[Congressional Record Volume 141, Number 1 (Wednesday, January 4, 1995)]
[Senate]
[Pages S53-S171]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

                            

[[Page S53]]

Vol. 141         WASHINGTON, WEDNESDAY, JANUARY 4, 1995  No. 1--Part II
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                                 Senate




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. KEMPTHORNE (for himself, Mr. Dole, Mr. Glenn, Mr. Roth, 
        Mr. Domenici, Mr. Exon, Mr. Coverdell, Mr. Brown, Mr. Burns, 
        Mr. Craig, Mr. Faircloth, Mr. Gregg, Mr. Bennett, Mrs. 
        Hutchison, Mr. Abraham, Mr. Ashcroft, Mr. Bond, Mr. Breaux, Mr. 
        Campbell, and Mr. Coats):
  S. 1. A bill to curb the practice of imposing unfunded Federal 
mandates on States and local governments; to strengthen the partnership 
between the Federal Government and State, local, and tribal 
governments; to end the imposition, in the absence of full 
consideration by Congress, of Federal mandates on State, local, and 
tribal governments without adequate funding, in a manner that may 
displace other essential governmental priorities; and to ensure that 
the Federal Government pays the costs incurred by those governments in 
complying with certain requirements under Federal statutes and 
regulations; and for other purposes; to the Committee on the Budget and 
the Committee on Governmental Affairs, jointly, pursuant to the order 
of August 4, 1977, with instructions that if one committee reports, the 
other committees have 30 days to report or be discharged.


                      unfunded mandate reform act

  Mr. KEMPTHORNE. Mr. President, I would like to make a few comments 
concerning Senate bill 1. I appreciate greatly what the majority 
leader, Senator Dole, stated about Senate bill 1 and the fact he has 
designated that, in fact, Senate bill 1.
  All across America, literally thousands of mayors and county 
commissioners, school board members, and Governors are absolutely 
delighted with the fact that this reform measure has been selected by 
the majority leader, Senator Dole, in a bipartisan fashion to deal with 
this dilemma of unfunded Federal mandates.
  For State and local officials, Senate bill 1 represents the reform 
that they have wanted for years concerning unfunded Federal mandates. 
Senate bill 1 also represents, Mr. President, hope, hope that finally 
Congress is going to craft that sort of Federal partnership that we 
talk about in acknowledging that local and State governments are 
Federal partners with this Government.
  Senate bill 1 also offers to business men and women relief from 
mandates and regulations imposed by Congress and the Federal agencies 
without knowing the costs. The issue of who best governs and decides 
local issues is at the heart of the unfunded mandate debate, and right 
now, Congress does not know the costs nor does it pay for these Federal 
mandates.
  Because Congress passes legislation without ever knowing the costs or 
consequences to State and local governments, the number and costs of 
these unfunded mandates continue to escalate. As mayors and Governors 
struggle to find the money to pay for Washington dictates, they have 
been sending a strong message to Washington, DC. Their message was 
simple but it was continuous. Their message has been that unfunded 
Federal mandates are wrong. They have been saying that they keep us 
from putting policemen on our streets; they reduce classroom 
instruction in our schools; they prevent us from balancing our budgets.
  I found so interesting the comment by the Democrat Governor of 
Nebraska, Ben Nelson, who is a friend of mine, when he said, ``I was 
elected Governor, not the administrator of Federal programs for 
Nebraska.''
  I think that sums up what has been happening. We have overstepped our 
bounds in our regulations to our State and local governments.
  Congress is getting the message, and where once you in Washington did 
not know what a funded mandate was, fighting unfunded mandates is S. 1, 
front and center. We are going to deal with it.
  I am proud to join with Senator Dole and with Senator Glenn and 
Senator Roth and Senator Domenici and Senator Exon, and a number of 
other Senators, in cosponsoring this legislation so that we now have a 
majority of Senators who are cosponsors of S. 1 the first day of this 
104th Congress.
  This legislation forces Congress to know mandate policy. It requires 
Congress to fund mandates imposed on State and local governments. If we 
do not, they can be ruled out of order and a rollcall vote will decide 
whether the Senate should consider unfunded mandate legislation. To 
quote Victor Ashe, mayor of Knoxville, ``S. 1 is a serious and tough 
mandate in its form and will begin to restore the partnership which the 
founders of this Nation intended to exist between the Federal 
Government and State and local governments.''
  S. 1 uses the same principles guiding last year's legislation 
unanimously approved by the Senate Governmental Affairs Committee and 
cosponsored by 67 Senators. Specifically, this new bill creates a point 
of order that requires any legislation imposing a mandate greater than 
$50 million on State and local governments must have a Congressional 
Budget Office estimate of the total cost of the mandate. It further 
requires that the legislation must include the funding to pay for the 
costs of the mandate through direct funding, new taxes, or 
appropriations. If the mandate is to be paid for by the appropriations 
bill, then the money to pay all direct costs in compliance with the 
mandate must be appropriated. Or, if it is not fully funded, then one 
of two 
 [[Page S54]] things must happen: Either the mandate does not take 
effect or the mandate must be scaled back to a level commensurate with 
the reduced level of the appropriation. If those elements are not in 
the bill, the imposed mandate-making legislation is out of order.
  S. 1 also requires that our partners in local and State government be 
consulted by the Congressional Budget Office. Additionally, legislation 
imposing mandates greater than $200 million on the private sector must 
have a CBO mandate cost estimate or be ruled out of order. These 
provisions also apply to amendments in conference reports where the 
price tag of the legislation is often increased.
  Mr. President, I wish to emphasize that this legislation is not 
intended to stop compliance with mandates and regulations already in 
place. The goal is to stop the imposition of future unfunded Federal 
mandates, to stop Congress from passing laws and then requiring local 
and State governments to pay for them. It is not right for Federal 
programs to be paid for by local property taxes.
  Mr. President, to gauge the impact that these new laws are having, 
one only needs to look at the fallout in the National Voter 
Registration Act of 1993, which passed the Congress last session. 
Today, 13 States have refused to obey this motor-voter bill, and one 
State, California, is suing the Federal Government because of the cost 
of the tab they have to pay. Governor Pete Wilson says that this motor-
voter provision violates the 10th amendment, which Senator Dole 
referenced so eloquently in his comments.
  I think there is something ironic and symbolic, Mr. President, in the 
fact that the number of States currently objecting to this Federal 
mandate is 13, the same number of those original 13 States that, 
through their vision, combined to create the United States of America, 
those visionaries who were bound to protect the intrusive behavior of 
the Federal Government. This legislation is a great step forward in 
carrying out what the Founding Fathers intended.
  We have worked closely, too, with our colleagues in the House. A 
companion bill has been developed in the House. I am confident that 
once the Senate passes this legislation, it will pass in the House of 
Representatives.
  Mr. President, on November 8, when we had the election, there were a 
series of messages that were sent. The people said they did not want 
business as usual from Congress, and they also said, I think, that they 
do not want us to get entrenched in partisan politics because we do not 
get things done that really need to get done. They said they want us to 
work for what is right for this country, and that is why we must 
endeavor to find opportunities for bipartisan support.
  This legislation has that bipartisan support. I wish to thank Senator 
Glenn and Senator Roth for their leadership and partnership in this 
important piece of legislation.
  I wish to note that last session, when we were not in the majority, 
Senator Glenn was the chairman of the Governmental Affairs Committee. 
When unfunded Federal mandates was not a top-of-the-mind response, he 
worked with us and forged some progressive opportunities for us to come 
forward with what ultimately now is S. 1. He and his staff, Sebastian 
O'Kelly, Larry Novey, and Len Weiss, have been very helpful in all of 
this; Senator Roth, who throughout this recess has been working with 
us, and his staff, Frank Polk and John Mercer. That is the sort of 
bipartisan effort I think we want. Additionally, Senator Domenici, the 
chairman of the Budget Committee, and Senator Exon, the ranking member, 
have been invaluable resources in getting us to this point with S. 1.
  I also want to acknowledge Senator Byron Dorgan for his effort in 
authorizing the private-sector point of order that is included in this 
bill, and Senators Domenici and Nickles for their efforts to include in 
this bill provisions directing Federal agencies to analyze and report 
the effects that imposed regulations will have on the Nation's economy 
and productivity and international competitiveness.
  Mr. President, this legislation already has the strong endorsement of 
the U.S. Conference of Mayors, National Association of Counties, 
National League of Cities, the National Governors Association, the 
Council of State Governments, the National Conference of State 
Legislatures, the National School Boards Association, and, I am proud 
to say, the U.S. Chamber of Commerce, the National Federation of 
Independent Business, and the National Retail Federation--not only 
bipartisan, but it is public and private sectors working together in 
true partnership fashion.
  Mr. GLENN. Mr. President, I know the time is short. The Senator was 
giving a litany of those who worked hard on this, including myself, but 
he left himself out. No one has stuck to this any more than he has.
  I know last year, when I was chairman of the Governmental Affairs 
Committee, if we went more than a week without having something on the 
schedule over there on this subject, he was on my back about it, and 
properly so. He has stuck with this. He has traveled the whole country 
meeting with this group of seven. He has been a real sparkplug on this, 
and deserves a tremendous amount of credit himself. And while I may 
make some comments in a little bit, while I was in the Chamber I wanted 
to make sure he got some recognition on this, too.
  I appreciate his earlier comments very much. I thank the Chair.
  Mr. KEMPTHORNE. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  I ask unanimous consent that the letters of endorsement be made a 
part of the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                  S. 1
       Be it enacted by the Senate and House of 
     Representatives of the United States of America in 
     Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Unfunded Mandate Reform Act 
     of 1995''.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to strengthen the partnership between the Federal 
     Government and States, local governments, and tribal 
     governments;
       (2) to end the imposition, in the absence of full 
     consideration by Congress, of Federal mandates on States, 
     local governments, and tribal governments without adequate 
     Federal funding, in a manner that may displace other 
     essential State, local, and tribal governmental priorities;
       (3) to assist Congress in its consideration of proposed 
     legislation establishing or revising Federal programs 
     containing Federal mandates affecting States, local 
     governments, tribal governments, and the private sector by--
       (A) providing for the development of information about the 
     nature and size of mandates in proposed legislation; and
       (B) establishing a mechanism to bring such information to 
     the attention of the Senate and the House of Representatives 
     before the Senate and the House of Representatives vote on 
     proposed legislation;
       (4) to promote informed and deliberate decisions by 
     Congress on the appropriateness of Federal mandates in any 
     particular instance;
       (5) to require that Congress consider whether to provide 
     funding to assist State, local, and tribal governments in 
     complying with Federal mandates, to require analyses of the 
     impact of private sector mandates, and through the 
     dissemination of that information provide informed and 
     deliberate decisions by Congress and Federal agencies and 
     retain competitive balance between the public and private 
     sectors;
       (6) to establish a point-of-order vote on the consideration 
     in the Senate and House of Representatives of legislation 
     containing significant Federal mandates; and
       (7) to assist Federal agencies in their consideration of 
     proposed regulations affecting States, local governments, and 
     tribal governments, by--
       (A) requiring that Federal agencies develop a process to 
     enable the elected and other officials of States, local 
     governments, and tribal governments to provide input when 
     Federal agencies are developing regulations; and
       (B) requiring that Federal agencies prepare and consider 
     better estimates of the budgetary impact of regulations 
     containing Federal mandates upon States, local governments, 
     and tribal governments before adopting such regulations, and 
     ensuring that small governments are given special 
     consideration in that process.

     SEC. 3. DEFINITIONS.

       (a) In General.--For purposes of this Act--
       (1) the terms defined under paragraphs (11) through (21) of 
     section 3 of the Congressional Budget and Impoundment Control 
     Act of 1974 (as added by subsection (b) of this section) 
     shall have the meanings as so defined; and
       (2) the term ``Director'' means the Director of the 
     Congressional Budget Office.
       (b) Congressional Budget and Impoundment Control Act of 
     1974.--Section 3 of the Congressional Budget and Impoundment 
      [[Page S55]] Control Act of 1974 is amended by adding at the 
     end thereof the following new paragraphs:
       ``(11) The term `Federal intergovernmental mandate' means--
       ``(A) any provision in legislation, statute, or regulation 
     that--
       ``(i) would impose an enforceable duty upon States, local 
     governments, or tribal governments, except--

       ``(I) a condition of Federal assistance or
       ``(II) a duty arising from participation in a voluntary 
     Federal program, except as provided in subparagraph (B)); or

       ``(ii) would reduce or eliminate the amount of 
     authorization of appropriations for Federal financial 
     assistance that would be provided to States, local 
     governments, or tribal governments for the purpose of 
     complying with any such previously imposed duty unless such 
     duty is reduced or eliminated by a corresponding amount; or
       ``(B) any provision in legislation, statute, or regulation 
     that relates to a then-existing Federal program under which 
     $500,000,000 or more is provided annually to States, local 
     governments, and tribal governments under entitlement 
     authority, if the provision--
       ``(i)(I) would increase the stringency of conditions of 
     assistance to States, local governments, or tribal 
     governments under the program; or
       ``(II) would place caps upon, or otherwise decrease, the 
     Federal Government's responsibility to provide funding to 
     States, local governments, or tribal governments under the 
     program; and
       ``(ii) the States, local governments, or tribal governments 
     that participate in the Federal program lack authority under 
     that program to amend their financial or programmatic 
     responsibilities to continue providing required services that 
     are affected by the legislation, statute or regulation.
       ``(12) The term `Federal private sector mandate' means any 
     provision in legislation, statute, or regulation that--
       ``(A) would impose an enforceable duty upon the private 
     sector except--
       ``(i) a condition of Federal assistance; or
       ``(ii) a duty arising from participation in a voluntary 
     Federal program; or
       ``(B) would reduce or eliminate the amount of authorization 
     of appropriations for Federal financial assistance that will 
     be provided to the private sector for the purposes of 
     ensuring compliance with such duty.
       ``(13) The term `Federal mandate' means a Federal 
     intergovernmental mandate or a Federal private sector 
     mandate, as defined in paragraphs (11) and (12).
       ``(14) The terms `Federal mandate direct costs' and `direct 
     costs'--
       ``(A)(i) in the case of a Federal intergovernmental 
     mandate, mean the aggregate estimated amounts that all 
     States, local governments, and tribal governments would be 
     required to spend in order to comply with the Federal 
     intergovernmental mandate; or
       ``(ii) in the case of a provision referred to in paragraph 
     (11)(A)(ii), mean the amount of Federal financial assistance 
     eliminated or reduced.
       ``(B) in the case of a Federal private sector mandate, mean 
     the aggregate estimated amounts that the private sector will 
     be required to spend in order to comply with the Federal 
     private sector mandate;
       ``(C) shall not include--
       ``(i) estimated amounts that the States, local governments, 
     and tribal governments ( in the case of a Federal 
     intergovernmental mandate) or the private sector (in the case 
     of a Federal private sector mandate) would spend--

       ``(I) to comply with or carry out all applicable Federal, 
     State, local, and tribal laws and regulations in effect at 
     the time of the adoption of the Federal mandate for the same 
     activity as is affected by that Federal mandate; or
       ``(II) to comply with or carry out State, local 
     governmental, and tribal governmental programs, or private-
     sector business or other activities in effect at the time of 
     the adoption of the Federal mandate for the same activity as 
     is affected by that mandate; or

       ``(ii) expenditures to the extent that such expenditures 
     will be offset by any direct savings to the States, local 
     governments, and tribal governments, or by the private 
     sector, as a result of--

       ``(I) compliance with the Federal mandate; or
       ``(II) other changes in Federal law or regulation that are 
     enacted or adopted in the same bill or joint resolution or 
     proposed or final Federal regulation and that govern the same 
     activity as is affected by the Federal mandate; and

       ``(D) shall be determined on the assumption that State, 
     local, and tribal governments, and the private sector will 
     take all reasonable steps necessary to mitigate the costs 
     resulting from the Federal mandate, and will comply with 
     applicable standards of practice and conduct established by 
     recognized professional or trade associations. Reasonable 
     steps to mitigate the costs shall not include increases in 
     State, local, or tribal taxes or fees.
       ``(15) The term `amount' means the amount of budget 
     authority for any Federal grant assistance program or any 
     Federal program providing loan guarantees or direct loans.
       ``(16) The term `private sector' means individuals, 
     partnerships, associations, corporations, business trusts, or 
     legal representatives, organized groups of individuals, and 
     educational and other nonprofit institutions.
       ``(17) The term `local government' has the same meaning as 
     in section 6501(6) of title 31, United States Code.
       ``(18) The term `tribal government' means any Indian tribe, 
     band, nation, or other organized group or community, 
     including any Alaska Native village or regional or village 
     corporation as defined in or established pursuant to the 
     Alaska Native Claims Settlement Act (83 Stat. 688; 43 U.S.C. 
     1601 et seq.) which is recognized as eligible for the special 
     programs and services provided by the United States to 
     Indians because of their special status as Indians.
       ``(19) The term `small government' means any small 
     governmental jurisdictions defined in section 601(5) of title 
     5, United States Code, and any tribal government.
       ``(20) The term `State' has the same meaning as in section 
     6501(9) of title 31, United State Code.''
       ``(21) The term `agency' has the meaning as defined in 
     section 551(1) of title 5, United States Code, but does not 
     include independent regulatory agencies, as defined in 
     section 3502(10) of title 44, United States Code.
       ``(22) The term `regulation' or `rule' has the meaning of 
     ``rule'' as defined in section 601(2) of title 5, United 
     States Code.''.

     SEC. 4. EXCLUSIONS.

       The provisions of this Act and the amendments made by this 
     Act shall not apply to any provision in a bill or joint 
     resolution before Congress and any provision in a proposed or 
     final Federal regulation that--
       (1) enforces constitutional rights of individuals;
       (2) establishes or enforces any statutory rights that 
     prohibit discrimination on the basis of race, religion, 
     gender, national origin, or handicapped or disability status;
       (3) requires compliance with accounting and auditing 
     procedures with respect to grants or other money or property 
     provided by the United States Government;
       (4) provides for emergency assistance or relief at the 
     request of any State, local, or tribal government or any 
     official of a State, local, or tribal government;
       (5) is necessary for the national security or the 
     ratification or implementation of international treaty 
     obligations; or
       (6) the President designates as emergency legislation and 
     that the Congress so designates in statute.

     SEC. 5. AGENCY ASSISTANCE.

       Each agency shall provide to the Director of the 
     Congressional Budget Office such information and assistance 
     as the Director may reasonably request to assist the Director 
     in carrying out this Act.
             TITLE I--LEGISLATIVE ACCOUNTABILITY AND REFORM

     SEC. 101. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM.

       (a) In General.--Title IV of the Congressional Budget and 
     Impoundment Control Act of 1974 is amended by adding at the 
     end thereof the following new section:

     ``SEC. 408. LEGISLATIVE MANDATE ACCOUNTABILITY AND REFORM.

       ``(a) Duties of Congressional Committees.--
       ``(1) In general.--When a committee of authorization of the 
     Senate or the House of Representatives reports a bill or 
     joint resolution of public character that includes any 
     Federal mandate, the report of the committee accompanying the 
     bill or joint resolution shall contain the information 
     required by paragraphs (3) and (4).
       ``(2) Submission of bills to the director.--When a 
     committee of authorization of the Senate or the House of 
     Representatives orders reported a bill or joint resolution of 
     a public character, the committee shall promptly provide the 
     bill or joint resolution to the Director of the Congressional 
     Budget Office and shall identify to the Director any Federal 
     mandates contained in the bill or resolution.
       ``(3) Reports on federal mandates.--Each report described 
     under paragraph (1) shall contain--
       ``(A) an identification and description of any Federal 
     mandates in the bill or joint resolution, including the 
     expected direct costs to State, local, and tribal 
     governments, and to the private sector, required to comply 
     with the Federal mandates;
       ``(B) a qualitative, and if practicable, a quantitative 
     assessment of costs and benefits anticipated from the Federal 
     mandates (including the effects on health and safety and the 
     protection of the natural environment); and
       ``(C) a statement of the degree to which a Federal mandate 
     affects both the public and private sectors and the extent to 
     which Federal payment of public sector costs would affect the 
     competitive balance between State, local, or tribal 
     governments and privately owned businesses.
       ``(4) Intergovernmental mandates.--If any of the Federal 
     mandates in the bill or joint resolution are Federal 
     intergovernmental mandates, the report required under 
     paragraph (1) shall also contain--
       ``(A)(i) a statement of the amount, if any, of increase or 
     decrease in authorization of appropriations under existing 
     Federal financial assistance programs, or of authorization of 
     appropriations for new Federal financial assistance, provided 
     by the bill or joint resolution and usable for activities of 
     State, local, or tribal governments subject to the Federal 
     intergovernmental mandates; and
       ``(ii) a statement of whether the committee intends that 
     the Federal intergovernmental mandates be partly or entirely 
     unfunded, and if so, the reasons for that intention; and
     [[Page S56]]   ``(B) any existing sources of Federal 
     assistance in addition to those identified in subparagraph 
     (A) that may assist State, local, and tribal governments in 
     meeting the direct costs of the Federal intergovernmental 
     mandates.
       ``(5) Preemption clarification and information.--When a 
     committee of authorization of the Senate or the House of 
     Representatives reports a bill or joint resolution of public 
     character, the committee report accompanying the bill or 
     joint resolution shall contain, if relevant to the bill or 
     joint resolution, an explicit statement on the extent to 
     which the bill or joint resolution preempts any State, local, 
     or tribal law, and, if so, an explanation of the reasons for 
     such preemption.
       ``(6) Publication of statement from the director.--
       ``(A) Upon receiving a statement (including any 
     supplemental statement) from the Director under subsection 
     (b)(1), a committee of the Senate or the House of 
     Representatives shall publish the statement in the committee 
     report accompanying the bill or joint resolution to which the 
     statement relates if the statement is available at the time 
     the report is printed.
       ``(B) If the statement is not published in the report, or 
     if the bill or joint resolution to which the statement 
     relates is expected to be considered by the Senate or the 
     House of Representatives before the report is published, the 
     committee shall cause the statement, or a summary thereof, to 
     be published in the Congressional Record in advance of floor 
     consideration of the bill or joint resolution.
       ``(b) Duties of the Director.--
       ``(1) Statements on bills and joint resolutions other than 
     appropriations bills and joint resolutions.--
       ``(A) Federal intergovernmental mandates in reported bills 
     and resolutions.--For each bill or joint resolution of a 
     public character reported by any committee of authorization 
     of the Senate or the House of Representatives, the Director 
     of the Congressional Budget Office shall prepare and submit 
     to the committee a statement as follows:
       ``(i) If the Director estimates that the direct cost of all 
     Federal intergovernmental mandates in the bill or joint 
     resolution will equal or exceed $50,000,000 (adjusted 
     annually for inflation) in the fiscal year in which any 
     Federal intergovernmental mandate in the bill or joint 
     resolution (or in any necessary implementing regulation) 
     would first be effective or in any of the 4 fiscal years 
     following such fiscal year, the Director shall so state, 
     specify the estimate, and briefly explain the basis of the 
     estimate.
       ``(ii) The estimate required under clause (i) shall include 
     estimates (and brief explanations of the basis of the 
     estimates) of--

       ``(I) the total amount of direct cost of complying with the 
     Federal intergovernmental mandates in the bill or joint 
     resolution; and
       ``(II) the amount, if any, of increase in authorization of 
     appropriations under existing Federal financial assistance 
     programs, or of authorization of appropriations for new 
     Federal financial assistance, provided by the bill or joint 
     resolution and usable by State, local, or tribal governments 
     for activities subject to the Federal intergovernmental 
     mandates.

       ``(B) Federal private sector mandates in reported bills and 
     joint resolutions.--For each bill or joint resolution of a 
     public character reported by any committees of authorization 
     of the Senate or the House of Representatives, the Director 
     of the Congressional Budget Office shall prepare and submit 
     to the committee a statement as follows:
       ``(i) If the Director estimates that the direct cost of all 
     Federal private sector mandates in the bill or joint 
     resolution will equal or exceed $200,000,000 (adjusted 
     annually for inflation) in the fiscal year in which any 
     Federal private sector mandate in the bill or joint 
     resolution (or in any necessary implementing regulation) 
     would first be effective or in any of the 4 fiscal years 
     following such fiscal year, the Director shall so state, 
     specify the estimate, and briefly explain the basis of the 
     estimate.
       ``(ii) Estimates required under this subparagraph shall 
     include estimates (and a brief explanation of the basis of 
     the estimates) of--

       ``(I) the total amount of direct costs of complying with 
     the Federal private sector mandates in the bill or joint 
     resolution; and
       ``(II) the amount, if any, of increase in authorization of 
     appropriations under existing Federal financial assistance 
     programs, or of authorization of appropriations for new 
     Federal financial assistance, provided by the bill or joint 
     resolution usable by the private sector for the activities 
     subject to the Federal private sector mandates.

       ``(iii) If the Director determines that it is not feasible 
     to make a reasonable estimate that would be required under 
     clauses (i) and (ii), the Director shall not make the 
     estimate, but shall report in the statement that the 
     reasonable estimate cannot be made and shall include the 
     reasons for that determination in the statement.
       ``(C) Legislation falling below the direct costs 
     thresholds.--If the Director estimates that the direct costs 
     of a Federal mandate will not equal or exceed the thresholds 
     specified in paragraphs (A) and (B), the Director shall so 
     state and shall briefly explain the basis of the estimate.
       ``(c) Legislation Subject to Point of Order in the 
     Senate.--
       ``(1) In general.--It shall not be in order in the Senate 
     to consider--
       ``(A) any bill or joint resolution that is reported by a 
     committee unless the committee has published a statement of 
     the Director on the direct costs of Federal mandates in 
     accordance with subsection (a)(6) before such consideration; 
     and
       ``(B) any bill, joint resolution, amendment, motion, or 
     conference report that would increase the direct costs of 
     Federal intergovernmental mandates by an amount that causes 
     the thresholds specified in subsection (b)(1)(A)(i) to be 
     exceeded, unless--
       ``(i) the bill, joint resolution, amendment, motion, or 
     conference report provides direct spending authority for each 
     fiscal year for the Federal intergovernmental mandates 
     included in the bill, joint resolution, amendment, motion, or 
     conference report in an amount that is equal to the estimated 
     direct costs of such mandate;
       ``(ii) the bill, joint resolution, amendment, motion, or 
     conference report provides an increase in receipts and an 
     increase in direct spending authority for each fiscal year 
     for the Federal intergovernmental mandates included in the 
     bill, joint resolution, amendment, motion, or conference 
     report in an amount equal to the estimated direct costs of 
     such mandate; or
       ``(iii) the bill, joint resolution, amendment, motion, or 
     conference report includes an authorization for 
     appropriations in an amount equal to the estimated direct 
     costs of such mandate, and--

       ``(I) identifies a specific dollar amount estimate of the 
     full direct costs of the mandate for each year or other 
     period during which the mandate shall be in effect under the 
     bill, joint resolution, amendment, motion or conference 
     report, and such estimate is consistent with the estimate 
     determined under paragraph (3) for each fiscal year;
       ``(II) identifies any appropriation bill that is expected 
     to provide for Federal funding of the direct cost referred to 
     under subclause (IV)(aa);
       ``(III) identifies the minimum amount that must be 
     appropriated in each appropriations bill referred to in 
     subclause (II), in order to provide for full Federal funding 
     of the direct costs referred to in subclause (I); and
       ``(IV)(aa) designates a responsible Federal agency and 
     establishes criteria and procedures under which such agency 
     shall implement less costly programmatic and financial 
     responsibilities of State, local, and tribal governments in 
     meeting the objectives of the mandate, to the extent that an 
     appropriation Act does not provide for the estimated direct 
     costs of such mandate as set forth under subclause (III); or
       ``(bb) designates a responsible Federal agency and 
     establishes criteria and procedures to direct that, if an 
     appropriation Act does not provide for the estimated direct 
     costs of such mandate as set forth under subclause (III), 
     such agency shall declare such mandate to be ineffective as 
     of October 1 of the fiscal year for which the appropriation 
     is not at least equal to the direct costs of the mandate.

       ``(2) Rule of construction.--The provisions of paragraph 
     (1)(B)(iii)(IV)(aa) shall not be construed to prohibit or 
     otherwise restrict a State, local, or tribal government from 
     voluntarily electing to remain subject to the original 
     Federal intergovernmental mandate, complying with the 
     programmatic or financial responsibilities of the original 
     Federal intergovernmental mandate and providing the funding 
     necessary consistent with the costs of Federal agency 
     assistance, monitoring, and enforcement.
       ``(3) Committee on appropriations.--Paragraph (1) shall not 
     apply to matters that are within the jurisdiction of the 
     Committee on Appropriations of the Senate or the House of 
     Representatives.
       ``(4) Determination of applicability to pending 
     legislation.--For purposes of this subsection, on questions 
     regarding the applicability of this Act to a pending bill, 
     joint resolution, amendment, motion, or conference report, 
     the Committee on Governmental Affairs of the Senate, or the 
     Committee on Government Reform and Oversight of the House of 
     Representatives, as applicable, shall have the authority to 
     make the final determination.
       ``(5) Determinations of federal mandate levels.--For the 
     purposes of this subsection, the levels of Federal mandates 
     for a fiscal year shall be determined based on the estimates 
     made by the Committee on the Budget of the Senate or the 
     House of Representatives, as the case may be.
       ``(d) Enforcement in the House of Representatives.--It 
     shall not be in order in the House of Representatives to 
     consider a rule or order that waives the application of 
     subsection (c) to a bill or joint resolution reported by a 
     committee of authorization.''.
       (b) Technical and Conforming Amendment.--The table of 
     contents in section 1(b) of the Congressional Budget and 
     Impoundment Control Act of 1974 is amended by adding after 
     the item relating to section 407 the following new item:

``Sec. 408. Legislative mandate accountability and reform.''.

     SEC. 102. ENFORCEMENT IN THE HOUSE OF REPRESENTATIVES.

       (a) Motions to Strike in the Committee of the Whole.--
     Clause 5 of rule XXIII of the Rules of the House of 
     Representatives is amended by adding at the end the 
     following:
       ``(c) In the consideration of any measure for amendment in 
     the Committee of the Whole containing any Federal mandate 
     the 
      [[Page S57]] direct costs of which exceed the threshold in 
     section 408(c) of the Unfunded Mandate Reform Act of 1995, it 
     shall always be in order, unless specifically waived by terms 
     of a rule governing consideration of that measure, to move to 
     strike such Federal mandate from the portion of the bill then 
     open to amendment.''.
       (b) Committee on Rules Reports on Waived Points of Order.--
     The Committee on Rules shall include in the report required 
     by clause 1(d) of Rule XI (relating to its activities during 
     the Congress) of the Rules of the House of Representatives a 
     separate item identifying all waivers of points of order 
     relating to Federal mandates, listed by bill or joint 
     resolution number and the subject matter of that measure.

     SEC. 103. ASSISTANCE TO COMMITTEES AND STUDIES.

       The Congressional Budget and Impoundment Control Act of 
     1974 is amended--
       (1) in section 202--
       (A) in subsection (c)--
       (i) by redesignating paragraph (2) as paragraph (3); and
       (ii) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) At the request of any committee of the Senate or the 
     House of Representatives, the Office shall, to the extent 
     practicable, consult with and assist such committee in 
     analyzing the budgetary or financial impact of any proposed 
     legislation that may have--
       ``(A) a significant budgetary impact on State, local, or 
     tribal governments; or
       ``(B) a significant financial impact on the private 
     sector.'';
       (B) by amending subsection (h) to read as follows:
       ``(h) Studies.--
       ``(1) Continuing studies.--The Director of the 
     Congressional Budget Office shall conduct continuing studies 
     to enhance comparisons of budget outlays, credit authority, 
     and tax expenditures.
       ``(2) Federal mandate studies.--
       ``(A) At the request of any Chairman or ranking member of 
     the minority of a Committee of the Senate or the House of 
     Representatives, the Director shall, to the extent 
     practicable, conduct a study of a Federal mandate legislative 
     proposal.
       ``(B) In conducting a study on intergovernmental mandates 
     under subparagraph (A), the Director shall--
       ``(i) solicit and consider information or comments from 
     elected officials (including their designated 
     representatives) of State, local, or tribal governments as 
     may provide helpful information or comments;
       ``(ii) consider establishing advisory panels of elected 
     officials or their designated representatives, of State, 
     local, or tribal governments if the Director determines that 
     such advisory panels would be helpful in performing 
     responsibilities of the Director under this section; and
       ``(iii) if, and to the extent that the Director determines 
     that accurate estimates are reasonably feasible, include 
     estimates of--

       ``(I) the future direct cost of the Federal mandate to the 
     extent that such costs significantly differ from or extend 
     beyond the 5-year period after the mandate is first 
     effective; and
       ``(II) any disproportionate budgetary effects of Federal 
     mandates upon particular industries or sectors of the 
     economy, States, regions, and urban or rural or other types 
     of communities, as appropriate.

       ``(C) In conducting a study on private sector mandates 
     under subparagraph (A), the Director shall provide estimates, 
     if and to the extent that the Director determines that such 
     estimates are reasonably feasible, of--
       ``(i) future costs of Federal private sector mandates to 
     the extent that such mandates differ significantly from or 
     extend beyond the 5-year time period referred to in 
     subparagraph (B)(iii)(I);
       ``(ii) any disproportionate financial effects of Federal 
     private sector mandates and of any Federal financial 
     assistance in the bill or joint resolution upon any 
     particular industries or sectors of the economy, States, 
     regions, and urban or rural or other types of communities; 
     and
       ``(iii) the effect of Federal private sector mandates in 
     the bill or joint resolution on the national economy, 
     including the effect on productivity, economic growth, full 
     employment, creation of productive jobs, and international 
     competitiveness of United States goods and services.''; and
       (2) in section 301(d) by adding at the end thereof the 
     following new sentence: ``Any Committee of the House of 
     Representatives or the Senate that anticipates that the 
     committee will consider any proposed legislation 
     establishing, amending, or reauthorizing any Federal program 
     likely to have a significant budgetary impact on any State, 
     local, or tribal government, or likely to have a significant 
     financial impact on the private sector, including any 
     legislative proposal submitted by the executive branch likely 
     to have such a budgetary or financial impact, shall include 
     its views and estimates on that proposal to the Committee on 
     the Budget of the applicable House.''.

     SEC. 104. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the 
     Congressional Budget Office $4,500,000 for each of the fiscal 
     years 1996, 1997, 1998, 1999, 2000, 2001, and 2002 to carry 
     out the provisions of this Act.

     SEC. 105. EXERCISE OF RULEMAKING POWERS.

       The provisions of sections 101, 102, 103, 104, and 107 are 
     enacted by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively, and as such 
     they shall be considered as part of the rules of such House, 
     respectively, and such rules shall supersede other rules only 
     to the extent that they are inconsistent therewith; and
       (2) with full recognition of the constitutional right of 
     either House to change such rules (so far as relating to such 
     House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of each House.

     SEC. 106. REPEAL OF CERTAIN ANALYSIS BY CONGRESSIONAL BUDGET 
                   OFFICE.

       (a) In General.--Section 403 of the Congressional Budget 
     Act of 1974 (2 U.S.C. 653) is repealed.
       (b) Technical and Conforming Amendment.--The table of 
     contents in section 1(b) of the Congressional Budget and 
     Impoundment Control Act of 1974 is amended by striking out 
     the item relating to section 403.

     SEC. 107. EFFECTIVE DATE.

       This title shall take effect on January 1, 1996 and shall 
     apply only to legislation introduced on and after such date.
             TITLE II--REGULATORY ACCOUNTABILITY AND REFORM

     SEC. 201. REGULATORY PROCESS.

       (a) In General.--Each agency shall, to the extent permitted 
     in law--
       (1) assess the effects of Federal regulations on State, 
     local, and tribal governments (other than to the extent that 
     such regulations incorporate requirements specifically set 
     forth in legislation), and the private sector including 
     specifically the availability of resources to carry out any 
     Federal intergovernmental mandates in those regulations; and
       (2) seek to minimize those burdens that uniquely or 
     significantly affect such governmental entities, consistent 
     with achieving statutory and regulatory objectives.
       (b) State, Local, and Tribal Government Input.--Each agency 
     shall, to the extent permitted in law, develop an effective 
     process to permit elected officials (or their designated 
     representatives) of State, local, and tribal governments to 
     provide meaningful and timely input in the development of 
     regulatory proposals containing significant Federal 
     intergovernmental mandates. Such a process shall be 
     consistent with all applicable laws.
       (c) Agency Plan.--
       (1) Effects on state, local and tribal governments.--Before 
     establishing any regulatory requirements that might 
     significantly or uniquely affect small governments, agencies 
     shall have developed a plan under which the agency shall--
       (A) provide notice of the contemplated requirements to 
     potentially affected small governments, if any;
       (B) enable officials of affected small governments to 
     provide input under subsection (b); and
       (C) inform, educate, and advise small governments on 
     compliance with the requirements.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to each agency to carry out the provisions 
     of this section, and for no other purpose, such sums as are 
     necessary.

     SEC. 202. STATEMENTS TO ACCOMPANY SIGNIFICANT REGULATORY 
                   ACTIONS.

       (a) In General.--Before promulgating any final rule that 
     includes any Federal intergovernmental mandate that may 
     result in the expenditure by State, local, or tribal 
     governments, and the private sector, in the aggregate, of 
     $100,000,000 or more (adjusted annually for inflation by the 
     Consumer Price Index) in any 1 year, and before promulgating 
     any general notice of proposed rulemaking that is likely to 
     result in promulgation of any such rule, the agency shall 
     prepare a written statement containing--
       (1) estimates by the agency, including the underlying 
     analysis, of the anticipated costs to State, local, and 
     tribal governments and the private sector of complying with 
     the Federal intergovernmental mandate, and of the extent to 
     which such costs may be paid with funds provided by the 
     Federal Government or otherwise paid through Federal 
     financial assistance;
       (2) estimates by the agency, if and to the extent that the 
     agency determines that accurate estimates are reasonably 
     feasible, of--
       (A) the future costs of the Federal intergovernmental 
     mandate; and
       (B) any disproportionate budgetary effects of the Federal 
     intergovernmental mandate upon any particular regions of the 
     Nation or particular State, local, or tribal governments, 
     urban or rural or other types of communities;
       (3) a qualitative, and if possible, a quantitative 
     assessment of costs and benefits anticipated from the Federal 
     intergovernmental mandate (such as the enhancement of health 
     and safety and the protection of the natural environment);
       (4) the effect of the Federal private sector mandate on the 
     national economy, including the effect on productivity, 
     economic growth, full employment, creation of productive 
     jobs, and international competitiveness of United States 
     goods and services; and
       (5)(A) a description of the extent of the agency's prior 
     consultation with elected representatives (or their 
     designated representatives) of the affected State, local, and 
     tribal governments;
       (B) a summary of the comments and concerns that were 
     presented by State, local, or tribal governments either 
     orally or in writing to the agency;
     [[Page S58]]   (C) a summary of the agency's evaluation of 
     those comments and concerns; and
       (D) the agency's position supporting the need to issue the 
     regulation containing the Federal intergovernmental mandates 
     (considering, among other things, the extent to which costs 
     may or may not be paid with funds provided by the Federal 
     Government).
       (b) Promulgation.--In promulgating a general notice of 
     proposed rulemaking or a final rule for which a statement 
     under subsection (a) is required, the agency shall include in 
     the promulgation a summary of the information contained in 
     the statement.
       (c) Preparation in Conjunction With Other Statement.--Any 
     agency may prepare any statement required under subsection 
     (a) in conjunction with or as a part of any other statement 
     or analysis, provided that the statement or analysis 
     satisfies the provisions of subsection (a).

     SEC. 203. ASSISTANCE TO THE CONGRESSIONAL BUDGET OFFICE.

       The Director of the Office of Management and Budget shall--
       (1) collect from agencies the statements prepared under 
     section 202; and
       (2) periodically forward copies of such statements to the 
     Director of the Congressional Budget Office on a reasonably 
     timely basis after promulgation of the general notice of 
     proposed rulemaking or of the final rule for which the 
     statement was prepared.

     SEC. 204. PILOT PROGRAM ON SMALL GOVERNMENT FLEXIBILITY.

       (a) In General.--The Director of the Office of Management 
     and Budget, in consultation with Federal agencies, shall 
     establish pilot programs in at least 2 agencies to test 
     innovative, and more flexible regulatory approaches that--
       (1) reduce reporting and compliance burdens on small 
     governments; and
       (2) meet overall statutory goals and objectives.
       (b) Program Focus.--The pilot programs shall focus on rules 
     in effect or proposed rules, or a combination thereof.
             TITLE III--REVIEW OF UNFUNDED FEDERAL MANDATES

     SEC. 301. ESTABLISHMENT

       There is established a commission which shall be known as 
     the ``Commission on Unfunded Federal Mandates'' (in this 
     title referred to as the ``Commission'').

     SEC. 302. REPORT ON UNFUNDED FEDERAL MANDATES BY THE 
                   COMMISSION.

       (a) In General.--The Commission shall in accordance with 
     this section--
       (1) investigate and review the role of unfunded Federal 
     mandates in intergovernmental relations and their impact on 
     local, State, and Federal government objectives and 
     responsibilities; and
       (2) make recommendations to the President and the Congress 
     regarding--
       (A) allowing flexibility for States, local, and tribal 
     governments in complying with specific unfunded Federal 
     mandates for which terms of compliance are unnecessarily 
     rigid or complex;
       (B) reconciling any 2 or more unfunded Federal mandates 
     which impose contradictory or inconsistent requirements;
       (C) terminating unfunded Federal mandates which are 
     duplicative, obsolete, or lacking in practical utility;
       (D) suspending, on a temporary basis, unfunded Federal 
     mandates which are not vital to public health and safety and 
     which compound the fiscal difficulties of States, local, and 
     tribal governments, including recommendations for triggering 
     such suspension;
       (E) consolidating or simplifying unfunded Federal mandates, 
     or the planning or reporting requirements of such mandates, 
     in order to reduce duplication and facilitate compliance by 
     States, local, and tribal governments with those mandates; 
     and
       (F) establishing common Federal definitions or standards to 
     be used by States, local, and tribal governments in complying 
     with unfunded Federal mandates that use different definitions 
     or standards for the same terms or principles.
       (3) Identification of relevant unfunded Federal mandates.--
     Each recommendation under paragraph (2) shall, to the extent 
     practicable, identify the specific unfunded Federal mandates 
     to which the recommendation applies.
       (b) Criteria.--
       (1) In general.--The Commission shall establish criteria 
     for making recommendations under subsection (a).
       (2) Issuance of proposed criteria.--The Commission shall 
     issue proposed criteria under this subsection not later than 
     60 days after the date of the enactment of this Act, and 
     thereafter provide a period of 30 days for submission by the 
     public of comments on the proposed criteria.
       (3) Final criteria.--Not later than 45 days after the date 
     of issuance of proposed criteria, the Commission shall--
       (A) consider comments on the proposed criteria received 
     under paragraph (2);
       (B) adopt and incorporate in final criteria any 
     recommendations submitted in those comments that the 
     Commission determines will aid the Commission in carrying out 
     its duties under this section; and
       (C) issue final criteria under this subsection.
       (c) Preliminary Report.--
       (1) In general.--Not later than 9 months after the date of 
     the enactment of this Act, the Commission shall--
       (A) prepare and publish a preliminary report on its 
     activities under this subtitle, including preliminary 
     recommendations pursuant to subsection (a);
       (B) publish in the Federal Register a notice of 
     availability of the preliminary report; and
       (C) provide copies of the preliminary report to the public 
     upon request.
       (2) Public hearings.--The Commission shall hold public 
     hearings on the preliminary recommendations contained in the 
     preliminary report of the Commission under this subsection.
       (d) Final Report.--Not later than 3 months after the date 
     of the publication of the preliminary report under subsection 
     (c), the Commission shall submit to the Congress, including 
     the Committee on Government Reform and Oversight of the House 
     of Representatives and the Committee on Governmental Affairs 
     of the Senate, and to the President a final report on the 
     findings, conclusions, and recommendations of the Commission 
     under this section.

     SEC. 303. MEMBERSHIP.

       (a) Number and Appointment.--
       (1) In general.--The Commission shall be composed of 9 
     members appointed from individuals who possess extensive 
     leadership experience in and knowledge of States, local, and 
     tribal governments and intergovernmental relations, including 
     State and local elected officials, as follows:
       (A) 3 members appointed by the Speaker of the House of 
     Representatives, in consultation with the minority leader of 
     the House of Representatives.
       (B) 3 members appointed by the majority leader of the 
     Senate, in consultation with the minority leader of the 
     Senate.
       (C) 3 members appointed by the President.
       (2) Limitation.--An individual who is a Member or employee 
     of the Congress may not be appointed or serve as a member of 
     the Commission.
       (b) Waiver of Limitation on Executive Schedule Positions.--
     Appointments may be made under this section without regard to 
     section 5311(b) of title 5, United States Code.
       (c) Terms.--
       (1) In general.--Each member of the Commission shall be 
     appointed for the life of the Commission.
       (2) Vacancies.--A vacancy in the Commission shall be filled 
     in the manner in which the original appointment was made.
       (d) Basic Pay.--
       (1) Rates of pay.--Members of the Commission shall serve 
     without pay.
       (2) Prohibition of compensation of federal employees.--
     Members of the Commission who are full-time officers or 
     employees of the United States may not receive additional 
     pay, allowances, or benefits by reason of their service on 
     the Commission.
       (e) Travel Expenses.--Each member of the Commission shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (f) Chairperson.--The President shall designate a member of 
     the Commission as Chairperson at the time of the appointment 
     of that member.
       (g) Meetings.--
       (1) In general.--Subject to paragraph (2), the Commission 
     shall meet at the call of the Chairperson or a majority of 
     its members.
       (2) First meeting.--The Commission shall convene its first 
     meeting by not later than 45 days after the date of the 
     completion of appointment of the members of the Commission.
       (3) Quorum.--A majority of members of the Commission shall 
     constitute a quorum but a lesser number may hold hearings.

     SEC. 304. DIRECTOR AND STAFF OF COMMISSION; EXPERTS AND 
                   CONSULTANTS.

       (a) Director.--The Commission shall, without regard to 
     section 5311(b) of title 5, United States Code, have a 
     Director who shall be appointed by the Commission. The 
     Director shall be paid at the rate of basic pay payable for 
     level IV of the Executive Schedule.
       (b) Staff.--With the approval of the Commission, and 
     without regard to section 5311(b) of title 5, United States 
     Code, the Director may appoint and fix the pay of such staff 
     as is sufficient to enable the Commission to carry out its 
     duties.
       (c) Applicability of Certain Civil Service Laws.--The 
     Director and staff of the Commission may be appointed without 
     regard to the provisions of title 5, United States Code, 
     governing appointments in the competitive service, and may be 
     paid without regard to the provisions of chapter 51 and 
     subchapter III of chapter 53 of that title relating to 
     classification and General Schedule pay rates, except that an 
     individual so appointed may not receive pay in excess of the 
     annual rate payable under section 5376 of title 5, United 
     States Code.
       (d) Experts and Consultants.--The Commission may procure 
     temporary and intermittent services of experts or consultants 
     under section 3109(b) of title 5, United States 
     Code.
       (e) Staff of Federal Agencies.--Upon request of the 
     Director, the head of any Federal department or agency may 
     detail, on a reimbursable basis, any of the personnel of that 
     department or agency to the Commission to assist it in 
     carrying out its duties under this title.

     SEC. 305. POWERS OF COMMISSION.

       (a) Hearings and Sessions.--The Commission may, for the 
     purpose of carrying out this title, hold hearings, sit and 
     act at times and places, take testimony, and receive evidence 
     as the Commission considers appropriate.
     [[Page S59]]   (b) Powers of Members and Agents.--Any member 
     or agent of the Commission may, if authorized by the 
     Commission, take any action which the Commission is 
     authorized to take by this section.
       (c) Obtaining Official Data.--The Commission may secure 
     directly from any department or agency of the United States 
     information necessary to enable it to carry out this title, 
     except information--
       (1) which is specifically exempted from disclosure by law; 
     or
       (2) which that department or agency determines will 
     disclose--
       (A) matters necessary to be kept secret in the interests of 
     national defense or the confidential conduct of the foreign 
     relations of the United States;
       (B) information relating to trade secrets or financial or 
     commercial information pertaining specifically to a given 
     person if the information has been obtained by the Government 
     on a confidential basis, other than through an application by 
     such person for a specific financial or other benefit, and is 
     required to be kept secret in order to prevent undue injury 
     to the competitive position of such person; or
       (C) personnel or medical data or similar data the 
     disclosure of which would constitute a clearly unwarranted 
     invasion of personal privacy;
     unless the portions containing such matters, information, or 
     data have been excised.
     Upon request of the Chairperson of the Commission, the head 
     of that department or agency shall furnish that information 
     to the Commission.
       (d) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     departments and agencies of the United States.
       (e) Administrative Support Services.--Upon the request of 
     the Commission, the Administrator of General Services shall 
     provide to the Commission, on a reimbursable basis, the 
     administrative support services necessary for the Commission 
     to carry out its duties under this title.
       (f) Contract Authority.--The Commission may, subject to 
     appropriations, contract with and compensate government and 
     private agencies or persons for property and services used to 
     carry out its duties under this title.

     SEC. 306. TERMINATION.

       The Commission shall terminate 90 days after submitting its 
     final report pursuant to section 302(d).

     SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Commission 
     $1,000,000 to carry out this title.

     SEC. 308. DEFINITION.

       As used in this title, the term ``unfunded Federal 
     mandate'' means--
       (1) any provision in statute or regulation that imposes an 
     enforceable duty upon States, local governments, or tribal 
     governments including a condition of Federal assistance or a 
     duty arising from participation in a voluntary Federal 
     program;
       (2) relates to a Federal program under which Federal 
     financial assistance is provided to States, local 
     governments, or tribal governments under entitlement 
     authority; or
       (3) that imposes any other unfunded obligation on States, 
     local governments, or tribal governments.

     SEC. 309. EFFECTIVE DATE.

       This title shall take effect 60 days after the date of the 
     enactment of this Act.
                       TITLE IV--JUDICIAL REVIEW

     SEC. 401. JUDICIAL REVIEW.

       (a) In General.--Any statement or report prepared under 
     this Act, and any compliance or noncompliance with the 
     provisions of this Act, and any determination concerning the 
     applicability of the provisions of this Act shall not be 
     subject to judicial review.
       (b) Rule of Construction.--No provision of this Act or 
     amendment made by this Act shall be construed to create any 
     right or benefit, substantive or procedural, enforceable by 
     any person in any administrative or judicial action. No 
     ruling or determination made under the provisions of this Act 
     or amendments made by this Act shall be considered by any 
     court in determining the intent of Congress or for any other 
     purpose.
                                                                    ____

                                    National League of Cities,

                                Washington, DC, December 30, 1994.
     Hon. Dirk Kempthorne,
     U.S. Senate,
     Washington, DC.
       Dear Senator Kempthorne: I am writing on behalf of the 
     elected officials of the nation's cities and towns to commend 
     you for sponsoring the Unfunded Mandate Reform Act of 1995. 
     Of all the measures introduced to date, this legislation is 
     undoubtedly the strongest, best crafted, and most 
     comprehensive approach to provide relief for state and local 
     governments from the burden of unfunded federal mandates.
       The National League of Cities commits its strongest support 
     for the Unfunded Mandate Reform Act. We will fight any 
     attempts to weaken the bill with the full force of the 
     150,000 local elected officials we represent. Local 
     governments and the taxpayers we serve have borne the federal 
     government's fiscal burden for too long. We will not have 
     such an important relief measure thwarted in the final hour 
     by special interests.
       We commend you for continuing to foster the bipartisan 
     support which your original mandate relief bill so 
     successfully garnered in the last Congress. We will work hard 
     to gain bipartisan support for mandates relief in the 104th 
     Congress, because, as you are well aware, this bill will 
     benefit all states, all counties, all municipalities, and all 
     taxpayers, regardless of their political allegiance.
       Again, please accept our sincere gratitude for your 
     efforts.
           Sincerely,

                                           Carolyn Long Banks,

                                                        President,
     Councilwoman-at-Large.
                                                                    ____



                             National Association of Counties,

                                Washington, DC, December 29, 1994.
     Hon. Dirk Kempthorne,
     U.S. Senate,
     Washington, DC.
       Dear Senator Kempthorne: On behalf of the National 
     Association of Counties. I am writing to express our strong 
     support for S. 1, the Unfunded Mandate Reform Act of 1995. We 
     sincerely appreciate the leadership you have provided in 
     crafting this new, strong bipartisan bill to relieve states 
     and local governments from the growing burdens of unfunded 
     federal mandates. Our NACo staff has reviewed the latest 
     draft and they are convinced it is much stronger than S. 993, 
     the bill approved in committee last summer.
       While this legislation retained many of the basic 
     principles from the previous bill, there were many 
     improvements. Most significant among them is the provision 
     that requires any new mandate to be funded by new entitlement 
     spending or new taxes or new appropriations. If not, the 
     mandate will not take effect unless the majority of members 
     in both houses vote to impose the cost on state and local 
     governments. Although the new bill will not prevent Congress 
     from imposing the cost of new mandates on state and local 
     taxpayers, by holding members accountable we believe it will 
     discourage and curtail the number of mandates imposed on 
     them.
       Again, thank you for your leadership on this important 
     legislation. County officials across our great nation stand 
     ready to assist you in anyway we can to ensure the swift 
     passage of S. 1. If you have any questions, please contact 
     Larry Naake or Larry Jones of the NACo staff.
           Sincerely,
                                                    Randall Franke
     Commissioner, NACo President.
                                                                    ____



                           National School Boards Association,

                                Alexandria, VA, December 30, 1994.
     Hon. Dirk Kempthorne,
     U.S. Senate,
     Washington, DC.
       Dear Senator Kempthorne: The National School Boards 
     Association (NSBA), on behalf on the more than 95,000 locally 
     elected school board members nationwide, would like to offer 
     its strong support for the ``Unfunded Mandate Reform Act of 
     1995'' (S. 1). This legislation would establish a general 
     rule that Congress shall not impose federal mandates without 
     adequate funding. This legislation would stop the flow of 
     requirements on school districts which must spend billions of 
     local tax dollars every year to comply with unfunded federal 
     mandates. We commend you for your unending leadership on this 
     critical issue.
       Today, school children throughout the country are facing 
     the prospect of reduced classroom instruction because the 
     federal government requires, but does not fund, services or 
     programs that local school boards are directed to implement. 
     School boards are not opposed to the goals of many of these 
     mandates, but we believe that Congress should be responsible 
     for funding the programs it imposes on school districts. Our 
     nation's public school children must not be made to pay the 
     price for unfunded federal mandates.
       S. 1 would prohibit a law from being implemented without 
     necessary federal government funding. S. 1 would allow school 
     districts to execute the future programs which are required 
     by the federal government without placing an unfair financial 
     burden on the schools.
       Again, we applaud your leadership in negotiating and 
     sponsoring this bill which would allow schools to provide a 
     quality education to their students. We offer any assistance 
     you need as you quickly move this bill to the Senate floor.
       If you have questions regarding this issue, please contact 
     Laurie A. Westley, Chief Legislative Counsel at (703) 838-
     6703.
           Yours very truly,
     Boyd W. Boehlje,
       President.
     Thomas A. Shannon,
       Executive Director.
                                                                    ____

                                    U.S. Conference of Mayors,

                                Washington, DC, December 30, 1994.
     Hon. Dirk Kempthorne,
     U.S. Senate,
     Washington, DC.
       Dear Senator Kempthorne: On behalf of the United States 
     Conference of Mayors, I want to thank you for your continued 
     leadership in our fight against unfunded federal mandates and 
     to express strong support for the new bill, S. 1.
       S. 1 is serious and tough mandate reform which will do more 
     than simply stop the flood of trickle-down taxes and 
     irresponsible, ill-defined federal mandates which have come 
     from Washington over the past two decades. S. 1 will begin to 
     restore the partnership which the founders of this nation 
     intended to exist between the federal government, and state 
     and local governments.
       [[Page S60]] S. 1, which was developed in bipartisan 
     cooperation with the state and local organizations, including 
     the Conference of Mayors, is even stronger than what was 
     before the Senate last year in that it requires Congress to 
     either fund a mandate at the time of passage or provide that 
     the mandate cannot be enforced by the federal government if 
     not fully funded. However, the bill is still based upon the 
     carefully crafted package which was agreed to in S. 993 and 
     which garnered 67 Senate cosponsors in the 103rd Congress. 
     The bill would not in any way repeal, weaken or affect any 
     existing statute, be it an existing unfunded mandate or not. 
     This legislation only seeks to address new unfunded mandate 
     legislation. In addition, S. 1 would not infringe upon or 
     limit the ability of the Congress or the federal judicial 
     system to enforce any new or existing constitutional 
     protection or civil rights statute.
       The mayors are extremely pleased that our legislation, 
     which was blocked from final passage in the 103rd Congress, 
     has been designated as S. 1 by incoming Majority Leader Bob 
     Dole. We also understand and appreciate the significance of 
     the Governmental Affairs and Budget Committees holding a 
     joint hearing on our bill on the second day of the 104th 
     Congress at which our organization will be represented.
       I remember the early days in our campaign when many 
     questioned our resolve. How could a freshman Republican 
     Senator from the State of Idaho move the Washington 
     establishment to reform its beloved practice of imposing 
     federal mandates without funding? We responded to these 
     doubters by focusing the national grass-roots resentment of 
     unfunded mandates into a well orchestrated political machine, 
     and by joining with our state and local partners in taking 
     our message to Washington.
       The United States Conference of Mayors will continue in its 
     efforts to enact S. 1 until we are successful. We will not 
     let up on the political and public pressure. And we will 
     actively oppose efforts to weaken our bill.
       The time to pass our bill is now. Those who would seek to 
     delay action will be held accountable, and those who stand 
     with state and local government will know that they have our 
     support and appreciation.
       Thank you again for all of your hard work and commitment, 
     and rest assured that we will continue to stand with you.
           Sincerely yours,
                                                      Victor Ashe,
                                                        President.

  Mr. DOLE. Mr. President, for years, Members of Congress have tried to 
hide the full cost of efforts to expand the reach of the Federal 
Government. They do this by passing Federal laws giving, State and 
local governments new responsibilities, but little, if any, of the 
money needed to fulfill their new federally-mandated obligations. State 
and local officials call these new obligations unfunded mandates.
  State and local government costs don't show up in the Federal budget. 
Congressional advocates of a particular piece of legislation who are 
concerned that their proposal might not pass if the full costs of 
implementation are known, shift a large portion of the costs off-
budget. The problem is that Federal cost estimates don't tell the whole 
story. Just because a new piece of legislation doesn't have a Federal 
cost does not mean that it has no cost or that it does not affect 
taxpayers.
  For the past several years, a steady stream of unfunded mandates has 
been flowing out of Washington, wreaking havoc on State and local 
budgets, and forcing Governors, Mayors, State legislators and city 
council members across the country to make tough choices.
  Because most States and localities are required to balance their 
budgets each year, unfunded mandates force State and local officials to 
choose between cutting other services and raising taxes to balance 
their budgets and fulfill their new federally-mandated 
responsibilities.
  The costs are staggering. Ohio Governor George Voinovich reviewed the 
impact of unfunded Federal mandates on the State of Ohio. His August 
1993 study found--and I quote--``Unfunded Federal mandates identified 
in this survey will impose costs of over $1.74 billion on the State of 
Ohio from 1992 through 1995.'' Officials at the National Conference of 
State Legislatures have estimated that unfunded mandates cost States 
more than $10 billion a year. The actual figure may be even higher. 
Gov. Pete Wilson has estimated that unfunded Federal mandates cost the 
State of California $7.7 billion in 1994.
  That's a lot of money, even in Washington. Money that could have been 
used to bolster law enforcement or education budgets, money that could 
have been used to finance innovative new State or local initiatives.
  Mr. President, the time has come for a little legislative truth-in-
advertising. Before Members of Congress vote for a piece of 
legislation, they need to know how it could impact the States and 
localities they represent. If Members of Congress want to pass a new 
law, they should be willing to make the tough choices needed to pay for 
it.
  The Unfunded Mandate Reform Act of 1995 enjoys broad bipartisan 
support. It is a change that we can adopt this month and have an 
immediate impact on the way that Congress evaluates new legislation.
  This legislation recognizes that governments are not the only ones 
affected by mandates. This bill recognizes that potential private 
sector costs should be a part of the equation whenever Congress 
evaluates the potential costs of new legislation. That is why the bill 
would require that CBO evaluate the potential costs of new mandates on 
businesses and individuals.
  Mr. President, this is not a partisan issue. It's a good government 
issue whose time has come, thanks, in large part, to the hard work and 
skilled leadership of the distinguished Senator from Idaho, Senator 
Kempthorne.
  As the former Mayor of Boise, Senator Kempthorne knows firsthand the 
difficult choices that unfunded mandates force upon those who have to 
balance their budgets every year. He has worked tirelessly over the 
past several months with State and local officials from across the 
country on both sides of the aisle, with Governmental Affairs 
Committee, Chairman, Roth, Budget Committee Chairman Domenici, key 
Democrats on both of those key committees, the administration and key 
Republicans in the House. The result of all this effort is a bill that 
is tougher than the bill we debated last year.
  I am confident that this new, improved version--the Unfunded Mandates 
Reform Act of 1995--will be the blueprint for a bill that can be 
approved in both Houses of Congress and signed into law by President 
Clinton early this year.
  Governors, State legislators, mayors, county executives, and other 
State, local, and tribal executives--Democrats, Republicans and 
Independents--are urging us to act quickly to provide them with the 
protection they seek. They want to forge a new partnership between 
Congress and State and local governments. Adoption of this important 
legislation will send them a clear signal that the 104th Congress 
intends to make that new partnership a reality.
  Chairman Roth and Chairman Domenici have announced that the 
Governmental Affairs and Budget Committees will hold a joint hearing on 
S. 1 tomorrow. The Governmental Affairs, Committee will markup the bill 
Friday, and the Budget Committee will mark up the bill on Monday of 
next week. Our hope is that by working on a bipartisan basis we can get 
this important piece of legislation to the floor and begin the debate 
next week.
  Mr. GLENN. Mr. President, I rise to announce my support for S. 1--the 
Kempthorne-Glenn bill on Federal mandate reform and relief. This is 
legislation that had strong bipartisan and administration support last 
year. In fact we had 67 cosponsors, and my hope is that we will be able 
to pass the bill quickly through the House and Senate in this Congress. 
But before I go into a description of the bill, I'd like to provide 
some background to the whole unfunded Federal mandates debate.
  On October 27, 1993, State and local elected officials from all over 
the Nation came to Washington and declared that day--``National 
Unfunded Mandates Day.'' These officials conveyed a powerful message to 
Congress and the Clinton administration on the need for Federal mandate 
reform and relief. They raised four major objections to unfunded 
Federal mandates.
  First, unfunded Federal mandates impose unreasonable fiscal burdens 
on their budgets;
  Second, they limit State and local government flexibility to address 
more pressing local problems like crime and education;
  Third, Federal mandates too often come in a ``one size fits all'' box 
that stifles the development of more innovative local efforts--efforts 
that ultimately may be more effective in solving the problem the 
Federal mandate is meant to address; and,
   [[Page S61]] Fourth, they allow Congress to get credit for passing 
some worthy mandate or program, while leaving State and local 
governments with the difficult tasks of cutting services or raising 
taxes in order to pay for it.
  In our two hearings, we heard testimony from elected State and local 
officials from both parties, representing all sizes of government. It 
was clear from the testimony that unfunded mandates hit small counties 
and townships as hard as they do big cities and larger States.
  I think it's worth stepping back and taking a look at the evolution 
of the Federal-State-local relationship over the last decade and a half 
so we can put this debate into some historical context. I believe the 
seeds from which sprang the mandate reform movement can be traced back 
to the so-called policy of ``New Federalism,'' a policy which resulted 
in a gradual but steady shift in governing responsibilities from the 
Federal Government to State and local governments over the last 10 to 
15 years. During that time period, Federal aid to State and local 
governments was severely cut, or even eliminated, in a number of key 
domestic program areas. At the same time, enactment and subsequent 
implementation of various Federal statutes passed on new costs to State 
and local governments. In simple terms, State and local governments 
ended up receiving less of the Federal carrot and more of the Federal 
stick.
                    A. the cost of federal mandates

  Let's examine the cost issue first. While there has been substantial 
debate on the actual cost of Federal mandates, suffice it to say that 
almost all participants in the debate agree that there isn't complete 
data on the aggregate costs of Federal mandates to State and local 
governments. In fact, one of the major objectives of S. 993 is to 
develop better information and data on the cost of mandates. Likewise, 
there is even less information available on estimates of what potential 
benefits might be derived from select Federal mandates--a point made by 
representatives from the disability, environmental, and labor community 
in the committee's second hearing. Nonetheless, there have been efforts 
made in the past to measure the cost impacts of Federal mandates on 
State and local governments. And those efforts do show that costs 
appear to be rising. Since 1981, the Congressional Budget Office [CBO] 
has been preparing cost estimates on major legislation reported by 
committee with an expected annual cost to State and local governments 
in excess of $200 million. According to CBO, 89 bills with an estimated 
annual cost in excess of $200 million each were reported out of 
committee between 1983 and 1988. I would point out one major caveat 
with CBO's analysis--it does not indicate whether these bills funded 
the costs or not, nor how many of the bills were eventually enacted. 
Still, even with a rough calculation, the chart shows that committees 
reported out bills with an average estimated new cost of at least $17.8 
billion per year to State and local governments. In total, 382 bills 
were reported from committees over the 6-year period with some new 
costs to State and local governments. So if anything, the $17.8 billion 
figure is a conservative estimate for reported bills.
  Federal environmental mandates head the list of areas that State and 
local officials claim to be the most burdensome. A closer look at two 
of the studies done on the cost of State and local governments of 
compliance with environmental statutes does indicate that these costs 
appear to be rising. A 1990 EPA study, Environmental Investments: The 
Cost of a Clean Environment, estimates that total annual costs of 
environmental mandates--from all levels of government--to State and 
local governments will rise from $22.2 billion in 1987 to $37.1 billion 
by the 2000--an increase in real terms of 67 percent. EPA estimates 
that the cost of environmental mandates to State governments will rise 
from $3 billion in 1987 to $4.5 billion by 2000--a 48-percent increase. 
Over the same timeframe, the annual costs of environmental mandates to 
local governments is estimated to increase from $19.2 billion to $32.6 
billion--a 70-percent gain. According to the Vice President's National 
Performance Review, the total annual cost of environmental mandates to 
State and local governments, when adjusted for inflation, will reach 
close to $44 billion by the end of this century.
  The city of Columbus in my home State of Ohio also noted a trend in 
rising costs for city compliance with Federal environmental mandates. 
In its study, the city concluded that its cost of compliance 
environmental statutes would rise from $62.1 million in 1991 to $107.4 
million in 1995--in 1991 constant dollars--a 73-percent increase. The 
city estimates that its share of the total city budget going to pay for 
these mandates will increase from 10.6 percent to 18.3 percent over 
that timeframe.
  In addition to environmental requirements, State and local officials 
in our committee hearings cited other
Federal requirements as burdensome and costly. They highlighted 
compliance with the Americans with Disabilities Act and the Motor Voter 
Registration Act; complying with the administrative requirements that 
go with implementing many Federal programs; and, meeting Federal 
criminal justice and educational program requirements. Now I would note 
that while each of these individual programs or requirements clearly 
carry with them costs to State and local governments, costs which we 
have too often ignored in the past, I believe that on a case-by-case 
basis each of these mandates has substantial benefits to our society 
and our nation as a whole, otherwise I along with many of my colleagues 
in the Senate wouldn't have voted to enact them. State and local 
officials readily concede that individual mandates on a case-by-case 
basis may indeed be worthy. However, when you look at all mandates 
spanning across the entire gamut of Federal laws and regulation, you 
begin to understand that it is the aggregate impact of all Federal 
mandates that has spurred the calls for mandate reform and relief. The 
Advisory Commission on Intergovernmental Relations testified in our 
April hearing that the number of major Federal statutes with explicit 
mandates on State and local governments went from zero during the 
period of 1941 to 1964, to 9 during the rest of the 1960s, to 25 in the 
  70s, and 27 in the 80s.However, to truly reach a better understanding 
of the Federal mandates debate, we must also look at the Federal 
funding picture vis a vis State and local governments.


             b. federal aid to state and local governments

  The record shows that Federal discretionary aid to State and local 
governments to both implement Federal policies and directives as well 
as comply with them saw a sharp drop in the 1980s.
  An examination of Census Bureau data on sources of State and local 
government revenue shows a decreasing Federal role in the funding of 
State and local governments. In 1979, the Federal government's 
contribution to State and local government revenues reached 18.6 
percent. By 1989, the Federal contribution of the State and local 
revenue pie had steadily shrunk to 13.2 percent before edging up to 
14.3 percent in 1991--the latest year that data is available.
  What contributed to declining trend in the Federal financing of State 
and local governments? A closer look at patterns in Federal 
discretionary aid programs to State and local governments during the 
1980s provides the answer. According to the Federal Funds Information 
Service, between 1981 and 1990 Federal discretionary program funding to 
State and local governments rose slightly from $47.5 billion to $51.6 
billion. However, this figure when adjusted for inflation tells a much 
different story; Federal aid dropped 28 percent in real terms over the 
decade.
  A number of vital Federal aid programs to State and local governments 
experienced sharp cuts and, in some cases, outright elimination during 
the decade. In 1986, the administration and Congress agreed to 
terminate the general revenue sharing program--a program that provided 
approximately $4.5 billion annually to local governments and allowed 
them broad discretion on how to spend the funds. Since its inception in 
1972, general revenue sharing had provided approximately $83 billion to 
State and local governments. Unfortunately, the Reagan administration 
succeeded in terminating the program and the Congress followed its 
lead. There were other important Federal-State-local programs that were 
substantially cut back between 1981 and 
 [[Page S62]] 1990. They include: Economic Development Assistance, 
Community Development Block Grants, Mass Transit, Refugee Assistance, 
and Low-Income Home Energy Assistance.
  Luckily, under both the Bush and Clinton administration, we've 
managed to restore some needed funding to many of these programs. 
Still, in real dollars, funds for discretionary aid programs to
 State and local governments remain 18 percent below their 1981 levels.


                  The Committee's Legislative Efforts

  In the last Congress, eight bills were referred to the Governmental 
Affairs Committee that touched on at least some aspect of the unfunded 
Federal mandates problem. After two hearings, we marked up a compromise 
bill that borrowed the best of the various provisions and requirements 
from the different bills. We worked closely in a deliberative, 
bipartisan fashion with the de facto leader on this issue, Senator 
Kempthorne, along with other Members and with the administration. The 
Kempthorne-Glenn Compromise had the endorsement and strong support of 
the 7 groups representing State and local governments: the National 
Governors Association; the National Conference of State Legislators; 
the Council on State Governments; the National League of Cities; the 
U.S. Conference of Mayors; the National Association of Counties; and 
the International City Management Association. It had the backing of 
the Clinton administration and was endorsed by the editorial boards of 
the New York Times, Cleveland Plain Dealer, and other newspapers across 
the country, both large and small. The bill we are introducing today as 
S. 1 largely embodies what we had last year in S. 993.
  Let me explain what the Kempthorne-Glenn bill does:
  It requires the Congressional Budget Office to conduct State, local 
and tribal cost estimates on legislation that imposes new Federal 
mandates in excess of $50 million annually onto the budgets of State, 
local, and tribal governments. The current laws requires these 
estimates at a $200 million threshold. I believe that that high a 
figure allows a lot of Federal mandates to slip through without being 
scored. $200 million spread across equally among all States may not be 
much, but if it falls particularly hard on any one region--which does 
happen with legislation around here--it is substantial. Let me make 
clear, however, that what CBO will score here are new Federal mandates, 
not what State, local, and tribal governments are spending to comply 
with existing mandates, nor what they are spending to comply with their 
own laws and mandates.
  Second, and I think most importantly, is that the bill holds Congress 
accountable for imposing additional unfunded Federal mandates. We do 
this by requiring a majority point of order vote on any legislation 
that imposes new unfunded Federal mandates in excess of $50 million 
annual cost to State, local or tribal governments.
  To avoid the point of order, the sponsor of the bill would have to 
authorize funding to cover the cost to State and local governments of 
the Federal mandate, or otherwise find ways to pay for the mandate. 
This could come from the expansion of an existing grant or subsidized 
loan program, or the creation of an new one, or perhaps the raising of 
new revenues or user fees.
  S. 1 also includes provisions for the analysis of legislation that 
imposes mandates on the private sector. CBO would have to complete a 
private sector cost estimate on bills reported by Committee with a $200 
million or more annual cost threshold.
  We do exempt certain Federal laws from this bill. Civil rights and 
Constitutional rights are excluded. National security, emergency 
legislation, and ratification of international treaties are also 
exempt.
  I want to also point out that the bill does not prohibit Congress 
from
 passing unfunded Federal mandates. There may be times when it is 
appropriate to ask State and local governments to pick up the tab for 
Federal mandates. But let that debate take place on the Senate floor 
and let there be a vote on the specific mandate in the legislation.

  The Kempthorne-Glenn Compromise also addresses regulatory mandates. 
We all know how the Federal bureaucracy can impose burdensome and 
inflexible regulations on State and local governments as well as on 
others who end up trapped in the bureaucracy's regulatory net. In the 
Committee's November hearing, we heard testimony from Susan Ritter, 
county auditor for Renville County, ND. Ms. Ritter noted that the town 
of Sherwood, in her State, with a population of 286, will have to spend 
$2,000--one half of its annual budget--on testing its water supply in 
order to comply with EPA regulations. Clearly, there is no way that the 
town is going to be able to meet this requirement.
  So, consistent with the President's Executive Orders, we have 
required that Federal agencies conduct cost-benefit analyses on major 
regulations that impact State, local and tribal governments. Further, 
agencies must develop a timely and effective means of allowing State 
and local input into the regulatory process. Given that State and local 
governments are responsible for implementing many of our Federal laws, 
it is not only fair that they be considered partners in the Federal 
regulatory process, but it is also good public policy as well. Such a 
process must also be consistent with the Administrative Procedure Act 
to ensure an open and fair process. The bill also requires Federal 
agencies to make a special effort in performing outreach to the 
smallest governments. Then maybe we'll be able to minimize the 
occurrence of situations like the one that took place in the town of 
Sherwood.
  Finally, we've asked the Advisory Commission on Intergovernmental 
Relations to work with CBO to develop a better cost estimating process 
and to monitor implementation of the legislation.


                            Closing Remarks.

  In closing, I'd like to put this issue into some larger perspective. 
As we all know, the Federal, State, and local relationship is 
complicated. It is a blurry line between where one level of 
government's responsibility ends and another's begins. All three levels 
of government need to work together in a constructive fashion to 
provide the best possible delivery of services to the American people 
in the most cost-effective fashion. After all, as Federal, State, and 
local officials, we all serve the same constituents. Further, we serve 
the American people at a time when their confidence in all three levels 
of government is probably at an all-time low. There are numerous 
explanations for this lack of confidence in government and I won't go 
into them here. Vice President Gore's National Performance Review 
attributes ``an increasingly hidebound and paralyzed intergovernmental 
process'' as at least part of the reason for why many Americans
feel that government is wasteful, inefficient, and ineffective. We need 
to restore balance to the intergovernmental partnership as well as 
strengthen it so that government at all levels can operate in a more 
  cost-effective manner.Both the administration and a number of my 
colleagues have made proposals to shift a number of Federal programs 
and responsibilities to State and local governments. Clearly, as this 
mandates debate has shown us, we ought to at least experiment to see if 
State and local governments can carry out some these programs in a more 
effective fashion than we have been doing at a Federal level. I know 
from my years as chairman of the Governmental Affairs Committee that 
Americans do want more efficient and less costly government and maybe 
one way to accomplish that objective is too grant more flexibility to 
State and local governments and let them run some of these programs. 
However, I think we should proceed with some degree of caution. Growing 
up in the Depression, I learned that State and local governments don't 
have the wherewithal and resources to meet all human needs. That's why 
President Roosevelt came through with the New Deal. So there has been 
and will continue to be, the need for a Federal presence in many 
domestic policy areas. But that shouldn't preclude us from maybe 
loosening the reigns on State and local governments some, or even 
dropping them entirely. But we should be careful, and look at it on a 
case-by-case basis.
  I believe that the Kempthorne-Glenn bill would help to restore that 
partnership and bring needed perspective to future Federal 
decisionmaking. I am 
 [[Page S63]] glad that it will be the first bill introduced in the 
Senate and look forward to working toward its very early passage.
  I want to give special thanks to my colleague from Idaho for his rule 
in developing this legislation. He has been over diligent and, as a 
former mayor, very passionate about this issue. But he has also been 
willing to engage in the give and take that goes on in developing 
legislation where there are a lot of pressures from all sides to go one 
way or the other. This has truly been a bipartisan effort and he 
deserves special credit for that.
  Mr. ROTH. Mr. President, I am very pleased to join with my colleague, 
Senator Kempthorne, in cosponsoring today the first bill introduced in 
the Senate in the 104th Congress. The ``Unfunded Mandates Reform Act of 
1995'' represents an important shift in the basic attitude of the 
Congress toward our State and local governments. It will help bring a 
better balance to our system of federalism.
  In recognition of the fundamental importance of this legislation, it 
has been assigned the bill number S. 1. As chairman of the Governmental 
Affairs Committee, where the legislation has been referred, I intend to 
act on it immediately. A joint hearing with the Budget Committee on S. 
1 has been scheduled for tomorrow morning. The next day the 
Governmental Affairs Committee is scheduled to consider the bill, and 
vote on reporting it to the Senate. It is my intention to bring the 
``Unfunded Mandates Reform Act'' to the floor sometime next week.
  This important legislation is just the first step in a long-overdue 
effort to reform the Federal regulatory process. I intend to move 
quickly in addressing the need for regulatory reform in the broader 
sense, particular as it applies to the regulation of business. I expect 
to hold the first hearing on this subject in early Fedruary.
  Again, I want to express my pleasure in joining with the Senator from 
Idaho in this important effort, embodied in the legislation he is 
introducing today. I urge my colleagues to help move it quickly to 
enactment.
  Mr. NICKLES. Mr. President, I would first like to commend Senator 
Kempthorne and Senator Glenn for once again introducing the Unfunded 
Mandates Reform Act and I am pleased to be an original cosponsor. 
Senator Kempthorne has been especially stalwart in pushing unfunded 
mandate legislation to the forefront and keeping the Senate's focus on 
this important issue. Particularly, I am pleased the legislation 
includes my language to require executive branch agencies to do a cost 
estimate of regulatory actions, which was a key component of my 
legislation, the Economic and Employment Impact Act.
  On October 27, 1993, Governors, State legislators, county officials 
and mayors from across the Nation came to Washington and declared 
``National Unfunded Mandates Day''. They sent a very loud and clear 
signal to Congress and the Clinton administration that State and local 
governments and the taxpayers can no longer afford the exploding costs 
of unfunded Federal mandates. The simple fact is when the Federal 
Government passes an unfunded mandate on the States and local 
governments, they must then raise taxes, reduce other spending or 
borrow. Mandates on the private sector also add great costs to the 
economy. The ultimate loser in this cycle is the U.S. taxpayer.
  According to a U.S. Conference of Mayors' survey of 314 cities, the 
cost of unfunded Federal mandates to cities alone for 1993 was $6.5 
billion. The Federal Clean Water Act--$3.6 billion, Federal Solid Waste 
Disposal--$1 billion, and the Federal Safe Drinking Water Act--$0.6 
billion were the most costly unfunded mandates. On the private sector 
side, the Chamber of Commerce has recently reported the result of a 
survey of its membership which identified the issue of unfunded 
mandates and their costs on the private sector and State and local 
governments as the No. 1 issue.
  Several States and local governments did their own studies of the 
costs of unfunded Federal mandates. The city of Columbus, OH found that 
compliance with Federal environmental regulations alone will cost the 
city up to $1.6 billion over the next 10 years, which equals $850 
annually per household.
  The Unfunded Mandate Reform Act forces Congress to know how much 
Federal mandates on States and local governments and the private sector 
cost. In addition, it will require that the Federal Government pays the 
costs incurred by complying with mandates on State and local 
governments. This legislation will ensure that the economic impact of 
major legislative and regulatory proposals on State and local 
governments and the private sector are given full consideration in 
Congress and the executive branch before they become policy.
  One of the primary reasons for the explosive growth in Federal 
mandates is Washington's ignorance of exactly how much they costs 
States, local governments and private citizens, regardless of how well-
intended they may be. This legislation seeks a solution to that problem 
by requiring the Congressional Budget Office [CBO] to estimate the 
impact of Federal mandates to State, local, and tribal governments as 
well as the private sector.
  In order to ensure the cooperation of CBO and the committees in 
providing this valuable economic impact information to the full Senate, 
the legislation before us requires a majority point of order to lie 
against any Federal mandate legislation which does not have a CBO cost 
estimate of the impact of that legislation on State and local 
governments or the private sector.
  Mandates costing greater than $50 million affecting State and local 
governments will not only have an estimate of the costs but also 
include the money or taxes to pay for the mandate. If it does not pass 
both tests a majority point of order will lie against the legislation.
  The economic impact analysis requirement for legislation which 
affects the private sector is vitally important. The private sector 
provision command CBO to provide an impact statement of the costs and 
the effect on the economy of legislation with mandates which exceed 
$200 million in any of the next 5 years. This requirement is similar to 
legislation, the Economic and Employment Impact Act, Senator Reid and 
myself offered as an amendment to the National Competitiveness Act, and 
was approved by voice vote by the full Senate.
  Another important element of this legislation that is also a key 
component of the Economic and Employment Impact Act, is the requirement 
for economic impact analysis of regulatory actions exceeding $100 
million by executive branch agencies. The author of this act should be 
commended for requiring a cost analysis for regulations affecting State 
and local governments and the private sector.
  The cost of Federal mandates has unleashed havoc upon State and local 
governments and the private sector. Congress and the administration 
must stop passing the costs of their good ideas without knowing the 
costs of those ideas and assuming responsibility for the undue economic 
burdens on the local governments, the private sector and the U.S. 
taxpayer.
                                 ______

      By Mr. GRASSLEY (for himself, Mr. Lieberman, Mr. Dole, Mr. 
        Nickles, Mr. Roth, Mr. Glenn, Mr. Smith, Mr. Specter, Mr. 
        Brown, Mr. Inhofe, Mr. Thompson, Ms. Snowe, Mr. Abraham, Mr. 
        Santorum, Mr. Craig Thomas, Mr. Cohen, Mr. Craig, Mrs. Boxer, 
        Mr. Robb, Mr. Kohl, Mr. Warner, Mr. Baucus, Mr. Helms, Mr. 
        Gregg, Mr. DeWine, Mr. Campbell, Mr. Bennett, Mr. Mack, Mr. 
        Kerrey, Mrs. Kassebaum, and Mr. Lott):
  S. 2. A bill to make certain laws applicable to the legislative 
branch of the Federal Government; read twice.


              the congressional accountability act of 1995

  Mr. DOLE. Mr. President, for far too long, Congress has imposed new 
rules and regulations on the private sector, while seeking to exempt 
itself from those same rules.
  Not surprisingly, many of our citizens have begun to view the Senate 
and the House of Representatives not as the people's body, but as the 
``imperial congress,'' as an institution that considers itself above 
the law and without accountability.
  This past election day, the American people finally said ``enough is 
enough.'' Not only do the American people want 
 [[Page S64]] less government, less regulation, and lower taxes, they 
also want Congress to clean up its own act by living under the very 
laws we seek to impose on everyone else. After all, what's good for the 
goose is certainly good for the gander.
  S. 2, the Congressional Accountability Act, is a key element of our 
effort to put the institution of Congress back in the good graces of 
the American people. Later today, the House will pass its own version 
of congressional-coverage legislation, and perhaps as early as 
tomorrow, S. 2 will be passed here in the Senate.
  In a nutshell, S. 2 forces Congress to comply with the following laws 
that regulate private employment and the private-sector workplace: (1) 
The Fair Labor Standards Act, (2) The Federal Labor Management 
Relations Act, (3) Title VII of the Civil Rights Act of 1964, (4) The 
Americans with Disabilities Act, (5) The Rehabilitation Act of 1973, 
(6) The Age Discrimination in Employment Act, (7) The Family and 
Medical Leave Act, (8) The Occupational Safety and Health Act, (9) The 
Employee Polygraph Protection Act, (10) The Worker Adjustment and 
Retraining Notification Act, and (11) The Veterans Reemployment Act.
  All these laws now apply to the private sector, and with the passage 
of S. 2, they will soon apply to Congress as well.
  To enforce the application of the laws to Congress, S. 2 establishes 
an office of compliance with a 5-member board of directors. The 
directors on the board will be jointly appointed by the Senate majority 
leader, the Senate minority leader, the Speaker of the House of 
Representatives, and the House minority leader. The office will also 
have a general counsel, an executive director, and two deputy executive 
directors, one for the Senate and one for the House. Each of the deputy 
executive directors will be responsible for promulgating the 
implementing regulations for his or her respective house.
  In addition, S. 2 requires that any future legislation that affects 
the terms and conditions of private employment must be accompanied by a 
report describing the manner in which the legislation will apply to 
Congress. If any provision of the proposed law does not apply to 
Congress, the report must include a statement explaining why this is 
so. This reporting requirement will help ensure that Congress resists 
the temptation of exempting itself from future regulations and rules.
  Of course, S. 2 may herald a new era of regulatory caution, where 
Congress thinks twice before imposing a new government-crafted 
requirement on the private sector. It's one thing for Congress to 
create a new regulatory burden; it's something quite different when 
Congress has to bear the burden too.
  Finally, Mr. President, I want to congratulate my distinguished 
colleague, Senator Chuck Grassley, for spearheading the congressional-
coverage effort here in the Senate. Without his hard work and 
commitment, S. 2 would not be the priority that it is today. I also 
want to take a moment to recognize my colleague from Oklahoma, Senator 
Don Nickles, for his important contribution as well.
  Mr. President, I ask unanimous consent that the full text of S. 2 be 
reprinted in the Record immediately after my remarks.
                                  S. 2

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Congressional Accountability Act of 1995''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

                            TITLE I--GENERAL

Sec. 101. Definitions.
Sec. 102. Application of laws.

             TITLE II--EXTENSION OF RIGHTS AND PROTECTIONS

Part A--Employment Discrimination, Family and Medical Leave, Fair Labor 
    Standards, Employee Polygraph Protection, Worker Adjustment and 
 Retraining, Employment and Reemployment of Veterans, and Intimidation

Sec. 201. Rights and protections under title VII of the Civil Rights 
              Act of 1964, the Age Discrimination in Employment Act of 
              1967, the Rehabilitation Act of 1973, and title I of the 
              Americans with Disabilities Act of 1990.
Sec. 202. Rights and protections under the Family and Medical Leave Act 
              of 1993.
Sec. 203. Rights and protections under the Fair Labor Standards Act of 
              1938.
Sec. 204. Rights and protections under the Employee Polygraph 
              Protection Act of 1988.
Sec. 205. Rights and protections under the Worker Adjustment and 
              Retraining Notification Act.
Sec. 206. Rights and protections relating to veterans' employment and 
              reemployment.
Sec. 207. Prohibition of intimidation or reprisal.

  Part B--Public Services and Accommodations Under the Americans With 
                        Disabilities Act of 1990

Sec. 210. Rights and protections under the Americans with Disabilities 
              Act of 1990 relating to public services and 
              accommodations; procedures for remedy of violations.

           Part C--Occupational Safety and Health Act of 1970

Sec. 215. Rights and protections under the Occupational Safety and 
              Health Act of 1970; procedures for remedy of violations.

                   Part D--Labor-management Relations

Sec. 220. Application of chapter 71 of title 5, United States code, 
              relating to Federal service labor-management relations; 
              procedures for remedy of violations.

                            Part E--General

Sec. 225. Generally applicable remedies and limitations.

                             Part F--Study

Sec. 230. Study and recommendations regarding General Accounting 
              Office, Government Printing Office, and Library of 
              Congress.

                    TITLE III--OFFICE OF COMPLIANCE

Sec. 301. Establishment of Office of Compliance.
Sec. 302. Officers, staff, and other personnel.
Sec. 303. Procedural rules.
Sec. 304. Substantive regulations.
Sec. 305. Expenses.

  TITLE IV--ADMINISTRATIVE AND JUDICIAL DISPUTE-RESOLUTION PROCEDURES

Sec. 401. Procedure for consideration of alleged violations.
Sec. 402. Counseling.
Sec. 403. Mediation.
Sec. 404. Election of proceeding.
Sec. 405. Complaint and hearing.
Sec. 406. Appeal to the Board.
Sec. 407. Judicial review of Board decisions and enforcement.
Sec. 408. Civil action.
Sec. 409. Judicial review of regulations.
Sec. 410. Other judicial review prohibited.
Sec. 411. Effect of failure to issue regulations.
Sec. 412. Expedited review of certain appeals.
Sec. 413. Privileges and immunities.
Sec. 414. Settlement of complaints.
Sec. 415. Payments.
Sec. 416. Confidentiality.

                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Exercise of rulemaking powers.
Sec. 502. Political affiliation and place of residence.
Sec. 503. Nondiscrimination rules of the House and Senate.
Sec. 504. Technical and conforming amendments.
Sec. 505. Judicial branch coverage study.
Sec. 506. Savings provisions.
Sec. 507. Severability.
                            TITLE I--GENERAL
     SEC. 101. DEFINITIONS.

       Except as otherwise specifically provided in this Act, as 
     used in this Act:
       (1) Board.--The term ``Board'' means the Board of Directors 
     of the Office of Compliance.
       (2) Chair.--The term ``Chair'' means the Chair of the Board 
     of Directors of the Office of Compliance.
       (3) Covered employee.--The term ``covered employee'' means 
     any employee of--
       (A) the House of Representatives;
       (B) the Senate;
       (C) the Capitol Guide Service;
       (D) the Capitol Police;
       (E) the Congressional Budget Office;
       (F) the Office of the Architect of the Capitol;
       (G) the Office of the Attending Physician;
       (H) the Office of Compliance; or
       (I) the Office of Technology Assessment.
       (4) Employee.--The term ``employee'' includes an applicant 
     for employment and a former employee.
       (5) Employee of the office of the architect of the 
     capitol.--The term ``employee of the Office of the Architect 
     of the Capitol'' includes any employee of the Office of the 
     Architect of the Capitol, the Botanic Garden, or the Senate 
     Restaurants.
       (6) Employee of the capitol police.--The term ``employee of 
     the Capitol Police'' includes any member or officer of the 
     Capitol Police.
       (7) Employee of the house of representatives.--The term 
     ``employee of the House of Representatives'' includes an 
     individual occupying a position the pay for which is 
     disbursed by the Clerk of the House of Representatives, or 
     another official designated 
      [[Page S65]] by the House of Representatives, or any 
     employment position in an entity that is paid with funds 
     derived from the clerk-hire allowance of the House of 
     Representatives but not any such individual employed by any 
     entity listed in subparagraphs (C) through (I) of paragraph 
     (3).
       (8) Employee of the senate.--The term ``employee of the 
     Senate'' includes any employee whose pay is disbursed by the 
     Secretary of the Senate, but not any such individual employed 
     by any entity listed in subparagraphs (C) through (I) of 
     paragraph (3).
       (9) Employing office.--The term ``employing office'' 
     means--
       (A) the personal office of a Member of the House of 
     Representatives or of a Senator;
       (B) a committee of the House of Representatives or the 
     Senate or a joint committee;
       (C) any other office headed by a person with the final 
     authority to appoint, hire, discharge, and set the terms, 
     conditions, or privileges of the employment of an employee of 
     the House of Representatives or the Senate; or
       (D) the Capitol Guide Board, the Capitol Police Board, the 
     Congressional Budget Office, the Office of the Architect of 
     the Capitol, the Office of the Attending Physician, the 
     Office of Compliance, and the Office of Technology 
     Assessment.
       (10) Executive director.--The term ``Executive Director'' 
     means the Executive Director of the Office of Compliance.
       (11) General counsel.--The term ``General Counsel'' means 
     the General Counsel of the Office of Compliance.
       (12) Office.--The term ``Office'' means the Office of 
     Compliance.

     SEC. 102. APPLICATION OF LAWS.

       (a) Laws Made Applicable.--The following laws shall apply, 
     as prescribed by this Act, to the legislative branch of the 
     Federal Government:
       (1) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 
     seq.).
       (2) Title VII of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e et seq.).
       (3) The Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.).
       (4) The Age Discrimination in Employment Act of 1967 (29 
     U.S.C. 621 et seq.).
       (5) The Family and Medical Leave Act of 1993 (29 U.S.C. 
     2611 et seq.).
       (6) The Occupational Safety and Health Act of 1970 (29 
     U.S.C. 651 et seq.).
       (7) Chapter 71 (relating to Federal service labor-
     management relations) of title 5, United States Code.
       (8) The Employee Polygraph Protection Act of 1988 (29 
     U.S.C. 2001 et seq.).
       (9) The Worker Adjustment and Retraining Notification Act 
     (29 U.S.C. 2101 et seq.).
       (10) The Rehabilitation Act of 1973 (29 U.S.C. 701 et 
     seq.).
       (11) Chapter 43 (relating to veterans' employment and 
     reemployment) of title 38, United States Code.
       (b) Laws Which may be Made Applicable.--
       (1) In general.--The Board shall review provisions of 
     Federal law (including regulations) relating to (A) the terms 
     and conditions of employment (including hiring, promotion, 
     demotion, termination, salary, wages, overtime compensation, 
     benefits, work assignments or reassignments, grievance and 
     disciplinary procedures, protection from discrimination in 
     personnel actions, occupational health and safety, and family 
     and medical and other leave) of employees, and (B) access to 
     public services and accommodations,
       (2) Board report.--Beginning on December 31, 1996, and 
     every 2 years thereafter, the Board shall report on (A) 
     whether or to what degree the provisions described in 
     paragraph (1) are applicable or inapplicable to the 
     legislative branch, and (B) with respect to provisions 
     inapplicable to the legislative branch, whether such 
     provisions should be made applicable to the legislative 
     branch. The presiding officers of the House of 
     Representatives and the Senate shall cause each such report 
     to be printed in the Congressional Record and each such 
     report shall be referred to the committees of the House of 
     Representatives and the Senate with jurisdiction.
       (3) Reports of congressional committees.--Each report 
     accompanying any bill or joint resolution relating to terms 
     and conditions of employment or access to public services or 
     accommodations reported by a committee of the House of 
     Representatives or the Senate shall--
       (A) describe the manner in which the provisions of the bill 
     or joint resolution apply to the legislative branch; or
       (B) in the case of a provision not applicable to the 
     legislative branch, include a statement of the reasons the 
     provision does not apply.

     On the objection of any Member, it shall not be in order for 
     the Senate or the House of Representatives to consider any 
     such bill or joint resolution if the report of the committee 
     on such bill or joint resolution does not comply with the 
     provisions of this paragraph. This paragraph may be waived in 
     either House by majority vote of that House.
             TITLE II--EXTENSION OF RIGHTS AND PROTECTIONS

PART A--EMPLOYMENT DISCRIMINATION, FAMILY AND MEDICAL LEAVE, FAIR LABOR 
    STANDARDS, EMPLOYEE POLYGRAPH PROTECTION, WORKER ADJUSTMENT AND 
 RETRAINING, EMPLOYMENT AND REEMPLOYMENT OF VETERANS, AND INTIMIDATION

     SEC. 201. RIGHTS AND PROTECTIONS UNDER TITLE VII OF THE CIVIL 
                   RIGHTS ACT OF 1964, THE AGE DISCRIMINATION IN 
                   EMPLOYMENT ACT OF 1967, THE REHABILITATION ACT 
                   OF 1973, AND TITLE I OF THE AMERICANS WITH 
                   DISABILITIES ACT OF 1990.

       (a) Discriminatory Practices Prohibited.--All personnel 
     actions affecting covered employees shall be made free from 
     any discrimination based on--
       (1) race, color, religion, sex, or national origin, within 
     the meaning of section 703 of the Civil Rights Act of 1964 
     (42 U.S.C. 2000e-2);
       (2) age, within the meaning of section 15 of the Age 
     Discrimination in Employment Act of 1967 (29 U.S.C. 633a); or
       (3) disability, within the meaning of section 501 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 791) and sections 102 
     through 104 of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12112-12114).
       (b) Remedy.--
       (1) Civil rights.--The remedy for a violation of subsection 
     (a)(1) shall be--
       (A) such remedy as would be appropriate if awarded under 
     section 706(g) of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e-5(g)); and
       (B) such compensatory damages as would be appropriate if 
     awarded under section 1977 of the Revised Statutes (42 U.S.C. 
     1981), or as would be appropriate if awarded under sections 
     1977A(a)(1), 1977A(b)(2), and irrespective of the size of the 
     employing office, 1977A(b)(3)(D) of the Revised Statutes (42 
     U.S.C. 1981a(a)(1), 1981a(b)(2), and 1981a(b)(3)(D)).
       (2) Age discrimination.--The remedy for a violation of 
     subsection (a)(2) shall be--
       (A) such remedy as would be appropriate if awarded under 
     section 15(c) of the Age Discrimination in Employment Act of 
     1967 (29 U.S.C. 633a(c)); and
       (B) such liquidated damages as would be appropriate if 
     awarded under section 7(b) of such Act (29 U.S.C. 626(b)).

     In addition, the waiver provisions of section 7(f) of such 
     Act (29 U.S.C. 626(f)) shall apply to covered employees.
       (3) Disabilities discrimination.--The remedy for a 
     violation of subsection (a)(3) shall be--
       (A) such remedy as would be appropriate if awarded under 
     section 505(a)(1) of the Rehabilitation Act of 1973 (29 
     U.S.C. 794a(a)(1)) or section 107(a) of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12117(a)); and
       (B) such compensatory damages as would be appropriate if 
     awarded under sections 1977A(a)(2), 1977A(a)(3), 1977A(b)(2), 
     and, irrespective of the size of the employing office, 
     1977A(b)(3)(D) of the Revised Statutes (42 U.S.C. 
     1981a(a)(2), 1981a(a)(3), 1981a(b)(2), and 1981a(b)(3)(D)).
       (c) Application to General Accounting Office, Government 
     Printing Office, and Library of Congress.--
       (1) Section 717 of the civil rights act of 1964.--Section 
     717(a) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-16) 
     is amended by--
       (A) striking ``legislative and'';
       (B) striking ``branches'' and inserting ``branch''; and
       (C) inserting ``Government Printing Office, the General 
     Accounting Office, and the'' after ``and in the''.
       (2) Section 15 of the age discrimination in employment act 
     of 1967.--Section 15(a) of the Age Discrimination in 
     Employment Act of 1967 (29 U.S.C. 633a(a)) is amended by--
       (A) striking ``legislative and'';
       (B) striking ``branches'' and inserting ``branch''; and
       (C) inserting ``Government Printing Office, the General 
     Accounting Office, and the'' after ``and in the''.
       (3) Section 509 of the americans with disabilities act of 
     1990.--Section 509 of the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12209) is amended--
       (A) by striking subsections (a) and (b) of section 509;
       (B) in subsection (c), by striking ``(c) Instrumentalities 
     of Congress.--'' and inserting ``The General Accounting 
     Office, the Government Printing Office, and the Library of 
     Congress shall be covered as follows:'';
       (C) by striking the second sentence of paragraph (2);
       (D) in paragraph (4), by striking ``the instrumentalities 
     of the Congress include'' and inserting ``the term 
     `instrumentality of the Congress' means'', by striking ``the 
     Architect of the Capitol, the Congressional Budget Office'', 
     by inserting ``and'' before ``the Library'', and by striking 
     ``the Office of Technology Assessment, and the United States 
     Botanic Garden'';
       (E) by redesignating paragraph (5) as paragraph (7) and by 
     inserting after paragraph (4) the following new paragraph:
       ``(5) Enforcement of employment rights.--The remedies and 
     procedures set forth in section 717 of the Civil Rights Act 
     of 1964 (42 U.S.C. 2000e-16) shall be available to any 
     employee of an instrumentality of the Congress who alleges a 
     violation of the rights and protections under sections 102 
     through 104 of this Act that are made applicable by this 
     section, except that the authorities of the Equal Employment 
     Opportunity Commission shall be exercised by the chief 
     official of the instrumentality of the Congress.''; and
       (F) by amending the title of the section to read 
     ``INSTRUMENTALITIES OF THE CONGRESS''.
       (d) Effective Date.--This section shall take effect 1 year 
     after the date of the enactment of this Act.
     [[Page S66]] SEC. 202. RIGHTS AND PROTECTIONS UNDER THE 
                   FAMILY AND MEDICAL LEAVE ACT OF 1993.

       (a) Family and Medical Leave Rights and Protections 
     Provided.--
       (1) In general.--The rights and protections established by 
     sections 101 through 105 of the Family and Medical Leave Act 
     of 1993 (29 U.S.C. 2611 through 2615) shall apply to covered 
     employees.
       (2) Definition.--For purposes of the application described 
     in paragraph (1)--
       (A) the term ``employer'' as used in the Family and Medical 
     Leave Act of 1993 means any employing office, and
       (B) the term ``eligible employee'' as used in the Family 
     and Medical Leave Act of 1993 means a covered employee who 
     has been employed in any employing office for 12 months and 
     for at least 1,250 hours of employment during the previous 12 
     months.
       (b) Remedy.--The remedy for a violation of subsection (a) 
     shall be such remedy, including liquidated damages, as would 
     be appropriate if awarded under paragraph (1) of section 
     107(a) of the Family and Medical Leave Act of 1993 (29 U.S.C. 
     2617(a)(1)).
       (c) Application to General Accounting Office and Library of 
     Congress.--
       (1) Amendments to the family and medical leave act of 
     1993.--
       (A) Coverage.--Section 101(4)(A) of the Family and Medical 
     Leave Act of 1993 (29 U.S.C. 2611(4)(A)) is amended by 
     striking ``and'' at the end of clause (ii), by striking the 
     period at the end of clause (iii) and inserting ``; and'', 
     and by adding after clause (iii) the following:
       ``(iv) includes the General Accounting Office and the 
     Library of Congress.''.
       (B) Enforcement.--Section 107 of the Family and Medical 
     Leave Act of 1993 (29 U.S.C 2617) is amended by adding at the 
     end the following:
       ``(f) General Accounting Office and Library of Congress.--
     In the case of the General Accounting Office and the Library 
     of Congress, the authority of the Secretary of Labor under 
     this title shall be exercised respectively by the Comptroller 
     General of the United States and the Librarian of 
     Congress.''.
       (2) Conforming amendment to title 5, united states code.--
     Section 6381(1)(A) of title 5, United States Code, is amended 
     by striking ``and'' after ``District of Columbia'' and 
     inserting before the semicolon the following: ``, and any 
     employee of the General Accounting Office or the Library of 
     Congress''.
       (d) Regulations.--
       (1) In general.--The Board shall, pursuant to section 304, 
     issue regulations to implement the rights and protections 
     under this section.
       (2) Agency regulations.--The regulations issued under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Secretary of Labor to implement the 
     statutory provisions referred to in subsection (a) except 
     insofar as the Board may determine, for good cause shown and 
     stated together with the regulation, that a modification of 
     such regulations would be more effective for the 
     implementation of the rights and protections under this 
     section.
       (e) Effective Date.--
       (1) In general.--Subsections (a) and (b) shall be effective 
     1 year after the date of the enactment of this Act.
       (2) General accounting office and library of congress.--
     Subsection (c) shall be effective 1 year after transmission 
     to the Congress of the study under section 230.

     SEC. 203. RIGHTS AND PROTECTIONS UNDER THE FAIR LABOR 
                   STANDARDS ACT OF 1938.

       (a) Fair Labor Standards.--
       (1) In general.--The rights and protections established by 
     subsections (a)(1) and (d) of section 6, section 7, and 
     section 12(c) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206 (a)(1) and (d), 207, 212(c)) shall apply to 
     covered employees.
       (2) Interns.--For the purposes of this section, the term 
     ``covered employee'' does not include an intern as defined in 
     regulations under subsection (c).
       (3) Compensatory time.--Except as provided in regulations 
     under subsection (c)(3), covered employees may not receive 
     compensatory time in lieu of overtime compensation.
       (b) Remedy.--The remedy for a violation of subsection (a) 
     shall be such remedy, including liquidated damages, as would 
     be appropriate if awarded under section 16(b) of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 216(b)).
       (c) Regulations To Implement Section.--
       (1) In general.--The Board shall, pursuant to section 304, 
     issue regulations to implement this section.
       (2) Agency regulations.--Except as provided in paragraph 
     (3), the regulations issued under paragraph (1) shall be the 
     same as substantive regulations promulgated by the Secretary 
     of Labor to implement the statutory provisions referred to in 
     subsection (a) except insofar as the Board may determine, for 
     good cause shown and stated together with the regulation, 
     that a modification of such regulations would be more 
     effective for the implementation of the rights and 
     protections under this section.
       (3) Irregular work schedules.--The Board shall issue 
     regulations for covered employees whose work schedules 
     directly depend on the schedule of the House of 
     Representatives or the Senate that shall be comparable to the 
     provisions in the Fair Labor Standards Act of 1938 that apply 
     to employees who have irregular work schedules.
       (d) Application to the Government Printing Office.--Section 
     3(e)(2)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
     203(e)(2)(A)) is amended--
       (1) in clause (iii), by striking ``legislative or'',
       (2) by striking ``or'' at the end of clause (iv),
       (3) by striking the semicolon at the end of clause (v) and 
     inserting ``, or'' and by adding after clause (v) the 
     following:
       ``(vi) the Government Printing Office;''.
       (e) Effective Date.--Subsections (a) and (b) shall be 
     effective 1 year after the date of the enactment of this Act.
     SEC. 204. RIGHTS AND PROTECTIONS UNDER THE EMPLOYEE POLYGRAPH 
                   PROTECTION ACT OF 1988.

       (a) Polygraph Practices Prohibited.--
       (1) In general.--No employing office, irrespective of 
     whether a covered employee works in that employing office, 
     may require a covered employee to take a lie detector test 
     where such a test would be prohibited if required by an 
     employer under paragraph (1), (2), or (3) of section 3 of the 
     Employee Polygraph Protection Act of 1988 (29 U.S.C. 2002(1), 
     (2), or (3)). In addition, the waiver provisions of section 
     6(d) of such Act (29 U.S.C. 2005(d)) shall apply to covered 
     employees.
       (2) Definitions.--For purposes of this section, the term 
     ``covered employee'' shall include employees of the General 
     Accounting Office and the Library of Congress and the term 
     ``employing office'' shall include the General Accounting 
     Office and the Library of Congress.
       (3) Capitol police.--Nothing in this section shall preclude 
     the Capitol Police from using lie detector tests in 
     accordance with regulations under subsection (c).
       (b) Remedy.--The remedy for a violation of subsection (a) 
     shall be such remedy as would be appropriate if awarded under 
     section 6(c)(1) of the Employee Polygraph Protection Act of 
     1988 (29 U.S.C. 2005(c)(1)).
       (c) Regulations To Implement Section.--
       (1) In general.--The Board shall, pursuant to section 304, 
     issue regulations to implement this section.
       (2) Agency regulations.--The regulations issued under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Secretary of Labor to implement the 
     statutory provisions referred to in subsections (a) and (b) 
     except insofar as the Board may determine, for good cause 
     shown and stated together with the regulation, that a 
     modification of such regulations would be more effective for 
     the implementation of the rights and protections under this 
     section.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), 
     subsections (a) and (b) shall be effective 1 year after the 
     date of the enactment of this Act.
       (2) General accounting office and library of congress.--
     This section shall be effective with respect to the General 
     Accounting Office and the Library of Congress 1 year after 
     transmission to the Congress of the study under section 230.

     SEC. 205. RIGHTS AND PROTECTIONS UNDER THE WORKER ADJUSTMENT 
                   AND RETRAINING NOTIFICATION ACT.

       (a) Worker Adjustment and Retraining Notification Rights.--
       (1) In general.--No employing office shall be closed or a 
     mass layoff ordered within the meaning of section 3 of the 
     Worker Adjustment and Retraining Notification Act (29 U.S.C. 
     2102) until the end of a 60-day period after the employing 
     office serves written notice of such prospective closing or 
     layoff to representatives of covered employees or, if there 
     are no representatives, to covered employees.
       (2) Definitions.--For purposes of this section, the term 
     ``covered employee'' shall include employees of the General 
     Accounting Office and the Library of Congress and the term 
     ``employing office'' shall include the General Accounting 
     Office and the Library of Congress.
       (b) Remedy.--The remedy for a violation of subsection (a) 
     shall be such remedy as would be appropriate if awarded under 
     paragraphs (1), (2), and (4) of section 5(a) of the Worker 
     Adjustment and Retraining Notification Act (29 U.S.C. 
     2104(a)(1), (2), and (4)).
       (c) Regulations to Implement Section.--
       (1) In general.--The Board shall, pursuant to section 304, 
     issue regulations to implement this section.
       (2) Agency regulations.--The regulations issued under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Secretary of Labor to implement the 
     statutory provisions referred to in subsection (a) except 
     insofar as the Board may determine, for good cause shown and 
     stated together with the regulation, that a modification of 
     such regulations would be more effective for the 
     implementation of the rights and protections under this 
     section.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), 
     subsections (a) and (b) shall be effective 1 year after the 
     date of the enactment of this Act.
       (2) General accounting office and library of congress.--
     This section shall be effective with respect to the General 
     Accounting Office and the Library of Congress 1 year after 
     transmission to the Congress of the study under section 230.
     [[Page S67]] SEC. 206. RIGHTS AND PROTECTIONS RELATING TO 
                   VETERANS' EMPLOYMENT AND REEMPLOYMENT.

       (a) Employment and Reemployment Rights of Members of the 
     Uniformed Services.--
       (1) In general.--It shall be unlawful for an employing 
     office to--
       (A) discriminate, within the meaning of subsections (a) and 
     (b) of section 4311 of title 38, United States Code, against 
     an eligible employee;
       (B) deny to an eligible employee reemployment rights within 
     the meaning of sections 4312 and 4313 of title 38, United 
     States Code; or
       (C) deny to an eligible employee benefits within the 
     meaning of sections 4316, 4317, and 4318 of title 38, United 
     States Code.
       (2) Definitions.--For purposes of this section--
       (A) the term ``eligible employee'' means a covered employee 
     performing service in the uniformed services, within the 
     meaning of section 4303(13) of title 38, United States Code, 
     whose service has not been terminated upon occurrence of any 
     of the events enumerated in section 4304 of title 38, United 
     States Code,
       (B) the term ``covered employee'' includes employees of the 
     General Accounting Office and the Library of Congress, and
       (C) the term ``employing office'' includes the General 
     Accounting Office and the Library of Congress.
       (b) Remedy.--The remedy for a violation of subsection (a) 
     shall be such remedy as would be appropriate if awarded under 
     paragraphs (1), (2)(A), and (3) of section 4323(c) of title 
     38, United States Code.
       (c) Regulations To Implement Section.--
       (1) In general.--The Board shall, pursuant to section 304, 
     issue regulations to implement this section.
       (2) Agency regulations.--The regulations issued under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Secretary of Labor to implement the 
     statutory provisions referred to in subsection (a) except to 
     the extent that the Board may determine, for good cause shown 
     and stated together with the regulation, that a modification 
     of such regulations would be more effective for the 
     implementation of the rights and protections under this 
     section.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), 
     subsections (a) and (b) shall be effective 1 year after the 
     date of the enactment of this Act.
       (2) General accounting office and library of Congress.--
     This section shall be effective with respect to the General 
     Accounting Office and the Library of Congress 1 year after 
     transmission to the Congress of the study under section 230.
     SEC. 207. PROHIBITION OF INTIMIDATION OR REPRISAL.

       (a) In General.--It shall be unlawful for an employing 
     office to intimidate, take reprisal against, or otherwise 
     discriminate against, any covered employee because the 
     covered employee has opposed any practice made unlawful by 
     this Act, or because the covered employee has initiated 
     proceedings, made a charge, or testified, assisted, or 
     participated in any manner in a hearing or other proceeding 
     under this Act.
       (b) Remedy.--The remedy available for a violation of 
     subsection (a) shall be such legal or equitable remedy as 
     would be appropriate.

  PART B--PUBLIC SERVICES AND ACCOMMODATIONS UNDER THE AMERICANS WITH 
                        DISABILITIES ACT OF 1990

     SEC. 210. RIGHTS AND PROTECTIONS UNDER THE AMERICANS WITH 
                   DISABILITIES ACT OF 1990 RELATING TO PUBLIC 
                   SERVICES AND ACCOMMODATIONS; PROCEDURES FOR 
                   REMEDY OF VIOLATIONS.

       (a) Entities Subject to This Section.--The requirements of 
     this section shall apply to--
       (1) each office of the Senate, including each office of a 
     Senator and each committee;
       (2) each office of the House of Representatives, including 
     each office of a Member of the House of Representatives and 
     each committee;
       (3) each joint committee of the Congress;
       (4) the Capitol Guide Service;
       (5) the Capitol Police;
       (6) the Congressional Budget Office;
       (7) the Office of the Architect of the Capitol (including 
     the Senate Restaurants and the Botanic Garden);
       (8) the Office of the Attending Physician;
       (9) the Office of Compliance; and
       (10) the Office of Technology Assessment.
       (b) Discrimination in Public Services and Accommodations.--
       (1) Rights and protections.--The rights and protections 
     against discrimination in the provision of public services 
     and accommodations established by sections 201 through 230, 
     302, 303, and 309 of the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12131-12150, 12182, 12183, and 12189) shall 
     apply to the entities listed in subsection (a).
       (2) Definitions.--For purposes of the application of title 
     II of the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12131 et seq.) under this section, the term ``public entity'' 
     means any entity listed in subsection (a) that provides 
     public services, programs, or activities.
       (c) Remedy.--The remedy for a violation of subsection (b) 
     shall be such remedy as would be appropriate if awarded under 
     section 203 or 308(a) of the Americans with Disabilities Act 
     of 1990 (42 U.S.C. 12133, 12188(a)), except that, with 
     respect to any claim of employment discrimination asserted by 
     any covered employee, the exclusive remedy shall be under 
     section 201 of this title.
       (d) Available Procedures.--
       (1) Charge filed with general counsel.--A qualified 
     individual with a disability, as defined in section 201(2) of 
     the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12131(2)), who alleges a violation of subsection (b) by an 
     entity listed in subsection (a), may file a charge against 
     any entity responsible for correcting the violation with the 
     General Counsel within 180 days of the occurrence of the 
     alleged violation. The General Counsel shall investigate the 
     charge.
       (2) Mediation.--If, upon investigation under paragraph (1), 
     the General Counsel believes that a violation of subsection 
     (b) may have occurred and that mediation may be helpful in 
     resolving the dispute, the General Counsel may request, but 
     not participate in, mediation under section 403 between the 
     charging individual and any entity responsible for correcting 
     the alleged violation.
       (3) Complaint, hearing, board review.--If mediation under 
     paragraph (2) has not succeeded in resolving the dispute, and 
     if the General Counsel believes that a violation of 
     subsection (b) may have occurred, the General Counsel may 
     file with the Office a complaint against any entity 
     responsible for correcting the violation. The complaint shall 
     be submitted to a hearing officer for decision pursuant to 
     section 405 and any person who has filed a charge under 
     paragraph (1) may intervene as of right, with the full rights 
     of a party. The decision of the hearing officer shall be 
     subject to review by the Board pursuant to section 406.
       (4) Judicial review.--A charging individual who has 
     intervened under paragraph (3) or any respondent to the 
     complaint, if aggrieved by a final decision of the Board 
     under paragraph (3), may file a petition for review in the 
     United States Court of Appeals for the Federal Circuit, 
     pursuant to section 407.
       (e) Regulations To Implement Section.--
       (1) In general.--The Board shall, pursuant to section 304, 
     issue regulations to implement this section.
       (2) Agency regulations.--The regulations issued under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Attorney General and the Secretary of 
     Transportation to implement the statutory provisions referred 
     to in subsection (b) to the extent that the Board may 
     determine, for good cause shown and stated together with the 
     regulation, that a modification of such regulations would be 
     more effective for the implementation of the rights and 
     protections under this section.
       (f) Periodic Inspections; Report to Congress; Initial 
     Study.--
       (1) Periodic inspections.--On a regular basis, and at least 
     once each Congress, the General Counsel shall inspect the 
     facilities of the entities listed in subsection (a) to ensure 
     compliance with subsection (b).
       (2) Report.--On the basis of each periodic inspection, the 
     General Counsel shall, at least once every Congress, prepare 
     and submit a report--
       (A) to the Speaker of the House of Representatives, the 
     President pro tempore of the Senate, the Architect of the 
     Capitol, and to the entity responsible, as determined under 
     regulations issued by the Board under section 304 of this 
     Act, for correcting the violation of this section uncovered 
     by such inspection, and
       (B) containing the results of the periodic inspection, 
     describing any steps necessary to correct any violation of 
     this section, assessing any limitations in accessibility to 
     and usability by individuals with disabilities associated 
     with each violation, and the estimated cost and time needed 
     for abatement.
       (3) Initial period for study and corrective action.--The 
     period from the date of the enactment of this Act until 
     December 31, 1996, shall be available to the Office of the 
     Architect of the Capitol and other entities subject to this 
     section to identify any violations of subsection (b), to 
     determine the costs of compliance, and to take any necessary 
     corrective action to abate any violations. The Office shall 
     assist the Office of the Architect of the Capitol and other 
     entities listed in subsection (a) by arranging for 
     inspections and other technical assistance at their request. 
     Prior to July 1, 1996, the General Counsel shall conduct a 
     thorough inspection under paragraph (1) and shall submit the 
     report under paragraph (2) for the 104th Congress.
       (4) Detailed personnel.--The Attorney General, the 
     Secretary of Transportation, and the Architectural and 
     Transportation Barriers Compliance Board may, on request of 
     the Executive Director, detail to the Office such personnel 
     as may be necessary to advise and assist the Office in 
     carrying out its duties under this section.
       (g) Application of Americans with Disabilities Act of 1990 
     to the Provision of Public Services and Accommodations by the 
     General Accounting Office, the Government Printing Office, 
     and the Library of Congress.--Section 509 of the Americans 
     with Disabilities Act of 1990 (42 U.S.C. 12209)), as amended 
     by section 201(c) of this Act, is amended by adding the 
     following new paragraph:
     [[Page S68]]   ``(6) Enforcement of rights to public services 
     and accommodations.--The remedies and procedures set forth in 
     section 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-
     16) shall be available to any qualified person with a 
     disability who is a visitor, guest, or patron of an 
     instrumentality of Congress and who alleges a violation of 
     the rights and protections under sections 201 through 230 or 
     section 302 or 303 of this Act that are made applicable by 
     this section, except that the authorities of the Equal 
     Employment Opportunity Commission shall be exercised by the 
     chief official of the instrumentality of the Congress.''.
       (h) Effective Date.--
       (1) In general.--Subsections (b), (c), and (d) shall be 
     effective on January 1, 1997.
       (2) General accounting office, government printing office, 
     and library of congress.--Subsection (g) shall be effective 1 
     year after transmission to the Congress of the study under 
     section 230.

           PART C--OCCUPATIONAL SAFETY AND HEALTH ACT OF 1970

     SEC. 215. RIGHTS AND PROTECTIONS UNDER THE OCCUPATIONAL 
                   SAFETY AND HEALTH ACT OF 1970; PROCEDURES FOR 
                   REMEDY OF VIOLATIONS.

       (a) Occupational Safety and Health Protections.--
       (1) In general.--Each employing office and each covered 
     employee shall comply with the provisions of section 5 of the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 654).
       (2) Definitions.--For purposes of the application under 
     this section of the Occupational Safety and Health Act of 
     1970--
       (A) the term ``employer'' as used in such Act means an 
     employing office;
       (B) the term ``employee'' as used in such Act means a 
     covered employee;
       (C) the term ``employing office'' includes the General 
     Accounting Office and the Library of Congress; and
       (D) the term ``employee'' includes employees of the General 
     Accounting Office and the Library of Congress.
       (b) Remedy.--The remedy for a violation of subsection (a) 
     shall be an order to correct the violation, including such 
     order as would be appropriate if issued under section 13(a) 
     of the Occupational Safety and Health Act of 1970 (29 U.S.C. 
     662(a)).
       (c) Procedures.--
       (1) Requests for inspections.--Upon written request of any 
     employing office or covered employee, the General Counsel 
     shall exercise the authorities granted to the Secretary of 
     Labor by subsections (a) and (f) of section 8 of the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 657(a) 
     and (f)) to inspect and investigate places of employment 
     under the jurisdiction of employing offices.
       (2) Citations, notices, and notifications.--For purposes of 
     this section, the General Counsel shall exercise the 
     authorities granted to the Secretary of Labor in sections 9 
     and 10 of the Occupational Safety and Health Act of 1970 (29 
     U.S.C. 658 and 659), to issue--
       (A) a citation or notice to any employing office 
     responsible for correcting a violation of subsection (a), as 
     determined appropriate by the General Counsel pursuant to 
     regulations issued by the Board pursuant to section 304; or
       (B) a notification to any employing office that the General 
     Counsel believes has failed to correct a violation for which 
     a citation has been issued within the period permitted for 
     its correction.
       (3) Hearings and review.--If after issuing a citation or 
     notification, the General Counsel determines that a violation 
     has not been corrected, the General Counsel may file a 
     complaint with the Office against the employing office named 
     in the citation or notification. The complaint shall be 
     submitted to a hearing officer for decision pursuant to 
     section 405, subject to review by the Board pursuant to 
     section 406.
       (4) Variance procedures.--An employing office may request 
     from the Board an order granting a variance from a standard 
     made applicable by this section. For the purposes of this 
     section, the Board shall exercise the authorities granted to 
     the Secretary of Labor in section 6(b)(6) of the Occupational 
     Safety and Health Act of 1970 (29 U.S.C. 655(b)(6)) to act on 
     any employing office's request for a variance. The Board 
     shall refer the matter to a hearing officer pursuant to 
     section 405, subject to review by the Board pursuant to 
     section 406.
       (5) Judicial review.--The General Counsel or employing 
     office aggrieved by a final decision of the Board under 
     paragraph (3) or (4), may file a petition for review with the 
     United States Court of Appeals for the Federal Circuit 
     pursuant to section 407.
       (6) Compliance date.--If a citation of a violation under 
     this section is received and new appropriated funds are 
     necessary to abate the violation, abatement shall take place 
     as soon as possible, but no later than the fiscal year 
     following the fiscal year in which the citation is issued.
       (d) Regulations To Implement Section.--
       (1) In general.--The Board shall, pursuant to section 304, 
     issue regulations to implement this section.
       (2) Agency regulations.--The regulations issued under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Secretary of Labor to implement the 
     statutory provisions referred to in subsection (a) except to 
     the extent that the Board may determine, for good cause shown 
     and stated together with the regulation, that a modification 
     of such regulations would be more effective for the 
     implementation of the rights and protections under this 
     section.
       (e) Periodic Inspections; Report to Congress.--
       (1) Periodic inspections.--On a regular basis, and at least 
     once each Congress, the General Counsel shall conduct 
     periodic inspections of all facilities of the House of 
     Representatives, the Senate, the Capitol Guide Service, the 
     Capitol Police, the Congressional Budget Office, the Office 
     of the Architect of the Capitol, the Office of the Attending 
     Physician, the Office of Compliance, and the Office of 
     Technology Assessment to report on compliance with subsection 
     (a).
       (2) Report.--On the basis of each periodic inspection, the 
     General Counsel shall prepare and submit a report--
       (A) to the Speaker of the House of Representatives, the 
     President pro tempore of the Senate, and the Office of the 
     Architect of the Capitol or other employing office 
     responsible, as determined under regulations issued by the 
     Board under section 304 of this Act, for correcting the 
     violation of this section uncovered by such inspection, and
       (B) containing the results of the periodic inspection, 
     identifying the employing office responsible for correcting 
     the violation of this section uncovered by such inspection, 
     describing any steps necessary to correct any violation of 
     this section, and assessing any risks to employee health and 
     safety associated with any violation.
       (3) Action after report.--If a report identifies any 
     violation of this section, the General Counsel shall issue a 
     citation or notice in accordance with subsection (c)(2)(A).
       (4) Detailed personnel.--The Secretary of Labor may, on 
     request of the Executive Director, detail to the Office such 
     personnel as may be necessary to advise and assist the Office 
     in carrying out its duties under this section.
       (f) Initial Period for Study and Corrective Action.--The 
     period from the date of the enactment of this Act until 
     December 31, 1996, shall be available to the Office of the 
     Architect of the Capitol and other employing offices to 
     identify any violations of subsection (a), to determine the 
     costs of compliance, and to take any necessary corrective 
     action to abate any violations. The Office shall assist the 
     Office of the Architect of the Capitol and other employing 
     offices by arranging for inspections and other technical 
     assistance at their request. Prior to July 1, 1996, the 
     General Counsel shall conduct a thorough inspection under 
     subsection (e)(1) and shall submit the report under 
     subsection (e)(2) for the 104th Congress.
       (g) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), 
     subsections (a), (b), (c), and (e)(3) shall be effective on 
     January 1, 1997.
       (2) General accounting office and library of congress.--
     This section shall be effective with respect to the General 
     Accounting Office and the Library of Congress 1 year after 
     transmission to the Congress of the study under section 230.

                   PART D--LABOR-MANAGEMENT RELATIONS

     SEC. 220. APPLICATION OF CHAPTER 71 OF TITLE 5, UNITED STATES 
                   CODE, RELATING TO FEDERAL SERVICE LABOR-
                   MANAGEMENT RELATIONS; PROCEDURES FOR REMEDY OF 
                   VIOLATIONS.

