[Congressional Record (Bound Edition), Volume 155 (2009), Part 8]
[Senate]
[Pages 11040-11047]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Ms. MURKOWSKI:
  S. 922. A bill to amend the Internal Revenue Code of 1986 to modify 
the term ``5-year property''; to the Committee on Finance.
  Ms. MURKOWSKI. Mr. President, I rise today to introduce two pieces of 
legislation S. 922 and S. 923, that I hope will be the next major step 
that this Congress takes to help an exciting form of renewable energy 
to become more established as a viable energy technology. I am 
referring to helping the expansion of the ocean hydrokinetic energy 
industry.
  Today I am introducing the Marine Renewable Energy Promotion Act of 
2009 and a companion tax provision. They are companion measures to one 
that has been introduced in the House of Representatives by Rep. Jay 
Inslee of Washington.
  For a number of years this Nation has been providing help with 
research and other assistance to promote the development of energy from 
our oceans and rivers, using the tides, currents, waves and even the 
thermal properties of our oceans to generate electricity. With 70 
percent of our planet covered with water, and the energy that the sun 
produces--each day oceans absorb the energy equivalent of 250 billion 
barrels of oil--and the energy that winds produce and impart to that 
water, marine hydrokinetic energy has the potential to be a major 
source of the world's clean, non-carbon emitting power in the future.
  The Electric Power Research Institute has estimated that ocean 
resources in the U.S. could generate 252 million megawatt hours of 
electricity--6.5 percent of America's entire electricity generation--if 
ocean energy gained the same financial and research incentives 
currently enjoyed by other forms of renewable energy.
  In 2005 in the Energy Policy Act we started the process of leveling 
the playing field. Besides authorizing a greater Federal research 
preference, we granted ocean energy the federal purchase requirement 
and the federal production incentive. In 2007's Energy Independence and 
Security Act, we furthered energy research and authorized the funding 
of research and ocean energy demonstration centers. In 2008, ocean 
energy finally was qualified to receive a renewable energy Production 
Tax Credit--unfortunately at a lower rate than some other renewables 
receive. But the PTC establishes the principle that ocean energy is a 
valuable future technology to meet electricity generation needs.
  Now we are proposing that additional Federal aid be granted to all 
potential forms of Marine Renewable Energy to allow the industry's 
growth to advance more rapidly. The bill authorizes the Department of 
Energy to increase its research and development effort, working to 
develop new technologies, reduce manufacturing and operating costs of 
the devices, improve the reliability and survivability of marine energy 
facilities and make sure that such power can be integrated into the 
national electricity grid. The bill also encourages efforts to allow 
marine energy to work in conjunction with other forms of energy, such 
as offshore wind, and authorizes more federal aid to assess and deal 
with any environmental impacts. The bill also authorizes establishment 
of project standards and provides for incentives to help the industry 
comply with any standards developed.
  Allows for the creation of a Federal Marine-Based Energy Device 
Verification program, so the Government tests and certifies the 
performance of new marine technologies to reduce market risks for 
utilities to purchase power from such projects.
  Authorizes the Federal Government to set up an adaptive management 
program, and a fund to help pay for the regulatory permitting and 
development of new marine technologies.
  A separate bill, likely to be referred to the Senate Finance 
Committee for consideration, authorizes that marine projects benefit 
from being able to accelerate the depreciation of their project costs 
over five years--like some other renewable energy technologies 
currently can do. That should enhance project economic returns for 
private developers.
  The legislation in total authorizes up to $250 million a year of 
Federal funding for research. It is in keeping with the goals of the 
Obama administration to markedly increase funding for prospective 
renewable energy technologies that can help reduce U.S. and global 
carbon emissions and reduce our dependence on fossil fuels for energy 
production.
  The technology this bill could foster could be of immense benefit to 
coastal regions and the U.S. power grid overall. In my home State of 
Alaska, for example, there are nearly 150 communities located along the 
State's 34,000 miles of coastline plus dozens more on the major river 
systems, which may benefit from the economies that gaining power from 
the free fuels of nature's currents and waves provides. In a State 
where rural electricity is currently averaging 65 cents per kilowatt 
hour when generated from diesel fuels--ocean energy offers the 
potential to sharply reduce all costs and vastly improve the local 
economy and thus the economy of the entire Nation.
  There are a number of difficult challenges ahead to realize the 
potential of marine renewable energy from building reliable devices at 
economical costs. But these bills are another step toward getting on 
with the task of identifying and meeting those challenges. The 
potential is well worth the cost.
  I hope this body will quickly include these provisions in 
comprehensive energy legislation and help this new industry to advance 
for the benefit of all Americans.
                                 ______
                                 
      By Mr. CORNYN (for himself, Mr. Voinovich, Mr. Ensign, Mrs. 
        Hutchison, and Mr. Chambliss):
  S. 926. A bill to provide for the continuing review of unauthorized 
Federal programs and agencies and to establish a bipartisan commission 
for the purpose of improving oversight and eliminating Government 
spending; to the Committee on Homeland Security and Governmental 
Affairs.
  Mr. CORNYN. Mr. President, I rise to introduce the United States 
Authorization and Sunset Commission Act of 2009. I am very pleased to 
be joined by my colleagues and good friends, Senators Voinovich, 
Chambliss, Ensign and Hutchison, who share my commitment that every 
dime sent by taxpayers to Washington, DC is spent wisely.
  The President has said several times that he intends to go through 
the Federal budget line-by-line--ending programs that we do not need 
and making the ones we do need work better and cost less. It is in this 
same spirit that I introduce this legislation.
  The United States Authorization and Sunset Commission Act of 2009 
creates an 8 member bipartisan Commission, made up of 4 Senators and 4 
Representatives. The Commission will look at the effectiveness and 
efficiency of all federal programs, but will especially focus on 
unauthorized and ineffective programs. The bill is modeled after the 
sunset process that the State of Texas instituted in 1977 to identify 
and eliminate waste, duplication, and inefficiency in government 
agencies. This process has led to the elimination of dozens of agencies 
that have outlived their usefulness and has saved Texas taxpayers 
hundreds of millions of dollars.
  The job of the Commission is to ask the fundamental question: ``Is an 
agency or program still needed?''
  The Commission has two major responsibilities. First, the Commission 
must submit a legislative proposal to Congress at least once every 10 
years that includes a review schedule of at least 25 percent of 
unauthorized Federal programs and at least 25 percent of ineffective 
federal programs or where effectiveness cannot be shown by the Office 
of Management and Budget's, OMB, Performance Assessment Rating Tool, 
PART. The Commission's schedule will abolish each program if Congress 
fails to either reauthorize the program or consider the Commission's 
recommendations within 2 years.
  Second, the Commission must conduct a review of each program 
identified in its review schedule and send its

