[Congressional Record Volume 141, Number 176 (Wednesday, November 8, 1995)]
[House]
[Pages H11939-H11976]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               AMENDMENTS

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

                               H.R. 2586

                        Offered By: Mr. Chrysler

       Amendment No. 1:
            TITLE II--ABOLISHMENT OF DEPARTMENT OF COMMERCE

     SEC. 2001. SHORT TITLE.

       This title may be cited as the ``Department of Commerce 
     Dismantling Act''.

     SEC. 2002. TABLE OF CONTENTS.

       The table of contents for this title is as follows:

            TITLE II--ABOLISHMENT OF DEPARTMENT OF COMMERCE

Sec. 2001. Short title.
Sec. 2002. Table of contents.

           Subtitle A--Abolishment of Department of Commerce

Sec. 2101. Abolishment of Department of Commerce.
Sec. 2102. Resolution and termination of Department functions.
Sec. 2103. Responsibilities of the Director of the Office of Management 
              and Budget.
Sec. 2104. Personnel.
Sec. 2105. Plans and reports.
Sec. 2106. GAO audit and access to records.
Sec. 2107. Conforming amendments.
Sec. 2108. Privatization framework.
Sec. 2109. Priority placement programs for Federal employees affected 
              by a reduction in force attributable to this title.
Sec. 2110. Funding reductions for transferred functions.
Sec. 2111. Definitions.

Subtitle B--Disposition of Various Programs, Functions, and Agencies of 
                         Department of Commerce

Sec. 2201. Abolishment of Economic Development Administration and 
              transfer of functions.
Sec. 2202. Technology Administration.
Sec. 2203. Reorganization of the Bureau of the Census and the Bureau of 
              Economic Analysis.
Sec. 2204. Terminated functions of NTIA.
Sec. 2205. National Oceanic and Atmospheric Administration.
Sec. 2206. National Scientific, Oceanic, and Atmospheric 
              Administration.
Sec. 2207. Miscellaneous terminations; moratorium on program 
              activities.
Sec. 2208. Effective date.

        Subtitle C--Office of United States Trade Representative

                     Chapter 1--General Provisions

Sec. 2301. Definitions.

        Chapter 2--Office Of United States Trade Representative


                      SUBCHAPTER A--ESTABLISHMENT

Sec. 2311. Establishment of the Office.
Sec. 2312. Functions of the USTR.


                         SUBCHAPTER B--OFFICERS

Sec. 2321. Deputy Administrator of the Office.
Sec. 2322. Deputy United States Trade Representatives.
Sec. 2323. Assistant administrators.
Sec. 2324. Director General for Export Promotion.
Sec. 2325. General Counsel.
Sec. 2326. Inspector General.
Sec. 2327. Chief Financial Officer.


                 SUBCHAPTER C--TRANSFERS TO THE OFFICE

Sec. 2331. Office of the United States Trade Representative.
Sec. 2332. Transfers from the Department of Commerce.
Sec. 2333. Trade and Development Agency.
Sec. 2334. Export-Import Bank.
Sec. 2335. Overseas Private Investment Corporation.
Sec. 2336. Consolidation of export promotion and financing activities.
Sec. 2337. Additional trade functions.

[[Page H 11940]]



                SUBCHAPTER D--ADMINISTRATIVE PROVISIONS

Sec. 2341. Personnel provisions.
Sec. 2342. Delegation and assignment.
Sec. 2343. Succession.
Sec. 2344. Reorganization.
Sec. 2345. Rules.
Sec. 2346. Funds transfer.
Sec. 2347. Contracts, grants, and cooperative agreements.
Sec. 2348. Use of facilities.
Sec. 2349. Gifts and bequests.
Sec. 2350. Working capital fund.
Sec. 2351. Service charges.
Sec. 2352. Seal of office.


                     SUBCHAPTER E--RELATED AGENCIES

Sec. 2361. Interagency Trade Organization.
Sec. 2362. National Security Council.
Sec. 2363. International Monetary Fund.


                  SUBCHAPTER F--CONFORMING AMENDMENTS

Sec. 2371. Amendments to general provisions.
Sec. 2372. Repeals.
Sec. 2373. Conforming amendments relating to Executive Schedule 
              positions.


                      SUBCHAPTER G--MISCELLANEOUS

Sec. 2381. Effective date.
Sec. 2382. Interim appointments.
Sec. 2383. Funding reductions resulting from reorganization.

          Subtitle D--Patent and Trademark Office Corporation

Sec. 2401. Short title.

                 Chapter 1--Patent And Trademark Office

Sec. 2411. Establishment of Patent and Trademark Office as a 
              Corporation.
Sec. 2412. Powers and duties.
Sec. 2413. Organization and management.
Sec. 2414. Management Advisory Board.
Sec. 2415. Independence from Department of Commerce.
Sec. 2416. Trademark Trial and Appeal Board.
Sec. 2417. Board of Patent Appeals and Interferences.
Sec. 2418. Suits by and against the Corporation.
Sec. 2419. Annual report of Commissioner.
Sec. 2420. Suspension or exclusion from practice.
Sec. 2421. Funding.
Sec. 2422. Audits.
Sec. 2423. Transfers.

            Chapter 2--Effective Date; Technical Amendments

Sec. 2431. Effective date.
Sec. 2432. Technical and conforming amendments.

                  Subtitle E--Miscellaneous Provisions

Sec. 2501. References.
Sec. 2502. Exercise of authorities.
Sec. 2503. Savings provisions.
Sec. 2504. Transfer of assets.
Sec. 2505. Delegation and assignment.
Sec. 2506. Authority of Director of the Office of Management and Budget 
              with respect to functions transferred.
Sec. 2507. Certain vesting of functions considered transfers.
Sec. 2508. Availability of existing funds.
Sec. 2509. Definitions.

       Subtitle F--Citizens Commission on 21st Century Government

Sec. 2601. Short title and purpose.
Sec. 2602. Citizens Commission on 21st Century Government.
Sec. 2603. Department and agency cooperation.
Sec. 2604. Hearings.
Sec. 2605. Commission procedures.
Sec. 2606. Framework for the Federal Government in the 21st century.
Sec. 2607. Proposal for reorganizing the executive branch.
Sec. 2608. Procedures for making recommendations.
Sec. 2609. Congressional consideration of reform proposals.
Sec. 2610. Distribution of assets.
Sec. 2611. Agency defined.
           Subtitle A--Abolishment of Department of Commerce

     SEC. 2101. ABOLISHMENT OF DEPARTMENT OF COMMERCE.

       (a) Abolishment of Department.--The Department of Commerce 
     is abolished effective on the abolishment date specified in 
     subsection (c).
       (b) Transfer of Department Functions to OMB.--Except as 
     otherwise provided in this title, all functions that 
     immediately before the abolishment date specified in 
     subsection (c) are authorized to be performed by the 
     Secretary of Commerce, any other officer or employee of the 
     Department acting in that capacity, or any agency or office 
     of the Department, are transferred to the Director of the 
     Office of Management and Budget effective on that abolishment 
     date.
       (c) Abolishment Date.--The abolishment date referred to in 
     subsections (a) and (b) is the earlier of--
       (1) the last day of the 6-month period beginning on the 
     date of the enactment of this Act; or
       (2) September 30, 1996.

     SEC. 2102. RESOLUTION AND TERMINATION OF DEPARTMENT 
                   FUNCTIONS.

       (a) Resolution of Functions.--During the period beginning 
     on the date of enactment of this Act and ending on the 
     functions termination date specified in subsection (c)--
       (1) the disposition and resolution of functions of the 
     Department of Commerce shall be completed in accordance with 
     this title; and
       (2) the Director shall resolve all functions that are 
     transferred to the Director under section 2101(b) and are not 
     otherwise continued under this title.
       (b) Termination of Functions.--All functions that are 
     transferred to the Director under section 2101(b) that are 
     not otherwise continued by this title shall terminate on the 
     functions termination date specified in subsection (c).
       (c) Functions Termination Date.--The functions termination 
     date referred to in subsections (a) and (b) is the last day 
     of the 3-year period beginning on the date of the enactment 
     of this Act.

     SEC. 2103. RESPONSIBILITIES OF THE DIRECTOR OF THE OFFICE OF 
                   MANAGEMENT AND BUDGET.

       (a) In General.--The Director of the Office of Management 
     and Budget shall be responsible for the implementation of 
     this subtitle, including--
       (1) the administration and wind-up, during the wind-up 
     period, of all functions transferred to the Director under 
     section 2101(b);
       (2) the administration and wind-up, during the wind-up 
     period, of any outstanding obligations of the Federal 
     Government under any programs terminated by this title; and
       (3) taking such other actions as may be necessary to wind-
     up any outstanding affairs of the Department of Commerce 
     before the end of the wind-up period.
       (b) Delegation of Functions.--The Director may delegate to 
     any officer of the Office of Management and Budget or to any 
     other Federal department or agency head the performance of 
     the Director's functions under this subtitle, except the 
     Director's planning and reporting responsibilities under 
     section 2105, to the extent that the Director determines that 
     such delegation would further the purposes of this subtitle.
       (c) Transfer of Assets and Personnel.--In connection with 
     any delegation of functions under subsection (b), the 
     Director may transfer within the Office or to the department 
     or agency concerned such assets, funds, personnel, records, 
     and other property relating to the delegated function as the 
     Director determines to be appropriate.
       (d) Authorities of the Director.--For purposes of 
     performing the functions of the Director under this subtitle 
     and subject to the availability of appropriations, the 
     Director may--
       (1) enter into contracts;
       (2) employ experts and consultants in accordance with 
     section 3109 of title 5, United States Code, at rates for 
     individuals not to exceed the per diem rate equivalent to the 
     rate for level IV of the Executive Schedule; and
       (3) utilize, on a reimbursable basis, the services, 
     facilities, and personnel of other Federal agencies.

     SEC. 2104. PERSONNEL.

       Effective on the abolishment date specified in section 
     2101(c), there are transferred to the Office all individuals 
     who--
       (1) immediately before the abolishment date, were officers 
     or employees of the Department of Commerce; and
       (2) in their capacity as such an officer or employee, 
     performed functions that are transferred to the Director 
     under section 2101(b).

     SEC. 2105. PLANS AND REPORTS.

       (a) Initial Implementation Plan.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Director shall submit a report, 
     through the President, to the Congress specifying those 
     actions taken and necessary to be taken--
       (A) to resolve those programs and functions terminated on 
     the date of enactment of this Act; and
       (B) to implement the additional transfers and other program 
     dispositions provided for in this title.
       (2) Contents.--The report shall include--
       (A) recommendations for additional legislation, if any, 
     needed to reflect or otherwise to implement the abolishments, 
     transfers, terminations, and other dispositions of programs 
     and functions under this title; and
       (B) a description of actions planned and taken to comply 
     with limitations imposed by this Act on future spending for 
     continued functions.
       (b) Annual Status Reports.--At the end of each of the 
     first, second, and third years following the date of 
     enactment of this Act, the Director shall submit a report, 
     through the President, to the Congress which--
       (1) specifies the status and progress of actions taken to 
     implement this title and to wind-up the affairs of the 
     Department of Commerce by the functions termination date 
     specified in section 2102(c);
       (2) includes any recommendations the Director may have for 
     additional legislation; and
       (3) describes actions taken to comply with limitations 
     imposed by this Act on future spending for continued 
     functions.
       (c) GAO Reports.--Not later than 60 days after issuance of 
     each report under subsections (a) and (b), the Comptroller 
     General of the United States shall submit to the Congress a 
     report which--
       (1) evaluates the report under that subsection; and
       (2) includes any recommendations the Comptroller General 
     considers appropriate.

     SEC. 2106. GAO AUDIT AND ACCESS TO RECORDS.

       (a) Audit of Persons Performing Functions Pursuant to This 
     Act.--All agencies, corporations, organizations, and other 
     persons of any description which under the authority of the 
     United States perform any 

[[Page H 11941]]
     function or activity pursuant to this title shall be subject to audit 
     by the Comptroller General of the United States with respect 
     to such function or activity.
       (b) Audit of Persons Providing Certain Goods or Services.--
     All persons and organizations which, by contract, grant, or 
     otherwise, provide goods or services to, or receive financial 
     assistance from, any agency or other person performing 
     functions or activities under or referred to by this title 
     shall be subject to audit by the Comptroller General of the 
     United States with respect to such provision of goods or 
     services or receipt of financial assistance.
       (c) Provisions Applicable to audits Under This Section.--
       (1) Nature and scope of audit.--The Comptroller General of 
     the United States shall determine the nature, scope, terms, 
     and conditions of audits conducted under this section.
       (2) Coordination with other provisions of law.--The 
     authority of the Comptroller General of the United States 
     under this section shall be in addition to any audit 
     authority available to the Comptroller General under other 
     provisions of this title or any other law.
       (3) Rights of access, examination, and copying.--The 
     Comptroller General of the United States, and any duly 
     authorized representative of the Comptroller General, shall 
     have access to, and the right to examine and copy, all 
     records and other recorded information in any form, and to 
     examine any property within the possession or control of any 
     agency or person which is subject to audit under this 
     section, which the Comptroller General considers relevant to 
     an audit conducted under this section.
       (4) Enforcement of right of access.--The right of access of 
     the Comptroller General of the United States to information 
     under this section shall be enforceable under section 716 of 
     title 31, United States Code.
       (5) Maintenance of confidential records.--Section 716(e) of 
     title 31, United States Code, shall apply to information 
     obtained by the Comptroller General under this section.

     SEC. 2107. CONFORMING AMENDMENTS.

       (a) Presidential Succession.--Section 19(d)(1) of title 3, 
     United States Code, is amended by striking ``Secretary of 
     Commerce,''.
       (b) Executive Departments.--Section 101 of title 5, United 
     States Code, is amended by striking the following item: ``The 
     Department of Commerce.''.
       (c) Secretary's Compensation.--Section 5312 of title 5, 
     United States Code, is amended by striking the following 
     item: ``Secretary of Commerce.''.
       (d) Compensation for Positions at Level III.--Section 5314 
     of title 5, United States Code, is amended--
       (1) by striking the following item:
       ``Under Secretary of Commerce, Under Secretary of Commerce 
     for Economic Affairs, Under Secretary of Commerce for Export 
     Administration and Under Secretary of Commerce for Travel and 
     Tourism.'';
       (2) by striking the following item:
       ``Under Secretary of Commerce for Oceans and Atmosphere, 
     the incumbent of which also serves as Administrator of the 
     National Oceanic and Atmospheric Administration.''; and
       (3) by striking the following item:
       ``Under Secretary of Commerce for Technology.''.
       (e) Compensation for Positions at Level IV.--Section 5315 
     of title 5, United States Code, is amended--
       (1) by striking the following item:
       ``Assistant Secretaries of Commerce (11).'';
       (2) by striking the following item:
       ``General Counsel of the Department of Commerce.'';
       (3) by striking the following item:
       ``Assistant Secretary of Commerce for Oceans and 
     Atmosphere, the incumbent of which also serves as Deputy 
     Administrator of the National Oceanic and Atmospheric 
     Administration.'';
       (4) by striking the following item:
       ``Director, National Institute of Standards and Technology, 
     Department of Commerce.'';
       (5) by striking the following item:
       ``Inspector General, Department of Commerce.'';
       (6) by striking the following item:
       ``Chief Financial Officer, Department of Commerce.''; and
       (7) in the item relating to the Bureau of the Census, by 
     striking ``, Department of Commerce''.
       (f) Compensation for Positions at Level V.--Section 5316 of 
     title 5, United States Code, is amended--
       (1) by striking the following item:
       ``Director, United States Travel Service, Department of 
     Commerce.''; and
       (2) by striking the following item:
       ``National Export Expansion Coordinator, Department of 
     Commerce.''.
       (g) Inspector General Act of 1978.--The Inspector General 
     Act of 1978 (5 U.S.C. App.) is amended--
       (1) in section 9(a)(1), by striking subparagraph (B);
       (2) in section 11(1), by striking ``Commerce,''; and
       (3) in section 11(2), by striking ``Commerce,''.
       (h) Effective Date.--The amendments made by this section 
     shall be effective on the abolishment date specified in 
     section 2101(c).

     SEC. 2108. PRIVATIZATION FRAMEWORK.

       (a) In General.--The Office of Management and Budget shall 
     privatize each function designated for privatization under 
     subtitle B within 18 months of the date of the transfer of 
     such function to the Office. The Office shall pursue such 
     forms of privatization arrangements as the Office considers 
     appropriate to best serve the interests of the United States. 
     If the Office is unable to privatize a function within 18 
     months, the Office shall report its inability to the Congress 
     with its recommendations as to the appropriate disposition of 
     the function and its assets.
       (b) Role of the Federal Government.--No privatization 
     arrangement made under subsection (a) shall include any 
     future role for, or accountability to, the Federal Government 
     unless it is necessary to assure the continued accomplishment 
     of a specific Federal objective. The Federal role should be 
     the minimum necessary to accomplish Federal objectives.
       (c) Assets.--In privatizing a function, the Office of 
     Management and Budget shall take any action necessary to 
     preserve the value of the assets of a function during the 
     period the Office holds such assets and to continue the 
     performance of the function to the extent necessary to 
     preserve the value of the assets or to accomplish core 
     Federal objectives.

     SEC. 2109. PRIORITY PLACEMENT PROGRAMS FOR FEDERAL EMPLOYEES 
                   AFFECTED BY A REDUCTION IN FORCE ATTRIBUTABLE 
                   TO THIS TITLE.

       (a) In General.--Subchapter I of chapter 33 of title 5, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 3329b. Priority placement programs for employees 
       affected by a reduction in force attributable to the 
       Department of Commerce Dismantling Act

       ``(a)(1) For the purpose of this section, the term 
     `affected agency'--
       ``(A) except as provided in subparagraph (B), means an 
     Executive agency to which personnel are transferred in 
     connection with a transfer of function under the Department 
     of Commerce Dismantling Act, and
       ``(B) with respect to employees of the Department of 
     Commerce in general administration, the Inspector General's 
     office, or the General Counsel's office, or who provided 
     overhead support to other components of the Department on a 
     reimbursable basis, means all agencies to which functions of 
     those employees are transferred under the Department of 
     Commerce Dismantling Act.
       ``(2) This section applies with respect to any reduction in 
     force that--
       ``(A) occurs within 12 months after the date of the 
     enactment of this section; and
       ``(B) is due to--
       ``(i) the termination of any function of the Department of 
     Commerce; or
       ``(ii) the agency's having excess personnel as a result of 
     a transfer of function described in paragraph (1), as 
     determined by--
       ``(I) the Director of the Office of Management and Budget, 
     in the case of a function transferred to the Office of 
     Management and Budget; or
       ``(II) the head of the agency, in the case of any other 
     function.
       ``(b) As soon as practicable after the date of the 
     enactment of this section, each affected agency shall 
     establish an agencywide priority placement program to 
     facilitate employment placement for employees who--
       ``(1) are scheduled to be separated from service due to a 
     reduction in force described in subsection (a)(2); or
       ``(2) are separated from service due to such a reduction in 
     force.
       ``(c)(1) Each agencywide priority placement program shall 
     include provisions under which a vacant position shall not be 
     filled by the appointment or transfer of any individual from 
     outside of that agency if--
       ``(A) there is then available any individual described in 
     paragraph (2) who is qualified for the position; and
       ``(B) the position--
       ``(i) is at the same grade (or pay level) or not more than 
     1 grade (or pay level) below that of the position last held 
     by such individual before placement in the new position; and
       ``(ii) is within the same commuting area as the 
     individual's last-held position (as referred to in clause 
     (i)) or residence.
       ``(2) For purposes of an agencywide priority placement 
     program, an individual shall be considered to be described in 
     this paragraph if such individual's most recent performance 
     evaluation was at least fully successful (or the equivalent), 
     and such individual is either--
       ``(A) an employee of such agency who is scheduled to be 
     separated, as described in subsection (b)(1); or
       ``(B) an individual who became a former employee of such 
     agency as a result of a separation, as described in 
     subsection (b)(2).
       ``(d)(1) Nothing in this section shall affect any priority 
     placement program of the Department of Defense which is in 
     operation as of the date of the enactment of this section.
       ``(2) Nothing in this section shall impair placement 
     programs within agencies subject to reductions in force 
     resulting from causes other than the Department of Commerce 
     Dismantling Act.
       ``(e) An individual shall cease to be eligible to 
     participate in a program under this section on the earlier 
     of--
       ``(1) the conclusion of the 12-month period beginning on 
     the date on which that individual first became eligible to 
     participate under subsection (c)(2); or
       ``(2) the date on which the individual declines a bona fide 
     offer (or if the individual 

[[Page H 11942]]
     does not act on the offer, the last day for accepting such offer) from 
     the affected agency of a position described in subsection 
     (c)(1)(B).''.
       (b) Technical and Conforming Amendments.--(1) Title 5, 
     United States Code, is amended by redesignating the second 
     section which is designated as section 3329 as section 3329a.
       (2) The table of sections for chapter 33 of title 5, United 
     States Code, is amended by striking the item relating to the 
     second section which is designated as section 3329 and 
     inserting the following:

``3329a.  Government-wide list of vacant positions.
``3329b.  Priority placement programs for employees affected by a 
              reduction in force attributable to the Department of 
              Commerce Dismantling Act.''.

     SEC. 2110. FUNDING REDUCTIONS FOR TRANSFERRED FUNCTIONS.

       (a) Funding Reductions.--Except as provided in subsection 
     (b), the total amount obligated or expended by the United 
     States in performing functions transferred under this title 
     to the Director or to the Office from the Department of 
     Commerce, or any of its officers or components, shall not 
     exceed--
       (1) for the first fiscal year that begins after the 
     abolishment date specified in section 2101(c), 75 percent of 
     the total amount appropriated to the Department of Commerce 
     for the performance of such functions in fiscal year 1995; 
     and
       (2) for the second fiscal year that begins after the 
     abolishment date specified in section 2101(c) and for each 
     fiscal year thereafter, 65 percent of the total amount 
     appropriated to the Department of Commerce for the 
     performance of such functions in fiscal year 1995.
       (b) Exception.--Subsection (a) shall not apply to 
     obligations or expenditures incurred as a direct consequence 
     of the termination, transfer, or other disposition of 
     functions described in subsection (a) pursuant to this title.
       (c) Rule of Construction.--This section shall take 
     precedence over any other provision of law unless such 
     provision explicitly refers to this section and makes an 
     exception to it.
       (d) Responsibilities of the Director.--The Director shall--
       (1) ensure compliance with the requirements of this 
     section; and
       (2) include in each report under sections 2105(a) and (b) a 
     description of actions taken to comply with such 
     requirements.

     SEC. 2111. DEFINITIONS.

       For purposes of this subtitle, the following definitions 
     apply:
       (1) Director.--The term ``Director'' means the Director of 
     the Office of Management and Budget.
       (2) Office.--The term ``Office'' means the Office of 
     Management and Budget.
       (3) Wind-up period.--The term ``wind-up period'' means the 
     period beginning on the date of the enactment of this Act and 
     ending on the functions termination date specified in section 
     2102(c).
Subtitle B--Disposition of Various Programs, Functions, and Agencies of 
                         Department of Commerce

     SEC. 2201. ABOLISHMENT OF ECONOMIC DEVELOPMENT ADMINISTRATION 
                   AND TRANSFER OF FUNCTIONS.

       (a) In General.--The Public Works and Economic Development 
     Act of 1965 (40 U.S.C. 3131 et seq.) is amended by striking 
     all after the first section and inserting the following:

     ``SEC. 2. ADMINISTRATOR DEFINED.

       ``In this Act, the term `Administrator' means the 
     Administrator of the Small Business Administration.
                    ``TITLE I--STATEMENT OF PURPOSE

     ``SEC. 101. FINDINGS AND DECLARATION.

       ``(a) Findings.--Congress finds that--
       ``(1) the maintenance of the national economy at a high 
     level is vital to the best interests of the United States, 
     but that some of our regions, counties, and communities are 
     suffering substantial and persistent unemployment and 
     underemployment that cause hardship to many individuals and 
     their families, and waste invaluable human resources;
       ``(2) to overcome this problem the Federal Government, in 
     cooperation with the States, should help areas and regions of 
     substantial and persistent unemployment and underemployment 
     to take effective steps in planning and financing their 
     public works and economic development;
       ``(3) Federal financial assistance, including grants for 
     public works and development facilities to communities, 
     industries, enterprises, and individuals in areas needing 
     development should enable such areas to help themselves 
     achieve lasting improvement and enhance the domestic 
     prosperity by the establishment of stable and diversified 
     local economies and improved local conditions, if such 
     assistance is preceded by and consistent with sound, long-
     range economic planning; and
       ``(4) under the provisions of this Act, new employment 
     opportunities should be created by developing and expanding 
     new and existing public works and other facilities and 
     resources rather than by merely transferring jobs from one 
     area of the United States to another.
       ``(b) Declaration.--Congress declares that, in furtherance 
     of maintaining the national economy at a high level--
       ``(1) the assistance authorized by this Act should be made 
     available to both rural and urban areas;
       ``(2) such assistance should be made available for planning 
     for economic development prior to the actual occurrences of 
     economic distress in order to avoid such condition; and
       ``(3) such assistance should be used for long-term economic 
     rehabilitation in areas where long-term economic 
     deterioration has occurred or is taking place.
     ``TITLE II--GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES

     ``SEC. 201. DIRECT AND SUPPLEMENTARY GRANTS.

       ``(a) In General.--Upon the application of any eligible 
     recipient, the Administrator may--
       ``(1) make direct grants for the acquisition or development 
     of land and improvements for public works, public service, or 
     development facility usage, and the acquisition, design and 
     engineering, construction, rehabilitation, alteration, 
     expansion, or improvement of such facilities, including 
     related machinery and equipment, within an area described in 
     section 502(a), if the Administrator finds that--
       ``(A) the project for which financial assistance is sought 
     will directly or indirectly--
       ``(i) tend to improve the opportunities, in the area where 
     such project is or will be located, for the successful 
     establishment or expansion of industrial or commercial plants 
     or facilities;
       ``(ii) otherwise assist in the creation of additional long-
     term employment opportunities for such area; or
       ``(iii) primarily benefit the long-term unemployed and 
     members of low-income families;
       ``(B) the project for which a grant is requested will 
     fulfill a pressing need of the area, or part thereof, in 
     which it is, or will be, located; and
       ``(C) the area for which a project is to be undertaken has 
     an approved investment strategy as provided by section 503 
     and such project is consistent with such strategy;
       ``(2) make supplementary grants in order to enable the 
     States and other entities within areas described in section 
     502(a) to take maximum advantage of designated Federal grant-
     in-aid programs (as defined in subsection (c)(4)), direct 
     grants-in-aid authorized under this section, and Federal 
     grant-in-aid programs authorized by the Watershed Protection 
     and Flood Prevention Act (68 Stat. 666), and the 11 
     watersheds authorized by the Flood Control Act of December 
     22, 1944 (58 Stat. 887), for which they are eligible but for 
     which, because of their economic situation, they cannot 
     supply the required matching share.
       ``(b) Cost Sharing.--Subject to subsection (c), the amount 
     of any direct grant under this subsection for any project 
     shall not exceed 50 percent of the cost of such project.
       ``(c) Requirements Applicable to Supplementary Grants.--
       ``(1) Amount of supplementary grants.--
       ``(A) In general.--Except as provided by subparagraph (B), 
     the amount of any supplementary grant under this section for 
     any project shall not exceed the applicable percentage 
     established by regulations promulgated by the Administrator, 
     but in no event shall the non-Federal share of the aggregate 
     cost of any such project (including assumptions of debt) be 
     less than 20 percent of such cost.
       ``(B) Exception.--Notwithstanding subparagraph (A), in the 
     case of an Indian tribe, a State (or a political subdivision 
     of the State), or a community development corporation which 
     the Administrator determines has exhausted its effective 
     taxing and borrowing capacity, the Administrator shall reduce 
     the non-Federal share below the percentage specified in 
     subparagraph (A) or shall waive the non-Federal share in the 
     case of such a grant for a project in an area described in 
     section 502(a)(4).
       ``(2) Form of supplementary grants.--Supplementary grants 
     shall be made by the Administrator, in accordance with such 
     regulations as the Administrator may prescribe, by increasing 
     the amounts of direct grants authorized under this section or 
     by the payment of funds appropriated under this Act to the 
     heads of the departments, agencies, and instrumentalities of 
     the Federal Government responsible for the administration of 
     the applicable Federal programs.
       ``(3) Federal share limitations specified in other laws.--
     Notwithstanding any requirement as to the amount or sources 
     of non-Federal funds that may otherwise be applicable to the 
     Federal program involved, funds provided under this 
     subsection shall be used for the sole purpose of increasing 
     the Federal contribution to specific projects in areas 
     described in section 502(a) under such programs above the 
     fixed maximum portion of the cost of such project otherwise 
     authorized by the applicable law.
       ``(4) Designated federal grant-in-aid programs defined.--In 
     this subsection, the term `designated Federal grant-in-aid 
     programs' means such existing or future Federal grant-in-aid 
     programs assisting in the construction or equipping of 
     facilities as the Administrator may, in furtherance of the 
     purposes of this Act, designate as eligible for allocation of 
     funds under this section.
       ``(5) Consideration of relative need in determining 
     amount.--In determining the amount of any supplementary grant 
     available to any project under this section, the 
     Administrator shall take into consideration the relative 
     needs of the area and the nature of the projects to be 
     assisted.

[[Page H 11943]]

       ``(d) Regulations.--The Administrator shall prescribe 
     rules, regulations, and procedures to carry out this section 
     which will assure that adequate consideration is given to the 
     relative needs of eligible areas. In prescribing such rules, 
     regulations, and procedures the Administrator shall consider 
     among other relevant factors--
       ``(1) the severity of the rates of unemployment in the 
     eligible areas and the duration of such unemployment; and
       ``(2) the income levels of families and the extent of 
     underemployment in eligible areas.
       ``(e) Review and Comment Upon Projects by Local 
     Governmental Authorities.--The Administrator shall prescribe 
     regulations which will assure that appropriate local 
     governmental authorities have been given a reasonable 
     opportunity to review and comment upon proposed projects 
     under this section.

     ``SEC. 202. CONSTRUCTION COST INCREASES.

       ``In any case where a grant (including a supplemental 
     grant) has been made by the Administrator under this title 
     for a project and after such grant has been made but before 
     completion of the project, the cost of such project based 
     upon the designs and specifications which were the basis of 
     the grant has been increased because of increases in costs, 
     the amount of such grant may be increased by an amount equal 
     to the percentage increase, as determined by the 
     Administrator, in such costs, but in no event shall the 
     percentage of the Federal share of such project exceed that 
     originally provided for in such grant.

     ``SEC. 203. USE OF FUNDS IN PROJECTS CONSTRUCTED UNDER 
                   PROJECTED COST.

       ``In any case where a grant (including a supplemental 
     grant) has been made by the Administrator under this title 
     for a project, and after such grant has been made but before 
     completion of the project, the cost of such project based 
     upon the designs and specifications which were the basis of 
     the grant has decreased because of decreases in costs, such 
     underrun funds may be used to improve the project either 
     directly or indirectly as determined by the Administrator.

     ``SEC. 204. CHANGED PROJECT CIRCUMSTANCES.

       ``In any case where a grant (including a supplemental 
     grant) has been made by the Administrator under this title 
     for a project, and after such grant has been made but before 
     completion of the project, the purpose or scope of such 
     project based upon the designs and specifications which were 
     the basis of the grant has changed, the Administrator may 
     approve the use of grant funds on such changed project if the 
     Administrator determines that such changed project meets the 
     requirements of this title and that such changes are 
     necessary to enhance economic development in the area.
  ``TITLE III--SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT ASSISTANCE

     ``SEC. 301. STATEMENT OF PURPOSE.

       ``The purpose of this title to provide special economic 
     development and adjustment assistance programs to help State 
     and local areas meet special needs arising from actual or 
     threatened severe unemployment arising from economic 
     dislocation (including unemployment arising from actions of 
     the Federal Government, from defense base closures and 
     realignments, and from compliance with environmental 
     requirements which remove economic activities from a 
     locality) and economic adjustment problems resulting from 
     severe changes in economic conditions (including long-term 
     economic deterioration), and to encourage cooperative 
     intergovernmental action to prevent or solve economic 
     adjustment problems. Nothing in this title is intended to 
     replace the efforts of the economic adjustment program of the 
     Department of Defense.

     ``SEC. 302. SPECIAL ECONOMIC DEVELOPMENT AND ADJUSTMENT 
                   ASSISTANCE.

       ``(a) In General.--The Administrator is authorized to make 
     grants directly to any eligible recipient in an area which 
     the Administrator determines, in accordance with criteria to 
     be established by the Administrator by regulation--
       ``(1) has experienced, or may reasonably be foreseen to be 
     about to experience, a special need to meet an expected rise 
     in unemployment, or other economic adjustment problems 
     (including those caused by any action or decision of the 
     Federal Government); or
       ``(2) has demonstrated long-term economic deterioration.
       ``(b) Purposes.--Amounts from grants under subsection (a) 
     shall be used by an eligible recipient to carry out or 
     develop an investment strategy which--
       ``(1) meets the requirements of section 503; and
       ``(2) is approved by the Administrator.
       ``(c) Types of Assistance.--In carrying out an investment 
     strategy using amounts from grants under subsection (a), an 
     eligible recipient may provide assistance for any of the 
     following:
       ``(1) Public facilities.
       ``(2) Public services.
       ``(3) Business development.
       ``(4) Planning.
       ``(5) Research and technical assistance.
       ``(6) Administrative expenses.
       ``(7) Training.
       ``(8) Relocation of individuals and businesses.
       ``(9) Other assistance which demonstrably furthers the 
     economic adjustment objectives of this title.
       ``(d) Direct Expenditure or Redistribution by Recipient.--
     Amounts from grants under subsection (a) may be used in 
     direct expenditures by the eligible recipient or through 
     redistribution by the eligible recipient to public and 
     private entities in grants, loans, loan guarantees, payments 
     to reduce interest on loan guarantees, or other appropriate 
     assistance, but no grant shall be made by an eligible 
     recipient to a private profit-making entity.
       ``(e) Coordination.--The Administrator to the extent 
     practicable shall coordinate the activities relating to the 
     requirements for investment strategies and making grants and 
     loans under this title with other Federal programs, States, 
     economic development districts, and other appropriate 
     planning and development organizations.
       ``(f) Base Closings and Realignments.--
       ``(1) Location of projects.--In any case in which the 
     Administrator determines a need for assistance under 
     subsection (a) due to the closure or realignment of a 
     military installation, the Administrator may make such 
     assistance available for projects to be carried out on the 
     military installation and for projects to be carried out in 
     communities adversely affected by the closure or realignment.
       ``(2) Interest in property.--Notwithstanding any other 
     provision of law, the Administrator may provide to an 
     eligible recipient any assistance available under this Act 
     for a project to be carried out on a military installation 
     that is closed or scheduled for closure or realignment 
     without requiring that the eligible recipient have title to 
     the property or a leasehold interest in the property for any 
     specified term.

     ``SEC. 303. ANNUAL REPORTS BY RECIPIENT.

       ``Each eligible recipient which receives assistance under 
     this title from the Administrator shall annually during the 
     period such assistance continue to make a full and complete 
     report to the Administrator, in such manner as the 
     Administrator shall prescribe, and such report shall contain 
     an evaluation of the effectiveness of the economic assistance 
     provided under this title in meeting the need it was designed 
     to alleviate and the purposes of this title.

     ``SEC. 304. SALE OF FINANCIAL INSTRUMENTS IN REVOLVING LOAN 
                   FUNDS.

       ``Any loan, loan guarantee, equity, or other financial 
     instrument in the portfolio of a revolving loan fund, 
     including any financial instrument made available using 
     amounts from a grant made before the effective date specified 
     in section 802, may be sold, encumbered, or pledged at the 
     discretion of the grantee of the Fund, to a third party 
     provided that the net proceeds of the transaction--
       ``(1) shall be deposited into the Fund and may only be used 
     for activities which are consistent with the purposes of this 
     title; and
       ``(2) shall be subject to the financial management, 
     accounting, reporting, and auditing standards which were 
     originally applicable to the grant.

     ``SEC. 305. TREATMENT OF REVOLVING LOAN FUNDS.

       ``(a) In General.--Amounts from grants made under this 
     title which are used by an eligible recipient to establish a 
     revolving loan fund shall not be treated, except as provided 
     by subsection (b), as amounts derived from Federal funds for 
     the purposes of any Federal law after such amounts are loaned 
     from the fund to a borrower and repaid to the fund.
       ``(b) Exceptions.--Amounts described in subsection (a) 
     which are loaned from a revolving loan fund to a borrower and 
     repaid to the fund--
       ``(1) may only be used for activities which are consistent 
     with the purposes of this title; and
       ``(2) shall be subject to the financial management, 
     accounting, reporting, and auditing standards which were 
     originally applicable to the grant.
       ``(c) Regulations.--Not later than 30 days after the 
     effective date specified in section 802, the Administrator 
     shall issue regulations to carry out subsection (a).
       ``(d) Public Review and Comment.--Before issuing any final 
     guidelines or administrative manuals governing the operation 
     of revolving loan funds established using amounts from grants 
     under this title, the Administrator shall provide reasonable 
     opportunity for public review of and comment on such 
     guidelines and administrative manuals.
       ``(e) Applicability to Past Grants.--The requirements of 
     this section applicable to amounts from grants made under 
     this title shall also apply to amounts from grants made, 
     before the effective date specified in section 802, under 
     title I of this Act, as in effect on the day before such 
     effective date.
      ``TITLE IV--TECHNICAL ASSISTANCE, RESEARCH, AND INFORMATION

     ``SEC. 401. TECHNICAL ASSISTANCE.

       ``(a) In General.--In carrying out its duties under this 
     Act, the Administrator may provide technical assistance which 
     would be useful in alleviating or preventing conditions of 
     excessive unemployment or underemployment to areas which the 
     Administrator finds have substantial need for such 
     assistance. Such assistance shall include project planning 
     and feasibility studies, management and operational 
     assistance, establishment of business outreach centers, and 
     studies evaluating the needs of, and development 
     potentialities for, economic growth of such areas.
       ``(b) Procedures and Terms.--

[[Page H 11944]]

       ``(1) Manner of providing assistance.--Assistance may be 
     provided by the Administrator through--
       ``(A) members of the Administrator's staff;
       ``(B) the payment of funds authorized for this section to 
     departments or agencies of the Federal Government;
       ``(C) the employment of private individuals, partnerships, 
     firms, corporations, or suitable institutions under contracts 
     entered into for such purposes; or
       ``(D) grants-in-aid to appropriate public or private 
     nonprofit State, area, district, or local organizations.
       ``(2) Repayment terms.--The Administrator, in the 
     Administrator's discretion, may require the repayment of 
     assistance provided under this subsection and prescribe the 
     terms and conditions of such repayment.
       ``(c) Grants Covering Administrative Expenses.--
       ``(1) In general.--The Administrator may make grants to 
     defray not to exceed 50 percent of the administrative 
     expenses of organizations which the Administrator determines 
     to be qualified to receive grants-in-aid under subsections 
     (a) and (b); except that in the case of a grant under this 
     subsection to an Indian tribe, the Administrator is 
     authorized to defray up to 100 percent of such expenses.
       ``(2) Determination of non-federal share.--In determining 
     the amount of the non-Federal share of such costs or 
     expenses, the Administrator shall give due consideration to 
     all contributions both in cash and in kind, fairly evaluated, 
     including contributions of space, equipment, and services.
       ``(3) Use of grants with planning grants.--Where 
     practicable, grants-in-aid authorized under this subsection 
     shall be used in conjunction with other available planning 
     grants to assure adequate and effective planning and 
     economical use of funds.
       ``(d) Availability of Technical Information; Federal 
     Procurement.--The Administrator shall aid areas described in 
     section 502(a) and other areas by furnishing to interested 
     individuals, communities, industries, and enterprises within 
     such areas any assistance, technical information, market 
     research, or other forms of assistance, information, or 
     advice which would be useful in alleviating or preventing 
     conditions of excessive unemployment or underemployment 
     within such areas. The Administrator may furnish the 
     procurement divisions of the various departments, agencies, 
     and other instrumentalities of the Federal Government with a 
     list containing the names and addresses of business firms 
     which are located in areas described in section 502(a) and 
     which are desirous of obtaining Government contracts for the 
     furnishing of supplies or services, and designating the 
     supplies and services such firms are engaged in providing.