       (a) Labor-Management Rights.--
       (1) In general.--Subject to subsection (d), the rights, 
     protections, and responsibilities established under sections 
     7102, 7106, 7111 through 7117, 7119 through 7122, and 7131 of 
     title 5, United States Code, shall apply to employing offices 
     and to covered employees and representatives of those 
     employees.
       (2) Definition.--For purposes of the application under this 
     section of the sections referred to in paragraph (1), the 
     term ``agency'' shall be deemed to include an employing 
     office.
       (b) Remedy.--The remedy for a violation of subsection (a) 
     shall be such remedy, including a remedy under section 
     7118(a)(7) of title 5, United States Code, as would be 
     appropriate if awarded by the Federal Labor Relations 
     Authority to remedy a violation of any provision made 
     applicable by subsection (a).
       (c) Authorities and Procedures for Implementation and 
     Enforcement.--
       (1) General authorities of the board; petitions.--For 
     purposes of this section and except as otherwise provided in 
     this section, the Board shall exercise the authorities of the 
     Federal Labor Relations Authority under sections 7105, 7111, 
     7112, 7113, 7115, 7117, 7118, and 7122 of title 5, United 
     States Code, and of the President under section 7103(b) of 
     title 5, United States Code. For purposes of this section, 
     any petition or other submission that, under chapter 71 of 
     title 5, United States Code, would be submitted to the 
     Federal Labor Relations Authority shall, if brought under 
     this section, be submitted to the Board. The Board shall 
     refer any matter under this paragraph to a hearing officer 
     for decision pursuant to section 405, subject to review by 
     the Board pursuant to section 406. The Board may direct that 
     the General Counsel carry out the Board's investigative 
     authorities under this paragraph.
       (2) General authorities of the general counsel; charges of 
     unfair labor practice.--For purposes of this section and 
     except as otherwise provided in this section, the General 
     Counsel shall exercise the authorities of the General Counsel 
     of the Federal Labor Relations Authority under sections 7104 
     and 7118 of title 5, United States Code. For purposes of this 
     section, any 
      [[Page S69]] charge or other submission that, under chapter 
     71 of title 5, United States Code, would be submitted to the 
     General Counsel of the Federal Labor Relations Authority 
     shall, if brought under this section, be submitted to the 
     General Counsel. If any person charges an employing office or 
     a labor organization with having engaged in or engaging in an 
     unfair labor practice and makes such charge within 180 days 
     of the occurrence of the alleged unfair labor practice, the 
     General Counsel shall investigate the charge and may file a 
     complaint with the Office. The complaint shall be submitted 
     to a hearing officer for decision pursuant to section 405, 
     subject to review by the Board pursuant to section 406.
       (3) Judicial review.--Except for matters referred to in 
     paragraphs (1) and (2) of section 7123(a) of title 5, United 
     States Code, the General Counsel or the respondent to the 
     complaint, if aggrieved by a final decision of the Board 
     under paragraphs (1) and (2) of this subsection may file a 
     petition for judicial review in the United States Court of 
     Appeals for the Federal Circuit pursuant to section 407.
       (4) Exercise of impasses panel authority; requests.--For 
     purposes of this section and except as otherwise provided in 
     this section, the Board shall exercise the authorities of the 
     Federal Service Impasses Panel under section 7119 of title 5, 
     United States Code. For purposes of this section, any request 
     that, under chapter 71 of title 5, United States Code, would 
     be presented to the Federal Service Impasses Panel shall, if 
     made under this section, be presented to the Board. At the 
     request of the Board, the Executive Director shall appoint a 
     mediator or mediators to perform the functions of the Federal 
     Service Impasses Panel under section 7119 of title 5, United 
     States Code.
       (c) Regulations To Implement Section.--
       (1) In general.--The Board shall, pursuant to section 304, 
     issue regulations to implement this section.
       (2) Agency regulations.--Except as provided in subsection 
     (d), the regulations issued under paragraph (1) shall be the 
     same as substantive regulations promulgated by the Federal 
     Labor Relations Authority to implement the statutory 
     provisions referred to in subsection (a) except--
       (A) to the extent that the Board may determine, for good 
     cause shown and stated together with the regulation, that a 
     modification of such regulations would be more effective for 
     the implementation of the rights and protections under this 
     section; or
       (B) as the Board deems necessary to avoid a conflict of 
     interest or appearance of a conflict of interest.
       (d) Specific Regulations Regarding Application to Certain 
     Offices of Congress.--
       (1) Regulations required.--The Board shall issue 
     regulations pursuant to section 304 on the manner and extent 
     to which the requirements and exemptions of chapter 71 of 
     title 5, United States Code, should apply to covered 
     employees who are employed in the offices listed in paragraph 
     (2). The regulations shall, to the greatest extent 
     practicable, be consistent with the provisions and purposes 
     of chapter 71 of title 5, United States Code and of this Act, 
     and shall be the same as substantive regulations issued by 
     the Federal Labor Relations Authority under such chapter, 
     except--
       (A) to the extent that the Board may determine, for good 
     cause shown and stated together with the regulation, that a 
     modification of such regulations would be more effective for 
     the implementation of the rights and protections under this 
     section; and
       (B) that the Board shall exclude from coverage under this 
     section any covered employees who are employed in offices 
     listed in paragraph (2) if the Board determines that such 
     exclusion is required because of--
       (i) a conflict of interest or appearance of a conflict of 
     interest; or
       (ii) Congress's constitutional responsibilities.
       (2) Offices referred to.--The offices referred to in 
     paragraph (1) include--
       (A) the personal office of any Member of the House of 
     Representatives or of any Senator;
       (B) a standing, select, special, permanent, temporary, or 
     other committee of the Senate or House of Representatives, or 
     a joint committee of Congress;
       (C) the Office of the Vice President (as President of the 
     Senate), the Office of the President pro tempore of the 
     Senate, the Office of the Majority Leader of the Senate, the 
     Office of the Minority Leader of the Senate, the Office of 
     the Majority Whip of the Senate, the Office of the Minority 
     Whip of the Senate, the Conference of the Majority of the 
     Senate, the Conference of the Minority of the Senate, the 
     Office of the Secretary of the Conference of the Majority of 
     the Senate, the Office of the Secretary of the Conference of 
     the Minority of the Senate, the Office of the Secretary for 
     the Majority of the Senate, the Office of the Secretary for 
     the Minority of the Senate, the Majority Policy Committee of 
     the Senate, the Minority Policy Committee of the Senate, and 
     the following offices within the Office of the Secretary of 
     the Senate: Offices of the Parliamentarian, Bill Clerk, 
     Legislative Clerk, Journal Clerk, Executive Clerk, Enrolling 
     Clerk, Official Reporters of Debate, Daily Digest, Printing 
     Services, Captioning Services, and Senate Chief Counsel for 
     Employment;
       (D) the Office of the Speaker of the House of 
     Representatives, the Office of the Majority Leader of the 
     House of Representatives, the Office of the Minority Leader 
     of the House of Representatives, the Offices of the Chief 
     Deputy Majority Whips, the Offices of the Chief Deputy 
     Minority Whips and the following offices within the Office of 
     the Clerk of the House of Representatives: Offices of 
     Legislative Operations, Official Reporters of Debate, 
     Official Reporters to Committees, Printing Services, and 
     Legislative Information;
       (E) the Office of the Legislative Counsel of the Senate, 
     the Office of the Senate Legal Counsel, the Office of the 
     Legislative Counsel of the House of Representatives, the 
     Office of the General Counsel of the House of 
     Representatives, the Office of the Parliamentarian of the 
     House of Representatives, and the Office of the Law Revision 
     Counsel;
       (F) the offices of any caucus or party organization;
       (G) the Congressional Budget Office, the Office of 
     Technology Assessment, and the Office of Compliance; and
       (H) such other offices that perform comparable functions 
     which are identified under regulations of the Board.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), 
     subsections (a) and (b) shall be effective on October 1, 
     1996.
       (2) Certain offices.--With respect to the offices listed in 
     subsection (d)(2), to the covered employees of such offices, 
     and to representatives of such employees, subsections (a) and 
     (b) shall be effective on the effective date of regulations 
     under subsection (d).

                            PART E--GENERAL

     SEC. 225. GENERALLY APPLICABLE REMEDIES AND LIMITATIONS.

       (a) Attorney's Fees.--If a covered employee, with respect 
     to any claim under this Act, or a qualified person with a 
     disability, with respect to any claim under section 210, is a 
     prevailing party in any proceeding under section 405, 406, 
     407, or 408, the hearing officer, Board, or court, as the 
     case may be, may award attorney's fees, expert witness fees, 
     and any other costs as would be appropriate if awarded under 
     section 706(k) of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e-5(k)).
       (b) Interest.--In any proceeding under section 405, 406, 
     407, or 408, the same interest to compensate for delay in 
     payment shall be made available as would be appropriate if 
     awarded under section 717(d) of the Civil Rights Act of 1964 
     (42 U.S.C. 2000e-16(d)).
       (c) Civil Penalties and Punitive Damages.--No civil penalty 
     or punitive damages may be awarded with respect to any claim 
     under this Act.
       (d) Exclusive Procedure.--
       (1) In general.--Except as provided in paragraph (2), no 
     person may commence an administrative or judicial proceeding 
     to seek a remedy for the rights and protections afforded by 
     this Act except as provided in this Act.
       (2) Veterans.--A covered employee under section 206 may 
     also utilize any provisions of chapter 43 of title 38, United 
     States Code, that are applicable to that employee.
       (e) Scope of Remedy.--Only a covered employee who has 
     undertaken and completed the procedures described in sections 
     402 and 403 may be granted a remedy under part A of this 
     title.
       (f) Construction.--
       (1) Definitions and exemptions.--Except where inconsistent 
     with definitions and exemptions provided in this Act, the 
     definitions and exemptions in the laws made applicable by 
     this Act shall apply under this Act.
       (2) Size limitations.--Notwithstanding paragraph (1), 
     provisions in the laws made applicable under this Act (other 
     than the Worker Adjustment and Retraining Notification Act) 
     determining coverage based on size, whether expressed in 
     terms of numbers of employees, amount of business transacted, 
     or other measure, shall not apply in determining coverage 
     under this Act.
       (3) Executive branch enforcement.--This Act shall not be 
     construed to authorize enforcement by the executive branch of 
     this Act.

                             PART F--STUDY

     SEC. 230. STUDY AND RECOMMENDATIONS REGARDING GENERAL 
                   ACCOUNTING OFFICE, GOVERNMENT PRINTING OFFICE, 
                   AND LIBRARY OF CONGRESS.

       (a) In General.--The Administrative Conference of the 
     United States shall undertake a study of--
       (1) the application of the laws listed in subsection (b) 
     to--
       (A) the General Accounting Office;
       (B) the Government Printing Office; and
       (C) the Library of Congress; and
       (2) the regulations and procedures used by the entities 
     referred to in paragraph (1) to apply and enforce such laws 
     to themselves and their employees.
       (b) Applicable Statutes.--The study under this section 
     shall consider the application of the following laws:
       (1) Title VII of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e et seq.), and related provisions of section 2302 of 
     title 5, United States Code.
       (2) The Age Discrimination in Employment Act of 1967 (29 
     U.S.C. 621 et seq.), and related provisions of section 2302 
     of title 5, United States Code.
       (3) The Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.), and related provisions of section 2302 of 
     title 5, United States Code.
     [[Page S70]]   (4) The Family and Medical Leave Act of 1993 
     (29 U.S.C. 2611 et seq.), and related provisions of sections 
     6381 through 6387 of title 5, United States Code.
       (5) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 
     seq.), and related provisions of sections 5541 through 5550a 
     of title 5, United States Code.
       (6) The Occupational Safety and Health Act of 1970 (29 
     U.S.C. 651 et seq.), and related provisions of section 7902 
     of title 5, United States Code.
       (7) The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
       (8) Chapter 71 (relating to Federal service labor-
     management relations) of title 5, United States Code.
       (9) The General Accounting Office Personnel Act of 1980 (31 
     U.S.C. 731 et seq.).
       (10) The Employee Polygraph Protection Act of 1988 (29 
     U.S.C. 2001 et seq.).
       (11) The Worker Adjustment and Retraining Notification Act 
     (29 U.S.C. 2101 et seq.).
       (12) Chapter 43 (relating to veterans' employment and 
     reemployment) of title 38, United States Code.
       (c) Contents of Study and Recommendations.--The study under 
     this section shall evaluate whether the rights, protections, 
     and procedures, including administrative and judicial relief, 
     applicable to the entities listed in paragraph (1) of 
     subsection (a) and their employees are comprehensive and 
     effective and shall include recommendations for any 
     improvements in regulations or legislation, including 
     proposed regulatory or legislative language.
       (d) Deadline and Delivery of Study.--Not later than 2 years 
     after the date of the enactment of this Act--
       (1) the Administrative Conference of the United States 
     shall prepare and complete the study and recommendations 
     required under this section and shall submit the study and 
     recommendations to the Board; and
       (2) the Board shall transmit such study and recommendations 
     (with the Board's comments) to the head of each entity 
     considered in the study, and to the Congress by delivery to 
     the Speaker of the House of Representatives and President pro 
     tempore of the Senate for referral to the appropriate 
     committees of the House of Representatives and of the Senate.
                    TITLE III--OFFICE OF COMPLIANCE

     SEC. 301. ESTABLISHMENT OF OFFICE OF COMPLIANCE.

       (a) Establishment.--There is established, as an independent 
     office within the legislative branch of the Federal 
     Government, the Office of Compliance.
       (b) Board of directors.--The Office shall have a Board of 
     Directors. The Board shall consist of 5 individuals appointed 
     jointly by the Speaker of the House of Representatives, the 
     Majority Leader of the Senate, and the Minority Leaders of 
     the House of Representatives and the Senate. Appointments of 
     the first 5 members of the Board shall be completed not later 
     than 90 days after the date of the enactment of this Act.
       (c) Chair.--The Chair shall be appointed from members of 
     the Board jointly by the Speaker of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leaders of the House of Representatives and the 
     Senate.
       (d) Board of Directors Qualifications.--
       (1) Specific qualifications.--Selection and appointment of 
     members of the Board shall be without regard to political 
     affiliation and solely on the basis of fitness to perform the 
     duties of the Office. Members of the Board shall have 
     training or experience in the application of the rights, 
     protections, and remedies under one or more of the laws made 
     applicable under section 102.
       (2) Disqualifications for appointments.--
       (A) Lobbying.--No individual who engages in, or is 
     otherwise employed in, lobbying of the Congress and who is 
     required under the Federal Regulation of Lobbying Act to 
     register with the Clerk of the House of Representatives or 
     the Secretary of the Senate shall be eligible for appointment 
     to, or service on, the Board.
       (B) Incompatible office.--No member of the Board appointed 
     under subsection (b) may hold or may have held the position 
     of Member of the House of Representatives or Senator, may 
     hold the position of officer or employee of the House of 
     Representatives, Senate, or instrumentality or other entity 
     of the legislative branch, or may have held such a position 
     (other than the position of an officer or employee of the 
     General Accounting Office Personnel Appeals Board, an officer 
     or employee of the Office of Fair Employment Practices of the 
     House of Representatives, or officer or employee of the 
     Office of Fair Employment Practices of the Senate) within 4 
     years of the date of appointment.
       (3) Vacancies.--A vacancy on the Board shall be filled in 
     the manner in which the original appointment was made.
       (e) Term of Office.--
       (1) In general.--Except as provided in paragraph (2), 
     membership on the Board shall be for 5 years. A member of the 
     Board who is appointed to a term of office of more than 3 
     years shall only be eligible for appointment for a single 
     term of office.
       (2) First appointments.--Of the members first appointed to 
     the Board--
       (A) 1 shall have a term of office of 3 years,
       (B) 2 shall have a term of office of 4 years, and
       (C) 2 shall have a term of office of 5 years, 1 of whom 
     shall be the Chair,
     as designated at the time of appointment by the persons 
     specified in subsection (b).
       (f) Removal.--
       (1) Authority.--Any member of the Board may be removed from 
     office by a majority decision of the appointing authorities 
     described in subsection (b), but only for--
       (A) disability that substantially prevents the member from 
     carrying out the duties of the member,
       (B) incompetence,
       (C) neglect of duty,
       (D) malfeasance, including a felony or conduct involving 
     moral turpitude, or
       (E) holding an office or employment or engaging in an 
     activity that disqualifies the individual from service as a 
     member of the Board under subsection (d)(2).
       (2) Statement of reasons for removal.--In removing a member 
     of the Board, the Speaker of the House of Representatives and 
     the President pro tempore of the Senate shall state in 
     writing to the member of the Board being removed the specific 
     reasons for the removal.
       (g) Compensation.--
       (1) Per diem.--Each member of the Board shall be 
     compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code, for each day (including travel time) during 
     which such member is engaged in the performance of the duties 
     of the Board. The rate of pay of a member may be prorated 
     based on the portion of the day during which the member is 
     engaged in the performance of Board duties.
       (2)  Travel expenses.--Each member of the Board shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, for each day the member is engaged in the performance 
     of duties away from the home or regular place of business of 
     the member.
       (h) Duties.--The Office shall--
       (1) carry out a program of education for Members of 
     Congress and other employing authorities of the legislative 
     branch of the Federal Government respecting the laws made 
     applicable to them and a program to inform individuals of 
     their rights under laws applicable to the legislative branch 
     of the Federal Government;
       (2) in carrying out the program under paragraph (1), 
     distribute the telephone number and address of the Office, 
     procedures for action under title IV, and any other 
     information appropriate for distribution, distribute such 
     information to employing offices in a manner suitable for 
     posting, provide such information to new employees of 
     employing offices, distribute such information to the 
     residences of covered employees, and conduct seminars and 
     other activities designed to educate employing offices and 
     covered employees; and
       (3) compile and publish statistics on the use of the Office 
     by covered employees, including the number and type of 
     contacts made with the Office, on the reason for such 
     contacts, on the number of covered employees who initiated 
     proceedings with the Office under this Act and the result of 
     such proceedings, and on the number of covered employees who 
     filed a complaint, the basis for the complaint, and the 
     action taken on the complaint.
       (i) Congressional Oversight.--The Board and the Office 
     shall be subject to oversight (except with respect to the 
     disposition of individual cases) by the Committee on Rules 
     and Administration and the Committee on Governmental Affairs 
     of the Senate and the Committee on House Oversight of the 
     House of Representatives.
       (j) Opening of Office.--The Office shall be open for 
     business, including receipt of requests for counseling under 
     section 402, not later than 1 year after the date of the 
     enactment of this Act.
       (k) Financial Disclosure Reports.--Members of the Board and 
     officers and employees of the Office shall file the financial 
     disclosure reports required under title I of the Ethics in 
     Government Act of 1978 with the Clerk of the House of 
     Representatives.

     SEC. 302. OFFICERS, STAFF, AND OTHER PERSONNEL.

       (a) Executive Director.--
       (1) Appointment and removal.--
       (A) In general.--The Chair, subject to the approval of the 
     Board, shall appoint and may remove an Executive Director. 
     Selection and appointment of the Executive Director shall be 
     without regard to political affiliation and solely on the 
     basis of fitness to perform the duties of the Office. The 
     first Executive Director shall be appointed no later than 90 
     days after the initial appointment of the Board of Directors.
       (B) Qualifications.-- The Executive Director shall be an 
     individual with training or expertise in the application of 
     laws referred to in section 102(a).
       (C) Disqualifications.--The disqualifications in section 
     301(d)(2) shall apply to the appointment of the Executive 
     Director.
       (2) Compensation.--The Chair may fix the compensation of 
     the Executive Director. The rate of pay for the Executive 
     Director may not exceed the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (3) Term.--The term of office of the Executive Director 
     shall be a single term of 5 years, except that the first 
     Executive Director shall have a single term of 7 years.
     [[Page S71]]   (4) Duties.--The Executive Director shall 
     serve as the chief operating officer of the Office. Except as 
     otherwise specified in this Act, the Executive Director shall 
     carry out all of the responsibilities of the Office under 
     this Act.
       (b) Deputy Executive Directors.--
       (1) In general.--The Chair, subject to the approval of the 
     Board, shall appoint and may remove a Deputy Executive 
     Director for the Senate and a Deputy Executive Director for 
     the House of Representatives. Selection and appointment of a 
     Deputy Executive Director shall be without regard to 
     political affiliation and solely on the basis of fitness to 
     perform the duties of the office. The disqualifications in 
     section 301(d)(2) shall apply to the appointment of a Deputy 
     Executive Director.
       (2) Term.--The term of office of a Deputy Executive 
     Director shall be a single term of 5 years, except that the 
     first Deputy Executive Directors shall have a single term of 
     6 years.
       (3) Compensation.--The Chair may fix the compensation of 
     the Deputy Executive Directors. The rate of pay for a Deputy 
     Executive Director may not exceed 96 percent of the annual 
     rate of basic pay prescribed for level V of the Executive 
     Schedule under section 5316 of title 5, United States Code.
       (4) Duties.--The Deputy Executive Director for the Senate 
     shall recommend to the Board regulations under section 
     304(a)(2)(B)(i), maintain the regulations and all records 
     pertaining to the regulations, and shall assume such other 
     responsibilities as may be delegated by the Executive 
     Director. The Deputy Executive Director for the House of 
     Representatives shall recommend to the Board the regulations 
     under section 304(a)(2)(B)(ii), maintain the regulations and 
     all records pertaining to the regulations, and shall assume 
     such other responsibilities as may be delegated by the 
     Executive Director.
       (c) General Counsel.--
       (1) In general.--The Chair, subject to the approval of the 
     Board, shall appoint a General Counsel. Selection and 
     appointment of the General Counsel shall be without regard to 
     political affiliation and solely on the basis of fitness to 
     perform the duties of the Office. The disqualifications in 
     section 301(d)(2) shall apply to the appointment of a General 
     Counsel.
       (2) Compensation.--The Chair may fix the compensation of 
     the General Counsel. The rate of pay for the General Counsel 
     may not exceed the annual rate of basic pay prescribed for 
     level V of the Executive Schedule under section 5316 of title 
     5, United States Code.
       (3) Duties.--The General Counsel shall--
       (A) exercise the authorities and perform the duties of the 
     General Counsel as specified in this Act; and
       (B) otherwise assist the Board and the Executive Director 
     in carrying out their duties and powers, including 
     representing the Office in any judicial proceeding under this 
     Act.
       (4) Attorneys in the office of the general counsel.--The 
     General Counsel shall appoint, and fix the compensation of, 
     and may remove, such additional attorneys as may be necessary 
     to enable the General Counsel to perform the General 
     Counsel's duties.
       (5) Term.--The term of office of the General Counsel shall 
     be a single term of 5 years.
       (6) Removal.--
       (A) Authority.--The General Counsel may be removed from 
     office by the Chair but only for--
       (i) disability that substantially prevents the General 
     Counsel from carrying out the duties of the General Counsel,
       (ii) incompetence,
       (iii) neglect of duty,
       (iv) malfeasance, including a felony or conduct involving 
     moral turpitude, or
       (v) holding an office or employment or engaging in an 
     activity that disqualifies the individual from service as the 
     General Counsel under paragraph (1).
       (B) Statement of reasons for removal.--In removing the 
     General Counsel, the Speaker of the House of Representatives 
     and the President pro tempore of the Senate shall state in 
     writing to the General Counsel the specific reasons for the 
     removal.
       (d) Other Staff.--The Executive Director shall appoint, and 
     fix the compensation of, and may remove, such other 
     additional staff, including hearing officers, but not 
     including attorneys employed in the office of the General 
     Counsel, as may be necessary to enable the Office to perform 
     its duties.
       (e) Detailed Personnel.--The Executive Director may, with 
     the prior consent of the department or agency of the Federal 
     Government concerned, use on a reimbursable or 
     nonreimbursable basis the services of personnel of any such 
     department or agency, including the services of members or 
     personnel of the General Accounting Office Personnel Appeals 
     Board.
       (f) Consultants.--In carrying out the functions of the 
     Office, the Executive Director may procure the temporary (not 
     to exceed 1 year) or intermittent services of consultants.

     SEC. 303. PROCEDURAL RULES.

       (a) In General.--The Executive Director shall, subject to 
     the approval of the Board, adopt rules governing the 
     procedures of the Office, including the procedures of hearing 
     officers, which shall be submitted for publication in the 
     Congressional Record. The rules may be amended in the same 
     manner.
       (b) Procedure.--The Executive Director shall adopt rules 
     referred to in subsection (a) in accordance with the 
     principles and procedures set forth in section 553 of title 
     5, United States Code. The Executive Director shall publish a 
     general notice of proposed rulemaking under section 553(b) of 
     title 5, United States Code, but, instead of publication of a 
     general notice of proposed rulemaking in the Federal 
     Register, the Executive Director shall transmit such notice 
     to the Speaker of the House of Representatives and the 
     President pro tempore of the Senate for publication in the 
     Congressional Record on the first day on which both Houses 
     are in session following such transmittal. Before issuing 
     rules, the Executive Director shall provide a comment period 
     of at least 30 days after publication of a general notice of 
     proposed rulemaking. Upon adopting rules, the Executive 
     Director shall transmit notice of such action together with a 
     copy of such rules to the Speaker of the House of 
     Representatives and the President pro tempore of the Senate 
     for publication in the Congressional Record on the first day 
     on which both Houses are in session following such 
     transmittal. Rules shall be considered issued by the 
     Executive Director as of the date on which they are published 
     in the Congressional Record.

     SEC. 304. SUBSTANTIVE REGULATIONS.

       (a) Regulations.--
       (1) In general.--The procedures applicable to the 
     regulations of the Board issued for the implementation of 
     this Act, which shall include regulations the Board is 
     required to issue under title II (including regulations on 
     the appropriate application of exemptions under the laws made 
     applicable in title II) are as prescribed in this section.
       (2) Rulemaking procedure.--Such regulations of the Board--
       (A) shall be adopted, approved, and issued in accordance 
     with subsection (b);
       (B) shall consist of 3 separate bodies of regulations, 
     which shall apply, respectively, to--
       (i) the Senate and employees of the Senate;
       (ii) the House of Representatives and employees of the 
     House of Representatives; and
       (iii) all other covered employees and employing offices.
       (b) Adoption by the Board.--The Board shall adopt the 
     regulations referred to in subsection (a)(1) in accordance 
     with the principles and procedures set forth in section 553 
     of title 5, United States Code, and as provided in the 
     following provisions of this subsection:
       (1) Proposal.--The Board shall publish a general notice of 
     proposed rulemaking under section 553(b) of title 5, United 
     States Code, but, instead of publication of a general notice 
     of proposed rulemaking in the Federal Register, the Board 
     shall transmit such notice to the Speaker of the House of 
     Representatives and the President pro tempore of the Senate 
     for publication in the Congressional Record on the first day 
     on which both Houses are in session following such 
     transmittal. Such notice shall set forth the recommendations 
     of the Deputy Director for the Senate in regard to 
     regulations under subsection (a)(2)(B)(i), the 
     recommendations of the Deputy Director for the House of 
     Representatives in regard to regulations under subsection 
     (a)(2)(B)(ii), and the recommendations of the Executive 
     Director for regulations under subsection (a)(2)(B)(iii).
       (2) Comment.--Before adopting regulations, the Board shall 
     provide a comment period of at least 30 days after 
     publication of a general notice of proposed rulemaking.
       (3) Adoption.--After considering comments, the Board shall 
     adopt regulations and shall transmit notice of such action 
     together with a copy of such regulations to the Speaker of 
     the House of Representatives and the President pro tempore of 
     the Senate for publication in the Congressional Record on the 
     first day on which both Houses are in session following such 
     transmittal.
       (4) Recommendation as to method of approval.--The Board 
     shall include a recommendation in the general notice of 
     proposed rulemaking and in the regulations as to whether the 
     regulations should be approved by resolution of the Senate, 
     by resolution of the House of Representatives, by concurrent 
     resolution, or by joint resolution.
       (c) Approval of Regulations.--
       (1) In general.--Regulations referred to in paragraph 
     (2)(B)(i) of subsection (a) may be approved by the Senate by 
     resolution or by the Congress by concurrent resolution or by 
     joint resolution. Regulations referred to in paragraph 
     (2)(B)(ii) of subsection (a) may be approved by the House of 
     Representatives by resolution or by the Congress by 
     concurrent resolution or by joint resolution. Regulations 
     referred to in paragraph (2)(B)(iii) may be approved by 
     Congress by concurrent resolution or by joint resolution.
       (2) Referral.--Upon receipt of a notice of adoption of 
     regulations under subsection (b)(3), the presiding officers 
     of the House of Representatives and the Senate shall refer 
     such notice, together with a copy of such regulations, to the 
     appropriate committee or committees of the House of 
     Representatives and of the Senate. The purpose of the 
     referral shall be to consider whether such regulations should 
     be approved, and, if so, whether such approval should be by 
     resolution of the House of Representatives or of the Senate, 
     by concurrent resolution or by joint resolution.
       (3) Joint Referral and Discharge in the Senate.--The 
     presiding officer of the Senate may refer the notice of 
     issuance of regulations, or any resolution of approval of 
     regulations, to one committee or jointly to more than one 
     committee. If a committee of the Senate acts to report a 
     jointly referred measure, any other committee of the Senate 
      [[Page S72]] must act within 30 calendar days of continuous 
     session, or be automatically discharged.
       (4) One-house resolution or concurrent resolution.--In the 
     case of a resolution of the House of Representatives or the 
     Senate or a concurrent resolution referred to in paragraph 
     (1), the matter after the resolving clause shall be the 
     following: ``The following regulations issued by the Office 
     of Compliance on ____ are hereby approved:'' (the blank space 
     being appropriately filled in, and the text of the 
     regulations being set forth).
       (5) Joint resolution.--In the case of a joint resolution 
     referred to in paragraph (1), the matter after the resolving 
     clause shall be the following: ``The following regulations 
     issued by the Office of Compliance on ____ are hereby 
     approved and shall have the force and effect of law:'' (the 
     blank space being appropriately filled in, and the text of 
     the regulations being set forth).
       (d) Issuance and Effective Date.--
       (1) Publication.--After approval of regulations under 
     subsection (c), the Board shall submit the regulations to the 
     Speaker of the House of Representatives and the President pro 
     tempore of the Senate for publication in the Congressional 
     Record on the first day on which both Houses are in session 
     following such transmittal.
       (2) Date of issuance.--The date of issuance of regulations 
     shall be the date on which they are published in the 
     Congressional Record.
       (3) Effective date.--Regulations shall become effective not 
     less than 60 days after the regulations are issued, except 
     that the Board may provide for an earlier effective date for 
     good cause found (within the meaning of section 553(d)(3) of 
     title 5, United States Code) and published with the 
     regulation.
       (e) Amendment of Regulations.--Regulations may be amended 
     in the same manner as is described in this section for the 
     adoption, approval, and issuance of regulations, except that 
     the Board may, in its discretion, dispense with publication 
     of a general notice of proposed rulemaking of minor, 
     technical, or urgent amendments that satisfy the criteria for 
     dispensing with publication of such notice pursuant to 
     section 553(b)(B) of title 5, United States Code.
       (f) Right To Petition for Rulemaking.--Any interested party 
     may petition to the Board for the issuance, amendment, or 
     repeal of a regulation.
       (g) Consultation.--The Executive Director, the Deputy 
     Directors, and the Board--
       (1) shall consult, with regard to the development of 
     regulations, with--
       (A) the Chair of the Administrative Conference of the 
     United States;
       (B) the Secretary of Labor;
       (C) the Federal Labor Relations Authority; and
       (D) the Director of the Office of Personnel Management; and
       (2) may consult with any other persons with whom 
     consultation, in the opinion of the Board, the Executive 
     Director, or Deputy Directors, may be helpful.

     SEC. 305. EXPENSES.

       (a) Authorization of Appropriations.--Beginning in fiscal 
     year 1995, and for each fiscal year thereafter, there are 
     authorized to be appropriated for the expenses of the Office 
     such sums as may be necessary to carry out the functions of 
     the Office. Until sums are first appropriated pursuant to the 
     preceding sentence, but for a period not exceeding 12 months 
     following the date of the enactment of this Act--
       (1) one-half of the expenses of the Office shall be paid 
     from funds appropriated for allowances and expenses of the 
     House of Representatives, and
       (2) one-half of the expenses of the Office shall be paid 
     from funds appropriated for allowances and expenses of the 
     Senate,

     upon vouchers approved by the Executive Director.
       (b) Witness Fees and Allowances.--Except for covered 
     employees, witnesses before a hearing officer or the Board in 
     any proceeding under this Act other than rulemaking shall be 
     paid the same fee and mileage allowances as are paid 
     subpoenaed witnesses in the courts of the United States. 
     Covered employees who are summoned, or are assigned by their 
     employer, to testify in their official capacity or to produce 
     official records in any proceeding under this Act shall be 
     entitled to travel expenses under subchapter I and section 
     5751 of chapter 57 of title 5, United States Code.
  TITLE IV--ADMINISTRATIVE AND JUDICIAL DISPUTE-RESOLUTION PROCEDURES

     SEC. 401. PROCEDURE FOR CONSIDERATION OF ALLEGED VIOLATIONS.

       Except as otherwise provided, the procedure for 
     consideration of alleged violations of part A of title II 
     consists of--
       (1) counseling as provided in section 402;
       (2) mediation as provided in section 403; and
       (3) election, as provided in section 404, of either--
       (A) a formal complaint and hearing as provided in section 
     405, subject to Board review as provided in section 406, and 
     judicial review in the United States Court of Appeals for the 
     Federal Circuit as provided in section 407, or
       (B) a civil action in a district court of the United States 
     as provided in section 408.

     In the case of an employee of the Office of the Architect of 
     the Capitol or of the Capitol Police, the Executive Director, 
     after receiving a request for counseling under section 402, 
     may recommend that the employee use the grievance procedures 
     of the Architect of the Capitol or the Capitol Police for 
     resolution of the employee's grievance for a specific period 
     of time, which shall not count against the time available for 
     counseling or mediation.

     SEC. 402. COUNSELING.

       (a) In General.--To commence a proceeding, a covered 
     employee alleging a violation of a law made applicable under 
     part A of title II shall request counseling by the Office. 
     The Office shall provide the employee with all relevant 
     information with respect to the rights of the employee. A 
     request for counseling shall be made not later than 180 days 
     after the date of the alleged violation.
       (b) Period of Counseling.--The period for counseling shall 
     be 30 days unless the employee and the Office agree to reduce 
     the period. The period shall begin on the date the request 
     for counseling is received.
       (c) Notification of End of Counseling Period.--The Office 
     shall notify the employee in writing when the counseling 
     period has ended.

     SEC. 403. MEDIATION.

       (a) Initiation.--Not later than 15 days after the end of 
     the counseling period under section 402, but prior to and as 
     a condition of making an election under section 404, the 
     covered employee who alleged a violation of a law shall file 
     a request for mediation with the Office.
       (b) Process.--Mediation under this section--
       (1) may include the Office, the covered employee, the 
     employing office, and one or more individuals appointed by 
     the Executive Director after considering recommendations by 
     organizations composed primarily of individuals experienced 
     in adjudicating or arbitrating personnel matters, and
       (2) shall involve meetings with the parties separately or 
     jointly for the purpose of resolving the dispute between the 
     covered employee and the employing office.
       (c) Mediation Period.--The mediation period shall be 30 
     days beginning on the date the request for mediation is 
     received. The mediation period may be extended for additional 
     periods at the joint request of the covered employee and the 
     employing office. The Office shall notify in writing the 
     covered employee and the employing office when the mediation 
     period has ended.
       (d) Independence of Mediation Process.--No individual, who 
     is appointed by the Executive Director to mediate, may 
     conduct or aid in a hearing conducted under section 405 with 
     respect to the same matter or shall be subject to subpoena or 
     any other compulsory process with respect to the same matter.

     SEC. 404. ELECTION OF PROCEEDING.

       Not later than 90 days after a covered employee receives 
     notice of the end of the period of mediation, but no sooner 
     than 30 days after receipt of such notification, such covered 
     employee may either--
       (1) file a complaint with the Office in accordance with 
     section 405, or
       (2) file a civil action in accordance with section 408 in 
     the United States district court for the district in which 
     the employee is employed or for the District of Columbia.

     SEC. 405. COMPLAINT AND HEARING.

       (a) In General.--A covered employee may, upon the 
     completion of mediation under section 403, file a complaint 
     with the Office. The respondent to the complaint shall be the 
     employing office--
       (1) involved in the violation, or
       (2) in which the violation is alleged to have occurred,

     and about which mediation was conducted.
       (b) Dismissal.--A hearing officer may dismiss any claim 
     that the hearing officer finds to be frivolous or that fails 
     to state a claim upon which relief may be granted.
       (c) Hearing Officer.--
       (1) Appointment.--Upon the filing of a complaint, the 
     Executive Director shall appoint an independent hearing 
     officer to consider the complaint and render a decision. No 
     Member of the House of Representatives, Senator, officer of 
     either the House of Representatives or the Senate, head of an 
     employing office, member of the Board, or covered employee 
     may be appointed to be a hearing officer. The Executive 
     Director shall select hearing officers on a rotational or 
     random basis from the lists developed under paragraph (2). 
     Nothing in this section shall prevent the appointment of 
     hearing officers as full-time employees of the Office or the 
     selection of hearing officers on the basis of specialized 
     expertise needed for particular matters.
       (2) Lists.--The Executive Director shall develop master 
     lists, composed of--
       (A) members of the bar of a State or the District of 
     Columbia and retired judges of the United States courts who 
     are experienced in adjudicating or arbitrating the kinds of 
     personnel and other matters for which hearings may be held 
     under this Act, and
       (B) individuals expert in technical matters relating to 
     accessibility and usability by persons with disabilities or 
     technical matters relating to occupational safety and health.

     In developing lists, the Executive Director shall consider 
     candidates recommended by the Federal Mediation and 
     Conciliation Service or the Administrative Conference of the 
     United States.
       (d) Hearing.--Unless a complaint is dismissed before a 
     hearing, a hearing shall be--
     [[Page S73]]   (1) conducted in closed session on the record 
     by the hearing officer;
       (2) commenced no later than 60 days after filing of the 
     complaint under subsection (b), except that the Office may, 
     for good cause, extend up to an additional 30 days the time 
     for commencing a hearing; and
       (3) conducted, except as specifically provided in this Act 
     and to the greatest extent practicable, in accordance with 
     the principles and procedures set forth in sections 554 
     through 557 of title 5, United States Code.
       (e) Discovery.--Reasonable prehearing discovery may be 
     permitted at the discretion of the hearing officer.
       (f) Subpoenas.--
       (1) In general.--At the request of a party, a hearing 
     officer may issue subpoenas for the attendance of witnesses 
     and for the production of correspondence, books, papers, 
     documents, and other records. The attendance of witnesses and 
     the production of records may be required from any place 
     within the United States. Subpoenas shall be served in the 
     manner provided under rule 45(b) of the Federal Rules of 
     Civil Procedure.
       (2) Objections.--If a person refuses, on the basis of 
     relevance, privilege, or other objection, to testify in 
     response to a question or to produce records in connection 
     with a proceeding before a hearing officer, the hearing 
     officer shall rule on the objection. At the request of the 
     witness or any party, the hearing officer shall (or on the 
     hearing officer's own initiative, the hearing officer may) 
     refer the ruling to the Board for review.
       (3) Enforcement.--
       (A) In general.--If a person fails to comply with a 
     subpoena, the Board may authorize the General Counsel to 
     apply, in the name of the Office, to an appropriate United 
     States district court for an order requiring that person to 
     appear before the hearing officer to give testimony or 
     produce records. The application may be made within the 
     judicial district where the hearing is conducted or where 
     that person is found, resides, or transacts business. Any 
     failure to obey a lawful order of the district court issued 
     pursuant to this section may be held by such court to be a 
     civil contempt thereof.
       (B) Service of process.--Process in an action or contempt 
     proceeding pursuant to subparagraph (A) may be served in any 
     judicial district in which the person refusing or failing to 
     comply, or threatening to refuse or not to comply, resides, 
     transacts business, or may be found, and subpoenas for 
     witnesses who are required to attend such proceedings may run 
     into any other district.
       (g) Decision.--The hearing officer shall issue a written 
     decision as expeditiously as possible, but in no case more 
     than 90 days after the conclusion of the hearing. The written 
     decision shall be transmitted by the Office to the parties. 
     The decision shall state the issues raised in the complaint, 
     describe the evidence in the record, contain findings of fact 
     and conclusions of law, contain a determination of whether a 
     violation has occurred, and order such remedies as are 
     appropriate pursuant to title II. The decision shall be 
     entered in the records of the Office. If a decision is not 
     appealed under section 406 to the Board, the decision shall 
     be considered the final decision of the Office.
       (h) Precedents.--A hearing officer who conducts a hearing 
     under this section shall be guided by judicial decisions 
     under the laws made applicable by section 102 and by Board 
     decisions under this Act.

     SEC. 406. APPEAL TO THE BOARD.

       (a) In General.--Any party aggrieved by the decision of a 
     hearing officer under section 405(g) may file a petition for 
     review by the Board not later than 30 days after entry of the 
     decision in the records of the Office.
       (b) Parties' Opportunity To Submit Argument.--The parties 
     to the hearing upon which the decision of the hearing officer 
     was made shall have a reasonable opportunity to be heard, 
     through written submission and, in the discretion of the 
     Board, through oral argument.
       (c) Standard of Review.--The Board shall set aside a 
     decision of a hearing officer if the Board determines that 
     the decision was--
       (1) arbitrary, capricious, an abuse of discretion, or 
     otherwise not consistent with law;
       (2) not made consistent with required procedures; or
       (3) unsupported by substantial evidence.
       (d) Record.--In making determinations under subsection (c), 
     the Board shall review the whole record, or those parts of it 
     cited by a party, and due account shall be taken of the rule 
     of prejudicial error.
       (e) Decision.--The Board shall issue a written decision 
     setting forth the reasons for its decision. The decision may 
     affirm, reverse, or remand to the hearing officer for further 
     proceedings. A decision that does not require further 
     proceedings before a hearing officer shall be entered in the 
     records of the Office as a final decision.

     SEC. 407. JUDICIAL REVIEW OF BOARD DECISIONS AND ENFORCEMENT.

       (a) Jurisdiction.--
       (1) Judicial review.--The United States Court of Appeals 
     for the Federal Circuit shall have jurisdiction over any 
     proceeding commenced by a petition of--
       (A) a party aggrieved by a final decision of the Board 
     under section 406(e) in cases arising under part A of title 
     II,
       (B) a charging individual or a respondent before the Board 
     who files a petition under section 210(d)(4),
       (C) the General Counsel or a respondent before the Board 
     who files a petition under section 215(c)(5), or
       (D) the General Counsel or a respondent before the Board 
     who files a petition under section 220(c)(3).

     The court of appeals shall have exclusive jurisdiction to set 
     aside, suspend (in whole or in part), to determine the 
     validity of, or otherwise review the decision of the Board.
       (2) Enforcement.--The United States Court of Appeals for 
     the Federal Circuit shall have jurisdiction over any petition 
     of the General Counsel, filed in the name of the Office and 
     at the direction of the Board, to enforce a final decision 
     under section 405(g) or 406(e) with respect to a violation of 
     part A, B, C, or D of title II.
       (b) Procedures.--
       (1) Respondents.--(A) In any proceeding commenced by a 
     petition filed under subsection (a)(1) (A) or (B), or filed 
     by a party other than the General Counsel under subsection 
     (a)(1) (C) or (D), the Office shall be named respondent and 
     any party before the Board may be named respondent by filing 
     a notice of election with the court within 30 days after 
     service of the petition.
       (B) In any proceeding commenced by a petition filed by the 
     General Counsel under subsection (a)(1) (C) or (D), the 
     prevailing party in the final decision entered under section 
     406(e) shall be named respondent, and any other party before 
     the Board may be named respondent by filing a notice of 
     election with the court within 30 days after service of the 
     petition.
       (C) In any proceeding commenced by a petition filed under 
     subsection (a)(2), the party under section 405 or 406 that 
     the General Counsel determines has failed to comply with a 
     final decision under section 405(g) or 406(e) shall be named 
     respondent.
       (2) Intervention.--Any party that participated in the 
     proceedings before the Board under section 406 and that was 
     not made respondent under paragraph (1) may intervene as of 
     right.
       (c) Law applicable.--Chapter 158 of title 28, United States 
     Code, shall apply to judicial review under paragraph (1) of 
     subsection (a), except that--
       (1) with respect to section 2344 of title 28, United States 
     Code, service of a petition in any proceeding in which the 
     Office is a respondent shall be on the General Counsel rather 
     than on the Attorney General;
       (2) the provisions of section 2348 of title 28, United 
     States Code, on the authority of the Attorney General, shall 
     not apply;
       (3) the petition for review shall be filed not later than 
     90 days after the entry in the Office of a final decision 
     under section 406(e); and
       (4) the Office shall be an ``agency'' as that term is used 
     in chapter 158 of title 28, United States Code.
       (d) Standard of review.--To the extent necessary for 
     decision in a proceeding commenced under subsection (a)(1) 
     and when presented, the court shall decide all relevant 
     questions of law and interpret constitutional and statutory 
     provisions. The court shall set aside a final decision of the 
     Board if it is determined that the decision was--
       (1) arbitrary, capricious, an abuse of discretion, or 
     otherwise not consistent with law;
       (2) not made consistent with required procedures; or
       (3) unsupported by substantial evidence.
       (e) Record.--In making determinations under subsection (d), 
     the court shall review the whole record, or those parts of it 
     cited by a party, and due account shall be taken of the rule 
     of prejudicial error.

     SEC. 408. CIVIL ACTION.

       (a) Jurisdiction.--The district courts of the United States 
     shall have jurisdiction over any civil action commenced under 
     this section by a covered employee who has completed 
     counseling under section 402 and mediation under section 403. 
     A civil action may be commenced by a covered employee only to 
     seek redress for a violation for which the employee has 
     completed counseling and mediation.
       (b) Parties.--The defendant shall be the employing office 
     alleged to have committed the violation, or in which the 
     violation is alleged to have occurred.
       (c) Jury Trial.--Any party may demand a jury trial where a 
     jury trial would be available in an action against a private 
     defendant under the relevant law made applicable by this Act. 
     In any case in which a violation of section 201 is alleged, 
     the court shall not inform the jury of the maximum amount of 
     compensatory damages available under section 201(b)(1) or 
     201(b)(3).

     SEC. 409. JUDICIAL REVIEW OF REGULATIONS.

       In any proceeding brought under section 407 or 408 in which 
     the application of a regulation issued under this Act is at 
     issue, the court may review the validity of the regulation in 
     accordance with the provisions of subparagraphs (A) through 
     (D) of section 706(2) of title 5, United States Code, except 
     that with respect to regulations approved by a joint 
     resolution under section 304(c), only the provisions of 
     section 706(2)(B) of title 5, United States Code, shall 
     apply. If the court determines that the regulation is 
     invalid, the court may apply, to the extent necessary and 
     appropriate, the most relevant substantive executive agency 
     regulation promulgated to implement the statutory provisions 
     with respect to which the invalid regulation was issued. 
     Except as provided in this section, the validity of 
     regulations issued under this Act is not subject to judicial 
     review.
     [[Page S74]] SEC. 410. OTHER JUDICIAL REVIEW PROHIBITED.

       Except as expressly authorized by sections 407, 408, and 
     409, the compliance or noncompliance with the provisions of 
     this Act and any action taken pursuant to this Act shall not 
     be subject to judicial review.

     SEC. 411. EFFECT OF FAILURE TO ISSUE REGULATIONS.

       In any proceeding under section 405, 406, 407, or 408, 
     except a proceeding to enforce section 220 with respect to 
     offices listed under section 220(d)(2), if the Board has not 
     issued a regulation on a matter for which this Act requires a 
     regulation to be issued, the hearing officer, Board, or 
     court, as the case may be, may apply, to the extent necessary 
     and appropriate, the most relevant substantive executive 
     agency regulation promulgated to implement the statutory 
     provision at issue in the proceeding.

     SEC. 412. EXPEDITED REVIEW OF CERTAIN APPEALS.

       (a) In General.--An appeal may be taken directly to the 
     Supreme Court of the United States from any interlocutory or 
     final judgment, decree, or order of a court upon the 
     constitutionality of any provision of this Act.
       (b) Jurisdiction.--The Supreme Court shall, if it has not 
     previously ruled on the question, accept jurisdiction over 
     the appeal referred to in paragraph (1), advance the appeal 
     on the docket, and expedite the appeal to the greatest extent 
     possible.

     SEC. 413. PRIVILEGES AND IMMUNITIES.

       The authorization to bring judicial proceedings under 
     sections 407 and 408 shall not constitute a waiver of 
     sovereign immunity for any other purpose, or of the 
     privileges of any Senator or Member of the House of 
     Representatives under article I, section 6, clause 1, of the 
     Constitution, or a waiver of any power of either the Senate 
     or the House of Representatives under the Constitution, 
     including under article I, section 5, clause 3, or under the 
     rules of either House relating to records and information 
     within its jurisdiction.

     SEC. 414. SETTLEMENT OF COMPLAINTS.

       Any settlement entered into by the parties to a process 
     described in section 210, 215, 220, or 401 shall be in 
     writing and not become effective unless it is approved by the 
     Executive Director. Nothing in this Act shall affect the 
     power of the Senate and the House of Representatives, 
     respectively, to establish rules governing the process by 
     which a settlement may be entered into by such House or by 
     any employing office of such House.

     SEC. 415. PAYMENTS.

       (a) Awards and Settlements.--Except as provided in 
     subsection (c), only funds which are appropriated to an 
     account of the Office in the Treasury of the United States 
     for the payment of awards and settlements may be used for the 
     payment of awards and settlements under this Act. There are 
     authorized to be appropriated for such account such sums as 
     may be necessary to pay such awards and settlements. Funds in 
     the account are not available for awards and settlements 
     involving the General Accounting Office, the Government 
     Printing Office, or the Library of Congress.
       (b) Compliance.--Except as provided in subsection (c), 
     there are authorized to be appropriated such sums as may be 
     necessary for administrative, personnel, and similar expenses 
     of employing offices which are needed to comply with this 
     Act.
       (c) OSHA, Accommodation, and Access Requirements.--Funds to 
     correct violations of section 201(a)(3), 210, or 215 of this 
     Act may be paid only from funds appropriated to the employing 
     office or entity responsible for correcting such violations. 
     There are authorized to be appropriated such sums as may be 
     necessary for such funds.

     SEC. 416. CONFIDENTIALITY.

       (a) Counseling.--All counseling shall be strictly 
     confidential, except that the Office and a covered employee 
     may agree to notify the employing office of the allegations.
       (b) Mediation.--All mediation shall be strictly 
     confidential.
       (c) Hearings and Deliberations.--Except as provided in 
     subsections (d) and (e), the hearings and deliberations of 
     hearing officers and of the Board and of its officers and 
     employees on complaints, charges, proposed citations, and 
     other pleadings under this Act shall be confidential.
       (d) Release of Records for Judicial Action.--The records of 
     hearing officers and the Board may be made public if required 
     for the purpose of judicial review under section 407.
       (e) Access by Committees of Congress.--At the discretion of 
     the Executive Director, the Executive Director may provide to 
     the Committee on Standards of Official Conduct of the House 
     of Representatives and the Select Committee on Ethics of the 
     Senate access to the records of the hearings and decisions of 
     the hearing officers and the Board, including all written and 
     oral testimony in the possession of the Office. The Executive 
     Director shall not provide such access until the Executive 
     Director has consulted with the individual filing the 
     complaint at issue, and until a final decision has been 
     entered under section 405(g) or 406(e).
       (f) Final Decisions.--A final decision entered under 
     section 405(g) or 406(e) shall be made public if it is in 
     favor of the complaining covered employee, or in favor of the 
     charging party under section 210, or if the decision reverses 
     a decision of a hearing officer which had been in favor of 
     the covered employee or charging party. The Board may make 
     public any other decision at its discretion.
                   TITLE V--MISCELLANEOUS PROVISIONS
     SEC. 501. EXERCISE OF RULEMAKING POWERS.

       The provisions of sections 102(b)(2) and 304(c) are 
     enacted--
       (1) as an exercise of the rulemaking power of the House of 
     Representatives and the Senate, respectively, and as such 
     they shall be considered as part of the rules of such House, 
     respectively, and such rules shall supersede other rules only 
     to the extent that they are inconsistent therewith; and
       (2) with full recognition of the constitutional right of 
     either House to change such rules (so far as relating to such 
     House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of each House.

     SEC. 502. POLITICAL AFFILIATION AND PLACE OF RESIDENCE.

       (a) In General.--It shall not be a violation of any 
     provision of section 201 to consider the--
       (1) party affiliation;
       (2) domicile; or
       (3) political compatibility with the employing office;

     of an employee referred to in subsection (b) with respect to 
     employment decisions.
       (b) Definition.--For purposes of subsection (a), the term 
     ``employee'' means--
       (1) an employee on the staff of the leadership of the House 
     of Representatives or the leadership of the Senate;
       (2) an employee on the staff of a committee or subcommittee 
     of--
       (A) the House of Representatives;
       (B) the Senate; or
       (C) a joint committee of the Congress;
       (3) an employee on the staff of a Member of the House of 
     Representatives or on the staff of a Senator;
       (4) an officer of the House of Representatives or the 
     Senate or a congressional employee who is elected by the 
     House of Representatives or Senate or is appointed by a 
     Member of the House of Representatives or by a Senator (in 
     addition an employee described in paragraph (1), (2), or 
     (3)); or
       (5) an applicant for a position that is to be occupied by 
     an individual described in any of paragraphs (1) through (4).

     SEC. 503. NONDISCRIMINATION RULES OF THE HOUSE AND SENATE.

       The Select Committee on Ethics of the Senate and the 
     Committee on Standards of Official Conduct of the House of 
     Representatives retain full power, in accordance with the 
     authority provided to them by the Senate and the House, with 
     respect to the discipline of Members, officers, and employees 
     for violating rules of the Senate and the House on 
     nondiscrimination in employment.

     SEC. 504. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Civil Rights Remedies.--
       (1) Sections 301 and 302 of the Government Employee Rights 
     Act of 1991 (2 U.S.C. 1201 and 1202) are amended to read as 
     follows:

     ``SEC. 301. GOVERNMENT EMPLOYEE RIGHTS ACT OF 1991.

       ``(a) Short Title.--This title may be cited as the 
     `Government Employee Rights Act of 1991'.
       ``(b) Purpose.--The purpose of this title is to provide 
     procedures to protect the rights of certain government 
     employees, with respect to their public employment, to be 
     free of discrimination on the basis of race, color, religion, 
     sex, national origin, age, or disability.
       ``(c) Definition.--For purposes of this title, the term 
     `violation' means a practice that violates section 302(a) of 
     this title.

     ``SEC. 302. DISCRIMINATORY PRACTICES PROHIBITED.

       ``(a) Practices.--All personnel actions affecting the 
     Presidential appointees described in section 303 or the State 
     employees described in section 304 shall be made free from 
     any discrimination based on--
       ``(1) race, color, religion, sex, or national origin, 
     within the meaning of section 717 of the Civil Rights Act of 
     1964 (42 U.S.C. 2000e-16);
       ``(2) age, within the meaning of section 15 of the Age 
     Discrimination in Employment Act of 1967 (29 U.S.C. 633a); or
       ``(3) disability, within the meaning of section 501 of the 
     Rehabilitation Act of 1973 (29 U.S.C. 791) and sections 102 
     through 104 of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12112-14).
       ``(b) Remedies.--The remedies referred to in sections 
     303(a)(1) and 304(a)--
       ``(1) may include, in the case of a determination that a 
     violation of subsection (a)(1) or (a)(3) has occurred, such 
     remedies as would be appropriate if awarded under sections 
     706(g), 706(k), and 717(d) of the Civil Rights Act of 1964 
     (42 U.S.C. 2000e-5(g), 2000e-5(k), 2000e-16(d)), and such 
     compensatory damages as would be appropriate if awarded under 
     section 1977 or sections 1977A(a) and 1977A(b)(2) of the 
     Revised Statutes (42 U.S.C. 1981 and 1981a(a) and (b)(2));
       ``(2) may include, in the case of a determination that a 
     violation of subsection (a)(2) has occurred, such remedies as 
     would be appropriate if awarded under section 15(c) of the 
     Age Discrimination in Employment Act of 1967 (29 U.S.C. 
     633a(c)); and
       ``(3) may not include punitive damages.''.
       (2) Sections 303 through 319, and sections 322, 324, and 
     325 of the Government Employee Rights Act of 1991 (2 U.S.C. 
     1203-1218, 1221, 1223, and 1224) are repealed, except as 
     provided in section 506 of this Act.
       (3) Sections 320 and 321 of the Government Employee Rights 
     Act of 1991 (2 U.S.C. 1219 
      [[Page S75]] and 1220) are redesignated as sections 303 and 
     304, respectively.
       (4) Sections 303 and 304 of the Government Employee Rights 
     Act of 1991, as so redesignated, are each amended by striking 
     ``and 307(h) of this title''.
       (5) Section 1205 of the Supplemental Appropriations Act of 
     1993 (2 U.S.C. 1207a) is repealed, except as provided in 
     section 506 of this Act.
       (b) Family and Medical Leave Act of 1993.--Title V of the 
     Family and Medical Leave Act of 1993 (2 U.S.C. 60m et seq.) 
     is repealed, except as provided in section 506 of this Act.
       (c) Architect of the Capitol.--
       (1) Repeal.--Section 312(e) of the Architect of the Capitol 
     Human Resources Act (Public Law 103-283; 108 Stat. 1444) is 
     repealed, except as provided in section 506 of this Act.
       (2) Application of general accounting office personnel act 
     of 1980.--The provisions of sections 751, 753, and 755 of 
     title 31, United States Code, amended by section 312(e) of 
     the Architect of the Capitol Human Resources Act, shall be 
     applied and administered as if such section 312(e) (and the 
     amendments made by such section) had not been enacted.
     SEC. 505. JUDICIAL BRANCH COVERAGE STUDY.

       The Judicial Conference of the United States shall prepare 
     a report for submission by the Chief Justice of the United 
     States to the Congress on the application to the judicial 
     branch of the Federal Government of--
       (1) the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 
     seq.);
       (2) title VII of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e et seq.);
       (3) the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.);
       (4) the Age Discrimination in Employment Act of 1967 (29 
     U.S.C. 621 et seq.);
       (5) the Family and Medical Leave Act of 1993 (29 U.S.C. 
     2611 et seq.);
       (6) the Occupational Safety and Health Act of 1970 (29 
     U.S.C. 651 et seq.);
       (7) chapter 71 (relating to Federal service labor-
     management relations) of title 5, United States Code;
       (8) the Employee Polygraph Protection Act of 1988 (29 
     U.S.C. 2001 et seq.);
       (9) the Worker Adjustment and Retraining Notification Act 
     (29 U.S.C. 2101 et seq.);
       (10) the Rehabilitation Act of 1973 (29 U.S.C. 701 et 
     seq.); and
       (11) chapter 43 (relating to veterans' employment and 
     reemployment) of title 38, United States Code.

     The report shall be submitted to Congress not later than 
     December 31, 1996, and shall include any recommendations the 
     Judicial Conference may have for legislation to provide to 
     employees of the judicial branch the rights, protections, and 
     procedures under the listed laws, including administrative 
     and judicial relief, that are comparable to those available 
     to employees of the legislative branch under titles I through 
     IV of this Act.

     SEC. 506. SAVINGS PROVISIONS.
       (a) Transition Provisions for Employees of the House of 
     Representatives and of the Senate.--
       (1) Claims arising before effective date.--If, as of the 
     date on which section 201 takes effect, an employee of the 
     Senate or the House of Representatives has or could have 
     requested counseling under section 305 of the Government 
     Employees Rights Act of 1991 (2 U.S.C. 1205) or Rule LI of 
     the House of Representatives, including counseling for 
     alleged violations of family and medical leave rights under 
     title V of the Family and Medical Leave Act of 1993, the 
     employee may complete, or initiate and complete, all 
     procedures under the Government Employees Rights Act of 1991 
     and Rule LI, and the provisions of that Act and Rule shall 
     remain in effect with respect to, and provide the exclusive 
     procedures for, those claims until the completion of all such 
     procedures.
       (2) Claims arising between effective date and opening of 
     office.--If a claim by an employee of the Senate or House of 
     Representatives arises under section 201 or 202 after the 
     effective date of such sections, but before the opening of 
     the Office for receipt of requests for counseling or 
     mediation under sections 402 and 403, the provisions of the 
     Government Employees Rights Act of 1991 (2 U.S.C. 1201 et 
     seq.) and Rule LI of the House of Representatives relating to 
     counseling and mediation shall remain in effect, and the 
     employee may complete under that Act or Rule the requirements 
     for counseling and mediation under sections 402 and 403. If, 
     after counseling and mediation is completed, the Office has 
     not yet opened for the filing of a timely complaint under 
     section 405, the employee may elect--
       (A) to file a complaint under section 307 of the Government 
     Employees Rights Act of 1991 (2 U.S.C. 1207) or Rule LI of 
     the House of Representatives, and thereafter proceed 
     exclusively under that Act or Rule, the provisions of which 
     shall remain in effect until the completion of all 
     proceedings in relation to the complaint, or
       (B) to commence a civil action under section 408.
       (3) Section 1205 of the supplemental appropriations act of 
     1993.--With respect to payments of awards and settlements 
     relating to Senate employees under paragraph (1) of this 
     subsection, section 1205 of the Supplemental Appropriations 
     Act of 1993 (2 U.S.C. 1207a) remains in effect.
       (b) Transition Provisions for Employees of the Architect of 
     the Capitol.---
       (1) Claims arising before effective date.--If, as of the 
     date on which section 201 takes effect, an employee of the 
     Architect of the Capitol has or could have filed a charge or 
     complaint regarding an alleged violation of section 312(e)(2) 
     of the Architect of the Capitol Human Resources Act (Public 
     Law 103-283), the employee may complete, or initiate and 
     complete, all procedures under section 312(e) of that Act, 
     the provisions of which shall remain in effect with respect 
     to, and provide the exclusive procedures for, that claim 
     until the completion of all such procedures.
       (2) Claims arising between effective date and opening of 
     office.--If a claim by an employee of the Architect of the 
     Capitol arises under section 201 or 202 after the effective 
     date of those provisions, but before the opening of the 
     Office for receipt of requests for counseling or mediation 
     under sections 402 and 403, the employee may satisfy the 
     requirements for counseling and mediation by exhausting the 
     requirements prescribed by the Architect of the Capitol in 
     accordance with section 312(e)(3) of the Architect of the 
     Capitol Human Resources Act (Public Law 103-283). If, after 
     exhaustion of those requirements the Office has not yet 
     opened for the filing of a timely complaint under section 
     405, the employee may elect--
       (A) to file a charge with the General Accounting Office 
     Personnel Appeals Board pursuant to section 312(e)(3) of the 
     Architect of the Capitol Human Resources Act (Public Law 103-
     283), and thereafter proceed exclusively under section 312(e) 
     of that Act, the provisions of which shall remain in effect 
     until the completion of all proceedings in relation to the 
     charge, or
       (B) to commence a civil action under section 408.
       (c) Transition Provision Relating To Matters Other Than 
     Employment Under Section 509 of the Americans with 
     Disabilities Act.--With respect to matters other than 
     employment under section 509 of the Americans with 
     Disabilities Act (42 U.S.C. 12209), the rights, protections, 
     remedies, and procedures of section 509 of such Act shall 
     remain in effect until section 210 of this Act takes effect 
     with respect to each of the entities covered by section 509 
     of such Act.

     SEC. 507. SEVERABILITY.

       If any provision of this Act or the application of such 
     provision to any person or circumstance is held to be 
     invalid, the remainder of this Act and the application of the 
     provisions of the remainder to any person or circumstance 
     shall not be affected thereby.
                                 ______

      By Mr. DOLE (for himself, Mr. Hatch, Mr. Thurmond, Mr. Simpson, 
        Mr. Gramm, Mr. Santorum, Mr. Abraham, Mr. DeWine, and Mr. Kyl):
  S. 3. A bill to control crime, and for other purposes; to the 
Committee on the Judiciary.


 the violent crime control and law enforcement improvement act of 1995

  Mr. DOLE. Mr. President, one of the most heated debates last Congress 
centered around the so-called crime bill. While our colleagues on the 
other side of the aisle ultimately succeeded in passing the bill, 
Republicans argued then--and continue to maintain--that the bill spent 
far too much on social programs of unproven worth, while failing to 
adopt some of the tough measures proposed to combat violent crime.
  To a large degree, S. 3 attempts to correct some of the obvious flaws 
and excesses of last year's crime bill. It also stakes out some 
critical new ground, particularly in the area of criminal procedure. 
More importantly, S. 3 is premised on the principle that criminals are 
not the victims of society, as some may claim, but rather that society 
itself is the victim of criminals and the violence they perpetuate. In 
addition, S. 3 recognizes that the States and localities, not the 
Federal Government, are on the front lines in the war against crime and 
are best equipped to devise effective anticrime strategies. When it 
comes to fighting crime, the role of the Federal Government should be 
to assist the States and localities in their own crime-fighting 
efforts, rather than impose unnecessary regulations and ``one-size-
fits-all'' requirements that often do more harm than good.


                   revisiting last year's crime bill

  For starters, S. 3 incorporates the 10 amendments that Senate 
Republicans unsuccessfully sought to offer during last year's crime-
bill debate. These amendments include: (1) Mandatory minimum penalties 
for those who use a gun in the commission of a crime, sell illegal 
drugs to minors, or employ minors to sell drugs; (2) repeal of more 
than $5 billion in wasteful social spending that was included in last 
year's crime bill, including spending on the Local Partnership Act, the 
model cities intensive grants, and the so-called drug courts; and (3) a 
provision requiring restitution for the victims of Federal crimes. S. 3 
also increases funding for 
 [[Page S76]] new prison construction and operation by nearly $1 
billion over the funding levels contained in last year's crime bill.


                    more police and more flexibility

  One of the most over-hyped proposals in the crime bill was the $8.8 
billion community-policing program. Although the Clinton administration 
claimed that the proposal would result in 100,000 new police hires over 
the next 6 years, most criminal-justice experts predict that the 
proposal will fully fund only a portion of that figure, perhaps as few 
as 20,000 new cops.
  Recognizing that the Federal Government does not have all the
   crime-fighting answers, S. 3 repackages the community-policing 
proposal into a single block grant program. Under the block grant 
program, States and localities will have the option of using the funds 
for a variety of purposes, including the hiring of new police officers, 
training existing officers, paying overtime, upgrading equipment, or 
investing in new crime-fighting technologies. Unlike the community-
policing program in last year's crime bill, S. 3 imposes no matching 
requirement or per-officer spending cap. This should give States and 
localities some much-needed flexibility in determining how best to 
utilize these important crime-fighting resources.

  At the same time, S. 3 beefs up funding for some of our Federal law 
enforcement agencies, including the FBI and the Drug Enforcement 
Administration. This will help ensure that these agencies will be able 
to carry out their important missions.


                           procedural reforms

  S. 3 also enacts some long overdue reforms to the criminal justice 
system. First, it reforms habeas corpus procedures in a way that 
safeguards the legitimate rights of the accused while ensuring that 
lawfully-imposed capital sentences are not endlessly delayed by 
frivolous appeals. Most importantly, S. 3 requires Federal courts to 
give deference to State court decisions on Federal constitutional 
claims, so long as the claims were ``fully and fairly'' litigated at 
the State level. Application of this principle will go a long way 
towards streamlining the criminal appeals process, thereby making 
punishment swifter and more certain and enhancing the confidence of the 
American people in our system of criminal justice.
  California Attorney General Dan Lungren, as well as the National 
Association of State Attorneys General, played a prominent role in the 
drafting of the habeas corpus reform provisions of S. 3. Their input 
was invaluable.
  Second, S. 3 abolishes the exclusionary rule as it pertains to the 
fourth amendment and establishes a tort remedy for those whose fourth 
amendment rights have been violated by an unreasonable search and 
seizure. Under the tort remedy, the United States will be liable for 
damages resulting from an unlawful search and seizure conducted by a 
law enforcement officer who was acting within the scope of his 
employment.
  The bottom line is that probative evidence, particularly in a 
criminal trial, should not be excluded because a police officer made a 
mistake. We should discipline the police officer and his supervising 
authority, not punish the crime victim by excluding probative evidence.
  And finally, S. 3 creates an obstruction of justice offense for 
attorneys who knowingly file false statements in criminal proceedings.


                               Conclusion

  Mr. President, when it comes to solving the crime epidemic in this 
country, Republicans don't have all the answers--not by a long shot. 
But, in our view, S. 3 provides the framework for the type of tough 
anticrime legislation the American people deserve.
  Finally, I want to thank my distinguished colleague from Utah, 
Senator Hatch, for his leadership in crafting this important 
legislation. During his tenure in the Senate, Senator Hatch has always 
been a relentless advocate for a no-nonsense approach to solving the 
violent crime problem. I look forward to his service as chairman of the 
Senate Judiciary Committee.
  Mr. President, I ask unanimous consent that the text of the bill and 
additional materials be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                  S. 3

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Violent 
     Crime Control and Law Enforcement Improvement Act of 1995''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

              TITLE I--INCARCERATION OF VIOLENT CRIMINALS

Sec. 101. Prison grants.
Sec. 102. Repeal.
Sec. 103. Civil rights of institutionalized persons.
Sec. 104. Report on prison work progress.
Sec. 105. Drug treatment for prisoners.

          TITLE II--STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

Sec. 201. Block grant program.

      TITLE III--FEDERAL EMERGENCY LAW ENFORCEMENT ASSISTANCE ACT

Sec. 301. Federal judiciary and Federal law enforcement.
Sec. 302. Drug Enforcement Administration.

                      TITLE IV--CRIMINAL PENALTIES

Sec. 401. Serious juvenile drug offenses as armed career criminal act 
              predicates.
Sec. 402. Prosecution of juveniles as adults.
Sec. 403. Availability of fines and supervised release for juvenile 
              offenders.
Sec. 404. Amendments concerning juvenile records.
Sec. 405. Mandatory minimum prison sentences for persons who use minors 
              in drug trafficking activities or sell drugs to minors.
Sec. 406. Mandatory minimum sentencing reform.
Sec. 407. Increased mandatory minimum sentences for criminals using 
              firearms.
Sec. 408. Penalties for arson.
Sec. 409. Interstate travel or use of mails or a facility in interstate 
              commerce to further kidnapping.

               TITLE V--FEDERAL CRIMINAL PROCEDURE REFORM

Sec. 501. Obstruction of justice.
Sec. 502. Conduct of Federal prosecutors.
Sec. 503. Fairness in jury selection.
Sec. 504. Balance in the composition of rules committees.
Sec. 505. Reimbursement of reasonable attorneys' fees.
Sec. 506. Mandatory restitution to victims of violent crimes.
Sec. 507. Admissibility of certain evidence.
Sec. 508. General habeas corpus reform.
Sec. 509. Technical amendment.
Sec. 510. Death penalty litigation procedures.

                   TITLE VI--PREVENTION OF TERRORISM

Sec. 601. Willful violation of Federal Aviation Administration 
              regulations.
Sec. 602. Assaults, murders, and threats against former Federal 
              officials in performance of official duties.
Sec. 603. Wiretap authority for alien smuggling and related offenses 
              and inclusion of alien smuggling as a RICO predicate.
Sec. 604. Authorization for interceptions of communications in certain 
              terrorism-related offenses.
Sec. 605. Participation of foreign and State government personnel in 
              interceptions of communications.
Sec. 606. Disclosure of intercepted communications to foreign law 
              enforcement agencies.
Sec. 607. Alien terrorist removal.
Sec. 608. Territorial sea.
Sec. 609. Clarification and extension of criminal jurisdiction over 
              certain terrorism offenses overseas.
Sec. 610. Federal Aviation Administration reporting responsibility.
Sec. 611. Information transfer.
Sec. 612. Extradition.
Sec. 613. Federal Bureau of Investigation report.
Sec. 614. Increased penalties for terrorism crimes.
Sec. 615. Criminal offenses committed outside the United States by 
              persons accompanying the armed forces.

           TITLE VII--MISCELLANEOUS AND TECHNICAL PROVISIONS

              Subtitle A--Elimination of Certain Programs

Sec. 701. Elimination of certain programs.

        Subtitle B--Amendments Relating to Violent Crime Control

Sec. 711. Violent crime and drug emergency areas repeal.
Sec. 712. Expansion of 18 U.S.C. 1959 to cover commission of all 
              violent crimes in aid of racketeering activity and 
              increased penalties.
Sec. 713. Authority to investigate serial killings.
Sec. 714. Firearms and explosives conspiracy.acquire arms.
Sec. 715. Increased penalties for violence in the course of riot 
              offenses.
Sec. 716. Pretrial detention for possession of firearms or explosives 
              by convicted felons.
[[Page S77]] Sec. 717. Elimination of unjustified scienter element for 
              carjacking.
Sec. 718. Theft of vessels.
Sec. 719. Clarification of agreement requirement for RICO conspiracy.
Sec. 720. Addition of attempt coverage for interstate domestic violence 
              offense.
Sec. 721. Addition of foreign murder as a money laundering predicate.
Sec. 722. Assaults or other crimes of violence for hire.
Sec. 723. Threatening to use a weapon of mass destruction.
Sec. 724. Technical amendments.

        Subtitle C--Amendments Relating to Courts and Sentencing

Sec. 731. Allowing a reduction of sentence for providing useful 
              investigative information although not regarding a 
              particular individual.
Sec. 732. Appeals from certain dismissals.
Sec. 733. Elimination of outmoded certification requirement from the 
              government appeal statute.
Sec. 734. Clarification of meaning of official detention for purposes 
              of credit for prior custody.
Sec. 735. Limitation on reduction of sentence for substantial 
              assistance of defendant.
Sec. 736. Improvement of hate crimes sentencing procedure.
Sec. 737. Clarification of length of supervised release terms in 
              controlled substance cases.
Sec. 738. Authority of court to impose a sentence of probation or 
              supervised release when reducing a sentence of 
              imprisonment in certain cases.
Sec. 739. Extension of parole commission to deal with ``old law'' 
              prisoners.
Sec. 740. Conforming amendments relating to supervised release.
Sec. 741. Repeal of outmoded provisions barring Federal prosecution of 
              certain offenses.

                  Subtitle D--Miscellaneous Amendments

Sec. 751. Conforming addition to obstruction of civil investigative 
              demand statute.
Sec. 752. Addition of attempted theft and counterfeiting offenses to 
              eliminate gaps and inconsistencies in coverage.
Sec. 753. Clarification of scienter requirement for receiving property 
              stolen from an Indian tribal organization.
Sec. 754. Larceny involving post office boxes and postal stamp vending 
              machines.
Sec. 755. Conforming amendment to law punishing obstruction of justice 
              by notification of existence of a subpoena for records in 
              certain types of investigations.
Sec. 756. Closing loophole in offense of altering or removing motor 
              vehicle identification numbers.
Sec. 757. Application of various offenses to possessions and 
              territories.
Sec. 758. Adjusting and making uniform the dollar amounts used in title 
              18 to distinguish between grades of offenses.
Sec. 759. Conforming amendment concerning marijuana plants.
Sec. 760. Access to certain records.
Sec. 761. Clarification of inapplicability of 18 U.S.C. 2515 to certain 
              disclosures.
Sec. 762. Clarifying or conforming amendments arising from the 
              enactment of Public Law 103-322.
Sec. 763. Technical amendments
Sec. 764. Severability.
              TITLE I--INCARCERATION OF VIOLENT CRIMINALS

     SEC. 101. PRISON GRANTS.

       Subtitle A of title II of the Violent Crime Control and Law 
     Enforcement Act of 1994 and the amendments made thereby are 
     amended to read as follows:
 ``Subtitle A--Violent Offender Incarceration and Truth in Sentencing 
                            Incentive Grants

     ``SEC. 20101. GRANTS FOR CORRECTIONAL FACILITIES.

       ``(a) Grant Authorization.--The Attorney General may make 
     grants to individual States and to States organized as multi-
     State compacts to construct, develop, expand, modify, 
     operate, or improve conventional correctional facilities, 
     including prisons and jails, for the confinement of violent 
     offenders, to ensure that prison cell space is available for 
     the confinement of violent offenders and to implement truth 
     in sentencing laws for sentencing violent offenders.
       ``(b) Eligibility.--To be eligible to receive a grant under 
     this subtitle, a State or States organized as multi-State 
     compacts shall submit an application to the Attorney General 
     that includes--
       ``(1)(A) except as provided in subparagraph (B), assurances 
     that the State or States, have implemented, or will 
     implement, correctional policies and programs, including 
     truth in sentencing laws that ensure that violent offenders 
     serve a substantial portion of the sentences imposed, that 
     are designed to provide sufficiently severe punishment for 
     violent offenders, including violent juvenile offenders, and 
     that the prison time served is appropriately related to the 
     determination that the inmate is a violent offender and for a 
     period of time deemed necessary to protect the public;
       ``(B) in the case of a State that on the date of enactment 
     of the Violent Crime Control and Law Enforcement Improvement 
     Act of 1995 practices indeterminant sentencing, a 
     demonstration that average times served for the offenses of 
     murder, rape, robbery, and assault in the State exceed by at 
     least 10 percent the national average of time served for such 
     offenses in all of the States;
       ``(2) assurances that the State or States have implemented 
     policies that provide for the recognition of the rights and 
     needs of crime victims;
       ``(3) assurances that funds received under this section 
     will be used to construct, develop, expand, modify, operate, 
     or improve conventional correctional facilities;
       ``(4) assurances that the State or States have involved 
     counties and other units of local government, when 
     appropriate, in the construction, development, expansion, 
     modification, operation, or improvement of correctional 
     facilities designed to ensure the incarceration of violent 
     offenders, and that the State or States will share funds 
     received under this section with counties and other units of 
     local government, taking into account the burden placed on 
     the units of local government when they are required to 
     confine sentenced prisoners because of overcrowding in State 
     prison facilities;
       ``(5) assurances that funds received under this section 
     will be used to supplement, not supplant, other Federal, 
     State, and local funds;
       ``(6) assurances that the State or States have implemented, 
     or will implement not later than 18 months after the date of 
     enactment of the Violent Crime Control and Law Enforcement 
     Improvement Act of 1995, policies to determine the veteran 
     status of inmates and to ensure that incarcerated veterans 
     receive the veterans benefits to which they are entitled; and
       ``(7) if applicable, documentation of the multi-State 
     compact agreement that specifies the construction, 
     development, expansion, modification, operation, or 
     improvement of correctional facilities.

     ``SEC. 20102. TRUTH IN SENTENCING INCENTIVE GRANTS.

       ``(a) Truth in Sentencing Grant Program.--Fifty percent of 
     the total amount of funds appropriated to carry out this 
     subtitle for each of fiscal years 1996, 1997, 1998, 1999, and 
     2000 shall be made available for truth in sentencing 
     incentive grants. To be eligible to receive such a grant, a 
     State must meet the requirements of section 20101(b) and 
     shall demonstrate that the State--
       ``(1) has in effect laws that require that persons 
     convicted of violent crimes serve not less than 85 percent of 
     the sentence imposed;
       ``(2) since 1993--
       ``(A) has increased the percentage of convicted violent 
     offenders sentenced to prison;
       ``(B) has increased the average prison time that will be 
     served in prison by convicted violent offenders sentenced to 
     prison; and
       ``(C) has in effect at the time of application laws 
     requiring that a person who is convicted of a violent crime 
     shall serve not less than 85 percent of the sentence imposed 
     if--
       ``(i) the person has been convicted on 1 or more prior 
     occasions in a court of the United States or of a State of a 
     violent crime or a serious drug offense; and
       ``(ii) each violent crime or serious drug offense was 
     committed after the defendant's conviction of the preceding 
     violent crime or serious drug offense; or
       ``(3) in the case of a State that on the date of enactment 
     of the Violent Crime Control and Law Enforcement Improvement 
     Act of 1995 practices indeterminant sentencing, a 
     demonstration that average times served for the offenses of 
     murder, rape, robbery, and assault in the State exceed by at 
     least 10 percent the national average of time served for such 
     offenses in all of the States.
       ``(b) Allocation of Truth in Sentencing Incentive Funds.--
     The amount available to carry out this section for any fiscal 
     year shall be allocated to each eligible State in the ratio 
     that the number of part 1 violent crimes reported by such 
     State to the Federal Bureau of Investigation for the previous 
     year bears to the number of part 1 violent crimes reported by 
     all States to the Federal Bureau of Investigation for the 
     previous year.

     ``SEC. 20103. VIOLENT OFFENDER INCARCERATION GRANTS.

       ``(a) Violent Offender Incarceration Grant Program.--Fifty 
     percent of the total amount of funds appropriated to carry 
     out this subtitle for each of fiscal years 1996, 1997, 1998, 
     1999, and 2000 shall be made available for violent offender 
     incarceration grants. To be eligible to receive such a grant, 
     a State or States must meet the requirements of section 
     20101(b).
       ``(b) Allocation of Violent Offender Incarceration Funds.--
     Funds made available to carry out this section shall be 
     allocated as follows:
       ``(1) 0.6 percent shall be allocated to each eligible 
     State, except that the United States Virgin Islands, American 
     Samoa, Guam, and the Northern Mariana Islands each shall be 
     allocated 0.05 percent.
       ``(2) The amount remaining after application of paragraph 
     (1) shall be allocated to each eligible State in the ratio 
     that the number of part 1 violent crimes reported by such 
     State to the Federal Bureau of Investigation for the previous 
     year bears to the number of part 1 violent crimes reported by 
     all States to the Federal Bureau of Investigation for the 
     previous year.

     ``SEC. 20104. RULES AND REGULATIONS.

       ``(a) In General.--Not later than 90 days after the date of 
     enactment of the Violent 
      [[Page S78]] Crime Control and Law Enforcement Improvement 
     Act of 1995, the Attorney General shall issue rules and 
     regulations regarding the uses of grant funds received under 
     this subtitle.
       ``(b) Best Available Data.--If data regarding part 1 
     violent crimes in any State for the previous year is 
     unavailable or substantially inaccurate, the Attorney General 
     shall utilize the best available comparable data regarding 
     the number of violent crimes for the previous year for the 
     State for the purposes of allocation of funds under this 
     subtitle.

     ``SEC. 20105. DEFINITIONS.

       ``In this subtitle--
       ``(1) the term `part 1 violent crimes' means murder and 
     non-negligent manslaughter, forcible rape, robbery, and 
     aggravated assault as reported to the Federal Bureau of 
     Investigation for purposes of the Uniform Crime Reports;
       ``(2) the term `State' or `States' means a State, the 
     District of Columbia, the Commonwealth of Puerto Rico, the 
     United States Virgin Islands, American Samoa, Guam, and the 
     Northern Mariana Islands; and
       ``(3) the term `indeterminate sentencing' means a system by 
     which the court has discretion in imposing the actual length 
     of the sentence, up to the statutory maximum, and an 
     administrative agency, or the court, controls release between 
     court-ordered minimum and maximum sentence.

     ``SEC. 20106. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subtitle--
       ``(1) $1,000,000,000 for fiscal year 1996;
       ``(2) $1,150,000,000 for fiscal year 1997;
       ``(3) $2,100,000,000 for fiscal year 1998;
       ``(4) $2,200,000,000 for fiscal year 1999; and
       ``(5) $2,270,000,000 for fiscal year 2000.''.

     SEC. 102. REPEAL.

       Subtitle B of title II of the Violent Crime and Law 
     Enforcement Act of 1994 is repealed.

     SEC. 103. CIVIL RIGHTS OF INSTITUTIONALIZED PERSONS.

       (a) Repeal.--Section 20416 of the Violent Crime Control and 
     Law Enforcement Act of 1994, and the amendments made by that 
     section, are repealed.
       (b) Exhaustion Requirement.--Section 7(a) of the Civil 
     Rights of Institutionalized Persons Act (42 U.S.C. 1997e) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``in any action brought'' and inserting 
     ``no action shall be brought'';
       (B) by striking ``the court shall'' and all that follows 
     through ``require exhaustion of'' and insert ``until''; and
       (C) by inserting ``and exhausted'' after ``available''; and
       (2) in paragraph (2) by inserting ``or are otherwise fair 
     and effective'' before the period at the end.
       (c) Frivolous Actions.--Section 7(a) of the Civil Rights of 
     Institutionalized Persons Act (42 U.S.C. 1997e(a)) is amended 
     by adding at the end the following:
       ``(3) The court shall on its own motion or on motion of a 
     party dismiss any action brought pursuant to section 1979 of 
     the Revised Statutes of the United States by an adult 
     convicted of a crime and confined in any jail, prison, or 
     other correctional facility if the court is satisfied that 
     the action fails to state a claim upon which relief can be 
     granted or is frivolous or malicious.''.
       (d) Modification of Required Minimum Standards.--Section 
     7(b)(2) of the Civil Rights of Institutionalized Persons Act 
     (42 U.S.C. 1997e(b)(2)) is amended--
       (1) by striking subparagraph (A); and
       (2) by redesignating subparagraphs (B) through (E) as 
     subparagraphs (A) through (D), respectively.
       (e) Review and Certification Procedure Changes.--Section 
     7(c) of the Civil Rights of Institutionalized Persons Act (42 
     U.S.C. 1997e(c)) is amended--
       (1) in paragraph (1), by inserting ``or are otherwise fair 
     and effective'' before the period at the end; and
       (2) in paragraph (2), by inserting ``or is no longer fair 
     and effective'' before the period at the end.
       (f) Proceedings In Forma Pauperis.--
       (1) Dismissal.--Section 1915(d) of title 28, United States 
     Code, is amended--
       (A) by inserting ``at any time'' after ``counsel and may'';
       (B) by striking ``and may'' and inserting ``and shall'';
       (C) by inserting ``fails to state a claim upon which relief 
     may be granted or'' after ``that the action''; and
       (D) by inserting ``, even if partial filing fees have been 
     imposed by the court'' before the period.
       (2) Prisoner's statement of assets.--Section 1915 of title 
     28, United States Code, is amended by adding at the end the 
     following:
       ``(f) If a prisoner in a correctional institution files an 
     affidavit in accordance with subsection (a), such prisoner 
     shall include in the affidavit a statement of all assets the 
     prisoner possesses. The court shall make inquiry of the 
     correctional institution in which the prisoner is 
     incarcerated for information available to such institution 
     relating to the extent of the prisoner's assets. The court 
     shall require full or partial payment of filing fees 
     according to the prisoner's ability to pay.''.

     SEC. 104. REPORT ON PRISON WORK PROGRESS.

       (a) Findings.--The Senate finds that--
       (1) Federal Prison Industries was created by Congress in 
     1934 as a wholly owned, nonprofit government corporation 
     directed to train and employ Federal prisoners;
       (2) traditionally, one-half of the Federal prison inmates 
     had meaningful prison jobs; now, with the increasing prison 
     population, less than one-quarter are employed in prison 
     industry positions;
       (3) expansion of the product lines and services of Federal 
     Prison Industries beyond its traditional lines of business 
     will enable more Federal prison inmates to work, and such 
     expansion must occur so as to minimize any adverse impact on 
     the private sector and labor; and
       (4) all able-bodied Federal prison inmates should work.
       (b) Report.--
       (1) In general.--In an effort to achieve the goal of full 
     Federal prison inmate employment, the Attorney General, in 
     consultation with the Director of the Bureau of Prisons, the 
     Secretary of Labor, the Secretary of Defense, the 
     Administrator of the General Services Administration, and the 
     private sector and labor, shall submit a report to Congress 
     not later than September 1, 1996, that describes a strategy 
     for employing more Federal prison inmates;
       (2) Contents.--The report shall--
       (A) contain a review of existing lines of business of 
     Federal Prison Industries;
       (B) consider the findings and recommendations of the final 
     report of the Summit on Federal Prison Industries (June 1992-
     July 1993);
       (C) make recommendations for legislation and changes in 
     existing law that may be necessary for the Federal Prison 
     Industries to employ more Federal prison inmates; and
       (D) focus on--
       (i) the creation of new job opportunities for Federal 
     prison inmates;
       (ii) the degree to which any expansion of lines of business 
     of Federal Prison Industries may adversely affect the private 
     sector or displace domestic labor; and
       (iii) the degree to which opportunities for partnership 
     between Federal Prison Industries and small business can be 
     fostered.

     SEC. 105. DRUG TREATMENT FOR PRISONERS.

       Section 3621(e) of title 18, United States Code (as added 
     by section 32001 of the Violent Crime Control and Law 
     Enforcement Act of 1994) is amended--
       (1) by striking paragraph (2);
       (2) by redesignating paragraphs (3), (4), (5), and (6) as 
     paragraphs (2), (3), (4), and (5), respectively; and
       (3) in paragraph (2), as redesignated by paragraph (2)--
       (A) by striking ``and'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(D) a full examination and evaluation of the 
     effectiveness of the treatment in reducing drug use among 
     prisoners.''.
          TITLE II--STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

     SEC. 201. BLOCK GRANT PROGRAM.

       Title I of the Violent Crime Control and Law Enforcement 
     Act of 1994 is amended to read as follows:
         ``TITLE I--STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

     ``SEC. 10001. BLOCK GRANTS TO STATES.

       ``(a) In General.--The Attorney General shall make grants 
     under this title to States for use by State and local 
     governments to--
       ``(1) hire, train, and employ on a continuing basis, new 
     law enforcement officers and necessary support personnel;
       ``(2) pay overtime to currently employed law enforcement 
     officers and necessary support personnel;
       ``(3) procure equipment, technology, and other material 
     that is directly related to basic law enforcement functions, 
     such as the detection or investigation of crime, or the 
     prosecution of criminals; and
       ``(4) establish and operate cooperative programs between 
     community residents and law enforcement agencies for the 
     control, detection, or investigation of crime, or the 
     prosecution of criminals.
       ``(b) Law Enforcement Trust Funds.--Funds received by a 
     State or unit of local government under this title may be 
     reserved in a trust fund established by the State or unit of 
     local government to fund the future needs of programs 
     authorized under subsection (a).
       ``(c) Allocation and Distribution of Funds.--
       ``(1) Allocation.--The amount made available pursuant to 
     section 10003 shall be allocated as follows:
       ``(A) 0.6 percent shall be allocated to each of the 
     participating States.
       ``(B) After the allocation under subparagraph (A), the 
     remainder shall be allocated on the basis of the population 
     of each State as determined by the 1990 decennial census as 
     adjusted annually, by allocating to each State an amount 
     bearing the same ratio to the total amount to be allocated 
     under this subparagraph as the population of the State bears 
     to the population of all States.
       ``(2) Distribution to local governments.--
       ``(A) In general.--A State receiving a grant under this 
     title shall ensure that not less than 85 percent of the funds 
     received are distributed to units of local government.
       ``(B) Limitation.--Not more than 2.5 percent of funds 
     received by a State in any grant year shall be used for costs 
     associated with the administration and distribution of grant 
     money.
       ``(d) Disbursement.--
     [[Page S79]]   ``(1) In general.--The Attorney General shall 
     issue regulations establishing procedures under which a State 
     may receive assistance under this title.
       ``(2) General requirements for qualification.--A State 
     qualifies for a payment under this title for a payment period 
     only if the State establishes that--
       ``(A) the State will establish a segregated account in 
     which the government will deposit all payments received under 
     this title;
       ``(B) the State will expend the payments in accordance with 
     the laws and procedures that are applicable to the 
     expenditure of revenues of the State;
       ``(C) the State will use accounting, audit, and fiscal 
     procedures that conform to guidelines that shall be 
     prescribed by the Attorney General after consultation with 
     the Comptroller General of the United States and, as 
     applicable, amounts received under this title shall be 
     audited in compliance with the Single Audit Act of 1984;
       ``(D) after reasonable notice to a State, the State will 
     make available to the Attorney General and the Comptroller 
     General of the United States, with the right to inspect, 
     records that the Attorney General or Comptroller General of 
     the United States reasonably requires to review compliance 
     with this title;
       ``(E) the State will make such reports as the Attorney 
     General reasonably requires, in addition to the annual 
     reports required under this title; and
       ``(F) the State will expend the funds only for the purposes 
     set forth in subsection (a).
       ``(3) Sanctions for noncompliance.--
       ``(A) In general.--If the Attorney General finds that a 
     State has not complied substantially with paragraph (2) or 
     regulations prescribed under such paragraph, the Attorney 
     General shall notify the State. The notice shall provide that 
     if the State does not initiate corrective action within 30 
     days after the date on which the State receives the notice, 
     the Attorney General will withhold additional payments to the 
     State for the current payment period and later payment 
     periods. Payments shall be withheld until such time as the 
     Attorney General determines that the State--
       ``(i) has taken the appropriate corrective action; and
       ``(ii) will comply with paragraph (2) and the regulations 
     prescribed under such paragraph.
       ``(B) Notice.--Before giving notice under subparagraph (A), 
     the Attorney General shall give the chief executive officer 
     of the State reasonable notice and an opportunity for 
     comment.
       ``(C) Payment conditions.--The Attorney General shall make 
     a payment to a State under subparagraph (A) only if the 
     Attorney General determines that the State--
       ``(i) has taken the appropriate corrective action; and
       ``(ii) will comply with paragraph (2) and regulations 
     prescribed under such paragraph.

     ``SEC. 10002. APPLICATIONS.

       ``(a) The Attorney General shall make grants under this 
     title only if a State has submitted an application to the 
     Attorney General in such form, and containing such 
     information, as is the Attorney General may reasonably 
     require.

     ``SEC. 10003. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title--
       ``(1) $2,050,000,000 for fiscal year 1996;
       ``(2) $2,150,000,000 for fiscal year 1997;
       ``(3) $1,900,000,000 for fiscal year 1998;
       ``(4) $1,900,000,000 for fiscal year 1999; and
       ``(5) $468,000,000 for fiscal year 2000.

     ``SEC. 10004. LIMITATION ON USE OF FUNDS.

       ``Funds made available to States under this title shall not 
     be used to supplant State or local funds, but shall be used 
     to increase the amount of funds that would, in the absence of 
     Federal funds received under this title, be made available 
     from State or local sources.''.
      TITLE III--FEDERAL EMERGENCY LAW ENFORCEMENT ASSISTANCE ACT

     SEC. 301. FEDERAL JUDICIARY AND FEDERAL LAW ENFORCEMENT.

       Title XIX of the Violent Crime Control and Law Enforcement 
     Act of 1994 is amended to read as follows:

     ``SEC. 190001. FEDERAL JUDICIARY AND FEDERAL LAW ENFORCEMENT.

       ``(a) Authorization of Additional Appropriations for the 
     Federal Judiciary.--There are authorized to be appropriated 
     for the activities of the Federal Judiciary to help meet the 
     increased demands for judicial activities, including 
     supervised release, and pretrial and probation services, that 
     will result from this Act--
       ``(1) $30,000,000 for fiscal year 1996;
       ``(2) $35,000,000 for fiscal year 1997;
       ``(3) $40,000,000 for fiscal year 1998;
       ``(4) $40,000,000 for fiscal year 1999; and
       ``(5) $55,000,000 for fiscal year 2000.
       ``(b) Authorization of Additional Appropriations for the 
     Department of Justice.--There are authorized to be 
     appropriated for the activities and agencies of the 
     Department of Justice, in addition to sums authorized 
     elsewhere in this section, to help meet the increased demands 
     for Department of Justice activities that will result from 
     this Act--
       ``(1) $40,000,000 for fiscal year 1996;
       ``(2) $40,000,000 for fiscal year 1997;
       ``(3) $40,000,000 for fiscal year 1998;
       ``(4) $40,000,000 for fiscal year 1999; and
       ``(5) $39,000,000 for fiscal year 2000.
       ``(c) Authorization of Additional Appropriations for the 
     Federal Bureau of Investigation.--There are authorized to be 
     appropriated for the activities of the Federal Bureau of 
     Investigation, to help meet the increased demands for Federal 
     Bureau of Investigation activities that will result from this 
     Act--
       ``(1) $203,150,000 for fiscal year 1996;
       ``(2) $184,500,000 for fiscal year 1997;
       ``(3) $284,000,000 for fiscal year 1998;
       ``(4) $147,500,000 for fiscal year 1999; and
       ``(5) $125,850,000 for fiscal year 2000.
       ``(d) Authorization of Additional Appropriations for United 
     States Attorneys.--There are authorized to be appropriated 
     for the account Department of Justice, Legal Activities, 
     Salaries and Expenses, United States Attorneys, to help meet 
     the increased demands for litigation and related activities 
     that will result from this Act--
       ``(1) $15,000,000 for fiscal year 1996;
       ``(2) $23,000,000 for fiscal year 1997;
       ``(3) $30,000,000 for fiscal year 1998;
       ``(4) $37,000,000 for fiscal year 1999; and
       ``(5) $45,000,000 for fiscal year 2000.
       ``(e) Authorization of Additional Appropriations for the 
     Department of the Treasury.--There are authorized to be 
     appropriated for the activities of the Bureau of Alcohol, 
     Tobacco, and Firearms, the United States Custom Service, the 
     Financial Crimes Enforcement Network, the Federal Law 
     Enforcement Training Center, the Criminal Investigation 
     Division of the Internal Revenue Service, and the United 
     States Secret Service to help meet the increased demands for 
     Department of the Treasury activities that will result from 
     this Act--
       ``(1) $30,000,000 for fiscal year 1995;
       ``(2) $70,000,000 for fiscal year 1996;
       ``(3) $90,000,000 for fiscal year 1997;
       ``(4) $110,000,000 for fiscal year 1998;
       ``(5) $125,000,000 for fiscal year 1999; and
       ``(6) $125,000,000 for fiscal year 2000.''.

     SEC. 302. DRUG ENFORCEMENT ADMINISTRATION.

       Section 180104 of the Violent Crime Control and Law 
     Enforcement Act of 1994 is amended to read as follows:

     ``SEC. 180104. AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR 
                   THE DRUG ENFORCEMENT ADMINISTRATION.

       ``There are authorized to be appropriated for the 
     activities of the Drug Enforcement Administration, to help 
     meet the increased demands for Drug Enforcement 
     Administration activities that will result from this Act--
       ``(1) $42,000,000 for fiscal year 1996;
       ``(2) $55,000,000 for fiscal year 1997;
       ``(3) $70,000,000 for fiscal year 1998;
       ``(4) $85,000,000 for fiscal year 1999; and
       ``(5) $98,000,000 for fiscal year 2000.''.
                     TITLE IV--CRIMINAL PENALTIES.

     SEC. 401. SERIOUS JUVENILE DRUG OFFENSES AS ARMED CAREER 
                   CRIMINAL ACT PREDICATES.

       Section 924(e)(2)(A) of title 18, United States Code, is 
     amended--
       (1) by striking ``or'' at the end of clause (i);
       (2) in clause (ii), by striking the semicolon and inserting 
     ``or which, if it had been prosecuted as a violation of the 
     Controlled Substances Act (21 U.S.C. 801 et seq.) at the time 
     of the offense, and because of the type and quantity of the 
     controlled substance involved, would have been punishable by 
     a maximum term of imprisonment of ten years or more; or''; 
     and
       (3) by adding at the end the following new clause:
       ``(iii) any act of juvenile delinquency that if committed 
     by an adult would be a serious drug offense described in this 
     paragraph;''.

     SEC. 402. PROSECUTION OF JUVENILES AS ADULTS.

       (a) Serious Juvenile Offenders.--
       (1) Repeal.--Section 150002 of the Violent Crime Control 
     and Law Enforcement Act of 1994, and the amendments made by 
     that section, are repealed.
       (2) Adult prosecution of serious juvenile offenders.--
     Section 5032 of title 18, United States Code, is amended--
       (A) in the first undesignated paragraph--
       (i) by striking ``an offense described in section 401 of 
     the Controlled Substances Act (21 U.S.C. 841), or section 
     1002(a), 1003, 1005, 1009, or 1010(b) (1), (2), or (3) of the 
     Controlled Substances Import and Export Act (21 U.S.C. 
     952(a), 953, 955, 959, 960(b) (1), (2), (3)),'' and inserting 
     ``an offense (or a conspiracy or attempt to commit an 
     offense) described in section 401, or 404 (insofar as the 
     violation involves more than 5 grams of a mixture or 
     substance which contains cocaine base), of the Controlled 
     Substances Act (21 U.S.C. 841, 844, or 846), section 1002(a), 
     1003, 1005, 1009, 1010(b) (1), (2), or (3), of the Controlled 
     Substances Import and Export Act (21 U.S.C. 952(a), 953, 955, 
     959, 960(b) (1), (2), or (3), or 963),''; and
       (ii) by striking ``922(p)'' and inserting ``924(b), (g), or 
     (h)'';
       (B) in the fourth undesignated paragraph--
       (i) by striking ``an offense described in section 401 of 
     the Controlled Substances Act (21 U.S.C. 841), or section 
     1002(a), 1005, or 1009 of the Controlled Substances Import 
     and Export Act (21 U.S.C. 952(a), 955, 959)'' and inserting 
     ``an offense (or a conspiracy or attempt to commit an 
     offense) described in section 401, or 404 (insofar as the 
     violation involves more than 5 grams of a mixture or 
     substance which contains cocaine base), of the Controlled 
     Substances Act (21 U.S.C. 841, 844, or 846), section 1002(a), 
     1005, 1009, 1010(b) (1), (2), or (3), of the Controlled 
     Substances Import and Export Act (21 U.S.C. 952(a), 955, 
     [[Page S80]] 959, 960(b) (1), (2), or (3), or 963), or 
     section 924 (b), (g), or (h) of this title,''; and
       (ii) by striking ``subsection (b)(1) (A), (B), or (C), (d), 
     or (e) of section 401 of the Controlled Substances Act, or 
     section 1002(a), 1003, 1009, or 1010(b) (1), (2), or (3) of 
     the Controlled Substances Import and Export Act (21 U.S.C. 
     952(a), 953, 959, 960(b) (1), (2), (3))'' and inserting ``or 
     an offense (or conspiracy or attempt to commit an offense) 
     described in section 401(b)(1) (A), (B), or (C), (d), or (e), 
     or 404 (insofar as the violation involves more than 5 grams 
     of a mixture or substance which contains cocaine base), of 
     the Controlled Substances Act (21 U.S.C. 841(b)(1) (A), (B), 
     or (C), (d), or (e), 844, or 846) or section 1002(a), 1003, 
     1009, 1010(b) (1), (2), or (3) of the Controlled Substances 
     Import and Export Act (21 U.S.C. 952(a), 953, 959, 960(b) 
     (1), (2), or (3), or 963)''; and
       (C) in the fifth undesignated paragraph by adding at the 
     end the following: ``In considering the nature of the 
     offense, as required by this paragraph, the court shall 
     consider the extent to which the juvenile played a leadership 
     role in an organization, or otherwise influenced other 
     persons to take part in criminal activities, involving the 
     use or distribution of controlled substances or firearms. 
     Such a factor, if found to exist, shall weigh heavily in 
     favor of a transfer to adult status, but the absence of this 
     factor shall not preclude such a transfer.''.
       (b) Crimes of Violence.--
       (1) Repeal.--Section 140001 of the Violent Crime Control 
     and Law Enforcement Act of 1994, and the amendments made by 
     that section, are repealed.
       (2) Prosecution as adults of violent juvenile offenders.--
     Section 5032 of title 18, United States Code, is amended by 
     adding at the end the following new paragraphs:
       ``Notwithstanding any other provision of this section or 
     any other law, a juvenile who was 13 years of age or older on 
     the date of the commission of an offense under section 113 
     (a), (b), or (c), 1111, 1113, 2111, 2113, or 2241 (a) or (c), 
     shall be prosecuted as an adult in Federal court. No juvenile 
     prosecuted as an adult under this paragraph shall be 
     incarcerated in an adult prison.
       ``If a juvenile prosecuted under this paragraph is 
     convicted, the juvenile shall be entitled to file a petition 
     for resentencing pursuant to applicable sentencing guidelines 
     when the juvenile reaches the age of 16.
       ``The United States Sentencing Commission shall promulgate 
     guidelines, or amend existing guidelines, if necessary, to 
     carry out this section. For resentencing determinations 
     pursuant to the preceding paragraph, the Commission may 
     promulgate guidelines, if necessary to permit sentencing 
     adjustments that may include adjustments that provide for 
     supervised release for defendants who have clearly 
     demonstrated--
       ``(A) an exceptional degree of responsibility for the 
     offense; and
       ``(B) a willingness and ability to refrain from further 
     criminal conduct.''.

     SEC. 403. AVAILABILITY OF FINES AND SUPERVISED RELEASE FOR 
                   JUVENILE OFFENDERS.

       Section 5037 of title 18, United States Code, is amended--
       (1) in subsection (a)--
       (A) in the first sentence by striking ``subsection (d)'' 
     and inserting ``subsection (e)''; and
       (B) in the second sentence, by striking ``place him on 
     probation, or commit him to official detention'' and 
     inserting ``place the juvenile on probation, commit the 
     juvenile to official detention (including the possibility of 
     a term of supervised release), or impose any fine that would 
     be authorized if the juvenile had been convicted as an 
     adult'';
       (2) by redesignating subsection (d) as subsection (e); and
       (3) by adding after subsection (c) the following new 
     subsection:
       ``(d) The term for which supervised release may be ordered 
     for a juvenile found to be a juvenile delinquent may not 
     extend--
       ``(1) in the case of a juvenile who is less than 18 years 
     old, beyond the earlier of--
       ``(A) five years after the date on which the juvenile 
     becomes 21 years old; or
       ``(B) the maximum supervised release term that would be 
     authorized by section 3583(b) if the juvenile had been tried 
     and convicted as an adult; or
       ``(2) in the case of a juvenile who is between 18 and 21 
     years old--
       ``(A) who if convicted as an adult would be convicted of a 
     Class A, B, or C felony, beyond 5 years after the juvenile's 
     release from official detention; or
       ``(B) in any other case beyond the lesser of--
       ``(i) 3 years; or
       ``(ii) the maximum term of supervised release that would be 
     authorized if the juvenile had been tried and convicted as an 
     adult.''.

     SEC. 404. AMENDMENTS CONCERNING JUVENILE RECORDS.

       (a) Section 5038 of title 18, United States Code, is 
     amended--
       (1) by striking subsections (d) and (f);
       (2) by redesignating subsection (e) as subsection (d); and
       (3) by adding at the end the following new subsection (e):
       ``(e) Whenever a juvenile has been found guilty of 
     committing an act which if committed by an adult would be an 
     offense described in clause (3) of the first paragraph of 
     section 5032, the juvenile shall be fingerprinted and 
     photographed, and the fingerprints and photograph shall be 
     sent to the Federal Bureau of Investigation, Identification 
     Division. The court shall also transmit to the Federal Bureau 
     of Investigation, Identification Division, the information 
     concerning the adjudication, including name, date of 
     adjudication, court, offenses, and sentence, along with the 
     notation that the matter was a juvenile adjudication. The 
     fingerprints, photograph, and other records and information 
     relating to a juvenile described in this subsection, or to a 
     juvenile who is prosecuted as an adult, shall be made 
     available in the manner applicable to adult defendants.''.

     SEC. 405. MANDATORY MINIMUM PRISON SENTENCES FOR PERSONS WHO 
                   USE MINORS IN DRUG TRAFFICKING ACTIVITIES OR 
                   SELL DRUGS TO MINORS.

       (a) Employment of Persons Under 18 Years of Age.--Section 
     420 of the Controlled Substances Act (21 U.S.C. 861) is 
     amended--
       (1) in subsection (b), by adding at the end the following: 
     ``Except to the extent a greater minimum sentence is 
     otherwise provided, a term of imprisonment of a person 21 or 
     more years of age convicted of drug trafficking under this 
     subsection shall be not less than 10 years. Notwithstanding 
     any other law, the court shall not place on probation or 
     suspend the sentence of any person sentenced under the 
     preceding sentence.''; and
       (2) in subsection (c) by inserting after the second 
     sentence the following: ``Except to the extent a greater 
     minimum sentence is otherwise provided, a term of 
     imprisonment of a person 21 or more years of age convicted of 
     drug trafficking under this subsection shall be a mandatory 
     term of life imprisonment. Notwithstanding any other law, the 
     court shall not place on probation or suspend the sentence of 
     any person sentenced under the preceding sentence.''.
       (b) Mandatory Minimum Prison Sentences for Persons 
     Convicted of Distribution of Drugs to Minors.--
       (1) In general.--Section 418 of the Controlled Substances 
     Act (21 U.S.C. 859) is amended--
       (A) in subsection (a)--
       (i) by striking ``twenty-one'' and inserting ``eighteen'';
       (ii) by striking ``eighteen'' and inserting ``twenty-one'';
       (iii) by striking ``not less than one year'' and inserting 
     ``not less than ten years''; and
       (iv) by striking the last sentence;
       (B) in subsection (b)--
       (i) by striking ``twenty-one'' and inserting ``eighteen'';
       (ii) by striking ``eighteen'' and inserting ``twenty-one'';
       (iii) by striking ``not less than one year'' and inserting 
     ``a mandatory term of life imprisonment'';
       (iv) by striking the last sentence; and
       (C) by adding at the end the following new subsection:
       ``(c) Offenses Involving Small Quantities of Marijuana.--
     The mandatory minimum sentencing provisions of this section 
     shall not apply to offenses involving five grams or less of 
     marijuana.''; and
       (D) in the section heading by striking ``twenty-one'' and 
     inserting ``eighteen''.
       (2) Technical Amendment.--The chapter analysis for chapter 
     13 of title 21, United States Code, is amended in the item 
     relating to section 859, by striking ``twenty-one'' and 
     inserting ``eighteen''.
       (c) Penalties for Drug Offenses in Drug-Free Zones.--
       (1) Repeal.--Section 90102 of the Violent Crime Control and 
     Law Enforcement Act of 1994 is repealed.
       (2) Increased penalties.--Section 419 of the Controlled 
     Substances Act (21 U.S.C. 860) is amended--
       (A) in subsection (a)--
       (i) by striking ``not less than one year'' and inserting 
     ``not less than five years''; and
       (ii) by striking the last sentence;
       (B) in subsection (b), by striking ``not less than three 
     years'' and inserting ``not less than ten years'';
       (C) by redesignating subsections (c), (d), and (e) as 
     subsections (d), (e), and (f), respectively; and
       (D) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Offenses Involving Small Quantities of Marijuana.--
     The mandatory minimum sentencing provisions of this section 
     shall not apply to offenses involving five grams or less of 
     marijuana.''.

     SEC. 406. MANDATORY MINIMUM SENTENCING REFORM.

       (a) Repeal.--Title VIII of the Violent Crime Control and 
     Law Enforcement Act of 1994, and the amendments made by that 
     title, is repealed.
       (b) Flexibility in Application of Mandatory Minimum 
     Sentence Provisions in Certain Circumstances.--
       (1) Amendment of title 18, united states code.--Section 
     3553 of title 18, United States Code, is amended by adding at 
     the end the following new subsection:
       ``(f) Mandatory Minimum Sentence Provisions.--
       ``(1) Sentencing under this section.--In the case of an 
     offense described in paragraph (2), the court shall, 
     notwithstanding the requirement of a mandatory minimum 
     sentence in that section, impose a sentence in accordance 
     with this section and the sentencing guidelines and any 
     pertinent policy statement issued by the United States 
     Sentencing Commission.
       ``(2) Offenses.--An offense is described in this paragraph 
     if--
     [[Page S81]]   ``(A) the defendant is subject to a mandatory 
     minimum term of imprisonment under section 401 or 402 of the 
     Controlled Substances Act (21 U.S.C. 841 and 844) or section 
     1010 of the Controlled Substances Import and Export Act (21 
     U.S.C. 960);
       ``(B) the defendant does not have--
       ``(i) any criminal history points under the sentencing 
     guidelines; or
       ``(ii) any prior conviction, foreign or domestic, for a 
     crime of violence against a person or a drug trafficking 
     offense that resulted in a sentence of imprisonment (or an 
     adjudication as a juvenile delinquent for an act that, if 
     committed by an adult, would constitute a crime of violence 
     against a person or a drug trafficking offense);
       ``(C) the offense did not result in death or serious bodily 
     injury (as defined in section 1365) to any person--
       ``(i) as a result of the act of any person during the 
     course of the offense; or
       ``(ii) as a result of the use by any person of a controlled 
     substance that was involved in the offense;
       ``(D) the defendant did not carry or otherwise have 
     possession of a firearm (as defined in section 921) or other 
     dangerous weapon during the course of the offense and did not 
     direct another person to carry a firearm and the defendant 
     had no knowledge of any other conspirator involved in the 
     offense possessing a firearm;
       ``(E) the defendant was not an organizer, leader, manager, 
     or supervisor of others (as defined or determined under the 
     sentencing guidelines) in the offense;
       ``(F) the defendant did not use, attempt to use, or make a 
     credible threat to use physical force against the person of 
     another during the course of the offense;
       ``(G) the defendant did not own the drugs, finance any part 
     of the offense or sell the drugs; and
       ``(H) the Government certifies that the defendant has 
     timely and truthfully provided to the Government all 
     information and evidence the defendant has concerning the 
     offense or offenses that were part of the same course of 
     conduct or of a common scheme or plan.''.
       (2) Harmonization.--
       (A) In general.--The United States Sentencing Commission--
       (i) may make such amendments as it deems necessary and 
     appropriate to harmonize the sentencing guidelines and policy 
     statements with section 3553(f) of title 18, United States 
     Code, as added by paragraph (1), and promulgate policy 
     statements to assist the courts in interpreting that 
     provision; and
       (ii) shall amend the sentencing guidelines, if necessary, 
     to assign to an offense under section 401 or 402 of the 
     Controlled Substances Act (21 U.S.C. 841 and 844) or section 
     1010 of the Controlled Substances Import and Export Act (21 
     U.S.C. 960) to which a mandatory minimum term of imprisonment 
     applies, a guideline level that will result in the imposition 
     of a term of imprisonment at least equal to the mandatory 
     term of imprisonment that is currently applicable, unless a 
     downward adjustment is authorized under section 3553(f) of 
     title 18, United States Code, as added by subsection (a).
       (B) Emergency amendments.--If the Commission determines 
     that an expedited procedure is necessary for amendments made 
     pursuant to paragraph (1) to become effective on the 
     effective date specified in subsection (c), the Commission 
     may promulgate such amendments as emergency amendments under 
     the procedures set forth in section 21(a) of the Sentencing 
     Act of 1987 (101 Stat. 1271), as though the authority under 
     that section had not expired.
       (3) Effective date.--The amendment made by paragraph (1) 
     and any amendments to the sentencing guidelines made by the 
     United States Sentencing Commission pursuant to paragraph (2) 
     shall apply with respect to sentences imposed for offenses 
     committed on or after the date that is 60 days after the date 
     of enactment of this Act.

     SEC. 407. INCREASED MANDATORY MINIMUM SENTENCES FOR CRIMINALS 
                   USING FIREARMS.

       Section 924(c)(1) of title 18, United States Code, is 
     amended by inserting after the first sentence the following: 
     ``Except to the extent a greater minimum sentence is 
     otherwise provided by the preceding sentence or by any other 
     provision of this subsection or any other law, a person who, 
     during and in relation to any crime of violence or drug 
     trafficking crime (including a crime of violence or drug 
     trafficking crime which provides for an enhanced punishment 
     if committed by the use of a deadly or dangerous weapon or 
     device) for which a person may be prosecuted in a court of 
     the United States, uses or carries a firearm shall, in 
     addition to the punishment provided for such crime of 
     violence or drug trafficking crime--
       ``(A) be punished by imprisonment for not less than 10 
     years;
       ``(B) if the firearm is discharged, be punished by 
     imprisonment for not less than 20 years; and
       ``(C) if the death of a person results, be punished by 
     death or by imprisonment for not less than life.

     Notwithstanding any other law, the court shall not place on 
     probation or suspend the sentence of any person convicted of 
     a violation of this subsection, nor shall the term of 
     imprisonment imposed under this subsection run concurrently 
     with any other term of imprisonment including that imposed 
     for the crime of violence or drug trafficking crime in which 
     the firearm was used or carried. No person sentenced under 
     this subsection shall be eligible for parole during the term 
     of imprisonment imposed under this subsection.''.

     SEC. 408. PENALTIES FOR ARSON.

       (a) Repeal.--Section 320106 of the Violent Crime Control 
     and Law Enforcement Act of 1994 is repealed.
       (b) Increased Penalties.--Section 844 of title 18, United 
     States Code, is amended--
       (1) in subsection (f)--
       (A) by striking ``not more than ten years, or fined not 
     more than $10,000'' and inserting ``not less than five years 
     and not more than 20 years, fined the greater of $100,000 or 
     the cost of repairing or replacing any property that is 
     damaged or destroyed''; and
       (B) by striking ``not more than twenty years, or fined not 
     more than $10,000'' and inserting ``not less than five years 
     and not more than 40 years, fined the greater of $200,000 or 
     the cost of repairing or replacing any property that is 
     damaged or destroyed'';
       (2) in subsection (h)--
       (A) in the first sentence by striking ``five years'' and 
     inserting ``10 years''; and
       (B) in the second sentence by striking ``ten years'' and 
     inserting ``20 years''; and
       (3) in subsection (i)--
       (A) by striking ``not more than ten years or fined not more 
     than $10,000'' and inserting ``not less than five years and 
     not more than 20 years, fined the greater of $100,000 or the 
     cost of repairing or replacing any property that is damaged 
     or destroyed''; and
       (B) by striking ``not more than twenty years or fined not 
     more than $10,000'' and inserting ``not less than five years 
     and not more than 40 years, fined the greater of $200,000 or 
     the cost of repairing or replacing any property that is 
     damaged or destroyed''.
       (c) Statute of Limitations for Arson.--Section 320917(a) of 
     the Violent Crime Control and Law Enforcement Act of 1994 is 
     amended by striking ``7'' and inserting ``10''.

     SEC. 409. INTERSTATE TRAVEL OR USE OF MAILS OR A FACILITY IN 
                   INTERSTATE COMMERCE TO FURTHER KIDNAPPING.

       Section 1201(a) of title 18, United States Code, is 
     amended--
       (1) in paragraph (3) by striking ``or'' at the end of the 
     paragraph;
       (2) in paragraph (5) by striking ``duties,'' and inserting 
     ``duties; or''; and
       (3) by inserting after paragraph (5) the following new 
     paragraphs:
       ``(6) an individual travels in interstate or foreign 
     commerce in furtherance of the offense; or
       ``(7) the mails or a facility in interstate or foreign 
     commerce is used in furtherance of the offense,''.
               TITLE V--FEDERAL CRIMINAL PROCEDURE REFORM

     SEC. 501. OBSTRUCTION OF JUSTICE.

       (a) In General.--Chapter 73 of title 18, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1518. False pleadings

       ``In a criminal proceeding, any attorney who files in a 
     court of the United States a brief, motion, answer, pleading, 
     or other signed document that the attorney knows to contain a 
     false statement of material fact or a false statement of law, 
     shall be found guilty of obstruction of justice.''.
       (b) Technical Amendment.--The analysis for chapter 73 of 
     title 18, United States Code, is amended by adding the 
     following new item:

``1518. False pleadings.''.
     SEC. 502. CONDUCT OF FEDERAL PROSECUTORS.

       Notwithstanding the ethical rules or the rules of the court 
     of any State, Federal rules of conduct adopted by the 
     Attorney General shall govern the conduct of prosecutions in 
     the courts of the United States.

     SEC. 503. FAIRNESS IN JURY SELECTION.

       Rule 24(b) of the Federal Rules of Criminal Procedure is 
     amended by striking ``the Government is also entitled to 6 
     peremptory challenges and the defendant or defendants jointly 
     to 10 peremptory challenges'' and inserting ``the Government 
     is also entitled to 6 peremptory challenges. A defendant 
     tried alone is entitled to 6 peremptory challenges, but 
     defendants tried jointly are entitled to 10 peremptory 
     challenges''.

     SEC. 504. BALANCE IN THE COMPOSITION OF RULES COMMITTEES.

       Section 2073 of title 28, United States Code, is amended--
       (1) in subsection (a)(2), by adding at the end the 
     following: ``On each such committee that makes 
     recommendations concerning rules that affect criminal cases, 
     including the Federal Rules of Criminal Procedure, the 
     Federal Rules of Evidence, the Federal Rules of Appellate 
     Procedure, the Rules Governing Section 2254 Cases, and the 
     Rules Governing Section 2255 Cases, the number of members who 
     represent or supervise the representation of defendants in 
     the trial, direct review, or collateral review of criminal 
     cases shall not exceed the number of members who represent or 
     supervise the representation of the Government or a State in 
     the trial, direct review, or collateral review of criminal 
     cases.''; and
       (2) in subsection (b), by adding at the end the following: 
     ``The number of members of the standing committees who 
     represent or supervise the representation of defendants in 
     the trial, direct review, or collateral review of criminal 
     cases shall not exceed the number of members who represent or 
     supervise the representation of the Government or a State in 
     the trial, direct review, or collateral review of criminal 
     cases.''.
     [[Page S82]] SEC. 505. REIMBURSEMENT OF REASONABLE ATTORNEYS' 
                   FEES.

       Section 526 of title 28, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(c)(1)(A) A current or former Department of Justice 
     attorney, agent, or employee who supervises an agent who is 
     the subject of a criminal or disciplinary investigation, 
     instituted on or after the date of enactment of this 
     subsection, arising out of acts performed in the discharge of 
     his or her duties in prosecuting or investigating a criminal 
     matter, who is not provided representation under Department 
     of Justice regulations, shall be entitled to reimbursement of 
     reasonable attorneys' fees incurred during and as a result of 
     the investigation if the investigation does not result in 
     adverse action against the attorney, agent, or employee.
       ``(B) A current or former attorney, agent, or employee who 
     supervises an agent employed as or by a Federal public 
     defender who is the subject of a criminal or disciplinary 
     investigation instituted on or after the date of enactment of 
     this subsection, arising out of acts performed in the 
     discharge of his or her duties in defending or investigating 
     a criminal matter in connection with the public defender 
     program, who is not provided representation by a Federal 
     public defender or the Administrative Office of the United 
     States Courts, is entitled to reimbursement of reasonable 
     attorneys' fees incurred during and as a result of the 
     investigation if the investigation does not result in adverse 
     action against the attorney, agent, or employee.
       ``(2) For purposes of paragraph (1), an investigation shall 
     be considered not to result in adverse action against an 
     attorney, agent, or employee if--
       ``(A) in the case of a criminal investigation, the 
     investigation does not result in indictment of, the filing of 
     a criminal complaint against, or the entry of a plea of 
     guilty by the attorney, agent, or supervising employee; and
       ``(B) in the case of a disciplinary investigation, the 
     investigation does not result in discipline or results in 
     only discipline less serious than a formal letter of 
     reprimand finding actual and specific wrongdoing.
       ``(3) The Attorney General shall provide notice in writing 
     of the conclusion and result of an investigation described in 
     paragraph (1).
       ``(4) An attorney, agent, or supervising employee who was 
     the subject of an investigation described in paragraph (1) 
     may waive his or her entitlement to reimbursement of 
     attorneys' fees under paragraph (1) as part of a resolution 
     of a criminal or disciplinary investigation.
       ``(5) An application for attorney fee reimbursement under 
     this subsection shall be made not later than 180 days after 
     the attorney, agent, or employee is notified in writing of 
     the conclusion and result of the investigation.
       ``(6) Upon receipt of a proper application under this 
     subsection for reimbursement of attorneys' fees, the Attorney 
     General and the Director of the Administrative Office of the 
     United States Courts shall award reimbursement for the amount 
     of attorneys' fees that are found to have been reasonably 
     incurred by the applicant as a result of an investigation.
       ``(7) The official making an award under this subsection 
     shall make inquiry into the reasonableness of the amount 
     requested, and shall consider--
       ``(A) the sufficiency of the documentation accompanying the 
     request;
       ``(B) the need or justification for the underlying item;
       ``(C) the reasonableness of the sum requested in light of 
     the nature of the investigation; and
       ``(D) current rates for equal services in the community in 
     which the investigation took place.
       ``(8)(A) Reimbursements of attorneys' fees ordered under 
     this subsection by the Attorney General shall be paid from 
     the appropriation made by section 1304 of title 31, United 
     States Code.
       ``(B) Reimbursements of attorneys' fees ordered under this 
     section by the Director of the Administrative Office of the 
     United States Courts shall be paid from appropriations 
     authorized by section 3006A(i) of title 18, United States 
     Code.
       ``(9) The Attorney General and the Director of the 
     Administrative Office of the United States Courts may 
     delegate their powers and duties under this subsection to an 
     appropriate subordinate.''.

     SEC. 506. MANDATORY RESTITUTION TO VICTIMS OF VIOLENT CRIMES.

       (a) Order of Restitution.--Section 3663 of title 18, United 
     States Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``may order'' and inserting ``shall 
     order''; and
       (B) by adding at the end the following new paragraph:
       ``(4) In addition to ordering restitution of the victim of 
     the offense of which a defendant is convicted, a court may 
     order restitution of any person who, as shown by a 
     preponderance of evidence, was harmed physically or 
     pecuniarily by unlawful conduct of the defendant during--
       ``(A) the criminal episode during which the offense 
     occurred; or
       ``(B) the course of a scheme, conspiracy, or pattern of 
     unlawful activity related to the offense.'';
       (2) in subsection (b)(1)(A) by striking ``impractical'' and 
     inserting ``impracticable'';
       (3) in subsection (b)(2) by inserting ``emotional or'' 
     after ``resulting in'';
       (4) in subsection (c) by striking ``If the Court decides to 
     order restitution under this section, the'' and inserting 
     ``The'';
       (5) by striking subsections (d), (e), (f), (g), and (h); 
     and
       (6) by adding at the end the following new subsections:
       ``(d)(1) The court shall order restitution to a victim in 
     the full amount of the victim's losses as determined by the 
     court and without consideration of--
       ``(A) the economic circumstances of the offender; or
       ``(B) the fact that a victim has received or is entitled to 
     receive compensation with respect to a loss from insurance or 
     any other source.
       ``(2) Upon determination of the amount of restitution owed 
     to each victim, the court shall specify in the restitution 
     order the manner in which and the schedule according to which 
     the restitution is to be paid, in consideration of--
       ``(A) the financial resources and other assets of the 
     offender;
       ``(B) projected earnings and other income of the offender; 
     and
       ``(C) any financial obligations of the offender, including 
     obligations to dependents.
       ``(3) A restoration order may direct the offender to make a 
     single, lump-sum payment, partial payment at specified 
     intervals, or such in-kind payments as may be agreeable to 
     the victim and the offender.
       ``(4) An in-kind payment described in paragraph (3) may be 
     in the form of--
       ``(A) return of property;
       ``(B) replacement of property; or
       ``(C) services rendered to the victim or to a person or 
     organization other than the victim.
       ``(e) When the court finds that more than 1 offender has 
     contributed to the loss of a victim, the court may make each 
     offender liable for payment of the full amount of restitution 
     or may apportion liability among the offenders to reflect the 
     level of contribution and economic circumstances of each 
     offender.
       ``(f) When the court finds that more than 1 victim has 
     sustained a loss requiring restitution by an offender, the 
     court shall order full restitution of each victim but may 
     provide for different payment schedules to reflect the 
     economic circumstances of each victim.
       ``(g)(1) If the victim has received or is entitled to 
     receive compensation with respect to a loss from insurance or 
     any other source, the court shall order that restitution be 
     paid to the person who provided or is obligated to provide 
     the compensation, but the restitution order shall provide 
     that all restitution of victims required by the order be paid 
     to the victims before any restitution is paid to such a 
     provider of compensation.
       ``(2) The issuance of a restitution order shall not affect 
     the entitlement of a victim to receive compensation with 
     respect to a loss from insurance or any other source until 
     the payments actually received by the victim under the 
     restitution order fully compensate the victim for the loss, 
     at which time a person that has provided compensation to the 
     victim shall be entitled to receive any payments remaining to 
     be paid under the restitution order.
       ``(3) Any amount paid to a victim under an order of 
     restitution shall be set off against any amount later 
     recovered as compensatory damages by the victim in--
       ``(A) any Federal civil proceeding; and
       ``(B) any State civil proceeding, to the extent provided by 
     the law of the State.
       ``(h) A restitution order shall provide that--
       ``(1) all fines, penalties, costs, restitution payments and 
     other forms of transfers of money or property made pursuant 
     to the sentence of the court shall be made by the offender to 
     an entity designated by the Director of the Administrative 
     Office of the United States Courts for accounting and payment 
     by the entity in accordance with this subsection;
       ``(2) the entity designated by the Director of the 
     Administrative Office of the United States Courts shall--
       ``(A) log all transfers in a manner that tracks the 
     offender's obligations and the current status in meeting 
     those obligations, unless, after efforts have been made to 
     enforce the restitution order and it appears that compliance 
     cannot be obtained, the court determines that continued 
     recordkeeping under this subparagraph would not be useful;
       ``(B) notify the court and the interested parties when an 
     offender is 90 days in arrears in meeting those obligations; 
     and
       ``(3) the offender shall advise the entity designated by 
     the Director of the Administrative Office of the United 
     States Courts of any change in the offender's address during 
     the term of the restitution order.
       ``(i) A restitution order shall constitute a lien against 
     all property of the offender and may be recorded in any 
     Federal or State office for the recording of liens against 
     real or personal property.
       ``(j) Compliance with the schedule of payment and other 
     terms of a restitution order shall be a condition of any 
     probation, parole, or other form of release of an offender. 
     If a defendant fails to comply with a restitution order, the 
     court may revoke probation or a term of supervised release, 
     modify the term or conditions of probation or a term of 
     supervised release, hold the defendant in contempt of court, 
     enter a restraining order or injunction, order the sale of 
     property of the 
      [[Page S83]] defendant, accept a performance bond, or take 
     any other action necessary to obtain compliance with the 
     restitution order. In determining what action to take, the 
     court shall consider the defendant's employment status, 
     earning ability, financial resources, the willfulness in 
     failing to comply with the restitution order, and any other 
     circumstances that may have a bearing on the defendant's 
     ability to comply with the restitution order.
       ``(k) An order of restitution may be enforced--
       ``(1) by the United States--
       ``(A) in the manner provided for the collection and payment 
     of fines in subchapter (B) of chapter 229 of this title; or
       ``(B) in the same manner as a judgment in a civil action; 
     and
       ``(2) by a victim named in the order to receive the 
     restitution, in the same manner as a judgment in a civil 
     action.
       ``(l) A victim or the offender may petition the court at 
     any time to modify a restitution order as appropriate in view 
     of a change in the economic circumstances of the offender.''.
       (b) Procedure for Issuing Order of Restitution.--Section 
     3664 of title 18, United States Code, is amended--
       (1) by striking subsection (a);
       (2) by redesignating subsections (b), (c), (d), and (e) as 
     subsections (a), (b), (c), and (d);
       (3) by amending subsection (a), as redesignated by 
     paragraph (2), to read as follows:
       ``(a) The court may order the probation service of the 
     court to obtain information pertaining to the amount of loss 
     sustained by any victim as a result of the offense, the 
     financial resources of the defendant, the financial needs and 
     earning ability of the defendant and the defendant's 
     dependents, and such other factors as the court deems 
     appropriate. The probation service of the court shall include 
     the information collected in the report of presentence 
     investigation or in a separate report, as the court 
     directs.''; and
       (4) by adding at the end thereof the following new 
     subsection:
       ``(e) The court may refer any issue arising in connection 
     with a proposed order of restitution to a magistrate or 
     special master for proposed findings of fact and 
     recommendations as to disposition, subject to a de novo 
     determination of the issue by the court.''.

