[Congressional Record Volume 141, Number 194 (Thursday, December 7, 1995)]
[Senate]
[Pages S18232-S18244]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            SUBMISSION OF CONCURRENT AND SENATE RESOLUTIONS

  The following concurrent resolutions and Senate resolutions were 
read, and referred (or acted upon), as indicated:

           By Mr. LOTT (for himself and Mr. McCain):
       S. Res. 198. A resolution to make certain technical changes 
     to S. Res. 158; considered and agreed to.
     
[[Page S 18233]]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. BURNS (for himself, Mr. Craig, Mr. Reid, Mr. Thomas, Mr. 
        Bryan, and Mr. Inhofe):
  S. 1453. A bill to prohibit the regulation by the Secretary of Health 
and Human Services and the Commissioner of Food and Drugs of any 
activities or sponsors or sponsorship programs connected with, or any 
advertising used or purchased by, the Professional Rodeo Cowboy 
Association, its agents or affiliates, or any other professional rodeo 
association, and for other purposes; to the Committee on Labor and 
Human Resources.


                     the rodeo freedom act of 1995

  Mr. BURNS. Mr. President, I rise today with the support of Senators 
Reid, Craig, Thomas, Bryan, and Inhofe, to introduce a bill that is 
vitally important to the heritage of the Western United States, the 
sport of rodeo. The Rodeo Freedom Act of 1995 is a bill that will 
protect the interests of the sport of rodeo and the many small and 
large communities that host rodeos throughout the year.
  Rodeo is the one true American sport--a sporting event watched by 
millions of people yearly. It's a unique sporting event that tests the 
skills of both man and beast. Rodeo is a sport that traces its 
beginnings to contests held between ranches in the West during the 
latter part of the last century. Cowboys tested their skills in 
breaking wild horses and the everyday jobs of roping and doctoring the 
animals of the ranch owner's herds. Rodeo is one of the few sports 
which early on allowed women to compete and to share in the prize money 
that is offered. Today thousands of men, women, and children hold 
dreams of winning a world championship buckle awarded to the top 
performer in each event.
  In recent months the continued good fortune of the sport of rodeo has 
been threatened by the administration, through the transfer of 
authority for the control of products that sponsor both professional 
and local rodeos. The President has taken steps to give control to the 
Food and Drug Administration of the products that sponsor rodeo events 
throughout the Nation. This agency has already stated that many of the 
products that sponsor both professional and amateur sports will have to 
give up their right to advertise and support these events. This move 
could send many entertainment events, like rodeo, to an early grave. 
The cost to many of the small communities that host the hundreds of 
rodeos around the country could be the end of their involvement.
  This is just one of the latest moves that have been made to regulate 
the manner in which sporting events earn the money necessary to provide 
top entertainment. The restrictions the Government is seeking to impose 
would limit, if not destroy, the long standing relationship between 
rodeo and its many sponsors. This would threaten the economic viability 
of an important recreational and economic activity in Montana and 
throughout the Western United States.
  I doubt the agencies involved took into account the economic impact 
that their decisions would have on small rural communities. In many of 
the smaller communities in Montana, and I am sure in many Western 
States, the residents eagerly anticipate the one annual event of the 
year, the rodeo. The contestants come in from around the country, and 
for that matter the world, to compete. Tourists traveling through the 
area many times extend their stay to catch the uniquely American sport.
  This event may bring thousands of dollars into an already suffering 
economy. In one particular city in Montana, an annual rodeo will mean 
the addition of over $2 million to the local economy.
  The additional money that sponsors provide to local rodeos makes 
rodeo one of the best family entertainment bargains today. Without the 
assistance of these sponsors, rodeo, if it could even continue, would 
need to bring the price of its tickets up to a level that would 
preclude many families from the one entertainment event they wait for 
annually.
  This is another example of Big Government tossing its weight around. 
The enforcement of the sponsorship should be controlled at the local 
level by the State governments, most of which already have laws 
limiting the distribution of products. If we don't call the Federal 
Government on this one, What will be next?
  This is not a product issue. It is an issue of personal freedom, and 
the right of westerners to enjoy our recreational pursuits. This 
legislation is for all competitors, whether they are weekend cowboys or 
top rodeo stars. Their participation in the sport of rodeo helps to 
ensure the traditions and heritage of the West. The popularity of 
western movies and rodeo demonstrates the fascination that people the 
world over hold for the cowboy tradition.
  In closing I would like to commend all the competitors that have 
struggled so hard in rodeos this year. This week marks the culmination 
of all that effort, as 15 of the top cowboys and cowgirls meet in Las 
Vegas, NV to compete in the National Finals Rodeo. By this Sunday night 
the world champions will be determined in the following events: 
Bareback and saddle bronc and bull riding, team roping, calf roping, 
steer wrestling, and barrel racing. I tip my hat to all the competitors 
and wish them a safe and good ride. And using a term known among the 
cowboy circles I say ``Bare Down and Cowboy up.''
  I urge my colleagues to join with me in protecting the future of 
rodeo.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1453

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Rodeo Freedom Act of 1995''.

     SEC. 2. FINDINGS.

       The Congress finds that--
       (1) professional rodeo is an important and popular 
     spectator sport that is attended by an estimated 18,000,000 
     American adults annually across the United States and 
     particularly in the Western and Southwestern regions;
       (2) in the Western and Southwestern regions, the sport of 
     rodeo has a long and interesting history and therefore, is of 
     great cultural and social significance to such States;
       (3) the Professional Rodeo Cowboy Association has 10,000 
     members and sponsors approximately 800 rodeos in 46 States 
     every year;
       (4) because of its cultural associations with the Western 
     and Southwestern regions of the United States, the rodeo is 
     an important attraction for domestic and foreign tourism to 
     those regions;
       (5) the professional rodeo and the support industries 
     associated with professional rodeo generate substantial 
     economic activity in host communities and are significant 
     sources of income, economic security, employment, recreation, 
     and enjoyment for Americans;
       (6) the Professional Rodeo Cowboy Association enjoys the 
     freedom to choose the sponsors or sponsorship programs 
     associated with the rodeos of the association;
       (7) the sponsors or sponsorship programs associated with 
     the rodeos of the Professional Rodeo Cowboy Association 
     assist in sustaining the sport of rodeo and in making such 
     sport affordable and accessible to millions of adult rodeo 
     fans across America;
       (8) despite the enjoyment that millions of Americans derive 
     from watching rodeo events, and the importance of such events 
     to the economies of the Western and Southwestern regions and 
     of the United States, Federal agencies other than the Federal 
     Trade Commission have proposed restrictions upon the 
     activities of sponsors, sponsorship programs, or advertising 
     connected with rodeo events; and
       (9) such restrictions, if adopted will--
       (A) jeopardize the continued financial viability of 
     professional rodeos;
       (B) result in a considerable financial loss to tourism and 
     other related industries;
       (C) interfere with the enjoyment of rodeo events by 
     millions of American adults who attend rodeos annually; and
       (D) impose unconstitutional limitations on both commercial 
     speech and the freedom of association of the membership of 
     the Professional Rodeo Cowboys Association.

     SEC. 3. PROHIBITION.

       The Secretary of Health and Human Services and the 
     Commissioner of Food and Drugs shall have no authority under 
     the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et 
     seq.) to regulate--
       (1) activities of sponsors or sponsorship programs 
     connected with--
       (A) the Professional Rodeo Cowboy Association or its 
     activities or events; or
       (B) any other professional rodeo association or the agents 
     or affiliates of such association or the activities or events 
     of such association, agents, or affiliates; or
       (2) advertising that is used or purchased by, or that is in 
     connection with--
     
[[Page S 18234]]

       (A) the Professional Rodeo Cowboy Association or its 
     activities or events; or
       (B) any other professional rodeo association or the agents 
     or affiliates of such association or the activities or events 
     of such association, agents, or affiliates.

     SEC. 4. EFFECTIVE DATE.

       This Act shall take effect as if enacted on August 10, 
     1995.
                                 ______

      By Mr. LAUTENBERG:
  S. 1458. A bill to amend the provisions of title 35, United States 
Code, to establish the Patent and Trademark Corporation, and for other 
purposes; to the Committee on the Judiciary.


           THE PATENT AND TRADEMARK OFFICE REFORM ACT OF 1995

 Mr. LAUTENBERG. Mr. President, today I am introducing 
legislation, the Patent and Trademark Office Reform Act of 1995, that 
would establish the Patent and Trademark Office as a Government 
corporation and make significant improvements in its management.
  These changes will free the Office from restrictive laws that have 
prevented it from becoming as efficient as its users and our economy 
demand. Applications will be processed faster, top talent will be hired 
and retained, necessary state-of-the-art equipment will be purchased, 
and office space will be acquired or leased at more favorable terms.
  Mr. President, the Patent and Trademark Office is in the business of 
examining and granting patents and registering trademarks, a function 
important enough to warrant mention in Article 1 of our Constitution. 
The protection of innovation provided by the PTO has helped create 
millions of jobs and is one of the reasons our country is so 
competitive and the most productive in the world.
  The services and products provided by the PTO are paid for entirely 
by user fees. Last year, the PTO received more than 185,000 patent 
applications and 155,000 trademark applications. PTO projects steady 
increases in both types of applications into the next century.
  Unfortunately, the processing and approval of applications has often 
been delayed. These delays are due in part to a shortage of examiners 
and out-of-date equipment. As a result of these delays, inventors are 
being denied protection of the fruits of their labor, and further 
innovation is thus postponed.
  My intent in offering this legislation is to enhance the PTO's 
ability to process and grant patents and register trademarks in a 
timely fashion. The legislation responds to various management problems 
now facing the Office.
  First, the Office is now burdened with unnecessary personnel 
regulations. As a component of the Department of Commerce, the PTO is 
subject to the same personnel ceilings as other Commerce programs. 
While such ceilings may make sense for other agencies or departments, 
they do not for the PTO. If the PTO is prevented from making necessary 
hires to keep up with the increase in applications, productivity will 
decline and potential revenues will be lost.
  A large amount of the work performed by the PTO requires specialized 
skills. The application of the Government-wide compensation and 
classification systems has constrained PTO's ability to hire and 
maintain the best talent. For example, the classification system is too 
rigid to adequately accommodate many of the PTO's unique positions. The 
resulting misclassifications can mean lower positions, making it more 
difficult to attract experts from the private sector. Compounding this 
problem is the General Schedule, restrictions on promotions, and the 
inability of the PTO to conduct its own personnel examinations.
  The PTO also has had serious procurement problems. The Office is 
subject to various restrictions on its procurement activities, as 
provided in the Federal Property and Administrative Services Act, the 
Brooks Act, and the Public Buildings Act. These laws have forced the 
PTO to endure lengthy and expensive procurement delays. For example, a 
recent computer procurement took 2 years to complete. When the PTO made 
the request, the technology contained in this procurement was state of 
the art. However, by the time the PTO finally received the equipment, 
technology in this area had advanced significantly.
  It has been PTO's experience that the process of procuring items in 
the $1 million range averages 12 to 18 months at a cost of $100,000 to 
$200,000. The private sector accomplishes such procurements in a few 
months at a fraction of the cost.
  Another problem is that the PTO is spread throughout 15 office 
buildings in Crystal City, VA, which are leased through the General 
Services Administration. This scattering of personnel and operations is 
not only inconvenient, it is inefficient. Moreover, three times in as 
many years, GSA appraised this space at amounts not supported by the 
market, and charged the PTO too much. Congressional action was 
necessary in all instances, resulting in a savings of $22.3 million. 
When the PTO's lease expires in 1996, it will require about one-half 
million square feet more than it currently has. PTO has been 
negotiating with GSA and OMB for almost 6 years trying to reach a 
resolution to this situation, but to no avail.
  Mr. President, this bill is one more step to reinvent our Government, 
an important effort championed by the Clinton administration. My 
legislation would enable the PTO to be run more like a business. 
However, unlike a private-sector enterprise, PTO's employees would 
remain Federal employees and the Office would remain in the Department 
of Commerce. This is an important distinction because the granting of 
patents and registering of trademarks is a necessary Government 
function and it would be imprudent to insulate this responsibility in 
an unaccountable autonomous body.
  Under the bill, the Commissioner of the Patent and Trademark 
Corporation, or the PTC, will report to the Secretary of Commerce for 
trademark and patent policy matters only. The PTC will be free from 
departmental meddling in the management of its day-to-day activities, 
such as how many patent examiners need to be hired, which computer 
system the PTC should buy, and how many buildings the PTC should 
occupy. This firewall addresses many of the criticisms leveled at the 
PTO over the years, but ensures that attention to intellectual property 
policy matters remains at the Cabinet level.
  Mr. President, let me describe briefly what my bill will do. The 
Commissioner of the Patent and Trademark Corporation shall, with the 
assistance of two deputies, manage the 5,000-plus employees and run 
this $600-plus million entity. They will be able to do this without the 
constraints of the Brooks Act, the Public Buildings Act, and the 
Federal Property and Administrative Services Act. Like the private 
sector, the new corporation will be able to acquire computers, office 
space, and furniture in a timely manner. All assets, liabilities, 
contracts, property, unexpended and unobligated balances of 
appropriations, and other funds made available to the PTO will be 
transferred to the PTC. This includes those unappropriated funds 
contained in the Treasury Department's surcharge fee account.
  The new PTC will be able to provide its employees competitive wages 
and benefits. It will not be subject to personnel ceilings, including 
those established in the Federal Workforce Restructuring Act of 1994. 
During the transition from the Patent and Trademark Office to the 
Patent and Trademark Corporation, all employees will be assured of work 
for 1 year. I understand the concerns of PTO's employees who might view 
this bill as an effort to downsize the Office, and want to assure them 
that this is not my intent nor the intent of the administration. Our 
objective is to give the Commissioner discretion over the 
classification and compensation systems so the PTC can hire and keep 
top talent, not slash the compensation of PTO's employees. To assuage 
the concerns of the employees, and those who might object to the 1-year 
carryover provision, I would again emphasize that PTO projects a steady 
increase in both trademark and patent applications into the next 
century. Not only is this a healthy sign for our economy, it is a good 
sign that PTO's workers are still very much needed.
  Mr. President, although the PTC needs freedom from unreasonable 
bureaucratic redtape and regulations, we also must be careful to ensure 
that it remains accountable, and is not subject to abuse. My bill 
contains sufficient safeguards to ensure the PTC will not 