     ``SEC. 402. ECONOMIC DEVELOPMENT PLANNING.

       ``(a) Direct Grants.--
       ``(1) In general.--The Administrator may make, upon 
     application of any State, or city, or other political 
     subdivision of a State, or sub-State planning and development 
     organization (including an area described in section 502(a) 
     or an economic development district), direct grants to such 
     State, city, or other political subdivision, or organization 
     to pay up to 50 percent of the cost for economic development 
     planning.
       ``(2) Planning projects specifically included.--The 
     planning for cities, other political subdivisions, and sub-
     State planning and development organizations (including areas 
     described in section 502(a) and economic development 
     districts) assisted under this section shall include 
     systematic efforts to reduce unemployment and increase 
     incomes.
       ``(3) Planning process.--The planning shall be a continuous 
     process involving public officials and private citizens in 
     analyzing local economies, defining development goals, 
     determining project opportunities, and formulating and 
     implementing a development program.
       ``(4) Coordination of assistance under section 401(c).--The 
     assistance available under this section may be provided in 
     addition to assistance available under section 401(c) but 
     shall not supplant such assistance.
       ``(b) Compliance With Review Procedure.--The planning 
     assistance authorized under this title shall be used in 
     conjunction with any other available Federal planning 
     assistance to assure adequate and effective planning and 
     economical use of funds.
            ``TITLE V--ELIGIBILITY AND INVESTMENT STRATEGIES

                         ``PART A--ELIGIBILITY

     ``SEC. 501. ELIGIBLE RECIPIENT DEFINED.

       ``In this Act, the term `eligible recipient' means an area 
     described in section 502(a), an economic development district 
     designated under section 510, an Indian tribe, a State, a 
     city or other political subdivision of a State, or a 
     consortium of such political subdivisions, or a public or 
     private nonprofit organization or association acting in 
     cooperation with officials of such political subdivisions.

     ``SEC. 502. AREA ELIGIBILITY.

       ``(a) Certification.--In order to be eligible for 
     assistance under title II, an applicant seeking assistance to 
     undertake a project in an area shall certify, as part of an 
     application for such assistance, that the area on the date of 
     submission of such application meets 1 or more of the 
     following criteria:
       ``(1) The area has a per capita income of 80 percent or 
     less of the national average.
       ``(2) The area has an unemployment rate 1 percent above the 
     national average percentage for the most recent 24-month 
     period for which statistics are available.
       ``(3) The area has experienced or is about to experience a 
     sudden economic dislocation resulting in job loss that is 
     significant both in terms of the number of jobs eliminated 
     and the effect upon the employment rate of the area.
       ``(4) The area is a community or neighborhood (defined 
     without regard to political or other subdivisions or 
     boundaries) which the Administrator determines has one or 
     more of the following conditions:
       ``(A) A large concentration of low-income persons.
       ``(B) Rural areas having substantial out-migration.
       ``(C) Substantial unemployment.
       ``(b) Documentation.--A certification made under subsection 
     (a) shall be supported by Federal data, when available, and 
     in other cases by data available through the State 
     government. Such documentation shall be accepted by the 
     Administrator unless it is determined to be inaccurate. The 
     most recent statistics available shall be used.
       ``(c) Prior Designations.--Any designation of a 
     redevelopment area made before the effective date specified 
     in section 802 shall not be effective after such effective 
     date.

     ``SEC. 503. INVESTMENT STRATEGY.

       ``The Administrator may provide assistance under titles II 
     and III to an applicant for a project only if the applicant 
     submits to the Administrator, as part of an application for 
     such assistance, and the Administrator approves an investment 
     strategy which--
       ``(1) identifies the economic development problems to be 
     addressed using such assistance;
       ``(2) identifies past, present, and projected future 
     economic development investments in the area receiving such 
     assistance and public and private participants and sources of 
     funding for such investments;
       ``(3) sets forth a strategy for addressing the economic 
     problems identified pursuant to paragraph (1) and describes 
     how the strategy will solve such problems;
       ``(4) provides a description of the project necessary to 
     implement the strategy, estimates of costs, and timetables; 
     and
       ``(5) provides a summary of public and private resources 
     expected to be available for the project.

     ``SEC. 504. APPROVAL OF PROJECTS.

       ``Only applications for grants or other assistance under 
     this Act for specific projects shall be approved which are 
     certified by the State representing such applicant and 
     determined by the Administrator--
       ``(1) to be included in a State investment strategy;
       ``(2) to have adequate assurance that the project will be 
     properly administered, operated, and maintained; and
       ``(3) to otherwise meet the requirements for assistance 
     under this Act.

                ``PART B--ECONOMIC DEVELOPMENT DISTRICTS

     ``SEC. 510. DESIGNATION OF ECONOMIC DEVELOPMENT DISTRICTS AND 
                   ECONOMIC DEVELOPMENT CENTERS.

       ``(a) In General.--In order that economic development 
     projects of broader geographic significance may be planned 
     and carried out, the Administrator may--
       ``(1) designate appropriate `economic development 
     districts' within the United States with the concurrence of 
     the States in which such districts will be wholly or 
     partially located, if--
       ``(A) the proposed district is of sufficient size or 
     population, and contains sufficient resources, to foster 
     economic development on a scale involving more than a single 
     area described in section 502(a);
       ``(B) the proposed district contains at least 1 area 
     described in section 502(a);
       ``(C) the proposed district contains 1 or more areas 
     described in section 502(a) or economic development centers 
     identified in an approved district investment strategy as 
     having sufficient size and potential to foster the economic 
     growth activities necessary to alleviate the distress of the 
     areas described in section 502(a) within the district; and
       ``(D) the proposed district has a district investment 
     strategy which includes adequate land use and transportation 
     planning and contains a specific program for district 
     cooperation, self-help, and public investment and is approved 
     by the State or States affected and by the Administrator;
       ``(2) designate as `economic development centers', in 
     accordance with such regulations as the Administrator shall 
     prescribe, such areas as the Administrator may deem 
     appropriate, if--
       ``(A) the proposed center has been identified and included 
     in an approved district investment strategy and recommended 
     by the State or States affected for such special designation;
       ``(B) the proposed center is geographically and 
     economically so related to the district that its economic 
     growth may reasonably be expected to contribute significantly 
     to the alleviation of distress in the areas described in 
     section 502(a) of the district; and
       ``(C) the proposed center does not have a population in 
     excess of 250,000 according to the most recent Federal 
     census.
       ``(3) provide financial assistance in accordance with the 
     criteria of this Act, except as may be herein otherwise 
     provided, for projects in economic development centers 
     designated under subsection (a)(2), if--
       ``(A) the project will further the objectives of the 
     investment strategy of the district in which it is to be 
     located;
       ``(B) the project will enhance the economic growth 
     potential of the district or result in 

[[Page H 11945]]
     additional long-term employment opportunities commensurate with the 
     amount of Federal financial assistance requested; and
       ``(C) the amount of Federal financial assistance requested 
     is reasonably related to the size, population, and economic 
     needs of the district;
       ``(4) subject to the 50 percent non-Federal share required 
     for any project by section 201(c), increase the amount of 
     grant assistance authorized by section 201 for projects 
     within areas described in section 502(a), by an amount not to 
     exceed 10 percent of the aggregate cost of any such project, 
     in accordance with such regulations as the Administrator 
     shall prescribe if--
       ``(A) the area described in section 502(a) is situated 
     within a designated economic development district and is 
     actively participating in the economic development activities 
     of the district; and
       ``(B) the project is consistent with an approved investment 
     strategy.
       ``(b) Authorities.--In designating economic development 
     districts and approving district investment strategies under 
     subsection (a), the Administrator may, under regulations 
     prescribed by the Administrator--
       ``(1) invite the several States to draw up proposed 
     district boundaries and to identify potential economic 
     development centers;
       ``(2) cooperate with the several States--
       ``(A) in sponsoring and assisting district economic 
     planning and development groups; and
       ``(B) in assisting such district groups to formulate 
     district investment strategies; and
       ``(3) encourage participation by appropriate local 
     governmental authorities in such economic development 
     districts.
       ``(c) Termination or Modification of Designations.--The 
     Administrator shall by regulation prescribe standards for the 
     termination or modification of economic development districts 
     and economic development centers designated under the 
     authority of this section.
       ``(d) Definitions.--In this Act, the following definitions 
     apply:
       ``(1) Economic development district.--The term `economic 
     development district' refers to any area within the United 
     States composed of cooperating areas described in section 
     502(a) and, where appropriate, designated economic 
     development centers and neighboring counties or communities, 
     which has been designated by the Administrator as an economic 
     development district. Such term includes any economic 
     development district designated under section 403 of this 
     Act, as in effect on the day before the effective date 
     specified in section 802.
       ``(2) Economic development center.--The term `economic 
     development center' refers to any area within the United 
     States which has been identified as an economic development 
     center in an approved investment strategy and which has been 
     designated by the Administrator as eligible for financial 
     assistance under this Act in accordance with the provisions 
     of this section.
       ``(3) Local government.--The term `local government' means 
     any city, county, town, parish, village, or other general-
     purpose political subdivision of a State.
       ``(e) Parts of Economic Development Districts Not Within 
     Areas Described in Section 502(a).--The Administrator is 
     authorized to provide the financial assistance which is 
     available to an area described in section 502(a) under this 
     Act to those parts of an economic development district which 
     are not within an area described in section 502(a), when such 
     assistance will be of a substantial direct benefit to an area 
     described in section 502(a) within such district. Such 
     financial assistance shall be provided in the same manner and 
     to the same extent as is provided in this Act for an area 
     described in section 502(a); except that nothing in this 
     subsection shall be construed to permit such parts to receive 
     the increase in the amount of grant assistance authorized in 
     subsection (a)(4).
                       ``TITLE VI--ADMINISTRATION

     ``SEC. 601. APPOINTMENT OF ASSOCIATE ADMINISTRATOR; FULL TIME 
                   EQUIVALENT EMPLOYEES.

       ``(a) Appointment.--The Administrator shall carry out the 
     duties vested in the Administrator by this Act acting through 
     an Associate Administrator of the Small Business 
     Administration, who shall be appointed by the President by 
     and with the advice and consent of the Senate.
       ``(b) Pay.--The Associate Administrator shall be 
     compensated by the Federal Government at the rate prescribed 
     for level V of the Executive Schedule under section 5316 of 
     title 5, United States Code.
       ``(c) Full Time Equivalent Employees.--The Administrator 
     shall assign not to exceed 25 full time equivalent employees 
     of the Small Business Administration (excluding the Associate 
     Administrator) to assist the Administrator in the carrying 
     out the duties vested in the Administrator by this Act.

     ``SEC. 602. REGIONAL COOPERATIVE AGREEMENTS.

       ``(a) In General.--The Administrator shall make grants and 
     carry out such other functions under this Act as the 
     Administrator considers appropriate by entering into 
     cooperative agreements with 1 or more States on a regional 
     basis. Each State entering into such an agreement shall be 
     represented by the chief executive officer of the State.
       ``(b) Terms and Conditions.--A cooperative agreement 
     entered into under subsection (a) shall include such terms 
     and conditions as the Administrator determines are necessary 
     to carry out the provisions of this Act. Such terms and 
     conditions at a minimum shall provide that no decision 
     concerning regional policies or approval of project or grant 
     applications may be made without the consent of the 
     Administrator and a majority of the States participating in 
     the cooperative agreement.
       ``(c) Participation Not Required.--No State shall be 
     required to enter into a cooperative agreement under this 
     section or to participate in any program established by this 
     Act.

     ``SEC. 603. ADMINISTRATIVE EXPENSES.

       ``(a) Payment by States.--Fifty percent of the 
     administrative expenses incurred by States in participating 
     in a cooperative agreement entered into under section 602 
     shall be paid by such States and the remaining 50 percent of 
     such expenses shall be paid by the Federal Government.
       ``(b) Determination of State Share.--The share of the 
     administrative expenses to be paid by each State 
     participating in a cooperative agreement shall be determined 
     by a majority vote of such States. The Administrator may not 
     participate or vote in such determination.
       ``(c) Delinquent Payments.--No assistance authorized by 
     this Act shall be furnished to any State or to any political 
     subdivision or resident of a State, nor shall the State 
     participate or vote in any decision described in section 
     602(b), while such State is delinquent in the payment of such 
     State's share of the administrative expenses described in 
     subsection (a).

     ``SEC. 604. FEDERAL SHARE.

       ``Except as otherwise expressly provided by this Act, the 
     Federal share of the cost of any project funded with amounts 
     made available under this Act shall not exceed 50 percent of 
     such cost.

     ``SEC. 605. COOPERATION OF FEDERAL AGENCIES.

       ``Each Federal department and agency, in accordance with 
     applicable laws and within the limits of available funds, 
     shall cooperate with the Administrator in order to assist the 
     Administrator in carrying out the functions of the 
     Administrator.

     ``SEC. 606. CONSULTATION WITH OTHER PERSONS AND AGENCIES.

       ``(a) Consultation on Problems Relating to Employment.--The 
     Administrator is authorized from time to time to call 
     together and confer with any persons, including 
     representatives of labor, management, agriculture, and 
     government, who can assist in meeting the problems of area 
     and regional unemployment or underemployment.
       ``(b) Consultation on Administration of Act.--The 
     Administrator may make provisions for such consultation with 
     interested departments and agencies as the Administrator may 
     deem appropriate in the performance of the functions vested 
     in the Administrator by this Act.

     ``SEC. 607. ADMINISTRATION, OPERATION, AND MAINTENANCE.

       ``No Federal assistance shall be approved under this Act 
     unless the Administrator is satisfied that the project for 
     which Federal assistance is granted will be properly and 
     efficiently administered, operated, and maintained.
                       ``TITLE VII--MISCELLANEOUS

     ``SEC. 701. POWERS OF ADMINISTRATOR.

       ``(a) In General.--In performing the Administrator's duties 
     under this Act, the Administrator is authorized to--
       ``(1) adopt, alter, and use a seal, which shall be 
     judicially noticed;
       ``(2) subject to the civil-service and classification laws, 
     select, employ, appoint, and fix the compensation of such 
     personnel as may be necessary to carry out the provisions of 
     this Act;
       ``(3) hold such hearings, sit and act at such times and 
     places, and take such testimony, as the Administrator may 
     deem advisable;
       ``(4) request directly from any executive department, 
     bureau, agency, board, commission, office, independent 
     establishment, or instrumentality information, suggestions, 
     estimates, and statistics needed to carry out the purposes of 
     this Act; and each department, bureau, agency, board, 
     commission, office, establishment, or instrumentality is 
     authorized to furnish such information, suggestions, 
     estimates, and statistics directly to the Administrator;
       ``(5) under regulations prescribed by the Administrator, 
     assign or sell at public or private sale, or otherwise 
     dispose of for cash or credit, in the Administrator's 
     discretion and upon such terms and conditions and for such 
     consideration as the Administrator determines to be 
     reasonable, any evidence of debt, contract, claim, personal 
     property, or security assigned to or held by the 
     Administrator in connection with assistance extended under 
     this Act, and collect or compromise all obligations assigned 
     to or held by the Administrator in connection with such 
     assistance until such time as such obligations may be 
     referred to the Attorney General for suit or collection;
       ``(6) deal with, complete, renovate, improve, modernize, 
     insure, rent, or sell for cash or credit, upon such terms and 
     conditions and for such consideration as the Administrator 
     determines to be reasonable, any real or personal property 
     conveyed to, or otherwise acquired by the Administrator in 
     connection with assistance extended under this Act;
       ``(7) pursue to final collection, by way of compromise or 
     other administrative action, prior to reference to the 
     Attorney General, 

[[Page H 11946]]
     all claims against third parties assigned to the Administrator in 
     connection with assistance extended this Act;
       ``(8) acquire, in any lawful manner and in accordance with 
     the requirements of the Federal Property and Administrative 
     Services Act of 1949, any property (real, personal, or mixed, 
     tangible or intangible), whenever necessary or appropriate to 
     the conduct of the activities authorized under this Act;
       ``(9) in addition to any powers, functions, privileges, and 
     immunities otherwise vested in the Administrator, take any 
     action, including the procurement of the services of 
     attorneys by contract, determined by the Administrator to be 
     necessary or desirable in making, purchasing, servicing, 
     compromising, modifying, liquidating, or otherwise 
     administratively dealing with assets held in connection with 
     financial assistance extended under this Act;
       ``(10) employ experts and consultants or organizations as 
     authorized by section 3109 of title 5, United States Code, 
     compensate individuals so employed at rates not in excess of 
     $100 per diem, including travel time, and allow them, while 
     away from their homes or regular places of business, travel 
     expenses (including per diem in lieu of subsistence) as 
     authorized by section 5703 of title 5, United States Code, 
     for persons in the Government service employed 
     intermittently, while so employed, except that contracts for 
     such employment may be renewed annually;
       ``(11) sue and be sued in any court of record of a State 
     having general jurisdiction or in any United States district 
     court, and jurisdiction is conferred upon such district court 
     to determine such controversies without regard to the amount 
     in controversy; but no attachment, injunction, garnishment, 
     or other similar process, mesne or final, shall be issued 
     against the Administrator or the Administrator's property;
       ``(12) make discretionary grants, pursuant to authorities 
     otherwise available to the Administrator under this Act and 
     without regard to the requirements of section 504, to 
     implement significant regional initiatives, to take advantage 
     of special development opportunities, or to respond to 
     emergency economic distress in a region from the funds 
     withheld from distribution by the Administrator; except that 
     the aggregate amount of such discretionary grants in any 
     fiscal year may not exceed 10 percent of the amounts 
     appropriated under title VIII for such fiscal year;
       ``(13) allow a State to use not to exceed 5 percent of the 
     total of amounts received by the State in a fiscal year in 
     grants under this Act for reasonable expenses incurred by the 
     State in administering such amounts; and
       ``(14) establish such rules, regulations, and procedures as 
     the Administrator considers appropriate in carrying out the 
     provisions of this Act.
       ``(b) Deficiency Judgments.--The authority under subsection 
     (a)(7) to pursue claims shall include the authority to obtain 
     deficiency judgments or otherwise in the case of mortgages 
     assigned to the Administrator.
       ``(c) Inapplicability of Certain Other Requirements.--
     Section 3709 of the Revised Statutes of the United States 
     shall not apply to any contract of hazard insurance or to any 
     purchase or contract for services or supplies on account of 
     property obtained by the Administrator as a result of 
     assistance extended under this Act if the premium for the 
     insurance or the amount of the insurance does not exceed 
     $1,000.
       ``(d) Powers of Conveyance and Execution.--The power to 
     convey and to execute, in the name of the Administrator, 
     deeds of conveyance, deeds of release, assignments and 
     satisfactions of mortgages, and any other written instrument 
     relating to real or personal property or any interest therein 
     acquired by the Administrator pursuant to the provisions of 
     this Act may be exercised by the Administrator, or by any 
     officer or agent appointed by the Administrator for such 
     purpose, without the execution of any express delegation of 
     power or power of attorney.

     ``SEC. 702. ESTABLISHMENT OF CLEARINGHOUSE.

       ``In carrying out the Administrator's duties under this 
     Act, the Administrator shall ensure that the Small Business 
     Administration--
       ``(1) serves as a central information clearinghouse on 
     matters relating to economic development, economic 
     adjustment, disaster recovery, and defense conversion 
     programs and activities of the Federal and State governments, 
     including political subdivisions of the States; and
       ``(2) helps potential and actual applicants for economic 
     development, economic adjustment, disaster recovery, and 
     defense conversion assistance under Federal, State, and local 
     laws in locating and applying for such assistance, including 
     financial and technical assistance.

     ``SEC. 703. PERFORMANCE MEASURES.

       ``The Administrator shall establish performance measures 
     for grants and other assistance provided under this Act. Such 
     performance measures shall be used to evaluate project 
     proposals and conduct evaluations of projects receiving such 
     assistance.

     ``SEC. 704. MAINTENANCE OF STANDARDS.

       ``The Administrator shall continue to implement and enforce 
     the provisions of section 712 of this Act, as in effect on 
     the day before the effective date specified in section 802.

     ``SEC. 705. TRANSFER OF FUNCTIONS.

       ``The functions, powers, duties, and authorities and the 
     assets, funds, contracts, loans, liabilities, commitments, 
     authorizations, allocations, and records which are vested in 
     or authorized to be transferred to the Secretary of the 
     Treasury under section 29(b) of the Area Redevelopment Act, 
     and all functions, powers, duties, and authorities under 
     section 29(c) of such Act are hereby vested in the 
     Administrator.

     ``SEC. 706. DEFINITION OF STATE.

       ``In this Act, the terms `State', `States', and `United 
     States' include the several States, the District of Columbia, 
     Puerto Rico, the Virgin Islands, American Samoa, Guam, the 
     Marshall Islands, Micronesia, and the Northern Mariana 
     Islands.

     ``SEC. 707. ANNUAL REPORT TO CONGRESS.

       ``The Administrator shall transmit to Congress a 
     comprehensive and detailed annual report of the 
     Administrator's operations under this Act for each fiscal 
     year beginning with the fiscal year ending September 30, 
     1996. Such report shall be printed and shall be transmitted 
     to Congress not later than April 1 of the year following the 
     fiscal year with respect to which such report is made.

     ``SEC. 708. USE OF OTHER FACILITIES.

       ``(a) Delegation of Functions to Other Federal Departments 
     and Agencies.--The Administrator may delegate to the heads of 
     other departments and agencies of the Federal Government any 
     of the Administrator's functions, powers, and duties under 
     this Act as the Administrator may deem appropriate, and to 
     authorize the redelegation of such functions, powers, and 
     duties by the heads of such departments and agencies.
       ``(b) Department and Agency Execution of Delegated 
     Authority.--Departments and agencies of the Federal 
     Government shall exercise their powers, duties, and functions 
     in such manner as will assist in carrying out the objectives 
     of this Act.
       ``(c) Transfer Between Departments.--Funds authorized to be 
     appropriated under this Act may be transferred between 
     departments and agencies of the Government, if such funds are 
     used for the purposes for which they are specifically 
     authorized and appropriated.
       ``(d) Funds Transferred From Other Departments and 
     Agencies.--In order to carry out the objectives of this Act, 
     the Administrator may accept transfers of funds from other 
     departments and agencies of the Federal Government if the 
     funds are used for the purposes for which (and in accordance 
     with the terms under which) the funds are specifically 
     authorized and appropriated. Such transferred funds shall 
     remain available until expended, and may be transferred to 
     and merged with the appropriations under the heading 
     `salaries and expenses' by the Administrator to the extent 
     necessary to administer the program.

     ``SEC. 709. EMPLOYMENT OF EXPEDITERS AND ADMINISTRATIVE 
                   EMPLOYEES.

       ``No financial assistance shall be extended by the 
     Administrator under this Act to any business enterprise 
     unless the owners, partners, or officers of such business 
     enterprise--
       ``(1) certify to the Administrator the names of any 
     attorneys, agents, and other persons engaged by or on behalf 
     of such business enterprise for the purpose of expediting 
     applications made to the Administrator for assistance of any 
     sort, under this Act, and the fees paid or to be paid to any 
     such person; and
       ``(2) execute an agreement binding such business 
     enterprise, for a period of 2 years after such assistance is 
     rendered by the Administrator to such business enterprise, to 
     refrain from employing, tendering any office or employment 
     to, or retaining for professional services, any person who, 
     on the date such assistance or any part thereof was rendered, 
     or within the 1-year period ending on such date, shall have 
     served as an officer, attorney, agent, or employee, occupying 
     a position or engaging in activities which the Administrator 
     determines involves discretion with respect to the granting 
     of assistance under this Act.

     ``SEC. 710. MAINTENANCE OF RECORDS OF APPROVED APPLICATIONS 
                   FOR FINANCIAL ASSISTANCE; PUBLIC INSPECTION.

       ``(a) Maintenance of Record Required.--The Administrator 
     shall maintain as a permanent part of the records of the 
     Small Business Administration a list of applications approved 
     for financial assistance under this Act, which shall be kept 
     available for public inspection during the regular business 
     hours of the Small Business Administration.
       ``(b) Posting to List.--The following information shall be 
     posted in such list as soon as each application is approved:
       ``(1) The name of the applicant and, in the case of 
     corporate applications, the names of the officers and 
     directors thereof.
       ``(2) The amount and duration of the financial assistance 
     for which application is made.
       ``(3) The purposes for which the proceeds of the financial 
     assistance are to be used.

     ``SEC. 711. RECORDS AND AUDIT.

       ``(a) Recordkeeping and Disclosure Requirements.--Each 
     recipient of assistance under this Act shall keep such 
     records as the Administrator shall prescribe, including 
     records which fully disclose the amount and the disposition 
     by such recipient of the proceeds of such assistance, the 
     total cost of the project or undertaking in connection with 
     which such assistance is given or used, and the amount and 
     nature of that portion of the cost of the project or 
     undertaking supplied by other sources, and such other records 
     as will facilitate an effective audit.
       ``(b) Access to Books for Examination and Audit.--The 
     Administrator and the 

[[Page H 11947]]
     Comptroller General of the United States, or any of their duly 
     authorized representatives, shall have access for the purpose 
     of audit and examination to any books, documents, papers, and 
     records of the recipient that are pertinent to assistance 
     received under this Act.

     ``SEC. 712. PROHIBITION AGAINST A STATUTORY CONSTRUCTION 
                   WHICH MIGHT CAUSE DIMINUTION IN OTHER FEDERAL 
                   ASSISTANCE.

       ``All financial and technical assistance authorized under 
     this Act shall be in addition to any Federal assistance 
     previously authorized, and no provision of this Act shall be 
     construed as authorizing or permitting any reduction or 
     diminution in the proportional amount of Federal assistance 
     to which any State or other entity eligible under this Act 
     would otherwise be entitled under the provisions of any other 
     Act.

     ``SEC. 713. ACCEPTANCE OF APPLICANTS' CERTIFICATIONS.

       ``The Administrator may accept, when deemed appropriate, 
     the applicants' certifications to meet the requirements of 
     this Act.
                 ``TITLE VIII--FUNDING; EFFECTIVE DATE

     ``SEC. 801. AUTHORIZATION OF APPROPRIATIONS

       ``There is authorized to be appropriated to carry out this 
     Act $340,000,000 per fiscal year for each of fiscal years 
     1996, 1997, 1998, 1999, and 2000. Such sums shall remain 
     available until expended.

     ``SEC. 802. EFFECTIVE DATE.

       ``The effective date specified in this section is the 
     abolishment date specified in section 2101(c) of the 
     Department of Commerce Dismantling Act.''.
       (b) Conforming Amendments to Title 5.--Section 5316 of 
     title 5, United States Code, is amended--
       (1) by striking ``Associate Administrators of the Small 
     Business Administration (4)'' and inserting ``Associate 
     Administrators of the Small Business Administration (5)''; 
     and
       (2) by striking ``Administrator for Economic 
     Development.''.
       (c) GAO Study.--On or before December 30, 1996, the 
     Comptroller General shall submit to Congress a plan or plans 
     for consolidating economic development programs throughout 
     the Federal Government. The plan or plans shall focus on, but 
     not be limited to, consolidating programs included in the 
     Catalogue of Federal Domestic Assistance with similar 
     purposes and target populations. The plan or plans shall 
     detail how consolidation can lead to improved grant or 
     program management, improvements in achieving program goals, 
     and reduced costs.

     SEC. 2202. TECHNOLOGY ADMINISTRATION.

       (a) Technology Administration.--
       (1) General rule.--Except as otherwise provided in this 
     section, the Technology Administration is terminated.
       (2) Office of technology policy.--The Office of Technology 
     Policy is terminated.
       (b) National Institute of Standards and Technology.--
       (1) Redesignation.--The National Institute of Standards and 
     Technology is hereby redesignated as the National Bureau of 
     Standards, and all references to the National Institute of 
     Standards and Technology in Federal law or regulations are 
     deemed to be references to the National Bureau of Standards.
       (2) General rule.--The National Bureau of Standards (in 
     this subsection referred to as the ``Bureau'') is transferred 
     to the National Scientific, Oceanic, and Atmospheric 
     Administration, established under section 2206.
       (3) Functions of director.--Except as otherwise provided in 
     this section or section 2207, upon the transfer under 
     paragraph (2), the Director of the Bureau shall perform all 
     functions relating to the Bureau that, immediately before the 
     effective date specified in section 2208(a), were functions 
     of the Secretary of Commerce or the Under Secretary of 
     Commerce for Technology.
       (c) National Technical Information Service.--
       (1) Privatization.--All functions of the National Technical 
     Information Service are transferred to the Director of Office 
     of Management and Budget for privatization in accordance with 
     section 2108 before the end of the 18-month period beginning 
     on the date of the enactment of this Act.
       (2) Transfer to national scientific, oceanic, and 
     atmospheric administration.--If an appropriate arrangement 
     for the privatization of functions of the National Technical 
     Information Service under paragraph (1) has not been made 
     before the end of the period described in that paragraph, the 
     National Technical Information Service shall be transferred 
     as of the end of such period to the National Scientific, 
     Oceanic, and Atmospheric Administration established by 
     section 2206.
       (3) Government corporation.--If an appropriate arrangement 
     for the privatization of functions of the National Technical 
     Information Service under paragraph (1) has not been made 
     before the end of the period described in that paragraph, the 
     Director of the Office of Management and Budget shall, within 
     6 months after the end of such period, submit to Congress a 
     proposal for legislation to establish the National Technical 
     Information Service as a wholly owned Government corporation. 
     The proposal should provide for the corporation to perform 
     substantially the same functions that, as of the date of 
     enactment of this Act, are performed by the National 
     Technical Information Service.
       (4) Funding.--No funds are authorized to be appropriated 
     for the National Technical Information Service or any 
     successor corporation established pursuant to a proposal 
     under paragraph (3).
       (d) Amendments.--
       (1) National institute of standards and technology act.--
     The National Institute of Standards and Technology Act (15 
     U.S.C. 271 et seq.) is amended--
       (A) in section 2(b), by striking paragraph (1) and 
     redesignating paragraphs (2) through (11) as paragraphs (1) 
     through (10), respectively;
       (B) in section 2(d), by striking ``, including the programs 
     established under sections 25, 26, and 28 of this Act'';
       (C) in section 10, by striking ``Advanced'' in both the 
     section heading and subsection (a), and inserting in lieu 
     thereof ``Standards and''; and
       (D) by striking sections 24, 25, 26, and 28.
       (2) Stevenson-wydler technology innovation act of 1980.--
     The Stevenson-Wydler Technology Innovation Act of 1980 (15 
     U.S.C. 3701 et seq.) is amended--
       (A) in section 3, by striking paragraph (2) and 
     redesignating paragraphs (3) through (5) as paragraphs (2) 
     through (4), respectively;
       (B) in section 4, by striking paragraphs (1), (4), and (13) 
     and redesignating paragraphs (2), (3), (5), (6), (7), (8), 
     (9), (10), (11), and (12) as paragraphs (1) through (10), 
     respectively;
       (C) by striking sections 5, 6, 7, 8, 9, and 10;
       (D) in section 11--
       (i) by striking ``, the Federal Laboratory Consortium for 
     Technology Transfer,'' in subsection (c)(3);
       (ii) by striking ``and the Federal Laboratory Consortium 
     for Technology Transfer'' in subsection (d)(2);
       (iii) by striking ``, and refer such requests'' and all 
     that follows through ``available to the Service'' in 
     subsection (d)(3); and
       (iv) by striking subsection (e); and
       (E) in section 17--
       (i) by striking ``Subject to paragraph (2), separate'' in 
     subsection (c)(1) and inserting in lieu thereof ``Separate'';
       (ii) by striking paragraph (2) of subsection (c) and 
     redesignating paragraph (3) as paragraph (2);
       (iii) by striking ``funds to carry out'' in subsection (f), 
     and inserting in lieu thereof ``funds only to pay the salary 
     of the Director of the Office of Quality Programs, who shall 
     be responsible for carrying out''; and
       (iv) by adding at the end the following new subsection:
       ``(h) Voluntary and Uncompensated Services.--The Director 
     of the Office of Quality Programs may accept voluntary and 
     uncompensated services notwithstanding the provisions of 
     section 1342 of title 31, United States Code.''.
       (3) Miscellaneous amendments.--Section 3 of Public Law 94-
     168 (15 U.S.C. 205b) is amended--
       (A) by striking paragraph (2);
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       (C) in paragraph (3), as so redesignated by subparagraph 
     (B) of this paragraph, by striking ``in nonbusiness 
     activities''.

     SEC. 2203. REORGANIZATION OF THE BUREAU OF THE CENSUS AND THE 
                   BUREAU OF ECONOMIC ANALYSIS.

       (a) Transfer of Functions.--All functions of the Secretary 
     of Commerce relating to the Bureau of the Census and the 
     Bureau of Economic Analysis of the Department of Commerce are 
     transferred to the Secretary of Labor.
       (b) Transfer of Bureaus.--The Bureau of the Census and 
     Bureau of Economic Analysis of the Department of Commerce are 
     transferred to the Department of Labor.
       (c) Consolidation With the Bureau of Labor Statistics.--The 
     Secretary of Labor shall consolidate the Bureaus transferred 
     under subsection (b) with the Bureau of Labor Statistics 
     within the Department of Labor.
       (d) References to Secretary.--Section 1(2) of the title 13, 
     United States Code, is amended by striking out ``Secretary of 
     Commerce'' and inserting in lieu thereof ``Secretary of 
     Labor''.
       (e) References to Department.--Section 2 of title 13, 
     United States Code, is amended by striking out ``Department 
     of Commerce'' and inserting in lieu thereof ``Department of 
     Labor''.
       (f) General References to Secretary and Department.--The 
     provisions of title 13, United States Code, are further 
     amended--
       (1) by striking out ``Secretary of Commerce'' each place 
     such term appears and insert in lieu thereof ``Secretary of 
     Labor''; and
       (2) by striking out ``Department of Commerce'' each place 
     such term appears and inserting in lieu thereof ``Department 
     of Labor''.
       (g) Submission of Plan.--Within 180 days after the date of 
     enactment of this Act, the President shall transmit to the 
     Congress--
       (1) a determination of the feasibility and potential 
     savings resulting from the further consolidation of 
     statistical functions throughout the Government into a single 
     agency; and
       (2) draft legislation under which the provisions of title 
     13, United States Code, relating to confidentiality 
     (including offenses and penalties) shall be applied after the 
     consolidation under subsection (c) has been effected.
       (h) Sense of the Congress.--It is the sense of the Congress 
     that the Bureau of the Census or the agency established as a 
     result of the consolidation under subsection (c) should--

[[Page H 11948]]

       (1) make appropriate use of any authority afforded to it by 
     the Census Address List Improvement Act of 1994 (Public Law 
     103-430; 108 Stat. 4393), and take measures to ensure the 
     timely implementation of such Act; and
       (2) streamline census questionnaires to promote savings in 
     the collection and tabulation of data.

     SEC. 2204. TERMINATED FUNCTIONS OF NTIA.

       (a) Repeals.--The following provisions of law are repealed:
       (1) Subpart A of part IV of title III of the Communications 
     Act of 1934 (47 U.S.C. 390 et seq.), relating to assistance 
     for public telecommunications facilities.
       (2) Subpart B of part IV of title III of the Communications 
     Act of 1934 (47 U.S.C. 394 et seq.), relating to the 
     Endowment for Children's Educational Television.
       (3) Subpart C of part IV of title III of the Communications 
     Act of 1934 (47 U.S.C. 395 et seq.), relating to 
     Telecommunications Demonstration grants.
       (b) Disposal of NTIA Laboratories.--
       (1) Privatization.--All laboratories of the National 
     Telecommunications and Information Administration are 
     transferred to the Director of the Office of Management and 
     Budget for privatization in accordance with section 2108 
     before the end of the 18-month period beginning on the date 
     of the enactment of this Act.
       (2) Transfer to national scientific, oceanic, and 
     atmospheric administration.--If an appropriate arrangement 
     for the privatization of functions of the laboratories of the 
     National Telecommunications and Information Administration 
     under paragraph (1) has not been made before the end of the 
     period described in that paragraph, the laboratories of the 
     National Telecommunications and Information Administration 
     shall be transferred as of the end of such period to the 
     National Scientific, Oceanic, and Atmospheric Administration 
     established by section 2206.
       (3) Transfer of functions.--The functions of the National 
     Telecommunications and Information Administration concerning 
     research and analysis of the electromagnetic spectrum 
     described in section 5112(b) of the Omnibus Trade and 
     Competitiveness Act of 1988 (15 U.S.C. 1532) are transferred 
     to the Director of the National Bureau of Standards.
       (c) Transfer of National Telecommunications and Information 
     Administration Functions.--
       (1) Transfer to ustr.--Except as provided in subsection 
     (b)(2), the functions of the National Telecommunications and 
     Information Administration, and of the Secretary of Commerce 
     and the Assistant Secretary for Communications and 
     Information of the Department of Commerce with respect to the 
     National Telecommunications and Information Administration, 
     are transferred to the United States Trade Representative. 
     The functions transferred by this paragraph shall be placed 
     in an organizational component that is independent from all 
     USTR functions directly related to the negotiation of trade 
     agreements. Such functions shall be supervised by an 
     individual whose principal professional expertise is in the 
     area of telecommunications. The position to which such 
     individual is appointed shall be graded at a level 
     sufficiently high to attract a highly qualified individual, 
     while ensuring autonomy in the conduct of such functions from 
     all activities and influences associated with trade 
     negotiations.
       (2) References.--References in any provision of law 
     (including the National Telecommunications and Information 
     Administration Organization Act) to the Secretary of Commerce 
     or the Assistant Secretary for Communications and Information 
     of the Department of Commerce--
       (A) with respect to a function vested pursuant to this 
     section in the United States Trade Representative shall be 
     deemed to refer to the United States Trade Representative; 
     and
       (B) with respect to a function vested pursuant to this 
     section in the Director of the National Bureau of Standards 
     shall be deemed to refer to the Director of the National 
     Bureau of Standards.
       (3) Termination of ntia.--Effective on the abolishment date 
     specified in section 2101(c), the National Telecommunications 
     and Information Administration is abolished.

     SEC. 2205. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION.

