[Congressional Record Volume 141, Number 177 (Thursday, November 9, 1995)]
[House]
[Pages H12007-H12064]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             TEMPORARY INCREASE IN THE STATUTORY DEBT LIMIT

  Mr. McCRERY. Mr. Speaker, pursuant to the rule, I call up the bill 
(H.R. 2586) to provide for a temporary increase in the public debt 
limit, and for other purposes, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to House Resolution 258, the 
gentleman from Louisiana [Mr. McCrery] will be recognized for 30 
minutes, and the gentleman from Florida [Mr. Gibbons] will be 
recognized for 30 minutes.
  The Chair recognizes the gentleman from Louisiana [Mr. McCrery].
  Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the subject of this bill, of course, is a short-term 
extension of the Nation's debt limit. This short-term extension is 
intended to provide an orderly process, with sufficient time for the 
Congress and the President to consider the balanced budget bill that 
will shortly be sent to the President. It is now clear that some type 
of pressure must be applied to bring the differing views together and 
to resolve this problem.
  Mr. Speaker, H.R. 2586 would temporarily increase the statutory limit 
on the public debt to $4.967 trillion. It would do so until December 
12, 1995. Under the bill, the limit would then revert to $4.8 trillion. 
H.R. 2586 also ensures the financial integrity of Government trust 
funds invested in Government debt obligations subject to the debt 
limit.
  Mr. Speaker, this bill today is necessary because the Congress, the 
legislative branch, under our Constitution, is responsible for 
authorizing any debt to be incurred by the U.S. Government. That is an 
obligation which we must take very seriously, and consider very 
carefully. Some in this Chamber are reluctant to increase the Nation's 
debt limit at all. I understand that, Mr. Speaker.
  However, we all recognize that this Government has made commitments 
and entered into obligations that must eventually be paid, so in an 
effort to accommodate those obligations and in an effort to accommodate 
this body and the executive branch with time to deliberate matters of 
great importance to the country, including balancing this Nation's 
budget in 7 years, this bill comes to us today. We believe this bill is 
not only necessary, but entirely appropriate, and we will get into more 
of the details as the debate continues.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GIBBONS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, my fine and much-admired friend, the gentleman from 
Louisiana, has stated some of this bill, but perhaps he knows more 
about it than I do. He says that it is just a temporary legislation. 
The first page or so is temporary, but the other 400-and-some pages in 
this bill, and the pages that will perhaps be adopted here by 
additional amendments, are not temporary legislation. They are very 
permanent legislation. They do drastic things to this U.S. Government. 
They do it without debate, without consideration, or anything else.
  The only reason we are here at this late hour and under this kind of 
confusing circumstances is because the Republicans have not been able 
to get their act together, to get their majority control together, and 
to do the things that should have been done. We are here on November 9 
to do the work that should have been done in July of this same year.
  The Republicans keep howling and screaming that the President will 
not bargain with them, but how, Mr. Speaker, can the President bargain 
with them? They have no budget bill. They have not even had a meeting 
on their budget bill in 2 weeks. I know. I am a conferee. I have not 
even gotten a notice, or, as one Member said, a postcard about a 
meeting of the conferees to iron out the differences in the budget 
resolution. We are about 4 months behind on the budget, the Congress 
is, because the Republicans cannot muster a majority on their side to 
get anything done.
  We are here at this late hour attempting to blackmail the President 
into signing something that he will never sign. The President is not 
subject to blackmail. He has enough sense not to give in to that kind 
of treatment. He is not going to sign this ridiculous trash here, most 
of which is only put together, as the gentleman from Louisiana said, 
temporarily, so they can get enough votes together to get this thing 
through the House. They are going to drop all these amendments. Their 
Members ought to understand that. None of this is ever going to become 
law. It is only here so that the Republicans can be coerced or bribed 
or twisted their arms or whatever you want to call it to vote for this 
thing. It is not going to happen.
  It is a terrible way to run the Government. It is a terrible 
reflection upon the Republican Party that they cannot do a simple 
thing, which is strike out one figure in a piece of legislation and add 
another figure. That is all that is here. We have done it hundreds of 
times in the years that I have been here without all of this rankle, 
all of this other garbage that has been added to it.
  Mr. Speaker, this is a very, very poor and disastrous way to run the 
Government. It is a terrible reflection upon the Republican Party. We 
Democrats do not have control of this body. We do not set the agenda. 
We do not have the ability to produce a majority vote. It is all within 
their power. It is all within their ability. It is all within their 
responsibility. They cannot get up here and pretend that it is 
anybody's responsibility except theirs.
  Mr. Speaker, I reserve the balance of my time.
  Mr. McCRERY. Mr. Speaker, it is with a great deal of pleasure that I 
yield 3 minutes to the gentleman from Pennsylvania [Mr. Clinger], one 
of the most distinguished Members of the Chamber, and chairman of the 
Committee on Government Reform and Oversight.
  Mr. CLINGER. Mr. Speaker, I thank the gentleman very much for 
yielding time to me.
  I guess we will have to put the gentleman from Florida [Mr. Gibbons] 
as undecided on this matter.
  Mr. Speaker, this bill is more, really, much more than an increase in 
the debt limit. It is really a down payment on the promise that we have 
made to make government smaller and more responsive to the American 
people. It is crucial that we refocus government on those essential 
functions that it must perform, and reconsider whether government 
should be involved in any activity which it cannot do well.
  We presently are involved in a great many activities, Mr. Speaker, 
that we do not do well. The reason we have to 

[[Page H 12008]]
raise the debt ceiling again is that the bureaucracy in Washington has 
grown unchecked for far too long. Endlessly we have added, bloated, and 
enlarged the Federal Government, so today we are going to continue to 
reverse that trend by voting for a second time, Mr. Speaker, to 
eliminate the Department of Commerce. This has been debated, has been 
considered before with this body, and we have decided in our wisdom to 
eliminate the Department of Commerce as part of the reconciliation 
discussions.
  In my view, the Department of Commerce is one bureaucracy that, 
frankly, is not necessary. Functions of the Department overlap with 71 
independent agencies of the Government. True, there are, indeed, vital 
functions performed by Commerce involving trade, weather services, 
statistical information, and essential components will be retained in a 
more appropriate home. Other functions will be privatized, sent to the 
States and localities, or terminated.
  Mr. Speaker, it has been suggested that we are doing this just to put 
a scalp on our belt. That is absolutely not true. We have really taken 
a very close look at how this Department can be dismantled, how the 
functions of that Department can be consolidated and made to work much 
more efficiently, much more productively than they have in the past.
  Specifically, the commerce title in the debt ceiling bill highlights 
the importance of a strong trade policy, consolidates the various 
activities that are now spread all over the Federal Government dealing 
with trade, presents a cohesive approach to trade promotion. We 
consolidate the Department of Scientific and Environmental Functions of 
the National Oceanic and Atmospheric Administration, we privatize or 
eliminate 40 agencies and programs, and we establish a citizens 
commission on 21st century government to evaluate the entire Federal 
Government, and determine how we can make this government, yes, 
smaller, more productive, more efficient, and more responsive to the 
American people.
  Let me be clear, however, that we are not cutting just for the sake 
of saving dollars. If that was the only objective, I do not think it 
would be worth doing. In fact, we will be saving a great deal of 
dollars as a result of this exercise. The CBO has recently revised 
their estimate. We are going to save $6 billion by the elimination or 
the dismantlement of the Department of Commerce. The other side 
suggests we are just bloating up other parts of the government. That 
could not possibly be the case if we are going to save $6 billion. 
Clearly we are reducing, not enlarging the government.

                              {time}  1415

  So, Mr. Speaker, I would urge support for this debt limit extension, 
and for the elimination of the Department of Commerce. It is long 
overdue.
  Mr. GIBBONS. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman 
from Michigan [Mr. Levin].
  (Mr. LEVIN asked and was given permission to revise and extend his 
remarks.)
  Mr. LEVIN. Mr. Speaker, the issue here today is not a balanced budget 
and it is not a short-term extension to achieve it. Democrats favor an 
extension to help achieve a balanced budget. Most of us are willing to 
vote for a clean, short-term extension. Now, why are the Republicans 
not proposing it? Why is this layered with all of these additional 
proposals?
  There are two reasons, Mr. Speaker. First of all, leverage on the 
President. Now, look, I am in favor of pressure. But this goes beyond 
pressure to try to create a pistol, and I suggest it will not work, it 
will backfire. The second reason there is not a clean extension is to 
satisfy some internal pressures within the Republican House Caucus. So 
they have added a provision on the Department of Commerce and one on 
regulatory language, a huge bill that few, if any, have read. Why are 
they doing this?
  The Senate Republican leadership has made clear that they will not 
buy the Commerce Department provision, so you are doing this to have 
some satisfaction internally within the Republican House Caucus.
  The Senate is working on regulatory reform. So what the Republicans 
are really doing here today is to play games, but going beyond it and 
playing with fire. What they are going to do through this, if it were 
ever to succeed, is to limit the management ability of the President to 
manage, to manage this situation, to manage this debt.
  Secretary Rubin has said very clearly, this legislation severely 
limits options the Secretary has under current law to relieve pressure 
and to avert default.
  Let us stop playing with fire with the debt. It would increase the 
interest rates. It would increase the interest rates for people with 
variable mortgages, with credit card debt. Look, what you are doing 
through this kind of proposal is linking chaos in this House with 
crassness. It will not work.
  What you should be doing here today is joining on a bipartisan basis 
to pass a short-term extension of the debt period. That is going to 
happen sooner or later; let us do it now. I urge defeat of this. Let us 
get to our senses and work on a bipartisan basis.
  Mr. McCRERY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, just in response to the gentleman's comments, it might 
be good to know that the day after the Committee on Ways and Means took 
the action to bring this bill to the floor, the stock market went up 
some 55 points and interest rates went down. So I think the fact that 
we have established a drop-dead date for negotiations to take place 
between the executive and legislative branches has, in fact, had a 
salutary effect on the markets and we hope to continue this.
  Mr. Speaker, I yield 2 minutes to the distinguished gentleman from 
Florida [Mr. McCollum], the chairman of the Subcommittee on Crime of 
the Committee on the Judiciary.
  (Mr. McCOLLUM asked and was given permission to revise and extend his 
remarks.)
  Mr. McCOLLUM. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I want to talk about one of those extra things that are 
on this bill, that really is not controversial in the broad sense, 
because it has passed the House a number of times, including this 
Congress, by overwhelming margins. It is something that really should 
be enacted into law, and we have an opportunity on this debt ceiling 
bill to get it down to the President in a timely fashion, which we have 
not had before, and that is the reform of what is known as habeas 
corpus laws to try to end the seemingly endless appeals that death row 
inmates have.
  Mr. Speaker, I can assure anybody who has paid attention to the death 
row situation, where people have committed heinous crimes and have been 
convicted and sentenced to death, that that is an abomination that 
people can carry out the sentence for as much as 15 or 20 years by 
procedural gimmicks.
  What happens, of course, is that they get convicted, they go through 
a State court appeal posture after they get sentenced to death, they go 
all the way to the Supreme Court of the United States, and a court 
says, the conviction is fine, the sentence is fine. They come back and 
they have an opportunity to go into Federal district court and file 
what is known as a habeas corpus petition and seek to get out on a 
procedural matter; for example, they did not have a lawyer who 
represented them properly at trial.
  They then take that appeal and go all the way back to the Supreme 
Court, which takes a considerable amount of time, and after the Supreme 
Court denies that appeal, they can go back into Federal district court 
again on some other procedural ground and appeal that, and it could go 
on and on and on.
  What we do in this and what the House did earlier this year, and what 
is part of this bill, if we pass it today and send it to the President 
and maybe get it enacted into law, we say that after your finish your 
Federal appeal you can go into Federal court only one time. You have to 
put all of your apples in that basket, all of your procedural 
complaints and issues, and let it be decided and get on with the 
carrying out of the sentence if you do not have any grounds for those. 
Obviously, anybody who can provide that they are really innocent of the 
crime, they are not going to have the death penalty carried out.
  We have been waiting for a long, long time, years battling over this 
issue. This is a perfect bill, one the President 

[[Page H 12009]]
really has to face and sign, a short-term debt extension, to finally 
get it enacted into law, the reform of habeas corpus, to end this 
process of staying and keeping staying, again and again and again, the 
death penalties in the State courts of this Nation. It is time to act 
now, and I urge the adoption of this bill.
  Mr. GIBBONS. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Connecticut [Mrs. Kennelly].
  Mrs. KENNELLY asked and was give permission to revise and extend her 
remarks.)
  Mrs. KENNELLY. Mr. Speaker, I rise in opposition to H.R. 2586. As a 
Member who has consistently been responsible and voted to increase the 
debt ceiling, it saddens me to stand here in opposition.
  We have heard all sorts of obfuscation from the majority. But let 
there be no mistake, raising the debt ceiling has nothing to do with 
the current level of government spending, and everything to do with 
financing our prior obligations--living up to our commitments. There is 
no doubt that the debt ceiling will be raised in the long run. What we 
should be doing here today is passing a clean temporary debt ceiling as 
an interim measure to prevent default while a balanced budget agreement 
can be hammered out.
  The bill before us today purports to protect trust funds but it has 
the practical effect of ensuring that Medicare claims won't be paid, 
tax refund checks can't be cashed and our Armed Forces won't be paid. 
It also strips the Secretary of the Treasury of all cash management 
tools--tools that were provided Republican Secretaries of the Treasury 
by Democratic Congresses. It is nothing more than an attempt to 
blackmail the President and to ultimately push us closer to default. It 
is irresponsible and unacceptable.
  We stand here today and listen to the majority try to blame the 
President for delay. But, let's look at the facts. It is November 9th, 
5 weeks after the start of the fiscal year and congressional 
Republicans have yet to even send their plan to the President. In 1993, 
the Clinton budget plan was enacted by August. The majority talks about 
getting their budget done on time, yet, they've only sent the President 
3 of the 13 required appropriations bills. So let us be clear now who 
is responsible for delay.
  When all is said and done, the debt ceiling will be increased. We 
shouldn't hold the economy or average American families hostage to a 
partisan debate on a balanced budget. We should enact a clean extension 
in the debt ceiling immediately.
  Mr. ARCHER. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from 
Florida [Mr. Mica].
  Mr. MICA. Mr. Speaker, I rise in support of H.R. 2586 as chairman of 
the Subcommittee on Civil Service. This bill provides important 
protections for active and retired Federal workers. It protects the 
integrity of the civil service retirement and disability fund and the 
government securities investment fund.
  Under this bill, the administration will not be able to raid these 
funds in order to pretend that our national debt does not exceed the 
debt limit. The civil service retirement and disability fund provides 
authority to fund annuities paid under the Civil Service Retirement 
System and the Federal Employees Retirement System. It is a tempting 
target for the administration to raid, Mr. Speaker. In fact, it 
contains about 374 billion dollars' worth of special nonmarketable 
government securities that are subject to the debt limit.
  Many current Federal employees invest their money in the government 
securities investment fund. This is one of the three funds in which 
employees can invest under the thrift savings plan. Their money is also 
invested in special nonmarketable government securities subject to the 
debt limit. In the past, Mr. Speaker, administrations have raided the 
civil service retirement and disability fund in order to stay under the 
debt limit. They have refused to invest the dollars coming into the 
fund. The administration could even just tear up existing nonmarketable 
securities in the fund. It has been done before.
  It is also clear, Mr. Speaker, that the administration intends to 
raid the civil service retirement and disability fund. I have here a 
set of administration talking points that make that clear.
  Mr. Speaker, the civil service retirement disability fund is already 
woefully underfunded to the tune of $540 billion. Yes, Mr. Speaker, 
there is already an unfunded liability of half a trillion dollars. Our 
learned colleagues on the other side of the aisle screamed and hollered 
when the private employers asked to be able to withdraw their excess 
contributions from their employee retirement funds that were more than 
125 percent funded. Yes, Mr. Speaker, they did not even want private 
employers to reach into expensively funded plans. These same people now 
have the gall to give the administration a free reign to raid the 
retirement fund that is so woefully underfunded.
  Mr. Speaker, we need to manage our public debt and to work hard to 
reduce it, but allowing the administration to dip into these funds 
would just be a gimmick. It is a charade. It is time to inject some 
fiscal responsibility in managing the Government accounts.
  I support H.R. 2586, Mr. Speaker, because it prevents the 
administration from raiding the funds behind our employee retirement 
systems and behind their backs, and it makes sure their annuities are 
paid.
  Mr. Speaker, I insert the following information in support of my 
statement.

    Excerpt from Department of Treasury Talking Points, Nov. 7, 1995

       Finally, by repealing the debt management features of the 
     law relating to the Civil Service Retirement and Disability 
     Fund, the bill would increase the risk of default by severely 
     limiting the ability of the Secretary of the Treasury to 
     assure that crucial government payments--including benefit 
     payments such as Social Security, as well as payments on the 
     public debt--could be made in a time of debt limit crisis. 
     These provisions were enacted in a Republican Administration 
     and reflect the widely held view that the Secretary should 
     have options to relieve pressure and avert default.

  Mr. GIBBONS. Mr. Speaker, before this debate gets too rough, I yield 
1 minute to the gentleman from Virginia [Mr. Moran] who knows something 
about the subject that was just discussed.
  Mr. MORAN. Mr. Speaker, in fact, I have my money in that very 
retirement fund.
  Mr. Speaker, first of all, it must be said that this legislation 
plays politics with people's lives. It is deliberately designed to 
force a default of Federal debt obligations, and specifically ties the 
President's hands from being able to avert a debt ceiling crisis under 
the excuse that this is supposed to save Civil Service retirees. That 
provision was put in during the Reagan administration precisely to 
protect the Civil Service Retirement Trust Fund. That is why it was put 
there. Now it is being repealed.
  Mr. Speaker, I have a letter from the Federal Retirement Thrift 
Investment Board, dated today. This is a nonpartisan board designed to 
oversee the Federal Thrift Savings Plan. This letter says that this 
provision, if this bill is passed, will cost Federal retirees' $3.5 
million per day, an amount that once lost, will never be recaptured. Do 
not do this to Federal retirees, do not do it to Social Security 
retirees. I urge defeat of this legislation.
  Mr. Speaker, the letter referred to follows:
                                         Federal Retirement Thrift


                                             Investment Board,

                                 Washington, DC, November 9, 1995.
     Hon. James P. Moran, Jr.,
     Ranking Member, Subcommittee on Civil Service, U.S. House of 
         Representatives, Washington, DC.
       Dear Congressman Moran: I have reviewed H.R. 2586 which 
     provides for a temporary extension of the Federal debt limit. 
     The proposed legislation provides for the repeal, inter alia, 
     of 5 U.S.C. Sec. 8438(g), which was enacted on May 22, 1987, 
     to prevent harming Federal employees with investments in the 
     Thrift Savings Plan's G Fund. It was foreseen at that time 
     that, during periods of constraint on the issuance of 
     Treasury securities brought about by the debt limit, the 
     moneys of Federal employees in the G Fund would irretrievably 
     lose interest (since they could not be invested) but for this 
     carefully drafted, bipartisan ``make-whole'' provision. (The 
     enclosed letter from former Executive Director Francis 
     Cavanaugh forwarded the proposed legislation (not included) 
     to Congress in April 1987, and it was quickly enacted.)
       A repeal of this provision at this time would cost Federal 
     employees invested in the G Fund more than $3.5 million per 
     day of debt limit constraint, an amount that, once lost, will 
     never be recaptured. That Federal employees' retirement funds 
     might be thus diminished is a matter of great concern to 

[[Page H 12010]]
     me and my fellow fiduciaries, as I am sure it is to you.
       All of the provisions of the proposed legislation can be 
     enacted without harm to Federal employee' retirement funds 
     except for the repeal of Sec. 8438(g) (and its administrative 
     concomitant, Sec. 8438(h). That is, the purpose of the 
     proposed draft legislation can be fully met, as set forth in 
     its accompanying two-page explanation, with the deletion of 
     the words ``, and subsections (g) and (h) of section 8438 of 
     such title'' on page 6, lines 7 and 8. (The other provisions 
     to be repealed pertain to the Civil Service Trust fund; 
     because that fund is not owned by employees directly, their 
     ultimate benefit levels as derived therefrom are unaffected.)
       If the bill were passed in its present form, the 
     fiduciaries of the Thrift Savings Plan would be obligated to 
     point out the needless and costly removal by Congress of a 
     protection for Federal employees intended to prevent debt 
     limit politics from impairing the integrity of their 
     retirement funds. (The ``make-whole'' provision of 
     Sec. 8438(g) has been employed on four separate occasions in 
     the past to restore interest otherwise lost to Federal 
     employees from debt limit hiatuses.)
       I have sent a similar letter to Congressman John Mica. I am 
     asking your and his cooperation in preventing any repeal of 
     Sec. 8438(g) in order to safeguard Federal employees' 
     retirement moneys and ensure their confidence in the G Fund, 
     which, at $21.5 billion currently, comprises approximately 
     \2/3\ of total Thrift Savings Plan investments.
           Sincerely,
                                                   Roger W. Mehle,
                                               Executive Director.
       Enclosure.
                                                                    ____

                                         Federal Retirement Thrift


                                             Investment Board,

                                   Washington, DC, April 30, 1987.
     Hon. Jim Wright,
     Speaker of the House of Representatives, Washington, DC.
       Dear Mr. Speaker: The Federal Retirement Thrift Investment 
     Board respectfully submits the enclosed draft bill to prevent 
     the loss of interest earnings to federal employees in the 
     Thrift Savings Plan (Plan) which would otherwise result from 
     a temporary suspension of the authority of the Secretary of 
     the Treasury to issue public debt obligations to the Plan.
       The Federal Employees' Retirement System Act of 1986 (5 
     U.S.C. 8401-8479) established a tax-deferred Thrift Savings 
     Plan for federal employees. Effective April 1, 1987, all 
     government and employee contributions to the Plan must be 
     invested in Treasury securities issued to the Government 
     Securities Investment Fund (GSIF) of the Plan. Since such 
     securities, like other Treasury debt issues, are subject to 
     the statutory limit on the amount of public debt outstanding, 
     the Secretary will be unable to issue such securities to the 
     GSIF after May 15 unless Congress acts on debt limit 
     legislation by that date.
       The present temporary public debt limit of $2.3 trillion is 
     due to expire on May 15, 1987, on which date the debt limit 
     will revert to the permanent statutory ceiling of $2.1 
     trillion.
       We understand that the Treasury Department advised Congress 
     today, in testimony before the House Ways and Means Committee 
     that the Department expects to have sufficient cash on May 15 
     so that an increase in the debt ceiling would not be 
     necessary until May 28. Nevertheless, beginning May 16 the 
     Treasury will be unable to issue any securities subject to 
     the debt limit, including securities issued to the GSIF. 
     Thus, if Congress does not act on debt limit legislation 
     prior to May 16, the GSIF will lose interest; there is no 
     authority for the Treasury to pay such interest at a later 
     date to make up for such losses.
       The proposed legislation would provide the same treatment 
     to the Thrift Savings Plan as is now provided by law (P.L. 
     99-509) to the Civil Service Retirement Fund. This treatment 
     requires the Treasury to make up any loss of earnings to the 
     Fund created by a suspension of Treasury borrowing authority.
       Although the bill seeks parity of treatment with the Civil 
     Service Retirement Fund, it is important to note that the 
     Thrift Savings Plan is different from the Civil Service 
     Retirement System (CSRS) in that the Thrift Savings Plan is a 
     wholly voluntary, defined contribution plan; whereas CSRS is 
     a mandatory, defined benefit plan. CSRS plan benefits do not 
     depend directly on the amount of the Fund's interest 
     earnings. The employer-employee contributions to the Thrift 
     Savings Plan, although held
       in the custody of the Treasury Department, actually belong 
     to the individual employees. Accordingly, Congress intended 
     that the Thrift Investment Board be a financially independent 
     agency and exempted the Board from the appropriations 
     process, the budget, and the controls of the Executive Office 
     of the President which apply to other federal agencies. Yet, 
     perhaps inadvertently, Congress did not insulate the Board or 
     the Plan from the constraints of the public debt limit.
       The Board believes that obligations issued to the GSIF 
     should clearly be exempt from the public debt limit 
     constraints. Yet, in view of the urgent need for timely 
     legislative action before May 15, we are requesting only that 
     the Plan be accorded the same treatment as the Civil Service 
     Retirement Fund.
       Federal employees have been urged to deposit their funds in 
     the Thrift Savings Plan upon the representation that such 
     funds will be safely invested in government securities with a 
     guaranteed rate of return based on a prescribed statutory 
     interest rate formula. The Board has an obligation to federal 
     employees to make every effort to see that this commitment is 
     honored. Now, at the very beginning of the Plan, it is 
     especially important that there be no question as to the 
     integrity of the government's representation as to such 
     investments. In order to prevent unnecessary fear and 
     confusion on this point, we urge Congress to act on the 
     enclosed bill as soon as possible and before any suspension 
     of Treasury borrowing authority occurs.
       We are sending a similar letter to the President of the 
     Senate. Copies have been sent to the Director of the Office 
     of Management and Budget.
           Sincerely,
                                             Francis X. Cavanaugh,
                                               Executive Director.
       Enclosure.
                                                                    ____


                          Summary of the Bill

       The purpose of the bill is to ensure that the federal 
     employees' Thrift Savings Plan (Plan) does not suffer a loss 
     of earnings in its Government Securities Investment Fund in 
     the event of a temporary suspension of borrowing authority of 
     the United States Treasury Department, due to the statutory 
     public debt limit.
       The bill provides that, in the event the Secretary of the 
     Treasury suspends additional issuance of Treasury securities 
     to the Government Securities Investment Fund because such 
     issuance would exceed the debt limit, immediately upon 
     lifting of the borrowing suspension, the Secretary of the 
     Treasury shall issue securities to the Plan at interest rates 
     and maturities which will replicate the obligations that 
     would have been held by the Plan if the suspension had not 
     occurred. This ``make-whole'' relief will include the payment 
     of any interest the Plan loses as a result of the suspension. 
     Both the obligations and the interest will be determined in 
     accordance with the daily investment decisions made by the 
     Federal Retirement Thrift Investment Board during the 
     suspension period which would have been effective were it not 
     for the suspension.
       The treatment accorded to the Plan by the bill is similar 
     to that accorded to the Civil Service Retirement and 
     Disability Fund in Section 6002 of the Omnibus Budget 
     Reconciliation Act of 1986, except that the bill recognizes 
     the statutory responsibility of the Executive Director (5 
     U.S.C. 8438(f)(2)(A)), rather than the Secretary of the 
     Treasury, to determine the amounts and maturities of the 
     investments in the Government Securities Investment Fund.

