[Congressional Record Volume 141, Number 113 (Thursday, July 13, 1995)]
[Senate]
[Pages S9917-S9932]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page S 9917]]


                          AMENDMENTS SUBMITTED

                                 ______


           THE COMPREHENSIVE REGULA- TORY REFORM ACT OF 1995

                                 ______


                 DOMENICI (AND BOND) AMENDMENT NO. 1509

  (Ordered to lie on the table.)
  Mr. DOMENICI (for himself and Mr. Bond) submitted an amendment 
intended to be proposed by them to amendment No. 1487 proposed by Mr. 
Dole to the bill (S. 343) to reform the regulatory process, and for 
other purposes; as follows:

                           Amendment No. 1509

       At the appropriate place in the Dole substitute No. 1487, 
     add the following new title:
          TITLE II--AGENCY RESPONSIVENESS TO SMALL BUSINESSES
               Subtitle A--Small Business Advocacy Review

     SEC. 201. DEFINITIONS.

       For purposes of this subtitle, the following definitions 
     shall apply:
       (1) Agency.--The term ``agency'' means--
       (A) with respect to the Environmental Small Business 
     Advocacy Review Panel, the Environmental Protection Agency; 
     and
       (B) with respect to the Occupational Safety and Health 
     Small Business Advocacy Review Panel, the Occupational Safety 
     and Health Administration of the Department of Labor.
       (2) Agency head.--The term ``agency head'' means--
       (A) with respect to the Environmental Small Business 
     Advocacy Review Panel, the Administrator of the Environmental 
     Protection Agency; and
       (B) with respect to the Occupational Safety and Health 
     Small Business Advocacy Review Panel, the Assistant Secretary 
     for Occupational Safety and Health of the Department of 
     Labor.
       (3) Chairperson.--The term ``chairperson'' means--
       (A) with respect to the Environmental Small Business 
     Advocacy Review Panel, the chairperson of such review panel 
     designated under section 202(a); and
       (B) with respect to the Occupational Safety and Health 
     Small Business Advocacy Review Panel, the chairperson of such 
     review panel designated under section 202(b).
       (4) Chief counsel for advocacy.--The term ``Chief Counsel 
     for Advocacy'' means the Chief Counsel for Advocacy of the 
     Small Business Administration.
       (5) Final rule.--The term ``final rule'' means any final 
     rule or interim final rule issued by an agency for which a 
     review panel has been established under section 202(c)(2)(A).
       (6) Office.--The term ``Office'' means the Office of 
     Advocacy of the Small Business Administration.
       (7) Review panel.--The term ``review panel'' means--
       (A) with respect to a significant rule of the Environmental 
     Protection Agency, an Environmental Small Business Advocacy 
     Review Panel established under section 202(c)(2)(A); and
       (B) with respect to a significant rule of the Occupational 
     Safety and Health Administration of the Department of Labor, 
     an Occupational Safety and Health Small Business Advocacy 
     Review Panel established under section 202(c)(2)(A).
       (8) Rule.--The term ``rule''--
       (A) means an agency statement of general applicability and 
     future effect, which the agency intends to have the force and 
     effect of law, that is designed to implement, interpret, or 
     prescribe law or policy or to describe the procedure or 
     practice requirements of the agency; and
       (B) does not include any rule that is limited to agency 
     organization, management, or personnel matters.
       (9) Significant rule.--The term ``significant rule'' means 
     any rule proposed by an agency that the chairperson, in 
     consultation with the Administrator of the Office of 
     Information and Regulatory Affairs within the Office of 
     Management and Budget, reasonably estimates would have--
       (A) an annual aggregate impact on the private sector in an 
     amount equal to not less than $50,000,000; and
       (B) an impact on small businesses.
       (10) Small business.--The term ``small business'' has the 
     same meaning as the term ``small business concern'' in 
     section 3 of the Small Business Act.

     SEC. 202. SMALL BUSINESS ADVOCACY CHAIRPERSONS.

       (a) Chairperson of Environmental Review Panels.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator of the Environmental 
     Protection Agency shall designate an employee of the 
     Environmental Protection Agency, who is a member of the 
     Senior Executive Service (as that term is defined in section 
     2101a of title 5, United States Code) and whose immediate 
     supervisor is appointed by the President, to serve as the 
     chairperson of each Environmental Small Business Advocacy 
     Review Panel and to carry out this subtitle with respect to 
     the Environmental Protection Agency.
       (2) Disability or absence.--If the employee designated to 
     serve as chairperson under paragraph (1) is unable to serve 
     as chairperson because of disability or absence, the 
     Administrator of the Environmental Protection Agency shall 
     designate another employee who meets the qualifications of 
     paragraph (1) to serve as chairperson.
       (b) Chairperson of OSHA Review Panels.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Assistant Secretary for 
     Occupational Safety and Health of the Department of Labor 
     shall designate an employee of the Occupational Safety and 
     Health Administration of the Department of Labor, who is a 
     member of the Senior Executive Service (as that term is 
     defined in section 2101a of title 5, United States Code) and 
     whose immediate supervisor is appointed by the President, to 
     serve as the chairperson of each Occupational Safety and 
     Health Small Business Advocacy Review Panel and to carry out 
     the purposes of this subtitle with respect to the 
     Occupational Safety and Health Administration.
       (2) Disability or absence.--If the employee designated to 
     serve as chairperson under paragraph (1) is unable to serve 
     as chairperson because of disability of absence, the 
     Assistant Secretary for Occupational Safety and Health of the 
     Department of Labor shall designate another employee who 
     meets the qualifications of paragraph (1) to serve as 
     chairperson.
       (c) Duties of the Chairperson.--
       (1) Initial determination and notification.--
       (A) Timing.--The chairperson shall take the actions 
     described in subparagraph (B) not later than 45 days before 
     the earlier of--
       (i) the date of publication in the Federal Register by an 
     agency of a general notice of proposed rulemaking under 
     section 553(b) of title 5, United States Code, or any other 
     provision of law; or
       (ii) the date of publication in the Federal Register by an 
     agency of a proposed rule.
       (B) Actions.--With respect to a proposed rule that is the 
     subject of a publication described in clause (i) or (ii) of 
     subparagraph (A), the chairperson shall--
       (i) determine whether the subject proposed rule constitutes 
     a significant rule, as defined in section 201(9); and
       (ii) if the proposed rule is determined to constitute a 
     significant rule, notify the Administrator of the Office of 
     Information and Regulatory Affairs within the Office of 
     Management and Budget and the Chief Counsel for Advocacy to 
     appoint review panel members for evaluation of the subject 
     significant rule.
       (2) Establishment of review panels.--
       (A) In general.--Not later than 15 days after receiving 
     notice under paragraph (1)(B)(ii), or such longer period as 
     the chairperson may allow, review panel members shall be 
     appointed by the Administrator of the Office of Information 
     and Regulatory Affairs within the Office of Management and 
     Budget, the Chief Counsel for Advocacy, and the chairperson 
     in accordance with section 203(b).
       (B) Exceptions.--A review panel shall be established in 
     accordance with subparagraph (A) unless the chairperson, in 
     consultation with the Chief Counsel for Advocacy, determines 
     (and notifies the agency in writing of such determination) 
     that--
       (i) a good faith effort to secure enough non-Federal 
     employee review panel members necessary to constitute a 
     quorum with respect to the subject significant rule was 
     unsuccessful; and
       (ii) compliance with this subtitle is not required with 
     respect to the subject significant rule due to a lack of 
     availability of private sector interests.
       (d) Duties Regarding Final Rule.--
       (1) In general.--Not later than 45 days before the issuance 
     of a significant final rule, the chairperson shall--
       (A) notify panel members of the intent of the agency to 
     issue a final rule;
       (B) provide panel members with a dated draft of the final 
     rule to be issued;
       (C) solicit comments from panel members in connection with 
     the duties of the review panel described in section 203(a); 
     and
       (D) if the chairperson determines that such action is 
     necessary, call one or more meetings of the review panel and, 
     if a quorum is present, direct the review panel to review, 
     discuss, or clarify any issue related to the subject final 
     rule or the preparation of the report under paragraph (2).
       (2) Report.--Except as provided in section 204(b), not 
     later than 5 days before the issuance of a final rule, the 
     chairperson shall submit a report in accordance with section 
     204(a).

     SEC. 203. SMALL BUSINESS ADVOCACY REVIEW PANELS.

       (a) General Duties.--Before any publication described in 
     clause (i) or (ii) of section 202(c)(1)(A) of a proposed 
     significant rule, and again before the issuance of such rule 
     as a final rule, the review panel shall, in accordance with 
     this subtitle--
       (1) provide technical guidance to the agency, including 
     guidance relating to--
       (A) the applicability of the proposed rule to small 
     businesses;
       (B) enforcement of and compliance with the rule by small 
     businesses;
       (C) the consistency or redundancy of the proposed rule with 
     respect to other Federal, State, and local regulations and 
     recordkeeping requirements imposed on small businesses; and
       (D) any other concerns posed by the proposed rule that may 
     impact significantly upon small businesses; and

[[Page S 9918]]

       (2) evaluate each rule in the context of the requirements 
     imposed under--
       (A) subsections (b) and (c) of section 603, paragraphs (1) 
     through (3) of section 604(a), section 604(b), and paragraphs 
     (1) through (5) of section 609 of title 5, United States 
     Code;
       (B) sections 202 and 205 of the Unfunded Mandates Act of 
     1995 (Public Law 104-4);
       (C) subsection (a) and paragraphs (1) through (12) of 
     subsection (b) of section 1 of Executive Order No. 12866, 
     September 30, 1993; and
       (D) any other requirement under any other Act, including 
     those relative to regulatory reform requirements that affect 
     compliance, existing Federal or State regulations that may 
     duplicate, overlap, or conflict with the significant rule, 
     and the readability and complexity of rules and regulations.
       (b) Membership.--Each review panel shall be composed of--
       (1) the chairperson;
       (2) not less than 1 nor more than 3 members appointed by 
     the chairperson from among employees of the agency who would 
     be responsible for carrying out the subject significant rule;
       (3) 1 member appointed by the Administrator of the Office 
     of Information and Regulatory Affairs within the Office of 
     Management and Budget from among the employees of that office 
     who have specific knowledge of or responsibilities relating 
     to the regulatory responsibilities of the agency that would 
     be responsible for carrying out the subject significant rule;
       (4) 1 member appointed by the Chief Counsel for Advocacy 
     from among the employees of the Office; and
       (5) not less than 1 nor more than 3 members selected by the 
     Chief Counsel for Advocacy from among individuals who are 
     representatives of--
       (A) small businesses that would be impacted by the 
     significant rule;
       (B) small business sectors or industries that would be 
     especially impacted by the significant rule; or
       (C) organizations whose memberships are comprised of a 
     cross-section of small businesses.
       (c) Period of Appointment; Vacancies.--
       (1) Period of appointment.--Each review panel member, other 
     than the chairperson, shall be appointed for a term beginning 
     on the date on which the appointment is made and ending on 
     the date on which the report or written record is submitted 
     under section 204.
       (2) Vacancies.--Any vacancy on a review panel shall not 
     affect the powers of the review panel, but shall be filled in 
     the same manner as the original appointment.
       (d)  Quorum.--A quorum for the conduct of business by a 
     review panel shall consist of 1 member appointed from each of 
     paragraphs (2) through (5) of subsection (b).
       (e) Meetings.--
       (1) In general.--Subject to paragraph (2), the meetings of 
     the review panel shall be at the call of the chairperson.
       (2) Initial meeting.--Not later than 15 days after all 
     review panel members necessary to constitute a quorum have 
     been appointed under subsection (b), the chairperson shall 
     conduct the initial meeting of the review panel.
       (f) Powers of Review Panel.--
       (1) Information from federal agencies.--A review panel may 
     secure, directly from any Federal department or agency, such 
     information as the review panel considers necessary to carry 
     out this subtitle. Upon request of the chairperson, the head 
     of such department or agency shall furnish such information 
     to the review panel.
       (2) Postal services.--A review panel may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (g) Noncompensation of Members.--
       (1) In general.--Members of the review panel who are not 
     officers or employees of the Federal Government shall serve 
     without compensation.
       (2) Federal employees.--Members of the review panel who are 
     officers or employees of the Federal Government shall serve 
     without compensation in addition to that received for their 
     services as officers or employees of the Federal Government.
       (h) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to a review panel without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (i) Consultation With Other Entities.--In carrying out this 
     subtitle, the chairperson shall consult and coordinate, to 
     the maximum extent practicable, the activities of the review 
     panel with each office of the agency that is responsible for 
     the provision of data or technical advice concerning a 
     significant rule.

     SEC. 204. REPORT.

       (a) In General.--Except as provided in subsection (b), the 
     chairperson shall, in accordance with section 202(d)(2), 
     submit to the appropriate employees of the agency who would 
     be responsible for carrying out the subject significant rule 
     and to the appropriate committees of the Senate and the House 
     of Representatives a report, which shall include--
       (1) the findings and recommendations of the review panel 
     with respect to the significant rule, including both the 
     majority and minority views of the review panel members, 
     regardless of the consensus of opinions that may derive from 
     the meetings of the review panel; and
       (2) recommendations regarding whether a survey with respect 
     to the subject significant rule should be conducted under 
     section 207, and--
       (A) if so--
       (i) a timeframe during which the survey should be 
     conducted, taking into account the time required to implement 
     the rule and to gather appropriate data; and
       (ii) any recommendations of the review panel regarding the 
     contents of the survey; and
       (B) if not, the reasons why the survey is not recommended.
       (b) Failure To Submit Report.--If the chairperson fails to 
     submit a report under subsection (a), not later than the date 
     on which the final rule is issued, the chairperson shall--
       (1) prepare a written record of such failure detailing the 
     reasons therefore; and
       (2) submit a copy of such written record to the head of the 
     agency and to the appropriate committees of the Congress.

     SEC. 205. APPLICABILITY OF OTHER LAW; JUDICIAL REVIEW.

       (a) Inapplicability of Federal Advisory Committee Act.--The 
     provisions of the Federal Advisory Committee Act do not apply 
     to any review panel established in accordance with this 
     subtitle.
       (b) Prohibition on Judicial Review.--No action or inaction 
     of a review panel, including any recommendations or advice of 
     a review panel or any procedure or process of a review panel, 
     may be subject to judicial review by a court of the United 
     States under chapter 7 of title 5, United States Code, or any 
     other provision of law.

     SEC. 206. MORATORIUM ON CERTAIN PUBLICATIONS.

       Notwithstanding any other provision of this subtitle, no 
     agency shall make any publication described in clause (i) or 
     (ii) of section 202(c)(1)(A) until the initial chairperson 
     appointed under section 202 has had an adequate opportunity 
     to review the subject proposed rule in accordance with 
     section 202(c)(1)(A).

     SEC. 207. PEER REVIEW SURVEY.

       (a) In General.--If a review panel makes a recommendation 
     in any report submitted under section 204(a) that a survey 
     should be conducted with respect to a significant rule, the 
     agency shall contract with a private sector auditing firm or 
     other survey-related organization to conduct a survey of a 
     cross-section of the small businesses impacted by the rule.
       (b) Contents of Survey.--Each survey conducted under this 
     section shall address the impact of the significant rule on 
     small businesses, including--
       (1) the applicability of the rule to various small 
     businesses;
       (2) the degree to which the rule is easy to read and 
     comprehend;
       (3) the costs to implement the rule;
       (4) any recordkeeping requirements imposed by the rule; and
       (5) any other technical or general issues related to the 
     rule.
       (c) Availability of Survey Results.--The results of each 
     survey conducted under this section shall be made available--
       (1) to each interested Federal agency; and
       (2) upon request, to any other interested party, including 
     organizations, individuals, State and local governments, and 
     the Congress.
                    Subtitle B--Regulatory Ombudsmen

     SEC. 211. SMALL BUSINESS AND AGRICULTURE OMBUDSMEN.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by redesignating section 30 as section 31; and
       (2) by inserting after section 29 the following new 
     section:

     ``SEC. 30. OVERSIGHT OF REGULATORY ENFORCEMENT.