     SEC. 507. ADMISSIBILITY OF CERTAIN EVIDENCE.

       (a) Confessions.--Section 3501 of title 18, United States 
     Code, is amended--
       (1) in subsection (a), by inserting after the first 
     sentence the following new sentence: ``The defendant shall 
     have the burden of proving by a preponderance of the evidence 
     that a confession was not voluntary.''; and
       (2) in subsection (c) by striking ``and if such 
     confession'' and all that follows through the end of the 
     subsection.
       (b) Reasonable Search or Seizure.--
       (1) In general.--Chapter 223 of title 18, United States 
     Code, is amended by inserting after section 3502 the 
     following new section:

     ``Sec. 3502A. Admissibility of evidence obtained by search or 
       seizure

       ``(a) Evidence Obtained by Objectively Reasonable Search or 
     Seizure.--Evidence obtained as a result of a search or 
     seizure that is otherwise admissible in a Federal criminal 
     proceeding shall not be excluded in a proceeding in a court 
     of the United States on the ground that the search or seizure 
     was in violation of the fourth amendment to the Constitution.
       ``(b) Evidence Not Excludable by Statute or Rule.--Evidence 
     shall not be excluded in a proceeding in a court of the 
     United States on the ground that it was obtained in violation 
     of a statute, an administrative rule, or a rule of court 
     procedure unless exclusion is expressly authorized by statute 
     or by a rule prescribed by the Supreme Court pursuant to 
     chapter 131 of title 28.
       ``(c) Rule of Construction.--This section shall not be 
     construed to require or authorize the exclusion of evidence 
     in any proceeding.''.
       (2) Technical amendment.--The chapter analysis for chapter 
     223 of title 18, United States Code, is amended by inserting 
     after the item for section 3502 the following new item:

``3502A. Admissibility of evidence obtained by search or seizure.''.
       (c) Illegal Search and Seizure.--
       (1) In general.--Title 28, United States Code, is amended 
     by inserting after chapter 171, the following new chapter:

               ``CHAPTER 172--ILLEGAL SEARCH AND SEIZURE
``Sec.
``2691. Definitions.
``2692. Tort claims; illegal search and seizure.
``2693. Sanctions against investigative or law enforcement officers.
``2694. Judgment as bar.
``2695. Attorneys' fees and costs.
``2696. Applicability of other tort claims procedures.
     ``Sec. 2691. Definitions

       ``In this chapter--
       ``(1) the term `Federal agency' includes an executive 
     department, military department, independent establishment of 
     the United States, and a corporation acting primarily as an 
     instrumentality or agency of the United States, but does not 
     include a contractor with the United States; and
       ``(2) the term `investigative or law enforcement officer' 
     means--
       ``(A) an officer of the United States who is empowered by 
     law to execute searches, to seize evidence, or to make 
     arrests for any violation of Federal law;
       ``(B) a person acting under or at the request of such an 
     officer; or
       ``(C) a State or local law enforcement officer, if the case 
     is prosecuted in a court of the United States.

     ``Sec. 2692. Tort claims; illegal search and seizure

       ``(a) In General.--The United States shall be liable for 
     damages resulting from a search or seizure conducted by an 
     investigative or law enforcement officer, acting within the 
     scope of the officer's office or employment, in violation of 
     the fourth amendment to the Constitution.
       ``(b) Actual and Punitive Damages.--A person who is 
     aggrieved by a violation described in subsection (a) may 
     recover actual damages and such punitive damages as the court 
     may award under subsection (c).
       ``(c) Award of Punitive Damages.--Punitive damages may be 
     awarded by the court in an amount not exceeding $10,000, upon 
     consideration of all of the circumstances of the case, 
     including--
       ``(1) the extent of the investigative or law enforcement 
     officer's deviation from permissible conduct;
       ``(2) the extent to which the violation was willful, 
     reckless, or grossly negligent;
       ``(3) the extent to which the aggrieved person's privacy 
     was invaded;
       ``(4) the extent of the aggrieved person's physical, 
     mental, and emotional injury;
       ``(5) the extent of any property damage; and
       ``(6) the effect that making an award of punitive damages 
     would have in preventing future violations of the fourth 
     amendment to the Constitution.
       ``(d) Limitation on Award to Offender.--An award of 
     nonpunitive damages under this section to a person who is 
     convicted of an offense for which evidence of the offense was 
     seized in violation of the fourth amendment to the 
     Constitution shall be limited to damages for actual physical 
     personal injury and actual property damage sustained as a 
     result of the unconstitutional search and seizure.
       ``(e) Amount of Award.--
       ``(1) In general.--Except as provided in paragraph (2), in 
     an action brought pursuant to this section, a judgment, 
     award, compromise, or settlement shall be in an amount that 
     is not more than $30,000, including actual and punitive 
     damages.
       ``(2) Exception.--The limitation provided in paragraph (1) 
     shall not apply to a judgment, award, compromise, or 
     settlement if the actual damages are in an amount that is 
     greater than $30,000.
       ``(3) Prejudgment interest.--The United States shall not be 
     liable for interest prior to judgment.
       ``(f) Period of Limitation.--An action under this section 
     shall be brought within the period of limitation provided in 
     section 2401(b).

     ``Sec. 2693. Sanctions against investigative or law 
       enforcement officers

       ``An investigative or law enforcement officer who conducts 
     a search or seizure in violation of the fourth amendment to 
     the Constitution shall be subject to appropriate discipline 
     in the discretion of the Federal agency employing the 
     officer, if that agency determines, after notice and hearing, 
     that the officer conducted the search or seizure lacking a 
     good faith belief that the search or seizure was 
     constitutional.

     ``Sec. 2694. Judgment as bar

       ``The remedy against the United States provided under this 
     chapter shall be the exclusive civil remedy for a violation 
     of the fourth amendment to the Constitution by any 
     investigative or law enforcement officer acting within the 
     scope of the officer's office or employment.

     ``Sec. 2695. Attorneys' fees and costs

       ``In an action brought under this chapter, the court may 
     award any claimant who prevails in the action, other than the 
     United States, reasonable attorney's fees and other 
     litigation costs reasonably incurred in prosecuting the 
     claim.

     ``Sec. 2696. Applicability of other tort claims procedures

       ``(a) In General.--The procedures provided in sections 
     2672, 2675, 2677, 2678, 2679, and 2680 apply to an action 
     brought under this chapter.
       ``(b) Treatment as Employee of the United States.--For the 
     purposes of the sections referred to in subsection (a), an 
     investigative or law enforcement officer who conducts a 
     search or seizure in violation of the fourth amendment to the 
     Constitution shall be treated as if the officer were an 
     `employee of the United States'.
       ``(c) Treatment of State or Local Officers.--A State or 
     local officer who violates the fourth amendment to the 
     Constitution in a case that is later prosecuted in a court of 
     the United States shall, for purposes of this section, be an 
     employee of the United States.''.
       (2) Technical amendment.--The part analysis for part VI of 
     title 28, United States Code, is amended by inserting after 
     the item relating to chapter 171 the following new item:

``172. Illegal search and seizure...........................2691''.....
       (d) Jurisdiction.--Section 1346 of title 28, United States 
     Code, is amended by inserting after subsection (f) the 
     following new subsection:
       ``(g) The district courts, together with the United States 
     District for the Territory of 
      [[Page S84]] Guam, the District Court for the Northern 
     Mariana Islands, and the District Court of the Virgin 
     Islands, shall have exclusive original jurisdiction of any 
     civil action on a claim against the United States, for money 
     damages, brought under chapter 172.''.
       (e) Technical Amendment.--Section 1402(b) of title 28, 
     United States Code, is amended by inserting ``or subsection 
     (g)'' after ``subsection (b)''.
       (f) Effective Date.--The amendments made by this section 
     shall apply only to claims arising on or after the date of 
     enactment of this Act.

     SEC. 508. GENERAL HABEAS CORPUS REFORM.

       (a) Period of Limitation.--Section 2244 of title 28, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(d) A one-year period of limitation shall apply to an 
     application for a writ of habeas corpus by a person in 
     custody pursuant to the judgment of a State court. The 
     limitation period shall run from the latest of--
       ``(1) the date on which State remedies are exhausted;
       ``(2) the date on which the impediment to filing an 
     application created by State action in violation of the 
     Constitution or laws of the United States is removed, where 
     the applicant was prevented from filing by such State action;
       ``(3) the date on which the Federal constitutional right 
     asserted was initially recognized by the Supreme Court, where 
     the right has been newly recognized by the Court and is made 
     retroactively applicable; or
       ``(4) the date on which the factual predicate of the claim 
     or claims presented could have been discovered through the 
     exercise of due diligence.''.
       (b) Appeal.--Section 2253 of title 28, United States Code, 
     is amended to read as follows:

     ``Sec. 2253. Appeal

       ``(a) In General.--In a habeas corpus proceeding or a 
     proceeding under section 2255 before a circuit or district 
     judge, the final order shall be subject to review, on appeal, 
     by the court of appeals for the circuit where the proceeding 
     is held.
       ``(b) Validity of Warrant or Detention.--There shall be no 
     right of appeal from such an order in a proceeding to test 
     the validity of a warrant to remove, to another district or 
     place for commitment or trial, a person charged with a 
     criminal offense against the United States, or to test the 
     validity of the detention of such person pending removal 
     proceedings.
       ``(c) Requirement for Certificate of Probable Cause.--
       ``(1) Requirement.--Unless a circuit justice or judge 
     issues a certificate of probable cause, an appeal may not be 
     taken to the court of appeals from--
       ``(A) the final order in a habeas corpus proceeding in 
     which the detention complained of arises out of process 
     issued by a State court; or
       ``(B) the final order in a proceeding under section 2255.
       ``(2) Substantial showing.--A certificate of probable cause 
     may issue under paragraph (1) only if the petitioner has made 
     a substantial showing of the denial of a Federal 
     constitutional right.
       ``(3) Specification of issues.--The certificate of probable 
     cause under paragraph (1) shall indicate which specific issue 
     or issues satisfy the showing required by paragraph (2).''.
       (c) Amendment of Federal Rules of Appellate Procedure.--
     Rule 22 of the Federal Rules of Appellate Procedure is 
     amended to read as follows:
     ``Rule 22. Habeas corpus and section 2255 proceedings
       ``(a) Application for an Original Writ of Habeas Corpus.--
     An application for a writ of habeas corpus shall be made to 
     the appropriate district court. If application is made to a 
     circuit judge, the application shall be transferred to the 
     appropriate district court. If an application is made to or 
     transferred to the district court and denied, renewal of the 
     application before a circuit judge shall not be permitted. 
     The petitioner may, pursuant to section 2253, appeal to the 
     appropriate court of appeals from the order of the district 
     court denying the writ.
       ``(b) Necessity of Certificate of Probable Cause for 
     Appeal.--In a habeas corpus proceeding in which the detention 
     complained of arises out of process issued by a State court, 
     and in a motion proceeding pursuant to section 2255 of title 
     28, United States Code, an appeal by the applicant may not 
     proceed unless the Court of Appeals issues a certificate of 
     probable cause. If a request for a certificate of probable 
     cause is addressed to the court of appeals, it shall be 
     deemed addressed to the judges thereof and shall be 
     considered by a panel of the Court of Appeals. If no express 
     request for a certificate is filed, the notice of appeal 
     shall be deemed to constitute a request addressed to the 
     judges of the court of appeals. If an appeal is taken by a 
     State or the Government or its representative, a certificate 
     of probable cause is not required.''.
       (d) Section 2254 Amendment.--Section 2254 of title 28, 
     United States Code, is amended--
       (1) by amending subsection (b) to read as follows:
       ``(b)(1) An application for a writ of habeas corpus on 
     behalf of a person in custody pursuant to the judgment of a 
     State court shall not be granted unless it appears that--
       ``(A) the applicant has exhausted the remedies available in 
     the courts of the State; or
       ``(B)(i) there is an absence of available State corrective 
     process; or
       ``(ii) circumstances exist that render such process 
     ineffective to protect the rights of the applicant.
       ``(2) An application may be denied if the court is 
     satisfied that the application is frivolous or malicious, 
     notwithstanding the failure of the applicant to exhaust the 
     remedies available in the courts of the State.
       ``(3) A State shall not be deemed to have waived the 
     exhaustion requirement or be estopped from reliance upon the 
     requirement unless the State, through counsel, expressly 
     waives the requirement.'';
       (2) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (3) by inserting after subsection (c) the following new 
     subsection:
       ``(d) An application for a writ of habeas corpus on behalf 
     of a person in custody pursuant to the judgment of a State 
     court shall not be granted with respect to any claim that has 
     been fully and fairly adjudicated in State proceedings.'';
       (4) by amending subsection (e), as redesignated by 
     paragraph (2), to read as follows:
       ``(e)(1) In a proceeding instituted by an application for a 
     writ of habeas corpus by a person in custody pursuant to the 
     judgment of a State court, a determination of a factual issue 
     made in the case by a State court after any procedure 
     sufficient to develop an adequate record shall be presumed to 
     be correct. The applicant shall have the burden of rebutting 
     this presumption by clear and convincing evidence.
       ``(2) If the applicant has failed to develop the factual 
     basis of a claim in State court proceedings, the Federal 
     court shall not hold an evidentiary hearing on the claim 
     unless the applicant shows that--
       ``(A) the claim relies on (i) a new rule of constitutional 
     law, made retroactive by the Supreme Court, that was 
     previously unavailable; or (ii) a factual predicate that 
     could not have been previously discovered through the 
     exercise of due diligence; and
       ``(B) the facts underlying the claim would be sufficient to 
     establish by clear and convincing evidence that, but for 
     constitutional error, no reasonable factfinder would have 
     found the petitioner guilty of the underlying offense or 
     eligible for the death penalty under State law.''; and
       (5) by adding at the end the following new subsection:
       ``(h) In all proceedings brought under this section, and 
     any subsequent proceedings on review, appointment of counsel 
     for a petitioner who is or becomes financially unable to 
     afford counsel shall be in the discretion of the court, 
     except as provided by a rule promulgated by the Supreme Court 
     pursuant to statutory authority. Appointment of counsel under 
     this section shall be governed by section 3006A of title 18, 
     United States Code.''.
       (e) Section 2255 Amendments.--Section 2255 of title 28, 
     United States Code, is amended--
       (1) by striking the second and the fifth paragraphs; and
       (2) by adding at the end the following new paragraphs:
       ``A one-year period of limitation shall apply to a motion 
     under this section. The limitation period shall run from the 
     latest of--
       ``(1) the date on which the judgment of conviction becomes 
     final;
       ``(2) the date on which the impediment to making a motion 
     created by governmental action in violation of the 
     Constitution or laws of the United States is removed, where 
     the movant was prevented from making a motion by such 
     governmental action;
       ``(3) the date on which the right asserted was initially 
     recognized by the Supreme Court, if that right has been newly 
     recognized by the Court and is made retroactively applicable; 
     or
       ``(4) the date on which the factual predicate of the claim 
     or claims presented could have been discovered through the 
     exercise of due diligence.
       ``In all proceedings brought under this section, and any 
     subsequent proceedings on review, appointment of counsel for 
     a movant who is or becomes financially unable to afford 
     counsel shall be in the discretion of the court, except as 
     provided by a rule promulgated by the Supreme Court pursuant 
     to statutory authority. Appointment of counsel under this 
     section shall be governed by section 3006A of title 18, 
     United States Code.''.
       (f) Second or Successive Petitions.--
       (1) Certification.--A second or successive motion must be 
     certified by a panel of the appropriate Federal Court of 
     Appeals to contain--
       (A) newly discovered evidence sufficient to undermine the 
     court's confidence in the factfinder's determination of the 
     prisoner's guilt of the offense or offenses for which the 
     sentence was imposed; or
       (B) a new rule of constitutional law, made retroactive by 
     the Supreme Court, that was previously unavailable.
       (2) Conforming amendment to section 2244(a).--Section 
     2244(a) of title 28, United States Code, is amended by 
     striking ``and the petition'' and all that follows through 
     ``by such inquiry.'' and inserting ``except as provided in 
     section 2255.''.
       (3) Limitations on second or successive petitions.--Section 
     2244(b) of title 28, United States Code, is amended to read 
     as follows:
       ``(b)(1) A claim presented in a second or successive habeas 
     corpus petition that was 
      [[Page S85]] not presented in a prior petition shall be 
     dismissed unless--
       ``(A) the petitioner shows that--
       ``(i) the claim relies on a new rule of constitutional law, 
     made retroactive by the Supreme Court, that was previously 
     unavailable; or
       ``(ii) the factual predicate for the claim could not have 
     been discovered previously through the exercise of due 
     diligence; and
       ``(B) the facts underlying the claim, if proven and viewed 
     in light of the evidence as a whole, would be sufficient to 
     undermine the court's confidence in the factfinder's 
     determination of the applicant's guilt of the offense or 
     offenses for which the sentence was imposed.
       ``(2)(A) Before a second or successive petition is filed in 
     the district court, the petitioner must move in the 
     appropriate court of appeals for an order authorizing the 
     district court to consider the petition.
       ``(B) A motion in the court of appeals for an order 
     authorizing the district court to consider a successive 
     petition shall be determined by a three-judge panel of the 
     court of appeals.
       ``(C) The court of appeals may authorize the filing of a 
     successive petition only if it determines that the petitioner 
     has made a prima facie showing that the petition satisfies 
     the requirements of this section.
       ``(D) The grant or denial of an authorization by the court 
     of appeals to file a second or successive petition shall not 
     be appealable.
       ``(3) A district court shall dismiss any claim presented in 
     a second or successive petition that the court of appeals has 
     authorized to be filed unless the applicant shows that the 
     claim satisfies the requirements of this section.''.

     SEC. 509. TECHNICAL AMENDMENT.

       Section 848(q) of title 21, United States Code, is amended 
     by striking all references to section 2254.

     SEC. 510. DEATH PENALTY LITIGATION PROCEDURES.

       (a) Addition of Chapter.--Title 28, United States Code, is 
     amended by inserting after chapter 153 the following new 
     chapter:

    ``CHAPTER 154--SPECIAL HABEAS CORPUS PROCEDURES IN CAPITAL CASES
``Sec.
``2256. Prisoners in State custody subject to capital sentence; 
              appointment of counsel; requirement of rule of court or 
              statute; procedures for appointment.
``2257. Mandatory stay of execution; duration; limits on stays of 
              execution; successive petitions.
``2258. Filing of habeas corpus petition; time requirements; tolling 
              rules.
``2259. Evidentiary hearings; scope of Federal review; district court 
              adjudication.
``2260. Certificate of probable cause inapplicable.
``2261. Application to state unitary review procedures.
``2262. Limitation periods for determining petitions.
``2263. Rule of construction.
     ``Sec. 2256. Prisoners in State custody subject to capital 
       sentence; appointment of counsel; requirement of rule of 
       court or statute; procedures for appointment

       ``(a) Application of Chapter.--This chapter shall apply to 
     cases arising under section 2254 brought by prisoners in 
     State custody who are subject to a capital sentence. It shall 
     apply only if the provisions of subsections (b) and (c) are 
     satisfied.
       ``(b) Establishment of Appointment Mechanism.--This chapter 
     is applicable if a State establishes by rule of its court of 
     last resort or by statute a mechanism for the appointment, 
     compensation and payment of reasonable litigation expenses of 
     competent counsel in State postconviction proceedings brought 
     by indigent prisoners whose capital convictions and sentences 
     have been upheld on direct appeal to the court of last resort 
     in the State or have otherwise become final for State law 
     purposes. The rule of court or statute must provide standards 
     of competency for the appointment of such counsel.
       ``(c) Offer of Counsel.--Any mechanism for the appointment, 
     compensation and reimbursement of counsel as provided in 
     subsection (b) must offer counsel to all State prisoners 
     under capital sentence and must provide for the entry of an 
     order by a court of record--
       ``(1) appointing 1 or more counsel to represent the 
     prisoner upon a finding that the prisoner is indigent and 
     accepted the offer or is unable competently to decide whether 
     to accept or reject the offer;
       ``(2) finding, after a hearing if necessary, that the 
     prisoner rejected the offer of counsel and made the decision 
     with an understanding of its legal consequences; or
       ``(3) denying the appointment of counsel upon a finding 
     that the prisoner is not indigent.
       ``(d) Previous Representation.--No counsel appointed 
     pursuant to subsections (b) and (c) to represent a State 
     prisoner under capital sentence shall have previously 
     represented the prisoner at trial or on direct appeal in the 
     case for which the appointment is made unless the prisoner 
     and counsel expressly request continued representation.
       ``(e) No Ground for Relief.--The ineffectiveness or 
     incompetence of counsel during Federal or State collateral 
     postconviction proceedings in a capital case shall not be a 
     ground for relief in a proceeding arising under section 2254. 
     This limitation shall not preclude the appointment of 
     different counsel, on the court's own motion or at the 
     request of the prisoner, at any phase of State or Federal 
     postconviction proceedings on the basis of the 
     ineffectiveness or incompetence of counsel in such 
     proceedings.

     ``Sec. 2257. Mandatory stay of execution; duration; limits on 
       stays of execution; successive petitions

       ``(a) Stay.--Upon the entry in the appropriate State court 
     of record of an order under section 2256(c), a warrant or 
     order setting an execution date for a State prisoner shall be 
     stayed upon application to any court that would have 
     jurisdiction over any proceedings filed under section 2254. 
     The application must recite that the State has invoked the 
     postconviction review procedures of this chapter and that the 
     scheduled execution is subject to stay.
       ``(b) Expiration of Stay.--A stay of execution granted 
     pursuant to subsection (a) shall expire if--
       ``(1) a State prisoner fails to file a habeas corpus 
     petition under section 2254 within the time required in 
     section 2258, or fails to make a timely application for court 
     of appeals review following the denial of such a petition by 
     a district court;
       ``(2) upon completion of district court and court of 
     appeals review under section 2254 the petition for relief is 
     denied and--
       ``(A) the time for filing a petition for certiorari has 
     expired and no petition has been filed;
       ``(B) a timely petition for certiorari was filed and the 
     Supreme Court denied the petition; or
       ``(C) a timely petition for certiorari was filed and upon 
     consideration of the case, the Supreme Court disposed of it 
     in a manner that left the capital sentence undisturbed; or
       ``(3) before a court of competent jurisdiction, in the 
     presence of counsel and after having been advised of the 
     consequences of his decision, a State prisoner under capital 
     sentence waives the right to pursue habeas corpus review 
     under section 2254.
       ``(c) Limitation on Further Stay.--If one of the conditions 
     in subsection (b) has occurred, no Federal court thereafter 
     shall have the authority to enter a stay of execution or 
     grant relief in a capital case unless--
       ``(1) the basis for the stay and request for relief is a 
     claim not previously presented in the State or Federal 
     courts;
       ``(2) the failure to raise the claim is--
       ``(A) the result of State action in violation of the 
     Constitution or laws of the United States;
       ``(B) the result of the Supreme Court recognition of a new 
     Federal right that is made retroactively applicable; or
       ``(C) based on a factual predicate that could not have been 
     discovered through the exercise of due diligence in time to 
     present the claim for State or Federal postconviction review;
       ``(3) the facts underlying the claim if proven and viewed 
     in light of the evidence as a whole, would be sufficient to 
     establish by clear and convincing evidence that but for 
     constitutional error, no reasonable factfinder would have 
     found the petitioner guilty of the underlying offense or 
     eligible for the death penalty under State law;
       ``(4) the court of appeals approves the filing of a second 
     or successive petition that--
       ``(A) is the result of the Supreme Court recognition of a 
     new Federal right that is made retroactively applicable; or
       ``(B) is based on a factual predicate that could not have 
     been discovered through the exercise of due diligence in time 
     to present the claim for State or Federal postconviction 
     review; and
       ``(5) the facts underlying the claim if proven and viewed 
     in light of the evidence as a whole, would be sufficient to 
     establish by clear and convincing evidence that but for 
     constitutional error, no reasonable factfinder would have 
     found the petitioner guilty of the underlying offense or 
     eligible for the death penalty under State law.

     ``Sec. 2258. Filing of habeas corpus petition; time 
       requirements; tolling rules

       ``(a) Filing.--A petition for habeas corpus relief under 
     section 2254 must be filed in the appropriate district court 
     within 180 days from the filing in the appropriate State 
     court of record of an order under section 2256(c).
       ``(b) Tolling.--The time requirements established by this 
     section shall be tolled--
       ``(1) from the date that a petition for certiorari is filed 
     in the Supreme Court until the date of final disposition of 
     the petition if a State prisoner files the petition to secure 
     review by the Supreme Court of the affirmance of a capital 
     sentence on direct review by the court of last resort of the 
     State or other final State court decision on direct review;
       ``(2) during any period in which a State prisoner under 
     capital sentence has a properly filed request for 
     postconviction review pending before a State court of 
     competent jurisdiction; if all State filing rules are met in 
     a timely manner, this period shall run continuously from the 
     date that the State prisoner initially files for 
     postconviction review until final disposition of the case by 
     the highest court of the State, but the time requirements 
     established by this section are not tolled during the 
     pendency of a petition for certiorari before the Supreme 
     Court except as provided in paragraph (1); and
       ``(3) during an additional period not to exceed 30 days, 
     if--
     [[Page S86]]   ``(A) a motion for an extension of time is 
     filed in the Federal district court that would have proper 
     jurisdiction over the case upon the filing of a habeas corpus 
     petition under section 2254; and
       ``(B) a showing of good cause is made for the failure to 
     file the habeas corpus petition within the time period 
     established by this section.
     ``Sec. 2259. Evidentiary hearings; scope of Federal review; 
       district court adjudication

       ``(a) Review of Record; Hearing.--Whenever a State prisoner 
     under a capital sentence files a petition for habeas corpus 
     relief to which this chapter applies, the district court 
     shall, within the time limits required by section 2267--
       ``(1) determine the sufficiency of the record for habeas 
     corpus review based on the claims actually presented and 
     litigated in the State courts except when the prisoner can 
     show that the failure to raise or develop a claim in the 
     State courts is--
       ``(A) the result of State action in violation of the 
     Constitution or laws of the United States;
       ``(B) the result of the Supreme Court recognition of a new 
     Federal right that is made retroactively applicable; or
       ``(C) based on a factual predicate that could not have been 
     discovered through the exercise of due diligence in time to 
     present the claim for State postconviction review; and
       ``(2) conduct any requested evidentiary hearing necessary 
     to complete the record for habeas corpus review.
       ``(b) Adjudication.--Upon the development of a complete 
     evidentiary record, the district court shall rule on the 
     claims that are properly before it, but the court shall not 
     grant relief from a judgment of conviction or sentence on the 
     basis of any claim that was fully and fairly adjudicated in 
     State proceedings.

     ``Sec. 2260. Certificate of probable cause inapplicable

       ``The requirement of a certificate of probable cause in 
     order to appeal from the district court to the court of 
     appeals does not apply to habeas corpus cases subject to this 
     chapter except when a second or successive petition is filed.

     ``Sec. 2261. Application to State unitary review procedure

       ``(a) In General.--
       ``(1) Definition.--For purposes of this section, the term 
     `unitary review procedure' means a State procedure that 
     authorizes a person under sentence of death to raise, in the 
     course of direct review of the judgment, such claims as could 
     be raised on collateral attack.
       ``(2) Application of chapter.--This chapter shall apply, as 
     provided in this section, in relation to a State unitary 
     review procedure if the State establishes by rule of its 
     court of last resort or by statute a mechanism for the 
     appointment, compensation, and payment of reasonable 
     litigation expenses of competent counsel in the unitary 
     review proceedings, including expenses relating to the 
     litigation of collateral claims in the proceedings.
       ``(3) Standards of competency.--A rule of court or statute 
     described in paragraph (2) must provide standards of 
     competency for the appointment of counsel.
       ``(b) Offer of Counsel.--
       ``(1) In general.--To qualify under this section, a unitary 
     review procedure, to qualify under this section, must include 
     an offer of counsel following trial for the purpose of 
     representation on unitary review, and entry of an order, as 
     provided in section 2256(c), concerning appointment of 
     counsel or waiver or denial of appointment of counsel for 
     that purpose.
       ``(2) No previous representation.--No counsel appointed to 
     represent the prisoner in the unitary review proceedings 
     shall have previously represented the prisoner at trial in 
     the case for which the appointment is made unless the 
     prisoner and counsel expressly request continued 
     representation.
       ``(c) Application of Other Sections.--
       ``(1) In general.--Sections 2257, 2258, 2259, 2260, and 
     2262 shall apply in relation to cases involving a sentence of 
     death from any State having a unitary review procedure that 
     qualifies under this section.
       ``(2) References.--References to State `post-conviction 
     review' and `direct review' in those sections shall be 
     understood as referring to unitary review under the State 
     procedure. The references in sections 2257(a) and 2258 to `an 
     order under section 2256(c)' shall be understood as referring 
     to the post-trial order under subsection (b) concerning 
     representation in the unitary review proceedings, but if a 
     transcript of the trial proceedings is unavailable at the 
     time of the filing of such an order in the appropriate State 
     court, the start of the 180-day limitation period under 
     section 2258 shall be deferred until a transcript is made 
     available to the prisoner or the prisoner's counsel.
     ``Sec. 2262. Limitation periods for determining petitions

       ``(a) In General.--The adjudication of any petition under 
     section 2254 that is subject to this chapter, and the 
     adjudication of any motion under section 2255 by a person 
     under sentence of death, shall be given priority by the 
     district court and by the court of appeals over all 
     noncapital matters.
       ``(b) Time Limitations for Consideration by the District 
     Courts of Habeas Corpus Petitions in Capital Cases.--
       ``(1) In general.--
       ``(A) Final determination within 180 days.--Except to the 
     extent that a longer period of time is required in order that 
     each of the parties will have been accorded at least as many 
     days as provided in the rules in which to complete all 
     actions, including preparation of briefs and, if necessary, a 
     hearing prior to the submission of the case for decision, a 
     district court shall render a final determination of any 
     petition for a writ of habeas corpus brought under this 
     chapter in a capital case not later than 180 days after the 
     date on which the petition is filed.
       ``(B) Delay.--(i) A district court may delay for not more 
     than one additional 180-day period beyond the period 
     specified in subparagraph (A), the rendering of a 
     determination of a petition for a writ of habeas corpus if 
     the court issues a written order making a finding, and 
     stating the reasons for the finding, that the ends of justice 
     that would be served by allowing the delay outweigh the best 
     interests of the public and the petitioner in a speedy 
     disposition of the petition.
       ``(ii) The factors, among others, that a court shall 
     consider in determining whether a delay in the disposition of 
     a petition is warranted are as follows:
       ``(I) Whether the failure to allow the delay would be 
     likely to result in a miscarriage of justice.
       ``(II) Whether the case is so unusual or so complex, due to 
     the number of defendants, the nature of the prosecution, or 
     the existence of novel questions of fact or law, that it is 
     unreasonable to expect adequate briefing within the time 
     limit established by subparagraph (A).
       ``(III) Whether the failure to allow a delay in a case, 
     that taken as a whole, is not so unusual or so complex as 
     described in clause (ii), would deny the petitioner 
     reasonable time to obtain counsel, would unreasonably deny 
     the petitioner or the government continuity of counsel, or 
     would deny counsel for the petitioner or the government the 
     reasonable time necessary for effective preparation, taking 
     into account the exercise of due diligence.
       ``(iii) No delay in disposition shall be permissible 
     because of general congestion of the court's calendar.
       ``(iv) The court shall transmit a copy of any order issued 
     under clause (i) to the Director of the Administrative Office 
     of the United States Courts for inclusion in the report under 
     paragraph (5).
       ``(2) Application.--The time limitations under paragraph 
     (1) shall apply to--
       ``(A) an initial petition for a writ of habeas corpus;
       ``(B) any second or successive petition for a writ of 
     habeas corpus; and
       ``(C) any redetermination of a petition for a writ of 
     habeas corpus following a remand by the court of appeals or 
     the Supreme Court for further proceedings, in which case the 
     limitation period shall run from the date the remand is 
     ordered.
       ``(3) Rule of construction.--The time limitations under 
     this section shall not be construed to entitle a petitioner 
     to a stay of execution, to which the petitioner would 
     otherwise not be entitled, for the purpose of litigating any 
     petition or appeal.
       ``(4) Failure to render timely determination.--
       ``(A) No ground for relief.--The failure of a court to meet 
     or comply with a time limitation under this section shall not 
     be a ground for granting relief from a judgment of conviction 
     or sentence.
       ``(B) Enforcement.--The government may enforce a time 
     limitation under this section by petitioning for a writ of 
     mandamus to the court of appeals. The Court of Appeals shall 
     act on the petition for a writ or mandamus not later than 30 
     days after the filing of the petition.
       ``(5) Report.--
       ``(A) In general.--The Administrative Office of United 
     States Courts shall submit to Congress an annual report on 
     the compliance by the district courts with the time 
     limitations under this section.
       ``(B) Contents.--The report described in subparagraph (A) 
     shall include copies of the orders submitted by the district 
     courts under paragraph (1)(B)(iv).
       ``(c) Time Limitations for Consideration of District Court 
     Determinations of Habeas Corpus Petitions in Capital Cases.--
       ``(1) In general.--
       ``(A) Final determination within 120 days.--A court of 
     appeals shall hear and render a final determination of any 
     appeal of an order granting or denying, in whole or in part, 
     a petition brought under this chapter in a capital case not 
     later than 120 days after the date on which the reply brief 
     is filed, or if no reply brief is filed, not later than 120 
     days after the date on which the answering brief is filed.
       ``(B) Hearing en banc.--(i) A court of appeals shall decide 
     whether to grant a petition for rehearing or other request 
     for rehearing en banc not later than 30 days after the date 
     on which the petition for rehearing is filed unless a 
     responsive pleading is required, in which case the court 
     shall decide whether to grant the petition not later than 30 
     days after the date on which the responsive pleading is 
     filed.
       ``(ii) If a petition for rehearing or rehearing en banc is 
     granted, the court of appeals shall hear and render a final 
     determination of the appeal not later than 120 days after the 
     date on which the order granting rehearing or rehearing en 
     banc is entered.
       ``(2) Application.--The time limitations under paragraph 
     (1) shall apply to--
       ``(A) an initial petition for a writ of habeas corpus;
     [[Page S87]]   ``(B) any second or successive petition for a 
     writ of habeas corpus; and
       ``(C) any redetermination of a petition for a writ of 
     habeas corpus or related appeal following a remand by the 
     court of appeals or the Supreme Court for further 
     proceedings, in which case the limitation period shall run 
     from the date the remand is ordered.
       ``(3) Rule of construction.--The time limitations under 
     this section shall not be construed to entitle a petitioner 
     to a stay of execution, to which the petitioner would 
     otherwise not be entitled, for the purpose of litigating any 
     petition or appeal.
       ``(4) Failure to render timely determination.--
       ``(A) No ground for relief.--The failure of a court to meet 
     or comply with a time limitation under this section shall not 
     be a ground for granting relief from a judgment of conviction 
     or sentence.
       ``(B) Enforcement.--The government may enforce a time 
     limitation under this section by applying for a writ of 
     mandamus to the Supreme Court.
       ``(5) Report.--The Administrative Office of United States 
     Courts shall submit to Congress an annual report on the 
     compliance by the district courts and courts of appeals with 
     the time limitations under this section.''.
       (b) Technical Amendment.--The part analysis for part IV of 
     title 28, United States Code, is amended by adding after the 
     item relating to chapter 153 the following new item:

``154. Special habeas corpus procedures in capital cases...2261.''.....

                   TITLE VI--PREVENTION OF TERRORISM

     SEC. 601. WILLFUL VIOLATION OF FEDERAL AVIATION 
                   ADMINISTRATION REGULATIONS.

       (a) In General.--Chapter 2 of title 18, United States Code, 
     as amended by section 60021(a) of the Violent Crime Control 
     and Safe Streets Act of 1968, is amended by adding at the end 
     the following new section:

     ``Sec. 38. Violations of Federal aviation security 
       regulations

       ``A person who willfully violates a security regulation 
     under part 107 or 108 of title 14, Code of Federal 
     Regulations (relating to airport and airline security) issued 
     pursuant to section 44901 or 44903 of title 49, United States 
     Code, or a successor part, shall be fined under this title, 
     imprisoned not more than 1 year, or both.''.
       (b) Technical Amendment.--The chapter analysis for chapter 
     2 of title 18, United States Code, as amended by section 
     719(b), is amended by adding at the end the following new 
     item:

``38. Violations of Federal aviation security regulations.''.

     SEC. 602. ASSAULTS, MURDERS, AND THREATS AGAINST FORMER 
                   FEDERAL OFFICIALS IN PERFORMANCE OF OFFICIAL 
                   DUTIES.

       Section 115(a)(2) of title 18, United States Code, is 
     amended by inserting ``, or threatens to assault, kidnap, or 
     murder, any person who formerly served as a person designated 
     in paragraph (1), or'' after ``assaults, kidnaps, or murders, 
     or attempts to kidnap or murder''.

     SEC. 603. WIRETAP AUTHORITY FOR ALIEN SMUGGLING AND RELATED 
                   OFFENSES AND INCLUSION OF ALIEN SMUGGLING AS A 
                   RICO PREDICATE.

       (a) In General.--Section 2516(1) of title 18, United States 
     Code, is amended--
       (1) in paragraph (c) by inserting after ``section 175 
     (relating to biological weapons),'' the following: ``or a 
     felony violation under section 1028 (relating to production 
     of false identification documentation), section 1542 
     (relating to false statements in passport applications), 
     section 1546 (relating to fraud and misuse of visas, permits, 
     and other documents),'';
       (2) by redesignating paragraphs (m), (n), and (o) as 
     paragraphs (n), (o), and (p), respectively; and
       (3) by inserting after paragraph (l) the following new 
     paragraph:
       ``(m) a violation of (i) section 274 of the Immigration and 
     Nationality Act (8 U.S.C. 1324) (relating to alien 
     smuggling), (ii) section 277 of the Immigration and 
     Nationality Act (8 U.S.C. 1327) (relating to the smuggling of 
     aliens convicted of aggravated felonies or of aliens subject 
     to exclusion on grounds of national security), or (iii) 
     section 278 of the Immigration and Nationality Act (8 U.S.C. 
     1328) (relating to smuggling of aliens for the purpose of 
     prostitution);''.
       (b) Definition of Racketeering.--Section 1961(1) of title 
     18, United States Code, is amended--
       (1) by striking ``or'' before ``(E) any Act''; and
       (2) by inserting after ``Currency and Foreign Transactions 
     Reporting Act'' the following: ``, or (F) any act (or 
     conspiracy to commit any act) which is indictable under 
     section 274(a) (1) of the Immigration and Nationality Act (8 
     U.S.C. 1324(a) (1)) (dealing with prohibitions on bringing in 
     and harboring certain aliens)''.

     SEC. 604. AUTHORIZATION FOR INTERCEPTIONS OF COMMUNICATIONS 
                   IN CERTAIN TERRORISM-RELATED OFFENSES.

       Section 2516(1)(c) of title 18, United States Code, as 
     amended by section 703, is further amended--
       (1) in subsection (c), by inserting before ``or section 
     1992 (relating to wrecking trains)'' the following: ``section 
     2332 (relating to terrorist acts abroad), section 2332a 
     (relating to weapons of mass destruction), section 2339A 
     (relating to providing material support to terrorists), 
     section 37 (relating to violence at airports),''; and
       (2) by redesignating subparagraph (p) as subparagraph (q) 
     and adding the following new subparagraph (p):
       ``(p) any violation of section 956 or section 960 of title 
     18, United States Code (relating to certain actions against 
     foreign nations);''.

     SEC. 605. PARTICIPATION OF FOREIGN AND STATE GOVERNMENT 
                   PERSONNEL IN INTERCEPTIONS OF COMMUNICATIONS.

       Section 2518(5) of title 18, United States Code, is amended 
     by inserting ``(including personnel of a foreign government 
     or of a State or subdivision of a State)'' after ``Government 
     personnel''.

     SEC. 606. DISCLOSURE OF INTERCEPTED COMMUNICATIONS TO FOREIGN 
                   LAW ENFORCEMENT AGENCIES.

       Section 2510(7) of title 18, United States Code, is amended 
     by inserting before the semicolon the following: ``and, for 
     purposes of section 2517(1)-(2), any person authorized to 
     perform investigative, law enforcement, or prosecutorial 
     functions by a foreign government''.

     SEC. 607. ALIEN TERRORIST REMOVAL.

       The Immigration and Nationality Act (8 U.S.C. 1101 et seq.) 
     is amended by inserting the following new section:


                     ``removal of alien terrorists

       ``Sec. 242C. (a) Definitions.--As used in this section--
       ``(1) the term `alien terrorist' means any alien described 
     in section 241(a)(4)(B);
       ``(2) the term `classified information' has the same 
     meaning as defined in section 1(a) of the Classified 
     Information Procedures Act (18 U.S.C. App. IV);
       ``(3) the term `national security' has the same meaning as 
     defined in section 1(b) of the Classified Information 
     Procedures Act (18 U.S.C. App. IV);
       ``(4) the term `special court' means the court described in 
     subsection (c) of this section; and
       ``(5) the `special removal hearing' means the hearing 
     described in subsection (e) of this section.
       ``(b) Application for Use of Procedures.--The provisions of 
     this section shall apply whenever the Attorney General 
     certifies under seal to the special court that--
       ``(1) the Attorney General or Deputy Attorney General has 
     approved of the proceeding under this section;
       ``(2) an alien terrorist is physically present in the 
     United States; and
       ``(3) removal of such alien terrorist by deportation 
     proceedings described in sections 242, 242A, or 242B would 
     pose a risk to the national security of the United States 
     because such proceedings would disclose classified 
     information.
       ``(c) Special Court.--(1) The Chief Justice of the United 
     States shall publicly designate up to 7 judges from up to 7 
     United States judicial districts to hear and decide cases 
     arising under this section, in a manner consistent with the 
     designation of judges described in section 103(a) of the 
     Foreign Intelligence Surveillance Act (50 U.S.C. 1803(a)).
       ``(2) The Chief Justice may, in the Chief Justice's 
     discretion, designate the same judges under this section as 
     are designated pursuant to section 1803(a) of title 50, 
     United States Code.
       ``(d) Invocation of Special Court Procedure.--(1) When the 
     Attorney General makes the application described in 
     subsection (b), a single judge of the special court shall 
     consider the application in camera and ex parte.
       ``(2) The judge shall invoke the procedures of subsection 
     (e), if the judge determines that there is probable cause to 
     believe that--
       ``(A) the alien who is the subject of the application has 
     been correctly identified;
       ``(B) a deportation proceeding described in section 242, 
     242A, or 242B would pose a risk to the national security of 
     the United States because such proceedings would disclose 
     classified information; and
       ``(C) the threat posed by the alien's physical presence is 
     immediate and involves the risk of death or serious bodily 
     harm.
       ``(e) Special Removal Hearing.--(1) Except as provided in 
     paragraph (4), the special removal hearing authorized by a 
     showing of probable cause described in subsection (d)(2) 
     shall be open to the public.
       ``(2) The alien shall have a right to be present at such 
     hearing and to be represented by counsel. Any alien 
     financially unable to obtain counsel shall be entitled to 
     have counsel assigned to represent such alien. Counsel may be 
     appointed as described in section 3006A of title 18, United 
     States Code.
       ``(3) The alien shall have a right to introduce evidence on 
     his own behalf, and except as provided in paragraph (4), 
     shall have a right to cross-examine any witness or request 
     that the judge issue a subpoena for the presence of a named 
     witness.
       ``(4) The judge shall authorize the introduction in camera 
     and ex parte of any item of evidence for which the judge 
     determines that public disclosure would pose a risk to the 
     national security of the United States because it would 
     disclose classified information.
       ``(5) With respect to any evidence described in paragraph 
     (4), the judge shall cause to be delivered to the alien 
     either--
       ``(A)(i) the substitution for such evidence of a statement 
     admitting relevant facts that the specific evidence would 
     tend to prove, or (ii) the substitution for such evidence of 
     a summary of the specific evidence; or
       ``(B) if disclosure of even the substituted evidence 
     described in subparagraph (A) 
      [[Page S88]] would create a substantial risk of death or 
     serious bodily harm to any person, a statement informing the 
     alien that no such summary is possible.
       ``(6) If the judge determines--
       ``(A) that the substituted evidence described in paragraph 
     (4)(B) will provide the alien with substantially the same 
     ability to make his defense as would disclosure of the 
     specific evidence, or
       ``(B) that disclosure of even the substituted evidence 
     described in paragraph (5)(A) would create a substantial risk 
     of death or serious bodily harm to any person,

     then the determination of deportation (described in 
     subsection (f)) may be made pursuant to this section.
       ``(f) Determination of Deportation.--(1) If the 
     determination in subsection (e)(6)(A) has been made, the 
     judge shall, considering the evidence on the record as a 
     whole, require that the alien be deported if the Attorney 
     General proves, by clear and convincing evidence, that the 
     alien is subject to deportation because he is an alien as 
     described in section 241(a)(4)(B).
       ``(2) If the determination in subsection (e)(6)(B) has been 
     made, the judge shall, considering the evidence received (in 
     camera and otherwise), require that the alien be deported if 
     the Attorney General proves, by clear, convincing, and 
     unequivocal evidence, that the alien is subject to 
     deportation because he is an alien as described in section 
     241(a)(4)(B).
       ``(g) Appeals.--(1) The alien may appeal a determination 
     under subsection (f) to the court of appeals for the Federal 
     Circuit, by filing a notice of appeal with such court within 
     20 days of the determination under such subsection.
       ``(2) The Attorney General may appeal a determination under 
     subsection (d), (e), or (f) to the court of appeals for the 
     Federal Circuit, by filing a notice of appeal with such court 
     within 20 days of the determination under any one of such 
     subsections.
       ``(3) When requested by the Attorney General, the entire 
     record of the proceeding under this section shall be 
     transmitted to the court of appeals under seal. The court of 
     appeals shall consider such appeal in camera and ex parte.''.

     SEC. 608. TERRITORIAL SEA.

       (a) Territorial Sea Extending to Twelve Miles Included in 
     Special Maritime and Territorial Jurisdiction.--The Congress 
     declares that all the territorial sea of the United States, 
     as defined by Presidential Proclamation 5928 of December 27, 
     1988, is part of the United States, subject to its 
     sovereignty, and, for purposes of Federal criminal 
     jurisdiction, is within the special maritime and territorial 
     jurisdiction of the United States wherever that term is used 
     in title 18, United States Code.
       (b) Assimilated Crimes in Extended Territorial Sea.--
     Section 13 of title 18, United States Code (relating to the 
     adoption of State laws for areas within Federal 
     jurisdiction), is amended--
       (1) in subsection (a), by inserting after ``title'' the 
     following: ``or on, above, or below any portion of the 
     territorial sea of the United States not within the territory 
     of any State, Territory, Possession, or District''; and
       (2) by adding at the end the following new subsection:
       ``(c) Whenever any waters of the territorial sea of the 
     United States lie outside the territory of any State, 
     Territory, Possession, or District, such waters (including 
     the airspace above and the seabed and subsoil below, and 
     artificial islands and fixed structures erected thereon) 
     shall be deemed for purposes of subsection (a) to lie within 
     the area of that State, Territory, Possession, or District it 
     would lie within if the boundaries of such State, Territory, 
     Possession, or District were extended seaward to the outer 
     limit of the territorial sea of the United States.''.

     SEC. 609. CLARIFICATION AND EXTENSION OF CRIMINAL 
                   JURISDICTION OVER CERTAIN TERRORISM OFFENSES 
                   OVERSEAS.

       (a) Section 46502(b) of title 49, United States Code is 
     amended--
       (1) in paragraph (b)(1), by striking ``, and later found in 
     the United States'';
       (2) by amending paragraph (b)(2) to read as follows:
       ``(2) The courts of the United States shall have 
     jurisdiction over the offense in paragraph (1) if--
       ``(A) a national of the United States was aboard the 
     aircraft at the time of the offense;
       ``(B) an offender is a national of the United States; or
       ``(C) an offender is later found in the United States.''; 
     and
       (3) by adding at the end the following new paragraph:
       ``(3) For purposes of this subsection, the term `national 
     of the United States' has the meaning prescribed in section 
     101(a)(22) of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(22)).''.
       (b) Section 32(b) of title 18, United States Code, is 
     amended--
       (1) by striking ``, if the offender is later found in the 
     United States,''; and
       (2) by adding at the end the following new paragraphs:
       ``(5) The courts of the United States shall have 
     jurisdiction over an offense in this subsection if--
       ``(A) a national of the United States was on board, or 
     would have been on board, the aircraft at the time of the 
     offense;
       ``(B) an offender is a national of the United States; or
       ``(C) an offender is afterwards found in the United States.
       ``(6) For purposes of this subsection, the term `national 
     of the United States' has the meaning prescribed in section 
     101(a)(22) of the Immigration and Nationality Act (8 U.S.C. 
     1101(a) (22)).''.
       (c) Section 1116 of title 18, United States Code, is 
     amended--
       (1) in subsection (b), by adding at the end the following 
     new paragraph:
       ``(7) `national of the United States' has the meaning 
     prescribed in section 101(a)(22) of the Immigration and 
     Nationality Act (8 U.S.C. 1101(a)(22)).''; and
       (2) in subsection (c), by striking the first sentence and 
     inserting the following:
       ``If the victim of an offense under subsection (a) is an 
     internationally protected person outside the United States, 
     the United States may exercise jurisdiction over the offense 
     if (1) the victim is a representative, officer, employee, or 
     agent of the United States, (2) an offender is a national of 
     the United States, or (3) an offender is afterwards found in 
     the United States.''.
       (d) Section 112 of title 18, United States Code, is 
     amended--
       (1) in subsection (c), by inserting ``, `national of the 
     United States,''' before ``and''; and
       (2) in subsection (e), by striking the first sentence and 
     inserting the following:
       ``If the victim of an offense under subsection (a) is an 
     internationally protected person outside the United States, 
     the United States may exercise jurisdiction over the offense 
     if (1) the victim is a representative, officer, employee, or 
     agent of the United States, (2) an offender is a national of 
     the United States, or (3) an offender is afterwards found in 
     the United States.''.
       (e) Section 878 of title 18, United States Code, is 
     amended--
       (1) in subsection (c), by inserting ``, `national of the 
     United States,''' before ``and''; and
       (2) in subsection (d), by striking the first sentence and 
     inserting the following:
       ``If the victim of an offense under subsection (a) is an 
     internationally protected person outside the United States, 
     the United States may exercise jurisdiction over the offense 
     if (1) the victim is a representative, officer, employee, or 
     agent of the United States, (2) an offender is a national of 
     the United States, or (3) an offender is afterwards found in 
     the United States.''.
       (f) Section 1201(e) of title 18, United States Code, is 
     amended--
       (1) by striking the first sentence and inserting the 
     following:
       ``If the victim of an offense under subsection (a) is an 
     internationally protected person outside the United States, 
     the United States may exercise jurisdiction over the offense 
     if (1) the victim is a representative, officer, employee, or 
     agent of the United States, (2) an offender is a national of 
     the United States, or (3) an offender is afterwards found in 
     the United States.''; and
       (2) by adding at the end the following:
       ``For purposes of this subsection, the term `national of 
     the United States' has the meaning prescribed in section 
     101(a) (22) of the Immigration and .`Nationality Act (8 
     U.S.C. 1101(a) (22)).''.
       (g) Section 37(b)(2) of title 18, United States Code, is 
     amended--
       (1) by inserting ``(A)'' before ``the offender is later 
     found in the States''; and
       (2) by inserting ``or (B) an offender or a victim is a 
     national of the United States (as defined in section 
     101(a)(22) of the Immigration and Nationality Act, 8 U.S.C. 
     1101(a)(22))'' after ``the offender is later found in the 
     United States''.
       (h) Section 831(c)(2) of title 18, United States Code, is 
     amended by striking ``the defendant is a national of the 
     United States, as defined'' and inserting ``an offender or a 
     victim is a national of the United States, as defined''.
       (i) Section 175(a) of title 18, United States Code, is 
     amended by inserting ``(as defined in section 101(a)(22) of 
     the Immigration and Nationality Act, 8 U.S.C. 1101(a)(22))'' 
     after ``national of the United States''.

     SEC. 610. FEDERAL AVIATION ADMINISTRATION REPORTING 
                   RESPONSIBILITY.

       (a) In General.--Chapter 449 of title 49, United States 
     Code, is amended by inserting after section 44901 the 
     following new section:

     ``Sec. 44901A. Discoveries of controlled substances or cash 
       in excess of $10,000

       ``Not later than 90 days after the date of the enactment of 
     this section, the Administrator shall issue regulations 
     requiring employees and agents referred to in subsection (a) 
     to report to appropriate Federal and State law enforcement 
     officers any incident in which the employee or agent, in the 
     course of conducting screening procedures pursuant to 
     subsection (a), discovers a controlled substance the 
     possession of which may be a violation of Federal or State 
     law, or any sizable sums of cash in excess of $10,000 the 
     possession of which may be a violation of Federal or State 
     law.''.
       (b) Technical Amendment.--The analysis for chapter 449 of 
     title 49, United States Code, is amended by inserting after 
     the item relating to section 44901 the following new item:

``44901A. Discoveries of controlled substances or cash in excess of 
              $10,000.''.

     SEC. 611. INFORMATION TRANSFER.

       Section 245A(c)(5)(C) of the Immigration and Nationality 
     Act (8 U.S.C. 1255a(c)(5)(C)) 
      [[Page S89]] is amended by striking ``except that the 
     Attorney General'' and all that follows through ``section 8 
     of title 13, United States Code.'' and inserting ``except 
     that the Attorney General--
       ``(i) may authorize an application to a Federal court of 
     competent jurisdiction for, and a judge of such court may 
     grant, an order authorizing disclosure of information 
     contained in the application of the alien (as a result of an 
     investigation of the alien by an investigative officer or law 
     enforcement officer) that is necessary to locate and identify 
     the alien if--

       ``(I) such disclosure may result in the discovery of 
     information leading the location and identity of the alien; 
     and
       ``(II) such disclosure (and the information discovered as a 
     result of such disclosure) will be used only for criminal law 
     enforcement purposes as against the alien whose file is being 
     accessed;

       ``(ii) may furnish information under this section with 
     respect to an alien to an official coroner (upon the written 
     request of the coroner) for the purposes of permitting the 
     coroner to identify a deceased individual; and
       ``(iii) may provide, in the Attorney General's discretion, 
     for the furnishing of information furnished under this 
     section in the same manner and circumstances as census 
     information may be disclosed to the Secretary of Commerce 
     under section 8 of title 13, United States Code.''.

     SEC. 612. EXTRADITION.

       (a) Scope.--Section 3181 of title 18, United States Code, 
     is amended--
       (1) by inserting ``(a)'' before ``The provisions of this 
     chapter''; and
       (2) by adding at the end the following new subsections:
       ``(b) The provisions of this chapter shall be construed to 
     permit, in the exercise of comity, the surrender of persons, 
     other than citizens, nationals, or permanent residents of the 
     United States, who have committed crimes of violence against 
     nationals of the United States in foreign countries without 
     regard to the existence of any treaty of extradition with 
     such foreign government if the Attorney General certifies, in 
     writing, that--
       ``(1) evidence has been presented by the foreign government 
     that indicates that had the offenses been committed in the 
     United States, they would constitute crimes of violence as 
     defined under section 16 of this title; and
       ``(2) the offenses charged are not of a political nature.
       ``(c) As used in this section, the term `national of the 
     United States' has the meaning stated in section 101(a)(22) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(22)).''.
       (b) Fugitives.--Section 3184 of title 18, United States 
     Code, is amended--
       (1) in the first sentence by inserting after ``United 
     States and any foreign government,'' the following: ``or in 
     cases arising under section 3181(b),'';
       (2) in the first sentence by inserting after ``treaty or 
     convention,'' the following: ``or provided for under section 
     3181(b),''; and
       (3) in the third sentence by inserting after ``treaty or 
     convention,'' the following: ``or under section 3181(b),''.

     SEC. 613. FEDERAL BUREAU OF INVESTIGATION REPORT.

       Not later than January 31, 1997, the Director of the 
     Director of the Federal Bureau of Investigations shall report 
     to Congress on the effectiveness of section 2339A of title 
     18, United States Code (as added by section 120005(a) of the 
     Violent Crime Control and Law Enforcement Act of 1994). The 
     report shall include any recommendations of the Director for 
     changes in existing law that are needed to improve the 
     effectiveness of such section.

     SEC. 614. INCREASED PENALTIES FOR TERRORISM CRIMES.

       (a) Title 18, United States Code, is amended--
       (1) in section 114, by striking ``maim or disfigure'' and 
     inserting ``torture, maim, or disfigure''; and
       (2) in section 371, by striking ``$10,000 or imprisoned not 
     more than five years'' and inserting ``$10,000 in excess of 
     the monetary gain from the conspiracy, or imprisoned not more 
     than twenty years'';
       (3) in section 755--
       (A) by striking ``$2,000'' and inserting ``$5,000'';
       (B) by striking ``two years'' and inserting ``five years''; 
     and
       (C) by striking ``$500'' and inserting ``$1,000'';
       (4) in section 756, by striking ``$1,000 or imprisoned not 
     more than one year'' and inserting ``$5,000 or imprisoned not 
     more than five years'';
       (5) in section 878(a), by striking ``by killing, 
     kidnapping, or assaulting a foreign official, official guest, 
     or internationally protected person'';
       (6) in section 1113, by striking ``three years or fined'' 
     and inserting ``seven years'';
       (7) in section 1114, by inserting ``any member of the 
     United States Armed Forces who is engaged in noncombat 
     related official activities,'' after ``such marshal or deputy 
     marshal'';
       (8) in section 1116(a), by inserting ``or to death,'' after 
     ``imprisonment for life,''; and
       (9) in section 2332(c), by striking ``five'' and inserting 
     ``ten''.
       (b) Section 1472(l)(1) of title 49 App., United States Code 
     is amended by striking ``one'' and inserting ``ten''.

     SEC. 615. CRIMINAL OFFENSES COMMITTED OUTSIDE THE UNITED 
                   STATES BY PERSONS ACCOMPANYING THE ARMED 
                   FORCES.

       (a) Title 18, United States Code, is amended by inserting 
     after chapter 211 the following:

  ``CHAPTER 212--CRIMINAL OFFENSES COMMITTED OUTSIDE THE UNITED STATES

     ``Sec. 3261. Criminal offenses committed by persons formerly 
       serving with, or presently employed by or accompanying, the 
       Armed Forces outside the United States

       ``(a) Whoever, while serving with, employed by, or 
     accompanying the Armed Forces outside the United States, 
     engages in conduct which would constitute an offense 
     punishable by imprisonment for more than one year if the 
     conduct had been engaged in within the special maritime and 
     territorial jurisdiction of the United States, shall be 
     guilty of a like offense and subject to a like punishment.
       ``(b) Nothing contained in this chapter deprives courts-
     martial, military commissions, provost courts, or other 
     military tribunals of concurrent jurisdiction with respect of 
     offenders or offenses that by statute or by the law of war 
     may be tried by courts-martial, military commissions, provost 
     courts, or other military tribunals.
       ``(c) No prosecution may be commenced under this section if 
     a foreign government, in accordance with jurisdiction 
     recognized by the United States, has prosecuted or is 
     prosecuting such person for the conduct constituting such 
     offense, except upon the approval of the Attorney General of 
     the United States or the Deputy Attorney General of the 
     United States (or a person acting in either such capacity), 
     which function of approval may not be delegated.
       ``(d)(1) The Secretary of Defense may designate and 
     authorize any person serving in a law enforcement position in 
     the Department of Defense to arrest outside the United States 
     any person described in subsection (a) of this section who 
     there is probable cause to believe engaged in conduct which 
     constitutes a criminal offense under such section.
       ``(2) A person arrested under paragraph (1) of this section 
     shall be released to the custody of civilian law enforcement 
     authorities of the United States for removal to the United 
     States for judicial proceedings in relation to conduct 
     referred to in such paragraph unless--
       ``(A) such person is delivered to authorities of a foreign 
     country under section 3262 of this title; or
       ``(B) such person has had charges preferred against him 
     under chapter 47 of title 10 for such conduct.

     ``Sec. 3262. Delivery to authorities of foreign countries

       ``(a) Any person designated and authorized under section 
     3261(d) of this title may deliver a person described in 
     section 3261(a) of this title to the appropriate authorities 
     of a foreign country in which such person is alleged to have 
     engaged in conduct described in such subsection (a) of this 
     section if--
       ``(1) the appropriate authorities of that country request 
     the delivery of the person to such country for trial for such 
     conduct as an offense under the laws of that country; and
       ``(2) the delivery of such person to that country is 
     authorized by a treaty or other international agreement to 
     which the United States is a party.
       ``(b) The Secretary of Defense shall determine what 
     officials of a foreign country constitute appropriate 
     authorities for the purpose of this section.

     ``Sec. 3263. Regulations

       ``The Secretary of Defense shall issue regulations 
     governing the apprehension, detention, and removal of persons 
     under this chapter. Such regulations shall be uniform 
     throughout the Department of Defense.

     ``Sec. 3264. Definitions for chapter

       ``As used in this chapter--
       ``(1) a person is `employed by the armed forces outside the 
     United States' if he or she is employed as a civilian 
     employee of a military department, as a Department of Defense 
     contractor, or as an employee of a Department of Defense 
     contractor, is present or residing outside the United States 
     in connection with such employment, and is not a national of 
     the host nation.
       ``(2) a person is `accompanying the armed forces outside 
     the United States' if he or she is a dependent of a member of 
     the armed forces and is residing with the member outside the 
     United States.''.
       (b) The table of chapters at the beginning of part II of 
     title 18, United States Code, is amended by inserting after 
     the item relating to chapter 211 the following:

``212. Criminal Offenses Committed Outside the United States3261''.....
           TITLE VII--MISCELLANEOUS AND TECHNICAL PROVISIONS
              Subtitle A--Elimination of Certain Programs

     SEC. 701. ELIMINATION OF INEFFECTIVE PROGRAMS.

       Subtitles A through S and subtitles U and X of title III, 
     title V, and title XXVII of the Violent Crime Control and Law 
     Enforcement Act of 1994, and the amendments made thereby, are 
     repealed.
        Subtitle B--Amendments Relating to Violent Crime Control

     SEC. 711. VIOLENT CRIME AND DRUG EMERGENCY AREAS REPEAL.

       Section 90107 of the Violent Crime Control and Law 
     Enforcement Act of 1994 is repealed.
     [[Page S90]] SEC. 712. EXPANSION OF 18 U.S.C. 1959 TO COVER 
                   COMMISSION OF ALL VIOLENT CRIMES IN AID OF 
                   RACKETEERING ACTIVITY AND INCREASED PENALTIES.

       Section 1959(a) of title 18, United States Code, is 
     amended--
       (1) by inserting ``or commits any other crime of violence'' 
     before ``or threatens to commit a crime of violence 
     against'';
       (2) in paragraph (4) by inserting ``committing any other 
     crime of violence or for'' before ``threatening to commit a 
     crime of violence'', and by striking ``five'' and inserting 
     ``ten'';
       (3) in paragraph (5) by striking ``ten'' and inserting 
     ``twenty'';
       (4) in paragraph (6) by striking ``or'' before ``assault 
     resulting in serious bodily injury,'', by inserting ``or any 
     other crime of violence'' after those same words, and by 
     striking ``three'' and inserting ``ten''; and
       (5) by inserting ``(as defined in section 1365 of this 
     title)'' after ``serious bodily injury'' the first place it 
     appears.

     SEC. 713. AUTHORITY TO INVESTIGATE SERIAL KILLINGS.

       (a) Chapter 33 of title 28, United States Code, is amended 
     by adding after section 537 the following new section:

     ``Sec. 538. Investigation of serial killings

       ``The Attorney General and the Federal Bureau of 
     Investigation may investigate serial killings in violation of 
     the laws of a State or political subdivision, when such 
     investigation is requested by the head of a law enforcement 
     agency with investigative or prosecutive jurisdiction over 
     the offense. For purposes of this section--
       ``(1) the term `serial killings' means a series of three or 
     more killings, at least one of which was committed within the 
     United States, having common characteristics such as to 
     suggest the reasonable possibility that the crimes were 
     committed by the same actor or actors;
       ``(2) `killing' means conduct that would constitute an 
     offense under section 1111 of title 18, United States Code, 
     if Federal jurisdiction existed;
       ``(3) and section 540, `State' means a State of the United 
     States, the District of Columbia, and any commonwealth, 
     territory, or possession of the United States.''.
       (b) The table of contents for chapter 33 of title 28, 
     United States Code, is amended by inserting after the item 
     for section 537 the following:

``538. Investigation of serial killings.''.

     SEC. 714. FIREARMS AND EXPLOSIVES CONSPIRACY.

       (a) Section 924 of title 18, United States Codes, is 
     amended by adding at the end the following new subsection:
       ``(o) Except as otherwise provided in this section, a 
     person who conspires to commit any offense defined in this 
     chapter shall be subject to the same penalties (other than 
     the penalty of death) as those prescribed for the offense the 
     commission of which was the object of the conspiracy.''.
       (b) Section 844 of title 18, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(n) Except as otherwise provided in this section, a 
     person who conspires to commit any offense defined in this 
     chapter shall be subject to the same penalties (other than 
     the penalty of death) as those prescribed for the offense the 
     commission of which was the object of the conspiracy.''.

     SEC. 715. INCREASED PENALTIES FOR VIOLENCE IN THE COURSE OF 
                   RIOT OFFENSES.

       Section 2101(a) of title 18, United States Code, is amended 
     by striking ``Shall be fined under this title, or imprisoned 
     not more than five years, or both'' and inserting ``Shall be 
     fined under this title or (i) if death results from such act, 
     be imprisoned for any term of years or for life, or both; 
     (ii) if serious bodily injury (as defined in section 1365 of 
     this title) results from such act, be imprisoned for not more 
     than twenty years, or both; or (iii) in any other case, be 
     imprisoned for not more than five years, or both''.

     SEC. 716. PRETRIAL DETENTION FOR POSSESSION OF FIREARMS OR 
                   EXPLOSIVES BY CONVICTED FELONS.

       Section 3156(a)(4) of title 18, United States Code, is 
     amended--
       (1) by striking ``or'' at the end of subparagraph (B);
       (2) by striking the period at the end of subparagraph (C) 
     and inserting ``; or''; and
       (3) by adding after subparagraph (C) the following new 
     subparagraph:
       ``(D) an offense that is a violation of section 842(i) or 
     922(g) of this title (relating to possession of explosives or 
     firearms by convicted felons).''.

     SEC. 717. ELIMINATION OF UNJUSTIFIED SCIENTER ELEMENT FOR 
                   CARJACKING.

       Section 2119 of title 18, United States Code, is amended by 
     striking ``, with the intent to cause death or serious bodily 
     harm''.

     SEC. 718. THEFT OF VESSELS.

       (a) Section 2311 of title 18, United States Code, is 
     amended by adding at the end the following:
       `` `Vessel' means any watercraft or other contrivance used 
     or designed for transportation or navigation on, under, or 
     immediately above, water.'';
       (b) Sections 2312 and 2313 of title 18, United States Code, 
     are each amended by striking ``motor vehicle or aircraft'' 
     and inserting ``motor vehicle, vessel, or aircraft''.

     SEC. 719. CLARIFICATION OF AGREEMENT REQUIREMENT FOR RICO 
                   CONSPIRACY.

       Section 1962(d) of title 18, United States Code, is amended 
     by adding at the end ``For purposes of this subsection, it is 
     not necessary to establish that the defendant agreed 
     personally to commit any acts of racketeering activity.''

     SEC. 720. ADDITION OF ATTEMPT COVERAGE FOR INTERSTATE 
                   DOMESTIC VIOLENCE OFFENSE.

       Section 2261(a) of title 18, United States Code, is 
     amended--
       (1) in subsection (a)(1) by inserting ``or attempts to do 
     so,'' after ``thereby causes bodily injury to such spouse or 
     intimate partner,''; and
       (2) in subsection (a)(2) by inserting ``or attempts to do 
     so,'' after ``thereby causes bodily injury to the person's 
     spouse or intimate partner,''.

     SEC. 721. ADDITION OF FOREIGN MURDER AS A MONEY LAUNDERING 
                   PREDICATE.

       Section 1956(c)(7)(B)(ii) of title 18, United States Code, 
     is amended by inserting ``murder,'' before ``kidnapping''.

     SEC. 722. ASSAULTS OR OTHER CRIMES OF VIOLENCE FOR HIRE.

       Section 1958(a) of title 18, United States Code, is amended 
     by inserting ``or other felony crime of violence against the 
     person'' after ``murder''.

     SEC. 723. THREATENING TO USE A WEAPON OF MASS DESTRUCTION.

       Section 2332a(a) of title 18, United States Code, is 
     amended by inserting ``or threatens'' before ``or attempts or 
     conspires to use, a weapon of mass destruction''.

     SEC. 724. TECHNICAL AMENDMENTS.

       Section 60002 of the Violent Crime Control and Law 
     Enforcement Act of 1994 is amended--
       (1) by striking the words ``pursuant to this chapter'' in 
     section 3596 of title 18; and
       (2) by striking section 3597(a) of title 18 and replacing 
     it with:
       ``(a) In General.--A United States marshal charged with 
     supervising the implementation of a sentence of death shall 
     use appropriate Federal facilities for the purpose.''.
        Subtitle C--Amendments Relating to Courts and Sentencing

     SEC. 731. ALLOWING A REDUCTION OF SENTENCE FOR PROVIDING 
                   USEFUL INVESTIGATIVE INFORMATION ALTHOUGH NOT 
                   REGARDING A PARTICULAR INDIVIDUAL.

       Section 3553(e) of title 18, United States Code, section 
     994(n) of title 28, United States Code, and Rule 35(b) of the 
     Federal Rules of Criminal Procedure are each amended by 
     striking ``substantial assistance in the investigation or 
     prosecution of another person who has committed an offense'' 
     and inserting ``substantial assistance in an investigation of 
     any offense or the prosecution of another person who has 
     committed an offense''.

     SEC. 732. APPEALS FROM CERTAIN DISMISSALS.

       Section 3731 of title 18, United States Code, is amended by 
     inserting ``or any part thereof'' after ``as to any one or 
     more counts''.

     SEC. 733. ELIMINATION OF OUTMODED CERTIFICATION REQUIREMENT 
                   FROM THE GOVERNMENT APPEAL STATUTE.

       Section 3731 of title 18, United States Code, is amended in 
     the second paragraph by striking ``, if the United States 
     attorney certifies to the district court that the appeal is 
     not taken for purpose of delay and that the evidence is a 
     substantial proof of a fact material in the proceeding''.

     SEC. 734. CLARIFICATION OF MEANING OF OFFICIAL DETENTION FOR 
                   PURPOSES OF CREDIT FOR PRIOR CUSTODY.

       Section 3585(b) of title 18, United States Code, is amended 
     by adding at the end: ``For purposes of this subsection, 
     `official detention' does not include detention at a 
     community-based treatment or correctional facility.''.

     SEC. 735. LIMITATION ON REDUCTION OF SENTENCE FOR SUBSTANTIAL 
                   ASSISTANCE OF DEFENDANT.

       (a) Section 994(n) of title 18, United States Code, is 
     amended by adding the following at the end thereof: ``The 
     power to reduce a sentence under this section authorizes a 
     court to impose a sentence that is below a level established 
     by statute as a minimum sentence only on motion of the 
     government specifically seeking reduction below such 
     level.''.
       (b) Rule 35(b) of the Federal Rules of Criminal Procedure 
     is amended by adding ``only if the motion of the government 
     specifically seeks reduction below such level'' after 
     ``minimum sentence''.

     SEC. 736. IMPROVEMENT OF HATE CRIMES SENTENCING PROCEDURE.

       Section 280003(b) of Public Law 103-322 is amended by 
     striking ``the finder of fact at trial'' and inserting ``the 
     court at sentencing''.

     SEC. 737. CLARIFICATION OF LENGTH OF SUPERVISED RELEASE TERMS 
                   IN CONTROLLED SUBSTANCE CASES.

       Sections 401(b)(1) (A), (B), (C), and (D) of the Controlled 
     Substances Act (21 U.S.C. 841(b)(1) (A), (B), (C), and (D)) 
     are each amended by striking ``Any sentence'' and inserting 
     ``Notwithstanding section 3583 of title 18, any sentence''.

     SEC. 738. AUTHORITY OF COURT TO IMPOSE A SENTENCE OF 
                   PROBATION OR SUPERVISED RELEASE WHEN REDUCING A 
                   SENTENCE OF IMPRISONMENT IN CERTAIN CASES.

       Section 3582(c)(1)(A) of title 18, United States Code, is 
     amended by inserting ``(and may impose a sentence of 
     probation or supervised release with or without conditions)'' 
     after ``may reduce the term of imprisonment''.
     [[Page S91]] SEC. 739. EXTENSION OF PAROLE COMMISSION TO DEAL 
                   WITH ``OLD LAW'' PRISONERS.

       For the purposes of section 235(b) of Public Law 98-473 as 
     it relates to chapter 311 of title 18, United States Code, 
     and the United States Parole Commission, each reference in 
     such section to ``ten years'' or a ``ten-year period'' shall 
     be deemed a reference to ``fifteen years'' or a ``fifteen-
     year period'', respectively. Notwithstanding the provisions 
     of section 4203 of title 18, United States Code, the United 
     States Parole Commission is authorized to perform its 
     functions with any quorum of Commissioners, or Commissioner, 
     currently holding office, as the Commission may prescribe by 
     regulation.

     SEC. 740. CONFORMING AMENDMENTS RELATING TO SUPERVISED 
                   RELEASE.

       (a) Sections 1512(a)(1)(C), 1512(b)(3), 1512(c)(2), 1513 
     (a)(1)(B), and 1513 (b)(2) are each amended by striking 
     ``violation of conditions of probation, parole or release 
     pending judicial proceedings'' and inserting ``violation of 
     conditions of probation, supervised release, parole, or 
     release pending judicial proceedings''.
       (b) Section 3142 of title 18, United States Code, is 
     amended--
       (1) in subsection (d)(1), by inserting ``, supervised 
     release,'' after ``probation''; and
       (2) in subsection (g)(3), by inserting ``or supervised 
     release'' after ``probation''.

     SEC. 741. REPEAL OF OUTMODED PROVISIONS BARRING FEDERAL 
                   PROSECUTION OF CERTAIN OFFENSES.

       (a) Sections 659 and 2117 of title 18, United States Code, 
     are each amended by striking the first sentence of the last 
     undesignated paragraph;
       (b) Sections 660 and 1992 of title 18, United States Code, 
     are each amended by striking the last undesignated paragraph;
       (c) Section 2101 of title 18, United States Code, is 
     amended by striking subsection (c) and by redesignating 
     subsections (d), (e), and (f) as subsections (c), (d), and 
     (e), respectively;
       (d) Section 80a-36 of title 15, United States Code, is 
     amended by striking the last sentence;
       (e) Section 1282 of title 15, United States Code, is 
     repealed.
                  Subtitle D--Miscellaneous Amendments

     SEC. 751. CONFORMING ADDITION TO OBSTRUCTION OF CIVIL 
                   INVESTIGATIVE DEMAND STATUTE.

       Section 1505 of title 18, United States Code, is amended by 
     inserting ``section 1968 of this title or'' before ``the 
     Antitrust Civil Process Act''.

     SEC. 752. ADDITION OF ATTEMPTED THEFT AND COUNTERFEITING 
                   OFFENSES TO ELIMINATE GAPS AND INCONSISTENCIES 
                   IN COVERAGE.

       (a)(1) Section 153 of title 18, United States Code, is 
     amended by inserting ``, or attempts so to appropriate, 
     embezzle, spend or transfer,'' before ``any property''.
       (2) Section 641 of title 18, United States Code, is amended 
     by striking ``or'' at the end of the first paragraph and by 
     inserting after such paragraph the following: ``Whoever 
     attempts to commit an offense described in the preceding 
     paragraph; or''.
       (3) Section 655 of title 18, United States Code, is amended 
     by inserting ``or attempts to steal or so take,'' after 
     ``unlawfully takes,''.
       (4) Sections 656 and 657 of title 18, United States Code, 
     are each amended--
       (A) by inserting ``, or attempts to embezzle, abstract, 
     purloin, or willfully misapply,'' after ``willfully 
     misapplies''; and
       (B) by inserting ``or attempted to be embezzled, 
     abstracted, purloined, or misapplied'' after ``misapplied''.
       (5) Section 658 of title 18, United States Code, is amended 
     by inserting ``or attempts so to remove, dispose of, or 
     convert,'' before ``any property''.
       (6) Section 659 of title 18, United States Code, is 
     amended--
       (A) in the first and third paragraphs by inserting ``or 
     attempts to embezzle, steal, or so take or carry away,'' 
     after ``carries away,''; and
       (B) in the fourth paragraph by inserting ``or attempts to 
     embezzle, steal, or so take,'' before ``from any railroad 
     car''.
       (7) Section 661 of title 18, United States Code, is 
     amended--
       (A) by inserting ``or attempts so to take and carry away,'' 
     before ``any personal property''; and
       (B) by inserting ``or attempted to be taken'' after 
     ``taken'' each place it appears;
       (8) Section 664 of title 18, United States Code, is amended 
     by inserting ``or attempts to embezzle, steal, or so abstract 
     or convert,'' before ``any of the moneys''.
       (9) Section 665(a) of title 18, United States Code, is 
     amended--
       (A) by inserting ``, or attempts to embezzle, so misapply, 
     steal, or obtain by fraud,'' before ``any of the moneys''; 
     and
       (B) by inserting ``or attempted to be embezzled, 
     misapplied, stolen, or obtained by fraud'' after ``obtained 
     by fraud''.
       (10) Section 666(a)(1)(A) of title 18, United States Code, 
     is amended by inserting ``or attempts to embezzle, steal, 
     obtain by fraud, or so convert or misapply,'' before 
     ``property''.
       (11) Section 1025 of title 18, United States Code, is 
     amended--
       (A) by inserting ``or attempts to obtain'' after 
     ``obtains''; and
       (B) by inserting ``or attempted to be obtained'' after 
     ``obtained''.
       (12) Section 1163 of title 18, United States Code, is 
     amended by inserting ``attempts so to embezzle, steal, 
     convert, or misapply,'' after ``willfully misapplies,''.
       (13) Sections 1167 (a) and (b) of title 18, United States 
     Code, are each amended by inserting ``or attempts so to 
     abstract, purloin, misapply, or take and carry away,'' before 
     ``any money''.
       (14) Sections 1168 (a) and (b) of title 18, United States 
     Code, are each amended by inserting ``or attempts so to 
     embezzle, abstract, purloin, misapply, or take and carry 
     away,'' before ``any moneys,''.
       (15) Section 1707 of title 18, United States Code, is 
     amended by inserting ``, or attempts to steal, purloin, or 
     embezzle,'' before ``any property'' and by inserting ``or 
     attempts to appropriate'' after ``appropriates''.
       (16) Section 1708 of title 18, United States Code, is 
     amended in the second paragraph by inserting ``or attempts to 
     steal, take, or abstract,'' after ``abstracts,'' and by 
     inserting ``, or attempts so to obtain,'' after ``obtains''.
       (17) Section 1709 of title 18, United States Code is 
     amended--
       (A) by inserting ``or attempts to embezzle'' after 
     ``embezzles''; and
       (B) by inserting ``, or attempts to steal, abstract, or 
     remove,'' after ``removes''.
       (18) Section 2113(b) of title 18, United States Code, is 
     amended by inserting ``or attempts so to take and carry 
     away,'' before ``any property'' each place it appears.
       (b)(1) Section 477 of title 18, United States Code, is 
     amended by inserting ``, or attempts so to sell, give, or 
     deliver,'' before ``any such imprint''.
       (2) Section 479 of title 18, United States Code, is amended 
     by inserting ``or attempts to utter or pass,'' after 
     ``passes,''.
       (3) Section 490 of title 18, United States Code, is amended 
     by inserting ``attempts to pass, utter, or sell,'' before 
     ``or possesses''.
       (4) Section 513(a) of title 18, United States Code, is 
     amended by inserting ``or attempts to utter,'' after 
     ``utters''.

     SEC. 753. CLARIFICATION OF SCIENTER REQUIREMENT FOR RECEIVING 
                   PROPERTY STOLEN FROM AN INDIAN TRIBAL 
                   ORGANIZATION.

       Section 1163 of title 18, United States Code, is amended in 
     the second paragraph by striking ``so''.

     SEC. 754. LARCENY INVOLVING POST OFFICE BOXES AND POSTAL 
                   STAMP VENDING MACHINES.

       Section 2115 of title 18, United States Code, is amended--
       (1) by striking ``or'' before ``any building'';
       (2) by inserting ``or any post office box or postal stamp 
     vending machine within such a building,'' after ``used in 
     whole or in part as a post office,''; and
       (3) by inserting ``or in such box or machine,'' after ``so 
     used''.

     SEC. 755. CONFORMING AMENDMENT TO LAW PUNISHING OBSTRUCTION 
                   OF JUSTICE BY NOTIFICATION OF EXISTENCE OF A 
                   SUBPOENA FOR RECORDS IN CERTAIN TYPES OF 
                   INVESTIGATIONS.

       Section 1510(b)(3)(B) of title 18, United States Code, is 
     amended--
       (1) by striking ``or'' at the end of subparagraph (i);
       (2) by striking the period and inserting ``; or'' at the 
     end of subparagraph (ii); and
       (3) by adding the following new subparagraph:
       ``(iii) the Controlled Substances Act, the Controlled 
     Substances Import and Export Act, or section 60501 of the 
     Internal Revenue Code of 1986.''.

     SEC. 756. CLOSING LOOPHOLE IN OFFENSE OF ALTERING OR REMOVING 
                   MOTOR VEHICLE IDENTIFICATION NUMBERS.

       Section 511(c)(1) of title 18, United States Code, is 
     amended --
       (1) by inserting ``(i)'' after ``for purposes of 
     identification''; and
       (2) by inserting before the semicolon ``or
       ``(ii) which can be correlated to a particular motor 
     vehicle or part''.

     SEC. 757. APPLICATION OF VARIOUS OFFENSES TO POSSESSIONS AND 
                   TERRITORIES.

       (a) Sections 241 and 242 of title 18, United States Code, 
     are each amended by striking ``any State, Territory, or 
     District'' and inserting ``any State, Territory, 
     Commonwealth, Possession, or District''.
       (b) Sections 793(h)(1) and 794(d)(1) of title 18, United 
     States Code, are each amended by adding at the end the 
     following: ``For the purposes of this subsection, the term 
     `State' includes a State of the United States, the District 
     of Columbia, and any commonwealth, territory, or possession 
     of the United States.''.
       (c) Section 925(a)(5) of title 18, United States Code, is 
     amended by striking ``For the purpose of paragraphs (3) and 
     (4)'' and inserting ``For the purpose of paragraph (3)''.
       (d) Sections 1014 and 2113(g) of title 18, United States 
     Code, are each amended by adding at the end the following: 
     ``The term `State-chartered credit union' includes a credit 
     union chartered under the laws of a State of the United 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.''.
       (e) Section 1073 of title 18, United States Code, is 
     amended by adding at the end of the first paragraph the 
     following: ``For the purposes of clause (3) of this 
     paragraph, the term `State' includes a State of the United 
     States, the District of Columbia, and any commonwealth, 
     territory, or possession of the United States.''.
     [[Page S92]]   (f) Section 1715 of title 18, United States 
     Code, is amended by striking ``State, Territory, or 
     District'' each place those words appear and inserting 
     ``State, Territory, Commonwealth, Possession, or District''.
       (g) Section 1716 of title 18, United States Code, is 
     amended--
       (1) in subsection (g)(2) by striking ``State, Territory, or 
     the District of Columbia'' and inserting ``State'';
       (2) in subsection (g)(3) by striking ``the municipal 
     government of the District of Columbia or of the government 
     of any State or territory, or any county, city or other 
     political subdivision of a State'' and inserting ``any State, 
     or any political subdivision of a State''; and
       (3) by inserting a new subsection (j), as follows:
       ``(j) For purposes of this section, the term `State' 
     includes a State of the United States, the District of 
     Columbia, and any commonwealth, territory, or possession of 
     the United States.''.
       (h) Section 1761 of title 18, United States Code, is 
     amended by adding at the end a new subsection, as follows:
       ``(d) For the purposes of this section, the term `State' 
     means a State of the United States and any commonwealth, 
     territory, or possession of the United States.''.
       (i) Section 3156(a) of title 18, United States Code, is 
     amended--
       (1) by striking ``and'' at the end of paragraph (3);
       (2) by striking the period and inserting ``; and'' at the 
     end of paragraph (4); and
       (3) by adding a new paragraph (5), as follows:
       ``(5) the term `State' includes a State of the United 
     States, the District of Columbia, and any commonwealth, 
     territory, or possession of the United States.''.
       (j) Section 102(26) of the Controlled Substances Act (21 
     U.S.C. 802(26)) is amended to read as follows:
       ``(26) the term `State' means a State of the United States, 
     the District of Columbia and any commonwealth, territory, or 
     possession of the United States.''.
       (k) Section 1121 of title 18, United States Code, is 
     amended by inserting at the end a new subsection (c) as 
     follows:
       ``(c) For the purposes of this section, the term `State' 
     means a State of the United States, the District of Columbia, 
     and any commonwealth, territory, or possession of the United 
     States.''.
       (l) Section 228(d)(2) of title 18, United States Code, is 
     amended by inserting ``commonwealth,'' before ``possession or 
     territory of the United States''.

     SEC. 758. ADJUSTING AND MAKING UNIFORM THE DOLLAR AMOUNTS 
                   USED IN TITLE 18 TO DISTINGUISH BETWEEN GRADES 
                   OF OFFENSES.

       (a) Sections 215, 288, 641, 643, 644, 645, 646, 647, 648, 
     649, 650, 651, 652, 653, 654, 655, 656, 657, 658, 659, 661, 
     662, 665, 872, 1003, 1025, 1163, 1361, 1707, 1711, and 2113 
     of title 18, United States Code, are each amended by striking 
     ``$100'' each place it appears and inserting ``$1,000''.
       (b) Section 510 of title 18, United States Code , is 
     amended by striking ``$500'' and inserting ``$1,000''.
       (c) Section 1864 of title 18, United States Code, is 
     amended by striking ``$10,000'' and inserting ``$1,000''.

     SEC. 759. CONFORMING AMENDMENT CONCERNING MARIJUANA PLANTS.

       Section 1010(b)(4) of the Controlled Substances Import and 
     Export Act (21 U.S.C. 960(b)(4)) is amended by striking 
     ``except in the case of 100 or more marihuana plants'' and 
     inserting ``except in the case of 50 or more marihuana 
     plants''.

     SEC. 760. ACCESS TO CERTAIN RECORDS.

       Section 551 of title 47, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(i) Limited Exception for Federal Grand Jury 
     Proceeding.--Nothing in this section shall apply to any 
     subpoena or court order issued to a cable operator for basic 
     subscriber information in connection with proceedings before 
     a Federal grand jury. A court shall have authority to order a 
     cable operator not to notify the subscriber of the existence 
     of a subpoena or court order to which this subsection is 
     applicable. For purposes of this subsection, the term `basic 
     subscriber information' means information stating whether or 
     not a person is or was a subscriber and the name and address 
     (past or present) of a subscriber.''

     SEC. 761. CLARIFICATION OF INAPPLICABILITY OF 18 U.S.C. 2515 
                   TO CERTAIN DISCLOSURES.

       Section 2515 of title 18, United States Code, is amended by 
     adding at the end the following: ``This section shall not 
     apply to the disclosure by the United States, a State, or 
     political subdivision in a criminal trial or hearing or 
     before a grand jury of the contents of a wire or oral 
     communication, or evidence derived therefrom, the 
     interception of which was in violation of section 2511(2) (d) 
     (relating to certain interceptions not under color of 
     law).''.

     SEC. 762. CLARIFYING OR CONFORMING AMENDMENTS ARISING FROM 
                   THE ENACTMENT OF PUBLIC LAW 103-322.

       (a) Section 3286 of title 18, United States Code, is 
     amended by striking ``any offense'' and inserting ``any non-
     capital offense''.
       (b) Section 5032 of title 18, United States Code, is 
     amended by striking ``1111, 1113'' and inserting ``1111, 
     1112, 1113''.
       (c) Section 81 of title 18, United States Code, is amended 
     by striking ``fined under this title or imprisoned not more 
     than five years'' and inserting ``imprisoned not more than 
     twenty years or fined the greater of the fine under this 
     title or the cost of repairing or replacing any property that 
     is damaged or destroyed''.
       (d)(1)(A) Chapter 213 of title 18, United States Code, is 
     amended by adding at the end a new section, as follows:

     ``Sec. 3294. Arson offenses

       ``No person shall be prosecuted, tried, or punished for any 
     noncapital offense under sections 81, 844 (f), (h), or (i) of 
     this title unless the indictment is found or the information 
     is instituted within 10 years after the date on which the 
     offense was committed.''
       (B) The chapter index for chapter 213 of title 18, United 
     States Code, is amended by inserting at the end the 
     following:

``3294. Arson offenses.''.

       (2) Section 844(i) of title 18, United States Code, is 
     amended by striking the last sentence.
       (e) Section 704(b)(2) of title 18, United States Code, is 
     amended by striking ``with respect to a Congressional Medal 
     of Honor''.
       (f) Section 408 of the Controlled Substances Act (21 U.S.C. 
     848) is amended--
       (1) by striking subsections (g)-(p), (g)(1)-(3), and (r); 
     and
       (2) by redesignating subsections (g)(4)-(10) as (f)(1)-(7).
       (g) Sections 2261(b)(3) and 2262(b)(3) of title 18, United 
     States Code, are each amended by inserting ``(as defined in 
     section 1365 of this title)'' after ``serious bodily 
     injury''.
       (h)(1) Section 2261 of title 18, United States Code, is 
     amended--
       (A) in paragraph (a)(1) by striking ``with the intent to 
     injure, harass, or intimidate'' and inserting ``with the 
     intent to kill, injure, harass, or intimidate''; and
       (B) in paragraphs (a)(1) and (a)(2) by inserting ``or 
     death'' after ``and thereby causes bodily injury''.
       (2) Section 2262 of title 18, United States Code, is 
     amended--
       (A) in paragraph (a)(1) by inserting ``or death'' after 
     ``bodily injury''; and
       (B) in paragraph (a)(2) by striking ``commits an act that 
     injures'' and inserting ``commits an act that causes bodily 
     injury or death to''.

     SEC. 763. TECHNICAL AMENDMENTS.

       (a) Section 112 of title 18, United States Code, is amended 
     by striking ``fined not more than $10,000'' and inserting 
     ``fined under this title''.
       (b) Sections 152, 153, and 154 of title 18, United States 
     Code, are each amended by striking ``fined not more than 
     $5,000'' and inserting ``fined under this title''.
       (c) Section 970 of title 18, United States Code, is amended 
     by striking ``fined not more than $500'' and inserting 
     ``fined under this title''.
       (d) Sections 922 (a)(2) and (a)(3) of title 18, United 
     States Code, are each amended by striking ``subsection 
     (B)(3)'' and inserting ``subsection (b)(3)''.
       (e) Section 844(h) of title 18, United States Code, is 
     amended--
       (1) by striking ``be sentenced to imprisonment for 5 years 
     but not more than 15 years'' and inserting ``be sentenced to 
     imprisonment for a minimum of 5 and a maximum of 15 years''; 
     and
       (2) by striking ``be sentenced to imprisonment for 10 years 
     but not more than 25 years'' and inserting ``be sentenced to 
     imprisonment for a minimum of 10 and a maximum of 25 years''.
       (f) Section 3582(c)(1)(A)(i) of title 18, United States 
     Code, is amended by inserting ``or'' after the semicolon.
       (g) Section 2516(1)(l) of title 18, United States Code, is 
     amended by striking ``or'' after the semicolon.
       (h) Section 5032 of title 18, United States Code, is 
     amended by inserting ``or as authorized under section 3401(g) 
     of this title'' after ``shall proceed by information''.
       (i) Section 1114 of title 18, United States Code, is 
     amended by striking ``1112.,'' and inserting ``1112,''.
       (j) Section 3553(f) of title 18, United States Code, is 
     amended by striking ``section 1010 or 1013 of the Controlled 
     Substances Import and Export Act (21 U.S.C. 961, 963)'' and 
     inserting ``section 1010 or 1013 of the Controlled Substances 
     Import and Export Act (21 U.S.C. 960, 963)''.
       (k) Section 1961(1)(D) of title 18, United States Code, is 
     amended by striking ``that title'' and inserting ``this 
     title''.
       (l) Section 1510(b)(2)(B) of title 18, United States Code, 
     is amended by striking ``that subpoena'' the first place it 
     appears and inserting ``that subpoena for records''.
       (m) Section 3286 of title 18, United States Code, is 
     amended--
       (1) by striking ``2331'' and inserting ``2332;
       (2) by striking ``2339'' and inserting ``2332a''; and
       (3) by striking ``36'' and inserting ``37''.
       (n) Section 2339A of title 18, United States Code is 
     amended--
       (1) by striking ``2331'' and inserting ``2332;
       (2) by striking ``2339'' and inserting ``2332a'';
       (3) by striking ``36'' and inserting ``37''; and
       (4) by striking ``of an escape'' and inserting ``or an 
     escape''.
       (o) Section 2340(1) of title 18, United States Code, is 
     amended by striking ``with custody'' and inserting ``within 
     his or her custody''.
       (p) Section 504 of title 18, United States Code, is 
     amended--
     [[Page S93]]   (1) in paragraph (2) by striking ``The'' the 
     first place it appears and inserting ``the''; and
       (2) in paragraph (3) by striking ``importation, of motion-
     picture films'' and inserting ``importation of motion-picture 
     films''.
       (q) Section 924(a) of title 18, United States Code, is 
     amended by redesignating the second paragraph (5) (relating 
     to violations of section 922(x)) as paragraph (6).

     SEC. 764. SEVERABILITY.

       If any provision of this Act, an amendment made by this 
     Act, or the application of such provision or amendment to any 
     person or circumstance is held to be unconstitutional, the 
     remainder of this Act, the amendments made by this Act, and 
     the application of the provisions of such to any person or 
     circumstance shall not be affected thereby.
          Summary of Proposed Anti-Crime Bill--January 4, 1995

       This is a summary of the major provisions of S. 3, the 
     proposed Senate crime bill. The bill eliminates the ``pork'' 
     contained in the 1994 Crime Bill, and restores to States the 
     responsibility for local crime prevention measures by 
     ensuring that local law enforcement agencies, not Washington 
     bureaucrats, direct the use of federal law enforcement 
     grants. The bill sets mandatory sentences for certain violent 
     crimes, and authorizes additional funds for building prisons 
     and for hiring and training policy officers. The bill also 
     makes significant revisions in federal criminal procedure, 
     including: a reform of habeas corpus law so that convicted 
     criminals cannot abuse the appeals process, an assurance that 
     relevant evidence will not be withheld from juries, and a 
     criminal penalty for knowingly filing a pleading in federal 
     criminal cases that contains material misstatements of law or 
     fact. A section by section summary of the bill's major 
     provisions is set forth below.
       Should you have questions about the bill not answered by 
     this summary, please call Mike O'Neill or Mike Kennedy of the 
     Judiciary Committee Staff.


               TITLE I--INCARCERATION OF VIOLET CRIMINALS

       This title increases prison construction funding and 
     provides limits for prisoner litigation.

     SEC. 101. Prison Construction And Truth In Sentencing Grants.

       This section amends the Violent Offender Incarceration and 
     Truth in Sentencing Incentive Grants provisions of the 
     Violent Crime Control and Law Enforcement Act of 1994 (1994 
     Crime Bill) (Title II, Subtitle A) by increasing the amount 
     authorized for prison grants to states and ensuring that 
     these grants will be used for the construction and operation 
     of brick-and-mortar prisons. The bill removes conditions 
     requiring the states to adopt specified corrections plans in 
     order to qualify for the federal funds. It also increases the 
     amount each qualifying state is guaranteed to receive and 
     ensures that the grants will be distributed on a formula 
     basis.
       Authorized funding for prison grants is increased by 
     approximately $1 billion over the levels authorized in the 
     1994 Crime Bill.

                           SEC. 102. Repeal.

       This section repeals Subtitle B of title II of the 1994 
     Crime Bill, which authorized $150 million in discretionary 
     grants for alternate sanctions for criminal juveniles.

          SEC. 103. Civil Rights Of Institutionalized Persons.

       This section improves upon the meager modifications made in 
     the 1994 Crime Bill to the Civil Rights of Institutionalized 
     Persons Act by adopting provisions passed last year by our 
     House colleagues. These provisions remove the limits on a 
     court's ability to stay prisoner litigation while 
     administrative remedies are being exhausted, allow the courts 
     to dismiss frivolous suits sua sponte, remove the requirement 
     in current law that inmates participate in the formulation of 
     the grievance procedures, and require inmates with assets to 
     pay filing fees.

               SEC. 104. Report On Prison Work Progress.

       This section directs the Department of Justice to make 
     recommendations for changing existing law so that more 
     federal prisoners may be employed without adversely affecting 
     the private sector or labor.

                 SEC. 105. Drug Treatment For Prisoners

       This section repeals the sentence reduction ``incentive'' 
     for federal prisoners who participate in prison drug 
     treatment programs under the Substance Abuse Treatment in 
     Federal Prisons section of the 1994 Crime Bill.


          TITLE II--STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

       This title provides block grants to the states to hire and 
     train police officers and to develop new crime fighting 
     technologies.

                     SEC. 201. Block Grant Program.

       This section modifies the Public Safety Partnership and 
     Community Policing Act of 1994 (Title I of the 1994 Crime 
     Bill) and the policing grants provisions of the 1994 Crime 
     Bill.
       The 1994 provision is reformulated as the Law Enforcement 
     Assistance Block Grants Act of 1995, which provides grants to 
     state and local law enforcement agencies.
       Grants under the program would be made to the states 
     explicitly for the hiring and training of officers or the 
     establishment and upgrading of technologies used to detect 
     crime. States would be permitted to save the grant money 
     disbursed in any given grant year in a trust fund for these 
     purposes in years after the federal grant program ends.
       Grants would be allocated to the states on a formula basis. 
     For each grant year, each state would receive a base 
     allocation of 0.6% of appropriated funds. The remaining 
     appropriations will
      be allocated on the basis of state population as determined 
     by the 1990 decennial census, as adjusted annually.
       The total amount of the grants authorized would be 
     increased approximately $1 billion over the levels authorized 
     in the 1994 Crime Bill.


      TITLE III--FEDERAL EMERGENCY LAW ENFORCEMENT ASSISTANCE ACT

        SEC. 301. Federal Judiciary And Federal Law Enforcement.

       This section amends title XIX of the 1994 Crime Bill by 
     increasing appropriations for the Federal Bureau of 
     Investigation and the United States Attorneys, while at the 
     same time maintaining the funding levels established by the 
     1994 Crime Bill for the Federal Judiciary, the Department of 
     Justice, and the Treasury Department.

               SEC. 302. Drug Enforcement Administration.

       This section amends section 180104 of the 1994 Crime Bill 
     by increasing funding for the Drug Enforcement 
     Administration.


                      TITLE IV--CRIMINAL PENALTIES

       This title strengthens the penalties for several federal 
     offenses. Most of these provisions passed the Senate as a 
     part of its 1993 crime bill but were not included in the 
     enacted 1994 Crime Bill.

    SEC. 401. Serious Juvenile Crimes as Armed Career Criminal Act 
                              Predicates.

       This section would make serious juvenile offenses predicate 
     crimes under the Armed Career Criminal Act, permitting the 
     court to subject juvenile repeat offenders to stricter 
     sentences.

             SEC. 402. Prosecution of Juveniles as Adults.

       This section repeals the 1994 Crime Bill's weak provisions 
     on trying serious juvenile criminals as adults and enacts 
     similar provisions to those passed as a part of the Senate's 
     1993 Crime Bill. Under these provisions, the list of offenses 
     for which juveniles may be prosecuted as adults is expanded 
     to include drug conspiracies and importation, firearms 
     transportation, firearms trafficking, and related 
     conspiracies. The 1994 Crime Bill included only firearms 
     offenses.
       This section also enacts the Moseley-Braun provision from 
     the Senate's 1993 bill, with a slight modification. Under 
     this provision, any minor age 13 or older who is accused of 
     certain serious offenses under federal law (murder, attempted 
     murder, armed robbery, assault with intent to murder, 
     aggravated sexual assault) must be tried as an adult in 
     federal court. The juvenile could petition the court for 
     resentencing upon attaining age 16. Unlike the 1993 
     provision, there is no requirement that the offender be armed 
     with a firearm during certain offenses in order to qualify 
     for mandatory adult prosecution.

  SEC. 403. Availability Of Fines And Supervised Release For Juvenile 
                               Offenders.

       This section makes a technical correction in the law, 
     permitting courts to impose fines or conditions of supervised 
     release on juveniles.

           SEC. 404. Amendments Concerning Juvenile Records.

       This section strengthens provisions permitting the FBI to 
     create an identification record for juveniles who are 
     convicted of committing a crime that, if committed by an 
     adult, would be deemed a serious felony.

SEC. 405. Mandatory Minimum Prison Sentences For Persons Who Use Minors 
        In Drug Trafficking Activities Or Sell Drugs To Minors.

       This section establishes stiff mandatory minimum penalties 
     of 10 years for a first offense and life imprisonment for a 
     second offense for adults who employ minors in the 
     distribution, sale, or manufacturing of drugs, or who sell 
     drugs to minors.

              SEC. 406. Mandatory Minimum Sentence Reform.

       This section would prospectively replace the overly-broad 
     ``reform'' of mandatory minimum sentences contained in the 
     1994 Crime Bill with the narrower approach needed to insure 
     that such sentences are justly imposed. The provision is the 
     same as that proposed by Republicans during the debate on the 
     1994 Crime Bill conference report.
       In particular, defendants would not be excused from 
     mandatory minimum sentencing requirements if they had one or 
     more criminal history points, were involved in an offense 
     that resulted in the death or serious injury of a victim, 
     carried a firearm, owned the drugs, or financed any part of 
     the drug deal.

  SEC. 407. Increased Mandatory Minimum Sentences For Criminals Using 
                               Firearms.

       This section increases the penalties for using or carrying 
     a firearm during the commission of a crime by imprisonment 
     for not less than 10 years, or, if the firearm is discharged, 
     for not less than 20 years, or if the death of a person 
     results, be
punished by death or by incarceration for not less than life.SEC. 408. 
                            Arson Penalties.

       This section increases the maximum penalties and fines for 
     arson and increases the statute of limitations from 7 to 10 
     years.

SEC. 409. Interstate Travel Or Use Of Mails Or A Facility In Interstate 
                    Commerce To Further Kidnapping.

       This section enables federal prosecution of Kidnapping 
     cases where the perpetrators do 
      [[Page S94]] not transport the victim across state lines, 
     but use interstate facilities during the commission of the 
     crime.


               title v--federal criminal procedure reform

       This title reforms certain aspects of criminal procedure. 
     It establishes greater protection for witnesses and jurors; 
     enacts meaningful habeas corpus reform; limits the 
     exclusionary rule while at the same time providing better 
     remedies for innocent citizens whose Fourth Amendment rights 
     are violated; and permits the admission of voluntary 
     confessions even when defense counsel is not present during 
     the confession. This title further clarifies the obligations 
     of attorneys practicing criminal law in federal court.

                   SEC. 501. Obstruction Of Justice.

       This section makes it an obstruction of justice for an 
     attorney to file in federal court any pleading in a criminal 
     case that the filer knows to contain a false statement of 
     material fact or law.

               SEC. 502. Conduct of Federal Prosecutors.

       This section establishes that the Attorney General has sole 
     authority to promulgate the rules governing the conduct of 
     federal prosecutors in federal court, notwithstanding the 
     ethical rules or rules of the court adopted by any state.

                 SEC. 503. Fairness in Jury Selection.

       This section amends Federal Rule of Criminal Procedure 
     24(b) by equalizing the number of peremptory challenges 
     afforded the prosecution and defense (6 strikes per side). It 
     preserves the 6 (prosecution) 10 (defense) split in trails 
     involving two or more joined defendants.

       SEC. 504. Balance In The Composition Of Rules Committees.

       This section gives equal representation to prosecutors and 
     the defense bar on the various rules committees of the 
     Judicial Conference. Currently, prosecutors are under-
     represented on these committees.

         SEC. 505. Reimbursement of Reasonable Attorney's Fees.

       This section permits the reimbursement of reasonable 
     attorney's fees for current or former Department of Justice 
     employees or federal public defenders who are subject to 
     criminal investigation arising out of acts performed in the 
     discharge of their duties.

      SEC. 506. Mandatory Restitution To Victims Of Violent Crime.

       Amends 18 U.S.C. 3663 by mandating federal judges to enter 
     orders requiring defendants to provide restitution to the 
     victims of their crimes.

              SEC. 507. Admissibility of Certain Evidence.

       This section clarifies and strengthens 18 U.S.C. 3501 by 
     requiring a criminal defendant to prove, by a preponderance 
     of the evidence, that a confession obtained by police 
     officers was involuntary. If the defendant is unable to meet 
     that burden, a voluntary confession will be admitted in 
     court.
       Section 507 also eliminates the exclusionary rule as it 
     pertains to the Fourth Amendment and provides a tort remedy 
     for those whose Fourth Amendment rights have been violated by 
     an unreasonable search or seizure.

              SEC. 508-510. General Habeas Corpus Reform.

       This section incorporates reforms to curb the abuse of the 
     statutory writ of habeas corpus, and to address the acute 
     problems of unnecessary delay and abuse in capital cases. It 
     sets a one year limitation on an application for a habeas 
     writ and revises the procedures for consideration of a writ 
     in federal court. It provides for the exhaustion of state 
     remedies and bars habeas review of claims that have fully and 
     fairly adjudicated in state court.
       The revision in capital habeas practice also sets a time 
     limit within which the district court must act on a writ, and 
     provides the government with the right to seek a writ of 
     mandamus if the district court refuses to act within the 
     allotted time period. Successive petitions must be approved 
     by a panel of the court of appeals and are limited to those 
     petitions that contain newly discovered evidence that would 
     seriously undermine the
      jury's verdict or that involve new constitutional rights 
     that have been retroactively applied by the Supreme Court.
       In capital cases, procedures are established for the 
     appointment of counsel, conduct of evidentiary hearings, and 
     the application of the procedures to state unitary review 
     systems. Courts are directed to give habeas petitions in 
     capital cases priority status and to decide those petitions 
     within specified time periods.


                   title vi--prevention of terrorism

       This title strengthens the penalties for those engaged in 
     terrorist acts.

    Sec. 601. Willful Violation of Federal Aviation Administration 
                              Regulations

       This section imposes criminal penalties for willful 
     violations of FAA security regulations.

    Sec. 602. Assaults, Murders, And Threats Against Former Federal 
              Officials In Performance Of Official Duties

       This section permits prosecution of assaults, murders, and 
     threats made against former government officials arising from 
     the discharge of their official duties while employed by the 
     government.

 Sec. 603. Wiretap Authority For Alien Smuggling And Related Offenses 
          And Inclusion Of Alien Smuggling As A RICO Predicate

       This section expands authority for issuing wiretaps to 
     encompass alien smuggling offenses and includes alien 
     smuggling as a RICO predicate crime.

Sec. 604. Authorization For Interceptions Of Communications In Certain 
                       Terrorism Related Offenses

       This section authorizes the interception of communications 
     in certain, limited, terrorism cases, including the wrecking 
     of trains, providing material support to terrorists, and 
     engaging in terrorist acts at airports.

 Sec. 605. Participation Of Foreign And State Government Personnel In 
                    Interceptions Of Communications

       This section permits the participation of state law 
     enforcement officials and officials of foreign law 
     enforcement agencies in intercepting communications.

   Sec. 606. Disclosure Of Intercepted Communications To Foreign Law 
                          Enforcement Agencies

       This section permits, under certain, limited circumstances, 
     disclosure of intercepted communications to cooperating 
     foreign law enforcement agencies.

                   Sec. 607. Alien Terrorist Removal

       This section would ensure, through the use of a limited ex 
     parte procedure, that the United States can expeditiously 
     deport alien terrorists without disclosing national security 
     secrets to them and their criminal partners.

                       Sec. 608. Territorial Sea

       This section codifies the extension of United States 
     territorial sea, as defined by a 1988 Presidential 
     Proclamation. This area would then be included within the 
     special maritime and territorial jurisdiction of the U.S. 
     This section also adopts non-conflicting state law in the 
     territorial sea.

  Sec. 609. Clarification And Extension Of Criminal Jurisdiction Over 
                  Certain Terrorism Offenses Overseas

       This section extends the United States' criminal 
     jurisdiction over certain terrorism crimes committed 
     overseas.

          Sec. 610. Federal Aviation Reporting Responsibility

       This section requires the Federal Aviation Administration 
     to notify the Justice Department when it discovers large sums 
     of cash and/or drugs during an inspection.

                     Sec. 611. Information Transfer

       This section permits the Immigration and Naturalization 
     Service to release certain confidential information on 
     individual aliens for law enforcement purposes.

                         Sec. 612. Extradition

       This section permits the Attorney General to extradite 
     persons who are not U.S. citizens, nationals, or permanent 
     residents to countries with which the United States does not 
     have an extradition treaty.

            Sec. 613. Federal Bureau Of Investigation Report

       This section requires the FBI to investigate and report 
     back to Congress on the effectiveness of a federal law 
     prohibiting
     contributions to terrorist organizations or their ``front'' 
groups in the United States.SEC. 614. Increased Penalties for Terrorism 
                                Crimes.

       This section increases penalties for a series of federal 
     crimes, including amending the law against maiming and 
     disfiguring to include torture and punishing an attempt to 
     violate this section by up to $10,000 and/or 10 years, and 
     adds protection to armed services personnel.

  SEC. 615. Criminal Offenses Committed Outside The United States By 
                 Persons Accompanying The Armed Forces.

       This section permits the removal for prosecution in the 
     United States of criminal cases involving non-military 
     persons who are accompanying the Armed Forces when they 
     commit crimes overseas which are not prosecuted in the host 
     country's courts.


           TITLE VII--MISCELLANEOUS AND TECHNICAL PROVISIONS

              Subtitle A--Elimination of Certain Programs.

             SEC. 701. Elimination Of Ineffective Programs.

       This section repeals the most 1994 Crime Bill's wasteful 
     social spending, including subtitles A through S and 
     subtitles U and X of Title III of the 1994 Crime Bill, and 
     Title V of the 1994 Crime Bill. The provisions of the 1994 
     Bill relating to Substance Abuse Treatment in Federal 
     Prisons, the Prevention, Diagnosis, and Treatment of 
     Tuberculosis in Correctional Institutions, and the Violence 
     Against Women Act are unaffected by this section.

        Subtitle B--Amendment Relating to Violent Crime Control.

        SEC. 711. Violent Crime and Drug Emergency Areas Repeal.

       This section repeals the Violent Crime and Drug Emergency 
     Areas Act in the 1994 Crime Bill (Section 90107). The 
     repealed provision permits the President to designate an area 
     a violent crime or drug emergency area, and to detail federal 
     law enforcement personnel to assist state and local 
     officials.

   SEC. 712. Expansion of 18 U.S.C. 1959 To Cover Commission Of All 
Violent Crimes in Aid of Racketeering Activity And Increased Penalties.

       This section closes loopholes in 18 U.S.C. 1959, the law 
     punishing violent crimes in aid of racketeering. The 
     amendment also increases the maximum penalties for certain 
      [[Page S95]] violations (e.g., kidnapping, conspiring to 
     commit murder), and clarifies the definition of ``serious 
     bodily injury.''

              SEC. 713. Investigation Of Serial Killings.

       This section authorizes the Federal Bureau of 
     Investigation, at the request of state authorities, to 
     participate in the identification and apprehension of serial 
     killers.

             SEC. 714. Firearms and Explosives Conspiracy.

       This section amends the firearms and explosives chapter of 
     Title 18 to provide generally that a conspiracy to commit a 
     firearms or explosives offense in punishable by the same 
     maximum term as that applicable to the substantive offense 
     that was the object of the conspiracy.

   SEC. 715. Increased Penalties For Violence In The Course Of Riot 
                               Offenses.

       This section strengthens the federal anti-riot statute, 18 
     U.S.C. 2101, by increasing the penalties when death or 
     serious bodily injury results from the defendant's actions in 
     violation of the statute.

 SEC. 716. Pretrial Detention For Possession Of Firearms or Explosives 
                          by Convicted Felons.

       Clarifies law that permits pretrial detention for certain 
     offenses to include those involving firearms or explosives.

 SEC. 717. Elimination Of Unjustified Scienter Element For Carjacking.

       Eliminates scienter requirement in 18 U.S.C. 2119, the so-
     called carjacking statute.

                      SEC. 718. Theft Of Vessels.

       Defines ``vessel'' as watercraft for purposes of 18 U.S.C. 
     2311, 2312, 2323, and criminalizes the theft of such a 
     ``vessel.''

 SEC. 719. Clarification of Agreement Requirement For RICO Conspiracy.

       Technical amendment that explains that government need not 
     prove that RICO defendant personally agreed to commit any 
     criminal racketeering acts.

SEC. 720. Addition Of Attempt Coverage For Interstate Domestic Violence 
                               Coverage.

       Creates ``attempts'' crime in interstate domestic abuse 
     cases.
 SEC. 721. Addition Of Foreign Murder As A Money Laundering Precedent.

       Adds murder as a money laundering predicate act.

        SEC. 722. Assaults Or Other Crimes Of Violence For Hire.

       Includes serious assaults in the ``murder for hire'' 
     statute, 18 U.S.C. 2332.

       SEC. 723. Threatening To Use A Weapon Of Mass Destruction.

       Criminalizes a threat to use a weapon of mass destruction.

                    SEC. 724. Technical Amendments.

       Amends section 60002 of the 1994 Crime Bill to eliminate 
     State participation in carrying out a Federal sentence of 
     death and directing that death sentences be carried out at 
     appropriate Federal facilities.

       Subtitle C--Amendments Relating To Courts And Sentencing.

    SEC. 731. Allowing A Reduction Of Sentence For Providing Useful 
       Information Although Not Regarding A Particular Individual

       Permits a reduction in a sentence if the defendant provides 
     substantial assistance in the investigation of ``any 
     offense,'' rather than only allowing reductions when the 
     defendant provides information in the investigation of 
     ``another person.''

  SECS. 732-733. These sections permit the Government to appeal from 
  certain dismissals and eliminate the outmoded requirement that the 
               Government obtain a certificate to appeal.

 SEC. 734. Clarifies meaning of ``official detention'' for purposes of 
  crediting a defendant for prior custody. Excludes credit given for 
       detention at ``community-based treatment or correctional 
                            facilit[ies].''

     SEC. 735. Limitation On Reduction Of Sentence For Substantial 
                        Assistance Of Defendant.

       Requires that a court may order a reduction in the 
     defendant's sentence for substantial assistance only when the 
     Government requests such a reduction.

       SEC. 736. Improvement Of Hate Crimes Sentencing Procedure.

       Requires the sentencing judge, as opposed to the jury, to 
     determine the facts relating to the ``hate crimes'' 
     enhancement.

   SEC. 737. Clarification Of Length Of Supervised Release Terms In 
                      Controlled Substance Cases.

       Technical amendment that clarifies the length of supervised 
     release terms in controlled substance cases. Resolves 
     conflict among the courts of appeals to make clear that the 
     limits of 18 U.S.C. 3583 do not control the longer supervised 
     release terms provided in 18 U.S.C. 841.

SEC. 738. This section confers authority on courts to impose a sentence 
    of supervised release on a prisoner who is released because of 
   ``extraordinary and compelling reasons'' (e.g., suffering from a 
         terminal illness) pursuant to 18 U.S.C. 3582(c)(1)(A).

 SEC. 739. Temporarily extends Parole Commission beyond its presently 
 scheduled expiration date of November 1, 1997, to deal with prisoners 
      sentenced before the Sentencing Guidelines became effective.

    SEC. 740. Conforming Amendments Relating To Supervised Release.

       Technical amendments that conform certain statutes with the 
     new supervised release scheme.

 SEC. 741. Repeals outmoded provisions that bar Federal prosecution of 
                           certain offenses.

                 Subtitle D--Miscellaneous Amendments.

   SEC. 751. Technical conforming amendment to obstruction of civil 
                     investigative demand statute.

 SEC. 752. Addition Of Attempted Theft And Counterfeiting Offenses To 
            Eliminate Gaps And Inconsistencies In Coverage.

       Creates attempt crimes for embezzlement, uttering, and 
     counterfeiting offenses.

   SEC. 753. Technical amendment that clarifies scienter element for 
      receiving property stolen from Indian tribal organizations.

SEC. 754. Larceny Involving Post Office Boxes And Postal Stamp Vending 
                               Machines.

       Amends 18 U.S.C. 2115 to cover vandalism committed against 
     postal vending machines and boxes not located on postal 
     service property.
 SEC. 755. Technical amendment that conforms law punishing obstruction 
 of justice by notification of a subpoena for records in certain types 
                           of investigations.

SEC. 756. This section closes a loophole in the offense of altering or 
 removing a motor vehicle identification number by protecting against 
  the alteration of any number inscribed on a car that can be used to 
                 identify a particular vehicle or part.

     SEC. 757. Application of Various Offenses To Possessions And 
                              Territories.

       A number of federal statutes are ambiguous as to their 
     coverage of crimes occurring in the territories, possessions, 
     and commonwealths of the United States because they contain 
     references to ``state'' law without any indication of whether 
     they apply to territories or other non-state entities. This 
     section merely clarifies the application of certain federal 
     criminal statutes to territories, possessions, and 
     commonwealths.

  SEC. 758. This section adjusts and makes uniform the dollar amounts 
  used in Title 18 to distinguish between grades of offenses. It also 
        adjusts certain dollar amounts to account for inflation.

   SEC. 759. This section corrects an inconsistency in the penalties 
 relating to marijuana plants that exists between 21 U.S.C. 841(b) and 
   21 U.S.C. 960(b). The amendment follows the recommendation of the 
 United States Sentencing Commission in that in cases involving 50 or 
 more marijuana plants, each plant is treated as the equivalent of one 
                    kilogram of processed marijuana.

                  SEC. 760. Access to Certain Records.

       This amendment to the cable television subscriber law 
     brings that statute into conformity with all other federal 
     customer privacy provisions, by recognizing an exception for 
     information sought pursuant to a federal grant jury subpoena 
     or a court order relating to a grand jury proceeding.

SEC. 761. Clarification Of Inapplicability of 18 U.S.C. 2515 To Certain 
                              Disclosures.

       This section makes a carefully limited exception to 18 
     U.S.C. 2515, the statutory exclusionary rule for Title III of 
     the Omnibus Crime Control and Safe Streets Act of 1968, so as 
     to exempt situations in which private persons, not acting for 
     any government authority, illegally recorded a communication, 
     but the recording later lawfully comes into the possession of 
     the government. This section permits the government to use 
     such recordings at trial.

 SEC. 762-763. These sections include conforming amendments related to 
   the enactment of the 1994 Crime Bill and certain other technical 
                              amendments.

SEC. 764. A standard severability provision that applies to the entire 
                                  act.
  Mr. HATCH. Mr. President, I thank my friend from Kansas, the 
distinguished majority leader, for his kind words. I am pleased to join 
him in introducing S. 3, the Violent Crime Control and Law Enforcement 
Improvement Act of 1995. We have worked hard together to craft a bill 
that will give the American people the tough anti-crime legislation 
they deserve.
  The people of Utah and across our Nation understand that the best 
crime prevention program is to ensure the swift apprehension of 
criminals and their certain and lengthy imprisonment. Congress can do 
better than the legislation it passed last year.
  Our Nation's violent crime problem continues to be the top concern of 
the American people and rightly so. The crime clock is still ticking, 
and is ticking faster for violent crimes. In 1992, on average, a 
violent crime was committed every 22 seconds. According to the Uniform 
Crime Reports recently published by the FBI in 1993 a violent crime was 
committed every 16 seconds.
  The latest data demonstrate that our violent crime crisis continues 
to worsen. According to the FBI, the murder rate in the United States 
increased 2.2 percent in 1993. And, for the first time, a murder victim 
was more likely to be killed by a stranger than by an acquaintance or a 
family member. (Crime 
 [[Page S96]] in the United States 1993, Uniform Crime Reports.)
  The FBI also reports that there were 104,806 rapes in the United 
States reported in 1993. And while that is a slight decrease from the 
previous year, this number is still a 5 percent increase since 1989. 
(Crime in the United States 1993, Uniform Crime Reports.)
  Additionally, the National Crime Victimization Survey, which is 
published by the Bureau of Justice Statistics and includes crimes not 
reported to the police, found that crimes of violence increased 4.5 
percent in 1993, including a staggering 10.2 percent rise in aggravated 
assault and a 12.2 percent jump in attempted assaults with a weapon. 
(National Crime Victimization Survey, Table of Selected Data, BJS, 
October 1994.)
  Moreover, this is not a crisis that affects only our Nation's urban 
centers. Indeed, some of the most rapid increases in crime are 
occurring in the Intermountain West, which includes my State of Utah. 
Overall, the Intermountain West experienced a 7.5 percent increase in 
violent crimes, and a 4.7 percent increase in the number of violent 
crimes per 100,000 persons in 1993 according to the FBI. Figures for 
Utah are nearly as grim. Our violent crime rate in Utah jumped 6.3 
percent in 1993, and the rate per 100,000 persons jumped 3.6 percent. 
(Crime in the United States 1993, Uniform Crime Reports.) So while our 
population is rising, violent crime is rising even faster.
  Thus, the specter of violent crime haunts the lives of most Americans 
and dramatically affects the way in which we live. Concern for personal 
safety and fear of violent crime cuts across racial and socioeconomic 
lines. In fact, violent crime disproportionately affects minorities and 
the poor. African-Americans are far more likely to be victims of crime 
than are many other Americans; in 1992 African-Americans suffered 
violent crime victimizations at a rate of 110.8 per 1,000 population, 
compared to 88.7 per 1,000 whites. (Source: BJS Bulletin, Criminal 
Victimization 1992)
  It is a national tragedy that homicide is now the leading cause of 
death for African-America males aged 15 to 34. And low-income 
households are victimized by crime at almost twice the rate of more 
affluent households.
  A responsible approach to the crime problem that includes sentencing 
reforms, increased funds for police and prisons, and changes in Federal 
criminal procedure, will provide the greatest benefits to the greatest 
number in our society.
  This body has spent countless hours on this issue. Yet the result of 
those efforts, the 1994 crime bill, fell far short of what the American 
peole deserve. That bill wasted billions on duplicative social spending 
programs, devoted insufficient resources to the needed emergency build-
up in prison space, created an unwieldy grant program which will fall 
far short of its stated goal of actually placing 100,000 additional 
State and local police officers on our streets, and failed to enact 
tough penalties for Federal violent and drug crimes.
  Now the American people expect us begin the task anew, and battle 
crime with a program that holds criminals responsible for their acts 
and that begins to help State and local governments repair the rips in 
our social fabric that have contributed to our
 crime crisis.