[[Page S 18235]]
be moving into luxurious offices, paying outrageous sums to its 
employees, or entering into sweetheart deals. These safeguards include 
oversight by the Congress, an Inspector General, the General Accounting 
Office, an advisory board, and users of the PTC's services.
  Under the legislation, Congress will continue to set the user fees 
for the PTC. I know some would have preferred to place this 
responsibility with the Commissioner, and perhaps we can revisit this 
issue in several years after we see how well the PTC is operating. For 
now, however, I thought it best to keep the fee-setting authority with 
Congress to ensure adequate oversight and accountability.
  The PTC also will have its own Inspector General to investigate 
waste, fraud, and abuse. This person will be appointed by the Secretary 
to ensure a greater degree of independence. Additionally, audits will 
be performed annually by either an independent CPA or the GAO. The 
results of these audits shall be made public and will be sent to 
Congress. Finally, the PTC is required, by the Government Control 
Corporation Act, to submit annual management reports to Congress and 
business-like budgets to the President. These reports and budgets must 
include statements on cash flows, operations, financial position, and 
internal accounting and administrative control systems.
  The Patent and Trademark Corporation Act would also have an advisory 
board to represent the views of users and other interested persons. The 
Secretary would appoint members to the board for terms of 3 years as 
well as select the Chair. The board would review and advise the 
Commissioner on the PTC's performance, budget, and user fees. 
Furthermore, the Commissioner is required to consult with the board 
prior to changing or proposing to change fees or regulations. The board 
will submit an annual report containing its review of the PTC to the 
President, Congress, and the Commissioner.
  Mr. President, I have drafted this bill in consultation with the 
Patent and Trademark Office, the administration, the National Academy 
of Public Administration, the American Intellectual Property Law 
Association, the International Trademark Association, the Intellectual 
Property Owners, Inc., the intellectual property section of the 
American Bar Association, and the National Treasury Employees Union. 
The benefits resulting from this legislation should be immediately 
apparent to the PTC's users. Not only will their applications be 
processed and awarded at a quicker rate, they will have input into how 
the corporation should be run. Furthermore, I believe that the PTC's 
increased productivity will have a direct beneficial effect on our 
economy.
  I hope my colleagues will support this legislation and I look forward 
to working with Senator Hatch, the chairman of the Judiciary Committee, 
and others as the process of reforming the Patent and Trademark Office 
moves forward.
  I ask unanimous consent that a copy of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1458

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

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

               TITLE I--PATENT AND TRADEMARK CORPORATION

Sec. 101. Establishment, officers, and functions of the Corporation.
Sec. 102. Management report.
Sec. 103. Use of Corporation name and definitions.
Sec. 104. Suspension or exclusion from practice.
Sec. 105. Fees.
Sec. 106. Trademark Trial and Appeal Board.
Sec. 107. Transfers.
Sec. 108. Transition provisions.
Sec. 109. Nonapplicability of Federal workforce reductions.
Sec. 110. Technical and conforming amendments.

                   TITLE II--MISCELLANEOUS PROVISIONS

Sec. 201. Separability.
Sec. 202. Effective date.
               TITLE I--PATENT AND TRADEMARK CORPORATION

     SEC. 101. ESTABLISHMENT, OFFICERS, AND FUNCTIONS OF THE 
                   CORPORATION.

       Chapter 1 of title 35, United States Code, is amended by 
     striking out sections 1, 2, 3, 4, 6, and 7 and inserting in 
     lieu thereof the following:

     ``Sec. 1. Establishment

       ``(a) The Patent and Trademark Corporation is established 
     as a wholly owned Government corporation subject to chapter 
     91 of title 31, except as otherwise provided in this title. 
     The Corporation shall be within the Department of Commerce 
     and shall be subject to the Secretary for patent and 
     trademark policy direction. For purposes of internal 
     management, the Corporation shall be considered a corporate 
     body apart from departmental supervision, except as otherwise 
     provided in this title.
       ``(b) The Patent and Trademark Corporation shall maintain 
     an office for the service of process in the District of 
     Columbia, or the metropolitan area thereof, 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 Corporation may establish offices in such other 
     place or places as it may deem necessary or appropriate in 
     the conduct of its business.
       ``(c) For purposes of this title, the Patent and Trademark 
     Corporation shall also be referred to as the `Corporation'.

     ``Sec. 2. Powers and duties

       ``(a) The Corporation shall have the powers and carry out 
     the functions and duties that are authorized by law with 
     respect to--
       ``(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 Corporation, or 
     any other matter included in the laws for which the 
     Corporation is responsible including the provision of this 
     title, the Act of July 5, 1946 (commonly referred to as the 
     Trademark Act of 1946 (15 U.S.C. 1051 et seq.)), and the 
     Patent and Trademark Office Reform Act of 1995;
       ``(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) In order to accomplish the purposes of this title, 
     the Corporation--
       ``(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 Corporation 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, as provided in section 8 of this 
     title;
       ``(4) may indemnify the Commissioner, officers, attorneys, 
     agents and employees (including members of the Advisory 
     Board), of the Corporation 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, without regard to chapter 35 of title 44;
       ``(6) without regard to the provisions of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471 et seq.); the Public Buildings Act of 1959 (40 U.S.C. 601 
     et seq.), and sections 501 and 502 of the Stewart B. McKinney 
     Act (42 U.S.C. 11411 and 11412) may--
       ``(A) acquire, construct, purchase, lease, hold, manage, 
     operate, and alter any property (real, personal, or mixed) or 
     any interest therein, as it determines necessary in the 
     transaction of its business, and sell, lease, grant; and
       ``(B) dispose of such property, as it deems necessary to 
     effectuate the purposes of this title for periods of time or 
     for terms as the Corporation determines necessary;
       ``(7)(A) may make purchases, contracts for the 
     construction, alteration, maintenance, or management and 
     operation of facilities and contracts for the supplies or 
     services, except personal services, after advertising, in 
     such manner and at such times sufficiently in advance of 
     opening bids, as the Corporation shall determine to be 
     adequate to insure notice and an opportunity for competition, 
     except such advertising shall not be required when the 
     Corporation determines that--
       ``(i) the making of any such purchase or contract without 
     advertising is necessary in the interest of furthering the 
     purposes of this title; or
       ``(ii) advertising is not reasonably practicable; and
       ``(B) may enter into and perform such purchases and 
     contracts for printing services, to include the process of 
     composition, platemaking, presswork, silk screen processes, 
     binding, microform, and the products of such processes, as it 
     determines necessary to effectuate the functions of the 
     Corporation, 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 civilian or military 
     agencies and instrumentalities of the Federal Government, on 
     a reimbursable basis, and, on a similar basis, to cooperate 
     with such other agencies and instrumentalities in the 
     establishment and use 

[[Page S 18236]]
     of services, equipment, and facilities of the Corporation;
       ``(9) may obtain from the Administrator of the General 
     Services Administration such services as the Administrator is 
     authorized to provide to 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 agency, government, 
     or 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 necessary functions on the 
     Corporation's behalf;
       ``(11) may enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions with 
     international, foreign and domestic public agencies and 
     private organizations and persons as needed in the conduct of 
     its business and on such terms as it determines appropriate;
       ``(12) 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, the Act of July 5, 1946 (commonly 
     referred to as the Trademark Act of 1946), and to laws 
     specifically applicable to wholly owned government 
     corporations that are not specifically inconsistent with this 
     title;
       ``(13) may retain and utilize all of its revenues and 
     receipts, including revenues from the sale, lease, or 
     disposal of any property (real, personal, or mixed) or any 
     interest therein, of the Corporation, including research and 
     development and capital investment, without apportionment 
     under the provisions of subchapter II of chapter 15 of title 
     31;
       ``(14) shall have the priority of the United States with 
     respect to the payment of debts out of bankrupt, insolvent, 
     and decedents' estates;
       ``(15) may accept monetary gifts or donations of services, 
     or of property, real, personal, mixed, tangible or 
     intangible, in aid of any purposes authorized under this 
     section;
       ``(16) may execute, in accordance with its bylaws, rules 
     and regulations, all instruments necessary and appropriate in 
     the exercise of any of its powers;
       ``(17) 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
       ``(18) shall pay any settlement or judgment entered against 
     it from the Corporation's own funds and not from the judgment 
     fund established under section 1304 of title 31.