       ``(a) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Board.--The term `Board' means a Small Business 
     Regulatory Fairness Board established under subsection (c).
       ``(2) Covered agency.--The term `covered agency' means any 
     agency that, as of the date of enactment of the Comprehensive 
     Regulatory Reform Act of 1995, has promulgated any rule for 
     which a regulatory flexibility analysis was required under 
     section 605 of title 5, United States Code, and any other 
     agency that promulgates any such rule, as of the date of such 
     promulgation.
       ``(3) Ombudsman.--The term `ombudsman' means a Regional 
     Small Business and Agriculture Ombudsman designated under 
     subsection (b).
       ``(4) Region.--The term `region' means any area for which 
     the Administrator has established a regional office of the 
     Administration pursuant to section 4(a).
       ``(5) Rule.--The term `rule' has the same meaning as in 
     section 601(2) of title 5, United States Code.
       ``(b) Ombudsman.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Comprehensive Regulatory Reform Act of 
     1995, the Administrator shall designate in each region a 
     senior employee of the Administration to serve as the 
     Regional Small Business and Agriculture Ombudsman in 
     accordance with this subsection.
       ``(2) Duties.--Each ombudsman designated under paragraph 
     (1) shall--
       ``(A) on a confidential basis, solicit and receive comments 
     from small business concerns regarding the enforcement 
     activities of covered agencies;

[[Page S 9919]]

       ``(B) based on comments received under subparagraph (A), 
     annually assign and publish a small business responsiveness 
     rating to each covered agency;
       ``(C) publish periodic reports compiling the comments 
     received under subparagraph (A);
       ``(D) coordinate the activities of the Small Business 
     Regulatory Fairness Board established under subsection (c); 
     and
       ``(E) establish a toll-free telephone number to receive 
     comments from small business concerns under subparagraph 
     (A).''.

     SEC. 212. SMALL BUSINESS REGULATORY FAIRNESS BOARDS.

       Section 30 of the Small Business Act (as added by section 
     211 of this Act) is amended by adding at the end the 
     following new subsection:
       ``(c) Small Business Regulatory Fairness Boards.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Comprehensive Regulatory Reform Act of 
     1995, the Administrator shall establish in each region a 
     Small Business Regulatory Fairness Board in accordance with 
     this subsection.
       ``(2) Duties.--Each Board established under paragraph (1) 
     shall--
       ``(A) advise the ombudsman on matters of concern to small 
     business concerns relating to the enforcement activities of 
     covered agencies;
       ``(B) conduct investigations into enforcement activities by 
     covered agencies with respect to small business concerns;
       ``(C) issue advisory findings and recommendations regarding 
     the enforcement activities of covered agencies with respect 
     to small business concerns;
       ``(D) review and approve, prior to publication--
       ``(i) each small business responsiveness rating assigned 
     under subsection (b)(2)(B); and
       ``(ii) each periodic report prepared under subsection 
     (b)(2)(C); and
       ``(E) prepare written opinions regarding the reasonableness 
     and understandability of rules issued by covered agencies.
       ``(3) Membership.--Each Board shall consist of--
       ``(A) 1 member appointed by the President;
       ``(B) 1 member appointed by the Speaker of the House of 
     Representatives;
       ``(C) 1 member appointed by the Minority Leader of the 
     House of Representatives;
       ``(D) 1 member appointed by the Majority Leader of the 
     Senate; and
       ``(E) 1 member appointed by the Minority Leader of the 
     Senate.
       ``(4) Period of appointment; vacancies.--
       ``(A) Period of appointment.--
       ``(i) Presidential appointees.--Each member of the Board 
     appointed under subparagraph (A) of paragraph (2) shall be 
     appointed for a term of 3 years, except that the initial 
     member appointed under such subparagraph shall be appointed 
     for a term of 1 year.
       ``(ii) House of representatives appointees.--Each member of 
     the Board appointed under subparagraph (B) or (C) of 
     paragraph (2) shall be appointed for a term of 3 years, 
     except that the initial members appointed under such 
     subparagraphs shall each be appointed for a term of 2 years.
       ``(iii) Senate appointees.--Each member of the Board 
     appointed under subparagraph (D) or (E) of paragraph (2) 
     shall be appointed for a term of 3 years.
       ``(B) Vacancies.--Any vacancy on the Board--
       ``(i) shall not affect the powers of the Board; and
       ``(ii) shall be filled in the same manner and under the 
     same terms and conditions as the original appointment.
       ``(5) Chairperson.--The Board shall select a Chairperson 
     from among the members of the Board.
       ``(6) Meetings.--
       ``(A) In general.--The Board shall meet at the call of the 
     Chairperson.
       ``(B) Initial meeting.--Not later than 90 days after the 
     date on which all members of the Board have been appointed, 
     the Board shall hold its first meeting.
       ``(7) Quorum.--A majority of the members of the Board shall 
     constitute a quorum for the conduct of business, but a lesser 
     number may hold hearings.
       ``(8) Powers of the board.--
       ``(A) Hearings.--The Board or, at its direction, any 
     subcommittee or member of the Board, may, for the purpose of 
     carrying out the provisions of this section, hold such 
     hearings, sit and act at such times and places, take such 
     testimony, and receive such evidence as the Board determines 
     to be appropriate.
       ``(B) Witness allowances and fees.--Section 1821 of title 
     28, United States Code, shall apply to witnesses requested to 
     appear at any hearing of the Board. The per diem and mileage 
     allowances for any witness shall be paid from funds available 
     to pay the expenses of the Board.
       ``(C) Information from federal agencies.--Upon the request 
     of the Chairperson, the Board may secure directly from the 
     head of any Federal department or agency such information as 
     the Board considers necessary to carry out this section.
       ``(D)  Postal services.--The Board may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       ``(E) Donations.--The Board may accept, use, and dispose of 
     donations of services or property.
       ``(9) Board personnel matters.--
       ``(A) Compensation.--Members of the Board shall serve 
     without compensation.
       ``(B) Travel expenses.--Members of the Board shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Board.''.

     SEC. 213. JUDICIAL REVIEW.

       (a) Prohibition.--No action or inaction of a Regional Small 
     Business and Agriculture Ombudsman or a Small Business 
     Regulatory Fairness Board, including any recommendations or 
     advice of a Regional Small Business and Agriculture Ombudsman 
     or a Small Business Regulatory Fairness Board or any 
     procedure or process of a Regional Small Business and 
     Agriculture Ombudsman or a Small Business Regulatory Fairness 
     Board, may be subject to judicial review by a court of the 
     United States under chapter 7 of title 5, United States Code, 
     or any other provision of law.
       (b) Definitions.--For purposes of this section--
       (1) the term ``Regional Small Business and Agriculture 
     Ombudsman'' means any ombudsman designated under section 
     30(b) of the Small Business Act, as added by section 211 of 
     this Act.
       (2) the term ``Small Business Regulatory Fairness Board'' 
     means any board established under section 30(c) of the Small 
     Business Act, as added by section 212 of this Act.
                                 ______


                 BAUCUS (AND OTHERS) AMENDMENT NO. 1510

  (Ordered to lie on the table.)
  Mr. BAUCUS (for himself, Mr. Johnston, Mr. Lautenberg, Mr. Bradley, 
Mrs. Murray, Mrs. Feinstein, Mr. Reid, Mrs. Boxer, Mr. Moynihan, and 
Mr. Glenn) submitted an amendment intended to be proposed by them to 
amendment No. 1487 proposed by Mr. Dole to the bill S. 343, supra; as 
follows:

       Beginning on page 42, strike line 3 and all that follows 
     through page 44, line 14, and insert the following:

     ``Sec. 628. Petition for alternative method of compliance

                                 ______


                   HATFIELD AMENDMENTS NOS. 1511-1512

  (Ordered to lie on the table.)
  Mr. HATFIELD submitted two amendments intended to be proposed by him 
to amendment No. 1487 proposed by Mr. Dole to the bill S. 343, supra; 
as follows:
                           Amendment No. 1511

       At the end of the substitute amendment add the following 
     new section:

     SEC. ____. LOCAL EMPOWERMENT AND FLEXIBILITY.

       (a) Findings.--The Congress finds that--
       (1) historically, Federal programs have addressed the 
     Nation's problems by providing categorical financial 
     assistance with detailed requirements relating to the use of 
     funds;
       (2) while the assistance described in paragraph (1) has 
     been directed at critical problems, some program requirements 
     may inadvertently impede the effective delivery of services;
       (3) the Nation's local governments and private, nonprofit 
     organizations are dealing with increasingly complex problems 
     which require the delivery of many kinds of services;
       (4) the Nation's communities are diverse, and different 
     needs are present in different communities;
       (5) it is more important than ever to provide programs 
     that--
       (A) promote more effective and efficient local delivery of 
     services to meet the full range of needs of individuals, 
     families, and society;
       (B) respond flexibly to the diverse needs of the Nation's 
     communities;
       (C) reduce the barriers between programs that impede local 
     governments' ability to effectively deliver services; and
       (D) empower local governments and private, nonprofit 
     organizations to be innovative in creating programs that meet 
     the unique needs of their communities while continuing to 
     address national policy goals; and
       (6) many communities have innovative planning and community 
     involvement strategies for providing services, but Federal, 
     State, tribal governments, and local regulations often hamper 
     full implementation of local plans.
       (b) Purposes.--The purposes of this section are to--
       (1) enable more efficient use of Federal, State, and local 
     resources;
       (2) place less emphasis in Federal service programs on 
     measuring resources and procedures and more emphasis on 
     achieving Federal, State, and local policy goals;
       (3) enable local governments and private, nonprofit 
     organizations to adapt programs of Federal financial 
     assistance to the particular needs of their communities, by--
       (A) drawing upon appropriations available from more than 
     one Federal program; and 

[[Page S 9920]]

       (B) integrating programs and program funds across existing 
     Federal financial assistance categories; and
       (4) enable local governments and private, nonprofit 
     organizations to work together and build stronger cooperative 
     partnerships to address critical service problems.
       (c) Definitions.--For purposes of this section--
       (1) the term ``approved local flexibility plan'' means a 
     local flexibility plan that combines funds from Federal, 
     State, local government or private sources to address the 
     service needs of a community (or any part of such a plan) 
     that is approved by the Flexibility Council under subsection 
     (d);
       (2) the term ``community advisory committee'' means such a 
     committee established by a local government under subsection 
     (h);
       (3) the term ``Flexibility Council'' means the council 
     composed of the--
       (A) Assistant to the President for Domestic Policy;
       (B) Assistant to the President for Economic Policy;
       (C) Secretary of the Treasury;
       (D) Attorney General;
       (E) Secretary of the Interior;
       (F) Secretary of Agriculture;
       (G) Secretary of Commerce;
       (H) Secretary of Labor;
       (I) Secretary of Health and Human Services;
       (J) Secretary of Housing and Urban Development;
       (K) Secretary of Transportation;
       (L) Secretary of Education;
       (M) Secretary of Energy;
       (N) Secretary of Veterans Affairs;
       (O) Secretary of Defense;
       (P) Director of Federal Emergency Management Agency;
       (Q) Administrator of the Environmental Protection Agency;
       (R) Director of National Drug Control Policy;
       (S) Administrator of the Small Business Administration;
       (T) Director of the Office of Management and Budget; and
       (U) Chair of the Council of Economic Advisers.
       (4) the term ``covered Federal financial assistance 
     program'' means an eligible Federal financial assistance 
     program that is included in a local flexibility plan of a 
     local government;
       (5) the term ``eligible Federal financial assistance 
     program''--
       (A) means a Federal program under which financial 
     assistance is available, directly or indirectly, to a local 
     government or a qualified organization to carry out the 
     specified program; and
       (B) does not include a Federal program under which 
     financial assistance is provided by the Federal Government 
     directly to a beneficiary of that financial assistance or to 
     a State as a direct payment to an individual;
       (6) the term ``eligible local government'' means a local 
     government that is eligible to receive financial assistance 
     under 1 or more covered Federal programs;
       (7) the term ``local flexibility plan'' means a 
     comprehensive plan for the integration and administration by 
     a local government of financial assistance provided by the 
     Federal Government under 2 or more eligible Federal financial 
     assistance programs;
       (8) the term ``local government'' means a subdivision of a 
     State that is a unit of general local government (as defined 
     under section 6501 of title 31, United States Code);
       (9) the term ``priority funding'' means giving higher 
     priority (including by the assignment of extra points, if 
     applicable) to applications for Federal financial assistance 
     submitted by a local government having an approved local 
     flexibility program, by--
       (A) a person located in the jurisdiction of such a 
     government; or
       (B) a qualified organization eligible for assistance under 
     a covered Federal financial assistance program included in 
     such a plan;
       (10) the term ``qualified organization'' means a private, 
     nonprofit organization described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 that is exempt from taxation 
     under section 501(a) of the Internal Revenue Code of 1986; 
     and
       (11) the term ``State'' means the 50 States, the District 
     of Columbia, Puerto Rico, American Samoa, Guam, the Virgin 
     Islands, and any tribal government.
       (d) Provision of Federal Financial Assistance in Accordance 
     With Approved Local Flexibility Plan.--
       (1) Payments to local governments.--Notwithstanding any 
     other provision of law, amounts available to a local 
     government or a qualified organization under a covered 
     Federal financial assistance program included in an approved 
     local flexibility plan shall be provided to and used by the 
     local government or organization in accordance with the 
     approved local flexibility plan.
       (2) Eligibility for benefits.--An individual or family that 
     is eligible for benefits or services under a covered Federal 
     financial assistance program included in an approved local 
     flexibility plan may receive those benefits only in 
     accordance with the approved local flexibility plan.
       (e) Application for Approval of Local Flexibility Plan.--
       (1) In general.--A local government may submit to the 
     Flexibility Council in accordance with this subsection an 
     application for approval of a local flexibility plan.
       (2) Contents of application.--An application submitted 
     under this subsection shall include--
       (A)(i) a proposed local flexibility plan that complies with 
     paragraph (3); or
       (ii) a strategic plan submitted in application for 
     designation as an enterprise community or an empowerment zone 
     under section 1391 of the Internal Revenue Code of 1986;
       (B) certification by the chief executive of the local 
     government, and such additional assurances as may be required 
     by the Flexibility Council, that--
       (i) the local government has the ability and authority to 
     implement the proposed plan, directly or through contractual 
     or other arrangements, throughout the geographic area in 
     which the proposed plan is intended to apply; and
       (ii) amounts are available from non-Federal sources to pay 
     the non-Federal share of all covered Federal financial 
     assistance programs included in the proposed plan; and
       (C) any comments on the proposed plan submitted under 
     paragraph (4) by the Governor of the State in which the local 
     government is located;
       (D) public comments on the plan including the transcript of 
     at least 1 public hearing and comments of the appropriate 
     community advisory committee established under subsection 
     (h); and
       (E) other relevant information the Flexibility Council may 
     require to approve the proposed plan.
       (3) Contents of plan.--A local flexibility plan submitted 
     by a local government under this subsection shall include--
       (A) the geographic area to which the plan applies and the 
     rationale for defining the area;
       (B) the particular groups of individuals, by service needs, 
     economic circumstances, or other defining factors, who shall 
     receive services and benefits under the plan;
       (C)(i) specific goals and measurable performance criteria, 
     a description of how the plan is expected to attain those 
     goals and criteria;
       (ii) a description of how performance shall be measured; 
     and
       (iii) a system for the comprehensive evaluation of the 
     impact of the plan on participants, the community, and 
     program costs;
       (D) the eligible Federal financial assistance programs to 
     be included in the plan as covered Federal financial 
     assistance programs and the specific benefits that shall be 
     provided under the plan under such programs, including--
       (i) criteria for determining eligibility for benefits under 
     the plan;
       (ii) the services available;
       (iii) the amounts and form (such as cash, in-kind 
     contributions, or financial instruments) of nonservice 
     benefits; and
       (iv) any other descriptive information the Flexibility 
     Council considers necessary to approve the plan;
       (E) except for the requirements under subsection (g)(2)(C), 
     any Federal statutory or regulatory requirement applicable 
     under a covered Federal financial assistance program included 
     in the plan, the waiver of which is necessary to implement 
     the plan;
       (F) fiscal control and related accountability procedures 
     applicable under the plan;
       (G) a description of the sources of all non-Federal funds 
     that are required to carry out covered Federal financial 
     assistance programs included in the plan;
       (H) written consent from each qualified organization for 
     which consent is required under paragraph (2)(B); and
       (I) other relevant information the Flexibility Council may 
     require to approve the plan.
       (4) Procedure for applying.--(A) To apply for approval of a 
     local flexibility plan, a local government shall submit an 
     application in accordance with this subsection to the 
     Governor of the State in which the local government is 
     located.
       (B) A Governor who receives an application from a local 
     government under subparagraph (A) may, by no later than 30 
     days after the date of that receipt--
       (i) prepare comments on the proposed local flexibility plan 
     included in the application;
       (ii) describe any State laws which are necessary to waive 
     for successful implementation of a local plan; and
       (iii) submit the application and comments to the 
     Flexibility Council.
       (C) If a Governor fails to act within 30 days after 
     receiving an application under subparagraph (B), the 
     applicable local government may submit the application to the 
     Flexibility Council.
       (f) Review and Approval of Local Flexibility Plans.--
       (1) Review of applications.--Upon receipt of an application 
     for approval of a local flexibility plan under this section, 
     the Flexibility Council shall--
       (A) approve or disapprove all or part of the plan within 45 
     days after receipt of the application;
       (B) notify the applicant in writing of that approval or 
     disapproval by not later than 15 days after the date of that 
     approval or disapproval; and
       (C) in the case of any disapproval of a plan, include a 
     written justification of the reasons for disapproval in the 
     notice of disapproval sent to the applicant.
       (2) Approval.--(A) The Flexibility Council may approve a 
     local flexibility plan for which an application is submitted 
     under this section, or any part of such a plan, if a majority 
     of members of the Council determines that--
       (i) the plan or part shall improve the effectiveness and 
     efficiency of providing benefits 