  The bill we introduce today has four primary objectives:
  Increasing prison and law enforcement grants to the States to assist 
their efforts to deter and apprehend violent criminals, and to ensure 
that, when a criminal defendant is convicted, appropriate sentences are 
imposed and served;
  Removing the wasteful social spending included in the 1994 crime bill 
and redirecting the funds to prison construction and Federal, State and 
local law enforcement, thus enabling our States and local communities 
to implement crime control strategies free from the interference of 
Washington bureaucrats;
  Enhancing Federal criminal penalties to appropriate levels for 
terrorism and other crimes where the Federal Government has a 
significant legitimate prosecutorial role; and
  Reforming habeas corpus procedures, the exclusionary rule, and other 
Federal criminal procedures to restore fairness and balance to the 
Federal criminal justice process.
  To accomplish these objectives, our bill first increases the amount 
authorized for prison grants to States and ensures that these grants 
will be used for the construction and operation of brick-and-mortar 
prisons. The bill removes conditions requiring the States to adopt 
specified corrections plans in order to qualify for the Federal funds.
  It also improves upon the reforms already made to reduce the flood of 
frivolous lawsuits by prisoners by adopting provisions passed last year 
by our House colleagues. These provisions remove the limits on a 
court's ability to stay prisoner litigation while administrative 
remedies are being exhausted, allow the courts to dismiss frivolous 
suits sua sponte, remove the requirement in current law that inmates 
participate in the formulation of the grievance procedures, and require 
inmates with assets to pay filing fees.
  Second, our legislation reforms the policing grants included in the 
1994 bill to make the program more responsive to the needs of our State 
and local governments.
  Most independent estimates of the probable effect of the Community 
Policing grant program established in the 1994 crime bill conclude that 
it will fall far short of actually placing on the street the 100,000 
new State and local police officers claimed by the provision's 
supporters. Moreover, it is open to serious question whether those who 
will be hired under the grants will be additional officers, or whether 
they will merely make up for natural attrition in our Nation's local 
police forces.
  For these reasons, I believe that the Community Policing grant 
program is flawed. Under our legislation the program would be improved 
to give the States more flexibility in spending the funds. States could 
use those funds for hiring and training police officers or establishing 
and upgrading crime laboratories or exploring new crime-fighting 
technologies.
  Unlike the grant program presently in place, there would be no 
matching requirement or per-officer spending cap, providing States and 
communities with the needed flexibility to hire and train the number of 
officers required to meet local needs. State and local governments are 
in the best position to assess their crime fighting needs. The Federal 
Government should therefore get out of their way and provide them with 
the flexibility to spend funds effectively to combat crime.
  Third, our bill enhances the resources of our Federal law enforcement 
agencies. While much of the Nation's war on crime is fought at the 
State and local level, the Federal Government has a significant role to 
play. It is critical that Federal law enforcement agencies be provided 
with the resources to fulfill their duty to the American people.
  For this reason, our bill includes authorization for critically 
needed funding for Federal law enforcement above what was authorized in 
the 1994 crime bill. This will ensure the ability of Federal law 
enforcement agencies to carry out their mission.
  Fourth, this bill eliminates the wasteful social programs passed in 
the 1994 crime bill. These programs would have wasted billions of 
dollars on duplicative, top-down spending programs without reducing 
violent crime. Having Washington bureaucrats impose untested programs 
on the States would do little to prevent crime.
  A portion of the funding authorized by these programs is redirected 
to prison grants, law enforcement block grants, and Federal law 
enforcement.
  Fifth, our bill also includes several tough Federal criminal 
penalties either omitted from or weakened in the 1994 crime bill. For 
instance, it includes the provisions requiring tough mandatory minimum 
sentences for Federal crimes committed with a firearm and for the sale 
of drugs to minors or the use of a minor in the commission of a drug 
crime.
  Our bill also replaces the overly broad reform of mandatory minimum 
sentences with an approach that will ensure the just imposition of 
those sentences. Thus, while providing less leeway to judges to avoid 
imposing minimum mandatory sentences than the 1994 crime bill, it 
allows such discretion where it is merited. The truly 
 [[Page S97]] first-time, nonviolent, low-level offender deserving of 
some measure of leniency will be treated more justly under our 
legislation, without providing a windfall to career drug dealers. I 
should note that our provision was overwhelmingly supported by the 
Senate in the last Congress.
  Our legislation would also enact several other Federal criminal 
penalties which the Senate passed as a part of its 1993 crime bill but 
which were not included in the enacted 1994 crime bill. Among these 
provisions are the inclusion of serious juvenile drug offenses as 
predicate crimes under the Armed Career Criminal Act and the adult 
prosecution of serious juvenile offenders in appropriate Federal cases.
  Sixth, our legislation would enact long-needed reforms to the Federal 
criminal justice system. Chief among these is a reform of habeas corpus 
procedures to ensure that lawful sentences of death are not perpetually 
delayed by endless, meritless appeals, while at the same time 
safeguarding the legitimate rights of defendants to ensure that the 
death penalty is not unjustly imposed.
  Additionally, our bill would enact reforms to ensure the 
admissibility of certain evidence. Confessions voluntarily made will be 
admitted regardless of irrelevant surrounding circumstances. The 
present exclusionary rule will be eliminated and replaced with a tort 
remedy to protect the rights of law-abiding persons. Under this 
proposal, evidence discovered and seized by officers acting in good 
faith that their actions comported with the requirements of the fourth 
amendment will be admitted in court.
  At the same time, our exclusionary rule reform will also provide new 
remedies for redress by innocent persons whose fourth amendment rights 
are violated. Those whose rights are violated by Federal law 
enforcement officers will have expanded rights to sue the offending 
agency for damages. Our reform will thus create the necessary 
disincentive contemplated by the fourth amendment for lawless searches 
without providing guilty defendants the windfall of the exclusion of 
relevant evidence. These reforms are critical if we are to prevent our 
cherished liberties from further devolving into merely a cynical shield 
for the guilty to avoid just punishment.
  The legislation also includes provisions for obstruction of justice 
penalties for attorneys who knowingly file false statements in court in 
criminal proceedings, and to equalize, except in cases in which 
defendants are tried jointly, the number of peremptory challenges 
available to each side in a criminal case.
  We also include in our bill provisions for restitution to victims of 
Federal crimes to insure that crime victims receive the restitution 
they are due from those who have preyed on them.
  Seventh, our bill addresses the threat of terrorism against our 
people. Our bill incorporates most of the antiterrorism provisions of 
the 1993 Senate crime bill that were stricken during conference, 
including the Terrorist Alien Removal Act, and criminal penalties for 
the willful violation of regulations for the safety of civil aviation. 
Additionally, our bill updates and strengthens criminal penalties for 
engaging in certain violent terrorist acts.
  Finally, our bill includes numerous miscellaneous and technical 
provisions to strengthen and clarify existing Federal law.
  With this legislation, we have an opportunity to fulfill our 
commitment to the American people in a way which respects the 
competencies and powers of the State and Federal spheres of Government. 
Additionally, we are committed to ensuring that this legislation does 
not increase the Federal deficit. We believe that our bill provides the 
American people the crime control legislation they demand and deserve. 
I urge the support of my colleagues for this important legislation.
                                 ______

      By Mr. DOLE (for himself, Mr. McCain, Mr. Coats, Mr. Kyl, Mr. 
        Helms, Mr. Murkowski, Mr. Ashcroft, Mr. Bond, Mr. Grams, and 
        Mr. Gramm):
  S.4. A bill to grant the power to the President to reduce budget 
authority; to the Committee on the Budget and the Committee on 
Governmental Affairs, jointly, pursuant to the order of August 4, 1977, 
with instructions that if one committee reports, the other committee 
has 30 days to report or be charged.


               THE LEGISLATIVE LINE-ITEM VETO ACT OF 1995

  Mr. DOLE. Mr. President, I rise today to introduce legislation 
designed to give President Clinton the same tool to control spending 
that 41 Governors now enjoy. I am talking about the line-item veto.
  Republicans have supported giving the President the line-item veto 
for years. During the 1980's, opponents of the line-item veto used to 
say that Republicans supported it only because the President happened 
to be a Republican at that time.
  By introducing this bill as Senate bill No. 4, and making adoption of 
a legislative line-item veto a top priority for the 104th Congress, we 
hope to dispel that myth once and for all. We believe that any 
President of the United States, as Chief Executive, should be given 
more power over Federal spending.
  This legislation would give the President the authority to rescind 
any combination of line items in an appropriations bill. The 
President's rescission proposal would take effect until a two-thirds 
majority in both Houses of Congress votes to overturn the President's 
decision.
  Mr. President, several of our colleagues have worked long and hard on 
this issue. The distinguished Senator from Indiana [Senator Coats] and 
the distinguished Senator from Arizona [Senator McCain] have worked 
tirelessly in support of this legislation for years. Each time the 
Senate has voted on the line-item veto, we have been able to garner a 
few more votes.
  This may well be the year that we finally get the job done. I am 
pleased to report that the distinguished Chairman of the Budget 
Committee, Senator Domenici, has agreed to schedule a committee hearing 
and a mark-up on line-item veto legislation later this month. My hope 
is that working with the members of that committee--Democrat and 
Republican--Chairman Domenici will be able to get legislation adopted 
in committee and to the Senator floor that can serve as the blueprint 
for line-item veto legislation that can be approved by the full Senate, 
adopted in both Houses of Congress, and signed into law by the 
President this year.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
                                  S. 4

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Legislative Line Item Veto 
     Act of 1995.''

     SEC. 2. ENHANCEMENT OF SPENDING CONTROL BY THE PRESIDENT.

       The Impoundment Control Act of 1974 is amended by adding at 
     the end thereof the following new title:

      ``TITLE XI--LEGISLATIVE LINE ITEM VETO RESCISSION AUTHORITY

       ``Part A--Legislative Line Item Veto Rescission Authority


                  ``grant of authority and conditions

       ``Sec. 1101. (a) In General.--Notwithstanding the 
     provisions of part B of title X and subject to the provisions 
     of part B of this title, the President may rescind all or 
     part of any budget authority, if the President--
       ``(1) determines that--
       ``(A) such rescission would help balance the Federal 
     budget, reduce the Federal budget deficit, or reduce the 
     public debt;
       ``(B) such rescission will not impair any essential 
     Government functions; and
       ``(C) such rescission will not harm the national interest; 
     and
       ``(2)(A) notifies the Congress of such rescission by a 
     special message not later than 20 calendar days (not 
     including Saturdays, Sundays, or holidays) after the date of 
     enactment of a regular or supplemental appropriations Act or 
     a joint resolution making continuing appropriations providing 
     such budget authority; or
       ``(B) notifies the Congress of such rescission by special 
     message accompanying the submission of the President's budget 
     to Congress and such rescissions have not been proposed 
     previously for that fiscal year.

     The President shall submit a separate rescission message for 
     each appropriations bill under paragraph (2)(A).
       ``(b) Rescission Effective Unless Disapproved.--(1)(A) Any 
     amount of budget authority rescinded under this title as set 
     forth in a special message by the President shall be deemed 
     canceled unless during the period described in subparagraph 
     (B), a rescission disapproved bill making available all of 
     the amount rescinded is enacted into law.
       ``(B) The period referred to in subparagraph (A) is--
       [[Page S98]] ``(i) a Congressional review period of 20 
     calendar days of session under part B, during which Congress 
     must complete action on the rescission disapproval bill and 
     present such bill to the President for approval or 
     disapproval;
       ``(ii) after the period provided in clause (i), an 
     additional 10 days (not including Sundays) during which the 
     President may exercise his authority to sign or veto the 
     rescission disapproval bill; and
       ``(iii) if the President vetoes the rescission disapproval 
     bill during the period provided in clause (ii), an additional 
     5 calendar days of session after the date of the veto.
       ``(2) If a special message is transmitted by the President 
     under this section during any Congress and the last session 
     of such Congress adjourns sine die before the expiration of 
     the period described in paragraph (1)(B), the rescission 
     shall not take effect. The message shall be deemed to have 
     been retransmitted on the first day of the succeeding 
     Congress and the review period referred to in paragraph 
     (1)(B) (with respect to such message) shall run beginning 
     after such first day.
                             ``DEFINITIONS

       ``Sec. 1102. For purposes of this title the term 
     `rescission disapproval bill' means a bill or joint 
     resolution which only disapproves a rescission of budget 
     authority, in whole, rescinded in a special message 
     transmitted by the President under section 1101.

  ``Part B--Congressional Consideration of Legislative Line Item Veto 
                              Rescissions


                     ``PRESIDENTIAL SPECIAL MESSAGE

       ``Sec. 1111. Whenever the President rescinds any budget 
     authority as provided in section 1101, the President shall 
     transmit to both Houses of Congress a special message 
     specifying--
       ``(1) the amount of budget authority rescinded;
       ``(2) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       ``(3) the reasons and justifications for the determination 
     to rescind budget authority pursuant to section 1101(a)(1);
       ``(4) to the maximum extend practicable, the estimated 
     fiscal, economic, and budgetary effect of the rescission; and
       ``(5) all facts, circumstances, and considerations relating 
     to or bearing upon the rescission and the decision to effect 
     the rescission, and to the maximum extent practicable, the 
     estimated effect of the rescission upon the objects, 
     purposes, and programs for which the budget authority is 
     provided.


                ``TRANSMISSION OF MESSAGES; PUBLICATION

       ``Sec. 1112. (a) Delivery to House and Senate.--Each 
     special message transmitted under sections 1101 and 1111 
     shall be transmitted to the House of Representatives and the 
     Senate on the same day, and shall be delivered to the Clerk 
     of the House of Representatives if the House is not in 
     session, and the Secretary of the Senate if the Senate is not 
     in session. Each special message so transmitted shall be 
     referred to the appropriate committees of the House of 
     Representatives and the Senate. Each such message shall be 
     printed as a document of each House.
       ``(b) Printing in Federal Register.--Any special message 
     transmitted under sections 1101 and 1111 shall be printed in 
     the first issue of the Federal Register published after such 
     transmittal.


                         ``PROCEDURE IN SENATE

       ``Sec. 1113. (a) Referral.--(1) Any rescission disapproval 
     bill introduced with respect to a special message shall be 
     referred to the appropriate committees of the House of 
     Representatives or the Senate, as the case may be.
       ``(2) Any rescission disapproval bill received in the 
     Senate from the House shall be considered in the Senate 
     pursuant to the provisions of this section.
       ``(b) Floor Consideration in the Senate.--
       ``(1) Debate in the Senate on any rescission disapproval 
     bill and debatable motions and appeals in connection 
     therewith, shall be limited to not more than 10 hours. The 
     time shall be equally divided between, and controlled by, the 
     majority leader and the minority leader or their designees.
       ``(2) Debate in the Senate on any debatable motion or 
     appeal in connection with such a bill shall be limited to 1 
     hour, to be equally divided between, and controlled by, the 
     mover and the manager of the bill, except that in the event 
     the manager of the bill is in favor of any such motion or 
     appeal, the time in opposition thereto shall be controlled by 
     the minority leader or his designee. Such leaders, or either 
     of them, may, from the time under their control on the 
     passage of the bill, allot additional time to any Senator 
     during the consideration of any debatable motion or appeal.
       ``(3) A motion to further limit debate is not debatable. A 
     motion to recommit (except a motion to recommit with 
     instructions to report back within a specified number of 
     days, not to exceed 1, not counting any day on which the 
     Senate is not in session) is not in order.
       ``(c) Point of Order.--(1) it shall not be in order in the 
     Senate or the House of Representatives to consider any 
     rescission disapproval bill that relates to any matter other 
     than the rescission of budget authority transmitted by the 
     President under section 1101.
       ``(2) It shall not be in order in the Senate or the House 
     of Representatives to consider any amendment to a rescission 
     disapproval bill.
       ``(3) Paragraphs (1) and (2) may be waived or suspended in 
     the Senate only by a vote of three-fifths of the members duly 
     chosen and sworn.''.
  Mr. McCain. Mr. President, I am pleased to join Majority Leader Dole, 
Senator Coats, and many others in introducing the Legislative Line-Item 
Veto of 1995.
  Mr. President, this is the same bill that I have sponsored for the 
last 8 years. However, I would like to describe the bill again at this 
time. The bill would do:
  (1) It gives the President the power to identify, up to 20 days after 
an appropriations bill is sent to the President for his signature, 
items of spending within that bill that are wasteful, and to notify 
Congress that the President is eliminating or reducing the funds for 
those items.
  (2) The President may veto--or in other words freeze--part or all of 
the funds for programs deemed wasteful.
  (3) Such items are called enhanced rescissions or more commonly 
referred to as line-item vetoes.
  (4) The Congress is required to overturn these line-item vetoes with 
simply majority votes in the House and Senate within 20 days or they 
automatically become effective.
  (5) If the Congress disagrees with the President, it may pass a 
rescission disapproval bill.
  (6) The President then has the opportunity to veto the rescission 
disapproval bill. In that case, the veto may be overridden by a two-
thirds vote of the House and Senate.
  (7) This bill would also allow the President a second chance to 
eliminate wasteful pork-barrel spending by allowing him to submit such 
enhanced
 rescissions with the budget submission at the beginning of the year. 
This second shot at proposing rescission ensures that the President has 
the opportunity to strike at pork-barrel spending that may not be 
obvious during the first rescission period.

  Mr. President, this bill would not: allow the President to rescind 
money for entitlement like Social Security, Medicaid, or food stamps.
  The bill amends part B of title X of the Impoundment Control Act of 
1974. It does not amend part A of title X of the Impoundment Control 
Act of 1974. The language from part A of title X is retained. It 
specifies that:

       Nothing contained in this Act, or in any amendment made by 
     this Act, shall be construed as * * * superseding any 
     provision of law which requires the obligation of budget 
     appropriation or the making of outlays thereunder.''

  This language from part A of title X ensures that the President 
cannot rescind funds for entitlement.


       the growing problem of pork-barrel politics and the budget

  Mr. President, pork-barrel politics is nothing new. However, the 
Congress' addiction to pork has grown to obscene proportions. Something 
must be done and something must be done now.
  For too long the Congress has addressed this issue by maintaining the 
status quo. In the meantime, our addiction was growing and growing.
  And Mr. President, while we are ``getting our pork fix'' our children 
are being raised in a Nation that may soon have no choice but to go 
cold turkey. But Mr. President, it is not pork alone that is cause this 
problem. Pork is only one small part of the illness.
  The disease that plagues us is our budget and spending habits.
  If we continue funding carelessly and recklessly ignore budgetary 
constraints and economic realities--if we continue to ignore this 
problem--we risk our Nation's future.
  Mr. President, let us review the facts regarding our Nation's fiscal 
health.
  The Federal debt is approaching $4 trillion.
  The cost of interest on that debt is now almost $200 billion a year. 
That is more money than the Federal Government will spend on education, 
science, law enforcement, transportation, food stamps, and welfare 
combined.
  The Federal budget deficit set a record of $290 billion in 1992.
  By 2003, the deficit is expected to leap to a staggering $653 billion 
and will have reached its largest fraction of gross domestic product in 
more than 50 years.
  [[Page S99]] Mr. President, we must act to restore budgetary 
restraint in the Congress. An analysis of the past shows that after 
each of the last major budget deals, the deficit in fact increased, 
spending increased, and taxes increased. We must avoid this cycle.
  If we are to avoid a repeat of the Carter and Bush years, we must 
work toward real budgetary reform that truly curbs spending. This is a 
considerable undertaking that will involve asking all, including many 
powerful coalitions, that they will have no choice but to do more with 
less. The control of the Nation's purse will become even more fierce if 
we instituted budgetary reform and limit spending.
  One aspect of this is to give the President the line-item veto.


                   RECOGNIZING THE CONGRESS' DISEASE
  Mr. President, if we are to take control of the budget process we 
must move bravely forward and be prepared to make many difficult 
choices.
  Now is the time to rise above petty politics and turf wars. We must 
put institutional pride aside. And most importantly, we must put the 
local-specific needs of each of our constituents aside and look at the 
Nation as a whole. Now, Mr. President, is the time for statesmen.
  We must reinstitute budgetary restraint and take firm action to 
control spending. This will involve implementing specific strategies 
and standing behind a commitment to decrease spending--no matter what 
the political climate. This will involve accepting one set of budgetary 
goals and not allowing them to float or be adjusted.
  Mr. President, one glaring example of this lack of backbone is the 
now altered Gramm-Rudman-Hollings deficit targets. The Congress had 
sought when it passed the Gramm-Rudman-Hollings Act to impose mandatory 
spending caps on the Congress. During recent years, however, these 
fixed budget targets have become significantly relaxed.
  Mr. President, when push came to shove, the Congress allowed these 
ceilings to be altered. Due to the pressure of Gramm-Rudman-Hollings on 
the Congress to curtail its spending, the Congress curtailed Gramm-
Rudman-Hollings. As a result, the 1990 Budget Act was passed and new 
higher targets were established.
  Now, 4 years into that agreement, deficits and spending are being 
allowed to spiral out of control without penalty. The outlook for the 
future looks even worse: massive cuts in defense, huge tax increases, 
and an increase in domestic spending. The problem of the deficit, 
although often mentioned in high political rhetoric, is not addressed 
and allowed to grow.


       the line-item veto as part of the solution: process reform

  The only solution to our budgetary problems and our profligate
   spending habits is substantial process reform. One key aspect of 
that process reform must be the line-item veto. Mr. President for those 
who say there is no need for the line-item veto, I implore you to open 
your eyes to the facts. Like all addicts, we are afraid to admit our 
own problem.

  But others have recognized our problems.
  Ross Perot on Good Morning America stated:

       * * * There's every reason to believe that if you give the 
     Congress more money, it's like giving a friend who's trying 
     to stop drinking a liquor store. The point is they will spend 
     it. They will not use it to pay down the debt. If you don't 
     get a balanced budget amendment, if you don't get a line-item 
     veto for the president, we might as well take this money out 
     to the edge of town and burn it, because it'll be thrown 
     away.

  Governor Clinton on Larry King Live:

       We ought to have a line-item veto.

  Candidate Bill Clinton in Putting People First:

       Line-Item Veto. To eliminate pork-barrel projects and cut 
     government waste, I will ask Congress to give me the line-
     item veto.

  President Bill Clinton in his Inaugural Address:

       Americans deserve better * * * so that power and privilege 
     no longer shout down the voice of the people. Let us put 
     aside personal advantage so that we can feel the pain and see 
     the promise of America. Let us give this Capitol back to the 
     people to whom it belongs.

  According to the CATO Institute, December 9, 1992, Policy Analysis:

       Ninety-two percent of the governors believe that a line-
     item veto for the President would help restrain federal 
     spending. Eighty-eight percent of
      the Democratic respondents believe the line-item veto would 
     be useful.
       America's governors and former governors have a unique 
     perspective on budget reform issues. Most of them have had 
     practical experience with the line-item veto and balanced 
     budget requirement in their states. The fact that most 
     governors have found those budget tools useful in restraining 
     deficits and unnecessary government spending suggests that 
     they may be worth instituting on the federal level.

  Additionally from the CATO Institute Study:
  Keith Miller (R), former Governor, AK:

       The line-item veto is a useful tool that a governor can use 
     on occasion to eliminate blatantly ``pork barrel'' 
     expenditures that can strain a budget. At the same time he 
     must answer to the voters if he or she uses the veto 
     irresponsibly. It is a certain restraint on the legislative 
     branch.

  Michael Dukakis (D), former Governor, MA:

       The line item veto is helpful in stopping efforts to add 
     riders and other extraneous amendments to the budget bill.

  L. Douglas Wilder (D), Governor, VA:

       To the detriment of the federal process, the President is 
     not held accountable for a balanced budget. Congress takes 
     control over budget development with its budget resolution, 
     after which, the President may only approve or veto 13 
     appropriations bills. Without the line item veto the 
     President has minimal flexibility to manage the federal 
     budget after it is passed.
  S. Ernest Vandiver (D), former Governor, GA:

       Tremendous tool for saving money.

  Ronald Reagan (R), former Governor, CA, former President:

       When I was governor in California, the governor had the 
     line-item veto, and so you could veto parts of a bill. The 
     President can't do that. I think, frankly--of course, I'm 
     prejudiced--government would be far better off if the 
     President had the right of line-item veto.

  The U.S. Chamber of Commerce:

     supports the McCain bill or similar legislation providing for 
     line item veto/enhanced rescission authority, as a means of 
     curbing excessive and wasteful government spending, to 
     provide for better prioritization of scarce resources, and to 
     encourage deficit reduction without tax increases.


                     the greater threat of inaction

  Mr. President, many have characterized this legislation as a 
dangerous ploy, not as a true budgetary reform. This is not accurate 
and does not take into account the greater picture of the dangers 
presented by our out of control budget process.
  What is dangerous is what is happening to the effective 
administration of the American Government. Pork-barrel spending is 
threatening our national security and consuming resources that could 
better be spent on tax cuts, deficit reduction, or health care.
  I do not make the charge that pork-barrel spending is threatening our 
national security without a great deal of consideration. After last 
year's defense appropriation bill, it is unfortunately clear how 
dangerous pork-barrel spending can be to our national security. It 
should now be clear how urgent the need for the line-item veto is.
  At a time when thousands of men and women who volunteered to
  serve their country have to leave military service because of 
changing priorities and declining defense budgets, we nonetheless are 
able to find money for $6.3 billion of pork in the defense 
appropriation bill. At a time when we need to restructure our forces 
and manpower to meet our post-cold war military needs, we squandered 
$6.3 billion of pointless projects with no military value like engines 
that will never by used, military museums, studies of military stress 
on families, military physical fitness centers, and even 
supercomputers. This $6.3 billion of pork is impairing our national 
  security and harming our society.Mr. President, every Congressman or 
Senator wants to get projects for his or her district. It is an 
institutional problem. I am not a saint. There are no saints in the 
City of Satan, but I am trying. I am trying to change a system that has 
failed. I am trying to make a difference. I am not here to cast 
aspersions on other Senators who secured pork-barrel projects for their 
States. I am not here to start a partisan fight.
  I am here trying to reform Congress. It is a Congress that has piled 
up $3.7 trillion in debt. It is a Congress that is responsible for a 
$400 billion deficit this year. It is a Congress that has miserably 
failed the American people. It is an institution that desperately needs 
reform.
  [[Page S100]] Anyone who feels that the system does not need reform 
need only examine the trend in level of our public debt. As I have 
stated in my analysis of the most recent budget plans, the deficit has 
continued to grow and spending continues to increase. In 1960, the 
Federal debt held by the public was $236.8 billion. In 1970, it was 
$283.2 billion. In 1980, it was $709.3 billion. In 1990, it was $3.2 
trillion, and it is expected to surpass $4 trillion this year.
  My colleagues may ask: Why is the line-item veto so important?
  Because a President with a line-item veto could held stop the waste. 
Because a President with a line-item veto could play an active role in 
ensuring that valuable taxpayer dollars are spent effectively to meet 
our national security needs, our infrastructure needs, and other social 
needs without pointless pork-barrel spending.
  According to a recent General Accounting Office [GAO] study, $70 
billion could have been saved between 1984 and 1989, if the President 
had a line-item veto.
  It is important because it can help reduce the deficit. It can change 
the way Washington operates. Mr. President, we cannot turn a blind eye 
to unnecessary spending when we cannot meet the needs of our service 
men and women. We cannot tolerate this kind of waste when Americans all 
over this country are experiencing economic hardship and uncertainty.
  We cannot ignore the line-item veto, when it is self-evident how 
effective it could be in reducing the deficit. We cannot ignore any 
method of saving the taxpayer's hard-earned money.
  The $6.3 billion of pork in the defense appropriation bill is not an 
insignificant sum. $6.3 billion would pay for the personnel and 
operating costs of 19,000 enlisted personnel in the Air Force for 1 
year. It would pay for the operating costs of up to 16 carrier battle 
groups for 1 year. It would pay for the operating costs of eight to 
nine fully armored army divisions. It would pay for the operating costs 
of 14 to 15 light infantry divisions for 1 year. It would pay for the 
total operation of the soon to be closed Williams Air Force Base in 
Arizona for 50 years.
  The American public deserves better than business as usual. As their 
elected representatives we have an obligation to end the practice of 
pork-barrel spending.


    return to the views of the founding father and the constitution

  Mr. President, let me remind my colleagues that a President empowered 
with a veto is the system designed by the Founding Fathers. It was not 
considered a threat to our republican form of government by the Framers 
of the Constitution.
  This bill in no way alters or violates any of the principles of the 
Constitution. It preserves wholly the right of the Congress to control 
our
 Nation's purse strings--a trust the Congress has often violated. This 
legislation, however does further the concept of checks and balances 
which is the heart of our divided government.

  The veto was designed by the Founding Fathers to ensure that the 
President had some authority to reign over an unruly legislature. As 
grade schools learn, the veto is an important aspect of the 
Constitution. At the same time, these school children learn that the 
Congress has the right to override the President. This bill does 
nothing more than embrace that Constitutional tenet.
  On the subject of the veto, according to Alexander Hamilton in 
``Federalist No. 73'' the views of the Founding Fathers on executive 
veto power are as follows:

       It [the veto] not only serves as a shield to the executive, 
     but it furnishes an additional security against the inaction 
     of improper laws. It establishes a salutary check upon the 
     legislative body, calculated to guard the community against 
     the effects of faction, precipitancy, or any impulse 
     unfriendly to the public good, which may happen to influence 
     a majority of that body.

  Given Congress' predilection for unfunded and/or pork barrel 
spending, omnibus spending bills, and continuing resolutions, it would 
seem only prudent and constitutional to provide the President with 
functional veto power.
  The President must have more than the option of vetoing a spending 
bill and shutting down Government or simply submitting to congressional 
coercion.
  Mr. President, let me emphasize that this bill is also known as 
enhanced rescission power. The Congress is not transferring power. We 
are proposing an end to business as usual. The taxpayer needs 
protection.
  Furthermore, this strictly defined and limited line-item veto will 
not
 fundamentally upset the balance of power between the executive and 
legislative branches. And, it is consistent with the values expressed 
in our Federation Constitution.

  Mr. President, criticism of the line-item veto has not stopped with 
the unfounded charge of upsetting the delicate balance of power between 
the President and Congress. Opponents claim that it would give the 
President the power to coerce the Congress. That is not true.
  This measure in no way tips the checks and balance system so 
carefully crafted into the Constitution. The President is given very 
limited power by this bill. It is limited to appropriation bills and 
only for a limited time after their passage. Congress is guaranteed the 
opportunity to quickly overturn the President's rescissions. Opponents 
may hide behind the charge of coercion, but Congress would not submit 
to presidential extortion. They would expose the President's coercion, 
and overturn any offensive rescission.
  Charges that the President would abuse this power are also misleading 
and unfounded.
  Again, I will rely upon Alexander Hamilton, who posed this question 
to his contemporaries in ``Federalist No. 73'':

       If a magistrate so powerful and so well fortified as a 
     British monarch would have scruples about the exercise of the 
     power under consideration, how much greater caution may be 
     reasonably expected in a President of the United States, 
     clothed for the short period of four years with the executive 
     authority of government wholly and purely republican?''

  To summarize, this legislation will merely require the Congress to 
recognize the President's rescissions, and help reduce wasteful 
spending. It is not a means for Presidential abuse, but a means to end 
congressional abuse. It will give the President limited power in 
controlling spending and reducing the deficit. It should be self-
evident to all Senators that controlling spending is something that the 
Congress is completely unable to do. I bring to the Senate's attention 
the $3.7 trillion
public debt as irrefutable proof of our inability to control spending.pr
          esidential power used to implement budgetary reform

  This inability to control spending was aggravated in 1974 by the 
Budget Control and Impoundment Act. If opponents of the line-item veto 
are in search of a dangerous transfer of political power, they can end 
their search with that power grab by Congress.
  Specifically, the Budget Control and Impoundment Act of 1974 weakened 
executive power by allowing the Congress the legal option of ignoring 
the spending cuts recommended by the President through simple inaction.
  Since 1974, the Congress' attitude toward Presidential rescission has 
become one of near total neglect.
  For example, President Ford proposed 150 rescissions, and Congress 
ignored 97. President Carter proposed 132 rescission, and Congress 
ignored 38. President Reagan proposed 601 recissions, and Congress 
ignored 384. President Bush has proposed 47 rescissions, and Congress 
ignored 45.
  If the Congress had accepted the 564 Presidential rescissions that it 
has ignored since 1974, $40.4 billion would have been saved. This is 
not a trivial sum to a taxpayer, even if it is to a hardened Washington 
veteran.
  The practice of ignoring Presidential rescissions is in contrast to 
the practice prior to the power grab by Congress in 1974.
  Presidents Truman, Eisenhower, Kennedy, Johnson, and Nixon all 
impounded funds that Congress had appropriated for line-item projects. 
In the most telling example of Presidential impoundment as a means of 
controlling spending, President Johnson impounded $5.3 billion for many 
of his Great Society programs during the Vietnam war to quell 
inflation.
  These modern Presidents were not alone in their exercise of 
rescission power. In 1801, President Jefferson refused to spend $50,000 
on gunboats as 
 [[Page S101]] appropriated by Congress. He, of course, had good
 reason. When the gunboats were appropriated, a war with Spain was 
considered imminent. The war never materialized, and the threat posed 
by Spain ebbed. Circumstances changed, and Jefferson thought it was 
within his power to eliminate this unnecessary spending.

  The money for gunboats was not spent, and money was not appropriated 
in 1802 for the gunboats.
  Clearly, the Union did not fall because the President refused to 
waste taxpayers' money.
  Until 1974, our Presidents had the power to decide whether 
appropriated moneys should be spent or not.
  Thus, whether through rescission, impoundment, or deferral, the 
executive branch had a significant role in spending control prior to 
the Budget Control and Impoundment Act of 1974.
  Again, Alexander Hamilton in ``Federalist No. 73'' sheds light on the 
role of executive veto power in our system of checks and balances:

       When men, engaged in unjustifiable pursuits, are aware that 
     obstructions may come from a quarter which they cannot 
     control, they will often be restrained by the apprehension of 
     opposition from doing what they would with eagerness rush 
     into if no such external impediments were to be feared. 
     ``Those opposed to this amendment should consider that pithy 
     statement, and question whether they may be simply defending 
     ``unjustifiable pursuits'' like bovine flatulence studies, 
     Abraham Lincoln Research and Interpretative Centers, 
     unauthorized spending, or projects that ``demonstrate methods 
     of eliminating traffic congestions.

  Let me return to the broader picture of process reform. Many 
opponents claim that a President with line-item veto authority would 
not have any real ability to balance the budget or even significantly 
reduce the deficit. I will make no claims that this bill is the answer 
to all our budgetary problems.
  As I earlier stated, the line-item veto is only one of many needed 
tools in our efforts to win the war. With roughly 1 trillion of 
entitlement spending in a budget of $1.5 trillion, it is clear that a 
line-item veto won't be the tool that solves all of our fiscal 
difficulties. Only a Congress with a political will not characteristic 
of recent Congress' will be able to balance the budget.
  But, a President dedicated to restraining Federal spending could use 
line-item veto power as an effective toll to reduce Government spending 
and move closer to a balanced budget than we are today.
  The GAO study makes my point. A President with line-item veto 
authority could have saved the American taxpayer $70 billion since 
1974.
  A determined President may not be able to balance the budget--only 
the voters can ultimately control Congress--but a determined President 
could make substantial progress toward real spending reduction.
  A President with line-item veto authority could have played an active 
role in deficit reduction, and could have mitigated some of the fiscal 
dilemma our Nation now faces.
  As we continue to face enormous budget deficits and annually search 
for ways to reduce spending, it seems self-evident that there is a 
place in our budget process for a President empowered with a line-item 
veto to provide the needed discipline to eliminate waste. With our 
public debt expected to approach $3.9 trillion this year and our Gross 
Domestic Product or roughly $5.7 trillion, it is obvious that our debt 
may soon surpass our output.
  With that in mind, I hope the Senate would consider the following 
quote by a prescient figure in the Scottish Enlightenment, Alexander 
Tytler. He stated:

       A democracy cannot exist as a permanent form of government. 
     It can exist only until a majority of voters discover that 
     they can vote themselves largesse out of the
      public treasury. From that moment on, the majority always 
     votes for the candidate who promises them the most benefit 
     from the public treasury, with the result being that 
     democracy always collapses over a loose fiscal policy.

  If our debt surpasses our output, I fear that our democracy may just 
collapse over loose fiscal policy.
  Mr. President, we must recognize our responsibility to change as the 
times dictate. We have sought to remedy what ails the budget process in 
the past. As I have sought to do here, it is time we re-examine that 
history. And Mr. President, I am convinced that a real examination of 
that history reveals that if we are to get our fiscal house in order we 
must change the process.
  It is not an embarrassment to do so. And to do so should not be 
interpreted by anyone as a method to affix blame for our current 
deficit. As the President stated at his State of the Union Address, 
there is plenty of blame to go around. Now is the time to start anew. 
Now is the time to throw out games and gimmicks and embrace truth in 
budgeting. Now is the time to accept the facts as they are, and move 
forward. Now is the time to play straight with the process and fix it 
where we can fix it, embrace the positive aspects, and throw out those 
aspects of the process which are not serving us well.
  This bill represents progress and change. The only threat it 
represents is to the power of the Appropriations Committee. On the 
other hand, inaction on budget process reform represents a threat to 
American democracy. I ask my colleagues to carefully weigh these 
threats before as they consider this their position.
  Lastly, let me emphasize again that this legislation is not radical, 
extreme, or dangerous. For nearly 200 years our Nation's Presidents had 
some form of impoundment or line-item veto power. For nearly 20 years 
now this power has been out of balance.
  I give credit to those who tried to change the system. I give credit 
to those who believe passionately on this issue and will was eloquently 
on the Senate floor on this subject. I believe their efforts were well 
intended, but all the arguments cannot hide the fatal flaw that the 
system as it now exists is not functioning properly. History now tells 
us it is time to change again and give the President the authority that 
43 Governors possess. It is time to give the President the line-item 
veto.
  This bill is only a small step, but one in the right direction. I 
urge my colleagues to support this measure.
                                 ______

      By Mr. DOLE (for himself, Mr. Helms, Mr. Thurmond, Mr. Cohen, Mr. 
        Warner, Mrs. Hutchison, Mr. McCain, Mr. Lott, Mr. Nickles, and 
        Mr. Mack):
  S. 5. A bill to clarify the war powers of Congress and the President 
in the post-cold war period; to the Committee on Foreign Relations.


                      THE PEACE POWERS ACT OF 1995

  Mr. DOLE. Mr. President, today I am pleased to stand with Senators 
Helms, Thurmond, Hatch, Cohen, Warner, Hutchison, McCain, Lott, and 
Nickles to introduce the Peace Powers Act of 1995.
  Twenty-two years ago, I voted for S. 440, the War Powers Act of 1973. 
The act passed 72-18. Only 2 of those 18 Senators are serving in the 
104th Congress: The chairman of the Foreign Relations Committee, 
Senator Helms, and the chairman of the Armed Services Committee, 
Senator Thurmond. The conference report later passed, and President 
Nixon's veto was overridden. On each of those votes, I was in the 
majority while Senator Helms and Senator Thurmond were in the minority. 
After two decades, I now admit they were right, and I was wrong.
  Today, on the first day of the 104th Congress, I am introducing 
legislation to repeal the War Powers Resolution. War Powers was an 
admirable effort. It was enacted in the aftermath of a divisive war. It 
was an attempt to prevent more ``Vietnams.'' But the War Powers 
Resolution did not end division between the executive and legislative 
branch--it provided a focus for such division and may have actually 
increased disputes between the branches. In my view, the focus was 
unhealthy: automatic termination of American troop deployments if 
Congress did not act. Congress spent hours debating ``imminent 
hostilities'' and other definitional matters--rather than the important 
policy issues relating to war and peace.
  I have always believed that Congress has an important and central 
role in the decisions of war and peace. I believe any President should 
work to get Congress behind decisions to use force as early as 
possible. That's what President Bush did in 1991 before the war in the 
Persian Gulf.
  S. 5 repeals the War Powers Act. S. 5 adds back into law the War 
Powers provisions on consultation and reporting, provisions which have 
worked reasonable well. When an American President 
 [[Page S102]] acts in defense of American interests, the President 
should have all the flexibility provided in the Constitution--not be 
subject to an automatic withdrawal ``trigger'' or a 60-day time clock.
  S. 5 also addresses another aspect of the U.S. involvement in the 
post-cold war world: U.N. peacekeeping. S. 5 imposes significant new 
limits on peacekeeping policies which have jeopardized American 
interests, squandered resources--and cost lives. S. 5 limits the 
placing of American troops under foreign command. S. 5 also requires 
U.N. assessments for peacekeeping be reduced by the mount spent by the 
Department of Defense in direct or indirect support of peacekeeping 
activities. This addresses the absurd situation where the United States 
spends billions on Somalia, for example, and then receives a bill from 
the United Nations for millions more--as an assessment for our share of 
peacekeeping.
  S. 5 addresses the out of control deficit voting which has occurred 
in the United Nations. S. 5 requires the administration to tell 
Congress how it will pay for peacekeeping operations before they vote 
for such operations and incur any obligation. S. 5 also makes clear 
that no resources can be committed in New York which have not been 
appropriated by Congress. The Congress is a little tired of being told 
we owe arrearages which the administration has made no efforts to 
finance. S. 5 says if you cannot pay for it, don't vote for it. 
Finally, S. 5 reaffirms Congress' commitment to the reduction of the 
U.S. assessment for U.N. peacekeeping to 25 percent--even if the United 
Nations tries to change U.S. interest or penalties.
  S. 5 will be the subject of many hearings--in Foreign Relations, in 
Armed Services, and perhaps in other committees. Maybe certain 
provisions can be improved in the course of our review. I ask that a 
summary of the provisions of S. 5 be printed in the Record at the 
conclusion of my remarks.
  There being no objection, the material was ordered to be printed in 
the Record as follows:
                                  S. 5

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Peace Powers Act of 1995''.

     SEC. 2. REPEAL OF THE WAR POWERS RESOLUTION.

       (a) War Powers Resolution.--The War Powers Resolution 
     (Public Law 95-148; 50 U.S.C. 1541 et seq.) is repealed.
       (b) Conforming Repeal.--Section 1013 of the Department of 
     State Authorization Act, Fiscal Years 1984 and 1985 (50 
     U.S.C. 1546a) is hereby repealed.

     SEC. 3. CONSULTATION.

       The President in every possible instance shall consult with 
     Congress before introducing United States Armed Forces into 
     hostilities or into situations where imminent involvement in 
     hostilities is clearly indicated by the circumstances, and 
     after every such introduction shall consult regularly with 
     the Congress until United States Armed Forces are no longer 
     engaged in hostilities or have been removed from such 
     situations.

     SEC. 4. REPORTING.

       (a) Initial Reports.--In the absence of a declaration of 
     war, in any case in which United States Armed Forces are 
     introduced--
       (1) into hostilities or into situations where imminent 
     involvement in hostilities is clearly indicated by the 
     circumstances;
       (2) into the territory, airspace, or waters of a foreign 
     nation, while equipped for combat, except for deployments 
     which relate solely to supply, replacement, repair, or 
     training of such forces; or
       (3) in numbers which substantially enlarge United States 
     Armed Forces equipped for combat already located in a foreign 
     nation;

     the President shall submit within 48 hours to the Speaker of 
     the House of Representatives and to the President pro tempore 
     of the Senate a report, in writing, setting forth--
       (A) the circumstances necessitating the introduction of 
     United States Armed Forces;
       (B) the constitutional and legislative authority under 
     which such introduction took place; and
       (C) the estimated scope and duration of the hostilities or 
     involvement.
       (b) Additional Information.--The President shall provide 
     such other information as the Congress may request in the 
     fulfillment of its constitutional responsibilities with 
     respect to committing the Nation to war and to the use of 
     United States Armed Forces abroad.
       (c) Periodic Reports.--Whenever United States Armed Forces 
     are introduced into hostilities or into any situation 
     described in subsection (a) of this section, the President 
     shall, so long as such armed forces continue to be engaged in 
     such hostilities or situation, report to the Congress 
     periodically on the status of such hostilities or situation 
     as well as on the scope and duration of such hostilities or 
     situation, but in no event shall he report to the Congress 
     less often than once every 6 months.

     SEC. 5. LIMITATION ON PLACEMENT OF UNITED STATES ARMED FORCES 
                   UNDER FOREIGN COMMAND FOR A UNITED NATIONS 
                   PEACEKEEPING ACTIVITY.

       Section 6 of the United Nations Participation Act (22 
     U.S.C. 287d) is amended to read as follows:
       ``Sec. 6. (a) Any special agreement or agreements 
     negotiated by the President with the Security Council 
     providing for the numbers and types of United States Armed 
     Forces, their degree of readiness and general locations, or 
     the nature of facilities and assistance, including rights of 
     passage, to be made available to the Security Council for the 
     purpose of maintaining international peace and security in 
     accordance with Article 43 of the United Nations Charter, 
     shall be subject to the approval of the Congress by Act or 
     joint resolution.
       ``(b) The President may not subordinate to the command or 
     operational control of any foreign national any element of 
     the United States Armed Forces participating in any United 
     Nations peacekeeping activity unless--
       ``(1) the President satisfies the requirements of 
     subsection (c); or
       ``(2) the Congress enacts an Act or joint resolution 
     specifically authorizing such subordination.
       ``(c)(1) The requirements referred to in subsection (b)(1) 
     are that the President submit to the designated congressional 
     committees (at the time specified in paragraph (2) of this 
     subsection) the following documents:
       ``(A) A determination by the President that--
       ``(i) the proposed subordination of United States Armed 
     Forces to foreign command is in the national security 
     interest of the United States;
       ``(ii) the unit commanders of the United States Armed 
     Forces proposed for subordination to the command of foreign 
     nationals will at all times retain the ability to report 
     independently to higher United States military authorities;
       ``(iii) the United States will retain authority to withdraw 
     the United States Armed Forces from the United Nations 
     peacekeeping activity at any time and to take action it 
     considers necessary to protect those forces if they are 
     endangered; and
       ``(iv) the United States Armed Forces subordinated to the 
     command of foreign nationals will at all times remain under 
     United States administrative command for such purposes as 
     discipline and evaluation.
       ``(B) The justification for the determination made pursuant 
     to subparagraph (A)(i).
       ``(C) A memorandum of legal points and authorities 
     explaining why the proposed foreign command arrangement does 
     not violate the Constitution.
       ``(2) The documents described in paragraph (1) shall be 
     submitted to the appropriate congressional committees not 
     less than 15 days before any element of the United States 
     Armed Forces is subordinated to the command and control of a 
     foreign national, except that if the President determines 
     that an emergency exists which prevents compliance with the 
     requirement that notice be provided 15 days in advance, those 
     documents shall be submitted in a timely manner but no later 
     than 48 hours after such subordination.
       ``(d) For purposes of this section, the term `appropriate 
     committees of Congress' means--
       ``(1) the Committee on National Security, the Committee on 
     Appropriations, and the Committee on International Relations 
     of the House of Representatives; and
       ``(2) the Committee on Armed Services, the Committee on 
     Appropriations, and the Committee on Foreign Relations of the 
     Senate.''.

     SEC. 6. REDUCTION OF UNITED NATIONS ASSESSMENTS TO THE UNITED 
                   STATES FOR PEACEKEEPING OPERATIONS.

       (a) Annual Report.--The President shall, at the time of 
     submission of the budget to Congress for any fiscal year, 
     submit to the appropriate committees of Congress a report on 
     the total amount of funds appropriated for national defense 
     purposes for any fiscal year after fiscal year 1995 that were 
     expended during the preceding fiscal year to support or 
     participate in, directly or indirectly, United Nations 
     peacekeeping activities. Such report shall include a 
     breakdown by United Nations peacekeeping operation of the 
     amount of funds expended to support or participate in each 
     such operation.
       (b) Limitation.--In each fiscal year beginning with fiscal 
     year 1996, funds may be obligated or expended for payment to 
     the United Nations of the United States assessed share of 
     peacekeeping operations for that fiscal year only to the 
     extent that such assessed share exceeds the total amount 
     identified in the report submitted pursuant to subsection (a) 
     for the preceding fiscal year, reduced by the amount of any 
     reimbursement or credit to the United States by the United 
     Nations for the costs of United States support for, or 
     participation in, United Nations peacekeeping activities for 
     that fiscal year.
       (c) Definitions.--As used in this section:
       (1) The term ``United Nations peacekeeping activities'' 
     means any international peacekeeping, peacemaking, peace-
     enforcing, or similar activity that is authorized by the 
     United Nations Security Council under chapter VI or VII of 
     the United Nations Charter.
     [[Page S103]]   (2) The term ``appropriate committees of 
     Congress'' means--
       (A) the Committee on National Security, the Committee on 
     Appropriations, and the Committee on International Relations 
     of the House of Representatives; and
       (B) the Committee on Armed Services, the Committee on 
     Appropriations, and the Committee on Foreign Relations of the 
     Senate.

     SEC. 7. PRIOR CONGRESSIONAL NOTIFICATION OF SECURITY COUNCIL 
                   VOTES ON UNITED NATIONS PEACEKEEPING 
                   ACTIVITIES.

       (a) Notice to Congress of Proposed United Nations 
     Peacekeeping Activities.--Section 4 of the
      United Nations Participation Act of 1945 (22 U.S.C. 287b) is 
     amended--
       (1) by redesignating subsection (e) as subsection (g); and
       (2) by inserting after subsection (d) the following:
       ``(e) Notice to Congress of Proposed United Nations 
     Peacekeeping Activities.--(1) Except as provided in paragraph 
     (2), at least 15 days before any vote in the Security Council 
     to authorize any United Nations peacekeeping activity or any 
     other action under the Charter of the United Nations 
     (including any extension, modification, suspension, or 
     termination of any previously authorized United Nations 
     peacekeeping activity or other action) which would involve 
     the use of United States Armed Forces or the expenditure of 
     United States funds, the President shall submit to the 
     designated congressional committees a notification with 
     respect to the proposed action. The notification shall 
     include the following:
       ``(A) A cost assessment of such action (including the total 
     estimated cost and the United States share of such cost).
       ``(B) Identification of the source of funding for the 
     United States share of the costs of the action (whether in an 
     annual budget request, reprogramming notification, a 
     rescission of funds, a budget amendment, or a supplemental 
     budget request).
       ``(2)(A) If the President determines that an emergency 
     exists which prevents submission of the 15-day advance 
     notification specified in paragraph (1) and that the proposed 
     action is in the national security interests of the United 
     States, the notification described in paragraph (1) shall be 
     provided in a timely manner but no later than 48 hours after 
     the vote by the Security Council.
       ``(B) Determinations made under subparagraph (A) may not be 
     delegated.
       ``(f) Adverse Personnel Actions and Criminal Penalties.--
     Any officer or employee of the United States Government who 
     knowingly and willfully obligates or expends United States 
     funds to carry out any Security Council action described in 
     subsection (e) without the requirements of that subsection 
     having been met shall be subject to the same adverse 
     personnel actions and criminal penalties as are described in 
     sections 1349 and 1350, respectively, of title 31, United 
     States Code (originally enacted in the Anti-Deficiency 
     Act).''.

     SEC. 8. AVAILABILITY OF APPROPRIATIONS.

       Section 4 of the United Nations Participation Act of 1945 
     (22 U.S.C. 2876), as amended by section 7, is further 
     amended--
       (1) by redesignating subsection (g) as subsection (h); and
       (2) by inserting after subsection (f) the following:
       ``(g) Availability of Appropriations.--(1) The authority to 
     obligate United States funds to carry out any action pursuant 
     to a United Nations Security Council resolution under chapter 
     VI or VII of the United Nations Charter may be exercised only 
     to the extent and in the amounts provided in appropriation 
     Acts.
       ``(2) The President, acting through the United States 
     Permanent Representative to the United Nations, should advise 
     the Security Council of the requirement of this section on 
     each occasion when the United States supports a Security 
     Council resolution that may result in United States assessed 
     contributions to the United Nations exceeding amounts 
     currently available to be obligated for that purpose.''.

     SEC. 9. LIMITATION ON ASSESSMENT PERCENTAGE FOR PEACEKEEPING 
                   ACTIVITIES.

       Section 404(b)(2) of the Foreign Relations Authorization 
     Act, Fiscal Years 1994 and 1995 (Public Law 103-236) is 
     amended by adding at the end the following new sentence: 
     ``Any penalties, interest, or other charges imposed on the 
     United States in connection with such contributions shall be 
     credited as a part of the percentage limitation contained in 
     the preceding sentence.''.
          S. 5, The Peace Powers Act of 1995--January 4, 1995

       Repeals War Powers Resolution of 1973 in its entirety 
     (section 2).
       Consultation provisions added back: in advance in ``every 
     possible instance'' and ``regularly'' while deployment 
     underway (section 3, old section 3 of War Powers)
       Reporting provisions added back: reports ``within 48 
     hours'' of deployments (section 4, old section 4 of War 
     Powers).
       Withdrawal triggers, ``time clocks'' and expedited 
     procedures are gone (old sections 5-8 of War Powers, and a 
     post-Chadha reference)
       Strict limitation on placement of U.S. troops under foreign 
     command for U.N. peacekeeping operations (section 5). 
     Provides for presidential determination to allow placing 
     troops under foreign command (to address constitutional 
     concerns).
       Mandatory credit for Defense Department spending (section 
     6) requires U.N. assessments be reduced by the amount DoD 
     spent in direct or indirect support of U.N. peacekeeping 
     activities.
       Mandatory identification of funding before votes to 
     establish, extend or expand peacekeeping operations (section 
     7) improves on current law which requires only a cost 
     assessment but allows ``deficit voting.'' Section 8 also 
     requires the President to make any determination to waive the 
     advance notice, and adds penalties from the Anti Deficiency 
     Act to votes not in accordance with this section.
       Requires notice that U.S. resource commitments are subject 
     to Congressional appropriations (section 8), places the U.N. 
     on notice that the U.S. cannot commit funds which are not yet 
     appropriated (parallel to legislation governing international 
     financial institutions)
       Reaffirms congressional mandate to reduce U.S. peacekeeping 
     assessment to 25% (section 9), despite United Nations' plans 
     to add late fees, penalties, etc.
                                 ______

      By Mr. DASCHLE (for himself, Mr. Kennedy, Mr. Breaux, Ms. 
        Mikulski, Mr. Reid, Mr. Rockefeller, Mr. Dodd, Mr. Kerry, Mr. 
        Dorgan, and Ms. Moseley-Braun):
  S. 6. A bill to replace certain Federal job training programs by 
developing a training account system to provide individuals the 
opportunity to choose the type of training and employment-related 
services that most closely meet the needs of such individuals, and for 
other purposes; to the Committee on Labor and Human Resources.


                   working americans opportunity act

  Mr. DASCHLE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
                                  S. 6

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Working 
     Americans Opportunity Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.

                  TITLE I--JOB TRAINING ACCOUNT SYSTEM

Sec. 101. Establishment.
Sec. 102. Individual choice.
Sec. 103. Eligibility.
Sec. 104. Obtaining a voucher.
Sec. 105. Oversight and accountability.
Sec. 106. Eligibility requirements for providers of job training.
Sec. 107. Eligibility requirements for providers of employment-related 
              services.
Sec. 108. Evaluation of training account system and assistance centers.
Sec. 109. Apportionment of funds.

         TITLE II--ELIMINATION OF FEDERAL JOB TRAINING PROGRAMS

Sec. 201. Elimination of programs.
Sec. 202. Authorization of appropriations.

               TITLE III--INFORMATION FOR BETTER CHOICES

Sec. 301. Assistance centers.
Sec. 302. Access to labor market information.
Sec. 303. Direct loans to working Americans.

                      TITLE IV--REPORTS AND PLANS

Sec. 401. Consolidation and streamlining.
Sec. 402. Report relating to income support.
     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) increasing international competition, technological 
     advances, and structural changes in the economy of the United 
     States present new challenges to private firms and public 
     policymakers in creating a skilled workforce with the ability 
     to adapt to change and progress;
       (2) a substantial number of Americans lose jobs due to the 
     constantly changing world and national economies rather than 
     cyclical downturns, with more than 2,000,000 full-time 
     workers permanently displaced annually due to plant closures, 
     production cutbacks, and layoffs;
       (3) the current response of the Federal Government to 
     dislocation and structural employment is a patchwork of 
     categorical programs, with varying eligibility requirements 
     and different sets of services and benefits;
       (4) the lack of coherence among existing Federal programs 
     creates administrative and regulatory obstacles that hamper 
     the efforts of individuals who are seeking new jobs or 
     reemployment;
       (5) enacted in 1944, the Servicemen's Readjustment Act of 
     1944, popularly known as the GI Bill of Rights, helped 
     millions of World War II veterans, and later, Korean and 
     Vietnam War veterans, finance college educations and assisted 
     in building the middle class of the United States;
       (6) restructuring the current job training system, with 
     respect to dislocated and disadvantaged workers, in a manner 
     that is 
      [[Page S104]] conceptually similar to the GI Bill will help 
     millions of Americans to become more competitive in today's 
     dynamic world economy in which most Americans--
       (A) can expect to move to new jobs a number of times, 
     voluntarily or by layoff; and
       (B) must upgrade their skills continuously;
       (7) success in this ever-changing environment depends, in 
     part, on an individual's effective management of the 
     individual's career based on personal choice and reliable 
     information;
       (8) there is insufficient market information and assistance 
     regarding access to job training opportunities that lead to 
     good employment opportunities;
       (9) only a small fraction of individuals eligible for 
     current Federal job training are now served, and by removing 
     obstacles and layers of administrative costs, more funds will 
     be made available to individuals to enable such individuals 
     to receive the training of their choice; and
       (10) while the Federal Government proceeds to create a new 
     marketplace for job training, the Federal Government must 
     also maintain its commitment to providing intensive services 
     to assist those individuals who are economically 
     disadvantaged.
       (b) Purposes.--It is the purpose of this Act to--
       (1) enhance the choices available to dislocated workers, 
     and the economically disadvantaged, who want to upgrade their 
     work skills and learn new skills to compete in a changing 
     economy;
       (2) enable individuals to make choices that are best for 
     the careers of such individuals;
       (3) replace a number of Federal job training programs and 
     employment-related services with a simple and direct training 
     account voucher system that relies on individual choice and 
     provides high-quality job market information;
       (4) allow an individual to tailor training and education to 
     the personal needs of such individual so that such individual 
     may remain in long-term employment yet have the means to be 
     flexible when necessary; and
       (5) create a system that provides timely and reliable 
     information to individuals to use to assist such individuals 
     in making the best choices with respect to the use of 
     vouchers for job training and employment-related services.

     SEC. 3. DEFINITIONS.

       As used in this Act:
       (1) Dislocated workers.--
       (A) In general.--The term ``dislocated workers'' means 
     individuals who--
       (i) have been terminated or laid off or who have received a 
     notice of termination or layoff from employment, are eligible 
     for or have exhausted their entitlement to unemployment 
     compensation, and are unlikely to return to their previous 
     industry or occupation;
       (ii) have been terminated or have received a notice of 
     termination of employment, as a result of any permanent 
     closure of or any substantial layoff at a plant, facility, or 
     enterprise;
       (iii) are long-term unemployed and have limited 
     opportunities for employment or reemployment in the same or a 
     similar occupation in the area in which such individuals 
     reside, including older individuals who may have substantial 
     barriers to employment by reason of age; or
       (iv) were self-employed (including farmers and ranchers and 
     fishermen) and are unemployed as a result of general economic 
     conditions in the community in which they reside or because 
     of natural disasters, subject to regulations prescribed by 
     the Secretary.
       (B) Special rule.--The Secretary of Labor shall establish 
     categories of self-employed individuals and of economic 
     conditions and natural disasters to which subparagraph 
     (A)(iv) applies.
       (2) Community-based organizations.--The term ``community-
     based organizations'' means private nonprofit organizations 
     that--
       (A) are representative of communities or significant 
     segments of communities; and
       (B) provide education, training, and related services.
       (3) Economically disadvantaged adult.--The term 
     ``economically disadvantaged adult'' means an individual who 
     is age 18 and older and who has, or is a member of a family 
     that has, received a total family income (exclusive of 
     unemployment compensation, child support payments, and 
     welfare payments) that, in relation to family size, was not 
     in excess of the higher of--
       (A) the official poverty line (as defined by the Office of 
     Management and Budget, and revised annually in accordance 
     with section 9902(2)) of title 42; or
       (B) 70 percent of the lower living standard income level.
       (4) Governor.--The term ``Governor'' means the chief 
     executive of any State.
       (5) Provider.--The term ``provider'' means a public agency, 
     private nonprofit organization, or private for-profit entity 
     that delivers basic employment, educational, job training, 
     employment-related, or supportive services.
       (6) State.--The term ``State'' means any of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, the Virgin Islands, Guam, the Commonwealth of the 
     Northern Mariana Islands, American Samoa, the Republic of the 
     Marshall Islands, the Federated States of Micronesia, and the 
     Republic of Palau.
                  TITLE I--JOB TRAINING ACCOUNT SYSTEM

     SEC. 101. ESTABLISHMENT.

       Not later than January 1, 1996, the Secretary of Labor and 
     the Secretary of Education shall jointly establish pursuant 
     to the requirements of this Act a job training account system 
     that provides vouchers to individuals for the purpose of the 
     provision of job training and employment-related services.

     SEC. 102. INDIVIDUAL CHOICE.

       (a) In General.--Upon notification of approval of an 
     application under section 104, an individual may receive a 
     voucher in the amount of $3,000 for 2-years beginning on the 
     date on which an application is approved under section 104.
       (b) Use of Training Account Vouchers for Job Training and 
     Employment-Related Services.--
       (1) In general.--An individual who is a recipient of a 
     voucher under subsection (a) may use such voucher to purchase 
     job training or employment-related services from providers 
     that meet the requirements of section 106 or 107, whichever 
     is applicable.
       (2) Authorized job training and employment-related 
     services.--
       (A) In general.--The job training and employment-related 
     services described in paragraph (1) may include--
       (i) associate degree or nondegree programs at--

       (I) two- and four-year colleges;
       (II) vocational and technical education schools;
       (III) private for-profit and not-for-profit training 
     organizations;
       (IV) public agencies and schools; and
       (V) community-based organizations;

       (ii) employer work-based training programs;
       (iii) job search assistance;
       (iv) in   the case of individuals who are economically 
     disadvantaged,   preemployment   training programs; or
       (v) other appropriate employment-related services.
       (B) Special rule.--A recipient of a voucher under 
     subsection (a) may not pay by voucher more than $750 for job 
     search assistance services.

     SEC. 103. ELIGIBILITY.

       An individual shall be eligible to receive a voucher under 
     this title if such individual is--
       (1) a dislocated worker; or
       (2) an economically disadvantaged adult.

     SEC. 104. OBTAINING A VOUCHER.

       (a) Application.--An individual who desires to participate 
     in a training account program established under this title 
     shall submit an application to a voucher application office 
     described in subsection (b)(1) at such time, in such manner, 
     and accompanied by such information as the Governor may 
     reasonably require. The Governor shall, to the extent that 
     appropriations are available, approve an application that 
     meets the application requirements of regulations issued 
     under section 105 and promptly notify such applicant of such 
     approval.
       (b) State-Designated Voucher Application Offices.--
       (1) Establishment.--Each State shall designate or establish 
     easily accessible voucher application offices within such 
     State to assist in administering the training account system 
     under this title. Such offices may be administered by private 
     (for-profit or not-for-profit) or public entities.
       (2) Duties.--Each voucher application office shall--
       (A) provide applications for vouchers under this title to 
     interested individuals, assist such individuals in completing 
     such applications, and collect completed applications for 
     determination of eligibility;
       (B) provide performance-based information to applicants 
     relating to service providers eligible to receive payment by 
     voucher in accordance with section 106 or 107, whichever is 
     applicable;
       (C) carry out such other duties relating to the training 
     account system as may be specified by the Governor or 
     prescribed in regulations issued jointly by the Secretary of 
     Labor and the Secretary of Education; and
       (D) provide information on--
       (i) the local economy and availability of employment;
       (ii) profiles of local industries; and
       (iii) details of local labor market demand.
       (3) Conflict of interest standards.--The Secretary of Labor 
     and the Secretary of Education shall jointly issue 
     regulations establishing procedures to ensure that voucher 
     application offices that are administered by an entity that 
     is concurrently an eligible provider of services under the 
     training account system provide information to voucher 
     applicants relating to the other providers of services in the 
     local area in an objective and equitable manner.
       (c) Sense of the Congress.--It is the sense of the Congress 
     that as States become more experienced with administering 
     vouchers to eligible individuals that the voucher 
     applications offices described in subsection (b) should be 
     converted to one stop assistance centers described in section 
     301.

     SEC. 105. OVERSIGHT AND ACCOUNTABILITY.

       (a) In General.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary of Labor and the 
     Secretary of Education shall jointly issue regulations that--
       (1) specify the--
       (A) voucher application requirements;
       (B) form of vouchers;
       (C) use of such vouchers;
     [[Page S105]]   (D) method of redemption of such vouchers;
       (E) most expeditious and effective process of distribution 
     (consistent with the findings and purposes of this Act) of a 
     voucher from the Federal Government to eligible individuals; 
     and
       (F) the arrangements necessary to phase in the training 
     account system in each State in a timely manner;
       (2) specify the duties and responsibilities of providers 
     under a training account program established by a State under 
     this title;
       (3) include a role for a State in the oversight of such 
     providers of such State;
       (4) specify the Federal and State responsibilities in such 
     oversight, including the enforcement responsibilities and the 
     determination of administrative costs with respect to a State 
     that establishes a training account program under this title;
       (5) include provisions that encourage States to distribute 
     in a regionally balanced manner, to the extent practicable, 
     vouchers to individuals to purchase job training or 
     employment-related services in such State; and
       (6) specify the manner in which economically disadvantaged 
     individuals will receive adequate counseling and support 
     services necessary to take full advantage of the voucher 
     assistance under this title.
       (b) Public Comments.--In promulgating regulations under 
     subsection (a), the Secretary of Labor and the Secretary of 
     Education shall provide the opportunity for comment from the 
     public, including representatives of the business community, 
     workers, and community-based organizations.

     SEC. 106. ELIGIBILITY REQUIREMENTS FOR PROVIDERS OF JOB 
                   TRAINING.

       (a) Eligibility Requirements.--A provider of job training 
     shall be eligible to receive payment by voucher under this 
     title if such provider--
       (1) is--
       (A) eligible to participate in programs under title IV of 
     the Higher Education Act of 1965; or
       (B) determined to be eligible under the procedures 
     described in subsection (b); and
       (2) provides the performance-based information required 
     pursuant to subsection (c).
       (b) Alternative Eligibility Procedure.--
       (1) In general.--The Governor shall establish an 
     alternative eligibility procedure for providers of job 
     training desiring to receive payment by voucher under this 
     title, but that are not eligible to participate in programs 
     under title IV of the Higher Education Act of 1965.
       (2) Procedure requirements.--The procedure described in 
     paragraph (1) shall establish minimum acceptable levels of 
     performance for providers of job training based on factors 
     and guidelines developed jointly by the Secretary of Labor 
     and the Secretary of Education. Such factors shall be 
     comparable in rigor and scope to those provisions of part H 
     of title IV of the Higher Education Act of 1965 that are used 
     to determine an institution of higher education's eligibility 
     to participate in programs under such part as are appropriate 
     to the type of provider seeking eligibility under this 
     subsection and the nature of the education and training 
     services to be provided.
       (3) Limitation.--Notwithstanding paragraph (1), if the 
     participation of an institution of higher education in any of 
     the programs under title IV of the Higher Education Act of 
     1965 is terminated, such institution shall not be eligible to 
     receive funds under this Act for a period of 2 years 
     beginning on the date of such termination.
       (c) Performance-Based Information.--
       (1) Contents.--The Secretary of Labor and the Secretary of 
     Education, shall identify performance-based information that 
     is to be submitted by providers of job training desiring to 
     be eligible under this section. Such information may include 
     information relating to--
       (A) the percentage of students completing the programs 
     conducted by a provider of job training;
       (B) the rates of licensure of graduates of the programs 
     conducted by such provider;
       (C) the percentage of graduates of the programs conducted 
     by such provider that meet skill standards and certification 
     requirements endorsed by the National Skill Standards Board 
     established under section 503 of the National Skills 
     Standards Act of 1994;
       (D) the rates of placement and retention in employment, and 
     earnings of the graduates of the programs conducted by such 
     provider;
       (E) the percentage of graduates of the program conducted by 
     such provider who obtained employment in an occupation 
     related to such program conducted by such provider; and
       (F) the warranties or guarantees provided by such provider 
     relating to the skill levels or employment to be attained by 
     graduates of the program conducted by such provider.
       (2) Additions.--The Governor may, pursuant to the approval 
     of the Secretary of Labor and the Secretary of Education, 
     prescribe additional performance-based information that shall 
     be submitted by providers of job training pursuant to this 
     subsection.
       (d) Administration.--
       (1) State agency.--The Governor shall designate a State 
     agency to collect, verify, and disseminate the performance-
     based information submitted pursuant to paragraph (1) of 
     subsection (c).
       (2) Application.--A provider of job training desiring to be 
     eligible to receive funds under this title shall submit the 
     information required under subsection (c) to the State agency 
     designated under paragraph (1) at such time and in such form 
     as such State agency may require.
       (3) List of eligible providers.--The State agency 
     designated under paragraph (1) shall compile a list of 
     eligible providers, accompanied by the performance-based 
     information submitted, and disseminate such list and 
     information to the voucher application offices described 
     under section 105(b)(1), assistance centers under section 
     301, and other appropriate entities within the State.
       (4) Accuracy of information.--
       (A) In general.--If the State agency determines that a 
     provider of training services submitted inaccurate 
     performance-based information under this subsection, then 
     such provider shall be disqualified from receiving funds 
     under this title for a period of 2 years beginning on the 
     date of such determination, unless such provider can 
     demonstrate to the satisfaction of the Governor or a designee 
     of the Governor, that the information was provided in good 
     faith.
       (B) Appeal.--The Governor shall establish a procedure for a 
     provider of job training to appeal a determination by a State 
     agency that results in a disqualification under subparagraph 
     (A). Such procedure shall provide an opportunity for a 
     hearing and prescribe appropriate time limits to ensure 
     prompt resolution of the appeal.
       (5) Assistance in developing information.--The State agency 
     designated under paragraph (1) may provide technical 
     assistance to a provider of job training in developing the 
     performance-based information required under subsection (c). 
     Such assistance may include facilitating the utilization of 
     State administrative records, such as unemployment 
     compensation wage records, and other appropriate coordination 
     activities.
       (6) Consultation.--The Secretary of Labor shall consult 
     with the Secretary of Education regarding the eligibility of 
     institutions of higher education or other providers of job 
     training to participate in programs under this Act or under 
     title IV of the Higher Education Act of 1965.

     SEC. 107. ELIGIBILITY REQUIREMENTS FOR PROVIDERS OF 
                   EMPLOYMENT-RELATED SERVICES.

       (a) In General.--A provider of employment-related services 
     shall be eligible to receive payment by voucher under this 
     title if such provider--
       (1) is determined to be eligible under procedures described 
     in subsection (b); and
       (2) provides the performance-based information required 
     pursuant to subsection (c).
       (b) Procedures.--The Governor, after consultation with 
     local elected officials and other appropriate entities in the 
     State, shall establish eligibility procedures for providers 
     of employment-related services in such State desiring to 
     receive payment by voucher under this title. Such procedures 
     shall establish minimum acceptable levels of performance for 
     such providers based on factors and guidelines developed by 
     the Secretary of Labor.
       (c) Performance-Based Information.--The Secretary of Labor 
     and the Secretary of Education shall identify performance-
     based information that is to be submitted by providers of 
     employment-related services desiring to be eligible under 
     this section.

     SEC. 108. EVALUATION OF TRAINING ACCOUNT SYSTEM AND 
                   ASSISTANCE CENTERS.

       The Secretary of Labor and the Secretary of Education shall 
     annually--
       (1) monitor the effectiveness of the training account 
     system and the assistance centers established under section 
     301;
       (2) evaluate the benefit of such system and centers to 
     voucher recipients under this title and the taxpayer; and
       (3) submit to the appropriate committees of Congress 
     information obtained from such evaluation.

     SEC. 109. APPORTIONMENT OF FUNDS.

       (a) In General.--The Secretary of Labor and the Secretary 
     of Education shall, without in any way reducing the 
     commitment of, or the level of effort by, the Federal 
     Government to improve the education, employment, and earnings 
     of all workers and jobseekers (particularly in hard-to-serve 
     communities), jointly apportion funds appropriated under 
     section 202 to each State for each fiscal year in accordance 
     with subsection (b).
       (b) Consideration of Factors.--
       (1) In general.--An apportionment of funds under subsection 
     (a) shall be based on the following factors:
       (A) The relative number of unemployed individuals who 
     reside in each State as compared to the total number of 
     unemployed individuals in all the States.
       (B) The relative excess number of unemployed individuals 
     who reside in each State as compared to the total excess 
     number of unemployed individuals in all the States.
       (C) The relative number of individuals who have been 
     unemployed for 15 weeks or more and who reside in each State 
     as compared to the total number of such individuals in all 
     the States.
       (D) The relative number of economically disadvantaged 
     adults who reside in each State.
       (2) Definition.--For purposes of this subsection, the term 
     ``excess number'' means the number which represents 
     unemployed individuals in excess of 4.5 percent of the 
     civilian labor force in the State.
       (c) Funds for Vouchers.--
       (1) In general.--Except as provided in paragraph (2), not 
     less than 75 percent of funds apportioned to a State under 
     subsection (a) shall be made available in the 
      [[Page S106]] form of vouchers to individuals in the State 
     who are eligible under section 103.
       (2) Waiver.--The Secretary of Labor may waive the 
     requirement under paragraph (1) for a State if--
       (A) such State provides job training and employment-related 
     services other than the job training and employment-related 
     services provided through vouchers; and
       (B) such services are considered by the Secretary of Labor 
     to be more beneficial to individuals in such State to meet 
     the self-determined training needs of such individuals.
       (d) Nonvoucher Employment-Related Services.--
       (1) In general.--The remaining balance of the funds 
     apportioned under subsection (a) shall be used for 
     employment-related services that are provided through means 
     other than voucher and that increase the probability that 
     such individuals will benefit from training and reenter the 
     workforce.
       (2) Authorized services.--The employment-related services 
     described in paragraph (1) may include--
       (A) skill assessments;
       (B) testing;
       (C) counseling;
       (D) job development;
       (E) work experience evaluation;
       (F) job readiness training;
       (G) basic skills education;
       (H) supportive and supplemental services; and
       (I) rapid response.
       (3) Availability of services.--The services described in 
     paragraph (2) and any other related services may be made 
     available through assistance centers established under title 
     III.
       (e) Special Rule.--The Secretary of Labor and the Secretary 
     of Education shall jointly determine the equitable 
     distribution of voucher assistance and nonvoucher assistance 
     under subsections (c) and (d), respectively, between 
     dislocated workers and economically disadvantaged adults.
         TITLE II--ELIMINATION OF FEDERAL JOB TRAINING PROGRAMS

     SEC. 201. ELIMINATION OF PROGRAMS.

       (a) Sense of Congress.--It is the sense of Congress that 
     the elimination and streamlining of Federal job training 
     programs should be accomplished without in any way reducing 
     the commitment of, or the level of effort by, the Federal 
     Government to improve the education, employment, and earnings 
     of all workers and jobseekers particularly in hard-to-serve 
     communities.
       (b) Repeals of Employment Training Programs.--
       (1) In general.--The following provisions are repealed:
       (A) Section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(d)(4)).
       (B) Section 106(b)(7) of the Job Training Partnership Act 
     (29 U.S.C. 1516(b)(7)).
       (C) Section 123 of such Act (29 U.S.C. 1533).
       (D) Section 204(d) of such Act (29 U.S.C. 1604(d)).
       (E) Part A of title II of such Act (29 U.S.C. 1601 et 
     seq.).
       (F) Section 302(c) of such Act (29 U.S.C. 1652(c)).
       (G) Part A of title III of such Act (29 U.S.C. 1661 et 
     seq.).
       (H) Sections 321 through 324 of such Act (29 U.S.C. 1662 
     through 1662c).
       (I) Section 325 of such Act (29 U.S.C. 1662d).
       (J) Section 325A of such Act (29 U.S.C. 1662d-1).
       (K) Section 326 of such Act (29 U.S.C. 1662e).
       (L) Sections 301 through 303 of such Act (29 U.S.C. 1651 et 
     seq.).
       (M) Subtitle C of title VII of the Stewart B. McKinney 
     Homeless Assistance Act (42 U.S.C. 11441 et seq.).
       (N) The Displaced Homemakers Self-Sufficiency Assistance 
     Act (29 U.S.C. 2301 et seq.);
       (O) Section 43 of the Airline Deregulation Act of 1978 (49 
     U.S.C. App. 1552)
       (P) Title II of Public Law 95-250 (92 Stat. 172).
       (2) Effective date.--The repeals made by paragraph (1) 
     shall take effect on January 1, 1996.

     SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     Act for fiscal years 1996, 1997, and 1998 the same level of 
     funds that were appropriated for the programs described in 
     section 201(b) for fiscal year 1995.
               TITLE III--INFORMATION FOR BETTER CHOICES

     SEC. 301. ASSISTANCE CENTERS.

       (a) Establishment.--
       (1) In general.--A State may, with the funds made available 
     under section 109(d), make arrangements with private or 
     public entities to establish assistance centers to provide 
     voucher recipients under title I, jobseekers, employers, and 
     workers information and employment-related services to 
     increase the probability that such individuals will benefit 
     from job training and make better use of other Federal job 
     training assistance. An assistance center may serve as the 
     location where individuals may apply to become eligible for 
     voucher assistance under title I.
       (2) Location.--An assistance center may be located within 
     an existing unemployment office.
       (3) Public consultation.--A State that desires to establish 
     an assistance center is encouraged to consult the public, 
     including the business community, and workers, regarding the 
     choice of services to be made available and the location of 
     such center.
       (b) Available Information.--The information made available 
     to individuals described in subsection (a) shall include data 
     on--
       (1) the local economy and availability of employment;
       (2) profiles of local industries;
       (3) details of local labor market demand;
       (4) local demographic and socioeconomic characteristics;
       (5) the performance of training and education providers; 
     and
       (6) private support service providers.
       (c) Employment-Related Services.--The employment-related 
     services available to individuals described in subsection (a) 
     may include--
       (1) counseling;
       (2) skills and employability assessment;
       (3) job referral; and
       (4) child care.
       (d) Other Services.--The Governor shall make available 
     through the assistance centers information on and provide 
     referrals to other Federal and State job training and 
     employment-related service programs.

     SEC. 302. ACCESS TO LABOR MARKET INFORMATION.

       (a) Findings.--The Congress finds that accurate, timely, 
     and relevant data regarding employment, training, job skills, 
     and education opportunities are useful for individuals making 
     choices about the careers of such individuals.
       (b) Authority.--
       (1) In general.--The Secretary of Labor and the Secretary 
     of Education are authorized to make arrangements with public 
     or private entities to develop and provide relevant labor 
     market information to interested individuals, including 
     voucher recipients under title I, jobseekers, employers, and 
     workers.
       (2) Type of information for collection.--The types of 
     information to be developed and provided under paragraph (1) 
     shall include the following:
       (A) Regional labor market demand.
       (B) Regional employment opportunities.
       (C) Regional industries and employers.
       (D) Demographic, socioeconomic, and economic 
     characteristics of particular regions.

     SEC. 303. DIRECT LOANS TO WORKING AMERICANS.

       (a) Findings.--The Congress finds that the Federal Direct 
     Student Loan Program authorized by part D of title IV of the 
     Higher Education Act of 1965, is a valuable financing tool 
     for working Americans who desire to take advantage of 
     training and education programs, consistent with the goals of 
     such Americans, to learn new skills for careers that may 
     bring higher salaries and improved quality of life.
       (b) Awareness.--The Department of Education shall endeavor 
     to make known the value and availability of direct loans 
     through the Federal Direct Student Loan Program under part D 
     of title IV of the Higher Education Act of 1965 through 
     cooperative arrangements with training and educational 
     training programs, assistance centers, State agencies, and 
     other Federal agencies.
                      TITLE IV--REPORTS AND PLANS

     SEC. 401. CONSOLIDATION AND STREAMLINING.

       (a) Report on Consolidating Noncovered Federal Job Training 
     Programs.--Not later than January 1, 1996, and each year 
     thereafter, the Secretary of Labor and the Secretary of 
     Education shall jointly prepare and submit to Congress a 
     report on how additional Federal job training programs not 
     covered by this Act can be consolidated into a more 
     integrated and accountable workforce development system that 
     better meets the needs of jobseekers, workers, and business.
       (b) Plan on Use of Common Definitions, Measures, Standards, 
     and Cycles.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Labor and the 
     Secretary of Education shall jointly develop a plan that, 
     wherever practicable, requires all Federal job training 
     programs not covered by this Act to use common definitions, 
     common outcome measures, common eligibility standards, and 
     common funding cycles in order to make such training programs 
     more accessible.

     SEC. 402. REPORT RELATING TO INCOME SUPPORT.

       (a) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) many dislocated workers and economically disadvantaged 
     adults are unable to enroll in long-term job training because 
     such workers and adults lack income support after 
     unemployment compensation is exhausted;
       (2) evidence suggests that long-term job training is among 
     the most effective adjustment service in assisting dislocated 
     workers and economically disadvantaged adults to obtain 
     employment and enhance wages; and
       (3) there is a need to identify options relating to how 
     income support may be provided to enable dislocated workers 
     and economically disadvantaged adults to participate in long-
     term job training.
       (b) Report.--Not later than 120 days after the date of 
     enactment of this Act, the Secretary of Labor shall submit to 
     the Congress a report that--
       (1) examines the need for income support to enable 
     dislocated workers and economically disadvantaged adults to 
     participate in long-term job training;
       (2) identifies options relating to how income support can 
     be provided to such workers and adults; and
     [[Page S107]]   (3) contains such recommendations as the 
     Secretary of Labor determines are appropriate.

  Mr. KENNEDY. Mr. President, I join today with the distinguished 
Minority Leader, Senator Daschle, in co-sponsoring legislation critical 
to the health and economy of this Nation and to working families across 
this country.
  I applaud Senator Daschle for the Democratic priorities set forth in 
the legislation he has introduced on this, the first day of the 104th 
Congress. As I traveled across Massachusetts over these past few 
months, it was clear that the priorities of the people are jobs and the 
economy, health care and education. These are their priorities, they 
are my priorities and they are the priorities shared by the Democratic 
leadership in the Senate, House, and White House.
  I look forward to working together with the new Republican 
leadership. The challenges facing our Nation are not Republican or 
Democrat, and they require a bipartisan response.
  The health care crisis continues to be our greatest challenge and 
must be our highest priority. To carry on the work begun in the last 
Congress, I join in co-sponsoring the Affordable Health Care for All 
Americans Bill.
  The crisis in health care has not gone away. Last year the number of 
Americans without health insurance coverage increased by another 
million. The rise in the nation's health spending was close to $100 
billion. The escalating cost of Medicare and Medicaid continues to 
undermine our efforts to control the deficit. Worst of all, millions of 
families across the country have no confidence that the health 
insurance that protects them today will be there for them tomorrow if 
serious illness strikes.
  It is not surprising that surveys find that Americans rank health 
care reform as a top priority for the new Congress. Every Member of the 
Senate has heard from hundreds, if not thousands, of Americans who have 
been devastated by uninsured illness. Every Member of the Senate has 
talked to hundreds of business owners, large and small, who say that 
uncontrolled health care costs are eating away at profits, decreasing 
competitiveness, and taking money away from needed wage increases. 
Every Member of the Senate knows that the tough choices we face to put 
our fiscal house in order would be immeasurably easier if health care 
costs were going up only as fast as the other parts of our economy. 
Every Member of the Senate knows that a major reason wages and living 
standards have stagnated for more than a decade is the continuing rise 
in health care costs. And every Member of the Senate knows that, once 
the political rhetoric and the disagreement over specifics is stripped 
away, the sickness in our health care system cannot be cured without 
decisive government action.
  At its best, health care in the United States is superb. But the 
system we have created to pay for that care is a nineteenth century 
horse and buggy unsuited for America today. The dishonor roll of the 
gaps in our health care system is a long one.
  Insurance companies selling health insurance to small businesses and 
individuals almost universally apply pre-existing condition exclusions 
to the coverage they sell. That means you are not covered for treatment 
of the very health condition most likely to make you sick. More than 80 
million Americans have pre-existing conditions that could be subject to 
this kind of exclusion if they have to change insurance policies.
  In our non-system of health insurance financing, there is no 
guarantee of coverage or renewability. If you have a pre-existing 
condition, there is no guarantee you can buy coverage at any price. If 
you have coverage and become sick, there is nothing to keep your 
insurer from raising your premium out of sight or canceling your 
coverage. To avoid high risks, insurance companies redline whole 
neighborhoods, occupations, and businesses, and deny the chance for any 
protection at all.
  Those who seem to have good coverage often find themselves without 
the protection they need when they read the fine print. They face 
lifetime limits on coverage, or an exclusion of the very service that 
is most important. Insurance that provides good coverage when you 
become sick often does little to encourage the preventive care that can 
keep you well.
  Often, even if good coverage is available, it is not affordable. With 
good family plans costing $5,000 or $6,000 or more, too many Americans 
are priced out of the coverage they need. Few families, no matter how 
hard they work, can afford adequate health insurance if their employer 
does not contribute to the cost. That is why more than 30 million of 
the uninsured are members of working families. The breadwinners in 
these families work hard--40 hours a week, 52 weeks a year--but all 
their hard work cannot buy the protection they need for themselves and 
their loved ones, because their employer will not share in the cost. 
Families that have coverage today are only one pink slip away from 
losing it, or one management decision away from its cancellation or 
reduction.
  Senior citizens and younger people with disabilities face two huge 
gaps in the system of retirement security that Medicare and Social 
Security are supposed to guarantee. They lack affordable coverage for 
the cost of long-term care and prescription drugs.
  The cost of health care in America is out of control. Per person, we 
pay more than any other industrialized country--40 percent more than 
the Canadians, twice as much as the Germans and Japanese. The rapid 
escalation in the cost of health care is robbing American families of 
the wage gains they need to fulfill the American dream. It is a cancer 
on our economic future.
  Last year we came closer than ever before to finally making the right 
to health care a reality for all Americans. Theodore Roosevelt first 
proposed a national health plan more than 80 years ago. President Bill 
Clinton and First Lady Hillary Clinton put this issue on the national 
agenda at a level of intensity that has never before been achieved. 
Four committees of Congress reported out bills guaranteeing coverage to 
every American. For the first time in our Nation's history, 
comprehensive health reform was debated on the floor of the Senate. And 
up to the last days of the session, a bipartisan coalition in the 
Senate struggled to shape a compromise that could break the gridlock. 
As I have said many times, if it was easy, it would have been 
accomplished long ago. It took four separate votes in successive 
sessions of Congress before Medicare was finally approved.
  Our challenge is to pass a program that will meet the test of real 
reform--guaranteed, affordable, comprehensive coverage for every family 
and control of health care costs. Senator Daschle's bill demonstrates 
the high priority that our party gives to such reform and provides a 
basis for constructive action. His bill includes important insurance 
reforms. It will bring affordable health insurance for children within 
reach of millions of American families, and provide special help for 
temporarily unemployed workers who lose their coverage when they lose 
their job. It also provides 100 percent deductibility for small 
businesses, and addresses other important problems. I look forward to 
working with members on both sides of the aisles in passing this kind 
of down payment legislation this year.
  As we look to the future, we must keep our eye on the ultimate 
objective: to assure that every family in America is guaranteed the 
basic right to health care. Every member of Congress has that 
guarantee. Every Canadian has it. Every French citizen has it. Every 
German has it. Every Japanese has it. In fact, every citizen of every 
other industrialized country except South Africa has it. It is time for 
us to give every family in America the peace of mind of knowing that 
uninsured illness will never turn their American dream into a 
nightmare.
  I am also proud to join the Minority Leader in cosponsoring the 
Working Americans' Opportunity Act, and I also commend Senator Breaux 
for his effective work in shaping this legislation.
  Given today's rapidly changing economy, one of the top priorities of 
this Congress must be to reform and streamline existing job training 
programs to ensure that they provide realistic opportunities for 
workers to upgrade skills and increase their earning power over the 
course of their careers.
  As we modernize our job training system, we must not, in any way, 
retreat 
 [[Page S108]] from the commitment that we have made to provide the 
basic skills and supports which make it possible for jobseekers and 
workers to actively participate in the labor market.
  We need to respond to the new and powerful economic forces which are 
making labor markets more uncertain for the middle class. As a result 
of increased international competition, rapid technological change and 
reductions in defense, many men and women already in the labor force 
must be retrained to improve their skills and enable them to continue 
in productive careers. In the evolving modern economy, this kind of 
retraining may be needed more than once, and often several times over 
the course of people's careers.
  A more flexible job training system is essential to respond to the 
ever-expanding number of two-income families and families with single 
heads of households who face the difficult challenge of balancing work 
and family responsibilities.
  Over the past decade many private businesses have taken steps to re-
engineer their operations to deal with the profound changes taking 
place in our economy. It is clearly time for the Federal Government to 
act as well, to improve the return we are receiving from the funds we 
invest in job training and to give workers a greater opportunity to 
succeed.
  The Working American's Opportunity Act, S. 6, begins the important 
process of streamlining the existing complex job training system, in 
order to create more accessible, more effective, and more 
understandable assistance for workers.
  Vouchers modeled on the G.I. Bill that transformed this Nation after 
World War II will be available for workers to select training programs 
most suited to their needs. States will be encouraged to establish 
``one-stop-shopping'' centers for career counseling, job search 
assistance and performance assessments of training programs. To insure 
that
 workers have the most up-to-date information on emerging jobs and the 
skills required, national labor market information will be available. 
Taken together, these changes are excellent steps toward creating the 
kind of modern job training system the Nation needs, a system that is 
genuinely driven by the real requirements of workers, job seekers and 
businesses.

  In the last session of Congress, we laid the groundwork for 
bipartisan efforts on job training reform by enacting the School-to-
Work Opportunities Act. This legislation will be a catalyst for States 
and local communities to create better career opportunities for non-
college bound youth. We need to apply that same bipartisan spirit to 
making job training programs more effective for adults.
  In closing, I again commend Senator Daschle for his leadership in 
introducing these important bills. I look forward to working with him 
and with Senators on both sides of the aisle in the weeks and months 
ahead on these and other essential measures to make government more 
responsive to the people and to meet the many serious challenges we 
face.
  Ms. MIKULSKI. Mr. President, I am proud to join as an original 
cosponsor in Senate bills 6-10 introduced today by the Democratic 
leader. They represent a solid effort to help working families, give 
help to those who first practice self help, get the Federal 
Government's fiscal house in order, and reform the Congress.
  Since the November elections, some have been left with the impression 
that the Democratic Party has no vision for the future of our country, 
and that we have abandoned the concerns of the middle class. As a blue 
collar Senator who returns home each night to the city where I was 
born, I believe that these five legislative efforts dispel that myth.
  These five items represent what we believe as Democrats are a 
downpayment on the concerns of middle America--job security and our 
standard of living, affordable health insurance, ending welfare as we 
know it,
 balancing the budget by cutting spending, and reforming the way 
Congress itself does business.

  The first of these initiatives, S. 6, the Working Americans 
Opportunity Act, will enable working Americans to have available a 
lifetime opportunity of employment retraining. It will revamp job 
training programs by consolidating those programs that work and 
eliminating those that don't, providing job training opportunities and 
access to people who practice self help and need new skills for real 
work situations. Finally, it will not require new taxes or spending 
because it replaces, consolidates and eliminates nine existing programs 
and cuts government bureaucracy. Winning the war for America's future 
depends on whether Americans can have jobs today and jobs for the 21st 
century. We simply must have a skilled work force that is equipped and 
ready to compete for the high tech future. S. 6 will get us headed in 
that direction.
  S. 7, the Family Health Insurance Protection Act, is a significant 
first step toward ensuring that all Americans have access to 
affordable, high-quality health insurance coverage. It will ensure that 
no one can be denied health insurance because of a pre-existing medical 
condition and protect workers who change jobs from losing their health 
coverage. It will also prohibit insurers from dropping customers or 
raising their rates once they become ill. It will reduce red tape and 
provide tax incentives to small businesses that provide health 
insurance. This legislation will let us begin to ensure health coverage 
for every American.
  S. 8, the Teenage Pregnancy Prevention and Parental Responsibility 
Act, will make our welfare system a parter--with parents, teachers, and 
clergy--in keeping kids in school and off welfare. As the only social 
worker in the U.S. Senate, I have long fought to make our welfare 
programs reflect America's family values. This legislation will require 
unwed teenage mothers to live with an adult family member or in a 
supervised group home. It will also help communities to develop their 
own solutions to the problem of teen pregnancy. And finally, by 
strengthening our child support laws, this legislation will crack down 
on deadbeats who ignore their responsibility to their children--and 
leave taxpayers will the bill. It is time for us to stop wringing our 
hands about teen pregnancy and do something about it. S. 8 will help us 
reduce teen pregnancy without resorting to orphanages.
  S. 9, the Fiscal Responsibility Act, will ensure that we are honest 
with the American public about balancing the budget. It will require 
the Budget
Committees to report a budget resolution that shows exactly how we are 
to get to a balanced budget by the year 2003--without smoke and 
mirrors. This act will force Congress to match its budget balancing 
rhetoric with real action. The American public deserves to know exactly 
what a balanced budget will mean. It will force Congress to debate the 
real issues and bring honesty and open debate to one of the most 
critical issues facing the Congress and the country. I welcome this 
  debate.S. 10, the Comprehensive congressional Reform Act, is intended 
to help restore the confidence of the American people in their 
democratic institutions. It will make Congress live by the laws it 
imposes on everybody else, require strict disclosure of lobbyist 
activity, ban gifts from lobbyists and impose tough campaign finance 
reform. I am proud to have been among the first Members of Congress to 
win real congressional reform with the passage of my legislation last 
year to reform and modernize the appalling working conditions under 
which the more than 2,000 employees of the Architect of the Capitol 
labored. S. 10 will continue this progress toward real reform.
  I commend our new Democratic Leader, the distinguished Senator from 
South Dakota, for developing this insightful and visionary package of 
measures. They symbolize his desire to tackle the tough issues which 
are foremost on the minds of Americans as we begin 1995.
  While I do not necessarily support each provision within these 
measures, I believe that we should begin the debate on each of these 
subjects on the first day of this new Congress. I believe our party and 
this Congress needs to promote a shared national vision around jobs and 
those who practice selfhelp. I look forward to working with my 
colleagues to see that each of these matters is fully addressed by the 
104th Congress.

[[Page S109]]

  Mr. ROCKEFELLER. Mr. President, giving American workers the 
opportunity to get the education and training they need to effectively 
compete in our modern workplace and highly competitive economy must be 
a priority. That is why I am joining Senator Daschle in introducing S. 
6, the Working Americans Opportunity Act, and I commend him and my 
other colleagues involved in developing this important initiative.
  While there are numerous Federal training programs in existence, 
there also are some valid questions about how effective these efforts 
are. It is time to deal with these questions and make the changes 
necessary to ensure that our programs work more efficiently and 
effectively, both for the participants and the American taxpayers who 
are footing the bills.
  The Working Americans Opportunity Act is an important step in the 
right direction to improve our Federal training programs. This effort 
is designed to streamline existing Federal training programs and give 
participants more say over their job search process and training. The 
bill also proposes a critically needed investment in a ``national labor 
market information system'' so people can get their hands on current 
information that will tell them what fields offer real job 
opportunities. The bill promotes ``one-stop career centers'' to help 
Americans sort through training and career information in one place so 
they can make more organized decisions about their future.
  In cosponsoring this bill, I want to emphasize my continued belief 
that America's--and West Virginia's--battle for the best jobs in world 
depends partly on our workers having the best skills and education. 
Competing in the global economy is a permanent fact of life. And both 
workers and the unemployed in West Virginia want to get the training 
they need to have good jobs.
  But I also want to register a note of caution about the bill's use of 
``vouchers'' as the way to link workers with training. I have some 
questions about this concept, because I do not want to see them turn 
into ``coupons'' for training that is not up to standard. Neither 
workers nor the American taxpayers will be well served if the new 
system does not assure high quality training in fields with real job 
opportunities. Achieving this goal will require a delicate balance and 
strong quality assurance within the new system. Throughout the 
legislative process, I will be working to further strengthen this 
legislation and promote education and training of the best quality for 
American workers.
  Training and education are especially key issues for West Virginia 
and other regions still struggling with unemployment rates above the 
national average and facing major industrial restructuring. I know from 
experience that West Virginians are eager to work and willing to learn 
new skills in order to meet the challenges of our increasingly 
competitive work place. It is essential to ensure that Federal training 
programs meet such needs and provide real opportunities to workers who 
have been dislocated from their careers.
  Our entire country benefits when an American worker gains new skills 
and becomes more productive so it is essential to invest in effective 
Federal training programs. The Working Americans Opportunity Act is a 
step in the right direction, and sends a strong signal about the need 
to move forward.
                                 ______

      By Mr. DASCHLE (for himself, Mr. Kennedy, Mr. Reid, Ms. Mikulski, 
        Mr. Rockefeller, Mr. Dodd, Mr. Breaux, Ms. Moseley-Braun, Mr. 
        Pell, Mrs. Murray, and Mr. Inouye):
  S. 7. A bill to provide for health care reform through health 
insurance market reform and assistance for small business and families, 
and for other purposes; to the Committee on Labor and Human Resources.


                 family health insurance protection act

  Mr. DASCHLE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
                                  S. 7

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Family 
     Health Insurance Protection Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--HEALTH INSURANCE MARKET REFORM

                 Subtitle A--Insurance Market Standards

Sec. 1001. Nondiscrimination based on health status.
Sec. 1002. Guaranteed issue and renewal
Sec. 1003. Rating limitations.
Sec. 1004. Delivery system quality standards.
Sec. 1005. Benchmark benefits package.
Sec. 1006. Risk adjustment.
Sec. 1007. Effective dates.

         Subtitle B--Establishment and Application of Standards

Sec. 1011. General rules.
Sec. 1012. Encouragement of State reforms.
Sec. 1013. Grants to States for small group health insurance purchasing 
              arrangements.
Sec. 1014. Enforcement of standards.

      Subtitle C--Health Care Cost and Access Advisory Commission

Sec. 1021. Health Care Cost and Access Advisory Commission.
Sec. 1022. Duties of Commission.
Sec. 1023. Operation of Commission.

                        Subtitle D--Definitions

Sec. 1031. Definitions.

           TITLE II--IMPROVING ACCESS TO HEALTH CARE COVERAGE

     Subtitle A--Coverage Under Qualified Health Plans and Premium 
                               Assistance

                Part 1--Access to Qualified Health Plans


                     SUBPART A--GENERAL PROVISIONS

Sec. 2001. Establishment of State program.
Sec. 2002. Assistance with health plan premiums.


         SUBPART B--PREMIUM ASSISTANCE TO ELIGIBLE INDIVIDUALS

Sec. 2011. Amount of premium assistance.
Sec. 2012. Assistance to children.
Sec. 2013. Assistance to temporarily unemployed individuals.

                   Part 2--Aggregate Federal Payments

Sec. 2021. Aggregate Federal payments.

           Part 3--Definitions and Determinations of Income.

Sec. 2031. Definitions and determinations of income.
Sec. 2032. References to individual.

          Subtitle B--Self-Employed Health Insurance Deduction

Sec. 2101. Deduction for health insurance costs of self-employed 
              individuals.

               TITLE III--IMPROVING ACCESS IN RURAL AREAS

               Subtitle A--Office of Rural Health Policy

Sec. 3001. Office of Rural Health Policy.

   Subtitle B--Development of Telemedicine in Rural Underserved Areas

Sec. 3101. Grants for development of rural telemedicine.
Sec. 3102. Report and evaluation of telemedicine.
Sec. 3103. Regulations on reimbursement of telemedicine.
Sec. 3104. Authorization of appropriations.
Sec. 3105. Definitions.

          Subtitle C--Rural Health Plan Demonstration Projects

Sec. 3201. Rural health plan demonstration projects.

     Subtitle D--Antitrust Safe Harbors for Rural Health Providers

Sec. 3301. Antitrust safe harbors for rural health providers.

               TITLE IV--QUALITY AND CONSUMER PROTECTION

               Subtitle A--Administrative Simplification

                    Part 1--Purpose and Definitions

Sec. 4001. Purpose.
Sec. 4002. Definitions.

    Part 2--Standards for Data Elements and Information Transactions

Sec. 4011. General requirements on secretary.
Sec. 4012. Standards for health information transactions and data 
              elements.

     Part 3--Requirements With Respect to Certain Transactions and 
                              Information

Sec. 4021. Requirements on health plans and health care providers.
Sec. 4022. Standards and certification for health information 
              protection organizations.

                  Part 4--Accessing Health Information

Sec. 4031. Access for authorized purposes.

                           Part 5--Penalties

Sec. 4041. General penalty for failure to comply with requirements and 
              standards.

                    Part 6--Miscellaneous Provisions

Sec. 4051. Effect on State law.
Sec. 4052. Authorization of appropriations.

               Subtitle B--Privacy of Health Information

                          Part 1--Definitions

Sec. 4101. Definitions.

                     Part 2--Authorized Disclosures


                     SUBPART A--GENERAL PROVISIONS

Sec. 4106. General rules regarding disclosure.
Sec. 4107. Authorizations for disclosure of protected health 
              information.
Sec. 4108. Health information protection organizations.
   [[Page S110]] SUBPART B--SPECIFIC DISCLOSURES RELATING TO PATIENT

Sec. 4111. Disclosures for treatment and financial and administrative 
              transactions.
Sec. 4112. Emergency circumstances.


   SUBPART C--DISCLOSURE FOR OVERSIGHT, PUBLIC HEALTH, AND RESEARCH 
                                PURPOSES

Sec. 4116. Oversight.
Sec. 4117. Public health.
Sec. 4118. Health research.


SUBPART D--DISCLOSURE FOR JUDICIAL, ADMINISTRATIVE, AND LAW ENFORCEMENT 
                                PURPOSES

Sec. 4121. Judicial and administrative purposes.
Sec. 4122. Law enforcement.


    SUBPART E--DISCLOSURE PURSUANT TO GOVERNMENT SUBPOENA OR WARRANT

Sec. 4126. Government subpoenas and warrants.
Sec. 4127. Access procedures for law enforcement subpoenas and 
              warrants.
Sec. 4128. Challenge procedures for law enforcement warrants, 
              subpoenas, and summons.


            SUBPART F--DISCLOSURE PURSUANT TO PARTY SUBPOENA

Sec. 4131. Party subpoenas.
Sec. 4132. Access procedures for party subpoenas.
Sec. 4133. Challenge procedures for party subpoenas.

     Part 3--Procedures for Ensuring Security of Protected Health 
                              Information


                 SUBPART A--ESTABLISHMENT OF SAFEGUARDS

Sec. 4136. Establishment of safeguards.
Sec. 4137. Accounting for disclosures.


 SUBPART B--REVIEW OF PROTECTED HEALTH INFORMATION BY SUBJECTS OF THE 
                              INFORMATION

Sec. 4141. Inspection of protected health information.
Sec. 4142. Amendment of protected health information.
Sec. 4143. Notice of information practices.

                           Part 4--Sanctions


                       SUBPART A--CIVIL SANCTIONS

Sec. 4151. Civil penalty.
Sec. 4152. Civil action.


                     SUBPART B--CRIMINAL SANCTIONS

Sec. 4161. Wrongful disclosure of protected health information.

                   Part 5--Administrative Provisions

Sec. 4166. Relationship to other laws.
Sec. 4167. Rights of incompetents.
Sec. 4168. Exercise of rights.

          Subtitle C--Enhanced Penalties for Health Care Fraud

Sec. 4201. All-payer fraud and abuse control program.
Sec. 4202. Application of Federal health anti-fraud and abuse sanctions 
              to all fraud and abuse against any health plan.
Sec. 4203. Establishment of the health care fraud and abuse data 
              collection program.
Sec. 4204. Health care fraud.

               Subtitle D--Health Care Malpractice Reform

Sec. 4301. Federal tort reform.
Sec. 4302. State-based alternative dispute resolution mechanisms.
Sec. 4303. Limitation on amount of attorney's contingency fees.
Sec. 4304. Periodic payment of awards.
Sec. 4305. Allocation of punitive damage awards for provider licensing 
              and disciplinary activities.

                       TITLE V--BUDGET NEUTRALITY

Sec. 5001. Assurance of budget neutrality.
                TITLE I--HEALTH INSURANCE MARKET REFORM
                 Subtitle A--Insurance Market Standards

     SEC. 1001. NONDISCRIMINATION BASED ON HEALTH STATUS.

       (a) In General.--Except as provided in subsection (b) and 
     section 1003(d), a health plan may not deny, limit, or 
     condition the coverage under (or benefits of) the plan, or 
     vary the premium, for an individual based on the health 
     status, medical condition, claims experience, receipt of 
     health care, medical history, anticipated need for health 
     care services, disability, or lack of evidence of 
     insurability.
       (b) Treatment of Preexisting Condition Exclusions for All 
     Services.--
       (1) In general.--A health plan may impose a limitation or 
     exclusion of benefits relating to treatment of a condition 
     based on the fact that the condition preexisted the effective 
     date of the plan with respect to an individual only if--
       (A) the condition was diagnosed or treated during the 3-
     month period ending on the day before the date of enrollment 
     under the plan;
       (B) the limitation or exclusion extends for a period not 
     more than 6 months after the date of enrollment under the 
     plan;
       (C) the limitation or exclusion does not apply to an 
     individual who, as of the date of birth, was covered under 
     the plan; or
       (D) the limitation or exclusion does not apply to 
     pregnancy.
       (2) Crediting of previous coverage.--A health plan shall 
     provide that if an individual under such plan is in a period 
     of continuous coverage as of the date of enrollment under 
     such plan, any period of exclusion of coverage with respect 
     to a preexisting condition shall be reduced by 1 month for 
     each month in the period of continuous coverage.
       (3) Definitions.--For purposes of this subsection:
       (A) Period of continuous coverage.--
       (i) In general.--The term ``period of continuous coverage'' 
     means the period beginning on the date an individual is 
     enrolled under a health plan or an equivalent health care 
     program and ends on the date the individual is not so 
     enrolled for a continuous period of more than 3 months.
       (ii) Equivalent health care program.--The term ``equivalent 
     health care program'' means--

       (I) part A or part B of the medicare program under title 
     XVIII of the Social Security Act (42 U.S.C. 1395 et seq.),
       (II) the medicaid program under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.),
       (III) the health care program for active military personnel 
     under title 10, United States Code,
       (IV) the veterans health care program under chapter 17 of 
     title 38, United States Code,
       (V) the Civilian Health and Medical Program of the 
     Uniformed Services (CHAMPUS), as defined in section 1073(4) 
     of title 10, United States Code, and
       (VI) the Indian health service program under the Indian 
     Health Care Improvement Act (25 U.S.C. 1601 et seq.).

       (B) Preexisting condition.--The term `preexisting 
     condition' means, with respect to coverage under a health 
     plan, a condition which was diagnosed, or which was treated, 
     within the 3-month period ending on the day before the date 
     of enrollment (without regard to any waiting period).
       (c) Limitations Prohibited.--
       (1) In general.--A health plan may not impose a lifetime 
     limitation on the provision of benefits under the plan.
       (2) Rule of construction.--The prohibition contained in 
     paragraph (1) shall not be construed as prohibiting 
     limitations on the scope or duration of particular items or 
     services covered by a health plan.

     SEC. 1002. GUARANTEED ISSUE AND RENEWAL

       (a) Small Group Market.--Each health plan offering coverage 
     in the small group market shall guarantee each individual 
     purchaser and small employer (and each eligible employee of 
     such small employer) applying for coverage in such market the 
     opportunity to enroll in the plan.
       (b) Large Employer Market.--Each health plan offering 
     coverage in the large employer market shall guarantee any 
     individual eligible for coverage under the plan the 
     opportunity to enroll in such plan.
       (c) Capacity Limits.--Notwithstanding this section, a 
     health plan may apply a capacity limit based on limited 
     financial or provider capacity if the plan enrolls 
     individuals in a manner that provides prospective enrollees 
     with a fair chance of enrollment regardless of the method by 
     which the individual seeks enrollment.
       (d) Renewal of Policy.--
       (1) Small group market.--A health plan issued to a small 
     employer or an individual purchaser in the small group market 
     shall be renewed at the option of the employer or individual, 
     if such employer or individual purchaser remains eligible for 
     coverage under the plan.
       (2) Large employer market.--A health plan issued to an 
     individual eligible for coverage under a large employer plan 
     shall be renewed at the option of the individual, if such 
     individual remains eligible for coverage under the plan.
       (e) Grounds for Refusal to Renew.--A health plan may refuse 
     to renew a policy only in the case of--
       (1) the nonpayment of premiums;
       (2) fraud on the part of the employer or individual 
     relating to such plan; or
       (3) the misrepresentation by the employer or individual of 
     material facts relating to an application for coverage of a 
     claim or benefit.
       (f) Notification of Availability.--Each health plan sponsor 
     shall publicly disclose the availability of each health plan 
     that such sponsor provides or offers in a small group market. 
     Such disclosure shall be accompanied by information 
     describing the method by which eligible employers and 
     individuals may enroll in such plans.

     SEC. 1003. RATING LIMITATIONS.

       (a) In General.--A health plan offering coverage in the 
     small group market shall comply with the standards developed 
     under this section.
       (b) Role of NAIC.--The Secretary shall request that the 
     NAIC--
       (1) develop specific standards in the form of a model Act 
     and model regulations that provide for the implementation of 
     the rating limitations described in subsection (d); and
       (2) report to the Secretary concerning such standards 
     within 6 months after the date of enactment of this Act.
       (c) Role of the Secretary.--The Secretary, upon review of 
     the report received under subsection (b)(2), shall not later 
     than January 1, 1997, promulgate final standards implementing 
     this section. Such standards shall be the applicable health 
     plan standards under this section.
       (d) Rating Standards.--The standards described in this 
     section shall provide for the following:
       (1) A determination of factors that health plans may use to 
     vary the premium rates of such plans. Such factors--
       (A) shall be applied in a uniform fashion to all enrollees 
     covered by a plan;
       (B) shall include age (as specified in paragraph (3)), 
     family type, and geography; and
     [[Page S111]]   (C) except as provided in paragraph (2)(A), 
     shall not include gender, health status, or health 
     expenditures.
       (2)(A) Factors prohibited under paragraph (1)(C) shall be 
     phased out over a period not to exceed 3 years after the 
     effective date of this section.
       (B) Other rating factors (other than age) may be phased out 
     to the extent necessary to minimize market disruption and 
     maximize coverage rates.
       (3) Uniform age categories and age adjustment factors that 
     reflect the relative actuarial costs of benefit packages 
     among enrollees. By the end of the 3-year period beginning on 
     the effective date of this section, for individuals who have 
     attained age 18 but not age 65, the highest age adjustment 
     factor may not exceed 3 times the lowest age adjustment 
     factor.
       (e) Discounts.--Standards developed under this section 
     shall permit health plans to provide premium discounts based 
     on workplace health promoting activities.

     SEC. 1004. DELIVERY SYSTEM QUALITY STANDARDS.

       (a) In General.--Each health plan shall comply with the 
     standards developed under this section.
       (b) Role of the Secretary.--Not later than 9 months after 
     the date of enactment of this Act, the Secretary, in 
     consultation with the NAIC and other organizations with 
     expertise in the areas of quality assurance (including the 
     Joint Commission on Accreditation of Health Care 
     Organizations, the National Committee for Quality Assurance, 
     and peer review organizations), shall establish minimum 
     guidelines specified in subsection (c) for the issuance by 
     each State of delivery system quality standards. Such 
     standards shall be the applicable health plan standards under 
     this section.
       (c) Minimum guidelines.--The minimum guidelines specified 
     in this subsection are as follows:
       (1) Establishing and maintaining health plan quality 
     assurance, including--
       (A) quality management;
       (B) credentialing;
       (C) utilization management;
       (D) health care provider selection and due process in 
     selection; and
       (E) practice guidelines and protocols.
       (2) Providing consumer protection for health plan 
     enrollees, including--
       (A) comparative standardized consumer information with 
     respect to health plan premiums and quality measures, 
     including health care report cards;
       (B) nondiscrimination in plan enrollment, disenrollment, 
     and service provision;
       (C) continuation of treatment with respect to health plans 
     that become insolvent; and
       (D) grievance procedures.
       (3) Ensuring reasonable access to health care services, 
     including access for vulnerable populations in underserved 
     areas.

     SEC. 1005. BENCHMARK BENEFITS PACKAGE.

       (a) In General.--With respect to an individual eligible for 
     enrollment, a sponsor of a health plan--
       (1) shall offer the benchmark benefits package described in 
     subsection (b); and
       (2) may offer any other health benefits package.
       (b) Benchmark Benefits Package Described.--
       (1) In general.--
       (A) Package described.--The benchmark benefits package 
     described in this subsection is a benefits package that 
     covers all of the items and services under the categories of 
     health care items and services specified by the Secretary 
     under paragraph (2) when medically necessary or appropriate 
     (as determined in accordance with paragraph (3)) and provides 
     for a cost-sharing schedule specified by the Secretary under 
     paragraph (4).
       (B) Actuarial value.--The benchmark benefits package 
     established by the Secretary under this subsection shall have 
     an actuarial value that equals the actuarial value of the 
     benefits package provided under the health benefits plan 
     offered under chapter 89 of title 5, United States Code, with 
     the highest enrollment during 1994, adjusted for a national 
     population under 65 years of age (as determined by the 
     Secretary).
       (2) Categories of health care items and services.--
       (A) In general.--The categories of health care items and 
     services specified by the Secretary under this paragraph 
     shall include at least the categories described in section 
     1302(1) of the Public Health Service Act (42 U.S.C. 300e-
     1(a)) and section 8904(a) of title 5, United States Code. The 
     Secretary may add or delete categories of health care items 
     and services under this paragraph as medical practice 
     changes.
       (B) Specifying items and services.--
       (i) In general.--The Secretary shall specify the items and 
     services under the categories specified under subparagraph 
     (A).
       (ii) Priorities for the secretary.--In specifying items and 
     services under this subparagraph the Secretary shall take 
     into account the following:

       (I) Mental health and substance abuse services.--With 
     respect to mental health and substance abuse services, the 
     Secretary shall give priority to parity for such services 
     with other medical services with respect to cost-sharing and 
     duration of treatment.
       (II) Vulnerable populations and underserved areas.--The 
     Secretary shall give priority to the needs of children and 
     vulnerable populations, including those populations in rural, 
     frontier, and underserved areas.
       (III) Prevention.--The Secretary shall give priority to 
     improving the health of individuals through prevention.

       (3) Medical Necessity or Appropriateness.--The Secretary 
     shall establish general criteria for determining whether an 
     item or service specified by the Secretary under paragraph 
     (2)(B) is medically necessary or appropriate. Health plans 
     shall make coverage decisions regarding procedures and 
     technologies consistent with such general criteria.
       (4) Cost-Sharing.--The Secretary shall establish cost-
     sharing schedules to be provided by a benchmark benefits 
     package. In establishing such cost-sharing schedules, the 
     Secretary shall meet the following requirements:
       (A) Annual basis.--The Secretary shall review and update 
     cost-sharing schedules as determined appropriate by the 
     Secretary, but on at least an annual basis.
       (B) Preventive services exempted.--The Secretary shall 
     exempt from any cost-sharing schedules clinical preventive 
     services and prenatal care services.
       (C) Delivery systems.--In establishing cost-sharing 
     schedules for benchmark benefits packages, the Secretary 
     shall ensure that the schedules permit a variety of delivery 
     systems, including fee-for-service, preferred provider 
     organizations, point of service, and health maintenance 
     organizations.

     SEC. 1006. RISK ADJUSTMENT.

       Each health plan offering coverage in the small group 
     market in a State shall participate in a risk adjustment 
     program developed by such State under standards established 
     by the Secretary.

     SEC. 1007. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), this 
     title shall take effect on January 1, 1996.
       (b) Rating Limitations, Benchmark Benefits Packages, and 
     Risk Adjustments.--The standards promulgated under sections 
     1003, 1005, and 1006 shall apply to plans that are issued or 
     renewed after December 31, 1996.
         Subtitle B--Establishment and Application of Standards

     SEC. 1011. GENERAL RULES.

       (a) Construction.--
       (1) In general.--A requirement or standard imposed on a 
     health plan under this Act shall be deemed to be a 
     requirement or standard imposed on the insurer or sponsor of 
     such plan.
       (2) Preemption of state law.--
       (A) In general.--No requirement of this title shall be 
     construed as preempting any State law unless such State law 
     directly conflicts with such requirement. The provision of 
     additional consumer protections under State law as described 
     in subparagraph (B) shall not be considered to directly 
     conflict with any such requirement.
       (B) Consumer protection laws.--State laws referred to in 
     subparagraph (A) that are not preempted by this title 
     include--
       (i) laws that limit the exclusions or limitations for 
     preexisting medical conditions to periods that are less than 
     those provided for under section 1001;
       (ii) laws that limit variations in premium rates beyond the 
     variations permitted under section 1003; and
       (iii) laws that would expand the small group market in 
     excess of that provided for under this title.
       (b) Regulations.--The Secretary, in consultation with NAIC, 
     and the Secretary of Labor are each authorized to issue 
     regulations as are necessary to implement this Act.

     SEC. 1012. ENCOURAGEMENT OF STATE REFORMS.

       Nothing in this Act shall be construed as prohibiting 
     States from enacting health care reform measures that exceed 
     the measures established under this Act, including reforms 
     that expand access to health care services, control health 
     care costs, and enhance quality of care.

     SEC. 1013. GRANTS TO STATES FOR SMALL GROUP HEALTH INSURANCE 
                   PURCHASING ARRANGEMENTS.

       (a) In General.--The Secretary shall make grants to States 
     that submit applications meeting the requirements of this 
     section for the establishment and operation of small group 
     health insurance purchasing arrangements.
       (b) Use of Funds.--Grant funds awarded under this section 
     to a State may be used to finance administrative costs 
     associated with developing and operating a small group health 
     insurance purchasing arrangement, including the costs 
     associated with--
       (1) engaging in marketing and outreach efforts to inform 
     individuals and small employers about the small group health 
     insurance purchasing arrangement, which may include the 
     payment of sales commissions;
       (2) negotiating with insurers to provide health insurance 
     through the small group health insurance purchasing 
     arrangement; or
       (3) providing administrative functions, such as eligibility 
     screening, claims administration, and customer service.
       (c) Application Requirements.--An application submitted by 
     a State to the Secretary shall describe--
       (1) whether the program will be operated directly by the 
     State or through 1 or more State-sponsored private 
     organizations and the details of such operation;
       (2) program goals for reducing the cost of health insurance 
     for, and increasing insurance coverage in, the small group 
     market;
     [[Page S112]]   (3) the approaches proposed for enlisting 
     participation by insurers and small employers, including any 
     plans to use State funds to subsidize the cost of insurance 
     for participating individuals and employers; and
       (4) the methods proposed for evaluating the effectiveness 
     of the program in reducing the number of uninsured in the 
     State and on lowering the cost of health insurance for the 
     small group market in the State.
       (d) Grant Criteria.--In awarding grants, the Secretary 
     shall consider the potential impact of the State's proposal 
     on the cost of health insurance for the small group market 
     and on the number of uninsured, and the need for regional 
     variation in the awarding of grants. To the extent the 
     Secretary deems appropriate, grants shall be awarded to fund 
     programs employing a variety of approaches for establishing 
     small group health insurance purchasing arrangements.
       (e) Prohibition on Grants.--No grant funds shall be paid to 
     States that do not meet the requirements of this title with 
     respect to small group health plans, or to States with group 
     purchasing programs involving small group health plans that 
     do not meet the requirements of this title.
       (f) Annual Report by States.--States receiving grants under 
     this section shall report to the Secretary annually on the 
     numbers and rates of participation by eligible insurers and 
     small employers, on the estimated impact of the program on 
     reducing the number of uninsured, and on the cost of 
     insurance available to the small group market in the State.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated $200,000,000 for fiscal years 1996, 1997, 
     and 1998.
       (h) Secretarial Report.--The Secretary shall report to 
     Congress by not later than January 1, 1997, on the number and 
     amount of grants awarded under this section, and include with 
     such report an evaluation of the impact of the grant program 
     on the number of uninsured and cost of health insurance to 
     small group markets in participating States.

     SEC. 1014. ENFORCEMENT OF STANDARDS.

       (a) In General.--Except as provided in subsection (b), each 
     State shall require that each health plan issued, sold, 
     offered for sale, or operated in such State meets the 
     insurance reform standards established under this title 
     pursuant to an enforcement plan filed by the State with, and 
     approved by, the Secretary. If the State does not file an 
     acceptable plan, the Secretary shall enforce such standards 
     until a plan is filed and approved.
       (b) Secretary of Labor.--With respect to any health plan 
     for which the application of State insurance laws are 
     preempted under section 514 of Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1144), the enforcement of the 
     insurance reform standards established under this title shall 
     be by the Secretary of Labor.
      Subtitle C--Health Care Cost and Access Advisory Commission
     SEC. 1021. HEALTH CARE COST AND ACCESS ADVISORY COMMISSION.

       There is established a commission to be known as the Health 
     Care Cost and Advisory Commission (in this subtitle referred 
     to as the ``Commission'').

     SEC. 1022. DUTIES OF COMMISSION.

       (a) In General.--The general duties of the Commission are 
     to monitor and respond to trends in national health care 
     spending and health insurance coverage. The Commission may be 
     advised by individuals with expertise concerning the 
     economic, demographic, and insurance market factors that 
     affect the cost and availability of health insurance.
       (b) Annual Reports.--
       (1) In general.--The Commission shall report to Congress 
     and the President annually on January 15 (beginning in 1999) 
     on the status of health care spending and health insurance 
     coverage in the nation.
       (2) Contents of report.--Each annual report shall include--
       (A) findings regarding--
       (i) the characteristics of the insured and uninsured, 
     including demographic characteristics, working status, health 
     status, and geographic distribution;
       (ii) the effectiveness of insurance reforms on increasing 
     access to health insurance and making health insurance more 
     affordable; and
       (iii) the effectiveness of cost containment strategies at 
     the Federal and State levels and in the private sector; and
       (B) recommendations for improving access to health 
     insurance and reducing health care cost inflation.

     SEC. 1023. OPERATION OF COMMISSION.

       (a) Membership.--
       (1) In general.--The Commission shall be composed of 11 
     members appointed by the President and confirmed by the 
     Senate. Members shall be appointed not later than 90 days 
     after the date of enactment of this Act.
       (2) Chairperson.--The President shall designate 1 
     individual described in paragraph (1) who shall serve as 
     Chairperson of the Commission.
       (b) Composition.--The membership of the Commission shall 
     include individuals with national recognition for their 
     expertise in health care and health care markets. In 
     appointing members of the Commission, the President shall 
     ensure that no more than 6 members of the Commission are 
     affiliated with the same political party.
       (c) Terms.--
       (1) In general.--The terms of members of the Commission 
     shall be for 6 years, except that of the members first 
     appointed, 4 shall be appointed for an initial term of 4 
     years and 4 shall be appointed for an initial term of 2 
     years.
       (2) Continuation in office.--Upon the expiration of a term 
     of office, a member shall continue to serve until a successor 
     is appointed and qualified.
       (d) Vacancies.--
       (1) In general.--A vacancy in the Commission shall be 
     filled in the same manner as the original appointment, but 
     the individual appointed to fill the vacancy shall serve only 
     for the unexpired portion of the term for which the 
     individual's predecessor was appointed.
       (2) No impairment of function.--A vacancy in the membership 
     of the Commission does not impair the authority of the 
     remaining members to exercise all of the powers of the 
     Commission.
       (3) Acting chairperson.--The Commission may designate a 
     member to act as Chairperson during any period in which there 
     is no Chairperson designated by the President.
       (e) Meetings; Quorum.--
       (1) Meetings.--The Chairperson shall preside at meetings of 
     the Commission, and in the absence of the Chairperson, the 
     Commission shall elect a member to act as Chairperson pro 
     tempore.
       (2) Quorum.--Six members of the Commission shall constitute 
     a quorum thereof.
       (f) Administrative Provisions.--
       (1) Pay and travel expenses.--
       (A) Pay.--Each member shall be paid at a rate equal to the 
     daily equivalent of the minimum annual rate of basic pay 
     payable for level IV of the Executive Schedule under section 
     5315 of title 5, United States Code, for each day (including 
     travel time) during which the member is engaged in the actual 
     performance of duties vested in the Commission.
       (B) Travel expenses.--Members shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with sections 5702 and 5703 of title 5, United 
     States Code.
       (2) Executive director.--
       (A) In general.--The Commission shall, without regard to 
     section 5311(b) of title 5, United States Code, appoint an 
     Executive Director.
       (B) Pay.--The Executive Director shall be paid at a rate 
     equivalent to a rate for the Senior Executive Service.
       (3) Staff.--
       (A) In general.--Subject to subparagraphs (B) and (C), the 
     Executive Director, with the approval of the Commission, may 
     appoint and fix the pay of additional personnel.
       (B) Pay.--The Executive Director may make such appointments 
     without regard to the provisions of title 5, United States 
     Code, governing appointments in the competitive service, and 
     any personnel so appointed may be paid without regard to the 
     provisions of chapter 51 and subchapter III of chapter 53 of 
     such title, relating to classification and General Schedule 
     pay rates, except that an individual so appointed may not 
     receive pay in excess of 120 percent of the annual rate of 
     basic pay payable for GS-15 of the General Schedule.
       (C) Detailed personnel.--Upon request of the Executive 
     Director, the head of any Federal department or agency may 
     detail any of the personnel of that department or agency to 
     the Commission to assist the Commission in carrying out its 
     duties under this Act.
       (4) Other authority.--
       (A) Contract services.--The Commission may procure by 
     contract, to the extent funds are available, the temporary or 
     intermittent services of experts or consultants pursuant to 
     section 3109 of title 5, United States Code.
       (B) Leases and property.--The Commission may lease space 
     and acquire personal property to the extent funds are 
     available.
       (f) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary for the 
     operation of the Commission.
                        Subtitle D--Definitions

     SEC. 1031. DEFINITIONS.

       (a) Health Plan.--For purposes of this title, the term 
     ``health plan'' means a plan that provides, or pays the cost 
     of, health benefits. Such term does not include the 
     following, or any combination thereof:
       (1) Coverage only for accidental death, dismemberment, 
     dental, or vision.
       (2) Coverage providing wages or payments in lieu of wages 
     for any period during which the employee is absent from work 
     on account of sickness or injury.
       (3) A medicare supplemental policy (as defined in section 
     1882(g)(1) of the Social Security Act (42 U.S.C. 
     1395ss(g)(1)).
       (4) Coverage issued as a supplement to liability insurance.
       (5) Worker's compensation or similar insurance.
       (6) Automobile medical-payment insurance.
       (7) A long-term care insurance policy, including a nursing 
     home fixed indemnity policy (unless the Secretary determines 
     that such a policy provides sufficiently comprehensive 
     coverage of a benefit so that it should be treated as a 
     health plan).
       (8) Any plan or arrangement not described in any preceding 
     subparagraph which provides for benefit payments, on a 
     periodic basis, for a specified disease or illness or period 
     of hospitalization without regard to the costs incurred or 
     services rendered during the period to which the payments 
     relate.
       (9) Such other plan or arrangement as the Secretary 
     determines is not a health plan.
     [[Page S113]]   (b) Terms and Rules Relating to the Small 
     Group and Large Employer Markets.--For purposes of this 
     title:
       (1) Small group market.--The term ``small group market'' 
     means the market for health plans which is composed of small 
     employers and individual purchasers.
       (2) Small employer.--The term ``small employer'' means, 
     with respect to any calendar year, any employer if, on each 
     of 20 days during the preceding calendar year (each day being 
     in a different week), such employer (or any predecessor) 
     employed less than 51 employees for some portion of the day.
       (3) Individual purchaser.--The term ``individual 
     purchaser'' means an individual who is not eligible to enroll 
     in a health plan sponsored by a large or small employer.
       (4) Large employer market.--The term ``large employer 
     market'' means the market for health plans which is composed 
     of large employers.
       (5) Large employer.--The term ``large employer''--
       (A) means an employer that is not a small employer; and
       (B) includes a multiemployer plan as defined in section 
     3(37) of the Employment Retirement Income Security Act of 
     1974 (29 U.S.C. 1002(37)) and a plan which is maintained by a 
     rural electric cooperative or a rural telephone cooperative 
     association (within the meaning of section 3(40) of such Act 
     (29 U.S.C. 1002(40)).
       (c) Additional Definitions.--For purposes of this title:
       (1) Naic.--The term ``NAIC'' means the National Association 
     of Insurance Commissioners.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
           TITLE II--IMPROVING ACCESS TO HEALTH CARE COVERAGE
     Subtitle A--Coverage Under Qualified Health Plans and Premium 
                               Assistance

                PART 1--ACCESS TO QUALIFIED HEALTH PLANS

                     Subpart A--General Provisions

     SEC. 2001. ESTABLISHMENT OF STATE PROGRAM.