     ``Sec. 3. Officers and employees

       ``(a)(1) The management of the Corporation shall be vested 
     in the Commissioner of Patents and Trademarks, 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 and of management experience, is especially 
     qualified to manage the Corporation.
       ``(2) The Commissioner shall--
       ``(A) be responsible for the management and direction of 
     the Corporation, including the granting and issuance of 
     patents and the registration of trademarks, and may delegate 
     these responsibilities to the officers and employees of the 
     Corporation whose performance of these duties shall be 
     subject to the Commissioner's review;
       ``(B) report directly to the Secretary on patent and 
     trademark policy matters;
       ``(C) consult with the Advisory Board established in 
     section 5 on a regular basis on matters relating to the 
     operation of the Corporation, 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) inform the Secretary of studies and programs 
     conducted under section 2(a)(3);
       ``(E) advise the Secretary on all aspects of intellectual 
     property policy, legislation, and issues;
       ``(F) advise the Secretary on international trade issues 
     concerning intellectual property;
       ``(G) promote in international trade the United States 
     industries that rely on intellectual property;
       ``(H) advise the Secretary of State, the United States 
     Trade Representative, and other appropriate department and 
     agency heads, subject to the authority of the Secretary, on 
     international intellectual property issues;
       ``(I) advise Federal agencies on ways to improve 
     intellectual property protection in other countries through 
     economic assistance and international trade;
       ``(J) review and coordinate all proposals by agencies to 
     assist foreign governments and international 
     intergovernmental agencies in improving intellectual property 
     protection;
       ``(K) carry on studies related to the effectiveness of 
     intellectual property protection throughout the world; and
       ``(L) in coordination with the Department of State, carry 
     on studies cooperatively with foreign intellectual property 
     offices and international intergovernmental organizations.
       ``(3) The Commissioner shall serve a term of 6 years, and 
     such period thereafter until a successor is appointed and 
     assumes office. The Commissioner may be reappointed to 
     subsequent terms.
       ``(4) The Commissioner shall receive as basic compensation 
     for a calendar year an amount not to exceed the equivalent of 
     the annual rate of basic pay for level II of the Executive 
     Schedule under section 5313 of title 5 and, in addition, may 
     receive as a bonus awarded by the Secretary, an amount up to 
     the equivalent of the annual rate of basic pay for such level 
     II, based upon the Secretary's evaluation of the 
     Commissioner's performance--
       ``(A) as defined in an annual performance agreement between 
     the Commissioner and the Secretary incorporating measurable 
     goals in such specific areas as productivity, cycle times, 
     efficiency, cost-reduction, innovative ways of delivering 
     patent and trademark services, and customer satisfaction, as 
     delineated in an annual performance plan; and
       ``(B) as reflected in the annual report required under 
     section 14.
       ``(5) The Commissioner shall, before taking office, take an 
     oath to discharge faithfully the duties of the Corporation.
       ``(6) The Commissioner shall designate an officer of the 
     Corporation who shall be vested with the authority to act in 
     the capacity of the Commissioner in the event of absence or 
     incapacity of the Commissioner.
       ``(b)(1) Officers and employees of the Corporation shall be 
     officers and employees of the United States as defined by 
     sections 2104 and 2105 of title 5, United States Code.
       ``(2)(A) 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.
       ``(B) The Deputy Commissioner for Patents and the Deputy 
     Commissioner for Trademarks shall be--
       ``(i) the principal advisors to the Commissioner on all 
     aspects of the activities of the Corporation that affect the 
     administration of patent and trademark operations, 
     respectively; and
       ``(ii) principally responsible for managing their 
     respective patent and trademark units.
       ``(3) The Commissioner shall appoint an Inspector General 
     and such other officers, employees (including attorneys), and 
     agents of the Corporation as the Commissioner considers 
     necessary to carry out its functions.
       ``(c)(1) Except as regards the Inspector General, the 
     Commissioner shall fix the compensation of officers and 
     employees in accordance with the policy set forth in section 
     5301 of title 5 including compensation based on performance.
       ``(2) Except as otherwise provided in this title or any 
     other provision of law, the basic pay of an officer or 
     employee of the Corporation for any calendar year may not 
     exceed the annual rate of basic pay in effect for level III 
     of the Executive Schedule under section 5314 of title 5 or 
     level ES-6 for the Senior Executive Service under section 
     5332 of title 5, whichever is higher. Total compensation, 
     including compensation based on performance (but not 
     including benefits or contributions to retirement systems), 
     may not exceed the equivalent of the basic rate of pay for 
     level I of the Executive Schedule under section 5312 of title 
     5.
       ``(3) The Commissioner shall define the authority and 
     duties of such officers and employees and delegate to them 
     such of the powers vested in the Corporation as the 
     Commissioner shall determine.
       ``(d) The Corporation shall not be subject to any 
     administratively or statutorily imposed limitation on 
     positions or personnel, and no positions or personnel of the 
     Corporation 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 
     Corporation.
       ``(e) Notwithstanding the provisions of title 5 (but 
     subject to the Inspector General Act of 1978 (5 U.S.C. 
     App.)), the Commissioner shall have sole and exclusive 
     discretion--
       ``(1) over the establishment, amendment, or repeal of any 
     position classification system to determine the 
     qualifications and procedures for appointment; any 
     compensation and award system except gainsharing, including 
     wages and compensation based on performance, and 
     contributions of the Corporation to the retirement and 
     benefits programs, except that the Corporation's contribution 
     shall not be less than that paid for Federal employees under 
     title 5;
       ``(2) to fix and adjust rates of pay without regard to the 
     provisions of chapter 53 of title 5 and abolish positions and 
     lay off without regard to the provisions of chapter 35 of 
     title 5 except that preference eligibility laws shall apply 
     in any layoff system; and
       ``(3) to determine any supplement to benefits beyond those 
     provided by statute.
       ``(f) The following provisions of title 5 shall not apply 
     to the Corporation or its officers and employees:
       ``(1) Chapter 31 (employment authorities), except that the 
     provisions of sections 3102 and 3110 shall apply to the 
     Corporation and its employees.
       ``(2) Chapter 33 (examination, selection, and placement), 
     except that the system of veterans' preference established by 
     chapter 33 shall apply to the Corporation and its employees.
       ``(3) Chapter 35 (retention, restoration, and 
     reemployment).
       ``(4) Chapter 43 (performance appraisal).
     
[[Page S 18237]]

       ``(5) Chapter 51 (classification).
       ``(6) Chapter 53, subchapter 3 (general pay rates).
       ``(g)(1) Officers and employees shall remain subject to 
     chapters 83 (Civil Service Retirement System), 84 (Federal 
     Employees Retirement System), 87 (life insurance), and 89 
     (health insurance) of title 5. The Corporation may supplement 
     the benefits provided under chapters 83 and 84 of such title 
     from time to time. The Corporation also may change the 
     application of chapters 87 and 89 of such title to its 
     officers and employees, except that such changes, in their 
     aggregate, shall not result in life and health benefits which 
     are less favorable to officers and employees than those 
     offered under chapters 87 and 89.
       ``(2) The Corporation shall withhold pay and make such 
     payments as are required under the Federal disability and 
     retirement system for the Government's share of the cost of 
     the Civil Service Retirement System or the Federal Employees 
     Retirement System applicable to the Corporation's employees 
     and their beneficiaries. The Corporation shall also 
     contribute to the employees' compensation fund, on the basis 
     of annual billings as determined by the Secretary of Labor, 
     for the benefit payments made from such fund on account of 
     the Corporation's employees. The annual billings shall also 
     include a statement of the fair portion of the cost of 
     administration of the respective funds, which shall be paid 
     into the Treasury as miscellaneous receipts.
       ``(h)(1) Chapter 71 of title 5 shall apply with respect to 
     the Corporation and its employees.
       ``(2) The Corporation and employees may bargain with 
     respect to the establishment, amendment, or repeal of--
       ``(A) any position classification system;
       ``(B) any compensation system, including wages and 
     compensation based on performance, and contribution of the 
     Corporation to the retirement and benefits program; and
       ``(C) any system to determine qualifications and procedures 
     for employment;
     in the same manner and to the same extent as under a Federal 
     Labor Relations Authority holding, in effect on the day 
     before the effective date of the Patent and Trademark Office 
     Reform Act of 1995, with regard to the negotiability of such 
     matters, unless such holding is overturned or modified by a 
     Federal court.
       ``(i)(1) On the effective date of the Patent and Trademark 
     Office Reform 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 Corporation 
     without a break in service.
       ``(2) No officer or employee of the Office who becomes an 
     officer or employee of the Corporation shall, for a period of 
     1 year after the effective date of the Patent and Trademark 
     Office Reform Act of 1995, be subject to separation or to any 
     reduction in compensation as a consequence of the 
     establishment of the Corporation.
       ``(3) The amount of sick and annual leave and compensatory 
     time accumulated under title 5 prior to the effective date of 
     the Patent and Trademark Office Reform Act of 1995, by 
     officers and employees of the Office who become officers and 
     employees of the Corporation under this section shall be 
     obligations of the Corporation.
       ``(4)(A) The individual serving as the Commissioner of 
     Patents and Trademarks on the day before the effective date 
     of the Patent and Trademark Office Reform Act of 1995 may 
     serve as the Commissioner until a Commissioner has been 
     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 Reform Act of 1995 may serve as 
     the Deputy Commissioner for Patents until a Deputy 
     Commissioner for Patents has been 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 Reform Act of 1995 may serve as 
     Deputy Commissioner for Trademarks until a Commissioner has 
     been appointed under subsection (b).
       ``(j) For purposes of appointment to a position in the 
     competitive service for which an officer or employee of the 
     Corporation is qualified, such officer or employee shall--
       ``(1) not forfeit any competitive status, acquired by such 
     officer or employee before the effective date of the Patent 
     and Trademark Office Reform Act of 1995, by reason of 
     becoming an officer or employee of the Corporation under 
     subsection (i)(1); or
       ``(2) if not covered by paragraph (1), acquire competitive 
     status after completing at least 1 year of continuous service 
     under a nontemporary appointment to a position within the 
     Corporation (taking into account such service, performed 
     before the effective date described in paragraph (1), as may 
     be appropriate).
       ``(k) 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 on the day before the effective date 
     of the Patent and Trademark Office Reform Act of 1995 shall 
     continue in effect with respect to the Corporation and its 
     officers and employees until modified, superseded, or set 
     aside by the Corporation or a court of competent jurisdiction 
     or by operation of law. The collective bargaining agreements 
     between the Patent and Trademark Office and the National 
     Treasury Employees Union 243, dated March 13, 1993, the 
     Patent and Trademark Office and the National Treasury 
     Employees Union 245, dated July 20, 1993, and the Patent and 
     Trademark Office and the Patent Office Professional 
     Association, dated October 6, 1986, as well as the 
     recognition of the three units, shall remain in effect until 
     modified, superseded, or set aside by the parties.

     ``Sec. 4. Restrictions on officers and employees as to 
       interest in patents

       ``Officers and employees of the Patent and Trademark 
     Corporation shall be incapable, during the period of their 
     appointments and for 1 year thereafter, of applying for a 
     patent and of acquiring, directly or indirectly, except by 
     inheritance or bequest, any patent or any right or interest 
     in any patent, issued or to be issued by the Corporation. In 
     patents applied for thereafter they shall not be entitled to 
     any priority date earlier than 1 year after the termination 
     of their appointment.

     ``Sec. 5. Advisory Board

       ``(a)(1) There is established an Advisory Board of the 
     Corporation, which shall consist of thirteen members, as 
     follows:
       ``(A) The Commissioner of Patents and Trademarks, ex 
     officio.
       ``(B) Twelve members appointed by the Secretary who shall 
     be United States citizens of high integrity and demonstrated 
     accomplishment in a variety of fields, including, finance, 
     labor relations, consumer affairs, academia, large and small 
     business or as an independent inventor. At least 6 shall have 
     strong backgrounds in patents or trademarks.
       ``(2) No other person may substitute for a member of the 
     Advisory Board.
       ``(3) The Secretary shall designate the chair of the Board, 
     whose term as chair shall be for 3 years.
       ``(4) Initial appointments to the Board shall be made 
     within 3 months after the effective date of the Patent and 
     Trademark Office Reform Act of 1995, and vacancies shall be 
     filled within 3 months after they occur.
       ``(b) Of those members of the Board specified in subsection 
     (a)(1)(A) who are original appointees, the Secretary shall 
     designate 4 who shall serve for a term of 1 year, 4 who shall 
     serve for a term of 2 years, and 4 who shall serve for a term 
     of 3 years. The term of members of the Board appointed after 
     the expiration of the terms of the first appointed members of 
     the Board shall be 3 years. The Secretary shall appoint an 
     individual to serve the unexpired term of a member who 
     withdraws or otherwise is unable to serve for the full term.
       ``(c) Members of the Board specified in subsection 
     (a)(1)(B) shall be special Government employees within the 
     meaning of section 202 of title 18. Members of the Board 
     specified in subsection (a)(1)(B) shall serve on a part-time 
     basis and shall be compensated at a per diem rate equivalent 
     to level III of the Executive Schedule under section 5314 of 
     title 5, in addition to reimbursement of reasonable incurred 
     expenses when engaged in performance of duties vested in the 
     Board.
       ``(d) The Board shall--
       ``(1) review the Corporation's policies, goals, 
     performance, budget, and user fees and advise the 
     Commissioner on these matters and any other matter that the 
     Commissioner refers to the Board;
       ``(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, the 
     Commissioner, 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; 
     and
       ``(3) meet at least quarterly, as provided by the bylaws of 
     the Corporation, and at any time at the request of the 
     Commissioner.
       ``(e)(1) The Corporation shall provide at the request of 
     the Board such assistance as is necessary for the Board to 
     perform its functions.
       ``(2) Members of the Board shall be provided access to 
     records and information of the Corporation, except for 
     personnel or other privileged information and information 
     concerning patent applications required to be kept in 
     confidence by section 122 of this title.
       ``(f) The provisions of the Federal Advisory Committee Act 
     (5 U.S.C. App.) shall not apply to any activities of the 
     Board, except that members shall be considered to be serving 
     on an advisory committee within the meaning of the Federal 
     Advisory Committee Act for purposes of section 208(b)(3) of 
     title 18.

