[Congressional Record Volume 144, Number 95 (Thursday, July 16, 1998)]
[Senate]
[Pages S8389-S8405]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      UNITED STATES PATENT AND TRADEMARK ORGINIZATION ACT OF 1998

                                 ______
                                 

                        LEAHY AMENDMENT NO. 3174

  (Ordered to lie on the table.)
  Mr. LEAHY submitted an amendment intended to be proposed by him to 
the bill (S. 507), to establish the United States Patent and Trademark 
Organization as a Government corporation, to amend the provisions of 
title 35, United States code, relating to procedures for patent 
appliations, commerical use of patents, reexamination reform, and for 
other purposes; as follows:

       On page 106, line 1, strike all through line 6 on page 176 
     and insert the following:

        TITLE I--UNITED STATES PATENT AND TRADEMARK ORGANIZATION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``United States Patent and 
     Trademark Organization Act of 1998''.

  Subtitle A--Establishment of the United States Patent and Trademark 
                              Organization

     SEC. 111. ESTABLISHMENT OF THE UNITED STATES PATENT AND 
                   TRADEMARK ORGANIZATION AS A GOVERNMENT 
                   CORPORATION.

       (a) Establishment.--The United States Patent and Trademark 
     Organization is established as a wholly owned Government 
     corporation subject to chapter 91 of title 31, separate from 
     any department, and shall be an agency of the United States 
     under the policy direction of the Secretary of Commerce.
       (b) Offices.--The United States Patent and Trademark 
     Organization shall maintain its principal office in the 
     District of Columbia, or the metropolitan area thereof, for 
     the service of process and papers and for the purpose of 
     carrying out its powers, duties, and obligations under this 
     title. The United States Patent and Trademark Organization 
     shall be deemed, for purposes of venue in civil actions, to 
     be a resident of the district in which its principal office 
     is located except where jurisdiction is otherwise provided by 
     law. The United States Patent and Trademark Organization may 
     establish satellite offices in such places within the United 
     States as it considers necessary and appropriate in the 
     conduct of its business.
       (c) Reference.--For purposes of this title, a reference to 
     the ``Organization'' shall be a reference to the United 
     States Patent and Trademark Organization, unless the context 
     provides otherwise.

     SEC. 112. POWERS AND DUTIES.

       (a) In General.--The United States Patent and Trademark 
     Organization, under the policy direction of the Secretary of 
     Commerce, shall be responsible for--
       (1) the examination of patents and the trademark 
     applications;
       (2) in support of the Under Secretary for Intellectual 
     Property Policy, assisting with studies, programs, or 
     exchanges of items or services regarding domestic and 
     international patent and trademark law, the administration of 
     the Organization, or any other function vested in the 
     Organization by law, including programs to recognize, 
     identify, assess, and forecast the technology of patented 
     inventions and their utility to industry;
       (3)(A) in support of the Under Secretary for Intellectual 
     Property Policy, assisting with studies and programs 
     cooperatively with foreign patent and trademark offices and 
     international organizations, in connection with the granting 
     and issuing of patents and the registration of trademarks; 
     and
       (B) with the concurrence of the Secretary of State, 
     authorizing the transfer of not to exceed $100,000 in any 
     year to the Department of State for the purpose of making 
     special payments to international intergovernmental 
     organizations for studies and programs for advancing 
     international cooperation concerning patents, trademarks, and 
     related matters; and
       (4) disseminating to the public information with respect to 
     patents and trademarks.
       (b) Special Payments.--The special payments under 
     subsection (a)(3)(B) may be in addition to any other payments 
     or contributions to international organizations and shall not 
     be subject to any limitations imposed by law on the amounts 
     of such other payments or contributions by the United States 
     Government.
       (c) Specific Powers.--The Organization--
       (1) shall have perpetual succession;
       (2) may indemnify the Director of the United States Patent 
     and Trademark Organization, the Commissioner of Patents, the 
     Commissioner of Trademarks, and other officers, attorneys, 
     agents, and employees (including members of the Management 
     Advisory Boards of the Patent Office and the Trademark 
     Office) of the Organization for liabilities and expenses 
     incurred within the scope of their employment;
       (3) may adopt, amend, and repeal bylaws, rules, 
     regulations, and determinations, which--
       (A) shall govern the manner in which its business will be 
     conducted and the powers granted to it by law will be 
     exercised; and
       (B) shall be made after notice and opportunity for full 
     participation by interested public and private parties;
       (4)(A) may acquire, construct, purchase, lease, hold, 
     manage, operate, improve, alter, and renovate any real, 
     personal, or mixed property, or any interest therein, as it 
     considers necessary to carry out its functions; and
       (B) sell, lease, grant, and dispose of such property as it 
     considers necessary to effectuate the purposes of this Act;
       (5)(A) may make such purchases, contracts for the 
     construction, maintenance, or management and operation of 
     facilities, and contracts for supplies or services, without 
     regard to the provisions of the Federal Property and 
     Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), 
     the Public Buildings Act (40 U.S.C. 601 et seq.), and the 
     Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301 
     et seq.); and
       (B) may enter into and perform such purchases and contracts 
     for printing services,

[[Page S8390]]

     including the process of composition, platemaking, presswork, 
     silk screen processes, binding, microform, and the products 
     of such processes, as it considers necessary to carry out the 
     functions of the Organization, without regard to sections 501 
     through 517 and 1101 through 1123 of title 44, United States 
     Code;
       (6) may use, with their consent, services, equipment, 
     personnel, and facilities of other departments, agencies, and 
     instrumentalities of the Federal Government, on a 
     reimbursable basis, and cooperate with such other 
     departments, agencies, and instrumentalities in the 
     establishment and use of services, equipment, and facilities 
     of the Organization;
       (7) may obtain from the Administrator of General Services 
     such services as the Administrator is authorized to provide 
     to other agencies of the United States, on the same basis as 
     those services are provided to other agencies of the United 
     States;
       (8) may use, with the consent of the United States and the 
     agency, government, or international organization concerned, 
     the services, records, facilities, or personnel of any State 
     or local government agency or instrumentality or foreign 
     government or international organization to perform functions 
     on its behalf;
       (9) may retain and use all of its revenues and receipts, 
     including revenues from the sale, lease, or disposal of any 
     real, personal, or mixed property, or any interest therein, 
     of the Organization, including for research and development 
     and capital investment, subject to the provisions of section 
     10101 of the Omnibus Budget Reconciliation Act of 1990 (35 
     U.S.C. 41 note);
       (10) shall have the priority of the United States with 
     respect to the payment of debts from bankrupt, insolvent, and 
     decedents' estates;
       (11) may accept monetary gifts or donations of services, or 
     of real, personal, intellectual, or mixed property, in order 
     to enhance libraries and museums operated by the 
     Organization, support the educational programs of the 
     Organization, or otherwise carry out the functions of the 
     Organization;
       (12) may execute, in accordance with its bylaws, rules, and 
     regulations, all instruments necessary and appropriate in the 
     exercise of any of its powers; and
       (13) may provide for liability insurance and insurance 
     against any loss in connection with its property, other 
     assets, or operations either by contract or by self-
     insurance.
       (d) Restrictions on Gifts.--Any acceptance of a gift or 
     donation under subsection (c)(14) shall be subject to section 
     201 of title 18, United States Code. The Director shall 
     establish regulations for the acceptance of such gifts and 
     donations including regulations prohibiting gifts or 
     donations to the Organization by foreign entities.
       (e) Rule of Construction.--Nothing in this section shall be 
     construed to nullify, void, cancel, or interrupt any pending 
     request-for-proposal let or contract issued by the General 
     Services Administration for the specific purpose of 
     relocating or leasing space to the United States Patent and 
     Trademark Organization.

     SEC. 113. ORGANIZATION AND MANAGEMENT.

       (a) Offices.--The United States Patent and Trademark 
     Organization shall consist of--
       (1) the Office of the Director;
       (2) the United States Patent Office; and
       (3) the United States Trademark Office.
       (b) Director.--
       (1) In general.--The management of the United States Patent 
     and Trademark Organization shall be vested in a Director of 
     the United States Patent and Trademark Organization 
     (hereafter in this title referred to as the ``Director'', 
     unless the context provides otherwise), who shall be a 
     citizen of the United States and who shall be appointed by 
     the Secretary of Commerce to a 5-year term and compensated 
     without regard to chapters 33, 51, and 53 of title 5, United 
     States Code. The Secretary shall make the appointment on the 
     basis of demonstrated ability in management and professional 
     experience regarding patents or trademarks, and without 
     regard to political affiliation or activity. The Secretary 
     may reappoint the Director to subsequent terms so long as 
     performance, as set forth in the annual performance 
     agreement, is satisfactory or better.
       (2) Duties.--(A) The Director shall--
       (i) be responsible for the management and direction of the 
     Organization and shall perform this duty in a fair, 
     impartial, and equitable manner; and
       (ii) strive to meet the goals set forth in the performance 
     agreement described under paragraph (4); and
       (iii) provide such advice to the Under Secretary for 
     Intellectual Property Policy as the Director deems 
     appropriate to assist the Under Secretary in carrying out the 
     Under Secretary's responsibilities.
       (B) The Director, in consultation with the Director of the 
     Office of Personnel Management, shall maintain a program for 
     identifying national security positions and providing for 
     appropriate security clearances.
       (C) The Director may perform such personnel, procurement, 
     and other functions, with respect to the United States Patent 
     Office and the United States Trademark Office, where a 
     centralized administration of such functions would improve 
     the efficiency of the Offices, by continuous unanimous 
     agreement of the Director, the Commissioner of Patents, and 
     the Commissioner of Trademarks. The agreement shall be in 
     writing and shall indicate the allocation of costs among the 
     Office of the Director, the United States Patent Office, and 
     the United States Trademark Office.
       (D) Except as otherwise provided in this title, the 
     Director shall ensure that--
       (i) the United States Patent Office and the United States 
     Trademark Office, respectively, shall--
       (I) prepare all appropriation requests under section 1108 
     of title 31, United States Code, for each office for 
     submission by the Director;
       (II) adjust fees to provide sufficient revenues to cover 
     the expenses of such office; and
       (III) expend funds derived from such fees for only the 
     functions of such office; and
       (ii) each such office is not involved in the management of 
     any other office.
       (E) The Director shall submit to Congress annually such 
     information as is required under chapter 91 of title 31, 
     United States Code, including--
       (i) the total monies received and expended by the 
     Organization;
       (ii) the purpose for which the monies were spent;
       (iii) the amount of any surplus revenues retained by the 
     Organization;
       (iv) the quality and quantity of the work of the 
     Organization; and
       (v) other information relating to the Organization.
       (3) Oath.--The Director shall, before taking office, take 
     an oath to discharge faithfully the duties of the 
     Organization.
       (4) Compensation.--The Director shall be paid an annual 
     rate of basic pay not to exceed the maximum rate of basic pay 
     for the Senior Executive Service under section 5382 of title 
     5, United States Code, including any applicable locality 
     based comparability payment that may be authorized under 
     section 5304(h)(2) of such title. In addition, the Director 
     may receive a bonus in an amount up to, but not in excess of, 
     50 percent of such annual rate of basic pay, based on the 
     Secretary of Commerce's evaluation of the Director's 
     performance in relation to the performance goals set forth in 
     an annual performance agreement. Payment of a bonus under 
     this paragraph may be made to the Director to the extent that 
     such payment does not cause the Director's total aggregate 
     compensation in a calendar year to equal or exceed the amount 
     of the President's salary under section 102 of title 3, 
     United States Code.
       (5) Removal.--The Director shall be removable by the 
     Secretary of Commerce for misconduct or failure to meet 
     performance goals set forth in the annual performance 
     agreement.
       (6) Designee of director.--The Director shall designate an 
     officer of the Organization who shall be vested with the 
     authority to act in the capacity of the Director in the event 
     of the absence or incapacity of the Director.
       (c) Officers and Employees of the Organization.--
       (1) Commissioners of patents and trademarks.--The Secretary 
     of Commerce shall appoint a Commissioner of Patents and a 
     Commissioner of Trademarks under section 3 of title 35, 
     United States Code and section 53 of the Act of July 5, 1946 
     (commonly referred to as the Trademark Act of 1946), 
     respectively, as amended by this Act.
       (2) Other officers and employees.--The Director shall--
       (A) appoint officers, employees (including attorneys), and 
     agents of the Organization, who shall be citizens of the 
     United States, as the Director considers necessary to carry 
     out its functions;
       (B) fix the compensation of such officers and employees, 
     except as provided in subsection (e); and
       (C) define the authority and duties of such officers and 
     employees and delegate to them such of the powers vested in 
     the Organization as the Director may determine.
       (3) Personnel limitations.--The Organization shall not be 
     subject to any administratively or statutorily imposed 
     limitation on positions or personnel, and no positions or 
     personnel of the Organization shall be taken into account for 
     purposes of applying any such limitation.
       (d) Limits on Compensation.--Except as otherwise provided 
     by law, the annual rate of basic pay of an officer or 
     employee of the Organization may not be fixed at a rate that 
     exceeds, and total compensation payable to any such officer 
     or employee for any year may not exceed, the annual rate of 
     basic pay in effect for level II of the Executive Schedule 
     under section 5313 of title 5, United States Code. The 
     Director shall prescribe such regulations as may be necessary 
     to carry out this subsection.
       (e) Inapplicability of Title 5, United States Code, 
     Generally.--Except as otherwise provided in this section, 
     officers and employees of the Organization shall not be 
     subject to the provisions of title 5, United States Code, 
     relating to Federal employees.
       (f) Continued Applicability of Certain Provisions of Title 
     5, United States Code.--
       (1) In general.--The following provisions of title 5, 
     United States Code, shall apply to the Organization and its 
     officers and employees:
       (A) Section 3110 (relating to employment of relatives; 
     restrictions).
       (B) Subchapter II of chapter 55 (relating to withholding 
     pay).
       (C) Subchapters II and III of chapter 73 (relating to 
     employment limitations and political activities, 
     respectively).

[[Page S8391]]