[[Page 11041]]

recommendations for Congressional review. Congress will then have 2 
years to consider and pass the Commission's recommendations or to 
reauthorize the program before it is abolished.
  Congress has two bites of the apple when it comes to evaluating 
federal spending. First, when it authorizes a program and second when 
it appropriates the money for it. Yet, the Congressional Budget Office, 
CBO, annually finds that Congress spends billions of taxpayers' money 
on agencies and programs despite the fact that their authorization had 
expired. Many of these expired programs and agencies--perhaps most--
deserve reauthorization. Nonetheless, Congress should aggressively 
determine whether these programs and agencies are working as intended 
and the Commission will help serve this purpose.
  In addition, the Commission will use OMB's PART, which is a tool to 
assess and improve program performance. PART looks at all factors that 
affect and reflect program performance including program purpose and 
design, performance measurement, evaluations and strategic planning, 
program management, and program results. Using PART, OMB has scored 
over 1,000 government programs and found that 20 percent were not 
performing--they were found to be ineffective or their effectiveness 
could not be determined.
  The Commission's work will be guided by 10 criteria, including the 
program's effectiveness and efficiency, achievement of performance 
goals, and whether the program has fulfilled its legislative intent.
  Unfortunately Congress has a tendency to create commissions and then 
ignore their work and continue on with business as usual. This bill 
solves this problem. It requires Congress to consider, debate, and vote 
on the Commission's report under expedited procedures.
  The United States Authorization and Sunset Commission Act of 2009 is 
an important step to getting our fiscal house in order and to making 
sure that Congress gets back to the hard work of oversight to determine 
if programs actually fulfill their stated purpose or yield some 
unintended or counterproductive results. Periodic assessments are 
essential to good Government and this is what the Commission will 
provide to Congress and to taxpayers across the country. For this 
reason, I ask that my colleagues join me in cosponsoring the United 
States Authorization and Sunset Commission Act of 2009.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 926

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``United States Authorization 
     and Sunset Commission Act of 2009''.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the term ``agency'' means an Executive agency as 
     defined under section 105 of title 5, United States Code;
       (2) the term ``Commission'' means the United States 
     Authorization and Sunset Commission established under section 
     3; and
       (3) the term ``Commission Schedule and Review bill'' means 
     the proposed legislation submitted to Congress under section 
     4(b).

     SEC. 3. ESTABLISHMENT OF COMMISSION.

       (a) Establishment.--There is established the United States 
     Authorization and Sunset Commission.
       (b) Composition.--The Commission shall be composed of eight 
     members (in this Act referred to as the ``members''), as 
     follows:
       (1) Four members appointed by the majority leader of the 
     Senate, one of whom may include the majority leader of the 
     Senate, with minority members appointed with the consent of 
     the minority leader of the Senate.
       (2) Four members appointed by the Speaker of the House of 
     Representatives, one of whom may include the Speaker of the 
     House of Representatives, with minority members appointed 
     with the consent of the minority leader of the House of 
     Representatives.
       (3) The Director of the Congressional Budget Office and the 
     Comptroller of the Government Accountability Office shall be 
     non-voting ex officio members of the Commission.
       (c) Qualifications of Members.--
       (1) In general.--
       (A) Senate members.--Of the members appointed under 
     subsection (b)(1), four shall be members of the Senate (not 
     more than two of whom may be of the same political party).
       (B) House of representative members.--Of the members 
     appointed under subsection (b)(2), four shall be members of 
     the House of Representatives, not more than two of whom may 
     be of the same political party.
       (2) Continuation of membership.--
       (A) In general.--If a member was appointed to the 
     Commission as a Member of Congress and the member ceases to 
     be a Member of Congress, that member shall cease to be a 
     member of the Commission.
       (B) Actions of commission unaffected.--Any action of the 
     Commission shall not be affected as a result of a member 
     becoming ineligible under subparagraph (A).
       (d) Initial Appointments.--Not later than 90 days after the 
     date of enactment of this Act, all initial appointments to 
     the Commission shall be made.
       (e) Chairperson; Vice Chairperson.--
       (1) Initial chairperson.--An individual shall be designated 
     by the Speaker of the House of Representatives from among the 
     members initially appointed under subsection (b)(2) to serve 
     as chairperson of the Commission for a period of 2 years.
       (2) Initial vice chairperson.--An individual shall be 
     designated by the majority leader of the Senate from among 
     the individuals initially appointed under subsection (b)(1) 
     to serve as vice-chairperson of the Commission for a period 
     of 2 years.
       (3) Alternate appointments of chairmen and vice chairmen.--
     Following the termination of the 2-year period described 
     under paragraphs (1) and (2), the Speaker and the majority 
     leader of the Senate shall alternate every 2 years in 
     appointing the chairperson and vice-chairperson of the 
     Commission.
       (f) Terms of Members.--
       (1) Members of congress.--Each member appointed to the 
     Commission shall serve for a term of 6 years, except that, of 
     the members first appointed under paragraphs (1) and (2) of 
     subsection (b), two members shall be appointed to serve a 
     term of 3 years.
       (2) Term limit.--A member of the Commission who serves more 
     than 3 years of a term may not be appointed to another term 
     as a member.
       (g) Initial Meeting.--If, after 90 days after the date of 
     enactment of this Act, five or more members of the Commission 
     have been appointed--
       (1) members who have been appointed may--
       (A) meet; and
       (B) select a chairperson from among the members (if a 
     chairperson has not been appointed) who may serve as 
     chairperson until the appointment of a chairperson; and
       (2) the chairperson shall have the authority to begin the 
     operations of the Commission, including the hiring of staff.
       (h) Meeting; Vacancies.--After its initial meeting, the 
     Commission shall meet upon the call of the chairperson or a 
     majority of its members. Any vacancy in the Commission shall 
     not affect its powers, but shall be filled in the same manner 
     in which the original appointment was made.
       (i) Powers of the Commission.--
       (1) In general.--
       (A) Hearings, testimony, and evidence.--The Commission may, 
     for the purpose of carrying out the provisions of this Act--
       (i) hold such hearings and sit and act at such times and 
     places, take such testimony, receive such evidence, 
     administer such oaths; and
       (ii) require, by subpoena or otherwise, the attendance and 
     testimony of such witnesses and the production of such books, 
     records, correspondence, memoranda, papers, and documents, 
     that the Commission or such designated subcommittee or 
     designated member may determine advisable.
       (B) Subpoenas.--Subpoenas issued under subparagraph (A)(ii) 
     may be issued to require attendance and testimony of 
     witnesses and the production of evidence relating to any 
     matter under investigation by the Commission.
       (C) Enforcement.--The provisions of sections 102 through 
     104 of the Revised Statutes of the United States (2 U.S.C. 
     192 through 194) shall apply in the case of any failure of 
     any witness to comply with any subpoena or to testify when 
     summoned under authority of this paragraph.
       (2) Contracting.--The Commission may contract with and 
     compensate government and private agencies or persons for 
     services without regard to section 3709 of the Revised 
     Statutes (41 U.S.C. 5) to enable the Commission to discharge 
     its duties under this Act.
       (3) Information from federal agencies.--The Commission is 
     authorized to secure directly from any executive department, 
     bureau, agency, board, commission, office, independent 
     establishment, or instrumentality of the Government, 
     information, suggestions, estimates, and statistics for the 
     purposes of this section. Each such department, bureau, 
     agency, board, commission, office, establishment, or 
     instrumentality shall, to the extent authorized by law, 
     furnish such information, suggestions, estimates, and 
     statistics directly to the Commission, upon request made by 
     the chairperson.

