[Congressional Record Volume 141, Number 40 (Friday, March 3, 1995)]
[House]
[Pages H2599-H2639]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                PRIVATE PROPERTY PROTECTION ACT OF 1995

  The SPEAKER pro tempore (Mr. Doolittle). Pursuant to House Resolution 
101 and rule XXIII, the Chair declares the House in the Committee of 
the Whole House on the State of the Union for the further consideration 
of the bill, H.R. 925.

                              {time}  1226


                     in the committee of the whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the State of the Union for the further consideration of 
the bill (H.R. 925) to compensate owners of private property for the 
effect of certain regulatory restrictions, with Mr. Shuster in the 
chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. When the Committee of the Whole rose earlier today, the 
amendment offered by the gentleman from Ohio [Mr. Traficant] to the 
amendment in the nature of a substitute offered by the gentleman from 
Florida [Mr. Canady], as amended, had been disposed of.
  Pursuant to the order of the House, further consideration of the bill 
for amendment will end at 12:54.


amendment offered by mr. watt of north carolina to the amendment in the 
   nature of a substitute offered by mr. canady of florida as amended

  Mr. WATT of North Carolina. Mr. Chairman, I offer an amendment to the 
amendment in the nature of a substitute, as amended.
  The Clerk read as follows:

       Amendment offered by Mr. Watt of North Carolina to the 
     amendment in the nature of a substitute offered by the 
     gentleman from Florida, Mr. Canady, as amended: Strike 
     section 6(f).

  The CHAIRMAN. The gentleman from North Carolina [Mr. Watt] is 
recognized for 5 minutes.
  Mr. WATT of North Carolina. Mr. Chairman, I yield myself such time as 
I may consume.
  Mr. Chairman, the effect of this amendment will become apparent very 
quickly. If we read the provisions of the fifth amendment, my 
colleagues here have spent a lot of time and rhetoric talking about the 
fifth amendment. The provision we are talking about in this particular 
bill says ``nor shall private property be taken for public use without 
just compensation.'' They have told us throughout this debate that the 
purpose of this bill is to assure that people who are deprived of their 
property receive just compensation. They have told us that a reduction 
in value of people's property is a taking, and therefore, they should 
be compensated for it under the fifth amendment.
  Mr. Chairman, I want to talk about this for a little bit, and find 
out from my colleagues whether we believe this right is a right that is 
a first-class right, or whether it is a right which is a second-class 
right that we have under the Constitution.
  Mr. Chairman, we started out with a bill that said ``If you have a 
diminution in the value of your property, a reduction in the value of 
your property as a result of any agency action, you would be 
compensated.'' We then spent hours debating whether to limit that bill 
to compensation for just two kinds of agency action, that agency action 
being for the Endangered Species Act 
[[Page H2600]] and for the Clean Water Act, disregarding all of the 
other agency actions that might have the impact of reducing the value 
of an individual's property.

                              {time}  1230

  We then spent hours more debating the issue of whether the reduction 
in value that would be required to trigger this amendment, or this 
bill, would be 10 percent reduction or whether it would be 30 percent 
reduction, or where we finally got to under the last amendment, the 20 
percent reduction.
  I am not interested in talking about a constitutional right that 
triggers only if it is 70 percent. We do not have any constitutional 
rights in our country that trigger at 70 percent, or 80 percent, or 
even 90 percent. We cannot put a value on our constitutional rights.
  Now we come to the amendment that I have offered, and I want to 
direct my colleagues' attention to the bill because in the first 
section of the bill, it says the Federal Government shall compensate on 
owner of property whose value has been diminished.
  Then we read on over to the fine print of the bill and we got to the 
source of payment and it says, ``Any payment made under this section to 
an owner and any judgment obtained by an owner in a civil action shall 
come out of the agency's budget'' and the agency, if it gets a judgment 
against it, must come back and seek appropriations.
  My question to my colleagues is, is this a constitutional right, or 
is it a second-class right?
  The gentleman from Louisiana [Mr. Tauzin] has been very articulate 
about the rights that we are talking about here. They are all 
constitutional rights. Do they apply only when the Clean Air Act steps 
on them or only when the Clean Water Act steps on them, or only when 
the Endangered Species Act?
  The CHAIRMAN. The time of the gentleman from North Carolina [Mr. 
Watt] has expired.
  (By unanimous consent, Mr. Watt of North Carolina was allowed to 
proceed for 2 additional minutes.)
  Mr. WATT of North Carolina. Or is this a real constitutional right 
that we are wiling to pay for as we pay for all other constitutional 
rights in this country?
  So when our constituents come and say, ``We can get recovery if our 
values are diminished,'' will we scratch our heads and say, ``Oh, well, 
if we appropriate the money, you will get a recovery''?
  If someone gets a judgment against the United States of America and 
the agency does not have the money, will we say to them, ``Oh, no, the 
agency is bankrupt now. You must wait until next year's 
appropriation''? That is what the bill says. ``It shall be the duty of 
the head of the agency to seek the appropriation of such funds for the 
next fiscal year.''
  I have never known anybody who got a judgment against the United 
States who we can put off until the next fiscal year and tell we are 
not going to pay that judgment until a year from now, or 2 years from 
now, or we may not pay it at all if they do not appropriate the funds.
  The question I ask my colleagues in this amendment is to abolish this 
provision that says you can get your money only from an agency. There 
is no agency. This is the U.S. Government.
  I call on my colleagues to make this a first-class constitutional 
right, not a second-class constitutional right.
  Mrs. CHENOWETH. Mr. Chairman, I move to strike the last word.
  Mr. Chairman, some things change in time and some things just do not 
change in time. I want to bring that into focus in my comments. Some 
things that do not change in time is the nature of government, the 
nature of a government that when it grows too large, then it begins to 
encroach on our constitutional rights and our ability to make a living 
off the land.
  I want to share with Members a little bit of history, and, that is, 
that about 125 years ago, the U.S. Army sent General Custer into the 
West to conquer the Sioux Nation. In doing so, what they did not 
realize is that the Sioux were very keen people in regard to the 
promises that the American Government had made them, promises that were 
broken, promises that were broken when the American Army went in and 
they wounded and sometimes killed women and children. It was a broken 
promise between the American Government and the Sioux Nation. And so 
the American Government sent General Custer out to the West to conquer 
the Sioux Nation, not realizing that the Sioux were people who did not 
take very kindly to broken promises.
  Of course, we know the history of what happened at Wounded Knee, and, 
that is, that when General Custer went in, a terrible battle ensured 
and there was a great slaughter and a great setback of the American 
Army at that time. But the Army retaliated and in conquering the West, 
went ahead and sent other troops out and they chased the Sioux Nation 
into Canada and finally captured and conquered them.
  Sitting Bull, a great medicine man from the Sioux Nation, was asked 
to stand in this gallery, in this place, nearly 125 years ago, and I am 
standing in the same place that Sitting Bull stood when he addressed a 
joint session of the House and the Senate.
  Yes, ladies and gentlemen, some things change but some things never 
do, because this is what Sitting Bull said when he stood exactly in 
this place. He said, ``The government has made us many promises, more 
than I can remember, and they never kept but one. They promised to take 
our land and they took it.''
  As a lady from Idaho, I can tell you I live with that every day, 
because more and more of our land is being taken. I appreciate the 
bill, H.R. 925. I think it is historic. It is part of living up to the 
Contract With America and beginning to reclaim our land.
  Mr. SCOTT. Mr. Chairman, I move to strike the requisite number of 
words.
  Mr. Chairman, I accept the idea that society ought to pay for 
societal policies. When the public wants a highway, it wants to enjoy 
the benefits of the highway, those who have to suffer by losing their 
land are compensated so that everyone else can enjoy the benefits of 
the public policy.
  If this bill is going to work, we have to acknowledge that no agency 
has in it the money for these reimbursements. When we again fund money 
for highway, we not only have money for the road itself but also in the 
appropriation enough money to fulfill expenses and condemnation as part 
of that budget.
  If this is going to be implemented, we have to have a budget from 
which these payments can be made. The Watt amendment, Mr. Chairman, 
provides that resource.
  Mr. Chairman, I would hope that this amendment would pass. Otherwise, 
the bill just cannot operate.
  I would ask, Mr. Chairman, the gentleman from North Carolina to 
respond, if he would, to the question of how the judgments would be 
enforced if his amendment is not passed.
  Mr. WATT of North Carolina. If the gentleman would yield, as I 
understand it, in every other situation where a judgment is obtained 
against Government agencies, it is the Federal Government that stands 
behind that judgment and the full faith and credit of the United States 
is at risk any time a judgment is entered.
  If this amendment is to have any meaningful effect, if this bill is 
to have any meaningful effect, and people who we have not guaranteed if 
this bill passes that they will be compensated will be subjected to the 
whims of the appropriation process or nonappropriation. It is like we 
have got these naughty Federal Government agencies over there that are 
somehow separate and part from the Federal Government, itself, and the 
laws that the Congress passes who are out there acting as renegades and 
we are looking for somebody to blame, and trying to tell our 
constituents that somehow we are compensating them and protecting them 
against these naughty Federal Government agencies and hiding our head 
when really the agencies and the rules that they are applying and 
promulgating that result in these reductions in value are pursuant to 
the laws we passed here in this body and this is all a charade designed 
to make it appear that it is not us that is causing the problem by 
passing the Endangered Species Act or the Clean Water Act, but it is 
some Federal Government agency over there that is separate from us over 
here in Congress and they 
[[Page H2601]] ought to go over there and get their judgment satisfied.
  What I want to make sure the public understands is that there is no 
Federal Government agency, and Congress, that this is one Federal 
Government. If the Federal Government agency does something wrong, it 
is being done pursuant to a law that we have passed and we cannot just 
pass the buck over there and leave the public out there saying they 
have a valuable constitutional right, yet they have no assured means of 
collecting the judgment that is at play.
  Mr. SCOTT. Mr. Chairman, I finally say that as we pass future laws, 
we could include in those appropriations the money for reimbursement 
under this law as well as for the promulgation of the policy just as we 
do with highways. I would hope that his amendment would pass so that we 
could implement the law as soon as possible and not have to get into 
the situations as the gentleman from North Carolina has indicated.
  I yield to the gentleman from North Carolina [Mr. Rose].
  Mr. ROSE. I thank the gentleman for yielding.
  I would like to say about my colleague from North Carolina's 
amendment, that without this amendment, this is an unworkable piece of 
legislation, assuming that you feel that it needs to be enacted. I 
intend to vote for the bill, but it will be a much better bill with 
your amendment in it. Without it, it is rather mean-spirited as you 
pointed out. With it in it, it is extremely focusing of the public's 
mind and the Government's mind that the whole Government, not just some 
particular agency, has got to pay for it. I encourage my colleagues to 
support the Watt amendment. It perfects this bill.
  Mr. FIELDS of Texas. Mr. Chairman, I move to strike the requisite 
number of words.
  Mr. Chairman, I have a different interpretation than my friend from 
North Carolina because what this amendment does is gut this 
legislation. It guts the private property rights of property owners 
which we are trying to protect because it takes out what is the real 
stick in this legislation. The real stick is if the Government comes in 
and takes your property because of an endangered species designation or 
a wetland declaration and you lose the beneficial use of your property 
as guaranteed by the Constitution, you are not going to be compensated 
by the Government.
  It is my hope that you do not see this used as an entitlement. This 
is intended to be used when property is lost, when the Government comes 
in and says there really is a need for this particular piece of 
property as a wetland, or there really is a particular need for this 
property because of an endangered species.
  When we passed the Endangered Species Act and when we passed Clean 
Water, it was never envisioned by this Congress that the basic water 
rights in the State of Texas would be abrogated because of a fountain 
darter.

                              {time}  1245

  It was never intended by this body when those two acts were passed 
that farmers and ranchers in the Texas hill country would lose the 
ability to control cedar on their property because of two birds. It was 
never intended when those acts were passed that a Golden Eagle's nest, 
and by the way, there never has been proof that there really was an 
eagle's nest in the example I cited, it was never intended that would 
stop the construction of a badly needed road in my congressional 
district.
  Another particular story, Marge and Roger Krueger spent $53,000 of 
their savings on a lot for their dream house in the Texas hill country. 
They and other owners have been barred from building their dream houses 
because the Golden Cheek Warbler was found in adjacent canyons. Surely 
that was not the intent when the Endangered Species Act was passed and 
I think our forefathers had great foresight in understanding that 
through the actions of Government, property could be taken, and that is 
why they made provision in the Constitution for payment when in fact 
those takings have taken place.
  So again I say to my friend from North Carolina I appreciate the 
sincerity with which he comes to the floor, but I have to say in all 
candor to my friend, this is a gutting amendment if you support the 
basic and fundamental private property rights guaranteed under the 
Constitution.
  Mr. WATT of North Carolina. Mr. Chairman, will the gentleman yield?
  Mr. FIELDS of Texas. I am glad to yield to the gentleman from North 
Carolina.
  Mr. WATT of North Carolina. I am concerned about Marge and Roger 
Krueger. The question I would ask the gentleman is if whatever agency 
that caused that adverse impact to Marge's land runs out of money, and 
they have gotten a judgment against the United States or against that 
agency, and the agency then comes back a year later and asks for an 
appropriation, what kind of protection has the gentleman provided in 
this bill for Marge Krueger?
  Mr. FIELDS of Texas. First you have the civil court, but then second 
let me say what this is designed to do.
  Mr. WATT of North Carolina. They have the judgment already.
  Mr. FIELDS of Texas. Reclaiming my time, what this stick of 
compensation is designed to do is to force the Federal Government in 
the first instance to make the right decision, to protect in this 
particular instance the warbler and the vireo. Other things could be 
done. You have State properties in this particular area where there was 
a concerted effort to save those birds. The fountain darter, there are 
things that could be done to propagate and actually increase the 
population and actually introduce this to the ecosystem of Texas. In 
regard to the eagle's nest I talked about just a minute ago, through 
cooperative effort people would bend over backwards in my area to 
protect if in fact that was an eagle's nest. But what has happened is 
we have lost the cooperation and the consultation with and of that 
local private landowner and that is what this legislation is designed 
to protect. This amendment guts it.
  Mr. TAUZIN. Mr. Chairman, will the gentleman yield?
  Mr. FIELDS of Texas. I am glad to yield to my friend from Louisiana.
  Mr. TAUZIN. Mr. Chairman, I thank the gentleman for yielding to make 
the point that it is the very language the gentleman's amendment would 
delete from the bill that provides the answer. It says that 
notwithstanding any other provision of law, payment must come from that 
agency. Therefore, the citizen can compel mandamus against that agency 
for payment.
  Mr. CANADY of Florida. Mr. Chairman, I move to strike the requisite 
number of words.
  Mr. Chairman, I just wanted to point out with respect to this 
amendment that it would eliminate the essential feature of this bill 
which provides an incentive for agencies to behave responsibly, for 
agencies to consider the real cost of their action, to take into 
account when they are imposing burdens on landowners, and I think for 
that reason this amendment would be counterproductive.
  I believe that in many of the instances where we are currently seeing 
landowners burdened, we are seeing agencies that are overreaching, they 
are going beyond the real intent of the law, and agencies who are doing 
that can exercise their discretion not to do that. And I believe that 
would be the consequence, the major consequence of passing this law.
  I want to also take this opportunity to thank all of those who have 
assisted and helped in the movement of this legislation. I want to 
particularly thank the gentleman from Texas [Mr. Smith], the gentleman 
from California [Mr. Pombo], and the gentleman from Alaska [Mr. Young], 
for their hard work in putting together the compromise, the substitute 
amendment which I have offered. Without their hard work on this issue 
we would not have been able to move this bill to the floor and I am 
very grateful to them for this.
  I also want to thank particularly the gentleman from Idaho [Mr. 
Crapo] for his hard work on this issue and his active participation in 
the floor debate. His very able participation here has been very 
important to the success of this bill.
  Finally, it is very important also to thank the gentleman from 
Louisiana [Mr. Tauzin] and the Members on the Democratic side who are 
participating in this effort. It is true that the gentleman from 
Louisiana [Mr. Tauzin] 
[[Page H2602]] has worked on this issue for years. I am very pleased 
that we are now seeing this issue brought to the floor, and I believe 
we are going to see this issue move forward to the Senate, and I am 
hopeful that we are going to see this issue passed into law later this 
year. So I am very grateful to them.
  Mr. POMBO. Mr. Chairman, will the gentleman yield?
  Mr. CANADY of Florida. Mr. Chairman, I yield to the gentleman from 
California.
  Mr. POMBO. Mr. Chairman, I thank the gentleman for yielding.
  Mr. Chairman, I think we all would like to thank the gentleman for 
the wonderful job he has done in managing this bill on the floor, and I 
appreciate all of the hard work you have put in in battling over the 
last 12 long hours.
  Mr. Chairman, I would like to rise in opposition to this amendment 
and to bring it into perspective in that if you take the incentive 
away, the hammer away from the agencies, you run into the situation 
that is the result of this bill coming to the floor, where an agency 
like the Fish and Wildlife Service can list the fairy shrimp and 
declare most of California habitat and control most of California 
without any cost to the agency, without any fear that anything is going 
to happen to them. They have run amok. It is the bureaucracy out of 
control, it is the bureaucracy and the regulators with a free hand 
running all over the Western United States and the Southern United 
States, without anyone having the ability to come down on them, unless 
of course you happen to have 10 years and a half million dollars to 
spend on attorneys' fees.
  That is what we are trying to correct in this bill. And I know what 
the gentleman's intentions are, but I feel that if this amendment were 
passed, it would completely damage the bill, so that we would not be 
able to accomplish what is truly needed, and that is to restore some 
responsibility to the agencies, and to put that hammer in the hands and 
I guess to restore the power to the people who are out there having to 
live under this.
  I think this is an extremely damaging amendment, and I would urge all 
of my colleagues to vote ``no'' on it.
  Mr. TAUZIN. Mr. Chairman, will the gentleman yield?
  Mr. CANADY of Florida. I yield to the gentleman from Louisiana.
  Mr. TAUZIN. Mr. Chairman, I will just take a minute and thank the 
gentleman for yielding. Let me concur in the last remarks. I do not 
want to use words like gutting and all of that, but this is extremely 
damaging. It takes from the bill the method of payment.
  Let me say to my friend who offered the amendment, this is a first 
class right under the Constitution. Any citizen under this bill that 
wants to exercise that right can do so at 1 percent, 2 percent, 10 
percent, 20 percent. This bill simply creates a new remedy for citizens 
at home under the criteria set by this bill to get justice at home. For 
it to work the agency has to want to cooperate, and if you do not make 
the agency responsible for damage it does, and do not make the agency 
responsible for payment, you will never get cooperation. Just day 
before yesterday Mr. Babbitt just announced the first of its kind safe 
harbor provision for the red cockaded woodpecker offering to cooperate 
with a landowner instead of taking their land.
  This is what we need.
  The CHAIRMAN. All time has expired.
  Under the previous order of the House of today, the question is on 
the amendment offered by the gentleman from North Carolina [Mr. Watt] 
to the amendment in the nature of a substitute offered by the gentleman 
from Florida [Mr. Canady], as amended.
  The question was taken; and the Chairman announced that the noes 
appeared to have it.


                             recorded vote

  Mr. WATT of North Carolina. Mr. Chairman, I demand a recorded vote.
  A recorded vote was ordered.
  The CHAIRMAN. Pursuant to clause 2 of rule XXIII, the Chair may 
reduce to not less than 5 minutes the time for any recorded vote that 
may be on another of the pending amendments without intervening 
business or debate.
  The vote was taken by electronic device, and there were--ayes 127, 
noes 299, not voting 8, as follows:
                             [Roll No. 196]

                               AYES--127

     Abercrombie
     Ackerman
     Becerra
     Beilenson
     Bentsen
     Berman
     Bishop
     Bonior
     Borski
     Boucher
     Brown (FL)
     Cardin
     Clay
     Clayton
     Clement
     Clyburn
     Coleman
     Collins (MI)
     Conyers
     Coyne
     DeFazio
     DeLauro
     Dellums
     Deutsch
     Dingell
     Dixon
     Doggett
     Engel
     Evans
     Farr
     Fattah
     Fazio
     Fields (LA)
     Filner
     Flake
     Foglietta
     Ford
     Frank (MA)
     Frost
     Furse
     Gejdenson
     Gephardt
     Gibbons
     Green
     Gutierrez
     Hastings (FL)
     Hefner
     Hilliard
     Hinchey
     Hoyer
     Jackson-Lee
     Jefferson
     Johnson, E. B.
     Johnston
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     LaFalce
     Lantos
     Lewis (GA)
     Lofgren
     Lowey
     Maloney
     Manton
     Markey
     Martinez
     Matsui
     McCarthy
     McDermott
     McKinney
     Meehan
     Meek
     Menendez
     Mfume
     Miller (CA)
     Mineta
     Mink
     Nadler
     Neal
     Oberstar
     Obey
     Olver
     Owens
     Pallone
     Pastor
     Payne (NJ)
     Pelosi
     Rahall
     Reed
     Reynolds
     Richardson
     Rivers
     Rose
     Roybal-Allard
     Rush
     Sabo
     Sanders
     Sawyer
     Schroeder
     Schumer
     Scott
     Serrano
     Skaggs
     Slaughter
     Stark
     Stokes
     Studds
     Thompson
     Torres
     Torricelli
     Towns
     Tucker
     Velazquez
     Vento
     Visclosky
     Ward
     Waters
     Watt (NC)
     Waxman
     Williams
     Wise
     Woolsey
     Wyden
     Wynn
     Yates

                               NOES--299

     Allard
     Andrews
     Archer
     Armey
     Bachus
     Baesler
     Baker (CA)
     Baker (LA)
     Baldacci
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Barrett (WI)
     Bartlett
     Barton
     Bass
     Bateman
     Bereuter
     Bevill
     Bilbray
     Bilirakis
     Bliley
     Blute
     Boehlert
     Boehner
     Bonilla
     Bono
     Brewster
     Browder
     Brown (OH)
     Brownback
     Bryant (TN)
     Bunn
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Castle
     Chabot
     Chambliss
     Chenoweth
     Christensen
     Chrysler
     Clinger
     Coble
     Coburn
     Collins (GA)
     Combest
     Condit
     Cooley
     Costello
     Cox
     Cramer
     Crane
     Crapo
     Cremeans
     Cubin
     Cunningham
     Danner
     Davis
     de la Garza
     Deal
     DeLay
     Diaz-Balart
     Dickey
     Dicks
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Durbin
     Edwards
     Ehlers
     Ehrlich
     Emerson
     English
     Ensign
     Eshoo
     Everett
     Ewing
     Fawell
     Fields (TX)
     Flanagan
     Foley
     Forbes
     Fowler
     Fox
     Franks (CT)
     Franks (NJ)
     Frelinghuysen
     Frisa
     Funderburk
     Gallegly
     Ganske
     Gekas
     Geren
     Gilchrest
     Gillmor
     Gilman
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Greenwood
     Gunderson
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hamilton
     Hancock
     Hansen
     Harman
     Hastert
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Heineman
     Herger
     Hilleary
     Hobson
     Hoekstra
     Hoke
     Holden
     Horn
     Hostettler
     Houghton
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jacobs
     Johnson (CT)
     Johnson (SD)
     Johnson, Sam
     Jones
     Kanjorski
     Kasich
     Kelly
     Kim
     King
     Kingston
     Kleczka
     Klink
     Klug
     Knollenberg
     Kolbe
     LaHood
     Largent
     Latham
     LaTourette
     Laughlin
     Lazio
     Leach
     Levin
     Lewis (CA)
     Lewis (KY)
     Lightfoot
     Lincoln
     Linder
     Lipinski
     Livingston
     LoBiondo
     Longley
     Lucas
     Luther
     Manzullo
     Martini
     Mascara
     McCollum
     McCrery
     McDade
     McHale
     McHugh
     McInnis
     McIntosh
     McKeon
     McNulty
     Metcalf
     Meyers
     Mica
     Miller (FL)
     Minge
     Molinari
     Mollohan
     Montgomery
     Moorhead
     Moran
     Morella
     Murtha
     Myers
     Myrick
     Nethercutt
     Neumann
     Ney
     Norwood
     Nussle
     Ortiz
     Orton
     Oxley
     Packard
     Parker
     Paxon
     Payne (VA)
     Peterson (FL)
     Peterson (MN)
     Petri
     Pickett
     Pombo
     Pomeroy
     Porter
     Portman
     Poshard
     Pryce
     Quillen
     Quinn
     Radanovich
     Ramstad
     Regula
     Riggs
     Roberts
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Roth
     Roukema
     Royce
     Salmon
     Sanford
     Saxton
     Scarborough
     Schaefer
     Schiff
     Seastrand
     Sensenbrenner
     Shadegg
     Shaw
     Shays
     Shuster
     Sisisky
     Skeen
     Skelton
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Solomon
     Souder
     Spence
     Spratt
     Stearns
     Stenholm
     Stockman
     Stump
     Stupak
     Talent
     Tanner
     Tate
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Tejeda
     Thomas
     Thornberry
     Thornton
     Thurman
     Tiahrt
     Torkildsen
     Traficant
     Upton
     Volkmer
     Vucanovich
     Waldholtz
     Walker
     Walsh
     Wamp
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wicker
     Wilson
     Wolf
     Young (AK)
     Young (FL)
     Zeliff
     Zimmer
                      [[Page H2603]] NOT VOTING--8

     Brown (CA)
     Bryant (TX)
     Chapman
     Collins (IL)
     Dornan
     Gonzalez
     Moakley
     Rangel

                              {time}  1312

  The Clerk announced the following pair:
  On this vote:

       Mr. Rangel for, with Mr. Dornan against.

  Mrs. THURMAN, Mr. LEVIN, and Mr. McHALE changed their vote from 
``aye'' to ``no.''
  Mr. FAZIO, Mr. OBEY, and Mrs. LOWEY changed their vote from ``no'' to 
``aye.''
  So the amendment to the amendment in the nature of a substitute, as 
amended, was rejected.
  The result of the vote was announced as above recorded.
  The CHAIRMAN. The question is on the amendment in the nature of a 
substitute, as amended, offered by the gentleman from Florida [Mr. 
Canady].
  The amendment in the nature of a substitute, as amended, was agreed 
to.
  The CHAIRMAN. The question is on the committee amendment in the 
nature of a substitute, as amended.
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  Mr. STUMP. Mr. Chairman, I rise in support of H.R. 925, the Private 
Property Protection Act of 1995 and I encourage my colleagues to 
support the bill as well.
  The bill is not an assault on the Constitution and it is not a scheme 
to benefit a select few as some propaganda has suggested. The bill 
simply affords Americans the protection that they have been guaranteed 
under the Constitution's fifth amendment. The bill is easily the most 
important measure to protect private property rights since the Bill of 
Rights was ratified in 1791.
  Tomorrow, March 4, 1995, marks the 206th year that the U.S. Congress 
has met. When the First Congress met, there was great concern that the 
Constitution did not include a basic Bill of Rights to limit the powers 
of the Federal Government. In their wisdom, the First Congress proposed 
a Bill of Rights and determined that the Bill of Rights should 
guarantee compensation for the taking of private property for public 
use.
  When the Bill of Rights was ratified in 1789, guarantee of 
compensation for the taking of private property became the fifth 
amendment to the Constitution.
  Since the Bill of Rights was ratified, the fifth amendment has been 
relied upon to limit Federal intrusion into private lives without due 
process of law. When we look back over the past 200 years, it is easy 
to see a clear pattern of increased takings of private property. The 
number of takings have rapidly escalated over the past two decades in 
direct relation to the increase in Federal regulatory actions. 
Unfortunately, private property owners who are victims of regulatory 
takings are not receiving due process guaranteed to them under the 
fifth amendment.
  The Federal regulatory morass has unfairly punished private property 
owners by restricting the use of their lands. While such Federal 
regulations clearly ``take'' from private property owners, tragically, 
the private property owner must sue to get compensation due to them by 
the Federal Government.
  We must not allow the Federal Government to continue to grow and 
regulate without regard for the public, of which private property 
owners are a part. We must not allow the Federal Government to take 
private lands for public purposes and then require the property owners 
to pay for costly, time consuming litigation in order to receive 
compensation.
  We must pass H.R. 925 and protect the constitutional guarantee of 
compensation for the taking of private lands.
  Mr. MINGE. Mr. Chairman, farmers and other landowners in the Second 
Congressional District are frustrated by a complex, burdensome, 
inefficient, and expensive set of procedures and restrictions dealing 
with wetlands and drainage. This has led to demands for compensation 
and reform of the process.
  I am drafting and will introduce legislation to dramatically simplify 
the procedures and reduce the harsh effects of these drainage and 
wetlands restrictions. The problem must be solved, and it must be 
solved now.
  The alternative approach set up in H.R. 925 of establishing a right 
to compensation for a loss of land value due to Federal restrictions is 
inviting but ill-advised. It will be a full employment act for 
attorneys and appraisers, potentially explosive liability, and an 
increase in the Federal debt. It is unworkable, unfair, and poorly 
thought out. For example, owners of areas with cattails that could be 
drained would be entitled to farmland value. Another example of the 
problem is how to handle parcels that are subject to, and then relieved 
of, restrictions. Should the land owner be obligated to refund the 
payment? Should the Federal Government have a lien on the land to 
receive the refund? Query, what is to be done about the situation where 
property both receives very substantial benefits from Federal activity 
that increases land value and then a more modest loss of value due to 
regulations?
  The real goal is to eliminate the unreasonable burdens. The promise 
of compensation, contained in H.R. 925 that was hastily considered by 
the House of Representatives, is an inadequate, elusive, and 
unacceptable solution. For these reasons, I voted against the bill. 
Hopefully, the idea of reasonable compensation for unreasonable 
restrictions in H.R. 935 will be improved in the U.S. Senate to deal 
with the problems I have identified. If it is, I look forward to voting 
for the measure.
  For the present, I look forward to working to lift the harsh burdens 
that are the real problem. Farmers in my area do not want a new and 
endless controversy. They want to farm. They are responsible stewards 
of the land.
  Mr. LIGHTFOOT. Mr. Chairman, on March 2, 1995, I voted ``aye'' on the 
Tauzin amendment to H.R. 925. However, the computer did not record my 
vote. I would like to declare my support for this amendment which would 
protect the rights of property owners from overzealous government 
takings. I reaffirmed my support for this legislation by voting in 
favor of final passage of H.R. 925.
  Mr. MFUME. Mr. Chairman, I rise in opposition to the H.R. 925, the 
Private Property Protection Act. The Private Property Protection Act 
comes under the guise of protecting private property rights, while in 
reality it pits the property rights of some against the rights of 
others and the rights of the community as a whole. Private property 
rights are sufficiently protected under the fifth amendment to the 
Constitution; codifying a specific interpretation of these rights is 
not only unnecessary, but dangerous as well. I urge a ``no'' vote on 
this legislation.
  The courts have outlined the factors to be considered on a case-by-
case basis in determining if a ``taking'' has occurred, including the 
economic impact on the property owner, the public purpose for which the 
regulation was adopted, and the character of the governmental action. 
H.R. 925 calls for an extended, legislated, interpretation of the fifth 
amendment of the Constitution. This bill would require the Federal 
Government to pay a private property owner for any decrease in value to 
his/her land due to Federal regulations. The effect of this legislation 
would be to have the Government--i.e. the taxpayers--pay land owners 
not to destroy the environment.
  Along with property rights come property responsibilities. Nobody has 
the right to use his or her property in a manner that may harm the 
public health or damage the property of another landowner or the 
community as a whole. American citizens are able to use environmental 
laws in order to protect their property from damage at the lands of 
irresponsible industries and landowners. Environmental laws, in turn, 
have been established to preserve our natural resources for the benefit 
of future generations and so that Mother Earth can survive.
  The intent of H.R. 925 is to make it fiscally impossible to enforce 
such important legislation as the Clean Water Act, the Endangered 
Species Act, and other environmental initiatives. A broader 
interpretation of this bill could limit the ability of the Federal 
Government to enforce such laws as the Americans with Disabilities Act, 
the Civil Rights Act, and other laws which protect American citizens 
but may place a financial burden on business. The possibilities of 
abuse under this legislation are enormous. We must not fall for the 
``what's mine, is mine'' pitch used by ``takings'' legislation 
advocates if it comes at the expense of the American taxpayer, or the 
community at large. I urge my colleagues to vote against H.R. 925.
  Mr. RADANOVICH. Mr. Chairman, bureaucracies have little respect for 
private property.
  In my district, for example, a constituent has been fighting an 
uphill battle with USDA's Forest Service over an easement right.
  Here is a letter from Jeffrey Green, county counsel of Mariposa 
County--my home community and on whose board of supervisors I formerly 
served. He explains the problem in a straightforward way that I believe 
my colleagues will find illuminating, and I ask that it be included 
with my remarks in the Record.
  I also want to point out that the problem discussed by Mr. Green has 
a further dimension that illustrates the indifference Federal 
bureaucrats can display. More than a year ago--January 10, 1994--the 
district ranger of Stanislaus National Forest wrote Mr. Green that the 
requested road use permit for my constituents would be ready within the 
next 30 days.
  When that didn't happen, Mr. Green made further inquiry. On May 17, 
1994, the district ranger wrote that he could ensure that the permit 
would be received shortly. Knowing I planned to use this awful apathy 
by the Forest Service in remarks on the House floor, my 
[[Page H2604]] counsel called the district ranger to ask whether the 
promised permit yet had issued. Sad to say, Mr. Chairman, the answer 
was ``no.''
  These are intolerable circumstances that, I am learning go on every 
day across our country. Citizens are at the mercy of a corps of 
overpaid, underworked dolts who make a mockery of the term, ``public 
service.''

                                           The County Counsel,

                               Mariposa County, CA, March 2, 1995.
     Re National Forest Service Use Permit for Billy J. Lovelace.
     Office of Congressman Radanovich,
     Cannon Building, Washington, DC:
       I have previously forwarded to your office my 
     correspondence relative to the above matter and the failure 
     of the Forest Service, after numerous promises, to issue a 
     Use Permit to Mr. Lovelace to access his property wherein he 
     resides. You have requested that I provide you additional 
     information as to why in my opinion this type of activity 
     illustrates the federal government's failure to respect 
     property rights of its citizens. Mr. Lovelace purchased his 
     property with the access road to his dwelling already 
     constructed. That access road did in fact cross a small 
     portion of the Forest Service property and an easement 
     existed for the use of that Forest Service strip of land. 
     When the easement expired, the Forest Service basically took 
     the position that Mr. Lovelace was going to have to find 
     other access to his property, although as a practical matter 
     no other access existed. Mr. Lovelace felt totally 
     ineffectual in dealing with the National Forest Service 
     personnel, as they made him feel that access to his property 
     would be granted upon their whim only and not as any property 
     right he may have acquired over a period of time. We all know 
     that you cannot acquire a prescriptive easement against a 
     governmental entity, however, there is a concept of fair play 
     and due process when the federal government has allowed 
     access over a period of years and then arbitrarily determined 
     that it may not continue that access to the property owner. 
     That is what happened in the Lovelace case and the possible 
     denial of the Use Permit has caused great emotional distress 
     to Mr. Lovelace. He feels totally helpless in dealing with 
     the federal government and therefore contacted his County 
     Supervisor, Doug Balmain, to intervene on his behalf. 
     Supervisor Balmain and myself did in fact intervene on Mr. 
     Lovelace's behalf and had a number of conversations with the 
     Forest Service personnel. Essentially the first meetings 
     indicated that the Forest Service was adopting a blanket 
     policy without any regard to the private
      property rights of the individuals in that it was 
     inappropriate to access private property over a Forest 
     Service land if there was any other conceivable way to 
     access the property. Of course, to the Forest Service, any 
     conceivable way to access the property did not take into 
     consideration the extreme expenses involved in most cases, 
     and the topography of the land which may make it 
     impossible to access. However, after a number of 
     conversations and written correspondence, the Forest 
     Service did in fact agree that Mr. Lovelace was entitled 
     to a Use Permit to access his property. As you know, that 
     permit has still not been issued even though it was 
     promised well over a year ago. Certainly when Mr. Lovelace 
     purchased his property, he felt he had a property right to 
     access his dwelling over the road that had been 
     constructed prior to his purchase. It was only after his 
     purchase that he discovered that the Forest Service may 
     restrict access to his property. In my opinion, as well as 
     Supervisor Balmain's opinion, the federal government has a 
     moral right and obligation to deal honestly and fairly 
     with citizens who are affected by its rules and 
     regulations. Access to an individual's dwelling is 
     certainly viewed by that individual as a property right 
     and the threat of removing that access generates a great 
     deal of distress for the property owner.
       Based upon other experiences with the Forest Service, this 
     is not an unusual way in which the Forest Service personnel 
     deals with citizens' property rights and values. In one of 
     the letters which my office received from the District Ranger 
     regarding this matter, the following language was contained 
     in the letter which, in effect, chastised Supervisor Balmain 
     and myself for becoming involved in this issue: ``Since the 
     issues revolve around the administration and management of 
     National Forest lands, all future correspondence will be 
     carried out through the concerned individuals.'' I read that 
     sentence to essentially tell Supervisor Balmain and myself to 
     butt out of Supervisor Balmain's constituent's business with 
     the federal government.
       Should you desire any additional information regarding this 
     matter, please feel free to contact me.
           Very truly yours,
                                                 Jeffrey G. Green,
                                                   County Counsel.