  Mr. ARCHER. Mr. Speaker, I yield 3 minutes to the gentleman from 
Florida [Mr. Stearns].
  Mr. STEARNS. Mr. Speaker, I rise today in support of this bill, but 
obviously, like many, I do so with some reluctance. While I have often 
opposed raising the debt ceiling, because of our efforts this bill 
includes a pledge to achieve a CBO-scored balanced budget in 7 years. I 
call attention to my colleagues on both sides of the aisle, this pledge 
is in the rule committing the President and Congress to enact in the 
year 1995, the calendar year, legislation for a balanced budget by the 
year 2002. It affirms the intent of Congress and the President to do 
so, and it is in black and white, and it is part of this package that 
we are voting on.
  This, my friends, is the crux of our Contract With America. This is 
why we have the responsibility today to be responsible. Do I like 
raising the debt? Obviously I do not. But, for this reason, and for 
this language, I intend to vote for this raising of the debt to 
ultimately balance the budget. However, Mr. Speaker, what is also a 
concern of mine is that without certain provisions in this bill, that 
Chairman Archer made sure were in this bill, the Clinton administration 
could dip into supposedly safe trust funds such as the Social Security 
trust fund, the Medicare trust fund, and the Federal retiree trust 
fund.

                              {time}  1430

  I find this totally unacceptable and, frankly, so do the American 
taxpayers. Yet the President is threatening to veto this bill because 
we refuse to let the administration raid the Social Security, Medicare, 
and Federal retiree trust funds. That is what the people on the other 
side are saying. These trust funds should not see their assets reduced 
even temporarily. It sets a bad precedent of encouraging the Treasury 
Department to raid these funds. Without this amendment in the bill, the 
money paid into these funds would be diverted to pay for other 
services.
  Mr. Speaker, this is not the American way, and this should not be 
done. The American people have placed their trust in us to manage their 
funds, to protect their investments. We cannot let them down.
  I urge my colleagues, it is time to be responsible to pass this bill 
and to pass 

[[Page H 12011]]
a balanced budget amendment that will eliminate the need after almost 
40 years of Democrat control for such legislation in the future.
  Mr. GIBBONS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Minnesota [Mr. Sabo].
  (Mr. SABO asked and was given permission to revise and extend his 
remarks.)
  Mr. SABO. Mr. Speaker, I thank the ranking member for yielding me the 
time.
  Mr. Speaker, we should vote this bill down. We should be passing a 
clean continuing resolution or a clean debt limit extension for a 
reasonable time.
  Why are we here today? We are here because this is the most 
mismanaged legislative session I have seen in 35 years serving in 
legislative office. It is November 9. The fiscal year began October 1. 
I fully expected we would need a continuing resolution because the 
majority would have passed appropriation bills, they would have been 
vetoed in some cases, and the Congress and administration would be 
negotiating. Instead, 9 of 13 bills have not passed the Congress. So we 
need a continuing resolution.
  Why do we need this bill on the debt ceiling? Because it is now 
November. The Congress is doing what it should have been doing in July, 
should have been passing its budget bill, sending it to the President, 
probably vetoed, then serious negotiations occurring.
  Instead, we have drifted along all session doing what was not 
crucial; and here, a month and a half into the fiscal year, the House 
and Senate is still dealing with the conference report. Shame on us. If 
we had done our work, this bill would have been on the President's desk 
before the August recess as it was 2 years ago, negotiations could have 
occurred in September, maybe into mid-October, and had a solution. 
Instead, total mismanagement. Mid-November, no budget bill, most of the 
appropriation bills still hung up in the Congress. Instead, we find 
ourselves with a debt ceiling extension, with habeas corpus and 
Commerce and I do not know what all else is in here.
  Mr. Speaker, we should defeat this bill.
  Mr. GIBBONS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Maryland [Mr. Hoyer].
  Mr. HOYER. Mr. Speaker, I thank the ranking member for yielding me 
the time.
  Mr. Speaker, I said yesterday that we started this Congress with the 
Contract With America. There were 10 items essentially. Two out of the 
first three talked about responsibility. The first item talked about 
responsibility. The third item talked about personal responsibility. I 
tell my friends on the Republican side of the aisle that this bill is 
neither fiscally responsible nor it is personally responsible; and, 
yes, we ought to be ashamed of playing with the credit of the United 
States of America as we are doing.
  This is not a serious attempt at responsible Government. It contains 
extraneous matters unrelated to the critical issue of making sure 
America pays it bills. Every American thinks its Government ought to do 
that.
  But that's not what we're doing today. This bill is loaded down with 
unrelated provisions that have nothing to do with the problem before us 
and will cause the President to veto this legislation.
  Just like yesterday's continuing resolution, which the President has 
also indicated he will veto, this is not a serious attempt at 
responsible Government.
  I am afraid that the message to Federal employees is: Don't consider 
this a holiday weekend because you may not have a job next week.
  The Republican leadership seems determined to close down Government 
operations.
  They are taking the CR and the debt limit extension down the path to 
the same fate as many of the appropriations bills--stuck in the mud of 
political partisanship.
  This Government is not put at risk by this irresponsibility with 
which we are confronted today. They want to up Social Security and 
Medicare payments by $151 per recipient in this bill. That ought to be 
debated fully. Habeas corpus, that may be a good bill, but it is not 
subject to having an impact on the debt of the United States. Eliminate 
the Commerce Department, a 200-page bill that the President disagrees 
with. You put at risk the credit of the United States.
  This debt limit extension measure also limits the Secretary of the 
Treasury's ability to manage Federal employee investments in the thrift 
savings plan as well as their retirement fund.
  These provisions have nothing to do with allowing the Treasury 
Department to continue to borrow money.
  Auctions have already been canceled because of the Republican 
leadership's failure to act.
  I am gravely concerned about the impact of not passing a CR and debt 
limit extension on Federal employees. They have been attacked again and 
again in this Congress and now the leadership is threatening to send 
them home on furlough.
  Those in the Congress who claim to be Federal employee advocates and 
then vote for these extreme measures are, in my opinion, undermining 
the security of those Federal employees whom they claim to represent.
  This is not a rhetorical issue. This is real fear for civil servants 
who have families to feed and mortgages to pay. The lives of Federal 
employees are once again being thrown into chaos as the Republicans 
pursue their extreme agenda.
  Ladies and gentlemen of this House, ladies and gentlemen of America, 
this bill is a patently petty political terrorist tactic. That is what 
it is. An attempt to force the President of the United States to adopt 
things that you cannot get through your own Senate, not just the 
Congress. This bill adopts tactics that put America as a hostage to an 
extremist agenda.
  Mr. HASTERT. Mr. Speaker, I ask that the gentleman's words be taken 
down.
  The SPEAKER pro tempore (Mr. Hobson). The Clerk will report the 
words.

                              {time}  1445

  Mr. HOYER. I would be glad to repeat them if you would like just so 
they are clear on the Record.
  The SPEAKER pro tempore (Mr. Hobson). The gentleman shall refrain 
from speaking.
  The Clerk will report the words.
  The Clerk read as follows:

       Ladies and gentlemen of this House, ladies and gentlemen of 
     America, this bill is a patently petty political terrorist 
     tactic, that is what it is, an attempt to force the President 
     of the United States to adopt things that you cannot get 
     through your own Senate, not just the Congress. This bill 
     adopts tactics that put America as a hostage to an extremist 
     agenda.

  The SPEAKER pro tempore. The Chair rules that since this is not a 
reference to an individual Member, that the remarks are in order.
  However, the Chair would observe that there is a civility within the 
House in addressing bills and Members that should be observed, and it 
would be hoped that in the future that would be observed by all 
Members.
  Mr. HOYER. I thank the Speaker for his ruling.
  The SPEAKER. The time of the gentleman from Maryland [Mr. Hoyer] has 
expired.
  Mr. ARCHER. Mr. Speaker, I yield 3 minutes to the gentleman from 
Pennsylvania [Mr. Walker].
  Mr. WALKER. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  Mr. Speaker, I believe that there is a legitimate concern about the 
use of trust funds that has been mentioned earlier, and that the reason 
why some who are coming to the floor are suggesting that they want to 
give the administration total latitude on these issues is because, I 
think, they are probably aware that the administration intends to use 
the civil service retirement trust funds, the Government securities 
investment fund, other cash, and perhaps even the Social Security trust 
fund as the way of financing our debt into the future.
  Now, we have heard discussion on the floor about the fact that we do 
not want to default for the first time in history. The fact is we have 
never used the Social Security trust fund for anything other than 
Social Security payments at any time in history, either, and yet what 
we are being told by this administration and by those defending the 
administration on the floor, they are prepared, in pursuit of their 
political agenda, to allow the Social Security trust fund to at some 
point in the future be invaded for the purposes of paying the bills.
  Now, our direction has been to try to balance the budget. We realize 
that that takes a lot of hard work. We realize it has been an uphill 
fight, with those who are opposed to that agenda fighting us every step 
of the way to see 

[[Page H 12012]]
to it these bills do not get passed. We realize there has been a 
concerted effort to try to stop bills in other places in the Capitol 
Building so that, in fact, the work cannot get completed, and now we 
come down to the point where there is no longer an ability to pay the 
debts that have been incurred over the last several years.
  Now we are being told that the Social Security trust fund should be 
put in jeopardy in the future. I would suggest that we ought to pass 
the bill that is before us. Yes, it does contain a number of items in 
it that we think are good for the country, such as regulatory reform, 
we hope, after that amendment is adopted, habeas corpus reform, and a 
number of other things. Fundamentally, what it does is allow the 
President to borrow temporarily, and does so in a way that assures 
protection of the trust funds.
  Why do I say that we believe all this is happening? We have heard it 
directly from the Department of the Treasury.
  I have before me materials that indicate that the Department of the 
Treasury is prepared in fact to begin using the civil service 
retirement and disability fund. At a press briefing yesterday, they 
outlined about $28 billion of money they are going to use, first out of 
the Government securities investment fund, then out of civil service 
retirement, then out of other petty cash amounts, and the next step 
down the line, my friends, is the Social Security trust fund.
  That is, I think, a very grave danger for us all. the way that you 
can prevent that kind of problem from occurring is to vote for the bill 
brought to you by the gentleman from Texas [Mr. Archer], assure that we 
do protect the Social Security trust fund now and into the future, 
assure we do have the ability to raise the debt limit enough to pay our 
bills and, oh, by the way, get a couple of things done good for 
America, such as eliminating a Cabinet department and giving this 
Nation regulatory reform.
  Mr. GIBBONS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am placing in the Record at this point a statement 
made by the Secretary of the Treasury on the subject matter under 
debate.
  The referenced material is as follows:

  Statement of Treasury Secretary Robert E. Rubin and Social Security 
                     Commissioner Shirley S. Chater

       As Trustees of the Social Security Trust Funds we want to 
     assure the American people that the resources of the Funds 
     are preserved and protected for the benefit of every American 
     who is now, or will in the future become, entitled to receive 
     Social Security benefits.
       Questions have arisen recently whether, because of the 
     failure by Congress to increase the national debt limit, the 
     resources of the Funds might be used to provide funds for 
     governmental purposes unrelated to the payment of Social 
     Security benefits. This is our reply: The Social Security 
     Trust Funds will not be used for any purpose other than to 
     assure the payment of benefits to Social Security recipients. 
     We will continue to protect Social Security.
       Furthermore, Congress should increase the statutory debt 
     limit in a manner so all of the government's obligations will 
     be paid on time. The Ways and Means Committee's bill, 
     however, leaves Medicare, Medicaid, Food Stamps, Supplemental 
     Security Income, veterans and military personnel, and 
     obligations such as the principal and interest on the public 
     debt all at risk. This is simply not acceptable.
       In sum: this Administration will not use Social Security 
     Trust Funds for any purpose other than to assure the payment 
     of benefits to Social Security recipients.

  Mr. GIBBONS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Virginia [Mr. Scott].
  Mr. SCOTT. Mr. Speaker, I rise in opposition to the resolution, and 
in particular the provision involving death row appeals.
  Mr. Speaker, the provisions in this bill are different from the 
provisions in the House-passed bill, and these provisions have been 
sprung on us in the last 24 hours.
  Mr. Speaker, the provisions of this will do nothing to reduce crime. 
Death row inmates are not the ones out there robbing, raping and 
murdering in the streets. There is not even anecdotal evidence these 
inmates are the cause of crime in our community.
  Mr. Speaker, we have not addressed the problem of innocent people 
being put to death. It was reported in the New York Times this Sunday 
that a man who had been on death row for 11 years in Illinois was 
released after being acquitted when a subsequent trial disclosed that a 
police officer had lied in the first trial.
  What have we done about the police officer lying? Yesterday we had a 
hearing on a bill that would limit the civil liability of the police 
officer who lied, and today we consider legislation that will put the 
defendant to death quicker so it will be less likely we ever could have 
found out the truth.
  Mr. Speaker, if we are going to do something about crime, we need to 
do something different than what we have done so far this year, such as 
cut funding for attorneys and death row appeals, which will create more 
complications and more appeals. We have cut funding for crime 
prevention and cops on the beat; cut funding for summer jobs, putting 
more youth out on the streets; cut funding for college scholarships and 
Head Start. All of that will increase crime.
  If we really wanted to do something about crime, we would increase 
the money for Head Start, summer jobs, college scholarships, crime 
prevention and cops on the beat, and not insert these useless sound 
bites in essential legislation.
  Mr. Speaker, we should focus on the financial crisis before us and 
not sneak provisions such as this through a debt ceiling resolution.
  Mr. ARCHER. Mr. Speaker, I yield 2 minutes to the gentleman from 
Georgia [Mr. Collins], a member of the Committee on Ways and Means.
  Mr. COLLINS of Georgia. Mr. Speaker, I thank the gentleman for 
yielding me this time.
  Mr. Speaker, I rise in support of the resolution by the chairman to 
increase the debt limit, but I do so with some reluctance.
  I hate to see us increase the debt that the taxpayers of this country 
owe and that I know that our children will someday have to pay. But I 
also know that if we are going to reach a balanced budget over the 7 
years, as we have planned and as we have passed in both bodies, that we 
will have to extend that debt limit. I understand that there is a lot 
of confusion and controversy about how we are going to do that, and it 
will take a couple, 2, 3 more weeks to really rectify those 
differences.
  So, therefore, we must increase the funding and the borrowing power 
of our Government.
  The thing that I like about this bill or this proposal is it will 
restrict the use of trust funds. But, Mr. Speaker, you have heard the 
old saying, ``A day late and a dollar short.'' Well, sir, I think we 
are years late and several billon dollars short, because out of the 
$4.9 trillion that we currently owe as the debt, the debt that is owed 
by the taxpayers that has been created by the Congress, $1.25 trillion 
of it is actually owed to trust funds, trust funds that people have 
contributed to that they expect someday to receive in return.
  Let me give you some of those amounts, Mr. Speaker. The Federal 
employee's trust fund, some $375 billion owed by Treasury to that trust 
fund; the Medicare part A trust fund, $130 billion owed by Treasury to 
that trust fund; VA retirement, over $112 billion owed to that trust 
fund by the Treasury; and Social Security, Mr. Speaker, some $483 
billion of old age pension, part of my old age pension, owed to the 
trust fund by the Treasury.
  Mr. Speaker, I am including at this point in the Record a table 
concerning the trust fund impact on budget results and investment 
holdings as of September 30, 1995:

[[Page H 12013]]

  


                               TABLE 8.--TRUST FUND IMPACT ON BUDGET RESULTS AND INVESTMENT HOLDINGS AS OF SEPT. 30, 1995                               
                                                                [In millions of dollars]                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                   This month                        Fiscal year to date              Securities held as investments,   
                                    ------------------------------------------------------------------------------          current fiscal year         
                                                                                                                  --------------------------------------
           Classification                                                                                                Beginning of                   
                                       Receipts     Outlays       Excess      Receipts     Outlays       Excess   --------------------------   Close of 
                                                                                                                    This year    This month   this month
--------------------------------------------------------------------------------------------------------------------------------------------------------
Trust receipts, outlays, and                                                                                                                            
 investments held:                                                                                                                                      
    Airport........................          333          777         -445        6,125        7,242       -1,117       12,206       11,547       11,145
    Black lung disability..........          416          426          -46          987          987         (**)          (*)          (*)          (*)
    Federal disability insurance...        4,749        3,606        1,143       70,215       41,380       28,835        6,100       34,146       35,225
    Federal employees life and                                                                                                                          
     health........................          (*)         -145          145          (*)       -1,240        1,240       22,503       23,601       23,729
    Federal employees retirement...       24,375        3,268       21,108       66,821       38,899       27,923      346,317      353,081      374,219
    Federal hospital insurance.....        9,150       10,271       -1,121      114,847      114,883          -36      128,716      180,931      129,864
    Federal old-age and survivors                                                                                                                       
     insurance.....................       26,560       24,569        1,991      326,084      294,474       31,611      403,425      445,944      147,947
    Federal supplementary medical                                                                                                                       
     insurance.....................        1,746        5,903       -4,157       58,169       65,213       -7,044       21,489       17,675       13,513
    Highways.......................        2,115        2,340         -226       23,613       22,688          925       17,694        8,846        8,531
    Military advances..............          967        1,314         -347       12,469       13,417         -948          (*)          (*)          (*)
    Railroad retirement............          451          675         -224        9,093        7,924        1,169       12,203       14,063       14,440
    Military retirement............          918        2,386       -1,468       34,624       27,797        6,827      105,367      114,320      112,963
    Unemployment...................          336        1,801       -1,465       32,820       25,282        7,539       39,788       48,660       47,141
    Veterans life insurance........           23          110          -86        1,356        1,231          126       13,477       13,690       13,606
    All other trust................          525          555          -30        6,056        4,346        1,710       12,317       14,180       14,060
                                    --------------------------------------------------------------------------------------------------------------------
        Total trust fund receipts                                                                                                                       
         and outlays and                                                                                                                                
         investments held from                                                                                                                          
         Table 6-D.................       72,665       57,893       14,772      763,281      664,521       98,760    1,151,601    1,240,682    1,256,385
    Less Interfund transactions....       27,150       27,150  ...........      212,849      212,849          (*)  ...........  ...........  ...........
                                    --------------------------------------------------------------------------------------------------------------------
        Trust fund receipts and                                                                                                                         
         outlays on the basis of                                                                                                                        
         Tables 4 and 5............       45,515       30,742       14,772      550,432      451,671       98,760  ...........  ...........  ...........
                                    ====================================================================================================================
        Total Federal fund receipts                                                                                                                     
         and outlays...............      100,994      108,480       -7,486      835,221    1,097,794      262,573  ...........  ...........  ...........
    Less Interfund transactions....          443          443          (*)          975          975          (*)  ...........  ...........  ...........
                                    --------------------------------------------------------------------------------------------------------------------
        Federal fund receipts and                                                                                                                       
         outlays on the basis of                                                                                                                        
         Tables 4 and 5............      100,551      108,037       -7,486      834,245    1,096,819     -262,573  ...........  ...........  ...........
                                    ====================================================================================================================
    Less: Offsetting proprietary                                                                                                                        
     receipts......................        2,846        2,846          (*)       34,101       34,101          (*)  ...........  ...........  ...........
                                    ====================================================================================================================
        Net budget receipts and                                                                                                                         
         outlays...................      143,219      135,933        7,286    1,350,576    1,514,389     -163,813  ...........  ...........  ...........
--------------------------------------------------------------------------------------------------------------------------------------------------------
*No transactions.                                                                                                                                       
                                                                                                                                                        
Note: Interfund receipts and outlays are transactions between Federal funds and trust funds such as Federal payments and contributions, and interest and
  profits on investments in Federal securities. They have no net effect on overall budget receipts and outlays since the receipts side of such          
  transactions is offset against budget outlays. In this table, Interfund receipts are shown as an adjustment to arrive at total receipts and outlays of
  trust funds respectively. Details may not add to totals due to rounding.                                                                              
                                                                                                                                                        