[[Page S 9921]]
     under covered Federal programs included in the plan by reducing 
     administrative inflexibility, duplication, and unnecessary 
     expenditures;
       (ii) the applicant local government has adequately 
     considered, and the plan or part of the plan appropriately 
     addresses, any effect that administration of each covered 
     Federal program under the plan or part of the plan shall have 
     on administration of the other covered Federal programs under 
     that plan or part of the plan;
       (iii) the applicant local government has or is developing 
     data bases, planning, and evaluation processes that are 
     adequate for implementing the plan or part of the plan;
       (iv) the plan shall more effectively achieve Federal 
     financial assistance goals at the local level and shall 
     better meet the needs of local citizens;
       (v) implementation of the plan or part of the plan shall 
     adequately achieve the purposes of this section and of each 
     covered Federal financial assistance program under the plan 
     or part of the plan;
       (vi) the plan and the application for approval of the plan 
     comply with the requirements of this section;
       (vii) the plan or part of the plan is adequate to ensure 
     that individuals and families that receive benefits under 
     covered Federal financial assistance programs included in the 
     plan or part shall continue to receive benefits that meet the 
     needs intended to be met under the program; and
       (viii) the local government has--
       (I) waived the corresponding local laws necessary for 
     implementation of the plan; and
       (II) sought any necessary waivers from the State.
       (B) The Flexibility Council may not approve any part of a 
     local flexibility plan if--
       (i) implementation of that part would result in any 
     increase in the total amount of obligations or outlays of 
     discretionary appropriations or direct spending under covered 
     Federal financial assistance programs included in that part, 
     over the amounts of such obligations and outlays that would 
     occur under those programs without implementation of the 
     part; or
       (ii) in the case of a plan or part that applies to 
     assistance to a qualified organization under an eligible 
     Federal financial assistance program, the qualified 
     organization does not consent in writing to the receipt of 
     that assistance in accordance with the plan.
       (C) The Flexibility Council shall disapprove a part of a 
     local flexibility plan if a majority of the Council 
     disapproves that part of the plan based on a failure of the 
     part to comply with subparagraph (A).
       (D) In approving any part of a local flexibility plan, the 
     Flexibility Council shall specify the period during which the 
     part is effective.
       (E) Disapproval by the Flexibility Council of any part of a 
     local flexibility plan submitted by a local government under 
     this title shall not affect the eligibility of a local 
     government, a qualified organization, or any individual for 
     benefits under any Federal program.
       (3) Memoranda of understanding.--(A) The Flexibility 
     Council may not approve a part of a local flexibility plan 
     unless each local government and each qualified organization 
     that would receive financial assistance under the plan enters 
     into a memorandum of understanding under this paragraph with 
     the Flexibility Council.
       (B) A memorandum of understanding under this subsection 
     shall specify all understandings that have been reached by 
     the Flexibility Council, the local government, and each 
     qualified organization that is subject to a local flexibility 
     plan, regarding the approval and implementation of all parts 
     of a local flexibility plan that are the subject of the 
     memorandum, including understandings with respect to--
       (i) all requirements under covered Federal financial 
     assistance programs that are to be waived by the Flexibility 
     Council under subsection (g)(2);
       (ii)(I) the total amount of Federal funds that shall be 
     provided as benefits under or used to administer covered 
     Federal financial assistance programs included in those 
     parts; or
       (II) a mechanism for determining that amount, including 
     specification of the total amount of Federal funds that shall 
     be provided or used under each covered Federal financial 
     assistance program included in those parts;
       (iii) the sources of all non-Federal funds that shall be 
     provided as benefits under or used to administer those parts;
       (iv) measurable performance criteria that shall be used 
     during the term of those parts to determine the extent to 
     which the goals and performance levels of the parts are 
     achieved; and
       (v) the data to be collected to make that determination.
       (4) Limitation on confidentiality requirements.--The 
     Flexibility Council may not, as a condition of approval of 
     any part of a local flexibility plan or with respect to the 
     implementation of any part of an approved local flexibility 
     plan, establish any confidentiality requirement that would--
       (A) impede the exchange of information needed for the 
     design or provision of benefits under the parts; or
       (B) conflict with law.
       (g) Implementation of Approved Local Flexibility Plans; 
     Waiver of Requirements.--
       (1) Payments and administration in accordance with plan.--
     Notwithstanding any other law, any benefit that is provided 
     under a covered Federal financial assistance program included 
     in an approved local flexibility plan shall be paid and 
     administered in the manner specified in the approved local 
     flexibility plan.
       (2) Waiver of requirements.--(A) Notwithstanding any other 
     law and subject to subparagraphs (B) and (C), the Flexibility 
     Council may waive any requirement applicable under Federal 
     law to the administration of, or provision of benefits under, 
     any covered Federal assistance program included in an 
     approved local flexibility plan, if that waiver is--
       (i) reasonably necessary for the implementation of the 
     plan; and
       (ii) approved by a majority of members of the Flexibility 
     Council.
       (B) The Flexibility Council may not waive a requirement 
     under this paragraph unless the Council finds that waiver of 
     the requirement shall not result in a qualitative reduction 
     in services or benefits for any individual or family that is 
     eligible for benefits under a covered Federal financial 
     assistance program.
       (C) The Flexibility Council may not waive any requirement 
     under this paragraph--
       (i) that enforces any constitutional or statutory right of 
     an individual, including any right under--
       (I) title VI of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d et seq.);
       (II) section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 701 et seq.);
       (III) title IX of the Education Amendments of 1972 (86 
     Stat. 373 et seq.);
       (IV) the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
     seq.); or
       (V) the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.);
       (ii) for payment of a non-Federal share of funding of an 
     activity under a covered Federal financial assistance 
     program; or
       (iii) for grants received on a maintenance of effort basis.
       (3) Special assistance.--To the extent permitted by law, 
     the head of each Federal agency shall seek to provide special 
     assistance to a local government or qualified organization to 
     support implementation of an approved local flexibility plan, 
     including expedited processing, priority funding, and 
     technical assistance.
       (4) Evaluation and termination.--(A) A local government, in 
     accordance with regulations issued by the Flexibility 
     Council, shall--
       (i) submit such reports on and cooperate in such audits of 
     the implementation of its approved local flexibility plan; 
     and
       (ii) periodically evaluate the effect implementation of the 
     plan has had on--
       (I) individuals who receive benefits under the plan;
       (II) communities in which those individuals live; and
       (III) costs of administering covered Federal financial 
     assistance programs included in the plan.
       (B) No later than 90 days after the end of the 1-year 
     period beginning on the date of the approval by the 
     Flexibility Council of an approved local flexibility plan of 
     a local government, and annually thereafter, the local 
     government shall submit to the Flexibility Council a report 
     on the principal activities and achievements under the plan 
     during the period covered by the report, comparing those 
     achievements to the goals and performance criteria included 
     in the plan under subsection (e)(3)(C).
       (C)(i) The Flexibility Council may terminate the 
     effectiveness of an approved local flexibility plan, if the 
     Flexibility Council, after consultation with the head of each 
     Federal agency responsible for administering a covered 
     Federal financial assistance program included in such, 
     determines--
       (I) that the goals and performance criteria included in the 
     plan under subsection (e)(3)(C) have not been met; and
       (II) after considering any experiences gained in 
     implementation of the plan, that those goals and criteria are 
     sound.
       (ii) In terminating the effectiveness of an approved local 
     flexibility plan under this subparagraph, the Flexibility 
     Council shall allow a reasonable period of time for 
     appropriate Federal, State, and local agencies and qualified 
     organizations to resume administration of Federal programs 
     that are covered Federal financial assistance programs 
     included in the plan.
       (5) Final report; extension of plans.--(A) No later than 45 
     days after the end of the effective period of an approved 
     local flexibility plan of a local government, or at any time 
     that the local government determines that the plan has 
     demonstrated its worth, the local government shall submit to 
     the Flexibility Council a final report on its implementation 
     of the plan, including a full evaluation of the successes and 
     shortcomings of the plan and the effects of that 
     implementation on individuals who receive benefits under 
     those programs.
       (B) The Flexibility Council may extend the effective period 
     of an approved local flexibility plan for such period as may 
     be appropriate, based on the report of a local government 
     under subparagraph (A).
       (h) Community Advisory Committees.--
       (1) Establishment.--A local government that applies for 
     approval of a local flexibility plan under this section shall 
     establish a community advisory committee in accordance with 
     this section.

[[Page S 9922]]

       (2) Functions.--A community advisory committee shall advise 
     a local government in the development and implementation of 
     its local flexibility plan, including advice with respect 
     to--
       (A) conducting public hearings; and
       (B) reviewing and commenting on all community policies, 
     programs, and actions under the plan which affect low income 
     individuals and families, with the purpose of ensuring 
     maximum coordination and responsiveness of the plan in 
     providing benefits under the plan to those individuals and 
     families.
       (3) Membership.--The membership of a community advisory 
     committee shall--
       (A) be comprised of--
       (i) persons with leadership experience in the private and 
     voluntary sectors;
       (ii) local elected officials;
       (iii) representatives of participating qualified 
     organizations; and
       (iv) the general public; and
       (B) include individuals and representatives of community 
     organizations who shall help to enhance the leadership role 
     of the local government in developing a local flexibility 
     plan.
       (4) Opportunity for review and comment by committee.--
     Before submitting an application for approval of a final 
     proposed local flexibility plan, a local government shall 
     submit the final proposed plan for review and comment by a 
     community advisory committee established by the local 
     government.
       (5) Committee review of reports.--Before submitting annual 
     or final reports on an approved Federal assistance plan, a 
     local government or private nonprofit organization shall 
     submit the report for review and comment to the community 
     advisory committee.
       (i) Technical and Other Assistance.--
       (1) Technical assistance.--(A) The Flexibility Council may 
     provide, or direct that the head of a Federal agency provide, 
     technical assistance to a local government or qualified 
     organization in developing information necessary for the 
     design or implementation of a local flexibility plan.
       (B) Assistance may be provided under this paragraph if a 
     local government makes a request that includes, in accordance 
     with requirements established by the Flexibility Council--
       (i) a description of the local flexibility plan the local 
     government proposes to develop;
       (ii) a description of the groups of individuals to whom 
     benefits shall be provided under covered Federal assistance 
     programs included in the plan; and
       (iii) such assurances as the Flexibility Council may 
     require that--
       (I) in the development of the application to be submitted 
     under this title for approval of the plan, the local 
     government shall provide adequate opportunities to 
     participate to--

       (aa) individuals and families that shall receive benefits 
     under covered Federal financial assistance programs included 
     in the plan; and
       (bb) governmental agencies that administer those programs; 
     and

       (II) the plan shall be developed after considering fully--

       (aa) needs expressed by those individuals and families;
       (bb) community priorities; and
       (cc) available governmental resources in the geographic 
     area to which the plan shall apply.

       (2) Details to council.--At the request of the Flexibility 
     Council and with the approval of an agency head who is a 
     member of the Council, agency staff may be detailed to the 
     Flexibility Council on a nonreimbursable basis.
       (j) Flexibility Council.--
       (1) Functions.--The Flexibility Council shall--
       (A) receive, review, and approve or disapprove local 
     flexibility plans for which approval is sought under this 
     section;
       (B) upon request from an applicant for such approval, 
     direct the head of an agency that administers a covered 
     Federal financial assistance program under which substantial 
     Federal financial assistance would be provided under the plan 
     to provide technical assistance to the applicant;
       (C) monitor the progress of development and implementation 
     of local flexibility plans;
       (D) perform such other functions as are assigned to the 
     Flexibility Council by this section; and
       (E) issue regulations to implement this section within 180 
     days after the date of its enactment.
       (2) Reports.--No less than 18 months after the date of the 
     enactment of this Act, and annually thereafter, the 
     Flexibility Council shall submit a report on the 5 Federal 
     regulations that are most frequently waived by the 
     Flexibility Council for local governments with approved local 
     flexibility plans to the President and the Congress. The 
     President shall review the report and determine whether to 
     amend or terminate such Federal regulations.
       (k) Report.--No later than 54 months after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the Congress, a report that--
       (1) describes the extent to which local governments have 
     established and implemented approved local flexibility plans;
       (2) evaluates the effectiveness of covered Federal 
     assistance programs included in approved local flexibility 
     plans; and
       (3) includes recommendations with respect to local 
     flexibility.
                                                                    ____

                           Amendment No. 1512

       Add at the end of the substitute amendment the following 
     new section:

     SEC. ____. LOCAL EMPOWERMENT AND FLEXIBILITY.