  Mr. COSTELLO. Mr. Chairman, I rise today to express my concern over 
legislation under consideration in the House today to place into 
statute guidance for takings allowance under the fifth amendment of the 
Constitution. While I support efforts to offer this guidance, I am 
concerned the original bill proposed by the majority goes too far.
  This bill would require Federal agencies to reimburse private 
property owners if 10 percent of their land is affected by any Federal 
regulation. While the intent of this bill is good, the potential cost 
to the Federal Government for a 10-percent diminishment of property 
value is enormous.
  In addition, the bill's basic provisions are unworkable. For 
instance, if the Federal Government raises the speed limit on a rural 
highway, property owners adjacent to the highway could claim their 
property has been devalued by at least 10 percent due to increased 
noise from greater automobile traffic or higher speed limits. They 
could then demand reimbursement from the Department of Transportation 
for that diminished land value.
  I have made efforts to work with my colleagues to try and raise this 
threshold to a more reasonable level. I have voted for amendments to 
raise this threshold beyond the 10-percent level, to one which builds 
on current legal precedent but which is not too narrow. In addition, I 
am working with my Democratic colleagues who also favor protecting 
private property rights to narrow the bill to instances of likely 
takings--for wetlands protections, for example--instead of every 
Federal regulation. Making Federal regulations more reasonable is my 
goal, which is also why I have cosponsored wetlands reform in the past.
  An effort was made to try and narrow this bill, but it did not go far 
enough. The amendment offered by Representative Tauzin would have gone 
beyond just a wetlands provision to include rights of western water 
use, mining and other use western lands. It also raised the threshold 
to only 50 percent, one which I feel is still too unworkable. That is 
why I opposed the Tauzin amendment.
  One amendment I did support would have required a private property 
impact assessment by an agency prior to any taking. This would have 
written into law an Executive order signed by President Ronald Reagan, 
that would allow property owners to seek compensation based on this 
assessment. Unfortunately, this amendment was rejected by a majority of 
my colleagues. However, this bill has improved as it has moved through 
the House, and it is my hope that in supporting this bill on final 
passage we may move it to the Senate and reach common ground to protect 
private property rights, and our Nation's critical environment areas, 
in a final package.
  Mr. McDERMOTT. Mr. Chairman, I rise in strong opposition to H.R. 925. 
This is yet another proposal offered by the new majority to undermine 
our Nation's health, safety, and environmental standards in order to 
benefit their favorite special interest: the pollution industry.
  This bill is a cruel joke which endangers helpless private property 
owners throughout the country and allows land abusers the opportunity 
to raid the Federal treasury.
  Make no mistake, this bill is incapable of protecting the public from 
health or safety hazards.
  In my State of Washington, clear cut logging on steep slopes caused 
extreme run-off and excessive flooding along the Tolt River. Slides 
sent trees and debris choking the river and deflecting flows.
  Meanwhile, the flooding caused a family's mobile home to be washed 
down river and significantly eroded several other properties. The 
effect: property devaluation and serious expense to the downstream 
landowners, serious harm to the environment, and huge profits for the 
loggers.
  This bill does nothing to either prevent such environmental damages 
or protect the landowners who undoubtedly will be harmed by the ensuing 
reckless developments.
  In fact, even as amended, H.R. 925 makes the government liable for 
the negligent actions of industry polluters, reckless developers, and 
the property owners whose land is harmed by such development.
  For example, when a developer seeks a permit to clear cut a steep 
slope as occurred in my State, or to fill in a wetland which endangers 
the property of downstream landowners, the government is damned if it 
grants the permit and damned if it doesn't.
  If the government issues the permit, it then becomes liable for the 
damages incurred by the developers on the downstream property owner's 
lands. Yet, if the government denies the permit, this bill forces it to 
compensate the developer who requested it--no matter how negligent the 
developer's proposal may be.
  By voting in favor of H.R. 925, the majority will commit our 
government to a financial conundrum which will drain the Federal 
treasury.
  There are not enough health, education, nutrition, or family programs 
for the new majority to eliminate in order to pay for a bill which 
mandates such financial recklessness.
  Mr. Chairman, I hope that you take a look beyond your political focus 
groups and examine the actual, real world implications of this 
dangerous bill.
  I hope my colleagues find the wisdom and courage to vote against this 
horrifying piece of legislation which, as usual in this new majority, 
benefits a select few and harms the rest of us.
  [[Page H2605]] Mr. UNDERWOOD. Mr. Chairman, the fifth amendment to 
the U.S. Constitution clearly speaks to the issue of Federal land 
acquisition when it states: ``[N]or shall private property be taken for 
public use, without just compensation.'' The Constitution is clear on 
the issue of Federal land takings and compels us to deal justly with 
the impact of Federal action on private land.
  H.R. 925 is currently being touted as the cure for private land 
owners whose land has been devalued by Federal regulations. However, it 
does not answer Guam's outrage over Federal land policies.
  The people of Guam have for many years been the victims of unjust 
land grabs and the heavy hand of Federal land policy. Within the 
borders of the war in the Pacific Park, land owners cannot develop 
their private property due to Federal regulations. Land owners at 
Ritidian Point, landlocked by the Andersen Air Force Base, are also 
denied free use of their land because access is restricted. 
Unfortunately, this legislation would not compensate these land owners 
or any others whose land is currently controlled by the Federal 
Government.
  Guam needs more than just promises for the future; we need Congress 
to recognize and commit itself to resolving Guam's unique Federal land 
problems.
  Mr. PETERSON of Minnesota. Mr. Chairman, today we are considering 
property rights legislation, one of the most important pieces of 
legislation we will vote on this year. The right to own property is one 
of the basic doctrines of our Constitution. The fifth amendment 
requires the Government to provide just compensation for property taken 
for public purposes. Property rights has come to the forefront of 
debate in rural America. This debate is vital to every landowner in 
this country, specially to the American farmer.
  Over the past three decades, there has been an enormous expansion in 
Government regulation of private property. The intent of these 
regulations is for the most part positive. However, the rigidity of the 
regulations is completely unnecessary and over burdensome and often 
defeats the purpose of the objective of the regulation. The Federal 
Government makes it a practice to spell out step by step the method 
each person should use to accomplish the goal of a regulation. This 
rigidity is costly and actually creates more obstacles.
  These regulation restrictions are out of control, specifically in 
regard to wetlands. For example, a farmer in my district bought 160 
acres of land with the intent to farm the 160 acres. After talking to 
his local soil and conservation service [SCS], and looking at the 
records from the sight, including soil samples and all inclusive maps, 
the SCS office confirmed that no wetlands were contained on the land. 
My constituent then proceeded to purchase the land and begin to make 
the necessary changes to farm. His local SCS came out again to approve 
the site, and on the way out noticed some cattails in the field. The 
SCS then proceeded to discover, new wetlands which affected about 26 
acres of land. This farmer would have reconsidered buying the property 
if he knew he could not farm on a large portion of his land.
  As a result of this type of common practice by Federal agencies, 
private property owners repeatedly lose economic use of their property. 
In situations where the Government regulates to the point that the 
property owner may not use his property, or the property is 
substantially devalued, it is only fair and just for the property owner 
to be compensated.
  No one argues that we need to regulate certain activities and 
restrict certain practices on land for the common good and well being 
of the country. We need clean water, we need clean air. And we need to 
protect the environment. However, the burden of providing public good 
should not be on an individual landowner. If the American public 
benefits from restrictions on land uses, then the public should pay for 
the costs.
  Furthermore, as recourse to Federal taking, wealthy people and big 
corporations have the resources to protect their property rights 
through the legal process. The average person on the other hand doesn't 
have the money and should not have to defend his or her property rights 
in the current lengthy, complicated and expensive legal process. More 
often than not, the small property owner has no way to combat the 
expansive authority and resources of Federal agencies. We must set up a 
process where people don't have to hire a lawyer, spend a lot of their 
own money, and waste millions of taxpayer dollars to defend their basic 
property rights.
  For these reasons, I strongly support H.R. 925, private property 
rights legislation. H.R. 925 ensures that private property owners are 
compensated when the use or value of their property is limited. This 
bill lays out clear and specific guidelines for government officials 
and property owners in determining when Federal regulations go too far, 
and result in violate individual property rights. Federal agencies will 
have to weigh their actions cautiously before issuing regulations and 
will be required to pay for the imposed regulations.
  People in this country who purchase and pay taxes on property should 
not have to endure their rights being stripped away. The Federal 
Government must be responsible for its actions. Congress must act now 
to minimize the taking of our constitutionally protected property 
rights. I urge my colleagues to support H.R. 925.
  Ms. PELOSI. Mr. Chairman, I rise today to oppose H.R. 925, the 
Private Property Protection Act of 1995. This legislation will create 
an entitlement program for polluters, a billion dollar sweepstakes for 
land speculators, and will leave the American taxpayer holding the bag.
  In the words of a Justice Department official who testified before 
the House Judiciary Committee, ``hard-working American taxpayers * * * 
will be forced to watch as their hard-earned wages are collected by the 
Government as taxes and paid out to corporations and large landowners 
as takings compensation.''
  At a time when so-called entitlement programs are under attack by the 
Republican Party, H.R. 925 would create an immense new entitlement 
program and bureaucracy with so much legal uncertainty that the only 
sure winners will be our Nation's lawyers.
  Mr. Chairman, contrary to what the authors of this legislation would 
have us believe, American law is based on a deep respect for private 
property rights. The fifth amendment itself symbolizes this respect for 
property rights by ensuring that private property shall not be taken 
for public use without just compensation.
  H.R. 925 represents a radical departure from long-settled Supreme 
Court doctrine. It abandons the modern definition of the fifth 
amendment's ``takings'' clause by requiring that private property 
owners be compensated if regulations limit land use and diminish 
property values by just 10 percent.
  This means that almost any loss in market value would require 
compensation. This replaces an entire body of constitutional law with a 
clumsy measure that ignores the collective wisdom of two centuries of 
Supreme Court decisions.
  Mr. Chairman, for over 200 years, private claims to compensation 
under the fifth amendment's ``takings'' clause have been successfully 
balanced against the public interest on a case-by-case basis.
  H.R. 925 does not add to this delicate judicial balance in a 
constructive manner. Rather, it shatters legal precedent by imposing a 
heavy-handed new doctrine that will only result in unjust windfalls to 
wealthy corporations at a tremendous cost to the health, safety and 
pocketbooks of all Americans.
  Who will pay for the costs of environmental clean-up when polluters 
degrade our environment? The American taxpayer. This bill protects the 
interests of polluters at the expense of the American taxpayer.
  Mr. Chairman, we should heed the voice of our constituents as we 
consider this bill. In a recent CNN/Time poll, people were asked 
whether a landowner that is barred from installing a toxic waste dump 
should be compensated. Fully two-thirds of those interviewed, 66 
percent, said no.
  Let's not allow the American taxpayer to get ``taken'' by this 
legislation. I urge my colleagues to vote against H.R. 925.
  Mr. JOHNSON of South Dakota. Mr. Chairman, once again the House 
Republican leadership has brought us a bill in H.R. 925, the Private 
Property Protection Act, which addresses a legitimately important 
issue, but which is overly broad, ill-considered and poorly drafted. I 
believe the debate on this important issue should continue, and so I 
will for now support this legislation in order for the Senate and the 
conference committees to have an opportunity to revise and improve the 
legislation. If no such significant improvement is forthcoming from 
those bodies, however, I am very doubtful that I will be able to vote 
for this bill on final passage.
  Mrs. COLLINS of Illinois. Mr. Chairman, I rise today in opposition to 
H.R. 925, the Private Property Protection Act. This bill establishes a 
dangerous and disturbing precedent that would allow individuals to do 
whatever they want with their property, regardless of whether it 
destroys their neighbors' property or not. Moreover, H.R. 925 would 
establish a new entitlement system to pay off these individuals to 
prevent them from using their property in a damaging way.
  Imagine if this radical and extreme interpretation of the U.S. 
Constitution's fifth amendment had been adopted by an earlier Congress. 
We would have no civil rights, no child labor laws, no environmental 
standards, no car safety standards, no clean water requirements, no 
Americans with Disabilities Act, etc. We would live in a dirty, unsafe, 
and callous environment in which each individual and corporation would 
be out for his or her own best interest, regardless of the consequences 
on 
[[Page H2606]] their neighbors and surroundings. The Government's 
efforts to protect public health and safety would be completely 
compromised because agencies would have to choose between promulgating 
the laws we pass and going bankrupt or ignoring important federal laws.
  Environmental justice efforts, and bills such as my Environmental 
Equal Rights Act would be completely undermined by H.R. 925 because 
environmentally disadvantaged communities would either have to allow a 
new waste facility site to be established or pay the polluter to not 
develop the site. This is dangerous, extreme and fundamentally unfair 
to the vast majority of Americans who own private property that is 
protected by our critical environmental, health, and public safety 
laws.
  In fact, I prepared an amendment to this legislation that would 
ensure that private property owners could not seek compensation if an 
agency prevented them from using their land in a way that would 
decrease the property value of their neighbor's land. Currently, the 
bill prevents someone from seeking compensation if the agency's action 
seeks to prevent damage to other properties. Damage implies specific, 
visible harm to neighboring property. For example, if water or waste 
was backing up in someone's backyard. What about the loss of property 
value when an enormous, ugly waste treatment site is constructed at the 
end of your block? This has occurred throughout my district and it 
seems unfair that property owners should have to choose between 
watching their property value decrease or paying their neighbor not to 
construct a waste facility. My concerns with this legislation are so 
great, however, that I intend to oppose H.R. 925 completely.
  What we have, Mr. Chairman, is a bad bill based on a bad idea. 
Members seem to be frustrated that Federal agencies are doing what they 
are required to do, which is to promulgate the laws that we pass. If 
this is the case, we should deal directly with this issue. But to pass 
a bill that makes taxpayers pay for our inaction is truly passing the 
buck. It is not only passing the buck but also endangering the future 
health and safety of the majority of our constituents. I urge my 
colleagues to join me in opposing this dangerous legislation.
  Mr. SMITH of Texas. Mr. Chairman, some opponents of the Private 
Property Protection Act of 1995 are engaged in world class doublespeak.
  Many of the same crowd that's run up a $4.5 trillion debt of our 
children's money criticize the Private Property Protection Act of 1995 
as a raid on the Treasury. Those who supported the largest tax hike in 
history worry that the bill will harm the middle class.
  Many of the same gang that supported a Governmental takeover of 
private health care in America condemn this bill as a new bureaucracy. 
Those who created cradle to grave entitlements attack this bill as a 
new entitlement. And the people who will oppose tort reform next week 
worried that this bill will be a boon for lawyers.
  It's amazing the creative excuses that defenders of big Government 
will resort to in order to protect their power to tell the American 
people what to do. But, Mr. Chairman, the American people, many of whom 
are watching this debate on C-SPAN today, know better.
  They know who is responsible for the deficit-raising, tax-elevating, 
mandate-creating, heavy-regulating, entitlement-formulating, lawsuit-
generating policies of the regulatory state. And the American people 
understand who will, and won't, end those policies.
  And if the opponents of the Private Property Protection Act of 1995 
would read our bill, they'd know that this bill does not create a new 
entitlement, does not create new bureaucracy, is not a boon for 
lawyers, is not a threat to the middle class, and does not eliminate 
our Nation's environmental laws.
  Read our bill. It simply makes the general public share the costs of 
regulations designed to benefit the general public. It prevents the 
Government from hiding those costs by foisting them on a single, 
innocent landowner.
  Read our bill. It doesn't prevent Government from protecting 
endangered species or preserving wetlands. We the people can protect as 
many endangered species and as many wetlands as we the people are 
willing to pay for.
  Read our bill. It doesn't create a new entitlement. Right now certain 
Americans who own the wrong land in the wrong place at the wrong time 
are forced to bear the entire cost of Government regulation. This bill 
simply relieves their burden brought on by the Government.
  Read our bill. This has nothing to do with a raid on the Treasury. 
This bill prevents the Government from stealing private property. It 
provides relief to the victims of regulatory theft. This relief would 
be made available from annual agency appropriations, not the U.S. 
Treasury.
  Read our bill. The Private Property Protection Act of 1995 would 
benefit the middle class. It would provide the people who do the work, 
pay the taxes, and pull the wagon with the same rights as the blind 
cave spider, golden cheeked warbler, and fairy shrimp. And it would 
make Government regulators public servants once again. No longer would 
these officials be the masters of middle class Americans.
  Mr. Chairman, objections to this bill have nothing to do with 
entitlements, bureaucracy, middle-class rights, or lawyers. They don't 
object to any of these things; they've spent their careers working hard 
to expand each of them.
  They have everything to do with their love of big Government control 
of the lives of middle class Americans. They'll say anything to defend 
it; they'll even talk in double-speak.
  Mr. Chairman, this Congress was elected to end big Government and 
prevent it from trampling the rights of the American middle class. 
That's why we rise today, Republican and Democrat, from all over this 
Nation, to support the Private Property Protection Act of 1995. I urge 
my colleagues to read this bill and when they do they'll support it.
  Mr. PACKARD. Mr. Chairman, Government imposed regulations chip away 
at the very cornerstone of our society--private property. It is time to 
stop Government's encroachment on our fifth amendment rights. 
Overzealous Federal regulations intrude on property owner rights and 
restrict individual freedom. Government exists to protect and serve the 
needs of private property owners, not to trespass on them.
  H.R. 925, the Private Property Protection Act works to restore the 
sanctity of private property by ensuring fair compensation for unfair 
Federal takings. Our Republican property rights proposal represents a 
simple but constitutionally protected concept. Whether the Government 
wants your property to build a road or to preserve an endangered rat's 
habitat, the intent of our Founding Fathers is clear. If you take it, 
pay for it. H.R. 925 provides landowners with their first line of 
defense against overreaching Government regulations.
  Our Nation's greatness arises in large part from the opportunities 
afforded by the use and ownership of private property. The restrictions 
imposed by overzealous regulatory agencies and legislatures limits the 
ability of property owners to manage and use their land. Bureaucrats 
abrogating our property rights and abusing the fifth amendment, assault 
the very fabric of our society.
  Mr. Chairman, Government should be encouraging, not discouraging 
ownership of private property. Fair compensation for unfair Federal 
land taking will restore Government accountability and legitimacy. The 
people want Government to stop meddling in their private affairs. H.R. 
925, the Private Property Protection Act, gets Government off of the 
people's back.
  The CHAIRMAN. Under the rule, the Committee rises.
  Accordingly the Committee rose; and the Speaker pro tempore (Mr. 
Hansen) having assumed the chair, Mr. Shuster, Chairman of the 
Committee of the Whole House on the State of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 925) to 
compensate owners of private property for the effect of certain 
regulatory restrictions, pursuant to House Resolution 101, he reported 
the bill back to the House with an amendment adopted by the Committee 
of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment to the committee 
amendment in the nature of a substitute adopted by the Committee of the 
Whole?
  If not, the question is on the amendment.
  The amendment was agreed to.

                              {time}  1315

  The SPEAKER pro tempore (Mr. Hansen). The question is on the 
engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. CANADY of Florida. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The vote was taken by electronic device, and there were--yeas 277, 
nays 148, not voting 9, as follows:
                             [Roll No. 197]

                               YEAS--277

     Allard
     Archer
     Armey
     Bachus
     Baesler
     Baker (CA)
     [[Page H2607]] Baker (LA)
     Baldacci
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Bentsen
     Bereuter
     Bevill
     Bilbray
     Bilirakis
     Bishop
     Bliley
     Boehner
     Bonilla
     Bono
     Brewster
     Browder
     Brown (OH)
     Brownback
     Bryant (TN)
     Bunn
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Chabot
     Chambliss
     Chapman
     Chenoweth
     Christensen
     Chrysler
     Clinger
     Coble
     Coburn
     Collins (GA)
     Combest
     Condit
     Cooley
     Costello
     Cox
     Cramer
     Crane
     Crapo
     Cremeans
     Cubin
     Cunningham
     Danner
     Davis
     de la Garza
     Deal
     DeLay
     Diaz-Balart
     Dickey
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Durbin
     Edwards
     Ehrlich
     Emerson
     English
     Ensign
     Everett
     Ewing
     Fawell
     Fazio
     Fields (TX)
     Flanagan
     Foley
     Forbes
     Fowler
     Fox
     Franks (CT)
     Frisa
     Frost
     Funderburk
     Gallegly
     Ganske
     Gekas
     Geren
     Gillmor
     Gilman
     Goodlatte
     Goodling
     Gordon
     Graham
     Green
     Gunderson
     Gutknecht
     Hall (OH)
     Hall (TX)
     Hamilton
     Hancock
     Hansen
     Harman
     Hastert
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hefner
     Heineman
     Herger
     Hilleary
     Hilliard
     Hobson
     Hoekstra
     Hoke
     Holden
     Horn
     Hostettler
     Houghton
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jacobs
     Johnson (SD)
     Johnson, Sam
     Jones
     Kasich
     Kelly
     Kim
     King
     Kingston
     Knollenberg
     Kolbe
     LaHood
     Lantos
     Largent
     Latham
     LaTourette
     Laughlin
     Leach
     Lewis (CA)
     Lewis (KY)
     Lightfoot
     Lincoln
     Linder
     Livingston
     LoBiondo
     Longley
     Lucas
     Manzullo
     Martinez
     Mascara
     McCollum
     McCrery
     McDade
     McHale
     McHugh
     McInnis
     McIntosh
     McKeon
     McNulty
     Metcalf
     Meyers
     Mica
     Molinari
     Mollohan
     Montgomery
     Moorhead
     Myers
     Myrick
     Nethercutt
     Neumann
     Ney
     Norwood
     Nussle
     Obey
     Ortiz
     Orton
     Oxley
     Packard
     Parker
     Paxon
     Payne (VA)
     Peterson (FL)
     Peterson (MN)
     Petri
     Pickett
     Pombo
     Pomeroy
     Portman
     Poshard
     Pryce
     Quillen
     Radanovich
     Regula
     Reynolds
     Riggs
     Roberts
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Rose
     Roth
     Royce
     Salmon
     Sanford
     Saxton
     Scarborough
     Schaefer
     Scott
     Seastrand
     Sensenbrenner
     Shadegg
     Shaw
     Shuster
     Sisisky
     Skeen
     Skelton
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Solomon
     Souder
     Spence
     Spratt
     Stearns
     Stenholm
     Stockman
     Stump
     Stupak
     Talent
     Tanner
     Tate
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Tejeda
     Thomas
     Thornberry
     Thornton
     Thurman
     Tiahrt
     Traficant
     Upton
     Volkmer
     Vucanovich
     Waldholtz
     Walker
     Walsh
     Wamp
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wicker
     Wilson
     Wolf
     Young (AK)
     Young (FL)
     Zeliff

                               NAYS--148

     Abercrombie
     Ackerman
     Andrews
     Barrett (WI)
     Becerra
     Beilenson
     Berman
     Blute
     Boehlert
     Bonior
     Borski
     Boucher
     Brown (FL)
     Cardin
     Castle
     Clay
     Clayton
     Clement
     Clyburn
     Coleman
     Collins (MI)
     Conyers
     Coyne
     DeFazio
     DeLauro
     Dellums
     Deutsch
     Dicks
     Dingell
     Dixon
     Doggett
     Ehlers
     Engel
     Eshoo
     Evans
     Farr
     Fattah
     Fields (LA)
     Filner
     Flake
     Foglietta
     Ford
     Frank (MA)
     Franks (NJ)
     Frelinghuysen
     Furse
     Gejdenson
     Gephardt
     Gibbons
     Gilchrest
     Goss
     Greenwood
     Gutierrez
     Hastings (FL)
     Hinchey
     Hoyer
     Jackson-Lee
     Jefferson
     Johnson (CT)
     Johnson, E.B.
     Kanjorski
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kleczka
     Klink
     Klug
     LaFalce
     Lazio
     Levin
     Lewis (GA)
     Lipinski
     Lofgren
     Lowey
     Luther
     Maloney
     Manton
     Markey
     Martini
     Matsui
     McCarthy
     McDermott
     Meehan
     Meek
     Menendez
     Mfume
     Miller (CA)
     Miller (FL)
     Mineta
     Minge
     Mink
     Moran
     Morella
     Murtha
     Nadler
     Neal
     Oberstar
     Olver
     Owens
     Pallone
     Pastor
     Payne (NJ)
     Pelosi
     Porter
     Quinn
     Rahall
     Ramstad
     Reed
     Richardson
     Rivers
     Roukema
     Roybal-Allard
     Rush
     Sabo
     Sanders
     Sawyer
     Schiff
     Schroeder
     Schumer
     Serrano
     Shays
     Skaggs
     Slaughter
     Stark
     Stokes
     Studds
     Thompson
     Torkildsen
     Torres
     Torricelli
     Towns
     Tucker
     Velazquez
     Vento
     Visclosky
     Ward
     Waters
     Watt (NC)
     Waxman
     Williams
     Wise
     Woolsey
     Wyden
     Wynn
     Yates
     Zimmer

                             NOT VOTING--9

     Brown (CA)
     Bryant (TX)
     Collins (IL)
     Dornan
     Gonzalez
     Johnston
     McKinney
     Moakley
     Rangel

                              {time}  1331

  The Clerk announced the following pair:
  On this vote:

       Mr. Dornan for, with Mrs. Collins of Illinois against.

  Mr. ACKERMAN changed his vote from ``yea'' to ``nay.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
authorizing the clerk to make technical and conforming changes in H.R. 
              925, private property protection act of 1995

  Mr. CANADY of Florida. Mr. Speaker, I ask unanimous consent that in 
the engrossment of the bill H.R. 925, as amended, the Clerk be 
authorized to correct section numbers, cross-references, and 
punctuation, and to make such stylistic, clerical, technical, 
conforming, and other changes as may be necessary to reflect the action 
of the House in amending the bill.
  The SPEAKER pro tempore (Mr. Hansen). Is there objection to the 
request of the gentleman from Florida?
  There was no objection.


                             general leave

  Mr. CANADY of Florida. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on H.R. 925, the bill just passed.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.


             job creation and wage enhancement act of 1995

  Mr. DeLAY. Pursuant to section 2 of House Resolution 101, I call up 
the bill (H.R. 9) to create jobs, enhance wages, strengthen property 
rights, maintain certain economic liberties, decentralize and reduce 
the power of the Federal Government with respect to the States, 
localities, and citizens of the United States, and to increase the 
accountability of Federal officials, and ask for its immediate 
consideration in the House.
  The Clerk read the title of the bill.
  The text of H.R. 9 is as follows:
                                 H.R. 9

       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 ``Job Creation and Wage 
     Enhancement Act of 1995''.
     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                     TITLE I--CAPITAL GAINS REFORM

Sec. 1001. 50 percent capital gains deduction.
Sec. 1002. Indexing of certain assets for purposes of determining gain 
              or loss.
Sec. 1003. Capital loss deduction allowed with respect to sale or 
              exchange of principal residence.

                    TITLE II--NEUTRAL COST RECOVERY

Sec. 2001. Depreciation adjustment for certain property placed in 
              service after December 31, 1994.

     TITLE III--RISK ASSESSMENT AND COST/BENEFIT ANALYSIS FOR NEW 
                              REGULATIONS

Sec. 3001. Findings

             Subtitle A--Risk Assessment and Communication

Sec. 3101. Short title.
Sec. 3102. Purposes.
Sec. 3103. Effective date; applicability; savings provisions.
Sec. 3104. Principles for risk assessment.
Sec. 3105. Principles for risk characterization and communication.
Sec. 3106. Guidelines, plan for assessing new information, and report.
Sec. 3107. Definitions.

       Subtitle B--Analysis of Risk Reduction Benefits and Costs

Sec. 3201. Analysis of risk reduction benefits and costs.

                        Subtitle C--Peer Review

Sec. 3301. Peer review program.

   TITLE IV--ESTABLISHMENT OF FEDERAL REGULATORY BUDGET COST CONTROL

Sec. 4001. Amendments to the Congressional Budget Act of 1974.
Sec. 4002. President's annual budget submissions.
Sec. 4003. Estimation and disclosure of costs of Federal regulation.

           TITLE V--STRENGTHENING OF PAPERWORK REDUCTION ACT

Sec. 5001. Short title.

              Subtitle A--Authorization of Appropriations

Sec. 5101. Authorization of appropriations.
[[Page H2608]] Subtitle B--Reducing the Burden of Federal Paperwork on 
                               the Public

Sec. 5201. Coverage of all federally sponsored paperwork burdens.
Sec. 5202. Paperwork reduction goals.

Subtitle C--Enhancing Government Responsibility and Accountability for 
                Reducing the Burden of Federal Paperwork

Sec. 5301. Reemphasizing the responsibility of the Director to control 
              the burden of Federal paperwork.
Sec. 5302. Enhancing agency responsibility to obtain public review of 
              proposed paperwork burdens.
Sec. 5303. Expediting review at the Office of Management and Budget.
Sec. 5304. Improving public and agency scrutiny of paperwork burdens 
              proposed for renewal.
Sec. 5305. Protection for whistleblowers of unauthorized paperwork 
              burden.
Sec. 5306. Enhancing public participation.
Sec. 5307. Expediting review of an agency information collection 
              request with a reduced burden.

      Subtitle D--Enhancing Agency Responsibility for Sharing and 
                    Disseminating Public Information

Sec. 5401. Prescribing governmentwide standards for sharing and 
              disseminating public information.
Sec. 5402. Agency responsibilities for sharing and disseminating public 
              information.
Sec. 5403. Agency information inventory/locator system.

Subtitle E--Additional Government Information Management Responsibility

Sec. 5501. Strengthening the statistical policy and coordination 
              functions of the Director.
Sec. 5502. Use of electronic information collection and dissemination 
              techniques to reduce burden.
Sec. 5503. Agency implementation.
Sec. 5504. Automatic data processing equipment plan.
Sec. 5505. Technical and conforming amendments.

                      Subtitle F--Effective Dates

Sec. 5601. Effective dates.

             TITLE VI--STRENGTHENING REGULATORY FLEXIBILITY

Sec. 6001. Judicial review.
Sec. 6002. Consideration of direct and indirect effects of rules.
Sec. 6003. Rules opposed by SBA Chief Counsel for Advocacy.
Sec. 6004. Sense of Congress regarding SBA Chief Counsel for Advocacy.

                 TITLE VII--REGULATORY IMPACT ANALYSES

Sec. 7001. Short title.
Sec. 7002. Rule making notices for major rules.
Sec. 7003. Hearing requirement for proposed rules; extension of comment 
              period.
Sec. 7004. Regulatory impact analysis.
Sec. 7005. Additional responsibilities of Director of the Office of 
              Management and Budget.
Sec. 7006. Standard of clarity.
Sec. 7007. Report by OIRA.
Sec. 7008. Definitions.

        TITLE VIII--PROTECTION AGAINST FEDERAL REGULATORY ABUSE

            Subtitle A--Citizens' Regulatory Bill of Rights

Sec. 8101. Citizens' regulatory bill of rights.

         Subtitle B--Private Sector Whistleblowers' Protection

Sec. 8201. Short title.
Sec. 8202. Purpose.
Sec. 8203. Coverage.
Sec. 8204. Prohibited regulatory practices.
Sec. 8205. Prohibited regulatory practice as a defense to agency 
              action.
Sec. 8206. Enforcement.
Sec. 8207. Citizen suits.
Sec. 8208. Office of the Special Counsel.
Sec. 8209. Relation to criminal investigations.

     TITLE IX--PRIVATE PROPERTY RIGHTS PROTECTIONS AND COMPENSATION

Sec. 9001. Statement of purpose.
Sec. 9002. Compensation for Federal agency infringement or deprivation 
              of rights to private property.
Sec. 9003. Severability.
Sec. 9004. Definitions.

     TITLE X--ESTABLISHMENT OF FEDERAL MANDATE BUDGET COST CONTROL

Sec. 10001. Amendments to the Congressional Budget Act of 1974.
Sec. 10002. President's annual budget submissions.
Sec. 10003. Estimation and disclosure of costs of Federal mandates.

                    TITLE XI--TAXPAYER DEBT BUY-DOWN

Sec. 11001. Designation of amounts for reduction of public debt.
Sec. 11002. Public Debt Reduction Trust Fund.
Sec. 11003. Taxpayer-generated sequestration of Federal spending to 
              reduce the public debt.

                  TITLE XII--SMALL BUSINESS INCENTIVES

Sec. 12001. Increase in unified estate and gift tax credits.
Sec. 12002. Increase in expense treatment for small businesses.
Sec. 12003. Clarification of definition of principal place of business.
Sec. 12004. Treatment of storage of product samples.
                     TITLE I--CAPITAL GAINS REFORM

     SEC. 1001. 50 PERCENT CAPITAL GAINS DEDUCTION.

       (a) General Rule.--Part I of subchapter P of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to treatment of 
     capital gains) is amended to read as follows:

                  ``PART I--TREATMENT OF CAPITAL GAINS
``Sec. 1201. Capital gains deduction.
     ``SEC. 1201. CAPITAL GAINS DEDUCTION.

       ``(a) General Rule.--If for any taxable year a taxpayer has 
     a net capital gain, 50 percent of such gain shall be a 
     deduction from gross income.
       ``(b) Estates and Trusts.--In the case of an estate or 
     trust, the deduction shall be computed by excluding the 
     portion (if any) of the gains for the taxable year from sales 
     or exchanges of capital assets which, under sections 652 and 
     662 (relating to inclusions of amounts in gross income of 
     beneficiaries of trusts), is includible by the income 
     beneficiaries as gain derived from the sale or exchange of 
     capital assets.
       ``(c) Coordination With Treatment of Capital Gain Under 
     Limitation on Investment Interest.--For purposes of this 
     section, the net capital gain for any taxable year shall be 
     reduced (but not below zero) by the amount which the taxpayer 
     takes into account as investment income under section 
     163(d)(4)(B)(iii).
       ``(d) Transitional Rule.--
       ``(1) In general.--In the case of a taxable year which 
     includes January 1, 1995--
       ``(A) the amount taken into account as the net capital gain 
     under subsection (a) shall not exceed the net capital gain 
     determined by only taking into account gains and losses 
     properly taken into account for the portion of the taxable 
     year on or after January 1, 1995, and
       ``(B) if the net capital gain for such year exceeds the 
     amount taken into account under subsection (a), the rate of 
     tax imposed by section 1 on such excess shall not exceed 28 
     percent.
       ``(2) Special rules for pass-thru entities.--
       ``(A) In general.--In applying paragraph (1) with respect 
     to any pass-thru entity, the determination of when gains and 
     losses are properly taken into account shall be made at the 
     entity level.
       ``(B) Pass-thru entity defined.--For purposes of 
     subparagraph (A), the term `pass-thru entity' means--
       ``(i) a regulated investment company,
       ``(ii) a real estate investment trust,
       ``(iii) an S corporation,
       ``(iv) a partnership,
       ``(v) an estate or trust, and
       ``(vi) a common trust fund.''
       (b) Deduction Allowable in Computing Adjusted Gross 
     Income.--Subsection (a) of section 62 of such Code is amended 
     by inserting after paragraph (15) the following new 
     paragraph:
       ``(16) Long-term capital gains.--The deduction allowed by 
     section 1201.''
       (c) Technical and Conforming Changes.--
       (1) Section 13113 of the Revenue Reconciliation Act of 1993 
     (relating to 50-percent exclusion for gain from certain small 
     business stock), and the amendments made by such section, are 
     hereby repealed; and the Internal Revenue Code of 1986 shall 
     be applied as if such section (and amendments) had never been 
     enacted.
       (2) Section 1 of such Code is amended by striking 
     subsection (h).
       (3) Paragraph (1) of section 170(e) of such Code is amended 
     by striking ``the amount of gain'' in the material following 
     subparagraph (B)(ii) and inserting ``50 percent of the amount 
     of gain''.
       (4)(A) Paragraph (2) of section 172(d) of such Code is 
     amended to read as follows:
       ``(2) Capital gains and losses.--
       ``(A) Losses of taxpayers other than corporations.--In the 
     case of a taxpayer other than a corporation, the amount 
     deductible on account of losses from sales or exchanges of 
     capital assets shall not exceed the amount includible on 
     account of gains from sales or exchanges of capital assets.
       ``(B) Deduction under section 1201.--The deduction under 
     section 1201 shall not be allowed.''
       (B) Subparagraph (B) of section 172(d)(4) of such Code is 
     amended by striking ``paragraphs (1) and (3)'' and inserting 
     ``paragraphs (1), (2)(B), and (3)''.
       (5) Paragraph (4) of section 642(c) of such Code is amended 
     to read as follows:
       ``(4) Adjustments.--To the extent that the amount otherwise 
     allowable as a deduction under this subsection consists of 
     gain from the sale or exchange of capital assets held for 
     more than 1 year, proper adjustment shall be made for any 
     deduction allowable to the estate or trust under section 1201 
     (relating to deduction for excess of capital gains over 
     capital losses). In the case of a trust, the deduction 
     allowed by this subsection shall be subject to section 681 
     (relating to unrelated business income).''
       (6) Paragraph (3) of section 643(a) of such Code is amended 
     by adding at the end thereof the following new sentence: 
     ``The deduction under section 1201 (relating to deduction of 
     excess of capital gains over capital losses) shall not be 
     taken into account.''
       (7) Paragraph (4) of section 691(c) of such Code is amended 
     by striking ``sections 1(h), 1201, and 1211'' and inserting 
     ``sections 1201 and 1211''.
     [[Page H2609]]   (8) The second sentence of section 871(a)(2) 
     of such Code is amended by inserting ``such gains and losses 
     shall be determined without regard to section 1201 (relating 
     to deduction for capital gains) and'' after ``except that''.
       (9) Subsection (d) of section 1044 of such Code is amended 
     by striking the last sentence.
       (10)(A) Paragraph (2) of section 1211(b) of such Code is 
     amended to read as follows:
       ``(2) the sum of--
       ``(A) the excess of the net short-term capital loss over 
     the net long-term capital gain, and
       ``(B) one-half of the excess of the net long-term capital 
     loss over the net short-term capital gain.''
       (B) So much of paragraph (2) of section 1212(b) of such 
     Code as precedes subparagraph (B) thereof is amended to read 
     as follows:
       ``(2) Special rules.--
       ``(A) Adjustments.--
       ``(i) For purposes of determining the excess referred to in 
     paragraph (1)(A), there shall be treated as short-term 
     capital gain in the taxable year an amount equal to the 
     lesser of--

       ``(I) the amount allowed for the taxable year under 
     paragraph (1) or (2) of section 1211(b), or
       ``(II) the adjusted taxable income for such taxable year.

       ``(ii) For purposes of determining the excess referred to 
     in paragraph (1)(B), there shall be treated as short-term 
     capital gain in the taxable year an amount equal to the sum 
     of--

       ``(I) the amount allowed for the taxable year under 
     paragraph (1) or (2) of section 1211(b) or the adjusted 
     taxable income for such taxable year, whichever is the least, 
     plus
       ``(II) the excess of the amount described in subclause (I) 
     over the net short-term capital loss (determined without 
     regard to this subsection) for such year.''

       (11) Paragraph (1) of section 1402(i) of such Code is 
     amended by inserting ``, and the deduction provided by 
     section 1201 shall not apply'' before the period at the end 
     thereof.
       (12) Section 12 of such Code is amended by striking 
     paragraph (4) and redesignating the following paragraphs 
     accordingly.
       (13) Paragraph (2) of section 527(b) of such Code is hereby 
     repealed.
       (14) Subparagraph (D) of section 593(b)(2) of such Code is 
     amended by adding ``and'' at the end of clause (iii), by 
     striking ``, and'' at the end of clause (iv) and inserting a 
     period, and by striking clause (v).
       (15) Paragraph (2) of section 801(a) of such Code is hereby 
     repealed.
       (16) Subsection (c) of section 831 of such Code is amended 
     by striking paragraph (1) and redesignating the following 
     paragraphs accordingly.
       (17)(A) Subparagraph (A) of section 852(b)(3) of such Code 
     is amended by striking ``, determined as provided in section 
     1201(a), on'' and inserting ``of 17.5 percent of''.
       (B) Clause (iii) of section 852(b)(3)(D) of such Code is 
     amended--
       (i) by striking ``65 percent'' and inserting ``82.5 
     percent'', and
       (ii) by striking ``section 1201(a)'' and inserting 
     ``subparagraph (A)''.
       (18) Clause (ii) of section 857(b)(3)(A) of such Code is 
     amended by striking ``determined at the rate provided in 
     section 1201(a) on'' and inserting ``of 17.5 percent of''.
       (19) Paragraph (1) of section 882(a) of such Code is 
     amended by striking ``section 11, 55, 59A, or 1201(a)'' and 
     inserting ``section 11, 55, or 59A''.
       (20) Subsection (b) of section 904 of such Code is amended 
     by striking paragraphs (2)(B), (3)(B), (3)(D), and (3)(E).
       (21) Subsection (b) of section 1374 of such Code is amended 
     by striking paragraph (4).
       (22) Subsection (b) of section 1381 is amended by striking 
     ``or 1201''.
       (23) Subsection (e) of section 1445 of such Code is 
     amended--
       (A) in paragraph (1) by striking ``35 percent (or, to the 
     extent provided in regulations, 28 percent)'' and inserting 
     ``17.5 percent (or, to the extent provided in regulations, 
     19.8 percent)'', and
       (B) in paragraph (2) by striking ``35 percent'' and 
     inserting ``17.5 percent''.
       (24) Clause (i) of section 6425(c)(1)(A) of such Code is 
     amended by striking ``or 1201(a)''.
       (25) Clause (i) of section 6655(g)(1)(A) of such Code is 
     amended by striking ``or 1201(a)''.
       (26)(A) The second sentence of section 7518(g)(6)(A) of 
     such Code is amended--
       (i) by striking ``during a taxable year to which section 
     1(h) or 1201(a) applies'', and
       (ii) by striking ``28 percent (34 percent'' and inserting 
     ``19.8 percent (17.5 percent''.
       (B) The second sentence of section 607(h)(6)(A) of the 
     Merchant Marine Act, 1936 is amended--
       (i) by striking ``during a taxable year to which section 
     1(h) or 1201(a) of such Code applies'', and
       (ii) by striking ``28 percent (34 percent'' and inserting 
     ``19.8 percent (17.5 percent''.
       (d) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to taxable years ending after December 31, 1994.
       (2) Contributions.--The amendment made by subsection (c)(3) 
     shall apply only to contributions on or after January 1, 
     1995.
       (3) Withholding.--The amendment made by subsection (c)(23) 
     shall apply only to amounts paid after the date of the 
     enactment of this Act.

     SEC. 1002. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF 
                   DETERMINING GAIN OR LOSS.

       (a) In General.--Part II of subchapter O of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to basis rules of 
     general application) is amended by inserting after section 
     1021 the following new section:

     ``SEC. 1022. INDEXING OF CERTAIN ASSETS FOR PURPOSES OF 
                   DETERMINING GAIN OR LOSS.

