contracts.--
                    (A) In general.--Subject to subparagraphs (B) and 
                (C), and notwithstanding section 1341 of title 31, 
                United States Code, and section 11 of title 41, United 
                States Code, the Administrator of Oceans and Atmosphere 
                may acquire data under multiyear contracts.
                    (B) Required findings.--The Administrator of Oceans 
                and Atmosphere may not enter into a contract pursuant 
                to this paragraph unless the Administrator finds, with 
                respect to that contract, that there is a reasonable 
                expectation that throughout the contemplated contract 
                period the Administrator will request from Congress 
                funding for the contract at the level required to avoid 
the termination of that contract.
                    (C) Required provisions.--The Administrator of 
                Oceans and Atmosphere may not enter into a contract 
                under this paragraph unless the contract includes--
                            (i) a provision under which the obligation 
                        of the United States to make payments under the 
                        contract for any fiscal year is subject to the 
                        availability of appropriations provided in 
                        advance for those payments;
                            (ii) a provision that specifies the term of 
                        effectiveness of the contract; and
                            (iii) appropriate provisions under which, 
                        in case of any termination of the contract 
                        before the end of the term specified pursuant 
                        to clause (ii), the United States shall only be 
                        liable for the lesser of--
                                    (I) an amount specified in the 
                                contract for such a termination; or
                                    (II) amounts that were appropriated 
                                before the date of the termination for 
                                the performance of the contract or for 
                                procurement of the type of acquisition 
                                covered by the contract and are 
                                unobligated on the date of the 
                                termination.
            (4) Vessel agreements.--The Administrator of Oceans and 
        Atmosphere--
                    (A) shall, if appropriate, use excess capacity of 
                University National Oceanographic Laboratory System 
                vessels; and
                    (B) may enter into memoranda of agreement with the 
                operators of the vessels referred to in subparagraph 
                (A) to carry out the requirement under that 
                subparagraph.
            (5) Transfer of excess vessels.--The Administrator of 
        Oceans and Atmosphere shall transfer any vessel that weighs 
        more than 1,500 gross tons that are excess to the needs of the 
        National Oceanic and Atmospheric Administration to the National 
        Defense Reserve Fleet. Notwithstanding any other provision of 
        law, these vessels may be scrapped in accordance with section 
        510(i) of the Merchant Marine Act, 1936 (46 U.S.C. App. 
        1160(i)).
    (i) National Marine Fisheries Service.--There are transferred to 
the National Oceanic and Atmospheric Administration all functions that 
on the day before the effective date of this section are authorized by 
law to be performed by the National Marine Fisheries Service.
    (h) National Ocean Service.--Except as otherwise provided in this 
Act, there are transferred to the National Oceanic and Atmospheric 
Administration established under section 206 all functions and assets 
of the National Oceanic and Atmospheric Administration that on the date 
immediately before the effective date of this section are authorized to 
be performed by the National Ocean Service (including the Coastal Ocean 
Program).
    (k) Transfer of Coastal Nonpoint Pollution Control Functions.--
There are transferred to the Administrator of the Environmental 
Protection Agency the functions under section 6217 of the Omnibus 
Budget Reconciliation Act of 1990 (16 U.S.C. 1455b) that on the day 
before the effective date of this section are vested in the Secretary 
of Commerce.

SEC. 206. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION.

    (a) Establishment.--
            (1) In general.--There is established as an independent 
        agency in the executive branch the National Oceanic and 
        Atmospheric Administration (in this section referred to as 
        ``NOAA''). NOAA, and all functions and offices transferred to 
        NOAA under this Act, shall be administered under the 
        supervision and direction of an Administrator of Oceans and 
        Atmosphere.
            (2) Administrator of oceans and atmosphere.--The 
        Administrator of Oceans and Atmosphere shall--
                    (A) be appointed by the President, by and with the 
                advice and consent of the Senate; and
                    (B) receive basic pay at the rate payable for level 
                II of the Executive Schedule under section 5313 of 
                title 5, United States Code.
            (3) Functions.--The Administrator of Oceans and Atmosphere 
        shall perform the functions performed by the Administrator of 
        the National Oceanic and Atmospheric Administration, except as 
        otherwise provided in this Act.
    (b) Principal Officer.--There shall be in NOAA, on the transfer of 
functions and offices under this Act, a Director of the National Bureau 
of Standards, who--
            (1) shall be appointed by the President, by and with the 
        advice and consent of the Senate; and
            (2) shall receive basic pay at the rate payable for level 
        IV of the Executive Schedule under section 5315 of title 5, 
        United States Code.
    (c) Additional Officers.--
            (1) In general.--There shall be in NOAA--
                    (A) a Chief Financial Officer, to be appointed by 
                the President, by and with the advice and consent of 
                the Senate;
                    (B) a Chief of External Affairs, to be appointed by 
                the President, by and with the advice and consent of 
                the Senate;
                    (C) a General Counsel, to be appointed by the 
                President, by and with the advice and consent of the 
                Senate; and
                    (D) an Inspector General, to be appointed in 
                accordance with the Inspector General Act of 1978 (5 
                U.S.C. App.).
            (2) Compensation.--Each Officer appointed under this 
        subsection shall receive basic pay at the rate payable for 
        level IV of the Executive Schedule under section 5315 of title 
        5, United States Code.
    (d) Transfer of Functions and Offices.--Except as otherwise 
provided in this Act, there are transferred to NOAA--
            (1) the functions and offices of the National Oceanic and 
        Atmospheric Administration, as provided in section 205;
            (2) the National Bureau of Standards, along with its 
        functions and offices, as provided in section 202; and
            (3) the Office of Space Commerce, along with its functions 
        and offices.
    (e) Elimination of Positions.--The Administrator of Oceans and 
Atmosphere may eliminate positions that are no longer necessary because 
of the termination of functions under this section and sections 202 and 
205.
    (f) Agency Terminations.--
            (1) Terminations.--
                    (A) In general.--On the date specified in section 
                208(a), the following shall terminate:
                            (i) The Office of the Deputy Administrator 
                        and Assistant Secretary of the National Oceanic 
                        and Atmospheric Administration.
                            (ii) The Office of the Deputy Under 
                        Secretary of the National Oceanic and 
                        Atmospheric Administration.
                            (iii) The Office of the Chief Scientist of 
                        the National Oceanic and Atmospheric 
                        Administration.
                            (iv) The position of Deputy Assistant 
                        Secretary for Oceans and Atmosphere.
                            (v) The position of Deputy Assistant 
                        Secretary for International Affairs.
                            (vi) Any office of the National Oceanic and 
                        Atmospheric Administration or the National 
                        Bureau of Standards whose primary purpose is to 
                        perform high performance computing 
                        communications, legislative, personnel, public 
                        relations, budget, constituent, 
                        intergovernmental, international, policy and 
                        strategic planning, sustainable development, 
                        administrative, financial, educational, legal 
                        and coordination functions.
                            (vii) The position of Associate Director of 
                        the National Institute of Standards and 
                        Technology.
                    (B) Requirement.--The functions referred to in 
                subparagraph (A)(vi) shall be performed only by 
                officers described in subsection (c).
            (2) Termination of executive schedule positions.--Each 
        position that, before the effective date of this section, was 
        expressly authorized by law, or the incumbent of which is 
        authorized to receive compensation at the rate prescribed for 
        levels I through V of the Executive Schedule under sections 
        5312 through 5315 of title 5, United States Code, in an office 
        terminated pursuant to this section and sections 202 and 205 
        shall also terminate.

SEC. 207. MISCELLANEOUS TERMINATIONS; MORATORIUM ON PROGRAM ACTIVITIES.

    (a) Terminations.--The following agencies and programs of the 
Department of Commerce are terminated:
            (1) The Minority Business Development Administration.
            (2) The programs and activities of the National 
        Telecommunications and Information Administration referred to 
        in section 204(a).
            (3) The Advanced Technology Program under section 28 of the 
        National Institute of Standards and Technology Act (15 U.S.C. 
        278n), as in effect on the day before the effective date of 
        section 202(d).
            (4) The Manufacturing Extension Programs under sections 25 
        and 26 of the National Institute of Standards and Technology 
Act (15 U.S.C. 278k and 278l), as in effect on the day before the 
effective date of section 202(d).
            (5) The National Institute of Standards and Technology 
        METRIC Program.
            (6) The Economics and Statistics Administration.
    (b) Moratorium on Program Activities.--The authority to make 
grants, enter into contracts, provide assistance, incur obligations, or 
provide commitments (including any enlargement of existing obligations 
or commitments, except if required by law) with respect to the agencies 
and programs described in subsection (a) is terminated effective on the 
date of enactment of this Act.

SEC. 208. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this title 
shall take effect on the date specified in section 102(c).
    (b) Provisions Effective on Date of Enactment.--The following 
provisions of this title shall take effect on the date of enactment of 
this Act:
            (1) Section 201.
            (2) Section 205(g), except as otherwise provided in that 
        section.
            (3) Section 207(b).
            (4) This section.

     TITLE III--ESTABLISHMENT OF UNITED STATES TRADE ADMINISTRATION

                     Subtitle A--General Provisions

SEC. 301. DEFINITIONS.

    In this title:
            (1) Federal agency.--The term ``Federal agency'' has the 
        meaning given to the term ``agency'' in section 551(1) of title 
        5, United States Code.
            (2) Trade administration.--The term ``Trade 
        Administration'' means the United States Trade Administration 
        established by section 311 of this Act.
            (3) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade Representative 
        provided for under section 311 of this Act.

             Subtitle B--United States Trade Administration

                        CHAPTER 1--ESTABLISHMENT

SEC. 311. ESTABLISHMENT OF THE UNITED STATES TRADE ADMINISTRATION.

    (a) In General.--The Trade Administration is established in the 
executive branch of Government as an independent establishment as 
defined in section 104 of title 5, United States Code. The Trade 
Representative shall be the head of the Trade Administration and shall 
be appointed by the President, by and with the advice and consent of 
the Senate.
    (b) Ambassador Status.--The Trade Representative shall have the 
rank of Ambassador Extraordinary and Plenipotentiary and shall 
represent the United States in all trade negotiations conducted by the 
Trade Administration.
    (c) Continued Service of Current Trade Representative.--The 
individual serving as Trade Representative on the date immediately 
preceding the effective date of this title may continue to serve as 
Trade Representative under this section until such time as the Trade 
Representative is appointed pursuant to subsection (a).
    (d) Successor to the Department of Commerce.--The Trade 
Administration shall be the successor to the Department of Commerce for 
purposes of protocol.

SEC. 312. FUNCTIONS OF THE TRADE REPRESENTATIVE.

    (a) In General.--In addition to the functions transferred to the 
Trade Representative by this title, such other functions as the 
President may assign or delegate to the Trade Representative, and such 
other functions as the Trade Representative may, after the effective 
date of this title, be required to carry out by law, the Trade 
Representative shall--
            (1) serve as the principal advisor to the President on 
        international trade policy and advise the President on the 
        impact of other policies of the United States Government on 
        international trade;
            (2) exercise primary responsibility, with the advice of the 
        interagency organization established under section 242 of the 
        Trade Expansion Act of 1962 (19 U.S.C. 1872), for developing 
        and implementing international trade policy, including 
        commodity matters and, to the extent related to international 
        trade policy, direct investment matters and, in exercising such 
        responsibility, advance and implement, as the primary mandate 
        of the Trade Administration, the goals of the United States 
        to--
                    (A) maintain United States leadership in 
                international trade liberalization and expansion 
                efforts;
                    (B) reinvigorate the ability of the United States 
                economy to compete in international markets and to 
                respond flexibly to changes in international 
                competition; and
                    (C) expand United States participation in 
                international trade through aggressive promotion and 
                marketing of goods and services that are products of 
                the United States;
            (3) exercise lead responsibility for the conduct of 
        international trade negotiations, including negotiations 
        relating to commodity matters and, to the extent that such 
        negotiations are related to international trade, direct 
        investment negotiations;
            (4) exercise lead responsibility for the establishment of a 
        national export strategy, including policies designed to 
        implement such strategy;
            (5) with the advice of the interagency organization 
        established under section 242 of the Trade Expansion Act of 
        1962, issue policy guidance to other Federal agencies on 
        international trade, commodity, and direct investment functions 
        to the extent necessary to assure the coordination of 
        international trade policy;
            (6) seek and promote new opportunities for United States 
        products and services to compete in the world marketplace;
            (7) assist small businesses in developing export markets;
            (8) enforce the laws of the United States relating to 
        trade;
            (9) analyze economic trends and developments;
            (10) report directly to Congress--
                    (A) on the administration of, and matters 
                pertaining to, the trade agreements program under the 
                Omnibus Trade and Competitiveness Act of 1988, the 
                Trade Act of 1974, the Trade Expansion Act of 1962, 
                section 350 of the Tariff Act of 1930, and any other 
                law relating to trade agreements; and
                    (B) with respect to other issues pertaining to 
                international trade;
            (11) keep each official adviser to the United States 
        delegations to international conferences, meetings, and 
        negotiation sessions relating to trade agreements who is 
        appointed from the Committee on Finance of the Senate or the 
        Committee on Ways and Means of the House of Representatives 
        under section 161 of the Trade Act of 1974 (19 U.S.C. 2211) 
        currently informed on United States negotiating objectives with 
        respect to--
                    (A) trade agreements;
                    (B) the status of negotiations in progress with 
                respect to such agreements; and
                    (C) the nature of any changes in domestic law or 
                the administration thereof that the Trade 
                Representative may recommend to Congress to carry out 
                any trade agreement;
            (12) consult and cooperate with State and local governments 
        and other interested parties on international trade matters of 
        interest to such governments and parties, and to the extent 
        related to international trade matters, on investment matters, 
        and, when appropriate, hold informal public hearings;
            (13) serve as the principal advisor to the President on 
        Government policies designed to contribute to enhancing the 
        ability of United States industry and services to compete in 
        international markets;
            (14) develop recommendations for national strategies and 
        specific policies intended to enhance the productivity and 
        international competitiveness of United States industries;
            (15) serve as the principal advisor to the President in 
        identifying and assessing the consequences of any Government 
        policies that adversely affect, or have the potential to 
        adversely affect, the international competitiveness of United 
        States industries and services;
            (16) promote cooperation between business, labor, and 
        Government to improve industrial performance and the ability of 
        United States industries to compete in international markets 
        and to facilitate consultation and communication between the 
        Government and the private sector about domestic industrial 
        performance and prospects and the performance and prospects of 
        foreign competitors; and
            (17) monitor and enforce foreign government compliance with 
        international trade agreements to protect United States 
        interests.
    (b) Interagency Organization.--The Trade Representative shall be 
the chairperson of the interagency organization established under 
section 242 of the Trade Expansion Act of 1962.
    (c) National Security Council.--The Trade Representative shall be a 
member of the National Security Council.
    (d) Advisory Council.--The Trade Representative shall be Deputy 
Chairman of the National Advisory Council on International Monetary and 
Financial Policies established under Executive Order No. 11269, issued 
February 14, 1966.
    (e) Agriculture.--
            (1) Consultations.--The Trade Representative shall consult 
        with the Secretary of Agriculture or the designee of the 
        Secretary of Agriculture on all matters that potentially 
        involve international trade in agricultural products.
            (2) United states delegation.--If an international meeting 
        for negotiation or consultation includes discussion of 
        international trade in agricultural products, the Trade 
        Representative or the designee of the Trade Representative 
        shall be Chairman of the United States delegation to such 
        meeting and the Secretary of Agriculture or the designee of 
        such Secretary shall be Vice Chairman. The provisions of this 
        paragraph shall not limit the authority of the Trade 
        Representative under subsection (h) to assign to the Secretary 
        of Agriculture responsibility for the conduct of, or 
        participation in, any trade negotiation or meeting.
    (f) Trade Promotion.--The Trade Representative shall be the 
chairperson of the Trade Promotion Coordinating Committee established 
under section 2312 of the Export Enhancement Act of 1988 (15 U.S.C. 
4727).
    (g) National Economic Council.--The Trade Representative shall be a 
member of the National Economic Council established under Executive 
Order No. 12835, issued January 25, 1993.
    (h) International Trade Negotiations.--Except where expressly 
prohibited by law, the Trade Representative, at the request or with the 
concurrence of the head of any other Federal agency, may assign the 
responsibility for conducting or participating in any specific 
international trade negotiation or meeting to the head of such agency 
whenever the Trade Representative determines that the subject matter of 
such international trade negotiation is related to the functions 
carried out by such agency.

                          CHAPTER 2--OFFICERS

SEC. 321. DEPUTY UNITED STATES TRADE REPRESENTATIVES.

    (a) Establishment.--There shall be in the Trade Administration 3 
Deputy United States Trade Representatives, who shall be appointed by 
the President, by and with the advice and consent of the Senate. The 
Deputy United States Trade Representatives shall exercise all functions 
under the direction of the Trade Representative, and shall include--
            (1) the Deputy United States Trade Representative for 
        Negotiations (referred to in this title as the ``Deputy Trade 
        Representative for Negotiations'');
            (2) the Deputy United States Trade Representative to the 
        World Trade Organization (referred to in this title as the 
        ``Deputy Trade Representative to the WTO''); and
            (3) the Deputy United States Trade Representative for 
        Administration (referred to in this title as the ``Deputy Trade 
        Representative for Administration'').
    (b) Functions of Deputy Trade Representatives.--
            (1) Deputy trade representative for negotiations.--The 
        Deputy Trade Representative for Negotiations shall exercise all 
        functions transferred under section 331 relating to trade 
        negotiations and such other functions as the Trade 
        Representative may direct and shall have the rank and status of 
        Ambassador.
            (2) Deputy trade representative to the wto.--The Deputy 
        Trade Representative to the WTO shall exercise all functions 
        relating to representation to the World Trade Organization and 
        shall have the rank and status of Ambassador.
            (3) Deputy trade representative for administration.--
                    (A)  Absence, disability, or vacancy of trade 
                representative.--The Deputy Trade Representative for 
                Administration shall act for and exercise the functions 
                of the Trade Representative during the absence or 
                disability of the Trade Representative or in the event 
                the office of the Trade Representative becomes vacant. 
                The Deputy Administrator shall act for and exercise the 
                functions of the Trade Representative until the absence 
                or disability of the Trade Representative no longer 
                exists or a successor to the Trade Representative has 
                been appointed by the President and confirmed by the 
                Senate.
                    (B) Functions.--The Deputy Trade Representative for 
                Administration shall exercise all functions, under the 
                direction of the Trade Representative, transferred to 
                or established in the Trade Administration, except 
                those functions exercised by the Deputy United States 
                Trade Representatives described in paragraphs (1) and 
                (2), the Assistant Administrator for Export Promotion, 
                the Inspector General of the Trade Administration, and 
                the General Counsel of the Trade Administration.

SEC. 322. ASSISTANT ADMINISTRATORS.

    (a) Establishment.--There shall be in the Trade Administration 4 
Assistant Administrators, who shall be appointed by the President, by 
and with the advice and consent of the Senate. The Assistant 
Administrators shall exercise all functions under the direction of the 
Deputy Trade Representative for Administration and include--
            (1) the Assistant Administrator for Export Administration;
            (2) the Assistant Administrator for Import Administration;
            (3) the Assistant Administrator for Trade and Policy 
        Analysis; and
            (4) the Assistant Administrator for Export Promotion.
    (b) Functions of Assistant Administrators.--
            (1) Export administration.--The Assistant Administrator for 
        Export Administration shall exercise all functions transferred 
        under section 332(1)(C).
            (2) Import administration.--The Assistant Administrator for 
        Import Administration shall exercise all functions transferred 
        under section 332(1)(D).
            (3) Trade and policy analysis.--The Assistant Administrator 
        for Trade and Policy Analysis shall exercise all functions 
        transferred under section 332(1)(B) and all functions 
        transferred under section 332(2).
            (4) Export promotion.--The Assistant Administrator for 
        Export Promotion shall exercise all functions transferred under 
        sections 332(1)(A)(ii) and 333, and shall have the rank and 
        status of Ambassador.

SEC. 323. GENERAL COUNSEL.

    There shall be in the Trade Administration a General Counsel, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate. The General Counsel shall provide legal assistance to 
the Trade Representative concerning the activities, programs, and 
policies of the Trade Administration.

SEC. 324. INSPECTOR GENERAL.

    There shall be in the Trade Administration an Inspector General who 
shall be appointed in accordance with the Inspector General Act of 
1978, as amended by section 371(a) of this Act.

SEC. 325. CHIEF FINANCIAL OFFICER.

    There shall be in the Trade Administration a Chief Financial 
Officer who shall be appointed in accordance with section 901 of title 
31, United States Code, as amended by section 371(e) of this Act. The 
Chief Financial Officer shall perform all functions prescribed by the 
Deputy Trade Representative for Administration, under the direction of 
the Deputy Trade Representative.

            CHAPTER 3--TRANSFERS TO THE TRADE ADMINISTRATION

SEC. 331. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

    (a) Abolishment of Office of the USTR.--Effective on the applicable 
date specified in section 102(c), the Office of the United States Trade 
Representative established by section 141 of the Trade Act of 1974 (19 
U.S.C. 141) as in effect on the day before the applicable date 
specified in section 102(c) is abolished.
    (b) Transfer of Functions.--Except as otherwise provided in this 
Act, all functions that on the day before the applicable date specified 
in section 102(c) are authorized to be performed by the United States 
Trade Representative, any other officer or employee of the Office of 
the United States Trade Representative acting in that capacity, or any 
agency or office of the Office of the United States Trade 
Representative, are transferred to the Trade Administration established 
under this title effective on that date.
    (c) Determination of Certain Functions.--If necessary, the Office 
of Management and Budget shall make any determination of the functions 
that are transferred under this title.

SEC. 332. TRANSFERS FROM THE DEPARTMENT OF COMMERCE.

