[Congressional Record Volume 143, Number 142 (Tuesday, October 21, 1997)]
[Senate]
[Pages S10882-S10897]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. HUTCHINSON (for himself and Mr. Inhofe):
  S. 1299. A bill to limit the authority of the Administrator of the 
Environmental Protection Agency and the Food and Drug Administration to 
ban metered-dose inhalers; to the Committee on Labor and Human 
Resources.


                THE ASTHMA INHALER REGULATORY RELIEF ACT

  Mr. HUTCHINSON. Mr. President, I come to the Senate floor to talk 
about an issue which literally means life and breath to 30 million 
Americans. It appears that in an effort to clean up the environment, 
some heavy-handed bureaucrats are willing to reduce the quality of life 
for those Americans--children, adults, and senior citizens--who are 
dependent upon inhalers like this inhaler that I have with me today. As 
I rode the elevator up to the Chamber, I mentioned to the elevator 
operator what I was going to be doing. She said, ``Well, please do it 
because it means life to me. I have to have this to breathe.''
  I have a nephew, John Paul, who is an asthmatic, who has been 
dependent upon these inhalers that would be outlawed unless we act as 
the Senate.
  Because of this, I am offering the Asthma Inhaler Regulatory Relief 
Act, AIRR, which would block the Food and Drug Administration from 
banning certain metered dose inhalers, MDI's. I am glad today that 
Senator Shelby, Senator Bond, and Senator DeWine have all joined as 
original cosponsors on this legislation. Senator DeWine has a special 
interest in this, with four of his children, it is my understanding, 
being asthmatics and being dependent upon these inhalers. These 
inhalers are used by nearly 30 million Americans who suffer from 
respiratory diseases such as asthma, chronic obstructive pulmonary 
disease, and cystic fibrosis. These people have come to rely on their 
inhalers as a lifeline for daily living. Yet, the FDA at this time, in 
its very questionable wisdom, has decided that inhalers severely damage 
the environment and must be banned. One of only a few avenues to the 
outside world, the FDA would seal this avenue and ban these inhalers.
  The FDA initially published an advanced notice of a proposed 
rulemaking to eliminate the use of MDI's that use chlorofluorocarbons 
on March 6, 1997. About this time, I received several letters which 
initially sparked my interest in the issue. I have come to

[[Page S10883]]

find out that the FDA, in collaboration with the Environmental 
Protection Agency, proposed this rule as part of the EPA's desire to 
eliminate all uses of chlorofluorocarbons as soon as possible. Most 
metered dose inhalers use CFC's as the propellant to deliver the 
medicine from the inhaler to the lungs of the patient. Under the 1987 
Montreal protocol CFC's are to be phased out globally by the year 2005. 
However, certain uses of CFC's, including this inhaler, were explicitly 
recognized by signatories of the protocol as vital to human health 
while posing relatively little harm to the environment. This exception 
has allowed the continued manufacture and use of inhalers which use 
CFC's as their propellants.
  This exception, however, is being threatened by the Food and Drug 
Administration despite the objections of many, including the American 
Academy of Family Physicians. In their May 5, 1997 letter to Michael 
Friedman, Deputy Commissioner of the FDA, the physicians wrote:

       The Academy believes that the proposed rule might 
     negatively affect our patients' health care and urges the FDA 
     to continue to deem MDI's as ``essential'' under the Montreal 
     Protocol.

  These are the doctors who deal with our children day in and day out. 
They reiterated twice in their letter that they support eliminating 
CFC's from the environment but feel that this shortened timetable is 
not necessary and may be detrimental, very detrimental to their 
patients' health.
  Carol Browner, the Administrator of the Environmental Protection 
Agency, has come to the Congress on numerous occasions to lobby on 
behalf of EPA's proposed clean air standards. I serve on the clean air 
subcommittee. We have had Administrator Browner before us numerous 
times as an advocate for children. One of the most compelling arguments 
she has made on behalf of these new air standards is that she is saving 
the children and the elderly from unnecessary respiratory illness. I 
respect Ms. Browner for her zeal to protect children and the elderly, 
but I find it ironic and amazing and I have to wonder how she can 
support taking the medication away from those whom she claims to be 
trying to protect.
  I wonder how she can look these children in the eye and tell them she 
is taking away the one thing that allows them to play outside and enjoy 
the high-energy activities of running, climbing and participating in 
sports. Ms. Browner's actions will literally rob them of their 
childhood and force them to sit on the sidelines. Of course, the EPA 
has an answer. First, the EPA and the FDA will tell us there are other 
MDI's available that will provide the necessary protection for these 
children. The truth is there is only one that is currently available. 
Many are in the research and development stages, but that pales in 
comparison to the hundreds of these inhalers that are available 
currently.
  Doctors will tell you that different patients react differently to 
different medications. There are many inhalers that are virtually 
identical in composition yet have dramatically different effects on 
various patients. Again, quoting the American Academy of Family 
Physicians:

       We are concerned that the proposed rule will severely limit 
     the number of therapies available to our patients. We know 
     that a drug that works for one patient may not work for 
     another. We would like our members to have the flexibility to 
     try different therapies to find the one that is most 
     effective for their patients.

  Simply put, 1 inhaler is not enough and 10 is not enough. Doctors 
must have the ability to choose the medication that best suits their 
patients. In the case of respiratory treatment, one size definitely 
does not fit all.
  Another concern I have with allowing one inhaler to dominate the 
market is the cost to the consumer. Obviously, where there are hundreds 
as currently exist, including many generic brands, there will be lower 
prices for the consumer. If we allow the FDA and the EPA to ban CFC 
inhalers, many may not be able to afford the treatment. The majority of 
patients who suffer from these symptoms live in the inner-city where 
the cost of living is very high and their income very low. These 
families rely on inhalers which can cost eight times less than newer 
name brand products without CFC's. If these children from low-income 
inner-city families lose the most accessible inhaler, they are less 
likely to continue adequate treatment which is so important to a normal 
life.
  According to a recent Wall Street Journal article, the Joint Council 
of Allergy, Asthma and Immunology has told both the FDA and the EPA 
that because of these increased costs, their proposal will unfairly 
punish poor children and the elderly who have the highest risks of 
asthma-related sickness and death.
  A certain consequence of a decrease in the use of inhalers as part of 
a schedule to keep asthma in control is an increase in hospital 
admissions and an increase in deaths. According to a panel of the 
National Institute for Allergies and Infectious Diseases, between 1980 
and 1993 failure to comply with treatment explains a 300 percent 
increase in asthma-related deaths among children. This proposal put 
forth by the EPA and the FDA will increase costs and can only worsen 
this statistic.
  Another common argument the EPA will use is that by banning CFC's, we 
are making the air more safe for children and the elderly. While 
certainly there are studies that show these gases are harmful and 
increase the probability that an asthmatic will have an attack, if you 
look at the statistics, you will find that inhalers, such as this one, 
account for at most 1.5 percent of all CFC's produced in the world. The 
EPA supports taking away nearly 30 million people's inhalers to 
eliminate approximately 1.5 percent of the CFC's produced. That hardly 
seems like a logical target for reducing CFC's and preserving and 
maintaining the health of the American people.
  In the October edition of Insight Magazine, Robert Goldbert, senior 
research fellow at George Washington Center For Neuroscience, 
determines that banning MDI's that only account for 1.5 percent of CFC 
emissions is another cynical exploitation of kids for the sake of 
environmental correctness.
  I do not believe that this proposal is part of a strategy to save the 
ozone layer. I believe it is a strategy to use children as a political 
tool for an end that I frankly do not understand. We cannot allow the 
FDA and the EPA to require children and senior citizens to foot the 
bill for reductions in CFC's that will do no good, while hurting the 
most vulnerable.
  These actions, if allowed to proceed, will literally rob these 
children of their childhood and significantly reduce the quality of 
life of all those dependent on inhalers.
  I urge the Presiding Officer and all of my colleagues who may be 
listening today to join in cosponsorship of what I think is commonsense 
legislation and that is going to be to the benefit of 30 million 
Americans including children and the elderly and those who are most 
vulnerable in our society.
  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. 1299

       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 ``Asthma Inhaler Regulatory 
     Relief Act''.

     SEC. 2. LIMITATION ON AUTHORITY TO BAN METERED-DOSE INHALERS.

       Neither the Administrator of the Environmental Protection 
     Agency nor the Commissioner of Food and Drug Administration 
     may prohibit the manufacture, distribution, or sale of 
     metered-dose inhalers that use chlorofluorocarbons unless the 
     Administrator of the Environmental Protection Agency and the 
     Commissioner of the Food and Drug Administration jointly 
     certify to the Congress that alternatives to such inhalers 
     are available that, for all populations of users of such 
     inhalers, are comparable in terms of safety and 
     effectiveness, therapeutic indications, dosage strength, 
     costs, and retail availability.

     SEC. 3. MORATORIUM ON FURTHER RULEMAKING.

       The Commissioner of the Food and Drug Administration shall 
     withdraw the March 6, 1997, advance notice of proposed 
     rulemaking concerning chlorofluorocarbons in metered-dose 
     inhalers and shall not issue any other proposal until after 
     the 10th Meeting of the Parties to the Montreal Protocol on 
     Substances That Deplete the Ozone Layer. Any subsequent 
     proposal shall be in the form of an advance notice of 
     proposed rulemaking and shall be initiated only after 
     extensive consultations with patients, physicians,

[[Page S10884]]

     other health care providers, manufacturers of metered-dose 
     inhalers, and other stakeholders.

     SEC. 4. DEVELOPMENT OF STRATEGY.

       (a) In General.--Following the 10th meeting of Parties to 
     the Montreal Protocol on Substances That Deplete the Ozone 
     Layer, but not later than January 30, 1999, the Commissioner 
     of the Food and Drug Administration shall publish a new 
     advance notice of proposed rulemaking, setting forth the 
     initial strategy for facilitating the transition in the 
     United States to metered-dose inhalers that do not use 
     chlorofluorocarbons.
       (b) Obligations Under Montreal Protocol.--The initial 
     strategy developed under subsection (a) shall be submitted by 
     the Secretary of State to the Montreal Protocol Secretariat 
     by January 31, 1999, to fulfill United States obligations 
     under the Montreal Protocol decision IX/14.
                                 ______
                                 
      By Mr. GRAMS (for himself and Ms. Moseley-Braun):
  S. 1300. A bill to provide for the minting and circulation of new $1 
coins; to the Committee on Banking, Housing and Urban Affairs.


                 the united states $1 coin act of 1997

  Mr. GRAMS. Mr. President, today Senator Moseley-Braun and I are 
introducing the United States $1 Coin Act of 1997. The bill calls for a 
newly designated, golden-colored $1 coin to replace the Susan B. 
Anthony.
  Unless this legislation is approved in the near future, the U.S. Mint 
will begin the process of minting more of the unpopular Susan B. 
Anthony coins by 1999. The supply of Anthony coins in government 
inventories fell by a total of 137 million coins in 1995 and 1996. Only 
133 million remain as of September 30, 1997. The inventory has been 
falling at the rate of about 5 million per month because Anthony 
dollars are used at hundreds of vending locations, in more than a dozen 
major transit systems, and by the U.S. Postal Service.
  Because the U.S. Mint has stated that it needs 30 months to design 
and fabricate a new $1 coin, the timeframe for a decision by Congress 
is short.
  The current design of the SBA $1 coin is flawed because it has the 
same color and reeded edge as a quarter. This makes it difficult for 
consumers to tell the difference between an SBA $1 coin and a quarter.
  The United States $1 Coin Act of 1997 will require the Treasury 
Department to change the color and edge of the SBA $1 coin so that it 
is different from the quarter. The act will not terminate the $1 bill.
  Philip Diehl, Director of the U.S. Mint, stated his support for these 
reforms in his testimony to the House Subcommittee on Domestic and 
International Monetary Policy on October 21, 1997:

       The U.S. Mint fully supports legislation which would 
     authorize issuance of a new dollar coin with new 
     characteristics at such time as the SBA inventory is 
     exhausted. In addition, immediate passage is critical because 
     the U.S. Mint needs at least 30 months to research and test 
     coin alloys and suitability for use in commerce.

  Mr. President, I ask unanimous consent that both a copy of the United 
States $1 Coin Act of 1997 and a section-by-section summary of its 
contents to be entered into the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1300

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

     SECTION 1. SHORT TITLE.

       (a) Short Title.--This Act may be cited as the ``United 
     States $1 Coin Act of 1997''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

     SECTION 2. NEW $1 COIN.

       (a) Weight.--Section 5112(a) of Title 31, United States 
     Code, is amended by striking, ``and weighs 8.1 grams.''
       (b) Color and Content.--Section 5112(b) of title 31, United 
     States Code, is amended--
       (1) in the 1st sentence, by striking, ``dollar,''; and
       (2) by inserting after the 4th sentence, the following new 
     sentence: ``The dollar coin shall be golden in color, have a 
     distinctive edge, have tactile and visual features that make 
     the denomination of the coin readily discernable, be minted 
     and fabricated in the United States, and have similar 
     metallic, anti-counterfeiting properties as United States 
     clad coinage in circulation on the date of enactment of the 
     United States $1 Coin Act of 1997.''
       (c) Design.--Section 5112(d)(1) of title 31, United States 
     Code, is amended by striking out the 5th and 6th sentences 
     and inserting the following new sentence: ``The Secretary of 
     the Treasury, in consultation with Congress, shall select 
     appropriate designs for the obverse and reverse sides of the 
     dollar coin.''.
       (d) Production of New Dollar Coins.--
       (1) In general.--Upon the depletion of the Government's 
     supply (as of the date of the enactment of this Act) of $1 
     coins bearing the likeness of Susan B. Anthony, the Secretary 
     of Treasury shall place into circulation $1 coins which 
     comply with the requirements of subsections (b) and (d)(1) of 
     section 5112 of title 31, United States Code, as amended by 
     subsections (b) and (c) of this section. The Secretary may 
     include such $1 coins in any numismatic set produced by the 
     United States Mint before the date on which the $1 coins are 
     placed in circulation.
       (2) Authority of secretary to continue production.--If the 
     supply of $1 coins bearing the likeness of Susan B. Anthony 
     is depleted before production has begun of $1 coins which 
     bear a design which complies with the requirements of 
     subsections (b) and (d)(1) of section 5112 of title 31, 
     United States Code, as amended by subsections (b) and (c) of 
     this section, the Secretary of the Treasury shall continue to 
     mint and issue $1 coins bearing the likeness of Susan B. 
     Anthony in accordance with such section 5112 (as in effect on 
     the day before the date of the enactment of this Act) until 
     such time as production begins.

     SECTION 3. MARKETING PROGRAM.