       ``(a) General Rule.--
       ``(1) Indexed basis substituted for adjusted basis.--Except 
     as otherwise provided in this subsection, if an indexed asset 
     which has been held for more than 1 year is sold or otherwise 
     disposed of, for purposes of this title the indexed basis of 
     the asset shall be substituted for its adjusted basis.
       ``(2) Exception for depreciation, etc.--The deduction for 
     depreciation, depletion, and amortization shall be determined 
     without regard to the application of paragraph (1) to the 
     taxpayer or any other person.
       ``(b) Indexed Asset.--
       ``(1) In general.--For purposes of this section, the term 
     `indexed asset' means--
       ``(A) stock in a corporation, and
       ``(B) tangible property (or any interest therein),
     which is a capital asset or property used in the trade or 
     business (as defined in section 1231(b)).
       ``(2) Certain property excluded.--For purposes of this 
     section, the term `indexed asset' does not include--
       ``(A) Creditor's interest.--Any interest in property which 
     is in the nature of a creditor's interest.
       ``(B) Options.--Any option or other right to acquire an 
     interest in property.
       ``(C) Net lease property.--In the case of a lessor, net 
     lease property (within the meaning of subsection (i)(3)).
       ``(D) Certain preferred stock.--Stock which is fixed and 
     preferred as to dividends and does not participate in 
     corporate growth to any significant extent.
       ``(E) Stock in foreign corporations.--Stock in a foreign 
     corporation.
       ``(F) Stock in s corporations.--Stock in an S corporation.
       ``(3) Exception for stock in foreign corporation which is 
     regularly traded on national or regional exchange.--Paragraph 
     (2)(E) shall not apply to stock in a foreign corporation the 
     stock of which is listed on the New York Stock Exchange, the 
     American Stock Exchange, the national market system operated 
     by the National Association of Securities Dealers, or any 
     domestic regional exchange for which quotations are published 
     on a regular basis other than--
       ``(A) stock of a foreign investment company (within the 
     meaning of section 1246(b)),
       ``(B) stock in a passive foreign investment company (as 
     defined in section 1296), and
       ``(C) stock in a foreign corporation held by a United 
     States person who meets the requirements of section 
     1248(a)(2).
       ``(4) Treatment of american depository receipts.--For 
     purposes of this section, an American depository receipt for 
     stock in a foreign corporation shall be treated as stock in 
     such corporation.
       ``(c) Indexed Basis.--For purposes of this section--
       ``(1) General rule.--The indexed basis for any asset is--
       ``(A) the adjusted basis of the asset, multiplied by
       ``(B) the applicable inflation ratio.
       ``(2) Applicable inflation ratio.--The applicable inflation 
     ratio for any asset is the percentage arrived at by 
     dividing--
       ``(A) the gross domestic product deflator for the calendar 
     quarter in which the disposition takes place, by
       ``(B) the gross domestic product deflator for the calendar 
     quarter in which the asset was acquired by the taxpayer (or, 
     if later, the calendar quarter ending on December 31, 1994).
     The applicable inflation ratio shall never be less than 1. 
     The applicable inflation ratio for any asset shall be rounded 
     to the nearest \1/1000\.
       ``(3) Gross domestic product deflator.--The gross domestic 
     product deflator for any calendar quarter is the implicit 
     price deflator for the gross domestic product for such 
     quarter (as shown in the first revision thereof).
       ``(d) Short Sales.--
       ``(1) In general.--In the case of a short sale of an 
     indexed asset with a short sale period in excess of 1 year, 
     for purposes of this title, the amount realized shall be an 
     amount equal to the amount realized (determined without 
     regard to this paragraph) multiplied by the applicable 
     inflation ratio. In applying subsection (c)(2) for purposes 
     of the preceding sentence, the date on which the property is 
     sold short shall be treated as the date of acquisition and 
     the closing date for the sale shall be treated as the date of 
     disposition.
       ``(2) Short sale of substantially identical property.--If 
     the taxpayer or the taxpayer's spouse sells short property 
     substantially identical to an asset held by the taxpayer, the 
     asset held by the taxpayer and the substantially identical 
     property shall not be treated as indexed assets for the short 
     sale period.
       ``(3) Short sale period.--For purposes of this subsection, 
     the short sale period begins on the day after property is 
     sold and ends on the closing date for the sale.
     [[Page H2610]]   ``(e) Treatment of Regulated Investment 
     Companies and Real Estate Investment Trusts.--
       ``(1) Adjustments at entity level.--
       ``(A) In general.--Except as otherwise provided in this 
     paragraph, the adjustment under subsection (a) shall be 
     allowed to any qualified investment entity (including for 
     purposes of determining the earnings and profits of such 
     entity).
       ``(B) Exception for qualification purposes.--This section 
     shall not apply for purposes of sections 851(b) and 856(c).
       ``(2) Adjustments to interests held in entity.--
       ``(A) In general.--Stock in a qualified investment entity 
     shall be an indexed asset for any calendar month in the same 
     ratio as the fair market value of the assets held by such 
     entity at the close of such month which are indexed assets 
     bears to the fair market value of all assets of such entity 
     at the close of such month.
       ``(B) Ratio of 90 percent or more.--If the ratio for any 
     calendar month determined under subparagraph (A) would (but 
     for this subparagraph) be 90 percent or more, such ratio for 
     such month shall be 100 percent.
       ``(C) Ratio of 10 percent or less.--If the ratio for any 
     calendar month determined under subparagraph (A) would (but 
     for this subparagraph) be 10 percent or less, such ratio for 
     such month shall be zero.
       ``(D) Valuation of assets in case of real estate investment 
     trusts.--Nothing in this paragraph shall require a real 
     estate investment trust to value its assets more frequently 
     than once each 36 months (except where such trust ceases to 
     exist). The ratio under subparagraph (A) for any calendar 
     month for which there is no valuation shall be the trustee's 
     good faith judgment as to such valuation.
       ``(3) Qualified investment entity.--For purposes of this 
     subsection, the term `qualified investment entity' means--
       ``(A) a regulated investment company (within the meaning of 
     section 851), and
       ``(B) a real estate investment trust (within the meaning of 
     section 856).
       ``(f) Other Pass-Thru Entities.--
       ``(1) Partnerships.--In the case of a partnership, the 
     adjustment made under subsection (a) at the partnership level 
     shall be passed through to the partners.
       ``(2) S corporations.--In the case of an S corporation, the 
     adjustment made under subsection (a) at the corporate level 
     shall be passed through to the shareholders.
       ``(3) Common trust funds.--In the case of a common trust 
     fund, the adjustment made under subsection (a) at the trust 
     level shall be passed through to the participants.
       ``(g) Dispositions Between Related Persons.--
       ``(1) In general.--This section shall not apply to any sale 
     or other disposition of property between related persons 
     except to the extent that the basis of such property in the 
     hands of the transferee is a substituted basis.
       ``(2) Related persons defined.--For purposes of this 
     section, the term `related persons' means--
       ``(A) persons bearing a relationship set forth in section 
     267(b), and
       ``(B) persons treated as single employer under subsection 
     (b) or (c) of section 414.
       ``(h) Transfers To Increase Indexing Adjustment.--If any 
     person transfers cash, debt, or any other property to another 
     person and the principal purpose of such transfer is to 
     secure or increase an adjustment under subsection (a), the 
     Secretary may disallow part or all of such adjustment or 
     increase.
       ``(i) Special Rules.--For purposes of this section:
       ``(1) Treatment as separate asset.--In the case of any 
     asset, the following shall be treated as a separate asset:
       ``(A) A substantial improvement to property.
       ``(B) In the case of stock of a corporation, a substantial 
     contribution to capital.
       ``(C) Any other portion of an asset to the extent that 
     separate treatment of such portion is appropriate to carry 
     out the purposes of this section.
       ``(2) Assets which are not indexed assets throughout 
     holding period.--The applicable inflation ratio shall be 
     appropriately reduced for periods during which the asset was 
     not an indexed asset.
       ``(3) Net lease property defined.--The term `net lease 
     property' means leased property where--
       ``(A) the term of the lease (taking into account options to 
     renew) was 50 percent or more of the useful life of the 
     property, and
       ``(B) for the period of the lease, the sum of the 
     deductions with respect to such property which are allowable 
     to the lessor solely by reason of section 162 (other than 
     rents and reimbursed amounts with respect to such property) 
     is 15 percent or less of the rental income produced by such 
     property.
       ``(4) Treatment of certain distributions.--A distribution 
     with respect to stock in a corporation which is not a 
     dividend shall be treated as a disposition.
       ``(5) Section cannot increase ordinary loss.--To the extent 
     that (but for this paragraph) this section would create or 
     increase a net ordinary loss to which section 1231(a)(2) 
     applies or an ordinary loss to which any other provision of 
     this title applies, such provision shall not apply. The 
     taxpayer shall be treated as having a long-term capital loss 
     in an amount equal to the amount of the ordinary loss to 
     which the preceding sentence applies.
       ``(6) Acquisition date where there has been prior 
     application of subsection (a)(1) with respect to the 
     taxpayer.--If there has been a prior application of 
     subsection (a)(1) to an asset while such asset was held by 
     the taxpayer, the date of acquisition of such asset by the 
     taxpayer shall be treated as not earlier than the date of the 
     most recent such prior application.
       ``(7) Collapsible corporations.--The application of section 
     341(a) (relating to collapsible corporations) shall be 
     determined without regard to this section.
       ``(j) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''
       (b) Clerical Amendment.--The table of sections for part II 
     of subchapter O of chapter 1 of such Code is amended by 
     inserting after the item relating to section 1021 the 
     following new item:

``Sec. 1022. Indexing of certain assets for purposes of determining 
              gain or loss.''

       (c) Adjustment To Apply for Purposes of Determining 
     Earnings and Profits.--Subsection (f) of section 312 of such 
     Code (relating to effect on earnings and profits of gain or 
     loss and of receipt of tax-free distributions) is amended by 
     adding at the end thereof the following new paragraph:
       ``(3) Effect on earnings and profits of indexed basis.--

  For substitution of indexed basis for adjusted basis in the case of 
the disposition of certain assets, see section 1022(a)(1).''

       (d) Effective Date.--The amendments made by this section 
     shall apply to dispositions after December 31, 1994, in 
     taxable years ending after such date.

     SEC. 1003. CAPITAL LOSS DEDUCTION ALLOWED WITH RESPECT TO 
                   SALE OR EXCHANGE OF PRINCIPAL RESIDENCE.

       (a) In General.--Subsection (c) of section 165 of the 
     Internal Revenue Code of 1986 (relating to limitation on 
     losses of individuals) is amended by striking ``and'' at the 
     end of paragraph (2), by striking the period at the end of 
     paragraph (3) and inserting ``; and'', and by adding at the 
     end the following new paragraph:
       ``(4) losses arising from the sale or exchange of the 
     principal residence (within the meaning of section 1034) of 
     the taxpayer.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to sales and exchanges after December 31, 1994, 
     in taxable years ending after such date.
                    TITLE II--NEUTRAL COST RECOVERY

     SEC. 2001. DEPRECIATION ADJUSTMENT FOR CERTAIN PROPERTY 
                   PLACED IN SERVICE AFTER DECEMBER 31, 1994.

       (a) In General.--Section 168 of the Internal Revenue Code 
     of 1986 (relating to accelerated cost recovery system) is 
     amended by adding at the end thereof the following new 
     subsection:
       ``(k) Deduction Adjustment To Allow Equivalent of Expensing 
     For Certain Property Placed in Service After December 31, 
     1994.--
       ``(1) In general.--In the case of tangible property placed 
     in service after December 31, 1994, the deduction under this 
     section with respect to such property--
       ``(A) shall be determined by substituting `150 percent' for 
     `200 percent' in subsection (b)(1) in the case of property to 
     which the 200 percent declining balance method would 
     otherwise apply, and
       ``(B) for any taxable year after the taxable year during 
     which the property is placed in service shall be--
       ``(i) the amount determined under this section for such 
     taxable year without regard to this subparagraph, multiplied 
     by
       ``(ii) the applicable neutral cost recovery ratio for such 
     taxable year.
       ``(2) Applicable neutral cost recovery ratio.--For purposes 
     of paragraph (1)--
       ``(A) In general.--The applicable neutral cost recovery 
     ratio for the property for any taxable year is the number 
     determined by--
       ``(i) dividing--

       ``(I) the gross domestic product deflator for the calendar 
     quarter ending in such taxable year which corresponds to the 
     calendar quarter during which the property was placed in 
     service by the taxpayer, by
       ``(II) the gross domestic product deflator for the calendar 
     quarter during which the property was placed in service by 
     the taxpayer, and

       ``(ii) then multiplying the number determined under clause 
     (i) by the number equal to 1.035 to the nth power where `n' 
     is the number of full years in the period beginning on the 
     1st day of the calendar quarter during which the property was 
     placed in service by the taxpayer and ending on the day 
     before the beginning of the corresponding calendar quarter 
     ending during such taxable year.

     The applicable neutral cost recovery ratio shall never be 
     less than 1. The applicable neutral cost recovery ratio shall 
     be rounded to the nearest \1/1000\.
       ``(B) Special rule for certain property.--In the case of 
     property described in paragraph (2) or (3) of subsection (b) 
     or in subsection (g), the applicable neutral cost recovery 
     ratio shall be determined without regard to subparagraph 
     (A)(ii).
       ``(3) Gross domestic product deflator.--For purposes of 
     paragraph (2), the gross domestic product deflator for any 
     calendar quarter is the implicit price deflator for the gross 
     domestic product for such quarter (as shown in the first 
     revision thereof).
     [[Page H2611]]   ``(4) Coordination with indexing of basis 
     for purposes of determining gain or loss.--Section 1022 shall 
     not apply to any property to which this subsection applies.
       ``(5) Election not to have subsection apply.--This 
     subsection shall not apply to any property if the taxpayer 
     elects not to have this subsection apply to such property. 
     Such an election, once made, shall be irrevocable.
       ``(6) Churning transactions.--This subsection shall not 
     apply to any property if this section would not apply to such 
     property were subsection (f)(5)(A)(ii) applied by 
     substituting `1995' for `1981' and `1994' for `1980'.
       ``(7) Additional deduction not to affect basis or 
     recapture.--The additional amount determined under this 
     section by reason of this subsection shall not be taken into 
     account in determining the adjusted basis of any property or 
     of any interest in a pass-thru entity (as defined in section 
     1201(d)(2)) which holds such property and shall not be 
     treated as a deduction for depreciation for purposes of 
     sections 1245 and 1250.''
       (b) Minimum Tax Treatment.--
       (1) Paragraph (1) of section 56(a) of such Code is amended 
     by adding at the end thereof the following new subparagraph:
       ``(E) Use of neutral cost recovery ratio.--In the case of 
     property to which section 168(k) applies and which is placed 
     in service after December 31, 1994, the deduction allowable 
     under this paragraph with respect to such property for any 
     taxable year (after the taxable year during which the 
     property is placed in service) shall be--
       ``(i) the amount so allowable for such taxable year without 
     regard to this subparagraph, multiplied by
       ``(ii) the applicable neutral cost recovery ratio for such 
     taxable year (as determined under section 168(k)).
     This subparagraph shall not apply to any property with 
     respect to which there is an election in effect not to have 
     section 168(k)) apply.''
       (2) Subparagraph (C) of section 56(g)(4) of such Code is 
     amended by adding at the end the following new clause:
       ``(v) Neutral cost recovery deduction.--Clause (i) shall 
     not apply to the additional deduction allowable by reason of 
     section 168(k).''
       (c) Coordination With Depreciation Limitation on Certain 
     Automobiles.--Clause (i) of section 280F(a)(1)(B) of such 
     Code is amended by adding at the end the following new 
     sentence: ``For purposes of this clause, the unrecovered 
     basis of any passenger automobile shall be treated as 
     including the additional amount determined under section 168 
     by reason of subsection (k) thereof to the extent not allowed 
     as a deduction by reason of
      this paragraph for any taxable year in the recovery 
     period.''
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after December 31, 1994.
     TITLE III--RISK ASSESSMENT AND COST/BENEFIT ANALYSIS FOR NEW 
                              REGULATIONS

     SEC. 3001. FINDINGS.

       The Congress finds that:
       (1) Environmental, health, and safety regulations have led 
     to dramatic improvements in the environment and have 
     significantly reduced human health risk; however, the Federal 
     regulations that have led to these improvements have been 
     more costly and less effective than they could have been; too 
     often, regulatory priorities have not been based upon a 
     realistic consideration of risk, risk reduction 
     opportunities, and costs.
       (2) The public and private resources available to address 
     health, safety, and environmental concerns are not unlimited; 
     those resources need to be allocated to address the greatest 
     needs in the most cost-effective manner and so that the 
     incremental costs of regulatory options are reasonably 
     related to the incremental benefits.
       (3) To provide more cost-effective and costreasonable 
     protection to human health and the environment, regulatory 
     priorities should be based upon realistic consideration of 
     risk; the priority setting process must include 
     scientifically sound, objective, and unbiased risk 
     assessments, comparative risk analysis, and risk management 
     choices that are grounded in cost-benefit principles.
       (4) Risk assessment has proven to be a useful decision 
     making tool; however, improvements are needed in both the 
     quality of assessments and the characterization and 
     communication of findings; scientific and other data must be 
     better collected, organized, and evaluated; most importantly, 
     the critical information resulting from a risk assessment 
     must be effectively communicated in an objective and unbiased 
     manner to decision makers, and from decision makers to the 
     public.
       (5) The public stake holders must be fully involved in the 
     risk-decision making process. They have the right-to-know 
     about the risks addressed by regulation, the amount of risk 
     to be reduced, the quality of the science used to support 
     decisions, and the cost of implementing and complying with 
     regulations. This knowledge will allow for public scrutiny 
     and promote quality, integrity, and responsiveness of agency 
     decisions.
             Subtitle A--Risk Assessment and Communication

     SEC. 3101. SHORT TITLE.

       This subtitle may be cited as the ``Risk Assessment and 
     Communication Act of 1995''.

     SEC. 3102. PURPOSES.

       The purposes of this subtitle are--
       (1) to present the public and executive branch with the 
     most scientifically objective and unbiased information 
     concerning the nature and magnitude of health, safety, and 
     environmental risks in order to provide for sound regulatory 
     decisions and public education;
       (2) to provide for full consideration and discussion of 
     relevant data and potential methodologies;
       (3) to require explanation of significant choices in the 
     risk assessment process which will allow for better peer 
     review and public understanding; and
       (4) to improve consistency within the executive branch in 
     preparing risk assessments and risk characterizations.

     SEC. 3103. EFFECTIVE DATE; APPLICABILITY; SAVINGS PROVISIONS.

       (a) Effective Date.--Except as otherwise specifically 
     provided in this subtitle, the provisions of this subtitle 
     shall take effect 18 months after the date of enactment of 
     this subtitle.
       (b) Applicability.--
       (1) In general.--Except as provided in paragraph (2), this 
     title applies to all risk assessments and risk 
     characterizations prepared by, or on behalf of, any Federal 
     agency in connection with Federal regulatory programs 
     designed to protect human health, safety, or the environment.
       (2) Exceptions.--(A) This title does not apply to risk 
     assessments or risk characterizations performed with respect 
     to either of the following:
       (i) A situation that the head of the agency considers to be 
     an emergency.
       (ii) A screening analysis, including a screening analysis 
     for purposes of product regulation, product reregistration, 
     or premanufacturing notices.
       (B) No analysis shall be treated as a screening analysis 
     for purposes of subparagraph (A) if the results of such 
     analyses are used either--
       (i) as the basis for imposing restrictions on substances or 
     activities, or
       (ii) to characterize a positive finding of risks from 
     substances or activities in any final agency document made 
     available to the general public.
       (3) Labels.--This title shall not apply to any food, drug, 
     or other product label or to any risk characterization 
     appearing on any such label.
       (c) Savings Provisions.--Nothing in this subtitle shall be 
     construed to modify any statutory standard or requirement 
     designed to protect health, safety, or the environment. 
     Nothing in this subtitle shall be interpreted to preclude the 
     consideration of any data or the calculation of any estimate 
     to more fully describe risk or provide examples of scientific 
     uncertainty or variability. Nothing in this title shall be 
     construed to require the disclosure of any trade secret or 
     other confidential information.

     SEC. 3104. PRINCIPLES FOR RISK ASSESSMENT.

       (a) In General.--The head of each Federal agency shall 
     apply the principles set forth in subsection (b) when 
     preparing risk assessments in order to assure that such risk 
     assessments and all of their components distinguish 
     scientific findings from other considerations and are, to the 
     maximum extent feasible, scientifically objective, unbiased, 
     and inclusive of all relevant data. Discussions or 
     explanations required under this section need not be repeated 
     in each risk assessment document as long as there is a 
     reference to the relevant discussion or explanation in 
     another agency document.
       (b) Principles.--The principles to be applied when 
     preparing risk assessments are as follows:
       (1) When assessing human health risks, a risk assessment 
     shall consider and discuss both laboratory and 
     epidemiological data of sufficient quality which finds, or 
     fails to find, a correlation between health risks and a 
     potential toxin or activity. Where conflicts among such data 
     appear to exist, or where animal data is used as a basis to 
     assess human health, the assessment shall include discussion 
     of possible reconciliation of conflicting information, and as 
     appropriate, differences in study designs, comparative 
     physiology, routes of exposure, bioavailability, 
     pharmacokinetics, and any other relevant factor.
       (2) Where a risk assessment involves selection of any 
     significant assumption, inference, or model, the Federal 
     agency preparing the assessment shall--
       (A) present a representative list and explanation of 
     plausible and alternative assumptions, inferences, or models;
       (B) explain the basis for any choices;
       (C) identify any policy or value judgments;
       (D) fully describe any model used in the risk assessment 
     and make explicit the assumptions incorporated in the model; 
     and
       (E) indicate the extent to which any significant model has 
     been validated by, or conflicts with, empirical data.

     SEC. 3105. PRINCIPLES FOR RISK CHARACTERIZATION AND 
                   COMMUNICATION.

       In characterizing risk in any risk assessment document, 
     regulatory proposal or decision, report to Congress, or other 
     document which is made available to the public, each Federal 
     agency characterizing the risk shall comply with each of the 
     following:
       (1) Estimates of risk.--The head of such agency shall 
     describe the populations or natural resources which are the 
     subject of the 
     [[Page H2612]] risk characterization. If a numerical estimate 
     of risk is provided, the agency shall, to the extent feasible 
     and scientifically appropriate, provide--
       (A) the best estimate or estimates for the specific 
     populations or natural resources which are the subject of the 
     characterization (based on the information available to the 
     department, agency, or instrumentality); and
       (B) a statement of the reasonable range of scientific 
     uncertainties.

     In addition to such best estimate or estimates, the Federal 
     agency may present plausible upper-bound or conservative 
     estimates in conjunction with plausible lower bounds 
     estimates. Where appropriate, the Federal agency may present, 
     in lieu of a single best estimate, multiple estimates based 
     on assumptions, inferences, or models which are equally 
     plausible, given current scientific understanding. To the 
     extent practical and appropriate, the Federal agency shall 
     provide descriptions of the distribution and probability of 
     risk estimates to reflect differences in exposure variability 
     in populations and uncertainties.
       (2) Exposure scenarios.--The Federal agency shall explain 
     the exposure scenarios used in any risk assessment, and, to 
     the extent feasible, provide a statement of the size of the 
     corresponding population at risk and the likelihood of such 
     exposure scenarios.
       (3) Comparisons.--To the extent feasible, the Federal 
     agency shall provide a statement that places the nature and 
     magnitude of risks to human health in context. Such statement 
     shall include appropriate comparisons with estimates of risks 
     that are familiar to and routinely encountered by the general 
     public as well as other risks. The statement shall identify 
     relevant distinctions among categories of risk and 
     limitations to comparisons.
       (4) Substitution risks.--When a Federal agency provides a 
     risk assessment or risk characterization for a proposed or 
     final regulatory action, such assessment or characterization 
     shall include a statement of any significant substitution 
     risks to human health, where information on such risks has 
     been provided to the agency.
       (5) Summaries of other risk estimates.--If--
       (A) a Federal agency provides a public comment period with 
     respect to a risk assessment or regulation,
       (B) a commenter provides a risk assessment, and a summary 
     of results of such risk assessment, and
       (C) such risk assessment is consistent with the principles 
     and the guidance provided under this subtitle,

     the agency shall present such summary in connection with the 
     presentation of the agency's risk assessment or the 
     regulation.

     SEC. 3106. GUIDELINES, PLAN FOR ASSESSING NEW INFORMATION, 
                   AND REPORT.

       (a) Guidelines.--Within 15 months after the date of 
     enactment of this subtitle, the President shall issue 
     guidelines for Federal agencies consistent with the risk 
     assessment and characterization principles set forth in 
     sections 3104 and 3105 and shall provide a format for 
     summarizing risk assessment results. In addition, such 
     guidelines shall include guidance on at least the following 
     subjects: criteria for scaling animal studies to assess risks 
     to human health; use of different types of dose-response 
     models; thresholds; definitions, use, and interpretations of 
     the maximum tolerated dose; weighting of evidence with 
     respect to extrapolating human health risks from sensitive 
     species; evaluation of benign tumors, and evaluation of 
     different human health endpoints.
       (b) Plan.--Within 18 months after the date of enactment of 
     this subtitle, each Federal agency shall publish a plan to 
     review and revise any risk assessment published prior to the 
     expiration of such 18-month period if the agency determines 
     that significant new information or methodologies are 
     available that could significantly alter the results of the 
     prior risk assessment. The plan shall provide procedures for 
     receiving and considering new information and risk 
     assessments from the public. The plan may set priorities for 
     review and revision of risk assessments based on factors such 
     Federal agency considers appropriate.
       (c) Report.--Within 3 years after the enactment of this 
     subtitle, each Federal agency shall provide a report to the 
     Congress evaluating the categories of policy and value 
     judgments identified under subparagraph (C) of section 
     3104(b)(2).
       (d) Public Comment and Consultation.--The guidelines, plan 
     and report under this section, shall be developed after 
     notice and opportunity for public comment, and after 
     consultation with representatives of appropriate State 
     agencies and local governments, and such other departments 
     and agencies, offices, organizations, or persons as may be 
     advisable.
       (e) Review.--The President shall review the guidelines 
     published under this section at least every 4 years.

     SEC. 3107. DEFINITIONS.

       For purposes of this subtitle:
       (1) Risk assessment.--The term ``risk assessment'' means 
     the process of identifying hazards and quantifying or 
     describing the degree of toxicity, exposure, or other risk 
     they pose for exposed individuals, populations, or resources. 
     Such term also refers to the document containing the 
     explanation of how the assessment process has been applied to 
     an individual substance, activity, or condition.
       (2) Risk characterization.--The term ``risk 
     characterization'' means that element of a risk assessment 
     that involves presentation of the degree of risk in any 
     regulatory proposal or decision, report to Congress, or other 
     document which is made available to the public. The term 
     includes discussions of uncertainties, conflicting data, 
     estimates, extrapolations, inferences, and opinions.
       (3) Best estimate.--The term ``best estimate'' means an 
     estimate which, to the extent feasible and scientifically 
     appropriate, is based on one of the following:
       (A) Central estimates of risk using the most plausible 
     assumptions.
       (B) An approach which combines multiple estimates based on 
     different scenarios and weighs the probability of each 
     scenario.
       (C) Any other methodology designed to provide the most 
     unbiased representation of the most plausible level of risk, 
     given the current scientific information available to the 
     Federal agency concerned.
       (4) Substitution risk.--The term ``substitution risk'' 
     means a potential increased risk to human health, safety, or 
     the environment from a regulatory option designed to decrease 
     other risks.
       (5) Federal agency.--The term ``Federal agency'' means an 
     executive department, military department, or independent 
     establishment as defined in part I of title 5 of the United 
     States Code, except that such term also includes the Office 
     of Technology Assessment.
       Subtitle B--Analysis of Risk Reduction Benefits and Costs

     SEC. 3201. ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS.

       (a) In General.--Except as provided in subsection (b), the 
     President shall require each executive branch agency to 
     prepare the following for each major rule designed to protect 
     human health, safety, or the environment that is proposed or 
     promulgated by the agency after the date of enactment of this 
     Act:
       (1) For each such proposed or promulgated rule, an 
     assessment of incremental costs and incremental risk 
     reduction or other benefits associated with each significant 
     regulatory alternative considered by the agency in connection 
     with the rule or proposed rule.
       (2) For each such proposed or promulgated rule, to the 
     extent feasible, a comparison of any human health, safety, or 
     environmental risks addressed by the regulatory alternatives 
     to other risks chosen by the head of the agency, including at 
     least 3 other risks regulated by the agency and to at least 3 
     other risks with which the public is familiar.
       (3) For each such proposed or promulgated rule, a statement 
     of other human health risks potentially posed by implementing 
     or complying with the regulatory alternatives, including 
     substitution risks.
       (4) For each final rule, an assessment of the costs and 
     risk reduction or other benefits associated with 
     implementation of, and compliance with, the rule.
       (5) For each final rule, a certification by the head of the 
     agency of each of the following:
       (A) A certification that the assessment under paragraph (4) 
     is based on an objective
      and unbiased scientific and economic evaluation of all 
     significant and relevant information provided to the 
     agency by interested parties relating to the costs, risks, 
     and risk reduction or other benefits addressed by the 
     rule. Such information shall have been subjected to peer 
     review to the extent required by section 3301.
       (B) A certification that the rule will substantially 
     advance the purpose of protecting human health or the 
     environment, as applicable, against the risk addressed by the 
     rule.
       (C) A certification that the rule will produce benefits to 
     human health or the environment that will justify the costs 
     incurred by local and State governments, the Federal 
     Government, and other public and private entities as a result 
     of implementation of and compliance with the rule, as 
     determined under paragraph (1).
       (D) A certification that there is no regulatory alternative 
     that is allowed by the statute under which the regulation is 
     promulgated that would achieve an equivalent reduction in 
     risk in a more cost-effective manner, along with a brief 
     explanation of why other regulatory alternatives that were 
     considered by the head of the agency were found to be less 
     cost-effective.
       (b) Publication.--For each major rule referred to in 
     subsection (a) the head of each agency shall publish in a 
     clear and concise manner in the Federal Register along with 
     the proposed or final regulation, or otherwise make publicly 
     available, the information required to be prepared under 
     subsection (a) of this section.
       (c) Definitions.--For purposes of this section:
       (1) Costs.--The term ``costs'' includes the direct and 
     indirect costs to the United States government, costs to 
     State and local governments, and costs to the private sector, 
     of implementing and complying with a regulatory action.
       (2) Major rule.-- The term ``major rule'' means any 
     regulation that is likely to result in one or more of the 
     following:
       (A) An annual effect on the economy of $25,000,000 or more.
       (B) A major increase in costs or prices for consumers, 
     individual industries, Federal, State, or local government 
     agencies, or geographic regions.
       (C) Significant adverse effects on competition, employment, 
     investment, productivity,
 
[[Page H2613]]

     innovation, or on the ability of United States-based 
     enterprises to compete with foreign-based enterprises in 
     domestic or export markets.
                        Subtitle C--Peer Review

     SEC. 3301. PEER REVIEW PROGRAM.

       (a) Establishment.--For regulatory programs addressing 
     human health, safety, or the environment, the head of each 
     Federal agency shall develop a systematic program for peer 
     review of risk assessments and economic assessments used by 
     the agency. Such program shall be applicable across the 
     agency and--
       (1) shall provide for the creation of peer review panels 
     consisting of independent and external experts who are 
     broadly representative and balanced to the extent feasible;
       (2) may provide for differing levels of peer review 
     depending on the significance or the complexity of the 
     problems or the need for expeditiousness;
       (3) shall not exclude peer reviewers merely because they 
     represent entities that may have a potential interest in the 
     outcome, provided that interest is fully disclosed to the 
     agency; and
       (4) shall provide open opportunity to become part of a peer 
     review panel at a minimum by soliciting nominations through a 
     Federal Register announcement.
       (b) Requirement for Peer Review.--Each Federal agency shall 
     provide for peer review of scientific and economic 
     information used for purposes of any evaluation under section 
     3201(a)(5)(A) or for purposes of any significant risk or cost 
     assessment prepared in connection with a major rule. In 
     addition, the Director of the Office of Management and Budget 
     shall order that peer review be provided for any major risk 
     assessment or cost assessment that may have a significant 
     impact on public policy decisions.
       (c) Contents.--
       (1) In general.--Each peer review under this section shall 
     include a report to the Federal agency concerned with respect 
     to each of the following:
       (A) An evaluation of the technical, scientific, and 
     economic merit of the data and methods used for the 
     assessment and analysis.
       (B) A list of any considerations that were not taken into 
     account in the assessment and analysis, but were considered 
     appropriated by a majority of the members of the peer review 
     panel.
       (C) A discussion of the methodology used for the assessment 
     and analysis.
       (2) Comments and appendix.--Each peer review report under 
     this subsection shall include--
       (A) all comments supported by a majority of the members of 
     the peer review panel submitting the report; and
       (B) an appendix which sets forth the dissenting opinions 
     that any peer review panel member wants to express.
       (3) Separation of assessments.--Peer review of human 
     health, safety, environmental, and economic assessments may 
     be separated for purpose of this subtitle.
       (d) Response to Peer Review.--The head of the Federal 
     agency shall provide a written response to all significant 
     peer review comments.
       (e) Availability to Public.--All peer review comments or 
     conclusions and the agency's responses shall be made 
     available to the public and shall be made part of the 
     administrative record for purposes of judicial review of any 
     final agency action.
       (f) Previously Reviewed Data and Analysis.--No peer review 
     shall be required under this section for any data or analysis 
     which has been previously subjected to peer review or for any 
     component of any evaluation or assessment previously 
     subjected to peer review.
       (g) National Panels.--The President shall appoint National 
     Peer Review Panels to annually review the risk assessment and 
     cost assessment practices of each Federal agency for programs 
     designed to protect human health, safety, or the environment. 
     The Panel shall submit a report to the Congress no less 
     frequently than annually containing the results of such 
     review.
       (h) Major Rule Defined.--For purposes of this section, the 
     term ``major rule'' has the same meaning as provided by 
     section 3201(c) except that ``$100,000,000'' shall be 
     substituted for ``$25,000,000''.
   TITLE IV--ESTABLISHMENT OF FEDERAL REGULATORY BUDGET COST CONTROL

     SEC. 4001. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF 
                   1974.

       (a) Federal Regulatory Budget Cost Control System.--Title 
     III of the Congressional Budget Act of 1974 is amended by 
     inserting before section 300 the following new center heading 
     ``PART A--GENERAL PROVISIONS'' and by adding at the end the 
     following new part:
            ``PART B--FEDERAL REGULATORY BUDGET COST CONTROL

     ``SEC. 321. OMB-CBO REPORTS.

       ``(a) OMB-CBO Initial Report.--Within 1 year after the date 
     of enactment of this section, OMB and CBO shall jointly issue 
     a report to the President and each House of Congress that 
     contains the following:
       ``(1) For the first budget year beginning after the 
     issuance of this report, a projection of the aggregate direct 
     cost to the private sector of complying with all Federal 
     regulations and rules in effect immediately before issuance 
     of the report containing the projection for that budget year 
     of the effect of current-year Federal regulations and rules 
     into the budget year and the outyears based on those 
     regulations and rules.
       ``(2) A calculation of the estimated aggregate direct cost 
     to the private sector of compliance with all Federal 
     regulations and rules as a percentage of the gross domestic 
     product (GDP).
       ``(3) The estimated marginal cost (measured as a reduction 
     in estimated gross domestic product) to the private sector of 
     compliance with all Federal regulations and rules in excess 
     of 5 percent of the gross domestic product.
       ``(4) The effect on the domestic economy of different types 
     of Federal regulations and rules.
       ``(5) The appropriate level of personnel, administrative 
     overhead, and programmatic savings that should be achieved on 
     a fiscal year by fiscal year basis by Federal agencies that 
     issue regulations or rules with direct costs to the private 
     sector through the reduction of such aggregate costs to the 
     private sector by equal percentage increments in the 6 years 
     following the budget year until the aggregate level of such 
     costs does not exceed 5 percent of the estimated gross 
     domestic product for the same fiscal year as the estimated 
     costs that will be incurred.
       ``(6) Recommendations for budgeting, technical, and 
     estimating changes to improve the Federal regulatory 
     budgeting process.
       ``(b) Update Reports.--OMB and CBO shall issue update 
     reports on September 15th of the fifth year beginning after 
     issuance of the initial report and at 5-year intervals 
     thereafter containing all the information required in the 
     initial report, but based upon all Federal regulations and 
     rules in effect immediately before issuance of the most 
     recent update report.
       ``(c) Initial Baseline Report.--Within 30 days after the 
     date of enactment of this section, OMB and CBO shall jointly 
     issue a report to the President and each House of Congress 
     that contains an initial aggregate regulatory baseline for 
     the first budget year that begins at least 120 days after 
     that date of enactment. That baseline will be a projection of 
     the aggregate direct cost to the private sector of complying 
     with all Federal regulations and rules in effect immediately 
     before issuance of the report containing the projection for 
     that budget year of the effect of current-year Federal 
     regulations and rules into the budget year and the outyears 
     based on those regulations and rules.

     ``SEC. 322. AGGREGATE REGULATORY BASELINE.

       ``(a) In General.--For the first budget year beginning 
     after the date of enactment of this section and for every 
     other fiscal year thereafter, the aggregate regulatory 
     baseline refers to a projection of the aggregate direct cost 
     to the private sector of complying with all Federal 
     regulations and rules in effect immediately before issuance 
     of the report containing the projection for that budget year 
     of the effect of current-year Federal regulations and rules 
     into the budget year and the outyears based on those 
     regulations and rules. However, in the case of each of the 
     succeeding fiscal years, the baseline shall be adjusted for 
     the estimated growth during that year in the gross domestic 
     product (GDP).
       ``(b) OMB-CBO Aggregate Regulatory Baseline Reports.--(1) 
     The first budget year for which there shall be an aggregate 
     regulatory baseline shall be the budget year to which the 
     initial OMB-CBO baseline report issued under section 321(c) 
     pertains.
       ``(2) In the case of each budget year after the budget year 
     referred to in paragraph (1), not later than September 15 of 
     the current year, OMB and CBO shall jointly issue a report 
     containing the baseline referred to in subsection (a) for 
     that budget year.

     ``SEC. 323. RECONCILIATION AND ALLOCATIONS.

       ``(a) Reconciliation Directives.--In addition to the 
     requirements of section 310, a concurrent resolution on the 
     budget for any fiscal year shall specify--
       ``(1) changes in laws and regulations and rules necessary 
     to reduce the aggregate direct cost to the private sector of 
     complying with all Federal regulations by 6.5 percent for the 
     budget year (as measured against the aggregate regulatory 
     baseline for the first budget year to which this part 
     applies) and by equal percentage increments for each of the 
     outyears (until the aggregate level of such costs does not 
     exceed 5 percent of the estimated gross domestic product for 
     the same fiscal year as the estimated costs that will be 
     incurred) for Federal agencies that issue regulations or 
     rules producing direct costs to the private sector; and
       ``(2) changes in laws necessary to achieve reductions in 
     the level of personnel and administrative overhead and to 
     achieve programmatic savings for the budget year and the 
     outyears for those agencies of the following:
       ``(A) In the first outyear, one-fourth of the percent of 
     reduction in regulatory authority from the aggregate 
     regulatory base.
       ``(B) In the second outyear, one-third of the percent of 
     reduction in regulatory authority from the aggregate 
     regulatory base.
       ``(C) In the third, fourth, fifth, and sixth years 
     following the budget year, one-half of the percent of 
     reduction in regulatory authority from the aggregate 
     regulatory base.

     Section 310(c) shall not apply with respect to directions 
     made under this section.
       ``(b) Allocation of Totals.--(1) The Committees on the 
     Budget of the House of Representatives and the Senate shall 
     each allocate aggregate 2-year regulatory authority among 
     each committee of its House and by 
     [[Page H2614]] major functional category for the first budget 
     year beginning after the date of enactment of this section 
     and for the second, fourth, and sixth years following the 
     budget year and then every other year thereafter.
       ``(2) As soon as practicable after receiving an allocation 
     under paragraph (1), each committee shall subdivide its 
     allocation among its subcommittees or among programs over 
     which it has jurisdiction.
       ``(c) Point of Order.--(1) It shall not be in order in the 
     House of Representatives or the Senate to consider any bill 
     or resolution, or amendment thereto, which would cause the 
     appropriate allocation made under subsection (b) for a fiscal 
     year of regulatory authority to be exceeded.
       ``(2) Waiver.--The point of order set forth in paragraph 
     (1) may only be waived by the affirmative vote of at least 
     three-fifths of the Members voting, a quorum being present.
       ``(d) Determinations by Budget Committees.--For purposes of 
     this section, the level of regulatory authority for a fiscal 
     year shall be determined by the Committee on the Budget of 
     the House of Representatives or the Senate, as the case may 
     be.
       ``(e) Exceeding Allocation Totals.--Whenever any Committee 
     of the House of Representatives exceeds its allocation of 
     aggregate 2-year regulatory authority under subsection 
     (b)(1), any Member of the House of Representatives may offer 
     a bill in the House (which shall be highly privileged, 
     unamendable, and debateable for 30 minutes) which shall only 
     prohibit the issuance of regulations and rules by any agency 
     under the jurisdiction of that committee for the fiscal years 
     covered by that allocation until that committee eliminates 
     its breach.

     ``SEC. 324. ANALYSIS OF REGULATORY COSTS BY CONGRESSIONAL 
                   BUDGET OFFICE.

       ``CBO shall prepare for each bill or resolution of a public 
     character reported by any committee of the House of 
     Representatives or the Senate (except the Committee on 
     Appropriations of each House), and submit to such committee--
       ``(1) an estimate of the costs which would be incurred by 
     the private sector in carrying out or complying with such 
     bill or resolution in the fiscal year in which it is to 
     become effective and in each of the 4 fiscal years following 
     such fiscal year, together with the basis of each such 
     estimate; and
       ``(2) a comparison of the estimate of costs described in 
     paragraph (1) with any available estimates of costs made by 
     such committee or by any Federal agency.
     ``SEC. 325. DEFINITIONS.

       ``As used in this part:
       ``(1) The term `CBO' refers to the Director of the 
     Congressional Budget Office.
       ``(2) The term `OMB' refers to the Director of the Office 
     of Management and Budget.
       ``(3) The term `regulatory authority' or `regulatory cost' 
     means the direct cost to the private sector of complying with 
     Federal regulations and rules.
       ``(4) The term `direct costs' means (recognizing that 
     direct costs are not the only costs associated with Federal 
     regulation) all expenditures occurring as a direct result of 
     complying with Federal regulation, rule, statement, or 
     legislation, except those applying to the military or agency 
     organization, management, and personnel.
       ``(5) The term `regulation' or the term `rule' means any 
     agency statement of general applicability and future effect 
     designed to implement, interpret, or prescribe law or policy 
     or describing the procedure or practice requirements of any 
     agency, but does not include--
       ``(A) administrative actions governed by the provisions of 
     sections 556 and 557 of title 5, United States Code; or
       ``(B) rules or regulations issued with respect to a 
     military or foreign affairs function of the United States.
       ``(6) The term `agency' means any authority of the United 
     States that is an agency under title section 3502(1) of title 
     44, United States Code, including independent agencies.''.

     SEC. 4002. PRESIDENT'S ANNUAL BUDGET SUBMISSIONS.

       Section 1105(a) of title 31, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(32) a regulatory authority budget analysis of the 
     aggregate direct cost to the private sector of complying with 
     all current and proposed Federal regulations and rules and 
     proposals for complying with section 323 of the Congressional 
     Budget Act of 1974 for the budget year and the outyears.''

     SEC. 4003. ESTIMATION AND DISCLOSURE OF COSTS OF FEDERAL 
                   REGULATION.

       Chapter 6 of title 5, United States Code, popularly known 
     as the ``Regulatory Flexibility Act'', is amended--
       (1) in section 603(a) in the second sentence by inserting 
     before the period the following: ``and the monetary costs to 
     small entities, other businesses, and individuals of 
     complying with the proposed rule'';
       (2) by adding at the end of section 603 the following:
       ``(d) Each initial regulatory flexibility analysis shall 
     also contain a description of the nature and amount of 
     monetary costs that will be incurred by small entities, other 
     businesses, and individuals in complying with the proposed 
     rule.'';
       (3) in section 604(a)--
       (A) in paragraph (2) by striking ``and'' after the 
     semicolon;
       (B) in paragraph (3) by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(4) a statement of the nature and amount of monetary 
     costs that will be incurred by small entities, other 
     businesses, and individuals in complying with the rule.''; 
     and
       (4) in section 607 by inserting before the period the 
     following: ``, except that estimates of monetary costs under 
     sections 603(d) and 604(a)(4) shall only be in the form of a 
     numerical description''.
           TITLE V--STRENGTHENING OF PAPERWORK REDUCTION ACT

     SEC. 5001. SHORT TITLE.

       This title may be cited as the ``Paperwork Reduction Act of 
     1995''.
              Subtitle A--Authorization of Appropriations

     SEC. 5101. AUTHORIZATION OF APPROPRIATIONS.

       Section 3520(a) of title 44, United States Code, is amended 
     by striking out ``$5,500,000 for each of the fiscal years 
     1987, 1988, and 1989.'' and inserting in lieu thereof 
     ``$7,000,000 for fiscal year 1994, $7,500,000 for fiscal year 
     1995, $8,000,000 for fiscal year 1996, $8,500,000 for fiscal 
     year 1997, and $9,000,000 for fiscal year 1998.''.
   Subtitle B--Reducing the Burden of Federal Paperwork on the Public
     SEC. 5201. COVERAGE OF ALL FEDERALLY SPONSORED PAPERWORK 
                   BURDENS.

       Section 3502 of title 44, United States Code, is amended--
       (1) by amending paragraph (3) to read as follows:
       ``(3) the term `burden' means the time, effort, financial 
     resources, and opportunity costs imposed on persons to 
     generate, capture, assemble, process, maintain, and report 
     information to or for a Federal agency, including--
       ``(A) the resources expended for obtaining, reviewing and 
     understanding applicable instructions and requirements;
       ``(B) developing a way to comply with the applicable 
     instructions and requirements;
       ``(C) adjusting the existing ways to comply with any 
     previously applicable instructions and requirements;
       ``(D) searching existing data sources;
       ``(E) obtaining, compiling and maintaining the necessary 
     data;
       ``(F) implementing recordkeeping requirements;
       ``(G) completing and reviewing the collection of 
     information;
       ``(H) retaining, sharing, notifying, reporting, 
     transmitting, labeling, or otherwise disclosing to third 
     parties or the public the information involved; and
       ``(I) carrying out any other information transaction which 
     occurs as a result of the collection of information;'';
       (2) in paragraph (4) by striking out ``of facts or opinions 
     by'' and inserting in lieu thereof ``(through maintenance, 
     retention, notifying, reporting, labeling or disclosure to 
     third parties or the public) of facts or opinions by or 
     for''; and
       (3) in paragraph (17) by inserting ``, including the 
     retention, reporting, notifying, or disclosure to third 
     parties or the public of such records'' before the period.