Source: U.S. Treasury, final monthly Treasury statement of receipts and outlays, September 1995.                                                        

  Mr. GIBBONS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Michigan [Mr. Conyers].
  (Mr. CONYERS asked and was given permission to revise and extend his 
remarks.)
  Mr. CONYERS. Mr. Speaker, first, my thanks to the gentleman from 
Florida [Mr. Gibbons] for his courtesies and tenacity in this debate.
  Members of the committee, it is pathetic that in a several hundred 
page bill that was delivered to the Democrats on the Judiciary at 10:45 
a.m. this morning, 27 pages of habeas corpus reform of the Senate's 
that we have never seen, never read, never discussed, never debated, 
never.
  Why? This is the short-term debt ceiling limitation bill. What in 
God's name is habeas corpus doing in this provision? You can pass it, 
Republicans, anyway separately, I guess. You have been rolling all the 
votes here for 10 months. But why stick it in overnight? Is there some 
logic that this could be happening here in the most democratic forum, 
the most democratic, fairest parliamentary system that we have in the 
Federal Government?
  But worse than that, this provision limits review in other habeas 
cases. And my colleagues who have been so concerned about civil rights 
violations by Federal law enforcement, read Ruby Ridge and Waco, that 
now they want to leave Federal law enforcement and judges with no way 
to protect against overzealous Federal law officers who may not have 
acted lawfully.
  It is pathetic that habeas reform has been tucked away in the debt 
ceiling package. Habeas reform has absolutely nothing to do with short-
term debt and I cannot help but wonder why the Republicans, who control 
both Houses of Congress need to attempt to pass habeas reform in this 
underhanded manner.
  My colleagues should make no mistake, this so-called habeas reform 
bill does not reform habeas corpus law, it all but eliminates Federal 
appeals in death penalty cases.
  This bill will also limit review in other habeas cases. My colleagues 
on the right who have been so concerned about civil rights violations 
by Federal law enforcement officers may find that they are left with no 
remedy when a lower court judge finds that those overzealous Federal 
officers acted lawfully.
  There are some particularly egregious elements in this habeas bill. 
The worst provision is that all condemned inmates will be limited to 
only one appeal in Federal court and this appeal must be within 1 year 
of conviction. In addition, if a State agrees to compensate attorneys 
who represent defendants in habeas cases, that time period is reduced 
to 6 months with Federal courts directed to review habeas cases with 
undue haste.
  The bill also says that no Federal court may grant habeas corpus to a 
State prisoner if State courts had decided his or her claim on the 
merits--unless the State decision was ``contrary to, or involved an 
unreasonable application of'' Federal constitutional law as determined 
by the Supreme Court.
  This means that Federal judges must overlook even incorrect State 
rulings on constitutional law claims so long as they are not 
``unreasonably'' incorrect. It is a new and remarkable concept that 
mere wrongness in a constitutional decision is to be ignored.
  The habeas bill has numerous other provisions, all designed to 
further the goal of reaching finality in death penalty cases. It 
includes a ``rule of deference'' to State court determinations of 
Federal constitutional law. This means that contrary to logic and 
precedence, State courts, not Federal courts, are the final arbiters of 
Federal constitutional law.
  The bill also places new restrictions upon the availability of 
hearings by allowing hearings only when there is new, retroactive law 
or facts that could not have been presented earlier. Moreover, those 
facts must establish by clear and convincing evidence that the 
petitioner would not be found guilty of the underlying offense.
  Finally, the bill provides that claims litigated, even constitutional 
violations are barred from second or successive applications and new 
claims can be heard on their merits only if they rely upon a new 
retroactive Supreme Court decision or upon facts that could not have 
previously been discovered, but only if the petitioner shows by clear 
and convincing evidence that but for the constitutional error, no 
reasonable jury would have voted to convict.
  These provisions make clear that the desire to ensure finality has 
not been counterweighted by any provisions designed to ensure fairness 
or correct decisions.
  The terrible legal representation that many death row prisoners 
receive in their initial trials is a key cause of delays, appeals, and 
reversals in capital cases. Federal courts have found constitutional 
errors warranting reversal or retrial in about 40 percent of death row 
cases since the reinstatement of capital punishment. Yet this bill does 
nothing to address the critical problem. It provides no standards for 
lawyers who represent habeas defendants.
  This habeas reform proposal will leave habeas corpus in a shambles 
and leave Federal judges confused and overworked. If my colleagues are 
not persuaded solely by the substantive arguments against his bill, 
they should at least consider why the Republicans--who control both the 
House and the Senate--have 

[[Page H 12014]]
bypassed the standard procedures and instead included this provision in 
the totally unrelated debt ceiling package.
  Mr. ARCHER. Mr. Speaker, I yield 2 minutes to the gentleman from 
Michigan [Mr. Smith].
  Mr. SMITH of Michigan. Mr. Speaker, through you to the chairman and 
the ranking member of the Committee on Ways and Means, would not it be 
interesting if the President decides to go into these trust funds for 
disinvestment, and the people of the United States find out that there 
is no money in these trust funds, that they are void of the kind of 
cash that a lot of people imagine, and it is only a bookkeeping, an 
accounting entry?
  You know, I think if all the people of the United States knew that in 
these trust funds there was little, if any, money, they would say, 
``Hey, Congress, enough is enough. Get on the ball. Balance the budget, 
do not wait 7 years, do it in much less time, because our future is at 
stake.''
  You know, we hear comments about all of the add-ons on this bill. I 
for one do not think those add-ons should be on this bill. But is it 
not interesting, for the last 12 years the Democrats have had the 
Gephardt rule, rule 41, so they did not have to vote directly on 
increasing the debt ceiling and said, ``Look, we are just going to 
automatically increase that every time we pass a budget resolution that 
is greater than the amount that we have coming in in revenues; 
therefore it goes up automatically.''

  I am concerned that we do not have a reconciliation bill before the 
President. Let us get that reconciliation bill to the President as 
quickly as we can. Let us work this weekend, but I took to the 
Committee on Rules last night language that says let us stop borrowing 
marketable debt after 2002. We owe it to future generations, our kids 
and our grandkids.
  Mr. GIBBONS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Connecticut [Mr. Gejdenson].
  Mr. GEJDENSON. Mr. Speaker, the resolution that is brought before us 
today again tries to carry out the extreme ideology of the new majority 
in this Congress; not enough to attack education and the ability of 
young people to get a college education, not enough to go after 
Medicare and Medicaid, but an attempt to cripple our economy by 
undermining the Commerce Department.
  Yes, ideology says we have to shrink Government, so that every other 
nation has a leading cabinet level, powerful individual to deal with 
commerce that keeps the economy alive. But, no, this extreme ideology 
says we are getting rid of that.
  The United States spends 3 cents out of every $1,000 of GDP on export 
promotion. Japan spends 12 cents, France, 18, and England, 25.
  American workers are going to be left behind. American workers are 
going to be left behind if we shut down the Commerce Department, not to 
save money in the process, no; this is simply an ideological drill to 
test if you are willing to follow every dictum of this new extreme 
ideology: Get rid of the Commerce Department, cripple our export 
policy, take away the ability of American corporations to compete, more 
unemployment at the end of the day and a higher deficit.
  Yes, let us not have a debate on this issue. Let us just sneak it 
through when we are doing the debt limit. This is the wrong kind of 
policy. It is the wrong kind of politics. It is a long-term damage to 
the American worker, and we ought to oppose it for that alone.
  Mr. ARCHER. Mr. Speaker, I yield 2 minutes to the gentleman from 
Michigan [Mr. Chrysler].
  Mr. CHRYSLER. Mr. Speaker, I appreciate this opportunity.
  I have sat and listened to an awful lot of this debate. I have 
listened about the bad Government that is happening here. I think the 
only bad Government that happened is the 40 years before I got here.
  The President, you know, has supported all or parts of this package 
in whatever speech he was giving on that particular day over the last 
10 months.
  When it comes to, you know, worrying about this media-manufactured 
train wreck, we hear from market people all over this country, and they 
say do not blink. The most important thing that this Congress can do is 
to balance the budget, and part of that balancing of the budget is 
dismantling the Department of Commerce.

                              {time}  1500

  The Commerce Department is the Government's attic. It is where you 
throw everything when you do not have any place else to put it. In 
fact, 60 percent of the Department of Commerce has absolutely nothing 
to do with commerce at all. It is the Weather Service, it is the Census 
Bureau and the Patents and Trademarks.
  If the Department of Commerce was in fact the voice for business that 
the previous speaker just talked about, then it would be supporting a 
balanced budget, it would be supporting a capital gains tax cut, it 
would be supporting tort reform, and it would be supporting regulatory 
reform. In fact, it is diametrically opposed to all of those things. In 
fact, in a Business Week magazine poll that was taken just a few months 
ago, two out of the three business executives in that poll were in 
favor of dismantling the Department of Commerce.
  We have taken a very logical and methodical plan forward that takes 
about 30 months. We said we are going to eliminate the programs that 
are unnecessary, we are going to privatize the programs that can be 
better done by the private sector, and we are going to streamline the 
beneficial programs, the ones we need to keep, and we are going to 
consolidate the duplicative programs.
  Mr. GIBBONS. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from Florida [Mr. Hastings].
  Mr. HASTINGS of Florida. Mr. Speaker, I thank the ranking Member for 
yielding me time.
  Mr. Speaker, this bill makes draconian cuts in NOAA's budget which 
would effectively shut down crucial operations in many areas of the 
country. The cuts made in this bill jeopardize NOAA's ability to 
provide accurate and timely weather prediction, thereby putting all our 
lives in danger. If these cuts are enacted we will not be giving NOAA 
the money it needs to function properly and hundreds of lives and 
billions of dollars will be needlessly lost.
  Floridians, having survived some of the most brutal storms in the 
world, are dependent on weather information and strongly support 
efforts to improve operational weather and forecast services. I do not 
understand why this Congress wants to endanger the lives of people in 
my home State by closing 62 of the 118 weather forecast offices, such 
as those in Miami, Melbourne, Tampa, Jacksonville, and Tallahassee, FL.
  In addition to fewer offices, NOAA will lose one-half of its 
satellite capability, thus increasing the chance of a total satellite 
blackout. This bill would also decrease the number of storm surge 
models, resulting in chaotic evacuation procedures in large areas and a 
greater risk of fatalities. To make matters worse, the bill terminates 
funding for NOAA's P-3 hurricane aircraft, thereby reducing the 
accuracy of hurricane landfall predictions.
  It is ludicrous that the majority would advocate an arbitrary 
reduction in funding for NOAA in the name of change. Mr. Speaker, some 
things, like the Government's responsibility for the health and safety 
of its citizens, should not be subject to political posturing. Change 
is good if it helps. But these cuts do not serve the public interest. 
And after all, is that not why we are here?
  Mr. Speaker, let me ask the gentleman from Texas [Mr. Archer], for 
example, are the provisions in this bill we are considering today the 
same as the provisions considered 2 weeks ago in the reconciliation 
bill? Is it not true that 2 weeks ago the House approved 25-percent 
reductions in this Nation's weather programs, and in this bill, in 
section 2206, you have upped the ante to 35 percent? What is the impact 
of an additional 10-percent reduction in severe weather forecasting for 
this country? All of this is absurd.
  Mr. ARCHER. Mr. Speaker, I yield 2 minutes to the gentleman from 
Florida [Mr. Scarborough].
  Mr. SCARBOROUGH. Mr. Speaker, let me just say as a member of the 
Florida delegation who has had two hurricanes tear through my area in 
the past few months and devastate the beaches and the homes there, the 
last thing I would ever do is vote for anything that would have an 
impact, a 

[[Page H 12015]]
negative impact, on NOAA. I have looked over the bill. I have worked 
with Dick Chrysler on the Commerce bill. That simply is not the case.
  Also, I hear people coming up, beating their chests in self-righteous 
indignation, saying how we are going to hurt the American worker and 
the American people because we have the courage to say no to the last 
great bastion of corporate welfare in America and that is the Commerce 
Department. The Democrats come to us and say, ``Yes, we want to be part 
of a balanced budget process, but we do not even have the courage, we 
do not have the courage to say no to runaway corporate welfare. We do 
not even have the courage to reinvent government.''
  We always hear this talk about reinventing Government. Chrysler has a 
good idea. Let us go ahead and consolidate and have all science-related 
agencies put together. We do not do away with it; we truly do reinvent 
it. We have the courage to make a difference.
  We are not trying to make political points. It makes sense. If you 
want to help the American worker, you do it by getting the Federal 
Government out of the way.
  We also have language in this bill that says we will balance the 
budget in 7 years. More importantly than that, we have language that 
may be added, and this is not terrorism. This makes good sense. We have 
language that is going to be added that will bring about true 
regulatory reform.
  You want to talk about money? You want to talk about real dollars? 
Regulatory burdens on American businesses, small businesses, cost over 
$500 billion a year, and we are doing something today to make a 
difference.
  I am very proud to be part of that process. I am proud to say no to 
the Commerce Department corporate welfare plan that Ron Brown has been 
supporting, I am proud to say yes to real regulatory reform, and I am 
proud to say for the first time in a generation we are going to balance 
this budget.
  Mr. GIBBONS. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from New York [Mr. Schumer].
  (Mr. SCHUMER asked and was given permission to revise and extend his 
remarks.)
  Mr. SCHUMER. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  Mr. Speaker, this debate is not about the Commerce Department. It is 
not about habeas corpus. It is not about any of the other dangles that 
have been suspended from the debt ceiling bill. This is about a game of 
chicken, a very dangerous game of chicken, where irresponsible people 
are saying, ``We are going to put what we want on here, and we hope 
that you will blink so this country doesn't default.''
  That is like playing will fire. The markets are waking up to this 
irresponsible game. Today, bonds are down half a point because of news 
that the other side is playing with the issue of default. Now, this not 
only affects the bond markets and the bondholders, it affects all 
Americans.
  I called up five leading economists. They estimated that permanently 
interest rates would go up a quarter to a half a percent if we 
defaulted. That says to the average homeowner on an ARM, you pay more 
than $600 a year. That says to the average student loan holder, you pay 
$850 more a year. That says to the U.S. Government, your debt is 
increased more than $90 billion a year.
  The budget game that Republicans are playing, this game of chicken, 
could well hurt seniors, students, and homeowners. Let us separate the 
budget debate from the debt ceiling debate and be responsible and stop 
playing games.
  Mr. ARCHER. Mr. Speaker, I yield 30 seconds to the gentleman from 
Florida [Mr. Mica].
  Mr. MICA. Mr. Speaker, I have to address the issue that my colleague 
from Florida brought up about the dismantling and how it would affect 
NOAA, the Weather Bureau. There are 36,000 employees in the Department 
of Commerce, of which 17,000 are in the Weather Service, 17,000 
employees. Get some handle on that. In addition, with FAA that has a 
Weather Bureau, we have DOD with a Weather Bureau. We are recommending 
some consolidation.
  This is not the day when you stick your finger out and get the 
weather with 17,000 people around the country. You get it from 
satellites and new technology and savings.
  Mr. GIBBONS. Mr. Speaker, I yield 2 minutes to the gentleman from 
Massachusetts [Mr. Neal].
  Mr. NEAL of Massachusetts. Mr. Speaker, the clock is ticking and we 
still have not increased the debt ceiling. It is time to act 
responsibly. We should not play chicken with our financial markets and 
more importantly the good name of our country. We do not want to 
remember November 15, 1995, or December 13, 1995, as the day the United 
States defaults. Instead we want to remember November 9, 1995, as the 
day the 104th Congress came together and acted for the best of the 
country.
  We can end this game of chicken today. We can end the threat of 
default. This is very simple. All we need to do is pass a clean short-
term extension of the debt ceiling. Better yet, we could take the most 
responsible choice and increase the debt limit to $5.5 trillion and 
this should keep the Government running well into 1997. Almost every 
House Republican has improved increasing the debt ceiling to $5.5 
trillion three times.
  We have no choice but to increase the debt limit. Even if this short 
term extension passes, we will still need a long-term increase. Mr. 
Speaker, why don't we enact a long-term increase now? What are you 
waiting for?
  If we fail to increase the debt limit, the Social Security trust 
funds will not be used for any purpose other than to assure the payment 
of benefits to Social Security recipients. Social Security has been 
protected and will continue to be protected. No additional legislation 
is needed to protect Social Security payments.
  The legislation before us adopts a payment priority system for 
benefits due to various Government trust funds. This type of scheme 
would not be made effective for many months. Any such prioritization 
scheme would cause other obligations to be defaulted.
  This type of scheme would put Medicare at risk. We would no longer 
have the funds to make Medicare payments.
  Repeatedly, we have heard the debt ceiling should not be increased 
until we have a balanced budget in place. We all agree deficit 
reduction is a number one priority. However, we differ on how to do it.
  Increasing the debt ceiling should not be held hostage to the budget. 
Raising the debt ceiling does not increase the deficit. Raising the 
debt ceiling allows the United States to pay obligations that are due. 
The debt ceiling is unrelated to the current budget debate. No good 
comes from failing to increase the debt ceiling.
  Let us get over the hurdle of the debt ceiling and pass a clean 
extension. Then, we can work on a budget to decrease the deficit.
  I just do not understand why we want to risk the good name of our 
country just so we can play a game of political blackmail. Congress 
should not resort to these types of tactics. This is serious business. 
We need to stop the rhetoric. We must act responsibly.
  Mr. ARCHER. Mr. Speaker, I yield 10 seconds to the gentleman from 
Florida [Mr. Stearns].
  Mr. STEARNS. Mr. Speaker, my good colleague from West Springfield 
should realize under the Reagan-Bush years, his party shut the 
Government down nine times, and his party had 17 continuing 
resolutions. So for him to go on and on like this is something new, it 
is not true.
  Mr. GIBBONS. Mr. Speaker, I yield 1 minute to the gentleman from 
California [Mr. Brown].
  (Mr. BROWN of California asked and was given permission to revise and 
extend his remarks.)
  Mr. BROWN of California. Mr. Speaker, I thank the gentleman from 
Florida for the time.
  Mr. Speaker, I am going to speak very briefly about the process 
involved here, at least as it involves the Walker amendment.
  Last night, the gentleman from Pennsylvania [Mr. Walker] appeared 
before the Committee on Rules late in the evening and offered his 
amendment in one version. A different version is printed in the Record 
today. I was not notified that he was proposing to do that, nor was any 
of the minority staff.
  The gentleman from Pennsylvania [Mr. Walker] represented at that 
time, and I think I have his statement before 

[[Page H 12016]]
me, that he asked on behalf of the House leadership for this amendment, 
which is a good-faith combination of the House and Senate bills. Based 
upon that, the chairman of the Committee on Rules this morning said, 
describing the amendment, a compromise between the House and Senate 
already passed regulatory reform.
  The fact is, the Senate has not passed any bills. They do not know 
about this compromise language. They have assured me they are not about 
to pass it. The 58 votes referred to was a vote on cloture, not on the 
bill.
  I would suggest that in addition to the slight involved to the 
minority, the procedural slight, that the statement made by Mr. Walker 
before the Committee on Rules would at the best be described as a lack 
of truth in advertising when he describes a procedural vote as implying 
that it actually passed the Senate by that number of votes and 
apparently convinced the chairman of the Committee on Rules that that 
was the case.
  Now, this is not the way to conduct business in this institution. We 
are not engaged in obstructionism, as Mr. Walker charged. We are asking 
for our rights as the minority, and I think we are entitled to receive 
those rights.
  Mr. ARCHER. Mr. Speaker, I reserve the balance of my time to close.
  Mr. GIBBONS. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman 
from Texas [Mr. Bentsen].
  Mr. BENTSEN. Mr. Speaker, let me say, to begin with, I cannot speak 
for the last 40 years. I was not around 40 years ago, and I cannot 
speak for the time that my ranking member has been in the House or even 
the time that my good colleague from Texas has been in the House, who I 
recall first got elected when I was in grade school.
  What I can speak to is experience that I brought to this House from 
the private sector. What we are doing here today is playing a dangerous 
game of blackmail for legislation, for votes which you do not have.
  We are endangering America's credibility in the financial markets 
which could render us as uncreditworthy as Orange County, CA.
  If we default, the markets will never forget. The markets will never 
forget, but the people of this country will pay forever and ever. If we 
were a city, a county or a State, this legislation would cause us to be 
downgraded, which would raise the cost to every citizen of those 
interests.
  This is bad legislation. It is a bad way to do business. It is bad 
practice. Put this other legislation aside. Bring it to the floor 
separately. If you do not have the votes, you cannot pass it. But do 
not blackmail America's credibility and its creditworthiness. That is 
bad business. It is bad for the country.
  Mr. GIBBONS. Mr. Speaker, I yield 1\1/2\ minute to the gentleman from 
Hawaii [Mr. Abercrombie].
  (Mr. ABERCROMBIE asked and was given permission to revise and extend 
his remarks.)

                              {time}  1515

  Mr. ABERCROMBIE. Mr. Speaker, I thank the gentleman from Florida [Mr. 
Gibbons] for yielding me time.
  Ladies and gentlemen, let us stop the crocodile tears over the Social 
Security trust fund. The fact of the matter is and everyover knows it 
here, there will not be a balanced budget in 2002. The balanced budget 
that is being put forward very simply steals $636 billion from the 
Social Security trust fund, a so-called surplus. If it really was a 
surplus then give it back.
  I understand that is the program of the majority party. Give back the 
$636 billion. If nothing went wrong, if nothing went wrong with the 
budget proposals coming from the Republican Party, in the year 2002 
they could announce that there was a budget surplus paid for by $636 
billion in Social Security funds.
  The young people of this country are saying they do not believe 
Social Security is going to be there when they need it, and it will not 
be. The day that this comes out, the Republicans are going to own $636 
billion, and now they cry crocodile tears in this debt extension about 
the trust fund and what the Democrats are doing.
  I defy anyone on the other side to deny my allegations. They should 
read their own budget bill, and they will see that they are going to 
take the $636 billion out of a so-called surplus.
  Finally, may I add, Mr. Speaker, for those who seem confused as to 
why the habeas corpus bill has been attached to this particular 
legislation, it is a message. I do not see how the gentleman from 
Michigan, [Mr. Conyers] and other people can fail to get it. General 
Powell is getting a message about his ability to broaden the text in 
the context of the Republican Party with the habeas corpus attachment 
to this bill. A message has been sent to the General.
  Mr. GIBBONS. Mr. Speaker, may I inquire how much time is remaining on 
this side?
  Mr. SPEAKER pro tempore (Mr. Hobson). The gentleman from Florida [Mr. 
Gibbons] has 1\1/2\ minutes remaining.
  Mr. GIBBONS. Mr. Speaker, I yield myself the remaining time.
  Mr. Speaker, we are here today because of mismanagement by the 
Speaker of the House of Representatives and by the Republican Party. We 
are conducting business that should have been conducted in a routine 
manner back in July, but today it is being used as an attempt to 
blackmail the President into signing something that he is not going to 
sign and it is being used as an attempt to get enough votes together, 
arm twist.
  We have heard the Republicans, Mr. Speaker, explain to their 
constituents why this is such a wonderful bill. Well, this is a debt 
ceiling bill and they want to disguise their vote so they put all this 
other material in here, about 400 pages of garbage, just so they can 
explain to their voters why they are going to vote for a $67 billion 
increase in the debt.
  Now, every one of them on that side has voted three times this year 
on the record to increase the debt to $5.5 trillion. Why do they need 
to get up and hoodwink their voters about why they are going to vote 
for this with all this other garbage? They know that that is never 
going to become law.
  Mr. Speaker, I yield back the balance of my time.
  Mr. ARCHER. Mr. Speaker, I yield myself the balance of my time.
  The SPEAKER pro tempore. The gentleman from Texas is recognized for 6 
minutes.
  Mr. ARCHER. Mr. Speaker, let us see if we can clear the air about 
this bill. Next week, on November 15, if there is not settlement on a 
new issue of Treasury securities, this country will not be able to pay 
its bills. If we do not pass this measure today, the Treasury will be 
put in a position to where it cannot pay our bills.
  If we pass this measure today, the Treasury will be able to orderly 
manage our debt and the payment of our bills until December 12. That is 
what the core of this legislation is all about. It is not about 
default. If it were about default, the Democrats in our committee on 
Tuesday evening put all of that issue before the American public. They 
attempted to scare the markets and to scare the people. And what 
happened yesterday? The stock market had a booming day, to set an all-
time new record, and bonds went up, not down, immediately on the heels 
of the reporting out of this bill by the Committee on Ways and Means.
  Again, they are here today, Mr. Speaker, to try to scare the markets, 
to try to scare the American people, but it will not work because it is 
not reality. What is reality, and what has brought down interests rates 
this year on home mortgages by almost 2 percent, the equivalent of over 
$2,000 savings for every hundred thousand dollar mortgage, has been 
because this new Congress has stated to the American people that we 
will get to a balanced budget.
  It is the balanced budget that drives interest rates. The credibility 
of that effort. And this bill is a downpayment on the effort to balance 
this budget. When we balance the budget, I say to my colleagues, then 
we will truly see another decline in the long-term interest rates and 
more affordable homes for Americans who want to have their dream 
realized, to get into their own home.
  That is what this debate is about. It is about a future for our 
children. My grandson, who was born last week, came into this world 
with a debt on his shoulders, a responsibility to pay $187,000 during 
his lifetime, just for the interest on the debt that has already been 
accumulated. Not for the increased debt that the Democrats and the 
President would like to put on his shoulders. We must stop that.

