[Senate Report 104-342]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 552
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-342
_______________________________________________________________________


 
         FEDERAL TRADE COMMISSION REAUTHORIZATION ACT OF 1996

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   ON

                                S. 1840




                 July 31, 1996.--Ordered to be printed

                                     

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred fourth congress
                             second session

  LARRY PRESSLER, South Dakota, 
             Chairman
ERNEST F. HOLLINGS, South Carolina   TED STEVENS, Alaska
DANIEL K. INOUYE, Hawaii             JOHN McCAIN, Arizona
WENDELL H. FORD, Kentucky            CONRAD BURNS, Montana
J. JAMES EXON, Nebraska              SLADE GORTON, Washington
JOHN D. ROCKEFELLER IV, West VirginiaTRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
JOHN B. BREAUX, Louisiana            OLYMPIA J. SNOWE, Maine
RICHARD H. BRYAN, Nevada             JOHN ASHCROFT, Missouri
BYRON L. DORGAN, North Dakota        BILL FRIST, Tennessee
RON WYDEN, Oregon                    SPENCER ABRAHAM, Michigan
  Patric G. Link, Chief of Staff
Kevin G. Curtin, Democratic Chief 
    Counsel and Staff Director


                                                       Calendar No. 552
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-342
_______________________________________________________________________



          FEDERAL TRADE COMMISSION REAUTHORIZATION ACT OF 1996

                                _______
                                

                 July 31, 1996.--Ordered to be printed

_______________________________________________________________________


      Mr. Pressler, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1840]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1840) ``A bill to amend the 
Federal Trade Commission Act to authorize appropriations for 
the Federal Trade Commission'', having considered the same, 
reports favorably thereon and recommends that the bill do pass.

                          Purpose of the Bill

  The bill would authorize $107,000,000 in fiscal year 1997 and 
$111,000,000 in fiscal year 1998 for the activities of the 
Federal Trade Commission (FTC).

                          Background and Needs

  In 1994, Congress authorized appropriations for the FTC 
through fiscal year (FY) 1996. That authorization followed a 
12-year period in which appropriations for the FTC were not 
authorized. In that authorization Act, significant changes were 
made to the FTC's authorizing statutes.
  The expenditures authorized by this bill would permit the FTC 
to maintain existing staffing levels of 979 full time 
equivalent employees (FTEs).

                          Legislative History

  On May 7, 1996, the Subcommittee on Consumer Affairs, Foreign 
Commerce and Tourism of the Committee on Commerce, Science, and 
Transportation held a hearing on the FTC in preparation for FTC 
reauthorization legislation.
  Senators Pressler, Gorton, Hollings, Bryan, and Snowe 
introduced S. 1840 on June 5, 1996. On June 6, 1996, the 
Committee, during open Executive Session, ordered the bill 
favorably reported without amendment.
  Congressmen Oxley and Manton introduced an identical 
companion bill (H.R. 3553) in the House of Representatives.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and Section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 14, 1996.
Hon. Larry Pressler,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1840, the Federal 
Trade Commission Reauthorization Act of 1996.
    Enactment of S. 1840 would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerely,
                                         June E. O'Neill, Director.

               congressional budget office cost estimate

    1. Bill No.: S. 1840.
    2. Bill title: Federal Trade Commission Reauthorization Act 
of 1996.
    3. Bill status: As ordered reported by the Senate Committee 
on Commerce, Science, and Transportation on June 6, 1996.
    4. Bill purpose: S. 1840 would authorize appropriations of 
$107 million for 1997 and $111 million for 1998 for the Federal 
Trade Commission.
    5. Estimated cost to the Federal Government: Assuming 
appropriation of the authorized amounts, CBO estimates that 
enacting S. 1840 would result in costs to the federal 
government of $218 million over the 1997-2002 period. Estimated 
outlays are based on historical spending rates for the 
authorized activities. The following table summarizes the 
estimated budgetary effects of S. 1840.

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                        1996       1997       1998       1999       2000       2001       2002  
----------------------------------------------------------------------------------------------------------------
Spending under current law:                                                                                     
    Budget authority...............         79  .........  .........  .........  .........  .........  .........
    Estimated outlays..............         80          6  .........  .........  .........  .........  .........
Proposed changes:                                                                                               
    Authorization level............  .........        107        111  .........  .........  .........  .........
    Estimated outlays..............  .........         98        111          9  .........  .........  .........
Projected spending under S. 1840:                                                                               
    Authorization level \1\........         79        107        111  .........  .........  .........  .........
    Estimated outlays..............         80        104        111          9  .........  .........  .........
----------------------------------------------------------------------------------------------------------------
\1\ The 1996 level is the amount appropriated for that year.                                                    

    The costs of this bill fall within budget function 370.
    6. Pay-as-you-go considerations: None.
    7. Estimated impact on State, local, and tribal 
governments: S. 1840 contains no intergovernmental mandates as 
defined in Public Law 104-4 and would have no direct impact on 
the budgets of State, local, or tribal governments.
    8. Estimated impact on the private sector: This bill would 
impose no new private-sector mandates as defined in Public Law 
104-4.
    9. Previous CBO estimate: None.
    10. Estimate prepared by: Federal cost estimate: Rachel 
Forward and Jonathan Womer; State and local government impact: 
Leo Lex; and private sector impact: Jean Wooster.
    11. Estimate approved by: Robert A. Sunshine (for Paul N. 
Van de Water, Assistant Director for Budget Analysis).

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported.
  This legislation simply provides an authorization of 
appropriations for the FTC in fiscal years 1997 and 1998. As 
the legislation makes no programmatic changes concerning the 
FTC and its activities, it will have no effect on the number of 
individuals regulated or on the personal privacy of regulated 
individuals. As the legislation merely authorizes 
appropriations for the FTC at a level sufficient to maintain 
existing staffing levels, the legislation should not have any 
significant new economic impact and it will not change the 
paperwork requirements associated with the FTC.

                      Section-by-Section Analysis

Section 1. Short title

  Section 1 of the bill provides that the bill may be cited as 
the ``Federal Trade Commission Reauthorization Act of 1996''.

Section 2. Reauthorization

  Section 2 authorizes expenditures by the FTC of $107 million 
in FY 1997 and $111 million in FY 1998.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                      TITLE 15. COMMERCE AND TRADE

  CHAPTER 2. FEDERAL TRADE COMMISSION; PROMOTION OF EXPORT TRADE AND 
              PREVENTION OF UNFAIR METHODS OF COMPETITION

                        FEDERAL TRADE COMMISSION

Sec. 57c. Authorization of appropriations

  There are authorized to be appropriated to carry out the 
functions, powers, and duties of the Commission not to exceed 
$92,700,000 for fiscal year 1994; not to exceed $99,000,000 for 
fiscal year 1995; [and not to exceed] not to exceed 
$102,000,000 for fiscal year [1996.] 1996; not to exceed 
$107,000,000 for fiscal year 1997; and not to exceed 
$111,000,000 for fiscal year 1988.

                                
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