[Congressional Record Volume 140, Number 83 (Monday, June 27, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 27, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                          AMENDMENTS SUBMITTED

                                 ______


                     PRODUCT LIABILITY FAIRNESS ACT

                                 ______


                HEFLIN AMENDMENTS NOS. 1860 THROUGH 1875

  (Ordered to lie on the table.)
  Mr. HEFLIN submitted 16 amendments intended to be proposed by him to 
the bill (S. 687) to regulate interstate commerce by providing for a 
uniform product liability law, and for other purposes; as follows:

                           Amendment No. 1860

       On page 31, line 1, strike out all through line 13.
                                  ____


                           Amendment No. 1861

       At the appropriate place strike the section relating to 
     several liability for noneconomic loss.
                                  ____


                           Amendment No. 1862

       On page 8, line 22, strike out all after the period through 
     line 2 on page 9.
                                  ____


                           Amendment No. 1863

       At the appropriate place strike out the following: ``A 
     civil action brought against a manufacturer or product seller 
     for loss or damage to a product itself or for commercial loss 
     is not subject to this Act and shall be governed by 
     applicable commercial or contract law.''.
                                  ____


                           Amendment No. 1864

       On page 5, line 11, beginning with the semicolon, strike 
     out all through line 12, and insert in lieu thereof ``, or 
     any commercial loss or harm or loss or damage to a product 
     itself;''.
                                  ____


                           Amendment No. 1865

       At the appropriate place strike out the following:
       Sec.  . Notwithstanding any other provision of this Act, 
     the definition of the term ``harm'' shall include any 
     commercial loss or harm or loss or damage to a product 
     itself.
                                  ____


                           Amendment No. 1866

       On page 5, line 20, insert before the semicolon ``and who 
     employs fewer than 20 employees for each working day in each 
     of 20 or more calendar weeks in the current or preceding 
     calendar year''.
                                  ____


                           Amendment No. 1867

       On page 6, line 4, insert before the semicolon ``and who 
     employs fewer than 20 employees for each working day in each 
     of 20 or more calendar weeks in the current or preceding 
     calendar year''.
                                  ____


                           Amendment No. 1868

       On page 31, insert between lines 13 and 14 the following 
     new subsection:
       (c) Limitation.--This section shall apply only to 
     defendants found to be less than 25 percent responsible for 
     the claimant's harm.
                                  ____


                           Amendment No. 1869

       On page 18, line 25, beginning with ``conscious'' strike 
     out all through the period on line 2 of page 19 and insert in 
     lieu thereof ``willful, wanton, or reckless conduct or 
     conduct representing conscious indifference to safety.''.
                                  ____


                           Amendment No. 1870

       At the appropriate place in the section relating to uniform 
     standards for award of punitive damages, strike out 
     ``conscious, flagrant indifference to the safety of those 
     persons who might be harmed by the product'' and insert in 
     lieu thereof ``willful, wanton, or reckless conduct or 
     conduct representing conscious indifference to safety.''.
                                  ____


                           Amendment No. 1871

       On page 11, beginning with line 23, strike out all through 
     line 18 on page 14.
                                  ____


                           Amendment No. 1872

       At the appropriate place, strike the section relating to 
     expedited product liability judgments.
                                  ____


                           Amendment No. 1873

       On page 13, line 16, strike out all after the period 
     through line 18.
                                  ____


                           Amendment No. 1874

       At the appropriate place in the section relating to 
     expedited product liability judgments, strike out the 
     following: ``Such fees shall be offset against any fees owed 
     by the claimant to the claimant's attorney by reason of the 
     final judgment.''.
                                  ____


                           Amendment No. 1875

       On page 19, insert between lines 6 and 7 the following:
       (b) Liability for Certain Claims Relating To Death.--In any 
     civil action in which the alleged harm to the claimant is 
     death and the applicable State law provides, or has been 
     construed to provide, for damages only punitive in nature, a 
     defendant may be liable for any such damages regardless of 
     whether a claim is asserted under this section. The recovery 
     of any such damages shall not bar a claim under this section.
       On page 19, line 7, strike out ``(b)'' and insert in lieu 
     thereof ``(c)''.
       On page 20, line 17, strike out ``(c)'' and insert in lieu 
     thereof ``(d)''.
       On page 22, line 7, strike out ``(d)'' and insert in lieu 
     thereof ``(e)''.
       On page 22, line 17, strike out ``(e)'' and insert in lieu 
     thereof ``(f)''.
                                 ______


            MOSELEY-BRAUN AMENDMENTS NOS. 1876 THROUGH 1878

  (Ordered to lie on the table.)
  Ms. MOSELEY-BRAUN submitted three amendments intended to be proposed 
by her to the bill, S. 687, supra; as follows:

                           Amendment No. 1876

       On page 18, strike out line 23 and all that follows through 
     page 20, line 7.
       On page 21, line 23, strike out ``(d) Separate 
     Proceeding.--'' and insert in lieu thereof ``(c) Separate 
     Proceeding.--''.
       On page 22, beginning on line 8, strike out ``(e) 
     Determining Amount of Punitive Damages.--'' and insert in 
     lieu thereof ``(d) Determining Amount of Punitive Damages.--
     ''
                                  ____


                           Amendment No. 1877

       On page 20, strike out line 8 and all that follows through 
     page 21, line 22.
       On page 21, line 23, strike out ``(d) Separate 
     Proceeding.--'' and insert in lieu thereof ``(c) Separate 
     Proceeding.--''.
       On page 22, beginning on line 8, strike out ``(e) 
     Determining Amount of Punitive Damages.--'' and insert in 
     lieu thereof ``(d) Determining Amount of Punitive Damages.--
     ''
                                  ____


                           Amendment No. 1878

       On page 18, strike out line 23 and all that follows through 
     page 21, line 22.
       On page 21, line 23, strike out ``(d) Separate 
     Proceeding.--'' and insert in lieu thereof ``(b) Separate 
     Proceeding.--''.
       On page 22, beginning on line 8, strike out ``(e) 
     Determining Amount of Punitive Damages.--'' and insert in 
     lieu thereof ``(c) Determining Amount of Punitive Damages.--
     ''
                                 ______


                      HOLLINGS AMENDMENT NO. 1879

  (Ordered to lie on the table.)
  Mr. HOLLINGS submitted an amendment intended to be proposed by him to 
the bill, S. 687, supra; as follows:

       At the appropriate place, insert the following new section:

     SEC.  . PRODUCT LIABILITY INSURANCE REPORTING.

       (a) Report to Congress.--The Secretary of Commerce 
     (hereafter in this section referred to as the ``Secretary'') 
     shall provide to the Congress before June 30 of each year 
     after the date of enactment of this Act a report analyzing 
     the impact of this Act on insurers which issue product 
     liability insurance either separately or in conjunction with 
     other insurance; and on self-insurers, captive insurers, and 
     risk retention groups.
       (b) Collection of Data.--To carry out the purposes of this 
     section, the Secretary shall collect from each insurer all 
     data considered necessary by the Secretary to present and 
     analyze fully the impact of this Act on such insurers.
       (c) Regulations.--Within 120 days after the date of 
     enactment of this Act, the Secretary shall issue such 
     regulations as may be necessary to implement the purposes, 
     and carry out the provisions, of this section. Such 
     regulations shall be promulgated in accordance with section 
     553 of title 5, United States Code. Such regulations shall--
       (1) require the reporting of information sufficiently 
     comprehensive to make possible a full evaluation of the 
     impact of this Act on such insurers;
       (2) specify the information to be provided by such insurers 
     and the format of such information, taking into account 
     methods to minimize the paperwork and cost burdens on such 
     insurers and the Federal Government; and
       (3) provide, to the maximum extent practicable, that such 
     information is obtained from existing sources, including, but 
     not limited to, State insurance commissioners, recognized 
     insurance statistical agencies, the Administrative Office of 
     the United States Courts, and the National Center for State 
     Courts.
       (d) Subpoena.--The Secretary may subpoena witnesses and 
     records related to the report required under this section 
     from any place in the United States. If a witness disobeys 
     such subpoena, the Secretary may petition any district court 
     of the United States to enforce such subpoena. The court may 
     punish a refusal to obey an order of the court to comply with 
     such a subpoena as a contempt of court.
                                 ______


               FEINGOLD AMENDMENTS NOS. 1880 THROUGH 1882

  (Ordered to lie on the table.)
  Mr. FEINGOLD submitted three amendments intended to be proposed by 
him to the bill, S. 687, supra; as follows:

                           Amendment No. 1880

       On page 6, line 15, insert before the semicolon ``or 
     injury, illness, disease, or death of an individual who is 
     less than 18 years of age''.
                                  ____


                           Amendment No. 1881

       On page 7, line 15, insert before the semicolon ``, or any 
     product designed or marketed primarily for the use of 
     children''.
                                  ____


                           Amendment No. 1882

       On page 7, line 15, insert before the semicolon ``, or any 
     product marketed primarily for the use of children''.
                                 ______


       ROCKEFELLER (AND GORTON) AMENDMENTS NOS. 1883 THROUGH 1885

  (Ordered to lie on table.)
  Mr. ROCKEFELLER (for himself and Mr. Gorton) submitted three 
amendments intended to be proposed by them to the bill, S. 687, supra; 
as follows:

                           Amendment No. 1883

       On page 8, line 20, after the period insert the following: 
     ``A civil action for negligent entrustment is not subject to 
     this Act and shall be governed by applicable State law. For 
     purposes of the preceding sentence, the term ``negligent 
     entrustment'' means causes of action under applicable State 
     law that subject product sellers to liability for their 
     failure to meet the applicable standard of care under State 
     law in selling a product to a person who, because of his 
     youth, inexperience, or otherwise, is likely to handle the 
     product in a manner to cause harm to himself or others.
                                  ____


                           Amendment No. 1884

       At the appropriate place insert the following new section:

     SEC.  . SUBSEQUENT REMEDIAL MEASURES.

       (a) Evidence Generally Inadmissible.--In any civil action 
     subject to this Act, evidence of any measure taken after an 
     event, which, if taken before the event would have made the 
     event less likely to occur, is not admissible.
       (b) Limited Admissibility for Impeachment.--Such evidence 
     may be admitted, however, in a civil action subject to this 
     Act in which it is alleged that a product was unreasonably 
     dangerous in design or formulation, but solely for the 
     purpose of impeaching the credibility of a witness for the 
     manufacturer or product seller whose testimony has expressly 
     denied the feasibility of such a measure.
                                  ____


                           Amendment No. 1885

       On page 21, line 17, strike ``or'' and insert ``and''.
                                 ______


              ROCKEFELLER (AND KERREY) AMENDMENT NO. 1886

  (Ordered to lie on the table.)
  Mr. ROCKEFELLER (for himself and Mr. Kerrey) submitted an amendment 
intended to be proposed by them to the bill, S. 687, supra; as follows:

       On page 13, line 20, after the period insert the following: 
     ``The amount of any such reduction may not exceed $50,000.''
                                 ______


                BOXER AMENDMENTS NOS. 1887 THROUGH 1888

  (Ordered to lie on the table.)
  Mrs. BOXER submitted two amendments intended to be proposed by her to 
the bill, S. 687, supra; as follows:

                           Amendment No. 1887

       On page 6, line 15, insert before the semicolon ``or any 
     harm, injury, illness or disease caused to reproductive 
     organs or capacity''.
                                  ____


                           Amendment No. 1888

       At the appropriate place insert the following:
       Sec.   . Notwithstanding any other provision of this Act, 
     the definition of the term ``noneconomic loss'' shall not 
     include any harm, injury, illness or disease caused to 
     reproductive organs or capacity.''.
                                 ______


                     LAUTENBERG AMENDMENT NO. 1889

  (Ordered to lie on the table.)
  Mr. LAUTENBERG submitted an amendment intended to be proposed by him 
to the bill, S. 687, supra; as follows:

       At the end of section 202, add the following:
       (d) Nonapplicability.--This section shall not apply to a 
     civil action for harm caused by a firearm that was 
     transferred unlawfully or negligently by a product seller.
                                 ______


               LAUTENBERG (AND HARKIN) AMENDMENT NO. 1890

  (Ordered to lie on the table.)
  Mr. LAUTENBERG (for himself and Mr. Harkin) submitted an amendment 
intended to be proposed by them to the bill, S. 687, supra; as follows:

       At the appropriate place, insert the following new title:

         TITLE III--MEDICARE AND MEDICAID THIRD PARTY LIABILITY

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Medicare and Medicaid 
     Third Party Liability Act''.

     SEC. 302. FINDINGS AND PURPOSE.

       (a) Findings.--The Congress finds that--
       (1) illnesses and diseases that result from the use of 
     tobacco products cost Federal Government health care programs 
     billions of dollars, including at least $16,000,000,000 in 
     the medicare program and $3,000,000,000 in the medicaid 
     program for inpatient hospital services in fiscal year 1994;
       (2) over the next 20 years, such illnesses and diseases 
     will cost the medicare trust funds at least $800,000,000,000;
       (3) in April 1994, the trustees of the medicare trust funds 
     concluded that such funds may be insolvent in 7 years, with 
     $128,000,000,000 of expenditures due to such illnesses and 
     diseases;
       (4) recent discoveries, including documents, patents and 
     patent applications, and testimony, have shown that--
       (A) the tobacco industry has known for years that the 
     nicotine in cigarettes is addictive,
       (B) the industry has attempted both to conceal this 
     information from the public and the Government and to 
     manipulate the amount of nicotine in cigarettes, and
       (C) it is possible to manufacture cigarettes which are far 
     less dangerous to consumers;
       (5) more than 36 percent of medicare recipients are former 
     smokers and 20 percent are current smokers;
       (6) approximately 43 percent of medicaid recipients smoke, 
     compared to 26 percent of the general public; and
       (7) the medicare population is much more at risk of 
     contacting illnesses and diseases that result from the use 
     tobacco products then younger smokers, because such 
     population has smoked longer;
       (8) legal scholars and courts are increasingly agreeing 
     that it is appropriate to use statistical evidence to prove 
     causation; and
       (9) in view of the large number of Americans killed, 
     disabled, or otherwise injured each year as a result of 
     smoking cigarettes, the addictiveness of the nicotine in 
     cigarettes, and the absence of any significant benefits to 
     society from smoking cigarettes are an unreasonably dangerous 
     product and cigarette manufacturers are engaged in abnormally 
     dangerous activities.
       (b) Purpose.--The purpose of this title is to allow the 
     American taxpayers to recoup billions of dollars in Federal 
     Government health care funds spent on tobacco related 
     illnesses and diseases.

     SEC. 303. CLASS ACTION TO RECOVER COSTS TO FEDERAL GOVERNMENT 
                   HEALTH CARE PROGRAMS OF TOBACCO RELATED 
                   ILLNESSES AND DISEASES.

       (a) In General.--(1) With respect to payments made under 
     any applicable Federal Government health care program to or 
     on behalf of more than one recipient with a disease, illness, 
     condition, or complication caused, in whole or in part, by 
     the use of tobacco products, the Attorney General of the 
     United States may seek recovery for such payments from third 
     parties (or any successors to such third parties) that 
     manufacture tobacco products. The Attorney General (after 
     consultation with the appropriate Secretaries who administer 
     such programs) may bring an action in the name of the United 
     States in United States district court to recover such 
     payments made to or on behalf of all such recipients in one 
     proceeding.
       (2) Any action to enforce the rights of the Attorney 
     General under this section with respect to any payment 
     described in paragraph (1) shall be commenced within 5 years 
     of such payment.
       (3) For purposes of paragraph (1), the term ``applicable 
     Federal Government health care program'' includes--
       (A) the medicare program under title XVIII of the Social 
     Security Act;
       (B) the medicaid program under title XIX of such Act;
       (C) the veterans health care program under title 28, United 
     States Code; and
       (D) any other similar Federal health care program.
       (b) Notice Under the Class Action.--(1) In any action 
     brought under this section, no notice to recipients described 
     in subsection (a)(1) is required, and such recipients shall 
     have no right to become a party to such action. Such action 
     is independent of any rights or causes of action of such 
     recipients.
       (2) In any such action in which the number of recipients 
     described in subsection (a)(1) is so large as to cause it to 
     be impracticable to join or identify each claim, the Attorney 
     General shall not be required to so identify the individual 
     recipients for which payment has been made, but rather can 
     proceed to seek recovery based upon payments made to or on 
     behalf of an entire class of recipients.
       (c) Rules of Evidence.--In any action brought under this 
     section, the Federal Rules of Evidence shall be construed, 
     regarding the introduction and probative value of evidence on 
     the issues of causation and damages, in order to effectuate 
     the purposes of this Act to the greatest extent possible. The 
     issues of causation and damages in any such action may be 
     proven by use of statistical analysis or epidemiological 
     evidence, or both.
       (d) Share of Liability.--In any action brought under this 
     section in which a third party is liable due to its 
     manufacture, sale, or distribution of a tobacco product, the 
     Attorney General shall be allowed to proceed under a market 
     share theory, if the products involved are substantially 
     interchangeable and substantially similar factual or legal 
     issues would be involved in seeking recovery against each 
     liable third party individually. In the alternative, the 
     Attorney General shall be allowed to proceed under a theory 
     of concerted action or enterprise liability, or both, if 
     warranted by the facts presented to the court.
       (e) Distribution of Recovery.--Amounts recovered under any 
     action brought under this section shall be paid to the United 
     States and disposed of as follows:
       (1) In the case of amounts recovered arising out of a claim 
     under title XIX of the Social Security Act, there shall be 
     paid to each State agency an amount bearing the same 
     proportion to the total amount received as the State's share 
     of the amount paid by the State agency for such claim bears 
     to the total amount paid for such claim.
       (2) Such portion of the amounts recovered as is determined 
     to have been paid out of the trust funds under sections 1817 
     and 1841 of the Social Security Act shall be repaid to such 
     trust funds.
       (3) The remainder of the amounts recovered shall be 
     deposited as miscellaneous receipts of the Treasury of the 
     United States.
                                 ______


               LAUTENBERG (AND SIMON) AMENDMENT NO. 1891

  (Ordered to lie on the table.)
  Mr. LAUTENBERG (for himself and Mr. Simon) submitted an amendment 
intended to be proposed by them to the bill, S. 687, supra; as follows:

       At the end of the bill, add the following:

                          TITLE III--FIREARMS

     SEC. 301. VICTIM COMPENSATION FROM PERSONS WHO UNLAWFULLY 
                   PROVIDE FIREARMS TO JUVENILES, FELONS, AND 
                   OTHER DISQUALIFIED INDIVIDUALS.

