[House Report 105-832]
[From the U.S. Government Publishing Office]




                                                 Union Calendar No. 473

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105th Congress                                                   Report
2d Session              HOUSE OF REPRESENTATIVES                105-832

_______________________________________________________________________

                                     

                       REPORT ON THE LEGISLATIVE

                        AND OVERSIGHT ACTIVITIES

                                 OF THE

                      COMMITTEE ON WAYS AND MEANS

                               DURING THE

                             105TH CONGRESS





 December 18, 1998.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                               --------

                    U.S. GOVERNMENT PRINTING OFFICE                    
69-006                     WASHINGTON : 1998




                      COMMITTEE ON WAYS AND MEANS

                      BILL ARCHER, Texas, Chairman

PHILIP M. CRANE, Illinois            CHARLES B. RANGEL, New York
BILL THOMAS, California              FORTNEY PETE STARK, California
E. CLAY SHAW, Jr., Florida           ROBERT T. MATSUI, California
NANCY L. JOHNSON, Connecticut        BARBARA B. KENNELLY, Connecticut
JIM BUNNING, Kentucky                WILLIAM J. COYNE, Pennsylvania
AMO HOUGHTON, New York               SANDER M. LEVIN, Michigan
WALLY HERGER, California             BENJAMIN L. CARDIN, Maryland
JIM McCRERY, Louisiana               JIM McDERMOTT, Washington
DAVE CAMP, Michigan                  GERALD D. KLECZKA, Wisconsin
JIM RAMSTAD, Minnesota               JOHN LEWIS, Georgia
JIM NUSSLE, Iowa                     RICHARD E. NEAL, Massachusetts
SAM JOHNSON, Texas                   MICHAEL R. McNULTY, New York
JENNIFER DUNN, Washington            WILLIAM J. JEFFERSON, Louisiana
MAC COLLINS, Georgia                 JOHN S. TANNER, Tennessee
ROB PORTMAN, Ohio                    XAVIER BECERRA, California
PHILIP S. ENGLISH, Pennsylvania      KAREN L. THURMAN, Florida
JOHN ENSIGN, Nevada
JON CHRISTENSEN, Nebraska
WES WATKINS, Oklahoma
J.D. HAYWORTH, Arizona
JERRY WELLER, Illinois
KENNY HULSHOF, Missouri


                         LETTER OF TRANSMITTAL

                              ----------                              

                          House of Representatives,
                               Committee on Ways and Means,
                                 Washington, DC, December 18, 1998.
Hon. Robin H. Carle,
Clerk of the House of Representatives,
The Capitol, Washington DC.
    Dear Ms. Carle: I am herewith transmitting, pursuant to 
House Rule XI, clause 2(d), the report of the Committee on Ways 
and Means on its legislative and oversight activities during 
the 105th Congress. With best personal regards,
            Sincerely,
                                             Bill Archer, Chairman.



                            C O N T E N T S

                              ----------                              
                                                                   Page
Transmittal Letter...............................................   III
Forward..........................................................   VII
 I. Legislative Activity Review..................................     1
        A. Legislative Review of Budget Reconciliation: Balanced 
          Budget Act of 1997 and Taxpayer Relief Act of 1997.....     1
        B. Legislative Review of Tax, Trust Fund, and Pension 
          Issues.................................................     7
        C. Legislative Review of Trade Issues....................    13
        D. Legislative Review of Health Issues...................    33
        E. Legislative Review of Social Security Issues..........    36
        F. Legislative Review of Human Resources Issues..........    39
        G. Legislative Review of Debt Issues.....................    46
II. Oversight Activity Review....................................    46
        A. Oversight Agenda......................................    46
        B. Actions taken and recommendations made with respect to 
          oversight plan.........................................    55
        C. Additional oversight activities, and any 
          recommendations or actions taken.......................    67
Appendix I. Jurisdiction of the Committee on Ways and Means......    71
Appendix II. Historical Note.....................................    86
Appendix III. Statistical Review of the Activities of the 
  Committee on Ways and Means....................................    92
Appendix IV. Chairmen of the Committee on Ways and Means and 
  Membership of the Committee from the 1st through the 105th 
  Congresses.....................................................    97


                                FOREWORD

    Clause 1(d) of Rule XI of the Rules of the House, regarding 
the rules of procedure for committees, contains a requirement 
that each committee prepare a report at the conclusion of each 
Congress summarizing its activities. The 104th Congress added 
subsections on legislative and oversight activities, including 
a summary comparison of oversight plans and eventual 
recommendations and actions. The full text of the Rule follows:

          (d)(1) Each committee shall submit to the House not 
        later than January 2 of each odd-numbered year, a 
        report on the activities of that committee under this 
        rule and rule X during the Congress ending on January 3 
        of such year.
          (2) Such report shall include separate sections 
        summarizing the legislative and oversight activities of 
        the committee during that Congress.
          (3) The oversight section of such report shall 
        include a summary of the oversight plans submitted by 
        the committee pursuant to clause 2(d) of rule X, a 
        summary of the actions taken and recommendations made 
        with respect to each such plan, and a summary of any 
        additional oversight activities undertaken by that 
        committee, and any recommendations made or actions 
        taken thereon.

    The jurisdiction of the Committee on Ways and Means during 
the 105th Congress is provided in Rule X, clause 1(s), as 
follows:

        (s) Committee on Ways and Means.
          (1) Customs, collection districts, and ports of entry 
        and delivery.
          (2) Reciprocal trade agreements.
          (3) Revenue measures generally.
          (4) Revenue measures relating to the insular 
        possessions.
          (5) The bonded debt of the United States (subject to 
        the last sentence of clause 4(g) of this rule).
          (6) The deposit of public moneys.
          (7) Transportation of dutiable goods.
          (8) Tax exempt foundations and charitable trusts.
          (9) National social security, except (A) health care 
        and facilities programs that are supported from general 
        revenues as opposed to payroll deductions and (B) work 
        incentive programs.

    The general oversight responsibilities of committees are 
set forth in clause 2 of Rule X. The 104th Congress also added 
the requirement in clause 2(d) of Rule X that each standing 
committee submit its oversight plans for each Congress. The 
text of the Rule, in pertinent part, follows:

    2. (a) In order to assist the House in--
          (1) its analysis, appraisal, and evaluation of (A) 
        the application, administration, execution, and 
        effectiveness of the laws enacted by the Congress, or 
        (B) conditions and circumstances which may indicate the 
        necessity or desirability of enacting new or additional 
        legislation, and
          (2) its formulation, consideration, and enactment of 
        such modifications of or changes in those laws, and of 
        such additional legislation, as may be necessary or 
        appropriate, the various standing committees shall have 
        oversight responsibilities as provided in paragraph 
        (b).
          (b)(1) Each standing committee (other than the 
        Committee on Appropriations and the Committee on the 
        Budget) shall review and study, on a continuing basis, 
        the application, administration, execution, and 
        effectiveness of those laws, or parts of laws, the 
        subject matter of which is within the jurisdiction of 
        that committee and the organization and operation of 
        the Federal agencies and entities having 
        responsibilities in or for the administration and 
        execution thereof, in order to determine whether such 
        laws and the programs thereunder are being implemented 
        and carried out in accordance with the intent of the 
        Congress and whether such programs should be continued, 
        curtailed, or eliminated. In addition, each such 
        committee shall review and study any conditions or 
        circumstances which may indicate the necessity or 
        desirability of enacting new or additional legislation 
        within the jurisdiction of that committee (whether or 
        not any bill or resolution has been introduced with 
        respect thereto), and shall on a continuing basis 
        undertake future research and forecasting on matters 
        within the jurisdiction of that committee. Each such 
        committee having more than twenty members shall 
        establish an oversight subcommittee, or require its 
        subcommittees, if any, to conduct oversight in the area 
        of their respective jurisdiction, to assist in carrying 
        out its responsibilities under this subparagraph. The 
        establishment of oversight subcommittees shall in no 
        way limit the responsibility of the subcommittees with 
        legislative jurisdiction from carrying out their 
        oversight responsibilities.

           *       *       *       *       *       *       *

          (c) Each standing committee of the House shall have 
        the function of reviewing and studying on a continuing 
        basis the impact or probable impact of tax policies 
        affecting subjects within its jurisdiction as described 
        in clauses 1 and 3.
          (d)(1) Not later than February 15 of the first 
        session of a Congress, each standing committee of the 
        House shall, in a meeting that is open to the public 
        and with a quorum present, adopt its oversight plans 
        for that Congress. Such plans shall be submitted 
        simultaneously to the Committee on Government Reform 
        and Oversight and to the Committee on House Oversight. 
        In developing such plans each committee shall, to the 
        maximum extent feasible--
                  (A) consult with other committees of the 
                House that have jurisdiction over the same or 
                related laws, programs, or agencies within its 
                jurisdiction, with the objective of ensuring 
                that such laws, programs, or agencies are 
                reviewed in the same Congress and that there is 
                a maximum of coordination between such 
                committees in the conduct of such reviews; and 
                such plans shall include an explanation of what 
                steps have been and will be taken to ensure 
                such coordination and cooperation;
                  (B) give priority consideration to including 
                in its plans the review of those laws, 
                programs, or agencies operating under permanent 
                budget authority or permanent statutory 
                authority; and
                  (C) have a view toward ensuring that all 
                significant laws, programs, or agencies within 
                its jurisdictions are subject to review at 
                least once every ten years.
    To carry out its work during the 105th Congress, the 
Committee on Ways and Means had five standing Subcommittees, as 
follows:
          Subcommittee on Trade;
          Subcommittee on Oversight;
          Subcommittee on Health;
          Subcommittee on Social Security; and
          Subcommittee on Human Resources.

    The membership of the five Subcommittees of the Committee 
on Ways and Means in the 105th Congress is as follows:

                         Subcommittee on Trade

                  PHILIP M. CRANE, Illinois, Chairman                  

ROBERT T. MATSUI, California         BILL THOMAS, California
CHARLES B. RANGEL, New York          E. CLAY SHAW, Jr., Florida
RICHARD E. NEAL, Massachusetts       AMO HOUGHTON, New York
JIM McDERMOTT, Washington            DAVE CAMP, Michigan
MICHAEL R. McNULTY, New York         JIM RAMSTAD, Minnesota
WILLIAM J. JEFFERSON, Louisiana      JENNIFER DUNN, Washington
                                     WALLY HERGER, California
                                     JIM NUSSLE, Iowa

                       Subcommittee on Oversight

                NANCY L. JOHNSON, Connecticut, Chairman                

WILLIAM J. COYNE, Pennsylvania       ROB PORTMAN, Ohio
GERALD D. KLECZKA, Wisconsin         JIM RAMSTAD, Minnesota
MICHAEL R. McNULTY, New York         JENNIFER DUNN, Washington
JOHN S. TANNER, Tennessee            PHILIP S. ENGLISH, Pennsylvania
KAREN L. THURMAN, Florida            WES WATKINS, Oklahoma
                                     JERRY WELLER, Illinois
                                     KENNY HULSHOF, Missouri

                         Subcommittee on Health

                    BILL THOMAS, California, Chairman                  

FORTNEY PETE STARK, California       NANCY L. JOHNSON, Connecticut
BENJAMIN L. CARDIN, Maryland         JIM McCRERY, Louisiana
GERALD D. KLECZKA, Wisconsin         JOHN ENSIGN, Nevada
JOHN LEWIS, Georgia                  JON CHRISTENSEN, Nebraska
XAVIER BECERRA, California           PHILIP M. CRANE, Illinois
                                     AMO HOUGHTON, New York
                                     SAM JOHNSON, Texas

                    Subcommittee on Social Security

                    JIM BUNNING, Kentucky, Chairman                    

BARBARA B. KENNELLY, Connecticut     SAM JOHNSON, Texas
RICHARD E. NEAL, Massachusetts       MAC COLLINS, Georgia
SANDER M. LEVIN, Michigan            ROB PORTMAN, Ohio
WILLIAM J. JEFFERSON, Louisiana 1ISTENSEN, Nebraska
JOHN S. TANNER, Tennessee            J.D. HAYWORTH, Arizona
XAVIER BECERRA, California 2RRY WELLER, Illinois
                                     KENNY HULSHOF, Missouri

                    Subcommittee on Human Resources

                 E. CLAY SHAW, Jr., Florida, Chairman                  
                                                                       
DAVE CAMP, Michigan               SANDER M. LEVIN, Michigan            
JIM McCRERY, Louisiana            FORTNEY PETE STARK, California       
MAC COLLINS, Georgia              ROBERT T. MATSUI, California         
PHILIP S. ENGLISH, Pennsylvania   WILLIAM J. COYNE, Pennsylvania       
JOHN ENSIGN, Nevada               JIM McDERMOTT, Washington \1\        
J. D. HAYWORTH, Arizona           WILLIAM J. JEFFERSON, Louisiana \2\  
WES WATKINS, Oklahoma                                                  

----------
\1\ January 1, 1997 to April 9, 1997.
\2\ As of April 9, 1997.

    The Committee on Ways and Means submits its report on its 
legislative and oversight activities for the 105th Congress 
pursuant to the above stated provisions of the Rules of the 
House. Section I of the report describes the Committees' 
legislative activities, divided into seven sections as follows: 
Legislative Review of Budget Reconciliation: Balanced Budget 
Act of 1997 and Taxpayer Relief Act of 1997; Legislative Review 
of Tax, Trust Fund, and Pension Issues; Legislative Review of 
Trade Issues; Legislative Review of Health Issues; Legislative 
Review of Social Security Issues; Legislative Review of Human 
Resources Issues; and Legislative Review of Debt Issues.
    Section II of the report describes the Committees' 
oversight activities. It includes a copy of the Committee's 
Oversight Agenda, adopted in open session on February 12, 1997, 
along with a description of actions taken and recommendations 
made with respect to the oversight plan. The report then 
discusses additional Committee oversight activities, and any 
recommendations or actions taken as a result. Finally, the 
report includes three appendices with Committee information 
which was historically included in a separate committee 
publication (see WMCP: 103-29). Appendix I is an expanded 
discussion of the Jurisdiction of the Committee on Ways and 
Means along with a revised listing and explanation of blue slip 
resolutions and points of order under House Rule XXI 5(b), 
previously included in the Committee's ``Overview of the 
Federal Tax System'' (WMCP: 103-17). Appendix II is a brief 
Historical Note on the origins of the Committee; Appendix III 
is a Statistical Review of the Activities of the Committee on 
Ways and Means; and Appendix IV is a listing of the Chairmen 
and Membership of the Committee from the 1st-105th Congresses.




                                                 Union Calendar No. 473

105th Congress                                                   Report
 2d Session             HOUSE OF REPRESENTATIVES                105-832

=======================================================================




 
REPORT ON THE LEGISLATIVE AND OVERSIGHT ACTIVITIES OF THE COMMITTEE ON 
               WAYS AND MEANS DURING THE 105TH CONGRESS




    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                     I. Legislative Activity Review

             A. Legislative Review of Budget Reconciliation

                   1. the balanced budget act of 1997

    On February 11 and 12, March 5, 12, and 19, 1997, the 
Committee on Ways and Means held hearings on the President's 
Fiscal Year 1998 budget proposals.
    The Subcommittee on Health held hearings regarding 
provisions later included in the Balanced Budget Act of 1997 on 
February 13 and 25, March 4, 6, 11, 13, 20, April 8, 10, 17, 
24, and 29, 1997.
    The Subcommittee on Human Resources held a hearing on 
February 13, 1997, on human resources provisions in the 
President's Fiscal Year 1998 budget proposal. On April 24, 
1997, the Subcommittee on Human Resources held a hearing on 
unemployment compensation (UC) proposals.
    On May 21, 1997, the House approved H. Con. Res. 84, 
setting forth the Congressional budget for the United States 
Government for fiscal years, 1999, 2000, 2001, and 2002, and 
the House agreed to the conference report on H. Con. Res. 84 on 
June 5, 1997.
    On June 4, 1997, pursuant to H. Con. Res. 84, the 
Subcommittee on Health approved its budget reconciliation 
health recommendations. On June 5, 1997, the Subcommittee on 
Human Resources approved its budget reconciliation human 
resources recommendations. On June 9, 1997, the Committee 
approved its budget reconciliation health recommendations. On 
June 10, 1997, the Committee approved its budget reconciliation 
human resources recommendations. Both sets of recommendations 
were incorporated into H.R. 2015, the ``Balanced Budget Act of 
1997,'' as introduced by Budget Committee Chairman Rep. Kasich 
on June 24, 1997. On June 24, 1997, the House Committee on the 
Budget reported to the House H.R. 2015 (H. Rept. 105-149). On 
June 25, 1997, H.R. 2015 passed the House, as amended.
    On June 25, 1997, the bill, as amended, passed the Senate. 
On July 30, 1997, the conference report on H.R. 2015 (H. Rept. 
105-217) was filed. On July 30, 1997, the House and agreed to 
the conference report, and on July 31 it was agreed to in the 
Senate. On August 5, 1997, the President signed the bill into 
law (P.L. 105-33).
    The health provisions of H.R. 2015, as signed by the 
President, enact significant changes to the Medicare program 
and extend the life of the Medicare Part A Trust Fund to 2007. 
The provisions modernize Medicare payment systems; increase 
private health care options available to seniors; improve 
available preventive benefits; and give the Secretary of Health 
and Human Services new tools to fight Medicare waste, fraud, 
and abuse.
    The most significant change is the establishment of the 
Medicare+Choice program which expands private plan options 
available to seniors under the Medicare program to include 
preferred provider organizations (PPOs), provider-sponsored 
organizations (PSOs), and private fee-for-service plans.
    The provisions create a demonstration program for a limited 
number of beneficiaries to establish medical savings accounts 
(MSAs) in conjunction with a high deductible plan. Section 4006 
of the Balanced Budget Act authorized a limited number of 
Medicare MSAs under a demonstration beginning in 1999. MSAs 
will be limited to a demonstration: the initial year will be 
1999 but new enrollments will not be allowed after 2002 or 
after the number of enrollees reaches 390,000. Contributions to 
medical savings accounts will be exempt from taxes, as will 
account earnings. Withdrawals will likewise not be taxed nor be 
subject to penalties if they are used to pay unreimbursed 
enrollee medical expenses that are deductible under the 
Internal Revenue Code. However, qualified withdrawals cannot be 
made to pay insurance premiums other than for long-term care 
insurance, continuation coverage (such as COBRA), or coverage 
while an individual is receiving unemployment compensation. 
Non-qualified withdrawals will be included in the individual's 
gross income for tax purposes. They would also be subject to an 
additional 50% penalty to the extent they exceed the amount by 
which the account balance on December 31st of the prior year is 
greater than 60% of the MSA plan deductible for the year of 
withdrawal. The 50% penalty will not apply in cases of death or 
disability. Account balances at death will be subject to 
various tax treatments depending on their disposition.
    The provisions changed the method of calculating payments 
to Medicare health maintenance organizations (HMOs) and other 
private plans that contract with Medicare.Each county's 
Medicare+Choice payment rate is determined by taking the highest of 
three different rates: (1) a ``floor,'' or minimum payment rate; (2) a 
``minimum update'' rate; and (3) a ``blended'' rate calculated using a 
combination of county-specific data and national data. Gradually, the 
portion of the blended rate that is based on national data will 
increase so that in 2003, 50 percent will be based on county-specific 
data and 50 percent will be based on national data.
    The provisions include savings in the fee-for-service part 
of the program through changes in payment methods for 
physicians, hospitals, skilled nursing facilities, home health 
agencies, and other providers. In the case of physicians, these 
savings are achieved by providing for the use of a single 
(rather than three) conversion factors and limiting the growth 
in the annual update. Hospitals have their inpatient operating 
payment rate update frozen for FY 1998 and reductions to 
updates in outer years. Skilled nursing facilities, home health 
agencies, and rehabilitation hospitals move to prospective 
payment systems.
    The provisions enhance existing preventive benefits for 
Medicare beneficiaries including, annual mammograms for women 
at age 40; improving coverage of pap smears and pelvic exams; 
coverage of prostate and colorectal cancer screenings; new 
diabetes self-management programs and coverage of bone mass 
measurements.
    The provisions establish new penalties for fraud and abuse 
including a permanent exclusion from Medicare for any 
individual convicted of three health-care related offenses; 
refusal to enter into Medicare contracts with felons; exclusion 
of a health care business controlled by a family member of an 
individual guilty of fraud; new civil monetary penalties for 
individuals that contract with an excluded health care provider 
and for kickbacks.
    Finally, the provisions include the establishment of the 
National Bipartisan Commission on the Future of Medicare to 
address the long-term solvency of the Medicare program. The 
Commission's report is due to Congress in March, 1999.
    The human resources provisions included issues raised by 
the 1996 welfare reform legislation (P.L. 104-193). Here the 
Committee clarified work requirements and the number of hours 
certain workfare participants may work; created a new $3 
billion welfare-to-work grant program aimed at helping the most 
disadvantaged and least job ready welfare recipients obtain 
jobs; and provided continued SSI benefits for noncitizens 
affected by welfare reform eligibility restrictions. The 
proposal also clarified States' authority to set base periods 
for determining eligibility for unemployment benefits. Taken 
together, the Committee provisions fulfilled the spending and 
savings terms of the budget agreement and reformed several of 
the important social programs under the Committee's 
jurisdiction.
    The bill made minor changes in the proposed welfare-to-work 
program; applied specific workforce protection to welfare-to-
work participants rather than all TANF participants; added 
specific penalties on States failing to meet welfare work 
requirements, with exceptions for natural disasters and 
regional recessions; and dropped a House provision repealing 
the maintenance of effort requirement for State supplementation 
of SSI benefits.
    The bill made two significant changes in the SSI program. 
First, the Social Security Administration (SSA) was given an 
additional 6 months in which to conduct evaluations of children 
whose SSI eligibility may have been affected by the 1996 
welfare reform law. Second, Federal fees for administering 
State supplemental payments to SSI were increased from their 
former $5.00 level over a period of several years; added 
receipts were dedicated toward Social Security administrative 
expenses stemming from recent legislation. The legislation also 
included various technical amendments to the SSI program.
    Several unemployment compensation provisions were included 
in the bill. In addition to authorization for States to set UC 
base periods, the Act includes the following changes: raising 
the Federal unemployment account ceiling, thus preventing the 
transfer of surplus funds, other than a special distribution of 
$100 million, into State accounts after October 1, 2001; 
providing interest-free loans to States that meet certain 
forward-funding goals; authorizing program ``integrity'' funds; 
exempting election workers earning less than $1,000 per year 
and employees of religious schools operated by lay boards from 
participation in the program; and barring former inmates from 
eligibility for benefits resulting from ``unemployment'' due to 
release from prison work programs.
    The 1996 welfare reform law generally restricted 
eligibility for public benefits for noncitizens, including 
then-current recipients of SSI and Medicaid benefits. The 
Balanced Budget Act continued restrictions on eligibility for 
noncitizens arriving in the United States after August 1996 
(when the welfare reform law was enacted). However, the Act 
provided that all legal noncitizens receiving SSI in August 
1996 would remain eligible for SSI and Medicaid benefits; in 
addition, noncitizens who were lawfully residing in the United 
States in August 1996 would become eligible for SSI and 
Medicaid if they become disabled. Refugees (defined to include 
Cuban and Haitian entrants and certain Amerasian immigrants) 
would be eligible for SSI and Medicaid benefits for their first 
7 years in the U.S., instead of their first 5 years as allowed 
under the welfare reform law, allowing them time to naturalize 
without interruption in benefits.
    The tax provisions included in the conference report 
provided for increases in excise taxes imposed on tobacco 
products. Generally, the Act increases the current excise tax 
rates on all tobacco production, effective in two stages: 
January 1, 2000, and January 1, 2002. With respect to 
cigarettes, the current tobacco excise tax rate (24 cents per 
pack) would increase as follows: 10 cents on January 1, 2000, 
and 5 cents on January 1, 2002 (for a totalexcise tax rate of 
39 cents per pack).
    H.R. 2015 also contained provisions to enhance enforcement 
by authorizing appropriations to the Treasury for improved 
application of the earned income credit.
    The conference report also included a permanent increase in 
the public debt limit to $5.95 trillion.

                     2. TAXPAYER RELIEF ACT OF 1997

    On February 11 and 12, March 5, 12, and 19, 1997, the 
Committee on Ways and Means held hearings on the President's 
Fiscal Year 1998 budget proposals.
    On May 21, 1997, the House approved H. Con. Res. 84, 
setting forth the Congressional budget for the United States 
Government for fiscal years, 1999, 2000, 2001, and 2002, and 
the House agreed to the conference report on H. Con. Res. 84 on 
June 5, 1997.
    On June 11 and 12, 1997, pursuant to H. Con. Res. 84, the 
Committee held a markup of budget reconciliation revenue 
recommendations. These recommendations were incorporated into 
H.R. 2014, the ``Taxpayer Relief Act of 1997,'' as introduced 
by Budget Committee Chairman Rep. Kasich on June 24, 1997. On 
June 24, 1997, the House Committee on the Budget reported to 
the House H.R. 2014 (H. Rept. 105-148). On June 26, 1997, H.R. 
2014 passed the House, as amended.
    On June 27, 1997, the bill, as amended, passed the Senate. 
On July 30, 1997, the conference report on H.R. 2014 (H. Rept. 
105-220) was filed. On July 31, 1997, the House and the Senate 
agreed to the conference report, and on August 5, 1997, the 
President signed the bill into law (P.L. 105-34).
    In summary, H.R. 2014, the ``Taxpayer Relief Act of 1997,'' 
as signed into law, included the following provisions: a tax 
credit for children under age 17, expansion of the definition 
of high-risk individuals with respect to tax-exempt State-
sponsored organizations providing health coverage, the HOPE tax 
credit and Lifetime Learning tax credit, a deduction for 
student loan interest, penalty-free withdrawals from IRAs for 
higher education expenses, special rules for qualified State 
tuition programs and education IRAs, extension of the exclusion 
for employer-provided educational assistance, modification of 
the $150 million limit on qualified 501(c)(3) bonds, expansion 
of the arbitrage rebate exception for certain bonds, an 
enhanced deduction for corporate contributions of computer 
technology and equipment, special rules for cancellation of 
certain student loans, a tax credit for holders of qualified 
zone academy bonds, expansion of Individual Retirement 
Arrangements, reduction in the maximum rate of tax on net 
capital gains of individuals, an exclusion of gain on sale of 
principal residence, rollover of gain from sale of certain 
small business stock, repeal of the Alternative Minimum Tax for 
small businesses, modification of the AMT depreciation 
adjustment, repeal of the AMT installment method adjustment for 
farmers, an increase in the estate and gift tax unified credit 
and indexing of certain other estate and gift tax provisions, 
an estate tax exclusion for qualified family-owned businesses 
and other estate and gift tax changes, extension of certain 
expired tax credits, tax incentives for the District of 
Columbia, and a Welfare-to-Work tax credit. The Act also 
contained various miscellaneous provisions (including those 
relating to excise taxes, disaster relief, employment taxes, 
small businesses, environmental remediation costs, and 
empowerment zones and enterprise communities), revenue increase 
provisions (including those relating to financial products, 
corporate organizations and reorganizations, administration of 
the tax laws, excise and employment taxes, tax-exempt 
organizations, international activities, partnerships, and 
pension and employee benefits), and simplification provisions 
(including those relating to international operations, 
individuals and businesses, estates, gifts, and trusts, excise 
taxes, and pension and employee benefits), and technical 
corrections to prior legislation.
    The Line Item Veto Act (prior to the U.S. Supreme Court's 
determination of unconstitutionality) permitted the President 
to cancel certain tax code amendments that benefit a limited 
number of taxpayers. As described in section 5 below, the 
President exercised this authority with respect to two tax code 
amendments in H.R. 2014.
    The legislation repeals the $150 million limit for hospital 
bonds issued after the date of enactment to finance capital 
expenditures incurred after the date of enactment. Because this 
provision applies only to bonds issued with respect to capital 
expenditures incurred after the date of enactment, the $150 
million limit will continue to govern issuance of other non-
hospital qualified 501(c)(3) bonds (e.g., refunding bonds with 
respect to capital expenditures incurred before the date of 
enactment or new-money bonds for capital expenditures incurred 
before that date). Thus, the Congress understood that bond 
issuers will continue to need Treasury Department guidance on 
the application of this limit in the future. The provision was 
effective for bonds issued after the date of enactment to 
finance capital expenditures incurred after such date.
    The legislation also has a provision that provides that an 
organization does not fail to be treated as organized and 
operated exclusively for a charitable purpose for purposes of 
Code section 501(c)(3) solely because a hospital which is owned 
and operated by such organization participates in a provider-
sponsored organization (``PSO'') (as defined in section 
1845(a)(1) of the Social Security Act), whether or not such PSO 
is exempt from tax. Thus, participation by a hospital in a PSO 
(whether taxable or tax-exempt) is deemed to satisfy the first 
part of the inquiry under current IRS ruling practice. The 
provision does notchange present-law restrictions on private 
inurement and private benefit. However, the provision provides that any 
person with a material financial interest in such a PSO shall be 
treated as a private shareholder or individual with respect to the 
hospital for purposes of applying the private inurement prohibition in 
Code section 501(c)(3). Accordingly, the facts and circumstances of 
each PSO arrangement are evaluated to determine whether the arrangement 
entails impermissible private inurement or more than incidental private 
benefit (e.g., where there is a disproportionate allocation of profits 
and losses to the non-exempt partners, the tax-exempt partner makes 
loans to the joint venture that are commercially unreasonable, the tax-
exempt partner provides property or services to the joint venture at 
less than fair market value, or a non-exempt partner receives more than 
reasonable compensation for the sale of property or services to the 
joint venture). The provision does not change present-law restrictions 
on lobbying and political activities. In addition, the restrictions of 
Code section 501(m) on the provision of commercial-type insurance 
continue to apply. The provision was effective on the date of 
enactment.
    The legislation requires that all Medicare providers supply 
the Secretary of HHS with the employer identification number 
(``EIN'') of each disclosing entity, each person with an 
ownership or control interest, and any subcontractor in which 
the entity has a direct or indirect 5 percent or more ownership 
interest. The Secretary of HHS is required to transmit to the 
Secretary of the Treasury the EIN's received, and the Secretary 
of the Treasury is directed to verify or correct the EINs. The 
Secretary of HHS is to reimburse the Secretary of the Treasury 
for the costs incurred in performing the verification and 
correction. The provision is effective 90 days after the 
Secretary of HHS submits to the Congress a report on the steps 
taken to ensure the confidentiality of social security account 
numbers required to be provided to the Secretary of HHS.
    The legislation permanently extends the Medicare disclosure 
provisions of section 6103 of the Internal Revenue Code of 
1986, which permit the disclosure of taxpayer filing status and 
identity information for the purpose of verifying the 
employment status of Medicare beneficiaries and the spouse of a 
Medicare beneficiary, effective on the date of enactment.
    This proposal included a provision to reauthorize title V 
of the Trade Act of 1974, as amended, for two years through May 
31, 1999. Title V contains the provisions on the Generalized 
System of Preferences (``GSP'').

      B. Legislative Review of Tax, Trust Fund, and Pension Issues

                     1. balanced budget act of 1997

    For a discussion of tax provisions in the Balanced Budget 
Act of 1997, see I.A.1. above.

                     2. taxpayer relief act of 1997

    For a discussion of tax provisions in the Taxpayer Relief 
Act of 1997, see I.A.2. above.

    3. internal revenue service restructuring and reform act of 1997

    On October 21, 1997, H.R. 2676, the ``Internal Revenue 
Service Restructuring and Reform Act of 1997,'' was introduced 
by Committee Chairman Archer. On October 31, 1997, the 
Committee reported to the House H.R. 2676, as amended (H. Rept. 
105-364, Pt. 1). On November 5, 1997, H.R. 2676 passed the 
House, as amended.
    On April 22, 1998, the Senate Committee on Finance reported 
H.R. 2676, as amended. On May 7, 1998, the bill, as amended, 
passed the Senate.
    On June 24, 1998, the conference report on H.R. 2676 (H. 
Rept. 105-599) was filed. On June 25, 1998, the House agreed to 
the conference report. On July 9, 1998, the Senate agreed to 
the conference report and on July 22, 1998, the President 
signed the bill into law (P.L. 105-206).
    In summary, H.R. 2676, the ``Internal Revenue Service 
Restructuring and Reform Act of 1998,'' as signed into law, 
reorganized the structure and management of the Internal 
Revenue Service, established an IRS Oversight Board; prohibited 
executive branch influence over taxpayer audits; provided IRS 
with personnel flexibilities; promoted electronic filing of tax 
and information returns; added numerous taxpayer protections 
and rights, including a shift in the burden of proof, an 
expansion of authority to award costs and fees to taxpayers, 
civil damages for collection actions, civil actions for release 
of erroneous liens, relief for innocent spouses, a suspension 
of the refund statute of limitations during periods of 
disability, elimination of the interest rate differential 
during overlapping periods of tax underpayment and overpayment, 
an increase in the overpayment interest rate for non-corporate 
taxpayers, mitigation of the failure to pay penalty for 
individuals with installment payment agreements, mitigation of 
the failure to deposit penalty for payroll taxes, suspension of 
interest and penalties if the IRS fails to notify taxpayers of 
liabilities within a specified time, procedural requirements 
for the imposition of penalties and additions to tax, improved 
disclosure relating to interest computations, joint filing 
liabilities and relief, and other matters, abatement of 
interest on underpayments for taxpayers in Presidentially 
declared disaster areas, additional due process, exemptions, 
and limitations in collection actions, uniform confidentiality 
privilege rules, limitations on financial status 
audittechniques, software trade secrets protection, revised procedures 
relating to summonses, expanded ability for taxpayers to make offers in 
compromise, guaranteed availability of installment agreements, low-
income taxpayer clinics, administrative modifications, procedures for 
offsetting past-due legally enforceable state income tax obligations 
against overpayments, and several studies; enhanced congressional 
accountability for the IRS, including a review of requests for GAO 
investigations, joint congressional review and coordinated oversight 
reports, and tax law complexity analyses; eliminated the 18 month 
holding period for capital gains; expanded deductibility of meals 
provided for the convenience of the employer; made technical 
corrections to prior tax and other legislation; and included revenue 
offsets relating to the deduction for vacation and severance pay, 
freezing the grandfathered status of paired-share REITs, making certain 
trade receivables ineligible for mark-to-market treatment, and 
excluding minimum required distributions in determining eligibility to 
make a Roth IRA conversion.

     4. airport and airway trust fund tax reinstatement act of 1997

    On February 11, 1997, H.R. 668, the ``Airport and Airway 
Trust Fund Tax Reinstatement Act of 1997,'' was introduced by 
Committee Chairman Archer. On February 13, 1997, the Committee 
reported to the House H.R. 668 (H. Rept. 105-5). On February 
26, 1997, H.R. 668 passed the House. On February 27, 1997, H.R. 
668 passed the Senate, and on February 28, 1997, the President 
signed the bill into law (P.L. 105-2).
    The Airport and Airway Trust Fund Tax Reinstatement Act of 
1997 (H.R. 668), reinstated temporarily the Airport and Airway 
Trust Fund excise taxes which expired after December 31, 1996, 
during the period March 7, 1997 (seven days after date of 
enactment) through September 30, 1997. The Act also authorized 
transfer of excise tax receipts to the Trust Fund, while 
modifying the Treasury Department's excise tax deposit 
regulations.

                            5. highway bill

    On September 4, 1997, H.R. 2400, the ``Transportation 
Equity Act for the 21st Century,'' was introduced by 
Representative Shuster. On March 27, 1998, the Committee 
reported to the House H.R. 2400, as amended to include revenue 
and trust fund provisions (H. Rept. 105-467, Part III). On 
April 1, 1998, H.R. 2400 passed the House, as amended.
    On April 2, 1998, the Senate passed the bill with amendment 
consisting of the text of S. 1173, as amended.
    On May 22, 1998, the House and Senate agreed to the 
conference report (H. Rept. 105-550), and on June 9, 1998, the 
President signed the bill into law (P.L. 105-178).
    In summary, the financing title (Title IX) of H.R. 2400, 
the ``Transportation Equity Act for the 21st Century,'' as 
signed into law, provided for a 6-year extension of current law 
Highway Trust Fund motor fuel taxes, as well as excise taxes on 
truck tires and retail sales on trucks and trailers and annual 
use taxes on trucks. The Act also contained the following 
revenue provisions: a 7-year extension and modification of 
alcohol fuels tax benefits; an extension and modifications of 
the Highway Trust Fund and expenditure authority; repeal of the 
National Recreational Trails Trust Fund; extension of the 
Aquatic Resources Trust Fund and expenditure authority; a 
partial transfer of General Fund taxes on motorboat and small 
engine fuels to the Aquatic Resources Trust Fund; delay in dyed 
fuel mandate for registered terminals; accelerated sunset of 
the 1.25 cents-per-gallon tax on railroad diesel fuel; 
expansion of qualified transportation fringe benefits and non-
Amtrak state refund provisions; and simplification of fuel tax 
refund procedures, as well as technical corrections.
    Subtitle D of Title VIII of H.R. 2400 contains budget 
offset provisions within the Committee's jurisdiction amendment 
Title XX of the Social Security Act (Social Services Block 
Grant program) to reduce funding levels from $2.38 billion to 
$1.7 billion for each of fiscal years 2001 and 2002, and from 
$2.8 billion to $1.7 billion in fiscal years 2003 and 
thereafter; and beginning in fiscal year 2001, lowering from no 
more than 10 percent, to no more than 4.25 percent, the portion 
of the Temporary Assistance for Needy Families block grant that 
States may transfer to Title XX.

                         6. line item veto bill

    On August 11, 1997, the President issued a message, 
pursuant to the Line Item Veto Act (P.L. 104-130), canceling 
two limited tax benefits identified in H.R. 2014, the Taxpayer 
Relief Act of 1998: sections 968, relating to recognition of 
gain on certain farmers' cooperatives, and section 1175, 
relating to a one year active financing exception from Subpart 
F. On September 3, 1997, the Presidential message was referred 
to the Committee on Ways and Means. On September 9, 1997, a 
disapproval bill, H.R. 2444, was introduced and referred to the 
Committee on Ways and Means.
    On September 23, 1997, H.R. 2513, containing two provisions 
intended to replace sections 968 and 1175 that were the subject 
of the line item veto, was introduced by Committee Chairman 
Archer. On October 9, 1997, the Committee reported to the House 
H.R. 2513, as amended (H. Rept. 105-318, Part I). On November 
8, 1997, H.R. 2513 passed the House, as amended. A similar 
measure, H.R. 2444, was laid on the table without objection.
    On June 25, 1998, the U.S. Supreme Court declared 
unconstitutional the Line Item Veto Act's cancellation 
provisions.
    On October 21, 1998, the Senate passed H.R. 2513, with an 
amendment to provide tax-free treatment of reward monies 
donated to the victims of unabomber Theodore Kaczynski.

        7. educational savings and school excellence act of 1998

    On October 9, 1997, H.R. 2646, the ``Educational Savings 
and School Excellence Act of 1998,'' was introduced by 
Committee Chairman Archer. On October 21, 1997, the Committee 
reported to the House H.R. 2646, as amended (H. Rept. 105-332). 
On October 23, 1997, H.R. 2646 passed the House, as amended.
    On April 23, 1998, H.R. 2646 passed the Senate with an 
amendment. On June 18, 1998, the House agreed to the conference 
report (H. Rept. 105-577). On June 24, 1998, the Senate agreed 
to the conference report. On July 21, 1998, the President 
vetoed the bill and the veto message was referred to the 
Committee on Ways and Means.
    As approved by the House and Senate, the conference report 
on H.R. 2646, the ``Education Savings and School Excellence Act 
of 1998,'' would have allowed tax-free expenditures from 
education individual retirement accounts (IRAs) for qualified 
elementary and secondary school expenses (as well as higher 
education costs). In addition, the conference agreement would 
have increased the maximum annual amount of contributions to 
education IRAs to $2,000 (from $500) beginning 1999 and through 
2002. The conference report also included the following 
provisions: an income tax exclusion for withdrawals from 
qualified state tuition programs and, after the year 2005, 
private pre-paid tuition programs; an extension of the 
employer-provided education assistance exclusion under section 
127; an increase in arbitrage rebate exception for public 
school bonds; tax-free treatment (under section 117) of certain 
health professions scholarships; technical corrections; and a 
clarification of the rules for deducting accrued vacation and 
severance pay by overturning the result in Schmidt Baking Co. 
Inc.

