[House Report 106-1036]
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                                                 Union Calendar No. 598
106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                    106-1036
_______________________________________________________________________





          REPORT ON THE LEGISLATIVE AND OVERSIGHT ACTIVITIES

                                 of the

                      COMMITTEE ON WAYS AND MEANS

                               during the

                             106TH CONGRESS




 December 21, 2000.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
89-006                     WASHINGTON : 2000

                      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        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
WES WATKINS, Oklahoma                LLOYD DOGGETT, Texas
J.D. HAYWORTH, Arizona
JERRY WELLER, Illinois
KENNY HULSHOF, Missouri
SCOTT McINNIS, Colorado
RON LEWIS, Kentucky
MARK FOLEY, Florida
                         LETTER OF TRANSMITTAL

                              ----------                              

                          House of Representatives,
                               Committee on Ways and Means,
                                 Washington, DC, December 20, 2000.
Hon. Jeff Trandahl,
Clerk of the House of Representatives,
The Capitol, Washington DC.
    Dear Mr. Trandahl: I am herewith transmitting, pursuant to 
House Rule XI, clause 1(d), the report of the Committee on Ways 
and Means on its legislative and oversight activities during 
the 106th Congress. With best personal regards,
            Sincerely,
                                             Bill Archer, Chairman.
                            C O N T E N T S

                              ----------                              
                                                                   Page
Transmittal Letter...............................................   III
Foreword.........................................................   VII
 I. Legislative Activity Review.......................................1
        A. Legislative Review of Tax, Trust Fund, and Pension 
            Issues...............................................     1
        B. Legislative Review of Trade Issues....................    14
        C. Legislative Review of Health Issues...................    47
        D. Legislative Review of Social Security Issues..........    52
        E. Legislative Review of Human Resources Issues..........    56
        F. Legislative Review of Debt Issues.....................    63
II. Oversight Activity Review........................................65
        A. Oversight Agenda......................................    65
        B. Actions taken and recommendations made with respect to 
            oversight plan.......................................    74
        C. Additional oversight activities, and any 
            recommendations or actions taken.....................    92
Appendix I. Jurisdiction of the Committee on Ways and Means......    96
Appendix II. Historical Note.....................................   112
Appendix III. Statistical Review of the Activities of the 
  Committee on Ways and Means....................................   118
Appendix IV. Chairmen of the Committee on Ways and Means and 
  Membership of the Committee from the 1st through the 106th 
  Congresses.....................................................   123
                                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, as 
recodified in the 106th Congress, 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 at noon on January 3 
        of such year.
          (2) Such report shall include separate sections 
        summarizing the legislative and oversight activities of 
        that committee during that Congress.
          (3) The oversight section of such report shall 
        include a summary of the oversight plans submitted by 
        the committee under clause 2(d) of rule X, a summary of 
        the actions taken and recommendations made with respect 
        to each such plan, a summary of any additional 
        oversight activities undertaken by that committee, and 
        any recommendations made or actions taken thereon.
          (4) After an adjournment sine die of the last regular 
        session of a Congress, the chairman of a committee may 
        file an activities report under subparagraph (1) with 
        the Clerk at any time and without approval of the 
        committee, provided that--
                  (A) a copy of the report has been available 
                to each member of the committee for at least 
                seven calendar days; and
                  (B) the report includes any supplemental, 
                minority, or additional view submitted by a 
                member of the committee.

    The jurisdiction of the Committee on Ways and Means during 
the 106th 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(f).
          (6) The deposit of public monies.
          (7) Transportation of dutiable goods.
          (8) Tax exempt foundations and charitable trusts.
          (9) National social security (except health care and 
        facilities programs that are supported from general 
        revenues as opposed to payroll deductions and except 
        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 of Rule X that each standing 
committee submit its oversight plans for each Congress. The 
text of the Rule, as recodified in the 106th Congress, in 
pertinent part, follows:

    2. (a) The various standing committees shall have general 
oversight responsibilities as provided in paragraph (b) in 
order to assist the House in--
          (1) its analysis, appraisal, and evaluation of--
                  (A) the application, administration, 
                execution, and effectiveness of Federal laws; 
                and
                  (B) conditions and circumstances that may 
                indicate the necessity or desirability of 
                enacting new or additional legislation; and
          (2) its formulation, consideration, and enactment of 
        changes in Federal laws, and of such additional 
        legislation as may be necessary or appropriate.
    (b)(1) In order to determine whether laws and programs 
addressing subjects within the jurisdiction of a committee are 
being implemented and carried out in accordance with the intent 
of Congress and whether they should be continued, curtailed, or 
eliminated, each standing committee (other than the Committee 
on Appropriations) shall review and study on a continuing 
basis--
          (A) the application, administration, execution, and 
        effectiveness of laws and programs addressing subjects 
        within its jurisdiction;
          (B) the organization and operation of the Federal 
        agencies and entities having responsibilities for the 
        administration and execution of laws and programs 
        addressing subjects within its jurisdiction;
          (C) any conditions or circumstances that may indicate 
        the necessity or desirability of enacting new or 
        additional legislation addressing subjects within its 
        jurisdiction (whether or not a bill or resolution has 
        been introduced with respect thereto); and
          (D) future research and forecasting on subjects 
        within its jurisdiction.
    (2) Each committee to which subparagraph (1) applies having 
more than 20 members shall establish an oversight subcommittee, 
or require its subcommittees to conduct oversight in their 
respective jurisdictions, to assist in carrying out all its 
responsibilities under this clause. The establishment of 
anoversight subcommittee does not limit the responsibility of a 
subcommittee with legislative jurisdiction in carrying out its 
oversight responsibilities.
    (c) Each standing committee shall review and study 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 shall, in a meeting that is 
open to the public and with a quorum present, adopt its 
oversight plans for that Congress. Such plan shall be submitted 
simultaneously to the Committee on Government Reform and to the 
Committee on House Administration. In developing its plan each 
committee shall, to the maximum extent feasible--
          (A) consult with other committees that have 
        jurisdiction over the same or related laws, programs, 
        or agencies within its jurisdiction with the objective 
        of ensuring maximum coordination and cooperation among 
        committees when conducting reviews of such laws, 
        programs, or agencies and include in its plan an 
        explanation of steps that have been or will be taken to 
        ensure such coordination and cooperation;
          (B) give priority consideration to including in its 
        plan 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 jurisdiction are 
        subject to review every ten years.
    To carry out its work during the 106th 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 106th Congress is as follows:

                         Subcommittee on Trade

    PHILIP M. CRANE, Illinois, 
             Chairman

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

                       Subcommittee on Oversight

 AMO HOUGHTON, New York, Chairman

WILLIAM J. COYNE, Pennsylvania       ROB PORTMAN, Ohio
MICHAEL R. McNULTY, New York         JENNIFER DUNN, Washington
JIM McDERMOTT, Washington            WES WATKINS, Oklahoma
JOHN LEWIS, Georgia                  JERRY WELLER, Illinois
RICHARD E. NEAL, Massachusetts       KENNY HULSHOF, Missouri
                                     J.D. HAYWORTH, Arizona
                                     SCOTT McINNIS, Colorado

                         Subcommittee on Health

 BILL THOMAS, California, Chairman

FORTNEY PETE STARK, California       NANCY L. JOHNSON, Connecticut
GERALD D. KLECZKA, Wisconsin         JIM McCRERY, Louisiana
JOHN LEWIS, Georgia                  PHILIP M. CRANE, Illinois
JIM McDERMOTT, Washington            SAM JOHNSON, Texas
KAREN L. THURMAN, Florida            DAVE CAMP, Michigan
                                     JIM RAMSTAD, Minnesota
                                     PHILIP S. ENGLISH, Pennsylvania

                    Subcommittee on Social Security

   E. CLAY SHAW, Jr., Florida, 
             Chairman

ROBERT T. MATSUI, California         SAM JOHNSON, Texas
SANDER M. LEVIN, Michigan            MAC COLLINS, Georgia
JOHN S. TANNER, Tennessee            ROB PORTMAN, Ohio
LLOYD DOGGETT, Texas                 J.D. HAYWORTH, Arizona
BENJAMIN L. CARDIN, Maryland         JERRY WELLER, Illinois
                                     KENNY HULSHOF, Missouri
                                     JIM McCRERY, Louisiana

                    Subcommittee on Human Resources

  NANCY L. JOHNSON, Connecticut, 
             Chairman

BENJAMIN L. CARDIN, Maryland         PHILIP S. ENGLISH, Pennsylvania
FORTNEY PETE STARK, California       WES WATKINS, Oklahoma
ROBERT T. MATSUI, California         RON LEWIS, Georgia
WILLIAM J. COYNE, Pennsylvania       MARK FOLEY, Florida
WILLIAM J. JEFFERSON, Louisiana      SCOTT McINNIS, Colorado
                                     JIM McCRERY, Louisiana
                                     DAVE CAMP, Michigan
    The Committee on Ways and Means submits its report on its 
legislative and oversight activities for the 106th 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 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 11, 1999, 
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-106th Congresses.
                                                 Union Calendar No. 598
106th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                    106-1036

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



 
REPORT ON THE LEGISLATIVE AND OVERSIGHT ACTIVITIES OF THE COMMITTEE ON 
                WAYS AND MEANS DURING THE 106TH CONGRESS

                                _______
                                

 December 21, 2000.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    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 Tax, Trust Fund, and Pension Issues


          1. BILLS ENACTED INTO LAW DURING THE 106TH CONGRESS

a. Operation Allied Force

    On April 13, 1999, Committee Chairman Archer introduced, 
and the Committee marked up, H.R. 1376, a bill to extend tax 
relief for personnel involved in Operation Allied Force (H. 
Rept. 106-90). The bill passed the House and the Senate on 
April 15, 1999, and the President signed it on April 19, 1999 
(P.L. 106-21).
    In summary, the bill extended combat zone tax benefits to 
those serving in (or in support of) Operation Allied Force by 
treating the Federal Republic of Yugoslavia (Serbia/
Montenegro), Albania, the Adriatic Sea, and the northern Ionian 
Sea (including all of their airspaces) as a qualified hazardous 
duty area. Thus, military personnel serving in this area became 
entitled to various types of tax relief, including an exemption 
for compensation earned while in the hazardous duty area, a 
suspension of various tax filing and payment requirements, and 
an exemption from telephone excise taxes. In addition, military 
personnel serving as part of Operation Allied Force but 
performing services outside of the qualified hazardous duty 
area qualified for the suspension of various tax filing and 
payment requirements, provided that their services were 
performed outside the United States and while deployed away 
from their permanent duty stations.

b. Tax Relief Extension Act of 1999

    On September 23, 1999, Committee Chairman Archer introduced 
H.R. 2923, abill to extend certain expiring provisions, to 
fully allow nonrefundable personal income tax credits against regular 
tax liability, and for other purposes. Many of its provisions were 
substantially identical to provisions in H.R. 2488 discussed in section 
I.A.2.a., below. On September 27, 1999, the Committee marked up H.R. 
2923 (H. Rept. 106-344). The provisions of the bill were incorporated 
(along with other tax provisions) into the conference report on H.R. 
1180, the ``Ticket to Work and Work Incentives Improvement Act of 
1999'' (Conference Rept. 106-478), and that bill was signed by the 
President on December 17, 1999 (P.L. 106-170).
    In summary, the bill extended through December 31, 2001, 
the following provisions: Alternative Minimum Tax treatment of 
nonrefundable credits, subpart F exception for active financing 
income, suspension of the 100 percent net income limit for 
marginal oil and gas properties, work opportunity tax credit, 
welfare to work credit, employer provided educational 
assistance, section 45 credit (with modifications), qualified 
zone academy bond program (with modifications), D.C. homebuyer 
credit, brownfields environmental remediation, and rum excise 
tax coverover to Puerto Rico and the Virgin Islands. The 
research and experimentation tax credit was extended until June 
30, 2004 (and expanded to cover research in Puerto Rico). The 
bill included several time sensitive provisions, including 
provisions related to Administrative Pricing Agreements, 
potential Y2K failures, Streptoccocus pneumoniae vaccines, dyed 
fuels, and farm production payments. The bill also included 
several revenue offsets, including provisions to clarify the 
tax treatment of income and losses from derivatives, require 
the reporting of cancellation of indebtedness by non-banks, 
prevent conversion of ordinary income and short-term capital 
gains into long-term capital gains, allow transfers of excess 
defined benefit plan assets for retiree health, modify the 
installment method of accounting and prohibit its use by 
accrual basis taxpayers, clarify the treatment of charitable 
split dollar life insurance, modify the tax treatment of 
distributions of corporate stock by a partnership to a 
corporate partner, allow Real Estate Investment Trusts 
(``REITs'') to have taxable subsidiaries, prevent owners of 
REITS from delaying estimated tax payments, and modify the 
individual estimated tax safe harbor for taxpayers with 
adjusted gross incomes in the prior year in excess of $150,000.

c. Full and Fair Political Activities Disclosure Act of 2000

    On June 22, 2000, the Committee marked up H.R. 4717 (H. 
Rept. 106-702). On June 27, 2000, Subcommittee Chairman 
Houghton introduced H.R. 4762, a bill similar to H.R. 4717. The 
House subsequently passed under suspension of the rules, H.R. 
4762, on June 28, 2000; the Senate passed the bill on June 29, 
2000, and the President signed the bill into law July 1, 2000 
(P.L. 106-230).
    In summary, H.R. 4762 would require a political 
organization to give notice within 24 hours of being 
established in order to be eligible for treatment under section 
527 of the Internal Revenue Code. The bill also provides that 
if notice is given after such period, the organization shall 
not be so treated for any period before the notice is given. In 
the case of an organization failing to give such notice, the 
bill requires the organization's taxable income to be computed 
by taking into account any exempt function income (and any 
deductions directly connected with the production of such 
income). The bill excepts certain organizations from the 
notification requirement. The bill makes information on 
organizations that file such notices, and such notices, 
publicly available, prescribes monetary penalties for failures 
to meet certain public availability requirements, and grants 
existing organizations to whom the bill applied 30 days from 
the enactment date to file a notice. The bill prescribes tax 
penalties for failures by political organizations to make 
certain disclosures of contributions and expenditures for 
exempt functions, exempts certain organizations and political 
committees from the disclosure requirement, makes such 
disclosures publicly available, and prescribes monetary 
penalties for failures to make disclosures available for 
inspection. The bill requires political organizations which 
have gross receipts of $25,000 or more per taxable year, with 
an exception, to file tax returns, provides for public 
disclosure of such returns, and prescribes monetary penalties 
for failures to file or provide correct information.

d. Miscellaneous Trade and Technical Corrections Act of 1999

    In addition to the trade provisions of H.R. 435, the 
``Miscellaneous Trade and Technical Corrections Act of 1999'' 
(more fully described in section I.B.8.a., below), the bill 
included one provision amending the Internal Revenue Code. The 
provision generally would eliminate the distinction between the 
assumption of a liability and the acquisition of an asset 
subject to a liability for transfers after October 18, 1998. 
The ``Miscellaneous Trade and Technical Corrections Act of 
1998,'' H.R. 4856, as passed by the House on October 20, 1998, 
contained a substantially identical provision.

e. Trade and Development Act of 2000

    In addition to the trade provisions of H.R. 434, the 
``Trade and Development Act of 2000'' (more fully described in 
section I.B.7., below), the bill included two tax-related 
provisions. One provision permits the President to waive the 
foreign tax credit restrictions of Internal Revenue Code 
section 901(j) if the President determines that such a waiver 
is in the U.S. national interest and will expand trade 
opportunities for U.S. companies. The other provision 
accelerates the payment of amounts attributable to the increase 
in the rum coverover rate to $13.25 per proof gallon (as 
provided for in H.R. 1180, the ``Ticket to Work and Work 
Incentives Improvements Act of 1999''). In addition, the bill 
includes two clarifications to the rules governing coverover 
payments.

f. FSC Repeal and Extraterritorial Income Exclusion Act of 2000

    On July 27, 2000, Committee Chairman Archer introduced, and 
the Committee marked up, H.R. 4986, the ``FSC Repeal and 
Extraterritorial Income Exclusion Act of 2000'' (H. Rept. 106-
845). The bill passed the House on September 13, 2000. The 
Senate passed an amended version of the bill (identical to the 
provision included in the conference report to H.R. 2614) on 
November 1, 2000. The House passed the Senate amendment on 
November 14, 2000, and the President signed the bill into law 
on November 15, 2000 (P.L. 106-519).
    In response to World Trade Organization (WTO) dispute 
settlement decisions, the bill repealed the provisions of the 
Internal Revenue Code relating to foreign sales corporations 
(FSCs). To comply with this WTO decision and to prevent U.S. 
workers and companies from being disadvantaged, the bill 
reforms current tax rules to exclude certain extraterritorial 
income from gross income. As under a territorial tax system, 
taxpayers with certain foreign trade income would avoid double 
taxation of income through an exemption from U.S. taxation 
(rather than through a foreign tax credit relating to such 
income).
    The bill generally applies to transactions after September 
30, 2000. No new FSCs would be able to be formed after 
September 30, 2000, and a limited transition period would apply 
to existing FSCs.

g. Community Renewal Tax Relief Act of 2000

    On July 24, 2000, Representative Watts introduced H.R. 
4923, the ``Community Renewal and New Markets Act of 2000.'' On 
July 25, 2000, the House passed H.R. 4923. Titles I, IV, and V 
of the bill included provisions similar to sections 701 through 
705, 1101 through 1107 and 1181 of H.R. 2488, the ``Taxpayer 
Refund and Relief Act of 1999,'' and sections 401 through 405, 
501 through 507, and 511 of H.R. 3081, the ``Small Business Tax 
Fairness Act.'' Provisions substantially similar to H.R. 4923 
were also included in title VI of H.R. 5542, the ``Taxpayer 
Relief Act of 2000,'' as incorporated into the conference 
report on H.R. 2614. On December 14, 2000, Chairman Archer 
introduced H.R. 5662, the ``Community Renewal and New Markets 
Act,'' which included provisions identical to title VI of H.R. 
5542.
    On September 26, 2000, the House passed under suspension of 
the rules H.R. 5117, the ``Missing Children Tax Fairness Act of 
2000.'' The provisions of the bill were subsequently included 
in H.R. 2614, the ``Taxpayer Relief Act of 2000'' (see section 
I.A.2.b., below) and H.R. 5662. The bill would have clarified 
that families could continue to claim the child credit, 
dependent exemption and the earned income credit in the case of 
abducted children.
    On May 25, 2000, Congressman Thomas Ewing introduced H.R. 
4541, the ``Commodity Futures Modernization Act of 2000.'' On 
October 19, 2000, the bill passed the House under suspension of 
the rules. The bill, as passed by the House, included several 
changes to the Internal Revenue Code. These tax-related 
provisions generally modified the tax treatment of securities 
futures contracts. The tax-related provisions of H.R. 4541 were 
included in H.R. 5662.
    The provisions of H.R. 5662 were incorporated by reference 
into the conference report on H.R. 4577. H.R. 4577 passed the 
House and Senate on December 15, 2000.
    In summary, the bill establishes a procedure for the 
designation of 40 ``renewal communities,'' at least eight of 
which must be in rural areas. Once an area is designated as a 
renewal community, individuals and businesses located in the 
renewal community would be eligible for a variety of tax 
incentives: a zero capital gains rate, increased expensing for 
small businesses, an employment wage credit, and community 
revitalization deductions. The bill also permits the 
designation of nine new empowerment zones and expands and 
extends current empowerment zone tax benefits. The bill permits 
the Treasury Department to direct the allocation of up to $7.5 
billion in ``New Markets Tax Credits'' to community development 
entities that provide assistance to individuals and businesses 
in low-income areas. The bill also includes an increase in the 
low income housing tax credit and an acceleration of the 
scheduled increase in the private activity bond volume cap. In 
addition, the bill permits greater deduction (rather than 
capitalization) of certain environmental remediation costs.
    H.R. 5662 also renamed ``medical savings accounts'' as 
``Archer MSAs'' and extended the program for two more years. 
The bill also extended the D.C. homebuyer credit for two years 
and the D.C. enterprise zone for one year. It extended and 
modified the enhanced deduction for corporate donations of 
computer technology and modified the tax treatment of Indian 
tribes for FUTA purposes. The bill included several 
administrative provisions and technical corrections, 
substantially identical to those in H.R. 5542 (see I.A.2.b., 
below).

                 2. Comprehensive Tax Relief Proposals

a. Taxpayer Refund and Relief Act of 1999

    On January 20, 1999, the Committee held hearings on the 
Outlook for the State of the U.S. Economy in 1999. On February 
4 and March 10, 1999, the Committee held hearings on the 
President's Fiscal Year 2000 Budget. On June 16 and 23, 1999, 
the Committee held hearings on Reducing the Tax Burden. On June 
30, 1999, theCommittee held a hearing on the Impact of U.S. Tax 
Rules on International Competitiveness.
    On July 13, 1999, Committee Chairman Archer introduced H.R. 
2488, the ``Financial Freedom Act of 1999.'' On July 13 and 14, 
2000, the Committee marked up the bill (H. Rept. 106-238). The 
House passed the bill on July 22, 1999. The Senate passed the 
bill, as amended, on July 30, 1999. On August 4, 1999, the 
conference report on H.R. 2488 (H. Rept. 106-289), retitled the 
``Taxpayer Refund and Relief Act of 1999,'' was filed. The 
House passed the conference report, as did the Senate, on 
August 5, 1999. The President vetoed the bill on September 23, 
1999.
    In summary, title I of the conference report included 
broad-based and family tax relief, including a reduction in 
individual income tax rates and expansion of the lowest 
individual regular income tax rate bracket, marriage penalty 
relief provisions (see section I.A.3.a., below), and repeal of 
the individual alternative minimum tax. Title II included 
capital gains tax relief and IRA changes. Title III consisted 
of business alternative minimum tax relief. Titles IV, V, and 
VI included education savings incentives (see section I.A.3.g., 
below), health care provisions (see section I.A.3.i., below), 
and death tax relief (see section I.A.3.b., below). Title VII 
would have provided tax relief for distressed communities and 
industries, including renewal communities (see section 
I.A.1.g., above) and farming, oil and gas, and timber 
incentives. Title VIII related to tax relief for small 
businesses (see section I.A.3.h., below). International tax 
relief, including modification of the interest allocation 
rules, was included in title IX, and provisions relating to 
tax-exempt organizations were included in title X. Title XI 
consisted of real estate provisions, including an increase in 
the low income housing tax credit (see section I.A.1.g., above) 
and a provision allowing taxable REIT subsidiaries. Title XII 
was composed of provisions relating to pensions (see section 
I.A.3.e., below). Title XIII included miscellaneous provisions 
affecting individuals, businesses, excise taxes, and the United 
States Tax Court. Title XIV would have extended several 
expiring provisions (see section I.A.1.b., above). Title XV 
included several revenue offsets.

b. Taxpayer Relief Act of 2000

    On October 25, 2000, Representative Armey introduced H.R. 
5542, the ``Taxpayer Relief Act of 2000.'' The provisions of 
H.R. 5542 were incorporated by reference into the conference 
report on H.R. 2614. The conference report on H.R. 2614 passed 
the House on October 26, 2000.
    In summary, the bill included several provisions similar to 
or identical to provisions that had previously passed the 
House, including FSC repeal and extraterritorial income 
exclusion (see section I.A.1.f., above), small business tax 
relief (see section I.A.3.h., below), health insurance and 
long-term care insurance provisions (see section I.A.3.i., 
below), pension and individual retirement arrangement 
provisions (see section I.A.3.e., below), tax-exempt bond 
provisions for school construction (see section I.A.3.g., 
below) and an expansion of the qualified zone academy bond 
program, and community revitalization (see section I.A.1.g., 
above). The bill also included several administrative and 
miscellaneous provisions and technical corrections (see section 
I.A.1.g., above).