     SEC. 5202. PAPERWORK REDUCTION GOALS.

       Section 3505 of title 44, United States Code, is amended to 
     read as follows:

     ``Sec.  3505. Assignment of tasks and deadlines

       ``In carrying out the functions under this chapter, the 
     Director shall--
       ``(1) set a governmentwide goal, consistent with improving 
     agency management of the process for the review of each 
     collection of information established under section 3506(e), 
     to reduce by September 30, 1995, the burden of Federal 
     collections of information existing on September 30, 1994, by 
     at least 5 percent;
       ``(2) for the fiscal year beginning on October 1, 1995, and 
     the following 3 fiscal years, set a governmentwide goal, 
     consistent with improving agency management of the process 
     for the review of each collection of information established 
     under section 3506(e), to reduce the burden of Federal 
     collections of information existing at the end of the 
     immediately preceding fiscal year by at least 5 percent;
       ``(3) in establishing the governmentwide goal pursuant to 
     paragraph (2), establish a goal for each agency that--
       ``(A) represents the maximum practicable opportunity to 
     reduce the paperwork burden imposed upon the public by such 
     agency's collections of information, after considering the 
     recommendations of the senior agency official designated 
     under section 3506(b)(1); and
       ``(B) permits the attainment of the governmentwide goal 
     when such agency's goal is aggregated with the individual 
     goals of all other agencies included in the governmentwide 
     goal; and
       ``(4) in each report issued under section 3514, beginning 
     with the report relating to fiscal year 1995, identify any 
     agency initiatives to reduce the burden of the Federal 
     collections of information associated with--
       ``(A) businesses, especially small businesses and those 
     engaged in international competition;
       ``(B) State and local governments; and
       ``(C) educational institutions.''.
Subtitle C--Enhancing Government Responsibility and Accountability for 
                Reducing the Burden of Federal Paperwork

     SEC. 5301. REEMPHASIZING THE RESPONSIBILITY OF THE DIRECTOR 
                   TO CONTROL THE BURDEN OF FEDERAL PAPERWORK.

       Section 3504(c) of title 44, United States Code, is 
     amended--
       (1) in paragraph (3) by redesignating subparagraphs (B) and 
     (C) as subparagraphs (C) and (D), respectively, and inserting 
     after 
     [[Page H2615]] subparagraph (A) the following new 
     subparagraph:
       ``(B) display, to the extent practicable, an estimate of 
     the burden for each response;'';
       (2) by amending paragraphs (5) and (6) to read as follows:
       ``(5) establishing procedures under which an agency is to 
     estimate the burden under this chapter
      to comply with the proposed collection of information;
       ``(6) coordinating with the Office of Federal Procurement 
     Policy to eliminate paperwork burdens associated with 
     procurement and acquisition;'';
       (3) by striking out the period at the end of paragraph (7) 
     and inserting in lieu thereof a semicolon; and
       (4) by adding at the end thereof the following new 
     paragraphs:
       ``(8) minimizing the Federal paperwork burden imposed 
     through Federal collection of information, with particular 
     emphasis on those individuals or entities most adversely 
     affected, including--
       ``(A) businesses, especially small businesses and those 
     engaged in international competition;
       ``(B) State and local governments; and
       ``(C) educational institutions; and
       ``(9) initiating and conducting, with selected agencies and 
     non-Federal entities on a voluntary basis, pilot projects to 
     test or demonstrate the feasibility and benefit of changes or 
     innovations in Federal policies, rules, regulations, and 
     agency procedures to improve information management practices 
     and related management activities (including authority for 
     the Director to waive the application of designated agency 
     regulations or administrative directives after giving timely 
     notice to the public and Congress regarding the need for such 
     waiver).''.
     SEC. 5302. ENHANCING AGENCY RESPONSIBILITY TO OBTAIN PUBLIC 
                   REVIEW OF PROPOSED PAPERWORK BURDENS.

       Section 3507(a) of title 44, United States Code, is 
     amended--
       (1) in paragraph (2)(B) by inserting ``a summary of the 
     request,'' after ``title for the information collection 
     request,'';
       (2) by striking out ``and'' at the end of paragraph (2); 
     and
       (3) by redesignating paragraph (3) as paragraph (4) and 
     inserting after paragraph (2) the following:
       ``(3) the agency provides at least 30 days for public 
     comment to the agency and the Office of Management and Budget 
     after publication of the notice in the Federal Register, 
     except as provided under section 3507 (g) and (k), and the 
     agency head and the Director consider comments received 
     regarding the proposed collection of information; and''.

     SEC. 5303. EXPEDITING REVIEW AT THE OFFICE OF MANAGEMENT AND 
                   BUDGET.

       Section 3507(b) of title 44, United States Code, is 
     amended--
       (1) by striking out the first sentence and inserting in 
     lieu thereof ``The Director shall within 30 days after 
     publication of the notice under subsection (a)(3) that is 
     applicable to a proposed information collection request not 
     contained in a proposed rule, notify the agency involved of 
     the decision to approve or disapprove the proposed 
     information collection request and shall make such decisions 
     publicly available. Any decision to disapprove an information 
     collection request shall include an explanation of the 
     reasons for such decision.'';
       (2) by striking out ``sixty'' each place it appears and 
     inserting ``30'' in each such place;
       (3) by striking out ``thirty'' and inserting in lieu 
     thereof ``30''; and
       (4) by striking out ``one'' and inserting in lieu thereof 
     ``1''.

     SEC. 5304. IMPROVING PUBLIC AND AGENCY SCRUTINY OF PAPERWORK 
                   BURDENS PROPOSED FOR RENEWAL.

       (a) Approval of Information Collection Request.--Section 
     3507(d) of title 44, United States Code, is amended--
       (1) by inserting ``(1)'' after ``(d)''; and
       (2) by adding at the end thereof the following:
       ``(2)(A) If the head of the agency, or the senior official 
     designated under section 3506(b)(1), decides to seek 
     extension of the Director's approval granted for a currently 
     approved information collection request, the agency shall, 
     through the notice prescribed in subsection (a)(2)(B) and 
     such other practicable steps as may be reasonable, seek 
     comment from the agencies, and the public on the continued 
     need for, and burden imposed by, the collection of 
     information.
       ``(B) The agency, after having made a reasonable effort to 
     seek comment under subparagraph (A), but no later than 60 
     days before the expiration date of the control number 
     assigned by the Director for the currently approved 
     information collection request, shall--
       ``(i) evaluate the public comments received;
       ``(ii) conduct the review established under section 
     3506(e); and
       ``(iii) provide to the Director the certification required 
     by section 3506(f), including the text of the certification 
     and any additional relevant information regarding how the 
     information collection request comports with the principles 
     and requirements of this chapter.
       ``(C) Upon receipt of such certification, and prior to the 
     expiration of the control number for that information 
     collection request, the Director shall--
       ``(i) ensure that the agency has taken the actions 
     specified under section 3506(f)(2);
       ``(ii) evaluate the public comments received by the agency 
     or by the Director;
       ``(iii) determine whether the agency certification complies 
     with the standards under section 3506(f)(1); and
       ``(iv) approve or disapprove the information collection 
     request under this chapter.
       ``(3) If a certification is not provided to the Director 
     prior to the beginning of the 60-day period before the 
     expiration of the control number as provided under paragraph 
     (2)(B), the agency shall submit the information collection 
     request for review and approval or disapproval under this 
     chapter.
       ``(4) An agency may not make a substantive or material 
     modification to an information collection request after it 
     has been approved by the Director, unless the modification 
     has been submitted to the Director for review and approval or 
     disapproval under this chapter.''.
       (b) Approval of Information Collection Requirements.--
     Section 3507 of title 44, United States Code, is further 
     amended by adding at the end thereof the following new 
     subsections:
       ``(i)(1) As soon as practicable, but no later than 
     publication of a notice of proposed rulemaking in the Federal 
     Register, each agency shall forward to the Director a copy of 
     any proposed rule which contains a collection of information 
     requirement and upon request, information necessary to make 
     the determination required under this chapter.
       ``(2) Within 60 days after the notice of proposed 
     rulemaking is published in the Federal Register, the Director 
     may file public comments under the standards set forth in 
     section 3508 on the collection of information requirement 
     contained in the proposed rule.
       ``(3) When a final rule is published in the Federal 
     Register, the agency shall explain how any collection of 
     information requirement contained in the final rule responds 
     to the comments, if any, filed by the Director or the public, 
     or explain the reasons such comments were rejected.
       ``(4) The Director has no authority to disapprove any 
     collection of information requirement specifically contained 
     in an agency rule, if the Director has received notice and 
     failed to comment on the rule within 60 days after the notice 
     of proposed rulemaking.
       ``(5) No provision in this section shall be construed to 
     prevent the Director, at the discretion of such officer, 
     from--
       ``(A) disapproving any information collection request which 
     was not specifically required by an agency rule;
       ``(B) disapproving any collection of information 
     requirement contained in an agency rule, if the agency failed 
     to comply with the requirements of paragraph (1) of this 
     subsection;
       ``(C) disapproving any collection of information 
     requirement contained in a final agency rule, if the Director 
     finds within 60 days after the publication of the final rule 
     that such a collection of information requirement cannot be 
     approved under the standards set forth in section 3508, after 
     reviewing the agency's response to the comments of the 
     Director filed under paragraph (2) of this subsection; or
       ``(D) disapproving any collection of information 
     requirement, if the Director determines that the agency has 
     substantially modified, in the final rule, the collection of 
     information requirement contained in the proposed rule and 
     the agency has not given the Director the information 
     required under paragraph (1) with respect to the modified 
     collection of information requirement, at least 60 days 
     before the issuance of the final rule.
       ``(6) The Director shall make publicly available any 
     decision to disapprove a collection of information 
     requirement contained in an agency rule, together with the 
     reasons for such decision.
       ``(7) The authority of the Director under this subsection 
     is subject to subsection (c).
       ``(8) This subsection shall apply only when an agency 
     publishes a notice of proposed rulemaking and requests public 
     comments.
       ``(9) The decision of the Director to approve or not to act 
     upon a collection of information requirement contained in an 
     agency rule shall not be subject to judicial review.
       ``(j)(1) If the head of the agency, or the senior official 
     designated under section 3506(b)(1), decides to seek 
     extension of the Director's approval granted for a currently 
     approved collection of information requirement, the agency 
     shall, through the notice prescribed in subsection (a)(2)(B) 
     and such other practicable steps as may be reasonable, seek 
     comment from the agencies, and the public on the continued 
     need for, and burden imposed by, the collection of 
     information requirement.
       ``(2) The agency, after having made a reasonable effort to 
     seek comment under paragraph (1), but no later than 60 days 
     before the expiration date of the control number assigned by 
     the Director for the currently approved collection of 
     information requirement, shall--
       ``(A) evaluate the public comments received;
       ``(B) conduct the review established under section 3506(e); 
     and
       ``(C) provide to the Director the certification required by 
     section 3506(f), including the text of the certification and 
     any additional relevant information regarding how the 
     collection of information requirement comports with the 
     principles and requirements of this chapter.
       ``(3) Upon receipt of such certification, and prior to the 
     expiration date of the control 
     [[Page H2616]] number for that collection of information 
     requirement, the Director shall--
       ``(A) ensure that the agency has taken the actions 
     specified in section 3506(f)(2);
       ``(B) evaluate the public comments received by the agency 
     or by the Director;
       ``(C) determine whether the agency certification complies 
     with the standards under section 3506(f)(1); and
       ``(D) approve or disapprove the collection of information 
     requirement under this chapter.
       ``(4) If under the provisions of paragraph (3), the 
     Director disapproves a collection of information requirement, 
     or recommends or instructs the agency to make a substantive 
     or material change to a collection of information 
     requirement, the Director shall--
       ``(A) publish an explanation thereof in the Federal 
     Register; and
       ``(B) instruct the agency to undertake a rulemaking within 
     a reasonable time limited to consideration of changes to the 
     collection of information requirement and thereafter to 
     submit the collection of information requirement for approval 
     or disapproval under this chapter.
       ``(5) Nothing in this subsection affects the review process 
     for a collection of information requirement contained in a 
     proposed rule, including a proposed change to an existing 
     collection of information requirement, under subsection (i) 
     with respect to such collection of information requirement.
       ``(6) The Director may not approve a collection of 
     information requirement for a period in excess of 3 years.''.
     SEC. 5305. PROTECTION FOR WHISTLEBLOWERS OF UNAUTHORIZED 
                   PAPERWORK BURDEN.

       Section 3507(h) of title 44, United States Code, is amended 
     in the second sentence by inserting before the period ``, and 
     any communication relating to a collection of information, 
     the disclosure of which could lead to retaliation or 
     discrimination against the communicator''.

     SEC. 5306. ENHANCING PUBLIC PARTICIPATION.

       Section 3517 of title 44, United States Code, is amended--
       (1) by inserting ``(a)'' before ``In development''; and
       (2) by adding at the end thereof:
       ``(b)(1) Under procedures established by the Director, a 
     person may request the Director to review any collection of 
     information conducted by or for an agency to determine, if--
       ``(A) the collection of information is subject to the 
     requirements of this chapter;
       ``(B) the collection of information has been approved in 
     conformity with this chapter; and
       ``(C) the person that is to respond to the collection of 
     information is entitled to the public protections afforded by 
     this chapter.
       ``(2) Any review requested under paragraph (1), unless the 
     request is determined frivolous or does not on its face state 
     a valid basis for such review, shall--
       ``(A) be completed by the Director within 60 days after 
     receiving the request, unless such period is extended by the 
     Director to a specified date and the person making the 
     request is given notice of such extension;
       ``(B)(i) be coordinated with the agency responsible for the 
     collection of information to which the request relates; and
       ``(ii) be coordinated with the Administrator for Federal 
     Procurement Policy, if the request relates to a collection of 
     information applicable to an actual or prospective Federal 
     contractor or subcontractor at any tier; and
       ``(C) result in a written determination by the Director, 
     that shall be--
       ``(i) furnished to the person making the request; and
       ``(ii) made available to the public upon request (and 
     listed and summarized in the annual report required under 
     section 3514), unless confidentiality is requested by the 
     person making the request.''.

     SEC. 5307. EXPEDITING REVIEW OF AN AGENCY INFORMATION 
                   COLLECTION REQUEST WITH A REDUCED BURDEN.

       Section 3507 of title 44, United States Code (as amended by 
     section 5304(b) of this title) is further amended by adding 
     at the end thereof the following new subsection:
       ``(k) Upon request by the head of an agency, the Director 
     shall approve a proposed change to an existing information 
     collection request (unless such proposed change is subject to 
     subsection (i)) within 30 days after the Director receives 
     the proposed change. The information collection request shall 
     thereafter remain in effect at least for the remainder of the 
     period for which it was previously approved by the Director, 
     if--
       ``(1) the information collection request has a current 
     control number; and
       ``(2) the Director determines that the revision--
       ``(A) reduces the burden resulting from the information 
     collection request; and
       ``(B) does not substantially change the information 
     collection request.''.
      Subtitle D--Enhancing Agency Responsibility for Sharing and 
                    Disseminating Public Information

     SEC. 5401. PRESCRIBING GOVERNMENTWIDE STANDARDS FOR SHARING 
                   AND DISSEMINATING PUBLIC INFORMATION.

       Section 3504(h) of title 44, United States Code, is amended 
     to read as follows:
       ``(h) The functions of the Director related to agency 
     dissemination and sharing of public information shall 
     include--
       ``(1) developing policies and practices for agency 
     dissemination and sharing of public information consistent 
     with the agency responsibilities under section 3506(g); and
       ``(2) developing policy guidelines that instruct Federal 
     agencies on ways to fulfill agency responsibilities to 
     disseminate and share information that, to the extent 
     appropriate and practicable--
       ``(A) make information dissemination products available on 
     timely, equitable and cost effective terms;
       ``(B) encourage a diversity of public and private 
     information dissemination products;
       ``(C) avoid establishing, or permitting others to 
     establish, exclusive, restricted, or other distribution 
     arrangements that interfere with the availability of 
     information dissemination products on a timely and equitable 
     basis; and
       ``(D) avoid establishing restrictions or regulations, 
     including the charging of fees or royalties, on the reuse, 
     resale, or redissemination of Federal information 
     dissemination products by the public; and
       ``(E) set user charges for information dissemination 
     products at a level sufficient to recover the cost of 
     dissemination, except--
       ``(i) where otherwise required by statute;
       ``(ii) where the information is collected, processed, and 
     disseminated for the benefit of a specific identifiable group 
     beyond the benefit to the general public; or
       ``(iii) where user charges are established at less than 
     cost of dissemination because of a determination that higher 
     charges would interfere with the proper performance of the 
     agency's functions.''.

     SEC. 5402. AGENCY RESPONSIBILITIES FOR SHARING AND 
                   DISSEMINATING PUBLIC INFORMATION.

       Section 3506 of title 44, United States Code, is amended by 
     adding at the end thereof the following new subsection:
       ``(g) The head of each agency shall, to the extent 
     appropriate and practicable, and in conformance with the 
     policy guidelines established under section 3504(h), 
     establish and maintain a management system for the 
     dissemination and sharing of information that--
       ``(1) ensures that the public has timely, equitable and 
     cost-effective access to the agency's information 
     dissemination products;
       ``(2) disseminates and shares information in a manner that 
     achieves the best balance between maximizing the usefulness 
     of the information and minimizing the cost to the Government 
     and the public;
       ``(3) takes advantage of all appropriate channels, Federal 
     and non-Federal, including State and local governments, 
     libraries and private sector entities, in discharging agency 
     responsibilities for the dissemination and sharing of 
     information;
       ``(4) considers whether an information dissemination 
     product available from other Federal or non-Federal sources 
     is equivalent to an agency information dissemination product 
     and reasonably achieves the objectives of the agency;
       ``(5) establishes and maintains inventories of all agency 
     information dissemination products in conformance with the 
     requirements of section 3511;
       ``(6) establishes and maintains communications with members 
     of the public and with State and local governments so that 
     the agency shares information and otherwise creates 
     information dissemination products that meet their respective 
     needs; and
       ``(7) provides adequate notice when initiating, 
     substantially modifying, or terminating significant 
     information dissemination products.''.

     SEC. 5403. AGENCY INFORMATION INVENTORY/LOCATOR SYSTEM.

       (a) In General.--Section 3511 of title 44, United States 
     Code, is amended to read as follows:
     ``Sec. 3511. Inventory systems of information dissemination 
       products

       ``(a) Each agency having significant information 
     dissemination products shall establish and maintain a 
     comprehensive inventory of such products, which shall 
     include, at a minimum, the title of each such product, an 
     abstract of the contents of each product, the media in which 
     each product is available, and the cost, if any, of each 
     product, subject to any requirements promulgated pursuant to 
     subsection (c).
       ``(b) The inventory created pursuant to subsection (a) 
     shall be made available for public access by electronic 
     means, and in such other media as are appropriate and 
     practicable, at no charge to the public.
       ``(c) The Director, in consultation with the Secretary of 
     Commerce, the Archivist of the United States, the Public 
     Printer, and the Librarian of Congress, may establish a 
     mechanism for developing technical standards and other 
     minimum requirements for the agency inventory systems created 
     under subsection (a).''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 35 of title 44, United States Code, is 
     amended by amending the item relating to section 3511 to read 
     as follows:

``3511. Inventory systems of information dissemination products.''.
Subtitle E--Additional Government Information Management Responsibility

     SEC. 5501. STRENGTHENING THE STATISTICAL POLICY AND 
                   COORDINATION FUNCTIONS OF THE DIRECTOR.

       Section 3504(d) of title 44, United States Code, is amended 
     to read as follows:
       ``(d)(1) The statistical policy and coordination functions 
     of the Director shall include--
     [[Page H2617]]   ``(A) coordinating and providing leadership 
     for development of the Federal statistical system;
       ``(B) developing and periodically reviewing and, as 
     necessary, revising long-range plans for the improved 
     coordination and performance of the statistical activities 
     and programs of the Federal Government;
       ``(C) ensuring the integrity, objectivity, impartiality and 
     confidentiality of the Federal statistical system;
       ``(D) reviewing budget proposals of agencies to ensure that 
     the proposals are consistent with such long-range plans and 
     developing a summary and analysis of the budget submitted by 
     the President to the Congress for each fiscal year of the 
     allocation for all statistical activities;
       ``(E) coordinating, through the review of budget proposals 
     and as otherwise provided under this chapter, the functions 
     of the Federal Government with respect to gathering, 
     interpreting and sharing statistics and statistical 
     information;
       ``(F) developing and implementing governmentwide policies, 
     principles, standards and guidelines concerning statistical 
     collection procedures and methods, statistical data 
     classification, statistical information presentation and 
     sharing, and such statistical data sources as may be required 
     for the administration of Federal programs;
       ``(G) evaluating statistical program performance and agency 
     compliance with governmentwide policies, principles, 
     standards and guidelines;
       ``(H) promoting the timely release by agencies of 
     statistical data to the public;
       ``(I) coordinating the participation of the United States 
     in international statistical activities;
       ``(J) preparing an annual report to submit to the Congress 
     on the statistical policy and coordination function;
       ``(K) integrating the functions described under this 
     paragraph with the other information resources management 
     functions specified under this chapter; and
       ``(L) appointing a chief statistician who is a trained and 
     experienced professional to carry out the functions described 
     under this paragraph.
       ``(2) The Director shall establish an interagency working 
     group on statistical policy, consisting of the heads of the 
     agencies with major statistical programs, headed by the chief 
     statistician to coordinate agency activities in carrying out 
     the functions under paragraph (1).
       ``(3) The Director shall provide opportunities for long-
     term training in the statistical policy functions of the 
     chief statistician to employees of the Federal Government. 
     Each trainee shall be selected at the discretion of the 
     Director based on agency requests and shall serve for at 
     least 6 months and no more than 1 year. All costs of the 
     training are to be paid by the agency requesting training.''.
     SEC. 5502. USE OF ELECTRONIC INFORMATION COLLECTION AND 
                   DISSEMINATION TECHNIQUES TO REDUCE BURDEN.

       Section 3504(g)(1) of title 44, United States Code, is 
     amended--
       (1) by inserting ``development and'' after ``overseeing 
     the''; and
       (2) by inserting ``(including standards that improve the 
     ability of agencies to use technology to reduce burden)'' 
     after ``establishment of standards''.

     SEC. 5503. AGENCY IMPLEMENTATION.

       Section 3514(a) of title 44, United States Code, is 
     amended--
       (1) in paragraph (9)(C) by striking out ``and'' at the end 
     thereof;
       (2) in paragraph (10)(C) by striking out the period and 
     inserting in lieu thereof a semicolon; and
       (3) by adding at the end thereof the following new 
     paragraphs:
       ``(11) a listing of any increase in the burden imposed on 
     the public during the year covered by the report resulting 
     from a collection of information conducted or sponsored by or 
     for an agency, which was imposed by such agency--
       ``(A) as specifically mandated by the provision of a 
     statute; or
       ``(B) as necessary to implement a statutory requirement, 
     which requirement shall be identified with particularity;
       ``(12) a description of each such agency's efforts in 
     implementing, and plans to implement, the applicable 
     policies, standards and guidelines with respect to the 
     functions under this chapter; and
       ``(13) a strategic information resources management plan 
     for the Federal Government, developed in consultation with 
     the Administrator of General Services, the Secretary of 
     Commerce, and the Archivist of the United States, that 
     includes an analysis of cross-cutting issues of 
     governmentwide importance.''.

     SEC. 5504. AUTOMATIC DATA PROCESSING EQUIPMENT PLAN.

       Section 3504(g) of title 44, United States Code, is 
     amended--
       (1) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), and (6), respectively; and
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) developing and annually revising, in consultation 
     with the Administrator of General Services, a 5-year plan for 
     meeting the automatic data processing equipment (including 
     telecommunications) and other information technology needs of 
     the Federal Government in accordance with the requirements of 
     sections 110 and 111 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 757 and 759) 
     and the purposes of this chapter;''.

     SEC. 5505. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Definitions.--Section 3502(10) of title 44, United 
     States Code, is amended by striking out ``the Federal Housing 
     Finance Board'' and inserting in lieu thereof ``Federal 
     Housing Finance Board''.
       (b) Review Periods.--Section 3507(g)(1) of title 44, United 
     States Code, is amended to read as follows: ``(1) is needed 
     prior to the expiration of the time periods for public notice 
     and review by the Director pursuant to the requirements of 
     this chapter,''.
       (c) Director Review.--Section 3513(a) of title 44, United 
     States Code, is amended in the first sentence by inserting 
     ``resources'' after ``information''.
       (d) Responsiveness.--Section 3514(a) of title 44, United 
     States Code, is amended--
       (1) in paragraph (9)(A) by inserting ``and'' at the end 
     thereof;
       (2) in paragraph (9)(B) by striking out the semicolon and 
     inserting a period; and
       (3) by striking out paragraph (9)(C).
                      Subtitle F--Effective Dates

     SEC. 5601. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), the 
     provisions of this title shall become effective 120 days 
     after the date of the enactment of this Act.
       (b) In Particular.--section 5101 and this section shall 
     become effective upon the date of the enactment of this Act.
             TITLE VI--STRENGTHENING REGULATORY FLEXIBILITY

     SEC. 6001. JUDICIAL REVIEW.

       (a) In General.--Section 611 of title 5, United States 
     Code, is repealed.
       (b) Conforming Amendment.--The table of sections at the 
     beginning of chapter 6 of title 5, United States Code, is 
     amended by striking the item relating to section 611.

     SEC. 6002. CONSIDERATION OF DIRECT AND INDIRECT EFFECTS OF 
                   RULES.

       (a) In General.--Title 5, United States Code, is amended by 
     inserting after section 610 the following new section:

     ``Sec. 611. Consideration of direct and indirect effects of 
       rules

       ``In determining under this chapter whether or not a rule 
     is likely to have a significant impact on a substantial 
     number of small entities, an agency shall consider both the 
     direct and indirect effects of the rule.''.
       (b) Conforming Amendment.--The table of sections at the 
     beginning of chapter 6 of title 5, United States Code, is 
     amended by inserting after the item relating to section 610 
     the following:

``611. Consideration of direct and indirect effects of rules.''.
     SEC. 6003. RULES OPPOSED BY SBA CHIEF COUNSEL FOR ADVOCACY.

       (a) In General.--Section 612 of title 5, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d) Statement of Opposition.--
       ``(1) Transmittal of proposed rules and initial regulatory 
     flexibility analysis to sba chief counsel for advocacy.--On 
     or before the 30th day preceding the date of publication by 
     an agency of general notice of proposed rulemaking for a 
     rule, the agency shall transmit to the Chief Counsel for 
     Advocacy of the Small Business Administration--
       ``(A) a copy of the proposed rule; and
       ``(B)(i) a copy of the initial regulatory flexibility 
     analysis for the rule if required under section 603; or
       ``(ii) a determination by the agency that an initial 
     regulatory flexibility analysis is not required for the 
     proposed rule under section 603 and an explanation for the 
     determination.
       ``(2) Statement of opposition.--On or before the 15th day 
     following receipt of a proposed rule and initial regulatory 
     flexibility analysis from an agency under paragraph (1), the 
     Chief Counsel for Advocacy may transmit to the agency a 
     written statement of opposition of the proposed rule.
       ``(3) Response.--If the Chief Counsel for Advocacy 
     transmits to an agency a statement of opposition to a 
     proposed rule in accordance with paragraph (2), the agency 
     shall publish the statement, together with the response of 
     the agency to the statement, in the Federal Register at the 
     time of publication of general notice of proposed rulemaking 
     for the rule.''.
       (b) Conforming Amendment.--Section 603(a) of title 5, 
     United States Code, is amended by inserting ``in accordance 
     with section 612(d)'' before the period at the end of the 
     last sentence.
     SEC. 6004. SENSE OF CONGRESS REGARDING SBA CHIEF COUNSEL FOR 
                   ADVOCACY.

       It is the sense of Congress that the Chief Counsel for 
     Advocacy of the Small Business Administration should be 
     permitted to appear as amicus curiae in any action or case 
     brought in a court of the United States for the purpose of 
     reviewing a rule.
                 TITLE VII--REGULATORY IMPACT ANALYSES

     SEC. 7001. SHORT TITLE.

       This title may be cited as the ``Administrative Procedure 
     Reform Act of 1995''.

     SEC. 7002. RULE MAKING NOTICES FOR MAJOR RULES.

       Section 553 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(f)(1)(A) The head of an agency shall publish in the 
     Federal Register, at least 90 days before the date of 
     publication of general notice under subsection (b) for a 
     proposed 
     [[Page H2618]] major rule, a notice of intent to engage in 
     rule making.
       ``(B) A notice under subparagraph (A) for a proposed major 
     rule shall include, to the extent possible, the information 
     required to be included in a Regulatory Impact Analysis for 
     the rule under section 7004(c) (1), (2), and (8) of the 
     Administrative Procedure Reform Act of 1995.
       ``(2) The head of an agency shall include in a general 
     notice under subsection (b) for a major rule proposed by the 
     agency--
       ``(A) a final Regulatory Impact Analysis for the rule 
     prepared in accordance with section 7004 of the 
     Administrative Procedure Reform Act of 1995; and
       ``(B) clear delineation of all changes in the information 
     included in the final Regulatory Impact Analysis under 
     section 7004(c)(1) and (2) of the Administrative Procedure 
     Reform Act of 1995 from any such information that was 
     included in the notice for the rule under paragraph (1)(B) of 
     this subsection.
       ``(3) In this subsection, the term `major rule' has the 
     meaning given that term in section 7004(b) of the 
     Administrative Procedure Reform Act of 1995.''.
     SEC. 7003. HEARING REQUIREMENT FOR PROPOSED RULES; EXTENSION 
                   OF COMMENT PERIOD.
       (a) Hearing Requirement.--Section 553 of title 5, United 
     States Code, is further amended--
       (1) in subsection (b), in the matter following paragraph 
     (3), by inserting ``(except subsection (g))'' after ``this 
     subsection''; and
       (2) by adding after subsection (f) (as added by section 
     7002 of this title) the following:
       ``(g) If more than 100 interested persons acting 
     individually submit comments to an agency regarding any rule 
     proposed by the agency, the agency shall hold a public 
     hearing on the proposed rule.''.
       (b) Extension of Comment Period.--Section 553 of title 5, 
     United States Code, is further amended by adding after 
     subsection (g) (as added by subsection (a)(2) of this 
     section) the following:
       ``(h) If during the 30-day period beginning on the date of 
     publication of notice under subsection (f)(1)(A) for a 
     proposed major rule, or if during the 30-day period beginning 
     on the date of publication or service of notice required by 
     subsection (b) for a proposed rule, more than 100 persons 
     individually contact the agency to request an extension of 
     the period for making submissions under subsection (c) 
     pursuant to the notice, the agency--
       ``(1) shall provide an additional 30-day period for making 
     those submissions; and
       ``(2) may not adopt the rule until after that additional 
     period.''.
       (c) Response to Comments.--Section 553(c) of title 5, 
     United States Code, is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following:
       ``(2) The head of an agency shall publish in the Federal 
     Register with each rule published under section 552(a)(1)(D) 
     of this title, responses to the substance of the comments 
     received by the agency regarding the rule.''.

     SEC. 7004. REGULATORY IMPACT ANALYSIS.

       (a) Application of Executive Order as Statutory 
     Requirement.--Except as otherwise provided in this section, 
     Executive Order 12291 (relating to Federal regulation 
     requirements and regulatory impact analysis), as in effect on 
     September 29, 1993, shall apply to each agency in accordance 
     with the provisions of the Order.
       (b) Definition of Major Rule in Order.--Notwithstanding 
     section 1(b) of the Order, for purposes of subsection (a) of 
     this section, the term ``major rule'' means any proposed 
     rulemaking--
       (1) which affects more than 100 persons; or
       (2) compliance with which will require the expenditure of 
     more than $1,000,000 by any single person which is not a 
     Federal agency.
       (c) Contents of Regulatory Impact Analyses.--In lieu of the 
     information specified in section 3(d) of the Order, each 
     preliminary and final Regulatory Impact Analysis required 
     under section 3 of the Order for a rule shall contain the 
     following:
       (1) An explanation of the necessity, appropriateness and 
     reasonableness of the rule.
       (2) A description of the current condition that the rule 
     will address and how that condition will be affected by the 
     rule.
       (3) A statement that the rule does not conflict with nor 
     duplicate any other rule, or an explanation of why the 
     conflict or duplication exists.
       (4) A statement of whether the rule is in accord with or in 
     conflict with any legal precedent.
       (5) A statement of the factual, scientific, or technical 
     basis for the agency's determination that the rule will 
     accomplish its intended purpose.
       (6) A statement that describes and, to the extent 
     practicable, quantifies the risks to human health or the 
     environment to be addressed by the rule.
       (7) A demonstration that the rule provides the least costly 
     or least intrusive approach for meeting its intended purpose.
       (8) A description of any alternative approaches considered 
     by the agency or suggested by interested persons and the 
     reasons for their rejection.
       (9) An estimate of the nature and number of persons to be 
     regulated or affected by the rule.
       (10) An estimate of the economic costs of the rule, 
     including those incurred by persons in complying with the 
     rule.
       (11) An evaluation of the costs versus the benefits derived 
     from the rule, including evaluation of how those benefits 
     outweigh the cost.
       (12) Whether the rule will require onsite inspections.
       (13) An estimate of the paperwork burden on persons 
     regulated or affected by the rule, such as the number of 
     forms, impact statements, surveys, and other documents 
     required to be completed by the person under the rule.
       (14) Whether persons will be required by the rule to 
     maintain any records which will be subject to inspection.
       (15) Whether persons will be required by the rule to obtain 
     licenses, permits, or other certifications, and the fees and 
     fines associated therewith.
       (16) Whether persons will be required by the rule to appear 
     before the agency.
       (17) Whether persons will be required by the rule to 
     disclose information on materials or processes, including 
     trade secrets.
       (18) Whether persons will be required by the rule to report 
     any particular type of incidents.
       (19) Whether persons will be required by the rule to adhere 
     to design or performance standards.
       (20) Whether persons may need to retain or utilize any 
     lawyer, accountant, engineer, or other professional 
     consultant in order to comply with the regulations.
       (21) An estimate of the costs to the agency for 
     implementation and enforcement of the regulations.
       (22) Whether the agency can be reasonably expected to 
     implement the rule with the current level of appropriations.
       (23) A statement that any person may submit comments on the 
     Regulatory Impact Analysis to the Administrator of the Office 
     of Information and Regulatory Affairs.
       The requirements of this section shall be consistent with, 
     and not duplicative of, the requirements of section 3201.
       (d) Definitions.--In this section--
       (1) the term ``Order'' means Executive Order 12291, as in 
     effect on September 29, 1993; and
       (2) each of the terms ``agency'', ``regulation'', and 
     ``rule'' has the meaning given that term in section 1 of the 
     Order, except that the term ``agency'' includes an 
     independent agency.

     SEC. 7005. ADDITIONAL RESPONSIBILITIES OF DIRECTOR OF THE 
                   OFFICE OF MANAGEMENT AND BUDGET.

       An agency may not adopt a major rule unless the final 
     Regulatory Impact Analysis for the rule is approved in 
     writing by the Director of the Office of Management and 
     Budget or by an individual designated by the Director for 
     that purpose.

     SEC. 7006. STANDARD OF CLARITY.

       To the extent practicable, the head of an agency may not 
     publish in the Federal Register any proposed major rule, 
     summary of a proposed major rule, or Regulatory Impact 
     Analysis unless the Director of the Office of Management and 
     Budget certifies that the proposed major rule, summary, or 
     Analysis--
       (1) is written in a reasonably simple and understandable 
     manner and is easily readable;
       (2) is written to provide adequate notice of the content of 
     the rule, summary, or Analysis to affected persons and 
     interested persons that have some subject matter expertise;
       (3) conforms to commonly accepted principles of grammar;
       (4) contains only sentences that are as short as practical 
     and organized in a sensible manner; and
       (5) to the extent practicable, does not contain any double 
     negatives, confusing cross references, convoluted phrasing, 
     unreasonably complex language, or term of art or word with 
     multiple meanings that may be misinterpreted and is not 
     defined in the rule, summary, or analysis, respectively.
     SEC. 7007. REPORT BY OIRA.

       The Director of the Office of Management and Budget shall 
     submit a report to the Congress no later than 24 months after 
     the date of the enactment of this Act containing an analysis 
     of rule making procedures of Federal agencies and an analysis 
     of the impact of those rule making procedures on the 
     regulated public and regulatory process.

     SEC. 7008. DEFINITIONS.

       For purposes of this title--
       (1) except as provided in section 7004(d)(2), each of the 
     terms ``agency'', ``rule'', and ``rule making'' has the 
     meaning given that term in section 551 of title 5, United 
     States Code; and
       (2) the term ``major rule'' has the meaning given that term 
     in section 7004(b).
        TITLE VIII--PROTECTION AGAINST FEDERAL REGULATORY ABUSE
            Subtitle A--Citizens' Regulatory Bill of Rights
     SEC. 8101. CITIZENS' REGULATORY BILL OF RIGHTS.

       (a) In General.--Except as provided in subsection (c), each 
     person that is the target of a Federal investigative or 
     enforcement action shall, upon the initiation of an 
     inspection, investigation, or other official proceeding 
     directed against that person, have the right--
       (1) to remain silent;
       (2) to be advised as to whether the person has a right to a 
     warrant;
       (3) to be warned that statements can be used against them;
       (4) to have an attorney or accountant present;
     [[Page H2619]]   (5) to be informed as the the scope and 
     purpose of the agency action;
       (6) to be present at the inspection, investigation, or 
     proceeding;
       (7) to be reimbursed for unreasonable damages;
       (8) to be free of unreasonable seizures of property or 
     assets; and
       (9) to receive attorneys fees and other expenses from the 
     Government when the Government commences a frivolous civil 
     action against such person, except that nothing in this 
     paragraph shall be construed to affect the Equal Access to 
     Justice Act.
       (b) Agency Rules.--Each agency or other authority of the 
     Federal Government with respect to which this section applies 
     shall make appropriate rules within 90 days after the date of 
     the enactment of this Act to implement this section in the 
     context of that agency's functions.
       (c) Limitation on Application of Requirements.--A 
     requirement of this section shall not apply if compliance 
     with the requirement would--
       (1) substantially delay responding to an imminent danger to 
     person or property; or
       (2) substantially or unreasonably impede a criminal 
     investigation.
         Subtitle B--Private Sector Whistleblowers' Protection

     SEC. 8201. SHORT TITLE.

       This subtitle may be cited as the ``Private Sector 
     Whistleblowers' Protection Act of 1995''.

     SEC. 8202. PURPOSE.

       The Federal regulatory system should be implemented 
     consistent with the principle that any person subject to 
     Government regulation should be protected against reprisal 
     for disclosing information that the person believes is 
     indicative of--
       (1) violation or inconsistent application of any law, rule, 
     regulation, policy, or internal standard;
       (2) arbitrary action or other abuse of authority;
       (3) mismanagement;
       (4) waste or misallocation of resources;
       (5) inconsistent, discriminatory or disproportionate 
     enforcement proceedings;
       (6) endangerment of public health or safety;
       (7) personal favoritism; and
       (8) coercion for partisan political purposes;
     by any agency or its employees.

     SEC. 8203. COVERAGE.

       This subtitle shall apply to:
       (1) Any agency of the Federal Government as defined in 
     section 551 of title 5, United States Code.
       (2) Any agency of a State government that exercises 
     authority under Federal law, or that exercises authority 
     under State law establishing a program approved by a Federal 
     agency as a substitute for or supplement to a program 
     established by Federal law.

     SEC. 8204. PROHIBITED REGULATORY PRACTICES.

       (a) Defined.--For purposes of this subtitle, ``prohibited 
     regulatory practice'' means any action described in 
     subsection (b)(i), (ii), or (iii) of this section.
       (b) Prohibition.--(1) No employee of an Agency who has 
     authority--
       (A) to take or direct other employees to take,
       (B) to recommend, or
       (C) to approve,
     any regulatory action shall--
       (i) take or fail to take, or threaten to take or fail to 
     take,
       (ii) recommend or direct that others take or fail to take, 
     or threaten to so recommend or direct, or
       (iii) approve the taking or failing to take, or threaten to 
     so approve,

     such regulatory action because of any disclosure by a person 
     subject to the action, or by any other person, of information 
     that the person believed indicative of--
       (I) violation or inconsistent application of any law, rule, 
     regulation, policy, or internal standard;
       (II) arbitrary action or other abuse of authority;
       (III) mismanagement;
       (IV) waste or misallocation of resources;
       (V) inconsistent, discriminatory or disproportionate 
     enforcement;
       (VI) endangerment of public health or safety;
       (VII personal favoritism; or
       (VIII) coercion for partisan political purposes;

     by any agency or its employees.
       (2) An action shall be deemed to have been taken, not 
     taken, approved, or recommended because of the disclosure of 
     information within the meaning of paragraph (1) if the 
     disclosure of information was a contributing factor to the 
     decision to take, not to take, to approve, or to recommend.

     SEC. 8205. PROHIBITED REGULATORY PRACTICE AS A DEFENSE TO 
                   AGENCY ACTION.

       (a) In General.--In any administrative or judicial action 
     or proceeding, formal or informal, by an agency to create, 
     apply or enforce any obligation, duty or liability under any 
     law, rule or regulation against any person, the person may 
     assert as a defense that the agency or one or more employees 
     of the agency have engaged in a prohibited regulatory 
     practice with respect to the person or to a related entity in 
     connection with the action or proceeding.
       (b) Compliance.--If the existence of a prohibited 
     regulatory practice is established, the person may be 
     required to comply with the obligation, duty or liability to 
     the extent compliance is required of and enforced against 
     other persons similarly situated, but no penalty, fine, 
     damages, costs or other obligation except compliance shall be 
     imposed on the person.

     SEC. 8206. ENFORCEMENT.