       In order to qualify for payments under part 2, each State 
     shall establish a program under which the State--
       (1) makes available at least 1 qualified health plan to 
     each premium subsidy eligible individual residing in the 
     State; and
       (2) furnishes premium assistance to such individual in 
     accordance with this part.

     The program shall comply with requirements specified under 
     regulations issued by the Secretary and may be in effect for 
     calendar years beginning after 1996.

     SEC. 2002. ASSISTANCE WITH HEALTH PLAN PREMIUMS.

       (a) In General.--An individual who has been determined by a 
     State under subsection (b) to be a premium subsidy eligible 
     individual (as defined in subpart B) shall be eligible for 
     premium assistance in the amount determined under such 
     subpart.
       (b) Determination of Eligibility.--
       (1) In general.--The Secretary shall issue regulations 
     specifying requirements for each State program under this 
     part with respect to determining eligibility for premium 
     assistance, including measures to prevent individuals from 
     knowingly making material misrepresentations of information 
     or providing false information in applications for assistance 
     under the program.
       (2) Employer maintenance of effort.--In order to promote 
     employer-based coverage, the Secretary shall issue 
     regulations that provide that an eligible individual may not 
     be a premium subsidy eligible individual described in 
     subsection (a) if a significant employer contribution toward 
     the premium under a qualified health plan is available to the 
     individual.
       (3) State maintenance of effort.--In order to promote State 
     maintenance of effort, the Secretary shall issue regulations 
     that provide that an eligible individual may not be a premium 
     subsidy eligible individual described in subsection (a) until 
     such individual has been determined to be ineligible for 
     assistance under any other public health insurance program 
     provided by a State or instrumentality thereof.
       (c) Limitation on Use of Assistance.--A premium subsidy 
     eligible individual who receives premium assistance under 
     this part shall use such assistance only for payments toward 
     the premium under a qualified health plan made available by 
     the State under the program established under section 2001.

         Subpart B--Premium Assistance to Eligible Individuals

     SEC. 2011. AMOUNT OF PREMIUM ASSISTANCE.

       (a) In General.--The amount of premium assistance for a 
     month for a premium subsidy eligible individual in a State is 
     an amount equal to the lesser of--
       (1) the applicable subsidy percentage multiplied by \1/
     12\th of the annual premium paid for coverage under a 
     qualified health plan in which the individual is enrolled; or
       (2) the applicable subsidy percentage multiplied by \1/
     12\th of the maximum subsidy amount (as determined under 
     subsection (b)).
       (b) Maximum subsidy amount.--For purposes of this section, 
     the maximum subsidy amount for a State shall be the 
     Secretary's estimate of the annual premium of the health plan 
     with the highest enrollment offered under chapter 89 of title 
     5, United States Code, adjusted to reflect--
       (1) coverage of the items and services and cost sharing 
     under the benchmark benefits package; and
       (2) the difference in expected health care spending of the 
     population enrolled in such plan offered under such chapter 
     89 and of the population of premium subsidy eligible 
     individuals in such State.

     SEC. 2012. ASSISTANCE TO CHILDREN.

       (a) Eligibility.--A child shall be considered a premium 
     eligible individual under this part if such child--
       (1) is not eligible for medical assistance under a State 
     plan under title XIX of the Social Security Act;
       (2) has not been enrolled in a health plan offered by an 
     employer (under rules established by the Secretary) during 
     the 6-month period ending on the date the individual submits 
     an application to the State for premium assistance under this 
     part, unless such employer coverage was discontinued as a 
     result of a loss of employment by the individual's parent or 
     guardian; and
       (3) has a family income determined under section 2031(3) 
     which does not exceed (except as provided under section 
     2021(b)(3))--
       (A) with respect to 1997, 133 percent of the applicable 
     Federal poverty level;
       (B) with respect to 1998, 150 percent of the applicable 
     Federal poverty level;
       (C) with respect to 1999, 185 percent of the applicable 
     Federal poverty level;
       (D) with respect to 2000, 200 percent of the applicable 
     Federal poverty level;
       (E) with respect to 2001 and years thereafter, 240 percent 
     of the applicable Federal poverty level.
       (b) Applicable Subsidy Percentage.--For the purposes of 
     this part, the term ``applicable subsidy percentage'' for an 
     individual described in subsection (a) means 100 percent 
     reduced (but not below zero) by 1.82 percentage points for 
     every 1 percentage point (or portion thereof) by which the 
     premium subsidy eligible individual's family income exceeds 
     185 percent of the applicable Federal poverty level.

     SEC. 2013. ASSISTANCE TO TEMPORARILY UNEMPLOYED INDIVIDUALS.

       (a) Eligibility.--An eligible individual shall be 
     considered a premium subsidy eligible individual under this 
     part if such individual--
       (1) has been employed continuously for a 6-month period 
     ending within a month preceding the date the individual 
     submits an application to the State for premium assistance 
     under this part;
       (2) has been covered under a health plan during such period 
     of employment;
       (3) is not eligible for medical assistance under a State 
     plan under title XIX of the Social Security Act;
       (4) has not received a premium subsidy under a program 
     established under this subtitle for more than a 6-month 
     period beginning with the date described in paragraph (1); 
     and
       (5) has a family income determined under section 2031(3) 
     which does not exceed (except as provided under section 
     2021(b)(3))--
       (A) with respect to 1997, 100 percent of the applicable 
     Federal poverty level;
       (B) with respect to 1998, 125 percent of the applicable 
     Federal poverty level;
       (C) with respect to 1999, 150 percent of the applicable 
     Federal poverty level;
       (D) with respect to 2000, 200 percent of the applicable 
     Federal poverty level;
       (E) with respect to 2001 and years thereafter, 240 percent 
     of the applicable Federal poverty level.
       (b) Applicable Subsidy Percentage.--For the purposes of 
     this part, the term ``applicable subsidy percentage'' for an 
     individual described in subsection (a) means 100 percent 
     reduced (but not below zero) by 1 percentage point for each 1 
     percentage point (or portion thereof) by which the premium 
     subsidy eligible individual's family income exceeds 100 
     percent of the applicable Federal poverty level.

                   PART 2--AGGREGATE FEDERAL PAYMENTS

     SEC. 2021. AGGREGATE FEDERAL PAYMENTS.

       (a) In General.--Subject to subsection (b), with respect to 
     any quarter beginning on or after January 1, 1997, a State 
     shall receive payments from the Secretary in an amount equal 
     to the sum of--
       (1) the total premium assistance paid on behalf of 
     individuals eligible for such assistance under part 1 for 
     enrollment in qualified health plans; and
       (2) 75 percent of the total amount estimated by the 
     Secretary to be expended by the State during such quarter for 
     proper and efficient operation and administration of the 
     program established under this subtitle.
       (b) Limitations.--
       (1) Budgetary.--
       (A) In general.--The total amount of payments under 
     subsection (a) to all States with programs established under 
     this subtitle for any calender year shall not exceed the 
     estimate by the Congressional Budget Office on January 1, 
     1997, of the total amount of payments under subsection (a) 
     for 1997 (assuming participation levels under full 
     implementation of this subtitle), adjusted for such year by 
     population growth and the increase in health care costs 
     reflected in the cost of providing the benefits package under 
     chapter 89 of title 5, United States Code.
       (B) Allowable adjustments.--If the total payment to States 
     under subsection (a) for any calender year is estimated to be 
     limited under subparagraph (A), corresponding adjustments 
     shall be made to the family income limits under sections 
     2012(a)(3) and 2013(a)(5) for such year.
     [[Page S114]]   (2) Reduction in payments for administrative 
     errors.--
       (A) In general.--In the case of administrative errors 
     described in subparagraph (B), payments available to a State 
     under subsection (a) shall be reduced by an amount determined 
     appropriate by the Secretary.
       (B) Administrative errors described.--The administrative 
     errors described in this subparagraph include the following:
       (i) An eligibility error rate for premium assistance to the 
     extent the applicable error rate exceeds the maximum 
     permissible error rate specified by the Secretary.
       (ii) Misappropriations or other expenditures that the 
     Secretary finds are attributable to malfeasance or 
     misfeasance.
       (c) Reports on Unemployment.--If there are significant 
     changes in the national unemployment level, the Director of 
     the Office of Management and Budget (in consultation with the 
     Secretary) shall issue a report to Congress on the 
     implications for coverage under State programs established 
     under this subtitle.
       (d) Audits.--The Secretary shall conduct regular audits of 
     the activities conducted under this subtitle.
       (e) Budgetary Treatment.--This section constitutes budget 
     authority in advance of appropriations Acts, and represents 
     the obligation of the Federal Government to provide payments 
     to the States in accordance with this section.

           PART 3--DEFINITIONS AND DETERMINATIONS OF INCOME.

     SEC. 2031. DEFINITIONS AND DETERMINATIONS OF INCOME.

       For purposes of this subtitle:
       (1) Qualified health plan.--The term ``qualified health 
     plan'' means a health plan providing the benchmark benefits 
     package as described in section 1005.
       (2) Child.--The term ``child`` means an individual who is 
     under 19 years of age.
       (3) Determinations of income.--
       (A) Family income.--The term ``family income'' means, with 
     respect to an individual who--
       (i) is not a dependent (as defined in subparagraph (B)) of 
     another individual, the sum of the modified adjusted gross 
     incomes (as defined in subparagraph (D)) for the individual, 
     the individual's spouse, and children who are dependents of 
     the individual; or
       (ii) is a dependent of another individual, the sum of the 
     modified adjusted gross incomes for the other individual, the 
     other individual's spouse, and children who are dependents of 
     the other individual.
       (B) Dependent.--The term ``dependent'' has the meaning 
     given such term in section 152 of the Internal Revenue Code 
     of 1986.
       (C) Modified adjusted gross income.--The term ``modified 
     adjusted gross income'' means adjusted gross income (as 
     defined in section 62(a) of the Internal Revenue Code of 
     1986)--
       (i) determined without regard to sections 135, 162(l), 911, 
     931, and 933 of such Code, and
       (ii) increased by--

       (I) the amount of interest received or accrued by the 
     individual during the taxable year which is exempt from tax, 
     and
       (II) the amount of the social security benefits (as defined 
     in section 86(d) of such Code) received during the taxable 
     year to the extent not included in gross income under section 
     86 of such Code.

     The determination under the preceding sentence shall be made 
     without regard to any carryover or carryback.
       (D) Rules relating to disregard of certain income.--The 
     Secretary may promulgate rules under which spousal income may 
     be disregarded in instances in which a spouse is not part of 
     a family unit.
       (4) Eligible Individual.--
       (A) In general.--The term ``eligible individual'' means an 
     individual who is residing in the United States and who is--
       (i) a citizen or national of the United States; or
       (ii) a lawful alien.
       (B) Exclusion.--The term ``eligible individual'' shall not 
     include an individual who is an inmate of a public 
     institution (except as a patient of a medical institution).
       (C) Lawful alien.--The term ``lawful alien'' means an 
     individual who is--
       (i) an alien lawfully admitted for permanent residence,
       (ii) an asylee,
       (iii) a refugee,
       (iv) an alien whose deportation has been withheld under 
     section 243(h) of the Immigration and Nationality Act, or
       (v) a parolee who has been paroled for a period of 1 year 
     or more.
       (5) Poverty line.--The term ``poverty line'' means the 
     income official poverty line (as defined by the Office of 
     Management and Budget, and revised annually in accordance 
     with section 673(2) of the Omnibus Budget Reconciliation Act 
     of 1981) that--
       (A) in the case of a family of less than 5 individuals, is 
     applicable to a family of the size involved; and
       (B) in the case of a family of more than 4 individuals, is 
     applicable to a family of 4 individuals.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.

     SEC. 2032. REFERENCES TO INDIVIDUAL.

       For purposes of this subtitle, any reference to an 
     individual shall include a reference to the parent or 
     guardian of such individual.
          Subtitle B--Self-Employed Health Insurance Deduction

     SEC. 2101. DEDUCTION FOR HEALTH INSURANCE COSTS OF SELF-
                   EMPLOYED INDIVIDUALS.

       (a) Phase-in Deduction.--Section 162(l) of the Internal 
     Revenue Code of 1986 (relating to special rules for health 
     insurance costs of self-employed individuals) is amended--
       (1) by striking paragraph (6); and
       (2) by striking paragraph (1) and inserting the following:
       ``(1) Allowance of deduction.--
       ``(A) In general.--In the case of an individual who is an 
     employee within the meaning of section 401(c)(1), there shall 
     be allowed as a deduction under this section an amount equal 
     to the applicable percentage of the amount paid during the 
     taxable year for insurance which constitutes medical care for 
     the taxpayer, his spouse, and dependents.
       ``(B) Applicable percentage.--For purposes of subparagraph 
     (A), the applicable percentage shall be determined as 
     follows:

``If the taxable year                                    The applicable
begins in:                                               percentage is:
 25 percent............................................................
 50 percent............................................................
 75 percent............................................................
100 percent.''.ter.....................................................
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1993.
               TITLE III--IMPROVING ACCESS IN RURAL AREAS
               Subtitle A--Office of Rural Health Policy

     SEC. 3001. OFFICE OF RURAL HEALTH POLICY.

       (a) Appointment of Assistant Secretary.--
       (1) In general.--Section 711(a) of the Social Security Act 
     (42 U.S.C. 912(a)) is amended--
       (A) by striking ``by a Director, who shall advise the 
     Secretary'' and inserting ``by an Assistant Secretary for 
     Rural Health (in this section referred to as the `Assistant 
     Secretary'), who shall report directly to the Secretary''; 
     and
       (B) by adding at the end the following new sentence: ``The 
     Office shall not be a component of any other office, service, 
     or component of the Department.''.
       (2) Conforming amendments.--(A) Section 711(b) of the 
     Social Security Act (42 U.S.C. 912(b)) is amended by striking 
     ``the Director'' and inserting ``the Assistant Secretary''.
       (B) Section 338J(a) of the Public Health Service Act (42 
     U.S.C. 254r(a)) is amended by striking ``Director of the 
     Office of Rural Health Policy'' and inserting ``Assistant 
     Secretary for Rural Health''.
       (C) Section 464T(b) of the Public Health Service Act (42 
     U.S.C. 285p-2(b)) is amended in the matter preceding 
     paragraph (1) by striking ``Director of the Office of Rural 
     Health Policy'' and inserting ``Assistant Secretary for Rural 
     Health''.
       (D) Section 6213 of the Omnibus Budget Reconciliation Act 
     of 1989 (42 U.S.C. 1395x note) is amended in subsection 
     (e)(1) by striking ``Director of the Office of Rural Health 
     Policy'' and inserting ``Assistant Secretary for Rural 
     Health''.
       (E) Section 403 of the Ryan White Comprehensive AIDS 
     Resources Emergency Act of 1990 (42 U.S.C. 300ff-11 note) is 
     amended in the matter preceding paragraph (1) of subsection 
     (a) by striking ``Director of the Office of Rural Health 
     Policy'' and inserting ``Assistant Secretary for Rural 
     Health''.
       (3) Amendment to the executive schedule.--Section 5315 of 
     title 5, United States Code, is amended by striking 
     ``Assistant Secretaries of Health and Human Services (5)'' 
     and inserting ``Assistant Secretaries of Health and Human 
     Services (6)''.
       (b) Expansion of Duties.--Section 711(a) of the Social 
     Security Act (42 U.S.C. 912(a)) is amended by striking ``and 
     access to (and the quality of) health care in rural areas'' 
     and inserting ``access to, and quality of, health care in 
     rural areas, and reforms to the health care system and the 
     implications of such reforms for rural areas''.
       (c) Transfer of Duties.--Effective January 1, 1996, the 
     functions, powers, duties, and authority that were carried 
     out in accordance with Federal law by the Office of Rural 
     Health Policy in the Department of Health and Human Services 
     are transferred to the Office of the Assistant Secretary for 
     Rural Health in the Department of Health and Human Services.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1996.
   Subtitle B--Development of Telemedicine in Rural Underserved Areas

     SEC. 3101. GRANTS FOR DEVELOPMENT OF RURAL TELEMEDICINE.

       (a) In General.--
       (1) Grants awarded.--The Secretary, acting through the 
     Office of Rural Health Policy, shall award grants to eligible 
     entities that have applications approved under subsection (b) 
     for the purpose of expanding access to health care services 
     for individuals in rural areas through the use of 
     telemedicine. Grants shall be awarded under this section to 
     encourage the initial development of rural telemedicine 
     networks, expand existing networks, link existing networks 
     together, or link such networks to existing fiber optic 
     telecommunications systems.
       (2) Eligible entity.--For purposes of this section, the 
     term ``eligible entity'' includes hospitals and other health 
     care providers in a health care network of community-based 
     providers that includes at least 3 of the following:
       (A) Community or migrant health centers.
       (B) Local health departments.
     [[Page S115]]   (C) Community mental health centers.
       (D) Nonprofit hospitals.
       (E) Private practice health professionals, including rural 
     health clinics.
       (F) Other publicly funded health or social services 
     agencies.
       (b) Application.--To be eligible to receive a grant under 
     this section an entity shall submit to the Secretary an 
     application containing such information as the Secretary may 
     require, including the anticipated need for the grant and the 
     source and amount of non-Federal funds the entity would 
     pledge for the project.
       (c) Preference.--The Secretary shall, in awarding grants 
     under this section, give preference to applicants that--
       (1) are health care providers in rural health care networks 
     or providers that propose to form such networks in medically 
     underserved or health professional shortage areas;
       (2) propose to use Federal funds to develop plans for, or 
     to establish, telemedicine systems that will link rural 
     hospitals and rural health care providers to other hospitals 
     and health care providers; and
       (3) demonstrate financial, institutional, and community 
     support for the long range viability of the network.
       (d) Use of Amounts.--Amounts received under a grant awarded 
     under this section shall be utilized for the development of 
     telemedicine networks. Such amounts may be used to cover the 
     costs associated with the development of telemedicine 
     networks and the acquisition of telemedicine equipment and 
     modifications or improvements of telecommunications 
     facilities as approved by the Secretary.
       (e) Prohibited Uses.--Amounts received under a grant 
     awarded under this section may not be used for any of the 
     following:
       (1) Expenditures to purchase or lease equipment to the 
     extent the expenditures would exceed more than 60 percent of 
     the total grant funds.
       (2) Expenditures for indirect costs (as determined by the 
     Secretary) to the extent the expenditures would exceed more 
     than 10 percent of the total grant funds.

     SEC. 3102. REPORT AND EVALUATION OF TELEMEDICINE.

       Not later than October 1, 1995, the White House Information 
     Infrastructure Task Force shall prepare and submit to 
     Congress a report that evaluates the cost effectiveness and 
     utility of telemedicine and includes recommendations for a 
     coordinated Federal strategy to increase access to health 
     care through telemedicine.

     SEC. 3103. REGULATIONS ON REIMBURSEMENT OF TELEMEDICINE.

       Not later than July 1, 1996, the Secretary, in consultation 
     with the Assistant Secretary for Rural Health and the 
     Administrator of the Health Care Financing Administration, 
     shall issue regulations concerning reimbursement for 
     telemedicine services provided under title XVIII of the 
     Social Security Act.

     SEC. 3104. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated $20,000,000 for 
     each of fiscal years 1996, 1997, 1998, 1999, and 2000, to 
     carry out this subtitle.

     SEC. 3105. DEFINITIONS.

       For purposes of this subtitle:
       (1) Rural health care network.--The term ``rural health 
     care network'' means a group of rural hospitals or other 
     rural health care providers (including clinics, physicians 
     and non-physicians primary care providers) that have entered 
     into a relationship with each other or with nonrural 
     hospitals and health care providers for the purpose of 
     strengthening the delivery of health care services in rural 
     areas or specifically to improve their patients' access to 
     telemedicine services. At least 75 percent of hospitals and 
     other health care providers participating in the network 
     shall be located in rural areas.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
          Subtitle C--Rural Health Plan Demonstration Projects

     SEC. 3201. RURAL HEALTH PLAN DEMONSTRATION PROJECTS.

       (a) In General.--The Secretary of Health and Human 
     Services, in consultation with the Secretary of Labor, shall 
     establish and implement not more than 3 demonstration 
     projects for the designation of rural health plan areas. To 
     be designated as a rural health plan area under this section, 
     an area must be a rural area (as defined in section 
     1866(d)(2)(D) of the Social Security Act (42 U.S.C. 
     1395cc(d)(2)(D))) or an underserved nonurban area in 
     accordance with other criteria specified by the Secretary of 
     Health and Human Services.
       (b) Application.--To be eligible to conduct a demonstration 
     project under this section, an entity shall prepare and 
     submit to the Secretary of Health and Human Services an 
     application containing such information as the Secretary may 
     require to ensure that project participants meet the goals 
     described in subsection (d). An application submitted under 
     this section shall--
       (1) identify the area in which the demonstration project 
     will be conducted; and
       (2) provide assurances that the area described in paragraph 
     (1) meets the requirements of subsection (a).
       (c) Requirements.--An entity offering a health plan (as 
     defined in section 1031(a)) through a demonstration project 
     under this section shall--
       (1) have a recognized, long-standing relationship with the 
     rural community in which the project is being conducted; and
       (2) ensure that the plan meets the requirements for health 
     plans under title I.
       (d) Goals.--The goals referred to in this subsection are as 
     follows:
       (1) To develop a reliable supply of health care providers 
     and rural health service delivery infrastructures with a 
     sound financial footing.
       (2) To develop a mechanism to begin to provide the benefits 
     of networking found in urban health systems to rural 
     Americans living in rural health plan areas.
       (e) Report.--Not later than 360 days after the date on 
     which the first demonstration project is implemented under 
     this section, and annually thereafter for each year in which 
     a project is being conducted, the Secretary of Health and 
     Human Services shall submit to Congress a report that 
     evaluates the effectiveness of such projects. Such reports 
     shall include any legislative recommendations determined 
     appropriate by the Secretary.
     Subtitle D--Antitrust Safe Harbors for Rural Health Providers

     SEC. 3301. ANTITRUST SAFE HARBORS FOR RURAL HEALTH PROVIDERS.

       (a) In General.--The Attorney General of the United States, 
     in consultation with the Commissioner of the Federal Trade 
     Commission, shall establish policy guidelines to assist rural 
     health care providers in complying with safe harbor 
     requirements with respect to the conduct of activities 
     relating to the provision of health care services in rural 
     areas.
       (b) Dissemination of Information.--The Attorney General, in 
     consultation with the Commissioner of the Federal Trade 
     Commission and the Assistant Secretary for Rural Health, 
     shall develop methods for the dissemination of the guidelines 
     established under subsection (a) to rural health care 
     providers.
       (c) Publication of Additional Safe Harbors.--Not later than 
     120 days after the date of enactment of this Act, the 
     Attorney General shall publish in the Federal Register the 
     guidelines established under subsection (a) together with any 
     proposed additional safe harbors for rural providers of 
     health care services.
               TITLE IV--QUALITY AND CONSUMER PROTECTION
               Subtitle A--Administrative Simplification

                    PART 1--PURPOSE AND DEFINITIONS

     SEC. 4001. PURPOSE.

       (a) In General.--It is the purpose of this subtitle to 
     promote administrative simplification, enhance the usefulness 
     of health information, and protect privacy through the 
     establishment of a national framework for health information.
       (b) Goals of Framework.--By standardizing data elements, 
     code sets, and electronic transactions, and by assuring a 
     secure environment for the transmission and exchange of 
     health information, it is the goal of the national framework 
     to reduce the burden of administrative complexity, paper 
     work, and cost on the health care system, including the 
     medicare program under title XVIII of the Social Security Act 
     and the medicaid program under title XIX of such Act. It is 
     the further goal of the national framework to enable the 
     information routinely collected in the health care and claims 
     processes to be used for other health related purposes, 
     including promoting access and quality of care, achieving 
     public health objectives, improving the detection of fraud 
     and abuse, and advancing medical research.

     SEC. 4002. DEFINITIONS.

       (a) Definitions for Title.--For purposes of this title:
       (1) Health care provider.--The term ``health care 
     provider'' means any person furnishing health care services 
     or supplies.
       (2) Health information.--The term ``health information'' 
     means any information, whether oral or recorded in any form 
     or medium that--
       (A) is created or received by a health care provider, 
     health plan, health oversight agency (as defined in section 
     4101), health researcher, public health authority (as defined 
     in section 4101), employer, life insurer, school or 
     university, or certified health information network service; 
     and
       (B) relates to the past, present, or future physical or 
     mental health or condition of an individual, the provision of 
     health care to an individual, or the past, present, or future 
     payment for the provision of health care to an individual.
       (3) Health information protection organization.--The term 
     ``health information protection organization'' means a 
     private entity or an entity operated by a State, certified 
     under section 4022, that accesses standard data elements of 
     health information through the health information network 
     and--
       (A) stores such information; and
       (B) processes such information into non-identifiable health 
     information and discloses such information in accordance with 
     subtitle B.
       (4) Health plan.--The term ``health plan'' has the meaning 
     given such term in section 1031(a) except that such term 
     shall include paragraphs (3), (4), (5), (6), (7), (8), and 
     (9) of such section.
       (5) Non-identifiable health information.--The term ``non-
     identifiable health information'' means health information 
     that is not protected health information as defined in 
     section 4101.
       (6) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
     [[Page S116]]   (b) Definitions for Subtitle.--For purposes 
     of this subtitle:
       (1) Code set.--The term ``code set'' means any set of codes 
     used for encoding data elements, such as tables of terms, 
     medical concepts, medical diagnostic codes, or medical 
     procedure codes.
       (2) Coordination of benefits.--The term ``coordination of 
     benefits'' means determining and coordinating the financial 
     obligations of health plans when health care benefits are 
     payable under 2 or more health plans.
       (3) Health information network.--The term ``health 
     information network'' means the health information system 
     that is formed through the application of the requirements 
     and standards established under this subtitle.
       (4) Standard.--The term ``standard'', when referring to an 
     information transaction or to data elements of health 
     information, means the transaction or data elements meet any 
     standard adopted by the Secretary under part 2 that applies 
     to such information transaction or data elements.

    PART 2--STANDARDS FOR DATA ELEMENTS AND INFORMATION TRANSACTIONS

     SEC. 4011. GENERAL REQUIREMENTS ON SECRETARY.

       The Secretary shall adopt standards and modifications to 
     standards under this subtitle relying, if possible, on 
     standards in use and generally accepted or developed or 
     modified by the standards setting organizations accredited by 
     the American National Standard Institute (ANSI).

     SEC. 4012. STANDARDS FOR HEALTH INFORMATION TRANSACTIONS AND 
                   DATA ELEMENTS.

       (a) In General.--The Secretary shall adopt standards for 
     transactions, data elements, and code sets, to make uniform 
     and able to be exchanged electronically health information 
     that is--
       (1) appropriate for the following financial and 
     administrative transactions: claims (including coordination 
     of benefits) or equivalent encounter information in the case 
     of health care providers that do not file claims, claims 
     attachments, enrollment and disenrollment, eligibility, 
     payment and remittance advice, premium payments, first report 
     of injury, claims status, and referral certification and 
     authorization;
       (2) related to other transactions determined appropriate by 
     the Secretary consistent with the goals of improving the 
     health care system and reducing administrative costs; and
       (3) related to inquiries by a health information protection 
     organization with respect to information standardized under 
     paragraph (1) or (2).
       (b) Unique Health Identifiers.--The Secretary shall adopt 
     standards providing for a standard unique health identifier 
     for each individual, employer, health plan, and health care 
     provider for use in the health care system.
       (c) Code Sets.--
       (1) In general.--The Secretary shall, if possible, select 
     code sets from among the code sets that have been developed, 
     and shall establish efficient and low-cost procedures for 
     distribution of code sets and modifications made to such code 
     sets under section 4013(b).
       (2) Additions and modifications to code sets.--The 
     Secretary shall ensure that procedures exist for the routine 
     maintenance, testing, enhancement, and expansion of code sets 
     to accommodate changes in biomedical science and health care 
     delivery. Modified code sets shall be adopted not more 
     frequently than once every 6 months.
       (d) Electronic Signature.--The Secretary, in coordination 
     with the Secretary of Commerce, shall promulgate regulations 
     specifying procedures for the electronic transmission and 
     authentication of signatures, compliance with which shall be 
     deemed to satisfy Federal and State statutory requirements 
     for written signatures with respect to information 
     transactions required by this subtitle and written signatures 
     on medical records and prescriptions.
       (e) Special Rules for Coordination of Benefits.--Any 
     standards adopted under subsection (a) that relate to 
     coordination of benefits shall provide that a claim for 
     reimbursement for medical services furnished is tested by an 
     algorithm specified by the Secretary against all records that 
     are electronically available through the health information 
     network relating to enrollment and eligibility for the 
     individual who received such services to determine any 
     primary and secondary obligers for payment.

     PART 3--REQUIREMENTS WITH RESPECT TO CERTAIN TRANSACTIONS AND 
                              INFORMATION

     SEC. 4021. REQUIREMENTS ON HEALTH PLANS AND HEALTH CARE 
                   PROVIDERS.

       (a) In General.--A health plan or health care provider 
     shall conduct transactions described in section 4012(a) as 
     standard transactions.
       (b) Compliance.--Not later than 12 months after the date on 
     which a standard is adopted under part 2, a health plan or 
     health care provider shall comply with the requirement under 
     subsection (a) with respect to such standard.
       (c) Response to Electronic Inquiry.--If a health plan or 
     health care provider conducts a transaction in compliance 
     with subsection (a), such transaction and the standard data 
     elements of such transaction shall be made available 
     electronically, in accordance with section 4031, in response 
     to an electronic inquiry from a health information protection 
     organization.

     SEC. 4022. STANDARDS AND CERTIFICATION FOR HEALTH INFORMATION 
                   PROTECTION ORGANIZATIONS.

       (a) Standards for Operation.--The Secretary shall establish 
     standards with respect to the operation and certification of 
     health information protection organizations, including 
     standards ensuring that--
       (1) such organizations have capabilities, policies, and 
     procedures in place that are consistent with the privacy 
     requirements under subtitle B; and
       (2) such organizations, if part of a larger organization, 
     have policies and procedures in place which isolate their 
     information processing activities in a manner that prevents 
     unauthorized access to such information by such larger 
     organization.
       (b) Certification by Private Entities.--The Secretary may 
     designate private entities to conduct the certification 
     procedures established by the Secretary under this section.

                  PART 4--ACCESSING HEALTH INFORMATION

     SEC. 4031. ACCESS FOR AUTHORIZED PURPOSES.

       (a) In General.--The Secretary shall adopt technical 
     standards for appropriate persons to locate and access the 
     health information that is available through the health 
     information network. Such technical standards shall ensure 
     that any request to locate or access information shall be 
     authorized under subtitle B.
       (b) Government Agencies.--
       (1) In general.--Health information protection 
     organizations shall make available to a Federal or State 
     agency pursuant to a Federal Acquisition Regulation (or an 
     equivalent State system), any non-identifiable health 
     information that is requested by such agency.
       (2) Certain information available at low cost.--If a health 
     information protection organization described in paragraph 
     (1) needs information from a health plan, health care 
     provider, or other health information protection organization 
     in order to comply with a request of a Federal or State 
     agency under this Act, such plan, provider, or other 
     organization shall make such information available to such 
     organization for a charge that does not exceed the reasonable 
     cost of transmitting the information.
       (c) Modifications to Standards.--Rules similar to rules 
     under section 4012(c)(2) shall apply to modifications to 
     standards under this part.

                           PART 5--PENALTIES

     SEC. 4041. GENERAL PENALTY FOR FAILURE TO COMPLY WITH 
                   REQUIREMENTS AND STANDARDS.

       (a) In General.--Except as provided in subsection (b), the 
     Secretary shall impose on any person that violates a 
     requirement or standard imposed under this subtitle a penalty 
     of not more than $1,000 for each violation. The provisions of 
     section 1128A of the Social Security Act (42 U.S.C. 1320a-7a) 
     (other than subsections (a) and (b) and the second sentence 
     of subsection (f)) shall apply to the imposition of a civil 
     money penalty under this subsection in the same manner as 
     such provisions apply to the imposition of a penalty under 
     such section 1128A.
       (b) Limitations.--
       (1) Noncompliance not discovered.--A penalty may not be 
     imposed under subsection (a) if it is established to the 
     satisfaction of the Secretary that the person liable for the 
     penalty did not know, and by exercising reasonable diligence 
     would not have known, that such person failed to comply with 
     the requirement or standard described in subsection (a).
       (2) Failures due to reasonable cause.--A penalty may not be 
     imposed under subsection (a) if the failure to comply was due 
     to reasonable cause and not to willful neglect, and the 
     failure to comply is corrected during the time period 
     established by the Secretary.
       (3) Reduction.--In the case of a failure to comply which is 
     due to reasonable cause and not to willful neglect, any 
     penalty under subsection (a) that is not entirely waived 
     under paragraph (2) may be waived to the extent that the 
     payment of such penalty would be excessive relative to the 
     compliance failure involved.

                    PART 6--MISCELLANEOUS PROVISIONS

     SEC. 4051. EFFECT ON STATE LAW.

       (a) In General.--Except as provided in subsection (b), a 
     provision, requirement, or standard under this subtitle shall 
     supersede any contrary provision of State law, including--
       (1) any law that requires medical or health plan records 
     (including billing information) to be maintained or 
     transmitted in writing, and
       (2) a provision of State law which provides for 
     requirements or standards that are more stringent than the 
     requirements or standards under this subtitle;
     except if the Secretary determines that the provision is 
     necessary to prevent fraud and abuse, with respect to 
     controlled substances, or for other purposes.
       (b) Public Health Reporting.--Nothing in this subtitle 
     shall be construed to invalidate or limit the authority, 
     power, or procedures established under any law providing for 
     the reporting of disease or injury, child abuse, birth, or 
     death, public health surveillance, or public health 
     investigation or intervention.
     [[Page S117]] SEC. 4052. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out the purposes of this subtitle.
               Subtitle B--Privacy of Health Information

                          PART 1--DEFINITIONS

     SEC. 4101. DEFINITIONS.

       For purposes of this subtitle:
       (1) Protected health information.--The term ``protected 
     health information'' means any information, including 
     demographic information collected from an individual, whether 
     oral or recorded in any form or medium, that--
       (A) is created or received by a health care provider, 
     health plan, health oversight agency, health researcher, 
     public health authority, employer, life insurer, school or 
     university, or health information protection organization; 
     and
       (B) relates to the past, present, or future physical or 
     mental health or condition of an individual, the provision of 
     health care to an individual, or the past, present, or future 
     payment for the provision of health care to an individual, 
     and--
       (i) identifies an individual; or
       (ii) with respect to which there is a reasonable basis to 
     believe that the information can be used to identify an 
     individual.
       (2) Disclose.--The term ``disclose'', when used with 
     respect to protected health information, means to provide 
     access to the information, but only if such access is 
     provided to a person other than the individual who is the 
     subject of the information.
       (3) Health information trustee.--The term ``health 
     information trustee'' means--
       (A) a health care provider, health plan, health oversight 
     agency, health information protection organization, employer, 
     life insurer, or school or university insofar as it creates, 
     receives, maintains, uses, or transmits protected health 
     information;
       (B) any person who obtains protected health information 
     under section 4108, 4111, 4116, 4117, 4118, 4121, 4122, 4126, 
     or 4131; and
       (C) any employee or agent of a person covered under 
     subparagraphs (A) or (B).
       (4) Health oversight agency.--The term ``health oversight 
     agency'' means a person who--
       (A) performs or oversees the performance of an assessment, 
     evaluation, determination, or investigation relating to the 
     licensing, accreditation, or certification of health care 
     providers; or
       (B)(i) performs or oversees the performance of an 
     assessment, evaluation, determination, investigation, or 
     prosecution relating to the effectiveness of, compliance 
     with, or applicability of legal, fiscal, medical, or 
     scientific standards or aspects of performance related to the 
     delivery of, or payment for health care or relating to health 
     care fraud or fraudulent claims for payment regarding health 
     care; and
       (ii) is a public agency, acting on behalf of a public 
     agency, acting pursuant to a requirement of a public agency, 
     or carrying out activities under a Federal or State law 
     governing the assessment, evaluation, determination, 
     investigation, or prosecution described in clause (i).
       (5) Public health authority.--The term ``public health 
     authority'' means an authority or instrumentality of the 
     United States, a State, or a political subdivision of a State 
     that is--
       (A) responsible for public health matters; and
       (B) engaged in such activities as injury reporting, public 
     health surveillance, and public health investigation or 
     intervention.
       (6) Individual representative.--The term ``individual 
     representative'' means any individual legally empowered to 
     make decisions concerning the provision of health care to an 
     individual (if the individual lacks the legal capacity under 
     State law to make such decisions) or the administrator or 
     executor of the estate of a deceased individual.
       (7) Person.--The term ``person'' includes an authority of 
     the United States, a State, or a political subdivision of a 
     State.

                     PART 2--AUTHORIZED DISCLOSURES

                     Subpart A--General Provisions

     SEC. 4106. GENERAL RULES REGARDING DISCLOSURE.

       (a) General Rule.--A health information trustee may 
     disclose protected health information only for a purpose that 
     is authorized under this subtitle.
       (b) Disclosure Within a Trustee.--A health information 
     trustee may disclose protected health information to an 
     officer, employee, or agent of the trustee for a purpose that 
     is compatible with and related to the purpose for which the 
     information was collected or received by that trustee.
       (c) Scope of Disclosure.--Every disclosure of protected 
     health information by a health information trustee shall be 
     limited to the minimum amount of information necessary to 
     accomplish the purpose for which the information is 
     disclosed.
       (d) No General Requirement to Disclose.--Nothing in this 
     subtitle that permits a disclosure of health information 
     shall be construed to require such disclosure.
       (e) Use and Redisclosure of Information.--Protected health 
     information about an individual that is disclosed under this 
     subtitle may not be used in, or disclosed to any person for 
     use in, any administrative, civil, or criminal action or 
     investigation directed against the individual unless the 
     action or investigation arises out of or is directly related 
     to the law enforcement inquiry for which the information was 
     obtained.
       (f) Identification of Disclosed Information as Protected 
     Information.--When engaging in a permitted disclosure, a 
     health information trustee shall clearly identify protected 
     health information as such and as protected by this subtitle, 
     unless the disclosure is made under section 4112 or is a 
     routine disclosure made under a written agreement which 
     satisfies this subsection.
       (g) Directory Information.--A health care provider and a 
     person receiving protected health information under section 
     4112 may disclose protected health information to any person 
     if the information consists only of 1 or more of the 
     following items:
       (1) The the name of the individual who is the subject of 
     the information.
       (2) If the individual who is the subject of the information 
     is receiving health care from a health care provider on a 
     premises controlled by the provider--
       (A) the location of the individual on the premises; and
       (B) the general health status of the individual, described 
     as critical, poor, fair, stable, or satisfactory, or in terms 
     denoting similar conditions.
       (h) Next of Kin.--A health care provider or person who 
     receives protected health information under section 4112 may 
     disclose protected health information to the next of kin, an 
     individual representative of the individual who is the 
     subject of the information, or an individual with whom that 
     individual has a close personal relationship if--
       (1) the individual who is the subject of the information--
       (A) has been notified of the individual's right to object 
     and has not objected to the disclosure;
       (B) is not competent to be notified about the right to 
     object; or
       (C) is subject to exigent circumstances such that it would 
     not be practicable to notify the individual of the right to 
     object; and
       (2) the information disclosed relates to health care 
     currently being provided to that individual.
       (i) Information in Which Providers are Identified.--The 
     Secretary may issue regulations protecting information 
     identifying providers in order to promote the availability of 
     health care services.

     SEC. 4107. AUTHORIZATIONS FOR DISCLOSURE OF PROTECTED HEALTH 
                   INFORMATION.

       (a) Written Authorizations.--A health information trustee 
     may disclose protected health information pursuant to an 
     authorization executed by the individual who is the subject 
     of the information under regulations issued by the Secretary.
       (b) Written Objections to Disclosure.--Except if required 
     by law, nothing in this subtitle that permits a disclosure 
     shall allow such disclosure if the subject of the protected 
     health information has previously objected to disclosure in 
     writing.

     SEC. 4108. HEALTH INFORMATION PROTECTION ORGANIZATIONS.

       A health information trustee may disclose protected health 
     information to a health information protection organization 
     for the purpose of creating non-identifiable health 
     information.

          Subpart B--Specific Disclosures Relating to Patient

     SEC. 4111. DISCLOSURES FOR TREATMENT AND FINANCIAL AND 
                   ADMINISTRATIVE TRANSACTIONS.

       (a) Health Care Treatment.--A health care provider, health 
     plan, employer, or person who receives protected health 
     information under section 4112, may disclose protected health 
     information to a health care provider for the purpose of 
     providing health care to an individual.
       (b) Disclosure for Financial and Administrative Purposes.--
     A health care provider or employer may disclose protected 
     health information to a health care provider or health plan 
     for the purpose of providing for the payment for, or 
     reviewing the payment of, health care furnished to an 
     individual.

     SEC. 4112. EMERGENCY CIRCUMSTANCES.

       A health care provider, health plan, employer, or person 
     who receives protected health information under this section 
     may disclose protected health information in emergency 
     circumstances when necessary to protect the health or safety 
     of an individual from imminent harm.

   Subpart C--Disclosure for Oversight, Public Health, and Research 
                                Purposes

     SEC. 4116. OVERSIGHT.

       A health information trustee may disclose protected health 
     information to a health oversight agency for an oversight 
     function authorized by law.

     SEC. 4117. PUBLIC HEALTH.

       A health care provider, health plan, public health 
     authority, employer, or person who receives protected health 
     information under section 4112 may disclose protected health 
     information to a public health authority or other person 
     authorized by law for use in a legally authorized--
       (1) disease or injury reporting;
       (2) public health surveillance; or
       (3) public health investigation or intervention.

     SEC. 4118. HEALTH RESEARCH.

       (a) In General.--A health information trustee may disclose 
     protected health information to a health researcher if an 
     institutional review board determines that the research 
     project engaged in by the health researcher--
     [[Page S118]]   (1) requires use of the protected health 
     information for the effectiveness of the project; and
       (2) is of sufficient importance to outweigh the intrusion 
     into the privacy of the individual who is the subject of the 
     information that would result from the disclosure.
       (b) Research Requiring Direct Contact.--A health care 
     provider or health plan may disclose protected health 
     information to a health researcher for a research project 
     that includes direct contact with an individual who is the 
     subject of protected health information if an institutional 
     review board determines that direct contact is necessary and 
     will be made in a manner that minimizes the risk of harm, 
     embarrassment, or other adverse consequences to the 
     individual.
       (c) Obligations of Recipient.--A person who receives 
     protected health information under subsection (a) shall use 
     such information solely for the purposes of the approved 
     research project and shall remove or destroy, at the earliest 
     opportunity consistent with the purposes of the project, 
     information that would enable an individual to be identified.

Subpart D--Disclosure For Judicial, Administrative, and Law Enforcement 
                                Purposes

     SEC. 4121. JUDICIAL AND ADMINISTRATIVE PURPOSES.

       A health care provider, health plan, health oversight 
     agency, or employer may disclose protected health 
     information, subject to a court's rules of procedure--
       (1) in connection with litigation or proceedings to which 
     the individual who is the subject of the information is a 
     party and in which the individual has placed the individual's 
     physical or mental condition at issue;
       (2) if the protected health information is developed in 
     response to a court-ordered physical or mental examination; 
     or
       (3) pursuant to a law requiring the reporting of specific 
     medical information to law enforcement authorities.

     SEC. 4122. LAW ENFORCEMENT.

       (a) In General.--A health care provider, health plan, 
     health oversight agency, employer, or person who receives 
     protected health information under section 4112 may disclose 
     protected health information to a law enforcement agency 
     (other than a health oversight agency governed by section 
     4116) if the information is requested for use--
       (1) in an investigation or prosecution of a health 
     information trustee;
       (2) in the identification of a victim or witness in a law 
     enforcement inquiry; or
       (3) in connection with the investigation of criminal 
     activity committed against the trustee or on premises 
     controlled by the trustee.
       (b) Written Certification.--If a law enforcement agency 
     (other than a health oversight agency) requests that a health 
     information trustee disclose protected health information 
     under this section, such agency shall provide the trustee 
     with a written certification that--
       (1) specifies the information requested;
       (2) states that the information is needed for a lawful 
     purpose under this section; and
       (3) is signed by a supervisory official of a rank 
     designated by the head of the agency.

    Subpart E--Disclosure Pursuant to Government Subpoena or Warrant

     SEC. 4126. GOVERNMENT SUBPOENAS AND WARRANTS.

       A health care provider, health plan, health oversight 
     agency, employer, or person who receives protected health 
     information under section 4112 may disclose protected health 
     information under this section if the disclosure is pursuant 
     to--
       (1) an administrative subpoena or summons, a judicial 
     subpoena or warrant, or a grand jury subpoena, and the 
     trustee is provided written certification that section 4127 
     has been complied with by the person seeking the subpoena or 
     summons; or
       (2) an administrative subpoena or summons, a judicial 
     subpoena or warrant, or a grand jury subpoena, and the 
     disclosure otherwise meets the conditions of section 4116, 
     4117, 4118, 4121, or 4122.

     SEC. 4127. ACCESS PROCEDURES FOR LAW ENFORCEMENT SUBPOENAS 
                   AND WARRANTS.

       (a) Probable Cause Requirement.--A government authority may 
     not obtain protected health information about an individual 
     under paragraph (1) or (2) of section 4126 for use in a law 
     enforcement inquiry unless there is probable cause to believe 
     that the information is relevant to a legitimate law 
     enforcement inquiry being conducted by the government 
     authority.
       (b) Warrants.--A government authority that obtains 
     protected health information about an individual under 
     circumstances described in subsection (a) and pursuant to a 
     warrant shall, not later than 30 days after the date the 
     warrant was executed, serve the individual with, or mail to 
     the last known address of the individual, a notice that 
     protected health information about the individual was so 
     obtained, together with a notice of the individual's right to 
     challenge the warrant.
       (c) Subpoena or Summons.--Except as provided in subsection 
     (d), a government authority may not obtain protected health 
     information about an individual under circumstances described 
     in subsection (a) and pursuant to a subpoena or summons 
     unless a copy of the subpoena or summons has been served on 
     the individual on or before the date of return of the 
     subpoena or summons, together with notice of the individual's 
     right to challenge the subpoena or summons. No disclosure may 
     be made until after the 15th day after the individual has 
     been served or after a court order allowing disclosure.
       (d) Application for Delay.--
       (1) In general.--A government authority may apply ex parte 
     and under seal to an appropriate court to delay (or extend a 
     delay) serving a notice or copy of a warrant, subpoena, or 
     summons required under subsection (b) or (c). The initial 
     period of delay may not exceed 90 days.
       (2) Ex parte order.--The court shall enter an ex parte 
     order delaying or extending the delay of notice, an order 
     prohibiting the disclosure of the request for, or disclosure 
     of, the protected health information, and an order requiring 
     the disclosure of the protected health information if the 
     court finds that--
       (A) the inquiry being conducted is within the lawful 
     jurisdiction of the government authority seeking the 
     protected health information;
       (B) there is probable cause to believe that the protected 
     health information being sought is relevant to a legitimate 
     law enforcement inquiry;
       (C) the government authority's need for the information 
     outweighs the privacy interest of the individual who is the 
     subject of the information; and
       (D) there is reasonable ground to believe that receipt of 
     notice by the individual will result in--
       (i) endangering the life or physical safety of any 
     individual;
       (ii) flight from prosecution;
       (iii) destruction of or tampering with evidence or the 
     information being sought;
       (iv) intimidation of potential witnesses; or
       (v) disclosure of the existence or nature of a confidential 
     law enforcement investigation or grand jury investigation is 
     likely to seriously jeopardize such investigation.

     SEC. 4128. CHALLENGE PROCEDURES FOR LAW ENFORCEMENT WARRANTS, 
                   SUBPOENAS, AND SUMMONS.

       (a) Motion To Quash.--Within 15 days after the date of 
     service of a notice of execution or a copy of a warrant, 
     subpoena, or summons of a government authority seeking 
     protected health information about an individual under 
     paragraph (1) or (2) of section 4126, the individual may file 
     a motion to quash.
       (b) Standard for Decision.--The court shall grant a motion 
     under subsection (a) unless the government demonstrates that 
     there is probable cause to believe the protected health 
     information is relevant to a legitimate law enforcement 
     inquiry being conducted by the government authority and the 
     government authority's need for the information outweighs the 
     privacy interest of the individual.

            Subpart F--Disclosure Pursuant to Party Subpoena

     SEC. 4131. PARTY SUBPOENAS.

       A health care provider, health plan, employer, or person 
     who receives protected health information under section 4112 
     may disclose protected health information under this section 
     if the disclosure is pursuant to a subpoena issued on behalf 
     of a party who has complied with the access provisions of 
     section 4132.

     SEC. 4132. ACCESS PROCEDURES FOR PARTY SUBPOENAS.

       A party may not obtain protected health information about 
     an individual pursuant to a subpoena unless a copy of the 
     subpoena together with a notice of the individual's right to 
     challenge the subpoena in accordance with section 4133 has 
     been served upon the individual on or before the date of 
     return of the subpoena.

     SEC. 4133. CHALLENGE PROCEDURES FOR PARTY SUBPOENAS.

       (a) Motion To Quash Subpoena.--After service of a copy of 
     the subpoena seeking protected health information under 
     section 4131, the individual who is the subject of the 
     protected health information may file in any court of 
     competent jurisdiction a motion to quash the subpoena.
       (b) Standard for Decision.--The court shall grant a motion 
     under subsection (a) unless the respondent demonstrates 
     that--
       (1) there is reasonable ground to believe the information 
     is relevant to a lawsuit or other judicial or administrative 
     proceeding; and
       (2) the need of the respondent for the information 
     outweighs the privacy interest of the individual.

     PART 3--PROCEDURES FOR ENSURING SECURITY OF PROTECTED HEALTH 
                              INFORMATION

                 Subpart A--Establishment of Safeguards

     SEC. 4136. ESTABLISHMENT OF SAFEGUARDS.

       A health information trustee shall establish and maintain 
     appropriate administrative, technical, and physical 
     safeguards to ensure the integrity and confidentiality of 
     protected health information created or received by the 
     trustee.

     SEC. 4137. ACCOUNTING FOR DISCLOSURES.

       A health information trustee shall create and maintain, 
     with respect to any protected health information disclosed in 
     exceptional circumstances, a record of the disclosure in 
     accordance with regulations issued by the Secretary.

 Subpart B--Review of Protected Health Information By Subjects of the 
                              Information

     SEC. 4141. INSPECTION OF PROTECTED HEALTH INFORMATION.

       (a) In General.--Except as provided in subsection (b), a 
     health care provider or health plan shall permit an 
     individual who is 
      [[Page S119]] the subject of protected health information or 
     the individual's designee to inspect any such information 
     that the provider or plan maintains. A health care provider 
     or health plan may require an individual to reimburse the 
     provider or plan for the cost of such inspection.
       (b) Exceptions.--A health care provider or health plan is 
     not required by this section to permit inspection or copying 
     of protected health information if any of the following 
     conditions apply:
       (1) Mental health treatment notes.--The information 
     consists of psychiatric, psychological, or mental health 
     treatment notes, and the provider or plan determines, based 
     on reasonable medical judgment, that inspection or copying of 
     the notes would cause sufficient harm.
       (2) Endangerment to life or safety.--The provider or plan 
     determines that disclosure of the information could 
     reasonably be expected to endanger the life or physical 
     safety of any individual.
       (3) Confidential source.--The information identifies or 
     could reasonably lead to the identification of a person 
     (other than a health care provider) who provided information 
     under a promise of confidentiality to a health care provider 
     concerning the individual who is the subject of the 
     information.
       (4) Administrative purposes.--The information is used by 
     the provider or plan solely for administrative purposes and 
     not in the provision of health care to the individual who is 
     the subject of the information.

     SEC. 4142. AMENDMENT OF PROTECTED HEALTH INFORMATION.

       A health care provider or health plan shall, within 45 days 
     after receiving a written request to correct or amend 
     protected health information from the individual who is the 
     subject of the information--
       (1) correct or amend such information; or
       (2) provide the individual with a statement of the reasons 
     for refusing to correct or amend such information and include 
     a copy of such statement in the provider's or plan's records.

     SEC. 4143. NOTICE OF INFORMATION PRACTICES.

       A health care provider or health plan shall provide written 
     notice of the provider's or plan's information practices, 
     including notice of individual rights with respect to 
     protected health information.

                           PART 4--SANCTIONS

                       Subpart A--Civil Sanctions

     SEC. 4151. CIVIL PENALTY.

       (a) Violation.--Any health information trustee who the 
     Secretary determines has substantially failed to comply with 
     this subtitle shall be subject, in addition to any other 
     penalties that may be prescribed by law, to a civil penalty 
     of not more than $10,000 for each such violation.
       (b) Procedures for Imposition of Penalties.--Section 1128A 
     of the Social Security Act (42 U.S.C. 1320a-7a), other than 
     subsections (a) and (b) and the second sentence of subsection 
     (f) of that section, shall apply to the imposition of a civil 
     monetary penalty under this section in the same manner as 
     such provisions apply with respect to the imposition of a 
     penalty under such section 1128A.

     SEC. 4152. CIVIL ACTION.

       (a) In General.--An individual who is aggrieved by 
     negligent conduct in violation of this subtitle may bring a 
     civil action to recover--
       (1) the greater of actual damages or liquidated damages of 
     $5,000;
       (2) punitive damages;
       (3) a reasonable attorney's fee and expenses of litigation;
       (4) costs of litigation; and
       (5) such preliminary and equitable relief as the court 
     determines to be appropriate.
       (b) Limitation.--No action may be commenced under this 
     section more than 3 years after the date on which the 
     violation was or should reasonably have been discovered.

                     Subpart B--Criminal Sanctions

     SEC. 4161. WRONGFUL DISCLOSURE OF PROTECTED HEALTH 
                   INFORMATION.

       (a) Offense.--A person who knowingly--
       (1) obtains protected health information relating to an 
     individual in violation of this subtitle; or
       (2) discloses protected health information to another 
     person in violation of this subtitle,
     shall be punished as provided in subsection (b).
       (b) Penalties.--A person described in subsection (a) 
     shall--
       (1) be fined not more than $50,000, imprisoned not more 
     than 1 year, or both;
       (2) if the offense is committed under false pretenses, be 
     fined not more than $100,000, imprisoned not more than 5 
     years, or both; and
       (3) if the offense is committed with intent to sell, 
     transfer, or use protected health information for commercial 
     advantage, personal gain, or malicious harm, fined not more 
     than $250,000, imprisoned not more than 10 years, or both.

                   PART 5--ADMINISTRATIVE PROVISIONS

     SEC. 4166. RELATIONSHIP TO OTHER LAWS.

       (a) State Law.--Except as provided in subsections (b), (c), 
     and (d), this subtitle preempts State law.
       (b) Laws Relating to Public or Mental Health.--Nothing in 
     this subtitle shall be construed to preempt or operate to the 
     exclusion of any State law relating to public health or 
     mental health that prevents or regulates disclosure of 
     protected health information otherwise allowed under this 
     subtitle.
       (c) Privileges.--Nothing in this subtitle is intended to 
     preempt or modify State common or statutory law to the extent 
     such law concerns a privilege of a witness or person in a 
     court of the State. This subtitle does not supersede or 
     modify Federal common or statutory law to the extent such law 
     concerns a privilege of a witness or person in a court of the 
     United States. Authorizations pursuant to section 4107 shall 
     not be construed as a waiver of any such privilege.
       (d) Certain Duties Under State or Federal Law.--This 
     subtitle shall not be construed to preempt, supersede, or 
     modify the operation of--
       (1) any law that provides for the reporting of vital 
     statistics such as birth or death information;
       (2) any law requiring the reporting of abuse or neglect 
     information about any individual;
       (3) subpart II of part E of title XXVI of the Public Health 
     Service Act (42 U.S.C. 300ff-81 et seq.) (relating to 
     notifications of emergency response employees of possible 
     exposure to infectious diseases); or
       (4) any Federal law or regulation governing confidentiality 
     of alcohol and drug patient records.

     SEC. 4167. RIGHTS OF INCOMPETENTS.

       Except as provided in section 4168, if an individual has 
     been declared to be incompetent by a court of competent 
     jurisdiction, the rights of the individual under this 
     subtitle shall be exercised and discharged in the best 
     interests of the individual through the individual's 
     representative.

     SEC. 4168. EXERCISE OF RIGHTS.

       (a) Individuals Who Are 18 or Legally Capable.--In the case 
     of an individual--
       (1) who is 18 years of age or older, all rights of the 
     individual shall be exercised by the individual; or
       (2) who, acting alone, has the legal right, as determined 
     by State law, to apply for and obtain a type of medical 
     examination, care, or treatment and who has sought such 
     examination, care, or treatment, the individual shall 
     exercise all rights of an individual under this subtitle with 
     respect to protected health information relating to such 
     examination, care, or treatment.
       (b) Individuals Under 18.--Except as provided in subsection 
     (a)(2), in the case of an individual who is--
       (1) under 14 years of age, all the individual's rights 
     under this subtitle shall be exercised through the parent or 
     legal guardian of the individual; or
       (2) 14, 15, 16, or 17 years of age, the rights of 
     inspection and amendment, and the right to authorize 
     disclosure of protected health information of the individual 
     may be exercised either by the individual or by the parent or 
     legal guardian of the individual.
          Subtitle C--Enhanced Penalties for Health Care Fraud

     SEC. 4201. ALL-PAYER FRAUD AND ABUSE CONTROL PROGRAM.

       (a) Establishment of Program.--
       (1) In general.--Not later than January 1, 1996, the 
     Secretary of Health and Human Services (in this subtitle 
     referred to as the ``Secretary''), acting through the Office 
     of the Inspector General of the Department of Health and 
     Human Services, and the Attorney General shall establish a 
     program--
       (A) to coordinate Federal, State, and local law enforcement 
     programs to control fraud and abuse with respect to the 
     delivery of and payment for health care in the United States,
       (B) to conduct investigations, audits, evaluations, and 
     inspections relating to the delivery of and payment for 
     health care in the United States,
       (C) to facilitate the enforcement of the provisions of 
     sections 1128, 1128A, and 1128B of the Social Security Act 
     (42 U.S.C. 1320a-7, 1320a-7a, and 1320a-7b) and other 
     statutes applicable to health care fraud and abuse, and
       (D) to provide for the modification and establishment of 
     safe harbors and to issue interpretative rulings and special 
     fraud alerts.
       (2) Regulations.--The Secretary and the Attorney General 
     shall by regulation establish standards to carry out the 
     program under paragraph (1).
       (b) Health Care Fraud and Abuse Control Account.--
       (1) Establishment.--
       (A) In general.--There is hereby established an account to 
     be known as the ``Health Care Fraud and Abuse Control 
     Account'' (in this section referred to as the ``Anti-Fraud 
     Account'').
       (B) Transfer of amounts.--The Secretary of the Treasury 
     shall transfer to the Anti-Fraud Account an amount equal to 
     the sum of the following:
       (i) Criminal fines imposed in cases involving a Federal 
     health care offense (as defined in subparagraph (C)).
       (ii) Administrative penalties and assessments imposed under 
     titles XI, XVIII, and XIX of the Social Security Act (except 
     as otherwise provided by law).
       (iii) Amounts resulting from the forfeiture of property by 
     reason of a Federal health care offense.
       (iv) Penalties and damages imposed under the False Claims 
     Act (31 U.S.C. 3729 et seq.) (except as otherwise provided by 
     law), in cases involving claims related to the provision of 
     health care items and services (other than funds awarded to a 
     relator or for restitution).
       (C) For purposes of this paragraph, the term ``Federal 
     health care offense'' means a violation of, or a criminal 
     conspiracy to violate--
     [[Page S120]]   (i) section 1347 of title 18, United States 
     Code;
       (ii) section 1128B of the Social Security Act (42 U.S.C. 
     1320a-7b);
       (iii) sections 287, 371, 664, 666, 1001, 1027, 1341, 1343, 
     or 1954 of title 18, United States Code, if the violation or 
     conspiracy relates to health care fraud; and
       (iv) section 501 or 511 of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1131 and 1141), if the 
     violation or conspiracy relates to health care fraud.
       (2) Use of funds.--
       (A) In general.--Amounts in the Anti-Fraud Account shall be 
     available without appropriation and until expended as 
     determined jointly by the Secretary and the Attorney General 
     of the United States in carrying out the health care fraud 
     and abuse control program established under subsection (a) 
     (including the administration of the program), and may be 
     used to cover costs incurred in operating the program, 
     including costs (including equipment, salaries and benefits, 
     and travel and training) of--
       (i) prosecuting health care matters (through criminal, 
     civil, and administrative proceedings);
       (ii) investigations;
       (iii) financial and performance audits of health care 
     programs and operations;
       (iv) inspections and other evaluations; and
       (v) provider and consumer education regarding compliance 
     with the provisions of this subtitle.
       (4) Use of funds by inspector general.--The Inspector 
     General is authorized to receive and retain for current use 
     reimbursement for the costs of conducting investigations, 
     when such restitution is ordered by a court, voluntarily 
     agreed to by the payer, or otherwise.

     SEC. 4202. APPLICATION OF FEDERAL HEALTH ANTI-FRAUD AND ABUSE 
                   SANCTIONS TO ALL FRAUD AND ABUSE AGAINST ANY 
                   HEALTH PLAN.

       (a) Application of Civil Monetary Penalties.--Section 1128A 
     of the Social Security Act (42 U.S.C. 1320a-7a) is amended as 
     follows:
       (1) In subsection (a)(1), by inserting ``or of any health 
     plan (as defined in section 1128(i)),'' after ``subsection 
     (i)(1)),''.
       (2) In subsection (b)(1)(A), by inserting ``or under a 
     health plan'' after ``title XIX''.
       (3) In subsection (i)--
       (A) in paragraph (2), by inserting ``or under a health 
     plan'' before the period at the end, and
       (B) in paragraph (5), by inserting ``or under a health 
     plan'' after ``or XX''.
       (b) Permitting Secretary To Impose Civil Monetary 
     Penalty.--Section 1128A(b) of the Social Security Act (42 
     U.S.C. 1320a-7a(a)) is amended by adding the following new 
     paragraph:
       ``(3) Any person (including any organization, agency, or 
     other entity, but excluding a beneficiary as defined in 
     subsection (i)(5)) who the Secretary determines has violated 
     section 1128B(b) of this title shall be subject to a civil 
     monetary penalty of not more than $10,000 for each such 
     violation. In addition, such person shall be subject to an 
     assessment of not more than twice the total amount of the 
     remuneration offered, paid, solicited, or received in 
     violation of section 1128B(b). The total amount of 
     remuneration subject to an assessment shall be calculated 
     without regard to whether some portion thereof also may have 
     been intended to serve a purpose other than one proscribed by 
     section 1128B(b).''.
       (c) Health Plan Defined.--Section 1128 of the Social 
     Security Act (42 U.S.C. 1320a-7) is amended by redesignating 
     subsection (i) as subsection (j) and by inserting after 
     subsection (h) the following new subsection:
       ``(i) Health Plan Defined.--For purposes of sections 1128A 
     and 1128B, the term `health plan' has the meaning given such 
     term in section 1031(a) of the Family Health Insurance 
     Protection Act.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1996.

     SEC. 4203. ESTABLISHMENT OF THE HEALTH CARE FRAUD AND ABUSE 
                   DATA COLLECTION PROGRAM.

       (a) General Purpose.--Not later than January 1, 1996, the 
     Secretary shall establish a national health care fraud and 
     abuse data collection program for the reporting of final 
     adverse actions (not including settlements in which no 
     findings of liability have been made) against health care 
     providers, suppliers, or practitioners as required by 
     regulations issued by the Secretary.
       (b) Conforming Amendment.--Section 1921(d) of the Social 
     Security Act (42 U.S.C. 1396r-2(d)) is amended by inserting 
     ``and section 4203 of the Family Health Insurance Protection 
     Act'' after ``section 422 of the Health Care Quality 
     Improvement Act of 1986''.

     SEC. 4204. HEALTH CARE FRAUD.

       (a)  Fines and Imprisonment for Health Care Fraud 
     violations.--Chapter 63 of title 18, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 1347. Health care fraud

       ``(a) Whoever knowingly executes, or attempts to execute, a 
     scheme or artifice--
       ``(1) to defraud any health plan or other person, in 
     connection with the delivery of or payment for health care 
     benefits, items, or services; or
       ``(2) to obtain, by means of false or fraudulent pretenses, 
     representations, or promises, any of the money or property 
     owned by, or under the custody or control of, any health 
     plan, or person in connection with the delivery of or payment 
     for health care benefits, items, or services;
     shall be fined under this title or imprisoned not more than 
     10 years, or both. If the violation results in serious bodily 
     injury (as defined in section 1365(g)(3) of this title), such 
     person shall be imprisoned for any term of years.
       ``(b) For purposes of this section, the term `health plan' 
     has the meaning given such term in section 1128(i) of the 
     Social Security Act (42 U.S.C. 1320a-7(i)).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 63 of title 18, United States Code, is 
     amended by adding at the end the following:

``1347. Health care fraud.''.
               Subtitle D--Health Care Malpractice Reform

     SEC. 4301. FEDERAL TORT REFORM.

       (a) Applicability.--
       (1) In general.--Except as provided in section 4302, this 
     subtitle shall apply with respect to any medical malpractice 
     liability action brought in any State or Federal court, 
     except that this subtitle shall not apply to a claim or 
     action for damages arising from a vaccine-related injury or 
     death to the extent that title XXI of the Public Health 
     Service Act (42 U.S.C. 300aa-1 et seq.) applies to the claim 
     or action.
       (2) Effect on sovereign immunity and choice of law or 
     venue.--Nothing in this subtitle shall be construed to--
       (A) waive or affect any defense of sovereign immunity 
     asserted by any State under any provision of law;
       (B) waive or affect any defense of sovereign immunity 
     asserted by the United States;
       (C) affect the applicability of any provision of the 
     Foreign Sovereign Immunities Act of 1976;
       (D) preempt State choice-of-law rules with respect to 
     claims brought by a foreign nation or a citizen of a foreign 
     nation; or
       (E) affect the right of any court to transfer venue or to 
     apply the law of a foreign nation or to dismiss a claim of a 
     foreign nation or of a citizen of a foreign nation on the 
     ground of inconvenient forum.
       (3) Federal court jurisdiction not established on federal 
     question grounds.--Nothing in this subtitle shall be 
     construed to establish any jurisdiction in the district 
     courts of the United States over medical malpractice 
     liability actions on the basis of section 1331 or 1337 of 
     title 28, United States Code.
       (b) Definitions.--For purposes of this subtitle:
       (1) Alternative dispute resolution system; ADR.--The term 
     ``alternative dispute resolution system'' or ``ADR'' means a 
     system that provides for the resolution of medical 
     malpractice claims in a manner other than through medical 
     malpractice liability actions.
       (2) Claimant.--The term ``claimant'' means any person who 
     alleges a medical malpractice claim, and any person on whose 
     behalf such a claim is alleged, including the decedent in the 
     case of an action brought through or on behalf of an estate.
       (3) Health care professional.--The term ``health care 
     professional'' means any individual who provides health care 
     services in a State and who is required by the laws or 
     regulations of the State to be licensed or certified by the 
     State to provide such services in the State.
       (4) Health care provider.--The term ``health care 
     provider'' means any organization or institution that is 
     engaged in the delivery of health care services in a State 
     and that is required by the laws or regulations of the State 
     to be licensed or certified by the State to engage in the 
     delivery of such services in the State.
       (5) Health plan.--The term ``health plan'' has the meaning 
     given such term in section 1031(a).
       (6) Injury.--The term ``injury'' means any illness, 
     disease, or other harm that is the subject of a medical 
     malpractice liability action or a medical malpractice claim.
       (7) Medical malpractice liability action.--The term 
     ``medical malpractice liability action'' means a cause of 
     action brought in a State or Federal court against a health 
     care provider or health care professional by which the 
     plaintiff brings a medical malpractice claim.
       (8) Medical malpractice claim.--The term ``medical 
     malpractice claim'' means a claim brought against a health 
     care provider or health care professional in which a claimant 
     alleges that injury was caused by the provision of (or the 
     failure to provide) health care services, except that such 
     term does not include--
       (A) any claim based on an allegation of an intentional 
     tort;
       (B) any claim based on an allegation that a product is 
     defective that is brought against any individual or entity 
     that is not a health care professional or health care 
     provider; or
       (C) any claim brought pursuant to a health plan benefit 
     determination review procedure.
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.

     SEC. 4302. STATE-BASED ALTERNATIVE DISPUTE RESOLUTION 
                   MECHANISMS.

       (a) Application to Malpractice Claims Under Plans.--Prior 
     to or immediately following the commencement of any medical 
     malpractice action, the parties shall participate in the 
     alternative dispute resolution system administered by the 
     State under subsection (b). Such participation shall be in 
      [[Page S121]] lieu of any other provision of Federal or 
     State law or any contractual agreement made by or on behalf 
     of the parties prior to the commencement of the medical 
     malpractice action.
       (b) Adoption of Mechanism by State.--Each State shall--
       (1) maintain or adopt at least 1 of the alternative dispute 
     resolution methods satisfying the requirements specified 
     under subsection (c) and (d) for the resolution of medical 
     malpractice claims; and
       (2) clearly disclose to enrollees (and potential enrollees) 
     of health plans the availability and procedures for consumer 
     grievances, including a description of the alternative 
     dispute resolution method or methods adopted under this 
     subsection.
       (c) Specification of Permissible Alternative Dispute 
     Resolution Methods.--
       (1) In general.--The Secretary shall, by regulation, 
     develop alternative dispute resolution methods for the use by 
     States in resolving medical malpractice claims under 
     subsection (a). Such methods shall include at least the 
     following:
       (A) Arbitration.--The use of arbitration, a nonjury 
     adversarial dispute resolution process which may, subject to 
     subsection (d), result in a final decision as to facts, law, 
     liability, or damages.
       (B) Claimant-requested binding arbitration.--For claims 
     involving a sum of money that falls below a threshold amount 
     set by the Secretary, the use of arbitration not subject to 
     subsection (d). Such binding arbitration shall be at the sole 
     discretion of the claimant.
       (C) Mediation.--The use of mediation, a settlement process 
     coordinated by a neutral third party without the ultimate 
     rendering of a formal opinion as to factual or legal 
     findings.
       (D) Early neutral evaluation.--The use of early neutral 
     evaluation, in which the parties make a presentation to a 
     neutral attorney or other neutral evaluator for an assessment 
     of the merits, to encourage settlement. If the parties do not 
     settle as a result of assessment and proceed to trial, the 
     neutral evaluator's opinion shall be kept confidential.
       (2) Standards for establishing methods.--In developing 
     alternative dispute resolution methods under paragraph (1), 
     the Secretary shall assure that the methods promote the 
     resolution of medical malpractice claims in a manner that is 
     affordable, timely, consistent and fair, and reasonably 
     convenient.
       (3) Waiver authority.--Upon application of a State, the 
     Secretary may grant the State the authority to fulfill the 
     requirement of subsection (b) by adopting a mechanism other 
     than a mechanism established by the Secretary pursuant to 
     this subsection, except that such mechanism must meet the 
     standards set forth in paragraph (2).
       (d) Further Redress.--Except with respect to the claimant-
     requested binding arbitration method set forth in subsection 
     (c)(1)(B), and notwithstanding any other provision of a law 
     or contractual agreement, a plan enrollee dissatisfied with 
     the determination reached as a result of an alternative 
     dispute resolution method applied under this section may, 
     after the final resolution of the enrollee's claim under the 
     method, initiate or resume a cause of action to seek damages 
     or other redress with respect to the claim to the extent 
     otherwise permitted under State law. The results of any 
     alternative dispute resolution procedure are inadmissible at 
     any subsequent trial, as are all statements, offers, and 
     other communications made during such procedures, unless 
     otherwise admissible under State law.

     SEC. 4303. LIMITATION ON AMOUNT OF ATTORNEY'S CONTINGENCY 
                   FEES.

       (a) In General.--An attorney who represents, on a 
     contingency fee basis, a plaintiff in a medical malpractice 
     liability action may not charge, demand, receive, or collect 
     for services rendered in connection with such action 
     (including the resolution of the claim that is the subject of 
     the action under any alternative dispute resolution system) 
     in excess of--
       (1) 33\1/3\ percent of the first $150,000 of the total 
     amount recovered by judgment or settlement in such action; 
     plus
       (2) 25 percent of any amount recovered above the amount 
     described in paragraph (1);
     unless otherwise determined under State law. Such amount 
     shall be computed after deductions are made for all the 
     expenses associated with the claim other than those 
     attributable to the normal operating expenses of the 
     attorney.
       (b) Calculation of periodic payments.--In the event that a 
     judgment or settlement includes periodic or future payments 
     of damages, the amount recovered for purposes of computing 
     the limitation on the contingency fee under subsection (a) 
     may, in the discretion of the court, be based on the cost of 
     the annuity or trust established to make the payments. In any 
     case in which an annuity or trust is not established to make 
     such payments, such amount shall be based on the present 
     value of the payments.
       (c) Contingency Fee Defined.--For purposes of this section, 
     the term ``contingency fee'' means any fee for professional 
     legal services which is, in whole or in part, contingent upon 
     the recovery of any amount of damages, whether through 
     judgment or settlement.

     SEC. 4304. PERIODIC PAYMENT OF AWARDS.

       (a) In General.--A party to a medical malpractice liability 
     action may petition the court to instruct the trier of fact 
     to award any future damages on an appropriate periodic basis. 
     If the court, in its discretion, so instructs the trier of 
     fact, and damages are awarded on a periodic basis, the court 
     may require the defendant to purchase an annuity or other 
     security instrument (typically based on future damages 
     discounted to present value) adequate to assure payments of 
     future damages.
       (b) Failure or Inability To Pay.--With respect to an award 
     of damages described in subsection (a), if a defendant fails 
     to make payments in a timely fashion, or if the defendant 
     becomes or is at risk of becoming insolvent, upon such a 
     showing the claimant may petition the court for an order 
     requiring that remaining balance be discounted to present 
     value and paid to the claimant in a lump-sum.
       (c) Modification of Payment Schedule.--The court shall 
     retain authority to modify the payment schedule based on 
     changed circumstances.
       (d) Future Damages Defined.--For purposes of this section, 
     the term ``future damages'' means any economic or noneconomic 
     loss other than that incurred or accrued as of the time of 
     judgment.

     SEC. 4305. ALLOCATION OF PUNITIVE DAMAGE AWARDS FOR PROVIDER 
                   LICENSING AND DISCIPLINARY ACTIVITIES.

       (a) In General.--With respect to the total amount of any 
     punitive damages awarded in a medical malpractice liability 
     action, 50 percent of such amount shall be paid to the State 
     in which the action is brought (or, in a case brought in 
     Federal court, in the State in which the health care services 
     that caused the injury that is the subject of the action were 
     provided) for the purposes of carrying out the activities 
     described in subsection (b).
       (b) Activities Described.--A State shall use amounts paid 
     pursuant to subsection (a) to carry out activities to ensure 
     the safety and quality of health care services provided in 
     the State, including--
       (1) licensing or certifying health care professionals and 
     health care providers in the State;
       (2) implementing health care quality assurance and quality 
     improvement programs;
       (3) carrying out programs to reduce malpractice-related 
     costs for providers volunteering to provide services in 
     medically underserved areas; and
       (4) providing resources for additional investigation and 
     disciplinary activities by the State licensing board.
       (c) Maintenance of Effort.--A State shall use any amounts 
     paid pursuant to subsection (a) to supplement and not to 
     replace amounts spent by the State for the activities 
     described in subsection (b).
                       TITLE V--BUDGET NEUTRALITY

     SEC. 5001. ASSURANCE OF BUDGET NEUTRALITY.

       Notwithstanding any other provision of this Act, no 
     provision of, or amendment made by, this Act shall take 
     effect until legislation is enacted which by its terms 
     specifically provides for the Federal budget neutrality of 
     this Act.

  Mr. ROCKEFELLER. Mr. President, I am pleased to join the new Senate 
minority leader, Tom Daschle, along with Senator Kennedy, Reid, 
Mikulski, and Dodd in sponsoring a health care bill that would begin to 
give millions of Americans improved health security.
  While it should not come as a surprise to any of my colleagues that 
my preference would be to give all Americans guaranteed health care 
security, this bill includes important steps that will provide health 
security to some Americans through insurance reforms and, importantly, 
prioritizes health coverage for children and temporary assistance for 
workers in between jobs. S. 7 includes the essential building blocks 
for building a secure health care system.
  Moving ahead on health care reform was identified by Senate 
Republicans as one of their top seven legislative priorities for the 
104th Congress prior to last November's election. Each and every major 
provision in S. 7 was included in every serious health care reform 
proposal introduced by both Democrats and Republicans over the past 2 
years. I believe this bill reflects the consensus that emerged last 
year on where and how to get started on reforming our health care 
system.
  This past November voters did not tell Congress to put health care 
reform on the back burner. An election night survey found that health 
reform was identified by voters as a top priority issue for this 
Congress. According to the Kaiser/Harvard survey, ``health care was 
number one for voters in deciding who to vote for in the Congressional 
election, ahead of crime, and taxes.'' Fifty-six percent of voters said 
that Congress should take the lead in developing a health care reform 
plan. Only 20 percent of Americans said Congress should not try to see 
that more people have health insurance. Seventy-four percent said that 
Congress should either guarantee coverage for all 
 [[Page S122]] Americans or at least make a start by covering some 
groups who do not have health insurance. A majority of voters favored 
beginning with children first.
  Mr. President, special interests and election year politics managed 
to greatly distort last year's debate on health care reform. As a 
result, many Americans are nervous about extremely ambitious reforms. 
But voters remain overwhelming in favor of moving ahead on health care. 
Only 25 percent of voters said Congress should leave our health care 
system alone.
  If my colleagues on both sides of the aisle are truly interested in 
making a difference in the lives of middle-class Americans, if they are 
really interested in restoring peace of mind of millions of hard-
working Americans, health reform is the way to do that.
  Millions of middle-class working families would benefit from the 
insurance portability provisions in this bill that would allow them to 
change health insurance plans when they change jobs without having to 
qualify for a new pre-existing condition exclusion. For people with 
lapses in their insurance coverage, they would only to be a subject to 
a one-time 6 month pre-existing condition exclusion period as long as 
they had continuous health coverage. For workers in between jobs, 
unable to afford health coverage, temporary health coverage would be 
available up to a maximum of 6 months. This would give millions of 
working families some piece of mind that they will not be forced to 
delay getting necessary medical care or being financially wiped out by 
even a minor injury or illness as they search for a new job.
  This bill would ban insurance companies from canceling policies or 
hiking premiums when someone gets sick or injured and incurs large 
medical bills. Under current insurance practices, young and healthy 
people often get deep premium discounts. Discounts that quickly 
disappear over time or when they or a family member gets sick. There 
are also large differences in premium rates based on a person's age, 
sex, occupation, even based on a person's zip code. This bill would 
begin to set limits on how much premiums can differ based on these 
factors.
  To minimize large swings in premiums during implementation of 
insurance rating reforms, this bill carefully and slowly phases-in its 
reforms. The prohibition on medical underwriting--which means charging 
people different premiums solely based on their health status--is 
phased-in over 3 years. At the same time, age bands are phased-in that 
would significantly narrow what insurance companies could charge people 
solely based on their age.
  All but a few states have already moved ahead on small group 
insurance reforms but national uniformity is important so that 
insurance is portable for consumers across state lines and also to ease 
compliance by insurance companies that do business in more than one 
State. Forty percent of States have even adopted some version of 
community rating or modified community rating laws. While there has 
been some serious concerns raised about some erosion of insurance 
coverage that occurred when the state of New York implemented community 
rating, it is very important to note that New York implemented its 
community rating law without any sort of phase-in period.
  Mr. President, I would like to emphasize to my colleagues that while 
coverage in the small group market in New York was estimated to have 
declined by 1.2 percent when community rating was implemented, the 
exact same percentage of people--1.2 percent--lost their health 
coverage the year prior to implementation of New York's rating reforms. 
Other states, such as Maine, New Jersey, and Vermont are experiencing 
net increases in coverage and other positive benefits from private 
insurance reform, such as a greater choice of products for small 
businesses to choose from.
  Last year, a study commissioned by the Catholic Health Association, 
estimated that about 1.1 million people could gain coverage through 
insurance reforms. This mostly includes people who currently are locked 
out of the insurance market because of their medical history.
  The reforms outlined in S. 7 would also provide predictability and 
stability to health premiums by limiting premium variability based on 
age, sex, health status, claims experience, occupation, and zip code. 
Cancer, a heart condition, or diabetes will no longer price working 
American families out of the insurance market.
  Mr. President, I am especially pleased that this legislation 
emphasizes and prioritizes children. Looking out for America's children 
is nothing new. This imperative has been recognized time and time 
again. A bipartisan majority of Pepper Commission members said 5 years 
ago that the first step to comprehensive reform should be to cover 
children and pregnant women. I also had the profound privilege of 
chairing the National Commission on Children that made a similar 
recommendation. I introduced a bill with Senator Hatch, 4 years ago, to 
suggest this very idea.
  It is incredibly important that children get early and regular health 
care. There is nothing more heartbreaking and more wrong about our 
country's health care system than putting parents in the position of 
trying to figure out whether or not they can afford to take a sick 
child to see a doctor.
  Mr. President, of the 204,000 West Virginians that do not have health 
insurance one third are children. About 64,000 West Virginia children--
about 94 percent of the uninsured children in my home state--would 
qualify for health insurance under this legislation.
  Mr. President, I would also like to take a second to remind my 
colleagues that job-based coverage for children has diminished 
significantly over the past decade and a half. Two thirds of children 
without insurance have at least one parent who works full-time while 
another 13 percent have a parent who works part-time. Having a job is 
just not an assurance of reliable health insurance coverage.
  The overall percentage of children with job-based insurance has 
dropped from 64 percent in 1987 to 59 percent in 1992--a decrease of 5 
percent in just 6 years. Had coverage stayed at 1987 rates--more than 3 
million children would have job-based coverage today. If current trends 
continue, only about half of our children will be covered by employer-
sponsored coverage by 2000. If not for legislation enacted in the 
1980's that expanded Medicaid coverage for poor children the number of 
uninsured children would be much, much higher today.
  Mr. President, just 15 years ago, 40 percent of employers paid for 
dependent coverage in full. Five years ago, only about one-third of 
employers did. A decline in employer contributions means that many 
hardworking families just end up doing without because they can't 
afford the extra dollars themselves. This bill will help those families 
get health coverage for their children.
  Not having health insurance reduces the number of times a child goes 
to the doctor. And not surprisingly, the frequency of doctor visits is 
directly correlated with a family's income. It is the low-wage working 
family making between $10,000 and $20,000 a year, barely able to make 
ends meet, whose children go to see a doctor least often. These are 
families who are not poor enough to qualify for Medicaid but can't 
afford private health insurance. Even routine pediatric care can 
consume 10 percent of a low wage working family's annual income.
  Last year, the Finance Committee, on a bipartisan vote of 12-8, 
approved an amendment that would have accelerated and expanded coverage 
for children. Frankly, reforming our welfare system won't work unless 
we can make sure families won't be forced to quit their jobs in order 
to qualify for health benefits through the Medicaid program.
  I am pleased that my colleague from rural South Dakota also included 
important rural health provisions in this legislation. Most of the 
provisions included in the rural health section are identical to 
measures included in a rural health amendment I authored along with 
Senator Daschle last August. Our rural health amendment was nearly 
unanimously agreed to when offered to pending health care reform 
legislation on the Senate floor. Again, reflecting an overwhelming 
consensus in this area.
  I am also extremely pleased that this legislation will provide long 
awaited tax equity for self-employed individuals. Prior to January 1, 
1994, the self-employed were allowed to deduct 25 
 [[Page S123]] percent of the costs of insuring themselves and their 
families. Since expiration of this law last year, the self-employed are 
prohibited from deducting any of their insurance premiums. This bill 
would allow the self-employed to deduct 100 percent of their health 
insurance costs. Currently, incorporated businesses can deduct the 
entire cost of their health insurance policies. This was also a 
priority identified 5 years ago by the Pepper Commission and a measure 
that has always enjoyed broad bipartisan support.
  Mr. President, this legislation includes other important measures 
that have enjoyed popular and broad, bipartisan support, such as 
administrative simplification, patient confidentiality, malpractice 
reforms, and demonstration funding for the development of purchasing 
groups and telemedicine grants. I also share the commitment earlier 
stated by Minority Leader Daschle that this legislation if enacted 
would not contribute to the Federal deficit. As a member of the Finance 
Committee, I am committed to working on building a consensus for 
financing the coverage expansions for children, the temporarily 
unemployed, and tax equity for the self-employed outlined in this 
legislation.
  I sincerely hope that the 104th Congress will truly be historic and 
be remembered for enacting serious and long overdue health reforms.
                                 ______

      By Mr. DASCHLE (for himself, Mr. Breaux, Ms. Mikulski, Mr. 
        Rockefeller, Mr. Reid, Mr. Kerry, Mrs. Murray, Mr. Dorgan, Ms. 
        Moseley-Braun, and Mr. Robb):
  S. 8. A bill to amend title IV of the Social Security Act to reduce 
teenage pregnancy, to encourage parental responsibility, and for other 
purposes; to the Committee on Finance.

                          ____________________




       TEEN PREGNANCY PREVENTION AND PARENTAL RESPONSIBILITY ACT

  Mr. DASCHLE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
                                  S. 8

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE; REFERENCES IN ACT; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Teen 
     Pregnancy Prevention and Parental Responsibility Act''.
       (b) Amendments to the Social Security Act.--Except as 
     otherwise specifically provided, whenever in this Act an 
     amendment is expressed in terms of an amendment to or repeal 
     of a section or other provision, the reference shall be 
     considered to be made to that section or other provision of 
     the Social Security Act.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; references in Act; table of contents.

       TITLE I--ENDING THE CYCLE OF INTERGENERATIONAL DEPENDENCY

Sec. 101. Supervised living arrangements for minors.
Sec. 102. Reinforcing families.
Sec. 103. Required completion of high school or other training for 
              teenage parents.
Sec. 104. Drug treatment and counseling as part of the JOBS program.

                   TITLE II--PARENTAL RESPONSIBILITY

Sec. 201. Performance-based incentives.
Sec. 202. State law authorizing suspension of licenses.
Sec. 203. State laws concerning paternity establishment.
Sec. 204. State laws providing expedited procedures.
Sec. 205. Outreach for voluntary paternity establishment.

                 TITLE III--COMBATING TEENAGE PREGNANCY

Sec. 301. Targeting youth at risk of teenage pregnancy.
Sec. 302. National Clearinghouse on Teenage Pregnancy.

                          TITLE IV--FINANCING

Sec. 401. Uniform alien eligibility criteria for public assistance 
              programs.
Sec. 402. State retention of amounts recovered.
       TITLE I--ENDING THE CYCLE OF INTERGENERATIONAL DEPENDENCY

     SEC. 101. SUPERVISED LIVING ARRANGEMENTS FOR MINORS.

       (a) State Plan Requirement.--Section 402(a)(43) (42 U.S.C. 
     602(a)(43)) is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``at the option of the State,'';
       (2) in the matter preceding clause (i) of subparagraph (A), 
     by striking ``subject to subparagraph (B)'' and inserting 
     ``except as provided in subparagraph (B)(i)''; and
       (3) in subparagraph (A)(i), by striking ``, or reside in a 
     foster home, maternity home, or other adult-supervised 
     supportive living arrangement''.
       (b) Appropriate Adult-Supervised Supportive Living 
     Arrangements.--Section 402(a)(43)(B) (42 U.S.C. 
     602(a)(43)(B)) is amended to read as follows:
       ``(B)(i) in the case of an individual described in clause 
     (ii)--
       ``(I) the State agency shall assist such individual in 
     locating an appropriate adult-supervised supportive living 
     arrangement taking into consideration the needs and concerns 
     of the individual, unless the State agency determines that 
     the individual's current living arrangement is appropriate, 
     and thereafter shall require that the individual (and child, 
     if any) reside in such living arrangement as a condition of 
     the continued receipt of aid under the plan (or in an 
     alternative appropriate arrangement, should circumstances 
     change and the current arrangement cease to be appropriate), 
     or
       ``(II) if the State agency is unable, after making diligent 
     efforts, to locate any such appropriate living arrangement, 
     it shall provide for comprehensive case management, 
     monitoring, and other social services consistent with the 
     best interests of the individual (and child) while living 
     independently; and
       ``(ii) for purposes of clause (i), an individual is 
     described in this clause if--
       ``(I) such individual has no parent or legal guardian of 
     his or her own who is living and whose whereabouts are known;
       ``(II) no living parent or legal guardian of such 
     individual allows the individual to live in the home of such 
     parent or guardian;
       ``(III) the State agency determines that the physical or 
     emotional health of such individual or any dependent child of 
     the individual would be jeopardized if such individual and 
     such dependent child lived in the same residence with such 
     individual's own parent or legal guardian; or
       ``(IV) the State agency otherwise determines (in accordance 
     with regulations issued by the Secretary) that it is in the 
     best interest of the dependent child to waive the requirement 
     of subparagraph (A) with respect to such individual.''.
       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsections (a) and (b) shall be effective 
     with respect to calendar quarters beginning on or after 
     October 1, 1995.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the additional requirements imposed 
     by the amendments made by this Act, the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendments before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.

     SEC. 102. REINFORCING FAMILIES.

       (a) In General.--Title XX (42 U.S.C. 1397-1397e) is amended 
     by adding at the end the following new section:

     ``SEC. 2008. ADULT-SUPERVISED GROUP HOMES.

       ``(a) Entitlement.--
       ``(1) In general.--In addition to any payment under 
     sections 2002 and 2007, beginning with fiscal year 1996, each 
     State shall be entitled to funds under this section for each 
     fiscal year for the establishment, operation, and support of 
     adult-supervised group homes for custodial parents under the 
     age of 19 and their children.
       ``(2) Payment to states.--
       ``(A) In general.--Each State shall be entitled to payment 
     under this section for each fiscal year in an amount equal to 
     its allotment (determined in accordance with subsection (b)) 
     for such fiscal year, to be used by such State for the 
     purposes set forth in paragraph (1).
       ``(B) Transfers of funds.--The Secretary shall make 
     payments in accordance with section 6503 of title 31, United 
     States Code, to each State from its allotment for use under 
     this title.
       ``(C) Use.--Payments to a State from its allotment for any 
     fiscal year must be expended by the State in such fiscal year 
     or in the succeeding fiscal year.
       ``(D) Technical assistance.--A State may use a portion of 
     the amounts described in subparagraph (A) for the purpose of 
     purchasing technical assistance from public or private 
     entities if the State determines that such assistance is 
     required in developing, implementing, or administering the 
     program funded under this section.
       ``(3) Adult-supervised group home.--For purposes of this 
     section, the term `adult-supervised group home' means an 
     entity that provides custodial parents under the age of 19 
     and their children with a supportive and supervised living 
     arrangement in which such parents would be required to learn 
     parenting skills, including child development, family 
     budgeting, health and nutrition, and other skills to promote 
     their long-term economic independence and the well-being of 
     their children. An adult-supervised group home 
      [[Page S124]] may also serve as a network center for other 
     supportive services that might be available in the community.
       ``(b) Allotment.--
       ``(1) Certain jurisdictions.--The allotment for any fiscal 
     year to each of the jurisdictions of Puerto Rico, Guam, the 
     Virgin Islands, American Samoa, and the Northern Mariana 
     Islands shall be an amount which bears the same ratio to the 
     amount specified under paragraph (3) as the allotment that 
     the jurisdiction receives under section 2003(a) for the 
     fiscal year bears to the total amount specified for such 
     fiscal year under section 2003(c).
       ``(2) Other States.--The allotment for any fiscal year for 
     each State other than the jurisdictions of Puerto Rico, Guam, 
     the Virgin Islands, American Samoa, and the Northern Mariana 
     Islands shall be an amount which bears the same ratio to--
       ``(A) the amount specified under paragraph (3), reduced by
       ``(B) the total amount allotted to those jurisdictions for 
     that fiscal year under paragraph (1),
     as the allotment that the State receives under section 
     2003(b) for the fiscal year bears to the total amount 
     specified for such fiscal year under section 2003(c).
       ``(3) Amount specified.--The amount specified for purposes 
     of paragraphs (1) and (2) shall be $95,000,000 for fiscal 
     year 1996 and each subsequent fiscal year.
       ``(c) Local Involvement.--Each State shall seek local 
     involvement from the community in any area in which an adult-
     supervised group home receiving funds pursuant to this 
     section is to be established. In determining criteria for 
     targeting funds received under this section, each State shall 
     evaluate the community's commitment to the establishment and 
     planning of the home.
       ``(d) Limitations on the Use of Funds.--
       ``(1) Construction.--Except as provided in paragraph (2), 
     funds made available under this section may not be used by 
     the State, or any other person with which the State makes 
     arrangements to carry out the purposes of this section, for 
     the purchase or improvement of land, or the purchase, 
     construction, or permanent improvement (other than minor 
     remodeling) of any building or other facility.
       ``(2) Waiver.--The Secretary may waive the limitation 
     contained in paragraph (1) upon the State's request for such 
     a waiver if the Secretary finds that the request describes 
     extraordinary circumstances to justify the waiver and that 
     permitting the waiver will contribute to the State's ability 
     to carry out the purposes of this section.
       ``(e) Treatment of Indian Tribes.--
       ``(1) In general.--An Indian tribe may apply to the 
     Secretary to establish, operate, and support adult-supervised 
     group homes for custodial parents under the age of 19 and 
     their children in accordance with an application procedure to 
     be determined by the Secretary. Except as otherwise provided 
     in this subsection, the provisions of this section shall 
     apply to Indian tribes receiving funds under this subsection 
     in the same manner and to the same extent as the other 
     provisions of this section apply to States.
       ``(2) Allotment.--If the Secretary approves an Indian 
     tribe's application, the Secretary shall allot to such tribe 
     for a fiscal year an amount which the Secretary determines is 
     the Indian tribe's fair and equitable share of the amount 
     specified under paragraph (3) for all Indian tribes with 
     applications approved under this subsection (based on 
     allotment factors to be determined by the Secretary). The 
     Secretary shall determine a minimum allotment amount for all 
     Indian tribes with applications approved under this 
     subsection. Each Indian tribe with an application approved 
     under this subsection shall be entitled to such minimum 
     allotment.
       ``(3) Amount specified.--The amount specified under this 
     paragraph for all Indian tribes with applications approved 
     under this subsection is $5,000,000 for fiscal year 1996 and 
     each subsequent fiscal year.
       ``(4) Indian tribe defined.--For purposes of this section, 
     the term `Indian tribe' means any Indian tribe, band, nation, 
     pueblo, or other organized group or community, including any 
     Alaska Native entity which is recognized as eligible for the 
     special programs and services provided by the United States 
     to Indian tribes because of their status as Indians.''.
       (b) Receipt of Payments by Adult-Supervised Group Homes.--
       (1) In general.--Section 402(a)(43)(A)(ii) (42 U.S.C. 
     602(a)(43)(A)(ii)) is amended by striking ``or other adult 
     relative'' and inserting ``other adult relative, or adult-
     supervised group home receiving funds under section 2008''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply with respect to calendar quarters beginning on or 
     after October 1, 1995.
       (c) Recommendations on Usage of Government Surplus 
     Property.--Not later than 6 months after the date of the 
     enactment of this Act, after consultation with the Secretary 
     of Defense, the Secretary of Housing and Urban Development, 
     and the Administrator of the General Services Administration, 
     the Secretary of Health and Human Services shall submit 
     recommendations to the Congress on the extent to which 
     surplus properties of the United States Government may be 
     used for the establishment of adult-supervised group homes 
     receiving funds under section 2008 of the Social Security 
     Act.

     SEC. 103. REQUIRED COMPLETION OF HIGH SCHOOL OR OTHER 
                   TRAINING FOR TEENAGE PARENTS.

       (a) In General.--Section 402(a)(19)(E) (42 U.S.C. 
     602(a)(19)(E)) is amended to read as follows:
       ``(E)(i) in the case of a custodial parent who has not 
     attained 19 years of age, has not successfully completed a 
     high-school education (or its equivalent), and is required to 
     participate in the program (including an individual who would 
     otherwise be exempt from participation in the program solely 
     by reason of clauses (iii), (v), or (vii) of subparagraph 
     (C)), the State agency shall--
       ``(I) require such parent to participate in--
       ``(aa) educational activities directed toward the 
     attainment of a high school diploma or its equivalent on a 
     full-time (as defined by the educational provider) basis; or
       ``(bb) an alternative educational or training program (that 
     has been approved by the Secretary) on a full-time (as 
     defined by the provider) basis; and
       ``(II) provide child care in accordance with section 402(g) 
     with respect to the family;
       ``(ii)(I) to the extent that the program is available in 
     the political subdivision involved and State resources 
     otherwise permit, in the case of a custodial parent who is 19 
     years of age, has not successfully completed a high-school 
     education (or its equivalent), and is required to participate 
     in the program (including an individual who would otherwise 
     be exempt from participation in the program solely by reason 
     of subparagraph (C)(iii)), the State agency (subject to 
     subclause (II)) shall require such parent to participate in 
     an educational activity; and
       ``(II) the State agency may--
       ``(aa) require a parent described in subclause (I) 
     (notwithstanding the part-time requirement in subparagraph 
     (C)(iii)(II)) to participate in educational activities 
     directed toward the attainment of a high school diploma or 
     its equivalent on a full-time (as defined by the educational 
     provider) basis; or
       ``(bb) require a parent described in subclause (I) to 
     participate in training or work activities in lieu of the 
     educational activities under such subclause if such parent 
     fails to make good progress in successfully completing such 
     educational activities or if it is determined (prior to any 
     assignment of the individual to such educational activities) 
     pursuant to an educational assessment that participation in 
     such educational activities is inappropriate for such 
     parent;''.
       (b) State Option to Provide Additional Incentives and 
     Penalties to Encourage Teen Parents to Complete High School 
     and Participate in Parenting Activities.--
       (1) State plan.--Section 402(a)(19)(E) (42 U.S.C. 
     602(a)(19)(E)), as amended by subsection (a), is further 
     amended--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' after the semicolon at the end of 
     clause (ii); and
       (C) by adding after clause (ii) the following new clause:
       ``(iii) at the option of the State, some or all custodial 
     parents and pregnant women who have not attained 19 years of 
     age (or at the State's option, 21 years of age) and who are 
     receiving aid under this part shall be required to 
     participate in a program of monetary incentives and 
     penalties, consistent with subsection (j);''.
       (2) Elements of program.--Section 402 (42 U.S.C. 602) is 
     amended by adding at the end the following new subsection:
       ``(j)(1) If a State opts to conduct a program of monetary 
     incentives and penalties to encourage custodial parents and 
     pregnant women who have not attained 19 years of age (or at 
     the State's option, 21 years of age) to complete their high 
     school (or equivalent) education and participate in parenting 
     activities, the State shall amend its State plan--
       ``(A) to specify the one or more political subdivisions (or 
     other clearly defined geographic area or areas) in which the 
     State will conduct the program, and
       ``(B) to describe its program in detail.
       ``(2) A program under this subsection--
       ``(A) may, at the option of the State, require full-time 
     participation by such custodial parents and pregnant women in 
     secondary school or equivalent educational activities, or 
     participation in a course or program leading to a skills 
     certificate found appropriate by the State agency or 
     parenting education activities (or any combination of such 
     activities and secondary education);
       ``(B) shall require that the needs of such custodial 
     parents and pregnant women shall be reviewed and the program 
     will assure that, either in the initial development or 
     revision of such individual's employability plan, there will 
     be included a description of the services that will be 
     provided to the individual and the way in which the program 
     and service providers will coordinate with the educational or 
     skills training activities in which the individual is 
     participating;
       ``(C) shall provide monetary incentives for more than 
     minimally acceptable performance of required educational 
     activities; and
       ``(D) shall provide penalties (which may be those required 
     by subsection (a)(19)(G) or, with the approval of the 
     Secretary, other monetary penalties that the State finds will 
     better achieve the objectives of the program) for less than 
     minimally acceptable performance of required activities.
       ``(3) When a monetary incentive is payable because of the 
     more than minimally acceptable performance of required 
     educational activities by a custodial parent, the incentive 
      [[Page S125]] shall be paid directly to such parent, 
     regardless of whether the State agency makes payment of aid 
     under the State plan directly to such parent.
       ``(4)(A) For purposes of this part, monetary incentives 
     paid under this subsection shall be considered aid to 
     families with dependent children.
       ``(B) For purposes of any other Federal or federally-
     assisted program based on need, no monetary incentive paid 
     under this subsection shall be considered income in 
     determining a family's eligibility for or amount of benefits 
     under such program, and if aid is reduced by reason of a 
     penalty under this subsection, such other program shall treat 
     the family involved as if no such penalty has been applied.
       ``(5) The State agency shall from time to time provide such 
     information with respect to the State operation of the 
     program as the Secretary may request.''.
       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsections (a) and (b) shall be effective 
     with respect to calendar quarters beginning on or after 
     October 1, 1995.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the additional requirements imposed 
     by the amendments made by this Act, the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendments before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.

     SEC. 104. DRUG TREATMENT AND COUNSELING AS PART OF THE JOBS 
                   PROGRAM.

       (a) In General.--Section 402(a)(19) (42 U.S.C. 602(a)(19)) 
     is amended--
       (1) by striking ``and'' at the end of subparagraph (G);
       (2) by inserting ``and'' after the semicolon at the end of 
     subparagraph (H);
       (3) by adding after subparagraph (H), the following new 
     subparagraph:
       ``(I) that, in the case of a custodial parent who has not 
     attained 19 years of age (including an individual who would 
     otherwise be exempt from participation in the program solely 
     by reason of clauses (iii), (v), or (vii)) of subparagraph 
     (C)), whose employability plan (described in section 482(b)) 
     reflects the need for treatment for substance abuse, the 
     State agency shall--
       ``(i) require such individual to participate in substance 
     abuse treatment; and
       ``(ii) notwithstanding any other provision of law, after 
     providing an individual required to participate in treatment 
     under this subparagraph with proper notice, make the 
     provisions of section 402(a)(19)(G) applicable to any 
     individual who fails or refuses to accept such treatment;''.
       (b) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsection (a) shall be effective with 
     respect to calendar quarters beginning on or after October 1, 
     1995.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the additional requirements imposed 
     by the amendments made by this Act, the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendments before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.
                   TITLE II--PARENTAL RESPONSIBILITY

     SEC. 201. PERFORMANCE-BASED INCENTIVES.

       (a) Incentive Adjustments to Federal Matching Rate.--
       (1) In general.--Title IV (42 U.S.C. 601 et seq.) is 
     amended by inserting after section 458 the following new 
     section:


   ``incentive adjustments to matching rate for statewide paternity 
                             establishment

       ``Sec. 458A. (a) Incentive Adjustment.--
       ``(1) In general.--In order to encourage and reward State 
     paternity establishment efforts, the Federal matching rate 
     for payments to a State under section 455(a)(1)(A), for each 
     fiscal year beginning on or after October 1, 1997, shall be 
     increased by a factor reflecting the incentive adjustment (if 
     any) determined in accordance with paragraph (2) with respect 
     to the Statewide paternity establishment percentage.
       ``(2) Standards.--The Secretary shall establish in 
     regulations--
       ``(A) the levels of accomplishment, and rates of 
     improvement as alternatives to such levels, with respect to 
     the Statewide paternity establishment percentages which 
     States must attain to qualify for an incentive adjustment 
     under this section; and
       ``(B) the amounts of incentive adjustment that shall be 
     awarded to States achieving specified accomplishment or 
     improvement levels with respect to Statewide paternity 
     establishment percentages, which amounts shall be graduated, 
     ranging up to 5 percentage points, in connection with the 
     State's Statewide paternity establishment percentage.
       ``(3) Determination of incentive adjustment.--The Secretary 
     shall, pursuant to regulations, determine the amount (if any) 
     of incentive adjustment due each State on the basis of the 
     levels of accomplishment (and rates of improvement) with 
     respect to performance indicators specified by the Secretary 
     pursuant to this section.
       ``(4) Fiscal year subject to incentive adjustment.--The 
     total percentage point increase determined pursuant to this 
     section with respect to a State program in a fiscal year 
     shall apply as an adjustment to the applicable percent under 
     section 455(a)(2) for payments to such State for the 
     succeeding fiscal year.
       ``(b) Statewide Paternity Establishment Percentage.--For 
     purposes of this section, the term `Statewide paternity 
     establishment percentage' means, with respect to a fiscal 
     year, the ratio (expressed as a percentage) of--
       ``(1) the total number of out-of-wedlock children in the 
     State under one year of age for whom paternity is established 
     or acknowledged during the fiscal year, to
       ``(2) the total number of children born out-of-wedlock in 
     the State during such fiscal year.''.
       (2) Title iv-d payment adjustment.--Section 455(a)(2) (42 
     U.S.C. 655(a)(2)) is amended--
       (A) by striking the period at the end of subparagraph (C) 
     and inserting a comma; and
       (B) by adding after subparagraph (C) the following:
     ``increased by the incentive adjustment factor (if any) 
     determined by the Secretary pursuant to section 458A.''.
       (3) Conforming amendments.--Section 454(22) (42 U.S.C. 
     654(22)) is amended--
       (A) by inserting ``or incentive adjustments under section 
     458A'' after ``section 458''; and
       (B) by inserting ``or any increases in Federal payments to 
     the State resulting from such incentive adjustments'' after 
     ``any such incentive payments''.
       (b) Federal Financial Participation for All Paternity 
     Establishment Services.--
       (1) In general.--Section 455(a)(1) (42 U.S.C. 655(a)(1)) is 
     amended by adding at the end the following: ``In determining 
     the total amounts expended by any State during a quarter, for 
     purposes of this subsection, there shall be included any 
     amounts expended for paternity determination services made 
     available to any individual who did not file an application 
     in accordance with section 454(6).''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective with respect to calendar quarters 
     beginning on or after October 1, 1995.

     SEC. 202. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

       (a) In General.--Section 466(a) (42 U.S.C. 666(a)) is 
     amended by adding at the end the following new paragraph:
       ``(12) Authority to withhold or suspend licenses.--
     Procedures under which the State has (and uses in appropriate 
     cases) authority (subject to appropriate due process 
     safeguards) to withhold or suspend, or to restrict the use of 
     driver's licenses, professional and occupational licenses, 
     and recreational licenses of individuals owing overdue child 
     support or failing, after receiving appropriate notice, to 
     comply with subpoenas or warrants relating to paternity or 
     child support proceedings.''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendment made by subsection (a) shall be effective with 
     respect to calendar quarters beginning on or after October 1, 
     1995.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the additional requirements imposed 
     by the amendments made by this Act, the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendments before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.

     SEC. 203. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

       (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 
     666(a)(5)) is amended--
       (1) by striking ``(5)'' and inserting ``(5) Procedures 
     concerning paternity establishment.--'';
       (2) in subparagraph (A)--
       (A) by striking ``(A)'' and inserting ``(A) Establishment 
     process available from before birth until age 18.--'';
       (B) by moving clause (ii) 2 ems to the right; and
       (C) by adding after clause (ii) the following new clause:
       ``(iii) Procedures which permit the initiation of 
     proceedings to establish paternity before the birth of the 
     child concerned.'';
       (3) in subparagraph (B)--
       (A) by striking ``(B)'' and inserting ``(B) Procedures 
     concerning genetic testing.--(i)'';
       (B) in clause (i), as redesignated, by inserting ``, where 
     such request is supported by a sworn statement by such party 
     setting forth 
      [[Page S126]] facts establishing a reasonable possibility of 
     the requisite sexual contact'' before the period at the end;
       (C) by inserting after clause (i), as so redesignated, the 
     following new clause:
       ``(ii) Procedures which require the State agency, in any 
     case in which such agency orders genetic testing--

       ``(I) to pay costs of such tests, subject to recoupment 
     (where the State so elects) from the putative father if 
     paternity is established; and
       ``(II) to obtain additional testing in any case where an 
     original test result is disputed, upon request and advance 
     payment by the disputing party.'';

       (4) by striking subparagraph (C) and inserting:
       ``(C) Voluntary acknowledgment procedure.--Procedures for a 
     simple civil process for voluntarily acknowledging paternity 
     under which--
       ``(i) the benefits, rights, and responsibilities of 
     acknowledging paternity are explained to unwed parents;
       ``(ii) due process safeguards are afforded; and
       ``(iii) hospitals and other health care facilities 
     providing inpatient or outpatient maternity and pediatric 
     services are required, as a condition of participation in the 
     State program under title XIX--

       ``(I) to explain to unwed parents the matters specified in 
     clause (i);
       ``(II) to make available the voluntary acknowledgment 
     procedure required under this subparagraph; and
       ``(III) in the case of hospitals providing maternity 
     services--

       ``(aa) to have facilities for obtaining blood or other 
     genetic samples from the mother, putative father, and child 
     for genetic testing;
       ``(bb) to inform the mother and putative father of the 
     availability of such testing (at their expense); and
       ``(cc) to obtain such samples upon request of both such 
     individuals;'';
       (5) by striking subparagraphs (D) and (E) and inserting:
       ``(D) Legal status of acknowledgment.--Procedures under 
     which--
       ``(i) a voluntary acknowledgment of paternity creates, at 
     State option, either--

       ``(I) a conclusive presumption of paternity, or
       ``(II) a rebuttable presumption which becomes a conclusive 
     presumption within one year, unless rebutted or invalidated 
     by an intervening determination which reaches a contrary 
     conclusion;

       ``(ii) at the option of the State, notwithstanding clause 
     (i), upon the request of a party, a determination of 
     paternity based on an acknowledgment may be vacated on the 
     basis of new evidence, the existence of fraud, or the best 
     interests of the child; and
       ``(iii) a voluntary acknowledgment of paternity is 
     admissible as evidence of paternity, and as a basis for 
     seeking a support order, without requiring any further 
     proceedings to establish paternity.
       ``(E) Bar on acknowledgment ratification proceedings.--
     Procedures under which no judicial or administrative 
     proceedings are required or permitted to ratify an 
     unchallenged acknowledgment of paternity.'';
       (6) by striking subparagraph (F) and inserting:
       ``(F) Admissibility of genetic testing results.--
     Procedures--
       ``(i) requiring that the State admit into evidence, for 
     purposes of establishing paternity, results of any genetic 
     test that is--

       ``(I) of a type generally acknowledged, by accreditation 
     bodies designated by the Secretary, as reliable evidence of 
     paternity; and
       ``(II) performed by a laboratory approved by such an 
     accreditation body;

       ``(ii) providing that any objection to genetic testing 
     results must be made in writing not later than a specified 
     number of days before any hearing at which such results may 
     be introduced into evidence (or, at the option of the State, 
     not later than a specified number of days after receipt of 
     such results); and
       ``(iii) providing that, if no objection is made, the test 
     results are admissible as evidence of paternity without the 
     need for foundation testimony or other proof of authenticity 
     or accuracy.''; and
       (7) by adding after subparagraph (H) the following new 
     subparagraphs:
       ``(I) Temporary support order based on probable paternity 
     in contested cases.--Procedures which require that a 
     temporary order be issued, upon motion by a party, requiring 
     the provision of child support pending an administrative or 
     judicial determination of parentage, where there is clear and 
     convincing evidence of paternity (on the basis of genetic 
     tests or other evidence).
       ``(J) Proof of certain support and paternity establishment 
     costs.--Procedures under which bills for pregnancy, 
     childbirth, and genetic testing are admissible as evidence 
     without requiring third-party foundation testimony, and 
     constitute prima facie evidence of amounts incurred for such 
     services and testing on behalf of the child.
       ``(K) Waiver of state debts for cooperation.--Procedures 
     under which the tribunal establishing paternity and support 
     has discretion to waive rights to all or part of amounts owed 
     to the State (but not to the mother) for costs related to 
     pregnancy, childbirth, and genetic testing and for public 
     assistance paid to the family where the father cooperates or 
     acknowledges paternity before or after genetic testing.
       ``(L) Standing of putative fathers.--Procedures ensuring 
     that the putative father has a reasonable opportunity to 
     initiate a paternity action.''.
       (b) Technical Amendment.--Section 468 (42 U.S.C. 668) is 
     amended by striking ``a simple civil process for voluntarily 
     acknowledging paternity and''.
       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsections (a) and (b) shall be effective 
     with respect to calendar quarters beginning on or after 
     October 1, 1996.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the additional requirements imposed 
     by the amendments made by this Act, the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendments before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.

     SEC. 204. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

       (a) State Law Requirements.--Section 466 (42 U.S.C. 666) is 
     amended--
       (1) in subsection (a)(2), by striking the first sentence 
     and inserting: ``Expedited administrative and judicial 
     procedures (including the procedures specified in subsection 
     (f)) for establishing paternity and for establishing, 
     modifying, and enforcing support obligations.''; and
       (2) by adding after subsection (e) the following new 
     subsection:
       ``(f) Expedited Procedures.--(1) Administrative action by 
     state agency.--Procedures which give the State agency the 
     authority (and recognize and enforce the authority of State 
     agencies of other States), without the necessity of obtaining 
     an order from any other judicial or administrative tribunal 
     (but subject to due process safeguards, including (as 
     appropriate) requirements for notice, opportunity to contest 
     the action, and opportunity for an appeal on the record to an 
     independent administrative or judicial tribunal), to take the 
     following actions relating to establishment or enforcement of 
     orders:
       ``(A) Establish and modify support amount.--To establish 
     and modify the amount of support awards in all cases in which 
     services are being provided under this part.
       ``(B) Genetic testing.--To order genetic testing for the 
     purpose of paternity establishment as provided in section 
     466(a)(5).
       ``(C) Default orders.--To enter a default order, upon a 
     showing of service of process and any additional showing 
     required by State law--
       ``(i) establishing paternity, in the case of any putative 
     father who refuses to submit to genetic testing; and
       ``(ii) establishing or modifying a support obligation, in 
     the case of a parent (or other obligor or obligee) who fails 
     to respond to notice to appear at a proceeding for such 
     purpose.
       ``(D) Subpoenas.--To subpoena any financial or other 
     information needed to establish, modify, or enforce an order, 
     and to sanction failure to respond to any such subpoena.
       ``(E) Access to personal and financial information.--To 
     obtain access, subject to safeguards on privacy and 
     information security, to the following records (including 
     automated access, in the case of records maintained in 
     automated data bases):
       ``(i) Records of other State and local government agencies, 
     including--
       ``(I) vital statistics (including records of marriage, 
     birth, and divorce);
       ``(II) State and local tax and revenue records (including 
     information on residence address, employer, income and 
     assets);
       ``(III) records concerning real and titled personal 
     property;
       ``(IV) records of occupational and professional licenses, 
     and records concerning the ownership and control of 
     corporations, partnerships, and other business entities;
       ``(V) employment security records;
       ``(VI) records of agencies administering public assistance 
     programs;
       ``(VII) records of the motor vehicle department; and
       ``(VIII) corrections records.
       ``(ii) Certain records held by private entities, 
     including--
       ``(I) customer records of public utilities and cable 
     television companies; and
       ``(II) information (including information on assets and 
     liabilities) on individuals who owe or are owed support (or 
     against or with respect to whom a support obligation is 
     sought) held by financial institutions (subject to 
     limitations on liability of such entities arising from 
     affording such access).
       ``(F) Income withholding.--To order income withholding in 
     accordance with section 466(a)(1) and (b).
       ``(G) Change in payee.--In cases where support is subject 
     to an assignment under section 402(a)(26), 471(a)(17), or 
     1912.
       ``(H) Secure assets to satisfy arrearages.--For the purpose 
     of securing overdue support--
       ``(i) to intercept and seize any periodic or lump-sum 
     payment to the obligor by or through a State or local 
     government agency, including--
       ``(I) unemployment compensation, workers' compensation, and 
     other benefits;
     [[Page S127]]   ``(II) judgments and settlements in cases 
     under the jurisdiction of the State or local government; and
       ``(III) lottery winnings;
       ``(ii) to attach and seize assets of the obligor held by 
     financial institutions;
       ``(iii) to attach public and private retirement funds in 
     appropriate cases, as determined by the Secretary; and
       ``(iv) to impose liens in accordance with subsection (a)(4) 
     and, in appropriate cases, to force sale of property and 
     distribution of proceeds.
       ``(I) Increase monthly payments.--For the purpose of 
     securing overdue support, to increase the amount of monthly 
     support payments to include amounts for arrearages (subject 
     to such conditions or restrictions as the State may provide).
       ``(J) Suspension of drivers' licenses.--To suspend drivers' 
     licenses of individuals owing past-due support, in accordance 
     with subsection (a)(12).
       ``(2) Substantive and procedural rules.--The expedited 
     procedures required under subsection (a)(2) shall include the 
     following rules and authority, applicable with respect to all 
     proceedings to establish paternity or to establish, modify, 
     or enforce support orders:
       ``(A) Locator information; presumptions concerning 
     notice.--Procedures under which--
       ``(i) the parties to any paternity or child support 
     proceedings are required (subject to privacy safeguards) to 
     file with the tribunal before entry of an order, and to 
     update as appropriate, information on location and identity 
     (including social security number, residential and mailing 
     addresses, telephone number, driver's license number, and 
     name, address, and telephone number of employer); and
       ``(ii) in any subsequent child support enforcement action 
     between the same parties, the tribunal shall be authorized, 
     upon sufficient showing that a diligent effort has been made 
     to ascertain such a party's current location, to deem due 
     process requirements for notice and service of process to be 
     met, with respect to such party, by delivery to the most 
     recent residential or employer address so filed pursuant to 
     clause (i).
       ``(B) Statewide jurisdiction.--Procedures under which--
       ``(i) the State agency and any administrative or judicial 
     tribunal with authority to hear child support and paternity 
     cases exerts statewide jurisdiction over the parties, and 
     orders issued in such cases have statewide effect; and
       ``(ii) in the case of a State in which orders in such cases 
     are issued by local jurisdictions, a case may be transferred 
     between jurisdictions in the State without need for any 
     additional filing by the petitioner, or service of process 
     upon the respondent, to retain jurisdiction over the 
     parties.''.
       (c) Exemptions From State Law Requirements.--Section 466(d) 
     (42 U.S.C. 666(d)) is amended--
       (1) by striking ``(d) If'' and inserting ``(d) Exemptions 
     From Requirements.--(1) In general.--Subject to paragraph 
     (2), if''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Nonexempt requirements.--The Secretary shall not 
     grant an exemption from the requirements of--
       ``(A) subsection (a)(5) (concerning procedures for 
     paternity establishment);
       ``(B) subsection (a)(10) (concerning modification of 
     orders);
       ``(C) subsection (f) (concerning expedited procedures), 
     other than paragraph (1)(A) thereof (concerning establishment 
     or modification of support amount).''.
       (d) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by subsections (a), (b), and (c) shall be 
     effective with respect to calendar quarters beginning on or 
     after October 1, 1995.
       (2) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the additional requirements imposed 
     by the amendments made by this Act, the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendments before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.

     SEC. 205. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

       (a) State Plan Requirement.--
       (1) In general.--Section 454(23) (42 U.S.C. 654(23)) is 
     amended--
       (A) by inserting ``(A)'' after ``(23)'';
       (B) by adding after subparagraph (A), as so redesignated, 
     the following new subparagraph:
       ``(B) provide that the State will regularly and frequently 
     publicize the availability and encourage the use of 
     procedures for voluntary establishment of paternity and child 
     support through a variety of means, which--
       ``(i) may include distribution of written materials at 
     health care facilities (including hospitals and clinics), and 
     other locations such as schools;
       ``(ii) may include prenatal programs to educate expectant 
     couples on individual and joint rights and responsibilities 
     with respect to paternity (and may require all expectant 
     recipients of assistance under part A to participate in such 
     prenatal programs, as an element of cooperation with efforts 
     to establish paternity and child support);
       ``(iii) may include, with respect to each child discharged 
     from a hospital after birth for whom paternity or child 
     support has not been established, reasonable follow up 
     efforts (including at least one contact of each parent whose 
     whereabouts are known, except where there is reason to 
     believe such follow up efforts would put mother or child at 
     risk), providing--

       ``(I) in the case of a child for whom paternity has not 
     been established, information on the benefits of and 
     procedures for establishing paternity; and
       ``(II) in the case of a child for whom paternity has been 
     established but child support has not been established, 
     information on the benefits of and procedures for 
     establishing a child support order, and an application for 
     child support services; and''.

       (2) Enhanced federal matching.--Section 455(a)(1)(C) (42 
     U.S.C. 655(a)(1)(C)) is amended--
       (A) by inserting ``(i)'' before ``laboratory costs'', and
       (B) by inserting before the semicolon ``, and (ii) costs of 
     outreach programs designed to encourage voluntary 
     acknowledgment of paternity''.
       (3) Effective dates.--
       (A) In general.--The amendments made by paragraph (1) shall 
     become effective October 1, 1996.
       (B) Enhanced match.--The amendments made by paragraph (2) 
     shall be effective with respect to calendar quarters 
     beginning on and after October 1, 1995.
       (b) State Outreach as Part of Voluntary Consent 
     Procedures.--
       (1) In general.--Section 466(a)(5)(C) (42 U.S.C. 
     666(a)(5)(C)), as amended by section 303(a)(4), is further 
     amended--
       (A) by striking ``and'' at the end of clause (ii); and
       (B) by inserting after clause (iii) the following new 
     clause:

       ``(iv) in coordination with the Public Health Service, the 
     State shall directly or under contract with hospitals, and 
     other health care facilities providing inpatient or 
     outpatient maternity and pediatric services (including 
     prenatal clinics, well-baby clinics, in-home public health 
     service visitations, family planning clinics, and centers 
     participating in the program described in section 17 of the 
     Child Nutrition Act of 1966 (42 U.S.C. 1786)) provide that 
     the benefits, rights and responsibilities of acknowledging 
     paternity are explained to unwed parents; and''.

       (2) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by paragraph (1) shall be effective with 
     respect to calendar quarters beginning on or after October 1, 
     1995.
       (B) Special rule.--In the case of a State that the 
     Secretary of Health and Human Services determines requires 
     State legislation (other than legislation appropriating 
     funds) in order to meet the additional requirements imposed 
     by the amendments made by this Act, the State shall not be 
     regarded as failing to comply with the requirements of such 
     amendments before the first day of the first calendar quarter 
     beginning after the close of the first regular session of the 
     State legislature that begins after the date of enactment of 
     this Act. For purposes of this paragraph, in the case of a 
     State that has a 2-year legislative session, each year of the 
     session shall be treated as a separate regular session of the 
     State legislature.
       (c) Joint Outreach Program.--
       (1) In general.--The Department of Health and Human 
     Services, the Public Health Service, and the Department of 
     Education shall cooperatively develop and implement a 
     substantial outreach program and media campaign to--
       (A) reinforce the importance of paternity establishment; 
     and
       (B) promote the message that parenting is a joint right and 
     responsibility.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the purposes of this subsection.
                 TITLE III--COMBATING TEENAGE PREGNANCY

     SEC. 301. TARGETING YOUTH AT RISK OF TEENAGE PREGNANCY.

       (a) In General.--Section 402 (42 U.S.C. 602), as amended by 
     section 103(b)(2), is further amended by adding at the end 
     the following new subsection:
       ``(k)(1) Each State agency may, to the extent it determines 
     resources are available, provide for the operation of 
     projects to reduce teenage pregnancy. Such projects shall be 
     operated by eligible entities that have submitted 
     applications described in paragraph (3) that have been 
     approved in accordance with paragraph (4).
       ``(2) For purposes of this subsection, the term `eligible 
     entity' includes State agencies, local agencies, publicly 
     supported organizations, private nonprofit organizations, and 
     consortia of such entities.
       ``(3) An application described in this paragraph shall--
       ``(A) describe the project;
       ``(B) include an endorsement of the project by the chief 
     elected official of the jurisdiction in which the project is 
     to be located;
       ``(C) demonstrate strong local commitment and local 
     involvement in the planning and implementation of the 
     project; and
     [[Page S128]]   ``(D) be submitted in such manner and 
     containing such information as the Secretary may require.
       ``(4)(A) Subject to subparagraph (B), the Governor of a 
     State may approve an application under this paragraph based 
     on selection criteria (to be determined by the Governor).
       ``(B) Preference in approving a project shall be accorded 
     to be projects that target--
       ``(i) both young men and women;
       ``(ii) areas with high teenage pregnancy rates; or
       ``(iii) areas with a high incidence of individuals 
     receiving aid to families with dependent children.
       ``(5)(A) An Indian tribe may apply to the Secretary to 
     provide for the operation of projects to reduce teenage 
     pregnancy in accordance with an application procedure to be 
     determined by the Secretary. Except as otherwise provided in 
     this subsection, the provisions of this section shall apply 
     to Indian tribes receiving funds under this subsection in the 
     same manner and to the same extent as the other provisions of 
     this section apply to States.
       ``(B) The Secretary shall limit the number of applications 
     approved under this paragraph to ensure that payments under 
     section 403(o) to Indian tribes with approved applications 
     would not result in payments of less than a minimum payment 
     amount (to be determined by the Secretary).
       ``(C) For purposes of this subsection, the term `Indian 
     tribe' means any Indian tribe, band, nation, pueblo, or other 
     organized group or community, including any Alaska Native 
     entity which is recognized as eligible for the special 
     programs and services provided by the United States to Indian 
     tribes because of their status as Indians.''.
       ``(6) A project conducted under this subsection shall be 
     conducted for not less than 3 years.
       ``(7)(A) The Secretary shall conduct a study in accordance 
     with subparagraph (B) to determine the relative effectiveness 
     of the different approaches for preventing teenage pregnancy 
     utilized in the projects conducted under this subsection.
       ``(B) The study required under subparagraph (A) shall--
       ``(i) be based on data gathered from projects conducted in 
     5 States chosen by the Secretary from among the States in 
     which projects under this subsection are operated;
       ``(ii) use specific outcome measures (determined by the 
     Secretary) to test the effectiveness of the projects;
       ``(iii) use experimental and control groups (to the extent 
     possible) that are composed of a random sample of 
     participants in the projects; and
       ``(iv) be conducted in accordance with an experimental 
     design determined by the Secretary to result in a comparable 
     design among all projects.
       ``(C) Each eligible entity conducting a project under this 
     subsection shall provide to the Secretary in such form and 
     with such frequency as the Secretary requires interim data 
     from the projects conducted under this subsection. The 
     Secretary shall report to the Congress annually on the 
     progress of such projects and shall, not later than January 
     1, 2003, submit to the Congress the study required under 
     subparagraph (A).
       ``(D) There are authorized to be appropriated $500,000 for 
     each of fiscal years 1996 through 2002 for the purpose of 
     conducting the study required under subparagraph (A).''.
       (b) Payment.--Section 403 (42 U.S.C. 603) is amended by 
     adding at the end the following new subsection:
       ``(o)(1) In addition to any payment under subsection (a) or 
     (l), each State shall be entitled to payment from the 
     Secretary for each of fiscal years 1996 through 2002 of an 
     amount equal to the lesser of--
       ``(A) 75 percent of the expenditures by the State in 
     providing for the operation of the projects under section 
     402(k), and in administering the projects under such section; 
     or
       ``(B) the limitation determined under paragraph (2) with 
     respect to the State for the fiscal year.
       ``(2)(A) The limitation determined under this paragraph 
     with respect to a State for any fiscal year is the amount 
     that bears the same ratio to $71,250,000 as the population 
     with an income below the poverty line (as such term is 
     defined in section 673(2) of the Community Services Block 
     Grant Act (42 U.S.C. 9902(2)), including any revision 
     required by such section) in the State in the second 
     preceding fiscal year bears to such population residing in 
     the United States in the second preceding fiscal year.
       ``(B) If the limitation determined under subparagraph (A) 
     with respect to a State for a fiscal year exceeds the amount 
     paid to the State under this subsection for the fiscal year, 
     the limitation determined under this paragraph with respect 
     to the State for the immediately succeeding fiscal year shall 
     be increased by the amount of such excess.
       ``(3)(A) Notwithstanding any other provision of this title, 
     for purposes of this subsection, an Indian tribe with an 
     application approved under section 402(k)(5) shall be 
     entitled to payment from the Secretary for each of fiscal 
     years 1996 through 2002 of an amount equal to the lesser of--
       ``(i) 75 percent of the expenditures by the Indian tribe in 
     providing for the operation of the projects under section 
     402(k)(5), and in administering the projects under such 
     section; or
       ``(ii) the limitation determined under subparagraph (B) 
     with respect to the Indian tribe for the fiscal year.
       ``(B)(i) The limitation determined under this subparagraph 
     with respect to an Indian tribe for any fiscal year is the 
     amount that bears the same ratio to $3,750,000 as the 
     population with an income below the poverty line (as such 
     term is defined in section 673(2) of the Community Services 
     Block Grant Act (42 U.S.C. 9902(2)), including any revision 
     required by such section) in the Indian tribe in the second 
     preceding fiscal year bears to such population of all Indian 
     tribes with applications approved under section 402(k)(5) in 
     the second preceding fiscal year.
       ``(ii) If the limitation determined under clause (i) with 
     respect to an Indian tribe for a fiscal year exceeds the 
     amount paid to the Indian tribe under this paragraph for the 
     fiscal year, the limitation determined under this 
     subparagraph with respect to the Indian tribe for the 
     immediately succeeding fiscal year shall be increased by the 
     amount of such excess.''
       ``(4) Amounts appropriated for a fiscal year to carry out 
     this part shall be made available for payments under this 
     subsection for such fiscal year.''.

