[Congressional Record (Bound Edition), Volume 147 (2001), Part 3]
[Senate]
[Pages 4407-4411]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           TEXT OF AMENDMENTS

  SA 137. Mr. COCHRAN proposed an amendment to the bill S. 27, to amend 
the Federal Election Campaign Act of 1971 to provide bipartisan 
campaign reform; as follows:

       On page 38, after line 3, add the following:

               TITLE V--ADDITIONAL DISCLOSURE PROVISIONS

     SEC. 501. INTERNET ACCESS TO RECORDS.

       Section 304(a)(11)(B) of the Federal Election Campaign Act 
     of 1971 (2 U.S.C. 434(a)(11)(B)) is amended to read as 
     follows:
       ``(B) The Commission shall make a designation, statement, 
     report, or notification that is filed with the Commission 
     under this Act available for inspection by the public in the 
     offices of the Commission and accessible to the public on the 
     Internet not later than 48 hours (24 hours in the case of a 
     designation, statement, report, or notification filed 
     electronically) after receipt by the Commission.''.

     SEC. 502. MAINTENANCE OF WEBSITE OF ELECTION REPORTS.

       (a) In General.--The Federal Election Commission shall 
     maintain a central site on the Internet to make accessible to 
     the public all election-related reports.
       (b) Election-related report.--In this section, the term 
     ``election-related report'' means any report, designation, or 
     statement required to be filed under the Federal Election 
     Campaign Act of 1971.
       (c) Coordination With Other Agencies.--Any executive agency 
     receiving an election-related report shall cooperate and 
     coordinate with the Federal Election Commission to make such 
     report available for posting on the site of the Federal 
     Election Commission in a timely manner.
                                  ____

  SA 138. Mr. WYDEN (for himself, Ms. Collins, Mr. Bingaman, and Mr. 
Levin) proposed an amendment to the bill S. 27, to amend the Federal 
Election Campaign Act of 1971 to provide bipartisan campaign reform; as 
follows:

       On page 37, between lines 14 and 15, insert the following:

     SEC. __. LIMITATION ON AVAILABILITY OF LOWEST UNIT CHARGE FOR 
                   FEDERAL CANDIDATES ATTACKING OPPOSITION.

       (a) In General.--Section 315(b) of the Communications Act 
     of 1934 (47 U.S.C. 315(b)), as amended by this Act, is 
     amended by adding at the end the following:
       ``(3) Content of broadcasts.--
       ``(A) In general.--In the case of a candidate for Federal 
     office, such candidate shall not be entitled to receive the 
     rate under paragraph (1)(A) for the use of any broadcasting 
     station unless the candidate provides written certification 
     to the broadcast station that the candidate (and any 
     authorized committee of the candidate) shall not make any 
     direct reference to another

[[Page 4408]]

     candidate for the same office, in any broadcast using the 
     rights and conditions of access under this Act, unless such 
     reference meets the requirements of subparagraph (C) or (D).
       ``(B) Limitation on charges.--If a candidate for Federal 
     office (or any authorized committee of such candidate) makes 
     a reference described in subparagraph (A) in any broadcast 
     that does not meet the requirements of subparagraph (C) or 
     (D), such candidate shall not be entitled to receive the rate 
     under paragraph (1)(A) for such broadcast or any other 
     broadcast during any portion of the 45-day and 60-day periods 
     described in paragraph (1)(A), that occur on or after the 
     date of such broadcast, for election to such office.
       ``(C) Television broadcasts.--A candidate meets the 
     requirements of this subparagraph if, in the case of a 
     television broadcast, at the end of such broadcast there 
     appears simultaneously, for a period no less than 4 seconds--
       ``(i) a clearly identifiable photographic or similar image 
     of the candidate; and
       ``(ii) a clearly readable printed statement, identifying 
     the candidate and stating that the candidate has approved the 
     broadcast.
       ``(D) Radio broadcasts.--A candidate meets the requirements 
     of this subparagraph if, in the case of a radio broadcast, 
     the broadcast includes a personal audio statement by the 
     candidate that identifies the candidate, the office the 
     candidate is seeking, and indicates that the candidate has 
     approved the broadcast.
       ``(E) Certification.--Certifications under this section 
     shall be provided and certified as accurate by the candidate 
     (or any authorized committee of the candidate) at the time of 
     purchase.
       ``(F) Definitions.--For purposes of this paragraph, the 
     terms `authorized committee' and `Federal office' have the 
     meanings given such terms by section 301 of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 431).''.
       (b) Conforming Amendment.--Section 315(b)(1)(A) of the 
     Communications Act of 1934 (47 U.S.C. 315(b)(1)(A)), as 
     amended by this Act, is amended by inserting ``subject to 
     paragraph (3),'' before ``during the forty-five days''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to broadcasts made after the date of enactment of 
     this Act.
                                  ____

