[Congressional Record Volume 141, Number 41 (Monday, March 6, 1995)]
[House]
[Page H2720]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments were submitted as 
follows:

                               H.R. 1058

                         Offered By: Mr. Bryant

       Amendment No. 2: Page 28, after line 2, insert the 
     following new section (and redesignate the succeeding 
     sections and conform the table of contents accordingly):

     SEC. 6. INAPPLICABILITY TO DERIVATIVES.

       This Act and the amendments made by this Act shall not 
     apply to any action based on an allegation of fraud in 
     connection with the purchase or sale of a derivative 
     instrument. For purposes of this section, the term 
     ``derivative instrument'' means any financial contract or 
     other instrument that derives its value from the value or 
     performance of any security, currency exchange rate, or 
     interest rate (or group or index thereof), but does not 
     include--
       (1) any security that is traded on a national securities 
     exchange or on an automated interdealer quotation system 
     sponsored by a securities association registered under 
     section 15A of this title;
       (2) any forward contract which has a maturity at the time 
     of issuance not exceeding 270 days;
       (3) any contract of sale of a commodity for future 
     delivery, or any option on such a contract, traded or 
     executed on a designated contract market and subject to 
     regulation under the Commodity Exchange Act; or
       (4) any deposit held by a financial institution.

                               H.R. 1058

                         Offered By: Mr. Bryant

       Amendment No. 3: Page 18, beginning on line 6, strike 
     subsections (b) and (c) and insert the following (and 
     redesignate the succeeding subsections accordingly):
       ``(b) Pleading Requirement.--In any action arising under 
     this title in which the plaintiff may recover money damages 
     only if it proves that the defendant acted with scienter, the 
     plaintiff must allege in its complaint facts suggesting that 
     the defendant acted with that state of mind.
                               H.R. 1058

                          Offered By: Mr. Cox

       Amendment No. 4: Page 28, after line 2, insert the 
     following new section (and redesignate the succeeding 
     sections and conform the table of contents accordingly):

     SEC. 6. AMENDMENT TO RACKETEER INFLUENCED AND CORRUPT 
                   ORGANIZATIONS ACT.

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

                               H.R. 1058

                        Offered By: Mr. Dingell

       Amendment No. 5: Page 18, beginning on line 2, strike ``For 
     example, a defendant who genuinely forgot to disclose, or to 
     whom disclosure did not come to mind, is not reckless.''.

                               H.R. 1058

                         Offered By: Ms. Eshoo

       Amendment No. 6: Page 17, beginning on line 18, strike 
     paragraph (4) and insert the following:
       ``(4) Recklessness.--For purposes of paragraph (1), a 
     defendant makes a fraudulent statement recklessly if, in 
     making such statement, the defendant engaged in conduct (i) 
     that was highly unreasonable, involving not merely simple or 
     even inexcusable negligence, but an extreme departure from 
     standards of ordinary care, and (ii) that presented a danger 
     of misleading investors that was either known to the 
     defendant or so obvious that the defendant must have been 
     aware of it.
                               H.R. 1058

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 7: Page 24, line 13, strike ``No defendant'' 
     and all that follows through line 16, and after line 21, 
     insert the following new paragraph (and redesignate the 
     succeeding paragraph accordingly):
       ``(4) Uncollectible shares.--If, upon motion made not later 
     than 6 months after a final judgment is entered, the court 
     determines that all or part of a defendant's share of the 
     damages is uncollectible, the remaining defendants shall be 
     jointly and severally liable for the uncollectible share. A 
     share of damages is uncollectible if the court finds that--
       ``(A) the defendant is, or is in imminent danger of 
     becoming, bankrupt or insolvent;
       ``(B) the defendant is, or is likely to be, subject to 
     either State or Federal criminal proceedings that raise a 
     reasonable doubt about the defendant's ability to proceed as 
     a going concern; or
       ``(C) the defendant is, or the principals thereof, pose a 
     risk of fleeing the country to avoid prosecution, or are 
     attempting to transfer the defendant's assets outside the 
     United States to avoid satisfying a judgment reached under 
     this title.
                               H.R. 1058