       (a) In General.--Before placing into circulation $1 coins 
     authorized under section 2 of this Act, the Secretary of the 
     Treasury shall adopt a program to promote the use of such 
     coins by commercial enterprises, mass transit authorities, 
     and local, state and federal government agencies.
       (b) Study Required.--The Secretary of the Treasury shall 
     conduct a study on the progress of the marketing program 
     authorized by subsection (a).
       (c) Report.--No later than March 31, 2001, the Secretary of 
     the Treasury shall submit a report to Congress on the results 
     of the study conducted pursuant to subsection (b).
                                                                    ____


     United States $1 Coin Act of 1997--Section-by-Section Analysis

     Section 1. Short Title
       The Act is called the ``United States $1 Coin Act of 
     1997.''
     Section 2. New $1 Coin
       Subsection 2(a). The new $1 coin will be of a golden color 
     so that consumers can tell the difference between it and a 
     quarter. The 8.1 gram weight restriction for the dollar coin 
     is deleted to take into account the difference in weight 
     caused by the coin being minted from a different alloy. 
     However, the new $1 coin will retain the same 1.043 inches 
     diameter as the old coin.
       Subsection 2(b). The current $1 coin has the same color and 
     same reeded edge of a quarter. This subsection authorizes 
     that the new $1 coin be golden in color and have a 
     distinctive (probably smooth) edge. The change in the edge 
     will permit vision impaired consumers to be able to 
     differentiate the $1 coin from a quarter.
       Subsection 2(c). This permits the Secretary of the 
     Treasury, in consultation with Congress, to change the design 
     of the dollar coin.
       Subsection 2(d)(1). The U.S. Mint estimates that the 
     current supply of old $1 coins will be depleted within 30 
     months. This subsection requires that upon the depletion of 
     the current supply of old $1 coins, the Treasury Department 
     shall place into circulation the new $1 coins. The Treasury 
     Department is also authorized to sell the new $1 coin as part 
     of a special set for coin collectors prior to date in which 
     the new coins are set to be placed in general circulation.
       Subsection 2(d)(2). This requires the Treasury Department 
     to temporarily mint more SBA $1 coins, if the supply of these 
     coins is for some reason depleted prior to the introduction 
     of the new $1 coin. This will assure that commercial 
     enterprises and mass transit authorities will not experience 
     shortages of $1 coins prior to the introduction of the new $1 
     coin.
     Section 3. Marketing Program
       This requires the Treasury Department to publicize the 
     issuance of the new $1 coin and promote the use of such $1 
     coins to commercial enterprises, mass transit authorities and 
     government agencies. It requires the Treasury Department to 
     report on the progress of their promotion efforts no later 
     than March 31, 2001.
                                 ______
                                 
      By Mr. GRASSLEY (for himself and Mr. Durbin):
  S. 1301. A bill to amend title 11, United States Code, to provide for 
consumer bankruptcy protection, and for other purposes; to the 
Committee on the Judiciary.


             The ``Consumer Bankruptcy Reform Act of 1997''

  Mr. GRASSLEY. Mr. President, I rise today to introduce the Consumer 
Bankruptcy Reform Act of 1997. This bill, which I am introducing with 
Senator Durbin, will tighten bankruptcy laws and do much to stem the 
tide of casual bankruptcies. With bankruptcy filings at all time record 
highs, it's imperative that Congress enact serious and tough reforms of 
the consumer bankruptcy chapters.
  By far, the most pressing bankruptcy policy question facing America 
today relates to the explosion of consumer bankruptcies. Last April, I 
chaired a hearing on the crisis in consumer bankruptcies. While there's 
not much agreement about the root causes of the

[[Page S10885]]

rise in consumer bankruptcies, it's obvious that Congress needs to do 
something now--before the economy takes a downturn--to reverse this 
trend. At the present time, the economy is doing well and unemployment 
is low. Inflation is under control.
  But we know there are always potholes on the road to economic 
prosperity. And we know that when the economy declines, bankruptcies 
increase. With so many bankruptcies now, when times are good, I shudder 
to think of the strains we will face if we hit a recession. Clearly, 
Congress needs to act while the economy is still in good shape.
  The Consumer Bankruptcy Reform Act will discourage casual 
bankruptcies by sending a clear signal that you can't file for 
bankruptcy and walk away from your debts if you have the ability to re-
pay some portion of those debts. This is a simple and straightforward 
idea whose time has come. According to my research, Congress considered 
reserving bankruptcy relief for only those Americans who can't re-pay 
their debts as far back as 1932. So, what we're proposing is not based 
on some unprecedented concept, but instead has a long and distinguished 
history.
  The bill I'm introducing today amends section 707(b) of the 
bankruptcy code to permit bankruptcy judges to transfer debtors to 
chapter 13, or dismiss a case outright, if the debtor could re-pay 20 
percent or more of their nonpriority unsecured debts. And the bill 
changes current law to let creditors bring motions to bankruptcy judges 
to have debtors moved to chapter 13 or have their cases dismissed. This 
means that creditors can be the masters of their own destiny. The 
bankruptcy code should not prevent creditors from even presenting 
evidence that debtors who could repay their debts are abusing the 
bankruptcy code and walking away scott-free.

  The bill also allows private chapter 7 trustees to bring motions 
under the new section 707(b). And if they win on their motion, and the 
debtor is either dismissed or transferred to chapter 13, the private 
trustee will be reimbursed for attorney's fees. As an added incentive 
for the private trustees, if they win on a section 707(b) motion, the 
court can order the debtor's attorney fined and make that fine payable 
to the trustee. Thus, there will be a army of trustees looking for 
debtors who shouldn't be in bankruptcy. This will cause people to think 
twice before rushing to declare bankruptcy. And that's a very positive 
reform.
  However, in order to forge a bipartisan compromise, the bill doesn't 
make ability to repay the only factor in determining whether to 
transfer or dismiss a case. Instead, each debtor's individual 
circumstances will be examined. In this way, our bill avoids the 
injustice which can accompany a crude formula with practically no 
exceptions.
  I'm also very aware that there have been abuses by creditors using 
harsh and abusive tactics to collect debts from people who have 
declared bankruptcy. So, the Consumer Bankruptcy Reform Act contains an 
entire title--title II--dedicated to enhancing consumer protections by 
requiring judges to impose stiff penalties for abusive conduct and 
frivolous court filings. As a strong supporter of rule 11 reform, I 
believe that Congress should crack down on groundless court filings 
which some creditors have used to harass and intimidate debtors.
  I also believe that the Grassley-Durbin bill will encourage 
alternative dispute resolution and out-of-court settlements under the 
new section 707(b), if a creditor refuses to attempt ADR, then a debtor 
who could otherwise be transferred from chapter 7 to chapter 13 can 
raise this noncooperation as a defense. This will encourage creditors 
to negotiate out-of-court settlements. And that will save court time 
and resources--a goal which I am strongly committed to. I think that 
bringing Bureau of Labor statistics numbers into the bankruptcy code 
for the first time, as the House bill does, is unprecedented and will 
breed new and costly litigation. The Grassley-Durbin bill avoids this 
problem by relying on time-tested bankruptcy provisions to identify 
chapter 7 filers who really need to be in chapter 13 or out of the 
bankruptcy system altogether.
  This bill is fair and balanced and will implement needed changes 
efficiently and without the uncertainty and new litigation associated 
with statistical formulas which are completely foreign to the 
bankruptcy code. It will crack down on bankruptcy abuses on both sides 
of the equation. And it will tell those who don't want to take personal 
responsibility for their debts that the free-ride is over.
  Finally, the bill also strikes the cap on single asset real estate, a 
goal which I have long supported. I'm very grateful to Senator Durbin 
for working with me on this matter, since it really is so important to 
the health of the commercial banking industry.
  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. 1301

       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 ``Consumer Bankruptcy Reform 
     Act of 1997''.
                    TITLE I--NEEDS BASED BANKRUPTCY

     SEC. 101. CONVERSION.

       Section 706(c) of title 11, United States Code, is amended 
     by striking ``13''.

     SEC. 102. DISMISSAL OR CONVERSION.

       (a) In General.--Section 707 of title 11, United States 
     Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

     ``Sec. 707. Dismissal of a case or conversion to a case under 
       chapter 13'';

     and
       (2) in subsection (b)--
       (A) by inserting ``(1)'' after ``(b)''; and
       (B) in paragraph (1), as redesignated by subparagraph (A) 
     of this paragraph--
       (i) in the first sentence--

       (I) by striking ``, but not at the request or suggestion of 
     a party in interest,'';
       (II) by inserting ``, or, with the debtor's consent, 
     convert such a case to a case under chapter 13 of this 
     title,'' after ``consumer debts''; and
       (III) by striking ``substantial abuse'' and inserting 
     ``abuse''; and

       (ii) by striking the last sentence and inserting the 
     following:
       ``(2) In considering under paragraph (1) whether the 
     granting of relief would be an abuse of the provisions of 
     this chapter, the court shall consider whether--
       ``(A) under section 1325(b)(1) of this title, on the basis 
     of the current income of the debtor, the debtor could pay an 
     amount greater than or equal to 20 percent of unsecured 
     claims that are not considered to be priority claims (as 
     determined under subchapter I of chapter 5 of this title);
       ``(B) the debtor filed a petition for the relief in bad 
     faith; and
       ``(C)(i) the debtor made good-faith efforts, before the 
     filing of the petition, to negotiate an alternative repayment 
     schedule or to use alternative methods of dispute resolution; 
     and
       ``(ii) if the debtor made efforts described in clause (i), 
     the creditors of that debtor unreasonably refused to engage 
     in the alternative methods of dispute resolution or to 
     negotiate an alternative repayment schedule.
       ``(3)(A) If a panel trustee appointed under section 
     586(a)(1) of title 28 brings a motion for dismissal or 
     conversion under this subsection and the court grants that 
     motion, the court shall order the counsel for the debtor, if 
     the debtor is represented by counsel, to reimburse the 
     trustee for all reasonable costs in prosecuting the motion, 
     including reasonable attorneys' fees.
       ``(B) If the court finds that the attorney for the debtor 
     violated Rule 9011, at a minimum, the court shall order--
       ``(i) the assessment of an appropriate civil penalty 
     against the counsel for the debtor; and
       ``(ii) the payment of the civil penalty to the panel 
     trustee or the United States trustee.
       ``(C) In the case of a petition referred to in subparagraph 
     (B), the signature of an attorney shall constitute a 
     certificate that the attorney has--
       ``(i) performed a reasonable investigation into the 
     circumstances that gave rise to the petition; and
       ``(ii) determined that the petition--
       ``(I) is well grounded in fact; and
       ``(II) is warranted by existing law or a good faith 
     argument for the extension, modification, or reversal of 
     existing law and does not constitute an abuse under paragraph 
     (1) of this subsection.
       ``(4) The court shall award a debtor all reasonable costs 
     in contesting a motion brought by a party in interest under 
     this subsection (including reasonable attorneys' fees and 
     actual damages in an amount not less than $5,000) if--
       ``(A) the court does not grant the motion; and
       ``(B) the court finds that--
       ``(i) the position of the party that brought the motion was 
     not substantially justified; or
       ``(ii) the party brought the motion solely for the purpose 
     of coercing a debtor into waiving a right guaranteed to the 
     debtor under this title.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 7 of title

[[Page S10886]]

     11, United States Code, is amended by striking the item 
     relating to section 707 and inserting the following:

``707. Dismissal of a case or conversion to a case under chapter 13.''.
        TITLE II--ENHANCED PROCEDURAL PROTECTIONS FOR CONSUMERS

     SEC. 201. ALLOWANCE OF CLAIMS OR INTERESTS.

       Section 502 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(k)(1) The court shall award the debtor reasonable 
     attorneys' fees and costs if, after an objection is filed by 
     a debtor, the court--
       ``(A) disallows the claim; or
       ``(B) reduces the claim by an amount greater than 5 percent 
     of the amount of the initial claim filed by a party in 
     interest.
       ``(2) If the court finds that the position of a claimant 
     under this section is not substantially justified, the court 
     shall, in addition to awarding a debtor reasonable attorneys' 
     fees and costs under paragraph (1), award additional punitive 
     damages in the amount of $5,000.''.

     SEC. 202. EXCEPTIONS TO DISCHARGE.

       Section 523 of title 11, United States Code, is amended to 
     read as follows:
       ``(d)(1) If a creditor requests a determination of 
     dischargeability of a consumer debt under this section and 
     that debt is discharged, the court shall award the debtor 
     reasonable attorneys' fees and costs.
       ``(2) In addition to making an award to a debtor under 
     paragraph (1), if the court finds that the position of a 
     creditor in a proceeding covered under this section is not 
     substantially justified, the court shall, in addition to 
     making an award of reasonable attorneys' fees and costs under 
     paragraph (1), award an amount equal to the greater of--
       ``(A)(i) the amount of actual damages; multiplied by
       ``(ii) 3; or
       ``(B) $5,000.''.

     SEC. 203. EFFECT OF DISCHARGE.

       Section 524 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(i) The failure of a creditor to credit payments received 
     under a plan confirmed under this title (including a plan of 
     reorganization confirmed under chapter 11 of this title) in 
     the manner required by the plan (including crediting the 
     amounts required under the plan) shall constitute a violation 
     of an injunction under subsection (a)(2).
       ``(j)(1) Except as provided in paragraph (2), a creditor 
     may not charge a debtor, or the account of a debtor, for 
     attorneys' fees or costs for work performed in connection 
     with a case brought under this title.
       ``(2) Any charge made by a creditor in violation of this 
     subsection shall constitute a violation of an injunction 
     under subsection (a)(2).
       ``(k) An individual who is injured by the failure of a 
     creditor to comply with the requirements for a reaffirmation 
     agreement under subsections (c) and (d), or by any willful 
     violation of the injunction under subsection (a)(2), shall be 
     entitled to recover--
       ``(1) the greater of--
       ``(A)(i) the amount of actual damages; multiplied by
       ``(ii) 3; or
       ``(B) $5,000; and
       ``(2) costs and attorneys' fees.''.

     SEC. 204. AUTOMATIC STAY.

       Section 362(h) of title 11, United States Code, is amended 
     to read as follows:
       ``(h)(1) An individual who is injured by any willful 
     violation of a stay provided in this section shall be 
     entitled to recover--
       ``(A) the greater of--
       ``(i)(I) the amount of actual damages; multiplied by
       ``(II) 3; or
       ``(ii) $5,000; and
       ``(B) costs and attorneys' fees.
       ``(2) In addition to recovering actual damages, costs, and 
     attorneys' fees under paragraph (1), an individual described 
     in paragraph (1) may recover punitive damages in appropriate 
     circumstances.''.

     SEC. 205. WHO MAY BE A DEBTOR.

       Section 727 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(f)(1) In any case in which a creditor files a motion to 
     deny relief to a debtor under this section and that motion is 
     denied or withdrawn, the court shall award the debtor 
     reasonable attorneys' fees and costs.
       ``(2) If the court finds that the position of a party 
     filing a motion under this section is not substantially 
     justified, the court shall assess against the creditor for 
     payment to the debtor a payment in an amount equal to the 
     greater of--
       ``(A)(i) the amount of actual damages; multiplied by
       ``(ii) 3; or
       ``(B) $5,000.''.
  TITLE III--IMPROVED PROCEDURES FOR EFFICIENT ADMINISTRATION OF THE 
                           BANKRUPTCY SYSTEM

     SEC. 301. NOTICE OF ALTERNATIVES.