                  8. taxpayer browsing protection act

    On April 8, 1997, H.R. 1226, the ``Taxpayer Browsing 
Protection Act,'' was introduced by Committee Chairman Archer. 
On April 14, 1997, the Committee reported to the House H.R. 
1226, as amended (H. Rept. 105-51). On April 15, 1997, H.R. 
1226 passed the House, as amended.
    On July 23, 1997, the Senate passed H.R. 1226 without 
amendment and on August 5, 1997, the President signed the bill 
into law (P.L. 105-35).

                     9. taxpayer relief act of 1998

    On January 28, and on February 4 and 12, 1998, the 
Committee on Ways and Means held hearings on reducing the tax 
burden. The Committee held hearings on February 25, 1998, on 
the revenue provisions in the President's Fiscal Year 1998 
budget proposal.
    On September 16, 1998, H.R. 4579, the ``Taxpayer Relief Act 
of 1998,'' was introduced by Committee Chairman Archer. On 
September 23, 1998, the Committee reported H.R. 4579, as 
amended (H. Rept. 105-739). On September 26, 1998, H.R. 4579 
passed the House, as amended. No action taken in the Senate.
    In summary, H.R. 4579, the ``Taxpayer Relief Act of 1998,'' 
as passed by the House, included the following provisions: 
marriage tax penalty relief by increasing the standard 
deduction for married taxpayers, a partial exclusion from 
income for interest and dividends, more favorable treatment of 
personal credits under the individual minimum tax, an increase 
in the social security earnings limit, expansion of the 
exclusion of gain on the sale of a principal residence for 
military and foreign service personnel, expansion of the 
``qualified prepaid tuition'' program to private colleges and 
universities, and expansion of arbitrage rebate rules for tax-
exempt bonds issued to finance public school construction. The 
bill included a package of small business and farmer tax relief 
provisions: acceleration of the increased $1 million exemption 
from the estate and gift tax, acceleration of the increase in 
the deduction for health insurance expenses of self-employed 
individuals, acceleration of the increase in expensing for 
small businesses, permanent extension of income averaging for 
farmers, a special 5-year net operating loss carryback for 
farmers, special rules dealing with production flexibility 
contract payments for farmers, and designation of 20 ``renewal 
communities'' which would be entitled to special tax 
incentives. The bill also included an extension of the 
following expiring tax provisions: Research and Experimentation 
Tax Credit, Work Opportunity Tax Credit, Welfare-to-Work tax 
credit, deduction for contributions of appreciated stock to 
private foundations, exceptions from Subpart F for certain 
active financing income, and the Generalized System of 
Preferences trade program. The bill also included a provision 
tightening the tax treatment of certain deductible liquidating 
distributions of regulated investment companies (RICs) and Real 
Estate Investment Trusts (REITs).

                      10. expiring tax provisions

    On October 8, 1998, Chairman Archer introduced H.R. 4738, a 
bill to extend certain expiring tax and trade provisions. On 
October 12, 1998, the Committee reported to the House H.R. 
4738, as amended (H. Rept. 105-817). On October 12, 1998, H.R. 
4738 passed the House, as amended.
    The Senate received H.R. 4738 on October 21, 1998, but took 
no formal action on thebill. However, several of the tax 
provisions in H.R. 4738 were included in H.R. 4328, the ``Omnibus 
Consolidated and Emergency Supplemental Appropriations Act, 1999,'' 
which passed the House on October 20, 1998, and the Senate on the 
following day. On October 21, 1998, the President signed the bill into 
law ( P.L. 105-277).
    The Tax and Trade Relief Extension Act of 1998, enacted as 
part of H.R. 4328, extended the following expiring provisions 
until June 30, 1999: the Research Tax Credit, the Work 
Opportunity Tax Credit, the Welfare to Work Credit, and the 
Generalized System of Preferences trade program. It also 
permanently extended income averaging for farmers and the 
deduction of gifts of appreciated stock to private foundations. 
The bill modified the present-law temporary exceptions from 
Subpart F for income that is derived in the active conduct of a 
banking, financing, insurance or similar business. These 
exceptions (as modified) would be applicable only for taxable 
years beginning in 1999. Other tax provisions included special 
rules dealing with farm production flexibility contract 
payments, an increase in the deduction for health insurance 
expenses for the self-employed, an increase in State volume cap 
limits on private activity tax-exempt bonds, a provision to 
allow States a window to modify State agreements to allow an 
exemption for students employed by public schools from paying 
Social Security taxes and a waiver of AMT limits on 
nonrefundable credits during 1998. The bill also featured other 
tax provisions, revenue offsets, and technical corrections to 
prior legislation.

                       11. additional tax matters

a. Tax Code Termination Act

    On January 27, 1998, H.R. 3097, the ``Tax Code Termination 
Act,'' was introduced by Representative Largent. On June 17, 
1998, the bill passed the House as amended. The Committee took 
no action on the bill. On June 18, 1998, H.R. 3097 was received 
in the Senate and referred to the Committee on Finance. No 
further action taken.
    H.R. 3097, the ``Tax Code Termination Act,'' as passed by 
the House, generally would have repealed the Internal Revenue 
Code of 1986 (other than the provisions relating to self-
employment income, the Federal Insurance Contributions Act, and 
the Railroad Retirement Tax Act) effective December 31, 2002, 
and declared that any new Federal tax system should be approved 
by Congress in its final form no later than July 4, 2002.

b. The Leaking Underground Storage Tank Trust Fund Amendments Act of 
        1997

    On February 11, 1997, H.R. 688, the ``Leaking Underground 
Storage Tank Trust Fund Amendments Act of 1997,'' was 
introduced by Representative Schaefer. The Committee was 
discharged from further consideration on April 17, 1997. On 
April 23, 1997, H.R. 688 passed the House as amended. The bill 
was received in the Senate and referred to the Committee on 
Environment and Public Works on April 24, 1997. No further 
action taken.
    As passed by the House of Representatives, the revenue 
title (Title II) to H.R. 668, the ``Leaking Underground Storage 
Tank Trust Fund Amendments Act of 1997'' would conform the 
expenditure purposes of the Leaking Underground Storage Tank 
Trust Fund under Section 9508 of the Internal Revenue Code.

c. The Internet Tax Freedom Bill

    On June 22, 1998, H.R. 4105, the ``Internet Tax Freedom 
Bill,'' was introduced by Representative Cox. On June 23, 1998, 
the bill was called up by the House under suspension of the 
rules and passed by voice vote. H.R. 4105 was received in the 
Senate and was placed on the Senate Legislative Calender under 
General Orders. On October 8, 1998, the Senate passed S. 442, 
its version of the ``Internet Tax Freedom Act''. H.R. 4328, the 
Omnibus Consolidated and Emergency Supplemental Appropriations 
Act, 1999, as enacted (P.L. 105-277), included provisions 
similar to S. 442.
    The ``Internet Tax Freedom Act,'' as signed into law by the 
President, generally imposed a three-year moratorium on taxes 
on Internet access and multiple or discriminatory taxes on 
electronic commerce. The Act created an Advisory Commission on 
Electronic Commerce to examine Federal, State and local taxes 
related to electronic Commerce, and it also included 
declarations that the Internet should be free of new Federal 
taxes and that the Internet should be free of foreign tariffs, 
trade barriers, and other restrictions.

d. Ricky Ray Hemophilia Relief Fund Act

    On March 11, 1997, H.R. 1023, the ``Ricky Ray Hemophilia 
Relief Fund Act,'' was introduced by Representative Goss. A 
mark-up session was held on April 22, 1998, and the bill was 
reported to the House by voice vote (H. Rept. 105-465, Part 
II). H.R. 1023 was passed by the House under suspension of the 
rules on May 19, 1998. On October 21, 1998, the Senate passed 
H.R. 1023, and on November 12, 1998, the President signed the 
bill into law. (P.L. 105-304).
    H.R. 1023, the ``Ricky Ray Hemophilia Relief Fund Act,'' as 
signed by the President, included a provision stating that 
payments received pursuant to the Act are treated as damages on 
account of personal physical injuries or physical sickness and 
therefore excluded from income.

                 C. Legislative Review of Trade Issues

            1. extension of fast track negotiating authority

    ``Fast track'' implementing procedures, which were first 
enacted in 1974, have expired with respect to new trade 
agreements entered into after the Uruguay Round. These 
procedures permitted the President to seek implementation for 
trade agreements under a special approval process.
    On October 7, 1997, Chairman Archer, on behalf of himself, 
Subcommittee Chairman Crane, and Representative Dreier, 
introduced H.R. 2621, the Reciprocal Trade Agreement Authority 
Act of 1997. The bill was referred to the Committee on Ways and 
Means and in addition the Committee on Rules.
    The Subcommittee on Trade held a hearing on fast track 
issues on September 30, 1997, and received testimony from the 
Administration, Members of Congress, and private sector 
witnesses.
    On October 8, 1997, the Committee on Ways and Means met to 
consider H.R. 2621. On October 23, 1997, the Committee reported 
the bill to the House (H. Rept. 105-341, Pt. 1).
    The legislation would have put in place special procedures 
for implementing trade agreements entered into until October 1, 
2001, with an extension available. The procedures would have 
been similar to the expired provisions, with modifications to 
clarify and narrow their application so that they do not apply 
to provisions that are not directly related to the trade 
negotiating objectives established by Congress and are 
``extraneous'' to implement the concluded trade agreement.
    As reported by the Committee, H.R. 2621 would have 
specified that bills implementing trade agreements may qualify 
for fast track procedures only if those bills consist solely of 
provisions directly related to principal trade negotiating 
objectives set forth in the bill if necessary for the operation 
or implementation of U.S. rights or obligations under the trade 
agreement; provisions that define or clarify, or provisions 
that are related to, the operation and effect of the provisions 
of the trade agreement; provisions to provide adjustment 
assistance to workers or firms adversely affected by trade; 
provisions approving the agreement and statement of 
administrative action; and provisions necessary to comply with 
budget offset requirements. The bill would have provided fast 
track authority to address certain aspects of foreign policies 
and practices regarding labor, the environment, and other 
matters that are directly related to trade: to ensure that 
foreign policies and practices do not discriminate or serve as 
disguised barriers to trade; and to ensure that foreign 
governments do not derogate from or waive existing domestic 
measures to gain competitive advantage in international trade 
or investment.
    H.R. 2621 would have also provided authority to the 
President to negotiate certain tariff reductions without the 
need for implementation. The bill would have established a 
number of requirements that the President consult with Congress 
and require the President, at least 90 days before entering 
into an agreement, to notify Congress of his intent to enter 
into the agreement. The bill would have added a new requirement 
that the President, within 60 days of signing an agreement, 
submit to Congress a preliminary list of existing laws that he 
considers would be required to bring the United States into 
compliance with the agreement. Most of the remaining provisions 
were identical to the expired law.
    On September 24, 1998, the House considered H.R. 2621, as 
amended by a Manager's Amendment offered by Chairman Archer and 
made in order under the rule (H. Res. 553) adopted on September 
24. The bill, as amended under the rule adopted September 24, 
1998, would have greatly expanded consultation requirements 
with Congress, including the Committee on Agriculture; 
prohibited the use of tariff proclamation authority for import 
sensitive products; and extended Trade Adjustment Assistance 
programs through 1999. The bill, as amended, failed passage in 
the House on September 25, 1998.

                      2. bilateral trade relations

a. Trade relations with sub-Saharan Africa

    In 1994, Congress passed the Uruguay Round Agreements Act, 
which contained a provision in section 134 requiring the 
President to produce a comprehensive trade and development 
policy for the countries of Africa. The second of the 
President's five reports was submitted to Congress on February 
18, 1997. The President's report set forth a policy framework 
structured around five basic objectives, including trade 
liberalization and promotion, investment liberalization and 
promotion, development of the private sector, infrastructure 
enhancement, and economic reform.
    On April 24, 1997, H.R. 1432, the African Growth and 
Opportunity Act, was introduced by Subcommittee Chairman Crane 
and Representatives Rangel, McDermott, Houghton, Jefferson, 
McNulty, et alia, to authorize a new trade and investment 
policy for sub-Saharan Africa. The bill would have called for 
the designation of countries in sub-Saharan Africa pursuing 
market based economic reform to participate in benefits of the 
bill. In the immediate term, H.R. 1432 would have offered 
enhanced benefits under the Generalized System of Preferences 
(GSP) to sub-Saharan African countries identified to 
participate in the bill. In addition, the legislation would 
have called for the creation of a United States-Sub-Saharan 
Africa Trade and Economic Cooperation Forum to provide a 
regular opportunity for the discussion of trade liberalization 
among the eligible countries.The bill would also have set as a 
policy objective the creation of a United States-Sub-Saharan Africa 
Free Trade Area. H.R. 1432 was referred to the Committee on 
International Relations, and in addition to the Committees on Ways and 
Means, and Banking and Financial Services.
    On April 29, 1997, the Subcommittee on Trade held a hearing 
on H.R. 1432 and ways to develop closer trade relations with 
the countries of sub-Saharan Africa. Testimony was received 
from the Speaker of the House, the United States Trade 
Representative, representatives of the African diplomatic 
corps, and representatives of the U.S. and African private 
sectors.
    On May 2, 1997, Subcommittee Chairman Crane wrote to 
Chairman Gilman of the Committee on International Relations, 
asking him to take action on the provisions in H.R. 1432 in his 
Committee's jurisdiction at his earliest opportunity. On June 
25, 1997, the Committee on International Relations held a mark 
up of H.R. 1432 and ordered the bill favorably reported out of 
Committee (H. Rept. 105-423, Part I).
    On September 4, 1997, the International Trade Commission 
submitted a report to the Committee, pursuant to Chairman 
Archer's request under section 332(g) of the Tariff Act of 
1930, on the likely impact of providing quota-free and duty-
free entry to textiles and apparel from sub-Saharan Africa. The 
report found that removal of quotas and duties would have a 
``negligible'' effect on trade, as well as on U.S. producers 
and workers.
    The Subcommittee on Trade considered H.R. 1432 on October 
23, 1997, and favorably reported the bill to the Full Committee 
with a technical amendment.
    On December 23, 1997, the President submitted his third 
report pursuant to section 134 of the Uruguay Round Agreements 
Act. The President's report indicated the Administration's 
strong support for the passage of the African Growth and 
Opportunity Act. In addition, it described the five major 
components of the Administration's Partnership for Economic 
Growth and Opportunity in Africa: enhanced trade benefits to 
increase U.S.-African trade and investment flows; technical 
assistance; enhanced dialogue with African countries; financing 
and debt relief; and continued U.S. leadership in multilateral 
fora to support private sector development, trade development, 
and institutional capacity building in African countries.
    On February 25, 1998, H.R. 1432 was ordered favorably 
reported by the Committee with amendments to guard against the 
unlawful transshipment of textile and apparel goods through 
sub-Saharan Africa, and reported to the House on March 2, 1998 
(H. Rept. 105-423, Pt. 2).
    The bill was passed by the House of Representatives on 
March 11, 1998, by a vote of 233 to 186.
    On July 17, 1998, the General Accounting Office submitted a 
report requested by Subcommittee Chairman Crane on the possible 
reactions of major U.S. textile and apparel importers to 
different approaches for granting trade preferences to sub-
Saharan African countries. The report found that companies 
expressed the greatest interest in expanding trade with sub-
Saharan Africa under the benefits provided in the House-passed 
version of H.R. 1432.
    No further action was taken on H.R. 1432.
    Title I of S. 2400, as reported by the Senate Committee on 
Finance on July 21, 1998 (S. Rpt. 105-280), contained a 
subtitle called the ``African Growth and Opportunity Act.'' The 
trade provisions in the Senate version differed from the House 
language by imposing a requirement that imports of textile and 
apparel products from sub-Saharan Africa qualifying for duty 
free and quota free entry under amendments proposed to the 
Generalized System of Preferences be made from fabric of U.S. 
origin. No further action was taken on S. 2400.

b. Parity for Caribbean Basin Initiative countries

    On June 26, 1997, the House passed H.R. 2014, the Taxpayer 
Relief Act of 1997, as amended, which contained the United 
States-Caribbean Basin Trade Partnership Act in Title IX, 
Subtitle H, providing for the extension of NAFTA parity 
benefits to Caribbean Basin Initiative countries. The Senate 
version of the bill, however, did not contain language on this 
subject, and no provision was included in the conference report 
(H. Rept. 105-220).
    On October 9, 1997, Chairman Archer introduced H.R. 2644, 
the United States Caribbean Basin Trade Partnership Act. The 
bill was referred to the Committee on Ways and Means. The bill 
would have amended the Caribbean Basin Economic Recovery Act 
to: 1) promote the growth of free enterprise and economic 
opportunity in the Caribbean Basin region; 2) increase trade 
and investment between the Caribbean region and the United 
States; and, encourage the participation of these countries in 
the Free Trade Agreement of the Americas or a similar trade 
agreement.
    On October 31, 1997, the Committee reported H.R. 2644 to 
the House (H. Rept. 105-365). H.R. 2644 failed passage in the 
House on November 4, 1997.
    Title I of S. 2400, as reported by the Senate Committee on 
Finance on July 21, 1998 (S. Rpt. 105-280), contained a 
subtitle called the ``United States-Caribbean Trade Enhancement 
Act.'' One of the most significant differences between H.R. 
2644 and theSenate Caribbean trade bill was that the Senate 
bill required that imports of textile and apparel products from 
beneficiary countries be made from fabric of U.S. origin in order to 
qualify for trade benefits. No further action was taken on S. 2400.

c. Trade relations with the People's Republic of China, including 
        normal trade relations

    On May 29, 1997, the President announced his decision to 
waive, for another year, the freedom-of-emigration requirements 
in Title IV of the Trade Act of 1974 with respect to China, 
thereby granting China normal trade relations (NTR) between 
July 1997 and July 1998.3
---------------------------------------------------------------------------
    \3\ This report uses the terminology ``normal trade relations,'' or 
``NTR,'' to refer to ``most favored nation'' treatment, reflecting a 
terminology change in H.R. 2676, signed into law on July 22, 1998 (P.L. 
105-206).
---------------------------------------------------------------------------
    On June 17, 1997, the Subcommittee on Trade held a hearing 
on the question of renewing China's NTR status. At this 
hearing, Members of Congress, as well as representatives of the 
Administration and the business community, expressed their 
views regarding U.S.-China trade relations.
    On June 3, 1997, H. J. Res. 79, a joint resolution 
disapproving the extension of NTR treatment to the products of 
the People's Republic of China, was introduced by 
Representative Solomon.
    On June 20, 1997, the Committee reported H. J. Res. 79 
adversely to the House without amendment (H. Rept. 105-140). On 
June 24, 1997, H. J. Res. 79 failed passage in the House, 
thereby continuing NTR treatment for one year.
    On June 3, 1998 the President announced his decision to 
waive, for another year with respect to China, the freedom-of-
emigration requirements in Title IV of the Trade of Act of 
1974, thereby granting China NTR status between July 1998 and 
July 1999.
    On June 17, 1998, the Subcommittee on Trade held a hearing 
on the question of renewing China's NTR status. At this 
hearing, Members of Congress, as well as representatives of the 
Administration and business and religious groups, expressed 
their views regarding U.S.-China trade relations.
    On June 4, 1998, H. J. Res. 121, a joint resolution 
disapproving the extension of NTR treatment to the products of 
the People's Republic of China, was introduced by 
Representative Solomon. On July 20, 1998, the Committee 
reported H. J. Res. 121 adversely to the House without 
amendment (H. Rept. 105-638). On July 22, 1998, H. J. Res. 121 
failed passage in the House, thereby continuing NTR treatment 
for China for one year.

d. Trade relations with Japan

    H. Res. 392, a resolution calling on Japan to address its 
economic and financial problems and open its markets by 
eliminating informal barriers to trade and investment, and 
thereby make a more effective contribution to leading the Asian 
region out of its current financial crisis, was introduced by 
Representative Bereuter on March 3, 1998. The resolution was 
referred to the Committee on International Relations and in 
addition to the Committee on Ways and Means.
    On June 25, 1998, the Committee on International Relations 
favorably reported H. Res. 392 to the House (H. Rept. 105-607, 
Part I).
    On July 15, 1998, the Subcommittee on Trade held a hearing 
on U.S.-Japan trade relations. This hearing allowed the 
Subcommittee to address the necessity for Japanese 
implementation of broad structural reforms, including 
deregulation of its economy, reform of its banking system, 
improved transparency, and the opening of its distribution 
system to eliminate exclusionary business practices.
    On July 16, 1998, Chairman Archer wrote to Chairman Gilman 
of the Committee on International Relations indicating that in 
order to expedite consideration of the resolution, and based on 
testimony received at the July 15, 1998 Subcommittee hearing, a 
mark up of H. Res. 392 by the Committee on Ways and Means would 
not be necessary. On July 17, 1998, the Committee was 
discharged. The House passed H. Res. 392 on July 20, 1998.

e. Trade relations with the Kyrgyz Republic, including normal trade 
        relations

    On September 22, 1998, Representative Solomon introduced 
H.R. 4606, authorizing the President to determine that title IV 
of the Trade Act of 1974, commonly known as the Jackson-Vanik 
amendment, should no longer apply to the Kyrgyz Republic and to 
extend unconditional normal trade relations to that country. 
The bill was referred to the Committee on Ways and Means.
    On October 7, 1998, Subcommittee Chairman Crane issued a 
request for written public comment on the extension of 
unconditional normal trade relations to the Kyrgyz Republic. In 
response, the Subcommittee received comments in support of the 
proposed extension and none opposed to it.
    No further action was taken on this legislation.

f. Trade relations with the Lao People's Democratic Republic, including 
        normal trade relations

    On June 19, 1997, the Subcommittee on Trade issued a 
request for written public comment on the extension of normal 
trade relations (``NTR'') to the products of the Lao People's 
Democratic Republic. In response, the Subcommittee received 
comments from the private sector in favor of the proposed 
extension and no comments in opposition to it.
    On July 10, 1997, Subcommittee Chairman Crane and 
Representative Matsui introduced a bill, H.R. 2132, to provide 
for the extension of NTR treatment to the products of the Lao 
People's Democratic Republic by striking ``Laos'' from General 
note 3(b) from the Harmonized Tariff Schedule.
    On July 15, 1997, the Subcommittee on Trade reported H.R. 
2132 to the full Committee without amendment. No further action 
was taken on this legislation.

g. Trade relations with Mongolia, including normal trade relations

    On January 21, 1997, the President transmitted a report to 
Congress indicating Mongolia's continued compliance with the 
freedom-of-emigration criteria contained in title IV of the 
Trade Act of 1974, commonly known as the Jackson-Vanik 
amendment (H. Doc. 105-24).
    On May 30, 1997, the Subcommittee on Trade issued a request 
for written public comment on the extension of unconditional 
normal trade relations to the products of Mongolia. In 
response, the Subcommittee received comments from the private 
sector in favor of the proposed extension and no comments in 
opposition to it.
    On July 10, 1997, Subcommittee Chairman Crane introduced 
H.R. 2133, to provide the President with the authority to 
determine that the Jackson-Vanik amendment should no longer 
apply with respect to Mongolia and to proclaim the extension of 
unconditional nondiscriminatory treatment to the products of 
that country.
    On July 15, 1997, the Subcommittee on Trade reported H.R. 
2133 to the full Committee without amendment.
    On July 1, 1998, the Congress received a presidential 
message transmitting a reporting indicating Mongolia's 
continued compliance with the Jackson-Vanik freedom-of-
emigration requirements (H. Doc. 105-283).
    On October 12, 1998, Subcommittee Chairman Crane, 
Representative Matsui et alia introduced a bill, H.R. 4708, 
which was identical to H.R. 2133 except for corrections to 
reflect the change in terminology from most-favored-nation to 
normal trade relations enacted as part of the Internal Revenue 
Service Restructuring and Reform Act of 1998 (P.L. 105-206). 
The text of H.R. 4708 was then included in H.R. 4856, the 
Miscellaneous Trade and Technical Corrections Act of 1998, 
introduced by Chairman Archer on October 20, 1998 and passed by 
the House that day.
    No further action was taken on this legislation.
    Similar legislation was included in S. 2400, as reported by 
the Senate Committee on Finance, but no further action was 
taken on the bill.

h. Trade relations with Vietnam

    On March 9, 1998, the President determined that a waiver 
for Vietnam from the freedom-of-emigration criteria in title IV 
of the Trade Act of 1974, commonly known as the Jackson-Vanik 
amendment, would substantially promote achievement of the 
objectives in the statute. On April 7, 1998, the President 
transmitted a letter to the Speaker of the House of 
Representatives containing a copy of Executive Order 13079, 
under which the President's Jackson-Vanik waiver determination 
entered into force (House Document 105-238).
    Because Vietnam has not concluded a bilateral commercial 
agreement with the United States, which would have to be 
approved by Congress, it does not qualify for normal trade 
relations with the United States and is ineligible to receive 
normal tariff treatment. Therefore, the practical effect of the 
Jackson-Vanik waiver is to make Vietnam eligible for coverage 
by certain U.S. government credits, or investment or credit 
guarantee programs, provided that Vietnam meets the relevant 
program criteria. These programs, which lie outside the 
jurisdiction of the Committee on Ways and Means, include the 
Overseas Private Investment Corporation, the Export-Import 
Bank, and agricultural credit programs administered by the U.S. 
Department of Agriculture.
    Under the statute, this initial waiver determination was 
scheduled to expire on July 2, 1998. On June 3, 1998, the 
President determined that a 12-month continuation of the waiver 
for Vietnam (from July 3, 1998 to July 2, 1999) would further 
promote achievement of the freedom-of-emigration criteria in 
the statute (House Document 105-263).
    H. J. Res. 120 was introduced on June 4, 1998, by 
Representative Rohrabacher to disapprove of the extension of 
Vietnam's Jackson-Vanik waiver.
    On June 18, 1998, the Subcommittee on Trade held a hearing 
on the issue of U.S.-Vietnamtrade relations. At the hearing, 
testimony was received from Members of Congress, representatives of 
POW/MIA families, veterans organization, refugees, Vietnamese-
Americans, and U.S. business groups.
    Former Member of Congress and the current U.S. Ambassador 
to Vietnam, Douglas ``Pete'' Peterson, presented testimony from 
the Administration in support of the President's waiver 
extension.
    On June 23, 1998, the Subcommittee on Trade reported H. J. 
Res. 120 adversely to the Full Committee without amendment. On 
July 29, 1998, the Committee on Ways and Means reported H. J. 
Res. 120 adversely to the House of Representatives without 
amendment (H. Rept. 105-653).
    On July 30, 1998, H.J. Res. 120 failed passage in the 
House, thereby continuing Vietnam's Jackson-Vanik waiver for a 
year.

i. Unilateral trade sanctions

    On October 23, 1997, Representative Hamilton, for himself, 
Subcommittee Chairman Crane, and a number of other cosponsors, 
introduced the Enhancement of Trade, Security, and Human Rights 
through Sanctions Reform Act. The legislation would have 
established a framework for the consideration of unilateral 
economic sanctions by the legislative and executive branches. 
On October 23, 1997, the Subcommittee on Trade held a hearing 
on the use and effectiveness of unilateral trade sanctions, and 
the Subcommittee received testimony from the Administration, 
Members of Congress, and private sector witnesses.
    In August, 1998, the International Trade Commission 
submitted a reported to the Committee, requested by Chairman 
Archer, providing an overview and analysis of current U.S. 
unilateral economic sanctions.
    No further action was taken on the legislation.

  3. operations of the u.s. customs service, the international trade 
      commission, and the office of the u.s. trade representative

a. Authorization of appropriations

    On March 11, 1997, the Committee on Ways and Means held a 
hearing on budget authorizations for fiscal years 1998 and 1999 
for the Customs Service, the Office of the United States Trade 
Representative, and the International Trade Commission. 
Representatives of these agencies, the U.S. General Accounting 
Office, and invited private sector witnesses testified at the 
hearing.
    On April 28, 1997, Subcommittee Chairman Crane introduced 
H.R. 1463, authorizing appropriations in the fiscal years 1998 
and 1999 for the Customs Service for non-commercial and 
commercial operations, and air and marine interdiction 
programs; the Office of the United States Trade Representative; 
and the International Trade Commission. H.R. 1463 was referred 
to the Committee on Ways on Means.
    The Committee considered H.R. 1463 on April 30, 1997, and 
ordered the legislation to be favorably reported, as amended. 
On May 1, 1997, the Committee reported the bill to the House, 
as amended (H. Rept. 105-85). The House passed the bill on May 
6, 1997.
    H.R. 1463 was received in the Senate and referred to the 
Committee on Finance. No further action was taken on the 
legislation. However, similar provisions were included in H.R. 
3809, the ``Drug Free Border Act''. (see below)

b. Customs user fees

    On November 12, 1997, Representative Shaw introduced H.R. 
3034, a bill to amend section 13031 of the Consolidated Omnibus 
Budget Reconciliation Act of 1985, relating to customs user 
fees. The legislation would have allowed the Customs Service to 
use available customs user fees to provide salaries for up to 
50 full-time equivalent inspectional positions through FY 1998 
for inspectional services in Florida of passengers aboard 
commercial vessels, regardless of whether such passengers are 
required to pay fees. H.R. 3034 was referred to the Committee 
on Ways and Means.
    H.R. 3034 was passed by the House on November 13, 1997. The 
bill was also received by the Senate and was passed without 
amendment by unanimous consent on November 13, 1997. The 
President signed the bill into law on December 16, 1997 (P.L. 
105-150).
    On April 1, 1998, Subcommittee Chairman Crane introduced 
H.R. 3644 authorizing the Customs Service to use Customs user 
fees for pre-clearance activities. Specifically, the 
legislation would have provided for the use of Customs user 
fees, to the extent funds remain available after making certain 
reimbursements, for up to 50 full-time equivalent inspectional 
positions to provide pre-clearance services at 11 locations in 
other countries where such services are provided.
    In addition, the legislation would have directed the 
Commissioner of Customs to establish an advisory committee, 
consisting of representatives from the airline, cruise ship and 
other transportation industries, to advise the Commissioner on 
issues relating to theperformance of U.S. Customs Service 
inspectional services.
    H.R. 3644 was referred to the Committee on Ways and Means. 
On May 12, 1998, the Subcommittee on Trade considered the bill 
and ordered it reported to the full Committee, as amended. The 
provisions of H.R. 3644 were substantially included in H.R. 
4608, H.R. 4819, and H.R. 4856. (see below)
    On September 11, 1998, the Subcommittee favorably reported 
to the full Committee a draft bill consisting of, among other 
things, authorization to use of the Customs user fee account to 
pay for preclearance activities in certain areas; a collection 
of a $1 fee from cruise ship passengers to be used to pay 
salaries of Customs inspectors for such passengers; and the 
establishment of a Customs Advisory Committee consisting of 
representatives of the airline, cruise ship and other 
transportation industries to consider issues relating to the 
performance of Customs Service inspectional services.
    On September 23, 1998, Subcommittee Chairman Crane 
introduced the draft bill, and it was designated H.R. 4608. The 
bill was referred to the Committee on Ways and Means. No 
further action was taken on H.R. 4608, but its provisions were 
substantially included in H.R. 4856. (see below)
    On October 13, 1998, Representative Shaw introduced H.R. 
4819, the Passenger Services Enhancement Act and was referred 
to the Committee on Ways and Means. The legislation would have 
provided authority to use Customs user fees to pay salaries of 
up to 50 full-time equivalent Customs inspectional positions to 
provide pre-clearance services. In addition, the legislation 
would have given the Customs Service the authority to collect 
fees from passengers arriving aboard a commercial vessel from 
Canada, Mexico, and the Carribean in the amount of $1.75 and 
would have permitted the use of Customs user fees to fund 
inspectional services for these passengers. H.R. 4819 would 
also have provided authorization for the Customs Service to use 
$50 million of the surplus from the Merchandise Processing Fee 
for the Customs Automated Commercial Systems, and to establish 
an Advisory Committee consisting of representatives of the 
airline, cruise ship and other transportation industries to 
review the performance of the Customs Service inspectional 
services.
    The provisions of the bill were substantially included in 
H.R. 4856, the Miscellaneous Trade and Technical Corrections 
Act of 1998.
    H.R. 4856 was introduced by Chairman Archer on October 20, 
1998, and was passed by the House later that day by a voice 
vote. The Senate took no action on this legislation. (see 
below)

c. Drug Free Borders Act

    On May 7, 1998, Subcommittee Chairman Crane introduced H.R. 
3809, the Drug Free Borders Act of 1998. Title I of the 
legislation would have authorized appropriations for the 
Customs Service in fiscal years 1999 and 2000 and would have 
increased Customs authorization by 31 percent for drug 
enforcement over the President's request for those fiscal 
years. Title II of the legislation would have enabled the 
Customs Service to rotate Customs officers to different 
assignments to help fight the war on drugs in emergency cases 
and to take action if a collective bargaining agreement has an 
adverse impact on drug interdiction. Title II would have also 
revised Customs overtime and premium pay to assure that such 
pay is awarded only for hours worked, as well as relaxed the 
manner of calculation of the $30,000 cap for Customs officers 
premium and overtime pay.
    H.R. 3809 was referred to the Committee on Ways and Means. 
On May 12, 1998, the legislation was marked up by the Trade 
Subcommittee and favorably reported to the full Committee. The 
Committee on Ways and Means then ordered the bill favorably 
reported, as amended, on May 14, 1998 (H. Rept. 105-541). The 
bill was called up by the House under suspension of the rules 
on May 19, 1998, and passed by a vote of 320 to 86.
    H.R. 3809 was received in the Senate and referred to the 
Committee on Finance. On September 10, 1998, the Committee on 
Finance favorably reported the bill with an amendment in the 
nature of a substitute (S. Rept. 105-359). The Committee's 
amendment would have applied the bill to fiscal years 2000 and 
2001, rather than 1999 and 2000 as passed by House, and did not 
contain the provisions of title II passed by the House. The 
bill passed the Senate, as amended, by unanimous consent on 
October 8, 1998.
    No further action was taken on this legislation.

d. Western Hemisphere Drug Elimination Act

    On July 22, 1998, Representative McCollum introduced H.R. 
4300, the Western Hemisphere Drug Elimination Act. The bill was 
referred to the Committee on International Relations, and in 
addition to the Committees on Ways and Means, the Judiciary, 
National Security, and Transportation and Infrastructure. The 
bill included authorizations for appropriations for the U.S. 
Customs Service for drug interdiction purposes.
    In a letter to the Speaker of the House dated September 14, 
1998, Chairman Archer expressed concerns that the Customs 
Service have adequate resources to fulfill its drug 
interdiction and trade facilitation responsibilities, as 
reflected in H.R. 3809. Chairman Archer noted that it was his 
understanding that the Speaker was not seeking to diminish the 
funding levels in H.R. 3809 but was seeking supplemental 
funding for the Customs druginterdiction efforts contained in 
H.R. 4300. On the basis of this understanding, Chairman Archer agreed 
to forgo a Committee mark up of H.R. 4300, expressing that doing so did 
not prejudice the Committee's jurisdictional prerogatives. Finally, 
Chairman Archer reiterated his understanding that the Speaker would 
support the funding priorities and levels contained in H.R. 3809.
    In a response to Chairman Archer dated September 15, 1998, 
the Speaker stated that it was his intention to seek additional 
and supplemental appropriations to carry out the drug 
interdiction efforts contained in H.R. 4300 and that H.R. 4300 
should not be seen as a shift from the priorities outlined in 
H.R. 3809. The Speaker also acknowledged that Chairman Archer's 
action would not prejudice the jurisdictional prerogatives of 
the Committee on Ways and Means on H.R. 4300.
    H.R. 4300 passed the House on September 16, 1998, as 
amended. The bill was received in the Senate and was referred 
to the Committee on Foreign Relations. The legislation was 
substantially incorporated in the conference report to H.R. 
4328, the Omnibus Appropriation Bill for Fiscal Year 1999 (H. 
Rept. 105-825, p. 719), which was passed by the House on 
October 20, 1998, and by the Senate on the next day. H.R. 4328 
was signed into law on October 21, 1998 (P.L. 105-277).

                  4. GENERALIZED SYSTEM OF PREFERENCES

    For a discussion of GSP issues included in the Taxpayer 
Relief Act of 1997, see I.A.2., above.
    On September 23, 1998, Trade Subcommittee Chairman Crane 
introduced H.R. 4608, legislation which included a 
reauthorization of the GSP program through June 30, 2000. The 
provisions of the bill had been reported by the Trade 
Subcommittee to the full Committee, in draft form, on September 
11, 1998. No further action taken on this bill.
    However, a renewal of the GSP program through June 30, 
1999, was included in the conference report to H.R. 4328, the 
Omnibus Appropriations Bill for Fiscal Year 1999 (H. Rept. 105-
825, p. 932). The conference report passed the House on October 
20, 1998, and the Senate on October 21, 1998. H.R. 4328 was 
signed into law on October 21, 1998 (P.L. 105-277).

                     5. TRADE ADJUSTMENT ASSISTANCE

    H.R. 2621, the Reciprocal Trade Agreement Act (see above), 
as reported, contained a renewal of the general Trade 
Adjustment Assistance (TAA) programs for workers and firms, as 
well as the NAFTA-related TAA program (all of which were 
scheduled to expire on September 30, 1998) through fiscal year 
2000. In addition, the bill contained a provision requiring the 
General Accounting Office to conduct a study of the general TAA 
and the NAFTA-related TAA program and report to Congress no 
later than October 1, 1999.
    The manager's amendment to H.R. 2621 considered and adopted 
by the House on September 25, 1998 provided for an extension of 
the general TAA and NAFTA-related TAA programs through December 
31, 1999. H.R. 2621 failed passage on September 25, 1998.
    Renewal of the general TAA programs for workers and firms, 
as well as the NAFTA-related TAA program, through June 30, 
1999, was later included in the conference report to H.R. 4328, 
the Omnibus Appropriations Bill for Fiscal Year 1999 (H. Rept. 
105-825). The conference report was passed by the House on 
October 20, 1998, and by the Senate on the next day. H.R. 4328 
was signed into law on October 21, 1998 (P.L. 105-277).

                6. RESOLUTIONS CONCERNING TRADE IN STEEL

    On September 18, 1998, Representative Regula introduced H. 
Con. Res. 328, a concurrent resolution calling on the President 
to take all necessary measures to respond to the surge of steel 
imports resulting from the financial crisis. The resolution was 
referred to the Committee on Ways and Means.
    On October 12, 1998, Chairman Archer introduced H. Con. 
Res. 350, a concurrent resolution calling on the President to 
take all necessary measures under existing law to respond to 
the significant increase of steel imports resulting from the 
financial crisis. The resolution would have called upon the 
President to pursue vigorous enforcement of U.S. trade laws; 
pursue consultations with U.S. trading partners to eliminate 
import barriers that affect steel mill products and to increase 
access to their markets; closely monitor U.S. imports of steel 
and make the data gathered available to the public as soon as 
possible; and report to Congress by January 5, 1999, on the 
impact that the significant increase in steel imports is having 
on employment, prices and investment in the U.S. steel 
industry.
    H. Con. Res. 350 was considered by the House on October 12, 
1998, failed passage.
    On October 14, 1998, Representative Traficant introduced H. 
Res. 598. This resolution expresses the sense of the House that 
its integrity has been impugned by the failure of the 
Administration to expeditiously enforce title VII of the Tariff 
Act of 1930 in response to the surge of steel imports resulting 
from the financial crisis. The resolution calls on the 
President to immediately review, for a ten-day period, the 
entry of all steel products from Australia, China, South 
Africa, Ukraine, Indonesia, India, Japan, Russia, South Korea, 
and Brazil. If, at the conclusion of this period, the President 
finds that these governmentsare not abiding by the spirit and 
letter of international trade agreements concerning steel, the 
resolution calls upon him to impose immediately a one-year ban on 
imports of all steel products from these countries. The resolution also 
establishes a task force within the executive branch to closely monitor 
steel imports and to report to Congress by January 5, 1999, on any 
other actions that the President has taken, or intends to take. The 
resolution passed the House on October 15, 1998.
    The conference report to H.R. 4328, the Omnibus 
Appropriations Bill for fiscal year 1999 (H. Rept. 105-825, p. 
612), which was signed into law on October 21, 1999 (P.L. 105-
277), calls on the President to pursue enhanced enforcement of 
U.S. trade laws with respect to the increase in steel imports 
into the United States, using all remedies available under U.S. 
laws, including imposition of offsetting duties, quantitative 
restrictions, and other appropriate remedial measures; pursue 
all methods at the President's disposal to achieve a more 
equitable sharing of the burden of accepting imports of 
finished steel products from Asia and the former Soviet Union; 
establish a task force within the executive branch to closely 
monitor imports of steel; and report to Congress by January 5, 
1999, with a comprehensive plan for responding to the increase 
in steel imports.