    There are transferred to the Trade Administration the following 
functions:
            (1) All functions of, and all functions performed under the 
        direction of, the following officers and employees of the 
        Department of Commerce:
                    (A)(i) The Under Secretary of Commerce for 
                International Trade.
                    (ii) The Director General of the United States and 
                Foreign Commercial Service, relating to all functions 
                exercised by the Service.
                    (B) The Assistant Secretary of Commerce for 
                International Economic Policy and the Assistant 
                Secretary of Commerce for Trade Development.
                    (C) The Under Secretary of Commerce for Export 
                Administration.
                    (D) The Assistant Secretary of Commerce for Import 
                Administration.
            (2) All functions of the Secretary of Commerce relating to 
        the National Trade Data Bank.
            (3) All functions of the Secretary of Commerce under the 
        Tariff Act of 1930, the Uruguay Round Agreements Act, the Trade 
        Act of 1974, and other Acts relating to international trade for 
        which responsibility is not otherwise assigned under this 
        title.

SEC. 333. TRADE AND DEVELOPMENT AGENCY.

    There are transferred to the Assistant Administrator for Export 
Promotion all functions of the Trade and Development Agency and all 
functions of the Director of the Trade and Development Agency.

SEC. 334. EXPORT-IMPORT BANK.

    (a) In General.--
            (1) Transfer of functions.--There are transferred to the 
        Trade Representative all functions of the Secretary of Commerce 
        relating to the Export-Import Bank of the United States.
            (2) Conforming amendment.--Section 3(c)(1) of the Export-
        Import Bank Act of 1945 (12 U.S.C. 635a(c)(1)) is amended to 
        read as follows:
    ``(c)(1) There shall be a Board of Directors of the Bank consisting 
of the United States Trade Representative (who shall serve as 
Chairman), the President of the Export-Import Bank of the United States 
(who shall serve as Vice Chairman), the first Vice President, and 2 
additional persons appointed by the President of the United States, by 
and with the advice and consent of the Senate.''.
    (b) Ex Officio Member of Export-Import Bank Board of Directors.--
The Assistant Administrator for Export Promotion shall serve as an ex 
officio nonvoting member of the Board of Directors of the Export-Import 
Bank.
    (c) Amendments to Related Banking and Trade Acts.--Section 2301(h) 
of the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 
4721(h)) is amended to read as follows:
    ``(h) Assistance to Export-Import Bank.--The Commercial Service 
shall provide such services as the Assistant Administrator for Export 
Promotion of the United States Trade Administration determines 
necessary to assist the Export-Import Bank of the United States to 
carry out the lending, loan guarantee, insurance, and other activities 
of the Bank.''.

SEC. 335. OVERSEAS PRIVATE INVESTMENT CORPORATION.

    (a) Board of Directors.--The second and third sentences of section 
233(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2193(b)) are 
amended to read as follows: ``The United States Trade Representative 
shall be the Chairman of the Board. The Administrator of the Agency for 
International Development (who shall serve as Vice Chairman) shall 
serve on the Board.''.
    (b) Ex Officio Member of Overseas Private Investment Corporation 
Board of Directors.--The Assistant Administrator for Export Promotion 
of the United States Trade Administration shall serve as an ex officio 
nonvoting member of the Board of Directors of the Overseas Private 
Investment Corporation.

SEC. 336. CONSOLIDATION OF EXPORT PROMOTION AND FINANCING ACTIVITIES.

    (a) Submission of Plan.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the President shall transmit to Congress 
        a comprehensive plan--
                    (A) to consolidate Federal nonagricultural export 
                promotion activities and export financing activities; 
                and
                    (B) to transfer those functions to the Trade 
                Administration.
            (2) Contents of plan.--The plan under paragraph (1) shall 
        provide for--
                    (A) the elimination of overlap and duplication 
                among all Federal nonagricultural export promotion 
                activities and export financing activities;
                    (B) a unified budget for all Federal 
                nonagricultural export promotion activities which 
                eliminates funding for overlapping and duplicative 
                activities identified under subparagraph (A); and
                    (C) a long-term agenda for developing better 
                cooperation between local, State, and Federal programs 
                and activities designed to stimulate or assist United 
                States businesses in exporting nonagricultural goods or 
                services that are products of the United States, 
                including sharing of facilities, costs, and export 
                market research data.
    (b) Plan Elements.--The plan under subsection (a) shall--
            (1) place all Federal nonagricultural export promotion 
        activities and export financing activities within the Trade 
        Administration;
            (2) achieve an overall 25 percent reduction in the amount 
        of funding for all Federal nonagricultural export promotion 
        activities by not later than 2 years after the date of 
        enactment of this Act;
            (3) identify any function of the Department of Commerce or 
        of any other Federal department not transferred to the Trade 
        Administration by this title, which should be transferred to 
        the Trade Administration in order to ensure United States 
        competitiveness in international trade; and
            (4) assess the feasibility and potential savings resulting 
        from--
                    (A) the consolidation of the Export-Import Bank of 
                the United States and the Overseas Private Investment 
                Corporation;
                    (B) the consolidation of the Boards of Directors of 
                the Export-Import Bank and the Overseas Private 
                Investment Corporation; and
                    (C) the consolidation of the Trade and Development 
                Agency with the consolidations described in 
                subparagraphs (A) and (B).
    (c) Definition.--As used in this section, the term ``Federal 
nonagricultural export promotion activities'' means all programs or 
activities of any department or agency of the Federal Government 
(including trade missions, and departments and agencies with 
representatives on the Trade Promotion Coordinating Committee 
established under section 2312 of the Export Enhancement Act of 1988 
(15 U.S.C. 4727)), that are designed to stimulate or assist United 
States businesses in exporting nonagricultural goods or services that 
are products of the United States.

SEC. 337. FUNCTIONS RELATED TO TEXTILE AGREEMENTS.

    (a) Functions of CITA.--
            (1) In general.--Subject to paragraph (2), those functions 
        delegated to the Committee for the Implementation of Textile 
        Agreements established under Executive Order No. 11651 (7 
        U.S.C. 1854 note) (in this subsection referred to as ``CITA'') 
        are transferred to the Trade Administration.
            (2) Other functions.--Those functions delegated to CITA 
        that relate to the assessment of the impact of textile imports 
        on domestic industry are transferred to the International Trade 
        Commission. The International Trade Commission shall make a 
        determination and advise the President of the determination not 
        later than 60 days after receiving a request for an 
        investigation.
    (b) Abolition of CITA.--CITA is abolished.

                  CHAPTER 4--ADMINISTRATIVE PROVISIONS

SEC. 341. PERSONNEL PROVISIONS.

    (a) Appointments.--The Trade Representative may appoint and fix the 
compensation of such officers and employees, including investigators, 
attorneys, and administrative law judges, as may be necessary to carry 
out the functions of the Trade Representative and the Trade 
Administration. Except as otherwise provided by law, such officers and 
employees shall be appointed in accordance with the civil service laws 
and their compensation fixed in accordance with title 5, United States 
Code.
    (b) Positions Above GS-15.--
            (1) In general.--At the request of the Trade 
        Representative, the Director of the Office of Personnel 
        Management shall, under section 5108 of title 5, United States 
        Code, provide for the establishment in a grade level above GS-
        15 of the General Schedule, and in the Senior Executive 
        Service, of a number of positions in the Trade Administration 
        equal to the number of positions in that grade level which--
                    (A) were used primarily for the performance of 
                functions and offices transferred by this title; and
                    (B) were assigned and filled on the day before the 
                effective date of this title.
            (2) Appointments.--Appointments to positions provided for 
        under this subsection may be made without regard to the 
        provisions of section 3324 of title 5, United States Code, if 
        the individual appointed to such position is an individual who 
        is transferred in connection with the transfer of functions and 
        offices pursuant to this title and, on the day before the 
        effective date of this title, holds a position and has duties 
        comparable to those of the position to which appointed pursuant 
        to this subsection.
            (3) Termination of authority.--The authority under this 
        subsection with respect to any position established at a grade 
        level above GS-15 shall terminate when the person first 
        appointed to fill such position ceases to hold such position.
            (4) Exception to executive position limitation.--For 
        purposes of section 414(a)(3)(A) of the Civil Service Reform 
        Act of 1978, an individual appointed under this subsection 
        shall be deemed to occupy the same position as the individual 
        occupied on the day before the effective date of this title.
    (c) Experts and Consultants.--The Trade Representative may obtain 
the services of experts and consultants in accordance with section 3109 
of title 5, United States Code, and compensate such experts and 
consultants for each day (including traveltime) at rates not in excess 
of the maximum rate of pay for a position above GS-15 of the General 
Schedule under section 5332 of such title. The Trade Representative may 
pay experts and consultants who are serving away from their homes or 
regular place of business travel expenses and per diem in lieu of 
subsistence at rates authorized by sections 5702 and 5703 of such title 
for persons in Government service employed intermittently.
    (d) Voluntary Services.--
            (1) In general.--
                    (A) Voluntary services under title 31.--The Trade 
                Representative is authorized to accept voluntary and 
                uncompensated services without regard to the provisions 
                of section 1342 of title 31, United States Code, if 
                such services will not be used to displace Federal 
                employees employed on a full-time, part-time, or 
                seasonal basis.
                    (B) Voluntary services under title 5.--The Trade 
                Representative is authorized to accept volunteer 
                service in accordance with the provisions of section 
                3111 of title 5, United States Code.
            (2) Payment of expenses.--The Trade Representative is 
        authorized to provide for incidental expenses, including 
        transportation, lodging, and subsistence for individuals who 
        provide voluntary services under subparagraph (A) or (B) of 
        paragraph (1).
            (3) Limitation.--An individual who provides voluntary 
        services under paragraph (1)(A) shall not be considered a 
        Federal employee for any purpose other than for purposes of 
        chapter 81 of title 5, United States Code, relating to 
        compensation for work injuries, and chapter 171 of title 28, 
        United States Code, relating to tort claims.

SEC. 342. DELEGATION AND ASSIGNMENT.

    Except as otherwise expressly prohibited by law or otherwise 
provided by this title, the Trade Representative may delegate any of 
the functions transferred to the Trade Representative by this title and 
any function transferred or granted to the Trade Representative after 
the effective date of this title to such officers and employees of the 
Trade Administration as the Trade Representative may designate, and may 
authorize successive redelegations of such functions as may be 
necessary or appropriate. No delegation of functions by the Trade 
Representative under this section or under any other provision of this 
title shall relieve the Trade Representative of responsibility for the 
administration of such functions.

SEC. 343. SUCCESSION.

    (a) Order of Succession.--Subject to the authority of the 
President, and except as provided in section 321(b), the Trade 
Representative shall prescribe the order by which officers of the Trade 
Administration who are appointed by the President, by and with the 
advice and consent of the Senate, shall act for, and perform the 
functions of, the Trade Representative or any other officer of the 
Trade Administration appointed by the President, by and with the advice 
and consent of the Senate, during the absence or disability of the 
Trade Representative or such other officer, or in the event of a 
vacancy in the office of the Trade Representative or such other 
officer.
    (b) Continuation.--Notwithstanding any other provision of law, and 
unless the President directs otherwise, an individual acting for the 
Trade Representative or another officer of the Trade Administration 
pursuant to subsection (a) shall continue to serve in that capacity 
until the absence or disability of the Trade Representative or such 
other officer no longer exists or a successor to the Trade 
Representative or such other officer has been appointed by the 
President and confirmed by the Senate.

SEC. 344. REORGANIZATION.

    (a) In General.--Subject to subsection (b), the Trade 
Representative is authorized to allocate or reallocate functions among 
the officers of the Trade Administration, and to establish, 
consolidate, alter, or discontinue such organizational entities in the 
Trade Administration as may be necessary or appropriate.
    (b) Exception.--The Trade Representative may not exercise the 
authority under subsection (a) to establish, consolidate, alter, or 
discontinue any organizational entity in the Trade Administration or 
allocate or reallocate any function of an officer or employee of the 
Trade Administration that is inconsistent with any specific provision 
of this title.

SEC. 345. RULES.

    The Trade Representative is authorized to prescribe, in accordance 
with the provisions of chapters 5 and 6 of title 5, United States Code, 
such rules and regulations as the Trade Representative determines 
necessary or appropriate to administer and manage the functions of the 
Trade Representative or the Trade Administration.

SEC. 346. FUNDS TRANSFER.

    The Trade Representative may, when authorized in an appropriation 
Act in any fiscal year, transfer funds from one appropriation to 
another within the Trade Administration, except that--
            (1) no appropriation for any fiscal year shall be either 
        increased or decreased by more than 10 percent; and
            (2) no such transfer shall result in increasing any such 
        appropriation above the amount authorized to be appropriated 
        for that purpose.

SEC. 347. CONTRACTS, GRANTS, AND COOPERATIVE AGREEMENTS.

    (a) In General.--Subject to the provisions of the Federal Property 
and Administrative Services Act of 1949, the Trade Representative may 
make, enter into, and perform such contracts, leases, cooperative 
agreements, grants, or other similar transactions with public agencies, 
private organizations, and persons, and make payments (in lump sum or 
installments, and by way of advance or reimbursement, and, in the case 
of any grant, with necessary adjustments on account of overpayments and 
underpayments) as the Trade Representative considers necessary or 
appropriate to carry out the functions of the Trade Representative or 
the Trade Administration.
    (b) Exception.--Notwithstanding any other provision of this title, 
the authority to enter into contracts or to make payments under this 
chapter shall be effective only to such extent, or in such amounts, as 
are provided in advance in appropriation Acts. This subsection does not 
apply with respect to the authority granted under section 349.

SEC. 348. USE OF FACILITIES.

    (a) Use by Trade Representative.--In carrying out any function of 
the Trade Representative or the Trade Administration, the Trade 
Representative, with or without reimbursement, may use the research, 
services, equipment, and facilities of--
            (1) an individual;
            (2) any public or private nonprofit agency or organization, 
        including any agency or instrumentality of the United States or 
        of any State, the District of Columbia, the Commonwealth of 
        Puerto Rico, or any territory or possession of the United 
        States;
            (3) any political subdivision of any State, the District of 
        Columbia, the Commonwealth of Puerto Rico, or any territory or 
        possession of the United States; or
            (4) any foreign government.
    (b) Use of Trade Representative Facilities.--The Trade 
Representative, under terms, at rates, and for periods that the Trade 
Representative considers to be in the public interest, may permit the 
use by public and private agencies, corporations, associations or other 
organizations, or individuals, of any real property, or any facility, 
structure or other improvement thereon, under the custody of the Trade 
Representative. The Trade Representative may require permittees under 
this section to maintain or recondition, at their own expense, the real 
property, facilities, structures, and improvements used by such 
permittees.

SEC. 349. GIFTS AND BEQUESTS.

    (a) In General.--The Trade Representative is authorized to accept, 
hold, administer, and utilize gifts and bequests of property, both real 
and personal, for the purpose of aiding or facilitating the work of the 
Trade Administration. Gifts and bequests of money and the proceeds from 
sales of other property received as gifts or bequests shall be 
deposited in the United States Treasury in a separate fund and shall be 
disbursed on order of the Trade Representative. Property accepted 
pursuant to this subsection, and the proceeds thereof, shall be used as 
nearly as possible in accordance with the terms of the gift or bequest.
    (b) Tax Treatment.--For the purpose of Federal income, estate, and 
gift taxes, and State taxes, property accepted under subsection (a) 
shall be considered a gift or bequest to or for the use of the United 
States.
    (c) Investment.--
            (1) In general.--Upon the request of the Trade 
        Representative, the Secretary of the Treasury may invest and 
        reinvest in securities of the United States or in securities 
        guaranteed as to principal and interest by the United States 
        any moneys contained in the fund provided for in subsection 
        (a).
            (2) Treatment of income.--Income accruing from the 
        securities referred to in paragraph (1), and from any other 
        property held by the Trade Representative pursuant to 
        subsection (a), shall--
                    (A) be deposited to the credit of the fund; and
                    (B) be disbursed upon order of the Trade 
                Representative.

SEC. 350. WORKING CAPITAL FUND.

    (a) Establishment.--The Trade Representative is authorized to 
establish for the Trade Administration a working capital fund, to be 
available without fiscal year limitation, for expenses necessary for 
the maintenance and operation of such common administrative services as 
the Trade Representative shall find to be desirable in the interest of 
economy and efficiency, including--
            (1) a central supply service for stationery and other 
        supplies and equipment for which adequate stocks may be 
        maintained to meet in whole or in part the requirements of the 
        Trade Administration and its components;
            (2) central messenger, mail, and telephone service and 
        other communications services;
            (3) office space and central services for document 
        reproduction and for graphics and visual aids;
            (4) a central library service; and
            (5) such other services as may be approved by the Director 
        of the Office of Management and Budget.
    (b) Operation of Fund.--
            (1) In general.--The capital of the fund shall consist of 
        any appropriations made for the purpose of providing working 
        capital and the fair and reasonable value of such stocks of 
        supplies, equipment, and other assets and inventories on order 
        as the Trade Representative may transfer to the fund, less the 
        related liabilities and unpaid obligations.
            (2) Advance reimbursements.--The fund shall be reimbursed 
        in advance from available funds of agencies and offices in the 
        Trade Administration, or from other sources, for supplies and 
        services at rates which will approximate the expense of 
        operation, including the accrual of annual leave and the 
        depreciation of equipment.
            (3) Other credits.--In addition to the credits made under 
        paragraph (1), the fund shall be credited with receipts from 
        sale or exchange of property and receipts in payment for loss 
        or damage to property owned by the fund.
            (4) Surplus.--There shall be covered into the United States 
        Treasury as miscellaneous receipts any surplus of the fund (all 
        assets, liabilities, and prior losses considered) above the 
        amounts transferred or appropriated to establish and maintain 
        the fund.
            (5) Transfers to fund.--There shall be transferred to the 
        fund the stocks of supplies, equipment, other assets, 
        liabilities, and unpaid obligations relating to those services 
        which the Trade Representative determines will be performed.

SEC. 351. SERVICE CHARGES.

    (a) Authority.--Notwithstanding any other provision of law, the 
Trade Representative may establish reasonable fees and commissions with 
respect to applications, documents, awards, loans, grants, research 
data, services, and assistance administered by the Trade 
Administration. The Trade Representative may change and abolish such 
fees and commissions. Before establishing, changing, or abolishing any 
schedule of fees or commissions under this section, the Trade 
Representative may submit such schedule to Congress.
    (b) Deposits.--The Trade Representative is authorized to require a 
deposit before the Trade Representative provides any item, information, 
service, or assistance for which a fee or commission is required under 
this section.
    (c) Deposit of Moneys.--Moneys received under this section shall be 
deposited in the Treasury in a special account for use by the Trade 
Representative and are authorized to be appropriated and made available 
until expended.
    (d) Factors in Establishing Fees and Commissions.--In establishing 
reasonable fees or commissions under this section, the Trade 
Representative may take into account--
            (1) the actual costs which will be incurred in providing 
        the items, information, services, or assistance concerned;
            (2) the efficiency of the Government in providing such 
        items, information, services, or assistance;
            (3) the portion of the cost that will be incurred in 
        providing such items, information, services, or assistance 
        which may be attributed to benefits for the general public 
        rather than exclusively for the person to whom the items, 
        information, services, or assistance is provided;
            (4) any public service which occurs through the provision 
        of such items, information, services, or assistance; and
            (5) such other factors as the Trade Representative 
        considers appropriate.
    (e) Refunds of Excess Payments.--In any case in which the Trade 
Representative determines that any person has made a payment which is 
not required under this section or has made a payment which is in 
excess of the amount required under this section, the Trade 
Representative, upon application or otherwise, may cause a refund to be 
made from applicable funds.

SEC. 352. SEAL OF OFFICE.

    The Trade Representative shall cause a seal of office to be made 
for the Trade Administration of such design as the Trade Representative 
shall approve. Judicial notice shall be taken of such seal.

                      CHAPTER 5--RELATED AGENCIES

SEC. 361. INTERAGENCY TRADE ORGANIZATION.

    Section 242(a)(3) of the Trade Expansion Act of 1962 (19 U.S.C. 
1872(a)(3)) is amended to read as follows:
            ``(3)(A) The interagency organization established under 
        subsection (a) shall be composed of--
                    ``(i) the United States Trade Representative, who 
                shall be the chairperson,
                    ``(ii) the Secretary of Agriculture,
                    ``(iii) the Secretary of the Treasury,
                    ``(iv) the Secretary of Labor,
                    ``(v) the Secretary of State, and
                    ``(vi) the representatives of such other 
                departments and agencies as the United States Trade 
                Representative shall designate.
            ``(B) The United States Trade Representative may invite 
        representatives from other agencies, as appropriate, to attend 
        particular meetings if subject matters of specific functional 
        interest to such agencies are under consideration. It shall 
        meet at such times and with respect to such matters as the 
        President or the chairperson shall direct.''.

SEC. 362. NATIONAL SECURITY COUNCIL.

    The fourth paragraph of section 101(a) of the National Security Act 
of 1947 (50 U.S.C. 402(a)) is amended--
            (1) by redesignating paragraphs (5), (6), and (7) as 
        paragraphs (6), (7), and (8), respectively; and
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) the United States Trade Representative;''.

SEC. 363. INTERNATIONAL MONETARY FUND.

    Section 3 of the Bretton Woods Agreement Act (22 U.S.C. 286a) is 
amended by adding at the end the following new subsection:
    ``(e) The United States executive director of the Fund shall 
consult with the United States Trade Representative with respect to 
matters under consideration by the Fund which relate to trade.''.

                    CHAPTER 6--CONFORMING AMENDMENTS

SEC. 371. AMENDMENTS TO GENERAL PROVISIONS.

    (a) Inspector General.--The Inspector General Act of 1978 (5 U.S.C. 
App. 1 et seq.) is amended--
            (1) in section 9(a)(1) by adding after subparagraph (W) the 
        following:
                    ``(X) of the United States Trade Representative, 
                all functions of the Inspector General of the 
                Department of Commerce and the Office of the Inspector 
                General of the Department of Commerce relating to the 
                functions transferred to the United States Trade 
                Representative by section 332 of the Department of 
                Commerce Dismantling Act; and''; and
            (2) in section 11--
                    (A) in paragraph (1) by inserting ``the United 
                States Trade Representative;'' after ``the Attorney 
                General;''; and
                    (B) in paragraph (2) by inserting ``the United 
                States Trade Administration,'' after ``Treasury;''.
    (b) Amendment to the Trade Act of 1974.--
            (1) Trade negotiations.--Chapter 4 of title I of the Trade 
        Act of 1974 (19 U.S.C. 2171) is amended to read as follows:

  ``CHAPTER 4--ADMINISTRATION OF TRADE AGREEMENTS, REPRESENTATION IN 
              TRADE NEGOTIATIONS, AND OTHER TRADE MATTERS

``SEC. 141. FUNCTIONS OF THE UNITED STATES TRADE REPRESENTATIVE.