       (a) In General.--Section 342 of title 11, United States 
     Code, is amended by striking subsection (b) and inserting the 
     following:
       ``(b) Before the commencement of a case under this title by 
     an individual whose debts are primarily consumer debts, that 
     individual shall be given or obtain (as required in section 
     521(a)(1), as part of the certification process under 
     subchapter 1 of chapter 5 of this title) a written notice 
     prescribed by the United States trustee for the district in 
     which the petition is filed pursuant to section 586 of title 
     28. The notice shall contain the following:
       ``(1) A brief description of chapters 7, 11, 12, and 13 of 
     this title and the general purpose, benefits, and costs of 
     proceeding under each of those chapters.
       ``(2) A brief description of services that may be available 
     to that individual from an independent nonprofit debt 
     counseling service.
       ``(3)(A) The name, address, and telephone number of each 
     nonprofit debt counseling service with an office located in 
     the district in which the petition is filed, if any.
       ``(B) Any nonprofit debt counseling service described in 
     subparagraph (A) that has registered with the clerk of the 
     bankruptcy court on or before December 10 of the preceding 
     year shall be included in the list referred to in that 
     clause, unless the chief bankruptcy judge of the district 
     involved, after giving notice to the debt counseling service 
     and the United States trustee and opportunity for a hearing, 
     orders, for good cause, that a particular debt counseling 
     service shall not be so listed.''; and
       (b) Debtor's Duties.--Section 521 of title 11, United 
     States Code, is amended--
       (1) by inserting ``(a)'' before ``The debtor shall--'';
       (2) by striking paragraph (1) and inserting the following:
       ``(1) file--
       ``(A) a list of creditors; and
       ``(B) unless the court orders otherwise--
       ``(i) a schedule of assets and liabilities;
       ``(ii) a schedule of current income and current 
     expenditures;
       ``(iii) a statement of the debtor's financial affairs and, 
     if applicable, a certificate--

       ``(I) of an attorney whose name is on the petition as the 
     attorney for the debtor or any bankruptcy petition preparer 
     signing the petition pursuant to section 110(b)(1) of this 
     title indicating that such attorney or bankruptcy petition 
     preparer delivered to the debtor any notice required by 
     section 342(b) of this title; or
       ``(II) if no attorney for the debtor is indicated and no 
     bankruptcy petition preparer signed the petition, of the 
     debtor that such notice was obtained and read by the debtor;

       ``(iv) copies of any Federal tax returns, including any 
     schedules or attachments, filed by the debtor for the 3-year 
     period preceding the order for relief;
       ``(v) copies of all payment advices or other evidence of 
     payment, if any, received by the debtor from any employer of 
     the debtor in the period 60 days prior to the filing of the 
     petition;
       ``(vi) a statement of the amount of projected monthly net 
     income, itemized to show how calculated;
       ``(vii) if applicable, any statement under paragraphs (3) 
     and (4) of section 109(h); and
       ``(viii) a statement disclosing any reasonably anticipated 
     increase in income or expenditures over the 12-month period 
     following the date of filing;''; and
       (3) by adding at the end the following:
       ``(b)(1) At any time, a creditor, in the case of an 
     individual under chapter 7 or 13, may file with the court 
     notice that the creditor requests the petition, schedules, 
     and a statement of affairs filed by the debtor in the case 
     and the court shall make those documents available to the 
     creditor who requests those documents.
       ``(2) At any time, a creditor, in a case under chapter 13, 
     may file with the court notice that the creditor requests the 
     plan filed by the debtor in the case and the court shall make 
     that plan available to the creditor who requests that plan.
       ``(c) An individual debtor in a case under chapter 7 or 13 
     shall file with the court--
       ``(1) at the time filed with the taxing authority, all tax 
     returns, including any schedules or attachments, with respect 
     to the period from the commencement of the case until such 
     time as the case is closed;
       ``(2) at the time filed with the taxing authority, all tax 
     returns, including any schedules or attachments, that were 
     not filed with the taxing authority when the schedules under 
     subsection (a)(1) were filed with respect to the period that 
     is 3 years before the order for relief;
       ``(3) any amendments to any of the tax returns, including 
     schedules or attachments, described in paragraph (1) or (2); 
     and
       ``(4) in a case under chapter 13, a statement subject to 
     the penalties of perjury by the debtor of the debtor's income 
     and expenditures in the preceding tax year and monthly 
     income, that shows how the amounts are calculated--
       ``(A) beginning on the date that is the later of 90 days 
     after the close of the debtor's tax year or 1 year after the 
     order for relief, unless a plan has been confirmed; and
       ``(B) thereafter on or before the date that is 45 days 
     before each anniversary of the confirmation of the plan until 
     the case is closed.
       ``(d)(1) A statement referred to in subsection (c)(4) shall 
     disclose--
       ``(A) the amount and sources of income of the debtor;
       ``(B) the identity of any persons responsible with the 
     debtor for the support of any dependents of the debtor; and
       ``(C) any persons who contributed and the amount 
     contributed to the household in which the debtor resides.
       ``(2) The tax returns, amendments, and statement of income 
     and expenditures described in paragraph (1) shall be 
     available to the United States trustee, any bankruptcy 
     administrator, any trustee, and any party in interest for 
     inspection and copying.''.
       (c) Title 28.--Section 586(a) of title 28, United States 
     Code, is amended--

[[Page S10887]]

       (1) in paragraph (5) by striking ``and'' at the end;
       (2) in paragraph (6) by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(7) on or before January 1 of each calendar year, and 
     also not later than 30 days after any change in the nonprofit 
     debt counseling services registered with the bankruptcy 
     court, prescribe and make available on request the notice 
     described in section 342(b)(3) of title 11 for each district 
     included in the region.''.

     SEC. 302. FAIR TREATMENT OF SECURED CREDITORS UNDER CHAPTER 
                   13.

       Section 1325(a)(5)(B)(i) of title 11, United States Code, 
     is amended to read as follows:
       ``(B)(i) the plan provides that the holder of such claim 
     retain the lien securing such claim until the debt that is 
     the subject of the claim is fully paid for, as provided under 
     the plan; and''.

     SEC. 303. DISCOURAGEMENT OF BAD FAITH REPEAT FILINGS.

       Section 362 of title 11, United States Code, is amended--
       (1) in subsection (c)--
       (A) by inserting ``(1)'' before ``Except as'';
       (B) by striking ``(1) the stay'' and inserting ``(A) the 
     stay'';
       (C) by striking ``(2) the stay'' and inserting ``(B) the 
     stay'';
       (D) by striking ``(A) the time'' and inserting ``(i) the 
     time''; and
       (E) by striking ``(B) the time'' and inserting ``(ii) the 
     time''; and
       (2) by adding at the end the following:
       ``(2) Except as provided in subsections (d) through (f), 
     the stay under subsection (a) with respect to any action 
     taken with respect to a debt or property securing such debt 
     or with respect to any lease shall terminate with respect to 
     the debtor on the 30th day after the filing of the later case 
     if--
       ``(A) a single or joint case is filed by or against an 
     individual debtor under chapter 7, 11, or 13; and
       ``(B) a single or joint case of that debtor (other than a 
     case refiled under a chapter other than chapter 7 after 
     dismissal under section 707(b) of this title) was pending 
     during the preceding year but was dismissed.
       ``(3) If a party in interest so requests, the court may 
     extend the stay in a particular case with respect to 1 or 
     more creditors (subject to such conditions or limitations as 
     the court may impose) after providing notice and a hearing 
     completed before the expiration of the 30-day period 
     described in paragraph (2) only if the party in interest 
     demonstrates that the filing of the later case is in good 
     faith with respect to the creditors to be stayed.
       ``(4) A case shall be presumed to have not been filed in 
     good faith (except that such presumption may be rebutted by 
     clear and convincing evidence to the contrary)--
       ``(A) with respect to the creditors involved, if--
       ``(i) more than 1 previous case under any of chapters 7, 
     11, or 13 of this title in which the individual was a debtor 
     was pending during the 1-year period described in paragraph 
     (1);
       ``(ii) a previous case under any of chapters 7, 11, or 13 
     of this title in which the individual was a debtor was 
     dismissed within the period specified in paragraph (2) 
     after--
       ``(I) the debtor, after having received from the court a 
     request to do so, failed to file or amend the petition or 
     other documents as required by this title; or
       ``(II) the debtor, without substantial excuse, failed to 
     perform the terms of a plan that was confirmed by the court; 
     or
       ``(iii)(I) during the period commencing with the dismissal 
     of the next most previous case under chapter 7, 11, or 13 
     there has not been a substantial change in the financial or 
     personal affairs of the debtor;
       ``(II) if the case is a chapter 7 case, there is no other 
     reason to conclude that the later case will be concluded with 
     a discharge; or
       ``(III) if the case is a chapter 11 or 13 case, there is 
     not a confirmed plan that will be fully performed; and
       ``(B) with respect to any creditor that commenced an action 
     under subsection (d) in a previous case in which the 
     individual was a debtor, if, as of the date of dismissal of 
     that case, that action was still pending or had been resolved 
     by terminating, conditioning, or limiting the stay with 
     respect to actions of that creditor.
       ``(5)(A) If a request is made for relief from the stay 
     under subsection (a) with respect to real or personal 
     property of any kind, and the request is granted in whole or 
     in part, the court may, in addition to making any other order 
     under this subsection, order that the relief so granted shall 
     be in rem either--
       ``(i) for a definite period of not less than 1 year; or
       ``(ii) indefinitely.
       ``(B)(i) After an order is issued under subparagraph (A), 
     the stay under subsection (a) shall not apply to any property 
     subject to such an in rem order in any case of the debtor.
       ``(ii) If an in rem order issued under subparagraph (A) so 
     provides, the stay shall, in addition to being inapplicable 
     to the debtor involved, not apply with respect to an entity 
     under this title if--
       ``(I) the entity had reason to know of the order at the 
     time that the entity obtained an interest in the property 
     affected; or
       ``(II) the entity was notified of the commencement of the 
     proceeding for relief from the stay, and at the time of the 
     notification, no case in which the entity was a debtor was 
     pending.
       ``(6) For purposes of this section, a case is pending 
     during the period beginning with the issuance of the order 
     for relief and ending at such time as the case involved is 
     closed.''.

     SEC. 304. TIMELY FILING AND CONFIRMATION OF PLANS UNDER 
                   CHAPTER 13.

       (a) Filing of Plan.--Section 1321 of title 11, United 
     States Code, is amended to read as follows:

     ``Sec. 1321. Filing of plan

       ``The debtor shall file a plan not later than 90 days after 
     the order for relief under this chapter, except that the 
     court may extend such period if the need for an extension is 
     attributable to circumstances for which the debtor should not 
     justly be held accountable.''.
       (b) Confirmation of Hearing.--Section 1324 of title 11, 
     United States Code, is amended by adding at the end the 
     following: ``That hearing shall be held not later than 45 
     days after the filing of the plan, unless the court, after 
     providing notice and a hearing, orders otherwise.''.

     SEC. 305. APPLICATION OF THE CODEBTOR STAY ONLY WHEN THE STAY 
                   PROTECTS THE DEBTOR.

       Section 1301(b) of title 11, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following:
       ``(2)(A) Notwithstanding subsection (c) and except as 
     provided in subparagraph (B), in any case in which the debtor 
     did not receive the consideration for the claim held by a 
     creditor, the stay provided by subsection (a) shall apply to 
     that creditor for a period not to exceed 30 days beginning on 
     the date of the order for relief, to the extent the creditor 
     proceeds against--
       ``(i) the individual that received that consideration; or
       ``(ii) property not in the possession of the debtor that 
     secures that claim.
       ``(B) In any case described in subparagraph (A), a creditor 
     may not proceed against an individual described in 
     subparagraph (A)(i) or property described in subparagraph 
     (A)(ii), if the debtor who did not receive consideration for 
     the property that is the subject of the claim is able to 
     demonstrate that the receipt of the property was not part of 
     a scheme to defraud or hinder any creditor.
       ``(3) Notwithstanding subsection (c), the stay provided by 
     subsection (a) shall terminate as of the date of confirmation 
     of the plan, in any case in which the plan of the debtor 
     provides that the debtor's interest in personal property 
     subject to a lease with respect to which the debtor is the 
     lessee will be surrendered or abandoned or no payments will 
     be made under the plan on account of the debtor's obligations 
     under the lease.''.

     SEC. 307. IMPROVED BANKRUPTCY STATISTICS.

       (a) Amendment.--Chapter 6 of part I of title 28, United 
     States Code, is amended by adding at the end the following:

     ``Sec. 159. Bankruptcy statistics

       ``(a) The clerk of each district shall compile statistics 
     regarding individual debtors with primarily consumer debts 
     seeking relief under chapters 7, 11, and 13 of title 11. 
     Those statistics shall be in a form prescribed by the 
     Director of the Administrative Office of the United States 
     Courts (referred to in this section as the `Office').
       ``(b) The Director shall--
       ``(1) compile the statistics referred to in subsection (a);
       ``(2) make the statistics available to the public; and
       ``(3) not later than October 31, 1998, and annually 
     thereafter, prepare, and submit to Congress a report 
     concerning the information collected under subsection (a) 
     that contains an analysis of the information.
       ``(c) The compilation required under subsection (b) shall--
       ``(1) be itemized, by chapter, with respect to title 11;
       ``(2) be presented in the aggregate and for each district; 
     and
       ``(3) include information concerning--
       ``(A) the total assets and total liabilities of the debtors 
     described in subsection (a), and in each category of assets 
     and liabilities, as reported in the schedules prescribed 
     pursuant to section 2075 of this title and filed by those 
     debtors;
       ``(B) the current total monthly income, projected monthly 
     net income, and average income and average expenses of those 
     debtors as reported on the schedules and statements that each 
     such debtor files under sections 111, 521, and 1322 of title 
     11;
       ``(C) the aggregate amount of debt discharged in the 
     reporting period, determined as the difference between the 
     total amount of debt and obligations of a debtor reported on 
     the schedules and the amount of such debt reported in 
     categories which are predominantly nondischargeable;
       ``(D) the average period of time between the filing of the 
     petition and the closing of the case;
       ``(E) for the reporting period--
       ``(i) the number of cases in which a reaffirmation was 
     filed; and
       ``(ii)(I) the total number of reaffirmations filed;
       ``(II) of those cases in which a reaffirmation was filed, 
     the number in which the debtor was not represented by an 
     attorney; and
       ``(III) of those cases, the number of cases in which the 
     reaffirmation was approved by the court;
       ``(F) with respect to cases filed under chapter 13 of title 
     11, for the reporting period--
       ``(i)(I) the number of cases in which a final order was 
     entered determining the value of property securing a claim in 
     an amount less than the amount of the claim; and

[[Page S10888]]

       ``(II) the number of final orders determining the value of 
     property securing a claim issued;
       ``(ii) the number of cases dismissed for failure to make 
     payments under the plan; and
       ``(iii) the number of cases in which the debtor filed 
     another case within the 6 years previous to the filing; and
       ``(G) the extent of creditor misconduct and any amount of 
     punitive damages awarded by the court for creditor 
     misconduct.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 6 of title 28, United States Code, is 
     amended by adding at the end the following:

``159. Bankruptcy statistics.''.

       (c) Effective Date.--The amendments made by this section 
     shall take effect 18 months after the date of enactment of 
     this Act.

     SEC. 308. AUDIT PROCEDURES.

       (a) Amendment.--Section 586 of title 28, United States 
     Code, is amended--
       (1) in subsection (a), as amended by section 301 of this 
     Act, by striking paragraph (6) and inserting the following:
       ``(6) make such reports as the Attorney General directs, 
     including the results of audits performed under subsection 
     (f); and''; and
       (2) by adding at the end the following:
       ``(f)(1)(A) The Attorney General shall establish procedures 
     for the auditing of the accuracy and completeness of 
     petitions, schedules, and other information which the debtor 
     is required to provide under sections 521 and 1322 of title 
     11, and, if applicable, section 111 of title 11, in 
     individual cases filed under chapter 7 or 13 of such title.
       ``(B) The audits described in subparagraph (A) shall be 
     made in accordance with generally accepted auditing standards 
     and performed by independent certified public accountants or 
     independent licensed public accountants. Those procedures 
     shall--
       ``(i) establish a method of selecting appropriate qualified 
     persons to contract with the United States trustee to perform 
     those audits;
       ``(ii) establish a method of randomly selecting cases to be 
     audited according to generally accepted auditing standards, 
     except that not less than 1 out of every 50 cases in each 
     Federal judicial district shall be selected for audit;
       ``(iii) require audits for schedules of income and expenses 
     which reflect greater than average variances from the 
     statistical norm of the district in which the schedules were 
     filed; and
       ``(iv) establish procedures for--
       ``(I) reporting the results of those audits and any 
     material misstatement of income, expenditures, or assets of a 
     debtor to the Attorney General, the United States Attorney 
     and the court, as appropriate;
       ``(II) providing, not less frequently than annually, public 
     information concerning the aggregate results of such audits 
     including the percentage of cases, by district, in which a 
     material misstatement of income or expenditures is reported; 
     and
       ``(III) fully funding those audits, including procedures 
     requiring each debtor with sufficient available income or 
     assets to contribute to the payment for those audits, as an 
     administrative expense or otherwise.
       ``(2) The United States trustee for each district is 
     authorized to contract with auditors to perform audits in 
     cases designated by the United States trustee according to 
     the procedures established under paragraph (1) of this 
     subsection.
       ``(3) According to procedures established under paragraph 
     (1), upon request of a duly appointed auditor, the debtor 
     shall cause the accounts, papers, documents, financial 
     records, files and all other papers, things, or property 
     belonging to the debtor as the auditor requests and that are 
     reasonably necessary to facilitate the audit to be made 
     available for inspection and copying.
       ``(4)(A) The report of each audit conducted under this 
     subsection shall be filed with the court, the Attorney 
     General, and the United States Attorney, as required under 
     procedures established by the Attorney General under 
     paragraph (1).
       ``(B) If a material misstatement of income or expenditures 
     or of assets is reported under subparagraph (A), a statement 
     specifying that misstatement shall be filed with the court 
     and the United States trustee shall--
       ``(i) give notice thereof to the creditors in the case; and
       ``(ii) in an appropriate case, in the opinion of the United 
     States trustee, that requires investigation with respect to 
     possible criminal violations, the United States Attorney for 
     the district.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect 18 months after the date of enactment of 
     this Act.