7. trade provisions in the omnibus appropriations bill for fiscal year 
                                  1999

    The conference report on the Omnibus Appropriations Bill 
for Fiscal Year 1999, H.R. 4328, included several trade 
provisions within the jurisdiction of the Committee on Ways and 
Means. Sec. 111 (H. Rept. 105-825, p. 612) calls upon the 
President to pursue enhanced enforcement of U.S. trade laws 
with respect to the importation of steel imports (see above); 
Sec. 127 (H. Rept. 105-825, p. 567) establishes an Emergency 
Trade Deficit Review Commission for purposes of reviewing the 
U.S. trade deficit; Sec. 622 (H. Rept. 105-825, p. 120) 
requires the U.S. Trade Representative to report to Congress on 
whether the Korean Government has provided subsidies to its 
domestic steel industry; Sec. 650 (H. Rept. 105-825, p. 546) 
requires the Customs Service to report to Congress on the 
efficiency and effectiveness of requiring that all spring 
wheat, durum and barley be imported into the United States 
through a single port of entry; Sec. 1102 (H. Rept. 105-825, p. 
748) establishes an Advisory Commission on Electronic Commerce; 
Sec. 1203 (H. Rept. 105-825, p. 753) expresses the Sense of 
Congress that the Internet should be free of foreign tariffs, 
trade barriers, and other restrictions; Sec. 2808 (H. Rept. 
105-825, p. 2808) states that the Congress favors public 
support by officials of the Department of State for the 
accession of Taiwan to the World Trade Organization; Sec. 1011 
extends the GSP program through June 30, 1999; Sec. 1012 renews 
the TAA program for Workers and Firms through June 30, 1999 (H. 
Rept. 105-825, p. 932) (see above); and title VIII, the Western 
Hemisphere Drug Elimination Act, provides authorizations and 
appropriations for additional drug interdiction activities by 
the U.S. Customs Service (H. Rept. 105-825, p. 719). (see 
above)
    The conference report on H.R. 4328 (H. Rept. 105-825) 
passed the House on October 20, 1998 and the Senate on October 
21, 1998. H.R. 4328 was signed into law on October 21, 1998 
(P.L. 105-277).

                     8. miscellaneous trade issues

a. Legislation making technical corrections and miscellaneous 
        amendments to U.S. trade laws

    On June 30, 1997, Subcommittee Chairman Crane requested 
written comments from parties interested in miscellaneous trade 
proposals, technical corrections to the trade laws, and 
temporary duty suspensions on certain imports (Trade Advisory 
TR-10). These technical corrections related to the on-going 
process of identifying changes to improve the efficiency of the 
trade laws.
    On October 7, 1997, Chairman Crane introduced H.R. 2622, 
the Miscellaneous Trade and Technical Corrections Act of 1997. 
This legislation included provisions which were non-
controversial based on public comments received, Administration 
comments, and revenue analysis by the Congressional Budget 
Office. H.R. 2622 was referred to the Committee on Ways and 
Means.
    H.R. 2622 contained two parts. The first part contained 
miscellaneous amendments intended to streamline Customs laws. 
The second part contained a group of provisions to provide for 
temporary duty suspensions, and related provisions, for certain 
imports.
    The provisions of the first part of H.R. 2622 included 
legislation relating to: (1) review of protests against Customs 
Service decisions; (2) drawback and refund of packaging 
material; (3) including commercial importation data from 
foreign-trade zones under the National Customs Automation 
Program; (4) treatment of international travel merchandise held 
at custom-approved storage rooms; (5) entries of North American 
Free Trade Agreement (NAFTA)-origin goods, including any 
protest against a decision of the Customs service relating to 
NAFTA claims; and (6) overtime and premium pay for Customs 
officers.
    The duty suspension provisions of the second part of H.R. 
2622 related mostly to products for which there is no U.S. 
domestic manufacturer. The majority of these duty suspensions 
were chemicals, including those used to develop drugs to fight 
AIDS and cancer. Other duty suspension articles included 
skating boots for use in the manufacture of in-line roller 
skates and high tenacity and specified single yarn of viscose 
rayon. Thelegislation would have also provided for tariff 
treatment for certain components of scientific instruments and 
apparatus, as well as the application of the domestic equivalency test 
to such components.
    In addition, H.R. 2622 would have directed the Secretary of 
the Treasury to convene a working group of interested parties, 
publish regulations by March 31, 1998, and if necessary, submit 
legislation to Congress to modify and simplify the processing 
of finished petroleum derivatives claims.
    The Committee considered H.R. 2622 on October 8, 1997 and 
favorably reported the bill to the House (H. Rept. 105-367). No 
further action was taken on H.R. 2622, but its provisions were 
substantially incorporated in H.R. 4342 and H.R. 4856. (see 
below)
    On December 22, 1997, Subcommittee Chairman Crane requested 
written public comments from parties interested on additional 
miscellaneous and technical proposals to amend U.S. trade laws 
(Trade Advisory TR-19). In response to the comments received, 
Subcommittee Chairman Crane introduced H.R. 4342, the 
Miscellaneous Trade and Technical Corrections Act of 1998, on 
July 29, 1998. H.R. 4342 was referred to the Committee on Ways 
and Means.
    H.R. 4342 contained two parts. The first part contained 
miscellaneous corrections to U.S. trade laws. The second part 
contained provisions for temporary duty suspensions and other 
trade provisions. The miscellaneous corrections portion of the 
bill would have made clerical amendments to the trade laws to 
bring them up to date with current institutions and statutes.
    The second part of H.R. 4342 was in two sections. The first 
section would have provided temporary duty suspensions for 
specified chemicals and dyes, substantially including those 
contained in H.R. 2622, as well as duty suspensions for 
additional articles. The second section of H.R. 4342 
substantially included the other provisions contained in H.R. 
2622. In addition, this section contained provisions to (1) 
amend the Harmonized Tariff Schedule of the United States to 
extend to certain fine jewelry the trade benefits of insular 
possessions of the United States; (2) permit the deferral 
(until sale) of duty payment on any large yacht (exceeding 70 
feet in length and used primarily for pleasure) that is 
imported for sale if the importer meets certain conditions; and 
(3) provide an exception to the five-year reviews of 
antidumping and countervailing orders in very limited 
circumstances.
    On July 29, 1998, the Committee on Ways and Means 
considered H.R. 4342 and ordered it favorably reported to the 
House by voice vote (H. Rept. 105-671). On August 4, 1998, the 
bill was passed by the House.
    On August 31, 1998, the Senate received H.R. 4342 and 
referred it to the Committee on Finance. On September 10, 1998, 
the Committee on Finance favorably reported the bill to the 
Senate with an amendment in the nature of a substitute (S. 
Rept. 105-356). No further action was taken on H.R. 4342, but 
its provisions were later substantially included in H.R. 4856. 
(see below)
    On September 11, 1998, the Subcommittee considered and 
favorably reported to the full Committee a draft bill 
consisting of, among other things, a number of miscellaneous 
changes to the customs and tariff provisions of U.S. law. On 
September 23, 1998, Subcommittee Chairman Crane introduced the 
draft bill, and it was designated H.R. 4608. The bill was 
referred to the Committee on Ways and Means.
    H.R. 4608 would have, among other things, allowed for the 
following: drawback of methyl tertiary-butyl ether (MBTE), if 
certain requirements are met; drawback for substituted 
petroleum derivatives; reliquidation of nuclear fuel assemblies 
and water resistant wool trousers and the issuance of a refund 
if applicable; reliquidation of certain entries of mueslix 
cereal using the Column 1 duty rate applicable to Canada for 
the period between 1992 through 1995 and issuance of refunds if 
applicable; expansion of the Foreign Trade Zone No. 163 area to 
include areas in the vicinity of Chico Municipal Airport; use 
of Customs user fee account to pay for preclearance activities 
in certain areas; a collection of a $1 fee from cruise ship 
passengers to be used to pay salaries of Customs inspectors for 
such passengers; establishment of a Customs Advisory Committee 
consisting of representatives of the airline, cruise ship and 
other transportation industries to consider issues relating to 
the performance of Customs Service inspectional services; and 
exemption of certain woven fabrics containing silk from country 
of origin marking under the applicable statute.
    The Trade Subcommittee reported H.R. 4608 to the full 
Committee on September 11, 1998. No further action was taken on 
H.R. 4608, but its provisions were substantially included in 
H.R. 4856.
    On October 20, 1998, Chairman Archer introduced H.R. 4856, 
the Miscellaneous Trade and Technical Corrections Act of 1998, 
which was referred to the Committee on Ways and Means. Later 
that day, the bill was passed by the House.
    Among other things, H.R. 4856 contained substantially the 
provisions contained in H.R. 4342, as amended by the Senate 
Finance Committee, and H.R. 4608. The legislation was received 
in the Senate on October 21, 1998. No further action was taken 
on this legislation.

b. Elimination of agricultural trade barriers

    On February 11, 1998, H. Con. Res. 213, a concurrent 
resolution expressing the Sense of Congress that the European 
Union is unfairly restricting the importation of U.S. 
agriculture products, was introduced by Representative Ewing. 
On February 12, 1998, the Subcommittee on Trade held a hearing 
on U.S. efforts to reduce barriers to trade in agriculture, and 
on July 28, 1998, the Subcommittee on Trade held a hearing on 
trade relations with Europe and the New Transatlantic Economic 
Partnership. An identical resolution to H. Con. Res. 213, S. 
Con. Res. 73, passed the Senate on May 21, 1998, by unanimous 
consent. S. Con. Res. 73 was referred to the Committee on Ways 
and Means on May 22, 1998. On August 3, 1998, the Committee 
reported H. Con. Res. 213, as amended, to the House (H. Rept. 
105-672).
    As reported by the Committee, H. Con. Res. 213 emphasized 
the importance of achieving the reduction of barriers to trade 
in agriculture by all U.S. trading partners and underscored 
that the elimination of these barriers should be a top priority 
of multilateral and bilateral trade negotiations. The 
resolution called on the President to: 1) develop a trade 
agenda that actively addresses agricultural trade barriers in 
multilateral and bilateral trade negotiations; 2) in conducting 
such negotiations, seek competitive opportunities for U.S. 
exports in foreign markets substantially equivalent to the 
competitive opportunities afforded foreign exports in U.S. 
markets, in consultation with Congress; and 3) aggressively 
pursue full compliance with dispute settlement decisions of the 
World Trade Organization (WTO).
    On August 4, 1998, the House passed H. Con. Res. 213, as 
amended. There was no further action on H. Con. Res. 213.

c. Freedom from Religious Persecution Act

    H.R. 2431, the Freedom from Religious Persecution Act of 
1998, a bill to reduce and eliminate religious persecution 
taking place throughout the world, was introduced by 
Representative Wolf on September 8, 1997. On April 1, 1998, the 
Committee on International Relations reported H.R. 2431 to the 
House (H. Rept. 105-480, Part I). On May 8, 1998, the Committee 
on Ways and Means reported H.R. 2431, as amended, to the House 
(H. Rept. 105-480, Part II). The effect of the amendments 
approved by the Committee was to strike all provisions that 
were within its jurisdiction, including a prohibition on 
imports from Sudan. On May 14, 1998, the House passed H.R. 
2431, as amended. On October 9, 1998, the Senate passed H.R. 
2431, as amended. On October 10, 1998, the House agreed to the 
Senate amendments, which were not within the jurisdiction of 
the Committee on Ways and Means. On October 27, 1998, H.R. 2431 
was signed into law (P.L. 105-292).

d. ``Normal trade relations'' terminology

    H.R. 2316, a bill to substitute the term ``normal trade 
relations'' for the term ``most-favored-nation'' in all trade 
laws and regulations in order to reflect more accurately the 
principles of U.S. trade policy, was introduced by Subcommittee 
Chairman Crane on July 31, 1997. The Subcommittee on Trade 
reported H.R. 2316 to the full Committee on June 23, 1998. No 
further action was taken on H.R. 2316.
    However, the conference report on H.R. 2676, the Internal 
Revenue Service Restructuring and Reform Act of 1997, which was 
approved by the House on June 25, 1998, included the text of 
H.R. 2316. On July 22, 1998, H.R. 2676 was signed into law 
(P.L. 105-206).

e. Rhinoceros and Tiger Product Labeling Act

    On November 4, 1997, Representative Saxton introduced H.R. 
2807, the Rhinoceros and Tiger Product Labeling Act. The bill 
was referred to the Committee on Resources.
    On April 28, 1998, the Committee on Resources reported H.R. 
2807 to the House of Representatives (H. Rept. 105-495).
    On April 23, 1998, Chairman Archer wrote to Resources 
Chairman Young regarding the import prohibition in H.R. 2807 on 
substances derived, or purported to be derived, from any 
species of rhinoceros or tiger, as well as the forfeiture 
provisions contained in the bill affecting the U.S. Customs 
Service. In his letter, Chairman Archer noted that a mark up by 
the Committee on Ways and Means would not be necessary because 
H.R. 2807, as ordered reported by the Resources Committee, 
would apply the import ban in compliance with U.S. obligations 
under an existing multilateral agreement. With respect to the 
Customs forfeiture provisions, Chairman Archer stated that it 
was his understanding that Chairman Young would offer an 
amendment during House consideration of the bill to substitute 
language that would apply existing statutory Customs forfeiture 
provisions.
    On April 28, 1998, H.R. 2807 was passed by the House with 
an amendment including the Customs forfeiture language 
recommended by Chairman Archer.
    On October 8, 1998, the Senate passed a similar bill, S. 
361, which also contained an import ban within the jurisdiction 
of the Committee on Ways and Means. Because S. 361 contained a 
revenue measure in contravention to the constitutional 
requirement that revenue measures originate in the House of 
Representatives, Subcommittee Chairman Crane introduced a 
resolution, H. Res. 601, to return S. 361 to the Senate. H. 
Res. 601 wasconsidered and passed by the House on October 15, 
1998.
    On October 13, 1998, the Senate amended and passed H.R. 
2807. Although the Senate language on Customs forfeiture was 
different from the House-passed bill, the intent and effect of 
the Senate version was the same as that recommended by Chairman 
Archer in the House version. On October 14, 1998, the House 
agreed to the Senate amendment with an amendment not affecting 
Ways and Means Committee provisions. On October 15, 1998, the 
Senate agreed to the House amendments. H.R. 2807 was signed 
into law on October 30, 1998 (P.L. 105-312).

f. International Dolphin Conservation Program Act

    On January 9, 1997, Representative Gilchrest introduced 
H.R. 408, the International Dolphin Conservation Program Act. 
The bill was referred to the Committee on Resources, which 
reported the bill to the House on April 24, 1997 (H. Rept. 105-
74, Part I). The bill was then referred sequentially to the 
Committee on Ways and Means for a period ending on May 5, 1997, 
for consideration of the provisions of the bill within the 
Committee's jurisdiction. On May 1, 1997, the Committee 
reported the bill to the House (H. Rept. 105-74, Part 2).
    H.R. 408, as amended by the Committee on Resources and 
approved by the Committee on Ways and Means, maintains the 
current import ban for yellowfin tuna but changes the 
circumstances under which the ban would be imposed. 
Specifically, the bill permits importation if the harvesting 
nation complies with international standards, as follows: (1) 
the tuna was harvested by vessels of a nation that participates 
in the International Dolphin Conservation Program, the 
harvesting nation is either a member or has initiated steps to 
become a member of the Inter-American Tropical Tuna Commission, 
and the nation has implemented its obligations under the 
Program and the Commission; and (2) total dolphin mortality 
permitted under the Program is limited.
    On May 21, 1997, the House passed the bill, as amended. On 
July 30, 1997, the Senate struck all after the enacting clause 
and substituted the language of S. 39, as amended. The bill 
then passed the Senate. On July 31, 1997, the House agreed to 
the Senate amendment, which made no change to provisions within 
the jurisdiction of the Committee on Ways and Means. On August 
15, 1997, H.R. 408 was signed into law (P.L. 105-42).

g. Customs rules of origin for certain textile products

    On September 14, 1998, the Subcommittee on Trade issued a 
request for written public comment (Trade Advisory TR-30) on 
H.R. 4526, a bill introduced by Representative Cardin to 
restore a pre-existing rule of origin for certain dyed and 
printed fabrics and certain silk accessory products. As part of 
a settlement to a complaint brought by the European Union (EU) 
in the World Trade Organization against the so-called ``Breaux-
Cardin'' rules of origin, the United States and the EU agreed 
to a proces-verbal prepared on July 15, 1997. H.R. 4526, which 
was introduced on September 9, 1998, at the Administration's 
request, was intended by the Administration to implement this 
agreement. In response to the request, the Subcommittee 
received several comments from the private sector in opposition 
to the proposed change.

h. EU compliance with WTO dispute settlement decisions

    On October 7, 1998, Speaker Gingrich and Majority Leader 
Lott, in consultation with Chairman Archer, wrote to the 
President expressing strong concern that the WTO has determined 
in two separate instances that the EU is violating world trade 
laws. Speaker Gingrich and Majority Leader Lott stated that if 
the EU is permitted to ignore or delay these two WTO rulings, 
it will set a dangerous precedent that undermines the promise 
of an open global trading system governed by a rule of law. 
Specifically, the WTO determined that the EU's regime governing 
the importation of bananas is not in conformity with its WTO 
obligations. In addition, the WTO determined that the EU's ban 
on the use of hormones in livestock production is WTO-illegal. 
The letter indicated that if the Administration did not take 
action to protect trade agreements in these instances, that 
Congress would have no choice but to take action on its own.
    On October 9, 1998, Subcommittee Chairman Crane introduced 
H.R. 4761, a bill to require the U.S. Trade Representative to 
take certain actions in response to the failure of the EU to 
comply with the rulings of the WTO. On October 10, 1998, the 
House approved a rule for consideration of the bill (H. Res. 
588). Also on October 10, Erskine Bowles, White House Chief of 
Staff, wrote to the Leadership in Congress. He stated that 
unless the EU agreed to implement a WTO-consistent banana 
regime by January 2, 1999, the Administration would announce 
trade retaliation which would take effect on February 1, 1999, 
or on March 3, 1999, at the latest. Upon receipt of this 
letter, House consideration of H.R. 4761 was postponed, pending 
further developments in the WTO with respect to these two 
cases.

i. Intelligence authorization bills for fiscal years 1998 and 1999

    On June 4, 1997, Chairman Goss of the House Permanent 
Select Committee on Intelligence introduced H.R. 1775, the 
Intelligence Authorization Act for Fiscal Year 1998. As 
introduced, the bill contained a provision (section 305) within 
the jurisdiction of the Committee on Ways and Means extending 
for one year, through January 6, 1998, existinglaw under the 
National Security Act of 1947. This provision dealt with the 
President's authority to delay imposition of sanctions upon his 
determination that proceeding with sanctions could compromise an 
ongoing criminal investigation or an intelligence source or method.
    H.R. 1775 was referred to the House Permanent Select 
Committee on Intelligence and was reported to the House on June 
18, 1997 with an amendment (H. Rept. 105-135, Pt. 1).
    On June 9, 1997, Senator Shelby introduced a similar bill, 
S. 858. Section 305 of the bill, as introduced, contained a 
provision in the jurisdiction of the Committee on Ways and 
Means identical to that contained in the same section of H.R. 
1775. S. 858 was reported by the Senate Select Committee on 
Intelligence on June 9, 1997 (S. Rept. 105-24) and by the 
Senate Committee on Armed Services on June 18, 1997 (no written 
report filed). S. 858 was passed by the Senate on June 19, 
1997, by a vote of 98 to 1.
    On July 7, 1997, Chairman Archer wrote to Chairman Solomon 
of the Committee on Rules requesting that the rule providing 
for the consideration of H.R. 1775 strike section 305 from the 
bill. On July 8, 1997, House Intelligence Chairman Goss wrote 
to Chairman Archer regarding the jurisdictional objections 
raised by the Committee on Ways and Means to the inclusion of 
the provision in section 305 of H.R. 1775. In his letter, 
Chairman Goss noted the provision extended for one year an 
already existing application of sanctions law to intelligence 
activities and that it should in no way undermine the 
jurisdiction of the Committee on Ways and Means with respect to 
tax or revenue measures.
    On July 9, 1997, the House passed H.R. 1775 including the 
provision of interest to the Committee on Ways and Means in 
section 305. On July 17, 1997, the House passed S. 858, as 
amended, in lieu of H.R. 1775. This bill also contained the 
language of section 305. The conference report on S. 858 
included the sanctions provision in section 304 (H. Rept. 105-
350). On November 6, 1997, the conference report on S. 858 
passed the Senate and, on November 7, 1997, the House agreed to 
the conference report. S. 858 was signed into law on November 
20, 1997 (P.L. 105-107).
    On April 21, 1998, Intelligence Chairman Goss introduced 
H.R. 3694, the Intelligence Authorization Act for fiscal year 
1999. As introduced, the bill contained a provision (section 
303) extending for another year, until January 6, 2000, the 
provision in the National Security Act of 1947 pertaining to 
the President's authority to delay imposition of sanctions upon 
his determination that proceeding with sanctions could 
compromise an ongoing criminal investigation or an intelligence 
source or method. H.R. 3694 was referred to the House Permanent 
Select Committee on Intelligence.
    On April 28, 1998, House Intelligence Chairman Goss wrote 
to Chairman Archer regarding the jurisdictional interest of the 
Committee on Ways and Means in the provision in section 303 of 
the H.R. 3694, stating that the provision is an extension of 
existing law and his intension to consult with the Committee on 
Ways and Means on any modifications to the provision. On May 4, 
1998, Chairman Archer replied to Chairman Goss, indicating that 
because the provision is an extension of current law, a mark up 
by the Committee on Ways and Means would not be necessary.
    On May 5, 1998, the Intelligence Committee reported H.R. 
3694 to the House with an amendment (H. Rept. 105-508). On May 
7, 1998, the House passed H.R. 3694, as amended.
    On May 7, 1998, Senator Shelby introduced S. 2052, a 
similar bill to H.R. 3694, which also contained an extension of 
the sanctions waiver provision in section 303 of the 
legislation. S. 2052 was referred to the Senate Select 
Committee on Intelligence. Later that day, the Senate 
Intelligence Committee reported the bill favorably to the 
Senate (S. Rept. 105-185).
    On June 26, 1998, the Senate incorporated the provisions of 
S. 2052 into H.R. 3694 and passed the House bill by unanimous 
consent. The conference report on H.R. 3694 included the 
sanctions provision in section 303 (H. Rept. 105-780). On 
October 7, 1998, the House agreed to the conference report. The 
Senate agreed to the conference report on H.R. 3594 on October 
8, 1998. The bill was signed into law on October 20, 1998 (P.L. 
105-272).

j. Trade in auto parts

    H.R. 3616, the National Defense Authorization Act for 
Fiscal Year 1999, was introduced on April 1, 1998. As it passed 
the Senate, H.R. 3616 included provisions establishing an 
initiative on automotive parts sales to Japan and a special 
advisory committee on automotive parts sales in Japanese and 
other Asian markets. On July 23, 1998, Chairman Archer wrote to 
Chairman Spence of the Committee on National Security to 
request that these provisions be dropped from the conference 
agreement because they are in the jurisdiction of the Committee 
on Ways and Means, which had not yet considered them. On 
September 24, 1998, the House agreed to a conference report on 
H.R. 3616 that included a provision entitled ``The Fair Trade 
in Automotive Parts Act of 1998'' (H. Rept. 105-736). The 
Senate agreed to the conference report on October 1, 1998. On 
October 17, 1998, the President signed the bill into law (P.L. 
105-261).

k. Trade in products made with forced labor

    On July 17, 1997, H.R. 2195, a bill to increase the 
monitoring of products of the People's Republic of China made 
with forced labor, was introduced by Representative Smith of 
New Jersey. The bill was referred to the Committee on Ways and 
Means. On October 31, 1997, the Committee reported H.R. 2195, 
as amended, to the House (H. Rept. 105-366, Pt. 1). The 
amendment made several changes to the findings and modified 
language expressing the sense of Congress that the President 
should commence negotiations with the People's Republic of 
China to replace the current memorandum of understanding on 
forced labor. The House passed H.R. 2195, as amended, on 
November 5, 1997. There was no further action on this bill.
    On September 24, 1998, the House agreed to a conference 
report on H.R. 3616, the National Defense Authorization Act (H. 
Rept. 105-736), which contained the text of H.R. 2195. The 
Senate agreed to the conference report on October 1, 1998. On 
October 17, 1998, the President signed the bill into law (P.L. 
105-261).

                 D. Legislative Review of Health Issues

                     1. balanced budget act of 1997

    For a discussion of health provisions in the Balanced 
Budget Act of 1997, see I.A.1. above.

                     2. taxpayer relief act of 1997

    For a discussion of health provisions in the Taxpayer 
Relief Act of 1997, see I.A.2. above.

                     3. health care quality reform

    The Committee focused considerable attention on the issue 
of health care quality. The Committee held hearings on health 
care quality issues on February 26, March 3, 24, and April 23, 
1998. A bill that was developed by the Republican Health Care 
Quality Task Force, H.R. 4250, the ``Patient Protection Act of 
1998,'' passed the House on July 24, 1998. The Senate did not 
consider the bill.
    In general, H.R. 4250 would establish new protections for 
patients. Specifically, the bill would provide for improved 
patient access to unrestricted medical advice, emergency 
medical care, obstetric and gynecological care, and pediatric 
care. In addition, the bill would provide for improved patient 
access to information regarding plan coverage, managed care 
procedures, health care providers, and quality of medical care. 
Procedures for initial coverage determinations, internal 
appeals, reconsideration of initial review decisions, and 
options for alternative dispute resolution are also included. 
The bill also would provide federal standards to assure the 
confidentiality of protected health information, expands the 
availability of medical savings account, and limits medical 
liability.
    In addition, H.R. 4328, the Omnibus Consolidated and 
Emergency Supplemental Appropriations for Fiscal Year 1999 
includes a provision which in general requires group health 
plans and health insurance issuers in the individual market to 
cover breast reconstructive surgery following mastectomies. The 
bill also includes a provision which eliminates the use of 
funds for the promulgations or adoption of any final standard 
for purposes of a unique health identifier for individuals (as 
defined by the Health Insurance Portability and Accountability 
Act of 1996) until legislation is enacted specifically 
approving the standard.

                          4. home health care

    The Subcommittee held a hearing on the issue of Medicare 
home health care services on August 6, 1998. On September 15, 
1998, Subcommittee Chairman Bill Thomas introduced H.R. 4567, 
the ``Medicare Home Health Care Interim Payment System 
Refinement Act of 1998'' to amend title XVIII of the Social 
Security Act to refine the Medicare home health care interim 
payment system. The Subcommittee favorably reported the bill, 
as amended, to the full Committee on September 15, 1998. The 
Full committee reported the bill to the House on October 5, 
1998 (H. Rept. 105-773). The House passed the bill, as amended, 
on October 10, 1998 by a 412-2 vote. The Senate did not 
consider the bill. Similar provisions was included in the 
Omnibus Consolidated and Emergency Supplemental Appropriation 
For Fiscal Year 1999.
    The home health provisions make refinements to Medicare's 
interim payment system and delay the scheduled across-the-board 
15 percent reduction in limits to coincide with the 
implementation of the prospective payment system on October 1, 
2000. The refinements include increases in the per visit limits 
which apply to all agencies and increases in the per 
beneficiary limits for the lowest cost agencies. Some of the 
costs of these provisions are offset by decreases in the market 
basket update. In addition, the Health Care Financing 
Administration (HCFA) is required to report to Congress by 
January 1, 1999, on a timeline for implementing a prospective 
payment system and a list of related research. The General 
Accounting Office is asked to audit the HCFA's expenditures 
related to the development of a prospective payment system.

                 5. medicare payment advisory committee

    On July 31, 1998, Rep. Jim Nussle introduced H.R. 4377 to 
amend title XVIII of the Social Security Act to expand the 
membership of the Medicare Payment Advisory Commission from 15 
to 17 members. The Subcommittee favorably reported the bill to 
the full Committee on September 15, 1998. The full Committee 
reported the bill to the House on October 5, 1998 (H. Rept. 
105-774, Pt. 1). A similar provision was included in H.R. 4567 
which passed the House on October 10, 1998, and in H.R. 4328, 
the Omnibus Consolidated and Emergency Supplemental 
Appropriation For Fiscal Year 1999.

                     6. HIPAA TECHNICAL CORRECTION

    On March 19, 1998, Health Subcommittee Chairman Bill Thomas 
introduced H.R. 3511 to amend title XI of the Social Security 
Act to allow the Inspector General of the Department of Health 
and Human Services to develop criteria for making limited 
exceptions to the current fraud and abuse laws. H.R. 3511 would 
amend HIPAA in several ways: First, the Inspector General of 
the Health and Human Services Department could create 
exceptions--known as ``safe harbors''--to the fraud and abuse 
rules so as to exclude specific payment practices from the 
HIPAA provisions. Second, H.R. 3511 would allow medical 
facilities to obtain advisory opinions from the Inspector 
General. These opinions would provide legal and regulatory 
guidance to medical facilities as to whether payment of 
coinsurance or other premiums violates HIPAA's fraud and abuse 
provisions. Finally, H.R. 3511 would also give the Secretary of 
HHS interim final rulemaking authority which would speed up the 
process whereby these safe harbors and advisory opinions become 
effective. The Subcommittee favorably reported the bill to the 
full Committee on September 15, 1998. The full Committee 
ordered the bill reported to the House on September 18, 1998 
(H. Rept. 105-772, Pt. 1). A similar provision was included in 
the modified version of H.R. 4567 (see above). A similar 
provision was included in the Omnibus Consolidated and 
Emergency Supplemental Appropriation For Fiscal Year 1999.

                    7. VETERANS MEDICARE SUBVENTION

    On May 12, 1998 Health Subcommittee Chairman Bill Thomas 
introduced H.R. 3828, the Veterans Medicare Access Improvement 
Act of 1998. H.R. 3828 would establish a subvention program for 
low-income veterans and a demonstration project for other 
veterans so that the Department of Veterans Affairs may offer 
certain veterans comprehensive Medicare health care services. 
Subvention is the term given to proposals which would permit 
the U.S. Department of Veterans Affairs to receive 
reimbursement from the Medicare trust funds for care provided 
to Medicare-eligible beneficiaries at VA medical facilities. 
Current law generally prohibits other government agencies from 
receiving reimbursements for providing Medicare-covered 
services to Medicare-eligible veterans. The Subcommittee 
favorably reported the bill to the full Committee on May 12, 
1998. The full Committee ordered the bill reported to the House 
on May 14, 1998. The bill was reported on October 7, 1998, (H. 
Rept. 105-793, Pt. 1). A similar provision was included in the 
modified version of H.R. 4567 (see above).

            E. Legislative Review of Social Security Issues

         1. ``TICKET TO WORK AND SELF-SUFFICIENCY ACT OF 1998''

    Since 1995, the Subcommittee on Social Security has held 
five hearings, including testimony from 28 witnesses, 
addressing needed Social Security program changes to encourage 
individuals with disabilities to work. The Subcommittee held a 
two-part hearing on July 23 and July 24, 1997, to specifically 
address barriers preventing Social Security disability 
recipients from returning to work. The hearing included 
testimony from the Administration, the U.S. General Accounting 
Office, beneficiaries, rehabilitation experts, and providers of 
services.
    On March 11, 1998, Subcommittee on Social Security Chairman 
Bunning, on behalf of himself and Mrs. Kennelly, introduced 
H.R. 3433, the ``Ticket to Work and Self-Sufficiency Act of 
1998.'' The Subcommittee held a hearing on March 17, 1998, and 
received testimony in support of H.R. 3433 from individuals 
with disabilities, advocates for the disabled, and providers of 
services. The Subcommittee on Social Security ordered favorably 
reported to the full Committee H.R. 3433, as amended, on March 
25, 1998.
    The bill would establish a Ticket to Work and Self-
Sufficiency Program in the Social Security Administration to 
provide Social Security and Supplemental Security Income (SSI) 
disability beneficiaries with meaningful opportunities to 
return to work. The Program would pay employment networks for 
results, rather than for the cost of their services, and would 
share in the savings to the Trust Funds and general revenues. 
An expert Advisory Panel would be created to advise the 
Commissioner and report to the Congress on Program 
implementation. SSA would be required to establish a corps of 
work incentive specialists and would be required to conduct a 
demonstration project to study the effects of replacing the 
current $500 substantial gainful activity level with a $1 
reduction in Social Security disability insurance (SSDI) 
payments for every $2 in earnings over a determined level. The 
General Accounting Office (GAO) would be required to study the 
effects of existing tax credits and other employer incentives 
on employers hiring and retaining individuals participating in 
the Program. In addition, GAO would be required to evaluate the 
coordination of SSDI and SSI programs as they relate to 
individuals who are eligible for both programs. The bill would 
also provide an additional two-year extension of Medicare. 
Other provisions include incentive payments to correctional 
institutions for reporting incarceration of SSDI beneficiaries, 
replacing the criteria for barring SSDI benefits toprisoners, 
and a number of other technical amendments.
    On May 18, 1998, the full Committee favorably reported, 
H.R. 3433, as amended, to the House (H. Rept. 105-537).
    On June 4, 1998, the House passed H.R. 3433. No action was 
taken by the Senate.

    2. MISCELLANEOUS SOCIAL SECURITY PROVISIONS IN OTHER LEGISLATION

a. ``National Dialogue on Social Security Act of 1998''

    On April 1, 1998, the Committee on Ways and Means held a 
hearing to determine the merits of establishing a bipartisan 
panel of experts to design long-range Social Security reform 
and how best to engage the American public in the process. The 
Committee received the view of current and former Members of 
Congress, Social Security experts, and various stakeholder 
organizations.
    On March 25, 1998, Chairman Archer, on behalf of himself 
and Subcommittee on Social Security Chairman Bunning and Mr. 
Kasich, introduced H.R. 3546, the ``National Dialogue on Social 
Security Act of 1998,'' to provide for a national dialogue on 
Social Security and to establish the Bipartisan Panel to Design 
Long-Range Social Security Reform.
    On April 23, 1998, the Committee reported to the House H.R. 
3546, as amended (H. Rept. 105-493). On April 29, 1998, the 
House passed the bill, as amended. No action was taken by the 
Senate.

b. Protect Social Security account

    Since March of 1997, the Subcommittee on Social Security 
has held a series of 11 hearings, including testimony from 88 
witnesses, addressing the long-range insolvency of the Social 
Security system under present law and options for reform. 
Witnesses included; Members of Congress, the Commissioner of 
Social Security, representatives from the 1994-96 Advisory 
Council on Social Security, members of the Social Security 
Board of Trustees, representatives from the General Accounting 
Office, representatives from the Congressional Research 
Service, economists, social insurance policy experts, 
academics, representatives from business and labor groups, 
investment and financial experts, representatives from State 
and local government groups, advocates for people affected by 
proposed changes to the system, experts on social insurance 
programs in other countries and public opinion experts.
    On March 5, 1998, Subcommittee on Social Security Chairman 
Bunning introduced H.R. 3351, a bill to establish a ``Protect 
Social Security Account'' in the Treasury into which would be 
deposited 100 percent of the unified budget surplus until such 
time as a solution to Social Security's long-term problem is 
enacted. On September 17, 1998, Mr. Rangel introduced H.R. 
3207, a bill to establish a ``Save Social Security First 
Reserve Fund'' in the Treasury into which would be deposited 
100 percent of the Social Security surplus until such time as a 
solution to Social Security's long-term problem is enacted.
    On September 16, 1998, Chairman Archer introduced H.R. 
4578, a bill to establish a ``Protect Social Security Account'' 
in the Treasury into which would be deposited 90 percent of the 
unified budget surplus until such time as a solution to Social 
Security's long-term problem is enacted.
    On September 17, 1998, the full Committee ordered favorably 
reported, H.R. 4578, a bill to establish the ``Protect Social 
Security Account,'' by a voice vote with a quorum present.
    On September 23, 1998, the full Committee reported to the 
House H.R. 4578, as amended (H. Rept. 105-738). On September 
25, 1998, the House passed the bill, as amended (the amendment 
included a provision that H.R. 4578 would be included in H.R. 
4579). No action was taken by the Senate.

c. ``Taxpayer Relief Act of 1998''

    On September 16, 1998, Chairman Archer introduced H.R. 
4579, the ``Taxpayer Relief Act of 1998,'' which included 
provisions that would gradually raise the Social Security 
earnings limit for those between full retirement age (currently 
age 65) and age 70 beginning in calendar years 1999 to $39,750 
by 2008. Senior citizens between full retirement age (currently 
age 65) and 70 who earn over the given earnings limit for the 
year would continue to lose $1 in benefits for every $3 earned 
over the limit. After 2008, the annual exempt amounts would be 
indexed to growth in average wages.
    The cost would be offset by recomputation of benefits 
resulting from earnings in the year after a worker reaches 
normal retirement age (currently age 65) and later would be 
reflected in the recipient's benefit check, effective with the 
January of the second year after the year of the earnings. An 
exception would be provided for recipients who have one or more 
``zero'' years of earnings in their wage averaging computation. 
Earnings would continue to be credited as under current law for 
purposes of establishing entitlement. The bill would be 
effective for earnings beginning in 1998.
    On September 23, 1998, the full Committee reported to the 
House H.R. 4579, as amended (H. Rept. 105-739). On September 
26, 1998, the House passed the bill as amended. No action was 
taken by the Senate.

d. Tax extension legislation

    On October 8, 1998, Chairman Archer introduced H.R. 4738, 
which included a provision to allow a limited window of time 
(January 1 through March 31, 1999) for States to modify 
existing State agreements to exempt students (including 
graduate assistants) from Social Security coverage who are 
employed by a public school, university, or college in a non-
exempted State. The exemption would be effective for services 
performed after June 30, 2000.
    On October 9, 1998, the Committee ordered favorably 
reported, as amended, H.R. 4738, (H. Rept. 105-817). On October 
12, 1998, the House passed H.R. 4738, as amended. The student 
exemption was later included in H.R. 4328, the ``Omnibus 
Consolidated and Emergency Supplemental Appropriations Act of 
1999,'' which was signed into law on October 21, 1998 (P.L. 
105-277).

e. Omnibus appropriations

    H.R. 4328, the ``Omnibus Consolidated and Emergency 
Supplemental Appropriations Act of 1999,'' contained two Social 
Security provisions. The first provision allows a limited 
window of time (January 1 through March 31, 1999) for States to 
modify existing State agreements to exempt students (including 
graduate assistants) from Social Security coverage who are 
employed by a public school, university, or college in a non-
exempted State. The exemption would be effective for services 
performed after June 30, 2000. (See d. above)
    A second provision amended the Social Security Act anti-
assignment section to allow the withholding of taxes from any 
benefit pursuant to the Internal Revenue Code of 1986. It also 
allocated funding for the Social Security Administration to 
administer the tax-withholding provision. (This technical 
amendment provision has been included in the following House 
passed bills: H.R. 4039, the ``Social Security Miscellaneous 
Amendments Act of 1996,'' H.R. 1048, the ``Welfare Reform 
Technical Corrections Act of 1997,'' H.R. 2015, ``The Balanced 
Budget Act of 1997,'' and H.R. 3433, ``Ticket to Work and Self-
Sufficiency Act of 1998.'')
    The President signed H.R. 4328 into law on October 21, 1998 
(P.L. 105-277).

f. ``Federal Retirement Coverage Correction Act''

    H.R. 3249, ``The Federal Retirement Coverage Correction 
Act'' as introduced was referred to the Committee on Ways and 
Means. Social Security provisions would provide that (1) 
retroactive earnings are credited and the Social Security Trust 
Funds are made whole in situations where individuals change to 
one of the retirement systems that provide Social Security 
coverage, (2) necessary conforming changes are made to the 
coverage provisions of the Social Security Act, and (3) the 
Commissioner of Social Security has the authority to: receive 
necessary information from agencies, notify the Secretary of 
the Treasury to transfer taxes paid as a result of elections 
under H.R. 3249 to the Social Security Trust Funds, and to 
correct earnings records.
    On July 20, 1998, the full Committee reported to the House 
H.R. 3249, as amended (H. Rept. 105-625, Pt. 1). On July 20, 
1998, the House passed the bill, as amended. No action was 
taken by the Senate.