     ``Sec. 6. Suits by and against the Corporation

       ``(a)(1) Any civil action, suit, or proceeding to which the 
     Corporation is a party is deemed to arise under the laws of 
     the United States. Exclusive jurisdiction over all civil 
     actions by or against the Corporation is in the Federal 
     courts as provided by law. For purposes of filing suits, the 
     Commissioner shall be the head of the Corporation.
       ``(2) Any action, suit, or proceeding against the 
     Corporation founded upon contract shall be subject to the 
     limitations and exclusive remedy provided in sections 
     1346(a)(2) and 1491 through 1509 of title 28, whether or not 
     such contract claims are cognizable under sections 507, 1346, 
     1402, 1491, 1496, 1497, 1501, 1503, 2071, 2072, 2411, 2501, 
     and 2512 of title 28. For purposes of the Contract Disputes 
     Act of 1978, the Commissioner shall be deemed to be the 
     agency head with respect to contract claims arising with 
     respect to the Corporation.
       ``(3) Any action, suit, or proceeding against the 
     Corporation founded upon tort shall be 

[[Page S 18238]]
     subject to the limitations and exclusive remedies provided in sections 
     1346(a) and 2671 through 2680 of title 28, whether or not 
     such tort claims are cognizable under section 1346(b) of 
     title 28.
       ``(4) Any action, suit, or proceeding against the 
     Corporation based upon an alleged violation of section 717 of 
     the Civil Rights Act of 1964 (42 U.S.C. 2000e-16), section 15 
     of the Age Discrimination in Employment Act of 1967 (29 
     U.S.C. 633a), title V of the Rehabilitation Act of 1973 (29 
     U.S.C. 791 et seq.) or section 6(d) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 206(d)) shall be subject to 
     the limitations and exclusive remedies provided for other 
     Federal Government executive agencies for a violation of such 
     section or title.
       ``(5) No attachment, garnishment, lien, or similar process, 
     intermediate or final, in law or equity, may be issued 
     against property of the Corporation.
       ``(6) The Corporation shall be substituted as defendant in 
     any civil action, suit, or proceeding against an employee of 
     the Corporation, if the Corporation determines that the 
     employee was acting within the scope of the employee's 
     employment with the Corporation. If the Corporation refuses 
     to certify scope of employment, the employee may at any time 
     before trial, petition the court to find and certify that the 
     employee was acting within the scope of the employee's 
     employment. Upon certification by the court, the Corporation 
     shall be substituted as the party defendant. A copy of the 
     petition shall be served upon the Corporation.
       ``(b)(1) Except as further provided in this section, in 
     relation to all judicial proceedings in which the Corporation 
     or an employee is a party or in which the Corporation is 
     interested and which arise from or relate to employees acting 
     within the scope of their employment, torts, contracts, 
     property, registration of patent and trademark practitioners, 
     patents or trademarks, or fees, the Corporation 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 Corporation under title 
     28 and other laws. In all other judicial proceedings in which 
     the Corporation or an employee of the Corporation is a party 
     or is interested, the Corporation may exercise these 
     authorities and duties only after obtaining authorization 
     from the Attorney General.
       ``(2) The Attorney General may file an appearance on behalf 
     of the Corporation or an employee of the Corporation, without 
     the consent of the Corporation, in any suit in which the 
     Corporation is a party and represent the Corporation with 
     exclusive authority in the conduct, settlement, or compromise 
     of that suit.
       ``(3) The Corporation may consult with the Attorney General 
     concerning any legal matter, and the Attorney General shall 
     provide advice and assistance to the Corporation, including 
     representing the Corporation in litigation, if requested by 
     the Corporation.
       ``(4) The Attorney General shall represent the Corporation 
     in all cases before the United States Supreme Court.
       ``(5) 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 appointed by the Corporation may 
     represent the Corporation in any legal proceeding in which 
     the Corporation or an employee of the Corporation 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.

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

       ``(a) There shall be in the Patent and Trademark 
     Corporation a Board of Patent Appeals and Interferences. The 
     Commissioner, the officer principally responsible for the 
     examination of patents, the officer principally responsible 
     for the examination of 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) 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 (35 
     U.S.C. 135(a)). 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. 102. MANAGEMENT REPORT.

       Section 14 of title 35, United States Code, is amended to 
     read as follows:

     ``Sec. 14. Annual report to Congress

       ``The Corporation shall prepare and submit to the Congress 
     an annual management report as required under section 9106 of 
     title 31.''.

     SEC. 103. USE OF CORPORATION NAME AND DEFINITIONS.

       Chapter 1 of title 35, United States Code, is amended by 
     inserting after section 14 the following new sections:

     ``Sec. 15. Use of Corporation name

       ``No individual, association, partnership, or corporation, 
     except the Corporation, shall hereafter use the words `United 
     States Patent and Trademark Corporation', `Patent and 
     Trademark Office', or any combination of such words, as the 
     name or part thereof under which such individual or entity 
     shall do business. Violations of the foregoing may be 
     enjoined by any Federal court at the suit of the Corporation. 
     In any such suit, the Corporation shall be entitled to 
     statutory damages of $1,000 for each day during which such 
     violation continues or is repeated and, in addition, may 
     recover actual damages flowing from such violation.

     ``Sec. 16. Definitions

       ``For purposes of this title:
       ``(1) The term `Advisory Board' means the Advisory Board of 
     the United States Patent and Trademark Corporation.
       ``(2) The term `Commissioner' means the Commissioner of the 
     United States Parent and Trademark Corporation.
       ``(3) The term `Corporation' means the United States Patent 
     and Trademark Corporation.
       ``(4) The term `intellectual property' shall include rights 
     in inventions; in trademarks, service marks, and commercial 
     names and designations; in literary, artistic and scientific 
     works; in performances of performing artists, phonograms and 
     broadcasts; in industrial designs; in trade secrets and 
     scientific discoveries; in semiconductor chip layout designs; 
     in geographical indications; and all other rights resulting 
     from intellectual activity in the industrial, scientific, 
     literary, or artistic fields.
       ``(5) The terms `Patent and Trademark Office' and `Office' 
     mean the Patent and Trademark Office of the Department of 
     Commerce.
       ``(6) The term `Secretary' means the Secretary of 
     Commerce.''.

     SEC. 104. 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 Corporation to conduct the hearing required by this 
     section.''.

     SEC. 105. FEES.

       (a) In General.--Chapter 4 of title 35, United States Code, 
     is amended by striking out section 42 and inserting in lieu 
     thereof the following:

     ``Sec. 42. Patent and Trademark Corporation funding

       ``(a) All fees for services performed by or materials 
     furnished by the Patent and Trademark Corporation will be 
     payable to the Corporation.
       ``(b)(1) Moneys of the Corporation not otherwise used to 
     carry out the functions of the Corporation shall be kept in 
     cash on hand or on deposit, or invested in obligations of the 
     United States or guaranteed thereby, or in obligations or 
     other instruments which are lawful investments for fiduciary, 
     trust, or public funds.
       ``(2) 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) The Corporation 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 
     (collectively referred to as `obligations') in an amount not 
     exceeding $2,000,000,000 outstanding at any one time, to 
     assist in financing its activities. Such obligations shall be 
     redeemable at the option of the Corporation before maturity 
     in the manner stipulated in such obligations and shall have 
     such maturity as is determined by the Corporation 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 Corporation issued hereunder 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 section of the purchase price of 
     such obligations of the Corporation shall be treated as 
     public debt transactions of the United States.

     ``Sec. 43. Audits

       ``(a) Financial statements of the Corporation shall be 
     prepared on an annual basis in accordance with generally 
     accepted accounting principles and shall be made publicly 
     available in a timely manner. Such statements shall be 
     audited by an independent certified public accountant chosen 
     by the Secretary. 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 private sector's 
     generally accepted auditing standards, to the extent 
     feasible. Upon the completion of the audit required by this 
     subsection, the person who audits the statement shall submit 
     a report on the audit to the Congress and the Corporation.
     
[[Page S 18239]]

       ``(b) The Comptroller General may review any audit of the 
     Corporation's financial statements conducted under subsection 
     (a). The Comptroller General shall report to the Congress and 
     the Corporation the results of any such review and shall 
     include in such report appropriate recommendations.
       ``(c) The Comptroller General may audit the financial 
     statements of the Corporation and such audit shall be in lieu 
     of the audit required by subsection (a). The Corporation 
     shall reimburse the Comptroller General for the cost of any 
     audit conducted under this subsection.
       ``(d) 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) This section shall apply to the Corporation in lieu 
     of the provisions of section 9105 of title 31.''.
       (b) Surcharge Fund.--(1) On the effective date of this Act, 
     there are transferred to the Patent and Trademark Office 
     those residual and unappropriated balances remaining as of 
     the effective date within the Patent and Trademark Office 
     Surcharge Fund established by section 10101(b) of the Omnibus 
     Budget Reconciliation Act of 1990 (35 U.S.C. 41 note).
       (2) Notwithstanding any other provision of law, effective 
     on and after October 1, 1998, section 10101 of the Omnibus 
     Reconciliation Act of 1990 (35 U.S.C. 41 note) shall cease to 
     apply to the revenues of the Corporation.
       (c) Technical and Conforming Amendments.--(1) The table of 
     sections for chapter 4 of title 35, United States Code, is 
     amended by striking out the item relating to section 42 and 
     inserting in lieu thereof the following:

``42. Patent and Trademark Corporation funding.
``43. Audits.''.

       (2) Section 10101 of the Omnibus Reconciliation Act of 1990 
     (35 U.S.C. 41 note) is amended--
       (A) in subsection (a), by striking out ``subsections (a) 
     and (b) of'';
       (B) in paragraphs (1)(A) and (2)(A) of subsection (b), by 
     striking out ``Patent and Trademark activities in the 
     Department of Commerce'' and inserting in lieu thereof 
     ``United States Patent and Trademark Corporation'';
       (C) in subsection (b), by striking out ``Patent and 
     Trademark Office'' each place it appears and inserting in 
     each such place ``United States Patent and Trademark 
     Corporation''; and
       (D) in subsection (c), by striking out ``Commissioner of 
     Patents and Trademarks'' and inserting in lieu thereof 
     ``Commissioner of the United States Patent and Trademark 
     Corporation''.

     SEC. 106. 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 officer principally responsible for the 
     examination of trademarks, the officer principally 
     responsible for the examination of patents, and members 
     competent in trademark law, who are appointed by the 
     Commissioner of the United States Patent and Trademark 
     Corporation.''.

     SEC. 107. TRANSFERS.

       (a) Functions.--Except as otherwise provided in this Act, 
     there are transferred to, and vested in, the United States 
     Patent and Trademark Corporation all functions, powers, and 
     duties vested by law in the Secretary of Commerce or the 
     Department of Commerce or in officers or components in the 
     Department with respect to the authority to grant patents and 
     register trademarks, and the Patent and Trademark Office, and 
     in the officers and components of such Office.
       (b) Assets.--The Secretary of Commerce is authorized and 
     directed, without need of further appropriation, to transfer 
     to the United States Patent and Trademark Corporation, on the 
     effective date of this title, those assets, liabilities, 
     contracts, property, records, and unexpended and unobligated 
     balances of appropriations, authorizations, allocations, and 
     other funds employed, held, used, arising from, available or 
     to be made available to the Department of Commerce (inclusive 
     of funds set aside for accounts receivable which are related 
     to functions, powers, and duties which are vested in the 
     Corporation by this title).

     SEC. 108. TRANSITION PROVISIONS.