       (D) Chapter 71 (relating to labor-management relations), 
     subject to paragraph (2) and subsection (g).
       (E) Section 3303 (relating to political recommendations).
       (F) Subchapter II of chapter 61 (relating to flexible and 
     compressed work schedules).
       (G) Section 2302(b)(8) (relating to whistleblower 
     protection) and whistleblower related provisions of chapter 
     12 (covering the role of the Office of Special Counsel).
       (2) Compensation subject to collective bargaining.--
       (A) In general.--Notwithstanding any other provision of 
     law, for purposes of applying chapter 71 of title 5, United 
     States Code, pursuant to paragraph (1)(D), basic pay and 
     other forms of compensation shall be considered to be among 
     the matters as to which the duty to bargain in good faith 
     extends under such chapter.
       (B) Exceptions.--The duty to bargain in good faith shall 
     not, by reason of subparagraph (A), be considered to extend 
     to any benefit under title 5, United States Code, which is 
     afforded by paragraph (1), (2), (3), or (4) of subsection 
     (g).
       (C) Limitations apply.--Nothing in this subsection shall be 
     considered to allow any limitation under subsection (d) to be 
     exceeded.
       (g) Provisions of Title 5, United States Code, That 
     Continue To Apply, Subject to Certain Requirements.--
       (1) Retirement.--(A) The provisions of subchapter III of 
     chapter 83 and chapter 84 of title 5, United States Code, 
     shall apply to the Organization and its officers and 
     employees, subject to subparagraph (B).
       (B)(i) The amount required of the Organization under the 
     second sentence of section 8334(a)(1) of title 5, United 
     States Code, with respect to any particular individual shall, 
     instead of the amount which would otherwise apply, be equal 
     to the normal-cost percentage (determined with respect to 
     officers and employees of the Organization using dynamic 
     assumptions, as defined by section 8401(9) of such title) of 
     the individual's basic pay, minus the amount required to be 
     withheld from such pay under such section 8334(a)(1).
       (ii) The amount required of the Organization under section 
     8334(k)(1)(B) of title 5, United States Code, with respect to 
     any particular individual shall be equal to an amount 
     computed in a manner similar to that specified in clause (i), 
     as determined in accordance with clause (iii).
       (iii) Any regulations necessary to carry out this 
     subparagraph shall be prescribed by the Office of Personnel 
     Management.
       (C) The United States Patent and Trademark Organization may 
     supplement the benefits provided under the preceding 
     provisions of this paragraph.
       (2) Health benefits.--(A) The provisions of chapter 89 of 
     title 5, United States Code, shall apply to the Organization 
     and its officers and employees, subject to subparagraph (B).
       (B)(i) With respect to any individual who becomes an 
     officer or employee of the Organization pursuant to 
     subsection (i), the eligibility of such individual to 
     participate in such program as an annuitant (or of any other 
     person to participate in such program as an annuitant based 
     on the death of such individual) shall be determined 
     disregarding the requirements of section 8905(b) of title 5, 
     United States Code. The preceding sentence shall not apply if 
     the individual ceases to be an officer or employee of the 
     Organization for any period of time after becoming an officer 
     or employee of the Organization pursuant to subsection (i) 
     and before separation.
       (ii) The Government contributions authorized by section 
     8906 of title 5, United States Code, for health benefits for 
     anyone participating in the health benefits program pursuant 
     to this subparagraph shall be made by the Organization in the 
     same manner as provided under section 8906(g)(2) of such 
     title with respect to the United States Postal Service for 
     individuals associated therewith.
       (iii) For purposes of this subparagraph, the term 
     ``annuitant'' has the meaning given such term by section 
     8901(3) of title 5, United States Code.
       (C) The Organization may supplement the benefits provided 
     under the preceding provisions of this paragraph.
       (3) Life insurance.--(A) The provisions of chapter 87 of 
     title 5, United States Code, shall apply to the Organization 
     and its officers and employees, subject to subparagraph (B).
       (B)(i) Eligibility for life insurance coverage after 
     retirement or while in receipt of compensation under 
     subchapter I of chapter 81 of title 5, United States Code, 
     shall be determined, in the case of any individual who 
     becomes an officer or employee of the Organization pursuant 
     to subsection (i), without regard to the requirements of 
     section 8706(b) (1) or (2) of such title, but subject to the 
     condition specified in the last sentence of paragraph 
     (2)(B)(i) of this subsection.
       (ii) Government contributions under section 8708(d) of such 
     title on behalf of any such individual shall be made by the 
     Organization in the same manner as provided under paragraph 
     (3) thereof with respect to the United States Postal Service 
     for individuals associated therewith.
       (C) The Organization may supplement the benefits provided 
     under the preceding provisions of this paragraph.
       (4) Employees' compensation fund.--(A) Officers and 
     employees of the Organization shall not become ineligible to 
     participate in the program under chapter 81 of title 5, 
     United States Code, relating to compensation for work 
     injuries, by reason of subsection (e).
       (B) The Organization shall remain responsible for 
     reimbursing the Employees' Compensation Fund, pursuant to 
     section 8147 of title 5, United States Code, for compensation 
     paid or payable after the effective date of this title in 
     accordance with chapter 81 of title 5, United States Code, 
     with regard to any injury, disability, or death due to events 
     arising before such date, whether or not a claim has been 
     filed or is final on such date.
       (h) Labor-Management Relations.--
       (1) Labor relations and employee relations programs.--The 
     Organization shall develop hiring practices, labor relations 
     and employee relations programs with the objective of 
     improving productivity and efficiency, incorporating the 
     following principles:
       (A) Such programs shall be consistent with the merit 
     principles in section 2301(b) of title 5, United States Code.
       (B) Such programs shall provide veterans preference 
     protections equivalent to those established by sections 2108, 
     3308 through 3318, 3320, 3502, and 3504 of title 5, United 
     States Code.
       (C)(i) The right to work shall not be subject to undue 
     restraint or coercion. The right to work shall not be 
     infringed or restricted in any way based on membership in, 
     affiliation with, or financial support of a labor 
     organization.
       (ii) No person shall be required, as a condition of 
     employment or continuation of employment--
       (I) to resign or refrain from voluntary membership in, 
     voluntary affiliation with, or voluntary financial support of 
     a labor organization;
       (II) to become or remain a member of a labor organization;
       (III) to pay any dues, fees, assessments, or other charges 
     of any kind or amount to a labor organization;
       (IV) to pay to any charity or other third party, in lieu of 
     such payments, any amount equivalent to or a pro rata portion 
     of dues, fees, assessments, or other charges regularly 
     required of members of a labor organization; or
       (V) to be recommended, approved, referred, or cleared by or 
     through a labor organization.
       (iii) This subparagraph shall not apply to a person 
     described in section 7103(a)(2)(v) of title 5, United States 
     Code, or a ``supervisor'', ``management official'', or 
     ``confidential employee'' as those terms are defined in 
     7103(a) (10), (11), and (13) of such title.
       (iv) Any labor organization recognized by the Organization 
     as the exclusive representative of a unit of employees of the 
     Organization shall represent the interests of all employees 
     in that unit without discrimination and without regard to 
     labor organization membership.
       (2) Adoption of existing labor agreements.--The 
     Organization shall adopt all labor agreements which are in 
     effect, as of the day before the effective date of this 
     title, with respect to such Organization (as then in effect).
       (i) Carryover of Personnel.--
       (1) From pto.--Effective as of the effective date of this 
     title, all officers and employees of the Patent and Trademark 
     Office on the day before such effective date shall become 
     officers and employees of the Organization, without a break 
     in service.
       (2) Other personnel.--(A) Any individual who, on the day 
     before the effective date of this title, is an officer or 
     employee of the Department of Commerce (other than an officer 
     or employee under paragraph (1)) shall be transferred to the 
     Organization if--
       (i) such individual serves in a position for which a major 
     function is the performance of work reimbursed by the Patent 
     and Trademark Office, as determined by the Secretary of 
     Commerce;
       (ii) such individual serves in a position that performed 
     work in support of the Patent and Trademark Office during at 
     least half of the incumbent's work time, as determined by the 
     Secretary of Commerce; or
       (iii) such transfer would be in the interest of the 
     Organization, as determined by the Secretary of Commerce in 
     consultation with the Director.
       (B) Any transfer under this paragraph shall be effective as 
     of the same effective date as referred to in paragraph (1), 
     and shall be made without a break in service.
       (3) Accumulated leave.--The amount of sick and annual leave 
     and compensatory time accumulated under title 5, United 
     States Code, before the effective date described in paragraph 
     (1), by any individual who becomes an officer or employee of 
     the Organization under this subsection, are obligations of 
     the Organization.
       (4) Termination rights.--Any employee referred to in 
     paragraph (1) or (2) of this subsection whose employment with 
     the Organization is terminated during the 1-year period 
     beginning on the effective date of this title shall be 
     entitled to rights and benefits, to be afforded by the 
     Organization, similar to those such employee would have had 
     under Federal law if termination had occurred immediately 
     before such date. An employee who would have been entitled to 
     appeal any such termination to the Merit Systems Protection 
     Board, if such termination had occurred immediately before 
     such effective date, may appeal any such termination 
     occurring within such 1-year period to the Board under such 
     procedures as it may prescribe.

[[Page S8392]]

       (5) Transition provisions.--(A)(i) On or after the 
     effective date of this title, the President shall appoint a 
     Director of the United States Patent and Trademark 
     Organization who shall serve until the earlier of--
       (I) the date on which a Director qualifies under subsection 
     (b); or
       (II) the date occurring 1 year after the effective date of 
     this title.
       (ii) The President shall not make more than 1 appointment 
     under this subparagraph.
       (B) The individual serving as the Assistant Commissioner of 
     Patents on the day before the effective date of this title 
     shall serve as the Commissioner of Patents until the date on 
     which a Commissioner of Patents is appointed under section 3 
     of title 35, United States Code, as amended by this Act.
       (C) The individual serving as the Assistant Commissioner of 
     Trademarks on the day before the effective date of this title 
     shall serve as the Commissioner of Trademarks until the date 
     on which a Commissioner of Trademarks is appointed under 
     section 53 of the Act of July 5, 1946 (commonly referred to 
     as the Trademark Act of 1946), as amended by this Act.
       (j) Competitive Status.--For purposes of appointment to a 
     position in the competitive service for which an officer or 
     employee of the Organization is qualified, such officer or 
     employee shall not forfeit any competitive status, acquired 
     by such officer or employee before the effective date of this 
     title, by reason of becoming an officer or employee of the 
     Organization under subsection (i).
       (k) Savings Provisions.--Compensation, benefits, and other 
     terms and conditions of employment in effect immediately 
     before the effective date of this title, whether provided by 
     statute or by rules and regulations of the former Patent and 
     Trademark Office or the executive branch of the Government of 
     the United States, shall continue to apply to officers and 
     employees of the Organization, until changed in accordance 
     with this section (whether by action of the Director or 
     otherwise).
       (l) Removal of Quasi-Judicial Examiners.--The Organization 
     may remove a patent examiner or administrative patent judge, 
     or a trademark examiner or an administrative trademark judge 
     only for such cause as will promote the efficiency of the 
     Organization.

     SEC. 114. UNITED STATES PATENT OFFICE.

       (a) Establishment of the Patent Office as a Separate 
     Administrative Unit.--Section 1 of title 35, United States 
     Code, is amended to read as follows:

     ``Sec. 1. Establishment

       ``(a) Establishment.--The United States Patent Office is 
     established as a separate administrative unit of the United 
     States Patent and Trademark Organization, where records, 
     books, drawings, specifications, and other papers and things 
     pertaining to patents shall be kept and preserved, except as 
     otherwise provided by law.
       ``(b) Reference.--For purposes of this title, the United 
     States Patent Office shall also be referred to as the 
     `Office' and the `Patent Office'.''.
       (b) Powers and Duties.--Section 2 of title 35, United 
     States Code, is amended to read as follows:

     ``Sec. 2. Powers and duties

       ``The United States Patent Office, under the policy 
     direction of the Secretary of Commerce through the Director 
     of the United States Patent and Trademark Organization, shall 
     be responsible for--
       ``(1) examination of patent applications;
       ``(2) in support of the Secretary of Commerce and Under 
     Secretary for Intellectual Property Policy, assisting with 
     studies, programs, or exchanges of items or services 
     regarding domestic and international patent law, the 
     administration of the Office, or any other function vested in 
     the Office by law, including programs to recognize, identify, 
     assess, and forecast the technology of patented inventions 
     and their utility to industry;
       ``(3) in support of the Secretary of Commerce and Under 
     Secretary for Intellectual Property Policy, assisting with 
     studies and programs cooperatively with foreign patent 
     offices and international organizations, in connection with 
     the granting and issuing of patents; and
       ``(4) disseminating to the public information with respect 
     to patents.''.
       (c) Organization and Management.--Section 3 of title 35, 
     United States Code, is amended to read as follows:

     ``Sec. 3. Officers and employees

       ``(a) Commissioner.--
       ``(1) In general.--The management of the United States 
     Patent Office shall be vested in a Commissioner of Patents, 
     who shall be a citizen of the United States and who shall be 
     appointed by the Secretary of Commerce and shall serve at the 
     pleasure of the Secretary of Commerce. The Commissioner of 
     Patents shall be a person who, by reason of professional 
     background and experience in patent law, is especially 
     qualified to manage the Office.
       ``(2) Duties.--
       ``(A) In general.--The Commissioner shall be responsible 
     for all aspects of the management, administration, and 
     operation of the Office, and shall perform these duties in a 
     fair, impartial, and equitable manner.
       ``(B) Advising the director of the united states patent and 
     trademark organization.--The Commissioner of Patents shall 
     advise the Director of the United States Patent and Trademark 
     Organization of all activities of the Office undertaken in 
     response to obligations of the United States under treaties 
     and executive agreements, or which relate to cooperative 
     programs with those authorities of foreign governments that 
     are responsible for granting patents. The Commissioner of 
     Patents shall advise the Director of the United States Patent 
     and Trademark Organization on matters of patent law and shall 
     recommend to the Director of the United States Patent and 
     Trademark Organization changes in law or policy which may 
     improve the ability of United States citizens to secure and 
     enforce patent rights in the United States or in foreign 
     countries.
       ``(C) Regulations.--The Commissioner may establish 
     regulations, not inconsistent with law, for the conduct of 
     proceedings in the Patent Office. The Director of the United 
     States Patent and Trademark Organization shall determine 
     whether such regulations are consistent with the policy 
     direction of the Secretary of Commerce.
       ``(D) Consultation with the management advisory board.--(i) 
     The Commissioner shall consult with the Management Advisory 
     Board established in section 5--
       ``(I) on a regular basis on matters relating to the 
     operation of the Office; and
       ``(II) before submitting budgetary proposals to the 
     Director of the United States Patent and Trademark 
     Organization for submission to the Office of Management and 
     Budget or changing or proposing to change patent user fees or 
     patent regulations.
       ``(ii) The Director of the United States Patent and 
     Trademark Organization shall determine whether such fees or 
     regulations are consistent with the policy direction of the 
     Secretary of Commerce.
       ``(3) Oath.--The Commissioner shall, before taking office, 
     take an oath to discharge faithfully the duties of the 
     Office.
       ``(4) Compensation.--
       ``(A) In general.--The Commissioner shall receive 
     compensation at the rate of pay in effect for level IV of the 
     Executive Schedule under section 5315 of title 5.
       ``(B) Bonus.--In addition to compensation under 
     subparagraph (A), the Commissioner may, at the discretion of 
     the Director of the United States Patent and Trademark 
     Organization, receive as a bonus, an amount which would raise 
     total compensation to the equivalent of the rate of pay in 
     effect for level III of the Executive Schedule under section 
     5314 of title 5.
       ``(b) Officers and Employees.--
       ``(1) Deputy commissioner of patents.--The Commissioner 
     shall appoint a Deputy Commissioner of Patents who shall be 
     vested with the authority to act in the capacity of the 
     Commissioner in the event of the absence or incapacity of the 
     Commissioner. In the event of a vacancy in the office of 
     Commissioner, the Deputy Commissioner shall fill the office 
     of Commissioner until a new Commissioner is appointed and 
     takes office.
       ``(2) Ombudsman.--The Commissioner shall appoint an 
     ombudsman to advise the Commissioner on the concerns of 
     independent inventors, nonprofit organizations, and small 
     business concerns.
       ``(3) Other officers and employees.--Other officers, 
     attorneys, employees, and agents shall be selected and 
     appointed by the Commissioner, and shall be vested with such 
     powers and duties as the Commissioner may determine.''.
       (d) Management Advisory Board.--Chapter 1 of part I of 
     title 35, United States Code, is amended by inserting after 
     section 4 the following:

     ``Sec. 5. Patent Office Management Advisory Board

       ``(a) Establishment of Management Advisory Board.--
       ``(1) Appointment.--The United States Patent Office shall 
     have a Management Advisory Board (hereafter in this title 
     referred to as the `Advisory Board') of 5 members, who shall 
     be appointed by the President and shall serve at the pleasure 
     of the President. Not more than 3 of the 5 members shall be 
     members of the same political party. At least 1 member shall 
     be an independent inventor, as defined in regulations issued 
     by the Commissioner.
       ``(2) Chair.--The President shall designate a Chair of the 
     Advisory Board, whose term as chair shall be for 3 years.
       ``(3) Timing of appointments.--Initial appointments to the 
     Advisory Board shall be made within 3 months after the 
     effective date of the United States Patent and Trademark 
     Organization Act of 1998. Vacancies shall be filled in the 
     manner in which the original appointment was made under this 
     subsection within 3 months after they occur.
       ``(b) Basis for Appointments.--Members of the Advisory 
     Board shall be citizens of the United States who shall be 
     chosen so as to represent the interests of diverse users of 
     the United States Patent Office, and shall include 
     individuals with substantial background and achievement in 
     corporate finance and management.
       ``(c) Meetings.--The Advisory Board shall meet at the call 
     of the Chair to consider an agenda set by the Chair.
       ``(d) Duties.--The Advisory Board shall--
       ``(1) review the policies, goals, performance, budget, and 
     user fees of the United States Patent Office, and advise the 
     Commissioner on these matters;
       ``(2) within 60 days after the end of each fiscal year--
       ``(A) prepare an annual report on the matters referred to 
     in paragraph (1);

[[Page S8393]]

       ``(B) transmit the report to the Director of the United 
     States Patent and Trademark Organization, the President, and 
     the Committees on the Judiciary of the Senate and the House 
     of Representatives; and
       ``(C) publish the report in the Patent Office Official 
     Gazette.
       ``(e) Compensation.--Each member of the Advisory Board 
     shall be compensated for each day (including travel time) 
     during which such member is attending meetings or conferences 
     of the Advisory Board or otherwise engaged in the business of 
     the Advisory Board, at the rate which is the daily equivalent 
     of the annual rate of basic pay in effect for level III of 
     the Executive Schedule under section 5314 of title 5, and 
     while away from such member's home or regular place of 
     business such member may be allowed travel expenses, 
     including per diem in lieu of subsistence, as authorized by 
     section 5703 of title 5.
       ``(f) Access to Information.--Members of the Advisory Board 
     shall be provided access to records and information in the 
     United States Patent Office, except for personnel or other 
     privileged information and information concerning patent 
     applications required to be kept in confidence by section 
     122.
       ``(g) Applicability of Certain Ethics Laws.--Members of the 
     Advisory Board shall be special Government employees within 
     the meaning of section 202 of title 18.''.
       (e) Conforming Amendments.--Section 6 of title 35, United 
     States Code, and the item relating to such section in the 
     table of contents for chapter 1 of title 35, United States 
     Code, are repealed.
       (f) Board of Patent Appeals and Interferences.--Section 7 
     of title 35, United States Code, is amended to read as 
     follows:

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

       ``(a) Establishment and Composition.--There shall be in the 
     United States Patent Office a Board of Patent Appeals and 
     Interferences. The Commissioner, the Deputy Commissioner, and 
     the administrative patent judges shall constitute the Board. 
     The administrative patent judges shall be persons of 
     competent legal knowledge and scientific ability.
       ``(b) Duties.--
       ``(1) In general.--The Board of Patent Appeals and 
     Interferences shall, on written appeal of an applicant, a 
     patent owner, or a third-party requester in a reexamination 
     proceeding--
       ``(A) review adverse decisions of examiners--
       ``(i) upon applications for patents; and
       ``(ii) in reexamination proceedings; and
       ``(B) determine priority and patentability of invention in 
     interferences declared under section 135(a).
       ``(2) Hearings.--Each appeal and interference shall be 
     heard by at least 3 members of the Board, who shall be 
     designated by the Commissioner. Only the Board of Patent 
     Appeals and Interferences may grant rehearings.''.
       (g) Annual Report of Commissioner.--Section 14 of title 35, 
     United States Code, is amended to read as follows:

     ``Sec. 14. Annual report to Congress

       ``The Commissioner shall report to the Director of the 
     United States Patent and Trademark Organization such 
     information as the Director is required to submit to Congress 
     annually under section 157(d) of this title, and under 
     chapter 91 of title 31, including--
       ``(1) the total of the moneys received and expended by the 
     Office;
       ``(2) the purposes for which the moneys were spent;
       ``(3) the quality and quantity of the work of the Office; 
     and
       ``(4) other information relating to the Office.''.
       (h) Practice Before Patent Office.--
       (1) In general.--Section 31 of title 35, United States 
     Code, is amended to read as follows:

     ``Sec. 31. Regulations for agents and attorneys

       ``The Commissioner may prescribe regulations governing the 
     recognition and conduct of agents, attorneys, or other 
     persons representing applicants or other parties before the 
     Office. The regulations may require such persons, before 
     being recognized as representatives of applicants or other 
     persons, to show that they are of good moral character and 
     reputation and are possessed of the necessary qualifications 
     to render to applicants or other persons valuable service, 
     advice, and assistance in the presentation or prosecution of 
     their applications or other business before the Office.''.
       (2) Designation of attorney to conduct hearing.--Section 32 
     of title 35, United States Code, is amended in the first 
     sentence by striking ``Patent and Trademark Office'' and 
     inserting ``Patent Office'' and by inserting before the last 
     sentence the following: ``The Commissioner shall have the 
     discretion to designate any attorney who is an officer or 
     employee of the United States Patent Office to conduct the 
     hearing required by this section.''.
       (i) Funding.--
       (1) Adjustment of fees.--Section 41(f) of title 35, United 
     States Code, is amended to read as follows:
       ``(f) The Commissioner, after consulting with the Patent 
     Office Management Advisory Board pursuant to section 
     3(a)(2)(C) of this title and after notice and opportunity for 
     full participation by interested public and private parties, 
     may, by regulation, adjust the fees established in this 
     section. The Director of the United States Patent and 
     Trademark Organization shall determine whether such fees are 
     consistent with the policy direction of the Secretary of 
     Commerce.''.
       (2) Patent office funding.--Section 42 of title 35, United 
     States Code, is amended to read as follows:

     ``Sec. 42. Patent Office funding

       ``(a) Fees Payable to the Office.--All fees for services 
     performed by or materials furnished by the United States 
     Patent Office shall be payable to the Office.
       ``(b) Use of Moneys.--Moneys from fees shall be available 
     to the United States Patent Office to carry out, to the 
     extent provided in appropriations Acts, the functions of the 
     Office. Moneys of the Office not otherwise used to carry out 
     the functions of the Office shall be kept in cash on hand or 
     on deposit, or invested in obligations of the United States 
     or guaranteed by the United States, or in obligations or 
     other instruments which are lawful investments for fiduciary, 
     trust, or public funds. Fees available to the Commissioner 
     under this title shall be used only for the processing of 
     patent applications and for other services and materials 
     relating to patents, including the agreed upon share of any 
     centralized function, as set forth in section 113(b)(2)(E) of 
     the United States Patent and Trademark Organization Act of 
     1998.
       ``(c) Contribution to the Office of the Director of the 
     United States Patent and Trademark Organization.--The Patent 
     Office shall contribute 50 percent of the annual budget of 
     the Office of the Director of the United States Patent and 
     Trademark Organization.''.

     SEC. 115. UNITED STATES TRADEMARK OFFICE.

       (a) Establishment of the United States Trademark Office as 
     a Separate Administrative Unit.--The Act of July 5, 1946 
     (commonly referred to as the Trademark Act of 1946) is 
     amended--
       (1) by redesignating titles X and XI as titles XI and XII, 
     respectively;
       (2) by redesignating sections 45, 46, 47, 48, 49, 50, and 
     51 as sections 61, 71, 72, 73, 74, 75, and 76, respectively; 
     and
       (3) by inserting after title IX the following new title:

               ``TITLE X--UNITED STATES TRADEMARK OFFICE

     ``SEC. 51. ESTABLISHMENT.

       ``(a) Establishment.--The United States Trademark Office is 
     established as a separate administrative unit of the United 
     States Patent and Trademark Organization.
       ``(b) Reference.--For purposes of this chapter, the United 
     States Trademark Office shall also be referred to as the 
     `Office' and the `Trademark Office'.

     ``SEC. 52. POWERS AND DUTIES.

       ``The United States Trademark Office, under the policy 
     direction of the Secretary of Commerce through the Director 
     of the United States Patent and Trademark Organization, shall 
     be responsible for--
       ``(1) the examination of trademark applications;
       ``(2) in support of the Secretary of Commerce and the Under 
     Secretary for Intellectual Property Policy, assisting with 
     studies, programs, or exchanges of items or services 
     regarding domestic and international trademark law or the 
     administration of the Office;
       ``(3) in support of the Secretary of Commerce and the Under 
     Secretary for Intellectual Property Policy, assisting with 
     studies and programs cooperatively with foreign trademark 
     offices and international organizations, in connection with 
     the registration of trademarks; and
       ``(4) disseminating to the public information with respect 
     to trademarks.

     ``SEC. 53. OFFICERS AND EMPLOYEES.

       ``(a) Commissioner.--
       ``(1) In general.--The management of the United States 
     Trademark Office shall be vested in a Commissioner of 
     Trademarks, who shall be a citizen of the United States and 
     who shall be appointed by the Secretary of Commerce and shall 
     serve at the pleasure of the Secretary of Commerce. The 
     Commissioner of Trademarks shall be a person who, by reason 
     of professional background and experience in trademark law, 
     is especially qualified to manage the Office.
       ``(2) Duties.--
       ``(A) In general.--The Commissioner shall be responsible 
     for all aspects of the management, administration, and 
     operation of the Office, and shall perform these duties in a 
     fair, impartial, and equitable manner.
       ``(B) Advising the director of the united states patent and 
     trademark organization.--The Commissioner of Trademarks shall 
     advise the Director of the United States Patent and Trademark 
     Organization of all activities of the Office undertaken in 
     response to obligations of the United States under treaties 
     and executive agreements, or which relate to cooperative 
     programs with those authorities of foreign governments that 
     are responsible for registering trademarks. The Commissioner 
     of Trademarks shall advise the Director of the United States 
     Patent and Trademark Organization on matters of trademark law 
     and shall recommend to the Director of the United States 
     Patent and Trademark Organization changes in law or policy 
     which may improve the ability of United States citizens to 
     secure and enforce trademark rights in the United States or 
     in foreign countries.
       ``(C) Regulations.--The Commissioner may establish 
     regulations, not inconsistent with law, for the conduct of 
     proceedings in

[[Page S8394]]

     the Trademark Office. The Director of the United States 
     Patent and Trademark Organization shall determine whether 
     such regulations are consistent with the policy direction of 
     the Secretary of Commerce.
       ``(D) Consultation with the management advisory board.--(i) 
     The Commissioner shall consult with the Trademark Office 
     Management Advisory Board established under section 54--
       ``(I) on a regular basis on matters relating to the 
     operation of the Office; and
       ``(II) before submitting budgetary proposals to the 
     Director of the United States Patent and Trademark 
     Organization for submission to the Office of Management and 
     Budget or changing or proposing to change trademark user fees 
     or trademark regulations.
       ``(ii) The Director of the United States Patent and 
     Trademark Organization shall determine whether such fees or 
     regulations are consistent with the policy direction of the 
     Secretary of Commerce.
       ``(E) Publications.--(i) The Commissioner may print, or 
     cause to be printed, the following:
       ``(I) Certificates of trademark registrations, including 
     statements and drawings, together with copies of the same.
       ``(II) The Official Gazette of the United States Trademark 
     Office.
       ``(III) Annual indexes of trademarks and registrants.
       ``(IV) Annual volumes of decisions in trademark cases.
       ``(V) Pamphlet copies of laws and rules relating to 
     trademarks and circulars or other publications relating to 
     the business of the Office.
       ``(ii) The Commissioner may exchange any of the 
     publications specified under clause (i) for publications 
     desirable for the use of the Trademark Office.
       ``(3) Oath.--The Commissioner shall, before taking office, 
     take an oath to discharge faithfully the duties of the 
     Office.
       ``(4) Compensation.--
       ``(A) In general.--The Commissioner shall receive 
     compensation at the rate of pay in effect for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code.
       ``(B) Bonus.--In addition to compensation under 
     subparagraph (A), the Commissioner may, at the discretion of 
     the Director of the United States Patent and Trademark 
     Organization, receive as a bonus, an amount which would raise 
     total compensation to the equivalent of the rate of pay in 
     effect for level III of the Executive Schedule under section 
     5314 of title 5.
       ``(b) Officers and Employees.--The Commissioner shall 
     appoint a Deputy Commissioner of Trademarks who shall be 
     vested with the authority to act in the capacity of the 
     Commissioner in the event of the absence or incapacity of the 
     Commissioner. In the event of a vacancy in the office of 
     Commissioner, the Deputy Commissioner shall fill the office 
     of Commissioner until a new Commissioner is appointed and 
     takes office. Other officers, attorneys, employees, and 
     agents shall be selected and appointed by the Commissioner, 
     and shall be vested with such powers and duties as the 
     Commissioner may determine.

     ``SEC. 54. TRADEMARK OFFICE MANAGEMENT ADVISORY BOARD.

       ``(a) Establishment of Management Advisory Board.--
       ``(1) Appointment.--The United States Trademark Office 
     shall have a Management Advisory Board (hereafter in this 
     title referred to as the `Advisory Board') of 5 members, who 
     shall be appointed by the President and shall serve at the 
     pleasure of the President. Not more than 3 of the 5 members 
     shall be members of the same political party.
       ``(2) Chair.--The President shall designate a Chair of the 
     Advisory Board, whose term as chair shall be for 3 years.
       ``(3) Timing of appointments.--Initial appointments to the 
     Advisory Board shall be made within 3 months after the 
     effective date of the United States Patent and Trademark 
     Organization Act of 1998. Vacancies shall be filled in the 
     manner in which the original appointment was made under this 
     section within 3 months after they occur.
       ``(b) Basis for Appointments.--Members of the Advisory 
     Board shall be citizens of the United States who shall be 
     chosen so as to represent the interests of diverse users of 
     the United States Trademark Office, and shall include 
     individuals with substantial background and achievement in 
     corporate finance and management.
       ``(c) Meetings.--The Advisory Board shall meet at the call 
     of the Chair to consider an agenda set by the Chair.
       ``(d) Duties.--The Advisory Board shall--
       ``(1) review the policies, goals, performance, budget, and 
     user fees of the United States Trademark Office, and advise 
     the Commissioner on these matters; and
       ``(2) within 60 days after the end of each fiscal year--
       ``(A) prepare an annual report on the matters referred to 
     under paragraph (1);
       ``(B) transmit the report to the Director of the United 
     States Patent and Trademark Organization, the President, and 
     the Committees on the Judiciary of the Senate and the House 
     of Representatives; and
       ``(C) publish the report in the Trademark Office Official 
     Gazette.
       ``(e) Compensation.--Each member of the Advisory Board 
     shall be compensated for each day (including travel time) 
     during which such member is attending meetings or conferences 
     of the Advisory Board or otherwise engaged in the business of 
     the Advisory Board, at the rate which is the daily equivalent 
     of the annual rate of basic pay in effect for level III of 
     the Executive Schedule under section 5314 of title 5, United 
     States Code, and while away from such member's home or 
     regular place of business such member may be allowed travel 
     expenses, including per diem in lieu of subsistence, as 
     authorized by section 5703 of title 5, United States Code.
       ``(f) Access to Information.--Members of the Advisory Board 
     shall be provided access to records and information in the 
     United States Trademark Office, except for personnel or other 
     privileged information.
       ``(g) Applicability of Certain Ethic Laws.--Members of the 
     Advisory Board shall be special Government employees within 
     the meaning of section 202 of title 18.

     ``SEC. 55. ANNUAL REPORT TO CONGRESS.

       ``The Commissioner shall report to the Director of the 
     United States Patent and Trademark Organization such 
     information as the Director is required to report to Congress 
     annually under chapter 91 of title 31, including--
       ``(1) the moneys received and expended by the Office;
       ``(2) the purposes for which the moneys were spent;
       ``(3) the quality and quantity of the work of the Office; 
     and
       ``(4) other information relating to the Office.

     ``SEC. 56. TRADEMARK OFFICE FUNDING.

       ``(a) Fees Payable to the Office.--All fees for services 
     performed by or materials furnished by the United States 
     Trademark Office shall be payable to the Office.
       ``(b) Use of Moneys.--Moneys from fees shall be available 
     to the United States Trademark Office to carry out, to the 
     extent provided in appropriations Acts, the functions of the 
     Office. Moneys of the Office not otherwise used to carry out 
     the functions of the Office shall be kept in cash on hand or 
     on deposit, or invested in obligations of the United States 
     or guaranteed by the United States, or in obligations or 
     other instruments which are lawful investments for fiduciary, 
     trust, or public funds. Fees available to the Commissioner 
     under this chapter shall be used only for the registration of 
     trademarks and for other services and materials relating to 
     trademarks, including the agreed upon share of any 
     centralized function, as set forth in section 113(b)(2)(E) of 
     the United States Patent and Trademark Organization Act of 
     1998.
       ``(c) Contribution to the Office of the Director of the 
     United States Patent and Trademark Organization.--The 
     Trademark Office shall contribute 50 percent of the annual 
     budget of the Office of the Director of the United States 
     Patent and Trademark Organization.''.
       (b) Trademark Trial and Appeal Board.--Section 17 of the 
     Act of July 5, 1946 (commonly referred to as the Trademark 
     Act of 1946) (15 U.S.C. 1067) is amended to read as follows:
       ``Sec. 17. (a) In every case of interference, opposition to 
     registration, application to register as a lawful concurrent 
     user, or application to cancel the registration of a mark, 
     the Commissioner shall give notice to all parties and shall 
     direct a Trademark Trial and Appeal Board to determine and 
     decide the respective rights of registration.
       ``(b) The Trademark Trial and Appeal Board shall include 
     the Commissioner of Trademarks, the Deputy Commissioner of 
     Trademarks, and administrative trademark judges competent in 
     trademark law who are appointed by the Commissioner. Each 
     case shall be heard by at least 3 members of the Board, the 
     members hearing such case to be designated by the 
     Commissioner.''.
       (c) Determination of Fees.--Section 31(a) of the Act of 
     July 5, 1946 (commonly referred to as the Trademark Act of 
     1946) (15 U.S.C. 1113(a)) is amended by striking the second 
     and third sentences and inserting the following: ``Fees 
     established under this subsection may be adjusted by the 
     Commissioner, after consulting with the Trademark Office 
     Management Advisory Board in accordance with section 
     53(a)(2)(C) of this Act and after notice and opportunity for 
     full participation by interested public and private parties. 
     The Director of the United States Patent and Trademark 
     Organization shall determine whether such fees are consistent 
     with the policy direction of the Secretary of Commerce.''.

     SEC. 116. SUITS BY AND AGAINST THE ORGANIZATION.

       (a) Actions Under United States Law.--Any civil action or 
     proceeding to which the United States Patent and Trademark 
     Organization is a party is deemed to arise under the laws of 
     the United States. The Federal courts shall have exclusive 
     jurisdiction over all civil actions by or against the 
     Organization.
       (b) Representation by the Department of Justice.--The 
     United States Patent and Trademark Organization shall be 
     deemed an agency of the United States for purposes of section 
     516 of title 28, United States Code.
       (c) Prohibition on Attachment, Liens, or Similar Process.--
     No attachment, garnishment, lien, or similar process, 
     intermediate or final, in law or equity, may be issued 
     against property of the Organization.

     SEC. 117. FUNDING.