       (a) Findings.--The Congress finds that--
       (1) historically, Federal social service programs have 
     addressed the Nation's social problems by providing 
     categorical assistance with detailed requirements relating to 
     the use of funds;
       (2) while the assistance described in paragraph (1) has 
     been directed at critical problems, some program requirements 
     may inadvertently impede the effective delivery of social 
     services;
       (3) the Nation's local governments and private, nonprofit 
     organizations are dealing with increasingly complex social 
     problems which require the delivery of many kinds of social 
     services;
       (4) the Nation's communities are diverse, and different 
     social needs are present in different communities;
       (5) it is more important than ever to provide programs 
     that--
       (A) promote local delivery of social services to meet the 
     full range of needs of individuals and families;
       (B) respond flexibly to the diverse needs of the Nation's 
     communities;
       (C) reduce the barriers between programs that impede local 
     governments' ability to effectively deliver social services; 
     and
       (D) empower local governments and private, nonprofit 
     organizations to be innovative in creating programs that meet 
     the unique needs of the people in their communities while 
     continuing to address national social service goals; and
       (6) many communities have innovative planning and community 
     involvement strategies for social services, but Federal, 
     State, and local regulations often hamper full implementation 
     of local plans.
       (b)  Purposes.--The purposes of this section are to--
       (1) enable more efficient use of Federal, State, and local 
     resources;
       (2) place less emphasis in Federal social service programs 
     on measuring resources and procedures and more emphasis on 
     achieving Federal, State, and local social services goals;
       (3) enable local governments and private, nonprofit 
     organizations to adapt programs of Federal assistance to the 
     particular needs of low income citizens and the operating 
     practices of recipients, by--
       (A) drawing upon appropriations available from more than 
     one Federal program; and
       (B) integrating programs and program funds across existing 
     Federal assistance categories; and
       (4) enable local governments and private, nonprofit 
     organizations to work together and build stronger cooperative 
     partnerships to address critical social service problems.
       (c) Definitions.--For purposes of this Act--
       (1) the term ``approved local flexibility plan'' means a 
     local flexibility plan that combines funds from Federal, 
     State, local government, tribal government or private sources 
     to address the social service needs of a community (or any 
     part of such a plan) that is approved by the Community 
     Enterprise Board under subsection (e);
       (2) the term ``community advisory committee'' means such a 
     committee established by a local government under subsection 
     (g);
       (3) the term ``Community Enterprise Board'' means the board 
     established by the President that is composed of the--
       (A) Vice President;
       (B) Assistant to the President for Domestic Policy;
       (C) Assistant to the President for Economic Policy;
       (D) Secretary of the Treasury;
       (E) Attorney General;
       (F) Secretary of the Interior;
       (G) Secretary of Agriculture;
       (H) Secretary of Commerce;
       (I) Secretary of Labor;
       (J) Secretary of Health and Human Services;
       (K) Secretary of Housing and Urban Development;
       (L) Secretary of Transportation;
       (M) Secretary of Education;
       (N) Administrator of the Environmental Protection Agency;
       (O) Director of National Drug Control Policy;
       (P) Administrator of the Small Business Administration;
       (Q) Director of the Office of Management and Budget; and
       (R) Chair of the Council of Economic Advisers.
       (4) the term ``covered Federal assistance program'' means 
     an eligible Federal assistance program that is included in a 
     local flexibility plan of a local government;
       (5) the term ``eligible Federal assistance program''--
       (A) means a Federal program under which assistance is 
     available, directly or indirectly, to a local government or a 
     qualified organization to carry out a program for--
       (i) economic development;
       (ii) employment training;
       (iii) health;
       (iv) housing;
       (v) nutrition;
       (vi) other social services; or
       (vii) rural development; and
       (B) does not include a Federal program under which 
     assistance is provided by the Federal Government directly to 
     a beneficiary of that assistance or to a State as a direct 
     payment to an individual;

[[Page S 9923]]

       (6) the term ``eligible local government'' means a local 
     government that is eligible to receive assistance under 1 or 
     more covered Federal programs;
       (7) the term ``local flexibility plan'' means a 
     comprehensive plan for the integration and administration by 
     a local government of assistance provided by the Federal 
     Government under 2 or more eligible Federal assistance 
     programs;
       (8) the term ``local government'' means a subdivision of a 
     State that is a unit of general local government (as defined 
     under section 6501 of title 31, United States Code);
       (9) the term ``low income'' means having an income that is 
     not greater than 200 percent of the Federal poverty income 
     level;
       (10) the term ``priority funding'' means giving higher 
     priority (including by the assignment of extra points, if 
     applicable) to applications for Federal assistance submitted 
     by a local government having an approved local flexibility 
     program, by--
       (A) a person located in the jurisdiction of such a 
     government; or
       (B) a qualified organization eligible for assistance under 
     a covered Federal assistance program included in such a plan;
       (11) the term ``qualified organization'' means a private, 
     nonprofit organization described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 that is exempt from taxation 
     under section 501(a) of the Internal Revenue Code of 1986; 
     and
       (12) the term ``State'' means the 50 States, the District 
     of Columbia, Puerto Rico, American Samoa, Guam, the Virgin 
     Islands, and any Indian tribal government.
       (d) Demonstration Program.--The Community Enterprise Board 
     shall--
       (1) establish and administer a local flexibility 
     demonstration program by approving local flexibility plans in 
     accordance with the provisions of this section;
       (2) no later than 180 days after the date of the enactment 
     of this Act, select no more than 30 local governments from no 
     more than 6 States to participate in such program, of which--
       (A) 3 States shall each have a population of 3,500,000 or 
     more as determined under the most recent decennial census; 
     and
       (B) 3 States shall each have a population of 3,500,000 or 
     less as determined under the most recent decennial census.
       (e) Provision of Federal Assistance in Accordance With 
     Approved Local Flexibility Plan.--
       (1) Payments to local governments.--Notwithstanding any 
     other provision of law, amounts available to a local 
     government or a qualified organization under a covered 
     Federal assistance program included in an approved local 
     flexibility plan shall be provided to and used by the local 
     government or organization in accordance with the approved 
     local flexibility plan.
       (2) Eligibility for benefits.--An individual or family that 
     is eligible for benefits or services under a covered Federal 
     assistance program included in an approved local flexibility 
     plan may receive those benefits only in accordance with the 
     approved local flexibility plan.
       (f) Application for Approval of Local Flexibility Plan.--
       (1) In general.--A local government may submit to the 
     Community Enterprise Board in accordance with this subsection 
     an application for approval of a local flexibility plan.
       (2) Contents of application.--An application submitted 
     under this subsection shall include--
       (A) a proposed local flexibility plan that complies with 
     paragraph (3);
       (B) certification by the chief executive of the local 
     government, and such additional assurances as may be required 
     by the Community Enterprise Board, that--
       (i) the local government has the ability and authority to 
     implement the proposed plan, directly or through contractual 
     or other arrangements, throughout the geographic area in 
     which the proposed plan is intended to apply;
       (ii) amounts are available from non-Federal sources to pay 
     the non-Federal share of all covered Federal assistance 
     programs included in the proposed plan; and
       (iii) low income individuals and families that reside in 
     that geographic area participated in the development of the 
     proposed plan;
       (C) any comments on the proposed plan submitted under 
     paragraph (4) by the Governor of the State in which the local 
     government is located;
       (D) public comments on the plan including the transcript of 
     at least 1 public hearing and comments of the appropriate 
     community advisory committee established under subsection 
     (i); and
       (E) other relevant information the Community Enterprise 
     Board may require to approve the proposed plan.
       (3) Contents of plan.--A local flexibility plan submitted 
     by a local government under this subsection shall include--
       (A) the geographic area to which the plan applies and the 
     rationale for defining the area;
       (B) the particular groups of individuals, by age, service 
     needs, economic circumstances, or other defining factors, who 
     shall receive services and benefits under the plan;
       (C)(i) specific goals and measurable performance criteria, 
     a description of how the plan is expected to attain those 
     goals and criteria;
       (ii) a description of how performance shall be measured; 
     and
       (D) a system for the comprehensive evaluation of the impact 
     of the plan on participants, the community, and program 
     costs;
       (E) the eligible Federal assistance programs to be included 
     in the plan as covered Federal assistance programs and the 
     specific benefits that shall be provided under the plan under 
     such programs, including--
       (i) criteria for determining eligibility for benefits under 
     the plan;
       (ii) the services available;
       (iii) the amounts and form (such as cash, in-kind 
     contributions, or financial instruments) of nonservice 
     benefits; and
       (iv) any other descriptive information the Community 
     Enterprise Board considers necessary to approve the plan;
       (F) except for the requirements under subsection (h)(2)(C), 
     any Federal statutory or regulatory requirement applicable 
     under a covered Federal assistance program included in the 
     plan, the waiver of which is necessary to implement the plan;
       (G) fiscal control and related accountability procedures 
     applicable under the plan;
       (H) a description of the sources of all non-Federal funds 
     that are required to carry out covered Federal assistance 
     programs included in the plan;
       (I) written consent from each qualified organization for 
     which consent is required under subsection (e)(2)(B); and
       (J) other relevant information the Community Enterprise 
     Board may require to approve the plan.
       (4) Procedure for applying.--(A) To apply for approval of a 
     local flexibility plan, a local government shall submit an 
     application in accordance with this subsection to the 
     Governor of the State in which the local government is 
     located.
       (B) A Governor who receives an application from a local 
     government under subparagraph (A) may, by no later than 30 
     days after the date of that receipt--
       (i) prepare comments on the proposed local flexibility plan 
     included in the application;
       (ii) describe any State laws which are necessary to waive 
     for successful implementation of a local plan; and
       (iii) submit the application and comments to the Community 
     Enterprise Board.
       (C) If a Governor fails to act within 30 days after 
     receiving an application under subparagraph (B), the 
     applicable local government may submit the application to the 
     Community Enterprise Board.
       (g)  Review and Approval of Local Flexibility Plans.--
       (1) Review of applications.--Upon receipt of an application 
     for approval of a local flexibility plan under this section, 
     the Community Enterprise Board shall--
       (A) approve or disapprove all or part of the plan within 45 
     days after receipt of the application;
       (B) notify the applicant in writing of that approval or 
     disapproval by not later than 15 days after the date of that 
     approval or disapproval; and
       (C) in the case of any disapproval of a plan, include a 
     written justification of the reasons for disapproval in the 
     notice of disapproval sent to the applicant.
       (2) Approval.--(A) The Community Enterprise Board may 
     approve a local flexibility plan for which an application is 
     submitted under this section, or any part of such a plan, if 
     a majority of members of the Board determines that--
       (i) the plan or part shall improve the effectiveness and 
     efficiency of providing benefits under covered Federal 
     programs included in the plan by reducing administrative 
     inflexibility, duplication, and unnecessary expenditures;
       (ii) the applicant local government has adequately 
     considered, and the plan or part of the plan appropriately 
     addresses, any effect that administration of each covered 
     Federal program under the plan or part of the plan shall have 
     on administration of the other covered Federal programs under 
     that plan or part of the plan;
       (iii) the applicant local government has or is developing 
     data bases, planning, and evaluation processes that are 
     adequate for implementing the plan or part of the plan;
       (iv) the plan shall more effectively achieve Federal 
     assistance goals at the local level and shall better meet the 
     needs of local citizens;
       (v) implementation of the plan or part of the plan shall 
     adequately achieve the purposes of this title and of each 
     covered Federal assistance program under the plan or part of 
     the plan;
       (vi) the plan and the application for approval of the plan 
     comply with the requirements of this section;
       (vii) the plan or part of the plan is adequate to ensure 
     that individuals and families that receive benefits under 
     covered Federal assistance programs included in the plan or 
     part shall continue to receive benefits that meet the needs 
     intended to be met under the program;
       (viii) the qualitative level of those benefits shall not be 
     reduced for any individual or family; and
       (ix) the local government has--
       (I) waived the corresponding local laws necessary for 
     implementation of the plan; and
       (II) sought any necessary waivers from the State.
       (B) The Community Enterprise Board may not approve any part 
     of a local flexibility plan if--
       (i) implementation of that part would result in any 
     increase in the total amount of 

[[Page S 9924]]
     obligations or outlays of discretionary appropriations or direct 
     spending under covered Federal assistance programs included 
     in that part, over the amounts of such obligations and 
     outlays that would occur under those programs without 
     implementation of the part; or
       (ii) in the case of a plan or part that applies to 
     assistance to a qualified organization under an eligible 
     Federal assistance program, the qualified organization does 
     not consent in writing to the receipt of that assistance in 
     accordance with the plan.
       (C) The Community Enterprise Board shall disapprove a part 
     of a local flexibility plan if a majority of the Board 
     disapproves that part of the plan based on a failure of the 
     part to comply with subparagraph (A).
       (D) In approving any part of a local flexibility plan, the 
     Community Enterprise Board shall specify the period during 
     which the part is effective. An approved local flexibility 
     plan shall not be effective after the date of the termination 
     of effectiveness of this section under subsection (l)(1).
       (E) Disapproval by the Community Enterprise Board of any 
     part of a local flexibility plan submitted by a local 
     government under this section shall not affect the 
     eligibility of a local government, a qualified organization, 
     or any individual for benefits under any Federal program.
       (3) Memoranda of Understanding.--(A) The Community 
     Enterprise Board may not approve a part of a local 
     flexibility plan unless each local government and each 
     qualified organization that would receive assistance under 
     the plan enters into a memorandum of understanding under this 
     subsection with the Community Enterprise Board.
       (B) A memorandum of understanding under this subsection 
     shall specify all understandings that have been reached by 
     the Community Enterprise Board, the local government, and 
     each qualified organization that is subject to a local 
     flexibility plan, regarding the approval and implementation 
     of all parts of a local flexibility plan that are the subject 
     of the memorandum, including understandings with respect to--
       (i) all requirements under covered Federal assistance 
     programs that are to be waived by the Community Enterprise 
     Board under subsection (h)(2);
       (ii)(I) the total amount of Federal funds that shall be 
     provided as benefits under or used to administer covered 
     Federal assistance programs included in those parts; or
       (II) a mechanism for determining that amount, including 
     specification of the total amount of Federal funds that shall 
     be provided or used under each covered Federal assistance 
     program included in those parts;
       (iii) the sources of all non-Federal funds that shall be 
     provided as benefits under or used to administer those parts;
       (iv) measurable performance criteria that shall be used 
     during the term of those parts to determine the extent to 
     which the goals and performance levels of the parts are 
     achieved; and
       (v) the data to be collected to make that determination.
       (4) Limitation on confidentiality requirements.--The 
     Community Enterprise Board may not, as a condition of 
     approval of any part of a local flexibility plan or with 
     respect to the implementation of any part of an approved 
     local flexibility plan, establish any confidentiality 
     requirement that would--
       (A) impede the exchange of information needed for the 
     design or provision of benefits under the parts; or
       (B) conflict with law.
       (h) Implementation of Approved Local Flexibility Plans; 
     Waiver of Requirements.
       (1) Payments and administration in accordance with plan.--
     Notwithstanding any other law, any benefit that is provided 
     under a covered Federal assistance program included in an 
     approved local flexibility plan shall be paid and 
     administered in the manner specified in the approved local 
     flexibility plan.
       (2) Waiver of requirements.--(A) Notwithstanding any other 
     law and subject to subparagraphs (B) and (C), the Community 
     Enterprise Board may waive any requirement applicable under 
     Federal law to the administration of, or provision of 
     benefits under, any covered Federal assistance program 
     included in an approved local flexibility plan, if that 
     waiver is--
       (i) reasonably necessary for the implementation of the 
     plan; and
       (ii) approved by a majority of members of the Community 
     Enterprise Board.
       (B) The Community Enterprise Board may not waive a 
     requirement under this subsection unless the Board finds that 
     waiver of the requirement shall not result in a qualitative 
     reduction in services or benefits for any individual or 
     family that is eligible for benefits under a covered Federal 
     assistance program.
       (C) The Community Enterprise Board may not waive any 
     requirement under this subsection--
       (i) that enforces any constitutional or statutory right of 
     an individual, including any right under--
       (I) title VI of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d et seq.);
       (II) section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 701 et seq.);
       (III) title IX of the Education Amendments of 1972 (86 
     Stat. 373 et seq.);
       (IV) the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
     seq.); or
       (V) the Americans with Disabilities Act of 1990;
       (ii) for payment of a non-Federal share of funding of an 
     activity under a covered Federal assistance program; or
       (iii) for grants received on a maintenance of effort basis.
       (3) Special assistance.--To the extent permitted by law, 
     the head of each Federal agency shall seek to provide special 
     assistance to a local government or qualified organization to 
     support implementation of an approved local flexibility plan, 
     including expedited processing, priority funding, and 
     technical assistance.
       (4) Evaluation and termination.--(A) A local government, in 
     accordance with regulations issued by the Community 
     Enterprise Board, shall--
       (i) submit such reports on and cooperate in such audits of 
     the implementation of its approved local flexibility plan; 
     and
       (ii) periodically evaluate the effect implementation of the 
     plan has had on--
       (I) individuals who receive benefits under the plan;
       (II) communities in which those individuals live; and
       (III) costs of administering covered Federal assistance 
     programs included in the plan.
       (B) No later than 90 days after the end of the 1-year 
     period beginning on the date of the approval by the Community 
     Enterprise Board of an approved local flexibility plan of a 
     local government, and annually thereafter, the local 
     government shall submit to the Community Enterprise Board a 
     report on the principal activities and achievements under the 
     plan during the period covered by the report, comparing those 
     achievements to the goals and performance criteria included 
     in the plan under subsection (f)(3)(C).
       (C)(i) If the Community Enterprise Board, after 
     consultation with the head of each Federal agency responsible 
     for administering a covered Federal assistance program 
     included in an approved local flexibility plan of a local 
     government, determines--
       (I) that the goals and performance criteria included in the 
     plan under subsection (f)(3)(C) have not been met; and
       (II) after considering any experiences gained in 
     implementation of the plan, that those goals and criteria are 
     sound;
     the Community Enterprise Board may terminate the 
     effectiveness of the plan.
       (ii) In terminating the effectiveness of an approved local 
     flexibility plan under this subparagraph, the Community 
     Enterprise Board shall allow a reasonable period of time for 
     appropriate Federal, State, and local agencies and qualified 
     organizations to resume administration of Federal programs 
     that are covered Federal assistance programs included in the 
     plan.
       (5) Final report; extension of plans.--(A) No later than 45 
     days after the end of the effective period of an approved 
     local flexibility plan of a local government, or at any time 
     that the local government determines that the plan has 
     demonstrated its worth, the local government shall submit to 
     the Community Enterprise Board a final report on its 
     implementation of the plan, including a full evaluation of 
     the successes and shortcomings of the plan and the effects of 
     that implementation on individuals who receive benefits under 
     those programs.
       (B) The Community Enterprise Board may extend the effective 
     period of an approved local flexibility plan for such period 
     as may be appropriate, based on the report of a local 
     government under subparagraph (A).
       (i) Community Advisory Committees.--
       (1) Establishment.--A local government that applies for 
     approval of a local flexibility plan under this section shall 
     establish a community advisory committee in accordance with 
     this subsection.
       (2) Functions.--A community advisory committee shall advise 
     a local government in the development and implementation of 
     its local flexibility plan, including advice with respect 
     to--
       (A) conducting public hearings;
       (B) representing the interest of low income individuals and 
     families; and
       (C) reviewing and commenting on all community policies, 
     programs, and actions under the plan which affect low income 
     individuals and families, with the purpose of ensuring 
     maximum coordination and responsiveness of the plan in 
     providing benefits under the plan to those individuals and 
     families.
       (3) Membership.--The membership of a community advisory 
     committee shall--
       (A) be comprised of--
       (i) low income individuals, who shall--

       (I) comprise at least one-third of the membership; and
       (II) include minority individuals who are participants or 
     who qualify to participate in eligible Federal assistance 
     programs;

       (ii) representatives of low income individuals and 
     families;
       (iii) persons with leadership experience in the private and 
     voluntary sectors;
       (iv) local elected officials;
       (v) representatives of participating qualified 
     organizations; and
       (vi) the general public; and
       (B) include individuals and representatives of community 
     organizations who shall help to enhance the leadership role 
     of the local government in developing a local flexibility 
     plan.
       (4) Opportunity for review and comment by committee.--
     Before submitting an application for approval of a final 
     proposed local flexibility plan, a local government shall 
     submit the final proposed plan for review and comment by a 
     community advisory committee established by the local 
     government.