                         Offered by: Mr. Manton

       Amendment No. 8. Page 7, beginning on line 19, strike 
     subsection (c) through page 11, line 8, and insert the 
     following:
       ``(c) Awards of Fees and Expenses.--
       ``(1) Authority to award fees and expenses.--If the court 
     in any private action arising under this title enters a final 
     judgment against a party litigant on the basis of a default, 
     a motion to dismiss, motion for summary judgment, or a trial 
     on the merits, the court shall, upon motion by the prevailing 
     party, determine whether--
       ``(A) The complaint or motion is being presented for any 
     improper purpose, such as to harass or to cause unnecessary 
     delay or needless increase in the cost of litigation;
       ``(B) the claims, defenses, and other legal contentions in 
     the complaint or motion, taken as a whole, are unwarranted by 
     existing law or by a nonfrivolous argument for the extension, 
     modification, or reversal of existing law or the 
     establishment of new law;
       ``(C) the allegations and other factual contentions in the 
     complaint or motion, taken as a whole, lack any evidentiary 
     support or would be likely to lack any evidentiary support 
     after a reasonable opportunity for further investigation or 
     discovery; or
       ``(D) the denials of factual contentions are unwarranted on 
     the evidence or are not reasonably based on a lack of 
     information or belief.
       ``(2) Award to prevailing party.--If the court determines 
     that the losing party has violated any subparagraph of 
     paragraph (1), the court shall award the prevailing party 
     reasonable fees and other expenses incurred by that party. 
     The determination of whether the losing party violated any 
     such subparagraph shall be made on the basis of the record in 
     the civil action for which fees and other expenses are 
     sought.
       ``(3) Application for fees.--A party seeking an award of 
     fees and other expenses shall, within 30 days of a final, 
     nonappealable judgment in the action, submit to the court an 
     application for fees and other expenses that verifies that 
     the party is entitled to such an award under paragraph (1) 
     and the amount sought, including an itemized statement
      from any attorney or expert witness representing or 
     appearing on behalf of the party stating the actual time 
     expended and the rate at which fees and other expenses are 
     computed.
       ``(4) Sanctions against attorney.--The court--
       ``(A) shall award the fees and expenses against the 
     attorney for the losing party unless the court determines 
     that the losing party was principally responsible for the 
     actions described in subparagraph (A), (B), (C), or (D) of 
     paragraph (1); and
       [[Page H2718]] ``(B) may, in its discretion, reduce the 
     amount to be awarded pursuant to this section, or deny an 
     award, to the extent that the prevailing party during the 
     course of the proceedings engaged in conduct that unduly and 
     unreasonably protracted the final resolution of the matter in 
     controversy.
       ``(5) Rule of construction.--Nothing in this subsection 
     shall be construed to limit or impair the discretion of the 
     court to award costs pursuant to other provisions of law.
       ``(6) Definitions.--For purposes of this subsection, the 
     term `fees and other expenses' includes the reasonable 
     expenses of expert witnesses, the reasonable cost of any 
     study, analysis, report, test, or project which is found by 
     the court to be necessary for the preparation of the party's 
     case, and reasonable attorney fees and expenses. The amount 
     of fees awarded under this section shall be based upon 
     prevailing market rates for the kind and quality of services 
     furnished.
                               H.R. 1058

                         Offered By: Mr. Markey

       Amendment No. 9: Page 28, after line 2, insert the 
     following new section (and redesignate the succeeding 
     sections and conform the table of contents accordingly):

     SEC. 6. AUTHORITY OF SEC TO PROSECUTE AIDING AND ABETTING.