                      3. ISSUE SPECIFIC TAX BILLS

a. Marriage Tax Penalty Relief

    On February 10, 1999, Representative Weller introduced H.R. 
6. See discussion of the ``Taxpayer Refund and Relief Act of 
1999'' at section I.A.2.a., above, for earlier action relating 
to marriage tax penalty relief. On February 2, 2000, the Full 
Committee marked up and ordered reported with an amendment, 
H.R. 6, the ``Marriage Tax Penalty Relief Act of 2000.'' The 
report was filed on February 7, 2000 (H. Rept. 106-493) and the 
House passed the bill on February 10, 2000. Pursuant to 
H.Con.Res. 290, budget reconciliation for Fiscal Year 200l, the 
provisions of H.R. 6 were introduced as H.R. 4810 and passed by 
the House on July 12, 2000. H.R. 4810 was amended and approved 
by the Senate on July 18, 2000. On July 19, 2000, a conference 
report to accompany H.R. 4810 was filed (H. Rept. 106-765) and 
was passed by the House on July 20 by a vote of 271-156 and by 
the Senate on July 21, 2000, by a vote of 60-34. On August 5, 
2000, the President vetoed H.R. 4810. On September 13, 2000, 
the House failed to override the President's veto.
    In summary, H.R. 6 would have provided net tax reduction of 
over $50 billion during the period Fiscal Year 2000-2005. Under 
the bill, the basic standard deduction for a married couple 
filing a joint return would have increased to twice that of a 
taxpayer filing a single return, effective for tax years after 
2000. The bill also would have expanded, over a six-year phase-
in period beginning in tax years after 2002, the 15 percent 
regular income tax bracket for a married couple filing a joint 
return to twice the size of the corresponding bracket for a 
single return. In addition, H.R. 6 would have repealed current 
law provisions that offset refundable income tax credits by the 
amount of the alternative minimum tax (AMT), effective for tax 
years after 2001. Finally, the bill would have increased by 
$2,000 the beginning and ending income levels for the earned 
income credit (EIC) phaseout for married couples filing 
jointly, effective for tax years after 2000.
    The conference agreement would have provided over $89 
billion of net tax reliefover fiscal years 2001-05, 
incorporating many of the provisions of the House passed bill. The 
primary difference related to the effective dates of the provisions. 
Under the conference agreement, the standard deduction and EIC 
increases, together with the 15 percent bracket expansion, would have 
been effective in tax year 2000. Finally, all of the tax reductions 
would have sunset January 1, 2005.

b. Death Tax Repeal

    On February 25, 1999, Representative Dunn introduced H.R. 
8, the ``Death Tax Elimination Act.'' On May, 25, 2000, the 
Committee marked up H.R. 8, retitled the ``Death Tax 
Elimination Act of 2000'' (H. Rept. 106-651). The bill passed 
the House on June 9, 2000, by a vote of 279-136 and the Senate 
on July 14, 2000 by a vote of 59-39. The bill was vetoed by the 
President on August 31, 2000, and the House failed to override 
the veto on September 7, 2000.
    In summary, the bill provided for a phased-in repeal of 
estate, gift, and generation-skipping taxes. Prior to full 
repeal in 2010, the estate and gift tax rates (and the 
generation-skipping tax rate) would have been reduced as 
follows. Beginning in 2001, the 55 percent tax rate and the 5 
percent surtax would have been repealed. Beginning in 2002, the 
highest rate would be 50 percent. Each of these rates would be 
reduced by 1 percentage point per year from 2003 through 2006, 
1.5 percentage point in 2007, and 2 percentage points in 2008 
and 2009. However, no rate would be reduced below the lowest 
general individual income tax rate for unmarried individuals 
and the highest rate would not be reduced below the highest 
general individual income tax rate for unmarried individuals. 
From 2003 through 2009, the State death tax credit rates would 
be reduced in proportion to the Federal estate and gift tax 
rate reductions. Beginning in 2001, the unified estate and gift 
tax credit would be replaced by an exemption. After repeal of 
the estate, gift, and generation skipping taxes, the basis of 
assets received from a decedent generally would be the basis of 
the decedent (i.e., carryover basis); however, current law 
basis step up rules would be retained for $3 million of assets 
left to a surviving spouse and $1.3 million of other assets 
left to any beneficiary (the $3 million and $1.3 million 
figures would be indexed for inflation).
    The bill would have made a number of simplifying changes to 
the generation-skipping tax prior to its repeal. In addition, 
the bill would have expanded the availability of the estate tax 
rule for qualified conservation easements by modifying the 
distance requirements. Under the bill, the maximum distance of 
eligible land from a metropolitan area, national park, or 
wilderness area would have been increased from 25 to 50 miles, 
and from an Urban National Forest, it would have been increased 
from 10 to 25 miles. The bill also would have clarified that 
the date for determining easement compliance would be the date 
on which the donation was made.

c. Railroad Retirement

    On July 13, 2000, Representative Shuster introduced H.R. 
4844, the ``Railroad Retirement and Survivors Improvement Act 
of 2000.'' On July 25, 2000, the Committee marked up H.R. 4844 
(H. Rept. 106-777, Part 2). On September 7, 2000, the House 
passed the bill under suspension of the rules. No further 
action taken by Senate.
    In summary, the tax provisions of the bill would have 
lowered the Tier 2 tax rate on employers from 16.1 percent to 
15.6 percent in calendar year 2001 and 14.2 percent in 2002. 
Beginning in calendar year 2003, the bill would have provided 
for automatic modifications in the Tier 2 tax rates for 
employers and employees based on the ratio of certain asset 
balances to the sum of benefits and administrative expenses 
(average account benefits ratio). If the average account 
benefits ratio were to fall between 4.0 and 6.1, the tax rate 
for employers and employees would have been 13.1 percent and 
4.9 percent, respectively. If the ratio were to fall below 4.0, 
the tax rate for employers would have automatically increased 
to a level specified in the law. If the ratio were to exceed 
6.0, the tax rate for employers and employees would have 
decreased to a level specified in the law. In addition to the 
changes in the Tier 2 tax rate, the bill would have repealed 
the supplemental annuity tax paid by employers.
    As passed by the Committee, the bill would have repealed 
the 4.3 cents-per-gallon General Fund excise taxes on diesel 
fuel used in trains and fuel used in barges operating on the 
designated inland waterways system, effective on October 1, 
2000.

d. Social Security Benefits Taxation

    On July 17, 2000, Committee Chairman Archer introduced H.R. 
4865, the ``Social Security Benefits Tax Relief Act of 2000.'' 
On July 19, 2000, the Committee marked up H. Rept. 106-780. The 
House passed the bill on July 27, 2000. No further action taken 
by Senate.
    In summary, the ``Social Security Benefits Tax Relief 
Act,'' would have repealed the second-tier, 85 percent 
inclusion of Social Security benefits enacted as part of the 
1993 Omnibus Budget Reconciliation Act. Thus, the maximum 
amount of Social Security benefits included in gross income 
would have been reduced to 50 percent under the Committee bill. 
The amount equal to the revenues from the income taxation of 
Social Security benefits which would have been credited to the 
HI Trust Fund under the 1993 Act (but would not be credited 
under the repeal contained in this bill) would have been 
transferred to the Hospital Insurance Trust Fund from the 
general fund in the U.S. Department of the Treasury. The 
provisions would have been effective for taxable years 
beginning after December 31, 2000.

e. Pension Reform

    On March 23, 1999, the Committee on Ways and Means 
Subcommittee on Oversight held a hearing on pension issues. On 
June 16, 1999, the Committee on Ways and Means held a hearing 
on enhancing retirement and health security.
    The House passed pension reform five times during the 106th 
Congress, the first occasion in H.R. 2488, the ``Taxpayer 
Refund and Relief Act of 1999.'' For a history of that bill, 
refer to section I.A.2.a., above.
    In summary, title II of H.R. 2488 contained a number of 
Individual Retirement Account (IRA) reform provisions, 
including: an increase in the maximum contribution limit for 
traditional and Roth IRAs, catch-up contributions to 
traditional and Roth IRAs for individuals age 50 and above, and 
an increase in the income limits for Roth IRA contributions and 
conversions. Title XII of H.R. 2488 contained a series of 
pension reform provisions. Subtitle A contained provisions for 
expanding coverage, including an increase in contribution and 
benefit limits, an increase in the deduction limits, 
modification of the top-heavy rules, and an option to treat 
elective deferrals as after-tax contributions. Subtitle B 
contained provisions for enhancing fairness for women and other 
participants, including additional catch-up contributions to 
401(k)-type plans for individuals age 50 and above, faster 
vesting of employer matching contributions, and simplification 
and modification of the minimum required distribution rules. 
Subtitle C contained provisions for increasing the portability 
of retirement plan assets, including rollovers between 
different types of retirement plans and IRAs, rollovers of 
after-tax contributions, the elimination of the same-desk rule, 
and the purchase of service credit under governmental pension 
plans. Subtitle D contained provisions for strengthening 
pension security and enforcement, including a phase-in of the 
repeal of the current liability funding limit, an expansion of 
the maximum deduction rule, notice of significant reduction in 
plan benefit accruals, and the repeal of the 100 percent of 
compensation limit under section 415 for multiemployer plans. 
Subtitle E contained provisions for reducing regulatory 
burdens, including modification of the timing of plan 
valuations, reinvestment of Employee Stock Ownership Plan 
(``ESOP'') dividends without loss of the deduction, 
clarification of the treatment of employer-provided retirement 
advice, and modification of the nondiscrimination rules.
    The House again passed pension reform in H.R. 3081, the 
``Wage and Employment Growth Act of 1999.'' For a history of 
the bill, refer to section I.A.3.h., below.
    In summary, title II of H.R. 3081 generally contained the 
same pension package as that included in title XII of H.R. 
2488, the ``Taxpayer Refund and Relief Act of 1999.'' The 
principal difference was that the pension package in H.R. 3081 
did not contain any modifications to the Employee Retirement 
Income Security Act of 1974 (``ERISA''). In addition, H.R. 3081 
did not contain any modifications to the IRA rules.
    On March 9, 1999, Representative Portman introduced H.R. 
1102, the Comprehensive Retirement Security and Pension Reform 
Act.'' On July 13, 2000, Committee Chairman Archer introduced, 
and the Committee marked up, H.R. 4843, the ``Comprehensive 
Retirement Security and Pension Reform Act of 2000'' (H. Rept. 
106-753). The text of H.R. 4843 was then substituted into H.R. 
1102, the ``Comprehensive Retirement Security and Pension 
Reform Act of 2000,'' and the House passed H.R. 1102 on July 
19, 2000. On September 13, 2000, the Senate Finance Committee 
marked up H.R. 1102, the ``Retirement Security and Savings Act 
of 2000,'' and reported the bill, as amended.
    In summary, the House-passed version of H.R. 1102 generally 
contained the same pension package as that included in title 
XII of H.R. 2488, the ``Taxpayer Refund and Relief Act of 
1999,'' and H.R. 3081, the ``Small Business Tax Fairness Act of 
2000.'' The principal differences were that H.R. 1102 increased 
the deduction limit for contributions to stock bonus and profit 
sharing plans, provided that catch-up contributions to 401(k)-
type plans are subject to the nondiscrimination and top-heavy 
rules, modified the section 415 aggregation rules that apply to 
multiemployer plans, and provided rules for prohibited 
allocations of stock in ESOPs of subchapter S corporations. The 
House-passed version of H.R. 1102 also increased the maximum 
contribution limit for traditional and Roth IRAs and provided 
for catch-up contributions to traditional and Roth IRAs for 
individuals age 50 and above.
    On September 19, 2000, the House of Representatives passed 
H.R. 5203, the ``Debt Relief and Retirement Security 
Reconciliation Act.'' Division B of H.R. 5203 contained the 
same pension and IRA package as that contained in H.R. 1102, as 
passed by the House of Representatives on July 19, 2000.
    The House passed pension reform for a fifth time as part of 
H.R. 2614 which incorporated H.R. 5542, the ``Taxpayer Relief 
Act of 2000.'' For a history of that bill, refer to section 
I.A.2.b., above.
    Title IV of H.R. 5542, as incorporated by reference in H.R. 
2614, generally contained the same pension package as that 
included in title XII of H.R. 2488, the ``Taxpayer Refund and 
Relief Act of 1999,'' H.R. 3081, the ``Small Business Tax 
Fairness Act of 2000,'' H.R. 1102, the ``Comprehensive 
Retirement Security and Pension Reform Act of 2000,'' and H.R. 
5203, the ``Debt Relief and Retirement Security Reconciliation 
Act.'' The principal differences were that H.R. 5542 increased 
the deduction limit for contributions to stock bonus and profit 
sharing plans to 25 percent of compensation and included 
modifications to the Employee Retirement Income Security Act of 
1974 (``ERISA''). H.R. 5542 also increased the maximum 
contribution limit for traditional and Roth IRAs, provided for 
catch-up contributions to traditional and Roth IRAs for 
individuals age 50 and above, increased the income limits for 
deductible IRA contributions and Roth IRA contributions and 
conversions, and allowed tax-freewithdrawals from IRAs for 
charitable purposes.

f. Telephone Excise Tax Repeal

    On March 14, 2000, Representative Portman introduced H.R. 
3916, a bill to repeal the Federal excise tax on telephone and 
other communication services. On May 16, 2000, the Oversight 
Subcommittee held a hearing on internet taxation issues 
including the repeal of the telephone excise tax. On May 17, 
2000, the Committee marked up H.R. 3916 (H. Rept. 106-631). The 
House passed the bill on May 25, 2000. The Senate Finance 
Committee reported the bill with an amendment on July 5, 2000 
(S. Rept. 106-328). No further action taken. On July 27, 2000, 
the conference committee on H.R. 4516, the ``Legislative Branch 
Appropriations and Treasury Postal Appropriations for FY 
2001,'' included a repeal of the communications excise tax, 
effective October 1, 2000. The House passed the conference 
report on September 14, 2000 and the Senate passed the 
conference report on October 12, 2000. The legislation was 
vetoed by the President on October 30, 2000.

g. Education Tax Incentives

    On March 1, 1999, Representative Hulshof introduced H.R. 7, 
the ``Education Savings and School Excellence Act of 1999.'' 
The Ways and Means Committee held hearings on June 23, 1999, on 
proposals to strengthen families, including measures to provide 
education tax incentives. On March 22, 2000, the Committee 
marked up H.R. 7, retitled as the ``Education Savings and 
School Excellence Act of 2000'' (H. Rept. 106-546). No further 
action taken.
    In summary, the bill would have increased the annual 
contribution limit to education savings accounts or ``ESAs'' 
(also known as education IRAs) from $500 to $2,000 per 
beneficiary and allowed corporate contributions to such 
accounts. Limitations were waived in the case of special needs 
beneficiaries. In addition, the bill would have permitted 
contributions to ESAs for a year until April 15 of the 
following tax year. The changes would have been effective for 
taxable years after December 31, 2000. The bill would have 
allowed tax-free distributions from ESAs for qualified 
elementary and secondary school expenses, in addition to higher 
education costs, effective January 1, 2001.
    Both the contribution and earnings portions of 
distributions from qualified State tuition programs would have 
been excludable from gross income, beginning in 2001. In 
addition, private colleges would have been allowed to offer 
pre-paid tuition plans. As with State-sponsored tuition plans, 
distributions from private pre-paid plans would have been tax-
free.
    The bill would have increased the income limits for 
purposes of the student loan interest deduction so that 
individuals with adjusted gross incomes of up to $45,000 could 
have claimed a deduction of up to $2,500 in 2001. The bill also 
would have eliminated the marriage tax penalty contained in the 
student loan interest rules so that the beginning point of the 
phaseout range would be twice the phaseout limit for single 
taxpayers. In addition, the bill would have repealed the 60-
month limitation during which interest may be deducted and the 
restriction that nonmandatory payments of interest are not 
deductible.
    The bill would have provided tax-free treatment under 
section 117 of the Internal Revenue Code for the National 
Health Corps Scholarships and certain other Federal- and State-
sponsored health scholarship programs.
    The bill would have increased the small issuer tax exempt 
bond exception to $15 million, provided that at least $10 
million of the bonds are issued to finance public schools, 
effective for bonds issued after 2000. In addition, the bill 
would have liberalized the construction bond expenditure rule 
for certain public school bonds.
    The bill would have extended for one year, through December 
31, 2001, the current law provisions which allow corporations 
to claim an enhanced charitable deduction for contributions of 
computers to elementary and secondary schools.
    The bill would have provided that the 2-percent floor 
limitation on miscellaneous itemized deductions not apply to 
certain professional development expenses of elementary and 
secondary teachers, effective after December 31, 2000.

h. Small Business Tax Relief

    On October 14, 1999, Representative Lazio introduced H.R. 
3081, the ``Wage and Employment Growth Act of 1999.'' On 
November 11, 1999, the Committee marked up H.R. 3081 (H. Rept. 
106-467). On March 6, 2000, Committee Chairman Archer 
introduced H.R. 3832, the ``Small Business Tax Fairness Act of 
2000.'' On March 9, 2000, pursuant to H. Res. 434, the text of 
H.R. 3832 was considered as adopted in H.R. 3081, in lieu of 
the Committee on Ways and Means amendment printed in H.R. 3081. 
H.R. 3081, as so amended, passed the House on March 9, 2000.
    In summary, the bill contained tax incentives for small 
businesses, including an acceleration of the scheduled increase 
in the 100 percent deduction for health insurance costs of 
self-employed persons, an increase in the trade or business 
property expensing limit, an increased deduction for meal 
expenses, modifications to the income averaging rules for 
farmers and fishermen, and repeal of the occupational taxes for 
distilled spirits, wine, and beer. The bill also included 
provisions related to pension reform (see section I.A.3.e., 
above), death tax relief (see section I.A.3.b., above), tax 
relief for distressed communities (see section I.A.1.g., above) 
and industries, and modifications to the lowincome housing tax 
credit and bond volume cap (see section I.A.1.g., above).

i. Health Care

    On June 16, 1999, the Committee on Ways and Means held a 
hearing on enhancing retirement and health security.
    The House passed three health care packages during the 
106th Congress. The first of these packages was included in 
H.R. 2488, the ``Taxpayer Refund and Relief Act of 1999.'' For 
a history of that bill, refer to section I.A.2.a., above.
    In summary, title V of the bill contained a series of 
health care provisions, including an above-the-line deduction 
for health and long-term care insurance expenses, the allowance 
of long-term care insurance to be offered as part of a 
cafeteria plan, and an additional dependency deduction for 
caretakers of elderly family members. Title VIII of the bill 
contained a series of small business tax relief provisions, 
including an acceleration to 100 percent of the self-employed 
health insurance deduction. Title XIV of the bill contained a 
series of miscellaneous provisions, including a credit for 
clinical testing research expenses attributable to certain 
qualified academic institutions.
    On September 30, 1999, Representative Talent introduced 
H.R. 2990, the ``Quality Care for the Uninsured Act of 1999.'' 
On October 7, 1999, the House of Representatives passed H.R. 
2990. H.R. 2990 was organized into two divisions: Division A 
was the ``Quality Care for the Uninsured Act of 1999,'' and 
Division B was the ``Bipartisan Consensus Managed Care 
Improvement Act of 1999.''
    In summary, Division A of H.R. 2990 generally contained the 
same health care package as that included in H.R. 2488, the 
``Taxpayer Refund and Relief Act of 1999.'' The principal 
difference was that H.R. 2990 modified and expanded the rules 
applicable to medical savings accounts (MSAs) by making the 
program permanent, providing for full availability of the 
program, lowering the minimum deductible, increasing permitted 
contributions, permitting both employee and employer 
contributions, and allowing MSAs to be offered as part of 
cafeteria plans.
    The house again passed a health care package as part of 
H.R. 2614 which incorporated H.R. 5542, the ``Taxpayer Relief 
Act of 2000.'' For a history of that bill, refer to section 
I.A.2.b., above.
    Title III of H.R. 5542, as incorporated by reference in 
H.R. 2614, contained various health and long-term care 
provisions, including an above-the-line deduction for health 
and long-term care insurance expenses, an acceleration to 100 
percent of the self-employed health insurance deduction, a two-
year extension of the medical savings account program, and an 
additional personal deduction to caretakers of family members.

j. Taxpayer Bill of Rights 2000

    On April 4, 2000, Rep. Amo Houghton introduced H.R. 4163, 
the Taxpayer Bill of Rights 2000. On April 5, 2000, the 
Committee marked up H.R. 4163 (H. Rept. 106-566). The House 
subsequently passed, under suspension of the rules, H.R. 4163, 
on April 11, 2000.
    In summary, H.R. 4163 would convert the present-law penalty 
for failure to pay estimated tax into an interest provision; 
increase the threshold for underpayment of estimated tax from 
$1,000 to $2,000; simplify estimated tax calculations; exclude 
from gross income interest that is paid by the Internal Revenue 
Service (IRS) to individual taxpayers on overpayments of 
Federal income tax.
    The bill would repeal the present-law penalty for failure 
to pay tax for taxpayers who have entered into installment 
agreements; reduce the failure to pay tax penalty for all other 
taxpayers who have not entered into installment agreements; 
expand the circumstances in which interest on an underpayment 
of tax may be abated; and allow taxpayers to limit their 
exposure to underpayment interest through the use of a 
qualified reserve account. In the case of an individual 
taxpayer, the interest netting rules would be applied without 
regard to the 45-day period in which the Secretary of the 
Treasury may refund an overpayment of tax without the payment 
of interest under section 6611(e).
    The bill would require the IRS to disclose all advice or 
instructions issued to IRS or Chief Counsel employees that 
convey: (1) a legal interpretation of a revenue provision, (2) 
an IRS or Chief Counsel policy concerning a revenue provision, 
or (3) a legal interpretation of State law, foreign law, or 
other Federal law relating to the assessment or collection of 
any liability under a revenue provision.
    The bill would require that a State conduct annual on-site 
reviews of all of its contractors receiving Federal returns and 
return information as agents of the State tax administration 
agency to assess the contractors' efforts to safeguard Federal 
returns and return information. The bill would impose higher 
standards to protect taxpayers when they are requested to 
disclose tax return information, such as on a mortgage 
application. The bill includes provisions to prevent taxpayers 
from being coerced into signing incomplete disclosure forms.

k. Right-To-Know National Payroll Act

    On July 18, 2000, the House passed under suspension of the 
rules H.R. 1264. The bill would have required that employers 
show on IRS form W-2 for each employeethe employer's share of 
taxes for old-age, survivors, and disability insurance and for hospital 
insurance for the employee as well as the total amount of such taxes 
for the employee.