            F. Legislative Review of Human Resources Issues

                   1. THE BALANCED BUDGET ACT OF 1997

    For a discussion of the human resources provisions in the 
Balanced Budget Act of 1997, see I.A. above.

             2. CHILD PROTECTION, FOSTER CARE, AND ADOPTION

a. The Adoption and Safe Families Act of 1997 (ASFA)

    H.R. 867, the Adoption and Safe Families Act of 1997 
establishes significant new procedural requirements to promote 
child safety, to shorten the time a child spends in foster 
care, and to expedite the adoption process. In addition, the 
law reauthorizes and expands an existing program that provides 
States with funding for their child protection programs. The 
bill makes a child's health and safety the paramount concern in 
any efforts made by States to preserve or reunify families. The 
legislation establishes exceptions to the requirement that 
States make ``reasonable efforts'' to keep families together. 
These exceptions include parents who have killed another of 
their children, committed felony assault against a child, or 
had their parental rights to another child involuntarily 
terminated. In addition, the new law establishes that efforts 
to keep families together are not required if the court finds 
that a parent had subjected the child to ``aggravated 
circumstances''. Aggravated circumstances are defined by the 
States but the new law cites abandonment, torture, chronic 
abuse, and sexual abuse as examples. The new law requires 
States to initiate proceedings to terminate parental rights 
after a child has been in foster care for 15 of the previous 22 
months, except in specified circumstances. States are 
prohibited from postponing or denying adoptionswhile looking 
for an in-State placement when a suitable out-of-State adoption is 
possible.
    The legislation also contains provisions that provide 
States with additional resources from the Federal government. 
These include financial incentive payments to States that 
increase the number of adoptions from foster care, a 
requirement that States and the Federal government provide 
health insurance coverage to adopted children with special 
needs who are not eligible for Federal subsidies, and a 
reauthorization and expansion of the family preservation 
program.
    Mr. Camp and Mrs. Kennelly introduced H.R. 867 on February 
27, 1997; also on February 27, 1997, the Subcommittee conducted 
a hearing on the legislation. While commenting on the specific 
provisions of the Camp/Kennelly legislation, witnesses 
discussed methods of reducing the length of time children spend 
in foster care. A second hearing on the legislation was 
conducted on April 8, 1997. On April 23, 1997 the Subcommittee 
reported H.R. 867 to the full Committee, and on April 28 the 
full Committee ordered the bill reported to the House (H. Rept. 
105-77).
    The House approved the legislation with amendments on April 
30, 1997. On November 8, 1997, the bill passed the Senate with 
an amendment. The House agreed to the Senate amendment with an 
amendment on November 13, 1997. The Senate agreed to the House 
amendment on November 13, 1997. The legislation was signed into 
law by the President on November 19, 1997 (P.L. 105-89).

b. Child protection penalty provision in the Child Support Performance 
        and Incentive Act of 1998

    Enacted as part of H.R. 2487, the Child Support Performance 
and Incentive Act of 1998 (see below), this provision 
terminated the penalty for violating the Adoption and Safe 
Families Act provision on adoption across jurisdictional lines 
and substituted a penalty equal to 2 percent of the Federal 
funds for foster care and adoption under Title IV-E of the 
Social Security Act for the first violation, 3 percent for the 
second violation, and 5 percent for the third and subsequent 
violations. A technical correction regarding how to calculate 
the adoption incentive payment was also made.
    The Subcommittee held two hearings on the provisions of the 
Adoption and Safe Families Act on February 27 and April 8, 
1997. These hearings addressed strategies for shortening the 
time that children spend in foster care, implementation of the 
interethnic adoption statute that would eliminate racial 
barriers to adoption, and the effectiveness of services 
designed to keep families together.

                           3. welfare reform

a. Technical correction provisions

    The 1996 welfare reform law (P.L. 104-193) substantially 
reformed the nation's welfare policy. The scope of this 
legislation was exceptionally broad, amending most of the 
social programs under the Subcommittee's jurisdiction, often 
substantially. Because of this broad scope, and because other 
legislation, notably the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996 (division C of P.L. 104-
208), contained provisions affecting the welfare reform 
legislation, both the Administration and Congress anticipated 
the need to prepare follow-up legislation to correct drafting 
errors, amend incompatibilities, clarify ambiguities, and make 
minor changes to better achieve the purposes of the original 
legislation. Section 113 of the welfare reform law required the 
Secretary of Health and Human Services and the Commissioner of 
the Social Security Administration to submit to the Committee a 
legislative proposal for technical and conforming amendments. 
Thus the Subcommittee crafted a bipartisan technical 
corrections bill to make technical and conforming amendments, 
based on the Administration's December 1996 proposal. This 
legislation contained provisions applying to all the major 
programs amended by the welfare reform law.
    The Subcommittee also solicited and received 
recommendations for technical amendments from interested 
individuals and groups. Only those recommendations judged to be 
of a technical nature and that were agreed to by both 
Republicans and Democrats in the House and Senate and by the 
Administration were included in the Committee bill; in all, 
more than 200 technical corrections and minor amendments were 
incorporated into the Committee bill.
    The Subcommittee held a hearing February 26, 1997 on 
technical amendments to the welfare reform law. Based in part 
on testimony from this hearing, Chairman Shaw and Mr. Levin 
introduced the welfare reform technical corrections bill (H.R. 
1048) on March 12, 1997. The Subcommittee considered H.R. 1048 
and ordered it favorably reported, as amended, on April 9, 
1997. The full Committee considered and ordered the legislation 
reported, as amended, on April 23, 1997, and reported it on 
April, 23, 1998 (H. Rept. 105-78, Pt. 1). The legislation was 
added to H.R. 2015, the Balanced Budget Act of 1997, which was 
signed into law by the President on August 5, 1997 and became 
Public Law 105-33. (For further information on the Balanced 
Budget Act, see I.A. above.)

b. Fatherhood initiative

    One purpose of the 1996 welfare reform law is to encourage 
the formation of two-parent families and, if possible, to 
foster marriage especially among needy parents with children. 
Studies have consistently shown that across a broad variety of 
social indicators, including avoidance of poverty, educational 
attainment, and self-support as an adult,children raised by 
single parents--and especially by young, poor mothers--fare worse than 
children raised in two-parent, married households.
    To counter these risks and promote the goals of welfare 
reform, on March 3, 1998 Chairman Shaw, along with several 
other Members of the Subcommittee, introduced legislation (H.R. 
3314) designed to reinvigorate families by reintroducing 
fathers to family life, especially in needy communities. H.R. 
3314, the ``Fathers Count Act of 1998,'' would provide $2 
billion in block grants to States over 5 years to support 
primarily private-sector, including faith-based, programs 
designed to achieve several purposes: (1) promoting marriage 
among parents; (2) helping poor and low-income fathers 
establish positive relationships with their children and the 
children's mothers; (3) promoting responsible parenting; and 
(4) increasing family income apart from government benefits.
    The Subcommittee held a July 30, 1998 hearing to examine 
the social, economic, and legal difficulties faced by unmarried 
fathers of children on welfare, receiving testimony from 
fathers whose children are on welfare, individuals who have 
designed and conducted programs for low-income fathers, 
advocates for fathers, and researchers.
    No further action was taken.

                      4. child support enforcement

    H.R. 3130, the Child Support Performance and Incentive Act 
of 1998 has two major provisions. One provision modifies a 
penalty procedure that has been part of the child support 
program almost since its inception. Specifically, the statute 
imposes the severe penalty of complete termination of child 
support funds (and eventually of other funds as well) on States 
for violations of the State plan section of the statute. One 
requirement of the State plan section mandates that States 
implement an approved and statewide automatic data processing 
system to conduct its child support enforcement program by 
October 1, 1997. As it became evident that several States would 
find it impossible to meet the October 1, 1997 deadline (even 
though this deadline had already been extended once by 
Congress), the Committee decided that it would be best to 
provide an alternative penalty procedure rather than either 
change the deadline again or completely terminate the child 
support funding of several states. After meeting with child 
advocates, State officials, representatives of the Clinton 
Administration, and various officials from the House and 
Senate, Chairman Shaw and Mr. Levin developed a bill designed 
to balance the need of the Federal government to require States 
to establish automatic data processing systems in a timely 
fashion and the need of States to have additional time to 
design and implement their systems. The major feature of the 
bill, was to require States to pay 4, 8, 16, 25, and 30 percent 
of their Federal child support funds for the first through 
fifth and subsequent years, respectively, that they remain in 
violation of Federal data processing requirements. The bill 
also grants a 75 percent penalty forgiveness for the year in 
which States complete their data systems. In addition, the 
legislation contains a procedure for States to develop a data 
system that is not a single, Statewide system; this procedure 
can be approved by the Secretary of Health and Human Services 
only for States that submit detailed plans and justifications 
for such alternative data systems.
    The second major provision of the bill is a complete reform 
of the incentive system that has been a part of the child 
support program since its inception in 1975. The goal of the 
incentive system is to provide financial rewards to States for 
good performance in conducting their child support program. The 
major problem with the previous incentive system was that it 
provided a substantial portion of incentive payments 
irrespective of State performance. In view of this problem, the 
1996 welfare reform law directed the Secretary of HHS to 
propose a new incentive system in a report to Congress. Once 
the Secretary's report was received in March 1997, the 
Subcommittee formed a bipartisan work group that developed a 
legislative proposal in cooperation with the Administration. 
The new law provides States with payments based on their actual 
performance in establishing paternity, establishing child 
support orders, collecting child support payments, and 
conducting efficient child support programs.
    In addition to these two major provisions, the Child 
Support Performance and Incentive Act of 1998 contains a minor 
provision on adoption and foster care (see 4 above).
    The Subcommittee conducted extensive hearings on both major 
provisions of this legislation. Regarding the new child support 
incentive system, two hearings were conducted. First, after 
receiving the Administration's report and proposal for a new 
incentive system, the Subcommittee conducted a hearing on March 
20, 1997 that featured the reactions of State administrators, 
child advocates, and other interested parties to the 
Administration proposal. Chairman Shaw and Mr. Levin then 
formed a bipartisan work group including representatives from 
the Administration that worked for several months to develop 
the Subcommittee legislation. After a hearing on September 10 
that addressed major features of the legislative proposal, a 
bill, H.R. 2487, was introduced on September 17, 1997. The 
Subcommittee approved the bill without amendment on September 
18; the full Committee approved the bill without amendment on 
September 23, 1997, and reported the bill on September 26, 1997 
(H. Rept. 105-272). The bill was then approved on the House 
floor on September 29, 1997. All votes during committee and 
floor consideration were by voice vote.
    The penalty provision of the legislation was developed 
after several months of negotiations with the States, the 
Administration, and the Senate, Chairman Shaw and Mr. Levin 
introduced a bill, H.R. 3130, on January 28, 1998 and then 
conducted a hearing on its provisions on January 29, 1998 to 
get comments from witnesses concerned with childsupport 
enforcement. Because the Senate had not yet acted on H.R. 2487, the 
Subcommittee's incentive bill was combined with the penalty bill to 
create the Child Support Performance and Incentive Act of 1998, as 
amended. The Subcommittee reported H.R. 3130, as amended to the full 
Committee on February 3, 1998; full Committee approval followed on 
February 25, 1998, as amended. The bill was reported on February 27, 
1998. The bill was approved on the House floor with amendment on March 
5, 1998.
    The Senate passed the House bill on April 2, 1998, with 
amendments. The House disagreed to the Senate amendments and 
asked for a conference on April 23, 1998. The Senate insisted 
on its amendments and agreed to a conference on May 20, 1998. 
The House then agreed to the Senate amendments with an 
amendment of its own on June 25, 1998. The Senate agreed to the 
House amendment on June 26, 1998. The legislation was approved 
by the President on July 16, 1998 (P.L. 105-200).

                    5. supplemental security income

    For a discussion of SSI provisions in the Balanced Budget 
Act of 1997, see I.A. above.

a. Ricky Ray Hemophilia Relief Fund Act of 1997

    On April 22, 1998, the full Committee approved H.R. 1023, 
the Ricky Ray Hemophilia Relief Fund Act of 1997. H.R. 1023 
provides for ``compassionate payments'' to individuals with 
blood-clotting disorders such as hemophilia who contracted 
human immunodeficiency virus (HIV) from tainted blood products. 
Authorization of the $750 million federal fund to make payments 
of $100,000 to eligible individuals who contracted HIV from the 
tainted blood products is under the jurisdiction of the 
Committee on the Judiciary; the Committee on Ways and Means has 
jurisdiction over how payments to eligible individuals would be 
treated for purposes of determining eligibility and benefit 
levels under the SSI program. Without Committee action, Federal 
payments under H.R. 1023 as well as payments from a class 
action lawsuit brought against pharmaceutical companies that 
supplied tainted blood would be treated as income or resources 
under SSI. As a result, most individuals receiving such 
payments would either lose or experience a sharp reduction in 
their SSI benefit payments; the Committee's action is designed 
to prevent this loss of benefits. The bill was reported on May 
7, 1998.
    H.R. 1023 was approved by the House on May 19, 1998 and by 
the Senate on October 21, 1998; the bill was signed into law on 
November 12, 1998 (P.L. 105-369).

b. Eligibility for certain children receiving charitable gifts

    H.R. 4558, the Noncitizen Benefit Clarification and Other 
Technical Amendments Act (P.L. 105-306) (see below), includes a 
provision that requires SSA to disregard cash gifts of up to 
$2,000 given by non-profit foundations to children with life-
threatening conditions who are applying for or receiving SSI 
benefits.

                      6. unemployment compensation

    On April 24, 1997, the Subcommittee on Human Resources held 
a hearing on unemployment compensation (UC) proposals. The 
Subcommittee examined proposals to expand State flexibility in 
administering the UC system by assuring State control over 
``base periods'' used to determine whether a worker's 
employment record is sufficient to warrant benefits (thus 
overturning an Illinois Federal court ruling in the Pennington 
case). Other topics included the way UC affects Native 
Americans, actors, poll workers, and prisoners. The 
Subcommittee also considered proposals supported by several 
States and business groups to reform the administrative 
financing of the UC system (for further discussion see below). 
Witnesses included Representatives Bill Thomas, Phil English, 
Fred Upton, Sam Farr, and John Shadegg; State labor and 
employment officials from Georgia, Ohio, Illinois, and 
California; labor policy experts; business leaders; and 
representatives of Native American tribes, religious schools, 
and actors.
    Several provisions considered at this hearing were included 
in the Balanced Budget Act of 1997 (P.L. 105-33). For a 
discussion of these provisions, see I.A.1. above.

a. Permanent authorization of the Self-Employment Assistance Program

    H.R. 4558, the Noncitizen Benefit Clarification and Other 
Technical Amendments Act (P.L. 105-306)(see below), permanently 
extended the authorization of the Self-Employment Assistance 
(SEA) program, which is designed to help unemployed workers 
become self-employed.

b. Administrative financing reform

    On June 23, 1998, the Subcommittee held a hearing on H.R. 
3684, the ``Employment Security Financing Act of 1998'' 
introduced by Chairman Shaw on April 1, 1998. The bill proposed 
reforms in the administrative financing of the UC system 
increasing State flexibility and accountability, cutting 
business paperwork, improving efficiency in labor markets, 
cutting Federal payroll taxes, and financing more and better 
employment services for jobless workers. Witnesses included 
Grace A. Kilbane of the Department of Labor, who discussed an 
alternative proposal (H.R. 3697) introduced by Mr. Levin and 
Mr. English. Other witnesses included State legislators and 
labor officials from Ohio, New Hampshire, and Florida, labor 
policy experts, and business leaders. Nofurther action was 
taken on the bill.

                      7. benefits for noncitizens

    a. For a discussion of noncitizen provisions in the 
Balanced Budget Act of 1997, see I.A.1. above.

b. Provisions in the Noncitizen Benefit Clarification and Other 
        Technical Amendments Act of 1998

    The Committee considered legislation (H.R. 4558) providing 
for certain technical and substantive program changes. The 
major purpose of the legislation introduced by Chairman Shaw 
and Mr. Levin, is to extend SSI benefits of certain 
``nonqualified'' aliens who were receiving benefits before the 
enactment of welfare reform. This group of about 12,000 aliens 
would have become ineligible for benefits after October 1, 1998 
unless Congress acted. H.R. 4558 permanently extended the SSI 
benefits of this group, although the Subcommittee expects the 
Social Security Administration to continue reviewing their 
cases to determine whether some are ineligible for benefits as 
illegal aliens.
    In addition to this major provision, the Subcommittee 
proposal also: extends an expiring unemployment insurance 
program designed to help unemployed workers become self-
employed; allows States to offset any penalties incurred 
because of failure to meet Federal automatic data processing 
requirements if they achieve superior performance in their 
child support enforcement program; allows noncitizens to renew 
professional licenses without being present in the United 
States; clarifies that in some circumstances States have up to 
3 years to obligate funds under the Welfare-to-Work program; 
requires SSA to disregard cash gifts of up to $2,000 given by 
non-profit foundations to children with life-threatening 
conditions; and allows SSA to reduce Social Security benefits 
of individuals to recover overpayments in the SSI program.
    During the 105th Congress, the Subcommittee held numerous 
hearings on the several provisions in H.R. 4558, including: (1) 
on extending public benefits for certain aliens, a February 13, 
1997 hearing on the President's FY 1998 budget proposal and a 
February 26, 1997 hearing on various technical corrections to 
the welfare reform law affecting noncitizens; (2) on extending 
UC Self-Employment Assistance programs, April 24, 1997 and June 
23, 1998 hearings; (3) on reducing child support penalties, 
hearings on March 20, 1997, September 10, 1997, January 29, 
1998, May 19, 1998, June 12, 1998, and August 24, 1998; (4) on 
the treatment of welfare-to-work funds, a February 13, 1997 
hearing on the President's FY 1998 budget proposal on welfare-
to-work funding; and (5) on SSI benefits for certain children 
with life-threatening conditions and on enhancing the recovery 
of SSI overpayments, a joint hearing with the Subcommittee on 
Social Security on March 12, 1998, and a hearing on various SSI 
reform proposals on April 21, 1998.
    On September 15, 1998, the Subcommittee reported the 
legislation to the full Committee. On September 18, 1998, the 
full Committee considered the legislation, and reported it to 
the House, as amended, on September 22,1998 (H. Rept. 105-735, 
Pt. 1). On September 23, 1998, H.R. 4558, as amended, passed 
the House. The Senate approved H.R. 4558 on October 8, 1998, 
and the President signed it into law on October 28, 1998 (P.L. 
105-306).

                  G. Legislative Review of Debt Issues

    On June 12, 1998, as part of its budget reconciliation 
recommendations, the Committee recommended permanent increase 
in the public debt limit to $5.95 trillion. That increase was 
included in H.R. 2015, the Balanced Budget Act of 1997.
    On June 24, 1998, the Committee held a hearing on the debt 
management practices of the U.S. Department of the Treasury in 
an era of budget surpluses.

                          II. Oversight Review

                          A. Oversight Agenda

                       Committee on Ways and Means,
                             U.S. House of Representatives,
                                 Washington, DC, February 12, 1997.
Hon. Dan Burton,
Chairman, Committee on Government Reform and Oversight, Rayburn House 
        Office Building, Washington, DC.
Hon. William M. Thomas,
Chairman, Committee on House Oversight, Longworth House Office 
        Building, Washington, DC.
    Dear Chairman Burton and Chairman Thomas: In accordance 
with the requirements of Clause 2 of Rule X of the rules of the 
House of Representatives, the following is a list of oversight 
hearings and other oversight-related activities which the 
Committee on Ways and Means and its subcommittees plan to 
conduct during the 105th Congress. The list has been broken 
down by Subcommittee, and is prioritized to reflect the likely 
order in which the listed activities are expected to occur. 
This list is not intended to be exclusive; the Committee 
anticipates that additional oversight activities will be 
scheduled as issues arise or as time permits.

                             full committee

    1. Tax Proposals in Administration's Fiscal Year 1998 
Budget. The full Committee will hold a series of hearings 
beginning on February 11, 1997, to examine the tax proposals in 
the Administration's Fiscal Year 1998 budget.
    2. Fundamental Tax Reform. The full Committee will hold a 
series of hearings throughout 1997 to examine the impact of 
replacing the current income tax with a broad-based consumption 
tax.

                         subcommittee on trade

    1. World Trade Organization (``WTO''). The Subcommittee 
will hold a hearing on February 26, 1997, to examine the 
outcome of the WTO Singapore Ministerial Meeting and the future 
direction of the WTO.
    2. Budget Issues. The Subcommittee will hold a hearing in 
early spring to consider biannual authorizations for the United 
States Trade Representative, the Customs Service, and the 
International Trade Commission as well as the portions of the 
budget of other agencies that have functions within the 
oversight jurisdiction of the Committee on Ways and Means, such 
as the Commerce Department, State Department, etc.
    3. Trade Policy. The Subcommittee will hold a hearing in 
early spring to consider U.S. trade policy objectives in Latin 
America, in the Pacific Basin, with Japan, and with newly 
emerging markets; to review anti-competitive practices 
(particularly bribery and corruption) as it affects trade 
agreements; and to examine the extent to which benefits to U.S. 
businesses derived from existing agreements to which the United 
States is a party may be eroded by agreements to which the 
United States is not a party, such as MERCOSUR.
    4. China Most-Favored Nation Status. The Subcommittee will 
hold a hearing in early summer to consider whether the annual 
renewal process of China's most-favored-nation status under the 
Jackson-Vanik provision continues to be effective or whether 
new options should be considered.
    5. North American Free Trade Agreement (``NAFTA'') 
Accession Issues. The Subcommittee will hold a hearing in the 
spring to consider appropriate mechanisms for approving the 
agreement by which Chile or other countries will accede to the 
NAFTA, either under the terms of a renewed broad fast-track 
authority, special authority for this particular agreement once 
concluded, or regular legislative procedures.
    6. NAFTA Overview. The Subcommittee will hold a hearing in 
early summer to consider the Administration's legislatively 
mandated overview of the NAFTA, due June 30, and to review its 
effectiveness and operation.
    7. Trade Expansion. The Subcommittee will hold a hearing in 
the spring to consider expansion of trade with sub-Saharan 
Africa.
    8. Antidumping and Countervailing Duty Issues. The 
Subcommittee will hold a hearing in late spring to examine 
regulations issued by the Department of Commerce concerning 
antidumping and countervailing duty investigations.
    9. Trade Adjustment Assistance Program. The Subcommittee 
will hold a hearing in the spring to consider possible 
extension or reforms of the Trade Adjustment Assistance 
program.
    10. Rules of Origin. The Subcommittee will hold a hearing 
in late summer/early fall to review rules of origin and country 
of origin marking to determine if they reflect current business 
production, sales, and distribution practices, and whether U.S. 
laws andpractices are effective in preventing unlawful 
transshipment.
    11. Oversight of Customs Laws and Practices. The 
Subcommittee will hold a hearing in late summer/early fall to 
review customs laws and practices to ensure that they are not 
creating an unnecessary burden and cost to U.S. producers and 
users; to review overtime and nighttime pay for Customs 
inspectors; and to review Customs' accounting for drug 
interdiction and investigation costs and verification of 
operational enhancements.

                         subcommittee on health

    1. Medicare Proposals in the President's Fiscal Year 1998 
Budget. The Subcommittee will hold a hearing on February 13, 
1997 to examine the Medicare proposals included in the 
President's FY 1998 budget. This hearing will assess the effect 
that the President's FY 1998 budget proposals will have on the 
financial stability of the Medicare Hospital Insurance (``HI'') 
Trust Fund and the Supplementary Medical Insurance (``SMI'') 
Trust Fund. It will also provide an opportunity to inquire 
concerning many aspects of the current operations of Medicare.
    2. Medicare Health Maintenance Organization (``HMO'') 
Payment Policy. The Subcommittee will hold a hearing on 
February 25, 1997 to examine Medicare HMO payment policy. This 
hearing will assess concerns about current HMO payment policy 
for Medicare beneficiaries and solutions to this issue offered 
by the President's FY 1998 budget, the Prospective Payment 
Assessment Commission and the Physician Payment Review 
Commission, and the Balanced Budget Act of 1995.
    3. Medicare Home Health and Skilled Nursing Facility 
Payment Policies. The Subcommittee will hold a hearing in late 
winter/early spring to examine reforms of payment policies for 
Medicare home health and skilled nursing facility services. 
Medicare home health and skilled nursing facility services are 
two of the fastest growing sectors of Medicare spending. 
Concern over potential fraud and abuse regarding these services 
and excessive or unjustified spending have resulted in reform 
proposals from the President in his FY 1998 budget, the 
Prospective Payment Assessment Commission, and in the Balanced 
Budget Act of 1995. The hearing will consider the extent of the 
problems cited by the General Accounting Office and others and 
review proposed solutions.
    4. Medicare HMO Regulation. The Subcommittee will hold a 
hearing in late winter/early spring to examine developments in 
Medicare HMO regulation. Medicare currently contracts with over 
350 HMOs. This hearing will examine the Health Care Financing 
Administration's (``HCFA'') oversight of these contracts to 
ensure quality of care and protect consumers. The hearing will 
compare oversight of contracts by (``HCFA'') with mechanisms 
for oversight of health plans providing coverage in the private 
sector.
    5. Medicare Payments for Teaching and Disproportionate 
Share Hospitals. The Subcommittee will hold a hearing in late 
winter/early spring to examine Medicare payments for Teaching 
and Disproportionate Share Hospitals. Medicare currently 
provides special payments to teaching hospitals and hospitals 
which provide care to a disproportionate share of indigents.
    Concerns have been raised about the levels of these payment 
adjustments and the correct relevance of the formula used for 
setting these payments to the goals of the law which 
established these payments. The hearing will assess these 
concerns and review proposals to resolve these concerns.
    6. Medicare Coverage for Preventative Benefits. The 
Subcommittee will hold a hearing in late winter/early spring to 
examine concerns which have been raised about the lack of 
Medicare coverage for certain preventative benefits. This 
hearing will review the cost effectiveness of benefits not 
currently covered and the implications of covering these 
benefits. It will specifically focus on the benefits which 
would be included in Medicare under the Medicare Preventive 
Benefit Improvement Act of 1997, H.R. 15.
    7. Medicare Oversight Reports. The Subcommittee will hold a 
hearing in late winter/ early spring to examine the annual 
reports of the Prospective Payment Assessment Commission 
(``ProPAC'') and the Physician Payment Review Commission 
(``PPRC'') (Late Winter, 1997). ProPac and PPRC provide 
guidance regarding Medicare to the Congress and its Committees 
with jurisdiction over the program. The Commissions annually 
review Medicare payment policy and make recommendations for 
improvement in these policies. This hearing will focus on 
concerns regarding hospital and physician payment.
    8. Medicare Coverage Policy. The Subcommittee will hold a 
hearing in the spring to examine Medicare coverage policy. 
Medicare policy regarding payment for new or changing 
treatments and procedures is not formally promulgated in 
regulation and does vary under certain circumstances between 
the carriers and intermediaries that actually pay for the 
services provided to Medicare beneficiaries. The hearing will 
examine current (``HCFA'') policy regarding coverage, and 
certain recent coverage decisions made by (``HCFA'').
    9. Medicare Provider Sponsored Organizations. The 
Subcommittee will hold a hearing in the spring to examine 
Medicare Provider Sponsored Organizations. Medicare currently 
allows beneficiaries to join HMOs which are state licensed and 
meet other regulatory requirements. Concerns have been raised 
by hospitals and physicians that theyare unable under current 
law to form such health plans. This hearing will examine the possible 
constraints to the organization of hospitals and physicians forming for 
the purpose of providing risk-based coverage for Medicare 
beneficiaries.
    10. Other Issues. Further hearings will be scheduled as 
time permits to examine certain additional aspects of Medicare 
program management.

                       subcommittee on oversight

A. Subcommittee hearings for 1997

    1. Taxpayer Advocate Report. The Subcommittee will hold a 
hearing on February 25, 1997, to examine the first annual 
report of the Internal Revenue Service (``IRS'') Taxpayer 
Advocate to the tax-writing committees. This report, which was 
mandated by the Taxpayer Bill of Rights 2 (``TBOR2''), the 
Taxpayer Advocate to identify initiatives undertaken to improve 
taxpayer services and IRS responsiveness, and to provide 
recommendations from the Problem Resolution Officers in IRS 
District Offices on ways to resolve problems which taxpayers 
experience in their dealings with the IRS. Any additional 
taxpayer protections proposed by the Administration as part of 
its FY 1998 budget submission to the Congress also will be 
evaluated as part of the hearing.
    2. IRS Fiscal Year 1998 Budget/1997 Tax Return Filing 
Season. The Subcommittee will hold a hearing in March to review 
the Administration's request for the IRS FY 1998 budget and the 
status of the 1997 tax return filing season. Among other 
things, the Subcommittee will review IRS's plans for 
contracting out development of Tax Systems Modernization to the 
private sector, IRS taxpayer services activities (including 
telephone tax assistance, walk-in service, distribution of 
forms and publications), and IRS lock-box operations. 
Information developed at the hearing will be used as background 
in preparing the full Committee's recommendations to the 
Appropriations Committee regarding funding priorities for the 
IRS for FY 1998.
    3. General Accounting Office (``GAO'') ``High Risk'' 
Report. The Subcommittee will hold a hearing in March to 
receive testimony from GAO and the Inspectors General from 
agencies under the Committee's jurisdiction, regarding high 
risk programs (i.e., programs vulnerable to waste, fraud or 
abuse) within the Committee's jurisdiction. The information 
obtained at this hearing about high risk programs (e.g., 
Medicare claims fraud, IRS Accounts Receivable) will lay the 
groundwork for additional oversight activities in the 105th 
Congress.
    4. TBOR2 Studies. TBOR2 required the Department of the 
Treasury and GAO to conduct studies evaluating: (1) problems 
that divorced taxpayers experience under the U.S. tax system's 
joint and several liability scheme; and (2) the manner in which 
IRS has implemented (or failed to implement) a system for 
comprehensive netting of interest on overpayments and 
underpayments and the policy and administrative implications of 
global interest netting. These studies were due on January 31, 
1997, and the Subcommittee will hold hearings in the spring on 
them as the first stage in developing recommendations to the 
full Committee.
    5. Low-Income Housing Credit. At the request of Chairman 
Archer, GAO has been conducting a study of how the States and 
the IRS administer the low-income housing credit. GAO is 
expected to issue a report presenting its findings in March and 
the Subcommittee will hold hearings in the spring with a view 
toward developing bipartisan recommendations to the full 
Committee for possible legislative revisions to the credit.
    6. Oversight of IRS Tax Debt Collection Issues. The 
Subcommittee will hold a hearing in late spring to continue the 
Subcommittee's examination of various tax debt collection 
issues, including status of the IRS Accounts Receivable Dollar 
Inventory, oversight of the ongoing IRS private debt collection 
pilot program, and oversight of the IRS's tax refund offset 
program, particularly as it relates to collection of past-due 
child support payments.
    7. Electronic Federal Tax Payment System. The Subcommittee 
will hold a hearing to examine the IRS's implementation of a 
provision in the North American Free Trade Agreement 
(``NAFTA'') required IRS to implement a nationwide system for 
receiving federal depository taxes electronically. The 
``Electronic Federal Tax Payment System (``EFTPS''), is 
intended to replace the paper coupon system used to pay federal 
depository taxes. IRS was required to phase-in EFTPS from 1994-
1999 and to collect a statutorily specified percentage of 
business taxes through electronic payment in each year. The 
third phase of the program, in which approximately 1.2 million 
small to medium-sized businesses will be required to enroll in 
EFTPS, is now being implemented. Concerns were raised last year 
about whether EFTPS was going to be operational in time to 
enroll the 1.2 million mandated taxpayers by the end of 1996. 
To address these concerns, a provision was included in the 
Small Business Jobs Protection Act of 1996 delaying the 
deadline for enrolling new mandated taxpayers in EFTPS until 
July 1, 1997. The Subcommittee will hold an oversight hearing 
in the spring to examine the implementation of EFTPS by the IRS 
and the costs and benefits to small businesses of this 
mandatory program.
    8. Impact of the Tax Laws on Land Use Decisions. The 
Subcommittee will continue its examination of the impact of the 
tax laws on land use decisions (a hearing was held on this 
issue in July, 1996), including evaluation of tax legislative 
proposals to establish conservation easements to preserve open 
spaces, encourage clean-up of ``brownfields fields'' 
(contaminated industrial sites), and encourage 
economicdevelopment in inner cities and rural areas. A Subcommittee 
hearing will be held in June, with follow-up hearings later in the year 
if necessary.
    9. Report of the National Commission on Restructuring the 
IRS. The National Commission on Restructuring the IRS is 
examining ways to restructure the IRS in order to improve the 
quality of the agency's service to the nation's taxpayers and 
to ensure greater accountability for financial management and 
meeting performance goals in connection with the agency's 
mission. The Commission Report is expected on July 1, 1997, and 
portions of the Commission's recommendations which are within 
the jurisdiction of Committee on Ways and Means will be 
evaluated by the Subcommittee in a July hearing.
    10. IRS Employee Misconduct Report. TBOR2 required the IRS 
to establish a system for monitoring taxpayer complaints about 
IRS employee misconduct, and to begin providing an annual 
report to the tax-writing committees beginning July 1, 1997, 
regarding the Service's handling of such cases. The 
Subcommittee will likely hold a hearing in July to review the 
report and the effectiveness of IRS' complaint monitoring 
system in improving IRS's accountability for addressing 
taxpayer complaints about IRS employee misconduct.

B. Other oversight subcommittee activities

    1. Year 2000 Crisis. The Subcommittee will meet with senior 
officials from agencies under the jurisdiction of the Committee 
on Ways and Means (e.g., IRS, Social Security Administration) 
to be briefed on their plans for managing the risks posed by 
the so-called ``Year 2000 crisis,'' the world-wide problem of 
computers needing to be reprogrammed for the next century. For 
the IRS, for example, millions of lines of computer code will 
need to be reprogrammed, posing significant risks for the 
stability of IRS's legacy computer systems.
    2. Earned Income Credit (EIC). The Subcommittee will 
continue its review of administrative issues relating to the 
EIC in meetings with officials from Treasury, IRS, and GAO, 
plus a cross-section of tax professionals. The Subcommittee 
will examine, among other things, recent IRS data regarding 
overpayments and other refund fraud problems, the adequacy of 
IRS efforts to assist taxpayers in claiming the EIC the status 
of IRS plans for addressing fraud and errors in the 1997 filing 
season, the complexity of eligibility rules for the credit and 
possible options for simplification, and the complexity of EIC 
forms and instructions and whether these can be simplified. A 
Subcommittee hearing may be scheduled as time permits.
    3. Small Business Tax Simplification. The Subcommittee is 
concerned that the current income tax system and the rules 
which have been designed to accurately measure income and track 
transactions undertaken by large corporations place an 
extraordinary compliance burden on the nation's small 
businesses. The Subcommittee is interested in reviewing options 
for simplifying those provisions of the Internal Revenue Code 
that are particularly burdensome for small business (e.g., 
rules relating to employee pension plans and stock ownership 
programs, rules governing the choice of accounting methods or 
conventions, the alternative minimum tax, etc.). Subcommittee 
hearings may be scheduled as time permits.
    4. Worker Classification Issues. The Subcommittee will 
continue its examination of issues relating to the 
classification of workers for tax purposes and the IRS's 
enforcement activities in this area. Two hearings were held by 
the Subcommittee on these issues in 1996. The Subcommittee also 
will examine the employee benefits aspects of worker 
classification, and explore the development of legislation to 
establish an objective test for classifying workers both as 
employees and as independent contractors. Additional 
Subcommittee hearings may be scheduled as time permits.
    5. Pension and Retiree Health Issues. The Subcommittee will 
conduct oversight activities with respect to workers' pension 
benefits, including an examination of Federal pension plan 
enforcement activities at the Departments of Labor and Treasury 
and the Pension Benefit Guaranty Corporation, funding levels of 
Federally-insured plans, and the sufficiency of protections for 
retirees receiving pension benefits through insurance 
annuities. The Subcommittee may also examine recent trends with 
regard to terminations of employer-provided retiree health 
plans, their implications for retiree health insurance 
coverage, and options for addressing this issue. Subcommittee 
hearings may be scheduled as time permits.
    6. Tax Exempt Organizations. The Subcommittee will conduct 
oversight activities with regard to certain tax exempt 
organization issues, including: (1) mergers and joint venture 
activity between non-profit hospitals and for-profit entities 
and managed care organizations; (2) the recently-issued GAO 
report on Indian gaming; (3) the adequacy of Form 990 and other 
public information relating to tax-exempt organization 
activities; (4) and selected unrelated business income tax 
(``UBIT'') issues. Subcommittee hearings may be scheduled as 
time permits.
    7. Other Issues. The Subcommittee will examine other issues 
in support of the full Committee's activities as they arise 
(through briefings, meetings, or hearings if appropriate), 
including, among other things, any forthcoming Administration 
proposals to simplify the tax laws which relate to IRS practice 
and procedural rules, and the administrative and policy 
implications of the Administration's educational and job 
training tax incentives and other expiring tax provisions.
    8. Field Investigations and Hearings. The Subcommittee will 
conduct such field investigations and hearings as Committee 
staffing and budget resources permit, and as are necessary for 
purposes of evaluating the effectiveness of and compliance with 
the programs and laws under the jurisdiction of the Committee 
on Ways and Means.

                    subcommittee on human resources

    1. Welfare Reform. The subcommittee plans to hold hearings 
throughout 1997 on implementation of last year's welfare reform 
legislation, the ``Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996.'' Hearing topics for early in 1997 
will include work programs, job availability, anti-illegitimacy 
provisions, benefits for noncitizens, and Supplemental Security 
Income benefits for children. Later in the year, the 
Subcommittee is likely to consider issues including state use 
of waivers, data processing, the effect of time limits, and 
overall program evaluation during the first year of the new 
Temporary Assistance for Needy Families program.
    2. Child Support. As part of its welfare reform oversight 
hearings, the Subcommittee intends to hold several hearings on 
implementation of child support provisions of the new law. The 
first hearing will take place in late winter/early spring. 
Following the Department of Health and Human Services' 
submission of written suggestions for reforming the child 
support incentive system (expected by mid-summer), the 
Subcommittee may consider legislation to reform the incentive 
system.
    3. Unemployment Insurance. The Subcommittee intends to 
conduct a series of hearings, beginning in the spring, on the 
nation's unemployment insurance (UT) system. Several issues, 
including comprehensive reform proposals increasing state 
flexibility in program design and state authority to set base 
periods for determining benefit eligibility, will be examined 
in detail.
    4. Adoption Incentives. The Subcommittee will hold a 
hearing to investigate barriers to adoption and specific state-
level solutions; further oversight hearings may be held as the 
Subcommittee considers legislation throughout 1997 in this 
area.
    5. Welfare and Drugs. The Subcommittee may conduct a 
hearing late in 1997 on the frequency of drug use by welfare 
parents, the relationship between drug use and child abuse and 
neglect, and possible approaches to both detecting drug use and 
reducing its frequency and consequences.
    6. Job Development. During mid-1997, the Subcommittee 
intends to consider strategies for encouraging job creation in 
areas heavily impacted by welfare reform. One or more hearings 
on tax incentives, jobs programs, and related issues is likely.
    7. Budget Issues. The Subcommittee will conduct a hearing 
on February 13, 1997, regarding the impact of the President 
Clinton's budget proposal on programs under the Subcommittee's 
jurisdiction.

                    subcommittee on social security

    1. Social Security Trust Fund Solvency Issues. The 
Subcommittee will hold a series of hearings beginning in the 
spring to examine the long-term solvency of the Social Security 
Trust Funds. According to the 1996 Trustees' Report, the Trust 
Funds are now projected to become insolvent in 2029. The 
Subcommittee will examine the recommendations of the Advisory 
Council on Social Security and receive testimony from other 
invited witnesses.
    2. Social Security Disability Insurance Trust Fund Solvency 
and Process. The Subcommittee will hold a series of hearings 
beginning in the spring to continue its examination of the 
solvency of the Social Security Disability Insurance Trust 
Fund, as well as process issues. In particular, the 
Subcommittee will examine the effectiveness of the Social 
Security Administration's (``SSA'') continuing disability 
review (``CDR'') program plus efforts to help beneficiaries 
return to work. Last year, Congress authorized more than $4 
billion in additional funding over the next seven years for SSA 
to conduct continuing disability reviews. SSA plans to 
eliminate the Social Security CDR backlog over this period. The 
hearings will focus on SSA's progress in this regard, 
suggestions to improve the CDR process, and the effectiveness 
of work incentives available to disability recipients under 
current law.
    3. Social Security Disability Appeals Process. The 
Subcommittee will hold a hearing in the summer to examine the 
Social Security disability appeals process. This hearing will 
focus on the extent of SSA's backlog of appealed cases, reasons 
for the growth of the backlog, how SSA is addressing the 
backlog, and what needs to be done in both the short and long 
term so that the public is better served in the disability 
appeals process.
    4. Social Security Disability Claims Process. The 
Subcommittee will continue its oversight into the progress SSA 
is making in redesigning the disability determination claims 
process to reduce administrative costs and improve public 
service. Subcommittee hearings are tentatively scheduled for 
the fall.
    5. Progress of Social Security Administration as an 
Independent Agency. The Subcommittee will hold an oversight 
hearing to examine the continued progress of SSA as an 
independent agency, with a specific focus on the role of the 
Advisory Board. This Subcommittee hearing is tentatively 
scheduled for the fall.
    6. Taxpayer-financed Union Activity. The Subcommittee will 
hold an oversight hearing to examine the report of the SSA 
Office of Inspector General regarding taxpayer-financed union 
activity at SSA. This Subcommittee hearing is tentatively 
scheduled for the fall.
    7. SSA Administrative Oversight. The Subcommittee also 
plans to hold a number of general SSA administrative oversight 
hearings during 1997 and 1998.
            Sincerely,
                                             Bill Archer, Chairman.