    ``The United States Trade Representative, established under section 
311 of the Department of Commerce Dismantling Act, shall--
            ``(1) be the chief representative of the United States for 
        each trade negotiation under this title or chapter 1 of title 
        III of this Act, or subtitle A of title I of the Omnibus Trade 
        and Competitiveness Act of 1988, or any other provision of law 
        relating to international trade negotiations;
            ``(2) be responsible for the administration of trade 
        agreement programs under this Act, the Omnibus Trade and 
        Competitiveness Act of 1988, the Trade Expansion Act of 1962, 
        section 350 of the Tariff Act of 1930, and any other provision 
        of law relating to trade agreement programs;
            ``(3) advise the President and Congress with respect to 
        nontariff barriers to international trade, international 
        commodity agreements, and other matters which are related to 
        trade agreement programs; and
            ``(4) be responsible for making reports to the President 
        and Congress with respect to the matters set forth in 
        paragraphs (1) and (2).''.
            (2) Table of contents.--Title I of the table of contents of 
        the Trade Act of 1974 is amended by striking the items relating 
        to chapter 4 and section 141 and inserting:

  ``Chapter 4--Administration of Trade Agreements, Representation in 
              Trade Negotiations, and Other Trade Matters

``Sec. 141. Functions of the United States Trade Representative.''.
    (d) Foreign Service Personnel.--Section 202(a) of the Foreign 
Service Act of 1980 (22 U.S.C. 3922(a)) is amended by striking 
paragraph (3) and inserting:
            ``(3) The United States Trade Representative may utilize 
        the Foreign Service personnel system in accordance with this 
        Act--
                    ``(A) with respect to the personnel performing 
                functions--
                            ``(i) which were transferred to the 
                        Department of Commerce from the Department of 
                        State by Reorganization Plan No. 3 of 1979; and
                            ``(ii) which were subsequently transferred 
                        to the United States Trade Representative by 
                        section 332 of the Department of Commerce 
                        Dismantling Act; and
                    ``(B) with respect to other personnel of the United 
                States Trade Administration to the extent the President 
                determines to be necessary in order to enable the 
                United States Trade Administration to carry out 
                functions which require service abroad.''.
    (e) Chief Financial Officers.--Section 901(b)(1)(B) of title 31, 
United States Code, is amended to read as follows:
                    ``(B) The Trade Administration.''.

SEC. 372. REPEALS.

    (a) Department of Commerce.--The first section of the Act entitled 
``An Act to establish the Department of Commerce and Labor'', approved 
February 14, 1903 (15 U.S.C. 1501), is repealed.
    (b) Under Secretary; Assistant Secretaries; Other Positions.--
            (1) Subsection (a) of the first section of the Act entitled 
        ``An Act to authorize an Under Secretary of Commerce for 
Economic Affairs'', approved June 16, 1982 (96 Stat. 115; 15 U.S.C. 
1503a), is repealed.
            (2) The Act entitled ``An Act to provide for the 
        appointment of one additional Assistant Secretary of Commerce, 
        and for other purposes'', approved July 15, 1947 (15 U.S.C. 
        1505), is repealed.
            (3) The first sentence of section 304 of the Department of 
        Commerce Appropriation Act, 1955 (15 U.S.C. 1506), is repealed.
            (4) The Act entitled ``An Act to authorize an additional 
        Assistant Secretary of Commerce'', approved February 16, 1962 
        (15 U.S.C. 1507), is repealed.
            (5) Subsection (a) of section 9 of the Maritime 
        Appropriation Authorization Act for Fiscal Year 1978 (15 U.S.C. 
        1507b), is repealed.
            (6)(A) The first section of the Act of March 18, 1904 (33 
        Stat. 135, chapter 716; 15 U.S.C. 1508), is repealed.
            (B) Section 2 of the Act of July 17, 1952 (66 Stat. 758, 
        chapter 932; 15 U.S.C. 1508), is repealed.
    (c) Bureaus in Department.--
            (1) Sections 4 and 12 of the Act entitled ``An Act to 
        Establish the Department of Commerce and Labor'', approved 
        February 14, 1903 (15 U.S.C. 1511), are repealed.
            (2) The first section of the Act of January 5, 1923 (42 
        Stat. 1109, chapter 23; 15 U.S.C. 1511), is repealed.
            (3) The first section of the Act of May 27, 1936 (49 Stat. 
        1380, chapter 463; 15 U.S.C. 1511), is repealed.
    (d) Annual Reports.--Section 8 of the Act entitled ``An Act to 
Establish the Department of Commerce and Labor'', approved February 14, 
1903 (15 U.S.C. 1519), is repealed.
    (e) Working Capital Fund.--Title III of the Act entitled ``An Act 
making appropriations for the Departments of State, Justice, and 
Commerce for the fiscal year ending June 30, 1945, and for other 
purposes'', approved June 28, 1944 (15 U.S.C. 1521), is amended by 
striking the paragraph relating to the working capital fund of the 
Department of Commerce.
    (f) Gifts, Bequests, Investments.--Sections 1, 2, and 3 of Public 
Law 88-611 (15 U.S.C. 1522, 1523, and 1524) are repealed.

SEC. 373. CONFORMING AMENDMENTS RELATING TO EXECUTIVE SCHEDULE 
              POSITIONS.

    (a) Positions at Level II.--Section 5313 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Deputy United States Trade Representatives (3).''.
    (b) Positions at Level III.--Section 5314 of title 5, United States 
Code, is amended by striking the item relating to Deputy United States 
Trade Representatives and inserting the following:
            ``Assistant Administrators, United States Trade 
        Administration (4).''.
    (c) Positions at Level IV.--Section 5315 of title 5, United States 
Code, is amended by adding at the end the following:
            ``General Counsel, United States Trade Administration.
            ``Inspector General, United States Trade Administration.
            ``Chief Financial Officer, United States Trade 
        Administration.''.

                        CHAPTER 7--MISCELLANEOUS

SEC. 381. EFFECTIVE DATE.

    (a) In General.--This title shall take effect on the effective date 
specified in section 102(c), except that--
            (1) section 336 shall take effect on the date of enactment 
        of this Act; and
            (2) at any time after the date of enactment of this Act the 
        officers provided for in chapter 2 may be nominated and 
        appointed, as provided in such chapter.
    (b) Interim Compensation and Expenses.--Funds available to the 
Department of Commerce or the Office of the United States Trade 
Representative (or any official or component thereof), with respect to 
the functions transferred by this title, may be used, with approval of 
the Director of the Office of Management and Budget, to pay the 
compensation and expenses of an officer appointed under subsection (a) 
who will carry out such functions until funds for that purpose are 
otherwise available.

SEC. 382. INTERIM APPOINTMENTS.

    (a) In General.--If one or more officers required by this title to 
be appointed by and with the advice and consent of the Senate have not 
entered upon office on the effective date of this title and 
notwithstanding any other provision of law, the President may designate 
any officer who was appointed by and with the advice and consent of the 
Senate, and who was such an officer on the day before the effective 
date of this title, to act in the office until it is filled as provided 
by this title.
    (b) Compensation.--Any officer acting in an office pursuant to 
subsection (a) shall receive compensation at the rate prescribed by 
this title for such office.

SEC. 383. FUNDING REDUCTIONS RESULTING FROM REORGANIZATION.

    (a) Funding Reductions.--Notwithstanding the transfer of functions 
under this title, and except as provided in subsection (b), the total 
amount appropriated by the United States in performing all functions 
vested in the Trade Representative and the Trade Administration 
pursuant to this title shall not exceed--
            (1) for the first fiscal year that begins after the date 
        specified in section 102(c), 75 percent of the total amount 
        appropriated in fiscal year 1998 for the performance of all 
        those functions; and
            (2) for the second fiscal year that begins after the date 
        specified in section 102(c) and for each fiscal year 
        thereafter, 65 percent of the total amount appropriated in 
        fiscal year 1998 for the performance of all those functions.
    (b) Exception.--Subsection (a) shall not apply to obligations or 
expenditures incurred as a direct consequence of the termination, 
transfer, or other disposition of functions described in subsection (a) 
pursuant to this Act.
    (c) Rule of Construction.--This section shall supersede any other 
provision of law that does not--
            (1) explicitly refer to this section, and
            (2) create an exemption from this section.
    (d) Responsibility of Trade Representative.--The Trade 
Representative, in consultation with the Director of the Office of 
Management and Budget, shall make such modifications in programs as are 
necessary to carry out the reductions in appropriations set forth in 
paragraphs (1) and (2) of subsection (a).
    (e) Responsibilities of the Director of the Office of Management 
and Budget.--The Director of the Office of Management and Budget shall 
include in each report under subsections (a) and (b) of section 106 a 
description of the actions taken to comply with the requirements of 
this section.

       TITLE IV--UNITED STATES PATENT AND TRADEMARK ORGANIZATION

      Subtitle A--United States Patent and Trademark Organization

SEC. 401. SHORT TITLE.

    This subtitle may be cited as the ``United States Patent and 
Trademark Organization Act of 1997''.

  CHAPTER 1--ESTABLISHMENT OF THE UNITED STATES PATENT AND TRADEMARK 
                              ORGANIZATION

SEC. 411. ESTABLISHMENT OF THE UNITED STATES PATENT AND TRADEMARK 
              ORGANIZATION AS A GOVERNMENT CORPORATION.

    (a) Establishment.--The United States Patent and Trademark 
Organization is established as a wholly owned Government corporation 
subject to chapter 91 of title 31, separate from any department.
    (b) Offices.--The United States Patent and Trademark Organization 
shall maintain its principal office in the District of Columbia, or the 
metropolitan area thereof, for the service of process and papers and 
for the purpose of carrying out its powers, duties, and obligations 
under this subtitle. The United States Patent and Trademark 
Organization shall be deemed, for purposes of venue in civil actions, 
to be a resident of the district in which its principal office is 
located except where jurisdiction is otherwise provided by law. The 
United States Patent and Trademark Organization may establish satellite 
offices in such places within the United States as it considers 
necessary and appropriate in the conduct of its business.
    (c) Reference.--For purposes of this subtitle, a reference to the 
``Organization'' shall be a reference to the United States Patent and 
Trademark Organization, unless the context provides otherwise.

SEC. 412. POWERS AND DUTIES.

    (a) In General.--The United States Patent and Trademark 
Organization, shall be responsible for--
            (1) the granting and issuing of patents and the 
        registration of trademarks;
            (2) conducting studies, programs, or exchanges of items or 
        services regarding domestic and international patent and 
        trademark law, the administration of the Organization, or any 
        other function vested in the Organization by law, including 
        programs to recognize, identify, assess, and forecast the 
        technology of patented inventions and their utility to 
        industry;
            (3)(A) authorizing or conducting studies and programs 
        cooperatively with foreign patent and trademark offices and 
        international organizations, in connection with the granting 
        and issuing of patents and the registration of trademarks; and
            (B) with the concurrence of the Secretary of State, 
        authorizing the transfer of not to exceed $100,000 in any year 
        to the Department of State for the purpose of making special 
        payments to international intergovernmental organizations for 
        studies and programs for advancing international cooperation 
        concerning patents, trademarks, and related matters; and
            (4) disseminating to the public information with respect to 
        patents and trademarks.
    (b) Special Payments.--The special payments under subsection 
(a)(3)(B) may be in addition to any other payments or contributions to 
international organizations and shall not be subject to any limitations 
imposed by law on the amounts of such other payments or contributions 
by the United States Government.
    (c) Specific Powers.--The Organization--
            (1) shall have perpetual succession;
            (2) shall adopt and use a corporate seal, which shall be 
        judicially noticed and with which letters patent, certificates 
        of trademark registrations, and papers issued by the 
        Organization shall be authenticated;
            (3) may sue and be sued in its corporate name and be 
        represented by its own attorneys in all judicial and 
        administrative proceedings, subject to the provisions of 
        section 416;
            (4) may indemnify the Director of the United States Patent 
        and Trademark Organization, the Commissioner of Patents, the 
        Commissioner of Trademarks, and other officers, attorneys, 
        agents, and employees (including members of the Management 
        Advisory Boards of the Patent Office and the Trademark Office) 
        of the Organization for liabilities and expenses incurred 
        within the scope of their employment;
            (5) may adopt, amend, and repeal bylaws, rules, 
        regulations, and determinations, which--
                    (A) shall govern the manner in which its business 
                will be conducted and the powers granted to it by law 
                will be exercised; and
                    (B) shall be made after notice and opportunity for 
                full participation by interested public and private 
                parties;
            (6)(A) may acquire, construct, purchase, lease, hold, 
        manage, operate, improve, alter, and renovate any real, 
        personal, or mixed property, or any interest therein, as it 
        considers necessary to carry out its functions; and
            (B) sell, lease, grant, and dispose of such property as it 
        considers necessary to effectuate the purposes of this title;
            (7)(A) may make such purchases, contracts for the 
        construction, maintenance, or management and operation of 
        facilities, and contracts for supplies or services, without 
        regard to the provisions of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), 
        the Public Buildings Act (40 U.S.C. 601 et seq.), and the 
        Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301 et 
        seq.); and
            (B) may enter into and perform such purchases and contracts 
        for printing services, including the process of composition, 
        platemaking, presswork, silk screen processes, binding, 
        microform, and the products of such processes, as it considers 
        necessary to carry out the functions of the Organization, 
        without regard to sections 501 through 517 and 1101 through 
        1123 of title 44, United States Code;
            (8) may use, with their consent, services, equipment, 
        personnel, and facilities of other departments, agencies, and 
        instrumentalities of the Federal Government, on a reimbursable 
        basis, and cooperate with such other departments, agencies, and 
        instrumentalities in the establishment and use of services, 
        equipment, and facilities of the Organization;
            (9) may obtain from the Administrator of General Services 
        such services as the Administrator is authorized to provide to 
        other agencies of the United States, on the same basis as those 
        services are provided to other agencies of the United States;
            (10) may use, with the consent of the United States and the 
        agency, government, or international organization concerned, 
        the services, records, facilities, or personnel of any State or 
        local government agency or instrumentality or foreign 
        government or international organization to perform functions 
        on its behalf;
            (11) may determine the character of, and the necessity for, 
        its obligations and expenditures and the manner in which they 
        shall be incurred, allowed, and paid, subject to the provisions 
        of title 35, United States Code and the Act of July 5, 1946 
        (commonly referred to as the Trademark Act of 1946);
            (12) may retain and use all of its revenues and receipts, 
        including revenues from the sale, lease, or disposal of any 
        real, personal, or mixed property, or any interest therein, of 
        the Organization, including for research and development and 
        capital investment, subject to the provisions of section 10101 
        of the Omnibus Budget Reconciliation Act of 1990 (35 U.S.C. 41 
        note);
            (13) shall have the priority of the United States with 
        respect to the payment of debts from bankrupt, insolvent, and 
        decedents' estates;
            (14) may accept monetary gifts or donations of services, or 
        of real, personal, intellectual, or mixed property, in order to 
        enhance libraries and museums operated by the Organization, 
        support the educational programs of the Organization, or 
        otherwise carry out the functions of the Organization;
            (15) may execute, in accordance with its bylaws, rules, and 
        regulations, all instruments necessary and appropriate in the 
        exercise of any of its powers; and
            (16) may provide for liability insurance and insurance 
        against any loss in connection with its property, other assets, 
        or operations either by contract or by self-insurance.
    (d) Restrictions on Gifts.--Any acceptance of a gift or donation 
under subsection (c)(14) shall be subject to section 201 of title 18, 
United States Code. The Director shall establish regulations for the 
acceptance of such gifts and donations including regulations 
prohibiting gifts or donations to the Organization by foreign 
countries.
    (e) Rule of Construction.--Nothing in this section shall be 
construed to nullify, void, cancel, or interrupt any pending request-
for-proposal let or contract issued by the General Services 
Administration for the specific purpose of relocating or leasing space 
to the United States Patent and Trademark Organization.

SEC. 413. ORGANIZATION AND MANAGEMENT.