     SEC. 309. CREDITOR REPRESENTATION AT FIRST MEETING OF 
                   CREDITORS.

       Section 341(c) of title 11, United States Code, is amended 
     by inserting after the first sentence the following: 
     ``Notwithstanding any local court rule, provision of a State 
     constitution, any other Federal or State law that is not a 
     bankruptcy law, or other requirement that representation at 
     the meeting of creditors under subsection (a) be by an 
     attorney, a creditor holding a consumer debt or any 
     representative of the creditor (which may include an entity 
     or an employee of an entity and may be a representative for 
     more than one creditor) shall be permitted to appear at and 
     participate in the meeting of creditors in a case under 
     chapter 7 or 13, either alone or in conjunction with an 
     attorney for the creditor. Nothing in this subsection shall 
     be construed to require any creditor to be represented by an 
     attorney at any meeting of creditors.''.

     SEC. 310. FAIR NOTICE FOR CREDITORS IN CHAPTER 7 AND 13 
                   CASES.

       Section 342 of title 11, United States Code, is amended--
       (1) in subsection (c)--
       (A) by striking ``, but the failure of such notice to 
     contain such information shall not invalidate the legal 
     effect of such notice''; and
       (B) by adding at the end the following:
       ``(d)(1) If the credit agreement between the debtor and the 
     creditor or the last communication before the filing of the 
     petition in a voluntary case from the creditor to a debtor 
     who is an individual states an account number of the debtor 
     that is the current account number of the debtor with respect 
     to any debt held by the creditor against the debtor, the 
     debtor shall include that account number in any notice to the 
     creditor required to be given under this title.
       ``(2) If the creditor has specified to the debtor, in the 
     last communication before the filing of the petition, an 
     address at which the creditor wishes to receive 
     correspondence regarding the debtor's account, any notice to 
     the creditor required to be given by the debtor under this 
     title shall be given at such address.
       ``(3) For purposes of this section, the term `notice' shall 
     include--
       ``(A) any correspondence from the debtor to the creditor 
     after the commencement of the case;
       ``(B) any statement of the debtor's intention under section 
     521(a)(2) of this title;
       ``(C) notice of the commencement of any proceeding in the 
     case to which the creditor is a party; and
       ``(D) any notice of a hearing under section 1324 of this 
     title.
       ``(e)(1) At any time, a creditor, in a case of an 
     individual under chapter 7 or 13, may file with the court and 
     serve on the debtor a notice of the address to be used to 
     notify the creditor in that case.
       ``(2) If the court or the debtor is required to give the 
     creditor notice, 5 days after receipt of the notice under 
     paragraph (1), that notice shall be given at that address.
       ``(f) An entity may file with the court a notice stating 
     its address for notice in cases under chapter 7 or 13. After 
     the date that is 30 days following the filing of that notice, 
     any notice in any case filed under chapter 7 or 13 given by 
     the court shall be to that address unless specific notice is 
     given under subsection (e) with respect to a particular case.
       ``(g)(1) Notice given to a creditor other than as provided 
     in this section shall not be effective notice until that 
     notice has been brought to the attention of the creditor.
       ``(2) If the creditor has designated a person or department 
     to be responsible for receiving notices concerning bankruptcy 
     cases and has established reasonable procedures so that 
     bankruptcy notices received by the creditor will be delivered 
     to that department or person, notice shall not be brought to 
     the attention of the creditor until that notice is received 
     by that person or department.''.

     SEC. 311. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13.

       Section 348(f)(1) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B)--
       (A) by striking ``in the converted case, with allowed 
     secured claims'' and inserting ``only in a case converted to 
     chapter 11 or 12 but not in a case converted to chapter 7, 
     with allowed secured claims in cases under chapters 11 and 
     12''; and
       (B) by striking the period and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) with respect to cases converted from chapter 13, the 
     claim of any creditor holding security as of the date of the 
     petition shall continue to be secured by that security unless 
     the full amount of that claim determined under applicable 
     nonbankruptcy law has been paid in full as of the date of 
     conversion, notwithstanding any valuation or determination of 
     the amount of an allowed secured claim made for the purposes 
     of the chapter 13 proceeding.''.

     SEC. 312. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

       Section 362(e) of title 11, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(e); and
       (2) by adding at the end the following:
       ``(2) Notwithstanding paragraph (1), in the case of an 
     individual filing under chapter 7, 11, or 13, the stay under 
     subsection (a) shall terminate on the date that is 60 days 
     after a request is made by a party in interest under 
     subsection (d), unless--
       ``(A) a final decision is rendered by the court during the 
     60-day period beginning on the date of the request; or
       ``(B) that 60-day period is extended--
       ``(i) by agreement of all parties in interest; or
       ``(ii) by the court for such specific period of time as the 
     court finds is required for good cause.''.

     SEC. 313. DISMISSAL FOR FAILURE TO FILE SCHEDULES TIMELY OR 
                   PROVIDE REQUIRED INFORMATION.

       Section 707 of title 11, United States Code, as amended by 
     section 102 of this Act, is further amended by adding at the 
     end the following:

[[Page S10889]]

       ``(c)(1) Notwithstanding subsection (a), and subject to 
     paragraph (2), if an individual debtor in a voluntary case 
     under chapter 7 or 13 fails to file all of the information 
     required under section 521(a)(1) of this title within 45 days 
     after the filing of the petition commencing the case, the 
     case shall be automatically dismissed effective on the 46th 
     day after the filing of the petition.
       ``(2) With respect to a case described in paragraph (1), 
     any party in interest may request the court to enter an order 
     dismissing the case. The court shall, if so requested, enter 
     an order of dismissal not later than 5 days after that 
     request.
       ``(3) Upon request of the debtor made within 45 days after 
     the filing of the petition commencing a case described in 
     paragraph (1), the court may allow the debtor an additional 
     period of not to exceed 20 days to file the information 
     required under section 521(a)(1) of this title if the court 
     finds justification for extending the period for the 
     filing.''.

     SEC. 314. ADEQUATE TIME FOR PREPARATION FOR A HEARING ON 
                   CONFIRMATION OF THE PLAN.

       Section 1324 of title 11, United States Code, is amended--
       (1) by striking ``After'' and inserting the following:
       ``(a) Except as provided in subsection (b) and after''; and
       (2) by adding at the end the following:
       ``(b) If not later than 5 days after receiving notice of a 
     hearing on confirmation of the plan, a creditor objects to 
     the confirmation of the plan, the hearing on confirmation of 
     the plan may be held no earlier than 20 days after the first 
     meeting of creditors under section 341(a) of this title.''.
                    TITLE IV--TECHNICAL CORRECTIONS

     SEC. 401. DEFINITIONS.

       Section 101 of title 11, United States Code, is amended--
       (1) by striking ``In this title--'' and inserting ``In this 
     title:'';
       (2) in each paragraph, by inserting ``The term'' after the 
     paragraph designation;
       (3) in paragraph (35)(B), by striking ``paragraphs (21B) 
     and (33)(A)'' and inserting ``paragraphs (23) and (35)'';
       (4) in each of paragraphs (35A) and (38), by striking ``; 
     and'' at the end and inserting a period;
       (5) in paragraph (51B)--
       (A) by inserting ``who is not a family farmer'' after 
     ``debtor'' the first place it appears; and
       (B) by striking ``thereto having aggregate'' and all that 
     follows through the end of the paragraph;
       (6) by amending paragraph (54) to read as follows:
       ``(54) The term `transfer' means--
       ``(A) the creation of a lien;
       ``(B) the retention of title as a security interest;
       ``(C) the foreclosure of a debtor's equity of redemption; 
     or
       ``(D) each mode, direct or indirect absolute or 
     conditional, voluntary or involuntary, of disposing of or 
     parting with property or with an interest in property;'';
       (7) in each of paragraphs (1) through (35), in each of 
     paragraphs (36) and (37), and in each of paragraphs (40) 
     through (55) (including paragraph (54), as added by paragraph 
     (6) of this section), by striking the semicolon at the end 
     and inserting a period; and
       (8) by redesignating paragraphs (4) through (55) in 
     entirely numerical sequence, so as to result in numerical 
     paragraph designations of (4) through (68).

     SEC. 402. ADJUSTMENT OF DOLLAR AMOUNTS.

       Section 104 of title 11, United States Code, is amended by 
     inserting ``522(f)(3),'' after ``522(d),'' each place it 
     appears.

     SEC. 403. EXTENSION OF TIME.

       Section 108(c)(2) of title 11, United States Code, is 
     amended by striking ``922'' and all that follows through 
     ``or'', and inserting ``922, 1201, or''.

     SEC. 404. WHO MAY BE A DEBTOR.

       Section 109(b)(2) of title 11, United States Code, is 
     amended by striking ``subsection (c) or (d) of''.

     SEC. 405. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY 
                   PREPARE BANKRUPTCY PETITIONS.

       Section 110(j)(3) of title 11, United States Code, is 
     amended by striking ``attorney's'' and inserting ``attorneys' 
     ''.

     SEC. 406. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

       Section 328(a) of title 11, United States Code, is amended 
     by inserting ``on a fixed or percentage fee basis,'' after 
     ``hourly basis,''.

     SEC. 407. SPECIAL TAX PROVISIONS.

       Section 346(g)(1)(C) of title 11, United States Code, is 
     amended by striking ``, except'' and all that follows through 
     ``1986''.

     SEC. 408. EFFECT OF CONVERSION.

       Section 348(f)(2) of title 11, United States Code, is 
     amended by inserting ``of the estate'' after ``property'' the 
     first place it appears.

     SEC. 409. AUTOMATIC STAY.

       Section 362(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (17), by striking ``or'' at the end;
       (2) in paragraph (18), by striking the period at the end 
     and inserting ``; or''; and
       (3) by adding at the end the following:
       ``(19) under subsection (a) of this section of any transfer 
     that is not avoidable under section 544 and that is not 
     avoidable under section 549.''.

     SEC. 410. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

       Section 365 of title 11, United States Code, is amended--
       (1) in subsection (b)(2)--
       (A) in subparagraph (C), by striking ``or'' at the end; and
       (B) by striking subparagraph (D) and inserting the 
     following:
       ``(D) the satisfaction of any penalty rate or penalty 
     provision relating to a default arising from a failure to 
     perform nonmonetary obligations under an executory contract 
     or under an unexpired lease of real or personal property;
       ``(E) the satisfaction of any provision (other than a 
     penalty rate or penalty provision) relating to a default 
     arising from any failure to perform nonmonetary obligations 
     under an unexpired lease of real property, if it is 
     impossible for the trustee to cure such default by performing 
     nonmonetary acts at and after the time of assumption; or
       ``(F) the satisfaction of any provision (other than a 
     penalty rate or penalty provision) relating to a default 
     arising from any failure to perform nonmonetary obligations 
     under an executory contract, if it is impossible for the 
     trustee to cure such default by performing nonmonetary acts 
     at and after the time of assumption and if the court 
     determines, based on the equities of the case, that paragraph 
     (1) should not apply with respect to such default.'';
       (2) in subsection (c)--
       (A) in paragraph (2), by adding ``or'' at the end;
       (B) in paragraph (3), by striking ``or'' at the end and 
     inserting a period; and
       (C) by striking paragraph (4);
       (3) in subsection (d)--
       (A) by striking paragraphs (5) through (9); and
       (B) by redesignating paragraph (10) as paragraph (5); and
       (4) in subsection (f)(1), by striking ``; except that'' and 
     all that follows through the end of the paragraph and 
     inserting a period.

     SEC. 411. AMENDMENT TO TABLE OF SECTIONS.

       The table of sections for chapter 5 of title 11, United 
     States Code, is amended by striking the item relating to 
     section 556 and inserting the following:

``556. Contractual right to liquidate a commodities contract or forward 
              contract.''.

     SEC. 412. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

       Section 503(b)(4) of title 11, United States Code, is 
     amended by inserting ``subparagraph (A), (B), (C), (D), or 
     (E) of'' before ``paragraph (3)''.

     SEC. 413. PRIORITIES.

       Section 507(a) of title 11, United States Code, is 
     amended--
       (1) in paragraph (3)(B), by striking the semicolon at the 
     end and inserting a period; and
       (2) in paragraph (7), by inserting ``unsecured'' after 
     ``allowed''.

     SEC. 414. EXEMPTIONS.

       Section 522 of title 11, United States Code, is amended--
       (1) in subsection (f)(1)(A)(ii)(II)--
       (A) by striking ``includes a liability designated as'' and 
     inserting ``is for a liability that is designated as, and is 
     actually in the nature of,''; and
       (B) by striking ``, unless'' and all that follows through 
     ``support,''; and
       (2) in subsection (g)(2), by striking ``subsection (f)(2)'' 
     and inserting ``subsection (f)(1)(B)''.

     SEC. 415. EXCEPTIONS TO DISCHARGE.

       Section 523 of title 11, United States Code, is amended--
       (1) in subsection (a)(3), by striking ``or (6)'' each place 
     it appears and inserting ``(6), or (15)'';
       (2) as amended by section 304(e) of Public Law 103-394 (108 
     Stat. 4133), in paragraph (15)--
       (A) by inserting ``or'' after the semicolon at the end; and
       (B) by transferring such paragraph so as to insert it after 
     paragraph (14) of subsection (a);
       (3) in paragraph (9), by inserting ``, watercraft, or 
     aircraft'' after ``motor vehicle'';
       (4) in subsection (a)(15), as so redesignated by paragraph 
     (2) of this subsection, by inserting ``to a spouse, former 
     spouse, or child of the debtor and'' after ``(15)'';
       (5) in subsection (a)(17)--
       (A) by striking ``by a court'' and inserting ``on a 
     prisoner by any court'';
       (B) by striking ``section 1915 (b) or (f)'' and inserting 
     ``subsection (b) or (f)(2) of section 1915''; and
       (C) by inserting ``(or a similar non-Federal law)'' after 
     ``title 28'' each place it appears; and
       (6) in subsection (e), by striking ``a insured'' and 
     inserting ``an insured''.

     SEC. 416. EFFECT OF DISCHARGE.

       Section 524(a)(3) of title 11, United States Code, is 
     amended by striking ``section 523'' and all that follows 
     through ``or that'' and inserting ``section 523, 1228(a)(1), 
     or 1328(a)(1) of this title, or that''.

     SEC. 417. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

       Section 525(c) of title 11, United States Code, is 
     amended--
       (1) in paragraph (1), by inserting ``student'' before 
     ``grant'' the second place it appears; and
       (2) in paragraph (2), by striking ``the program operated 
     under part B, D, or E of'' and inserting ``any program 
     operated under''.