       (a) In General.--The activities of the United States Patent 
     and Trademark Organization and each office of the 
     Organization shall be funded entirely through fees payable to 
     the United States Patent Office (under

[[Page S8395]]

     section 42 of title 35, United States Code) and the United 
     States Trademark Office (under section 56 of the Act of July 
     5, 1946 (commonly known as the Trademark Act of 1946)), and 
     surcharges appropriated by Congress, to the extent provided 
     in appropriations Acts and subject to the provisions of 
     subsection (b).
       (b) Borrowing Authority.--
       (1) In general.--The United States Patent and Trademark 
     Organization is authorized to issue from time to time for 
     purchase by the Secretary of the Treasury its debentures, 
     bonds, notes, and other evidences of indebtedness (hereafter 
     in this subsection referred to as ``obligations'') to assist 
     in financing the activities of the United States Patent 
     Office and the United States Trademark Office. Borrowing 
     under this section shall be subject to prior approval in 
     appropriations Acts. Such borrowing shall not exceed amounts 
     approved in appropriations Acts.
       (2) Borrowing authority.--Any borrowing under this 
     subsection shall be repaid only from fees paid to the Office 
     for which such obligations were issued and surcharges 
     appropriated by Congress. Such obligations shall be 
     redeemable at the option of the United States Patent and 
     Trademark Organization before maturity in the manner 
     stipulated in such obligations and shall have such maturity 
     as is determined by the United States Patent and Trademark 
     Organization with the approval of the Secretary of the 
     Treasury. Each such obligation issued to the Treasury shall 
     bear interest at a rate not less than the current yield on 
     outstanding marketable obligations of the United States of 
     comparable maturity during the month preceding the issuance 
     of the obligation as determined by the Secretary of the 
     Treasury.
       (3) Purchase of obligations.--The Secretary of the Treasury 
     shall purchase any obligations of the United States Patent 
     and Trademark Organization issued under this subsection and 
     for such purpose the Secretary of the Treasury is authorized 
     to use as a public-debt transaction the proceeds of any 
     securities issued under chapter 31 of title 31, United States 
     Code, and the purposes for which securities may be issued 
     under that chapter are extended to include such purpose.
       (4) Treatment.--Payment under this subsection of the 
     purchase price of such obligations of the United States 
     Patent and Trademark Organization shall be treated as public 
     debt transactions of the United States.

     SEC. 118. TRANSFERS.

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

     SEC. 119. USE OF ORGANIZATION NAME.

       The use of the terms ``United States Patent and Trademark 
     Organization'', ``Patent and Trademark Office'', ``United 
     States Patent Office'', ``Patent Office'', ``United States 
     Trademark Office'', ``Trademark Office'', or any combination 
     of such terms, as the name or part thereof under which an 
     individual or entity does business, is prohibited. A 
     violation of this section may be enjoined by any Federal 
     court at the suit of the Organization. In any such suit, the 
     Organization shall be entitled to statutory damages of $1,000 
     for each day during which such violation continues or is 
     repeated following notice by the Organization and, in 
     addition, may recover actual damages flowing from such 
     violations.

            Subtitle B--Effective Date; Technical Amendments

     SEC. 131. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect 4 months after the date of the enactment of this Act.

     SEC. 132. TECHNICAL AND CONFORMING AMENDMENTS.

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

``I. United States Patent Office..............................1.''.....

       (2) Heading.--The heading for part I of title 35, United 
     States Code, is amended to read as follows:

                ``PART I--UNITED STATES PATENT OFFICE''.

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

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

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

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

``Sec.
``1. Establishment.
``2. Powers and duties.
``3. Officers and employees.
``4. Restrictions on officers and employees as to interest in patents.
``5. Patent Office Management Advisory Board.
``6. Duties of Commissioner.
``7. Board of Patent Appeals and Interferences.
``8. Library.
``9. Classification of patents.
``10. Certified copies of records.
``11. Publications.
``12. Exchange of copies of patents with foreign countries.
``13. Copies of patents for public libraries.
``14. Annual report to Congress.''.
       (5) Commissioner of patents and trademarks.--(A) Section 
     41(h)(1) of title 35, United States Code, is amended by 
     striking ``Commissioner of Patents and Trademarks'' and 
     inserting ``Commissioner''.
       (B) Section 155 of title 35, United States Code, is amended 
     by striking ``Commissioner of Patents and Trademarks'' and 
     inserting ``Commissioner''.
       (C) Section 155A(c) of title 35, United States Code, is 
     amended by striking ``Commissioner of Patents'' and inserting 
     ``Commissioner''.
       (6) Patent and trademark office.--The provisions of title 
     35, United States Code, are amended by striking ``Patent and 
     Trademark Office'' each place it appears and inserting 
     ``Patent Office''.
       (7) Secretary of commerce.--Section 157(d) of title 35, 
     United States Code, is amended by striking ``Secretary of 
     Commerce'' and inserting ``Director of the United States 
     Patent and Trademark Organization''.
       (b) Amendments to the Trademark Act of 1946.--
       (1) References.--All amendments in this subsection refer to 
     the Act of July 5, 1946 (commonly referred to as the 
     Trademark Act of 1946).
       (2) Amendments relating to commissioner.--Section 61 (as 
     redesignated by section 115(a)(2) of this Act) is amended by 
     striking the undesignated paragraph relating to the 
     definition of the term ``Commissioner'' and inserting the 
     following:
       ``The term `Commissioner' means the Commissioner of 
     Trademarks.''.
       (3) Amendments relating to patent and trademark office.--
     (A) Section 1(a)(1) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (B) Section 1(a)(2) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (C) Section 1(b)(1) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (D) Section 1(b)(2) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (E) Section 1(d)(1) is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (F) Section 1(e) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (G) Section 2(d) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (H) Section 7(a) is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (I) Section 7(d) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (J) Section 7(e) is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (K) Section 7(f) is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (L) Section 7(g) is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (M) Section 8(a) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (N) Section 8(b) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (O) Section 10 is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (P) Section 12(a) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.

[[Page S8396]]

       (Q) Section 13(a) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (R) Section 13(b)(1) is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (S) Section 15(2) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (T) Section 17 is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (U) Section 21(a)(2) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (V) Section 21(a)(3) is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (W) Section 21(a)(4) is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (X) Section 21(b)(3) is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (Y) Section 21(b)(4) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (Z) Section 24 is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (AA) Section 29 is amended by striking ``Patent and 
     Trademark Office'' each place such term appears and inserting 
     ``Trademark Office''.
       (BB) Section 30 is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (CC) Section 31(a) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (DD) Section 34(a) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (EE) Section 34(d)(1)(B)(i) is amended by striking ``Patent 
     and Trademark Office'' and inserting ``Trademark Office''.
       (FF) Section 35(a) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (GG) Section 36 is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (HH) Section 37 is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (II) Section 38 is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (JJ) Section 39(b) is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (KK) Section 41 is amended by striking ``Patent and 
     Trademark Office'' and inserting ``Trademark Office''.
       (LL) Section 61 (as redesignated under section 115(a)(2) of 
     this Act) is amended in the undesignated paragraph relating 
     to the definition of ``registered mark''--
       (i) by striking ``Patent and Trade Mark Office'' and 
     inserting ``Trademark Office; and
       (ii) by striking ``Patent and Trade Office'' and inserting 
     ``Trademark Office''.
       (MM) Section 72(a) (as redesignated under section 115(a)(2) 
     of this Act) is amended by striking ``Patent and Trademark 
     Office'' and inserting ``Trademark Office''.
       (NN) Section 76 (as redesignated under section 115(a)(2) of 
     this Act) is amended by striking ``Patent and Trademark 
     Office'' and inserting ``Trademark Office''.
       (c) Amendments to Title 5.--Title 5, United States Code, is 
     amended--
       (1) in section 5102(c)(23)--
       (A) by striking ``examiners-in-chief'' in each place it 
     appears and inserting ``administrative patent judges''; and
       (B) by striking ``Office, Department of Commerce'' and 
     inserting ``Organization''; and
       (2) in section 5316--
       (A) by striking ``Commissioner of Patents, Department of 
     Commerce.''; and
       (B) by striking:
       ``Deputy Commissioner of Patents and Trademarks.
       ``Assistant Commissioner for Patents.
       ``Assistant Commissioner for Trademarks.''.
       (d) Amendment to Title 31.--Section 9101(3) of title 31, 
     United States Code, is amended by adding at the end the 
     following:
       ``(R) the United States Patent and Trademark 
     Organization.''.
       (e) Amendments to Inspector General Act of 1978.--Section 
     11 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
     amended--
       (1) in paragraph (1) by striking ``or the Commissioner of 
     Social Security, Social Security Administration;'' and 
     inserting ``the Commissioner of Social Security, Social 
     Security Administration; or the Director of the United States 
     Patent and Trademark Organization, United States Patent and 
     Trademark Organization;''; and
       (2) in paragraph (2) by striking ``or the Veterans' 
     Administration, or the Social Security Administration;'' and 
     inserting ``the Veterans' Administration, the Social Security 
     Administration, or the United States Patent and Trademark 
     Organization;''.

                  Subtitle C--Miscellaneous Provisions

     SEC. 141. REFERENCES.

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

     SEC. 142. EXERCISE OF AUTHORITIES.

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

     SEC. 143. SAVINGS PROVISIONS.

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

     SEC. 144. TRANSFER OF ASSETS.

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

     SEC. 145. DELEGATION AND ASSIGNMENT.

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

[[Page S8397]]

     SEC. 146. AUTHORITY OF DIRECTOR OF THE OFFICE OF MANAGEMENT 
                   AND BUDGET WITH RESPECT TO FUNCTIONS 
                   TRANSFERRED.

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

     SEC. 147. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.

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

     SEC. 148. AVAILABILITY OF EXISTING FUNDS.

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

     SEC. 149. DEFINITIONS.

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

   Subtitle D--Establishment of the Under Secretary of Commerce for 
                      Intellectual Property Policy

     SEC. 151. UNDER SECRETARY OF COMMERCE FOR INTELLECTUAL 
                   PROPERTY POLICY.

       (a) Appointment.--There shall be within the Department of 
     Commerce an Under Secretary of Commerce for Intellectual 
     Property Policy, who shall be appointed by the President, by 
     and with the advice and consent of the Senate, at level III 
     of the Executive Schedule. On or after the effective date of 
     this title, the President may designate an individual to 
     serve as the Acting Under Secretary until the date on which 
     an Under Secretary qualifies under this subsection.
       (b) Duties.--The Under Secretary of Commerce for 
     Intellectual Property Policy, under the direction of the 
     Secretary of Commerce, shall perform the following functions 
     with respect to intellectual property policy:
       (1) Grant patents and register trademarks.
       (2) In coordination with the Under Secretary of Commerce 
     for International Trade, promote exports of goods and 
     services of the United States industries that rely on 
     intellectual property.
       (3) Advise the President, through the Secretary of 
     Commerce, on national and certain international issues 
     relating to intellectual property policy, including issues in 
     the areas of patents, trademarks, and copyrights.
       (4) Advise Federal departments and agencies on matters of 
     intellectual property protection in other countries.
       (5) Provide guidance, as appropriate, with respect to 
     proposals by agencies to assist foreign governments and 
     international intergovernmental organizations on matters of 
     intellectual property protection.
       (6) Conduct programs and studies related to the 
     effectiveness of intellectual property protection throughout 
     the world.
       (7) Advise the Secretary of Commerce on programs and 
     studies relating to intellectual property policy that are 
     conducted, or authorized to be conducted, cooperatively with 
     foreign patent and trademark offices and international 
     intergovernmental organizations.
       (8) In coordination with the Department of State, conduct 
     programs and studies cooperatively with foreign intellectual 
     property offices and international intergovernmental 
     organizations.
       (c) Deputy Under Secretaries.--To assist the Under 
     Secretary of Commerce for Intellectual Property Policy, the 
     Secretary of Commerce shall appoint a Deputy Under Secretary 
     for Patent Policy and a Deputy Under Secretary for Trademark 
     Policy, as members of the Senior Executive Service in 
     accordance with the provisions of title 5, United States 
     Code. The Deputy Under Secretaries shall perform such duties 
     and functions as the Under Secretary shall prescribe.
       (d) Compensation.--Section 5314 of title 5, United States 
     Code, is amended by adding at the end the following: ``Under 
     Secretary of Commerce for Intellectual Property Policy.''
       (e) Funding.--Funds available to the United States Patent 
     and Trade Organization shall be made available for all 
     expenses of the Office of the Under Secretary of Commerce for 
     Intellectual Property Policy, subject to prior approval in 
     appropriations Acts. Amounts made available under this 
     subsection shall not exceed 2 percent of the projected annual 
     revenues of the United States Patent and Trademark 
     Organization from fees for services and goods of that 
     Organization. The Secretary of Commerce shall determine the 
     budget requirements of the Office of the Under Secretary for 
     Intellectual Property Policy.
       (f) Consultation.--In connection with the performance of 
     his duties under this section, the Under Secretary shall, on 
     appropriate matters, consult with the Register of Copyrights.

     SEC. 152. RELATIONSHIP WITH EXISTING AUTHORITIES.

       (a) No Derogation.--Nothing in section 151 shall derogate 
     from the duties of the United States Trade Representative or 
     from the duties of the Secretary of State. In addition, 
     nothing in this title shall derogate from the duties and 
     functions of the Register of Copyrights or otherwise alter 
     current authorities relating to copyright matters.
       (b) Clarification of Authority of the Copyright Office.--
     Section 701 of title 17, United States Code, is amended--
       (1) by redesignating subsections (b) through (e) as 
     subsections (c) through (f), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) In addition to the functions and duties set out 
     elsewhere in this chapter, the Register of Copyrights shall 
     perform the following functions:
       ``(1) Advise Congress on national and international issues 
     relating to copyright, semiconductor chip protection, and 
     related matters.
       ``(2) Provide information and assistance to Federal 
     departments and agencies and the Judiciary on national and 
     international issues relating to copyright, semiconductor 
     chip protection, and related matters.
       ``(3) Participate in meetings of international 
     intergovernmental organizations and meetings with foreign 
     government officials relating to copyright, semiconductor 
     chip protection, and related matters, including as a member 
     of United States delegations as authorized by the appropriate 
     Executive Branch authority.
       ``(4) Conduct studies and programs regarding copyright, 
     semiconductor chip protection, and related matters, the 
     administration of the Copyright Office, or any function 
     vested in the Copyright Office by law, including educational 
     programs conducted cooperatively with foreign intellectual 
     property offices and international intergovernmental 
     organizations.
       ``(5) Perform such other functions as Congress may direct, 
     or as may be appropriate in furtherance of the functions and 
     duties specifically set forth in this title.''