       (a) Civil Penalty.--Any agency, and any employee of an 
     agency, engaging in a prohibited regulatory practice may be 
     assessed a civil penalty of not more than $25,000 for each 
     such practice. In the case of a continuing prohibited 
     regulatory practice, each day that the practice continues 
     shall be deemed a separate practice.
       (b) Procedures.--The President shall, by regulation, 
     establish procedures providing for the administrative 
     enforcement of the requirements of subsection (a) of this 
     section.

     SEC. 8207. CITIZEN SUITS.

       (a) Commencement.--Any person injured or threatened by a 
     prohibited regulatory practice may commence a civil action on 
     his own behalf against any person or agency alleged to have 
     engaged in or threatened to engage in such practice.
       (b) Jurisdiction and Venue.--Any action under subsection 
     (a) of this section shall be brought in the district court 
     for any district in which the alleged prohibited regulatory 
     practice occurred or in which the alleged injury occurred. 
     The district court shall have jurisdiction, without regard to 
     the amount in controversy or the citizenship of the parties, 
     to--
       (1) restrain any agency or person who has engaged or is 
     engaging in any prohibited regulatory practice;
       (2) order the cancellation or remission of any penalty, 
     fine, damages, or other monetary assessment that resulted 
     from a prohibited regulatory practice;
       (3) order the rescission of any settlement that resulted 
     from a prohibited regulatory practice;
       (4) order the issuance of any permit or license that has 
     been denied or delayed as a result of a prohibited regulatory 
     practice;
       (5) order the agency and/or the employee engaging in a 
     prohibited regulatory practice to pay to the injured person 
     such damages as may be necessary to compensate the person for 
     any harm resulting from the practice, including damages for--
       (A) injury to, deterioration of, or destruction of real or 
     personal property;
       (B) loss of profits from idle or underutilized resources, 
     and from business forgone;
       (C) costs incurred, including costs of compliance where 
     appropriate;
       (D) loss in value of a business;
       (E) reasonable legal, consulting and expert witness fees; 
     or
       (F) payments to third parties;
       (6) order the payment of punitive damages, in an amount not 
     to exceed $25,000 for each such prohibited regulatory 
     practice, provided that, in the case of a continuing 
     prohibited regulatory practice, each day that the practice 
     continues shall be deemed a separate practice.

     SEC. 8208. OFFICE OF THE SPECIAL COUNSEL.

       (a) Request for Investigation.--Any person who has reason 
     to believe that any employee of any agency has engaged in a 
     prohibited regulatory practice may request the Special 
     Counsel established by section 1211 of title 5, United States 
     Code, to investigate.
       (b) Powers.--The Special Counsel shall have the same power 
     to investigate prohibited regulatory practices that it has to 
     investigate prohibited personnel practices pursuant to 
     section 1212 of title 5, United States Code.

     SEC. 8209. RELATION TO CRIMINAL INVESTIGATIONS.

       Nothing in this subtitle shall be construed so as 
     substantially or unreasonably to impede a criminal 
     investigation.
     TITLE IX--PRIVATE PROPERTY RIGHTS PROTECTIONS AND COMPENSATION

     SEC. 9001. STATEMENT OF PURPOSE.

       It is the purpose of this title to compensate private 
     property owners with respect to certain actions that are 
     taken by the Federal Government for public purposes and that 
     limit the use of private property by property owners.

     SEC. 9002. COMPENSATION FOR FEDERAL AGENCY INFRINGEMENT OR 
                   DEPRIVATION OF RIGHTS TO PRIVATE PROPERTY.

       (a) Eligibility.--
       (1) In general.--A private property owner is entitled to 
     receive compensation from the United States in accordance 
     with this section for any agency infringement or deprivation 
     of rights to property that is owned by the private property 
     owner.
       (2) Agency infringement or deprivation of rights to 
     property defined.--For purposes of paragraph (1), the term 
     ``agency infringement or deprivation of rights to property'' 
     means a limitation or condition that--
       (A) is imposed by a final agency action on a use of 
     property that would be lawful but for the agency action, and
       (B) results in a reduction in the value of the property 
     equal to ten percent or more.
       (3) Circumstances in which compensation not required.--A 
     private property owner shall not be entitled to receive 
     compensation under this subsection for any of the following:
       (A) A limitation on any action that would constitute a 
     violation of applicable State or local law (including an 
     action that would violate a local zoning ordinance or would 
     constitute a nuisance under any applicable State or local 
     law).
     [[Page H2620]]   (B) A limitation on any use of private 
     property, imposed pursuant to a determination by the 
     President that the use poses or would pose a serious and 
     imminent threat to public health and safety or to the health 
     and safety of workers, or other individuals, lawfully on the 
     property.
       (C) A limitation imposed pursuant to the Federal 
     navigational servitude.
       (4) Limitation on cumulative amount of compensation.--No 
     payment may be made pursuant to this subsection with respect 
     to property if the sum of such payment and all other payments 
     made pursuant to this subsection with respect to the property 
     would exceed the fair market value of the property (as 
     determined at the time of the payment).
       (5) State or local limitations imposed pursuant to federal 
     mandates.--A limitation or condition shall be considered to 
     be a Federal agency infringement or deprivation of rights to 
     property for purposes of paragraph (1) if it is a consequence 
     of a limitation or condition on the use of the property by 
     the private property owner that is imposed by a State or 
     local government pursuant to an agency action that is 
     intended to, or does, bind the State or local government.
       (b) Request for Compensation.--Within 90 days after receipt 
     of notice of an agency action with respect to which 
     compensation is required under subsection (a), a private 
     property owner may submit to the head of the agency a request 
     in writing for compensation under this section.
       (c) Agency Determination and Offer.--
       (1) In general.--Upon receipt of a request for 
     compensation, submitted in accordance with subsection (b), 
     with respect to an agency action affecting private property 
     as described in subsection (a), the head of the agency that 
     took the action shall determine whether the private property 
     owner submitting the request has demonstrated entitlement to 
     compensation under subsection (a). If the head of the agency 
     finds that the private property owner has so demonstrated, 
     the head of the agency shall offer to compensate the private 
     property owner for the reduction in the value of the 
     property, as demonstrated by the private property owner.
       (2) Timing of determination and offer.--The head of an 
     agency shall make the determination and offer, if any, 
     required by paragraph (1) with respect to a request for 
     compensation not later than 180 days after receiving the 
     request.
       (d) Private Property Owners' Response.--A private property 
     owner shall have 60 days after the date of receipt of an 
     offer under subsection (c) to accept or to reject the offer.
       (e) Arbitration.--If the head of an agency determines, 
     under subsection (c), that a private property owner is not 
     entitled to compensation under subsection (a), or
      a private property owner rejects an offer made under 
     subsection (c), the private property owner may submit the 
     matter for arbitration to an arbitrator appointed by the 
     head of the agency from a list of arbitrators submitted by 
     the American Arbitration Association. The arbitrator shall 
     determine whether the request meets the requirements of 
     subsection (a) (if such determination is called for by the 
     submission of the property owner) and shall determine the 
     amount of compensation to which the property owner is 
     entitled under this section, in accordance with subsection 
     (c). The arbitration shall be conducted in accordance with 
     the real estate valuation arbitration rules of that 
     association. For purposes of this section, an arbitration 
     is binding on the head of an agency and the private 
     property owner as to whether the property owner is 
     entitled to compensation under subsection (a) and as to 
     the amount, if any, of compensation owed to the private 
     property owner under this section.
       (f) Payment.--The head of an agency shall pay a private 
     property owner any compensation required under the terms of 
     an offer of the agency head that is accepted by the private 
     property owner in accordance with subsection (d), or under a 
     decision of an arbiter under subsection (e), by not later 
     than 60 days after the date of the acceptance or the date of 
     the issuance of the decision, respectively.
       (g) Nature of Remedy.--
       (1) Prohibition of limitation on other claims.--No 
     provision of this title shall be construed to limit the 
     rights of any person to pursue any claim or cause of action 
     under the Constitution or any other law (including a claim or 
     cause of action concerning personal property).
       (2) Prohibition of use as condition precedent.--Submission 
     of a request for compensation, or receipt of compensation, 
     under this title shall not be a condition precedent for any 
     claim or cause of action under any law.
       (h) Limitation on Double Recovery.--
       (1) Court awards of damages.--Notwithstanding subsection 
     (g), a court may credit a payment made pursuant to subsection 
     (a) for any reduction in the value of property against the 
     amount of damages awarded pursuant to any claim or cause of 
     action, under the Constitution or any other law, that arises 
     from the same reduction in the value of the same property.
       (2) Payments under this title.--The amount awarded pursuant 
     to any claim or cause of action, under the Constitution or 
     any other law, for any reduction in the value of a property 
     shall be credited against the amount of any payment made 
     pursuant to subsection (a) with respect to the same reduction 
     in the value of the same property.
       (i) Source of Payment Funds.--
       (1) Use of agency funds.--Except as provided in paragraphs 
     (2) and (3), and notwithstanding any other provision of law, 
     any payment made pursuant to subsection (a) shall be paid 
     from the annual appropriation of the agency or agencies 
     taking the action for which the payment is required. For the 
     purpose of making such a payment, the head of the agency may 
     transfer or reprogram any funds available to the agency.
       (2) Alternative source of funds.--If the agency taking the 
     action referred to in paragraph (2) or (5) of subsection (a) 
     does not have sufficient funds available to complete the 
     payment required by this section with respect to the action, 
     the Comptroller General of the United States shall identify 
     the most appropriate Federal source of funds to complete the 
     payment and the President shall complete the payment using 
     funds from such source, notwithstanding any other provision 
     of law.
       (3) Land exchange.--In lieu of payment under paragraph (1) 
     or (2), the President may enter into an agreement with the 
     private property owner who is entitled to the compensation 
     for which the payment is required to provide all or part of 
     the compensation by exchanging all or part of the affected 
     private property for property owned by the United States and 
     identified by the President as suitable for such an exchange. 
     The properties transferred as part of such an exchange shall 
     be of equal value, as determined under section 206(d) of the 
     Federal Land Policy and Management Act of 1976 (43 U.S.C. 
     1716(d)).

     SEC. 9003. SEVERABILITY.

       If any provision of this title, or the application thereof 
     to any person or circumstance, is held invalid, the remainder 
     of this title and the application of such provision to other 
     persons and circumstances shall not be affected.
     SEC. 9004. DEFINITIONS.

       For purposes of this title:
       (1) Agency.--The term ``agency'' has the meaning given that 
     term in section 551(1) of title 5, United States Code.
       (2) Agency action.--The term ``agency action'' has the 
     meaning given that term in section 551(13) of title 5, United 
     States Code.
       (3) Fair market value.--Unless stated otherwise, the term 
     ``fair market value of the property'' means the fair market 
     value of property determined as of the date on which the 
     private property owner makes a claim under this title with 
     respect to the property.
       (4) Final agency action.--The term ``final agency action'' 
     means an agency action that is intended to or does bind a 
     private property owner with respect to the use of the 
     property. Such term includes but is not limited to the 
     following:
       (A) Denial of a permit.
       (B) Issuance of a cease and desist order.
       (C) Issuance of a statement under section 7(b)(3) of the 
     Endangered Species Act of 1973 (16 U.S.C. 1536(b)(3)).
       (D) Issuance of a permit with conditions.
       (E) Commencement of a civil or criminal proceeding arising 
     out of failure to secure a permit.
       (5) Private property owner.--The term ``private property 
     owner'' means a person (other than the United States, a 
     department, agency, or instrumentality thereof, or an 
     officer, employee, or agent thereof when acting on behalf of 
     his or her employing authority) that--
       (A) owns property referred to in paragraph (6)(A); or
       (B) holds property referred to in paragraph (6)(B).
       (6) Property.--The term ``property'' means--
       (A) land; and
       (B) the right to use or receive water.
       (7) Reduction in the value of property.--The term 
     ``reduction in the value of property'' means the difference, 
     if greater than zero, between--
       (A) the fair market value of property, as determined based 
     on the value of the property if an agency action referred to 
     in paragraph (2) or (5) of section 9002(a), as the case may 
     be, were not implemented; minus
       (B) the fair market value of property, as determined based 
     on the value of the property if an agency action referred to 
     in paragraph (2) or (5) of section 9002(a), as the case may 
     be, were implemented.
       (8) Use--The term ``use'' means a prior, existing, or 
     potential utilization of property, by the private property 
     owner, which is--
       (A) predictable; and
       (B) consistent with the utilization of property of the same 
     general type or with property usage in the geographic area in 
     which the property is located.
     TITLE X--ESTABLISHMENT OF FEDERAL MANDATE BUDGET COST CONTROL

     SEC. 10001. AMENDMENTS TO THE CONGRESSIONAL BUDGET ACT OF 
                   1974.

       (a) Federal Regulatory Budget Cost Control System.--Title 
     III of the Congressional Budget Act of 1974, as amended by 
     section 4001(a) of this Act, is further amended by adding 
     after part B the following new part:

             ``PART C--FEDERAL MANDATE BUDGET COST CONTROL

     ``SEC. 331. OMB-CBO REPORTS.

       ``(a) OMB-CBO Initial Report.--Within 1 year after the date 
     of enactment of this section, OMB and CBO shall jointly issue 
     a report to the President and each House of Congress that 
     contains the following:
       ``(1) For the first budget year beginning after the 
     issuance of this report, a projection of the aggregate direct 
     cost to States and 
     [[Page H2621]] local governments of complying with all 
     Federal mandates in effect immediately before issuance of the 
     report containing the projection for that budget year of the 
     effect of current-year Federal mandates into the budget year 
     and the outyears based on those mandates.
       ``(2) A calculation of the estimated aggregate direct cost 
     to States and local governments of compliance with all 
     Federal mandates as a percentage of the gross domestic 
     product (GDP).
       ``(3) The estimated marginal cost (measured as a reduction 
     in estimated gross domestic product) to States and local 
     governments of compliance with all Federal mandates in excess 
     of the cap (to be determined under paragraph (5)) allowable 
     for the sixth year following the budget year and subsequent 
     fiscal years.
       ``(4) The effect on the domestic economy of different types 
     of Federal mandates.
       ``(5) The appropriate level of personnel, administrative 
     overhead, and programmatic savings that should be achieved on 
     a fiscal year by fiscal year basis by Federal agencies that 
     issue mandates with direct costs to States and local 
     governments through the reduction of such aggregate costs to 
     States and local governments by 6.5 percent for the budget 
     year (as measured against the aggregate mandate baseline for 
     the first budget year to which this part applies) and by 6.5 
     percent increments for each of the outyears (until the 
     aggregate level of such costs does not exceed 3 percent of 
     the estimated gross domestic product for the same fiscal year 
     as the estimated costs that will be incurred).
       ``(6) Recommendations for budgeting, technical, and 
     estimating changes to improve the Federal mandate budgeting 
     process.
       ``(b) Update Reports.--OMB and CBO shall issue update 
     reports on September 15th of the fifth year beginning after 
     issuance of the initial report and at 5-year intervals 
     thereafter containing all the information required in the 
     initial report, but based upon all Federal mandates in effect 
     immediately before issuance of the most recent update report.
       ``(c) Initial Baseline Report.--Within 30 days after the 
     date of enactment of this section, OMB and CBO shall jointly 
     issue a report to the President and each House of Congress 
     that contains an initial aggregate mandate baseline for the 
     first budget year that begins at least 120 days after that 
     date of enactment. That baseline will be a projection of the 
     aggregate direct cost to States and local governments of 
     complying with all Federal mandates in effect immediately 
     before issuance of the report containing the projection for 
     that budget year of the effect of current-year Federal 
     mandates into the budget year and the outyears based on those 
     mandates.

     ``SEC. 332. AGGREGATE MANDATE BASELINE.

       ``(a) In General.--For the first budget year beginning 
     after the date of enactment of this section and for every 
     other fiscal year thereafter, the aggregate mandate baseline 
     refers to a projection of the aggregate direct cost to States 
     and local governments of complying with all Federal mandates 
     in effect immediately before issuance of the report 
     containing the projection for that budget year of the effect 
     of current-year Federal mandates into the budget year and the 
     outyears based on those mandates. However, in the case of 
     each of the succeeding fiscal years, the baseline shall be 
     adjusted for the estimated growth during that year in the 
     gross domestic product (GDP).
       ``(b) OMB-CBO Aggregate Mandate Baseline Reports.--(1) The 
     first budget year for which there shall be an aggregate 
     mandate baseline shall be the budget year to which the 
     initial OMB-CBO baseline report issued under section 331(c) 
     pertains.
       ``(2) In the case of each budget year after the budget year 
     referred to in paragraph (1), not later than September 15 of 
     the current year, OMB and CBO shall jointly issue a report 
     containing the baseline referred to in subsection (a) for 
     that budget year.

     ``SEC. 333. RECONCILIATION AND ALLOCATIONS.

       ``(a) Reconciliation Directives.--In addition to the 
     requirements of section 310, a concurrent resolution on the 
     budget for any fiscal year shall specify--
       ``(1) changes in laws, regulations, and rules necessary to 
     reduce the aggregate direct cost to States and local 
     governments of complying with all Federal mandates by 6.5 
     percent for the budget year (as measured against the 
     aggregate mandate baseline for the first budget year to which 
     this part applies) and by 6.5 percent increments for each of 
     the outyears (until the aggregate level of such costs does 
     not exceed 3 percent of the estimated gross domestic product 
     for the same fiscal year as the estimated costs that will be 
     incurred) for Federal agencies that issue mandates producing 
     direct costs to States and local governments; and
       ``(2) changes in laws necessary to achieve reductions in 
     the level of personnel and administrative overhead and to 
     achieve programmatic savings for
      the budget year and the outyears for those agencies of the 
     following:
       ``(A) In the first outyear, one-fourth of the percent of 
     reduction in mandate authority from the aggregate mandate 
     base.
       ``(B) In the second outyear, one-third of the percent of 
     reduction in mandate authority from the aggregate mandate 
     base.
       ``(C) In the third, fourth, fifth, and sixth years 
     following the budget year, one-half of the percent of 
     reduction in mandate authority from the aggregate mandate 
     base.

     Section 310(c) shall not apply with respect to directions 
     made under this section.
       ``(b) Allocation of Totals.--(1) The Committees on the 
     Budget of the House of Representatives and the Senate shall 
     each allocate aggregate 2-year mandate authority among each 
     committee of its House and by major functional category for 
     the first budget year beginning after the date of enactment 
     of this section and for the second, fourth, and sixth years 
     following the budget year and then every other year 
     thereafter.
       ``(2) As soon as practicable after receiving an allocation 
     under paragraph (1), each committee shall subdivide its 
     allocation among its subcommittees or among programs over 
     which it has jurisdiction.
       ``(c) Point of Order.--(1) It shall not be in order in the 
     House of Representatives or the Senate to consider any bill 
     or resolution, or amendment thereto, which would cause the 
     appropriate allocation made under subsection (b) for a fiscal 
     year of mandate authority to be exceeded.
       ``(2) Waiver.--The point of order set forth in paragraph 
     (1) may only be waived by the affirmative vote of at least 
     three-fifths of the Members voting, a quorum being present.
       ``(d) Determinations by Budget Committees.--For purposes of 
     this section, the level of mandate authority for a fiscal 
     year shall be determined by the Committee on the Budget of 
     the House of Representatives or the Senate, as the case may 
     be.
       ``(e) Exceeding Allocation Totals.--Whenever any Committee 
     of the House of Representatives exceeds its allocation of 
     aggregate 2-year mandate authority under subsection (b)(1), 
     any Member of the House of Representatives may offer a bill 
     in the House (which shall be highly privileged, unamendable, 
     and debateable for 30 minutes) which shall only prohibit the 
     issuance of mandates by any agency under the jurisdiction of 
     that committee for the fiscal years covered by that 
     allocation until that committee eliminates its breach.

     ``SEC. 334. ANALYSIS OF MANDATES COSTS BY CONGRESSIONAL 
                   BUDGET OFFICE.

       ``CBO shall prepare for each bill or resolution of a public 
     character reported by any committee of the House of 
     Representatives or the Senate (except the Committee on 
     Appropriations of each House), and submit to such committee--
       ``(1) an estimate of the costs which would be incurred by 
     States and local governments in carrying out or complying 
     with such bill or resolution in the fiscal year in which it 
     is to become effective and in each of the 4 fiscal years 
     following such fiscal year, together with the basis of each 
     such estimate; and
       ``(2) a comparison of the estimate of costs described in 
     paragraph (1) with any available estimates of costs made by 
     such committee or by any Federal agency.

     ``SEC. 335. DEFINITIONS.

       ``As used in this part:
       ``(1) The term `CBO' refers to the Director of the 
     Congressional Budget Office.
       ``(2) The term `OMB' refers to the Director of the Office 
     of Management and Budget.
       ``(3) The term `costs' when referring to `mandates' means 
     the direct cost to States and local governments of complying 
     with Federal mandates.
       ``(4) The term `direct costs' means (recognizing that 
     direct costs are not the only costs associated with Federal 
     mandates) all expenditures occurring as a direct result of 
     complying with Federal mandates, except those applying to the 
     military or agency organization, management, and 
     personnel.''.

     SEC. 10002. PRESIDENT'S ANNUAL BUDGET SUBMISSIONS.

       Section 1105(a) of title 31, United States Code, as amended 
     by section 4002 of this Act, is further amended by adding 
     after paragraph (32) the following new paragraph:
       ``(33) a mandate authority budget analysis of the aggregate 
     direct cost to States and local governments of complying with 
     all current and proposed Federal mandates and proposals for 
     complying with section 333 of the Congressional Budget Act of 
     1974 for the budget year and the outyears.''

     SEC. 10003. ESTIMATION AND DISCLOSURE OF COSTS OF FEDERAL 
                   MANDATES.

       (a) Costs to State and Local Governments.--Chapter 6 of 
     title 5, United States Code, popularly known as the 
     ``Regulatory Flexibility Act'', is amended--
       (1) in section 603, as amended by section 4003(2) of this 
     Act, by adding after subsection (d) the following:
       ``(e) Each initial regulatory flexibility analysis for a 
     proposed rule that establishes or implements a new Federal 
     mandate shall also contain a description of the nature and 
     amount of monetary costs that will be incurred by State and 
     local governments in complying with the Federal mandate.''; 
     and
       (2) in section 604(a), as amended by section 4003(3) of 
     this Act--
       (A) in paragraph (3) by striking ``and'' after the 
     semicolon;
       (B) in paragraph (4) by striking the period and inserting 
     ``; and''; and
       (C) by adding after paragraph (4) the following:
       ``(5) in the case of an analysis for a rule that 
     establishes or implements a new Federal mandate, a statement 
     of the nature and amount of monetary costs that will be 
     incurred by State and local governments in complying with the 
     Federal mandate.''.
       (b) Agency Reports.--Each agency that under chapter 6 of 
     title 5, United States Code, prepares an initial regulatory 
     flexibility analysis for a proposed rule that establishes or 
     implements a new Federal mandate shall at the same time 
     submit to each House 
     [[Page H2622]] of Congress and to CBO and OMB a cost estimate 
     and cost/benefit analysis of any new Federal mandate that 
     would have an aggregate direct cost to State and local 
     governments of at least $10,000,000 for any fiscal year.
                    TITLE XI--TAXPAYER DEBT BUY-DOWN

     SEC. 11001. DESIGNATION OF AMOUNTS FOR REDUCTION OF PUBLIC 
                   DEBT.

       (a) In General.--Subchapter A of chapter 61 of the Internal 
     Revenue Code of 1986 (relating to returns and records) is 
     amended by adding at the end the following new part:

          ``PART IX--DESIGNATION FOR REDUCTION OF PUBLIC DEBT
``Sec. 6097. Designation.
     ``SEC. 6097. DESIGNATION.

       ``(a) In General.--Every individual with adjusted income 
     tax liability for any taxable year may designate that a 
     portion of such liability (not to exceed 10 percent thereof) 
     shall be used to reduce the public debt.
       ``(b) Manner and Time of Designation.--A designation under 
     subsection (a) may be made with respect to any taxable year 
     only at the time of filing the return of tax imposed by 
     chapter 1 for the taxable year. The designation shall be made 
     on the first page of the return or on the page bearing the 
     taxpayer's signature.
       ``(c) Adjusted Income Tax Liability.--For purposes of this 
     section, the term `adjusted income tax liability' means 
     income tax liability (as defined in section 6096(b)) reduced 
     by any amount designated under section 6096 (relating to 
     designation of income tax payments to Presidential Election 
     Campaign Fund).''
       (b) Clerical Amendment.--The table of parts for such 
     subchapter A is amended by adding at the end the following 
     new item:

``Part IX. Designation for reduction of public debt.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years ending after the date of the 
     enactment of this Act.

     SEC. 11002. PUBLIC DEBT REDUCTION TRUST FUND.

       (a) In General.--Subchapter A of chapter 98 of the Internal 
     Revenue Code of 1986 (relating to trust fund code) is amended 
     by adding at the end the following section:

     ``SEC. 9512. PUBLIC DEBT REDUCTION TRUST FUND.

       ``(a) Creation of Trust Fund.--There is established in the 
     Treasury of the United States a trust fund to be known as the 
     `Public Debt Reduction Trust Fund', consisting of any amount 
     appropriated or credited to the Trust Fund as provided in 
     this section or section 9602(b).
       ``(b) Transfers to Trust Fund.--There are hereby 
     appropriated to the Public Debt Reduction Trust Fund amounts 
     equivalent to the amounts designated under section 6097 
     (relating to designation for public debt reduction).
       ``(c) Expenditures.--Amounts in the Public Debt Reduction 
     Trust Fund shall be used by the Secretary of the Treasury for 
     purposes of paying at maturity, or to redeem or buy before 
     maturity, any obligation of the Federal Government included 
     in the public debt (other than an obligation held by the 
     Federal Old-Age and Survivors Insurance Trust Fund, the Civil 
     Service Retirement and Disability Fund, or the Department of 
     Defense Military Retirement Fund). Any obligation which is 
     paid, redeemed, or bought with amounts from the Public Debt 
     Reduction Trust Fund shall be canceled and retired and may 
     not be reissued.''
       (b) Clerical Amendment.--The table of sections for such 
     subchapter is amended by adding at the end the following new 
     item:

``Sec. 9512. Public Debt Reduction Trust Fund.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to amounts received after the date of the 
     enactment of this Act.
     SEC. 11003. TAXPAYER-GENERATED SEQUESTRATION OF FEDERAL 
                   SPENDING TO REDUCE THE PUBLIC DEBT.

       (a) Sequestration To Reduce the Public Debt.--Part C of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 is 
     amended by adding after section 253 the following new 
     section:

     ``SEC. 253A. SEQUESTRATION TO REDUCE THE PUBLIC DEBT.

       ``(a) Sequestration.--Notwithstanding sections 255 and 256, 
     within 15 days after Congress adjourns to end a session, and 
     on the same day as sequestration (if any) under sections 251, 
     252, and 253, but after any sequestration required by those 
     sections, there shall be a sequestration equivalent to the 
     estimated aggregate amount designated under section 6097 of 
     the Internal Revenue Code of 1986 for the last taxable year 
     ending one year before the beginning of that session of 
     Congress, as estimated by the Department of the Treasury on 
     October 1 and as modified by the total of (1) any amounts by 
     which net discretionary spending is reduced by legislation 
     below the discretionary spending limits enacted after the 
     enactment of this section related to the fiscal year subject 
     to the sequestration (or, in the absence of such limits, any 
     net deficit change from the baseline amount calculated under 
     section 257 (except that such baseline for fiscal year 1996 
     and thereafter shall be based upon fiscal year 1995 enacted 
     appropriations less any 1995 sequesters)) and (2) the net 
     deficit change that has resulted from all direct spending 
     legislation enacted after the enactment of this section 
     related to the fiscal year subject to the sequestration, as 
     estimated by OMB. If the reduction in spending under 
     paragraphs (1) and (2) for a fiscal year is greater than the 
     estimated aggregate amount designated under section 6097 of 
     the Internal Revenue Code of 1986 respecting that fiscal 
     year, then there shall be no sequestration under this 
     section.
       ``(b) Applicability.--
       ``(1) In general.--Except as provided by paragraph (2), 
     each account of the United States shall be reduced by a 
     dollar amount calculated by multiplying the level of 
     budgetary resources in that account at that time by the 
     uniform percentage necessary to carry out subsection (a). All 
     obligational authority reduced under this section shall be 
     done in a manner that makes such reductions permanent.
       ``(2) Exempt accounts.--No order issued under this part 
     may--
       ``(A) reduce benefits payable the old-age and survivors 
     insurance program established under title II of the Social 
     Security Act;
       ``(B) reduce payments for net interest (all of major 
     functional category 900); or
       ``(C) make any reduction in the following accounts:
       ``Federal Deposit Insurance Corporation, Bank Insurance 
     Fund;
       ``Federal Deposit Insurance Corporation, FSLIC Resolution 
     Fund;
       ``Federal Deposit Insurance Corporation, Savings 
     Association Insurance Fund;
       ``National Credit Union Administration, credit union share 
     insurance fund; or
       ``Resolution Trust Corporation.''
       (b) Reports.--Section 254 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 is amended--
       (1) in subsection (a), by inserting after the item relating 
     to the GAO compliance report the following:
       ``October 1 . . . Department of Treasury report to Congress 
     estimating amount of income tax designated pursuant to 
     section 6097 of the Internal Revenue Code of 1986.'';
       (2) in subsection (d)(1), by inserting ``, and 
     sequestration to reduce the public debt,'';
       (3) in subsection (d), by redesignating paragraph (5) as 
     paragraph (6) and by inserting after paragraph (4) the 
     following new paragraph:
       ``(5) Sequestration to reduce the public debt reports.--The 
     preview reports shall set forth for the budget year estimates 
     for each of the following:
       ``(A) The aggregate amount designated under section 6097 of 
     the Internal Revenue Code of 1986 for the last taxable year 
     ending before the budget year.
       ``(B) The amount of reductions required under section 253A 
     and the deficit remaining after those reductions have been 
     made.
       ``(C) The sequestration percentage necessary to achieve the 
     required reduction in accounts under section 253A(b).''; and
       (4) in subsection (g), by redesignating paragraphs (4) and 
     (5) as paragraphs (5) and (6), respectively, and by inserting 
     after paragraph (3) the following new paragraph:
       ``(4) Sequestration to reduce the public debt reports.--The 
     final reports shall contain all of the information contained 
     in the public debt taxation designation report required on 
     October 1.''.
       (c) Effective Date.--Notwithstanding section 275(b) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, 
     the expiration date set forth in that section shall not apply 
     to the amendments made by this section. The amendments made 
     by this section shall cease to have any effect after the 
     first fiscal year during which there is no public debt.
                  TITLE XII--SMALL BUSINESS INCENTIVES

     SEC. 12001. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDITS.

       (a) Estate Tax Credit.--
       (1) Subsection (a) of section 2010 of the Internal Revenue 
     Code of 1986 (relating to unified credit against estate tax) 
     is amended by striking ``$192,800'' and inserting ``the 
     applicable credit amount''.
       (2) Section 2010 of such Code is amended by redesignating 
     subsection (c) as subsection (d) and by inserting after 
     subsection (b) the following new subsection:
       ``(c) Applicable Credit Amount.--For purposes of this 
     section--
       ``(1) In general.--The applicable credit amount is the 
     amount of the tentative tax which would be determined under 
     the rate schedule set forth in section 2001(c) if the amount 
     with respect to which such tentative tax is to be computed 
     were the applicable exclusion amount determined in accordance 
     with the following table:

``In the case of estates of decedentThe applicable exclusion amount is:
    1996.....................................................$700,000  
    1997.....................................................$725,000  
    1998 or thereafter......................................$750,000.  
       ``(2) Cost-of-living adjustments.--In the case of any 
     decedent dying, and gift made, in a calendar year after 1998, 
     the $750,000 amount set forth in paragraph (1) shall be 
     increased by an amount equal to--
       ``(A) $750,000, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year by substituting 
     `calendar year 1997' for `calendar year 1992' in subparagraph 
     (B) thereof.

     [[Page H2623]] Any increase determined under the preceding 
     sentence shall be rounded to the nearest multiple of 
     $1,000.''
       (3) Paragraph (1) of section 6018(a) of such Code is 
     amended by striking ``$600,000'' and inserting ``the 
     applicable exclusion amount in effect under section 2010(c) 
     (as adjusted under paragraph (2) thereof) for the calendar 
     year which includes the date of death''.
       (4) Paragraph (2) of section 2001(c) of such Code is 
     amended by striking ``$21,040,000'' and inserting ``the 
     amount at which the effective tax rate under this section is 
     55 percent''.
       (5) Subparagraph (A) of section 2102(c)(3) of such Code is 
     amended by striking ``$192,800'' and inserting ``the 
     applicable credit amount in effect under section 2010(c) for 
     the calendar year which includes the date of death''.
       (b) Unified Gift Tax Credit.--Paragraph (1) of section 
     2505(a) of such Code is amended by striking ``$192,800'' and 
     inserting ``the applicable credit amount in effect under 
     section 2010(c) for such calendar year''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to the estates of decedents dying, and gifts 
     made, after December 31, 1995.

     SEC. 12002. INCREASE IN EXPENSE TREATMENT FOR SMALL 
                   BUSINESSES.

       (a) General Rule.--Paragraph (1) of section 179(b) of the 
     Internal Revenue Code of 1986 (relating to dollar limitation) 
     is amended by striking ``$17,500'' and inserting ``$25,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     1995.

     SEC. 12003. CLARIFICATION OF DEFINITION OF PRINCIPAL PLACE OF 
                   BUSINESS.
       (a) In General.--Subsection (f) of section 280A of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), 
     respectively, and by inserting after paragraph (1) the 
     following new paragraph:
       ``(2) Principal place of business.--For purposes of 
     subsection (c), a home office shall in any case qualify as 
     the principal place of business if--
       ``(A) the office is the location where the taxpayer's 
     essential administrative or management activities are 
     conducted on a regular and systematic (and not incidental) 
     basis by the taxpayer, and
       ``(B) the office is necessary because the taxpayer has no 
     other location for the performance of the administrative or 
     management activities of the business.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     1995.

     SEC. 12004. TREATMENT OF STORAGE OF PRODUCT SAMPLES.

       (a) In General.--Paragraph (2) of section 280A(c) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``inventory'' and inserting ``inventory or product samples''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     1995.
                      motion offered by mr. delay

  Mr. DeLAY. Mr. Speaker, I offer a motion.
  The Clerk read as follows:

       Motion offered by Mr. DeLay: Mr. DeLay of Texas moves to 
     strike all after section 1 of the bill and insert a text 
     composed of four divisions as follows: (1) division A, 
     consisting of the text of H.R. 830, as passed by the House; 
     (2) division B, consisting of the text of H.R. 925, as passed 
     by the House; (3) division C, consisting of the text of H.R. 
     926, as passed by the House, and (4) division D, consisting 
     of the text of H.R. 1022, as passed by the House.

  The text of the bills referred to in the foregoing motion; H.R. 830, 
H.R. 925, H.R. 926, and H.R. 1022, is as follows:
                                H.R. 830

       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 ``Paperwork Reduction Act of 
     1995''.

     SEC. 2. COORDINATION OF FEDERAL INFORMATION POLICY.

       Chapter 35 of title 44, United States Code, is amended to 
     read as follows:
        ``CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY
``Sec.
``3501. Purposes.
``3502. Definitions.
``3503. Office of Information and Regulatory Affairs.
``3504. Authority and functions of Director.
``3505. Assignment of tasks and deadlines.
``3506. Federal agency responsibilities.
``3507. Public information collection activities; submission to 
              Director; approval and delegation.
``3508. Determination of necessity for information; hearing.
``3509. Designation of central collection agency.
``3510. Cooperation of agencies in making information available.
``3511. Establishment and operation of Government Information Locator 
              Service.
``3512. Public protection.
``3513. Director review of agency activities; reporting; agency 
              response.
``3514. Responsiveness to Congress.
``3515. Administrative powers.
``3516. Rules and regulations.
``3517. Consultation with other agencies and the public.
``3518. Effect on existing laws and regulations.
``3519. Access to information.
``3520. Authorization of appropriations.
     ``Sec. 3501. Purposes

       ``The purposes of this chapter are to--
       ``(1) minimize the paperwork burden for individuals, small 
     businesses, educational and nonprofit institutions, Federal 
     contractors, State, local and tribal governments, and other 
     persons resulting from the collection of information by or 
     for the Federal Government;
       ``(2) ensure the greatest possible public benefit from and 
     maximize the utility of information created, collected, 
     maintained, used, shared and disseminated by or for the 
     Federal Government;
       ``(3) coordinate, integrate, and to the extent practicable 
     and appropriate, make uniform Federal information resources 
     management policies and practices as a means to improve the 
     productivity, efficiency, and effectiveness of Government 
     programs, including the reduction of information collection 
     burdens on the public and the improvement of service delivery 
     to the public;
       ``(4) improve the quality and use of Federal information to 
     strengthen decisionmaking, accountability, and openness in 
     Government and society;
       ``(5) minimize the cost to the Federal Government of the 
     creation, collection, maintenance, use, dissemination, and 
     disposition of information;
       ``(6) strengthen the partnership between the Federal 
     Government and State, local, and tribal governments by 
     minimizing the burden and maximizing the utility of 
     information created, collected, maintained, used, 
     disseminated, and retained by or for the Federal Government;
       ``(7) provide for the dissemination of public information 
     on a timely basis, on equitable terms, and in a manner that 
     promotes the utility of the information to the public and 
     makes effective use of information technology;
       ``(8) ensure that the creation, collection, maintenance, 
     use, dissemination, and disposition of information by or for 
     the Federal Government is consistent with applicable laws, 
     including laws relating to--
       ``(A) privacy and confidentiality, including section 552a 
     of title 5;
       ``(B) security of information, including the Computer 
     Security Act of 1987 (Public Law 100-235); and
       ``(C) access to information, including section 552 of title 
     5;
       ``(9) ensure the integrity, quality, and utility of the 
     Federal statistical system;
       ``(10) ensure that information technology is acquired, 
     used, and managed to improve performance of agency missions, 
     including the reduction of information collection burdens on 
     the public; and
       ``(11) improve the responsibility and accountability of the 
     Office of Management and Budget and all other Federal 
     agencies to Congress and to the public for implementing the 
     information collection review process, information resources 
     management, and related policies and guidelines established 
     under this chapter.

     ``Sec. 3502. Definitions

       ``As used in this chapter--
       ``(1) the term `agency' means any executive department, 
     military department, Government corporation, Government 
     controlled corporation, or other establishment in the 
     executive branch of the Government (including the Executive 
     Office of the President), or any independent regulatory 
     agency, but does not include--
       ``(A) the General Accounting Office;
       ``(B) Federal Election Commission;
       ``(C) the governments of the District of Columbia and of 
     the territories and possessions of the United States, and 
     their various subdivisions; or
       ``(D) Government-owned contractor-operated facilities, 
     including laboratories engaged in national defense research 
     and production activities;
       ``(2) the term `burden' means time, effort, or financial 
     resources expended by persons to generate, maintain, or 
     provide information to or for a Federal agency, including the 
     resources expended for--
       ``(A) reviewing instructions;
       ``(B) acquiring, installing, and utilizing technology and 
     systems;
       ``(C) adjusting the existing ways to comply with any 
     previously applicable instructions and requirements;
       ``(D) searching data sources;
       ``(E) completing and reviewing the collection of 
     information; and
       ``(F) transmitting, or otherwise disclosing the 
     information;
       ``(3) the term `collection of information' means the 
     obtaining, causing to be obtained, soliciting, or requiring 
     the disclosure to third parties or the public, of facts or 
     opinions by or for an agency, regardless of form or format, 
     calling for either--
       ``(A) answers to identical questions posed to, or identical 
     reporting or recordkeeping requirements imposed on, ten or 
     more persons, other than agencies, instrumentalities, or 
     employees of the United States; or
       ``(B) answers to questions posed to agencies, 
     instrumentalities, or employees of the United States which 
     are to be used for general statistical purposes;
       ``(4) the term `Director' means the Director of the Office 
     of Management and Budget;
     [[Page H2624]]   ``(5) the term `independent regulatory 
     agency' means the Board of Governors of the Federal Reserve 
     System, the Commodity Futures Trading Commission, the 
     Consumer Product Safety Commission, the Federal 
     Communications Commission, the Federal Deposit Insurance 
     Corporation, the Federal Energy Regulatory Commission, the 
     Federal Housing Finance Board, the Federal Maritime 
     Commission, the Federal Trade Commission, the Interstate 
     Commerce Commission, the Mine Enforcement Safety and Health 
     Review Commission, the National Labor Relations Board, the 
     Nuclear Regulatory Commission, the Occupational Safety and 
     Health Review Commission, the Postal Rate Commission, the 
     Securities and Exchange Commission, and any other similar 
     agency designated by statute as a Federal independent 
     regulatory agency or commission;
       ``(6) the term `information resources' means information 
     and related resources, such as personnel, equipment, funds, 
     and information technology;
       ``(7) the term `information resources management' means the 
     process of managing information resources to accomplish 
     agency missions and to improve agency performance, including 
     through the reduction of information collection burdens on 
     the public;
       ``(8) the term `information system' means a discrete set of 
     information resources and processes, automated or manual, 
     organized for the collection, processing, maintenance, use, 
     sharing, dissemination, or disposition of information;
       ``(9) the term `information technology' has the same 
     meaning as the term `automatic data processing equipment' as 
     defined by section 111(a)(2) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759(a)(2));
       ``(10) the term `person' means an individual, partnership, 
     association, corporation, business trust, or legal 
     representative, an organized group of individuals, a State, 
     territorial, or local government or branch thereof, or a 
     political subdivision of a State, territory, or local 
     government or a branch of a political subdivision;
       ``(11) the term `practical utility' means the ability of an 
     agency to use information, particularly the capability to 
     process such information in a timely and useful fashion;
       ``(12) the term `public information' means any information, 
     regardless of form or format, that an agency discloses, 
     disseminates, or makes available to the public; and
       ``(13) the term `recordkeeping requirement' means a 
     requirement imposed by or for an agency on persons to 
     maintain specified records, including a requirement to--
       ``(A) retain such records;
       ``(B) notify third parties or the public of the existence 
     of such records;
       ``(C) disclose such records to third parties or the public; 
     or
       ``(D) report to third parties or the public regarding such 
     records.