[[Page S10890]]

     SEC. 418. PROPERTY OF THE ESTATE.

       Section 541(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (4)--
       (A) in subparagraph (B)(ii), by inserting ``365 or'' before 
     ``542''; and
       (B) by adding ``or'' at the end.

     SEC. 419. LIMITATIONS ON AVOIDING POWERS.

       Section 546 of title 11, United States Code, is amended by 
     redesignating the second subsection (g) (as added by section 
     222(a) of the Bankruptcy Reform Act of 1994; 108 Stat. 4129) 
     as subsection (h).

     SEC. 420. PREFERENCES.

       Section 547 of title 11, United States Code, is amended--
       (1) in subsection (b), by striking ``subsection (c)'' and 
     inserting ``subsections (c) and (i)''; and
       (2) by adding at the end the following:
       ``(i) If the trustee avoids under subsection (b) a security 
     interest given between 90 days and 1 year before the date of 
     the filing of the petition, by the debtor to an entity that 
     is not an insider for the benefit of a creditor that is an 
     insider, such security interest shall be considered to be 
     avoided under this section only with respect to the creditor 
     that is an insider.''.

     SEC. 421. POSTPETITION TRANSACTIONS.

       Section 549(c) of title 11, United States Code, is 
     amended--
       (1) by inserting ``an interest in'' after ``transfer of'';
       (2) by striking ``such property'' and inserting ``such real 
     property''; and
       (3) by striking ``the interest'' and inserting ``such 
     interest''.

     SEC. 422. TECHNICAL AMENDMENT.

       Section 552(b)(1) of title 11, United States Code, is 
     amended by striking ``product'' each place it appears and 
     inserting ``products''.

     SEC. 423. SETOFF.

       Section 553(b)(1) of title 11, United States Code, is 
     amended by striking ``362(b)(14)'' and inserting 
     ``362(b)(17)''.

     SEC. 424. DISPOSITION OF PROPERTY OF THE ESTATE.

       Section 726(b) of title 11, United States Code, is amended 
     by striking ``1009,''.

     SEC. 425. GENERAL PROVISIONS.

       Section 901(a) of title 11, United States Code, is amended 
     by inserting ``1123(d),'' after ``1123(b),''.

     SEC. 426. APPOINTMENT OF ELECTED TRUSTEE.

       Section 1104(b) of title 11, United States Code, is 
     amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) If an eligible, disinterested trustee is elected 
     at a meeting of creditors under paragraph (1), the United 
     States trustee shall file a report certifying that election. 
     Upon the filing of a report under the preceding sentence--
       ``(i) the trustee elected under paragraph (1) shall be 
     considered to have been selected and appointed for purposes 
     of this section; and
       ``(ii) the service of any trustee appointed under 
     subsection (d) shall terminate.
       ``(B) In the case of any dispute arising out of an election 
     under subparagraph (A), the court shall resolve the 
     dispute.''.

     SEC. 427. ABANDONMENT OF RAILROAD LINE.

       Section 1170(e)(1) of title 11, United States Code, is 
     amended by striking ``section 11347'' and inserting ``section 
     11326(a)''.

     SEC. 428. CONTENTS OF PLAN.

       Section 1172(c)(1) of title 11, United States Code, is 
     amended by striking ``section 11347'' and inserting ``section 
     11326(a)''.

     SEC. 429. DISCHARGE UNDER CHAPTER 12.

       Subsections (a) and (c) of section 1228 of title 11, United 
     States Code, are amended by striking ``1222(b)(10)'' each 
     place it appears and inserting ``1222(b)(9)''.

     SEC. 430. CONTENTS OF PLAN.

       Section 1322 of title 11, United States Code, is amended--
       (1) in subsection (b), by striking ``(c)'' and inserting 
     ``(d)''; and
       (2) in subsection (e), by striking ``default, shall'' and 
     inserting ``default shall''.

     SEC. 431. DISCHARGE UNDER CHAPTER 13.

       Paragraphs (1) through (3) of section 1328(a) of title 11, 
     United States Code, are amended to read as follows:
       ``(1) provided for under section 1322(b)(5) of this title;
       ``(2) of the kind specified in paragraph (5), (8), or (9) 
     of section 523(a) of this title; or
       ``(3) for restitution, or a criminal fine, included in a 
     sentence on the debtor's conviction of a crime.''.

     SEC. 432. EXTENSIONS.

       Section 302(d)(3) of the Bankruptcy, Judges, United States 
     Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 
     581 note) is amended--
       (1) in subparagraph (A), in the matter following clause 
     (ii), by striking ``October 1, 2002'' and inserting ``October 
     1, 2012''; and
       (2) in subparagraph (F)--
       (A) in clause (i)--
       (i) in subclause (II), by striking ``October 1, 2002'' and 
     inserting ``October 1, 2012''; and
       (ii) in the matter following subclause (II), by striking 
     ``October 1, 2003'' and inserting ``October 1, 2013''; and
       (B) in clause (ii), in the matter following subclause (II), 
     by striking ``October 1, 2003'' and inserting ``October 1, 
     2013''.

     SEC. 433. BANKRUPTCY CASES AND PROCEEDINGS.

       Section 1334(d) of title 28, United States Code, is 
     amended--
       (1) by striking ``made under this subsection'' and 
     inserting ``made under subsection (c)''; and
       (2) by striking ``This subsection'' and inserting 
     ``Subsection (c) and this subsection''.

     SEC. 434. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

       Section 156(a) of title 18, United States Code, is 
     amended--
       (1) in the first undesignated paragraph--
       (A) by inserting ``(1) the term'' before `` `bankruptcy''; 
     and
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (2) in the second undesignated paragraph--
       (A) by inserting ``(2) the term'' before `` `document''; 
     and
       (B) by striking ``this title'' and inserting ``title 11''.

     SEC. 435. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

       (a) Effective Date.--Except as provided in subsection (b), 
     this title and the amendments made by this title shall take 
     effect on the date of enactment of this Act.
       (b) Application of Amendments.--The amendments made by this 
     title shall apply only with respect to cases commenced under 
     title 11, United States Code, on or after the date of 
     enactment of this Act.

  Mr. DURBIN. Mr. President, I rise today with my distinguished 
colleague, Senator Grassley, to introduce the Consumer Bankruptcy 
Reform Act of 1997. This sensible and bipartisan piece of legislation 
is designed to check many of the serious abuses in the Bankruptcy Code 
while maintaining a workable system.
  Neither Senator Grassley nor I can ignore the evidence that there are 
some people who are taking advantage of the Bankruptcy Code. Their 
numbers may not be great, but every abuse undermines confidence in the 
code. As with all systems, the Bankruptcy Code is subject to abuse. 
People can and will manipulate it. Senator Grassley and I have 
introduced this legislation to attempt to curb many of these abuses. We 
have worked hard to craft a bill that is balanced--that corrects 
creditor and debtor abuses. It also attempts to catch abuses without 
being so harsh that it makes the system unworkable and without turning 
its back on the fundamental principles and good of the Bankruptcy Code.
  Hovering in the background of all that we attempt to do in this 
legislation is the persistent news that personal bankruptcy filings are 
steadily increasing. Last year, personal bankruptcies broke the 1 
million barrier. And this year will be worse. No one sitting in this 
room today can help but shudder at the prospect of 1.3 million personal 
bankruptcies this year.
  The odds are that almost every American knows at least one person who 
has declared bankruptcy. Both Senator Grassley and I vividly remember 
the farm crises of the 1980's when good, hard-working people came to 
the end of the line and were desperately trying to save their homes and 
their children's future. So they declared bankruptcy. We also remember 
the floods that swept through our States not too long ago that left a 
financial catastrophe as deep as the natural catastrophe. We must not 
lose sight of these people.
  This jump in personal bankruptcies in good economic times is 
distressing, in large measure because it is a sign that many people--
people we know--are in trouble.
  As distasteful as bankruptcy is, the fact remains that we need the 
system. We cannot dismantle or radically alter it without doing serious 
damage to our economy, to creditors, and to millions of individuals. 
The cold hard fact is that the bankruptcy system does not just help 
individual debtors. It helps the creditors too. And by and large, it 
works.
  To see how, imagine a world where people could not declare bankruptcy 
when they were in financial straits. In this world, each individual 
creditor would have to file suit in State court when the debtor 
defaulted. Only the first unsecured creditor to the courthouse door 
could get garnished wages to pay off the debt. The secured creditors 
could repossess all of the secured property. Meanwhile, all of the 
remaining creditors would get nothing, and the debtor would be left 
without an automobile, a home, or any assets and with next to no money 
after wage garnishment. There would be very few winners in that 
situation.
  In stark contrast, the Federal bankruptcy system offers creditors and 
debtors a comprehensive system--paid for at public expense--which 
attempts to protect the creditors while also giving the debtor a chance 
to restart his

[[Page S10891]]

life. Without our system, each creditor would be clawing his way 
through the State court system, racking up legal costs, achieving 
virtually nothing, and turning millions of debtors into financial 
outcasts.
  Some people credit our voluntary individual bankruptcy system to the 
English author Daniel Defoe, who in 1697 proposed something akin to our 
current chapter 7. Defoe made some very wise distinctions. He felt 
there was a difference between the ``honest debtor, who fails by 
visible necessity, losses, sickness, decay of trade, or the like'' and 
the ``knavish, designing, or idle, extravagant debtor, who fails 
because wither he has run out his estate in excess, or on purpose to 
cheat and abuse his creditors.''
  He also had something to say about creditors, praising the ``moderate 
creditor, who * * * will hear reasonable and just arguments and 
proposals'' while warning against the ``rigorous severe creditor * * * 
without compassion, full of ill language, passion, and revenge.''
  It took almost 150 years for the American Congress to implement 
Defoe's suggestion, although many individual States had acted before 
then. In 1841, having experienced the Panic of 1837, Daniel Webster 
introduced and passed a bill that allowed individuals to voluntarily 
file for bankruptcy and discharge their debts. It is not surprising 
that the central subject of debate 156 years ago was whether debtors 
who could actually pay their debts would nevertheless try to avoid them 
by declaring bankruptcy. Some things never change.
  Even as we focus on the Bankruptcy Code and its possible abuses, 
however, we should be very careful that we do not obscure a far more 
important and dangerous feature of our consumer economy--the 
proliferation of risky credit. Merely making bankruptcy abuse harder to 
get away with is only a small part of the equation. Another part is 
preventing bankruptcies in the first place by encouraging more 
responsibility from banks as well as consumers.
  Let me make this clear, I am happy to root out abuses in bankruptcy 
and to encourage people to repay as much as possible within the 
bankruptcy system. But I insist that I be met half way--that banks and 
consumers do all they can to encourage healthy lending patterns and 
responsible money management.
  Mr. President, we may never be able to fully understand why 
bankruptcies have jumped so much. But a few things are clear. First, 
personal bankruptcy rates are tied to increased consumer debt burdens. 
The higher the level of credit card debt a person has, the greater the 
chance that the person will declare bankruptcy. And individual consumer 
debt is very high. In 1996, consumers charged more than $1 trillion on 
credit cards. According to the Consumer Federation of America, an 
estimated $374 to $396 billion in debt was being revolved or incurring 
interest obligations.
  To most people, accumulating credit cards seems easy and problem 
free. The waters look awfully enticing when someone sends you a credit 
card. But there is a dangerous undertow. And as people move further 
from the shore, they risk getting caught by the undertow. Essentially 
people are placing themselves on the edge and not leaving enough of a 
margin for dealing with an unexpected fiscal calamity.
  Yet rather than trying to blame anyone for bankruptcies, let us try 
to find a way to avert future bankruptcies. Both halves of the 
bankruptcy equation can and should act more responsibly. For creditors, 
that means providing consumers with enough information to assess the 
risks. For debtors, that means taking a hard look at what they can and 
can't afford.
  People need to know about the deadly undertow associated with credit 
card solicitations. Right now people know more about what is in a box 
of cookies by looking at the nutritional label than they know about 
their credit cards. We need something like nutritional labels for 
credit cards.
  I have previously proposed four important changes to the way people 
get and use credit.
  First, companies should include in each bill to current cardholders 
information that details how long it will take that person paying only 
the minimum to pay off the credit card debt. In addition, the 
information should indicate how much of the overall payment would be 
interest.
  Second, companies soliciting customers should provide the potential 
cardholders with an easy-to-understand worksheet to help them determine 
whether they really can afford more debt. Such a worksheet might 
include calculations of a person's expenses--current unsecured debt, 
home mortgage, rent, and other costs--and a simple formula to help 
people see whether they can or can't afford another card.
  Third, companies should tell people the basis of the offer of more 
credit. When a person gets a preapproved credit card, he or she should 
know that the credit card company has not fully evaluated how more 
consumer debt could affect their overall financial health.
  Finally, credit card companies should provide people who accept their 
card a free copy of their credit report.
  These simple things might help quite a bit. Too many people are 
walking into consumer credit counseling bureaus, bankruptcy lawyers' 
offices, and bankruptcy court without any real understanding of their 
financial situation.
  Mr. President, let me conclude on this note: I am proud to join 
Senator Grassley in introducing this bill and in trying to prevent 
abuses of the Bankruptcy Code. But I believe that we must also work on 
something infinitely more constructive--we must try to help prevent 
financial catastrophes. What I propose is a small step in that 
direction which works on the principle that a well informed consumer is 
best able to protect himself.
                                 ______
                                 
      By Mr. FAIRCLOTH (for himself and Mr. Moynihan):
  S. 1302. A bill to permit certain claims against foreign states to be 
heard in United States courts where the foreign state is a state 
sponsor of international terrorism or where no extradition treaty with 
the state existed at the time the claim arose and where no other 
adequate and available remedies exist; to the Committee on the 
Judiciary.


    the foreign sovereign immunity technical corrections act of 1997

  Mr. FAIRCLOTH. Mr. President, I rise today to introduce a bill 
cosponsored by my esteemed colleague, Senator Moynihan. This bill will 
close a loophole in the law and provide a safeguard for American 
citizens overseas. Last year, Congress amended the Foreign Sovereign 
Immunities Act to provide a remedy in U.S. courts to American citizens 
who are victims of acts of torture and terrorism perpetrated by 
terrorist nations.