[[Page H 12017]]

  Yes, this bill draws the line on December 12 and says to the 
President and to the Congress that there will be no more manipulation, 
there will be no more game playing. We must go to the bargaining table. 
Both sides must feel the pressure to get to a balanced budget.
  My colleagues, I say to the President of the United States, come 
forward, be a leader, come and meet with the Congress and agree with us 
before December 12 that we will get to a balanced budget in 7 years by 
Congressional Budget Office numbers. And we say to the President again, 
he said CBO was the proper vehicle for us to settle our differences 
when he stood in this Chamber on February 17, 1993, and to a standing 
ovation said no longer would OMB numbers be the standard, but the 
realistic CBO numbers would be the standard. The President sent his 
first budget to this Congress based on CBO numbers. But they are not a 
rosy enough scenario for him today, and so he has put Rosy Scenario 
back on the stage and refused to respect the realistic CBO numbers.
  We are ready to negotiate with the President, and we must negotiate, 
because December 12 will be a drop-dead date. It is that important to 
force the leverage for a balanced budget. These are not easy decisions, 
and that is why it is essential that that tool be in this short-term 
extension.
  Now, let me also speak to the question of the trust funds that are 
vital to the retirement of so many Americans, Social Security 
recipients, Federal military retirees, Federal civilian retirees, 
railroad retirees. Their benefits need to be paid and their trust funds 
need to be protected. That is why we have written into this bill legal 
protections of those trust funds so that they cannot be disinvested or 
invaded.
  The administration says it has no intention of using the assets of 
Social Security funds to help the Government to operate during this 
debt limit interruption, yet Democrats in the Committee on Ways and 
Means offered amendment, after amendment, endorsed by the Treasury, to 
strike our trust fund protections. We need these protections to assure 
the Social Security recipients and Federal retirees that they will not 
be manipulated by this administration, which intends to do so when it 
vetoes this debt ceiling bill.
  Vote for this debt ceiling bill.
  Mr. ORTON. Mr. Speaker, I rise in opposition to the House version of 
a debt limit extension.
  There is not a more serious issue facing this country than a possible 
default on the full faith and credit of the U.S. Treasury. Our economy 
and the entire world economy relies on international confidence that we 
can conduct our fiscal affairs in a responsible manner. The long-term 
borrowing costs on Treasury securities are directly impacted by 
investors' confidence that principal and interest will always be paid 
on time. The stability of our financial markets, interest rates, 
international exchange rates, and stock markets are all connected to 
the stability of Treasury securities.
  I strongly support a clean extension of the debt limit, which will 
expire in the next week. During debate on this bill, I will support the 
motion to recommit, to be offered by Rep. L.F. Payne of Virginia. This 
recommit motion would amend the bill to remove extraneous provisions 
and simply extend the debt limit temporarily in a manner that 
accomplishes everything that the majority in the House claims it wants. 
This motion would extend the debt ceiling for a full 30 days after the 
Congress presents a balanced budget reconciliation bill to the 
President. This would provide a fair opportunity for a bipartisan 
budget agreement, without unnecessarily risking default on U.S. 
Treasury obligations.
  However, I must oppose this badly drafted debt limit extension being 
offered today, and I call on the House leadership to send back a clean 
bill.
  It is improper to politicize the credit of the United States by 
including unrelated provisions, which obviously are being attached 
because they cannot be passed separately through the normal legislative 
process. The debt extension is too important to condition its passage 
on support of extraneous measures.
  However, the most egregious provisions of this particular resolution 
are those which would tie the hands of the Secretary of the Treasury, 
and thereby increase the risk of default. If we were to pass this 
resolution, we would remove the ability of the President to use cash 
management techniques to avoid default in the event of short-term debt 
limit problems. These are the same cash management techniques that have 
been used by previous Presidents, including Ronald Reagan.
  If we pass this resolution, and Congress and the President are unable 
to reach accommodation next month, the removal of these management 
techniques would mean almost certain default of the United States of 
America. This would be a tragedy that would cost the taxpayers billions 
of dollars over the next decade, and would permanently damage the 
credit of the United States. We cannot take this risk. We should be 
doing everything possible to prevent default, not playing this 
political game of chicken which actually increases the likelihood of 
default.
  Finally, some of my colleagues have attempted to make the case that 
limitations on our debt limit are critically tied to deficit reduction 
and balancing our budget. This is simply not the case. The bipartisan 
Congressional Budget Office's ``Economic and Budget Outlook'' from 
August 1995, states that, ``Limiting the Treasury's borrowing authority 
is not a productive method of achieving deficit reduction. Significant 
deficit reduction can only be accomplished by legislative decisions 
that reduce outlays or increase revenues.''
  I agree with CBO. That is why I have consistently supported and voted 
for a constitutional amendment to balance the budget. That is why I 
recently offered a comprehensive budget reconciliation alternative on 
the House floor which would have made real spending cuts sufficient to 
balance the budget by 2002.
  We should not play partisan games with an explosive issue like the 
extension of the debt limit. We should not pass a resolution which 
makes it more likely that we will default on our debt in early 
December. Instead, we should focus our legislative energies on working 
together to pass a bipartisan budget reconciliation bill that reaches 
balance in 7 years.
  I urge my colleagues to vote down this convoluted resolution, and 
immediately bring back a clean debt limit extension which the President 
stands ready to sign. I urge my colleagues to put the interests of our 
country ahead of partisan consideration.
  Ms. BROWN of Florida. Mr. Speaker, I rise in opposition to H.R. 2586 
because it includes legislation to dismantle the Commerce Department. 
This bill is extremely shortsighted. Frankly, I'm surprised that my 
colleagues are so willing to throw the baby out with the bath water.
  Commerce has a proven track record of providing the maximum bang for 
the buck. Although Commerce has the smallest budget of any Cabinet 
department, its services have contributed enormously to our Nation's 
economic well-being.
  For example, for an investment of $250 million in trade promotion 
programs, Commerce advocated successfully in 1994 for foreign contracts 
with U.S. export content of almost $20 billion. In addition, our 
economy is getting a return of 8 to 1 from Commerce's manufacturing 
extension centers. Similar examples can be found in other programs, 
from facilitating exports by reducing export control burdens, to 
spurring investments in telecommunications infrastructure and economic 
development through matching grants.
  This proposal would also eliminate Commerce's minority business 
development agency [MBDA], the only Federal agency created specifically 
to foster the establishment and growth of minority owned businesses in 
America. MBDA provides funding for approximately 100 minority business 
development centers [MBDC's] located throughout the country in areas 
with the largest minority populations including Jacksonville and 
Orlando.
  The centers provide minority entrepreneurs with management and 
technical assistance services to start, expand, or manage a business. 
They are staffed by business specialists who have the knowledge and 
practical experience needed to run successful, profitable business. 
Minority business development centers are making a difference, they 
should not be eliminated.
  While the Republicans propose to terminate a few agencies that are 
making a difference, the bulk of Commerce's programs would continue but 
be dispersed to the President, other agencies, and be re-created as 
Commissions at considerable cost to the taxpayer. Rather than diluted 
through dispersal, these functions important for American businesses 
should remain unified at the Commerce Department.
  We should not destroy the Commerce Department and all the good that 
it does for our businesses. That's why the Commerce Department is 
supported by the U.S. Chamber of Commerce. Let's use common sense. Vote 
against this antibusiness bill.
  Mr. DeLAY. Mr. Speaker, I rise in strong support of the Walker 
amendment,
  Earlier this year, the House passed a number of bills which made much 
needed fundamental changes to the way the Federal Government 
promulgates regulations. We passed unfunded mandates reform, the 
Paperwork Reduction Act, and an improved Reg Flex Act so that agencies 
can be taken to court if they don't take into account the impact of 
regulations on small businesses, among other reforms.

[[Page H 12018]]

  All of these bills passed with strong bipartisan majorities, and two 
of these--unfunded mandates and paperwork reduction--have even been 
signed into law.
  The biggest and most fundamental reform the House passed, however, is 
a requirement that agencies conduct risk assessment and cost-benefit 
analysis based on sound science prior to promulgating regulations.
  Too often regulatory decisions are made without any consideration for 
the impact they will have or even for whether they will address the 
problem effectively. The Federal Government must set priorities on how 
to spend its limited resources. Risk assessment and cost-benefit 
analysis will both help us focus on those areas that are the greatest 
threat to the public, and provide the data needed to make those tough 
budgetary choices.
  Unfortunately, the other body has yet to act on these key provisions. 
That is why we are including this package in this bill--the provisions 
that make up this package are widely supported by a majority of both 
Houses, and signify a return to common sense, sound science, regulatory 
flexibility, and a more effective regulatory system.
  Because this regulatory reform package restores balance to our 
Federal regulatory system, it is being considered a key vote by a large 
number of organizations. They include: National Federation of 
Independent Business; U.S. Chamber of Commerce; National Restaurant 
Association; Americans for Tax Reform; National Association of Home 
Builders; and National American Wholesale Grocers Association.
  The Walker amendment is also strongly supported by Project Relief, 
the Alliance for Reasonable Regulation Citizens for a Sound Economy, 
the American Farm Bureau Federation, the Grocery Manufacturers of 
America, and the National Mining Association, among many others. These 
groups represent tens of thousands of businesses and individuals that 
have become involved at the grassroots level to achieve regulatory 
reform.
  Regulatory reform will improve the average American's life in 
measurable ways--greater consumer choice, lower prices of goods and 
services, additional job opportunities, along with better economic 
growth.
  I urge my colleagues to help relieve some of the burden placed on the 
American family by the Federal Government. Support the Walker 
amendment.
  Mr. POMEROY. Mr. Speaker, I rise today to oppose the way this bill is 
being handled. This is truly a perversion of the process. Rather than 
bring to the floor a clean debt limit extension, the majority is 
playing games with the full faith and credit of the U.S. Government. If 
we don't act quickly, the United States is in danger of default.
  Legislation to extend the debt limit should not be a Christmas tree 
for items that can't make it through the normal legislative process. 
While I strongly believe the American people could use a good dose of 
regulatory relief, and my votes on that issue have shown that I support 
providing that, this is neither the time nor the place for the Walker 
amendment. Further, the Walker amendment was being drafted this morning 
and I have not had the opportunity to review the text. While I may be 
in conceptual agreement with some of the provisions, this is not an 
appropriate vehicle.
  Passage of a clean debt limit extension bill is critical to the 
American people. It should not be weighed down with extraneous 
provisions, no matter what the subject. Speaker Gingrich may think he's 
playing this game with President Clinton, but he is really playing it 
with ordinary Americans. Working Americans are the one who will suffer 
if the Nation defaults on its debt.
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 258, the amendment recommended by the 
Committee on Ways and Means printed in the bill and the amendments 
specified in House Report 104-328 are adopted.
  The text of H.R. 2586, as amended, is as follows:

                               H.R. 2586

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

     SECTION 1. TEMPORARY INCREASE IN PUBLIC DEBT LIMIT.

       Subsection (b) of section 3101 of title 31, United States 
     Code, is amended by adding at the end the following new 
     sentence: ``During the period after the date of the enactment 
     of this sentence, the preceding sentence shall be applied by 
     substituting for the dollar amount contained therein--
       ``(1) `$4,967,000,000,000' for the portion of such period 
     before December 13, 1995, and
       ``(2) `$4,800,000,000,000' after December 12, 1995.''

     SEC. 2. APPLICABILITY OF PUBLIC DEBT LIMIT TO FEDERAL TRUST 
                   FUNDS AND OTHER FEDERAL ACCOUNTS.

       (a) Protection of Federal Funds.--Notwithstanding any other 
     provision of law--
       (1) no officer or employee of the United States may--
       (A) delay the deposit of any amount into (or delay the 
     credit of any amount to) any Federal fund or otherwise vary 
     from the normal terms, procedures, or timing for making such 
     deposits or credits, or
       (B) refrain from the investment in public debt obligations 
     of amounts in any Federal fund,

     if a purpose of such action or inaction is to not increase 
     the amount of outstanding public debt obligations, and
       (2) no officer or employee of the United States may 
     disinvest amounts in any Federal fund which are invested in 
     public debt obligations if a purpose of the disinvestment is 
     to reduce the amount of outstanding public debt obligations.
       (b) Protection of Benefits and Expenditures for 
     Administrative Expenses.--
       (1) In general.--Notwithstanding subsection (a), during any 
     period for which cash benefits or administrative expenses 
     would not otherwise be payable from a covered benefits fund 
     by reason of an inability to issue further public debt 
     obligations because of the applicable public debt limit, 
     public debt obligations held by such covered benefits fund 
     shall be sold or redeemed only for the purpose of making 
     payment of such benefits or administrative expenses and only 
     to the extent cash assets of the covered benefits fund are 
     not available from month to month for making payment of such 
     benefits or administrative expenses.
       (2) Issuance of corresponding debt.--For purposes of 
     undertaking the sale or redemption of public debt obligations 
     held by a covered benefits fund pursuant to paragraph (1), 
     the Secretary of the Treasury may issue corresponding public 
     debt obligations to the public, in order to obtain the cash 
     necessary for payment of benefits or administrative expenses 
     from such covered benefits fund, notwithstanding the 
     public debt limit.
       (3) Advance notice of sale or redemption.--Not less than 3 
     days prior to the date on which, by reason of the public debt 
     limit, the Secretary of the Treasury expects to undertake a 
     sale or redemption authorized under paragraph (1), the 
     Secretary of the Treasury shall report to each House of the 
     Congress and to the Comptroller General of the United States 
     regarding the expected sale or redemption. Upon receipt of 
     such report, the Comptroller General shall review the extent 
     of compliance with subsection (a) and paragraphs (1) and (2) 
     of this subsection and shall issue such findings and 
     recommendations to each House of the Congress as the 
     Comptroller General considers necessary and appropriate.
       (c) Public Debt Obligation.--For purposes of this section, 
     the term ``public debt obligation'' means any obligation 
     subject to the public debt limit established under section 
     3101 of title 31, United States Code.
       (d) Federal Fund.--For purposes of this section, the term 
     ``Federal fund'' means any Federal trust fund or Government 
     account established pursuant to Federal law to which the 
     Secretary of the Treasury has issued or is expressly 
     authorized by law directly to issue obligations under chapter 
     31 of title 31, United States Code, in respect of public 
     money, money otherwise required to be deposited in the 
     Treasury, or amounts appropriated.
       (e) Covered Benefits Fund.--For purposes of subsection (b), 
     the term ``covered benefits fund'' means any Federal fund 
     from which cash benefits are payable by law in the form of 
     retirement benefits, separation payments, life or disability 
     insurance benefits, or dependent's or survivor's benefits, 
     including (but not limited to) the following:
       (1) the Federal Old-Age and Survivors Insurance Trust Fund;
       (2) the Federal Disability Insurance Trust Fund;
       (3) the Civil Service Retirement and Disability Fund;
       (4) the Government Securities Investment Fund;
       (5) the Department of Defense Military Retirement Fund;
       (6) the Unemployment Trust Fund;
       (7) each of the railroad retirement funds and accounts;
       (8) the Department of Defense Education Benefits Fund and 
     the Post-Vietnam Era Veterans Education Fund; and
       (9) the Black Lung Disability Trust Fund.

     SEC. 3. CONFORMING AMENDMENTS.

       Subsections (j), (k), and (l) of section 8348 of title 5, 
     United States Code, and subsections (g) and (h) of section 
     8438 of such title are hereby repealed.

     SEC. 4. COMMITMENT TO A SEVEN-YEAR BALANCED BUDGET.

       (a) With the enactment of this Act the President and the 
     Congress commit to enacting legislation in calendar year 1995 
     to achieve a balanced budget, as scored by the non-partisan 
     Congressional Budget Office, not later than the fiscal year 
     2002.
       (b) The Congress affirms that it will not enact legislation 
     providing for a further increase in the permanent statutory 
     limit on the public debt unless the President signs into law 
     the balanced budget legislation referred to in subsection 
     (a).

     SEC. 5. MEDICARE COVERAGE OF CERTAIN ANTI-CANCER DRUG 
                   TREATMENTS.

       (a) Coverage of Certain Self-Administered Anticancer 
     Drugs.--Section 1861(s)(2)(Q) of the Social Security Act (42 
     U.S.C. 1395x(s)(2)(Q)) is amended--
       (1) by striking ``(Q)'' and inserting ``(Q)(i)''; and
       (2) by striking the semicolon at the end and inserting ``, 
     and''; and

[[Page H 12019]]

       (3) by adding at the end the following:
       ``(ii) an oral drug (which is approved by the Federal Food 
     and Drug Administration) prescribed for use as an anticancer 
     nonsteroidal antiestrogen for the treatment of breast cancer 
     or nonsteroidal antiandrogen agent for the treatment of 
     prostate cancer;''.
       (b) Uniform Coverage of Anticancer Drugs in All Settings.--
     Section 1861(t)(2)(A) of such Act (42 U.S.C. 1395x(t)(2)(A)) 
     is amended by adding ``(including a nonsteroidal antiestrogen 
     or nonsteroidal antiandrogen regimen)'' after ``regimen''.
       (c) Conforming Amendment.--Section 1834(j)(5)(F)(iv) of 
     such Act (42 U.S.C. 1395m(j)(5)(F)(iv)) is amended by 
     striking ``prescribed for use'' and all that follows through 
     ``1861(s)(2)(Q))'' and inserting ``described in section 
     1861(s)(2)(Q))''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to drugs furnished on or after the date of the 
     enactment of this section.

                     TITLE I--HABEAS CORPUS REFORM

     SEC. 101. FILING DEADLINES.

       Section 2244 of title 28, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d)(1) A 1-year period of limitation shall apply to an 
     application for a writ of habeas corpus by a person in 
     custody pursuant to the judgment of a State court. The 
     limitation period shall run from the latest of--
       ``(A) the date on which the judgment became final by the 
     conclusion of direct review or the expiration of the time for 
     seeking such review;
       ``(B) the date on which the impediment to filing an 
     application created by State action in violation of the 
     Constitution or laws of the United States is removed, if the 
     applicant was prevented from filing by such State action;
       ``(C) the date on which the constitutional right asserted 
     was initially recognized by the Supreme Court, if the right 
     has been newly recognized by the Supreme Court and made 
     retroactively applicable to cases on collateral review; or
       ``(D) the date on which the factual predicate of the claim 
     or claims presented could have been discovered through the 
     exercise of due diligence.
       ``(2) The time during which a properly filed application 
     for State post-conviction or other collateral review with 
     respect to the pertinent judgment or claim shall not be 
     counted toward any period of limitation under this 
     subsection.''.

     SEC. 102. APPEAL.

       Section 2253 of title 28, United States Code, is amended to 
     read as follows:

     ``Sec. 2253. Appeal

       ``(a) In a habeas corpus proceeding or a proceeding under 
     section 2255 before a district judge, the final order shall 
     be subject to review, on appeal, by the court of appeals for 
     the circuit in which the proceeding is held.
       ``(b) There shall be no right of appeal from a final order 
     in a proceeding to test the validity of a warrant to remove 
     to another district or place for commitment or trial a person 
     charged with a criminal offense against the United States, or 
     to test the validity of such person's detention pending 
     removal proceedings.
       ``(c)(1) Unless a circuit justice or judge issues a 
     certificate of appealability, an appeal may not be taken to 
     the court of appeals from--
       ``(A) the final order in a habeas corpus proceeding in 
     which the detention complained of arises out of process 
     issued by a State court; or
       ``(B) the final order in a proceeding under section 2255.
       ``(2) A certificate of appealability may issue under 
     paragraph (1) only if the applicant has made a substantial 
     showing of the denial of a constitutional right.
       ``(3) The certificate of appealability under paragraph (1) 
     shall indicate which specific issue or issues satisfy the 
     showing required by paragraph (2).''.

     SEC. 103. AMENDMENT OF FEDERAL RULES OF APPELLATE PROCEDURE.

       Rule 22 of the Federal Rules of Appellate Procedure is 
     amended to read as follows:

     ``Rule 22. Habeas corpus and section 2255 proceedings

       ``(a) Application for the Original Writ.--An application 
     for a writ of habeas corpus shall be made to the appropriate 
     district court. If application is made to a circuit judge, 
     the application shall be transferred to the appropriate 
     district court. If an application is made to or transferred 
     to the district court and denied, renewal of the application 
     before a circuit judge shall not be permitted. The applicant 
     may, pursuant to section 2253 of title 28, United States 
     Code, appeal to the appropriate court of appeals from the 
     order of the district court denying the writ.
       ``(b) Certificate of Appealability.--In a habeas corpus 
     proceeding in which the detention complained of arises out of 
     process issued by a State court, an appeal by the applicant 
     for the writ may not proceed unless a district or a circuit 
     judge issues a certificate of appealability pursuant to 
     section 2253(c) of title 28, United States Code. If an appeal 
     is taken by the applicant, the district judge who rendered 
     the judgment shall either issue a certificate of 
     appealability or state the reasons why such a certificate 
     should not issue. The certificate or the statement shall be 
     forwarded to the court of appeals with the notice of appeal 
     and the file of the proceedings in the district court. If the 
     district judge has denied the certificate, the applicant for 
     the writ may then request issuance of the certificate by a 
     circuit judge. If such a request is addressed to the court of 
     appeals, it shall be deemed addressed to the judges thereof 
     and shall be considered by a circuit judge or judges as the 
     court deems appropriate. If no express request for a 
     certificate is filed, the notice of appeal shall be deemed to 
     constitute a request addressed to the judges of the court of 
     appeals. If an appeal is taken by a State or its 
     representative, a certificate of appealability is not 
     required.''.