[[Page 11042]]

       (4) Support services.--
       (A) Government accountability office.--The Government 
     Accountability Office is authorized on a reimbursable basis 
     to provide the Commission with administrative services, 
     funds, facilities, staff, and other support services for the 
     performance of the functions of the Commission.
       (B) General services administration.--The Administrator of 
     General Services shall provide to the Commission on a 
     reimbursable basis such administrative support services as 
     the Commission may request.
       (C) Agencies.--In addition to the assistance under 
     subparagraphs (A) and (B), departments and agencies of the 
     United States are authorized to provide to the Commission 
     such services, funds, facilities, staff, and other support 
     services as the Commission may determine advisable as may be 
     authorized by law.
       (5) Postal services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as departments and agencies of the United States.
       (6) Immunity.--The Commission is an agency of the United 
     States for purposes of part V of title 18, United States Code 
     (relating to immunity of witnesses).
       (7) Director and staff of the commission.--
       (A) Director.--The chairperson of the Commission may 
     appoint a staff director and such other personnel as may be 
     necessary to enable the Commission to carry out its 
     functions, without regard to the provisions of title 5, 
     United States Code, governing appointments in the competitive 
     service and without regard to the provisions of chapter 51 
     and subchapter III of chapter 53 of that title relating to 
     classification and General Schedule pay rates, except that no 
     rate of pay fixed under this subsection may exceed the 
     equivalent of that payable to a person occupying a position 
     at level II of the Executive Schedule. Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement from the Commission, and such detailee shall 
     retain the rights, status, and privileges of his or her 
     regular employment without interruption.
       (B) Personnel as federal employees.--
       (i) In general.--The executive director and any personnel 
     of the Commission who are employees shall be employees under 
     section 2105 of title 5, United States Code, for purposes of 
     chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of that 
     title.
       (ii) Members of commission.--Clause (i) shall not be 
     construed to apply to members of the Commission.
       (C) Procurement of temporary and intermittent services.--
     With the approval of the majority of the Commission, the 
     chairperson of the Commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.
       (8) Compensation and travel expenses.--
       (A) Compensation.--Members shall not be paid by reason of 
     their service as members.
       (B) Travel expenses.--Each member of the Commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, in accordance with sections 5702 and 5703(b) of 
     title 5, United States Code.
       (j) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as necessary for the purposes of 
     carrying out the duties of the Commission.
       (k) Termination.--The Commission shall terminate on 
     December 31, 2039.

     SEC. 4. DUTIES AND RECOMMENDATIONS OF THE UNITED STATES 
                   AUTHORIZATION AND SUNSET COMMISSION.

       (a) Schedule and Review.--
       (1) In general.--Not later than 18 months after the date of 
     the enactment of this Act and at least once every 10 years 
     thereafter, the Commission shall submit to Congress a 
     legislative proposal that includes the schedule of review and 
     abolishment of agencies and programs (in this section 
     referred to as the ``Commission Schedule and Review bill'').
       (2) Schedule.--The schedule of the Commission shall provide 
     a timeline for the Commission's review and proposed 
     abolishment of--
       (A) at least 25 percent of unauthorized agencies or 
     programs as measured in dollars, including those identified 
     by the Congressional Budget Office under section 602(e)(3) of 
     title 2, United States Code; and
       (B) if applicable, at least 25 percent of the programs as 
     measured in dollars identified by the Office of Management 
     and Budget through its Program Assessment Rating Tool program 
     or other similar review program established by the Office of 
     Management and Budget as ineffective or results not 
     demonstrated.
       (3) Review of agencies.--In determining the schedule for 
     review and abolishment of agencies under paragraph (1), the 
     Commission shall provide that any agency that performs 
     similar or related functions be reviewed concurrently.
       (4) Criteria and review.--The Commission shall review each 
     agency and program identified under paragraph (1) in 
     accordance with the following criteria as applicable:
       (A) The effectiveness and the efficiency of the program or 
     agency.
       (B) The achievement of performance goals (as defined under 
     section 1115(g)(4) of title 31, United States Code).
       (C) The management of the financial and personnel issues of 
     the program or agency.
       (D) Whether the program or agency has fulfilled the 
     legislative intent surrounding its creation, taking into 
     account any change in legislative intent during the existence 
     of the program or agency.
       (E) Ways the agency or program could be less burdensome but 
     still efficient in protecting the public.
       (F) Whether reorganization, consolidation, abolishment, 
     expansion, or transfer of agencies or programs would better 
     enable the Federal Government to accomplish its missions and 
     goals.
       (G) The promptness and effectiveness of an agency in 
     handling complaints and requests made under section 552 of 
     title 5, United States Code (commonly referred to as the 
     Freedom of Information Act).
       (H) The extent that the agency encourages and uses public 
     participation when making rules and decisions.
       (I) The record of the agency in complying with requirements 
     for equal employment opportunity, the rights and privacy of 
     individuals, and purchasing products from historically 
     underutilized businesses.
       (J) The extent to which the program or agency duplicates or 
     conflicts with other Federal agencies, State or local 
     government, or the private sector and if consolidation or 
     streamlining into a single agency or program is feasible.
       (b) Schedule and Abolishment of Agencies and Programs.--
       (1) In general.--Not later than 18 months after the date of 
     the enactment of this Act and at least once every 10 years 
     thereafter, the Commission shall submit to the Congress a 
     Commission Schedule and Review bill that--
       (A) includes a schedule for review of agencies and 
     programs; and
       (B) abolishes any agency or program 2 years after the date 
     the Commission completes its review of the agency or program, 
     unless the agency or program is reauthorized by Congress.
       (2) Expedited congressional consideration procedures.--In 
     reviewing the Commission Schedule and Review bill, Congress 
     shall follow the expedited procedures under section 6.
       (c) Recommendations and Legislative Proposals.--
       (1) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Commission shall submit to 
     Congress and the President--
       (A) a report that reviews and analyzes according to the 
     criteria established under subsection (a)(4) for each agency 
     and program to be reviewed in the year in which the report is 
     submitted under the schedule submitted to Congress under 
     subsection (a)(1);
       (B) a proposal, if appropriate, to reauthorize, reorganize, 
     consolidate, expand, or transfer the Federal programs and 
     agencies to be reviewed in the year in which the report is 
     submitted under the schedule submitted to Congress under 
     subsection (a)(1); and
       (C) legislative provisions necessary to implement the 
     Commission's proposal and recommendations.
       (2) Additional reports.--The Commission shall submit to 
     Congress and the President additional reports as prescribed 
     under paragraph (1) on or before June 30 of every other year.
       (d) Rule of Construction.--Nothing in this section shall be 
     construed to limit the power of the Commission to review any 
     Federal program or agency.
       (e) Approval of Reports.--The Commission Schedule and 
     Review bill and all other legislative proposals and reports 
     submitted under this section shall require the approval of 
     not less than five members of the Commission.