  SA 139. Mr. McCONNELL (for Mr. Nickles (for himself and Mr. Gregg)) 
proposed an amendment to the bill S. 27, to amend the Federal Election 
Campaign Act of 1971 to provide bipartisan campaign reform; as follows:

       Beginning on page 35, strike line 8 and all that follows 
     through page 37, line 14.

  Mr. WELLSTONE. Mr. President, I do not oppose this amendment, but, as 
several of my colleagues have noted, it is for reasons far different 
than the sponsors of this amendment have put forward.
  This amendment deletes Section 304 of the campaign finance reform 
bill. That section does two things. First, it affirms the obligation 
that Beck places on unions to afford non-members who pay fees under a 
union security clause the opportunity to object to paying for 
activities unrelated to collective bargaining, contract administration, 
or grievance adjustment. Second it clarifies the so-called ``objection 
procedures'' required. These are obligations placed on unions under 
current law. Keeping the provisions in the bill or taking them out will 
not change unions' lawful obligations to non-members.
  Indeed, my understanding is that provisions such as Section 304 have 
been inserted in campaign finance reform measures for quite some time 
largely because some of my colleagues wanted assurance that unions 
would obey the law. The fact is that Beck has been the law for almost 
13 years. Since Beck became law every union has created procedures to 
ensure the necessary opt-out procedures. This demonstrates to me that 
the provision is unnecessary--and has been for some time.
  I do, however, want to take issue with the Senator from Kentucky's 
statement to the effect that Section 304 as currently drafted 
``eviscerates'' Beck. The Beck Court did not reach the conclusions my 
colleague suggests. What the Court concluded was that unions were not 
permitted ``over the objections of dues-paying nonmember employees, to 
expend funds so collected on activities unrelated to collective 
bargaining, contract administration, or grievance adjustment . . .'' 
Hence it created the obligation on the part of the unions to offer 
opportunities to object and objection procedures that, as noted, are 
the subject of Section 304.
  In sum, since Beck is the current law, and Section 304 does not 
change that fact, I have no objections to removing it from the bill.
                                  ____

  SA 140. Mr. SPECTER proposed an amendment to the bill S. 27, to amend 
the Federal Election Campaign Act of 1971 to provide bipartisan 
campaign reform; as follows:

       On page 7, line 24, after ``and'', insert the following: 
     ``which, when read as a whole, in the context of external 
     events, is unmistakable, unambiguous and suggestive of no 
     plausible meaning other than an exhortation to vote for or 
     against a specific candidate.''
       On page 15, line 20, insert the following:
       ``(iv) promotes or supports a candidate for that office, or 
     attacks or opposes a candidate for that office (regardless of 
     whether the communication expressly advocates a vote for or 
     against a candidate) and which, when read as a whole, and in 
     the context of external events, is unmistakable, unambiguous 
     and suggestive of no plausible meaning other than an 
     exhortation to vote for or against a specific candidate.''
       On page 2, after the matter preceding line 1, insert:

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) In the twenty-five years since the 1976 Supreme Court 
     decision in Buckley v. Valeo, the number and frequency of 
     advertisements increased dramatically which clearly advocate 
     for or against a specific candidate for Federal office 
     without magic words such as ``vote for'' or ``vote against'' 
     as prescribed in the Buckley decision.
       (2) The absence of the magic words from the Buckley 
     decision has allowed these advertisements to be viewed as 
     issue advertisements, despite their clear advocacy for or 
     against the election of a specific candidate for Federal 
     office.
       (3) By avoiding the use of such terms as ``vote for'' and 
     ``vote against,'' special interest groups promote their views 
     and issue positions in reference to particular elected 
     officials without triggering the disclosure and source 
     restrictions of the Federal Election Campaign Act.
       (4) In 1996, an estimated $135 million was spent on such 
     issue advertisements; the estimate for 1998 ranged from $275-
     $340 million; and, for the 2000 election the estimate for 
     spending on such advertisements exceeded $340 million.
       (5) If left unchecked, the explosive growth in the number 
     and frequency of advertisements that are clearly intended to 
     influence the outcome of Federal elections yet are 
     masquerading as issue advocacy has the potential to undermine 
     the integrity of the electoral process.
       (6) The Supreme Court in Buckley reviewed the legislative 
     history and purpose of the Federal Election Campaign Act and 
     found that the authorized or requested standard of the 
     Federal Election Campaign Act operated to treat all 
     expenditures placed in cooperation with or with the consent 
     of a candidate, an agent of the candidate, or an authorized 
     committee of the candidate as contributions subject to the 
     limitations set forth in the Act.
       (7) During the 1996 Presidential primary campaign the 
     Clinton Committee and the Dole Committee both spent millions 
     of dollars in excess of the overall Presidential primary 
     spending limit that applied to each of their campaigns, and 
     in doing so, used millions of dollars in soft money 
     contributions that could not legally be used directly to 
     support a Presidential campaign.
       (8) The Clinton and Dole Committees made these campaign 
     expenditures through their respective national political 
     party committees, using these party committees as conduits to 
     run multi-million dollar television ad campaigns to support 
     their candidacies.
       (9) These television ad campaigns were in each case 
     prepared, directed, and controlled by the Clinton and Dole 
     campaigns.
       (10) Former Clinton adviser Dick Morris said in his book 
     about the 1996 elections that president Clinton worked over 
     every script, watched each advertisement, and decided which 
     advertisements would run where and when.
       (11) Then-President Clinton told supporters at a Democratic 
     National Committee luncheon on December 7, 1995, that, ``We 
     realized that we could run these ads through the Democratic 
     Party, which meant that we could raise money in $20,000 and 
     $50,000 blocks. So we didn't have to do it all in $1,000 and 
     run down what I can spend, which is limited by law so that is 
     what we've done.''
       (12) Among the advertisements coordinated between the 
     Clinton campaign and the Democratic National Committee, yet 
     paid for by the DNC as an issue ad, was one which contained 
     the following: [Announcer] ``60,000 felons and fugitives 
     tried to buy handguns that couldn't because President Clinton 
     passed the Brady bill--five day waits, background checks. But 
     Dole and Gingrich voted no. 100,000 new police--because 
     President Clinton delivered. Dole and Gingrich? Vote no, want 
     to repeal 'em. Strengthen school anti-drug programs. 
     President Clinton did it. Dole and Gingrich? No again. Their 
     old ways

[[Page 4409]]