     SEC. 104. SECTION 2254 AMENDMENTS.

       Section 2254 of title 28, United States Code, is amended--
       (1) by amending subsection (b) to read as follows:
       ``(b)(1) An application for a writ of habeas corpus on 
     behalf of a person in custody pursuant to the judgment of a 
     State court shall not be granted unless it appears that--
       ``(A) the applicant has exhausted the remedies available in 
     the courts of the State; or
       ``(B)(i) there is an absence of available State corrective 
     process; or
       ``(ii) circumstances exist that render such process 
     ineffective to protect the rights of the applicant.
       ``(2) An application for a writ of habeas corpus may be 
     denied on the merits, notwithstanding the failure of the 
     applicant to exhaust the remedies available in the courts of 
     the State.
       ``(3) A State shall not be deemed to have waived the 
     exhaustion requirement or be estopped from reliance upon the 
     requirement unless the State, through counsel, expressly 
     waives the requirement.'';
       (2) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (3) by inserting after subsection (c) the following new 
     subsection:
       ``(d) An application for a writ of habeas corpus on behalf 
     of a person in custody pursuant to the judgment of a State 
     court shall not be granted with respect to any claim that was 
     adjudicated on the merits in State court proceedings unless 
     the adjudication of the claim--
       ``(1) resulted in a decision that was contrary to, or 
     involved an unreasonable application of, clearly established 
     Federal law, as determined by the Supreme Court of the United 
     States; or
       ``(2) resulted in a decision that was based on an 
     unreasonable determination of the facts in light of the 
     evidence presented in the State court proceeding.'';
       (4) by amending subsection (e), as redesignated by 
     paragraph (2), to read as follows:
       ``(e)(1) In a proceeding instituted by an application for a 
     writ of habeas corpus by a person in custody pursuant to the 
     judgment of a State court, a determination of a factual issue 
     made by a State court shall be presumed to be correct. The 
     applicant shall have the burden of rebutting the presumption 
     of correctness by clear and convincing evidence.
       ``(2) If the applicant has failed to develop the factual 
     basis of a claim in State court proceedings, the court shall 
     not hold an evidentiary hearing on the claim unless the 
     applicant shows that--
       ``(A) the claim relies on--
       ``(i) a new rule of constitutional law, made retroactive to 
     cases on collateral review by the Supreme Court, that was 
     previously unavailable; or
       ``(ii) a factual predicate that could not have been 
     previously discovered through the exercise of due diligence; 
     and
       ``(B) the facts underlying the claim would be sufficient to 
     establish by clear and convincing evidence that but for 
     constitutional error, no reasonable factfinder would have 
     found the applicant guilty of the underlying offense.''; and
       (5) by adding at the end the following new subsections:
       ``(h) Except as provided in title 21, United States Code, 
     section 848, in all proceedings brought under this section, 
     and any subsequent proceedings on review, the court may 
     appoint counsel for an applicant who is or becomes 
     financially unable to afford counsel, except as provided by a 
     rule promulgated by the Supreme Court pursuant to statutory 
     authority. Appointment of counsel under this section shall be 
     governed by section 3006A of title 18.
       ``(i) The ineffectiveness or incompetence of counsel during 
     Federal or State collateral post-conviction proceedings shall 
     not be a ground for relief in a proceeding arising under 
     section 2254.''.

     SEC. 105. SECTION 2255 AMENDMENTS.

       Section 2255 of title 28, United States Code, is amended--
       (1) by striking the second and fifth undesignated 
     paragraphs; and
       (2) by adding at the end the following new undesignated 
     paragraphs:
       ``A 1-year period of limitation shall apply to a motion 
     under this section. The limitation period shall run from the 
     latest of--
       ``(1) the date on which the judgment of conviction becomes 
     final;
       ``(2) the date on which the impediment to making a motion 
     created by governmental action in violation of the 
     Constitution or laws of the United States is removed, if the 
     movant was prevented from making a motion by such 
     governmental action;
       ``(3) the date on which the right asserted was initially 
     recognized by the Supreme Court, if that right has been newly 
     recognized by the Supreme Court and made retroactively 
     applicable to cases on collateral review; or

[[Page H 12020]]

       ``(4) the date on which the facts supporting the claim or 
     claims presented could have been discovered through the 
     exercise of due diligence.
       ``Except as provided in title 21, United States Code, 
     section 848, in all proceedings brought under this section, 
     and any subsequent proceedings on review, the court may 
     appoint counsel for a movant who is or becomes financially 
     unable to afford counsel shall be in the discretion of the 
     court, except as provided by a rule promulgated by the 
     Supreme Court pursuant to statutory authority. Appointment of 
     counsel under this section shall be governed by section 3006A 
     of title 18.
       ``A second or successive motion must be certified as 
     provided in section 2244 by a panel of the appropriate court 
     of appeals to contain--
       ``(1) newly discovered evidence that, if proven and viewed 
     in light of the evidence as a whole, would be sufficient to 
     establish by clear and convincing evidence that no reasonable 
     factfinder would have found the movant guilty of the offense; 
     or
       ``(2) a new rule of constitutional law, made retroactive to 
     cases on collateral review by the Supreme Court, that was 
     previously unavailable.''.

     SEC. 106. LIMITS ON SECOND OR SUCCESSIVE APPLICATIONS.

       (a) Conforming Amendment to Section 2244(a).--Section 
     2244(a) of title 28, United States Code, is amended by 
     striking ``and the petition'' and all that follows through 
     ``by such inquiry.'' and inserting ``, except as provided in 
     section 2255.''.
       (b) Limits on Second or Successive Applications.--Section 
     2244(b) of title 28, United States Code, is amended to read 
     as follows:
       ``(b)(1) A claim presented in a second or successive habeas 
     corpus application under section 2254 that was presented in a 
     prior application shall be dismissed.
       ``(2) A claim presented in a second or successive habeas 
     corpus application under section 2254 that was not presented 
     in a prior application shall be dismissed unless--
       ``(A) the applicant shows that the claim relies on a new 
     rule of constitutional law, made retroactive to cases on 
     collateral review by the Supreme Court, that was previously 
     unavailable; or
       ``(B)(i) the factual predicate for the claim could not have 
     been discovered previously through the exercise of due 
     diligence; and
       ``(ii) the facts underlying the claim, if proven and viewed 
     in light of the evidence as a whole, would be sufficient to 
     establish by clear and convincing evidence that, but for 
     constitutional error, no reasonable factfinder would have 
     found the applicant guilty of the underlying offense.
       ``(3)(A) Before a second or successive application 
     permitted by this section is filed in the district court, the 
     applicant shall move in the appropriate court of appeals for 
     an order authorizing the district court to consider the 
     application.
       ``(B) A motion in the court of appeals for an order 
     authorizing the district court to consider a second or 
     successive application shall be determined by a three-judge 
     panel of the court of appeals.
       ``(C) The court of appeals may authorize the filing of a 
     second or successive application only if it determines that 
     the application makes a prima facie showing that the 
     application satisfies the requirements of this subsection.
       ``(D) The court of appeals shall grant or deny the 
     authorization to file a second or successive application not 
     later than 30 days after the filing of the motion.
       ``(E) The grant or denial of an authorization by a court of 
     appeals to file a second or successive application shall not 
     be appealable and shall not be the subject of a petition for 
     rehearing or for a writ of certiorari.
       ``(4) A district court shall dismiss any claim presented in 
     a second or successive application that the court of appeals 
     has authorized to be filed unless the applicant shows that 
     the claim satisfies the requirements of this section.''.

     SEC. 107. DEATH PENALTY LITIGATION PROCEDURES.

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

    ``CHAPTER 154--SPECIAL HABEAS CORPUS PROCEDURES IN CAPITAL CASES

``Sec.
``2261. Prisoners in State custody subject to capital sentence; 
              appointment of counsel; requirement of rule of court or 
              statute; procedures for appointment.
``2262. Mandatory stay of execution; duration; limits on stays of 
              execution; successive petitions.
``2263. Filing of habeas corpus application; time requirements; tolling 
              rules.
``2264. Scope of Federal review; district court adjudications.
``2265. Application to State unitary review procedure.
``2266. Limitation periods for determining applications and motions.

     ``Sec. 2261. Prisoners in State custody subject to capital 
       sentence; appointment of counsel; requirement of rule of 
       court or statute; procedures for appointment

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

     ``Sec. 2262. Mandatory stay of execution; duration; limits on 
       stays of execution; successive petitions

       ``(a) Upon the entry in the appropriate State court of 
     record of an order under section 2261(c), a warrant or order 
     setting an execution date for a State prisoner shall be 
     stayed upon application to any court that would have 
     jurisdiction over any proceedings filed under section 2254. 
     The application shall recite that the State has invoked the 
     post-conviction review procedures of this chapter and that 
     the scheduled execution is subject to stay.
       ``(b) A stay of execution granted pursuant to subsection 
     (a) shall expire if--
       ``(1) a State prisoner fails to file a habeas corpus 
     application under section 2254 within the time required in 
     section 2263;
       ``(2) before a court of competent jurisdiction, in the 
     presence of counsel, unless the prisoner has competently and 
     knowingly waived such counsel, and after having been advised 
     of the consequences, a State prisoner under capital sentence 
     waives the right to pursue habeas corpus review under section 
     2254; or
       ``(3) a State prisoner files a habeas corpus petition under 
     section 2254 within the time required by section 2263 and 
     fails to make a substantial showing of the denial of a 
     Federal right or is denied relief in the district court or at 
     any subsequent stage of review.
       ``(c) If one of the conditions in subsection (b) has 
     occurred, no Federal court thereafter shall have the 
     authority to enter a stay of execution in the case, unless 
     the court of appeals approves the filing of a second or 
     successive application under section 2244(b).

     ``Sec. 2263. Filing of habeas corpus application; time 
       requirements; tolling rules

       ``(a) Any application under this chapter for habeas corpus 
     relief under section 2254 must be filed in the appropriate 
     district court not later than 180 days after final State 
     court affirmance of the conviction and sentence on direct 
     review or the expiration of the time for seeking such review.
       ``(b) The time requirements established by subsection (a) 
     shall be tolled--
       ``(1) from the date that a petition for certiorari is filed 
     in the Supreme Court until the date of final disposition of 
     the petition if a State prisoner files the petition to secure 
     review by the Supreme Court of the affirmance of a capital 
     sentence on direct review by the court of last resort of the 
     State or other final State court decision on direct review;
       ``(2) from the date on which the first petition for post-
     conviction review or other collateral relief is filed until 
     the final State court disposition of such petition; and
       ``(3) during an additional period not to exceed 30 days, 
     if--
       ``(A) a motion for an extension of time is filed in the 
     Federal district court that would have jurisdiction over the 
     case upon the filing of a habeas corpus application under 
     section 2254; and
       ``(B) a showing of good cause is made for the failure to 
     file the habeas corpus application within the time period 
     established by this section.

     ``Sec. 2264. Scope of Federal review; district court 
       adjudications

       ``(a) Whenever a State prisoner under capital sentence 
     files a petition for habeas corpus relief to which this 
     chapter applies, the 

[[Page H 12021]]
     district court shall only consider a claim or claims that have been 
     raised and decided on the merits in the State courts, unless 
     the failure to raise the claim properly is--
       ``(1) the result of State action in violation of the 
     Constitution or laws of the United States;
       ``(2) the result of the Supreme Court recognition of a new 
     Federal right that is made retroactively applicable; or
       ``(3) based on a factual predicate that could not have been 
     discovered through the exercise of due diligence in time to 
     present the claim for State or Federal post-conviction 
     review.
       ``(b) Following review subject to subsections (a), (d), and 
     (e) of section 2254, the court shall rule on the claims 
     properly before it.

     ``Sec. 2265. Application to State unitary review procedure

       ``(a) For purposes of this section, a `unitary review' 
     procedure means a State procedure that authorizes a person 
     under sentence of death to raise, in the course of direct 
     review of the judgment, such claims as could be raised on 
     collateral attack. This chapter shall apply, as provided in 
     this section, in relation to a State unitary review procedure 
     if the State establishes by rule of its court of last resort 
     or by statute a mechanism for the appointment, compensation, 
     and payment of reasonable litigation expenses of competent 
     counsel in the unitary review proceedings, including expenses 
     relating to the litigation of collateral claims in the 
     proceedings. The rule of court or statute must provide 
     standards of competency for the appointment of such counsel.
       ``(b) To qualify under this section, a unitary review 
     procedure must include an offer of counsel following trial 
     for the purpose of representation on unitary review, and 
     entry of an order, as provided in section 2261(c), concerning 
     appointment of counsel or waiver or denial of appointment of 
     counsel for that purpose. No counsel appointed to represent 
     the prisoner in the unitary review proceedings shall have 
     previously represented the prisoner at trial in the case for 
     which the appointment is made unless the prisoner and counsel 
     expressly request continued representation.
       ``(c) Sections 2262, 2263, 2264, and 2266 shall apply in 
     relation to cases involving a sentence of death from any 
     State having a unitary review procedure that qualifies under 
     this section. References to State `post-conviction review' 
     and `direct review' in such sections shall be understood as 
     referring to unitary review under the State procedure. The 
     reference in section 2262(a) to `an order under section 
     2261(c)' shall be understood as referring to the post-trial 
     order under subsection (b) concerning representation in the 
     unitary review proceedings, but if a transcript of the trial 
     proceedings is unavailable at the time of the filing of such 
     an order in the appropriate State court, then the start of 
     the 180-day limitation period under section 2263 shall be 
     deferred until a transcript is made available to the prisoner 
     or counsel of the prisoner.

     ``Sec. 2266. Limitation periods for determining applications 
       and motions

       ``(a) The adjudication of any application under section 
     2254 that is subject to this chapter, and the adjudication of 
     any motion under section 2255 by a person under sentence of 
     death, shall be given priority by the district court and by 
     the court of appeals over all noncapital matters.
       ``(b)(1)(A) A district court shall render a final 
     determination and enter a final judgment on any application 
     for a writ of habeas corpus brought under this chapter in a 
     capital case not later than 180 days after the date on which 
     the application is filed.
       ``(B) A district court shall afford the parties at least 
     120 days in which to complete all actions, including the 
     preparation of all pleadings and briefs, and if necessary, a 
     hearing, prior to the submission of the case for decision.
       ``(C)(i) A district court may delay for not more than one 
     additional 30-day period beyond the period specified in 
     subparagraph (A), the rendering of a determination of an 
     application for a writ of habeas corpus if the court issues a 
     written order making a finding, and stating the reasons for 
     the finding, that the ends of justice that would be served by 
     allowing the delay outweigh the best interests of the public 
     and the applicant in a speedy disposition of the application.
       ``(ii) The factors, among others, that a court shall 
     consider in determining whether a delay in the disposition of 
     an application is warranted are as follows:
       ``(I) Whether the failure to allow the delay would be 
     likely to result in a miscarriage of justice.
       ``(II) Whether the case is so unusual or so complex, due to 
     the number of defendants, the nature of the prosecution, or 
     the existence of novel questions of fact or law, that it is 
     unreasonable to expect adequate briefing within the time 
     limitations established by subparagraph (A).
       ``(III) Whether the failure to allow a delay in a case, 
     that, taken as a whole, is not so unusual or so complex as 
     described in subclause (II), but would otherwise deny the 
     applicant reasonable time to obtain counsel, would 
     unreasonably deny the applicant or the government continuity 
     of counsel, or would deny counsel for the applicant or the 
     government the reasonable time necessary for effective 
     preparation, taking into account the exercise of due 
     diligence.
       ``(iii) No delay in disposition shall be permissible 
     because of general congestion of the court's calendar.
       ``(iv) The court shall transmit a copy of any order issued 
     under clause (i) to the Director of the Administrative Office 
     of the United States Courts for inclusion in the report under 
     paragraph (5).
       ``(2) The time limitations under paragraph (1) shall apply 
     to--
       ``(A) an initial application for a writ of habeas corpus;
       ``(B) any second or successive application for a writ of 
     habeas corpus; and
       ``(C) any redetermination of an application for a writ of 
     habeas corpus following a remand by the court of appeals or 
     the Supreme Court for further proceedings, in which case the 
     limitation period shall run from the date the remand is 
     ordered.
       ``(3)(A) The time limitations under this section shall not 
     be construed to entitle an applicant to a stay of execution, 
     to which the applicant would otherwise not be entitled, for 
     the purpose of litigating any application or appeal.
       ``(B) No amendment to an application for a writ of habeas 
     corpus under this chapter shall be permitted after the filing 
     of the answer to the application, except on the grounds 
     specified in section 2244(b).
       ``(4)(A) The failure of a court to meet or comply with a 
     time limitation under this section shall not be a ground for 
     granting relief from a judgment of conviction or sentence.
       ``(B) The State may enforce a time limitation under this 
     section by petitioning for a writ of mandamus to the court of 
     appeals. The court of appeals shall act on the petition for a 
     writ or mandamus not later than 30 days after the filing of 
     the petition.
       ``(5)(A) The Administrative Office of United States Courts 
     shall submit to Congress an annual report on the compliance 
     by the district courts with the time limitations under this 
     section.
       ``(B) The report described in subparagraph (A) shall 
     include copies of the orders submitted by the district courts 
     under paragraph (1)(B)(iv).
       ``(c)(1)(A) A court of appeals shall hear and render a 
     final determination of any appeal of an order granting or 
     denying, in whole or in part, an application brought under 
     this chapter in a capital case not later than 120 days after 
     the date on which the reply brief is filed, or if no reply 
     brief is filed, not later than 120 days after the date on 
     which the answering brief is filed.
       ``(B)(i) A court of appeals shall decide whether to grant a 
     petition for rehearing or other request for rehearing en banc 
     not later than 30 days after the date on which the petition 
     for rehearing is filed unless a responsive pleading is 
     required, in which case the court shall decide whether to 
     grant the petition not later than 30 days after the date on 
     which the responsive pleading is filed.
       ``(ii) If a petition for rehearing or rehearing en banc is 
     granted, the court of appeals shall hear and render a final 
     determination of the appeal not later than 120 days after the 
     date on which the order granting rehearing or rehearing en 
     banc is entered.
       ``(2) The time limitations under paragraph (1) shall apply 
     to--
       ``(A) an initial application for a writ of habeas corpus;
       ``(B) any second or successive application for a writ of 
     habeas corpus; and
       ``(C) any redetermination of an application for a writ of 
     habeas corpus or related appeal following a remand by the 
     court of appeals en banc or the Supreme Court for further 
     proceedings, in which case the limitation period shall run 
     from the date the remand is ordered.
       ``(3) The time limitations under this section shall not be 
     construed to entitle an applicant to a stay of execution, to 
     which the applicant would otherwise not be entitled, for the 
     purpose of litigating any application or appeal.
       ``(4)(A) The failure of a court to meet or comply with a 
     time limitation under this section shall not be a ground for 
     granting relief from a judgment of conviction or sentence.
       ``(B) The State may enforce a time limitation under this 
     section by applying for a writ of mandamus to the Supreme 
     Court.
       ``(5) The Administrative Office of United States Courts 
     shall submit to Congress an annual report on the compliance 
     by the courts of appeals with the time limitations under this 
     section.''.
       (b) Technical Amendment.--The part analysis for part IV of 
     title 28, United States Code, is amended by adding after the 
     item relating to chapter 153 the following new item:

``154.  Special  habeas  corpus  procedures  in  capital ca2261.''.....

       (c) Effective Date.--Chapter 154 of title 28, United States 
     Code (as added by subsection (a)) shall apply to cases 
     pending on or after the date of enactment of this Act.

     SEC. 108. TECHNICAL AMENDMENT.

       Section 408(q) of the Controlled Substances Act (21 U.S.C. 
     848(q)) is amended by amending paragraph (9) to read as 
     follows:
       ``(9) Upon a finding that investigative, expert, or other 
     services are reasonably necessary for the representation of 
     the defendant, whether in connection with issues relating to 
     guilt or the sentence, the court may authorize the 
     defendant's attorneys to obtain such services on behalf of 
     the defendant and, if so authorized, shall order the payment 
     of fees and expenses therefor under paragraph (10). No ex 
     parte proceeding, communication, or request may be considered 


[[Page H 12022]]
     pursuant to this section unless a proper showing is made concerning the 
     need for confidentiality. Any such proceeding, communication, 
     or request shall be transcribed and made a part of the record 
     available for appellate review.''.

     SEC. 109. SEVERABILITY.

       If any provision of this title, an amendment made by this 
     title, or the application of such provision or amendment to 
     any person or circumstance is held to be unconstitutional, 
     the remainder of this title, the amendments made by this 
     title, and the application of the provisions of such to any 
     person or circumstances shall not be affected thereby.
            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.


                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

[[Page H 12023]]

       (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 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.

[[Page H 12024]]


     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 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--

[[Page H 12025]]

       ``(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.
       ``(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.

[[Page H 12026]]

       ``(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.--
       ``(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.

[[Page H 12027]]

       ``(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 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 

[[Page H 12028]]
     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, 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.

[[Page H 12029]]


     ``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 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;

[[Page H 12030]]

       (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--
       (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.).

[[Page H 12031]]

       (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 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 

[[Page H 12032]]
     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, 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 

[[Page H 12033]]
     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;
       (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 

[[Page H 12034]]
     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;
       (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.

[[Page H 12035]]


     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 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 

[[Page H 12036]]
     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 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.

[[Page H 12037]]

       (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.

     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:

[[Page H 12038]]


           ``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 
     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

[[Page H 12039]]

       ``(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 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 

[[Page H 12040]]
     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 
     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 

[[Page H 12041]]
     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 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 

[[Page H 12042]]
     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 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.

[[Page H 12043]]

``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,''.
                  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 

[[Page H 12044]]
     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, 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.

[[Page H 12045]]

       (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 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.

[[Page H 12046]]


     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.
  The SPEAKER pro tempore. Pursuant to the rule, it shall be in order 
for the chairman of the Committee on Ways and Means or his designee to 
offer one motion to amend, which shall be considered read and shall be 
debatable for 20 minutes, equally divided and controlled by the 
proponent and an opponent.
  Further, it shall be in order to consider one motion to amend by the 
gentleman from Pennsylvania [Mr. Walker], or his designee, which shall 
be considered read and shall be debatable for 40 minutes, equally 
divided and controlled by the proponent and an opponent.
  The Chair understands that the gentleman from Texas will not offer an 
amendment.
  Mr. ARCHER. The Speaker is correct and the gentleman from 
Pennsylvania [Mr. Walker], will offer that amendment.


                    amendment offered by Mr. walker

  Mr. WALKER. Mr. Speaker, I offer an amendment made in order under the 
rule.
  The SPEAKER pro tempore. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment offered by Mr. Walker:
       At the appropriate place in the bill, add the following:
                      TITLE III-REGULATORY REFORM

     SEC. 3001. SHORT TITLE.

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

     SEC. 3002. ANALYSIS OF AGENCY RULES.