                       4. ADDITIONAL TAX MATTERS

a. Federal Retirement Coverage Corrections Act

    On February 11, 1999, the Committee marked up H.R. 416, the 
``Federal Retirement Coverage Corrections Act.'' The reported 
bill provided rules for the correction of certain retirement 
coverage errors affecting Federal employees, including several 
tax provisions. The bill provided that Federal retirement plans 
would not fail to be treated as qualified retirement plans, 
that no amounts would be includible in the income of any 
individual, and that no amounts would be subject to employment 
taxes, because of transfers made pursuant to the bill. However, 
the House-passed version of H.R. 416 did not contain any tax 
provisions. For a history of the bill, refer to section I.D.1., 
below.

b. Sunset of Internal Revenue Code

    On March 9, 2000, Representative Largent introduced H.R. 
4199, the ``Date Certain Tax Code Replacement Act.'' On April 
13, 2000, the House passed H.R. 4199. No further action taken.
    In summary, H.R. 4199 would have repealed, effective 
January 1, 2005, the Internal Revenue Code of 1986 (other than 
chapters 2, 21, and 22) and created a National Commission on 
Tax Reform and Simplification to recommend a replacement tax 
regime.

c. Hearings on Corporate Tax Shelters

    On November 10, 1999, the Committee held hearings on issues 
relating to corporate tax shelters.

d. Hearings on Fundamental Tax Reform

    On April 11, 12, and 13, 2000, the Committee held hearings 
on fundamental tax reform.

e. Hearings on JCT Disclosure Study

    On February 3, 2000, the Committee requested written 
comments on the Joint Committee on Taxation's Study of Present-
Law Taxpayer Confidentiality and Disclosure Provisions mandated 
by the Internal Revenue Service Restructuring and Reform Act of 
1998. Those comments are included in WMCP: 106-11.

                 B. Legislative Review of Trade Issues


                      1. MULTILATERAL TRADE ISSUES

a. Hearings on the Importance of Trade Negotiations in Expanding Trade 
        and Resisting Protectionism

    On February 11, 1999, and March 4, 1999, the Subcommittee 
held hearings on the Importance of Trade Negotiations in 
Expanding Trade and Resisting Protectionism, which addressed 
the content and strategy of trade negotiations in which the 
United States is participating, including negotiations on the 
Free Trade Area of the Americas (FTAA) and the Transatlantic 
Economic Partnership (TEP) and in the Asia Pacific Economic 
Cooperation Forum (APEC) and the World Trade Organization 
(WTO). The Subcommittee analyzed the relationship of these 
negotiations to trade negotiating authority and whether the 
United States is disadvantaged by not having such authority in 
place.

b. World Trade Organization

            i. Seattle Ministerial Meeting
    On August 5, 1999, the Subcommittee held a hearing on 
United States negotiating objectives for the WTO Ministerial 
Meeting, which would be hosted by the United States in Seattle 
in November 1999. In addition, the Subcommittee held a number 
of consultations with Ambassador Charlene Barshefsky, United 
States Trade Representative, throughout 1999 regarding the 
development of negotiating positions for the meeting.
    From November 30-December 3, 1999, Chairman Crane led a 
Ways and Means Committee delegation of 20 Members to attend the 
meeting. In Seattle, the Delegation discussed WTO issues with 
delegations from other WTO member countries, including the 
European Union, Australia, Canada, Mexico, India, and countries 
seeking to accede to the WTO such as China and Taiwan (WMCP 
106-10). The delegation also met with U.S. environmental 
groups.
    The Subcommittee also requested that the GAO conduct a 
study on the preparations for the meeting, attend the meeting, 
and analyze the outcome (GAO/T-NSIAD-00-86). On February 8, 
2000, the Subcommittee held a hearing on the outcome the WTO 
Ministerial Meeting.
    On November 4, 1999, prior to the Seattle Ministerial, the 
House defeated a motion which would have made in order 
consideration of a resolution calling on the President to 
abstain from renegotiating international agreements governing 
antidumping and countervailing duty measures and from 
participating in any international negotiation in which 
antidumping or countervailing duty rules are part of the 
negotiating agenda. See also discussion on Antidumping and 
Countervailing Duty Laws.
            ii. Carousel Retaliation
    On the subject of effective operation of the WTO dispute 
settlement mechanism and lack of compliance with WTO panel 
decisions, particularly in cases brought by the United States 
in disputes with the European Union involving bananas and beef, 
the Committee met several times with United States Trade 
Representative Charlene Barshefsky. On September 22, 1999, 
Senator DeWine introduced S. 1619 to amend sections 301-310 of 
the Trade Act of 1974 to require the United States Trade 
Representative (USTR) to make periodic revisions of retaliation 
lists 120 days from the date the retaliation list is made and 
every 180 days thereafter. A similar bill, H.R. 2991, was 
introduced in the House on October 1, 1999 by Representatives 
Combest, Portman, Thomas, Camp and several other Members. The 
purpose of these bills was to facilitate efforts by the USTR to 
enforce rights of the United States if another WTO member fails 
to comply with the results of a dispute settlement proceeding. 
An amended version of S. 1619 was included in Section 407 of 
the Trade and Development Act of 2000 (P.L. 106-200).
    On October 23, 2000, Chairman Archer sent a letter to 
Chairman Young objecting to including in any appropriations 
bill a provision concerning the imposition of retaliatory 
measures under section 301 of the Trade Act of 1974, as 
amended. He insisted, on jurisdictional grounds, that such 
revenue provisions be excluded from any final appropriations 
conference report because they would violate the prerogatives 
of the House to originate such measures. No provision was 
included in any legislation in the 106th Congress.
            iii. Resolution Concerning U.S. Participation in WTO
    Sections 124-125 of the Uruguay Round Agreements Act (URAA) 
(P.L. 103-465) require the President to submit a special report 
on U.S. participation in the WTO every five years from the date 
the United States first joined the WTO. Congress received the 
first of these five-year reports on March 2, 2000. Submission 
of the report triggers an opportunity for any Member of either 
House of Congress to introduce a motion to withdraw 
Congressional approval of the WTO Agreements. Such a resolution 
would be considered under expedited procedures. On March 6, 
2000, pursuant to section 124-125 of the URAA, Rep. Ron Paul 
(R-TX) introduced H.J. Res. 90, which would withdraw the 
approval of the United States from the agreements establishing 
the WTO.
    On March 30, 2000, the Committee on Ways and Means held a 
hearing to review future prospects for U.S. participation in 
the WTO. The Committee received testimony from Members of 
Congress, the Governor of Minnesota, a former United States 
Trade Representative, and representatives of the U.S. private 
sector.
    On June 8, 2000, the Committee on Ways and Means ordered 
H.J. Res. 90 reported adversely by a vote of 35-0 (H. Rept. 
106-672).
    On June 21, 2000, H.J. Res. 90 was defeated in the House by 
a vote of 56-363. No action was taken in the Senate.
            iv. Foreign Sales Corporation
    On February 24, 2000, a WTO Appellate Body, over the 
objections of the United States, upheld the finding of a WTO 
dispute settlement panel that had found that the Foreign Sales 
Corporation (FSC) provisions of sections 921 through 927 of the 
Internal Revenue Code constitute a prohibited export subsidy 
under the WTO Agreement on Subsidies and Countervailing 
Measures and under the Agreement on Agriculture. The Panel 
specified that FSC subsidies must be withdrawn at the latest 
with effect from October 1, 2000. On September 30, 2000, the 
United States and the European Union reached agreement on an 
extension of the compliance period from October 1 to November 1 
to allow Congress to complete passage of legislation to comply 
with the WTO ruling. H.R. 4986, to amend the Internal Revenue 
Code of 1986 to repeal the provisions relating to foreign sales 
corporations (FSCs) and to exclude extraterritorial income from 
gross income, was signed into law on November 16, 2000. (See 
tax section for description of the legislative history of H.R. 
4986.)
            v. Agricultural Negotiating Objectives
    Section 409 of the Trade and Development Act of 2000 (P.L. 
106-200) contains specific agricultural negotiating objectives 
of the United States for the World Trade Organization's 
negotiations on agriculture mandated by the Uruguay Round Trade 
Agreements. Section 409 also mandates consultations with 
Congress at specific points during the negotiations.
            vi. GAO Studies
    On April 5, 2000, the Subcommittee received a GAO study, 
requested by Chairman Crane, on the number and types of small- 
and medium-sized companies that export goods, and the nature 
and value of such goods (GAO/NSIAD-00-57R). Thereport aided the 
Subcommittee in assessing the importance of achieving further trade 
liberalization for these businesses through a new round of trade 
negotiations.
    In March 2000, the Subcommittee received a GAO study, 
requested by Chairman Archer, concerning efforts by the U.S. 
government to monitor and enforce existing trade agreements 
(GAO/NSIAD-00-76). In June 2000, and August 2000, the 
Subcommittee received the following two GAO studies, requested 
by Chairman Archer: U.S. Experience to Date in Dispute 
Settlement System (GAO/NSIAD/OGC-00-196BR) and Issues in 
Dispute Settlement (GAO/NSIAD-00-210).

                      2. BILATERAL TRADE RELATIONS

a. Trade Relations with sub-Saharan Africa

    Section 134 of the Uruguay Round Agreements Act (P.L. 103-
465) requires the President to produce a comprehensive trade 
and development policy for the countries of Africa. The fourth 
of the President's five annual reports was submitted to 
Congress on January 15, 1999. The President's report indicated 
the Administration's support for the passage of the African 
Growth and Opportunity Act, which had been introduced and 
passed by the House in the 105th Congress but did not become 
public law. The report laid out the key policy objectives of 
the President's ``Partnership for Economic Growth and 
Opportunity in Africa'' for stimulating economic growth in sub-
Saharan Africa and facilitating the region's integration into 
the global economy.
    On February 2, 1999, H.R. 434, the African Growth and 
Opportunity Act, was introduced by Subcommittee Chairman Crane 
and Representatives Rangel, Matsui, Thomas, Shaw, Levin, 
Johnson (CT), Houghton, McDermott, McNulty, Neal, Jefferson, 
Ramstad, Dunn, Portman, English, et alia to authorize a new 
trade and investment policy for sub-Saharan Africa. The bill 
authorized the extension of trade and other benefits to 
countries in sub-Saharan Africa that met certain market-based 
economic reform eligibility criteria. With respect to trade 
benefits, H.R. 434 offered eligible countries in sub-Saharan 
Africa enhanced benefits under the Generalized System of 
Preferences (GSP). In addition, the legislation 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 participating 
countries. The bill also established as a policy objective the 
creation of a United States-Sub-Saharan Africa Free Trade Area 
and expressed Congressional support for the creation of a 
position of Assistant United States Trade Representative for 
African Affairs. H.R. 434 was referred to the Committee on 
International Relations, and in addition to the Committees on 
Ways and Means, and Banking and Financial Services.
    On February 3, 1999, the Subcommittee on Trade held a 
hearing on H.R. 434 and on ways to develop closer trade 
relations with countries in sub-Saharan Africa. Testimony was 
received from Members of Congress, the Secretary of Commerce, 
representatives of sub-Saharan African governments, and 
representatives of the U.S. private sector (WMCP 106-64). Later 
that day, the Subcommittee on Trade ordered H.R. 434 favorably 
reported to the Committee on Ways and Means without amendment 
by a vote of 14-0.
    On February 11, 1999, the Committee on International 
Relations ordered H.R. 434 favorably reported out of Committee 
(H. Rept. 106-19, Part I).
    The Committee on Ways and Means marked up H.R. 434 on June 
10, 1999, and favorably reported the bill to the House by a 
voice vote (H. Rept. 106-19, Part II) with an amendment to 
incorporate revenue offsets into the bill.
    On June 17, 1999, the Committee on Banking and Financial 
Services was discharged from further consideration of H.R. 434.
    H.R. 434 was passed by the House of Representatives on July 
16, 1999, by a vote of 234 to 163, with two amendments related 
to HIV/AIDS in sub-Saharan Africa and an amendment on the 
development of linkages between small businesses in the United 
States and sub-Saharan Africa.
    On June 22, 1999, the Senate Committee on Finance 
considered legislation titled ``The African Growth and 
Opportunity Act.'' The provisions in the version marked up by 
the Committee on Finance differed from the trade provisions in 
the House-passed version of H.R. 434. The Finance Committee 
draft extended duty free and quota free benefits only to 
apparel made from fabric of U.S. origin. On July 16, 1999, 
Senator Roth introduced this draft text as S. 1387. On July 20, 
1999, the Committee on Finance filed S. Rept. 106-112 on S. 
1387.
    On November 3, 1999, the Senate passed H.R. 434, as 
amended, by a vote of 76 to 19. During Senate consideration of 
the bill, the House-passed version of the African Growth and 
Opportunity Act was replaced with the text of S. 1387. In 
addition, the Senate adopted amendments related to HIV/AIDS, 
debt relief, anticorruption efforts, desertification, and 
improving agricultural practices in sub-Saharan Africa, as well 
as a number of amendments unrelated to Africa. After passage of 
the bill, the Senate appointed Senators Roth, Grassley, Lott, 
Helms, Moynihan, Baucus, and Biden as conferees on H.R. 434.
    On January 21, 2000, the President submitted his fifth and 
final report pursuant to section 134 of the Uruguay Round 
Agreements Act (P.L. 103-465). The President's report 
reiterated the Administration's support for enactment of the 
African Growth and Opportunity Act. In addition, it described 
the ways that U.S. Government agencies work to support economic 
reform in sub-Saharan Africa, enhance U.S.-sub-SaharanAfrica 
economic engagement, increase African integration into the multilateral 
trading system, and promote sustainable economic development.
    On May 3, 2000, the Speaker appointed Representatives 
Gilman, Royce, Gejdenson, Archer, Crane, Rangel, Houghton, and 
Hoeffel to serve as conferees on H.R. 434.
    On May 4, 2000, the conference report on H.R. 434 was filed 
(H. Rept. 106-606). The conference agreement tracks the House 
and Senate-passed versions of the bill extending regular and 
enhanced GSP benefits through September 30, 2008, to countries 
in sub-Saharan Africa pursuing market-based economic reform and 
which meet the eligibility criteria of the GSP program, 
including a new criterion relating to the elimination of the 
worst forms of child labor (See discussion on Generalized 
System of Preferences). In addition, the conference agreement 
includes provisions establishing a United States-Sub-Saharan 
Africa Trade and Economic Cooperation Forum and setting as a 
policy objective the creation of a United States-Sub-Saharan 
Africa Free Trade Area. The conference agreement also contains 
the provision from the House bill expressing Congressional 
support for the creation of a position of Assistant United 
States Trade Representative for African Affairs. In addition, 
the conference report contains most of the amendments adopted 
during House and Senate floor consideration on HIV/AIDS, small 
business linkages, debt relief, anticorruption efforts, 
desertification, and improving agricultural practices in sub-
Saharan Africa. On apparel trade, the conference agreement 
grants duty-free and quota-free treatment through September 30, 
2008 to apparel articles from eligible countries made with U.S. 
fabrics, or fabrics and yarns not available in the United 
States, certain knit-to-shape sweaters, and folklore articles. 
In addition, the conference agreement extends duty-free and 
quota-free treatment for apparel articles wholly assembled in 
sub-Saharan Africa from regional fabric subject to quantitative 
limitations. In the first year of the legislation, the cap is 
set at 1.5 percent of U.S. apparel imports, rising to 3.5 
percent in equal annual increments through September 30, 2008. 
Within this cap, eligible countries with per capita incomes 
less than $1,500 are granted duty-free treatment on apparel 
articles wholly assembled from fabric produced outside of the 
region until September 30, 2004. The conference agreement also 
contains a number of provisions unrelated to the Africa 
legislation including parity for countries of the Caribbean 
Basin, as described elsewhere in this report.
    The House passed the conference report on H.R. 434 by a 
vote of 309 to 110 on May 4, 2000. The Senate passed the 
conference report by a vote of 77 to 19 on May 11, 2000. The 
bill was signed into law by the President on May 18, 2000 (P.L. 
106-200).
    Pursuant to the provisions of P.L. 106-200, the President 
issued Proclamation 7350 on October 2, 2000, designating 
countries in sub-Saharan Africa eligible to receive benefits 
under the African Growth and Opportunity Act.

b. Trade relations with Albania, including Normal Trade Relations

    Albania first received conditional normal trade relations 
from the United States in 1992 under a Presidential waiver from 
the freedom of emigration requirements in Title IV of the Trade 
Act of 1974 (the Jackson-Vanik amendment). In 1997, Albania was 
found to be in full compliance with the Jackson-Vanik 
requirements, but its trade status remained subject to annual 
compliance reviews.
    On February 2, 1999, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Albania with the freedom of emigration requirements in the 
Jackson-Vanik amendment (House Document 106-16).
    On September 29, 1999, Senator Lautenberg introduced 
legislation, S. 1657, which would authorize the President to 
determine that the Jackson-Vanik amendment should no longer 
apply to Albania and to extend nondiscriminatory treatment 
(normal trade relations treatment) to that country. S. 1657 was 
referred to the Senate Committee on Finance.
    On October 4, 1999, the Subcommittee on Trade issued a 
request for written public comment on the extension of 
unconditional normal trade relations to Albania. In response, 
the Subcommittee received comments in support of the extension 
of unconditional normal trade relations to Albania and none in 
opposition to it (WMCP 106-7).
    On November 3, 1999, the Senate adopted the text of S. 1657 
as an amendment to H.R. 434, the African Growth and Opportunity 
Act. H.R. 434 was passed by the Senate later that day by a vote 
of 76-19.
    On February 9, 2000, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Albania with the freedom of emigration requirements in the 
Jackson-Vanik amendment (House Document 106-195).
    The conference committee on H.R. 434 filed a report on the 
conference agreement on H.R. 434 on May 4, 2000 (H. Rept. 106-
606). The conference agreement included the Senate amendment on 
the extension of unconditional normal trade relations to 
Albania. Later that day, the House passed the conference report 
by a vote of 309-110. On May 11, 2000, the Senate passed the 
conference report by a vote of 77-19. The bill was signed into 
law by the President on May 18, 2000 (P.L. 106-200).
    Pursuant to the provisions of P.L. 106-200, the President 
issued Proclamation7326 on June 29, 2000 determining that title 
IV of the Trade Act of 1974 should no longer apply to Albania and 
declaring the extension of nondiscriminatory treatment to the products 
of that country.

c. Trade Relations with Armenia, including Normal Trade Relations

    Armenia first received conditional normal trade relations 
from the United States in 1992 under a Presidential waiver from 
the freedom of emigration requirements in Title IV of the Trade 
Act of 1974 (the Jackson-Vanik amendment). In 1997, Armenia was 
found to be in full compliance with the Jackson-Vanik 
requirements, but its trade status remained subject to annual 
compliance reviews.
    On December 28, 1998, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Armenia with the freedom of emigration requirements in the 
Jackson-Vanik amendment (House Document 106-5).
    On October 4, 1999, the Subcommittee on Trade issued a 
request for written public comment on the extension of 
unconditional normal trade relations to Armenia. In response, 
the Subcommittee received several comments, most in support of 
the extension of unconditional normal trade relations to 
Armenia (WMCP 106-7).
    On July 2, 1999, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Armenia with the freedom of emigration requirements in the 
Jackson-Vanik amendment (No House Document Number).
    On January 7 and June 30, 2000, the President submitted 
additional reports to Congress, as required by law, on the 
continued compliance of Armenia with the freedom of emigration 
requirements in the Jackson-Vanik amendment (House Documents 
106-164 and 106-265).
    No further action was taken during the 106th Congress.