     SEC. 302. NATIONAL CLEARINGHOUSE ON TEENAGE PREGNANCY.

       (a) Establishment.--The Secretary of Education, the 
     Secretary of Health and Human Services, and the Chief 
     Executive Officer of the Corporation for National and 
     Community Service shall establish a national center for the 
     collection and provision of information that relates to 
     adolescent pregnancy prevention programs, to be known as the 
     ``National Clearinghouse on Teenage Pregnancy Prevention 
     Programs''.
       (b) Functions.--The national center established under 
     subsection (a) shall serve as a national information and data 
     clearinghouse, and as a material development source for 
     adolescent pregnancy prevention programs. Such center shall--
       (1) develop and maintain a system for disseminating 
     information on all types of adolescent pregnancy prevention 
     programs and on the state of adolescent pregnancy prevention 
     program development, including information concerning the 
     most effective model programs;
       (2) identify model programs representing the various types 
     of adolescent pregnancy prevention programs;
       (3) develop networks of adolescent pregnancy prevention 
     programs for the purpose of sharing and disseminating 
     information;
       (4) develop technical assistance materials to assist other 
     entities in establishing and improving adolescent pregnancy 
     prevention programs;
       (5) participate in activities designed to encourage and 
     enhance public media campaigns on the issue of adolescent 
     pregnancy; and
       (6) conduct such other activities as the responsible 
     Federal officials find will assist in developing and carrying 
     out programs or activities to reduce adolescent pregnancy.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the purposes of this section.
                          TITLE IV--FINANCING

     SEC. 401. UNIFORM ALIEN ELIGIBILITY CRITERIA FOR PUBLIC 
                   ASSISTANCE PROGRAMS.

       (a) Federal and Federally-Assisted Programs.--
       (1) Program eligibility criteria.--
       (A) Aid to families with dependent children.--Section 
     402(a)(33) (42 U.S.C. 602(a)(33)) is amended--
       (i) by striking ``either'' and inserting ``either--''; and
       (ii) by striking ``(A) a citizen'' and all that follows 
     through the semicolon and inserting the following:
       ``(A) a citizen or national of the United States, or
       ``(B) a qualified alien (as defined in section 
     1101(a)(10)), if such alien is not disqualified from 
     receiving aid under a State plan approved under this part by 
     or pursuant to section 210(f) or 245A(h) of the Immigration 
     and Nationality Act or any other provision of law;''.
       (B) Supplemental security income.--Section 1614(a)(1)(B)(i) 
     (42 U.S.C. 1382c(a)(1)(B)(i)) is amended to read as follows:
       ``(B)(i) is a resident of the United States, and is either 
     (I) a citizen or national of the United States, or (II) a 
     qualified alien (as defined in section 1101(a)(10)), or''.
       (C) Medicaid--(i) Section 1903(v)(1) (42 U.S.C. 
     1396b(v)(1)) is amended to read as follows:
       ``(v)(1) Notwithstanding the preceding provisions of this 
     section--
       ``(A) no payment may be made to a State under this section 
     for medical assistance furnished to an individual who is 
     disqualified from receiving such assistance by or pursuant to 
     section 210(f) or 245A(h) of the Immigration and Nationality 
     Act or any other provision of law, and
       ``(B) except as provided in paragraph (2), no such payment 
     may be made for medical assistance furnished to an individual 
     who is not--
       ``(i) a citizen or national of the United States, or
       ``(ii) a qualified alien (as defined in section 
     1101(a)(10)).''.
       (ii) Section 1903(v)(2) (42 U.S.C. 1396b(v)(2)) is 
     amended--

       (I) by striking ``paragraph (1)'' and inserting ``paragraph 
     (1)(B)''; and
       (II) by striking ``alien'' each place it appears and 
     inserting ``individual''.
     [[Page S129]]   (iii) Section 1902(a) (42 U.S.C. 1396a(a)) is 
     amended in the last sentence by striking ``alien'' and all 
     that follows through the period and inserting ``individual 
     who is not (A) a citizen or national of the United States, or 
     (B) a qualified alien (as defined in section 1101(a)(10)) 
     only in accordance with section 1903(v).''.
       (iv) Section 1902(b)(3) (42 U.S.C. 1396a(b)(3)) is amended 
     by inserting ``or national'' after ``citizen''.
       (2) Qualified alien defined.--Section 1101(a) (42 U.S.C. 
     1301(a)) is amended by adding at the end the following new 
     paragraph:
       ``(10) The term `qualified alien' means an alien--
       ``(A) who is lawfully admitted for permanent residence 
     within the meaning of section 101(a)(20) of the Immigration 
     and Nationality Act;
       ``(B) who is admitted as a refugee pursuant to section 207 
     of such Act;
       ``(C) who is granted asylum pursuant to section 208 of such 
     Act;
       ``(D) whose deportation is withheld pursuant to section 
     243(h) of such Act;
       ``(E) whose deportation is suspended pursuant to section 
     244 of such Act;
       ``(F) who is granted conditional entry pursuant to section 
     203(a)(7) of such Act as in effect prior to April 1, 1980;
       ``(G) who is lawfully admitted for temporary residence 
     pursuant to section 210 or 245A of such Act;
       ``(H) who is within a class of aliens lawfully present 
     within the United States pursuant to any other provision of 
     such Act, if--
       ``(i) the Attorney General determines that the continued 
     presence of such class of aliens serves a humanitarian or 
     other compelling public interest, and
       ``(ii) the Secretary of Health and Human Services 
     determines that such interest would be further served by 
     treating each alien within such class as a `qualified alien' 
     for purposes of this Act; or
       ``(I) who is the spouse or unmarried child under 21 years 
     of age of a citizen of the United States, or the parent of 
     such a citizen if the citizen is 21 years of age or older, 
     and with respect to whom an application for adjustment to 
     lawful permanent residence is pending;
     such status not having changed.''.
       (3) Conforming amendment.--Section 244A(f)(1) of the 
     Immigration and Nationality Act (8 U.S.C. 1254(a)(f)(1)) is 
     amended by inserting ``and shall not be considered to be a 
     `qualified alien' within the meaning of section 1101(a)(10) 
     of the Social Security Act'' before the semicolon at the end.
       (b) State and Local Programs.--A State or political 
     subdivision therein may provide that an alien is not eligible 
     for any program of assistance based on need that is furnished 
     by such State or political subdivision unless such alien is a 
     ``qualified alien'' within the meaning of section 1101(a)(10) 
     of the Social Security Act (as added by subsection (a)(2) of 
     this section).
       (c) Effective Date.--(1) The amendments made by subsection 
     (a) are effective with respect to benefits payable on the 
     basis of any application filed after the date of enactment of 
     this Act.
       (2) Subsection (b) is effective upon the date of enactment 
     of this Act.

     SEC. 402. STATE RETENTION OF AMOUNTS RECOVERED.

       Section 16(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(a)) is amended in the proviso of the first sentence by 
     striking ``1995'' each place such term appears and inserting 
     ``2004''.

  Mr. ROCKEFELLER. Mr. President, for years, as Governor of West 
Virginia and as a U.S. Senator, I have advocated changes to our welfare 
system so that it promotes work and responsibility. I am proud to 
continue these efforts by joining Senator Daschle and other colleagues 
in sponsoring S. 8, the Teen Pregnancy Prevention and Parent 
Responsibility Act.
  This legislation is an essential step that builds on the Family 
Support Act of 1988 in reforming our welfare system. It emphasizes 
parental responsibility and makes real reforms designed to address the 
issues of teen pregnancy. As noted in the final report of the 
bipartisan National Commission on Children, unmarried teenage mothers 
often lack the maturity, economic means, and parenting skills to care 
for themselves and their children.
  For West Virginia, this issue is of major importance. According to 
the 1993 West Virginia Kids Count, births to unmarried teens has 
increased by 60 percent between 1980 and 1991 in my State. The 
percentage of births to unwed teen parents is tragically a predictor of 
economic hardship for both mother and child. This trend must be 
reversed for the sake of teens, children, and our future.
  This bill boldly confronts this concern by requiring unwed mothers 
under the age of 18 to live with an adult family member or in a 
supervised group home in order to receive Federal Aid to Families with 
Dependent Children [AFDC]. Unwed teen mothers would also be required to 
stay in school and complete their high school education in order to 
receive benefits. If substance abuse is a problem, unwed teen mothers 
would have to seek counseling. These are major changes designed to help 
both unwed teen mothers and their children. It is an effort to try and 
ensure that a caring adult is involved with both teen parent and 
infant. Also, it is one of the toughest initiatives yet to ensure that 
teenage mothers stay in school and get the education they will need to 
avoid a lifetime of dependency.
  There is broad consensus about the need to change our welfare system 
from a program that can inadvertently trap families in a lifetime of 
dependency into a transitional assistance program that fosters work and 
responsibility. But there are major questions about how to achieve this 
goal.
  As we debate a series of welfare reform proposals, I will judge each 
proposal by the fundamental question of how each change will affect 
both the poor parent and the child. Welfare reform should not punish 
vulnerable children or their parents. Reform should encourage self-
sufficiency in firm but fair ways. Senator Daschle's legislation passes 
this test with flying colors. It will help both unwed teen parents and 
child by ensuring the involvement of an adult, and by keeping teens in 
school.
  Obviously, more work must be done to reform our overall welfare 
system since the Department of Health and Human estimates that teen 
parents are less than 10 percent of all families on welfare. But this 
legislation is a sensible first step focusing on unwed teen parents and 
it will hopefully help break a cycle of dependency early.
  In additional to the eligibility requirements for unwed teen parents 
to receive AFDC, the bill gives States and communities funding to 
invest in pregnancy prevention for at risk youth. The legislation is 
paid for in responsible ways including provision to strengthen child 
support enforcement, another key way to promote parental responsibility 
among absent fathers.
  Teenage pregnancy is a complicated issue facing our society, and 
there are no simple solutions or quick answers. But I believe that the 
Teenage Pregnancy Prevention and Parent Responsibility Act lays out 
needed change in Federal policy. Current Federal policy enables teen 
parents on welfare to establish their own independent household by 
offering them Federal assistance, but this legislation dramatically 
changes the rules and incentives. It sends a fundamental message to 
unwed teen parents to stay in school and seek help from caring adults, 
preferably their families. While this bill is not a silver bullet, it 
is a serious, substantive effort to ensure that Federal policy reflects 
American values for families and children.
                                 ______

      By Mr. DASCHLE (for himself, Mr. Exon, Ms. Mikulski, Mr. Breaux, 
        Mr. Robb, Mr. Kerry, Mr. Pell, and Ms. Moseley-Braun):
  S. 9. A bill to direct the Senate and the House of Representatives to 
enact legislation on the budget for fiscal years 1995 through 2003 that 
would balance the budget by fiscal year 2003; to the Committee on the 
Budget and the Committee on Governmental Affairs, jointly, pursuant to 
the order of August 4, 1977, with insturctions that if one Committee 
reports, the other Committee have thirty days to report or be 
discharged.


          BUDGET RESOLUTION FOR FISCAL YEARS 1995 THROUGH 2003

  Mr. DASCHLE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                  S. 9

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

     SECTION 1. BUDGET RESOLUTION FOR FISCAL YEARS 1996 THROUGH 
                   2003.

       Not later than the end of the 1st session of the 104th 
     Congress, the Senate and House of Representatives shall--
       (1) adopt a concurrent resolution on the budget for fiscal 
     years 1996 through 2003; and
       (2) enact all the necessary authorizing and appropriations 
     legislation,

     that would balance the Federal budget by the beginning of 
     fiscal year 2003.
                                 ______

      By Mr. DASCHLE (for himself, Mr. Glenn, Mr. Levin, Ms. Mikulski, 
        Mr. Breaux, Mr. 
       [[Page S130]]   Kerry, Ms. Moseley-Braun, and Mr. Harkin):
  S. 10. A bill to make certain laws applicable to the legislative 
branch of the Federal Government, to reform lobbying registration and 
disclosure requirements, to amend the gift rules of the Senate and the 
House of Representatives, and to reform the Federal election laws 
applicable to the Congress; to the Committee on Governmental Affairs.


                 COMPREHENSIVE CONGRESSIONAL REFORM ACT

  Mr. DASCHLE. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection the bill was ordered to be printed in the 
Record, as follows:
                                 S. 10

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Comprehensive Congressional 
     Reform Act of 1995 ''.
    DIVISION A--EXTENSION OF RIGHTS AND PROTECTIONS, AND ASSOCIATED 
                               PROCEDURES
     SEC. 100. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress makes the following findings:
       (1) All employees of the House of Representatives, of the 
     Senate, and of the congressional instrumentalities are 
     entitled to fundamental rights and protections provided by 
     law to private and other public employees.
       (2) The Congress has made notable progress in ensuring that 
     such rights and protections are afforded to these legislative 
     branch employees, by--
       (A) extending to employees of the House of Representatives 
     the provisions of the Civil Rights Act of 1964, the Americans 
     with Disabilities Act of 1990, the Family and Medical Leave 
     Act of 1993, and the Fair Labor Standards Act of 1938;
       (B) extending to employees of the Senate the provisions of 
     the Civil Rights Act of 1964, the Age Discrimination in 
     Employment Act of 1967, the Rehabilitation Act of 1973, the 
     Americans with Disabilities Act of 1990, and the Family and 
     Medical Leave Act of 1993; and
       (C) extending to employees of congressional 
     instrumentalities numerous rights and protections under 
     employment laws.
       (3) The Congress should expand on this base of rights and 
     protections by eliminating gaps in coverage and extending 
     coverage so as to assure to legislative branch employees the 
     rights and protections of laws on employment discrimination, 
     family and medical leave, fair labor standards, labor-
     management relations, occupational safety and health, 
     polygraph protection and worker retraining.
       (4) The Congress should likewise establish prompt, fair, 
     and independent processes to resolve disputes and to enforce 
     employee rights and protections, building on and 
     strengthening the dispute resolution and enforcement 
     procedures already established by the Government Employees 
     Rights Act of 1991 (2 U.S.C. 1201 et seq.), section 117 of 
     the Civil Rights Act of 1991 (2 U.S.C. 60l), and other 
     relevant statutes and rules of Congress.
       (5) The extension of employee rights and protections 
     affecting employees of the Architect of the Capitol and the 
     Capitol Police should be accomplished in a manner that 
     ensures that they are treated in a consistent manner 
     regardless of their place of assignment within the Congress.
       (6) The extension of employee rights and protections should 
     be accomplished in a manner that is consistent with the 
     responsibilities and functions of the House of 
     Representatives and the Senate under the Constitution.
       (b) Purposes.--The purposes of this Act are to eliminate 
     gaps in coverage, extend coverage, and establish prompt, 
     fair, and independent dispute resolution and enforcement 
     procedures, for rights and protections established by--
       (1) title VII of the Civil Rights Act of 1964;
       (2) the Fair Labor Standards Act of 1938;
       (3) the Age Discrimination in Employment Act of 1967;
       (4) the Americans with Disabilities Act of 1990;
       (5) the Rehabilitation Act of 1973;
       (6) the Family and Medical Leave Act of 1993;
       (7) the Occupational Safety and Health Act of 1970; and
       (8) chapter 71 of title 5, United States Code (commonly 
     known as the ``Federal Service Labor-Management Relations 
     Statute'').
       (9) The Employee Polygraph Protection Act of 1988.
       (10) The Worker Adjustment and Retraining Notification Act.
       (11) Chapter 43 of title 38, United States Code (relating 
     to veterans' employment and reemployment).

     SEC. 100A. DEFINITIONS.

       Except as otherwise specifically provided in this Act, as 
     used in this Act:
       (1) Board.--The term ``Board'' means the Board of Directors 
     of the Office of Congressional Fair Employment Practices 
     appointed under section 202.
       (2) Calendar day of continuous session.--The term 
     ``calendar day of continuous session'' means a calendar day 
     other than one on which either House is not in session 
     because of an adjournment of more than three days to a date 
     certain.
       (3) Chair.--The term ``Chair'' means the Chair of the Board 
     of Directors of the Office of Congressional Fair Employment 
     Practices appointed under section 202(b).
       (4) Covered employee.--The term ``covered employee'' means 
     any employee of--
       (A) the House of Representatives;
       (B) the Senate;
       (C) the Architect of the Capitol;
       (D) the Congressional Budget Office;
       (E) the Office of Technology Assessment; or
       (F) the Office of Congressional Fair Employment Practices.
       (5) Director.--The term ``Director'' means the Director of 
     the Office of Congressional Fair Employment Practices 
     appointed under section 203(a).
       (6) Employee of the architect of the capitol.--The term 
     ``employee of the Architect of the Capitol'', means--
       (A) any employee of the Architect of the Capitol, the 
     Botanic Garden, or the Senate Restaurants;
       (B) any applicant for a position that is to be occupied by 
     an individual described in subparagraph (A) and whose claim 
     of a violation under this Act arises out of the application; 
     and
       (C) any individual who was formerly an employee described 
     in subparagraph (A) and whose claim of a violation under this 
     Act arises out of the employment.
       (7) Employee of certain congressional instrumentalities.--
     The terms ``employee of the Congressional Budget Office'', 
     ``employee of the Office of Technology Assessment'', and 
     ``employee of the Office of Congressional Fair Employment 
     Practices'' mean, respectively--
       (A) any employee of the Congressional Budget Office, the 
     Office of Technology Assessment, or the Office of 
     Congressional Fair Employment Practices;
       (B) any applicant for a position that is to be occupied by 
     an individual described in subparagraph (A) and whose claim 
     of a violation under this Act arises out of the application; 
     and
       (C) any individual who was formerly an employee described 
     in subparagraph (A) and whose claim of a violation under this 
     Act arises out of the employment.
       (8) Employee of the house of representatives.--The term 
     ``employee or the House of Representatives'' means--
       (A) an individual occupying a position the pay for which is 
     disbursed by the Clerk of the House of Representatives, or 
     another official designated by the House of Representatives, 
     or any employment position in a legislative service 
     organization or other entity that is paid through funds 
     derived from the clerk-hire allowance of the House of 
     Representatives, including any such individual employed by 
     the Capitol Police, the Capitol Guide Service, or the Office 
     of the Attending Physician, but not including an individual 
     employed by the Congressional Budget Office or the Architect 
     of the Capitol;
       (B) any applicant for a position described in subparagraph 
     (A) whose claim of a violation under this Act arises out of 
     the application; and
       (C) any individual who was formerly an employee described 
     in subparagraph (A) and whose claim of a violation under this 
     Act arises out of the employment.
       (9) Employee of the senate.--The term ``employee of the 
     Senate'' means--
       (A) any employee whose pay is disbursed by the Secretary of 
     the Senate, including any such individual employed by the 
     Capitol Police, the Capitol Guide Service, or the Office of 
     the Attending Physician, but not including an individual 
     employed by the Architect of the Capitol;
       (B) any applicant for a position that is to be occupied by 
     an individual described in subparagraph (A) and whose claim 
     of a violation under this Act arises out of the application; 
     and
       (C) any individual who was formerly an employee described 
     in subparagraph (A) and whose claim of a violation under this 
     Act arises out of the employment.
       (10) Employing office.--The term ``employing office'' means 
     the personal office of a Member of the House of 
     Representatives or a Senator or any other office under the 
     authority of a head of an employing office.
       (11) General counsel.--The term ``General Counsel'' means 
     the General Counsel of the Office of Congressional Fair 
     Employment Practices appointed under section 203(c).
       (12) Head of an employing office.--The term ``head of an 
     employing office'' means--
       (A) the Member of Congress or the officer or employee or 
     board or other entity of the Congress that has final 
     authority to appoint, hire, discharge, and set the terms, 
     conditions, or privileges of the employment of an employee of 
     the House of Representatives or an employee of the Senate; 
     and
       (B) the Architect of the Capitol, the Director of the 
     Congressional Budget Office, the Director of the Office of 
     Technology Assessment, and the Board of the Office of 
     Congressional Fair Employment Practices.

     For purposes of the minority staff of a committee, the 
     ranking minority member shall be the head of the employing 
     office.
       (13) Office.--The term ``Office'' means the Office of 
     Congressional Fair Employment Practices established under 
     section 201.
    [[Page S131]] TITLE I--EXTENSION OF RIGHTS AND PROTECTIONS, AND 
                         ASSOCIATED PROCEDURES

     SEC. 101. RIGHTS AND PROTECTIONS UNDER LAWS AGAINST 
                   EMPLOYMENT DISCRIMINATION.

       (a) Discriminatory Practices Prohibited.--
       (1) In general.--All personnel actions affecting covered 
     employees shall, in accordance with the terms of this 
     section, be made free from any discrimination based on--
       (A) race, color, religion, sex, or national origin, within 
     the meaning of section 717 of the Civil Rights Act of 1964 
     (42 U.S.C. 2000e-16);
       (B) age, within the meaning of section 15 of the Age 
     Discrimination in Employment Act of 1967 (29 U.S.C. 633a); or
       (C) handicap or disability, within the meaning of section 
     501 of the Rehabilitation Act of 1973 (29 U.S.C. 791) and 
     sections 102 through 104 of the Americans with Disabilities 
     Act of 1990 (42 U.S.C. 12112-12114).
       (2) Prohibition of intimidation or reprisal.--Any 
     intimidation of, or reprisal against, any covered employee 
     because of the exercise of a right under section 107 or 109 
     with respect to rights and protections under this Act 
     constitutes an unlawful employment practice, which may be 
     remedied in the same manner as is a violation of paragraph 
     (1).
       (b) Available Relief.--
       (1) Civil rights.--The relief for a violation of subsection 
     (a)(1)(A) shall be such relief as would be appropriate if 
     awarded under sections 706(g) and 706(k) of the Civil Rights 
     Act of 1964 (42 U.S.C. 2000e-5(g) and 2000e-5(k), and the 
     same interest to compensate for delay in payment shall be 
     available as in cases involving nonpublic parties; and 
     including such compensatory damages (not exceeding, for each 
     complaining party, and irrespective of the size of the 
     employing office, the maximum amount available under section 
     1977A(b)(3)(D)) of the Revised Statutes (42 U.S.C. 
     1981a(b)(3)(D)) as would be appropriate if awarded under 
     section 1977 and sections 1977(A)(a) and (b)(2) of the 
     Revised Statutes (42 U.S.C. 1981, 1981a (a), and (b)(2)).
       (2) Age discrimination.--The relief for a violation of 
     subsection (a)(1)(B) shall be such relief as would be 
     appropriate if awarded under section 15(c) of the Age 
     Discrimination in Employment Act of 1967 (29 U.S.C. 633a(c)).
       (3) Disabilities discrimination.--The relief for a 
     violation of subsection (a)(1)(C) shall be such relief as 
     would be appropriate if awarded under section 505(a) of the 
     Rehabilitation Act of 1973 (29 U.S.C. 794a(a)(1)) or section 
     107(a) of the Americans with Disabilities Act of 1990 (42 
     U.S.C. 12117(a)).
       (4) Punitive damages.--Punitive damages shall not be 
     available for a violation of subsection (a).
       (c) Exclusive Procedures.--No covered employee may commence 
     an administrative or judicial proceeding to seek a remedy for 
     practices prohibited under this section except as provided in 
     section 107. Only a covered employee who has undertaken and 
     completed the procedures described in section 107 (1) through 
     (3) may be granted relief under this section.
       (d) Clarification of Application to General Accounting 
     Office, Government Printing Office, and Library of 
     Congress.--
       (1)Section 717 of the civil rights act of 1964.--Section 
     717(a) of the Civil Rights Act of 1964 (42 U.S.C. 2000e-16) 
     is amended by--
       (A) striking ``legislative and'';
       (B) striking ``branches'' and inserting ``branch''; and
       (C) inserting ``Government Printing Office, the General 
     Accounting Office, and the'' after ``and in the''.
       (2) Section 15 of the age discrimination in employment act 
     of 1967.--Section 15(a) of the Age Discrimination in 
     Employment Act of 1967 (29 U.S.C. 633a(a)) is amended by--
       (A) striking ``legislative and'';
       (B) striking ``branches'' and inserting ``branch''; and
       (C) inserting ``Government Printing Office, the General 
     Accounting Office, and the'' after ``and in the''.
       (3) Section 509 of the americans with disabilities act of 
     1990.--Section 509 of the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12209) is amended--
       (A) by striking subsections (a) and (b) of section 509;
       (B) in subsection (c), by striking ``(c) Instrumentalities 
     of congress.--'' and inserting ``The General Accounting 
     Office, the Government Printing Office, and the Library of 
     Congress shall be covered as follows:'';
       (C) by striking the second sentence of paragraph (2);
       (D) in paragraph (4), by striking ``instrumentalities of 
     the Congress include'' and inserting ``the term 
     instrumentality of the Congress' means'', by striking ``the 
     Architect of the Capitol, the Congressional Budget Office'', 
     by inserting ``and'' before ``the Library'', and by striking 
     ``the Office of Technology Assessment, and the United States 
     Botanic Garden'';
       (E) by redesignating paragraph (5) as paragraph (7) and by 
     inserting after paragraph (4) the following new paragraph:
       ``(5) Enforcement of employment rights.--The remedies, 
     procedures, and rights set forth in section 717 of the Civil 
     Rights Act of 1964 (42 U.S.C. 2000e-16) shall be available to 
     any employee of an instrumentality of the Congress who 
     alleges a violation of the rights and protections under 
     sections 102 through 104 of the Americans with Disabilities 
     Act of 1990 (42 U.S.C. 12112-12114) that are made applicable 
     by this section, except that the authorities of the Equal 
     Employment Opportunity Commission shall be exercised by the 
     chief official of each instrumentality of the Congress.''; 
     and
       (F) by amending the title of the section to read 
     ``INSTRUMENTALITIES OF THE CONGRESS''.
       (e) Effective Date.--This section shall be effective 9 
     months after the date of enactment of this Act.

     SEC. 102. RIGHTS AND PROTECTIONS UNDER THE FAMILY AND MEDICAL 
                   LEAVE ACT OF 1993.

       (a) Family and Medical Leave Rights and Protections 
     Provided.--
       (1) In general.--The rights and protections established 
     under sections 101 through 105 of the Family and Medical 
     Leave Act of 1993 (29 U.S.C. 2611-2615) shall apply, in 
     accordance with this section, with respect to covered 
     employees.
       (2) Definitions.--For purposes of the application described 
     in paragraph (1)--
       (A) the term ``eligible employee'' means--
       (i) any employee of the House of Representatives who has 
     been employed for at least 12 months on other than a 
     temporary or intermittent basis by any employing office of 
     the House of Representatives; and
       (ii) any employee of the Senate who has been employed for 
     at least 12 months on other than a temporary or intermittent 
     basis by any employing office of the Senate; and
       (B) the term ``employer'' means any employing office.
       (b) Available Relief.--The relief for a violation of 
     subsection (a) shall be such relief as would be appropriate 
     if awarded under paragraph (1) or (3) of section 107(a) of 
     the Family and Medical Leave Act of 1993 (29 U.S.C. 2617(a) 
     (1) or (3)).
       (c) Exclusive Procedures.--No covered employee may commence 
     an administrative or judicial proceeding to seek a remedy for 
     a violation of the rights and protections afforded in this 
     section except as provided in section 107. Only a covered 
     employee who has undertaken and completed the procedures 
     described in section 107 (1) through (3) may be granted 
     relief under this section.
       (d) Rules To Implement Section.--
       (1) In general.--Not later than January 3, 1996, the Board 
     shall, pursuant to section 204, issue any rules necessary to 
     implement the rights and protections under this section.
       (2) Agency regulations.--The rules promulgated under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Secretary of Labor to implement the 
     statutory provisions referred to in subsections (a) and (b) 
     except insofar as the Board may determine, for good cause 
     shown and stated together with the rule, that a different 
     rule would better serve the purposes of such statutory 
     provisions and of this Act.
       (e) Application to General Accounting Office and Library of 
     Congress.--
       (1) Family and medical leave act of 1993.--Section 
     101(4)(A) of the Family and Medical Leave Act of 1933 (29 
     U.S.C. 2611(4)(A)) is amended by striking ``and'' at the end 
     of clause (ii), by striking the period at the end of clause 
     (iii) and inserting ``; and'', and by adding after clause 
     (iii) the following:
       ``(iv) includes the General Accounting Office and the 
     Library of Congress.''.
       (2) Civil service employees.--Section 6381(1)(A) of title 
     5, United States Code, is amended by striking ``and'' after 
     ``District of Columbia'' and inserting before the semicolon 
     the following: ``, and any employee of the General Accounting 
     Office and the Library of Congress''.
       (3) Enforcement.--Section 107 of the Family and Medical 
     Leave Act of 1993 (29 U.S.C 2617) is amended by adding at the 
     end the following:
       ``(f) General Accounting Office and Library of Congress.--
       ``(1) Procedures.--Procedures for the enforcement of 
     section 105 for the General Accounting Office and the Library 
     of Congress shall be limited to the procedures described in 
     subsection (a).
       ``(2) Secretary of labor.--In the case of the General 
     Accounting Office and the Library of Congress, the authority 
     of the Secretary of Labor under this title shall be exercised 
     respectively by the head official of the General Accounting 
     Office and the Library of Congress.''.
       (f) Effective Date.--Subsection (a) through (d) shall be 
     effective on the effective date of the rules issued under 
     subsection (d) or 1 year after the date of enactment of this 
     Act, whichever is earlier.

     SEC. 103. RIGHTS AND PROTECTIONS UNDER THE FAIR LABOR 
                   STANDARDS ACT.

       (a) Fair Labor Standards.--
       (1) In general.--Subject to the limitations in section 
     13(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
     213(a)(1)), the rights and protections established under 
     subsections (a)(1) and (d) of section 6, section 7, section 
     12(c), and section 15(a)(3) of such Act (29 U.S.C. 206 (a)(1) 
     and (d), 207, 212(c), 215(a)(3)) shall apply, in accordance 
     with this section, with respect to covered employees.
       (2) Volunteer services excepted.--For the purposes of this 
     section, the term ``employee'' does not include any 
     individual who volunteers to perform services under the same 
     conditions as would exclude an individual who volunteers to 
     perform services for a State, a political subdivision of a 
     State, or an interstate governmental agency under section 
     3(e)(4)(A) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
     203(e)(4)(A)).
     [[Page S132]]   (b) Available Relief.--The relief for a 
     violation of subsection (a) shall be such relief as would be 
     appropriate if awarded under section 16(b) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 216(b)).
       (c) Exclusive Procedures.--No covered employee may commence 
     an administrative or judicial proceeding to seek a remedy for 
     a violation of the rights and protections afforded in this 
     section except as provided in section 107. Only a covered 
     employee who has undertaken and completed the procedures 
     described in section 107 (1) through (3) may be granted 
     relief under this section.
       (d) Rules To Implement Section.--
       (1) In general.--Not later than January 3, 1996, the Board 
     shall, pursuant to section 204, issue any rules necessary to 
     implement the rights and protections under this section.
       (2) Agency regulations.--The rules promulgated under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Secretary of Labor to implement the 
     statutory provisions referred to in subsections (a) and (b) 
     except insofar as the Board may determine, for good cause 
     shown and stated together with the rule, that a different 
     rule would better serve the purposes of such statutory 
     provisions and of this Act.
       (3) Irregular work schedules.--As part of the rules under 
     this subsection, the Board shall study and, pursuant to 
     section 204, issue rules establishing the manner and extent 
     to which the requirements of this section shall apply to 
     covered employees whose work schedule directly depends on the 
     schedule of the House of Representatives or the Senate. Such 
     rules shall include provisions comparable to the provisions 
     in the Fair Labor Standards Act of 1938 that apply to private 
     and public employees who have irregular work schedules.
       (e) Clarification of application to the Government Printing 
     Office.--Section 3(e)(2)(A) of the Fair Labor Standards Act 
     of 1938 (29 U.S.C. 203(e)(2)(A)) is amended--
       (1) in clause (iii), by striking ``legislative or'',
       (2) by striking ``or'' at the end of clause (iv),
       (3) by striking the semicolon at the end of clause (v) and 
     inserting ``, or'', and
       (4) by adding after clause (v) the following:
       ``(vi) the Government Printing Office;''.
       (f) Effective Dates.--Subsections (a) through (c) shall be 
     effective on the effective date of the rules issued under 
     subsection (d) or on July 1, 1996, whichever is earlier.

     SEC. 104. RIGHTS AND PROTECTIONS UNDER EMPLOYEE POLYGRAPH 
                   PROTECTION ACT.

       (a) Polygraph Protection Rights.--
       (1) In general.--The rights and protections of the Employee 
     Polygraph Protection Act of 1988 (29 U.S.C. 2001 et seq.) 
     shall apply, in accordance with this section, with respect to 
     covered employees.
       (2) Coverage.--For purposes of this section, the term 
     ``covered employee'' shall include employees of the General 
     Accounting Office, the Library of Congress, and the term 
     ``employing office'' shall included the General Accounting 
     Office and the Library of Congress.
       (b) Available Relief.--The relief for a violation of 
     subsection (a) shall be such relief as would be appropriate 
     if awarded under section 6(c)(1), (3) of the Employee 
     Polygraph Protection Act of 1988 (29 U.S.C. 20005(c)(1), 
     (3)).
       (c) Exclusive Procedures.--No covered employee may commence 
     an administrative or judicial proceeding to seek a remedy for 
     any violation of or to enforce any rights and protections 
     provided by this section except as provided in section 107. 
     Only a covered employee who has undertaken and completed the 
     procedures described in sections 107 (1) through (3) may be 
     granted relief under this section.
       (d) Rules To Implement Section.--Not later than January 3, 
     1997, the Board shall issue rules pursuant to section 204 on 
     the manner and extent to which the requirements, exemptions, 
     and relief (except for penalties) of the Employee Polygraph 
     Protection Act of 1988 should apply to covered employees and 
     offices of the legislative branch. In issuing such 
     regulations, the Board shall, to the greatest extent 
     practicable, be consistent with the provisions and purposes 
     of such Act and any regulations issued by the Secretary of 
     Labor under such Act, and the purposes of this Act.
       (e) Effective Date.--Subsections (a) and (b) shall be 
     effective on the effective date of the rules issued under 
     subsection (c) or on July 1, 1997, whichever is earlier; 
     except that subsections (a) and (b) shall be effective with 
     respect to the General Accounting Office and the Library of 
     Congress 1 year after the completion of the study under 
     section 112.

     SEC. 105. RIGHTS AND PROTECTIONS UNDER WORKER ADJUSTMENT AND 
                   RETRAINING ACT.

       (a) Worker Adjustment and Retraining Rights.--
       (1) In general.--The rights and protections of the Worker 
     Adjustment and Retraining Notification Act (29 U.S.C. 2101 et 
     seq.) shall apply, in accordance with this section, with 
     respect to covered employees.
       (2) Coverage.--For purposes of this section, the term 
     ``covered employee'' shall include employees of the General 
     Accounting Office and the Library of Congress, and the term 
     ``employing office'' shall include the General Accounting 
     Office and the Library of Congress.
       (b) Available Relief.--The relief for a violation of 
     subsection (a) shall be such relief as would be appropriate 
     if awarded under section 5 of the Worker Adjustment and 
     Retraining Notification Act of 1988 (29 U.S.C. 2104(a)).
       (c) Exclusive Procedures.--No person may commence an 
     administrative or judicial proceeding to seek a remedy for 
     any violation of or to enforce any rights and protections 
     provided by this section except as provided in section 107. 
     Only a covered employee who has undertaken and completed the 
     procedures described in section 107 (1) through (3) may be 
     granted relief under this section.
       (d) Rules To Implement Section.--Not later than January 3, 
     1997, the Board shall issue rules pursuant to section 204 on 
     the manner and extent to which the requirements, exemptions, 
     and relief of the Worker Adjustment and Retraining Act should 
     apply to covered employees and employing offices. In issuing 
     such regulations, the Board shall, to the greatest extent 
     practicable, be consistent with the provisions and purposes 
     of such Act and any regulations issued by the Secretary of 
     Labor under such Act, and the purposes of this Act.
       (e) Effective Date.--Subsections (a) and (b) shall be 
     effective on the effective date of the rules issued under 
     subsection (c) or on July 1, 1997, whichever is earlier; 
     except that subsections (a) and (b) shall be effective with 
     respect to the General Accounting Office and the Library of 
     Congress 1 year after the completion of the study under 
     section 112.

     SEC. 106. RIGHTS AND PROTECTIONS UNDER CHAPTER 43 OF TITLE 
                   38, UNITED STATES CODE.

       (a) Employment and Reemployment Rights of Members of the 
     Uniformed Services.--
       (1) In general.--It shall be unlawful for an employing 
     office to--
       (A) discriminate, within the meaning of sections 4311(a) 
     and 4311(b) of title 38, United States Code, against an 
     eligible employee;
       (B) deprive an eligible employee of reemployment rights 
     within the meaning of sections 4312 and 4313 of title 38, 
     United States Code; or
       (C) deprive an eligible employee of benefits within the 
     meaning of sections 4316, 4317, and 4318 of title 38, United 
     States Code.
       (2) Definition.--For purposes of this section, the term 
     ``eligible employee'' means a covered employee performing 
     service in the uniformed services, within the meaning of 
     section 4303(13) of title 38, United States Code, whose 
     service has not been terminated upon occurrence of any of the 
     events enumerated in section 4304 of title 38, United States 
     Code.
       (3) Coverage.--For purposes of this section, the term 
     ``covered employee'' shall include employees of the General 
     Accounting Office and the Library of Congress and the term 
     ``employing office'' shall include the General Accounting 
     Office and the Library of Congress.
       (b) Available Relief.--The relief for a violation of 
     subsection (a) shall be such relief as would be appropriate 
     if awarded under section 4323(c)(1) of title 38, United 
     States Code.
       (c) Exclusive Procedures.--No person may commence an 
     administrative or judicial proceeding to seek a remedy for 
     practices prohibited under this section except as provided in 
     section 107 and section 4314(c) of title 38, United States 
     Code. Only a covered employee who has undertaken and 
     completed the procedures described in section 107 (1) through 
     (3) may be granted relief under this section.
       (d) Rules To Implement Section.--
       (1) In general.--Not later than January 3, 1996, the Board 
     shall, pursuant to section 204, issue any rules necessary to 
     implement the rights and protections under this section.
       (2) Agency regulations.--The rules promulgated under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Secretary of Labor to implement the 
     statutory provisions referred to in subsection (a) except to 
     the extent that the Board may determine, for good cause shown 
     and stated together with the regulation, that a different 
     regulation would better serve the purposes of such statutory 
     provisions and of this Act.
       (e) Effective Date.--This section shall be effective on the 
     effective date of the regulations issued under subsection (d) 
     or on July 1, 1997, whichever is earlier; except that 
     subsections (a) and (b) shall be effective with respect to 
     the General Accounting Office and the Library of Congress 1 
     year after the completion of the study under section 112.

     SEC. 107. PROCEDURES FOR REMEDY OF EMPLOYMENT DISCRIMINATION, 
                   FAMILY AND MEDICAL LEAVE, AND FAIR LABOR 
                   STANDARDS VIOLATIONS.

       The exclusive procedures for remedy of violations of 
     sections 101, 102, 103, 104, 105, and 106 shall be as 
     follows:
       (1) Counseling.--Any covered employee alleging a violation 
     of section 101, 102, 103, 104, 105, or 106 may request 
     counseling by the Office. Such counseling shall be conducted 
     pursuant to the provisions of section 301 and shall be 
     requested within the time specified in section 307.
       (2) Mediation.--Not later than 15 days after the Office 
     gives notification to an employee pursuant to section 301(d) 
     of the end of the period of counseling under paragraph (1), 
     the employee may file a request for mediation with the 
     Office. On the filing of such a request, the Office shall 
     conduct mediation in accordance with section 302.
       (3) Choice of adjudicatory proceeding.--Not later than 90 
     days after the Office gives notice pursuant to section 302(f) 
     of the end of the period of mediation, but not sooner than 
      [[Page S133]] 30 days after such notification, an employee 
     may either--
       (A) file a formal complaint with the Office in accordance 
     with section 303; or
       (B) file a civil action in the United States district court 
     for the district in which the employee is employed or for the 
     District of Columbia, subject to the provisions of section 
     306.
       (4) Appeal to the board.--Any party aggrieved by a final 
     decision of the hearing officer with respect to a formal 
     complaint filed with the Office pursuant to paragraph (3)(A) 
     may appeal to the Board pursuant to section 304 not later 
     than 30 days after the entry of the final decision of a 
     hearing officer under section 303(g).
       (5) Judicial review.--Any party aggrieved by a final 
     decision of the Board under paragraph (4) may file a petition 
     for review in the United States Court of Appeals for the 
     Federal Circuit pursuant to section 305 not later than 90 
     days after the entry of the final decision of the Board under 
     section 304(e).

     SEC. 108. RIGHTS AND PROTECTIONS UNDER THE AMERICANS WITH 
                   DISABILITIES ACT OF 1990 RELATING TO PUBLIC 
                   SERVICES AND ACCOMMODATIONS; PROCEDURES FOR 
                   REMEDY OF VIOLATIONS.

       (a) Entities Subject to This Section.--The requirements of 
     this section shall apply to--
       (1) each office of the Senate;
       (2) each office of the House of Representatives;
       (3) each joint committee of the Congress;
       (4) the Office of the Architect of the Capitol (including 
     the Senate Restaurants and the Botanic Garden);
       (5) the Capitol Guide Service;
       (6) the Capitol Police;
       (7) the Congressional Budget Office;
       (8) the Office of Technology Assessment; and
       (9) the Office of Congressional Fair Employment Practices.
       (b) Discrimination in Public Services.--
       (1) Rights and protections.--The rights and protections 
     against discrimination in the provision of public services 
     established under sections 201 through 230, 302, 303, 309, 
     503(a), and 503(b) of the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12131-12150, 12182-12183, 12189, 12203(a), 
     12203(b)) shall apply, pursuant to the terms of this section, 
     to the entities listed in subsection (a).
       (2) Coverage.--The rights and protections of paragraph (1) 
     shall apply, pursuant to the terms of this section, to any 
     qualified individual with a disability (as defined in section 
     201(2) of the Americans with Disabilities Act of 1990 (42 
     U.S.C. 12131(2)), except that, with respect to any claims of 
     employment discrimination asserted by any covered employee, 
     the exclusive remedy shall be under section 101.
       (3) Definitions.--For purposes of the application of the 
     Americans with Disabilities Act of 1990 under this section, 
     the term ``public entity'' means any entity listed in 
     subsection (a). For purposes of this section, an office of 
     the Senate or an office of the House of Representatives 
     means, respectively, a unit of the Senate or the House of 
     Representatives that provides public services, within the 
     meaning of sections of the Americans with Disabilities Act of 
     1990 as applied by paragraph (1).
       (c) Available Relief.--The relief for a violation of 
     subsection (b) shall be such relief as would be appropriate 
     if awarded under section 203 or 503(c) of the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12133 or 12203(c)).
       (d) Available Procedures.--
       (1) Charge filed with general counsel.--A qualified 
     individual with a disability who alleges a violation of 
     subsection (b) by an entity listed in subsection (a) may file 
     a charge with the General Counsel. The General Counsel shall 
     investigate the charge.
       (2) Mediation.--If, upon investigation under paragraph (1), 
     the General Counsel believes that a violation of subsection 
     (b) may have occurred and that mediation may be helpful in 
     resolving the dispute, the General Counsel may request 
     mediation under section 302 between the charging individual 
     and the entity or entities responsible for causing or 
     remedying the alleged violation.
       (3) Complaint, hearing, board review.--If mediation under 
     paragraph (2) has not succeeded in resolving the dispute, and 
     if the General Counsel believes that a violation of 
     subsection (b) has occurred, the General Counsel may file 
     with the Office a complaint against the entity or entities. 
     The complaint shall be submitted to a hearing officer for 
     decision pursuant to section 303, subject to review by the 
     Board pursuant to section 304.
       (4) Judicial review.--The charging individual or the entity 
     or entities respondent to the complaint, if aggrieved by a 
     final decision of the Board under paragraph (3), may file a 
     petition for review in the United States Court of Appeals for 
     the Federal Circuit, pursuant to section 305.
       (5) Exclusive procedures.--No person may commence an 
     administrative or judicial proceeding to seek a remedy for 
     violation of the rights and protections afforded in this 
     section except as provided in this subsection. Only a 
     qualified individual with a disability who has filed a charge 
     with the General Counsel under this subsection may be granted 
     relief under this section.
       (e) Rules To Implement Section.--
       (1) In general.--Not later than January 3, 1996, the Board 
     shall, pursuant to section 204, issue rules necessary to 
     implement the rights and protections under this section.
       (2) Agency regulations.--The rules promulgated under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Attorney General and the Secretary of 
     Transportation to implement the statutory provisions referred 
     to in subsections (b) and (c) except to the extent that the 
     Board may determine, for good cause shown and stated together 
     with the rule, that a different rule would better serve the 
     purposes of such statutory provisions and of this Act.
       (f) Effective Dates.--Subsections (b), (c), and (d) shall 
     be effective on the effective date of the rules issued under 
     subsection (e) or on July 1, 1996, whichever is earlier.
       (g) Inspection; Report to Congress.--
       (1) Inspection.--On a regular basis, and at least once each 
     Congress, the General Counsel shall inspect the facilities of 
     Congress and of congressional instrumentalities listed in 
     subsection (a) to ensure compliance with subsection (b).
       (2) Report.--On the basis of these inspections, the General 
     Counsel shall, at least once every Congress, prepare and 
     submit a report to the Speaker of the House of 
     Representatives and the President pro tempore of the Senate 
     containing the results of the inspection, describing any 
     steps necessary to correct any violations of this section, 
     assessing any limitations in accessibility to and usability 
     by individuals with disabilities associated with each 
     violation, and the estimated cost and time needed for 
     abatement.
       (3) Details.--The Attorney General, the Secretary of 
     Transportation, and the Architectural and Transportation 
     Barriers Compliance Board may, on request of the Office, 
     detail to the Office such personnel as may be necessary to 
     advise and assist the Office in carrying out its duties under 
     this section.
       (h) Application of Americans With Disabilities Act of 1990 
     to the Provision of Public Services and Accommodations by the 
     General Accounting Office, the Government Printing Office, 
     and the Library of Congress.--Section 509 of the Americans 
     with Disabilities Act of 1990 (42 U.S.C. 12209), as amended 
     by section 101(d), is amended by adding the following new 
     paragraph:
       ``(6) Enforcement of rights to public services and 
     accommodations.--The remedies, procedures, and rights set 
     forth in section 717 of the Civil Rights Act of 1964 (42 
     U.S.C. 2000e-16) shall be available to any qualified person 
     with a disability who is a visitor, guest, or patron of an 
     instrumentality of Congress and who alleges a violation of 
     the rights and protections under sections 201 through 230, 
     302, and 303 of the Americans with Disabilities Act of 1990 
     (42 U.S.C. 12131-12150, 12182-83) that are made applicable by 
     this section, except that the authorities of the Equal 
     Employment Opportunity Commission shall be exercised by the 
     chief official of the instrumentality of the Congress.''.

     SEC. 109. RIGHTS AND PROTECTIONS UNDER THE OCCUPATIONAL 
                   SAFETY AND HEALTH ACT OF 1970; PROCEDURES FOR 
                   REMEDY OF VIOLATIONS.

       (a) Occupational Safety and Health Protections.--
       (1) In general.--Each employing office and each covered 
     employee (and representatives of such employee) shall comply 
     with provisions of section 5 of the Occupational Safety and 
     Health Act of 1970 (29 U.S.C. 654). The duties, rights, and 
     protections of sections 8, 9, and 11(c) of the Occupational 
     Safety and Health Act of 1970 (29 U.S.C. 657, 658 and 660(c)) 
     shall apply with respect to each employing office and each 
     covered employee (and representatives of such employee). For 
     purposes of the application under this section of the 
     Occupational Safety and Health Act of 1970, the term 
     ``employer'' as used in such Act or in this section means any 
     employing office and the term ``employee'' means any covered 
     employee.
       (2) Coverage.--For purposes of the application under this 
     section of the Occupational Safety and Health Act of 1970, 
     the term ``employer'' as used in such Act means an employing 
     office and the term ``employee'' means a covered employee. 
     For purposes of this section, the term ``employing office'' 
     includes the General Accounting Office and the Library of 
     Congress, and the term ``employee'' includes employees of the 
     General Accounting Office and the Library of Congress.
       (b) Available Remedies.--The remedies for a violation of 
     subsection (a) shall be such remedies, except penalties, as 
     would be appropriate if awarded under sections 9(a), 10(c), 
     and 11(c)(2) of the Occupational Safety and Health Act of 
     1970 (29 U.S.C. 658(a), 659(c), and 660(c)(2)).
       (c) Available Procedures.--
       (1) Inspections, investigations; authorities of the general 
     counsel.--For purposes of this section and in the manner 
     provided in this section, the General Counsel shall exercise 
     the authorities granted to the Secretary of Labor by 
     subsections (a) and (f) of section 8 of the Occupational 
     Safety and Health Act of 1970 (29 U.S.C. 657 (a) and (f)) to 
     inspect and investigate places of employment under the 
     jurisdiction of employers. Any employer, employee, or 
     representative of employees may submit written requests to 
     the General Counsel to conduct an inspection.
       (2) Citations, notices, notifications; authorities of the 
     general counsel.--
       (A) In general.--For purposes of this section and in the 
     manner provided in this section, the General Counsel shall 
     exercise the authorities granted to the Secretary of Labor in 
     sections 9 and 10 of the Occupational Safety and Health Act 
     of 1970 (29 U.S.C. 658 and 659), to issue, subject to the 
     procedures in subparagraph (B)--
     [[Page S134]]   (i) a citation or notice to any employer that 
     the General Counsel believes is in violation of subsection 
     (a); or
       (ii) a notification to any employer that the General 
     Counsel believes has failed to correct a violation for which 
     a citation has been issued within the period permitted for 
     its correction.
       (B) Appropriate employer.--A citation or notification may 
     not be issued to an employer that is neither responsible for 
     having caused nor responsible for correcting a violation. 
     Appropriation of insufficient funds shall not indicate a lack 
     of responsibility for having caused or for correcting a 
     violation. If correction of a violation requires action by 
     the Architect of the Capitol, the General Counsel may name 
     the Architect of the Capitol in the citation or notification 
     as an additional respondent.
       (3) Hearings, review; authorities of the board.--For 
     purposes of this section and except as otherwise provided in 
     this section, the Board shall exercise the authorities 
     granted to the Occupational Safety and Health Review 
     Commission in section 10(c) of the Occupational Safety and 
     Health Act of 1970 (29 U.S.C. 659(c)) and to the Secretary of 
     Labor (with respect to affirming or modifying abatement 
     requirements), to hear objections and requests with respect 
     to citations and notifications. The Board may refer disputed 
     matters under this paragraph to a hearing officer pursuant to 
     section 303, subject to review by the Board pursuant to 
     section 304.
       (4) Variance procedures.--For the purposes of this section 
     and except as otherwise provided by this section, the Board 
     shall exercise the authorities granted to the Secretary of 
     Labor in section 6(b)(6) of the Occupational Safety and 
     Health Act of 1970 (29 U.S.C. 655(b)(6)) to act on any 
     request by an employer applying for a temporary order 
     granting a variance from a standard. The Board may refer the 
     matter to a hearing officer pursuant to section 303, subject 
     to review by the Board pursuant to section 304.
       (5) Judicial review.--The General Counsel, or an employing 
     office that is a respondent to a complaint and is aggrieved 
     by a final decision of the Board under paragraph (3) or (4), 
     may file a petition for review with the United States Court 
     of Appeals for the Federal Circuit pursuant to section 305.
       (6) Procedures regarding claims of intimidation or 
     reprisal; authorities of general counsel.--
       (A) Charge filed with general counsel.--Any employee who 
     believes that he or she has been discharged or otherwise 
     discriminated against in violation of section 11(c) of the 
     Occupational Safety and Health Act of 1970 (29 U.S.C. 660(c)) 
     as made applicable by this section, may, within 30 days after 
     such violation occurs, file a charge with the Office alleging 
     such discrimination. The General Counsel shall investigate 
     the charge.
       (B) Mediation.--If, upon investigation under subparagraph 
     (A), the General Counsel believes that a violation of section 
     11(c) of the Occupational Safety and Health Act may have 
     occurred, the General Counsel may request mediation under 
     section 302 between the charging employee and the employer 
     that is alleged to have committed the violation.
       (C) Complaint, hearing, board review.--If mediation under 
     subparagraph (B) has not succeeded in resolving the dispute, 
     and if the General Counsel believes that a violation of 
     section 11(c) of the Occupational Safety and Health Act of 
     1970 has occurred, the General Counsel may file with the 
     Office a complaint against the employer. The complaint shall 
     be submitted to a hearing officer for decision pursuant to 
     section 303, subject to review by the Board pursuant to 
     section 304.
       (D) Petition for review.--The charging employee or any 
     employing office respondent to the complaint, if aggrieved by 
     a final decision of the Board under this paragraph, may file 
     a petition for review with the United States Court of Appeals 
     for the Federal Circuit, pursuant to section 305.
       (E) Relief.--Only a covered employee who has filed a charge 
     with the General Counsel under this paragraph may be granted 
     relief under this section.
       (7) Exclusive procedures.--No covered employee or 
     representative of such employees may commence any 
     administrative or judicial proceeding to seek a remedy for a 
     violation of the rights and protections afforded in this 
     section except as provided in this subsection.
       (d) Rules To Implement Section.--
       (1) In general.--Not later than July 1, 1996, the Board 
     shall, pursuant to section 204, issue rules necessary to 
     implement the rights and protections under this section.
       (2) Agency regulations.--The rules promulgated under 
     paragraph (1) shall be the same as standards and other 
     substantive regulations promulgated by the Secretary of Labor 
     to implement the statutory provisions referred to in 
     subsections (a) and (b) except to the extent that the Board 
     may determine, for good cause shown and stated together with 
     the rule, that a different rule would better serve the 
     purposes of such statutory provisions and of this Act.
       (e) Effective Dates.--Subsections (a) through (c) shall be 
     effective on the effective date of the rules issued under 
     subsection (d) or on January 3, 1997, whichever is earlier; 
     except that subsections (a) and (b) shall be effective with 
     respect to the General Accounting Office and the Library of 
     Congress 1 year after the completion of the study under 
     section 112.
       (f) Inspection; Report to Congress; Initial Study.--
       (1) Inspections.--On a regular basis, and at least once 
     each Congress, the General Counsel shall inspect the 
     facilities of the House of Representatives, the Senate, the 
     Architect of the Capitol, the Congressional Budget Office, 
     the Office of Technology Assessment, and the Office of 
     Congressional Fair Employment Practices to ensure compliance 
     with subsection (a).
       (2) Report.--On the basis of these inspections, the General 
     Counsel shall, at least once every Congress, prepare and 
     submit a report to the Speaker of the House of 
     Representatives and the President pro tempore of the Senate 
     containing the results of the inspection, describing any 
     steps necessary to correct any violations of this section, 
     assessing any risks to employee health and safety associated 
     with each violation, and the estimated cost and time needed 
     for abatement.
       (3) Details.--The Secretary of Labor may, on request of the 
     Office, detail to the Office such personnel as may be 
     necessary to advise and assist the Office in carrying out its 
     duties under this section.
       (4) Initial period for study and corrective action.--The 
     period from the date of enactment of this Act until January 
     3, 1997, shall be available to employing offices to identify 
     any violations of subsection (a), to determine the costs of 
     coming into compliance, and to take any necessary corrective 
     action to cure any violations. The Office shall assist 
     employing offices by arranging for inspections and other 
     technical assistance at their request. By July 1, 1996, the 
     General Counsel shall conduct a thorough inspection under 
     paragraph (1) and shall submit a report under paragraph (2).

     SEC. 110. APPLICATION OF FEDERAL SERVICE LABOR-MANAGEMENT 
                   RELATIONS STATUTE; PROCEDURES FOR 
                   IMPLEMENTATION AND ENFORCEMENT.

       (a) Labor-Management Rights.--Subject to subsection (d), 
     the rights, protections, and responsibilities established 
     under sections 7102, 7103, 7106, 7111 through 7117, and 7119 
     through 7122 of title 5, United States Code, shall apply, 
     pursuant to this section, to employing offices and to covered 
     employees and representatives of those employees. For 
     purposes of the application under this section of the 
     sections referred to in the preceding sentence, the term 
     ``agency'' shall be deemed to include an employing office.
       (b) Authorities and Procedures for Implementation and 
     Enforcement.--
       (1) General authorities of the board; petitions.--For 
     purposes of this section and except as otherwise provided in 
     this section, the Board shall exercise the authorities of the 
     Federal Labor Relations Authority under sections 7105, 7111 
     through 7113, 7115, 7117, 7118, and 7122 of title 5, United 
     States Code, and of the President under section 7103(b) of 
     title 5, United States Code. For purposes of this section, 
     any petition or other submission that, under chapter 71 of 
     title 5, United States Code, would be submitted to the 
     Federal Labor Relations Authority shall, if brought under 
     this section, be submitted to the Board. The Board may refer 
     any matter under this paragraph to a hearing officer for 
     decision pursuant to section 303, subject to review by the 
     Board pursuant to section 304. The Board may direct that the 
     General Counsel carry out the Board's investigative 
     authorities under this paragraph.
       (2) General authorities of the general counsel; charges of 
     unfair labor practice.--For purposes of this section and 
     except as otherwise provided in this section, the General 
     Counsel shall exercise the authorities of the General Counsel 
     of the Federal Labor Relations Authority under sections 7104 
     and 7118 of title 5, United States Code. For purposes of this 
     section, any charge or other submission that, under chapter 
     71 of title 5, United States Code, would be submitted to the 
     General Counsel of the Federal Labor Relations Authority 
     shall, if brought under this section, be submitted to the 
     General Counsel. If any person charges an employing office or 
     a labor organization with having engaged in or engaging in an 
     unfair labor practice, the General Counsel shall investigate 
     the charge and may issue a complaint. The complaint shall be 
     submitted to a hearing officer for decision pursuant to 
     section 303, subject to review by the Board pursuant to 
     section 304.
       (3) Exercise of impasses panel authority; requests.--For 
     purposes of this section and except as otherwise provided in 
     this section, the Board shall exercise the authorities of the 
     Federal Service Impasses Panel under section 7119 of title 5, 
     United States Code. For purposes of this section, any request 
     that, under chapter 71 of title 5, United States Code, would 
     be presented to the Federal Service Impasses Panel shall, if 
     made under this section, be presented to the Board. At the 
     request of the Board, the Director shall appoint a mediator 
     or mediators to perform the functions of the Federal Service 
     Impasses Panel under section 7119 of title 5, United States 
     Code.
       (4) Judicial review.--Except for matters referred to in 
     paragraphs (1) and (2) of section 7123(a) of title 5, United 
     States Code, the charging individual or the entity or 
     entities respondent to the complaint, if aggrieved by a final 
     decision of the Board pursuant to this section may file a 
     petition for judicial review in the United States Court of 
     Appeals for the Federal Circuit pursuant to section 305.
     [[Page S135]]   (5) Exclusive procedures.--No covered 
     employee or representative of such employees may commence an 
     administrative or judicial proceeding to seek a remedy for 
     any violation of or to enforce any rights and protections 
     provided by this section except as provided in this 
     subsection.
       (c) Rules To Implement Section.--
       (1) In general.--Not later than January 3, 1996, except 
     with respect to the offices listed in subsection (d)(2), the 
     Board shall pursuant to section 204, issue rules necessary to 
     implement the rights and protections under this section.
       (2) Agency regulations.--The rules promulgated under 
     paragraph (1) shall be the same as substantive regulations 
     promulgated by the Federal Labor Relations Authority to 
     implement the statutory provisions referred to in subsection 
     (a) except to the extent that as the Board may determine, for 
     good cause shown and stated together with the rule, that a 
     different rule would better serve the purposes of such 
     statutory provisions and of this Act.
       (d) Rulemaking Regarding Application to Certain Offices and 
     Instrumentalities of Congress.--
       (1) Rules required.--Not later than July 1, 1996, the Board 
     shall issue rules pursuant to section 204 on the manner and 
     extent to which the requirements and exemptions of chapter 71 
     of title 5, United States Code, should apply to covered 
     employees who are employed in the offices listed in paragraph 
     (2). In issuing such regulations, the Board shall, to the 
     greatest extent practicable, be consistent with the 
     provisions and purposes of chapter 71 of title 5, United 
     States Code, and regulations issued by the Federal Labor 
     Relations Authority under such chapter, and the purposes of 
     this Act, and shall also consider--
       (A) the possibility of any conflict of interest or 
     appearance of a conflict of interest;
       (B) national security; and
       (C) Congress's constitutional responsibilities.
       (2) Offices referred to.--The offices referred to in 
     paragraph (1) are--
       (A) the personal office of any Member of the House of 
     Representatives or of any Senator;
       (B) a standing, select, special, permanent, temporary, or 
     other committee of the Senate or House of Representatives, or 
     a joint committee of Congress;
       (C) the Office of the Vice President (as President of the 
     Senate), the Office of the President pro tempore of the 
     Senate, the Office of the Majority Leader of the Senate, the 
     Office of the Minority Leader of the Senate, the Office of 
     the Majority Whip of the Senate, the Office of the Minority 
     Whip of the Senate, the Conference of the Majority of the 
     Senate, the Conference of the Minority of the Senate, the 
     Office of the Secretary of the Conference of the Majority of 
     the Senate, the Office of the Secretary of the Conference of 
     the Minority of the Senate, the Office of the Secretary for 
     the Majority of the Senate, the Office of the Secretary for 
     the Minority of the Senate, the Majority Policy Committee of 
     the Senate, the Minority Policy Committee of the Senate, and 
     the following offices within the Office of the Secretary of 
     the Senate: Offices of the Parliamentarian, Bill Clerk, 
     Legislative Clerk, Journal Clerk, Executive Clerk, Enrolling 
     Clerk, and Official Reporter of Debate, Daily Digest, 
     Printing Services, Captioning Services, and Senate Chief 
     Counsel for Employment.
       (D) the office of the Speaker of the House of 
     Representatives, the Office of the Majority Leader of the 
     House of Representatives, the Office of the Minority Leader 
     of the House of Representatives, the Offices of the Chief 
     Deputy Majority Whips, the Offices of the Chief Deputy 
     Minority Whips and the following offices within the Office of 
     the Clerk of the House of Representatives: Offices of 
     Legislative Operations, Official Reporters of Debate, 
     Official Reporters to Committees, Printing Services, and 
     Legislative Information;
       (E) the Office of the Legislative Counsel of the Senate, 
     the Office of the Senate Legal Counsel, the Office of the 
     Legislative Counsel of the House of Representatives, the 
     Office of the General Counsel of the House of 
     Representatives, the Office of the Parliamentarian of the 
     House of Representatives;
       (F) the offices of any caucus or party organization; and
       (G) the Congressional Budget Office, the Office of 
     Technology Assessment, and the Office of Congressional Fair 
     Employment Practices.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), 
     subsections (a) and (b) shall be effective on the effective 
     date of the rules issued under subsection (c), or on July 1, 
     1996, whichever is earlier.
       (2) Certain offices.--With respect to the offices listed in 
     subsection (d)(2), to the covered employees of such offices, 
     and to representatives of such employees, subsections (a) and 
     (b) shall be effective on the effective date of rules issued 
     under subsection (d) and approved under section 204(d)(2).

     SEC. 111. APPLICATION OF OTHER LAWS TO CONGRESS.

       (A) Study and recommendations of board.--On December 31, 
     1996, and updated every 2 years thereafter, the Board shall 
     issue a report--
       (1) reviewing whether, and to what degree, provisions of 
     Federal law and regulations relating to--
       (A) the terms and conditions of employment (including 
     hiring, promotion and demotion, salary, wages, overtime 
     compensation, benefits, work assignments or reassignments, 
     termination, protection from discrimination in personnel 
     actions, health and safety of employees and family and 
     medical leave) of employees, and
       (B) discrimination in the provision of (including access 
     to) public services and accommodations,
     are applicable or inapplicable to officers and employees 
     within the legislative branch and to users of public services 
     and accommodations provided the legislative branch, and,
       (2) stating recommendations of the Board as to whether such 
     provisions should be made applicable to the legislative 
     branch or should be otherwise modified.
     Such recommendations shall be printed in the Congressional 
     Record, and such report shall be referred to the committees 
     of the House of Representatives and the Senate with 
     jurisdiction.
       (b) Reports of Congressional Committees.--Each report 
     accompanying a bill or joint resolution of a public character 
     reported by a committee of the House of Representatives or 
     the Senate (except the Committee on Appropriations and the 
     Committee on the Budget of either House) shall--
       (1) describe the manner in which the provisions of the bill 
     or joint resolution that apply to the Congress and to 
     congressional instrumentalities; or
       (2) in the case of a provision not applicable to the 
     Congress and to congressional instrumentalities, include a 
     statement of the reasons the provision does not apply.

     SEC. 112. STUDY AND RECOMMENDATIONS REGARDING GENERAL 
                   ACCOUNTING OFFICE, GOVERNMENT PRINTING OFFICE, 
                   AND LIBRARY OF CONGRESS.

       (a) In General.--The Board shall undertake a study of--
       (1) the application of the laws listed in subsection (b) 
     to--
       (A) the General Accounting Office;
       (B) the Government Printing Office;
       (C) the Library of Congress; and
       (D) any other entity in the legislative branch of the 
     Government not covered by all of the sections of this title; 
     and
       (2) the regulations and procedures used by the 
     instrumentalities and other entities referred to in paragraph 
     (1) to apply and enforce such laws to themselves and their 
     employees.
       (b) Applicable Statutes.--The study under this section 
     shall consider the application of the following laws:
       (1) Title VII of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e et seq.), and related provisions of section 2302 of 
     title 5, United States Code.
       (2) The Age Discrimination in Employment Act of 1967 (29 
     U.S.C. 621 et seq.), and related provisions of section 2302 
     of title 5, United States Code.
       (3) The Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.), and related provisions of section 2302 of 
     title 5, United States Code.
       (4) The Family and Medical Leave Act of 1993 (29 U.S.C. 
     2611 et seq.), and related provisions of sections 6381 
     through 6387 of title 5, United States Code.
       (5) The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 
     seq.), and related provisions of sections 5541 through 5550a 
     of title 5, United States Code.
       (6) The Occupational Safety and Health Act of 1970 (29 
     U.S.C. 651 et seq.), and related provisions of section 7902 
     of title 5, United States Code.
       (7) The Rehabilitation Act of 1973 (29 U.S.C. 501 et seq.).
       (8) Chapter 71 of title 5, United States Code.
       (9) The General Accounting Office Personnel Act of 1980 (31 
     U.S.C. subchapter III of chapter 7).
       (10) The Employee Polygraph Protection Act of 1988 (29 
     U.S.C. et seq.).
       (11) The Worker Adjustment and Retraining Notification Act 
     (29 U.S.C. 2101 et seq.).
       (12) Chapter 43 of title 38, United States Code (relating 
     to veterans' employment and reemployment).
       (c) Contents of Study and Recommendations.--The study under 
     this section shall evaluate whether the rights, protections, 
     and procedures applicable to the congressional 
     instrumentalities and other entities referred to in 
     subsection (a) and their employees are at least as 
     comprehensive and effective as those required by this title 
     and title III, and shall include recommendations for any 
     improvements in such regulations and procedures and for any 
     legislation.
       (d) Inspection of Facilities.--In preparation of the study 
     under this section, the General Counsel shall inspect the 
     facilities of the congressional instrumentalities and other 
     entities referred to in subsection (a) to determine the 
     extent of compliance with the requirements referred to in 
     paragraphs (3), (6), and (7) of subsection (b). The study 
     shall describe the results of the inspection, including any 
     steps necessary to correct any violations of these 
     requirements, and assessing any risks to employee health and 
     safety or any limitations in accessibility to and usability 
     by individuals with disabilities associated with each 
     violation, and the estimated cost and time needed for 
     abatement. 
      [[Page S136]] The Secretary of Labor, the Attorney General, 
     the Secretary of Transportation, and the Architectural and 
     Transportation Barriers Compliance Board may, on request of 
     the Office, detail to the Office such personnel as may be 
     necessary to advise and assist the Office in carrying out its 
     duties under this section.
       (e) Deadline and Delivery of Study.--Not later than July 1, 
     1996, the Board shall prepare and complete the study and 
     recommendations required under this section and shall submit 
     the study and recommendations to the head of each 
     instrumentality or other entity considered by the study, and 
     to the Speaker of the House of Representatives and President 
     pro tempore of the Senate for referral to the appropriate 
     committees of the House of Representatives and of the Senate.
     TITLE II--OFFICE OF CONGRESSIONAL FAIR EMPLOYMENT PRACTICES--
                      ESTABLISHMENT AND OPERATIONS

     SEC. 201. ESTABLISHMENT OF OFFICE OF CONGRESSIONAL FAIR 
                   EMPLOYMENT PRACTICES.

       There is hereby established, as an independent office 
     within the legislative branch of the Government, the Office 
     of Congressional Fair Employment Practices.

     SEC. 202. BOARD OF DIRECTORS.

       (a) In General.--There shall be a Board of Directors of the 
     Office (the ``Board''), to be composed of 5 members.
       (b) Appointment.--
       (1) Two members by leaders of house of representatives.--
     The Speaker of the House of Representatives shall appoint two 
     members, of whom--
       (A) one shall be appointed in accordance with the 
     recommendation of the Majority Leader in consultation with 
     the Minority Leader; and
       (B) one shall be appointed in accordance with the 
     recommendation of the Minority Leader in consultation with 
     the Majority Leader.
       (2) Two members by leaders of senate.--The President pro 
     tempore of the Senate shall appoint two members, of whom--
       (A) one shall be appointed in accordance with the 
     recommendation of the Majority Leader in consultation with 
     the Minority Leader; and
       (B) one shall be appointed in accordance with the 
     recommendation of the Minority Leader in consultation with 
     the Majority Leader.
       (3) Chair.--The Chair shall be appointed jointly by the 
     Speaker of the House of Representatives and the President pro 
     tempore of the Senate from among candidates jointly 
     recommended by the Majority Leaders and the Minority Leaders 
     of the House of Representatives and the Senate.
       (c) Qualifications.--
       (1) In general.--Selection and appointment of members shall 
     be without regard to political affiliation and solely on the 
     basis of fitness to perform the duties of the office.
       (2) Specific qualifications.--Members shall have training 
     or experience in the application of the rights, protections, 
     and remedies under one or more of the statutes made 
     applicable by sections 101 through 107.
       (3) Disqualifications.--No individual shall be eligible to 
     serve on the Board who--
       (A) is a current or former Member of the House of 
     Representatives or a Senator;
       (B) is, or has been within the 2 years prior to 
     appointment--
       (i) an elected or appointed officer of the House of 
     Representatives or the Senate;
       (ii) head of a congressional instrumentality referred to in 
     subparagraphs (C) through (F) of section 3(1) or paragraph 
     (1), (2), or (3) of section 110(a); or
       (iii) a covered employee or otherwise an employee of an 
     instrumentality or other entity of the legislative branch; or
       (C) during the period of service engages in, or is 
     otherwise employed in, lobbying of the Congress and who is 
     required under the Federal Regulation of Lobbying Act to 
     register with the Clerk of the House of Representatives or 
     the Secretary of the Senate.
       (d) Time for Original Board Appointments.--All members 
     shall be appointed to the Board pursuant to subsection (b) 
     not later than 120 days after the date of enactment of this 
     Act.
       (e) Appointments To Fill Vacancies on the Board.--Any 
     vacancy in the membership of the Board shall be filled in the 
     same manner as the original appointment for the vacant 
     position.
       (f) Terms of Office for Board Members.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), the term of appointment of each member of the Board 
     shall be 6 years. No member shall be appointed to more than 2 
     consecutive 6-year terms of office.
       (2) Terms of office for original board appointments.--
       (A) Two members through january 3, 1998.--The terms of the 
     members originally appointed pursuant to subsection (b)(1) 
     shall terminate at noon on January 3, 1998.
       (B) Two members through january 3, 2000.--The terms of the 
     members originally appointed pursuant to subsection (b)(2) 
     shall terminate at noon on January 3, 2000.
       (C) One member through january 3, 2002.--The term of the 
     Chair originally appointed shall terminate at noon on January 
     3, 2002.
       (3) Terms of office for mid-term appointments to the 
     board.--An individual appointed to fill a vacancy occurring 
     before the expiration of a term of office shall be appointed 
     for the remainder of the term. However, if the unexpired part 
     of a term is less than one year, the individual may be 
     appointed for a 6-year term plus the unexpired part of the 
     term.
       (4) Service after expiration of term.--A member may 
     continue to serve after the expiration of his or her term 
     until his successor has taken office, except that he or she 
     may not continue to serve for more than 1 year after the date 
     on which his or her term expired.
       (g) Removal of Board Members.--
       (1) In general.--The Speaker of the House of 
     Representatives and the President pro tempore of the Senate, 
     acting in accordance with the recommendation of any 3 of the 
     4 Majority Leaders and Minority Leaders of the two Houses of 
     Congress, may remove any member from the Board but only for--
       (A) disability that substantially prevents the member from 
     carrying out the duties of such a member;
       (B) incompetence;
       (C) neglect of duty;
       (D) malfeasance in office;
       (E) a felony or conduct involving moral turpitude; or
       (F) holding an office or employment or engaging in an 
     activity that disqualifies the individual from service as a 
     member of the Board under subsection (c)(3).
       (2) Statement of reasons for removal.--In removing any 
     member from the Board, the Speaker of the House of 
     Representatives and the President pro tempore of the Senate 
     shall state in writing to the member being removed the 
     specific reasons for the removal.
       (h) Responsibilities of Chair; Acting Chair.--The Chair 
     shall preside at all sessions of the Board and shall fulfill 
     the responsibilities of the Chair as specifically provided in 
     this Act. The Chair may designate any other member as Acting 
     Chair. During any period when the position of the Chair is 
     vacant, the other members shall, by majority vote, designate 
     any member as Acting Chair. The Acting Chair may act in the 
     place and stead of the Chair during his or her absence or 
     when the position of the Chair is vacant.
       (i) Meetings.--The Board shall meet at least once annually.
       (j) Quorum; Action by Majority Vote.--A quorum for the 
     transaction of business shall consist of at least 3 members 
     present. Each member, including the Chair, shall have one 
     vote. Actions of the Board shall be determined by a majority 
     vote of the members present. Any vacancy shall not affect the 
     power of the remaining members to fulfill the duties of the 
     Board, provided that a quorum is present. Nothing in this 
     subsection shall prohibit the Board from delegating the 
     authority of the Board to make an interlocutory decision to 
     one or more of the members of the Board.
       (k) Compensation of Members.--Each member of the Board 
     other than the Chair shall be compensated at a rate equal to 
     the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code, for each day 
     (including travel time) during which such member is engaged 
     in the performance of the duties of the Board. The rate of 
     pay may be prorated based on the portion of the day during 
     which the member is engaged in the performance of Board 
     duties. The Chair shall be compensated in the same manner at 
     a rate equal to the daily equivalent of the annual rate of 
     basic pay prescribed for level IV of the Executive Schedule 
     under section 5315 of title 5, United States Code.
       (l) Travel Expenses.--Each member of the Board of Directors 
     shall receive travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, for each day the member is engaged in the performance 
     of duties away from the home or regular place of business of 
     the member.
       (m) Congressional Oversight.--The Board and the Office 
     shall be subject to oversight by the Committee on Rules and 
     Administration and Committee on Governmental Affairs of the 
     Senate and the Committee on House Administration of the House 
     of Representatives. The Speaker of the House of 
     Representatives and the President pro tempore of the Senate 
     shall promptly refer to such committees copies of all general 
     notices of proposed rulemaking and final rules submitted 
     under section 204(d)(1) and any resolutions introduced with 
     respect to approval of such rules.

     SEC. 203. OFFICERS, STAFF, AND OTHER PERSONNEL.

       (a) Director.--
       (1) In general.--
       (A) In general.--The Chair, subject to the approval of the 
     Board, shall appoint and may remove a Director. Selection and 
     appointment of the Director shall be without regard to 
     political affiliation and solely on the basis of fitness to 
     perform the duties of the office.
       (B) Disqualification.--No person described in section 
     202(c)(3), other than a member, officer, or employee of an 
     office of fair employment practices or a personnel appeals 
     board, may be appointed Director.
       (2) Compensation.--The Chair may fix the compensation of 
     the Director. The rate of pay for the Director may not exceed 
     the annual rate of basic pay prescribed for level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code.
       (3) Duties.--The Director shall serve as the chief 
     operating officer of the Office. Except 
      [[Page S137]] as otherwise specified in this Act, the 
     Director shall carry out all of the responsibilities of the 
     Office under this Act.
       (b) Deputy Directors.--
       (1) In general.--The Chair, subject to the approval of the 
     Board, shall appoint and may remove a Deputy Director for the 
     Senate and a Deputy Director for the House of 
     Representatives. Selection and appointment of a Deputy 
     Director shall be without regard to political affiliation and 
     solely on the basis of fitness to perform the duties of the 
     office. The disqualifications in subsection (a)(1)(B) shall 
     apply to the appointment of a Deputy Director.
       (2) Compensation.--The Chair may fix the compensation of a 
     Deputy Director. The rate of pay for a Deputy Director may 
     not exceed 96 percent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (3) Duties.--The Deputy Director for the Senate shall be 
     responsible for the development of rules under section 
     204(b)(2)(B)(i), and shall assume such other responsibilities 
     as may be delegated by the Director. The Deputy Director for 
     the House of Representatives shall be responsible for the 
     development of rules under section 204(b)(2)(B)(ii), and 
     shall assume such other responsibilities as may be delegated 
     by the Director.
       (c) General Counsel.--
       (1) In general.--The Chair, subject to the approval of the 
     Board, shall appoint and may remove a General Counsel. 
     Selection and appointment of the General Counsel shall be 
     without regard to political affiliation and solely on the 
     basis of fitness to perform the duties of the Office. The 
     disqualifications in subsection (a)(1)(B) shall apply to the 
     appointment of a General Counsel.
       (2) Compensation.--The Chair may fix the compensation of 
     the General Counsel. The rate of pay for the General Counsel 
     may not exceed the annual rate of basic pay prescribed for 
     level V of the Executive Schedule under section 5316 of title 
     5, United States Code.
       (3) Duties.--The General Counsel shall--
       (A) exercise the authorities and perform the duties of the 
     General Counsel as specified in this Act; and
       (B) otherwise assist the Board and the Director in carrying 
     out their duties and powers.
       (4) Attorneys in the office of the general counsel.--The 
     General Counsel shall appoint, and fix the compensation of, 
     and may remove, such additional attorneys as may be necessary 
     to enable the General Counsel to perform his or her duties.
       (d) Other Staff.--The Director shall appoint, and fix the 
     compensation of, and may remove, such other additional staff, 
     including hearing officers, but not including attorneys 
     employed in the office of the General Counsel, as may be 
     necessary to enable the Office to perform its duties.
       (e) Detailed Personnel.--The Director may, with the prior 
     consent of the Government department or agency concerned, use 
     on a reimbursable or nonreimbursable basis the services of 
     personnel of any such department or agency, including the 
     services of members or personnel of the General Accounting 
     Office Personnel Appeals Board.
       (f) Consultants.--In carrying out the functions of the 
     Office, the Director may procure the temporary (not to exceed 
     1 year) or intermittent services of consultants.

     SEC. 204. RULEMAKING BY THE OFFICE.

       (a) Rules of the Office.--
       (1) In general.--Not later than 180 days after the 
     appointment of a quorum of the Board, the Board shall issue 
     final rules of organization, procedures, and practice (within 
     the meaning of section 553(b)(A) of title 5, United States 
     Code), including rules on the procedures of the Board and 
     rules of procedure and practice for proceedings before 
     hearing officers and before the Board. Such rules may also 
     specify authorities and duties of the Director, the General 
     Counsel, and other personnel of the Office, consistent with 
     the authorities and duties granted and imposed under this 
     Act.
       (2) Rulemaking procedure.--Rules under this subsection--
       (A) shall be issued in accordance with subsection (c); and
       (B) shall become effective immediately upon approval under 
     paragraph (3), except for rules of procedure and practice for 
     proceedings before hearing officers and before the Board, 
     which shall become effective 60 days after such approval.
       (3) Approval.--Rules under this subsection shall be subject 
     to approval by Congress by concurrent resolution, pursuant to 
     subsection (d).
       (b) Rules Other Than Rules of the Office.--
       (1) In general.--The Board shall adopt such rules other 
     than rules of the Office issued under subsection (a) as the 
     Board may determine are necessary.
       (2) Rulemaking procedure.--Rules under this subsection--
       (A) shall be issued in accordance with subsection (c);
       (B) shall consist of three separate bodies of rules, which 
     shall apply, respectively, to--
       (i) the Senate and employees of the Senate other than 
     employees referred to in clause (iii);
       (ii) the House of Representatives and employees of the 
     House of Representatives other than employees referred to in 
     clause (iii); and
       (iii) the Architect of the Capitol, the Congressional 
     Budget Office, the Office of Technology Assessment, the 
     Office, and employees of these congressional 
     instrumentalities; the Capitol Police and members of the 
     Capitol Police; and other work units and members of other 
     work units (other than joint committees of the Congress) that 
     include employees of the Senate and of the House of 
     Representatives under the same management; and
       (C) shall become effective not less than 60 days after the 
     rules are approved under paragraph (3), except as may be 
     otherwise provided by the Board for good cause found (within 
     the meaning of section 553(d)(3) of title 5, United States 
     Code) and published with the rule.
       (3) Approval.--Rules referred to in paragraph (2)(B)(i) may 
     be approved by the Senate by resolution or by the Congress by 
     joint resolution or statute. Rules referred to in paragraph 
     (2)(B)(ii) may be approved by the House of Representatives by 
     resolution or by the Congress by joint resolution or statute. 
     Rules referred to in paragraph (2)(B)(iii) may be approved by 
     Congress by concurrent resolution or by joint resolution or 
     statute. Rules approved by joint resolutions or statute shall 
     have the force and effect of law. Approval referred to in 
     this paragraph shall be pursuant to subsection (d).
       (c) Publication and Issuance.--
       (1) Rulemaking procedure.--The Board shall issue rules 
     described in subsections (a) and (b) in accordance with the 
     principles and procedures set forth in section 553 of title 
     5, United States Code. The Board shall publish a general 
     notice of proposed rulemaking under section 553(b) of title 
     5, United States Code, but, instead of publication of a 
     general notice of proposed rulemaking in the Federal 
     Register, the Board shall transmit such notice to the Speaker 
     of the House of Representatives and the President pro tempore 
     of the Senate for publication in the Congressional Record on 
     the first day on which both Houses are in session following 
     such transmittal. Prior to issuing rules, the Board shall 
     provide a comment period of at least 30 days after 
     publication of a general notice of proposed rulemaking. Upon 
     issuing final rules, the Board shall transmit notice of such 
     action together with a copy of such rules to the Speaker of 
     the House of Representatives and the President pro tempore of 
     the Senate for publication in the Congressional Record on the 
     first day on which both Houses are in session following such 
     transmittal. Rules shall be considered issued by the Board as 
     of the date on which they are published in the Congressional 
     Record.
       (2) Recommendation as to method of approval.--The Board 
     shall include a recommendation in the general notice of 
     proposed rulemaking and in the final rules as to whether the 
     rules should be approved by resolution of the Senate, by 
     resolution of the House of Representatives, by concurrent 
     resolution, by joint resolution, or by statute.
       (d) Approval of Rules.--
       (1) One-house resolution or concurrent resolution.--In the 
     case of a concurrent resolution referred to in subsection 
     (a)(3), or a resolution of the House of Representatives, a 
     resolution of the Senate, or a concurrent resolution referred 
     to in subsection (b)(3), the matter after the resolving 
     clause shall be the following: ``The following rules issued 
     by the Office of Congressional Fair Employment Practices on 
     ____ are hereby approved:'' (the blank spaces being 
     appropriately filled in, and the text of the rules being set 
     forth).
       (2) Joint resolution or statute.--In the case of a joint 
     resolution referred to in subsection (b)(3), the matter after 
     the resolving clause shall be the following, and, in the case 
     of a statute referred to in subsection (b)(3), the matter 
     after the enacting clause shall include the following: ``The 
     following rules issued by the Office of Congressional Fair 
     Employment Practices on ____ are hereby approved and shall 
     have the force and effect of law:'' (the blank spaces being 
     appropriately filled in, and the text of the rules being set 
     forth).
       (e) Referral.--Upon receipt of a notice of issuance of 
     final rules under subsection (c), the Speaker of the House of 
     Representatives and the President pro tempore of the Senate 
     shall refer such notice, together with a copy of such rules, 
     to the appropriate committee or committees of the House of 
     Representatives and of the Senate. The purpose of the 
     referral shall be to consider whether such rules should be 
     approved, and, if so, whether such approval should be by 
     resolution of the House of Representatives or of the Senate, 
     by concurrent resolution, by joint resolution, or by statute.
       (f) Joint Referral and Discharge in the Senate.--The 
     President pro tempore of the Senate may refer the notice of 
     issuance of final rules, or any resolution of approval of 
     final rules, to one committee or jointly to more than one 
     committee. If a committee of the Senate acts to report a 
     jointly referred measure, any other committee of the Senate 
     must act within 30 calendar days of continuous session, or be 
     automatically discharged.
       (g) Amendment of Rules.--Rules may be amended in the same 
     manner as is described in this section for the adoption of 
     rules, except that the Board may, in its discretion, dispense 
     with publication of a general notice of proposed rulemaking 
     of minor, technical, or urgent amendments that satisfy the 
     criteria for dispensing with publication of such notice 
     pursuant to section 553(b)(3)(B) of title 5, United States 
     Code.
       (h) Right To Petition for Rulemaking.--Any interested party 
     may petition to the 
      [[Page S138]] Board for the issuance, amendment, or repeal 
     of a rule.
       (i) Application of Executive Agency Regulations by 
     Reference.--The Board may, by specific reference in rules 
     issued under this section, apply regulations issued by any 
     Executive agency (within the meaning of section 105 of title 
     5, United States Code).
       (j) Consultation.--The Director and the Board--
       (1) shall consult, with regard to the development and 
     issuance of rules, with--
       (A) the Chairman of the Administrative Conference of the 
     United States;
       (B) the Secretary of Labor;
       (C) the Federal Labor Relations Authority; and
       (D) the Director of the Office of Personnel Management; and
       (2) may consult with any other persons with whom 
     consultation, in the opinion of the Board or the Director, 
     may be helpful.

     SEC. 205. INFORMATION PROGRAM.

       The Board shall conduct an information program to inform 
     Members of the House of Representatives, Senators, elected 
     officers of either House, heads of employing offices, and 
     covered employees about the provisions made applicable to 
     them under this Act.

     SEC. 206. DATA COLLECTION AND REPORT.

       The Director shall compile and annually publish statistics 
     with respect to contacts and complaints filed with the Office 
     under this Act. Such statistics shall include the total 
     numbers of contacts and complaints, and a breakdown 
     regarding--
       (1) the kinds of allegations made in contacts with the 
     Office and complaints filed with the Office;
       (2) the time required by the Office to conduct proceedings 
     and resolve various types of matters;
       (3) the number of complaints resolved by settlement, by 
     decision under section 303, or by withdrawal of the 
     complaint; and
       (4) for each category of allegation, the amounts of 
     monetary compensation granted in settlements and awards.

     SEC. 207. EXPENSES OF THE OFFICE.

       (a) Authorization of Appropriations.--Beginning in fiscal 
     year 1995, and for each fiscal year thereafter, there are 
     authorized to be appropriated for the expenses of the Office 
     such sums as may be necessary to carry out the functions of 
     the Office. Until sums are first appropriated pursuant to the 
     preceding sentence, but for a period not exceeding 12 months 
     following the date of enactment of this Act, the expenses of 
     the Office shall be paid from the contingent fund of the 
     Senate, of which 50 percent shall be reimbursed from the 
     contingent fund of the House, upon vouchers approved by the 
     Director.
       (b) Witness Fees and Allowances.--Except for covered 
     employees, witnesses before a hearing officer or the Board in 
     any proceeding under title I other than rulemaking shall be 
     paid the same fee and mileage allowances as are paid 
     subpoenaed witnesses in the courts of the United States. 
     Covered employees who are summoned, or are assigned by their 
     employer, to testify in their official capacity or to produce 
     official records before a mediator, hearing officer, or the 
     Board in any proceeding under this Act shall be entitled to 
     travel expenses under subchapter I and section 5751 of 
     chapter 57 of title 5, United States Code.
                 TITLE III--ADMINISTRATIVE AND JUDICIAL
                     DISPUTE-RESOLUTION PROCEDURES

     SEC. 301. COUNSELING.

       (a) Initiation.--Any employee referred to in section 107(1) 
     may, within the time specified in section 307, request 
     counseling.
       (b) Purpose.--The Office shall provide the employee with 
     all relevant information with respect to the rights and 
     remedies as provided under this Act and shall provide an 
     opportunity for discussion, evaluation, and guidance to 
     assist the employee in evaluating and resolving the matter.
       (c) Period of Counseling.--The period for counseling shall 
     begin on the date on which the request for counseling is 
     received and shall be 30 days unless the employee and the 
     Office agree to reduce the period.
       (d) Notification of End of Counseling Period.--The Office 
     shall notify the employee in writing when the counseling 
     period has ended.
       (e) Employees of the Architect of the Capitol and Capitol 
     Police.--In the case of an employee of the Architect of the 
     Capitol or an employee who is a member of the Capitol Police, 
     the Director may refer the employee to the Architect of the 
     Capitol or the Capitol Police Board for resolution of the 
     employee's grievance through internal grievance procedures of 
     the Architect of the Capitol or the Capitol Police Board for 
     a specific period of time, which shall not count against the 
     time available for counseling or mediation under this Act.

     SEC. 302. MEDIATION.

       (a) Applicability.--Except as otherwise expressly provided 
     in this Act, the provisions of this section shall govern all 
     mediation conducted by the Office pursuant to this Act.
       (b) Initiation.--Not later than 15 days after the Office 
     notifies an employee of the end of the counseling period 
     under section 301(d), the employee may file a request for 
     mediation with the Office. Mediation may also be initiated 
     pursuant to sections 108(d)(2) and 109(c)(5).
       (c) Mediation Process.--The Director shall specify one or 
     more individuals to mediate any dispute. In identifying 
     individuals to mediate, the Director shall consider 
     individuals who are recommended to the Director by the 
     Federal Mediation and Conciliation Service, the 
     Administrative Conference of the United States, or other 
     appropriate organizations.
       (d) Mediation Period.--
       (1) In general.--The mediation period shall be 30 days, 
     beginning on the date the request for mediation is received 
     by the Office.
       (2) Extension.--The mediation period may be extended for 
     additional periods at the joint request of the employee and 
     the employing office.
       (e) Notification of End of Mediation Period.--The Office 
     shall notify the employee and the head of the employing 
     office in writing when the mediation period has ended.
       (f) Independence of Mediation Process.--No individual 
     appointed by the Director to mediate or to be a factfinder in 
     aid of the mediator may conduct or aid in the hearing 
     conducted under section 303 with respect to the same matter 
     or shall be subject to subpoena or any other compulsory 
     process with respect to the same matter.

     SEC. 303. COMPLAINT AND HEARING.

       (a) Applicability.--Except as otherwise expressly provided 
     in this Act, the provisions of this section shall govern all 
     hearings conducted by a hearing officer pursuant to this Act.
       (b) Complaint.--Any complaint shall be filed with the 
     Office against the employing office. Any complaint required 
     by this Act to be preceded by counseling and mediation may 
     not be filed unless the employee has made a timely request 
     for counseling and has completed the procedures set forth in 
     sections 301 and 302.
       (c) Hearing Officer.--Upon the filing of a complaint, the 
     Director shall appoint an independent hearing officer to 
     consider the complaint and render a decision. No Member of 
     the House of Representatives, Senator, officer of either the 
     House of Representatives or the Senate, head of an employing 
     office, member of the Board, or covered employee may be 
     appointed to be a hearing officer under this Act. The 
     Director shall develop master lists, composed of members of 
     the bar of a State or the District of Columbia and retired 
     judges of the United States courts, experienced in 
     adjudicating and arbitrating the kinds of personnel and other 
     matters for which hearings may be held under this Act, and 
     individuals expert in technical matters relating to 
     accessibility and usability by persons with disabilities or 
     technical matters relating to occupational safety and health, 
     after considering candidates recommended to the Director by 
     the Federal Mediation and Conciliation Service, the 
     Administrative Conference of the United States, or 
     organizations composed primarily of individuals experienced 
     in adjudicating or arbitrating such matters. The Director 
     shall select hearing officers on a rotational or random basis 
     from these lists. Nothing in this section shall prevent the 
     appointment of hearing officers as full-time employees of the 
     Office, or the selection of hearing officers on the basis of 
     specialized expertise needed for particular matters.
       (d) Hearing.--Unless a complaint is dismissed prior to 
     hearing, a hearing shall be conducted--
       (1) on the record by the hearing officer;
       (2) as expeditiously as practical, commencing not later 
     than 90 days after the filing of the complaint; and
       (3) except as specifically provided in this Act and to the 
     greatest extent practicable, in accordance with the 
     principles and procedures set forth in sections 554 through 
     557 of title 5, United States Code.
       (e) Discovery.--Reasonable prehearing discovery may be 
     permitted at the discretion of the hearing officer.
       (f) Subpoenas.--
       (1) In general.--At the request of a party, a hearing 
     officer may issue subpoenas for the attendance of witnesses 
     and for the production of correspondence, books, papers, 
     documents, and other records. The attendance of witnesses and 
     the production of records may be required from any place 
     within the United States. Subpoenas shall be served in the 
     manner provided under rule 45(b) of the Federal Rules of 
     Civil Procedure.
       (2) Objections.--If a person refuses, on the basis of 
     relevance, privilege, or other objection, to testify in 
     response to a question or to produce records in connection 
     with a proceeding before a hearing officer, the hearing 
     officer shall rule on the objection. At the request of the 
     witness or any party, the hearing officer shall (or on the 
     hearing officer's own initiative, the hearing officer may) 
     refer the ruling to the Board for review.
       (3) Enforcement.--
       (A) In general.--If a person fails to comply with a 
     subpoena, the Board may authorize the General Counsel to 
     apply to an appropriate United States district court for an 
     order requiring that person to appear before the hearing 
     officer to give testimony or produce records. The application 
     may be made within the judicial district where the hearing is 
     conducted or where that person is found, resides, or 
     transacts business. Any failure to obey a lawful order of the 
     district court issued pursuant to this section may be held by 
     such court to be a civil contempt thereof.
       (B) Service of process.--Process in an action or contempt 
     proceeding pursuant to subparagraph (A) may be served in any 
     judicial district in which the person refusing or failing to 
     comply, or threatening to refuse or 
      [[Page S139]] not to comply, resides, transacts business, or 
     may be found, and subpoenas for witnesses who are required to 
     attend such proceedings may run into any other district.
       (g) Decision.--The hearing officer shall issue a written 
     decision as expeditiously as possible, but in no case more 
     than 60 days after the conclusion of the hearing. The written 
     decision shall be transmitted by the Office to the parties. 
     The decision shall state the issues raised in the complaint, 
     describe the evidence in the record, contain findings of fact 
     and conclusions of law, contain a determination of whether a 
     violation has occurred, and order such remedies as are 
     appropriate pursuant to title I. The decision shall be 
     entered in the records of the Office as a final decision of 
     the hearing officer.
       (h) Precedents.--A hearing officer who conducts a hearing 
     under this section shall be guided by judicial decisions 
     under the statutes made applicable by title I and by Board 
     decisions under this Act.

     SEC. 304. APPEAL TO THE BOARD.

       (a) In General.--In any case in which a final decision by a 
     hearing officer is subject to review by the Board, the party 
     seeking such review shall file a petition for review not 
     later than 30 days after notice of the entry of the decision 
     in the records of the Office under section 303(g).
       (b) Parties' Opportunity To Submit Argument.--The parties 
     shall have a reasonable opportunity to be heard, through 
     written submission and, in the discretion of the Board, 
     through oral argument.
       (c) Standard of Review.--The Board shall set aside a 
     decision of a hearing officer if the Board determines that 
     the decision was--
       (1) arbitrary, capricious, an abuse of discretion, or 
     otherwise not consistent with law;
       (2) not made consistent with required procedures; or
       (3) unsupported by substantial evidence.
       (d) Record.--In making determinations under subsection (c), 
     the Board shall review the whole record, or those parts of it 
     cited by a party, and due account shall be taken of the rule 
     of prejudicial error. The record on review shall include the 
     record before the hearing officer and the decision of the 
     hearing officer.
       (e) Decision.--The Board shall issue a written decision 
     setting forth the reasons for its decision. The decision may 
     affirm, reverse, or remand to the hearing officer for further 
     proceedings. A decision that does not require further 
     proceedings before a hearing officer shall be entered in the 
     records of the Office as a final decision.

     SEC. 305. JUDICIAL REVIEW OF A FINAL DECISION AND 
                   ENFORCEMENT.

       (a) Jurisdiction.--
       (1) Judicial review.--This section applies to petitions 
     under section 107(5), 108(d)(4), 109(c)(5), 109(c)(6), or 
     110(b)(4) for judicial review of a final decision of the 
     Board in the United States Court of Appeals for the Federal 
     Circuit, which shall have exclusive jurisdiction to set 
     aside, suspend (in whole or in part), to determine the 
     validity of, or otherwise review the decision of the Board.
       (2) Enforcement.--The Court of Appeals for The Federal 
     Circuit shall have jurisdiction over any petition of the 
     General Counsel, filed in the name of the Office and at the 
     direction of the Board, to enforce a final decision under 
     section 303 or 304 with respect to a violation of sections 
     101 through 111.
       (b) Procedures.--
       (1) Petition.--The petition for review shall be filed, 
     pursuant to Rule 15 of the Federal Rules of Appellate 
     Procedure, not later than 90 days after the entry in the 
     Office of a final decision under section 304(e). Such 
     petition shall be subject to Rules 15 through 20 of the 
     Federal Rules of Appellate Procedure, relating to review of 
     administrative orders and the Office shall be the ``agency'' 
     as that term is used in such rules. The petitioner shall 
     attach to the petition as an exhibit a copy of the final 
     decision of the Office entered under section 304(e).
       (2) Respondents.--In any appeal under this section, any 
     party before the Board may be named respondent by filing a 
     notice of election with the Court within 30 days after the 
     petition was served, and the Office shall also be named 
     respondent.
       (3) Intervention.--In any action under this section with 
     respect to an employing office or other office of the Senate 
     or a joint committee of the Congress, the Senate shall be 
     entitled to intervene as of right; and, in any action under 
     this section with respect to an employing office or other 
     office of the House of Representatives or a joint committee 
     of the Congress, the House of Representatives shall be 
     entitled to intervene as of right. Any party that 
     participated in the proceedings before the Board and that was 
     not made respondent may intervene as of right.
       (c) Standard of Review.--To the extent necessary to 
     decision and when presented, the court shall decide all 
     relevant questions of law and interpret constitutional and 
     statutory provisions. The court shall set aside a final 
     decision of the Board under section 304 if it determines that 
     the decision was--
       (1) arbitrary, capricious, an abuse of discretion, or 
     otherwise not consistent with law;
       (2) not made consistent with required procedures; or
       (3) unsupported by substantial evidence.
       (d) Record.--In making determinations under subsection (d), 
     the court shall review the whole record, or those parts of it 
     cited by a party, and due account shall be taken of the rule 
     of prejudicial error. The record on review shall include the 
     record before the Board and the decision of the Board.

     SEC. 306. CIVIL ACTIONS.

       (a) In General.--This section governs all civil actions 
     commenced pursuant to section 107(3)(B).
       (b) Parties.--In any such action the defendant shall be the 
     employing office alleged to have committed the violation.
       (c) Jury Trial.--Any party may demand a jury trial where a 
     jury trial would be available in an action against a private 
     defendant under the relevant statute made applicable by this 
     Act. In any case in which a violation of section 101 is 
     alleged, the court shall not inform the jury of the maximum 
     amount of compensatory damages available under section 
     101(b)(1).
       (d) Intervention of Right.--In any action under this 
     section with respect to an employing office or other office 
     of the Senate, the Senate shall be entitled to intervene as 
     of right; and, in any action under this section with respect 
     to an employing office or other office of the House of 
     Representatives, the House of Representatives shall be 
     entitled as of right.

     SEC. 307. TIME LIMITATIONS.

       (a) Counseling Requests.--A request for counseling shall be 
     made not later than--
       (1) 180 days after the date of the alleged violation under 
     provisions of sections 101, 103, 104, 105, or 106 for which 
     the counseling is requested; or
       (2) 2 years after the date of the alleged violation under 
     section 102 for which the counseling is requested, or 3 years 
     after an alleged willful violation under section 102.
       (b) Charges Filed With the General Counsel.--Any charge of 
     a violation of section 108(d) or 109(c)(6) must be filed with 
     the General Counsel in writing by no later than 180 days 
     after the alleged violation.

     SEC. 308. SETTLEMENT OF COMPLAINTS.

       Any settlement entered into by the parties after a 
     complaint is filed under section 303 or 305 shall be in 
     writing and, in the case of a complaint filed under section 
     303, not become effective unless it is approved by the 
     Director. Nothing in this Act shall affect the power of the 
     Senate and the House of Representatives, respectively, to 
     establish rules governing the process by which a settlement 
     may be entered into by such House or by any employing office 
     of such House.

     SEC. 309. CONFIDENTIALITY.

       (a) Counseling.--All counseling conducted under this Act 
     shall be strictly confidential, except that the Office and 
     the employee may agree to notify the head of the employing 
     office of the allegations.
       (b) Mediation.--All mediation conducted under this Act 
     shall be strictly confidential.
       (c) Hearings.--Subject to the provisions of subsections 
     (d), (e), and (f) the hearings, deliberations, and decisions 
     of hearing officers and of the Board and of its officers and 
     employees on complaints, charges, proposed citations, and 
     other pleadings under this Act shall be strictly 
     confidential.
       (d) Release of Records for Judicial Review and Enforcement 
     of Subpoenas.--The complete record of the proceedings before 
     the hearing officer and the Board, including their decisions, 
     may be made public for the purpose of judicial review under 
     section 305. As much of the record of the proceedings before 
     the hearing officer and the Board as may be necessary for the 
     purpose of enforcement of a subpoena under section 303(f) may 
     be made public for such purpose.
       (e) Release of Records for Fairness to Parties.--Upon the 
     application of any party, the Board may disclose the final 
     decision of a hearing officer or of the Board upon a showing 
     of good cause and fairness to all parties to the proceeding.

     SEC. 310. DISCLOSURE TO COMMITTEES OF CONGRESS.

       (a) The Board--
       (1) may, at its discretion, provide to the Committee on 
     Standards of Official Conduct of the House of Representatives 
     or the Select Committee on Ethics of the Senate; and
       (2) shall, at the request of either of such committees;
     provide to such committee the record of a hearing and the 
     decision of the hearing officer, and the record of 
     consideration and the decision of the Board on appeal, after 
     completion of procedures described in sections 303 and 304.
       (b) All members and staff of the Committee on Standards of 
     Official Conduct of the House of Representatives and of the 
     Select Committee on Ethics of the Senate shall keep all 
     records and decisions provided under subsection (a) strictly 
     confidentially unless and until such records and decisions 
     are final made public by the Board. Any violation of this 
     subsection shall be a violation of the rules of the House of 
     Representatives or of the Senate.

     SEC. 311. REPRESENTATION.

       (a) Complainant.--A covered employee or other complainant 
     is entitled to be assisted by counsel or other representative 
     at any stage of any proceeding administered by the Office, 
     including the proceedings under sections 301, 302, 303, and 
     304.
       (b) Employing Offices of the Senate.--The Senate Chief 
     Counsel for Employment may represent any employing office of 
     the Senate, with the consent of the employing office, in any 
     administrative and judicial proceeding under this Act.
                   TITLE IV--MISCELLANEOUS PROVISIONS
     SEC. 401. EXERCISE OF RULEMAKING POWERS.

       The provisions of sections 204 (e) and (f), 311(b), 401, 
     and 408 are enacted--
     [[Page S140]]   (1) as an exercise of the rulemaking power of 
     the House of Representatives and the Senate, respectively, 
     and as such they shall be considered as part of the rules of 
     such House, respectively, and such rules shall supersede 
     other rules only to the extent that they are inconsistent 
     therewith; and
       (2) with full recognition of the constitutional right of 
     either House to change such rules (so far as relating to such 
     House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of each House.

     SEC. 402. SETTLEMENT AND AWARDS RESERVES; AUTHORIZATION OF 
                   APPROPRIATIONS.

       (a) For the House of Representatives.--
       (1) Establishment of account.--There is established in the 
     Contingent Fund of the House of Representatives a 
     ``Settlements and Awards Reserve'' appropriation account--
       (A) into which shall be deposited appropriated funds and 
     amounts transferred by the Clerk of the House of 
     Representatives from funds available to the Clerk for 
     disbursement by the Clerk; and
       (B) that shall be available as provided in paragraph (2).
       (2) Payments.--The appropriation account established by 
     paragraph (1) shall be available for the payment of awards 
     under sections 303 through 306 and agreements under section 
     308.
       (b) For the Senate.--
       (1) Establishment of account.--There is established in the 
     Contingent Fund of the Senate a ``Settlements and Awards 
     Reserve'' appropriation account--
       (A) into which shall be deposited appropriated funds and 
     amounts transferred by the Secretary of the Senate from funds 
     available to the Secretary for disbursement by the Secretary; 
     and
       (B) that shall be available as provided in paragraph (2).
       (2) Payments.--The appropriation account established by 
     paragraph (1) shall be available for the payment of awards 
     under sections 303 through 306 and agreements under section 
     308.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary for the 
     purposes of subsections (a)(2) and (b)(2), and otherwise for 
     the purposes of payment of awards under sections 303 through 
     306 and agreements under section 308. No amounts shall be 
     paid for awards or agreements under this Act out of the 
     Claims and Judgment Fund of the Treasury.

     SEC. 403. OTHER JUDICIAL REVIEW PROHIBITED.

       Except in proceedings expressly authorized by sections 305 
     and 306, the compliance or noncompliance with the provisions 
     of this Act and any action taken pursuant to this Act shall 
     not be subject to judicial review.

     SEC. 404. PRIVILEGES AND IMMUNITIES.

       (a) In General.--The authorization to bring judicial 
     actions under sections 305 and 306 shall not constitute a 
     waiver of sovereign immunity for any other purpose, or of the 
     privileges of any Senator or Member of the House of 
     Representatives under article I, section 6, clause 1, of the 
     Constitution, or a waiver of any power of either the Senate 
     or the House of Representatives under the Constitution or 
     under the rules of such House relating to records and 
     information within the jurisdiction of such House.

     SEC. 405. SEVERABILITY.

       If any provision of this Act or the application of such 
     provision to any person or circumstance is held to be 
     invalid, the remainder of this Act and the application of the 
     provisions of such to any person or circumstance shall not be 
     affected thereby.

     SEC. 406. POLITICAL AFFILIATION AND PLACE OF RESIDENCE.

       (a) In General.--It shall not be a violation of any 
     provision of section 101 to consider the--
       (1) party affiliation;
       (2) domicile; or
       (3) political compatibility with the employing office;

     of an employee referred to in subsection (b) with respect to 
     employment decisions.
       (b) Definition.--For purposes of subsection (a), the term 
     ``employee'' means--
       (1) an employee on the staff of the leadership of the House 
     of Representatives or the leadership of the Senate;
       (2) an employee on the staff of a committee or subcommittee 
     of--
       (A) the House of Representatives;
       (B) the Senate; or
       (C) a joint committee of the Congress;
       (3) an employee on the staff of a Member of the House of 
     Representatives or on the staff of a Senator;
       (4) an officer of the House of Representatives or the 
     Senate or a congressional employee who is elected by the 
     House of Representatives or Senate or is appointed by a 
     Member of the House of Representatives or by a Senator (in 
     addition an employee described in paragraph (1), (2), or 
     (3)); or
       (5) an applicant for a position that is to be occupied by 
     an individual described in any of paragraphs (1) through (4).

     SEC. 407. NONDISCRIMINATION RULES OF THE HOUSE AND SENATE.

       The Select Committee on Ethics of the Senate and the 
     Committee on Standards of Official Conduct of the House of 
     Representatives retain full power, in accordance with the 
     authority provided to them by the Senate and the House, with 
     respect to the discipline of Members, officers, and employees 
     for violating rules of the Senate and the House on 
     nondiscrimination in employment.

     SEC. 408. EXPEDITED REVIEW OF CERTAIN APPEALS.

       (a) In General.--An appeal may be taken directly to the 
     Supreme Court of the United States from any interlocutory or 
     final judgment, decree, or order of a court upon the 
     constitutionality of any provision of this Act.
       (b) Jurisdiction.--The Supreme Court shall, if it has not 
     previously ruled on the question, accept jurisdiction over 
     the appeal referred to in paragraph (1), advance the appeal 
     on the docket and expedite the appeal to the greatest extent 
     possible.

     SEC. 409. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Civil Rights Remedies.--
       (1) Sections 301 and 302 of the Government Employee Rights 
     Act of 1991 (2 U.S.C. 1201 and 1202) are amended to read as 
     follows:

     ``SEC. 301. GOVERNMENT EMPLOYEE RIGHTS ACT OF 1991.

       ``(a) Short Title.--This title may be cited as the 
     `Government Employee Rights Act of 1991'.
       ``(b) Purpose.--The purpose of this title is to provide 
     procedures to protect the rights of certain government 
     employees, with respect to their public employment, to be 
     free of discrimination on the basis of race, color, religion, 
     sex, national origin, age, or disability.
       ``(c) Definition.--For purposes of this title, the term 
     `violation' means a practice that violates section 302(a) of 
     this title.

     ``SEC. 302. DISCRIMINATORY PRACTICES PROHIBITED.

       ``(a) Practices.--All personnel actions affecting the 
     appointees described in section 303(a)(1) or the individuals 
     described in section 304(a) shall be made free from any 
     discrimination based on--
       ``(1) race, color, religion, sex, or national origin, 
     within the meaning of section 717 of the Civil Rights Act of 
     1964 (42 U.S.C. 2000e-16);
       ``(2) age, within the meaning of section 15 of the Age 
     Discrimination in Employment Act of 1967 (29 U.S.C. 633a); or
       ``(3) handicap or disability, within the meaning of section 
     501 of the Rehabilitation Act of 1973 (29 U.S.C. 791) and 
     sections 102 through 104 of the Americans with Disabilities 
     Act of 1990 (42 U.S.C. 12112-14).
       ``(b) Remedies.--The remedies referred to in sections 
     303(a)(1) and 304(a)--
       ``(1) may include, in the case of a determination that a 
     violation of subsection (a)(1) has occurred, such remedies as 
     would be appropriate if awarded under sections 706(g), 
     706(k), and 717(d) of the Civil Rights Act of 1964 (42 U.S.C. 
     2000e-5(g), 2000e-5(k), 2000e-16(d)), and such compensatory 
     damages (not exceeding, for each complaining party, and 
     irrespective of the size of the employing office or agency 
     involved, the maximum amount available under section 
     1977A(b)(3)(D) of the Revised Statutes (42 U.S.C. 
     1981a(b)(3)(D)) as would be appropriate if awarded under 
     section 1977 and sections 1977(A) (a) and (b)(2) of the 
     Revised Statutes (42 U.S.C. 1981 and 1981a (a) and (b)(2));
       ``(2) may include, in the case of a determination that a 
     violation of subsection (a)(2) has occurred, such remedies as 
     would be appropriate if awarded under section 15(c) of the 
     Age Discrimination in Employment Act of 1967 (29 U.S.C. 
     633a(c));
       ``(3) may include, in the case of a determination that a 
     violation of subsection (a)(3) has occurred, such remedies as 
     would be appropriate if awarded under section 505(a) of the 
     Rehabilitation Act of 1973 (29 U.S.C. 794a(a)(1)) or section 
     107 of the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12117(a)); and
       ``(4) may not include punitive damages.''.
       (2) Sections 303 through 319, and sections 322, 324, and 
     325 of the Civil Rights Act of 1991 (2 U.S.C. 1203--1218, 
     1221, 1223, and 1224) are repealed effective October 1, 1995, 
     except as provided in section 411.
       (3) Sections 320 and 321 of the Civil Rights Act of 1991 (2 
     U.S.C. 1219 and 1220) are redesignated as sections 303 and 
     304, respectively.
       (4) Sections 303 and 304 of the Civil Rights Act of 1991, 
     as so redesignated, are each amended by striking ``and 307(h) 
     of this title''.
       (5) Section 1205 of the Supplemental Appropriations Act of 
     1993 (2 U.S.C. 1207a) is repealed effective October 1, 1995, 
     except as provided in section 411.
       (b) Family and Medical Leave Act of 1993.--Section 501 of 
     the Family and Medical Leave Act of 1993 (2 U.S.C. 60m) is 
     repealed effective October 1, 1995, except as provided in 
     section 411.
       (c) Architect of the Capitol.--
       (1) Repeal.--Section 312(e) of the Architect of the Capitol 
     Human Resources Act (Public Law 103-283; 108 Stat. 1444) is 
     repealed effective October 1, 1995, except as provided in 
     section 411.
       (2) Application of general accounting office personnel act 
     of 1980.--The provisions of sections 751, 753, and 755 of 
     title 31, United States Code, amended by section 312(e) of 
     the Architect of the Capitol Human Resources Act, shall be 
     applied and administered as if such section 312(e) (and the 
     amendments made by such section) had not been enacted.

     SEC. 410. SAVINGS PROVISION.

       (a) Transition Provisions for Employees of the House of 
     Representatives and of the Senate.--
       (1) Claims not filed prior to effective date.--If, as of 
     the date on which sections 101 and 102 take effect, an 
     employee could have initiated a request for counseling under 
      [[Page S141]] section 305 of the Government Employees Rights 
     Act (2 U.S.C. 1205) or rule LI of the House of 
     Representatives, the employee may, on or after the date on 
     which sections 101 and 102 take effect, request counseling 
     pursuant to section 107(1), and seek relief pursuant to 
     section 107. Such a request for counseling must be initiated 
     on or before the last day on which a request for counseling 
     could have been made, in the case of an employee of the 
     Senate, under section 305 of the Government Employees Rights 
     Act or section 501(d) of the Family and Medical Leave Act of 
     1993, or, in the case of an employee of the House of 
     Representatives, under rule LI of the House of 
     Representatives, had those provisions remained in effect. If 
     the Office is not yet established to receive such a request 
     for counseling, the time for initiating such a request shall 
     be extended until 30 days after the Office begins accepting 
     such requests. All procedures and remedies under this Act 
     with respect to alleged violations under section 101, except 
     for civil actions under section 107(3)(B), shall be available 
     to the same extent as if such alleged violations had occurred 
     on or after the date on which sections 101 and 102 take 
     effect.
       (2) Claims filed prior to effective date.--If, as of the 
     date on which sections 101 and 102 take effect, an employee 
     to whom those sections apply--
       (A) has requested counseling pursuant to the Government 
     Employees Rights Act of 1991 or rule LI of the House of 
     Representatives--
       (i) if the counseling period has not ended--

       (I) the authority of such Act or rule shall continue with 
     respect to that request for counseling, until the end of the 
     counseling period; and
       (II) if the employee completes the counseling, the employee 
     shall be deemed to have complied with the requirements of 
     section 301, and any further proceedings shall be under this 
     Act, except that the right to bring a civil action under 
     section 107(3)(B) shall not be available; and

       (ii) if the counseling period has ended and the employee 
     would otherwise have been eligible to request mediation 
     pursuant to the Government Employee Rights Act of 1991 or 
     rule LI of the House of Representatives, the employee shall 
     be deemed to have complied with the requirements of section 
     301, and any further proceedings shall be under this Act;
       (B) has requested mediation pursuant to the Government 
     Employee Rights Act of 1991 or rule LI of the House of 
     Representatives--
       (i) if the mediation period has not ended--

       (I) the authority of such Act shall continue with respect 
     to the request for mediation, until the end of the mediation 
     period; and
       (II) if the employee completes the mediation, the employee 
     shall be deemed to have complied with the requirements of 
     section 302, and any further proceedings shall be under this 
     Act, except that the right to bring a civil action under 
     section 107(3)(B) shall not be available; and

       (ii) if the mediation period has ended and the employee 
     would otherwise have been eligible to file a complaint 
     pursuant to the Government Employee Rights Act of 1991 or 
     rule LI of the House of Representatives, the employee shall 
     be deemed to have complied with the requirements of section 
     302, and any further proceedings shall be under this Act; or
       (C) has filed a complaint pursuant to the Government 
     Employee Rights Act of 1991 or rule LI of the House of 
     Representatives, the authority of such Act or rule shall 
     continue with respect to that complaint until the conclusion 
     of all proceedings authorized under such Act or rule.
       (c) Architect of the Capitol Transition Provisions.--
       (1) Claims not filed prior to effective date.--If, as of 
     the date on which section 101 takes effect, an employee of 
     the Architect of the Capitol could have filed a complaint 
     regarding an alleged violation of section 312(e)(2) of the 
     Architect of the Capitol Human Resources Act (P.L. 103-323) 
     with the Architect of the Capitol in accordance with 
     requirements prescribed by the Architect of the Capitol, the 
     employee may request counseling pursuant to section 107(1), 
     and seek relief pursuant to section 107. Such a request for 
     counseling must be initiated on or before the latest of--
       (A) 60 days following the date on which section 101 takes 
     effect;
       (B) 30 days after the Office begins accepting such 
     requests; or
       (C) 180 days after the date of the alleged violation 
     forming the basis of the request for counseling.

     All procedures and remedies under this Act with respect to 
     alleged violations under section 101, except for civil 
     actions under section 107(3)(B), shall be available to the 
     same extent as if such alleged violations had occurred on or 
     after the date on which section 101 takes effect.
       (2) Complaints filed with the architect prior to effective 
     date.--If, on the date on which section 101 takes effect, an 
     employee of the Architect of the Capitol has filed a 
     complaint with the Architect of the Capitol alleging a 
     violation of section 312(e)(2) of the Architect of the 
     Capitol Human Resources Act, but the employee has not yet 
     filed a charge with the General Accounting Office Personnel 
     Appeals Board and the time for filing such a charge has not 
     expired, the employee may, within the later of 30 days after 
     the date on which section 101 takes effect or 30 days after 
     the date on which the Office first begins accepting such 
     requests, file a request for counseling request counseling 
     pursuant to section 107(1), and seek relief pursuant to 
     section 107. All procedures and remedies under this Act with 
     respect to alleged violations under section 101, except for 
     civil actions under section 107(3)(B), shall be available to 
     the same extent as if such alleged violations had occurred on 
     or after the date on which section 101 takes effect.
       (3) Complaints filed with the gao personnel appeals board 
     prior to effective date.--If, as of the date on which section 
     101 takes effect, an employee of the Architect of the Capitol 
     has filed a charge with the General Accounting Office 
     Personnel Appeals Board pursuant to section 312(e)(3)(A) of 
     the Architect of the Capitol Human Resources Act (P.L. 103-
     283), then, notwithstanding any other provision of this Act, 
     the authority of the Architect of the Capitol Human Resources 
     Act, and of the General Accounting Office Personnel Act of 
     1980 as amended by the Architect of the Capitol Human 
     Resources Act of 1994 shall continue with respect to that 
     charge until the conclusion of all proceedings authorized 
     under such Acts, including judicial review.
                  DIVISION B--LOBBYING AND GIFT REFORM
                        TITLE I--LOBBYING REFORM

     SEC. 1101. SHORT TITLE.

       This title may be cited as the ``Lobbying Disclosure Act of 
     1995''.

     SEC. 1102. FINDINGS.

       The Congress finds that--
       (1) responsible representative Government requires public 
     awareness of the efforts of paid lobbyists to influence the 
     public decisionmaking process in both the legislative and 
     executive branches of the Federal Government;
       (2) existing lobbying disclosure statutes have been 
     ineffective because of unclear statutory language, weak 
     administrative and enforcement provisions, and an absence of 
     clear guidance as to who is required to register and what 
     they are required to disclose; and
       (3) the effective public disclosure of the identity and 
     extent of the efforts of paid lobbyists to influence Federal 
     officials in the conduct of Government actions will increase 
     public confidence in the integrity of Government.

     SEC. 1103. DEFINITIONS.