       (a) In General.--(1) 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 $100,000,000 or 
     more;
       ``(B) a major increase in costs or prices for consumers, 
     individual industries, Federal, State, or local government 
     agencies, or geographic regions, or
       ``(C) significant adverse effects on competition, 
     employment, investment, productivity, innovation, or on the 
     ability of United States-based enterprises to compete with 
     foreign-based enterprises in domestic and export markets;
       ``(16) `Director' means the Director of the Office of 
     Management and Budget;
       ``(17) `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) `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; and
       ``(19) `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, unless precluded by 
     the statute granting the rulemaking authority.''.
       (2) 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.''.
       (3)(A) Hearing Requirement.--Section 553 of title 5, United 
     States Code, 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 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.''.
       (4) Section 553 of title 5, United States Code, is further 
     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 

[[Page H 12047]]
     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 subparagrph (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 statute.
       ``(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.''.
       (5) Section 553 of title 5, United States Code, is further 
     amended by adding after subsection (i) the following:
       ``(j) To the extent practicable, the head of an agency 
     shall seek to ensure that any proposed major rule or 
     regulatory impact analysis of such a rule is written in a 
     reasonably simple and understandable manner and provides 
     adequate notice of the content of the rule to affected 
     persons.''.
       (6) Section 553 of title 5, United States Code, 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 paragraph (1) applies, the agency 
     shall comply with the provisions of this subchapter and, as 
     thereafter necessary, revise the rule.
       (7) Section 553 of title 5, United States Code, is further 
     amended by adding after subsection (k) the following:
       ``(l) The provisions of this section regarding major rules 
     shall not apply to--
       ``(1) 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;
       ``(2) 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
       ``(3) 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.''.
       (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 amendments made by this subsection shall apply only 
     to final agency rules issued after rulemaking begun after the 
     date of enactment of this Act.

     SEC. 3003. RISK ASSESSMENT.

       (a) In General.--Chapter 6 of title 5, United States Code, 
     is amended by adding at the end the following:

                   ``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.

[[Page H 12048]]

       ``(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 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. 

[[Page H 12049]]
     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 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

[[Page H 12050]]

       ``(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.
       ``(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;

[[Page H 12051]]

       ``(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.''.
       (b) Clerical Amendment.--The table of sections appearing at 
     the beginning of chapter 6 of title 5, United States Code, is 
     amended--
       (1) by inserting immediately below the chapter heading the 
     following:

               ``SUBCHAPTER I--REGULATORY ANALYSIS''; and

       (2) by adding at the end the following:

                   ``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.''.

     SEC. 3004. REGULATORY FLEXIBILITY ANALYSIS.

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

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

[[Page H 12052]]

       ``(3) Response.--If the Chief Counsel for Advocacy 
     transmits to an agency a statement of effect on a proposed 
     rule in accordance with paragraph (2), the agency shall 
     publish the statement, together with the response of the 
     agency to the statement, in the Federal Register at the time 
     of publication of general notice of proposed rulemaking for 
     the rule.
       ``(4) Special rule.--Any proposed rules issued by an 
     appropriate Federal banking agency (as that term is defined 
     in section 3(q) of the Federal Deposit Insurance Act (12 
     U.S.C. 1813(q)), the National Credit Union Administration, or 
     the Office of Federal Housing Enterprise Oversight, in 
     connection with the implementation of monetary policy or to 
     ensure the safety and soundness of federally insured 
     depository institutions, any affiliate of such an 
     institution, credit unions, or government sponsored housing 
     enterprises or to protect the Federal deposit insurance funds 
     shall not be subject to the requirements of this 
     subsection.''.
       (B) Conforming amendment.--Section 603(a) of title 5, 
     United States Code, is amended by inserting ``in accordance 
     with section 612(d)'' before the period at the end of the 
     last sentence.
       (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.
       (b) Subchapter Heading.--Chapter 6 of title 5, United 
     States Code, is amended by inserting immediately before 
     section 601, the following subchapter heading:

                 ``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; or
       ``(F) 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 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 acted reasonably in good faith based upon the 
     language of the rule as published in the Federal Register.
       ``(b) 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.
       ``(c) This section shall apply to any action filed after 
     the date of the enactment of the Comprehensive Regulatory 
     Reform Act of 1995.''.
       (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.
``709. Agency interpretations in civil and criminal actions.''.

     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
       ``(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 

[[Page H 12053]]
     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) Section 802 shall apply in accordance with its 
     terms to any major rule that was published in the Federal 
     Register (as a rule that shall take effect as a final rule) 
     in the period beginning on November 20, 1994, through the 
     date of enactment of the Comprehensive Regulatory Reform Act 
     of 1995.
       ``(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) 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 joint 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 joint resolution described in subsection (a) has not 
     reported such joint resolution (or an identical joint 
     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 joint resolution upon a petition 
     supported in writing by 30 Members of the Senate, and such 
     joint 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 joint 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 joint resolution, and all 
     points of order against the joint resolution (and against 
     consideration of the joint 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 joint 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 
     joint 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 joint 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).
       ``(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, 

[[Page H 12054]]
     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
       (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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 

[[Page H 12055]]
  Pennsylvania [Mr. Walker] and a Member opposed each will be recognized 
for 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania [Mr. Walker].
  Mr. WALKER. Mr. Speaker, I yield myself 5 minutes.
  Mr. Speaker, I include for the Record letters from the National 
Federation of Independent Business, the Chamber of Commerce, and the 
American Farm Bureau in favor of the amendment.
  The information referred to follows:

            Pending Vote Member's Immediate Attention Please


                      nfib key small-business vote

     Support the Walker Regulatory Reform Amendment.
       Dear Representative: On behalf of the more than 600,000 
     members of the National Federation of Independent Business 
     (NFIB), I am writing to express NFIB's strong support for 
     Rep. Walker's regulatory reform amendment to the debt limit 
     extension legislation.
       Since regulatory reform legislation was passed in late 
     February, small business owners have been waiting for 
     regulatory relief, but to no avail. NFIB members continue to 
     call and write with their horror stories of regulation that 
     is still strangling their business.
       Rep. Walker's amendment would address small business 
     concerns by including provisions dealing with Cost-Benefit 
     Analysis/Risk Assessment; Judicial Review of the Regulatory 
     Flexibility Act; Regulatory Impact Requirements; and, 
     Congressional Review.
       NFIB urges a YES VOTE on the Walker Amendment to the debt 
     limit extension legislation. This vote will be considered a 
     Key Small Business Vote for the 104th Congress.
           Sincerely,

                                             Donald A. Danner,

                                                   Vice President,
     Federal Governmental Relations.
                                                                    ____

                                        Chamber of Commerce of the


                                     United States of America,

                                 Washington, DC, November 9, 1995.
       Members of the House of Representatives: The House of 
     Representatives will consider shortly an amendment to the 
     debt extension bill, H.R. 2586, which provides an opportunity 
     to enact real regulatory reform this year. The U.S. Chamber 
     of Commerce Federation of 215,000 businesses, 3,000 state and 
     local chambers of commerce, 1,200 trade and professional 
     associations, and 75 American Chambers of Commerce abroad 
     urges your support for the Walker amendment on regulatory 
     reform.
       The Walker regulatory reform amendment has been carefully 
     crafted to encompass provisions from the House and Senate 
     regulatory reform bills. It includes provisions to require 
     the Federal government to conduct a risk assessment and cost/
     benefit analysis for major regulations effecting environment, 
     health and safety. These were important components of the 
     Contract With America that received overwhelming support in 
     the House earlier this year.
       Now is the time to reform the regulatory system. We need to 
     streamline, modernize, and update our regulatory system and 
     direct limited resources to the most serious problems first. 
     Business supports a clean and healthy environment and a safe 
     workplace for employees, but is also concerned about making 
     sure the money spent by business addresses the most serious 
     problems in the most cost-effective manner.
       We urge your support for the Walker amendment which 
     provides an important opportunity to move critically needed 
     regulatory reform legislation forward this year. The U.S. 
     Chamber of Commerce will score this as a key vote in its 
     annual ``How They Voted'' ratings.
           Sincerely,
     R. Bruce Josten.
                                                                    ____



                              American Farm Bureau Federation,

                                 Washington, DC, November 9, 1995.
       Dear Congressman: The American Farm Bureau strongly 
     supports an amendment to be offered this afternoon by Rep. 
     Bob Walker (R-PA) to H.R. 2586, the debt ceiling extension 
     bill.
       The Walker amendment adds to H.R. 2586 the risk assessment 
     and cost-benefit analysis requirements for federal 
     regulations similar to those approved overwhelmingly by the 
     House last February. This will provide important relief for 
     farmers and ranchers from unnecessary regulatory burdens.
       The nation's farmers and ranchers have seen their 
     regulatory burden explode over the past decade. Virtually 
     every activity and aspect of farming is regulated by the 
     Federal government. Many young farmers and ranchers see the 
     burden of unchecked government regulation as a major 
     impediment to continuing in agriculture. To some of the best 
     and brightest in agriculture, the risks and uncertainty now 
     imposed by government rivals that of the markets and the 
     weather.
       Of utmost importance to agriculture, the Walker amendment 
     also reforms the zero-tolerance Delaney Clause provision. 
     Under strict interpretation, the Delaney Clause prohibits the 
     presence of food additives in any concentration if they can 
     be shown to cause cancer in laboratory animals. Today, 
     scientists are able to detect these substances in much 
     smaller concentrations than were detectable 37 years ago, 
     when the Delaney Clause was written. Although there is a 
     consensus among regulators, health experts and scientists 
     that these small concentrations may present no real risk to 
     health, many crop protection products are now scheduled to be 
     canceled because they are detectable, not because they are 
     unsafe. Important crops in virtually every state will be 
     affected.
       We strongly urge your support for the Walker amendment to 
     H.R. 2586.
                                               Richard W. Newpher,
                            Executive Director, Washington Office.

  Mr. Speaker, the amendment I am now offering on behalf of myself, 
Commerce Chairman Bliley and the House leadership is a good-faith 
compromise between the House and Senate regulatory reform bills.
  The Walker-Bliley amendment uses S. 343, the Dole-Johnston bill, as 
its base text. That version garnered 58 votes in the Senate in July. 
The House version received 277 votes as H.R. 9 of the Contract With 
America.
  Mr. Speaker, the most important thing this Congress can do is to 
balance the budget so we can stop having to keep heaping even more 
Federal debt on our children. To accomplish this paramount goal, we 
have to cut unnecessary spending and costs. This goes for the private 
sector as well, which is what this amendment addresses.
       Mr. Speaker, in an era of tough budget realities which the 
     bill before us brings home to roost, policymakers need to 
     make choices and set priorities--to concentrate scarce 
     dollars where they will do the most good, and analyze 
     alternatives to achieve the goal of public safety at the 
     lowest possible cost. At this critical point in our effort to 
     change the way Washington works, we believe that we have a 
unique opportunity to move this consensus reform now. After 10 years of 
lipservice by the Democrat Congress to U.S. competitiveness, but no 
action except for even more Federal spending in the form of industrial 
policy subsidies, we now have the chance to do something really big.

  President Clinton says he has to raise the debt ceiling. Well, at the 
same time we can give him the opportunity to remove the need for so 
much wasteful Federal corporate welfare spending which combats the 
unnecessary costs of unjustified regulations. This landmark 
competitiveness initiative, perhaps the most important we can enact, is 
worth 100 advanced technology programs.
  Mr. Speaker, the purpose of this amendment is to provide uniform 
guidance for all Federal agencies to conduct scientifically objective 
and unbiased risk assessments in an economically sensible way. The 
amendment includes the following:
  It raises the threshold of regulations requiring the new cost-benefit 
analysis to $75 million of economic cost per year. This is a softening 
amendment--the House threshold was $25 million.
  It uses the House-passed risk-assessment title which passed by a veto 
proof 286 to 141 with 226 Republicans and 60 Democrats voting in favor. 
It provides the public and the Government with the most reasonable, 
realistic information by requiring the most plausible level of risk or 
best estimates instead of worst case scenario or upper bound estimates. 
This section also changes the face of risk assessment by requiring the 
nature and magnitude of risks to human health, safety, or the 
environment be put into context for the public with realistic 
comparisons to everyday risks commonly experienced and understood. In 
cases where one or more hazards results because of reduction of a 
targeted risk, the risk of the substitution must be communicated 
clearly to the public.
  It requires that new regulations not be issued unless the costs are 
reasonably related to the benefits. If current law calls for a 
regulation which cannot be justified by cost-benefit analysis, that 
statutory standard is superseded--the so-called super mandate. This 
also passed by that same 286 to 141 with all but 2 Republicans and 60 
Democrats voting in favor.
  It creates a systematic program for peer review. For regulations 
which have an economic impact of $100 million or more, groups of 
experts would be brought together to independently evaluate the manner 
in which the risk assessments are conducted. This language is verbatim 
the House bill.
  This amendment exempts certain activities such as military readiness 
and emergencies. This allows Federal agencies to continue to use their 
emergency authority, which is consistent with current law.

[[Page H 12056]]

  This reform is prospective. It does not include the petition process 
for retroactive review of existing regulations, which was rejected by 
this House.
  Judicial review of compliance with the requirements of this bill is 
available under the Administrative Procedures Act for final agency 
actions. There is no two bites of the apple possible allowing for 
increased litigation. This is fully consistent with the House-passed 
bill.
  It includes a top priority of the small business community and the 
National Federation of Independent Businesses. This reg flex provision 
allows small business the right of judicial review to enforce the 
Regulatory Flexibility Act. The Regulatory Flexibility Act calls for 
small business to be exempted from onerous agency regulations. There is 
virtual unanimous support for this legislation in both Houses.
  The amendment updates the 1950's Delaney clause to prohibit all but 
``negligible threat to human health'' amounts of chemicals in food.
  The bill includes the House-passed regulatory impact analysis 
requirement. Like environment impact statements, this requires agencies 
to estimate the economic impact of their regulations before issuing 
them.
  The amendment requires the President to issue a biennial regulatory 
budget. This is a 2-year accounting of the total regulatory costs on 
the economy and people's lives. The so-called Nickles amendment is 
included instead of the regulatory moratorium that passed the House. 
This is a softening amendment. Nickles allows Congress 60 days to 
disapprove any regulation issued after November 20, 1994, if the 
President signs such disapproval or his veto is overridden.
  Mr. Speaker, as you can see this is a reasonable merging of what's 
best, most reasonable and workable in the House and Senate bills. It is 
not as tough as the House bill, nor as loose as the Senate bill--in 
short, a good compromise. Every Member who voted for the House bill 
earlier this year can and should support this amendment today. Doing so 
will make it reality.

                              {time}  1530

  Mr. Speaker, I reserve the balance of my time.
  The SPEAKER pro tempore (Mr. Hobson). Is the gentleman from Virginia 
[Mr. Scott] opposed to the bill?
  Mr. SCOTT. Mr. Speaker, I am opposed to the bill and am representing 
the Committee on the Judiciary.
  The SPEAKER pro tempore. The gentleman from Virginia [Mr. Scott] is 
recognized for 10 minutes.
  Mr. SCOTT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this is a complex legislation and has no place in the 
debt ceiling resolution. It has been sprung on the minority party at 
9:30 this morning. I understand there have been three different 
versions, so it is unclear exactly what is being presented to us at 
this time. It is unfair to have such complex legislation even being 
considered in this format.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from California [Mr. Brown], the ranking member on the Committee on 
Science.
  (Mr. BROWN of California asked and was given permission to revise and 
extend his remarks.)
  Mr. BROWN of California. Mr. Chairman, I am in very strong objection 
to the content of this bill, but as I said earlier during general 
debate, I think I will spend most of my time speaking with regard to 
the process involved in this bill.
  Mr. Speaker, I want to commend the gentleman from Pennsylvania [Mr. 
Walker] for the many years that he has spent working with me in most 
cases on this type of legislation. We do badly need to improve the 
processes by which we make risk assessments, do regulatory impact 
analysis and cost-benefit studies, and this bill does contain a 
response to that need.
  Mr. Speaker, I did not support the bill in the House when it was 
originally passed because I did not like the content or the form of the 
response that the bill contained, but that is not to belittle the need 
for constructive change.
  This position is one that the Democratic administration shared when 
the bill was originally on the floor. They indicated in a letter than 
they were strongly opposed and that, while the recognized the need to 
improve risk assessment and cost-benefit legislation, they did not feel 
that this bill met that criteria.
  The bill was passed, nevertheless, and went over to the Senate, and 
it remains in the Senate and has not been passed. I said during general 
debate that the statement of the gentleman from Pennsylvania to the 
Committee on Rules last night, which implied that it had received 58 
votes in the Senate, constituted a falsehood in advertising because 
there was never a vote taken in the Senate, except on a motion to 
cloture, which failed because it requires 60 votes and it only had 58.
  Mr. Speaker, I am sure the gentleman from Pennsylvania would say that 
all those 58 who voted for cloture would have voted for the bill and, 
hence, his statement that implied they had was essentially correct. 
From long experience, I know how able the gentleman is to defend these 
kinds of statements and I look forward to whatever defense the 
gentleman may have.
  But, Mr. Speaker, as a matter of fact, this is not a consolidation or 
compromise or an effort to reach agreement between the House- and 
Senate-passed bill. To the best of my information, there has been no 
compromise process with the Senate. The Senate staff and Members that 
we have spoken to know of no such effort, and that includes Senator 
Chafee and Senator Robb.
  Mr. Speaker, I am at a loss to understand what has taken place that 
leads the gentleman from Pennsylvania to state that this is a 
compromise between the House- and the Senate-passed bills.
  Now, I know there are a lot of strange things taking place here. The 
gentleman is a devotee of improved efficiency in almost everything, and 
I share that with him. I think he has found new shortcuts to reach 
agreement between the appropriate people in the House and in the 
Senate. The gentleman has not revealed to me yet what those shortcuts 
are, and he, I think, would imply that when I raise this issue I am 
being, in the words that the gentleman used earlier today, engaged in 
obstruction, obfuscation, and some other words that I did not quite get 
down here.
  Mr. Speaker, let me assure the gentleman that I respect his point of 
view, because it comes from a master in this field. Anything that I 
have learned about how to do that, I learned from the gentleman from 
Pennsylvania in earlier years. I have not become nearly as proficient 
as the gentleman, but I am trying to improve and, with his help, I am 
sure that I will.
  Mr. Speaker, I would have appreciated it if the gentleman could have 
let me know that he was going to appear before the Committee on Rules 
last night and submit a bill, 132 pages, I believe it is, that the 
gentleman knew I was vitally interested in.
  Frankly, I would be glad to work constructively with the gentleman in 
securing a proper version of that bill, but I was not notified. We 
received a version of the bill, I think the second version, at about 10 
o'clock this morning.
  Now, the gentleman from Michigan [Mr. Conyers] complained that the 
portions of the bill that he was concerned about, he only received this 
morning at 11 o'clock. I would say to the gentleman from Michigan, 
``Have no fear. You are not being discriminated against. We all are in 
the same position.''
  Mr. Speaker, I think that that is common to all of the Members on our 
side. We are receiving very little, if any, notice, and if we object to 
that, we are accused of obfuscating and obstructing the smooth process 
by which this efficient organization is proceeding.
  Mr. Speaker, I think history will record that we are seeing new 
records in smoothness and efficiency here.
  Mr. CONYERS. Mr. Speaker, will the gentleman yield?
  Mr. BROWN of California. I yield to the gentleman from Michigan.
  Mr. CONYERS. Mr. Speaker, in some quarters we are accused of 
dialectal materialism as well.
  Mr. BROWN of California. Mr. Speaker, reclaiming my time, I heard 
that remark, too, from a gentleman that I have high respect and 
admiration for.
  Mr. Speaker, to confuse the matter more, I have a version of the bill 
which I understand was sent to the desk that 