  B. Actions Taken and Recommendations Made With Respect to Oversight 
                                  Plan

Full Committee

    1. Tax proposals in Administration's Fiscal Year 1998 
Budget.
    Action taken: The Committee held a series of hearings on 
the President's FY 1998 budget proposal. The Committee heard 
from Administration witnesses on February 11 and 12, 1997, and 
held hearings on the education and training tax provisions on 
March 5, 1997, the revenue raising provisions on March 12, 
1997, and the savings and investment provisions of the 
President's budget proposal on March 19, 1997.
    2. Fundamental Tax Reform.
    Action taken: On April 15, 1997, the Committee held a 
hearing on the impact on individuals and families of replacing 
the Federal income tax with an alternative tax system.
    Subcommittee on Trade--Comparison of oversight plan 
developed in January 1997 to actual activities of the 
Subcommittee during the 105th Congress:
    1. Hearing to examine the outcome of the World Trade 
Organization Singapore Ministerial Meeting and the future 
direction of the WTO.
    Action taken: The Subcommittee hearing was held on February 
26, 1997. Testimony taken helped form Committee action on the 
Reciprocal Trade Agreements Act, H.R. 2621, the renewal of 
fast-track negotiating authority, which would apply to new 
agreements being negotiated in the WTO.
    2. Hearing on biannual authorizations for the United States 
Trade Representative, the Customs Service, and the 
International Trade Commission.
    Action taken: The Subcommittee hearing was held on March 
11, 1997. Testimony received helped form the basis for 
consideration of H.R. 1463, legislation authorizing 
appropriations for fiscal years 1998 and 1999 for the United 
States Trade Representative, the U.S. Customs Service, and the 
International Trade Commission.
    3. Hearing on U.S. trade policy objectives in Latin 
America, in the Pacific Basin, with Japan, and with newly 
emerging markets.
    Action taken: The Subcommittee held a hearing on March 18, 
1997, to review U.S. trade policy objectives and initiatives. 
In addition, the Subcommittee held hearings on the Free Trade 
Area of the Americas on July 22, 1997, and March 31, 1998.
    The Subcommittee also held a hearing on Asia trade issues 
on February 24, 1998, and on U.S.-Japan trade relations on July 
15, 1998. In December 1998, the Subcommittee led a trade 
mission to Australia and New Zealand to gather information 
relevant to the Committee's consideration of fast track, 
possible future free trade agreements in the region, and trade 
liberalization in the Asia-Pacific Economic Cooperation forum.
    Testimony and information gathered by the Subcommittee 
helped form the basis for consideration of H.R. 2621, the 
Reciprocal Trade Agreements Act, providing for the renewal of 
fast-track negotiating authority, as well as H. Res. 392, a 
resolution relating to the importance of Japanese American 
economic relations.
    4. Hearing on Normal Trade Relations with China.
    Action taken: Subcommittee hearings were held on June 17, 
1997, and June 17, 1998 on the renewal of normal trade 
relations with China. The Committee also held a hearing on 
November 4, 1997, on the possible accession of China to the 
World Trade Organization. Testimony taken helped form the basis 
for consideration of whether legislative efforts with respect 
to China would be appropriate, including extension of normal 
trade relations. In 1997 and 1998, the Committee reported 
adversely legislation that would disapprove the extension of 
normal trade relations to China.
    In addition, testimony received formed the basis for 
Subcommittee Chairman Crane's introduction of H.R. 2316, a bill 
changing the terminology used in U.S. trade statutes from 
``most-favored-nation'' to ``normal trade relations.'' H.R. 
2316 was enacted as part of the conference agreement on H.R. 
2676, the International Revenue Service Restructuring and 
Reform Act (P.L. 105-206).
    Finally, on April 17, 1997, Chairman Crane requested that 
the General Accounting Office conduct an analysis of the 
negotiations with China regarding its accession to the WTO. The 
Committee expects the results of this study in 1999.
    5. Hearing to consider mechanisms for approving the 
agreement by which Chile or other countries will accede to the 
NAFTA.
    Action taken: The Subcommittee hearing was held on 
September 30, 1997, to examine implementation issues related to 
the renewal of the President's fast-track negotiating 
authority. Testimony taken helped form the basis for Committee 
action on the Reciprocal Trade Agreements Act, H.R. 2621.
    6. Hearing on the Administration's legislatively mandated 
overview of the NAFTA.
    Action taken: The hearing was held on September 11, 1997. 
In addition to the testimony presented at the hearing, the 
General Accounting Office testified as to the results of a 
study requested by Subcommittee Chairman Crane on the various 
economic analyses available on NAFTA's effects, the 
implementation of NAFTA's trilateral side agreements, and 
NAFTA's dispute settlement processes.
    7. Hearing on expansion of trade with sub-Saharan Africa.
    Action taken: The Subcommittee hearing was held on April 
29, 1997. Testimony taken at the hearing served as the basis 
for Committee consideration of H.R. 1432, the African Growth 
and Opportunity Act.
    8. Hearing on antidumping and countervailing duty issues.
    Action taken: In June 1998, the Congressional Budget Office 
submitted a report requested by the Committee on Ways and Means 
examining the antidumping activity of U.S. trading partners to 
determine trends, comparing U.S. activity with that of other 
countries, and analyzing claims made by various participants in 
the debate over U.S. policy.
    In response to allegations of steel being dumped in the 
U.S. market by U.S. trading partners, Chairman Archer 
introduced H. Con. Res. 350, calling on the President to take 
all necessary action under existing law to respond to the 
significant increase in steel imports resulting from the 
financial crisis in Asia, Russia, and other regions.
    9. Hearing on possible extension or reforms of the Trade 
Adjustment Assistance (TAA) program.
    Action taken: The Subcommittee took testimony on the 
effects of trade agreements on U.S. workers at its September 
11, 1997, hearing on the President's Comprehensive Review of 
the NAFTA and at its September 30, 1997, hearing on the 
implementation of fast track authority. The testimony received 
formed the basis for Committee consideration of the 
reauthorization of the general TAA program and the NAFTA-
related TAA program as part of the Reciprocal Trade Agreements 
Act, H.R. 2621. Reauthorization of the general and NAFTA-
related TAA programs was later included in the conference 
report on H.R. 4328, the Omnibus Appropriations Bill for Fiscal 
Year 1999 (P.L. 105-277).
    10. Hearing to review rules of origin and country of origin 
marking.
    Action taken: Because the negotiations in the World Trade 
Organization on Rules of Origin harmonization did not conclude 
as scheduled in July 1998, the Subcommittee on Trade postponed 
the anticipated hearing on rules of origin pending the outcome 
of those negotiations.
    On September 14, 1998, the Subcommittee requested written 
public comment on H.R. 4526, a bill making changes in rules of 
origin of certain textile products.
    11. Hearing on Customs laws and practices.
    Action taken: Subcommittee hearings were held on May 15, 
1997, and April 30, 1998. Testimony taken helped form the basis 
for Committee consideration of H.R. 3644, a bill providing for 
the use of Customs user fees for additional preclearance 
activities of the U.S. Customs Service, and H.R. 3809, the Drug 
Free Borders Act.
    In addition, the Subcommittee initiated a number of studies 
by the General Accounting Office relating to the U.S. Customs 
Service. Specifically, Subcommittee Chairman Crane requested a 
study, in conjunction with Chairman Horn of the Government 
Reform and Oversight Subcommittee on Government Management, 
Information and Technology, on how the U.S. Customs Service 
allocates its inspectional resources. Chairman Crane also 
requested separate studies on the status of the implementation 
of the Customs Modernization Act and Customs reorganization, 
the air program and international activities of the U.S. 
Customs Service, and on audits and investigations conducted by 
Customs to target trade violations.
    Subcommittee on Health--Comparison of oversight plan 
developed in January 1997 to actual activities of the 
Subcommittee during the 105th Congress.
    1. Hearing to examine Medicare proposals in the President's 
Fiscal Year 1998 Budget.
    Action taken: The Subcommittee hearing was held on February 
13, 1997. Testimony taken at the hearing helped form the basis 
of legislation considered by the Committee which was included 
in H.R. 2015, the ``Balanced Budget Act of 1997'' (P.L. 105-
33).
    2. Hearing to examine Medicare Health Maintenance 
Organization Payment Policy.
    Action taken: The Subcommittee hearing was held on February 
25, 1997. Testimony taken at the hearing helped form the basis 
of legislation considered by the Committee which was included 
in H.R. 2015, the ``Balanced Budget Act of 1997'' (P.L. 105-
33).
    3. Hearing to examine Medicare Home Health and Skilled 
Nursing Facility Payment Policies.
    Action taken: The Subcommittee hearing was held on March 4, 
1997. Testimony taken at the hearing helped form the basis of 
legislation considered by the Committee which was included in 
H.R. 2015, the ``Balanced Budget Act of 1997'' (P.L. 105-33).
    4. Hearing to examine Medicare Health Maintenance 
Organization Regulation.
    Action taken: The Subcommittee hearing was held on March 6, 
1997. Testimony taken at the hearing helped form the basis of 
legislation considered by the Committee which was included in 
H.R. 2015, the ``Balanced Budget Act of 1997'' (P.L. 105-33).
    5. Hearing to examine Medicare Payments for Teaching and 
Disproportionate Share Hospitals.
    Action taken: The Subcommittee hearing was held on March 
11, 1997. Testimony taken at the hearing helped form the basis 
of legislation considered by the Committee which was included 
in H.R. 2015, the ``Balanced Budget Act of 1997'' (P.L. 105-
33).
    6. Hearing to examine Medicare Coverage for Preventive 
Benefits.
    Action taken: The Subcommittee hearing was held on March 
13, 1997. Testimony taken at the hearing helped form the basis 
of legislation considered by the Committee which was included 
in H.R. 2015, the ``Balanced Budget Act of 1997'' (P.L. 105-
33).
    7. Hearing to examine Medicare Oversight Reports.
    Action taken: The Subcommittee hearing was held on March 
20, 1997 and again on March 3, 1998. Testimony taken at the 
1997 hearing helped form the basis of legislation considered by 
the Committee which was included in H.R. 2015, the ``Balanced 
Budget Act of 1997'' (P.L. 105-33). Testimony from the 1998 
hearing helped to form some of the policies in H.R. 4567, the 
Medicare Home Health Care and Veterans' Health Improvement Act 
of 1998.''
    8. Hearing to examine Medicare Coverage Policy.
    Action taken: The Subcommittee hearing was held on April 
17, 1997. Testimony assisted the Committee in understanding the 
Health Care Financing Administration's coverage policies. 
Following the hearing, the Committee on Ways and Means 
Subcommittee on Health requested the General Accounting Office 
to conduct a legal analysis of whether the Health Care 
Financing Administration's Technical Advisory Committee (TAC) 
was in compliance with the requirements of the Federal Advisory 
Committee Act. The GAO found the TAC to be in violation and the 
TAC was subsequently disbanded. HCFA is currently developing a 
proposal which meets compliance and increases private-sector 
input on Medicare coverage decision-making. Letters of 
correspondence have been exchanged through the 1998 calendar 
year.
    9. Hearing to examine Medicare Provider Sponsored 
Organizations.
    Action taken: The Subcommittee hearing was held on April 
24, 1997. Testimony taken at the hearing helped form the basis 
of legislation considered by the Committee which was included 
in H.R. 2015, the ``Balanced Budget Act of 1997'' (P.L. 105-
33).

Subcommittee on Oversight

    A. Subcommittee Hearings for 1997.
    1. Taxpayer Advocate Report.
    Action taken: The Subcommittee held a hearing on February 
25, 1997, to review the 1997 Annual Report of the IRS Taxpayer 
Advocate. The Subcommittee held a hearing on February 3, 1998, 
to review the 1998 Annual Report of the Taxpayer Advocate. 
Testimony taken at the hearings helped in the development of 
the Taxpayer Bill of Rights 3 portion of H.R. 2676, the IRS 
Restructuring and Reform Act of 1998 (P.L. 105-206).
    2. IRS Fiscal Year 1998 Budget/1997 Tax Return Filing 
Season.
    Action taken: The Subcommittee held a hearing on March 18, 
1997, to review the IRS' budget request for FY 1998 and the 
1997 tax return filing season. The Subcommittee held a hearing 
on March 31, 1998, to review the IRS' budget request for FY 
1999 and the 1998 tax return filing season. Testimony taken at 
the hearings helped in the development of H.R. 2676, the IRS 
Restructuring and Reform Act of 1998 (P.L. 105-206).
    3. General Accounting Office (``GAO'') ``High Risk'' 
Report.
    Action taken: The Subcommittee held a hearing on March 4, 
1997, on the GAO ``high risk'' reports related to Internal 
Revenue Service (IRS) financial management, IRS receivables, 
filing fraud, IRS Tax Systems Modernization, Customs Service 
financial management, customs asset forfeiture programs, the 
year 2000 problem, government-wide information security, 
Medicare, Supplemental Security Income (SSI) and Superfund 
program management. The Subcommittee has monitored progress of 
the high risk programs with the IG offices of the Department of 
the Treasury, Department of Health and Human Services, and the 
Social Security Administration, as well as the GAO.
    4. Taxpayer Bill of Rights 2 (TBOR2) Studies.
    Action taken: The Subcommittee held a hearing on February 
24, 1998, to examine the Treasury Department Report to the 
Congress on Joint Liability and Innocent Spouse Issues, as well 
as the GAO report, Information on the Joint and Several 
Liability Standard. On March 19, 1998, the Subcommittee issued 
a Report to the full Committee on Relief from Joint and Several 
Liability for Separated and Divorced Taxpayers. The 
Subcommittee's work provided the foundation for the innocent 
spouse provisions of H.R. 2676, the Internal Revenue Service 
Restructuring and Reform Act of 1998, signed into law on July 
22, 1998 (P.L. 105-206).
    H.R. 2676, as reported, also established a net interest 
rate of zero on equivalent amounts of overpayment and 
underpayment of income tax that exist for any period, a 
provision retained in the measure as signed into law.
    5. Low-Income Housing Credit.
    Action taken: The Subcommittee held hearings on April 23, 
1997, and May 1, 1997, and received testimony from GAO, the 
IRS, the National Council of State Housing Agencies and 14 
public witnesses. On May 22, 1997, the Subcommittee issued a 
report outlining GAO's report findings and recommendations to 
improve the monitoring of enforcement and compliance, and 
identifying several recommendations for reform, including the 
need to target limited tax resources to families with children, 
the need for a market study requirement and a need for more 
emphasis on rehabilitation of existing housing stock.
    6. Oversight of IRS Tax Debt Collection Issues.
    Action taken: The Subcommittee staff met with officials 
with the GAO on May 13, 1997. A letter was sent to the 
Department of Treasury by Rep. Jim Kolbe, Chairman, 
Subcommittee on Treasury, Postal Service, and General 
Government, Committee on Appropriations, Rep. Nancy L. Johnson, 
Chairman, Subcommittee on Oversight, Committee on Ways and 
Means and Stephen Horn, Chairman, Subcommittee on Government 
Management, Information, and Technology, Committee on 
Government Reform and Oversight on June 10, 1997, directing the 
Department to discontinue the IRS pilot program to test the use 
of private collection companies to assist the IRS in collecting 
delinquent federal taxes until further notice based on input by 
GAO. On December 10, 1997, the Subcommittee requested that GAO 
examine and report on the key statutory and administrative 
issues that need to be addressed in order to design a more 
effective pilot program to test the use of private companies to 
collect delinquent taxes than the previous pilot program in use 
during fiscal years 1996 and 1997.
    7. Electronic Federal Tax Payment System.
    Action taken: The Subcommittee held a hearing on April 16, 
1997, to examine: (1) the status of IRS implementation of 
EFTPS; (2) concerns about specific EFTPS features identified by 
small business, payroll service providers, the banking 
industry, and others. The hearing provided the basis for the 
IRS to extend a waiver of a 10 percent penalty for taxpayers 
required to enroll in EFTPS for filing their payroll and other 
business taxes. The IRS has further extended the waiver while 
working to increase participation in this program.
    8. Impact of the Tax Laws on Land Use Decisions.
    Action taken: The Subcommittee held a hearing on October 
28, 1997 to examine the performance of the Empowerment Zone/
Enterprise Community program.
    9. Report of the National Commission on Restructuring the 
IRS.
    Action taken: The Subcommittee held a hearing on July 24, 
1997 to provide the Members with a general overview of the 
Commission's findings and recommendations, as well as the 
Administration's position on the Commission's recommendations; 
onSeptember 2, 1997, on the Commission's recommendations for 
expanding electronic filing and other actions that could be taken to 
help achieve the goal of receiving 80 percent of tax returns 
electronically within 10 years; and on September 17, 1997, on the 
Commission's recommendations for taxpayer rights, as well as other 
taxpayers rights initiatives. The Subcommittee's report, issued October 
20, 1997, provided for the basis for the Taxpayer Bill of Rights 3 
provisions of the IRS Restructuring and Reform Act of 1998.
    10. IRS Employee Misconduct Report.
    Action taken: The conference report on the IRS 
Restructuring and Reform Act of 1998 (P.L. 105-206) requires 
that, in collecting data for the annual report on employee 
misconduct, records of taxpayer complaints of misconduct by IRS 
employees must be maintained on an individual basis.
    B. Other Oversight Subcommittee Activities.
    1. Year 2000 Crisis.
    Action taken: On May 7, 1998, the Subcommittee held its 
first hearing on Y2K to examine the implications of Y2K for 
various program beneficiaries, potential risks to program 
missions, and major remaining program vulnerabilities. Both 
public and private sector witnesses testified on the risks and 
mitigation strategies related to Y2K issues. The Subcommittee's 
second Y2K hearing was held on June 16, 1998, and focused on 
the implications of Y2K on the nation's telecommunications 
infrastructure--which is composed of the public sector network 
of telephone systems, the Internet, and millions of government 
and private sector telecommunications and computer networks. 
Specifically, the Subcommittee explored the impacts of critical 
infrastructure component failures on Social Security, tax 
administration, Medicare, and other major programs within the 
Committee's jurisdiction. The public and private sector 
witnesses testified on the Y2K readiness of the 
telecommunications industry, and the remaining risks and 
challenges. The meetings and two hearings produced the basis 
for Subcommittee's August 6, 1998, report to the Committee 
(WMCP 105-10), which included recommendations to preclude the 
disruption of major programs or the discontinuance of vital 
services.
    2. Earned Income Credit (EIC).
    Action taken: The full Committee held a hearing on May 8, 
1997 to examine the Earned Income Credit Compliance Study 
released by the IRS on April 21, 1997. The Committee received 
testimony from the IRS, Treasury and GAO. In response to the 
study's findings, an additional $500 million was appropriated 
for an EIC compliance initiative.
    3. Small Business Tax Simplification.
    Action taken: The Subcommittee held a hearing on June 23, 
1998, on the impact of the complexity of the Code on individual 
taxpayers and small businesses, including the Alternative 
Minimum Tax (AMT) and increased expensing limits for small 
businesses.
    4. Worker Classification Issues.
    Action taken: The Subcommittee held two hearings on these 
issues in the 104th Congress. The House version of the Taxpayer 
Relief Act of 1997 included a statutory safe harbor for 
determining worker classification for federal income tax 
purposes. The provision was dropped in conference.
    5. Pension and Retiree Health Issues.
    Action taken: The Subcommittee held a hearing on March 10, 
1998, to review pension issues of primary importance to small 
business, and retiree health issues. Testimony taken at the 
hearing indicated that there was support for a simplified 
defined benefit pension plan targeted to small businesses. The 
Subcommittee held a hearing on May 5, 1998 to explore the 
simplification and reform of the pension tax law. Testimony 
taken at these hearings helped form the basis for the 
Subcommittee Chairman's interim progress report to the full 
Committee Chairman on the Subcommittee's activities on pension 
matters.
    6. Tax Exempt Organizations.
    Action taken: The Subcommittee continued to monitor issues 
effecting tax exempt organizations. The Subcommittee also 
monitored major IRS regulations effecting tax exempt 
organizations, such as regulations dealing with the 
intermediate sanction penalty, and joint ventures between non-
profit hospitals and for-profit entities, as well as the public 
disclosure rules for public charities including private 
foundations. The disclosure rules were included in H.R. 4328, 
Making Omnibus Consolidated and Emergency Supplemental 
Appropriations for Fiscal Year 1999. (P.L. 105-277)
    7. Other Issues. The Subcommittee will examine other issues 
in support of the full Committee's activities as they arise 
(through briefings, meetings, or hearings if appropriate), 
including, among other things, any forthcoming Administration 
proposals to simplify the tax laws which relate to IRS practice 
and procedural rules, and the administrative and policy 
implications of the Administration's educational and job 
trainingtax incentives and other expiring tax provisions.
    Action taken: See Section C. below for discussion of 
additional oversight activities.
    8. Field Investigations and Hearings. The Subcommittee will 
conduct such field investigations and hearings as Committee 
staffing and budget resources permit, and as are necessary for 
purposes of evaluating the effectiveness of and compliance with 
the programs and laws under the jurisdiction of the Committee 
on Ways and Means.
    Action taken: The Subcommittee did not deem it necessary to 
hold field hearings during the 105th Congress.
    Subcommittee on Human Resources--Comparison of oversight 
plan developed in January 1997 to actual activities of the 
Subcommittee during the 105th Congress:
    1. Welfare Reform.
    Action taken: The Subcommittee held a hearing on February 
26, 1997 on technical corrections to the welfare reform law, 
which included testimony from Representative Herger and Olivia 
Golden of the Department of Health and Human Services, among 
other witnesses. The Subcommittee proceeded to consider H.R. 
1048, technical corrections legislation, on April 9, 1997, with 
full Committee consideration on April 23, 1997. This technical 
corrections bill was included in the Balanced Budget Act of 
1997 (P.L. 105-33).
    The Subcommittee conducted several oversight hearings about 
the Supplemental Security Income (SSI) program. On March 12, 
1998, the Subcommittee conducted a joint hearing with the 
Subcommittee on Social Security on challenges facing the Social 
Security Administration (SSA), including SSA's workload 
management as it effects the SSI disability program, the 
implementation of SSI changes in the welfare reform law, and 
the ongoing risk of SSI fraud. On April 21, 1998, the 
Subcommittee held an oversight hearing on specific examples of 
SSI fraud and abuse.
    2. Child Support.
    Action taken: The Subcommittee held a hearing on the 
Administration's child support incentive system proposal on 
March 20, 1997, which included testimony from the U.S. 
Department of Health and Human Services and the California 
Department of Social Services. The Subcommittee also held a 
hearing on September 10, 1997 on child support system 
improvements. On September 18, 1997, the Subcommittee 
considered child support incentives legislation (H.R. 2487), 
which was followed by full Committee consideration on September 
23, 1997. The Subcommittee also held a hearing on January 29, 
1998 on modifying child support penalties related to automatic 
data processing, and a markup on February 3, 1998 on H.R. 3130, 
the Child Support Performance and Incentive Act of 1998. This 
legislation--providing for both reform of the child support 
incentives system and modifying child support data processing 
penalties--was signed into law on July 16, 1998 (P.L. 105-200).
    3. Unemployment Compensation.
    Action taken: The Subcommittee held a hearing on April 24, 
1997 on unemployment compensation reform issues. The 
Subcommittee also held a hearing on June 23, 1998 on a specific 
reform proposal, H.R. 3684, as well as other proposed changes 
to the UC system.
    4. Adoption Incentives.
    Action taken: The Subcommittee held a hearing on strategies 
to encourage adoption on February 27, 1997, featuring witnesses 
from the U.S. General Accounting Office and a variety of 
private groups. On April 8, 1997, the Subcommittee held a 
hearing on H.R. 867, the Adoption Promotion Act of 1997. The 
Subcommittee considered H.R. 867 on April 16, 1997, followed by 
full Committee consideration on April 23, 1997. The ``Adoption 
and Safe Families Act of 1997,'' was signed into law on 
November 19, 1997 (P.L. 105-89). The Subcommittee held a field 
hearing in Ft. Lauderdale, Florida on December 14, 1998 on 
State implementation of the adoption reform law.
    5. Welfare and Drugs.
    Action taken: The Subcommittee held a hearing on October 
28, 1997 on the impacts of substance abuse on families 
receiving welfare.
    6. Job Development and Budget Issues.
    Action taken: The Subcommittee held a hearing on February 
13, 1997 on the President's FY 1998 budget proposal, including 
provisions that would provide additional welfare-to-work 
assistance, especially job development assistance, to parents 
struggling to leave welfare for work. Representatives of the 
departments of Health and Human Services and Labor and the 
Social Security Administration and Representative Lamar Smith, 
in addition to several outside groups, testified. On June 5, 
1997, the Subcommittee considered its budget reconciliation 
recommendations that included a new $3 billion grant program 
for job development and other activities designed to help 
welfare recipients with the most serious barriers to work. Full 
Committee consideration followedon June 10, 1997. H.R. 2015, 
the ``Balanced Budget Act of 1997'' was signed into law by the 
President on August 5, 1997 (P.L. 105-33).
    Subcommittee on Social Security--Comparison of oversight 
plan developed in January 1997 to actual activities of the 
Subcommittee during the 105th Congress:
    1. Hearing series to examine proposals to restore long-term 
solvency to the Social Security Trust Funds.
    Action taken: The Subcommittee began a hearing series on 
``The Future of Social Security for this Generation and the 
Next'' on March 6, 1997. The 1994-96 Advisory Council on Social 
Security was asked to examine the program's long-range 
financial status, as well as the adequacy and equity of its 
benefits. The Advisory Council issued its report in January 
1997, but was unable to reach a consensus, so the report 
included three different approaches to restoring financial 
solvency. These approaches ranged from keeping the program's 
benefit structure essentially the same while eventually raising 
payroll taxes and considering investing part of the Social 
Security Trust Funds in the stock market, to reducing benefits 
and imposing a new mandatory employee contribution to 
individual savings accounts, to a major redesign of the system 
that gradually replaces a major portion of the Social Security 
retirement benefit with individual private savings accounts. 
Testimony was heard from selected members of the Advisory 
Council who supported each of the different plans. The 
Subcommittee fully explored the major areas of concern 
identified by the Council, along with the Council's specific 
findings and recommendations.
    The Subcommittee held the second hearing in the series on 
April 10, 1997. A wide range of experts in economics and public 
policy testified about the fundamental issues to consider when 
evaluating options for Social Security reform.
    The Subcommittee held the third hearing in the series on 
May 22, 1997, to examine the findings of the 1997 Annual Report 
of the Board of Trustees on the financial status of the Social 
Security Trust Funds. Testimony was heard from the two current 
public representatives on the Board of Trustees. In addition, 
the Subcommittee heard from organizations with different 
generational perspectives on Social Security reform.
    The Subcommittee held the fourth hearing in the series on 
June 24, 1997. Testimony was heard from policy experts on 
Social Security reform regarding the degree to which reform is 
necessary. Witnesses provided an assessment of the Advisory 
Council recommendations, other reform proposals, and offered 
specific recommendations for Congress to consider as it moves 
forward.
    The Subcommittee held the fifth hearing in the series on 
July 10, 1997 to receive the views of Members of Congress and 
representatives of business and labor groups on Social Security 
reform.
    The Subcommittee held the sixth hearing in the series on 
September 18, 1997, to examine the views of experts on the 
Social Security reform experiences of other countries. 
Testimony was received from witnesses from Chile, Sweden, 
Australia, and the United Kingdom and focused on: prevailing 
factors contributing to Social Security reform, national budget 
and macroeconomic effects of the reforms, problems faced during 
the transition to the new Social Security system (including 
transition costs and how such costs were paid for), the degree 
of individual risk and reward assumed, the degree to which 
protections against inflation are contained in the new Social 
Security system, and the degree to which features of the Social 
Security system are applicable to the United States situation.
    The Subcommittee held the seventh hearing in the series on 
October 23, 1997, to examine the current state of public 
opinion on the future of Social Security. Testimony was 
received from public forum facilitators and polling experts on 
what Americans are saying about the future of Social Security 
(including Americans' understanding of how Social Security 
works and why the program is facing long-term insolvency), and 
American's views on what changes are necessary to fix Social 
Security.
    The Subcommittee held the eighth hearing in the series on 
February 26, 1998, to examine the implications of raising the 
retirement age. Testimony was received from actuaries, social 
insurance experts, employers, and employee representatives on 
proposals to raise the normal retirement age and what intended 
and unintended effects they foresee.
    The Subcommittee held the ninth hearing in the series on 
May 21, 1998, to examine the implications of proposals 
affecting Federal, State, and local government employees. 
Testimony was received from Members of Congress, the U.S. 
General Accounting Office, Federal and State government 
employee representatives, and social insurance experts on the 
implications of extending mandatory Social Security coverage to 
all newly hired State and local employees, and altering current 
law provisions affecting the Social Security benefits of 
persons who receive government pensions.
    The Subcommittee held the tenth hearing in the series on 
June 3, 1998, to examine the proposals regarding personal 
accounts. Testimony was received by Social Security experts on 
how personal accounts would be administered, how personal 
accounts would be financed, how personal accounts would be 
accessed and dispersed, what investment vehicles for the 
personal accounts are appropriate, how personal accounts would 
beintegrated with other private pensions and government 
benefits, and how these personal accounts would work within current tax 
law.
    The Subcommittee held the eleventh hearing in the series on 
June 18, 1998, to examine in detail the structure of individual 
savings accounts within the Social Security system and the 
effects that individually-owned investments would have for 
retirees, financial markets, the investment community, 
individual investors and businesses, both large and small. 
Testimony was received by experts in the field of investments 
and capital markets and representatives of institutions that 
might become participants in a system of individual savings 
accounts.
    On April 1, 1998, the full Committee held a hearing on the 
use of an expert panel to design long-range Social Security 
reform. On April 23, 1998, the Committee reported H.R. 3546, 
the ``National Dialogue on Social Security Act of 1997.'' The 
bill passed the House on April 29, 1998.
    On November 19, 1998, the full Committee held a hearing to 
address the role past policy changes and legislative processes 
have played in the current and future financial condition of 
Social Security. Testimony from the Administration, former 
Administration officials, and social insurance experts included 
the challenges facing the program in the next century and the 
legislative process required for a successful reform of the 
program.
    2. Hearings to examine the long-term solvency of the Social 
Security Disability Insurance Trust Fund and oversight of the 
disability process.
    Action taken: The Subcommittee held a hearing on July 23-
24, 1997, to receive the views of various agencies, experts, 
consumers, and providers regarding the barriers which prevent 
Social Security disability recipients from returning to work. 
Witnesses offered recommendations for changes to the law that 
would remove these barriers. Testimony at the hearing formed 
the basis of H.R. 3433, the ``Ticket to Work and Self-
Sufficiency Act of 1998,'' which was introduced by Subcommittee 
on Social Security Chairman Bunning, on behalf of himself and 
Mrs. Kennelly.
    The Subcommittee held a hearing on September 25, 1997, to 
review the current status of the continuing disability review 
(CDR) workload, examine the Social Security Administration's 
(SSA's) use of the additional funds made available in 1996 for 
CDRs, and to consider the findings of the GAO regarding SSA's 
management of the CDR process.
    The Subcommittee held a hearing on March 17, 1998, to 
examine H.R. 3433, the ``Ticket to Work and Self-Sufficiency 
Act of 1998.'' Testimony in support of the bill was received by 
the Social Security Administration, individuals with 
disabilities, and providers of rehabilitation and support 
services.
    3. Hearing to examine the disability appeals process.
    Action taken: The Subcommittee held a hearing on April 24, 
1997, to review the current status of the Office of Hearings 
and Appeals workloads and their impact on service to the 
public; to examine the effects of SSA's short- and long-term 
initiatives to address those workloads; and to consider the 
findings of the GAO regarding SSA's timeliness and consistency 
in managing disability decisions.
    4. Oversight hearing on the Social Security 
Administration's progress in redesigning the disability claims 
process.
    Action taken: Subcommittee on Social Security Chairman 
Bunning requested that the General Accounting Office continue 
their audit of the Social Security Administration's progress in 
their redesign of the disability claims process. The GAO report 
is expected to be completed by March of 1999. Redesign progress 
was addressed during the March 12, 1998 joint Subcommittee 
hearing to examine the challenges facing the new Commissioner 
of Social Security.
    5. Joint oversight hearing on the continued progress of the 
Social Security Administration as an Independent Agency.
    Action taken: The Subcommittee on Social Security and the 
Subcommittee on Human Resources held a joint hearing on March 
12, 1998, to examine the challenges facing the new Commissioner 
of Social Security, Kenneth Apfel. Testimony focused on the 
views of the Commissioner, along with the findings of recent 
audits and studies conducted by the General Accounting Office 
and SSA's Office of the Inspector General.
    6. Oversight hearing on the report of the SSA Office of 
Inspector General on taxpayer-financed union activity at SSA.
    Action taken: The Subcommittee held three days of hearings 
on July 22, 23 and 24, 1998, to examine labor-management 
relations at the Social Security Administration. Testimony was 
provided by SSA's Acting Inspector General, SSA employees, SSA 
officials and the President of the union who represents many of 
the Social Security field office employees. Testimony focused 
on the findings of the Inspector General with respect to the 
accuracy and completeness with which union activity spending is 
accounted for by SSA management, the scope of non-agency 
activities at SSA, the extent to whichthese non-agency 
activities are subsidized by taxpayers, and suspected abuse of official 
time.
    Following the hearings, Subcommittee Chairman Bunning asked 
SSA's Office of Inspector General to conduct an in-depth audit 
to follow through on the preliminary findings presented by the 
General Accounting Office in 1996. GAO's findings were 
addressed during an oversight hearing in July 1998. SSA 
reported that in fiscal year 1996, spending for union 
activities increased to $14.7 million. This represents a 17% 
increase over the prior year, and a 145% increase since 1993. 
Subcommittee on Social Security Chairman Bunning worked closely 
with the Appropriations Subcommittee on Labor, Health, and 
Human Services, and Education Chairman Porter to prevent Social 
Security Trust Fund spending on union activities at SSA. As a 
result, the SSA appropriation included language which provided 
that expenditures by the Social Security Trust Funds for union 
activities shall be reimbursed, with interest.
    7. General SSA administrative oversight hearings.
    Action taken: The Subcommittee held a hearing on May 6, 
1997, to review on-line access to Social Security earnings 
records offered through the SSA's web site. SSA, GAO, and 
privacy experts gave testimony as to how privacy and security 
of information can be protected on-line, whether violations of 
the process can be detected, and if such violations can be 
investigated and prosecuted.

 C. Additional Oversight Activities and Any Recommendation or Actions 
                                 Taken

      1. ADDITIONAL OVERSIGHT ACTIVITIES OF THE TRADE SUBCOMMITTEE

    In addition to the oversight activities detailed above with 
respect to the Committee's oversight plan, the Subcommittee 
held a number of hearings to address various topics concerning 
trade policy: U.S. economic and trade policy toward Cuba on May 
7, 1998; trade with the European Union, including the New 
Transatlantic Agenda and the New Transatlantic Economic 
Partnership on July 23, 1997 and July 28, 1998; U.S.-Vietnam 
trade relations on June 18, 1998; U.S. efforts to reduce 
barriers to trade in agriculture on February 12, 1998; and the 
use and effect of unilateral trade sanctions on October 23, 
1998.
    The Subcommittee also requested written public comment on 
several trade issues and pending legislation: extension of 
unconditional normal trade relations with Mongolia; extension 
of unconditional normal trade relations to the Lao People's 
Democratic Republic; and legislation introduced in the 105th 
Congress proposing miscellaneous and technical changes to U.S. 
trade statutes.
    Finally, the Subcommittee requested and received a number 
of reports not listed in its oversight plan, as follows: 
requested a study by the General Accounting Office to review 
the state of implementation of the United States-Japan 
agreements on insurance signed in 1994 and 1996; requested a 
study by the General Accounting Office to evaluate how well the 
United States Trade Representative and the Department of 
Commerce monitor and enforce compliance with existing trade 
agreements and trade laws; received a study from the 
International Trade Commission providing an overview and 
analysis of current U.S. unilateral economic sanctions; 
requested and received a report from the International Trade 
Commission concerning the structure of the global large civil 
aircraft industry and market; requested a study from the ITC on 
the competitive condition of the U.S. piano industry.

    2. additional oversight activities of the oversight subcommittee

    The Subcommittee held a hearing on April 23, 1998 to review 
the operation of the tax law related to health insurance. 
Testimony taken at the hearing helped in the development of 
legislation to improve the deductibility of health insurance 
premiums paid by self-employed persons which was included in 
H.R. 4328, Making Omnibus Consolidated and Emergency 
Supplemental Appropriations for Fiscal Year 1999.
    The Subcommittee also held a hearing on August 4, 1998, to 
review whether the funding mechanisms of the schools and 
libraries fund, a.k.a. the e-rate program, enacted as part of 
Telecommunications Act of 1996. Testimony was taken in order 
that the Subcommittee might consider whether the funding 
mechanisms of the e-rate program, as implemented by the Federal 
Communications Commission, involves revenue or tax matters and 
whether the program was properly authorized.