     ``Sec. 3503. Office of Information and Regulatory Affairs

       ``(a) There is established in the Office of Management and 
     Budget an office to be known as the Office of Information and 
     Regulatory Affairs.
       ``(b) There shall be at the head of the Office an 
     Administrator who shall be appointed by the President, by and 
     with the advice and consent of the Senate. The Director shall 
     delegate to the Administrator the authority to administer all 
     functions under this chapter, except that any such delegation 
     shall not relieve the Director of responsibility for the 
     administration of such functions. The Administrator shall 
     serve as principal adviser to the Director on Federal 
     information resources management policy.

     ``Sec. 3504. Authority and functions of Director

       ``(a)(1) The Director shall--
       ``(A) develop, coordinate and oversee the implementation of 
     Federal information resources management policies, 
     principles, standards, and guidelines; and
       ``(B) provide direction and oversee--
       ``(i) the review and approval of the collection of 
     information and the reduction of the information collection 
     burden;
       ``(ii) agency dissemination of and public access to 
     information;
       ``(iii) statistical activities;
       ``(iv) records management activities;
       ``(v) privacy, confidentiality, security, disclosure, and 
     sharing of information; and
       ``(vi) the acquisition and use of information technology.
       ``(2) The authority of the Director under this chapter 
     shall be exercised consistent with applicable law.
       ``(b) With respect to general information resources 
     management policy, the Director shall--
       ``(1) develop and oversee the implementation of uniform 
     information resources management policies, principles, 
     standards, and guidelines;
       ``(2) foster greater sharing, dissemination, and access to 
     public information, including through--
       ``(A) the use of the Government Information Locator 
     Service; and
       ``(B) the development and utilization of common standards 
     for information collection, storage, processing and 
     communication, including standards for security, 
     interconnectivity and interoperability;
       ``(3) initiate and review proposals for changes in 
     legislation, regulations, and agency procedures to improve 
     information resources management practices;
       ``(4) oversee the development and implementation of best 
     practices in information resources management, including 
     training; and
       ``(5) oversee agency integration of program and management 
     functions with information resources management functions.
       ``(c) With respect to the collection of information and the 
     control of paperwork, the Director shall--
       ``(1) review and approve proposed agency collections of 
     information;
       ``(2) coordinate the review of the collection of 
     information associated with Federal procurement and 
     acquisition by the Office of Information and Regulatory 
     Affairs with the Office of Federal Procurement Policy, with 
     particular emphasis on applying information technology to 
     improve the efficiency and effectiveness of Federal 
     procurement, acquisition, and payment and to reduce 
     information collection burdens on the public;
       ``(3) minimize the Federal information collection burden, 
     with particular emphasis on those individuals and entities 
     most adversely affected;
       ``(4) maximize the practical utility of and public benefit 
     from information collected by or for the Federal Government;
       ``(5) establish and oversee standards and guidelines by 
     which agencies are to estimate the burden to comply with a 
     proposed collection of information; and
       ``(6) place an emphasis on minimizing the burden on small 
     businesses with 50 or fewer employees.
       ``(d) With respect to information dissemination, the 
     Director shall develop and oversee the implementation of 
     policies, principles, standards, and guidelines to--
       ``(1) apply to Federal agency dissemination of public 
     information, regardless of the form or format in which such 
     information is disseminated; and
       ``(2) promote public access to public information and 
     fulfill the purposes of this chapter, including through the 
     effective use of information technology.
       ``(e) With respect to statistical policy and coordination, 
     the Director shall--
       ``(1) coordinate the activities of the Federal statistical 
     system to ensure--
       ``(A) the efficiency and effectiveness of the system; and
       ``(B) the integrity, objectivity, impartiality, utility, 
     and confidentiality of information collected for statistical 
     purposes;
       ``(2) ensure that budget proposals of agencies are 
     consistent with system-wide priorities for maintaining and 
     improving the quality of Federal statistics and prepare an 
     annual report on statistical program funding;
       ``(3) develop and oversee the implementation of 
     Governmentwide policies, principles, standards, and 
     guidelines concerning--
       ``(A) statistical collection procedures and methods;
       ``(B) statistical data classification;
       ``(C) statistical information presentation and 
     dissemination;
       ``(D) timely release of statistical data; and
       ``(E) such statistical data sources as may be required for 
     the administration of Federal programs;
       ``(4) evaluate statistical program performance and agency 
     compliance with Governmentwide policies, principles, 
     standards and guidelines;
       ``(5) promote the sharing of information collected for 
     statistical purposes consistent with privacy rights and 
     confidentiality pledges;
       ``(6) coordinate the participation of the United States in 
     international statistical activities, including the 
     development of comparable statistics;
       ``(7) appoint a chief statistician who is a trained and 
     experienced professional statistician to carry out the 
     functions described under this subsection;
       ``(8) establish an Interagency Council on Statistical 
     Policy to advise and assist the Director in carrying out the 
     functions under this subsection that shall--
       ``(A) be headed by the chief statistician; and
       ``(B) consist of--
       ``(i) the heads of the major statistical programs; and
       ``(ii) representatives of other statistical agencies under 
     rotating membership; and
       ``(9) provide opportunities for training in statistical 
     policy functions to employees of the Federal Government under 
     which--
       ``(A) each trainee shall be selected at the discretion of 
     the Director based on agency requests and shall serve under 
     the chief statistician for at least 6 months and not more 
     than 1 year; and
       ``(B) all costs of the training shall be paid by the agency 
     requesting training.
       ``(f) With respect to records management, the Director 
     shall--
       ``(1) provide advice and assistance to the Archivist of the 
     United States and the Administrator of General Services to 
     promote coordination in the administration of chapters 29, 
     31, and 33 of this title with the information resources 
     management policies, principles, standards, and guidelines 
     established under this chapter;
       ``(2) review compliance by agencies with--
       ``(A) the requirements of chapters 29, 31, and 33 of this 
     title; and
       ``(B) regulations promulgated by the Archivist of the 
     United States and the Administrator of General Services; and
       ``(3) oversee the application of records management 
     policies, principles, standards, 
     [[Page H2625]] and guidelines, including requirements for 
     archiving information maintained in electronic format, in the 
     planning and design of information systems.
       ``(g) With respect to privacy and security, the Director 
     shall--
       ``(1) develop and oversee the implementation of policies, 
     principles, standards, and guidelines on privacy, 
     confidentiality, security, disclosure and sharing of 
     information collected or maintained by or for agencies;
       ``(2) oversee and coordinate compliance with sections 552 
     and 552a of title 5, the Computer Security Act of 1987 (40 
     U.S.C. 759 note), and related information management laws; 
     and
       ``(3) require Federal agencies, consistent with the 
     Computer Security Act of 1987 (40 U.S.C. 759 note), to 
     identify and afford security protections commensurate with 
     the risk and magnitude of the harm resulting from the loss, 
     misuse, or unauthorized access to or modification of 
     information collected or maintained by or on behalf of an 
     agency.
       ``(h) With respect to Federal information technology, the 
     Director shall--
       ``(1) in consultation with the Director of the National 
     Institute of Standards and Technology and the Administrator 
     of General Services--
       ``(A) develop and oversee the implementation of policies, 
     principles, standards, and guidelines for information 
     technology functions and activities of the Federal 
     Government, including periodic evaluations of major 
     information systems; and
       ``(B) oversee the development and implementation of 
     standards under section 111(d) of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759(d));
       ``(2) monitor the effectiveness of, and compliance with, 
     directives issued under sections 110 and 111 of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     757 and 759);
       ``(3) coordinate the development and review by the Office 
     of Information and Regulatory Affairs of policy associated 
     with Federal procurement and acquisition of information 
     technology with the Office of Federal Procurement Policy;
       ``(4) ensure, through the review of agency budget 
     proposals, information resources management plans and other 
     means--
       ``(A) agency integration of information resources 
     management plans, program plans and budgets for acquisition 
     and use of information technology; and
       ``(B) the efficiency and effectiveness of inter-agency 
     information technology initiatives to improve agency 
     performance and the accomplishment of agency missions; and
       ``(5) promote the use of information technology by the 
     Federal Government to improve the productivity, efficiency, 
     and effectiveness of Federal programs, including through 
     dissemination of public information and the reduction of 
     information collection burdens on the public.

     ``Sec. 3505. Assignment of tasks and deadlines

       ``(a) In carrying out the functions under this chapter, the 
     Director shall--
       ``(1) in consultation with agency heads, set an annual 
     Governmentwide goal for the reduction of information 
     collection burdens by at least 10 percent, and set annual 
     agency goals to--
       ``(A) reduce information collection burdens imposed on the 
     public that--
       ``(i) represent the maximum practicable opportunity in each 
     agency; and
       ``(ii) are consistent with improving agency management of 
     the process for the review of collections of information 
     established under section 3506(c); and
       ``(B) improve information resources management in ways that 
     increase the productivity, efficiency and effectiveness of 
     Federal programs, including service delivery to the public;
       ``(2) with selected agencies and non-Federal entities on a 
     voluntary basis, initiate and conduct pilot projects to test 
     alternative policies, practices, regulations, and procedures 
     to fulfill the purposes of this chapter, particularly with 
     regard to minimizing the Federal information collection 
     burden; and
       ``(3) in consultation with the Administrator of General 
     Services, the Director of the National Institute of Standards 
     and Technology, the Archivist of the United States, and the 
     Director of the Office of Personnel Management, develop and 
     maintain a Governmentwide strategic plan for information 
     resources management, that shall include--
       ``(A) a description of the objectives and the means by 
     which the Federal Government shall apply information 
     resources to improve agency and program performance;
       ``(B) plans for--
       ``(i) reducing information burdens on the public, including 
     reducing such burdens through the elimination of duplication 
     and meeting shared data needs with shared resources;
       ``(ii) enhancing public access to and dissemination of, 
     information, using electronic and other formats; and
       ``(iii) meeting the information technology needs of the 
     Federal Government in accordance with the purposes of this 
     chapter; and
       ``(C) a description of progress in applying information 
     resources management to improve agency performance and the 
     accomplishment of missions.
       ``(b) For purposes of any pilot project conducted under 
     subsection (a)(2), the Director may waive the application of 
     any regulation or administrative directive issued by an 
     agency with which the project is conducted, including any 
     regulation or directive requiring a collection of 
     information, after giving timely notice to the public and the 
     Congress regarding the need for such waiver.

     ``Sec. 3506. Federal agency responsibilities

       ``(a)(1) The head of each agency shall be responsible for--
       ``(A) carrying out the agency's information resources 
     management activities to improve agency productivity, 
     efficiency, and effectiveness; and
       ``(B) complying with the requirements of this chapter and 
     related policies established by the Director.
       ``(2)(A) Except as provided under subparagraph (B), the 
     head of each agency shall designate a senior official
      who shall report directly to such agency head to carry out 
     the responsibilities of the agency under this chapter.
       ``(B) The Secretary of the Department of Defense and the 
     Secretary of each military department may each designate a 
     senior official who shall report directly to such Secretary 
     to carry out the responsibilities of the department under 
     this chapter. If more than one official is designated for the 
     military departments, the respective duties of the officials 
     shall be clearly delineated.
       ``(3) The senior official designated under paragraph (2) 
     shall head an office responsible for ensuring agency 
     compliance with and prompt, efficient, and effective 
     implementation of the information policies and information 
     resources management responsibilities established under this 
     chapter, including the reduction of information collection 
     burdens on the public. The senior official and employees of 
     such office shall be selected with special attention to the 
     professional qualifications required to administer the 
     functions described under this chapter.
       ``(4) Each agency program official shall be responsible and 
     accountable for information resources assigned to and 
     supporting the programs under such official. In consultation 
     with the senior official designated under paragraph (2) and 
     the agency Chief Financial Officer (or comparable official), 
     each agency program official shall define program information 
     needs and develop strategies, systems, and capabilities to 
     meet those needs.
       ``(b) With respect to general information resources 
     management, each agency shall--
       ``(1) manage information resources to--
       ``(A) reduce information collection burdens on the public;
       ``(B) increase program efficiency and effectiveness; and
       ``(C) improve the integrity, quality, and utility of 
     information to all users within and outside the agency, 
     including capabilities for ensuring dissemination of public 
     information, public access to government information, and 
     protections for privacy and security;
       ``(2) in accordance with guidance by the Director, develop 
     and maintain a strategic information resources management 
     plan that shall describe how information resources management 
     activities help accomplish agency missions;
       ``(3) develop and maintain an ongoing process to--
       ``(A) ensure that information resources management 
     operations and decisions are integrated with organizational 
     planning, budget, financial management, human resources 
     management, and program decisions;
       ``(B) in cooperation with the agency Chief Financial 
     Officer (or comparable official), develop a full and accurate 
     accounting of information technology expenditures, related 
     expenses, and results; and
       ``(C) establish goals for improving information resources 
     management's contribution to program productivity, 
     efficiency, and effectiveness, methods for measuring progress 
     towards those goals, and clear roles and responsibilities for 
     achieving those goals;
       ``(4) in consultation with the Director, the Administrator 
     of General Services, and the Archivist of the United States, 
     maintain a current and complete inventory of the agency's 
     information resources, including directories necessary to 
     fulfill the requirements of section 3511 of this chapter; and
       ``(5) in consultation with the Director and the Director of 
     the Office of Personnel Management, conduct formal training 
     programs to educate agency program and management officials 
     about information resources management.
       ``(c) With respect to the collection of information and the 
     control of paperwork, each agency shall--
       ``(1) establish a process within the office headed by the 
     official designated under subsection (a), that is 
     sufficiently independent of program responsibility to 
     evaluate fairly whether proposed collections of information 
     should be approved under this chapter, to--
       ``(A) review each collection of information before 
     submission to the Director for review under this chapter, 
     including--
       ``(i) an evaluation of the need for the collection of 
     information;
       ``(ii) a functional description of the information to be 
     collected;
       ``(iii) a plan for the collection of the information;
       ``(iv) a specific, objectively supported estimate of 
     burden;
       ``(v) a test of the collection of information through a 
     pilot program, if appropriate; and
       ``(vi) a plan for the efficient and effective management 
     and use of the information to be collected, including 
     necessary resources;
       ``(B) ensure that each information collection--
     [[Page H2626]]   ``(i) is inventoried, displays a control 
     number and, if appropriate, an expiration date;
       ``(ii) indicates the collection is in accordance with the 
     clearance requirements of section 3507; and
       ``(iii) contains a statement to inform the person receiving 
     the collection of information--

       ``(I) the reasons the information is being collected;
       ``(II) the way such information is to be used;
       ``(III) an estimate, to the extent practicable, of the 
     burden of the collection; and
       ``(IV) whether responses to the collection of information 
     are voluntary, required to obtain a benefit, or mandatory; 
     and

       ``(C) assess the information collection burden of proposed 
     legislation affecting the agency;
       ``(2)(A) except for good cause or as provided under 
     subparagraph (B), provide 60-day notice in the Federal 
     Register, and otherwise consult with members of the public 
     and affected agencies concerning each proposed collection of 
     information, to solicit comment to--
       ``(i) evaluate whether the proposed collection of 
     information is necessary for the proper performance of the 
     functions of the agency, including whether the information 
     shall have practical utility;
       ``(ii) evaluate the accuracy of the agency's estimate of 
     the burden of the proposed collection of information;
       ``(iii) enhance the quality, utility, and clarity of the 
     information to be collected; and
       ``(iv) minimize the burden of the collection of information 
     on those who are to respond, including through the use of 
     automated collection techniques or other forms of information 
     technology; and
       ``(B) for any proposed collection of information contained 
     in a proposed rule (to be reviewed by the Director under 
     section 3507(d)), provide notice and comment through the 
     notice of proposed rulemaking for the proposed rule and such 
     notice shall have the same purposes specified under 
     subparagraph (A) (i) through (iv);
       ``(3) certify (and provide a record supporting such 
     certification, including public comments received by the 
     agency) that each collection of information submitted to the 
     Director for review under section 3507--
       ``(A) is necessary for the proper performance of the 
     functions of the agency, including that the information has 
     practical utility;
       ``(B) is not unnecessarily duplicative of information 
     otherwise reasonably accessible to the agency;
       ``(C) reduces to the extent practicable and appropriate the 
     burden on persons who shall provide information to or for the 
     agency, including with respect to small entities, as defined 
     under section 601(6) of title 5, the use of such techniques 
     as--
       ``(i) establishing differing compliance or reporting 
     requirements or timetables that take into account the 
     resources available to those who are to respond;
       ``(ii) the clarification, consolidation, or simplification 
     of compliance and reporting requirements; or
       ``(iii) an exemption from coverage of the collection of 
     information, or any part thereof;
       ``(D) is written using plain, coherent, and unambiguous 
     terminology and is understandable to those who are to 
     respond;
       ``(E) is to be implemented in ways consistent and 
     compatible, to the maximum extent practicable, with the 
     existing reporting and recordkeeping practices of those who 
     are to respond;
       ``(F) indicates for each recordkeeping requirement the 
     length of time persons are required to maintain the records 
     specified;
       ``(G) contains the statement required under paragraph 
     (1)(B)(iii);
       ``(H) has been developed by an office that has planned and 
     allocated resources for the efficient and effective 
     management and use of the information to be collected, 
     including the processing of the information in a manner which 
     shall enhance, where appropriate, the utility of the 
     information to agencies and the public;
       ``(I) uses effective and efficient statistical survey 
     methodology appropriate to the purpose for which the 
     information is to be collected; and
       ``(J) to the maximum extent practicable, uses information 
     technology to reduce burden and improve data quality, agency 
     efficiency and responsiveness to the public; and
       ``(4) place an emphasis on minimizing the bureen on small 
     businesses with 50 or fewer employees.
       ``(d) With respect to information dissemination, each 
     agency shall--
       ``(1) ensure that the public has timely, equal, and 
     equitable access to the agency's public information, 
     including ensuring such access through--
       ``(A) encouraging a diversity of public and private sources 
     for information based on government public information,
       ``(B) in cases in which the agency provides public 
     information maintained in electronic format, providing 
     timely, equal, and equitable access to the underlying data 
     (in whole or in part); and
       ``(C) agency dissemination of public information in an 
     efficient, effective, and economical manner;
       ``(2) regularly solicit and consider public input on the 
     agency's information dissemination activities;
       ``(3) provide adequate notice when initiating, 
     substantially modifying, or terminating significant 
     information dissemination products; and
       ``(4) not, except where specifically authorized by 
     statute--
       ``(A) establish an exclusive, restricted, or other 
     distribution arrangement that interferes with timely and 
     equitable availability of public information to the public;
       ``(B) restrict or regulate the use, resale, or 
     redissemination of public information by the public;
       ``(C) charge fees or royalties for resale or 
     redissemination of public information; or
       ``(D) establish user fees for public information that 
     exceed the cost of dissemination, except that the Director 
     may waive the application of this subparagraph to an agency, 
     if--
       ``(i) the head of the agency submits a written request to 
     the Director, publishes a notice of the request in the 
     Federal Register, and provides a copy of the request to the 
     public upon request;
       ``(ii) the Director sets forth in writing a statement of 
     the scope, conditions, and duration of the waiver and the 
     reasons for granting it, and makes such statement available 
     to the public upon request; and
       ``(iii) the granting of the waiver would not materially 
     impair the timely and equitable availability of public 
     information to the public.
       ``(e) With respect to statistical policy and coordination, 
     each agency shall--
       ``(1) ensure the relevance, accuracy, timeliness, 
     integrity, and objectivity of information collected or 
     created for statistical purposes;
       ``(2) inform respondents fully and accurately about the 
     sponsors, purposes, and uses of statistical surveys and 
     studies;
       ``(3) protect respondents' privacy and ensure that 
     disclosure policies fully honor pledges of confidentiality;
       ``(4) observe Federal standards and practices for data 
     collection, analysis, documentation, sharing, and 
     dissemination of information;
       ``(5) ensure the timely publication of the results of 
     statistical surveys and studies, including information about 
     the quality and limitations of the surveys and studies; and
       ``(6) make data available to statistical agencies and 
     readily accessible to the public.
       ``(f) With respect to records management, each agency shall 
     implement and enforce applicable policies and procedures, 
     including requirements for archiving information maintained 
     in electronic format, particularly in the planning, design 
     and operation of information systems.
       ``(g) With respect to privacy and security, each agency 
     shall--
       ``(1) implement and enforce applicable policies, 
     procedures, standards, and guidelines on privacy, 
     confidentiality, security, disclosure and sharing of 
     information collected or maintained by or for the agency;
       ``(2) assume responsibility and accountability for 
     compliance with and coordinated management of sections 552 
     and 552a of title 5, the Computer Security Act of 1987 (40 
     U.S.C. 759 note), and related information management laws; 
     and
       ``(3) consistent with the Computer Security Act of 1987 (40 
     U.S.C. 759 note), identify and afford security protections 
     commensurate with the risk and magnitude of the harm 
     resulting from the loss, misuse, or unauthorized access to or 
     modification of information collected or maintained by or on 
     behalf of an agency.
       ``(h) With respect to Federal information technology, each 
     agency shall--
       ``(1) implement and enforce applicable Governmentwide and 
     agency information technology management policies, 
     principles, standards, and guidelines;
       ``(2) assume responsibility and accountability for 
     information technology investments;
       ``(3) promote the use of information technology by the 
     agency to improve the productivity, efficiency, and 
     effectiveness of agency programs, including the reduction of 
     information collection burdens on the public and improved 
     dissemination of public information;
       ``(4) propose changes in legislation, regulations, and 
     agency procedures to improve information technology 
     practices, including changes that improve the ability of the 
     agency to use technology to reduce burden; and
       ``(5) assume responsibility for maximizing the value and 
     assessing and managing the risks of major information systems 
     initiatives through a process that is--
       ``(A) integrated with budget, financial, and program 
     management decisions; and
       ``(B) used to select, control, and evaluate the results of 
     major information systems initiatives.

     ``Sec. 3507. Public information collection activities; 
       submission to Director; approval and delegation

       ``(a) An agency shall not conduct or sponsor the collection 
     of information unless in advance of the adoption or revision 
     of the collection of information--
       ``(1) the agency has--
       ``(A) conducted the review established under section 
     3506(c)(1);
       ``(B) evaluated the public comments received under section 
     3506(c)(2);
       ``(C) submitted to the Director the certification required 
     under section 3506(c)(3), the proposed collection of 
     information, copies of pertinent statutory authority, 
     regulations, 
     [[Page H2627]] and other related materials as the Director 
     may specify; and
       ``(D) published a notice in the Federal Register--
       ``(i) stating that the agency has made such submission; and
       ``(ii) setting forth--

       ``(I) a title for the collection of information;
       ``(II) a summary of the collection of information;
       ``(III) a brief description of the need for the information 
     and the proposed use of the information;
       ``(IV) a description of the likely respondents and proposed 
     frequency of response to the collection of information;
       ``(V) an estimate of the burden that shall result from the 
     collection of information; and
       ``(VI) notice that comments may be submitted to the agency 
     and Director;

       ``(2) the Director has approved the proposed collection of 
     information or approval has been inferred, under the 
     provisions of this section; and
       ``(3) the agency has obtained from the Director a control 
     number to be displayed upon the collection of information.
       ``(b) The Director shall provide at least 30 days for 
     public comment prior to making a decision under subsection 
     (c), (d), or (h), except for good cause or as provided under 
     subsection (j).
       ``(c)(1) For any proposed collection of information not 
     contained in a proposed rule, the Director shall notify the 
     agency involved of the decision to approve or disapprove the 
     proposed collection of information.
       ``(2) The Director shall provide the notification under 
     paragraph (1), within 60 days after receipt or publication of 
     the notice under subsection (a)(1)(D), whichever is later.
       ``(3) If the Director does not notify the agency of a 
     denial or approval within the 60-day period described under 
     paragraph (2)--
       ``(A) the approval may be inferred;
       ``(B) a control number shall be assigned without further 
     delay; and
       ``(C) the agency may collect the information for not more 
     than 1 year.
       ``(d)(1) For any proposed collection of information 
     contained in a proposed rule--
       ``(A) as soon as practicable, but no later than the date of 
     publication of a notice of proposed rulemaking in the Federal 
     Register, each agency shall forward to the Director a copy of 
     any proposed rule which contains a collection of information 
     and any information requested by the Director necessary to 
     make the determination required under this subsection; and
       ``(B) within 60 days after the notice of proposed 
     rulemaking is published in the Federal Register, the Director 
     may file public comments pursuant to the standards set forth 
     in section 3508 on the
      collection of information contained in the proposed rule;
       ``(2) When a final rule is published in the Federal 
     Register, the agency shall explain--
       ``(A) how any collection of information contained in the 
     final rule responds to the comments, if any, filed by the 
     Director or the public; or
       ``(B) the reasons such comments were rejected.
       ``(3) If the Director has received notice and failed to 
     comment on an agency rule within 60 days after the notice of 
     proposed rulemaking, the Director may not disapprove any 
     collection of information specifically contained in an agency 
     rule.
       ``(4) No provision in this section shall be construed to 
     prevent the Director, in the Director's discretion--
       ``(A) from disapproving any collection of information which 
     was not specifically required by an agency rule;
       ``(B) from disapproving any collection of information 
     contained in an agency rule, if the agency failed to comply 
     with the requirements of paragraph (1) of this subsection;
       ``(C) from disapproving any collection of information 
     contained in a final agency rule, if the Director finds 
     within 60 days after the publication of the final rule, and 
     after considering the agency's response to the Director's 
     comments filed under paragraph (2), that the collection of 
     information cannot be approved under the standards set forth 
     in section 3508; or
       ``(D) from disapproving any collection of information 
     contained in a final rule, if--
       ``(i) the Director determines that the agency has 
     substantially modified in the final rule the collection of 
     information contained in the proposed rule; and
       ``(ii) the agency has not given the Director the 
     information required under paragraph (1) with respect to the 
     modified collection of information, at least 60 days before 
     the issuance of the final rule.
       ``(5) This subsection shall apply only when an agency 
     publishes a notice of proposed rulemaking and requests public 
     comments.
       ``(6) The decision by the Director to approve or not act 
     upon a collection of information contained in an agency rule 
     shall not be subject to judicial review.
       ``(e)(1) Any decision by the Director under subsection (c), 
     (d), (h), or (j) to disapprove a collection of information, 
     or to instruct the agency to make substantive or material 
     change to a collection of information, shall be publicly 
     available and include an explanation of the reasons for such 
     decision.
       ``(2) Any written communication between the Administrator 
     of the Office of Information and Regulatory Affairs, or any 
     employee of the Office of Information and Regulatory Affairs, 
     and an agency or person not employed by the Federal 
     Government concerning a proposed collection of information 
     shall be made available to the public.
       ``(3) This subsection shall not require the disclosure of--
       ``(A) any information which is protected at all times by 
     procedures established for information
      which has been specifically authorized under criteria 
     established by an Executive order or an Act of Congress to 
     be kept secret in the interest of national defense or 
     foreign policy; or
       ``(B) any communication relating to a collection of 
     information, the disclosure of which could lead to 
     retaliation or discrimination against the communicator.
       ``(f)(1) An independent regulatory agency which is 
     administered by 2 or more members of a commission, board, or 
     similar body, may by majority vote void--
       ``(A) any disapproval by the Director, in whole or in part, 
     of a proposed collection of information that agency; or
       ``(B) an exercise of authority under subsection (d) of 
     section 3507 concerning that agency.
       ``(2) The agency shall certify each vote to void such 
     disapproval or exercise to the Director, and explain the 
     reasons for such vote. The Director shall without further 
     delay assign a control number to such collection of 
     information, and such vote to void the disapproval or 
     exercise shall be valid for a period of 3 years.
       ``(g) The Director may not approve a collection of 
     information for a period in excess of 3 years.
       ``(h)(1) If an agency decides to seek extension of the 
     Director's approval granted for a currently approved 
     collection of information, the agency shall--
       ``(A) conduct the review established under section 3506(c), 
     including the seeking of comment from the public on the 
     continued need for, and burden imposed by the collection of 
     information; and
       ``(B) after having made a reasonable effort to seek public 
     comment, but no later than 60 days before the expiration date 
     of the control number assigned by the Director for the 
     currently approved collection of information, submit the 
     collection of information for review and approval under this 
     section, which shall include an explanation of how the agency 
     has used the information that it has collected.
       ``(2) If under the provisions of this section, the Director 
     disapproves a collection of information contained in an 
     existing rule, or recommends or instructs the agency to make 
     a substantive or material change to a collection of 
     information contained in an existing rule, the Director 
     shall--
       ``(A) publish an explanation thereof in the Federal 
     Register; and
       ``(B) instruct the agency to undertake a rulemaking within 
     a reasonable time limited to consideration of changes to the 
     collection of information contained in the rule and 
     thereafter to submit the collection of information for 
     approval or disapproval under this chapter.
       ``(3) An agency may not make a substantive or material 
     modification to a collection of information after such 
     collection has been approved by the Director, unless the 
     modification has been submitted to the Director for review 
     and approval under this chapter.
       ``(i)(1) If the Director finds that a senior official of an 
     agency designated under section 3506(a) is sufficiently 
     independent of program responsibility to evaluate fairly 
     whether proposed collections of information should be 
     approved and has sufficient resources to carry out this 
     responsibility effectively, the Director may, by rule in 
     accordance with the notice and comment provisions of chapter 
     5 of title 5, United States Code, delegate to such official 
     the authority to approve proposed collections of information 
     in specific program areas, for specific purposes, or for all 
     agency purposes.
       ``(2) A delegation by the Director under this section shall 
     not preclude the Director from reviewing individual 
     collections of information if the Director determines that 
     circumstances warrant such a review. The Director shall 
     retain authority to revoke such delegations, both in general 
     and with regard to any specific matter. In acting for the 
     Director, any official to whom approval authority has been 
     delegated under this section shall comply fully with the 
     rules and regulations promulgated by the Director.
       ``(j)(1) The agency head may request the Director to 
     authorize collection of information prior to expiration of 
     time periods established under this chapter, if an agency 
     head determines that--
       ``(A) a collection of information--
       ``(i) is needed prior to the expiration of such time 
     periods; and
       ``(ii) is essential to the mission of the agency; and
       ``(B) the agency cannot reasonably comply with the 
     provisions of this chapter within such time periods because--
       ``(i) public harm is reasonably likely to result if normal 
     clearance procedures are followed; or
       ``(ii) an unanticipated event has occurred and the use of 
     normal clearance procedures is reasonably likely to prevent 
     or disrupt the collection of information related to the event 
     or is reasonably likely to cause a statutory or court-ordered 
     deadline to be missed.
       ``(2) The Director shall approve or disapprove any such 
     authorization request 
     [[Page H2628]] within the time requested by the agency head 
     and, if approved, shall assign the collection of information 
     a control number. Any collection of information conducted 
     under this subsection may be conducted without compliance 
     with the provisions of this chapter for a maximum of 90 days 
     after the date on which the Director received the request to 
     authorize such collection.

     ``Sec. 3508. Determination of necessity for information; 
       hearing

       ``Before approving a proposed collection of information, 
     the Director shall determine whether the collection of 
     information by the agency is necessary for the proper 
     performance of the functions of the agency, including whether 
     the information shall have practical utility. Before making a 
     determination the Director may give the agency and other 
     interested persons an opportunity to be heard or to submit 
     statements in writing. To the extent, if any, that the 
     Director determines that the collection of information by an 
     agency is unnecessary for any reason, the agency may not 
     engage in the collection of information.
     ``Sec. 3509. Designation of central collection agency

       ``The Director may designate a central collection agency to 
     obtain information for two or more agencies if the Director 
     determines that the needs of such agencies for information 
     will be adequately served by a single collection agency, and 
     such sharing of data is not inconsistent with applicable law. 
     In such cases the Director shall prescribe (with reference to 
     the collection of information) the duties and functions of 
     the collection agency so designated and of the agencies for 
     which it is to act as agent (including reimbursement for 
     costs). While the designation is in effect, an agency covered 
     by the designation may not obtain for itself information for 
     the agency which is the duty of the collection agency to 
     obtain. The Director may modify the designation from time to 
     time as circumstances require. The authority to designate 
     under this section is subject to the provisions of section 
     3507(f) of this chapter.

     ``Sec. 3510. Cooperation of agencies in making information 
       available

       ``(a) The Director may direct an agency to make available 
     to another agency, or an agency may make available to another 
     agency, information obtained by a collection of information 
     if the disclosure is not inconsistent with applicable law.
       ``(b)(1) If information obtained by an agency is released 
     by that agency to another agency, all the provisions of law 
     (including penalties which relate to the unlawful disclosure 
     of information) apply to the officers and employees of the 
     agency to which information is released to the same extent 
     and in the same manner as the provisions apply to the 
     officers and employees of the agency which originally 
     obtained the information.
       ``(2) The officers and employees of the agency to which the 
     information is released, in addition, shall be subject to the 
     same provisions of law, including penalties, relating to the 
     unlawful disclosure of information as if the information had 
     been collected directly by that agency.
     ``Sec. 3511. Establishment and operation of Government 
       Information Locator Service

       ``In order to assist agencies and the public in locating 
     information and to promote information sharing and equitable 
     access by the public, the Director shall--
       ``(1) cause to be established and maintained a distributed 
     agency-based electronic Government Information Locator 
     Service (hereafter in this section referred to as the 
     `Service'), which shall identify the major information 
     systems, holdings, and dissemination products of each agency;
       ``(2) require each agency to establish and maintain an 
     agency information locator service as a component of, and to 
     support the establishment and operation of the Service;
       ``(3) in cooperation with the Archivist of the United 
     States, the Administrator of General Services, the Public 
     Printer, and the Librarian of Congress, establish an 
     interagency committee to advise the Secretary of Commerce on 
     the development of technical standards for the Service to 
     ensure compatibility, promote information sharing, and 
     uniform access by the public;
       ``(4) consider public access and other user needs in the 
     establishment and operation of the Service;
       ``(5) ensure the security and integrity of the Service, 
     including measures to ensure that only information which is 
     intended to be disclosed to the public is disclosed through 
     the Service; and
       ``(6) periodically review the development and effectiveness 
     of the Service and make recommendations for improvement, 
     including other mechanisms for improving public access to 
     Federal agency public information.

     ``Sec. 3512. Public protection

       ``(a) Notwithstanding any other provision of law, no person 
     shall be subject to any penalty for failing to maintain or 
     provide information to any agency if the collection of 
     information involved was made after December 31, 1981, and at 
     the time of the failure did not display a current control 
     number assigned by the Director, or fails to state that such 
     request is not subject to this chapter.
       ``(b) Actions taken by agencies which are not in compliance 
     with subsection (a) of this section shall give rise to a 
     complete defense or bar to such action by an agency, which 
     may be raised at any time during the agency decision making 
     process or judicial review of the agency decision under any 
     available process for judicial review.

     ``Sec. 3513. Director review of agency activities; reporting; 
       agency response

       ``(a) In consultation with the Administrator of General 
     Services, the Archivist of the United States, the Director of 
     the National Institute of Standards and Technology, and the 
     Director of the Office of Personnel Management, the Director 
     shall periodically review selected agency information 
     resources management activities to ascertain the efficiency 
     and effectiveness of such activities to improve agency 
     performance and the accomplishment of agency missions.
       ``(b) Each agency having an activity reviewed under 
     subsection (a) shall, within 60 days after receipt of a 
     report on the review, provide a written plan to the Director 
     describing steps (including milestones) to--
       ``(1) be taken to address information resources management 
     problems identified in the report; and
       ``(2) improve agency performance and the accomplishment of 
     agency missions.

     ``Sec. 3514. Responsiveness to Congress

       ``(a)(1) The Director shall--
       ``(A) keep the Congress and congressional committees fully 
     and currently informed of the major activities under this 
     chapter; and
       ``(B) submit a report on such activities to the President 
     of the Senate and the Speaker of the House of Representatives 
     annually and at such other times as the Director determines 
     necessary.
       ``(2) The Director shall include in any such report a 
     description of the extent to which agencies have--
       ``(A) reduced information collection burdens on the public, 
     including--
       ``(i) a summary of accomplishments and planned initiatives 
     to reduce collection of information burdens;
       ``(ii) a list of all violations of this chapter and of any 
     rules, guidelines, policies, and procedures issued pursuant 
     to this chapter;
       ``(iii) a list of any increase in the collection of 
     information burden, including the authority for each such 
     collection; and
       ``(iv) a list of agencies that in the preceding year did 
     not reduce information collection burdens by at least 10 
     percent pursuant to section 3505, a list of the programs and 
     statutory responsibilities of those agencies that precluded 
     that reduction, and recommendations to assist those agencies 
     to reduce information collection burdens in accordance with 
     that section;
       ``(B) improved the quality and utility of statistical 
     information;
       ``(C) improved public access to Government information; and
       ``(D) improved program performance and the accomplishment 
     of agency missions through information resources management.
       ``(b) The preparation of any report required by this 
     section shall be based on performance results reported by the 
     agencies and shall not increase the collection of information 
     burden on persons outside the Federal Government.

     ``Sec. 3515. Administrative powers

       ``Upon the request of the Director, each agency (other than 
     an independent regulatory agency) shall, to the extent 
     practicable, make its services, personnel, and facilities 
     available to the Director for the performance of functions 
     under this chapter.

     ``Sec. 3516. Rules and regulations

       ``The Director shall promulgate rules, regulations, or 
     procedures necessary to exercise the authority provided by 
     this chapter.

     ``Sec. 3517. Consultation with other agencies and the public

       ``(a) In developing information resources management 
     policies, plans, rules, regulations, procedures, and 
     guidelines and in reviewing collections of information, the 
     Director shall provide interested agencies and persons early 
     and meaningful opportunity to comment.
       ``(b) Any person may request the Director to review any 
     collection of information conducted by or for an agency to 
     determine, if, under this chapter, the person shall maintain, 
     provide, or disclose the information to or for the agency. 
     Unless the request is frivolous, the Director shall, in 
     coordination with the agency responsible for the collection 
     of information--
       ``(1) respond to the request within 60 days after receiving 
     the request, unless such period is extended by the Director 
     to a specified date and the person making the request is 
     given notice of such extension; and
       ``(2) take appropriate remedial action, if necessary.

     ``Sec. 3518. Effect on existing laws and regulations

       ``(a) Except as otherwise provided in this chapter, the 
     authority of an agency under any other law to prescribe 
     policies, rules, regulations, and procedures for Federal 
     information resources management activities is subject to the 
     authority of the Director under this chapter.
       ``(b) Nothing in this chapter shall be deemed to affect or 
     reduce the authority of the Secretary of Commerce or the 
     Director of the Office of Management and Budget pursuant to 
     Reorganization Plan No. 1 of 1977 (as amended) and Executive 
     order, relating to telecommunications and
      information policy, procurement and management of 
     telecommunications and information systems, spectrum use, 
     and related matters.
       ``(c)(1) Except as provided in paragraph (2), this chapter 
     shall not apply to obtaining, 
     [[Page H2629]] causing to be obtained, soliciting, or 
     requiring the disclosure to third parties or the public, of 
     facts or opinions--
       ``(A) during the conduct of a Federal criminal 
     investigation or prosecution, or during the disposition of a 
     particular criminal matter;
       ``(B) during the conduct of--
       ``(i) a civil action to which the United States or any 
     official or agency thereof is a party; or
       ``(ii) an administrative action or investigation involving 
     an agency against specific individuals or entities;
       ``(C) by compulsory process pursuant to the Antitrust Civil 
     Process Act and section 13 of the Federal Trade Commission 
     Improvements Act of 1980; or
       ``(D) during the conduct of intelligence activities as 
     defined in section 4-206 of Executive Order No. 12036, issued 
     January 24, 1978, or successor orders, or during the conduct 
     of cryptologic activities that are communications security 
     activities.
       ``(2) This chapter applies to obtaining, causing to be 
     obtained, soliciting, or requiring the disclosure to third 
     parties or the public, of facts or opinions during the 
     conduct of general investigations (other than information 
     collected in an antitrust investigation to the extent 
     provided in subparagraph (C) of paragraph (1)) undertaken 
     with reference to a category of individuals or entities such 
     as a class of licensees or an entire industry.
       ``(d) Nothing in this chapter shall be interpreted as 
     increasing or decreasing the authority conferred by Public 
     Law 89-306 on the Administrator of the General Services 
     Administration, the Secretary of Commerce, or the Director of 
     the Office of Management and Budget.
       ``(e) Nothing in this chapter shall be interpreted as 
     increasing or decreasing the authority of the President, the 
     Office of Management and Budget or the Director thereof, 
     under the laws of the United States, with respect to the 
     substantive policies and programs of departments, agencies 
     and offices, including the substantive authority of any 
     Federal agency to enforce the civil rights laws.

     ``Sec. 3519. Access to information

       ``Under the conditions and procedures prescribed in section 
     716 of title 31, the Director and personnel in the Office of 
     Information and Regulatory Affairs shall furnish such 
     information as the Comptroller General may require for the 
     discharge of the responsibilities of the Comptroller General. 
     For the purpose of obtaining such information, the 
     Comptroller General or representatives thereof shall have 
     access to all books, documents, papers and records, 
     regardless of form or format, of the Office.

     ``Sec. 3520. Authorization of appropriations

       ``There are authorized to be appropriated to the Office of 
     Information and Regulatory Affairs to carry out the 
     provisions of this chapter such sums as may be necessary.''.
     SEC. 3. EFFECTIVE DATE.

       The amendments made by this Act shall take effect October 
     1, 1995.
                                H.R. 925
       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 ``Private Property Protection 
     Act of 1995''.

     SEC. 2. FEDERAL POLICY AND DIRECTION.

       (a) General Policy.--It is the policy of the Federal 
     Government that no law or agency action should limit the use 
     of privately owned property so as to diminish its value.
       (b) Application to Federal Agency Action.--Each Federal 
     agency, officer, and employee should exercise Federal 
     authority to ensure that agency action will not limit the use 
     of privately owned property so as to diminish its value.

     SEC. 3. RIGHT TO COMPENSATION.