[[Page S 9925]]

       (5) Committee review of reports.--Before submitting annual 
     or final reports on an approved assistance plan, a local 
     government or private nonprofit organization shall submit the 
     report for review and comment to the community advisory 
     committee.
       (j) Technical and Other Assistance.--
       (1) Technical assistance.--(A) The Community Enterprise 
     Board may provide, or direct that the head of a Federal 
     agency provide, technical assistance to a local government or 
     qualified organization in developing information necessary 
     for the design or implementation of a local flexibility plan.
       (B) Assistance may be provided under this subsection if a 
     local government makes a request that includes, in accordance 
     with requirements established by the Community Enterprise 
     Board--
       (i) a description of the local flexibility plan the local 
     government proposes to develop;
       (ii) a description of the groups of individuals to whom 
     benefits shall be provided under covered Federal assistance 
     programs included in the plan; and
       (iii) such assurances as the Community Enterprise Board may 
     require that--
       (I) in the development of the application to be submitted 
     under this title for approval of the plan, the local 
     government shall provide adequate opportunities to 
     participate to--
       (aa) low income individuals and families that shall receive 
     benefits under covered Federal assistance programs included 
     in the plan; and
       (bb) governmental agencies that administer those programs; 
     and

       (II) the plan shall be developed after considering fully--

       (aa) needs expressed by those individuals and families;
       (bb) community priorities; and
       (cc) available governmental resources in the geographic 
     area to which the plan shall apply.
       (2) Details to board.--At the request of the Chairman of 
     the Community Enterprise Board and with the approval of an 
     agency head who is a member of the Board, agency staff may be 
     detailed to the Community Enterprise Board on a 
     nonreimbursable basis.
       (k) Community Enterprise Board.--
       (1) Functions.--The Community Enterprise Board shall--
       (A) receive, review, and approve or disapprove local 
     flexibility plans for which approval is sought under this 
     section;
       (B) upon request from an applicant for such approval, 
     direct the head of an agency that administers a covered 
     Federal assistance program under which substantial Federal 
     assistance would be provided under the plan to provide 
     technical assistance to the applicant;
       (C) monitor the progress of development and implementation 
     of local flexibility plans;
       (D) perform such other functions as are assigned to the 
     Community Enterprise Board by this section; and
       (E) issue regulations to implement this section within 180 
     days after the date of its enactment.
       (2) Reports.--No less than 18 months after the date of the 
     enactment of this Act, and annually thereafter, the Community 
     Enterprise Board shall submit a report on the 5 Federal 
     regulations that are most frequently waived by the Community 
     Enterprise Board for local governments with approved local 
     flexibility plans to the President and the Congress. The 
     President shall review the report and determine whether to 
     amend or terminate such Federal regulations.
       (l) Termination and Repeal; Report.--
       (1) Termination and repeal.--This section is repealed on 
     the date that is 5 years after the date of the enactment of 
     this Act.
       (2) Report.--No later than 4 years after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the Congress, a report that--
       (A) describes the extent to which local governments have 
     established and implemented approved local flexibility plans;
       (B) evaluates the effectiveness of covered Federal 
     assistance programs included in approved local flexibility 
     plans; and
       (C) includes recommendations with respect to continuing 
     local flexibility.
                                 ______


                       BUMPERS AMENDMENT NO. 1513

  (Ordered to lie on the table.)
  Mr. BUMPERS submitted an amendment No. 1487 proposed by Mr. Dole to 
the bill S. 343, supra; as follows:

       On page 74, line 3 add ``independently'' immediately prior 
     to ``decide''.
                                 ______


               McCAIN (AND LIEBERMAN) AMENDMENT NO. 1514

  (Ordered to lie on the table.)
  Mr. McCAIN (for himself and Mr. Lieberman) submitted an amendment 
intended to be proposed by him to amendment No. 1487 proposed by Mr. 
Dole to the bill S. 343, supra; as follows:

       At the end of the amendment insert the following new 
     section:

     SEC.   . REPEAL OF MEDICARE AND MEDICAID COVERAGE DATA BANK.

       (a) Repeal.--
       (1) In general.--Section 13581 of the Omnibus Budget 
     Reconciliation Act of 1993 is hereby repealed.
       (2) Application of the social security act.--The Social 
     Security Act shall be applied and administered as if section 
     13581 of the Omnibus Budget Reconciliation Act of 1993 (and 
     the amendments made by such section) had not been enacted.
       (b) Study and Report.--
       (1) Study.--The Secretary of Health and Human Services 
     (hereafter in this subsection referred to as the 
     ``Secretary'') shall conduct a study on how to achieve the 
     objectives of the data bank described in section 1144 of the 
     Social Security Act (as in effect on the day before the date 
     of the enactment of this Act) in the most cost-effective 
     manner, taking into account--
       (A) the administrative burden of such data bank on private 
     sector entities and governments,
       (B) the possible duplicative reporting requirements of the 
     Health Care Financing Administration in effect on such date 
     of enactment, and
       (C) the legal ability of such entities and governments to 
     acquire the required information.
       (2) Reports.--The Secretary shall report to the Congress on 
     the results of the study described in paragraph (1) by not 
     later than 180 days after the date of the enactment of this 
     Act.

 Mr. McCAIN. Mr. President, this amendment would eliminate a 
large and unjustified administrative burden imposed on employers by an 
ill-considered piece of legislation passed 2 years ago. Specifically, 
it would repeal the Medicare and Medicaid coverage data bank, section 
13581 of OBRA 1993, a law that is extremely expensive, burdensome, 
punitive, and in my view, entirely unnecessary.
  The data bank law requires every employer who offers health care 
coverage to provide substantial and often difficult-to-obtain 
information on current and past employees and their dependents, 
including names, Social Security numbers, health care plans, and period 
of coverage. Employers that do not satisfy this considerable reporting 
obligation are subject to substantial penalties, possibly up to 
$250,000 per year or even more if the failure to report is found to be 
deliberate.
  The purported objective of the data bank law is to ensure 
reimbursement of costs to Medicare or Medicaid when a third party is 
the primary payor. This is a legitimate objective. However, if the 
objective of the data bank is to preserve Medicare and Medicaid funds, 
why is it necessary to mandate information on all employees, the vast 
majority of whom have no direct association with either the Medicare or 
Medicaid Program?
  Last year, I introduced S. 1933 to repeal the Medicare and Medicaid 
coverage data bank. Unfortunately, this bill did not pass in the 103d 
Congress, in part because of a questionable Congressional Budget Office 
analysis that estimated that the data bank would save the Federal 
Government about $1 billion. In contrast, the General Accounting Office 
found that ``as envisioned, the data bank would have certain inherent 
problems and likely achieve little or no savings to the Medicare and 
Medicaid programs.'' Still, due primarily to the fiction that the data 
bank would save money, S. 1933 was not enacted last year.
  The GAO report on the data bank law also found that employers are not 
certain of their specific reporting obligations, because HCFA has not 
provided adequate guidance. Much of the information which is required 
is not typically collected by employers, such as Social Security 
numbers of dependents and certain health insurance information. Some 
employers have even questioned whether it is legal for them under 
various privacy laws to seek to obtain the required information.
  The GAO report further found that employers are facing significant 
costs in complying with the reporting requirements, including the costs 
of redesigning their payroll and personnel systems. It cites one 
company with 44,000 employees that would
 have costs of approximately $52,000 and another company with 4,000 
employees that would have costs of $12,000. Overall, the American 
Payroll Association estimated last year that this requirement will cost 
between $50,000 and $100,000 per company.

  I would add that the reporting requirement applies only to employers 
that provide health insurance coverage to their employees. It is 
unconscionable that we are adding costs and penalties to those who have 
been most diligent in providing health coverage to their employees. The 
last thing that the Federal Government should do is impose 
disincentives to employee health care coverage, which is one of 

[[Page S 9926]]
the unintended consequences of the data bank law.
  Perhaps the most disturbing aspect of the data bank law is that its 
enormous costs have little or no corresponding benefit. The GAO report 
concluded that ``The additional information gathering and record 
keeping required by the data bank appears to provide little benefit to 
Medicare or Medicaid in recovering mistaken payments.'' This is in part 
because HCFA is already obtaining this information in a much more 
efficient manner than that required under OBRA 1993.
  For example, OBRA 1989 provides for HCFA to periodically match 
Medicare beneficiary data with Internal Revenue Service employment 
information--the Data Match Program. Also, HCFA directly asks 
beneficiaries about primary payor coverage. To the extent that the data 
bank duplicates these efforts, any potential savings will not be 
realized. It is clearly preferable to require HCFA to use the 
information it already has than to require the private sector to 
provide duplicative information.
  The GAO report found that ``the data match not only can provide the 
same information [as the Data Bank] without raising the potential 
problems described above, but it can do so at less cost.'' It also 
recognized that both the data match and data bank processes rely too 
much on an after-the-fact recovery approach, and recommended enhancing 
up-front identification of other insurance and avoiding erroneous 
payments. In this regard, it documented that HCFA has already initiated 
this prospective approach.
  For these and other reasons, the Labor and Human Resources 
Appropriations report last year contained language prohibiting the use 
of Federal funds for developing or maintaining the data bank. However, 
this provision by itself did not revoke the requirement that covered 
entities must still provide the required information on the health 
coverage of current and former employees and their families, This would 
have resulted in the bizarre situation in which covered employers would 
have had to report the information, but there would have been no data 
bank to process or retrieve it.
  Finally, in response to the public outcry about this Federal mandate, 
the Health Care Financing Administration [HCFA] indicated that it will 
not be enforcing the data bank's reporting requirements in fiscal year 
1995. It stated that in light of the refusal of Congress to fund the 
data bank, ``we have agreed to stay an administrative action to 
implement the current requirements, including the promulgation of 
reporting forms and instructions. Therefore, we will not expect 
employers to compile the necessary information or file the required 
reports. Likewise, no sanctions will be imposed for failure to file 
such reports.''
  This was a major step in the right direction. However, the data bank 
and its reporting requirements are still in the law and are still 
scheduled to be implemented in the next fiscal year. Consequently, this 
year I have reintroduced my data bank repeal bill, S. 194. I have 
recently been informed that the CBO has revised its scoring to 
recognize that the data bank would not save the Federal Government any 
money. This removed the only argument in favor of the data bank and the 
only major impediment to its repeal.
  Mr. President, the Federal Government continues to impose substantial 
financial burdens on the private sector without fully accepting its 
share of the burden to implement a program. We should once again expect 
the worst case scenario to occur: employers will provide the required 
information at substantial administrative burden, there will be no data 
bank in which to make use of it, and even if a data bank were funded 
and established, the information stored could not be used efficiently 
to save Medicare or Medicaid funds.
  I do not want this repeal to be construed, in any way, as opposition 
to HCFA obtaining the information it needs to administer the Medicare 
and Medicaid programs efficiently, and obtaining reimbursement from 
third party payors when appropriate. To assure that HCFA has the 
information it needs, the bill also requires the Secretary of HHS to 
conduct a study and report to Congress on how to achieve the purported 
objectives of the data bank in the most cost-effective manner possible.
  The Secretary's study would have to take into consideration the 
administrative costs and burden on the private sector and the 
Government of processing and providing the necessary information versus 
the benefits and savings that such reporting requirements would 
produce. It must also consider current HCFA reporting requirements and 
the ability of entities to obtain the required information legally and 
efficiently.
  Too often, Congress considers only the costs savings to the Federal 
Government of legislation while ignoring costs to other parties. The 
Medicare and Medicaid data bank is a case in point. Congress required 
information on millions of employees to save the Federal Government 
money. Yet, it will cost employers more money to comply than the 
Government saves. Congress must stop passing laws that impose large, 
unjustified, administrative burdens on other entities. It must consider 
the impact of its actions on the whole economy and not just on the 
Government.
  In summary, the reporting requirement for the Medicare and Medicaid 
data bank is duplicative, burdensome, ineffective, and unnecessary. The 
GAO has characterized it as creating an avalanche of unnecessary 
paperwork for both HCFA and employers. It penalizes employers who 
provide health care benefits to their workers--exactly the opposite 
goal we should be pursuing. The data bank should be repealed and a more 
cost-effective approach should be found to ensure that Medicare and 
Medicaid are appropriately reimbursed by primary payors.
  Mr. President, the 90 associations, organizations, and individual 
employers in this coalition continue to demand repeal of this law. 
Their message is clear. The Federal Government must stop imposing 
unjustified burdens on the private sector.
                                 ______


                         KYL AMENDMENT NO. 1515

  (Ordered to lie on the table.)
  Mr. KYL submitted an amendment intended to be proposed by him to 
amendment No. 1487 proposed by Mr. Dole to the bill S. 343, supra; as 
follows:

       On page 75, between lines 12 and 13, insert the following:
       ``(c) In reviewing an agency interpretation of a statute 
     made in a rulemaking or an adjudication, the reviewing court 
     shall--
       ``(1) hold erroneous and unlawful an agency interpretation 
     that fails to give effect to the unambiguously expressed 
     intent of Congress; or
       ``(2) if the statute is silent or ambiguous with respect to 
     an issue, hold arbitrary and capricious or an abuse of 
     discretion an agency action for which the agency has--
       ``(A) refused or failed to consider a permissible 
     construction of the statute on the ground that the statute 
     precludes consideration of that interpretation; or
       ``(B) failed to explain in a reasoned analysis why the 
     agency selected the interpretation it chose and why it 
     rejected other permissible interpretations of the statute.
       ``(d) Notwithstanding any other provision of law, the 
     provisions of subsection (c) shall apply to, and supplement, 
     the requirements contained in any statute for the review of 
     final agency action that is not otherwise subject to this 
     section.
                                 ______


                      JOHNSTON AMENDMENT NO. 1516

  Mr. JOHNSTON proposed an amendment to amendment No. 1487 proposed by 
Mr. Dole to the bill S. 343, supra; as follows:

       On page 25, line 19 strike out ``180 days'' and insert in 
     lieu thereof ``one year''.
                                 ______


                 BAUCUS (AND OTHERS) AMENDMENT NO. 1517

  Mr. JOHNSTON (for Mr. Baucus, Mr. Johnston, Mr. Lautenberg, Mr. 
Bradley, Mrs.  Murray, Mrs. Feinstein, Mr. Reid, Mr. Moynihan, Mr. 
Glenn, and Mr. Kennedy) proposed an amendment to amendment No. 1487 
proposed by Mr. Dole to the bill S. 343, supra; as follows:

       Strike out all of section 628 (on p. 42 beginning at line 3 
     strike out all through line 13 on p. 44) and renumber section 
     629 as section 628.
       On p. 73 in the table of contents for SUBCHAPTER II--
     ANALYSIS OF AGENCY RULES, replace ``628. Requirements for 
     major environmental management activities'' with ``628. 
     Petition for alternative method of compliance''.
       On page 57, lines 6 and 7 strike out the phrase ``or a 
     major environmental management activity''.
                                 ______


                        KOHL AMENDMENT NO. 1518

  (Ordered to lie on the table.)