 Mr. LEAHY. Mr. President, I am here once again to talk about 
S. 507, the Omnibus Patent Act of 1997. On this date back in 1878, a 
gentleman named Thaddeus Hyatt was granted a patent for reinforced 
concrete. Now, 120 years later, the Senate is refusing to reinforce 
American innovation by failing to take concrete action to reform our 
nation's patent laws.
  We are presented with an opportunity that will not soon repeat 
itself--an opportunity to pass S. 507 and give U.S. inventors longer 
patent terms, put more royalties in their pockets, save them money in 
costly patent litigation, and avoid wasting their development resources 
on duplicative research. At the same time, we can get our new 
technology more rapidly into the marketplace and make U.S. companies 
more competitive globally.
  Remaining globally competitive is not an idle concern. The failure of 
this body to enact the reforms of our patent system contained in S. 507 
has given foreign entities applying for and receiving patents in the 
U.S. unfair advantages over U.S. firms--advantages that U.S. persons 
filing and doing business abroad do not have. This ability to keep U.S. 
inventors in the dark about the latest technological developments does 
not work to our economic advantage. Why are we turning our backs on our 
businesses, small and large, by not voting on this bill?
  I have made recent speeches citing the strong support this 
legislation has around the country. This legislation has more than just 
Vermont or any state in mind. It has the entire country in its best 
interest. Our 200 year old patent system has provided protections to 
many of our inventions that have led to our global economic leadership 
position in the world marketplace. However, that leadership position is 
being threatened. Litigation has increased. Small inventors have been 
taken advantage of. Inventors and businesses are asking for our help 
and requesting that we pass S. 507.
  The Senate Judiciary Committee reported this bill out over a year ago 
by an overwhelmingly bipartisan vote of 17-1, 17-1, and this bill has 
yet to see the light of day on the floor. No longer can we turn the 
other cheek when

[[Page S8398]]

American business lets out such a cry for help. We need to bring this 
bill to the floor now and to pass it. We must not squander this 
opportunity to not only update our patent system but to come to 
America's defense.
  I inserted into the Record on June 23, letters of support from the 
White House Conference on Small Businesses, the National Association of 
Women Business Owners, the Small Business Technology Coalition, 
National Small Business United, the National Venture Capital 
Association, and the 21st Century Patent Coalition.
  On July 10, I inserted in the Record additional letters of support 
from The Chamber of Commerce of the United States of America; the 
Pharmaceutical Research and Manufactures of American, PhRMA; the 
American Automobile Manufacturers Association; the Software Publishers 
Association; the Semiconductor Industry Association; the Business 
Software Alliance; the American Electronics Association; and the 
Institute of Electrical and Electronics Engineers, Inc.
  I now ask unanimous consent that additional letters of support for S. 
507 be included in the Record. These letters are from IBM; the 
Biotechnology Industry Organization; the International Trademark 
Association; 3M; Intel Corporation; Caterpillar; AMP Incorporated; and 
Hewlett-Packard Company.
  There being no objection, the letters were ordered to be printed in 
the Record, as follows:

                                      Hewlett-Packard Company,

                                     Palo Alto, CA, June 22, 1998.
     Hon. Patrick J. Leahy,
     U.S. Senate, Russell Senate Office Building, Washington, DC.
       Dear Senator Leahy: S. 507, the Omnibus Patent Act, has 
     been reported out of the Judiciary Committee, but it appears 
     that Majority Leader Lott needs some encouragement to 
     schedule the bill for floor action. Hewlett-Packard Company 
     strongly supports enactment of S. 507 and would appreciate 
     your support in urging Senator Lott to put the bill on the 
     calendar.
       Enactment of S. 507 would assure that inventors can receive 
     a full 17 years--or more--of patent protection if they pursue 
     their patent claims in a timely manner. It would also 
     streamline patent operations to expedite processing and 
     accelerate the dissemination of new technologies for 
     continuing advancement in products and services.
       Significantly, S. 507 achieves these important goals 
     without threatening a return to the ``submarine patent'' 
     system that existed before the 1995 reform. Under the old 
     policy, an inventor could manipulate the patent system to 
     stretch the term even while withholding the new knowledge 
     from society. Prior to 1995, inventors could wait until the 
     technology had ripened, and then essentially extort license 
     fees from another inventor who had independently, in good 
     faith, created the same or a similar invention.
       While ``submarine patents'' are infrequent, when they 
     strike, they are egregious. In an HP case, for example, the 
     company has paid millions of dollars in royalties to a 
     Swedish inventor whose patent has expired in every other 
     country except the United States. This inventor contributed 
     nothing to the technology that is in use, in fact, he did not 
     offer to work with the consortium that was developing the 
     technology in an open-systems environment. A more thorough 
     explanation of that case is attached for your review.
       Senator Hatch and other supporters of S. 507 have worked 
     diligently with small business and independent inventors to 
     resolve concerns about the bill. It is a good compromise for 
     a more effective patent system as we head into the 21st 
     century. HP urges your support for S. 507 without weakening 
     amendments that would revive the submarine patent system.
           Sincerely,
     Lew Platt.
                                  ____



                                    IBM, Internet Media Group,

                                 Essex Junction, VT, June 6, 1998.
     Hon. Patrick Leahy,
     U.S. Senate, Washington, DC.
       Dear Senator Leahy: As an inventor I rely on the strength 
     of the U.S. patent system to legally protect my invention(s). 
     I am also the chairman of an ANSI standardization committee 
     (NCITS L3.1) which represents the United States in an 
     International Standardization Forum (ISO/IEC JTC 1/SC 29/WG 
     11). Our committee has developed the Emmy Award winning 
     standard called MPEG-2, a standard which may have never come 
     to pass had it not been for strong International patent 
     protection. We are currently working on the future of 
     International Multimedia (MPEG-4), a standard which promises 
     to be as popular and widely used as MPEG-2 will be. The 
     strength of the patent laws is essential to promoting 
     participation and the development of International Standards. 
     However, the system which for years has effectively 
     encouraged innovation and protected inventors, is no longer 
     effective. As significant number of ways have been found to 
     abuse it, such as people and/or companies obtaining 
     inappropriate patents and in some cases pilfering others' 
     hard-earned invention. This threatens to undermine America's 
     position as the global leader in technology innovation. I am 
     proud that my work as an inventor has contributed to IBM's 
     patent portfolio.
       There is now legislation pending before you that will help 
     restore leadership and integrity to the U.S. patent system. 
     It is responsive to today's fast paced, highly competitve 
     environment, and it will protect inventors like me. I am 
     writing to ask you to urge Majority Leader Lott (R-MS) to 
     bring S. 507, the Omnibus Patent Act of 1997, to the Senate 
     floor as soon as possible and for you to support its final 
     passage.
       The bipartisan Omnibus Patent Act of 1997, S. 507, was 
     passed out of the Senate Judiciary Committee 17-1 and has not 
     yet been brough up for a floor vote. The House of 
     Representatives also passed a similar bill in May 1997. Five 
     former Commissioners of the Patent and Trademark Office (PTO) 
     support this bill. A Senate floor vote is the only way to 
     continue the process to enact this legislation that would 
     help protect inventors and companies from patent system 
     abuse.
       Please help protect America's intellectual property and 
     urge Majority Leader Lott (R-MS) to bring this bill to the 
     floor for a vote. Thank you for your attention to this 
     matter, and as a concerned constituent, I request your 
     support of this legislation.
           Sincerly,
                                               Peter P. Schirling,
                                                  Senior Engineer.
                                 ______
                                 
                                            Biotechnology Industry


                                                 Organization,

                                                    June 18, 1998.
     U.S. Senator,
     Washington, DC.

     Re: Scheduling Debate on Patent Reform Legislation, S. 507 
         (Hatch/Leahy)
       Dear Senator: We are writing to urge you to support 
     scheduling of the patent reform legislation, S. 507, on the 
     Senate floor before the August recess. This legislation is 
     supported by an overwhelming majority of the Senators and the 
     few Senators who have amendments to offer can easily be 
     accommodated in a time agreement.
       BIO has been working on this critical legislation for four 
     years, the House passed the bill by a lopsided and bipartisan 
     margin, and it emerged from the Senate Judiciary Committee on 
     a near-unanimous vote. There are very few issues for the 
     Senate debate or conference with the House. It should be easy 
     to complete action on this bill and enact it into law this 
     session. Doing so will be a major victory for biomedical and 
     other research.
       The bill answers the concerns raised by the biotechnology 
     industry and other high technology industries regarding the 
     erosion of patents caused by the adoption of the GATT 20 
     year-from-filing regime. We need to enact this bill to 
     provide vital protection to biotechnology firms conducting 
     research on cures and therapies for cancer, AIDS, 
     Alzheimer's, and other deadly and disabling diseases.
       The Biotechnology Industry Organization (BIO) represents 
     almost 800 companies and organizations that use or support 
     biotechnology research. Our companies are finding the next 
     generation of medicines and cures for endemic diseases that 
     diminish the quality of life for all Americans. On a per 
     capita basis, our companies invest more in research and 
     development than any other industry--almost ten times the 
     national average--or about $100,000 per employee per year. 
     This industries investment (almost 10 billion dollars in 
     1998) is protected primarily through the patent system.
       Patents as an incentive for this critical research. Without 
     patents this research would stop because no investor will 
     fund this research without patents. This is why the patent 
     term protections in this bill are so important. The Hatch-
     Leahy patent term bill provides complete and unequivocal 
     protections to ensure that diligent patent applicants will 
     not lose patent term under the new GATT 20 year patent law.
       There is no industry which has lost more in patent 
     protection under the new GATT 20 year patent term than the 
     biotechnology industry. Our industry has been working for 
     three years to secure protections so that diligent patent 
     applicants cannot, and will not, lose patent protection under 
     this new law. It is imperative that the GATT law be amended 
     to protect diligent patent applicants this year.
       Diligent patent applicants cannot lose patent term under 
     the patent term provisions of Hatch-Leahy bill. If there are 
     any delays in the grant of a patent by the Patent and 
     Trademark Office (PTO) which are beyond the applicant's 
     control, the applicant is given extra patent term--day-for-
     day compensation. This is a similar system which now applies 
     when a patent holder loses patent term due to delays in the 
     approval of a product by the Food and Drug Administration. 
     So, the solution provided by the Hatch-Leahy bill is tried 
     and tested and it works.
       In addition to these patent term provisions, the Hatch-
     Leahy bill also provides for publication of internationally 
     filed patent applications 18 months after filing and BIO 
     supports this provision as well. Our companies file for 
     patents in Europe and Japan where all applications are 
     published after 18 months. Therefore 18 month publication in 
     the United States will place U.S. companies on equal footing 
     to their European and Asian competitors.
       We enthusiastically support the patent term and publication 
     provisions of the Hatch-Leahy bill, know that it solves the 
     patent term problem, urge you to support

[[Page S8399]]

     scheduling of this bill and support final passage. The 
     current GATT/TRIPS law is very problematic for the 
     biotechnology industry and enactment of S. 507 is needed to 
     eliminate the disincentive for biomedical research.
       Please contact us with any questions about this critical 
     issue; we would be pleased to meet with you to discuss them. 
     857-0244.
           Sincerely,
     Charles E. Ludlam,
       Vice President for Government Relations.
     Dave Schmickel,
       Patent and Legal Counsel.
                                  ____

                                           International Trademark


                                                  Association,

                                      Washington, DC, May 8, 1998.
     Hon. Patrick J. Leahy,
     U.S. Senate, Russell Senate Office Building, Washington, DC.
       Dear Senator Leahy: You already know of our association's 
     strong support for S. 507, the Omnibus Patent Reform Act. Our 
     members are trademark owners located in every state of the 
     union. This bipartisan bill makes important changes to the 
     U.S. Patent and Trademark Office (USPTO) that are necessary 
     to enable the USPTO to respond efficiently and effectively to 
     the tremendous growth in trademark applications generated by 
     our robust economy.
       With next week designated as ``High Tech Week'' in the 
     Senate, where legislation dealing with new technology will be 
     considered, there is no bill that is more deserving of 
     attention and support at this time than S. 507. By converting 
     the USPTO into a government corporation that is 100% user-fee 
     funded, S. 507 will free the agency from constraints which 
     have long hampered efficient operations. Passage of this 
     important legislation will ensure that new products and 
     inventions receive the protection they need both here at home 
     and in global markets.
       S. 507 provides great value to intellectual property owners 
     and should be allowed to proceed to the Senate floor. We ask 
     for your help in gaining passage of S. 507.
           Sincerely,
                                                    David Stimson,
     President.
                                  ____

                                             3M Company, Office of


                                Intellectual Property Counsel,

                                                     June 9, 1998.
     Hon. Patrick Leahy,
     U.S. Senate, Washington, DC.
       Dear Senator Leahy: I am writing to express the strong 
     support of the 3M Company for the reforms contained in S. 
     507, the Hatch/Leahy Omnibus Patent Reform Act, and to 
     request that you ask Senator Lott to schedule it for a Senate 
     vote as soon as possible. S. 507 is critically important to 
     U.S. industry. Its reforms will strengthen and improve the 
     United States patent system, allowing American industry to 
     compete more effectively with its foreign competition.
       S. 507 will give the U.S. Patent and Trademark Office the 
     administrative flexibility to operate at peak efficiency, 
     save inventors money, and accelerate patent processing. It 
     will allow American inventors and companies to see foreign 
     technology contained in U.S. patent applications more than a 
     year earlier than today, while ensuring that domestic 
     inventors who choose not to take advantage of publication 
     before patent grant may continue to do so if they do not file 
     outside of the U.S. The legislation will guarantee diligent 
     applications a patent term of at least 17 years from grant 
     and most will receive an even longer term of exclusivity. S. 
     507 would also make existing reexamination procedures more 
     effective by allowing greater third party participation, 
     while adding numerous safeguards to protect against abuse.
       One specific reform of S. 507 which 3M most strongly 
     supports is that of creating a prior domestic commercial use 
     defense. This long overdue reform will protect manufacturing 
     jobs in American companies like 3M by ensuring that a late 
     filed patent--nearly one-half of U.S. patents are foreign 
     owned--will not disrupt domestic manufacturing operations. 
     Important technology underlying our successful Post-it 
      Notes such as those attached to this letter--and 
     the jobs of the American workers who produce them--will be 
     made safer against foreign attack by the passage of S. 507.
       The reforms in S. 507 are designed to improve the 
     functioning of the patent system for all users, large and 
     small. In fact, Senators Hatch and Leahy have recently agreed 
     to amend their bill on the Senate floor in response to 
     requests from small businesses. With these changes, key small 
     business constituencies such as the Technology Chairs of the 
     White House Conference on Small Business, the National 
     Association of Women Business Owners, and the Small Business 
     Technology Coalition have expressed their enthusiastic 
     support for S. 507.
       U.S. industry needs these patent reforms now. Support S. 
     507 and urge Senator Lott to bring it to a vote promptly.
           Sincerely,

                                             Gary L. Griswold,

                                      Staff Vice President and    
     Chief Intellectual Property Counsel.
                                  ____



                                            Intel Corporation,

                                   Santa Clara, CA, June 12, 1998.
     Hon. Patrick J. Leahy, U.S. Senate, Russell Senate Office 
       Building.
       Dear Senator Leahy: For the past four years, Intel has been 
     an active participant in the 21st Century Patent Coalition, 
     which supports the enactment of patent reform legislation (S. 
     507). S. 507 would accomplish three broad goals of vital 
     importance to our industry: modernizing patent 
     administration, improving and simplifying dispute resolution 
     procedures in the Patent and Trademark Office, and 
     strengthening inventors' rights in a number of ways, most 
     importantly by protecting them from loss of term due to 
     Patent Office delays. Our coalition has the support of over 
     80 major American industrial companies and 22 industry 
     associations that are composed, primarily, of small 
     businesses.
       Now, S. 507--which passed the House on a voice vote last 
     year, and was approved in the Senate Judiciary by a vote of 
     17-1--is ready for floor action in the Senate. Our coalition 
     has worked hard to address any and all legitimate concerns 
     about the taxt of the bill and its impact upon small business 
     entities and independent inventors, and we believe that it 
     would, if enacted, create the most pro-inventor patent system 
     in the world. It has recently received the enthusiastic 
     support of the White House Conference on Small Business 
     Technology Chairs, the National Association of Women Business 
     Owners, and the Small Business Technology Coalition.
       The patent system we have today will be ill equipped to 
     serve the needs of inventors in the next century if the 
     improvements provided for in S. 507 are not made. We ask for 
     your help in scheduling S. 507 for a floor vote, and for your 
     support for the Committee bill on final passage.
       Your support will help preserve America's role as the 
     world's technology leader.
           Sincerely,
                                                   Carl Silverman,
     Director of Intellectual Property.
                                  ____



                                             Caterpillar Inc.,

                                         Peoria, IL, June 3, 1998.
     Hon. Patrick J. Leahy,
     Russell Senate Office Building,
     Washington, DC.
       Dear Senator Leahy: I am writing to express Caterpillar's 
     strong support for S. 507 (Hatch/Leahy), The Omnibus Patent 
     Act of 1997. As you know, S. 507 was reported from the Senate 
     Judiciary Committee on a vote of 17-1 and is awaiting Senate 
     floor action. A companion bill passed the House last year.
       S. 507 would modernize the U.S. patent system through major 
     improvements in our patent laws that will greatly benefit 
     America's large and small businesses, inventors and 
     entrepreneurs. For Caterpillar, this legislation will mean 
     reduced costs, reduced risk, reduced bureaucracy, fewer 
     lawsuits, more certainty regarding property rights, and 
     generally a faster, more responsive patent system.
       Equally significant, key small business groups now agree 
     that S. 507 will streamline the patent process and help 
     America's inventors who currently suffer from delays in the 
     patent office that are not their fault.
       It's time for the Senate to vote on this bill to help 
     strengthen the U.S. economy and keep jobs in America.
       I urge you to contact Majority Leader Lott in support of 
     early scheduling of S. 507 for floor debate, and support the 
     efforts of its sponsors to adopt a bill without weakening 
     amendments.
           Sincerely,
                                                William B. Heming,
     General Patent Counsel.
                                  ____



                                             AMP Incorporated,

                                     Washington, DC, June 3, 1998.
     Hon. Patrick J. Leahy,
     U.S. Senate, Russell Senate Office Building, Washington, DC.
       Dear Senator Leahy: Please ask Senator Lott to bring S. 
     507, the Hatch-Leahy Omnibus Patent Act, to the floor as soon 
     as possible. This patent reform is important to AMP, our 
     employees, and the hundreds of inventors in our company who 
     think up new ideas to produce better products, to keep our 
     company competitive, and to create new jobs.
       It's time to bring this bill up for a vote. The technology 
     chairs of the White House Conference on Small Business have 
     approved S. 507 because, ``(it) will lower the litigation 
     costs for small business, make it easier to know what areas 
     of technology are open for innovation, and will go a long way 
     towards giving us a more level playing field vis-a-vis our 
     foreign competitors.'' AMP and the dozens of other companies 
     and associations in the 21th Century Patent Coalition agree.
       This bill has undergone months and months of scrutiny and 
     compromise and is now ready for a vote. I hope you'll 
     encourage the Majority Leader to schedule floor time for this 
     reasonable reform measure.
       If you need any more information about S. 507, please let 
     me know.
           Sincerely,
                                                  John Palafoutas,
                              Director, Federal Relations.
                                 ______
                                 

   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS ACT, 1999

                                 ______
                                 

                 HARKIN (AND OTHERS) AMENDMENT NO. 3175

  Mr. HARKIN (for himself, Mr. Leahy, Mr. Kennedy, Mr. Torricelli, Mr.