       (a) In General.--The Federal Government shall compensate an 
     owner of property whose use of any portion of that property 
     has been limited by an agency action, under a specified 
     regulatory law, that diminishes the fair market value of that 
     portion by 20 percent or more. The amount of the compensation 
     shall equal the diminution in value that resulted from the 
     agency action. If the diminution in value of a portion of 
     that property is greater than 50 percent, at the option of 
     the owner, the Federal Government shall buy that portion of 
     the property for its fair market value.
       (b) Duration of Limitation on Use.--Property with respect 
     to which compensation has been paid under this Act shall not 
     thereafter be used contrary to the limitation imposed by the 
     agency action, even if that action is later rescinded or 
     otherwise vitiated. However, if that action is later 
     rescinded or otherwise vitiated, and the owner elects to 
     refund the amount of the compensation, adjusted for 
     inflation, to the Treasury of the United States, the property 
     may be so used.

     SEC. 4. EFFECT OF STATE LAW.

       If a use is a nuisance as defined by the law of a State or 
     is already prohibited under a local zoning ordinance, no 
     compensation shall be made under this Act with respect to a 
     limitation on that use.

     SEC. 5. EXCEPTIONS.

       (a) Prevention of Hazard to Health or Safety or Damage to 
     Specific Property.--No compensation shall be made under this 
     Act with respect to an agency action the primary purpose of 
     which is to prevent an identifiable--
       (1) hazard to public health or safety; or
       (2) damage to specific property other than the property 
     whose use is limited.
       (b) Navigation Servitude.--No compensation shall be made 
     under this Act with respect to an agency action pursuant to 
     the Federal navigation servitude, as defined by the courts of 
     the United States, except to the extent such servitude is 
     interpreted to apply to wetlands.

     SEC. 6. PROCEDURE.

       (a) Request of Owner.--An owner seeking compensation under 
     this Act shall make a written request for compensation to the 
     agency whose agency action resulted in the limitation. No 
     such request may be made later than 180 days after the owner 
     receives actual notice of that agency action.
       (b) Negotiations.--The agency may bargain with that owner 
     to establish the amount of the compensation. If the agency 
     and the owner agree to such an amount, the agency shall 
     promptly pay the owner the amount agreed upon.
       (c) Choice of Remedies.--If, not later than 180 days after 
     the written request is made, the parties do not come to an 
     agreement as to the right to and amount of compensation, the 
     owner may choose to take the matter to binding arbitration or 
     seek compensation in a civil action.
       (d) Arbitration.--The procedures that govern the 
     arbitration shall, as nearly as practicable, be those 
     established under title 9, United States Code, for 
     arbitration proceedings to which that title applies. An award 
     made in such arbitration shall include a reasonable 
     attorney's fee and other arbitration costs (including 
     appraisal fees). The agency shall promptly pay any award made 
     to the owner.
       (e) Civil Action.--An owner who does not choose 
     arbitration, or who does not receive prompt payment when 
     required by this section, may obtain appropriate relief in a 
     civil action against the agency. An owner who prevails in a 
     civil action under this section shall be entitled to, and the 
     agency shall be liable for, a reasonable attorney's fee and 
     other litigation costs (including appraisal fees). The court 
     shall award interest on the amount of any compensation from 
     the time of the limitation.
       (f) Source of Payments.--Any payment made under this 
     section to an owner, and any judgment obtained by an owner in 
     a civil action under this section shall, notwithstanding any 
     other provision of law, be made from the annual appropriation 
     of the agency whose action occasioned the payment or 
     judgment. If the agency action resulted from a requirement 
     imposed by another agency, then the agency making the payment 
     or satisfying the judgment may seek partial or complete 
     reimbursement from the appropriated funds of the other 
     agency. For this purpose the head of the agency concerned may 
     transfer or reprogram any appropriated funds available to the 
     agency. If insufficient funds exist for the payment or to 
     satisfy the judgment, it shall be the duty of the head of the 
     agency to seek the appropriation of such funds for the next 
     fiscal year.

     SEC. 7. LIMITATION.

       Notwithstanding any other provision of law, any obligation 
     of the United States to make any payment under this Act shall 
     be subject to the availability of appropriations.

     SEC. 8. DUTY OF NOTICE TO OWNERS.

       Whenever an agency takes an agency action limiting the use 
     of private property, the agency shall give appropriate notice 
     to the owners of that property explaining their rights under 
     this Act and the procedures directly affected for obtaining 
     any compensation that may be due to them under this Act.

     SEC. 9. RULES OF CONSTRUCTION.

       (a) Effect on Constitutional Right to Compensation.--
     Nothing in this Act shall be construed to limit any right to 
     compensation that exists under the Constitution or under 
     other laws of the United States.
       (b) Effect of Payment.--Payment of compensation under this 
     Act (other than when the property is bought by the Federal 
     Government at the option of the owner) shall not confer any 
     rights on the Federal Government other than the limitation on 
     use resulting from the agency action.

     SEC. 9. DEFINITIONS.

       For the purposes of this Act--
       (1) the term ``property'' means land and includes the right 
     to use or receive water;
       (2) a use of property is limited by an agency action if a 
     particular legal right to use that property no longer exists 
     because of the action;
       (3) the term ``agency action'' has the meaning given that 
     term in section 551 of title 5, United States Code, but also 
     includes the making of a grant to a public authority 
     conditioned upon an action by the recipient that would 
     constitute a limitation if done directly by the agency;
       (4) the term ``agency'' has the meaning given that term in 
     section 551 of title 5, United States Code;
       (5) the term ``specified regulatory law'' means--
       (A) section 404 of the Federal Water Pollution Control Act 
     (33 U.S.C. 1344);
       (B) the Endangered Species Act of 1979 (16 U.S.C. 1531 et 
     seq.);
       (C) title XII of the Food Security Act of 1985 (16 U.S.C. 
     3821 et seq.); or
       (D) with respect to an owner's right to use or receive 
     water only--
       (i) the Act of June 17, 1902, and all Acts amendatory 
     thereof or supplementary thereto, popularly called the 
     ``Reclamation Acts'' (43 U.S.C. 371 et seq.);
     [[Page H2630]]   (ii) the Federal Land Policy Management Act 
     (43 U.S.C. 1701 et seq.); or
       (iii) section 6 of the Forest and Rangeland Renewable 
     Resources Planning Act of 1974 (16 U.S.C. 1604);
       (6) the term ``fair market value'' means the most probable 
     price at which property would change hands, in a competitive 
     and open market under all conditions requisite to a fair 
     sale, between a willing buyer and a willing seller, neither 
     being under any compulsion to buy or sell and both having 
     reasonable knowledge of relevant facts, at the time the 
     agency action occurs;
       (7) the term ``State'' includes the District of Columbia, 
     Puerto Rico, and any other territory or possession of the 
     United States; and
       (8) the term ``law of the State'' includes the law of a 
     political subdivision of a State.
                                H.R. 926

       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 ``Regulatory Reform and Relief 
     Act''.
             TITLE I--STRENGTHENING REGULATORY FLEXIBILITY

     SEC. 101. JUDICIAL REVIEW.

       (a) Amendment.--Section 611 of title 5, United States Code, 
     is amended to read as follows:

     ``Sec. 611. Judicial review

       ``(a)(1) Except as provided in paragraph (2), not later 
     than one year notwithstanding any other provision of law 
     after the effective date of a final rule with respect to 
     which an agency--
       ``(A) certified, pursuant to section 605(b), that such rule 
     would not have a significant economic impact on a substantial 
     number of small entities; or
       ``(B) prepared a final regulatory flexibility analysis 
     pursuant to section 604,

     an affected small entity may petition for the judicial review 
     of such certification or analysis in accordance with the 
     terms of this subsection. A court having jurisdiction to 
     review such rule for compliance with the provisions of 
     section 553 or under any other provision of law shall have 
     jurisdiction to review such certification or analysis. In the 
     case where an agency delays the issuance of a final 
     regulatory flexibility analysis pursuant to section 608(b), a 
     petition for judicial review under this subsection shall be 
     filed not later than one year notwithstanding any other 
     provision of law after the date the analysis is made 
     available to the public.
       ``(2) For purposes of this subsection, the term `affected 
     small entity' means a small entity that is or will be 
     adversely affected by the final rule.
       ``(3) Nothing in this subsection shall be construed to 
     affect the authority of any court to stay the effective date 
     of any rule or provision thereof under any other provision of 
     law.
       ``(4)(A) In the case where the agency certified that such 
     rule would not have a significant economic impact on a 
     substantial number of small entities, the court may order the 
     agency to prepare a final regulatory flexibility analysis 
     pursuant to section 604 if the court determines, on the basis 
     of the rulemaking record, that the certification was 
     arbitrary, capricious, an abuse of discretion, or otherwise 
     not in accordance with law.
       ``(B) In the case where the agency prepared a final 
     regulatory flexibility analysis, the court may order the 
     agency to take corrective action consistent with the 
     requirements of section 604 if the court determines, on the 
     basis of the rulemaking record, that the final regulatory 
     flexibility analysis was prepared by the agency without 
     observance of procedure required by section 604.
       ``(5) If, by the end of the 90-day period beginning on the 
     date of the order of the court pursuant to paragraph (4) (or 
     such longer period as the court may provide), the agency 
     fails, as appropriate--
       ``(A) to prepare the analysis required by section 604; or
       ``(B) to take corrective action consistent with the 
     requirements of section 604,

     the court may stay the rule or grant such other relief as it 
     deems appropriate.
       ``(6) In making any determination or granting any relief 
     authorized by this subsection, the court shall take due 
     account of the rule of prejudicial error.
       ``(b) In an action for the judicial review of a rule, any 
     regulatory flexibility analysis for such rule (including an 
     analysis prepared or corrected pursuant to subsection (a)(4)) 
     shall constitute part of the whole record of agency action in 
     connection with such review.
       ``(c) Nothing in this section bars judicial review of any 
     other impact statement or similar analysis required by any 
     other law if judicial review of such statement or analysis is 
     otherwise provided by law.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply only to final agency rules issued after the date 
     of enactment of this Act.

     SEC. 102. RULES COMMENTED ON BY SBA CHIEF COUNSEL FOR 
                   ADVOCACY.

       (a) In General.--Section 612 of title 5, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d) Action by the SBA Chief Counsel for Advocacy.--
       ``(1) Transmittal of proposed rules and initial regulatory 
     flexibility analysis to sba chief counsel for advocacy.--On 
     or before the 30th day preceding the date of publication by 
     an agency of general notice of proposed rulemaking for a 
     rule, the agency shall transmit to the Chief Counsel for 
     Advocacy of the Small Business Administration--
       ``(A) a copy of the proposed rule; and
       ``(B)(i) a copy of the initial regulatory flexibility 
     analysis for the rule if required under section 603; or
       ``(ii) a determination by the agency that an initial 
     regulatory flexibility analysis is not required for the 
     proposed rule under section 603 and an explanation for the 
     determination.
       ``(2) Statement of effect.--On or before the 15th day 
     following receipt of a proposed rule and initial regulatory 
     flexibility analysis from an agency under paragraph (1), the 
     Chief Counsel for Advocacy may transmit to the agency a 
     written statement of the effect of the proposed rule on small 
     entities.
       ``(3) Response.--If the Chief Counsel for Advocacy 
     transmits to an agency a statement of effect on a proposed 
     rule in accordance with paragraph (2), the agency shall 
     publish the statement, together with the response of the 
     agency to the statement, in the Federal Register at the time 
     of publication of general notice of proposed rulemaking for 
     the rule.
       ``(4) Special rule.--Any proposed rules issued by an 
     appropriate Federal banking agency (as that term is defined 
     in section 3(q) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(q)), the National Credit Union Administration, or 
     the Office of Federal Housing Enterprise Oversight, in 
     connection with the implementation of monetary policy or to 
     ensure the safety and soundness of federally insured 
     depository institutions, any affiliate of such an 
     institution, credit unions, or government sponsored housing 
     enterprises or to protect the Federal deposit insurance funds 
     shall not be subject to the requirements of this 
     subsection.''.
       (b) Conforming Amendment.--Section 603(a) of title 5, 
     United States Code, is amended by inserting ``in accordance 
     with section 612(d)'' before the period at the end of the 
     last sentence.

     SEC. 103. SENSE OF CONGRESS REGARDING SBA CHIEF COUNSEL FOR 
                   ADVOCACY.

       It is the sense of Congress that the Chief Counsel for 
     Advocacy of the Small Business Administration should be 
     permitted to appear as amicus curiae in any action or case 
     brought in a court of the United States for the purpose of 
     reviewing a rule.
                  TITLE II--REGULATORY IMPACT ANALYSES

     SEC. 201. DEFINITIONS.

       Section 551 of title 5, United States Code, is amended by 
     striking ``and'' at the end of paragraph (13), by striking 
     the period at the end of paragraph (14) and inserting a 
     semicolon, and by adding at the end the following:
       ``(15) `major rule' means any rule subject to section 
     553(c) that is likely to result in--
       ``(A) an annual effect on the economy of $50,000,000 or 
     more;
       ``(B) a major increase in costs or prices for consumers, 
     individual industries, Federal, State, or local government 
     agencies, or geographic regions, or
       ``(C) significant adverse effects on competition, 
     employment, investment, productivity, innovation, or on the 
     ability of United States-based enterprises to compete with 
     foreign-based enterprises in domestic and export markets; and
       ``(16) `Director' means the Director of the Office of 
     Management and Budget.''.

     SEC. 202. RULEMAKING NOTICES FOR MAJOR RULES.

       Section 553 of title 5, United States Code, is amended by 
     adding at the end the following:
       ``(f)(1) Each agency shall for a proposed major rule 
     publish in the Federal Register, at least 90 days before the 
     date of publication of the general notice required under 
     subsection (b), a notice of intent to engage in rulemaking.
       ``(2) A notice under paragraph (1) for a proposed major 
     rule shall include, to the extent possible, the information 
     required to be included in a regulatory impact analysis for 
     the rule under subsection (i)(4)(B) and (D).
       ``(3) For a major rule proposed by an agency, the head of 
     the agency shall include in a general notice under subsection 
     (b), a preliminary regulatory impact analysis for the rule 
     prepared in accordance with subsection (i).
       ``(4) For a final major rule, the agency shall include with 
     the statement of basis and purpose--
       ``(A) a summary of a final regulatory impact analysis of 
     the rule in accordance with subsection (i); and
       ``(B) a clear delineation of all changes in the information 
     included in the final regulatory impact analysis under 
     subsection (i) from any such information that was included in 
     the notice for the rule under subsection (b).

     The agency shall provide the complete text of a final 
     regulatory impact analysis upon request.
       ``(5) The issuance of a notice of intent to engage in 
     rulemaking under paragraph (1) and the issuance of a 
     preliminary regulatory impact analysis under paragraph (3) 
     shall not be considered final agency action for purposes of 
     section 704.
       ``(6) In a rulemaking involving a major rule, the agency 
     conducting the rulemaking shall make a written record 
     describing the subject of all contacts the agency made with 
     persons outside the agency relating to such rulemaking. If 
     the contact was made with a 
     [[Page H2631]] non-governmental person, the written record of 
     such contact shall be made available, upon request to the 
     public.''.

     SEC. 203. HEARING REQUIREMENT FOR PROPOSED RULES; AND 
                   EXTENSION OF COMMENT PERIOD.

       (a) Hearing Requirement.--Section 553 of title 5, United 
     States Code, as amended by section 202, is further amended by 
     adding after subsection (f) the following:
       ``(g) If more than 100 interested persons acting 
     individually submit requests for a hearing to an agency 
     regarding any major rule proposed by the agency, the agency 
     shall hold such a hearing on the proposed rule.''.
       (b) Extension of Comment Period.--Section 553 of title 5, 
     United States Code, as amended by subsection (a), is further 
     amended by adding after subsection (g) the following:
       ``(h) If during the 90-day period beginning on the date of 
     publication of a notice under subsection (f) for a proposed 
     major rule, or if during the period beginning on the date of 
     publication or service of notice required by subsection (b) 
     for a proposed major rule, more than 100 persons individually 
     contact the agency to request an extension of the period for 
     making submissions under subsection (c) pursuant to the 
     notice, the agency--
       ``(1) shall provide an additional 30-day period for making 
     those submissions; and
       ``(2) may not adopt the rule until after the additional 
     period.''.
       (c) Response to Comments.--Section 553(c) of title 5, 
     United States Code, is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following:
       ``(2) Each agency shall publish in the Federal Register, 
     with each rule published under section 552(a)(1)(D), 
     responses to the substance of the comments received by the 
     agency regarding the rule.''.

     SEC. 204. REGULATORY IMPACT ANALYSIS.

       Section 553 of title 5, United States Code, as amended by 
     section 203, is amended by adding after subsection (h) the 
     following:
       ``(i)(1) Each agency shall, in connection with every major 
     rule, prepare, and, to the extent permitted by law, consider, 
     a regulatory impact analysis. Such analysis may be combined 
     with any regulatory flexibility analysis performed under 
     sections 603 and 604.
       ``(2) Each agency shall initially determine whether a rule 
     it intends to propose or issue is a major rule. The Director 
     shall have authority to order a rule to be treated as a major 
     rule and to require any set of related rules to be considered 
     together as a major rule.
       ``(3) Except as provided in subsection (j), agencies shall 
     prepare--
       ``(A) a preliminary regulatory impact analysis, which shall 
     be transmitted, along with a notice of proposed rulemaking, 
     to the Director at least 60 days prior to the publication of 
     notice of proposed rulemaking, and
       ``(B) a final regulatory impact analysis, which shall be 
     transmitted along with the final rule at least 30 days prior 
     to the publication of a major rule.
       ``(4) Each preliminary and final regulatory impact analysis 
     shall contain the following information:
       ``(A) A description of the potential benefits of the rule, 
     including any beneficial effects that cannot be quantified in 
     monetary terms and the identification of those likely to 
     receive the benefits.
       ``(B) An explanation of the necessity, legal authority, and 
     reasonableness of the rule and a description of the condition 
     that the rule is to address.
       ``(C) A description of the potential costs of the rule, 
     including any adverse effects that cannot be quantified in 
     monetary terms, and the identification of those likely to 
     bear the costs.
       ``(D) An analysis of alternative approaches, including 
     market based mechanisms, that could substantially achieve the 
     same regulatory goal at a lower cost and an explanation of 
     the reasons why such alternative approaches were not adopted, 
     together with a demonstration that the rule provides for the 
     least costly approach.
       ``(E) A statement that the rule does not conflict with, or 
     duplicate, any other rule or a statement of the reasons why 
     such a conflict or duplication exists.
       ``(F) A statement of whether the rule will require on-site 
     inspections or whether persons will be required by the rule 
     to maintain any records which will be subject to inspection, 
     and a statement of whether the rule will require persons to 
     obtain licenses, permits, or other certifications including 
     specification of any associated fees or fines.
       ``(G) An estimate of the costs to the agency for 
     implementation and enforcement of the rule and of whether the 
     agency can be reasonably expected to implement the rule with 
     the current level of appropriations.
       ``(5)(A) the Director is authorized to review and prepare 
     comments on any preliminary or final regulatory impact 
     analysis, notice of proposed rulemaking, or final rule based 
     on the requirements of this subsection.
       ``(B) Upon the request of the Director, an agency shall 
     consult with the Director concerning the review of a 
     preliminary impact analysis or notice of proposed rulemaking 
     and shall refrain from publishing its preliminary regulatory 
     impact analysis or notice of proposed rulemaking until such 
     review is concluded. The Director's review may not take 
     longer than 90 days after the date of the request of the 
     Director.
       ``(6)(A) An agency may not adopt a major rule unless the 
     final regulatory impact analysis for the rule is approved or 
     commented upon in writing by the Director or by an individual 
     designated by the Director for that purpose.
       ``(B) Upon receiving notice that the Director intends to 
     comment in writing with respect to any final regulatory 
     impact analysis or final rule, the agency shall refrain from 
     publishing its final regulatory impact analysis or final rule 
     until the agency has responded to the Director's comments and 
     incorporated those comments in the agency's response in the 
     rulemaking file. If the Director fails to make such comments 
     in writing with respect to any final regulatory impact 
     analysis or final rule within 90 days of the date the 
     Director gives such notice, the agency may adopt such final 
     regulatory impact analysis or final rule.
       ``(7) Notwithstanding section 551(16), for purposes of this 
     subsection with regard to any rule proposed or issued by an 
     appropriate Federal banking agency (as that term is defined 
     in section 3(q) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(q)), the National Credit Union Administration, or 
     the Office of Federal Housing Enterprise Oversight, the term 
     `Director' means the head of such agency, Administration, or 
     Office.''.

     SEC. 205. STANDARD OF CLARITY.

       Section 553 of title 5, United States Code, as amended in 
     section 204, is amended by adding after subsection (i) the 
     following:
       ``(j) To the extent practicable, the head of an agency 
     shall seek to ensure that any proposed major rule or 
     regulatory impact analysis of such a rule is written in a 
     reasonably simple and understandable manner and provides 
     adequate notice of the content of the rule to affected 
     persons.''.

     SEC. 206. EXEMPTIONS.

       Section 553 of title 5, United States Code, as amended by 
     section 205, is further amended by adding after subsection 
     (j) the following:
       ``(k)(1) The provisions of this section regarding major 
     rules shall not apply to--
       ``(A) any regulation that responds to an emergency 
     situation if such regulation is reported to the Director as 
     soon as is practicable;
       ``(B) any regulation for which consideration under the 
     procedures of this section would conflict with deadlines 
     imposed by statute or by judicial order;
       ``(C) any regulation proposed or issued in connection with 
     the implementation of monetary policy or to ensure the safety 
     and soundness of federally insured depository institutions, 
     any affiliate of such institution, credit unions, or 
     government sponsored housing enterprises regulated by the 
     Office of Federal Housing Enterprise Oversight;
       ``(D) any agency action that the head of the agency 
     certifies is limited to interpreting, implementing, or 
     administering the internal revenue laws of the United States, 
     including any regulation proposed or issued in connection 
     with ensuring the collection of taxes from a subsidiary of a 
     foreign company doing business in the United States; and
       ``(E) any regulation proposed or issued pursuant to section 
     553 of title 5, United States Code, in connection with 
     imposing trade sanctions against any country that engages in 
     illegal trade activities against the United States that are 
     injurious to American technology, jobs, pensions, or general 
     economic well-being.

     A regulation described in subparagraph (B) shall be reported 
     to the Director with a brief explanation of the conflict and 
     the agency, in consultation with the Director, shall, to the 
     extent permitted by statutory or judicial deadlines, adhere 
     to the process of this section.
       ``(2) The Director may in accordance with the purposes of 
     this section exempt any class or category of regulations from 
     any or all requirements of this section.
       ``(3) For purposes of paragraph (1), the term `emergency 
     situation' means a situation that is--
       ``(A) immediately impending and extraordinary in nature, or
       ``(B) demanding attention due to a condition, circumstance, 
     or practice reasonably expected to cause death, serious 
     illness, or severe injury to humans or substantial 
     endangerment to private property or the environment if no 
     action is taken.''.

     SEC. 207. REPORT.

       The Director of the Office of Management and Budget shall 
     submit a report to the Congress no later than 24 months after 
     the date of the enactment of this Act containing an analysis 
     of rulemaking procedures of Federal agencies and an analysis 
     of the impact of those rulemaking procedures on the regulated 
     public and regulatory process.

     SEC. 208. EFFECTIVE DATE.

       The amendment made by this title shall apply only to final 
     agency rules issued after rulemaking begun after the date of 
     enactment of this Act.
                         TITLE III--PROTECTIONS

     SEC. 301. PRESIDENTIAL ACTION.

       Pursuant to the authority of section 7301 of title 5, 
     United States Code, the President shall, within 180 days of 
     the date of the enactment of this title, prescribe 
     regulations for employees of the executive branch to ensure 
     that Federal laws and regulations shall be administered 
     consistent with the principle that any person shall, in 
     connection with the enforcement of such laws and 
     regulations--
     [[Page H2632]]   (1) be protected from abuse, reprisal, or 
     retaliation, and
       (2) be treated fairly, equitably, and with due regard for 
     such person's rights under the Constitution.
                               H.R. 1022
       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 ``Risk Assessment and Cost-
     Benefit Act of 1995''.

     SEC. 2. FINDINGS.

       The Congress finds that:
       (1) Environmental, health, and safety regulations have led 
     to dramatic improvements in the environment and have 
     significantly reduced human health risk; however, the Federal 
     regulations that have led to these improvements have been 
     more costly and less effective than they could have been; too 
     often, regulatory priorities have not been based upon a 
     realistic consideration of risk, risk reduction 
     opportunities, and costs.
       (2) The public and private resources available to address 
     health, safety, and environmental concerns are not unlimited; 
     those resources need to be allocated to address the greatest 
     needs in the most cost-effective manner and so that the 
     incremental costs of regulatory alternatives are reasonably 
     related to the incremental benefits.
       (3) To provide more cost-effective and cost-reasonable 
     protection to human health and the environment, regulatory 
     priorities should be based upon realistic consideration of 
     risk; the priority setting process must include 
     scientifically sound, objective, and unbiased risk 
     assessments, comparative risk analysis, and risk management 
     choices that are grounded in cost-benefit principles.
       (4) Risk assessment has proven to be a useful decision 
     making tool; however, improvements are needed in both the 
     quality of assessments and the characterization and 
     communication of findings; scientific and other data must be 
     better collected, organized, and evaluated; most importantly, 
     the critical information resulting from a risk assessment 
     must be effectively communicated in an objective and unbiased 
     manner to decision makers, and from decision makers to the 
     public.
       (5) The public stake holders must be fully involved in the 
     risk-decision making process. They have the right-to-know 
     about the risks addressed by regulation, the amount of risk 
     to be reduced, the quality of the science used to support 
     decisions, and the cost of implementing and complying with 
     regulations. This knowledge will allow for public scrutiny 
     and promote quality, integrity, and responsiveness of agency 
     decisions.
       (6) Although risk assessment is one important method to 
     improve regulatory decision-making, other approaches to 
     secure prompt relief from the burden of unnecessary and 
     overly complex regulations will also be necessary.

     SEC. 3. COVERAGE OF ACT.

       This Act does not apply to any of the following:
       (1) A situation that the head of an affected Federal agency 
     determines to be an emergency. In such circumstance, the head 
     of the agency shall comply with the provisions of this Act 
     within as reasonable a time as is practical.
       (2) Activities necessary to maintain military readiness.
       (3) Any individual food, drug, or other product label, or 
     to any risk characterization appearing on any such label, if 
     the individual product label is required by law to be 
     approved by a Federal department or agency prior to use.
       (4) Approval of State programs or plans by Federal 
     agencies.

     SEC. 4. UNFUNDED MANDATES.

       Nothing in this Act itself shall, without Federal funding 
     and further Federal agency action, create any new obligation 
     or burden on any State or local government or otherwise 
     impose any financial burden on any State or local government 
     in the absence of Federal funding, except with respect to 
     routine information requests.

     SEC. 5. DEFINITIONS.

       For purposes of this Act:
       (1) Costs.--The term ``costs'' includes the direct and 
     indirect costs to the United States Government, to State, 
     local, and tribal governments, and to the private sector, 
     wage earners, consumers, and the economy, of implementing and 
     complying with a rule or alternative strategy.
       (2) Benefit.--The term ``benefit'' means the reasonably 
     identifiable significant health, safety, environmental, 
     social and economic benefits that are expected to result 
     directly or indirectly from implementation of a rule or 
     alternative strategy.
       (3) Major rule.--The term ``major rule'' means any 
     regulation that is likely to result in an annual increase in 
     costs of $25,000,000 or more. Such term does not include any 
     regulation or other action taken by an agency to authorize or 
     approve any individual substance or product.
       (4) Program designed to protect human health.--The term 
     ``program designed to protect human health'' does not include 
     regulatory programs concerning health insurance, health 
     provider services, or health care diagnostic services.
       (5) Emergency.--As used in this Act, the term ``emergency'' 
     means a situation that is immediately impending and 
     extraordinary in nature, demanding attention due to a 
     condition, circumstance, or practice reasonably expected to 
     cause death, serious illness, or severe injury to humans, or 
     substantial endangerment to private property or the 
     environment if no action is taken.

     SEC. 6. AVAILABILITY OF INFORMATION AMONG FEDERAL AGENCIES.

       Covered Federal agencies shall make existing databases and 
     information developed under this Act available to other 
     Federal agencies, subject to applicable confidentiality 
     requirements, for the purpose of meeting the requirements of 
     this Act. Within 15 months after the date of enactment of 
     this Act, the President shall issue guidelines for Federal 
     agencies to comply with this section.
               TITLE I--RISK ASSESSMENT AND COMMUNICATION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Risk Assessment and 
     Communication Act of 1995''.

     SEC. 102. PURPOSES.

       The purposes of this title are--
       (1) to present the public and executive branch with the 
     most scientifically objective and unbiased information 
     concerning the nature and magnitude of health, safety, and 
     environmental risks in order to provide for sound regulatory 
     decisions and public education;
       (2) to provide for full consideration and discussion of 
     relevant data and potential methodologies;
       (3) to require explanation of significant choices in the 
     risk assessment process which will allow for better peer 
     review and public understanding; and
       (4) to improve consistency within the executive branch in 
     preparing risk assessments and risk characterizations.

     SEC. 103. EFFECTIVE DATE; APPLICABILITY; SAVINGS PROVISIONS.

       (a) Effective Date.--Except as otherwise specifically 
     provided in this title, the provisions of this title shall 
     take effect 18 months after the date of enactment of this 
     title.
       (b) Applicability.--
       (1) In general.--Except as provided in paragraph (3), this 
     title applies to all significant risk assessment documents 
     and significant risk characterization documents, as defined 
     in paragraph (2).
       (2) Significant risk assessment document or significant 
     risk characterization document.--(A) As used in this title, 
     the terms ``significant risk assessment document'' and 
     ``significant risk characterization document'' include, at a 
     minimum, risk assessment documents or risk 
     characterization documents prepared by or on behalf of a 
     covered Federal agency in the implementation of a 
     regulatory program designed to protect human health, 
     safety, or the environment, used as a basis for one of the 
     items referred to in subparagraph (B), and--
       (i) included by the agency in that item; or
       (ii) inserted by the agency in the administrative record 
     for that item.
       (B) The items referred to in subparagraph (A) are the 
     following:
       (i) Any proposed or final major rule, including any 
     analysis or certification under title II, promulgated as part 
     of any Federal regulatory program designed to protect human 
     health, safety, or the environment.
       (ii) Any proposed or final environmental clean-up plan for 
     a facility or Federal guidelines for the issuance of any such 
     plan. As used in this clause, the term ``environmental clean-
     up'' means a corrective action under the Solid Waste Disposal 
     Act, a removal or remedial action under the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980, and any other environmental restoration and waste 
     management carried out by or on behalf of a covered Federal 
     agency with respect to any substance other than municipal 
     waste.
       (iii) Any proposed or final permit condition placing a 
     restriction on facility siting or operation under Federal 
     laws administered by the Environmental Protection Agency or 
     the Department of the Interior. Nothing in this section (iii) 
     shall apply to the requirements of section 404 of the Clean 
     Water Act.
       (iv) Any report to Congress.
       (v) Any regulatory action to place a substance on any 
     official list of carcinogens or toxic or hazardous substances 
     or to place a new health effects value on such list, 
     including the Integrated Risk Information System Database 
     maintained by the Environmental Protection Agency.
       (vi) Any guidance, including protocols of general 
     applicability, establishing policy regarding risk assessment 
     or risk characterization.
       (C) The terms ``significant risk assessment document'' and 
     ``significant risk characterization document'' shall also 
     include the following:
       (i) Any such risk assessment and risk characterization 
     documents provided by a covered Federal agency to the public 
     and which are likely to result in an annual increase in costs 
     of $25,000,000 or more.
       (ii) Environmental restoration and waste management carried 
     out by or on behalf of the Department of Defense with respect 
     to any substance other than municipal waste.
       (D) Within 15 months after the date of the enactment of 
     this Act, each covered Federal agency administering a 
     regulatory program designed to protect human health, safety, 
     or the environment shall promulgate a rule establishing those 
     additional categories, if any, of risk assessment and risk 
     characterization documents prepared by or on behalf 
     [[Page H2633]] of the covered Federal agency that the agency 
     will consider significant risk assessment documents or 
     significant risk characterization documents for purposes of 
     this title. In establishing such categories, the head of the 
     agency shall consider each of the following:
       (i) The benefits of consistent compliance by documents of 
     the covered Federal agency in the categories.
       (ii) The administrative burdens of including documents in 
     the categories.
       (iii) The need to make expeditious administrative decisions 
     regarding documents in the categories.
       (iv) The possible use of a risk assessment or risk 
     characterization in any compilation of risk hazards or health 
     or environmental effects prepared by an agency and commonly 
     made available to, or used by, any Federal, State, or local 
     government agency.
       (v) Such other factors as may be appropriate.
       (E)(i) Not later than 18 months after the date of the 
     enactment of this Act, the President, acting through the 
     Director of the Office of Management and Budget, shall 
     determine whether any other Federal agencies should be 
     considered covered Federal agencies for purposes of this 
     title. Such determination, with respect to a particular 
     Federal agency, shall be based on the impact of risk 
     assessment documents and risk characterization documents on--
       (I) regulatory programs administered by that agency; and
       (II) the communication of risk information by that agency 
     to the public.
     The effective date of such a determination shall be no later 
     than 6 months after the date of the determination.
       (ii) Not later than 15 months after the President, acting 
     through the Director of the Office of Management and Budget, 
     determines pursuant to clause (i) that a Federal agency 
     should be considered a covered Federal agency for purposes of 
     this title, the head of that agency shall promulgate a rule 
     pursuant to subparagraph (D) to establish additional 
     categories of risk assessment and risk characterization 
     documents described in that subparagraph.
       (3) Exceptions.--(A) This title does not apply to risk 
     assessment or risk characterization documents containing risk 
     assessments or risk characterizations performed with respect 
     to the following:
       (i) A screening analysis, where appropriately labeled as 
     such, including a screening analysis for purposes of product 
     regulation or premanufacturing notices.
       (ii) Any health, safety, or environmental inspections.
       (iii) The sale or lease of Federal resources or regulatory 
     activities that directly result in the collection of Federal 
     receipts.
       (B) No analysis shall be treated as a screening analysis 
     for purposes of subparagraph (A) if the results of such 
     analysis are used as the basis for imposing restrictions on 
     substances or activities.
       (C) The risk assessment principle set forth in section 
     104(b)(1) need not apply to any risk assessment or risk 
     characterization document described in clause (iii) of 
     paragraph (2)(B). The risk characterization and communication 
     principle set forth in section 105(4) need not apply to any 
     risk assessment or risk characterization document described 
     in clause (v) or (vi) of paragraph (2)(B).
       (c) Savings Provisions.--The provisions of this title shall 
     be supplemental to any other provisions of law relating to 
     risk assessments and risk characterizations, except that 
     nothing in this title shall be construed to modify any 
     statutory standard or statutory requirement designed to 
     protect health, safety, or the environment. Nothing in this 
     title shall be interpreted to preclude the consideration of 
     any data or the calculation of any estimate to more fully 
     describe risk or provide examples of scientific uncertainty 
     or variability. Nothing in this title shall be construed to 
     require the disclosure of any trade secret or other 
     confidential information.

     SEC. 104. PRINCIPLES FOR RISK ASSESSMENT.

       (a) In General.--The head of each covered Federal agency 
     shall apply the principles set forth in subsection (b) in 
     order to assure that significant risk assessment documents 
     and all of their components distinguish scientific findings 
     from other considerations and are, to the extent feasible, 
     scientifically objective, unbiased, and inclusive of all 
     relevant data and rely, to the extent available and 
     practicable, on scientific findings. Discussions or 
     explanations required under this section need not be repeated 
     in each risk assessment document as long as there is a 
     reference to the relevant discussion or explanation in 
     another agency document which is available to the public.
       (b) Principles.--The principles to be applied are as 
     follows:
       (1) When discussing human health risks, a significant risk 
     assessment document shall contain a discussion of both 
     relevant laboratory and relevant epidemiological data of 
     sufficient quality which finds, or fails to find, a 
     correlation between health risks and a potential toxin or 
     activity. Where conflicts among such data appear to exist, or 
     where animal data is used as a basis to assess human health, 
     the significant risk assessment document shall, to the extent 
     feasible and appropriate, include discussion of possible 
     reconciliation of conflicting information, and as relevant, 
     differences in study designs, comparative physiology, routes 
     of exposure, bioavailability, pharmacokinetics, and any other 
     relevant factor, including the sufficiency of basic data for 
     review. The discussion of possible reconciliation should 
     indicate whether there is a biological basis to assume a 
     resulting harm in humans. Animal data shall be reviewed with 
     regard to its relevancy to humans.
       (2) Where a significant risk assessment document involves 
     selection of any significant assumption, inference, or model, 
     the document shall, to the extent feasible--
       (A) present a representative list and explanation of 
     plausible and alternative assumptions, inferences, or models;
       (B) explain the basis for any choices;
       (C) identify any policy or value judgments;
       (D) fully describe any model used in the risk assessment 
     and make explicit the assumptions incorporated in the model; 
     and
       (E) indicate the extent to which any significant model has 
     been validated by, or conflicts with, empirical data.

     SEC. 105. PRINCIPLES FOR RISK CHARACTERIZATION AND 
                   COMMUNICATION.

       Each significant risk characterization document shall meet 
     each of the following requirements:
       (1) Estimates of risk.--The risk characterization shall 
     describe the populations or natural resources which are the 
     subject of the risk characterization. If a numerical estimate 
     of risk is provided, the agency shall, to the extent 
     feasible, provide--
       (A) the best estimate or estimates for the specific 
     populations or natural resources which are the subject of the 
     characterization (based on the information available to the 
     Federal agency); and
       (B) a statement of the reasonable range of scientific 
     uncertainties.

     In addition to such best estimate or estimates, the risk 
     characterization document may present plausible upper-bound 
     or conservative estimates in conjunction with plausible lower 
     bounds estimates. Where appropriate, the risk 
     characterization document may present, in lieu of a single 
     best estimate, multiple best estimates based on assumptions, 
     inferences, or models which are equally plausible, given 
     current scientific understanding. To the extent practical and 
     appropriate, the document shall provide descriptions of the 
     distribution and probability of risk estimates to reflect 
     differences in exposure variability or sensitivity in 
     populations and attendant uncertainties. Sensitive 
     subpopulations or highly exposed subpopulations include, 
     where relevant and appropriate, children, the elderly, 
     pregnant women, and disabled persons.
       (2) Exposure scenarios.--The risk characterization document 
     shall explain the exposure scenarios used in any risk 
     assessment, and, to the extent feasible, provide a statement 
     of the size of the corresponding population at risk and the 
     likelihood of such exposure scenarios.
       (3) Comparisons.--The document shall contain a statement 
     that places the nature and magnitude of risks to human 
     health, safety, or the environment in context. Such statement 
     shall, to the extent feasible, provide comparisons with 
     estimates of greater, lesser, and substantially equivalent 
     risks that are familiar to and routinely encountered by the 
     general public as well as other risks, and, where appropriate 
     and meaningful, comparisons of those risks with other similar 
     risks regulated by the Federal agency resulting from 
     comparable activities and exposure pathways. Such comparisons 
     should consider relevant distinctions among risks, such as 
     the voluntary or involuntary nature of risks and the 
     preventability or nonpreventability of risks.
       (4) Substitution risks.--Each significant risk assessment 
     or risk characterization document shall include a statement 
     of any significant substitution risks to human health, where 
     information on such risks has been provided to the agency.
       (5) Summaries of other risk estimates.--If--
       (A) a commenter provides a covered Federal agency with a 
     relevant risk assessment document or a risk characterization 
     document, and a summary thereof, during a public comment 
     provided by the agency for a significant risk assessment 
     document or a significant risk characterization document, or, 
     where no comment period is provided but a commenter provides 
     the covered Federal agency with the relevant risk assessment 
     document or risk characterization document, and a summary 
     thereof, in a timely fashion, and
       (B) the risk assessment document or risk characterization 
     document is consistent with the principles and the guidance 
     provided under this title,

     the agency shall, to the extent feasible, present such 
     summary in connection with the presentation of the agency's 
     significant risk assessment document or significant risk 
     characterization document. Nothing in this paragraph shall be 
     construed to limit the inclusion of any comments or material 
     supplied by any person to the administrative record of any 
     proceeding.

     A document may satisfy the requirements of paragraph (3), (4) 
     or (5) by reference to information or material otherwise 
     available to the public if the document provides a brief 
     summary of such information or material.

     SEC. 106. RECOMMENDATIONS OR CLASSIFICATIONS BY A NON-UNITED 
                   STATES-BASED ENTITY.

       No covered Federal agency shall automatically incorporate 
     or adopt any recommendation or classification made by a non-
     United 
     [[Page H2634]] States-based entity concerning the health 
     effects value of a substance without an opportunity for 
     notice and comment, and any risk assessment document or risk 
     characterization document adopted by a covered Federal agency 
     on the basis of such a recommendation or classification shall 
     comply with the provisions of this title. For the purposes of 
     this section, the term ``non-United States-based entity'' 
     means--
       (1) any foreign government and its agencies;
       (2) the United Nations or any of its subsidiary 
     organizations;
       (3) any other international governmental body or 
     international standards-making organization; or
       (4) any other organization or private entity without a 
     place of business located in the United States or its 
     territories.

     SEC. 107. GUIDELINES AND REPORT.

       (a) Guidelines.--Within 15 months after the date of 
     enactment of this title, the President shall issue guidelines 
     for Federal agencies consistent with the risk assessment and 
     characterization principles set forth in sections 104 and 105 
     and shall provide a format for summarizing risk assessment 
     results. In addition, such guidelines shall include guidance 
     on at least the following subjects: criteria for scaling 
     animal studies to assess risks to human health; use of 
     different types of dose-response models; thresholds; 
     definitions, use, and interpretations of the maximum 
     tolerated dose; weighting of evidence with respect to 
     extrapolating human health risks from sensitive species; 
     evaluation of benign tumors, and evaluation of different 
     human health endpoints.
       (b) Report.--Within 3 years after the enactment of this 
     title, each covered Federal agency shall provide a report to 
     the Congress evaluating the categories of policy and value 
     judgments identified under subparagraph (C) of section 
     104(b)(2).
       (c) Public Comment and Consultation.--The guidelines and 
     report under this section, shall be developed after notice 
     and opportunity for public comment, and after consultation 
     with representatives of appropriate State, local, and tribal 
     governments, and such other departments and agencies, 
     offices, organizations, or persons as may be advisable.
       (d) Review.--The President shall review and, where 
     appropriate, revise the guidelines published under this 
     section at least every 4 years.