     don't work. President Clinton's plan. The new way. Meeting 
     our challenges, protecting our values.''
       (13) Another advertisement coordinated between the Clinton 
     campaign and the DNC contained the following: [Announcer] 
     ``America's values. Head start. Student loans. Toxic cleanup. 
     Extra police. Protected in the budget agreement; the 
     President stood firm. Dole, Gringrich's latest plan includes 
     tax hikes on working families. Up to 18 million children face 
     health care cuts. Medicare slashed $167 billion. Then Dole 
     resigns, leaving behind gridlock he and Gringrich created. 
     The President's plan: Politics must wait. Balance the budget, 
     reform welfare, protect our values.''
       (14) Among the advertisements coordinated between the Dole 
     campaign and the Republican National Committee, yet paid for 
     by the RNC as an issue ad, was one which contained the 
     following:
       [Announcer] ``Bill Clinton, he's really something. He's now 
     trying to avoid a sexual harassment lawsuit claiming he is on 
     active military duty. Active duty? Newspapers report that Mr. 
     Clinton claims as commander-in-chief he is covered under the 
     Soldiers and Sailors Relief Act of 1940, which grants 
     automatic delays in lawsuits against military personnel until 
     their active duty is over. Active duty? Bill Clinton, he's 
     really something.''
       (15) Another advertisement coordinated between the Dole 
     campaign and the RNC contained the following:
       [Announcer] ``Three years ago, Bill Clinton gave us the 
     largest tax increase in history, including a 4 cent a gallon 
     increase on gasoline. Bill Clinton said he felt bad about 
     it.''
       [Clinton] ``People in this room still get mad at me over 
     the budget process because you think I raised your taxes too 
     much. It might surprise you to know I think I raised them too 
     much, too.''
       [Announcer] ``OK, Mr. President, we are surprised. So now, 
     surprise us again. Support Senator Dole's plan to repeal your 
     gas tax. And learn that actions do speak louder than words.''
       (16) Clinton and Dole Committee agents raised the money 
     used to pay for these so-called issue ads supporting their 
     respective candidacies.
       (17) These television advertising campaigns, run in the 
     guise of being DNC and RNC issue ad campaigns, were in fact 
     Clinton and Dole ad campaigns, and accordingly should have 
     been subject to the contribution and spending limits that 
     apply to Presidential campaigns.
       (18) After reviewing spending in the 1996 Presidential 
     election campaign, auditors for the Federal Election 
     Commission recommended that the 1996 Clinton and Dole 
     campaigns repay $7 million and $17.7 million, respectively, 
     because the national political parties had closely 
     coordinated their soft money issue ads with the respective 
     presidential candidates and accordingly, the expenditures 
     would be counted against the candidates' spending limits. The 
     repayment recommendation for the Dole campaign was 
     subsequently reduced to $6.1 million.
       (19) On December 10, 1998, in a 6-0 vote, the Federal 
     Election Commission rejected its auditors' recommendation 
     that the Clinton and Dole campaigns repay the money.
       (20) The pattern of close coordination between candidates' 
     campaign committees and national party committees continued 
     in the 2000 Presidential election.
       (21) An advertisement financed by the RNC contained the 
     following:
       [Announcer] ``Whose economic plan is best for you? Under 
     George Bush's plan, a family earnings under $35,000 a year 
     pays no Federal income taxes--a 100 percent tax cut. Earn 
     $35,000 to $50,000? A 55 percent ax cut. Tax relief for 
     everyone. And Al Gore's plan: three times the new spending 
     President Clinton proposed, so much it wipes out the entire 
     surplus and creates a deficit again. Al Gore's deficit 
     spending plan threatens America's prosperity.''
       (22) Another advertisement financed by the NRC contained 
     the following:
       [Announcer] ``Under Clinton-Gore, prescription drug prices 
     have skyrocketed, and nothing's been done. George Bush has a 
     plan: add a prescription drug benefit to Medicare.''
       [George Bush] ``Every senior will have access to 
     prescription drug benefits.''
       [Announcer] ``And Al Gore? Gore opposed bipartisan reform. 
     He's pushing a big government plan that lets Washington 
     bureaucrats interfere with what your doctors prescribe. The 
     Gore prescription plan: bureaucrats decide. Bush prescription 
     plan: seniors choose.''
       (23) An advertisement paid for by the DNC contained the 
     following:
       [Announcer] ``When the national minimum wage was raised to 
     $5.15 an hour, Bush did nothing and kept the Texas minimum 
     wage at $3.35. Six times the legislature tried to raise the 
     minimum wage and Bush's inaction helped kill it. Now Bush 
     says he'd allow states to set a minimum wage lower than the 
     Federal standard. Al Gore's plan: Make sure our current 
     prosperity enriches not just a few, but all families. 
     Increase the minimum wage, invest in education, middle-class 
     tax cuts and a secure retirement.''