       (a) Termination of Miscellaneous Research Programs and 
     Accounts.--
       (1) In general.--No funds may be appropriated in any fiscal 
     year for the following programs and accounts of the National 
     Scientific, Oceanic, and Atmospheric Administration:
       (A) The National Undersea Research Program.
       (B) The Fleet Modernization Program.
       (C) The Charleston, South Carolina, Special Management 
     Plan.
       (D) Chesapeake Bay Observation Buoys (as of September 30, 
     1996).
       (E) Federal/State Weather Modification Grants.
       (F) The Southeast Storm Research Account.
       (G) The Southeast United States Caribbean Fisheries 
     Oceanographic Coordinated Investigations Program.
       (H) National Institute for Environmental Renewal.
       (I) The Lake Champlain Study.
       (J) The Maine Marine Research Center.
       (K) The South Carolina Cooperative Geodetic Survey Account.
       (L) Pacific Island Technical Assistance.
       (M) Sea Grant Oyster Disease Account.
       (N) Sea Grant Zebra Mussel Account.
       (O) VENTS program.
       (P) National Weather Service non-Federal, non-wildfire 
     Weather Service.
       (Q) National Weather Service Regional Climate Centers.
       (R) National Weather Service Samoa Weather Forecast Office 
     Repair and Upgrade Account.
       (S) Dissemination of Weather Charts (Marine Facsimile 
     Service).
       (T) The Climate and Global Change Account.
       (U) The Global Learning and Observations to Benefit the 
     Environment Program.
       (V) Great Lakes nearshore research.
       (W) Mussel watch.
       (2) Repeals.--The following provisions of law are repealed:
       (A) The Ocean Thermal Conversion Act of 1980 (42 U.S.C. 
     9101 et seq.).
       (B) Title IV of the Marine Protection, Research, and 
     Sanctuaries Act of 1972 (16 U.S.C. 1447 et seq.).
       (C) Title V of the Marine Protection, Research, and 
     Sanctuaries Act of 1972 (33 U.S.C. 2801 et seq.).
       (D) The Great Lakes Shoreline Mapping Act of 1987 (33 
     U.S.C. 883a note).
       (E) The Great Lakes Fish and Wildlife Tissue Bank Act (16 
     U.S.C. 943 et seq.).
       (F) The Nonindigenous Aquatic Nuisance Prevention and 
     Control Act of 1990 (16 U.S.C. 4701 et seq.), except for 
     those provisions affecting the Assistant Secretary of the 
     Army (civil works) and the Secretary of the department in 
     which the Coast Guard is operating.
       (G) Section 3 of the Sea Grant Program Improvement Act of 
     1976 (33 U.S.C. 1124a).
       (H) Section 208(c) of the National Sea Grant College 
     Program Act (33 U.S.C. 1127(c)).
       (I) Section 305 of the Coastal Zone Management Act of 1972 
     (16 U.S.C. 1454) is repealed effective October 1, 1998.
       (J) The NOAA Fleet Modernization Act (33 U.S.C. 891 et 
     seq.).
       (K) Public Law 85-342 (72 Stat. 35; 16 U.S.C. 778 et seq.), 
     relating to fish research and experimentation.
       (L) The first section of the Act of August 8, 1956 (70 
     Stat. 1126; 16 U.S.C. 760d), relating to grants for 
     commercial fishing education.
       (M) Public Law 86-359 (16 U.S.C. 760e et seq.), relating to 
     the study of migratory marine gamefish.
       (N) The Act of August 15, 1914 (Chapter 253; 38 Stat. 692; 
     16 U.S.C. 781 et seq.), prohibiting the taking of sponges in 
     the Gulf of Mexico and the Straits of Florida.
       (b) Aeronautical Mapping and Charting.--
       (1) In general.--The aeronautical mapping and charting 
     functions of the National Oceanic and Atmospheric 
     Administration are transferred to the Defense Mapping Agency.
       (2) Termination of certain functions.--The Defense Mapping 
     Agency shall terminate any functions transferred under 
     paragraph (1) that are performed by the private sector.
       (3) Functions requested by federal aviation 
     administration.--(A) Notwithstanding paragraph (2), the 
     Director of the Defense Mapping Agency shall carry out such 
     aeronautical charting functions as may be requested by the 
     Administrator of the Federal Aviation Administration.
       (B) In carrying out aeronautical mapping functions 
     requested by the Administrator under subparagraph (A), the 
     Director shall--
       (i) publish and distribute to the public and to the 
     Administrator any aeronautical charts requested by the 
     Administrator; and
       (ii) provide to the Administrator such other air traffic 
     control products and services as may be requested by the 
     Administrator,

     in such manner and including such information as the 
     Administrator determines is necessary for, or will promote, 
     the safe and efficient movement of aircraft in air commerce.
       (4) Continuing applicability.--The requirements of section 
     1307 of title 44, United States Code, shall continue to apply 
     with respect to all aeronautical products created or 
     published by the Director of the Defense Mapping Agency in 
     carrying out the functions transferred to the Director under 
     this paragraph; except that the prices for such products 
     shall be established jointly by the Director and the 
     Secretary of Transportation on an annual basis.
       (c) Transfer of Mapping, Charting, and Geodesy Functions to 
     the United States Geological Survey.--
       (1) In general.--Except as provided in subsection (b), 
     there are hereby transferred to the Director of the United 
     States Geological Survey the functions relating to mapping, 
     charting, and geodesy authorized under the Act of August 7, 
     1947 (61 Stat. 787; 33 U.S.C. 883a).
       (2) Termination of certain functions.--The Director of the 
     United States Geological Survey shall terminate any functions 
     transferred under paragraph (1) that are performed by the 
     private sector.
       (d) NESDIS.--There are transferred to the National 
     Scientific, Oceanic, and Atmospheric Administration all 
     functions and assets of the National Oceanic and Atmospheric 
     Administration that on the date immediately before the 
     effective date of this section were authorized to be 
     performed by the National Environmental Satellite, Data, and 
     Information System.
       (e) OAR.--There are transferred to the National Scientific, 
     Oceanic, and Atmospheric 

[[Page H 11949]]
     Administration all functions and assets of the National Oceanic and 
     Atmospheric Administration (including global programs) that 
     on the date immediately before the effective date of this 
     section were authorized to be performed by the Office of 
     Oceanic and Atmospheric Research.
       (f) NWS.--
       (1) In general.--There are transferred to the National 
     Scientific, Oceanic, and Atmospheric Administration all 
     functions and assets of the National Oceanic and Atmospheric 
     Administration that on the date immediately before the 
     effective date of this section were authorized to be 
     performed by the National Weather Service.
       (2) Duties.--To protect life and property and enhance the 
     national economy, the Administrator of Science, Oceans, and 
     the Atmosphere, through the National Weather Service, except 
     as outlined in paragraph (3), shall be responsible for the 
     following:
       (A) Forecasts. The Administrator of Science, Oceans, and 
     the Atmosphere, through the National Weather Service, shall 
     serve as the sole official source of severe weather warnings.
       (B) Issuance of storm warnings.
       (C) The collection, exchange, and distribution of 
     meteorological, hydrological, climatic, and oceanographic 
     data and information.
       (D) The preparation of hydro-meteorological guidance and 
     core forecast information.
       (3) Limitations on competition.--The National Weather 
     Service may not compete, or assist other entities to compete, 
     with the private sector to provide a service when that 
     service is currently provided or can be provided by a 
     commercial enterprise unless--
       (A) the Administrator of Science, Oceans, and the 
     Atmosphere finds that the private sector is unwilling or 
     unable to provide the service; or
       (B) the Administrator of Science, Oceans, and the 
     Atmosphere finds that the service provides vital weather 
     warnings and forecasts for the protection of lives and 
     property of the general public.
       (4) Organic act amendments.--
       (A) Amendments.--The Act of 1890 is amended--
       (i) by striking section 3 (15 U.S.C. 313); and
       (ii) in section 9 (15 U.S.C. 317), by striking ``Department 
     of'' and all that follows thereafter and inserting ``National 
     Scientific, Oceanic, and Atmospheric Administration.''.
       (B) Definition.--For purposes of this paragraph, the term 
     ``Act of 1890'' means the Act entitled ``An Act to increase 
     the efficiency and reduce the expenses of the Signal Corps of 
     the Army, and to transfer the Weather Bureau to the 
     Department of Agriculture'', approved October 1, 1890 (26 
     Stat. 653).
       (5) Repeal.--Sections 706 and 707 of the Weather Service 
     Modernization Act (15 U.S.C. 313 note) are repealed.
       (6) Conforming Amendments.--The Weather Service 
     Modernization Act (15 U.S.C. 313 note) is amended--
       (A) in section 702, by striking paragraph (3) and 
     redesignating paragraphs (4) through (10) as paragraphs (3) 
     through (9), respectively; and
       (B) in section 703--
       (i) by striking ``(a) National Implementation Plan.--'';
       (ii) by striking paragraph (3) and redesignating paragraphs 
     (4), (5), and (6) as paragraphs (3), (4), and (5), 
     respectively; and
       (iii) by striking subsections (b) and (c).
       (g) Termination of the National Oceanic and Atmospheric 
     Administration Corps of Commissioned Officers.--
       (1) Number of officers.--Notwithstanding section 8 of the 
     Act of June 3, 1948 (33 U.S.C. 853g), the total number of 
     commissioned officers on the active list of the National 
     Scientific, Oceanic, and Atmospheric Administration shall not 
     exceed--
       (A) 358 as of September 30, 1996;
       (B) 180 as of September 30, 1997; and
       (C) 0 for any fiscal year beginning after September 30, 
     1998.
       (2) Separation pay.--(A) Commissioned officers may be 
     separated from the active list of the National Scientific, 
     Oceanic, and Atmospheric Administration. Any officer so 
     separated because of paragraph (1) shall, subject to 
     subparagraph (B) and the availability of appropriations, be 
     eligible for separation pay under section 9 of the Act of 
     June 3, 1948 (33 U.S.C. 853h) to the same extent as if such 
     officer had been separated under section 8 of such Act (33 
     U.S.C. 853g).
       (B) Any officer who, under paragraph (4), transfers to 
     another of the uniformed services or becomes employed in a 
     civil service position shall not be eligible for separation 
     pay under this paragraph.
       (C)(i) Any officer who receives separation pay under this 
     paragraph shall be required to repay the amount received if, 
     within 1 year after the date of the separation on which the 
     payment is based, such officer is reemployed in a civil 
     service position in the National Scientific, Oceanic, and 
     Atmospheric Administration, the duties of which position 
     would formerly have been performed by a commissioned officer, 
     as determined by the Administrator of Science, Oceans, and 
     the Atmosphere.
       (ii) A repayment under this subparagraph shall be made in a 
     lump sum or in such installments as the Administrator may 
     specify.
       (D) In the case of any officer who makes a repayment under 
     subparagraph (C)--
       (i) the National Scientific, Oceanic, and Atmospheric 
     Administration shall pay into the Civil Service Retirement 
     and Disability Fund, on such officer's behalf, any deposit 
     required under section 8422(e)(1) of title 5, United States 
     Code, with respect to any prior service performed by that 
     individual as such an officer; and
       (ii) if the amount paid under clause (i) is less than the 
     amount of the repayment under subparagraph (C), the National 
     Scientific, Oceanic, and Atmospheric Administration shall pay 
     into the Government Securities Investment Fund (established 
     under section 8438(b)(1)(A) of title 5, United States Code), 
     on such individual's behalf, an amount equal to the 
     difference.

     The provisions of paragraph (5)(C)(iv) shall apply with 
     respect to any contribution to the Thrift Savings Plan made 
     under clause (ii).
       (3) Priority placement program.--A priority placement 
     program similar to the programs described in section 3329b of 
     title 5, United States Code, as amended by section 2109, 
     shall be established by the National Scientific, Oceanic, and 
     Atmospheric Administration to assist commissioned officers 
     who are separated from the active list of the National 
     Scientific, Oceanic, and Atmospheric Administration because 
     of paragraph (1).
       (4) Transfer.--(A) Subject to the approval of the Secretary 
     of Defense and under terms and conditions specified by the 
     Secretary, commissioned officers subject to paragraph (1) may 
     transfer to the Armed Forces under section 716 of title 10, 
     United States Code.
       (B) Subject to the approval of the Secretary of 
     Transportation and under terms and conditions specified by 
     the Secretary, commissioned officers subject to paragraph (1) 
     may transfer to the United States Coast Guard under section 
     716 of title 10, United States Code.
       (C) Subject to the approval of the Administrator of 
     Science, Oceans, and the Atmosphere and under terms and 
     conditions specified by that Administrator, commissioned 
     officers subject to paragraph (1) may be employed by the 
     National Scientific, Oceanic, and Atmospheric Administration 
     as members of the civil service.
       (5) Retirement provisions.--(A) For commissioned officers 
     who transfer under paragraph (4)(A) to the Armed Forces, the 
     National Scientific, Oceanic, and Atmospheric Administration 
     shall pay into the Department of Defense Military Retirement 
     Fund an amount, to be calculated by the Secretary of Defense 
     in consultation with the Secretary of the Treasury, equal to 
     the actuarial present value of any retired or retainer pay 
     they will draw upon retirement, including full credit for 
     service in the NOAA Corps. Any payment under this 
     subparagraph shall, for purposes of paragraph (2) of section 
     2206(g), be considered to be an expenditure described in such 
     paragraph.
       (B) For commissioned officers who transfer under paragraph 
     (4)(B) to the United States Coast Guard, full credit for 
     service in the NOAA Corps shall be given for purposes of any 
     annuity or other similar benefit under the retirement system 
     for members of the United States Coast Guard, entitlement to 
     which is based on the separation of such officer.
       (C)(i) For a commissioned officer who becomes employed in a 
     civil service position pursuant to paragraph (4)(C) and 
     thereupon becomes subject to the Federal Employees' 
     Retirement System, the National Scientific, Oceanic, and 
     Atmospheric Administration shall pay, on such officer's 
     behalf--
       (I) into the Civil Service Retirement and Disability Fund, 
     the amounts required under clause (ii); and
       (II) into the Government Securities Investment Fund, the 
     amount required under clause (iii).
       (ii)(I) The amount required under this subclause is the 
     amount of any deposit required under section 8422(e)(1) of 
     such title 5 with respect to any prior service performed by 
     the individual as a commissioned officer of the National 
     Oceanic and Atmospheric Administration.
       (II) To determine the amount required under this subclause, 
     first determine, for each year of service with respect to 
     which the deposit under subclause (I) relates, the product of 
     the normal-cost percentage for such year (as determined under 
     the last sentence of this subclause) multiplied by basic pay 
     received by the individual for any such service performed in 
     such year. Second, take the sum of the amounts determined for 
     the respective years under the first sentence. Finally, 
     subtract from such sum the amount of the deposit under 
     subclause (I). For purposes of the first sentence, the 
     normal-cost percentage for any year shall be as determined 
     for such year under the provisions of section 8423(a)(1) of 
     title 5, United States Code, except that, in the case of any 
     year before the first year for which any normal-cost 
     percentage was determined under such provisions, the normal-
     cost percentage for such first year shall be used.
       (iii) The amount required under this clause is the amount 
     by which the separation pay to which the officer would have 
     been entitled under the second sentence of paragraph (2)(A) 
     (assuming the conditions for receiving such separation pay 
     have been met) exceeds the amount of the deposit under clause 
     (ii)(I), if at all.
       (iv)(I) Any contribution made under this subparagraph to 
     the Thrift Savings Plan shall not be subject to any otherwise 
     applicable limitation on contributions contained in the 
     Internal Revenue Code of 1986, and shall not be taken into 
     account in applying any such limitation to other 
     contributions or benefits under the Thrift Savings Plan, 

[[Page H 11950]]
     with respect to the year in which the contribution is made.
       (II) Such plan shall not be treated as failing to meet any 
     nondiscrimination requirement by reason of the making of such 
     contribution.
       (6) Repeals.--(A) The following provisions of law are 
     repealed:
       (i) The Coast and Geodetic Survey Commissioned Officers' 
     Act of 1948 (33 U.S.C. 853a-853o, 853p-853u).
       (ii) The Act of February 16, 1929 (Chapter 221, section 5; 
     45 Stat. 1187; 33 U.S.C. 852a).
       (iii) The Act of January 19, 1942 (Chapter 6; 56 Stat. 6).
       (iv) Section 9 of Public Law 87-649 (76 Stat. 495).
       (v) The Act of May 22, 1917 (Chapter 20, section 16; 40 
     Stat. 87; 33 U.S.C. 854 et seq.).
       (vi) The Act of December 3, 1942 (Chapter 670; 56 Stat. 
     1038.
       (vii) Sections 1 through 5 of Public Law 91-621 (84 Stat. 
     1863; 33 U.S.C. 857-1 et seq.).
       (viii) The Act of August 10, 1956 (Chapter 1041, section 3; 
     70A Stat. 619; 33 U.S.C. 857a).
       (ix) The Act of May 18, 1920 (Chapter 190, section 11; 41 
     Stat. 603; 33 U.S.C. 864).
       (x) The Act of July 22, 1947 (Chapter 286; 61 Stat. 400; 33 
     U.S.C. 873, 874).
       (xi) The Act of August 3, 1956 (Chapter 932; 70 Stat. 988; 
     33 U.S.C. 875, 876).
       (xii) All other Acts inconsistent with this subsection.

     No repeal under this subparagraph shall affect any annuity or 
     other similar benefit payable, under any provision of law so 
     repealed, based on the separation of any individual from the 
     NOAA Corps or its successor on or before September 30, 1998. 
     Any authority exercised by the Secretary of Commerce or his 
     designee with respect to any such benefits shall be exercised 
     by the Administrator of Science, Oceans, and the Atmosphere, 
     and any authorization of appropriations relating to those 
     benefits, which is in effect as of September 30, 1998, shall 
     be considered to have remained in effect.
       (B) The effective date of the repeals under subparagraph 
     (A) shall be October 1, 1998.
       (C)(i) All laws relating to the retirement of commissioned 
     officers of the Navy shall apply to commissioned officers of 
     the former Commissioned Officers Corps of the National 
     Oceanic and Atmospheric Administration and its predecessors.
       (ii) Active service of officers of the former Commissioned 
     Officers Corps of the National Oceanic and Atmospheric 
     Administration and its predecessors who have retired from the 
     Commissioned Officers Corps shall be deemed to be active 
     military service in the United States Navy for purposes of 
     all rights, privileges, immunities, and benefits provided to 
     retired commissioned officers of the Navy by the laws and 
     regulations of the United States and any agency thereof. In 
     the Administration of those laws and regulations with respect 
     to retired officers of the former Commissioned Officers Corps 
     of the National Oceanic and Atmospheric Administration and 
     its predecessors, the authority of the Secretary of the Navy 
     shall be exercised by the Administrator of Science, Oceans, 
     and the Atmosphere.
       (iii) For purposes of this subparagraph, the term ``its 
     predecessors'' means the former Commissioned Officers Corps 
     of the Environmental Science Services Administration and the 
     former Commissioned Officers Corps of the Coast and Geodetic 
     Survey.
       (7) Creditability of noaa service for purposes relating to 
     reductions in force.--A commissioned officer who is separated 
     from the active list of the National Oceanic and Atmospheric 
     Administration or its successor because of paragraph (1) 
     shall, for purposes of any subsequent reduction in force, 
     receive credit for any period of service performed as such an 
     officer before separation from such list to the same extent 
     and in the same manner as if it had been a period of active 
     service in the Armed Forces.
       (8) Abolition.--The Office of the National Oceanic and 
     Atmospheric Administration Corps of Operations or its 
     successor and the Commissioned Personnel Center are abolished 
     effective September 30, 1998.
       (h) NOAA Fleet.--
       (1) Service contracts.--Notwithstanding any other provision 
     of law and subject to the availability of appropriations, the 
     Administrator of Science, Oceans, and the Atmosphere shall 
     enter into contracts, including multiyear contracts, subject 
     to paragraph (3), for the use of vessels to conduct 
     oceanographic research and fisheries research, monitoring, 
     enforcement, and management, and to acquire other data 
     necessary to carry out the missions of the National 
     Scientific, Oceanic, and Atmospheric Administration. The 
     Administrator of Science, Oceans, and the Atmosphere shall 
     enter into these contracts unless--
       (A) the cost of the contract is more than the cost 
     (including the cost of vessel operation, maintenance, and all 
     personnel) to the National Scientific, Oceanic, and 
     Atmospheric Administration of obtaining those services on 
     vessels of the National Scientific, Oceanic, and Atmospheric 
     Administration;
       (B) the contract is for more than 7 years; or
       (C) the data is acquired through a vessel agreement 
     pursuant to paragraph (4).
       (2) Vessels.--The Administrator of Science, Oceans, and the 
     Atmosphere may not enter into any contract for the 
     construction, lease-purchase, upgrade, or service life 
     extension of any vessel.
       (3) Multiyear contracts.--
       (A) In general.--Subject to subparagraphs (B) and (C), and 
     notwithstanding section 1341 of title 31, United States Code, 
     and section 11 of title 41, United States Code, the 
     Administrator of Science, Oceans, and the Atmosphere may 
     acquire data under multiyear contracts.
       (B) Required findings.--The Administrator of Science, 
     Oceans, and the Atmosphere may not enter into a contract 
     pursuant to this paragraph unless such Administrator finds 
     with respect to that contract that there is a reasonable 
     expectation that throughout the contemplated contract period 
     the Administrator will request from Congress funding for the 
     contract at the level required to avoid contract termination.
       (C) Required provisions.--The Administrator of Science, 
     Oceans, and the Atmosphere may not enter into a contract 
     pursuant to this paragraph unless the contract includes--
       (i) a provision under which the obligation of the United 
     States to make payments under the contract for any fiscal 
     year is subject to the availability of appropriations 
     provided in advance for those payments;
       (ii) a provision that specifies the term of effectiveness 
     of the contract; and
       (iii) appropriate provisions under which, in case of any 
     termination of the contract before the end of the term 
     specified pursuant to clause (ii), the United States shall 
     only be liable for the lesser of--

       (I) an amount specified in the contract for such a 
     termination; or
       (II) amounts that were appropriated before the date of the 
     termination for the performance of the contract or for 
     procurement of the type of acquisition covered by the 
     contract and are unobligated on the date of the termination.

       (4) Vessel agreements.--The Administrator of Science, 
     Oceans, and the Atmosphere shall use excess capacity of 
     University National Oceanographic Laboratory System vessels 
     where appropriate and may enter into memoranda of agreement 
     with the operators of these vessels to carry out this 
     requirement.
       (5) Transfer of excess vessels.--The Administrator of 
     Science, Oceans, and the Atmosphere shall transfer any 
     vessels over 1,500 gross tons that are excess to the needs of 
     the National Scientific, Oceanic, and Atmospheric 
     Administration to the National Defense Reserve Fleet. 
     Notwithstanding any other provision of law, these vessels may 
     be scrapped in accordance with section 510(i) of the Merchant 
     Marine Act, 1936 (46 App. U.S.C. 1160(i)).
       (i) National Marine Fisheries Service.--(1) There are 
     transferred to the National Scientific, Oceanic, and 
     Atmospheric Administration all functions that on the day 
     before the effective date of this section were authorized by 
     law to be performed by the National Marine Fisheries Service.
       (2) Notwithstanding any other provision of law, the 
     National Marine Fisheries Service may not affect on-land 
     activities under the Endangered Species Act of 1973 for 
     salmon recovery in the State of Idaho (16 U.S.C. 1531 et 
     seq.).
       (j) National Ocean Service.--Except as otherwise provided 
     in this title, there are transferred to the National 
     Scientific, Oceanic, and Atmospheric Administration all 
     functions and assets of the National Oceanic and Atmospheric 
     Administration that on the date immediately before the 
     effective date of this section were authorized to be 
     performed by the National Ocean Service (including the 
     Coastal Ocean Program).
       (k) Transfer of Coastal Nonpoint Pollution Control 
     Functions.--There are transferred to the Administrator of the 
     Environmental Protection Agency the functions under section 
     6217 of the Omnibus Budget Reconciliation Act of 1990 (16 
     U.S.C. 1455b) that on the day before the effective date of 
     this section were vested in the Secretary of Commerce.

     SEC. 2206. NATIONAL SCIENTIFIC, OCEANIC, AND ATMOSPHERIC 
                   ADMINISTRATION.

       (a) Establishment.--There is established as an independent 
     agency in the Executive Branch the National Scientific, 
     Oceanic, and Atmospheric Administration (in this section 
     referred to as the ``NSOAA''). The NSOAA, and all functions 
     and offices transferred to it under this title, shall be 
     administered under the supervision and direction of an 
     Administrator of Science, Oceans, and the Atmosphere. The 
     Administrator of Science, Oceans, and the Atmosphere shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate, and shall receive basic pay at the 
     rate payable for level II of the Executive Schedule under 
     section 5313 of title 5, United States Code. The 
     Administrator of Science, Oceans, and the Atmosphere shall 
     additionally perform the functions previously performed by 
     the Administrator of the National Oceanic and Atmospheric 
     Administration.
       (b) Principal Officer.--There shall be in the NSOAA, on the 
     transfer of functions and offices under this title, a 
     Director of the National Bureau of Standards, who shall be 
     appointed by the President, by and with the advice and 
     consent of the Senate, and who shall receive basic pay at the 
     rate payable for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code.
       (c) Additional Officers.--There shall be in the NSOAA--
       (1) a Chief Financial Officer of the NSOAA, to be appointed 
     by the President, by and with the advice and consent of the 
     Senate;
       (2) a Chief of External Affairs, to be appointed by the 
     President, by and with the advice and consent of the Senate;

[[Page H 11951]]

       (3) a General Counsel, to be appointed by the President, by 
     and with the advice and consent of the Senate; and
       (4) an Inspector General, to be appointed in accordance 
     with the Inspector General Act of 1978.

     Each Officer appointed under this subsection shall receive 
     basic pay at the rate payable for level IV of the Executive 
     Schedule under section 5315 of title 5, United States Code.
       (d) Transfer of Functions and Offices.--Except as otherwise 
     provided in this title, there are transferred to the NSOAA--
       (1) the functions and offices of the National Oceanic and 
     Atmospheric Administration, as provided in section 2205;
       (2) the National Bureau of Standards, along with its 
     functions and offices, as provided in section 2202; and
       (3) the Office of Space Commerce, along with its functions 
     and offices.
       (e) Elimination of Positions.--The Administrator of 
     Science, Oceans, and the Atmosphere may eliminate positions 
     that are no longer necessary because of the termination of 
     functions under this section, section 2202, and section 2205.
       (f) Agency Terminations.--
       (1) Terminations.--On the date specified in section 
     2208(a), the following shall terminate:
       (A) The Office of the Deputy Administrator and Assistant 
     Secretary of the National Oceanic and Atmospheric 
     Administration.
       (B) The Office of the Deputy Under Secretary of the 
     National Oceanic and Atmospheric Administration.
       (C) The Office of the Chief Scientist of the National 
     Oceanic and Atmospheric Administration.
       (D) The position of Deputy Assistant Secretary for Oceans 
     and Atmosphere.
       (E) The position of Deputy Assistant Secretary for 
     International Affairs.
       (F) Any office of the National Oceanic and Atmospheric 
     Administration or the National Bureau of Standards whose 
     primary purpose is to perform high performance computing 
     communications, legislative, personnel, public relations, 
     budget, constituent, intergovernmental, international, policy 
     and strategic planning, sustainable development, 
     administrative, financial, educational, legal and 
     coordination functions. These functions shall, as necessary, 
     be performed only by officers described in subsection (c).
       (G) The position of Associate Director of the National 
     Institute of Standards and Technology.
       (2) Termination of executive schedule positions.--Each 
     position which was expressly authorized by law, or the 
     incumbent of which was authorized to receive compensation at 
     the rate prescribed for levels I through V of the Executive 
     Schedule under sections 5312 through 5315 of title 5, United 
     States Code, in an office terminated pursuant to this 
     section, section 2202, and section 2205 shall also terminate.
       (g) Funding Reductions Resulting From Reorganization.--
       (1) Funding reductions.--Notwithstanding the transfer of 
     functions under this subtitle, the total amount obligated or 
     expended by the United States in performing all functions 
     vested in the National Scientific, Oceanic, and Atmospheric 
     Administration pursuant to this subtitle shall not exceed--
       (A) for the first fiscal year that begins after the 
     abolishment date specified in section 2101(c), 75 percent of 
     the total amount appropriated for fiscal year 1995 for the 
     performance of all functions vested in the National Oceanic 
     and Atmospheric Administration, the National Institute of 
     Standards and Technology, and the Office of Space Commerce, 
     except for those functions transferred under section 2205 to 
     agencies or departments other than the National Scientific, 
     Oceanic, and Atmospheric Administration; and
       (B) for the second fiscal year that begins after the 
     abolishment date specified in section 2101(c) and for each 
     fiscal year thereafter, 65 percent of the total amount 
     appropriated for fiscal year 1995 for the performance of all 
     functions vested in the National Oceanic and Atmospheric 
     Administration, the National Institute of Standards and 
     Technology, and the Office of Space Commerce, except for 
     those functions transferred under section 22045 to agencies 
     or departments other than the National Scientific, Oceanic, 
     and Atmospheric Administration.
       (2) Exception.--Paragraph (1) shall not apply to 
     obligations or expenditures incurred as a direct consequence 
     of the termination, transfer, or other disposition of 
     functions described in paragraph (1) pursuant to this 
     subtitle.
       (3) Rule of construction.--This subsection shall take 
     precedence over any other provision of law unless such 
     provision explicitly refers to this section and makes an 
     exception to it.
       (4) Responsibility of national scientific, oceanic, and 
     atmospheric administration.--The National Scientific, 
     Oceanic, and Atmospheric Administration, in consultation with 
     the Director of the Office of Management and Budget, shall 
     make such modifications in programs as are necessary to carry 
     out the reductions in appropriations set forth in 
     subparagraphs (A) and (B) of paragraph (1).
       (5) Responsibilities of the director of the office of 
     management and budget.--The Director of the Office of 
     Management and Budget shall include in each report under 
     sections 2105(a) and (b) a description of actions taken to 
     comply with the requirements of this subsection.

     SEC. 2207. MISCELLANEOUS TERMINATIONS; MORATORIUM ON PROGRAM 
                   ACTIVITIES.

       (a) Terminations.--The following agencies and programs of 
     the Department of Commerce are terminated:
       (1) The Minority Business Development Administration.
       (2) The United States Travel and Tourism Administration.
       (3) The programs and activities of the National 
     Telecommunications and Information Administration referred to 
     in section 2204(a).
       (4) The Advanced Technology Program under section 28 of the 
     National Institute of Standards and Technology Act (15 U.S.C. 
     278n).
       (5) The Manufacturing Extension Programs under sections 25 
     and 26 of the National Institute of Standards and Technology 
     Act (15 U.S.C. 278k and 278l).
       (6) The National Institute of Standards and Technology 
     METRIC Program.
       (b) Moratorium on Program Activities.--The authority to 
     make grants, enter into contracts, provide assistance, incur 
     obligations, or provide commitments (including any 
     enlargement of existing obligations or commitments, except if 
     required by law) with respect to the agencies and programs 
     described in subsection (a) is terminated effective on the 
     date of the enactment of this title.

     SEC. 2208. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     subtitle shall take effect on the abolishment date specified 
     in section 2101(c).
       (b) Provisions Effective on Date of Enactment.--The 
     following provisions of this subtitle shall take effect on 
     the date of the enactment of this Act:
       (1) Section 2201.
       (2) Section 2205(g), except as otherwise provided in that 
     section.
       (3) Section 2207(b).
       (4) This section.
        Subtitle C--Office of United States Trade Representative

                     CHAPTER 1--GENERAL PROVISIONS

     SEC. 2301. DEFINITIONS.

       For purposes of this subtitle--
       (1) the term ``Office'' means the Office of the United 
     States Trade Representative;
       (2) the term ``Federal agency'' has the meaning given to 
     the term ``agency'' by section 551(1) of title 5, United 
     States Code; and
       (3) the term ``USTR'' means the United States Trade 
     Representative as provided for under section 2311.

        CHAPTER 2--OFFICE OF UNITED STATES TRADE REPRESENTATIVE

                      Subchapter A--Establishment

     SEC. 2311. ESTABLISHMENT OF THE OFFICE.

       (a) In General.--The Office of the United States Trade 
     Representative is established as an independent establishment 
     in the executive branch of Government as defined under 
     section 104 of title 5, United States Code. The United States 
     Trade Representative shall be the head of the Office and 
     shall be appointed by the President, by and with the advice 
     and consent of the Senate.
       (b) Ambassador Status.--The USTR shall have the rank and 
     status of Ambassador and shall represent the United States in 
     all trade negotiations conducted by the Office.
       (c) Continued Service of Current USTR.--The individual 
     serving as United States Trade Representative on the date 
     immediately preceding the effective date of this subtitle may 
     continue to serve as USTR under subsection (a).
       (d) Successor to the Department of Commerce.--The Office 
     shall be the successor to the Department of Commerce for 
     purposes of protocol.

     SEC. 2312. FUNCTIONS OF THE USTR.

       (a) In General.--In addition to the functions transferred 
     to the USTR by this subtitle, such other functions as the 
     President may assign or delegate to the USTR, and such other 
     functions as the USTR may, after the effective date of this 
     subtitle, be required to carry out by law, the USTR shall--
       (1) serve as the principal advisor to the President on 
     international trade policy and advise the President on the 
     impact of other policies of the United States Government on 
     international trade;
       (2) exercise primary responsibility, with the advice of the 
     interagency organization established under section 242 of the 
     Trade Expansion Act of 1962, for developing and implementing 
     international trade policy, including commodity matters and, 
     to the extent related to international trade policy, direct 
     investment matters and, in exercising such responsibility, 
     advance and implement, as the primary mandate of the Office, 
     the goals of the United States to--
       (A) maintain United States leadership in international 
     trade liberalization and expansion efforts;
       (B) reinvigorate the ability of the United States economy 
     to compete in international markets and to respond flexibly 
     to changes in international competition; and
       (C) expand United States participation in international 
     trade through aggressive promotion and marketing of goods and 
     services that are products of the United States;
       (3) exercise lead responsibility for the conduct of 
     international trade negotiations, including negotiations 
     relating to commodity matters and, to the extent that such 
     negotiations are related to international trade, direct 
     investment negotiations;

[[Page H 11952]]

       (4) exercise lead responsibility for the establishment of a 
     national export strategy, including policies designed to 
     implement such strategy;
       (5) with the advice of the interagency organization 
     established under section 242 of the Trade Expansion Act of 
     1962, issue policy guidance to other Federal agencies on 
     international trade, commodity, and direct investment 
     functions to the extent necessary to assure the coordination 
     of international trade policy;
       (6) seek and promote new opportunities for United States 
     products and services to compete in the world marketplace;
       (7) assist small businesses in developing export markets;
       (8) enforce the laws of the United States relating to 
     trade;
       (9) analyze economic trends and developments;
       (10) report directly to the Congress--
       (A) on the administration of, and matters pertaining to, 
     the trade agreements program under the Omnibus Trade and 
     Competitiveness Act of 1988, the Trade Act of 1974, the Trade 
     Expansion Act of 1962, section 350 of the Tariff Act of 1930, 
     and any other provision of law enacted after this Act; and
       (B) with respect to other important issues pertaining to 
     international trade;
       (11) keep each official adviser to the United States 
     delegations to international conferences, meetings, and 
     negotiation sessions relating to trade agreements who is 
     appointed from the Committee on Finance of the Senate or the 
     Committee on Ways and Means of the House of Representatives 
     under section 161 of the Trade Act of 1974 currently informed 
     on United States negotiating objectives with respect to trade 
     agreements, the status of negotiations in progress with 
     respect to such agreements, and the nature of any changes in 
     domestic law or the administration thereof which the USTR may 
     recommend to the Congress to carry out any trade agreement;
       (12) consult and cooperate with State and local governments 
     and other interested parties on international trade matters 
     of interest to such governments and parties, and to the 
     extent related to international trade matters, on investment 
     matters, and, when appropriate, hold informal public 
     hearings;
       (13) serve as the principal advisor to the President on 
     Government policies designed to contribute to enhancing the 
     ability of United States industry and services to compete in 
     international markets;
       (14) develop recommendations for national strategies and 
     specific policies intended to enhance the productivity and 
     international competitiveness of United States industries;
       (15) serve as the principal advisor to the President in 
     identifying and assessing the consequences of any Government 
     policies that adversely affect, or have the potential to 
     adversely affect, the international competitiveness of United 
     States industries and services;
       (16) promote cooperation between business, labor, and 
     Government to improve industrial performance and the ability 
     of United States industries to compete in international 
     markets and to facilitate consultation and communication 
     between the Government and the private sector about domestic 
     industrial performance and prospects and the performance and 
     prospects of foreign competitors; and
       (17) monitor and enforce foreign government compliance with 
     international trade agreements to protect United States 
     interests.
       (b) Interagency Organization.--The USTR shall be the 
     chairperson of the interagency organization established under 
     section 242 of the Trade Expansion Act of 1962.
       (c) National Security Council.--The USTR shall be a member 
     of the National Security Council.
       (d) Advisory Council.--The USTR shall be Deputy Chairman of 
     the National Advisory Council on International Monetary and 
     Financial Policies established under Executive Order 11269, 
     issued February 14, 1966.
       (e) Agriculture.--(1) The USTR shall consult with the 
     Secretary of Agriculture or the designee of the Secretary of 
     Agriculture on all matters that potentially involve 
     international trade in agricultural products.
       (2) If an international meeting for negotiation or 
     consultation includes discussion of international trade in 
     agricultural products, the USTR or the designee of the USTR 
     shall be Chairman of the United States delegation to such 
     meeting and the Secretary of Agriculture or the designee of 
     such Secretary shall be Vice Chairman. The provisions of this 
     paragraph shall not limit the authority of the USTR under 
     subsection (h) to assign to the Secretary of Agriculture 
     responsibility for the conduct of, or participation in, any 
     trade negotiation or meeting.
       (f) Trade Promotion.--The USTR shall be the chairperson of 
     the Trade Promotion Coordinating Committee.
       (g) National Economic Council.--The USTR shall be a member 
     of the National Economic Council established under Executive 
     Order No. 12835, issued January 25, 1993.
       (h) International Trade Negotiations.--Except where 
     expressly prohibited by law, the USTR, at the request or with 
     the concurrence of the head of any other Federal agency, may 
     assign the responsibility for conducting or participating in 
     any specific international trade negotiation or meeting to 
     the head of such agency whenever the USTR determines that the 
     subject matter of such international trade negotiation is 
     related to the functions carried out by such agency.

                         Subchapter B--Officers

     SEC. 2321. DEPUTY ADMINISTRATOR OF THE OFFICE.

       (a) Establishment.--There shall be in the Office the Deputy 
     Administrator of the Office of the United States Trade 
     Representative, who shall be appointed by the President, by 
     and with the advice and consent of the Senate.
       (b) Absence, Disability, or Vacancy of USTR.--The Deputy 
     Administrator of the Office of the United States Trade 
     Representative shall act for and exercise the functions of 
     the USTR during the absence or disability of the USTR or in 
     the event the office of the USTR becomes vacant. The Deputy 
     Administrator shall act for and exercise the functions of the 
     USTR until the absence or disability of the USTR no longer 
     exists or a successor to the USTR has been appointed by the 
     President and confirmed by the Senate.
       (c) Functions of Deputy Administrator.--The Deputy 
     Administrator of the Office of the United States Trade 
     Representative shall exercise all functions, under the 
     direction of the USTR, transferred to or established in the 
     Office, except those functions exercised by the Deputy United 
     States Trade Representatives, the Director General for Export 
     Promotion, the Inspector General, and the General Counsel of 
     the Office, as provided by this subtitle.

     SEC. 2322. DEPUTY UNITED STATES TRADE REPRESENTATIVES.

       (a) Establishment.--There shall be in the Office 2 Deputy 
     United States Trade Representatives, who shall be appointed 
     by the President, by and with the advice and consent of the 
     Senate. The Deputy United States Trade Representatives shall 
     exercise all functions under the direction of the USTR, and 
     shall include--
       (1) the Deputy United States Trade Representative for 
     Negotiations; and
       (2) the Deputy United States Trade Representative to the 
     World Trade Organization.
       (b) Functions of Deputy United States Trade 
     Representatives.--(1) The Deputy United States Trade 
     Representative for Negotiations shall exercise all functions 
     transferred under section 2331 and shall have the rank and 
     status of Ambassador.
       (2) The Deputy United States Trade Representative to the 
     World Trade Organization shall exercise all functions 
     relating to representation to the World Trade Organization 
     and shall have the rank and status of Ambassador.

     SEC. 2323. ASSISTANT ADMINISTRATORS.