[[Page S8400]]

Durbin, Mr. Wellstone, Ms. Mikulski, Mrs. Murray, and Mr. Kerry) 
proposed an amendment to the bill, S. 2159, supra; as follows:

       On page 67, after line 23, insert the following:

     SEC. 7____. FOOD SAFETY INITIATIVE.

       (a) In General.--In addition to the amounts made available 
     under other provisions of this Act, there are appropriated, 
     out of any money in the Treasury not otherwise appropriated, 
     to carry out activities described in the Food Safety 
     Initiative submitted by the President for fiscal year 1999--
       (1) $98,000 to the Chief Economist;
       (2) $906,000 to the Economic Research Service;
       (3) $8,920,000 to the Agricultural Research Service;
       (4) $11,000,000 to the Cooperative State Research, 
     Education, and Extension Service;
       (5) $8,347,000 to the Food Safety and Inspection Service; 
     and
       (6) $37,000,000 to the Food and Drug Administration.
       1. Amendment of the No Net Cost Fund assessments to provide 
     for collection of all administrative costs not previously 
     covered and all crop insurance costs for tobacco. Section 
     106A of the Agricultural Act of 1949, as amended, 7 U.S.C. 
     1445-1(c), is hereby amended by, in (d)(7) changing ``the 
     Secretary'' to ``the Secretary; and'' and by adding a new 
     clause, (d)(8) read as follows:
       ``(8) Notwithstanding any other provision of this 
     subsection or other law, that with respect to the 1999 and 
     subsequent crops of tobacco for which price support is made 
     available and for which a Fund is maintained under this 
     section, an additional assessment shall be remitted over and 
     above that otherwise provided for in this subsection. Such 
     additional assessment shall be equal to: (1) the 
     administrative costs within the Department of Agriculture 
     that not otherwise covered under another assessment under 
     this section or under another provision of law; and (2) any 
     and all net losses in federal crop insurance programs for 
     tobacco, whether those losses be on price-supported tobacco 
     or on other tobaccos. The Secretary shall estimate those 
     administrative and insurance costs in advance. The Secretary 
     may make such adjustments in the assessment under this clause 
     for future crops as are needed to cover shortfalls or over-
     collections. The assessment shall be applied so that the 
     additional amount to be collected under this clause shall be 
     the same for all price support tobaccos (and imported tobacco 
     of like kind) which are marketed or imported into the United 
     States during the marketing year for the crops covered by 
     this clause. For each domestically produced pound of tobacco 
     the assessment amount to be remitted under this clause shall 
     be paid by the purchaser of the tobacco. On imported tobacco, 
     the assessment shall be paid by the importer. Monies 
     collected pursuant to this section shall be commingled with 
     other monies in the No Net Cost Fund maintained under this 
     section. The administrative and crop insurance costs that are 
     taken into account in fixing the amount of the assessment 
     shall be a claim on the fund and shall be transferred to the 
     appropriate account for the payment of administrative costs 
     and insurance costs at a time determined appropriate by the 
     Secretary. Collections under this clause shall not effect the 
     amount of any other collection established under this section 
     or under another provision of law but shall be enforceable in 
     the same manner as other assessments under this section and 
     shall be subject to the same sanctions for nonpayment.''
       2. Amendment of the No Net Cost Account assessments to 
     provide for collection of all administrative cost not 
     previously covered and all crop insurance costs. Section 106B 
     of the Agricultural Act of 1949, as amended, 7 U.S.C. 1445-2, 
     is amended by renumbering subsections ``(i)'' and ``(j)'' as 
     ``(j)'' and ``(k)'' respectively, and by adding a new 
     subsection ``(i)'' to read as follows:
       ``(i) Notwithstanding any other provision of this section 
     or other law, the Secretary shall require with respect to the 
     1999 and subsequent crops of tobacco for which price support 
     is made available and for which an account is maintained 
     under this section, that an additional assessment shall be 
     remitted over and above that otherwise provided for in this 
     subsection. Such additional assessment shall be equal to: (1) 
     the administrative costs within the Department of Agriculture 
     that are not otherwise covered under another assessment under 
     this section or under another provision of law; and (2) any 
     and all net losses in federal crop insurance programs for 
     tobacco, whether those losses be on price-supported tobacco 
     or on other tobaccos. The Secretary shall estimate those 
     administrative and insurance costs in advance. The Secretary 
     may make such adjustments in the assessments under this 
     clause for future crops as are needed to cover shortfalls or 
     over-collections. The assessment shall be applied so that the 
     additional amount to be collected under this clause shall be 
     the same for all price support tobaccos (and imported tobacco 
     of like kind) which are marketed or imported into the United 
     States during the marketing year for the crops covered by 
     this clause. For each domestically produced pound of tobacco 
     the assessment amount to be remitted under this clause shall 
     be paid by the purchaser of the tobacco. On imported tobacco, 
     the assessment shall be paid by the importer. Monies 
     collected pursuant to this section shall be commingled with 
     other monies in the No Net Cost Account maintained under this 
     section. The administrative and crop issuance costs that are 
     taken into account in fixing the amount of the assessment 
     shall be a claim on the Account and shall be transferred to 
     the appropriate account for the payment of administrative 
     costs and insurance costs at a time determined appropriate by 
     the Secretary. Collections under this clause shall not effect 
     the amount of any other collection established under this 
     section or under another provision of law but shall be 
     enforceable in the same manner as other assessments under 
     this section and shall be subject to the same sanctions for 
     nonpayment.''
       3. Elimination of the Tobacco Budget Assessment. 
     Notwithstanding any other provision of law, the provisions of 
     Section 106(g) of the Agricultural Act of 1949, as amended, 7 
     U.S.C. 1445(g) shall not apply or be extended to the 1999 
     crops of tobacco and shall not, in any case, apply to any 
     tobacco for which additional assessments have been rendered 
     under Sections 1 and 2 of this Act.
       Section 4(g) of the Commodity Credit Corporation Charter 
     Act (15 U.S.C. 714b(g)) is amended in the first sentence by 
     striking ``$193,000,000'' and inserting ``$177,000,000.''
       Amend the figure on page 12 line 20 by reducing the sum by 
     $13,500,000.
       Amend page 12 line 25 by striking ``law.'' and inserting in 
     lieu thereof the following: ``law, and an additional 
     $13,500,000 is provided to be available on October 1, 1999 
     under the provision of this paragraph.''
                                 ______
                                 

                        DODD AMENDMENT NO. 3176

  Mr. DODD proposed an amendment to the bill, S. 2159, supra; as 
follows:

       At the appropriate place in title VII, insert the 
     following:

     SEC. ____. NOTIFICATION OF RECALLS OF DRUGS AND DEVICES.

       (a) Drugs.--Section 505 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 355) is amended by adding at the end 
     the following:
       ``(o)(1) If the Secretary withdraws an application for a 
     drug under paragraph (1) or (2) of the first sentence of 
     subsection (e) and a class I recall for the drug results, the 
     Secretary shall take such action as the Secretary may 
     determine to be appropriate to ensure timely notification of 
     the recall to individuals that received the drug, including 
     using the assistance of health professionals that prescribed 
     or dispensed the drug to such individuals.
       ``(2) In this subsection:
       ``(A) The term `Class I' refers to the corresponding 
     designation given recalls in subpart A of part 7 of title 21, 
     Code of Federal Regulations, or a successor regulation.
       ``(B) The term `recall' means a recall, as defined in 
     subpart A of part 7 of title 21, Code of Federal Regulations, 
     or a successor regulation, of a drug.''.
       (b) Devices.--Section 518(e) of such Act (21 U.S.C. 
     360h(e)) is amended--
       (1) in the last sentence of paragraph (2), by inserting 
     ``or if the recall is a class I recall,'' after ``cannot be 
     identified''; and
       (2) by adding at the end the following:
       ``(4) In this subsection, the term `Class I' refers to the 
     corresponding designation given recalls in subpart A of part 
     7 of title 21, Code of Federal Regulations, or a successor 
     regulation.''.
       (c) Conforming Amendment.--Section 705(b) of such Act (21 
     U.S.C. 375(b)) is amended--
       (1) by striking ``or gross'' and inserting ``gross''; and
       (2) by striking the period and inserting ``, or a class I 
     recall of a drug or device as described in section 505(o)(1) 
     or 518(e)(2).''.
                                 ______
                                 

                  ROBB (AND OTHERS) AMENDMENT NO. 3177

  Mr. ROBB (for himself, Mr. Hollings, and Ms. Moseley-Braun) proposed 
an amendment to the bill, S. 2159, supra; as follows:

       On page 13, line 14, strike $97,200,000 and insert 
     $92,200,000, and on page 14, line 17, strike $437,082,000 and 
     insert $432,082,000. On page 18, line 1 strike $424,473,000 
     and insert $419,473,000. On page 19, line 23, strike 
     $93,000,000 and insert $88,000,000, on page 67, after line 
     23, add the following:
       Sec.  . Expenses for computer-related activities of the 
     Department of Agriculture funded through the Commodity Credit 
     Corporation pursuant to section 161(b)(1)(A) of P.L. 104-127 
     in fiscal year 1999 shall not exceed $50,000,000; provided, 
     that Section 4(g) of the Commodity Credit Corporation Charter 
     Act is amended by striking $178,000,000 and inserting 
     $173,000,000.

     SEC.  . WAIVER OF STATUE OF LIMITATIONS FOR CERTAIN 
                   DISCRIMINATION CLAIMS.

       (a) Definition of Eligible Claim.--In this section, the 
     term ``eligible claim'' means a non-employment-related claim 
     that was filed with the Department of Agriculture on or 
     before July 1, 1997 and alleges discrimination by the 
     Department of Agriculture at any time during the period 
     beginning on January 1, 1981, and ending on December 31, 
     1996.
       (1) in violation of the Equal Credit Opportunity Act (15 
     U.S.C. 1691 et seq.) in administering--
       (A) a farm ownership, farm operating, or emergency loan 
     funded from the Agricultural Credit Insurance Program 
     Account; or
       (B) a housing program established under title V of the 
     Housing Act of 1949; or

[[Page S8401]]

       (2) in the administration of a commodity program or a 
     disaster assistance program.
       (b)Waiver--To the extent permitted by the Constitution, an 
     eligible claim, if commenced not later than 2 years after the 
     date of the enactment of this Act, shall not be barred by 
     any statute of limitations.
       (c) Administrative Proceedings.
       (1) In general.--In lieu of bringing a civil action, a 
     claimant may seek a written determination on the merits of an 
     eligible claim by the Secretary of Agriculture if such claim 
     is filed with the Secretary within two years of the date of 
     enactment of this Act.
       (2) Time period for resolution of administrative claims.--
     To the maximum extent practicable, the Secretary shall, 
     within 180 days from the date an eligible claim is filed with 
     Secretary under this subsection, conduct an investigation, 
     issue a written determination, and propose a resolution in 
     accordance with this subsection.
       (3) Hearing and award.--The Secretary shall--
       (A) provide the claimant an opportunity for a hearing 
     before making the determination; and
       (B) award the claimant such relief as would be afforded 
     under the applicable statute from which the eligible claim 
     arose notwithstanding any statute of limitations.
       (d)-- Standard of Review.--Federal courts reviewing an 
     eligible claim under this section shall apply a de novo 
     standard of review.
       (e) Limitation on Administrative Awards and Settlement 
     Authority and Extension of Time.--
       (1) Limitation on administrative awards and settlement 
     authority.--A proposed administrative award or settlement 
     exceeding $75,000 (other than debt relief) of an eligible 
     claim--
       (A) shall not take effect until 90 days after notice of the 
     award or settlement is given to the Attorney General; and
       (B) shall not take effect if, during that 90 day period, 
     the Attorney General objects to the award or settlement.
       (2) Extension of time.--Notwithstanding subsections (b) and 
     (c), if an eligible claim is denied administratively, the 
     claimant shall have at least 180 days to commence a cause of 
     action in a Federal court of competent jurisdiction seeking a 
     review of such denial.
                                 ______
                                 

               BROWNBACK (AND DORGAN) AMENDMENT NO. 3178

  Mr. COCHRAN (for Mr. Brownback for himself and Mr. Dorgan) proposed 
an amendment to the bill, S. 2159, supra; as follows:

       On page 67, after line 23, add the following:

     SEC. 7  . CENSUS OF AGRICULTURE.

       (a) In General.--Section 2 of the Census of Agriculture Act 
     of 1997 (7 U.S.C. 2204g) is amended--
       (1) in subsection (b) by inserting at the end the 
     following: ``In fiscal year 1999 the Secretary of Agriculture 
     is directed to continue to revise the Census of Agriculture 
     to eliminate redundancies in questions asked of farmers by 
     USDA.''
       (2) in subsection (d) by deleting in paragraph (1) ``who 
     willfully gives'' and inserting in its place ``shall not 
     give'', and deleting ``, shall be fined not more than $500''.
       (3) in subsection (d) by deleting in paragraph (2) ``who 
     refuses or willfully neglects'' and inserting in its place 
     ``shall not refuse or willfully neglect'', and deleting ``, 
     shall not be fined more than $100''.
                                 ______
                                 

                        LEVIN AMENDMENT NO. 3179

  Mr. COCHRAN (for Mr. Levin) proposed an amendment to the bill, S. 
2159, supra; as follows:

       On page 67, after line 23, add the following:

     SEC. ____. TREE ASSISTANCE PROGRAM.

       (a) In General.--The Secretary of Agriculture may use funds 
     for tree assistance made available under Public Law 105-174, 
     to carry out a tree assistance program to owners of trees 
     that were lost or destroyed as a result of a disaster or 
     emergency that was declared by the President or the Secretary 
     of Agriculture during the period beginning May 1, 1998, and 
     ending August 1, 1998, regardless of whether the damage 
     resulted in loss or destruction after August 1, 1998.
       (b) Administration.--Subject to subsection (c), the 
     Secretary shall carry out the program, to the maximum extent 
     practicable, in accordance with the terms and conditions of 
     the tree assistance program established under part 783 of 
     title 7, Code of Federal Regulations.
       (c) Eligibility.--A person shall be presumed eligible for 
     assistance under the program if the person demonstrates to 
     the Secretary that trees owned by the person were lost or 
     destroyed by May 31, 1999, as a direct result of fire blight 
     infestation that was caused by a disaster or emergency 
     described in subsection (a).
                                 ______
                                 

                  KERRY (AND ROBB) AMENDMENT NO. 3180

  Mr. COCHRAN (for Mr. Kerry for himself and Mr. Robb) proposed an 
amendment to the bill, S. 2159, supra; as follows:

       On page 67, after line 23, add the following:

     SEC. 7____. STUDY OF FUTURE FEDERAL AGRICULTURAL POLICIES.

       (a) In General.--On the request of the Commission on 21st 
     Century Production Agriculture, the Secretary of Agriculture, 
     acting through the Chief Economist of the Department of 
     Agriculture, shall make assistance and information available 
     to the Commission to enable the Commission to conduct a study 
     to guide the development of future Federal agricultural 
     policies.
       (b) Duties.--In conducting the study, the Commission 
     shall--
       (1) examine a range of future Federal agricultural policies 
     that may succeed the policies established under the 
     Agricultural Market Transition Act (7 U.S.C. 7201 et seq.) 
     for the 2003 and subsequent crops, and the impact of such 
     policies on farm income, the structure of agriculture, trade 
     competitiveness, conservation, the environment and other 
     factors;
       (2) assess the potential impact of any legislation enacted 
     through the end of the 105th Congress on future Federal 
     agricultural policies; and
       (3) review economic agricultural studies that are relevant 
     to future Federal agricultural policies.
       (c) Report.--Not later than December 31, 1999, the 
     Commission shall submit to the Committee on Agriculture of 
     the House of Representatives, the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate, and the Committee on 
     Appropriations of the House of Representatives and the Senate 
     the results of the study conducted under this section.
                                 ______
                                 

                       GRAHAM AMENDMENT NO. 3181

  Mr. COCHRAN (for Mr. Graham) proposed an amendment to the bill, S. 
2159, supra; as follows:

       On page 67, after line 23, add the following:

     SEC. ____. INDICATION OF COUNTRY OF ORIGIN OF IMPORTED 
                   PERISHABLE AGRICULTURAL COMMODITIES.