       (24) Another advertisement paid for by the DNC contained 
     the following:
       [Announcer] ``George W. Bush chose Dick Cheney to help lead 
     the Republican party. What does Cheney's record say about 
     their plans? Cheney was one of only eight members of Congress 
     to oppose the Clean Water Act . . . one of the few to vote 
     against Head Start.
       He even voted against the School Lunch Program . . . 
     against health insurance for people who lost their jobs. 
     Cheney, an oil company CEO, said it was good for OPEC to cut 
     production so oil and gasoline prices could rise. What are 
     their plans for working families?''
       (25) On January 21, 2000, the Supreme Court in Nixon v. 
     Shrink Missouri Government PAC noted, ``In speaking of 
     `improper influence' and `opportunities for abuse' in 
     addition to `quid pro quo arrangements,' we recognized a 
     concern to the broader threat from politicians too compliant 
     with the wishes of large contributors.''
       (26) The details of corruption and the public perception of 
     the appearance of corruption have been documented in a flood 
     of books, including:
       (A) Backroom Politics: How Your Local Politicians Work, Why 
     Your Government Doesn't, and What You Can Do About It, by 
     Bill and Nancy Boyarsky (1974);
       (B) The Pressure Boys: The Inside Story of Lobbying in 
     America, by Kenneth Crawford (1974);
       (C) The American Way of Graft: A Study of Corruption in 
     State and Local Government, How it Happens and What Can Be 
     Done About it, by George Amick (1976);
       (D) Politics and Money: The New road to Corruption, by 
     Elizabeth Drew (1983);
       (E) The Threat From Within: Unethical Politics and 
     Politicians, by Michael Kroenwetter (1986);
       (F) The Best Congress Money Can Buy, by Philip M. Stern 
     (1988);
       (G) Combating Fraud and Corruption in the Public Sector, by 
     Peter Jones (1993);
       (H) The Decline and Fall of the American Empire: 
     Corruption, Decadence, and the American Dream, by Tony Bouza 
     (1996);
       (I) The Pursuit of Absolute Integrity: How Corruption 
     Control Makes Government Ineffective, by Frank Anechiarico 
     and James B. Jacobs (1996);
       (J) The Political Racket: Deceit, Self-Interest, and 
     Corruption in American Politics, by Martin L. Gross (1996).
       (K) Below the Beltway: Money, Power, and Sex in Bill 
     Clinton's Washington, by John L. Jackley (1996);
       (L) End Legalized Bribery: An Ex-Congressman's Proposal to 
     Clean Up Congress, by Cecil Heftel (1998);
       (M) Year of the Rat: How Bill Clinton Compromised U.S. 
     Security for Chinese Cash, by Edward Timperlake and William 
     C. Triplett, II (1998);
       (N) The Corruption of American Politics: What Went Wrong 
     and Why, by Elizabeth Drew (1999);
       (O) Corruption, Public Finances, and the Unofficial 
     Economy, by Simon Johnson, Daniel Kaufmann, and Pablo Zoido-
     Lobatoon (1999); and
       (P) Party Finance and Political Corruption, edited by 
     Robert Williams (2000);
       (27) The Washington Post reported on September 15, 2000 
     that a group of Texas trial lawyers with whom former Vice 
     President Gore met in 1995, contributed thousands of dollars 
     to the Democrats after President Clinton vetoed legislation 
     that would have strictly limited the amount of damages juries 
     can award to plaintiffs in civil lawsuits.
       (28) According to an article in the March 26, 2001 edition 
     of U.S. News and World Report, labor-related groups--which 
     count on their Democratic allies for support on issues such 
     as the minimum wage that are important to unions--spent more 
     than $83.5 million in the 2000 elections, with 94 percent 
     going to Democrats, prompting some labor figures to brag that 
     without labor's money, the election would not have been 
     nearly as close.
       (29) A New York Times editorial from March 16, 2001, 
     observed that ``Business interests generously supported 
     Republicans in the last election and are now reaping the 
     rewards. President Bush and Republican Congressional leaders 
     have moved to rescind new Labor Department ergonomics rules 
     aimed at fostering a safer workplace, largely because 
     business considered them too costly. Congress is also 
     revising bankruptcy law in a way long sought by major 
     financial institutions that gave Republicans $26 million in 
     the last election cycle.''
       (30) A New York Times article, from March 13, 2001, noted 
     that ``A lobbying campaign led by credit card companies and 
     banks that gave millions of dollars in political donations to 
     members of Congress and contributed generously to President 
     Bush's 2000 campaign is close to its long-sought goal of 
     overhauling the nation's bankruptcy system.''
       (31) According to a Washington Post article from March 11, 
     2001, when congressional GOP leaders took control of the 
     final writing of the bankruptcy bill, they consulted closely 
     with representatives of the American Financial Services 
     Association and the Coalition for Responsible Bankruptcy, 
     which represented dozens of corporations and trade groups. 
     The 442-page bill contained hundreds of provisions written or 
     backed by lobbyists for financial industry giants.