d. Trade Relations with Caribbean Basin Countries

    On March 4, 1999, Chairman Crane and Representatives 
Rangel, Matsui, and Kolbe introduced H.R. 984, the Caribbean 
and Central American Relief and Economic Stabilization Act, 
which would grant NAFTA parity to nations in the Caribbean 
Basin. Title I of 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 (3) encourage the 
participation of these countries in the Free Trade Area of the 
Americas. On March 23, 1999, the Subcommittee held a hearing on 
H.R. 984. The Subcommittee approved H.R. 984 by voice vote on 
May 18, 1999. The Ways and Means Committee approved H.R. 984, 
as amended, by voice vote on June 10, 1999. The bill was 
sequentially referred to the Committee on International 
Relations, the Committee on Banking and Financial Services, the 
Committee on Judiciary, and the Committee on Armed Services. No 
further action on H.R. 984 was taken in the House.
    On June 22, 1999, the Senate Committee on Finance 
considered draft legislation reported titled the ``United 
States-Caribbean Basin Trade Enhancement Act.'' The provisions 
in the version marked up by the Committee on Finance differed 
from the trade provisions in H.R. 984, as approved by the 
Committee on Ways and Means, by requiring that imports of 
apparel products from the Caribbean Basin region qualifying for 
duty free and quota free entry be made of fabric of U.S. 
origin. On July 16, 1999, Senator Roth introduced the draft 
text as S. 1389. On July 16, 2000, the Committee on Finance 
filed its report on S. 1389 (S. Rept. 106-160).
    On November 3, 1999, the Senate passed H.R. 434, the 
``African Growth and Opportunity Act,'' as amended, by a vote 
of 76-19. During Senate consideration of the bill, the text of 
S. 1389 was added as an amendment. After passage of the bill, 
the Senate appointed Senators Roth, Grassley, Lott, Helms, 
Moynihan, Baucus, and Biden as conferees on H.R. 434. On May 3, 
2000, the Speaker appointed Representatives Gilman, Royce, 
Gejdenson, Archer, Crane, Rangel, Houghton, and Hoeffel to 
serve as conferees.
    On May 4, 2000, the conference report on H.R. 434 was filed 
(H. Rept. 106-606). The conference agreement builds on the 
Caribbean Basin Economic Recovery Act enacted in 1984 and 
extends additional trade benefits through 2008. It extends 
duty-free benefits to: (1) apparel made in the Caribbean Basin 
from U.S. yarn and fabric; (2) knit apparel made in CBI from 
regional fabric made with U.S. yarn and to knit-to-shape 
apparel (except socks), up to a cap of 250 million square meter 
equivalents, with a growth rate of 16 percent per year for 
first three years; and (3) an additional category of regional 
knit apparel products up to a cap of 4.2 million dozen, growing 
16 percent per year for the first three years. Benefits under 
the Caribbean Basin Trade Partnership Act are conditioned on 
countries meeting certain eligibility criteria including 
intellectual property protection, investment protection, 
improved market access for U.S. exports, the extent to which 
the country provides internationally recognized worker rights, 
and whether a country has implemented its commitments to 
eliminate the worst forms of child labor. See discussion on the 
Generalized System of Preferences. The bill requires that 
eligible countries implement Customs procedures to guard 
against transshipment. Under a ``one strike and you are out'' 
provision, if an exporter is determined to have engaged in 
illegal transshipment of textile and apparel products from a 
CBI country, the President is required to deny all benefits 
under the bill to that exporter for a period of two years.
    The House passed the conference report on H.R. 434 by a 
vote of 309-110 on May 4, 2000. The Senate passed the 
conference report by a vote of 77-19 on May 11, 2000. The bill 
was signed into law by the President on May 18, 2000 (P.L. 106-
2000).

e. Trade Relations with the People's Republic of China, including 
        Normal Trade Relations

    On June 3, 1999, 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 normal trade relations (NTR) treatment to 
China between July 1, 1999 and June 30, 2000. On June 7, 1999, 
Representative Rohrabacher introduced H.J. Res. 57, a joint 
resolution disapproving the President's waiver with respect to 
the People's Republic of China. The effect of this resolution 
would have been to withdraw NTR benefits from Chinese products. 
The Subcommittee examined the President's annual determination 
to renew China's NTR status in 1999 with a hearing on June 8, 
1999. On July 1, 1999, the Committee reported H.J. Res. 57 
adversely by voice vote. On July 26, 1999, the Committee 
reported H.J. Res. 57 adversely to the House without amendment 
by voice vote (H. Rept. 106-262). On July 27, 1999, H.J. Res. 
57 failed in the House by a vote of 170-260.
    On February 16, 2000, the Ways and Means Committee held a 
hearing focusing on: (1) the opportunities and issues 
associated with the entry of China into the WTO; and (2) the 
potential benefits of the U.S.-China bilateral trade agreement 
for U.S. firms, workers, farmers, ranchers, and other 
interested parties. The Committee also received testimony on 
how progress of China's accession to the WTO affects the 
pending application of Taiwan to join the WTO and the potential 
impact on the United States, China, Taiwan, and Hong Kong of 
normalized trade relations between the United States and China. 
Testimony was received from Members of Congress, the 
Administration, and representatives of business, labor, 
agricultural, and human rights organizations.
    On March 8, 2000, President Clinton transmitted to Congress 
a request for legislation to authorize the termination of the 
application of Title IV of the Trade Act of 1974 to China and 
to extend permanent Normal Trade Relations treatment to 
products from China if the President certifies that China is 
acceding to the WTO on terms no less favorable than the 
agreement negotiated between the United States and China in 
November of 1999.
    On March 23, 2000, Senator William Roth introduced S. 2277, 
to terminate the application of Title IV of the Trade Act of 
1974 with respect to the People's Republic of China. The bill 
was referred to the Committee on Finance. On May 17, 2000, the 
Finance Committee ordered S. 2277 to be reported favorably 
without amendment by a vote of 19-1 (S. Rept. 106-305).
    On May 3, 2000, the Ways and Means Committee held a second 
hearing on the bilateral trade agreement between the U.S. and 
China and the pending accession of China to the World Trade 
Organization (WTO). The focus of the hearing was to examine: 
(1) the opportunities and issues associated with the entry of 
China into the WTO; (2) the potential benefits of the U.S.-
China bilateral trade agreement for U.S. firms, workers, 
farmers, ranchers, and other interested parties; and (3) the 
current status of negotiations in Geneva for China to accede to 
the WTO. The Committee also received testimony on how 
normalizing trade relations with China would affect other U.S. 
objectives in China and the surrounding region, such as 
improved respect for human rights, progress toward 
democratization, and enhanced economic and regional security. 
Testimony was received from current and former Cabinet Members, 
a Member of Congress, the U.S. Trade Representative, the 
Commissioner of the U.S. Commission on International Religious 
Freedom, and various U.S. private sector witnesses.
    On May 15, 2000, Chairman Archer introduced H.R. 4444, to 
authorize extension of nondiscriminatory treatment (normal 
trade relations treatment) to the People's Republic of China. 
As introduced, the bill would grant the President the authority 
to determine that Title IV of the Trade Act should no longer 
apply to the People's Republic of China if he transmits a 
report to Congress certifying that the terms and conditions for 
accession of China to the WTO are at least equivalent to those 
agreed to in the November 15, 1999 bilateral agreement between 
the United States and China.
    On May 17, 2000, the Ways and Means Committee reported H.R. 
4444 to the House with one amendment by a vote of 34-4. The 
amended bill included a provision codifying the import surge 
mechanism negotiated as part of the 1999 U.S.-China bilateral 
agreement. Procedures for this new ``import surge mechanism'' 
are modeled after Section 406 of the Trade Act of 1974, as 
amended, with certain changes to conform to the requirements of 
the bilateral trade agreement. The legislation establishes 
clear standards for the application of Presidential discretion 
in providing relief to injured industries and workers. It also 
authorizes the President to provide a provisional safeguard in 
cases where ``delay would cause damage which it would be 
difficult to repair,'' as permitted under the United States-
China Agreement. It also implements a provision in the 
Agreement concerning trade diversion. (H. Rept. 106-632)
    When H.R. 4444 was considered in the House, the House 
adopted H. Res. 510, which provided for an amendment in the 
nature of a substitute to H.R. 4444. The amendment included the 
text of H.R. 4444, as reported from the Committee, and 
additional language establishing a Congressional-Executive 
Commission on China tofocus on monitoring human rights, 
including internationally recognized core labor standards and religious 
freedom. The legislation also included provisions that: (1) require 
USTR to submit an annual report on China's compliance with WTO 
obligations; (2) the United States will seek an annual review of 
China's compliance with its WTO obligations in the WTO as part of 
China's Protocol of Accession; (3) establish a task force on the 
prohibition on the importation of products of forced or prison labor; 
and (4) authorize additional resources for monitoring and enforcing 
China's compliance with trade agreements. The legislation also contains 
a sense of Congress that the accession of Taiwan and the People's 
Republic of China to the WTO should be considered at the same WTO 
General Council meeting. Finally, the legislation contains a number of 
other provisions not in the jurisdiction of the Committee, such as the 
authorization of funds to assist the development of rule of law and 
democracy in China.
    On May 24, 2000, Congressman Bonior moved to recommit the 
H.R. 4444, as amended, with instructions to the House Ways and 
Means and House International Relations subcommittees. The 
instructions in the motion required the bill to promptly be 
reported back to the House with an amendment adding a new 
section to provide the conditions under which withdrawal of 
normal trade relations with China could occur. Such conditions 
included situations in which China were to attack, invade, or 
impose a blockade on Taiwan. The motion failed by a recorded 
vote of 176-258. H.R. 4444, as amended, passed the House on 
June 24, 2000, by a vote of 237-197.
    On June 2, 2000, 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 NTR status between July 1, 2000 and June 
30, 2001. On June 23, 2000, H.J. Res. 103, a joint resolution 
disapproving the extension of NTR treatment to the People's 
Republic of China was introduced by Representative Rohrabacher. 
The effect of this resolution would have been to withdraw NTR 
benefits from Chinese products. On July 13, 2000, the Committee 
reported H.J. Res. 103 adversely to the House without amendment 
(H. Rept. 106-755) by voice vote. On July 18, 2000, H.J. Res. 
103 failed in the House by a vote of 147-281.
    The Senate considered H.R. 4444 from September 8 to 
September 19, 2000. The Senate approved H.R. 4444 on September 
19, 2000, by a vote of 83-15. The bill was signed into law by 
the President on October 10, 2000 (P.L. 106-286). The Ways and 
Means Committee continues to monitor the progress China is 
making in negotiations to join the WTO, which have not yet 
concluded.
    During the 106th Congress, the Committee on Ways and Means 
requested two studies on China from the General Accounting 
Office (GAO). In March 2000, the Committee received a report 
entitled ``China's Membership Status and Normal Trade Relations 
Issues,'' pursuant to an earlier request. On July 31, 2000, 
Chairman Archer joined Chairman Roth of the Senate Finance 
Committee in requesting GAO to assess China's fulfilment of its 
WTO obligations once it becomes a member of the WTO.

f. Trade Relations with Cuba

    On March 15, 2000, pursuant to section 332 of the Tariff 
Act of 1930, the Committee requested that the ITC conduct by 
February 2001 a study of the economic impact of U.S. sanctions 
with respect to Cuba. Specifically, the report will provide an 
overview of U.S. sanctions against Cuba, a description of the 
Cuban economy and Cuban trade and investment policies and 
trends, and an analysis of the historical impact of U.S. 
sanctions on both the U.S. and Cuban economies.
    Title VIII of the conference report on H.R. 4461, the 
Agriculture and Related Agencies Appropriations bill, contains 
the ``Trade Sanctions Reform and Export Enhancement Act of 
2000'' (H. Rept. 106-948). The provision lifts existing U.S. 
unilateral sanctions on agricultural and medical products, and 
establishes a framework to be applied to the imposition of any 
future U.S. unilateral agricultural and medical sanctions. In 
addition, the provision includes certain requirements 
associated with the sale of agricultural and medical products 
to Cuba. Section 809 of the provision contains language in the 
jurisdiction of the Ways and Means clarifying that nothing in 
the title shall be construed to change the U.S. embargo against 
imports from Cuba. The conference report on H.R. 4461 passed 
the House of Representatives by a vote of 340-75 on October 11, 
2000. The Senate passed the conference report on October 18, 
2000 by a vote of 86-8. H.R. 4461 was signed into law by the 
President on October 28, 2000 (P.L. 106-387).

g. Trade Relations with the European Union

    On February 11 and March 4, 1999, the Subcommittee held 
hearings on the Importance of Trade Negotiations in Expanding 
Trade and Resisting Protectionism. The hearings addressed the 
content and strategy of trade negotiations in which the United 
States is participating, including U.S./EU negotiations on the 
Transatlantic Economic Partnership and the Transatlantic 
Business Dialogue (WMCP 106-61). The Subcommittee also met with 
U.S. Trade Representative Charlene Barshefsky on a number of 
occasions to discuss U.S.-EU trade relations and EU compliance 
with WTO panel decisions. (See Multilateral Trade Issues.)
    On June 25, 1999, the President signed into law legislation 
exempting certain woven fabrics containing silk from country of 
origin marking under the appropriate statute. This legislation 
was part of H.R. 435, miscellaneous trade legislation for 1999 
(P.L. 106-36).
    On September 27, 2000, Chairman Crane requested that the 
GAO conduct areview of preferential trade programs offered by 
the European Union to developing countries in Africa, the Caribbean and 
the Pacific. The Chairman requested that GAO study how the programs 
work and whether they affect U.S. exports. The second part of this 
study will examine Europe's trade agreements with Central and Eastern 
European countries, European-Mediterranean association agreements, and 
Europe's trade agreements with South Africa and Mexico.
    See also discussion in WTO section concerning carousel 
retaliation.

h. Trade Relations with Georgia, including Normal Trade Relations

    Georgia first received conditional normal trade relations 
from the United States in 1992 under a Presidential waiver from 
the freedom of emigration requirements in the Jackson-Vanik 
amendment to the Trade Act of 1974. In 1997, Georgia was found 
to be in full compliance with the Jackson-Vanik requirements, 
but its trade status remained subject to annual compliance 
reviews.
    On December 28, 1998, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Georgia with the freedom of emigration requirements in the 
Jackson-Vanik amendment (House Document 106-5).
    On July 2, 1999, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Georgia with the freedom of emigration requirements in the 
Jackson-Vanik amendment (No House Document Number).
    On October 4, 1999, the Subcommittee on Trade issued a 
request for written public comment on the extension of 
unconditional normal trade relations to Georgia. In response, 
the Subcommittee received several comments, most in support of 
the extension of unconditional normal trade relations to 
Georgia (WMCP 106-7).
    On January 7, 2000, the President submitted an additional 
report to Congress, as required by law, on the continued 
compliance of Georgia with the freedom of emigration 
requirements in the Jackson-Vanik amendment (House Document 
106-164).
    On June 29, 2000, Subcommittee Chairman Crane introduced 
similar legislation on Georgia, H.R. 4782, which was referred 
to the Committee on Ways and Means.
    On June 30, 2000, the Subcommittee on Trade issued a 
request for written public comment on the extension of 
unconditional normal trade relations to Georgia. In response, 
the Subcommittee received comments in support of the extension 
of unconditional normal trade relations to Georgia and none in 
opposition to it. Also on June 30th, the President submitted 
another report to Congress on the continued compliance of 
Georgia with the freedom of emigration requirements in the 
Jackson-Vanik amendment (House Document 106-265).
    On September 19, 2000, the Senate Finance Committee ordered 
H.R. 4868, the ``Tariff Suspension and Trade Act of 2000,'' to 
be reported to the Senate with an amendment in the nature of a 
substitute including the text of H.R. 4782 on the extension of 
permanent normal trade relations to Georgia. The Senate Finance 
Committee reported H.R. 4868 with an amendment in the nature of 
a substitute without a report on September 27, 2000. On October 
12, 2000, the Senate Finance Committee filed a written report 
on H.R 4868 (S. Rept. 106-503). On October 13, 2000, the Senate 
passed H.R. 4868 by unanimous consent with the amendment in the 
nature of a substitute reported by the Senate Finance 
Committee.
    The House agreed to the Senate amendment on H.R. 4868 with 
an amendment pursuant to the provisions of H. Res. 644 on 
October 24, 2000, by a voice vote. The House amendment included 
the language on the extension of permanent normal trade 
relations to Georgia from the Senate amendment and added an 
additional finding related to the commitment of Georgia to 
strong and effective enforcement of internationally recognized 
core labor standards and to continue to improve enforcement of 
such standards.
    On October 26, 2000, the Senate agreed to the House 
amendment to the Senate amendment by unanimous consent.
    H.R. 4868 was signed into law by the President on November 
9, 2000 (P.L. 106-476).

i. Trade Relations with Japan

    In September 1999 the Subcommittee received a study from 
GAO, requested by Chairman Crane, to assess the implementation 
of the U.S.-Japan insurance agreements, as well monitoring and 
enforcement efforts by the U.S. government (GAO/NSIAD-99-
108BR).

j. Trade Relations with Kyrgyzstan, including Normal Trade Relations

    Kyrgyzstan first received conditional normal trade 
relations from the United States in 1992 under a Presidential 
waiver from the freedom of emigration requirements in the 
Jackson-Vanik amendment to the Trade Act of 1974. In 
1997,Kyrgyzstan was found to be in full compliance with the Jackson-
Vanik requirements, but its trade status remained subject to annual 
compliance reviews.
    On December 28, 1998, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Kyrgyzstan with the freedom of emigration requirements in the 
Jackson-Vanik amendment (House Document 106-5).
    On January 28, 1999, Senator Brownback et alia introduced 
S. 332, authorizing the President to determine that title IV of 
the Trade Act of 1974 (the Jackson-Vanik amendment) should no 
longer apply to Kyrgyzstan and to extend nondiscriminatory 
treatment (normal trade relations treatment) to that country.
    On May 12, 1999, the Subcommittee on Trade issued a request 
for written public comment on the extension of unconditional 
normal trade relations to Kyrgyzstan. In response, the 
Subcommittee received several comments, most in support of the 
extension of unconditional normal trade relations to Kyrgyzstan 
(WMCP 106-5).
    On July 2, 1999, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Kyrgyzstan with the freedom of emigration requirements in the 
Jackson-Vanik amendment (No House Document Number).
    On November 3, 1999, the Senate adopted the text of S. 332 
as an amendment to H.R. 434, the ``African Growth and 
Opportunity Act.'' H.R. 434 was passed by the Senate later that 
day by a vote of 76-19.
    On January 7, 2000, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Kyrgyzstan with the freedom of emigration requirements in the 
Jackson-Vanik amendment (House Document 106-164).
    The conference committee on H.R. 434 filed a report on the 
conference agreement on H.R. 434 on May 4, 2000 (H. Rept. 106-
606). The conference agreement included the Senate amendment on 
the extension of unconditional normal trade relations to 
Kyrgyzstan. Later that day, the House passed the conference 
report by a vote of 309-110. On May 11, 2000, the Senate passed 
the conference report by a vote of 77-19. The bill was signed 
into law by the President on May 18, 2000 (P.L. 106-200).
    Pursuant to the provisions of P.L. 106-200, the President 
issued Proclamation 7326 on June 29, 2000, determining that 
title IV of the Trade Act of 1974 should no longer apply to 
Kyrgyzstan and declaring the extension of nondiscriminatory 
treatment to the products of that country.

k. Trade Relations with the Lao People's Democratic Republic, including 
        Normal Trade Relations

    At present, ``Laos'' is listed in general note 3(b) of the 
Harmonized Tariff Schedule among those countries that are 
denied normal tariff treatment.
    On July 29, 1999, the Subcommittee on Trade issued a 
request for written public comment on the extension of normal 
trade relations to the products of the Lao People's Democratic 
Republic. In response, the Subcommittee received several 
comments both in support and opposition (WMCP 106-6).
    No further action was taken during the 106th Congress.

l. Trade Relations with Moldova, including Normal Trade Relations

    Moldova first received conditional normal trade relations 
from the United States in 1992 under a Presidential waiver from 
the freedom of emigration requirements in the Jackson-Vanik 
amendment to the Trade Act of 1974. In 1997, Moldova was found 
to be in full compliance with the Jackson-Vanik requirements, 
but its trade status remained subject to annual compliance 
reviews.
    On December 28, 1998, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Moldova with the freedom of emigration requirements in the 
Jackson-Vanik amendment (House Document 106-5).
    On October 4, 1999, the Subcommittee on Trade issued a 
request for written public comment on the extension of 
unconditional normal trade relations to Moldova. In response, 
the Subcommittee received several comments, most in support of 
the extension of unconditional normal trade relations to 
Moldova (WMCP 106-7).
    On July 2, 1999, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Moldova with the freedom of emigration requirements in the 
Jackson-Vanik amendment (No House Document Number).
    On January 7 and June 30, 2000, the President submitted 
additional reports to Congress, as required by law, on the 
continued compliance of Moldova with the freedom of emigration 
requirements in the Jackson-Vanik amendment to the Trade Act of 
1974 (House Documents 106-164 and 106-265).
    No further action was taken during the 106th Congress.

m. Trade Relations with Mongolia, including Normal Trade Relations

    Mongolia first received conditional normal trade relations 
from the United States in 1991 under a Presidential waiver from 
the freedom of emigration requirements in the Jackson-Vanik 
amendment to the Trade Act of 1974. In 1996, Mongolia was found 
to be in full compliance with the Jackson-Vanik requirements, 
but its trade status remained subject to annual compliance 
reviews.
    On February 2, 1999, Chairman Archer, Subcommittee Chairman 
Crane, and Representatives Rangel and Levin introduced H.R. 
435, the ``Miscellaneous Trade and Technical Corrections Act of 
1999.'' Among the provisions of this bill was language 
authorizing the President to determine that title IV of the 
Trade Act of 1974 (the Jackson-Vanik amendment) should no 
longer apply to Mongolia and to proclaim the extension of 
nondiscriminatory treatment (normal trade relations treatment) 
to that country. H.R. 435 was referred to the Committee on Ways 
and Means.
    On February 9, 1999, H.R. 435 was passed by the House under 
suspension of the rules by a vote of 414-1.
    On February 11, 1999, the President submitted a report to 
Congress, as required by law, on the continued compliance of 
Mongolia with the freedom of emigration requirements in the 
Jackson-Vanik amendment (House Document 106-19).
    On May 27, 1999, the Senate passed H.R. 435 by unanimous 
consent with an amendment in the nature of a substitute 
containing the provision on Mongolia. On June 7, 1999, the 
House agreed to the Senate amendment under suspension of the 
rules by a vote of 375-1. H.R. 435 was signed into law on June 
25, 1999 (P.L. 106-36).
    Pursuant to the provisions of P.L. 106-36, the President 
issued Proclamation 7207 on July 1, 1999, determining that 
title IV of the Trade Act of 1974 should no longer apply to 
Mongolia and declaring the extension of nondiscriminatory 
treatment to the products of that country.