  The bill I am introducing today would broaden these antiterrorism 
provisions and send a forceful message to other foreign despots around 
the world that the United States will not tolerate the abuse of human 
rights of its citizens.
  Last year's legislation took an important step to deal with the 
criminal act of terrorism and related human rights protections, 
however, because it targeted only those countries on the State 
Department's terrorist list, there is no available remedy for Americans 
under the Foreign Sovereign Immunities Act when governments of 
countries not on the torture list brutalize U.S. citizens.
  Granted, only a few renegade countries not on the terrorist list 
systematically engage in torture. But our legislation will put these 
tyrants on notice that the United States will not let a legal 
technicality stand in the way of an American citizen bringing suit in 
the United States against his or her tormentor. These ruthless acts 
shall be judged by a court of law and, ultimately, by the opinions of 
mankind.
  Mr. President, I urge Congress to close this loophole. To some it may 
seem like a small detail and the circumstances for such an incident may 
seem improbable, but I have first hand knowledge of two incidents of 
systematic torture, one of which involved a constituent from North 
Carolina living outside the protection of U.S. borders.
  Mr. Scott Nelson was working in Saudi Arabia in 1984 as a systems 
engineer at King Faisal Specialist Hospital. In the course of his 
inspection duties, Mr. Nelson discovered a severe health hazard 
involving the valves that delivered oxygen during various medical 
procedures. He immediately reported the irregularities to his 
supervisors,

[[Page S10892]]

and recommended corrective action be taken.
  To his surprise, Mr. Nelson found his warnings blatantly ignored. 
After taking this to the highest managerial level of the hospital, he 
was summoned to a hospital office, arrested, imprisoned, and ultimately 
interrogated. When he arrived in the interrogation room, Saudi 
officials shackled Mr. Nelson and ultimately tortured him, causing 
lifelong disabilities.
  Mr Nelson was thrown into a rat infested cell where he was denied 
food, water, and sleep for days. At some point, Mr. Nelson was 
presented a document in Arabic and ordered to sign it. Under a Saudi 
threat to arrest Mr. Nelson's wife and child, he signed the document.
  At no time during his 39-day detention was Scott Nelson informed of 
any charges or given the due process right of having his situation 
brought before a court or tribunal.
  After 39 days of this most horrible experience, Mr. Nelson was 
released. He immediately returned to the United States in grave need of 
medical treatment and surgery to his left knee. Since that time, he has 
had five additional surgical procedures.
  Additionally, Mr. Nelson has been diagnosed with diffuse nerve injury 
and posttraumatic stress disorder with symptoms rated as catastrophic. 
Eight physicians and psychologists who have examined Scott are 
unanimous in their judgment that the severe physical and psychological 
injuries from which he suffers are entirely consistent with his 
allegations of torture.
  Mr. President, had this torture taken place in Iraq, Libya, North 
Korea, or any of the nations the State Department has designated as 
``terrorist'' states, he would be entitled to seek damages in a United 
States court. Because Saudi Arabia, like so many other countries, is 
not officially considered a terrorist nation by our State Department, 
there is no remedy for American citizens to seek legal redress for 
injuries resulting from torture.
  Mr. President, Scott Nelson has suffered enough. It is time for his 
government to provide him with a vehicle for relief. The legislation I 
present today is a simple and indisputable proposition: The United 
States shall not tolerate any country in the world to violate the basic 
rights of her citizens. I believe this is legislation that everyone in 
this body can support without hesitation.
  Mr. MOYNIHAN. Mr. President, today I rise as an original sponsor of 
the Foreign Sovereign Immunity Technical Corrections Act of 1997. This 
legislation will extend a provision signed into law as part of the 
Anti-Terrorism Act (Pub. L. 104-132) allowing individuals who are 
victims of terrorism and other violations of international law to file 
suit for damages in United States court.
  The Foreign Sovereign Immunities Act, enacted in 1976, recognizes 
that except in the most egregious cases, foreign states are immune from 
suit by a citizen of the United States. The bill Senator Faircloth and 
I are introducing today establishes the principle that terrorism, 
extrajudicial killing, and other gross abuses of human rights are not 
protected acts of state and are not entitled to sovereign immunity. 
While the Anti-Terrorism Act expanded the Foreign Sovereign Immunities 
Act to allow for suits against countries designated by the Department 
of State as a sponsor of terrorism, this bill would expand the list of 
states to include countries which do not have an extradition treaty 
with the United States, or which do not have an adequate available 
judicial remedy. This provision recognizes that while foreign states 
enjoy immunity from most legal action by individuals, there are certain 
fundamental principles of international law that cannot be violated 
with impunity.
  Two examples of citizens who would gain legal standing by this 
legislation are James Smrkovski and Scott Nelson, Americans who were 
tortured by agents of their foreign state employer, a nation not on the 
list of terrorist states. They survived harrowing experiences only to 
be barred by the Foreign Sovereign Immunities Act from even attempting 
to obtain redress. When the United States Supreme Court said that the 
Foreign Sovereign Immunities Act did not permit Mr. Nelson any legal 
recourse, it made clear that a remedy must come from Congress.
  And so, Mr. President, the Senator from North Carolina [Mr. 
Faircloth] and I are introducing this measure so that Americans who 
have been victims of terrible crimes perpetrated by foreign governments 
have legal recourse. I urge my colleagues to support and cosponsor the 
bill, and I hope it can be adopted without undue delay.
                                 ______
                                 
      By Mr. LIEBERMAN (for himself, Mr. Hagel, Mr. Kerrey, and Mr. 
        Murkowski):
  S. 1303. A bill to encourage the integration of the People's Republic 
of China into the world economy, ensure United States trade interests, 
and establish a strategic working relationship with the People's 
Republic of China as a responsible member of the world community; to 
the Committee on Finance.


             THE UNITED STATES-CHINA RELATIONS ACT OF 1997

  Mr. LIEBERMAN. Mr. President, I am honored to be joined by my 
distinguished colleagues Senators Hagel, Kerrey, and Murkowski to 
introduce the United States-China Relations Act of 1997. I would also 
like to thank Congressman Bereuter whose bill H.R. 1712, we have 
included in this act. The United States-China Relations Act of 1997 is 
legislation that will set us on a course toward more fully integrating 
China into the international community of nations while protecting our 
national economic and political interests and preserving our values.
  We are at a critical juncture in our relations with the People's 
Republic of China. How we choose to manage China's emergence as a major 
global power will profoundly impact the shape of the international 
system in the 21st century, a situation not dissimilar to the late 19th 
and early 20th centuries when Germany, Japan, Russia, and the United 
States emerged to challenge Britain and France for world leadership.
  British and French diplomacy failed although their task was not an 
easy one. Two terrible wars stained the history of this century. We 
must try to do better. We must work to establish an acceptable 
framework for peacefully integrating China into the evolving 
international economic, security, and political systems. And the core 
question is whether to continue on our current path of cooperation and 
integration or choose the path of containment and isolation.
  During this session there has been much debate about which direction 
we should take in our relations with China. Most of the legislation 
that has been introduced regarding China has assumed the worst, 
centered on containment, and favored economic sanctions to remedy a 
host of Chinese transgressions. This policy of containment is 
ultimately premised on a view that China will be our next great enemy.
  Some of my colleagues ask us to pass laws that use punishment as the 
primary tool in our bilateral relationship. These proposals overlook a 
number of realities: the ineffectiveness and unproductiveness of 
punitive legislation in changing China; the importance of maintaining 
and fostering trust and confidence in such an important bilateral 
relationship; the real potential for retaliation by China; and the 
potential upsides of a constructive relationship with China. 
Ultimately, those bills proposing containment of China will neither 
achieve their stated aims of changing China's behavior nor promote 
America's more general national and international interests.
  The rest of the world will not join us in our effort to isolate 
China. That makes containment improbable. Our best policy option is to 
work to integrate China.
  Before rushing to any conclusions about China's intentions, it is 
helpful to take a closer look at its development over the past 20 
years. China has been engaged in a slow but steady effort to integrate 
itself into existing international systems. It has made efforts to be 
active in the United Nations, it has participated in a number of 
multilateral organizations, and has adapted some domestic institutions 
and policies to the demands of the international community.
  I visited China last March with my friend and distinguished 
colleague, Senator Connie Mack of Florida, and was struck by the 
revolutionary changes occurring there. This time the revolution is 
being driven not by Mao's

[[Page S10893]]

little red book, but by the mass quest for cellular telephones and 
personal computers, and incidentally, all the personal freedom of 
communication that goes with them.
  The central government in China is still not tolerant of opposition. 
Political and religious dissidents are in jail. On the other hand, 
average Chinese seem to have lost their fear of open and spirited 
conversations with Westerners. And Senator Mack found the Catholic 
churches during that Holy Week before Easter packed with worshipers.
  The Chinese Government has undertaken a slow but steady deregulation 
of the economy since it allowed for free enterprise in the countryside 
in 1982. Deregulation and the marketization of the Chinese economy has 
led to unprecedented improvements in the living standards--and 
purchasing power--of ordinary Chinese. In the past 15 years, China's 
per capita GDP has more than tripled, from $889 to $2,923, and is 
forecast to be $4,190 in 2000. Not uncoincidentally, China's demand for 
United States exports has increased in similarly substantial leaps. 
United States goods and services exports destined for China have 
increased from $3.7 million in 1980 to $11.1 billion in 1995. China is 
now America's fifth largest trading partner. Similarly, United States 
foreign direct investment in China has increased significantly.
  On the other hand, we have a large and growing trade deficit with 
China that is unacceptable. A prosperous and stable relationship will 
only continue for as long as we have fair access to China's markets.
  On balance, China's economic and political reforms are becoming more, 
not less, consistent with American core values. The transformation of a 
socialist command economy into a controlled market system has allowed 
for the emergence of a new class of entrepreneurs and has promoted 
individuals' freedom to decide what to consume, where to live, what to 
do as a livelihood. The State sector of the economy has steadily 
declined, and increasing numbers of Chinese now work for employers that 
do not answer directly to the central government or the Communist 
Party. This means that the Communist Party's ability to control and 
monitor individual's social, political, and economic lives has 
diminished substantially. Explicit political reforms have been fewer, 
but today there are more local elections being held in China than at 
any other time in its modern history. The legal system has been 
reinvented over the past two decades, and has seen in recent years 
substantial, though still inadequate, improvements in criminal 
procedure and judicial review of administrative abuses. It can be said 
in summary that, the reforms of the past two decades have led to 
increased personal liberty, a strengthened legal system, and the 
beginnings of a civil society, although there is still a very long way 
to go.

  In the clearest and most significant vote about China this year, a 
bipartisan majority in the House of Representatives chose to continue 
China's most-favored-nation trade status. But, after the vote, a flurry 
of bills were introduced expressing congressional opposition to China's 
economic, military, and human rights record. It is unfortunate that the 
Congress is sending mixed messages about this very important bilateral 
relationship.
  To encourage China's current path of reform and development and to 
help ensure that China's inevitable transformation into a global 
economic and strategic power occurs in a way not adverse to United 
States interests or values, the United States must have an active China 
policy that aims at integration instead of isolation, and relies on 
carrots rather than sticks.
  To ensure that our economic interests are met, we need to encourage 
China's increasing integration into international trade and investment 
regimes on commercially viable terms. This should help promote further 
liberalization of the Chinese economy while at the same time increasing 
American access to China's markets and thus decreasing the United 
States-China trade deficit. At the same time, the United States 
Government can more actively promote bilateral economic ties with those 
regions in China where human rights and labor conditions have shown 
improvement. Moreover, we should at every opportunity encourage China 
in the research and development of new energy efficiency and renewable 
energy technologies.
  China's integration in international regimes also promotes American 
strategic interests. The bilateral strategic relationship can be 
strengthened, however, by developing closer exchanges with the Chinese 
military leadership. By opening ongoing lines of communication with the 
military, we will be in a better position to obtain accurate 
information about China's military modernization program. Through such 
proactive measures we will be in a better position to make Beijing more 
accountable for its strategic weapons exports.
  It is time for Congress to end the ambivalence and build a consensus 
for a new China policy. Toward that end, along with my distinguished 
colleagues Senators Hagel, Kerrey, and Murkowski, I am today 
introducing the United States-China Relations Act of 1997.
  This legislation assumes that China will emerge as a superpower in 
the coming decades and become a nation with which the United States can 
and must have cooperative relationships --and that our relationships 
will be more cooperative if our economic, strategic, human rights, and 
environmental relations are viewed as distinct components of a larger, 
mutually-beneficial whole. It is based on a conclusion that China today 
is different from the China of the Cultural Revolution two decades ago 
and the China of Tiananmen Square a decade ago.
  Here are some of the key provisions of the United States-China 
Relations Act of 1997:
  Require an annual accounting of our economic relationship with China. 
Despite the growing significance of our trade relationship, barriers to 
U.S. exports should not be tolerated. The President would be required 
to submit an annual Economic Balance of Benefits Study to the Congress. 
The report would analyze the impact of existing bilateral trade 
agreements with China on United States employment, balance of trade, 
and United States international competitiveness.
  Encourage China's integration into multilateral economic 
organizations. Just as it is important to have enforcement sticks, 
there should be carrots to encourage China's international economic 
integration. The bill requires the President to develop criteria for 
support of China's participation in the Organization for Economic 
Cooperation and Development and G-7 meetings, two groups that China is 
far from being accepted into, but in which it aspires to membership.
  Give China permanent MFN upon accession to the WTO. First, I would 
like to credit Congressman Bereuter for this innovative idea. This 
provision seeks to induce China to grant United States exporters 
adequate trade benefits and/or make significant progress toward WTO 
membership by authorizing a tariff increase on imports from China if 
those conditions are not met and by granting permanent MFN status once 
China becomes a WTO member.
  Require greater information on energy and national security issues. 
The President should establish a bilateral United States-China 
committee on energy security and one for food security. These 
committees would help develop a bilateral policy for securing a stable 
supply of energy from politically volatile regions and securing food 
for China's large population. The bill also includes a sense-of-the-
Senate resolution that the President and Congress continue to expand 
contact and exchanges between United States and Chinese national 
security personnel.
  Establish a commission to promote the rule of law, respect for 
individual rights, religious tolerance, and civil society in China. 
This includes a bilateral commission on human rights with China; an 
exchange of legal professionals, government staff and religious 
leaders; and multilateral action on human and workers' rights. This 
last provision would include a prisoner information registry with 
information on all political prisoners, prisoners of conscience and 
prisoners of faith. The commission could recommend the imposition of 
specified sanctions to the President for human rights violations.
  There is one provision more than any other that characterizes the 
tone and thrust of this act. It calls for the formation of a commission 
to prepare a profile of China province by province.

[[Page S10894]]

 This profile then would serve as a basis for consideration of 
transactions with China by the Export-Import Bank and the Overseas 
Private Investment Corporation in those identified provinces.
  This provision is particularly helpful in improving and strengthening 
our relations with China. By opening up OPIC programs to regions that 
have acceptable human rights, labor, and environmental standards, we 
are increasing investment into China at the same time we are advancing 
our values. It is a provision that encourages China to improve its 
human rights record without punitive economic sanctions. It uses a 
carrot instead of a stick.
  America's economic and strategic interests, as well as our 
fundamental values, are best served by encouraging China on its path of 
economic and political reform.
  China's geopolitical and economic rise are inevitable developments. 
How we react to China's transformation and manage the bilateral 
relationship, however, is within our discretion. United States-China 
relations are at a critical turning point, and the real challenge 
before us now is how to peacefully integrate China into the world 
community, and work with China to ensure world prosperity and stability 
in the 21st century.
  Mr. President, I ask unanimous consent that the United States-China 
Relations Act of 1997 which I am proud to introduce with Senators 
Hagel, Kerrey, and Murkowski be placed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1303

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``United 
     States-China Relations Act of 1997''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Declaration of policy.
Sec. 3. Definitions.

                    TITLE I--ECONOMIC NORMALIZATION

                     Subtitle A--General Provisions

Sec. 101. Congressional findings.
Sec. 102. Statements of policy.
Sec. 103. Reports to Congress.
Sec. 104. Bilateral economic relations.
Sec. 105. Multilateral economic relations.
Sec. 106. Use of funds for commercial and consular presence.

    Subtitle B--United States-China Trade and Investment Commission

Sec. 111. United States-China Trade and Investment Commission.
Sec. 112. Study and report.
Sec. 113. Powers of the Commission.
Sec. 114. Staff and consultants.
Sec. 115. Termination.
Sec. 116. Investment treatment for United States business.

                     TITLE II--STRATEGIC RELATIONS

Sec. 201. Congressional findings.
Sec. 202. Statements of policy.
Sec. 203. Reports to Congress.
Sec. 204. Bilateral strategic relations.
Sec. 205. Multilateral strategic relations.
Sec. 206. Enforcement of the Iran-Iraq Non-Proliferation Act.

                        TITLE III--HUMAN RIGHTS

                     Subtitle A--General Provisions

Sec. 301. Congressional findings.
Sec. 302. Statement of policy.
Sec. 303. Radio Free Asia; National Endowment for Democracy.
Sec. 304. Multilateral human rights.

                 Subtitle B--Human Relations Commission

Sec. 311. Human Relations Commission.
Sec. 312. Functions of the Commission.
Sec. 313. Staff.
Sec. 314. Termination.

     SEC. 2. DECLARATION OF POLICY.