       (a) Contracts and Agreements.--Except as otherwise provided 
     in this Act, all contracts, agreements, leases and other 
     business instruments, licenses, permits, and privileges that 
     have been afforded to the Patent and Trademark Office before 
     the effective date of this Act, shall continue in effect as 
     if the United States Patent and Trademark Corporation had 
     executed such contracts, agreements, leases, or other 
     business instruments which have been made in the exercise of 
     functions which are transferred to the Corporation by this 
     Act.
       (b) Rules.--Until changed by the United States Patent and 
     Trademark Corporation, any procedural and administrative 
     rules applicable to particular functions over which the 
     Corporation acquires jurisdiction on the effective date of 
     this Act shall continue in effect with respect to such 
     particular functions.
       (c) Application of Department Rules to Corporation.--Unless 
     otherwise provided by this Act, as related to the functions 
     vested in the United States Patent and Trademark Corporation 
     by this Act, all orders, determinations, rules, regulations, 
     and privileges of the Department shall cease to apply to the 
     Corporation on the effective date of this Act, except for 
     those which the Corporation determines shall continue to be 
     applicable.
       (d) Pending Proceedings.--Except as otherwise provided in 
     this Act, the transfer of functions related to and vested in 
     the United States Patent and Trademark Corporation by this 
     Act shall not affect judicial, administrative, or other 
     proceedings which are pending at the time this Act takes 
     effect, and such proceedings shall be continued by the 
     Corporation.
       (e) References.--Reference in any other Federal law, 
     Executive order, rule, regulation, or delegation of 
     authority, or any document of or relating to--
       (1) the Commissioner of Patents and Trademarks shall be 
     deemed to refer to the Commissioner of the United States 
     Patent and Trademark Corporation; and
       (2) the Patent and Trademark Office shall be deemed to 
     refer to the United States Patent and Trademark Corporation.

     SEC. 109. NONAPPLICABILITY OF FEDERAL WORKFORCE REDUCTIONS.

       No full-time equivalent position in the Patent and 
     Trademark Corporation shall be eliminated to meet the 
     requirements of section 5 of the Federal Workforce 
     Restructuring Act of 1994 (5 U.S.C. 3101 note).

     SEC. 110. TECHNICAL AND CONFORMING AMENDMENTS.

       (1) Section 500(e) of title 5, United States Code, is 
     amended by striking out ``the Patent Office'' and inserting 
     in lieu thereof ``the United States Patent and Trademark 
     Corporation''.
       (2) Section 5102(c)(23) of title 5, United States Code, is 
     amended by striking out ``Patent and Trademark Office'' and 
     inserting in lieu thereof ``United States Patent and 
     Trademark Corporation''.
       (3) Section 5313 of title 5, United States Code, is amended 
     by adding at the end thereof the following:
       ``Commissioner of Patents and Trademarks, United States 
     Patent and Trademark Office, Department of Commerce.''.
       (4) Section 5315 of title 5, United States Code, is amended 
     by adding at the end thereof the following:
       ``Inspector General, United States Patent and Trademark 
     Corporation.''.
       (5) Section 5316 of title 5, United States Code (5 U.S.C. 
     5316), is amended by striking out the items relating to 
     Commissioner of Patents, Department of Commerce, Deputy 
     Commissioner for Patents, Assistant Commissioner for Patents, 
     and Assistant Commissioner for Trademarks.
       (6) Section 8G(a)(2) of the Inspector General Act of 1978 
     (5 U.S.C. App.) is amended by inserting ``the United States 
     Patent and Trademark Corporation,'' before ``and the United 
     States Postal Service''.
       (7) Section 13 of title 35, United States Code, is amended 
     by striking out ``at the rate for each year's issue 
     established for this purpose in section 41(d) of this 
     title''.
       (8) The provisions of the Act of July 5, 1946 (commonly 
     referred to as the Trademark Act of 1946) (15 U.S.C. 1051 et 
     seq.), other than section 29, are amended by striking out 
     ``Patent and Trademark Office'' and ``United States Patent 
     and Trademark Office'' each place such terms appear and 
     inserting in each such place ``United States Patent and 
     Trademark Corporation''.
       (9) The Act of July 5, 1946 (commonly referred to as the 
     Trademark Act of 1946) is amended in section 12(a) (15 U.S.C. 
     1062(a)) by striking out ``shall refer the application to the 
     examiner in charge of the registration of marks''.
       (10) Section 4 of the Act of February 14, 1903 (15 U.S.C. 
     1511) is amended by striking out ``Patent and Trademark 
     Office''.
       (11) Section 19 of the Tennessee Valley Authority Act of 
     1933 (16 U.S.C. 831r) is amended by striking out ``Patent and 
     Trademark Office of the United States'' and inserting in lieu 
     thereof ``United States Patent and Trademark Corporation''.
       (12) Section 2320(d)(1)(A)(ii) of title 18, United States 
     Code, is amended by striking out ``United States Patent and 
     Trademark Office'' and inserting in lieu thereof ``United 
     States Patent and Trademark Corporation''.
       (13) Section 526 of the Tariff Act of 1930 (19 U.S.C. 
     1526(a)) is amended by striking out ``Patent and Trademark 
     Office'' and inserting in lieu thereof ``United States Patent 
     and Trademark Corporation''.
       (14) The Joint Resolution approved April 12, 1892 (20 
     U.S.C. 91) is amended by striking out ``Patent Office'' and 
     inserting in lieu thereof ``United States Patent and 
     Trademark Corporation''.
       (15) Section 505(m) of the Federal Food, Drug, and Cosmetic 
     Act (21 U.S.C. 355(m)) is amended by striking out ``Patent 
     and Trademark Office of the Department of Commerce'' and 
     inserting in lieu thereof ``United States Patent and 
     Trademark Corporation''.
       (16) Section 512(o) of the Federal Food, Drug, and Cosmetic 
     Act (21 U.S.C. 360b(o)) is 

[[Page S 18240]]
     amended by striking out ``Patent and Trademark Office of the Department 
     of Commerce'' and inserting in lieu thereof ``United States 
     Patent and Trademark Corporation''.
       (17) Section 702(d) of the Federal Food, Drug, and Cosmetic 
     Act (21 U.S.C. 372(d)) is amended by striking out 
     ``Commissioner of Patents'' and inserting in lieu thereof 
     ``Commissioner of Patents and Trademarks''.
       (18) Section 501(b)(1) of the Jobs Through Trade Expansion 
     Act of 1994 (22 U.S.C. 2151t-1(b)(1)) is amended by striking 
     out ``Patent and Trademark Office'' and inserting in lieu 
     thereof ``United States Patent and Trademark Corporation''.
       (19) Section 2 of the Act of August 27, 1935 (25 U.S.C. 
     305a) is amended by striking out ``Patent and Trademark 
     Office'' and inserting in lieu thereof ``United States Patent 
     and Trademark Corporation''.
       (20) Section 105(e) of the Federal Alcohol Administration 
     Act (27 U.S.C. 205(e)) is amended by striking out ``Patent 
     Office'' and inserting in lieu thereof ``United States Patent 
     and Trademark Corporation''.
       (21) Section 1295(a)(4) of title 28, United States Code, is 
     amended by striking out ``Patent and Trademark Office'' and 
     inserting in lieu thereof ``United States Patent and 
     Trademark Corporation''.
       (22) Section 1744 of title 28, United States Code, is 
     amended--
       (A) in the section heading by striking out ``Patent 
     Office'' and inserting in lieu thereof ``United States Patent 
     and Trademark Office'';
       (B) by striking out ``Patent Office'' each place such term 
     appears and inserting in lieu thereof ``United States Patent 
     and Trademark Corporation''; and
       (C) by striking out ``Commissioner of Patents'' and 
     inserting in lieu thereof ``Commissioner of Patents and 
     Trademarks''.
       (23) Section 1745 of title 28, United States Code, is 
     amended by striking out ``United States Patent Office'' and 
     inserting in lieu thereof ``United States Patent and 
     Trademark Corporation''.
       (24) Section 1928 of title 28, United States Code, is 
     amended by striking out ``Patent Office'' and inserting in 
     lieu thereof ``United States Patent and Trademark 
     Corporation''.
       (25) Section 9101(3) of title 31, United States Code, is 
     amended by adding at the end thereof:
       ``(O) the United States Patent and Trademark 
     Corporation.''.
       (26) The provisions of title 35, United States Code, are 
     amended by striking out ``Patent and Trademark Office'' and 
     ``United States Patent and Trademark Office'' each place such 
     terms appear and inserting in each such place ``United States 
     Patent and Trademark Corporation''.
       (27) The table of sections for chapter 1 of part I of title 
     35, United States Code, is amended to read as follows:

            ``CHAPTER 1--ESTABLISHMENT, OFFICERS, FUNCTIONS

``Sec.
``1. Establishment.
``2. Powers and duties.
``3. Officers and employees.
``4. Restrictions on officers and employees as to interest in patents.
``5. Advisory Board.
``6. Suits by and against the Corporation.
``7. Board of Patent Appeals and Interferences.
``8. Library.
``9. Classification of patents.
``10. Certified copies of records.
``11. Publications.
``12. Exchange of copies of patents with foreign countries.
``13. Copies of patents for public libraries.
``14. Annual report to Congress.
``15. Use of Corporation name.
``16. Definitions.''.
       (28) Section 302 of title 35, United States Code, is 
     amended in the second sentence by inserting ``established'' 
     before ``pursuant''.
       (29) Sections 371(c)(1) and 376(a) of title 35, United 
     States Code, are amended by striking out ``provided'' and 
     inserting in lieu thereof ``established under''.
       (30) Section 602 of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 474) is amended by inserting 
     after paragraph (21) the following new paragraph:
       ``(22) the United States Patent and Trademark 
     Corporation,''.
       (31) Section 151 (c) and (d) of the Atomic Energy Act of 
     1954 (42 U.S.C. 2181 (c) and (d)) are each amended by 
     striking out ``Commissioner of Patents'' and inserting in 
     lieu thereof ``Commissioner of Patents and Trademarks''.
       (32) Section 160 of the Atomic Energy Act of 1954 (42 
     U.S.C. 2190) is amended by striking out ``Patent Office'' and 
     inserting in lieu thereof ``United States Patent and 
     Trademark Corporation''.
       (33) Section 305(c) of the National Aeronautics and Space 
     Act of 1958 (42 U.S.C. 2457(c)) is amended by striking out 
     ``Commissioner of Patents'' and inserting in lieu thereof 
     ``Commissioner of Patents and Trademarks''.
       (34) Section 12(a) of the Solar Energy Research, 
     Development, and Demonstration Act of 1974 (42 U.S.C. 
     5510(a)) is amended by striking out ``Commissioner of Patent 
     Office'' and inserting in lieu thereof ``Commissioner of 
     Patents and Trademarks''.
       (35) Section 1111 of title 44, United States Code, is 
     amended by striking out ``Commissioner of Patents'' and 
     inserting in lieu thereof ``Commissioner of Patents and 
     Trademarks''.
       (36) Section 1123 of title 44, United States Code, is 
     amended by striking out ``the Patent Office,''.
       (37) Section 1114 of title 44, United States Code, is 
     amended by striking out ``Commissioner of Patents,''.
       (38)(A) Sections 1337 and 1338 of title 44, United States 
     Code, are repealed.
       (B) The table of sections for chapter 13 of title 44, 
     United States Code, is amended by striking out the items 
     relating to sections 1337 and 1338.
       (39) Section 10(i) of the Trading with the Enemy Act (50 
     U.S.C. App. 10) is amended by striking out ``Commissioner of 
     Patents'' and inserting in lieu thereof ``Commissioner of 
     Patents and Trademarks''.
                   TITLE II--MISCELLANEOUS PROVISIONS

     SEC. 201. SEPARABILITY.

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

     SEC. 202. EFFECTIVE DATE.