n. Trade Relations with Vietnam

    Vietnam first received a Presidential waiver in 1998 from 
the freedom of emigration requirements in the Jackson-Vanik 
amendment to the Trade Act of 1974. However, because a 
bilateral trade agreement between the United States has not 
been transmitted and approved by Congress, Vietnam is 
ineligible under Title IV of the Trade Act of 1974 to receive 
normal trade relations from the United States. The practical 
effect of the Jackson-Vanik waiver is to make Vietnam eligible 
for 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.
    On June 3, 1999, the President transmitted a letter and 
report to Congress on the continuation of Vietnam's Jackson-
Vanik waiver for the next 12 month period (House Document 106-
78). The President issued the waiver on the basis that it would 
substantially promote achievement of the objectives in the 
statute.
    H.J. Res. 58 was introduced on June 9, 1999, by 
Representative Rohrabacher to disapprove the President's June 
3rd waiver determination for Vietnam. The resolution was 
referred to the Committee on Ways and Means.
    On June 17, 1999, the Subcommittee on Trade held a hearing 
on U.S.-Vietnam trade relations. At the hearing, testimony was 
received from Members of Congress, Administration and private 
sector witnesses, and representatives of POW/MIA families, 
veterans organizations, refugees, and Vietnamese-Americans 
(WMCP 106-20).
    On July 1, 1999, the Committee on Ways and Means reported 
H.J. Res. 58 adversely to the House of Representatives without 
amendment by a voice vote (H. Rept. 106-282).
    H.J. Res. 58 was defeated in the House by a vote of 130 to 
297 on August 3, 1999, thereby continuing Vietnam's Jackson-
Vanik waiver for the next year.
    On June 2, 2000, the President transmitted another letter 
and report to Congress on the continuation of Vietnam's 
Jackson-Vanik waiver for an additional 12 month period (House 
Document 106-252).
    On June 6, 2000, Representative Rohrabacher introduced H.J. 
Res. 99 to disapprove the President's June 2nd waiver 
determination for Vietnam. H.J. Res. 99 was referred to the 
Committee on Ways and Means.
    On June 15, 2000, the Subcommittee on Trade held a hearing 
on U.S.-Vietnam Trade Relations. Oral testimony was taken from 
a Member of Congress, and representatives of the 
Administration, business, refugee, and Vietnamese-American 
groups.
    The Committee on Ways and Means adversely reported H.J. 
Res. 99 by a voice vote to the House of Representatives without 
amendment on June 28, 2000 (H. Rept. 106-794).
    H.J. Res. 99 was defeated in the House by a vote of 91-332 
on July 26, 2000, thereby continuing Vietnam's Jackson-Vanik 
waiver for another year.

o. Unilateral Trade Sanctions

            i. ``Enhancement of Trade, Security, and Human Rights 
                    Through Sanctions Reform Act''
    On March 24, 1999, Subcommittee Chairman Crane, for himself 
and Chairman Archer, Representatives Rangel, Shaw, Johnson 
(CT), Houghton, Herger, McCrery, Ramstad, Dunn, Portman, 
English, Jefferson, Watkins, and a number of other cosponsors, 
introduced H.R. 1244, the ``Enhancement of Trade, Security, and 
Human Rights Through Sanctions Reform Act.'' The legislation 
would have established a framework for the consideration of 
future unilateral economic sanctions by the legislative and 
executive branches. In addition, H.R. 1244 would have amended 
the Arms Export Control Act to provide waiver authority to the 
President under the Glenn Amendment, the provision of law which 
prohibits a variety of assistance and commercial transactions 
outside of Ways and Means jurisdiction between the United 
States and a non-nuclear weapon country if the President 
determines that such a country has detonated a nuclear 
explosive device. H.R. 1244 was referred to the Committee on 
International Relations, and sequentially to the Committee on 
Ways and Means and the Committee on Banking and Financial 
Services.
    On May 27, 1999, the Subcommittee on Trade held a hearing 
on the use and effect of unilateral trade sanctions. The 
Subcommittee received testimony from Members of Congress, the 
Administration, and private sector witnesses.
    No further action was taken on H.R. 1244 in the 106th 
Congress.
            ii. India and Pakistan Sanctions
    In September 1999, the International Trade Commission 
submitted a report to the Committee on Ways and Means, 
requested by Chairman Archer, providing an overview and 
analysis of the economic impact of U.S. sanctions policy with 
respect to India and Pakistan (ITC Publication 3236). In 1998, 
the President imposed sanctions against India and Pakistan 
pursuant to the Glenn Amendment after both countries detonated 
nuclear explosive devices. Congress granted the President 
authority for one year to waive the application of U.S. 
sanctions against India and Pakistan through the enactment of 
the ``India-Pakistan Relief Act of 1998'' (P.L. 105-277). 
Subsequently, the conference agreement on H.R. 2561, the 
``Department of Defense Appropriations Act for Fiscal Year 
2000,'' included a provision authorizing the President to 
waive, without time limitation, all of the sanctions contained 
in the Arms Export Control Act with respect to India and 
Pakistan (P.L. 106-79).
            iii. Gum Arabic
    On May 20, 1999, Representative Menendez introduced H.R. 
1808 to exempt gum Arabic from the prohibition on imports of 
products from Sudan under Executive Order 13067. H.R. 1808 was 
referred to the Committee on Ways and Means and was included as 
part of H.R. 4868, the ``Miscellaneous Trade and Technical 
Corrections Act of 2000.''
    On July 25, 2000, the House passed H.R. 4868 under 
suspension of the rules. On October 13, 2000, the Senate passed 
H.R. 4868 by unanimous consent with an amendment in the nature 
of a substitute reported by the Senate Finance Committee that 
did not contain the House provision related to gum Arabic
    The House agreed to the Senate amendment on H.R. 4868 with 
an amendment by a voice vote on October 24, 2000, pursuant to 
the provisions of H. Res. 644, that included revised language 
on gum Arabic in section 1464. Specifically, the revised 
provision requires the Secretary of the Treasury and the 
Secretary of State to consider promptly any license 
applications by U.S. gum Arabic processors to import gum Arabic 
in raw form from Sudan, and to consider whether adequate 
commercial quantities of the highest grade of gum Arabic in raw 
form are available from countries other than Sudan in reviewing 
such future license applications. Finally, the provision 
requires the President to promote the development of 
alternative sources of the highest grade of gum Arabic in 
countries other than Sudan. (See discussion under Miscellaneous 
Trade Issues).
    On October 26, 2000, the Senate agreed to the House 
amendment to the Senate amendment by unanimous consent.
    H.R. 4868 was signed into law by the President on November 
9, 2000 (P.L. 106-476).
            iv. Cuba
    See earlier discussion on Cuba sanctions.

  3. OPERATIONS OF THE U.S. CUSTOMS SERVICE, THE INTERNATIONAL TRADE 
      COMMISSION, AND THE OFFICE OF THE U.S. TRADE REPRESENTATIVE

a. Budget Authorizations

    Chairman Crane held a hearing on April 13, 1999, on budget 
authorizations for the U.S. 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, the National Treasury Employees Union, and 
invited private sector witnesses testified at the hearing.
    At the hearing, the Subcommittee examined Customs 
automation issues--the Automated Commercial System (ACS), the 
Automated Commercial Environment (ACE), and the International 
Trade Data System (ITDS). In addition, the Subcommittee 
examined the impact of Customs rotation policies and collective 
bargaining agreements on Customs drug interdiction efforts.
    In addition to requesting appropriations for Customs base 
expenses and other funding for the Customs Service, the 
President's FY 2000 budget request included a fee in FY 2000 
for the use of Customs automation in order to fund the ACE and 
ITDS for FY 2001. According to the request, the fee would 
generate an amount of $150 million for ACE and $13 million for 
ITDS. The President's budget also proposed an increase in the 
passenger processing fee under the Consolidated Omnibus Budget 
Reconciliation Act of 1985 from $5 to $6.40 and removed the 
exemption for passengers arriving from Canada, Mexico, and the 
Caribbean.
    Prior to the hearing, on March 11, 1999, Chairman Crane 
sent two letters to David M. Walker, the Comptroller General of 
the United States, requesting that GAO evaluate the 
Administration's cost basis for the proposed access user fee, 
and the passenger processing fee. The Administration's proposed 
access fee did not provide sufficient information, and as a 
result, GAO stated that it was unable to make any definitive 
findings on this issue. (See Requests to GAO below).
    On May 18, 1999, Subcommittee Chairman Crane introduced 
H.R. 1833, authorizing appropriations for fiscal years 1999 and 
2000 for the Customs Service for non-commercial and commercial 
operations, and air and marine interdiction programs, as well 
as authorizations for the Office of the United States Trade 
Representative and the International Trade Commission. With 
respect to the Customs authorization for commercial operations, 
the legislation included funding for ACE ($150 million for FY 
2000 and 2001). In addition, H.R. 1833 included authorizations 
for prevention of on-line child pornography, incorporated 
substantially the authorization provisions concerning drug 
interdiction contained in H.R. 3809 of the 105th Congress, the 
``Drug Free Borders Act of 1999,'' introduced by Subcommittee 
Chairman Crane on May 7, 1998, and included provisions amending 
overtime and premium pay for Customs officers. H.R. 1833 was 
referred to the Committee on Ways and Means.
    The Trade Subcommittee marked up and favorably reported 
H.R. 1833 on May 18, 1999, as amended, by voice vote. On May 
20, 1999, the Committee on Ways and Means considered H.R.1833 
and ordered the bill favorably reported to the House, with an 
amendment, by a vote of 36-0 (H. Rept. 106-161). The 
Committee's amendment reflected a minor change in the 
authorization amounts for Customs' commercial and non-
commercial operations. On May 25, 1999, the House passed the 
bill under the suspension of the rules by vote of 410-2.
    H.R. 1833 was received in the Senate and referred to the 
Committee on Finance. On June 16, 1999, the Committee on 
Finance ordered the bill to be reported favorably with an 
amendment in the nature of a substitute. On July 20, 1999, the 
Committee filed S. Rept. 106-156 on H.R. 1833, as amended.
    The Senate amendment to H.R. 1833 struck authorizations for 
the ITC and USTR as well as the amendments to Customs overtime 
and premium pay. The Senate amendment included provisions that 
allowed for five-year fixed term and an increased salary level 
for the Commissioner of Customs, reports relating to best 
practices by Customs, personnel flexibility, implementation of 
personnel allocation mode, and detection and monitoring 
requirements along the Southern and Northern borders. Finally, 
the Senate amendment included a provision that established 
civil penalties for marking violations.
    The Senate agreed to H.R. 1833, as amended, by unanimous 
consent.
    No further action was taken on the legislation during the 
106th Congress.

b. Requests Submitted to the General Accounting Office (GAO)

    In a letter dated March 11, 1999, to Mr. David M. Walker, 
the Comptroller General of the United States, Chairman Crane 
requested that GAO examine the timeliness of the Customs Office 
of Regulations and Rulings (OR&R) in responding to ruling 
requests in all categories of rulings. GAO reported its 
findings in September 2000 (GAO/GGD-00-181), concluding that 
OR&R did not generally comply with itsown benchmark for 
timeliness and that the system used to track rulings and timeliness was 
not effective.
    In a letter dated March 11, 1999, Chairman Crane requested 
that GAO evaluate the Administration's cost basis for the 
President's proposal in his FY 2000 budget request to establish 
an access fee for the use of the Customs automation system. GAO 
informally reported that it was unable to make the 
determination because the available information was 
insufficient.
    The President's FY 2000 budget request also proposed an 
increase in the passenger processing fee under the Consolidated 
Omnibus Budget Reconciliation Act of 1985 from $5 to $6.40 and 
removed the exemption for passengers arriving from Canada, 
Mexico, and the Caribbean. In a letter dated March 11, 1999, 
Chairman Crane requested that GAO assess the reasonableness and 
cost basis Customs used to set conveyance and passenger related 
fees as well as the merchandise processing fee. In a report 
dated October 7, 1999, GAO reported that it could not 
accurately determine the cost basis for the merchandise 
processing fee because the information necessary to determine 
the relationship between the fee and the cost of services was 
not maintained in a manner that would allow that determination 
(GAO/GGD-00-21R). In another report dated February 29, 2000, 
GAO stated that it could not determine the reasonableness of 
costs for processing air and sea passengers because Customs 
could not provide adequate supporting documentation for the 
labor percentages estimates used to allocate those costs (GAO/
AIMD/GGD-00-94R).
    In a letter dated October 12, 1999, Chairmen Archer, Crane, 
and Roth requested that GAO review the design and 
implementation of the Customs self-inspection program to 
determine the extent to which it will achieve the 
accountability the Commissioner is seeking. GAO is expected to 
complete this report on June 29, 2001.

                  4. GENERALIZED SYSTEM OF PREFERENCES

    The reauthorization of the Generalized System of 
Preferences Program (GSP) was included in the conference report 
on H.R. 1180, the Ticket to Work and Work Incentives 
Improvement Act of 1999 (P.L. 106-170). Section 508 contains a 
provision to reauthorize the GSP program (Title V of the Trade 
Act of 1974) as amended, for two years through September 30, 
2001.
    The Africa Growth and Opportunity Act, signed into law by 
the President on May 18, 2000 (P.L. 106-200) extended regular 
and enhanced GSP benefits through September 30, 2008, for 
eligible countries in sub-Saharan Africa. In addition, section 
412 adds a new eligibility criterion to the Generalized System 
of Preferences so that the President shall not designate a 
country for benefits if it has not implemented its commitments 
to eliminate the worst forms of child labor. (See section on 
Bilateral Trade Relations: Trade Relations with sub-Saharan 
Africa.)

                     5. TRADE ADJUSTMENT ASSISTANCE

    On June 2, 1999, the Senate Committee on Finance ordered 
reported a draft bill reauthorizing through September 2, 2001, 
the Trade Adjustment Assistance (TAA) programs for workers and 
firms and the NAFTA-related TAA program, all of which were 
scheduled to expire on June 30, 1999. This draft bill was 
subsequently introduced by Senator Roth on July 16, 1999 as S. 
1386. On July 22, 2000, the Senate Finance Committee filed a 
report, S. Rept. 106-119, on S. 1386.
    During Senate consideration of H.R. 434, the ``African 
Growth and Opportunity Act,'' a number of amendments related to 
the TAA programs for workers and firms were adopted. These 
amendments were included in the version of H.R. 434 passed by 
the Senate on November 3, 1999 by a vote of 76-19. 
Specifically, section 401 of the Senate-passed amendment 
contained the text of S. 1386, reauthorizing all of the TAA 
programs through September 30, 2001. Section 402 of the Senate 
amendment would have changed the TAA eligibility criteria for 
textile and apparel workers to allow for certification of 
workers who lose their jobs as a result of a decrease in a 
firm's sales or production, or a plant closure or relocation. 
Section 601 of the Senate amendment proposed the creation of a 
TAA for Farmers program at the U.S. Department of Agriculture. 
Section 703 of the Senate amendment would have required the 
Comptroller General of the United States to submit a report to 
Congress on the efficiency and effectiveness of Federal and 
State coordination of employment and retraining activities 
associated with TAA, the Job Training Partnership Act, the 
Workforce Investment Act of 1998, and unemployment insurance. 
Section 704 of the Senate amendment provided that certain 
workers engaged in the decommissioning of a nuclear power plant 
who were covered by a TAA certification issued in 1993 would be 
eligible to apply for TAA benefits despite the expiration of 
their certification. Section 715 of the Senate amendment 
required the Secretary of Labor to submit a report to Congress 
on the applicability of TAA programs to agricultural commodity 
producers.
    Reauthorization through September 30, 2001, of the general 
TAA programs for workers and firms, as well as the NAFTA-
related TAA program was later included in the conference report 
to H.R. 3194, the Consolidated Appropriations Act of 1999 (H. 
Rept. 106-479). The conference report was passed by the House 
of Representatives on November 18, 1999 by a vote of 296-135, 
and by the Senate on the next day by a vote of 72-24. H.R. 3194 
was signed into law on November 29, 1999 (P.L. 106-113).
    On May 4, 2000, the conference report on H.R. 434, the 
Trade and Development Act of 2000, was filed (H. Rept. 106-
606). Section 401 of the conference agreement contained the 
Senate provision requiring the Comptroller General of the 
United States to submit a report to Congress on the efficiency 
and effectiveness of Federal and State coordination of 
employment and retraining activities associated with TAA, the 
Job Training Partnership Act, the Workforce Investment Act of 
1998, and unemployment insurance. Section 402 of the conference 
agreement contained the Senate provision providing that certain 
workers engaged in the decommissioning of a nuclear power plant 
who were covered by a TAA certification issued in 1993 are 
eligible to apply for TAA benefits despite the expiration of 
their certification. Section 408 of the conference agreement 
requires the Secretary of Labor to submit a report to Congress 
on the applicability of TAA programs to agricultural commodity 
producers. On May 4, 2000, the House of Representatives passed 
the conference report on H.R. 434 by a vote of 309-110. On May 
11, 2000, the Senate passed the conference report by a vote of 
77-19. The bill was signed into law by the President on May 18, 
2000 (P.L. 106-200).
    On October 26, 2000, the Secretary of Labor wrote to 
Chairman Archer to transmit a copy of the report required by 
section 408 of P.L. 106-200 on the applicability of TAA 
programs to agricultural commodity producers.
    On June 12, 2000, Representative Stupak introduced H.R. 
4641, providing that workers at a copper mining facility 
engaged in federally mandated environmental remediation 
associated with the mine's closure, who were covered by a TAA 
certification originally issued in 1995 would be eligible to 
apply for TAA benefits despite the expiration of their 
certification. H.R. 4641 was referred to the Committee on Ways 
and Means.
    The text of H.R. 4641 was incorporated as section 2001 of 
H.R. 4868, the ``Miscellaneous Trade and Technical Corrections 
Act of 2000,'' introduced by Subcommittee Chairman Crane on 
July 18, 2000. H.R. 4868 was referred to the Committee on Ways 
and Means.
    On July 19, 2000, the Committee on Ways and Means reported 
H.R. 4868 to the House by a voice vote (H. Rept. 106-789). The 
House passed H.R. 4868 under suspension of the rules by a vote 
of 411-0 on July 25, 2000.
    On September 19, 2000, the Senate Finance Committee ordered 
H.R. 4868 to be reported to the Senate with an amendment in the 
nature of a substitute, which included the House provision on 
the eligibility of certain copper mine workers for TAA 
benefits. The Senate Finance Committee reported this version of 
H.R. 4868 without a report on September 27, 2000. On October 
12, 2000, the Senate Finance Committee filed a written report 
on H.R. 4868 (S. Rept. 106-503). On October 13, 2000, the 
Senate passed H.R. 4868 by unanimous consent with the amendment 
in the nature of a substitute reported by the Senate Finance 
Committee.
    The House agreed to the Senate amendment on H.R. 4868 with 
a further amendment, and included the provision related the 
eligibility of certain copper mine workers for TAA benefits, 
pursuant to the provisions of H. Res. 644 on October 24, 2000 
by a voice vote. On October 26, 2000, the Senate agreed to the 
House amendment to the Senate amendment by unanimous consent.
    H.R. 4868 was signed into law by the President on November 
9, 2000 (P.L.106-476).

         6. LEGISLATION CONCERNING TRADE IN STEEL, OIL AND GAS

    Pursuant to the provisions of section 111 of P.L. 105-277, 
the ``Omnibus Appropriations Bill for Fiscal Year 1999,'' the 
President submitted a report to Congress on January 7, 1999 
entitled ``Comprehensive Plan for Responding to the Increase in 
Steel Imports.'' This report detailed the Administration's 
enforcement of U.S. trade laws, engagement of major steel 
exporting and importing countries to enforce fair trade, work 
with the International Monetary Fund (IMF) and other countries 
to address the Asian financial crisis which triggered an 
increase in U.S. steel imports, and efforts to provide American 
steel communities with the resources to adjust to 
globalization.
    On February 25, 1999, the Subcommittee on Trade held a 
hearing on steel trade issues. Testimony was taken from Members 
of Congress, the Administration, and private sector witnesses 
(Ways and Means Hearing 106-6).
    On March 4, 1999, Representative Visclosky et alia 
introduced H.R. 975, to direct the President to impose quotas, 
tariff surcharges, or negotiate enforceable voluntary export 
restraint agreements in order to ensure that the volume of 
imported steel products in the United States during any month 
does not exceed the average volume of imported steel for the 
36-month period preceding July 1997. In addition, H.R. 975 
proposed the creation of a steel import and monitoring program 
at the Department of Commerce. H.R. 975 was referred to the 
Committee on Ways and Means.
    On March 5, 1999, Chairman Archer received a letter from 
Speaker Hastert and Majority Leader Armey requesting that the 
Committee on Ways and Means consider and report unfavorably 
H.R. 975 in the next week.
    On March 15, 1999, the Committee on Ways and Means 
adversely reported H.R. 975 to the House by a voice vote 
without amendment (H. Rept. 106-52).
    The House passed H.R. 975 without amendment by a vote of 
289-141 on March 17, 1999.
    On June 22, 1999, the Senate cloture vote on the motion to 
proceed to the consideration of H.R. 975 failed by a vote of 
42-57.
    No further action was taken on H.R. 975 in the 106th 
Congress.
    On June 18, 1999, the Senate amended and passed H.R. 1664, 
the ``Emergency Steel Loan Guarantee and Emergency Oil and Gas 
Guarantee Loan Act of 1999,'' by a vote of 63-34. As passed by 
the Senate, the bill authorizes the establishment of an 
Emergency Steel Guarantee Loan Program for qualified steel 
companies that have experienced layoffs, production losses, or 
financial losses since the beginning of the steel import crisis 
in January 1998. The aggregate amount of loans guaranteed and 
outstanding at any one time under the steel program is capped 
at $1 billion. The Senate amendment to H.R. 1664, also 
established a similar program, the Emergency Oil and Gas 
Guarantee Loan Program, for qualified oil and gas companies 
that have experienced layoffs, production losses, or financial 
losses since the beginning of the oil import crisis after 
January 1, 1997. The aggregate amount of loans guaranteed and 
outstanding at any one time under the oil and gas program is 
capped at $500 million.
    On August 4, 1999, Mr. Regula moved that the House agree to 
the Senate amendments to H.R. 1664. The House agreed to the 
motion by a vote of 246-175, with 1 Member voting Present. H.R. 
1664 was signed into law by the President on August 17, 1999 
(P.L. 106-51).
    The conference report on H.R. 4577, the Consolidated 
Appropriations Act for Fiscal Year 2001, contained language in 
section 146 calling upon the President: 1) to take all 
appropriate action within his power to provide relief from 
injury caused by steel imports; and 2) to immediately request 
the U.S. International Trade Commission to commence an 
expedited investigation for positive adjustment under section 
201 of the Trade Act of 1974 of such steel imports (H. Rept. 
106-1033; Congressional Record, December 15, 2000, p. H12280).