    (a) Offices.--The United States Patent and Trademark Organization 
shall consist of--
            (1) the Office of the Director;
            (2) the United States Patent Office; and
            (3) the United States Trademark Office.
    (b) Director.--
            (1) In general.--The management of the United States Patent 
        and Trademark Organization shall be vested in a Director of the 
        United States Patent and Trademark Organization (referred to in 
        this subtitle as the ``Director'', unless the context provides 
        otherwise), who shall be a citizen of the United States and who 
        shall be appointed by the President, by and with the advice and 
        consent of the Senate. The Director shall be a person who, by 
        reason of professional background and experience in patent or 
        trademark law, is especially qualified to manage the 
        Organization.
            (2) Duties.--(A) The Director shall--
                    (i) be responsible for the Management and direction 
                of the Organization and shall perform this duty in a 
                fair, impartial, and equitable manner; and
                    (ii) strive to meet the goals set forth in the 
                performance agreement described under paragraph (4).
            (B) The Director shall advise the President, of all 
        activities of the Organization undertaken in response to 
        obligations of the United States under treaties and executive 
        agreements, or which relate to cooperative programs with those 
        authorities of foreign governments that are responsible for 
        granting patents or registering trademarks. The Director shall 
        also recommend to the President changes in law or policy which 
        may improve the ability of United States citizens to secure and 
        enforce patent and trademark rights in the United States or in 
        foreign countries.
            (C)(i) At the direction of the President, the Director may 
        represent the United States in international negotiations on 
        matters of patents or trademarks, or may designate an officer 
        or officers of the Organization to participate in such 
        negotiations.
            (ii) Nothing in this subparagraph shall be construed to 
        alter any statutory responsibility of the Secretary of State or 
        the United States Trade Representative.
            (D) The Director, in consultation with the Director of the 
        Office of Personnel Management, shall maintain a program for 
        identifying national security positions and providing for 
        appropriate security clearances.
            (E) The Director may perform such personnel, procurement, 
        and other functions, with respect to the United States Patent 
        Office and the United States Trademark Office, where a 
        centralized administration of such functions would improve the 
        efficiency of the Offices, by continuous unanimous agreement of 
        the Director, the Commissioner of Patents, and the Commissioner 
        of Trademarks. The agreement shall be in writing and shall 
        indicate the allocation of costs among the Office of the 
        Director, the United States Patent Office, and the United 
        States Trademark Office.
            (F) Except as otherwise provided in this subtitle, the 
        Director shall ensure that--
                    (i) the United States Patent Office and the United 
                States Trademark Office, respectively, shall--
                            (I) prepare all appropriation requests 
                        under section 1108 of title 31, United States 
                        Code, for each office for submission by the 
                        Director;
                            (II) adjust fees to provide sufficient 
                        revenues to cover the expenses of such office; 
                        and
                            (III) expend funds derived from such fees 
                        for only the functions of such office; and
                    (ii) each such office is not involved in the 
                management of any other office.
            (G) The Director shall submit to Congress annually such 
        information as is required under chapter 91 of title 31, United 
        States Code, including--
                    (i) the total monies received and expended by the 
                Organization;
                    (ii) the purpose for which the monies were spent;
                    (iii) the amount of any surplus revenues retained 
                by the Organization;
                    (iv) the quality and quantity of the work of the 
                Organization; and
                    (v) other information relating to the Organization.
            (3) Oath.--The Director shall, before taking office, take 
        an oath to discharge faithfully the duties of the Organization.
            (4) Compensation.--The Director shall receive compensation 
        at the rate of pay in effect for level III of the Executive 
        Schedule under section 5314 of title 5, United States Code and, 
        in addition, may receive as a bonus, an amount which would 
        raise total compensation to the equivalent of the level of the 
        rate of pay in effect for level II of the Executive Schedule 
        under section 5313 of title 5, based upon an evaluation by the 
        Director of OMB of the Director's performance as defined in an 
        annual performance agreement between the Director and the 
        Director of OMB. The annual performance agreement shall 
        incorporate measurable goals as delineated in an annual 
        performance plan agreed to by the Director and the Director of 
        OMB.
            (5) Removal.--The Director shall serve at the pleasure of 
        the President.
            (6) Designee of director.--The Director shall designate an 
        officer of the Organization who shall be vested with the 
        authority to act in the capacity of the Director in the event 
        of the absence or incapacity of the Director.
            (7) Relationship with existing authorities.--Nothing in 
        this section shall derogate from the duties or functions of the 
        Register of Copyrights.
    (c) Officers and Employees of the Organization.--
            (1) Commissioners of patents and trademarks.--The Director 
        shall appoint a Commissioner of Patents and a Commissioner of 
        Trademarks under section 3 of title 35, United States Code and 
        section 53 of the Act of July 5, 1946 (commonly referred to as 
        the Trademark Act of 1946), respectively, as amended by this 
        title.
            (2) Other officers and employees.--The Director shall--
                    (A) appoint officers, employees (including 
                attorneys), and agents of the Organization, who shall 
                be citizens of the United States, as the Director 
                considers necessary to carry out its functions;
                    (B) fix the compensation of such officers and 
                employees, except as provided in subsection (e); and
                    (C) define the authority and duties of such 
                officers and employees and delegate to them such of the 
                powers vested in the Organization as the Director may 
                determine.
            (3) Personnel limitations.--The Organization shall not be 
        subject to any administratively or statutorily imposed 
        limitation on positions or personnel, and no positions or 
        personnel of the Organization shall be taken into account for 
        purposes of applying any such limitation.
    (d) Limits on Compensation.--Except as otherwise provided by law, 
the annual rate of basic pay of an officer or employee of the 
Organization may not be fixed at a rate that exceeds, and total 
compensation payable to any such officer or employee for any year may 
not exceed, the annual rate of basic pay in effect for level II of the 
Executive Schedule under section 5313 of title 5, United States Code. 
The Director shall prescribe such regulations as may be necessary to 
carry out this subsection.
    (e) Inapplicability of Title 5, United States Code, Generally.--
Except as otherwise provided in this section, officers and employees of 
the Organization shall not be subject to the provisions of title 5, 
United States Code, relating to Federal employees.
    (f) Continued Applicability of Certain Provisions of Title 5, 
United States Code.--
            (1) In general.--The following provisions of title 5, 
        United States Code, shall apply to the Organization and its 
        officers and employees:
                    (A) Section 3110 (relating to employment of 
                relatives; restrictions).
                    (B) Subchapter II of chapter 55 (relating to 
                withholding pay).
                    (C) Subchapters II and III of chapter 73 (relating 
                to employment limitations and political activities, 
                respectively).
                    (D) Chapter 71 (relating to labor-management 
                relations), subject to paragraph (2) and subsection 
                (g).
                    (E) Section 3303 (relating to political 
                recommendations).
                    (F) Subchapter II of chapter 61 (relating to 
                flexible and compressed work schedules).
                    (G) Section 2302(b)(8) (relating to whistleblower 
                protection) and whistleblower related provisions of 
                chapter 12 (covering the role of the Office of Special 
                Counsel).
            (2) Compensation subject to collective bargaining.--
                    (A) In general.--Notwithstanding any other 
                provision of law, for purposes of applying chapter 71 
                of title 5, United States Code, pursuant to paragraph 
                (1)(D), basic pay and other forms of compensation shall 
                be considered to be among the matters as to which the 
                duty to bargain in good faith extends under such 
                chapter.
                    (B) Exceptions.--The duty to bargain in good faith 
                shall not, by reason of subparagraph (A), be considered 
                to extend to any benefit under title 5, United States 
                Code, which is afforded by paragraph (1), (2), (3), or 
                (4) of subsection (g).
                    (C) Limitations apply.--Nothing in this subsection 
                shall be considered to allow any limitation under 
                subsection (d) to be exceeded.
    (g) Provisions of Title 5, United States Code, That Continue To 
Apply, Subject to Certain Requirements.--
            (1) Retirement.--(A) The provisions of subchapter III of 
        chapter 83 and chapter 84 of title 5, United States Code, shall 
        apply to the Organization and its officers and employees, 
        subject to subparagraph (B).
            (B)(i) The amount required of the Organization under the 
        second sentence of section 8334(a)(1) of title 5, United States 
        Code, with respect to any particular individual shall, instead 
        of the amount which would otherwise apply, be equal to the 
        normal-cost percentage (determined with respect to officers and 
        employees of the Organization using dynamic assumptions, as 
        defined by section 8401(9) of such title) of the individual's 
        basic pay, minus the amount required to be withheld from such 
        pay under such section 8334(a)(1).
            (ii) The amount required of the Organization under section 
        8334(k)(1)(B) of title 5, United States Code, with respect to 
        any particular individual shall be equal to an amount computed 
        in a manner similar to that specified in clause (i), as 
        determined in accordance with clause (iii).
            (iii) Any regulations necessary to carry out this 
        subparagraph shall be prescribed by the Office of Personnel 
        Management.
            (C) The United States Patent and Trademark Organization may 
        supplement the benefits provided under the preceding provisions 
        of this paragraph.
            (2) Health benefits.--(A) The provisions of chapter 89 of 
        title 5, United States Code, shall apply to the Organization 
        and its officers and employees, subject to subparagraph (B).
            (B)(i) With respect to any individual who becomes an 
        officer or employee of the Organization pursuant to subsection 
        (i), the eligibility of such individual to participate in such 
        program as an annuitant (or of any other person to participate 
        in such program as an annuitant based on the death of such 
        individual) shall be determined disregarding the requirements 
        of section 8905(b) of title 5, United States Code. The 
        preceding sentence shall not apply if the individual ceases to 
        be an officer or employee of the Organization for any period of 
        time after becoming an officer or employee of the Organization 
        pursuant to subsection (i) and before separation.
            (ii) The Government contributions authorized by section 
        8906 of title 5, United States Code, for health benefits for 
        anyone participating in the health benefits program pursuant to 
        this subparagraph shall be made by the Organization in the same 
        manner as provided under section 8906(g)(2) of such title with 
        respect to the United States Postal Service for individuals 
        associated therewith.
            (iii) For purposes of this subparagraph, the term 
        ``annuitant'' has the meaning given such term by section 
        8901(3) of title 5, United States Code.
            (C) The Organization may supplement the benefits provided 
        under the preceding provisions of this paragraph.
            (3) Life insurance.--(A) The provisions of chapter 87 of 
        title 5, United States Code, shall apply to the Organization 
        and its officers and employees, subject to subparagraph (B).
            (B)(i) Eligibility for life insurance coverage after 
        retirement or while in receipt of compensation under subchapter 
        I of chapter 81 of title 5, United States Code, shall be 
        determined, in the case of any individual who becomes an 
        officer or employee of the Organization pursuant to subsection 
        (i), without regard to the requirements of section 8706(b) (1) 
        or (2) of such title, but subject to the condition specified in 
        the last sentence of paragraph (2)(B)(i) of this subsection.
            (ii) Government contributions under section 8708(d) of such 
        title on behalf of any such individual shall be made by the 
        Organization in the same manner as provided under paragraph (3) 
        thereof with respect to the United States Postal Service for 
individuals associated therewith.
            (C) The Organization may supplement the benefits provided 
        under the preceding provisions of this paragraph.
            (4) Employees' compensation fund.--(A) Officers and 
        employees of the Organization shall not become ineligible to 
        participate in the program under chapter 81 of title 5, United 
        States Code, relating to compensation for work injuries, by 
        reason of subsection (e).
            (B) The Organization shall remain responsible for 
        reimbursing the Employees' Compensation Fund, pursuant to 
        section 8147 of title 5, United States Code, for compensation 
        paid or payable after the effective date of this subtitle in 
        accordance with chapter 81 of title 5, United States Code, with 
        regard to any injury, disability, or death due to events 
        arising before such date, whether or not a claim has been filed 
        or is final on such date.
    (h) Labor-Management Relations.--
            (1) Labor relations and employee relations programs.--The 
        Organization shall develop hiring practices, labor relations 
        and employee relations programs with the objective of improving 
        productivity and efficiency, incorporating the following 
        principles:
                    (A) Such programs shall be consistent with the 
                merit principles in section 2301(b) of title 5, United 
                States Code.
                    (B) Such programs shall provide veterans preference 
                protections equivalent to those established by sections 
                2108, 3308 through 3318, 3320, 3502, and 3504 of title 
                5, United States Code.
                    (C)(i) The right to work shall not be subject to 
                undue restraint or coercion. The right to work shall 
                not be infringed or restricted in any way based on 
                membership in, affiliation with, or financial support 
                of a labor organization.
                    (ii) No person shall be required, as a condition of 
                employment or continuation of employment--
                            (I) to resign or refrain from voluntary 
                        membership in, voluntary affiliation with, or 
                        voluntary financial support of a labor 
                        organization;
                            (II) to become or remain a member of a 
                        labor organization;
                            (III) to pay any dues, fees, assessments, 
                        or other charges of any kind or amount to a 
                        labor organization;
                            (IV) to pay to any charity or other third 
                        party, in lieu of such payments, any amount 
                        equivalent to or a pro rata portion of dues, 
                        fees, assessments, or other charges regularly 
                        required of members of a labor organization; or
                            (V) to be recommended, approved, referred, 
                        or cleared by or through a labor organization.
                    (iii) This subparagraph shall not apply to a person 
                described in section 7103(a)(2)(v) of title 5, United 
                States Code, or a ``supervisor'', ``management 
                official'', or ``confidential employee'' as those terms 
                are defined in 7103(a) (10), (11), and (13) of such 
                title.
                    (iv) Any labor organization recognized by the 
                Organization as the exclusive representative of a unit 
                of employees of the Organization shall represent the 
                interests of all employees in that unit without 
                discrimination and without regard to labor organization 
                membership.
            (2) Adoption of existing labor agreements.--The 
        Organization shall adopt all labor agreements which are in 
        effect, as of the day before the effective date of this 
        subtitle, with respect to such Organization (as then in 
        effect).
    (i) Carryover of Personnel.--
            (1) From pto.--Effective as of the effective date of this 
        subtitle, all officers and employees of the Patent and 
        Trademark Office on the day before such effective date shall 
        become officers and employees of the Organization, without a 
        break in service.
            (2) Other personnel.--(A) Any individual who, on the day 
        before the effective date of this subtitle, is an officer or 
        employee of the Department of Commerce (other than an officer 
        or employee under paragraph (1)) shall be transferred to the 
        Organization if--
                    (i) such individual serves in a position for which 
                a major function is the performance of work reimbursed 
                by the Patent and Trademark Office, as determined by 
                the Director of OMB;
                    (ii) such individual serves in a position that 
                performed work in support of the Patent and Trademark 
                Office during at least half of the incumbent's work 
time, as determined by the Director of OMB; or
                    (iii) such transfer would be in the interest of the 
                Organization, as determined by the Director of OMB in 
                consultation with the Director.
            (B) Any transfer under this paragraph shall be effective as 
        of the same effective date as referred to in paragraph (1), and 
        shall be made without a break in service.
            (3) Accumulated leave.--The amount of sick and annual leave 
        and compensatory time accumulated under title 5, United States 
        Code, before the effective date described in paragraph (1), by 
        any individual who becomes an officer or employee of the 
        Organization under this subsection, are obligations of the 
        Organization.
            (4) Termination rights.--Any employee referred to in 
        paragraph (1) or (2) of this subsection whose employment with 
        the Organization is terminated during the 1-year period 
        beginning on the effective date of this subtitle shall be 
        entitled to rights and benefits, to be afforded by the 
        Organization, similar to those such employee would have had 
        under Federal law if termination had occurred immediately 
        before such date. An employee who would have been entitled to 
        appeal any such termination to the Merit Systems Protection 
        Board, if such termination had occurred immediately before such 
        effective date, may appeal any such termination occurring 
        within such 1-year period to the Board under such procedures as 
        it may prescribe.
            (5) Transition provisions.--(A)(i) On or after the 
        effective date of this subtitle, the President shall appoint a 
        Director of the United States Patent and Trademark Organization 
        who shall serve until the earlier of--
                    (I) the date on which a Director qualifies under 
                subsection (b); or
                    (II) the date occurring 1 year after the effective 
                date of this subtitle.
            (ii) The President shall not make more than 1 appointment 
        under this subparagraph.
            (B) The individual serving as the Assistant Commissioner of 
        Patents on the day before the effective date of this subtitle 
        shall serve as the Commissioner of Patents until the date on 
        which a Commissioner of Patents is appointed under section 3 of 
        title 35, United States Code, as amended by this title.
            (C) The individual serving as the Assistant Commissioner of 
        Trademarks on the day before the effective date of this 
        subtitle shall serve as the Commissioner of Trademarks until 
        the date on which a Commissioner of Trademarks is appointed 
        under section 53 of the Act of July 5, 1946 (commonly referred 
        to as the Trademark Act of 1946), as amended by this title.
    (j) Competitive Status.--For purposes of appointment to a position 
in the competitive service for which an officer or employee of the 
Organization is qualified, such officer or employee shall not forfeit 
any competitive status, acquired by such officer or employee before the 
effective date of this subtitle, by reason of becoming an officer or 
employee of the Organization under subsection (i).
    (k) Savings Provisions.--Compensation, benefits, and other terms 
and conditions of employment in effect immediately before the effective 
date of this subtitle, whether provided by statute or by rules and 
regulations of the former Patent and Trademark Office or the executive 
branch of the Government of the United States, shall continue to apply 
to officers and employees of the Organization, until changed in 
accordance with this section (whether by action of the Director or 
otherwise).
    (l) Removal of Quasi-Judicial Examiners.--The Organization may 
remove a patent examiner or examiner-in-chief, or a trademark examiner 
or member of a Trademark Trial and Appeal Board only for such cause as 
will promote the efficiency of the Organization.

SEC. 414. UNITED STATES PATENT OFFICE.

    (a) Establishment of the Patent Office as a Separate Administrative 
Unit.--Section 1 of title 35, United States Code, is amended to read as 
follows:
``Sec. 1. Establishment
    ``(a) Establishment.--The United States Patent Office is 
established as a separate administrative unit of the United States 
Patent and Trademark Organization, where records, books, drawings, 
specifications, and other papers and things pertaining to patents shall 
be kept and preserved, except as otherwise provided by law.
    ``(b) Reference.--For purposes of this title, the United States 
Patent Office shall also be referred to as the `Office' and the `Patent 
Office'.''.
    (b) Powers and Duties.--Section 2 of title 35, United States Code, 
is amended to read as follows:
``Sec. 2. Powers and duties
    ``The United States Patent Office, through the Director of the 
United States Patent and Trademark Organization, shall be responsible 
for--
            ``(1) granting and issuing patents;
            ``(2) conducting studies, programs, or exchanges of items 
        or services regarding domestic and international patent law, 
        the administration of the Organization, or any other function 
        vested in the Organization by law, including programs to 
        recognize, identify, assess, and forecast the technology of 
        patented inventions and their utility to industry;
            ``(3) authorizing or conducting studies and programs 
        cooperatively with foreign patent offices and international 
        organizations, in connection with the granting and issuing of 
        patents; and
            ``(4) disseminating to the public information with respect 
        to patents.''.
    (c) Organization and Management.--Section 3 of title 35, United 
States Code, is amended to read as follows:
``Sec. 3. Officers and employees
    ``(a) Commissioner.--
            ``(1) In general.--The management of the United States 
        Patent Office shall be vested in a Commissioner of Patents, who 
        shall be a citizen of the United States and who shall be 
        appointed by the Director of the United States Patent and 
Trademark Organization and shall serve at the pleasure of the Director 
of the United States Patent and Trademark Organization. The 
Commissioner shall be a person who, by reason of professional 
background and experience in patent law, is especially qualified to 
manage the Office.
            ``(2) Duties.--
                    ``(A) In general.--The Commissioner shall be 
                responsible for all aspects of the management, 
                administration, and operation of the Office, including 
                the granting and issuing of patents, and shall perform 
                these duties in a fair, impartial, and equitable 
                manner.
                    ``(B) Advising the director of the united states 
                patent and trademark organization.--The Commissioner 
                shall advise the Director of the United States Patent 
                and Trademark Organization of all activities of the 
                Office undertaken in response to obligations of the 
                United States under treaties and executive agreements, 
                or which relate to cooperative programs with those 
                authorities of foreign governments that are responsible 
                for granting patents. The Commissioner shall advise the 
                Director of the United States Patent and Trademark 
                Organization on matters of patent law and shall 
                recommend to the Director of the United States Patent 
                and Trademark Organization changes in law or policy 
                which may improve the ability of United States citizens 
                to secure and enforce patent rights in the United 
                States or in foreign countries.
                    ``(C) Regulations.--The Commissioner may establish 
                regulations, not inconsistent with law, for the conduct 
                of proceedings in the Patent Office.
                    ``(D) Consultation with the management advisory 
                board.--(i) The Commissioner shall consult with the 
                Management Advisory Board established in section 5--
                            ``(I) on a regular basis on matters 
                        relating to the operation of the Office; and
                            ``(II) before submitting budgetary 
                        proposals to the Director of the United States 
                        Patent and Trademark Organization for 
                        submission to the Office of Management and 
                        Budget or changing or proposing to change 
                        patent user fees or patent regulations.
            ``(3) Oath.--The Commissioner shall, before taking office, 
        take an oath to discharge faithfully the duties of the Office.
            ``(4) Compensation.--
                    ``(A) In general.--The Commissioner shall receive 
                compensation at the rate of pay in effect for level IV 
                of the Executive Schedule under section 5315 of title 
                5.
                    ``(B) Bonus.--In addition to compensation under 
                subparagraph (A), the Commissioner may, at the 
                discretion of the Director of the United States Patent 
                and Trademark Organization, receive as a bonus, an 
                amount which would raise total compensation to the 
                equivalent of the rate of pay in effect for level III 
                of the Executive Schedule under section 5314 of title 
                5.
    ``(b) Officers and Employees.--
            ``(1) Deputy commissioner of patents.--The Commissioner 
        shall appoint a Deputy Commissioner of Patents who shall be 
        vested with the authority to act in the capacity of the 
        Commissioner in the event of the absence or incapacity of the 
        Commissioner. In the event of a vacancy in the office of 
        Commissioner, the Deputy Commissioner shall fill the office of 
        Commissioner until a new Commissioner is appointed and takes 
        office.
            ``(2) Ombudsman.--The Commissioner shall appoint an 
        ombudsman to advise the Commissioner on the concerns of 
        independent inventors, nonprofit organizations, and small 
        business concerns.
            ``(3) Other officers and employees.--Other officers, 
        attorneys, employees, and agents shall be selected and 
        appointed by the Commissioner, and shall be vested with such 
        powers and duties as the Commissioner may determine.''.
    (d) Management Advisory Board.--Chapter 1 of part I of title 35, 
United States Code, is amended by inserting after section 4 the 
following:
``Sec. 5. Patent Office Management Advisory Board
    ``(a) Establishment of Management Advisory Board.--
            ``(1) Appointment.--The United States Patent Office shall 
        have a Management Advisory Board (hereafter in this title 
        referred to as the `Advisory Board') of 5 members, who shall be 
        appointed by the President and shall serve at the pleasure of 
        the President. Not more than 3 of the 5 members shall be 
        members of the same political party. At least 1 member shall be 
        an independent inventor, as defined in regulations issued by 
        the Commissioner.
            ``(2) Chair.--The President shall designate a Chair of the 
        Advisory Board, whose term as chair shall be for 3 years.
            ``(3) Timing of appointments.--Initial appointments to the 
        Advisory Board shall be made within 3 months after the 
        effective date of the United States Patent and Trademark 
        Organization Act of 1997. Vacancies shall be filled in the 
        manner in which the original appointment was made under this 
        subsection within 3 months after they occur.
    ``(b) Basis for Appointments.--Members of the Advisory Board shall 
be citizens of the United States who shall be chosen so as to represent 
the interests of diverse users of the United States Patent Office, and 
shall include individuals with substantial background and achievement 
in corporate finance and management.
    ``(c) Meetings.--The Advisory Board shall meet at the call of the 
Chair to consider an agenda set by the Chair.
    ``(d) Duties.--The Advisory Board shall--
            ``(1) review the policies, goals, performance, budget, and 
        user fees of the United States Patent Office, and advise the 
        Commissioner on these matters;
            ``(2) within 60 days after the end of each fiscal year--
                    ``(A) prepare an annual report on the matters 
                referred to in paragraph (1);
                    ``(B) transmit the report to the Director of the 
                United States Patent and Trademark Organization, the 
                President, and the Committees on the Judiciary of the 
                Senate and the House of Representatives; and
                    ``(C) publish the report in the Patent Office 
                Official Gazette.
    ``(f) Compensation.--Each member of the Advisory Board shall be 
compensated for each day (including travel time) during which such 
member is attending meetings or conferences of the Advisory Board or 
otherwise engaged in the business of the Advisory Board, at the rate 
which is the daily equivalent of the annual rate of basic pay in effect 
for level III of the Executive Schedule under section 5314 of title 5, 
and while away from such member's home or regular place of business 
such member may be allowed travel expenses, including per diem in lieu 
of subsistence, as authorized by section 5703 of title 5.
    ``(g) Access to Information.--Members of the Advisory Board shall 
be provided access to records and information in the United States 
Patent Office, except for personnel or other privileged information and 
information concerning patent applications required to be kept in 
confidence by section 122.
    ``(h) Applicability of Certain Ethics Laws.--Members of the 
Advisory Board shall be special Government employees within the meaning 
of section 202 of title 18.''.
    (e) Conforming Amendments.--Section 6 of title 35, United States 
Code, and the item relating to such section in the table of contents 
for chapter 1 of title 35, United States Code, are repealed.
    (f) Board of Patent Appeals and Interferences.--Section 7 of title 
35, United States Code, is amended to read as follows:
``Sec. 7. Board of Patent Appeals and Interferences
    ``(a) Establishment and Composition.--There shall be in the United 
States Patent Office a Board of Patent Appeals and Interferences. The 
Commissioner, the Deputy Commissioner, and the administrative patent 
judges shall constitute the Board. The administrative patent judges 
shall be persons of competent legal knowledge and scientific ability.
    ``(b) Duties.--
            ``(1) In general.--The Board of Patent Appeals and 
        Interferences shall, on written appeal of an applicant, a 
        patent owner, or a third-party requester in a reexamination 
        proceeding--
                    ``(A) review adverse decisions of examiners--
                            ``(i) upon applications for patents; and
                            ``(ii) in reexamination proceedings; and
                    ``(B) determine priority and patentability of 
                invention in interferences declared under section 
                135(a).
            ``(2) Hearings.--Each appeal and interference shall be 
        heard by at least 3 members of the Board, who shall be 
        designated by the Deputy Commissioner. Only the Board of Patent 
        Appeals and Interferences may grant rehearings.''.
    (g) Annual Report of Commissioner.--Section 14 of title 35, United 
States Code, is amended to read as follows:
``Sec. 14. Annual report to Congress
    ``The Commissioner shall report to the Director of the United 
States Patent and Trademark Organization such information as the 
Director is required to submit to Congress annually under section 
157(d) of this title, and under chapter 91 of title 31, including--
            ``(1) the total of the moneys received and expended by the 
        Office;
            ``(2) the purposes for which the moneys were spent;
            ``(3) the quality and quantity of the work of the Office; 
        and
            ``(4) other information relating to the Office.''.
    (h) Practice Before Patent Office.--
            (1) In general.--Section 31 of title 35, United States 
        Code, is amended to read as follows:
``Sec. 31. Regulations for agents and attorneys
    ``The Commissioner may prescribe regulations governing the 
recognition and conduct of agents, attorneys, or other persons 
representing applicants or other parties before the Office. The 
regulations may require such persons, before being recognized as 
representatives of applicants or other persons, to show that they are 
of good moral character and reputation and are possessed of the 
necessary qualifications to render to applicants or other persons 
valuable service, advice, and assistance in the presentation or 
prosecution of their applications or other business before the 
Office.''.
            (2) Designation of attorney to conduct hearing.--Section 32 
        of title 35, United States Code, is amended--
                    (A) in the first sentence, by striking ``Patent and 
                Trademark Office'' and inserting ``Patent Office''; and
                    (B) by inserting before the last sentence the 
                following: ``The Commissioner shall have the discretion 
                to designate any attorney who is an officer or employee 
                of the United States Patent Office to conduct the 
                hearing required by this section.''.
    (i) Funding.--
            (1) Adjustment of fees.--Section 41(f) of title 35, United 
        States Code, is amended to read as follows:
    ``(f) The Commissioner, after consulting with the Patent Office 
Management Advisory Board pursuant to section 3(a)(2)(C) of this title 
and after notice and opportunity for full participation by interested 
public and private parties, may, by regulation, adjust the fees 
established in this section.''.
            (2) Patent office funding.--Section 42 of title 35, United 
        States Code, is amended to read as follows:
``Sec. 42. Patent Office funding
    ``(a) Fees Payable to the Office.--All fees for services performed 
by or materials furnished by the United States Patent Office shall be 
payable to the Office.
    ``(b) Use of Moneys.--Moneys from fees shall be available to the 
United States Patent Office to carry out, to the extent provided in 
appropriations Acts, the functions of the Office. Moneys of the Office 
not otherwise used to carry out the functions of the Office shall be 
kept in cash on hand or on deposit, or invested in obligations of the 
United States or guaranteed by the United States, or in obligations or 
other instruments which are lawful investments for fiduciary, trust, or 
public funds. Fees available to the Commissioner under this title shall 
be used only for the processing of patent applications and for other 
services and materials relating to patents, including the agreed upon 
share of any centralized function, as set forth in section 413(b)(2)(E) 
of the United States Patent and Trademark Organization Act of 1997.
    ``(c) Contribution to the Office of the Director of the United 
States Patent and Trademark Organization.--The Patent Office shall 
contribute 50 percent of the annual budget of the Office of the 
Director of the United States Patent and Trademark Organization.''.