       (a) Victim Compensation.--Section 924 of title 18, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(j) Victim Compensation.--
       ``(1) In general.--Any person who sells, delivers, or 
     otherwise transfers--
       ``(A) a firearm in violation of section 922(d) or section 
     922(b)(1); or
       ``(B) a handgun to a person who the transferor knows or has 
     reasonable cause to believe is a juvenile, except as provided 
     in paragraph (6),

     shall be liable for damages caused by a discharge of the 
     transferred firearm by the transferee.
       ``(2) Civil Action.--An action to recover damages under 
     paragraph (1) may be brought in a United States district 
     court by, or on behalf of, any person, or the estate of any 
     person, who suffers damages resulting from bodily injury to 
     or the death of any person caused by a discharge of the 
     transferred firearm by the transferee.
       ``(3) Disentitlement to recovery.--There shall be no 
     liability under this subsection if it is established by a 
     preponderance of the evidence that--
       ``(A) the damages were suffered by a person who was engaged 
     in a criminal act against the person or property of another 
     at the time of the injury; or
       ``(B) the injury was self-inflicted, unless the plaintiff 
     establishes that, at the time of the transfer, the transferor 
     knew or had reasonable cause to believe that the transferee 
     had not attained the age of 18 years or had been adjudicated 
     as a mental defective or committed to a mental institution.
       ``(4) Period of liability.--No action under this subsection 
     may be brought for damages that are caused more than 5 years 
     after the date of the transfer of a firearm upon which an 
     action could otherwise be based.
       ``(5) Attorney's fees and punitive damages.--A prevailing 
     plaintiff in an action under this subsection--
       ``(A) shall be awarded reasonable attorney's fees and 
     costs, and
       ``(B) may be awarded punitive damages.
       ``(6) Juveniles.--Paragraph (1)(B) does not apply to--
       ``(A) a temporary transfer of a handgun to a juvenile if 
     the handgun is used by the juvenile--
       ``(i) in the course of employment, in the course of 
     ranching or farming related to activities at the residence of 
     the juvenile (or on property used for ranching or farming at 
     which the juvenile, with the permission of the property owner 
     or lessee, is performing activities related to the operation 
     of the farm or ranch), target practice, hunting, or a course 
     of instruction in the safe and lawful use of a handgun;
       ``(ii) with the prior written consent of the juvenile's 
     parent or guardian who is not prohibited by Federal, State, 
     or local law from possessing a firearm, except--
       ``(I) during transportation by the juvenile of an unloaded 
     handgun in a locked container directly from the place of 
     transfer to a place at which an activity described in clause 
     (i) is to take place and transportation by the juvenile of 
     that handgun, unloaded and in a locked container, directly 
     from the place at which such an activity took place to the 
     transferor; or
       ``(II) with respect to ranching or farming activities as 
     described in clause (i), with the prior written approval of 
     the juvenile's parent or legal guardian and at the direction 
     of an adult who is not prohibited by Federal, State, or local 
     law from possessing a firearm;
       ``(iii) if the juvenile keeps the prior written consent in 
     the juvenile's possession at all times when a handgun is in 
     the possession of the juvenile; and
       ``(iv) in accordance with State and local law;
       ``(B) issuance of a handgun to a juvenile who is a member 
     of the Armed Forces of the United States or the National 
     Guard who possesses or is armed with the handgun in the line 
     of duty;
       ``(C) a transfer by inheritance of title (but not 
     possession) of a handgun to a juvenile;
       ``(D) a delivery of a handgun by a juvenile to be used in 
     defense of the juvenile or other persons against an intruder 
     into the residence of the juvenile or a residence in which 
     the juvenile is an invited guest; or
       ``(E) a transfer of a handgun for consideration if the 
     transfer is made in accordance with State and local law and 
     with the prior consent of the juvenile's parent or legal 
     guardian who is not prohibited by Federal, State, or local 
     law from possessing a firearm.
       ``(7) Rule of construction.--Nothing in this subsection 
     shall be construed to limit or have any other effect on any 
     other cause of action available to any person.''.
       (b) Definition.--Section 921(a) of title 18, United States 
     Code, is amended by adding at the end of the following new 
     paragraph:
       ``(30) The term `juvenile' means a person who is less than 
     18 years of age.''.
       (c) Application of Amendment.--The amendment made by 
     subsection (a) shall apply to damages resulting from a 
     firearm that was transferred as described in section 
     924(j)(1) of title 18, on or after the date of enactment of 
     this Act.
                                 ______


                HARKIN AMENDMENTS NOS. 1892 THROUGH 1894

  (Ordered to lie on the table.)
  Mr. HARKIN submitted three amendments intended to be proposed by him 
to the bill, S. 687, supra; as follows:

                           Amendment No. 1892

       On page 6, line 15, insert before the semicolon ``or loss 
     resulting in maiming, severe physical disfigurement, or 
     permanent disability''.
                                  ____


                           Amendment No. 1893

       On page 7, line 15, insert before the semicolon ``or any 
     tobacco product''.
                                  ____


                           Amendment No. 1894

       On page 5, line 13, insert ``(other than a manufacturer of 
     tobacco products)'' after ``means''.
                                 ______


      DORGAN (AND MOSELEY-BRAUN) AMENDMENTS NOS. 1895 THROUGH 1898

  (Ordered to lie on the table.)
  Mr. DORGAN (for himself and Ms. Moseley-Braun) submitted four 
amendments intended to be proposed by them to the bill, S. 687, supra; 
as follows:

                           Amendment No. 1895

       On page 19, beginning with line 7, strike out all through 
     line 6 on page 22.
                                  ____


                           Amendment No. 1896

       At the appropriate place insert the following:
       Sec.   . Notwithstanding any other provision of this Act, 
     no limitation for the award of punitive damages concerning 
     certain drugs and medical devices or certain aircraft and 
     components, under this Act shall take effect.
                                  ____


                           Amendment No. 1897

       On page 19, beginning with line 7, strike out all through 
     line 16 on page 20.
                                  ____


                           Amendment No. 1898

       On page 20, beginning with line 19, strike out all through 
     line 6 on page 22.
                                 ______


                 McCAIN (AND OTHERS) AMENDMENT NO. 1899

  (Ordered to lie on the table.)
  Mr. McCAIN (for himself, Mr. Lieberman, and Mr. Durenberger) 
submitted an amendment intended to be proposed by them to the bill, S. 
687, supra; as follows:

       At the appropriate place in the bill, insert the following:
       ``Sec.   . Sense of the Senate.--
       Whereas every year millions of Americans depend on the 
     availability of life-saving or life enhancing permanently 
     implantable medical devices;
       Whereas a continued supply of raw materials and component 
     parts is necessary to the invention, development, improvement 
     and maintenance of the supply of such devices;
       Whereas most of these devices are made with raw materials 
     and component parts that are not designed or manufactured 
     specifically for use in implantable devices, but which have 
     uses in a variety of non-medical products as well;
       Whereas small quantities of these raw materials and 
     component parts are used, so that sales of raw materials and 
     component parts for medical devices are an extremely small 
     portion of the overall market for such raw materials;
       Whereas manufacturers of medical devices are required under 
     the Federal Food, Drug and Cosmetics Act to demonstrate that 
     their products are safe and effective, including being 
     properly designed and having adequate warnings or 
     instructions, and existing tort law requires manufacturers of 
     medical devices to ensure they are properly designed and have 
     adequate warnings;
       Whereas, notwithstanding the fact that raw materials and 
     component parts suppliers do not design, produce or test the 
     final implant, they have been sued in cases alleging 
     inadequate design and testing of, or warnings related to use 
     of, permanently implanted medical devices;
       Whereas even though raw materials and component parts 
     suppliers have almost never been held liable in such suits, 
     because the cost of litigating such suits to a favorable 
     judgment exceeds the total potential sales of such raw 
     materials and component parts to the medical device industry, 
     raw materials and component parts suppliers have begun to 
     cease supplying such raw materials and component parts for 
     use in permanently implanted medical devices;
       Whereas the unavailability of raw materials and component 
     parts will, unless alternative sources of supply can be 
     found, lead to unavailability of life-saving and life 
     enhancing medical devices;
       Whereas the prospects for development of new sources of 
     supply for the full range of threatened raw materials and 
     component parts are remote, as other suppliers around the 
     world are refusing to sell raw materials or component parts 
     for use in manufacturing permanently implantable medical 
     devices in the United States, and it is unlikely that such a 
     small market could support the large investment needed to 
     develop new suppliers and attempts to do so will raise the 
     cost of medical devices;
       Whereas courts that have considered the issue have 
     generally found that raw materials and component part 
     suppliers do not have a duty to evaluate the safety and 
     efficacy of the use of a raw material or component part in a 
     medical device, and also do not have a duty to warn 
     concerning the safety and effectiveness of a medical device;
       Whereas attempts to impose such duties will cause more harm 
     than good by driving raw materials and component part 
     suppliers to cease supplying manufacturers of permanently 
     implantable medical devices;
       Whereas immediate action is necessary to ensure the 
     availability of raw materials and component parts for medical 
     devices so that Americans have access to the devices they 
     need;
       Whereas the products liability concerns that are causing 
     the unavailability of raw materials and component parts for 
     medical implants is part of a larger products liability 
     crisis in this country;
       It is the sense of the Senate that prior to the conclusion 
     of the 103rd Congress the Senate should take action to ensure 
     the availability of raw materials and component parts for 
     medical devices by appropriately limiting the liability of 
     suppliers of such materials and parts and providing 
     expeditious procedures to dispose of unwarranted suits 
     against those suppliers.''
                                 ______


                FORD (AND McCONNELL) AMENDMENT NO. 1900

  (Ordered to lie on the table.)
  Mr. FORD (for himself and Mr. McConnell) submitted an amendment 
intended to be proposed by them to the bill, S. 687, supra; as follows:

       At the appropriate place, insert the following:

     SEC.   . UNIFORM STANDARDS FOR INTERSTATE WASTE.

       (a) This section may be cited as the ``Interstate 
     Transportation of Municipal Waste Act of 1994.''
       (b) Interstate Transportation of Municipal Waste.--
       Subtitle D of the Solid Waste Disposal Act (42 U.S.C. 6941 
     et seq.) is amended by adding at the end the following new 
     section:


             ``interstate transportation of municipal waste

       ``Sec. 4011. (a) Authority To Restrict Out-of-State 
     Municipal Waste.--(1)(A) Except as provided in subsection 
     (b), if requested in writing by both an affected local 
     government and an affected local solid waste planning unit, 
     if the local solid waste planning unit exists under State 
     law, a Governor may prohibit the disposal of out-of-State 
     municipal waste in any landfill or incinerator that is 
     subject to the jurisdiction of the Governor or the affected 
     located government.
       ``(B) Prior to submitting a request under this section, the 
     affected local government and solid waste planning unit 
     shall--
       ``(i) provide notice and opportunity for public comment 
     concerning any proposed request; and
       ``(ii) following notice and comment, take formal action on 
     any proposed request at a public meeting.
       ``(2) Beginning with calendar year 1993, a Governor of a 
     State may, with respect to landfills covered by the 
     exceptions provided in subsection (b)--
       ``(A) notwithstanding the absence of a request in writing 
     by the affected local government and the affected local solid 
     waste planning unit, if any,--
       ``(i) limit the quantity of out-of-State municipal waste 
     received for disposal at each landfill in the State to an 
     annual quantity equal to the quantity of out-of-State 
     municipal waste received for disposal at the landfill during 
     the calendar year 1991 or 1992, whichever is less; and
       ``(ii) limit the disposal of out-of-State municipal waste 
     at landfills that received, during calendar year 1991, 
     documented shipments of more than 50,000 tons of out-of-State 
     municipal waste representing more than 30 percent of all 
     municipal waste received at the landfill during the calendar 
     year, by prohibiting at each such landfill the disposal, in 
     any year, of a quantity of out-of-State municipal waste that 
     is greater than 30 percent of all municipal waste received at 
     the landfill during calendar year 1991; and
       ``(B) if requested in writing by the affected local 
     government and the affected local solid waste planning unit, 
     if any, prohibit the disposal of out-of-State municipal waste 
     in landfill cells that do not meet the design and location 
     standards and leachate collection and ground water monitoring 
     requirements of State law and regulations in effect on 
     January 1, 1993, for new landfills.
       ``(3) In addition to the authorities provided in paragraph 
     (1)(A), beginning with calendar year 1997, a Governor of any 
     State, if requested in writing by the affected local 
     government and the affected local solid waste planning unit, 
     if any, may further limit the disposal of out-of-State 
     municipal waste as provided in paragraph (2)(A)(ii) by 
     reducing the 30 percent annual quantity limitation to 20 
     percent in each of calendar years 1998 and 1999, and to 10 
     percent in each succeeding calendar year.
       ``(4)(A) Any limitation imposed by the Governor under 
     paragraph (2)(A)--
       ``(i) shall be applicable throughout the State;
       ``(ii) shall not discriminate against any particular 
     landfill within the State; and
       ``(iii) shall not discriminate against any shipments of 
     out-of-State municipal waste on the basis of State of origin.
       ``(B) In responding to requests by affected local 
     governments under paragraphs (1)(A) and (2)(B), the Governor 
     shall response in a manner that does not discriminate against 
     any particular landfill within the State and does not 
     discriminate against any shipments of out-of-State 
     municipal waste on the basis of State of origin.
       ``(5)(A) Any Governor who intends to exercise the authority 
     provided in this paragraph shall, within 120 days after the 
     date of enactment of this section, submit to the 
     Administrator information documenting the quantity of out-of-
     State municipal waste received for disposal of the State of 
     the Governor during calendar years 1991 and 1992.
       ``(B) On receipt of the information submitted pursuant to 
     subparagraph (A), the Administrator shall notify the Governor 
     of each State and the public and shall provide a comment 
     period of not less than 30 days.
       ``(C) Not later than 60 days after receipt of information 
     from a Governor under subparagraph (A), the Administrator 
     shall determine the quantity of out-of-State municipal waste 
     that was received in each landfill covered by the exceptions 
     provided in subsection (b) for disposal in the State of the 
     Governor during calendar years 1991 and 1992, and provide 
     notice of the determination to the Governor of each State. A 
     determination by the Administrator under this subparagraph 
     shall be final and not subject to judicial review.
       ``(D) Not later than 180 days after the date of enactment 
     of this section, the Administrator shall publish a list of 
     the quantity of out-of-State municipal waste that was 
     received during calendar years 1991 and 1992 at each landfill 
     covered by the exceptions provided in subsection (b) for 
     disposal in each State in which the Governor intends to 
     exercise the authority provided in this paragraph, as 
     determined in accordance with subparagraph (C).
       ``(b) Exceptions To Authority To Prohibit Out-of-State 
     Municipal Waste.--The authority to prohibit the disposal of 
     out-of-State municipal waste provided under subsection (a)(1) 
     shall not apply to--
       ``(1) landfills in operation on the date of enactment of 
     this section that--
       ``(A) received during calendar year 1991 documented 
     shipments of out-of-State municipal waste; and
       ``(B) in compliance with all applicable State laws 
     (including any State rule or regulation) relating to design 
     and location standards, leachate collection, ground water 
     monitoring, and financial assurance for closure and post-
     closure and corrective action;
       ``(2) proposed landfills that, prior to January 1, 1993, 
     received--
       ``(A) an approval from the affected local government to 
     receive municipal waste generated outside the country or the 
     State in which the landfill is located; and
       ``(B) a notice of decision from the State to grant a 
     construction permit; or
       ``(3) incinerators in operation on the date of enactment of 
     this section that--
       ``(A) received, during calendar year 1991, documented 
     shipments of out-of-State waste;
       ``(B) are in compliance with the applicable requirements of 
     section 129 of the Clean Air Act (42 U.S.C. 7429); and
       ``(C) are in compliance with all applicable State laws 
     (including any State rule or regulation) relating to facility 
     design and operations.
       ``(d) Definitions.--As used in this section:
       ``(1)(A) The term `affected local government', with respect 
     to a landfill or incinerator, means the elected officials of 
     the city, town, borough, county, or parish in which the 
     facility is located.
       ``(B) Within 90 days after the date of the enactment of 
     this section, the Governor shall designate which entity 
     listed in subparagraph (A) shall serve as the affected local 
     government for actions taken under this section. If the 
     Governor fails to make a designation, the affected local 
     government shall be the city, town, borough, county, 
     parish, or other public body created pursuant to State law 
     with primary jurisdiction over the land or the use of land 
     on which the facility is located.
       ``(2) The term `affected local solid waste planning unit' 
     means a political subdivision of a State with authority 
     relating to solid waste management planning in accordance 
     with State law.
       ``(3) With respect to a State, the term `out-of-State 
     municipal waste' means municipal waste generated outside of 
     the State. To the extent that it is consistent with the 
     United States-Canada Free Trade Agreement and the General 
     Agreement on Tariffs and Trade, the term shall include 
     municipal waste generated outside of the United States.
       ``(4) The term `municipal waste' means refuse (and refuse-
     derived fuel) generated by the general public or from a 
     residential, commercial, institutional, or industrial source 
     (or my combination thereof), consisting of paper, wood, yard 
     wastes, plastics, leather, rubber, or other combustible or 
     noncombustible materials such as metal or glass (or any 
     combination thereof). The term `municipal waste' does not 
     include--
       ``(A) any solid waste identified or listed as a hazardous 
     waste under section 3001;
       ``(B) any solid waste, including contaminated soil and 
     debris, resulting from a response action taken under section 
     104 or 106 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act (42 U.S.C. 9604 or 9606) or a 
     corrective action taken under this Act;
       ``(C) any metal, pipe, glass, plastic, paper, textile, or 
     other material that has been separated or diverted from 
     municipal waste and has been transported into the State for 
     the purpose of recycling or reclamation;
       ``(D) any solid waste that is--
       ``(i) generated by an industrial facility; and
       ``(ii) transported for the purpose of treatment, storage, 
     or disposal to a facility that is owned or operated by the 
     generator of the waste, or is located on property owned by 
     the generator or a company with which the generator is 
     affiliated;
       ``(E) any solid waste generated incident to the provision 
     of service in interstate, intrastate, foreign, or overseas 
     air transportation;
       ``(F) any industrial waste that is not identical to 
     municipal waste with respect to the physical and chemical 
     state of the industrial waste, and composition, including 
     construction and demolition debris;
       ``(G) any medical waste that is segregated from or not 
     mixed with municipal waste; or
       ``(H) any material or product returned from a dispenser or 
     distributor to the manufacturer for credit, evaluation, or 
     possible reuse.''.
       (c) Table of Contents Amendment.--
       The table of contents of the Solid Waste Disposal Act is 
     amended by adding at the end of the items relating to 
     subtitle D the following new item:

``Sec. 4011. Interstate transportation of municipal waste.''.
                                 ______


              FEINSTEIN (AND LIEBERMAN) AMENDMENT NO. 1901

  (Ordered to lie on the table.)
  Mrs. FEINSTEIN (for herself and Mr. Lieberman) submitted an amendment 
intended to be proposed by them to the bill, S. 687, supra; as follows:

       On page 18, beginning with line 23, strike out through line 
     7 on page 20 and insert the following:
       ``(b) Limitation Concerning Certain Drugs and Medical 
     Devices.--
       ``(1) A manufacturer or product seller of a drug (as 
     defined in section 201(g)(1) of the Federal Food, Drug, and 
     Cosmetic Act; 21 U.S.C. 321(g)(1)) or medical device (as 
     defined in section 201(h) of the Federal Food, Drug, and 
     Cosmetic Act; 21 U.S.C. 321(h)) which caused the claimant's 
     harm has not engaged in conduct manifesting conscious, 
     flagrant indifference to the safety of those persons who 
     might be harmed by the product, and shall not be subject to 
     an award of punitive damages pursuant to this section, 
     where--
       ``(A) such drug or device was subject to pre-market 
     approval by the Food and Drug Administration pursuant to 
     section 505 (as amended by the New Drug Amendments of 1962, 
     P.L. 87-781), 506, 507, 512, or 515 of the Federal Food, 
     Drug, and Cosmetic Act (21 U.S.C. 355, 356, 357, 360b, or 
     360e) or section 351 of the Public Health Service Act (42 
     U.S.C. 262) with respect to the safety of the formulation or 
     performance of the aspect of such drug or device which caused 
     the claimant's harm or the adequacy of the packaging of 
     labeling of such drug or device, and such drug or device was 
     actually approved by the Food and Drug Administration; or
       ``(B) the drug or device is generally recognized as safe 
     and effective pursuant to conditions established by the Food 
     and Drug Administration and applicable regulations, including 
     packaging and labeling regulations.
       ``(2) The provisions of paragraph (1) shall not apply in 
     any case in which the claimant proves by a preponderance of 
     evidence that--
       ``(A)(i) the defendant, before or after pre-market approval 
     of a drug or device, failed to submit or misrepresented to 
     the Food and Drug Administration or any other agency or 
     official of the Federal government required information, 
     including required information regarding any death or other 
     adverse experience associated with use of the drug or device, 
     and (ii) the information that defendant failed to submit or 
     misrepresented is material and relevant to the performance of 
     such drug or device and is causally related to the harm which 
     the claimant allegedly suffered; or
       ``(B) the defendant made an illegal payment to an official 
     of the Food and Drug Administration for the purpose of either 
     securing or maintaining approval of such drug or device; or
       ``(C) the Food and Drug Administration has determined in a 
     formal administrative proceeding (by a final order not 
     subject to further review) or a court has determined in an 
     action brought by the United States (by a final judgment not 
     subject to further review) that the drug or device failed to 
     conform to conditions of the Food and Drug Administration for 
     approval (except for changes permitted without prior approval 
     under applicable law, including Food and Drug Administration 
     regulations), and such failure is causally related to the 
     harm which the claimant allegedly suffered.
       ``(3) The provisions of paragraph (1) shall not apply with 
     respect to a claim for punitive damages based on a defect in 
     manufacturing which causes the drug or device to depart from 
     its intended design.''
                                 ______


                      LIEBERMAN AMENDMENT NO. 1902

  (Ordered to lie on the table.)
  Mr. LIEBERMAN submitted an amendment intended to be proposed by him 
to the bill, S. 687, supra; as follows:

       On page 18, beginning with line 23, strike out through line 
     7 on page 20 and insert the following:
       ``(b) Limitation Concerning Certain Drugs and Medical 
     Devices.--
       ``(1) A manufacturer or product seller of a drug (as 
     defined in section 201 (g) (1) of the Federal Food, Drug, and 
     Cosmetic Act; 21 U.S.C 321 (g) (1)) or medical device (as 
     defined in section 201(h) of the Federal Food, Drug, and 
     Cosmetic Act; 21 U.S.C. 321(h)) which caused the claimant's 
     harm has not engaged in conduct manifesting conscious, 
     flagrant indifference to the safety of those persons who 
     might be harmed by the product, and shall not be subject to 
     an award of punitive damages pursuant to this section, 
     where--
       ``(A) such drug or device was subject to pre-market 
     approval by the Food and Drug Administration pursuant to 
     section 505 (as amended by the New Drug Amendments of 1962, 
     P.L. 87-781), 506, 507, 512, or 515 of the Federal Food, 
     Drug, and Cosmetic Act (21 U.S.C. 355, 356, 357, 360b, or 
     360e) or section 351 of the Public Health Service Act (42 
     U.S.C. 262) with respect to the safety of the formulation or 
     performance of the aspect of such drug or device which caused 
     the claimant's harm or the adequacy of the packaging of 
     labeling of such drug or device, and such drug or device was 
     actually approved by the Food and Drug Administration; or
       ``(B) the drug or device is generally recognized as safe 
     and effective pursuant to conditions established by the Food 
     and Drug Administration and applicable regulations, including 
     packaging and labeling regulations.
       ``(2) The provisions of paragraph (1) shall not apply in 
     any case in which the claimant proves by a preponderance of 
     evidence that--
       ``(A)(i) the defendant, before or after pre-market approval 
     of a drug or device, failed to submit or misrepresented to 
     the Food and Drug Administration or any other agency or 
     official of the Federal government required information, 
     including required information regarding any death or another 
     adverse experience associated with use of the drug or device, 
     and (ii) the information that defendant failed to submit or 
     misrepresented is material and relevant to the performance of 
     such drug or device and is causally related to the harm which 
     the claimant allegedly suffered; or
       ``(B) the defendant made an illegal payment to an official 
     of the Food and Drug Administration for the purpose of either 
     securing or maintaining approval of such drug or device; or
       ``(C) the Food and Drug Administration has determined in a 
     formal administrative proceeding (by a final order not 
     subject to further review) or a court has determined in an 
     action brought by the United States (by a final judgement not 
     subject to further review) that the drug or device failed to 
     conform to conditions of the Food and Drug Administration for 
     approval (except for changes permitted without prior approval 
     under applicable law, including Food and Drug Administration 
     regulations), and such failure is causally related to the 
     harm which the claimant allegedly suffered.
       ``(3) The provisions of paragraph (1) shall not apply with 
     respect to a claim for punitive damages based on a defect in 
     manufacturing which causes the drug or device to depart from 
     its intended design.''
                                 ______


              McCONNELL AMENDMENTS NOS. 1903 THROUGH 1904

  (Ordered to lie on the table.)
  Mr. McCONNELL submitted two amendments intended to be proposed by him 
to the bill, S. 687, supra; as follows:

                           Amendment No. 1903

       At the end of the bill, add the following new section:

     SEC.   . LITIGATION IMPACT STATEMENT.

       Paragraph 11 of rule XXVI of the Standing Rules of the 
     Senate is amended by--
       (1) in subparagraph (c), by striking ``paragraphs (a) and 
     (b)'' and inserting ``paragraphs (a), (b), and (c)'';
       (2) by redesignating subparagraph (c) as subparagraph (d); 
     and
       (3) by adding after subparagraph (b) the following:
       ``(c) Each such report (except those by the Committee on 
     Appropriations) shall also contain a litigation impact 
     evaluation made by such committee which shall include--
       ``(1) an estimate of any increase in litigation which would 
     result from the enactment of the bill or joint resolution;
       ``(2) an estimate of any increase in private liability 
     which would result from the enactment of the bill or joint 
     resolution; and
       ``(3) an estimate of any increase in liability insurance 
     costs which would result from the enactment of the bill or 
     joint resolution.''.
                                  ____


                           Amendment No. 1904

       At the appropriate place, insert the following:

     SEC. ____. INTERSTATE TRANSPORTATION OF MUNICIPAL WASTE.

       (a) In General.--Subtitle D of the Solid Waste Disposal Act 
     (42 U.S.C. 6941 et seq.) is amended by adding at the end the 
     following new section:


             ``interstate transportation of municipal waste

       ``Sec. 4011. (a) Authority To Restrict Out-of-State 
     Municipal Waste.--If requested in writing by an affected 
     local government, and by an affected local solid waste 
     planning unit if the local solid waste planning unit exists 
     under State law, a Governor may prohibit the disposal of out-
     of-State municipal waste in any landfill or incinerator that 
     is subject to the jurisdiction of the Governor or the 
     affected local government.
       ``(b) Definitions.--As used in this section:
       ``(1)(A) The term `affected local government', used with 
     respect to a landfill or incinerator, means the elected 
     officials of the city, town, borough, county, or parish in 
     which the facility is located.
       ``(B) Within 90 days after the date of enactment of this 
     section, the Governor shall designate which entity listed in 
     subparagraph (A) shall serve as the affected local government 
     for actions taken under this section. If the Governor fails 
     to make a designation, the affected local government shall be 
     the city, town, borough, county, parish, or other public body 
     created pursuant to State law, with primary jurisdiction over 
     the land or the use of land on which the facility is located.
       ``(2) The term `affected local solid waste planning unit' 
     means a political subdivision of a State with authority 
     relating to solid waste management planning in accordance 
     with State law.
       ``(3) The term `municipal waste' means refuse (and refuse-
     derived fuel) generated by the general public or from a 
     residential, commercial, institutional, or industrial source 
     (or any combination thereof), consisting of paper, wood, yard 
     wastes, plastics, leather, rubber, or other combustible or 
     noncombustible materials such as metal or glass (or any 
     combination thereof). The term `municipal waste' does not 
     include--
       ``(A) any solid waste identified or listed as a hazardous 
     waste under section 3001;
       ``(B) any solid waste, including contaminated soil and 
     debris, resulting from a response action taken under section 
     104 or 106 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9604 or 
     9606) or a corrective action taken under this Act;
       ``(C) any metal, pipe, glass, plastic, paper, textile, or 
     other material that has been separated or diverted from 
     municipal waste (as otherwise defined in this paragraph) and 
     has been transported into a State for the purpose of 
     recycling or reclamation;
       ``(D) any solid waste that is--
       ``(i) generated by an industrial facility; and
       ``(ii) transported for the purpose of treatment, storage, 
     or disposal to a facility that is owned or operated by the 
     generator of the waste, or is located on property owned by 
     the generator or a company with which the generator is 
     affiliated;
       ``(E) any solid waste generated incident to the provision 
     of service in interstate, intrastate, foreign, or overseas 
     air transportation;
       ``(F) any industrial waste that is not identical to 
     municipal waste (as otherwise defined in this paragraph) with 
     respect to the physical and chemical state of the industrial 
     waste, and composition, including construction and demolition 
     debris;
       ``(G) any medical waste that is segregated from or not 
     mixed with municipal waste (as otherwise defined in this 
     paragraph); or
       ``(H) any material or product returned from a dispenser or 
     distributor to the manufacturer for credit, evaluation, or 
     possible reuse.
       ``(4) The term `out-of-State municipal waste', used with 
     respect to a State, means municipal waste generated outside 
     of the State. To the extent that it is consistent with the 
     United States-Canada Free-Trade Agreement and the General 
     Agreement on Tariffs and Trade to so define the term, the 
     term shall include municipal waste generated outside of the 
     United States.''.
       (b) Table of Contents Amendment.--The table of contents in 
     section 1001 of the Solid Waste Disposal Act (42 U.S.C. prec. 
     6901) is amended by adding at the end of the items relating 
     to subtitle D the following new item:

``Sec. 4011. Interstate transportation of municipal waste.''.
                                 ______


                KERREY AMENDMENT NOS. 1905 THROUGH 1906

  (Ordered to lie on the table)
  Mr. KERREY submitted two amendments intended to be proposed by him to 
the bill, S. 687, supra; as follows:

                           Amendment No. 1095

       On page 18, line 20, beginning with the comma strike out 
     all through the comma on line 21.

                           Amendment No. 1096

                                  ____

       On page 24, insert between lines 16 and 17 the following 
     paragraph:
       (3) No State statute of repose shall apply to any civil 
     action subject to this Act.
                                 ______


                 KOHL AMENDMENTS NOS. 1907 THROUGH 1908

  (Ordered to lie on the table.)
  Mr. KOHL submitted two amendments intended to be proposed by him to 
the bill, S. 687, supra; as follows:

                           Amendment No. 1907

       Section 4(a) is amended as follows:
       Strike the period concluding the first sentence and add at 
     the end of the sentence, ``but only those civil actions in 
     which the provisions of paragraphs (1) and (2) have been 
     satisfied.''
       Then add the following:
       (1)(A) In any civil action brought pursuant to this Act, a 
     court shall enter an order under applicable State or Federal 
     rules of civil procedure restricting the disclosure of 
     information obtained through discovery or an order 
     restricting access to court records in a civil case only 
     after making particularized findings of facts that--
       (i) such order would not restrict disclosure of information 
     which is relevant to the protection of public health or 
     safety; or
       (ii) the public interest in disclosure of potential health 
     or safety hazards is clearly outweighed by a specific and 
     substantial interest in maintaining the confidentiality of 
     the information or records in question; and the requested 
     protective order is no broader than necessary to protect the 
     privacy interest asserted.
       (B) No order entered in accordance with the provisions of 
     paragraph (1) shall continue in effect after the entry of 
     final judgment, unless at or after such entry the court makes 
     a separate particularized finding of fact that the terms of 
     paragraph (1)(A)(i) or (ii) have been met.
       (C) The party who is the proponent for the entry of an 
     order, as provided under this section, shall have the burden 
     of proof in obtaining such an order.
       (2)(A) No agreement between or among parties in a civil 
     action pursuant to this Act filed in a State court or court 
     of the United States may contain a provision that prohibits 
     or otherwise restricts a party from disclosing any 
     information relevant to such civil action to any Federal or 
     State agency with authority to enforce laws regulating an 
     activity relating to such information.
       (B) Any disclosure of information to a Federal or State 
     agency as described under paragraph (1) shall be confidential 
     to the extent provided by law.
                                  ____


                           Amendment No. 1908

       Section 4(a) is amended as follows:
       Strike the period concluding the first sentence and add at 
     the end of the sentence, ``but only those civil actions in 
     which the provisions of paragraph (1) have been satisfied.''
       Then add the following:
       (1)(A) No agreement between or among parties in a civil 
     action pursuant to this Act filed in a State court or court 
     of the United States may contain a provision that prohibits 
     or otherwise restricts a party from disclosing any 
     information relevant to such civil action to any Federal or 
     State agency with authority to enforce laws regulating an 
     activity relating to such information.
       (B) Any disclosure of information to a Federal or State 
     agency as described under paragraph (1) shall be confidential 
     to the extent provided by law.
                                 ______


                       HEFLIN AMENDMENT NO. 1909

  (Ordered to lie on the table.)
  Mr. HEFLIN submitted an amendment intended to be proposed by him to 
the bill, S. 687, supra; as follows:

       At the appropriate place insert the following:

     SEC.   . LIABILITY FOR CERTAIN CLAIMS RELATING TO DEATH.

       In any civil action in which the alleged harm to the 
     claimant is death and the applicable State law provides, or 
     has been construed to provide, for damages only punitive in 
     nature, a defendant may be liable for any such damages 
     regardless of whether a claim is asserted under this section. 
     The recovery of any such damages shall not bar a claim under 
     this section.
                                 ______


              METZENBAUM AMENDMENTS NOS. 1910 THROUGH 1922

  (Ordered to lie on the table.)
  Mr. METZENBAUM submitted 13 amendments intended to be proposed by him 
to the bill, S. 687, supra; as follows:

                           Amendment No. 1910

       At the appropriate place add the following new title:

                TITLE   --REGULATION OF TOBACCO PRODUCTS

     SEC.   . REGULATION OF TOBACCO PRODUCTS.

       (a) Authority.--The Secretary of Health and Human Services 
     shall issue regulations for products containing tobacco to 
     protect children and teenagers from the harmful consequences 
     of tobacco use and to protect the public health.
       (b) Content.--Regulations under subsection (a) may regulate 
     the manufacture, introduction or delivery for introduction 
     into interstate commerce, distribution, sale, labeling, 
     advertising, promotion, and content of products containing 
     tobacco, except that no such regulation may ban all sales of 
     cigarettes or other products containing tobacco. Any person 
     subject to such regulations shall at all reasonable times 
     permit an officer or employee duly designated by the 
     Secretary access to their places of business (including 
     research facilities and facilities of persons under contract) 
     and provide an opportunity to inspect their facilities, 
     inventories, and records and to copy any records and take any 
     samples necessary to enforce such regulations.
       (c) Enforcement.--The manufacture (including actions 
     respecting the content of products containing tobacco), 
     introduction or delivery for introduction into interstate 
     commerce, distribution sale, labeling, advertising, or 
     promotion of products containing tobacco in violation of 
     regulations issued under subsection (a) or the failure to 
     make any report required under such regulations shall be 
     considered to be a violation of a prohibited act under 
     section 301 of the Federal Food, Drug, and Cosmetic Act. In 
     any action brought to enforce such regulations, the 
     connection with interstate commerce required for jurisdiction 
     in such action shall be presumed to exist.
       (d) Construction.--This section shall not be construed as 
     limiting the authority of the Secretary under the Federal 
     Food, Drug, and Cosmetic Act over products containing tobacco 
     which the Secretary has without the enactment of this 
     section.
                                  ____


                           Amendment No. 1911

       At the appropriate place add the following:

                           TITLE   --FIREARMS

     SEC.  . CIVIL LIABILITY FOR VIOLATION OF FIREARM LAW.

       Section 924 of title 18, United States Code, is amended by 
     adding at the end of the following new subsection:
       ``(i)(1) A licensed manufacturer, licensed importer, or 
     licensed dealer who sells, delivers, or otherwise transfers 
     or who imports any firearms or ammunition in violation of 
     Federal law shall be liable for all damages proximately 
     caused by such sale, delivery, or other transfer or 
     importation.
       ``(2) An action to recover damages under paragraph (1) may 
     be brought in a United States district court by, or on behalf 
     of, any person, or the estate of any person, who suffers 
     bodily injury or death as a result of the discharge of a 
     firearm or ammunition sold, delivered, or transferred in 
     violation of Federal law. A prevailing plaintiff in such an 
     action shall be awarded costs and a reasonable attorney's 
     fees. Punitive damages shall be recoverable by the plaintiff 
     if the defendant is found to have intentionally or recklessly 
     violated the law.
       ``(3) No action under paragraph (2) may be brought by or on 
     behalf of a person who was engaged in a criminal act against 
     the person or property of another person at the time of the 
     injury.
       ``(4) Nothing in this subsection shall be construed to 
     preempt or otherwise limit any other cause of action 
     available to any person.''.
                                  ____


                           Amendment No. 1912

       On page 9, at the end of line 2 insert: ``A civil action 
     brought against a manufacturer or product seller is not 
     subject to this Act if--
       ``(1) there is an agreement between or among parties that 
     contains a provision that prohibits or otherwise restricts a 
     party from disclosing any information relevant to the civil 
     action to any Federal or State agency with authority to 
     enforce laws regulating an activity; or
       ``(2) a court enters an order restricting the disclosure of 
     information obtained through discovery or an order 
     restricting access to court records, without making 
     particularized findings of fact that--
       ``(A) such order would not restrict the disclosure of 
     information which is relevant to the protection of public 
     health or safety; or
       ``(B)(i) the public interest in disclosure of potential 
     health or safety hazards is clearly outweighed by a specific 
     and substantial interest in maintaining the confidentiality 
     of the information or records in question; and
       ``(ii) there exists no less restrictive means than the 
     requested protective order of adequately and effectively 
     protecting the specific interest asserted.''.
                                  ____


                           Amendment No. 1913

       At the appropriate place insert the following:
       Sec.   . Notwithstanding any other provision of this Act, a 
     civil action brought against a manufacturer or product seller 
     is not subject to this Act if--
       (1) there is an agreement between or among parties that 
     contains a provision that prohibits or otherwise restricts a 
     party from disclosing any information relevant to the civil 
     action to any Federal or State agency with authority to 
     enforce laws regulating an activity; or
       (2) a court enters an order restricting the disclosure of 
     information obtained through discovery or an order 
     restricting access to court records, without making 
     particularized findings of fact that--
       (A) such order would not restrict the disclosure of 
     information which is relevant to the protection of public 
     health or safety; or
       (B)(i) the public interest in disclosure of potential 
     health or safety hazards is clearly outweighed by a specific 
     and substantial interest in maintaining the confidentiality 
     of the information or records in question; and
       (ii) there exists no less restrictive means than the 
     requested protective order of adequately and effectively 
     protecting the specific interest asserted.
                                  ____


                           Amendment No. 1914

       At the appropriate place add the following:

                           TITLE   --FIREARMS

     SEC.   . FIREARMS AND CHILD SAFETY.