 3. additional oversight activities of the human resources subcommittee

    In addition to the Subcommittee's oversight activities on 
welfare reform and other legislative issues described above, on 
March 19, 1998, the Subcommittee conducted a hearing on general 
oversight issues involving the implementation of the welfare 
reform law. The Subcommittee also held a hearing on fatherhood 
and welfare reform on July 20, 1998. The Subcommittee also 
conducted two field hearings that included panels devoted to 
testimony on implementation of both the 1996 welfare reforms 
and the child support reforms. These field hearings were 
conducted in Phoenix, Arizona on June 12, 1998 and in Carson 
City, Nevada on August 24, 1998. The Subcommittee also held an 
oversighthearing on State implementation of the child support 
enforcement provisions of the 1996 welfare reform law on May 19, 1998. 
On child welfare issues, in addition to hearings on specific 
legislation developed by the Subcommittee, three oversight hearings 
were held on October 28, 1997, June 11, 1998, and September 15, 1998. 
These hearings addressed the impact of substance abuse on the child 
welfare caseload, the establishment of a federal register to facilitate 
adoption reunions, and the implementation of the interethnic adoption 
amendments to remove barriers to adoption across race.

     4. additional oversight activities of the health subcommittee

    In addition to the activities detailed above, the 
Subcommittee on Health continued its oversight investigations 
into the Health Care Financing Administration's (HCFA) 
development of the Medicare Transaction System (MTS). The 
system was originally designed to replace the numerous Medicare 
claims review systems under which Medicare claims are paid. MTS 
would have allowed HCFA to evaluate claims under a single 
review system, which HCFA believed would improve efficiency and 
would assist the agency in combating Medicare fraud and abuse. 
The Subcommittee discovered that system development was behind 
schedule and over budget. Eventually, due to Congressional 
pressure, HCFA's contract with contractors for development of 
MTS was terminated in August 1997. Estimates of total HCFA 
expenditures on MTS software range from $41 to $50 million. 
However, the GAO reported to the Subcommittee that HCFA spent 
closer to $80 million on MTS, including $50 million for 
software development and $30 million for ``internal HCFA 
costs.''
    The Subcommittee on Health also held a number of other 
hearings to examine the operations of the Department of Health 
& Human Services (HHS) in general. These hearings included a 
hearing on April 8, 1997 on Children's Access to Health 
Coverage, a hearing on April 29, 1997 into Coordinated Care 
Options, a hearing on July 17, 1997 regarding the Inspector 
General's audit of HCFA, a hearing on September 25, 1997 
regarding implementation of the Health Insurance Portability 
and Accountability Act, a hearing on October 9, 1997 regarding 
Health Care Waste, Fraud and Abuse.
    During 1998, the Subcommittee on Health held the following 
hearings: a hearing on January 29, 1998 preparing HCFA for the 
21st Century; a hearing on February 26, 1998 assessing Health 
Care Quality; a hearing on March 24, 1998 regarding Patient 
Confidentiality; a hearing on April 23, 1998 regarding Patient 
Appeals and a hearing on August 6, 1998 regarding Medicare Home 
Health.

 5. additional oversight activities of the social security subcommittee

    The SSA submitted a draft strategic plan to Congress on 
June 30, 1997, as part of the statutory requirement of the 
Government Performance and Results Act to ``consult'' with 
Congress prior to submission of a final strategic plan on 
September 30, 1997. In order for the Subcommittee to solicit 
constructive feedback on improving the plan, two working group 
meetings were held, including former SSA officials, 
representatives from the Congressional Research Service, 
Congressional Budget Office, along with SSA employee groups and 
advocates. A letter providing formal feedback to SSA regarding 
the draft strategic plan was sent by Chairman Bunning, Ranking 
Member Mrs. Kennelly, and the Appropriations Subcommittee on 
Labor, Health, and Human Services and Education Chairman 
Porter.
    The Subcommittee continues to closely monitor SSA's problem 
of uncredited earnings reports in the agency's ``suspense 
file,'' including regular staff briefings by the Office of 
Inspector General who is conducting an ongoing investigation.
    Subcommittee on Social Security Chairman Bunning requested 
a number of reports from the General Accounting Office, 
including requests to: study a proposal to report estimated 
rates of return to Social Security contributions on the 
Personal Earnings and Benefit Estimate Statement; study SSA's 
management of information technology (including year 2000 
readiness, the status of SSA's efforts to implement its new 
modernized information systems infrastructure, efforts to 
improve its software development process, and SSA's Internet 
service delivery initiatives); investigate the potential 
consequences from extending Social Security coverage to state 
and local government workers and examine alternative state and 
local retirement systems to determine if there are lessons to 
be learned for Social Security reform from these other systems; 
determine the extent to which the Social Security number is 
being used in government and private entities and estimate the 
impacts of restricting the use of the Social Security number; 
and evaluating the extent to which attorneys and other 
individuals representing claimants for benefits under title II 
of the Social Security Act and supplemental security income 
benefits under title XVI of the Act in administrative hearings 
before administrative law judges adequately represent their 
client's interests.

        6. additional oversight activities of the full committee

    The Committee investigated and conducted oversight on areas 
within its jurisdiction, as follows.
    On February 5, 1997, the Committee held a hearing on 
maintaining the solvency of the Airport and Airway Trust Fund. 
On February 12, 1997, the Committee considered H.R. 668, the 
``Airport and Airway Trust Fund Tax Reinstatement Act of 
1997.'' H.R. 668 passed the House and became Public Law 105-2.
    On May 8, 1997, the Committee held a hearing on the IRS's 
1995 Earned Income Tax Credit Compliance Study. Certain Earned 
Income Credit reforms were incorporatedinto the Taxpayer Relief 
Act of 1997.
    The Committee held a series of hearings on various tax 
reduction proposals. On January 28, 1998, the Committee held a 
hearing on proposals intended to rectify perceived unfair 
provisions in the tax code, focusing on the ``marriage tax 
penalty'' and the estate and gift tax. On February 4, 1998, the 
Committee held a hearing on tax rates, addressing alternative 
minimum tax relief for individuals, proposals to reduce Federal 
income or payroll taxes, and provisions in the tax code that 
operate as ``hidden rates.'' On February 12, 1998, the 
Committee held a hearing on new savings incentives, including 
modifications to the new capital gains law and proposals to 
provide an exclusion for interest and dividend income. Several 
of these proposals were incorporated into legislation, 
including H.R. 2676, the ``Internal Revenue Service 
Restructuring and Reform Act of 1998,'' H.R. 4579, the 
``Taxpayer Relief Act of 1998,'' and the ``Tax and Trade Relief 
Act of 1998'' in H.R. 4328, the ``Omnibus Consolidated and 
Emergency Supplemental Appropriations Act, 1999.''
    The Committee heard from Administration witnesses on 
February 25, 1998, regarding the revenue provisions in the 
President's FY 1997 budget proposal.
    On June 24, 1998, the Committee held a hearing on the debt 
management practices of the U.S. Department of the Treasury in 
an era of budget surpluses.

      Appendix I. Jurisdiction of the Committee on Ways and Means

                          A. U.S. Constitution

    Article I, section 7, of the Constitution of the United 
States provides as follows:
    All Bills for raising Revenue shall originate in the House 
of Representatives; but the Senate may propose or concur with 
Amendments as on other Bills.
    In addition, Article I, Section 8, Constitution of the 
United States provides the following:

          The Congress shall have Power To lay and collect 
        Taxes, Duties, Imposts and Excises, to pay the Debts 
        and . . . To borrow Money on the credit of the United 
        States.

       B. Rule X, Clause 1, Rules of the House of Representatives

    Rule X, clause 1(s), of the Rules of the House of 
Representatives, in effect during the 105th Congress, provides 
for the jurisdiction of the Committee on Ways and Means, as 
follows:
          (s) Committee on Ways and Means.
                  (1) Customs, collection districts, and ports 
                of entry and delivery.
                  (2) Reciprocal trade agreements.
                  (3) Revenue measures generally.
                  (4) Revenue measures relating to the insular 
                possessions.
                  (5) The bonded debt of the United States 
                (subject to the last sentence of clause 4(g) of 
                this rule). [The last sentence of clause 4(g) 
                requires the Committee on Ways and Means to 
                include in its annual February 25 report to the 
                Budget Committee a specific recommendation as 
                to the appropriate level of the public debt 
                which would then be set forth in the concurrent 
                resolution on the budget and serve as the basis 
                for an increase or decrease in the statutory 
                limit on the debt.]
                  (6) The deposit of public moneys.
                  (7) Transportation of dutiable goods.
                  (8) Tax-exempt foundations and charitable 
                trusts.
                  (9) National Social Security, except (A) 
                health care and facilities programs that are 
                supported from general revenues as opposed to 
                payroll deductions and (B) work incentive 
                programs.

            C. Brief Description of Committee's Jurisdiction

    The foregoing recitation of the provisions of House Rule X, 
clause 1, paragraph (s), does not convey the comprehensive 
nature of the jurisdiction of the Committee on Ways and Means. 
The following summary provides a more complete description:
          (1) Federal revenue measures generally.--The 
        Committee on Ways and Means has the responsibility for 
        raising the revenue required to finance the Federal 
        Government. This includes individual and corporate 
        income taxes, excise taxes, estate taxes, gift taxes, 
        and other miscellaneous taxes.
          (2) The bonded debt of the United States.--The 
        Committee on Ways and Means has jurisdiction over the 
        authority of the Federal Government to borrow money. 
        Title 31 of Chapter 31 of the U.S. Code authorizes the 
        Secretary of the Treasury to conduct any necessary 
        public borrowing subject to a maximum limit on the 
        amount of borrowing outstanding at any one time. This 
        statutory limit on the amount of public debt (``the 
        debt ceiling'') currently is $5.95 trillion. The 
        committee's jurisdiction also includes conditions under 
        which the Department of the Treasury manages the 
        Federal debt, such as restrictions on the conditions 
        under which certain debt instruments are sold.
          (3) National Social Security programs.--The Committee 
        on Ways and Means has jurisdiction over most of the 
        programs authorized by the Social Security Act, which 
        includes not only those programs that are normally 
        referred to colloquially as ``Social Security'' but 
        also social insurance programs and a whole series of 
        grant-in-aid programs to State governments for a 
        variety of purposes. The Social Security Act, as 
        amended, contains 20 titles (a few of which have either 
        expired or have been repealed). The principal programs 
        established by the Social Security Act and under the 
        jurisdiction of the Committee on Ways and Means in the 
        105th Congress can be outlined as follows:
                  (a) Old-age, survivors, and disability 
                insurance (title II)--At present, there are 
                approximately 148 million workers in employment 
                covered by the program, and as of December 
                1997, $366 billion in benefits were being paid 
                annually to 44 million individuals.
                  (b) Medicare (title XVIII)--Provides hospital 
                insurance benefits to 33.4 million persons over 
                the age of 65 and to 5.1 million disabled 
                persons. Voluntary supplementary medical 
                insurance is provided to 32.3 million aged 
                persons and 4.4 million disabled persons. 
                Expenditures under these programs were $213.6 
                billion in fiscal year 1998.
                  (c) Supplemental security income (title 
                XVI)--The SSI program was inaugurated in 
                January 1974 under the provisions of Public Law 
                92-603, as amended. It replaced the former 
                Federal-State programs for the needy aged, 
                blind, and disabled. In 1997, 6.5 million 
                persons received federally administered 
                benefits under the SSI program. Of these 6.5 
                million persons, approximately 1.4 million 
                received benefits on the basis of age, and 5.1 
                million on the basis of blindness or 
                disability. Total federally administered 
                payments during fiscal year 1997 amounted to 
                approximately $29.4 billion, of which $26.5 
                billion were basic Federal benefits and $2.9 
                billion were federally administered State 
                supplements to the payments.
                  (d) Temporary Assistance for Needy Families 
                (TANF) (part A of title IV)--The TANF program 
                is a block grant of about $16.5 billion awarded 
                to states to provide income assistance to poor 
                families, to end dependency on welfare 
                benefits, to prevent nonmarital births, and to 
                encourage marriage. TANF also includes 
                incentive funds for states that achieve the 
                overall program goals and additional incentive 
                funds for states that are successful in 
                reducing nonmarital births. In most cases, TANF 
                benefits for individuals are limited to 5 years 
                and individuals must work to maintain their 
                eligibility. In June of 1998, about 3 million 
                families and 12.2 million individuals received 
                benefits from the TANF program. In fiscal year 
                1997, Federal administrative expenditures 
                totaled $2.3 billion for the child support 
                enforcement program. Child support collections 
                for that year totaled $13.4 billion.
                  (e) Social services (title XX)--Title XX 
                authorizes the Federal Government to reimburse 
                the States for money spent to provide persons 
                with various services. Generally, the specific 
                services provided are determined by each State. 
                The statutory ceiling on Federal matching funds 
                available to the States for fiscal year 1999 
                was $1.9 billion. These funds are allocated on 
                the basis of population.
                  (f) Unemployment compensation programs 
                (titles II, IX, etc.)--These titles include the 
                State unemployment compensation programs and 
                the permanent extended benefits program. In 
                fiscal year 1997, an estimated $21.0 billion 
                was paid in unemployment compensation benefits, 
                with approximately 7.5 million workers 
                receiving unemployment benefits.
                  (g) Child welfare, foster care and adoption 
                assistance (parts B and E of title IV)--
                Provides funds to States for child welfare 
                services, for abused and neglected children; 
                foster care for AFDC children and adoption 
                assistance for children with special needs. In 
                fiscal year 1999, Federal expenditures for 
                child welfare services totaled $292 million. 
                Federal expenditures for foster care were 
                approximately $3.5 billion.
          (4) Trade and tariff legislation.--The Committee on 
        Ways and Means has responsibility over legislation 
        relating to tariffs, import trade, and trade 
        negotiations. In the early days of the Republic, tariff 
        and customs receipts were major sources of revenue for 
        the Federal Government. As the committee with 
        jurisdiction over revenue-raising measures, the 
        Committee on Ways and Means thus evolved as the primary 
        committee responsible for international trade policy.
    The Constitution vests the power to levy tariffs and to 
regulate international commerce specifically in the Congress as 
one of its enumerated powers. Any authority to regulate imports 
or to negotiate trade agreements must therefore be delegated to 
the executive branch through legislative action. Statutes 
including the Reciprocal Trade Agreements Acts beginning in 
1934, the Trade Expansion Act of 1962, the Trade Act of 1974, 
the Trade Agreements Act of 1979, the Trade and Tariff Act of 
1984, the Omnibus Trade and Competitiveness Act of 1988, the 
North American Free Trade Agreement Implementation Act, and the 
Uruguay Round Agreements Act provide the basis for U.S. 
bargaining with other countries to achieve the mutual reduction 
of tariff and nontariff trade barriers under reciprocal trade 
agreements.
    The committee's jurisdiction includes the following 
authorities and programs:
          (a) The tariff schedules and all tariff preference 
        programs, such as the Generalized System of Preferences 
        and the Caribbean Basin Initiative;
          (b) Laws dealing with unfair trade practices, 
        including the antidumping law, countervailing duty law, 
        section 301, and section 337;
          (c) Other laws dealing with import trade, including 
        section 201 (escape clause), section 232 national 
        security controls, section 22 agricultural 
        restrictions, international commodity agreements, 
        textile restrictions under section 204, and any other 
        restrictions or sanctions affecting imports;
          (d) General and specific trade negotiating authority, 
        as well as implementing authority for trade agreements 
        and the grant of normal-trade- relations (NTR) status;
          (e) General and NAFTA-related trade adjustment 
        assistance programs for workers, and trade adjustment 
        assistance for firms;
          (f) Customs administration and enforcement, including 
        rules of origin and country-of origin marking, customs 
        classification, customs valuation, customs user fees, 
        and U.S. participation in the World Customs 
        Organization (WCO);
          (g) Authorization of the budget for the U.S. 
        International Trade Commission (ITC), the U.S. Customs 
        Service, and the Office of the U.S. Trade 
        Representative (USTR).

   D. Revenue Originating Prerogative of the House of Representatives

    The Constitutional Convention debated adopting the British 
model in which the House of Lords could not amend revenue 
legislation sent to it from the House of Commons. Eventually, 
however, the Convention proposed and the States later ratified 
the Constitution providing that ``All bills for raising revenue 
shall originate in the House of Representatives, but the Senate 
may propose or concur with amendments as on other bills.'' 
(Article 1, Section 7, clause 1.)
    In order to pass constitutional scrutiny under this 
``origination clause,'' a tax bill must be passed first by the 
House of Representatives. After the House has completed action 
on a bill and approved it by a majority vote, the bill is 
transmitted to the Senate for formal action. The Senate may 
have already reviewed issues raised by the bill before its 
transmission. For example, the Senate Committee on Finance 
frequently holds hearings on tax legislative proposals before 
the legislation embodying those proposals is transmitted from 
the House of Representatives. On occasion, the Senate will 
consider a revenue bill in the form of a Senate or ``S.'' bill, 
and then await passage of a revenue (``H.R.'') bill from the 
House. The Senate then will add or substitute provisions of the 
``S.'' bill as an amendment to the ``H.R.'' bill and send the 
``H.R.'' bill back to the House of Representatives for its 
concurrence or for conference on the differing provisions.

   E. The House's Exercise of its Constitutional Prerogative: ``Blue-
                               Slipping''

    When a Senate bill or amendment to a House bill infringes 
on the constitutional prerogative of the House to originate 
revenue measures, that infringement may be raised in the House 
as a matter of privilege. That privilege has also been asserted 
on a Senate amendment to a House amendment to a Senate bill 
(see 96th Congress, 1st Session, November 8, 1979, 
Congressional Record, p. H10425).
    Note that the House in its sole discretion may determine 
that legislation passed by the Senate infringes on its 
prerogative to originate revenue legislation. In the absence of 
such determination by the House, the Federal courts are 
occasionally asked to rule a certain revenue measure to be 
unconstitutional as not having originated in the House (see 
U.S. v. Munoz-Flores, 495 U.S. 385 (1990).
    Senate bills or amendments to nonrevenue bills infringe on 
the House's prerogative even if they do not raise or reduce 
revenue. Such infringements are referred to as ``revenue 
affecting.'' Thus, any import ban which could result in lost 
customs tariffs must originate in the House (100th Congress, 
1st Session, July 30, 1987 100th Congress, 2d Session, June 16, 
1988, Congressional Record, p. H4356).
    Offending bills and amendments are returned to the Senate 
through the passage in the House of a House Resolution which 
states that the Senate provision: ``in the opinion of the 
House, contravenes the first clause of the seventh section of 
the first article of the Constitution of the United States and 
is an infringement of the privilege of the House and that such 
bill be respectfully returned to the Senate with a message 
communicating this resolution'' (e.g., 100th Congress, 1st 
Session, July 30, 1987, Congressional Record, p. H6808) This 
practice is referred to as ``blue slipping'' because the 
resolution returning the offending bill to the Senate is 
printed on blue paper.
    In other cases, the Committee of the Whole House has passed 
a similar or identical House bill in lieu of a Senate bill or 
amendment (e.g., 91st Congress, 2d Congress, May 11, 1970, 
Congressional Record, pp. H14951-14960). The Committee on Ways 
and Means has also reported bills to the House which were 
approved and sent to the Senate in lieu of Senate bills (e.g., 
93d Congress, 1st Session, November 6, 1973, Congressional 
Record, pp. 36006-36008). In other cases, the Senate has 
substituted a House bill or delayed action on its own 
legislation to await a proper revenue affecting bill or 
amendment from the House (see 95th Congress, 2d Session, 
September 22, 1978, Congressional Record, p. H30960; January 
22, 1980, Congressional Record, p. S107).
    Any Member may offer a resolution seeking to invoke Article 
I, Section 7. However, the determination that a bill violates 
the Origination Clause has been traditionally made by members 
of the Committee on Ways and Means, and the resolution has been 
offered by the Chairman or another Member of the Committee on 
Ways and Means. Because Article I, Section 7 involves the 
privileges of the House, a blue-slip resolution offered by the 
Chairman or other member of the Committee on Ways and Means has 
been typically adopted by voice vote on the House Floor. 
However, in cases where the Chairman of the Committee on Ways 
and Means did not believe that the bill in question violated 
the Origination Clause or the objection had been dealt with in 
another manner, resolutions offered by other Members of the 
House have been tabled. [See adoption of motion by Mr. 
Rostenkowski to table H. Res. 571, 97-2, p. 22127.]

       BLUE SLIP RESOLUTIONS--97TH CONGRESS THROUGH 105TH CONGRESS
                           CHRONOLOGICAL LIST
[Resolutions passed by the House returning to the Senate bills passed in
  violation of the origination clause of the United States Constitution
                   (Clause 1, Section 7 of Article 1)]
------------------------------------------------------------------------
                                           Description of Senate action
  H. Res., sponsor, and date of House     (and related House action, if
                passage                                any
------------------------------------------------------------------------
105th Congress:
    H. Res. 601, Mr. Crane, Oct. 15,     On October 8, 1998, the Senate
     1998.                                passed S. 361, the Tiger and
                                          Rhinoceros Conservation Act of
                                          1998. This legislation would
                                          have had the effect of
                                          creating a new basis and
                                          mechanism for applying import
                                          restrictions for products
                                          intended for human consumption
                                          or application containing (or
                                          labeled as containing) any
                                          substance derived from tigers
                                          or rhinoceroses. The proposed
                                          change in the import laws
                                          constituted a revenue measure
                                          in the constitutional sense,
                                          because it would have had a
                                          direct impact on customs
                                          revenues.
    H. Res. 379, Mr. Ensign, Mar. 5,     On April 15, 1997, the Senate
     1998.                                passed S. 104, the Nuclear
                                          Waste Policy Act of 1997. This
                                          legislation would have
                                          repealed a revenue provision
                                          and replaced it with a user
                                          fee. The revenue provision in
                                          question was a fee of 1 mill
                                          per kilowatt hour of
                                          electricity generated by
                                          nuclear power imposed by the
                                          Nuclear Waste Policy Act of
                                          1982. The proposed user fee in
                                          the legislation would have
                                          been limited to the amount
                                          appropriated for nuclear waste
                                          disposal. The original fee was
                                          uncapped, and, in fact,
                                          because the fees collected
                                          exceeded the associated costs,
                                          it was being used as revenue
                                          to finance the federal
                                          government generally. Its
                                          proposed repeal therefore
                                          constituted a revenue measure
                                          in the constitutional sense
                                          because it would have had a
                                          direct impact on federal
                                          revenues.
104th Congress:
    H. Res. 554, Mr. Crane, Sept. 28,    On June 30, 1996, the Senate
     1996.                                passed H.R. 400, the Anaktuvuk
                                          Pass Land Exchange and
                                          Wilderness Redesignation Act
                                          of 1995, with an amendment.
                                          Section 204(a) of the Senate
                                          amendment would have
                                          overridden existing tax law by
                                          expanding the definition of
                                          actions not subject to
                                          federal, state, or local
                                          taxation under the Alaska
                                          Native Claims Settlement Act.
                                          These changes constituted a
                                          revenue measure in the
                                          constitutional sense because
                                          they would have had a direct
                                          impact on federal revenues.
    H. Res. 545, Mr. Archer, Sept. 27,   On September 25, 1996, the
     1996.                                Senate passed S. 1311, the
                                          National Physical Fitness and
                                          Sports Foundation
                                          Establishment Act. Section 2
                                          of the bill would have waived
                                          the application of certain
                                          rules governing recognition of
                                          tax-exempt status for the
                                          foundation established under
                                          this legislation. This
                                          exemption constituted a
                                          revenue measure in the
                                          constitutional sense because
                                          it would have had a direct
                                          impact on federal revenues.
    H. Res. 402, Mr. Shaw, Apr. 16,      On January 26, 1996, the Senate
     1996.                                passed S. 1463, to amend the
                                          Trade Act of 1974. The bill
                                          would have changed the
                                          authority and procedure for
                                          investigations by the
                                          International Trade Commission
                                          for certain domestic
                                          agricultural products. Such
                                          investigations are a predicate
                                          necessary for achieving access
                                          to desired trade remedies that
                                          the President may order, such
                                          as tariff adjustments, tariff-
                                          rate quotas, quantitative
                                          restrictions, or negotiation
                                          of trade agreements to limit
                                          imports. By creating a new
                                          basis and mechanism for import
                                          restrictions under authority
                                          granted to the President, the
                                          bill constituted a revenue
                                          measure in the constitutional
                                          sense because it would have
                                          had a direct impact on customs
                                          revenues.
    H. Res. 387, Mr. Crane, Mar. 21,     On February 1, 1996, the Senate
     1996.                                passed S. 1518, repealing the
                                          Tea Importation Act of 1897.
                                          Under existing law in 1996, it
                                          was unlawful to import
                                          substandard tea, except as
                                          provided in the Harmonized
                                          Tariff Schedule. Changing
                                          import restrictions
                                          constituted a revenue measure
                                          in the constitutional sense
                                          because it would have had a
                                          direct impact on customs
                                          revenues.
103d Congress:
    H. Res. 577, Mr. Gibbons, Oct. 7,    On October 3, 1994, the Senate
     1994.                                passed S. 1216, the Crow
                                          Boundary Settlement Act of
                                          1994. The bill would have
                                          overridden existing tax law by
                                          exempting certain payments and
                                          benefits from taxation. These
                                          exemptions constituted a
                                          revenue measure in the
                                          constitutional sense because
                                          they would have had a direct
                                          impact on federal revenues.
    H. Res. 518, Mr. Gibbons, Aug. 12,   On July 20,1994, the Senate
     1994.                                passed H.R. 4554, the
                                          Agriculture and Rural
                                          Development Appropriation for
                                          FY1995, with amendments.
                                          Senate amendment 83 would have
                                          provided authority for the
                                          Food and Drug Administration
                                          to collect fees to cover the
                                          costs of regulation of
                                          products under their
                                          jurisdiction. However, these
                                          fees were not limited to
                                          covering the cost of specified
                                          regulatory activities, and
                                          would have been charged to a
                                          broad cross-section of the
                                          public (rather than been
                                          limited to those who would
                                          have benefited from the
                                          regulatory activities) to fund
                                          the cost of the FDA's
                                          activities generally. These
                                          fees constituted a revenue
                                          measure in the constitutional
                                          sense because they were not
                                          based on a direct relationship
                                          between their level and the
                                          cost of the particular
                                          government activity for which
                                          they would have been assessed,
                                          and would have had a direct
                                          impact on federal revenues.
    H. Res. 487, Mr. Gibbons, July 21,   On May 25, 1994, the Senate
     1994.                                passed S. 1030, the Veterans
                                          Health Programs Improvement
                                          Act of 1994. A provision in
                                          the bill would have exempted
                                          from taxation certain payments
                                          made on behalf of participants
                                          in the Education Debt
                                          Reduction Program. This
                                          provision constituted a
                                          revenue measure in the
                                          constitutional sense because
                                          it would have had a direct
                                          impact on federal revenues.
    H. Res. 486, Mr. Gibbons, July 21,   On May 29, 1994, the Senate
     1994.                                passed S. 729, to amend the
                                          Toxic Substances Control Act.
                                          Title I of the bill included
                                          several provisions to prohibit
                                          the importation of specific
                                          categories of products which
                                          contained more than specified
                                          quantities of lead. By
                                          establishing these import
                                          restrictions, the bill
                                          constituted a revenue measure
                                          in the constitutional sense
                                          because it would have had a
                                          direct impact on customs
                                          revenues.
    H.Res. 479, Mr. Rangel, July 14,     On June 22, 1994, the Senate
     1994.                                passed H.R. 4539, the
                                          Treasury, Postal Service, and
                                          General Government
                                          Appropriation for FY1995, with
                                          amendments. Senate amendment
                                          104 would have prohibited the
                                          Treasury from using
                                          appropriations to enforce the
                                          Internal Revenue Code
                                          requirement for the use of
                                          undyed diesel fuel in
                                          recreational motorboats. This
                                          prohibition therefore
                                          constituted a revenue measure
                                          in the constitutional sense
                                          because it would have had a
                                          direct impact on federal
                                          revenues.
 
102d Congress:
    H. Res. 373, Mr. Rostenkowski, Feb.  On August 1, 1991, the Senate
     25, 1992.                            passed S. 884 amended, the
                                          Driftnet Moratorium
                                          Enforcement Act of 1991; This
                                          legislation would require the
                                          President to impose economic
                                          sanctions against countries
                                          that fail to eliminate large-
                                          scale driftnet fishing.
                                          Foremost among the sanction
                                          provisions are those which
                                          impose a ban on certain
                                          imports into the United States
                                          from countries which continue
                                          to engage in driftnet fishing
                                          on the high seas after a
                                          certain date. These changes in
                                          our tariff laws constitute a
                                          revenue measure in the
                                          constitutional sense, because
                                          they would have a direct
                                          effect on customs revenues.
    H. Res. 267, Mr. Rostenkowski, Oct.  On February 20, 1991, the
     31, 1991.                            Senate passed S. 320, to
                                          reauthorize the Export
                                          Administration Act of 1979.
                                          This legislation contains
                                          several provisions which
                                          impose, or authorize the
                                          imposition of, a ban on
                                          imports into the United
                                          States. Among the provisions
                                          containing import sanctions
                                          are those relating to certain
                                          practices by Iraq, the
                                          proliferation and use of
                                          chemical and biological
                                          weapons, and the transfer of
                                          missile technology. These
                                          changes in our tariff laws
                                          constitute a revenue measure
                                          in the constitutional sense,
                                          because they would have a
                                          direct effect on customs
                                          revenues.
    H. Res. 251, Mr. Russo, Oct. 22,     On July 11, 1991, the Senate
     1991.                                passed S. 1241, the Violent
                                          Crime Act of 1991. This
                                          legislation contains several
                                          amendments to the Internal
                                          Revenue Code. Sec. 812(f)
                                          provides that the police corps
                                          scholarships established under
                                          the bill would not be included
                                          in gross income for tax
                                          purposes. In addition, secs.
                                          1228, 1231, and 1232 each make
                                          amendments to the Tax Code
                                          with respect to violations of
                                          certain firearms provisions.
                                          Finally, title VII amends sec.
                                          922 of title VIII of the U.S.
                                          Code, making it illegal to
                                          transfer, import or possess
                                          assault weapons. These changes
                                          in our tariff and tax laws
                                          constitute revenue measures in
                                          the constitutional sense,
                                          because they would have an
                                          immediate impact on revenues
                                          anticipated by U.S. Customs
                                          and the Internal Revenue
                                          Services.
101st Congress:
    H. Res. 287, Mr. Cardin, Nov. 9,     On August 4, 1989, the Senate
     1989.                                passed S. 686, the Oil
                                          Pollution Liability and
                                          Compensation Act of 1989. This
                                          legislation contained a
                                          provision which would have
                                          allowed a credit against the
                                          oil spill liability tax for
                                          amounts transferred from the
                                          Trans-Alaska Pipeline Trust
                                          Fund to the Oil Spill
                                          Liability Trust Fund.
    H. Res. 177, Mr. Rostenkowski, June  On Apr. 19, 1989, the Senate
     15, 1989.                            passed S. 774, the Financial
                                          Institution Reform, Recovery
                                          and Enforcement Act of 1989.
                                          This legislation would create
                                          two corporations to administer
                                          the financial assistance under
                                          the bill: the Resolution Trust
                                          Corporation and the Resolution
                                          Financing Corporation. S. 774
                                          would have conferred tax-
                                          exempt status to these two
                                          corporations. Without these
                                          two tax provisions, these two
                                          corporations would be taxable
                                          entities under the Federal
                                          income tax.
100th Congress:
    H. Res. 235, Mr. Rostenkowski, July  On Mar. 30, 1987, the Senate
     30, 1987.                            passed S. 829, legislation
                                          which would authorize
                                          appropriations for the U.S.
                                          International Trade
                                          Commission, the U.S. Customs
                                          Service, and the Office of the
                                          U.S. Trade Representative for
                                          fiscal year 1988, and for
                                          other purposes. In addition,
                                          the bill contained a provision
                                          relating to imports from the
                                          Soviet Union which amends
                                          provisions of the Tariff Act
                                          of 1930.
    H. Res. 474, Mr. Rostenkowski, June  On 0ct. 6, 1987, the Senate
     16, 1988 (see also H.R. 3391).       passed S. 1748, legislation
                                          which would prohibit the
                                          importation into the United
                                          States of all products from
                                          Iran. (The House passed H.R.
                                          3391, which included similar
                                          provisions, on 0ct. 6, 1987.)
    H. Res. 479, Mr. Rostenkowski, June  On May 13, 1987, the Senate
     21, 1988 (see also H.R. 2792 and     passed S. 727, legislation
     H.R. 4333).                          which would clarify Indian
                                          treaties and Executive orders
                                          with respect to fishing
                                          rights. This legislation dealt
                                          with the tax treatment of
                                          income derived from the
                                          exercise of Indian treaty
                                          fishing rights. (The House
                                          passed H.R. 2792, which
                                          included similar provisions,
                                          on June 20, 1988, under
                                          suspension of the rules and
                                          was enacted into law as part
                                          of Public Law 100-647, H.R.
                                          4333.)
    H. Res. 544, Mr. Rostenkowski,       On Sept. 9, 1988, the Senate
     Sept. 23, 1988 (see also H.R.        passed S. 2662, the Textile
     1154).                               and Apparel Trade Act of 1988.
                                          This legislation would impose
                                          global import quotas on
                                          textiles and footwear
                                          products.
    H. Res. 552, Mr. Rostenkowski,       On Sept. 9, 1988, the Senate
     Sept. 28, 1988.                      passed S. 2763, the Genocide
                                          Act of 1988. This legislation
                                          contained a ban on the
                                          importation of all oil and oil
                                          products from Iraq.
    H. Res. 603, Mr. Rostenkowski, Oct.  On Mar. 30, 1988, the Senate
     21, 1988.                            passed S. 2097, the Uranium
                                          Mill Tailings Remedial Action
                                          Amendments of 1987. This
                                          legislation would establish a
                                          Federal fund to assist in the
                                          financing of reclamation and
                                          other remedial action at
                                          currently active uranium and
                                          thorium processing sites and
                                          would increase the demand for
                                          domestic uranium. The fund
                                          would be financed in part by
                                          what are called ``mandatory
                                          fees'' which are equal to $22
                                          per kilogram for uranium
                                          contained in fuel assemblies
                                          initially loaded into civilian
                                          nuclear power reactors during
                                          calendar years 1989- 1993. In
                                          addition, S. 2097 would impose
                                          charges on domestic utilities
                                          that use foreign-source
                                          uranium in new fuel assemblies
                                          loaded in their nuclear
                                          reactors.
    H. Res. 604, Mr. Rostenkowski, Oct.  On Aug. 8, 1988, the Senate
     21, 1988.                            passed H.R. 1315, legislation
                                          which would authorize
                                          appropriations for the Nuclear
                                          Regulatory Commission for
                                          fiscal years 1988 and 1989.
                                          Title IV of the legislation
                                          would, among other things,
                                          establish a Federal fund to
                                          assist in the financing of
                                          reclamation and other remedial
                                          action at currently active
                                          uranium and thorium processing
                                          sites and would assist the
                                          domestic uranium industry by
                                          increasing the demand for
                                          domestic uranium. The fund
                                          would be financed in part by
                                          what are called ``mandatory
                                          fees'' equal to $72 per
                                          kilogram of uranium contained
                                          in fuel assemblies initially
                                          loaded into civilian nuclear
                                          power reactors on or after
                                          Jan. 1, 1988. These fees would
                                          be paid by licensees of
                                          civilian nuclear power
                                          reactors and would be in place
                                          until $1 billion had been
                                          raised.
99th Congress:
    H. Res. 283, Mr. Rostenkowski, Oct.  On Sept. 26, 1985, the Senate
     1, 1985.                             passed S. 1712, legislation
                                          which would extend the 16-
                                          cents-per-pack cigarette
                                          excise tax rate for 45 days,
                                          through Nov. 14, 1985. (The
                                          House passed H.R. 3452, which
                                          included a similar extension,
                                          on Sept. 30, 1985.)
    H. Res. 562, Mr. Rostenkowski,       The Senate passed S. 638,
     Sept. 25, 1986.                      legislation to provide for the
                                          sale of Conrail to the Norfolk
                                          Southern Railroad. The
                                          legislation contained numerous
                                          provisions relating to the tax
                                          treatment of the sale of
                                          Conrail.
98th Congress:
    H. Res. 195, Mr. Rostenkowski, June  On Apr. 21, 1983, the Senate
     17, 1983.                            passed S. 144, a bill to
                                          insure the continued expansion
                                          of international market
                                          opportunities in trade, trade
                                          in services and investment for
                                          the United States, and for
                                          other purposes.
97th Congress:
    None.
------------------------------------------------------------------------

  F. Prerogative Under the Rules of the House Over ``Revenue Measures 
                              Generally''

    In the House of Representatives, tax legislation is 
initiated by the Committee on Ways and Means. The Committee's 
exclusive prerogative to report ``revenue measures generally'' 
is provided by Rule X(1)(v) of the Rules of the House of 
Representatives. The jurisdiction of the Committee on Ways and 
Means under Rule X(1)(v) is protected through the exercise of 
Rule XXI(5)(b) which states:
    No bill or joint resolution carrying a tax or tariff 
measure shall be reported by any committee not having 
jurisdiction to report tax and tariff measures, nor shall an 
amendment in the House or proposed by the Senate carrying a tax 
or tariff measure be in order during the consideration of a 
bill or joint resolution reported by a committee not having 
that jurisdiction. A question of order on a tax or tariff 
measure in any such bill, joint resolution, or amendment 
thereto may be raised at any time.
    Based on the precedents of the House, especially those 
involving Rule XXI(5)(b), the following statements can be made 
concerning points of order made under the rule.
    1. Timeliness.--The point of order can be raised at any 
point during consideration of the bill. However, that section 
of the bill in which the ``tax or tariff'' provision lies must 
either have been previously read or currently open for 
amendment. A point of order may not be raised after the 
Committee of the Whole has risen and reported the bill to the 
House. A point of order against an amendment must be made prior 
to its adoption.
    2. Effect.--If a point of order is sustained, the effect is 
that the provision in the bill or amendment is automatically 
deleted.
    3. Substance over form.--A provision need not involve an 
amendment to the Internal Revenue Code (IRC) or the Harmonized 
Tariff Schedule (HTS) in order to be determined to be a ``tax 
or tariff'' provision.
    4. Revenue decreases and increases.--A provision need not 
raise revenue in order to be found to be a ``tax or tariff 
measure.'' Provisions which would have the effect of decreasing 
revenues are also covered by the rule. Similarly, provisions 
which could have a revenue effect have been determined to be 
covered by the rule.
    The following is a detailed listing of each of the 
occasions on which points of order relating to the rule have 
been sustained:

      G. Points of Order--House Rule XXI, Clause 5, Paragraph (b) 
                           Chronological List

September 3, 1997

            H.R. 2159, Foreign Operations Appropriations for FY 1998
    A point of order was raised against section 539 of the 
bill, which would have restricted the President's ability to 
issue an executive order lifting import sanctions against 
Yugoslavia (Serbia). The Chair ruled that since current law 
allowed the President to waive the application of certain 
sanctions, including import prohibitions which affect tariff 
collections, the provision in question was a tariff measure 
within the meaning of Rule XXI, clause 5(b). The point of order 
was sustained, and the provision stricken from the bill. [105-
1, p. H 6731]

July 17, 1996

            H.R. 3756, Treasury, Postal Service, and General Government 
                    Appropriations Act of 1997
    A point of order was raised against an amendment which 
prohibited the use of funds by the United States Customs 
Service to take any action that allowed certain imports into 
the United States from the People's Republic of China. The 
point of order was sustained. [104-2, p. H 7708]