SEC. 415. UNITED STATES TRADEMARK OFFICE.

    (a) Establishment of the United States Trademark Office as a 
Separate Administrative Unit.--The Act of July 5, 1946 (commonly 
referred to as the Trademark Act of 1946) is amended--
            (1) by redesignating titles X and XI as titles XI and XII, 
        respectively;
            (2) by redesignating sections 45, 46, 47, 48, 49, 50, and 
        51 as sections 61, 71, 72, 73, 74, 75, and 76, respectively; 
        and
            (3) by inserting after title IX the following new title:

               ``TITLE X--UNITED STATES TRADEMARK OFFICE

``SEC. 51. ESTABLISHMENT.

    ``(a) Establishment.--The United States Trademark Office is 
established as a separate administrative unit of the United States 
Patent and Trademark Organization.
    ``(b) Reference.--For purposes of this chapter, the United States 
Trademark Office shall also be referred to as the `Office' and the 
`Trademark Office'.

``SEC. 52. POWERS AND DUTIES.

    ``The United States Trademark Office, under the policy direction of 
the Secretary of Commerce through the Director of the United States 
Patent and Trademark Organization, shall be responsible for--
            ``(1) the registration of trademarks;
            ``(2) conducting studies, programs, or exchanges of items 
        or services regarding domestic and international trademark law 
        or the administration of the Office;
            ``(3) authorizing or conducting studies and programs 
        cooperatively with foreign trademark offices and international 
        organizations, in connection with the registration of 
        trademarks; and
            ``(4) disseminating to the public information with respect 
        to trademarks.

``SEC. 53. OFFICERS AND EMPLOYEES.

    ``(a) Commissioner.--
            ``(1) In general.--The management of the United States 
        Trademark Office shall be vested in a Commissioner of 
        Trademarks, who shall be a citizen of the United States and who 
        shall be appointed by the Director of the United States Patent 
        and Trademark Organization and shall serve at the pleasure of 
        the Director of the United States Patent and Trademark 
        Organization. The Commissioner shall be a person who, by reason 
        of professional background and experience in trademark law, is 
        especially qualified to manage the Office.
            ``(2) Duties.--
                    ``(A) In general.--The Commissioner shall be 
                responsible for all aspects of the management, 
                administration, and operation of the Office, including 
                the registration of trademarks, and shall perform these 
                duties in a fair, impartial, and equitable manner.
                    ``(B) Advising the director of the united states 
                patent and trademark organization.--The Commissioner 
                shall advise the Director of the United States Patent 
                and Trademark Organization of all activities of the 
                Office undertaken in response to obligations of the 
                United States under treaties and executive agreements, 
                or which relate to cooperative programs with those 
                authorities of foreign governments that are responsible 
                for registering trademarks. The Commissioner shall 
                advise the Director of the United States Patent and 
                Trademark Organization on matters of trademark law and 
                shall recommend to the Director of the United States 
                Patent and Trademark Organization changes in law or 
                policy which may improve the ability of United States 
                citizens to secure and enforce trademark rights in the 
                United States or in foreign countries.
                    ``(C) Regulations.--The Commissioner may establish 
                regulations, not inconsistent with law, for the conduct 
                of proceedings in the Trademark Office.
                    ``(D) Consultation with the management advisory 
                board.--(i) The Commissioner shall consult with the 
                Trademark Office Management Advisory Board established 
                under section 54--
                            ``(I) on a regular basis on matters 
                        relating to the operation of the Office; and
                            ``(II) before submitting budgetary 
                        proposals to the Director of the United States 
                        Patent and Trademark Organization for 
                        submission to the Office of Management and 
                        Budget or changing or proposing to change 
                        trademark user fees or trademark regulations.
                    ``(E) Publications.--(i) The Commissioner may 
                print, or cause to be printed, the following:
                            ``(I) Certificates of trademark 
                        registrations, including statements and 
                        drawings, together with copies of the same.
                            ``(II) The Official Gazette of the United 
                        States Trademark Office.
                            ``(III) Annual indexes of trademarks and 
                        registrants.
                            ``(IV) Annual volumes of decisions in 
                        trademark cases.
                            ``(V) Pamphlet copies of laws and rules 
                        relating to trademarks and circulars or other 
                        publications relating to the business of the 
                        Office.
                    ``(ii) The Commissioner may exchange any of the 
                publications specified under clause (i) for 
                publications desirable for the use of the Trademark 
                Office.
            ``(3) Oath.--The Commissioner shall, before taking office, 
        take an oath to discharge faithfully the duties of the Office.
            ``(4) Compensation.--
                    ``(A) In general.--The Commissioner shall receive 
                compensation at the rate of pay in effect for level IV 
                of the Executive Schedule under section 5315 of title 
                5, United States Code.
                    ``(B) Bonus.--In addition to compensation under 
                subparagraph (A), the Commissioner may, at the 
                discretion of the Director of the United States Patent 
                and Trademark Organization, receive as a bonus, an 
                amount which would raise total compensation to the 
                equivalent of the rate of pay in effect for level III 
                of the Executive Schedule under section 5314 of title 
                5.
    ``(b) Officers and Employees.--The Commissioner shall appoint a 
Deputy Commissioner of Trademarks who shall be vested with the 
authority to act in the capacity of the Commissioner in the event of 
the absence or incapacity of the Commissioner. In the event of a 
vacancy in the office of Commissioner, the Deputy Commissioner shall 
fill the office of Commissioner until a new Commissioner is appointed 
and takes office. Other officers, attorneys, employees, and agents 
shall be selected and appointed by the Commissioner, and shall be 
vested with such powers and duties as the Commissioner may determine.

``SEC. 54. TRADEMARK OFFICE MANAGEMENT ADVISORY BOARD.

    ``(a) Establishment of Management Advisory Board.--
            ``(1) Appointment.--The United States Trademark Office 
        shall have a Management Advisory Board (referred to in this 
        title as the `Advisory Board') of 5 members, who shall be 
        appointed by the President and shall serve at the pleasure of 
        the President. Not more than 3 of the 5 members shall be 
        members of the same political party.
            ``(2) Chair.--The President shall designate a Chair of the 
        Advisory Board, whose term as chair shall be for 3 years.
            ``(3) Timing of appointments.--Initial appointments to the 
        Advisory Board shall be made within 3 months after the 
        effective date of the United States Patent and Trademark 
        Organization Act of 1997. Vacancies shall be filled in the 
        manner in which the original appointment was made under this 
        section within 3 months after they occur.
    ``(b) Basis for Appointments.--Members of the Advisory Board shall 
be citizens of the United States who shall be chosen so as to represent 
the interests of diverse users of the United States Trademark Office, 
and shall include individuals with substantial background and 
achievement in corporate finance and management.
    ``(c) Meetings.--The Advisory Board shall meet at the call of the 
Chair to consider an agenda set by the Chair.
    ``(d) Duties.--The Advisory Board shall--
            ``(1) review the policies, goals, performance, budget, and 
        user fees of the United States Trademark Office, and advise the 
        Commissioner on these matters; and
            ``(2) within 60 days after the end of each fiscal year--
                    ``(A) prepare an annual report on the matters 
                referred to under paragraph (1);
                    ``(B) transmit the report to the Director of the 
                United States Patent and Trademark Organization, the 
                President, and the Committees on the Judiciary of the 
                Senate and the House of Representatives; and
                    ``(C) publish the report in the Trademark Office 
                Official Gazette.
    ``(f) Compensation.--Each member of the Advisory Board shall be 
compensated for each day (including travel time) during which such 
member is attending meetings or conferences of the Advisory Board or 
otherwise engaged in the business of the Advisory Board, at the rate 
which is the daily equivalent of the annual rate of basic pay in effect 
for level III of the Executive Schedule under section 5314 of title 5, 
United States Code, and while away from such member's home or regular 
place of business such member may be allowed travel expenses, including 
per diem in lieu of subsistence, as authorized by section 5703 of title 
5, United States Code.
    ``(g) Access to Information.--Members of the Advisory Board shall 
be provided access to records and information in the United States 
Trademark Office, except for personnel or other privileged information.
    ``(h) Applicability of Certain Ethic Laws.--Members of the Advisory 
Board shall be special Government employees within the meaning of 
section 202 of title 18, United States Code.

``SEC. 55. ANNUAL REPORT TO CONGRESS.

    ``The Commissioner shall report to the Director of the United 
States Patent and Trademark Organization such information as the 
Director is required to report to Congress annually under chapter 91 of 
title 5, United States Code, including--
            ``(1) the moneys received and expended by the Office;
            ``(2) the purposes for which the moneys were spent;
            ``(3) the quality and quantity of the work of the Office; 
        and
            ``(4) other information relating to the Office.

``SEC. 56. TRADEMARK OFFICE FUNDING.

    ``(a) Fees Payable to the Office.--All fees for services performed 
by or materials furnished by the United States Trademark Office shall 
be payable to the Office.
    ``(b) Use of Moneys.--Moneys from fees shall be available to the 
United States Trademark Office to carry out, to the extent provided in 
appropriations Acts, the functions of the Office. Moneys of the Office 
not otherwise used to carry out the functions of the Office shall be 
kept in cash on hand or on deposit, or invested in obligations of the 
United States or guaranteed by the United States, or in obligations or 
other instruments which are lawful investments for fiduciary, trust, or 
public funds. Fees available to the Commissioner under this chapter 
shall be used only for the registration of trademarks and for other 
services and materials relating to trademarks, including the agreed 
upon share of any centralized function, as set forth in section 
413(b)(2)(E) of the United States Patent and Trademark Organization Act 
of 1997.
    ``(c) Contribution to the Office of the Director of the United 
States Patent and Trademark Organization.--The Trademark Office shall 
contribute 50 percent of the annual budget of the Office of the 
Director of the United States Patent and Trademark Organization.''.
    (b) Trademark Trial and Appeal Board.--Section 17 of the Act of 
July 5, 1946 (commonly referred to as the Trademark Act of 1946) (15 
U.S.C. 1067) is amended to read as follows:
    ``Sec. 17. (a) In every case of interference, opposition to 
registration, application to register as a lawful concurrent user, or 
application to cancel the registration of a mark, the Commissioner 
shall give notice to all parties and shall direct a Trademark Trial and 
Appeal Board to determine and decide the respective rights of 
registration.
    ``(b) The Trademark Trial and Appeal Board shall include the 
Commissioner of Trademarks, the Deputy Commissioner of Trademarks, and 
administrative trademark judges competent in trademark law who are 
appointed by the Commissioner.''.
    (c) Determination of Fees.--Section 31(a) of the Act of July 5, 
1946 (commonly referred to as the Trademark Act of 1946) (15 U.S.C. 
1067(a)) is amended by striking the second and third sentences and 
inserting the following: ``Fees established under this subsection may 
be adjusted by the Commissioner, after consulting with the Trademark 
Office Management Advisory Board in accordance with section 53(a)(2)(C) 
of this Act and after notice and opportunity for full participation by 
interested public and private parties. The Director of the United 
States Patent and Trademark Organization shall determine whether such 
fees are consistent with the policy direction of the Secretary of 
Commerce.''.

SEC. 416. SUITS BY AND AGAINST THE ORGANIZATION.

    (a) Actions Under United States Law.--Any civil action or 
proceeding to which the United States Patent and Trademark Organization 
is a party is deemed to arise under the laws of the United States. The 
Federal courts shall have exclusive jurisdiction over all civil actions 
by or against the Organization.
    (b) Representation by the Department of Justice.--The United States 
Patent and Trademark Organization shall be deemed an agency of the 
United States for purposes of section 516 of title 28, United States 
Code.
    (c) Prohibition on Attachment, Liens, or Similar Process.--No 
attachment, garnishment, lien, or similar process, intermediate or 
final, in law or equity, may be issued against property of the 
Organization.

SEC. 417. FUNDING.

    (a) In General.--The activities of the United States Patent and 
Trademark Organization and each office of the Organization shall be 
funded entirely through fees payable to the United States Patent Office 
(under section 42 of title 35, United States Code) and the United 
States Trademark Office (under section 56 of the Act of July 5, 1946 
(commonly known as the Trademark Act of 1946)), and surcharges 
appropriated by Congress, to the extent provided in appropriations Acts 
and subject to the provisions of subsection (b).
    (b) Borrowing Authority.--
            (1) In general.--The United States Patent and Trademark 
        Organization is authorized to issue from time to time for 
        purchase by the Secretary of the Treasury its debentures, 
        bonds, notes, and other evidences of indebtedness (referred to 
        in this subsection as ``obligations'') to assist in financing 
        the activities of the United States Patent Office and the 
        United States Trademark Office. Borrowing under this section 
        shall be subject to prior approval in appropriations Acts. Such 
        borrowing shall not exceed amounts approved in appropriations 
        Acts.
            (2) Borrowing authority.--Any borrowing under this 
        subsection shall be repaid only from fees paid to the Office 
        for which such obligations were issued and surcharges 
        appropriated by Congress. Such obligations shall be redeemable 
        at the option of the United States Patent and Trademark 
        Organization before maturity in the manner stipulated in such 
        obligations and shall have such maturity as is determined by 
        the United States Patent and Trademark Organization with the 
        approval of the Secretary of the Treasury. Each such obligation 
        issued to the Treasury shall bear interest at a rate not less 
        than the current yield on outstanding marketable obligations of 
        the United States of comparable maturity during the month 
        preceding the issuance of the obligation as determined by the 
        Secretary of the Treasury.
            (3) Purchase of obligations.--The Secretary of the Treasury 
        shall purchase any obligations of the United States Patent and 
        Trademark Organization issued under this subsection and for 
        such purpose the Secretary of the Treasury is authorized to use 
        as a public-debt transaction the proceeds of any securities 
        issued under chapter 31 of title 31, United States Code, and 
        the purposes for which securities may be issued under that 
        chapter are extended to include such purpose.
            (4) Treatment.--Payment under this subsection of the 
        purchase price of such obligations of the United States Patent 
        and Trademark Organization shall be treated as public debt 
        transactions of the United States.

SEC. 418. TRANSFERS.

    (a) Transfer of Functions.--Except as relates to the direction of 
patent and trademark policy, there are transferred to, and vested in, 
the United States Patent and Trademark Organization all functions, 
powers, and duties vested by law in the Secretary of Commerce or the 
Department of Commerce or in the officers or components in the 
Department of Commerce with respect to the authority to grant patents 
and register trademarks, and in the Patent and Trademark Office, as in 
effect on the day before the effective date of this subtitle, and in 
the officers and components of such office.
    (b) Transfer of Funds and Property.--The Secretary of Commerce 
shall transfer to the United States Patent and Trademark Organization, 
on the effective date of this subtitle, so much of the assets, 
liabilities, contracts, property, records, and unexpended and 
unobligated balances of appropriations, authorizations, allocations, 
and other funds employed, held, used, arising from, available to, or to 
be made available to the Department of Commerce, including funds set 
aside for accounts receivable which are related to functions, powers, 
and duties which are vested in the United States Patent and Trademark 
Office by this subtitle.

SEC. 419. USE OF ORGANIZATION NAME.

    The use of the terms ``United States Patent and Trademark 
Organization'', ``Patent and Trademark Office'', ``United States Patent 
Office'', ``Patent Office'', ``United States Trademark Office'', 
``Trademark Office'', or any combination of such terms, as the name or 
part thereof under which an individual or entity does business, is 
prohibited. A violation of this section may be enjoined by any Federal 
court at the suit of the Organization. In any such suit, the 
Organization shall be entitled to statutory damages of $1,000 for each 
day during which such violation continues or is repeated following 
notice by the Organization and, in addition, may recover actual damages 
flowing from such violations.

            CHAPTER 2--EFFECTIVE DATE; TECHNICAL AMENDMENTS

SEC. 431. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect 4 months after the date of enactment of this Act.

SEC. 432. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Amendments to Title 35.--
            (1) Table of parts.--The item relating to part I in the 
        table of parts for title 35, United States Code, is amended to 
        read as follows:

``I. United States Patent Office............................      1.''.
            (2) Heading.--The heading for part I of title 35, United 
        States Code, is amended to read as follows:

                ``PART I--UNITED STATES PATENT OFFICE''.

            (3) Table of chapters.--The table of chapters for part I of 
        title 35, United States Code, is amended by amending the item 
        relating to chapter 1 to read as follows:

``1. Establishment, Officers and Employees, Functions.......       1''.
            (4) Table of sections.--The table of sections for chapter 1 
        of title 35, United States Code, is amended to read as follows:

     ``CHAPTER 1--ESTABLISHMENT, OFFICERS AND EMPLOYEES, FUNCTIONS

``Sec.
``1. Establishment.
``2. Powers and duties.
``3. Officers and employees.
``4. Restrictions on officers and employees as to interest in patents.
``5. Patent Office Management Advisory Board.
``6. Duties of Commissioner.
``7. Board of Patent Appeals and Interferences.
``8. Library.
``9. Classification of patents.
``10. Certified copies of records.
``11. Publications.
``12. Exchange of copies of patents with foreign countries.
``13. Copies of patents for public libraries.
``14. Annual report to Congress.''.
            (5) Commissioner of patents and trademarks.--(A) Section 
        41(h)(1) of title 35, United States Code, is amended by 
        striking ``Commissioner of Patents and Trademarks'' and 
        inserting ``Commissioner''.
            (B) Section 155 of title 35, United States Code, is amended 
        by striking ``Commissioner of Patents and Trademarks'' and 
        inserting ``Commissioner''.
            (C) Section 155A(c) of title 35, United States Code, is 
        amended by striking ``Commissioner of Patents'' and inserting 
        ``Commissioner''.
            (6) Patent and trademark office.--The provisions of title 
        35, United States Code, are amended by striking ``Patent and 
        Trademark Office'' each place it appears and inserting ``Patent 
        Office''.
            (7) Secretary of commerce.--Section 157(d) of title 35, 
        United States Code, is amended by striking ``Secretary of 
        Commerce'' and inserting ``Director of the United States Patent 
        and Trademark Organization''.
    (b) Amendments to the Trademark Act of 1946.--
            (1) References.--All amendments in this subsection refer to 
        the Act of July 5, 1946 (commonly referred to as the Trademark 
        Act of 1946).
            (2) Amendments relating to commissioner.--Section 61 (as 
        redesignated by section 415(a)(2) of this title) is amended by 
        striking the undesignated paragraph relating to the definition 
        of the term ``Commissioner'' and inserting the following:
    ``The term `Commissioner' means the Commissioner of Trademarks.''.
            (3) Amendments relating to patent and trademark office.--
        (A) Section 1(a)(1) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (B) Section 1(a)(2) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (C) Section 1(b)(1) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (D) Section 1(b)(2) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (E) Section 1(d)(1) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (F) Section 1(e) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (G) Section 2(d) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (H) Section 7(a) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (I) Section 7(d) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (J) Section 7(e) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (K) Section 7(f) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (L) Section 7(g) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (M) Section 8(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (N) Section 8(b) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (O) Section 10 is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (P) Section 12(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (Q) Section 13(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (R) Section 13(b)(1) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (S) Section 15(2) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (T) Section 17 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (U) Section 21(a)(2) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (V) Section 21(a)(3) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (W) Section 21(a)(4) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (X) Section 21(b)(3) is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (Y) Section 21(b)(4) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (Z) Section 24 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (AA) Section 29 is amended by striking ``Patent and 
        Trademark Office'' each place such term appears and inserting 
        ``Trademark Office''.
            (BB) Section 30 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (CC) Section 31(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (DD) Section 34(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (EE) Section 34(d)(1)(B)(i) is amended by striking ``Patent 
        and Trademark Office'' and inserting ``Trademark Office''.
            (FF) Section 35(a) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (GG) Section 36 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (HH) Section 37 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (II) Section 38 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (JJ) Section 39(b) is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (KK) Section 41 is amended by striking ``Patent and 
        Trademark Office'' and inserting ``Trademark Office''.
            (LL) Section 61 (as redesignated under section 415(a)(2) of 
        this title) is amended in the undesignated paragraph relating 
        to the definition of ``registered mark''--
                    (i) by striking ``Patent and Trade Mark Office'' 
                and inserting ``Trademark Office; and
                    (ii) by striking ``Patent and Trade Office'' and 
                inserting ``Trademark Office''.
            (MM) Section 72(a) (as redesignated under section 415(a)(2) 
        of this title) is amended by striking ``Patent and Trademark 
        Office'' and inserting ``Trademark Office''.
            (NN) Section 75 (as redesignated under section 415(a)(2) of 
        this title) is amended by striking ``Patent and Trademark 
        Office'' and inserting ``Trademark Office''.
    (c) Amendments to Title 5.--Title 5, United States Code, is 
amended--
            (1) in section 5102(c)(23)--
                    (A) by striking ``examiners-in-chief'' in each 
                place it appears and inserting ``administrative patent 
                judges''; and
                    (B) by striking ``Office, Department of Commerce'' 
                and inserting ``Organization''; and
            (2) in section 5316--
                    (A) by striking ``Commissioner of Patents, 
                Department of Commerce.''; and
                    (B) by striking:
            ``Deputy Commissioner of Patents and Trademarks.
            ``Assistant Commissioner for Patents.
            ``Assistant Commissioner for Trademarks.''.
    (d) Amendment to Title 31.--Section 9101(3) of title 31, United 
States Code, is amended by adding at the end the following:
                    ``(O) the United States Patent and Trademark 
                Organization.''.
    (e) Amendments to Inspector General Act of 1978.--Section 11 of the 
Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in paragraph (1) by striking ``or the Commissioner of 
        Social Security, Social Security Administration;'' and 
        inserting ``the Commissioner of Social Security, Social 
        Security Administration; or the Director of the United States 
        Patent and Trademark Organization, United States Patent and 
        Trademark Organization;''; and
            (2) in paragraph (2) by striking ``or the Veterans' 
        Administration, or the Social Security Administration;'' and 
        inserting ``the Veterans' Administration, the Social Security 
        Administration, or the United States Patent and Trademark 
        Organization;''.