       (a) Establishment.--There shall be in the Office 3 
     Assistant Administrators, who shall be appointed by the 
     President, by and with the advice and consent of the Senate. 
     The Assistant Administrators shall exercise all functions 
     under the direction of the Deputy Administrator of the Office 
     of the United States Trade Representative and include--
       (1) the Assistant Administrator for Export Administration;
       (2) the Assistant Administrator for Import Administration; 
     and
       (3) the Assistant Administrator for Trade and Policy 
     Analysis.
       (b) Functions of Assistant Administrators.--(1) The 
     Assistant Administrator for Export Administration shall 
     exercise all functions transferred under section 2332(1)(C).
       (2) The Assistant Administrator for Import Administration 
     shall exercise all functions transferred under section 
     2332(1)(D).
       (3) The Assistant Administrator for Trade and Policy 
     Analysis shall exercise all functions transferred under 
     section 2332(1)(B) and all functions transferred under 
     section 2332(2).

     SEC. 2324. DIRECTOR GENERAL FOR EXPORT PROMOTION.

       (a) Establishment.--There shall be a Director General for 
     Export Promotion, who shall be appointed by the President, by 
     and with the advice and consent of the Senate.
       (b) Functions.--The Director General for Export Promotion 
     shall exercise, under the direction of the USTR, all 
     functions transferred under sections 2332(1)(A) (relating to 
     functions of the United States and Foreign Commercial 
     Service) and 2333 and shall have the rank and status of 
     Ambassador.

     SEC. 2325. GENERAL COUNSEL.

       There shall be in the Office a General Counsel, who shall 
     be appointed by the President, by and with the advice and 
     consent of the Senate. The General Counsel shall provide 
     legal assistance to the USTR concerning the activities, 
     programs, and policies of the Office.

     SEC. 2326. INSPECTOR GENERAL.

       There shall be in the Office an Inspector General who shall 
     be appointed in accordance with the Inspector General Act of 
     1978, as amended by section 2371(b) of this Act.

     SEC. 2327. CHIEF FINANCIAL OFFICER.

       There shall be in the Office a Chief Financial Officer who 
     shall be appointed in accordance with section 901 of title 
     31, United States Code, as amended by section 2371(e) of this 
     Act. The Chief Financial Officer shall perform all functions 
     prescribed by the Deputy Administrator of the Office of the 
     United States Trade Representative, under the direction of 
     the Deputy Administrator.

                 Subchapter C--Transfers to the Office

     SEC. 2331. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

       There are transferred to the USTR all functions of the 
     United States Trade Representative and the Office of the 
     United 

[[Page H 11953]]
     States Trade Representative in the Executive Office of the President 
     and all functions of any officer or employee of such Office.

     SEC. 2332. TRANSFERS FROM THE DEPARTMENT OF COMMERCE.

       There are transferred to the USTR the following functions:
       (1) All functions of, and all functions performed under the 
     direction of, the following officers and employees of the 
     Department of Commerce:
       (A) The Under Secretary of Commerce for International 
     Trade, and the Director General of the United States and 
     Foreign Commercial Service, relating to all functions 
     exercised by the Service.
       (B) The Assistant Secretary of Commerce for International 
     Economic Policy and the Assistant Secretary of Commerce for 
     Trade Development.
       (C) The Under Secretary of Commerce for Export 
     Administration.
       (D) The Assistant Secretary of Commerce for Import 
     Administration.
       (2) All functions of the Secretary of Commerce relating to 
     the National Trade Data Bank.
       (3) All functions of the Secretary of Commerce under the 
     Tariff Act of 1930, the Uruguay Round Agreements Act, the 
     Trade Act of 1974, and other trade-related Acts for which 
     responsibility is not otherwise assigned under this subtitle.

     SEC. 2333. TRADE AND DEVELOPMENT AGENCY.

       There are transferred to the Director General for Export 
     Promotion all functions of the Director of the Trade and 
     Development Agency. There are transferred to the Office of 
     the Director General for Export Promotion all functions of 
     the Trade and Development Agency.

     SEC. 2334. EXPORT-IMPORT BANK.

       (a) In General.--(1) There are transferred to the USTR all 
     functions of the Secretary of Commerce relating to the 
     Export-Import Bank of the United States.
       (2) Section 3(c)(1) of the Export-Import Bank Act of 1945 
     (12 U.S.C. 635a(c)(1)) is amended to read as follows:
       ``(c)(1) There shall be a Board of Directors of the Bank 
     consisting of the United States Trade Representative (who 
     shall serve as Chairman), the President of the Export-Import 
     Bank of the United States (who shall serve as Vice Chairman), 
     the first Vice President, and 2 additional persons appointed 
     by the President of the United States, by and with the advice 
     and consent of the Senate.''.
       (b) Ex Officio Member of Export-Import Bank Board of 
     Directors.--The Director General for Export Promotion shall 
     serve as an ex officio nonvoting member of the Board of 
     Directors of the Export-Import Bank.
       (c) Amendments to Related Banking and Trade Acts.--Section 
     2301(h) of the Omnibus Trade and Competitiveness Act of 1988 
     (15 U.S.C. 4721(h)) is amended to read as follows:
       ``(h) Assistance to Export-Import Bank.--The Commercial 
     Service shall provide such services as the Director General 
     for Export Promotion of the Office of the United States Trade 
     Representative determines necessary to assist the Export-
     Import Bank of the United States to carry out the lending, 
     loan guarantee, insurance, and other activities of the 
     Bank.''.

     SEC. 2335. OVERSEAS PRIVATE INVESTMENT CORPORATION.

       (a) Board of Directors.--The second and third sentences of 
     section 233(b) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2193(b)) are amended to read as follows: ``The United 
     States Trade Representative shall be the Chairman of the 
     Board. The Administrator of the Agency for International 
     Development (who shall serve as Vice Chairman) shall serve on 
     the Board.''.
       (b) Ex Officio Member of Overseas Private Investment 
     Corporation Board of Directors.--The Director General for 
     Export Promotion shall serve as an ex officio nonvoting 
     member of the Board of Directors of the Overseas Private 
     Investment Corporation.

     SEC. 2336. CONSOLIDATION OF EXPORT PROMOTION AND FINANCING 
                   ACTIVITIES.

       (a) Submission of Plan.--Within 180 days after the date of 
     the enactment of this Act, the President shall transmit to 
     the Congress a comprehensive plan to consolidate Federal 
     nonagricultural export promotion activities and export 
     financing activities and to transfer those functions to the 
     Office. The plan shall provide for--
       (1) the elimination of the overlap and duplication among 
     all Federal nonagricultural export promotion activities and 
     export financing activities;
       (2) a unified budget for Federal nonagricultural export 
     promotion activities which eliminates funding for the areas 
     of overlap and duplication identified under paragraph (1); 
     and
       (3) a long-term agenda for developing better cooperation 
     between local, State and Federal programs and activities 
     designed to stimulate or assist United States businesses in 
     exporting nonagricultural goods or services that are products 
     of the United States, including sharing of facilities, costs, 
     and export market research data.
       (b) Plan Elements.--The plan under subsection (a) shall--
       (1) place all Federal nonagricultural export promotion 
     activities and export financing activities within the Office;
       (2) provide clear authority for the USTR to use the 
     expertise and assistance of other United States Government 
     agencies;
       (3) achieve an overall 25 percent reduction in the amount 
     of funding for all Federal nonagricultural export promotion 
     activities within 2 years after the enactment of this Act;
       (4) include any functions of the Department of Commerce not 
     transferred by this subtitle, or of other Federal departments 
     the transfer of which to the Office would be necessary to the 
     competitiveness of the United States in international trade; 
     and
       (5) assess the feasibility and potential savings resulting 
     from--
       (A) the consolidation of the Export-Import Bank of the 
     United States and the Overseas Private Investment 
     Corporation;
       (B) the consolidation of the Boards of Directors of the 
     Export-Import Bank and the Overseas Private Investment 
     Corporation; and
       (C) the consolidation of the Trade and Development Agency 
     with the consolidations under subparagraphs (A) and (B).
       (c) Definition.--As used in this section, the term 
     ``Federal nonagricultural export promotion activities'' means 
     all programs or activities of any department or agency of the 
     Federal Government (including, but not limited to, 
     departments and agencies with representatives on the Trade 
     Promotion Coordinating Committee established under section 
     2312 of the Export Enhancement Act of 1988 (15 U.S.C. 4727)) 
     that are designed to stimulate or assist United States 
     businesses in exporting nonagricultural goods or services 
     that are products of the United States, including trade 
     missions.

     SEC. 2337. ADDITIONAL TRADE FUNCTIONS.

       (a) Termination of Authorizations of Appropriations.--
       (1) NAFTA secretariat.--Section 105(b) of the North 
     American Free Trade Agreement Implementation Act (19 U.S.C. 
     3315(b)) is amended by striking ``each fiscal year after 
     fiscal year 1993'' and inserting ``each of fiscal years 1994 
     and 1995''.
       (2) Border environment cooperation commission.--Section 
     533(a)(2) of the North American Free Trade Agreement 
     Implementation Act (19 U.S.C. 3473(a)(2)) is amended by 
     striking ``and each fiscal year thereafter'' and inserting 
     ``fiscal year 1995''.
       (b) Functions Related to Textile Agreements.--
       (1) Functions of cita.--(A) Subject to subparagraph (B), 
     those functions delegated to the Committee for the 
     Implementation of Textile Agreements established under 
     Executive Order 11651 (7 U.S.C. 1854 note) (hereafter in this 
     subsection referred to as ``CITA'') are transferred to the 
     USTR.
       (B) Those functions delegated to CITA that relate to the 
     assessment of the impact of textile imports on domestic 
     industry are transferred to the International Trade 
     Commission. The International Trade Commission shall make a 
     determination pursuant to the preceding sentence within 60 
     days after receiving a complaint or request for an 
     investigation.
       (2) Abolition of cita.--CITA is abolished.

                Subchapter D--Administrative Provisions

     SEC. 2341. PERSONNEL PROVISIONS.

       (a) Appointments.--The USTR may appoint and fix the 
     compensation of such officers and employees, including 
     investigators, attorneys, and administrative law judges, as 
     may be necessary to carry out the functions of the USTR and 
     the Office. Except as otherwise provided by law, such 
     officers and employees shall be appointed in accordance with 
     the civil service laws and their compensation fixed in 
     accordance with title 5, United States Code.
       (b) Positions Above GS-15.--(1) At the request of the USTR, 
     the Director of the Office of Personnel Management shall, 
     under section 5108 of title 5, United States Code, provide 
     for the establishment in a grade level above GS-15 of the 
     General Service, and in the Senior Executive Service, of a 
     number of positions in the Office equal to the number of 
     positions in that grade level which were used primarily for 
     the performance of functions and offices transferred by this 
     subtitle and which were assigned and filled on the day before 
     the effective date of this subtitle.
       (2) Appointments to positions provided for under this 
     subsection may be made without regard to the provisions of 
     section 3324 of title 5, United States Code, if the 
     individual appointed in such position is an individual who is 
     transferred in connection with the transfer of functions and 
     offices under this subtitle and, on the day before the 
     effective date of this subtitle, holds a position and 
     has duties comparable to those of the position to which 
     appointed under this subsection.
       (3) The authority under this subsection with respect to any 
     position established at a grade level above GS-15 shall 
     terminate when the person first appointed to fill such 
     position ceases to hold such position.
       (4) For purposes of section 414(a)(3)(A) of the Civil 
     Service Reform Act of 1978, an individual appointed under 
     this subsection shall be deemed to occupy the same position 
     as the individual occupied on the day before the effective 
     date of this subtitle.
       (c) Experts and Consultants.--The USTR may obtain the 
     services of experts and consultants in accordance with 
     section 3109 of title 5, United States Code, and compensate 
     such experts and consultants for each day (including 
     traveltime) at rates not in excess of the maximum rate of pay 
     for a position above GS-15 of the General Schedule under 
     section 5332 of such title. The USTR may pay experts and 
     consultants who are serving away from their homes or regular 
     place of business travel expenses and per diem in lieu 

[[Page H 11954]]
     of subsistence at rates authorized by sections 5702 and 5703 of such 
     title for persons in Government service employed 
     intermittently.
       (d) Voluntary Services.--(1)(A) The USTR is authorized to 
     accept voluntary and uncompensated services without regard to 
     the provisions of section 1342 of title 31, United States 
     Code, if such services will not be used to displace Federal 
     employees employed on a full-time, part-time, or seasonal 
     basis.
       (B) The USTR is authorized to accept volunteer service in 
     accordance with the provisions of section 3111 of title 5, 
     United States Code.
       (2) The USTR is authorized to provide for incidental 
     expenses, including but not limited to transportation, 
     lodging, and subsistence for individuals who provide 
     voluntary services under subparagraph (A) or (B) of paragraph 
     (1).
       (3) An individual who provides voluntary services under 
     paragraph (1)(A) shall not be considered a Federal employee 
     for any purpose other than for purposes of chapter 81 of 
     title 5, United States Code, relating to compensation for 
     work injuries, and chapter 171 of title 28, United States 
     Code, relating to tort claims.
       (e) Foreign Service Positions.--In order to assure United 
     States representation in trade matters at a level 
     commensurate with the level of representation maintained by 
     industrial nations which are major trade competitors of the 
     United States, the Secretary of State shall classify certain 
     positions at Foreign Service posts as commercial minister 
     positions and shall assign members of the Foreign Service 
     performing functions of the Office, with the concurrence of 
     the USTR, to such positions in nations which are major trade 
     competitors of the United States. The Secretary of State 
     shall obtain and use the recommendations of the USTR with 
     respect to the number of positions to be so classified under 
     this subsection.

     SEC. 2342. DELEGATION AND ASSIGNMENT.

       Except where otherwise expressly prohibited by law or 
     otherwise provided by this subtitle, the USTR may delegate 
     any of the functions transferred to the USTR by this subtitle 
     and any function transferred or granted to the USTR after the 
     effective date of this subtitle to such officers and 
     employees of the Office as the USTR may designate, and may 
     authorize successive redelegations of such functions as may 
     be necessary or appropriate. No delegation of functions by 
     the USTR under this section or under any other provision of 
     this subtitle shall relieve the USTR of responsibility for 
     the administration of such functions.

     SEC. 2343. SUCCESSION.

       (a) Order of Succession.--Subject to the authority of the 
     President, and except as provided in section 2321(b), the 
     USTR shall prescribe the order by which officers of the 
     Office who are appointed by the President, by and with the 
     advice and consent of the Senate, shall act for, and perform 
     the functions of, the USTR or any other officer of the Office 
     appointed by the President, by and with the advice and 
     consent of the Senate, during the absence or disability of 
     the USTR or such other officer, or in the event of a vacancy 
     in the office of the USTR or such other officer.
       (b) Continuation.--Notwithstanding any other provision of 
     law, and unless the President directs otherwise, an 
     individual acting for the USTR or another officer of the 
     Office pursuant to subsection (a) shall continue to serve in 
     that capacity until the absence or disability of the USTR or 
     such other officer no longer exists or a successor to the 
     USTR or such other officer has been appointed by the 
     President and confirmed by the Senate.

     SEC. 2344. REORGANIZATION.

       (a) In General.--Subject to subsection (b), the USTR is 
     authorized to allocate or reallocate functions among the 
     officers of the Office, and to establish, consolidate, alter, 
     or discontinue such organizational entities in the Office as 
     may be necessary or appropriate.
       (b) Exception.--The USTR may not exercise the authority 
     under subsection (a) to establish, consolidate, alter, or 
     discontinue any organizational entity in the Office or 
     allocate or reallocate any function of an officer or employee 
     of the Office that is inconsistent with any specific 
     provision of this subtitle.

     SEC. 2345. RULES.

       The USTR is authorized to prescribe, in accordance with the 
     provisions of chapters 5 and 6 of title 5, United States 
     Code, such rules and regulations as the USTR determines 
     necessary or appropriate to administer and manage the 
     functions of the USTR or the Office.

     SEC. 2346. FUNDS TRANSFER.

       The USTR may, when authorized in an appropriation Act in 
     any fiscal year, transfer funds from one appropriation to 
     another within the Office, except that no appropriation for 
     any fiscal year shall be either increased or decreased by 
     more than 10 percent and no such transfer shall result in 
     increasing any such appropriation above the amount authorized 
     to be appropriated therefor.

     SEC. 2347. CONTRACTS, GRANTS, AND COOPERATIVE AGREEMENTS.

       (a) In General.--Subject to the provisions of the Federal 
     Property and Administrative Services Act of 1949, the USTR 
     may make, enter into, and perform such contracts, leases, 
     cooperative agreements, grants, or other similar transactions 
     with public agencies, private organizations, and persons, and 
     make payments (in lump sum or installments, and by way of 
     advance or reimbursement, and, in the case of any grant, with 
     necessary adjustments on account of overpayments and 
     underpayments) as the USTR considers necessary or appropriate 
     to carry out the functions of the USTR or the Office.
       (b) Exception.--Notwithstanding any other provision of this 
     subtitle, the authority to enter into contracts or to make 
     payments under this subchapter shall be effective only to 
     such extent or in such amounts as are provided in advance in 
     appropriation Acts. This subsection does not apply with 
     respect to the authority granted under section 2349.

     SEC. 2348. USE OF FACILITIES.

       (a) Use by USTR.--With their consent, the USTR, with or 
     without reimbursement, may use the research, services, 
     equipment, and facilities of--
       (1) an individual,
       (2) any public or private nonprofit agency or organization, 
     including any agency or instrumentality of the United States 
     or of any State, the District of Columbia, the Commonwealth 
     of Puerto Rico, or any territory or possession of the United 
     States,
       (3) any political subdivision of any State, the District of 
     Columbia, the Commonwealth of Puerto Rico, or any territory 
     or possession of the United States, or
       (4) any foreign government,

     in carrying out any function of the USTR or the Office.
       (b) Use of USTR Facilities.--The USTR, under terms, at 
     rates, and for periods that the USTR considers to be in the 
     public interest, may permit the use by public and private 
     agencies, corporations, associations or other organizations, 
     or individuals, of any real property, or any facility, 
     structure or other improvement thereon, under the custody of 
     the USTR. The USTR may require permittees under this section 
     to maintain or recondition, at their own expense, the real 
     property, facilities, structures, and improvements used by 
     such permittees.

     SEC. 2349. GIFTS AND BEQUESTS.

       (a) In General.--The USTR is authorized to accept, hold, 
     administer, and utilize gifts and bequests of property, both 
     real and personal, for the purpose of aiding or facilitating 
     the work of the Office. Gifts and bequests of money and the 
     proceeds from sales of other property received as gifts or 
     bequests shall be deposited in the United States Treasury in 
     a separate fund and shall be disbursed on order of the USTR. 
     Property accepted pursuant to this subsection, and the 
     proceeds thereof, shall be used as nearly as possible in 
     accordance with the terms of the gift or bequest.
       (b) Tax Treatment.--For the purpose of Federal income, 
     estate, and gift taxes, and State taxes, property accepted 
     under subsection (a) shall be considered a gift or bequest to 
     or for the use of the United States.
       (c) Investment.--Upon the request of the USTR, the 
     Secretary of the Treasury may invest and reinvest in 
     securities of the United States or in securities guaranteed 
     as to principal and interest by the United States any moneys 
     contained in the fund provided for in subsection (a). Income 
     accruing from such securities, and from any other property 
     held by the USTR pursuant to subsection (a), shall be 
     deposited to the credit of the fund, and shall be disbursed 
     upon order of the USTR.

     SEC. 2350. WORKING CAPITAL FUND.

       (a) Establishment.--The USTR is authorized to establish for 
     the Office a working capital fund, to be available without 
     fiscal year limitation, for expenses necessary for the 
     maintenance and operation of such common administrative 
     services as the USTR shall find to be desirable in the 
     interest of economy and efficiency, including--
       (1) a central supply service for stationery and other 
     supplies and equipment for which adequate stocks may be 
     maintained to meet in whole or in part the requirements of 
     the Office and its components;
       (2) central messenger, mail, and telephone service and 
     other communications services;
       (3) office space and central services for document 
     reproduction and for graphics and visual aids;
       (4) a central library service; and
       (5) such other services as may be approved by the Director 
     of the Office of Management and Budget.
       (b) Operation of Fund.--The capital of the fund shall 
     consist of any appropriations made for the purpose of 
     providing working capital and the fair and reasonable value 
     of such stocks of supplies, equipment, and other assets and 
     inventories on order as the USTR may transfer to the fund, 
     less the related liabilities and unpaid obligations. The fund 
     shall be reimbursed in advance from available funds of 
     agencies and offices in the Office, or from other sources, 
     for supplies and services at rates which will approximate the 
     expense of operation, including the accrual of annual leave 
     and the depreciation of equipment. The fund shall also be 
     credited with receipts from sale or exchange of property and 
     receipts in payment for loss or damage to property owned by 
     the fund. There shall be covered into the United States 
     Treasury as miscellaneous receipts any surplus of the fund 
     (all assets, liabilities, and prior losses considered) above 
     the amounts transferred or appropriated to establish and 
     maintain the fund. There shall be transferred to the fund the 
     stocks of supplies, equipment, other assets, liabilities, and 
     unpaid obligations relating to those services which the USTR 
     determines will be performed.

[[Page H 11955]]


     SEC. 2351. SERVICE CHARGES.

       (a) Authority.--Notwithstanding any other provision of law, 
     the USTR may establish reasonable fees and commissions with 
     respect to applications, documents, awards, loans, grants, 
     research data, services, and assistance administered by the 
     Office, and the USTR may change and abolish such fees and 
     commissions. Before establishing, changing, or abolishing any 
     schedule of fees or commissions under this section, the USTR 
     may submit such schedule to the Congress.
       (b) Deposits.--The USTR is authorized to require a deposit 
     before the USTR provides any item, information, service, or 
     assistance for which a fee or commission is required under 
     this section.
       (c) Deposit of Moneys.--Moneys received under this section 
     shall be deposited in the Treasury in a special account for 
     use by the USTR and are authorized to be appropriated and 
     made available until expended.
       (d) Factors in Establishing Fees and Commissions.--In 
     establishing reasonable fees or commissions under this 
     section, the USTR may take into account--
       (1) the actual costs which will be incurred in providing 
     the items, information, services, or assistance concerned;
       (2) the efficiency of the Government in providing such 
     items, information, services, or assistance;
       (3) the portion of the cost that will be incurred in 
     providing such items, information, services, or assistance 
     which may be attributed to benefits for the general public 
     rather than exclusively for the person to whom the items, 
     information, services, or assistance is provided;
       (4) any public service which occurs through the provision 
     of such items, information, services, or assistance; and
       (5) such other factors as the USTR considers appropriate.
       (e) Refunds of Excess Payments.--In any case in which the 
     USTR determines that any person has made a payment which is 
     not required under this section or has made a payment which 
     is in excess of the amount required under this section, the 
     USTR, upon application or otherwise, may cause a refund to be 
     made from applicable funds.

     SEC. 2352. SEAL OF OFFICE.

       The USTR shall cause a seal of office to be made for the 
     Office of such design as the USTR shall approve. Judicial 
     notice shall be taken of such seal.

                     Subchapter E--Related Agencies

     SEC. 2361. INTERAGENCY TRADE ORGANIZATION.

       Section 242(a)(3) of the Trade Expansion Act of 1962 (19 
     U.S.C. 1872(a)(3)) is amended to read as follows:
       ``(3)(A) The interagency organization established under 
     subsection (a) shall be composed of--
       ``(i) the United States Trade Representative, who shall be 
     the chairperson,
       ``(ii) the Secretary of Agriculture,
       ``(iii) the Secretary of the Treasury,
       ``(iv) the Secretary of Labor,
       ``(v) the Secretary of State, and
       ``(vi) the representatives of such other departments and 
     agencies as the United States Trade Representative shall 
     designate.
       ``(B) The United States Trade Representative may invite 
     representatives from other agencies, as appropriate, to 
     attend particular meetings if subject matters of specific 
     functional interest to such agencies are under consideration. 
     It shall meet at such times and with respect to such matters 
     as the President or the chairperson shall direct.''.

     SEC. 2362. NATIONAL SECURITY COUNCIL.

       The fourth paragraph of section 101(a) of the National 
     Security Act of 1947 (50 U.S.C. 402(a)) is amended--
       (1) by redesignating clauses (5), (6), and (7) as clauses 
     (6), (7), and (8), respectively; and
       (2) by inserting after clause (4) the following new clause:
       ``(5) the United States Trade Representative;''.

     SEC. 2363. INTERNATIONAL MONETARY FUND.

       Section 3 of the Bretton Woods Agreement Act is amended by 
     adding at the end the following new subsection:
       ``(e) The United States executive director of the Fund 
     shall consult with the United States Trade Representative 
     with respect to matters under consideration by the Fund which 
     relate to trade.''.

                  Subchapter F--Conforming Amendments

     SEC. 2371. AMENDMENTS TO GENERAL PROVISIONS.

       (a) Inspector General.--The Inspector General Act of 1978 
     is amended--
       (1) in subsection 9(a)(1) by inserting after subparagraph 
     (W) the following:
       ``(X) of the United States Trade Representative, all 
     functions of the Inspector General of the Department of 
     Commerce and the Office of the Inspector General of the 
     Department of Commerce relating to the functions transferred 
     to the United States Trade Representative by section 2332 of 
     the Department of Commerce Dismantling Act; and''; and
       (2) in section 11--
       (A) in paragraph (1) by inserting ``the United States Trade 
     Representative;'' after ``the Attorney General;''; and
       (B) in paragraph (2) by inserting ``the Office of the 
     United States Trade Representative,'' after ``Treasury;''.
       (b) Amendment to the Trade Act of 1974.--(1) Chapter 4 of 
     title I of the Trade Act of 1974 is amended to read as 
     follows:

           ``CHAPTER 4--REPRESENTATION IN TRADE NEGOTIATIONS

     ``SEC. 141. FUNCTIONS OF THE UNITED STATES TRADE 
                   REPRESENTATIVE.

       ``The United States Trade Representative established under 
     section 2311 of the Department of Commerce Dismantling Act 
     shall--
       ``(1) be the chief representative of the United States for 
     each trade negotiation under this title or chapter 1 of title 
     III of this Act, or subtitle A of title I of the Omnibus 
     Trade and Competitiveness Act of 1988, or any other provision 
     of law enacted after the Department of Commerce Dismantling 
     Act;
       ``(2) report directly to the President and the Congress, 
     and be responsible to the President and the Congress for the 
     administration of trade agreements programs under this Act, 
     the Omnibus Trade and Competitiveness Act of 1988, the Trade 
     Expansion Act of 1962, section 350 of the Tariff Act of 1930, 
     and any other provision of law enacted after the Department 
     of Commerce Dismantling Act;
       ``(3) advise the President and the Congress with respect to 
     nontariff barriers to international trade, international 
     commodity agreements, and other matters which are related to 
     the trade agreements programs; and
       ``(4) be responsible for making reports to Congress with 
     respect to the matters set forth in paragraphs (1) and 
     (2).''.
       (2) The table of contents in the first section of the Trade 
     Act of 1974 is amended by striking the items relating to 
     chapter 4 and section 141 and inserting the following:

           ``Chapter 4--Representation in Trade Negotiations

``Sec. 141. Functions of the United States Trade Representative.''.

       (d) Foreign Service Personnel.--The Foreign Service Act of 
     1980 is amended by striking paragraph (3) of section 202(a) 
     (22 U.S.C. 3922(a)) and inserting the following:
       ``(3) The United States Trade Representative may utilize 
     the Foreign Service personnel system in accordance with this 
     Act--
       ``(A) with respect to the personnel performing functions--
       ``(i) which were transferred to the Department of Commerce 
     from the Department of State by Reorganization Plan No. 3 of 
     1979; and
       ``(ii) which were subsequently transferred to the United 
     States Trade Representative by section 2332 of the Department 
     of Commerce Dismantling Act; and
       ``(B) with respect to other personnel of the Office of 
     United States Trade Representative to the extent the 
     President determines to be necessary in order to enable the 
     Office of the United States Trade Representative to carry out 
     functions which require service abroad.''.
       (e) Chief Financial Officers.--Section 901(b)(1) of title 
     31, United States Code, is amended by adding at the end the 
     following:
       ``(Q) The Office of the United States Trade 
     Representative.''.

     SEC. 2372. REPEALS.

       Sections 1 and 2 of the Act of June 5, 1939 (15 U.S.C. 1502 
     and 1503; 53 Stat. 808), relating to the Under Secretary of 
     Commerce, are repealed.

     SEC. 2373. CONFORMING AMENDMENTS RELATING TO EXECUTIVE 
                   SCHEDULE POSITIONS.

       (a) Positions at Level I.--Section 5312 of title 5, United 
     States Code, is amended by amending the item relating to the 
     United States Trade Representative to read as follows:
       ``United States Trade Representative, Office of the United 
     States Trade Representative.''.
       (b) Positions at Level II.--Section 5313 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Deputy Administrator of the Office of the United States 
     Trade Representative.
       ``Deputy United States Trade Representatives, Office of the 
     United States Trade Representative (2).''.
       (c) Positions at Level III.--Section 5314 of title 5, 
     United States Code, is amended by adding at the end the 
     following:
       ``Assistant Administrators, Office of the United States 
     Trade Representative (3).
       ``Director General for Export Promotion, Office of the 
     United States Trade Representative.''.
       (d) Positions at Level IV.--Section 5315 of title 5, United 
     States Code, is amended--
       (1) by striking the item relating to the Assistant 
     Secretary of Commerce and Director General of the United 
     States and Foreign Commercial Service; and
       (2) by adding at the end the following:
       ``General Counsel, Office of the United States Trade 
     Representative.
       ``Inspector General, Office of the United States Trade 
     Representative.
       ``Chief Financial Officer, Office of the United States 
     Trade Representative.''.

                      Subchapter G--Miscellaneous

     SEC. 2381. EFFECTIVE DATE.

       (a) In General.--This subtitle shall take effect on the 
     effective date specified in section 2208(a), except that--
       (1) section 2336 shall take effect on the date of the 
     enactment of this Act; and
       (2) at any time after the date of the enactment of this Act 
     the officers provided for in subchapter B may be nominated 
     and appointed, as provided in such subchapter.
       (b) Interim Compensation and Expenses.--Funds available to 
     the Department of Commerce or the Office of the United States 
     Trade Representative (or any official or component thereof), 
     with respect to the functions transferred by this subtitle, 
     may be used, with approval of the Director of the Office of 
     Management and Budget, to pay the compensation and expenses 
     of an officer appointed under subsection (a) who will carry 

[[Page H 11956]]
     out such functions until funds for that purpose are otherwise 
     available.

     SEC. 2382. INTERIM APPOINTMENTS.

       (a) In General.--If one or more officers required by this 
     subtitle to be appointed by and with the advice and consent 
     of the Senate have not entered upon office on the effective 
     date of this subtitle and notwithstanding any other provision 
     of law, the President may designate any officer who was 
     appointed by and with the advice and consent of the Senate, 
     and who was such an officer on the day before the effective 
     date of this subtitle, to act in the office until it is 
     filled as provided by this subtitle.
       (b) Compensation.--Any officer acting in an office pursuant 
     to subsection (a) shall receive compensation at the rate 
     prescribed by this subtitle for such office.

     SEC. 2383. FUNDING REDUCTIONS RESULTING FROM REORGANIZATION.

       (a) Funding Reductions.--Notwithstanding the transfer of 
     functions under this subtitle, and except as provided in 
     subsection (b), the total amount appropriated by the United 
     States in performing all functions vested in the USTR and the 
     Office pursuant to this subtitle shall not exceed--
       (1) for the first fiscal year that begins after the 
     abolishment date specified in section 2101(c), 75 percent of 
     the total amount appropriated in fiscal year 1995 for the 
     performance of all such functions; and
       (2) for the second fiscal year that begins after the 
     abolishment date specified in section 2101(c) and for each 
     fiscal year thereafter, 65 percent of the total amount 
     appropriated in fiscal year 1995 for the performance of all 
     such functions.
       (b) Exception.--Subsection (a) shall not apply to 
     obligations or expenditures incurred as a direct consequence 
     of the termination, transfer, or other disposition of 
     functions described in subsection (a) pursuant to this title.
       (c) Rule of Construction.--This section shall take 
     precedence over any other provision of law unless such 
     provision explicitly refers to this section and makes an 
     exception to it.
       (d) Responsibility of USTR.--The USTR, in consultation with 
     the Director of the Office of Management and Budget, shall 
     make such modifications in programs as are necessary to carry 
     out the reductions in appropriations set forth in paragraph 
     (1) and (2) of subsection (a).
       (e) Responsibilities of the Director of the Office of 
     Management and Budget.--The Director of the Office of 
     Management and Budget shall include in each report under 
     sections 2105(a) and (b) a description of actions taken to 
     comply with the requirements of this section.
          Subtitle D--Patent and Trademark Office Corporation

     SEC. 2401. SHORT TITLE.

       This subtitle may be cited as the ``Patent and Trademark 
     Office Corporation Act of 1995''.

                 CHAPTER 1--PATENT AND TRADEMARK OFFICE

     SEC. 2411. ESTABLISHMENT OF PATENT AND TRADEMARK OFFICE AS A 
                   CORPORATION.

       Section 1 of title 35, United States Code, is amended to 
     read as follows:

     ``Sec. 1. Establishment

       ``(a) Establishment.--The Patent and Trademark Office is 
     established as a wholly owned Government corporation subject 
     to chapter 91 of title 31, except as otherwise provided in 
     this title.
       ``(b) Offices.--The Patent and Trademark Office shall 
     maintain an office in the District of Columbia, or the 
     metropolitan area thereof, for the service of process and 
     papers and shall be deemed, for purposes of venue in civil 
     actions, to be a resident of the district in which its 
     principal office is located. The Patent and Trademark Office 
     may establish offices in such other places as it considers 
     necessary or appropriate in the conduct of its business.
       ``(c) Reference.--For purposes of this title, the Patent 
     and Trademark Office shall also be referred to as the 
     `Office'.''.

     SEC. 2412. POWERS AND DUTIES.

       Section 2 of title 35, United States Code, is amended to 
     read as follows:

     ``Sec. 2. Powers and Duties

       ``(a) In General.--The Patent and Trademark Office shall be 
     responsible for--
       ``(1) the granting and issuing of patents and the 
     registration of trademarks;
       ``(2) conducting studies, programs, or exchanges of items 
     or services regarding domestic and international patent and 
     trademark law or the administration of the Office, including 
     programs to recognize, identify, assess, and forecast the 
     technology of patented inventions and their utility to 
     industry;
       ``(3) authorizing or conducting studies and programs 
     cooperatively with foreign patent and trademark offices and 
     international organizations, in connection with the granting 
     and issuing of patents and the registration of trademarks; 
     and
       ``(4) disseminating to the public information with respect 
     to patents and trademarks.
       ``(b) Specific Powers.--The Office--
       ``(1) shall have perpetual succession;
       ``(2) shall adopt and use a corporate seal, which shall be 
     judicially noticed and with which letters patent, 
     certificates of trademark registrations, and papers issued by 
     the Office shall be authenticated;
       ``(3) may sue and be sued in its corporate name and be 
     represented by its own attorneys in all judicial and 
     administrative proceedings, subject to the provisions of 
     section 8 of this title;
       ``(4) may indemnify the Commissioner of Patents and 
     Trademarks, and other officers, attorneys, agents, and 
     employees (including members of the Management Advisory Board 
     established in section 5) of the Office for liabilities and 
     expenses incurred within the scope of their employment;
       ``(5) may adopt, amend, and repeal bylaws, rules, and 
     regulations, governing the manner in which its business will 
     be conducted and the powers granted to it by law will be 
     exercised;
       ``(6) may acquire, construct, purchase, lease, hold, 
     manage, operate, improve, alter, and renovate any real, 
     personal, or mixed property, or any interest therein, as it 
     considers necessary to carry out its functions;
       ``(7)(A) may make such purchases, contracts for the 
     construction, maintenance, or management and operation of 
     facilities, and contracts for supplies or services, without 
     regard to section 111 of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 759); and
       ``(B) may enter into and perform such purchases and 
     contracts for printing services, including the process of 
     composition, platemaking, presswork, silk screen processes, 
     binding, microform, and the products of such processes, as it 
     considers necessary to carry out the functions of the Office, 
     without regard to sections 501 through 517 and 1101 through 
     1123 of title 44;
       ``(8) may use, with their consent, services, equipment, 
     personnel, and facilities of other departments, agencies, and 
     instrumentalities of the Federal Government, on a 
     reimbursable basis, and cooperate with such other 
     departments, agencies, and instrumentalities in the 
     establishment and use of services, equipment, and facilities 
     of the Office;
       ``(9) may obtain from the Administrator of General Services 
     such services as the Administrator is authorized to provide 
     to other agencies of the United States, on the same basis as 
     those services are provided to other agencies of the United 
     States;
       ``(10) may use, with the consent of the United States and 
     the agency, government, or international organization 
     concerned, the services, records, facilities, or personnel of 
     any State or local government agency or instrumentality or 
     foreign government or international organization to perform 
     functions on its behalf;
       ``(11) may determine the character of and the necessity for 
     its obligations and expenditures and the manner in which they 
     shall be incurred, allowed, and paid, subject to the 
     provisions of this title and the Act of July 5, 1946 
     (commonly referred to as the `Trademark Act of 1946');
       ``(12) may retain and use all of its revenues and receipts, 
     including revenues from the sale, lease, or disposal of any 
     real, personal, or mixed property, or any interest therein, 
     of the Office, in carrying out the functions of the Office, 
     including for research and development and capital 
     investment, subject to the provisions of section 10101 of the 
     Omnibus Budget Reconciliation Act of 1990 (35 U.S.C. 41 
     note);
       ``(13) shall have the priority of the United States with 
     respect to the payment of debts from bankrupt, insolvent, and 
     decedents' estates;
       ``(14) may accept monetary gifts or donations of services, 
     or of real, personal, or mixed property, in order to carry 
     out the functions of the Office;
       ``(15) may execute, in accordance with its bylaws, rules, 
     and regulations, all instruments necessary and appropriate in 
     the exercise of any of its powers;
       ``(16) may provide for liability insurance and insurance 
     against any loss in connection with its property, other 
     assets, or operations either by contract or by self-
     insurance; and
       ``(17) shall pay any settlement or judgment entered against 
     it from the funds of the Office and not from amounts 
     available under section 1304 of title 31.''.

     SEC. 2413. ORGANIZATION AND MANAGEMENT.