       (a) Definitions.--In this section:
       (1) Food service establishment.--The term ``food service 
     establishment'' means a restaurant, cafeteria, lunch room, 
     food stand, saloon, tavern, bar, lounge, or other similar 
     facility, operated as an enterprise engaged in the business 
     of selling foods to the public.
       (2) Perishable agricultural commodity; retailer.--The terms 
     ``perishable agricultural commodity'' and ``retailer'' have 
     the meanings given the terms in section 1(b) of the 
     Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 
     499a(b)).
       (b) Notice of Country of Origin Required.--Except as 
     provided in subsection (c), a retailer of a perishable 
     agricultural commodity imported into the United States shall 
     inform consumers, at the final point of sale of the 
     perishable agricultural commodity to consumers, of the 
     country of origin of the perishable agricultural commodity.
       (c) Exemption for Food Service Establishments.--Subsection 
     (b) shall not apply to a perishable agricultural commodity 
     imported into the United States to the extent that the 
     perishable agricultural commodity is--
       (1) prepared or served in a food service establishment; and
       (2)(A) offered for sale or sold at the food service 
     establishment in normal retail quantities; or
       (B) served to consumers at the food service establishment.
       (d) Method of Notification.--
       (1) In general.--The information required by subsection (b) 
     may be provided to consumers by means of a label, stamp, 
     mark, placard, or other clear and visible sign on the 
     imported perishable agricultural commodity or on the package, 
     display, holding unit, or bin containing the commodity at the 
     final point of sale to consumers.
       (2) Labeled commodities.--If the imported perishable 
     agricultural commodity is already individually labeled 
     regarding country of origin by the packer, importer, or 
     another person, the retailer shall not be required to provide 
     any additional information to comply with this section.
       (e) Violations.--If a retailer fails to indicate the 
     country of origin of an imported perishable agricultural 
     commodity as required by subsection (b), the Secretary of 
     Agriculture may assess a civil penalty on the retailer in an 
     amount not to exceed--
       (1) $1,000 for the first day on which the violation occurs; 
     and
       (2) $250 for each day on which the same violation 
     continues.
       (f) Deposit of Funds.--Amounts collected under subsection 
     (e) shall be deposited in the Treasury of the United States 
     as miscellaneous receipts.
       (g) Application of Section.--This section shall apply with 
     respect to a perishable agricultural commodity imported into 
     the United States after the end of the 6-month period 
     beginning on the date of the enactment of this Act.
                                 ______
                                 

                BUMPERS (AND OTHERS) AMENDMENT NO. 3182

  Mr. COCHRAN (for Mr. Bumpers for himself, Mr. Daschle, Mr. Leahy, 
Mrs. Boxer, Mr. Durbin, and Mr. Byrd) proposed an amendment to the 
bill, S. 2159, supra; as follows:

       Findings.--
       The President's budget submission includes unauthorized 
     user fees;
       It is unlikely these fees will be authorized in the 
     immediate future;
       The assumption of revenue from unauthorized user fees 
     results in a shortfall of funds available for programs under 
     the jurisdiction

[[Page S8402]]

     of the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Subcommittee;
       That among the programs for which additional funds can be 
     justified are:
       Human Nutrition Research;
       The Food Safety Initiative activities of the USDA and the 
     FDA;
       the Wetlands Reserve Program;
       the Conservation Farm Option Program;
       the Farmland Protection Program;
       the Inspector General's Law Enforcement Initiative;
       FDA pre-notification certification;
       FDA clinical pharmacology;
       FDA Office of Cosmetics and Color;
       the Rural Electric loan programs;
       the Pesticide Data Program;
       the Rural Community Advancement Program;
       civil rights activities; and
       Fund Rural America.
       Therefore, it is the sense of the Senate that, In the event 
     an additional allocation becomes available, the above 
     mentioned programs should be considered for funding.
                                 ______
                                 

               FEINGOLD (AND JEFFORDS) AMENDMENT NO. 3183

  Mr. COCHRAN (for Mr. Feingold for himself and Mr. Jeffords) proposed 
an amendment to the bill, S. 2159, supra; as follows:

       On page 67, after line 23, add the following:

     SEC. ____. OFFICE OF THE SMALL FARMS ADVOCATE.

       (a) Definition of Small Farm.--In this section, the term 
     ``small farm'' has the meaning given the term in section 506 
     of the Rural Development Act of 1972 (7 U.S.C. 2666).
       (b) Establishment.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary of Agriculture shall 
     establish and maintain in the Department of Agriculture an 
     Office of the Small Farms Advocate.
       (c) Functions.--The Office of the Small Farms Advocate 
     shall--
       (1) cooperate with, and monitor, agencies and offices of 
     the Department to ensure that the Department is meeting the 
     needs of small farms;
       (2) provide input to agencies and offices of the Department 
     on program and policy decisions to ensure that the interests 
     of small farms are represented; and
       (3) develop and implement a plan to coordinate the 
     effective delivery of services of the Department to small 
     farms.
       (d) Administrator.--
       (1) Appointment.--The Office of the Small Farms Advocate 
     shall be headed by an Administrator, who shall be appointed 
     by the President, with the advice and consent of the Senate. 
     Nothing in this Act shall be construed to authorize a net 
     increase in the number of political appointments within the 
     Department of Agriculture.
       (2) Duties.--The Administrator shall--
       (A) act as an advocate for small farms in connection with 
     policies and programs of the Department; and
       (B) carry out the functions of the Office of the Small 
     Farms Advocate under subsection (b).
       (3) Executive schedule.--Section 5315 of title 5, United 
     States Code, is amended by adding at the end the following:
       ``Administrator, Office of the Small Farms Advocate, 
     Department of Agriculture.''.
       (e) Resources.--Using funds that are otherwise available to 
     the Department of Agriculture, the Secretary shall provide 
     the Office of the Small Farms Advocate with such human and 
     capital resources as are sufficient for the Office to carry 
     out its functions in a timely and efficient manner.
       (f) Annual Report.--The Secretary shall annually submit to 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate an annual report that describes actions taken by 
     the Office of the Small Farms Advocate to further the 
     interests of small farms.
                                 ______
                                 

                       DORGAN AMENDMENT NO. 3184

  Mr. COCHRAN (for Mr. Dorgan) proposed an amendment to the bill, S. 
2159, supra; as follows:

       On page 67, after line 23, add the following:

     SEC. 7. LIMIT ON PENALTY FOR INADVERTENT VIOLATION OF 
                   CONTRACT UNDER THE AGRICULTURAL MARKET 
                   TRANSITION ACT.

       If an owner or producer, in good faith, inadvertently 
     plants edible beans during the 1998 crop year on acreage 
     covered by a contract under the Agricultural Market 
     Transition Act (7 U.S.C. 7201 et seq.), the Secretary of 
     Agriculture shall minimize penalties imposed for the planting 
     to prevent economic injury to the owner or producer.
                                 ______
                                 

                 CRAIG (AND OTHERS) AMENDMENT NO. 3185

  Mr. COCHRAN (for Mr. Craig for himself, Mr. Johnson, Mr. Grams, and 
Mr. Roberts) proposed an amendment to the bill, S.2159, supra; as 
follows:

       On page 67 after line 23 add the following section:

     SEC.   . 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Biodiesel 
     Energy Development Act of 1998''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Amendments to the Energy Policy and Conservation Act.
Sec. 4. Minimum Federal fleet requirement.
Sec. 5. State and local incentives programs.
Sec. 6. Alternative fuel bus program.
Sec. 7. Alternative fuel use in nonroad vehicles, engines, and marine 
              vessels.
Sec. 8. Mandate for alternative fuel providers.
Sec. 9. Replacement fuel supply and demand program.
Sec. 10. Modification of goals; additional rulemaking authority.
Sec. 11. Fleet requirement program.
Sec. 12. Credits.
Sec. 13. Secretary's recommendation to Congress.

     SEC. 2. DEFINITIONS.

       Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
     13211) is amended--
       (1) in paragraph (2), by striking ``derived from biological 
     materials'' and inserting ``derived from domestically 
     produced renewable biological materials (including biodiesel) 
     at mixtures not less than 20 percent by volume'';
       (2) in paragraph (8), by striking subparagraph (b) and 
     inserting the following:
       ``(B) a motor vehicle (other than an automobile) or marine 
     vessel that is capable of operating on alternative fuel, 
     gasoline, or diesel fuel, or an approved blend of alternative 
     fuel and petroleum-based fuel.'';
       (3) by redesignating paragraphs (11) through (14) as 
     paragraphs (12), (14), (15), and (16), respectively;
       (4) by inserting after paragraph (10) the following:
       ``(11) the term `heavy duty motor vehicle' means a motor 
     vehicle or marine vessel that is greater than 8,500 pounds 
     gross vehicle weight rating;'';
       (5) by inserting after paragraph (12) (as redesignated by 
     paragraph (3)) the following:
       ``(13) the term `marine vessel' means a motorized 
     watercraft or other artificial contrivance used as a means of 
     transportation primarily on the navigable waters of the 
     United States;'';
       (6) in paragraph (15) (as redesignated by paragraph (3)), 
     by striking ``biological materials (including biodiesel)''.

     SEC. 3. AMENDMENTS TO THE ENERGY POLICY AND CONSERVATION ACT.

       Section 400AA of the Energy Policy and Conservation Act (42 
     U.S.C. 6374) is amendment--
       (1) in the second sentence of subsection (a)(3)(B), by 
     striking ``vehicles converted to use alternative fuels may be 
     acquired if, after conversion,'' and inserting ``existing 
     fleet vehicles may be converted to use alternative fuels at 
     the time of a major vehicle overhaul or rebuild, or vehicles 
     that have been converted to use alternative fuels may be 
     acquired, if''; and
       (2) in subsection (g)--
       (A) in paragraph (2), by striking ``derived from biological 
     materials'' and inserting ``derived from domestically 
     produced renewable biological materials (including biodiesel) 
     at mixtures not less than 20 percent by volume'';
       (B) in paragraph (5), by striking subparagraph (B) and 
     inserting the following:
       ``(B) a motor vehicle (other than an automobile) or marine 
     vessel that is capable of operating on alternative fuel, 
     gasoline, or diesel fuel, or an approved blend of alternative 
     fuel and petroleum-based fuel; and''; and
       (C) in paragraph (6), by inserting ``or marine vessel'' 
     after ``a vehicle''.

     SEC. 4. MINIMUM FEDERAL FLEET REQUIREMENT.

       Section 303 of the Energy Policy Act of 1992 (42 U.S.C. 
     13212) is amended--
       (1) by redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Heavy Duty and Dual-fueled Vehicle Compliance 
     Credits.--
       ``(1) In general.--For purposes of meeting the requirements 
     of this section, the Secretary, in consultation with the 
     Administrator of General Services, if appropriate, shall 
     permit a Federal fleet to acquire 1 heavy duty alternative 
     fueled vehicle in place of 2 light duty alternative fueled 
     vehicles.
       ``(2) Additional credits.--For purposes of this section, 
     the Secretary, in consultation with the Administrator of 
     General Services, if appropriate, shall permit a Federal 
     fleet to take an additional credit for the purchase and 
     documented use of alternative fuel used in a dual-fueled 
     vehicle, comparable conventionally-fueled motor vehicle, or 
     marine vessel.
       ``(3) Accounting.--
       ``(A) In general.--In allowing a credit for the purchase of 
     a dual-fueled vehicle or alternative fuel, the Secretary may 
     request a Federal agency to provide an accounting of the 
     purchase.
       ``(B) Guidelines.--The Secretary shall include any request 
     made under subparagraph (A) in the guidelines required under 
     section 308.
       ``(4) Fuel and vehicle neutrality.--The Secretary shall 
     carry out this subsection in a manner that is, to the maximum 
     extent practicable, neutral with respect to the type of fuel 
     and vehicle used.''.

[[Page S8403]]

     SEC. 5. STATE AND LOCAL INCENTIVES PROGRAMS.

       (a) Establishment of Program.--Section 409(a) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13235(a)) is amended--
       (1) in paragraph (2)(A), by striking ``alternative fueled 
     vehicles'' and inserting ``light and heavy duty alternative 
     fueled vehicles and increasing the use of alternative 
     fuels''; and
       (2) in paragraph (3)--
       (A) in subparagraph (B), by inserting after ``introduction 
     of'' the following: ``converted or acquired light and heavy 
     duty'';
       (B) in subparagraph (E), by inserting after ``of sales of'' 
     the following: ``, incentives toward use of, and reporting 
     requirements relating to''; and
       (C) in subparagraph (G)--
       (i) by redesignating clauses (i) through (iii) as clauses 
     (ii) through (iv), respectively; and
       (ii) by inserting after ``cost of--'' the following:
       ``(I) alternative fuels;''.
       (b) Federal Assistance to States.--Section 409(b) of the 
     Energy Policy Act of 1992 (42 U.S.C. 13235(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) in subparagraph (C), by striking the period at the end 
     and inserting ''; and''; and
       (C) by adding at the end the following:
       ``(D) grants of Federal financial assistance for the 
     incremental purchase cost of alternative fuels.'';
       (2) in paragraph (2)(B), by inserting after ``be 
     introduced'' the following: ``and the volume of alternative 
     fuel likely to be consumed''; and
       (3) in paragraph (3)--
       (A) by inserting ``alternative fuels and'' after ``in 
     procuring''; and
       (B) by inserting ``fuels and'' after ``of such''.
       (c) General Provisions.--Section 409(c)(2)(A) of the Energy 
     Policy Act of 1992 (42 U.S.C. 13235(c)(2)(A)) is amended by 
     inserting after ``alternative fueled vehicles in use'' the 
     following: ``and volume of alternative fuel consumed''.

     SEC. 6. ALTERNATIVE FUEL BUS PROGRAM.

       Section 410(c) of the Energy Policy Act of 1992 (42 U.S.C. 
     13236(c)) is amended in the second sentence by striking ``and 
     the conversion of school buses to dedicated vehicles'' and 
     inserting ``the incremental cost of alternative fuels used in 
     flexible fueled school buses, and the conversion of school 
     buses to alternative fueled vehicles''.

     SEC. 7. ALTERNATIVE FUEL USE IN NONROAD VEHICLES, ENGINES, 
                   AND MARINE VESSELS.

       Section 412 of the Energy Policy Act of 1992 (42 U.S.C. 
     13238) is amended--
       (1) in this section heading, by striking ``and engines'' 
     and inserting ``, engines, and marine vessels'';
       (2) by striking ``vehicles and engines'' each place it 
     appears in subsection (a) and (b) and inserting ``vehicles, 
     engines, and marine vessels'';
       (3) in subsections (a)--
       (A) in the subsection heading, by striking ``Nonroad 
     Vehicles, and Engines'' and inserting ``In General'';
       (B) in paragraph (1)--
       (i) in the first sentence, by striking ``a study'' and 
     inserting ``studies''; and
       (ii) in the second sentence--
       (I) by striking ``study'' and inserting ``studies''; and
       (II) by striking ``2 years'' and insert ``2, 6, and 10 
     years'';
       (C) in paragraph (2)--
       (i) by striking ``study'' each place it appears and 
     inserting ``studies''; and
       (ii) in the second sentence, by inserting ``or marine 
     vessels'' after ``such vehicles''; and
       (D) in paragraph (3)--
       (i) by striking ``report'' and inserting ``reports''; and
       (ii) by striking ``may'' and inserting ``shall''; and
       (4) in subsection (b)--
       (A) in this subsection heading, by striking ``and Engines'' 
     and inserting ``, Engines, and Marine Vessels''; and
       (B) by striking ``rail transportation, vehicles used at 
     airports, vehicles or engines used for marine purposes, and 
     other vehicles or engines'' and inserting ``rail and waterway 
     transportation, vehicles used at airports and seaports, 
     vehicles or engines used for marine purposes, marine vessels, 
     and other vehicles, engines, or marine vessels''.

     SEC. 8. MANDATE FOR ALTERNATIVE FUEL PROVIDERS.

       Section 501 of the Energy Policy Act of 1992 (42 U.S.C. 
     13251) is amended--
       (1) in subsection (a)(1), by inserting ``or heavy'' after 
     ``new light'' and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) allow the conversion of an existing fleet vehicle 
     into a dual-fueled alternative fueled vehicle at the time of 
     a major overhaul or rebuild of the vehicle, if the original 
     equipment manufacturer's warranty continues to apply to the 
     vehicle, pursuant to an agreement between the original 
     equipment manufacturer and the person performing the 
     conversion.''.

     SEC. 9. REPLACEMENT FUEL SUPPLY AND DEMAND PROGRAM.

       Section 502 of the Energy Policy Act of 1992 (42 U.S.C. 
     13252) is amended--
       (1) in the first sentence of subsection (a), by inserting 
     ``and heavy'' after ``in light''; and
       (2) in the first sentence of subsection (b), by inserting 
     after ``October 1, 1993,'' the following: ``and every 5 years 
     thereafter through October 1, 2008,''.