       This Act shall take effect 180 days after the date of the 
     enactment of this Act.
                                 ______

      By Mrs. BOXER (for herself and Mr. Biden):
  S. 1460. A bill to amend the Marine Mammal Protection Act of 1972 to 
support the International Dolphin Conservative Program in the eastern 
tropical Pacific Ocean, and for other purposes; to the Committee on 
Commerce, Science, and Transportation.


   the international dolphin protection and consumer information act

 Mrs. BOXER. Mr. President, nearly 6 years ago, as a Member of 
the House of Representatives, I introduced legislation to establish a 
dolphin safe label for tuna sold in the United States. The companion 
Senate bill was introduced by my colleague the distinguished junior 
Senator from Delaware, Joe Biden. In 1990, our bill--the Dolphin 
Protection Consumer Information Act--became law.
  This year, on October 4, the United States and 11 other nations--
Belize, Colombia, Costa Rica, Ecuador, France, Honduras, Panama, Spain, 
Mexico, Vanuatu, and Venezuela--signed the Declaration of Panama, an 
international agreement to manage tuna fishing in the Eastern Tropical 
Pacific. That agreement calls for changes in U.S. dolphin protection 
laws--including in our 1990 Dolphin Protection Act.
  Today, Senator Biden and I are introducing legislation--the Dolphin 
Protection and Consumer Information Act of 1995--that will implement 
all of the positive aspects of the Panama Declaration, while 
maintaining the current labelling requirements that allow only truly 
dolphin safe tuna to be sold in the United States.
  The signers and supporters of the Panama Declaration want other 
countries to be able to sell tuna in the United States market. We 
agree--as long as they catch that tuna by dolphin safe methods as 
prescribed by the 1990 Act. Our bill will lift the U.S. country-by-
country tuna embargo to give all tuna fishermen the opportunity to 
export to the United States market as long as they use dolphin safe 
practices. We believe this will open United States markets and comply 
with international trade agreements without gutting U.S. dolphin 
protection laws.
  As defined in the 1990 Act, dolphin safe tuna fishing means that 
dolphins were not chased or encircled with nets during a tuna fishing 
trip. The $1 billion U.S. canned tuna market is a dolphin safe market 
and consumers know that the dolphin safe label means that dolphins were 
not harassed or killed.
  We believe that the definition of dolphin safe should not be changed 
until we know for sure that setting purse seine nets on dolphins and 
then freezing them is dolphin safe. It would be consumer fraud to 
change the label. Let us continue to encourage those who fish tuna 
using the best dolphin safe methods to get the label.
  Let me briefly explain other major provisions and outcomes of our 
bill:
  First, it requires that the Panama Declaration and its 5,000 cap on 
dolphin mortality be enforceable and binding. Our bill makes it clear 
that if the limit is exceeded, all sets on dolphins allowed by the 
Panama Declaration would stop for the rest of the fishing year.
  Second, it requires that the Panama Declaration establish an 
enforceable timeframe for the reduction of dolphin mortality from the 
cap of 5,000 to zero. Our bill requires that dolphin mortality be 
reduced by a statistically significant amount each year.

[[Page S 18241]]

  Third, it will result in the protection of U.S. canners--who 5 years 
ago made a commitment to the American public to process and sell only 
dolphin safe tuna--from unfair foreign competition and from the dumping 
of stockpiled dolphin unsafe tuna in the U.S. market.
  Fourth, it ensures that countries will enforce their obligations 
under the International Dolphin Conservation Program--established in 
the Panama Declaration and fully reflected in our bill--to protect 
dolphins and the Eastern Tropical Pacific ecosystem by requiring that 
an embargo be reestablished for any country which consistently fails to 
take enforcement actions. Countries must show that they are acting to 
punish fishermen who do not comply with the requirements of the Panama 
Declaration--the embargoes could be reestablished.
  Fifth, it requires the establishment of a research program to 
determine (1) the effect of harassment by chase and encirclement on the 
health and biology of dolphins and its impact on dolphin populations 
encircled by purse seine nets in the ETP and (2) the extent to which 
the incidental take of non-target species, including juvenile tuna, 
occurs when fishing for yellowfin tuna using dolphin-safe methods and 
the impact of that incidental take on tuna stocks.
  Sixth, it ensures that Congress is informed of progress in the 
fishery by requiring that the Secretary of Commerce report to Congress 
within 3 years on the results of the dolphin stress and bycatch 
research.
  Seventh, it directs the Secretary of Commerce to make recommendations 
on how U.S. law should be modified according to what the research 
results show.
  Our bill is supported by 70 organizations, including the Sierra Club, 
the Humane Society of the United States, Earth Island Institute, Public 
Citizen's Global Trade Watch, American Society for the Prevention of 
Cruelty to Animals, Friends of the Earth, International Dolphin 
Project, and Defenders of Wildlife.
  While U.S. canners have not taken a formal position on this 
legislation, they have stated their firm support for the current 
dolphin safe label. Bumble Bee Seafoods for example stated that it is 
``firmly committed'' to it's policy of ``marketing only dolphin safe 
tuna''. In a statement Bumble Bee Seafoods said ``We share our 
customers concern about this issue and are proud of the fact that all 
Bumblebee tuna is verifiably 100 percent dolphin safe. . .  We believe 
that Bumblebee's dolphin safe policy is right and we will not 
compromise it''.
  I firmly believe that our bill is a responsible alternative to the 
bill recently introduced by our colleagues, Senator Stevens and Senator 
Breaux, which redefines ``dolphin safe'' to allow dolphins to be chased 
and encircled with purse seine nets as long as there is no observed 
mortality. Observed mortality is a tricky issue that leaves room for 
errors and a lot of judgement calls. What if the dolphin isn't quite 
dead yet? Injury to dolphins often occurs and can lead to eventual 
death. We don't know for sure that dolphins don't suffer from the 
constant chasing and encircling that they are subjected to.
  What Senator Biden and I, and the 70 environmental and other 
organizations who support us, are saying is: Look at the science 
first--then make changes to U.S. law. We say: Let's encourage and help 
those who are fishing dolphin safe and canning dolphin safe by opening 
the U.S. market to them. We say: Let's not weaken our commitment to 
save the dolphins for the sake of a little more foreign trade.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; REFERENCES.

       (a) Short Title.--This Act may be cited as the 
     ``International Dolphin Protection and Consumer Information 
     Act of 1995''.
       (b) References to Marine Mammal Protection Act of 1972.--
     Except as otherwise expressly provided, whenever in this Act 
     an amendment or repeal is expressed in terms of an amendment 
     to, or repeal of, a section or other provision, the reference 
     shall be considered to be made to a section or other 
     provision of the Marine Mammal Protection Act of 1972 (16 
     U.S.C. 1361 et seq.).

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds the following:
       (1) The nations that fish for tuna in the eastern tropical 
     Pacific Ocean have reduced dolphin mortalities associated 
     with that fishery from hundreds of thousands annually to 
     fewer than 5,000 annually.
       (2) The provisions of the Marine Mammal Protection Act of 
     1972 that impose a ban on imports from nations that fish for 
     tuna in the eastern tropical Pacific Ocean have served as an 
     incentive to reduce dolphin mortalities.
       (3) Consumers of the United States and Europe have made 
     clear their preference for tuna that has not been caught 
     through the killing, chasing, or harming of dolphins.
       (4) Tuna canners and processors of the United States have 
     led the canning and processing industry in promoting a 
     dolphin-safe tuna market.
       (5) The 12 signatory nations to the Declaration of Panama, 
     including the United States, agreed under that Declaration to 
     require that the total annual dolphin mortality in the purse 
     seine fishery for yellowfin tuna in the eastern tropical 
     Pacific Ocean not exceed 5,000, with a commitment and 
     objective to progressively reduce dolphin mortality to a 
     level approaching zero through the setting of annual limits.
       (b) Purposes.--The purposes of this Act are--
       (1) to recognize that nations fishing for tuna in the 
     eastern tropical Pacific Ocean have achieved significant 
     reductions in dolphin mortality associated with that fishery; 
     and
       (2) to eliminate the ban on imports of dolphin-safe tuna 
     from those nations.

     SEC. 3. DEFINITIONS.

       Section 3 (16 U.S.C. 1362) is amended by adding at the end 
     the following new paragraphs:
       ``(28) The term `International Dolphin Conservation 
     Program' means the international program established by the 
     agreement signed in La Jolla, California, in June 1992, as 
     formalized, modified, and enhanced in accordance with the 
     Declaration of Panama, that requires--
       ``(A)(i) that the total annual dolphin mortality in the 
     purse seine fishery for yellowfin tuna in the eastern 
     tropical Pacific Ocean be limited to 5,000; and
       ``(ii) a commitment and objective to progressively reduce 
     dolphin mortality to a level approaching zero through the 
     setting of annual limits;
       ``(B) the establishment of a per stock per year mortality 
     limit of dolphin at a level between 0.2 percent and 0.1 
     percent of the minimum population estimate to be in effect 
     through 2001;
       ``(C) beginning with the calendar year 2001, the 
     establishment of a per stock per year mortality limit of 
     dolphin at a level less than or equal to 0.1 percent of the 
     minimum population estimate;
       ``(D) that if a mortality limit is exceeded under--
       ``(i) subparagraph (A), all sets on dolphins shall cease 
     for the applicable fishing year; and
       ``(ii) subparagraph (B) or (C), all sets on the stocks 
     covered under subparagraph (B) or (C) and any mixed schools 
     that contain any of those stocks shall cease for the 
     applicable fishing year;
       ``(E) a scientific review and assessment to be conducted in 
     1998 to--
       ``(i) assess progress in meeting the objectives set for 
     2,000 under subparagraph (B); and
       ``(ii) as appropriate, consider recommendations for meeting 
     these objectives;
       ``(F) a scientific review and assessment to be conducted--
       ``(i) to review the stocks covered under subparagraph (C); 
     and
       ``(ii) as appropriate, consider recommendations to further 
     the objectives set under that subparagraph;
       ``(G) the establishment of a per vessel maximum annual 
     dolphin mortality limit consistent with the applicable per 
     year mortality caps, as determined under subparagraphs (A) 
     through (C); and
       ``(H) the provision of a system of incentives to vessel 
     captains to continue to reduce dolphin mortality, with the 
     goal of eliminating dolphin mortality.-
       ``(29) The term `Declaration of Panama' means the 
     declaration signed in Panama City, Republic of Panama, on 
     October 4, 1995.''.

     SEC. 4. AMENDMENTS TO TITLE I.

       (a) Section 101(a)(2) (16 U.S.C. 1371(a)(2)) is amended--
       (1) in the first sentence, by inserting ``, and 
     authorizations may be granted under title III with respect to 
     yellowfin tuna fishery of the eastern tropical Pacific Ocean, 
     subject to regulations prescribed under that title by the 
     Secretary without regard to section 103'' before the period; 
     and
       (2) in the second sentence, by striking the semicolon and 
     all that follows through ``practicable''.
       (b) Section 101(a)(2)(B) (16 U.S.C. 1371(a)(2)(B)) is 
     amended to read as follows:
       ``(B) in the case of yellowfin tuna harvested with purse 
     seine nets in the eastern tropical Pacific Ocean, and 
     products therefrom, to be exported to the United States, 
     shall require that the government of the exporting nation 
     provide documentary evidence that--
     
[[Page S 18242]]

       ``(i) the tuna or products therefrom were not banned from 
     importation under this paragraph before the effective date of 
     the International Dolphin Protection and Consumer Information 
     Act of 1995; or
       ``(ii) the tuna or products therefrom were harvested after 
     the effective date of the International Dolphin Protection 
     and Consumer Information Act of 1995 by vessels of a nation 
     that--

       ``(I) is a member of the Inter-American Tropical Tuna 
     Commission; and
       ``(II) is participating in the International Dolphin 
     Conservation Program; and
       ``(III) has implemented the obligations of that member as a 
     member of the Inter-American Tropical Tuna Commission; and