       Section 3 of title 35, United States Code, is amended to 
     read as follows:

     ``Sec. 3. Officers and employees

       ``(a) Commissioner.--
       ``(1) In general.--The management of the Patent and 
     Trademark Office shall be vested in a Commissioner of Patents 
     and Trademarks (hereafter in this title referred to as the 
     `Commissioner'), who shall be a citizen of the United States 
     and who shall be appointed by the President, by and with the 
     advice and consent of the Senate. The Commissioner shall be a 
     person who, by reason of professional background and 
     experience in patent and trademark law, is especially 
     qualified to manage the Office.
       ``(2) Duties.--
       ``(A) In general.--The Commissioner shall be responsible 
     for the management and direction of the Office, including the 
     issuance of patents and the registration of trademarks.
       ``(B) Advising the president.--The Commissioner shall 
     advise the President of all activities of the Patent and 
     Trademark Office undertaken in response to obligations of the 
     United States under treaties and executive agreements, or 
     which relate to cooperative programs with those authorities 
     of foreign governments that are responsible for granting 
     patents or registering trademarks. The Commissioner shall 
     also recommend to the President changes in law or policy 
     which may improve the ability of United States citizens to 
     secure and enforce patent rights 

[[Page H 11957]]
     or trademark rights in the United States or in foreign countries.
       ``(C) Consulting with the management advisory board.--The 
     Commissioner shall consult with the Management Advisory Board 
     established in section 5 on a regular basis on matters 
     relating to the operation of the Patent and Trademark Office, 
     and shall consult with the Board before submitting budgetary 
     proposals to the Office of Management and Budget or changing 
     or proposing to change patent or trademark user fees or 
     patent or trademark regulations.
       ``(D) Security clearances.--The Commissioner, in 
     consultation with the Director of the Office of Personnel 
     Management, shall maintain a program for identifying national 
     security positions and providing for appropriate security 
     clearances.
       ``(3) Term.--The Commissioner shall serve a term of 5 
     years, and may continue to serve after the expiration of the 
     Commissioner's term until a successor is appointed and 
     assumes office. The Commissioner may be reappointed to 
     subsequent terms.
       ``(4) Oath.--The Commissioner shall, before taking office, 
     take an oath to discharge faithfully the duties of the 
     Office.
       ``(5) Compensation.--The Commissioner shall receive 
     compensation at the rate of pay in effect for Level III of 
     the Executive Schedule under section 5314 of title 5.
       ``(6) Removal.--The Commissioner may be removed from office 
     by the President only for cause.
       ``(7) Designee of commissioner.--The Commissioner shall 
     designate an officer of the Office who shall be vested with 
     the authority to act in the capacity of the Commissioner in 
     the event of the absence or incapacity of the Commissioner.
       ``(b) Officers and Employees of the Office.--
       ``(1) Deputy commissioners.--The Commissioner shall appoint 
     a Deputy Commissioner for Patents and a Deputy Commissioner 
     for Trademarks for terms that shall expire on the date on 
     which the Commissioner's term expires. The Deputy 
     Commissioner for Patents shall be a person with demonstrated 
     experience in patent law and the Deputy Commissioner for 
     Trademarks shall be a person with demonstrated experience in 
     trademark law. The Deputy Commissioner for Patents and the 
     Deputy Commissioner for Trademarks shall be the principal 
     policy advisors to the Commissioner on all aspects of the 
     activities of the Office that affect the administration of 
     patent and trademark operations, respectively.
       ``(2) Other officers and employees.--The Commissioner 
     shall--
       ``(A) appoint an Inspector General and such other officers, 
     employees (including attorneys), and agents of the Office as 
     the Commissioner considers necessary to carry out its 
     functions;
       ``(B) fix the compensation of such officers and employees; 
     and
       ``(C) define the authority and duties of such officers and 
     employees and delegate to them such of the powers vested in 
     the Office as the Commissioner may determine.

     The Office shall not be subject to any administratively or 
     statutorily imposed limitation on positions or personnel, and 
     no positions or personnel of the Office shall be taken into 
     account for purposes of applying any such limitation, except 
     to the extent otherwise specifically provided by statute with 
     respect to the Office.
       ``(c) Limits on Compensation.--Except as otherwise provided 
     in this title or any other provision of law, the basic pay of 
     an officer or employee of the Office for any calendar year 
     may not exceed the annual rate of basic pay in effect for 
     level IV of the Executive Schedule under section 5315 of 
     title 5. The Commissioner shall by regulation establish a 
     limitation on the total compensation payable to officers or 
     employees of the Office, which may not exceed the annual rate 
     of basic pay in effect for level I of the Executive Schedule 
     under section 5312 of title 5.
       ``(d) Inapplicability of Title 5 Generally.--Except as 
     otherwise provided in this section, officers and employees of 
     the Office shall not be subject to the provisions of title 5 
     relating to Federal employees.
       ``(e) Continued Applicability of Certain Provision of Title 
     5.--The following provisions of title 5 shall apply to the 
     Office and its officers and employees:
       ``(1) Section 3110 (relating to employment of relatives; 
     restrictions).
       ``(2) Subchapter II of chapter 55 (relating to withholding 
     pay).
       ``(3) Subchapter II of chapter 73 (relating to employment 
     limitations).
       ``(f) Provisions of Title 5 Relating to Certain Benefits.--
       ``(1) Retirement.--(A)(i) Any individual who becomes an 
     officer or employee of the Office pursuant to subsection (h) 
     shall, if such individual has at least 3 years of creditable 
     service (within the meaning of section 8332 or 8411 of title 
     5) as of the effective date of the Patent and Trademark 
     Office Corporation Act of 1995, remain subject to subchapter 
     III of chapter 83 or chapter 84 of such title, as the case 
     may be, so long as such individual continues to hold an 
     office or position in or under the Office without a break in 
     service.
       ``(ii)(I) Except as provided in subclause (II), with 
     respect to an individual described in clause (i), the Office 
     shall make the appropriate withholding from pay and shall pay 
     the contributions required of an employing agency into the 
     Civil Service Retirement and Disability Fund and, if 
     applicable, the Thrift Savings Fund in accordance with 
     applicable provisions of subchapter III of chapter 83 or 
     chapter 84 of title 5, as the case may be.
       ``(II) In the case of an officer or employee who remains 
     subject to subchapter III of chapter 83 of such title by 
     virtue of this subparagraph, the Office shall, instead of the 
     amount which would otherwise be required under the second 
     sentence of section 8334(a)(1) of title 5, contribute an 
     amount equal to the normal-cost percentage (determined with 
     respect to officers and employees of the Office using dynamic 
     assumptions, as defined by section 8401(9) of such title) of 
     the individual's basic pay, minus the amount required to be 
     withheld from such pay under such section 8334(a)(1).
       ``(B)(i) Notwithstanding subsection (d), the provisions of 
     subchapter III of chapter 83 or chapter 84 of title 5 (as 
     applicable) which relate to disability shall be considered to 
     remain in effect, with respect to an individual who becomes 
     an officer or employee of the Office pursuant to 
     subsection (h), until the end of the 2-year period 
     beginning on the effective date of the Patent and 
     Trademark Office Corporation Act of 1995 or, if earlier, 
     until such individual satisfies the prerequisites for 
     coverage under any program offered by the Office to 
     replace the disability retirement program under chapter 83 
     or 84 of title 5.
       ``(ii) This clause applies with respect to any officer or 
     employee of the Office who is receiving disability coverage 
     under this subparagraph and has completed the service 
     requirement specified in the first sentence of section 
     8337(a) or 8451(a)(1)(A) of title 5 (as applicable), but who 
     is not described in subparagraph (A)(i). In the case of any 
     individual to whom this clause applies, the Office shall pay 
     into the Civil Service Retirement and Disability Fund an 
     amount equal to that portion of the normal-cost percentage 
     (determined in the same manner as under subparagraph 
     (A)(ii)(II)) of the basic pay of such individual (for service 
     performed during the period during which such individual is 
     receiving such coverage) allocable to such coverage. Any 
     amounts payable under this clause shall be paid at such time 
     and in such manner as mutually agreed to by the Office and 
     the Office of Personnel Management, and shall be in lieu of 
     any individual or agency contributions otherwise required.
       ``(2) Health benefits.--(A) Officers and employees of the 
     Office shall not become ineligible to participate in the 
     health benefits program under chapter 89 of title 5 by reason 
     of subsection (d) until the effective date of elections made 
     during the first election period (under section 8905(f) of 
     title 5) beginning after the end of the 2-year period 
     beginning on the effective date of the Patent and Trademark 
     Office Corporation Act of 1995.
       ``(B)(i) With respect to any individual who becomes an 
     officer or employee of the Office pursuant to subsection (h), 
     the eligibility of such individual to participate in such 
     program as an annuitant (or of any other person to 
     participate in such program as an annuitant based on the 
     death of such individual) shall be determined disregarding 
     the requirements of section 8905(b) of title 5. The preceding 
     sentence shall not apply if the individual ceases to be an 
     officer or employee of the Office for any period of time 
     after becoming an officer or employee of the Office pursuant 
     to subsection (h) and before separation.
       ``(ii) The Government contributions authorized by section 
     8906 for health benefits for anyone participating in the 
     health benefits program pursuant to this subparagraph shall 
     be made by the Office in the same manner as provided under 
     section 8906(g)(2) of title 5 with respect to the United 
     States Postal Service for individuals associated therewith.
       ``(iii) For purposes of this subparagraph, the term 
     `annuitant' has the meaning given such term by section 
     8901(3) of title 5.
       ``(3) Life insurance.--(A) Officers and employees of the 
     Office shall not become ineligible to participate in the life 
     insurance program under chapter 87 of title 5 by reason of 
     subsection (d) until the first day after the end of the 2-
     year period beginning on the effective date of the Patent and 
     Trademark Office Corporation Act of 1995.
       ``(B)(i) Eligibility for life insurance coverage after 
     retirement or while in receipt of compensation under 
     subchapter I of chapter 81 of title 5 shall be determined, in 
     the case of any individual who becomes an officer or employee 
     of the Office pursuant to subsection (h), without regard to 
     the requirements of section 8706(b) (1) or (2), but subject 
     to the condition specified in the last sentence of paragraph 
     (2)(B)(i) of this subsection.
       ``(ii) Government contributions under section 8708(d) on 
     behalf of any such individual shall be made by the Office in 
     the same manner as provided under paragraph (3) thereof with 
     respect to the United States Postal Service for individuals 
     associated therewith.
       ``(4) Employees' compensation fund.--The Office shall 
     remain responsible for reimbursing the Employees' 
     Compensation Fund, pursuant to section 8147 of title 5, for 
     compensation paid or payable after the effective date of the 
     Patent and Trademark Office Corporation Act of 1995 in 
     accordance with chapter 81 of title 5 with regard to any 
     injury, disability, or death due to events arising before 
     such date, whether or not a claim has been filed or is final 
     on such date.
       ``(5) Requirement that the office offer certain minimum 
     number of life and health insurance policies.--The Office 

[[Page H 11958]]
     shall offer at least 1 life insurance policy and at least 3 health 
     insurance policies to its officers and employees, comparable 
     to existing Federal benefits, beginning on the first day 
     after the end of the 2-year period beginning on the effective 
     date of the Patent and Trademark Office Corporation Act of 
     1995.
       ``(g) Labor-Management Relations.--
       ``(1) Labor relations and employee relations programs.--The 
     Office shall develop labor relations and employee relations 
     programs with the objective of improving productivity and 
     efficiency, incorporating the following principles:
       ``(A) Such programs shall be consistent with the merit 
     principles in section 2301(b) of title 5.
       ``(B) Such programs shall provide veterans preference 
     protections equivalent to those established by sections 2801, 
     3308-3318, and 3320 of title 5.
       ``(C)(i) In order to maximize individual freedom of choice 
     in the pursuit of employment and to encourage an economic 
     climate conducive to economic growth, the right to work shall 
     not be subject to undue restraint or coercion. The right to 
     work shall not be infringed or restricted in any way based on 
     membership in, affiliation with, or financial support of a 
     labor organization.
       ``(ii) No person shall be required, as a condition of 
     employment or continuation of employment:
       ``(I) To resign or refrain from voluntary membership in, 
     voluntary affiliation with, or voluntary financial support of 
     a labor organization.
       ``(II) To become or remain a member of a labor 
     organization.
       ``(III) To pay any dues, fees, assessments, or other 
     charges of any kind or amount to a labor organization.
       ``(IV) To pay to any charity or other third party, in lieu 
     of such payments, any amount equivalent to or a pro-rata 
     portion of dues, fees, assessments, or other charges 
     regularly required of members of a labor organization.
       ``(V) To be recommended, approved, referred, or cleared by 
     or through a labor organization.
       ``(iii) This subparagraph shall not apply to a person 
     described in section 7103(a)(2)(v) of title 5 or a 
     `supervisor', `management official', or `confidential 
     employee' as those terms are defined in 7103(a)(10), (11), 
     and (13) of such title.
       ``(iv) Any labor organization recognized by the Office as 
     the exclusive representative of a unit of employees of the 
     Office shall represent the interests of all employees in that 
     unit without discrimination and without regard to labor 
     organization membership.
       ``(2) Adoption of existing labor agreements.--The Office 
     shall adopt all labor agreements which are in effect, as of 
     the day before the effective date of the Patent and Trademark 
     Office Corporation Act of 1995, with respect to such Office 
     (as then in effect). Each such agreement shall remain in 
     effect for the 2-year period commencing on such date, unless 
     the agreement provides for a shorter duration or the parties 
     agree otherwise before such period ends.
       ``(h) Carryover of Personnel.--
       ``(1) From pto.--Effective as of the effective date of the 
     Patent and Trademark Office Corporation Act of 1995, all 
     officers and employees of the Patent and Trademark Office on 
     the day before such effective date shall become officers and 
     employees of the Office, without a break in service.
       ``(2) Other personnel.--Any individual who, on the day 
     before the effective date of the Patent and Trademark Office 
     Corporation Act of 1995, is an officer or employee of the 
     Department of Commerce (other than an officer or employee 
     under paragraph (1)) shall be transferred to the Office if--
       ``(A) such individual serves in a position for which a 
     major function is the performance of work reimbursed by the 
     Patent and Trademark Office, as determined by the Secretary 
     of Commerce;
       ``(B) such individual serves in a position that performed 
     work in support of the Patent and Trademark Office during at 
     least half of the incumbent's work time, as determined by the 
     Secretary of Commerce; or
       ``(C) such transfer would be in the interest of the Office, 
     as determined by the Secretary of Commerce in consultation 
     with the Commissioner of Patents and Trademarks.

     Any transfer under this paragraph shall be effective as of 
     the same effective date as referred to in paragraph (1), and 
     shall be made without a break in service.
       ``(3) Accumulated leave.--The amount of sick and annual 
     leave and compensatory time accumulated under title 5 before 
     the effective date described in paragraph (1), by officers or 
     employees of the Patent and Trademark Office who so become 
     officers or employees of the Office, are obligations of the 
     Office.
       ``(4) Termination rights.--Any employee referred to in 
     paragraph (1) or (2) of this subsection whose employment with 
     the Office is terminated during the 2-year period beginning 
     on the effective date of the Patent and Trademark Office 
     Corporation Act of 1995 shall be entitled to rights and 
     benefits, to be afforded by the Office, similar to those such 
     employee would have had under Federal law if termination had 
     occurred immediately before such date. An employee who would 
     have been entitled to appeal any such termination to the 
     Merit Systems Protection Board, if such termination had 
     occurred immediately before such effective date, may appeal 
     any such termination occurring within this 2-year period to 
     the Board under such procedures as it may prescribe.
       ``(5) Continuation in office of certain officers.--(A) The 
     individual serving as the Commissioner of Patents and 
     Trademarks on the day before the effective date of the Patent 
     and Trademark Office Corporation Act of 1995 may serve as the 
     Commissioner until the earlier of 1 year after the effective 
     date of that Act or the date on which a Commissioner is 
     appointed under subsection (a).
       ``(B) The individual serving as the Assistant Commissioner 
     for Patents on the day before the effective date of the 
     Patent and Trademark Office Corporation Act of 1995 may serve 
     as the Deputy Commissioner for Patents until the earlier of 1 
     year after the effective date of that Act or the date on 
     which a Deputy Commissioner for Patents is appointed under 
     subsection (b).
       ``(C) The individual serving as the Assistant Commissioner 
     for Trademarks on the day before the effective date of the 
     Patent and Trademark Office Corporation Act of 1995 may serve 
     as the Deputy Commissioner for Trademarks until the earlier 
     of 1 year after the effective date of that Act or the date on 
     which a Deputy Commissioner for Trademarks is appointed under 
     subsection (b).
       ``(i) Competitive Status.--For purposes of appointment to a 
     position in the competitive service for which an officer or 
     employee of the Office is qualified, such officer or employee 
     shall not forfeit any competitive status, acquired by such 
     officer or employee before the effective date of the 
     Patent and Trademark Office Corporation Act of 1995, by 
     reason of becoming an officer or employee of the Office 
     pursuant to subsection (h).
       ``(j) Savings Provisions.--All orders, determinations, 
     rules, and regulations regarding compensation and benefits 
     and other terms and conditions of employment, in effect for 
     the Office and its officers and employees immediately before 
     the effective date of the Patent and Trademark Office 
     Corporation Act of 1995, shall continue in effect with 
     respect to the Office and its officers and employees until 
     modified, superseded, or set aside by the Office or a court 
     of appropriate jurisdiction or by operation of law.''.

      SEC. 2414. MANAGEMENT ADVISORY BOARD.

       Chapter 1 of part I of title 35, United States Code, is 
     amended by inserting after section 4 the following:

     ``Sec. 5. Patent and Trademark Office Management Advisory 
       Board

       ``(a) Establishment of Management Advisory Board.--
       ``(1) Appointment.--The Patent and Trademark Office shall 
     have a Management Advisory Board (hereafter in this title 
     referred to as the `Board') of 12 members, 4 of whom shall be 
     appointed by the President, 4 of whom shall be appointed by 
     the Speaker of the House of Representatives, and 4 of whom 
     shall be appointed by the President pro tempore of the 
     Senate. Not more than 3 of the 4 members appointed by each 
     appointing authority shall be members of the same political 
     party.
       ``(2) Terms.--Members of the Board shall be appointed for a 
     term of 4 years each, except that of the members first 
     appointed by each appointing authority, 1 shall be for a term 
     of 1 year, 1 shall be for a term of 2 years, and 1 shall be 
     for a term of 3 years. No member may serve more than 1 term.
       ``(3) Chair.--The President shall designate the chair of 
     the Board, whose term as chair shall be for 3 years.
       ``(4) Timing of appointments.--Initial appointments to the 
     Board shall be made within 3 months after the effective date 
     of the Patent and Trademark Office Corporation Act of 1995, 
     and vacancies shall be filled within 3 months after they 
     occur.
       ``(5) Vacancies.--Vacancies shall be filled in the manner 
     in which the original appointment was made under this 
     subsection. Members appointed to fill a vacancy occurring 
     before the expiration of the term for which the member's 
     predecessor was appointed shall be appointed only for the 
     remainder of that term. A member may serve after the 
     expiration of that member's term until a successor is 
     appointed.
       ``(b) Basis for Appointments.--Members of the Board shall 
     be citizens of the United States who shall be chosen so as to 
     represent the interests of diverse users of the Patent and 
     Trademark Office, and shall include individuals with 
     substantial background and achievement in corporate finance 
     and management.
       ``(c) Applicability of Certain Ethics Laws.--Members of the 
     Board shall be special Government employees within the 
     meaning of section 202 of title 18.
       ``(d) Meetings.--The Board shall meet at the call of the 
     chair to consider an agenda set by the chair.
       ``(e) Duties.--The Board shall--
       ``(1) review the policies, goals, performance, budget, and 
     user fees of the Patent and Trademark Office, and advise the 
     Commissioner on these matters; and
       ``(2) within 60 days after the end of each fiscal year, 
     prepare an annual report on the matters referred to in 
     paragraph (1), transmit the report to the President and the 
     Committees on the Judiciary of the Senate and the House of 
     Representatives, and publish the report in the Patent and 
     Trademark Office Official Gazette.
       ``(f) Staff.--The Board shall employ a staff of not more 
     than 10 members and shall procure support services for the 
     staff adequate to enable the Board to carry out its 
     functions, using funds available to the Commissioner under 
     section 42 of this title. The 

[[Page H 11959]]
     Board shall ensure that members of the staff, other than clerical 
     staff, are especially qualified in the areas of patents, 
     trademarks, or management of public agencies. Persons 
     employed by the Board shall receive compensation as 
     determined by the Board, which may not exceed the limitations 
     set forth in section 3(c) of this title, shall serve in 
     accordance with terms and conditions of employment 
     established by the Board, and shall be subject solely to the 
     direction of the Board, notwithstanding any other provision 
     of law.
       ``(g) Compensation.--Members of the Board shall be 
     compensated for each day (including travel time) during which 
     they are attending meetings or conferences of the Board or 
     otherwise engaged in the business of the Board, at the rate 
     which is the daily equivalent of the annual rate of basic pay 
     in effect for level III of the Executive Schedule under 
     section 5314 of title 5, and while away from their homes or 
     regular places of business they may be allowed travel 
     expenses, including per diem in lieu of subsistence, as 
     authorized by section 5703 of title 5.
       ``(h) Access to Information.--Members of the Board shall be 
     provided access to records and information in the Patent and 
     Trademark Office, except for personnel or other privileged 
     information and information concerning patent applications 
     required to be kept in confidence by section 122 of this 
     title.''.

      SEC. 2415. INDEPENDENCE FROM DEPARTMENT OF COMMERCE.

       (a) Duties of Commissioner.--Section 6 of title 35, United 
     States Code, is amended--
       (1) by striking ``, under the direction of the Secretary of 
     Commerce,'' each place it appears; and
       (2) by striking ``, subject to the approval of the 
     Secretary of Commerce,''.
       (b) Regulations for Agents and Attorneys.--Section 31 of 
     title 35, United States Code, is amended by striking ``, 
     subject to the approval of the Secretary of Commerce,''.

     SEC. 2416. TRADEMARK TRIAL AND APPEAL BOARD.

       Section 17 of the Act of July 5, 1946 (commonly referred to 
     as the ``Trademark Act of 1946'') (15 U.S.C. 1067) is amended 
     to read as follows:
       ``Sec. 17. (a) In every case of interference, opposition to 
     registration, application to register as a lawful concurrent 
     user, or application to cancel the registration of a mark, 
     the Commissioner shall give notice to all parties and shall 
     direct a Trademark Trial and Appeal Board to determine and 
     decide the respective rights of registration.
       ``(b) The Trademark Trial and Appeal Board shall include 
     the Commissioner, the Deputy Commissioner for Patents, the 
     Deputy Commissioner for Trademarks, and members competent in 
     trademark law who are appointed by the Commissioner.''.

     SEC. 2417. BOARD OF PATENT APPEALS AND INTERFERENCES.

       Section 7 of title 35, United States Code, is amended to 
     read as follows:

     ``Sec. 7. Board of Patent Appeals and Interferences

       ``(a) Establishment and Composition.--There shall be in the 
     Patent and Trademark Office a Board of Patent Appeals and 
     Interferences. The Commissioner, the Deputy Commissioner for 
     Patents, the Deputy Commissioner for Trademarks, and the 
     examiners-in-chief shall constitute the Board. The examiners-
     in-chief shall be persons of competent legal knowledge and 
     scientific ability.
       ``(b) Duties.--The Board of Patent Appeals and 
     Interferences shall, on written appeal of an applicant, 
     review adverse decisions of examiners upon applications for 
     patents and shall determine priority and patentability of 
     invention in interferences declared under section 135(a) of 
     this title. Each appeal and interference shall be heard by at 
     least 3 members of the Board, who shall be designated by the 
     Commissioner. Only the Board of Patent Appeals and 
     Interferences may grant rehearings.''.

     SEC. 2418. SUITS BY AND AGAINST THE CORPORATION.

       Chapter 1 of part I of title 35, United States Code, is 
     amended--
       (1) by redesignating sections 8 through 14 as sections 9 
     through 15; and
       (2) by inserting after section 7 the following new section:

     ``Sec. 8. Suits by and against the Corporation

       ``(a) In General.--
       ``(1) Actions under united states law.--Any civil action or 
     proceeding to which the Patent and Trademark Office is a 
     party is deemed to arise under the laws of the United States. 
     The Federal courts shall have exclusive jurisdiction over all 
     civil actions by or against the Office.
       ``(2) Contract claims.--Any action or proceeding against 
     the Office in which any claim is cognizable under the 
     Contract Disputes Act of 1978 (41 U.S.C. 601 and following) 
     shall be subject to that Act. For purposes of that Act, the 
     Commissioner shall be deemed to be the agency head with 
     respect to contract claims arising with respect to the 
     Office. Any other action or proceeding against the Office 
     founded upon contract may be brought in an appropriate 
     district court, notwithstanding any provision of title 28.
       ``(3) Tort claims.--(A) Any action or proceeding against 
     the Office in which any claim is cognizable under the 
     provisions of section 1346(b) and chapter 171 of title 28, 
     shall be governed by those provisions.
       ``(B) Any other action or proceeding against the Office 
     founded upon tort may be brought in an appropriate district 
     court without regard to the provisions of section 1346(b) and 
     chapter 171 of title 28.
       ``(4) Prohibition on attachment, liens, etc.--No 
     attachment, garnishment, lien, or similar process, 
     intermediate or final, in law or equity, may be issued 
     against property of the Office.
       ``(5) Substitution of office as party.--The Office shall be 
     substituted as defendant in any civil action or proceeding 
     against an officer or employee of the Office, if the Office 
     determines that the officer or employee was acting within the 
     scope of his or her employment with the Office. If the Office 
     refuses to certify scope of employment, the officer or 
     employee may at any time before trial petition the court to 
     find and certify that the officer or employee was acting 
     within the scope of his or her employment. Upon certification 
     by the court, the Office shall be substituted as the party 
     defendant. A copy of the petition shall be served upon the 
     Office. In any such civil action or proceeding to which 
     paragraph (3)(A) applies, the provisions of section 1346(b) 
     and chapter 171 of title 28 shall apply in lieu of this 
     paragraph.
       ``(b) Relationship With Justice Department.--
       ``(1) Exercise by office of attorney general's 
     authorities.--Except as provided in this section, with 
     respect to any action or proceeding in which the Office is a 
     party or an officer or employee thereof is a party in his or 
     her official capacity, the Office, officer, or employee may 
     exercise, without prior authorization from the Attorney 
     General, the authorities and duties that otherwise would be 
     exercised by the Attorney General on behalf of the Office, 
     officer, or employee under title 28 and other laws.
       ``(2) Appearances by attorney general.--Notwithstanding 
     paragraph (1), at any time the Attorney General may, in any 
     action or proceeding described in paragraph (1), file an 
     appearance on behalf of the Office or the officer or employee 
     involved, without the consent of the Office or the officer or 
     employee. Upon such filing, the Attorney General shall 
     represent the Office or such officer or employee with 
     exclusive authority in the conduct, settlement, or compromise 
     of that action or proceeding.
       ``(3) Consultations with and assistance by attorney 
     general.--The Office may consult with the Attorney General 
     concerning any legal matter, and the Attorney General shall 
     provide advice and assistance to the Office, including 
     representing the Office in litigation, if requested by the 
     Office.
       ``(4) Representation before supreme court.--The Attorney 
     General shall represent the Office in all cases before the 
     United States Supreme Court.
       ``(5) Qualifications of attorneys.--An attorney admitted to 
     practice to the bar of the highest court of at least one 
     State in the United States or the District of Columbia and 
     employed by the Office may represent the Office in any legal 
     proceeding in which the Office or an officer or employee of 
     the Office is a party or interested, regardless of whether 
     the attorney is a resident of the jurisdiction in which the 
     proceeding is held and notwithstanding any other 
     prerequisites of qualification or appearance required by the 
     court or administrative body before which the proceeding is 
     conducted.''.

      SEC. 2419. ANNUAL REPORT OF COMMISSIONER.

       Section 15 of title 35, United States Code, as redesignated 
     by section 2418 of this Act, is amended to read as follows:

     ``Sec. 15. Annual report to Congress

       ``The Commissioner shall report to the Congress, not later 
     than 180 days after the end of each fiscal year, the moneys 
     received and expended by the Office, the purposes for which 
     the moneys were spent, the quality and quantity of the work 
     of the Office, and other information relating to the Office. 
     The report under this section shall also meet the 
     requirements of section 9106 of title 31, to the extent that 
     such requirements are not inconsistent with the preceding 
     sentence. The report required under this section shall be 
     deemed to be the report of the Patent and Trademark Office 
     under section 9106 of title 31, and the Commissioner shall 
     not file a separate report under such section.''.

     SEC. 2420. SUSPENSION OR EXCLUSION FROM PRACTICE.

       Section 32 of title 35, United States Code, is amended by 
     inserting before the last sentence the following: ``The 
     Commissioner shall have the discretion to designate any 
     attorney who is an officer or employee of the Patent and 
     Trademark Office to conduct the hearing required by this 
     section.''.

     SEC. 2421. FUNDING.

       Section 42 of title 35, United States Code, is amended to 
     read as follows:

     ``Sec. 42. Patent and Trademark Office funding

       ``(a) Fees Payable to the Office.--All fees for services 
     performed by or materials furnished by the Patent and 
     Trademark Office shall be payable to the Office.
       ``(b) Use of Moneys.--Moneys of the Patent and Trademark 
     Office not otherwise used to carry out the functions of the 
     Office shall be kept in cash on hand or on deposit, or 
     invested in obligations of the United States or guaranteed by 
     the United States, or in obligations or other instruments 
     which are lawful investments for fiduciary, trust, or public 
     funds. Fees available to the Commissioner under this title 
     shall be used exclusively for the processing of patent 
     applications and for other services and materials relating to 
     patents. Fees available to the Commissioner 

[[Page H 11960]]
     under section 31 of the Act of July 5, 1946 (commonly referred to as 
     the `Trademark Act of 1946'; 15 U.S.C. 1113), shall be used 
     exclusively for the processing of trademark registrations and 
     for other services and materials relating to trademarks.
       ``(c) Borrowing Authority.--The Patent and Trademark Office 
     is authorized to issue from time to time for purchase by the 
     Secretary of the Treasury its debentures, bonds, notes, and 
     other evidences of indebtedness (hereafter in this subsection 
     referred to as `obligations') to assist in financing its 
     activities. Borrowing under this subsection shall be subject 
     to prior approval in appropriation Acts. Such borrowing shall 
     not exceed amounts approved in appropriation Acts. Any such 
     borrowing shall be repaid only from fees paid to the Office 
     and surcharges appropriated by the Congress. Such obligations 
     shall be redeemable at the option of the Office before 
     maturity in the manner stipulated in such obligations and 
     shall have such maturity as is determined by the Office with 
     the approval of the Secretary of the Treasury. Each such 
     obligation issued to the Treasury shall bear interest at a 
     rate not less than the current yield on outstanding 
     marketable obligations of the United States of comparable 
     maturity during the month preceding the issuance of the 
     obligation as determined by the Secretary of the Treasury. 
     The Secretary of the Treasury shall purchase any obligations 
     of the Office issued under this subsection and for such 
     purpose the Secretary of the Treasury is authorized to use as 
     a public-debt transaction the proceeds of any securities 
     issued under chapter 31 of title 31, and the purposes for 
     which securities may be issued under that chapter are 
     extended to include such purpose. Payment under this 
     subsection of the purchase price of such obligations of the 
     Patent and Trademark Office shall be treated as public debt 
     transactions of the United States.''.

     SEC. 2422. AUDITS.

       Chapter 4 of part I of title 35, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 43. Audits

       ``(a) In General.--Financial statements of the Patent and 
     Trademark Office shall be prepared on an annual basis in 
     accordance with generally accepted accounting principles. 
     Such statements shall be audited by an independent certified 
     public accountant chosen by the Commissioner. The audit shall 
     be conducted in accordance with standards that are consistent 
     with generally accepted Government auditing standards and 
     other standards established by the Comptroller General, and 
     with the generally accepted auditing standards of the private 
     sector, to the extent feasible. The Commissioner shall 
     transmit to the Committees on the Judiciary of the House of 
     Representatives and the Senate the results of each audit 
     under this subsection.
       ``(b) Review by Comptroller General.--The Comptroller 
     General may review any audit of the financial statement of 
     the Patent and Trademark Office that is conducted under 
     subsection (a). The Comptroller General shall report to the 
     Congress and the Office the results of any such review and 
     shall include in such report appropriate recommendations.
       ``(c) Audit by Comptroller General.--The Comptroller 
     General may audit the financial statements of the Office and 
     such audit shall be in lieu of the audit required by 
     subsection (a). The Office shall reimburse the Comptroller 
     General for the cost of any audit conducted under this 
     subsection.
       ``(d) Access to Office Records.--All books, financial 
     records, report files, memoranda, and other property that the 
     Comptroller General deems necessary for the performance of 
     any audit shall be made available to the Comptroller 
     General.
       ``(e) Applicability in Lieu of Title 31 Provisions.--This 
     section applies to the Office in lieu of the provisions of 
     section 9105 of title 31.''.

     SEC. 2423. TRANSFERS.

       (a) Transfer of Functions.--Except as otherwise provided in 
     this Act, there are transferred to, and vested in, the Patent 
     and Trademark Office all functions, powers, and duties vested 
     by law in the Secretary of Commerce or the Department of 
     Commerce or in the officers or components in the Department 
     of Commerce with respect to the authority to grant patents 
     and register trademarks, and in the Patent and Trademark 
     Office, as in effect on the day before the effective date of 
     this subtitle, and in the officers and components of such 
     Office.
       (b) Transfer of Funds and Property.--The Secretary of 
     Commerce shall transfer to the Patent and Trademark Office, 
     on the effective date of this subtitle, so much of the 
     assets, liabilities, contracts, property, records, and 
     unexpended and unobligated balances of appropriations, 
     authorizations, allocations, and other funds employed, held, 
     used, arising from, available to, or to be made available to 
     the Department of Commerce, including funds set aside for 
     accounts receivable which are related to functions, powers, 
     and duties which are vested in the Patent and Trademark 
     Office by this subtitle.

            CHAPTER 2--EFFECTIVE DATE; TECHNICAL AMENDMENTS

      SEC. 2431. EFFECTIVE DATE.

       This subtitle shall take effect 6 months after the date of 
     the enactment of this Act.

     SEC. 2432. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Amendments to Title 35.--
       (1) The table of contents for part I of title 35, United 
     States Code, is amended by amending the item relating to 
     chapter 1 to read as follows:

``1. Establishment, Officers and Employees, Functions..........1.''....

       (2) The table of sections for chapter 1 of title 35, United 
     States Code, is amended to read as follows:

     ``CHAPTER 1--ESTABLISHMENT, OFFICERS AND EMPLOYEES, FUNCTIONS

``Sec.
 ``1. Establishment.
 ``2. Powers and duties.
 ``3. Officers and employees.
 ``4. Restrictions on officers and employees as to interest in patents.
 ``5. Patent and Trademark Office Management Advisory Board.
 ``6. Duties of Commissioner.
 ``7. Board of Patent Appeals and Interferences.
 ``8. Suits by and against the Corporation.
 ``9. Library.
``10. Classification of patents.
``11. Certified copies of records.
``12. Publications.
``13. Exchange of copies of patents with foreign countries.
``14. Copies of patents for public libraries.
``15. Annual report to Congress.''.
       (3) The table of contents for chapter 4 of part I of title 
     35, United States Code, is amended by adding at the end the 
     following new item:

``43. Audits.''.

       (b) Other Provisions of Law.--
       (1) Section 9101(3) of title 31, United States Code, is 
     amended by adding at the end the following:
       ``(O) the Patent and Trademark Office.''.
       (2) Section 500(e) of title 5, United States Code, is 
     amended by striking ``Patent Office'' and inserting ``Patent 
     and Trademark Office''.
       (3) Section 5102(c)(23) of title 5, United States Code, is 
     amended by striking ``, Department of Commerce''.
       (4) Section 5316 of title 5, United States Code, is amended 
     by striking ``Commissioner of Patents, Department of 
     Commerce.'', ``Deputy Commissioner of Patents and 
     Trademarks.'', ``Assistant Commissioner for Patents.'', and 
     ``Assistant Commissioner for Trademarks.''.
       (5) Section 12 of the Act of February 14, 1903 (15 U.S.C. 
     1511) is amended by striking ``(d) Patent and Trademark 
     Office;'' and redesignating subsections (a) through (g) as 
     paragraphs (1) through (6), respectively.
       (6) The Act of April 12, 1892 (27 Stat. 395; 20 U.S.C. 91) 
     is amended by striking ``Patent Office'' and inserting 
     ``Patent and Trademark Office''.
       (7) Sections 505(m) and 512(o) of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 355(m) and 360b(o)) are each 
     amended by striking ``of the Department of Commerce''.
       (8) Section 105(e) of the Federal Alcohol Administration 
     Act (27 U.S.C. 205(e)) is amended by striking ``Patent 
     Office'' and inserting ``Patent and Trademark Office''.
       (9) Section 1744 of title 28, United States Code is 
     amended--
       (A) by striking ``Patent Office'' each place it appears and 
     inserting ``Patent and Trademark Office''; and
       (B) by striking ``Commissioner of Patents'' and inserting 
     ``Commissioner of Patents and Trademarks''.
       (10) Section 1745 of title 28, United States Code, is 
     amended by striking ``United States Patent Office'' and 
     inserting ``Patent and Trademark Office''.
       (11) Section 1928 of title 28, United States Code, is 
     amended by striking ``Patent Office'' and inserting ``Patent 
     and Trademark Office''.
       (12) Section 160 of the Atomic Energy Act of 1954 (42 
     U.S.C. 2190) is amended--
       (A) by striking ``United States Patent Office'' and 
     inserting ``Patent and Trademark Office''; and
       (B) by striking ``Commissioner of Patents'' and inserting 
     ``Commissioner of Patents and Trademarks''.
       (13) Section 305(c) of the National Aeronautics and Space 
     Act of 1958 (42 U.S.C. 2457(c)) is amended by striking 
     ``Commissioner of Patents'' and inserting ``Commissioner of 
     Patents and Trademarks''.
       (14) Section 12(a) of the Solar Heating and Cooling 
     Demonstration Act of 1974 (42 U.S.C. 5510(a)) is amended by 
     striking ``Commissioner of the Patent Office'' and inserting 
     ``Commissioner of Patents and Trademarks''.
       (15) Section 1111 of title 44, United States Code, is 
     amended by striking ``the Commissioner of Patents,''.
       (16) Section 1114 of title 44, United States Code, is 
     amended by striking ``the Commissioner of Patents,''.
       (17) Section 1123 of title 44, United States Code, is 
     amended by striking ``the Patent Office,''.
       (18) Sections 1337 and 1338 of title 44, United States 
     Code, and the items relating to those sections in the table 
     of contents for chapter 13 of such title, are repealed.
       (19) Section 10(i) of the Trading With the Enemy Act (50 
     U.S.C. App. 10(i)) is amended by striking ``Commissioner of 
     Patents'' and inserting ``Commissioner of Patents and 
     Trademarks''.
       (20) Section 8G(a)(2) of the Inspector General Act of 1978 
     (5 U.S.C. App.) is amended by inserting ``the Patent and 
     Trademark Office,'', after ``the Panama Canal Commission,''.

[[Page H 11961]]

                  Subtitle E--Miscellaneous Provisions

     SEC. 2501. REFERENCES.

       Any reference in any other Federal law, Executive order, 
     rule, regulation, or delegation of authority, or any document 
     of or pertaining to a department or office from which a 
     function is transferred by this title--
       (1) to the head of such department or office is deemed to 
     refer to the head of the department or office to which such 
     function is transferred; or
       (2) to such department or office is deemed to refer to the 
     department or office to which such function is transferred.

     SEC. 2502. EXERCISE OF AUTHORITIES.

       Except as otherwise provided by law, a Federal official to 
     whom a function is transferred by this title may, for 
     purposes of performing the function, exercise all authorities 
     under any other provision of law that were available with 
     respect to the performance of that function to the official 
     responsible for the performance of the function immediately 
     before the effective date of the transfer of the function 
     under this title.

     SEC. 2503. SAVINGS PROVISIONS.

       (a) Legal Documents.--All orders, determinations, rules, 
     regulations, permits, grants, loans, contracts, agreements, 
     certificates, licenses, and privileges--
       (1) that have been issued, made, granted, or allowed to 
     become effective by the President, the Secretary of Commerce, 
     the United States Trade Representative, any officer or 
     employee of any office transferred by this title, or any 
     other Government official, or by a court of competent 
     jurisdiction, in the performance of any function that is 
     transferred by this title, and
       (2) that are in effect on the effective date of such 
     transfer (or become effective after such date pursuant to 
     their terms as in effect on such effective date),

     shall continue in effect according to their terms until 
     modified, terminated, superseded, set aside, or revoked in 
     accordance with law by the President, any other authorized 
     official, a court of competent jurisdiction, or operation of 
     law.
       (b) Proceedings.--This title shall not affect any 
     proceedings or any application for any benefits, service, 
     license, permit, certificate, or financial assistance pending 
     on the date of the enactment of this Act before an office 
     transferred by this title, but such proceedings and 
     applications shall be continued. Orders shall be issued in 
     such proceedings, appeals shall be taken therefrom, and 
     payments shall be made pursuant to such orders, as if this 
     Act had not been enacted, and orders issued in any such 
     proceeding shall continue in effect until modified, 
     terminated, superseded, or revoked by a duly authorized 
     official, by a court of competent jurisdiction, or by 
     operation of law. Nothing in this subsection shall be 
     considered to prohibit the discontinuance or modification of 
     any such proceeding under the same terms and conditions and 
     to the same extent that such proceeding could have been 
     discontinued or modified if this title had not been enacted.
       (c) Suits.--This title shall not affect suits commenced 
     before the date of the enactment of this Act, and in all such 
     suits, proceeding shall be had, appeals taken, and judgments 
     rendered in the same manner and with the same effect as if 
     this title had not been enacted.
       (d) Nonabatement of Actions.--No suit, action, or other 
     proceeding commenced by or against the Department of Commerce 
     or the Secretary of Commerce, or by or against any individual 
     in the official capacity of such individual as an officer or 
     employee of an office transferred by this title, shall abate 
     by reason of the enactment of this title.
       (e) Continuance of Suits.--If any Government officer in the 
     official capacity of such officer is party to a suit with 
     respect to a function of the officer, and under this title 
     such function is transferred to any other officer or office, 
     then such suit shall be continued with the other officer or 
     the head of such other office, as applicable, substituted or 
     added as a party.
       (f) Administrative Procedure and Judicial Review.--Except 
     as otherwise provided by this title, any statutory 
     requirements relating to notice, hearings, action upon the 
     record, or administrative or judicial review that apply to 
     any function transferred by this title shall apply to the 
     exercise of such function by the head of the Federal agency, 
     and other officers of the agency, to which such function is 
     transferred by this title.