       It is the policy of the United States to--
       (1) encourage the integration of the People's Republic of 
     China into the global economy and community of nations;
       (2) craft an economic, political, and strategic 
     relationship with the People's Republic of China which builds 
     mutual trust and encourages transparency;
       (3) cooperate with the People's Republic of China on 
     regional and global political and strategic issues, and to 
     encourage the constructive interdependence of the People's 
     Republic of China in the Asia Pacific region;
       (4) recognize the sovereignty of the People's Republic of 
     China, and oppose any unilateral change in the status quo of 
     ``one China policy'', especially with respect to the Republic 
     of China on Taiwan;
       (5) continue a close relationship with the Special 
     Administrative Region of Hong Kong; and
       (6) enforce the Hong Kong Policy Act and any other 
     provision that relates to the protection of civil liberties 
     and the rule of law in Hong Kong.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Trade representative.--The term ``Trade 
     Representative'' means the United States Trade 
     Representative.
       (2) World trade organization.--The term ``World Trade 
     Organization'' means the organization established pursuant to 
     the WTO Agreement.
       (3) WTO agreement.--The term ``WTO Agreement'' means the 
     Agreement Establishing The World Trade Organization entered 
     into on April 15, 1994.
                    TITLE I--ECONOMIC NORMALIZATION
                     Subtitle A--General Provisions

     SEC. 101. CONGRESSIONAL FINDINGS.

       Congress makes the following findings:
       (1) The People's Republic of China is the world's tenth 
     largest trading nation and the United States' fifth largest 
     trading partner. United States exports to the People's 
     Republic of China have quadrupled over the past decade. At 
     least 170,000 Americans owe their jobs to United States 
     exports to the People's Republic of China. Jobs related to 
     exported goods, on average, pay 13 to 16 percent more than 
     nonexport related jobs.
       (2) The United States is the People's Republic of China's 
     largest export market. United States imports from the 
     People's Republic of China were nearly $51,500,000,000 in 
     1996 (or nearly 25 percent of the exports of the People's 
     Republic of China). By contrast, United States exports of 
     goods to the People's Republic of China stood at only 
     $12,000,000,000. While the large trade deficit with the 
     People's Republic of China is the result of many factors, the 
     People's Republic of China's multiple, overlapping barriers 
     to trade and investments are a serious concern.
       (3) In the coming decade, the rapid economic expansion of 
     the People's Republic of China will exert a powerful 
     influence on the global economy. In order to be constructive, 
     the emergence of the People's Republic of China as an 
     economic power should be compatible with the existing 
     multilateral economic regime.
       (4) Since the bilateral Memorandum of Understanding between 
     the United States and the People's Republic of China signed 
     in October 1992, the People's Republic of China has 
     eliminated import restrictions on more than 1,000 tariff 
     categories and opened its market to computers, heavy 
     machinery, and pharmaceutical products.
       (5) However, the People's Republic of China still maintains 
     many barriers to the sale of foreign products and United 
     States firms still do not have access comparable to that 
     which the People's Republic of China enjoys in the United 
     States. Sectors such as agriculture, telecommunications, 
     insurance, distribution, audio-visual, advertising, and 
     maintenance and repair need to be opened to international 
     trade.
       (6) Since 1995, the People's Republic of China has made 
     significant progress in concluding agreements in the 
     enforcement of intellectual property rights.
       (7) Despite significant improvements in enforcement, 
     serious problems still remain. Piracy of computer software 
     remains at high levels. While market access for copyrighted 
     products has improved, further improvement is required for 
     legitimate products to be available to meet market demand.

     SEC. 102. STATEMENTS OF POLICY.

       It is the policy of the United States--
       (1) to encourage a fair and equitable economic relationship 
     that ensures equal market access between the United States 
     and the People's Republic of China;
       (2) to support the accession of the People's Republic of 
     China to the World Trade Organization on commercially viable 
     terms, which include commitments on opening up the 
     agricultural market of the People's Republic of China, 
     concessions on trading rights, lower tariffs, access to 
     distribution networks, and elimination of import inhibiting 
     standards;
       (3) for importers of goods or services to affirm that such 
     products or services were not manufactured or procured in a 
     manner inconsistent with United States law or otherwise 
     incompatible with the values of the United States; and
       (4) for United States persons conducting business in the 
     People's Republic of China to refrain from using oppressive 
     instrumentalities of the state to oppose worker's efforts to 
     organize.

     SEC. 103. REPORTS TO CONGRESS.

       (a) In General.--Not later than 180 days after the date of 
     enactment of this Act, and annually thereafter, the Trade 
     Representative shall, in consultation with the International 
     Trade Commission and the Department of Commerce, prepare and 
     submit to Congress a study showing the economic benefits that 
     existing bilateral trade agreements between the United States 
     and the People's Republic of China have on United States 
     employment, balance of trade, and international 
     competitiveness.
       (b) Military Activities.--
       (1) In general.--The Secretary of State, in consultation 
     with the Secretary of Defense, the Secretary of Commerce, and 
     the head of any other appropriate intelligence agencies, 
     shall, not later than 180 days after the date of enactment of 
     this Act, and annually thereafter, prepare and submit to 
     Congress a report on the commercial activities of the 
     People's Liberation Army in the United States and the 
     People's Republic of China. The report shall highlight the 
     activities that provide off-budget revenue for military 
     modernization.
       (2) Confidentiality.--The Secretary of Defense, the 
     Secretary of Commerce, and the

[[Page S10895]]

     head of any intelligence agency may separately submit 
     information regarding the report to Congress in confidence if 
     such Secretary or agency head considers confidentiality 
     appropriate.

     SEC. 104. BILATERAL ECONOMIC RELATIONS.

       (a) Investment Treaty.--Not later than 180 days after the 
     date of enactment of this Act, the Trade Representative shall 
     assess the feasibility of entering into a bilateral 
     investment treaty with the People's Republic of China and 
     shall advise Congress of the results of the assessment.
       (b) Tax Treaty.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of the Treasury shall 
     assess the feasibility of entering into a bilateral tax 
     treaty with the People's Republic of China and shall advise 
     Congress of the results of the assessment.
       (c) Report on Joint Commissions.--
       (1) Review.--Not later than 180 days after the date of 
     enactment of this Act, and annually thereafter, the President 
     shall review the functions and objectives of each United 
     States-China Joint Commission and shall submit for 
     congressional review a program plan that identifies the 
     objectives of each Commission and the resources required to 
     achieve those objectives.
       (2) Joint commissions.--For purposes of this subsection, 
     the term ``United States-China Joint Commission'' means--
       (A) the United States-China Joint Commission on Commerce 
     and Trade,
       (B) the United States-China Joint Economic Commission, and
       (C) the United States-China Joint Commission on Science and 
     Technology.

     SEC. 105. MULTILATERAL ECONOMIC RELATIONS.

       (a) Statement of Purpose.--It is the purpose of this 
     section--
       (1) to authorize the President of the United States to 
     raise tariffs on imports from the People's Republic of China 
     to tariff levels in effect on December 31, 1994, if the 
     President determines, upon the expiration of the 1979 United 
     States bilateral agreement with the People's Republic of 
     China, that the People's Republic of China is either denying 
     adequate trade benefits to the United States or not taking 
     steps to become a full member of the World Trade 
     Organization;
       (2) to provide a significant incentive for the People's 
     Republic of China to gain admission to the World Trade 
     Organization by eliminating the annual review of China's 
     trade status after it commits to a commercially acceptable 
     protocol and is admitted to the World Trade Organization; and
       (3) therefore to enhance the ability of the President of 
     the United States to negotiate a commercially acceptable 
     World Trade Organization protocol with the People's Republic 
     of China.
       (b) Snap-Back Mechanism.--
       (1) Determination with respect to the people's republic of 
     china.--Upon the expiration of the 1979 United States 
     bilateral agreement with the People's Republic of China, the 
     President shall, after consulting with the appropriate 
     congressional committees, determine whether or not the 
     People's Republic of China is--
       (A) according adequate trade benefits to the United States, 
     including substantially equal competitive opportunities for 
     the commerce of the United States; and
       (B) taking adequate steps or making significant proposals 
     to become a WTO member.
       (2) Submission of findings.--Not later than 180 days after 
     the expiration of the 1979 United States bilateral agreement 
     with the People's Republic of China, the President shall 
     submit to the appropriate congressional committees a report 
     setting forth his determinations under subparagraphs (A) and 
     (B) of paragraph (1), with a rationale for each 
     determination.
       (3) Tariff increase.--
       (A) Imposition of increase.--If the President determines 
     either--
       (i) under subparagraph (A) of paragraph (1) that the 
     People's Republic of China is not according adequate trade 
     benefits to the United States, or
       (ii) under subparagraph (B) of paragraph (1) that the 
     People's Republic of China is not taking adequate steps or 
     making significant proposals to become a WTO member,

     then the President shall proclaim, within 180 days after the 
     date of that determination, an increase in the rate of duty 
     with respect to 1 or more products of that country to not 
     more than the column 1 rate of duty under the Harmonized 
     Tariff Schedule of the United States that applied to the 
     article or articles on December 31, 1994.
       (B) Termination of increase.--The President shall terminate 
     any increase in the rate of duty imposed under subparagraph 
     (A) on the earlier of--
       (i) the date on which the People's Republic of China 
     becomes a WTO member; or
       (ii) the date on which the President proclaims that--

       (I) the People's Republic of China is according adequate 
     trade benefits to the United States, including substantially 
     equal competitive opportunities for the commerce of the 
     United States; and
       (II) the People's Republic of China is taking adequate 
     steps or making significant proposals to become a WTO member.

       (C) Modification of tariff.--The President may modify any 
     increase in the rate of duty imposed under subparagraph (A) 
     if the President notifies the appropriate congressional 
     committees of the modification and the reasons therefor, 
     except that--
       (i) the modification may not result in a rate of duty 
     higher than that permitted under subparagraph (A); and
       (ii) the authority of this subparagraph may not be used to 
     terminate an increase in the rate of duty imposed under 
     subparagraph (A).
       (c) Accession to the World Trade Organization.--On the date 
     on which the People's Republic of China becomes a WTO member, 
     the provisions of title IV of the Trade Act of 1974 shall 
     cease to apply to that country, and nondiscriminatory 
     treatment shall apply to the products of that country.
       (d) Participation in OECD.--The President shall--
       (1) develop criteria for supporting the People's Republic 
     of China's participation in the Organization for Economic 
     Cooperation and Development and the G-7 meetings; and
       (2) when appropriate, initiate discussions with other 
     members of the Organization for Economic Cooperation and 
     Development and the G-7 regarding the People's Republic of 
     China's participation.
       (e) Definition.--As used in this section, the term ``WTO 
     member'' has the meaning given that term in section 2(10) of 
     the Uruguay Round Agreements Act (19 U.S.C. 3501(10)).

     SEC. 106. USE OF FUNDS FOR COMMERCIAL AND CONSULAR PRESENCE.

       Of the amounts authorized to be appropriated to the 
     Department of State under the appropriations account entitled 
     ``Administration of Foreign Affairs'' and of the amounts 
     appropriated to the Department of Commerce for the United 
     States and Foreign Commercial Service, $25,000,000 for fiscal 
     year 1999, and $75,000,000 for fiscal year 2000, may be used 
     to strengthen and expand the United States consular and 
     commercial presence in the People's Republic of China to 
     additional cities. The President, through the Director of the 
     Office of Management and Budget, shall determine the 
     allocation of funds to be used in any fiscal year to carry 
     out the provisions of this section.
    Subtitle B--United States-China Trade and Investment Commission

     SEC. 111. UNITED STATES-CHINA TRADE AND INVESTMENT 
                   COMMISSION.

       (a)  In General.--There is established a United States-
     China Trade and Investment Commission (referred to in this 
     title as the ``Commission'').
       (b) Membership.--
       (1) Composition.--The Commission shall be bipartisan and 
     composed of 17 members, including--
       (A) 3 individuals appointed by the President from the 
     executive branch of the government;
       (B) 2 individuals appointed by the President pro tempore of 
     the Senate, upon the recommendation of the majority and 
     minority leaders of the Senate;
       (C) 2 individuals appointed by the Speaker of the House of 
     Representatives, in consultation with the minority leader of 
     the House of Representatives;
       (D) 7 individuals from private business appointed by the 
     Secretary of Commerce; and
       (E) 3 individuals from nonprofit organizations appointed by 
     the Secretary of Commerce.
       (2) Appointment.--The members of the Commission shall be 
     appointed not later than 6 months after the date of enactment 
     of this Act.
       (c) Chairperson.--The Secretary of Commerce shall select a 
     Chairperson from among the private business members.
       (d) Term of Office.--Members shall be appointed for the 
     life of the Commission.
       (e) Vacancies.--Any vacancy occurring in the membership of 
     the Commission shall be filled in the same manner as the 
     original appointment for the position being vacated. The 
     vacancy shall not affect the power of the remaining members 
     to execute the duties of the Commission.
       (f) Compensation and Expenses.--
       (1) Compensation.--Each member of the Commission who is not 
     an employee of the Federal Government shall receive 
     compensation at the daily equivalent of the rate specified 
     for level V of the Executive Schedule under section 5316 of 
     title 5, United States Code, for each day the member is 
     engaged in the performance of duties for the Commission, 
     including attendance at meetings and conferences of the 
     Commission, and travel to conduct the duties of the 
     Commission.
       (2) Travel expenses.--Each member of the Commission shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, for each day the member is engaged in the performance 
     of duties away from the home or regular place of business of 
     the member.

     SEC. 112. STUDY AND REPORT.

       (a) Study.--The Commission shall conduct a study of--
       (1) business practices employed by United States and 
     foreign persons conducting business in the People's Republic 
     of China;
       (2) human rights, labor, and environmental conditions in 
     each province of the People's Republic of China based on 
     criteria set forth in title IV of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2191 et seq.) relating to insurance, 
     financing, guarantees, and reinsurance by the Overseas 
     Private Investment Corporation;
       (3) other circumstances associated with the development of 
     rule of law and civil society in the People's Republic of 
     China;
       (4) opportunities for bilateral cooperation for improving 
     ecosystem management and

[[Page S10896]]

     pollution control, and for integrating policies that have 
     environmental impact in the People's Republic of China; and
       (5) opportunities for developing voluntary environmental 
     guidelines for industrial suppliers located in the People's 
     Republic of China, including the implementation of ISO 14000 
     environmental management standards of the International 
     Organization of Standards.
       (b) Report.--Not later than 12 months after the date of 
     enactment of this Act, and annually thereafter, the 
     Commission shall prepare and submit to the President and the 
     appropriate committees of Congress a written report 
     containing--
       (1) the findings and conclusions of the Commission 
     resulting from the study conducted under subsection (a);
       (2) the recommendations of the Commission, based on the 
     findings and conclusions described in paragraph (1), for--
       (A) improving opportunities for United States business in 
     the People's Republic of China; and
       (B) developing bilateral cooperation between the United 
     States and the People's Republic of China relating to labor 
     and environment; and
       (3) a list of provinces in the People's Republic of China 
     that meet the criteria of the Overseas Private Investment 
     Corporation for insurance, financing, guarantees, and 
     reinsurance described in subsection (a)(2).
       (c) Appropriate Committees.--For purposes of this section, 
     the term ``appropriate committees'' means the Committees on 
     Finance and Foreign Relations of the Senate and the 
     Committees on Ways and Means and International Relations of 
     the House of Representatives.

     SEC. 113. POWERS OF THE COMMISSION.