[[Page 4410]]

       (32) It has become common practice to reward big campaign 
     donors with ambassadorships, with an informal policy dating 
     back to the 1960s allocating about 30 percent of the nation's 
     ambassadorships to non-career appointees. According to a 
     Knight Rider article from November 13, 1997, former President 
     Nixon once told his White House Chief of Staff that ``Anybody 
     who wants to be an ambassador must at leave give $250,000.''
                                  ____

  SA 141. Mr. HELMS proposed an amendment to the bill S. 27, to amend 
the Federal Election Campaign Act of 1971 to provide bipartisan 
campaign reform; as follows:

       At the appropriate place, insert the following:

     SEC. __. DISCLOSURE OF EXPENDITURES BY LABOR ORGANIZATIONS.

       Section 8 of the National Labor Relations Act (29 U.S.C. 
     158), is amended by adding at the end the following:
       ``(i) Notice to Members and Employees.--A labor 
     organization shall, on an annual basis, provide (by mail) to 
     each employee who, during the year involved, pays dues, 
     initiation fees, assessments, or other payments as a 
     condition of membership in the labor organization or as a 
     condition of employment (as provided for in subsection 
     (a)(3)), a notice that includes the following statement: `You 
     have the right to withhold the portion of your dues that is 
     used for purposes unrelated to collective bargaining. The 
     United States Supreme Court has ruled that labor 
     organizations cannot force dues-paying or fees-paying non-
     members to pay for activities that are unrelated to 
     collective bargaining. You have the right to resign from the 
     labor organization and, after such resignation, to pay 
     reduced dues or fees in accordance with the decision of the 
     Supreme Court.'  ''.
                                  ____

  SA 142. Mr. GRAMM proposed an amendment to the bill S. 143, to amend 
the Securities Act of 1933 and the Securities Exchange Act of 1934, to 
reduce securities fees in excess of those required to fund the 
operations of the Securities and Exchange Commission, to adjust 
compensation provisions for employees of the Commission, and for other 
purposes; as follows:

       Insert the following new section 8 at the end of the bill:

     ``SEC. 8. STUDY OF THE EFFECT OF FEE REDUCTIONS.

       ``(a) Study.--The Office of Economic Analysis of the 
     Securities and Exchange Commission (hereinafter referred to 
     as the ``Office'') shall conduct a study of the extent to 
     which the benefits of reductions in fees effected as a result 
     of this Act are passed on to investors.
       ``(b) Factors for Consideration.--In conducting the study 
     under subsection (a), the Office shall--
       ``(1) consider all of the various elements of the 
     securities industry directly and indirectly benefiting from 
     the fee reductions, including purchasers and sellers of 
     securities, members of national securities exchanges, 
     issuers, broker-dealers, underwriters, participants in 
     investment companies, retirement programs, and others;
       ``(2) evaluate the impact on different types of investors, 
     such as individual equity holders, individual investment 
     company shareholders, businesses, and other types of 
     investors;
       ``(3) include in the interpretation of the term 
     ``investor'' shareholders of entities subject to the fee 
     reductions; and
       ``(4) consider the economic benefits to investors flowing 
     from the fee reductions to include such factors as market 
     efficiency, expansion of investment opportunities, and 
     enhanced liquidity and capital formation.
       ``(c) Report to Congress.--Not later than 2 years after the 
     date of enactment of this Act, the Securities and Exchange 
     Commission shall submit to the Congress the report prepared 
     by the Office on the results of the study conducted under 
     subsection (a).''
                                  ____

  SA 143. Mr. GRAMM (for himself, Mr. Thompson, Mr. Cochran, Mr. 
Voinovich, and Mr. Schumer) proposed an amendment to the bill S. 143, 
to amend the Securities Act of 1933 and the Securities Exchange Act of 
1934, to reduce securities fees in excess of those required to fund the 
operations of the Securities and Exchange Commission, to adjust 
compensation provisions for employees of the Commission, and for other 
purposes; as follows:

       On page 41, line 8, strike all through page 44, line 16, 
     and insert the following:

     SEC. 6. COMPARABILITY PROVISIONS.

       (a) Commission Demonstration Project.--Subpart C of part 
     III of title 5, United States Code, is amended by adding at 
     the end the following:

          ``CHAPTER 48--AGENCY PERSONNEL DEMONSTRATION PROJECT

``Sec.
``4801. Nonapplicability of chapter 47.
``4802. Securities and Exchange Commission.

     ``Sec. 4801. Nonapplicability of chapter 47.

       ``Chapter 47 shall not apply to this chapter.