          Subtitle B--Early Publication of Patent Applications

SEC. 441. SHORT TITLE.

    This subtitle may be cited as the ``Patent Application Publication 
Act of 1997''.

SEC. 442. EARLY PUBLICATION.

    Section 122 of title 35, United States Code, is amended to read as 
follows:
``Sec. 122. Confidential status of applications; publication of patent 
              applications
    ``(a) Confidentiality.--Except as provided in subsection (b), 
applications for patents shall be kept in confidence by the Patent 
Office and no information concerning the same given without authority 
of the applicant or owner unless necessary to carry out the provisions 
of an Act of Congress or in such special circumstances as may be 
determined by the Commissioner.
    ``(b) Publication.--
            ``(1) In general.--(A) Subject to paragraph (2), each 
        application for patent, except applications for design patents 
        filed under chapter 16 of this title and provisional 
        applications filed under section 111(b) of this title, shall be 
        published, in accordance with procedures determined by the 
        Commissioner, as soon as possible after the expiration of a 
        period of 18 months from the earliest filing date for which a 
        benefit is sought under this title. At the request of the 
        applicant, an application may be published earlier than the end 
        of such 18-month period.
            ``(B) No information concerning published patent 
        applications shall be made available to the public except as 
        the Commissioner determines.
            ``(C) Notwithstanding any other provision of law, a 
        determination by the Commissioner to release or not to release 
        information concerning a published patent application shall be 
        final and nonreviewable.
            ``(2) Exceptions.--(A) An application that is no longer 
        pending shall not be published.
            ``(B) An application that is subject to a secrecy order 
        pursuant to section 181 of this title shall not be published.
            ``(C)(i) Where an applicant makes a request upon filing, 
        certifying that the invention disclosed in the application has 
        not and will not be the subject of an application filed in a 
        foreign country, the application shall not be published as 
        provided in paragraph (1).
            ``(ii) An applicant may rescind a request made under clause 
        (i) at any time. An applicant has a duty to notify the Director 
        within 1 month of filing an application in a foreign country.
            ``(iii) Where an applicant rescinds a request made under 
        clause (i) or notifies the Director that an application was 
        filed in a foreign country, the application shall be published 
        in accordance with the provisions of paragraph (1).
    ``(c) Pre-Issuance Opposition.--The provisions of this section 
shall not operate to create any new opportunity for pre-issuance 
opposition. The Commissioner may establish appropriate procedures to 
ensure that this section does not create any new opportunity for pre-
issuance opposition that did not exist prior to the adoption of this 
section.
    ``(d) Study.--
            ``(1) In general.--The General Accounting Office shall 
        conduct a 3-year study of the applicants who file only in the 
        United States after the effective date of this title.
            ``(2) Contents.--The study conducted under paragraph (1) 
        shall--
                    ``(A) consider the number of such applicants in 
                relation to the number of applicants who file in the 
                United States and outside the United States;
                    ``(B) examine how many domestic-only filers request 
                at the time of filing not to be published;
                    ``(C) examine how many such filers rescind that 
                request or later choose to file abroad; and
                    ``(D) examine the manner of entity seeking an 
                application and any correlation that may exist between 
                such manner and publication of patent applications.''.

SEC. 443. TIME FOR CLAIMING BENEFIT OF EARLIER FILING DATE.

    (a) In a Foreign Country.--Section 119(b) of title 35, United 
States Code, is amended to read as follows:
    ``(b)(1) No application for patent shall be entitled to this right 
of priority unless a claim, identifying the foreign application by 
specifying its application number, country, and the day, month, and 
year of its filing, is filed in the Patent Office at such time during 
the pendency of the application as required by the Commissioner.
    ``(2) The Commissioner may consider the failure of the applicant to 
file a timely claim for priority as a waiver of any such claim. The 
Commissioner may establish procedures, including the payment of a 
surcharge, to accept an unintentionally delayed claim under this 
section.
    ``(3) The Commissioner may require a certified copy of the original 
foreign application, specification, and drawings upon which it is 
based, a translation if not in the English language, and such other 
information as the Commissioner considers necessary. Any such 
certification shall be made by the foreign intellectual property 
authority in which the foreign application was filed and show the date 
of the application and of the filing of the specification and other 
papers.''.
    (b) In the United States.--Section 120 of title 35, United States 
Code, is amended by adding at the end the following: ``The Commissioner 
may determine the time period during the pendency of the application 
within which an amendment containing the specific reference to the 
earlier filed application is submitted. The Commissioner may consider 
the failure to submit such an amendment within that time period as a 
waiver of any benefit under this section. The Commissioner may 
establish procedures, including the payment of a surcharge, to accept 
unavoidably late submissions of amendments under this section.''.

SEC. 444. PROVISIONAL RIGHTS.

    Section 154 of title 35, United States Code, is amended--
            (1) in the section caption by inserting ``; provisional 
        rights'' after ``patent''; and
            (2) by adding at the end the following new subsection:
    ``(d) Provisional Rights.--
            ``(1) In general.--In addition to other rights provided by 
        this section, a patent shall include the right to obtain a 
        reasonable royalty from any person who, during the period 
        beginning on the date of publication of the application for 
        such patent pursuant to section 122(b) of this title, or in the 
        case of an international application filed under the treaty 
        defined in section 351(a) of this title designating the United 
        States under Article 21(2)(a) of such treaty, the date of 
        publication of the application, and ending on the date the 
        patent is issued--
                    ``(A)(i) makes, uses, offers for sale, or sells in 
                the United States the invention as claimed in the 
                published patent application or imports such an 
                invention into the United States; or
                    ``(ii) if the invention as claimed in the published 
                patent application is a process, uses, offers for sale, 
                or sells in the United States or imports into the 
                United States products made by that process as claimed 
                in the published patent application; and
                    ``(B) had actual notice of the published patent 
                application, and where the right arising under this 
                paragraph is based upon an international application 
                designating the United States that is published in a 
                language other than English, a translation of the 
                international application into the English language.
            ``(2) Right based on substantially identical inventions.--
        The right under paragraph (1) to obtain a reasonable royalty 
        shall not be available under this subsection unless the 
        invention as claimed in the patent is substantially identical 
        to the invention as claimed in the published patent 
        application.
            ``(3) Time limitation on obtaining a reasonable royalty.--
        The right under paragraph (1) to obtain a reasonable royalty 
        shall be available only in an action brought not later than 6 
        years after the patent is issued. The right under paragraph (1) 
        to obtain a reasonable royalty shall not be affected by the 
        duration of the period described in paragraph (1).
            ``(4) Requirements for international applications.--
                    ``(A) Effective date.--The right under paragraph 
                (1) to obtain a reasonable royalty based upon the 
publication under the treaty of an international application 
designating the United States shall commence from the date that the 
Patent Office receives a copy of the publication under the treaty 
defined in section 351(a) of this title of the international 
application, or, if the publication under the treaty of the 
international application is in a language other than English, from the 
date that the Patent Office receives a translation of the international 
application in the English language.
                    ``(B) Copies.--The Commissioner may require the 
                applicant to provide a copy of the international 
                application and a translation thereof.
            ``(5) Issuance of patents on individual claims.--Where the 
        Director in a notification to the applicant under section 132 
        of this title indicates that one or more claims of a published 
        application are allowable, the applicant may request the 
        issuance of a patent incorporating those claims. The applicant 
        may continue prosecution of the remaining claims as provided in 
        chapter 12 of this title. Any subsequently allowed claims may 
        be incorporated into the patent. The Director may establish 
        appropriate fees to cover the costs of incorporating any 
        additional claims into the patent.''.

SEC. 445. PRIOR ART EFFECT OF PUBLISHED APPLICATIONS.

    Section 102(e) of title 35, United States Code, is amended to read 
as follows:
    ``(e) the invention was described in--
            ``(1)(A) an application for patent, published pursuant to 
        section 122(b) of this title, by another filed in the United 
        States before the invention by the applicant for patent, except 
        that an international application filed under the treaty 
        defined in section 351(a) of this title shall have the effect 
        under this subsection of a national application published under 
        section 122(b) of this title only if the international 
        application designating the United States was published under 
        Article 21(2)(a) of such treaty in the English language, or
            ``(B) a patent granted on an application for patent by 
        another filed in the United States before the invention by the 
        applicant for patent, or''.

SEC. 446. COST RECOVERY FOR PUBLICATION.

    The Commissioner of Patents shall recover the cost of early 
publication required by the amendment made by section 442 by adjusting 
the filing, issue, and maintenance fees under title 35, United States 
Code, by charging a separate publication fee, or by any combination of 
these methods.

SEC. 447. CONFORMING CHANGES.

    The following provisions of title 35, United States Code, are 
amended:
            (1) Section 11 is amended in paragraph 1 of subsection (a) 
        by inserting ``and published applications for patents'' after 
        ``Patents''.
            (2) Section 12 is amended--
                    (A) in the section caption by inserting ``and 
                applications'' after ``patents''; and
                    (B) by inserting ``and published applications for 
                patents'' after ``patents''.
            (3) Section 13 is amended--
                    (A) in the section caption by inserting ``and 
                applications'' after ``patents''; and
                    (B) by inserting ``and published applications for 
                patents'' after ``patents''.
            (4) The items relating to sections 12 and 13 in the table 
        of sections for chapter 1 are each amended by inserting ``and 
        applications'' after ``patents''.
            (5) The item relating to section 122 in the table of 
        sections for chapter 11 is amended by inserting ``; publication 
        of patent applications'' after ``applications''.
            (6) The item relating to section 154 in the table of 
        sections for chapter 14 is amended by inserting ``; provisional 
        rights'' after ``patent''.
            (7) Section 181 is amended--
                    (A) in the first undesignated paragraph--
                            (i) by inserting ``by the publication of an 
                        application or'' after ``disclosure''; and
                            (ii) ``the publication of the application 
                        or'' after ``withhold'';
                    (B) in the second undesignated paragraph by 
                inserting ``by the publication of an application or'' 
                after ``disclosure of an invention'';
                    (C) in the third undesignated paragraph--
                            (i) by inserting ``by the publication of 
                        the application or'' after ``disclosure of the 
                        invention''; and
                            (ii) ``the publication of the application 
                        or'' after ``withhold''; and
                    (D) in the fourth undesignated paragraph by 
                inserting ``the publication of an application or'' 
                after ``and'' in the first sentence.
            (8) Section 252 is amended in the first undesignated 
        paragraph by inserting ``substantially'' before ``identical'' 
        each place it appears.
            (9) Section 284 is amended by adding at the end of the 
        second undesignated paragraph the following: ``Increased 
        damages under this paragraph shall not apply to provisional 
        rights under section 154(d) of this title.''.
            (10) Section 374 is amended to read as follows:
``Sec. 374. Publication of international application: Effect
    ``The publication under the treaty, defined in section 351(a) of 
this title, of an international application designating the United 
States shall confer the same rights and shall have the same effect 
under this title as an application for patent published under section 
122(b), except as provided in sections 102(e) and 154(d) of this 
title.''.

SEC. 448. LAST DAY OF PENDENCY OF PROVISIONAL APPLICATION.

    Section 119(e) of title 35, United States Code, is amended by 
adding at the end the following:
    ``(3) If the day that is 12 months after the filing date of a 
provisional application falls on a Saturday, Sunday, or legal holiday 
as defined in rule 6(a) of the Federal Rules of Civil Procedure, the 
period of pendency of the provisional application shall be extended to 
the next succeeding business day.''.

SEC. 449. EFFECTIVE DATE.

    (a) Sections 442 Through 447.--Sections 442 through 447, and the 
amendments made by such sections, shall take effect on the date that is 
1 year after the date of enactment of this Act and shall apply to all 
applications filed under section 111 of title 35, United States Code, 
on or after that date, and all applications complying with section 371 
of title 35, United States Code, that resulted from international 
applications filed on or after that date. The amendment made by section 
444 shall also apply to international applications designating the 
United States that are filed on or after the date that is 1 year after 
the date of enactment of this Act.
    (b) Section 448.--The amendments made by section 448 shall take 
effect on the date of enactment of this Act and, except for a design 
patent application filed under chapter 16 of title 35, United States 
Code, shall apply to any application filed on or after June 8, 1995.

                  Subtitle C--Patent Term Restoration

SEC. 451. PATENT TERM RESTORATION AUTHORITY.

    Section 154(b) of title 35, United States Code, is amended to read 
as follows:
    ``(b) Adjustment of Patent Term.--
            ``(1) Basis for patent term restoration.--
                    ``(A) Delay.--Subject to the limitations under 
                paragraph (2), if the issue of an original patent is 
                delayed due to--
                            ``(i) a proceeding under section 135(a) of 
                        this title;
                            ``(ii) the imposition of an order pursuant 
                        to section 181 of this title;
                            ``(iii) appellate review by the Board of 
                        Patent Appeals and Interferences or by a 
                        Federal court where the patent was issued 
                        pursuant to a decision in the review reversing 
                        an adverse determination of patentability; or
                            ``(iv) an unusual administrative delay by 
                        the Patent Office in issuing the patent,
                the term of the patent shall be adjusted for the period 
                of delay.
                    ``(B) Administrative delay.--For purposes of 
                subparagraph (A)(iv), an unusual administrative delay 
                by the Patent Office is the failure to--
                            ``(i) make a notification of the rejection 
                        of any claim for a patent or any objection or 
                        argument under section 132 of this title or 
                        give or mail a written notice of allowance 
                        under section 151 of this title not later than 
                        14 months after the date on which the 
                        application was filed;
                            ``(ii) respond to a reply under section 132 
                        of this title or to an appeal taken under 
                        section 134 of this title not later than 4 
                        months after the date on which the reply was 
                        filed or the appeal was taken;
                            ``(iii) act on an application not later 
                        than 4 months after the date of a decision by 
                        the Board of Patent Appeals and Interferences 
                        under section 134 or 135 of this title or a 
                        decision by a Federal court under section 141, 
                        145, or 146 of this title where allowable 
                        claims remain in an application;
                            ``(iv) issue a patent not later than 4 
                        months after the date on which the issue fee 
                        was paid under section 151 of this title and 
                        all outstanding requirements were satisfied; or
                            ``(v) issue a patent within 3 years after 
                        the actual filing date of the application in 
                        the United States, if the applicant--
                                    ``(I) has not obtained further 
                                limited examination of the application 
                                under section 132(b) of this title;
                                    ``(II) has not benefited from an 
                                adjustment of patent term under clause 
                                (i), (ii), or (iii) or paragraph 
                                (1)(A);
                                    ``(III) has not sought or obtained 
                                appellate review by the Board of Patent 
                                Appeals and Interferences or by a 
                                Federal court other than in a case in 
                                which the patent was issued pursuant to 
                                a decision in the review reversing an 
                                adverse determination of patentability; 
                                and
                                    ``(IV) has not requested any delay 
                                in the processing of the application by 
                                the Patent Office.
            ``(2) Limitations.--
                    ``(A) In general.--The total duration of any 
                adjustments granted pursuant to either subclause (iii) 
                or (iv) of paragraph (1)(A) or both such subclauses 
                shall not exceed 10 years. To the extent that periods 
                of delay attributable to grounds specified in paragraph 
                (1) overlap, the period of any adjustment granted under 
                this subsection shall not exceed the actual number of 
                days the issuance of the patent was delayed.
                    ``(B) Reduction of adjustment.--The period of 
                adjustment of the term of a patent under this 
                subsection shall be reduced by a period equal to the 
                time in which the applicant failed to engage in 
                reasonable efforts to conclude prosecution of the 
                application. The Commissioner shall prescribe 
                regulations establishing the circumstances that 
                constitute a failure of an applicant to engage in 
                reasonable efforts to conclude processing or 
                examination of an application.
                    ``(C) Disclaimed term.--No patent the term of which 
                has been disclaimed beyond a specified date may be 
                adjusted under this section beyond the expiration date 
                specified in the disclaimer.
                    ``(D) Applicant delay.--The period of adjustment of 
                the term of a patent under clause (iv) of paragraph 
                (1)(A), which is based on the failure of the Patent 
                Office to meet the criteria set forth in clause (v) of 
                paragraph (1)(B), shall be reduced by the cumulative 
                total of any periods of time that an applicant takes to 
                respond in excess of 3 months after the date on which 
                the Patent Office makes any rejection, objection, 
                argument, or other request, except that the 
                Commissioner, upon petition from the applicant in the 
                case of a nonprofit research laboratory or nonprofit 
                entity such as a university, research center, or 
                hospital, shall reinstate all or part of such time upon 
                a showing of good cause by the applicant, but in no 
                case more than 3 additional months for each such 
                response beyond 3 months.
            ``(3) Procedures.--The Commissioner shall prescribe 
        regulations establishing procedures for the notification of 
        patent term extensions under this subsection and procedures for 
        contesting patent term extensions under this subsection.
            ``(4) Notice to commissioner.--In a case in which a patent 
        term is adjusted under this subsection, the Commissioner shall 
        determine the period of any patent term adjustment available 
        under this section and shall include a copy of that 
        determination with the final notice. The Commissioner shall 
        prescribe regulations establishing procedures for the 
        application for, and notification of, patent term adjustments 
        granted by the Commissioner under this subsection.
            ``(5) Judicial review.--Any applicant dissatisfied with a 
        determination of the Commissioner under paragraph (3) may have 
        remedy by civil action in the United States Court of Federal 
        Claims if commenced within 180 days after the mailing of the 
        notice of allowance as the Commissioner appoints. The 
        initiation of a civil action under this section shall not delay 
        the issuance of a patent.''.

SEC. 452. FURTHER EXAMINATION OF PATENT APPLICATIONS.

    Section 132 of title 35, United States Code, is amended--
            (1) in the first sentence by striking ``Whenever'' and 
        inserting ``(a) Whenever''; and
            (2) by adding at the end the following:
    ``(b) The Commissioner shall prescribe regulations to provide for 
the further limited reexamination of applications for patent at the 
request of the applicant. The Commissioner may establish appropriate 
fees for such further limited examination and shall be authorized to 
provide a 50 percent reduction on such fees for small entities that 
qualify for reduced fees under section 41(h)(1) of this title.''.

SEC. 453. TECHNICAL CLARIFICATION.

    Section 156(a) of title 35, United States Code, is amended--
            (1) in the matter preceding paragraph (1) by inserting ``, 
        which shall include any patent term adjustment granted under 
        section 154(b),'' after ``the original expiration date of the 
        patent''.

SEC. 454. EFFECTIVE DATE.

    The amendments made by section 451 shall take effect on the date of 
enactment of this Act and, except for a design patent application filed 
under chapter 16 of title 35, United States Code, shall apply to any 
application filed on or after June 8, 1995.

               Subtitle D--Prior Domestic Commercial Use

SEC. 461. SHORT TITLE.

    This subtitle may be cited as the ``Prior Domestic Commercial Use 
Act of 1997''.

SEC. 462. DEFENSE TO PATENT INFRINGEMENT BASED ON PRIOR DOMESTIC 
              COMMERCIAL USE.