May 9, 1995

            H.R. 1361, Coast Guard authorization
    A point of order was raised against an amendment which 
increased certain fees for large foreign-flag cruise ships. The 
Chair ruled that by increasing the fees charged by the Coast 
Guard for inspecting large foreign-flag cruise ships by an 
unspecified amount in order to offset a decrease in fees for 
other vessels, the amendment attenuated the relationship 
between the amount of the fee and the cost of the particular 
government activity for which it was assessed. Therefore the 
increased fee qualified as a tax or tariff within the meaning 
of Rule XXI, clause 5(b). The point of order was sustained, and 
theamendment ruled out of order. [1-4-1, p. H 4593]

June 15, 1994

            H.R. 4539, Treasury, Postal Service, and General Government 
                    Appropriation for FY 1995
    A point of order was raised against section 527 of the 
bill, which would have amended the Harmonized Tariff Schedule 
to create a new tariff classification. The new classification 
would have changed the rate of duty on the import of certain 
fabrics intended for use in the manufacture of hot air 
balloons, thus having direct impact on customs revenues. The 
point of order was conceded and sustained, and the provision 
was stricken from the bill. [103-2, p. H 4531]

September 16, 1992

            H.R. 5231, The National Competitiveness Act of 1992
    A point of order was raised against an amendment offered by 
Rep. Walker. The bill was reported solely from the Committee on 
Science and Technology and amended the Internal Revenue Code to 
provide, inter alia, changes in the tax treatment of capital 
gains.
    The Chair sustained the point of order without elaboration. 
[H102-p. H8621]

October 23, 1990

            H.R. 5021, Department of Commerce, Justice and State, the 
                    Judiciary and related Agencies Appropriations Act, 
                    1991
    A point of order was raised against amendment 139 which 
increased the rate of fees paid to the Securities and Exchange 
Commission at the time of filing a registration statement. The 
Chair ruled that since the amendment provided that the 
increased level of fees would be deposited in the Treasury, the 
fee involved was in reality a tax and the revenues were to be 
used to defray general governmental costs. The point of order 
was conceded and sustained. [101-2, p. H 11412]

July 13, 1990

            H.R. 5241, Treasury, Postal Service and General Government 
                    Appropriations Act of 1991
    A point of order was raised against section 528 which 
prohibited that ``no funds appropriated'' would be used to 
impose or assess any tax under section 4181 of the Internal 
Revenue Code relating to the excise tax on the manufacture of 
firearms. The point of order was conceded and sustained. [101-
2, p. H 4692]

July 13, 1990

            H.R. 5241, Treasury, Postal Service and General Government 
                    Appropriations Act of 1991
    A point of order was raised against section 524 which 
prohibited the Internal Revenue Service from enforcing rules 
governing the antidiscrimination rules of the exclusion for 
employer provided health-care plans (section 89 of the Internal 
Revenue Code). The point of order was conceded and sustained. 
[101-2, p. H 4692]

October 5, 1989

            H.R. 3299, Omnibus Budget Reconciliation Act of 1989
    A point of order was raised against section 3201 which 
imposed fees on the filing of certain forms required to be 
filed annually in connection with maintaining pension and 
benefit plans. The point of order was sustained with the Chair 
ruling that the revenue raised funded ``general government 
activity.'' [101-1, p. H 6662]

October 4, 1989

            H.R. 3299, Omnibus Budget Reconciliation Act of 1989
    A point of order was raised against section 3156 which 
imposed a ``Termination Fee.'' Under the provision of the bill, 
an employer who terminated a pension plan in a standard 
termination was required to pay a $200-per-participant fee to 
the Pension Benefit Guaranty Corporation (PBGC), the Federal 
insurance agency established to insure defined benefit pension 
plans against insolvency. The point of order was conceded and 
sustained. [101-1, p. H 6621]

October 4, 1989

            H.R. 3299, Omnibus Budget Reconciliation Act of 1989
    A point of order was raised against section 3131(b) which 
exempted multi-employer pension plans from the full funding 
limits of the Internal Revenue Code, section 412(c)(7). This 
provision directly amended the Internal Revenue Code to 
allowthe deductibility of contributions to a multi-employer pension 
plan in excess of the full funding limit. The point of order was 
conceded and sustained. [101-1, p. H 6622]

October 4, 1989

            H.R. 3299, Omnibus Budget Reconciliation Act of 1989
    A point of order was raised against section 7002 which 
imposed an annual fee of $1 per acre on the holder of Outer 
Continental Shelf leases. This fee has been designated to 
offset the costs of ocean related environmental research, 
assessment, and protection programs. The point of order was 
sustained with the Chair stating that ``a provision raising 
revenue to finance general government functions improperly 
characterized as a tax within the jurisdiction of Clause 5(b) 
of Rule XXI. [101-1, p. H 6610]

October 4, 1989

            H.R. 3299, Omnibus Budget Reconciliation Act of 1989
    A point of order was raised against section 7002 which 
imposed a fee of $20 per passenger on vessels engaged in U.S. 
cruise trade or which offer off-shore gambling. The proceeds of 
this fee were to be deposited in both the Harbor Maintenance 
Trust Fund and the Treasury's general fund. The point of order 
was conceded and sustained. [101-1, p. H 6620]

September 30, 1988

            H.R. 4637, Conference Agreement to accompany the Foreign 
                    Operations, Export Financing and Related Programs 
                    Appropriations Act of 1989
    A point of order was raised against the motion to concur in 
the Senate amendment No. 176 which provided that S. 2848 
(Sanctions Against Iraqi Chemical Weapons Use Act), be added to 
the bill. The point of order was conceded and sustained. [100-
2, p. H 9236]

June 25, 1987

            H.R. 3545, Budget Reconciliation Act of 1987
    A point of order was raised against the section of the bill 
providing that ``all earnings and distributions'' from the 
Enjebi Community Trust Fund, ``shall not be subject to any form 
of Federal, State, or local taxation.'' The point of order was 
conceded and sustained. [100-1, p. H 5539-40]

August 1, 1986

            H.R. 5294, Appropriations, Treasury, Postal Service and 
                    General Government Appropriations, 1987
    A point of order was raised against section 103 which 
denied funds to the Internal Revenue Service to impose vesting 
requirements for qualified pension funds more stringent than 4/
40. As a result, legally collectible taxes on employer 
contributions to such plans would be indefinitely deferred. The 
point of order was conceded and sustained. [99-2, p. H 5311]

August 1, 1986

            H.R. 5294, Appropriations, Treasury, Postal Service and 
                    General Government Appropriations, 1987
    A point of order was raised against section 3 which 
prohibited the use of funds to implement regulations issued by 
the Department of the Treasury to implement section 274(d) of 
the Internal Revenue Code relating to the duty imposed on 
taxpayers to substantiate deductibility of certain expenses 
relating to travel, gifts, and entertainment.
    The Chair sustained the point of order stating that a 
limitation otherwise in order under Clause 2(c), of House Rule 
XXI which ``effectively and inherently either preclude[s] the 
IRS from collecting revenues otherwise due to be [owed] under 
provision of the Internal Revenue Code or require[s] the 
collection of revenue not legally due and owing constitutes a 
tax provision within the meaning of Rule XXI, Clause 5(b).''
    The Chair also noted that when the point of order was 
raised that under the rule the point of order against the 
provision could be raised at any point during the consideration 
of the bill. [99-2, p. H 5310]

October 24, 1986

            H.R. 3500, Budget Reconciliation Act of 1985
    A point of order was raised against section 3113. The 
provision in the reconciliation bill reported from the Budget 
Committee contained a recommendation from the Committee on 
Education and Labor to exclude certain interest on obligations 
to Student Loan Marketing Association from Application of 
Internal Revenue Code (IRC), section 265 which denies a 
deduction for certain expenses and interest relating to the 
production of tax-exempt income. The point of order was 
sustained. [99-1, p. H 5310]

October 24, 1985

            H.R. 3500, Budget Reconciliation Act of 1985
    A point of order was raised against section 6701 which had 
been reported from the Committee on the Budget containing a 
recommendation of the Committee on Merchant Marine and 
Fisheries. Section 6701 expanded tax benefits available to ship 
owners through the ``capital construction fund'' (section 7518 
of the Internal Revenue Code), by permitting repatriation of 
foreign-source income to avoid U.S. taxes and expanding the 
definition of vessels eligible to establish such tax-exempt 
funds. [99-1, p. H 9189]

July 26, 1985

            H.R. 3036, Appropriations, Treasury, Postal Service, and 
                    General Government Appropriation, 1986
    A point of order was raised against section 106 which 
prohibited the use of funds to implement or enforce regulations 
imposing or collecting a tax on the interest deferral from 
entrance or accommodation fees paid by elderly residents of 
continuing care facilities (section 7872 of the Internal 
Revenue Code). The Chair sustained the point of order against 
the provision as a tax provision within the meaning of House 
Rule XXI, Clause 5(b). [99-1, p. H 6418]

July 11, 1985

            H.R. 1555, International Security and Development Act of 
                    1985
    A point of order was raised against section 1208 which 
denied trade benefits to Afghanistan, provided for the denial 
of most favored nation status to Afghanistan and denied trade 
credits to Afghanistan. The point of order was conceded and 
sustained. [99-1, p. H 5489]

June 4, 1985

            H.R. 1460, Anti-Apartheid Act of 1985
    A point of order was raised against an amendment to 
prohibit the entry of South African Krugerrands or gold coins 
into the customs territory of the United States unless uniform 
5 percent fees were paid. The point of order was sustained on 
the grounds that the fee was equivalent to a tariff uniform 
charge imposed at ports of entry with proceeds deposited in the 
Treasury. [99-1, p. H 3762]

September 12, 1984

            H.R. 5798, Conference Report to accompany the 
                    Appropriations, Treasury, Postal Service, Executive 
                    Office of the President and certain independent 
                    agencies Appropriation, 1985
    A point of order was raised against a Senate amendment, No. 
92 which amended the existing customs law under the Tariff Act 
of 1930 with respect to seizures and forfeitures of property by 
the Customs Service. The point of order was conceded and 
sustained. [98-2, p. H 9407]

September 12, 1984

            H.R. 5798, Conference Report to accompany the 
                    Appropriations, Treasury, Postal Service, Executive 
                    Office of the President and certain independent 
                    agencies Appropriation, 1985
    A point of order was raised against a Senate amendment, No. 
26 which amended the tariff schedule of the United States 
(TSUS) to provide duty-free importation of a telescope for the 
University of Arizona. The point of order was conceded and 
sustained. [98-2, p. H 9396]

September 12, 1984

            H.R. 5798, Conference Report to accompany the 
                    Appropriations, Treasury, Postal Service, Executive 
                    Office of the President and certain independent 
                    agencies Appropriation, 1985
    A point of order was raised against a Senate amendment, No. 
24 which provided that ``none of the funds appropriated by this 
act or any other act'' shall be used to impose or assess the 
manufacturer's excise tax on sporting goods. The point of order 
specifically stated that the terms ``tax'' and ``tariff'' under 
House Rule XXI, Clause 5(b), included provisions such as these 
contained in the amendment which would result in less revenue 
spent than under the operation of existing law. The point of 
order was conceded and sustained. [98-2, p. H 9395-9396]

October 27, 1983

            H.R. 4139, Conference Report to accompany the 
                    Appropriations, Treasury, Postal Service, Executive 
                    Office of the President and certain independent 
                    agencies Appropriation, 1984
    The Chair sustained a point of order against section 511 
which would have prohibited the Customs Service from enforcing 
a provision of law permitting agricultural products to enter 
the United States duty-free under the Caribbean Basin 
Initiative. The Chair ruled that the effect of the provision 
was to cause duties on certain imports to be imposed where none 
is required and to require collections of revenue contrary to 
existing tariff laws and that, as a result, section 511 was a 
tariff provision rather than a limitation of appropriated 
funds. [98-1, p. H 8717]

September 21, 1983

            H.R. 1036, Community Renewal Employment Act
    The Chair sustained a point of order against a motion to 
recommit a bill to a committee without jurisdiction over 
revenue measures (the Committee on Education and Labor), and to 
report the bill back to the House with tax provisions relating 
to ``enterprise zones.'' The motion was ruled to violate House 
Rule XVI, Clause 7, and House Rule XXI Clause 5(b). [98-1, p. H 
7244]

        H. Restrictions on ``Federal Income Tax Rate Increases''

    House Rule XXI, clause 5(c) and (d) prohibit retroactive 
Federal income tax rate increases and require a supermajority 
[3/5] vote for any bill containing a prospective Federal income 
tax rate increase. The wording of the rule and its legislative 
history make it clear that the rule applies only to increases 
in specific statutory rates in the Internal Revenue Code and 
not to provisions merely because they raise revenue or 
otherwise modify the income tax base.

                      Appendix II. Historical Note

    The Committee on Ways and Means was first established as an 
ad hoc committee in the first session of the First Congress, on 
July 24, 1789. Mr. Fitzsimons, from Pennsylvania, in commenting 
on the report of a select committee concerning appropriations 
and revenues, pointed out the desirability of having a 
committee to review the expenditure needs of the Government and 
the resources available, as follows:
    The finances of America have frequently been mentioned in 
this House as being very inadequate to the demands. I have 
never been of a different opinion, and do believe that the 
funds of this country, if properly drawn into operation, will 
be equal to every claim. The estimate of supplies necessary for 
the current year appears very great from a report on your 
table, and which report has found its way into the public 
newspapers. I said, on a former occasion, and I repeat it now, 
notwithstanding what is set forth in the estimate, that a 
revenue of $3 million in specie, will enable us to provide 
every supply necessary to support the Government, and pay the 
interest and installments on the foreign and domestic debt. If 
we wish to have more particular information on these points, we 
ought to appoint a Committee of Ways and Means, to whom, among 
other things, the estimate of supplies may be referred, and 
this ought to be done speedily, if we mean to do it this 
session.
    After discussion, the motion was agreed to and a committee 
consisting of one member from each State (North Carolina and 
Rhode Island had not yet ratified the Constitution) was 
appointed as follows: Messrs. Fitzsimons (Pennsylvania), Vining 
(Delaware), Livermore (New Hampshire), Cadwalader (New Jersey), 
Laurance (New York), Wadsworth (Connecticut), Jackson 
(Georgia), Gerry (Massachusetts), Smith (Maryland), Smith 
(South Carolina), and Madison (Virginia).
    While there does not appear to be any direct relationship, 
it is interesting to note that the appointment of this ad hoc 
committee came within a few weeks after the House, in Committee 
of the Whole, had spent a good part of the months of April, 
May, and June in wrestling with the details involved in writing 
bills ``for laying a duty on goods, wares, and merchandises 
imported into the United States'' and for imposing duties on 
tonnage. Tariffs, of course, became a prime revenue source for 
the new government.
    However, the results of this ad hoc committee are not 
clear. It existed for a period of only 8 weeks, being dissolved 
on September 17, 1789, with the following order:
    That the Committee on Ways and Means be discharged from 
further proceeding on the business referred to them, and that 
it be referred to the Secretary of the Treasury to report 
thereon.
    It has also been suggested by one student that the 
committee was dissolved because Alexander Hamilton had become 
Secretary of the newly created Department of the Treasury, and 
thus it was presumed that the Treasury Department could provide 
the necessary machinery for developing information which would 
be needed. During the next 6 years there was no Ways and Means 
Committee or any other standing committee for the examination 
of estimates. Rather, ad hoc committees were appointed to draw 
up particular pieces of legislation on the basis of decisions 
made in the Committee of the Whole House. On November 13, 1794, 
a rule was adopted providing that:

          All proceedings touching appropriations of money 
        shall be first moved and discussed in a Committee on 
        the Whole House.

    In the next Congress historians have suggested that the 
House was determined tocurtail Secretary Hamilton's influence 
by first setting up a Committee on Ways and Means and requiring that 
committee to submit a report on appropriations and revenue measures 
before consideration in the Committee of the Whole House. It was also 
said that this Ways and Means Committee was put on a more or less 
standing basis since such a committee appeared at some point in every 
Congress until it was made a permanent committee.
    In the first session of the 7th Congress, Tuesday, December 
8, 1801, a resolution was adopted as follows:

          Resolved, That a standing Committee of Ways and Means 
        be appointed, whose duty it shall be to take into 
        consideration all such reports of the Treasury 
        Department, and all such propositions, relative to the 
        revenue as may be referred to them by the House; to 
        inquire into the state of the public debt, of the 
        revenue, and of the expenditures; and to report, from 
        time to time, their opinion thereon.

    The following Members were appointed: Messrs. Randolph 
(Virginia), Griswold (Connecticut), Smith (Vermont), Bayard 
(Delaware), Smilie (Pennsylvania), Read (Massachusetts), 
Nicholson (Maryland), Van Rensselaer (New York), Dickson 
(Tennessee).
    On Thursday, January 7, 1802, the House agreed to standing 
rules which, among other things, provided for standing 
committees, including the Committee on Ways and Means. The 
relevant part of the rules in this respect read as follows:
    A Committee of Ways and Means, to consist of seven members;

           *       *       *       *       *       *       *

    It shall be the duty of the said Committee of Ways and 
Means to take into consideration all such reports of the 
Treasury Department, and all such propositions relative to the 
revenue, as may be referred to them by the House; to inquire 
into the state of the public debt, of the revenue, and of the 
expenditures, and to report, from time to time, their opinion 
thereon; to examine into the state of the several public 
departments, and particularly into the laws making 
appropriations of moneys, and to report whether the moneys have 
been disbursed conformably with such laws; and also to report, 
from time to time, such provisions and arrangements, as may be 
necessary to add to the economy of the departments, and the 
accountability of their officers.
    It has been said that the jurisdiction of the committee was 
so broad in the early 19th century that one historian described 
it as follows:

          It seemed like an Atlas bearing upon its shoulders 
        all the business of the House.

    The jurisdiction of the committee remained essentially the 
same until 1865 when the control over appropriations was 
transferred to a newly created Committee on Appropriations and 
another part of its jurisdiction was given to a newly created 
Committee on Banking and Currency. This action followed rather 
extended discussion in the House, too lengthy to review here.
    During the course of that discussion, however, the 
following observations are of some historical interest. Mr. 
Cox, who was handling the motion to divide the committee, gave 
a very picturesque discussion of the many varied and heavy 
duties which had fallen on the committee over the years. He 
observed:

          And yet, sir, powerful as the committee is 
        constituted, even their powers of endurance, physical 
        and mental, are not adequate to the great duty which 
        has been imposed by the emergencies of this historic 
        time. It is an old adage, that ``whoso wanteth rest 
        will also want of might''; and even an Olympian would 
        faint and flag if the burden of Atlas is not relieved 
        by the broad shoulders of Hercules.

    He continued:

          I might give here a detailed statement of the amount 
        of business thrown upon that committee since the 
        commencement of the war. But I prefer to append it to 
        my remarks. Whereas before the war we scarcely expended 
        more than $70 million a year, now, during the five 
        sessions of the last two Congresses, there has been an 
        average appropriation of at least $800 million per 
        session. The statement which I hold in my hand shows 
        that during the first and extra session of the 37th 
        Congress there came appropriation bills from the 
        Committee on Ways and Means amounting to 
        $226,691,457.99. I say nothing now of the loan and 
        other fiscal bills emanating from that committee. * * * 
        During the present session I suppose it would be a fair 
        estimate to take the appropriations of the last session 
        of the 37th Congress, say $900 million.
          These are appropriation bills alone. They are 
        stupendous, and but poorly symbolize the immense labors 
        which the internal revenue, tariff, and loan bills 
        imposed on the committee. * * * And this business of 
        appropriations is perhaps not one-half of the labor of 
        the committee. There are various and important matters 
        upon which they act, but upon which they never report. 
        Their duties comprehend all the varied interests of the 
        United States; every element and branch of industry, 
        and every dollar or dime of value. They are connected 
        with taxation, tariffs, banking, loan bills, and ramify 
        to every fiber of the body-politic. All the springs of 
        wealth and labor are more or less influenced by the 
        action of this committee. Their responsibility is 
        immense, and their control almost imperial over the 
        necessities, comforts, homes, hopes, and destinies of 
        the people. All the values of the United States, which 
        in the census of 1860 (page 194) amount to nearly $17 
        billion, or, to be exact, $16,159,616,068, are affected 
        by the action of that committee, even before their 
        action is approved by the House. Those values fluctuate 
        whenever the head of the Ways and Means rises in his 
        place and proposes a measure. The price of every 
        article we use trembles when he proposes a gold bill or 
        a loan bill, or any bill to tax directly or indirectly. 
        * * * the interests connected with these economical 
        questions are of all questions those most momentous for 
        the future. Parties, statesmanship, union, stability, 
        all depend upon the manner in which these questions are 
        dealt with.

    Congressman Morrill (who was subsequently appointed 
chairman of the Ways and Means Committee in the succeeding 
Congress, and who still later became chairman of the Senate 
Finance Committee after he became a Senator) observed as 
follows:

          I am entirely indifferent as to the disposition which 
        shall be made of this subject by the House. So far as I 
        am myself concerned, I have never sought any position 
        upon any committee from the present or any other 
        Speaker of the House, and probably never shall. I have 
        no disposition to press myself hereafter for any 
        position. In relation to the proposed division of the 
        Committee on Ways and Means, the only doubt that I have 
        is the one expressed by my colleague on that committee, 
        Mr. Stevens, in regard to the separation of the 
        questions of revenue from those relating to 
        appropriations. In ordinary times of peace I should 
        deem it almost indispensable and entirely within their 
        power that this committee should have the control of 
        both subjects, in order that they might make both ends 
        meet, that is, to provide a sufficient revenue for the 
        expenditures. That reason applies now with greater 
        force; but it may be that the committee is overworked. 
        It is true that for the last 3 or 4 years the labors of 
        the Committee on Ways and Means have been incessant, 
        they have labored not only days but nights; not only 
        weekends but Sundays. If gentlemen suppose that the 
        committee have permitted some appropriations to be 
        reported which should not have been permitted they 
        little understand how much has been resisted.

    The influence the committee emanated came not only from the 
nature of its jurisdiction but also because for many years the 
chairman of the committee was also ad hoc majority floor leader 
of the House.
    When the revolt against Speaker Cannon took place, and the 
Speaker's powers to appoint the members of committees were 
curtailed, the Majority Members on the Committee on Ways and 
Means became the Committee on Committees. Subsequently, this 
power was disbursed to the respective party caucuses, beginning 
in the 94th Congress.
    Throughout its history, many famous Americans have served 
on the Committee on Ways and Means. The long and distinguished 
list includes 8 Presidents of the United States, 8 Vice 
Presidents, 4 Justices of the Supreme Court, 34 Cabinet 
members, and quite interestingly, 21 Speakers of the House of 
Representatives. This latter figure represents nearly one-half 
of the 47 Speakers who have served since 1789 through the end 
of the 104th Congress. See the alphabetical list which follows 
for names.

  Major positions held by former members of the Committee on Ways and 
                                 Means

President of the United States:
        George H. W. Bush, Texas
        Millard Fillmore, New York
        James A. Garfield, Ohio
        Andrew Jackson, Tennessee
        James Madison, Virginia
        William McKinley, Jr., Ohio
        James K. Polk, Tennessee
        John Tyler, Virginia
Vice President of the United States:
        John C. Breckinridge, Kentucky
        George H. W. Bush, Texas
        Charles Curtis, Kansas
        Millard Fillmore, New York
        John N. Garner, Texas
        Elbridge Gerry, Massachusetts
        Richard M. Johnson, Kentucky
        John Tyler, Virginia
Justice of the Supreme Court:
        Philip P. Barbour, Virginia
        Joseph McKenna, California
        John McKinley, Alabama
        Fred M. Vinson, Kentucky (Chief Justice)
Speaker of the House of Representatives:
        Nathaniel P. Banks, Massachusetts
        Philip P. Barbour, Virginia
        James G. Blaine, Maine
        John G. Carlisle, Kentucky
        Langdon Cheves, South Carolina
        James B. (Champ) Clark, Missouri
        Howell Cobb, Georgia
        Charles F. Crisp, Georgia
        John N. Garner, Texas
        John W. Jones, Virginia
        Michael C. Kerr, Indiana
        Nicholas Longworth, Ohio
        John W. McCormack, Massachusetts
        James K. Polk, Tennessee
        Henry T. Rainey, Illinois
        Samuel J. Randall, Pennsylvania
        Thomas B. Reed, Maine
        Theodore Sedgwick, Massachusetts
        Andrew Stevenson, Virginia
        John W. Taylor, New York
        Robert C. Winthrop, Massachusetts
Cabinet Member:
        Secretary of State:
                James G. Blaine, Maine
                William J. Bryan, Nebraska
                Cordell Hull, Tennessee 4
---------------------------------------------------------------------------
    \4\ Recipient of Nobel Peace Prize in 1945.
---------------------------------------------------------------------------
                Louis McLean, Delaware
                John Sherman, Ohio
        Secretary of the Treasury:
                George W. Campbell, Tennessee
                John G. Carlisle, Kentucky
                Howell Cobb, Georgia
                Thomas Corwin, Ohio
                Charles Foster, Ohio
                Albert Gallatin, Pennsylvania
                Samuel D. Ingham, Pennsylvania
                Louis McLean, Delaware
                Ogden L. Mills, New York
                John Sherman, Ohio
                Philip F. Thomas, Maryland
                Fred M. Vinson, Kentucky
        Attorney General:
                James P. McGranery, Pennsylvania
                Joseph McKenna, California
                A. Mitchell Palmer, Pennsylvania
                Caesar A. Rodney, Delaware
        Postmaster General:
                Samuel D. Hubbard, Connecticut
                Cave Johnson, Tennessee
                Horace Maynard, Tennessee
                William L. Wilson, West Virgina
        Secretary of the Navy:
                Thomas W. Gilder, Virginia
                Hilary A. Herbert, Alabama
                Victor H. Metcalf, California
                Claude A. Swanson, Virginia
        Secretary of the Interior:
                Rogers C. B. Morton, Maryland
                Jacob Thompson, Mississippi
        Secretary of Commerce and Labor:
                Victor H. Metcalf, California
        Secretary of Commerce:
                Rogers C. B. Morton, Maryland
        Secretary of Agriculture:
                Clinton P. Anderson, New Mexico

Appendix III. Statistical Review of the Activities of the Committee on 
                             Ways and Means

      A. Number of Bills and Resolutions Referred to the Committee

    As of the close of the 105th Congress on October 21, 1998, 
there had been referred to the Committee a total of 1,509 
bills, representing 25.2 percent of all the public bills 
introduced in the House of Representatives.
    The following table gives a more complete statistical 
review since 1967.

       TABLE 1.-- NUMBER OF BILLS AND RESOLUTIONS REFERRED TO THE COMMITTEE, 90TH THROUGH 105TH CONGRESSES
----------------------------------------------------------------------------------------------------------------
                                                                                    Referred to
                                                                   Introduced in   Committee on     Percentage
                                                                       House      Ways and Means
----------------------------------------------------------------------------------------------------------------
90th Congress...................................................          24,227           3,806            15.7
91st Congress...................................................          23,575           3,442            14.6
92d Congress....................................................          20,458           3,157            15.4
93d Congress....................................................          21,096           3,370            16.0
94th Congress...................................................          19,371           3,747            19.3
95th Congress...................................................          17,800           3,922            22.0
96th Congress...................................................          10,196           2,337            22.9
97th Congress...................................................           9,909           2,377            26.4
98th Congress...................................................           8,104           1,904            23.5
99th Congress...................................................           7,522           1,568            20.8
100th Congress..................................................           7,043           1,419            22.1
101st Congress..................................................           7,640           1,737            22.7
102d Congress...................................................           7,771           1,972            25.4
103d Congress...................................................           6,645           1,496            22.5
104th Congress..................................................           5,329           1,071            20.1
105th Congress..................................................           5,976           1,509            25.2
----------------------------------------------------------------------------------------------------------------

                           B. Public Hearings

    In the course of the 105th Congress, the full Committee on 
Ways and Means held public hearings on a total of 17 days, 
including 10 days in the first session and 7 days in the second 
session. Many of these hearings dealt with major subjects 
including the President's fiscal year 1998 and 1999 budgets, 
replacing the Federal income tax, and reducing the tax burden. 
The full Committee also focused on such issues as the solvency 
of the airport and airway trust fund; the education and 
training provisions, revenue raising provisions, and savings 
and investment provisions in the Administration's fiscal year 
1998 budget proposals; and Social Security reform.
    The following table specifies the statistical data on the 
number of days and witnesses published on each of the subjects 
covered by public hearings in the full Committee during the 
105th Congress.

  TABLE 2.--PUBLIC HEARINGS CONDUCTED BY THE FULL COMMITTEE ON WAYS AND
                                  MEANS
------------------------------------------------------------------------
                                                           Number of
                  Subject and date                   -------------------
                                                        Days   Witnesses
------------------------------------------------------------------------
1997:
    Solvency of the Airport and Airway Trust Fund,
     Feb. 5.........................................        1         2
    President's Fiscal Year 1998 Budget, Feb. 11, 12        2         2
    Education and Training Tax Provisions of the
     Administration's Fiscal Year 1998 Budget
     Proposal, Mar. 5...............................        1        14
    Revenue Raising Provisions in the
     Administration's Fiscal Year 1998 Budget
     Proposal, Mar. 12..............................        1        13
    Savings and Investment Provisions in the
     Administration's Fiscal Year 1998 Budget
     Proposals, Mar. 19.............................        1        27
    Impact on Individuals and Families of Replacing
     the Federal Income Tax, Apr. 15................        1         7
    Internal Revenue Service's 1995 Earned Income
     Tax Credit Compliance Study, May 8.............        1         3
    Recommendations of the National Commission on
     Restructuring the IRS on Executive Branch
     Governance and Congressional Oversight of the
     IRS, Sept. 16, 17..............................        2        22
                                                     -------------------
      Total for 1997................................       10        90
                                                     ===================
1998:
    Reducing the Tax Burden, Jan. 28, Feb. 4, 12....        3        37
    Revenue Provisions in President's Fiscal Year
     1999 Budget, Feb. 25...........................        1         1
    Use of an Expert Panel to Design Long-Range
     Social Security Reform, Apr. 1.................        1         9
    Managing the Public Debt in an Era of Surpluses,
     June 24........................................        1         5
    Saving Social Security, Nov. 19.................        1         6
                                                     -------------------
      Total for 1998................................        7        58
                                                     ===================
      Total for both sessions.......................       17       148
------------------------------------------------------------------------

    The five subcommittees of the Committee on Ways and Means 
were also very active in conducting public hearings during the 
105th Congress. The following table specifies in detail the 
number of days and witnesses published by each of the 
subcommittees.

     TABLE 3.--PUBLIC HEARINGS CONDUCTED BY THE SUBCOMMITTEES OF THE
                       COMMITTEE ON WAYS AND MEANS
------------------------------------------------------------------------
                                                           Number of
                  Subject and date                   -------------------
                                                        Days   Witnesses
------------------------------------------------------------------------
                SUBCOMMITTEE ON TRADE
1997:
    WTO Singapore Ministerial Meeting, Feb. 26......        1        17
    Budget Authorizations for Fiscal Years 1998 and
     1999 for the U.S. Customs Service, the U.S.
     International Trade Commission, and the Office
     of the Unites States Trade Representative, Mar.
     11.............................................        1         8
    Review U.S. Trade Policy Objectives and
     Initiatives, Mar. 18...........................        1        16
    Expanding U.S. Trade with Sub-Saharan Africa,
     Apr. 29........................................        1        20
    Oversight of the U.S. Customs Service, May 15...        1        11
    U.S.-China Trade Relations and Renewal of
     China's Most-Favored-Nation Status, June 17....        1        26
    Free Trade Area of the Americas, July 22........        1        16
    New Transatlantic Agenda, July 23...............        1         8
    President's Comprehensive Review of the NAFTA,
     Sept. 11.......................................        1        26
    Implementation of Fast Track Trade Authority,
     Sept. 30.......................................        1        17
    Use and Effect of Unilateral Trade Sanctions,
     Oct. 23........................................        1        14
    Future of Unites States-China Trade Relations
     and the Possible Accession of China to the
     World Trade Organization, Nov. 4...............        1        16
1998:
    U.S. Efforts to Reduce Barriers to Trade in
     Agriculture, Feb. 12...........................        1        11
    Asia Trade Issues, Feb. 24......................        1        11
    Free Trade Area of the Americas, Mar. 31........        1         9
    U.S. Customs Service Issues, Apr. 30............        1        12
    U.S. Economic and Trade Policy Toward Cuba, May
     7..............................................        1        20
    U.S.-China Trade Relations and Renewal of
     China's Most-Favored-Nation Status, June 17....        1        18
    U.S.-Vietnam Trade Relations, June 18...........        1        20
    United States-Japan Trade Relations, July 15....        1        11
    Trade Relations with Europe and the New
     Transatlantic Economic Partnership, July 28....        1        11
                                                     -------------------
      Total.........................................       21       318
                                                     ===================
              SUBCOMMITTEE ON OVERSIGHT
1997:
    Annual Report of the Internal Revenue Service
     Taxpayer Advocate, Feb. 25.....................        1         6
    ``High-Risk'' Programs Within the Jurisdiction
     of the Committee on Ways and Means, Mar. 4.....        1         7
    IRS Budget for Fiscal Year 1998 and the 1997 Tax
     Return Filing Season, Mar. 18..................        1         5
    Electronic Federal Tax Payment System, Apr. 16..        1        14
    Low-Income Housing Tax Credit, Apr. 23, May 1...        2        19
    Report of the National Commission on
     Restructuring the Internal Revenue Service,
     July 24........................................        1         9
    Recommendations of the National Commission on
     Restructuring the IRS to Expand Electronic
     Filing of Tax Returns, Sept. 9.................        1         9
    Recommendations of the National Commission on
     Restructuring the Internal Revenue Service on
     Taxpayer Protections and Rights, Sept. 26......        1        13
    Performance of the Empowerment Zone/Enterprise
     Community Program, Oct. 28.....................        1        15
1998:
    Annual Report of the Internal Revenue Service
     Taxpayer Advocate, Feb. 3......................        1         7
    Treasury Department Report on Innocent Spouse
     Relief, Feb. 24................................        1         2
    Oversight of Pension Issues, Mar. 10............        1         8
    1998 Tax Return Filing Season and the IRS Budget
     for Fiscal Year 1999, Mar. 31..................        1         4
    Oversight of Tax Law Related to Health
     Insurance, Apr. 23.............................        1         6
    Oversight of Pension Issues, May 5..............        1        15
    Year 2000 Computer Problem, May 7...............        1        14
    Year 2000 Problem and Telecommunication Systems,
     June 16........................................        1         8
    Impact of Complexity in the Tax Code on
     Individual Taxpayers and Small Businesses, June
     23.............................................        1         6
    Funding Mechanisms of the ``E-Rate'' Program,
     Aug. 4.........................................        1         5
                                                     -------------------
      Total.........................................       20       172
                                                     ===================
               SUBCOMMITTEE ON HEALTH
1997:
    Medicare Provisions in the President's Budget,
     Feb 13.........................................        1         4
    Medicare HMO Payment Policies, Feb. 25..........        1         8
    Medicare Home Health Care, Skilled Nursing
     Facility, and Other Post-Acute Care Payment
     Policies, Mar. 4...............................        1         6
    Medicare HMO Regulation and Quality, Mar. 6.....        1         8
    Teaching Hospitals and Medicare Disproportionate
     Share Hospital Payments, Mar. 11...............        1         7
    H.R. 15, the ``Medicare Preventive Benefit
     Improvement Act of 1997,'' Mar. 13.............        1        13
    Recommendations Regarding Medicare Hospital and
     Physician Payment Policies, Mar. 20............        1         9
    Children's Access to Health Coverage, Apr. 8....        1         6
    Rehabilitation and Long-Term Care Hospitals
     Payments, Apr. 10..............................        1         7
    Issues Relating to Medicare's Coverage Policy,
     Apr. 17........................................        1         7
    Medicare Provider-Sponsored Organizations, Apr.
     24.............................................        1         6
    Coordinated Care Options for Seniors, Apr. 29...        1         6
    Inspector General Audit of Health Care Financing
     Administration Financial Statements, July 17...        1         2
    Implementation of the Health Insurance
     Portability and Accountability Act, Sept. 25...        1         9
    Health Care Waste, Fraud, and Abuse, Oct. 9.....        1         5
1998:
    Preparing the Health Care Financing
     Administration for the 21st Century, Jan. 29...        1         5
    Assessing Health Care Quality, Feb. 26..........        1         9
    Reports Regarding Medicare Payment Policies,
     Mar. 3.........................................        1         6
    Patient Confidentiality, Mar. 24................        1         6
    Patient Appeals in Health Care, Apr. 23.........        1         6
    Administration's Plan to Delay Implementation of
     the Balanced Budget Act of 1997, July 16.......        1         9
    Payment Systems for Medicare's Home Health
     Benefit, Aug. 6................................        1         9
                                                     -------------------
      Total.........................................       22       153
                                                     ===================
           SUBCOMMITTEE ON SOCIAL SECURITY
1997:
    ``The Future of Social Security for this
     Generation and the Next'': 1994-1996 Advisory
     Council on Social Security, Mar. 6.............        1         3
    Establishing a Framework for Evaluating Options
     for Social Security Reform, Apr. 10............        1         6
    Oversight of the Disability Appeals Process,
     Apr. 24........................................        1         7
    Social Security Administration's Website, May 6.        1         7
    ``The Future of Social Security for this
     Generation and the Next'': Findings of the 1997
     Annual Report of the Board of Trustees and
     Different Generational Perspectives on Social
     Security Reform, May 22........................        1         7
    ``The Future of Social Security for this
     Generation and the Next'': Social Security
     Policy Experts, June 24........................        1         6
    ``The Future of Social Security for this
     Generation and the Next'': Members of Congress
     and Business and Labor Groups, July 10.........        1        23
    Barriers Preventing Social Security Disability
     Recipients from Return to Work, July 23, 24....        2        21
    ``The Future of Social Security for this
     Generation and the Next'': Experiences of Other
     Countries, Sept. 18............................        1         7
    Social Security Administration's Continuing
     Disability Review Process, Sept. 25............        1         2
    ``The Future of Social Security for this
     Generation and the Next'': Current State of
     Public Opinion on the Future of Social
     Security, Oct. 23..............................        1         5
1998:
    ``The Future of Social Security for this
     Generation and the Next'': Examining the
     Implications of Raising the Retirement Age,
     Feb. 26........................................        1         8
    Review the Challenges Facing the New
     Commissioner of Social Security (held jointly
     with Subcommittee on Human Resources), Mar. 12.        1         4
    ``Ticket to Work and Self-Sufficiency Act of
     1998,'' Mar. 17................................        1        11
    ``The Future of Social Security for this
     Generation and the Next'': Examining the
     Implications of Proposals Affecting Federal,
     State, and Local Government Employees, May 21..        1        12
    ``The Future of Social Security for this
     Generation and the Next'': Examining Proposals
     Regarding Personal Accounts, June 3............        1         6
    ``The Future of Social Security for this
     Generation and the Next'': Examining the
     Structure of Personal Savings Accounts Within
     the Social Security System Structure and the
     Effects Individual-Owned Investments Would have
     for Retirees, June 18..........................        1         9
    Labor-Management Relations at the Social
     Security Administration, July 22, 23, 24.......        3         7
                                                     -------------------
      Total.........................................       21       151
                                                     ===================
           SUBCOMMITTEE ON HUMAN RESOURCES
1997:
    President's Fiscal Year 1998 Budget, Feb. 13....        1         7
    Technical Corrections to Welfare Reform
     Legislation, Feb. 26...........................        1         6
    Encouraging Adoption, Feb. 27...................        1         9
    Administration's Child Support Enforcement
     Incentive Payment Proposal, Mar. 20............        1         6
    H.R. 867, the ``Adoption Promotion Act of
     1997,'' Apr. 8.................................        1        10
    Unemployment Insurance Issues, Apr. 24..........        1        18
    Child Support System Improvement, Sept. 10......        1        10
    Protecting Children From the Impact of Substance
     Abuse on Families Receiving Welfare, Oct. 28...        1        10
1998:
    Modifying Child Support Penalties for Automatic
     Data Processing, Jan. 29.......................        1        10
    Review the Challenges Facing the New
     Commissioner of Social Security (held jointly
     with Subcommittee on Social Security), Mar. 12.        1         4
    Oversight of Welfare Reform, Mar. 19............        1         9
    Supplemental Security Income Fraud and Abuse,
     Apr. 21........................................        1         5
    Child Support Enforcement, May 19...............        1        10
    Adoption Reunion Registries and Screen of Adults
     Working with Children, June 11.................        1        12
    Welfare Reform and Child Support Enforcement,
     June 12........................................        1         8
    H.R. 3684, the ``Employment Security Financing
     Act of 1998,'' June 23.........................        1         8
    Fatherhood and Welfare Reform, July 30..........        1         9
    Welfare Reform and Child Support Impacts, Aug.
     24.............................................        1        13
    Implementation of the Interethnic Adoption
     Amendment, Sept. 15............................        1        10
    Child Protection, Dec. 14.......................        1        12
                                                     -------------------
      Total.........................................       19       170
------------------------------------------------------------------------

    As the foregoing statistics indicate, during the 105th 
Congress the full Committee and its five subcommittees held 
public hearings aggregating a grand total of 120 days, during 
which time 1,124 witnesses testified. There were three field 
hearings held by the Human Resources Subcommittee in Phoenix, 
Arizona; Carson City, Nevada; and Ft. Lauderdale, Florida.
    In addition, written comments were printed after having 
been requested and received by the Subcommittee on Trade on the 
extension of unconditional most-favored-nation treatment to 
Mongolia and Laos; miscellaneous corrections to trade 
legislation and miscellaneous duty suspension bills; two 
requests for additional miscellaneous trade and tariff 
legislation; H.R. 4526, a bill which would change Customs 
rules-of-origin for certain textile products; and extension of 
normal trade relations to the Kyrgyz Republic; and by the 
Subcommittee on Oversight on taxpayer rights proposals.