       Section 20 of the Securities Exchange Act of 1934 (15 
     U.S.C. 78t) is amended--
       (1) by striking the heading of such section and inserting 
     the following:
       ``Liability of Controlling Persons and Persons Who Aid or 
     Abet Violations''; and
       (2) by adding at the end the following new subsection:
       ``(e) Prosecution of Persons Who Aid or Abet Violations.--
     For purposes of actions by the Commission pursuant to 
     subsections (d)(1) and (d)(3) of section 21, any person who 
     knowingly or recklessly provides substantial assistance to 
     another person in the violation of a provision of this title, 
     or of any rule or regulation thereunder, shall be deemed to 
     violate such provision and shall be liable to the same as the 
     person to whom such assistance is provided.''.
                               H.R. 1058

                         Offered By: Mr. Mineta

       Amendment No. 10: Page 26, beginning on line 1, strike 
     section 37 through page 28, line 2, and insert the following:

     ``SEC. 37. APPLICATION OF SAFE HARBOR FOR FORWARD-LOOKING 
                   STATEMENTS.

       ``(A) Safe Harbor In General.--In any private action 
     arising under this title based on a fraudulent statement (as 
     defined in section 10A), a person shall not be liable with 
     respect to any forward-looking statement if and to the extent 
     that the statement--
       ``(1) contains a projection, estimate, or description of 
     future events; and
       ``(2) refers clearly (or is understood by the recipient to 
     refer) to--
       ``(A) such projections, estimates, or descriptions as 
     forward-looking statements; and
       ``(B) the risk that such projections, estimates, or 
     descriptions may not be realized.

     The safe harbor for forward-looking statements established 
     under this subsection shall be in addition to any safe harbor 
     the Commission may establish by rule or regulation.
       ``(b) Definition of Forward-Looking Statement.--For the 
     purpose of this section, the term `forward-looking statement' 
     shall include (but not be limited to) projections, estimates, 
     and descriptions of future events, whether made orally or in 
     writing, voluntarily or otherwise.
       ``(c) No Duty To Make Continuing Projections.--In any 
     private action arising under this title, no person shall be 
     deemed to have any obligation to update a forward-looking 
     statement made by such person unless such person has 
     expressly and substantially contemporaneously undertaken to 
     update such statement.
       ``(d) Automatic Procedure for Staying Discovery; Expedited 
     Procedure for Consideration of Motion on Applicability of 
     Safe Harbor.--
       ``(1) Stay pending decision on motion.--Upon motion by a 
     defendant to dismiss on the ground that the statement or 
     omission upon which the complaint is based is a forward-
     looking statement within the meaning of this section and that 
     the safe harbor provisions of this section preclude a claim 
     for relief, the court shall stay discovery until such motion 
     is decided.
       ``(2) Protective orders.--If the court denies a motion to 
     dismiss to which paragraph (1) is
      applicable, or if no such motion is made and a party makes a 
     motion for a protective order, at any time beginning after 
     the filing of the complaint and ending 10 days after the 
     filing of such party's answer to the complaint, asserting 
     that the safe harbor provisions of this section apply to 
     the action, a protective order shall issue forthwith to 
     stay all discovery as to any party to whom the safe harbor 
     provisions of this section may apply, except that which is 
     directed to the specific issue of the applicability of the 
     safe harbor. A hearing on the applicability of the safe 
     harbor shall be conducted within 45 days of the issuance 
     of the protective order. At the conclusion of the hearing, 
     the court shall either dismiss the portion of the action 
     based upon the use of the forward-looking information or 
     determine that the safe harbor is unavailable in the 
     circumstances.
       ``(e) Regulatory Authority.--The Commission shall exercise 
     its authority to describe conduct with respect to the making 
     of forward-looking statements that will be deemed not to 
     provide a basis for liability in private actions under this 
     title. Such rules and regulations shall--
       ``(1) include clear and objective guidance that the 
     Commission finds sufficient for the protection of investors;
       ``(2) prescribe such guidance with sufficient particularity 
     that compliance shall be readily ascertainable by issuers 
     prior to issuance of securities; and
       ``(3) provide that forward-looking statements that are in 
     compliance with such guidance and that concern the future 
     economic performance of an issuer of securities registered 
     under section 12 of this title will be deemed not to be in 
     violation of this title.