[[Page H 12057]]
is marked as having been received from the counsel's office at 2:23 
p.m. today. It is now 3:30, so this third version of the bill which has 
major changes over the first two which was received after we entered 
into debate on this amendment.
  Now, I indicated earlier that I do not want to discuss content. I 
cannot discuss content. I have not had a chance to read the content. I 
do not know what is in the bill. My staff counsel informs me that there 
were three different versions of the definition of ``major rule.'' The 
first definition had a $50 million cap; the second one had a $75 
million cap; and the one we just received has a $100 million cap. Mr. 
Speaker, I would be prepared to debate any one of those, if I knew what 
it is the gentleman from Pennsylvania really wanted to have in the 
final version. However, having spent all of my time debating those 
three versions, I would probably not have the time to debate the many 
other provisions which have been likewise changed in the three 
different versions of the bill.
  That, Mr. Speaker, is a total collapse of reasonable legislative 
process, and I do not think that the Congress of the United States 
ought to allow it to happen.
  I know that most of us on both sides know that this is a little bit 
of game playing, and none of this bill is going to be enacted into law 
and that we are using this time in order to make points. I am using 
this time in order to make points. I admit it. I am making a point that 
this system has totally disintegrated.
  Mr. Speaker, there is no communication between majority and minority. 
There is no effort to let us know what is going on. There is a 
disregard for the truth in telling us what is happening, and I object 
very strongly to that.
  Mr. Speaker, today, we reach the heights of farce in the legislative 
process. I suppose it is inevitable that all fervent revolutionaries 
believe that the ends justify the means. Apparently, the Republican 
leadership believes that the principles in the Contract With America 
are somehow more important than the democratic process.
  Mr. Speaker, in a sweeping gesture of generosity, the Rules Committee 
has permitted us 40 minutes of debate on a 112 page nongermane 
amendment which we first saw this morning at 11 a.m. We were not even 
given the courtesy of being informed that the Rules Committee would be 
meeting late last night to consider making this amendment in order.
  How much debate does the Republican leadership really expect under 
these circumstances?
  The fact is that the rules of this House have been twisted to prevent 
any intelligent or informed consideration of this amendment. Under the 
rules of the House, of course, this amendment would ordinarily be 
entirely out of order as a nongermane amendment to the debt limit 
extension bill. But by virtue of the orders of the Republican 
leadership, that rule and all other rules guaranteeing Members adequate 
notice and an orderly considered process have been brushed aside. Not 
that it makes any difference, since even if we had an adequate 
opportunity to understand what we are considering, we are barred from 
offering amendments in any case.
  Where did this amendment come from? According to the majority, it 
represents a compromise. But with whom? The Senate has never passed its 
regulatory reform legislation, so it cannot be a compromise with the 
Senate. So why are we passing this bill again when the problem appears 
to be in the other body?
  The question, of course, is what are the Republicans trying to hide? 
The regulatory reform bill passed by the House as part of the Contract 
With America was so extreme that even the Speaker publicly acknowledged 
that changes would have to be made. As it passed the House, H.R. 9 
would not have reformed the regulatory system. Instead, the intention 
was to kill the regulatory system through a slow strangulation of red 
tape and needless litigation.
  If the majority was serious about improving regulatory reform, they 
would have supported increased resources for the regulatory agencies to 
carry out the scientific research, risk assessments, and cost-benefit 
analysis needed to improve regulatory decisionmaking. Instead, the 
Republicans have slashed agency budgets.
  Mr. Speaker, we have stated on this side of the aisle over and over 
again that we support reasonable regulatory reform which promotes risk 
assessment and cost-benefit analysis. But we are talking to ourselves. 
The other side appears more interested in slogans than in real 
solutions, as today's actions all too early demonstrate.
  I urge a ``no'' vote on the amendment, and reserve the balance of my 
time.
  Mr. WALKER. Mr. Speaker, I yield 2 minutes to the gentleman from 
Pennsylvania [Mr. Clinger].
  (Mr. CLINGER asked and was given permission to revise and extend his 
remarks.)
  Mr. CLINGER. Mr. Speaker, I rise in very strong support of my 
Pennsylvania colleague's amendment. This is a regulatory reform 
amendment which is based upon legislation passed earlier this year in 
the House and received very strong bipartisan support. Let's not forget 
that H.R. 1022, the cost-benefit and risk assessment legislation, 
passed 286-141.
  This amendment combines some of the best features of the House bills, 
along with some similar provisions considered by the Senate, in order 
to achieve comprehensive regulatory reform. It includes risk assessment 
and cost-benefit analysis along with a review process for Congress to 
look at proposed and final rules. There are several House and Senate 
Members that should be commended for their hard work in this reform 
area, but I would specifically like to commend two other House 
chairmen, Chairmen Bliley and Walker, Majority Leader Dick Armey, 
Majority Whip Tom DeLay, Congressmen McIntosh, Condit, Peterson, along 
with Senators Dole, Johnston, and Nickles, for their never-ending 
efforts to try and get regulatory reforms enacted.
  Mr. Speaker, a major platform of this Congress is to eliminate as 
much redtape as possible to help small businesses, and ease the 
economic burdens on society. We have all heard the horror stories that 
abound outside the beltway and the cries from our constituents--the 
homebuilders, consumers, farmers, and small business owners as they 
plead to be rescued from this sea of redtape. It is incumbent upon us 
to reassess the size and scope of the impact that the government has in 
the daily lives of our citizens. And regulatory reform is the key to 
achieving this goal.
  It is no secret that the costs of regulation to our economy are high. 
According to President Clinton's National Performance Review, it is 
estimated that the cost of regulation is about $430 billion per year, 9 
percent of our gross domestic product, or roughly $6,000 per household. 
This should make us take pause. We simply cannot expect the economy to 
grow while trying to withstand this burden.
  Federal agencies need to carefully assess their regulatory programs 
and prioritize very limited Federal resources. Regulatory reform, such 
as the risk assessment and cost-benefit provisions included in this 
amendment, require this prioritization. We cannot continue along the 
path we are on and expect society to continue to shoulder the burdens 
of overregulation. We must start to reverse the trend of years of 
overregulation.
  Mr. Speaker, we are looking for a balance. No one disagrees that some 
of these regulations are necessary and even beneficial. We all want 
clean air, clean water, and safe working environments. But we must 
balance adequate protection for our citizens and a healthy environment 
along with a healthy economy and less government intrusion. The 
pendulum has swung too far the other way. This legislation corrects 
that circumstance. It is our only hope.
  I close by urging my colleagues to support this amendment and the 
Senate to pass this much needed legislation in an expeditious fashion.
  Mr. SCOTT. Mr. Speaker, may I inquire as to the time remaining?
  The SPEAKER pro tempore. The gentleman from Virginia [Mr. Scott] has 
12 minutes remaining, and the gentleman from Pennsylvania [Mr. Walker] 
has 13\1/2\ minutes remaining.
  Mr. SCOTT. Mr. Speaker, I yield 3 minutes to the gentleman from 
Michigan [Mr. Conyers], ranking member of the Committee on the 
Judiciary.
  (Mr. CONYERS asked and was given permission to revise and extend his 
remarks.).
  Mr. CONYERS. Mr. Speaker, I congratulate the gentleman from Virginia 
[Mr. Scott], my colleague from the Committee on the Judiciary.
  Mr. Speaker, I would like to just point out to the gentleman from 
Pennsylvania [Mr. Walker] that we have really hit a new low here today. 
It is an insult to this legislative body to do what we are doing in 
rewriting the Nation's regulatory laws. Mr. Speaker, I 

[[Page H 12058]]
say to my colleagues on the other side of the aisle, You are the 
majority. Why do we have to pervert the process so obscenely to arrive 
at this point?
  Mr. Speaker, here is 112 pages, a second version that has just 
arrived. No notice to the ranking minority member, and what is 
involved? What is the hidden bottom line in this? Risk assessment and 
cost-benefit analysis. Face it. That is what it is all about. That is 
why they cannot debate it. That is why they cannot bring it through the 
regular committee process. That is why they cannot notify the ranking 
Democrats on all these committees.

                              {time}  1545

  This process that the gentleman from Pennsylvania brings to our 
attention, adding on to a 300-plus-page bill now, would tie up the 
regulatory system in hopeless bureaucracy and redtape; the gentleman, 
of all Members, who has lectured us about redtape and bureaucracy for 
lo these many years. It sets an absurdly low-limit threshold for 
applying cost-benefit and regulatory-impact analysis and would tie the 
courts up in endless litigation.
  Congratulations, sir. You really got it over this time. It really 
worked. We are ramming this baby through 100 miles an hour. What 
difference that there is a little process trampled on?
  I mean, that is the majority and this is the way it is going to be. 
But history will record.
  It is an insult to this legislative body that we are even debating 
this broad ranging rewrite of the Nation's regulatory laws.
  We in minority have gotten use to voting on matters without having 
had the opportunity to conduct hearings or hold committee markups. But 
today the Republicans have taken their distortion of the legislative 
process to new heights. Today we will be forced to vote on a complete 
rewrite of our regulatory laws without having had a chance to even 
review the language.
  The legislation appears to be some Frankenstein combination of a 
number of separate bills which have been considered by a number of 
different committees, including the Judiciary Committee. No one seems 
to know what is in the final version. None of the Senators who has been 
working on this issue knows what is in it, the Administration does not 
know what is in it, and I would doubt a single Member who will vote on 
this amendment has any detailed knowledge of what is in this amendment. 
We cannot call it a compromise, because it has not been negotiated with 
anyone.
  If it is anything like some of the previous incantations we have seen 
this Congress we can be sure it constitutes an unprecedented assault on 
our regulations. Sure, we all want to streamline the regulatory system, 
but this would take a meat ax to our environmental protections, our 
protections against cancer, our airline safety laws and other similar 
protections.
  The amendment would tie up our regulatory system in needless 
bureaucracy and redtape. It would set an absurdly low-limit threshold 
for applying cost-benefit and regulatory-impact analyses. It would tie 
up the courts in endless litigation.
  Whether or not one agrees with the goals of the legislation, surely 
we can agree that the amendment should not be considered under these 
high-pressure procedures, and should not be attached to a debt limit in 
an effort to blackmail the President and the American people into 
accepting the Contract With America.
  I urge my colleagues to oppose this amendment, and restore sanity 
back to the legislative process.
  Mr. WALKER. Mr. Speaker, I yield 3 minutes to the gentleman from 
Virginia [Mr. Bliley] who is a cosponsor.
  (Mr. BLILEY asked and was given permission to revise and extend his 
remarks.)
  Mr. BLILEY. Mr. Speaker, the Walker-Bliley amendment on regulatory 
reform is critical to the Nation's economic future. Today we consider 
yet another increase in the Nation's debt. This Congress must make 
clear that the decades long growth of taxing, spending and increasing 
regulatory burdens must change. Economic reality has caught up. For 
years, many of us have argued the critical need for regulatory reform 
to ensure our economic future.
  As part of the Contract With America, the House of Representatives 
passed H.R. 1022, the Risk Assessment and Cost-Benefit Act of 1995 by a 
vote of 286 to 141. Sixty Democrats joined House Republicans in 
supporting this legislation. Chairman Walker and I introduced H.R. 1022 
to ensure Federal regulatory programs are based on sound science and 
common sense assessment of the cost and benefits of new regulations. 
The bill was supported by a sweeping array of small businesses, 
industry groups, States and local governments.
  Local governments and American businesses literally spend billions of 
dollars on often unnecessary or poorly considered Federal regulations. 
We must take a firm stand that we value the contribution of these 
groups to our society and must not needlessly add to their burdens. 
Responsible Government must ensure that regulations are justified and 
reasonable on the facts.
  The Nation's regulatory burden is projected at between $450 and $850 
billion a year and growing. Just as we take steps to assure that the 
rate of growth of the budget is held in check by the year 2002, we must 
also take steps to ensure that unnecessary regulations do not shackle 
the economic engine that will be critical to improving the quality of 
life for ourselves and our children.
  A Washington Post editorial this year states:

       The United States has become an over-regulated society. The 
     government too often seems to be battling major and minor 
     risks, widespread and narrow, real and negligible with equal 
     zeal. The underlying statutes are not a coherent body of law 
     but a kind of archaeologic pile, each layer a reflection of 
     headlines and political impulses of the day. Too little 
     attention is paid to the cost of the whole and the relation 
     of cost to benefit.

  This amendment would be a solid step for responsible regulatory 
reform to put our regulatory programs on a more sound footing. The 
Walker-Bliley amendment includes the House risk assessment and cost-
benefit reforms passed overwhelmingly by the House earlier this year. 
Compromises in some areas have been made. For example, H.R. 1022 
defined a major rule as a rule which costs over $25 million in annual 
compliance costs.
  I believe that is the appropriate definition. In a compromise with 
the Senate effort, however, this amendment defines major rules as those 
costing $75 million in annual compliance costs.
  Despite this compromise, the Walker-Bliley amendment represents 
strong reform to assure risk assessments are objective, and unbiased 
and that there is a reasonable relationship between the costs and 
benefits of the regulations.
  In addition, the amendment provides reform under the Regulatory 
Flexibility Act, and provides for congressional review of regulations. 
The amendment also contains portions of the Regulatory Accounting Act 
of 1995, which I introduced along with Mr. McIntosh, Condit, and 
Stenholm. This provision is also a part of the Senate legislation. This 
provision would, for the first time, require a biennial accounting 
statement of Federal regulatory costs.
  We cannot wait forever for these reforms. Those who continue to 
resort to fearmongering, mischaracterization, delay, and obstructionism 
to prevent this reform must understand the resolve of the proponents of 
real change.
  I ask my colleagues to support this amendment and make a real 
difference for local governments and businesses across the country.
  Mr. SCOTT. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Illinois [Mrs. Collins], ranking member of the Committee on Government 
Reform and Oversight.
  (Mrs. COLLINS of Illinois asked and was given permission to revise 
and extend her remarks.)
  Mrs. COLLINS of Illinois. Mr. Speaker, I rise in opposition to the 
amendment of the gentleman from Pennsylvania.
  Mr. Speaker, it is astounding that the gentleman's amendment is 
portrayed as a compromise between the House and the Senate regulatory 
reform proposals. We all know that the Senate has yet to vote on 
regulatory reform. How can the amendment be a compromise when there is 
no Senate regulatory reform bill with which to compromise?
  Furthermore, the gentleman did not make his amendment available to 
Members on this side of the aisle. The one copy he left at the Rules 
Committee late last night was copied an hour or so ago and given to us. 
However, I understand the version of the amendment we are considering 
now is different from the amendment discussed at Rules Committee and 
printed in the Record today.
  This amendment is 112 pages long and while we have started reviewing 
it, I have no idea even now whether the regulatory reform issues that 
the Committee on Government Reform and Oversight considered are in it, 
or not. I do understand, however, that the amendment is very different 
than the regulatory reform bill that passed this House.
  Mr. Speaker, this kind of sneaky action makes a farce out of the 
legislative process. 

[[Page H 12059]]
The House has already passed its regulatory reform bill. It is now up 
to the Senate to act. If and when the Senate does act, then and only 
then can a compromise be reached.
  Mr. Speaker, there is a place for the consideration of regulatory 
reform proposals, but the debt limit bill is not one of them. I 
strongly urge my colleagues to vote ``no'' on this Mickey Mouse 
amendment.
  Mr. WALKER. Mr. Speaker, I yield 2 minutes to the gentleman from 
Pennsylvania [Mr. Gekas].
  (Mr. GEKAS asked and was given permission to revise and extend his 
remarks.)
  Mr. GEKAS. Mr. Speaker, my role here today is to reemphasize that the 
provisions of this amendment have been favorably met by the House of 
Representatives in an overwhelming vote, 415 to 15, in two portions 
about which we speak. In regulatory flexibility, which is the heart of 
the legislation that we passed out of the Committee on the Judiciary, 
we add to it a feature that the business community, small and large, I 
must tell my colleagues, have been yearning for for years. That is the 
ability to have judicial review of an adverse impact that visits them 
in the conduct of their business.
  The Regulatory Flexibility Act, with which we have been living for 
generations now, never had that feature. Here now for the first time we 
offer all the disaffected entrepreneurs in our country the right to ask 
for an appeal from, a review of an adverse regulatory decision. That by 
itself should prompt us to support this amendment. The gentlewoman from 
Kansas [Mrs. Meyers] was able to in her subcommittee, as well as in 
mine, to reach an overwhelming consensus among the membership of those 
committees which we transferred to in the House here.
  The same is true of regulatory impact analysis where we were able to 
fine tune that portion of the businessman's entanglements in 
Washington. We produced legislation that, as I say, gained that 
overwhelming support which we now claim is important enough for Members 
to support this amendment.
  We are going to have, one way or another, we are going to have reform 
in regulatory flexibility and in regulatory impact analysis. But here 
is our chance to stick the tongue in the fire and leave it there to 
make sure that our goals are met.
  The SPEAKER pro tempore (Mr. Hobson). The Chair would inform the 
gentleman from Virginia [Mr. Scott] that he has 7 minutes remaining, 
and the gentleman from Pennsylvania [Mr. Walker] has 8\1/2\ minutes 
remaining.
  Mr. SCOTT. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Michigan [Ms. Rivers].
  Ms. RIVERS. Mr. Speaker, I watched this process with interest 
throughout the afternoon, and I am reminded of one time when I went to 
the grocery store and I was looking for apples. When I looked at the 
apples I found that the apples available that day were spoiled. I did 
not want any. So the next day I went back and I took another look at 
the apples, and there were more bad apples. So I went home.
  The third day I came back and I finally found some good apples. They 
were perfect for what I wanted them for. Imagine my surprise when the 
grocer said to me, you can only have the good apples if you will buy 
all my bad apples. You must take everything that is here, the bad with 
the good, in order to get what you have come shopping for.
  Frankly, Mr. Speaker, that is what we are telling the American 
people, that they must buy everything that the majority party is 
selling, including the bad apples. Clearly, the other body, the 
President and the American people are not interested in what the 
majority is selling. If they were, moving these issues on freestanding 
bills would not be a problem.
  The American people understand what is going on today. They do not 
want partisan rancor. They do not want legislative blackmail. They want 
us to pass a clean bill. They want us to get on with the work of 
running this Nation, and they do not want us to let the bad apples 
spoil the barrel.
  Mr. WALKER. Mr. Speaker, I yield 2 minutes to the gentlewoman from 
Kansas [Mrs. Meyers].
  (Mrs. MEYERS of Kansas asked and was given permission to revise and 
extend her remarks.)
  Mrs. MEYERS of Kansas. Mr. Speaker, I rise today in strong support of 
the Walker amendment to H.R. 2586 and urge my colleagues to vote yes on 
its passage because of its importance to small business rules and 
regulations have greater economic impact on small business.
  Mr. Speaker, one of the most important reasons to vote yes on the 
Walker amendment is that it contains needed improvements to the 
Regulatory Flexibility Act. These improvements, which include judicial 
review of agency compliance with the Regulatory Flexibility Act, are 
overwhelmingly supported by this Nation's small businesses. At the 
recently concluded national White House Conference on Small Business, 
small business representatives from throughout this country made 
regulatory flexibility judicial review their No. 3 recommendation. That 
is clear evidence of strong support for this kind of regulatory reform 
that is contained in the Walker amendment.
  Moreover, Mr. Speaker, on March 1 of this year, in this very Chamber, 
we passed the amendments to the Regulatory Flexibility Act now 
contained in the Walker amendment by an overwhelmingly bipartisan vote 
of 415 to 15.
  Just last week, the House Committee on Small Business, which I chair, 
held a joint hearing with the Senate Committee on Small Business which 
focused on the very issue of the disproportionate burden that small 
businesses endure because of overregulation.
  Providing judicial review for agency compliance with the Regulatory 
Flexibility Act is something that this Nation's small businesses have 
worked for for years, and it is something they clearly deserve. Small 
businesses desperately need regulatory reform now--please vote yes on 
the Walker amendment.


                         Parliamentary Inquiry

  Mr. SCOTT. Mr. Speaker, we are the committee of jurisdiction. Do we 
have the right to close?
  The SPEAKER pro tempore. In the perception of the Chair, there is no 
reporting committee. Therefore, the proponent, the gentleman from 
Pennsylvania [Mr. Walker], has the right to close.
  Mr. SCOTT. Mr. Speaker, I have a parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman will state it.
  Mr. SCOTT. Mr. Speaker, we are supporting the printed bill that is 
before us. Would we not have the ability to close? We are defending the 
reported bill.
  The SPEAKER pro tempore. The prerogative of closing is to the manager 
of the bill, otherwise to the proponent of the amendment. The 
prerogative to close only goes to the amendment's opponent if he is a 
manager of the bill.
  Mr. SCOTT. Mr. Speaker, I reserve the balance of my time.
  The SPEAKER pro tempore. So there is no misunderstanding, the 
gentleman from Virginia [Mr. Scott] has 5\1/2\ minutes remaining, and 
the gentleman from Pennsylvania [Mr. Walker] has 6\1/2\ minutes.
  Mr. WALKER. Mr. Speaker, I yield 2 minutes to the gentleman from 
Florida [Mr. Mica].
  (Mr. MICA asked and was given permission to revise and extend his 
remarks.)
  Mr. MICA. Mr. Speaker, again, I want to try to bring this debate into 
perspective. I have my $270 here that I took out of my savings account. 
What we are going to do today is we are going to extend the debt limit 
for every man, woman, and child in the United States for a total of $67 
billion between today and December 12. That costs every man, woman, and 
child $269 of their hard-earned money just for that short period of 
time.

                              {time}  1600

  Now we have heard about regulatory reform. The gentleman from 
Pennsylvania [Mr. Walker] and I stood on this floor in the past 
Congress and debated regulatory reform, and we passed regulatory reform 
by overwhelming margins, but we have not seen regulatory reform.
  Now the other side has bought votes for three decades. They have paid 
for them with IOU's, and they have created a national debt of $1\1/2\ 
trillion, and we are asking today that, if we increase the national 
debt, we want reforms, we want regulatory reform, we want risk 
assessment, we want to look 

[[Page H 12060]]
at the cost and benefit of imposition of a new regulation, we want the 
reorganization of the Department of Commerce, and talk about supporting 
a trade policy. The United States has he most disorganized trade effort 
in the world with the highest, we are running the highest, trade 
deficit that we have ever had in the history of this Nation, and we are 
asking to reorganize it in this bill.
  So these are the downpayments we are asking for as we raise this debt 
up, as we obligate every citizen in this country for just the next 34 
days to $269 per person. By Thanksgiving it will be $118 per person for 
every person in this country.
  Mr. Speaker, I am telling my colleagues the other side will not be 
happy until every American is dependent on some kind of government 
program.
  Mr. WALKER. Mr. Speaker, I yield 1 minute to the gentleman from 
Florida [Mr. Scarborough].
  Mr. SCARBOROUGH. Mr. Speaker, we saw the gentleman from Florida [Mr. 
Mica] hold up his dollars. Let us talk about real money though because 
this has been labeled a Mickey Mouse idea.
  Fact of the matter is that the cost of regulations on the American 
people are estimated anywhere between $500 and $700 billion a year. 
There is nothing Mickey Mouse about the growing price of regulations 
and the death of common sense that has swept across America and 
especially swept across the bureaucracies in Washington, DC. For too 
long we have had unelected bureaucrats in Washington, DC, passing rules 
and regulations that have tied the hands of Americans, small American 
business people and property owners.
  Mr. Speaker, this is a good, commonsense first step in moving in that 
direction, and I certainly look forward to supporting it, and I think 
the chairman for bringing this bill to the floor.
  Mr. SCOTT. Mr. Speaker, I yield 4 minutes to the gentleman from Texas 
[Mr. Doggett].
  Mr. DOGGETT. Mr. Speaker, I must say that I disagree with the 
gentleman yielding to me and some of my other Democratic colleagues 
concerning the appropriateness of having habeas corpus and regulatory 
reform in this debt measure because I cannot think of two more fitting 
examples of what the Republican Party is doing than with these two 
measures. See, habeas corpus in Latin means, ``You have the body,'' and 
when the American people have the body of this Republican Party and 
what they are doing to America, they are going to see it for all that 
it is. They are going to know that they can take the stiffest old wire 
brush, and they cannot scrub the dirtiness and the ugliness of what 
they are doing to this country out with that wire brush.
  And what about regulatory reform? Mr. Speaker, what they believe in 
is regulatory short circuit. They have got it short-circuited to the 
point that we do not need a committee system in the Congress, we do not 
need to involve the America people in the decisions of the Congress. 
No, we can have regulatory and lawmaking reform; just get a cluster of 
the strongest, most powerful lobbyists in the country to get together 
in the closet with the Speaker. He will take a little time out of his 
campaign to be President of the United States, a campaign based on the 
theory that the American people want someone meaner than Phil Gramm as 
a candidate, and the Speaker will take a little time away from signing 
book autographs and running for President, and he will sit down, and he 
will resolve the lawmaking and the regulation of the United States in 
exactly the same way that he cut Medicare.
  Mr. Speaker, we have what is referred to as a Christmas party 
offering special deals to various lobby groups to get what they want.
  It is appropriate that the gentleman from Pennsylvania would begin 
the presentation on this amendment by citing letters from two lobby 
groups. Who else would this group that has contracted out the Contract 
on America, subcontracted it, if my colleagues will, to the lobby to 
write the bills, to use the committee computers, to turn to the 
lobbyists during the committee hearings to provide all the answers? Of 
course, they start with letters from lobbyists saying that this measure 
is OK.
  But what about the American people? Why do they not have a say in 
this process? Why shortcut it in this fashion when even the Members of 
this body do not get to see the bills that are passed?
  I am not just talking about the Democrats. We could not find 10 
Republicans in this entire body that had the slightest idea what is in 
this amendment. It is not even the same amendment that was presented in 
the sneak attack last night.
  See, the problem is that our Republican colleagues are so used to 
having a party that is exclusive, that does not include people in the 
decision-making process that they decide to use a sneak attack instead 
of including the people in a process of decision making with committee 
hearings, with people coming in, hearing what good science is from the 
experts, instead of relying only on the lobbyists.