  7. MISCELLANEOUS PROVISIONS IN THE TRADE AND DEVELOPMENT ACT OF 2000

    During Senate consideration of H.R. 434, the African Growth 
and Opportunity Act, several amendments related to various 
trade issues were adopted. These amendments were included in 
the version of H.R. 434 passed by the Senate on November 3, 
1999. Some of these amendments were included in the conference 
report on H.R. 434. See also the discussion on Africa, the 
Caribbean Basin, Albania and Kyrgyzstan contained in the 
discussion above on Bilateral Trade Issues.
    Specifically, section 403 of the conference report provides 
for reliquidation of certain nuclear fuel assemblies. Section 
710 adds the Senate Finance Committee and the House Committee 
on Ways and Means to the list of Committees to which the 
following reports are submitted: Reports Regarding Initiatives 
to Update the International Monetary Fund; Reports on Financial 
Stabilization Programs; Annual Report on the State of the 
International Financial System, IMF Reform, and Compliance with 
IMF Agreements; Audits of the IMF; and Reports on Protection of 
Borders Against Drug Trafficking. Section 405 clarifies section 
334 of the Uruguay Round Agreements Act. Section 406 
establishes within the Office of the United States Trade 
Representative (USTR) a Chief Agricultural Negotiator with the 
rank of Ambassador. Section 407 amends the Trade Act of 1974 to 
require USTR to make periodic revisions of retaliation lists 
120 days from the date the retaliation list is made and every 
180 days thereafter. Section 409 outlines the United States 
agricultural trade negotiating objectives within the World 
Trade Organization (WTO). Section 410 amends the Trade Act of 
1930 to allow for all merchandise withdrawn from a foreign 
trade zone during a week to be treated as a single entry 
billing for the purpose of assessing the merchandise processing 
fee. Section 411 clarifies the ban on articles made with forced 
or/and indentured labor includes those articles made with 
forced or/and indentured child labor. Section 412 adds a new 
eligibility criterion to the Generalized System of Preferences 
so that the President shall not designate a country for 
benefits if it has not implemented its obligations to eliminate 
the worst forms of child labor. Title V of the conference 
report reduces tariffs on high end worsted wool fabric intended 
for use in the manufacture of men's suits, suit-type jackets, 
and trousers in order to limit the tariff inversion U.S. suit-
makers face in the purchase of such fabric.
    On May 4, 2000, the conference report on H.R. 434 was filed 
(H. Rept. 106-606). On May 4, 2000, the House of 
Representatives passed the conference report on H.R. 434 by a 
vote of 309-110. On May 11, 2000, the Senate passed the 
conference report by a vote of 77-19. The bill was signed into 
law by the President on May 18, 2000 (P.L. 106-200).

                     8. MISCELLANEOUS TRADE ISSUES

a. Legislation Making Technical Corrections and Miscellaneous 
        Amendments to U.S. Trade Laws (1999)

    On February 2, 1999, Chairman Archer introduced H.R. 435, 
which contained substantially the provisions contained in H.R. 
4856 of the 105th Congress. The bill was considered under 
suspension of the rules and passed the House by 414-1 on that 
same day. The bill was received in the Senate on February 11, 
1999. On May 27, 1999, the Senate passed the legislation with 
an amendment by unanimous consent and forwarded it to the 
House. On June 7, 1999, the House passed the Senate amendment 
to H.R. 435 by a vote of 375-1. The bill was presented to the 
President on June 14, 1999. The President signed the 
legislation on June 25, 1999 (P.L. 106-36).
    H.R. 4856, introduced in the 105th Congress, contained 
substantially the provisions contained in two other bills 
introduced in the 105th Congress: H.R. 4342, as amended by the 
Senate, and H.R. 4608. 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 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 in 
California; 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.
    H.R. 4342, of the 105th Congress contained two parts. The 
first part contained miscellaneous corrections to U.S. trade 
laws to bring them up to date with current institutions and 
statutes. The second part contained provisions for temporary 
duty suspensions and other trade provisions. The second part of 
H.R. 4342 was in two sections. The first section provided 
temporary duty suspensions for specified chemicals and dyes. 
The second section of H.R. 4342 substantially included 
provisions that would have (1) extended to certain fine jewelry 
the trade benefits of insular possessions of the United States; 
(2) permitted 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) provided an exception to the five-
year reviews of antidumping and countervailing orders in very 
limited circumstances. A more detailed legislative history of 
H.R. 4342 is found in H. Rept. 105-671.
    Although H.R. 435 incorporated the provisions from H.R. 
4608 and H.R. 4342 of the 105th Congress, H.R. 435 included 
changes to certain provisions as well as additional provisions. 
The provision relating to the collection of user fees for 
cruise ship passengers was changed from $1 to $5. A provision 
was added to allow payment of education costs of dependents of 
certain Customs Service personnel who died in the line of duty.

b. Legislation Making Technical Corrections and Miscellaneous 
        Amendments to U.S. Trade Laws (2000)

    On August 12, 1999, and April 12, 2000, 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 15 and TR 20). These 
technical corrections related to the on-going process of 
identifying changes to improve the efficiency of the trade 
laws.
    On July 18, 2000, Chairman Crane introduced H.R. 4868, the 
Miscellaneous Trade and Technical Corrections Act of 2000. This 
legislation included provisions which were non-controversial 
and revenue-neutral based on public comments received in 
response to the advisories, Administration comments, and 
revenue analysis by the Congressional Budget Office.
    H.R. 4868 contained two parts. The first part contained a 
group of provisions to provide for temporary duty suspensions, 
extension of duty suspensions, liquidations and reliquidations, 
and special classifications for product development and 
testing. This part also contained two provisions introduced by 
Chairman Crane: H.R. 2714, which would change in rate for duty 
of goods brought by travelers returning to the United States; 
and H.R. 2715, which would provide duty free treatment for 
personal effects of participants in international sporting 
events. Other provisions in this section included: (1) an 
exception from making report of arrival and formal entry for 
certain vessels (H.R. 2213); (2) designation of San Antonio 
International Airport for Customs processing of certain private 
aircraft arriving in the United States (H.R. 2256); (3) 
collection of fees for Customs services for arrival of certain 
ferries (H.R. 2881); (4) alternative mid-point interest 
accounting methodology for underpayment of customs duties and 
fees (H.R. 4337); (5) treatment of certain multiple entries of 
merchandise as single entry (H.R. 4337); (6) requiring a report 
on Customs procedures relating to entry information (H.R. 
4337); (7) a prohibition on import and domestic sale of cat and 
dog fur products (H.R. 1622); (8) a provision removing gum 
Arabic from import sanctions(H.R. 1808); and (9) other 
miscellaneous provisions.
    The second part of H.R. 4868 contained a provision for 
trade adjustment assistance for certain workers affected by 
environmental remediation or closure of a copper mining 
facility (H.R. 4641). In addition, the bill contained 
provisions relating to the importation of cigarettes, including 
a technical amendment to the Balanced Budget Act of 1997, and a 
provision that would reinstate the duty-free allowance for 
returning travelers bringing export-labeled cigarettes.
    On July 17, 2000, the Trade Subcommittee marked up draft 
legislation entitled the ``Miscellaneous Trade and Technical 
Corrections Act of 2000,'' which was favorably reported by 
voice vote to the Committee on Ways and Means. The Committee on 
Ways and Means amended and marked up H.R. 4868, the 
``Miscellaneous Trade and Technical Corrections Act of 2000,'' 
and ordered it favorably reported by voice vote on July 19, 
2000. The bill was reported on July 25, 2000 (H. Rept. 106-
789). The Committee amendment included several duty-free 
provisions, as well as withdrawal of the provisions relating to 
the importation of cigarettes, the technical amendment to the 
Balanced Budget Act of 1997, and the provision that would 
reinstate the duty-free allowance for returning travelers 
bringing export-labeled cigarettes. In addition, the 
Committee's amendment expanded the exception for certain 
vessels from making report of arrival and formal entry (H.R. 
2213).
    On July 25, 2000, Chairman Crane asked the House to suspend 
the rules and pass the bill. The bill was considered under 
suspension of the rules and passed the House by roll call vote 
of 411-0 (Roll no. 438) on July 25, 2000, and it was received 
in the Senate on July 26, 2000.
    The Senate Committee on Finance ordered the bill favorably 
reported with an amendment in the nature of a substitute on 
September 19, 2000, and Senator Roth reported the bill with an 
amendment in the nature of substitute on September 27, 2000. 
Senator Roth filed a report on H.R. 4868 on October 12, 2000 
(S. Rept. 106-503), and the bill passed the Senate with an 
amendment by unanimous consent. The Senate amendment added 
provisions relating to duty suspensions, cigarette importation, 
jet fuel, and reliquidation of certain entries of orange juice, 
tomato sauce, athletic shoes, and drawback of recycled 
materials. The Senate amendment added criminal penalties and 
increased civil penalties as well as other provisions relating 
to the import and domestic sale ban on cat and dog fur products 
(H.R. 1622), a provision granting normal trading relations to 
Georgia, and a provision reinstating three annual reports: 
ITC's report entitled The Year in Trade, and USTR's reports 
entitled, Trade Policy Agenda and Annual Report, and, National 
Trade Estimate Report on Foreign Trade Barriers. All three 
reports had expired on December 21, 1999 and were extended 
through May 2000. The Senate amendment did not include the 
House passed provision on gum Arabic.
    On October 24, 2000 the House agreed to the Senate 
amendment with an amendment pursuant to H. Res. 644. The House 
amendment added provisions relating to petroleum drawback, the 
salary for the chief Agricultural Negotiator at the Office of 
the United States Trade Representative, and a sense of the 
Congress relating to gum Arabic (see discussions under 
Unilateral Trade Sanctions). In addition, the House amended the 
provisions relating to the import ban on cat and dog fur 
products, including striking the criminal penalties provision 
and modifying language on labeling, in consultations with the 
Committees on Judiciary and Commerce. On October 26, 2000, the 
Senate agreed to the House amendment by unanimous consent. The 
President signed the bill on November 9, 2000 (P.L. 106-476).

c. Diamonds

    There were a number of legislative proposals in Congress 
seeking to address the trade in conflict diamonds. Such 
diamonds generally come from mines controlled by rebel forces 
and are traded for arms to fuel civil war in Africa. Some of 
the proposals included banning diamonds imported from specified 
countries and requiring a certification of where the imported 
diamond was mined.
    On September 12, 2000, Chairman Crane held a hearing on the 
import of conflict diamonds. This hearing was an effort to 
obtain viewpoints from the Administration, the industry, non-
governmental organizations and other interested parties for 
possible solutions to the issues relating to the trade in 
conflict diamonds.
    On June 16, 2000, Chairman Archer sent a letter to Chairman 
Young insisting that a Senate amendment to H.R. 4425, a bill 
making appropriations for Military Construction, Family 
Housing, and Base Realignment and Closure for the Department of 
Defense for the fiscal year ending September 30, 2001, be 
dropped from the bill during the House-Senate conference 
consideration of H.R. 4425. The Senate amendment would have 
imposed an import ban on diamonds from certain countries. 
Chairman Archer objected on the basis that the provision 
violated the prerogatives of the House to originate revenue 
measures. This provision was not included in the conference 
report.
    In a letter to Chairman Young dated October 11, 2000, 
Chairman Archer insisted that section 406 of the Senate-passed 
version of H.R. 4690, the Department of Commerce, Justice, and 
State, the Judiciary and Related Agencies Appropriations Actof 
2001, be dropped from the conference report on H.R. 4690. Specifically, 
section 406 would have imposed an import ban on diamonds from certain 
identified countries. However, the provision was not dropped, 
apparently by error, and was included in the conference report to H.R. 
4690. On October 26, 2000, Chairman Archer sent another letter to 
Chairman Young confirming a further mutual understanding to drop, or if 
necessary, repeal the provision and that the provision or any similar 
provision would not be included in any other remaining appropriations 
vehicle. Finally, Chairman Archer noted that he did not insist on the 
prerogatives of the House with respect to the conference report on H.R. 
4690 based on the assurances of the mutual understanding they had 
reached. The conference report on H.R. 4690 was not acted upon by the 
Senate. Legislation appropriating funds for the Departments of 
Commerce, Justice, and State, the Judiciary was included in the 
conference report to H.R. 4577. That conference report did not contain 
a diamond import ban.

d. Bear Protection Act

    On May 24, 1999, Senator McConnell introduced S. 1109, the 
``Bear Protection Act,'' to prohibit the importation, 
exportation, and interstate trade of bear viscera and items, 
products, or substances containing, or labeled or advertised as 
containing bear viscera. The bill was referred to the Senate 
Committee on the Environment and Public Works.
    On July 26, 2000, S. 1109 was ordered reported to the 
Senate by the Committee on the Environment and Public Works 
without an amendment. On October 4, 2000, the Committee on the 
Environment and Public Works filed a report on S. 1109 (S. 
Rept. 106-484).
    The Senate passed S. 1109 without amendment by unanimous 
consent on October 17, 2000. Because S. 1109 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. 645, to return S. 1109 to the Senate. H. 
Res. 645 was considered and passed by the House on October 25, 
2000 by a voice vote.

e. Intelligence Authorization Bill for Fiscal Years 2000

    On April 26, 1999, Chairman Goss of the House Permanent 
Select Committee on Intelligence introduced H.R. 1555, the 
Intelligence Authorization Act for Fiscal Year 2000. H.R. 1555 
was referred to the House Permanent Select Committee on 
Intelligence and was reported to the House on May 7, 1999 (H. 
Rept. 106-130, Part I). On May 13, 1999, H.R. 1555 passed the 
House by a voice vote.
    On May 11, 1999, Chairman Shelby of the Senate Select 
Committee on Intelligence introduced a similar bill, S. 1009. 
Section 303 of the bill, as introduced, contained a provision 
in the jurisdiction of the Committee on Ways and Means 
extending through January 6, 2001 sanctions waiver authority 
under the National Security Act of 1947. This provision dealt 
with the President's authority to delay the imposition of 
sanctions upon his determination that proceeding with sanctions 
could compromise an ongoing criminal investigation or an 
intelligence source or method. S. 1009 was reported by the 
Senate Select Committee on Intelligence on May 11, 1999 (S. 
Rept. 106-48) and by the Senate Committee on Armed Services on 
June 8, 1999 (no written report filed). On July 21, 1999, 
Chairman Shelby offered the text of S. 1009 as an amendment in 
the nature of a substitute to H.R. 1555. On the same day, the 
Senate agreed to the amendment and passed the bill, as amended, 
by a voice vote.
    On September 18, 1999, Chairman Archer wrote to House 
Intelligence Chairman Goss regarding further consideration of 
H.R. 1555. In his letter, Chairman Archer noted that section 
303 of the Senate amendment contravened the requirement in 
Article I, Section 7 of the Constitution that revenue measures 
originate in the House of Representatives. On that basis, 
Chairman Archer requested the deletion of section 303 of the 
Senate amendment in the conference on H.R. 1555. Chairman Goss 
replied to Chairman Archer on September 21, 1999 and indicated 
that he would insist on the deletion of section 303 of the 
Senate amendment in conference.
    The conference report on H.R. 1555 was filed on November 5, 
1999 and did not contain the sanctions deferral provision from 
the Senate amendment (H. Rept. 106-457). On November 9, 1999, 
the House agreed to the conference report on H.R. 1555 by a 
voice vote. The Senate passed the conference report on H.R. 
1555 by a voice vote on November 19, 1999. H.R. 1555 was signed 
into law by the President on December 3, 1999 (P.L. 106-120).

f. Issues Involving U.S. Antidumping and Countervailing Duty Laws

    On September 22, 1999 Representative Visclosky et alia 
introduced H. Res. 298, a resolution calling on the President 
to abstain from renegotiating international agreements 
governing antidumping and countervailing duty measures and from 
participating in any international negotiation in which 
antidumping or countervailing duty rules are part of the 
negotiating agenda. The bill was referred to the Committee on 
Ways and Means. On November 4, 1999 Representative Visclosky 
rose to a question of the privileges of the House and offered a 
privileged resolution similar to H. Res. 298. On that same day, 
the Speaker ruled that the resolution did not concern a 
question of privilege and therefore may not be considered by 
the House at that time. Representative Visclosky then offered a 
motion to lay on the table the appeal of theruling of the 
chair. The motion was defeated by a vote of 218-204.
    On September 25, 2000, Chairman Archer wrote to Mr. Dan 
Crippen, Director of the Congressional Budget Office, 
requesting that CBO update its analysis of a 1998 study on the 
usage of antidumping laws by the United States and its trading 
partners. Chairman Archer requested that the study be made 
available in the first quarter of 2001.
    On October 3, 2000, the conference committee on H.R. 4461, 
the Agriculture and Related Agencies Appropriations Act for 
Fiscal Year 2001, adopted an amendment in the jurisdiction of 
the Ways and Means Committee titled ``Continued Dumping and 
Subsidy Offset Act of 2000.'' This provision, included in title 
X of the conference report, provides for the distribution of 
antidumping and countervailing duties collected by the U.S. 
Customs Service each fiscal year to affected domestic producers 
who were petitioners or interested parties to antidumping or 
countervailing duty orders. The amendment further directs the 
Commissioner of the U.S. Customs Service to establish a special 
account in the U.S. Treasury for the deposit of antidumping and 
countervailing duties collected by the Customs Service. On 
October 4, 2000, Chairman Archer wrote to House Appropriations 
Committee Chairman Young (FL) asserting the jurisdiction of the 
Ways and Means Committee with respect to the amendment and 
objecting to its inclusion in the conference report.
    The conference report on H.R. 4461 was filed on October 6, 
2000 with the ``Continued Dumping and Subsidy Offset Act of 
2000'' included in title X (H. Rept. 106-948). The conference 
report was passed by the House of Representatives by a vote of 
340-75 on October 11, 2000. The Senate passed the conference 
report on October 18, 2000 by a vote of 86-8. H.R. 4461 was 
signed into law by the President on October 28, 2000 (P.L. 106-
387).

g. Plant Protection Act

    In a letter dated May 23, 2000, Chairman Combest requested 
that Chairman Archer waive the jurisdiction of the Committee on 
Ways and Means on H.R. 1504, a bill to streamline, modernize, 
and enhance the authority of the Secretary of Agriculture 
relating to plant protection and quarantine, and for other 
purposes. The conference report to H.R. 2559, the 
``Agricultural Risk Protection Act of 1999,'' included a 
provision, entitled ``Notification and Holding Requirements 
Upon Arrival,'' which was within the jurisdiction of the 
Committee on Ways and Means. Specifically, the provision would 
have required the Secretary of the Treasury to notify promptly 
the Secretary of Agriculture of the arrival of any plant, plant 
product, biological control organism, plant pest, or noxious 
weed at a port of entry. The provision also would have required 
the Secretary of the Treasury to hold those products until they 
are inspected and authorized for entry into or transit movement 
through the United States, or otherwise released by the 
Secretary of Agriculture.
    In a letter dated May 25, 2000, Chairman Archer waived the 
Committee's jurisdiction with the understanding that doing so 
would not prejudice the jurisdictional prerogatives of the 
Committee on this provision or any other similar legislation 
and would not be considered as precedent for consideration of 
matters of jurisdictional interest to the Committee in the 
future. The bill was signed into law on June 22, 2000 (P.L. 
106-224).

h. User Fees

    On July 21, 2000, Chairman Archer and Ranking Member Rangel 
sent a letter to Chairman Young objecting to section 2132 of 
the Senate-passed version of H.R. 4577, a bill making 
appropriations for the Departments of Labor, Health and Human 
Services, and Education for fiscal 2001. The amendment would 
have extended for seven years the authority to collect certain 
user fees pursuant to section 13031(a) of the Consolidated 
Budget Reconciliation Act of 1985. Chairman Archer and Ranking 
Member Rangel stated that the basis for their objection was 
that the provision was highly controversial and did not go 
through the normal legislative process with full consideration 
of the views of all interested parties. The provision was 
dropped in the conference report.

i. Children's Sleepwear

    In a letter to Chairman Young dated July 28, 1999, Chairman 
Archer requested that House amendment 296 to H.R. 2490, a bill 
making appropriations for the Treasury Department, the United 
States Postal Service, the Executive Office of the President, 
and certain Independent Agencies, for the fiscal year ending 
September 30, 2000, be removed from H.R. 2490 during the House-
Senate conference. Specifically, amendment 296 would have 
prohibited the import of children's sleepwear without the 
labels required by the standards issued by the Consumer Product 
Safety Commission. Chairman Archer objected on the basis that 
the provision was within the jurisdiction of the Ways and Means 
Committee and violated the prerogatives of the House to 
originate revenue measures. The provision was deleted in the 
conference report on H.R. 2490.

j. Steam Generators

    On October 27, 2000, Chairman Archer sent a letter to 
Chairman Youngobjecting to including a duty suspension 
provision on imported steam generators in any appropriations 
legislation. He insisted, on jurisdictional grounds, that such revenue 
provisions be excluded from any final appropriations conference report 
because they would violate the prerogatives of the House to originate 
such measures. No such provision was included in any legislation in the 
106th Congress.

k. Trade Deficit Review Commission

    Throughout the 106th Congress, the Subcommittee monitored 
work by the Emergency Trade Deficit Review Commission, which 
was established by Sec. 127 of the Omnibus Appropriations Bill 
for Fiscal Year 1999, signed into law on October 21, 1998 (P.L. 
105-277). On November 13, 2000, the Ways and Means Committee 
received the Commission's report. H.R. 4205, the National 
Defense Authorization Act for Fiscal Year 2001, renamed the 
Trade Deficit Review Commission as the United States-China 
National Security Commission and directed it to monitor, 
investigate, and report to Congress on the national security 
implications of the bilateral trade and economic relationship 
between the United States and the People's Republic of China. 
H.R. 4205 passed the House on May 18, 2000, and the Senate on 
July 13, 2000. It was signed into law on October 30, 2000 (P.L. 
106-398).

l. Reports requested from the United States International Trade 
        Commission (ITC) pursuant to section 332(g) of the Tariff Act 
        of 1930, 19 U.S.C. Sec. 1332(g)