     SEC. 108. RESEARCH AND TRAINING IN RISK ASSESSMENT.

       (a) Evaluation.--The head of each covered agency shall 
     regularly and systematically evaluate risk assessment 
     research and training needs of the agency, including, where 
     relevant and appropriate, the following:
       (1) Research to reduce generic data gaps, to address 
     modelling needs (including improved model sensitivity), and 
     to validate default options, particularly those common to 
     multiple risk assessments.
       (2) Research leading to improvement of methods to quantify 
     and communicate uncertainty and variability among 
     individuals, species, populations, and, in the case of 
     ecological risk assessment, ecological communities.
       (3) Emerging and future areas of research, including 
     research on comparative risk analysis, exposure to multiple 
     chemicals and other stressors, noncancer endpoints, 
     biological markers of exposure and effect, mechanisms of 
     action in both mammalian and nonmammalian species, dynamics 
     and probabilities of physiological and ecosystem exposures, 
     and prediction of ecosystem-level responses.
       (4) Long-term needs to adequately train individuals in risk 
     assessment and risk assessment application. Evaluations under 
     this paragraph shall include an estimate of the resources 
     needed to provide necessary training.
       (b) Strategy and Actions To Meet Identified Needs.--The 
     head of each covered agency shall develop a strategy and 
     schedule for carrying out research and training to meet the 
     needs identified in subsection (a).
       (c) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the head of each covered agency shall 
     submit to the Congress a report on the evaluations conducted 
     under subsection (a) and the strategy and schedule developed 
     under subsection (b). The head of each covered agency shall 
     report to the Congress periodically on the evaluations, 
     strategy, and schedule.

     SEC. 109. STUDY OF COMPARATIVE RISK ANALYSIS.

       (a) In General.--(1) The Director of the Office of 
     Management and Budget, in consultation with the Office of 
     Science and Technology Policy, shall conduct, or provide for 
     the conduct of, a study using comparative risk analysis to 
     rank health, safety, and environmental risks and to provide a 
     common basis for evaluating strategies for reducing or 
     preventing those risks. The goal of the study shall be to 
     improve methods of comparative risk analysis.
       (2) Not later than 90 days after the date of the enactment 
     of this Act, the Director, in collaboration with the heads of 
     appropriate Federal agencies, shall enter into a contract 
     with the National Research Council to provide technical 
     guidance on approaches to using comparative risk analysis and 
     other considerations in setting health, safety, and 
     environmental risk reduction priorities.
       (b) Scope of Study.--The study shall have sufficient scope 
     and breadth to evaluate comparative risk analysis and to test 
     approaches for improving comparative risk analysis and its 
     use in setting priorities for health, safety, and 
     environmental risk reduction. The study shall compare and 
     evaluate a range of diverse health, safety, and environmental 
     risks.
       (c) Study Participants.--In conducting the study, the 
     Director shall provide for the participation of a range of 
     individuals with varying backgrounds and expertise, both 
     technical and nontechnical, comprising broad representation 
     of the public and private sectors.
       (d) Duration.--The study shall begin within 180 days after 
     the date of the enactment of this Act and terminate within 2 
     years after the date on which it began.
       (e) Recommendations for Improving Comparative Risk Analysis 
     and Its Use.--Not later than 90 days after the termination of 
     the study, the Director shall submit to the Congress the 
     report of the National Research Council with recommendations 
     regarding the use of comparative risk analysis and ways to 
     improve the use of comparative risk analysis for decision-
     making in appropriate Federal agencies.

     SEC. 110. DEFINITIONS.

       For purposes of this title:
       (1) Risk assessment document.--The term ``risk assessment 
     document'' means a document containing the explanation of how 
     hazards associated with a substance, activity, or condition 
     have been identified, quantified, and assessed. The term also 
     includes a written statement accepting the findings of any 
     such document.
       (2) Risk characterization document.--The term ``risk 
     characterization document'' means a document quantifying or 
     describing the degree of toxicity, exposure, or other risk 
     posed by hazards associated with a substance, activity, or 
     condition to which individuals, populations, or resources are 
     exposed. The term also includes a written statement accepting 
     the findings of any such document.
       (3) Best estimate.--The term ``best estimate'' means a 
     scientifically appropriate estimate which is based, to the 
     extent feasible, on one of the following:
       (A) Central estimates of risk using the most plausible 
     assumptions.
       (B) An approach which combines multiple estimates based on 
     different scenarios and weighs the probability of each 
     scenario.
       (C) Any other methodology designed to provide the most 
     unbiased representation of the most plausible level of risk, 
     given the current scientific information available to the 
     Federal agency concerned.
       (4) Substitution risk.--The term ``substitution risk'' 
     means a potential risk to human health, safety, or the 
     environment from a regulatory alternative designed to 
     decrease other risks.
       (5) Covered federal agency.--The term ``covered Federal 
     agency'' means each of the following:
       (A) The Environmental Protection Agency.
       (B) The Occupational Safety and Health Administration.
       (C) The Department of Transportation (including the 
     National Highway Transportation Safety Administration).
       (D) The Food and Drug Administration.
       (E) The Department of Energy.
       (F) The Department of the Interior.
       (G) The Department of Agriculture.
       (H) The Consumer Product Safety Commission.
       (I) The National Oceanic and Atmospheric Administration
       (J) The United States Army Corps of Engineers.
       (K) The Mine Safety and Health Administration.
       (L) The Nuclear Regulatory Commission.
       (M) Any other Federal agency considered a covered Federal 
     agency pursuant to section 103(b)(2)(E).
       (6) Federal agency.--The term ``Federal agency'' means an 
     executive department, military department, or independent 
     establishment as defined in part I of title 5 of the United 
     States Code, except that such term also includes the Office 
     of Technology Assessment.
       (7) Document.--The term ``document'' includes material 
     stored in electronic or digital form.
        TITLE II--ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS

     SEC. 201. ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS.

       (a) In General.--The President shall require each Federal 
     agency to prepare the following for each major rule within a 
     program designed to protect human health, safety, or the 
     environment that is proposed or promulgated by the agency 
     after the date of enactment of this Act:
       (1) An identification of reasonable alternative strategies, 
     including strategies that--
       (A) require no government action;
       (B) will accommodate differences among geographic regions 
     and among persons with different levels of resources with 
     which to comply; and
       (C) employ performance or other market-based mechanisms 
     that permit the greatest flexibility in achieving the 
     identified benefits of the rule.

     The agency shall consider reasonable alternative strategies 
     proposed during the comment period.
       (2) An analysis of the incremental costs and incremental 
     risk reduction or other benefits associated with each 
     alternative strategy identified or considered by the agency. 
     Costs and benefits shall be quantified to the 
     [[Page H2635]] extent feasible and appropriate and may 
     otherwise be qualitatively described.
       (3) A statement that places in context the nature and 
     magnitude of the risks to be addressed and the residual risks 
     likely to remain for each alternative strategy identified or 
     considered by the agency. Such statement shall, to the extent 
     feasible, provide comparisons with estimates of greater, 
     lesser, and substantially equivalent risks that are familiar 
     to and routinely encountered by the general public as well as 
     other risks, and, where appropriate and meaningful, 
     comparisons of those risks with other similar risks regulated 
     by the Federal agency resulting from comparable activities 
     and exposure pathways. Such comparisons should consider 
     relevant distinctions among risks, such as the voluntary or 
     involuntary nature of risks and the preventability or 
     nonpreventability of risks.
       (4) For each final rule, an analysis of whether the 
     identified benefits of the rule are likely to exceed the 
     identified costs of the rule.
       (5) An analysis of the effect of the rule--
       (A) on small businesses with fewer than 100 employees;
       (B) on net employment; and
       (C) to the extent practicable, on the cumulative financial 
     burden of compliance with the rule and other existing 
     regulations on persons producing products.
       (b) Publication.--For each major rule referred to in 
     subsection (a) each Federal agency shall publish in a clear 
     and concise manner in the Federal Register along with the 
     proposed and final regulation, or otherwise make publicly 
     available, the information required to be prepared under 
     subsection (a).

     SEC. 202. DECISION CRITERIA.

       (a) In General.--No final rule subject to the provisions of 
     this title shall be promulgated unless the agency certifies 
     the following:
       (1) That the analyses under section 201 are based on 
     objective and unbiased scientific and economic evaluations of 
     all significant and relevant information and risk assessments 
     provided to the agency by interested parties relating to the 
     costs, risks, and risk reduction and other benefits addressed 
     by the rule.
       (2) That the incremental risk reduction or other benefits 
     of any strategy chosen will be likely to justify, and be 
     reasonably related to, the incremental costs incurred by 
     State, local, and tribal governments, the Federal Government, 
     and other public and private entities.
       (3) That other alternative strategies identified or 
     considered by the agency were found either (A) to be less 
     cost-effective at achieving a substantially equivalent 
     reduction in risk, or (B) to provide less flexibility to 
     State, local, or tribal governments or regulated entities in 
     achieving the otherwise applicable objectives of the 
     regulation, along with a brief explanation of why alternative 
     strategies that were identified or considered by the agency 
     were found to be less cost-effective or less flexible.
       (b) Effect of Decision Criteria.--
       (1) In general.--Notwithstanding any other provision of 
     Federal law, the decision criteria of subsection (a) shall 
     supplement and, to the extent there is a conflict, supersede 
     the decision criteria for rulemaking otherwise applicable 
     under the statute pursuant to which the rule is promulgated.
       (2) Substantial evidence.--Notwithstanding any other 
     provision of Federal law, no major rule shall be promulgated 
     by any Federal agency pertaining to the protection of health, 
     safety, or the environment unless the requirements of section 
     201 and subsection (a) are met and the certifications 
     required therein are supported by substantial evidence of the 
     rulemaking record.
       (c) Publication.--The agency shall publish in the Federal 
     Register, along with the final regulation, the certifications 
     required by subsection (a).
       (d) Notice.--Where the agency finds a conflict between the 
     decision criteria of this section and the decision criteria 
     of an otherwise applicable statute, the agency shall so 
     notify the Congress in writing.

     SEC. 203. OFFICE OF MANAGEMENT AND THE BUDGET GUIDANCE.

       The Office of Management and Budget shall issue guidance 
     consistent with this title--
       (1) to assist the agencies, the public, and the regulated 
     community in the implementation of this title, including any 
     new requirements or procedures needed to supplement prior 
     agency practice; and
       (2) governing the development and preparation of analyses 
     of risk reduction benefits and costs.

     SEC. 204. ENVIRONMENTAL CLEAN-UP.

       For purposes of this title, any determination by a Federal 
     agency to approve or reject any proposed or final 
     environmental clean-up plan for a facility the costs of which 
     are likely to exceed $5,000,000 shall be treated as major 
     rule subject to the provisions of this title (other than the 
     provisions of section 201(a)(5)). As used in this section, 
     the term ``environmental clean-up'' means a corrective action 
     under the Solid Waste Disposal Act, a remedial action under 
     the Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980, and any other environmental 
     restoration and waste management carried out by or on behalf 
     of a Federal agency with respect to any substance other than 
     municipal waste.
                         TITLE III--PEER REVIEW

     SEC. 301. PEER REVIEW PROGRAM.

       (a) Establishment.--For regulatory programs designed to 
     protect human health, safety, or the environment, the head of 
     each Federal agency shall develop a systematic program for 
     independent and external peer review required by subsection 
     (b). Such program shall be applicable across the agency and--
       (1) shall provide for the creation of peer review panels 
     consisting of experts and shall be broadly representative and 
     balanced and to the extent relevant and appropriate, may 
     include representatives of State, local, and tribal 
     governments, small businesses, other representatives of 
     industry, universities, agriculture, labor, consumers, 
     conservation organizations, or other public interest groups 
     and organizations;
       (2) may provide for differing levels of peer review and 
     differing numbers of experts on peer review panels, depending 
     on the significance or the complexity of the problems or the 
     need for expeditiousness;
       (3) shall not exclude peer reviewers with substantial and 
     relevant expertise merely because they represent entities 
     that may have a potential interest in the outcome, provided 
     that interest is fully disclosed to the agency and in the 
     case of a regulatory decision affecting a single entity, no 
     peer reviewer representing such entity may be included on the 
     panel;
       (4) may provide specific and reasonable deadlines for peer 
     review panels to submit reports under subsection (c); and
       (5) shall provide adequate protections for confidential 
     business information and trade secrets, including requiring 
     peer reviewers to enter into confidentiality agreements.
       (b) Requirement for Peer Review.--In connection with any 
     rule that is likely to result in an annual increase in costs 
     of $100,000,000 or more (other than any rule or other action 
     taken by an agency to authorize or approve any individual 
     substance or product), each Federal agency shall provide for 
     peer review in accordance with this section of any risk 
     assessment or cost analysis which forms the basis for such 
     rule or of any analysis under section 201(a). In addition, 
     the Director of the Office of Management and Budget may order 
     that peer review be provided for any major risk assessment or 
     cost assessment that is likely to have a significant impact 
     on public policy decisions.
       (c) Contents.--Each peer review under this section shall 
     include a report to the Federal agency concerned with respect 
     to the scientific and economic merit of data and methods used 
     for the assessments and analyses.
       (d) Response to Peer Review.--The head of the Federal 
     agency shall provide a written response to all significant 
     peer review comments.
       (e) Availability to Public.--All peer review comments or 
     conclusions and the agency's responses shall be made 
     available to the public and shall be made part of the 
     administrative record.
       (f) Previously Reviewed Data and Analysis.--No peer review 
     shall be required under this section for any data or method 
     which has been previously subjected to peer review or for any 
     component of any analysis or assessment previously subjected 
     to peer review.
       (g) National Panels.--The President shall appoint National 
     Peer Review Panels to annually review the risk assessment and 
     cost assessment practices of each Federal agency for programs 
     designed to protect human health, safety, or the environment. 
     The Panel shall submit a report to the Congress no less 
     frequently than annually containing the results of such 
     review.
                       TITLE IV--JUDICIAL REVIEW

     SEC. 401. JUDICIAL REVIEW.

       Compliance or noncompliance by a Federal agency with the 
     requirements of this Act shall be reviewable pursuant to the 
     statute granting the agency authority to act or, as 
     applicable, that statute and the Administrative Procedure 
     Act. The court with jurisdiction to review final agency 
     action under the statute granting the agency authority to act 
     shall have jurisdiction to review, at the same time, the 
     agency's compliance with the requirements of this Act. When a 
     significant risk assessment document or risk characterization 
     document subject to title I is part of the administrative 
     record in a final agency action, in addition to any other 
     matters that the court may consider in deciding whether the 
     agency's action was lawful, the court shall consider the 
     agency action unlawful if such significant risk assessment 
     document or significant risk characterization document does 
     not substantially comply with the requirements of sections 
     104 and 105.
                             TITLE V--PLAN

     SEC. 501. PLAN FOR ASSESSING NEW INFORMATION.

       (a) Plan.--Within 18 months after the date of enactment of 
     this Act, each covered Federal agency (as defined in title I) 
     shall publish a plan to review and, where appropriate revise 
     any significant risk assessment document or significant risk 
     characterization document published prior to the expiration 
     of such 18-month period if, based on information available at 
     the time of such review, the agency head determines that the 
     application of the principles set forth in sections 104 and 
     105 would be likely to significantly alter the results of the 
     prior risk assessment or risk characterization. The plan 
     shall provide procedures for receiving and considering new 
     information and risk assessments from the 
     [[Page H2636]] public. The plan may set priorities and 
     procedures for review and, where appropriate, revision of 
     such risk assessment documents and risk characterization 
     documents and of health or environmental effects values. The 
     plan may also set priorities and procedures for review, and, 
     where appropriate, revision or repeal of major rules 
     promulgated prior to the expiration of such period. Such 
     priorities and procedures shall be based on the potential to 
     more efficiently focus national economic resources within 
     Federal regulatory programs designed to protect human health, 
     safety, or the environment on the most important priorities 
     and on such other factors as such Federal agency considers 
     appropriate.
       (b) Public Comment and Consultation.--The plan under this 
     section, shall be developed after notice and opportunity for 
     public comment, and after consultation with representatives 
     of appropriate State, local, and tribal governments, and such 
     other departments and agencies, offices, organizations, or 
     persons as may be advisable.
                          TITLE VI--PRIORITIES

     SEC. 601. PRIORITIES.

       (a) Identification of Opportunities.--In order to assist in 
     the public policy and regulation of risks to public health, 
     the President shall identify opportunities to reflect 
     priorities within existing Federal regulatory programs 
     designed to protect human health in a cost-effective and 
     cost-reasonable manner. The President shall identify each of 
     the following:
       (1) The likelihood and severity of public health risks 
     addressed by current Federal programs.
       (2) The number of individuals affected.
       (3) The incremental costs and risk reduction benefits 
     associated with regulatory or other strategies.
       (4) The cost-effectiveness of regulatory or other 
     strategies to reduce risks to public health.
       (5) Intergovernmental relationships among Federal, State, 
     and local governments among programs designed to protect 
     public health.
       (6) Statutory, regulatory, or administrative obstacles to 
     allocating national economic resources based on the most 
     cost-effective, cost-reasonable priorities considering 
     Federal, State, and local programs.
       (b) State, Local, and Tribal Priorities.--In identifying 
     national priorities, the President shall consider priorities 
     developed and submitted by State, local, and tribal 
     governments.
       (c) Biennial Reports.--The President shall issue biennial 
     reports to Congress, after notice and opportunity for public 
     comment, to recommend priorities for modifications to, 
     elimination of, or strategies for existing Federal regulatory 
     programs designed to protect public health. Within 6 months 
     after the issuance of the report, the President shall notify 
     the Congress in writing of the recommendations which can be 
     implemented without further legislative changes and the 
     agency shall consider the priorities set forth in the report 
     and priorities developed and submitted by State, local, and 
     tribal governments when preparing a budget or strategic plan 
     for any such regulatory program.

  The SPEAKER pro tempore. Pursuant to section 2 of House Resolution 
101, the previous question is ordered on the motion to amend and on the 
bill.
  The previous question was ordered.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas [Mr. DeLay].
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


                motion to recommit offered by mr. spratt

  Mr. SPRATT. Mr. Speaker, I offer a motion to recommit.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. SPRATT. In its present form I am, Mr. Speaker.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Spratt moves to recommit the bill H.R. 9 to the 
     Committee on Science with instructions to report the same 
     back to the House forthwith with the following amendment:
       In Division D of H.R. 9, consisting of the text of H.R. 
     1022, as passed by the House, strike the following text:
       ``Section 204. Environmental Clean-up.
       ``For the purposes of this title, any determination by a 
     Federal agency to approve or reject any proposed or final 
     environmental clean-up plan for a facility the costs of which 
     are likely to exceed $5,000,000 shall be treated as a major 
     rule subject to the provisions of this title (other than the 
     provisions of section 205(a)(5)). As used in this section, 
     ``environmental clean-up'' means a corrective action under 
     the Solid Waste Disposal Act, a remedial action under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980, and any other environmental 
     restoration and waste management carried out by or on behalf 
     of a Federal agency with respect to any substance other than 
     municipal waste.''

  Mr. DeLAY (during the reading). Mr. Speaker, I ask unanimous consent 
that the motion to recommit be considered as read and printed in the 
Record.
  The CHAIRMAN. Is there objection to the request of the gentleman from 
Texas?
  There was no objection.
  The SPEAKER pro tempore. The gentleman from South Carolina [Mr. 
Spratt] is recognized for 5 minutes.
  Mr. SPRATT. Mr. Speaker, in the waning minutes of debate on H.R. 
1022, the Risk Assessment and Cost-Benefit Analysis Act, Mr. Walker 
offered a final amendment which was barely considered at all because we 
had run out of time. The Walker amendment then passed on a voice vote. 
This amendment expands the scope of H.R. 1022 far beyond what I think 
most Members appreciated, because there was no time to explain it when 
it came before us.
  Basically, this Walker amendment provides that when any Federal 
agency approves or rejects any environmental cleanup plan, and the 
costs of the clean up plan will exceed $5 million, then the Risk 
Assessment Cost-Benefit Act is triggered. What in turn that means is 
that a full-blown risk assessment and cost-benefit analysis is required 
before the agency can move forward with the plan. If the benefits do 
not exceed the costs under the act, then the plan cannot be carried 
forward.
  What is the environmental cleanup plan, a $5 million cleanup plan? 
First of all, the amendment says an environmental cleanup plan is any 
corrective action taken under CERCLA, the Superfund Act, or under the 
Solid Waste Disposal Act. That is the first application of it.
  Mr. Speaker, I think we all agree that CERCLA or Superfund has taken 
too much time and involved too many lawyers. If we allow this amendment 
to stand in this bill, then we have just found another way to take more 
time and involve more lawyers, and I do not think that is the direction 
we want to move in. That is enough of a problem with the amendment.
  But it goes beyond that, because it also says an environmental clean 
up decision is ``any other environmental restoration and waste 
management carried out on behalf of a Federal agency with respect to 
any substance other than municipal waste.'' So this amendment applies 
to any environmental restoration decision taken with respect to a 
Federal facility and any waste management decision. That is Clean Water 
Act disposal, even Clean Air Act disposal problems. What does this 
mean?
  All DOE facilities, Department of Energy facilities scattered across 
17 States, from Savannah River to Oak Ridge, TN to Rocky Flats, to 
Hanford, WA, there is an enormous array of cleanup problems that could 
cost billions upon billions of approximate dollars, approximate, that 
have been accumulated over 50 years, toxic waste, hazardous waste, and 
very, very dangerous radioactive waste.
  This amendment means that the Department of Energy does not have to 
deal with these nuclear and toxic waste problems if the cost-benefit 
analysis does not show the benefits will exceed costs.
  This means that these problems, which have been overlooked and 
delayed for 50 years, will have to go through further delay because 
before DOE can do anything with respect to them, they have to put them 
through risk assessment and cost-benefit analysis. And this means that 
the risk assessment/cost-benefit analysis track becomes preempted.
  Each one of these 17 sites now in the DOE complex now has a 
complicated, difficult negotiation ongoing with the State regulatory 
authorities, and most of them have compliance agreements. The States 
are no longer involved. what rules is risk assessment and cost-benefit 
analysis. At Hanford, at Rocky Flats, at Savannah River, all across the 
country.
  The Department of Defense also has major cleanup decisions to make 
with respect to all the bases it closes. In fact, when we adopted the 
Base Closing Act, we said you cannot close a base and leave it and turn 
it over to local communities or new developers until you have resolved 
all the environmental cleanup problems.
  [[Page H2637]] Now the Department of Defense must add on to the time 
delays it is already experiencing the additional burden of doing cost-
benefit analysis. If the cost-benefit analysis does not show the 
benefits will exceed the costs, then DOD will simply leave those 
problems unattended. They have been immunized by this bill if the 
benefits do not exceed the costs, leave them unattended, turn them over 
to a local community, and then guess what? The next landowner inherits 
the property with the sites there, but without immunity.
  If that is not enough, this also applies to waste management. The 
word ``waste management'' is used. Waste management does not mean 
environmental problems that have accumulated through neglect or 
ignorance of the law over the past years. It means management of 
ongoing waste streams, waste water emissions into streams. This means 
DOD, DOE, and others that discharge in a waste management scheme, do 
not have to comply with waste management decisions unless the benefits 
can be proven to exceed the costs.
  Now, we do not know all the ramifications of this provision, but 
think a few things are clear. This is not good law; it was made too 
hastily, it is ill-considered, ill-conceived, and should be stricken 
from the bill. Let us start over.
  Mr. BROWN of California. Mr. Speaker, on February 28, in the waning 
minutes of the debate on the Risk Assessment and Cost-Benefit Act, H.R. 
1022, the House added 17 short lines that potentially do a lot of 
damage. In adopting the Walker amendment, we have classified virtually 
every proposed or final environmental cleanup plan for a facility as a 
major rule subject to all the exacting provisions of the act.
  This is yet another instance where, in our rush to pass legislation 
that improves the regulatory process, we have unnecessarily created a 
bigger mess than we started with.
  Earlier in the debate we dramatically shrunk agency emergency 
exemption powers to get out from under this burden. Under the Walker 
amendment, we have dramatically reduced the dollar limit. The 
combination of these two provisions will end environmental enforcement 
as we know it to the detriment of anyone who lives near a site which 
could benefit from a federally aided cleanup. It also will be the last 
straw for many who would consider rehabbing industrial and Government 
sites to provide badly needed jobs.
  Not all of the ramifications of this provision are known, but this we 
do know: First, it is going to cost a great deal more time and money to 
clean up a brownfield site and make it economically useful.
  Second, any unemployed regulatory lawyers or environmental lawyers 
should be shouting hallelujah because they can prolong in court most 
facility cleanups under the Clean Air Act, the Clean Water Act, the 
Superfund law, the Department of Defense cleanup programs, and the 
Department of Energy cleanups.
  Third, anyone in the business of doing environmental studies is set 
for life.
  Fourth, since cleanups are now to be based strictly on cost-benefit 
analyses, States rights to participate in the process and the needs and 
preferences of local communities no longer matter.
  Since this provision applies to every agency of the Federal 
Government, we do not know what else has been swept up. What is the 
effect on the Coast Guard, on FEMA, on the Nuclear Regulatory 
Commission, on our international commitments? No one knows.
  Once again we have rushed through an amendment without thinking, 
without hearings, and without understanding the consequences of our 
actions. Let's recommit this bill with instructions so that we can 
avoid the economic and environmental harm that we will otherwise 
inadvertently spread throughout the country.
  I urge my colleagues to vote for the motion to recommit.
  Mr. MINETA. Mr. Speaker, I rise in strong support of the motion to 
recommit.
  Mr. Speaker, the motion would direct the deletion of the Walker 
amendment on environmental cleanup. Rarely has such an ill-considered 
provision been added to legislation with so little discussion of its 
broad consequences.
  Let me talk about the broad consequences of the amendment. This 
amendment will greatly delay environmental cleanups, undercut community 
participation in determining the level of cleanup, preempt States, and 
slow down the base closure and transfer process. I don't believe we 
should support any of those results.
  What is the major complaint we have heard about Superfund? It takes 
too long to achieve cleanup and it is a field day for lawyers.
  Let me be clear, adding the entire cost-benefit and risk analysis 
provisions of this bill on top of the current requirements of Superfund 
will surely delay cleanups. The law today precludes parties from 
delaying cleanup through court action. Don't forget that this bill also 
allows for judicial review of agency decisions. Lawyers will have the 
time of their lives and delay cleanups for years.
  Delaying cleanups will have nothing but disastrous effects on the 
cost of cleanups. Although the proponents of the bill think they are 
reducing costs, this bill could result in greatly increased costs with 
less protection to show for it. The human cost through additional time 
of exposure is immeasurable, but we can measure the additional cost of 
cleanup which will occur if contaminants are allowed to migrate while 
the cleanup decision is tied up in court. I cannot support additional 
work for lawyers while human health is endangered and costs are 
increasing.
  In addition, because this bill also applies to Department of Defense 
cleanups, the entire base closure process will be brought to its knees. 
What is the most important issue to local governments in the base 
closure process? Getting the property out of Federal ownership and into 
productive use. The Walker amendment will delay that process for years.
  The Walker amendment preempts State and local governments from any 
effective role in determining cleanups. Currently, Federal cleanups are 
required to consider State laws and local preferences. The amendment 
overlays a Federal cost-benefit test over any local preference.
  This could lead to less protective standards in direct contravention 
to local desires. Local input on long-term protectiveness, 
redevelopment considerations, and preservation of local amenities will 
fall silent in the face of cost considerations, even if the State or 
local government is willing to pay for them.
  If you favor further delays in environmental cleanup; if you favor 
creating another new issue for lawyers to fight about in court; if you 
favor delaying the transfer of closed military installations to the 
local government; if you favor increasing the cost of cleanup; if you 
favor preempting the States in protecting their citizens; if you favor 
ignoring the desires of local government in addressing cleanups, then 
you can vote ``no.''
  But if you want to look out for the interests of your constituents 
and the interests of State and local governments, you should support 
the motion to recommit.
  The SPEAKER pro tempore. The gentleman from Texas [Mr. DeLay] is 
recognized for 5 minutes in opposition to the motion to recommit.
  Mr. DeLAY. Mr. Speaker, I rise in opposition to this motion to 
recommit, and in support of H.R. 9.
  Over the last week, in a bipartisan fashion, the House has taken a 
dramatic step in favor of the American people. We have finally started 
the process of freeing small business, of protecting private property 
owners, of inserting some sanity into our rulemaking process.
  Today, with H.R. 9, we put the Federal Government on notice: Don't 
tread unfairly on the American taxpayer.
  As we all know, over the last several decades, the Federal Government 
has run roughshod over the American people. We have taxed them. We have 
taken their land. We have taken their businesses.
  In this last election, the people said enough. They voted out 
incumbents in huge numbers, and threw out the leadership in both Houses 
of Congress for the first time in 40 years.
  This 104th Congress has been called a second American revolution.
  H.R. 9 is an important battle in the second American revolution.
  If you are for real change and real reform, you will support H.R. 9. 
If you want to defend the status quo, if you believe that the American 
people are wrong in their disregard for the heavy hand of the Federal 
Government, you will vote for the motion to recommit.
  I urge my colleagues to vote down the motion to recommit, and vote 
for H.R. 9.
                              {time}  1345

  The SPEAKER pro tempore (Mr. Hansen). Without objection, the previous 
question is ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             recorded vote

  Mr. SPRATT. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 180, 
noes 239, not voting 15, as follows:
                     [[Page H2638]] [Roll No. 198]

                               AYES--180

     Abercrombie
     Ackerman
     Andrews
     Baldacci
     Barrett (WI)
     Becerra
     Beilenson
     Bentsen
     Berman
     Bevill
     Bishop
     Boehlert
     Bonior
     Borski
     Boucher
     Browder
     Brown (FL)
     Brown (OH)
     Cardin
     Chapman
     Clay
     Clayton
     Clement
     Clyburn
     Coleman
     Collins (MI)
     Conyers
     Costello
     Coyne
     Cramer
     Deal
     DeFazio
     DeLauro
     Dellums
     Deutsch
     Dicks
     Dingell
     Dixon
     Doggett
     Dooley
     Doyle
     Durbin
     Edwards
     Engel
     Eshoo
     Evans
     Farr
     Fattah
     Fazio
     Fields (LA)
     Filner
     Flake
     Foglietta
     Ford
     Frank (MA)
     Frost
     Furse
     Gejdenson
     Gephardt
     Geren
     Gibbons
     Gordon
     Gutierrez
     Hall (OH)
     Hamilton
     Harman
     Hastings (FL)
     Hefner
     Hilliard
     Hinchey
     Holden
     Hoyer
     Jackson-Lee
     Jacobs
     Jefferson
     Johnson (SD)
     Johnson, E.B.
     Kanjorski
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kleczka
     Klink
     LaFalce
     Lantos
     Levin
     Lewis (GA)
     Lincoln
     Lipinski
     Lofgren
     Lowey
     Luther
     Maloney
     Manton
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy
     McDermott
     McHale
     McKinney
     McNulty
     Meehan
     Meek
     Menendez
     Mfume
     Mineta
     Minge
     Mink
     Mollohan
     Moran
     Morella
     Murtha
     Nadler
     Neal
     Oberstar
     Obey
     Olver
     Ortiz
     Orton
     Owens
     Pallone
     Pastor
     Payne (NJ)
     Payne (VA)
     Peterson (FL)
     Peterson (MN)
     Pomeroy
     Poshard
     Rahall
     Reed
     Richardson
     Rivers
     Roemer
     Rose
     Roybal-Allard
     Rush
     Sabo
     Sanders
     Sawyer
     Schroeder
     Schumer
     Scott
     Serrano
     Skaggs
     Skelton
     Slaughter
     Spratt
     Stark
     Stenholm
     Stokes
     Studds
     Stupak
     Tanner
     Tejeda
     Thompson
     Thornton
     Thurman
     Torres
     Torricelli
     Towns
     Traficant
     Tucker
     Velazquez
     Vento
     Visclosky
     Volkmer
     Ward
     Waters
     Watt (NC)
     Waxman
     Williams
     Wise
     Woolsey
     Wyden
     Wynn
     Yates

                               NOES--239

     Allard
     Archer
     Armey
     Bachus
     Baesler
     Baker (CA)
     Baker (LA)
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Bereuter
     Bilbray
     Bilirakis
     Bliley
     Blute
     Boehner
     Bonilla
     Bono
     Brewster
     Brownback
     Bryant (TN)
     Bunn
     Bunning
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Castle
     Chabot
     Chambliss
     Chenoweth
     Christensen
     Chrysler
     Clinger
     Coble
     Coburn
     Collins (GA)
     Combest
     Condit
     Cooley
     Cox
     Crane
     Crapo
     Cremeans
     Cubin
     Cunningham
     Danner
     Davis
     de la Garza
     DeLay
     Diaz-Balart
     Dickey
     Doolittle
     Dreier
     Duncan
     Dunn
     Ehlers
     Ehrlich
     Emerson
     English
     Ensign
     Everett
     Ewing
     Fawell
     Fields (TX)
     Flanagan
     Foley
     Forbes
     Fowler
     Fox
     Franks (CT)
     Franks (NJ)
     Frelinghuysen
     Frisa
     Funderburk
     Gallegly
     Ganske
     Gekas
     Gilchrest
     Gillmor
     Gilman
     Goodlatte
     Goodling
     Goss
     Graham
     Greenwood
     Gunderson
     Gutknecht
     Hall (TX)
     Hancock
     Hansen
     Hastert
     Hastings (WA)
     Hayworth
     Hefley
     Heineman
     Herger
     Hilleary
     Hobson
     Hoekstra
     Hoke
     Horn
     Hostettler
     Houghton
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Johnson (CT)
     Johnson, Sam
     Jones
     Kasich
     Kelly
     Kim
     King
     Kingston
     Klug
     Knollenberg
     Kolbe
     LaHood
     Largent
     Latham
     LaTourette
     Lazio
     Leach
     Lewis (CA)
     Lewis (KY)
     Lightfoot
     Linder
     Livingston
     LoBiondo
     Longley
     Lucas
     Manzullo
     Martini
     McCollum
     McCrery
     McDade
     McHugh
     McInnis
     McIntosh
     McKeon
     Metcalf
     Meyers
     Mica
     Miller (FL)
     Molinari
     Moorhead
     Myers
     Myrick
     Nethercutt
     Neumann
     Ney
     Norwood
     Nussle
     Oxley
     Packard
     Parker
     Paxon
     Petri
     Pickett
     Pombo
     Porter
     Portman
     Pryce
     Quillen
     Quinn
     Radanovich
     Ramstad
     Regula
     Reynolds
     Riggs
     Roberts
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Roth
     Roukema
     Royce
     Salmon
     Sanford
     Saxton
     Scarborough
     Schaefer
     Schiff
     Seastrand
     Sensenbrenner
     Shadegg
     Shaw
     Shays
     Shuster
     Sisisky
     Skeen
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Solomon
     Souder
     Spence
     Stearns
     Stockman
     Stump
     Talent
     Tate
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Thomas
     Thornberry
     Tiahrt
     Torkildsen
     Upton
     Vucanovich
     Waldholtz
     Walker
     Walsh
     Wamp
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wicker
     Wilson
     Wolf
     Young (AK)
     Young (FL)
     Zeliff
     Zimmer

                             NOT VOTING--15

     Brown (CA)
     Bryant (TX)
     Burr
     Collins (IL)
     Dornan
     Gonzalez
     Green
     Hayes
     Johnston
     Laughlin
     Miller (CA)
     Moakley
     Montgomery
     Pelosi
     Rangel

                              {time}  1401

  The Clerk announced the following pairs:
  On this vote:

       Mr. Rangel for, with Mr. Dornan against.
       Mrs. Collins of Illinois for, with Mr. Burr against.

  Mr. SKELTON changed his vote from ``no'' to ``aye.''
  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. POMBO. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The vote was taken by electronic device, and there were--yeas 277, 
nays 141, not voting 17, as follows:

                             [Roll No. 199]

                               YEAS--277

     Allard
     Archer
     Armey
     Bachus
     Baesler
     Baker (CA)
     Baker (LA)
     Ballenger
     Barcia
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Bentsen
     Bereuter
     Bevill
     Bilbray
     Bilirakis
     Bishop
     Bliley
     Blute
     Boehner
     Bonilla
     Bono
     Brewster
     Browder
     Brownback
     Bryant (TN)
     Bunn
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Castle
     Chabot
     Chambliss
     Chapman
     Chenoweth
     Christensen
     Chrysler
     Clinger
     Coble
     Coburn
     Collins (GA)
     Combest
     Condit
     Cooley
     Cox
     Cramer
     Crane
     Crapo
     Cremeans
     Cubin
     Cunningham
     Danner
     Davis
     de la Garza
     Deal
     DeLay
     Diaz-Balart
     Dickey
     Dooley
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Edwards
     Ehlers
     Ehrlich
     Emerson
     English
     Ensign
     Everett
     Ewing
     Fawell
     Fazio
     Fields (TX)
     Flanagan
     Foley
     Forbes
     Fowler
     Fox
     Franks (CT)
     Franks (NJ)
     Frelinghuysen
     Frisa
     Frost
     Funderburk
     Gallegly
     Ganske
     Gekas
     Geren
     Gillmor
     Gilman
     Gingrich
     Goodlatte
     Goodling
     Gordon
     Goss
     Graham
     Gunderson
     Gutknecht
     Hall (TX)
     Hamilton
     Hancock
     Hansen
     Harman
     Hastert
     Hastings (WA)
     Hayworth
     Hefley
     Hefner
     Heineman
     Herger
     Hilleary
     Hilliard
     Hobson
     Hoekstra
     Hoke
     Holden
     Horn
     Hostettler
     Houghton
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Jacobs
     Johnson (SD)
     Johnson, Sam
     Jones
     Kasich
     Kelly
     Kim
     King
     Kingston
     Klug
     Knollenberg
     Kolbe
     LaHood
     Largent
     Latham
     LaTourette
     Lazio
     Leach
     Lewis (CA)
     Lewis (KY)
     Lightfoot
     Lincoln
     Linder
     Livingston
     LoBiondo
     Longley
     Lucas
     Manzullo
     Martini
     McCollum
     McCrery
     McDade
     McHugh
     McInnis
     McIntosh
     McKeon
     McNulty
     Metcalf
     Meyers
     Mica
     Miller (FL)
     Minge
     Molinari
     Mollohan
     Moorhead
     Moran
     Myrick
     Nethercutt
     Neumann
     Ney
     Norwood
     Nussle
     Ortiz
     Orton
     Oxley
     Packard
     Parker
     Paxon
     Payne (VA)
     Peterson (FL)
     Peterson (MN)
     Petri
     Pickett
     Pombo
     Pomeroy
     Portman
     Poshard
     Pryce
     Quillen
     Quinn
     Radanovich
     Ramstad
     Regula
     Riggs
     Roberts
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Rose
     Roth
     Royce
     Salmon
     Sanford
     Saxton
     Scarborough
     Schaefer
     Schiff
     Seastrand
     Sensenbrenner
     Shadegg
     Shaw
     Shuster
     Sisisky
     Skeen
     Skelton
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Solomon
     Souder
     Spence
     Spratt
     Stearns
     Stenholm
     Stockman
     Stump
     Stupak
     Talent
     Tanner
     Tate
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Tejeda
     Thomas
     Thornberry
     Thornton
     Thurman
     Tiahrt
     Torkildsen
     Traficant
     Upton
     Volkmer
     Vucanovich
     Waldholtz
     Walker
     Walsh
     Wamp
     Watts (OK)
     Weldon (FL)
     Weldon (PA)
     Weller
     White
     Whitfield
     Wicker
     Wilson
     Wolf
     Young (AK)
     Young (FL)
     Zeliff

                               NAYS--141

     Abercrombie
     Ackerman
     Andrews
     Baldacci
     Barrett (WI)
     Becerra
     Beilenson
     Berman
     Boehlert
     Bonior
     Borski
     Boucher
     Brown (FL)
     Brown (OH)
     Cardin
     Clay
     Clayton
     Clement
     Clyburn
     Coleman
     Conyers
     Costello
     Coyne
     DeFazio
     DeLauro
     Dellums
     Deutsch
     Dicks
     Dingell
     Dixon
     Doggett
     Durbin
     Engel
     Eshoo
     Evans
     Farr
     Fattah
     Fields (LA)
     Filner
     Flake
     Foglietta
     Ford
     Frank (MA)
     Furse
     Gejdenson
     [[Page H2639]] Gephardt
     Gibbons
     Gilchrest
     Greenwood
     Gutierrez
     Hall (OH)
     Hastings (FL)
     Hinchey
     Hoyer
     Jackson-Lee
     Jefferson
     Johnson, E.B.
     Kanjorski
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kleczka
     Klink
     LaFalce
     Lantos
     Levin
     Lewis (GA)
     Lipinski
     Lofgren
     Lowey
     Luther
     Maloney
     Manton
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy
     McDermott
     McHale
     McKinney
     Meehan
     Meek
     Menendez
     Mfume
     Mineta
     Mink
     Morella
     Murtha
     Nadler
     Neal
     Oberstar
     Obey
     Olver
     Owens
     Pallone
     Pastor
     Payne (NJ)
     Porter
     Rahall
     Reed
     Reynolds
     Richardson
     Rivers
     Roukema
     Roybal-Allard
     Rush
     Sabo
     Sanders
     Sawyer
     Schroeder
     Schumer
     Scott
     Serrano
     Shays
     Skaggs
     Slaughter
     Stark
     Stokes
     Studds
     Thompson
     Torres
     Torricelli
     Towns
     Tucker
     Velazquez
     Vento
     Visclosky
     Ward
     Waters
     Watt (NC)
     Waxman
     Williams
     Wise
     Woolsey
     Wyden
     Wynn
     Yates
     Zimmer

                             NOT VOTING--17

     Brown (CA)
     Bryant (TX)
     Collins (IL)
     Collins (MI)
     Dornan
     Gonzalez
     Green
     Hayes
     Johnson (CT)
     Johnston
     Laughlin
     Miller (CA)
     Moakley
     Montgomery
     Myers
     Pelosi
     Rangel

                              {time}  1421

  The Clerk announced the following pair:
  On this vote:

       Mr. Dornan for, with Mr. Moakley against.

  Mr. VOLKMER changed his vote from ``nay'' to ``yea.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  

                          ____________________