       ``(iii) the total dolphin mortality permitted under the 
     International Dolphin Conservation Program will not exceed 
     5,000 in 1996, or in any year thereafter and the total 
     dolphin mortality limit for each vessel in each successive 
     year shall be reduced by a statistically significant amount 
     until the goal of zero mortality is reached, except that the 
     per stock per year mortality limits for stocks designated as 
     depleted under this Act shall not exceed the actual 1994 
     mortality level;

     except that the Secretary shall not accept such documentary 
     evidence as satisfactory proof for purposes of clauses (i) 
     through (iii) if the government of the harvesting nation does 
     not authorize the Inter-American Tropical Tuna Commission to 
     release sufficient information to the Secretary to allow a 
     determination of compliance with the International Dolphin 
     Conservation Program, or if after taking into consideration 
     that information, findings of the Inter-American Tropical 
     Tuna Commission, and any other relevant information, 
     including information that a nation is consistently failing 
     to take enforcement actions on violations currently specified 
     in the agreement signed in La Jolla, California, in June 1992 
     and adopted by the International Dolphin Conservation 
     Program, the Secretary, in consultation with the Secretary of 
     State, shall find that the violations diminish the 
     effectiveness of the International Dolphin Conservation 
     Program and that the harvesting nation is not in compliance 
     with the International Dolphin Conservation Program;''.
       (c) Section 101 (16 U.S.C. 1371) is amended by adding at 
     the end the following new subsection:
       ``(d) The provisions of this Act shall not apply to a 
     citizen of the United States when such citizen incidentally 
     takes any marine mammal during fishing operations outside the 
     United States exclusive economic zone, as that term is 
     defined in section 3(6) of the Magnuson Fishery Conservation 
     and Management Act (16 U.S.C. 1802(6)) when employed on a 
     foreign fishing vessel of a harvesting nation that is in 
     compliance with the International Dolphin Conservation 
     Program.''.
       (d) Section 104(h) is amended to read as follows:
       ``(h)(1) Consistent with the regulations prescribed 
     pursuant to section 103 and consistent with the requirements 
     of section 101, the Secretary may issue an annual permit to a 
     United States vessel for the taking of such marine mammals, 
     together with regulations to cover the use of any such annual 
     permits.
       ``(2) Such annual permits for the incidental taking of 
     marine mammals in the course of commercial purse seine 
     fishing for yellowfin tuna in the eastern tropical Pacific 
     Ocean shall be governed by section 304, subject to the 
     regulations issued pursuant to section 302.''.
       (e) Section 110(a) (16 U.S.C. 1380(a)) is amended--
       (1) by striking ``(a)(1) The Secretary'' and inserting 
     ``(a) The Secretary''; and
       (2) by striking paragraph (2).
       (f) Section 901(d)(1) of the Dolphin Protection Consumer 
     Information Act (16 U.S.C. 1385(d)(1)) is amended to read as 
     follows:
       ``(1) It is a violation of section 5 of the Federal Trade 
     Commission Act (15 U.S.C. 45) for any producer, importer, 
     exporter, distributor, or seller of any tuna product that is 
     exported from or offered for sale in the United States to 
     include on the label of that product the term `Dolphin Safe' 
     or any other term or symbol that falsely claims or suggests 
     that the tuna contained in the product was harvested using a 
     method of fishing that is not harmful to dolphins if the 
     product contains--
       ``(A) tuna harvested on the high seas by a vessel engaged 
     in driftnet fishing;
       ``(B) tuna harvested in the eastern tropical Pacific Ocean 
     by a vessel using purse seine nets which do not meet the 
     requirements of being considered dolphin safe under paragraph 
     (2); or
       ``(C) tuna harvested outside the eastern tropical Pacific 
     Ocean by a vessel using purse seine nets which do not meet 
     the requirements for being considered dolphin safe under 
     paragraph (3).''.
       (g) Section 901(d) of the Dolphin Protection Consumer 
     Information Act (16 U.S.C. 1385(d)) is amended by adding at 
     the end the following new paragraphs:
       ``(3) For purposes of paragraph (1)(C), tuna or a tuna 
     product that contains tuna harvested outside the eastern 
     tropical Pacific Ocean by a fishing vessel using purse seine 
     nets is dolphin safe if--
       ``(A) it is accompanied by a written statement executed by 
     the captain of the vessel certifying that no purse seine net 
     was intentionally deployed on or to encircle dolphins during 
     the particular voyage on which the tuna was harvested; or
       ``(B) in any fishery in which the Secretary has determined 
     that a regular and significant association occurs between 
     marine mammals and tuna, it is accompanied by a written 
     statement executed by the captain of the vessel and an 
     observer, certifying that no purse seine net was 
     intentionally deployed on or to encircle marine mammals 
     during the particular voyage on which the tuna was harvested.
       ``(4) No tuna product may be labeled with any reference to 
     dolphins, porpoises, or marine mammals, except as dolphin 
     safe in accordance with this subsection.''.
       (h) Section 901(f) of the Dolphin Protection Consumer 
     Information Act (16 U.S.C. 1385(f)) is amended to read as 
     follows:
       ``(f) The Secretary, in consultation with the Secretary of 
     the Treasury, shall issue regulations to implement this 
     section, not later than 3 months after the effective date of 
     the International Dolphin Protection and Consumer Information 
     Act of 1995.''.

     SEC. 5. AMENDMENTS TO TITLE III.

       (a) The heading of title III is amended to read as follows:
       ``TITLE III--INTERNATIONAL DOLPHIN CONSERVATION PROGRAM''.
       (b) Section 301 (16 U.S.C. 1411) is amended--
       (1) in subsection (a), by striking paragraph (4) and 
     inserting the following:
       ``(4) Nations harvesting yellowfin tuna in the eastern 
     tropical Pacific Ocean have demonstrated their willingness to 
     participate in appropriate multilateral agreements to reduce, 
     and eventually eliminate, dolphin mortality in that fishery. 
     Recognition of the International Dolphin Conservation Program 
     will ensure that the existing trend of reduced dolphin 
     mortality continues, that individual stocks of dolphins are 
     adequately protected, and that the goal of eliminating all 
     dolphin mortality continues to be a priority.''; and
       (2) in subsection (b), by striking paragraphs (2) and (3) 
     and inserting the following:
       ``(2) support the International Dolphin Conservation 
     Program and efforts within the Program to reduce, and 
     eventually eliminate, the mortality referred to in paragraph 
     (1);
       ``(3) ensure that the market of the United States does not 
     act as an incentive to the harvest of tuna caught with 
     driftnets, or caught by deploying purse seine nets on or to 
     encircle dolphins, in the eastern tropical Pacific Ocean not 
     operating in compliance with the International Dolphin 
     Conservation Program;''.
       (c) Section 302 (16 U.S.C. 1412) is amended to read as 
     follows:

     ``SEC. 302. AUTHORITY OF THE SECRETARY.

       ``(a) Regulations.--(1) The Secretary shall issue 
     regulations to implement the International Dolphin 
     Conservation Program.
       ``(2)(A) Not later than 3 months after the effective date 
     of the International Dolphin Protection and Consumer 
     Information Act of 1995, consistent with section 101, the 
     Secretary shall issue regulations to authorize and govern the 
     incidental taking of marine mammals in the eastern tropical 
     Pacific Ocean by vessels of the United States participating 
     in the International Dolphin Conservation Program.
       ``(B) The regulations issued under this section shall 
     include provisions--
       ``(i) requiring observers on each vessel;
       ``(ii) requiring the use of the backdown procedure or other 
     procedures that are equally or more effective in avoiding 
     mortality of marine mammals in fishing operations;
       ``(iii) prohibiting intentional set on stocks and schools 
     in accordance with the International Dolphin Conservation 
     Program;
       ``(iv) requiring the use of special equipment, including 
     dolphin safety panels in nets, operable rafts, speedboats 
     with towing bridles, floodlights in operable condition, and 
     diving masks and snorkels;
       ``(v) ensuring that the backdown procedure during sets of 
     purse seine net on marine mammals is completed and rolling of 
     the net to sack up has begun no later than 30 minutes after 
     sundown;
       ``(vi) banning the use of explosive devices in all purse 
     seine operations;
       ``(vii) establishing per vessel maximum annual dolphin 
     mortality limits, total dolphin mortality limits and per 
     stock per year mortality limits subject to section 101 in 
     accordance with the International Dolphin Conservation 
     Program;
       ``(viii) preventing the making of intentional sets on 
     dolphins after reaching either the vessel maximum annual 
     dolphin mortality limits, total dolphin mortality limits, or 
     per stock per year mortality limit;
       ``(ix) preventing the encirclement with purse seine nets on 
     dolphins by a vessel without an assigned vessel dolphin 
     mortality limit;
       ``(x) allowing for the authorization and conduct of 
     experimental fishing operations, under such terms and 
     conditions as the Secretary may prescribe, for the purpose of 
     testing proposed improvements in fishing techniques and 
     equipment that may reduce or eliminate dolphin mortality or 
     that do not require the encirclement of dolphins in the 
     course of commercial yellowfin tuna fishing; and
       ``(xi) containing such other restrictions and requirements 
     as the Secretary determines are necessary to implement the 
     International Dolphin Conservation Program with respect to 
     the vessels of the United States;

     except that the Secretary may make such adjustments as may be 
     appropriate to provisions that pertain to fishing gear and 
     fishing 

[[Page S 18243]]
     practice requirements in order to carry out the International Dolphin 
     Conservation Program.
       ``(b) Consultation.--In developing a regulation under this 
     section, the Secretary shall consult with the Secretary of 
     State, the Marine Mammal Commission, and the United States 
     Commissioners to the Inter-American Tropical Tuna Commission 
     appointed under section 3 of the Tuna Conventions Act of 1950 
     (16 U.S.C. 952).
       ``(c) Emergency Regulations.--(1) If the Secretary 
     determines, on the basis of the best scientific information 
     available (including scientific information obtained under 
     the International Dolphin Conservation Program) that the 
     incidental mortality and serious injury of marine mammals 
     authorized under this title is having, or is likely to have, 
     a significant adverse effect on a marine mammal stock or 
     species, the Secretary shall take the following actions:
       ``(A) Notify the Inter-American Tropical Tuna Commission of 
     the findings of the Secretary, and include in that 
     notification recommendations to the Commission concerning 
     actions necessary to reduce incidental mortality and serious 
     injury and mitigate such adverse impact.
       ``(B) Prescribe emergency regulations to reduce incidental 
     mortality and serious injury and mitigate such adverse 
     impact.
       ``(2) Prior to taking action under subparagraph (A) or (B) 
     of paragraph (1), the Secretary shall consult with the 
     Secretary of State, the Marine Mammal Commission, and the 
     United States Commissioners to the Inter-American Tropical 
     Tuna Commission appointed under section 3 of the Tuna 
     Conventions Act of 1950 (16 U.S.C. 952).
       ``(3) Emergency regulations prescribed under this 
     subsection--
       ``(A) shall be published in the Federal Register, together 
     with an explanation thereof;
       ``(B) shall remain in effect for the duration of the 
     applicable fishing year; and
       ``(C) may be terminated by the Secretary at an earlier date 
     by publication in the Federal Register of a notice of 
     termination, if the Secretary determines that the reasons for 
     the emergency action no longer exist.
       ``(4) If the Secretary finds that the incidental mortality 
     and serious injury of marine mammals in the yellowfin tuna 
     fishery in the eastern tropical Pacific Ocean is continuing 
     to have a significant adverse impact on a stock or species, 
     the Secretary may extend the emergency regulations for such 
     additional periods as may be necessary.
       ``(d) Research.--(1) The Secretary may, in cooperation with 
     the nations participating in the International Dolphin 
     Conservation Program and with the Inter-American Tropical 
     Tuna Commission, undertake or support appropriate scientific 
     research to further the goals of the International Dolphin 
     Conservation Program, including--
       ``(A) devising cost-effective fishing methods and gear so 
     as to reduce, with the goal of eliminating, the incidental 
     mortality and serious injury of marine mammals in connection 
     with commercial purse seine fishing in the eastern tropical 
     Pacific Ocean;
       ``(B) developing cost-effective methods of fishing for 
     mature yellowfin tuna without setting nets on -dolphins or 
     other marine mammals; and
       ``(C) carrying out a scientific research program (as 
     described in section 117) for those marine mammal species and 
     stocks taken in the purse seine fishery for yellowfin tuna in 
     the eastern tropical Pacific Ocean, including species or 
     stocks that are not within waters under the jurisdiction of 
     the United States.
       ``(2) The Secretary, acting through the National Marine 
     Fisheries Service, shall undertake a research program to--
       ``(A) determine the effect of harassment by chase and 
     encirclement on the health and biology of dolphins and the 
     impact of that harassment on dolphin populations encircled by 
     purse seine nets in the course of fishing for yellowfin tuna 
     in the eastern tropical Pacific Ocean; and
       ``(B) the extent to which the incidental take of nontarget 
     species, including juvenile tuna, occurs when fishing for 
     yellowfin tuna using dolphin-safe methods including fish 
     aggregation devices, the impact of that incidental take on 
     tuna stocks, and where such methods are occurring in 
     international waters, the exclusive economic zone of any 
     nation, or coastal waters.
       ``(3)(A) Not later than 3 years after the date of enactment 
     of the International Dolphin Protection and Consumer 
     Information Act of 1995, the Secretary shall submit a report 
     to the Congress on the results of the research program 
     conducted under paragraph (2).
       ``(B) The Secretary shall include in the report submitted 
     to the Congress under this paragraph any recommendations made 
     on the basis of the results of the research program conducted 
     under paragraph (2) that the Secretary considers to be 
     appropriate concerning--
       ``(i) legislation to address issues that the Secretary 
     determines to be relevant to the results of the research 
     program; and
       ``(ii) changes to the International Dolphin Conservation 
     Program.
       ``(4) There are authorized to be appropriated to the 
     Department of Commerce $1,000,000 to be used by the 
     Secretary, acting through the National Marine Fisheries 
     Service, to carry out paragraph (2).''.
       (d) Title III (16 U.S.C. 1411) et seq. is amended--
       (1) by striking sections 303 and 304;
       (2) by inserting after section 302 the following:

     ``SEC. 303. REPORTS BY THE SECRETARY.