    (a) Defense.--Chapter 28 of title 35, United States Code, is 
amended by adding at the end the following new section:
``Sec. 273. Prior domestic commercial use; defense to infringement
    ``(a) Definitions.--For purposes of this section--
            ``(1) the terms `commercially used', `commercially use', 
        and `commercial use'--
                    ``(A) mean the use in the United States in 
                commerce, use by the United States, or the use in the 
                design, testing, or production in the United States of 
                a product or service which is used in commerce or used 
                by the United States, whether or not the subject matter 
                at issue is accessible to or otherwise known to the 
                public; and
                    ``(B) includes in the case of activities performed 
                by a nonprofit research laboratory, or nonprofit entity 
                such as a university, research center, or hospital, a 
                use for which the public is the intended beneficiary 
                shall be considered to be a use described in 
                subparagraph (A) except that the use--
                            ``(i) may be asserted as a defense under 
                        this section only for continued use by and in 
                        the laboratory or nonprofit entity; and
                            ``(ii) may not be asserted as a defense 
                        with respect to any subsequent 
                        commercialization or use outside such 
                        laboratory or nonprofit entity;
            ``(2) the terms `used in commerce', and `use in commerce' 
        mean that there has been an actual arms-length sale or other 
        commercial transfer, or use by the United States, of the 
        subject matter at issue or that there has been an actual arms-
        length sale or other commercial transfer, or use by the United 
        States, of a product or service resulting from the use of the 
        subject matter at issue; and
            ``(3) the `effective filing date' of a patent is the 
        earlier of the actual filing date of the application for the 
        patent or the filing date of any earlier United States, 
        foreign, or international application to which the subject 
        matter at issue is entitled under section 119, 120, or 365 of 
        this title.
    ``(b) Defense to Infringement.--
            ``(1) In general.--A person shall not be liable as an 
        infringer under section 271 of this title, nor shall the United 
        States be held liable under section 1498(a) of title 28, with 
        respect to any subject matter that would otherwise infringe one 
        or more claims in the patent being asserted against such 
        person, if such person had, acting in good faith, commercially 
        used the subject matter before the effective filing date of 
        such patent.
            ``(2) Exhaustion of right.--The sale or other disposition 
        of the subject matter of a patent by a person entitled to 
        assert a defense under this section with respect to that 
        subject matter shall exhaust the patent owner's rights under 
        the patent to the extent such rights would have been exhausted 
        had such sale or other disposition been made by the patent 
        owner.
    ``(c) Limitations and Qualifications of Defense.--The defense to 
infringement under this section is subject to the following:
            ``(1) Derivation.--A person may not assert the defense 
        under this section if the subject matter on which the defense 
        is based was derived from the patentee or persons in privity 
        with the patentee.
            ``(2) Not a general license.--The defense asserted by a 
        person under this section is not a general license under all 
        claims of the patent at issue, but extends only to the subject 
        matter claimed in the patent with respect to which the person 
        can assert a defense under this chapter, except that the 
        defense shall also extend to variations in the quantity or 
        volume of use of the claimed subject matter, and to 
        improvements in the claimed subject matter that do not infringe 
        additional specifically claimed subject matter of the patent.
            ``(3) Effective and serious preparation.--With respect to 
        subject matter that cannot be commercialized without a 
        significant investment of time, money, and effort, a person 
        shall be deemed to have commercially used the subject matter 
        if--
                    ``(A) before the effective filing date of the 
                patent, the person reduced the subject matter to 
                practice in the United States, completed a significant 
                portion of the total investment necessary to 
                commercially use the subject matter, and made an arms-
                length commercial transaction in the United States in 
                connection with the preparation to use the subject 
                matter; and
                    ``(B) thereafter the person diligently completed 
                the remainder of the activities and investments 
                necessary to commercially use the subject matter, and 
                promptly began commercial use of the subject matter, 
even if such activities were conducted after the effective filing date 
of the patent.
            ``(4) Burden of proof.--A person asserting the defense 
        under this section shall have the burden of establishing the 
        defense.
            ``(5) Abandonment of use.--A person who has abandoned 
        commercial use of subject matter may not rely on activities 
        performed before the date of such abandonment in establishing a 
        defense under subsection (b) with respect to actions taken 
        after the date of such abandonment.
            ``(6) Personal defense.--The defense under this section may 
        only be asserted by the person who performed the acts necessary 
        to establish the defense and, except for any transfer to the 
        patent owner, the right to assert the defense shall not be 
        licensed or assigned or transferred to another person except in 
        connection with the good faith assignment or transfer of the 
        entire enterprise or line of business to which the defense 
        relates.
            ``(7) One-year limitation.--A person may not assert a 
        defense under this section unless the subject matter on which 
        the defense is based had been commercially used or actually 
        reduced to practice more than one year prior to the effective 
        filing date of the patent by the person asserting the defense 
        or someone in privity with that person.
    ``(d) Unsuccessful Assertion of Defense.--If the defense under this 
section is pleaded by a person who is found to infringe the patent and 
who subsequently fails to demonstrate a reasonable basis for asserting 
the defense, the court shall find the case exceptional for the purpose 
of awarding attorney's fees under section 285 of this title.
    ``(e) Invalidity.--A patent shall not be deemed to be invalid under 
section 102 or 103 of this title solely because a defense is 
established under this section.''.
    (b) Conforming Amendment.--The table of sections at the beginning 
of chapter 28 of title 35, United States Code, is amended by adding at 
the end the following new item:

``Sec. 273. Prior domestic commercial use; defense to infringement.''.

SEC. 463. EFFECTIVE DATE AND APPLICABILITY.

    This subtitle and the amendments made by this subtitle shall take 
effect on the date of enactment of this Act, but shall not apply to any 
action for infringement that is pending on such date of enactment or 
with respect to any subject matter for which an adjudication of 
infringement, including a consent judgment, has been made before such 
date of enactment.

                Subtitle E--Patent Reexamination Reform

SEC. 471. SHORT TITLE.

    This subtitle may be cited as the ``Patent Reexamination Reform Act 
of 1997''.

SEC. 472. DEFINITIONS.

    Section 100 of title 35, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) The term `third-party requester' means a person requesting 
reexamination under section 302 of this title who is not the patent 
owner.''.

SEC. 473. REEXAMINATION PROCEDURES.

    (a) Request for Reexamination.--Section 302 of title 35, United 
States Code, is amended to read as follows:
``Sec. 302. Request for reexamination
    ``(a) In General.--Any person at any time may file a request for 
reexamination by the Office of a patent on the basis of any prior art 
cited under the provisions of section 301 of this title.
    ``(b) Requirements.--The request shall--
            ``(1) be in writing, include the identity of the real party 
        in interest, and be accompanied by payment of a reexamination 
        fee established by the Commissioner of Patents pursuant to the 
        provisions of section 41 of this title; and
            ``(2) set forth the pertinency and manner of applying cited 
        prior art to every claim for which reexamination is requested.
    ``(c) Copy.--Unless the requesting person is the owner of the 
patent, the Commissioner promptly shall send a copy of the request to 
the owner of record of the patent.''.
    (b) Determination of Issue by Commissioner.--Section 303 of title 
35, United States Code, is amended to read as follows:
``Sec. 303. Determination of issue by Commissioner
    ``(a) Reexamination.--Not later than 3 months after the filing of a 
request for reexamination under the provisions of section 302 of this 
title, the Commissioner shall determine whether a substantial new 
question of patentability affecting any claim of the patent concerned 
is raised by the request, with or without consideration of other 
patents or printed publications. On the Commissioner's initiative, and 
any time, the Commissioner may determine whether a substantial new 
question of patentability is raised by patents and publications.
    ``(b) Record.--A record of the Commissioner's determination under 
subsection (a) shall be placed in the official file of the patent, and 
a copy shall be promptly given or mailed to the owner of record of the 
patent and to the third-party requester, if any.
    ``(c) Final Decision.--A determination by the Commissioner pursuant 
to subsection (a) shall be final and nonappealable. Upon a 
determination that no substantial new question of patentability has 
been raised, the Commissioner may refund a portion of the reexamination 
fee required under section 302 of this title.''.
    (c) Reexamination Order by Commissioner.--Section 304 of title 35, 
United States Code, is amended to read as follows:
``Sec. 474. Reexamination order by Commissioner
    ``If, in a determination made under the provisions of section 
303(a) of this title, the Commissioner finds that a substantial new 
question of patentability affecting a claim of a patent is raised, the 
determination shall include an order for reexamination of the patent 
for resolution of the question. The order may be accompanied by the 
initial action of the Patent Office on the merits of the reexamination 
conducted in accordance with section 305 of this title.''.
    (d) Conduct of Reexamination Proceedings.--Section 305 of title 35, 
United States Code, is amended to read as follows:
``Sec. 305. Conduct of reexamination proceedings
    ``(a) In General.--Subject to subsection (b), reexamination shall 
be conducted according to the procedures established for initial 
examination under the provisions of sections 132 and 133 of this title. 
In any reexamination proceeding under this chapter, the patent owner 
shall be permitted to propose any amendment to the patent and a new 
claim or claims, except that no proposed amended or new claim enlarging 
the scope of the claims of the patent shall be permitted.
    ``(b) Response.--(1) This subsection shall apply to any 
reexamination proceeding in which the order for reexamination is based 
upon a request by a third-party requester.
    ``(2) With the exception of the reexamination request, any document 
filed by either the patent owner or the third-party requester shall be 
served on the other party.
    ``(3) If the patent owner files a response to any Patent Office 
action on the merits, the third-party requester shall have 1 
opportunity to file written comments within a reasonable period not 
less than 1 month after the date of service of the patent owner's 
response. Written comments provided under this paragraph shall be 
limited to issues covered by the Patent Office action or the patent 
owner's response.
    ``(c) Special Dispatch.--Unless otherwise provided by the 
Commissioner for good cause, all reexamination proceedings under this 
section, including any appeal to the Board of Patent Appeals and 
Interferences, shall be conducted with special dispatch within the 
Office.''.
    (e) Appeal.--Section 306 of title 35, United States Code, is 
amended to read as follows:
``Sec. 306. Appeal
    ``(a) Patent Owner.--The patent owner involved in a reexamination 
proceeding under this chapter--
            ``(1) may appeal under the provisions of section 134 of 
        this title, and may appeal under the provisions of sections 141 
        through 144 of this title, with respect to any decision adverse 
        to the patentability of any original or proposed amended or new 
        claim of the patent, and
            ``(2) may be a party to any appeal taken by a third-party 
        requester pursuant to subsection (b) of this section.
    ``(b) Third-Party Requester.--A third-party requester may--
            ``(1) appeal under the provisions of section 134 of this 
        title, and may appeal under the provisions of sections 141 
        through 144 of this title, with respect to any final decision 
        favorable to the patentability of any original or proposed 
        amended or new claim of the patent; or
            ``(2) be a party to any appeal taken by the patent owner, 
        subject to subsection (c) of this section.
    ``(c) Participation as Party.--
            ``(1) In general.--A third-party requester whose request 
        for a reexamination results in an order under section 304 of 
        this title is estopped from asserting at a later time, in any 
        civil action arising in whole or in part under section 1338 of 
        title 28, the invalidity of any claim determined to be 
        patentable on appeal on any ground which the third-party 
        requester raised or could have raised during the reexamination 
        proceedings. This subsection does not prevent the assertion of 
        invalidity based on newly discovered prior art unavailable to 
        the third-party requester and the Patent Office at the time of 
        the reexamination proceedings.
            ``(2) Election to participate.--A third-party requester is 
        deemed not to have participated as a party to an appeal by the 
        patent owner unless, not later than 20 days after the patent 
        owner has filed notice of appeal, the third-party requester 
        files notice with the Commissioner electing to participate.''.
    (f) Reexamination Prohibited.--
            (1) In general.--Chapter 30 of title 35, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 308. Reexamination prohibited
    ``(a) Order for Reexamination.--Notwithstanding any provision of 
this chapter, once an order for reexamination of a patent has been 
issued under section 304 of this title, neither the patent owner nor 
the third-party requester, if any, nor privies of either, may file a 
subsequent request for reexamination of the patent until a 
reexamination certificate is issued and published under section 307 of 
this title, unless authorized by the Commissioner.
    ``(b) Final Decision.--Once a final decision has been entered 
against a party in a civil action arising in whole or in part under 
section 1338 of title 28 that the party has not sustained its burden of 
proving the invalidity of any patent claim in suit or if a final 
decision in a reexamination proceeding instituted by a third-party 
requester is favorable to a patentability of any original or proposed 
amended as new claim of the patent and such decision is not appealed by 
the third-party requester under section 306(b), then neither that party 
nor its privies may thereafter request reexamination of any such patent 
claim on the basis of issues which that party or its privies raised or 
could have raised in such civil action or reexamination proceeding, and 
a reexamination requested by that party or its privies on the basis of 
such issues may not thereafter be maintained by the Office, 
notwithstanding any other provision of this chapter. This subsection 
does not prevent the assertion of invalidity based on newly discovered 
prior art unavailable to the third-party requester and the Patent 
Office at the time of the reexamination proceedings.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 30 of title 35, United States Code, is 
        amended by adding at the end the following:

``308. Reexamination prohibited.''.

SEC. 474. CONFORMING AMENDMENTS.

    (a) Patent Fees; Patent Search Systems.--Section 41(a)(7) of title 
35, United States Code, is amended to read as follows:
            ``(7) On filing each petition for the revival of an 
        unintentionally abandoned application for a patent, for the 
        unintentionally delayed payment of the fee for issuing each 
        patent, or for an unintentionally delayed response by the 
        patent owner in a reexamination proceeding, $1,250, unless the 
        petition is filed under sections 133 or 151 of this title, in 
        which case the fee shall be $110.''.
    (b) Appeal to the Board of Patent Appeals and Interferences.--
Section 134 of title 35, United States Code, is amended to read as 
follows:
``Sec. 134. Appeal to the Board of Patent Appeals and Interferences
    ``(a) Patent Applicant.--An applicant for a patent, any of whose 
claims has been twice rejected, may appeal from the decision of the 
primary examiner to the Board of Patent Appeals and Interferences, 
having once paid the fee for such appeal.
    ``(b) Patent Owner.--A patent owner in a reexamination proceeding 
may appeal from the final rejection of any claim by the primary 
examiner to the Board of Patent Appeals and Interferences, having once 
paid the fee for such appeal.
    ``(c) Third-Party.--A third-party requester may appeal to the Board 
of Patent Appeals and Interferences from the final decision of the 
primary examiner favorable to the patentability of any original or 
proposed amended or new claim of a patent, having once paid the fee for 
such appeal.''.
    (d) Appeal to Court of Appeals for the Federal Circuit.--Section 
141 of title 35, United States Code, is amended by amending the first 
sentence to read as follows: ``An applicant, a patent owner, or a 
third-party requester, dissatisfied with the final decision in an 
appeal to the Board of Patent Appeals and Interferences under section 
134 of this title, may appeal the decision to the United States Court 
of Appeals for the Federal Circuit.''.
    (e) Proceedings on Appeal.--Section 143 of title 35, United States 
Code, is amended by amending the third sentence to read as follows: 
``In ex parte and reexamination cases, the Commissioner shall submit to 
the court in writing the grounds for the decision of the Patent Office, 
addressing all the issues involved in the appeal.''.
    (f) Civil Action To Obtain Patent.--Section 145 of title 35, United 
States Code, is amended in the first sentence by inserting ``(a)'' 
after ``section 134''.

SEC. 475. REPORT TO CONGRESS.

    Not later than 5 years after the effective date of this subtitle, 
the Director shall submit to Congress a report evaluating whether the 
reexamination proceedings established under the amendments made by this 
subtitle are inequitable to any of the parties in interest and, if so, 
the report shall contain recommendations for changes to the amendments 
made by this subtitle to remove such inequity.

SEC. 476. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect on the date that is 1 year after the date of enactment of this 
Act and shall apply to all reexamination requests filed on or after 
such date.

              Subtitle F--Miscellaneous Patent Provisions

SEC. 481. PROVISIONAL APPLICATIONS.

    (a) Abandonment.--Section 111(b)(5) of title 35, United States 
Code, is amended to read as follows:
            ``(5) Abandonment.--Notwithstanding the absence of a claim, 
        upon timely request and as prescribed by the Commissioner, a 
        provisional application may be treated as an application filed 
        under subsection (a). Subject to section 1993(c)(3) of this 
        title, if no such request is made, the provisional application 
        shall be regarded as abandoned 12 months after the filing date 
        of such application and shall not be subject to revival 
        thereafter.''.
    (b) Technical Amendment Relating to Weekends and Holidays.--Section 
119(e) of title 35, United States Code, is amended by adding at the end 
the following:
            ``(3) If the day that is 12 months after the filing date of 
        a provisional application falls on a Saturday, Sunday, or 
        Federal holiday within the District of Columbia, the period of 
        pendency of the provisional application shall be extended to 
        the next succeeding secular or business day.''.
    (c) Effective Date.--The amendments made by subsection (a) apply to 
a provisional application filed on or after June 8, 1995.

SEC. 482. INTERNATIONAL APPLICATIONS.

    Section 119 of title 35, United States Code, is amended as follows:
            (1) In subsection (a), insert ``or in a WTO member 
        country'' after ``or to citizens of the United States,''.
            (2) At the end of section 119 add the following new 
        subsections:
    ``(f) Applications for plant breeder's rights filed in a WTO member 
country (or in a foreign UPOV Contracting Party) shall have the same 
effect for the purpose of the right of priority under subsections (a) 
through (c) of this section as applications for patents, subject to the 
same conditions and requirements of this section as apply to 
applications for patents.
    ``(g) As used in this section--
            ``(1) the term `WTO member country' has the same meaning as 
        the term is defined in section 104(b)(2) of this title; and
            ``(2) the term `UPOV Contracting Party' means a member of 
        the International Convention for the Protection of New 
        Varieties of Plants.''.

SEC. 483. ACCESS TO ELECTRONIC PATENT INFORMATION.

    (a) In General.--The United States Patent and Trademark 
Organization shall develop and implement statewide computer networks 
with remote library sites in requesting rural States such that citizens 
in those States will have enhanced access to information in their 
State's patent and trademark depository library.
    (b) Definition.--In this section, the term ``rural States'' means 
the States that qualified on January 1, 1997, as rural States under 
section 1501(b) of the Omnibus Crime Control and Safe Streets Act of 
1968 (42 U.S.C. 379bb(b)).

SEC. 484. CERTAIN LIMITATIONS ON DAMAGES FOR PATENT INFRINGEMENT NOT 
              APPLICABLE.

    Section 287(c) of title 35, United States Code, is amended in 
paragraph (4) by striking ``before the date of enactment of this 
subsection'' and inserting ``based on an application the earliest 
effective filing date of which is prior to September 30, 1996''.

SEC. 485. PLANT PATENTS.

    (a) Tuber Propagated Plants.--Section 161 of title 35, United 
States Code, is amended by striking ``a tuber propagated plant or''.
    (b) Rights in Plant Patents.--The text of section 163 of title 35, 
United States Code, is amended to read as follows: ``In the case of a 
plant patent, the grant to the patentee, such patentee's heirs or 
assigns, shall have the right to exclude others from asexually 
reproducing the plant, and from using, offering for sale, or selling 
the plant so reproduced, or any of its parts, throughout the United 
States, or from importing the plant so reproduced, or any parts 
thereof, into the United States.''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply on the date of enactment of this Act. The amendments made by 
subsection (b) shall apply to any plant patent issued on or after the 
date of enactment of this Act.

SEC. 486. ELECTRONIC FILING.

    Section 22 of title 35, United States Code, is amended by striking 
``printed or typewritten'' and inserting ``printed, typewritten, or on 
an electronic medium''.

SEC. 487. STUDY AND REPORT ON BIOLOGICAL DEPOSITS IN SUPPORT OF 
              BIOTECHNOLOGY PATENTS.

    (a) In General.--No later than 6 months after the date of enactment 
of this Act, the General Accounting Office, in consultation with the 
United States Patent Office, shall conduct a study and submit a report 
to Congress on the potential risks to the United States biotechnology 
industry relating to biological deposits in support of biotechnology 
patents.
    (b) Contents.--The study conducted under this section shall 
include--
            (1) an examination of the risk of export and the risk of 
        third-party transfer of biological deposits, and the risks 
        posed by the change to 18-month publication requirements;
            (2) an analysis of comparative legal and regulatory 
        regimes; and
            (3) any related recommendations.
    (c) Consideration of Report.--In drafting regulations affecting 
biological deposits (including any modification of 37 Code of Federal 
Regulations 1.801 et seq.), the United States Patent Office shall 
consider the recommendations of the study conducted under this section.

                   TITLE V--STATISTICAL CONSOLIDATION

                     Subtitle A--General Provisions

SEC. 501. FINDINGS.

    Congress, recognizing the importance of statistical information in 
the development of national priorities and policies and in the 
administration of public programs, finds that--
            (1) improved coordination and planning among the 
        statistical programs of the Federal Government is necessary--
                    (A) to strengthen and improve the quality and 
                utility of Federal statistics; and
                    (B) to reduce duplication and waste in information 
                collected for statistical purposes;
            (2) while the demand for statistical information has grown 
        substantially over the 30-year period preceding the date of 
        enactment of this Act, the lack of coordinated planning within 
        the decentralized Federal statistical system has limited the 
        usefulness of statistics in defining problems and determining 
        national policies to deal with complex social and economic 
        issues;
            (3) the establishment of a unified statistical policy for 
        the Federal Government to ensure that--
                    (A) data available from Federal statistical 
                programs are responsive to the information needs of the 
                President and Congress in developing national policies; 
                and
                    (B) necessary statistical information is collected 
                with the least reporting burden imposed on individuals, 
                businesses, and public entities;
            (4) a central statistical policy and coordination office is 
        necessary--
                    (A) to develop and implement a Federal statistical 
                policy;
                    (B) to establish priorities for Federal statistical 
                programs;
                    (C) to oversee and evaluate the statistical 
                programs of the Government; and
                    (D) to ensure that data collected for statistical 
                purposes by the Government are collected and reported 
                in accordance with established standards; and
            (5) it is conducive and integral to a sound Federal policy 
        that the heads of major statistical agencies within a Federal 
        department or agency have direct access to the head of such 
        department or agency.

SEC. 502. SENSE OF CONGRESS.

    (a) Chief Statistician.--It is the sense of Congress that--
            (1) a more centralized statistical system is integral to 
        efficiency;
            (2) with increased efficiency comes better integration of 
        research, methodology, survey design, and taking advantage of 
        economies of scale;
            (3) the Chief Statistician should have the authority, 
        personnel, and other resources necessary to carry out the 
        duties of that office effectively, including duties relating to 
        statistical forms clearance;
            (4) statistical forms clearance at the Office of Management 
        and Budget should be better distinguished from regulatory forms 
        clearance; and
            (5) recognizing that the Chief Statistician has numerous 
        responsibilities with respect to statistical policy and 
        coordination, the Chief Statistician should have a direct 
        reporting relationship with the Director of the Office of 
        Management and Budget.
    (b) Confidentiality.--It is the sense of Congress that--
            (1) entities of the Federal Government (including the 
        Federal Council on Statistical Policy and the Interagency 
        Council on Statistical Policy) and private entities should 
        examine the efficacy of replacing the individual 
        confidentiality provisions of statistical agencies with a 
        single, uniform standard that guarantees confidentiality across 
        the affected agencies; and
            (2) those entities should also examine the sharing of 
        confidential data for statistical purposes within the Federal 
        Statistical Service and special arrangements to permit the 
        sharing of confidential data for statistical purposes with 
        State agencies cooperating with Federal agencies in statistical 
        programs.
    (c) Decennial Censuses.--It is the sense of Congress that the 
budget and functions of the Bureau of the Census relating to any 
decennial census of population should be segregated from the other 
budget and functions of the Bureau of the Census.