       (a) Unlawful Act.--Section 924 of title 18, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(i)(1) A person that manufacturers, sells, delivers, or 
     otherwise transfers a firearm that does not have as an 
     integral part a device or devices specified in paragraph (5) 
     shall be liable for all damages proximately caused by the 
     firearm.
       ``(2) An action to recover damages under paragraph (1) may 
     be brought in United States district court by, or on behalf 
     of, any person, or the estate of any person, who suffers 
     bodily injury or death as a result of the discharge of a 
     firearm manufactured, sold, delivered, or transferred in 
     violation of paragraph (1). Prevailing plaintiffs in such 
     actions shall be awarded costs and reasonable attorneys' 
     fees. Punitive damages shall be recoverable by the plaintiff 
     if the defendant is found to have intentionally or recklessly 
     violated the law.
       ``(3) No action under paragraph (2) may be brought by, or 
     on behalf of, a person who was engaged in a criminal act 
     against the person or property of another person at the time 
     of the injury.
       ``(4) Nothing in this subsection shall be construed to 
     preempt, or otherwise limit, any other cause of action 
     available to any person.
       ``(5) For purposes of this section, the term `childproof 
     safety devices' shall mean a device or devices that--
       ``(A) prevent a child of less than 7 years of age from 
     discharging the firearm by reason of the amount of strength, 
     dexterity, cognitive skill, or other ability required to 
     cause a discharge;
       ``(B) prevent a firearm that has a removable magazine from 
     discharging when the magazine has been removed; and
       ``(C) in the case of a handgun other than a revolver, 
     clearly indicate whether the magazine or chamber contains a 
     round of ammunition.''.
       (b) Effective Date.--This section shall take effect 6 
     months after the date of the enactment of this Act.
                                  ____


                           Amendment No. 1915

       On page 23, insert between lines 17 and 18 the following 
     new subsection:
       (f) Nonapplicability to certain civil actions.--This 
     section shall not apply to a civil section if--
       (1) there is an agreement between or among parties that 
     contains a provision that prohibits or otherwise restricts a 
     party from disclosing any information relevant to the civil 
     action to any Federal or State agency with authority to 
     enforce laws regulating an activity relating to such 
     information, or
       (2) a court enters an order restricting the disclosure of 
     information obtained through discovery or an order 
     restricting access to court records, without making 
     particularized findings of fact that--
       (A) such order would not restrict the disclosure of 
     information which is relevant to the protection of public 
     health or safety; or
       (B)(i) the public interest in disclosure of potential 
     health or safety hazards is clearly outweighed by a specific 
     and substantial interest in maintaining the confidentiality 
     of the information or records in question; and
       (ii) there exists no less restrictive means than the 
     requested protective order of adequately and effectively 
     protecting the specific interest asserted.
                                  ____


                           Amendment No. 1916

       At the appropriate place insert the following:
       Sec.   . Notwithstanding any other provision of this Act, 
     no provision of this Act relating to uniform standards for 
     the award of punitive damages shall apply to a civil action 
     if--
       (1) there is an agreement between or among parties that 
     contains a provision that prohibits or otherwise restricts a 
     party from disclosing any information relevant to the civil 
     action to any Federal or State agency with authority to 
     enforce laws regulating an activity relating to such 
     information, or
       (2) a court enters an order restricting the disclosure of 
     information obtained through discovery or an order 
     restricting access to court records, without making 
     particularized finding of fact that--
       (A) such order would not restrict the disclosure of 
     information which is relevant to the protection of public 
     health or safety; or
       (B)(i) the public interest in disclosure of potential 
     health or safety hazards is clearly outweighed by a specific 
     and substantial interest in maintaining the confidentiality 
     of the information or records in question; and
       (ii) there exists no less restrictive means than the 
     requested protective order of adequately and effectively 
     protecting the specific interest asserted.
                                  ____


                           Amendment No. 1917

       On page 31, at the end of line 9, insert ``This subsection 
     shall not apply--
       ``(1) with respect to any defendant who enters into an 
     agreement between or among parties that contains a provision 
     that prohibits or otherwise restricts a party from disclosing 
     any information relevant to the civil action to any Federal 
     or State agency with authority to enforce laws regulating an 
     activity relating to such information; or
       ``(2) if a court enters an order restricting the disclosure 
     of information obtained through discovery or an order 
     restricting access to court records, without making 
     particularized findings of fact that--
       ``(A) such order would not restrict the disclosure of 
     information which is relevant to the protection of public 
     health or safety; or
       ``(B)(i) the public interest in disclosure of potential 
     health or safety hazards is clearly outweighed by a specific 
     and substantial interest in maintaining the confidentiality 
     of the information or records in question; and
       ``(ii) there exists no less restrictive means than the 
     requested protective order of adequately and effectively 
     protecting the specific interest asserted.''.
                                  ____


                           Amendment No. 1918

       At the appropriate place insert the following:
       Sec.   . Notwithstanding any provision of this Act, no 
     provision of this Act relating to several liability for 
     noneconomic loss allocated to a defendant in direct 
     proportion to such defendant's percentage of responsibility 
     shall apply--
       (1) with respect to any defendant who enters into an 
     agreement between or among parties that contains a provision 
     that prohibits or otherwise restricts a party from disclosing 
     any information relevant to the civil action to any Federal 
     or State agency with authority to enforce laws regulating an 
     activity relating to such information; or
       (2) if a court enters an order restricting the disclosure 
     of information obtained through discovery or an order 
     restricting access to court records, without making 
     particularized findings of fact that--
       (A) such order would not restrict the disclosure of 
     information which is relevant to the protection of public 
     health or safety; or
       (B)(i) the public interest in disclosure of potential 
     health or safety hazards is clearly outweighed by a specific 
     and substantial interest in maintaining the confidentiality 
     of the information or records in question; and
       (ii) there exists no less restrictive means than the 
     requested protective order of adequately and effectively 
     protecting the specific interest asserted.
                                  ____


                           Amendment No. 1919

       On page 9, at the end of line 2 insert ``In any civil 
     action brought against a manufacturer or product seller, on 
     any theory, for harm caused by a product--
       ``(1) there shall be no agreement between or among parties 
     that contains a provision that prohibits or otherwise 
     restricts a party from disclosing any information relevant to 
     the civil action to any Federal or State agency with 
     authority to enforce laws regulating an activity; and
       ``(2) a court, if otherwise authorized to issue an order 
     restricting the disclosure of information obtained through 
     discovery or an order restricting access to court records, 
     shall enter such an order only after making particularized 
     findings of fact that--
       ``(A) such order would not restrict the disclosure of 
     information that is relevant to the protection of the health 
     or safety of the public; or
       ``(B)(i) the public interest is disclosure of potential 
     health or safety hazards is clearly out-weighted by a 
     specific and substantial interest in maintaining the 
     confidentiality of the information or records in question; 
     and
       ``(ii) there exists no less restrictive means than the 
     requested protective order of adequately and effectively 
     protecting the specific interest asserted.''.
                                  ____


                           Amendment No. 1920

       At the appropriate place insert the following:
       Sec.   . Notwithstanding any other provision of this Act, 
     in any civil action brought against a manufacturer or product 
     seller, on any theory, for harm caused by a product--
       ``(1) there shall be no agreement between or among parties 
     that contains a provision that prohibits or otherwise 
     restricts a party from disclosing any information relevant to 
     the civil action to any Federal or State agency with 
     authority to enforce laws regulating an activity; and
       ``(2) a court, if otherwise authorized to issue an order 
     restricting the disclosure of information obtained through 
     discovery or an order restricting access to court records, 
     shall enter such a order only after making particularized 
     findings of fact that--
       ``(A) such an order would not restrict the disclosure of 
     information that is relevant to the protection of the health 
     or safety of the public; or
       ``(B)(i) the public interest is disclosure of potential 
     health or safety hazards is clearly out-weighed by a specific 
     and substantial interest in maintaining the confidentiality 
     of the information or records in question; and
       ``(ii) there exists no less restrictive means than the 
     requested protective order of adequately and effectively 
     protecting the specific interest asserted.
                                  ____


                           Amendment No. 1921

       At the appropriate place, add the following:

     SEC.   . UNIFORM STANDARDS FOR PROTECTIVE ORDERS AND SEALING 
                   OF COURT RECORDS.

       In any civil action brought against a manufacturer or 
     product seller, on any theory, for harm caused by a product--
       (1) there shall be no agreement between or among parties 
     that contains a provision that prohibits or otherwise 
     restricts a party from disclosing any information relevant to 
     the civil action to any Federal or State agency with 
     authority to enforce laws regulating an activity; and
       (2) a court, if otherwise authorized to issue an order 
     restricting the disclosure of information obtained through 
     discovery or an order restricting access to court records, 
     shall enter such an order only after making particularized 
     findings of fact that--
       (A) such an order would not restrict the disclosure of 
     information that is relevant to the protection of the health 
     or safety of the public; or
       (B)(i) the public interest in disclosure of potential 
     health or safety hazards is clearly outweighed by a specific 
     and substantial interest in maintaining the confidentiality 
     of the information or records in question; and
       (ii) there exists no less restrictive means than the 
     requested protective order of adequately and effectively 
     protecting the specific interest asserted.
                                  ____


                           Amendment No. 1922

       At the appropriate place add the following new title:

  TITLE  --REIMBURSEMENT OF PAYMENTS MADE FOR TOBACCO-CAUSED ILLNESS, 
                            INJURY, OR DEATH

     SEC.   . REIMBURSEMENT OF PAYMENTS MADE FOR TOBACCO-CAUSED 
                   ILLNESS, INJURY, OR DEATH.

       (a) Jurisdiction.--
       (1) The Federal Government or any department or agency 
     thereof or any State or political subdivision, department, or 
     agency thereof, may bring an action in any United States 
     District Court against a manufacturer of cigarettes to 
     recover reimbursement for the full amount of medical 
     assistance provided by medicare or medicaid under titles 
     XVIII or XIX of the Social Security Act on behalf of a 
     recipient for illness, injury, or death that may have been 
     caused by cigarette smoking.
       (2) In the event that medical assistance has been provided 
     to more than one recipient, and the government elects to seek 
     recovery from cigarette manufacturers due to actions by the 
     manufacturers or circumstances which involve common issues of 
     fact or law, an action may be brought under paragraph (1) to 
     recover sums paid to all such recipients in one proceeding.
       (b) Cause of Action for Reimbursement.--
       (1) In an action under subsection (a), a manufacturer of 
     cigarettes shall be held strictly liable in tort for medicare 
     and medicaid expenditures arising from illness, injury, or 
     death caused by cigarette smoking, to the limit of legal 
     liability up to the amount of medical assistance paid by 
     medicare or medicaid.
       (2) The Federal Rules of Evidence and principles of common 
     law and equity shall be broadly construed to ensure full 
     reimbursement. Issues of causation and aggregate damages may 
     be proven by use of statistical analysis and epidemiological 
     estimates. Recovery against cigarette manufacturers may be 
     sought under a market share theory. Where joinder or 
     identification of each claim is impacticable, recovery may be 
     sought based upon payments made on behalf of an entire class 
     of recipients.
       (3) An action under subsection (a) is independent of any 
     rights or causes of action of a recipient and no action of a 
     recipient shall prejudice or impair an action for 
     reimbursement under subsection (a).
       (c) Distribution of Recovery.--Any recovery in an action 
     under subsection (a) shall be distributed to the Federal and 
     State governments in accordance with the Federal and State 
     shares of the expenditures.
                                 ______


               SPECTER AMENDMENTS NOS. 1923 THROUGH 1926

  (Ordered to lie on the table.)
  Mr. SPECTER submitted four amendments intended to be proposed by him 
to the bill, S. 687, supra; as follows:

                           Amendment No. 1923

       On page 23, beginning on line 23, strike out ``unless the 
     complaint'' and all that follows through the period and 
     insert in lieu thereof ``unless the harm occurs within the 
     longer of (A) the 25-year period beginning on the date of the 
     delivery of the product, or (B) the period of the useful life 
     of the product as expressly defined by the manufacturer, 
     whichever is longer.''
                                  ____


                           Amendment No. 1924

       On page 31, between lines 4 and 5, insert the following:
       (c) Exemptions.--Notwithstanding subsection (a), liability 
     for noneconomic loss shall be joint and several in any action 
     subject to this Act in which the plaintiff has suffered 
     blindness, deafness, brain injury paralysis, disfigurement, 
     or loss of a limb.
                                  ____


                           Amendment No. 1925

       On page 23, between lines 8 and 9, insert the following:
       (f) Discovery From Approving or Certifying Agency.--(1) 
     Subject to paragraph (2), the claimant or the defendant in 
     any action in which the defendant asserts a limitation on the 
     award of punitive damages under subsection (b) or (c) may 
     obtain discovery from the Food and Drug Administration or the 
     Federal Aviation Administration, as the case may be, of any 
     evidence under the jurisdiction of the agency relating to 
     such assertion.
       (2) A court may make an order with respect to discovery 
     authorized under paragraph (1) that a trade secret or other 
     confidential research, development, or commercial information 
     not be disclosed or be disclosed only in a designated way.
                                  ____


                           Amendment No. 1926

       On page 32, below line 12, add the following:
       (e) Applicability of Defenses to Certain Defects and 
     Crashworthiness Claims.--(1) The defense set forth in 
     subsection (a) shall not be available to a defendant referred 
     to in that subsection if the claimant proves by clear and 
     convincing evidence that the claimant harm's in the accident 
     or event was greater than it would otherwise have been by 
     reason of a defect in the product concerned.
                                 ______


                      FEINSTEIN AMENDMENT NO. 1927

  (Ordered to lie on the table.)
  Mrs. FEINSTEIN submitted an amendment intended to be proposed by her 
to the bill, S. 687, supra; as follows:

       (a) Any corporation, or person who is a manager with 
     respect to a product, facility, equipment, process, place of 
     employment, or business practice, is guilty of a criminal 
     offense punishable by imprisonment for a term not exceeding 
     three years, or by a fine not exceeding twenty-five thousand 
     dollars ($25,000), or by both that fine and imprisonment; but 
     if the defendant is a corporation the fine shall not exceed 
     one million dollars ($1,000,000), if that corporation or 
     person does all of the following:
       (1) Has actual knowledge of a serious concealed danger that 
     is subject to the regulatory authority of a state or federal 
     agency and is associated with that product or a component of 
     that product or business practice.
       (2) Knowingly fails during the period ending 15 days after 
     the actual knowledge is acquired, or if there is imminent 
     risk of great bodily harm or death, immediately, to do both 
     of the following:
       (A) Inform the appropriate government agency in writing, 
     unless the corporation or manager has actual knowledge that 
     the division has been so informed.
       Where the concealed danger reported pursuant to this 
     paragraph is subject to the regulatory authority of an agency 
     other than the agency to which it was reported, it shall be 
     the responsibility of the agency which has received the 
     information, within 24 hours of receipt of the information, 
     to telephonically notify the appropriate government agency of 
     the hazard, and promptly forward any written notification 
     received.
       (B) Warn its affected employees in writing, unless the 
     corporation or manager has actual knowledge that the 
     employees have been so warned.
       The requirement for disclosure is not applicable if the 
     hazard is abated within the time prescribed for reporting, 
     unless the appropriate regulatory agency nonetheless requires 
     disclosure by regulation.
       Where the appropriate government agency was not notified, 
     but the corporation or manager reasonably and in good faith 
     believed that they were complying with the notification 
     requirements of this section by notifying another government 
     agency, as listed in paragraph (B), no penalties shall apply.
       (b) As used in this section:
       (1) ``Manager'' means a person having both of the 
     following:
       (A) Management authority in or as a business entity.
       (B) Significant responsibility for any aspect of a business 
     which includes actual authority for the safety of a product 
     or business practice or for the conduct of research or 
     testing in connection with a product or business practice.
       (2) ``Product'' means an article of trade or commerce or 
     other item of merchandise which is a tangible or an 
     intangible good, and includes services.
       (3) ``Actual knowledge,'' used with respect to a seriously 
     concealed danger, means has information that would convince a 
     reasonable person in the circumstances in which the manager 
     is situated that the serious concealed danger exists.
       (4) ``Serious concealed danger,'' used with respect to a 
     product or business practice, means that the normal or 
     reasonably foreseeable use of, or the exposure of an 
     individual to, the product or business practice creates a 
     substantial probability of death, great bodily harm, or 
     serious exposure to an individual, and the danger is not 
     readily apparent to an individual who is likely to be 
     exposed.
       (5) ``Great bodily harm'' means a significant or 
     substantial physical injury.
       (6) ``Serious exposure'' means any exposure to a hazardous 
     substance, when the exposure occurs as a result of an 
     incident or exposure over time and to a degree or in an 
     amount sufficient to create a substantial probability that 
     death or great bodily harm in the future would result from 
     the exposure.
       (7) ``Warn its affected employees'' means give sufficient 
     description of the serious concealed danger to all 
     individuals working for or in the business entity who are 
     likely to be subject to the serious concealed danger in the 
     course of that work to make those individuals aware of that 
     danger.
       (8) ``Appropriate government agency'' means any state or 
     federal agency, including but not limited to those on the 
     following list, that has regulatory authority with respect to 
     the product or business practice and serious concealed 
     dangers of the sort discovered:
       (A) The Federal Occupational Safety and Health 
     Administration.
       (B) The U.S. Department of Health and Human Services.
       (C) The U.S. Department of Agriculture.
       (D) The U.S. Consumer Product Safety Commission.
       (E) The United States Food and Drug Administration.
       (F) The United States Environmental Protection Agency.
       (G) The National Highway Traffic Safety Administration.
       (H) The Federal Trade Commission.
       (I) The Nuclear Regulatory Commission.
       (J) The Federal Aviation Administration.
       (K) The Federal Mine Safety and Health Review Commission.
       (c) Notification received pursuant to and in compliance 
     with this section shall not be used against any manager in 
     any criminal case, except in a prosecution for perjury or for 
     giving a false statement.
                                 ______


                      PRESSLER AMENDMENT NO. 1928

  (Ordered to lie on the table.)
  Mr. PRESSLER submitted an amendment intended to be proposed by him to 
the bill, S. 687, supra; as follows:

       At the appropriate place insert the following:

     SEC.   . DISTRIBUTION OF PUNITIVE DAMAGE AWARDS.

       Notwithstanding any other provision of this Act, if 
     punitive damages are awarded in any civil action subject to 
     this Act, 50 percent of the amount of punitive damages 
     (before any attorney's fees are paid) shall be deposited--
       (1) in miscellaneous receipts of the General Treasury of 
     the United States, if such action is filed in Federal court; 
     or
       (2) in any fund as provided by State law of the applicable 
     State, if such action is filed in State court.
                                 ______


                      DOMENICI AMENDMENT NO. 1929

  (Ordered to lie on the table.)
  Mr. DOMENICI submitted an amendment intended to be proposed by him to 
the bill, S. 687, supra; as follows:

       On page 32, after line 12, insert the following new title:
    TITLE III PRIVATE SECURITIES LITIGATION AND FINANCIAL DISCLOSURE

     SEC. 301. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This title may be cited as the ``Private 
     Securities Litigation Reform Act of 1994''.
       (b) Table of Contents.--The table of contents for this 
     title is as follows:

Sec. 301. Short title; table of contents.

               Subtitle A--Private Securities Litigation

Sec. 311. Elimination of certain abusive practices.
Sec. 312. Alternative dispute resolution procedure; time limitation on 
              private rights of action.
Sec. 313. Plaintiff steering committees.
Sec. 314. Requirements for securities fraud actions.
Sec. 315. Amendment to Racketeer Influenced and Corrupt Organizations 
              Act.

                    Subtitle B--Financial Disclosure

Sec. 351. Safe harbor for forward-looking statements.
Sec. 352. Fraud detection and disclosure.
Sec. 353. Proportionate liability and joint and several liability.
Sec. 354. Public Auditing Self-Disciplinary Board.
               Subtitle A--Private Securities Litigation

     SEC. 311. ELIMINATION OF CERTAIN ABUSIVE PRACTICES.