     SEC. 5. EXPEDITED CONSIDERATION OF COMMISSION 
                   RECOMMENDATIONS.

       (a) Introduction and Committee Consideration.--
       (1) Introduction.--If any legislative proposal with 
     provisions is submitted to Congress under section 4(c), a 
     bill with that proposal and provisions shall be introduced in 
     the Senate by the majority leader, and in the House of 
     Representatives, by the Speaker. Upon introduction, the bill 
     shall be referred to the appropriate committees of Congress 
     under paragraph (2). If the bill is not introduced in 
     accordance with the preceding sentence, then any Member of 
     Congress may introduce that bill in their respective House of 
     Congress beginning on the date that is the 5th calendar day 
     that such House is in session following the date of the 
     submission of such proposal with provisions.
       (2) Committee consideration.--
       (A) Referral.--A bill introduced under paragraph (1) shall 
     be referred to any appropriate committee of jurisdiction in 
     the Senate, any appropriate committee of jurisdiction in the 
     House of Representatives, the Committee on the Budget and the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate, and the Committee on the Budget and the Committee 
     on Homeland Security and Governmental Affairs of the House of 
     Representatives.

[[Page 11043]]

       (B) Reporting.--Not later than 30 calendar days after the 
     introduction of the bill, each committee of Congress to which 
     the bill was referred shall report the bill or a committee 
     amendment thereto.
       (C) Discharge of committee.--If a committee to which is 
     referred a bill has not reported such bill at the end of 30 
     calendar days after its introduction or at the end of the 
     first day after there has been reported to the House involved 
     a bill, whichever is earlier, such committee shall be deemed 
     to be discharged from further consideration of such bill, and 
     such bill shall be placed on the appropriate calendar of the 
     House involved.
       (b) Expedited Procedure.--
       (1) Consideration.--
       (A) In general.--Not later than 5 calendar days after the 
     date on which a committee has been discharged from 
     consideration of a bill, the majority leader of the Senate, 
     or the majority leader's designee, or the Speaker of the 
     House of Representatives, or the Speaker's designee, shall 
     move to proceed to the consideration of the committee 
     amendment to the bill, and if there is no such amendment, to 
     the bill. It shall also be in order for any member of the 
     Senate or the House of Representatives, respectively, to move 
     to proceed to the consideration of the bill at any time after 
     the conclusion of such 5-day period.
       (B) Motion to proceed.--A motion to proceed to the 
     consideration of a bill is highly privileged in the House of 
     Representatives and is privileged in the Senate and is not 
     debatable. The motion is not subject to amendment, to a 
     motion to postpone consideration of the bill, or to a motion 
     to proceed to the consideration of other business. A motion 
     to reconsider the vote by which the motion to proceed is 
     agreed to or not agreed to shall not be in order. If the 
     motion to proceed is agreed to, the Senate or the House of 
     Representatives, as the case may be, shall immediately 
     proceed to consideration of the bill without intervening 
     motion, order, or other business, and the bill shall remain 
     the unfinished business of the Senate or the House of 
     Representatives, as the case may be, until disposed of.
       (C) Limited debate.--Debate on the bill and all amendments 
     thereto and on all debatable motions and appeals in 
     connection therewith shall be limited to not more than 50 
     hours, which shall be divided equally between those favoring 
     and those opposing the bill. A motion further to limit debate 
     on the bill is in order and is not debatable. All time used 
     for consideration of the bill, including time used for quorum 
     calls (except quorum calls immediately preceding a vote) and 
     voting, shall come from the 50 hours of debate.
       (D) Amendments.--No amendment that is not germane to the 
     provisions of the bill shall be in order in the Senate. In 
     the Senate, an amendment, any amendment to an amendment, or 
     any debatable motion or appeal is debatable for not to exceed 
     1 hour to be divided equally between those favoring and those 
     opposing the amendment, motion, or appeal.
       (E) Vote on final passage.--Immediately following the 
     conclusion of the debate on the bill, and the disposition of 
     any pending amendments under subparagraph (D), the vote on 
     final passage of the bill shall occur.
       (F) Other motions not in order.--A motion to postpone 
     consideration of the bill, a motion to proceed to the 
     consideration of other business, or a motion to recommit the 
     bill is not in order. A motion to reconsider the vote by 
     which the bill is agreed to or not agreed to is not in order.
       (2) Consideration by other house.--If, before the passage 
     by one House of the bill that was introduced in such House, 
     such House receives from the other House a bill as passed by 
     such other House--
       (A) the bill of the other House shall not be referred to a 
     committee and may only be considered for final passage in the 
     House that receives it under subparagraph (C);
       (B) the procedure in the House in receipt of the bill of 
     the other House, with respect to the bill that was introduced 
     in the House in receipt of the bill of the other House, shall 
     be the same as if no bill had been received from the other 
     House; and
       (C) notwithstanding subparagraph (B), the vote on final 
     passage shall be on the bill of the other House.

     Upon disposition of a bill that is received by one House from 
     the other House, it shall no longer be in order to consider 
     the bill that was introduced in the receiving House.
       (3) Consideration in conference.--
       (A) Convening of conference.--Immediately upon final 
     passage of a bill that results in a disagreement between the 
     two Houses of Congress with respect to a bill, conferees 
     shall be appointed and a conference convened.
       (B) Action on conference reports in the senate.--
       (i) Motion to proceed.--The motion to proceed to 
     consideration in the Senate of the conference report on a 
     bill may be made even though a previous motion to the same 
     effect has been disagreed to.
       (ii) Debate.--Consideration in the Senate of the conference 
     report (including a message between Houses) on a bill, and 
     all amendments in disagreement, including all amendments 
     thereto, and debatable motions and appeals in connection 
     therewith, shall be limited to 20 hours, equally divided and 
     controlled by the majority leader and the minority leader or 
     their designees. Debate on any debatable motion or appeal 
     related to the conference report (or a message between 
     Houses) shall be limited to 1 hour, to be equally divided 
     between, and controlled by, the mover and the manager of the 
     conference report (or a message between Houses).
       (iii) Conference report defeated.--Should the conference 
     report be defeated, debate on any request for a new 
     conference and the appointment of conferrees shall be limited 
     to 1 hour, to be equally divided between, and controlled by, 
     the manager of the conference report and the minority leader 
     or the minority leader's designee, and should any motion be 
     made to instruct the conferees before the conferees are 
     named, debate on such motion shall be limited to \1/2\ hour, 
     to be equally divided between, and controlled by, the mover 
     and the manager of the conference report. Debate on any 
     amendment to any such instructions shall be limited to 20 
     minutes, to be equally divided between and controlled by the 
     mover and the manager of the conference report. In all cases 
     when the manager of the conference report is in favor of any 
     motion, appeal, or amendment, the time in opposition shall be 
     under the control of the minority leader or the minority 
     leader's designee.
       (iv) Amendments in disagreement.--In any case in which 
     there are amendments in disagreement, time on each amendment 
     shall be limited to 30 minutes, to be equally divided 
     between, and controlled by, the manager of the conference 
     report and the minority leader or the minority leader's 
     designee. No amendment that is not germane to the provisions 
     of such amendments shall be received.
       (v) Limitation on motion to recommit.--A motion to recommit 
     the conference report is not in order.
       (c) Rules of the Senate and the House of Representatives.--
     This section is enacted by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively, and is deemed 
     to be part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a bill, and it supersedes other 
     rules only to the extent that it is inconsistent with such 
     rules; and
       (2) with full recognition of the constitutional right of 
     either House to change the rules (so far as they relate to 
     the procedure of that House) at any time, in the same manner, 
     and to the same extent as in the case of any other rule of 
     that House.