[[Page S 9927]]

  Mr. KOHL submitted an amendment intended to be proposed by him to 
amendment No. 1487 proposed by Mr. Dole to the bill S. 343, supra; as 
follows:

       On page 46, insert between lines 4 and 5 the following:

     ``630. NONAPPLICABILITY TO CERTAIN NEGOTIATED RULES.

       ``(a) The provisions of subchapters II and III of chapter 6 
     of title 5, United States Code (as added by section 4 of this 
     Act) shall not apply to any rule developed pursuant to 
     procedures authorized by subchapter III of chapter 5 of such 
     title (relating to consensual rule-making through 
     negotiation), unless the rule to be proposed on promulgated 
     by the agency is significantly different from the consensus 
     developed through such procedures.
       ``(b) The Administrative Conference of the United States 
     shall, no later than March 31, 1996, submit a report to the 
     appropriate committees of the Congress describing the 
     experience of agencies with consensus procedures that in its 
     judgement are equivalent in effect to those specified by 
     subchapter III of chapter 5 and with respect to which it 
     would be appropriate to make applicable the provisions of 
     subsection (a) of this section. In addition, the report shall 
     include an assessment of the effects of the application of 
     the Federal Advisory Committee Act to consensual rule-making 
     procedures and may make recommendations in connection 
     therewith.''
                                 ______


                        FORD AMENDMENT NO. 1519

  (Ordered to lie on the table.)
  Mr. FORD submitted an amendment intended to be proposed by him to 
amendment No. 1487 proposed by Mr. Dole to the bill S. 343, supra; as 
follows:

       On page 14, line 16, strike the semicolon and insert the 
     following: ``, and includes Federal approval of a plan or 
     program adopted by 2 or more States that contains parallel or 
     coordinated provisions that were developed in response to a 
     Federal direction or under threat of Federal action;
                                 ______


                     REID AMENDMENTS NO. 1520-1522

  (Ordered to lie on the table.)
  Mr. REID submitted three amendments intended to be proposed by him to 
amendment No. 1487 proposed by Mr. Dole to the bill S. 343, supra; as 
follows:

                           Amendment No. 1520

       On page 42, line 19, strike out ``$10,000,000'' and insert 
     in lieu thereof ``$100,000,000''.
                                                                    ____


                           Amendment No. 1521

       On page 43, line 7, strike out ``or welfare'' and insert in 
     lieu thereof ``, welfare, or the environment''.
                                                                    ____


                           Amendment No. 1522

       On page 43, beginning with line 8, strike out all through 
     line 7 on page 44.
                                 ______


                      CAMPBELL AMENDMENT NO. 1523

  (Ordered to lie on the table.)
  Mr. CAMPBELL submitted an amendment intended to be proposed by him to 
amendment No. 1487 proposed by Mr. Dole to the bill S. 343, supra; as 
follows:

       On page 14, after line 16, amend section 621 of title 5, 
     United States Code, as added by section 4(a) of the amendment 
     No. 1487 by inserting after paragraph (5), the following new 
     paragraph:
       ``(6) The term `major rule' does not include a rule that 
     approves, in whole or in part, a plan or program that 
     provides for the implementation, maintenance, or enforcement 
     of Federal standards or requirements adopted by an individual 
     State;''
                                 ______


                        BOXER AMENDMENT NO. 1524

  Mrs. BOXER (for herself, Mrs. Murray, Ms. Mikulski, Mr. Lautenberg, 
Mr. Bradley, Mrs. Feinstein, Mr. Dorgan, Mr. Kennedy, Mr. Reid, Mr. 
Biden, Mr. Leahy, Ms. Moseley-Braun, Mr. Bumpers, and Mr. Daschle) 
proposed an amendment to the bill, supra; as follows:

       On page 19, line 7, strike the period and insert the 
     following: ``; or (xiii) a rule intended to implement section 
     354 of the Public Health Service Act (42 U.S.C. 263b) (as 
     added by section 2 of the Mammography Quality Standards Act 
     of 1992).''.
                                 ______


                        DOLE AMENDMENT NO. 1525

  Mr. DOLE proposed an amendment to amendment No. 1524, proposed by 
Mrs. Boxer, to the bill, S. 343, supra; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:
       It is the sense of the Senate that nothing in this Act is 
     intended to delay the timely promulgation of any regulations 
     that would meet a human health or safety threat, including 
     any rules that would reduce illness or mortality from the 
     following: heart disease, cancer, stroke, chronic obstructive 
     lung diseases, pneumonia and influenza, diabetes mellitus, 
     human immunodeficiency virus infection, or water- or food-
     borne pathogens, polio, tuberculosis, measles, viral 
     hepatitis, syphilis, or all other infectious and parasitic 
     diseases.
                                 ______


                    GRAHAM AMENDMENTS NO. 1526-1529

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted four amendments intended to be proposed by him 
to amendment No. 1487, proposed by Mr. Dole, to the bill, S. 343, 
supra; as follows:

                           Amendment No. 1526

       On page 4, line 9, insert before the semicolon the 
     following: ``, including, where practicable, performance-
     based standards''.
                                                                    ____


                           Amendment No. 1527

       On page 7, line 18, insert ``any performance-based 
     standards,'' after ``of,''.
                                                                    ____


                           Amendment No. 1528

       On page 77, line 6, insert before the semicolon the 
     following: ``, including any performance-based standards''.
                                                                    ____


                           Amendment No. 1529

       On page 92, line 20, insert ``the achievement of any 
     performance-based standards and'' after ``statement,''.
                                 ______


                CAMPBELL (AND OTHERS) AMENDMENT NO. 1530

  (Ordered to lie on the table.)
  Mr. CAMPBELL (for himself, Mr. Warner, and Mr. Robb) submitted an 
amendment intended to be proposed by them to amendment No. 1487 
proposed by Mr. Dole to the bill S. 343, supra; as follows:

       On page 14, after line 16, amend section 621 of title 5, 
     United States Code, as added by section 4(a) of the amendment 
     No. 1487 by inserting after paragraph (5), the following new 
     paragraph:
       ``(6) The term `major rule' does not include a rule that 
     approves, in whole or in part, a plan or program that 
     provides for the implementation, maintenance, or enforcement 
     of Federal standards or requirements adopted by an individual 
     State that is not part of a coordinated, multi-state program.
                                 ______


                        HATCH AMENDMENT NO. 1531

  Mr. HATCH proposed an amendment to amendment No. 1487 proposed by Mr. 
Dole to the bill S. 343, supra; as follows:

       At the appropriate place in the amendment, add the 
     following:
       It is the sense of the Senate that nothing in this Act is 
     intended to delay the timely promulgation of any regulations 
     that would meet a human health or safety threat, including 
     any rules that would reduce illness or mortality from the 
     following: heart disease, cancer, stroke, chronic obstructive 
     lung diseases, pneumonia and influenza, diabetes mellitus, 
     human immunodeficiency virus infection, or water or food 
     borne pathogens, polio, tuberculosis, measles, viral 
     hepatitis, syphilis, or all other infectious and parasitic 
     diseases.
                                 ______


                        BOXER AMENDMENT NO. 1532

  Mrs. BOXER (for herself, Mrs. Murray, Ms. Mikulski, Mr. Lautenberg, 
Mr. Bradley, Mrs. Feinstein, Mr. Dorgan, Mr. Kennedy, Mr. Reid, Mr. 
Bumpers, Mr. Biden, Mr. Leahy, Ms. Moseley-Braun, Mr. Daschle, and Mr. 
Cohen) proposed an amendment to the bill, supra; as follows:

       On page 19, line 7, strike the period and insert the 
     following: ``; or (xiii) a rule intended to implement section 
     354 of the Public Health Service Act (42 U.S.C. 263b) (as 
     added by section 2 of the Mammography Quality Standards Act 
     of 1992).''.
                                 ______


                DOMENICI (AND OTHERS) AMENDMENT NO. 1533

  Mr. DOMENICI (for himself, Mr. Bond, Mr. Bingaman, Mr. Cohen, and Mr. 
Abraham) proposed an amendment to amendment No. 1487, proposed by Mr. 
Dole, to the bill, S. 343, supra; as follows:

                           Amendment No. 1533

       At the appropriate place in the Dole substitute, add the 
     following new title:
          TITLE II--AGENCY RESPONSIVENESS TO SMALL BUSINESSES
               Subtitle A--Small Business Advocacy Review

     SEC. 201. DEFINITIONS.

       For purposes of this subtitle, the following definitions 
     shall apply:
       (1) Agency.--The term ``agency'' means--
       (A) with respect to the Environmental Small Business 
     Advocacy Review Panel, the Environmental Protection Agency; 
     and
       (B) with respect to the Occupational Safety and Health 
     Small Business Advocacy Review Panel, the Occupational Safety 
     and Health Administration of the Department of Labor.

[[Page S 9928]]

       (2) Agency head.--The term ``agency head'' means--
       (A) with respect to the Environmental Small Business 
     Advocacy Review Panel, the Administrator of the Environmental 
     Protection Agency; and
       (B) with respect to the Occupational Safety and Health 
     Small Business Advocacy Review Panel, the Assistant Secretary 
     for Occupational Safety and Health of the Department of 
     Labor.
       (3) Chairperson.--The term ``chairperson'' means--
       (A) with respect to the Environmental Small Business 
     Advocacy Review Panel, the chairperson of such review panel 
     designated under section 202(a); and
       (B) with respect to the Occupational Safety and Health 
     Small Business Advocacy Review Panel, the chairperson of such 
     review panel designated under section 202(b).
       (4) Chief counsel for advocacy.--The term ``Chief Counsel 
     for Advocacy'' means the Chief Counsel for Advocacy of the 
     Small Business Administration.
       (5) Final rule.--The term ``final rule'' means any final 
     rule or interim final rule issued by an agency for which a 
     review panel has been established under section 202(c)(2)(A).
       (6) Office.--The term ``Office'' means the Office of 
     Advocacy of the Small Business Administration.
       (7) Review panel.--The term ``review panel'' means--
       (A) with respect to a significant rule of the Environmental 
     Protection Agency, an Environmental Small Business Advocacy 
     Review Panel established under section 202(c)(2)(A); and
       (B) with respect to a significant rule of the Occupational 
     Safety and Health Administration of the Department of Labor, 
     an Occupational Safety and Health Small Business Advocacy 
     Review Panel established under section 202(c)(2)(A).
       (8) Rule.--The term ``rule''--
       (A) means an agency statement of general applicability and 
     future effect, which the agency intends to have the force and 
     effect of law, that is designed to implement, interpret, or 
     prescribe law or policy or to describe the procedure or 
     practice requirements of the agency; and
       (B) does not include any rule that is limited to agency 
     organization, management, or personnel matters.
       (9) Significant rule.--The term ``significant rule'' means 
     any rule proposed by an agency that the chairperson, in 
     consultation with the Administrator of the Office of 
     Information and Regulatory Affairs within the Office of 
     Management and Budget, reasonably estimates would have--
       (A) an annual aggregate impact on the private sector in an 
     amount equal to not less than $50,000,000; and
       (B) an impact on small businesses.
       (10) Small business.--The term ``small business'' has the 
     same meaning as the term ``small business concern'' in 
     section 3 of the Small Business Act.

     SEC. 202. SMALL BUSINESS ADVOCACY CHAIRPERSONS.

       (a) Chairperson of Environmental Review Panels.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator of the Environmental 
     Protection Agency shall designate an employee of the 
     Environmental Protection Agency, who is a member of the 
     Senior Executive Service (as that term is defined in section 
     2101a of title 5, United States Code) and whose immediate 
     supervisor is appointed by the President, to serve as the 
     chairperson of each Environmental Small Business Advocacy 
     Review Panel and to carry out this subtitle with respect to 
     the Environmental Protection Agency.
       (2) Disability or absence.--If the employee designated to 
     serve as chairperson under paragraph (1) is unable to serve 
     as chairperson because of disability or absence, the 
     Administrator of the Environmental Protection Agency shall 
     designate another employee who meets the qualifications of 
     paragraph (1) to serve as chairperson.
       (b) Chairperson of OSHA Review Panels.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Assistant Secretary for 
     Occupational Safety and Health of the Department of Labor 
     shall designate an employee of the Occupational Safety and 
     Health Administration of the Department of Labor, who is a 
     member of the Senior Executive Service (as that term is 
     defined in section 2101a of title 5, United States Code) and 
     whose immediate supervisor is appointed by the President, to 
     serve as the chairperson of each Occupational Safety and 
     Health Small Business Advocacy Review Panel and to carry out 
     the purposes of this subtitle with respect to the 
     Occupational Safety and Health Administration.
       (2) Disability or absence.--If the employee designated to 
     serve as chairperson under paragraph (1) is unable to serve 
     as chairperson because of disability of absence, the 
     Assistant Secretary for Occupational Safety and Health of the 
     Department of Labor shall designate another employee who 
     meets the qualifications of paragraph (1) to serve as 
     chairperson.
       (c) Duties of the Chairperson.--
       (1) Initial determination and notification.--
       (A) Timing.--The chairperson shall take the actions 
     described in subparagraph (B) not later than 45 days before 
     the earlier of--
       (i) the date of publication in the Federal Register by an 
     agency of a general notice of proposed rulemaking under 
     section 553(b) of title 5, United States Code, or any other 
     provision of law; or
       (ii) the date of publication in the Federal Register by an 
     agency of a proposed rule.
       (B) Actions.--With respect to a proposed rule that is the 
     subject of a publication described in clause (i) or (ii) of 
     subparagraph (A), the chairperson shall--
       (i) determine whether the subject proposed rule constitutes 
     a significant rule, as defined in section 201(9); and
       (ii) if the proposed rule is determined to constitute a 
     significant rule, notify the Administrator of the Office of 
     Information and Regulatory Affairs within the Office of 
     Management and Budget and the Chief Counsel for Advocacy to 
     appoint review panel members for evaluation of the subject 
     significant rule.
       (2) Establishment of review panels.--
       (A) In general.--Not later than 15 days after receiving 
     notice under paragraph (1)(B)(ii), or such longer period as 
     the chairperson may allow, review panel members shall be 
     appointed by the Administrator of the Office of Information 
     and Regulatory Affairs within the Office of Management and 
     Budget, the Chief Counsel for Advocacy, and the chairperson 
     in accordance with section 203(b).
       (B) Exceptions.--A review panel shall be established in 
     accordance with subparagraph (A) unless the chairperson, in 
     consultation with the Chief Counsel for Advocacy, determines 
     (and notifies the agency in writing of such determination) 
     that--
       (i) a good faith effort to secure enough non-Federal 
     employee review panel members necessary to constitute a 
     quorum with respect to the subject significant rule was 
     unsuccessful; and
       (ii) compliance with this subtitle is not required with 
     respect to the subject significant rule due to a lack of 
     availability of private sector interests.
       (d) Duties Regarding Final Rule.--
       (1) In general.--Not later than 45 days before the issuance 
     of a significant final rule, the chairperson shall--
       (A) notify panel members of the intent of the agency to 
     issue a final rule;
       (B) provide panel members with a dated draft of the final 
     rule to be issued;
       (C) solicit comments from panel members in connection with 
     the duties of the review panel described in section 203(a); 
     and
       (D) if the chairperson determines that such action is 
     necessary, call one or more meetings of the review panel and, 
     if a quorum is present, direct the review panel to review, 
     discuss, or clarify any issue related to the subject final 
     rule or the preparation of the report under paragraph (2).
       (2) Report.--Except as provided in section 204(b), not 
     later than 5 days before the issuance of a final rule, the 
     chairperson shall submit a report in accordance with section 
     204(a).