     Nothing in this section shall be deemed to limit, either 
     expressly or by implication, the authority of the Commission 
     to exercise similar authority or to adopt similar rules and 
     regulations with respect to forward-looking statements under 
     other statutes under which the Commission exercises 
     rulemaking authority.''.

                               H.R. 1058

                 Offered By: Mr. Watt of North Carolina

       Amendment No. 11. Page 8, line 20, strike the word 
     ``shall'' and substitute ``may''.
                               H.R. 1058

                 Offered By: Mr. Watt of North Carolina

       Amendment No. 12: Page 16, line 23, after the semicolon, 
     add ``and''.
       Page 16, strike lines 24 and 25 in the entirety and 
     redesignate the subsequent subsection accordingly.

                               H.R. 1058

                         Offered By: Mr. Wyden

       Amendment No. 13: Page 28, after line 2, insert the 
     following new section (and redesignate the succeeding 
     sections and conform the table of contents accordingly):

     SEC. 6. FINANCIAL FRAUD DETECTION AND DISCLOSURE.

       (a) Amendments to the Securities Exchange Act of 1934.--The 
     Securities Exchange Act of 1934 is amended by inserting after 
     section 13 (15 U.S.C. 78m) the following new section:

     ``SEC. 13A. FRAUD DETECTION AND DISCLOSURE.

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

     the independent public accountant shall, as soon as 
     practicable, directly report its conclusions to the board of 
     directors.
       ``(3) Notice to commission; response to failure to 
     notify.--An issuer whose board 
     [[Page H2719]] of directors has received a report pursuant to 
     paragraph (2) shall inform the Commission by notice within 
     one business day of receipt of such report and shall furnish 
     the independent public accountant making such report with a 
     copy of the notice furnished the Commission. If the 
     independent public accountant making such report shall fail 
     to receive a copy of such notice within the required one-
     business-day period, the independent public accountant 
     shall--
       ``(A) resign from the engagement; or
       ``(B) furnish to the Commission a copy of its report (or 
     the documentation of any oral report given) within the next 
     business day following such failure to receive notice.
       ``(4) Report after resignation.--An independent public 
     accountant electing resignation shall, within the one 
     business day following a failure by an issuer to notify the 
     Commission under paragraph (3), furnish to the Commission a 
     copy of the accountant's report (or the documentation of any 
     oral report given).
       ``(c) Auditor Liability Limitation.--No independent public 
     accountant shall be liable in a private action for any 
     finding, conclusion, or statement expressed in a report made 
     pursuant to paragraph (3) or (4) of subsection (b), including 
     any rules promulgated pursuant thereto.
       ``(d) Civil Penalties in Cease-and-Desist Proceedings.--If 
     the Commission finds, after notice and opportunity for 
     hearing in a proceeding instituted pursuant to section 21C of 
     this title, that an independent public accountant has 
     willfully violated paragraph (3) or (4) of subsection (b) of 
     this section, then the Commission may, in addition to 
     entering an order under section 21C, impose a civil penalty 
     against the independent public accountant and any other 
     person that the Commission finds was a cause of such 
     violation. The determination whether to impose a civil 
     penalty, and the amount of any such penalty, shall be 
     governed by the standards set forth in section 21B of this 
     title.
       ``(e) Preservation of Existing Authority.--Except for 
     subsection (d), nothing in this section limits or otherwise 
     affects the authority of the Commission under this title.
       ``(f) Definitions.--As used in this section, the term 
     `illegal act' means any action or omission to act that 
     violates any law, or any rule or regulation having the force 
     of law.''.
       ``(b) Effective Dates.--As to any registrant that is 
     required to file selected quarterly financial data pursuant 
     to item 302(a) of Regulation S-K (17 CFR 229.302(a)) of the 
     Securities and Exchange Commission, the amendments made by 
     subsection (a) of this section shall apply to any annual 
     report for any period beginning on or after January 1, 1996. 
     As to any other registrant, such amendment shall apply for 
     any period beginning on or after January 1, 1997.
                                H.R. 988

                   Offered By: Mr. Burton of Indiana

       Amendment No. 8: In section 2, page 4, line 1, insert at 
     the beginning of the line: ``25 percent of''.
       And on line 5, strike the period, insert a coma and add the 
     following new language ``, or the Court may increase the 
     percentage above the 25% if in the opinion of the Court the 
     offeror was not reasonable in accepting the last offer.''