     SEC. 6. EXPEDITED CONSIDERATION OF COMMISSION SCHEDULE AND 
                   REVIEW BILL.

       (a) Introduction and Committee Consideration.--
       (1) Introduction.--The Commission Schedule and Review bill 
     submitted under section 4(b) shall be introduced in the 
     Senate by the majority leader, or the majority leader's 
     designee, and in the House of Representatives, by the 
     Speaker, or the Speaker's designee. Upon such introduction, 
     the Commission Schedule and Review bill shall be referred to 
     the appropriate committees of Congress under paragraph (2). 
     If the Commission Schedule and Review bill is not introduced 
     in accordance with the preceding sentence, then any member of 
     Congress may introduce the Commission Schedule and Review 
     bill in their respective House of Congress beginning on the 
     date that is the 5th calendar day that such House is in 
     session following the date of the submission of such 
     aggregate legislative language provisions.
       (2) Committee consideration.--
       (A) Referral.--A Commission Schedule and Review bill 
     introduced under paragraph (1) shall be referred to any 
     appropriate committee of jurisdiction in the Senate, any 
     appropriate committee of jurisdiction in the House of 
     Representatives, the Committee on the Budget and the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate and the Committee on the Budget and the Committee 
     on Oversight and Government Reform of the House of 
     Representatives. A committee to which a Commission Schedule 
     and Review bill is referred under this paragraph may review 
     and comment on such bill, may report such bill to the 
     respective House, and may not amend such bill.
       (B) Reporting.--Not later than 30 calendar days after the 
     introduction of the Commission Schedule and Review bill, each 
     Committee of Congress to which the Commission Schedule and 
     Review bill was referred shall report the bill.
       (C) Discharge of committee.--If a committee to which is 
     referred a Commission Schedule and Review bill has not 
     reported such Commission Schedule and Review bill at the end 
     of 30 calendar days after its introduction or at the end of 
     the first day after there has been reported to the House 
     involved a Commission Schedule and Review bill, whichever is 
     earlier, such committee shall be deemed to be discharged from 
     further consideration of such Commission Schedule and Review 
     bill, and such Commission Schedule and Review bill shall be 
     placed on the appropriate calendar of the House involved.
       (b) Expedited Procedure.--
       (1) Consideration.--

[[Page 11044]]

       (A) In general.--Not later than 5 calendar days after the 
     date on which a committee has been discharged from 
     consideration of a Commission Schedule and Review bill, the 
     majority leader of the Senate, or the majority leader's 
     designee, or the Speaker of the House of Representatives, or 
     the Speaker's designee, shall move to proceed to the 
     consideration of the Commission Schedule and Review bill. It 
     shall also be in order for any member of the Senate or the 
     House of Representatives, respectively, to move to proceed to 
     the consideration of the Commission Schedule and Review bill 
     at any time after the conclusion of such 5-day period.
       (B) Motion to proceed.--A motion to proceed to the 
     consideration of a Commission Schedule and Review bill is 
     highly privileged in the House of Representatives and is 
     privileged in the Senate and is not debatable. The motion is 
     not subject to amendment, to a motion to postpone 
     consideration of the Commission Schedule and Review bill, or 
     to a motion to proceed to the consideration of other 
     business. A motion to reconsider the vote by which the motion 
     to proceed is agreed to or not agreed to shall not be in 
     order. If the motion to proceed is agreed to, the Senate or 
     the House of Representatives, as the case may be, shall 
     immediately proceed to consideration of the Commission 
     Schedule and Review bill without intervening motion, order, 
     or other business, and the Commission Schedule and Review 
     bill shall remain the unfinished business of the Senate or 
     the House of Representatives, as the case may be, until 
     disposed of.
       (C) Limited debate.--Debate on the Commission Schedule and 
     Review bill and on all debatable motions and appeals in 
     connection therewith shall be limited to not more than 10 
     hours, which shall be divided equally between those favoring 
     and those opposing the Commission Schedule and Review bill. A 
     motion further to limit debate on the Commission Schedule and 
     Review bill is in order and is not debatable. All time used 
     for consideration of the Commission Schedule and Review bill, 
     including time used for quorum calls (except quorum calls 
     immediately preceding a vote) and voting, shall come from the 
     10 hours of debate.
       (D) Amendments.--No amendment to the Commission Schedule 
     and Review bill shall be in order in the Senate and the House 
     of Representatives.
       (E) Vote on final passage.--Immediately following the 
     conclusion of the debate on the Commission Schedule and 
     Review bill, the vote on final passage of the Commission 
     Schedule and Review bill shall occur.
       (F) Other motions not in order.--A motion to postpone 
     consideration of the Commission Schedule and Review bill, a 
     motion to proceed to the consideration of other business, or 
     a motion to recommit the Commission Schedule and Review bill 
     is not in order. A motion to reconsider the vote by which the 
     Commission Schedule and Review bill is agreed to or not 
     agreed to is not in order.
       (2) Consideration by other house.--If, before the passage 
     by one House of the Commission Schedule and Review bill that 
     was introduced in such House, such House receives from the 
     other House a Commission Schedule and Review bill as passed 
     by such other House--
       (A) the Commission Schedule and Review bill of the other 
     House shall not be referred to a committee and may only be 
     considered for final passage in the House that receives it 
     under subparagraph (C);
       (B) the procedure in the House in receipt of the Commission 
     Schedule and Review bill of the other House, with respect to 
     the Commission Schedule and Review bill that was introduced 
     in the House in receipt of the Commission Schedule and Review 
     bill of the other House, shall be the same as if no 
     Commission Schedule and Review bill had been received from 
     the other House; and
       (C) notwithstanding subparagraph (B), the vote on final 
     passage shall be on the Commission Schedule and Review bill 
     of the other House. Upon disposition of a Commission Schedule 
     and Review bill that is received by one House from the other 
     House, it shall no longer be in order to consider the 
     Commission Schedule and Review bill that was introduced in 
     the receiving House.
       (c) Rules of the Senate and the House of Representatives.--
     This section is enacted by Congress--
       (1) as an exercise of the rulemaking power of the Senate 
     and the House of Representatives, respectively, and is deemed 
     to be part of the rules of each House, respectively, but 
     applicable only with respect to the procedure to be followed 
     in that House in the case of a Commission Schedule and Review 
     bill, and it supersedes other rules only to the extent that 
     it is inconsistent with such rules; and
       (2) with full recognition of the constitutional right of 
     either House to change the rules (so far as they relate to 
     the procedure of that House) at any time, in the same manner, 
     and to the same extent as in the case of any other rule of 
     that House.
                                 ______
                                 