     SEC. 2504. TRANSFER OF ASSETS.

       Except as otherwise provided in this title, so much of the 
     personnel, property, records, and unexpended balances of 
     appropriations, allocations, and other funds employed, used, 
     held, available, or to be made available in connection with a 
     function transferred to an official or agency by this title 
     shall be available to the official or the head of that 
     agency, respectively, at such time or times as the Director 
     of the Office of Management and Budget directs for use in 
     connection with the functions transferred.

     SEC. 2505. DELEGATION AND ASSIGNMENT.

       Except as otherwise expressly prohibited by law or 
     otherwise provided in this title, an official to whom 
     functions are transferred under this title (including the 
     head of any office to which functions are transferred under 
     this title) may delegate any of the functions so transferred 
     to such officers and employees of the office of the official 
     as the official may designate, and may authorize successive 
     redelegations of such functions as may be necessary or 
     appropriate. No delegation of functions under this section or 
     under any other provision of this title shall relieve the 
     official to whom a function is transferred under this title 
     of responsibility for the administration of the function.

     SEC. 2506. AUTHORITY OF DIRECTOR OF THE OFFICE OF MANAGEMENT 
                   AND BUDGET WITH RESPECT TO FUNCTIONS 
                   TRANSFERRED.

       (a) Determinations.--If necessary, the Director shall make 
     any determination of the functions that are transferred under 
     this title.
       (b) Incidental Transfers.--The Director, at such time or 
     times as the Director shall provide, may make such 
     determinations as may be necessary with regard to the 
     functions transferred by this title, and to make such 
     additional incidental dispositions of personnel, assets, 
     liabilities, grants, contracts, property, records, and 
     unexpended balances of appropriations, authorizations, 
     allocations, and other funds held, used, arising from, 
     available to, or to be made available in connection with such 
     functions, as may be necessary to carry out the provisions of 
     this title. The Director shall provide for the termination of 
     the affairs of all entities terminated by this title and for 
     such further measures and dispositions as may be necessary to 
     effectuate the purposes of this title.

     SEC. 2507. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.

       For purposes of this title, the vesting of a function in a 
     department or office pursuant to reestablishment of an office 
     shall be considered to be the transfer of the function.

     SEC. 2508. AVAILABILITY OF EXISTING FUNDS.

       Existing appropriations and funds available for the 
     performance of functions, programs, and activities terminated 
     pursuant to this title shall remain available, for the 
     duration of their period of availability, for necessary 
     expenses in connection with the termination and resolution of 
     such functions, programs, and activities.

     SEC. 2509. DEFINITIONS.

       For purposes of this title--
       (1) the term ``function'' includes any duty, obligation, 
     power, authority, responsibility, right, privilege, activity, 
     or program; and
       (2) the term `office' includes any office, administration, 
     agency, bureau, institute, council, unit, organizational 
     entity, or component thereof.
       Subtitle F--Citizens Commission on 21st Century Government

     SEC. 2601. SHORT TITLE AND PURPOSE.

       (a) Short Title.--This subtitle may be cited as the ``21st 
     Century Government Act''.
       (b) Purpose.--The purpose of this subtitle is to establish 
     a bipartisan commission to--
       (1) identify and analyze the current functions and missions 
     of the Federal Government; and
       (2) based on that analysis, develop recommendations to 
     restructure the executive branch of the Federal Government, 
     in order to--
       (A) focus Federal efforts on those core functions and 
     missions that the Federal Government must perform in the 21st 
     Century;
       (B) ensure that the Federal Government performs those 
     functions as effectively and efficiently as possible;
       (C) consolidate executive organizations around clear, 
     specific missions reflecting current national priorities;
       (D) eliminate functions that do not advance current 
     national priorities;
       (E) eliminate duplication of functions and activities 
     within and among departments and agencies;
       (F) streamline organizational hierarchy so as to reduce 
     costs and increase accountability for performance; and
       (G) provide a basis for--
       (i) the subsequent implementation of operational reforms 
     for Federal agencies, including administrative consolidation 
     and the provision of 1-stop services for citizens; and
       (ii) more detailed structural improvements within each 
     agency.

     SEC. 2602. CITIZENS COMMISSION ON 21ST CENTURY GOVERNMENT.

       (a) Establishment.--There is established in the legislative 
     branch an independent commission to be known as the Citizens 
     Commission on 21st Century Government (in this subtitle 
     referred to as the ``Commission'').
       (b) Appointment of Commissioners.--
       (1) Composition.--The Commission shall be a bipartisan body 
     composed of 11 members, who shall be appointed as follows:
       (A) Three members shall be appointed by the Speaker of the 
     House of Representatives.
       (B) Three members shall be appointed by the majority leader 
     of the Senate.
       (C) Two members shall be appointed by the minority leader 
     of the House of Representatives.
       (D) Two members shall be appointed by the minority leader 
     of the Senate.
       (E) One member appointed jointly by the Speaker of the 
     House of Representatives and the majority leader of the 
     Senate, in consultation with the minority leaders of the 
     House of Representatives and the Senate, who shall be the 
     Chairman of the Commission.
       (2) Membership qualifications.--Any citizen of the United 
     States is eligible to be appointed as a member of the 
     Commission, except an individual serving as a Member of 
     Congress or an elected or appointed official of the executive 
     branch of the Federal Government.
       (3) Conflict of interests.--For purposes of chapter 11 of 
     title 18, United States Code, 

[[Page H 11962]]
     a member of the Commission shall be a special Government employee.
       (4) Date of appointments.--All members of the Commission 
     shall be appointed no later than 30 days after the date of 
     the enactment of this Act.
       (c) Terms.--Each member of the Commission shall serve until 
     the termination of the Commission.
       (d) Vacancies.--A vacancy on the Commission shall be filled 
     in the same manner as was the original appointment.
       (e) Meetings.--The Commission shall meet as necessary to 
     carry out its responsibilities.
       (f) Travel Expenses.--Members of the Commission shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703 of 
     title 5, United States Code.
       (g) Director.--
       (1) Appointment.--The Chairman, in consultation with the 
     other members of the Commission, shall appoint a Director of 
     the Commission.
       (2) Pay.--The Director shall be paid at the rate of basic 
     pay payable for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code.
       (h) Staff.--
       (1) Appointment.--The Director may, with the approval of 
     the Chairman, appoint and fix the pay of employees of the 
     Commission without regard to the provisions of title 5, 
     United States Code, governing appointment in the competitive 
     service, and any Commission employee may be paid without 
     regard to the provisions of chapter 51 and subchapter III of 
     chapter 53 of that title relating to classification and 
     General Schedule pay rates, except that a Commission employee 
     may not receive pay in excess of the annual rate of basic pay 
     payable for level V of the Executive Schedule under section 
     5316 of title 5, United States Code.
       (2) Detail.--(A) Upon request of the Director, the head of 
     any Federal department or agency may detail any of the 
     personnel of the department or agency to the Commission to 
     assist the Commission in carrying out its duties under this 
     subtitle. Such details may be made with or without 
     reimbursement, and shall be without interruption or loss of 
     civil service status or privilege.
       (B) Upon request of the Director, a Member of Congress or 
     an officer who is the head of an office or committee of the 
     Senate or House of Representatives or of an agency within the 
     legislative branch may detail an employee of the office or 
     committee of which such Member or officer is the head to the 
     Commission to assist the Commission in carrying out its 
     duties under this subtitle.
       (i) Support Services.--The Comptroller General of the 
     United States shall provide support services to the 
     Commission in accordance with an agreement entered into with 
     the Commission.
       (j) Other Authorities.--The Commission may procure by 
     contract, to the extent funds are available, the temporary or 
     intermittent services of experts or consultants pursuant to 
     section 3109 of title 5, United States Code. The Commission 
     shall give public notice of any such contract before entering 
     into such contract.
       (k) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Commission $1,250,000 for fiscal 
     year 1996 to carry out its responsibilities under this 
     subtitle, to remain available until December 31, 1996.
       (l) Termination.--The Commission shall terminate December 
     31, 1996.

     SEC. 2603. DEPARTMENT AND AGENCY COOPERATION.

       All Federal agencies and employees of all Federal agencies 
     shall cooperate fully with all requests for information from 
     the Commission and shall respond to any such request for 
     information within 30 days or such other time as is agreed 
     upon by the requesting and requested persons.

     SEC. 2604. HEARINGS.

       The Commission shall hold such hearings as it considers 
     appropriate. The Chairman of the Commission shall designate a 
     member of the Commission to preside at any hearing in the 
     absence of the Chairman.

     SEC. 2605. COMMISSION PROCEDURES.

       (a) Startup.--The Commission may conduct business at any 
     time after at least 6 of its members have been appointed in 
     accordance with section 2602.
       (b) Voting.--A majority of those members of the Commission 
     who have been appointed in accordance with section 2602 shall 
     constitute a quorum for purposes of conducting Commission 
     business. Any recommendation of the Commission shall require 
     an affirmative vote of a majority of Commission members who 
     have been appointed in accordance with section 2602. Members 
     of the Commission may not vote by proxy.

     SEC. 2606. FRAMEWORK FOR THE FEDERAL GOVERNMENT IN THE 21ST 
                   CENTURY.

       (a) Analysis of Current Federal Functions.--The Commission 
     shall conduct a comprehensive review of the functions 
     currently performed by the Federal Government, and shall 
     analyze each such function under the following criteria:
       (1) Does the function have clearly defined missions and 
     objectives.
       (2) Do those missions and objectives serve a currently 
     valid and important Federal role, including analysis of 
     whether--
       (A) there is a need for governmental action;
       (B) the Federal Government has exclusive constitutional 
     authority to perform the function;
       (C) the Federal Government is otherwise uniquely positioned 
     to perform the function; and
       (D) there is a clear need for or advantage to performing 
     the function at the Federal level versus at the State or 
     local level.
       (3) Does the current Federal role constitute the most 
     effective and efficient means of achieving the objectives of 
     the function.
       (4) Does the current Federal role constitute the least 
     intrusive means of achieving the objectives with respect to 
     individual liberty and principles of Federalism.
       (5) Is there a need to enhance Federal performance of the 
     function, including analysis of whether--
       (A) the Federal Government requires greater resources or 
     authority to perform that function;
       (B) there are other ways of consolidating Federal resources 
     and activities directed to the function; and
       (C) there are opportunities for participation by the 
     private sector or other levels of government.
       (b) Commission Reports and Recommendations.--
       (1) In general.--The Commission shall prepare and submit to 
     the Congress a report or reports on the results of its 
     analysis. Each report shall be made public and shall 
     include--
       (A) the Commission's findings and conclusions;
       (B) the Commission's recommendations for the restructuring 
     or termination of current functions;
       (C) the reasons for such findings, conclusions, and 
     recommendations; and
       (D) a complete description of the Commission's 
     deliberations, including a discussion of any major points on 
     which the members had significant disagreements.
       (2) Report on matters of highest priority.--Not later than 
     July 31, 1996, the Commission shall submit a report 
     containing those findings, conclusions, and recommendations 
     that the Commission considers to be of highest priority.
       (3) Additional reports.--The Commission may submit such 
     additional reports under this section as it considers 
     appropriate, and at such times on or before December 31, 
     1996, as it considers appropriate.

     SEC. 2607. PROPOSAL FOR REORGANIZING THE EXECUTIVE BRANCH.

       (a) In General.--The Commission shall--
       (1) examine all significant issues related to the 
     organization of the executive branch of the Federal 
     Government; and
       (2) develop organizational recommendations to eliminate 
     duplication, reduce costs, streamline operations, and improve 
     performance and accountability in Federal departments and 
     agencies.
       (b) Legislative Proposal.--The recommendations of the 
     Commission under this section shall be encompassed in a 
     single legislative proposal under section 2608 which 
     implements a comprehensive reorganization and restructuring 
     plan for the executive branch and which addresses, among 
     other issues, the following:
       (1) Whether the Federal Government should include fewer 
     departments, each with clear, specific missions and goals, 
     and if so, what those departments should be.
       (2) Whether and how to ensure that similar functions of 
     Government, such as statistical, science, or trade functions, 
     are consolidated within a single department or agency.
       (3) Whether and how significant common administrative 
     functions should be consolidated within one executive 
     organization.
       (4) Whether a single department-level office should be 
     designated with responsibility for representation and 
     oversight within the White House of all independent agencies 
     of the executive branch.
       (5) Whether and how a streamlined hierarchical structure 
     can be provided within each department and agency.
       (c) Other Recommendations.--The Commission may also make 
     additional recommendations which it determines will enhance 
     the operational effectiveness of the organizational 
     recommendations. Such recommendations shall not be included 
     in any draft implementation bill to be considered under 
     section 2609, but may be submitted separately to the 
     Congress.

     SEC. 2608. PROCEDURES FOR MAKING RECOMMENDATIONS.

       (a) Commission Report.--No later than December 31, 1996, 
     the Commission shall prepare and submit to the Congress a 
     single report, which shall be made public, and which shall 
     include--
       (1) a description of the Commission's findings and 
     recommendations pursuant to section 2607;
       (2) the reasons for such recommendations; and
       (3) a single proposal consisting of draft legislation to 
     implement those recommendations for which legislation is 
     appropriate.
       (b) Review and Comment by the President.--No later than 
     March 31, 1997, the President shall submit to the Congress an 
     evaluation of the Commission's report under this section, 
     together with any recommendations that the President 
     considers appropriate.

     SEC. 2609. CONGRESSIONAL CONSIDERATION OF REFORM PROPOSALS.

       (a) Definitions.--For purposes of this section--
       (1) the term ``implementation bill'' means only a bill 
     which is introduced as provided under subsection (b), and 
     consists of the 

[[Page H 11963]]
     draft legislation contained in the report submitted to Congress under 
     section 2608; and
       (2) the term ``calendar day of session'' means a calendar 
     day other than one on which either House is not in session 
     because of an adjournment of more than 3 days to a date 
     certain.
       (b) Introduction, Referral, and Report or Discharge.--
       (1) Introduction.--On the first calendar day of session on 
     which both Houses are in session immediately following April 
     15, 1997, a bill consisting of the draft legislation 
     contained in the report submitted to Congress under section 
     2608 shall be introduced (by request)--
       (A) in the Senate by the majority leader or by any Member 
     designated by the majority leader; and
       (B) in the House of Representatives by the majority leader 
     or by any Member designated by the majority.
     If such a bill is not introduced in either House as provided 
     in the preceding session within 3 calendar days of session 
     after such first calendar day of session, then any Member of 
     that House may introduce such a bill.
       (2) Referral.--The implementation bill introduced in the 
     Senate under paragraph (1) shall be referred concurrently to 
     the Committee on Governmental Affairs of the Senate and other 
     committees with jurisdiction.
       (3) Report or discharge.--If any committee to which an 
     implementation bill is referred has not reported such bill by 
     the end of the 15th calendar day of session after the date of 
     introduction of such bill, such committee shall be 
     immediately discharged from further consideration of such 
     bill, and upon being reported or discharged from all 
     committees, such bill shall be placed on the appropriate 
     calendar of the House involved.
       (c) Procedures for Consideration by the Senate.--
       (1) In general.--On or after the second calendar day of 
     session after the date on which an implementation bill is 
     placed on the Senate calendar, it is in order (even though a 
     previous motion to the same effect has been disagreed to) for 
     any Senator to move to proceed to the consideration of the 
     implementation bill (but only on the day after the calendar 
     day of session on which such Senator announces on the floor 
     of the Senate the Senator's intention to do so). All points 
     of order against the implementation bill (and against 
     consideration of the implementation bill) are waived. The 
     motion is privileged and is not debatable. The motion is not 
     subject to amendment, or to a motion to postpone, or to a 
     motion to proceed to the consideration of other business. A 
     motion to reconsider the vote by which the motion is agreed 
     to or disagreed to shall not be in order. If a motion to 
     proceed to the consideration of the implementation bill is 
     agreed to, the Senate shall immediately proceed to 
     consideration of the implementation bill without intervening 
     motion, order, or other business, and the implementation bill 
     shall remain the unfinished business of the Senate until 
     disposed of.
       (2) Debate.--Debate on the implementation bill, and on all 
     debatable motions and appeals in connection therewith, shall 
     be limited to not more than 10 hours, which shall be divided 
     equally between the majority leader and the minority leader 
     or their designees. An amendment to the implementation bill 
     is not in order. A motion further to limit debate is in order 
     and not debatable. A motion to postpone, or a motion to 
     proceed to the consideration of other business, or a motion 
     to recommit the implementation bill is not in order. A motion 
     to reconsider the vote by which the implementation bill is 
     agreed to or disagreed to is not in order.
       (3) Motion to suspend or waive application.--No motion to 
     suspend or waive the application of this subsection shall be 
     in order, except by unanimous consent.
       (4) Appeals from chair.--Appeals from the decisions of the 
     Chair relating to the application of the rules of the Senate 
     to the procedure relating to an implementation bill shall be 
     decided without debate.
       (5) Final passage.--Immediately following the conclusion of 
     the debate on an implementation bill and a single quorum call 
     at the conclusion of the debate if requested in accordance 
     with the rules of the Senate, the vote on final passage of 
     the implementation bill shall occur.
       (d) Consideration by Other House.--
       (1) In general.--If, before the passage by the Senate of an 
     implementation bill, the Senate receives from the House of 
     Representatives an implementation bill, then the following 
     procedures shall apply:
       (A) The implementation bill of the House of Representatives 
     shall not be referred to a committee and may not be 
     considered in the Senate except in the case of final passage 
     as provided in subparagraph (B)(ii).
       (B) With respect to an implementation bill of the Senate--
       (i) the procedure in the Senate shall be the same as if no 
     implementation bill had been received from the House of 
     Representatives; but
       (ii) the vote on final passage shall be on the 
     implementation bill of the House of Representatives.
       (2) Final disposition.--Upon disposition of the 
     implementation bill received from the House of 
     Representatives, it shall no longer be in order to consider 
     the implementation bill that originated in the Senate.
       (f) Rules of the Senate and House.--This section is enacted 
     by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of an implementation bill, and it 
     supersedes other rules only to the extent that it is 
     inconsistent with such rules; and
       (2) with full recognition of the constitutional right of 
     either House to change its rules (so far as relating to the 
     procedure of that House) at any time, in the same manner, and 
     to the same extent as in the case of any other rule of that 
     House.

     SEC. 2610. DISTRIBUTION OF ASSETS.

       Any proceeds from the sale of assets of any department or 
     agency resulting from the enactment of an implementation bill 
     under section 2609 shall be--
       (1) applied to reduce the Federal deficit; and
       (2) deposited in the Treasury and treated as general 
     receipts.

     SEC. 2611. AGENCY DEFINED.

       For purposes of this subtitle, the term ``agency'' means 
     each authority of the Federal Government, including all 
     departments, independent agencies, government-sponsored 
     enterprises, and Government corporations, except the 
     legislative branch, judicial branch, the governments of the 
     territories or possessions of the United States, or the 
     District of Columbia.

                               H.R. 2586

                         Offered By: Mr. Walker

       Amendment No. 2:
                      TITLE III--REGULATORY REFORM

     SEC. 3001. SHORT TITLE.

       This title may be cited as the ``Comprehensive Regulatory 
     Reform Act of 1995''.

     SEC. 3002. DEFINITIONS.

       Section 551 of title 5, United States Code, is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``this subchapter`` and inserting ``this chapter and chapters 
     7 and 8'';
       (2) in paragraph (13), by striking ``and'';
       (3) in paragraph (14), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following new paragraph:
       ``(15) `Director' means the Director of the Office of 
     Management and Budget.''.

     SEC. 3003. RULEMAKING.

       Section 553 of title 5, United States Code, is amended to 
     read as follows:

     ``Sec. 553. Rulemaking

       ``(a) Applicability.--This section applies to every 
     rulemaking, according to the provisions thereof, except to 
     the extent that there is involved--
       ``(1) a matter pertaining to a military or foreign affairs 
     function of the United States;
       ``(2) a matter relating to the management or personnel 
     practices of an agency;
       ``(3) an interpretive rule, general statement of policy, 
     guidance, or rule of agency organization, procedure, or 
     practice, unless such rule, statement, or guidance has 
     general applicability and substantially alters or creates 
     rights or obligations of persons outside the agency; or
       ``(4) a rule relating to the acquisition, management, or 
     disposal by an agency of real or personal property, or of 
     services, that is promulgated in compliance with otherwise 
     applicable criteria and procedures.
       ``(b) Notice of Proposed Rulemaking.--General notice of 
     proposed rulemaking shall be published in the Federal 
     Register, unless all persons subject thereto are named and 
     either personally served or otherwise have actual notice of 
     the proposed rulemaking in accordance with law. Each notice 
     of proposed rulemaking shall include--
       ``(1) a statement of the time, place, and nature of public 
     rulemaking proceedings;
       ``(2) a succinct explanation of the need for and specific 
     objectives of the proposed rule, including an explanation of 
     the agency's determination of whether or not the rule is a 
     major rule within the meaning of section 621(5);
       ``(3) a succinct explanation of the specific statutory 
     basis for the proposed rule, including an explanation of--
       ``(A) whether the interpretation is clearly required by the 
     text of the statute; or
       ``(B) if the interpretation is not clearly required by the 
     text of the statute, an explanation that the interpretation 
     is within the range of permissible interpretations of the 
     statute as identified by the agency, and an explanation why 
     the interpretation selected by the agency is the agency's 
     preferred interpretation;
       ``(4) the terms or substance of the proposed rule;
       ``(5) a summary of any initial analysis of the proposed 
     rule required to be prepared or issued pursuant to chapter 6;
       ``(6) a statement that the agency seeks proposals from the 
     public and from State and local governments for alternative 
     methods to accomplish the objectives of the rulemaking that 
     are more effective or less burdensome than the approach used 
     in the proposed rule; and
       ``(7) a statement specifying where the file of the 
     rulemaking proceeding maintained pursuant to subsection (j) 
     may be inspected and how copies of the items in the file may 
     be obtained.
       ``(c) Period for Comment.--The agency shall give interested 
     persons not less than 60 days after providing the notice 
     required by subsection (b) to participate in the rulemaking 
     through the submission of written data, views, or arguments.
       ``(d) Good Cause Exception.--Unless notice or hearing is 
     required by statute, a final 

[[Page H 11964]]
     rule may be adopted and may become effective without prior compliance 
     with subsections (b) and (c) and (e) through (g) if the 
     agency for good cause finds that providing notice and public 
     procedure thereon before the rule becomes effective is 
     impracticable, unnecessary, or contrary to the public 
     interest. If a rule is adopted under this subsection, the 
     agency shall publish the rule in the Federal Register with 
     the finding and a succinct explanation of the reasons 
     therefore.
       ``(e) Procedural Flexibility.--To collect relevant 
     information, and to identify and elicit full and 
     representative public comment on the significant issues of a 
     particular rulemaking, the agency may use such other 
     procedures as the agency determines are appropriate, 
     including--
       ``(1) the publication of an advance notice of proposed 
     rulemaking;
       ``(2) the provision of notice, in forms which are more 
     direct than notice published in the Federal Register, to 
     persons who would be substantially affected by the proposed 
     rule but who are unlikely to receive notice of the proposed 
     rulemaking through the Federal Register;
       ``(3) the provision of opportunities for oral presentation 
     of data, views, information, or rebuttal arguments at 
     informal public hearings, meetings, and roundtable 
     discussions, which may be held in the District of Columbia 
     and other locations;
       ``(4) the establishment of reasonable procedures to 
     regulate the course of informal public hearings, meetings and 
     roundtable discussions, including the designation of 
     representatives to make oral presentations or engage in 
     direct or cross-examination on behalf of several parties with 
     a common interest in a rulemaking, and the provision of 
     transcripts, summaries, or other records of all such public 
     hearings and summaries of meetings and round table 
     discussions;
       ``(5) the provision of summaries, explanatory materials, or 
     other technical information in response to public inquiries 
     concerning the issues involved in the rulemaking; and
       ``(6) the adoption or modification of agency procedural 
     rules to reduce the cost or complexity of the procedural 
     rules.
       ``(f) Planned Final Rule.--If the provisions of a final 
     rule that an agency plans to adopt are so different from the 
     provisions of the original notice of proposed rulemaking that 
     the original notice did not fairly apprise the public of the 
     issues ultimately to be resolved in the rulemaking or of the 
     substance of the rule, the agency shall publish in the 
     Federal Register a notice of the final rule the agency plans 
     to adopt, together with the information relevant to such rule 
     that is required by the applicable provisions of this section 
     and that has not previously been published in the Federal 
     Register. The agency shall allow a reasonable period for 
     comment on such planned final rule prior to its adoption.
       ``(g) Statement of Basis and Purpose.--An agency shall 
     publish each final rule it adopts in the Federal Register, 
     together with a concise statement of the basis and purpose 
     of the rule and a statement of when the rule may become 
     effective. The statement of basis and purpose shall 
     include--
       ``(1) an explanation of the need for, objectives of, and 
     specific statutory authority for, the rule;
       ``(2) a discussion of, and response to, any significant 
     factual or legal issues presented by the rule, or raised by 
     the comments on the proposed rule, including a description of 
     the reasonable alternatives to the rule proposed by the 
     agency and by interested persons, and the reasons why such 
     alternatives were rejected;
       ``(3) a succinct explanation of whether the specific 
     statutory basis for the rule is expressly required by the 
     text of the statute, or if the specific statutory 
     interpretation upon which the rule is based is not expressly 
     required by the text of the statute, an explanation that the 
     interpretation is within the range of permissible 
     interpretations of the statute as identified by the agency, 
     and why the agency has rejected other interpretations 
     proposed in comments to the agency;
       ``(4) an explanation of how the factual conclusions upon 
     which the rule is based are substantially supported in the 
     rulemaking file; and
       ``(5) a summary of any final analysis of the rule required 
     to be prepared or issued pursuant to chapter 6.
       ``(h) Nonapplicability.--In the case of a rule that is 
     required by statute to be made on the record after 
     opportunity for an agency hearing, sections 556 and 557 shall 
     apply in lieu of subsections (c), (e), (f), and (g).
       ``(i) Effective Date.--An agency shall publish the final 
     rule in the Federal Register not later than 60 days before 
     the effective date of such rule. An agency may make a rule 
     effective in less than 60 days after publication in the 
     Federal Register if the rule grants or recognizes an 
     exemption, relieves a restriction, or if the agency for good 
     cause finds that such a delay in the effective date would be 
     contrary to the public interest and publishes such finding 
     and an explanation of the reasons therefore, with the final 
     rule.
       ``(j) Rulemaking File.--(1) The agency shall maintain a 
     file for each rulemaking proceeding conducted pursuant to 
     this section and shall maintain a current index to such file.
       ``(2) Except as provided in subsection (k), the file shall 
     be made available to the public not later than the date on 
     which the agency makes an initial publication concerning the 
     rule.
       ``(3) The rulemaking file shall include--
       ``(A) the notice of proposed rulemaking, any supplement to, 
     or modification or revision of, such notice, and any advance 
     notice of proposed rulemaking;
       ``(B) copies of all written comments received on the 
     proposed rule;
       ``(C) a transcript, summary, or other record of any public 
     hearing conducted on the rulemaking;
       ``(D) copies, or an identification of the place at which 
     copies may be obtained, of factual and methodological 
     material that pertains directly to the rulemaking and that 
     was considered by the agency in connection with the 
     rulemaking, or that was submitted to or prepared by or for 
     the agency in connection with the rulemaking; and
       ``(E) any statement, description, analysis, or other 
     material that the agency is required to prepare or issue in 
     connection with the rulemaking, including any analysis 
     prepared or issued pursuant to Chapter 6.

     The agency shall place each of the foregoing materials in the 
     file as soon as practicable after each such material becomes 
     available to the agency.
       ``(k) Confidential Treatment.--The file required by 
     subsection (j) need not include any material described in 
     section 552(b) if the agency includes in the file a statement 
     that notes the existence of such material and the basis upon 
     which the material is exempt from public disclosure under 
     such section. The agency may not substantially rely on any 
     such material in formulating a rule unless it makes the 
     substance of such material available for adequate comment by 
     interested persons. The agency may use summaries, 
     aggregations of data, or other appropriate mechanisms to 
     protect the confidentiality of such material to the maximum 
     extent possible.
       ``(l) Rulemaking Petition.--(1) Each agency shall give an 
     interested person the right to petition--
       ``(A) for the issuance, amendment, or repeal of a rule;
       ``(B) for the amendment or repeal of an interpretive rule 
     or general statement of policy or guidance; and
       ``(C) for an interpretation regarding the meaning of a 
     rule, interpretive rule, general statement of policy, or 
     guidance.
       ``(2) The agency shall grant or deny a petition made 
     pursuant to paragraph (1), and give written notice of its 
     determination to the petitioner, with reasonable promptness, 
     but in no event later than 18 months after the petition was 
     received by the agency.
       ``(3) The written notice of the agency's determination 
     shall include an explanation of the determination and a 
     response to each significant factual and legal claim that 
     forms the basis of the petition.
       ``(m) Judicial Review.--(1) The decision of an agency to 
     use or not to use procedures in a rulemaking under subsection 
     (e) shall not be subject to judicial review.
       ``(2) The rulemaking file required under subsection (j) 
     shall constitute the rulemaking record for purposes of 
     judicial review.
       ``(3) No court shall hold unlawful or set aside an agency 
     rule based on a violation of subsection (j), unless the court 
     finds that such violation has precluded fair public 
     consideration of a material issue of the rulemaking taken as 
     a whole.
       ``(4)(A) Judicial review of compliance or noncompliance 
     with subsection (j) shall be limited to review of action or 
     inaction on the part of an agency.
       ``(B) A decision by an agency to deny a petition under 
     subsection (l) shall be subject to judicial review 
     immediately upon denial, as final agency action under the 
     statute granting the agency authority to carry out its 
     action.
       ``(n) Construction.--(1) Notwithstanding any other 
     provision of law, this section shall apply to and supplement 
     the procedures governing informal rulemaking under statutes 
     that are not generally subject to this section.
       ``(2) Nothing in this section authorizes the use of 
     appropriated funds available to any agency to pay the 
     attorney's fees or other expenses of persons intervening in 
     agency proceedings.''.

     SEC. 3004. ANALYSIS OF AGENCY RULES.

       (a) In General.--(1) 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 or parasitic diseases.
       (2) Section 551 of title 5, United States Code, is amended 
     by striking ``and'' at the end of paragraph (13), by striking 
     the period at the end of paragraph (14) and inserting a 
     semicolon, and by adding at the end the following:
       ``(15) `major rule' means any rule subject to section 
     553(c) that is likely to result in--
       ``(A) an annual effect on the economy of $75,000,000 or 
     more;
       ``(B) a major increase in costs or prices for consumers, 
     individual industries, Federal, State, or local government 
     agencies, or geographic regions, or
       ``(C) significant adverse effects on competition, 
     employment, investment, productivity, 

[[Page H 11965]]
     innovation, or on the ability of United States-based enterprises to 
     compete with foreign-based enterprises in domestic and export 
     markets; and
       ``(16) `Director' means the Director of the Office of 
     Management and Budget.''.
       ``(17) The term `cost' means the reasonably identifiable 
     significant adverse effects, quantifiable and 
     nonquantifiable, including social, environmental, health, and 
     economic effects that are expected to result directly or 
     indirectly from implementation of a rule or other agency 
     action.
       ``(18) The term `cost-benefit analysis' means an evaluation 
     of the costs and benefits of a rule, quantified to the extent 
     feasible and appropriate and otherwise qualitatively 
     described, that is prepared in accordance with the 
     requirements of this subchapter at the level of detail 
     appropriate and practicable for reasoned decision making on 
     the matter involved, taking into consideration the 
     significance and complexity of the decision and any need for 
     expedition.
       ``(19) The term `reasonable alternatives' means the range 
     of reasonable regulatory options that the agency has 
     authority to consider under the statute granting rulemaking 
     authority, including flexible regulatory options of the type 
     described in section 622(c)(2)(C)(iii), unless precluded by 
     the statute granting the rulemaking authority.''.
       (3) Section 553 of title 5, United States Code, is amended 
     by adding at the end the following:
       ``(f)(1) Each agency shall for a proposed major rule 
     publish in the Federal Register, at least 90 days before the 
     date of publication of the general notice required 
     under subsection (b), a notice of intent to engage in 
     rulemaking.
       ``(2) A notice under paragraph (1) for a proposed major 
     rule shall include, to the extent possible, the information 
     required to be included in a regulatory impact analysis for 
     the rule under subsection (i)(4)(B) and (D).
       ``(3) For a major rule proposed by an agency, the head of 
     the agency shall include in a general notice under subsection 
     (b), a preliminary regulatory impact analysis for the rule 
     prepared in accordance with subsection (i).
       ``(4) For a final major rule, the agency shall include with 
     the statement of basis and purpose--
       ``(A) a summary of a final regulatory impact analysis of 
     the rule in accordance with subsection (i); and
       ``(B) a clear delineation of all changes in the information 
     included in the final regulatory impact analysis under 
     subsection (i) from any such information that was included in 
     the notice for the rule under subsection (b).

     The agency shall provide the complete text of a final 
     regulatory impact analysis upon request.
       ``(5) The issuance of a notice of intent to engage in 
     rulemaking under paragraph (1) and the issuance of a 
     preliminary regulatory impact analysis under paragraph (3) 
     shall not be considered final agency action for purposes of 
     section 704.
       ``(6) In a rulemaking involving a major rule, the agency 
     conducting the rulemaking shall make a written record 
     describing the subject of all contacts the agency made with 
     persons outside the agency relating to such rulemaking. If 
     the contact was made with a non-governmental person, the 
     written record of such contact shall be made available, upon 
     request to the public.''.
       (4)(A) Hearing Requirement.--Section 553 of title 5, United 
     States Code, as amended by section 322, is further amended by 
     adding after subsection (f) the following:
       ``(g) If more than 100 interested persons acting 
     individually submit requests for a hearing to an agency 
     regarding any major rule proposed by the agency, the agency 
     shall hold such a hearing on the proposed rule.''.
       (B) Extension of Comment Period.--Section 553 of title 5, 
     United States Code, as amended by subsection (a), is further 
     amended by adding after subsection (g) the following:
       ``(h) If during the 90-day period beginning on the date of 
     publication of a notice under subsection (f) for a proposed 
     major rule, or if during the period beginning on the date of 
     publication or service of notice required by subsection (b) 
     for a proposed major rule, more than 100 persons individually 
     contact the agency to request an extension of the period for 
     making submissions under subsection (c) pursuant to the 
     notice, the agency--
       ``(1) shall provide an additional 30-day period for making 
     those submissions; and
       ``(2) may not adopt the rule until after the additional 
     period.''.
       (C) Response to Comments.--Section 553(c) of title 5, 
     United States Code, is amended--
       (i) by inserting ``(1)'' after ``(c)''; and
       (ii) by adding at the end the following:
       ``(2) Each agency shall publish in the Federal Register, 
     with each rule published under section 552(a)(1)(D), 
     responses to the substance of the comments received by the 
     agency regarding the rule.''.
       (5) Section 553 of title 5, United States Code, as amended 
     by section 323, is amended by adding after subsection (h) the 
     following:
       ``(i)(1) Each agency shall, in connection with every major 
     rule, prepare, and, to the extent permitted by law, consider, 
     a regulatory impact analysis. Such analysis may be combined 
     with any regulatory flexibility analysis performed under 
     sections 603 and 604.
       ``(2) Each agency shall initially determine whether a rule 
     it intends to propose or issue is a major rule. The Director 
     shall have authority to order a rule to be treated as a major 
     rule and to require any set of related rules to be considered 
     together as a major rule.
       ``(3) Except as provided in subsection (j), agencies shall 
     prepare--
       ``(A) a preliminary regulatory impact analysis, which shall 
     be transmitted, along with a notice of proposed rulemaking, 
     to the Director at least 60 days prior to the publication of 
     notice of proposed rulemaking, and
       ``(B) a final regulatory impact analysis, which shall be 
     transmitted along with the final rule at least 30 days prior 
     to the publication of a major rule.
       ``(4) Each preliminary and final regulatory impact analysis 
     shall contain the following information:
       ``(A) A description of the potential benefits of the rule, 
     including any beneficial effects that cannot be quantified in 
     monetary terms and the identification of those likely to 
     receive the benefits.
       ``(B) An explanation of the necessity, legal authority, and 
     reasonableness of the rule and a description of the condition 
     that the rule is to address.
       ``(C) A description of the potential costs of the rule, 
     including any adverse effects that cannot be quantified in 
     monetary terms, and the identification of those likely to 
     bear the costs.
       ``(D) An analysis of alternative approaches, including 
     market based mechanisms or other flexible regulatory options 
     that could substantially achieve the same regulatory goal at 
     a lower cost and an explanation of the reasons why such 
     alternative approaches were not adopted, together with a 
     demonstration that the rule provides for the least costly 
     approach.
       ``(E) A statement that the rule does not conflict with, or 
     duplicate, any other rule or a statement of the reasons why 
     such a conflict or duplication exists.
       ``(F) A statement of whether the rule will require on-site 
     inspections or whether persons will be required by the rule 
     to maintain any records which will be subject to inspection, 
     and a statement of whether the rule will require persons to 
     obtain licenses, permits, or other certifications, including 
     specification of any associated fees or fines.
       ``(G) An estimate of the costs to the agency for 
     implementation and enforcement of the rule and of whether the 
     agency can be reasonably expected to implement the rule with 
     the current level of appropriations.
       ``(5)(A) the Director is authorized to review and prepare 
     comments on any preliminary or final regulatory impact 
     analysis, notice of proposed rulemaking, or final rule based 
     on the requirements of this subsection.
       ``(B) Upon the request of the Director, an agency shall 
     consult with the Director concerning the review of a 
     preliminary impact analysis or notice of proposed rulemaking 
     and shall refrain from publishing its preliminary regulatory 
     impact analysis or notice of proposed rulemaking until such 
     review is concluded. The Director's review may not take 
     longer than 90 days after the date of the request of the 
     Director.
       ``(6)(A) An agency may not adopt a major rule unless the 
     final regulatory impact analysis for the rule is approved or 
     commented upon in writing by the Director or by an individual 
     designated by the Director for that purpose.
       ``(B) Upon receiving notice that the Director intends to 
     comment in writing with respect to any final regulatory 
     impact analysis or final rule, the agency shall refrain from 
     publishing its final regulatory impact analysis or final rule 
     until the agency has responded to the Director's comments and 
     incorporated those comments in the agency's response in the 
     rulemaking file.
       ``(7)(A) Except as provided in subparagraph (B), no final 
     major rule subject to this section shall be promulgated 
     unless the agency head publishes in the Federal Register a 
     finding that--
       ``(i) the benefits of the rule justify the costs of the 
     rule; and
       ``(ii) the rule employs to the extent practicable flexible 
     alternatives as set forth in paragraph (4)(D) and adopts the 
     reasonable alternative which has the greater net benefits and 
     achieves the objectives of the statutes.
       ``(B) If, applying the statutory requirements upon which 
     the rule is based, a rule cannot satisfy the criteria of 
     subparagraph (A), the agency head may promulgate the rule if 
     the agency head finds that--
       ``(i) the rule employs to the extent practicable flexible 
     reasonable alternatives of the type described in paragraph 
     (4)(D); and
       ``(ii) the rule adopts the alternative with the least net 
     cost of the reasonable alternatives that achieve the 
     objectives of the statute.
       ``(8) Notwithstanding section 551(16), for purposes of this 
     subsection with regard to any rule proposed or issued by an 
     appropriate Federal banking agency (as that term is defined 
     in section 3(q) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(q)), the National Credit Union Administration, or 
     the Office of Federal Housing Enterprise Oversight, the term 
     `Director' means the head of such agency, Administration, or 
     Office.''.
       (6) Section 553 of title 5, United States Code, as amended 
     in section 324, is amended by adding after subsection (i) the 
     following:
       ``(j) To the extent practicable, the head of an agency 
     shall seek to ensure that any proposed major rule or 
     regulatory impact analysis of such a rule is written in a 
     reasonably 

[[Page H 11966]]
     simple and understandable manner and provides adequate notice of the 
     content of the rule to affected persons.''.
       (7) Section 553 of title 5, United States Code, as amended 
     by section 325, is further amended by adding after subsection 
     (j) the following:
       ``(k)(1) The provisions of this section regarding major 
     rules shall not apply if
       ``(A) the agency for good cause finds that conducting cost-
     benefit analysis is impracticable due to an emergency, or 
     health or safety threat, or a food safety threat that is 
     likely to result in significant harm to the public or natural 
     resources; and
       ``(B) the agency publishes in the Federal Register, 
     together with such finding, a succinct statement of the basis 
     for the finding.
       ``(2) Not later than one year after the promulgation of a 
     final major rule to which this section applies, the agency 
     shall comply with the provisions of this subchapter and, as 
     thereafter necessary, revise the rule.--
       ``(A) any regulation that responds to an emergency 
     situation if such regulation is reported to the Director as 
     soon as is practicable;
       ``(B) any regulation for which consideration under the 
     procedures of this section would conflict with deadlines 
     imposed by statute or by judicial order;
       ``(C) any regulation proposed or issued in connection with 
     the implementation of monetary policy or to ensure the safety 
     and soundness of federally insured depository institutions, 
     any affiliate of such institution, credit unions, or 
     government sponsored housing enterprises regulated by the 
     Office of Federal Housing Enterprise Oversight;
       ``(D) any agency action that the head of the agency 
     certifies is limited to interpreting, implementing, or 
     administering the internal revenue laws of the United States, 
     including any regulation proposed or issued in connection 
     with ensuring the collection of taxes from a subsidiary of a 
     foreign company doing business in the United States; and
       ``(E) any regulation proposed or issued pursuant to section 
     553 of title 5, United States Code, in connection with 
     imposing trade sanctions against any country that engages 
     in illegal trade activities against the United States that 
     are injurious to American technology, jobs, pensions, or 
     general economic well-being.