    On May 12, 1999, the Committee received a report from ITC 
entitled Pianos: Economic and Competitive Conditions Affecting 
the U.S. Industry (ITC Publication 3196). The report contains 
an overview of the global market for pianos, a profile of the 
U.S. piano industry, and comparison of factors affecting the 
competitive position of the U.S. and foreign producers. This 
report was in response to a November 12, 1998, request made by 
Chairman Archer.
    On August 25, 1999, the Committee requested that the ITC 
conduct a fact-finding investigation of the current competitive 
conditions affecting the U.S. foundry coke industry with 
respect to the role of imports from China in the U.S. market. 
Specifically, the report was to review the foundry coke 
industries in the United States and China for the most recent 
five year period and address, among other issues, production, 
prices, market factors, and transportation costs to U.S. 
markets for Chinese and domestic foundry coke. The ITC was to 
submit its report within one year of receipt of the request 
letter. On May 23, 2000, the Committee sent another letter to 
the ITC asking that the report be submitted by July 7, 2000, 
rather than August 25, 2000, as originally requested. The 
Committee received the report entitled Foundry Coke: A Review 
of the Industries in the United States and China (ITC 
Publication 3323) on July 10, 2000.
    In September 1999, the International Trade Commission 
submitted a report to the Committee, requested by Chairman 
Archer, providing an overview and analysis of the economic 
impact of U.S. sanctions policy with respect to India and 
Pakistan (ITC Publication 3236).
    On February 7, 2000, the Committee requested that the ITC 
continue to submit its annual report on the operation of the 
U.S. trade agreements, The Year in Trade 1999: Operation of the 
Trade Agreements Program 51st Report (ITC Publication 3336). 
Section 1463 of H.R. 4868, the Tariff Suspension and Trade Act 
of 2000, reinstated the mandate for ITC to complete the Year in 
Trade report on an annual basis.
    On March 8, 2000, the Committee requested that the ITC 
conduct an investigation on the civil aerostructures industry. 
The ITC was asked to examine the composition of the industry, 
the process of new aerostructures development, and the relative 
strengths and weaknesses of the aerostructures industries in 
United States, Europe, Canada, and Asia. The ITC is to submit 
its report no later than 15 months after receipt of the request 
letter.
    On March 15, 2000, the Committee requested that the ITC 
conduct a study of the economic impact of U.S. sanctions with 
respect to Cuba. The ITC was asked to provide an overview of 
U.S. sanctions against Cuba, a description of the Cuban economy 
and Cuban trade and investment policies and trends, and an 
analysis of the historical impact of U.S. sanctions on both the 
U.S. and Cuban economies. The ITC is to submit its completed 
report to the Committee no later than 11 months following 
receipt of the request.
    In June 2000, the International Trade Commission submitted 
a report to the Committee, requested by Chairman Archer, 
providing a simplification of the Harmonized Tariff Schedule of 
the United States (ITC Publication 3318).
    On June 28, 2000, the Committee requested that the ITC 
conduct a fact-finding investigation relating to pricing of 
prescription drugs by certain U.S. trading partners. 
Specifically, the ITC was asked to determine the effect of the 
utilization of price controls on innovative medicine by the 
other G-8 countries or other countries that are signatories to 
the NAFTA on pricing for such drugs abroad and in the United 
States. The ITC was to submit the report within 90 days after 
receipt of the request letter. On August 9, 2000, the Committee 
sent a letter to the ITC extending the initial due date of the 
report to December 1, 2000, because of the complex nature of 
the study. On August 18, 2000, the Committee received a letter 
from Chairman Koplan confirmingthat the ITC will deliver the 
preliminary report on Pricing of Prescription Drugs on December 1, 
2000. The Committee received the report entitled Pricing of 
Prescription Drugs on December 1, 2000 (ITC Publication 3333).
    On October 30, 2000, the Committee requested that the ITC 
investigate tariff and non-tariff barriers that impact trade in 
the processed food and beverage sectors. Specifically, ITC was 
asked to describe the tariff and non-tariff barriers affecting 
trade in the processed food and beverage sectors, evaluate the 
prevalence of tariff escalation, and analyze the impact of 
tariff and non-tariff barriers on trade and investment in the 
processed food and beverage sectors. The ITC is to submit its 
completed report no later than October 1, 2001.

m. Establishment of the FTAA Secretariat in Miami, Florida

    On November 8, 1999, Senator Graham introduced S. Con Res. 
71, expressing the sense of the Congress that Miami, Florida, 
and not a competing foreign city, should serve as the permanent 
location for the Secretariat of the Free Trade Area of the 
Americas (FTAA) beginning in 2005. The Senate had passed S. 
Con. Res. 71 by unanimous consent on November 19, 1999. On 
April 11, 2000, the House suspended the rules and agreed to S. 
Con. Res. 71, by voice vote.

                 C. Legislative Review of Health Issues


 1. The Medicare, Medicaid and SCHIP Balanced Budget Refinement Act of 
                                  1999

    The Subcommittee on Health held hearings regarding 
provisions later included in the Medicare, Medicaid and SCHIP 
Balanced Budget Refinement Act of 1999 on March 2, March 18, 
and October 1, 1999.
    On October 14, 1999, H.R. 3075 was introduced in the House 
of Representatives. On October 15, 1999, the Subcommittee on 
Health considered and approved by voice vote H.R. 3075, and 
forwarded the bill to the full Ways and Means Committee. On 
October 21, 1999, the full Ways and Means Committee considered 
and approved H.R. 3075, which was then referred to the 
Committee on Commerce, and subsequently passed the House on 
November 5, 1999, by a vote of 388-25. The bill was received in 
the Senate on November 8, 1999 and subsequently amended to be 
re-introduced as H.R. 3426 on November 17, 1999. On November 
19, 1999, H.R. 3426 was incorporated by cross reference in the 
conference report to accompany H.R. 3194, the ``District of 
Columbia Appropriations Act,'' which was enacted as P.L. 106-
113 on November 29, 1999.
    The health provisions of H.R. 3194, as signed by the 
President, provide for a number of adjustments to provisions in 
the Balanced Budget Act of 1997. The legislation restores $16 
billion in funding over 5 years to health care providers, 
including hospitals, skilled nursing facilities, home health 
agencies, and Medicare+Choice plans, harmed by the reductions 
in spending mandated in the 1997 Balanced Budget Act. Among the 
provisions are increased payments for Medicare+Choice plans, a 
slow-down in the phase-in of the risk adjustment process, and 
reforms to the Medicare+Choice program that offer seniors more 
choices and flexibility.
    The bill includes provisions to improve seniors' Medicare 
benefits. Seniors' out-of-pocket costs for hospital outpatient 
care are limited to the same amount as the deductible for 
hospital inpatient care. Medicare's coverage of anti-rejection 
drugs used after organ transplants are extended beyond three 
years. Women are provided increased access to pap smear tests 
and cervical cancer screening.
    The legislation also provides significant, targeted funding 
for hospitals to smooth the transition from a cost-based 
payment system for hospital outpatient services to a 
prospective payment system, and it establishes mechanisms to 
ensure that seniors continue to enjoy access to the most modern 
technologies and drugs through an ``outlier'' adjustment and a 
transitional ``pass-through'' mechanism for new technologies 
and drugs. A number of provisions in the bill offer financial 
relief specifically for hospitals and other health care 
providers in rural areas, including strengthening the Critical 
Access Hospital program and extending the Medicare Dependent 
Hospital program. Payments to teaching hospitals and hospices 
also are increased.
    Skilled nursing facilities receive additional assistance in 
caring for medically-complex patients. Annual rehabilitation 
therapy caps are lifted for two years, but with safeguards to 
prevent fraud and abuse. The 15 percent scheduled reduction in 
payments to home health agencies is delayed until one year 
after the implementation of the prospective payment system for 
home health services, and agencies receive financial assistance 
with added paperwork and record keeping costs.
    The legislation also includes several provisions to improve 
the State Children's Health Insurance Program (SCHIP) for low-
income children and provides more stability in SCHIP funding by 
creating floors and ceilings and correcting the original 
payment formula to account for under-representation of the 
population in certain areas. Additionally, the legislation 
makes improvements in Medicaid disproportionate share funding 
by providing a permanent extension for certain safety net 
hospitals.

                      2. The Medicare RX 2000 Act

    The Subcommittee on Health held a hearing on Medicare 
beneficiaries' access to prescription drug benefits on February 
15, 2000. In addition, the Subcommittee held a hearing on the 
Administration's proposal to add a prescription drug benefit to 
the Medicare program on May 11, 2000.
    In response to these hearings, H.R. 4680, the ``Medicare Rx 
2000 Act,'' was introduced in the House of Representatives on 
June 15, 2000. The bill was referred to the Committee on Ways 
and Means, and subsequently, to the Committee on Commerce. On 
June 21, the Committee considered, marked up and ordered the 
bill to be reported by a recorded vote of 23-14. The bill, as 
amended, was reported by the Committee to the House of 
Representatives on June 27, 2000. The Committee on Commerce 
discharged the bill the same day and it was placed on the Union 
Calendar. On June 28, 2000, the Rules committee reported H. 
Res. 539, making in order the consideration of H.R. 4680. The 
House of Representatives passed the bill the same day by a vote 
of 217-214. The bill was received by the Senate on June 29, 
2000, but no further action was commenced on the legislation in 
the 106th Congress.
    H.R. 4680 would have created a new outpatient prescription 
drug program for Medicare beneficiaries under a new Part D in 
Title XVIII of the Social Security Act. It would have also 
modified the existing Medicare+Choice program. In addition, the 
bill included provisions that would have reformed the Medicare 
coverage and claims appeals processes, clarified the scope of 
drugs and biologicals covered under Part B, and established a 
voluntary disease management demonstration project for Medicare 
beneficiaries with diabetes, advanced-stage congestive heart 
failure, or coronary heart disease. Finally, the bill would 
have established a new Medicare Benefits Administration within 
the Department of Health and Human Services to administer both 
the prescription drug and Medicare+Choice programs. The 
Congressional Budget Office estimated that the bill would have 
increased Medicare outlays by $50.6 billion and total direct 
spending by $40 billion over five years.
    The new prescription drug program included in H.R. 4680 
would have been made available to all Medicare beneficiaries 
beginning in 2003. Under the program, drug benefits would be 
provided by either Medicare+Choice plans or new, private, 
prescription drug plans. The bill would have required the 
Secretary of Health and Human Services to contract with a 
sufficient number of plan sponsors, such that all Medicare 
beneficiaries would have access to at least two prescription 
drug plan options. Beneficiaries who elected to participate in 
the program would have chosen a plan each year during an annual 
enrollment period. Participation by beneficiaries in the 
program would have been voluntary.
    The bill specified minimum benefit requirements, 
beneficiary protections, and organizational standards that all 
plan sponsors would have been required to meet to participate 
in the program.
    With respect to benefits, plans would have had to offer at 
least a prescribed standard benefit package or qualified 
alternative coverage. For 2003, the standard coverage would 
have been defined to be coverage having (1) a $250 deductible, 
(2) required cost-sharing of on average 50 percent on the next 
$2,100 of incurred costs (above the deductible), and (3) a 
limitation on overall beneficiary out-of-pocket spending of 
$6,000. In subsequent years, the deductible, initial coverage 
limit, and out-of-pocket spending limitation would have been 
indexed to the average annual increase in per capita aggregate 
expenditures for covered outpatient drugs for Medicare 
beneficiaries. Qualified alternative coverage would have been 
required to be of at least an equivalent actuarial value of the 
standard package, have the same out-of-pocket spending 
limitation, and meet other tests designed to prevent adverse 
selection.
    Plan sponsors would have had to meet minimum information 
disclosure requirements, provide enrolled beneficiaries access 
to grievance and appeals processes, abide by specific drug 
formulary development, maintenance and appeals requirements, 
and maintain ongoing quality assurance, utilization management 
and medication therapy management programs. In addition, plan 
sponsors would have been required to be licensed as risk-
bearing entities under state law or meet alternative solvency 
requirements established by the Secretary, and meet other 
organizational requirements now specified for Medicare+Choice 
program contractors.
    In addition to the standard prescription drug benefit, H.R. 
4680 included additional benefit subsidies for low-income 
beneficiaries who enrolled in the new prescription drug 
program. Under the bill, enrollees who met the resource 
requirements of the Qualified Medicare Beneficiary (QMB) 
program and whose incomes were below 135 percent of the Federal 
poverty level would have been eligible for complete premium 
subsidies. In addition, these enrollees would have only been 
subject to nominal copays on drug consumption up to the initial 
benefit maximum. Enrollees who met the QMB program resource 
requirements and who had incomes between 135 and 150 percent of 
the Federal poverty level would have been eligible for phased-
out premium subsidies.
    H.R. 4680 also included provisions providing for a 
graduated scale of reinsurance payments to participating plan 
sponsors. These payments would be made to plans to reimburse 
them for a percentage of their incurred claims as their 
respective enrollees' prescription drug costs exceeded certain 
prescribed levels. For 2003, the bill would have provided 
reinsurance payments equal to 30 percent of the plan's 
incurredclaims in the $1,250 to $1,350 spending range, 50 percent of 
the plan's incurred claims in the $1,350 to $1,450 spending range, 70 
percent of the plan's incurred claims in the $1,450 to $1,550 spending 
range, 90 percent of the plan's incurred claims in the $1,550 to $2,350 
spending range, and 90 percent of the plan's incurred claims in the 
$7,050 and above spending range. In subsequent years, the Secretary 
would have been required to adjust these reinsurance attachment points 
and percentages such that the estimated total reinsurance subsidy 
payments in any given year equaled 35 percent of plans incurred claims, 
based on standard coverage. After considering the probable effects of 
the low-income and reinsurance subsidies, the Congressional Budget 
Office estimated that the average premium for a standard prescription 
drug plan would have to be approximately $39 a month and that 74 
percent of eligible Medicare beneficiaries would have enrolled in the 
program.
    H.R. 4680 would have also established a new Medicare 
Benefits Administration within the Department of Health and 
Human Services. The Medicare Benefits Administration would have 
been responsible for administering both the Medicare+Choice 
program and new prescription drug benefit program, and for 
conducting all Medicare beneficiary enrollment, eligibility and 
education activities. The bill would have also created a 
Medicare Ombudsman within the new Medicare Benefits 
Administration to assist beneficiaries.
    Finally, H.R. 4680 also included provisions that would have 
modified the way Medicare+Choice plans were reimbursed. The 
bill would have phased in the scheduled risk adjuster over a 
ten year period; increased the national minimum payment amount 
to $450 in 2002; increased the national per capita 
Medicare+Choice growth percentage in 2001 and 2002; increased 
the minimum update for payment areas with less than two plan 
contracts; eliminated the budget neutrality provision in 
current law that impedes the full financing of ``blended'' 
reimbursements in certain counties; accelerated the transition 
to a 50 percent national/50 percent local blended reimbursement 
rate; and allowed certain Medicare+Choice plans to begin 
negotiating their payment updates with the Medicare Benefits 
Administration starting in 2004.

     3. THE MEDICARE, MEDICAID, AND SCHIP BENEFITS IMPROVEMENT AND 
                         PROTECTION ACT OF 2000

    The Subcommittee on Health held a hearing regarding 
additional Medicare refinements to the Balanced Budget Act of 
1997 on July 25, 2000. Many of the issues raised during the 
hearing were later addressed in the Medicare, Medicaid, and 
SCHIP Benefits Improvement and Protection Act of 2000. On 
October 3, 2000, the Subcommittee considered, marked-up and 
amended draft legislation, which was incorporated into H.R. 
5543, the ``Medicare, Medicaid, and S-Chip Benefits Improvement 
and Protection Act of 2000.''
    On October 25, 2000, the Medicare, Medicaid, and SCHIP 
Benefits Improvement and Protection Act of 2000 was introduced 
in the House of Representatives as H.R. 5543. It includes many 
provisions in the Medicare Refinement and Benefits Improvement 
Act of 2000 and provisions in H.R. 5291, the ``Beneficiary 
Improvement and Protection Act of 2000.'' H.R. 5543 was 
included in the conference report to accompany H.R. 2614, the 
``Enactment of Certain Small Business, Health, Tax, and Minimum 
Wage Provisions,'' which passed the House of Representatives on 
October 25, 2000. After discussions with the Senate, the bill 
was subsequently amended to be re-introduced as H.R. 5661 on 
December 14, 2000. On December 15, 2000, H.R. 5661 was 
incorporated by cross reference in the conference report to 
accompany H.R. 4577, the ``Departments of Labor, Health, and 
Human Services, and Education and Related Agencies 
Appropriations Act, 2001, which passed the House of 
Representatives on December 15, 2000, and was agreed to by the 
Senate by unanimous consent.
    The legislation improves benefits offered to Medicare 
enrollees and restores funding to health care providers that 
have been harmed by payment reductions mandated by the Balanced 
Budget Act of 1997. Overall, the bill restores more than $30 
billion to seniors and providers over 5 years. The bill 
accelerates the reduction of high copayments that Medicare 
beneficiaries make for hospital outpatient services. In 
addition, the plan creates and extends new preventive benefits 
for seniors and the disabled, including coverage of biennial 
pap smear screenings and pelvic exams, glaucoma screenings, 
medical nutrition therapy for patients with diabetes or renal 
disease, colon cancer screenings for all Medicare patients, and 
study of Medicare coverage of thyroid screenings. Women are 
assured access to the most advanced technology (digital 
mammography) in the detection of breast cancer. The 24-month 
waiting period for Medicare coverage of individuals disabled by 
Amyotrophic Lateral Sclerosis (ALS), or Lou Gherig's disease, 
is waived.
    The bill also gives Medicare beneficiaries access to an 
external review process and expands the rights of Medicare 
patients to appeal coverage decisions. The time limitation on 
Medicare benefits for immuno-suppressive drugs is eliminated so 
seniors who receive organ transplants can live longer, and 
balance billing limits on prescription drugs are imposed.
    The legislation stabilizes and strengthens the 
Medicare+Choice (M+C) program by increasing payment rates, 
particularly in rural areas and medium-size cities. Assistance 
also is targeted at help those communities at greatest risk of 
losing their Medicare+Choice plans. M+C plans are permitted to 
give cash rebates on their Part B premiums.
    The bill offers assistance to health care providers by 
providing full inflation updates to their prices in 2001, with 
some providers receiving additional relief in 2002. Acute care, 
long term, rehabilitation and psychiatric hospitals receive 
payment increases, as do teaching hospitals and providers of 
renal dialysis and ambulance services. Hospitals in rural areas 
receive comparable treatment relative to hospitals in urban 
areas in the calculation of Medicare disproportionate share 
hospital (DSH) payments. Additional provisions build on, and 
strengthen, the Critical Access Hospital program. Seniors in 
rural areas may improve their access to world-class health care 
through telemedicine, and are assured better availability of 
home health services. Hospices receive increased payments. The 
planned 15 percent reduction in payments to home health 
agencies is delayed an additional year with study of whether 
nonroutine medical supplies should be carved out of the home 
health prospective payment system and paid on a separate basis. 
Skilled nursing facilities are relieved of some of the 
administrative burden of consolidated billing, and their 
payments related to the nursing component of their rates are 
increased so that they may hire more nurses to improve nurse 
staffing.
    The bill also makes several modifications to the Medicaid 
program, including the revision of disproportionate share 
hospital (DSH) payments and the creation of a new prospective 
payment system for Federally qualified health centers (FQHCs) 
and rural health centers (RHCs). The legislation allows for 
additional entities, such as schools, to make Medicaid 
presumptive eligibility determinations for children. The 
Secretary of Health and Human Services is directed to develop a 
simplified national application form for States, at their 
option, to use for individuals who apply for medical assistance 
for Medicare cost sharing under the Medicaid program.

            D. Legislative Review of Social Security Issues


             1. FEDERAL RETIREMENT COVERAGE CORRECTIONS ACT

    On January 19, 1999, Rep. Joe Scarborough introduced H.R. 
416, the ``Federal Retirement Coverage Corrections Act.'' On 
February 11, 1999, H.R. 416 was ordered favorably reported by 
the Full Committee (H. Rept. 106-29, Part 2). The bill passed 
the House on March 23, 1999. No action was taken by the Senate.
    H.R. 416 provides for the correction of certain retirement 
coverage errors affecting Federal employees who were 
erroneously enrolled in the wrong retirement plan. The bill 
further provides that retroactive earnings will be credited if 
individuals elect a retirement system that includes Social 
Security coverage, and the Social Security Trust Funds will be 
compensated to reflect the election. In addition, the 
Commissioner of Social Security is given the authority to take 
actions necessary to correct Social Security earnings records. 
Finally, the bill makes necessary conforming changes to the 
Social Security Act.

                2. SOCIAL SECURITY GUARANTEE INITIATIVE

    On February 23, 1999, Rep. Paul Ryan introduced H.J. Res. 
32, the ``Social Security Guarantee Initiative.'' On February 
24, 1999, the Full Committee ordered favorably reported H.J. 
Res 32, as amended (H. Rept. 106-34). The resolution passed the 
House on March 2, 1999. No action was taken by the Senate.
    H.J. Res. 32 states that the President and the Congress 
should join in strengthening the Social Security program and 
protecting the retirement income security of all Americans for 
the 21st century in a manner that: (1) ensures equal treatment 
across generations; (2) recognizes the unique obstacles that 
women face in ensuring retirement, disability, and survivor 
security and the essential role the program plays in protecting 
women's financial stability; (3) provides a continuous benefit 
safety net for workers, survivors, their dependents, and the 
disabled; (4) protects guaranteed lifetime benefits, including 
cost-of-living adjustments, for current and future retirees; 
and (5) does not increase taxes.