                                H.R. 988

                         Offered By: Ms. Harman

       Amendment No. 9: Strike section 2 of the bill, and insert 
     the following:

     SEC. 2. AWARD OF COSTS AND ATTORNEY'S FEES IN FEDERAL CIVIL 
                   DIVERSITY LITIGATION.

       Section 1332 of title 28, United States Code, is amended by 
     adding at the end the following:
       ``(e) Awards of Fees and Expenses.--
       ``(1) Authority to award fees and expenses.--In any action 
     over which the court has jurisdiction under this section, if 
     the court enters a final judgment against a party litigant on 
     the basis of a motion to dismiss, motion for summary 
     judgment, or a trial on the merits, the court shall, upon 
     motion by the prevailing party, determine whether (A) the 
     position of the losing party was not substantially justified, 
     (B) imposing fees and expenses on the losing party or the 
     losing party's attorney would be just, and (C) the cost of 
     such fees and expenses to the prevailing party is 
     substantially burdensome or unjust. If the court makes the 
     determinations described in clauses (A), (B), and (C), the 
     court shall award the prevailing
      party reasonable fees and other expenses incurred by that 
     party. The determination of whether the position of the 
     losing party was substantially justified shall be made on 
     the basis of the record in the action for which fees and 
     other expenses are sought, but the burden of persuasion 
     shall be on the prevailing party.
       ``(2) Security for payment of costs in class actions.--In 
     any private action arising under this section that is 
     certified as a class action pursuant to the Federal Rules of 
     Civil Procedure, the court shall require an undertaking from 
     the attorneys for the plaintiff class, the plaintiff class, 
     or both, in such proportions and at such times as the court 
     determines are just and equitable, for the payment of the 
     fees and expenses that may be awarded under paragraph (1).
       ``(3) Application for fees.--A party seeking an award of 
     fees and other expenses shall, within 30 days of a final, 
     nonappealable judgment in the action, submit to the court an 
     application for fees and other expenses that verifies that 
     the party is entitled to such an award under paragraph (1) 
     and the amount sought, including an itemized statement from 
     any attorney or expert witness representing or appearing on 
     behalf of the party stating the actual time expended and the 
     rate at which fees and other expenses are computed.
       ``(4) Allocation and size of award.--The court, in its 
     discretion, may--
       ``(A) determine whether the amount to be awarded pursuant 
     to this subsection shall be awarded against the losing party, 
     its attorney, or both; and
       ``(B) reduce the amount to be awarded pursuant to this 
     subsection, or deny an award, to the extent that the 
     prevailing party during the course of the proceedings engaged 
     in conduct that unduly and unreasonably protracted the final 
     resolution of the action.
       ``(5) Awards in discovery proceedings.--In adjudicating any 
     motion for an order compelling discovery or any motion for a 
     protective order made in any action over which the court has 
     jurisdiction under this section, the court shall award the 
     prevailing party reasonable fees and other expenses incurred 
     by the party in bringing or defending against the motion, 
     including reasonable attorneys' fees, unless the court finds 
     that special circumstances make an award unjust.
       ``(6) Rule of construction.--Nothing in this subsection 
     shall be construed to limit or impair the discretion of the 
     court to award costs pursuant to other provisions of law.
       ``(7) Protection against abuse of process.--In any action 
     to which this subsection applies, a court shall not permit a 
     plaintiff to withdraw from or voluntarily dismiss such action 
     if the court determines that such withdrawal or dismissal is 
     taken for purposes of evasion of the requirements of this 
     subsection.
       ``(8) Definitions.--For purposes of this subsection--
       ``(A) The term `fees and other expenses' includes the 
     reasonable expenses of expert witnesses, the reasonable cost 
     of any study, analysis, report, test, or project which is 
     found by the court to be necessary for the preparation of the 
     party's case, and reasonable attorneys' fees and expenses. 
     The amount of fees awarded under this subsection shall be 
     based upon prevailing market rates for the kind and quality 
     of services furnished.
       ``(B) The term `substantially justified' shall have the 
     same meaning as in section 2412(d)(1) of title 28, United 
     States Code.''.