     SEC. 10. MODIFICATION OF GOALS; ADDITIONAL RULEMAKING 
                   AUTHORITY.

       Section 504 of the Energy Policy Act of 1992 (42 U.S.C. 
     13254) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``and periodically thereafter'' and inserting ``consistent 
     with the reporting requirements of section 502(b)''; and
       (2) in subsection (c), by inserting after the first 
     sentence the following: ``Any additional regulation issued by 
     the Secretary shall be, to the maximum extent practicable, 
     neutral with respect to the type of fuel and vehicle used.''.

     SEC. 11. FLEET REQUIREMENT PROGRAM.

       (a) Fleet Program Purchase Goals.--Section 507(a)(1) of the 
     Energy Policy Act of 1992 (42 U.S.C. 13257(a)(1)) is amended 
     by inserting ``acquired as, or converted into,'' after 
     ``shall be''.
       (b) Fleet Requirement Program.--Section 507(g) of the 
     Energy Policy Act of 1992 (42 U.S.C. 13257(g)) is amended--
       (1) in paragraph (1), by inserting, ``acquired as, or 
     converted into,'' after ``shall be'';
       (2) by redesignating paragraph (4) as paragraph (5); and
       (3) by inserting after paragraph (3) the following:
       ``(4) Substitutions.--The Secretary shall, by rule, permit 
     fleets covered under this section to substitute the 
     acquisition or conversion of 1 heavy duty alternative fueled 
     vehicle for 2 light duty vehicle acquisitions to meet the 
     requirements of this subsection.''.
       (c) Conversions.--Section 507(j) of the Energy Policy Act 
     of 1992 (42 U.S.C. 13257(j)) is amended--
       (1) by striking ``Nothing in'' and inserting the following:
       ``(1) In general.--Subject to paragraph (2) nothing in''; 
     and
       (2) by adding at the end the following:
       ``(2) Conversion into alternative fueled vehicles.--
       ``(A) In general.--A fleet owner shall be permitted to 
     convert an existing fleet vehicle into an alternative fueled 
     vehicle, and purchase the alternative fuel for the converted 
     vehicle, for the purpose of compliance with this title or an 
     amendment made by this title, if the original equipment 
     manufacturer's warranty continues to apply to the vehicle, 
     pursuant to an agreement between the original equipment 
     manufacturer and the person performing the conversion.
       ``(B) Credits.--A fleet owner shall be allowed a credit for 
     the conversion of an existing fleet vehicle and the purchase 
     of alternative fuel for the vehicles.''.
       (d) Mandatory State Fleet Programs.--Section 507(o) of the 
     Energy Policy Act of 1992 (42 U.S.C. 13257(o)) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``or heavy'' after ``new light''; and
       (B) by inserting ``or converted'' after ``acquired''; and
       (2) in the first sentence of paragraph (2)(A)--
       (A) by striking ``this Act'' and inserting ``the Biodiesel 
     Energy Development Act of 1997''; and
       (B) by inserting after ``of light'' the following ``or 
     heavy duty alternative fueled''.

     SEC. 12. CREDITS.

       (a) In General.--Section 508(a) of the Energy Policy Act of 
     1992 (42 U.S.C. 13258(a)) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) Additional alternative fueled vehicles.--The 
     Secretary''; and
       (2) by adding at the end the following:
       ``(2) Alternative fuel.--The Secretary shall allocate a 
     credit to a fleet or covered person that acquires a volume of 
     alternative fuel equal to the estimated need for 1 year for 
     any dual-fueled vehicle acquired or converted by the fleet or 
     covered person as required under this title.''.
       (b) Allocation.--Section 508(b) of the Energy Policy Act of 
     1992 (42 U.S.C. 13258(b)) is amended--
       (1) by striking ``In allocating credits under subsection 
     (a),'' and inserting the following:
       ``(1) Additional alternative fueled vehicles.--In 
     allocating credits under subsection (a)(1),''; and
       (2) by adding at the end the following:
       ``(2) Duel-fueled vehicles; alternative fuel.--In 
     allocating credits under subsection (a)(2), the Secretary 
     shall allocate 2 credits to a fleet or covered person for 
     acquiring or converting a dual-fueled vehicle and acquiring a 
     volume of alternative fuel equal to the estimated need for 1 
     year for any dual-fueled vehicle if the dual-fueled vehicle 
     acquired is in excess of the number that the fleet or covered 
     person is required to acquire or is acquired before the date 
     that the fleet or covered person is required to acquire the 
     number under this title.''.

     SEC. 13. SECRETARY'S RECOMMENDATION TO CONGRESS.

       Section 509(a) of the Energy Policy Act of 1992 (42 U.S.C. 
     13259(a)) is amended--
       (1) in paragraph (1), by inserting before the semicolon at 
     the end the following: ``and exempting replacement fuels from 
     taxes levied on non-replacement fuels''; and
       (2) in paragraph (2)--
       (A) by inserting ``and converters'' after ``suppliers''; 
     and
       (B) by inserting before the semicolon the following: ``, 
     including the conversion and

[[Page S8404]]

     warranty of motor vehicles into alternative fueled 
     vehicles''.
                                 ______
                                 

                       BUMPERS AMENDMENT NO. 3186

  Mr. COCHRAN (for Mr. Bumpers) proposed an amendment to the bill, S. 
2159, supra; as follows:

       At the appropriate place insert the following:
       Sec.   . The Secretary of Agriculture shall present to 
     Congress by March 1, 1999, a report on whether to recommend 
     lifting the ban on the interstate-distribution of state 
     inspected meat.
                                 ______
                                 

                        HATCH AMENDMENT NO. 3187

  Mr. COCHRAN (for Mr. Hatch) proposed an amendment to the bill, S. 
2159, supra; as follows:

       At the appropriate place insert the following:
       The Secretary of Agriculture shall present to Congress a 
     report on whether to recommend by March 1, 1999, lifting the 
     ban on the interstate-distribution of state inspected meat.
                                 ______
                                 

           COVERDELL (AND CLELAND) AMENDMENTS NOS. 3188-3190

  Mr. COCHRAN (for Mr. Coverdell for himself and Mr. Cleland) proposed 
three amendments to the bill, S. 2159, supra; as follows:

                           Amendment No. 3188

       On page 67, after line 23, add the following:

     SEC. ____. PROHIBITION ON LOAN GUARANTEES TO BORROWERS THAT 
                   HAVE RECEIVED DEBT FORGIVENESS.

       Section 373 of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2008h) is amended by striking subsection (b) 
     and inserting the following:
       ``(b) Prohibition of Loans for Borrowers That Have Received 
     Debt Forgiveness.--
       ``(1) Prohibitions.--Except as provided in paragraph (2)--
       ``(A) the Secretary may not make a loan under this title to 
     a borrower that has received debt forgiveness on a loan made 
     or guaranteed under this title; and
       ``(B) the Secretary may not guarantee a loan under this 
     title to a borrower that has received--
       ``(i) debt forgiveness after April 4, 1996, on a loan made 
     or guaranteed under this title; or
       ``(ii) received debt forgiveness on no more than 3 
     occasions on or before April 4, 1996.
       ``(2) Exceptions.--
       ``(A) In general.--The Secretary may make a direct or 
     guaranteed farm operating loan for paying annual farm or 
     ranch operating expenses of a borrower that was restructured 
     with a write-down under section 353.
       ``(B) Emergency loans.--The Secretary may make an emergency 
     loan under section 321 to a borrower that--
       ``(i) on or before April 4, 1996, received not more than 1 
     debt forgiveness on a loan made or guaranteed under this 
     title; and
       ``(ii) after April 4, 1996, has not received debt 
     forgiveness on a loan made or guaranteed under this title.''.
                                  ____


                           Amendment No. 3189

       On page 67, after line 23, add the following:

     SEC. ____. DEFINITION OF FAMILY FARM.

       (a) Real Estate Loans.--Section 302 of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1922) is amended by 
     adding at the end the following:
       ``(c) Determination of Qualification for Loan.--
       ``(1) Primary factor.--The primary factor to be considered 
     in determining whether an applicant for a loan under this 
     subtitle is engaged primarily and directly in farming or 
     ranching shall be whether the applicant is participating in 
     routine, ongoing farm activities and in overall 
     decisionmaking with regard to the farm or ranch.
       ``(2) No basis for denial of loan.--The Secretary may not 
     deny a loan under this subtitle solely because 2 or more 
     individuals are employed full-time in the farming operation 
     for which the loan is sought.''.
       (b) Operating Loans.--Section 311 of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1941) is amended by 
     adding at the end the following:
       ``(d) Determination of Qualification for Loan.--
       ``(1) Primary factor.--The primary factor to be considered 
     in determining whether an applicant for a loan under this 
     subtitle is engaged primarily and directly in farming or 
     ranching shall be whether the applicant is participating in 
     routine, ongoing farm activities and in overall 
     decisionmaking with regard to the farm or ranch.
       ``(2) No basis for denial of loan.--The Secretary may not 
     deny a loan under this subtitle solely because 2 or more 
     individuals are employed full-time in the farming operation 
     for which the loan is sought.''.
       (c) Emergency Loans.--Section 321 of the Consolidated Farm 
     and Rural Development Act (7 U.S.C. 1961) is amended by 
     adding at the end the following:
       ``(e) Determination of Qualification for Loan.--
       ``(1) Primary factor.--The primary factor to be considered 
     in determining whether an applicant for a loan under this 
     subtitle is engaged primarily and directly in farming or 
     ranching shall be whether the applicant is participating in 
     routine, ongoing farm activities and in overall 
     decisionmaking with regard to the farm or ranch.
       ``(2) No basis for denial of loan.--The Secretary may not 
     deny a loan under this subtitle solely because 2 or more 
     individuals are employed full-time in the farming operation 
     for which the loan is sought.''.
       (d) Effective Date.--This amendment shall be considered to 
     have been in effect as of January 1, 1977.
                                  ____


                           Amendment No. 3190

       On page 67, after line 23, add the following:

     SEC. ____. APPLICABILITY OF DISASTER LOAN COLLATERAL 
                   REQUIREMENTS UNDER THE SMALL BUSINESS ACT.

       Section 324(d) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1964(d)) is amended--
       (1) by striking ``(d) All loans'' and inserting the 
     following:
       ``(d) Repayment.--
       ``(1) In general.-- All loans''; and
       (2) by adding at the end the following:
       ``(2) No basis for denial of loan.--
       ``(A) In general.--Subject to subparagraph (B), the 
     Secretary shall not deny a loan under this subtitle to a 
     borrower by reason of the fact that the borrower lacks a 
     particular amount of collateral for the loan if the Secretary 
     is reasonably certain that the borrower will be able to repay 
     the loan.
       ``(B) Refusal to pledge available collateral.--The 
     Secretary may deny or cancel a loan under this subtitle if a 
     borrower refuses to pledge available collateral on request by 
     the Secretary.''.
                                 ______
                                 

                       HARKIN AMENDMENT NO. 3191

  Mr. COCHRAN (for Mr. Harkin) proposed an amendment to the bill, S. 
2159, supra; as follows:

       On page 46, line 24, before the period, insert the 
     following: ``: Provided further, That none of the funds under 
     this heading shall be available unless the value of bonus 
     commodities provided under section 32 of the Act of August 
     24, 1935 (49 Stat. 774, chapter 641; 7 U.S.C. 612c), and 
     section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) 
     is included in meeting the minimum commodity assistance 
     requirement of section 6(g) of the National School Lunch Act 
     (42 U.S.C. 1755(g))''.
       On page 47, line 6, strike ``$3,924,000,000'' and insert 
     ``$3,948,000,000''.
                                 ______
                                 

                        DODD AMENDMENT NO. 3192

  Mr. COCHRAN (for Mr. Dodd) proposed an amendment to amendment No. 
3176 proposed by him to the bill, S. 2159, supra; as follows:

       In the amendment strike all after the first word and insert 
     the following:

       . NOTIFICATION OF RECALLS OF DRUGS AND DEVICES.

       (a) Drugs.--Section 505 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 355) is amended by adding at the end 
     the following:
       ``(o)(1) If the Secretary withdraws an application for a 
     drug under paragraph (1) or (2) of the first sentence of 
     subsection (e) and a class I recall for the drug results, the 
     Secretary shall take such action as the Secretary may 
     determine to be appropriate to ensure timely notification of 
     the recall to individuals that received the drug, including 
     using the assistance of health professionals that prescribed 
     or dispensed the drug to such individuals.
       ``(2) In this subsection:
       ``(A) The term `Class I' refers to the corresponding 
     designation given recalls in subpart A of part 7 of title 21, 
     Code of Federal Regulations, or a successor regulation.
       ``(B) The term `recall' means a recall, as defined in 
     subpart A of part 7 of title 21, Code of Federal Regulations, 
     or a successor regulation, of a drug.''.
       (b) Devices.--Section 518(e) of such Act (21 U.S.C. 
     360h(e)) is amended--
       (1) in the last sentence of paragraph (2), by inserting 
     ``or if the recall is a class I recall,'' after ``cannot be 
     identified''; and
       (2) by adding at the end the following:
       ``(4) In this subsection, the term `Class I' refers to the 
     corresponding designation given recalls in subpart A of part 
     7 of title 21, Code of Federal Regulations, or a successor 
     regulation.''.
       (c) Conforming Amendment.--Section 705(b) of such Act (21 
     U.S.C. 375(b)) is amended--
       (1) by striking ``or gross'' and inserting ``gross''; and
       (2) by striking the period and inserting ``, or a class I 
     recall of a drug or device as described in section 505(o)(1) 
     or 518(e)(2).''.
       This section shall take effect one day after date of this 
     bill's enactment.
                                 ______
                                 

                 HARKIN (AND OTHERS) AMENDMENT NO. 3193

  Mr. COCHRAN (for Mr. Harkin for himself, Mr. Reed, Mr. Lautenberg, 
Mr. Kennedy, Mrs. Murray, and Mr. Johnson) propoosed an amendment to 
the bill, S. 2159, supra; as follows:

       At the appropriate place, insert the following:

     SEC. ____. TEEN ANTI-TOBACCO ACTIVITIES.

       (a) Increase in Funds.--The amount described for salaries 
     and expenses of the Food and Drug Administration under title 
     VI shall be increased from $1,072,640,000 to $1,172,640,000.
       (b) User Fee.--The Secretary of Health and Human Services 
     (referred to in this section as the ``Secretary'') shall, not 
     later than

[[Page S8405]]

     60 days after the date of enactment of this Act, and annually 
     thereafter assess and collect from each manufacturer of 
     tobacco products a user fee for the conduct of teen anti-
     tobacco activities by the Food and Drug Administration.
       (c) Amount.--With respect to each year, the user fee 
     assessed to a manufacturer under subsection (b) shall be 
     equal to an amount that bears the same ratio to $150,000,000 
     as the tobacco product market share of the manufacturer bears 
     to the tobacco market share of all tobacco product 
     manufacturers for the year preceding the year in which the 
     determination is being made.
       (d) Deposits.--Amount collected under subsection (b) shall 
     be deposited into the general fund of the Treasury.
       (e) Appropriation.--There are authorized to be appropriated 
     in each fiscal year, and there are appropriated, an amount 
     equal to the amount deposited into the Treasury under 
     subsection (d) for that fiscal year, to be used by the Food 
     and Drug Administration to carry out teen anti-tobacco 
     activities under the Federal Food, Drug and Cosmetic Act.
       (f) No Requirement for Payment.--The Secretary shall not 
     require that a manufacturer pay a user fee under this section 
     for any tobacco product for any fiscal year if the Secretary 
     determines that the tobacco product involved as manufactured 
     by the manufacturer is used by less than 0.5 percent of the 
     total number of individuals determined to have used any 
     tobacco product as manufactured by all manufacturers for the 
     year involved.
       (g) Final Determination.--The determination of the 
     Secretary as to the amount and allocation of an assessment 
     under subsection (b) shall be final and the manufacturer 
     shall pay such assessment within 30 days of the date on which 
     the manufacturer is assessed. Such payment shall be retained 
     by the Secretary pending final judicial review.
       (h) Judicial Review.--The amount of any user fee paid under 
     subsection (b) shall be subject to judicial review by the 
     United States Court of Appeals for the District of Columbia 
     Circuit, based on the arbitrary and capricious standard of 
     section 706(2)(A) of title 5, United States Code. 
     Notwithstanding any other provision of law, no court shall 
     have the authority to stay any payment due to the Secretary 
     under subsection (b) pending judicial review.
                                 ______
                                 

                       BAUCUS AMENDMENT NO. 3194

  Mr. COCHRAN (for Mr. Baucus) proposed an amendment to the bill, S. 
2159, supra; as follows:

       On page 13, line 11, strike ``$50,500,000'' and insert 
     ``$51,400,000''.
       On page 14, line 17, strike ``$432,082,000'' and insert 
     ``$432,982,000''.

                          ____________________