SEC. 503. DEFINITIONS.

    In this title:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Statistical Service.
            (2) Census of population.--The term ``census of 
        population'' has the meaning given such term by section 141(g) 
        of title 13, United States Code.
            (3) Chief statistician.--The term ``Chief Statistician'' 
        means the Chief Statistician of the Office of Management and 
        Budget.
            (4) Council.--The term ``Council'' means the Federal 
        Council on Statistical Policy under section 513.
            (5) Deputy administrator.--The term ``Deputy 
        Administrator'' means the Deputy Administrator of the Federal 
        Statistical Service.
            (6) Federal agency.--The term ``Federal agency'' has the 
        meaning provided the term ``agency'' in section 551(1) of title 
        5, United States Code.
            (7) Function.--The term ``function'' includes any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        activity, or program.
            (8) Office.--The term ``office'' includes any office, 
        bureau, institute, council, unit, or organizational entity, or 
        any component thereof.
            (9) Service.--The term ``Service'' means the Federal 
        Statistical Service.

      Subtitle B--Establishment of the Federal Statistical Service

SEC. 511. ESTABLISHMENT.

    The Federal Statistical Service is established as an independent 
establishment, as that term is defined in section 104 of title 5, 
United States Code, in the executive branch of the Federal Government.

SEC. 512. PRINCIPAL OFFICERS.

    (a) Administrator.--
            (1) In general.--There shall be at the head of the Service 
        an Administrator of the Federal Statistical Service, who shall 
        be appointed, from among individuals nominated for that purpose 
        by the Federal Council on Statistical Policy who are 
        experienced in the collection and utilization of statistical 
        data or survey research, by the President, by and with the 
advice and consent of the Senate.
            (2) Administration.--The Service, including all functions 
        and offices transferred to the Service under this title, shall 
        be administered, in accordance with the provisions of this 
        title, under the supervision and direction of the 
        Administrator.
            (3) Compensation of administrator.--The Administrator shall 
        receive basic pay at the rate payable for level II of the 
        Executive Schedule under section 5313 of title 5, United States 
        Code.
    (b) Deputy Administrator.--
            (1) In general.--There shall be in the Service a Deputy 
        Administrator of the Federal Statistical Service who shall be 
        appointed, from among individuals nominated for that purpose by 
        the Federal Council on Statistical Policy who are experienced 
        in the collection and utilization of statistical data or survey 
        research, by the President, by and with the advice and consent 
        of the Senate.
            (2) Duties of deputy administrator.--During the absence or 
        disability of the Administrator, or in the event of a vacancy 
        in the office of the Administrator, the Deputy Administrator 
        shall act as Administrator. The Deputy Administrator shall 
        perform such other duties and exercise such powers as the 
        Administrator may from time to time prescribe.
            (3) Compensation of deputy administrator.--The Deputy 
        Administrator shall receive basic pay at the rate payable for 
        level III of the Executive Schedule under section 5314 of title 
        5, United States Code.
    (c) Bureau Directors.--
            (1) In general.--There shall be in the Service--
                    (A) a Director of the Census who shall, on the 
                transfer of functions and offices under section 203, 
                serve as the head of the Bureau of the Census; and
                    (B) a Director of the Bureau of Economic Analysis 
                who shall, on the transfer of functions and offices 
                under section 203, serve as the head of the Bureau of 
                Economic Analysis; and
                    (C) a Director of the Bureau of Labor Statistics 
                who shall, on the transfer of functions and offices 
                under subtitle C, serve as the head of the Bureau of 
                Labor Statistics.
            (2) Appointment.--Each of the Directors referred to in 
        paragraph (1) shall be appointed by the President, by and with 
        the advice and consent of the Senate.
            (4) Compensation of director of bureau of economic 
        analysis.--
                    (A) In general.--The position of Director of the 
                Bureau of Economic Analysis shall be a Senior Executive 
                Service position.
                    (B) Senior executive service defined.--For purposes 
                of this paragraph, the term ``Senior Executive Service 
                position'' shall have the same meaning as in section 
                3132(a) of title 5, United States Code.
            (5) Terms.--The term of office for each Director referred 
        to in paragraph (1) shall be as specified in the predecessor 
        under the applicable provision of law in effect on the day 
        before the date of enactment of this Act, except that, 
        notwithstanding section 21 of title 13, United States Code, the 
        term of the Director of the Census shall be 4 years.
    (d) General Counsel.--There shall be in the Service a General 
Counsel who shall administer the Office of General Counsel of the 
Federal Statistical Service. The General Counsel shall be appointed by 
the President, by and with the advice and consent of the Senate.
    (e) Inspector General.--There shall be in the Service an Inspector 
General appointed in accordance with the Inspector General Act of 1978 
(5 U.S.C. App.).

SEC. 513. FEDERAL COUNCIL ON STATISTICAL POLICY.

    (a) Establishment.--A Federal Council on Statistical Policy shall 
advise the Service.
    (b) Composition.--The Council shall be composed of 9 members as 
follows:
            (1) The Administrator of the Federal Statistical Service.
            (2) The Director of the Census.
            (3) The Director of the Bureau of Labor Statistics.
            (4) The Director of the Bureau of Economic Analysis.
            (5) The Chief Statistician of the Office of Management and 
        Budget.
            (6) Two members appointed by the Majority Leader of the 
        Senate from among individuals who--
                    (A) are not officers or employees of the 
                Government; and
                    (B) are especially qualified to serve on the 
                Council by virtue of experience relating to 1 or more 
                of the bureaus referred to in title III.
            (7) Two members appointed by the Speaker of the House of 
        Representatives from among individuals who--
                    (A) are not officers or employees of the 
                Government; and
                    (B) are especially qualified to serve on the 
                Council by virtue of experience relating to 1 or more 
                of the bureaus referred to in section 203 or subtitle 
                C.
    (c) Terms.--
            (1) In general.--Each member under subsection (b)(6) shall 
        be appointed for a term of 5 years, except that, of the members 
        first appointed--
                    (A) 1 shall be appointed for a term of 5 years; and
                    (B) 1 shall be appointed for a term of 3 years.
            (2) Staggered terms.--Each member under subsection (b)(7) 
        shall be appointed for a term of 5 years, except that, of the 
        members first appointed--
                    (A) 1 shall be appointed for a term of 5 years; and
                    (B) 1 shall be appointed for a term of 2 years.
    (d) Functions.--
            (1) In general.--The Council shall--
                    (A) make any nominations required under section 
                512(a)(1);
                    (B) serve as an advisory body to the Chief 
                Statistician on confidentiality issues, such as those 
                relating to--
                            (i) the collection or sharing of data for 
                        statistical purposes among Federal agencies; 
                        and
                            (ii) the sharing of data, for statistical 
                        purposes, by States and political subdivisions 
                        with the Federal Government; and
                    (C) establish a statistical policy as described in 
                section 501(3).
            (2) Study and report as procedures.--
                    (A) Study.--The Council shall study procedures for 
                the release of major economic and social indicators by 
                the Federal Government.
                    (B) Report.--Not later than 18 months after the 
                date of enactment of this Act, the Council shall submit 
                to Congress a report on the findings of the study under 
                subparagraph (A).
            (3) Study of functions.--
                    (A) Study.--The Council shall study--
                            (i) whether or not the functions of the 
                        Bureau of the Census relating to decennial 
                        censuses of population could be delineated from 
                        the other functions of the Bureau; and
                            (ii) if the functions referred to in clause 
                        (i) could be delineated from other functions of 
                        the Bureau, recommendations on how such a 
                        delineation of functions might be achieved.
                    (B) Report.--Not later than 12 months after the 
                date of enactment of this Act, the Council shall submit 
                to Congress a report on the findings of the study 
                conducted under subparagraph (A).
            (4) Study and report on field offices.--
                    (A) Study.--The Council shall study--
                            (i) making as appropriate, the field 
                        offices of the Bureau of the Census part of the 
                        field offices of the Bureau of Labor 
                        Statistics; and
                            (ii) any savings anticipated as a result of 
                        the implementation of clause (i).
                    (B) Report.--Not later than 12 months after the 
                date of enactment of this Act, the Council shall submit 
                to Congress a report on the findings of the study 
                conducted under subparagraph (A).
    (e) Compensation.--Members of the Council under subsection (b)(6) 
shall be entitled to receive the daily equivalent of the 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 they are engaged in the actual performance of duties vested in 
the Council.
    (f) Chairperson.--The Chairperson of the Council shall be elected 
by and from the members for a term of 1 year.

             Subtitle C--Transfers of Functions and Offices

SEC. 521. TRANSFER OF THE BUREAU OF LABOR STATISTICS.

    There is transferred to the Service the Bureau of Labor Statistics 
of the Department of Labor, along with all of its functions and 
offices.

SEC. 522. TRANSFER DATE.

    The transfers of functions and offices under this title shall be 
effective on the date specified in section 102(c).

                 Subtitle D--Administrative Provisions

SEC. 531. OFFICERS AND EMPLOYEES.

    The Administrator may appoint and fix the compensation of such 
officers and employees as may be necessary to carry out the functions 
of the Administrator and the Service. Except as otherwise provided by 
law, such officers and employees shall be appointed in accordance with 
the civil service laws and their compensation shall be fixed in 
accordance with title 5, United States Code.

SEC. 532. EXPERTS AND CONSULTANTS.

    The Administrator, as may be provided in appropriation Acts, obtain 
the services of experts and consultants in accordance with section 3109 
of title 5, United States Code, and may compensate such experts and 
consultants at rates not to exceed the daily rate prescribed for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.

SEC. 533. ACCEPTANCE OF VOLUNTARY SERVICES.

    (a) In General.--Notwithstanding section 1342 of title 31, United 
States Code, the Administrator may accept, subject to regulations 
issued by the Office of Personnel Management, voluntary services if 
such services--
            (1) are to be uncompensated; and
            (2) are not used to displace any employee.
    (b) Treatment.--Any individual who provides voluntary services 
under this section shall not be considered a Federal employee for any 
purpose other than for purposes of chapter 81 of title 5, United States 
Code (relating to compensation for injury) and sections 2671 through 
2680 of title 28, United States Code (relating to tort claims).

SEC. 534. GENERAL AUTHORITY.

    In carrying out any function transferred by this Act, the 
Administrator, or any officer or employee of the Service, may exercise 
any authority available by law with respect to such function to the 
official or agency from which such function is transferred, and the 
actions of the Administrator in exercising such authority shall have 
the same force and effect as when exercised by such official or agency.

SEC. 535. DELEGATION.

    Except as otherwise provided in this title, the Administrator may 
delegate any function to such officers and employees of the Service as 
the Administrator may designate, and may authorize such successive 
redelegations of such functions within the Service as may be necessary 
or appropriate. No delegation of functions by the Administrator under 
this section or under any other provision of this title shall relieve 
the Administrator of responsibility for the Administration of such 
functions.

SEC. 536. REORGANIZATION.

    The Administrator may allocate or reallocate functions among the 
officers of the Service, and to establish, consolidate, alter, or 
abolish such offices or positions within the Service as may be 
necessary or appropriate.

SEC. 537. CONTRACTS.

    (a) In General.--Subject to the Federal Property and Administrative 
Services Act of 1949 and other applicable Federal law, the 
Administrator may make, enter into, and perform such contracts, grants, 
leases, cooperative agreements, and other similar transactions with 
Federal or other public agencies (including State and local 
governments) and private organizations and persons, and to make such 
payments, by way of advance or reimbursement, as the Administrator may 
determine necessary or appropriate to carry out functions of the 
Administrator or the Service.
    (b) Appropriation Authority Required.--No authority to enter into 
contracts or to make payments under this title shall be effective 
except to such extent or in such amounts as are provided in advance 
under appropriation Acts.

SEC. 538. REGULATIONS.

    The Administrator may prescribe such rules and regulations as the 
Administrator considers necessary or appropriate to administer and 
manage the functions of the Administrator or the Service, in accordance 
with chapter 5 of title 5, United States Code.

SEC. 539. SEAL.

    The Administrator shall cause a seal of office to be made for the 
Service of such design as the Administrator shall approve. Judicial 
notice shall be taken of such seal.

SEC. 540. ANNUAL REPORT.

    The Administrator, in consultation with the Council, shall, as soon 
as practicable after the close of each fiscal year, make a single, 
comprehensive report to the President for transmission to Congress on 
the activities of the Service during such fiscal year.

                       Subtitle E--Miscellaneous

SEC. 541. INCIDENTAL TRANSFERS.

    The Director of the Office of Management and Budget, in 
consultation with the Administrator, shall make such determinations as 
may be necessary with regard to the functions, offices, or portions 
thereof transferred by this title, and make such additional incidental 
dispositions of personnel, assets, liabilities, grants, contracts, 
property, records, and unexpended balances of appropriations, 
authorizations, allocations, and other funds held, used, arising from, 
available to, or to be made available in connection with such 
functions, offices, or portions thereof, as may be necessary to carry 
out this title. The Director shall provide for the termination of the 
affairs of all entities terminated by this title and, in consultation 
with the Administrator, for such further measures and dispositions as 
may be necessary to effectuate the purposes of this title.

SEC. 542. REFERENCES.

    With respect to any function transferred by this title and 
exercised on or after the date of such transfer, any reference in any 
other Federal law to any department, commission, or agency or any 
officer or office the functions of which so transferred shall be deemed 
to refer to the Administrator, other official, or component of the 
Service to which this title transfers such functions.

SEC. 543. PROPOSED CHANGES IN LAW.

    Not later than 90 days after the date of enactment of this Act, the 
President shall submit to Congress a description of any changes in 
Federal law necessary to reflect any transfers or other measures under 
this title.

SEC. 544. TRANSITION.

    (a) Use of Funds.--Funds available to any department or agency (or 
any official or component thereof), the functions or offices of which 
are transferred to the Administrator or the Service by this title, may, 
with the approval of the Director of the Office of Management and 
Budget, be used to pay the compensation and expenses of any officer 
appointed pursuant to this title and other transitional and planning 
expenses associated with the establishment of the Service or transfer 
of functions or offices thereto until such time as funds for such 
purposes are otherwise available.
    (b) Use of Personnel.--With the consent of the appropriate 
department or agency head concerned, the Administrator may utilize the 
services of such officers, employees, and other personnel of the 
departments and agencies from which functions or offices have been 
transferred to the Administrator or the Service, for such period of 
time as may reasonably be needed to facilitate the orderly 
implementation of this title.

SEC. 545. INTERIM APPOINTMENTS.

    (a) Authority To Appoint.--Notwithstanding any other provision of 
law, in the event that 1 or more officers required by this title to be 
appointed by and with the advice and consent of the Senate shall not 
have entered upon office on the date of the transfer of functions and 
offices under section 203 or subtitle C, the President may designate an 
officer in the executive branch to act in such office for 120 days or 
until the office is filled as provided in this title, whichever occurs 
first.
    (b) Compensation.--Any officer acting in an office in the 
Department pursuant to the provisions of subsection (a) shall receive 
compensation at the rate prescribed for such office under this title.

SEC. 546. CONFORMING AMENDMENTS.

    (a) Director, Bureau of Labor Statistics.--Section 5315 of title 5, 
United States Code, as amended by this Act, is further amended by 
adding at the end the following new item:
            ``Director, Bureau of Labor Statistics.''.
    (b) General Counsel; Inspector General.--Section 5315 of title 5, 
United States Code, as amended by subsection (a), is further amended by 
adding at the end the following new items:
            ``General Counsel, Bureau of Labor Statistics.
            ``Inspector General, Bureau of Labor Statistics.''.
    (c) Bureau Directors.--Section 5315 of title 5, United States Code, 
as amended by subsection (b), is further amended--
            (1) by striking ``The Commissioner of Labor Statistics, 
        Department of Labor''; and
            (2) by inserting after the item relating to the Director of 
        the Census, the following new items:
            ``Director of the Bureau of Labor Statistics, Federal 
        Statistical Service.
            ``Director of the Bureau of Economic Analysis, Federal 
        Statistical Service.''.
    (d) Deputy Administrator.--Section 5314 of title 5, United States 
Code, is amended by adding at the end the following new item:
            ``Deputy Administrator, Federal Statistical Service.''.
    (e) Administrator.--Section 5313 of title 5, United States Code, is 
amended by adding at the end the following new item:
            ``Administrator, Federal Statistical Service.''.

                   TITLE VI--MISCELLANEOUS PROVISIONS

SEC. 601. REFERENCES.

    Any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to a department or office from which a function is 
transferred by this Act--
            (1) to the head of such department or office is deemed to 
        refer to the head of the department or office to which such 
        function is transferred; or
            (2) to such department or office is deemed to refer to the 
        department or office to which such function is transferred.

SEC. 602. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a 
function is transferred by this Act may, for purposes of performing the 
function, exercise all authorities under any other provision of law 
that were available with respect to the performance of that function to 
the official responsible for the performance of the function 
immediately before the effective date of the transfer of the function 
under this Act.

SEC. 603. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, the Secretary of Commerce, 
        the United States Trade Representative, any officer or employee 
        of any office transferred by this Act, or any other Government 
        official, or by a court of competent jurisdiction, in the 
        performance of any function that is transferred by this Act; 
        and
            (2) that are in effect on the effective date of such 
        transfer (or become effective after such date pursuant to their 
        terms as in effect on such effective date),
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, any other authorized official, a court of competent 
jurisdiction, or operation of law.
    (b) Proceedings.--This Act shall not affect any proceedings or any 
application for any benefits, service, license, permit, certificate, or 
financial assistance pending on the date of enactment of this Act 
before an office transferred by this Act, but such proceedings and 
applications shall be continued. Orders shall be issued in such 
proceedings, appeals shall be taken therefrom, and payments shall be 
made pursuant to such orders, as if this Act had not been enacted, and 
orders issued in any such proceeding shall continue in effect until 
modified, terminated, superseded, or revoked by a duly authorized 
official, by a court of competent jurisdiction, or by operation of law. 
Nothing in this subsection shall be considered to prohibit the 
discontinuance or modification of any such proceeding under the same 
terms and conditions and to the same extent that such proceeding could 
have been discontinued or modified if this Act had not been enacted.
    (c) Suits.--This Act shall not affect suits commenced before the 
date of enactment of this Act, and in all such suits, proceeding shall 
be had, appeals taken, and judgments rendered in the same manner and 
with the same effect as if this Act had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Department of Commerce or the Secretary of 
Commerce, or by or against any individual in the official capacity of 
such individual as an officer or employee of an office transferred by 
this Act, shall abate by reason of the enactment of this Act.
    (e) Continuance of Suits.--If any Government officer in the 
official capacity of such officer is party to a suit with respect to a 
function of the officer, and under this Act such function is 
transferred to any other officer or office, then such suit shall be 
continued with the other officer or the head of such other office, as 
applicable, substituted or added as a party.
    (f) Administrative Procedure and Judicial Review.--Except as 
otherwise provided by this Act, any statutory requirements relating to 
notice, hearings, action upon the record, or administrative or judicial 
review that apply to any function transferred by this Act shall apply 
to the exercise of such function by the head of the Federal agency, and 
other officers of the agency, to which such function is transferred by 
this Act.

SEC. 604. TRANSFER OF ASSETS.

    Except as otherwise provided in this Act, so much of the personnel, 
property, records, and unexpended balances of appropriations, 
allocations, and other funds employed, used, held, available, or to be 
made available in connection with a function transferred to an official 
or agency by this Act shall be available to the official or the head of 
that agency, respectively, at such time or times as the Director of the 
Office of Management and Budget directs for use in connection with the 
functions transferred.

SEC. 605. DELEGATION AND ASSIGNMENT.

    Except as otherwise expressly prohibited by law or otherwise 
provided in this Act, an official to whom functions are transferred 
under this Act (including the head of any office to which functions are 
transferred under this Act) may delegate any of the functions so 
transferred to such officers and employees of the office of the 
official as the official may designate, and may authorize successive 
redelegations of such functions as may be necessary or appropriate. No 
delegation of functions under this section or under any other provision 
of this Act shall relieve the official to whom a function is 
transferred under this Act of responsibility for the administration of 
the function.

SEC. 606. AUTHORITY OF DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET 
              WITH RESPECT TO FUNCTIONS TRANSFERRED.

    (a) Determinations.--If necessary, the Director shall make any 
determination of the functions that are transferred under this Act.
    (b) Incidental Transfers.--The Director, at such time or times as 
the Director shall provide, may make such determinations as may be 
necessary with regard to the functions transferred by this Act, and to 
make such additional incidental dispositions of personnel, assets, 
liabilities, grants, contracts, property, records, and unexpended 
balances of appropriations, authorizations, allocations, and other 
funds held, used, arising from, available to, or to be made available 
in connection with such functions, as may be necessary to carry out the 
provisions of this Act. The Director shall provide for the termination 
of the affairs of all entities terminated by this Act and for such 
further measures and dispositions as may be necessary to effectuate the 
purposes of this Act.

SEC. 607. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.

    For purposes of this Act, the vesting of a function in a department 
or office pursuant to reestablishment of an office shall be considered 
to be the transfer of the function.

SEC. 608. AVAILABILITY OF EXISTING FUNDS.

    Existing appropriations and funds available for the performance of 
functions, programs, and activities terminated pursuant to this Act 
shall remain available, for the duration of their period of 
availability, for necessary expenses in connection with the termination 
and resolution of such functions, programs, and activities.

SEC. 609. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``function'' includes any duty, obligation, 
        power, authority, responsibility, right, privilege, activity, 
        or program; and
            (2) the term `office' includes any office, administration, 
        agency, bureau, institute, council, unit, organizational 
        entity, or component thereof.

SEC. 610. CONFORMING AMENDMENTS.

    Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
            (1) in paragraph (1), by striking ``or the Commissioner of 
        the Social Security Administration;'' and inserting ``the 
        Commissioner of the Social Security Administration; the 
        Administrator of the National Oceanic and Atmospheric 
        Administration; or the Administrator of the Federal Statistical 
        Service;''; and
            (2) in paragraph (2), by striking ``or the Social Security 
        Administration'' and inserting ``the National Oceanic and 
        Atmospheric Administration, the Federal Statistical Service, or 
        the Social Security Administration''.
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