       (a) In General.--The Commission is authorized to--
       (1) hold such hearings and sit and act at such times;
       (2) take such testimony;
       (3) have such printing and binding done;
       (4) enter into such contracts and other arrangements;
       (5) make such expenditures; and
       (6) take such other actions;

     as the Commission may determine to be necessary to carry out 
     the duties of the Commission.
       (b) Obtaining Information From Federal Agencies.--The 
     Commission may secure directly from any Federal agency such 
     information as the Commission may require to carry out its 
     duties.
       (c) Gifts and Donations.--The Commission may accept, use, 
     and dispose of gifts or donations of property in order to 
     carry out the duties of the Commission.
       (d) Use of Mail.--The Commission may use the United States 
     mails in the same manner and under the same conditions as 
     Federal agencies.

     SEC. 114. STAFF AND CONSULTANTS.

       (a) Staff.--
       (1) Appointment and compensation.--The Commission may 
     appoint and determine the compensation of such staff as the 
     Commission determines to be necessary to carry out the duties 
     of the Commission.
       (2) Limitations.--The rate of compensation for each staff 
     member shall not exceed the daily equivalent of the rate 
     specified for level V of the Executive Schedule under section 
     5316 of title 5, United States Code, for each day the staff 
     member is engaged in the performance of duties for the 
     Commission. The Commission may otherwise appoint and 
     determine the compensation of staff without regard to the 
     provisions of title 5, United States Code, that govern 
     appointments in the competitive service, and the provisions 
     of chapter 51 and subchapter III of chapter 53 of title 5, 
     United States Code, that relate to classification and General 
     Schedule pay rates.
       (b) Experts and Consultants.--The Chairperson of the 
     Commission may obtain such temporary and intermittent 
     services of experts and consultants and compensate the 
     experts and consultants in accordance with section 3109(b) of 
     title 5, United States Code, as the Commission determines to 
     be necessary to carry out the duties of the Commission.
       (c) Detail of Federal Employees.--On the request of the 
     Chairperson of the Commission, the head of any Federal agency 
     shall detail, without reimbursement, any of the personnel of 
     the agency to the Commission to assist the Commission in 
     carrying out its duties. Any detail shall not interrupt or 
     otherwise affect the civil service status or privileges of 
     the Federal employee.
       (d) Technical Assistance.--On the request of the 
     Chairperson of the Commission, the head of a Federal agency 
     shall provide such technical assistance to the Commission as 
     the Commission determines to be necessary to carry out its 
     duties.

     SEC. 115. TERMINATION.

       The Commission shall terminate on the date that is 2 years 
     after the date of enactment of this Act.

     SEC. 116. INVESTMENT TREATMENT FOR UNITED STATES BUSINESS.

       (a) In General.--The Export-Import Bank, the Overseas 
     Private Investment Corporation, and other United States 
     agencies shall take into consideration the study and report 
     conducted under this subtitle in funding any transaction with 
     the People's Republic of China.
       (b) Amendment to Export-Import Bank Act.--Section 
     2(b)(2)(D)(i) of the Export-Import Bank Act (12 U.S.C. 
     635(b)(2)(D)(i)) is amended by adding at the end the 
     following new sentence: ``Subparagraph (A) shall not apply to 
     guarantees, insurance, or extensions of credit by the Bank to 
     a province of the People's Republic of China if the United 
     States-China Trade and Investment Commission determines that 
     the province meets the criteria for insurance, financing, 
     guarantees, and reinsurance of the Overseas Private 
     Investment Corporation set forth in title IV of the Foreign 
     Assistance Act of 1961.''.
       (c) Overseas Private Investment Corporation.--Section 239 
     of the Foreign Assistance Act of 1961 (22 U.S.C 2199) is 
     amended by adding at the end the following new subsection:
       ``(l) Notwithstanding any other provision of law, the 
     Corporation may insure, reinsure, guarantee, or finance a 
     project in the People's Republic of China if the United 
     States-China Trade and Investment Commission determines that 
     the province in which such project is located meets the 
     criteria for insurance, financing, guarantees, and 
     reinsurance set forth in this title.''.
                     TITLE II--STRATEGIC RELATIONS

     SEC. 201. CONGRESSIONAL FINDINGS.

       Congress makes the following findings:
       (1) The United States and the People's Republic of China 
     share mutual security interests in the Asia Pacific region 
     (including the Korean peninsula) as well as other areas of 
     the world such as the Middle East.
       (2) While the People's Liberation Army poses no direct 
     military threat to the United States now, its sales of 
     weapons and weapons technology to sponsors of terrorism, such 
     as Iran, endangers the regional stability and global 
     interests of the United States.
       (3) The People's Liberation Army is engaging in a military 
     buildup and an aggressive military modernization program, for 
     undisclosed purposes. In fact since 1992, military spending 
     by the People's Republic of China has doubled.
       (4) The People's Liberation Army is engaging in commercial 
     activities both at home and abroad. The revenues from these 
     commercial activities are used for military expenditures and 
     obscure actual military expenditures by the People's Republic 
     of China.
       (5) In March 1996, the People's Republic of China 
     demonstrated its capacity to blockade the international 
     shipping lanes of the Taiwan Strait and the air space over 
     Taiwan by the repeated launches of M-9 ballistic missiles in 
     the South China Sea.
       (6) In May 1996, Poly Technologies, a People's Liberation 
     Army enterprise, and Norinco, a Chinese civilian defense 
     company, attempted to smuggle 2,000 AK-47's into Oakland, 
     California and offered to sell to Federal undercover agents 
     300,000 machine guns with silencers, 66mm mortars, hand 
     grenades, and Red Parakeet surface-to-air missiles.
       (7) The People's Liberation Army's buildup, modernization, 
     and economic activities may pose a regional threat and a 
     threat to broader United States interests in the future 
     unless greater efforts are made to increase communication and 
     transparency of process.

     SEC. 202. STATEMENTS OF POLICY.

       It is the policy of the United States--
       (1) to encourage the political and military integration of 
     the People's Republic of China into the Asia Pacific region 
     and the larger global community of nations;
       (2) to maintain a strong United States presence in the Asia 
     Pacific region and to encourage cooperation between the 
     United States, the People's Republic of China, and other 
     nations;
       (3) to encourage transparency in military funding in the 
     People's Republic of China to the greatest extent possible; 
     and
       (4) to engage in confidence building measures between the 
     United States and the People's Republic of China in order to 
     reduce the risk of unintended conflict.

     SEC. 203. REPORTS TO CONGRESS.

       Not later than 180 days after the date of enactment of this 
     Act, the Secretaries of State, Defense, and Commerce, along 
     with the heads of other intelligence agencies, shall provide 
     Congress with--
       (1) a report analyzing the effectiveness of existing 
     weapons proliferation export controls and sanctions relating 
     to the People's Republic of China; and
       (2) a report describing economic, political, and military 
     espionage conducted by the People's Republic of China against 
     the United States.

     The Secretaries of State, Defense, and Commerce, and the head 
     of any other intelligence agency may separately submit any 
     information regarding the reports to Congress in confidence 
     if such Secretary or agency head considers confidentiality 
     appropriate.

     SEC. 204. BILATERAL STRATEGIC RELATIONS.

       (a) Sense of the Senate.--It is the sense of the Senate 
     that the President should continue and expand contact and 
     exchanges between national security personnel from the United 
     States and of the People's Republic of China.
       (b) Energy Bilateral.--The President shall take steps to 
     establish a bilateral committee with the People's Republic of 
     China in order to begin a dialogue relating to the 
     maintenance of stability in regions where there are energy 
     resources of mutual interest to the United States and the 
     People's Republic of China.
       (c) Food Bilateral.--The President shall take steps to 
     establish a bilateral committee with the People's Republic of 
     China in order to begin a dialogue relating to--
       (1) common interests in the People's Republic of China's 
     securing a stable and adequate supply of food, and

[[Page S10897]]

       (2) the interests of the United States as a supplier of 
     food to the People's Republic of China.

     SEC. 205. MULTILATERAL STRATEGIC RELATIONS.

       The President shall take steps to establish a multilateral 
     risk reduction protocol with the People's Republic of China 
     and other governments in East Asia. The protocol shall 
     provide policies and procedures that include--
       (1) establishing a line of direct communication between 
     Washington and the People's Republic of China; and
       (2) developing a protocol for naval encounters in 
     international waters.

     SEC. 206. ENFORCEMENT OF THE IRAN-IRAQ NON-PROLIFERATION ACT.

       It is the sense of the Senate that the security and 
     stability of the Near East is threatened by any augmentation 
     of weapons inventories by Iran and Iraq and the President 
     should vigilantly enforce the provisions of the Iran-Iraq 
     Arms Non-Proliferation Act of 1992.
                        TITLE III--HUMAN RIGHTS
                     Subtitle A--General Provisions

     SEC. 301. CONGRESSIONAL FINDINGS.

       Congress makes the following findings:
       (1) Congress concurs in the following conclusions of the 
     Department of State regarding human rights in the People's 
     Republic of China:
       (A) The Government of the People's Republic of China has 
     ``continued to commit widespread and well documented human 
     rights abuses, in violation of internationally accepted 
     norms, stemming from the authorities intolerance of dissent, 
     fear of unrest, and the absence and inadequacy of laws 
     protecting basic freedoms.''
       (B) Nonapproved religious groups, including Protestant and 
     Catholic groups, experienced intensified repression.
       (C) Overall in 1996, the authorities stepped up efforts to 
     cut off expressions of protest or criticism. No dissidents 
     were known to be active at year's end.
       (2) Despite public assurances by the People's Republic of 
     China that it would abide by the principles of the Universal 
     Declaration of Human Rights and despite the United Nations 
     charter requirements that all members promote respect for and 
     observe basic human rights, the Government of the People's 
     Republic of China continues to place severe restrictions on 
     religious expression and practice.

     SEC. 302. STATEMENT OF POLICY.

       It is the policy of the United States--
       (1) to encourage the People's Republic of China to adhere 
     to internationally accepted norms for the rule of law, human 
     rights, and worker rights; and
       (2) to develop a consistent multilateral response to the 
     record of the People's Republic of China on human rights and 
     worker rights.

     SEC. 303. RADIO FREE ASIA; NATIONAL ENDOWMENT FOR DEMOCRACY.

       (a) Radio Free Asia.--The President shall direct the 
     Director of the United States Information Agency and the 
     Board of Broadcasting Governors to increase the broadcast 
     hours of the Voice of America and Radio Free Asia to the 
     People's Republic of China and to broadcast to the People's 
     Republic of China in multiple Chinese dialects.
       (b) National Endowment for Democracy.--In addition to such 
     sums as are otherwise authorized to be appropriated for 
     fiscal year 1998 for grants to the National Endowment for 
     Democracy, there is authorized to be appropriated for fiscal 
     year 1998, $1,000,000 for grants to the National Endowment 
     for Democracy which shall be available only for purposes of 
     programs relating to the People's Republic of China.

     SEC. 304. MULTILATERAL HUMAN RIGHTS.

       In the absence of significant progress in improving human 
     rights in the People's Republic of China, the President shall 
     direct the United States Permanent Representative to the 
     United Nations to develop and implement a strategy to ensure 
     that there is a debate and discussion every year on the human 
     rights record of the People's Republic of China before the 
     United Nations Commission on Human Rights.
                 Subtitle B--Human Relations Commission

     SEC. 311. HUMAN RELATIONS COMMISSION.

       (a)  In General.--Not later than 6 months after the date of 
     enactment of this Act, the President, in consultation with 
     the majority and minority leaders of the Senate, the Speaker 
     of the House of Representatives, and the minority leader of 
     the House of Representatives, and appropriate representatives 
     from the private sector, shall appoint a 12-member Human 
     Relations Commission (referred to in this subtitle as the 
     ``Commission'').
       (b) Membership.--
       (1) Composition.--The Commission shall be composed of--
       (A) 4 individuals appointed from the executive branch of 
     the government;
       (B) 4 individuals appointed from the legislative branch of 
     the government; and
       (C) 4 individuals from the private sector.
       (c) Chairperson.--The Commission shall select a Chairperson 
     from among its members.
       (d) Term of Office.--Members shall be appointed for the 
     life of the Commission.
       (e) Vacancies.--Any vacancy occurring in the membership of 
     the Commission shall be filled in the same manner as the 
     original appointment for the position being vacated. The 
     vacancy shall not affect the power of the remaining members 
     to execute the duties of the Commission.
       (f) Compensation and Expenses.--
       (1) Compensation.--Each member of the Commission who is not 
     an employee of the Federal Government shall receive 
     compensation at the daily equivalent of the rate specified 
     for level V of the Executive Schedule under section 5316 of 
     title 5, United States Code, for each day the member is 
     engaged in the performance of duties for the Commission, 
     including attendance at meetings and conferences of the 
     Commission, and travel to conduct the duties of the 
     Commission.
       (2) Travel expenses.--Each member of the Commission shall 
     receive travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, for each day the member is engaged in the performance 
     of duties away from the home or regular place of business of 
     the member.

     SEC. 312. FUNCTIONS OF THE COMMISSION.

       (a) In General.--The Commission shall perform the following 
     functions:
       (1) Assess the status of human rights and worker rights in 
     the People's Republic of China based on the Universal 
     Declaration of Human Rights and internationally recognized 
     worker rights as defined in section 507(4) of the Trade Act 
     of 1974.
       (2) Work to develop a bilateral commission between the 
     United States and the People's Republic of China on human 
     rights and worker rights.
       (3) Expand opportunities for the exchange between the 
     United States and the People's Republic of China of judges, 
     attorneys, religious leaders, customs officials, and members 
     and staff of the executive and legislative branches of 
     government.
       (4) Encourage overseas development assistance programs that 
     support the establishment of rule of law and civil society in 
     the People's Republic of China.
       (5) Identify opportunities for multilateral action on human 
     rights and worker rights, and rejuvenate initiatives in the 
     International Labor Organization relating to human rights and 
     worker rights.
       (b) Assessment of Human Rights and Worker Rights.--
       (1) In general.--In assessing the status of human rights 
     and worker rights required by subsection (a), the Commission 
     shall establish a Prisoner Information Registry that contains 
     the information described in paragraph (2) with respect to 
     people detained in the People's Republic of China as 
     political prisoners, religious prisoners, and prisoners of 
     conscience.
       (2) Registry information.--The Prisoner Information 
     Registry shall contain the following information with respect 
     to the prisoners described in paragraph (1):
       (A) The charges against each prisoner.
       (B) A description of the judicial process or administrative 
     action taken with respect to each prisoner.
       (C) The length of incarceration, incidents of torture, and 
     use of forced labor with respect to each prisoner.
       (D) The physical condition and general health of each 
     prisoner.
       (E) Any other information relating to the general condition 
     of each prisoner that the Commission considers to be 
     relevant.
       (3) Report and recommendations.--
       (A) In general.--Not later than 1 year after the first 
     meeting of the Commission, and annually thereafter, the 
     Commission shall report to Congress and the President the 
     results of the assessment conducted under this subsection.
       (B) Recommendation.--If the Commission determines that the 
     People's Republic of China is not making progress in 
     improving the status of human rights and worker rights within 
     2 years after the date of the first meeting of the 
     Commission, the Commission shall recommend to the President 
     that the President strengthen United States policies intended 
     to improve the status of human rights and worker rights with 
     respect to the People's Republic of China as the Commission 
     determines to be appropriate.

     SEC. 313. STAFF.

       (a) Detail of Federal Employees.--On the request of the 
     Chairperson of the Commission, the head of any Federal agency 
     shall detail, without reimbursement, any of the personnel of 
     the agency to the Commission to assist the Commission in 
     carrying out its duties. Any detail shall not interrupt or 
     otherwise affect the civil service status or privileges of 
     the Federal employee.
       (b) Technical Assistance.--On the request of the 
     Chairperson of the Commission, the head of a Federal agency 
     shall provide such technical assistance to the Commission as 
     the Commission determines to be necessary to carry out its 
     duties.

     SEC. 314. TERMINATION.

       The Commission shall terminate on the day that is 3 years 
     after the date of the Commission's first meeting.

                          ____________________