     SEC. 203. SMALL BUSINESS ADVOCACY REVIEW PANELS.

       (a) General Duties.--Before any publication described in 
     clause (i) or (ii) of section 202(c)(1)(A) of a proposed 
     significant rule, and again before the issuance of such rule 
     as a final rule, the review panel shall, in accordance with 
     this subtitle provide technical guidance to the agency, 
     including guidance relating to--
       (1) the applicability of the proposed rule to small 
     businesses;
       (2) compliance with the rule by small businesses;
       (3) the consistency or redundancy of the proposed rule with 
     respect to other Federal, State, and local laws or 
     regulations and recordkeeping requirements imposed on small 
     businesses; and
       (4) any other concerns posed by the proposed rule that may 
     impact significantly upon small businesses.
       (b) Membership.--Each review panel shall be composed of--
       (1) the chairperson;
       (2) not less than 1 nor more than 3 members appointed by 
     the chairperson from among employees of the agency who would 
     be responsible for carrying out the subject significant rule;
       (3) 1 member appointed by the Administrator of the Office 
     of Information and Regulatory Affairs within the Office of 
     Management and Budget from among the employees of that office 
     who have specific knowledge of or responsibilities relating 
     to the regulatory responsibilities of the agency that would 
     be responsible for carrying out the subject significant rule;
       (4) 1 member appointed by the Chief Counsel for Advocacy 
     from among the employees of the Office; and

[[Page S 9929]]

       (5) not less than 1 nor more than 3 members selected by the 
     Chief Counsel for Advocacy from among individuals who are 
     representatives of--
       (A) small businesses that would be impacted by the 
     significant rule;
       (B) small business sectors or industries that would be 
     especially impacted by the significant rule; or
       (C) organizations whose memberships are comprised of a 
     cross-section of small businesses.
       (c) Period of Appointment; Vacancies.--
       (1) Period of appointment.--Each review panel member, other 
     than the chairperson, shall be appointed for a term beginning 
     on the date on which the appointment is made and ending on 
     the date on which the report or written record is submitted 
     under section 204.
       (2) Vacancies.--Any vacancy on a review panel shall not 
     affect the powers of the review panel, but shall be filled in 
     the same manner as the original appointment.
       (d)  Quorum.--A quorum for the conduct of business by a 
     review panel shall consist of 1 member appointed from each of 
     paragraphs (2) through (5) of subsection (b).
       (e) Meetings.--
       (1) In general.--Subject to paragraph (2), the meetings of 
     the review panel shall be at the call of the chairperson.
       (2) Initial meeting.--Not later than 15 days after all 
     review panel members necessary to constitute a quorum have 
     been appointed under subsection (b), the chairperson shall 
     conduct the initial meeting of the review panel.
       (f) Powers of Review Panel.--
       (1) Information from federal agencies.--A review panel may 
     secure, directly from any Federal department or agency, such 
     information as the review panel considers necessary to carry 
     out this subtitle. Upon request of the chairperson, the head 
     of such department or agency shall furnish such information 
     to the review panel.
       (2) Postal services.--A review panel may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (g) Noncompensation of Members.--
       (1) In general.--Members of the review panel who are not 
     officers or employees of the Federal Government shall serve 
     without compensation.
       (2) Federal employees.--Members of the review panel who are 
     officers or employees of the Federal Government shall serve 
     without compensation in addition to that received for their 
     services as officers or employees of the Federal Government.
       (h) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to a review panel without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (i) Consultation With Other Entities.--In carrying out this 
     subtitle, the chairperson shall consult and coordinate, to 
     the maximum extent practicable, the activities of the review 
     panel with each office of the agency that is responsible for 
     the provision of data or technical advice concerning a 
     significant rule.

     SEC. 204. REPORT.

       (a) In General.--Except as provided in subsection (b), the 
     chairperson shall, in accordance with section 202(d)(2), 
     submit to the appropriate employees of the agency who would 
     be responsible for carrying out the subject significant rule 
     and to the appropriate committees of the Senate and the House 
     of Representatives a report, which shall include--
       (1) the findings and recommendations of the review panel 
     with respect to the significant rule, including both the 
     majority and minority views of the review panel members, 
     regardless of the consensus of opinions that may derive from 
     the meetings of the review panel; and
       (2) recommendations regarding whether a survey with respect 
     to the subject significant rule should be conducted under 
     section 207, and--
       (A) if so--
       (i) a timeframe during which the survey should be 
     conducted, taking into account the time required to implement 
     the rule and to gather appropriate data; and
       (ii) any recommendations of the review panel regarding the 
     contents of the survey; and
       (B) if not, the reasons why the survey is not recommended.
       (b) Failure To Submit Report.--If the chairperson fails to 
     submit a report under subsection (a), not later than the date 
     on which the final rule is issued, the chairperson shall--
       (1) prepare a written record of such failure detailing the 
     reasons therefore; and
       (2) submit a copy of such written record to the head of the 
     agency and to the appropriate committees of the Congress.

     SEC. 205. APPLICABILITY OF OTHER LAW; JUDICIAL REVIEW.

       (a) Inapplicability of Federal Advisory Committee Act.--The 
     provisions of the Federal Advisory Committee Act do not apply 
     to any review panel established in accordance with this 
     subtitle.
       (b) Prohibition on Judicial Review.--No action or inaction 
     of a review panel, including any recommendations or advice of 
     a review panel or any procedure or process of a review panel, 
     may be subject to judicial review by a court of the United 
     States under chapter 7 of title 5, United States Code, or any 
     other provision of law.

     SEC. 206. SURVEY.

       (a) In General.--If a review panel makes a recommendation 
     in any report submitted under section 204(a) that a survey 
     should be conducted with respect to a significant rule, the 
     agency shall contract with a private sector auditing firm or 
     other survey-related organization to conduct a survey of a 
     cross-section of the small businesses impacted by the rule.
       (b) Contents of Survey.--Each survey conducted under this 
     section shall address the impact of the significant rule on 
     small businesses, including--
       (1) the applicability of the rule to various small 
     businesses;
       (2) the degree to which the rule is easy to read and 
     comprehend;
       (3) the costs to implement the rule;
       (4) any recordkeeping requirements imposed by the rule; and
       (5) any other technical or general issues related to the 
     rule.
       (c) Availability of Survey Results.--The results of each 
     survey conducted under this section shall be made available--
       (1) to each interested Federal agency; and
       (2) upon request, to any other interested party, including 
     organizations, individuals, State and local governments, and 
     the Congress.
                    Subtitle B--Regulatory Ombudsmen

     SEC. 211. SMALL BUSINESS AND AGRICULTURE OMBUDSMEN.

       The Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) by redesignating section 30 as section 31; and
       (2) by inserting after section 29 the following new 
     section:

     ``SEC. 30. OVERSIGHT OF REGULATORY ENFORCEMENT.

       ``(a) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Board.--The term `Board' means a Small Business 
     Regulatory Fairness Board established under subsection (c).
       ``(2) Covered agency.--The term `covered agency' means any 
     agency that, as of the date of enactment of the Comprehensive 
     Regulatory Reform Act of 1995, has promulgated any rule for 
     which a regulatory flexibility analysis was required under 
     section 605 of title 5, United States Code, and any other 
     agency that promulgates any such rule, as of the date of such 
     promulgation.
       ``(3) Ombudsman.--The term `ombudsman' means a Regional 
     Small Business and Agriculture Ombudsman designated under 
     subsection (b).
       ``(4) Region.--The term `region' means any area for which 
     the Administrator has established a regional office of the 
     Administration pursuant to section 4(a).
       ``(5) Rule.--The term `rule' has the same meaning as in 
     section 601(2) of title 5, United States Code.
       ``(b) Ombudsman.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Comprehensive Regulatory Reform Act of 
     1995, the Administrator shall designate Regional Small 
     Business and Agriculture Ombudsmen in accordance with this 
     subsection.
       ``(2) Duties.--Each ombudsman designated under paragraph 
     (1) shall--
       ``(A) on a confidential basis, solicit and receive comments 
     from small business concerns regarding the enforcement 
     activities of covered agencies;
       ``(B) based on comments received under subparagraph (A), 
     annually assign and publish a small business responsiveness 
     rating to each covered agency;
       ``(C) publish periodic reports compiling the comments 
     received under subparagraph (A);
       ``(D) coordinate the activities of the Small Business 
     Regulatory Fairness Board established under subsection (c); 
     and
       ``(E) establish a toll-free telephone number to receive 
     comments from small business concerns under subparagraph 
     (A).''.

     SEC. 212. SMALL BUSINESS REGULATORY FAIRNESS BOARDS.

       Section 30 of the Small Business Act (as added by section 
     211 of this Act) is amended by adding at the end the 
     following new subsection:
       ``(c) Small Business Regulatory Fairness Boards.--
       ``(1) In general.--Not later than 180 days after the date 
     of enactment of the Comprehensive Regulatory Reform Act of 
     1995, the Administrator shall establish in each region a 
     Small Business Regulatory Fairness Board in accordance with 
     this subsection.
       ``(2) Duties.--Each Board established under paragraph (1) 
     shall--
       ``(A) advise the ombudsman on matters of concern to small 
     business concerns relating to the enforcement activities of 
     covered agencies;
       ``(B) issue advisory findings and recommendations with 
     respect to small business concerns;
       ``(C) review and approve, prior to publication--

[[Page S 9930]]

       ``(i) each small business responsiveness rating assigned 
     under subsection (b)(2)(B); and
       ``(ii) each periodic report prepared under subsection 
     (b)(2)(C); and
       ``(D) prepare written opinions regarding the reasonableness 
     and understandability of rules issued by covered agencies.
       ``(3) Membership.--Each Board shall consist of--
       ``(A) 1 member appointed by the President;
       ``(B) 1 member appointed by the Speaker of the House of 
     Representatives;
       ``(C) 1 member appointed by the Minority Leader of the 
     House of Representatives;
       ``(D) 1 member appointed by the Majority Leader of the 
     Senate; and
       ``(E) 1 member appointed by the Minority Leader of the 
     Senate.
       ``(4) Period of appointment; vacancies.--
       ``(A) Period of appointment.--
       ``(i) Presidential appointees.--Each member of the Board 
     appointed under subparagraph (A) of paragraph (2) shall be 
     appointed for a term of 3 years, except that the initial 
     member appointed under such subparagraph shall be appointed 
     for a term of 1 year.
       ``(ii) House of representatives appointees.--Each member of 
     the Board appointed under subparagraph (B) or (C) of 
     paragraph (2) shall be appointed for a term of 3 years, 
     except that the initial members appointed under such 
     subparagraphs shall each be appointed for a term of 2 years.
       ``(iii) Senate appointees.--Each member of the Board 
     appointed under subparagraph (D) or (E) of paragraph (2) 
     shall be appointed for a term of 3 years.
       ``(B) Vacancies.--Any vacancy on the Board--
       ``(i) shall not affect the powers of the Board; and
       ``(ii) shall be filled in the same manner and under the 
     same terms and conditions as the original appointment.
       ``(5) Chairperson.--The Board shall select a Chairperson 
     from among the members of the Board.
       ``(6) Meetings.--
       ``(A) In general.--The Board shall meet at the call of the 
     Chairperson.
       ``(B) Initial meeting.--Not later than 90 days after the 
     date on which all members of the Board have been appointed, 
     the Board shall hold its first meeting.
       ``(7) Quorum.--A majority of the members of the Board shall 
     constitute a quorum for the conduct of business, but a lesser 
     number may hold hearings.
       ``(8) Powers of the board.--
       ``(A) Hearings.--The Board or, at its direction, any 
     subcommittee or member of the Board, may, for the purpose of 
     carrying out the provisions of this section, hold such 
     hearings, sit and act at such times and places, take such 
     testimony, and receive such evidence as the Board determines 
     to be appropriate.
       ``(B) Witness allowances and fees.--Section 1821 of title 
     28, United States Code, shall apply to witnesses requested to 
     appear at any hearing of the Board. The per diem and mileage 
     allowances for any witness shall be paid from funds available 
     to pay the expenses of the Board.
       ``(C) Information from federal agencies.--Upon the request 
     of the Chairperson, the Board may secure directly from the 
     head of any Federal department or agency such information as 
     the Board considers necessary to carry out this section.
       ``(D)  Postal services.--The Board may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       ``(E) Donations.--The Board may accept, use, and dispose of 
     donations of services or property.
       ``(9) Board personnel matters.--
       ``(A) Compensation.--Members of the Board shall serve 
     without compensation.
       ``(B) Travel expenses.--Members of the Board shall be 
     allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the Board.''.

     SEC. 213. JUDICIAL REVIEW.

       (a) Prohibition.--No action or inaction of a Regional Small 
     Business and Agriculture Ombudsman or a Small Business 
     Regulatory Fairness Board, including any recommendations or 
     advice of a Regional Small Business and Agriculture Ombudsman 
     or a Small Business Regulatory Fairness Board or any 
     procedure or process of a Regional Small Business and 
     Agriculture Ombudsman or a Small Business Regulatory Fairness 
     Board, may be subject to judicial review by a court of the 
     United States under chapter 7 of title 5, United States Code, 
     or any other provision of law.
       (b) Definitions.--For purposes of this section--
       (1) the term ``Regional Small Business and Agriculture 
     Ombudsman'' means any ombudsman designated under section 
     30(b) of the Small Business Act, as added by section 211 of 
     this Act.
       (2) the term ``Small Business Regulatory Fairness Board'' 
     means any board established under section 30(c) of the Small 
     Business Act, as added by section 212 of this Act.
                                 ______


                        BROWN AMENDMENT NO. 1534

  (Ordered to lie on the table.)
  Mr. BROWN submitted an amendment intended to be proposed by him to 
amendment No. 1534, proposed by Mr. Dole, supra; as follows:

       At the appropriate place, insert the following:

     SEC.   . EXECUTIVE PREEMPTION OF STATE LAW.

       (a) In General.--Chapter 5 of title 5, United States Code, 
     is amended by inserting after section 559 the following new 
     section:

     ``Sec. 560. Preemption of State law

       ``(a) No agency shall construe any authorization in a 
     statute for the issuance of regulations as authorizing 
     preemption of State law by rulemaking or other agency action, 
     unless--
       ``(1) the statute expressly authorizes issuance of 
     preemptive regulations;
       ``(2) there is clear and convincing evidence that the 
     Congress intended to delegate to the agency the authority to 
     issue regulations preempting State law; or
       ``(3) the agency concludes that the exercise of State 
     authority directly conflicts with the exercise of Federal 
     authority under the Federal statute.
       ``(b) Any regulatory preemption of State law shall be 
     narrowly tailored to achieve the objectives of the statute 
     pursuant to which the regulations are promulgated.
       ``(c) When an agency proposes to act through rulemaking or 
     other agency action to preempt State law, the agency shall 
     provide all affected States notice and an opportunity for 
     appropriate participation in the proceedings.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 5 of title 5, United States Code, is amended by 
     adding after the item for section 559 the following:

``560. Preemption of State law.''.
                                 ______


               LAUTENBERG (AND OTHERS) AMENDMENT NO. 1535

  Mr. LAUTENBERG (for himself, Mr. Baucus, Mr. Lieberman, Mr. Kerry, 
Mr. Bradley, Mrs. Boxer, Mr. Simon Mr. Kennedy, and Mr. Moynihan) 
proposed an amendment to amendment No. 1487 proposed by Mr. Dole to the 
bill, S. 343, supra; as follows:

       On page 72, strike lines 1 through 15.
                                 ______


                FEINGOLD (AND OTHERS) AMENDMENT NO. 1536

  Mr. FEINGOLD proposed an amendment to the amendment No. 1487 proposed 
by Mr. Dole to the bill, S. 343, supra; as follows:

       At the appropriate place in the substitute amendment, add 
     the following new section:

     SEC.   . EQUAL ACCESS TO JUSTICE REFORM.