      By Mr. LEAHY (for himself and Mr. Sanders):
  S. 929. A bill to amend the Internal Revenue Code of 1986 to provide 
a Federal income tax credit for the purchase of certain nonroad 
equipment powered by alternative power sources; to the Committee on 
Finance.
  Mr. LEAHY. Mr. President, I rise today with my good friend from 
Vermont, Senator Sanders, to introduce legislation that will help our 
environment and our economy by providing a 25 percent tax credit 
towards the purchase of environmentally friendly lawn, garden, and 
forestry power equipment.
  There are an estimated 50 million acres of lawns and managed turf 
grass in the U.S. and the small engines used in power equipment 
predominantly used today to maintain these lawns emit a variety of 
pollutants that can be harmful to people and the environment. By 
promoting the use of alternative fuels, we can reduce the carbon 
footprint of lawn and garden equipment and reduce air and water 
pollution.
  The Environmental Protection Agency, EPA, recently finalized a new 
emission control program to reduce hydrocarbon emissions and 
evaporative emissions from the small, spark-ignition engines that are 
commonly used in lawn, garden, and forestry equipment. I applaud the 
EPA for setting these new emissions standards because they eventually 
will reduce the harmful health effects of ozone and carbon monoxide. I 
also appreciate the work being done in the State of California to set 
the stage for these tougher standards and to provide State funds for 
rebates to consumers who purchase the cleanest types of lawn and garden 
equipment.
  We can do more, though, to advance the use of cleaner, alternative 
fueled equipment. Currently, the cleanest, alternative powered 
equipment typically costs dramatically more to produce--in part due to 
their relatively low volumes--compared to higher volume products 
powered by traditional technologies. Our bill is designed to help 
partially close this price differential so that consumers can afford 
the very cleanest products and help advance the most cutting-edge, new 
technologies.
  That is why the bill we are introducing today would reduce air 
pollution even further than the EPA or California standards by 
providing an immediate incentive for people to go beyond the current 
powered equipment emission standards and purchase cleaner, 
alternatively powered or alternative fuel engines and equipment that 
emit half of the emission levels called for by the EPA and that operate 
on little or no fossil fuels. In line with past tax credits that were 
successful in advancing new technologies and boosting consumer demand 
for environmentally friendly products like hybrid vehicles and energy 
efficient home appliances, our new tax credit would give Americans a 
powerful incentive to buy clean, alternative energy power equipment.
  I want to thank the Outdoor Power Equipment Institute and the 
National Audubon Society for their early endorsements of this bill. As 
the Senate prepares to take a thorough look at our energy and 
environmental policies this year, I look forward to working with my 
colleagues to find new ways to further reduce the air emissions and 
fossil fuel consumption of our Nation's lawn, garden, and forestry 
equipment.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 929

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

     SECTION 1. CREDIT FOR CERTAIN NONROAD EQUIPMENT.

       (a) Allowance of Credit.--Subpart A of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by inserting after section 25D the following 
     new section:

     ``SEC. 25E. CREDIT FOR CERTAIN NONROAD EQUIPMENT.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter an amount equal to 25 percent of the qualified 
     nonroad equipment expenses for the taxable year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     shall not exceed $1,000.
       ``(c) Qualified Nonroad Equipment Expenses.--For purposes 
     of this section--
       ``(1) In general.--The term `qualified nonroad equipment 
     expenses' means the cost

[[Page 11045]]

     of any alternative power nonroad equipment the original use 
     of which commences with the taxpayer and which is placed in 
     service by the taxpayer during the taxable year.
       ``(2) Alternative power nonroad equipment.--The term 
     `alternative power nonroad equipment' means any equipment 
     that is primarily used for lawn, garden, or forestry 
     purposes, and that--
       ``(A) is powered by a motor drawing current from solar 
     power, electricity, or rechargeable or replaceable batteries,
       ``(B) has a hybrid-electric drive train or cutting system 
     which is powered by a generator or electrical storage device 
     combined with a small engine, or
       ``(C) is powered by alternative power sources and--
       ``(i) is regulated by the Environmental Protection Agency 
     as a new, spark-ignition engine under part 1054 of title 40, 
     Code of Federal Regulations (or any successor regulation), 
     and
       ``(ii) is certified by the Environmental Protection Agency 
     as having an engine family that emits no more than 50 percent 
     of the number of grams per kilowatt hour of regulated 
     pollutants allowable under Phase 3 of the exhaust emissions 
     standards under section 103 of part 1054 of title 40, Code of 
     Federal Regulations (or any successor regulation), relating 
     to handheld engines, or section 105 of such part, relating to 
     nonhandheld engines, whichever is applicable.
       ``(3) Alternative power sources.--The term `alternative 
     power sources' means any alternative fuel as determined by 
     the Secretary, in coordination with the Office of Energy 
     Efficiency and Renewable Energy.''.
       (b) Conforming Amendments.--
       (1) Section 24(b)(3)(B) of the Internal Revenue Code of 
     1986 is amended by striking ``and 25B'' and inserting ``, 
     25B, and 25E''.
       (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
     inserting ``25E,'' after ``25D,''.
       (3) Section 25B(g)(2) of such Code is amended by striking 
     ``section 23'' and inserting ``sections 23 and 25E''.
       (4) Section 904(i) of such Code is amended by striking 
     ``and 25B'' and inserting ``25B, and 25E''.
       (5) Section 1400C(d)(2) of such Code is amended by striking 
     ``and 25D'' and inserting ``25D, and 25E''.
       (c) Clerical Amendment.--The table of sections for subpart 
     A of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 25D the following new item:

``Sec. 25E. Credit for certain nonroad equipment.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to purchases made after the date of the enactment 
     of this Act.
                                 ______
                                 