       (a) Receipt for Referral Fees.--Section 15(c) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78o(c)) is amended 
     by adding at the end the following new paragraph:
       ``(7) Receipt of referral fees.--No broker or dealer, or 
     person associated with a broker or dealer, may solicit or 
     accept remuneration for assisting an attorney in obtaining 
     the representation of any customer in any implied private 
     action arising under this title.''.
       (b) Prohibition on Attorneys' Fees Paid From Commission 
     Disgorgement Funds.--Section 21(d) of the Securities Exchange 
     Act of 1934 (15 U.S.C. 78u(d)) is amended by adding at the 
     end the following new paragraph:
       ``(4) Prohibition on attorneys' fees paid from commission 
     disgorgement funds.--Except as otherwise ordered by the 
     court, funds disgorged as the result of an action brought by 
     the Commission in Federal court, or of any Commission 
     administrative action, shall not be distributed as payment 
     for attorneys' fees or expenses incurred by private parties 
     seeking distribution of the disgorged funds.''.
       (c) Additional Provisions Applicable to Class Actions.--
     Section 21 of the Securities Exchange Act of 1934 (15 U.S.C. 
     78u) is amended by adding at the end the following new 
     subsections:
       ``(i) Recovery by Named Plaintiffs in Class Actions.--In an 
     implied private action arising under this title that is 
     certified as a class action pursuant to the Federal Rules of 
     Civil Procedure, the share of any final judgment or of any 
     settlement that is awarded to class plaintiffs serving as the 
     representative parties shall be calculated in the same manner 
     as the shares of the final judgment or settlement awarded to 
     all other members of the class. Nothing in this subsection 
     shall be construed to limit the award to any representative 
     parties of reasonable compensation, costs, and expenses 
     (including lost wages) relating to the representation of the 
     class.
       ``(j) Conflicts of Interest.--In an implied private action 
     arising under this title that is certified as a class action 
     pursuant to the Federal Rules of Civil Procedure, if a party 
     is represented by an attorney who directly owns or otherwise 
     has a beneficial interest in the securities that are the 
     subject of the litigation, the court shall make a 
     determination of whether such interest constitutes a conflict 
     of interest sufficient to disqualify the attorney from 
     representing the party.
       ``(k) Restrictions on Settlements Under Seal.--In an 
     implied private action arising under this title that is 
     certified as a class action pursuant to the Federal Rules of 
     Civil Procedure, the terms and provisions of any settlement 
     agreement between any of the parties shall not be filed under 
     seal, except that on motion of any of the parties to the 
     settlement, the court may order filing under seal for those 
     portions of a settlement agreement as to which good cause is 
     shown for such filing under seal. Good cause shall only exist 
     if publication of a term or provision of a settlement 
     agreement would cause direct and substantial harm to any 
     person.
       ``(l) Restrictions on Payment of Attorneys' Fees From 
     Settlement Funds.--In an implied private action arising under 
     this title that is certified as a class action pursuant to 
     the Federal Rules of Civil Procedure, attorneys' fees awarded 
     by the court to counsel for the class shall be determined as 
     a percentage of the amount of damages and prejudgment 
     interest actually paid to the class as a result of the 
     attorneys' efforts. In no event shall the amount awarded to 
     counsel for the class exceed a reasonable percentage of the 
     amount recovered by the class plus reasonable expenses.
       ``(m) Disclosure of Settlement Terms to Class Members.--In 
     an implied private action arising under this title that is 
     certified as a class action pursuant to the Federal Rules of 
     Civil Procedure, a proposed settlement agreement that is 
     published or otherwise disseminated to the class shall 
     include the following statements, which shall not be 
     admissible for purposes of any Federal or State judicial or 
     administrative proceeding:
       ``(1) Statement of potential outcome of case.--
       ``(A) Agreement on amount of damages and likelihood of 
     prevailing.--If the settling parties agree on the amount of 
     damages per share that would be recoverable if the plaintiff 
     prevailed on each claim alleged under this title and the 
     likelihood that the plaintiff would prevail--
       ``(i) a statement concerning the amount of such potential 
     damages; and
       ``(ii) a statement concerning the probability that the 
     plaintiff would prevail on the claims alleged under this 
     title and a brief explanation of the reasons for that 
     conclusion.
       ``(B) Disagreement on amount of damages or likelihood of 
     prevailing.--If the parties do not agree on the amount of 
     damages per share that would be recoverable if the plaintiff 
     prevailed on each claim alleged under this title or on the 
     likelihood that the plaintiff would prevail on those claims, 
     or both, a statement from each settling party concerning the 
     issue or issues on which the parties disagree.
       ``(C) Inadmissibility for certain purposes.--Statements 
     made in accordance with subparagraphs (A) and (B) shall not 
     be admissible for purposes of any Federal or State judicial 
     or administrative proceeding.
       ``(2) Statement of attorneys' fees or costs sought.--If any 
     of the settling parties or their counsel intend to apply to 
     the court for an award of attorneys' fees or costs from any 
     fund established as part of the settlement, a statement 
     indicating which parties or counsel intend to make such an 
     application, the amount of fees and costs that will be 
     sought, and a brief explanation of the basis for the 
     application.
       ``(3) Identification of representatives.--The name, 
     telephone number, and address of one or more representatives 
     of counsel for the plaintiff class who will be reasonably 
     available to answer questions from class members concerning 
     any matter contained in any notice of settlement published or 
     otherwise disseminated to class members.
       ``(4) Other information.--Such other information as may be 
     required by the court, or by any guardian ad litem or 
     plaintiff steering committee appointed by the court pursuant 
     to section 38.
       ``(n) Special Verdicts.--In an implied private action 
     arising under this title in which the plaintiff may recover 
     money damages only on proof that a defendant acted with a 
     particular state of mind, the court shall, when requested by 
     a defendant, submit to the jury a written interrogatory on 
     the issue of each such defendant's state of mind at the time 
     the alleged violation occurred.
       ``(o) Named Plaintiff Threshold.--In an implied private 
     action arising under this title, in order for a plaintiff or 
     plaintiffs to obtain certification as representatives of a 
     class of investors pursuant to the Federal Rules of Civil 
     Procedure, the plaintiff or plaintiffs must show that they 
     owned, in the aggregate, during the time period in which 
     violations of this title are alleged to have occurred, not 
     less than the lesser of--
       ``(1) 1 percent of the securities which are the subject of 
     the litigation; or
       ``(2) $10,000 (in market value) of such securities.''.

     SEC. 312. ALTERNATIVE DISPUTE RESOLUTION PROCEDURE; TIME 
                   LIMITATION ON PRIVATE RIGHTS OF ACTION.

       (a) Recovery of Costs and Attorneys' Fees.--The Securities 
     Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by 
     adding at the end the following new section:

     ``SEC. 36. ALTERNATIVE DISPUTE RESOLUTION PROCEDURE.

       ``(a) In General.--
       ``(1) Offer to proceed.--Except as provided in paragraph 
     (2), in an implied private action arising under this title, 
     any party may, before the expiration of the period permitted 
     for answering the complaint, deliver to all other parties an 
     offer to proceed pursuant to any voluntary, nonbinding 
     alternative dispute resolution procedure established or 
     recognized under the rules of the court in which the action 
     is maintained.
       ``(2) Plaintiff class actions.--In an implied private 
     action under this title which is brought as a plaintiff class 
     action, an offer under paragraph (1) shall be made not later 
     than 30 days after a guardian ad litem or plaintiff steering 
     committee is appointed by the court in accordance with 
     section 38.
       ``(3) Response.--The recipient of an offer under paragraph 
     (1) or (2) shall file a written notice of acceptance or 
     rejection of the offer with the court not later than 10 days 
     after receipt of the offer. The court may, upon motion by any 
     party made prior to the expiration of such period, extend the 
     period for not more than 90 additional days, during which 
     time discovery may be permitted by the court.
       ``(4) Selection of type of alternative dispute 
     resolution.--For purposes of paragraphs (1) and (2), if the 
     rules of the court establish or recognize more than 1 type of 
     alternative dispute resolution, the parties may stipulate as 
     to the type of alternative dispute resolution to be applied. 
     If the parties are unable to so stipulate, the court shall 
     issue an order not later than 20 days after the date on which 
     the parties agree to the use of alternative dispute 
     resolution, specifying the type of alternative dispute 
     resolution to be applied.
       ``(5) Sanctions for dilatory or obstructive conduct.--If 
     the court finds that a party has engaged in dilatory or 
     obstructive conduct in taking or opposing any discovery 
     allowed during the response period described in paragraph 
     (3), the court may--
       ``(A) extend the period to permit further discovery from 
     that party for a suitable period; and
       ``(B) deny that party the opportunity to conduct further 
     discovery prior to the expiration of the period.
       ``(b) Penalty for Unreasonable Litigation Position.--
       ``(1) Award of costs.--In an implied private action arising 
     under this title, upon motion of the prevailing party made 
     prior to final judgment, the court shall award costs, 
     including reasonable attorneys' fees, against a party or 
     parties or their attorneys, if--
       ``(A) the party unreasonably refuses to proceed pursuant to 
     an alternative dispute resolution procedure, or refuses to 
     accept the result of an alternative dispute resolution 
     procedure;
       ``(B) final judgment is entered against the party; and
       ``(C) the party asserted a claim or defense in the action 
     which was not substantially justified.
       ``(2) Determination of justification.--For purposes of 
     paragraph (1)(C), whether a position is `substantially 
     justified' shall be determined in the same manner as under 
     section 2412(d)(1)(B) of title 28, United States Code.
       ``(3) Limited use.--Fees and costs awarded under this 
     paragraph shall not be applied to any named plaintiff in any 
     action certified as a class action under the Federal Rules of 
     Civil Procedure if such plaintiff has never owned more than 
     $1,000,000 of the securities which are the subject of the 
     litigation.''.
       (b) Limitations Period for Implied Private Rights of 
     Action.--The Securities Exchange Act of 1934 (15 U.S.C. 78a 
     et seq.) is amended by adding at the end the following new 
     section:

     ``SEC. 37. LIMITATIONS PERIOD FOR IMPLIED PRIVATE RIGHTS OF 
                   ACTION.

       ``(a) In General.--Except as otherwise provided in this 
     title, an implied private right of action arising under this 
     title shall be brought not later than the earlier of--
       ``(1) 5 years after the date on which the alleged violation 
     occurred; or
       ``(2) 2 years after the date on which the alleged violation 
     was discovered or should have been discovered through the 
     exercise of reasonable diligence.
       ``(b) Effective Date.--The limitations period provided by 
     this section shall apply to all proceedings pending on or 
     commenced after the date of enactment of this section.''.

     SEC. 313. PLAINTIFF STEERING COMMITTEES.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended by adding at the end the following new section:

     ``SEC. 38. GUARDIAN AD LITEM AND CLASS ACTION STEERING 
                   COMMITTEES.

       ``(a) Guardian Ad Litem.--Except as provided in subsection 
     (b), not later than 10 days after certifying a plaintiff 
     class in an implied private action brought under this title, 
     the court shall appoint a guardian ad litem for the plaintiff 
     class from a list or lists provided by the parties or their 
     counsel. The guardian ad litem shall direct counsel for the 
     class and perform such other functions as the court may 
     specify. The court shall apportion the reasonable fees and 
     expenses of the guardian ad litem among the parties. Court 
     appointment of a guardian ad litem shall not be subject to 
     interlocutory review.
       ``(b) Class Action Steering Committee.--Subsection (a) 
     shall not apply if, not later than 10 days after certifying a 
     plaintiff class, on its own motion or on motion of a member 
     of the class, the court appoints a committee of class members 
     to direct counsel for the class (hereafter in this section 
     referred to as the `plaintiff steering committee') and to 
     perform such other functions as the court may specify. Court 
     appointment of a plaintiff steering committee shall not be 
     subject to interlocutory review.
       ``(c) Membership of Plaintiff Steering Committee.--
       ``(1) Qualifications.--
       ``(A) Number.--A plaintiff steering committee shall consist 
     of not less than 5 class members, willing to serve, who the 
     court believes will fairly represent the class.
       ``(B) Ownership interests.--Members of the plaintiff 
     steering committee shall have cumulatively held during the 
     class period not less than--
       ``(i) the lesser of 5 percent of the securities which are 
     the subject matter of the litigation or securities which are 
     the subject matter of the litigation with a market value of 
     $10,000,000; or
       ``(ii) such smaller percentage or dollar amount as the 
     court finds appropriate under the circumstances.
       ``(2) Named plaintiffs.--Class members who are named 
     plaintiffs in the litigation may serve on the plaintiff 
     steering committee, but shall not comprise a majority of the 
     committee.
       ``(3) Noncompensation of members.--Members of the plaintiff 
     steering committee shall serve without compensation, except 
     that any member may apply to the court for reimbursement of 
     reasonable out-of-pocket expenses from any common fund 
     established for the class.
       ``(4) Meetings.--The plaintiff steering committee shall 
     conduct its business at one or more previously scheduled 
     meetings of the committee at which a majority of its members 
     are present in person or by electronic communication. The 
     plaintiff steering committee shall decide all matters within 
     its authority by a majority vote of all members, except that 
     the committee may determine that decisions other than to 
     accept or reject a settlement offer or to employ or dismiss 
     counsel for the class may be delegated to one or more members 
     of the committee, or may be voted upon by committee members 
     seriatim, without a meeting.
       ``(5) Right of nonmembers to be heard.--A class member who 
     is not a member of the plaintiff steering committee may 
     appear and be heard by the court on any issue in the action, 
     to the same extent as any other party.
       ``(d) Functions of Guardian Ad Litem and Plaintiff Steering 
     Committee.--
       ``(1) Direct counsel.--The authority of the guardian ad 
     litem or the plaintiff steering committee to direct counsel 
     for the class shall include all powers normally permitted to 
     an attorney's client in litigation, including the authority 
     to retain or dismiss counsel and to reject offers of 
     settlement, and the preliminary authority to accept an offer 
     of settlement, subject to the restrictions specified in 
     paragraph (2). Dismissal of counsel other than for cause 
     shall not limit the ability of counsel to enforce any 
     contractual fee agreement or to apply to the court for a fee 
     award from any common fund established for the class.
       ``(2) Settlement offers.--If a guardian ad litem or a 
     plaintiff steering committee gives preliminary approval to an 
     offer of settlement, the guardian ad litem or the plaintiff 
     steering committee may seek approval of the offer by a 
     majority of class members if the committee determines that 
     the benefit of seeking such approval outweighs the cost of 
     soliciting the approval of class members.
       ``(e) Immunity From Liability; Removal.--Any person serving 
     as a guardian ad litem or as a member of a plaintiff steering 
     committee shall be immune from any liability arising from 
     such service. The court may remove a guardian ad litem or a 
     member of a plaintiff steering committee for good cause 
     shown.
       ``(f) Effect on Other Law.--This section does not affect 
     any other provision of law concerning class actions or the 
     authority of the court to give final approval to any offer of 
     settlement.''.

     SEC. 314. REQUIREMENTS FOR SECURITIES FRAUD ACTIONS.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended by adding at the end the following new section:

     ``SEC. 39. REQUIREMENTS FOR SECURITIES FRAUD ACTIONS.

       ``(a) Intent.--In an implied private action arising under 
     this title in which the plaintiff may recover money damages 
     from a defendant only on proof that the defendant acted with 
     some level of intent, the plaintiff's complaint shall allege 
     specific facts demonstrating the state of mind of each 
     defendant at the time the alleged violation occurred.
       ``(b) Misleading Statements and Omissions.--In an implied 
     action arising under this title in which the plaintiff 
     alleges that the defendant--
       ``(1) made an untrue statement of a material fact; or
       ``(2) omitted to state a material fact necessary in order 
     to make the statements made, in the light of the 
     circumstances in which they were made, not misleading;

     the plaintiff shall specify each statement alleged to have 
     been misleading, the reason or reasons why the statement is 
     misleading, and, if an allegation regarding the statement or 
     omission is made on information and belief, the plaintiff 
     shall set forth all information on which that belief is 
     formed.
       ``(c) Burden of Proof.--In an implied private action 
     arising under this title based on a material misstatement or 
     omission concerning a security, and in which the plaintiff 
     claims to have bought or sold the security based on a 
     reasonable belief that the market value of the security 
     reflected all publicly available information, the plaintiff 
     shall have the burden of proving that the misstatement or 
     omission caused any loss incurred by the plaintiff.
       ``(d) Damages.--In an implied private action arising under 
     this title based on a material misstatement or omission 
     concerning a security, and in which the plaintiff claims to 
     have bought or sold the security based on a reasonable belief 
     that the market value of the security reflected all publicly 
     available information, the plaintiff's damages shall not 
     exceed the lesser of--
       ``(1) the difference between the price paid by the 
     plaintiff for the security and the market value of the 
     security immediately after dissemination to the market of 
     information which corrects the misstatement or omission; and
       ``(2) the difference between the price paid by the 
     plaintiff for the security and the price at which the 
     plaintiff sold the security after dissemination of 
     information correcting the misstatement or omission.''.

     SEC. 315. AMENDMENT TO RACKETEER INFLUENCED AND CORRUPT 
                   ORGANIZATIONS ACT.

       Section 1964(c) of title 18, United States Code, is amended 
     by inserting ``, except that no person may bring an action 
     under this provision if the racketeering activity, as defined 
     in section 1961(1)(D), involves fraud in the sale of 
     securities'' before the period.
                    Subtitle B--Financial Disclosure

     SEC. 351. SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS.

       (a) Consideration of Regulatory or Legislative Changes.--In 
     consultation with investors and issuers of securities, the 
     Securities and Exchange Commission shall consider adopting or 
     amending its rules and regulations, or making legislative 
     recommendations, concerning--
       (1) criteria that the Commission finds appropriate for the 
     protection of investors by which forward-looking statements 
     concerning the future economic performance of an issuer of 
     securities registered under section 12 of the Securities 
     Exchange Act of 1934 will be deemed not to be in violation of 
     section 10(b) of that Act; and
       (2) procedures by which courts shall timely dismiss claims 
     against such issuers of securities based on such forward-
     looking statements if such statements are in accordance with 
     any criteria under paragraph (1).
       (b) Commission Considerations.--In developing rules or 
     legislative recommendations in accordance with subsection 
     (a), the Commission shall consider--
       (1) appropriate limits to liability for forward-looking 
     statements;
       (2) procedures for making a summary determination of the 
     applicability of any Commission rule for forward-looking 
     statements early in a judicial proceeding to limit protracted 
     litigation and expansive discovery;
       (3) incorporating and reflecting the scienter requirements 
     applicable to implied private actions under section 10(b); 
     and
       (4) providing clear guidance to issuers of securities and 
     the judiciary.
       (c) Securities Act Amendment.--The Securities and Exchange 
     Act of 1934 (15 U.S.C. 78a et seq.), is amended by adding at 
     the end the following new section:

     ``SEC. 40. APPLICATION OF SAFE HARBOR FOR FORWARD-LOOKING 
                   STATEMENTS.