     A regulation described in subparagraph (B) shall be reported 
     to the Director with a brief explanation of the conflict and 
     the agency, in consultation with the Director, shall, to the 
     extent permitted by statutory or judicial deadlines, adhere 
     to the process of this section.
       ``(2) The Director may in accordance with the purposes of 
     this section exempt any class or category of regulations from 
     any or all requirements of this section.
       ``(3) For purposes of paragraph (1), the term `emergency 
     situation' means a situation that is--
       ``(A) immediately impending and extraordinary in nature, or
       ``(B) demanding attention due to a condition, circumstance, 
     or practice reasonably expected to cause death, serious 
     illness, or severe injury to humans or substantial 
     endangerment to private property or the environment if no 
     action is taken.''.
       (8) The Director of the Office of Management and Budget 
     shall submit a report to the Congress no later than 24 months 
     after the date of the enactment of this Act containing an 
     analysis of rulemaking procedures of Federal agencies and an 
     analysis of the impact of those rulemaking procedures on the 
     regulated public and regulatory process.
       (9) The amendment made by this title shall apply only to 
     final agency rules issued after rulemaking begun after the 
     date of enactment of this Act.
       (10) Chapter 6 of title 5, United States Code, is amended 
     by adding at the end the following:

         ``SUBCHAPTER II--AUTHORITY FOR RULE-MAKING FLEXIBILITY

     ``Sec. 621. Decisional criteria

       ``(a) In General.--No final major rule subject to the 
     provisions of this subchapter that is designed to protect 
     human health, safety or the environment that is proposed or 
     promulgated by the agency after the enactment of this 
     subchapter shall be promulgated unless the agency certifies 
     the following:
       ``(1) That the analyses under section 553(i) are based on 
     objective and unbiased scientific and economic evaluations of 
     all significant and relevant information and risk assessments 
     provided to the agency by interested parties relating to the 
     costs, risks, and risk reduction and other benefits addressed 
     by the rule.
       ``(2) That the incremental risk reduction or other benefits 
     of any strategy chosen will be likely to justify, and be 
     reasonably related to, the incremental costs incurred by 
     State, local, and tribal governments, the Federal Government, 
     and other public and private entities.
       ``(3) That other alternative strategies identified or 
     considered by the agency (including performance-based 
     standards, market-based mechanisms, or other flexible 
     regulatory options that permit the greatest flexibility in 
     achieving the regulatory result that the statutory provision 
     authorizing the rule is designed to produce) were found 
     either (A) to be less cost-effective at achieving a 
     substantially equivalent reduction in risk, or (B) to provide 
     less flexibility to State, local, or tribal governments or 
     regulated entities in achieving the otherwise applicable 
     objectives of the regulation, along with a brief explanation 
     of why alternative strategies that were identified or 
     considered by the agency were found to be less cost-effective 
     or less flexible.
       ``(b) Effect of Decision Criteria.--
       ``(1) In general.--Notwithstanding any other provision of 
     Federal law, the decision criteria of subsection (a) shall 
     supplement and, to the extent there is a conflict, supersede 
     the decision criteria for rulemaking otherwise applicable 
     under the statute pursuant to which the rule is promulgated.
       ``(2) Substantial evidence.--Notwithstanding any other 
     provision of Federal law, no major rule shall be promulgated 
     by any Federal agency pertaining to the protection of health, 
     safety, or the environment unless the requirements of 
     subsection (a) are met and the certifications required 
     therein are supported by substantial evidence of the 
     rulemaking record.
       ``(c) Publication.--The agency shall publish in the Federal 
     Register, along with the final regulation, the certifications 
     required by subsection (a).
       ``(d) Notice.--Where the agency finds a conflict between 
     the decision criteria of this section and the decision 
     criteria of an otherwise applicable statute, the agency shall 
     so notify the Congress in writing.
       ``(e) Major Rule.--For purposes of this section, the term 
     `major rule' does not include any regulation or other action 
     taken by an agency to authorize or approve an individual 
     substance or product, and such term does not include 
     regulations concerning health insurance, health provider 
     services, or health care diagnostic services.

     ``Sec. 622. Deadlines for rulemaking

       ``(a) Statutory.--All deadlines in statutes that require 
     agencies to propose or promulgate any rule subject to 
     subchapter I during the 5-year period beginning on the 
     effective date of this section shall be suspended until the 
     earlier of--
       ``(1) the date on which the requirements of subchapter III 
     are satisfied; or
       ``(2) the date occurring 2 years after the date of the 
     applicable deadline.
       ``(b) Court-Ordered.--All deadlines imposed by any court of 
     the United States that would require an agency to propose or 
     promulgate a rule subject to subchapter I during the 5-year 
     period beginning on the effective date of this section shall 
     be suspended until the earlier of--
       ``(1) the date on which the requirements of subchapter I 
     are satisfied; or
       ``(2) the date occurring 2 years after the date of the 
     applicable deadline.
       ``(c) Obligation To Regulate.--In any case in which the 
     failure to promulgate a rule by a deadline occurring during 
     the 5- year period beginning on the effective date of this 
     section would create an obligation to regulate through 
     individual adjudications, the deadline shall be suspended 
     until the earlier of--
       ``(1) the date on which the requirements of subchapter I 
     are satisfied; or
       ``(2) the date occurring 2 years after the date of the 
     applicable deadline.

     ``Sec. 623. Special rule

       ``Notwithstanding any other provision of the Comprehensive 
     Regulatory Reform Act of 1995, or the amendments made by such 
     Act, for purposes of this subchapter and subchapter IV, the 
     head of each appropriate Federal banking agency (as defined 
     in section 3(q) of the Federal Deposit Insurance Act), the 
     National Credit Union Administration, the Federal Housing 
     Finance Board, the Office of Federal Housing Enterprise 
     Oversight, and the Farm Credit Administration, shall have 
     authority with respect to such agency that otherwise would 
     be provided under such subchapters to the Director, a 
     designee of the President, Vice President, or any officer 
     designated or delegated with authority under such 
     subchapters.

     ``Sec. 624. Petition for alternative method of compliance

       ``(a) Except as provided in subsection (e), or unless 
     prohibited by the statute authorizing the rule, any person 
     subject to a major rule may petition the relevant agency to 
     modify or waive the specific requirements of the major rule 
     (or any portion thereof) and to authorize such person to 
     demonstrate compliance through alternative means not 
     otherwise permitted by the major rule. The petition shall 
     identify with reasonable specificity the requirements for 
     which the waiver is sought and the alternative means of 
     compliance being proposed.
       ``(b) The agency shall grant the petition if the petition 
     shows that there is a reasonable likelihood that the proposed 
     alternative means of compliance--
       ``(1) would achieve the identified benefits of the major 
     rule with at least an equivalent level of protection of 
     health, safety, and the environment as would be provided by 
     the major rule; and
       ``(2) would not impose an undue burden on the agency that 
     would be responsible for enforcing such alternative means of 
     compliance.
       ``(c) A decision to grant or to deny a petition under this 
     subsection shall be made not later than 180 days after the 
     petition is submitted, but in no event shall agency action 
     taken pursuant to this section be subject to judicial review.
       ``(d) Following a decision to grant or deny a petition 
     under this section, no further petition for such rule, 
     submitted by the same person, shall be granted unless such 
     petition pertains to a different facility or installation 

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     owned or operated by such person or unless such petition is based on a 
     significant change in a fact, circumstance, or provision of 
     law underlying or otherwise related to the rule occurring 
     since the initial petition was granted or denied, that 
     warrants the granting of such petition.
       ``(e) If the statute authorizing the rule which is the 
     subject of the petition provides procedures or standards for 
     an alternative method of compliance the petition shall be 
     reviewed solely under the terms of the statute.''.

                   ``SUBCHAPTER III--RISK ASSESSMENTS

     ``Sec. 631. Short title

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

     ``Sec. 632. Purposes

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

     ``Sec. 633. Effective date; applicability; savings provisions

       ``(a) Effective Date.--Except as otherwise specifically 
     provided in this subchapter, the provisions of 
     this subchapter shall take effect 18 months after the date 
     of enactment of this subchapter.
       ``(b) Applicability.--
       ``(1) In general.--Except as provided in paragraph (3), 
     this subchapter applies to all significant risk assessment 
     documents and significant risk characterization documents, as 
     defined in paragraph ``(2).
       ``(2) Significant risk assessment document or significant 
     risk characterization document.--(A) As used in this 
     subchapter, the terms `significant risk assessment document' 
     and `significant risk characterization document' include, at 
     a minimum, risk assessment documents or risk characterization 
     documents prepared by or on behalf of a covered Federal 
     agency in the implementation of a regulatory program designed 
     to protect human health, safety, or the environment, used as 
     a basis for one of the items referred to in subparagraph (B), 
     and--
       ``(i) included by the agency in that item; or
       ``(ii) inserted by the agency in the administrative record 
     for that item.
       ``(B) The items referred to in subparagraph (A) are the 
     following:
       ``(i) Any proposed or final major rule, including any 
     analysis or certification under subchapter II, promulgated as 
     part of any Federal regulatory program designed to protect 
     human health, safety, or the environment.
       ``(ii) Any proposed or final environmental clean-up plan 
     for a facility or Federal guidelines for the issuance of any 
     such plan. As used in this clause, the term `environmental 
     clean-up' means a corrective action under the Solid Waste 
     Disposal Act, a removal or remedial action under the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980, and any other environmental 
     restoration and waste management carried out by or on behalf 
     of a covered Federal agency with respect to any substance 
     other than municipal waste.
       ``(iii) Any proposed or final permit condition placing a 
     restriction on facility siting or operation under Federal 
     laws administered by the Environmental Protection Agency or 
     the Department of the Interior. Nothing in this section (iii) 
     shall apply to the requirements of section 404 of the Clean 
     Water Act.
       ``(iv) Any report to Congress.
       ``(v) Any regulatory action to place a substance on any 
     official list of carcinogens or toxic or hazardous substances 
     or to place a new health effects value on such list, 
     including the Integrated Risk Information System Database 
     maintained by the Environmental Protection Agency.
       ``(vi) Any guidance, including protocols of general 
     applicability, establishing policy regarding risk assessment 
     or risk characterization.
       ``(C) The terms `significant risk assessment document' and 
     `significant risk characterization document' shall also 
     include the following:
       ``(i) Any such risk assessment and risk characterization 
     documents provided by a covered Federal agency to the public 
     and which are likely to result in an annual effect on the 
     economy of $75,000,000 or more.
       ``(ii) Environmental restoration and waste management 
     carried out by or on behalf of the Department of Defense with 
     respect to any substance other than municipal waste.
       ``(D) Within 15 months after the date of the enactment of 
     this subchapter, each covered Federal agency administering a 
     regulatory program designed to protect human health, safety, 
     or the environment shall promulgate a rule establishing 
     those additional categories, if any, of risk assessment 
     and risk characterization documents prepared by or on 
     behalf of the covered Federal agency that the agency will 
     consider significant risk assessment documents or 
     significant risk characterization documents for purposes 
     of this subchapter. In establishing such categories, the 
     head of the agency shall consider each of the following:
       ``(i) The benefits of consistent compliance by documents of 
     the covered Federal agency in the categories.
       ``(ii) The administrative burdens of including documents in 
     the categories.
       ``(iii) The need to make expeditious administrative 
     decisions regarding documents in the categories.
       ``(iv) The possible use of a risk assessment or risk 
     characterization in any compilation of risk hazards or health 
     or environmental effects prepared by an agency and commonly 
     made available to, or used by, any Federal, State, or local 
     government agency.
       ``(v) Such other factors as may be appropriate.
       ``(E)(i) Not later than 18 months after the date of the 
     enactment of this subchapter, the President, acting through 
     the Director of the Office of Management and Budget, shall 
     determine whether any other Federal agencies should be 
     considered covered Federal agencies for purposes of this 
     subchapter. Such determination, with respect to a particular 
     Federal agency, shall be based on the impact of risk 
     assessment documents and risk characterization documents on--
       ``(I) regulatory programs administered by that agency; and
       ``(II) the communication of risk information by that agency 
     to the public.

     The effective date of such a determination shall be no later 
     than 6 months after the date of the determination.
       ``(ii) Not later than 15 months after the President, acting 
     through the Director of the Office of Management and Budget, 
     determines pursuant to clause (i) that a Federal agency 
     should be considered a covered Federal agency for purposes of 
     this subchapter, the head of that agency shall promulgate a 
     rule pursuant to subparagraph (D) to establish additional 
     categories of risk assessment and risk characterization 
     documents described in that subparagraph.
       ``(3) Exceptions.--(A) This subchapter does not apply to 
     risk assessment or risk characterization documents containing 
     risk assessments or risk characterizations performed with 
     respect to the following:
       ``(i) A screening analysis, where appropriately labeled as 
     such, including a screening analysis for purposes of product 
     regulation or premanufacturing notices.
       ``(ii) Any health, safety, or environmental inspections.
       ``(iii) The sale or lease of Federal resources or 
     regulatory activities that directly result in the collection 
     of Federal receipts.
       ``(B) No analysis shall be treated as a screening analysis 
     for purposes of subparagraph (A) if the results of such 
     analysis are used as the basis for imposing restrictions on 
     substances or activities.
       ``(C) The risk assessment principle set forth in this 
     634(b)(1) need not apply to any risk assessment or risk 
     characterization document described in clause (iii) of 
     paragraph (2)(B). The risk characterization and 
     communication principle set forth in section 635(4) need 
     not apply to any risk assessment or risk characterization 
     document described in clause (v) or (vi) of paragraph 
     (2)(B).
       ``(c) Savings Provisions.--The provisions of this 
     subchapter shall be supplemental to any other provisions of 
     law relating to risk assessments and risk characterizations, 
     except that nothing in this subchapter shall be construed to 
     modify any statutory standard or statutory requirement 
     designed to protect health, safety, or the environment. 
     Nothing in this subchapter shall be interpreted to preclude 
     the consideration of any data or the calculation of any 
     estimate to more fully describe risk or provide examples of 
     scientific uncertainty or variability. Nothing in this 
     subchapter shall be construed to require the disclosure of 
     any trade secret or other confidential information.

     ``Sec. 634. Principles for risk assessment

       ``(a) In General.--The head of each covered Federal agency 
     shall apply the principles set forth in subsection (b) in 
     order to assure that significant risk assessment documents 
     and all of their components distinguish scientific findings 
     from other considerations and are, to the extent feasible, 
     scientifically objective, unbiased, and inclusive of all 
     relevant data and rely, to the extent available and 
     practicable, on scientific findings. Discussions or 
     explanations required under this section need not be repeated 
     in each risk assessment document as long as there is a 
     reference to the relevant discussion or explanation in 
     another agency document which is available to the public.
       ``(b) Principles.--The principles to be applied are as 
     follows:
       ``(1) When discussing human health risks, a significant 
     risk assessment document shall contain a discussion of both 
     relevant laboratory and relevant epidemiological data of 
     sufficient quality which finds, or fails to find, a 
     correlation between health risks and a potential toxin or 
     activity. Where conflicts among such data appear to exist, or 
     where animal data is used as a basis to assess human health, 
     the significant risk assessment document shall, to the extent 
     feasible and appropriate, include discussion of possible 
     reconciliation of conflicting information, and as relevant, 
     differences in study designs, comparative physiology, routes 
     of exposure, bioavailability, pharmacokinetics, and any other 
     relevant factor, including the 

[[Page H 11968]]
     sufficiency of basic data for review. The discussion of possible 
     reconciliation should indicate whether there is a biological 
     basis to assume a resulting harm in humans. Animal data shall 
     be reviewed with regard to its relevancy to humans.
       ``(2) Where a significant risk assessment document involves 
     selection of any significant assumption, inference, or model, 
     the document shall, to the extent feasible--
       ``(A) present a representative list and explanation of 
     plausible and alternative assumptions, inferences, or models;
       ``(B) explain the basis for any choices;
       ``(C) identify any policy or value judgments;
       ``(D) fully describe any model used in the risk assessment 
     and make explicit the assumptions incorporated in the model; 
     and
       ``(E) indicate the extent to which any significant model 
     has been validated by, or conflicts with, empirical data.

     ``Sec. 635. Principles for risk characterization and 
       communication

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

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

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

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

     ``Sec. 636. Recommendations or classifications by a non-
       united states-based entity

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

     ``Sec. 637. Guidelines and report

       ``(a) Guidelines.--Within 15 months after the date of 
     enactment of this subchapter, the President shall issue 
     guidelines for Federal agencies consistent with the risk 
     assessment and characterization principles set forth in 
     sections 634 and 635 and shall provide a format for 
     summarizing risk assessment results. In addition, such 
     guidelines shall include guidance on at least the following 
     subjects: criteria for scaling animal studies to assess risks 
     to human health; use of different types of dose-response 
     models; thresholds; definitions, use, and interpretations of 
     the maximum tolerated dose; weighting of evidence with 
     respect to extrapolating human health risks from sensitive 
     species; evaluation of benign tumors, and evaluation of 
     different human health endpoints.
       ``(b) Report.--Within 3 years after the date of the 
     enactment of this subchapter, each covered Federal agency 
     shall provide a report to the Congress evaluating the 
     categories of policy and value judgments identified under 
     subparagraph (C) of section 634(b)(2).
       ``(c) Public Comment and Consultation.--The guidelines and 
     report under this section, shall be developed after notice 
     and opportunity for public comment, and after consultation 
     with representatives of appropriate State, local, and tribal 
     governments, and such other departments and agencies, 
     offices, organizations, or persons as may be advisable.
       ``(d) Review.--The President shall review and, where 
     appropriate, revise the guidelines published under this 
     section at least every 4 years.

     ``Sec. 638. Research and training in risk assessment

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

     ``Sec. 639. Study of comparative risk analysis

       ``(a) In General.--(1) The Director of the Office of 
     Management and Budget, in consultation with the Office of 
     Science and Technology Policy, shall conduct, or provide for 
     the conduct of, a study using comparative risk analysis to 
     rank health, safety, and environmental risks and to provide a 
     common basis for evaluating strategies for reducing or 
     preventing those risks. The goal of the study shall be to 
     improve methods of comparative risk analysis.
       ``(2) Not later than 90 days after the date of the 
     enactment of this subchapter, the Director, in collaboration 
     with the heads of appropriate Federal agencies, shall enter 
     into a contract with the National Research Council to provide 
     technical guidance on approaches to using comparative risk 
     analysis and other considerations in setting health, safety, 
     and environmental risk reduction priorities.
       ``(b) Scope of Study.--The study shall have sufficient 
     scope and breadth to evaluate 

[[Page H 11969]]
     comparative risk analysis and to test approaches for improving 
     comparative risk analysis and its use in setting priorities 
     for health, safety, and environmental risk reduction. The 
     study shall compare and evaluate a range of diverse health, 
     safety, and environmental risks.
       ``(c) Study Participants.--In conducting the study, the 
     Director shall provide for the participation of a range of 
     individuals with varying backgrounds and expertise, both 
     technical and nontechnical, comprising broad representation 
     of the public and private sectors.
       ``(d) Duration.--The study shall begin within 180 days 
     after the date of the enactment of this subchapter and 
     terminate within 2 years after the date on which it began.
       ``(e) Recommendations for Improving Comparative Risk 
     Analysis and Its Use.--Not later than 90 days after the 
     termination of the study, the Director shall submit to the 
     Congress the report of the National Research Council with 
     recommendations regarding the use of comparative risk 
     analysis and ways to improve the use of comparative risk 
     analysis for decision-making in appropriate Federal agencies.

     ``Sec. 639a. Definitions

       For purposes of this subchapter:
       ``(1) Risk assessment document.--The term ``risk assessment 
     document'' means a document containing the explanation of how 
     hazards associated with a substance, activity, or 
     condition have been identified, quantified, and assessed. 
     The term also includes a written statement accepting the 
     findings of any such document.
       ``(2) Risk characterization document.--The term ``risk 
     characterization document'' means a document quantifying or 
     describing the degree of toxicity, exposure, or other risk 
     posed by hazards associated with a substance, activity, or 
     condition to which individuals, populations, or resources are 
     exposed. The term also includes a written statement accepting 
     the findings of any such document.
       ``(3) Best estimate.--The term ``best estimate'' means a 
     scientifically appropriate estimate which is based, to the 
     extent feasible, on one of the following:
       ``(A) Central estimates of risk using the most plausible 
     assumptions.
       ``(B) An approach which combines multiple estimates based 
     on different scenarios and weighs the probability of each 
     scenario.
       ``(C) Any other methodology designed to provide the most 
     unbiased representation of the most plausible level of risk, 
     given the current scientific information available to the 
     Federal agency concerned.
       ``(4) Substitution risk.--The term ``substitution risk'' 
     means a potential risk to human health, safety, or the 
     environment from a regulatory alternative designed to 
     decrease other risks.
       ``(5) Covered federal agency.--The term ``covered Federal 
     agency'' means each of the following:
       ``(A) The Environmental Protection Agency.
       ``(B) The Occupational Safety and Health Administration.
       ``(C) The Department of Transportation (including the 
     National Highway Transportation Safety Administration).
       ``(D) The Food and Drug Administration.
       ``(E) The Department of Energy.
       ``(F) The Department of the Interior.
       ``(G) The Department of Agriculture.
       ``(H) The Consumer Product Safety Commission.
       ``(I) The National Oceanic and Atmospheric Administration.
       ``(J) The United States Army Corps of Engineers.
       ``(K) The Mine Safety and Health Administration.
       ``(L) The Nuclear Regulatory Commission.
       ``(M) Any other Federal agency considered a covered Federal 
     agency pursuant to section 413(b)(2)(E).
       ``(6) Federal agency.--The term ``Federal agency'' means an 
     executive department, military department, or independent 
     establishment as defined in part I of title 5 of the United 
     States Code, except that such term also includes the Office 
     of Technology Assessment.
       ``(7) Document.--The term ``document'' includes material 
     stored in electronic or digital form.

     ``Sec. 639b. Peer review program

       ``(a) Establishment.--For regulatory programs designed to 
     protect human health, safety, or the environment, the head of 
     each Federal agency shall develop a systematic program for 
     independent and external peer review required by subsection 
     (b). Such program shall be applicable across the agency and--
       ``(1) shall provide for the creation of peer review panels 
     consisting of experts and shall be broadly representative and 
     balanced and to the extent relevant and appropriate, may 
     include representatives of State, local, and tribal 
     governments, small businesses, other representatives of 
     industry, universities, agriculture, labor, consumers, 
     conservation organizations, or other public interest groups 
     and organizations;
       ``(2) may provide for differing levels of peer review and 
     differing numbers of experts on peer review panels, depending 
     on the significance or the complexity of the problems or the 
     need for expeditiousness;
       ``(3) shall not exclude peer reviewers with substantial and 
     relevant expertise merely because they represent entities 
     that may have a potential interest in the outcome, provided 
     that interest is fully disclosed to the agency and in the 
     case of a regulatory decision affecting a single entity, no 
     peer reviewer representing such entity may be included on the 
     panel;
       ``(4) may provide specific and reasonable deadlines for 
     peer review panels to submit reports under subsection (c); 
     and
       ``(5) shall provide adequate protections for confidential 
     business information and trade secrets, including requiring 
     peer reviewers to enter into confidentiality agreements.
       ``(b) Requirement for Peer Review.--In connection with any 
     rule that is likely to result in an annual increase in costs 
     of $100,000,000 or more (other than any rule or other action 
     taken by an agency to authorize or approve any individual 
     substance or product), each Federal agency shall provide 
     for peer review in accordance with this section of any 
     risk assessment or cost analysis which forms the basis for 
     such rule or of any analysis under section 431(a). In 
     addition, the Director of the Office of Management and 
     Budget may order that peer review be provided for any 
     major risk assessment or cost assessment that is likely to 
     have a significant impact on public policy decisions.
       ``(c) Contents.--Each peer review under this section shall 
     include a report to the Federal agency concerned with respect 
     to the scientific and economic merit of data and methods used 
     for the assessments and analyses.
       ``(d) Response to Peer Review.--The head of the Federal 
     agency shall provide a written response to all significant 
     peer review comments.
       ``(e) Availability to Public.--All peer review comments or 
     conclusions and the agency's responses shall be made 
     available to the public and shall be made part of the 
     administrative record.
       ``(f) Previously Reviewed Data and Analysis.--No peer 
     review shall be required under this section for any data or 
     method which has been previously subjected to peer review or 
     for any component of any analysis or assessment previously 
     subjected to peer review.
       ``(g) National Panels.--The President shall appoint 
     National Peer Review Panels to annually review the risk 
     assessment and cost assessment practices of each Federal 
     agency for programs designed to protect human health, safety, 
     or the environment. The Panel shall submit a report to the 
     Congress no less frequently than annually containing the 
     results of such review.

     ``Sec. 639c. Petition for review of a major free-standing 
       risk assessment

       ``(a) Any interested person may petition an agency to 
     conduct a scientific review of a risk assessment conducted or 
     adopted by the agency, except for a risk assessment used as 
     the basis for a major rule or a site-specific risk 
     assessment.
       ``(b) The agency shall utilize external peer review, as 
     appropriate, to evaluate the claims and analyses in the 
     petition, and shall consider such review in making its 
     determination of whether to grant the petition.
       ``(c) The agency shall grant the petition if the petition 
     establishes that there is a reasonable likelihood that--
       ``(1)(A) the risk assessment that is the subject of the 
     petition was carried out in a manner substantially 
     inconsistent with the principles in section 633; or
       ``(B) the risk assessment that is the subject of the 
     petition does not take into account material significant new 
     scientific data and scientific understanding;
       ``(2) the risk assessment that is the subject of the 
     petition contains significantly different results than if it 
     had been properly conducted pursuant to subchapter III; and
       ``(3) a revised risk assessment will provide the basis for 
     reevaluating an agency determination of risk, and such 
     determination currently has an effect on the United States 
     economy equivalent to that of major rule.
       ``(d) A decision to grant, or final action to deny, a 
     petition under this subsection shall be made not later than 
     180 days after the petition is submitted.
       ``(e) If the agency grants the petition, it shall complete 
     its review of the risk assessment not later than 1 year after 
     its decision to grant the petition. If the agency revises the 
     risk assessment, in response to its review, it shall do so in 
     accordance with section 633.

     ``Sec. 639d. Risk-based priorities

       ``(a) Purposes.--The purposes of this section are to--
       ``(1) encourage Federal agencies engaged in regulating 
     risks to human health, safety, and the environment to achieve 
     the greatest risk reduction at the least cost practical;
       ``(2) promote the coordination of policies and programs to 
     reduce risks to human health, safety, and the environment; 
     and
       ``(3) promote open communication among Federal agencies, 
     the public, the President, and Congress regarding 
     environmental, health, and safety risks, and the prevention 
     and management of those risks.
       ``(b) Definitions.--For the purposes of this section:
       ``(1) Comparative Risk Analysis.--The term `comparative 
     risk analysis' means a process to systematically estimate, 
     compare, and rank the size and severity of risks to provide a 
     common basis for evaluating strategies for reducing or 
     preventing those risks.
       ``(2) Covered agency.--The term `covered agency' means each 
     of the following:
       ``(A) The Environmental Protection Agency.

[[Page H 11970]]

       ``(B) The Department of Labor.
       ``(C) The Department of Transportation.
       ``(D) The Food and Drug Administration.
       ``(E) The Department of Energy.
       ``(F) The Department of the Interior.
       ``(G) The Department of Agriculture.
       ``(H) The Consumer Product Safety Commission.
       ``(I) The National Oceanic and Atmospheric Administration.
       ``(J) The United States Army Corps of Engineers.
       ``(K) The Nuclear Regulatory Commission.
       ``(3) Effect.--The term `effect' means a deleterious change 
     in the condition of--
       ``(A) a human or other living thing (including death, 
     cancer, or other chronic illness, decreased reproductive 
     capacity, or disfigurement); or
       ``(B) an inanimate thing important to human welfare 
     (including destruction, degeneration, the loss of intended 
     function, and increased costs for maintenance).
       ``(4) Irreversibility.--The term `irreversibility' means 
     the extent to which a return to conditions before the 
     occurrence of an effect are either very slow or will never 
     occur.
       ``(5) Likelihood.--The term `likelihood' means the 
     estimated probability that an effect will occur.
       ``(6) Magnitude.--The term `magnitude' means the number of 
     individuals or the quantity of ecological resources or other 
     resources that contribute to human welfare that are affected 
     by exposure to a stressor.
       ``(7) Seriousness.--The term `seriousness' means the 
     intensity of effect, the likelihood, the irreversibility, and 
     the magnitude.
       ``(c) Department and Agency Program Goals.--
       ``(1) Setting Priorities.--In exercising authority under 
     applicable laws protecting human health, safety, or the 
     environment, the head of each covered agency shall set 
     priorities for the use of resources available under those 
     laws to address those risks to human health, safety, and the 
     environment that--
       ``(A) the covered agency determines to be most serious; and
       ``(B) can be addressed in a cost-effective manner, with the 
     goal of achieving the greatest overall net reduction in risks 
     with the public and private sector resources expended.
       ``(2) Determining the most serious risks.--In identifying 
     the greatest risks under paragraph (1) of this subsection, 
     each covered agency shall consider, at a minimum--
       ``(A) the likelihood, irreversibility, and severity of the 
     effect; and
       ``(B) the number and classes of individuals potentially 
     affected,

     and shall explicitly take into account the results of the 
     comparative risk analysis conducted under subsection (d) of 
     this section.
       ``(3) OMB review.--The covered agency's determinations of 
     the most serious risks for purposes of setting priorities 
     shall be reviewed and approved by the Director of the Office 
     of Management and Budget before submission of the covered 
     agency's annual budget requests to Congress.
       ``(4) Incorporating risk-based priorities into budget and 
     planning.--The head of each covered agency shall incorporate 
     the priorities identified under paragraph (1) into the agency 
     budget, strategic planning, regulatory agenda, enforcement, 
     and research activities. When submitting its budget request 
     to Congress and when announcing its regulatory agenda in the 
     Federal Register, each covered agency shall identify the 
     risks that the covered agency head has determined are the 
     most serious and can be addressed in a cost-effective manner 
     under paragraph (1), the basis for that determination, and 
     explicitly identify how the covered agency's requested budget 
     and regulatory agenda reflect those priorities.
       ``(5) Effective date.--This subsection shall take effect 12 
     months after the date of enactment of this Act.
       ``(d) Comparative Risk Analysis.--
       ``(1) Requirement.--
       (A)(i) No later than 6 months after the effective date of 
     this Act, the Director of the Office of Management and Budget 
     shall enter into appropriate arrangements with a nationally 
     recognized scientific institution or scholarly organization--
       ``(I) to conduct a study of the methodologies for using 
     comparative risk to rank dissimilar human health, safety, and 
     environmental risks; and
       ``(II) to conduct a comparative risk analysis.
       ``(ii) The comparative risk analysis shall compare and 
     rank, to the extent feasible, human health, safety, and 
     environmental risks potentially regulated across the spectrum 
     of programs administered by all covered agencies.
       ````(B) The Director shall consult with the Office of 
     Science and Technology Policy regarding the scope of the 
     study and the conduct of the comparative risk analysis.
       ``(C) Nothing in this subsection should be construed to 
     prevent the Director from entering into a sole-source 
     arrangement with a nationally recognized scientific 
     institution or scholarly organization.
       ``(2) Criteria.--The Director shall ensure that the 
     arrangement under paragraph (1) provides that--
       ``(A) the scope and specificity of the analysis are 
     sufficient to provide the President and agency heads guidance 
     in allocating resources across agencies and among programs in 
     agencies to achieve the greatest degree of risk prevention 
     and reduction for the public and private resources expended;
       ``(B) the analysis is conducted through an open process, 
     including opportunities for the public to submit views, data, 
     and analyses and to provide public comment on the results 
     before making them final;
       ``(C) the analysis is conducted by a balanced group of 
     individuals with relevant expertise, including toxicologists, 
     biologists, engineers, and experts in medicine, industrial 
     hygiene, and environmental effects, and the selection of 
     members for such study shall be at the sole discretion of the 
     scientific institution or scholarly organization;
       ``(D) the analysis is conducted, to the extent feasible and 
     relevant, consistent with the risk assessment and risk 
     characterization principles in section 633 of this 
     subchapter;
       ``(E) the methodologies and principal scientific 
     determinations made in the analysis are subjected to 
     independent peer review consistent with section 633(g), and 
     the conclusions of the peer review are made publicly 
     available as part of the final report required under 
     subsection (e); and
       ``(F) the results are presented in a manner that 
     distinguishes between the scientific conclusions and any 
     policy or value judgments embodied in the comparisons.
       ``(3) Completion and review.--No later than 3 years after 
     the effective date of this Act, the comparative risk analysis 
     required under paragraph (1) shall be completed. The 
     comparative risk analysis shall be reviewed and revised at 
     least every 5 years thereafter for a minimum of 15 years 
     following the release of the first analysis. The Director 
     shall arrange for such review and revision by an accredited 
     scientific body in the same manner as provided under 
     paragraphs (1) and (2).
       ``(4) Study.--The study of methodologies provided under 
     paragraph (1) shall be conducted as part of the first 
     comparative risk analysis and shall be completed no later 
     than 180 days after the completion of that analysis. The goal 
     of the study shall be to develop and rigorously test methods 
     of comparative risk analysis. The study shall have sufficient 
     scope and breadth to test approaches for improving 
     comparative risk analysis and its use in setting priorities 
     for human health, safety, and environmental risk prevention 
     and reduction.
       ``(5) Technical guidance.--No later than 180 days after the 
     effective date of this Act, the Director, in collaboration 
     with other heads of covered agencies shall enter into a 
     contract with the National Research Council to provide 
     technical guidance to agencies on approaches to using 
     comparative risk analysis in setting human health, safety, 
     and environmental priorities to assist agencies in complying 
     with subsection (c) of this section.
       ``(e) Reports and recommendations to congress and the 
     president.--No later than 24 months after the effective date 
     of this Act, each covered agency shall submit a report to 
     Congress and the President--
       ``(1) detailing how the agency has complied with subsection 
     (c) and describing the reason for any departure from the 
     requirement to establish priorities to achieve the greatest 
     overall net reduction in risk;
       ``(2) recommending--
       ``(A) modification, repeal, or enactment of laws to reform, 
     eliminate, or enhance programs or mandates relating to human 
     health, safety, or the environment; and
       ``(B) modification or elimination of statutory or 
     judicially mandated deadlines,that would assist the covered 
     agency to set priorities in activities to address the risks 
     to human health, safety, or the environment in a manner 
     consistent with the requirements of subsection (c)(1);
       ``(3) evaluating the categories of policy and value 
     judgment used in risk assessment, risk characterization, or 
     cost-benefit analysis; and
       ``(4) discussing risk assessment research and training 
     needs, and the agency's strategy and schedule for meeting 
     those needs.
       ``(f) Savings provision and judicial review.--
       ``(1) In general.--Nothing in this section shall be 
     construed to modify any statutory standard or requirement 
     designed to protect human health, safety, or the environment.
       ``(2) Judicial review.--Compliance or noncompliance by an 
     agency with the provisions of this section shall not be 
     subject to judicial review.
       ``(3) Agency analysis.--Any analysis prepared under this 
     section shall not be subject to judicial consideration 
     separate or apart from the requirement, rule, program, or law 
     to which it relates. When an action for judicial review of a 
     covered agency action is instituted, any analysis for, or 
     relating to, the action shall constitute part of the whole 
     record of agency action for the purpose of judicial review 
     of the action and shall, to the extent relevant, be 
     considered by a court in determining the legality of the 
     covered agency action.

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

     ``Sec. 641. Procedures

       ``(a) In General.--The Director or a designee of the 
     President shall--
       ``(1) establish and, as appropriate, revise procedures for 
     agency compliance with this chapter; and
       ``(2) monitor, review, and ensure agency implementation of 
     such procedures.
       ``(b) Public Comment.--Procedures established pursuant to 
     subsection (a) shall only 

[[Page H 11971]]
     be implemented after opportunity for public comment. Any such 
     procedures shall be consistent with the prompt completion of 
     rulemaking proceedings.
       ``(c) Time for Review.--
       ``(1) If procedures established pursuant to subsection (a) 
     include review of any initial or final analyses of a rule 
     required under chapter 6, the time for any such review of any 
     initial analysis shall not exceed 90 days following the 
     receipt of the analysis by the Director, or a designee of the 
     President.
       ``(2) The time for review of any final analysis required 
     under chapter 6 shall not exceed 90 days following the 
     receipt of the analysis by the Director, a designee of the 
     President.
       ``(3)(A) The times for each such review may be extended for 
     good cause by the President or by an officer to whom the 
     President has delegated his authority pursuant to section 642 
     for an additional 45 days. At the request of the head of an 
     agency, the President or such an officer may grant an 
     additional extension of 45 days.
       ``(B) Notice of any such extension, together with a 
     succinct statement of the reasons therefor, shall be inserted 
     in the rulemaking file.