                           C. Markup Sessions

    With respect to markup or business sessions during the 
105th Congress, the full Committee and its five subcommittees 
were also very actively engaged. The full Committee held such 
sessions on 24 working days, usually both morning and afternoon 
sessions, and the subcommittees an aggregate of 19 working 
days, making a grand total of 43 working days of markup or 
business sessions for the full Committee and its subcommittees 
during the 105th Congress.

D. Number and Final Status of Bills Reported From the Committee on Ways 
                    and Means in the 105th Congress

    During the 105th Congress, the Committee reported to the 
House a total of 39 bills, 36 favorably and 3 adversely. Forty-
eight bills containing provisions within the purview of the 
Committee were passed by the House and 21 were enacted into 
law. It should be noted that this total is not at all 
indicative of the total number of bills considered by the 
Committee, because when the Committee goes into session on 
major tax, tariff, Social Security, health, unemployment 
compensation, or human resources matters, it very often 
considers the broad subject rather than certain specific bills, 
and in the course of consideration of the subject makes every 
attempt to review all of the pertinent bills pending before the 
Committee which are encompassed within that subject. Further, 
it is the practice of the Committee normally to report bills on 
a major subject which may involve many sections containing 
subjects included in perhaps as many as several hundred bills 
pending before the Committee.

Appendix IV. Chairmen of the Committee on Ways and Means and Membership 
       of the Committee From the 1st Through the 105th Congresses

    A. Chairmen of the Committee on Ways and Means, 1789 to Present

----------------------------------------------------------------------------------------------------------------
                 Name                           State                    Party               Term of service
----------------------------------------------------------------------------------------------------------------
Thomas Fitzsimons....................  Pennsylvania...........  Federalist.............  1789.
William L. Smith.....................  South Carolina.........  ......do...............  1794 to 1797.
Robert G. Harper.....................  South Carolina.........  ......do...............  1797 to 1800.
Roger Griswold.......................  Connecticut............  ......do...............  1800 to 1801.
John Randolph........................  Virginia...............  Jeffersonian Republican  1801 to 1805, 1827.
Joseph Clay..........................  Pennsylvania...........  ......do...............  1805 to 1807.
George W. Campbell...................  Tennessee..............  ......do...............  1807 to 1809.
John W. Eppes........................  Virginia...............  ......do...............  1809 to 1811.
Ezekiel Bacon........................  Massachusetts..........  ......do...............  1811 to 1812.
Langdon Cheves.......................  South Carolina.........  ......do...............  1812 to 1813.
John W. Eppes........................  Virginia...............  ......do...............  1813 to 1815.
William Lowndes......................  South Carolina.........  ......do...............  1815 to 1818.
Samuel Smith.........................  Maryland...............  ......do...............  1818 to 1822.
Louis McLane.........................  Delaware...............  ......do...............  1822 to 1827.
George McDuffie......................  South Carolina.........  Democrat...............  1827 to 1832.
Gulian C. Verplanck..................  New York...............  ......do...............  1832 to 1833.
James K. Polk........................  Tennessee..............  ......do...............  1833 to 1835.
C. C. Cambreleng.....................  New York...............  ......do...............  1835 to 1839.
John W. Jones........................  Virginia...............  ......do...............  1839 to 1841.
Millard Fillmore.....................  New York...............  Whig...................  1841 to 1843.
James Iver McKay.....................  North Carolina.........  Democrat...............  1843 to 1847.
Samuel F. Vinton.....................  Ohio...................  Whig...................  1847 to 1849.
Thomas H. Bayly......................  Virginia...............  Democrat...............  1849 to 1851.
George S. Houston....................  Alabama................  ......do...............  1851 to 1855.
Lewis D. Campbell....................  Ohio...................  Republican.............  1855 to 1857.
J. Glancy Jones......................  Pennsylvania...........  Democrat...............  1857 to 1858.
John S. Phelps.......................  Missouri...............  ......do...............  1858 to 1859.
John Sherman.........................  Ohio...................  Republican.............  1859 to 1861.
Thaddeus Stevens.....................  Pennsylvania...........  ......do...............  1861 to 1865.
Justin S. Morrill....................  Vermont................  Republican.............  1865 to 1867.
Robert C. Schenck....................  Ohio...................  ......do...............  1867 to 1871.
Samuel D. Hooper.....................  Massachusetts..........  ......do...............  1871.
Henry L. Dawes.......................  Massachusetts..........  ......do...............  1871 to 1875.
William R. Morrison..................  Illinois...............  Democrat...............  1875 to 1877.
Fernando Wood........................  New York...............  ......do...............  1877 to 1881.
John R. Tucker.......................  Virginia...............  ......do...............  1871.
William D. Kelley....................  Pennsylvania...........  Republican.............  1881 to 1883.
William R. Morrison..................  Illinois...............  Democrat...............  1883 to 1887.
Roger Q. Mills.......................  Texas..................  ......do...............  1887 to 1889.
William McKinley, Jr.................  Ohio...................  Republican.............  1889 to 1891.
William M. Springer..................  Illinois...............  Democrat...............  1891 to 1893.
William L. Wilson....................  West Virginia..........  ......do...............  1893 to 1895.
Nelson Dingley, Jr...................  Maine..................  Republican.............  1895 to 1899.
Sereno E. Payne......................  New York...............  ......do...............  1899 to 1911.
Oscar W. Underwood...................  Alabama................  Democrat...............  1911 to 1915.
Claude Kitchin.......................  North Carolina.........  ......do...............  1915 to 1919.
Joseph W. Fordney....................  Michigan...............  Republican.............  1919 to 1923.
William R. Green.....................  Iowa...................  ......do...............  1923 to 1928.
Willis C. Hawley.....................  Oregon.................  ......do...............  1929 to 1931.
James W. Collier.....................  Mississippi............  Democrat...............  1931 to 1933.
Robert L. Doughton...................  North Carolina.........  ......do...............  1933 to 1947, 1949 to
                                                                                          1953.
Harold Knutson.......................  Minnesota..............  Republican.............  1947 to 1949.
Daniel A. Reed.......................  New York...............  Republican.............  1953 to 1955.
Jere Cooper..........................  Tennessee..............  Democrat...............  1955 to 1957.
Wilbur D. Mills......................  Arkansas...............  ......do...............  1957 to 1975.
Al Ullman............................  Oregon.................  ......do...............  1975 to 1981.
Dan Rostenkowski.....................  Illinois...............  ......do...............  1981 to 1994.
Bill Archer..........................  Texas..................  Republican.............  1995.
----------------------------------------------------------------------------------------------------------------

           B. Tables Showing Past Membership of the Committee

1. members of the committee on ways and means from the 1st through the 
                        105th congress, by state

                                                            Congress(es)
Alabama:
    John McKinley.......................................              23
    David Hubbard.......................................              26
    Dixon H. Lewis......................................           27-28
    George S. Houston...................................    29-30, 32-33
    James F. Dowdell....................................              35
    Hilary A. Herbert...................................              48
    Joseph Wheeler......................................           53-55
    Oscar W. Underwood..................................       56, 59-63
    Ronnie G. Flippo....................................          98-101
Arizona:
    J.D. Hayworth.......................................            105-
Arkansas:
    James K. Jones......................................              48
    Clifton R. Breckinridge.............................       49-51, 53
    William A. Oldfield.................................           64-70
    Heartsill Ragon.....................................           70-73
    William J. Driver...................................              72
    Claude A. Fuller....................................           73-75
    Wilbur D. Mills.....................................           77-94
    Jim Guy Tucker, Jr..................................              95
    Beryl Anthony, Jr...................................          97-102
California:
    Joseph McKenna......................................           51-52
    Victor H. Metcalf...................................           57-58
    James C. Needham....................................           58-62
    William E. Evans....................................              73
    Frank H. Buck.......................................           74-77
    Bertrand W. Gearhart................................           76-80
    Cecil R. King.......................................    78-79, 81-90
    James B. Utt........................................       83, 86-91
    James C. Corman.....................................           90-96
    Jerry L. Pettis.....................................           91-94
    William M. Ketchum..................................           94-95
    Fortney Pete Stark..................................             94-
    John H. Rousselot...................................           95-97
    Robert T. Matsui....................................             97-
    William M. Thomas...................................             98-
    Wally Herger........................................            103-
    Xavier Becerra......................................            105-
Colorado:
    Robert W. Bonynge...................................              60
    Charles B. Timberlake...............................           66-72
    John A. Carroll.....................................              81
    Donald G. Brotzman..................................           92-93
    George H. ``Hank'' Brown............................         100-101
Connecticut:
    Jeremiah Wadsworth..................................               1
    Uriah Tracy.........................................               3
    James Hillhouse.....................................               4
    Nathaniel Smith.....................................             4-5
    Joshua Coit.........................................               5
    Roger Griswold......................................             5-8
    John Davenport......................................               8
    Jonathan O. Moseley.................................       9, 14, 16
    Benjamin Tallmadge..................................           10-11
    Timothy Pitkin......................................       12-13, 15
    Ralph I. Ingersoll..................................           21-22
    Samuel D. Hubbard...................................              30
    James Phelps........................................           45-46
    Charles A. Russell..................................           54-57
    Ebenezer J. Hill....................................    58-62, 64-65
    John Q. Tilson......................................           66-68
    Antoni N. Sadlak....................................           83-85
    William R. Cotter...................................           94-97
    Barbara B. Kennelly.................................          98-105
    Nancy L. Johnson....................................            101-
Delaware:
    John Vining.........................................               1
    Henry Latimer.......................................               3
    John Patten.........................................               4
    James A. Bayard, Sr.................................            5, 7
    Caesar A. Rodney....................................               8
    Louis McLane........................................           16-19
Florida:
    A. S. Herlong, Jr...................................           84-90
    Sam M. Gibbons......................................          91-104
    L. A. (Skip) Bafalis................................           94-97
    E. Clay Shaw, Jr....................................            100-
    Karen L. Thurman....................................            105-
Georgia:
    James Jackson.......................................               1
    Abraham Baldwin.....................................             3-5
    Benjamin Taliaferro.................................               6
    John Milledge.......................................               7
    David Meriwether....................................             8-9
    William W. Bibb.....................................           12-13
    Joel Abbott.........................................              15
    Joel Crawford.......................................           15-16
    Wiley Thompson......................................           17-18
    George R. Gilmer....................................              20
    Richard H. Wilde....................................           22-23
    George W. Owens.....................................           24-25
    Charles E. Haynes...................................              25
    Mark A. Cooper......................................              26
    Absalom H. Chappell.................................              28
    Seaborn Jones.......................................              29
    Robert Toombs.......................................           30-31
    Alexander H. Stephens...............................       30-31, 33
    Marshall J. Wellborn................................              31
    Howell Cobb.........................................              34
    Martin J. Crawford..................................           35-36
    Benjamin H. Hill....................................              44
    Henry R. Harris.....................................          45, 49
    William H. Felton...................................              46
    Emory Speer.........................................              47
    James H. Blount.....................................              48
    Henry G. Turner.....................................           50-54
    Charles F. Crisp....................................              54
    James M. Griggs.....................................           60-61
    William G. Brantley.................................           61-62
    Charles R. Crisp....................................           64-72
    Albert S. Camp......................................           78-83
    Phillip M. Landrum..................................           89-94
    Ed Jenkins..........................................          95-102
    Wyche Fowler, Jr....................................           96-99
    John Lewis..........................................            103-
    Mac Collins.........................................            104-
Hawaii:
    Cecil (Cec) Heftel..................................           96-99
Illinois:
    Daniel P. Cook......................................              19
    John A. McClernand..................................              37
    John Wentworth......................................              39
    John A. Logan.......................................              40
    Samuel S. Marshall..................................              41
    Horatio C. Burchard.................................           42-45
    William R. Morrison.................................       44, 46-49
    William M. Springer.................................              52
    Albert J. Hopkins...................................           52-57
    Henry S. Boutell....................................           58-61
    Henry T. Rainey.....................................    62-66, 68-72
    John A. Sterling....................................              65
    Ira C. Copley.......................................           66-67
    Carl R. Chindblom...................................           68-72
    Chester C. Thompson.................................           74-75
    Raymond S. McKeough.................................           76-77
    Charles S. Dewey....................................              78
    Thomas J. O'Brien...................................       79, 81-88
    Noah M. Mason.......................................           80-87
    Harold R. Collier...................................           88-93
    Dan Rostenkowski....................................          88-103
    Abner J. Mikva......................................           94-96
    Philip M. Crane.....................................             94-
    Marty Russo.........................................          96-102
    Mel Reynolds........................................             103
    Jerry Weller........................................            105-
Indiana:
    David Wallace.......................................              27
    Cyrus L. Dunham.....................................              32
    William E. Niblack..................................          40, 43
    Godlove S. Orth.....................................              41
    Michael C. Kerr.....................................              42
    Thomas M. Browne....................................           48-50
    William D. Bynum....................................          50, 53
    Benjamin F. Shively.................................              52
    George W. Steele....................................           54-57
    James E. Watson.....................................           58-60
    Edgar D. Crumpacker.................................           60-61
    Lincoln Dixon.......................................           62-65
    Harry C. Canfield...................................           71-72
    John W. Boehne, Jr..................................           73-77
    Robert A. Grant.....................................              80
    Andy Jacobs, Jr.....................................          94-104
Iowa:
    John A. Kasson......................................   38, 43, 47-48
    William B. Allison..................................           39-41
    John H. Gear........................................          51, 53
    Jonathan P. Dolliver................................           54-56
    William R. Green....................................           63-70
    C. William Ramseyer.................................           70-71
    Otha D. Wearin......................................              75
    Lloyd Thurston......................................              75
    Thomas E. Martin....................................           80-83
    Fred Grandy.........................................         102-103
    Jim Nussle..........................................            104-
Kansas:
    Dudley C. Haskell...................................              47
    Chester I. Long.....................................           56-57
    Charles Curtis......................................           58-59
    William A. Calderhead...............................           60-61
    Victor Murdock......................................              63
    Guy T. Helvering....................................           64-65
    Frank Carlson.......................................           76-79
    Martha E. Keys......................................           94-95
Kentucky:
    Alexander D. Orr....................................               3
    Christopher Greenup.................................               4
    Thomas T. Davis.....................................               5
    John Boyle..........................................               8
    Richard M. Johnson..................................           11-12
    Thomas Montgomery...................................              13
    David Trimble.......................................           15-16
    Nathan Gaither......................................              22
    John Pope...........................................              25
    Thomas F. Marshall..................................              27
    Garrett Davis.......................................              28
    Charles S. Morehead.................................           30-31
    John C. Breckinridge................................              33
    Robert Mallory......................................              38
    James B. Beck.......................................           42-43
    Henry Watterson.....................................              44
    John G. Carlisle....................................       46-47, 51
    Joseph C.S. Blackburn...............................              48
    William C.P. Breckinridge...........................           49-50
    Alexander B. Montgomery.............................           52-53
    Walter Evans........................................           54-55
    Ollie M. James......................................              62
    Augustus O. Stanley.................................              63
    Frederick M. Vinson.................................           72-75
    Noble J. Gregory....................................           78-85
    John C. Watts.......................................           86-92
    Jim Bunning.........................................         102-105
Louisiana:
    Thomas B. Robertson.................................              14
    William L. Brent....................................           19-20
    Walter H. Overton...................................              21
    Lionel A. Sheldon...................................              43
    Randall L. Gibson...................................           45-46
    Charles J. Boatner..................................              54
    Samuel M. Robertson.................................           55-59
    Robert F. Broussard.................................              61
    Whitmell P. Martin..................................           65-70
    Paul H. Maloney.....................................       76, 78-79
    Thomas Hale Boggs, Sr...............................           81-91
    Joe D. Waggonner, Jr................................           92-95
    W. Henson Moore III.................................           96-99
    William J. Jefferson................................       103, 105-
    Jim McCrery.........................................            103-
    Jimmy Hayes.........................................         \5\ 104
5 Appointed January 25, 1996.
    William J. Jefferson................................            105-
Maine:
    Peleg Sprague.......................................           19-20
    Francis O.J. Smith..................................              24
    George Evans........................................              26
    Israel Washburn, Jr.................................              36
    James G. Blaine.....................................              44
    William P. Frye.....................................              46
    Thomas B. Reed......................................    48-50, 52-53
    Nelson Dingley, Jr..................................       51, 54-55
    Daniel J. McGillicuddy..............................              64
Maryland:
    William Smith.......................................               1
    Gabriel Christie....................................               3
    William Vans Murray.................................               4
    William Hindman.....................................             4-5
    William Craik.......................................               5
    Joseph H. Nicholson.................................             6-9
    Nicholas R. Moore...................................               8
    Roger Nelson........................................               9
    John Montgomery.....................................           10-11
    Alexander McKim.....................................              13
    Stevenson Archer....................................              13
    Samuel Smith........................................           14-17
    Isaac McKim.........................................       18, 23-25
    Henry W. Davis......................................           34-36
    Phillip F. Thomas...................................              44
    David J. Lewis......................................           72-75
    Rogers C.B. Morton..................................           91-92
    Benjamin L. Cardin..................................            101-
Massachusetts:
    Elbridge Gerry......................................               1
    Fisher Ames.........................................               3
    Theodore Sedgwick...................................               4
    Theophilus Bradbury.................................               4
    Harrison Gray Otis..................................             5-6
    Samuel Sewall.......................................               5
    Isaac Parker........................................               5
    Bailey Bartlett.....................................               6
    Nathan Read.........................................               7
    Seth Hastings.......................................               8
    Josiah Quincy.......................................               9
    Ezekiel Bacon.......................................           11-12
    Ebenezer Seaver.....................................              11
    Henry Shaw..........................................              16
    Henry W. Dwight.....................................           19-21
    Benjamin Gorham.....................................              23
    Abbott Lawrence.....................................          24, 26
    Richard Fletcher....................................              25
    George N. Briggs....................................              25
    Leverett Saltonstall................................              26
    Robert C. Winthrop..................................              29
    Charles Hudson......................................              30
    George Ashmun.......................................              31
    William Appleton....................................       32-33, 37
    Alexander De Witt...................................              34
    Nathaniel P. Banks..................................          35, 45
    Samuel Hooper.......................................           37-41
    Henry L. Dawes......................................           42-43
    Chester W. Chapin...................................              44
    William A. Russell..................................           47-48
    Moses T. Stevens....................................           52-53
    Samuel W. McCall....................................           56-62
    Andrew J. Peters....................................           62-63
    Augustus P. Gardner.................................           63-65
    John J. Mitchell....................................              63
    Allen T. Treadway...................................           65-78
    Peter F. Tague......................................           67-68
    John W. McCormack...................................           72-76
    Arthur D. Healey....................................              77
    Charles L. Gifford..................................           79-80
    Angier L. Goodwin...................................       80, 82-83
    James A. Burke......................................           87-95
    James M. Shannon....................................           96-98
    Brian J. Donnelly...................................          99-102
    Richard E. Neal.....................................            103-
Michigan:
    William A. Howard...................................           34-36
    Austin Blair........................................              41
    Henry Waldron.......................................              43
    Omar D. Conger......................................              46
    Jay A. Hubbell......................................              47
    William C. Maybury..................................              49
    Julius C. Burrows...................................           50-53
    Justin R. Whiting...................................           52-53
    William A. Smith....................................              59
    Joseph W. Fordney...................................           60-67
    James C. McLaughlin.................................           68-72
    Roy O. Woodruff.....................................           73-82
    John D. Dingell.....................................           74-84
    Victor A. Knox......................................       83, 86-88
    Thaddeus M. Machrowicz..............................           84-87
    Martha W. Griffiths.................................           87-93
    Charles E. Chamberlain..............................           91-93
    Richard F. Vander Veen..............................           93-94
    Guy Vander Jagt.....................................          94-102
    William M. Brodhead.................................           95-97
    Sander M. Levin.....................................            100-
    Dave Camp...........................................            103-
Minnesota:
    Mark H. Dunnell.....................................           46-47
    James A. Tawney.....................................           54-58
    James T. McCleary...................................              59
    Winfield S. Hammond.................................           62-63
    Sydney Anderson.....................................              63
    Harold Knutson......................................           73-80
    Eugene J. McCarthy..................................           84-85
    Joseph E. Karth.....................................           92-94
    Bill Frenzel........................................          94-101
    Jim Ramstad.........................................            104-
Mississippi:
    Jacob Thompson......................................              31
    John Sharp Williams.................................           58-59
    James W. Collier....................................           63-72
    Aaron Lane Ford.....................................              77
Missouri:
    James S. Green......................................              31
    John S. Phelps......................................           32-37
    Henry T. Blow.......................................              38
    John Hogan..........................................              39
    Gustavus A. Finkelburg..............................              42
    John C. Tarsney.....................................           53-54
    Seth W. Cobb........................................              54
    Champ Clark.........................................           58-61
    Dorsey W. Shackleford...............................           62-63
    Clement C. Dickinson................................   63-66, 68-70,
      ..................................................           72-73
    Charles L. Faust....................................           69-70
    Richard M. Duncan...................................           74-77
    Thomas B. Curtis....................................           83-90
    Frank M. Karsten....................................           84-90
    Richard A. Gephardt.................................          95-101
    Mel Hancock.........................................         103-104
    Kenny Hulshof.......................................            105-
Montana:
    Lee W. Metcalf......................................              86
    James F. Battin.....................................           89-91
Nebraska:
    William J. Bryan....................................           52-53
    Charles H. Sloan....................................           63-65
    Ashton C. Shallenberger.............................              73
    Carl T. Curtis......................................           79-83
    Hal Daub............................................          99-100
    Peter Hoagland......................................             103
    Jon Christensen.....................................         104-105
Nevada:
    Francis G. Newlands.................................           56-57
    John Ensign.........................................         104-105
New Hampshire:
    Samuel Livermore....................................               1
    Nicholas Gilman.....................................             3-4
    Abiel Foster........................................               5
    Nathaniel A. Haven..................................              11
    Henry Hubbard.......................................              23
    Charles G. Atherton.................................           25-27
    Moses Norris, Jr....................................           28-29
    Harry Hibbard.......................................           31-33
    Judd A. Gregg.......................................          99-100
New Jersey:
    Lambert Cadwalader..................................               1
    Elias Boudinot......................................               3
    Isaac Smith.........................................               4
    Thomas Sinnickson...................................               5
    James H. Imlay......................................               6
    William Coxe, Jr....................................              13
    John L. N. Stratton.................................              37
    William Hughes......................................              62
    Isaac Bacharach.....................................           66-74
    Donald H. McLean....................................           76-78
    Robert W. Kean......................................           78-85
    Henry Helstoski.....................................              94
    Frank J. Guarini....................................          96-102
    Dick Zimmer.........................................             104
New Mexico:
    Clinton P. Anderson.................................              79
New York:
    John Laurance.......................................               1
    John Watts..........................................               3
    Ezekiel Gilbert.....................................               4
    James Cochran.......................................               5
    Hezekiah L. Hosmer..................................               5
    Jonas Platt.........................................               6
    Killian K. Van Rensselaer...........................               7
    Joshua Sands........................................               8
    Erastus Root........................................              11
    John W. Taylor......................................              13
    Jonathan Fisk.......................................              13
    Thomas J. Oakley....................................              13
    James W. Wilkin.....................................              14
    James Tallmadge, Jr.................................              15
    Albert H. Tracy.....................................              16
    Nathaniel Pitcher...................................              17
    Churchill C. Cambreleng.............................    17-18, 23-25
    Dudley Marvin.......................................              19
    Gulian C. Verplanck.................................           20-22
    Aaron Vanderpoel....................................              26
    Millard Filmore.....................................              27
    Daniel D. Barnard...................................              28
    David L. Seymour....................................              28
    George O. Rathbun...................................              28
    Orville Hungerford..................................              29
    Henry Nicoll........................................              30
    James Brooks........................................31-32, 39-40, 42
    William Duer........................................              31
    Solomon G. Haven....................................              33
    Russell Sage........................................              34
    John Kelly..........................................              35
    William B. MacLay...................................              35
    Elbridge G. Spaulding...............................           36-37
    Erastus Corning.....................................              37
    Reuben E. Fenton....................................              38
    De Witt C. Littlejohn...............................              38
    Henry G. Stebbins...................................              38
    John V. L. Pruyn....................................              38
    Roscoe Conkling.....................................              39
    Charles H. Winfield.................................              39
    John A. Griswold....................................              40
    Dennis McCarthy.....................................              41
    Ellis H. Roberts....................................           42-43
    Fernando Wood.......................................           43-46
    Abram S. Hewitt.....................................           48-49
    Frank Hiscock.......................................           48-49
    Sereno E. Payne.....................................           51-63
    Roswell P. Flower...................................              51
    William B. Cochran..................................    52-53, 58-60
    George B. McClellan.................................           55-58
    John W. Dwight......................................              61
    Francis B. Harrison.................................           61-63
    Michael F. Conry....................................              64
    George W. Fairchild.................................           64-65
    John F. Carew.......................................           65-71
    Luther W. Mott......................................           66-67
    Alanson B. Houghton.................................              67
    Ogden L. Mills......................................           67-69
    Frank Crowther......................................           68-77
    Thaddeus C. Sweet...................................              70
    Frederick M. Davenport..............................           70-71
    Thomas H. Cullen....................................           71-78
    Christopher D. Sullivan.............................           72-76
    Daniel A. Reed......................................           73-86
    Walter A. Lynch.....................................           78-81
    Eugene J. Keogh.....................................           82-89
    Albert H. Bosch.....................................              86
    Steven B. Derounian.................................           87-88
    Barber B. Conable, Jr...............................           90-98
    Jacob H. Gilbert....................................           90-91
    Hugh L. Carey.......................................           91-93
    Otis G. Pike........................................           93-95
    Charles B. Rangel...................................             94-
    Thomas J. Downey....................................          96-102
    Raymond J. McGrath..................................          99-102
    Michael R. McNulty..................................   \6\ 103, 104-
    Amo Houghton........................................            103-
North Carolina:
    William B. Grove....................................               3
    Thomas Blount.......................................             4-5
    Robert Williams.....................................               5
    David Stone.........................................               6
    James Holland.......................................               7
    Willis Alston.......................................          10-11,
                                                                      13
    William Gaston......................................           13-14
    Abraham Rencher.....................................          25, 27
    Henry W. Conner.....................................              26
    James I. McKay......................................           28-30
    Edward Stanly.......................................              32
    William M. Robbins..................................              45
    Edward W. Pou.......................................           60-61
    Claude Kitchin......................................           62-67
    Robert L. Doughton..................................           69-82
    James G. Martin.....................................           94-98
North Dakota:
    Martin N. Johnson...................................           54-55
    George M. Young.....................................           66-68
    Byron L. Dorgan.....................................          98-102
Ohio:
    William Creighton, Jr...............................              13
    Thomas R. Ross......................................              16
    Thomas Corwin.......................................           23-24
    Thomas L. Hamer.....................................              25
    Taylor Webster......................................              25
    Samson Mason........................................           26-27
    John B. Weller......................................              28
    Samuel F. Vinton....................................           29-31
    Lewis D. Campbell...................................           34-35
    John Sherman........................................              36
    Valentine B. Horton.................................              37
    George H. Pendleton.................................              38
    James A. Garfield...................................       39, 44-46
    Robert C. Schenck...................................           40-41
    Charles Foster......................................              43
    Milton Sayler.......................................              45
    William McKinley, Jr................................    46-47, 49-51
    Frank H. Hurd.......................................              48
    Charles H. Grosvenor................................           53-59
    Nicholas Longworth..................................    60-62, 64-67
    Timothy T. Ansberry.................................           62-63
    Alfred G. Allen.....................................              64
    George White........................................              65
    Charles C. Kearns...................................           68-71
    Charles F. West.....................................              73
    Thomas A. Jenkins...................................           73-85
    Arthur P. Lamneck...................................           74-75
    Stephen M. Young....................................              81
    Jackson E. Betts....................................           86-92
    Donald D. Clancy....................................           93-94
    Charles A. Vanik....................................           89-96
    Bill Gradison.......................................          95-103
    Don J. Pease........................................          97-102
    Rob Portman.........................................            104-
Oklahoma:
    Thomas A. Chandler..................................              67
    James V. McClintic..................................              73
    Wesley E. Disney....................................           74-78
    James R. Jones......................................           94-99
    Bill K. Brewster....................................             103
    Wes Watkins.........................................            105-
Oregon:
    William R. Ellis....................................              61
    Willis C. Hawley....................................           65-72
    Albert C. Ullman....................................           87-96
    Mike Kopetski.......................................             103
Pennsylvania:
    Thomas Fitzsimons...................................            1, 3
    Albert Gallatin.....................................             4-6
    Henry Woods.........................................               6
    John Smilie.........................................      6-7, 10-12
    Joseph Clay.........................................             8-9
    John Rea............................................              11
    Jonathan Roberts....................................           12-13
    Samuel D. Ingham....................................       13-14, 18
    John Sergeant.......................................          15, 25
    John Tod............................................              17
    John Gilmore........................................           21-22
    Horace Binney.......................................              23
    Richard Biddle......................................              26
    Joseph R. Ingersoll.................................       24, 27-29
    James Pollock.......................................              30
    Moses Hampton.......................................              31
    J. Glancy Jones.....................................          32, 35
    John Robbins........................................              33
    James H. Campbell...................................              34
    Henry M. Phillips...................................              35
    Thaddeus Stevens....................................           36-38
    James K. Moorhead...................................           39-40
    William D. Kelley...................................           41-50
    Russell Errett......................................              47
    Samuel J. Randall...................................              47
    William L. Scott....................................              50
    Thomas M. Bayne.....................................              51
    John Dalzell........................................           52-62
    A. Mitchell Palmer..................................           62-63
    J. Hampton Moore....................................           63-66
    John J. Casey.......................................          64, 68
    Henry W. Watson.....................................           66-73
    Harris J. Bixler....................................              69
    Harry A. Estep......................................           70-72
    Thomas C. Cochran...................................              73
    Joshua T. Brooks....................................              74
    Patrick J. Boland...................................           76-77
    Benjamin Jarrett....................................           76-77
    James P. McGranery..................................           77-78
    Herman P. Eberharter................................           78-85
    Richard M. Simpson..................................           78-86
    William J. Green, Jr................................           86-88
    John A. Lafore, Jr..................................              86
    Walter M. Mumma.....................................           86-87
    George M. Rhodes....................................           88-90
    Herman T. Schneebeli................................           87-94
    William J. Green, III...............................           90-94
    Raymond F. Lederer..................................           95-96
    Dick Schulze........................................          95-102
    Donald A. Bailey....................................              97
    William J. Coyne....................................             99-
    Rick Santorum.......................................             103
    Philip S. English...................................            104-
Rhode Island:
    Benjamin Bourne.....................................             3-4
    Francis Malbone.....................................               4
    Elisha R. Potter....................................               4
    Christopher G. Champlin.............................               5
    John Brown..........................................               6
    Joseph Stanton, Jr..................................               8
    Daniel L. D. Granger................................           59-60
    George F. O'Shaunessy...............................              65
    Richard S. Aldrich..................................           69-72
    Aime J. Forand......................................           78-86
    South Carolina:.....................................
    William L. Smith....................................             3-5
    Robert Goodloe Harper...............................             5-6
    Abraham Nott........................................               6
    David R. Williams...................................               9
    Langdon Cheves......................................              12
    Theodore Gourdin....................................              13
    William Lowndes.....................................           13-15
    John Taylor.........................................              14
    Thomas R. Mitchell..................................              17
    George McDuffie.....................................           18-22
    R. Barnwell Rhett...................................           25-26
    Francis W. Pickens..................................              27
    John L. McLaurin....................................           54-55
    Ken Holland.........................................           95-97
    Carroll A. Campbell, Jr.............................           98-99
Tennessee:
    Andrew Jackson......................................               4
    William C.C. Claiborne..............................               5
    William Dickson.....................................            7, 9
    George W. Campbell..................................              10
    Bennett H. Henderson................................              14
    Francis Jones.......................................           16-17
    James K. Polk.......................................           22-23
    Cave Johnson........................................              24
    George W. Jones.....................................           31-34
    Horace Maynard......................................       37, 40-42
    Benton McMillan.....................................           49-55
    James D. Richardson.................................           55-57
    Cordell Hull........................................    62-66, 68-71
    Edward E. Eslick....................................              72
    Jere Cooper.........................................           72-85
    Howard H. Baker.....................................           83-88
    James B. Frazier, Jr................................           85-87
    Ross Bass...........................................              88
    Richard H. Fulton...................................           89-94
    John J. Duncan......................................          92-100
    Harold E. Ford......................................          94-104
    Don Sundquist.......................................         101-103
    John S. Tanner......................................            105-
Texas:
    John Hancock........................................              44
    Roger Q. Mills......................................       46, 48-51
    Joseph W. Bailey....................................              55
    Samuel B. Cooper....................................           56-58
    Choice B. Randell...................................           60-62
    John N. Garner......................................           63-71
    Morgan G. Sanders...................................           72-75
    Milton H. West......................................           76-80
    Jesse M. Combs......................................           81-82
    Frank N. Ikard......................................           84-87
    Bruce Alger.........................................           86-88
    Clark W. Thompson...................................           87-89
    George H. W. Bush...................................           90-91
    Omar T. Burleson....................................           90-95
    Bill Archer.........................................             93-
    J.J. Pickle.........................................          94-103
    Kent R. Hance.......................................           97-98
    Michael A. Andrews..................................          99-103
    Sam Johnson.........................................            104-
    Greg Laughlin.......................................         \7\ 104
Utah:
    Walter K. Granger...................................              82
Vermont:
    Daniel Buck.........................................               4
    Israel Smith........................................         3, 4, 7
    Lewis R. Morris.....................................               5
    James Fisk..........................................          10, 12
    Horace Everett......................................              25
    Justin S. Morrill...................................           35-39
Virginia:
    James Madison.......................................         1, 3, 4
    William B. Giles....................................               5
    Richard Brent.......................................               5
    Walter Jones........................................               5
    Leven Powell........................................               6
    John Nicholas.......................................               6
    John Randolph.......................................         7-9, 20
    James M. Garnett....................................               9
    John W. Eppes.......................................       10-11, 13
    William A. Burwell..................................       12, 14-16
    James Pleasants.....................................           12-13
    John Tyler..........................................              16
    Andrew Stevenson....................................           17-19
    Alexander Smyth.....................................           20-21
    Philip P. Barbour...................................              21
    Mark Alexander......................................           21-22
    George Loyall.......................................           23-24
    John W. Jones.......................................           25-27
    John M. Botts.......................................              27
    Thomas W. Gilmer....................................              27
    Thomas H. Bayly.....................................          28, 31
    George C. Dromgoole.................................           28-29
    James McDowell......................................              30
    John Letcher........................................           34-35
    John S. Millson.....................................              36
    John R. Tucker......................................           44-47
    Claude A. Swanson...................................           55-58
    A. Willis Robertson.................................           75-79
    Burr P. Harrison....................................       82, 84-87
    W. Pat Jennings.....................................           88-89
    Joel T. Broyhill....................................           88-93
    Joseph L. Fisher....................................           94-96
    L.F. Payne..........................................         103-104
Washington:
    Francis W. Cushman..................................              61
    Lindley H. Hadley...................................           66-72
    Samuel B. Hill......................................           71-74
    Knute Hill..........................................              77
    Otis H. Holmes......................................           80-85
    Rodney D. Chandler..................................         100-102
    Jim McDermott.......................................            102-
    Jennifer Dunn.......................................            104-
West Virginia:
    William L. Wilson...................................       50, 52-53
    Joseph H. Gaines....................................           60-61
    George M. Bowers....................................           66-67
    Hubert S. Ellis.....................................              80
Wisconsin:
    Charles Billinghurst................................              34
    Robert M. La Follette...............................               1
    Joseph W. Babcock...................................           57-59
    James A. Frear......................................    66-68, 71-73
    Thaddeus F. B. Wasielewski..........................           78-79
    John W. Byrnes......................................           80-92
    William A. Steiger..................................           94-95
    Jim Moody...........................................         100-102
    Gerald D. Kleczka...................................            103-

\6\ Appointed January 25, 1996.
\7\ Appointed July 10, 1995.
---------------------------------------------------------------------------

                2. COMMITTEE MEMBERSHIP, 105TH CONGRESS

                      Committee on Ways and Means

                      One Hundred Fifth Congress                       
                      BILL ARCHER, Texas, Chairman                     
                                                                       
PHILIP M. CRANE, Illinois         CHARLES B. RANGEL, New York          
BILL THOMAS, California           FORTNEY PETE STARK, California       
E. CLAY SHAW, Jr., Florida        ROBERT T. MATSUI, California         
NANCY L. JOHNSON, Connecticut     BARBARA B. KENNELLY, Connecticut     
JIM BUNNING, Kentucky             WILLIAM J. COYNE, Pennsylvania       
AMO HOUGHTON, New York            SANDER M. LEVIN, Michigan            
WALLY HERGER, California          BENJAMIN L. CARDIN, Maryland         
JIM McCRERY, Louisiana            JIM McDERMOTT, Washington            
DAVE CAMP, Michigan               GERALD D. KLECZKA, Wisconsin         
JIM RAMSTAD, Minnesota            JOHN LEWIS, Georgia                  
JIM NUSSLE, Iowa                  RICHARD E. NEAL, Massachusetts       
SAM JOHNSON, Texas                MICHAEL R. McNULTY, New York         
JENNIFER DUNN, Washington         WILLIAM J. JEFFERSON, Louisiana      
MAC COLLINS, Georgia              JOHN S. TANNER, Tennessee            
ROB PORTMAN, Ohio                 XAVIER BECERRA, California           
PHILIP S. ENGLISH, Pennsylvania   KAREN L. THURMAN, Florida            
JOHN ENSIGN, Nevada                                                    
JON CHRISTENSEN, Nebraska                                              
WES WATKINS, Oklahoma                                                  
J. D. HAYWORTH, Arizona                                                
JERRY WELLER, Illinois                                                 
KENNY HULSHOF, Missouri                                                

                                
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