       (a) Short Title.--This section may be cited as the ``Equal 
     Access to Justice Reform Amendments of 1995''.
       (b) Award of Costs and Fees.--
       (1) Administrative proceedings.--Section 504(a)(2) of title 
     5, United States Code, is amended by inserting after ``(2)'' 
     the following: ``At any time after the commencement of an 
     adversary adjudication covered by this section, the 
     adjudicative officer may ask a party to declare whether such 
     party intends to seek an award of fees and expenses against 
     the agency should it prevail.''
       (2) Judicial proceedings.--Section 2412(d)(1)(B) of title 
     28, United States Code, is amended by inserting after ``(B)'' 
     the following: ``At any time after the commencement of an 
     adversary adjudication covered by this section, the court may 
     ask a party to declare whether such party intends to seek an 
     award of fees and expenses against the agency should it 
     prevail.''.
       (c) Hourly Rate for Attorney Fees.--
       (1) Administrative proceedings.--Section 504(b)(1)(A)(ii) 
     of title 5, United States Code, is amended by striking out 
     all beginning with ``$75 per hour'' and inserting in lieu 
     thereof ``$125 per hour unless the agency determines by 
     regulation that an increase in the cost-of-living based on 
     the date of final disposition justifies a higher fee.);''.
       (2) Judicial proceedings.--Section 2412(d)(2)(A)(ii) of 
     title 28, United States Code, is amended by striking out all 
     beginning with ``$75 per hour'' and inserting in lieu thereof 
     ``$125 per hour unless the court determines that an increase 
     in the cost-of-living based on the date of final disposition 
     justifies a higher fee.);''.
       (d) Payment From Agency Appropriations.--
       (1) Administrative proceedings.--Section 504(d) of title 5, 
     United States Code, is amended by adding at the end thereof 
     the following: ``Fees and expenses awarded under this 
     subsection may not be paid from the claims and judgments 
     account of the Treasury from funds appropriated pursuant to 
     section 1304 of title 31.''.
       (2) Judicial proceedings.--Section 2412(d)(4) of title 28, 
     United States Code, is amended by adding at the end thereof 
     the following: ``Fees and expenses awarded under this 
     subsection may not be paid from the claims and judgments 
     account of the Treasury from funds appropriated pursuant to 
     section 1304 of title 31.''.
       (e) Offers of Settlement.--
       (1) Administrative proceedings.--Section 504 of title 5, 
     United States Code, is amended--
       (A) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively; and
       (B) by inserting after subsection (d) the following new 
     subsection:

[[Page S 9931]]

       ``(e)(1) At any time after the filing of an application for 
     fees and other expenses under this section, an agency from 
     which a fee award is sought may serve upon the applicant an 
     offer of settlement of the claims made in the application. If 
     within 10 days after service of the offer the applicant 
     serves written notice that the offer is accepted, either 
     party may then file the offer and notice of acceptance 
     together with proof of service thereof.
       ``(2) An offer not accepted shall be deemed withdrawn. The 
     fact that an offer is made but not accepted shall not 
     preclude a subsequent offer. If any award of fees and 
     expenses for the merits of the proceeding finally obtained by 
     the applicant is not more favorable than the offer, the 
     applicant shall not be entitled to receive an award for 
     attorneys' fees or other expenses incurred in relation to the 
     application for fees and expenses after the date of the 
     offer.''.
       (2) Judicial proceedings.--Section 2412 of title 28, United 
     States Code, is amended--
       (A) by redesignating subsections (e) and (f) as subsections 
     (f) and (g), respectively; and
       (B) by inserting after subsection (d) the following new 
     subsection:
       ``(e)(1) At any time after the filing of an application for 
     fees and other expenses under this section, an agency of the 
     United States from which a fee award is sought may serve upon 
     the applicant an offer of settlement of the claims made in 
     the application. If within 10 days after service of the offer 
     the applicant serves written notice that the offer is 
     accepted, either party may then file the offer and notice of 
     acceptance together with proof of service thereof.
       ``(2) An offer not accepted shall be deemed withdrawn. The 
     fact that an offer is made but not accepted shall not 
     preclude a subsequent offer. If any award of fees and 
     expenses for the merits of the proceeding finally obtained by 
     the applicant is not more favorable than the offer, the 
     applicant shall not be entitled to receive an award for 
     attorneys' fees or other expenses incurred in relation to the 
     application for fees and expenses after the date of the 
     offer.''.
       (f) Elimination of Substantial Justification Standard.--
       (1) Administrative proceedings.--Section 504 of title 5, 
     United States Code, is amended--
       (A) in subsection (a)(1) by striking out all beginning with 
     ``, unless the adjudicative officer'' through ``expenses are 
     sought''; and
       (B) in subsection (a)(2) by striking out ``The party shall 
     also allege that the position of the agency was not 
     substantially justified.''.
       (2) Judicial proceedings.--Section 2412(d) of title 28, 
     United States Code, is amended--
       (A) in paragraph (1)(A) by striking out ``, unless the 
     court finds that the position of the United States was 
     substantially justified or that special circumstances make an 
     award unjust'';
       (B) in paragraph (1)(B) by striking out ``The party shall 
     also allege that the position of the United States was not 
     substantially justified. Whether or not the position of the 
     United States was substantially justified shall be determined 
     on the basis of the record (including the record with respect 
     to the action or failure to act by the agency upon which the 
     civil action is based) which is made in the civil action for 
     which fees and other expenses are sought.''; and
       (C) in paragraph (3) by striking out``, unless the court 
     finds that during such adversary adjudication the position of 
     the United States was substantially justified, or that 
     special circumstances make an award unjust''.
       (g) Reports to Congress.--
       (1) Administrative proceedings.--No later than 180 days 
     after the date of the enactment of this Act, the 
     Administrative Conference of the United States shall submit a 
     report to the Congress--
       (A) providing an analysis of the variations in the 
     frequency of fee awards paid by specific Federal agencies 
     under the provisions of section 504 of title 5, United States 
     Code; and
       (B) including recommendations for extending the application 
     of such sections to other Federal agencies and administrative 
     proceedings.
       (2) Judicial proceedings.--No later than 180 days after the 
     date of the enactment of this Act, the Department of Justice 
     shall submit a report to the Congress--
       (A) providing an analysis of the variations in the 
     frequency of fee awards paid by specific Federal districts 
     under the provisions of section 2412 of title 28, United 
     States Code; and
       (B) including recommendations for extending the application 
     of such sections to other Federal judicial proceedings.
       (h) Effective Date.--The provisions of this section and the 
     amendments made by this Act shall take effect 30 days after 
     the date of the enactment of this Act and shall apply only to 
     an administrative complaint filed with a Federal agency or a 
     civil action filed in a United States court on or after such 
     date.
                                 ______


                PRYOR (AND FEINGOLD) AMENDMENT NO. 1537

  Mr. PRYOR (for himself and Mr. Feingold) proposed an amendment to the 
amendment No. 1487 proposed by Mr. Dole to the bill, S. 343, supra; as 
follows:

       At the appropriate place in the substitute amendment, 
     insert the following new section:

     SEC.   . CONFLICT OF INTEREST RELATING TO COST-BENEFIT 
                   ANALYSES AND RISK ASSESSMENTS.

       (a) Information Bearing on Possible Conflict of Interest.--
       (1) Definition.--For purposes of this section, the term 
     ``contract'' means any contract, agreement, or other 
     arrangement, whether by competitive bid or negotiation, 
     entered into with a Federal agency for
       any cost-benefit analysis or risk assessment under 
     subchapter II or III of chapter 6 of title 5, United 
     States Code (as added by section 4(a) of this Act). This 
     section shall not apply to the provisions of section 633.
       (2) In general.--When an agency proposes to enter into a 
     contract with a person or entity, such person shall provide 
     to the agency before entering into such contract all relevant 
     information, as determined by the agency, bearing on whether 
     that person has a possible conflict of interest with respect 
     to being able to render impartial, technically sound, or 
     objective assistance or advice in light of other activities 
     or relationships with other persons.
       (3) Subcontractor information.--A person entering into a 
     contract shall ensure, in accordance with regulations 
     prescribed by the head of the agency, compliance with this 
     section by any subcontractor (other than a supply 
     subcontractor) of such person in the case of any subcontract 
     of more than $10,000.
       (b) Required Finding That No Conflict of Interest Exists or 
     That Conflicts Have Been Avoided; Mitigation of Conflict When 
     Conflict Is Unavoidable.--
       (1) In general.--Subject to paragraph (2), the head of an 
     agency shall not enter into any contract unless the agency 
     head finds, after evaluating all information provided under 
     subsection (a) and any other information otherwise made 
     available that--
       (A) it is unlikely that a conflict of interest would exist; 
     or
       (B) such conflict has been avoided after appropriate 
     conditions have been included in such contract.
       (2) Exception.--If the head of an agency determines that a 
     conflict of interest exists and that such conflict of 
     interest cannot be avoided by including appropriate 
     conditions in the contract, the agency head may enter into 
     such contract if the agency head--
       (A) determines that it is in the best interests of the 
     United States to enter into the contract; and
       (B) includes appropriate conditions in such contract to 
     mitigate such conflict.
       (c) Rules and Regulations.--No later than 240 days after 
     the date of the enactment of this Act, the Federal 
     Acquisition Review Council shall publish rules for the 
     implementation of this section, in accordance with section 
     553 of title 5, United States Code, without regard to 
     subsection (a) of such section.
                                 ______


                FEINGOLD (AND OTHERS) AMENDMENT NO. 1538

  Mr. FEINGOLD (for himself, Mr. Pryor, and Mr. Simon) proposed an 
amendment to amendment No. 1487 proposed by Mr. Dole to the bill S. 
343, supra; as follows:

       On page 57, strike out line 18 through line 25 and insert 
     in lieu thereof the following:
       ``(B) may exclude any person with substantial and relevant 
     expertise as a participant on the basis that such person has 
     a potential financial interest in the outcome, or may include 
     such person if such interest is fully disclosed to the 
     agency, and the agency includes such disclosure as part of 
     the record, unless the result of the review would have a 
     direct and predictable effect on a substantial financial 
     interest of such person.''
                                 ______


               HUTCHISON (AND OTHERS) AMENDMENT NO. 1539

  Mrs. HUTCHISON (for herself, Mr. Heflin, Mr. Hatch, Mr. Nickles, Mr. 
Craig, and Mr. Lott) proposed an amendment to amendment No. 1487 
proposed by Mr. Dole to the bill S. 343, supra; as follows:

       Insert at the appropriate place:

     SECTION 709. AGENCY INTERPRETATIONS IN CIVIL AND CRIMINAL 
                   ACTIONS.

       ``(a) No civil or criminal penalty shall be imposed by a 
     court, and no civil administrative penalty shall be imposed 
     by an agency, for the violation of a rule--
       ``(1) if the court or agency, as appropriate, finds that 
     the rule failed to give the defendant fair warning of the 
     conduct that the rule prohibits or requires; or
       ``(2) if the court or agency, as appropriate, finds that 
     the defendant--
       ``(A) reasonably in good faith determined, based upon the 
     language of the rule published in the Federal Register, that 
     the defendant was in compliance with, exempt from, or 
     otherwise not subject to, the requirements of the rule; or
       ``(B) engaged in the conduct alleged to violate the rule in 
     reliance upon a written statement issued by an appropriate 
     agency official, or by an appropriate official of a State 
     authority to which had been delegated responsibility for 
     implementing or ensuring compliance with the rule, stating 
     that the action complied with, or that the defendant was 
     exempt from, or otherwise not subject to, the requirements of 
     the rule.
       ``(b) In an action brought to impose a civil or criminal 
     penalty for the violation of a rule, the court, or an agency, 
     as appropriate, shall not give deference to any 
     interpretation of such rule relied on by an agency in 

[[Page S 9932]]
     the action that had not been timely published in the Federal Register 
     or communicated to the defendant by the method described in 
     paragraph (a)(2)(B) in a timely manner by the agency, or by a 
     state official described in paragraph (a)(2)(B), prior to the 
     commencement of the alleged violation.
       ``(c) Except as provided in subsection (d), no agency shall 
     bring any judicial or administrative action to impose a civil 
     or criminal penalty based upon--
       ``(1) an interpretation of a statute, rule, guidance, 
     agency statement of policy, or license requirement or 
     condition, or
       ``(2) a written determination of fact made by an 
     appropriate agency official, or state official as described 
     in paragraph (a)(2)(B), after disclosure of the material 
     facts at the time and appropriate review,

     if such interpretation or determination is materially 
     different from a prior interpretation or determination made 
     by the agency or the state official described in (a)(2)(B), 
     and if such person, having taken into account all information 
     that was reasonably available at the time of the original 
     interpretation or determination, reasonably relied in good 
     faith upon the prior interpretation or determination.
       ``(d) Nothing in this section shall be construed to 
     preclude an agency:
       ``(1) from revising a rule or changing its interpretation 
     of a rule in accordance with sections 552 and 553 of this 
     title, and, subject to the provisions of this section, 
     prospectively enforcing the requirements of such rule as
      revised or reinterpreted and imposing or seeking a civil or 
     criminal penalty for any subsequent violation of such rule 
     as revised or reinterpreted.
       ``(2) from making a new determination of fact, and based 
     upon such determination, prospectively applying a particular 
     legal requirement;
       ``(e) This section shall apply to any action for which a 
     final unappealable judicial order has not been issued prior 
     to the effective date.
                                 ______


                  GLENN (AND LEVIN) AMENDMENT NO. 1540

  Mr. GLENN (for himself and Mr. Levin) proposed an amendment to 
amendment No. 1487 proposed by Mr. Dole to the bill S. 343, supra; as 
follows:

       On page 66, after line 15, insert:

     ``SEC. 643. PUBLIC DISCLOSURE OF INFORMATION.

       ``(a) OMB Responsibility.--The Director or other designated 
     officer to whom authority is delegated under section 642, in 
     carrying out the provisions of such 641, shall establish 
     procedures (covering all employees of the Director or other 
     designated officer) to provide public and agency access to 
     information concerning regulatory review actions, including--
       ``(1) disclosure to the public on an ongoing basis of 
     information regarding the status of regulatory actions 
     undergoing review;
       ``(2) disclosure to the public, no later than publication 
     of, or other substantive notice to the public concerning a 
     regulatory action, of--
       ``(A) all written communications, regardless of form or 
     format, including drafts of all proposals and associated 
     analyses, between the Director or other designated officer 
     and the regulatory agency;
       ``(B) all written communications, regardless of form or 
     format, between the Director or other designated officer and 
     any person not employed by the executive branch of the 
     Federal Government relating to the substance of a regulatory 
     action;
       ``(C) a record of all oral communications relating to the 
     substance of a regulatory action between the Director or 
     other designated officer and any person not employed by the 
     executive branch of the Federal Government; and
       ``(D) a written explanation of any review action and the 
     date of such action; and
       ``(3) disclosure to the regulatory agency, on a timely 
     basis, of--
       ``(A) all written communications between the Director or 
     other designated officer and any person who is not employed 
     by the executive branch of the Federal Government;
       ``(B) a record of all oral communications, and an 
     invitation to participate in meetings, relating to the 
     substance of a regulatory action between the Director or 
     other designated officer and any person not employed by the 
     executive branch of the Federal Government; and
       ``(C) a written explanation of any review action taken 
     concerning an agency regulatory action.
       ``(b) Agency Responsibility.--The head of each agency 
     shall--
       ``(1) disclose to the public the identification of any 
     regulatory action undergoing review under this section and 
     the date upon which such action was submitted for such 
     review; and
       ``(2) describe in any applicable rulemaking notice the 
     results of any review under this section, including an 
     explanation of any significant changes made to the regulatory 
     action as a consequence of the review.
       On page 66, line 16, strike ``643'' and insert in lieu 
     thereof ``644''.
       On page 67, line 1, strike ``644'' and insert in lieu 
     thereof ``645''.
     

                          ____________________