     ``Sec. 642. Delegation of authority

       ``(a) In General.--The President may delegate the authority 
     granted by this subchapter to an officer within the Executive 
     Office of the President whose appointment has been subject to 
     the advice and consent of the Senate.
       ``(b) Notice.--Notice of any delegation, or any revocation 
     or modification thereof shall be published in the Federal 
     Register.

     ``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 section 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 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 such review.

     ``Sec. 644. Judicial review

       ``The exercise of the authority granted under this 
     subchapter by the Director, the President, or by an officer 
     to whom such authority has been delegated under section 642 
     and agency compliance or noncompliance with the procedure 
     under section 641 shall not be subject to judicial review.

     ``Sec. 645. Regulatory agenda

       ``The head of each agency shall provide, as part of the 
     semiannual regulatory agenda published under section 602--
       ``(1) a list of risk assessments subject to subsection 632 
     (a) or (b)(1) under preparation or planned by the agency;
       ``(2) a brief summary of relevant issues addressed or to be 
     addressed by each listed risk assessment;
       ``(3) an approximate schedule for completing each listed 
     risk assessment;
       ``(4) an identification of potential rules, guidance, or 
     other agency actions supported or affected by each listed 
     risk assessment; and
       ``(5) the name, address, and telephone number of an agency 
     official knowledgeable about each listed risk assessment.''.
       (b) Regulatory Flexibility Analysis.--
       (1) Judicial Review.--
       (A) Amendment.--Section 611 of title 5, United States Code, 
     is amended to read as follows:

     ``Sec. 611. Judicial review

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

     An affected small entity may petition for the judicial review 
     of such certification or analysis in accordance with the 
     terms of this subsection. A court having jurisdiction to 
     review such rule for compliance with the provisions of 
     section 553 or under any other provision of law shall have 
     jurisdiction to review such certification or analysis. In the 
     case where an agency delays the issuance of a final 
     regulatory flexibility analysis pursuant to section 608(b), a 
     petition for judicial review under this subsection shall be 
     filed not later than one year, notwithstanding any other 
     provision of law, after the date the analysis is made 
     available to the public.
       ``(2) For purposes of this subsection, the term `affected 
     small entity' means a small entity that is or will be 
     adversely affected by the final rule.
       ``(3) Nothing in this subsection shall be construed to 
     affect the authority of any court to stay the effective date 
     of any rule or provision thereof under any other provision of 
     law.
       ``(4)(A) In the case where the agency certified that such 
     rule would not have a significant economic impact on a 
     substantial number of small entities, the court may order the 
     agency to prepare a final regulatory flexibility analysis 
     pursuant to section 604 if the court determines, on the basis 
     of the rulemaking record, that the certification was 
     arbitrary, capricious, an abuse of discretion, or otherwise 
     not in accordance with law.
       ``(B) In the case where the agency prepared a final 
     regulatory flexibility analysis, the court may order the 
     agency to take corrective action consistent with the 
     requirements of section 604 if the court determines, on the 
     basis of the rulemaking record, that the final regulatory 
     flexibility analysis was prepared by the agency without 
     observance of procedure required by section 604.
       ``(5) If, by the end of the 90-day period beginning on the 
     date of the order of the court pursuant to paragraph (4) (or 
     such longer period as the court may provide), the agency 
     fails, as appropriate--
       ``(A) to prepare the analysis required by section 604; or
       ``(B) to take corrective action consistent with the 
     requirements of section 604,
     the court may stay the rule or grant such other relief as it 
     deems appropriate.
       ``(6) In making any determination or granting any relief 
     authorized by this subsection, the court shall take due 
     account of the rule of prejudicial error.
       ``(b) In an action for the judicial review of a rule, any 
     regulatory flexibility analysis for such rule (including an 
     analysis prepared or corrected pursuant to subsection (a)(4)) 
     shall constitute part of the whole record of agency action in 
     connection with such review.
       ``(c) Nothing in this section bars judicial review of any 
     other impact statement or similar analysis required by any 
     other law if judicial review of such statement or analysis is 
     otherwise provided by law.''.
       (B) Effective date.--The amendment made by subsection (a) 
     shall apply only to final agency rules issued after the date 
     of enactment of this division.
       (2) Rules Commented on by SBA Chief Counsel for advocacy.--
       (A) In general.--Section 612 of title 5, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(d) Action by the SBA Chief Counsel for Advocacy.--
       ``(1) Transmittal of proposed rules and initial regulatory 
     flexibility analysis to sba chief counsel for advocacy.--On 
     or before the 30th day preceding the date of publication by 
     an agency of general notice of proposed rulemaking for a 
     rule, the agency shall transmit to the Chief Counsel for 
     Advocacy of the Small Business Administration--
       ``(A) a copy of the proposed rule; and
       ``(B)(i) a copy of the initial regulatory flexibility 
     analysis for the rule if required under section 603; or
       ``(ii) a determination by the agency that an initial 
     regulatory flexibility analysis is not required for the 
     proposed rule under section 603 and an explanation for the 
     determination.
       ``(2) Statement of effect.--On or before the 15th day 
     following receipt of a proposed rule and initial regulatory 
     flexibility analysis from an agency under paragraph (1), the 
     Chief Counsel for Advocacy may transmit to the agency a 
     written statement of the effect of the proposed rule on small 
     entities.
       ``(3) Response.--If the Chief Counsel for Advocacy 
     transmits to an agency a statement of effect on a proposed 
     rule in accordance with paragraph (2), the agency shall 
     publish the statement, together with the response of the 
     agency to the statement, in the Federal Register at the time 
     of publication of general notice of proposed rulemaking for 
     the rule.

[[Page H 11972]]

       ``(4) Special rule.--Any proposed rules issued by an 
     appropriate Federal banking agency (as that term is defined 
     in section 3(q) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(q)), the National Credit Union Administration, or 
     the Office of Federal Housing Enterprise Oversight, in 
     connection with the implementation of monetary policy or to 
     ensure the safety and soundness of federally insured 
     depository institutions, any affiliate of such an 
     institution, credit unions, or government sponsored housing 
     enterprises or to protect the Federal deposit insurance funds 
     shall not be subject to the requirements of this 
     subsection.''.
       (B) Conforming amendment.--Section 603(a) of title 5, 
     United States Code, is amended by inserting ``in accordance 
     with section 612(d)'' before the period at the end of the 
     last sentence.
       (3) Sense of congress regarding sba chief counsel for 
     advocacy.--It is the sense of Congress that the Chief Counsel 
     for Advocacy of the Small Business Administration should be 
     permitted to appear as amicus curiae in any action or case 
     brought in a court of the United States for the purpose of 
     reviewing a rule.
       (4) Presidential action.--Pursuant to the authority of 
     section 7301 of title 5, United States Code, the President 
     shall, within 180 days of the date of the enactment of this 
     Act, prescribe regulations for employees of the executive 
     branch to ensure that Federal laws and regulations shall be 
     administered consistent with the principle that any person 
     shall, in connection with the enforcement of such laws and 
     regulations--
       (A) be protected from abuse, reprisal, or retaliation, and
       (B) be treated fairly, equitably, and with due regard for 
     such person's rights under the Constitution.
       (c) Revision of Certain Provisions of the Federal Food, 
     Drug, and Cosmetic Act Relating to Testing.--In applying 
     section 409(c)(3)(A), 512(d)(1), or 721(b)(5)(B) of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 348(c)(3)(A), 
     360b(d)(1), 379e(b)(5)(B)), the Secretary of Health and Human 
     Services and the Administrator of the Environmental 
     Protection Agency shall not prohibit or refuse to approve a 
     substance or product on the basis of safety, where the 
     substance or product presents a negligible or insignificant 
     foreseeable risk to human health resulting from its intended 
     use.
       (d) Bottled Water Standards.--Section 410 of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 349) is amended--
       (1) by striking ``Whenever''-- and inserting--
       ``(a) Except as provided in subsection (b), whenever''; and
       (2) by adding at the end thereof the following new 
     subsection:
       ``(b)(1)(A) Not later than 180 days after the Administrator 
     of the Environmental Protection Agency promulgates a national 
     primary drinking water regulation for a contaminant under 
     section 1412 of the Public Health Service Act (42 U.S.C. 
     300g-1), the Secretary, after public notice and comment shall 
     issue a regulation under this subsection for that contaminant 
     in bottled water or make a finding that the regulation is not 
     necessary to protect the public health because the 
     contaminant is contained in water in public water systems (as 
     defined under section 1401(4) of such Act (42 U.S.C. 
     333F(4))) but not in water used for bottled drinking water.
       ``(B) In the case of contaminants for which national 
     primary drinking water regulations were promulgated under 
     section 1412 of the Public Health Service Act (42 U.S.C. 
     300g-1) before the date of enactment of the Comprehensive 
     Regulatory Reform Act of 1995, the Secretary shall issue the 
     regulation or publish the finding not later than 1 year after 
     such date of enactment.
       ``(2) The regulation shall include any monitoring require 
     ments that the Secretary determines appropriate for bottled 
     drinking water.
       ``(3) The regulation shall require the following:
       ``(A) In the case of contaminants for which a maximum 
     contaminant level is established in a national primary 
     drinking water regulation under section 1412 of the Public 
     Health Service Act (42 U.S.C. 300g-1), the regulation under 
     this subsection shall establish a maximum contaminant level 
     for the contaminant that is at least as stringent as the 
     maximum contaminant level provided in the national primary 
     drinking water regulation.
       ``(B) In the case of contaminants for which a treatment 
     technique is established in a national primary drinking water 
     regulation under section 1412 of the Public Health Service 
     Act (42 U.S.C. 300g-1), the regulation under this subsection 
     shall require that bottled water be subject to requirements 
     no less protective of public health than those applicable to 
     water provided by public water systems using the treatment 
     technique required by the national primary drinking water 
     regulation.
       ``(4)(A) If the Secretary fails to establish a regulation 
     within the 180-day period, or the 1-year period (whichever is 
     applicable), described in subparagraph (A) or (B) of 
     paragraph (1), the national primary drinking water regulation 
     described in subparagraph (A) or (B) of such paragraph (which 
     is applicable) shall be considered, as of the date on which 
     the Secretary is required to establish a regulation under 
     such paragraph, as the regulation applicable under this 
     subsection to bottled water.
       ``(B) Not later than 30 days after the 180-day period, or 
     the 1-year period (whichever is applicable) described in 
     subparagraph (A) or (B) of paragraph (1), the Secretary 
     shall, with respect to a national primary drinking water 
     regulation that is considered applicable to bottled water as 
     provided in subparagraph (A), publish a notice in the Federal 
     Register that--
       ``(i) sets forth the requirements of the national primary 
     drinking water regulation, including monitoring requirements, 
     which shall be applicable to bottled water; and
       ``(ii) provides that--
       ``(I) in the case of a national primary drinking water 
     regulation promulgated after the date of enactment of the 
     Comprehensive Regulatory Reform Act of 1995, the 
     requirements shall take effect on the date on which the 
     national primary drinking water regulation for the 
     contaminant takes effect under section 1412 of the Public 
     Health Service Act (42 U.S.C. 300g-1); or
       ``(II) in the case of a national primary drinking water 
     regulation promulgated before the date of enactment of the 
     Comprehensive Regulatory Reform Act of 1995, the requirements 
     shall take effect on the date that is 18 months after such 
     date of enactment.''.
       (e) Amendments to the Regulatory Flexibility Act.--
       (1) Improving agency certifications regarding 
     nonapplicability of the regulatory flexibility act.--Section 
     605(b) of title 5, United States Code, is amended to read as 
     follows:
       ``(b) Sections 603 and 604 of this title shall not apply to 
     any rule if the head of the agency certifies that the rule 
     will not, if promulgated, have a significant economic impact 
     on a substantial number of small entities. If the head of the 
     agency makes a certification under the preceding sentence, 
     the agency shall publish such certification, along with a 
     succinct statement providing the factual reasons for such 
     certification, in the Federal Register along with the general 
     notice of proposed rulemaking for the rule. The agency shall 
     provide such certification and statement to the Chief Counsel 
     for Advocacy of the Small Business Administration.''.
       (2) Technical and clarifying amendments.--Section 612 of 
     title 5, United States Code, is amended--
       (A) in subsection (a) by striking ``the Committees on the 
     Judiciary of the Senate and the House of Representatives, the 
     Select Committee on Small Business of the Senate, and the 
     Committee on Small Business of the House of Representatives'' 
     and inserting ``the Committees on the Judiciary and Small 
     Business of the Senate and House of Representatives''; and
       (B) in subsection (b) by striking ``his views with respect 
     to the effect of the rule on small entities'' and inserting 
     ``views on the rule and its effects on small entities''.
       (f) Technical and Conforming Amendments.--
       (1) Chapter analysis.--Part I of title 5, United States 
     Code, is amended by striking the chapter heading and table of 
     sections for chapter 6 and inserting the following:

           ``CHAPTER 6--THE ANALYSIS OF REGULATORY FUNCTIONS

                  ``SUBCHAPTER I--REGULATORY ANALYSIS

``Sec.
``601. Definitions.
``602. Regulatory agenda.
``603. Initial regulatory flexibility analysis.
``604. Final regulatory flexibility analysis.
``605. Avoidance of duplicative or unnecessary analyses.
``606. Effect on other law.
``607. Preparation of analysis.
``608. Procedure for waiver or delay of completion.
``609. Procedures for gathering comments.
``610. Periodic review of rules.
``611. Judicial review.
``612. Reports and intervention rights.

               ``SUBCHAPTER II--ANALYSIS OF AGENCY RULES

``621. Definitions.
``622. Rulemaking cost-benefit analysis.
``623. Decisional criteria.
``624. Jurisdiction and judicial review.
``625. Deadlines for rulemaking.
``626. Special rule.
``627. Petition for alternative method of compliance.

                   ``SUBCHAPTER III--RISK ASSESSMENTS

``631. Short title.
``632. Purposes.
``633. Effective date; applicability; savings provisions.
``634. Principles for risk assessment.
``635. Principles for risk characterization and communication.
``636. Recommendations or classifications by a non-United States-based 
              entity.
``637. Guidelines and report.
``638. Research and training in risk assessment.
``639. Study of comparative risk analysis.
``639a. Definitions.
``639b. Peer review program.
``639c. Petition for review of a major free-standing risk assessment.
``639d. Risk-based priorities.

                  ``SUBCHAPTER IV--EXECUTIVE OVERSIGHT

``641. Procedures.
``642. Delegation of authority.
``643. Judicial review.
``644. Regulatory agenda.''.

       (2) Subchapter heading.--Chapter 6 of title 5, United 
     States Code, is amended by inserting immediately before 
     section 601, the following subchapter heading:

[[Page H 11973]]


                 ``SUBCHAPTER I--REGULATORY ANALYSIS''.

     SEC. 3005. GUIDANCE FOR JUDICIAL INTERPRETATION

       (a) In General.--Chapter 7 of title 5, United States Code, 
     is amended--
       (1) by striking section 706; and
       (2) by adding at the end the following new sections:

     ``Sec. 706. Scope of review

       ``(a) To the extent necessary to reach a decision and when 
     presented, the reviewing court shall decide all relevant 
     questions of law, interpret constitutional and statutory 
     provisions, and determine the meaning or applicability of the 
     terms of an agency action. The reviewing court shall--
       ``(1) compel agency action unlawfully withheld or 
     unreasonably delayed; and
       ``(2) hold unlawful and set aside agency action, findings 
     and conclusions found to be--
       ``(A) arbitrary, capricious, an abuse of discretion, or 
     otherwise not in accordance with law;
       ``(B) contrary to constitutional right, power, privilege, 
     or immunity;
       ``(C) in excess of statutory jurisdiction, authority, or 
     limitations, or short of statutory right;
       ``(D) without observance of procedure required by law;
       ``(E) unsupported by substantial evidence in a proceeding 
     subject to sections 556 and 557 or otherwise reviewed on the 
     record of an agency hearing provided by statute;
       ``(F) without substantial support in the rulemaking file, 
     viewed as a whole, for the asserted or necessary factual 
     basis, in the case of a rule adopted in a proceeding subject 
     to section 553; or
       ``(G) unwarranted by the facts to the extent that the facts 
     are subject to trial de novo by the reviewing court.
       ``(b) In making the determinations set forth in subsection 
     (a), the court shall review the whole record or those parts 
     of it cited by a party, and due account shall be taken of the 
     rule of prejudicial error.

     ``Sec. 707. Consent decrees

       ``In interpreting any consent decree in effect on or after 
     the date of enactment of this section that imposes on an 
     agency an obligation to initiate, continue, or complete 
     rulemaking proceedings, the court shall not enforce the 
     decree in a way that divests the agency of discretion clearly 
     granted to the agency by statute to respond to changing 
     circumstances, make policy or managerial choices, or protect 
     the rights of third parties.

     ``Sec. 708. Affirmative defense

       ``Notwithstanding any other provision of law, it shall be 
     an affirmative defense in any enforcement action brought by 
     an agency that the regulated person or entity reasonably 
     relied on and is complying with a rule, regulation, 
     adjudication, directive, or order of such agency or any other 
     agency that is incompatible, contradictory, or otherwise 
     cannot be reconciled with the agency rule, regulation, 
     adjudication, directive, or order being enforced.

     ``Sec. 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, and other information reasonable available to the 
     defendant, 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, and 
     other information reasonably available to the defendant, 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 
     reasonable 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, after 
     the disclosure of the material stating that the facts, action 
     compliance with, or that the defendant was exempt from, or 
     otherwise not subject to, the requirements of the rule.

     In making its determination of facts under this subsection, 
     the court or agency shall consider all relevant factors, 
     including, if appropriate: that the defendant ought the 
     advice in good faith; and that he acted in accord with the 
     advice that he was given.
       ``(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 for the purpose of 
     the action to any interpretation of such rule relied on by an 
     agency in the action that had not been timely published in 
     the Federal Register, and was to otherwise personally 
     available to the defendant or communicated to the defendant 
     by the method described in paragraph (a)(2) 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 civil or 
     criminal penalty shall be imposed by a court and no 
     administrative penalty shall be imposed by an agency based 
     upon--
       ``(1) an interpretation of a statute, rule, guidance, 
     agency statement of policy, of 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.''.
       (b) Technical Amendment.--The analysis for chapter 7 of 
     title 5, United States Code, is amended by striking the item 
     relating to section 706 and inserting the following new 
     items:

``706. Scope of review.
``707. Consent decrees.
``708. Affirmative defense.''.

     SEC. 3006. CONGRESSIONAL REVIEW.

       (a) Finding.--The Congress finds that effective steps for 
     improving the efficiency and proper management of Government 
     operations will be promoted if a moratorium on the 
     implementation of certain major final and proposed rules is 
     imposed in order to provide Congress an opportunity for 
     review.
       (b) In General.--Title 5, United States Code, is amended by 
     inserting immediately after chapter 7 the following new 
     chapter:``

          CHAPTER 8--CONGRESSIONAL REVIEW OF AGENCY RULEMAKING

``Sec.
``801. Congressional review.
``802. Congressional disapproval procedure.
``803. Special rule on statutory, regulatory, and judicial deadlines.
``804. Definitions.
``805. Judicial review.
``806. Applicability; severability.
``807. Exemption for monetary policy.

     ``Sec. 801. Congressional review

       ``(a)(1)(A) Before a rule can take effect as a final rule, 
     the Federal agency promulgating such rule shall submit to 
     each House of the Congress and to the Comptroller General a 
     report containing--
       ``(i) a copy of the rule;
       ``(ii) a concise general statement relating to the rule; 
     and
       ``(iii) the proposed effective date of the rule.
       ``(B) The Federal agency promulgating the rule shall make 
     available to each House of Congress and the Comptroller 
     General, upon request--
       ``(i) a complete copy of the cost-benefit analysis of the 
     rule, if any;
       ``(ii) the agency's actions relevant to sections 603, 604, 
     605, 607, and 609;
       ``(iii) the agency's actions relevant to sections 202, 203, 
     204, and 205 of the Unfunded Mandates Reform Act of 1995; and
       ``(iv) any other relevant information or requirements under 
     any other Act and any relevant Executive orders, such as 
     Executive Order No. 12866.
       ``(C) Upon receipt, each House shall provide copies to the 
     Chairman and Ranking Member of each committee with 
     jurisdiction.
       ``(2)(A) The Comptroller General shall provide a report on 
     each major rule to the committees of jurisdiction to each 
     House of the Congress by the end of 12 calendar days after 
     the submission or publication date as provided in section 
     802(b)(2). The report of the Comptroller General shall 
     include an assessment of the agency's compliance with 
     procedural steps required by paragraph (1)(B).
       ``(B) Federal agencies shall cooperate with the Comptroller 
     General by providing information relevant to the Comptroller 
     General's report under subparagraph (A).
       ``(3) A major rule relating to a report submitted under 
     paragraph (1) shall take effect as a final rule, the latest 
     of--
       ``(A) the later of the date occurring 60 days (excluding 
     days either House of Congress is adjourned for more than 3 
     days during a session of Congress) after the date on which--
       ``(i) the Congress receives the report submitted under 
     paragraph (1); or
       ``(ii) the rule is published in the Federal Register;
       ``(B) if the Congress passes a joint resolution of 
     disapproval described under section 802 relating to the rule, 
     and the President signs a veto of such resolution, the 
     earlier date--
       ``(i) on which either House of Congress votes and fails to 
     override the veto of the President; or
       ``(ii) occurring 30 session days after the date on which 
     the Congress received the veto and objections of the 
     President; or

[[Page H 11974]]

       ``(C) the date the rule would have otherwise taken effect, 
     if not for this section (unless a joint resolution of 
     disapproval under section 802 is enacted).
       ``(4) Except for a major rule, a rule shall take effect as 
     otherwise provided by law after submission to Congress under 
     paragraph (1).
       ``(5) Notwithstanding paragraph (3), the effective date of 
     a rule shall not be delayed by operation of this chapter 
     beyond the date on which either House of Congress votes to 
     reject a joint resolution of disapproval under section 802.
       ``(b)(1) A rule or proposed rule shall not take effect (or 
     continue) as a final rule, if the Congress passes a joint 
     resolution of disapproval described under section 802.
       ``(2) A rule or proposed rule that does not take effect (or 
     does not continue) under paragraph (1) may not be reissued in 
     substantially the same form, and a new rule that is 
     substantially the same as such a rule or proposed rule may 
     not be issued, unless the reissued or new rule is 
     specifically authorized by a law enacted after the date of 
     the joint resolution disapproving the original rule.
       ``(c)(1) Notwithstanding any other provision of this 
     section (except subject to paragraph (3)), a rule that would 
     not take effect by reason of this chapter may take effect, if 
     the President makes a determination under paragraph (2) and 
     submits written notice of such determination to the Congress.
       ``(2) Paragraph (1) applies to a determination made by the 
     President by Executive order that the rule should take effect 
     because such rule is--
       ``(A) necessary because of an imminent threat to health or 
     safety or other emergency;
       ``(B) necessary for the enforcement of criminal laws;
       ``(C) necessary for national security; or
       ``(D) issued pursuant to a statute implementing an 
     international trade agreement.
       ``(3) An exercise by the President of the authority under 
     this subsection shall have no effect on the procedures under 
     section 802 or the effect of a joint resolution of 
     disapproval under this section.
       ``(d)(1) In addition to the opportunity for review 
     otherwise provided under this chapter, in the case of any 
     rule that is published in the Federal Register (as a rule 
     that shall take effect as a final rule) during the period 
     beginning on the date occurring 60 days before the date the 
     Congress adjourns a session of Congress through the date on 
     which the same or succeeding Congress first convenes its next 
     session, section 802 shall apply to such rule in the 
     succeeding session of Congress.
       ``(2)(A) In applying section 802 for purposes of such 
     additional review, a rule described under paragraph (1) shall 
     be treated as though--
       ``(i) such rule were published in the Federal Register (as 
     a rule that shall take effect as a final rule) on the 15th 
     session day after the succeeding Congress first convenes; and
       ``(ii) a report on such rule were submitted to Congress 
     under subsection (a)(1) on such date.
       ``(B) Nothing in this paragraph shall be construed to 
     affect the requirement under subsection (a)(1) that a report 
     shall be submitted to Congress before a final rule can take 
     effect.
       ``(3) A rule described under paragraph (1) shall take 
     effect as a final rule as otherwise provided by law 
     (including other subsections of this section).
       ``(e)(1) The requirements established by the Comprehensive 
     Regulatory Reform Act of 1995 shall apply to any major rule 
     that was published in the Federal Register (as a rule that 
     shall take effect as a final rule) during the period 
     beginning on November 20, 1994, through the date of enactment 
     of the Comprehensive Regulatory Reform Act of 1995. Any major 
     rule issued in that period shall be reissued within one year 
     after the date of enactment of that Act to comply with this 
     subsection.
       ``(2) In applying section 802 for purposes of Congressional 
     review, a rule described under paragraph (1) shall be treated 
     as though--
       ``(A) such rule were published in the Federal Register (as 
     a rule that shall take effect as a final rule) on the date of 
     enactment of the Comprehensive Regulatory Reform Act of 1995; 
     and
       ``(B) a report on such rule were submitted to Congress 
     under subsection (a)(1) on such date.
       ``(3) Prior to its reissuance under paragraph (1), the 
     effectiveness of a rule described under paragraph (1) shall 
     be as otherwise provided by law, unless the rule is made of 
     no force or effect under section 802.
       ``(f) Any rule that takes effect and later is made of no 
     force or effect by enactment of a joint resolution under 
     section 802 shall be treated as though such rule had never 
     taken effect.
       ``(g) If the Congress does not enact a joint resolution of 
     disapproval under section 802, no court or agency may infer 
     any intent of the Congress from any action or inaction of the 
     Congress with regard to such rule, related statute, or joint 
     resolution of disapproval.

     ``Sec. 802. Congressional disapproval procedure

       ``(a) Joint Resolution Defined.--For purposes of this 
     section, the term `joint resolution' means only--
       ``(1) a joint resolution introduced in the period beginning 
     on the date on which the report referred to in section 801(a) 
     is received by Congress and ending 60 days thereafter 
     (excluding days either House of Congress is adjourned for 
     more than 3 days during a session of Congress), the matter 
     after the resolving clause of which is as follows: `That 
     Congress disapproves the rule submitted by the ____ relating 
     to ____, and such rule shall have no force or effect.' (The 
     blank spaces being appropriately filled in); or
       ``(2) a joint resolution the matter after the resolving 
     clause of which is as follows: `That the Congress disapproves 
     the proposed rule published by the ________ relating to 
     ______, and such proposed rule shall not be issued or take 
     effect as a final rule.' (the blank spaces being 
     appropriately filled in)
       ``(b)(1) A resolution described in subsection (a) shall be 
     referred to the committees in each House of Congress with 
     jurisdiction.
       ``(2) For purposes of this section, the term `submission or 
     publication date' means--
       ``(A) in the case of a joint resolution described in 
     subsection (a)(1) the later of the date on which--
       ``(i) the Congress receives the report submitted under 
     section 801(a)(1); or
       ``(ii) the rule is published in the Federal Register; or
       ``(B) in the case of a joint resolution described in 
     subsection (a)(2), the date of introduction of the joint 
     resolution.
       ``(c) In the Senate, if the committee to which is referred 
     a resolution described in subsection (a) has not reported 
     such joint resolution (or an identical resolution) at the end 
     of 20 calendar days after the submission or publication date 
     defined under subsection (b)(2), such committee may be 
     discharged from further consideration of such resolution upon 
     a petition supported in writing by 30 Members of the Senate, 
     and such resolution shall be placed on the appropriate 
     calendar.
       ``(d)(1) In the Senate, when the committee to which a joint 
     resolution is referred has reported, or when a committee is 
     discharged (under subsection (c)) from further consideration 
     of, a resolution described in subsection (a), it is at any 
     time thereafter in order (even though a previous motion to 
     the same effect has been disagreed to) for a motion to 
     proceed to the consideration of the resolution, and 
     all points of order against the resolution (and against 
     consideration of resolution) are waived. The motion is not 
     subject to amendment, or to a motion to postpone, or to a 
     motion to proceed to the consideration of other business. 
     A motion to reconsider the vote by which the motion is 
     agreed to or disagreed to shall not be in order. If a 
     motion to proceed to the consideration of the joint 
     resolution is agreed to, the resolution shall remain the 
     unfinished business of the Senate until disposed of.
       ``(2) In the Senate, debate on the joint resolution, and on 
     all debatable motions and appeals in connection therewith, 
     shall be limited to not more than 10 hours, which shall be 
     divided equally between those favoring and those opposing the 
     resolution. A motion further to limit debate is in order and 
     not debatable. An amendment to, or a motion to postpone, or a 
     motion to proceed to the consideration of other business, or 
     a motion to recommit the joint resolution is not in order.
       ``(3) In the Senate, immediately following the conclusion 
     of the debate on a joint resolution described in subsection 
     (a), and a single quorum call at the conclusion of the debate 
     if requested in accordance with the rules of the Senate, the 
     vote on final passage of the resolution shall occur.
       ``(4) Appeals from the decisions of the Chair relating to 
     the application of the rules of the Senate to the procedure 
     relating to a joint resolution described in subsection (a) 
     shall be decided without debate.
       ``(e) If, before the passage by one House of a joint 
     resolution of that House described in subsection (a), that 
     House receives from the other House a joint resolution 
     described in subsection (a), then the following procedures 
     shall apply:
       ``(1) The joint resolution of the other House shall not be 
     referred to a committee.
       ``(2) With respect to a joint resolution described in 
     subsection (a) of the House receiving the joint resolution--
       ``(A) the procedure in that House shall be the same as if 
     no joint resolution had been received from the other House; 
     but
       ``(B) the vote on final passage shall be on the joint 
     resolution of the other House.
       ``(f) This section is enacted by Congress--
       ``(1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such it is 
     deemed a part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a joint resolution described in 
     subsection (a), and it supersedes other rules only to the 
     extent that it is inconsistent with such rules; and
       ``(2) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner, and 
     to the same extent as in the case of any other rule of that 
     House.

     ``Sec. 803. Special rule on statutory, regulatory, and 
       judicial deadlines

       ``(a) In the case of any deadline for, relating to, or 
     involving any rule which does not take effect (or the 
     effectiveness of which is terminated) because of enactment of 
     a joint resolution under section 802, that deadline is 
     extended until the date 1 year after the date of the joint 
     resolution. Nothing in this subsection shall be construed to 
     affect a deadline merely by reason of the postponement of a 
     rule's effective date under section 801(a).

[[Page H 11975]]

       ``(b) The term `deadline' means any date certain for 
     fulfilling any obligation or exercising any authority 
     established by or under any Federal statute or regulation, or 
     by or under any court order implementing any Federal statute 
     or regulation.

     ``Sec. 804. Definitions

       ``(a) For purposes of this chapter--
       ``(1) the term `Federal agency' means any agency as that 
     term is defined in section 551(1) (relating to administrative 
     procedure);
       ``(2) the term `major rule' has the same meaning given such 
     term in section 621(5); and
       ``(3) the term `final rule' means any final rule or interim 
     final rule.
       ``(b) As used in subsection (a)(3), the term `rule' has the 
     meaning given such term in section 551, except that such term 
     does not include any rule of particular applicability 
     including a rule that approves or prescribes for the future 
     rates, wages, prices, services, or allowances therefor, 
     corporate or financial structures, reorganizations, mergers, 
     or acquisitions thereof, or accounting practices or 
     disclosures bearing on any of the foregoing or any rule of 
     agency organization, personnel, procedure, practice or any 
     routine matter.

     ``Sec. 805. Judicial review

       ``No determination, finding, action, or omission under this 
     chapter shall be subject to judicial review.

     ``Sec. 806. Applicability; severability

       ``(a) This chapter shall apply notwithstanding any other 
     provision of law.
       ``(b) If any provision of this chapter or the application 
     of any provision of this chapter to any person or 
     circumstance, is held invalid, the application of such 
     provision to other persons or circumstances, and the 
     remainder of this chapter, shall not be affected thereby.

     ``Sec. 807. Exemption for monetary policy

       ``Nothing in this chapter shall apply to rules that concern 
     monetary policy proposed or implemented by the Board of 
     Governors of the Federal Reserve System or the Federal Open 
     Market Committee.''.
       (c) Effective Date.--The amendment made by subsection (b) 
     shall take effect on the date of enactment of this Act.
       (d) Technical Amendment.--The table of chapters for part I 
     of title 5, United States Code, is amended by inserting 
     immediately after the item relating to chapter 7 the 
     following:

``8. Congressional Review of Agency Rulemaking...................801''.

     SEC. 3007. REGULATORY ACCOUNTING STATEMENT.

       (a) Definitions.--For purposes of this section, the 
     following definitions apply:
       (1) Major rule.--The term ``major rule'' has the same 
     meaning as defined in section 621(5)(A)(i) of title 5, United 
     States Code. The term shall not include--
       (A) administrative actions governed by sections 556 and 557 
     of title 5, United States Code;
       (B) regulations issued with respect to a military or 
     foreign affairs function of the United States or a statute 
     implementing an international trade agreement; or
       (C) regulations related to agency organization, management, 
     or personnel.
       (2) Agency.--The term ``agency'' means any executive 
     department, military department, Government corporation, 
     Government controlled corporation, or other establishment in 
     the executive branch of the Government (including the 
     Executive Office of the President), or any independent 
     regulatory agency, but shall not include--
       (A) the General Accounting Office;
       (B) the Federal Election Commission;
       (C) the governments of the District of Columbia and of the 
     territories and possessions of the United States, and their 
     various subdivisions; or
       (D) Government-owned contractor-operated facilities, 
     including laboratories engaged in national defense research 
     and production activities.
       (b) Accounting Statement.--
       (1) In general.--
       (A) The President shall be responsible for implementing and 
     administering the requirements of this section.
       (B) Not later than June 1, 1997, and each June 1 
     thereafter, the President shall prepare and submit to 
     Congress an accounting statement that estimates the annual 
     costs of major rules and corresponding benefits in accordance 
     with this subsection.
       (2) Years covered by accounting statement.--Each accounting 
     statement shall cover, at a minimum, the 5 fiscal years 
     beginning on October 1 of the year in which the report is 
     submitted and may cover any fiscal year preceding such fiscal 
     years for purpose of revising previous estimates.
       (3) Timing and procedures.--
       (A) The President shall provide notice and opportunity for 
     comment for each accounting statement. The President may 
     delegate to an agency the requirement to provide notice and 
     opportunity to comment for the portion of the accounting 
     statement relating to that agency.
       (B) The President shall propose the first accounting 
     statement under this subsection not later than 2 years after 
     the date of enactment of this Act and shall issue the first 
     accounting statement in final form not later than 3 years 
     after such effective date. Such statement shall cover, at a 
     minimum, each of the fiscal years beginning after the date of 
     enactment of this Act.
       (4) Content of accounting statement.--
       (A) Each accounting statement shall contain estimates of 
     costs and benefits with respect to each fiscal year covered 
     by the statement in accordance with this paragraph. For each 
     such fiscal year for which estimates were made in a previous 
     accounting statement, the statement shall revise those 
     estimates and state the reasons for the revisions.
       (B)(i) An accounting statement shall estimate the costs of 
     major rules by setting forth, for each year covered by the 
     statement--
       (I) the annual expenditure of national economic resources 
     for major rules, grouped by regulatory program; and
       (II) such other quantitative and qualitative measures of 
     costs as the President considers appropriate.
       (ii) For purposes of the estimate of costs in the 
     accounting statement, national economic resources shall 
     include, and shall be listed under, at least the following 
     categories:
       (I) Private sector costs.
       (II) Federal sector costs.
       (III) State and local government administrative costs.
       (C) An accounting statement shall estimate the benefits of 
     major rules by setting forth, for each year covered by the 
     statement, such quantitative and qualitative measures of 
     benefits as the President considers appropriate. Any 
     estimates of benefits concerning reduction in health, safety, 
     or environmental risks shall present the most plausible level 
     of risk practical, along with a statement of the reasonable 
     degree of scientific certainty.
       (c) Associated Report to Congress.--
       (1) In general.--At the same time as the President submits 
     an accounting statement under subsection (b), the President, 
     acting through the Director of the Office of Management and 
     Budget, shall submit to Congress a report associated with the 
     accounting statement (hereinafter referred to as an 
     ``associated report''). The associated report shall 
     contain, in accordance with this subsection--
       (A) analyses of impacts; and
       (B) recommendations for reform.
       (2) Analyses of impacts.--The President shall include in 
     the associated report the following:
       (A) Analyses prepared by the President of the cumulative 
     impact of major rules in Federal regulatory programs covered 
     in the accounting statement on the following:
       (i) The ability of State and local governments to provide 
     essential services, including police, fire protection, and 
     education.
       (ii) Small business.
       (iii) Productivity.
       (iv) Wages.
       (v) Economic growth.
       (vi) Technological innovation.
       (vii) Consumer prices for goods and services.
       (viii) Such other factors considered appropriate by the 
     President.
       (B) A summary of any independent analyses of impacts 
     prepared by persons commenting during the comment period on 
     the accounting statement.
       (3) Recommendations for reform.--The President shall 
     include in the associated report the following:
       (A) A summary of recommendations of the President for 
     reform or elimination of any Federal regulatory program or 
     program element that does not represent sound use of national 
     economic resources or otherwise is inefficient.
       (B) A summary of any recommendations for such reform or 
     elimination of Federal regulatory programs or program 
     elements prepared by persons commenting during the comment 
     period on the accounting statement.
       (d) Guidance From Office of Management and Budget.--The 
     Director of the Office of Management and Budget shall, in 
     consultation with the Council of Economic Advisers, provide 
     guidance to agencies--
       (1) to standardize measures of costs and benefits in 
     accounting statements prepared pursuant to sections 3 and 7 
     of this Act, including--
       (A) detailed guidance on estimating the costs and benefits 
     of major rules; and
       (B) general guidance on estimating the costs and benefits 
     of all other rules that do not meet the thresholds for major 
     rules; and
       (2) to standardize the format of the accounting statements.
       (e) Recommendations From Congressional Budget Office.--
     After each accounting statement and associated report 
     submitted to Congress, the Director of the Congressional 
     Budget Office shall make recommendations to the President--
       (1) for improving accounting statements prepared pursuant 
     to this section, including recommendations on level of detail 
     and accuracy; and
       (2) for improving associated reports prepared pursuant to 
     this section, including recommendations on the quality of 
     analysis.
       (f) Judicial Review.--No requirements under this section 
     shall be subject to judicial review in any manner.

     SEC. 3008. STUDIES AND REPORTS.

       (a) Risk Assessments.--The Administrative Conference of the 
     United States shall--
       (1) develop and carry out an ongoing study of the operation 
     of the risk assessment requirements of subchapter III of 
     chapter 6 of title 5, United States Code (as added by section 
     4 of this Act); and

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       (2) submit an annual report to the Congress on the findings 
     of the study.
       (b) Administrative Procedure Act.--Not later than December 
     31, 1996, the Administrative Conference of the United States 
     shall--
       (1) carry out a study of the operation of the 
     Administrative Procedure Act (as amended by section 3 of this 
     Act); and
       (2) submit a report to the Congress on the findings of the 
     study, including proposals for revision, if any.

     SEC. 3009. MISCELLANEOUS PROVISIONS.

       (a) Effective Date.--Except as otherwise provided, this Act 
     and the amendments made by this Act shall take effect on the 
     date of enactment.
       (b) Severability.--If any provision of this Act, an 
     amendment made by this Act, or the application of such 
     provision or amendment to any person or circumstance is held 
     to be unconstitutional, the remainder of this Act, the 
     amendments made by this Act, and the application of the 
     provisions of such to any person or circumstance shall not be 
     affected thereby.