       ``(a) In General.--In any implied private action arising 
     under this title that alleges that a forward-looking 
     statement concerning the future economic performance of an 
     issuer registered under section 12 was materially false or 
     misleading, if a party making a motion in accordance with 
     subsection (b) requests a stay of discovery concerning the 
     claims or defenses of that party, the court shall grant such 
     a stay until it has ruled on any such motion.
       ``(b) Summary Judgment Motions.--Subsection (a) shall apply 
     to any motion for summary judgment made by a defendant 
     asserting that the forward-looking statement was within the 
     coverage of any rule which the Commission may have adopted 
     concerning such predictive statements, if such motion is made 
     not less than 60 days after the plaintiff commences discovery 
     in the action.
       ``(c) Dilatory Conduct; Duplicative Discovery.--
     Notwithstanding subsection (a) or (b), the time permitted for 
     a plaintiff to conduct discovery under subsection (b) may be 
     extended, or a stay of the proceedings may be denied, if the 
     court finds that--
       ``(1) the defendant making a motion described in subsection 
     (b) engaged in dilatory or obstructive conduct in taking or 
     opposing any discovery; or
       ``(2) a stay of discovery pending a ruling on a motion 
     under subsection (b) would be substantially unfair to the 
     plaintiff or other parties to the action.''.

     SEC. 352. FRAUD DETECTION AND DISCLOSURE.

       (a) In General.--The Securities Exchange Act of 1934 (15 
     U.S.C. 78a et seq.) is amended by inserting immediately after 
     section 10 the following new section:

     ``SEC. 10A. AUDIT REQUIREMENTS.

       ``(a) In General.--Each audit required pursuant to this 
     title of an issuer's financial statements by an independent 
     public accountant shall include, in accordance with generally 
     accepted auditing standards, as may be modified or 
     supplemented from time to time by the Commission--
       ``(1) procedures designed to provide reasonable assurance 
     of detecting illegal acts that would have a direct and 
     material effect on the determination of financial statement 
     amounts;
       ``(2) procedures designed to identify related party 
     transactions which are material to the financial statements 
     or otherwise require disclosure therein; and
       ``(3) an evaluation of whether there is substantial doubt 
     about the issuer's ability to continue as a going concern 
     during the ensuing fiscal year.
       ``(b) Required Response to Audit Discoveries.--
       ``(1) Investigation and report to management.--If, in the 
     course of conducting an audit pursuant to this title to which 
     subsection (a) applies, the independent public accountant 
     detects or otherwise becomes aware of information indicating 
     that an illegal act (whether or not perceived to have a 
     material effect on the issuer's financial statements) has or 
     may have occurred, the accountant shall, in accordance with 
     generally accepted auditing standards, as may be modified or 
     supplemented from time to time by the Commission--
       ``(A)(i) determine whether it is likely that an illegal act 
     has occurred; and
       ``(ii) if so, determine and consider the possible effect of 
     the illegal act on the financial statements of the issuer, 
     including any contingent monetary effects, such as fines, 
     penalties, and damages; and
       ``(B) as soon as practicable, inform the appropriate level 
     of the issuer's management and assure that the issuer's audit 
     committee, or the issuer's board of directors in the absence 
     of such a committee, is adequately informed with respect to 
     illegal acts that have been detected or have otherwise come 
     to the attention of such accountant in the course of the 
     audit, unless the illegal act is clearly inconsequential.
       ``(2) Response to failure to take remedial action.--If, 
     having first assured itself that the audit committee of the 
     board of directors of the issuer or the board (in the absence 
     of an audit committee) is adequately informed with respect to 
     illegal acts that have been detected or have otherwise come 
     to the accountant's attention in the course of such 
     accountant's audit, the independent public accountant 
     concludes that--
       ``(A) the illegal act has a material effect on the 
     financial statements of the issuer;
       ``(B) the senior management has not taken, and the board of 
     directors has not caused senior management to take, timely 
     and appropriate remedial actions with respect to the illegal 
     act; and
       ``(C) the failure to take remedial action is reasonably 
     expected to warrant departure from a standard auditor's 
     report, when made, or warrant resignation from the audit 
     engagement;

     the independent public accountant shall, as soon as 
     practicable, directly report its conclusions to the board of 
     directors.
       ``(3) Notice to commission; response to failure to 
     notify.--An issuer whose board of directors receives a report 
     under paragraph (2) shall inform the Commission by notice not 
     later than 1 business day after the receipt of such report 
     and shall furnish the independent public accountant making 
     such report with a copy of the notice furnished to the 
     Commission. If the independent public accountant fails to 
     receive a copy of the notice before the expiration of the 
     required 1-business-day period, the independent public 
     accountant shall--
       ``(A) resign from the engagement; or
       ``(B) furnish to the Commission a copy of its report (or 
     the documentation of any oral report given) not later than 1 
     business day following such failure to receive notice.
       ``(4) Report after resignation.--If an independent public 
     accountant resigns from an engagement under paragraph (3)(A), 
     the accountant shall, not later than 1 business day following 
     the failure by the issuer to notify the Commission under 
     paragraph (3), furnish to the Commission a copy of the 
     accountant's report (or the documentation of any oral report 
     given).
       ``(c) Auditor Liability Limitation.--No independent public 
     accountant shall be liable in a private action for any 
     finding, conclusion, or statement expressed in a report made 
     pursuant to paragraph (3) or (4) of subsection (b), including 
     any rules promulgated pursuant thereto.
       ``(d) Civil Penalties in Cease-and-Desist Proceedings.--If 
     the Commission finds, after notice and opportunity for 
     hearing in a proceeding instituted pursuant to section 21C, 
     that an independent public accountant has willfully violated 
     paragraph (3) or (4) of subsection (b), the Commission may, 
     in addition to entering an order under section 21C, impose a 
     civil penalty against the independent public accountant and 
     any other person that the Commission finds was a cause of 
     such violation. The determination to impose a civil penalty 
     and the amount of the penalty shall be governed by the 
     standards set forth in section 21B.
       ``(e) Preservation of Existing Authority.--Except as 
     provided in subsection (d), nothing in this section shall be 
     held to limit or otherwise affect the authority of the 
     Commission under this title.
       ``(f) Definition.--As used in this section, the term 
     `illegal act' means an act or omission that violates any law, 
     or any rule or regulation having the force of law.''.
       (b) Effective Dates.--With respect to any registrant that 
     is required to file selected quarterly financial data 
     pursuant to item 302(a) of Regulation S-K of the Securities 
     and Exchange Commission (17 CFR 229.302(a)), the amendments 
     made by subsection (a) shall apply to any annual report for 
     any period beginning on or after January 1, 1994. With 
     respect to any other registrant, the amendment shall apply 
     for any period beginning on or after January 1, 1995.

     SEC. 353. PROPORTIONATE LIABILITY AND JOINT AND SEVERAL 
                   LIABILITY.

       (a) Securities Act Amendment.--The Securities and Exchange 
     Act of 1934 (15 U.S.C. 78a et seq.) is amended by adding at 
     the end the following new section:

     ``SEC. 41. PROPORTIONATE LIABILITY AND JOINT AND SEVERAL 
                   LIABILITY IN IMPLIED ACTIONS.

       ``(a) Applicability.--This section shall apply only to the 
     allocation of damages among persons who are, or who may 
     become, liable for damages in an implied private action 
     arising under this title. Nothing in this section shall 
     affect the standards for liability associated with an implied 
     private action arising under this title.
       ``(b) Application of Joint and Several Liability.--
       ``(1) In general.--A person against whom a judgment is 
     entered in an implied private action arising under this title 
     shall be liable jointly and severally for any recoverable 
     damages on such judgment if the person is found to have--
       ``(A) been a primary wrongdoer;
       ``(B) committed knowing securities fraud; or
       ``(C) controlled any primary wrongdoer or person who 
     committed knowing securities fraud.
       ``(2) Primary wrongdoer.--As used in this subsection--
       ``(A) the term `primary wrongdoer' means--
       ``(i) any--

       ``(I) issuer, registrant, purchaser, seller, or underwriter 
     of securities;
       ``(II) marketmaker or specialist in securities; or
       ``(III) clearing agency, securities information processor, 
     or government securities dealer;

     if such person breached a direct statutory or regulatory 
     obligation or if such person otherwise had a principal role 
     in the conduct that is the basis for the implied right of 
     action; or
       ``(ii) any person who intentionally rendered substantial 
     assistance to the fraudulent conduct of any person described 
     in clause (i), with actual knowledge of such person's 
     fraudulent conduct or fraudulent purpose, and with knowledge 
     that such conduct was wrongful; and
       ``(B) a defendant engages in `knowing securities fraud' if 
     such defendant--
       ``(i) makes a material representation with actual knowledge 
     that the representation is false, or omits to make a 
     statement with actual knowledge that, as a result of the 
     omission, one of the defendant's material representations is 
     false and knows that other persons are likely to rely on that 
     misrepresentation or omission, except that reckless conduct 
     by the defendant shall not be construed to constitute 
     `knowing securities fraud'; or
       ``(ii) intentionally rendered substantial assistance to the 
     fraudulent conduct of any person described in clause (i), 
     with actual knowledge of such person's fraudulent conduct or 
     fraudulent purpose, and with knowledge that such conduct was 
     wrongful.
       ``(c) Determination of Responsibility.--In an implied 
     private action in which more than 1 person contributed to a 
     violation of this title, the court shall instruct the jury to 
     answer special interrogatories, or if there is no jury, shall 
     make findings, concerning the degree of responsibility of 
     each person alleged to have caused or contributed to the 
     violation of this title, including persons who have entered 
     into settlements with the plaintiff. The interrogatories or 
     findings shall specify the amount of damages the plaintiff is 
     entitled to recover and the degree of responsibility, 
     measured as a percentage of the total fault of all persons 
     involved in the violation, of each person found to have 
     caused or contributed to the damages incurred by the 
     plaintiff or plaintiffs. In determining the degree of 
     responsibility, the trier of fact shall consider--
       ``(1) the nature of the conduct of each person; and
       ``(2) the nature and extent of the causal relationship 
     between that conduct and the damage claimed by the plaintiff.
       ``(d) Application of Proportionate Liability.--Except as 
     provided in subsection (b), the amount of liability of a 
     person who is, or may through right of contribution become, 
     liable for damages based on an implied private action arising 
     under this title shall be determined as follows:
       ``(1) Degree of responsibility.--Except as provided in 
     paragraph (2), each liable party shall only be liable for the 
     portion of the judgment that corresponds to that party's 
     degree of responsibility, as determined under subsection (c).
       ``(2) Uncollectible shares.--If, upon motion made not later 
     than 6 months after a final judgment is entered, the court 
     determines that all or part of a defendant's share of the 
     obligation is uncollectible--
       ``(A) the remaining defendants shall be jointly and 
     severally liable for the uncollectible share if the plaintiff 
     establishes that--
       ``(i) the plaintiff is an individual whose recoverable 
     damages under a final judgment are equal to more than 10 
     percent of the plaintiff's net financial worth; and
       ``(ii) the plaintiff's net financial worth is less than 
     $200,000; and
       ``(B) the amount paid by each of the remaining defendants 
     to all other plaintiffs shall be, in total, not more than the 
     greater of--
       ``(i) that remaining defendant's percentage of fault for 
     the uncollectible share; or
       ``(ii) 5 times--

       ``(I) the amount which the defendant gained from the 
     conduct that gave rise to its liability; or
       ``(II) if a defendant did not obtain a direct financial 
     gain from the conduct that gave rise to the liability and the 
     conduct consisted of the provision of deficient services to 
     an entity involved in the violation, the defendant's gross 
     revenues received for the provision of all services to the 
     other entity involved in the violation during the calendar 
     years in which deficient services were provided.

       ``(3) Overall limit.--In no event shall the total payments 
     required pursuant to paragraph (2) exceed the amount of the 
     uncollectible share.
       ``(4) Defendants subject to contribution.--A defendant 
     whose liability is reallocated pursuant to paragraph (2) 
     shall be subject to contribution and to any continuing 
     liability to the plaintiff on the judgment.
       ``(5) Right of contribution.--To the extent that a 
     defendant is required to make an additional payment pursuant 
     to paragraph (2), that defendant may recover contribution--
       ``(A) from the defendant originally liable to make the 
     payment;
       ``(B) from any defendant liable jointly and severally 
     pursuant to subsection (b)(1);
       ``(C) from any defendant held proportionately liable 
     pursuant to this subsection who is liable to make the same 
     payment and has paid less than his or her proportionate share 
     of that payment; or
       ``(D) from any other person responsible for the conduct 
     giving rise to the payment who would have been liable to make 
     the same payment.
       ``(e) Nondisclosure to Jury.--The standard for allocation 
     of damages under subsections (b)(1) and (c) and the procedure 
     for reallocation of uncollectible shares under subsection 
     (d)(2) shall not be disclosed to members of the jury.
       ``(f) Settlement Discharge.--
       ``(1) In general.--A defendant who settles an implied 
     private action brought under this title at any time before 
     verdict or judgment shall be discharged from all claims for 
     contribution brought by other persons. Upon entry of the 
     settlement by the court, the court shall enter a bar order 
     constituting the final discharge of all obligations to the 
     plaintiff of the settling defendant arising out of the 
     action. The order shall bar all future claims for 
     contribution or indemnity arising out of the action--
       ``(A) by nonsettling persons against the settling 
     defendant; and
       ``(B) by the settling defendant against any nonsettling 
     defendants.
       ``(2) Reduction.--If a person enters into a settlement with 
     the plaintiff prior to verdict or judgment, the verdict or 
     judgment shall be reduced by the greater of--
       ``(A) an amount that corresponds to the degree of 
     responsibility of that person; or
       ``(B) the amount paid to the plaintiff by that person.
       ``(g) Contribution.--A person who becomes liable for 
     damages in an implied private action arising under this title 
     may recover contribution from any other person who, if joined 
     in the original suit, would have been liable for the same 
     damages. A claim for contribution shall be determined based 
     on the degree of responsibility of the claimant and of each 
     person against whom a claim for contribution is made.
       ``(h) Statute of Limitations for Contribution.--Once 
     judgment has been entered in an implied private action 
     arising under this title determining liability, an action for 
     contribution must be brought not later than 6 months after 
     the entry of a final, nonappealable judgment in the action, 
     except that an action for contribution brought by a defendant 
     who was required to make an additional payment pursuant to 
     subsection (d)(2) may be brought not later than 6 months 
     after the date on which such payment was made.''.
       (b) Effective Date.--Section 41 of the Securities Exchange 
     Act of 1934, as added by subsection (a), shall only apply to 
     implied private actions commenced after the date of enactment 
     of this Act.

     SEC. 354. PUBLIC AUDITING SELF-DISCIPLINARY BOARD.

       The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
     is amended by inserting immediately after section 13 the 
     following new section:

     ``SEC. 13A. PUBLIC AUDITING SELF-DISCIPLINARY BOARD.

       ``(a) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Public accounting firm.--The term `public accounting 
     firm' means a sole proprietorship, unincorporated 
     association, partnership, corporation, or other legal entity 
     that is engaged in the practice of public accounting.
       ``(2) Board.--The term `Board' means the Public Auditing 
     Self-Disciplinary Board designated by the Commission pursuant 
     to subsection (b).
       ``(3) Accountant's report.--The term `accountant's report' 
     means a document in which a public accounting firm identifies 
     a financial statement, report, or other document and sets 
     forth the firm's opinion regarding such financial statement, 
     report, or other document, or an assertion that an opinion 
     cannot be expressed.
       ``(4) Person associated with a public accounting firm.--The 
     term `person associated with a public accounting firm' means 
     a natural person who--
       ``(A) is a partner, shareholder, employee, or individual 
     proprietor of a public accounting firm, or who shares in the 
     profits of a public accounting firm; and
       ``(B) engages in any conduct or practice in connection with 
     the preparation of an accountant's report on any financial 
     statement, report, or other document required to be filed 
     with the Commission under any securities law.
       ``(5) Professional standards.--The term `professional 
     standards' means generally accepted auditing standards, 
     generally accepted accounting principles, generally accepted 
     standards for attestation engagements, and any other 
     standards related to the preparation of financial statements 
     or accountant's reports promulgated by the Commission or a 
     standard-setting body recognized by the Board.
       ``(b) Establishment of Board.--
       ``(1) In general.--Not later than 90 days after the date of 
     enactment of this section, the Commission shall establish a 
     Public Auditing Self-Disciplinary Board to perform the duties 
     set forth in this section. The Commission shall designate an 
     entity to serve as the Board if the Commission finds that--
       ``(A) such entity is sponsored by an existing national 
     organization of certified public accountants that--
       ``(i) is most representative of certified public 
     accountants covered by this title; and
       ``(ii) has demonstrated its commitment to improving the 
     quality of practice before the Commission; and
       ``(B) control over such entity is vested in the members of 
     the Board selected pursuant to subsection (c).
       ``(2) Alternative election of members.--If the Commission 
     designates an entity to serve as the Board pursuant to 
     paragraph (1), the entity shall conduct the election of 
     initial Board members in accordance with subsection 
     (c)(1)(B)(i).
       ``(c) Membership of Board.--
       ``(1) In general.--The Board shall be composed of 3 
     appointed members and 4 elected members, as follows:
       ``(A) Appointed members.--Three members of the Board shall 
     be appointed in accordance with the following:
       ``(i) Initial appointments.--The Chairman of the Commission 
     shall make the initial appointments, in consultation with the 
     other members of the Commission, not later than 90 days after 
     the date of enactment of this section.
       ``(ii) Subsequent appointments.--After the initial 
     appointments under clause (i), members of the Board appointed 
     to fill vacancies of appointed members of the Board shall be 
     appointed in accordance with the rules adopted pursuant to 
     paragraph (5). Such rules shall provide that such members 
     shall be appointed by the Board, subject to the approval of 
     the Commission.
       ``(B) Elected members.--Four members, including the member 
     who shall serve as the chairperson of the Board, shall be 
     elected in accordance with the following:
       ``(i) Initial election.--Not later than 120 days after the 
     date on which the Chairman of the Commission makes 
     appointments under subparagraph (A)(i), an entity designated 
     by the Commission pursuant to subsection (b) shall conduct an 
     election of 4 initial elected members pursuant to interim 
     election rules proposed by the entity and approved by the 3 
     interim members of the Board and the Commission. If the 
     Commission is unable to designate an entity meeting the 
     criteria set forth in subsection (b)(1), the members of the 
     Board appointed under subparagraph (A)(i) shall adopt interim 
     rules, subject to approval by the Commission, providing for 
     the election of the 4 initial elected members. Such rules 
     shall provide that such members of the Board shall be 
     elected--

       ``(I) not later than 120 days after the date on which 
     members are initially appointed under subparagraph (A)(i);
       ``(II) by persons who are associated with public accounting 
     firms and who are certified public accountants under the laws 
     of any State; and
       ``(III) subject to the approval of the Commission.

       ``(ii) Subsequent elections.--After the initial elections 
     under clause (i), members of the Board elected to fill 
     vacancies of elected members of the Board shall be elected in 
     accordance with the rules adopted pursuant to paragraph (5). 
     Such rules shall provide that such members of the Board shall 
     be elected--

       ``(I) by persons who are associated with public accounting 
     firms and who are certified public accountants under the laws 
     of any State; and
       ``(II) subject to the approval of the Commission.