      By Mr. FEINGOLD (for himself, Mr. Durbin, Mr. Kerry, Mr. 
        Whitehouse, Mr. Wyden, Mr. Udall of New Mexico, Mr. Merkley, 
        and Mr. Kennedy):
  S. 931. A bill to amend title 9 of the United States Code with 
respect to arbitration; to the Committee on the Judiciary.
  Mr. FEINGOLD. Mr. President, today I will introduce the Arbitration 
Fairness Act of 2007. Just as its name suggests, the Arbitration 
Fairness Act is designed to return fairness to the arbitration system. 
This bill is not an anti-arbitration bill. If anything, it is pro-
arbitration. I firmly believe that this bill will strengthen the 
arbitration system by returning arbitration to a more equitable design 
that reflects the intent of the original arbitration legislation, the 
Federal Arbitration Act.
  President Calvin Coolidge signed the Federal Arbitration Act, FAA, 
into law on February 12, 1925. Congress passed the FAA to make 
arbitration an enforceable alternative to the civil courts. Even as 
early as the 1920's, there were concerns about the efficiency of the 
civil court system and a desire to allow a speedier alternative. The 
intent of the FAA, as expressed in a 1923 hearing before a Subcommittee 
of the Senate Judiciary Committee, was ``to enable business men to 
settle their disputes expeditiously and economically.'' In a later 
hearing on the FAA, it was clarified that the legislation was not 
intended to apply to the employment contracts of those businesses. This 
distinction is important because it illustrates that, while arbitration 
was something that the FAA's original sponsors wanted to promote, they 
were also careful to make clear that they didn't intend for arbitration 
to become a weapon to be wielded by the powerful against those with 
less financial and negotiating power.
  Since the FAA's enactment, the use of arbitration has grown 
exponentially. Arbitration certainly has advantages. It can be a fair 
and efficient way to settle disputes. I strongly support voluntary, 
alternative dispute resolution methods, and I believe we ought to 
encourage their use. But I also believe that arbitration is a fair way 
to settle disputes between consumers and lenders only when it is 
entered into knowingly and voluntarily by both parties to the dispute 
after the dispute has arisen. Otherwise arbitration can be used as a 
weapon by the stronger party against the weaker party.
  One of the most fundamental principles of our justice system is the 
constitutional right to take a dispute to court. Indeed, all Americans 
have the right in civil and criminal cases to a trial by jury. The 
right to a jury trial in civil cases in Federal court is contained in 
the Seventh Amendment to the Constitution. Many States provide a 
similar right to a jury trial in civil matters filed in state court.
  I have been concerned for many years that mandatory arbitration 
clauses are slowly eroding the legal protections that should be 
available to all Americans. A large and growing number of corporations 
now require millions of consumers and employees to sign contracts that 
include mandatory arbitration clauses. Most of these individuals have 
little or no meaningful opportunity to negotiate the terms of their 
contracts and so find themselves having to choose either to accept a 
mandatory arbitration clause or to forgo securing employment or needed 
goods and services. Incredibly, mandatory arbitration clauses have been 
used to prevent individuals from trying to vindicate their civil rights 
under statutes specifically passed by Congress to protect them.
  There is a range of ways in which mandatory arbitration can be 
particularly hostile to individuals attempting to assert their rights. 
For example, the administrative fees--both to gain access to the 
arbitration forum and to pay for the ongoing services of the arbitrator 
or arbitrators--can be so high as to act as a de facto bar for many 
individuals who have a claim that requires resolution. In addition, 
arbitration generally lacks discovery proceedings and other civil due 
process protections.
  Furthermore, there is no meaningful judicial review of arbitrators' 
decisions. Under mandatory, binding arbitration, even if a party 
believes that the arbitrator did not consider all the facts or follow 
the law, the party cannot file a suit in court. The only basis for 
challenging a binding arbitration decision is fairly narrow: if there 
is reason to believe that the arbitrator committed actual fraud, or was 
biased, corrupt, or guilty of misconduct, or exceeded his or her 
powers. Because mandatory, binding arbitration is so conclusive, it is 
a credible means of dispute resolution only when all parties understand 
the full ramifications of agreeing to it.
  Unfortunately, in a variety of contexts--employment agreements, 
credit card agreements, HMO contracts, securities broker contracts, and 
other consumer and franchise agreements--mandatory arbitration is fast 
becoming the rule, rather than the exception. The practice of forcing 
employees to use arbitration has been on the rise since the Supreme 
Court's Circuit City decision in 2001. Unless Congress acts, the 
protections it has provided through law for American workers, 
investors, and consumers, will slowly become irrelevant.
  The Arbitration Fairness Act of 2009, which I am happy to say has 
already been introduced in the House by Rep. Hank Johnson, reinstates 
the FAA's original intent by requiring that agreements to arbitrate 
employment, consumer, franchise, or civil rights disputes be made after 
the dispute has arisen. The bill does not prohibit arbitration. What it 
does do is prevent a party with greater bargaining power from forcing 
individuals into arbitration through a contractual provision. It will 
ensure that citizens once again have a true choice between arbitration 
and the traditional civil court system.
  I should note that the bill includes two notable changes from 
versions that have been introduced in previous Congresses. First, the 
bill creates a new

[[Page 11046]]

Chapter 4 of Title 9, separating the new provisions concerning 
arbitration of consumer, employment, franchise, and civil rights 
disputes from the Federal Arbitration Act. This should give some 
comfort to those who are concerned that the bill might have an 
unintended effect on business to business arbitration.
  Second, the bill reverses the Supreme Court's April 2009 decision in 
14 Park Plaza v. Pyett. In that case, the Court held that arbitration 
provisions included in collective bargaining agreements can have the 
effect of preventing employees from pursuing employment discrimination 
claims in court. Unions have never believed this was the case. The 
decision once again expands the reach of arbitration, making less 
effective statutes specifically intended by Congress to protect 
workers. Therefore, the bill provides that it generally does not apply 
to arbitration provisions contained in collective bargaining 
agreements, except that such provisions may not waive employees' rights 
to take constitutional or statutory claims to court.
  In our system of Government, Congress and state legislatures pass 
laws and the courts are available to citizens to make sure those laws 
are enforced. But the rule of law means little if the only forum 
available to those who believe they have been wronged is an 
alternative, unaccountable system where the law passed by the 
legislature does not necessarily apply. This legislation both protects 
Americans from exploitation and strengthens a valuable alternative 
method of dispute resolution. These are both worthy ends, and I hope 
that my colleagues in the Senate will join me in working to pass this 
important bill.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 931