       As used in this title:
       (1) Agency.--The term ``agency'' has the meaning given that 
     term in section 551(1) of title 5, United States Code.
       (2) Client.--The term ``client'' means any person or entity 
     that employs or retains another person for financial or other 
     compensation to conduct lobbying activities on behalf of that 
     person or entity. A person or entity whose employees act as 
     lobbyists on its own behalf is both a client and an employer 
     of such employees. In the case of a coalition or association 
     that employs or retains other persons to conduct lobbying 
     activities, the client is the coalition or association and 
     not its individual members.
       (3) Covered executive branch official.--The term ``covered 
     executive branch official'' means--
       (A) the President;
       (B) the Vice President;
       (C) any officer or employee, or any other individual 
     functioning in the capacity of such an officer or employee, 
     in the Executive Office of the President;
       (D) any officer or employee serving in a position in level 
     I, II, III, IV, or V of the Executive Schedule, as designated 
     by statute or Executive order;
       (E) any officer or employee serving in a Senior Executive 
     Service position, as defined in section 3132(a)(2) of title 
     5, United States Code;
       (F) any member of the uniformed services whose pay grade is 
     at or above O-7 under section 201 of title 37, United States 
     Code; and
       (G) any officer or employee serving in a position of a 
     confidential, policy-determining, policy-making, or policy-
     advocating character described in section 7511(b)(2) of title 
     5, United States Code.
       (4) Covered legislative branch official.--The term 
     ``covered legislative branch official'' means--
       (A) a Member of Congress;
       (B) an elected officer of either House of Congress;
       (C) any employee of, or any other individual functioning in 
     the capacity of an employee of--
       (i) a Member of Congress;
       (ii) a committee of either House of Congress;
       (iii) the leadership staff of the House of Representatives 
     or the leadership staff of the Senate;
       (iv) a joint committee of Congress; and
       (v) a working group or caucus organized to provide 
     legislative services or other assistance to Members of 
     Congress; and
       (D) any other legislative branch employee serving in a 
     position described under section 109(13) of the Ethics in 
     Government Act of 1978 (5 U.S.C. App.).
       (5) Director.--The term ``Director'' means the Director of 
     the Office of Lobbying Registration and Public Disclosure.
       (6) Employee.--The term ``employee'' means any individual 
     who is an officer, employee, partner, director, or proprietor 
     of a person or entity, but does not include--
       (A) independent contractors; or
       (B) volunteers who receive no financial or other 
     compensation from the person or entity for their services.
     [[Page S142]]   (7) Foreign entity.--The term ``foreign 
     entity'' means a foreign principal (as defined in section 
     1(b) of the Foreign Agents Registration Act of 1938 (22 
     U.S.C. 611(b)).
       (8) Lobbying activities.--The term ``lobbying activities'' 
     means lobbying contacts and efforts in support of such 
     contacts, including preparation and planning activities, 
     research and other background work that is intended, at the 
     time it is performed, for use in contacts, and coordination 
     with the lobbying activities of others. Lobbying activities 
     also include efforts to stimulate grassroots lobbying, as 
     described in section 4911(d)(1)(A) of the Internal Revenue 
     Code of 1986, to the extent that such communications are made 
     in support of a lobbying contact by a registered lobbyist. A 
     communication in support of a lobbying contact is a lobbying 
     activity even if the communication is excluded from the 
     definition of ``lobbying contact'' under paragraph (9)(B).
       (9) Lobbying contact.--
       (A) Definition.--The term ``lobbying contact'' means any 
     oral or written communication (including an electronic 
     communication) to a covered executive branch official or a 
     covered legislative branch official that is made on behalf of 
     a client with regard to--
       (i) the formulation, modification, or adoption of Federal 
     legislation (including legislative proposals);
       (ii) the formulation, modification, or adoption of a 
     Federal rule, regulation, Executive order, or any other 
     program, policy, or position of the United States Government;
       (iii) the administration or execution of a Federal program 
     or policy (including the negotiation, award, or 
     administration of a Federal contract, grant, loan, permit, or 
     license), except that this clause does not include 
     communications that are made to any covered executive branch 
     official--

       (I) who is serving in a Senior Executive Service position 
     described in paragraph (3)(E); or
       (II) who is a member of the uniformed services whose pay 
     grade is lower than O-9 under section 201 of title 37, United 
     States Code,

     in the agency responsible for taking such administrative or 
     executive action; or
       (iv) the nomination or confirmation of a person for a 
     position subject to confirmation by the Senate.
       (B) Exceptions.--The term ``lobbying contact'' does not 
     include a communication that is--
       (i) made by a public official acting in the public 
     official's official capacity;
       (ii) made by a representative of a media organization if 
     the purpose of the communication is gathering and 
     disseminating news and information to the public;
       (iii) made in a speech, article, publication or other 
     material that is widely distributed to the public, or through 
     radio, television, cable television, or other medium of mass 
     communication;
       (iv) made on behalf of a government of a foreign country or 
     a foreign political party and disclosed under the Foreign 
     Agents Registration Act of 1938 (22 U.S.C. 611 et seq.);
       (v) a request for a meeting, a request for the status of an 
     action, or any other similar administrative request, if the 
     request does not include an attempt to influence a covered 
     executive branch official or a covered legislative branch 
     official;
       (vi) made in the course of participation in an advisory 
     committee subject to the Federal Advisory Committee Act;
       (vii) testimony given before a committee, subcommittee, or 
     task force of the Congress, or submitted for inclusion in the 
     public record of a hearing conducted by such committee, 
     subcommittee, or task force;
       (viii) information provided in writing in response to a 
     written request by a covered executive branch official or a 
     covered legislative branch official for specific information;
       (ix) required by subpoena, civil investigative demand, or 
     otherwise compelled by statute, regulation, or other action 
     of the Congress or an agency;
       (x) made in response to a notice in the Federal Register, 
     Commerce Business Daily, or other similar publication 
     soliciting communications from the public and directed to the 
     agency official specifically designated in the notice to 
     receive such communications;
       (xi) not possible to report without disclosing information, 
     the unauthorized disclosure of which is prohibited by law;
       (xii) made to an official in an agency with regard to--

       (I) a judicial proceeding or a criminal or civil law 
     enforcement inquiry, investigation, or proceeding; or
       (II) a filing or proceeding that the Government is 
     specifically required by statute or regulation to maintain or 
     conduct on a confidential basis,

     if that agency is charged with responsibility for such 
     proceeding, inquiry, investigation, or filing;
       (xiii) made in compliance with written agency procedures 
     regarding an adjudication conducted by the agency under 
     section 554 of title 5, United States Code, or substantially 
     similar provisions;
       (xiv) a written comment filed in the course of a public 
     proceeding or any other communication that is made on the 
     record in a public proceeding;
       (xv) a petition for agency action made in writing and 
     required to be a matter of public record pursuant to 
     established agency procedures;
       (xvi) made on behalf of an individual with regard to that 
     individual's benefits, employment, or other personal matters 
     involving only that individual, except that this clause does 
     not apply to any communication with--

       (I) a covered executive branch official, or
       (II) a covered legislative branch official (other than the 
     individual's elected Members of Congress or employees who 
     work under such Members' direct supervision),

     with respect to the formulation, modification, or adoption of 
     private legislation for the relief of that individual;
       (xvii) a disclosure by an individual that is protected 
     under the amendments made by the Whistleblower Protection Act 
     of 1989, under the Inspector General Act of 1978, or under 
     another provision of law;
       (xviii) made by--

       (I) a church, its integrated auxiliary, or a convention or 
     association of churches that is exempt from filing a Federal 
     income tax return under paragraph 2(A)(i) of section 6033(a) 
     of the Internal Revenue Code of 1986, or
       (II) a religious order that is exempt from filing a Federal 
     income tax return under paragraph (2)(A)(iii) of such section 
     6033(a); and

       (xix) between--

       (I) officials of a self-regulatory organization (as defined 
     in section 3(a)(26) of the Securities Exchange Act) that is 
     registered with or established by the Securities and Exchange 
     Commission as required by that Act or a similar organization 
     that is designated by or registered with the Commodities 
     Future Trading Commission as provided under the Commodity 
     Exchange Act; and
       (II) the Securities and Exchange Commission or the 
     Commodities Future Trading Commission, respectively;

     relating to the regulatory responsibilities of such 
     organization under that Act.
       (10) Lobbying firm.--The term ``lobbying firm'' means a 
     person or entity that has 1 or more employees who are 
     lobbyists on behalf of a client other than that person or 
     entity. The term also includes a self-employed individual who 
     is a lobbyist.
       (11) Lobbyist.--The term ``lobbyist'' means any individual 
     who is employed or retained by a client for financial or 
     other compensation for services that include 1 or more 
     lobbying contacts, other than an individual whose lobbying 
     activities constitute less than 10 percent of the time 
     engaged in the services provided by such individual to that 
     client.
       (12) Media organization.--The term ``media organization'' 
     means a person or entity engaged in disseminating information 
     to the general public through a newspaper, magazine, other 
     publication, radio, television, cable television, or other 
     medium of mass communication.
       (13) Member of congress.--The term ``Member of Congress'' 
     means a Senator or a Representative in, or Delegate or 
     Resident Commissioner to, the Congress.
       (14) Organization.--The term ``organization'' means a 
     person or entity other than an individual.
       (15) Person or entity.--The term ``person or entity'' means 
     any individual, corporation, company, foundation, 
     association, labor organization, firm, partnership, society, 
     joint stock company, group of organizations, or State or 
     local government.
       (16) Public official.--The term ``public official'' means 
     any elected official, appointed official, or employee of--
       (A) a Federal, State, or local unit of government in the 
     United States other than--
       (i) a college or university;
       (ii) a government-sponsored enterprise (as defined in 
     section 3(8) of the Congressional Budget and Impoundment 
     Control Act of 1974);
       (iii) a public utility that provides gas, electricity, 
     water, or communications;
       (iv) a guaranty agency (as defined in section 435(j) of the 
     Higher Education Act of 1965 (20 U.S.C. 1085(j))), including 
     any affiliate of such an agency; or
       (v) an agency of any State functioning as a student loan 
     secondary market pursuant to section 435(d)(1)(F) of the 
     Higher Education Act of 1965 (20 U.S.C. 1085(d)(1)(F));
       (B) a Government corporation (as defined in section 9101 of 
     title 31, United States Code);
       (C) an organization of State or local elected or appointed 
     officials other than officials of an entity described in 
     clause (i), (ii), (iii), (iv), or (v) of subparagraph (A);
       (D) an Indian tribe (as defined in section 4(e) of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b(e));
       (E) a national or State political party or any 
     organizational unit thereof; or
       (F) a national, regional, or local unit of any foreign 
     government.
       (17) State.--The term ``State'' means each of the several 
     States, the District of Columbia, and any commonwealth, 
     territory, or possession of the United States.

     SEC. 1104. REGISTRATION OF LOBBYISTS.

       (a) Registration.--
       (1) General rule.--No later than 30 days after a lobbyist 
     first makes a lobbying contact or is employed or retained to 
     make a lobbying contact, whichever is earlier, such lobbyist 
     (or, as provided under paragraph (2), the organization 
     employing such lobbyist), shall register with the Office of 
     Lobbying Registration and Public Disclosure.
       (2) Employer filing.--Any organization that has 1 or more 
     employees who are lobbyists shall file a single registration 
     under this section on behalf of such employees for each 
     client on whose behalf the employees act as lobbyists.
       (3) Exemption.--
     [[Page S143]]   (A) General rule.--Notwithstanding paragraphs 
     (1) and (2), a person or entity whose--
       (i) total income for matters related to lobbying activities 
     on behalf of a particular client (in the case of a lobbying 
     firm) does not exceed and is not expected to exceed $2,500; 
     or
       (ii) total expenses in connection with lobbying activities 
     (in the case of an organization whose employees engage in 
     lobbying activities on its own behalf) do not exceed or are 
     not expected to exceed $5,000,

     (as estimated under section 1105) in the semiannual period 
     described in section 1105(a) during which the registration 
     would be made is not required to register under subsection 
     (a) with respect to such client.
       (B) Adjustment.--The dollar amounts in subparagraph (A) 
     shall be adjusted--
       (i) on January 1, 1997, to reflect changes in the Consumer 
     Price Index (as determined by the Secretary of Labor) since 
     the date of enactment of this title; and
       (ii) on January 1 of each fourth year occurring after 
     January 1, 1997, to reflect changes in the Consumer Price 
     Index (as determined by the Secretary of Labor) during the 
     preceding 4-year period,

     rounded to the nearest $500.
       (b) Contents of Registration.--Each registration under this 
     section shall be in such form as the Director shall prescribe 
     by regulation and shall contain--
       (1) the name, address, business telephone number, and 
     principal place of business of the registrant, and a general 
     description of its business or activities;
       (2) the name, address, and principal place of business of 
     the registrant's client, and a general description of its 
     business or activities (if different from paragraph (1));
       (3) the name, address, and principal place of business of 
     any organization, other than the client, that--
       (A) contributes more than $5,000 toward the lobbying 
     activities of the registrant in a semiannual period described 
     in section 1105(a); and
       (B) participates significantly in the planning, 
     supervision, or control of such lobbying activities;
       (4) the name, address, principal place of business, amount 
     of any contribution of more than $5,000 to the lobbying 
     activities of the registrant, and approximate percentage of 
     equitable ownership in the client (if any) of any foreign 
     entity that--
       (A) holds at least 20 percent equitable ownership in the 
     client or any organization identified under paragraph (3);
       (B) directly or indirectly, in whole or in major part, 
     plans, supervises, controls, directs, finances, or subsidizes 
     the activities of the client or any organization identified 
     under paragraph (3); or
       (C) is an affiliate of the client or any organization 
     identified under paragraph (3) and has a direct interest in 
     the outcome of the lobbying activity;
       (5) a statement of--
       (A) the general issue areas in which the registrant expects 
     to engage in lobbying activities on behalf of the client; and
       (B) to the extent practicable, specific issues that have 
     (as of the date of the registration) already been addressed 
     or are likely to be addressed in lobbying activities; and
       (6) the name of each employee of the registrant who has 
     acted or whom the registrant expects to act as a lobbyist on 
     behalf of the client and, if any such employee has served as 
     a covered executive branch official or a covered legislative 
     branch official in the 2 years before the date on which such 
     employee first acted (after the date of enactment of this 
     Act) as a lobbyist on behalf of the client, the position in 
     which such employee served.
       (c) Guidelines for Registration.--
       (1) Multiple clients.--In the case of a registrant making 
     lobbying contacts on behalf of more than 1 client, a separate 
     registration under this section shall be filed for each such 
     client.
       (2) Multiple contacts.--A registrant who makes more than 1 
     lobbying contact for the same client shall file a single 
     registration covering all such lobbying contacts.
       (d) Termination of Registration.--A registrant who after 
     registration--
       (1) is no longer employed or retained by a client to 
     conduct lobbying activities, and
       (2) does not anticipate any additional lobbying activities 
     for such client,
     may so notify the Director and terminate its registration.

     SEC. 1105. REPORTS BY REGISTERED LOBBYISTS.

       (a) Semiannual Report.--
       (1) In general.--No later than 30 days after the end of the 
     semiannual period beginning on the first day of each January 
     and the first day of July of each year in which a registrant 
     is registered under section 1104, each registrant shall file 
     a report with the Office of Lobbying Registration and Public 
     Disclosure on its lobbying activities during such semiannual 
     period. A separate report shall be filed for each client of 
     the registrant.
       (2) Exemption.--
       (A) General rule.--Any registrant whose--
       (i) total income for a particular client for matters that 
     are related to lobbying activities on behalf of that client 
     (in the case of a lobbying firm), does not exceed and is not 
     expected to exceed $2,500; or
       (ii) total expenses in connection with lobbying activities 
     (in the case of a registrant whose employees engage in 
     lobbying activities on its own behalf) do not exceed and are 
     not expected to exceed $5,000,

     in a semiannual period (as estimated under paragraph (3) or 
     (4) of subsection (b) or paragraph (4) of subsection (c), as 
     applicable) is deemed to be inactive during such period and 
     may comply with the reporting requirements of this section by 
     so notifying the Director in such form as the Director may 
     prescribe.
       (B) Adjustment.--The dollar amounts in subparagraph (A) 
     shall be adjusted as provided in section 1104(a)(3)(B).
       (b) Contents of Report.--Each semiannual report filed under 
     subsection (a) shall be in such form as the Director shall 
     prescribe by regulation and shall contain--
       (1) the name of the registrant, the name of the client, and 
     any changes or updates to the information provided in the 
     initial registration;
       (2) for each general issue area in which the registrant 
     engaged in lobbying activities on behalf of the client during 
     the semiannual filing period--
       (A) a list of the specific issues upon which a lobbyist 
     employed by the registrant engaged in lobbying activities, 
     including, to the maximum extent practicable, a list of bill 
     numbers and references to specific regulatory actions, 
     programs, projects, contracts, grants, and loans;
       (B) a statement of the Houses and committees of Congress 
     and the Federal agencies contacted by lobbyists employed by 
     the registrant on behalf of the client;
       (C) a list of the employees of the registrant who acted as 
     lobbyists on behalf of the client; and
       (D) a description of the interest, if any, of any foreign 
     entity identified under section 1104(b)(4) in the specific 
     issues listed under subparagraph (A).
       (3) in the case of a lobbying firm, a good faith estimate 
     of the total amount of all income from the client (including 
     any payments to the registrant by any other person for 
     lobbying activities on behalf of the client) during the 
     semiannual period, other than income for matters that are 
     unrelated to lobbying activities; and
       (4) in the case of a registrant engaged in lobbying 
     activities on its own behalf, a good faith estimate of the 
     total expenses that the registrant and its employees incurred 
     in connection with lobbying activities during the semiannual 
     filing period.
       (c) Estimates of Income or Expenses.--For purposes of this 
     section, estimates of income or expenses shall be made as 
     follows:
       (1) $100,000 or less.--Income or expenses of $100,000 or 
     less shall be estimated in accordance with the following 
     categories:
       (A) $10,000 or less.
       (B) More than $10,000 but not more than $20,000.
       (C) More than $20,000 but not more than $50,000.
       (D) More than $50,000 but not more than $100,000.
       (2) More than $100,000 but not more than $500,000.--Income 
     or expenses in excess of $100,000 but not more than $500,000 
     shall be estimated and rounded to the nearest $50,000.
       (3) More than $500,000.--Income or expenses in excess of 
     $500,000 shall be estimated and rounded to the nearest 
     $100,000.
       (4) Construction.--In estimating total income or expenses 
     under this section, a registrant is not required to include--
       (A) the value of contributed services for which no payment 
     is made; or
       (B) the expenses for services provided by an independent 
     contractor of the registrant who is separately registered 
     under this title.
       (d)  Contacts.--
       (1) Contacts with committees.--For purposes of subsection 
     (b)(2), any contact with a member of a committee of Congress, 
     an employee of a committee of Congress, or an employee of a 
     member of a committee of Congress regarding a matter within 
     the jurisdiction of such committee shall be considered to be 
     a contact with the committee.
       (2) Contacts with house of congress.--For purposes of 
     subsection (b)(2), any contact with a Member of Congress or 
     an employee of a Member of Congress regarding a matter that 
     is not within the jurisdiction of a committee of Congress of 
     which that Member is a member shall be considered to be a 
     contact with the House of Congress of that Member.
       (3) Contacts with federal agencies.--For purposes of 
     subsection (b)(2), any contact with a covered executive 
     branch official shall be considered to be a contact with the 
     Federal agency that employs that official, except that a 
     contact with a covered executive branch official who is 
     detailed to another Federal agency or to the Congress shall 
     be considered to be a contact with the Federal agency or with 
     the committee of Congress or House of Congress to which the 
     official is detailed.
       (e) Extension for Filing.--The Director may grant an 
     extension of time of not more than 30 days for the filing of 
     any report under this section, upon the request of the 
     registrant, for good cause shown.
     SEC. 1106. PROHIBITION ON GIFTS BY LOBBYISTS, LOBBYING FIRMS, 
                   AND AGENTS OF FOREIGN PRINCIPALS.

       (a) In General.--
       (1) Prohibition.--No lobbyist or lobbying firm registered 
     under this title and no agent of a foreign principal 
     registered under the Foreign Agents Registration Act may 
     provide a gift, directly or indirectly, to any covered 
     legislative branch official.
       (2) Definition.--For purposes of this section--
     [[Page S144]]   (A) the term ``gift'' means any gratuity, 
     favor, discount, entertainment, hospitality, loan, 
     forbearance, or other item having monetary value and such 
     term includes gifts of services, training, transportation, 
     lodging, and meals, whether provided in kind, by purchase of 
     a ticket, payment in advance, or reimbursement after the 
     expense has been incurred; and
       (B) a gift to the spouse or dependent of a covered 
     legislative branch official (or a gift to any other 
     individual based on that individual's relationship with the 
     covered legislative branch official) shall be considered a 
     gift to the covered legislative branch official if it is 
     given with the knowledge and acquiescence of the covered 
     legislative branch official and is given because of the 
     official position of the covered legislative branch official.
       (b) Gifts.--The prohibition in subsection (a) includes the 
     following:
       (1) Anything provided by a lobbyist or a foreign agent 
     which is paid for, charged to, or reimbursed by a client or 
     firm of such lobbyist or foreign agent.
       (2) Anything provided by a lobbyist, a lobbying firm, or a 
     foreign agent to an entity that is maintained or controlled 
     by a covered legislative branch official.
       (3) A charitable contribution (as defined in section 170(c) 
     of the Internal Revenue Code of 1986) made by a lobbyist, a 
     lobbying firm, or a foreign agent on the basis of a 
     designation, recommendation, or other specification of a 
     covered legislative branch official (not including a mass 
     mailing or other solicitation directed to a broad category of 
     persons or entities).
       (4) A contribution or other payment by a lobbyist, a 
     lobbying firm, or a foreign agent to a legal expense fund 
     established for the benefit of a covered legislative branch 
     official or a covered executive branch official.
       (5) A charitable contribution (as defined in section 170(c) 
     of the Internal Revenue Code of 1986) made by a lobbyist, a 
     lobbying firm, or a foreign agent in lieu of an honorarium to 
     a covered legislative branch official.
       (6) A financial contribution or expenditure made by a 
     lobbyist, a lobbying firm, or a foreign agent relating to a 
     conference, retreat, or similar event, sponsored by or 
     affiliated with an official congressional organization, for 
     or on behalf of covered legislative branch officials.
       (c) Not Gifts.--The following are not gifts subject to the 
     prohibition in subsection (a):
       (1) Anything for which the recipient pays the market value, 
     or does not use and promptly returns to the donor.
       (2) A contribution, as defined in the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431 et seq.) that is lawfully 
     made under that Act, or attendance at a fundraising event 
     sponsored by a political organization described in section 
     527(e) of the Internal Revenue Code of 1986.
       (3) Food or refreshments of nominal value offered other 
     than as part of a meal.
       (4) Benefits resulting from the business, employment, or 
     other outside activities of the spouse of a covered 
     legislative branch official, if such benefits are customarily 
     provided to others in similar circumstances.
       (5) Pension and other benefits resulting from continued 
     participation in an employee welfare and benefits plan 
     maintained by a former employer.
       (6) Informational materials that are sent to the office of 
     a covered legislative branch official in the form of books, 
     articles, periodicals, other written materials, audiotapes, 
     videotapes, or other forms of communication.
       (d) Gifts Given for a Nonbusiness Purpose and Motivated by 
     Family Relationship or Close Personal Friendship.--
       (1) In general.--A gift given by an individual under 
     circumstances which make it clear that the gift is given for 
     a nonbusiness purpose and is motivated by a family 
     relationship or close personal friendship and not by the 
     position of the covered legislative branch official shall not 
     be subject to the prohibition in subsection (a).
       (2) Nonbusiness purpose.--A gift shall not be considered to 
     be given for a nonbusiness purpose if the individual giving 
     the gift seeks--
       (A) to deduct the value of such gift as a business expense 
     on the individual's Federal income tax return, or
       (B) direct or indirect reimbursement or any other 
     compensation for the value of the gift from a client or 
     employer of such lobbyist or foreign agent.
       (3) Family relationship or close personal friendship.--In 
     determining if the giving of a gift is motivated by a family 
     relationship or close personal friendship, at least the 
     following factors shall be considered:
       (A) The history of the relationship between the individual 
     giving the gift and the recipient of the gift, including 
     whether or not gifts have previously been exchanged by such 
     individuals.
       (B) Whether the gift was purchased by the individual who 
     gave the item.
       (C) Whether the individual who gave the gift also at the 
     same time gave the same or similar gifts to other covered 
     legislative branch officials.
     SEC. 1107. OFFICE OF LOBBYING REGISTRATION AND PUBLIC 
                   DISCLOSURE.

       (a) Establishment and Director.--
       (1) Establishment.--There is established an executive 
     agency to be known as the Office of Lobbying Registration and 
     Public Disclosure.
       (2) Director.--(A) The Office shall be headed by a 
     Director, who shall be appointed by the President, by and 
     with the advice and consent of the Senate.
       (B) The Director shall be an individual who, by 
     demonstrated ability, background, training, and experience, 
     is qualified to carry out the functions of the position. The 
     term of service of the Director shall be 5 years. The 
     Director may be removed for cause.
       (C) Section 5316 of title 5, United States Code, is amended 
     by adding at the end the following: ``Director of the Office 
     of Lobbying Registration and Public Disclosure''.
       (b) Administrative Powers.--The Director may--
       (1) appoint officers and employees, including attorneys, in 
     accordance with chapter 51 and subchapter III of chapter 53 
     of title 5, United States Code, define their duties and 
     responsibilities, and direct and supervise their activities;
       (2) contract for financial and administrative services 
     (including those related to budget and accounting, financial 
     reporting, personnel, and procurement) with the General 
     Services Administration, or such Federal agency as the 
     Director determines appropriate, for which payment shall be 
     made in advance or by reimbursement from funds of the Office 
     in such amounts as may be agreed upon by the Director and the 
     head of the agency providing such services, but the contract 
     authority under this paragraph shall be effective for any 
     fiscal year only to the extent that appropriations are 
     available for that purpose;
       (3) request the head of any Federal department or agency 
     (who is hereby so authorized) to detail to temporary duties 
     with the Office such personnel within the agency head's 
     administrative jurisdiction as the Office may need for 
     carrying out its functions under this title, with or without 
     reimbursement;
       (4) request agency heads to provide information needed by 
     the Office, which information shall be supplied to the extent 
     permitted by law;
       (5) utilize, with their consent, the services and 
     facilities of Federal agencies with or without reimbursement;
       (6) accept, use, and dispose of gifts or donations of 
     services or property, real, personal, or mixed, tangible or 
     intangible, for purposes of aiding or facilitating the work 
     of the Office; and
       (7) use the United States mails in the same manner and 
     under the same conditions as other departments and agencies 
     of the United States.
       (c) Cooperation With Other Governmental Agencies.--In order 
     to avoid unnecessary expense and duplication of function 
     among Government agencies, the Office may make such 
     arrangements or agreements for cooperation or mutual 
     assistance in the performance of its functions under this 
     title as is practicable and consistent with law. The head of 
     the General Services Administration and each department, 
     agency, or establishment of the United States shall cooperate 
     with the Office and, to the extent permitted by law, provide 
     such information, services, personnel, and facilities as the 
     Office may request for its assistance in the performance of 
     its functions under this title.
       (d) Duties.--The Director shall--
       (1) after notice and a reasonable opportunity for public 
     comment, and consultation with the Secretary of the Senate, 
     the Clerk of the House of Representatives, and the 
     Administrative Conference of the United States, prescribe 
     such regulations, penalty guidelines, and forms as are 
     necessary to carry out this title;
       (2) provide guidance and assistance on the registration and 
     reporting requirements of this title, including--
       (A) providing information to all registrants at the time of 
     registration about the obligations of registered lobbyists 
     under this title, and
       (B) issuing published decisions and advisory opinions;
       (3) review the registrations and reports filed under this 
     title and make such verifications or inquiries as are 
     necessary to ensure the completeness, accuracy, and 
     timeliness of the registrations and reports;
       (4) develop filing, coding, and cross-indexing systems to 
     carry out the purposes of this title, including--
       (A) a publicly available list of all registered lobbyists 
     and their clients; and
       (B) computerized systems designed to minimize the burden of 
     filing and maximize public access to materials filed under 
     this title;
       (5) ensure that the computer systems developed pursuant to 
     paragraph (4)--
       (A) allow the materials filed under this title to be 
     accessed by the client name, lobbyist name, and registrant 
     name;
       (B) are compatible with computer systems developed and 
     maintained by the Federal Election Commission, and that 
     information filed in the two systems can be readily cross-
     referenced; and
       (C) are compatible with computer systems developed and 
     maintained by the Secretary of the Senate and the Clerk of 
     the House of Representatives;
       (6) make copies of each registration and report filed under 
     this title available to the public, upon the payment of 
     reasonable fees, not to exceed the cost of such copies, as 
     determined by the Director, in written and electronic 
     formats, as soon as practicable after the date on which such 
     registration or report is received;
       (7) preserve the originals or accurate reproduction of--
     [[Page S145]]   (A) registrations filed under this title for 
     a period that ends not less than 3 years after the 
     termination of the registration under section 1104(d); and
       (B) reports filed under this title for a period that ends 
     not less than 3 years after the date on which the report is 
     received;
       (8) maintain a computer record of--
       (A) the information contained in registrations for a period 
     that ends not less than 5 years after the termination of the 
     registration under section 1104(d); and
       (B) the information contained in reports filed under this 
     title for a period that ends not less than 5 years after the 
     date on which the reports are received;
       (9) compile and summarize, with respect to each semiannual 
     period, the information contained in registrations and 
     reports filed with respect to such period in a manner which 
     clearly presents the extent and nature of expenditures on 
     lobbying activities during such period;
       (10) make information compiled and summarized under 
     paragraph (9) available to the public in electronic and hard 
     copy formats as soon as practicable after the close of each 
     semiannual filing period;
       (11) provide, by computer telecommunication or other 
     transmittal in a form accessible by computer, to the 
     Secretary of the Senate and the Clerk of the House of 
     Representatives copies of all registrations and reports 
     received under sections 1104 and 1105 and all compilations, 
     cross-indexes, and summaries of such registrations and 
     reports, as soon as practicable (but not later than 3 working 
     days) after such material is received or created;
       (12) make available to the public a list of all persons 
     whom the Director determines, under section 1109 (after 
     exhaustion of all appeals under section 1111) to have 
     committed a major or minor violation of this title and submit 
     such list to the Congress as part of the report provided for 
     under paragraph (13);
       (13) make available to the public upon request and transmit 
     to the President, the Secretary of the Senate, the Clerk of 
     the House of Representatives, the Committee on Governmental 
     Affairs of the Senate, and the Committee on the Judiciary of 
     the House of Representatives a report, not later than March 
     31 of each year, describing the activities of the Office and 
     the implementation of this title, including--
       (A) a financial statement for the preceding fiscal year;
       (B) a summary of the registrations and reports filed with 
     the Office with respect to the preceding calendar year;
       (C) a summary of the registrations and reports filed on 
     behalf of foreign entities with respect to the preceding 
     calendar year; and
       (D) recommendations for such legislative or other action as 
     the Director considers appropriate; and
       (14) study the appropriateness of the definition of 
     ``public official'' under section 1103(17) and make 
     recommendations for any change in such definition in the 
     first report filed pursuant to paragraph (13).

     SEC. 1108. INITIAL PROCEDURE FOR ALLEGED VIOLATIONS.

       (a) Allegation of a Violation.--Whenever the Office of 
     Lobbying Registration and Public Disclosure has reason to 
     believe that a person or entity may be in violation of the 
     requirements of this title, the Director shall notify the 
     person or entity in writing of the nature of the alleged 
     violation and provide an opportunity for the person or entity 
     to respond in writing to the allegation within 30 days after 
     the notification is sent or such longer period as the 
     Director may determine appropriate in the circumstances.
       (b) Initial Determination.--
       (1) In general.--If the person or entity responds within 
     the period described in the notification under subsection 
     (a), the Director shall--
       (A) issue a written determination that the person or entity 
     has not violated this title if the person or entity provides 
     adequate information or explanation to make such 
     determination; or
       (B) make a formal request for information under subsection 
     (c) or a notification under section 1109(a), if the 
     information or explanation provided is not adequate to make a 
     determination under subparagraph (A).
       (2) Written decision.--If the Director makes a 
     determination under paragraph (1)(A), the Director shall 
     issue a public written decision in accordance with section 
     1110.
       (c) Formal Request for Information.--If a person or entity 
     fails to respond in writing within the period described in 
     the notification under subsection (a) or the response is not 
     adequate to determine whether such person or entity has 
     violated this title, the Director may make a formal request 
     for specific additional written information (subject to 
     applicable privileges) that is reasonably necessary for the 
     Director to make such determination. Each such request shall 
     be structured to minimize any burden imposed, consistent with 
     the need to determine whether the person or entity is in 
     compliance with this title, and shall--
       (1) state the nature of the conduct constituting the 
     alleged violation which is the basis for the inquiry and the 
     provision of law applicable thereto;
       (2) describe the class or classes of material to be 
     produced pursuant to the request with such definiteness and 
     certainty as to permit such material to be readily 
     identified; and
       (3) prescribe a return date or dates which provide a 
     reasonable period of time within which the person or entity 
     may assemble and make available for inspection and copying or 
     reproduction the material so requested.

     SEC. 1109. DETERMINATIONS OF VIOLATIONS.

       (a) Notification and Hearing.--If the information provided 
     to the Director under section 1108 indicates that a person or 
     entity may have violated this title, the Director shall--
       (1) notify the person or entity in writing of this finding 
     and, if appropriate, a proposed penalty assessment and 
     provide such person or entity with an opportunity to respond 
     in writing within 30 days after the notice is sent; and
       (2) if requested in writing by that person or entity within 
     that 30-day period, afford the person or entity an 
     opportunity for a hearing on the record under the provisions 
     of section 554 of title 5, United States Code.
       (b) Determination.--Upon the receipt of a written response 
     under subsection (a)(1) when no hearing under subsection 
     (a)(2) is requested, upon the completion of a hearing 
     requested under subsection (a)(2), or upon the expiration of 
     30 days in a case in which no such written response is 
     received, the Director shall review the information received 
     under section 1108 and this section (including evidence 
     presented at any such hearing) and make a final determination 
     whether there was a violation and a final determination of 
     the penalty, if any. If no written response was received 
     under this section within the 30-day period provided, the 
     determination and penalty assessment shall constitute a final 
     order not subject to appeal.
       (c) Written Decision.--
       (1) Determination of violation.--If the Director makes a 
     final determination under subsection (b) that there was a 
     violation, the Director shall issue a written decision in 
     accordance with section 1110--
       (A) directing the person or entity to correct the 
     violation; and
       (B) assessing a civil monetary penalty--
       (i) in the case of a minor violation, which shall be no 
     more than $10,000, depending on the extent and gravity of the 
     violation;
       (ii) in the case of a major violation, which shall be more 
     than $10,000, but no more than $100,000, depending on the 
     extent and gravity of the violation;
       (iii) in the case of a late registration or filing, which 
     shall be $200 for each week by which the registration or 
     filing was late, unless the Director determines that the 
     failure to timely register or file constitutes a major 
     violation (as defined under subsection (e)(2)) in which case 
     the amount shall be as prescribed by clause (ii); or
       (iv) in the case of a failure to provide information 
     requested by the Director pursuant to section 1108(c), which 
     shall be no more than $10,000, depending on the extent and 
     gravity of the violation, except that no penalty shall be 
     assessed if the Director determines that the violation was 
     the result of a good faith dispute over the validity or 
     appropriate scope of a request for information.
       (2) Determination of no violation or insufficient 
     evidence.--If the Director determines that no violation 
     occurred or there was not sufficient evidence that a 
     violation occurred, the Director shall issue a written 
     decision in accordance with section 1110.
       (d) Civil Injunctive Relief.--If a person or entity fails 
     to comply with a directive to correct a violation under 
     subsection (c), the Director shall refer the case to the 
     Attorney General to seek civil injunctive relief in the 
     appropriate court of the United States to compel such person 
     or entity to comply with such directive.
       (e) Penalty Assessments.--
       (1) General rule.--No penalty shall be assessed under this 
     section unless the Director finds that the person or entity 
     subject to the penalty knew or should have known that such 
     person or entity was in violation of this title. In 
     determining the amount of a penalty to be assessed, the 
     Director shall take into account the totality of the 
     circumstances, including the extent and gravity of the 
     violation, whether the violation was voluntarily admitted and 
     corrected, the extent to which the person or entity may have 
     profited from the violation, the ability of the person or 
     entity to pay, and such other matters as justice may require.
       (2) Regulations.--Regulations prescribed by the Director 
     under section 1107 shall define major and minor violations. 
     Major violations shall be defined to include a failure to 
     register and any other violation that is extensive or 
     repeated, if the person or entity who failed to register or 
     committed such other violation--
       (A) had actual knowledge that the conduct constituted a 
     violation;
       (B) acted in deliberate ignorance of the provisions of this 
     title or regulations related to the conduct constituting a 
     violation; or
       (C) acted in reckless disregard of the provisions of this 
     title or regulations related to the conduct constituting a 
     violation.
       (f) Limitation.--No proceeding shall be initiated under 
     section 1108 or this section unless the Director notifies the 
     person or entity who is to be the subject of the proceeding 
     of the alleged violation within 3 years after the date on 
     which the alleged violation occurred.

     SEC. 1110. DISCLOSURE OF INFORMATION; WRITTEN DECISIONS.

       (a) Disclosure of Information.--Information provided to the 
     Director pursuant to sections 1108 and 1109 shall not be made 
     available to the public without the consent of the person or 
     entity providing the information, except to the extent that 
     such information may be included in--
     [[Page S146]]   (1) a new or amended report or registration 
     filed under this title; or
       (2) a written decision issued by the Director under this 
     section.
       (b) Written Decisions.--All written decisions issued by the 
     Director under sections 1108 and 1109 shall be made available 
     to the public. The Director may provide for the publication 
     of a written decision if the Director determines that 
     publication would provide useful guidance. Before making a 
     written decision public, the Director--
       (1) shall delete information that would identify a person 
     or entity who was alleged to have violated this title if--
       (A) there was insufficient evidence to determine that the 
     person or entity violated this title or the Director found 
     that person or entity did not violate this title, and
       (B) the person or entity so requests; and
       (2) shall delete information that would identify any other 
     person or entity (other than a person or entity who was found 
     to have violated this title), if the Director determines that 
     such person or entity could reasonably be expected to be 
     injured by the disclosure of such information.

     SEC. 1111. JUDICIAL REVIEW.

       (a) Final Decision.--A written decision issued by the 
     Director under section 1109 shall become final 60 days after 
     the date on which the Director provides notice of the 
     decision, unless such decision is appealed under subsection 
     (b) of this section.
       (b) Appeal.--Any person or entity adversely affected by a 
     written decision issued by the Director under section 1109 
     may appeal such decision, except as provided under section 
     1109(b), to the appropriate United States court of appeals. 
     Such review may be obtained by filing a written notice of 
     appeal in such court no later than 60 days after the date on 
     which the Director provides notice of the Director's decision 
     and by simultaneously sending a copy of such notice of appeal 
     to the Director. The Director shall file in such court the 
     record upon which the decision was issued, as provided under 
     section 2112 of title 28, United States Code. The findings of 
     fact of the Director shall be conclusive, unless found to be 
     unsupported by substantial evidence, as provided under 
     section 706(2)(E) of title 5, United States Code. Any penalty 
     assessed or other action taken in the decision shall be 
     stayed during the pendency of the appeal.
       (c) Recovery of Penalty.--Any penalty assessed in a written 
     decision which has become final under this title may be 
     recovered in a civil action brought by the Attorney General 
     in an appropriate United States district court. In any such 
     action, no matter that was raised or that could have been 
     raised before the Director or pursuant to judicial review 
     under subsection (b) may be raised as a defense, and the 
     determination of liability and the determination of amounts 
     of penalties and assessments shall not be subject to review.

     SEC. 1112. RULES OF CONSTRUCTION.

       (a) Constitutional Rights.--Nothing in this title shall be 
     construed to prohibit or interfere with--
       (1) the right to petition the government for the redress of 
     grievances;
       (2) the right to express a personal opinion; or
       (3) the right of association,
     protected by the first amendment to the Constitution.
       (b) Prohibition of Activities.--Nothing in this title shall 
     be construed to prohibit, or to authorize the Director or any 
     court to prohibit, lobbying activities or lobbying contacts 
     by any person or entity, regardless of whether such person or 
     entity is in compliance with the requirements of this title.
       (c) Audit and Investigations.--Nothing in this title shall 
     be construed to grant general audit or investigative 
     authority to the Director.

     SEC. 1113. AMENDMENTS TO THE FOREIGN AGENTS REGISTRATION ACT.

       The Foreign Agents Registration Act of 1938 (22 U.S.C. 611 
     et seq.) is amended--
       (1) in section 1--
       (A) by striking subsection (j);
       (B) in subsection (o) by striking ``the dissemination of 
     political propaganda and any other activity which the person 
     engaging therein believes will, or which he intends to, 
     prevail upon, indoctrinate, convert, induce, persuade, or in 
     any other way influence'' and inserting ``any activity that 
     the person engaging in believes will, or that the person 
     intends to, in any way influence'';
       (C) in subsection (p) by striking the semicolon and 
     inserting a period; and
       (D) by striking subsection (q);
       (2) in section 3(g) (22 U.S.C. 613(g)), by striking 
     ``established agency proceedings, whether formal or 
     informal.'' and inserting ``judicial proceedings, criminal or 
     civil law enforcement inquiries, investigations, or 
     proceedings, or agency proceedings required by statute or 
     regulation to be conducted on the record.'';
       (3) in section 3 (22 U.S.C. 613) by adding at the end the 
     following:
       ``(h) Any agent of a person described in section 1(b)(2) or 
     an entity described in section 1(b)(3) if the agent is 
     required to register and does register under the Lobbying 
     Disclosure Act of 1994 in connection with the agent's 
     representation of such person or entity.'';
       (4) in section 4(a) (22 U.S.C. 614(a))--
       (A) by striking ``political propaganda'' and inserting 
     ``informational materials''; and
       (B) by striking ``and a statement, duly signed by or on 
     behalf of such an agent, setting forth full information as to 
     the places, times, and extent of such transmittal'';
       (5) in section 4(b) (22 U.S.C. 614(b))--
       (A) in the matter preceding clause (i), by striking 
     ``political propaganda'' and inserting ``informational 
     materials''; and
       (B) by striking ``(i) in the form of prints, or'' and all 
     that follows through the end of the subsection and inserting 
     ``without placing in such informational materials a 
     conspicuous statement that the materials are distributed by 
     the agent on behalf of the foreign principal, and that 
     additional information is on file with the Department of 
     Justice, Washington, District of Columbia. The Attorney 
     General may by rule define what constitutes a conspicuous 
     statement for the purposes of this subsection.'';
       (6) in section 4(c) (22 U.S.C. 614(c)), by striking 
     ``political propaganda'' and inserting ``informational 
     materials'';
       (7) in section 6 (22 U.S.C. 616)--
       (A) in subsection (a) by striking ``and all statements 
     concerning the distribution of political propaganda'';
       (B) in subsection (b) by striking ``, and one copy of every 
     item of political propaganda''; and
       (C) in subsection (c) by striking ``copies of political 
     propaganda,'';
       (8) in section 8 (22 U.S.C. 618)--
       (A) in subsection (a)(2) by striking ``or in any statement 
     under section 4(a) hereof concerning the distribution of 
     political propaganda''; and
       (B) by striking subsection (d); and
       (9) in section 11 (22 U.S.C. 621) by striking ``, including 
     the nature, sources, and content of political propaganda 
     disseminated or distributed''.

     SEC. 1114. AMENDMENTS TO THE BYRD AMENDMENT.

       (a) Revised Certification Requirements.--Section 1352(b) of 
     title 31, United States Code, is amended--
       (1) in paragraph (2) by striking subparagraphs (A), (B), 
     and (C) and inserting the following:
       ``(A) the name of any registrant under the Lobbying 
     Disclosure Act of 1994 who has made lobbying contacts on 
     behalf of the person with respect to that Federal contract, 
     grant, loan, or cooperative agreement; and
       ``(B) a certification that the person making the 
     declaration has not made, and will not make, any payment 
     prohibited by subsection (a).'';
       (2) in paragraph (3) by striking all that follows ``loan 
     shall contain'' and inserting ``the name of any registrant 
     under the Lobbying Disclosure Act of 1994 who has made 
     lobbying contacts on behalf of the person in connection with 
     that loan insurance or guarantee.''; and
       (3) by striking paragraph (6) and redesignating paragraph 
     (7) as paragraph (6).
       (b) Removal of Obsolete Reporting Requirement.--Section 
     1352 of title 31, United States Code, is further amended--
       (1) by striking subsection (d); and
       (2) by redesignating subsections (e), (f), (g), and (h) as 
     subsections (d), (e), (f), and (g), respectively.

     SEC. 1115. REPEAL OF CERTAIN LOBBYING PROVISIONS.

       (a) Repeal of the Federal Regulation of Lobbying Act.--The 
     Federal Regulation of Lobbying Act (2 U.S.C. 261 et seq.) is 
     repealed.
       (b) Repeal of Provisions Relating to Housing Lobbyist 
     Activities.--
       (1) Section 13 of the Department of Housing and Urban 
     Development Act (42 U.S.C. 3537b) is repealed.
       (2) Section 536(d) of the Housing Act of 1949 (42 U.S.C. 
     1490p(d)) is repealed.

     SEC. 1116. CONFORMING AMENDMENTS TO OTHER STATUTES.

       (a) Amendment to Competitiveness Policy Council Act.--
     Section 5206(e) of the Competitiveness Policy Council Act (15 
     U.S.C. 4804(e)) is amended by inserting ``or a lobbyist for a 
     foreign entity (as the terms `lobbyist' and `foreign entity' 
     are defined under section 1103 of the Lobbying Disclosure Act 
     of 1994)'' after ``an agent for a foreign principal''.
       (b) Amendments to Title 18, United States Code.--Section 
     219(a) of title 18, United States Code, is amended--
       (1) by inserting ``or a lobbyist required to register under 
     the Lobbying Disclosure Act of 1994 in connection with the 
     representation of a foreign entity, as defined in section 
     1103(7) of that Act'' after ``an agent of a foreign principal 
     required to register under the Foreign Agents Registration 
     Act of 1938''; and
       (2) by striking out ``, as amended,''.
       (c) Amendment to Foreign Service Act of 1980.--Section 
     602(c) of the Foreign Service Act of 1980 (22 U.S.C. 4002(c)) 
     is amended by inserting ``or a lobbyist for a foreign entity 
     (as defined in section 1103(7) of the Lobbying Disclosure Act 
     of 1994)'' after ``an agent of a foreign principal (as 
     defined by section 1(b) of the Foreign Agents Registration 
     Act of 1938)''.

     SEC. 1117. SEVERABILITY.

       If any provision of this title, or the application thereof, 
     is held invalid, the validity of the remainder of this title 
     and the application of such provision to other persons and 
     circumstances shall not be affected thereby.

     SEC. 1118. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated for fiscal years 
     1995, 1996, 1997, 1998, and 1999 such sums as may be 
     necessary to carry out this title.

[[Page S147]]

     SEC. 1119. IDENTIFICATION OF CLIENTS AND COVERED OFFICIALS.

       (a) Oral Lobbying Contacts.--Any person or entity that 
     makes an oral lobbying contact with a covered legislative 
     branch official or a covered executive branch official shall, 
     on the request of the official at the time of the lobbying 
     contact--
       (1) state whether the person or entity is registered under 
     this title and identify the client on whose behalf the 
     lobbying contact is made; and
       (2) state whether such client is a foreign entity and 
     identify any foreign entity required to be disclosed under 
     section 1104(b)(4) that has a direct interest in the outcome 
     of the lobbying activity.
       (b) Written Lobbying Contacts.--Any person or entity 
     registered under this title that makes a written lobbying 
     contact (including an electronic communication) with a 
     covered legislative branch official or a covered executive 
     branch official shall--
       (1) if the client on whose behalf the lobbying contact was 
     made is a foreign entity, identify such client, state that 
     the client is considered a foreign entity under this title, 
     and state whether the person making the lobbying contact is 
     registered on behalf of that client under section 1104; and
       (2) identify any other foreign entity identified pursuant 
     to section 1104(b)(4) that has a direct interest in the 
     outcome of the lobbying activity.
       (c) Identification as Covered Official.--Upon request by a 
     person or entity making a lobbying contact, the individual 
     who is contacted or the office employing that individual 
     shall indicate whether or not the individual is a covered 
     legislative branch official or a covered executive branch 
     official.

     SEC. 1120. TRANSITIONAL FILING REQUIREMENT.

       (a) Simultaneous Filing.--Subject to subsection (b), each 
     registrant shall transmit simultaneously to the Secretary of 
     the Senate and the Clerk of the House of Representatives an 
     identical copy of each registration and report required to be 
     filed under this title.
       (b) Sunset Provision.--The simultaneous filing requirement 
     under subsection (a) shall be effective until such time as 
     the Director, in consultation with the Secretary of the 
     Senate and the Clerk of the House of Representatives, 
     determines that the Office of Lobbying Registration and 
     Public Disclosure is able to provide computer 
     telecommunication or other transmittal of registrations and 
     reports as required under section 1107(b)(11).
       (c) Implementation.--The Director, the Secretary of the 
     Senate, and the Clerk of the House of Representatives shall 
     take such actions as necessary to ensure that the Office of 
     Lobbying Registration and Public Disclosure is able to 
     provide computer telecommunication or other transmittal of 
     registrations and reports as required under section 
     1107(b)(11) on the effective date of this title, or as soon 
     thereafter as reasonably practicable.

     SEC. 1121. ESTIMATES BASED ON TAX REPORTING SYSTEM.

       (a) Entities Covered by Section 6033(b) of the Internal 
     Revenue Code of 1986.--A registrant that is required to 
     report and does report lobbying expenditures pursuant to 
     section 6033(b)(8) of the Internal Revenue Code of 1986 may--
       (1) make a good faith estimate (by category of dollar 
     value) of applicable amounts that would be required to be 
     disclosed under such section for the appropriate semiannual 
     period to meet the requirements of sections 1104(a)(3), 
     1105(a)(2), and 1105(b)(4); and
       (2) in lieu of using the definition of ``lobbying 
     activities'' in section 1103(8) of this title, consider as 
     lobbying activities only those activities that are 
     influencing legislation as defined in section 4911(d) of the 
     Internal Revenue Code of 1986.
       (b) Entities Covered by Section 162(e) of the Internal 
     Revenue Code of 1986.--A registrant that is required to 
     account for lobbying expenditures and does account for 
     lobbying expenditures pursuant to section 162(e) of the 
     Internal Revenue Code of 1986 may--
       (1) make a good faith estimate (by category of dollar 
     value) of applicable amounts that would not be deductible 
     pursuant to such section for the appropriate semiannual 
     period to meet the requirements of sections 1104(a)(3), 
     1105(a)(2), and 1105(b)(4); and
       (2) in lieu of using the definition of ``lobbying 
     activities'' in section 1103(8) of this title, consider as 
     lobbying activities only those activities, the costs of which 
     are not deductible pursuant to section 162(e) of the Internal 
     Revenue Code of 1986.
       (c) Disclosure of Estimate.--Any registrant that elects to 
     make estimates required by this title under the procedures 
     authorized by subsection (a) or (b) for reporting or 
     threshold purposes shall--
       (1) inform the Director that the registrant has elected to 
     make its estimates under such procedures; and
       (2) make all such estimates, in a given calendar year, 
     under such procedures.
       (d) Study.--Not later than March 31, 1997, the Comptroller 
     General of the United States shall review reporting by 
     registrants under subsections (a) and (b) and report to the 
     Congress--
       (1) the differences between the definition of ``lobbying 
     activities'' in section 1103(8) and the definitions of 
     ``lobbying expenditures'', ``influencing legislation'', and 
     related terms in sections 162(e) and 4911 of the Internal 
     Revenue Code of 1986, as each are implemented by regulations;
       (2) the impact that any such differences may have on filing 
     and reporting under this title pursuant to this subsection; 
     and
       (3) any changes to this title or to the appropriate 
     sections of the Internal Revenue Code of 1986 that the 
     Comptroller General may recommend to harmonize the 
     definitions.

     SEC. 1122. EFFECTIVE DATES AND INTERIM RULES.

       (a) In General.--Except as otherwise provided in this 
     section, this title and the amendments made by this title 
     shall take effect January 1, 1996.
       (b) Effective Date of Gift Prohibition.--Section 1106 shall 
     take effect on January 3, 1995. Beginning on that date, and 
     for the remainder of calendar year 1995, such section shall 
     apply to any gift provided by a lobbyist or an agent of a 
     foreign principal registered under the Federal Regulation of 
     Lobbying Act or the Foreign Agents Registration Act, 
     including any person registered under such Acts as of July 1, 
     1994, or thereafter.
       (c) Establishment of Office.--Sections 1107 and 1118 shall 
     take effect on the date of enactment of this Act.
       (d) Repeals and Amendments.--The repeals and amendments 
     made under sections 1113, 1114, 1115, and 1116 shall take 
     effect as provided under subsection (a), except that such 
     repeals and amendments--
       (1) shall not affect any proceeding or suit commenced 
     before the effective date under subsection (a), and in all 
     such proceedings or suits, proceedings shall be had, appeals 
     taken, and judgments rendered in the same manner and with the 
     same effect as if this title had not been enacted; and
       (2) shall not affect the requirements of Federal agencies 
     to compile, publish, and retain information filed or received 
     before the effective date of such repeals and amendments.
       (e) Regulations.--Proposed regulations required to 
     implement this title shall be published for public comment no 
     later than 270 days after the date of the enactment of this 
     Act. No later than 1 year after the date of the enactment of 
     this Act, final regulations required to implement this title 
     shall be published.
       (f) Phase-In Period.--No penalty shall be assessed by the 
     Director under section 1109(e) for a violation of this title, 
     other than for a violation of section 1106, which occurs 
     during the first semiannual reporting period under section 
     1105 after the effective date prescribed by subsection (a).
       (g) Interim Director.--Within 30 days after the date of the 
     enactment of this Act, the President shall designate an 
     interim Director of the Office of Lobbying Registration and 
     Public Disclosure, who shall serve at the pleasure of the 
     President until a Director of such Office has been nominated 
     by the President and confirmed by the Senate. The interim 
     Director may not promulgate final regulations pursuant to 
     section 1107(d) or initiate procedures for alleged violations 
     pursuant to section 1108.
                  TITLE II--CONGRESSIONAL GIFT REFORM

     SEC. 1201. AMENDMENTS TO SENATE RULES.

       Rule XXXV of the Standing Rules of the Senate is amended to 
     read as follows:
       ``1. No Member, officer, or employee of the Senate shall 
     accept a gift, knowing that such gift is provided by a 
     registered lobbyist, a lobbying firm, or an agent of a 
     foreign principal in violation of the Lobbying Disclosure Act 
     of 1994.
       ``2. (a) In addition to the restriction on receiving gifts 
     from registered lobbyists, lobbying firms, and agents of 
     foreign principals provided by paragraph 1 and except as 
     provided in this Rule, no Member, officer, or employee of the 
     Senate shall knowingly accept a gift from any other person.
       ``(b)(1) For the purpose of this Rule, the term `gift' 
     means any gratuity, favor, discount, entertainment, 
     hospitality, loan, forbearance, or other item having monetary 
     value. The term includes gifts of services, training, 
     transportation, lodging, and meals, whether provided in kind, 
     by purchase of a ticket, payment in advance, or reimbursement 
     after the expense has been incurred.
       ``(2) A gift to the spouse or dependent of a Member, 
     officer, or employee (or a gift to any other individual based 
     on that individual's relationship with the Member, officer, 
     or employee) shall be considered a gift to the Member, 
     officer, or employee if it is given with the knowledge and 
     acquiescence of the Member, officer, or employee and the 
     Member, officer, or employee has reason to believe the gift 
     was given because of the official position of the Member, 
     officer, or employee.
       ``(c) The restrictions in subparagraph (a) shall not apply 
     to the following:
       ``(1) Anything for which the Member, officer, or employee 
     pays the market value, or does not use and promptly returns 
     to the donor.
       ``(2) A contribution, as defined in the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431 et seq.) that is lawfully 
     made under that Act, or attendance at a fundraising event 
     sponsored by a political organization described in section 
     527(e) of the Internal Revenue Code of 1986.
       ``(3) Anything provided by an individual on the basis of a 
     personal or family relationship unless the Member, officer, 
     or employee has reason to believe that, under the 
     circumstances, the gift was provided because of the official 
     position of the Member, officer, or employee and not because 
     of the personal or family relationship. The Select Committee 
     on Ethics shall provide guidance on the 
      [[Page S148]] applicability of this clause and examples of 
     circumstances under which a gift may be accepted under this 
     exception.
       ``(4) A contribution or other payment to a legal expense 
     fund established for the benefit of a Member, officer, or 
     employee, that is otherwise lawfully made, if the person 
     making the contribution or payment is identified for the 
     Select Committee on Ethics.
       ``(5) Any food or refreshments which the recipient 
     reasonably believes to have a value of less than $20.
       ``(6) Any gift from another Member, officer, or employee of 
     the Senate or the House of Representatives.
       ``(7) Food, refreshments, lodging, and other benefits--
       ``(A) resulting from the outside business or employment 
     activities (or other outside activities that are not 
     connected to the duties of the Member, officer, or employee 
     as an officeholder) of the Member, officer, or employee, or 
     the spouse of the Member, officer, or employee, if such 
     benefits have not been offered or enhanced because of the 
     official position of the Member, officer, or employee and are 
     customarily provided to others in similar circumstances;
       ``(B) customarily provided by a prospective employer in 
     connection with bona fide employment discussions; or
       ``(C) provided by a political organization described in 
     section 527(e) of the Internal Revenue Code of 1986 in 
     connection with a fundraising or campaign event sponsored by 
     such an organization.
       ``(8) Pension and other benefits resulting from continued 
     participation in an employee welfare and benefits plan 
     maintained by a former employer.
       ``(9) Informational materials that are sent to the office 
     of the Member, officer, or employee in the form of books, 
     articles, periodicals, other written materials, audiotapes, 
     videotapes, or other forms of communication.
       ``(10) Awards or prizes which are given to competitors in 
     contests or events open to the public, including random 
     drawings.
       ``(11) Honorary degrees (and associated travel, food, 
     refreshments, and entertainment) and other bona fide, 
     nonmonetary awards presented in recognition of public service 
     (and associated food, refreshments, and entertainment 
     provided in the presentation of such degrees and awards).
       ``(12) Donations of products from the State that the Member 
     represents that are intended primarily for promotional 
     purposes, such as display or free distribution, and are of 
     minimal value to any individual recipient.
       ``(13) Food, refreshments, and entertainment provided to a 
     Member or an employee of a Member in the Member's home State, 
     subject to reasonable limitations, to be established by the 
     Committee on Rules and Administration.
       ``(14) An item of little intrinsic value such as a greeting 
     card, baseball cap, or a T shirt.
       ``(15) Training (including food and refreshments furnished 
     to all attendees as an integral part of the training) 
     provided to a Member, officer, or employee, if such training 
     is in the interest of the Senate.
       ``(16) Bequests, inheritances, and other transfers at 
     death.
       ``(17) Any item, the receipt of which is authorized by the 
     Foreign Gifts and Decorations Act, the Mutual Educational and 
     Cultural Exchange Act, or any other statute.
       ``(18) Anything which is paid for by the Federal 
     Government, by a State or local government, or secured by the 
     Government under a Government contract.
       ``(19) A gift of personal hospitality of an individual, as 
     defined in section 109(14) of the Ethics in Government Act.
       ``(20) Free attendance at a widely attended event permitted 
     pursuant to subparagraph (d).
       ``(21) Opportunities and benefits which are--
       ``(A) available to the public or to a class consisting of 
     all Federal employees, whether or not restricted on the basis 
     of geographic consideration;
       ``(B) offered to members of a group or class in which 
     membership is unrelated to congressional employment;
       ``(C) offered to members of an organization, such as an 
     employees' association or congressional credit union, in 
     which membership is related to congressional employment and 
     similar opportunities are available to large segments of the 
     public through organizations of similar size;
       ``(D) offered to any group or class that is not defined in 
     a manner that specifically discriminates among Government 
     employees on the basis of branch of Government or type of 
     responsibility, or on a basis that favors those of higher 
     rank or rate of pay;
       ``(E) in the form of loans from banks and other financial 
     institutions on terms generally available to the public; or
       ``(F) in the form of reduced membership or other fees for 
     participation in organization activities offered to all 
     Government employees by professional organizations if the 
     only restrictions on membership relate to professional 
     qualifications.
       ``(22) A plaque, trophy, or other memento of modest value.
       ``(23) Anything for which, in an unusual case, a waiver is 
     granted by the Select Committee on Ethics.
       ``(d)(1) Except as prohibited by paragraph 1, a Member, 
     officer, or employee may accept an offer of free attendance 
     at a widely attended convention, conference, symposium, 
     forum, panel discussion, dinner, viewing, reception, or 
     similar event, provided by the sponsor of the event, if--
       ``(A) the Member, officer, or employee participates in the 
     event as a speaker or a panel participant, by presenting 
     information related to Congress or matters before Congress, 
     or by performing a ceremonial function appropriate to the 
     Member's, officer's, or employee's official position; or
       ``(B) attendance at the event is appropriate to the 
     performance of the official duties or representative function 
     of the Member, officer, or employee.
       ``(2) A Member, officer, or employee who attends an event 
     described in clause (1) may accept a sponsor's unsolicited 
     offer of free attendance at the event for an accompanying 
     individual if others in attendance will generally be 
     similarly accompanied or if such attendance is appropriate to 
     assist in the representation of the Senate.
       ``(3) Except as prohibited by paragraph 1, a Member, 
     officer, or employee, or the spouse or dependent thereof, may 
     accept a sponsor's unsolicited offer of free attendance at a 
     charity event, except that reimbursement for transportation 
     and lodging may not be accepted in connection with the event.
       ``(4) For purposes of this paragraph, the term `free 
     attendance' may include waiver of all or part of a conference 
     or other fee, the provision of local transportation, or the 
     provision of food, refreshments, entertainment, and 
     instructional materials furnished to all attendees as an 
     integral part of the event. The term does not include 
     entertainment collateral to the event, or food or 
     refreshments taken other than in a group setting with all or 
     substantially all other attendees.
       ``(e) No Member, officer, or employee may accept a gift the 
     value of which exceeds $250 on the basis of the personal 
     relationship exception in subparagraph (c)(3) or the close 
     personal friendship exception in section 1106(d) of the 
     Lobbying Disclosure Act of 1994 unless the Select Committee 
     on Ethics issues a written determination that one of such 
     exceptions applies.
       ``(f)(1) The Committee on Rules and Administration is 
     authorized to adjust the dollar amount referred to in 
     subparagraph (c)(5) on a periodic basis, to the extent 
     necessary to adjust for inflation.
       ``(2) The Select Committee on Ethics shall provide guidance 
     setting forth reasonable steps that may be taken by Members, 
     officers, and employees, with a minimum of paperwork and 
     time, to prevent the acceptance of prohibited gifts from 
     lobbyists.
       ``(3) When it is not practicable to return a tangible item 
     because it is perishable, the item may, at the discretion of 
     the recipient, be given to an appropriate charity or 
     destroyed.
       ``3. (a)(1) Except as prohibited by paragraph 1, a 
     reimbursement (including payment in kind) to a Member, 
     officer, or employee for necessary transportation, lodging 
     and related expenses for travel to a meeting, speaking 
     engagement, factfinding trip or similar event in connection 
     with the duties of the Member, officer, or employee as an 
     officeholder shall be deemed to be a reimbursement to the 
     Senate and not a gift prohibited by this Rule, if the Member, 
     officer, or employee--
       ``(A) in the case of an employee, receives advance 
     authorization, from the Member or officer under whose direct 
     supervision the employee works, to accept reimbursement, and
       ``(B) discloses the expenses reimbursed or to be reimbursed 
     and the authorization to the Secretary of the Senate within 
     30 days after the travel is completed.
       ``(2) For purposes of clause (1), events, the activities of 
     which are substantially recreational in nature, shall not be 
     considered to be in connection with the duties of a Member, 
     officer, or employee as an officeholder.
       ``(b) Each advance authorization to accept reimbursement 
     shall be signed by the Member or officer under whose direct 
     supervision the employee works and shall include--
       ``(1) the name of the employee;
       ``(2) the name of the person who will make the 
     reimbursement;
       ``(3) the time, place, and purpose of the travel; and
       ``(4) a determination that the travel is in connection with 
     the duties of the employee as an officeholder and would not 
     create the appearance that the employee is using public 
     office for private gain.
       ``(c) Each disclosure made under subparagraph (a)(1) of 
     expenses reimbursed or to be reimbursed shall be signed by 
     the Member or officer (in the case of travel by that Member 
     or officer) or by the Member or officer under whose direct 
     supervision the employee works (in the case of travel by an 
     employee) and shall include--
       ``(1) a good faith estimate of total transportation 
     expenses reimbursed or to be reimbursed;
       ``(2) a good faith estimate of total lodging expenses 
     reimbursed or to be reimbursed;
       ``(3) a good faith estimate of total meal expenses 
     reimbursed or to be reimbursed;
       ``(4) a good faith estimate of the total of other expenses 
     reimbursed or to be reimbursed;
       ``(5) a determination that all such expenses are necessary 
     transportation, lodging, and related expenses as defined in 
     this paragraph; and
       ``(6) in the case of a reimbursement to a Member or 
     officer, a determination that the travel was in connection 
     with the duties of the Member or officer as an officeholder 
     and would not create the appearance that the 
     [[Page S149]] Member or officer is using public office for 
     private gain.
       ``(d) For the purposes of this paragraph, the term 
     `necessary transportation, lodging, and related expenses'--
       ``(1) includes reasonable expenses that are necessary for 
     travel for a period not exceeding 3 days exclusive of travel 
     time within the United States or 7 days exclusive of travel 
     time outside of the United States unless approved in advance 
     by the Select Committee on Ethics;
       ``(2) is limited to reasonable expenditures for 
     transportation, lodging, conference fees and materials, and 
     food and refreshments, including reimbursement for necessary 
     transportation, whether or not such transportation occurs 
     within the periods described in clause (1);
       ``(3) does not include expenditures for recreational 
     activities, or entertainment other than that provided to all 
     attendees as an integral part of the event; and
       ``(4) may include travel expenses incurred on behalf of 
     either the spouse or a child of the Member, officer, or 
     employee, subject to a determination signed by the Member or 
     officer (or in the case of an employee, the Member or officer 
     under whose direct supervision the employee works) that the 
     attendance of the spouse or child is appropriate to assist in 
     the representation of the Senate.
       ``(e) The Secretary of the Senate shall make available to 
     the public all advance authorizations and disclosures of 
     reimbursement filed pursuant to subparagraph (a) as soon as 
     possible after they are received.''.

     SEC. 1202. AMENDMENTS TO HOUSE RULES.

       Clause 4 of rule XLIII of the Rules of the House of 
     Representatives is amended to read as follows:
       ``4. (a) No Member, officer, or employee of the House of 
     Representatives shall accept a gift, knowing that such gift 
     is provided directly or indirectly by a registered lobbyist, 
     a lobbying firm, or an agent of a foreign principal in 
     violation of the Lobbying Disclosure Act of 1994.
       ``(b) In addition to the restriction on receiving gifts 
     from registered lobbyists, lobbying firms, and agents of 
     foreign principals provided by paragraph (a) and except as 
     provided in this Rule, no Member, officer, or employee of the 
     House of Representatives shall knowingly accept a gift from 
     any other person.
       ``(c)(1) For the purpose of this clause, the term `gift' 
     means any gratuity, favor, discount, entertainment, 
     hospitality, loan, forbearance, or other item having monetary 
     value. The term includes gifts of services, training, 
     transportation, lodging, and meals, whether provided in kind, 
     by purchase of a ticket, payment in advance, or reimbursement 
     after the expense has been incurred.
       ``(2) A gift to the spouse or dependent of a Member, 
     officer, or employee (or a gift to any other individual based 
     on that individual's relationship with the Member, officer, 
     or employee) shall be considered a gift to the Member, 
     officer, or employee if it is given with the knowledge and 
     acquiescence of the Member, officer, or employee and the 
     Member, officer, or employee has reason to believe the gift 
     was given because of the official position of the Member, 
     officer, or employee.
       ``(d) The restrictions in paragraph (b) shall not apply to 
     the following:
       ``(1) Anything for which the Member, officer, or employee 
     pays the market value, or does not use and promptly returns 
     to the donor.
       ``(2) A contribution, as defined in the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431 et seq.) that is lawfully 
     made under that Act, or attendance at a fundraising event 
     sponsored by a political organization described in section 
     527(e) of the Internal Revenue Code of 1986.
       ``(3) Anything provided by an individual on the basis of a 
     personal or family relationship unless the Member, officer, 
     or employee has reason to believe that, under the 
     circumstances, the gift was provided because of the official 
     position of the Member, officer, or employee and not because 
     of the personal or family relationship. The Committee on 
     Standards of Official Conduct shall provide guidance on the 
     applicability of this clause and examples of circumstances 
     under which a gift may be accepted under this exception.
       ``(4) A contribution or other payment to a legal expense 
     fund established for the benefit of a Member, officer, or 
     employee, that is otherwise lawfully made, if the person 
     making the contribution or payment is identified for the 
     Committee on Standards of Official Conduct.
       ``(5) Any food or refreshments which the recipient 
     reasonably believes to have a value of less than $20.
       ``(6) Any gift from another Member, officer, or employee of 
     the Senate or the House of Representatives.
       ``(7) Food, refreshments, lodging, and other benefits--
       ``(A) resulting from the outside business or employment 
     activities (or other outside activities that are not 
     connected to the duties of the Member, officer, or employee 
     as an officeholder) of the Member, officer, or employee, or 
     the spouse of the Member, officer, or employee, if such 
     benefits have not been offered or enhanced because of the 
     official position of the Member, officer, or employee and are 
     customarily provided to others in similar circumstances;
       ``(B) customarily provided by a prospective employer in 
     connection with bona fide employment discussions; or
       ``(C) provided by a political organization described in 
     section 527(e) of the Internal Revenue Code of 1986 in 
     connection with a fundraising or campaign event sponsored by 
     such an organization.
       ``(8) Pension and other benefits resulting from continued 
     participation in an employee welfare and benefits plan 
     maintained by a former employer.
       ``(9) Informational materials that are sent to the office 
     of the Member, officer, or employee in the form of books, 
     articles, periodicals, other written materials, audiotapes, 
     videotapes, or other forms of communication.
       ``(10) Awards or prizes which are given to competitors in 
     contests or events open to the public, including random 
     drawings.
       ``(11) Honorary degrees (and associated travel, food, 
     refreshments, and entertainment) and other bona fide, 
     nonmonetary awards presented in recognition of public service 
     (and associated food, refreshments, and entertainment 
     provided in the presentation of such degrees and awards).
       ``(12) Donations of products from the State that the Member 
     represents that are intended primarily for promotional 
     purposes, such as display or free distribution, and are of 
     minimal value to any individual recipient.
       ``(13) Food, refreshments, and entertainment provided to a 
     Member or an employee of a Member in the Member's home State, 
     subject to reasonable limitations, to be established by the 
     Committee on Standards of Official Conduct.
       ``(14) An item of little intrinsic value such as a greeting 
     card, baseball cap, or a T shirt.
       ``(15) Training (including food and refreshments furnished 
     to all attendees as an integral part of the training) 
     provided to a Member, officer, or employee, if such training 
     is in the interest of the House of Representatives.
       ``(16) Bequests, inheritances, and other transfers at 
     death.
       ``(17) Any item, the receipt of which is authorized by the 
     Foreign Gifts and Decorations Act, the Mutual Educational and 
     Cultural Exchange Act, or any other statute.
       ``(18) Anything which is paid for by the Federal 
     Government, by a State or local government, or secured by the 
     Government under a Government contract.
       ``(19) A gift of personal hospitality of an individual, as 
     defined in section 109(14) of the Ethics in Government Act.
       ``(20) Free attendance at a widely attended event permitted 
     pursuant to paragraph (e).
       ``(21) Opportunities and benefits which are--
       ``(A) available to the public or to a class consisting of 
     all Federal employees, whether or not restricted on the basis 
     of geographic consideration;
       ``(B) offered to members of a group or class in which 
     membership is unrelated to congressional employment;
       ``(C) offered to members of an organization, such as an 
     employees' association or congressional credit union, in 
     which membership is related to congressional employment and 
     similar opportunities are available to large segments of the 
     public through organizations of similar size;
       ``(D) offered to any group or class that is not defined in 
     a manner that specifically discriminates among Government 
     employees on the basis of branch of Government or type of 
     responsibility, or on a basis that favors those of higher 
     rank or rate of pay;
       ``(E) in the form of loans from banks and other financial 
     institutions on terms generally available to the public; or
       ``(F) in the form of reduced membership or other fees for 
     participation in organization activities offered to all 
     Government employees by professional organizations if the 
     only restrictions on membership relate to professional 
     qualifications.
       ``(22) A plaque, trophy, or other memento of modest value.
       ``(23) Anything for which, in exceptional circumstances, a 
     waiver is granted by the Committee on Standards of Official 
     Conduct.
       ``(e)(1) Except as prohibited by paragraph (a), a Member, 
     officer, or employee may accept an offer of free attendance 
     at a widely attended convention, conference, symposium, 
     forum, panel discussion, dinner, viewing, reception, or 
     similar event, provided by the sponsor of the event, if--
       ``(A) the Member, officer, or employee participates in the 
     event as a speaker or a panel participant, by presenting 
     information related to Congress or matters before Congress, 
     or by performing a ceremonial function appropriate to the 
     Member's, officer's, or employee's official position; or
       ``(B) attendance at the event is appropriate to the 
     performance of the official duties or representative function 
     of the Member, officer, or employee.
       ``(2) A Member, officer, or employee who attends an event 
     described in subparagraph (1) may accept a sponsor's 
     unsolicited offer of free attendance at the event for an 
     accompanying individual if others in attendance will 
     generally be similarly accompanied or if such attendance is 
     appropriate to assist in the representation of the House of 
     Representatives.
       ``(3) Except as prohibited by paragraph (a), a Member, 
     officer, or employee, or the spouse or dependent thereof, may 
     accept a sponsor's unsolicited offer of free attendance at a 
     charity event, except that reimbursement for transportation 
     and lodging may not be accepted in connection with the event.
       ``(4) For purposes of this paragraph, the term `free 
     attendance' may include waiver of all or part of a conference 
     or other fee, the 
      [[Page S150]] provision of local transportation, or the 
     provision of food, refreshments, entertainment, and 
     instructional materials furnished to all attendees as an 
     integral part of the event. The term does not include 
     entertainment collateral to the event, or food or 
     refreshments taken other than in a group setting with all or 
     substantially all other attendees.
       ``(f) No Member, officer, or employee may accept a gift the 
     value of which exceeds $250 on the basis of the personal 
     relationship exception in paragraph (d)(3) or the close 
     personal friendship exception in section 1106(d) of the 
     Lobbying Disclosure Act of 1994 unless the Committee on 
     Standards of Official Conduct issues a written determination 
     that one of such exceptions applies.
       ``(g)(1) The Committee on Standards of Official Conduct is 
     authorized to adjust the dollar amount referred to in 
     paragraph (c)(5) on a periodic basis, to the extent necessary 
     to adjust for inflation.
       ``(2) The Committee on Standards of Official Conduct shall 
     provide guidance setting forth reasonable steps that may be 
     taken by Members, officers, and employees, with a minimum of 
     paperwork and time, to prevent the acceptance of prohibited 
     gifts from lobbyists.
       ``(3) When it is not practicable to return a tangible item 
     because it is perishable, the item may, at the discretion of 
     the recipient, be given to an appropriate charity or 
     destroyed.
       ``(h)(1)(A) Except as prohibited by paragraph (a), a 
     reimbursement (including payment in kind) to a Member, 
     officer, or employee for necessary transportation, lodging 
     and related expenses for travel to a meeting, speaking 
     engagement, factfinding trip or similar event in connection 
     with the duties of the Member, officer, or employee as an 
     officeholder shall be deemed to be a reimbursement to the 
     House of Representatives and not a gift prohibited by this 
     paragraph, if the Member, officer, or employee--
       ``(i) in the case of an employee, receives advance 
     authorization, from the Member or officer under whose direct 
     supervision the employee works, to accept reimbursement, and
       ``(ii) discloses the expenses reimbursed or to be 
     reimbursed and the authorization to the Clerk of the House of 
     Representatives within 30 days after the travel is completed.
       ``(B) For purposes of clause (A), events, the activities of 
     which are substantially recreational in nature, shall not be 
     considered to be in connection with the duties of a Member, 
     officer, or employee as an officeholder.
       ``(2) Each advance authorization to accept reimbursement 
     shall be signed by the Member or officer under whose direct 
     supervision the employee works and shall include--
       ``(A) the name of the employee;
       ``(B) the name of the person who will make the 
     reimbursement;
       ``(C) the time, place, and purpose of the travel; and
       ``(D) a determination that the travel is in connection with 
     the duties of the employee as an officeholder and would not 
     create the appearance that the employee is using public 
     office for private gain.
       ``(3) Each disclosure made under subparagraph (1)(A) of 
     expenses reimbursed or to be reimbursed shall be signed by 
     the Member or officer (in the case of travel by that Member 
     or officer) or by the Member or officer under whose direct 
     supervision the employee works (in the case of travel by an 
     employee) and shall include--
       ``(A) a good faith estimate of total transportation 
     expenses reimbursed or to be reimbursed;
       ``(B) a good faith estimate of total lodging expenses 
     reimbursed or to be reimbursed;
       ``(C) a good faith estimate of total meal expenses 
     reimbursed or to be reimbursed;
       ``(D) a good faith estimate of the total of other expenses 
     reimbursed or to be reimbursed;
       ``(E) a determination that all such expenses are necessary 
     transportation, lodging, and related expenses as defined in 
     this paragraph; and
       ``(F) in the case of a reimbursement to a Member or 
     officer, a determination that the travel was in connection 
     with the duties of the Member or officer as an officeholder 
     and would not create the appearance that the Member or 
     officer is using public office for private gain.
       ``(4) For the purposes of this paragraph, the term 
     `necessary transportation, lodging, and related expenses'--
       ``(A) includes reasonable expenses that are necessary for 
     travel--
       ``(i) for a period not exceeding 4 days including travel 
     time within the United States or 7 days in addition to travel 
     time outside the United States; and
       ``(ii) within 24 hours before or after participation in an 
     event in the United States or within 48 hours before or after 
     participation in an event outside the United States,

     unless approved in advance by the Committee on Standards of 
     Official Conduct;
       ``(B) is limited to reasonable expenditures for 
     transportation, lodging, conference fees and materials, and 
     food and refreshments, including reimbursement for necessary 
     transportation, whether or not such transportation occurs 
     within the periods described in clause (A);
       ``(C) does not include expenditures for recreational 
     activities or entertainment other than that provided to all 
     attendees as an integral part of the event; and
       ``(D) may include travel expenses incurred on behalf of 
     either the spouse or a child of the Member, officer, or 
     employee, subject to a determination signed by the Member or 
     officer (or in the case of an employee, the Member or officer 
     under whose direct supervision the officer or employee works) 
     that the attendance of the spouse or child is appropriate to 
     assist in the representation of the House of Representatives.
       ``(5) The Clerk of the House of Representatives shall make 
     available to the public all advance authorizations and 
     disclosures of reimbursement filed pursuant to subparagraph 
     (1) as soon as possible after they are received.''.

     SEC. 1203. MISCELLANEOUS PROVISIONS.

       (a) Amendments to the Ethics in Government Act.--Section 
     102(a)(2)(B) of the Ethics in Government Act (5 U.S.C. 102, 
     App. 6) is amended by adding at the end thereof the 
     following: ``Reimbursements accepted by a Federal agency 
     pursuant to section 1353 of title 31, United States Code, or 
     deemed accepted by the Senate or the House of Representatives 
     pursuant to Rule XXXV of the Standing Rules of the Senate or 
     clause 4 of Rule XLIII of the Rules of the House of 
     Representatives shall be reported as required by such statute 
     or rule and need not be reported under this section.''.
       (b) Repeal of Obsolete Provision.--Section 901 of the 
     Ethics Reform Act of 1989 (2 U.S.C. 31-2) is repealed.
       (c) Senate Provisions.--
       (1) Authority of the committee on rules and 
     administration.--The Senate Committee on Rules and 
     Administration, on behalf of the Senate, may accept gifts 
     provided they do not involve any duty, burden, or condition, 
     or are not made dependent upon some future performance by the 
     United States. The Committee on Rules and Administration is 
     authorized to promulgate regulations to carry out this 
     section.
       (2) Food, refreshments, and entertainment.--The rules on 
     acceptance of food, refreshments, and entertainment provided 
     to a Member of the Senate or an employee of such a Member in 
     the Member's home State before the adoption of reasonable 
     limitations by the Committee on Rules and Administration 
     shall be the rules in effect on the day before the effective 
     date of this title.
       (d) House Provision.--The rules on acceptance of food, 
     refreshments, and entertainment provided to a Member of the 
     House of Representatives or an employee of such a Member in 
     the Member's home State before the adoption of reasonable 
     limitations by the Committee on Standards of Official Conduct 
     shall be the rules in effect on the day before the effective 
     date of this title.

     SEC. 1204. EXERCISE OF CONGRESSIONAL RULEMAKING POWERS.

       Sections 1201, 1202, 1203(c), and 1203(d) of this title are 
     enacted by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively, and pursuant 
     to section 7353(b)(1) of title 5, United States Code, and 
     accordingly, they shall be considered as part of the rules of 
     each House, respectively, or of the House to which they 
     specifically apply, and such rules shall supersede other 
     rules only to the extent that they are inconsistent 
     therewith; and
       (2) with full recognition of the constitutional right of 
     either House to change such rules (insofar as they relate to 
     that House) at any time and in the same manner and to the 
     same extent as in the case of any other rule of that House.

     SEC. 1205. EFFECTIVE DATE.

       This title and the amendments made by this subtitle shall 
     take effect on May 31, 1995.
                  DIVISION C--CAMPAIGN FINANCE REFORM
   TITLE I--CONGRESSIONAL CAMPAIGN SPENDING LIMIT AND ELECTION REFORM

     SEC. 10000. SHORT TITLE; AMENDMENT OF CAMPAIGN ACT; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This title may be cited as the 
     ``Congressional Campaign Spending Limit and Election Reform 
     Act of 1995''.
       (b) Amendment of FECA.--When used in this title, the term 
     ``FECA'' means the Federal Election Campaign Act of 1971 (2 
     U.S.C. 431 et seq.).
       (c) Table of Contents.--

                  DIVISION C--CAMPAIGN FINANCE REFORM

   TITLE X--CONGRESSIONAL CAMPAIGN SPENDING LIMIT AND ELECTION REFORM

Sec. 10000. Short title; amendment of Campaign Act; table of contents.

         Subtitle A--Control of Congressional Campaign Spending

     Part I--Senate Election Campaign Spending Limits and Benefits

Sec. 10001. Senate spending limits and benefits.
Sec. 10002. Ban on activities of political action committees in Senate 
              elections.
Sec. 10003. Reporting requirements.
Sec. 10004. Disclosure by noneligible candidates.
Sec. 10005. Excess campaign funds of Senate candidates.

                      Part II--General Provisions

Sec. 10011. Broadcast rates and preemption.
Sec. 10012. Reporting requirements for certain independent 
              expenditures.
Sec. 10013. Campaign advertising amendments.
[[Page S151]] Sec. 10014. Definitions.
Sec. 10015. Provisions relating to franked mass mailings.

                  Subtitle B--Independent Expenditures

Sec. 10021. Clarification of definitions relating to independent 
              expenditures.
Sec. 10022. Equal broadcast time.

                        Subtitle C--Expenditures

                     Part I--Personal Loans; Credit

Sec. 10031. Personal contributions and loans.
Sec. 10032. Extensions of credit.

    Part II--Provisions Relating to Soft Money of Political Parties

Sec. 10033. Definitions.
Sec. 10034. Contributions to political party committees.
Sec. 10035. Provisions relating to national, State, and local party 
              committees.
Sec. 10036. Restrictions on fundraising by candidates and 
              officeholders.
Sec. 10037. Reporting requirements.

                       Subtitle D--Contributions

Sec. 10041. Contributions through intermediaries and conduits; 
              prohibition on certain contributions by lobbyists.
Sec. 10042. Contributions by dependents not of voting age.
Sec. 10043. Contributions to candidates from State and local committees 
              of political parties to be aggregated.
Sec. 10044. Contributions and expenditures using money secured by 
              physical force or other intimidation.
Sec. 10045. Prohibition of acceptance by a candidate of cash 
              contributions from any one person aggregating more than 
              $100.

                       Subtitle E--Miscellaneous

Sec. 10051. Prohibition of leadership committees.
Sec. 10052. Telephone voting by persons with disabilities.
Sec. 10053. Certain tax-exempt organizations not subject to corporate 
              limits.
Sec. 10054. Aiding and abetting violations of FECA.
Sec. 10055. Campaign advertising that refers to an opponent.
Sec. 10056. Limit on congressional use of the franking privilege.

              Subtitle F--Effective Dates; Authorizations

Sec. 10061. Effective date.
Sec. 10062. Budget neutrality.
Sec. 10063. Severability.
Sec. 10064. Expedited review of constitutional issues.
Sec. 10065. Regulations.
         Subtitle A--Control of Congressional Campaign Spending

     PART I--SENATE ELECTION CAMPAIGN SPENDING LIMITS AND BENEFITS

     SEC. 10001. SENATE SPENDING LIMITS AND BENEFITS.

       (a) In General.--FECA is amended by adding at the end 
     thereof the following new title:
 ``TITLE V--SPENDING LIMITS AND BENEFITS FOR SENATE ELECTION CAMPAIGNS

     ``SEC. 501. CANDIDATES ELIGIBLE TO RECEIVE BENEFITS.

       ``(a) In General.--For purposes of this title, a candidate 
     is an eligible Senate candidate if the candidate--
       ``(1) meets the primary and general election filing 
     requirements of subsections (b) and (c);
       ``(2) meets the primary and runoff election expenditure 
     limits of subsection (d); and
       ``(3) meets the threshold contribution requirements of 
     subsection (e).
       ``(b) Primary Filing Requirements.--(1) The requirements of 
     this subsection are met if the candidate files with the 
     Secretary of the Senate a declaration that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) will meet the primary and runoff election expenditure 
     limits of subsection (d); and
       ``(ii) will only accept contributions for the primary and 
     runoff elections which do not exceed such limits;
       ``(B) the candidate and the candidate's authorized 
     committees will meet the general election expenditure limit 
     under section 502(b);
       ``(C) the candidate and the candidate's authorized 
     committees will meet the limitation on expenditures from 
     personal funds under section 502(a); and
       ``(D) the candidate and the candidate's authorized 
     committees will meet the closed captioning requirements of 
     section 509.
       ``(2) The declaration under paragraph (1) shall be filed 
     not later than the date the candidate files as a candidate 
     for the primary election.
       ``(c) General Election Filing Requirements.--(1) The 
     requirements of this subsection are met if the candidate 
     certifies to the Secretary of the Senate, under penalty of 
     perjury, that--
       ``(A) the candidate and the candidate's authorized 
     committees--
       ``(i) met the primary and runoff election expenditure 
     limits under subsection (d); and
       ``(ii) did not accept contributions for the primary or 
     runoff election in excess of the primary or runoff 
     expenditure limit under subsection (d), whichever is 
     applicable, reduced by any amounts transferred to this 
     election cycle from a preceding election cycle;
       ``(B) the candidate met the threshold contribution 
     requirement under subsection (e), and that only allowable 
     contributions were taken into account in meeting such 
     requirement;
       ``(C) at least one other candidate has qualified for the 
     same general election ballot under the law of the State 
     involved;
       ``(D) such candidate and the authorized committees of such 
     candidate--
       ``(i) except as otherwise provided by this title, will not 
     make expenditures which exceed the general election 
     expenditure limit under section 502(b);
       ``(ii) will not accept any contributions in violation of 
     section 315;
       ``(iii) except as otherwise provided by this title, will 
     not accept any contribution for the general election involved 
     to the extent that such contribution would cause the 
     aggregate amount of such contributions to exceed the sum of 
     the amount of the general election expenditure limit under 
     section 502(b) and the amounts described in subsections (c), 
     (d), and (e) of section 502, reduced by any amounts 
     transferred to this election cycle from a previous election 
     cycle and not taken into account under subparagraph (A)(ii);
       ``(iv) will deposit all payments received under this title 
     in an account insured by the Federal Deposit Insurance 
     Corporation from which funds may be withdrawn by check or 
     similar means of payment to third parties;
       ``(v) will furnish campaign records, evidence of 
     contributions, and other appropriate information to the 
     Commission;
       ``(vi) will cooperate in the case of any audit and 
     examination by the Commission under section 505 and will pay 
     any amounts required to be paid under that section; and
       ``(vii) will meet the closed captioning requirements of 
     section 509; and
       ``(E) the candidate intends to make use of the benefits 
     provided under section 503.
       ``(2) The certification under paragraph (1) shall be filed 
     not later than 7 days after the earlier of--
       ``(A) the date the candidate qualifies for the general 
     election ballot under State law; or
       ``(B) if, under State law, a primary or runoff election to 
     qualify for the general election ballot occurs after 
     September 1, the date the candidate wins the primary or 
     runoff election.
       ``(d) Primary and Runoff Expenditure Limits.--(1) The 
     requirements of this subsection are met if:
       ``(A) The candidate or the candidate's authorized 
     committees did not make expenditures for the primary election 
     in excess of the lesser of--
       ``(i) 67 percent of the general election expenditure limit 
     under section 502(b); or
       ``(ii) $2,750,000.
       ``(B) The candidate and the candidate's authorized 
     committees did not make expenditures for any runoff election 
     in excess of 20 percent of the general election expenditure 
     limit under section 502(b).
       ``(2) The limitations under subparagraphs (A) and (B) of 
     paragraph (1) with respect to any candidate shall be 
     increased by the aggregate amount of independent expenditures 
     in opposition to, or on behalf of any opponent of, such 
     candidate during the primary or runoff election period, 
     whichever is applicable, which are required to be reported to 
     the Secretary of the Senate or to the Commission with respect 
     to such period under section 304.
       ``(3)(A) If the contributions received by the candidate or 
     the candidate's authorized committees for the primary 
     election or runoff election exceed the expenditures for 
     either such election, such excess contributions shall be 
     treated as contributions for the general election and 
     expenditures for the general election may be made from such 
     excess contributions.
       ``(B) Subparagraph (A) shall not apply to the extent that 
     such treatment of excess contributions--
       ``(i) would result in the violation of any limitation under 
     section 315; or
       ``(ii) would cause the aggregate contributions received for 
     the general election to exceed the limits under subsection 
     (c)(1)(D)(iii).
       ``(e) Threshold Contribution Requirements.--(1) The 
     requirements of this subsection are met if the candidate and 
     the candidate's authorized committees have received allowable 
     contributions during the applicable period in an amount at 
     least equal to 5 percent of the general election expenditure 
     limit under section 502(b).
       ``(2) For purposes of this section and subsections (b) and 
     (c) of section 503--
       ``(A) The term `allowable contributions' means 
     contributions which are made as gifts of money by an 
     individual pursuant to a written instrument identifying such 
     individual as the contributor.
       ``(B) The term `allowable contributions' shall not 
     include--
       ``(i) contributions made directly or indirectly through an 
     intermediary or conduit which are treated as made by such 
     intermediary or conduit under section 315(a)(8)(B);
       ``(ii) contributions from any individual during the 
     applicable period to the extent such contributions exceed 
     $250; or
       ``(iii) contributions from individuals residing outside the 
     candidate's State.
     Clauses (ii) and (iii) shall not apply for purposes of 
     section 503(b).
     [[Page S152]]   ``(3) For purposes of this subsection and 
     subsections (b) and (c) of section 503, the term `applicable 
     period' means--
       ``(A) the period beginning on January 1 of the calendar 
     year preceding the calendar year of the general election 
     involved and ending on--
       ``(i) the date on which the certification under subsection 
     (c) is filed by the candidate; or
       ``(ii) for purposes of subsections (b) and (c) of section 
     503, the date of such general election; or
       ``(B) in the case of a special election for the office of 
     United States Senator, the period beginning on the date the 
     vacancy in such office occurs and ending on the date of the 
     general election involved.
       ``(f) Indexing.--The $2,750,000 amount under subsection 
     (d)(1) shall be increased as of the beginning of each 
     calendar year based on the increase in the price index 
     determined under section 315(c), except that, for purposes of 
     subsection (d)(1) and section 502(b)(3), the base period 
     shall be calendar year 1996.

     ``SEC. 502. LIMITATIONS ON EXPENDITURES.

       ``(a) Limitation on Use of Personal Funds.--(1) The 
     aggregate amount of expenditures which may be made during an 
     election cycle by an eligible Senate candidate or such 
     candidate's authorized committees from the sources described 
     in paragraph (2) shall not exceed $25,000.
       ``(2) A source is described in this paragraph if it is--
       ``(A) personal funds of the candidate and members of the 
     candidate's immediate family; or
       ``(B) personal debt incurred by the candidate and members 
     of the candidate's immediate family.
       ``(b) General Election Expenditure Limit.--(1) Except as 
     otherwise provided in this title, the aggregate amount of 
     expenditures for a general election by an eligible Senate 
     candidate and the candidate's authorized committees shall not 
     exceed the lesser of--
       ``(A) $5,500,000; or
       ``(B) the greater of--
       ``(i) $1,200,000; or
       ``(ii) $400,000; plus
       ``(I) 30 cents multiplied by the voting age population not 
     in excess of 4,000,000; and
       ``(II) 25 cents multiplied by the voting age population in 
     excess of 4,000,000.
       ``(2) In the case of an eligible Senate candidate in a 
     State which has no more than 1 transmitter for a commercial 
     Very High Frequency (VHF) television station licensed to 
     operate in that State, paragraph (1)(B)(ii) shall be applied 
     by substituting--
       ``(A) `80 cents' for `30 cents' in subclause (I); and
       ``(B) `70 cents' for `25 cents' in subclause (II).
       ``(3) The amount otherwise determined under paragraph (1) 
     for any calendar year shall be increased by the same 
     percentage as the percentage increase for such calendar year 
     under section 501(f) (relating to indexing).
       ``(c) Legal and Accounting Compliance Fund.--(1) The 
     limitation under subsection (b) shall not apply to qualified 
     legal and accounting expenditures made by a candidate or the 
     candidate's authorized committees or a Federal officeholder 
     from a legal and accounting compliance fund meeting the 
     requirements of paragraph (2).
       ``(2) A legal and accounting compliance fund meets the 
     requirements of this paragraph if--
       ``(A) the fund is established with respect to qualified 
     legal and accounting expenditures incurred with respect to a 
     particular general election;
       ``(B) the only amounts transferred to the fund are amounts 
     received in accordance with the limitations, prohibitions, 
     and reporting requirements of this Act;
       ``(C) the aggregate amounts transferred to, and 
     expenditures made from, the fund with respect to the election 
     cycle do not exceed the sum of--
       ``(i) the lesser of--
       ``(I) 15 percent of the general election expenditure limit 
     under subsection (b) for the general election for which the 
     fund was established; or
       ``(II) $300,000; plus
       ``(ii) the amount determined under paragraph (4); and
       ``(D) no funds received by the candidate pursuant to 
     section 503(a)(3) may be transferred to the fund.
       ``(3) For purposes of this subsection, the term `qualified 
     legal and accounting expenditures' means the following:
       ``(A) Any expenditures for costs of legal and accounting 
     services provided in connection with--
       ``(i) any administrative or court proceeding initiated 
     pursuant to this Act for the general election for which the 
     legal and accounting fund was established; or
       ``(ii) the preparation of any documents or reports required 
     by this Act or the Commission.
       ``(B) Any expenditures for legal and accounting services 
     provided in connection with the general election for which 
     the legal and accounting compliance fund was established to 
     ensure compliance with this Act with respect to the election 
     cycle for such general election.
       ``(4)(A) If, after a general election, a candidate 
     determines that the qualified legal and accounting 
     expenditures will exceed the limitation under paragraph 
     (2)(C)(i), the candidate may petition the Commission by 
     filing with the Secretary of the Senate a request for an 
     increase in such limitation. The Commission shall authorize 
     an increase in such limitation in the amount (if any) by 
     which the Commission determines the qualified legal and 
     accounting expenditures exceed such limitation. Such 
     determination shall be subject to judicial review under 
     section 506.
       ``(B) Except as provided in section 315, any contribution 
     received or expenditure made pursuant to this paragraph shall 
     not be taken into account for any contribution or expenditure 
     limit applicable to the candidate under this title.
       ``(5) Any funds in a legal and accounting compliance fund 
     shall be treated for purposes of this Act as a separate 
     segregated fund, except that any portion of the fund not used 
     to pay qualified legal and accounting expenditures, and not 
     transferred to a legal and accounting compliance fund for the 
     election cycle for the next general election, shall be 
     treated in the same manner as other campaign funds for 
     purposes of section 313(b).
       ``(d) Payment of Taxes on Earnings.--The limitation under 
     subsection (b) shall not apply to any expenditure for 
     Federal, State, or local income taxes on the earnings of a 
     candidate's authorized committees.
       ``(e) Certain Expenses.--In the case of an eligible Senate 
     candidate who holds a Federal office, the limitation under 
     subsection (b) shall not apply to ordinary and necessary 
     expenses of travel of such individual and the individual's 
     spouse and children between Washington, D.C. and the 
     individual's State in connection with the individual's 
     activities as a holder of Federal office.
       ``(f) Expenditures.--For purposes of this title, the term 
     `expenditure' has the meaning given such term by section 
     301(9), except that in determining any expenditures made by, 
     or on behalf of, a candidate or a candidate's authorized 
     committees, section 301(9)(B) shall be applied without regard 
     to clause (ii) thereof.

     ``SEC. 503. BENEFITS ELIGIBLE CANDIDATE ENTITLED TO RECEIVE.

       ``(a) In General.--An eligible Senate candidate shall be 
     entitled to--
       ``(1) the broadcast media rates provided under section 
     315(b) of the Communications Act of 1934; and
       ``(2) payments in an amount equal to--
       ``(A) the excess expenditure amount determined under 
     subsection (b); and
       ``(B) the independent expenditure amount determined under 
     subsection (c).
       ``(b) Excess Expenditure Amount.--(1) For purposes of 
     subsection (a)(2)(A), except as provided in section 510(b), 
     the amount determined under this subsection is, in the case 
     of an eligible Senate candidate who has an opponent in the 
     general election who receives contributions, or makes (or 
     obligates to make) expenditures, for such election in excess 
     of the general election expenditure limit under section 
     502(b), the excess expenditure amount.
       ``(2) For purposes of paragraph (1), the excess expenditure 
     amount is the amount determined as follows:
       ``(A) In the case of a major party candidate, an amount 
     equal to the sum of--
       ``(i) if the excess described in paragraph (1) is less than 
     133\1/3\ percent of the general election expenditure limit 
     under section 502(b), an amount equal to one-third of such 
     limit applicable to the eligible Senate candidate for the 
     election; plus
       ``(ii) if such excess equals or exceeds 133\1/3\ percent 
     but is less than 166\2/3\ percent of such limit, an amount 
     equal to one-third of such limit; plus
       ``(iii) if such excess equals or exceeds 166\2/3\ percent 
     of such limit, an amount equal to one-third of such limit.
       ``(B) In the case of an eligible Senate candidate who is 
     not a major party candidate, an amount equal to the least of 
     the following:
       ``(i) The allowable contributions of the eligible Senate 
     candidate during the applicable period in excess of the 
     threshold contribution requirement under section 501(e).
       ``(ii) 50 percent of the general election expenditure limit 
     applicable to the eligible Senate candidate under section 
     502(b).
       ``(iii) The excess described in paragraph (1).
       ``(c) Independent Expenditure Amount.--For purposes of 
     subsection (a)(2)(B), the amount determined under this 
     subsection is the total amount of independent expenditures 
     made, or obligated to be made, during the general election 
     period by 1 or more persons in opposition to, or on behalf of 
     an opponent of, an eligible Senate candidate which are 
     required to be reported by such persons under section 304(c) 
     with respect to the general election period and are certified 
     by the Commission under section 304(c).
       ``(d) Waiver of Expenditure and Contribution Limits.--
     (1)(A) An eligible Senate candidate who receives payments 
     under subsection (a)(2) may make expenditures from such 
     payments to defray expenditures for the general election 
     without regard to the general election expenditure limit 
     under section 502(b).
       ``(B) In the case of an eligible Senate candidate who is 
     not a major party candidate, the general election expenditure 
     limit under section 502(b) with respect to such candidate 
     shall be increased by the amount (if any) by which the excess 
     described in subsection (b)(1) exceeds the amount determined 
     under subsection (b)(2)(B) with respect to such candidate.
       ``(2)(A) An eligible Senate candidate who receives benefits 
     under this section may make expenditures for the general 
     election 
      [[Page S153]] without regard to clause (i) of section 
     501(c)(1)(D) or subsection (a) or (b) of section 502 if any 
     one of the eligible Senate candidate's opponents who is not 
     an eligible Senate candidate either raises aggregate 
     contributions, or makes or becomes obligated to make 
     aggregate expenditures, for the general election that exceed 
     200 percent of the general election expenditure limit 
     applicable to the eligible Senate candidate under section 
     502(b).
       ``(B) The amount of the expenditures which may be made by 
     reason of subparagraph (A) shall not exceed 100 percent of 
     the general election expenditure limit under section 502(b).
       ``(3)(A) A candidate who receives benefits under this 
     section may receive contributions for the general election 
     without regard to clause (iii) of section 501(c)(1)(D) if--
       ``(i) a major party candidate in the same general election 
     is not an eligible Senate candidate; or
       ``(ii) any other candidate in the same general election who 
     is not an eligible Senate candidate raises aggregate 
     contributions, or makes or becomes obligated to make 
     aggregate expenditures, for the general election that exceed 
     75 percent of the general election expenditure limit 
     applicable to such other candidate under section 502(b).
       ``(B) The amount of contributions which may be received by 
     reason of subparagraph (A) shall not exceed 100 percent of 
     the general election expenditure limit under section 502(b).
       ``(e) Use of Payments.--Payments received by a candidate 
     under subsection (a)(2) shall be used to defray expenditures 
     incurred with respect to the general election period for the 
     candidate. Such payments shall not be used--
       ``(1) except as provided in paragraph (4), to make any 
     payments, directly or indirectly, to such candidate or to any 
     member of the immediate family of such candidate;
       ``(2) to make any expenditure other than expenditures to 
     further the general election of such candidate;
       ``(3) to make any expenditures which constitute a violation 
     of any law of the United States or of the State in which the 
     expenditure is made; or
       ``(4) subject to the provisions of section 315(j), to repay 
     any loan to any person except to the extent the proceeds of 
     such loan were used to further the general election of such 
     candidate.

     ``SEC. 504. CERTIFICATION BY COMMISSION.

       ``(a) In General.--(1) The Commission shall certify to any 
     candidate meeting the requirements of section 501 that such 
     candidate is an eligible Senate candidate entitled to 
     benefits under this title. The Commission shall revoke such 
     certification if it determines a candidate fails to continue 
     to meet such requirements.
       ``(2) No later than 48 hours after an eligible Senate 
     candidate files a request with the Secretary of the Senate to 
     receive benefits under section 503, the Commission shall 
     issue a certification stating whether such candidate is 
     eligible for payments under this title and the amount of such 
     payments to which such candidate is entitled. The request 
     referred to in the preceding sentence shall contain--
       ``(A) such information and be made in accordance with such 
     procedures as the Commission may provide by regulation; and
       ``(B) a verification signed by the candidate and the 
     treasurer of the principal campaign committee of such 
     candidate stating that the information furnished in support 
     of the request, to the best of their knowledge, is correct 
     and fully satisfies the requirements of this title.
       ``(b) Determinations by Commission.--All determinations 
     (including certifications under subsection (a)) made by the 
     Commission under this title shall be final and conclusive, 
     except to the extent that they are subject to examination and 
     audit by the Commission under section 505 and judicial review 
     under section 506.

     ``SEC. 505. EXAMINATIONS AND AUDITS; REPAYMENTS; CIVIL 
                   PENALTIES.

       ``(a) Examinations and Audits.--(1) After each general 
     election, the Commission shall conduct an examination and 
     audit of the campaign accounts of 5 percent of the eligible 
     Senate and House of Representatives candidates, as designated 
     by the Commission through the use of an appropriate 
     statistical method of random selection, to determine whether 
     such candidates have complied with the conditions of 
     eligibility and other requirements of this title. The 
     Commission shall conduct an examination and audit of the 
     accounts of all candidates for election to an office where 
     any eligible candidate for the office is selected for 
     examination and audit.
       ``(2) After each special election involving an eligible 
     candidate, the Commission shall conduct an examination and 
     audit of the campaign accounts of all candidates in the 
     election to determine whether the candidates have complied 
     with the conditions of eligibility and other requirements of 
     this Act.
       ``(3) The Commission may conduct an examination and audit 
     of the campaign accounts of any eligible Senate or House of 
     Representatives candidate in a general election if the 
     Commission determines that there exists reason to believe 
     whether such candidate may have violated any provision of 
     this title.
       ``(b) Excess Payments; Revocation of Status.--(1) If the 
     Commission determines that payments were made to an eligible 
     Senate candidate under this title in excess of the aggregate 
     amounts to which such candidate was entitled, the Commission 
     shall so notify such candidate, and such candidate shall pay 
     an amount equal to the excess.
       ``(2) If the Commission revokes the certification of a 
     candidate as an eligible Senate candidate under section 
     504(a)(1), the Commission shall notify the candidate, and the 
     candidate shall pay an amount equal to the payments received 
     under this title.
       ``(c) Misuse of Benefits.--If the Commission determines 
     that any amount of any benefit made available to an eligible 
     Senate candidate under this title was not used as provided 
     for in this title, the Commission shall so notify such 
     candidate and such candidate shall pay the amount of such 
     benefit.
       ``(d) Excess Expenditures.--If the Commission determines 
     that any eligible Senate candidate who has received benefits 
     under this title has made expenditures which in the aggregate 
     exceed--
       ``(1) the primary or runoff expenditure limit under section 
     501(d); or
       ``(2) the general election expenditure limit under section 
     502(b),

     the Commission shall so notify such candidate and such 
     candidate shall pay an amount equal to the amount of the 
     excess expenditures.
       ``(e) Civil Penalties.--(1) If the Commission determines 
     that a candidate has committed a violation described in 
     subsection (c), the Commission may assess a civil penalty 
     against such candidate in an amount not greater than 200 
     percent of the amount involved.
       ``(2)(A) Low amount of excess expenditures.--Any eligible 
     Senate candidate who makes expenditures that exceed any 
     limitation described in paragraph (1) or (2) of subsection 
     (d) by 2.5 percent or less shall pay an amount equal to the 
     amount of the excess expenditures.
       ``(B) Medium amount of excess expenditures.--Any eligible 
     Senate candidate who makes expenditures that exceed any 
     limitation described in paragraph (1) or (2) of subsection 
     (d) by more than 2.5 percent and less than 5 percent shall 
     pay an amount equal to three times the amount of the excess 
     expenditures.
       ``(C) Large amount of excess expenditures.--Any eligible 
     Senate candidate who makes expenditures that exceed any 
     limitation described in paragraph (1) or (2) of subsection 
     (d) by 5 percent or more shall pay an amount equal to the sum 
     of--
       ``(i) three times the amount of the excess expenditures 
     plus an additional amount determined by the Commission, plus
       ``(ii) if the Commission determines such excess 
     expenditures were willful, an amount equal to the benefits 
     the candidate received under this title.
       ``(f) Unexpended Funds.--Any amount received by an eligible 
     Senate candidate under this title and not expended on or 
     before the date of the general election shall be repaid 
     within 30 days of the election, except that a reasonable 
     amount may be retained for a period not exceeding 120 days 
     after the date of the general election for the liquidation of 
     all obligations to pay expenditures for the general election 
     incurred during the general election period. At the end of 
     such 120-day period, any unexpended funds received under this 
     title shall be promptly repaid.
       ``(g) Payments Returned to Source.--Any payment, repayment, 
     or civil penalty required by this section shall be paid to 
     the entity from which benefits under this title were paid to 
     the eligible Senate candidate.
       ``(h) Limit on Period for Notification.--No notification 
     shall be made by the Commission under this section with 
     respect to an election more than three years after the date 
     of such election.

     ``SEC. 506. JUDICIAL REVIEW.

       ``(a) Judicial Review.--Any agency action by the Commission 
     made under the provisions of this title shall be subject to 
     review by the United States Court of Appeals for the District 
     of Columbia Circuit upon petition filed in such court within 
     thirty days after the agency action by the Commission for 
     which review is sought. It shall be the duty of the Court of 
     Appeals, ahead of all matters not filed under this title, to 
     advance on the docket and expeditiously take action on all 
     petitions filed pursuant to this title.
       ``(b) Application of Title 5.--The provisions of chapter 7 
     of title 5, United States Code, shall apply to judicial 
     review of any agency action by the Commission.
       ``(c) Agency Action.--For purposes of this section, the 
     term `agency action' has the meaning given such term by 
     section 551(13) of title 5, United States Code.

     ``SEC. 507. PARTICIPATION BY COMMISSION IN JUDICIAL 
                   PROCEEDINGS.

       ``(a) Appearances.--The Commission is authorized to appear 
     in and defend against any action instituted under this 
     section and under section 506 either by attorneys employed in 
     its office or by counsel whom it may appoint without regard 
     to the provisions of title 5, United States Code, governing 
     appointments in the competitive service, and whose 
     compensation it may fix without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of such title.
       ``(b) Institution of Actions.--The Commission is 
     authorized, through attorneys and counsel described in 
     subsection (a), to institute actions in the district courts 
     of the United States to seek recovery of any amounts 
     determined under this title to be payable to any entity from 
     which benefits under this title were paid.
     [[Page S154]]   ``(c) Injunctive Relief.--The Commission is 
     authorized, through attorneys and counsel described in 
     subsection (a), to petition the courts of the United States 
     for such injunctive relief as is appropriate in order to 
     implement any provision of this title.
       ``(d) Appeals.--The Commission is authorized on behalf of 
     the United States to appeal from, and to petition the Supreme 
     Court for certiorari to review, judgments or decrees entered 
     with respect to actions in which it appears pursuant to the 
     authority provided in this section.

     ``SEC. 508. REPORTS TO CONGRESS; REGULATIONS.

       ``(a) Reports.--The Commission shall, as soon as 
     practicable after each election, submit a full report to the 
     Senate setting forth--
       ``(1) the expenditures (shown in such detail as the 
     Commission determines appropriate) made by each eligible 
     Senate candidate and the authorized committees of such 
     candidate;
       ``(2) the amounts certified by the Commission under section 
     504 as benefits available to each eligible Senate candidate; 
     and
       ``(3) the amount of repayments, if any, required under 
     section 505 and the reasons for each repayment required.

     Each report submitted pursuant to this section shall be 
     printed as a Senate document.
       ``(b) Rules and Regulations.--The Commission is authorized 
     to prescribe (in accordance with the provisions of subsection 
     (c)) such rules and regulations, to conduct such examinations 
     and investigations, and to require the keeping and submission 
     of such books, records, and information, as it deems 
     necessary to carry out the functions and duties imposed on it 
     by this title.
       ``(c) Statement to Senate.--Thirty days before prescribing 
     any rule or regulation under subsection (b), the Commission 
     shall transmit to the Senate a statement setting forth the 
     proposed rule or regulation and containing a detailed 
     explanation and justification of such rule or regulation.

     ``SEC. 509. CLOSED CAPTIONING REQUIREMENT FOR TELEVISION 
                   COMMERCIALS OF ELIGIBLE SENATE CANDIDATES.

       ``No eligible Senate candidate may receive amounts under 
     section 503(a)(3) under section 503(a)(4) unless such 
     candidate has certified that any television commercial 
     prepared or distributed by the candidate will be prepared in 
     a manner that contains, is accompanied by, or otherwise 
     readily permits closed captioning of the oral content of the 
     commercial to be broadcast by way of line 21 of the vertical 
     blanking interval, or by way of comparable successor 
     technologies.

     ``SEC. 510. LIMITATIONS ON PAYMENTS.

       ``(a) Payments Upon Certification.--Upon receipt of a 
     certification from the Commission under section 504, except 
     as provided in subsection (b), the Secretary shall, subject 
     to the availability of appropriations, promptly pay the 
     amount certified by the Commission to the candidate.
       ``(b) Reductions in Payments if Funds Insufficient.--(1) 
     If, at the time of a certification by the Commission under 
     section 504 for payment to an eligible candidate, the 
     Secretary determines that there are not, or may not be, 
     sufficient funds to satisfy the full entitlement of all 
     eligible candidates, the Secretary shall withhold from the 
     amount of such payment such amount as the Secretary 
     determines to be necessary to assure that each eligible 
     candidate will receive the same pro rata share of such 
     candidate's full entitlement.
       ``(2) Amounts withheld under paragraph (1) shall be paid 
     when the Secretary determines that there are sufficient 
     monies to pay all, or a portion thereof, to all eligible 
     candidates from whom amounts have been withheld, except that 
     if only a portion is to be paid, it shall be paid in such 
     manner that each eligible candidate receives an equal pro 
     rata share of such portion.
       ``(3)(A) Not later than December 31 of any calendar year 
     preceding a calendar year in which there is a regularly 
     scheduled general election, the Secretary, after consultation 
     with the Commission, shall make an estimate of--
       ``(i) the amount of monies which will be available to make 
     payments required by this title in the succeeding calendar 
     year; and
       ``(ii) the amount of expenditures which will be required 
     under this title in such calendar year.
       ``(B) If the Secretary determines that there will be 
     insufficient monies to make the expenditures required by this 
     title for any calendar year, the Secretary shall notify each 
     candidate on January 1 of such calendar year (or, if later, 
     the date on which an individual becomes a candidate) of the 
     amount which the Secretary estimates will be the pro rata 
     reduction in each eligible candidate's payments under this 
     subsection. Such notice shall be by registered mail.
       ``(C) The amount of the eligible candidate's contribution 
     limit under section 501(c)(1)(D)(iii) shall be increased by 
     the amount of the estimated pro rata reduction.
       ``(4) The Secretary shall notify the Commission and each 
     eligible candidate by registered mail of any actual reduction 
     in the amount of any payment by reason of this subsection. If 
     the amount of the reduction exceeds the amount estimated 
     under paragraph (3), the candidate's contribution limit under 
     section 501(c)(1)(D)(iii) shall be increased by the amount of 
     such excess.''.
       (b) Effective Dates.--(1) Except as provided in this 
     subsection, the amendment made by subsection (a) shall apply 
     to elections occurring after December 31, 1994.
       (2) For purposes of any expenditure or contribution limit 
     imposed by the amendment made by subsection (a)--
       (A) no expenditure made before January 1, 1996, shall be 
     taken into account, except that there shall be taken into 
     account any such expenditure for goods or services to be 
     provided after such date; and
       (B) all cash, cash items, and Government securities on hand 
     as of January 1, 1996, shall be taken into account in 
     determining whether the contribution limit is met, except 
     that there shall not be taken into account amounts used 
     during the 60-day period beginning on January 1, 1996, to pay 
     for expenditures which were incurred (but unpaid) before such 
     date.
       (c) Effect of Invalidity on Other Provisions of Title.--If 
     section 501, 502, or 503 of title V of FECA (as added by this 
     section), or any part thereof, is held to be invalid, all 
     provisions of, and amendments made by, this title shall be 
     treated as invalid.

     SEC. 10002. BAN ON ACTIVITIES OF POLITICAL ACTION COMMITTEES 
                   IN SENATE ELECTIONS.

       (a) In General.--Title III of FECA (2 U.S.C. 431 et seq.), 
     as amended by section 10044, is amended by adding at the end 
     thereof the following new section:


   ``BAN ON SENATE ELECTION ACTIVITIES BY POLITICAL ACTION COMMITTEES

       ``Sec. 327. (a) Notwithstanding any other provision of this 
     Act, no person other than an individual or a political 
     committee may make contributions, solicit or receive 
     contributions, or make expenditures for the purpose of 
     influencing an election, or nomination for election, to the 
     office of United States Senator.
       ``(b) In the case of individuals who are executive or 
     administrative personnel of an employer--
       ``(1) no contributions may be made by such individuals--
       ``(A) to any political committees established and 
     maintained by any political party for use in an election, or 
     nomination for election, to the office of United States 
     Senator; or
       ``(B) to any candidate for nomination for election, or 
     election, to office of United States Senator or the 
     candidate's authorized committees,

     unless such contributions are not being made at the direction 
     of, or otherwise controlled or influenced by, the employer; 
     and
       ``(2) the aggregate amount of such contributions by all 
     such individuals in any calendar year shall not exceed--
       ``(A) $20,000 in the case of such political committees; and
       ``(B) $5,000 in the case of any such candidate and the 
     candidate's authorized committees.''.
       (b) Candidate's Committees.--(1) Section 315(a) of FECA (2 
     U.S.C. 441a(a)) is amended by adding at the end thereof the 
     following new paragraph:
       ``(9) For the purposes of the limitations provided by 
     paragraphs (1) and (2), any political committee which is 
     established or financed or maintained or controlled by any 
     candidate or Federal officeholder shall be deemed to be an 
     authorized committee of such candidate or officeholder. 
     Nothing in this paragraph shall be construed to permit the 
     establishment, financing, maintenance, or control of any 
     committee which is prohibited by paragraph (3) or (6) of 
     section 302(e).''.
       (2) Section 302(e)(3) of FECA (2 U.S.C. 432) is amended to 
     read as follows:
       ``(3) No political committee that supports or has supported 
     more than one candidate may be designated as an authorized 
     committee, except that--
       ``(A) a candidate for the office of President nominated by 
     a political party may designate the national committee of 
     such political party as the candidate's principal campaign 
     committee, but only if that national committee maintains 
     separate books of account with respect to its functions as a 
     principal campaign committee; and
       ``(B) a candidate may designate a political committee 
     established solely for the purpose of joint fundraising by 
     such candidates as an authorized committee.''.
       (c) Rules Applicable When Ban Not in Effect.--For purposes 
     of the Federal Election Campaign Act of 1971, during any 
     period beginning after the effective date in which the 
     limitation under section 327 of such Act (as added by 
     subsection (a)) is not in effect--
       (1) the amendments made by subsections (a) and (b) shall 
     not be in effect;
       (2) in the case of a candidate for election, or nomination 
     for election, to the office of United States Senator (and 
     such candidate's authorized committees), section 315(a)(2)(A) 
     of FECA (2 U.S.C. 441a(a)(2)(A)) shall be applied by 
     substituting ``$1,000'' for ``$5,000'';
       (3) it shall be unlawful for a multicandidate political 
     committee to make a contribution to a candidate for election, 
     or nomination for election, to the office of United States 
     Senator (or an authorized committee) to the extent that the 
     making or accepting of the contribution will cause the amount 
     of contributions received by the candidate and the 
     candidate's authorized committees from multicandidate 
     political committees to exceed the lesser of--
       (A) $825,000; or
       (B) 20 percent of the aggregate Federal election spending 
     limits applicable to the candidate for the election cycle.

     [[Page S155]] The $825,000 amount in paragraph (3) shall be 
     increased as of the beginning of each calendar year based on 
     the increase in the price index determined under section 
     315(c) of FECA, except that for purposes of paragraph (3), 
     the base period shall be the calendar year 1996. A candidate 
     or authorized committee that receives a contribution from a 
     multicandidate political committee in excess of the amount 
     allowed under paragraph (3) shall return the amount of such 
     excess contribution to the contributor.
       (d) Rule Ensuring Prohibition on Direct Corporate and Labor 
     Spending.--If section 316(a) of the Federal Election Campaign 
     Act of 1971 is held to be invalid by reason of the amendments 
     made by this section, then the amendments made by subsections 
     (a) and (b) of this section shall not apply to contributions 
     by any political committee that is directly or indirectly 
     established, administered, or supported by a connected 
     organization which is a bank, corporation, or other 
     organization described in such section 316(a).
       (e) Restrictions on Contributions to Political 
     Committees.--Paragraphs (1)(D) and (2)(D) of section 315(a) 
     of FECA (2 U.S.C. 441a(a) (1)(D) and (2)(D)), as redesignated 
     by section 312, are each amended by striking ``$5,000'' and 
     inserting ``$1,000''.
       (f) Effective Dates.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall apply to 
     elections (and the election cycles relating thereto) 
     occurring after December 31, 1994.
       (2) In applying the amendments made by this section, there 
     shall not be taken into account--
       (A) contributions made or received before January 1, 1996; 
     or
       (B) contributions made to, or received by, a candidate on 
     or after January 1, 1996, to the extent such contributions 
     are not greater than the excess (if any) of--
       (i) such contributions received by any opponent of the 
     candidate before January 1, 1996, over
       (ii) such contributions received by the candidate before 
     January 1, 1996.

     SEC. 10003. REPORTING REQUIREMENTS.

       Title III of FECA is amended by adding after section 304 
     the following new section:


             ``REPORTING REQUIREMENTS FOR SENATE CANDIDATES

       ``Sec. 304A. (a) Candidate Other Than Eligible Senate 
     Candidate.--(1) Each candidate for the office of United 
     States Senator who does not file a certification with the 
     Secretary of the Senate under section 501(c) shall file with 
     the Secretary of the Senate a declaration as to whether such 
     candidate intends to make expenditures for the general 
     election in excess of the general election expenditure limit 
     applicable to an eligible Senate candidate under section 
     502(b). Such declaration shall be filed at the time provided 
     in section 501(c)(2).
       ``(2) Any candidate for the United States Senate who 
     qualifies for the ballot for a general election--
       ``(A) who is not an eligible Senate candidate under section 
     501; and
       ``(B) who either raises aggregate contributions, or makes 
     or obligates to make aggregate expenditures, for the general 
     election which exceed 75 percent of the general election 
     expenditure limit applicable to an eligible Senate candidate 
     under section 502(b),

     shall file a report with the Secretary of the Senate within 2 
     business days after such contributions have been raised or 
     such expenditures have been made or obligated to be made (or, 
     if later, within 2 business days after the date of 
     qualification for the general election ballot), setting forth 
     the candidate's total contributions and total expenditures 
     for such election as of such date. Thereafter, such candidate 
     shall file additional reports (until such contributions or 
     expenditures exceed 200 percent of such limit) with the 
     Secretary of the Senate within 2 business days after each 
     time additional contributions are raised, or expenditures are 
     made or are obligated to be made, which in the aggregate 
     exceed an amount equal to 10 percent of such limit and after 
     the total contributions or expenditures exceed 100, 133\1/3\, 
     166\2/3\, and 200 percent of such limit.
       ``(3) The Commission--
       ``(A) shall, within 2 business days of receipt of a 
     declaration or report under paragraph (1) or (2), notify each 
     eligible Senate candidate in the election involved about such 
     declaration or report; and
       ``(B) if an opposing candidate has raised aggregate 
     contributions, or made or has obligated to make aggregate 
     expenditures, in excess of the applicable general election 
     expenditure limit under section 502(b), shall certify, 
     pursuant to the provisions of subsection (d), such 
     eligibility for payment of any amount to which such eligible 
     Senate candidate is entitled under section 503(a).
       ``(4) Notwithstanding the reporting requirements under this 
     subsection, the Commission may make its own determination 
     that a candidate in a general election who is not an eligible 
     Senate candidate has raised aggregate contributions, or made 
     or has obligated to make aggregate expenditures, in the 
     amounts which would require a report under paragraph (2). The 
     Commission shall, within 2 business days after making each 
     such determination, notify each eligible Senate candidate in 
     the general election involved about such determination, and 
     shall, when such contributions or expenditures exceed the 
     general election expenditure limit under section 502(b), 
     certify (pursuant to the provisions of subsection (d)) such 
     candidate's eligibility for payment of any amount under 
     section 503(a).
       ``(b) Reports on Personal Funds.--(1) Any candidate for the 
     United States Senate who during the election cycle expends 
     more than the limitation under section 502(a) during the 
     election cycle from his personal funds, the funds of his 
     immediate family, and personal loans incurred by the 
     candidate and the candidate's immediate family shall file a 
     report with the Secretary of the Senate within 2 business 
     days after such expenditures have been made or loans 
     incurred.
       ``(2) The Commission within 2 business days after a report 
     has been filed under paragraph (1) shall notify each eligible 
     Senate candidate in the election involved about each such 
     report.
       ``(3) Notwithstanding the reporting requirements under this 
     subsection, the Commission may make its own determination 
     that a candidate for the United States Senate has made 
     expenditures in excess of the amount under paragraph (1). The 
     Commission within 2 business days after making such 
     determination shall notify each eligible Senate candidate in 
     the general election involved about each such determination.
       ``(c) Candidates for Other Offices.--(1) Each individual--
       ``(A) who becomes a candidate for the office of United 
     States Senator;
       ``(B) who, during the election cycle for such office, held 
     any other Federal, State, or local office or was a candidate 
     for such other office; and
       ``(C) who expended any amount during such election cycle 
     before becoming a candidate for the office of United States 
     Senator which would have been treated as an expenditure if 
     such individual had been such a candidate, including amounts 
     for activities to promote the image or name recognition of 
     such individual,

     shall, within 7 days of becoming a candidate for the office 
     of United States Senator, report to the Secretary of the 
     Senate the amount and nature of such expenditures.
       ``(2) Paragraph (1) shall not apply to any expenditures in 
     connection with a Federal, State, or local election which has 
     been held before the individual becomes a candidate for the 
     office of United States Senator.
       ``(3) The Commission shall, as soon as practicable, make a 
     determination as to whether the amounts included in the 
     report under paragraph (1) were made for purposes of 
     influencing the election of the individual to the office of 
     United States Senator.
       ``(4) The Commission shall certify to the individual and 
     such individual's opponents the amounts the Commission 
     determines to be described in paragraph (3) and such amounts 
     shall be treated as expenditures for purposes of this Act.
       ``(d) Certifications.--Notwithstanding section 504(a), the 
     certification required by this section shall be made by the 
     Commission on the basis of reports filed in accordance with 
     the provisions of this Act, or on the basis of the 
     Commission's own investigation or determination.
       ``(e) Shorter Periods for Reports and Notices During 
     Election Week.--Any report, determination, or notice required 
     by reason of an event occurring during the 7-day period 
     ending with the general election shall be made within 24 
     hours (rather than 2 business days) of the event.
       ``(f) Copies of Reports and Public Inspection.--The 
     Secretary of the Senate shall transmit a copy of any report 
     or filing received under this section or under title V as 
     soon as possible (but no later than 4 working hours of the 
     Commission) after receipt of such report or filing, and shall 
     make such report or filing available for public inspection 
     and copying in the same manner as the Commission under 
     section 311(a)(4), and shall preserve such reports and 
     filings in the same manner as the Commission under section 
     311(a)(5).
       ``(g) Definitions.--For purposes of this section, any term 
     used in this section which is used in title V shall have the 
     same meaning as when used in title V.''.

     SEC. 10004. DISCLOSURE BY NONELIGIBLE CANDIDATES.

       Section 318 of FECA (2 U.S.C. 441d), as amended by section 
     10013, is amended by adding at the end thereof the following:
       ``(f) If a broadcast, cablecast, or other communication is 
     paid for or authorized by a candidate in the general election 
     for the office of United States Senator who is not an 
     eligible Senate candidate, or the authorized committee of 
     such candidate, such communication shall contain the 
     following sentence: `This candidate has not agreed to 
     voluntary campaign spending limits.'.''.

     SEC. 10005. EXCESS CAMPAIGN FUNDS OF SENATE CANDIDATES.

       Section 313 of FECA (2 U.S.C. 439a) is amended--
       (1) by inserting ``(a) In General.--'' before ``Amounts''; 
     and
       (2) by adding at the end the following new subsection:
       ``(b) Return of Excess Campaign Funds.--(1) Except as 
     provided in paragraph (2), and notwithstanding subsection 
     (a), if a candidate for the Senate has amounts in excess of 
     amounts necessary to defray campaign expenditures for any 
     election cycle, including any fines or penalties relating 
     thereto, such candidate shall, not later than 1 year after 
     the date of the general election for such cycle, expend such 
     excess in the manner described in subsection (a) or transfer 
     it to the general fund of the Treasury.
       ``(2) Paragraph (1) shall not apply to any amounts--
     [[Page S156]]   ``(A) transferred to a legal and accounting 
     compliance fund established under section 502(c); or
       ``(B) transferred for use in the next election cycle to the 
     extent such amounts do not exceed 20 percent of the sum of 
     the primary election expenditure limit under section 
     501(d)(1)(A) and the general election expenditure limit under 
     section 502(b) for the election cycle from which the amounts 
     are being transferred.''.

                      PART II--GENERAL PROVISIONS

     SEC. 10011. BROADCAST RATES AND PREEMPTION.

       (a) Broadcast Rates.--Section 315(b) of the Communications 
     Act of 1934 (47 U.S.C. 315(b)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``forty-five'' and inserting ``30''; and
       (B) by striking ``lowest unit charge of the station for the 
     same class and amount of time for the same period'' and 
     inserting ``lowest charge of the station for the same amount 
     of time for the same period on the same date''; and
       (2) by adding at the end the following new sentence:

     ``In the case of an eligible Senate candidate (as defined in 
     section 301(19) of the Federal Election Campaign Act of 
     1971), the charges for the use of a television broadcasting 
     station during the 60-day period referred to in paragraph (1) 
     shall not exceed 50 percent of the lowest charge described in 
     paragraph (1), except that this sentence shall not apply to 
     broadcasts which are to be paid by vouchers which are 
     received under section 503(c)(4) by reason of the independent 
     expenditure amount.''.
       (b) Preemption; Access.--Section 315 of such Act (47 U.S.C. 
     315) is amended by redesignating subsections (c) and (d) as 
     subsections (d) and (e), respectively, and by inserting 
     immediately after subsection (b) the following new 
     subsection:
       ``(c)(1) Except as provided in paragraph (2), a licensee 
     shall not preempt the use, during any period specified in 
     subsection (b)(1), of a broadcasting station by a legally 
     qualified candidate for public office who has purchased and 
     paid for such use pursuant to the provisions of subsection 
     (b)(1).
       ``(2) If a program to be broadcast by a broadcasting 
     station is preempted because of circumstances beyond the 
     control of the broadcasting station, any candidate 
     advertising spot scheduled to be broadcast during that 
     program may also be preempted.''.
       (c) Revocation of License for Failure To Permit Access.--
     Section 312(a)(7) of such Act (47 U.S.C. 312(a)(7)) is 
     amended--
       (1) by striking ``or repeated'';
       (2) by inserting ``or cable system'' after ``broadcasting 
     station''; and
       (3) by striking ``his candidacy'' and inserting ``his or 
     her candidacy, under the same terms, conditions, and business 
     practices as apply to its most favored advertiser''.

     SEC. 10012. REPORTING REQUIREMENTS FOR CERTAIN INDEPENDENT 
                   EXPENDITURES.