       ``(2) Qualification.--Four members of the Board, including 
     the chairperson of the Board, shall be persons who have not 
     been associated with a public accounting firm during the 10-
     year period preceding appointment or election to the Board 
     under paragraph (1). Three members of the Board who are 
     elected shall be persons associated with a public accounting 
     firm registered with the Board.
       ``(3) Full-time basis.--The chairperson of the Board shall 
     serve on a full-time basis, severing all business ties with 
     his or her former firms or employers prior to beginning 
     service on the Board.
       ``(4) Terms.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     each member of the Board shall hold office for a term of 4 
     years or until a successor is appointed, whichever is later, 
     except that any member appointed to fill a vacancy occurring 
     prior to the expiration of the term for which such member's 
     predecessor was appointed shall be appointed for the 
     remainder of such term.
       ``(B) Initial board members.--Beginning on the date on 
     which all members of the Board have been selected in 
     accordance with this subsection, the terms of office of the 
     initial Board members shall expire, as determined by the 
     Board, by lottery--
       ``(i) for 1 member, 1 year after such date;
       ``(ii) for 2 members, 2 years after such date;
       ``(iii) for 2 members, 3 years after such date; and
       ``(iv) for 2 members, 4 years after such date.
       ``(5) Rules.--Following selection of the 7 initial members 
     of the Board in accordance with subparagraphs (A)(i) and 
     (B)(i) of paragraph (1), the Board shall propose and adopt 
     rules, which shall provide for--
       ``(A) the operation and administration of the Board, 
     including--
       ``(i) the appointment of members in accordance with 
     paragraph (1)(A)(ii);
       ``(ii) the election of members in accordance with paragraph 
     (1)(B)(ii); and
       ``(iii) the compensation of the members of the Board;
       ``(B) the appointment and compensation of such employees, 
     attorneys, and consultants as may be necessary or appropriate 
     to carry out the Board's functions under this title;
       ``(C) the registration of public accounting firms with the 
     Board pursuant to subsections (d) and (e); and
       ``(D) the matters described in subsections (f) and (g).
       ``(d) Registration and Annual Fees.--After the date on 
     which all initial members of the Board have been selected in 
     accordance with subsection (c), the Board shall assess and 
     collect a registration fee and annual dues from each public 
     accounting firm registered with the Board. Such fees and dues 
     shall be assessed at a level sufficient to recover the costs 
     and expenses of the Board and to permit the Board to operate 
     on a self-financing basis. The amount of fees and dues for 
     each public accounting firm shall be based upon--
       ``(1) the annual revenues of such firm from accounting and 
     auditing services;
       ``(2) the number of persons associated with the public 
     accounting firm;
       ``(3) the number of clients for which such firm furnishes 
     accountant's reports on financial statements, reports, or 
     other documents filed with the Commission; and
       ``(4) such other criteria as the Board may establish.
       ``(e) Registration With Board.--
       ``(1) Registration required.--Beginning 1 year after the 
     date on which all initial members of the Board have been 
     selected in accordance with subsection (c), it shall be 
     unlawful for a public accounting firm to furnish an 
     accountant's report on any financial statement, report, or 
     other document required to be filed with the Commission under 
     any Federal securities law, unless such firm is registered 
     with the Board.
       ``(2) Application for registration.--A public accounting 
     firm may be registered under this subsection by filing with 
     the Board an application for registration in such form and 
     containing such information as the Board, by rule, may 
     prescribe. Each application shall include--
       ``(A) the names of all clients of the public accounting 
     firm for which the firm furnishes accountant's reports on 
     financial statements, reports, or other documents filed with 
     the Commission;
       ``(B) financial information of the public accounting firm 
     for its most recent fiscal year, including its annual 
     revenues from accounting and auditing services, its assets 
     and its liabilities;
       ``(C) a statement of the public accounting firm's policies 
     and procedures with respect to quality control of its 
     accounting and auditing practice;
       ``(D) information relating to criminal, civil, or 
     administrative actions or formal disciplinary proceedings 
     pending against such firm, or any person associated with such 
     firm, in connection with an accountant's report furnished by 
     such firm;
       ``(E) a list of persons associated with the public 
     accounting firm who are certified public accountants, 
     including any State professional license or certification 
     number for each such person; and
       ``(F) such other information that is reasonably related to 
     the Board's responsibilities as the Board considers necessary 
     or appropriate.
       ``(3) Periodic reports.--Once in each year, or more 
     frequently as the Board, by rule, may prescribe, each public 
     accounting firm registered with the Board shall submit 
     reports to the Board updating the information contained in 
     its application for registration and containing such 
     additional information that is reasonably related to the 
     Board's responsibilities as the Board, by rule, may 
     prescribe.
       ``(4) Exemptions.--The Commission, by rule or order, upon 
     its own motion or upon application, may conditionally or 
     unconditionally exempt any public accounting firm or any 
     accountant's report, or any class of public accounting firms 
     or any class of accountant's reports, from any provisions of 
     this section or the rules or regulations issued hereunder, if 
     the Commission finds that such exemption is consistent with 
     the public interest, the protection of investors, and the 
     purposes of this section.
       ``(5) Confidentiality.--The Board may, by rule, designate 
     portions of the filings required pursuant to paragraphs (2) 
     and (3) as privileged and confidential.
       ``(f) Duties of Board.--After the date on which all initial 
     members of the Board have been selected in accordance with 
     subsection (c), the Board shall have the following duties and 
     powers:
       ``(1) Investigations and disciplinary proceedings.--The 
     Board shall establish fair procedures for investigating and 
     disciplining public accounting firms registered with the 
     Board, and persons associated with such firms, for violations 
     of the Federal securities laws, the rules or regulations 
     issued thereunder, the rules adopted by the Board, or 
     professional standards in connection with the preparation of 
     an accountant's report on a financial statement, report, or 
     other document filed with the Commission.
       ``(2) Investigation procedures.--
       ``(A) In general.--The Board may conduct an investigation 
     of any act, practice, or omission by a public accounting firm 
     registered with the Board, or by any person associated with 
     such firm, in connection with the preparation of an 
     accountant's report on a financial statement, report, or 
     other document filed with the Commission that may violate any 
     applicable provision of the Federal securities laws, the 
     rules and regulations issued thereunder, the rules adopted by 
     the Board, or professional standards, whether such act, 
     practice, or omission is the subject of a criminal, civil, or 
     administrative action, or a disciplinary proceeding, or 
     otherwise is brought to the attention of the Board.
       ``(B) Powers of board.--For purposes of an investigation 
     under this paragraph, the Board may, in addition to such 
     other actions as the Board determines to be necessary or 
     appropriate--
       ``(i) require the testimony of any person associated with a 
     public accounting firm registered with the Board, with 
     respect to any matter which the Board considers relevant or 
     material to the investigation;
       ``(ii) require the production of audit workpapers and any 
     other document or information in the possession of a public 
     accounting firm registered with the Board, or any person 
     associated with such firm, wherever domiciled, that the Board 
     considers relevant or material to the investigation, and may 
     examine the books and records of such firm to verify the 
     accuracy of any documents or information so supplied; and
       ``(iii) request the testimony of any person and the 
     production of any document in the possession of any person, 
     including a client of a public accounting firm registered 
     with the Board, that the Board considers relevant or material 
     to the investigation.
       ``(C) Suspension or revocation of registration for 
     noncompliance.--The refusal of any person associated with a 
     public accounting firm registered with the Board to testify, 
     or the refusal of any such person to produce documents or 
     otherwise cooperate with the Board, in connection with an 
     investigation under this section, shall be cause for 
     suspending or barring such person from associating with a 
     public accounting firm registered with the Board, or such 
     other appropriate sanction as the Board shall determine. The 
     refusal of any public accounting firm registered with the 
     Board to produce documents or otherwise cooperate with the 
     Board, in connection with an investigation under this 
     section, shall be cause for the suspension or revocation of 
     the registration of such firm, or such other appropriate 
     sanction as the Board shall determine.
       ``(D) Referral to commission.--
       ``(i) In general.--If the Board is unable to conduct or 
     complete an investigation under this section because of the 
     refusal of any client of a public accounting firm registered 
     with the Board, or any other person, to testify, produce 
     documents, or otherwise cooperate with the Board in 
     connection with such investigation, the Board shall report 
     such refusal to the Commission.
       ``(ii) Investigation.--The Commission may designate the 
     Board or one or more officers of the Board who shall be 
     empowered, in accordance with such procedures as the 
     Commission may adopt, to subpoena witnesses, compel their 
     attendance, and require the production of any books, papers, 
     correspondence, memoranda, or other records relevant to any 
     investigation by the Board. Attendance of witnesses and the 
     production of any records may be required from any place in 
     the United States or any State at any designated place of 
     hearing. Enforcement of a subpoena issued by the Board, or an 
     officer of the Board, pursuant to this subparagraph shall 
     occur in the manner provided for in section 21(c). 
     Examination of witnesses subpoenaed pursuant to this 
     subparagraph shall be conducted before an officer authorized 
     to administer oaths by the laws of the United States or of 
     the place where the examination is held.
       ``(iii) Referrals to commission.--The Board may refer any 
     investigation to the Commission, as the Board deems 
     appropriate.
       ``(E) Immunity from civil liability.--An employee of the 
     Board engaged in carrying out an investigation or 
     disciplinary proceeding under this section shall be immune 
     from any civil liability arising out of such investigation or 
     disciplinary proceeding in the same manner and to the same 
     extent as an employee of the Federal Government in similar 
     circumstances.
       ``(3) Disciplinary procedures.--
       ``(A) Decision to discipline.--In a proceeding by the Board 
     to determine whether a public accounting firm, or a person 
     associated with such firm, should be disciplined, the Board 
     shall bring specific charges, notify such firm or person of 
     the charges, give such firm or person an opportunity to 
     defend against such charges, and keep a record of such 
     actions.
       ``(B) Sanctions.--If the Board finds that a public 
     accounting firm, or a person associated with such firm, has 
     engaged in any act, practice, or omission in violation of the 
     Federal securities laws, the rules or regulations issued 
     thereunder, the rules adopted by the Board, or professional 
     standards, the Board may impose such disciplinary sanctions 
     as it deems appropriate, including--
       ``(i) revocation or suspension of registration under this 
     section;
       ``(ii) limitation of activities, functions, and operations;
       ``(iii) fine;
       ``(iv) censure;
       ``(v) in the case of a person associated with a public 
     accounting firm, suspension or bar from being associated with 
     a public accounting firm registered with the Board; and
       ``(vi) any other disciplinary sanction that the Board 
     determines to be appropriate.
       ``(C) Statement required.--A determination by the Board to 
     impose a disciplinary sanction shall be supported by a 
     written statement by the Board setting forth--
       ``(i) any act or practice in which the public accounting 
     firm or person associated with such firm has been found to 
     have engaged, or which such firm or person has been found to 
     have omitted;
       ``(ii) the specific provision of the Federal securities 
     laws, the rules or regulations issued thereunder, the rules 
     adopted by the Board, or professional standards which any 
     such act, practice, or omission is deemed to violate; and
       ``(iii) the sanction imposed and the reasons therefor.
       ``(D) Prohibition on association.--It shall be unlawful--
       ``(i) for any person as to whom a suspension or bar is in 
     effect willfully to be or to become associated with a public 
     accounting firm registered with the Board, in connection with 
     the preparation of an accountant's report on any financial 
     statement, report, or other document filed with the 
     Commission, without the consent of the Board or the 
     Commission; and
       ``(ii) for any public accounting firm registered with the 
     Board to permit such a person to become, or remain, 
     associated with such firm without the consent of the Board or 
     the Commission, if such firm knew or, in the exercise of 
     reasonable care should have known, of such suspension or bar.
       ``(4) Reporting of sanctions.--If the Board imposes a 
     disciplinary sanction against a public accounting firm, or a 
     person associated with such firm, the Board shall report such 
     sanction to the Commission, to the appropriate State or 
     foreign licensing board or boards with which such firm or 
     such person is licensed or certified to practice public 
     accounting, and to the public. The information reported shall 
     include--
       ``(A) the name of the public accounting firm, or person 
     associated with such firm, against whom the sanction is 
     imposed;
       ``(B) a description of the acts, practices, or omissions 
     upon which the sanction is based;
       ``(C) the nature of the sanction; and
       ``(D) such other information respecting the circumstances 
     of the disciplinary action (including the name of any client 
     of such firm affected by such acts, practices, or omissions) 
     as the Board deems appropriate.
       ``(5) Discovery and admissibility of board material.--
       ``(A) Discoverability.--
       ``(i) In general.--Except as provided in subparagraph (C), 
     all reports, memoranda, and other information prepared, 
     collected, or received by the Board, and the deliberations 
     and other proceedings of the Board and its employees and 
     agents in connection with an investigation or disciplinary 
     proceeding under this section shall not be subject to any 
     form of civil discovery, including demands for production of 
     documents and for testimony of individuals, in connection 
     with any proceeding in any State or Federal court, or before 
     any State or Federal administrative agency. This subparagraph 
     shall not apply to any information provided to the Board that 
     would have been subject to discovery from the person or 
     entity that provided it to the Board, but is no longer 
     available from that person or entity.
       ``(ii) Exemption.--Submissions to the Board by or on behalf 
     of a public accounting firm or person associated with such a 
     firm or on behalf of any other participant in a Board 
     proceeding, including documents generated by the Board 
     itself, shall be exempt from discovery to the same extent as 
     the material described in clause (i), whether in the 
     possession of the Board or any other person, if such 
     submission--

       ``(I) is prepared specifically for the purpose of the Board 
     proceeding; and
       ``(II) addresses the merits of the issues under 
     investigation by the Board.

       ``(iii) Construction.--Nothing in this subparagraph shall 
     limit the authority of the Board to provide appropriate 
     public access to disciplinary hearings of the Board, or to 
     reports or memoranda received by the Board in connection with 
     such proceedings.
       ``(B) Admissibility.--
       ``(i) In general.--Except as provided in subparagraph (C), 
     all reports, memoranda, and other information prepared, 
     collected, or received by the Board, the deliberations and 
     other proceedings of the Board and its employees and agents 
     in connection with an investigation or disciplinary 
     proceeding under this section, the fact that an investigation 
     or disciplinary proceeding has been commenced, and the 
     Board's determination with respect to any investigation or 
     disciplinary proceeding shall be inadmissible in any 
     proceeding in any State or Federal court or before any State 
     or Federal administrative agency.
       ``(ii) Treatment of certain documents.--Submissions to the 
     Board by or on behalf of a public accounting firm or person 
     associated with such a firm or on behalf of any other 
     participant in a Board proceeding, including documents 
     generated by the Board itself, shall be inadmissible to the 
     same extent as the material described in clause (i), if such 
     submission--

       ``(I) is prepared specifically for the purpose of the Board 
     proceedings; and
       ``(II) addresses the merits of the issues under 
     investigation by the Board.

       ``(C) Availability and admissibility of information.--
       ``(i) In general.--All information referred to in 
     subparagraphs (A) and (B) shall be--

       ``(I) available to the Commission and to any other Federal 
     department or agency in connection with the exercise of its 
     regulatory authority to the extent that such information 
     would be available to such agency from the Commission as a 
     result of a Commission enforcement investigation;
       ``(II) available to Federal and State authorities in 
     connection with any criminal investigation or proceeding;
       ``(III) admissible in any action brought by the Commission 
     or any other Federal department or agency pursuant to its 
     regulatory authority, to the extent that such information 
     would be available to such agency from the Commission as a 
     result of a Commission enforcement investigation and in any 
     criminal action; and
       ``(IV) available to State licensing boards to the extent 
     authorized in paragraph (6).

       ``(ii) Other limitations.--Any documents or other 
     information provided to the Commission or other authorities 
     pursuant to clause (i) shall be subject to the limitations on 
     discovery and admissibility set forth in subparagraphs (A) 
     and (B).
       ``(D) Title 5 treatment.--This subsection shall be 
     considered to be a statute described in section 552(b)(3)(B) 
     of title 5, United States Code, for purposes of that section 
     552.
       ``(6) Participation by state licensing boards.--
       ``(A) Notice.--When the Board institutes an investigation 
     pursuant to paragraph (2)(A), it shall notify the State 
     licensing boards in the States in which the public accounting 
     firm or person associated with such firm engaged in the act 
     or failure to act alleged to have violated professional 
     standards, of the pendancy of the investigation, and shall 
     invite the State licensing boards to participate in the 
     investigation.
       ``(B) Acceptance by state board.--
       ``(i) Participation.--If a State licensing board elects to 
     join in the investigation, its representatives shall 
     participate, pursuant to rules established by the Board, in 
     investigating the matter and in presenting the evidence 
     justifying the charges in any hearing pursuant to paragraph 
     (3)(A).
       ``(ii) Review.--In the event that the State licensing board 
     disagrees with the Board's determination with respect to the 
     matter under investigation, it may seek review of that 
     determination by the Commission pursuant to procedures that 
     the Commission shall specify by regulation.
       ``(C) Prohibition on concurrent investigations.--A State 
     licensing board shall not institute its own proceeding with 
     respect to a matter referred to in subparagraph (A) until 
     after the Board's determination has become final, including 
     completion of all review by the Commission and the courts.
       ``(D) State sanctions permitted.--If the Board or the 
     Commission imposes a sanction upon a public accounting firm 
     or person associated with such a firm, and that determination 
     either is not subjected to judicial review or is upheld on 
     judicial review, a State licensing board may impose a 
     sanction on the basis of the Board's report pursuant to 
     paragraph (4). Any sanction imposed by the State licensing 
     board under this clause shall be inadmissible in any 
     proceeding in any State or Federal court or before any State 
     or Federal administrative agency, except to the extent 
     provided in paragraph (5)(D).
       ``(E) Sanctions not permitted.--If a sanction is not 
     imposed on a public accounting firm or person associated with 
     such a firm, and--
       ``(i) a State licensing board elected to participate in an 
     investigation referred to in subparagraph (A), the State 
     licensing board may not impose a sanction with respect to the 
     matter; and
       ``(ii) a State licensing board elected not to participate 
     in an investigation referred to in subparagraph (A), 
     subparagraphs (A) and (B) of paragraph (5) shall apply with 
     respect to any investigation or proceeding subsequently 
     instituted by the State licensing board and, in particular, 
     the State licensing board shall not have access to the record 
     of the proceeding before the Board and that record shall be 
     inadmissible in any proceeding before the State licensing 
     board.
       ``(g) Additional Duties Regarding Quality Control.--After 
     the date on which all initial members of the Board have been 
     selected in accordance with subsection (c), the Board shall 
     have the following duties and powers in addition to those set 
     forth in subsection (f):
       ``(1) In general.--The Board shall seek to promote a high 
     level of professional conduct among public accounting firms 
     registered with the Board, to improve the quality of audit 
     services provided by such firms, and, in general, to protect 
     investors and promote the public interest.
       ``(2) Professional peer review organizations.--
       ``(A) Membership requirement.--The Board shall require each 
     public accounting firm subject to the disciplinary authority 
     of the Board to be a member of a professional peer review 
     organization certified by the Board pursuant to subparagraph 
     (B).
       ``(B) Criteria for certification.--The Board shall, by 
     rule, establish general criteria for the certification of 
     peer review organizations and shall certify organizations 
     that satisfy those criteria, or such amended criteria as the 
     Board may adopt. To be certified, a peer review organization 
     shall, at a minimum--
       ``(i) require a member public accounting firm to undergo 
     peer review not less than once every 3 years and publish the 
     results of the peer review; and
       ``(ii) adopt standards that are acceptable to the Board 
     relating to audit service quality control.
       ``(C) Penalties.--Violation by a public accounting firm or 
     a person associated with such a firm of a rule of the peer 
     review organization to which the firm belongs shall 
     constitute grounds for--
       ``(i) the imposition of disciplinary sanctions by the Board 
     pursuant to subsection (f); and
       ``(ii) denial to the public accounting firm or person 
     associated with such firm of the privilege of appearing or 
     practicing before the Commission.
       ``(3) Confidentiality.--Except as otherwise provided by 
     this section, all reports, memoranda, and other information 
     provided to the Board solely for purposes of paragraph (2), 
     or to a peer review organization certified by the Board, 
     shall be confidential and privileged, unless such 
     confidentiality and privilege are expressly waived by the 
     person or entity that created or provided the information.
       ``(h) Commission Oversight of the Board.--
       ``(1) Proposed rule changes.--
       ``(A) In general.--The Board shall file with the 
     Commission, in accordance with such rules as the Commission 
     may prescribe, copies of any proposed rule or any proposed 
     change in, addition to, or deletion from the rules of the 
     Board (hereafter in this subsection collectively referred to 
     as a `proposed rule change') accompanied by a concise general 
     statement of the basis and purpose of such proposed rule 
     change. The Commission shall, upon the filing of any proposed 
     rule change, publish notice thereof together with the terms 
     of substance of the proposed rule change or a description of 
     the subjects and issues involved. The Commission shall give 
     interested persons an opportunity to submit written data, 
     views, and arguments concerning the proposed rule change. No 
     proposed rule change shall take effect unless approved by the 
     Commission or otherwise permitted in accordance with this 
     subsection.
       ``(B) Approval or disapproval.--
       ``(i) In general.--Not later than 35 days after the date on 
     which notice of the filing of a proposed rule change is 
     published in accordance with subparagraph (A), or such longer 
     period as the Commission may designate (not to exceed 90 days 
     after such date, if it finds such longer period to be 
     appropriate and publishes its reasons for such finding or as 
     to which the Board consents) the Commission shall--

       ``(I) by order approve such proposed rule change; or
       ``(II) institute proceedings to determine whether the 
     proposed rule change should be disapproved.