       ``Notwithstanding section 103(f), the Secretary shall 
     annually submit to the Congress a report that includes--
       ``(1) results of research conducted pursuant to section 
     320;
       ``(2) a description of the status and trends of stocks of 
     tuna;
       ``(3) a description of the efforts to assess, avoid, 
     reduce, and minimize the bycatch of juvenile yellowfin tuna 
     and bycatch of nontarget species;
       ``(4) a description of the activities of the International 
     Dolphin Conservation Program and of the efforts of the United 
     States in support of the goals and objectives of the 
     International Dolphin Conservation Program, including the 
     protection of dolphin populations in the eastern tropical 
     Pacific Ocean, and an assessment of the effectiveness of the 
     Program;
       ``(5) actions taken by the Secretary under the matter 
     following clause (iii) of section 101(a)(2)(B);
       ``(6) copies of any relevant resolutions and decisions of 
     the Inter-American Tropical Tuna Commission, and any 
     regulations promulgated by the Secretary under this title; 
     and
       ``(7) any other information that the Secretary considers to 
     be relevant.'';
       (3) by striking sections 305 and 306;
       (4) by inserting after section 303 the following:

     ``SEC. 304. PERMITS.

       ``(a) In General.--(1) In a manner consistent with the 
     regulations issued pursuant to section 302, the Secretary 
     shall issue a permit to a vessel of the United States 
     authorizing participation in the International Dolphin 
     Conservation Program and the Secretary may require a permit 
     for the person actually in charge of and controlling the 
     fishing operation of the vessel. The Secretary shall 
     prescribe such procedures as are necessary to carry out this 
     subsection, including requiring the submission of--
       ``(A) the name and official number or other identification 
     of each fishing vessel for which a permit is sought together 
     with the name and address of the owner thereof; and
       ``(B) the tonnage, hold capacity, speed, processing 
     equipment, and type and quantity of gear, including an 
     inventory of special equipment required under section 302, 
     with respect to each fishing vessel.
       ``(2) The Secretary may charge a fee for granting an 
     authorization and issuing a permit under this section. The 
     level of fees charged under this paragraph may not exceed the 
     administrative cost incurred in granting an authorization and 
     issuing a permit. Fees collected under this paragraph shall 
     be available to the Under Secretary of Commerce for Oceans 
     and Atmosphere for expenses incurred in granting 
     authorizations and issuing permits under this section.
       ``(3) After the effective date of the International Dolphin 
     Protection and Consumer Information Act of 1995, no vessel of 
     the United States shall encircle dolphins with purse seine 
     nets in the course of fishing for yellowfin tuna fishery in 
     the eastern tropical Pacific Ocean without a valid permit 
     issued under this section.
       ``(b) Permit Sanctions.--(1) In any case in which--
       ``(A) a vessel for which a permit has been issued under 
     this section has been used in the commission in an act 
     prohibited under section 305;
       ``(B) the owner or operator of any such vessel or any other 
     person who has applied for or been issued a permit under this 
     section has acted in violation of section 305; or
       ``(C) any civil penalty or criminal fine imposed on a 
     vessel, owner or operator of a vessel as provided for under 
     the International Dolphin Conservation Program, or other 
     person who has applied for or been issued a permit under this 
     section has not been paid or is overdue, the Secretary may--
       ``(i) revoke any permit with respect to such vessel, with 
     or without prejudice to the issuance of -subsequent permits;
       ``(ii) suspend a permit referred to in clause (i) for a 
     period of time the Secretary considers to be appropriate;
       ``(iii) deny a permit referred to in clause (i); or
       ``(iv) impose additional conditions or restrictions on any 
     permit issued to, or applied for by, any such vessel or 
     person under this section.
       ``(2) In imposing a sanction under this subsection, the 
     Secretary shall take into account--
       ``(A) the nature, circumstances, extent, and gravity of the 
     prohibited acts for which the sanction is imposed; and
       ``(B) with respect to the violator, the degree of 
     culpability, and history of prior offenses, and other such 
     matters as justice requires.
       ``(3) Transfer of ownership of a vessel, by sale or 
     otherwise, shall not extinguish any permit sanction that is 
     in effect or is pending at the time of transfer of ownership. 
     Before executing the transfer of ownership of a vessel, by 
     sale or otherwise, the owner shall disclose in writing to the 
     prospective transferee the existence of any permit sanction 
     that will be in effect or pending with respect to the vessel 
     at the time of transfer.
       ``(4) In the case of any permit that is suspended for the 
     failure to pay a civil penalty or criminal fine, the 
     Secretary shall reinstate the permit upon payment of the 
     penalty or fine and any accrued interest on that penalty or 
     fine at the prevailing rate (as determined by the Secretary).
     
[[Page S 18244]]

       ``(5) No sanctions shall be imposed under this section 
     unless there has been a prior opportunity for a hearing on 
     the facts underlying the violation for which the sanction is 
     imposed, either in conjunction with a civil penalty 
     proceeding under this title or otherwise.'';
       (5) by redesignating section 307 as section 305;
       (6) in section 305, as so redesignated--
       (A) in subsection (a)--
       (i) by striking paragraph (1) and inserting the following:
       ``(1) for any person to sell, purchase, offer for sale, 
     transport, or ship, in the United States, any tuna or tuna 
     product unless the tuna or tuna product is dolphin-safe (as 
     defined in section 901(d) of the Dolphin Protection Consumer 
     Information Act (16 U.S.C. 1385(d))) and has been harvested 
     in compliance with the International Dolphin Conservation 
     Program by a nation that is a member of the Inter-American 
     Tropical Tuna Commission;'';
       (ii) by striking paragraphs (2) and (3) and inserting the 
     following:
       ``(2) except as provided for in section 101(d), for any 
     person or vessel subject to the jurisdiction of the United 
     States to set intentionally a purse seine net on or to 
     encircle any marine mammal in the course of tuna fishing 
     operations in the eastern tropical Pacific Ocean, except in 
     accordance with this title and regulations issued pursuant to 
     this title;''; and
       ``(3) for any person to import any yellowfin tuna or 
     yellowfin tuna product or any other fish or fish product in 
     violation of a ban on importation imposed under section 
     101;''; and
       (B) in subsection (b)(2), by inserting ``(a)(5) or'' before 
     ``(a)(6)'';
       (7) by redesignating section 308 as section 306; and
       (8) in section 306, as so redesignated, by striking 
     ``section 303'' and inserting ``section 302(d)''.
       (e) Clerical Amendment.--The table of contents in the first 
     section of the Marine Mammal Protection Act of 1972 is 
     amended by striking the items relating to title III and 
     inserting the following:

        ``TITLE III--INTERNATIONAL DOLPHIN CONSERVATION PROGRAM

``Sec. 301. Finding and policy.
``Sec. 302. Authority of the Secretary.
``Sec. 303. Reports by the Secretary.
``Sec. 304. Permits.
``Sec. 305. Prohibitions.
``Sec. 306. Authorization of appropriations.''.

     SEC. 6. AMENDMENTS TO THE TUNA CONVENTIONS ACT OF 1950.

       (a) Section 3(c) of the Tuna Conventions Act of 1950 (16 
     U.S.C. 952(c)) is amended to read as follows:
       ``(c) at least one shall be the Director, or an appropriate 
     regional director, of the National Marine Fisheries Service; 
     and''.
       (b) Section 4 of the Tuna Conventions Act of 1950 (16 
     U.S.C. 953) is amended to read as follows:

     ``SEC. 4. GENERAL ADVISORY COMMITTEE AND SCIENTIFIC ADVISORY 
                   SUBCOMMITTEE.

       ``(1)(A) The Secretary, in consultation with the United 
     States Commissioners, shall appoint a committee to be known 
     as the `General Advisory Committee'. The General Advisory 
     Committee shall be composed of not less than 5 and not more 
     than 15 individuals and shall have balanced representation 
     from the various groups participating in the fisheries 
     included under the conventions, and from nongovernmental 
     conservation organizations.
       ``(B) The General Advisory Committee shall be invited to 
     have representatives attend all nonexecutive meetings of the 
     United States sections and shall be given full opportunity to 
     examine and to be heard on all proposed programs of 
     investigations, reports, recommendations, and regulations of 
     the Commission. The General Advisory Committee may attend any 
     meeting of an international commission on the invitation of 
     that commission.
       ``(2)(A) The Secretary, in consultation with the United 
     States Commissioners, shall appoint a subcommittee to be 
     known as the `Scientific Advisory Subcommittee'. The 
     Scientific Advisory Subcommittee shall be composed of not 
     less than 5 and not more than 15 qualified scientists and 
     shall have balanced representation from the public and 
     private sectors, including nongovernmental conservation 
     organizations. The Scientific Advisory Subcommittee shall 
     advise the General Advisory Committee and the Commissioners 
     on matters relating to the conservation of ecosystems, the 
     sustainable uses of living marine resources related to the 
     tuna fishery in the eastern Pacific Ocean, and the long-term 
     conservation and management of stocks of living marine 
     resources in the eastern tropical Pacific Ocean.
       ``(B) In addition to carrying out the duties specified, the 
     Scientific Advisory Subcommittee shall, as requested by the 
     General Advisory Committee, the United States Commissioners 
     or the Secretary, perform functions and provide assistance 
     required by formal agreements entered into by the United 
     States for this fishery, including the International Dolphin 
     Conservation Program. The functions referred to in the 
     preceding sentence may include--
       ``(i) the review of data from the International Dolphin 
     Conservation Program, including data received from the Inter-
     American Tropical Tuna Commission;
       ``(ii) recommendations concerning research needs, including 
     ecosystems, fishing practices, and gear technology research 
     (including the development and use of selective, 
     environmentally safe and cost-effective fishing gear), and 
     the coordination and facilitation of such research;
       ``(iii) recommendations concerning scientific reviews and 
     assessments required under the International Dolphin 
     Conservation Program, and engaging, as appropriate, in such 
     reviews and assessments;
       ``(iv) consulting with other experts as needed; and
       ``(v) recommending measures to ensure the regular and 
     timely full exchange of data among the parties to the 
     International Dolphin Conservation Program and the national 
     scientific advisory committee of each country that 
     participates in the program (or its equivalent entity of that 
     country).
       ``(3) The Secretary, in consultation with the United States 
     Commissioners, shall establish procedures to provide for 
     appropriate public participation and public meetings and to 
     provide for the confidentiality of confidential business 
     data. The Scientific Advisory Subcommittee shall be invited 
     to have representatives attend all nonexecutive meetings of 
     the United States sections and the General Advisory 
     Subcommittee and shall be given full opportunity to examine 
     and to be heard on all proposed programs of scientific 
     investigation, scientific reports, and scientific 
     recommendations of the Commission. Representatives of the 
     Scientific Advisory Subcommittee may attend meetings of the 
     Inter-American Tropical Tuna Commission in accordance with 
     the rules of such Commission.
       ``(4)(A) The Secretary, in consultation with the United 
     States Commissioners, shall fix the terms of office of the 
     members of the General Advisory Committee and the Scientific 
     Advisory Subcommittee.
       ``(B) Each member of the General Advisory Committee and the 
     Scientific Advisory Subcommittee who is not an officer or 
     employee of the Federal Government shall serve without 
     compensation.
       ``(C) The General Advisory Committee and the Scientific 
     Advisory Subcommittee shall be exempt from the Federal 
     Advisory Committee Act (5 U.S.C. App.).''.

     SEC. 7. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall become 
     effective upon--
       (1) a certification by the Secretary of State to the 
     Congress that a binding resolution of the Inter-American 
     Tropical Tuna Commission, or other legally binding 
     instrument, establishing the International Dolphin 
     Conservation Program has been adopted by each nation 
     participating in the International Dolphin Conservation 
     Program and is in effect; and
       (2) the promulgation of final regulations under section 
     302(a).

                          ____________________