       (a) In General.--Section 304 of FECA (2 U.S.C. 434) is 
     amended by adding at the end the following new subsection:
       ``(d) Time for Reporting Certain Expenditures.--(1) Any 
     person making independent expenditures aggregating $1,000 or 
     more after the 20th day, but more than 24 hours, before any 
     election shall file a report of such expenditures within 24 
     hours after such expenditures are made.
       ``(2) Any person making independent expenditures 
     aggregating $10,000 or more at any time up to and including 
     the 20th day before any election shall file a report within 
     48 hours after such expenditures are made. An additional 
     statement shall be filed each time independent expenditures 
     aggregating $10,000 are made with respect to the same 
     election as the initial statement filed under this section.
       ``(3) Any statement under this subsection shall be filed 
     with the Secretary of the Senate or the Commission, and the 
     Secretary of State of the State involved, as appropriate, and 
     shall contain the information required by subsection 
     (b)(6)(B)(iii) of this section, including whether the 
     independent expenditure is in support of, or in opposition 
     to, the candidate involved. The Secretary of the Senate shall 
     as soon as possible (but not later than 4 working hours of 
     the Commission) after receipt of a statement transmit it to 
     the Commission. Not later than 48 hours after the Commission 
     receives a report, the Commission shall transmit a copy of 
     the report to each candidate seeking nomination or election 
     to that office.
       ``(4) For purposes of this subsection, an expenditure shall 
     be treated as made when it is made or obligated to be made.
       ``(5)(A) If any person intends to make independent 
     expenditures totaling $5,000 or more during the 20 days 
     before an election, such person shall file a statement no 
     later than the 20th day before the election.
       ``(B) Any statement under subparagraph (A) shall be filed 
     with the Secretary of the Senate or the Commission, and the 
     Secretary of State of the State involved, as appropriate, and 
     shall identify each candidate whom the expenditure will 
     support or oppose. The Secretary of the Senate shall as soon 
     as possible (but not later than 4 working hours of the 
     Commission) after receipt of a statement transmit it to the 
     Commission. Not later than 48 hours after the Commission 
     receives a statement under this paragraph, the Commission 
     shall transmit a copy of the statement to each candidate 
     identified.
       ``(6) The Commission may make its own determination that a 
     person has made, or has incurred obligations to make, 
     independent expenditures with respect to any Federal election 
     which in the aggregate exceed the applicable amounts under 
     paragraph (1) or (2). The Commission shall notify each 
     candidate in such election of such determination within 24 
     hours of making it.
       ``(7) At the same time as a candidate is notified under 
     paragraph (3), (5), or (6) with respect to expenditures 
     during a general election period, the Commission shall 
     certify eligibility to receive benefits under section 503(a).
       ``(8) The Secretary of the Senate shall make any statement 
     received under this subsection available for public 
     inspection and copying in the same manner as the Commission 
     under section 311(a)(4), and shall preserve such statements 
     in the same manner as the Commission under section 
     311(a)(5).''.
       (b) Conforming Amendment.--Section 304(c)(2) of FECA (2 
     U.S.C. 434(c)(2)) is amended by striking the undesignated 
     matter after subparagraph (C).

     SEC. 10013. CAMPAIGN ADVERTISING AMENDMENTS.

       Section 318 of FECA (2 U.S.C. 441d) is amended--
       (1) in the matter before paragraph (1) of subsection (a), 
     by striking ``Whenever'' and inserting ``Whenever a political 
     committee makes a disbursement for the purpose of financing 
     any communication through any broadcasting station, 
     newspaper, magazine, outdoor advertising facility, mailing, 
     or any other type of general public political advertising, or 
     whenever'';
       (2) in the matter before paragraph (1) of subsection (a), 
     by striking ``an expenditure'' and inserting ``a 
     disbursement'';
       (3) in the matter before paragraph (1) of subsection (a), 
     by striking ``direct'';
       (4) in paragraph (3) of subsection (a), by inserting after 
     ``name'' the following ``and permanent street address''; and
       (5) by adding at the end the following new subsections:
       ``(c) Any printed communication described in subsection (a) 
     shall be--
       ``(1) of sufficient type size to be clearly readable by the 
     recipient of the communication;
       ``(2) contained in a printed box set apart from the other 
     contents of the communication; and
       ``(3) consist of a reasonable degree of color contrast 
     between the background and the printed statement.
       ``(d)(1) Any broadcast or cablecast communication described 
     in subsection (a)(1) or subsection (a)(2) shall include, in 
     addition to the requirements of those subsections, an audio 
     statement by the candidate that identifies the candidate and 
     states that the candidate has approved the communication.
       ``(2) If a broadcast or cablecast communication described 
     in paragraph (1) is broadcast or cablecast by means of 
     television, the communication shall include, in addition to 
     the audio statement under paragraph (1), a written statement 
     which--
       ``(A) states: `I, (name of the candidate), am a candidate 
     for (the office the candidate is seeking) and I have approved 
     this message';
       ``(B) appears at the end of the communication in a clearly 
     readable manner with a reasonable degree of color contrast 
     between the background and the printed statement, for a 
     period of at least 4 seconds; and
       ``(C) is accompanied by a clearly identifiable photographic 
     or similar image of the candidate.
       ``(e) Any broadcast or cablecast communication described in 
     subsection (a)(3) shall include, in addition to the 
     requirements of those subsections, in a clearly spoken 
     manner, the following statement--
       `             is responsible for the content of this 
     advertisement.'
     with the blank to be filled in with the name of the political 
     committee or other person paying for the communication and 
     the name of any connected organization of the payor; and, if 
     broadcast or cablecast by means of television, shall also 
     appear in a clearly readable manner with a reasonable degree 
     of color contrast between the background and the printed 
     statement, for a period of at least 4 seconds.''.

     SEC. 10014. DEFINITIONS.

       (a) In General.--Section 301 of FECA (2 U.S.C. 431) is 
     amended by striking paragraph (19) and inserting the 
     following new paragraphs:
       ``(19) The term `eligible Senate candidate' means a 
     candidate who is certified under section 504 as eligible to 
     receive benefits under title V.
       ``(20) The term `general election' means any election which 
     will directly result in the election of a person to a Federal 
     office. Such term includes a primary election which may 
     result in the election of a person to a Federal office.
       ``(21) The term `general election period' means, with 
     respect to any candidate, the period beginning on the day 
     after the date of the primary or runoff election for the 
     specific office the candidate is seeking, whichever is later, 
     and ending on the earlier of--
       ``(A) the date of such general election; or
       ``(B) the date on which the candidate withdraws from the 
     campaign or otherwise ceases actively to seek election.
       ``(22) The term `immediate family' means--
       ``(A) a candidate's spouse;
       ``(B) a child, stepchild, parent, grandparent, brother, 
     half-brother, sister or half-sister of the candidate or the 
     candidate's spouse; and
     [[Page S157]]   ``(C) the spouse of any person described in 
     subparagraph (B).
       ``(23) The term `major party' has the meaning given such 
     term in section 9002(6) of the Internal Revenue Code of 1986, 
     except that if a candidate qualified for the ballot in a 
     general election in an open primary in which all the 
     candidates for the office participated and which resulted in 
     the candidate and at least one other candidate qualifying for 
     the ballot in the general election, such candidate shall be 
     treated as a candidate of a major party for purposes of title 
     V.
       ``(24) The term `primary election' means an election which 
     may result in the selection of a candidate for the ballot in 
     a general election for a Federal office.
       ``(25) The term `primary election period' means, with 
     respect to any candidate, the period beginning on the day 
     following the date of the last election for the specific 
     office the candidate is seeking and ending on the earlier 
     of--
       ``(A) the date of the first primary election for that 
     office following the last general election for that office; 
     or
       ``(B) the date on which the candidate withdraws from the 
     election or otherwise ceases actively to seek election.
       ``(26) The term `runoff election' means an election held 
     after a primary election which is prescribed by applicable 
     State law as the means for deciding which candidate will be 
     on the ballot in the general election for a Federal office.
       ``(27) The term `runoff election period' means, with 
     respect to any candidate, the period beginning on the day 
     following the date of the last primary election for the 
     specific office such candidate is seeking and ending on the 
     date of the runoff election for such office.
       ``(28) The term `voting age population' means the resident 
     population, 18 years of age or older, as certified pursuant 
     to section 315(e).
       ``(29) The term `election cycle' means--
       ``(A) in the case of a candidate or the authorized 
     committees of a candidate, the term beginning on the day 
     after the date of the most recent general election for the 
     specific office or seat which such candidate seeks and ending 
     on the date of the next general election for such office or 
     seat; or
       ``(B) for all other persons, the term beginning on the 
     first day following the date of the last general election and 
     ending on the date of the next general election.''.
       (b) Identification.--Section 301(13) of FECA (2 U.S.C. 
     431(13)) is amended by striking ``mailing address'' and 
     inserting ``permanent residence address''.

     SEC. 10015. PROVISIONS RELATING TO FRANKED MASS MAILINGS.

       Section 3210(a)(6)(C) of title 39, United States Code, is 
     amended--
       (1) by striking ``if such mass mailing is postmarked fewer 
     than 60 days immediately before the date'' and inserting ``if 
     such mass mailing is postmarked during the calendar year''; 
     and
       (2) by inserting ``or reelection'' immediately before the 
     period.
                  Subtitle B--Independent Expenditures

     SEC. 10021. CLARIFICATION OF DEFINITIONS RELATING TO 
                   INDEPENDENT EXPENDITURES.

       (a) Independent Expenditure Definition Amendment.--Section 
     301 of FECA (2 U.S.C. 431) is amended by striking paragraphs 
     (17) and (18) and inserting the following:
       ``(17)(A) The term `independent expenditure' means an 
     expenditure for an advertisement or other communication 
     that--
       ``(i) contains express advocacy; and
       ``(ii) is made without the participation or cooperation of 
     a candidate or a candidate's representative.
       ``(B) The following shall not be considered an independent 
     expenditure:
       ``(i) An expenditure made by a political committee of a 
     political party.
       ``(ii) An expenditure made by a person who, during the 
     election cycle, has communicated with or received information 
     from a candidate or a representative of that candidate 
     regarding activities that have the purpose of influencing 
     that candidate's election to Federal office, where the 
     expenditure is in support of that candidate or in opposition 
     to another candidate for that office.
       ``(iii) An expenditure if there is any arrangement, 
     coordination, or direction with respect to the expenditure 
     between the candidate or the candidate's agent and the person 
     making the expenditure.
       ``(iv) An expenditure if, in the same election cycle, the 
     person making the expenditure is or has been--
       ``(I) authorized to raise or expend funds on behalf of the 
     candidate or the candidate's authorized committees; or
       ``(II) serving as a member, employee, or agent of the 
     candidate's authorized committees in an executive or 
     policymaking position.
       ``(v) An expenditure if the person making the expenditure 
     has advised or counseled the candidate or the candidate's 
     agents at any time on the candidate's plans, projects, or 
     needs relating to the candidate's pursuit of nomination for 
     election, or election, to Federal office, in the same 
     election cycle, including any advice relating to the 
     candidate's decision to seek Federal office.
       ``(vi) An expenditure if the person making the expenditure 
     retains the professional services of any individual or other 
     person also providing services in the same election cycle to 
     the candidate in connection with the candidate's pursuit of 
     nomination for election, or election, to Federal office, 
     including any services relating to the candidate's decision 
     to seek Federal office.
       ``(vii) An expenditure if the person making the expenditure 
     has consulted at any time during the calendar year in which 
     the election is to be held about the candidate's plans, 
     projects, or needs relating to the candidate's pursuit of 
     nomination for election, or election, to Federal office, 
     with--
       ``(I) any officer, director, employee or agent of a party 
     committee that has made or intends to make expenditures or 
     contributions, pursuant to subsections (a), (d), or (h) of 
     section 315 in connection with the candidate's campaign; or
       ``(II) any person whose professional services have been 
     retained by a political party committee that has made or 
     intends to make expenditures or contributions pursuant to 
     subsections (a), (d), or (h) of section 315 in connection 
     with the candidate's campaign.
     For purposes of this subparagraph, the person making the 
     expenditure shall include any officer, director, employee, or 
     agent of such person, and the term `professional services 
     shall include any services (other than legal and accounting 
     services for purposes of ensuring compliance with this title) 
     in support of any candidate's or candidates' pursuit of 
     nomination for election, or election, to Federal office.
       ``(18) The term `express advocacy' means, when a 
     communication is taken as a whole and with limited reference 
     to external events, an expression of support for or 
     opposition to a specific candidate, to a specific group of 
     candidates, or to candidates of a particular political party, 
     or a suggestion to take action with respect to an election, 
     such as to vote for or against, make contributions to, or 
     participate in campaign activity.''.
       (b) Contribution Definition Amendment.--Section 301(8)(A) 
     of FECA (2 U.S.C. 431(8)(A)) is amended--
       (1) in clause (i), by striking ``or'' after the semicolon 
     at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following new clause:
       ``(iii) any payment or other transaction referred to in 
     paragraph (17)(A)(i) that does not qualify as an independent 
     expenditure under paragraph (17)(A)(ii).''.

     SEC. 10022. EQUAL BROADCAST TIME.

       Section 315(a) of the Communications Act of 1934 (47 U.S.C. 
     315(a)) is amended to read as follows:
       ``(a)(1) If a licensee permits any person who is a legally 
     qualified candidate for public office to use a broadcasting 
     station other than any use required to be provided under 
     paragraph (2), the licensee shall afford equal opportunities 
     to all other such candidates for that office in the use of 
     the broadcasting station.
       ``(2)(A) A person who reserves broadcast time the payment 
     for which would constitute an independent expenditure within 
     the meaning of section 301(17) of the Federal Election 
     Campaign Act of 1971 (2 U.S.C. 431(17)) shall--
       ``(i) inform the licensee that payment for the broadcast 
     time will constitute an independent expenditure;
       ``(ii) inform the licensee of the names of all candidates 
     for the office to which the proposed broadcast relates and 
     state whether the message to be broadcast is intended to be 
     made in support of or in opposition to each such candidate; 
     and
       ``(iii) provide the licensee a copy of the statement 
     described in section 304(d) of the Federal Election Campaign 
     Act of 1971 (2 U.S.C. 434(d)).
       ``(B) A licensee who is informed as described in 
     subparagraph (A) shall--
       ``(i) if any of the candidates described in subparagraph 
     (A)(ii) has provided the licensee the name and address of a 
     person to whom notification under this subparagraph is to be 
     given--
       ``(I) notify such person of the proposed making of the 
     independent expenditure; and
       ``(II) allow any such candidate (other than a candidate for 
     whose benefit the independent expenditure is made) to 
     purchase the same amount of broadcast time immediately after 
     the broadcast time paid for by the independent expenditure; 
     and
       ``(ii) in the case of an opponent of a candidate for whose 
     benefit the independent expenditure is made who certifies to 
     the licensee that the opponent is eligible to have the cost 
     of response broadcast time paid using funds derived from a 
     payment made under section 503(a)(3)(B) of the Federal 
     Election Campaign Act of 1971, afford the opponent such 
     broadcast time without requiring payment in advance and at 
     the cost specified in subsection (b).
       ``(3) A licensee shall have no power of censorship over the 
     material broadcast under this section.
       ``(4) Except as provided in paragraph (2), no obligation is 
     imposed under this subsection upon any licensee to allow the 
     use of its station by any candidate.
       ``(5)(A) Appearance by a legally qualified candidate on a--
       ``(i) bona fide newscast;
       ``(ii) bona fide news interview;
       ``(iii) bona fide news documentary (if the appearance of 
     the candidate is incidental to the presentation of the 
     subject or subjects covered by the news documentary); or
       ``(iv) on-the-spot coverage of bona fide news events 
     (including political conventions and activities incidental 
     thereto),
     shall not be deemed to be use of a broadcasting station 
     within the meaning of this subsection.
      [[Page S158]]   ``(B) Nothing in subparagraph (A) shall be 
     construed as relieving broadcasters, in connection with the 
     presentation of newscasts, news interviews, news 
     documentaries, and on-the-spot coverage of news events, from 
     their obligation under this Act to operate in the public 
     interest and to afford reasonable opportunity for the 
     discussion of conflicting views on issues of public 
     importance.
       ``(6)(A) A licensee that endorses a candidate for Federal 
     office in an editorial shall, within the time stated in 
     subparagraph (B), provide to all other candidates for 
     election to the same office--
       ``(i) notice of the date and time of broadcast of the 
     editorial;
       ``(ii) a taped or printed copy of the editorial; and
       ``(iii) a reasonable opportunity to broadcast a response 
     using the licensee's facilities.
       ``(B) In the case of an editorial described in subparagraph 
     (A) that--
       ``(i) is first broadcast 72 hours or more prior to the date 
     of a primary, runoff, or general election, the notice and 
     copy described in subparagraph (A) (i) and (ii) shall be 
     provided not later than 24 hours after the time of the first 
     broadcast of the editorial, and
       ``(ii) is first broadcast less than 72 hours before the 
     date of an election, the notice and copy shall be provided at 
     a time prior to the first broadcast that will be sufficient 
     to enable candidates a reasonable opportunity to prepare and 
     broadcast a response.''.
                        Subtitle C--Expenditures

                     PART I--PERSONAL LOANS; CREDIT

     SEC. 10031. PERSONAL CONTRIBUTIONS AND LOANS.

       Section 315 of FECA (2 U.S.C. 441a) is amended by adding at 
     the end the following new subsection:
       ``(j) Limitations on Payments to Candidates.--(1) If a 
     candidate or a member of the candidate's immediate family 
     made any loans to the candidate or to the candidate's 
     authorized committees during any election cycle, no 
     contributions received after the date of the general election 
     for such election cycle may be used to repay such loans.
       ``(2) No contribution by a candidate or member of the 
     candidate's immediate family may be returned to the candidate 
     or member other than as part of a pro rata distribution of 
     excess contributions to all contributors.''.

     SEC. 10032. EXTENSIONS OF CREDIT.

       Section 301(8)(A) of FECA (2 U.S.C. 431(8)(A)), as amended 
     by section 10021(b), is amended--
       (1) by striking ``or'' at the end of clause (ii);
       (2) by striking the period at the end of clause (iii) and 
     inserting ``; or''; and
       (3) by inserting at the end the following new clause:
       ``(iv) with respect to a candidate and the candidate's 
     authorized committees, any extension of credit for goods or 
     services relating to advertising on broadcasting stations, in 
     newspapers or magazines, or by mailings, or relating to other 
     similar types of general public political advertising, if 
     such extension of credit is--
       ``(I) in an amount of more than $1,000; and
       ``(II) for a period greater than the period, not in excess 
     of 60 days, for which credit is generally extended in the 
     normal course of business after the date on which such goods 
     or services are furnished or the date of a mailing.''.

    PART II--PROVISIONS RELATING TO SOFT MONEY OF POLITICAL PARTIES

     SEC. 10033. DEFINITIONS.

       (a) Contribution and Expenditure Exceptions.--(1) Clause 
     (xii) of section 301(8)(B) of FECA (2 U.S.C. 431(8)(B)(xii)) 
     is amended--
       (A) by inserting ``in connection with volunteer 
     activities'' after ``such committee''; and
       (B) by striking ``and'' at the end of subclause (2), by 
     inserting ``and'' at the end of subclause (3), and by adding 
     at the end the following new subclause:
       ``(4) such activities are conducted solely by, or any 
     materials are distributed solely by, volunteers;''.
       (2) Clause (ix) of section 301(9)(B) of FECA (2 U.S.C. 
     431(9)(B)(ix)) is amended--
       (A) by inserting ``in connection with volunteer 
     activities'' after ``such committee'', and
       (B) by striking ``and'' at the end of subclause (2), by 
     inserting ``and'' at the end of subclause (3), and by adding 
     at the end the following new subclause:
       ``(4) any materials in connection with such activities are 
     prepared for distribution (and are distributed) solely by 
     volunteers;''.
       (b) Generic Activities; State Party Grassroots Fund.--
     Section 301 of FECA (2 U.S.C. 431), as amended by section 
     ____15, is amended by adding at the end thereof the following 
     new paragraphs:
       ``(30) The term `generic campaign activity' means a 
     campaign activity that promotes a political party rather than 
     any particular Federal or non-Federal candidate.
       ``(31) The term `State Party Grassroots Fund' means a 
     separate segregated fund established and maintained by a 
     State committee of a political party solely for purposes of 
     making expenditures and other disbursements described in 
     section 324(d).''.

     SEC. 10034. CONTRIBUTIONS TO POLITICAL PARTY COMMITTEES.

       (a) Individual Contributions to State Party.--Paragraph (1) 
     of section 315(a) of FECA (2 U.S.C. 441a(a)(1)) is amended by 
     striking ``or'' at the end of subparagraph (B), by 
     redesignating subparagraph (C) as subparagraph (D), and by 
     inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) to--
       ``(i) a State Party Grassroots Fund established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $20,000;
       ``(ii) any other political committee established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $5,000,
     except that the aggregate contributions described in this 
     subparagraph which may be made by a person to the State Party 
     Grassroots Fund and all committees of a State Committee of a 
     political party in any State in any calendar year shall not 
     exceed $20,000; or''.
       (b) Multicandidate Committee Contributions to State 
     Party.--Paragraph (2) of section 315(a) of FECA (2 U.S.C. 
     441a(a)(2)) is amended by striking ``or'' at the end of 
     subparagraph (B), by redesignating subparagraph (C) as 
     subparagraph (D), and by inserting after subparagraph (B) the 
     following new subparagraph:
       ``(C) to--
       ``(i) a State Party Grassroots Fund established and 
     maintained by a State committee of a political party in any 
     calendar year which, in the aggregate, exceed $15,000;
       ``(ii) to any other political committee established and 
     maintained by a State committee of a political party which, 
     in the aggregate, exceed $5,000,
     except that the aggregate contributions described in this 
     subparagraph which may be made by a multicandidate political 
     committee to the State Party Grassroots Fund and all 
     committees of a State Committee of a political party in any 
     State in any calendar year shall not exceed $15,000; or''.
       (c) Overall Limit.--Paragraph (3) of section 315(a) of FECA 
     (2 U.S.C. 441a(a)(3)) is amended to read as follows:
       ``(3)(A) No individual shall make contributions during any 
     election cycle (as defined in section 301(29)(B)) which, in 
     the aggregate, exceed $60,000.
       ``(B) No individual shall make contributions during any 
     calendar year--
       ``(i) to all candidates and their authorized political 
     committees which, in the aggregate, exceed $25,000; or
       ``(ii) to all political committees established and 
     maintained by State committees of a political party which, in 
     the aggregate, exceed $20,000.
       ``(C) For purposes of subparagraph (B)(i), any contribution 
     made to a candidate or the candidate's authorized political 
     committees in a year other than the calendar year in which 
     the election is held with respect to which such contribution 
     is made shall be treated as made during the calendar year in 
     which the election is held.''.
       (d) Presidential Candidate Committee Transfers.--(1) 
     Subparagraph (B) of section 315(b)(1) of FECA (2 U.S.C. 
     441a(b)(1)) is amended to read as follows:
       ``(B) in the case of a campaign for election to such 
     office, an amount equal to the sum of--
       ``(i) $20,000,000, plus
       ``(ii) the lesser of--

       ``(I) 2 cents multiplied by the voting age population of 
     the United States (as certified under subsection (e) of this 
     section), or
       ``(II) the amounts transferred by the candidate and the 
     authorized committees of the candidate to the national 
     committee of the candidate's political party for distribution 
     to State Party Grassroots Funds.''.

       (2) Subparagraph (A) of section 9002(11) of the Internal 
     Revenue Code of 1986 (defining qualified campaign expense) is 
     amended by striking ``or'' at the end of clause (ii), by 
     inserting ``or'' at the end of clause (iii), and by inserting 
     at the end the following new clause ``(iv) any transfers to 
     the national committee of the candidate's political party for 
     distribution to State Party Grassroots Funds (as defined in 
     section 301(31) of the Federal Election Campaign Act of 1971) 
     to the extent such transfers do not exceed the amount 
     determined under section 315(b)(1)(B)(ii) of such Act,''.

     SEC. 10035. PROVISIONS RELATING TO NATIONAL, STATE, AND LOCAL 
                   PARTY COMMITTEES.

       (a) Soft Money of Committees of Political Parties.--Title 
     III of FECA is amended by inserting after section 323 the 
     following new section:


                      ``POLITICAL PARTY COMMITTEES

       ``Sec. 324. (a) Limitations on National Committee.--(1) A 
     national committee of a political party and the congressional 
     campaign committees of a political party may not solicit or 
     accept contributions or transfers not subject to the 
     limitations, prohibitions, and reporting requirements of this 
     Act.
       ``(2) Paragraph (1) shall not apply to contributions--
       ``(A) that--
       ``(i) are to be transferred to a State committee of a 
     political party and are used solely for activities described 
     in clauses (xi) through (xvii) of paragraph (9)(B) of section 
     301; or
       ``(ii) are described in section 301(8)(B)(viii); and
       ``(B) with respect to which contributors have been notified 
     that the funds will be used solely for the purposes described 
     in subparagraph (A).
       ``(b) Activities Subject to This Act.--Any amount 
     solicited, received, expended, or disbursed directly or 
     indirectly by a national, State, district, or local committee 
     of a political party (including any subordinate committee) 
     with respect to any of the following activities shall be 
     subject to the limitations, 
     [[Page S159]] prohibitions, and reporting requirements of 
     this Act:
       ``(1)(A) Any get-out-the-vote activity conducted during a 
     calendar year in which an election for the office of 
     President is held.
       ``(B) Any other get-out-the-vote activity unless subsection 
     (c)(2) applies to the activity.
       ``(2) Any generic campaign activity.
       ``(3) Any activity that identifies or promotes a Federal 
     candidate, regardless of whether--
       ``(A) a State or local candidate is also identified or 
     promoted; or
       ``(B) any portion of the funds disbursed constitutes a 
     contribution or expenditure under this Act.
       ``(4) Voter registration.
       ``(5) Development and maintenance of voter files during an 
     even-numbered calendar year.
       ``(6) Any other activity that--
       ``(A) significantly affects a Federal election, or
       ``(B) is not otherwise described in section 
     301(8)(B)(xvii).

     Any amount spent to raise funds that are used, in whole or in 
     part, in connection with activities described in the 
     preceding paragraphs shall be subject to the limitations, 
     prohibitions, and reporting requirements of this Act.
       ``(c) Get-Out-The-Vote Activities By State, District, and 
     Local Committees of Political Parties.--(1) Except as 
     provided in paragraph (2), any get-out-the-vote activity for 
     a State or local candidate, or for a ballot measure, which is 
     conducted by a State, district, or local committee of a 
     political party (including any subordinate committee) shall 
     be subject to the limitations, prohibitions, and reporting 
     requirements of this Act.
       ``(2) Paragraph (1) shall not apply to any activity which 
     the State committee of a political party certifies to the 
     Commission is an activity which--
       ``(A) is conducted during a calendar year other than a 
     calendar year in which an election for the office of 
     President is held,
       ``(B) is exclusively on behalf of (and specifically 
     identifies only) one or more State or local candidates or 
     ballot measures, and
       ``(C) does not include any effort or means used to identify 
     or turn out those identified to be supporters of any Federal 
     candidate (including any activity that is undertaken in 
     coordination with, or on behalf of, a candidate for Federal 
     office).
       ``(d) State Party Grassroots Funds.--(1) A State committee 
     of a political party may make disbursements and expenditures 
     from its State Party Grassroots Fund only for--
       ``(A) any generic campaign activity;
       ``(B) payments described in clauses (v), (x), and (xii) of 
     paragraph (8)(B) and clauses (iv), (viii), and (ix) of 
     paragraph (9)(B) of section 301;
       ``(C) subject to the limitations of section 315(d), 
     payments described in clause (xii) of paragraph (8)(B), and 
     clause (ix) of paragraph (9)(B), of section 301 on behalf of 
     candidates other than for President and Vice President;
       ``(D) voter registration; and
       ``(E) development and maintenance of voter files during an 
     even-numbered calendar year.
       ``(2) Notwithstanding section 315(a)(4), no funds may be 
     transferred by a State committee of a political party from 
     its State Party Grassroots Fund to any other State Party 
     Grassroots Fund or to any other political committee, except a 
     transfer may be made to a district or local committee of the 
     same political party in the same State if such district or 
     local committee--
       ``(A) has established a separate segregated fund for the 
     purposes described in paragraph (1); and
       ``(B) uses the transferred funds solely for those purposes.
       ``(e) Amounts Received by Grassroots Fund From State and 
     Local Candidate Committees.--(1) Any amount received by a 
     State Party Grassroots Fund from a State or local candidate 
     committee for expenditures described in subsection (b) that 
     are for the benefit of that candidate shall be treated as 
     meeting the requirements of subsection (b) and section 304(e) 
     if--
       ``(A) such amount is derived from funds which meet the 
     requirements of this Act with respect to any limitation or 
     prohibition as to source or dollar amount specified in 
     section 315(a) (1)(A) and (2)(A); and
       ``(B) the State or local candidate committee--
       ``(i) maintains, in the account from which payment is made, 
     records of the sources and amounts of funds for purposes of 
     determining whether such requirements are met; and
       ``(ii) certifies that such requirements were met.
       ``(2) For purposes of paragraph (1)(A), in determining 
     whether the funds transferred meet the requirements of this 
     Act described in such paragraph--
       ``(A) a State or local candidate committee's cash on hand 
     shall be treated as consisting of the funds most recently 
     received by the committee, and
       ``(B) the committee must be able to demonstrate that its 
     cash on hand contains sufficient funds meeting such 
     requirements as are necessary to cover the transferred funds.
       ``(3) Notwithstanding paragraph (1), any State Party 
     Grassroots Fund receiving any transfer described in paragraph 
     (1) from a State or local candidate committee shall be 
     required to meet the reporting requirements of this Act, and 
     shall submit to the Commission all certifications received, 
     with respect to receipt of the transfer from such candidate 
     committee.
       ``(4) For purposes of this subsection, a State or local 
     candidate committee is a committee established, financed, 
     maintained, or controlled by a candidate for other than 
     Federal office.''.
       (b) Contributions and Expenditures.--(1) Section 301(8)(B) 
     of FECA (2 U.S.C. 431(8)(B)) is amended by striking ``and'' 
     at the end of clause (xiii), by striking the period at the 
     end of clause (xiv) and inserting a semicolon, and by adding 
     at the end the following new clauses:
       ``(xv) any amount contributed to a candidate for other than 
     Federal office;
       ``(xvi) any amount received or expended to pay the costs of 
     a State or local political convention;
       ``(xvii) any payment for campaign activities that are 
     exclusively on behalf of (and specifically identify only) 
     State or local candidates and do not identify any Federal 
     candidate, and that are not activities described in section 
     324(b) (without regard to paragraph (6)(B)) or section 
     324(c)(1);
       ``(xviii) any payment for administrative expenses of a 
     State or local committee of a political party, including 
     expenses for--

       ``(I) overhead, including party meetings;
       ``(II) staff (other than individuals devoting a significant 
     amount of their time to elections for Federal office and 
     individuals engaged in conducting get-out-the-vote activities 
     for a Federal election); and
       ``(III) conducting party elections or caucuses;

       ``(xix) any payment for research pertaining solely to State 
     and local candidates and issues;
       ``(xx) any payment for development and maintenance of voter 
     files other than during the 1-year period ending on the date 
     during an even-numbered calendar year on which regularly 
     scheduled general elections for Federal office occur; and
       ``(xxi) any payment for any other activity which is solely 
     for the purpose of influencing, and which solely affects, an 
     election for non-Federal office and which is not an activity 
     described in section 324(b) (without regard to paragraph 
     (6)(B)) or section 324(c)(1).''.
       (2) Section 301(9)(B) of FECA (2 U.S.C. 431(9)(B)) is 
     amended by striking ``and'' at the end of clause (ix), by 
     striking the period at the end of clause (x) and inserting a 
     semicolon, and by adding at the end the following new 
     clauses:
       ``(xi) any amount contributed to a candidate for other than 
     Federal office;
       ``(xii) any amount received or expended to pay the costs of 
     a State or local political convention;
       ``(xiii) any payment for campaign activities that are 
     exclusively on behalf of (and specifically identify only) 
     State or local candidates and do not identify any Federal 
     candidate, and that are not activities described in section 
     324(b) (without regard to paragraph (6)(B)) or section 
     324(c)(1);
       ``(xiv) any payment for administrative expenses of a State 
     or local committee of a political party, including expenses 
     for--

       ``(I) overhead, including party meetings;
       ``(II) staff (other than individuals devoting a significant 
     amount of their time to elections for Federal office and 
     individuals engaged in conducting get-out-the-vote activities 
     for a Federal election); and
       ``(III) conducting party elections or caucuses;

       ``(xv) any payment for research pertaining solely to State 
     and local candidates and issues;
       ``(xvi) any payment for development and maintenance of 
     voter files other than during the 1-year period ending on the 
     date during an even-numbered calendar year on which regularly 
     scheduled general elections for Federal office occur; and
       ``(xvii) any payment for any other activity which is solely 
     for the purpose of influencing, and which solely affects, an 
     election for non-Federal office and which is not an activity 
     described in section 324(b) (without regard to paragraph 
     (6)(B)) or section 324(c)(1).''.
       (c) Limitation Applied at National Level.--Paragraph (3) of 
     section 315(d) of FECA (2 U.S.C. 441a(d)(3)) is amended by 
     adding at the end the following new sentence:
     ``Notwithstanding the preceding sentence, the applicable 
     congressional campaign committee of a political party shall 
     make the expenditures described in this paragraph which are 
     authorized to be made by a national or State committee with 
     respect to a candidate in any State unless it allocates all 
     or a portion of such expenditures to either or both of such 
     committees.''.
       (d) Limitations Apply for Entire Election Cycle.--Section 
     315(d)(1) of FECA (2 U.S.C. 441a(d)(1)) is amended by adding 
     at the end the following new sentence: ``Each limitation 
     under the following paragraphs shall apply to the entire 
     election cycle for an office.''.

     SEC. 10036. RESTRICTIONS ON FUNDRAISING BY CANDIDATES AND 
                   OFFICEHOLDERS.

       (a) State Fundraising Activities.--Section 315 of FECA (2 
     U.S.C. 441a), as amended by section 10031, is amended by 
     adding at the end the following new subsection:
     [[Page S160]]   ``(k) Limitations on Fundraising Activities 
     of Federal Candidates and Officeholders and Certain Political 
     Committees.--(1) For purposes of this Act, a candidate for 
     Federal office, an individual holding Federal office, or any 
     agent of the candidate or individual may not solicit funds 
     to, or receive funds on behalf of, any Federal or non-Federal 
     candidate or political committee--
       ``(A) which are to be expended in connection with any 
     election for Federal office unless such funds are subject to 
     the limitations, prohibitions, and requirements of this Act; 
     or
       ``(B) which are to be expended in connection with any 
     election for other than Federal office unless such funds are 
     not in excess of amounts permitted with respect to Federal 
     candidates and political committees under subsections (a) (1) 
     and (2), and are not from sources prohibited by such 
     subsections with respect to elections to Federal office.
       ``(2)(A) The aggregate amount which a person described in 
     subparagraph (B) may solicit from a multicandidate political 
     committee for State committees described in subsection 
     (a)(1)(C) (including subordinate committees) for any calendar 
     year shall not exceed the dollar amount in effect under 
     subsection (a)(2)(B) for the calendar year.
       ``(B) A person is described in this subparagraph if such 
     person is a candidate for Federal office, an individual 
     holding Federal office, an agent of such a candidate or 
     individual, or any national, State, district, or local 
     committee of a political party (including a subordinate 
     committee) and any agent of such a committee.
       ``(3) The appearance or participation by a candidate for 
     Federal office or individual holding Federal office in any 
     fundraising event conducted by a committee of a political 
     party or a candidate for other than Federal office shall not 
     be treated as a solicitation for purposes of paragraph (1) if 
     such candidate or individual does not solicit or receive, or 
     make disbursements from, any funds resulting from such 
     activity.
       ``(4) Paragraph (1) shall not apply to the solicitation or 
     receipt of funds, or disbursements, by an individual who is a 
     candidate for other than Federal office if such activity is 
     permitted under State law.
       ``(5) For purposes of this subsection, an individual shall 
     be treated as holding Federal office if such individual--
       ``(A) holds a Federal office; or
       ``(B) holds a position described in level I of the 
     Executive Schedule under section 5312 of title 5, United 
     States Code.''.
       (b) Tax-Exempt Organizations.--Section 315 of FECA (2 
     U.S.C. 441a), as amended by subsection (a), is amended by 
     adding at the end thereof the following new subsection:
       ``(l) Tax-Exempt Organizations.--(1) If an individual is a 
     candidate for, or holds, Federal office during any period, 
     such individual may not during such period solicit 
     contributions to, or on behalf of, any organization which is 
     described in section 501(c) of the Internal Revenue Code of 
     1986 if a significant portion of the activities of such 
     organization include voter registration or get-out-the-vote 
     campaigns.
       ``(2) For purposes of this subsection, an individual shall 
     be treated as holding Federal office if such individual--
       ``(A) holds a Federal office; or
       ``(B) holds a position described in level I of the 
     Executive Schedule under section 5312 of title 5, United 
     States Code.''.

     SEC. 10037. REPORTING REQUIREMENTS.

       (a) Reporting Requirements.--Section 304 of FECA (2 U.S.C. 
     434), as amended by section 10012(a), is amended by adding at 
     the end thereof the following new subsection:
       ``(e) Political Committees.--(1) The national committee of 
     a political party and any congressional campaign committee of 
     a political party, and any subordinate committee of either, 
     shall report all receipts and disbursements during the 
     reporting period, whether or not in connection with an 
     election for Federal office.
       ``(2) A political committee (not described in paragraph 
     (1)) to which section 324 applies shall report all receipts 
     and disbursements including separate schedules for receipts 
     and disbursements for State Grassroots Funds described in 
     section 301(31).
       ``(3) Any political committee to which section 324 applies 
     shall include in its report under paragraph (1) or (2) the 
     amount of any transfer described in section 324(d)(2) and 
     shall itemize such amounts to the extent required by section 
     304(b)(3)(A).
       ``(4) Any political committee to which paragraph (1) or (2) 
     does not apply shall report any receipts or disbursements 
     which are used in connection with a Federal election.
       ``(5) If a political committee has receipts or 
     disbursements to which this subsection applies from any 
     person aggregating in excess of $200 for any calendar year, 
     the political committee shall separately itemize its 
     reporting for such person in the same manner as subsection 
     (b) (3)(A), (5), or (6).
       ``(6) Reports required to be filed by this subsection shall 
     be filed for the same time periods required for political 
     committees under subsection (a).''.
       (b) Report of Exempt Contributions.--Section 301(8) of the 
     Federal Election Campaign Act of 1971 (2 U.S.C. 431(8)) is 
     amended by inserting at the end thereof the following:
       ``(C) The exclusion provided in clause (viii) of 
     subparagraph (B) shall not apply for purposes of any 
     requirement to report contributions under this Act, and all 
     such contributions aggregating in excess of $200 shall be 
     reported.''.
       (c) Reports by State Committees.--Section 304 of FECA (2 
     U.S.C. 434), as amended by subsection (a), is amended by 
     adding at the end thereof the following new subsection:
       ``(f) Filing of State Reports.--In lieu of any report 
     required to be filed by this Act, the Commission may allow a 
     State committee of a political party to file with the 
     Commission a report required to be filed under State law if 
     the Commission determines such reports contain substantially 
     the same information.''.
       (d) Other Reporting Requirements.--
       (1) Authorized committees.--Paragraph (4) of section 304(b) 
     of FECA (2 U.S.C. 434(b)(4)) is amended by striking ``and'' 
     at the end of subparagraph (H), by inserting ``and'' at the 
     end of subparagraph (I), and by adding at the end the 
     following new subparagraph:
       ``(J) in the case of an authorized committee, disbursements 
     for the primary election, the general election, and any other 
     election in which the candidate participates;''.
       (2) Names and addresses.--Subparagraph (A) of section 
     304(b)(5) of FECA (2 U.S.C. 434(b)(5)(A)) is amended--
       (A) by striking ``within the calendar year'', and
       (B) by inserting ``, and the election to which the 
     operating expenditure relates'' after ``operating 
     expenditure''.
                       Subtitle D--Contributions

     SEC. 10041. CONTRIBUTIONS THROUGH INTERMEDIARIES AND 
                   CONDUITS; PROHIBITION ON CERTAIN CONTRIBUTIONS 
                   BY LOBBYISTS.

       (a) Contributions Through Intermediaries and Conduits.--
     Section 315(a)(8) of FECA (2 U.S.C. 441a(a)(8)) is amended to 
     read as follows:
       ``(8) For purposes of this subsection:
       ``(A) Contributions made by a person, either directly or 
     indirectly, to or on behalf of a particular candidate, 
     including contributions that are in any way earmarked or 
     otherwise directed through an intermediary or conduit to a 
     candidate, shall be treated as contributions from the person 
     to the candidate. If a contribution is made to a candidate 
     through an intermediary or conduit, the intermediary or 
     conduit shall report the original source and the intended 
     recipient of the contribution to the Commission and to the 
     intended recipient.
       ``(B) Contributions made directly or indirectly by a person 
     to or on behalf of a particular candidate through an 
     intermediary or conduit, including contributions arranged to 
     be made by an intermediary or conduit, shall be treated as 
     contributions from the intermediary or conduit to the 
     candidate if--
       ``(i) the contributions made through the intermediary or 
     conduit are in the form of a check or other negotiable 
     instrument made payable to the intermediary or conduit rather 
     than the intended recipient; or
       ``(ii) the intermediary or conduit is--
       ``(I) a political committee which is not described in 
     subparagraph (E), a political party, or an officer, employee, 
     or agent of either;
       ``(II) an individual whose activities are required to be 
     reported under section 308 of the Federal Regulation of 
     Lobbying Act (2 U.S.C. 267), the Foreign Agents Registration 
     Act of 1938 (22 U.S.C. 611 et seq.), or any successor Federal 
     law requiring a person who is a lobbyist or foreign agent to 
     report its activities;
       ``(III) a person which is prohibited from making 
     contributions under section 316 or which is a partnership; or
       ``(IV) an officer, employee, or agent of a person described 
     in subclause (II) or (III) acting on behalf of such person.
       ``(C)(i) The term `contributions arranged to be made' 
     includes--
       ``(I) contributions delivered to a particular candidate or 
     the candidate's authorized committee or agent by the person 
     who arranged for the making of the contribution; and
       ``(II) contributions to a particular candidate or the 
     candidate's authorized committee or agent that are made or 
     arranged to be made so as to identify to the candidate or 
     authorized committee or agent the person who arranged for the 
     making of the contribution.
       ``(ii) The term `acting on behalf of such person' includes 
     the following activities by an officer, employee, or agent of 
     a person described in subparagraph (B)(ii) (II) or (III):
       ``(I) Soliciting the making of a contribution to a 
     particular candidate in the name of such a person.
       ``(II) Soliciting the making of a contribution to a 
     particular candidate using other than incidental resources of 
     such a person.
       ``(III) Soliciting contributions for a particular candidate 
     by directing a substantial portion of the solicitations to 
     other officers, employees, or agents of such a person.
       ``(iii) Except for purposes of subclauses (I) and (II) of 
     clause (ii), an individual shall not be treated as an 
     officer, employee, or agent of a person if--
       ``(I) in the case of a membership organization, the 
     individual is a member of the organization, or
       ``(II) the individual serves on the board of the person and 
     the individual does not receive any compensation from that 
     person (or any subsidiary or affiliated person) by reason of 
     serving in that capacity.
       ``(D) Nothing in this paragraph shall apply to--
       ``(i) bona fide joint fundraising efforts conducted solely 
     for the purpose of sponsorship of a fundraising reception, 
     dinner, or other similar event, in accordance with rules 
     prescribed by the Commission, by 2 or more candidates acting 
     on their own behalf;
      [[Page S161]]   ``(ii) fundraising efforts for the benefit 
     of a candidate that are conducted by another candidate or 
     Federal officeholder; or
       ``(iii) the solicitation by an individual, using the 
     individual's own resources and acting in the individual's own 
     name, of contributions from other persons in a manner that 
     does not identify the solicitor with the making of the 
     contribution.
       ``(E)(i) For purposes of subparagraph (B)(ii)(I), a 
     political committee described in this subparagraph is one 
     which--
       ``(I) does not have a connected organization;
       ``(II) has not contracted for the services of, and does not 
     employ on a full or part-time basis, any individual described 
     in subparagraph (B)(ii)(II) during the same election cycle; 
     and
       ``(III) is not affiliated with any person or organization 
     that has contracted for the services of, or has employed on a 
     full or part-time basis, any individual described in 
     subparagraph (B)(ii)(II) during the same election cycle.
       ``(ii) For purposes of clause (i)(III), organizations are 
     affiliated if they are established, financed, maintained, or 
     controlled by the same person or group of persons. Evidence 
     of such affiliation includes, but is not limited to--
       ``(I) common membership, employees, officers, or 
     facilities;
       ``(II) the donation, contribution, or transfer of funds 
     between the organizations;
       ``(III) the exchange, sharing, or disclosure of any 
     membership, mailing, contributor, or other list of names; or
       ``(IV) the authority or ability to direct, or to 
     participate in, the governance or decisionmaking of an 
     organization.''
       (b) Reporting of Earmarked Contributions.--Section 304, as 
     amended by section 10037, is further amended by adding the 
     following new subsection:
       ``(f) Reporting of Earmarked Contributions.--(1) An 
     intermediary or conduit shall report the original source and 
     the intended recipient of each contribution forwarded to a 
     candidate in accordance with section 315(a)(8), and the 
     identification of each contributor as required by subsection 
     (b)(3). The intermediary or conduit shall also report the 
     total amount of contributions made through the intermediary 
     or conduit for each candidate to whom contributions were 
     directed in the reporting period, the dates on which the 
     contributions were received for that candidate, and the dates 
     on which they were forwarded to the candidate.
       ``(2) An authorized committee which receives contributions 
     through an intermediary or conduit shall report the total 
     amount received through each intermediary or conduit in the 
     reporting period, the dates the contributions were received, 
     and the identification of each contributor as required by 
     subsection (b)(3).''.
       (c) Prohibition of Certain Contributions by Lobbyists.--
     Section 315 of FECA (2 U.S.C. 441a), as amended by section 
     10036(b), is amended by adding at the end the following new 
     subsection:
       ``(m)(1) A lobbyist, or a political committee controlled by 
     a lobbyist, shall not make a contribution to--
       ``(A) a Federal officeholder or candidate for Federal 
     office if, during the preceding 12 months, the lobbyist has 
     made a lobbying contact with such officeholder or candidate; 
     or
       ``(B) any authorized committee of the President or Vice 
     President of the United States if, during the preceding 12 
     months, the lobbyist has made a lobbying contact with a 
     covered executive branch official.
       ``(2) A lobbyist who, or a lobbyist whose political 
     committee, has made any contribution to any member of 
     Congress or candidate for Congress (or any authorized 
     committee of the President) shall not, during the 12 months 
     following such contribution, make a lobbying contact with 
     such member or candidate who becomes a member of Congress or 
     with a covered executive branch official.
       ``(3) For purposes of this subsection--
       ``(A) the term `covered executive branch official' means 
     the President, Vice President, any officer or employee of the 
     executive office of the President other than a clerical or 
     secretarial employee, any officer or employee serving in an 
     Executive Level I, II, III, IV, or V position as designated 
     in statute or Executive order, any officer or employee 
     serving in a senior executive service position (as defined in 
     section 3232(a)(2) of title 5, United States Code), any 
     member of the uniformed services whose pay grade is at or in 
     excess of 0-7 under section 201 of title 37, United States 
     Code, and any officer or employee serving in a position of 
     confidential or policy-determining character under schedule C 
     of the excepted service pursuant to regulations implementing 
     section 2103 of title 5, United States Code;
       ``(B) the term `lobbyist' means--
       ``(i) a person required to register under section 308 of 
     the Federal Regulation of Lobbying Act (2 U.S.C. 267) or the 
     Foreign Agents Registration Act of 1938 (22 U.S.C. 611 et 
     seq.) or any successor Federal law requiring a person who is 
     a lobbyist or foreign agent to register or a person to report 
     its lobbying activities; or
       ``(C) the term `lobbying contact'--
       ``(i) means an oral or written communication with or 
     appearance before a member of Congress or covered executive 
     branch official made by a lobbyist representing an interest 
     of another person with regard to--
       ``(I) the formulation, modification, or adoption of Federal 
     legislation (including a legislative proposal);
       ``(II) the formulation, modification, or adoption of a 
     Federal rule, regulation, Executive order, or any other 
     program, policy or position of the United States Government; 
     or
       ``(III) the administration or execution of a Federal 
     program or policy (including the negotiation, award, or 
     administration of a Federal contract, grant, loan, permit, or 
     license); but
       ``(ii) does not include a communication that is--
       ``(I) made by a public official acting in an official 
     capacity;
       ``(II) made by a representative of a media organization who 
     is primarily engaged in gathering and disseminating news and 
     information to the public;
       ``(III) made in a speech, article, publication, or other 
     material that is widely distributed to the public or through 
     the media;
       ``(IV) a request for an appointment, a request for the 
     status of a Federal action, or another similar ministerial 
     contact, if there is no attempt to influence a member of 
     Congress or covered executive branch official at the time of 
     the contact;
       ``(V) made in the course of participation in an advisory 
     committee subject to the Federal Advisory Committee Act (5 
     U.S.C. App.);
       ``(VI) testimony given before a committee, subcommittee, or 
     office of Congress a Federal agency, or submitted for 
     inclusion in the public record of a hearing conducted by the 
     committee, subcommittee, or office;
       ``(VII) information provided in writing in response to a 
     specific written request from a member of Congress or covered 
     executive branch official;
       ``(VIII) required by subpoena, civil investigative demand, 
     or otherwise compelled by statute, regulation, or other 
     action of Congress or a Federal agency;
       ``(IX) made to an agency official with regard to a judicial 
     proceeding, criminal or civil law enforcement inquiry, 
     investigation, or proceeding, or filing required by law;
       ``(X) made in compliance with written agency procedures 
     regarding an adjudication conducted by the agency under 
     section 554 of title 5, United States Code, or substantially 
     similar provisions;
       ``(XI) a written comment filed in a public docket and other 
     communication that is made on the record in a public 
     proceeding;
       ``(XII) a formal petition for agency action, made in 
     writing pursuant to established agency procedures; or
       ``(XIII) made on behalf of a person with regard to the 
     person's benefits, employment, other personal matters 
     involving only that person, or disclosures pursuant to a 
     whistleblower statute.''.
       ``(5) For purposes of this subsection, a lobbyist shall be 
     considered to make a lobbying contact or communication with a 
     member of Congress if the lobbyist makes a lobbying contact 
     or communication with--
       ``(A) the member of Congress;
       ``(B) any person employed in the office of the member of 
     Congress; or
       ``(C) any person employed by a committee, joint committee, 
     or leadership office who, to the knowledge of the lobbyist, 
     was employed at the request of or is employed at the pleasure 
     of, reports primarily to, represents, or acts as the agent of 
     the member of Congress.''.

     SEC. 10042. CONTRIBUTIONS BY DEPENDENTS NOT OF VOTING AGE.

       Section 315 of FECA (2 U.S.C. 441a), as amended by section 
     10041(c), is amended by adding at the end the following new 
     subsection:
       ``(n) For purposes of this section, any contribution by an 
     individual who--
       ``(1) is a dependent of another individual; and
       ``(2) has not, as of the time of such contribution, 
     attained the legal age for voting for elections to Federal 
     office in the State in which such individual resides,
     shall be treated as having been made by such other 
     individual. If such individual is the dependent of another 
     individual and such other individual's spouse, the 
     contribution shall be allocated among such individuals in the 
     manner determined by them.''.

     SEC. 10043. CONTRIBUTIONS TO CANDIDATES FROM STATE AND LOCAL 
                   COMMITTEES OF POLITICAL PARTIES TO BE 
                   AGGREGATED.

       Section 315(a) of FECA (2 U.S.C. 441a(a)) is amended by 
     adding at the end the following new paragraph:
       ``(9) Notwithstanding paragraph (5)(B), a candidate for 
     Federal office may not accept, with respect to an election, 
     any contribution from a State or local committee of a 
     political party (including any subordinate committee of such 
     committee), if such contribution, when added to the total of 
     contributions previously accepted from all such committees of 
     that political party, exceeds a limitation on contributions 
     to a candidate under this section.''.

     SEC. 10044. CONTRIBUTIONS AND EXPENDITURES USING MONEY 
                   SECURED BY PHYSICAL FORCE OR OTHER 
                   INTIMIDATION.

       Title III of FECA, as amended by section 10054, is amended 
     by adding at the end the following new section:


``CONTRIBUTIONS AND EXPENDITURES USING MONEY SECURED BY PHYSICAL FORCE 
                         OR OTHER INTIMIDATION

       ``Sec. 326. It shall be unlawful for any person to--
       ``(1) cause another person to make a contribution or 
     expenditure by using physical 
      [[Page S162]] force, job discrimination, financial 
     reprisals, or the threat of physical force, job 
     discrimination, or financial reprisal; or
       ``(2) make a contribution or expenditure utilizing money or 
     anything of value secured in the manner described in 
     paragraph (1).''.

     SEC. 10045. PROHIBITION OF ACCEPTANCE BY A CANDIDATE OF CASH 
                   CONTRIBUTIONS FROM ANY ONE PERSON AGGREGATING 
                   MORE THAN $100.

       Section 321 of FECA (2 U.S.C. 441g) is amended by inserting 
     ``, and no candidate or authorized committee of a candidate 
     shall accept from any one person,'' after ``make''.
                       Subtitle E--Miscellaneous

     SEC. 10051. PROHIBITION OF LEADERSHIP COMMITTEES.

       Section 302(e) of FECA (2 U.S.C. 432(e)) is amended--
       (1) by amending paragraph (3) to read as follows:
       ``(3) No political committee that supports or has supported 
     more than one candidate may be designated as an authorized 
     committee, except that--
       ``(A) a candidate for the office of President nominated by 
     a political party may designate the national committee of 
     such political party as the candidate's principal campaign 
     committee, but only if that national committee maintains 
     separate books of account with respect to its functions as a 
     principal campaign committee; and
       ``(B) a candidate may designate a political committee 
     established solely for the purpose of joint fundraising by 
     such candidates as an authorized committee.''; and
       (2) by adding at the end the following new paragraph:
       ``(6)(A) A candidate for Federal office or any individual 
     holding Federal office may not establish, finance, maintain, 
     or control any Federal or non-Federal political committee 
     other than a principal campaign committee of the candidate, 
     authorized committee, party committee, or other political 
     committee designated in accordance with paragraph (3). A 
     candidate for more than one Federal office may designate a 
     separate principal campaign committee for each Federal 
     office. This paragraph shall not preclude a Federal 
     officeholder who is a candidate for State or local office 
     from establishing, financing, maintaining, or controlling a 
     political committee for election of the individual to such 
     State or local office.
       ``(B) For one year after the effective date of this 
     paragraph, any political committee established before such 
     date but which is prohibited under subparagraph (A) may 
     continue to make contributions. At the end of that period 
     such political committee shall disburse all funds by one or 
     more of the following means: making contributions to an 
     entity qualified under section 501(c)(3) of the Internal 
     Revenue Code of 1986; making a contribution to the treasury 
     of the United States; contributing to the national, State or 
     local committees of a political party; or making 
     contributions not to exceed $1,000 to candidates for elective 
     office.''.

     SEC. 10052. TELEPHONE VOTING BY PERSONS WITH DISABILITIES.

       (a) Study of Systems To Permit Persons With Disabilities To 
     Vote by Telephone.--
       (1) In general.--The Federal Election Commission shall 
     conduct a study to determine the feasibility of developing a 
     system or systems by which persons with disabilities may be 
     permitted to vote by telephone.
       (2) Consultation.--The Federal Election Commission shall 
     conduct the study described in paragraph (1) in consultation 
     with State and local election officials, representatives of 
     the telecommunications industry, representatives of persons 
     with disabilities, and other concerned members of the public.
       (3) Criteria.--The system or systems developed pursuant to 
     paragraph (1) shall--
       (A) propose a description of the kinds of disabilities that 
     impose such difficulty in travel to polling places that a 
     person with a disability who may desire to vote is 
     discouraged from undertaking such travel;
       (B) propose procedures to identify persons who are so 
     disabled; and
       (C) describe procedures and equipment that may be used to 
     ensure that--
       (i) only those persons who are entitled to use the system 
     are permitted to use it;
       (ii) the votes of persons who use the system are recorded 
     accurately and remain secret;
       (iii) the system minimizes the possibility of vote fraud; 
     and
       (iv) the system minimizes the financial costs that State 
     and local governments would incur in establishing and 
     operating the system.
       (4) Requests for proposals.--In developing a system 
     described in paragraph (1), the Federal Election Commission 
     may request proposals from private contractors for the design 
     of procedures and equipment to be used in the system.
       (5) Physical access.--Nothing in this section is intended 
     to supersede or supplant efforts by State and local 
     governments to make polling places physically accessible to 
     persons with disabilities.
       (6) Deadline.--The Federal Election Commission shall submit 
     to Congress the study required by this section not later than 
     1 year after the effective date of this Act.

     SEC. 10053. CERTAIN TAX-EXEMPT ORGANIZATIONS NOT SUBJECT TO 
                   CORPORATE LIMITS.

       Section 316 of FECA (2 U.S.C. 441b) is amended by adding at 
     the end the following new subsection:
       ``(c) Prohibitions Not To Apply To Independent Expenditures 
     of Certain Tax-Exempt Organizations.--(1) Nothing in this 
     section shall preclude a qualified nonprofit corporation from 
     making independent expenditures (as defined in section 
     301(17)).
       ``(2) For purposes of this subsection, the term `qualified 
     nonprofit corporation' means a corporation exempt from 
     taxation under section 501(a) of the Internal Revenue Code of 
     1986 which is described in section 501(c)(4) of such Code and 
     which meets the following requirements:
       ``(A) Its only express purpose is the promotion of 
     political ideas.
       ``(B) It cannot and does not engage in any activities that 
     constitute a trade or business.
       ``(C) Its gross receipts for the calendar year have not 
     (and will not) exceed $100,000, and the net value of its 
     total assets at any time during the calendar year do not 
     exceed $250,000.
       ``(D) It was not established by a person described in 
     section 501(c)(6) of the Internal Revenue Code of 1986 that 
     is exempt from taxation under section 501(a) of such Code, a 
     corporation engaged in carrying out a trade or business, or a 
     labor organization, and it cannot and does not directly or 
     indirectly accept donations of anything of value from any 
     such person, corporation, or labor organization.
       ``(E) It--
       ``(i) has no shareholder or other person affiliated with it 
     that could make a claim on its assets or earnings, and
       ``(ii) offers no incentives or disincentives for 
     associating or not associating with it other than on the 
     basis of its position on any political issue.
       ``(3) If a major purpose of a qualified nonprofit 
     corporation is the making of independent expenditures, and 
     the requirements of section 301(4) are met with respect to 
     the corporation, the corporation shall be treated as a 
     political committee.
       ``(4) All solicitations by a qualified nonprofit 
     corporation shall include a notice informing contributors 
     that donations may be used by the corporation to make 
     independent expenditures.
       ``(5) A qualified nonprofit corporation shall file reports 
     as required by section 304 (c) and (d).

     SEC. 10054. AIDING AND ABETTING VIOLATIONS OF FECA.

       Title III of FECA, as amended by section 10035, is amended 
     by adding at the end the following new section:


                    ``AIDING AND ABETTING VIOLATIONS

       ``Sec. 325. With reference to any provision of this Act 
     that places a requirement or prohibition on any person acting 
     in a particular capacity, any person who knowingly aids or 
     abets the person in that capacity in violating that provision 
     may be proceeded against as a principal in the violation.''.

     SEC. 10055. CAMPAIGN ADVERTISING THAT REFERS TO AN OPPONENT.

       Title III of FECA, as amended by section 10002, is amended 
     by adding at the end the following new section:


           ``campaign advertising that refers to an opponent

       ``Sec. 328. (a) Candidates.--A candidate or candidate's 
     authorized committee that places in the mail a campaign 
     advertisement or any other communication to the general 
     public that directly or indirectly refers to an opponent or 
     the opponents of the candidate in an election, with or 
     without identifying any opponent in particular, shall file an 
     exact copy of the communication with the Commission and with 
     the Secretary of State of the candidate's State by no later 
     than 12:00 p.m. on the day on which the communication is 
     first placed in the mail to the general public.
       ``(b) Persons Other Than Candidates.--A person other than a 
     candidate or candidate's authorized committee that places in 
     the mail a campaign advertisement or any other communication 
     to the general public that--
       ``(1) advocates the election of a particular candidate in 
     an election; and
       ``(2) directly or indirectly refers to an opponent or the 
     opponents of the candidate in the election, with or without 
     identifying any opponent in particular,
     shall file an exact copy of the communication with the 
     Commission and with the Secretary of State of the candidate's 
     State by no later than 12:00 p.m. on the day on which the 
     communication is first placed in the mail to the general 
     public.''.

     SEC. 10056. LIMIT ON CONGRESSIONAL USE OF THE FRANKING 
                   PRIVILEGE.

       Section 3210(a)(6)(A) of title 39, United States Code, is 
     amended to read as follows:
       ``(A) A Member of Congress may not mail any mass mailing as 
     franked mail during a year in which there will be an election 
     for the seat held by the Member during the period between 
     January 1 of that year and the date of the general election 
     for that office, unless the Member has made a public 
     announcement that the Member will not be a candidate for 
     reelection to that seat or for election to any other Federal 
     office.''.
              Subtitle F--Effective Dates; Authorizations

     SEC. 10061. EFFECTIVE DATE.

       Except as otherwise provided in this title, the amendments 
     made by, and the provisions of, this title shall take effect 
     on the date of the enactment of this title.

     SEC. 10062. BUDGET NEUTRALITY.

       (a) Delayed Effectiveness.--The provisions of this title 
     (other than this section) shall not be effective until the 
     Director of 
      [[Page S163]] the Office of Management and Budget certifies 
     that the estimated costs under section 252 of the Balanced 
     Budget and Emergency Deficit Control Act of 1985 have been 
     offset by the enactment of legislation effectuating this 
     title.
       (b) Funding.--Legislation effectuating this title shall not 
     provide for general revenue increases, reduce expenditures 
     for any existing Federal program, or increase the Federal 
     budget deficit.

     SEC. 10063. SEVERABILITY.

       Except as provided in section 10001(c), if any provision of 
     this title (including any amendment made by this title), or 
     the application of any such provision to any person or 
     circumstance, is held invalid, the validity of any other 
     provision of this title, or the application of such provision 
     to other persons and circumstances, shall not be affected 
     thereby.

     SEC. 10064. EXPEDITED REVIEW OF CONSTITUTIONAL ISSUES.

       (a) Direct Appeal to Supreme Court.--An appeal may be taken 
     directly to the Supreme Court of the United States from any 
     interlocutory order or final judgment, decree, or order 
     issued by any court ruling on the constitutionality of any 
     provision of this title or amendment made by this title.
       (b) Acceptance and Expedition.--The Supreme Court shall, if 
     it has not previously ruled on the question addressed in the 
     ruling below, accept jurisdiction over, advance on the 
     docket, and expedite the appeal to the greatest extent 
     possible.

     SEC. 10065. REGULATIONS.

       The Federal Election Commission shall prescribe any 
     regulations required to carry out the provisions of this 
     title within 9 months after the effective date of this title.

  Mr. GLENN. Mr. President, Senator Sam Ervin, a great constitutional 
scholar, once said that Congress is ``like a doctor prescribing 
medicine for a patient that he himself would not take.'' I agree.
  By enacting laws for others, and then exempting ourselves, we have 
done great damage to the public perception of Congress. When I travel 
in Ohio and other parts of the country, I find that people are 
especially irritated that we do not have to follow the rules like 
everybody else. Businessmen, especially, tell me that we in Congress 
cannot understand the real impact of our laws, because we do not have 
to follow them back here on Capitol Hill.
  But there is an even more important principle at stake--to continue 
to deprive our employees of the full protection of the law is wrong. 
Let me be clear: I am not just talking about our legislative and 
administrative personnel--whom many people think of in terms of Capitol 
Hill staffers. There are also the cleaning crews, and the police, and 
the restaurant workers, and the parking lot attendants, and the 
plumbers, and the window washers--all of the workers who do not enjoy 
the same rights as every other American not employed by the Congress.
  I am very pleased that, in these opening days of the 104th Congress, 
we can finally do what is right for these people, and eliminate this 
congressional double standard under which we have enacted laws that 
apply to everyone but ourselves.
  This reform is long overdue. Our efforts to apply the law on Capitol 
Hill go back many years. In 1978--only a few years after I came to the 
Senate--I proposed a resolution to assure that all Senate employees 
would be protected against employment discrimination. In explaining why 
we needed this resolution, I said that Congress was The Last 
Plantation. Some of my colleagues were not happy with me for this. But 
the employees knew that what I said was true.
  There resolution in 1978 did not pass, and it is only in the last few 
years that we have finally enacted substantial legal protection for 
Senate employees. Our Senate employees are now covered under the civil 
rights laws and certain other employment laws, and they can take their 
cases to the U.S. Court of Appeals. Despite this progress, however, we 
still have an unacceptable patchwork quilt of coverage and exemption 
here on Capitol Hill.
  It has not been easy to solve this problem. My guiding principle has 
been
 that we in Congress should be subject to the same laws as apply to a 
business back in our home State. But many Members also believe that the 
Constitution requires us to preserve substantial independence of the 
Senate and of the House of Representatives.

  This is not simply a matter of personal prerogative or ego. For the 
private sector, these laws are normally implemented by the executive 
branch and the judicial branch. But many Senators--both Democrats and 
Republicans--have expressed genuine concern about politically motivated 
prosecutions that might result if we ignore the principle of separation 
of powers as we apply these laws to Congress.
  Last year, the majority leader, Senator Mitchell, asked me--as 
chairman of the Governmental Affairs Committee--to try to find a 
bipartisan solution. I started with the excellent bill introduced last 
year by Senators Lieberman and Grassley. Then, together with Senator 
Lieberman, Senator Grassley, and other Senators from both sides of the 
aisle, we worked hard to reach a solution--and we succeeded. We 
included even stronger application of the laws to Congress, and we also 
included stronger protection of the constitutional independence of the 
Senate and the House. Our legislation won broad bipartisan support, but 
it was unfortunately blocked on the Senate floor in the closing days of 
the 103d Congress.
  I am very gratified that our solution to congressional coverage now 
stands an excellent chance of being enacted by the new Congress. The 
new Democratic leader, Senator Daschle, is introducing our 
congressional accountability legislation, as part of a comprehensive 
congressional reform proposal.
  This proposal includes a number of reforms of the way Congress does 
business, including measures on lobbying disclosure and gifts to 
Members. These essential measures, which I support, were also blocked--
along with congressional coverage--at the end of the last Congress.
  The first part of the Democratic leader's bill, which deals with 
congressional coverage, is entitled the Congressional Accountability 
Act of 1995. This legislation can be briefly summarized in five key 
elements.
  First, all of the rights and protections under the civil rights laws, 
other employment statutes, and the public-access requirements of the 
Americans with Disabilities Act would apply to the legislative branch. 
This includes the Senate, the House of Representatives, and our support 
agencies.
  Second, a new compliance office would be established within the 
legislative branch to handle claims and to issue
rules. The compliance office would be headed by an independent five-
  person board of directors removable only for cause.It is unfortunate 
that we have to create a new enforcement bureaucracy, at a time when we 
are more concerned about streamlining the government. But many Members 
believe that it would violate the constitutional separation of powers 
to have the executive branch enforce these laws against Congress.
  Third, any employee who believes there has been a violation could 
receive counseling and mediation services from the new office. If the 
employee's claim is not resolved by counseling or mediation, the 
employee may file a complaint with the compliance office and receive a 
hearing and decision from a hearing officer. This decision may be 
appealed to the board and to the U.S. Court of Appeals.
  Fourth, instead of filing a complaint with the compliance office 
after counseling and mediation, the employee may elect to sue in U.S. 
District Court. A jury trial may be requested under applicable law.
  Fifth, the board will appoint a general counsel, who will enforce 
OSHA, collective bargaining requirements, and other laws.
  A similar bill is being introduced as part of Senator Dole's top-
priority legislation. With this strong bipartisan support, I am very 
optimistic that congressional coverage legislation can now be promptly 
enacted.
  So I am very pleased that there now appears to be bipartisan support 
for the Congressional Accountability Act. And I will be as pleased as 
anyone when it is finally adopted.
  But make no mistake about it: There is nothing new about this 
measure. Congressional coverage legislation was adopted by the 
democratically controlled House of Representatives last year. 
Congressional coverage legislation was sent to the Senate floor by my 
democratically controlled Governmental Affairs Committee last year.
  And, unfortunately, it died in the final days of the democratically 
controlled Congress in that scorched Earth atmosphere--the worst I have 
ever seen in my 20 years in the Senate--that saw 
 [[Page S164]] Members opposing for the sake of opposing--and even 
killing good legislation that they themselves supported--in order to 
deny credit to the majority party.
  Well, I will tell you something. I was not proud of what went on in 
those final days, and I do not think the American people were either. 
For they know that America did not rise to become the greatest nation 
in the world by trying to out-delay, out-complain, and out-divide our 
political opposition.
  And--although it is easier said than done--it is high time that 
Members started to put the national interest first. To calculate their 
actions based not on the narrow political calculations of today--but on 
what is best for the country tomorrow.
  If Republicans and Democrats alike can just remember that, I believe 
that we can have a very productive session.
  The Congressional Accountability Act is a good place to start. And I 
am very pleased that it is being introduced as part of Senator 
Daschle's comprehensive congressional reform proposal.
      Key Elements of the Congressional Accountability Act of 1995

       1. Rights and Protections under Civil Rights and other 
     employment statutes and Americans with Disabilities Act would 
     apply fully to the House, the Senate, and all 
     instrumentalities.
       2. A new compliance office would be established within the 
     Legislative Branch to handle claims and issue rules.
       The compliance office would be headed by an independent 5-
     percent Board of Directors removable only for cause.
       3. An employee who believes there has been a violation 
     could receive counseling and mediation services from the new 
     office.
       4. If the employee's claim is not resolved by counseling or 
     mediation, the employee may file a complaint with the 
     compliance office and receive a hearing and decision from a 
     hearing officer.
       This decision may be appealed to the Board and to the 
     United States Court of Appeals.
       5. Instead of filing a complaint with the compliance office 
     after counseling and medication, the employee may elect to 
     sue in United States District Court. A jury trial may be 
     requested under applicable law.
       6. The General Counsel, to be appointed by the Board, will 
     enforce OSHA, collective bargaining requirements, and other 
     laws.
 Summary of Costs and Other Impacts of Congressional Accountability Act

       The CBO letter, at pages 44-49 of the GAC Report (and the 
     CBO letter for the House bill) describes the following costs:
       1. New compliance office:
       $1 million/year for 2 years, during start-up.
       $2-3 million/year thereafter, including enforcement 
     procedures and OSHA inspections.
       2. Settlements and awards to employees:
       $0.5-1 million/year.
       3. Federal labor-management relations
       $1 million/year for lawyers and personnel officers.
       4. OSHA
       Existing standards--will require change in practices rather 
     than significant additional space or cost.
       Possible future standards (e.g., ergonomic equipment; air 
     quality)--without specific standards, cost cannot be 
     predicted.
       5. Fair Labor Standards
       Capitol police--$0.8 million/year.
       Other employees--CBO could not estimate. [CBO assumed the 
     compliance office would have wide discretion in establishing 
     rules and in allowing compensatory time instead of overtime. 
     This is incorrect: bill requires private-sector rules.]
       6. Anti-discrimination laws--no additional cost, because 
     these requirements already apply under statutes or rules.
       7. Polygraph protection--no effect; polygraphs are not 
     used.
       8. Plant closing--no effect; no mass layoffs are 
     anticipated.
       9. Veterans rehiring--not scored by CBO; added to the 
     legislation this year.
       TOTAL ESTIMATE: $1 million/year for the 2 years, $4-5 
     million/year thereafter.
                     Summary of Laws and Procedures


                           1. APPLICABLE LAWS

       a. Laws against employment discrimination:
       Title VII of Civil Rights Act of 1964. (Race, religion, 
     national origin)
       Age Discrimination in Employment Act of 1967.
       Title I of the Americans with Disabilities Act of 1990.
       Rehabilitation Act of 1973. (Discrimination against 
     disabled employees)
       These laws already apply; the bill would strengthen 
     enforcement.
       b. Family and Medical Leave Act of 1993. (Employees may 
     take up to 3 months off per year, for personal or family 
     medical needs, including birth)
       Already applies; the bill would strengthen enforcement.
       c. Fair Labor Standards Act of 1938. (Minimum wage; 
     overtime; sex discrimination in pay)
       Use of volunteers would be allowed under the same standards 
     as apply to state and local governments.
       For employees whose work schedule depends on the schedule 
     of house or Senate, special rules will be developed for 
     overtime, comparable to statutory provisions for industries 
     with irregular work schedule.
       d. Americans with Disabilities Act of 1990 (access to 
     public services and public accommodations.
       Already applies; the bill would allow enforcement.
       e. Occupational Safety and Health Act of 1970 (``OSHA'').
       f. Federal Service Labor-Management Relations Statute.
       Application to personal, committee, or other political 
     offices would be deferred until rules are issued by the new 
     Office and approved by Congress.
       g. Employee Polygraph Protection Act. (Prohibits use of 
     polygraphs for employees and job applicants, with exceptions 
     like national security and policy)
       h. Worker Adjustment and Retraining Act. (Requires 2 months 
     advance written notice of plant closing or mass layoff, with 
     exceptions like necessity.)
       i. Law on veterans' employment and reemployment. (Veterans 
     can get job back after up to 5 years' military service. They 
     also get the right to RAMSPEK into the Executive Branch.)


                        2. Procedures For Remedy

       a. For employee claims (discrimination, family/medical 
     leave standards, fair labor standards, polygraph, plant 
     closing, veterans rehiring) there would be a 5-step 
     procedure:
       counseling.
       Mediation.
       Trial before a hearing officer.
       Appeal to the new Office's Board
       Appeal to the U.S. Court of Appeals.or
       Employees could elect to take case to Federal District 
     Court after the mediation step, instead of the hearing 
     officer.
       b. For Americans with Disabilities Act:
       A member of the public may submit a charge to the General 
     Counsel of the Office.
       Only the General Counsel may call for mediation, or file a 
     complaint.
       Appeal to the Board.
       Appeal to the U.S. Court of Appeals.
       c. For OSHA, the following procedural steps will be 
     available:
       The General Counsel will inspect all facilities, using OSHA 
     detailees, and issue citations.
       Disputes regarding citations will be referred to a hearing 
     officer.
       Appeal to the Board.
       Appeal to the Court of Appeals.
       The Board may also approve requests for temporary 
     variances.
       d. For collective bargaining law, the following procedural 
     steps will be available:
       Petitions (e.g., requesting recognition of an exclusive 
     representative) will be considered by the Board, and could be 
     referred by the Board to a hearing officer.
       Unfair labor practice charges--would be submitted to the 
     General Counsel, who will investigate and may file a 
     complaint. The complaint would be referred to a hearing 
     officer for decision, subject to appeal to the Board.
       Negotiation impasses would be submitted to mediators.
       court of Appeals review of Board decisions.

  Mr. LEAHY. Mr. President, I am pleased to cosponsor S. 10. This bill 
could be called the Golden Rule bill because its premise boils down to 
Congress doing unto ourselves as we do unto others. I would be tempted 
to say that this is a reform whose time has come, if it were not 
already so painfully overdue.
  When I first arrived in Washington as a newly elected Senator from 
Vermont, I was struck by the double standard of rights. Congress passed 
laws that applied to employers in this country--except Congress. It was 
alien to anything I had ever experienced.
  Contrary to advice from older and far more senior Members of the 
Senate, in 1978 I introduced a bill that would extend coverage of 
several important civil rights and labor laws to Congress. It was a 
simple bill, founded on a simple premise: Congress, like everyone else 
in the country, must be governed by the law.
  Congress was not the last plantation, where everyone except the 
master was subject to the master's rules. The Senate represented the 
very seat of our democracy--and it was imperative that it act like one.
  I introduced the bill, explaining on the Senate floor why Congress 
must set an example to the public. The reaction of other Senators was 
not entirely friendly. As I was leaving the Senate floor, a senior 
Senator stopped to ask where I was rushing off to. I explained that I 
had a plane to catch back to Vermont. The Senator remarked, ``Good, I 
hope you stay there.''
  My efforts to apply laws to Congress did not get much support in 
1978. But I believed in it, and have continued to introduce it in the 
years since then. Now, almost 17 years after I first introduced 
congressional coverage legislation, we seem finally ready to act.
  [[Page S165]] We have passed landmark legislation like the Civil 
Rights Act of 1964, the Fair Labor Standards Act, the Occupational 
Safety and Health Act and the Rehabilitation Act of 1973, to protect 
the civil, social, physical, and economic working rights for American 
workers. What we failed to do each time we passed legislation was make 
sure that Congress was covered. By exempting itself from important 
civil rights and labor laws, Congress denied to the men and women who 
serve us every day the rights and protections afforded to other 
American workers, simply because of the place of their employment.
  The result has come home to roost. The American people question 
whether Congress understands their problems in part because Congress 
does not have to live under the same rules as other Americans. This 
bill is a step toward regaining the confidence of the American people.
  Congress cannot be above the laws it passes. It must provide to all 
its employees the same protections it requires other employers to give. 
The American people want this body to play by the same rules and 
observe the same laws that we impose on everyone else.
  Unlike the Republican version of the congressional coverage bill, the 
Democratic alternative (S. 10), which I am glad to cosponsor, contains 
provisions for lobbying reform, and limits on gifts to Members and 
congressional staff. The Republican version is called the Congressional 
Accountability Act, even though it fails to address matters that are 
necessary for it to amount to true accountability to the American 
people. In fact, that bill is limited to extending only a few 
employment laws to Congress but not other critical measures that we 
were stopped from approving last year by our Republican colleagues. 
That bill does not address the key issues needed for accountability 
that we have been trying to act on for some time.
  In particular, I refer to lobbying reform, the gift ban and campaign 
finance reform legislation that was bottled up again last year. We 
should be moving on these important fronts if we are serious about 
accountability. The Republican bill merely lends some institutional 
responsibility to our remaining employees. Accountability should 
include responsibility to the rest of the American people, as well. 
That means reforming the way money can affect the legislative process. 
I am supporting S. 10 because it goes further than the Republican 
alternative and takes affirmative steps to provide that accountability.
  I must observe, however, that this effort is deficient in one key 
regard for its failure to increase sunshine and public information 
about Congress. I have previously pressed to have principles of the 
Freedom of Information Act and Privacy Act apply to Congress. We need 
to have more open processes if we hope to restore Americans' belief in 
our representative legislative bodies. While it is true that simply 
applying FOIA questions, this bill does nothing to begin answering 
those questions and makes no effort toward increasing sunshine in our 
institutions of government.
  I have no doubt that giving people greater access to information on 
how decisions are made in Congress would go a long way to reducing the 
cynicism that the American people have about what we do here. We must 
work to find ways to increase our openness and accessibility to the 
public.
                                 ______

      By Mr. KYL:
  S. 11. A bill to award grants to States to promote the development of 
alternative dispute resolution systems for medical malpractice claims, 
to generate knowledge about such systems through expert data gathering 
and assessment activities, to promote uniformity and to curb excesses 
in State liability systems through federally-mandated liability 
reforms, and for other purposes; to the Committee on the Judiciary.


                  MEDICAL CARE INJURY COMPENSATION ACT

  Mr. KYL. Mr. President, I rise as the sponsor of S. 11, the ``Medical 
Care Injury Compensation Act of 1995.'' As the 104th Congress begins to 
consider targeted, market based health care reform options, we should 
remember that medical malpractice costs are an integral component of 
the high cost of medical care and health insurance. The current medical 
malpractice system encourages litigation and exorbitant out-of-court 
settlements. According to a Lewin-VHI study, direct liability costs 
have been growing at four times the rate of inflation. Defensive 
medicine is projected to add as much as $76 billion annually to 
national health care costs by the year 2000. Doctors' fear is 
reasonable when viewed in light of a study done by the Institute of 
Medicine which found that 40% of all doctors and 70% of all 
obstetrician-gynecologists will be sued during their careers.
  Mr. President, medical liability costs do not result in the 
productive use of our national health care dollars. According to a 
study by the Hudson Institute, of the billions spent annually on 
medical liability costs, 57 cents out of each dollar goes to lawyers 
rather than injured patients. This study concluded that medical 
liability costs added $450 in direct and indirect costs to each 
hospital admission. Nationally, this represents more than 5% of the 
average hospital's operating expenses.
  In an effort to address this problem through sensible targeted 
reform, I have introduced S. 11. This legislation caps non-economic 
damages such as pain and suffering at $250,000; imposes a limit on 
attorneys' fees of 25% of the first $150,000 recovered and 15% of any 
amount in excess of $150,000; provides for periodic payments where 
damages for future economic loss exceed $100,000; provides for 
mandatory offsets for damages paid by a ``collateral source;'' and 
reforms ``joint and several'' liability.
  S. 11 also directs the Secretary of Health and Human Services to make 
grants to the states for the implementation and evaluation of 
alternative dispute resolution (ADR) systems.
  Mr. President, I believe S. 11 offers an important legislative 
mechanism for controlling national health care expenditures. I hope may 
colleagues will join me in support S. 11.
                                 ______

      By Mr. ROTH (for himself, Mr. Breaux, Mr. Pryor, and Mr. 
        Murkowski):
  S. 12. A bill to amend the Internal Revenue Code of 1986 to encourage 
savings and investment through individual retirement accounts, and for 
other purposes; to the Committee on Finance.


                 the restoration of the ira act of 1995

  Mr. ROTH. Mr. President, today we re-introduce the Super IRA, a 
savings plan that is well-known as the Bentsen-Roth IRA, and now the 
Roth-Breaux IRA. The former Chairman of the Finance Committee, and 
Secretary of the Treasury, Lloyd Bentsen, joined with me to offer his 
leadership on this almost four years ago--and now I believe we are on 
the verge of completing our work of seeing this bill adopted.
  Today I'm proud to be joined by Senator John Breaux, in introducing 
this bill. I believe that this bill is extremely well conceived and 
promotes the two most important issues facing us today: the family and 
the failure of our economy.
  It is clear, after passing the Bentsen-Roth IRA twice in 1992, that 
Congress not only understands the need to strengthen family and the 
economy, but that Congress is willing to work in bipartisan cooperation 
to pass this legislation. We have done it before; we can do it again.
  This Super IRA will do much not only to serve our families and help 
our nation's savings rate, but it will also restore equity to spouses 
who want to participate in the program. The lack of savings in this 
country, as we all know, has reached crisis proportions. Chairman Alan 
Greenspan, at the Federal Reserve, has said that the single most 
important long-term economic issue for this country is savings--savings 
that are essential for jobs, opportunity, and growth. This bill will 
help bring new savers into the act.
  Savings is not only important to our nation's economy, it is also 
important to create security and self-reliance in our families. This 
Super IRA will help Americans. It is flexible, allowing withdrawals to 
be made penalty-free to purchase first homes, to pay for unusually 
large medical bills, college educations, and to help families during 
extended periods of unemployment.
  One of the primary benefits of this Super IRA is that parents and 
grandparents are able to draw down their IRAs without penalty to pay 
their children's college education, or contribute 
 [[Page S166]] toward their children's first home. Children and 
grandchildren can use their IRAs to help their parents and 
grandparents. This is what real ``opportunity'' is all about--
``opportunity'' for the family--``opportunity'' because once again 
Americans can focus on self-reliance and prepare with greater certainty 
for their futures.
  Let me stress, this Super IRA eliminates the unequal treatment of 
spouses that now exists under current law. This bill will allow spouses 
[husbands or wives] who work at home to make equal IRA contributions, 
up to $2,000, in their own accounts.
  This promotes personal responsibility. The individual is enabled to 
provide for his or her family, and does not have to rely on the limited 
hand of government for their support.
  Mr. President, it's clear to see why this is a bill whose time has 
come. We have passed it before--in both Houses of Congress--now we must 
pass it again. It serves the individual. It serves the family. It 
serves the nation. It is equitable, restoring spousal contributions to 
where they should be. It is flexible, offering penalty-free withdrawals 
for life's necessities. It promises the vital capital formation America 
needs to invest in its future. And it builds upon the very important 
concept of self-reliance. Mr. President, this bill must be passed, 
again.
  Mr. President, I ask unanimous consent that the text of the bill and 
additional material be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
                                 S. 12

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This Act may be cited as the ``Savings 
     and Investment Incentive Act of 1995''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
                 TITLE I--RETIREMENT SAVINGS INCENTIVES
                Subtitle A--Restoration of IRA Deduction

     SEC. 101. RESTORATION OF IRA DEDUCTION.

       (a) Phase-Up of Income Limits.--
       (1) In general.--Subparagraph (B) of section 219(g)(3) 
     (relating to applicable dollar amount) is amended to read as 
     follows:
       ``(B) Applicable dollar amount.--The term `applicable 
     dollar amount' means the following:
       ``(i) In the case of a taxpayer filing a joint return:

The applicable dollar amount is::
$65,000................................................................
$90,000................................................................
$115,000...............................................................
$140,000...............................................................

       ``(ii) In the case of any other taxpayer (other than a 
     married individual filing a separate return):

The applicable dollar amount is::
$50,000................................................................
$75,000................................................................
$100,000...............................................................
$125,000...............................................................

       ``(iii) In the case of a married individual filing a 
     separate return, zero.''.
       (2) Unlinking of spousal rule.--Paragraph (1) of section 
     219(g) (relating to limitation on deduction for active 
     participants in certain pension plans) is amended by striking 
     ``or the individual's spouse''.
       (b) Termination of Income Limits.--
       (1) In General.--Section 219 (relating to deduction for 
     retirement savings), as amended by section 102, is amended by 
     striking subsection (g) and by redesignating subsections (h) 
     and (i) as subsection (g) and (h), respectively.
       (2) Technical and conforming amendments.--
       (A) Subsection (f) of section 219 is amended by striking 
     paragraph (7).
       (B) Paragraph (5) of section 408(d) is amended by striking 
     the last sentence.
       (C) Section 408(o) is amended by adding at the end the 
     following new paragraph:
       ``(5) Termination.--This subsection shall not apply to any 
     designated nondeductible contribution for any taxable year 
     beginning after December 31, 1998.''.
       (D) Section 408A(c)(2)(A), as added by section 111, is 
     amended by striking ``(computed without regard to subsections 
     (b)(4) and (g) of such section)'' and inserting ``(computed 
     without regard to section 219(b)(4))''.
       (E) Subsection (b) of section 4973 is amended by striking 
     the last sentence.
       (c) Effective Dates.--
       (1) Phase-up.--The amendments made by subsection (a) shall 
     apply to taxable years beginning after December 31, 1994.
       (2) Termination.--The amendments made by subsection (b) 
     shall apply to taxable years beginning after December 31, 
     1998.

     SEC. 102. INFLATION ADJUSTMENT FOR DEDUCTIBLE AMOUNT.

       (a) In General.--Section 219, as amended by section 101(a), 
     is amended by redesignating subsection (h) as subsection (i) 
     and by inserting after subsection (g) the following new 
     subsection:
       ``(h) Cost-of-Living Adjustments.--
       ``(1) Deduction amount.--
       ``(A) In general.--In the case of any taxable year 
     beginning in a calendar year after 1995, the $2,000 amount 
     under subsection (b)(1)(A) shall be increased by an amount 
     equal to the product of $2,000 and the cost-of-living 
     adjustment for the calendar year.
       ``(B) Rounding to next lowest $500.--If the amount to which 
     $2,000 would be increased under subparagraph (A) is not a 
     multiple of $500, such amount shall be rounded to the next 
     lowest multiple of $500.
       ``(2) Related amounts.--Each of the dollar amounts 
     contained in subsection (c)(2) shall be increased at the same 
     time, and by the same amount, as the increase under paragraph 
     (1).
       ``(3) Cost-of-living adjustment.--For purposes of this 
     subsection:
       ``(A) In general.--The cost-of-living adjustment for any 
     calendar year is the percentage (if any) by which--
       ``(i) the CPI for such calendar year, exceeds
       ``(ii) the CPI for 1994.
       ``(B) CPI for any calendar year.--The CPI for any calendar 
     year shall be determined in the same manner as under section 
     1(f)(4).''.
       (b) Conforming Amendments.--
       (1) Section 408(a)(1) is amended by striking ``in excess of 
     $2,000 on behalf of any individual'' and inserting ``on 
     behalf of any individual in excess of the amount in effect 
     for such taxable year under section 219(b)(1)(A)''.
       (2) Section 408(b)(2)(B) is amended by striking ``$2,000'' 
     and inserting ``the dollar amount in effect under section 
     219(b)(1)(A)''.
       (3) Section 408(j) is amended by striking ``$2,000''.

     SEC. 103. HOMEMAKERS ELIGIBLE FOR FULL IRA DEDUCTION.

       (a) Spousal IRA Computed on Basis of Compensation of Both 
     Spouses.--Subsection (c) of section 219 (relating to special 
     rules for certain married individuals) is amended to read as 
     follows:
       ``(c) Special Rules for Certain Married Individuals.--
       ``(1) In general.--In the case of an individual to whom 
     this paragraph applies for the taxable year, the limitation 
     of paragraph (1) of subsection (b) shall be equal to the 
     lesser of--
       ``(A) $2,000, or
       ``(B) the sum of--
       ``(i) the compensation includible in such individual's 
     gross income for the taxable year, plus
       ``(ii) the compensation includible in the gross income of 
     such individual's spouse for the taxable year reduced by the 
     amount allowable as a deduction under subsection (a) to such 
     spouse for such taxable year.
       ``(2) Individuals to whom paragraph (1) applies.--Paragraph 
     (1) shall apply to any individual if--
       ``(A) such individual files a joint return for the taxable 
     year, and
       ``(B) the amount of compensation (if any) includible in 
     such individual's gross income for the taxable year is less 
     than the compensation includible in the gross income of such 
     individual's spouse for the taxable year.''.
       (b) Conforming Amendments.--
       (1) Paragraph (2) of section 219(f) (relating to other 
     definitions and special rules) is amended by striking 
     ``subsections (b) and (c)'' and inserting ``subsection (b)''.
       (2) Paragraph (2) of section 219(h), as added by section 
     102, is amended by striking ``Each of the dollar amounts'' 
     and inserting ``The dollar amount''.
       (3) Section 408(d)(5) is amended by striking ``$2,250'' and 
     inserting ``$2,000''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1994.

     SEC. 104. CERTAIN COINS AND BULLION NOT TREATED AS 
                   COLLECTIBLES.

       (a) In General.--Paragraph (3) of section 408(m) (relating 
     to exception for certain coin) is amended to read as follows:
       ``(3) Exception for certain coins and bullion.--For 
     purposes of this subsection, the term `collectible' shall not 
     include--
       ``(A) any coin certified by a recognized grading service 
     and traded on a nationally recognized electronic network, or 
     listed by a recognized wholesale reporting service, and--
       ``(i) which is or was at any time legal tender in the 
     country of issuance, or
       ``(ii) issued under the laws of any State, and
       ``(B) any gold, silver, platinum, or palladium bullion 
     (whether fabricated in the form of a coin or otherwise) of a 
     fineness equal to or exceeding the minimum fineness required 
     for metals which may be delivered in satisfaction of a 
     regulated futures contract subject to regulation by the 
     Commodity Futures Trading Commission under the Commodity 
     Exchange Act,

     if such coin or bullion is in the physical possession of a 
     trustee described under subsection (a) of this section.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1994.
     [[Page S167]] SEC. 105. COORDINATION OF IRA DEDUCTION LIMIT 
                   WITH ELECTIVE DEFERRAL LIMIT.

       (a) In General.--Section 219(b) (relating to maximum amount 
     of deduction) is amended by adding at the end the following 
     new paragraph:
       ``(4) Coordination with elective deferral limit.--The 
     amount determined under paragraph (1) or subsection (c)(1) 
     with respect to any individual for any taxable year shall not 
     exceed the excess (if any) of--
       ``(A) the maximum amount of elective deferrals of the 
     individual which are excludable from gross income for the 
     taxable year under section 402(g)(1), over
       ``(B) the amount so excluded.''.
       (b) Conforming Amendment.--Section 219(c), as amended by 
     section 104, is amended by adding at the end the following 
     new paragraph:
       ``(3) Cross reference.--

  ``For reduction in paragraph (1) amount, see subsection (b)(4).''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1994.
                Subtitle B--Nondeductible Tax-Free IRAs

     SEC. 111. ESTABLISHMENT OF NONDEDUCTIBLE TAX-FREE INDIVIDUAL 
                   RETIREMENT ACCOUNTS.

       (a) In General.--Subpart A of part I of subchapter D of 
     chapter 1 (relating to pension, profit-sharing, stock bonus 
     plans, etc.) is amended by inserting after section 408 the 
     following new section:

     ``SEC. 408A. IRA PLUS ACCOUNTS.

       ``(a) General Rule.--Except as provided in this section, an 
     IRA Plus account shall be treated for purposes of this title 
     in the same manner as an individual retirement plan.
       ``(b) IRA Plus Account.--For purposes of this title, the 
     term `IRA Plus account' means an individual retirement plan 
     which is designated at the time of establishment of the plan 
     as an IRA Plus account.
       ``(c) Treatment of Contributions.--
       ``(1) No deduction allowed.--No deduction shall be allowed 
     under section 219 for a contribution to an IRA Plus account.
       ``(2) Contribution limit.--The aggregate amount of 
     contributions for any taxable year to all IRA Plus accounts 
     maintained for the benefit of an individual shall not exceed 
     the excess (if any) of--
       ``(A) the maximum amount allowable as a deduction under 
     section 219 with respect to such individual for such taxable 
     year (computed without regard to subsections (b)(4) and (g) 
     of such section), over
       ``(B) the amount so allowed.
       ``(3) Rollover contributions.--
       ``(A) In general.--No rollover contribution may be made to 
     an IRA Plus account unless it is a qualified transfer.
       ``(B) Coordination with limit.--A rollover contribution 
     shall not be taken into account for purposes of paragraph 
     (2).
       ``(d) Tax Treatment of Distributions.--
       ``(1) In general.--Except as provided in this subsection, 
     any amount paid or distributed out of an IRA Plus account 
     shall not be included in the gross income of the distributee.
       ``(2) Exception for earnings on contributions held less 
     than 5 years.--
       ``(A) In general.--Any amount distributed out of an IRA 
     Plus account which consists of earnings allocable to 
     contributions made to the account during the 5-year period 
     ending on the day before such distribution shall be included 
     in the gross income of the distributee for the taxable year 
     in which the distribution occurs.
       ``(B) Cross reference.--

  ``For additional tax for early withdrawal, see section 72(t).

       ``(C) Ordering rule.--
       ``(i) First-in, first-out rule.--Distributions from an IRA 
     Plus account shall be treated as having been made--

       ``(I) first from the earliest contribution (and earnings 
     allocable thereto) remaining in the account at the time of 
     the distribution, and
       ``(II) then from other contributions (and earnings 
     allocable thereto) in the order in which made.

       ``(ii) Allocations between contributions and earnings.--Any 
     portion of a distribution allocated to a contribution (and 
     earnings allocable thereto) shall be treated as allocated 
     first to the earnings and then to the contribution.
       ``(iii) Allocation of earnings.--Earnings shall be 
     allocated to a contribution in such manner as the Secretary 
     may by regulations prescribe.
       ``(iv) Contributions in same year.--Except as provided in 
     regulations, all contributions made during the same taxable 
     year may be treated as 1 contribution for purposes of this 
     subparagraph.
       ``(3) Rollovers.--
       ``(A) In general.--Paragraph (2) shall not apply to any 
     distribution which is transferred in a qualified transfer to 
     another IRA Plus account.
       ``(B) Contribution period.--For purposes of paragraph (2), 
     the IRA Plus account to which any contributions are 
     transferred from another IRA Plus account shall be treated as 
     having held such contributions during any period such 
     contributions were held (or are treated as held under this 
     subparagraph) by the account from which transferred.
       ``(4) Special rules relating to certain transfers.--
       ``(A) In general.--Notwithstanding any other provision of 
     law, in the case of a qualified transfer to an IRA Plus 
     account from an individual retirement plan which is not an 
     IRS Plus account--
       ``(i) there shall be included in gross income any amount 
     which, but for the qualified transfer, would be includible in 
     gross income, but
       ``(ii) section 72(t) shall not apply to such amount.
       ``(B) Time for inclusion.--In the case of any qualified 
     transfer which occurs before January 1, 1997, any amount 
     includible in gross income under subparagraph (A) with 
     respect to such contribution shall be includible ratably over 
     the 4-taxable year period beginning in the taxable year in 
     which the amount was paid or distributed out of the 
     individual retirement plan.
       ``(e) Qualified Transfer.--For purposes of this section, 
     the term `qualified transfer' means a transfer to an IRA Plus 
     account from another such account or from an individual 
     retirement plan but only if such transfer meets the 
     requirements of section 408(d)(3).''.
       (b) Early Withdrawal Penalty.--Section 72(t), as amended by 
     section 201(c), is amended by adding at the end the following 
     new paragraph:
       ``(8) Rules relating to ira plus accounts.--In the case of 
     an IRA Plus account under section 408A--
       ``(A) this subsection shall only apply to distributions out 
     of such account which consist of earnings allocable to 
     contributions made to the account during the 5-year period 
     ending on the day before such distribution, and
       ``(B) paragraph (2)(A)(i) shall not apply to any 
     distribution described in subparagraph (A).''.
       (c) Excess Contributions.--Section 4973(b) is amended by 
     adding at the end the following new sentence: ``For purposes 
     of paragraphs (1)(B) and (2)(C), the amount allowable as a 
     deduction under section 219 shall be computed without regard 
     to section 408A.''
       (d) Conforming Amendment.--The table of sections for 
     subpart A of part I of subchapter D of chapter 1 is amended 
     by inserting after the item relating to section 408 the 
     following new item:

``Sec. 408A. IRA Plus accounts.''.

       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 1994.
       (2) Qualified transfers in 1994.--The amendments made by 
     this section shall apply to any qualified transfer during any 
     taxable year beginning in 1994.
                  TITLE II--PENALTY-FREE DISTRIBUTIONS

     SEC. 201. DISTRIBUTIONS FROM CERTAIN PLANS MAY BE USED 
                   WITHOUT PENALTY TO PURCHASE FIRST HOMES OR TO 
                   PAY HIGHER EDUCATION OR FINANCIALLY DEVASTATING 
                   MEDICAL EXPENSES.

       (a) In General.--Paragraph (2) of section 72(t) (relating 
     to exceptions to 10-percent additional tax on early 
     distributions from qualified retirement plans) is amended by 
     adding at the end the following new subparagraph:
       ``(D) Distributions from certain plans for first home 
     purchases or educational expenses.--Distributions to an 
     individual from an individual retirement plan, or from 
     amounts attributable to employer contributions made pursuant 
     to elective deferrals described in subparagraph (A) or (C) of 
     section 402(g)(3) or section 501(c)(18)(D)(iii)--
       ``(i) which are qualified first-time homebuyer 
     distributions (as defined in paragraph (6)), or
       ``(ii) to the extent such distributions do not exceed the 
     qualified higher education expenses (as defined in paragraph 
     (7)) of the taxpayer for the taxable year.''.
       (b) Financially Devastating Medical Expenses.--
       (1) In general.--Section 72(t)(3)(A) is amended by striking 
     ``(B),''.
       (2) Certain lineal descendants and ancestors treated as 
     dependents.--Subparagraph (B) of section 72(t)(2) is amended 
     by striking ``medical care'' and all that follows and 
     inserting ``medical care determined--
       ``(i) without regard to whether the employee itemizes 
     deductions for such taxable year, and
       ``(ii) by treating such employee's dependents as 
     including--

       ``(I) all children and grandchildren of the employee or 
     such employee's spouse, and
       ``(II) all ancestors of the employee or such employee's 
     spouse.''.

       (3) Conforming amendment.--Subparagraph (B) of section 
     72(t)(2) is amended by striking ``or (C)'' and inserting ``, 
     (C) or (D)''.
       (c) Definitions.--Section 72(t) is amended by adding at the 
     end the following new paragraphs:
       ``(6) Qualified first-time homebuyer distributions.--For 
     purposes of paragraph (2)(D)(i):
       ``(A) In general.--The term `qualified first-time homebuyer 
     distribution' means any payment or distribution received by 
     an individual to the extent such payment or distribution is 
     used by the individual before the close of the 60th day after 
     the day on which such payment or distribution is received to 
     pay qualified acquisition costs with respect to a principal 
     residence of a first-time homebuyer who is such individual, 
     the spouse of such individual, or any child, grandchild, or 
     ancestor of such individual or the individual's spouse.
     [[Page S168]]   ``(B) Qualified acquisition costs.--For 
     purposes of this paragraph, the term `qualified acquisition 
     costs' means the costs of acquiring, constructing, or 
     reconstructing a residence. Such term includes any usual or 
     reasonable settlement, financing, or other closing costs.
       ``(C) First-time homebuyer; other definitions.--For 
     purposes of this paragraph:
       ``(i) First-time homebuyer.--The term `first-time 
     homebuyer' means any individual if--

       ``(I) such individual (and if married, such individual's 
     spouse) had no present ownership interest in a principal 
     residence during the 2-year period ending on the date of 
     acquisition of the principal residence to which this 
     paragraph applies, and
       ``(II) subsection (a)(6), (h), or (k) of section 1034 did 
     not suspend the running of any period of time specified in 
     section 1034 with respect to such individual on the day 
     before the date the distribution is applied pursuant to 
     subparagraph (A)(ii).
       ``(ii) Principal residence.--The term `principal residence' 
     has the same meaning as when used in section 1034.
       ``(iii) Date of acquisition.--The term `date of 
     acquisition' means the date--

       ``(I) on which a binding contract to acquire the principal 
     residence to which subparagraph (A) applies is entered into, 
     or
       ``(II) on which construction or reconstruction of such a 
     principal residence is commenced.

       ``(D) Special rule where delay in acquisition.--If any 
     distribution from any individual retirement plan fails to 
     meet the requirements of subparagraph (A) solely by reason of 
     a delay or cancellation of the purchase or construction of 
     the residence, the amount of the distribution may be 
     contributed to an individual retirement plan as provided in 
     section 408(d)(3)(A)(i) (determined by substituting `120 
     days' for `60 days' in such section), except that--
       ``(i) section 408(d)(3)(B) shall not be applied to such 
     contribution, and
       ``(ii) such amount shall not be taken into account in 
     determining whether section 408(d)(3)(A)(i) applies to any 
     other amount.
       ``(7) Qualified higher education expenses.--For purposes of 
     paragraph (2)(D)(ii):
       ``(A) In general.--The term `qualified higher education 
     expenses' means tuition, fees, books, supplies, and equipment 
     required for the enrollment or attendance of--
       ``(i) the taxpayer,
       ``(ii) the taxpayer's spouse, or
       ``(iii) any child (as defined in section 151(c)(3)), 
     grandchild, or ancestor of the taxpayer or the taxpayer's 
     spouse,

     at an eligible educational institution (as defined in section 
     135(c)(3)).
       ``(B) Coordination with savings bond provisions.--The 
     amount of qualified higher education expenses for any taxable 
     year shall be reduced by any amount excludable from gross 
     income under section 135.''.
       (d) Penalty-Free Distributions for Certain Unemployed 
     Individuals.--Paragraph (2) of section 72(t) is amended by 
     adding at the end the following new subparagraph:
       ``(E) Distributions to unemployed individuals.--A 
     distribution from an individual retirement plan to an 
     individual after separation from employment, if--
       ``(i) such individual has received unemployment 
     compensation for 12 consecutive weeks under any Federal or 
     State unemployment compensation law by reason of such 
     separation, and
       ``(ii) such distributions are made during any taxable year 
     during which such unemployment compensation is paid or the 
     succeeding taxable year.

     To the extent provided in regulations, a self-employed 
     individual shall be treated as meeting the requirements of 
     clause (i) if, under Federal or State law, the individual 
     would have received unemployment compensation but for the 
     fact the individual was self-employed.''.
       (e) Conforming Amendments.--
       (1) Section 401(k)(2)(B)(i) is amended by striking ``or'' 
     at the end of subclause (III), by striking ``and'' at the end 
     of subclause (IV) and inserting ``or'', and by inserting 
     after subclause (IV) the following new subclause:

       ``(V) the date on which qualified first-time homebuyer 
     distributions (as defined in section 72(t)(6)) or 
     distributions for qualified higher education expenses (as 
     defined in section 72(t)(7)) are made, and''.

       (2) Section 403(b)(11) is amended by striking ``or'' at the 
     end of subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, or'', and by inserting 
     after subparagraph (B) the following new subparagraph:
       ``(C) for qualified first-time homebuyer distributions (as 
     defined in section 72(t)(6)) or for the payment of qualified 
     higher education expenses (as defined in section 
     72(t)(7)).''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to payments and distributions after the date of 
     the enactment of this Act.
           TITLE III--AID TO FAMILIES WITH DEPENDENT CHILDREN

     SEC. 301. DISREGARD OF INCOME AND RESOURCES DESIGNATED FOR 
                   EDUCATION, TRAINING, AND EMPLOYABILITY.

       (a) Disregard as Resource.--Section 402(a)(7)(B) of the 
     Social Security Act (42 U.S.C. 602(a)(7)(B)) is amended--
       (1) by striking ``or'' before ``(iv)'', and
       (2) by inserting ``, or (v) at the option of the State, in 
     the case of a family receiving aid under the State plan (and 
     a family not receiving such aid but which received such aid 
     in at least 1 of the preceding 4 months or became ineligible 
     for such aid during the preceding 12 months because of 
     excessive earnings), any amount not to exceed $8,000 in a 
     qualified asset account (as defined in section 406(i)) of 
     such family'' before ``; and''.
       (b) Disregard as Income.--
       (1) In general.--Section 402(a)(8)(A) of such Act (42 
     U.S.C. 602(a)(8)(A)) is amended--
       (A) by striking ``and'' at the end of clause (vii), and
       (B) by inserting after clause (viii) the following new 
     clause:
       ``(ix) shall disregard any interest or income earned on a 
     qualified asset account (as defined in section 406(i)); 
     and''.
       (2) Nonrecurring lump sum exempt from lump sum rule.--
     Section 402(a)(17) of such Act (42 U.S.C. 602(a)(17)) is 
     amended by adding at the end the following: ``; and that this 
     paragraph shall not apply to earned or unearned income 
     received in a month on a nonrecurring basis to the extent 
     that such income is placed in a qualified asset account (as 
     defined in section 406(i)) the total amount in which, after 
     such placement, does not exceed $8,000;''.
       (3) Treatment as income.--Section 402(a)(7) of such Act (42 
     U.S.C. 602(a)(7)) is amended--
       (A) by striking ``and'' at the end of subparagraph (B),
       (B) by striking the semicolon at the end of subparagraph 
     (C) and inserting ``; and'', and
       (C) by adding at the end the following new subparagraph:
       ``(D) shall treat as income any distributions from a 
     qualified asset account (as defined in section 406(i)(1)) 
     which do not meet the definition of a qualified distribution 
     under section 406(i)(2);''.
       (c) Qualified Asset Accounts.--Section 406 of such Act (42 
     U.S.C. 606) is amended by adding at the end the following:
       ``(i)(1) The term `qualified asset account' means a 
     mechanism approved by the State (such as individual 
     retirement accounts, escrow accounts, or savings bonds) that 
     allows savings of a family receiving aid to families with 
     dependent children to be used for qualified distributions.
       ``(2) The term `qualified distributions' means 
     distributions for expenses directly related to one or more of 
     the following purposes:
       ``(A) The attendance of a member of the family at any 
     education or training program.
       ``(B) The improvement of the employability (including self-
     employment) of a member of the family (such as through the 
     purchase of an automobile).
       ``(C) The purchase of a home for the family.
       ``(D) A change of the family residence.''.
       (d) Study of Use of Qualified Asset Accounts; Report.--The 
     Secretary of Health and Human Services shall conduct a study 
     of the use of qualified asset accounts established pursuant 
     to the amendments made by this section, and shall report on 
     such study and any recommendations for modifications of such 
     amendments to the Committee on Finance of the Senate and the 
     Committee on Ways and Means of the House of Representatives 
     not later than January 1, 1998.
       (e) Report on AFDC Asset Limit on Automobiles.--Within 3 
     months after the date of the enactment of this section, the 
     Secretary of Health and Human Services shall submit to the 
     Congress a report on--
       (1) the need to revise the limitation, established in 
     regulations pursuant to section 402(a)(7)(B)(i) of the Social 
     Security Act, on the value of a family automobile required to 
     be disregarded by a State in determining the eligibility of 
     the family for aid to families with dependent children under 
     the State plan approved under part A of title IV of such Act, 
     and
       (2) the extent to which such a revision would increase the 
     employability of recipients of such aid.
       (f)  Effective Date.--The amendments made by this section 
     shall take effect on October 1, 1995, with respect to 
     accounts approved on or after such date and before October 1, 
     1998.
                                                                    ____

              The Case for Individual Retirement Accounts:


                          The Need for Savings

       There is a growing consensus in Congress that demonstrates 
     Members agree Americans must save their money and become 
     self-reliant. The lack of savings in this country has reached 
     crisis proportions--THERE IS A SAVINGS CRISIS! The personal 
     saving rate in America has decreased steadily over the past 
     25 years, falling from 8 percent in the 1960's and 70's, to 
     less than 4 percent today. According to the Congressional 
     Budget Office, the national saving rate was only 1.7 percent 
     in 1993, down from 3 percent from 1981 to 1993. The Chairman 
     of the Federal Reserve, Alan Greenspan, has said that the 
     single most important long-term economic issue for this 
     country is that of national savings. There is a growing 
     consensus that it is the responsibility of Congress to help 
     Americans save, to empower our families toward self-reliance. 
     And I strongly believe that removing the savings penalties in 
     the tax code is the best way to increase this nation's 
     savings rate and self-reliance.
       We all know the statistics: the British and Germans save 
     twice as much, while the Japanese and French save at a rate 
     more than 
      [[Page S169]] three times that of Americans, largely--I 
     believe--because of their tax incentives. Consequently, Japan 
     has the highest personal saving rate among advanced nations, 
     and ample funds needed to finance capital investment in the 
     best and most productive equipment. Thus Japanese business 
     and workers have the most advanced tools available in the 
     global marketplace. Meanwhile, the U.S. government levies a 
     heavy tax burden on saving and capital. Though the American 
     economy has many strengths, our tax policy hampers our 
     ability to compete with the advantages offered by Japan. Our 
     punitive antisavings and anti-investment tax code is 
     crippling our competitiveness at a turning point in economic 
     history. We must remember that we cannot tax ourselves into 
     prosperity. By suppressing saving and capital investment now, 
     we are crippling our economy for the challenges of the 
     further.
       Increase savings will produce more high paying jobs, 
     increase productivity, stimulate economic growth and help 
     enable us to compete with our competitors abroad.


                          encouraging savings

       One of the most important questions is how to encourage 
     Americans to save more. That is why we have crafted this bill 
     to bring new savers into the act. We must recognize that 
     there are other important reasons for Americans to save long-
     term, besides the pressing economic needs of our country and 
     the need for retirement. For example, our young people today 
     have an almost impossible time scraping together a down-
     payment for their first home. Our families find it more and 
     more difficult to save for their children college education. 
     And, our older Americans worry about their security as 
     retirement approaches.
       Consequently, the best answer to meet our savings needs is 
     to allow Americans to save for what they need most. And that 
     is the approach that we have taken in drafting this 
     legislation. This legislation allows savers the chance to use 
     the IRA to help them pay for a college education, buy their 
     first home, pay for financially devastating health costs or 
     cover family costs during an extraordinary period of 
     unemployment. By allowing Americans the ability to withdrew 
     IRA savings--savings once reserved for retirement only--for 
     these four additional purposes, without a penalty for early 
     withdrawal, we have greatly enhanced the flexibility of the 
     IRA and strongly encouraged Americans to put more savings 
     away. One of the primary benefits of this new withdrawal 
     feature is that parents and grandparents would be allowed to 
     draw down their IRA without penalty to pay their children's 
     college education, or contribute toward their children's 
     first home. Increased savings is essential in order to allow 
     Americans to take greater control of their own economic 
     future.
       This is what ``personal responsibility'' is all about. The 
     individual should provide for his or her family, and should 
     not rely on the limited hand of government for their support. 
     This government can not continue the course it is on by 
     creating more and more programs to pay for every need, but it 
     can afford to encourage individuals to provide for 
     themselves.
       As 76 million baby boomers move toward middle-age, it is 
     essential that they purchase their own homes, be prepared to 
     pay for their children's college costs, as well provide for 
     their own retirement. A recent study has shown that baby 
     boomers are savings only one-third the amount that they need 
     for retirement. Another study has shown that American 
     families headed by individuals age 45 to 54 have median 
     financial assets of only $2,600. This is a course for 
     declining living standards, as well as economic insecurity. 
     The time to act is now!


                    increasing u.s. competitiveness

       I mentioned earlier that this new IRA offers a renewed 
     opportunity to increase America's competitiveness in the 
     emerging global economy. It's an opportunity born by the fact 
     that savings equal investment, investment equals jobs, and 
     jobs equal a strong, vibrant economy. It has been estimated 
     that after the first year this legislation is enacted, IRA 
     deposits will increase by as much as $40 billion. This 
     represents long-awaited capital that the U.S. needs for 
     investment, manufacturing, education, infrastructure and 
     other important goals. With a Japanese savings rate of about 
     three times the U.S. rate, and a cost of capital of about 
     one-fourth that of the U.S., it is no wonder that we are 
     lagging behind in the international race to compete in the 
     world.
       Added savings of $40 billion and more from increasing 
     annual IRA deposits is likely to be the best solution. And 
     don't forget the benefit to the already weakened financial 
     infrastructure in this country. The estimated additional 
     deposits in U.S. banks in the first year alone from this 
     legislation would be about $16 billion--money needed to 
     provide productive loans and investment in this country for 
     years to come. I believe the IRA will go a long way toward 
     helping our financial institutions provide the loans to 
     business that they must.
       Perhaps with the added savings from IRAs we can further our 
     own investment in the U.S. rather than U.S. investments by 
     others. In fact, in recent years, over half of net domestic 
     investment has been financed by capital from abroad. While 
     this foreign saving has contributed to U.S. economic growth 
     over the years, we are beginning to see why continued 
     reliance on these inflows is not a viable policy. Over long 
     periods, for advanced countries, the rate of domestic 
     investment tracks closely the supply of domestic saving. 
     Ultimately, the U.S. must move from a position of current 
     account deficit to surplus and capital outflow, as foreigners 
     receive the returns on their investment in the U.S. If that 
     is to happen without a relative reduction in U.S. living 
     standards, U.S. productive capacity must be increased and so 
     must U.S. savings.


                   The Most Important Reason to Save

       It's clear to see why this is a bill whose time has come, 
     however ... the most important reason to pass it is to meet 
     the needs of the most basic unit of our society. It's time we 
     get back to the family. Only by allowing American families 
     the opportunity--and even the right--to strengthen themselves 
     can we expect society to be strengthened as a whole. We've 
     tried to work around this elementary truth for years now--
     some thinking that government programs can replace the basic 
     family unit. Well, we've come full circle--back to the 
     understanding that it was family and community values that 
     built a strong America. The aging of our citizens brings an 
     ever-increasing urgency to the need to encourage national 
     savings. As the baby-boom bulge grows older and reaches 
     retirement, the family cost of long-term care and other 
     health costs as well as leisure activities during retirement 
     will grow dramatically. At the same time the size of the 
     working population will be declining. Our children cannot 
     continue to pay the cost of our retirement--the answer is to 
     begin planning now. Recent statistics show that the average 
     American family is ill-prepared for retirement. A new 
     analysis on the financial wealth of American families finds 
     that half of American families currently have below $1,000 in 
     net financial assets. In fact, the study found that families 
     headed by individuals under the age of 45 have median net 
     financial assets of just $700. Even those on the verge of 
     retirement, aged 55 to 64, have median financial assets of 
     only $6,880. Overall, the median level of net financial 
     assets for all U.S. families amounts to only about $1,000.
       A detailed study by two Princeton Economists, and released 
     by Merrill Lynch, shows that members of the Baby Boom 
     generation are saving at just one-third the rate needed to 
     provide them with a secure retirement at age 65. The Baby 
     Boom Index was determined to be 35.9 percent. This index 
     measures the rate at which the oldest Baby Boomers, those 
     born between 1946 and 1956, are accumulating the savings they 
     will need to retire at age 65, and maintain a standard of 
     living consistent with pre-retirement years. This study makes 
     it absolutely clear that unless the 76 million Baby Boomers 
     begin to save and invest at a far higher rate in the next few 
     years, they will face an insecure retirement, that could last 
     as long as the time they spent in the work force. This 
     generation of Baby boomers will begin to retire in just 18 
     short years! President Clinton, a Baby Boomer himself, should 
     be acutely aware of this problem, and I am pleased that he 
     has adopted our legislation as part of his budget proposal 
     this year.
       The fact is, this study understates the severity of the 
     Baby Boom savings shortfall! First, it assumes that all of a 
     household's financial assets will be available to help pay 
     for retirement, but in reality, these funds will be used for 
     other things, like a child's education or a parent's health 
     care. Secondly, Baby Boomers are expected to live longer in 
     retirement than earlier generations and, therefore, will need 
     more savings at the outset.


                                Summary

       So there are really two primary reasons to increase our 
     country's national savings rate. First, it will allow the 
     American Family to provide for themselves through their own 
     resources, and second, it will allow our children and our 
     children's children to become more productive because of 
     badly needed new capital. The national crisis we face because 
     of a decade of low savings rates will only grow worse if we 
     fail to act--particularly as foreign investors begin to 
     withdraw their funds for their own country's needs and as our 
     ever-increasing aging population continues. We must agree 
     that increasing our saving rate will lower interest rates, 
     cut the cost of capital, reduce our reliance on foreign 
     investment and improve our standard of living. Most 
     importantly, now is the time to act, before it is too late.
                       Description of Provisions


            make deductible iras available to all americans

       Under the bill, all Americans would be eligible for fully 
     deductible IRAs. Current law only allows those taxpayers who 
     are not covered by any other pension arrangement, and those 
     income does not exceed $40,000 ($25,000 singles) to be 
     eligible for a fully deductible IRA. These income limits 
     would be gradually lifted over time.
       The $2,000 contribution limit will be indexed for inflation 
     in $500 increments in the year in which the indexed amount 
     exceeds the next $500 increase.
       No longer will a spouse be ``deemed'' to have a pension 
     plan because their husband or wife has one. If the individual 
     does not have a pension plan at work, regardless of their 
     income level, they will qualify for an IRA to the extent of 
     their ``earned income.''
       The bill would allow all spouses who work at home--husbands 
     or wives--to have an equal stake by having their own IRA on 
     an equivalent basis. Thus, work at home 
      [[Page S170]] spouses would be allowed to contribute up to 
     $2,000 to their own IRA, thus increasing the current $250 
     limit to the same level as other workers.


                         new kind of ira option

       Taxpayers will be offered a new choice of IRA. Under this 
     new ``IRA Plus'' Account, contributions will not be 
     deductible, but if the assets remain in the account for at 
     least 5 years, all income will be tax free when it is 
     withdrawn. A 10 percent penalty will apply to early 
     withdrawals, unless they meet one of the four exceptions 
     below.
       Taxpayers can contribute up to $2,000 to either a 
     traditional IRA, or the new IRA. They can also allocate any 
     portion of the $2,000 limit to the different accounts (e.g. 
     $1,000 to a traditional IRA and $1,000 to the new IRA).


          penalty-free ira withdrawals for important purposes

       The 10 percent penalty on early withdrawals (those before 
     age 59\1/2\ or 5 years for the new IRA) will be waived if the 
     funds are used to buy a first home, to pay educational 
     expenses, to cover catastrophic health care costs or during 
     periods of unemployment after collecting 12 weeks or more of 
     unemployment compensation. Taxpayers will still be liable for 
     the income tax due on the withdrawal, but no penalty will 
     apply.
       Parents and grandparents can make penalty-free withdrawals 
     for college or home expenses of a child or grandchild. 
     Children and grandchildren can make penalty-free withdrawals 
     for health costs in excess of 7\1/2\ percent of the income of 
     their parents and grandparents. An individual wanting to go 
     back to school after being in the workforce could use the IRA 
     to save for anticipated education or retraining expenses. The 
     withdrawal rules apply across generations and between 
     spouses.


               penalty-free 401(k) and 403(b) withdrawals

       Similar penalty-free withdrawal rules will apply to 401(k) 
     and 403(b) employer sponsored plans for purposes of buying a 
     first home, education or unemployment costs. Penalty-free 
     withdrawals are already allowed for medical expenses for 
     these plans.
       Section 401(k) and 403(b) plans are employer-provided 
     retirement plans allowing employees to make pre-tax 
     contributions out of their paychecks. Currently, once an 
     employee makes a contribution to a 401(k) or 403(b) plan, 
     withdrawals are generally subject to a 10 percent penalty tax 
     like that applied to early withdrawals from IRAs.


               conversion of iras into ira plus accounts

       Taxpayers will be allowed to ``convert'' their old IRA 
     savings into IRA Plus Accounts without penalty. They must, 
     however, pay the ordinary income tax due on previously 
     deducted contributions, as well as any earnings transferred. 
     If the conversion is made before 1997, the taxpayer can 
     spread the tax payments out over a 4-year period.
                                 ______

      By Ms. MOSELEY-BRAUN:
  S. 13. A bill to require a Congressional Budget Office analysis of 
each bill or joint resolution reported in the Senate or House of 
Represenatives to determine the impact of any Federal mandates in the 
bill or joint resolution; to the Committee on the Budget and the 
committee on Governmental Affairs, jointly, pursuant to the order of 
August 4, 1977, that if one committee reports, the other committee has 
30 days to report or be discharged.


                  mandates cost disclosure legislation

 Ms. MOSELEY-BRAUN. Mr. President, 2 years ago, when I came to 
the Senate, I started asking Federal agencies for information about the 
cost of Federal mandates on State and local governments. The costs of 
Federal mandates was a significant issue when I served in State and 
local government in Illinois. State and local officials believe their 
budgets are unduly pressured because the Federal Government has pushed 
additional requirements on State and local governments, without the 
funding necessary to cover the additional costs.
  To my surprise, most of the Federal establishment appeared to be 
totally unaware of the impact that Federal mandates have on State and 
local governments. There was almost a total absence of information on 
the mandates issues, and much of the government did not even known what 
a mandate was.
  The first bill I introduced in the Senate in 1993 was designed to 
help ensure that this important issue was addressed. I am reintroducing 
this legislation today.
  My bill was the first piece of legislation introduced in the 103d 
Congress to address the issue of unfunded mandates. It tried to ensure 
that Federal officials would be informed of the cost impact, in 
addition to the benefit, of any mandates they vote to enact. I am also 
cosponsoring S. 1 because it incorporates this component of my bill, 
and I will work for its passage.
  Mr. President, this legislation does not prohibit the Federal 
Government for issuing new mandates, nor does it repeal any existing 
Federal mandates. Instead, it simply requires that the Senate have 
information on any mandates in proposed legislation before it when the 
legislation is considered by the full Senate.
  The legislation adds a section to committee reports on proposed 
bills. This new section, which would be prepared by the Congressional 
Budget Office, would include information on: No. 1, the cost to State 
and local governments of complying with any Federal mandates in the 
reported bill, and No. 2, the extent to which Federal funds, either 
contained in the bill or otherwise, cover the costs of complying with 
the mandates.
  In addition, the legislation requires the Congressional Budget Office 
to issue an annual report on the cumulative costs of complying with 
Federal mandates in all enacted bills, together with an analysis of the 
extent to which Federal funds cover the costs of complying with the 
mandates.
  For purposes of the CBO analysis, a Federal mandate is a provision in 
a reported or enacted bill that: requires the creation or expansion of 
a State and/or local service or activity; requires standards different 
from existing State and/or local law or practice in delivering a 
service or in conducting an activity; creates additional personnel or 
other administrative costs for State and/or local governments; or 
requires contracting procedures different from or in addition to those 
required under existing State and/or local law or practice.
  Senate reports already require a CBO analysis of the proposed 
reported bill's impact on the Federal budget. In addition, committee 
reports are required to contain information on the regulatory impact of 
proposed reported bills on businesses and individuals. This legislation 
fills in the remaining major gap--the impact of the legislation on 
State and local governments.
  I am well aware, Mr. President, of the budget pressures that have 
encouraged the Federal Government to add mandates on State and local 
governments, and I am not suggesting that every mandate is 
inappropriate. I do believe, however, that the Senate should know what 
it is doing, that it should know the impact a proposed bill has on 
State and local governments, so that Senators can cast informed votes.
  I think my colleagues will agree that the Senate should have 
information on the impact Federal mandates have on State and local 
governments, and that the time to have that information is before the 
Senate votes on bills on the floor. I urge the Senate to promptly enact 
this simple but necessary piece of legislation.
  Mr. President, I ask unanimous consent that a copy of the bill be 
included in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. AMENDMENT TO THE CONGRESSIONAL BUDGET ACT OF 1974.

       Section 202 of the Congressional Budget Act of 1974 is 
     amended by adding at the end thereof the following:
       ``(i) Federal Mandates.--
       ``(1) The Director shall analyze each bill or joint 
     resolution reported in the Senate or the House of 
     Representatives to determine--
       ``(A) the cost to State and local governments of complying 
     with any Federal mandates in the reported bill or joint 
     resolution; and
       ``(B) the extent to which Federal funds, either in the bill 
     or joint resolution, or otherwise, cover the costs of 
     complying with the mandates.
       ``(2) The Director shall annually determine the cumulative 
     costs of complying with Federal mandates in all bills or 
     joint resolutions enacted in the preceding year and the 
     extent to which Federal funds cover the costs of complying 
     with such mandates.
       ``(3) For purposes of this subsection, the term `Federal 
     mandate' means a provision that--
       ``(A) requires creation or expansion of a State or local 
     service or activity;
       ``(B) requires standards different from State or local law 
     or practice in delivering a service or in conducting an 
     activity;
       ``(C) creates additional personnel or other administrative 
     costs for State and local governments; or
       ``(D) requires contracting procedures different from or in 
     addition to those required under State or local law or 
     practice.''.

     SEC. 2. REPORT REQUIRED FOR SENATE CONSIDERATION.

       Paragraph 11 of rule XXVI of the Standing Rules of the 
     Senate is amended--
       [[Page S171]] (1) in subparagraph (c) by striking ``(a) and 
     (b)'' and inserting ``(a), (b), and (c)'';
       (2) by redesignating subparagraph (c) as subparagraph (d); 
     and
       (3) by inserting after subparagraph (b) the following:
       ``(c) Each such report shall also contain an evaluation by 
     the Congressional Budget Office of any Federal mandates in 
     the bill or joint resolution as required by section 202(i) of 
     the Congressional Budget Act of 1974.''.

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                                    Incomplete record of Senate proceedings.                                    
                  Today's Senate proceedings will be continued in the next issue of the Record.                 
                                                                                                                
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