       ``(ii) Disapproval proceedings.--Proceedings for 
     disapproval shall include notice of the grounds for 
     disapproval under consideration and opportunity for hearing 
     and shall be concluded not later than 180 days after the date 
     of publication of notice of the filing of the proposed rule 
     change. At the conclusion of the proceedings for disapproval, 
     the Commission, by order, shall approve or disapprove such 
     proposed rule change. The Commission may extend the time for 
     conclusion of such proceedings for--

       ``(I) not more than 60 days, if the Commission finds good 
     cause for such extension and publishes its reasons for such 
     finding; or
       ``(II) such longer period to which the Board consents.

       ``(iii) Approval.--The Commission shall approve a proposed 
     rule change if it finds that such proposed rule change is 
     consistent with the requirements of the Federal securities 
     laws, and the rules and regulations issued thereunder, 
     applicable to the Board. The Commission shall disapprove a 
     proposed rule change if it does not make such finding. The 
     Commission shall not approve any proposed rule change prior 
     to the expiration of the 30-day period beginning on the date 
     on which notice of the filing of a proposed rule change is 
     published in accordance with this subparagraph, unless the 
     Commission finds good cause to do so and publishes its 
     reasons for such finding.
       ``(C) Effect of proposed rule change.--
       ``(i) Effective date.--Notwithstanding subparagraph (B), a 
     proposed rule change may take effect upon filing with the 
     Commission if designated by the Board as--

       ``(I) constituting a stated policy, practice, or 
     interpretation with respect to the meaning, administration, 
     or enforcement of an existing rule of the Board;

       ``(II) establishing or changing a due, fee, or other charge 
     imposed by the Board; or
       ``(III) concerned solely with the administration of the 
     Board or other matters which the Commission, by rule, 
     consistent with the public interest and the purposes of this 
     subsection, may specify.

       ``(ii) Summary effect.--Notwithstanding any other provision 
     of this subsection, a proposed rule change may be put into 
     effect summarily if it appears to the Commission that such 
     action is necessary for the protection of investors. Any 
     proposed rule change put into effect summarily shall be filed 
     promptly thereafter in accordance with this paragraph.
       ``(iii) Enforcement.--Any proposed rule change which has 
     taken effect pursuant to clause (i) or (ii) may be enforced 
     by the Board to the extent that it is not inconsistent with 
     the Federal securities laws, the rules and regulations issued 
     thereunder, and applicable Federal and State law. During the 
     60-day period beginning on the date on which notice of the 
     filing of a proposed rule change if filed in accordance with 
     this paragraph, the Commission may summarily abrogate the 
     change in the rules of the Board made thereby and require 
     that the proposed rule change be refiled in accordance with 
     subparagraph (A) and reviewed in accordance with subparagraph 
     (B), if it appears to the Commission that such action is 
     necessary or appropriate in the public interest, for the 
     protection of investors, or otherwise in furtherance of the 
     purposes of the Federal securities laws. Commission action 
     pursuant to the preceding sentence shall not affect the 
     validity or force of the rule change during the period it was 
     in effect and shall not be reviewable under section 25 of 
     this Act nor deemed to be `final agency action' for purposes 
     of section 704 of title 5, United States Code.
       ``(2) Amendment by commission of rules of the board.--The 
     Commission, by rule, may abrogate, add to, and delete from 
     (hereafter in this subsection collectively referred to as 
     `amend') the rules of the Board as the Commission deems 
     necessary or appropriate to ensure the fair administration of 
     the Board, to conform its rules to requirements of the 
     Federal securities laws, and the rules and regulations issued 
     thereunder applicable to the Board, or otherwise in 
     furtherance of the purposes of the Federal securities laws, 
     in the following manner:
       ``(A) Publication of notice.--The Commission shall notify 
     the Board and publish notice of the proposed rulemaking in 
     the Federal Register. The notice shall include the text of 
     the proposed amendment to the rules of the Board and a 
     statement of the Commission's reasons, including any 
     pertinent facts, for commencing such proposed rulemaking.
       ``(B) Comments.--The Commission shall give interested 
     persons an opportunity for the oral presentation of data, 
     views, and arguments, in addition to an opportunity to make 
     written submissions. A transcript shall be kept of any oral 
     presentation.
       ``(C) Incorporation.--A rule adopted pursuant to this 
     subsection shall incorporate the text of the amendment to the 
     rules of the Board and a statement of the Commission's basis 
     for and purpose in so amending such rules. Such statement 
     shall include an identification of any facts on which the 
     Commission considers its determination to so amend the rules 
     of the Board to be based, including the reasons for the 
     Commission's conclusions as to any of the facts that were 
     disputed in the rulemaking.
       ``(D) Regulations.--
       ``(i) Title 5 applicability.--Except as otherwise provided 
     in this paragraph, rulemaking under this paragraph shall be 
     in accordance with the procedures specified in section 553 of 
     title 5, United States Code, for rulemaking not on the 
     record.
       ``(ii) Construction.--Nothing in this subsection shall be 
     construed to impair or limit the Commission's power to make, 
     modify, or alter the procedures the Commission may follow in 
     making rules and regulations pursuant to any other authority 
     under the Federal securities laws.
       ``(iii) Incorporation of amendments.--Any amendment to the 
     rules of the Board made by the Commission pursuant to this 
     subsection shall be considered for purposes of the Federal 
     securities laws to be part of the rules of the Board and 
     shall not be considered to be a rule of the Commission.
       ``(3) Notice of disciplinary action taken by the board; 
     review of action by the commission.--
       ``(A) Notice required.--If the Board imposes a final 
     disciplinary sanction on a public accounting firm registered 
     with the Board or on any person associated with such a firm, 
     the Board shall promptly file notice thereof with the 
     Commission. The notice shall be in such form and contain such 
     information as the Commission, by rule, may prescribe as 
     necessary or appropriate in furtherance of the purposes of 
     the Federal securities laws.
       ``(B) Review.--An action with respect to which the Board is 
     required by subparagraph (A) to file notice shall be subject 
     to review by the Commission, on its own motion, or upon 
     application by any person aggrieved thereby, filed not later 
     than 30 days after the date on which such notice is filed 
     with the Commission and received by such aggrieved person, or 
     within such longer period as the Commission may determine. 
     Application to the Commission for review, or the institution 
     of review by the Commission on its own motion, shall not 
     operate as a stay of such action unless the Commission 
     otherwise orders, summarily or after notice and opportunity 
     for hearing on the question of a stay (which hearing may 
     consist solely of the submission of affidavits or 
     presentation of oral arguments). The Commission shall 
     establish for appropriate cases an expedited procedure for 
     consideration and determination of the question of a stay.
       ``(4) Disposition of review; cancellation, reduction, or 
     remission of sanction.--
       ``(A) In general.--In any proceeding to review a final 
     disciplinary sanction imposed by the Board on a public 
     accounting firm registered with the Board or a person 
     associated with such a firm, after notice and opportunity for 
     hearing (which hearing may consist solely of consideration of 
     the record before the Board and opportunity for the 
     presentation of supporting reasons to affirm, modify, or set 
     aside the sanction)--
       ``(i) if the Commission finds that--

       ``(I) such firm or person associated with such a firm has 
     engaged in such acts or practices, or has omitted such acts, 
     as the Board has found them to have engaged in or omitted;
       ``(II) such acts, practices, or omissions, are in violation 
     of such provisions of the Federal securities laws, the rules 
     or regulations issued thereunder, the rules adopted by the 
     Board, or professional standards as have been specified in 
     the determination of the Board; and
       ``(III) such provisions were applied in a manner consistent 
     with the purposes of the Federal securities laws;

     the Commission, by order, shall so declare and, as 
     appropriate, affirm the sanction imposed by the Board, modify 
     the sanction in accordance with paragraph (2), or remand to 
     the Board for further proceedings; or
       ``(ii) if the Commission does not make the findings under 
     clause (i), it shall, by order, set aside the sanction 
     imposed by the Board and, if appropriate, remand to the Board 
     for further proceedings.
       ``(B) Cancellation, reduction, or remission of sanction.--
     If the Commission, having due regard for the public interest 
     and the protection of investors, finds after a proceeding in 
     accordance with subparagraph (A) that a sanction imposed by 
     the Board upon a firm or person associated with a firm 
     imposes any burden on competition not necessary or 
     appropriate in furtherance of the purposes of the Federal 
     securities laws or is excessive or oppressive, the Commission 
     may cancel, reduce, or require the remission of such 
     sanction.
       ``(5) Compliance with rules and regulations.--
       ``(A) Duties of board.--The Board shall--
       ``(i) comply with the Federal securities laws, the rules 
     and regulations issued thereunder, and its own rules; and
       ``(ii) subject to subparagraph (B) and the rules 
     thereunder, absent reasonable justification or excuse, 
     enforce compliance with such provisions and with professional 
     standards by public accounting firms registered with the 
     Board and persons associated with such firms.
       ``(B) Relief by commission.--The Commission, by rule, 
     consistent with the public interest, the protection of 
     investors, and the other purposes of the Federal securities 
     laws, may relieve the Board of any responsibility under this 
     section to enforce compliance with any specified provision of 
     the Federal securities laws, the rules or regulations issued 
     thereunder, or professional standards by any public 
     accounting firm registered with the Board or person 
     associated with such a firm, or any class of such firms or 
     persons associated with such a firm.
       ``(6) Censure; other sanctions.--
       ``(A) In general.--The Commission is authorized, by order, 
     if in its opinion such action is necessary or appropriate in 
     the public interest, for the protection of investors, or 
     otherwise in furtherance of the purposes of the Federal 
     securities laws, to censure or impose limitations upon the 
     activities, functions, and operations of the Board, if the 
     Commission finds, on the record after notice and opportunity 
     for hearing, that the Board has--
       ``(i) violated or is unable to comply with any provision of 
     the Federal securities laws, the rules or regulations issued 
     thereunder, or its own rules; or
       ``(ii) without reasonable justification or excuse, has 
     failed to enforce compliance with any such provision or any 
     professional standard by a public accounting firm registered 
     with the Board or a person associated with such a firm.
       ``(B) Removal from office.--The Commission is authorized, 
     by order, if in its opinion such action is necessary or 
     appropriate, in the public interest for the protection of 
     investors, or otherwise in furtherance of the purposes of the 
     Federal securities laws, to remove from office or censure any 
     member of the Board, if the Commission finds, on the record 
     after notice and opportunity for hearing, that such member 
     has--
       ``(i) willfully violated any provision of the Federal 
     securities laws, the rules or regulations issued thereunder, 
     or the rules of the Board;
       ``(ii) willfully abused such member's authority; or
       ``(iii) without reasonable justification or excuse, failed 
     to enforce compliance with any such provision or any 
     professional standard by any public accounting firm 
     registered with the Board or any person associated with such 
     a firm.
       ``(i) Foreign Accounting Firms.--A foreign public 
     accounting firm that furnishes accountant's reports on any 
     financial statement, report, or other document required to be 
     filed with the Commission under any Federal securities law 
     shall, with respect to those reports, be subject to the 
     provisions of this section in the same manner and to the same 
     extent as a domestic public accounting firm. The Commission 
     may, by rule, regulation, or order and as it deems consistent 
     with the public interest and the protection of investors, 
     either unconditionally or upon specified terms and 
     conditions, exempt from one or more provisions of this 
     section any foreign public accounting firm. Registration 
     pursuant to this subsection shall not, by itself, provide a 
     basis for subjecting foreign accounting firms to the 
     jurisdiction of the Federal or State courts.
       ``(j) Relationship With Antitrust Laws.--
       ``(1) Treatment under antitrust laws.--In no case shall the 
     Board, any member thereof, any public accounting firm 
     registered with the Board, or any person associated with such 
     a firm be subject to liability under any antitrust law for 
     any act of the Board or any failure to act by the Board.
       ``(2) Definition.--For purposes of this subsection, the 
     term `antitrust law' means the Federal Trade Commission Act 
     and each statute defined by section 4 thereof as `Antitrust 
     Acts' and all amendments to such Act and such statutes and 
     any other Federal Acts or State laws in pari materia.
       ``(k) Applicability of Auditing Principles.--Each audit 
     required pursuant to this title of an issuer's financial 
     statements by an independent public accountant shall be 
     conducted in accordance with generally accepted auditing 
     standards, as may be modified or supplemented from time-to-
     time by the Commission. The Commission may defer to 
     professional standards promulgated by private organizations 
     that are generally accepted by the accounting or auditing 
     profession.
       ``(l) Commission Authority Not Impaired.--Nothing in this 
     section shall be construed to impair or limit the 
     Commission's authority--
       ``(1) over the accounting profession, accounting firms, or 
     any persons associated with such firms;
       ``(2) to set standards for accounting practices, derived 
     from other provisions of the Federal securities laws or the 
     rules or regulations issued thereunder; or
       ``(3) to take, on its own initiative, legal, 
     administrative, or disciplinary action against any public 
     accounting firm registered with the Board or any person 
     associated with such a firm.''.
                                 ______


                  KOHL (AND OTHERS) AMENDMENT NO. 1930

  Mr. KOHL (for himself, Mr. Cohen, and Mrs. Murray) proposed an 
amendment to the bill, S. 687, supra; as follows:

  At the appropriate place add the following new title:

   TITLE    --PROTECTIVE ORDERS AND SEALING OF CASES AND SETTLEMENTS 
                  RELATING TO PUBLIC HEALTH OR SAFETY

     SEC.   . PROTECTIVE ORDERS AND SEALING OF CASES AND 
                   SETTLEMENTS RELATING TO PUBLIC HEALTH OR 
                   SAFETY.

       (a) Short Title.--This title may be cited as the ``Sunshine 
     in Litigation Act of 1994''.
       (B) Protective Orders and Sealing of Cases and Settlements 
     Relating to Public Health or Safety.--Chapter 111 of title 
     28, United States Code, is amended by adding at the end 
     thereof the following new section:

     ``Sec. 1659. Protective orders and sealing of cases and 
       settlements relating to public health or safety

       ``(a)(1) A court shall enter an order under rule 26(c) of 
     the Federal Rules of Civil Procedure restricting the 
     disclosure of information obtained through discovery or an 
     order restricting access to court records in a civil case 
     only after making particularized findings of fact that--
       ``(A) such order would not restrict the disclosure of 
     information which is relevant to the protection of public 
     health or safety; or
       ``(B)(i) the public interest in disclosure of potential 
     health or safety hazards is clearly outweighed by a specific 
     and substantial interest in maintaining the confidentiality 
     of the information or records in question; and
       ``(ii) the requested protective order is no broader than 
     necessary to protect the privacy interest asserted.
       ``(2) No order entered in accordance with the provisions of 
     paragraph (1) shall continue in effect after the entry of 
     final judgment, unless at or after such entry the court makes 
     a separate particularized finding of fact that the 
     requirements of paragraph (1) (A) or (B) have been met.
       ``(b) The party who is the proponent for the entry of an 
     order, as provided under this section, shall have the burden 
     of proof in obtaining such an order.
       ``(c)(1) No agreement between or among parties in a civil 
     action filed in a court of the United States may contain a 
     provision that prohibits or otherwise restricts a party from 
     disclosing any information relevant to such civil action to 
     any Federal or State agency with authority to enforce laws 
     regulating an activity relating to such information.
       ``(2) Any disclosure of information to a Federal or State 
     agency as described under paragraph (1) shall be confidential 
     to the extent provided by law.''.
       (c) Technical and Conforming Amendment.--The table of 
     sections for chapter 111 of title 28, United States Code, is 
     amended by adding after the item relating to section 1658 the 
     following:

``1659. Protective orders and sealing of cases and settlements relating 
              to public health or safety.''.

       (d) Effective Date.--The amendments made by this title 
     shall take effect 30 days after the date of the enactment of 
     this Act and shall apply only to orders entered in civil 
     actions or agreements entered into on or after such date.
                                 ______


                     1995 DEFENSE AUTHORIZATION ACT

                                 ______


                 WARNER (AND OTHERS) AMENDMENT NO. 1931

  (Ordered to lie on the table.)
  Mr. WARNER (for himself, Mr. Sarbanes, Mr. Harkin, Mr. Cochran, Mr. 
Gorton, Mr. D'Amato, Mr. Bingaman, and Mr. Smith) submitted an 
amendment intended to be proposed by them to the bill (S. 2182) to 
authorize appropriations for military activities of the Department of 
Defense, for military construction, and for defense activities of the 
Department of Energy, to prescribe personnel strengths for such fiscal 
year for the Armed Forces, and for other purposes; as follows:

       At the appropriate place in the bill, insert the following 
     section:

     SEC.   . ELIMINATION OF DISPARITY BETWEEN EFFECTIVE DATES FOR 
                   MILITARY AND CIVILIAN RETIREE COST-OF-LIVING 
                   ADJUSTMENTS FOR FISCAL YEAR 1995.

       (a) In General.--The fiscal year 1995 increase in military 
     retired pay shall (notwithstanding subparagraph (B) of 
     section 1401a(b)(2) of title 10, United States Code) first be 
     payable as part of such retired pay for the month of March 
     1995.
       (b) Definitions.--For the purposes of subsection (a):
       (1) The term ``fiscal year 1995 increase in military 
     retired pay'' means the increase in retired pay that, 
     pursuant to paragraph (1) of section 1401a(b) of title 10, 
     United States Code, becomes effective on December 1, 1994.
       (2) The term ``retired pay'' includes retainer pay.
       (c) Limitation.--Subsection (a) shall be effective only if 
     there is appropriated to the Department of Defense Military 
     Retirement Fund (in an Act making appropriations for the 
     Department of Defense for fiscal year 1995 that is enacted 
     before March 1, 1995) such amount as is necessary to offset 
     increased outlays to be made from that fund during fiscal 
     year 1995 by reason of the provisions of subsection (a).
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated for fiscal year 1995 to the Department of 
     Defense Military Retirement Fund the sum of $376,000,000 to 
     offset increased outlays to be made from that fund during 
     fiscal year 1995 by reason of the provisions of subsection 
     (a).

                          ____________________