                                H.R. 988

                         Offered By: Mr. McHale

       Amendment No. 10: After section 4, insert the following:

     SEC. 5. FRIVOLOUS ACTIONS.

       (a) General Rule.--
       (1) Signing of complaint.--The signing or verification of a 
     complaint in all civil actions in Federal court constitutes a 
     certificate that to the signatory's or verifier's best 
     knowledge, information, and belief, formed after reasonable 
     inquiry, the action is not frivolous as determined under 
     paragraph (2).
       (2) Definitions.--
       (A) For purposes of this section, an action is frivolous if 
     the complaint is--
       (i) groundless and brought in bad faith;
       (ii) groundless and brought for the purpose of harassment; 
     or
       (iii) groundless and brought for any improper purpose.
       (B) For purposes of subparagraph (A), the term 
     ``groundless'' means--
       (i) no basis in fact; or
       (ii) not warranted by existing law or a good faith argument 
     for the extension, modification, or reversal of existing law.
       (b) Determination That An Action is Frivolous.--
       (1) Motion for determination.--Not later than 90 days after 
     the date the complaint in any action in a Federal court is 
     filed, the defendant to the action may make a motion that the 
     court determine if the action is frivolous.
       (2) Court action.--The court in any action in Federal court 
     shall on the motion of a defendant or on its own motion 
     determine if the action is frivolous.
       (c) Considerations.--In making its determination of whether 
     an action is frivolous, the court shall take into account--
       (1) the multiplicity of parties;
       (2) the complexity of the claims and defenses;
       (3) the length of time available to the party to 
     investigate and conduct discovery; and
       (4) affidavits, depositions, and any other relevant matter.
       (d) Sanction.--If the court determines that the action is 
     frivolous, the court shall impose an appropriate sanction on 
     the signatory or verifier of the complaint and the attorney 
     of record. The sanction shall include the following--
       (1) the striking of the complaint;
       (2) the dismissal of the party; and
       (3) an order to pay to the defendant the amounts of the 
     reasonable expenses incurred because of the filing of the 
     action, including costs, witness fees, fees of experts, 
     discovery expenses, and reasonable attorney's fees calculated 
     on the basis of an hourly rate which may not exceed that 
     which the court considers acceptable in the community in 
     which the attorney practices law, taking into account the 
     attorney's qualifications and experience and the complexity 
     of the case, except 
     [[Page H2720]] that the amount of expenses which may be 
     ordered under this paragraph may not exceed--
       (A) the actual expenses incurred by the plaintiff because 
     of the filing of the action; and
       (B) to the extent that such expenses were not incurred 
     because of a contingency agreement, the reasonable expenses 
     that would have been incurred in the absence of the 
     contingency agreement.
       (e) Construction.--For purposes of this section the amount 
     requested for damages in a complaint does not constitute a 
     frivolous action.
       Page 7, line 1, strike ``SEC. 5.'' and insert ``SEC. 6.''.
       Page 7, line 7, strike ``The'' and insert ``Section 5 and 
     the''.

                              H.J. Res. 2

                        Offered By: Mrs. Fowler

       Amendment No. 1: Strike all after the resolving clause and 
     insert the following:

     That the following article is proposed as an amendment to the 
     Constitution of the United States, which shall be valid to 
     all intents and purposes as part of the Constitution when 
     ratified by the legislatures of three-fourths of the several 
     States within seven years after the date of its submission 
     for ratification:

                              ``Article --

       ``No person may serve more than four consecutive terms as 
     Representative or two consecutive terms as Senator, not 
     counting any term that began before the adoption of this 
     article of amendment.''.
Vol. 141           WASHINGTON, MONDAY, MARCH 6, 1995             No. 41
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                                 Senate