     ``Sec. 4802. Securities and Exchange Commission

       ``(a) In this section, the term `Commission' means the 
     Securities and Exchange Commission.
       ``(b) The Commission may appoint and fix the compensation 
     of such officers, attorneys, economists, examiners, and other 
     employees as may be necessary for carrying out its functions 
     under the securities laws as defined under section 3 of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78c).
       ``(c) Rates of basic pay for all employees of the 
     Commission may be set and adjusted by the Commission without 
     regard to the provisions of chapter 51 or subchapter III of 
     chapter 53.
       ``(d) The Commission may provide additional compensation 
     and benefits to employees of the Commission if the same type 
     of compensation or benefits are then being provided by any 
     agency referred to under section 1206 of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989 
     (12 U.S.C. 1833b) or, if not then being provided, could be 
     provided by such an agency under applicable provisions of 
     law, rule, or regulation. In setting and adjusting the total 
     amount of compensation and benefits for employees, the 
     Commission shall consult with, and seek to maintain 
     comparability with, the agencies referred to under section 
     1206 of the Financial Institutions Reform, Recovery, and 
     Enforcement Act of 1989 (12 U.S.C. 1833b).
       ``(e) The Commission shall consult with the Office of 
     Personnel Management in the implementation of this section.
       ``(f) This section shall be administered consistent with 
     merit system principles.''.
       (b) Employees Represented by Labor Organizations.--To the 
     extent that any employee of the Securities and Exchange 
     Commission is represented by a labor organization with 
     exclusive recognition in accordance with chapter 71 of title 
     5, United States Code, no reduction in base pay of such 
     employee shall be made by reason of enactment of this section 
     (including the amendments made by this section).
       (c) Implementation Plan and Report.--
       (1) Implementation plan.--
       (A) In general.--The Securities and Exchange Commission 
     shall develop a plan to implement section 4802 of title 5, 
     United States Code, as added by this section.
       (B) Inclusion in annual performance plan and report.--The 
     Securities and Exchange Commission shall include--
       (i) the plan developed under this paragraph in the annual 
     program performance plan submitted under section 1115 of 
     title 31, United States Code; and
       (ii) the effects of implementing the plan developed under 
     this paragraph in the annual program performance report 
     submitted under section 1116 of title 31, United States Code.
       (2) Implementation report.--
       (A) In general.--Before implementing the plan developed 
     under paragraph (1), the Securities and Exchange Commission 
     shall submit a report to the Committee on Governmental 
     Affairs and the Committee on Banking, Housing, and Urban 
     Affairs of the Senate, the Committee on Government Reform and 
     the Committee on Financial Services of the House of 
     Representatives, and the Office of Personnel Management on 
     the details of the plan.
       (B) Content.--The report under this paragraph shall 
     include--
       (i) evidence and supporting documentation justifying the 
     plan; and
       (ii) budgeting projections on costs and benefits resulting 
     from the plan.
       (d) Technical and Conforming Amendments.--
       (1) Amendments to title 5, united states code.--
       (A) The table of chapters for part III of title 5, United 
     States Code, is amended by adding at the end of subpart C the 
     following:

``48. Agency Personnel Demonstration Project...................4801.''.

       (B) Section 3132(a)(1) of title 5, United States Code, is 
     amended--
       (i) in subparagraph (C), by striking ``or'' after the 
     semicolon;
       (ii) in subparagraph (D), by inserting ``or'' after the 
     semicolon; and
       (iii) by adding at the end the following:
       ``(E) the Securities and Exchange Commission;''.
       (C) Section 5373(a) of title 5, United States Code, is 
     amended--
       (i) in paragraph (2), by striking ``or'' after the 
     semicolon;
       (ii) in paragraph (3), by striking the period and inserting 
     ``; or''; and
       (iii) by adding at the end the following:
       ``(4) section 4802.''.
       (2) Amendment to securities and exchange act of 1934.--
     Section 4(b) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78d(b)) is amended by striking paragraphs (1) and (2) 
     and inserting the following:
       ``(1) Appointment and compensation.--The Commission shall 
     appoint and compensate officers, attorneys, economists, 
     examiners, and other employees in accordance with section 
     4802 of title 5, United States Code.
       ``(2) Reporting of information.--In establishing and 
     adjusting schedules of compensation and benefits for 
     officers, attorneys, economists, examiners, and other 
     employees

[[Page 4411]]

     of the Commission under applicable provisions of law, the 
     Commission shall inform the heads of the agencies referred to 
     under section 1206 of the Financial Institutions Reform, 
     Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b) and 
     Congress of such compensation and benefits and shall seek to 
     maintain comparability with such agencies regarding 
     compensation and benefits.''.
       (3) Amendment to firrea of 1989.--Section 1206 of the 
     Financial Institutions Reform, Recovery, and Enforcement Act 
     of 1989 (12 U.S.C. 1833b) is amended by striking ``the Thrift 
     Depositor Protection Oversight Board of the Resolution Trust 
     Corporation''.

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