                Announcement by the Speaker pro tempore

  The SPEAKER pro tempore (Mr. Hobson). The Chair would admonish all 
Members that they are not to make personal references to Members of the 
other body.
  Mr. DOGGETT. Mr. Speaker, we had a chance to look at the specifics of 
this regulatory reform measure earlier in the year, and one of the 
things we found is that it required, before any new rule to protect the 
public health, and welfare, and safety of the people of the United 
States could be adopted, it had to be peer reviewed, and we were not 
talking about a peer review of people of science. We were really 
talking about a peer review that could include lobbyists, the same kind 
of people that cluster up with the Speaker in the back room to write 
legislation like this, and they would not accept an amendment to delete 
the power of lobbyists to review these pieces of legislation and to 
roadblock them to gum up the process, and that same language, I am 
advised, is buried somewhere in these pages, is mixed in there at 
present, so that we will rely on the tobacco companies to decide the 
future of any regulation concerning tobacco in this country. We will 
rely on the polluters to decide on any regulation about water and air 
purity.
  Yes, this is in this particular amendment simply a question of 
whether we want to have unilateral disarmament of the ability to 
protect the health and welfare of the people of the United States to 
assure that we have water we can drink and air that we can breathe, 
whether we want to do that or whether we want to involve the people in 
a reasonable process that is not some back-room deal to provide in the 
dead of night one amendment and then come out here on the floor without 
any hearing, without any input, and do another.
  See, I think the problem is basically that some of our Republican 
colleagues confuse arrogance of power with leadership. They have not 
given us much of the latter. They have given us little else than 
arrogance and power.
  Mr. WALKER. Mr. Speaker, always good to get the liberal extremist 
point of view brought to bear.
  Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Indiana 
[Mr. McIntosh].
  Mr. McINTOSH. Mr. Speaker, I commend my colleagues for their 
excellent job, along with the gentleman from Virginia [Mr. Bliley], in 
bringing this forward to the House floor and letting us complete one of 
the promises we made the American people in the Contract With America. 
Before I mention some of the substantive part of this, I would like to 
point out to Members that this vote is now a key vote for various 
organizations who represent working men and women across this country:
  The National Federation of Independent Business, the U.S. Chamber of 
Commerce, the National Restaurant Association, Americans for Tax 
Reform, National Association of Home Builders, National American 
Wholesale Grocers Association have all key-voted this very important 
regulatory relief bill.
  When my colleagues stop to think of it, it is particularly 
appropriate that we have this in the debt-ceiling extension. The 
average family pays $2,300 in interest on the American debt each year. 
They pay $6,000 in the costs of Federal regulations, 2\1/2\ times what 
they pay for the interest on the debt. 

[[Page H 12061]]
This bill will help to pull back the regulatory debt that the Federal 
Government has placed on the American working family for the last 40 
years.
  Mr. Speaker, this is vitally important for our competitiveness. It 
will help keep jobs here in America, and it will allow us to go back 
home and tell workers we have lifted the redtape that has sent their 
jobs overseas to China, to Mexico, and to around the world because they 
do not impose that type of regulatory burdens on companies. We are 
going to be competitive and create good jobs right here at home in 
America.
  Mr. SCOTT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, we previously heard about the deficit. We can remind 
everyone that most of the national debt was run up during the Reagan 
and Bush administrations. Congress actually cut most of their budgets.
  Mr. Speaker, this is not the House-passed regulatory reform bill. It 
has not been negotiated by the Senate. The Senate has never passed the 
regulatory reform bill, and some Senate Republicans will object to its 
inclusion in the debt bill.
  This is a 122-page amendment which was written last night without 
consultation with the Senate or House Democrats. It overrides existing 
laws to protect public health, safety, and environment. It will lead to 
regulatory gridlock and a litigation explosion and will cripple the 
cleanup efforts at our military bases.
  We have had a bad process, it is a bad amendment. Please vote no on 
this amendment.
  Mr. Walker. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, we have had an interesting debate, and obviously it is 
very difficult to debate the substance for the other side because all 
they want to do is talk about process. But that is fine. As my 
colleagues know, that is the way in which the process goes forward I 
guess. But the bottom line is that what we ought to be talking about is 
how we balance the budget and get the burden of regulations off the 
back of the American people.
  Mr. Speaker, the most important thing this Congress can do is to 
balance the budget so we can stop having to keep heaping even more 
Federal debt on our children. To accomplish this paramount goal, we 
have to cut unnecessary spending and costs. This goes for the 
competitiveness of the private sector as well, which is what this 
amendment addresses.
  Mr. Speaker, in an era of tough budget realities which the bill 
before us brings home to roost, policy-makers need to make choices and 
set priorities--to concentrate scarce dollars where they will do the 
most good, and analyze alternatives to achieve the goal of public 
safety at the lowest possible cost. At this critical point in our 
effort to change the way Washington works, we believe that we have a 
unique opportunity to move this consensus reform right now. After 10 
years of lip service by the Democrat congresses before this to the 
whole question of U.S. competitiveness, but no action except for even 
more Federal spending in the form of industrial policy subsidies, we 
now have the chance to do something really big. We now have a chance to 
speak to the 450 to 800 billion dollars' worth of regulations imposed 
upon the economy every year.
  President Clinton says he has to raise the debt ceiling. Well, at the 
same time we can give him the opportunity to remove the need for so 
much wasteful Federal corporate welfare spending which combats the 
unnecessary costs of unjustified regulations. This landmark 
competitiveness initiative, will be worth more than about 100 Advanced 
Technology programs or other Government spending programs.
  What we can begin to do is deal with the issue of regulation. Here is 
that chance. Here is an opportunity to use a consensus approach to 
begin to wipe out the regulations that so far undermine the economy by 
asking the Members of this body to do as they have done before, support 
regulatory reform.
  Vote for the Walker-Bliley amendment.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the amendment offered by 
the gentleman from Pennsylvania [Mr. Walker].
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. WALKER. Mr. Chairman, on that demand the yeas and nays.
  The yeas and nays were ordered.
  The vote was taken by electronic device, and there were--yeas 257, 
nays 165, not voting 10, as follows:

                             [Roll No. 779]

                               YEAS--257

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

                               NAYS--165

     Abercrombie
     Ackerman
     Andrews
     Baldacci
     Barrett (WI)
     Becerra
     Beilenson
     Bentsen
     Berman
     Boehlert
     Bonior
     Borski
     Boucher
     Brown (CA)
     Brown (FL)
     Brown (OH)
     Bryant (TX)
     Cardin
     Clay
     Clayton
     Clyburn
     Coleman
     Collins (IL)
     Collins (MI)
     Conyers
     Costello
     Coyne
     de la Garza
     DeFazio
     DeLauro
     Dellums
     Deutsch
     Dicks
     Dingell
     Dixon
     Doggett
     Doyle
     Durbin
     Engel
     Eshoo
     Evans
     Farr
     Fattah
     Filner
     Flake
     Foglietta
     Forbes
     Ford
     Frank (MA)
     Frost
     Furse
     Gejdenson
     Gephardt
     Gibbons
     Gonzalez
     Green
     Gutierrez
     Hall (OH)
     Hamilton
     Harman
     Hastings (FL)
     Hefner
     Hilliard
     Hinchey
     Holden
     Hoyer
     Jackson-Lee
     Jefferson
     Johnson (CT)
     Johnson (SD)
     Johnson, E. B.
     Johnston
     Kanjorski
     Kaptur
     Kennedy (MA)
     Kennedy (RI)
     Kennelly
     Kildee
     Kleczka
     Klink
     LaFalce
     Lantos
     Levin
     Lewis (GA)
     Lipinski
     Lofgren
     Lowey
     Luther
     Maloney
     Manton
     Markey
     Martinez
     Mascara
     Matsui
     McCarthy
     McDermott
     McHale
     McKinney
     McNulty
     Meehan
     Meek
     Menendez
     Mfume
     Miller (CA)
     Mink
     Moakley
     Mollohan
     Moran
     Murtha
     Nadler
     Neal
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pastor
     Payne (NJ)
     Pelosi
     Pomeroy
     Poshard
     Rahall
     Rangel
     Reed
     Richardson
     Rivers
     Roemer
     Roukema
     Roybal-Allard
     Sabo
     Sanders
     Sawyer
     Schiff
     Schroeder
     Schumer

[[Page H 12062]]

     Scott
     Serrano
     Shays
     Skaggs
     Slaughter
     Smith (MI)
     Spratt
     Stark
     Stokes
     Stupak
     Tejeda
     Thompson
     Torres
     Torricelli
     Towns
     Velazquez
     Vento
     Visclosky
     Volkmer
     Ward
     Waters
     Watt (NC)
     Waxman
     Williams
     Wilson
     Wise
     Woolsey
     Wyden
     Wynn
     Yates

                             NOT VOTING--10

     Bono
     Chapman
     Fields (LA)
     Lewis (CA)
     Owens
     Peterson (FL)
     Studds
     Thornton
     Tucker
     Weldon (PA)

                              {time}  1634

  Mr. HILLIARD and Mr. McNULTY changed their vote from ``yea'' to 
``nay.''
  Messrs. BAESLER, DOOLEY, and ROSE changed their vote from ``nay'' to 
``yea.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.


                          personal explanation

  Mr. BONO. Mr. Speaker, on rollcall No. 779, I was unavoidably 
detained at a White House meeting.
  Had I been present, I would have voted ``yea.''
  The SPEAKER pro tempore (Mr. Hobson). Pursuant to the rule, the 
previous question is ordered on the bill, as amended.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


report on resolution providing for consideration of h.r. 2539, the icc 
                        termination act of 1995

  Mr. Goss, from the Committee on Rules, submitted a privileged report 
(Rept. No. 104-329) on the resolution (H. Res. 259), providing for the 
consideration of the bill (H.R. 2539) to abolish the Interstate 
Commerce Commission, to amend subtitle IV of title 49, United States 
Code, to reform economic regulation of transportation, and for other 
purposes, which was referred to the House Calendar and ordered to be 
printed.


report on resolution waiving provisions of clause 4(b) of house rule xi 
    against consideration of certain resolutions reported from the 
                           committee on rules

  Mr. Goss, from the Committee on Rules, submitted a privileged report 
(Rept. No. 104-330) on the resolution (H. Res. 260), waiving a 
requirement of clause 4(b) of rule XI with respect to consideration of 
certain resolutions reported from the Committee on Rules, which was 
referred to the House Calendar and ordered to be printed.


          motion to recommit offered by mr. payne of virginia

  Mr. GIBBONS. Mr. Speaker, under the rule, I am the minority leader's 
designee to present the motion to recommit.
  Mr. Speaker, I offer a motion to recommit. I am opposed to the bill 
and I ask unanimous consent that the gentleman from Virginia [Mr. 
Payne], the author of the amendment, be allowed to present it, and to 
control all of the time and yield time.
  The SPEAKER pro tempore (Mr. Hobson). Is there objection to the 
request of the gentleman from Florida?
  There was no objection.
  The SPEAKER pro tempore. Is the gentleman from Virginia opposed to 
the bill?
  Mr. PAYNE of Virginia. I am opposed to the bill in its present form.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Payne of Virginia moves to recommit the bill H.R. 2586 
     to the Committee on Ways and Means with instructions to 
     report the same back to the House forthwith with an 
     amendment:
       Strile all after the enacting clause and insert the 
     following:

     SECTION 1. TEMPORARY INCREASE IN PUBLIC DEBT LIMIT.

       During the period beginning on the date of the enactment of 
     this Act and ending on the later of--
       (1) December 12, 1995, or
       (2) the 30th day after the date on which a budget 
     reconciliation bill is presented to the President for his 
     signature,

     the public debt limit set forth in subsection (b) of section 
     3101 of title 31, United States Code, shall be temporarily 
     increased to $4,967,000,000,000, or, if greater, the amount 
     reasonably necessary to meet all current spending 
     requirements of the United States (and to ensure full 
     investment of amounts credited to trust funds or similar 
     accounts as required by law) through such period.
       Amend the title by striking ``, and for other purposes''.

  The SPEAKER pro tempore. The gentleman from Virginia [Mr. Payne] is 
recognized for 5 minutes on his motion to recommit.
  Mr. PAYNE of Virginia. Mr. Speaker, this motion to recommit is very 
simple: it alters the debt limit to provide for a 30-day time period 
from the time a reconciliation bill hits the President's desk until we 
reach the debt limit. These 30 days will allow us to work in a 
bipartisan way to develop a plan that will balance the Federal budget 
as well as avoid a default by the Federal Government.
  This is also a clean motion.
  This motion raises the debt limit in the same manner we have raised 
the debt limit in the past, for short periods of time, for both 
Democratic and Republican Presidents. Without partisan riders. Without 
putting the country in danger of default. This motion to recommit 
allows us to continue this bipartisan tradition.
  The motion to recommit is identical to the amendment offered at the 
Rules Committee last night. The Rules Committee rejected this 
commonsense proposal in favor of one weighed down by partisan 
distractions. The motion to recommit brings the debate back to where it 
ought to be: How do we protect the creditworthiness of the United 
States of America while we work to balance the Federal budget.
  A balanced budget is a goal that has bipartisan backing. And the 
motion to recommit will give us the time we need to do it. This 
proposal is fair, it is rational, and it is about doing what the 
American people sent us here to do. Thirty days from the time the 
reconciliation bill hits the President's desk is not too long when we 
are talking about a credit record our country has built over 200 years. 
And it's not too long to consider how best to balance our budget and 
put our fiscal house in order for ourselves and for future generations.
  I urge my colleagues to vote for the motion to recommit.
  Mr. VOLKMER. Mr. Chairman, will the gentleman yield?
  Mr. PAYNE of Virginia. I yield to the gentleman from Missouri.
  Mr. VOLKMER. Mr. Speaker, I wish to commend the gentleman for this 
motion. It appears to me that unless this motion is adopted, this 
House, along with the Senate, is headed for a train wreck, deliberately 
led by Speaker Gingrich and the Republican majority, to try to force 
the President to do something when they know the President will not do 
it. They are not going to be able to shove it down the President's 
throat, and he, being a reasonable person, is going to request that 
they do exactly as you propose.

                              {time}  1645

  If we want to keep the country on a good course of economy that we 
need to have through this fall and going into next year, we do not need 
this type of activity that is envisioned by the original bill. That 
will lead to the train wreck that is going to occur, the default that 
is going to occur in the economy of this country.
  I want to commend highly the gentleman for his thoughtfulness and 
willingness in order to work this whole thing out. I know the gentleman 
strongly believes in a balanced budget, has voted for a balanced budget 
and wants to get there, just like I do. I want to commend the gentleman 
for using a little sense in this whole activity.
  Mr. PAYNE of Virginia. I thank the gentleman from Missouri.
  Mr. Speaker, I yield the balance of my time to the gentleman from 
Maryland [Mr. Cardin].
  Mr. CARDIN. Mr. Speaker, I thank the gentleman from Virginia for 
yielding.
  Mr. Speaker, the gentleman's motion is an effort for us to work in a 
bipartisan manner on dealing with this budget.
  Let me explain this. It is the preference of the President, it is my 
preference, that we have a long-term extension of the debt ceiling. 
That is not to be the case. The Republicans want to have leverage on 
the debt ceiling in dealing with the budget.
  I think that is wrong. I do not think we should jeopardize the credit 
of this Nation. I do not think we should jeopardize interest rates that 
consumers have to pay. But if we are going to 

[[Page H 12063]]
have a short-term extension, it should be one that both Democrats and 
Republicans can support.
  It is not the President's fault that we are here tonight asking for 
an extension of the debt ceiling. It is the failure of the leadership 
to pass the appropriation bills, to pass the budget by the October 1 
deadline. We are well past that.
  Democrats are willing to work with Republicans on a debt extension so 
we do not jeopardize the credit of the Nation, but let us make it a 
clean extension. Let us not put these extra issues in there to make it 
impossible for Democrats to support and guarantee a Presidential veto. 
It is our fault, the Republican leadership's fault, for not meeting the 
deadlines. Give us a debt extension that Democrats and Republicans can 
support so we do not run the risk of the credit of this Nation. That is 
the choice we have.
  The gentleman's motion will extend the debt ceiling until we pass the 
budget bills and have sent them to the President. It is a clean 
extension.
  I urge my colleagues in a bipartisan manner to support the motion.
  Mr. ARCHER. Mr. Speaker, I rise in opposition to the motion to 
recommit.
  The SPEAKER pro tempore (Mr. Hobson). The gentleman from Texas [Mr. 
Archer] is recognized for 5 minutes.
  Mr. ARCHER. Mr Speaker, this body has just heard what on the surface 
appears to be a plausible, responsible colloquy by two members of the 
Committee on Ways and Means who are, I believe, very genuine, very 
responsible people
  The difficulty with it is that it opens the door for an unlimited 
period of time for the President to stall, to make excuses and to fail 
to bargain in a responsible, genuine way for a balanced budget in 7 
years, based on CBO numbers, without new taxes. That is what we are 
about. That is what the American people want by an overwhelming margin, 
and that is what we have been working to all year, with a President who 
at first said we do not need a balanced budget, we do not need one at 
all, and defended that position and then reluctantly came to the dance 
floor and said, well, maybe 10 years is OK, but not by CBO numbers.
  By CBO numbers, his so-called balanced budget never balances. It is 
$200 billion a year in deficit as far as the eye can see. We have had a 
whole year for the President to come forward and do what the American 
people want.
  The motion to recommit would create a debt ceiling provision that 
gives a blank check to the Treasury to increase the debt to whatever 
level it wishes. That is not what the American people want. It permits 
the Treasury to raid the retirement trust funds of this country, so 
vital to beneficiaries who depend upon them, as a means of keeping the 
Government afloat, instead of letting us go through an orderly 
management of debt, which our bill permits, until December 12.

  We have had excuses, excuses and delays, We cannot wait, to go into 
January and February and March, to resolve a balanced budget. That is 
what this motion to recommit would do, because it eliminates the 
protection of the trust funds from invasion or incursion, and it would 
most certainly be used by the Treasury because they are right now 
planning to begin to do it next week when they cannot meet our 
obligations on November 15 if this bill does not pass.
  Our plan will permit the orderly management of the debt next week and 
until December 12, but, yes, make no question about it, that on 
December 12 we mean business. It is a drop-dead date, and it is 
adequate time for the President to come forward with his hand of 
negotiation.
  We all know the pieces of this puzzle. We have talked about them over 
and over again this year. It is not difficult, knowing the pieces of 
the puzzle, for the President to come forward and negotiate with us in 
good faith and resolve this by December 12.
  We also know that in every democracy you do not make tough decisions 
until you face a cliff or a stone wall. It is true in the legislatures. 
It is true here.
  Your motion to recommit, I would say to the gentleman from Virginia, 
leaves an open door for the President indefinitely to put off the 
decisionmaking to get to a balanced budget as he raids and invades the 
trust funds of this Nation.
  That is what will begin next week if he vetoes this bill, and they 
plan to do it, I am told, and it will, under your proposal, continue to 
be an option beyond December, January, February, March. That is not in 
the best interests of this country. It is time now to set a date, to 
stick to it, and to get this balanced budget passed in 7 years, by CBO 
numbers, without tax increases, and this is the down payment on that. 
This is the first step.
  Vote against the motion to recommit and for the bill.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. GIBBONS. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The vote was taken by electronic device, and there were--yeas 186, 
nays 235, not voting 11, as follows:

                             [Roll No. 780]

                               YEAS--186

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

                               NAYS--235

     Allard
     Archer
     Armey
     Bachus
     Baker (CA)
     Baker (LA)
     Ballenger
     Barr
     Barrett (NE)
     Bartlett
     Barton
     Bass
     Bateman
     Bereuter
     Bilbray
     Bilirakis
     Bliley
     Blute
     Boehlert
     Boehner
     Bonilla
     Bono
     Brewster
     Brownback
     Bryant (TN)
     Bunn
     Bunning
     Burr
     Burton
     Buyer
     Callahan
     Calvert
     Camp
     Canady
     Castle
     Chabot
     Chambliss
     Chenoweth
     Christensen
     Chrysler
     Clinger
     Coble
     Coburn
     Collins (GA)
     Combest
     Cooley
     Cox
     Crane
     Crapo
     Cremeans
     Cubin
     Cunningham
     Davis
     Deal
     DeLay
     Diaz-Balart
     Doolittle
     Dornan
     Dreier
     Duncan
     Dunn
     Ehlers
     Ehrlich
     Emerson
     English
     Ensign
     Everett
     Ewing
     Fawell
     Fields (TX)
     Flanagan
     Foley
     Forbes
     Fowler
     Fox
     Franks (CT)
     Franks (NJ)
     Frelinghuysen
     Frisa
     Funderburk
     Gallegly
     Ganske
     Gekas
     Gilchrest
     Gillmor
     Gilman
     Goodlatte
     Goodling
     Goss
     Graham
     Greenwood
     Gunderson
     Gutknecht
     Hancock
     Hansen
     Hastert
     Hastings (WA)
     Hayworth
     Hefley
     Heineman
     Herger
     Hilleary
     Hobson
     Hoekstra
     Hoke
     Horn
     Hostettler
     Houghton
     Hunter
     Hutchinson
     Hyde
     Inglis
     Istook
     Johnson (CT)
     Johnson, Sam
     Jones
     Kasich
     Kelly
     Kim
     King
     Kingston
     Klug
     Knollenberg
     Kolbe
     LaHood
     Largent

[[Page H 12064]]

     Latham
     LaTourette
     Laughlin
     Lazio
     Leach
     Lewis (KY)
     Lightfoot
     Linder
     Livingston
     LoBiondo
     Longley
     Lucas
     Manzullo
     Martini
     McCollum
     McCrery
     McDade
     McHugh
     McInnis
     McIntosh
     McKeon
     Metcalf
     Meyers
     Mica
     Miller (FL)
     Molinari
     Moorhead
     Morella
     Myers
     Myrick
     Nethercutt
     Neumann
     Ney
     Norwood
     Nussle
     Oxley
     Packard
     Parker
     Paxon
     Petri
     Pickett
     Pombo
     Porter
     Portman
     Pryce
     Quillen
     Quinn
     Radanovich
     Ramstad
     Regula
     Riggs
     Roberts
     Roemer
     Rogers
     Rohrabacher
     Ros-Lehtinen
     Roth
     Roukema
     Royce
     Salmon
     Sanford
     Saxton
     Scarborough
     Schaefer
     Schiff
     Seastrand
     Sensenbrenner
     Shadegg
     Shaw
     Shays
     Shuster
     Skeen
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Solomon
     Souder
     Spence
     Stearns
     Stockman
     Stump
     Talent
     Tate
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Thomas
     Thornberry
     Tiahrt
     Torkildsen
     Traficant
     Upton
     Vucanovich
     Waldholtz
     Walker
     Walsh
     Wamp
     Watts (OK)
     Weldon (FL)
     Weller
     White
     Whitfield
     Wicker
     Wolf
     Young (AK)
     Young (FL)
     Zeliff
     Zimmer

                             NOT VOTING--11

     Chapman
     Dickey
     Fields (LA)
     Lewis (CA)
     Owens
     Peterson (FL)
     Studds
     Thornton
     Tucker
     Waxman
     Weldon (PA)

                              {time}  1712

  The Clerk announced the following pair:
  On this vote:

       Mr. Chapman for, with Mr. Lewis of California against.

  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore (Mr. Hobson). The question is on the passage 
of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             recorded vote

  Mr. ARCHER. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 227, 
noes 194, not voting 12, as follows:

                             [Roll No. 781]

                               AYES--227

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

                               NOES--194

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

                             NOT VOTING--12

     Chapman
     Doggett
     Fields (LA)
     Lewis (CA)
     Owens
     Peterson (FL)
     Studds
     Thornton
     Torkildsen
     Tucker
     Waxman
     Weldon (PA)

                              {time}  1730

  The Clerk announced the following pair:
  On this vote:

       Mr. Lewis of California for, with Mr. Chapman against.

  Mr. DORNAN changed his vote from ``no'' to ``aye''.
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________