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Arbitration Fairness Act of 
     2009''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) The Federal Arbitration Act (now enacted as chapter 1 
     of title 9 of the United States Code) was intended to apply 
     to disputes between commercial entities of generally similar 
     sophistication and bargaining power.
       (2) A series of United States Supreme Court decisions have 
     changed the meaning of the Act so that it now extends to 
     disputes between parties of greatly disparate economic power, 
     such as consumer disputes and employment disputes. As a 
     result, a large and rapidly growing number of corporations 
     are forcing millions of consumers and employees to give up 
     their right to have disputes resolved by a judge or jury, and 
     instead submit their claims to binding arbitration.
       (3) Most consumers and employees have little or no 
     meaningful option whether to submit their claims to 
     arbitration. Few people realize or understand the importance 
     of the deliberately fine print that strips them of rights, 
     and because entire industries are adopting these clauses, 
     people increasingly have no choice but to accept them. They 
     must often give up their rights as a condition of having a 
     job, getting necessary medical care, buying a car, opening a 
     bank account, getting a credit card, and the like. Often 
     times, they are not even aware that they have given up their 
     rights.
       (4) Private arbitration companies are sometimes under great 
     pressure to devise systems that favor the corporate repeat 
     players who decide whether those companies will receive their 
     lucrative business.
       (5) Mandatory arbitration undermines the development of 
     public law for civil rights and consumer rights because there 
     is no meaningful judicial review of arbitrators' decisions. 
     With the knowledge that their rulings will not be seriously 
     examined by a court applying current law, arbitrators enjoy 
     near complete freedom to ignore the law and even their own 
     rules.
       (6) Mandatory arbitration is a poor system for protecting 
     civil rights and consumer rights because it is not 
     transparent. While the American civil justice system features 
     publicly accountable decision makers who generally issue 
     public, written decisions, arbitration often offers none of 
     these features.
       (7) Many corporations add to arbitration clauses unfair 
     provisions that deliberately tilt the systems against 
     individuals, including provisions that strip individuals of 
     substantive statutory rights, ban class actions, and force 
     people to arbitrate their claims hundreds of miles from their 
     homes. While some courts have been protective of individuals, 
     too many courts have erroneously upheld even egregiously 
     unfair mandatory arbitration clauses in deference to a 
     supposed Federal policy favoring arbitration over the 
     constitutional rights of individuals.

     SEC. 3. ARBITRATION OF EMPLOYMENT, CONSUMER, FRANCHISE, AND 
                   CIVIL RIGHTS DISPUTES.

       (a) In General.--Title 9 of the United States Code is 
     amended by adding at the end the following:

``CHAPTER 4--ARBITRATION OF EMPLOYMENT, CONSUMER, FRANCHISE, AND CIVIL 
                            RIGHTS DISPUTES

``Sec.
``401. Definitions.
``402. Validity and enforceability.

     ``Sec. 401. Definitions

       ``In this chapter--
       ``(1) the term `civil rights dispute' means a dispute--
       ``(A) arising under--
       ``(i) the Constitution of the United States or the 
     constitution of a State; or
       ``(ii) a Federal or State statute that prohibits 
     discrimination on the basis of race, sex, disability, 
     religion, national origin, or any invidious basis in 
     education, employment, credit, housing, public accommodations 
     and facilities, voting, or program funded or conducted by the 
     Federal Government or State government, including any statute 
     enforced by the Civil Rights Division of the Department of 
     Justice and any statute enumerated in section 62(e) of the 
     Internal Revenue Code of 1986 (relating to unlawful 
     discrimination); and
       ``(B) in which at least 1 party alleging a violation of the 
     Constitution of the United States, a State constitution, or a 
     statute prohibiting discrimination is an individual;
       ``(2) the term `consumer dispute' means a dispute between a 
     person other than an organization who seeks or acquires real 
     or personal property, services (including services relating 
     to securities and other investments), money, or credit for 
     personal, family, or household purposes and the seller or 
     provider of such property, services, money, or credit;
       ``(3) the term `employment dispute' means a dispute between 
     an employer and employee arising out of the relationship of 
     employer and employee as defined in section 3 of the Fair 
     Labor Standards Act of 1938 (29 U.S.C. 203);
       ``(4) the term `franchise dispute' means a dispute between 
     a franchisee with a principal place of business in the United 
     States and a franchisor arising out of or relating to 
     contract or agreement by which--
       ``(A) a franchisee is granted the right to engage in the 
     business of offering, selling, or distributing goods or 
     services under a marketing plan or system prescribed in 
     substantial part by a franchisor;
       ``(B) the operation of the franchisee's business pursuant 
     to such plan or system is substantially associated with the 
     franchisor's trademark, service mark, trade name, logotype, 
     advertising, or other commercial symbol designating the 
     franchisor or its affiliate; and
       ``(C) the franchisee is required to pay, directly or 
     indirectly, a franchise fee; and
       ``(5) the term `predispute arbitration agreement' means any 
     agreement to arbitrate a dispute that had not yet arisen at 
     the time of the making of the agreement.

     ``Sec. 402. Validity and enforceability

       ``(a) In General.--Notwithstanding any other provision of 
     this title, no predispute arbitration agreement shall be 
     valid or enforceable if it requires arbitration of an 
     employment, consumer, franchise, or civil rights dispute.
       ``(b) Applicability.--
       ``(1) In general.--An issue as to whether this chapter 
     applies to an arbitration agreement shall be determined under 
     Federal law. The applicability of this chapter to an 
     agreement to arbitrate and the validity and enforceability of 
     an agreement to which this chapter applies shall be 
     determined by the court, rather than the arbitrator, 
     irrespective of whether the party resisting arbitration 
     challenges the arbitration agreement specifically or in 
     conjunction with other terms of the contract containing such 
     agreement.
       ``(2) Collective bargaining agreements.--Nothing in this 
     chapter shall apply to any arbitration provision in a 
     contract between an employer and a labor organization or 
     between labor organizations, except that no such arbitration 
     provision shall have the effect of waiving the right of an 
     employee to seek judicial enforcement of a right arising 
     under a provision of the Constitution of the United States, a 
     State constitution, or a Federal or State statute, or public 
     policy arising therefrom.''.
       (b) Technical and Conforming Amendments.--
       (1) In general.--Title 9 of the United States Code is 
     amended--
       (A) in section 1, by striking ``of seamen,'' and all that 
     follows through ``interstate commerce'';
       (B) in section 2, by inserting ``or as otherwise provided 
     in chapter 4'' before the period at the end;
       (C) in section 208--

[[Page 11047]]

       (i) in the section heading, by striking ``Chapter 1; 
     residual application'' and inserting ``Application''; and
       (ii) by adding at the end the following: ``This chapter 
     applies to the extent that this chapter is not in conflict 
     with chapter 4.''; and
       (D) in section 307--
       (i) in the section heading, by striking ``Chapter 1; 
     residual application'' and inserting ``Application''; and
       (ii) by adding at the end the following: ``This chapter 
     applies to the extent that this chapter is not in conflict 
     with chapter 4.''.
       (2) Table of sections.--
       (A) Chapter 2.--The table of sections for chapter 2 of 
     title 9, United States Code, is amended by striking the item 
     relating to section 208 and inserting the following:

``208. Application.''.

       (B) Chapter 3.--The table of sections for chapter 3 of 
     title 9, United States Code, is amended by striking the item 
     relating to section 307 and inserting the following:

``307. Application.''.

       (3) Table of chapters.--The table of chapters for title 9, 
     United States Code, is amended by adding at the end the 
     following:

``4. Arbitration of employment, consumer, franchise, and civil rights 
    disputes.................................................401''.....

     SEC. 4. EFFECTIVE DATE.

       This Act, and the amendments made by this Act, shall take 
     effect on the date of enactment of this Act and shall apply 
     with respect to any dispute or claim that arises on or after 
     such date.

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