     3. TICKET TO WORK AND WORK INCENTIVES IMPROVEMENT ACT OF 1999

    The Subcommittee on Social Security held six hearings since 
1995 to examine work incentives for recipients of Social 
Security Disability Insurance (SSDI) benefits and Supplemental 
Security Income (SSI) benefits.
    On March 18, 1999, Rep. Rick Lazio introduced H.R. 1180, 
the ``Work Incentives Improvement Act of 1999.'' On May 19, 
1999, the Committee on Commerce ordered the bill favorably 
reported, as amended (H. Rept. 106-220 Part 1.)
    On October 13, 1999, Rep. Kenny Hulshof introduced H.R. 
3070, the ``Ticket to Work and Work Incentives Improvement Act 
of 1999.'' On October 14, 1999, the Full Committee ordered 
favorably reported H.R. 3070, as amended (H. Rept. 106-393 Part 
1).
    The House approved H.R. 1180 on October 19, 1999. On 
October 21, 1999, H.R. 1180 passed the Senate with amendment 
consisting of the text of S. 331, asamended. The conference 
report (H. Rept. 106-478) was agreed to by the House on November 18, 
1999 and by the Senate on November 19, 1999. The President signed the 
bill into law on December 17, 1999 (P.L. 106-170).
    The law establishes a Ticket to Work and Work Incentives 
Improvement Program within the Social Security Administration 
(SSA). Under the program, recipients of SSDI and SSI benefits 
receive a ``ticket'' which can be used to purchase services to 
help recipients re-enter the workforce. Employment networks are 
paid for results (rather than the cost of their services) by 
sharing in the benefit savings when disabled individuals leave 
the rolls and return to work.
    The law eases the rules for restoring cash and health 
benefits if a beneficiary re-enters the workforce, but must 
later reapply for benefits because of failing health. For SSDI 
beneficiaries, Medicare coverage is extended an additional 4.5 
years for a total of 8.5 years of coverage. Several provisions 
in the law provide States with added flexibility and incentives 
to expand Medicare and Medigap coverage to workers with 
disabilities
    The law authorizes a SSDI demonstration project to study 
the effects of replacing the current substantial gainful 
activity level with a $1 reduction in SSDI payments for every 
$2 in earnings over a determined level. In addition, GAO and 
SSA are required to evaluate current work incentives for 
individuals with disabilities and ways to improve such 
incentives.
    Finally, the law provides incentive payments to 
correctional institutions for reporting incarceration of SSDI 
beneficiaries, replaces the criteria for barring SSDI benefits 
to prisoners, and includes a number of technical amendments.

            4. SENIOR CITIZENS' FREEDOM TO WORK ACT OF 1999

    On March 1, 1999, Rep. Sam Johnson introduced H.R. 5, the 
``Senior Citizens' Freedom to Work Act of 1999.'' The 
Subcommittee held a hearing on February 15, 2000 and received 
testimony in support of H.R. 5 from the Administration, 
individuals affected by the retirement earnings test, and 
organizations representing senior citizens.
    On February 16, 2000, the Subcommittee ordered favorably 
reported H.R. 5, as amended. The Full Committee ordered the 
bill favorably reported, as amended on February 29, 2000 (H. 
Rept. 106-507), and the House passed the bill on March 1, 2000.
    On March 22, 2000, the Senate passed the bill with 
amendment. The House agreed to the Senate amendment on March 
28, 2000, and the President signed the bill into law on April 
7, 2000 (P.L. 106-182).
    The law repeals the retirement earnings test for 
individuals who attain the full retirement age (currently age 
65).

           5. SOCIAL SECURITY BENEFITS TAX RELIEF ACT OF 2000

    On July 27, 2000, the House passed H.R. 4865, the ``Social 
Security Benefits Tax Relief Act of 2000.'' For a discussion of 
this bill, see I.A.3.d. above.

     6. RAILROAD RETIREMENT AND SURVIVORS' IMPROVEMENT ACT OF 2000

    On July 13, 2000, Rep. Bud Shuster introduced H.R. 4844, 
the ``Railroad Retirement and Survivors' Improvement Act of 
2000.'' On July 25, 2000, the Full Committee ordered favorably 
reported H.R. 4844, as amended (H. Rept. 106-777, Part 2). The 
bill passed the House on September 7, 2000.
    On October 3, 2000, the Senate Committee on Finance ordered 
favorably reported H.R. 4844 with an amendment in the nature of 
a substitute (Rept. 106-475). No further action was taken by 
the Senate.
    H.R. 4844 makes several changes to the tax and benefit 
structure of the Railroad Retirement program and expands the 
program's investment authority. The bill makes four changes to 
Railroad Retirement benefits. First, widow(er) benefits are 
increased from 50 percent to 100 percent of the deceased 
worker's Tier 2 annuity. Second, vesting requirements for Tier 
1 and Tier 2 annuities are reduced from 10 years to 5 years. 
Third, the normal retirement age is reduced from 62 to 60 for 
workers with 30 years of service in the rail industry, thus 
restoring the retirement age to its pre-1983 level. Fourth, the 
maximum benefit which applies to Tier 2 annuities is repealed.
    H.R. 4844 establishes a Railroad Retirement Investment 
Trust outside of Treasury to invest the assets fo the Railroad 
Retirement Account. An independent Board of Trustees is 
appointed to administer the Trust. A private disbursing agent 
consolidates all funds needed to pay current benefits and 
issues a single monthly benefit check to each beneficiary.
    The supplemental annuity tax paid by railroad employers is 
eliminated, and supplemental annuity benefits are paid from the 
Railroad Retirement Investment Trust. In addition, the Tier 2 
payroll tax rate levied on employers is gradually reduced from 
16.1 to 13.1 percent. Thereafter, the tax rate is set each 
calendar year pursuant to astatutory formula based on a ratio 
of the balances and benefit obligations of the Railroad Retirement 
Investment Trust.
    H.R. 4844, as amended by the Full Committee, would have 
repealed the 4.3 cent motor fuel excise tax on railroads and 
inland waterway transportation. This provision was not included 
in H.R. 4844 as passed by the House, but was included in H.R. 
2614, the ``Taxpayer Relief Act of 2000'' which passed the 
House on October 26, 2000 (see I.B.2.b. above).

7. social security number privacy and identity theft prevention act of 
                                  2000

    On May 4, 2000, the Subcommittee held a hearing to examine 
eligibility requirements, SSA oversight, and activities of 
representative payees. On May 9 and 11, 2000, the Subcommittee 
held a two-day hearing to examine the use and misuse of Social 
Security numbers (SSNs). On July 17, 2000, the Subcommittee 
held a field hearing on protecting privacy and preventing SSN 
misuse.
    On July 13, 2000, Subcommittee Chairman E. Clay Shaw, Jr. 
introduced H.R. 4857, the ``Social Security Number Privacy and 
Identity Theft Prevention Act of 2000.'' On July 20, 2000, the 
Subcommittee ordered favorably reported H.R. 4857, as amended. 
The Full Committee ordered the bill favorably reported, as 
amended on September 28, 2000 (H. Rept. 106-996 Part 1). No 
action was taken by the House or the Senate.
    H.R. 4857 restricts the sale, use and public display of 
SSNs in the public and private sectors. The bill prohibits 
federal, State, and local government agencies from: (1) selling 
SSNs to the public, (2) displaying SSNs on internet sites and 
public documents, (3) displaying SSNs on government checks, (4) 
displaying SSNs on employee identification cards or military 
tags, and (5) displaying SSNs on drivers' licenses or other 
identification documents issued by State Departments of Motor 
Vehicles. The bill also prohibits government agencies from 
employing prisoners in jobs that provide them access to SSNs. 
Limited exceptions are made for the provisions prohibiting the 
sale and public display of SSNs, mainly to facilitate law 
enforcement and to ensure the accuracy of credit reporting. The 
bill requires GAO to study the use of the SSN as a personal 
identifier in all branches and levels of the government and to 
recommend how such use can be minimized.
    H.R. 4857 authorizes the Federal Trade Commission to issue 
regulations restricting the purchase and sale of SSNs in the 
private sector. The bill discourages businesses from denying 
services to individuals who refuse to provide their SSNs by 
subjecting them to penalties under Federal law. Finally, the 
bill amends the definition of ``credit report'' under the Fair 
Credit Reporting Act to include the SSN so that SSNs receive 
the same privacy protections as other consumer credit 
information.
    H.R. 4857 creates new criminal and civil penalties for 
violations of the law and enhances law enforcement authority 
for the Social Security Administration Office of Inspector 
General.
    H.R. 4857 also includes several provisions to protect 
Social Security and SSI beneficiaries whose monthly benefits 
are managed by representative payees. The bill enhances 
oversight of representative payees, disqualifies individuals 
from serving as representative payees if they have been 
convicted of an offense resulting in more than one year of 
imprisonment, and provides SSA with additional means of 
collecting misused funds. In addition, H.R. 4857 authorizes the 
re-issuance of Social Security and SSI benefit payments when a 
representative payee is found to have misused funds. The bill 
requires the payee to forfeit any fee collected from the 
beneficiary for months in which benefits were misused. Civil 
monetary penalties are extended for violations of the law.
    Finally, H.R. 4857 eliminates deemed military wage credits 
for certain active duty military service, allowing funds to be 
applied to other military compensation packages. The bill also 
prohibits organizations from charging customers for services 
that SSA provides free of charge and includes several other 
technical and conforming amendments.

            E. Legislative Review of Human Resources Issues


             1. child protection, foster care, and adoption

a. Foster Care Independence Act of 1999

    Title I of H.R. 3443, the ``Foster Care Independence Act of 
1999,'' provided States with more funding and greater 
flexibility in carrying out programs designed to help children 
make the transition from foster care to self-sufficiency. 
States promote the self-sufficiency of these young people by 
providing assistance in obtaining a high school diploma, career 
exploration, vocational training, job placement and retention, 
training in daily living skills, training in budgeting and 
financial management skills, substance abuse prevention, and 
preventive health activities (including smoking avoidance, 
nutrition education, and prepregnancy prevention).
    In addition, the ``Foster Care Independence Act of 1999'' 
containedSupplemental Security Income (SSI) provisions aimed at 
improving payment accuracy and reducing fraud. The legislation allowed 
the Social Security Administration (SSA) to use additional debt 
collection practices in recovering SSI overpayments. It allowed SSA to 
count certain trust funds as resources in determining eligibility for 
SSI benefits; imposed a period of ineligibility on SSI applicants who 
transfer or sell assets for less than fair market value; and, permitted 
SSA to obtain financial records for SSI recipients to ensure that they 
meet SSI's resource restrictions and remain eligible for benefits.
    Title II created a new program under title VIII of the 
Social Security Act that paid benefits to SSI recipients who 
served in the military during World War II and moved overseas. 
Recipients in this new program would be ineligible for SSI but 
would receive monthly benefits equal to about 75 percent of 
their old SSI benefit. By moving overseas, they would also 
become ineligible for Medicaid and food stamps. This new 
program would apply only to veterans receiving SSI at the time 
of enactment and would take effect a year after enactment.
    Title III narrowed and eventually eliminated the hold-
harmless provision of the child support program. Under current 
law, Federal and State governments retain any child support 
collected on behalf of current recipients and certain support 
collected on behalf of former recipients. Under the hold-
harmless provision, the Federal government guarantees that a 
State's amount of retained child support will not fall below 
the amount that it retained in fiscal year 1995.
    The Foster Care Independence Act of 1999 was originally 
introduced as H.R. 1802 on May 13, 1999, by Chairman Nancy 
Johnson and Ranking Member Ben Cardin of the Subcommittee on 
Human Resources. A hearing was held on May 13, 1999, to receive 
comments on H.R. 1802. Testimony at the hearing was presented 
by scholars, program administrators, foundation executives, a 
Member of Congress, and individuals participating in programs 
designed to help adolescents in foster care achieve self-
sufficiency through employment or post-secondary education. The 
Subcommittee also conducted a hearing on March 9, 1999, which 
included testimony from the Administration, child advocacy 
groups, program administrators, and former foster children. The 
Subcommittee considered H.R. 1802 and ordered it favorably 
reported to the full Committee, as amended, on May 20, 1999 by 
a voice vote, with a quorum present. The full Committee on Ways 
and Means considered the Subcommittee reported bill on May 26, 
1999, and ordered it favorably reported, as amended, on 
Wednesday, May 26, 1999, by voice vote (H. Rept. 106-182, Part 
I).
    H.R. 1802 was considered and passed, as amended, in the 
House on June 25, 1999. H.R. 3443, an updated version of the 
Foster Care Independence Act of 1999, was introduced November 
18, 1999, by Chairman Johnson and Ranking Member Ben Cardin. 
Under unanimous consent, the bill passed in the House on 
November 18, 1999. It passed under unanimous consent in the 
Senate on November 19, 1999, and was signed into law by the 
President on December 14, 1999 (P.L. 106-169).

b. Sense of Congress Resolution on Abandoned Babies

    H. Res. 465 expressed the sense of the House of 
Representatives that local, State, and Federal governments 
should collect and disseminate statistics on the number of 
newborn babies abandoned in public places.
    Chairman Johnson, along with Subcommittee members Dave 
Camp, Phil English, Wes Watkins, Mark Foley, and Scott McInnis, 
introduced this legislation on April 6, 2000. It was considered 
in the House under suspension of the rules and agreed to by 
voice vote on April 11, 2000.

c. Intercountry Adoption Act

    The subject matter of adoption is of longstanding interest 
to the Committee on Ways and Means. The purpose of the 
Intercountry Adoption Act was to implement the Hague Convention 
on the Protection of Children and Cooperation in Respect of 
Intercountry Adoption which became final on May 29, 1993 and 
was signed by the United States on March 31, 1994. The treaty 
was designed to establish internationally agreed upon norms and 
procedures for international adoptions to protect the rights 
of, and prevent abuses against, children, birth families, and 
adoptive parents involved in adoptions subject to the 
Convention, and to ensure that such adoptions are in the 
children's best interests; and to improve the ability of the 
Federal Government to assist U.S. citizens seeking to adopt 
children from abroad and residents of other Convention 
countries seeking to adopt children from the United States.
    H.R. 2909 was introduced by International Relations 
Committee Chairman Ben Gilman and Representative Dave Camp of 
the Committee on Ways and Means with 36 cosponsors on September 
22, 1999. The bill was referred to the Committee on 
International Relations, with additional referrals to the 
Committees on the Judiciary, Education and the Workforce, and 
Ways and Means. The Committee on International Relations 
reported the bill as amended on March 22, 2000, and it was 
discharged from the Committee on Ways and Means on June 22, 
2000.
    The bill, as amended, passed by voice vote in the House 
under suspension of the rules on July 18, 2000. It passed in 
the Senate with an amendment by unanimous consent on July 27, 
2000. On September 18, 2000, the Senate bill, as amended, 
waspassed in the House with amendment. The Senate agreed to the House 
amendment to the Senate amendment by unanimous consent on September 20, 
2000. H.R. 2909 was signed into law by the President on October 6, 2000 
(P.L. 106-279).

d. Flexible Funding for Child Protection Act of 2000

    On September 26, 2000, Chairman Johnson introduced H.R. 
5292, a bill that provided for demonstration programs on 
flexible funding in State use of Federal child protection 
funds. The purpose of the demonstrations was to determine 
whether providing States with such flexibility has an effect on 
caseload levels, on availability and use of services, on 
efficiency of service delivery, and on child safety, 
permanency, and well-being. The goal was to find ways to allow 
States to use the Title IV-E dollars for prevention and 
treatment as well as out-of-home placement. On July 20, 2000, 
the Subcommittee held a hearing on increasing the flexibility 
States have in their use of Federal funds in the child 
protection program. A hearing on the bill was held Tuesday, 
October 3, 2000.
    No further action was taken.

e. Adoption Incentives Bonus Provision

    The Adoption and Safe Families Act (P.L. 105-89) 
established a new provision (Section 473A of the Social 
Security Act) that is intended to promote adoption through 
incentive payments to States that increase their number of 
foster child adoptions, with additional incentives for the 
adoption of special needs foster children who receive Federally 
subsidized adoption assistance. The incentive payment is $4,000 
for each foster child above the number of adoptions in a 
baseline year whose adoption is finalized over baseline. An 
additional $2,000 incentive payment is made for each special 
needs child above the number of special needs adoptions in a 
baseline year whose adoption is finalized.
    The Adoption and Safe Families Act (P.L. 105-89) originally 
authorized appropriations of $20 million annually for FY 1999-
FY 2003 for adoption incentive payments. For FY 1999, $20 
million was appropriated by P.L. 105-277. However, the amount 
of incentive payments that States earned exceeded the $20 
million level. The Foster Care Independence Act (P.L. 106-169) 
authorized an additional $23 million for adoption incentive 
payments in FY 2000.
    Current law authorizes $20 million for FY 2001 to pay 
adoption incentives for FY 2000. FY 2001 appropriations for the 
Departments of Labor, Health and Human Services, and Education 
provides an additional $23 million as a retroactive payment for 
the 1999 payment shortfall, bringing the total FY 2001 
appropriation to $43 million. This provision was included in 
H.R. 4577, a consolidated appropriations bill that passed in 
the House and Senate on December 15, 2000.

                           2. WELFARE REFORM

a. Fathers Count Act of 1999

    The Fathers Count Act of 1999, H.R. 3073, established 
fatherhood grant programs for public and private entity 
projects designed to promote marriage, encourage successful 
parenting, and help fathers and their families avoid or leave 
cash welfare and improve their economic status. The legislation 
also established a national clearinghouse of information about 
fatherhood programs and provided for funds to conduct multicity 
fatherhood projects.
    The bill also expanded eligibility for participation in the 
Welfare-to-Work program under section 403(a)(5) of the Social 
Security Act to include more long-term welfare recipients and 
noncustodial parents with children on public assistance 
programs and expanded the definition of allowable work 
activities to include limited vocational education and job 
training.
    The legislation provided for the development of an 
alternative penalty procedure in child support for States that 
failed to meet the State Disbursement Unit (SDU) requirements 
of current law; and established new procedures by which States 
can use information in the New Hire Directory to reduce fraud 
in the Unemployment Insurance program.
    In addition, the legislation eliminated the performance 
bonus in the Welfare-to-Work program, provided additional 
funding for a major study of the effects of the 1996 welfare 
reform law (P.L. 104-193), and expanded training funds for 
court personnel in the child protection program funded under 
Title IV-E of the Social Security Act.
    The Subcommittee conducted a hearing on April 27, 1999, on 
fatherhood programs, which included testimony from the 
Administration, researchers, advocates, individuals who have 
designed and conducted programs for low-income fathers, and 
young fathers whose children are on welfare. The Subcommittee 
on Human Resources held a hearing on October 5, 1999, to 
receive comments on early drafts of the Fathers Count Act of 
1999 (later introduced as H.R. 3073), the bipartisan 
legislation written by Chairman Johnson and Ranking Member 
Cardin. Testimony at the hearing was presented by scholars, 
program administrators, foundation executives, and Members of 
the U.S. House of Representatives and the U.S. Senate.
    The Fathers Count Act of 1999 was considered by the 
Subcommittee on Human Resources and ordered favorably reported 
to the full Committee, as amended, on October 13, 1999, by a 
voice vote, with a quorum present. The bill was then introduced 
on October 14, 1999, as H.R. 3073, by Chairman Johnson and 
Ranking Member Cardin. The full Committee on Ways and Means 
considered the Subcommittee reported bill on October 21, 1999, 
and ordered it favorably reported, as amended, on Thursday, 
October 28, 1999, by voice vote.
    The House approved the legislation with amendments on 
November 10, 1999. Provisions from H.R. 3073 were included in 
H.R. 4678, the Child Support Distribution Act of 2000, which 
passed the House on September 7, 2000.

b. Welfare-to-Work

    At one time included as Title III of H.R. 3073, the Fathers 
Count Act of 1999, the welfare-to-work provision to modify 
eligibility and expand the allowable work activities was passed 
as part of the Fiscal Year 2000 Labor, Health and Human 
Services, Education, and Related Agencies appropriations bill, 
H.R. 3194. H.R. 3194 included several appropriations bills and 
other legislation and was signed into law on November 29, 1999 
(P.L. 106-113).

c. Census Bureau Provision for Welfare Reform Impact Evaluation

    Current law authorizes and appropriates $10 million for 
each of fiscal years 1996 through 2002 for the Census Bureau to 
collect survey information to be used to evaluate the impact of 
welfare reform. Under this provision, an additional $5 million 
would be appropriated for the Census Bureau to address the 
problem of attrition from the research sample. This provision 
was included in H.R. 4577, a consolidated appropriations bill 
that passed in the House and Senate on December 15, 2000.

                      3. CHILD SUPPORT ENFORCEMENT

a. The Child Support Distribution Act of 2000

    The Child Support Distribution Act of 2000, H.R. 4678 
(introduced as H.R. 4469) provided more child support money to 
current and former welfare recipients, simplified the rules 
governing the assignment and distribution of child support 
collected by States on behalf of children, improved the 
collection of child support, authorized demonstration programs 
on encouraging non-IV-D public agencies to help collect child 
support, and implemented a fatherhood grant program to promote 
marriage, encourage successful parenting, and help fathers find 
jobs and increase their earnings.
    The Subcommittee on Human Resources conducted hearings on 
September 23, 1999, and October 5, 1999, on child support 
enforcement issues. These hearings included testimony from the 
Administration, child support administrators, officials of 
local child support programs that operate independently of the 
Federal-State program, academic witnesses, researchers, and 
advocacy groups. Testimony at these hearings concerned State 
implementation of the 1996 child support reforms, the current 
and potential role of child support enforcement outside the 
Federal-State program funded under Title IV-D of the Social 
Security Act, the impact of domestic violence on child support 
enforcement, and fatherhood programs. The Subcommittee held a 
hearing on May 18, 2000, to receive comments on H.R. 4469. 
Testimony at the hearing was presented by the Administration, 
program administrators, advocates, researchers, and Members of 
the U.S. House of Representatives.
    On June 15, 2000, Chairman Johnson introduced H.R. 4678, 
the Child Support Distribution Act of 2000. On June 27, 2000, 
the Subcommittee ordered the bill favorably reported, with 
amendment, to the full Committee, by recorded vote, with a 
quorum present. The full Committee on Ways and Means considered 
the Subcommittee reported bill on July 19, 2000, and ordered it 
favorably reported, as amended, on July 19, 2000, by voice 
vote. The House passed H.R. 4678, as amended, on September 7, 
2000.
    No further action was taken.

b. Alternate Penalty Provision Relating to State Disbursement Units

    This provision provided an alternative penalty for States 
that failed to meet the State Disbursement unit (SDU) 
requirements of current law and had submitted a corrective 
compliance plan by April 1, 2000. If a State comes into 
compliance on or after April 1, 2000 or on or before September 
30, 2000, the penalty amount would be one percent. If the State 
fails to come into compliance by September 30, 2000 the penalty 
in current law is replaced by an alternative penalty of 4 
percent for the first year, 8 percent for the second year, and 
16 percent, 25 percent, and 30 percent for years three through 
five (or more) respectively; the percentage penalty is applied 
to the Federal administrative reimbursement of State child 
support enforcement expenditures.
    The alternative penalty provision was included as Title IV 
of H.R. 3073, the Fathers Count Act of 1999. It was passed as 
part of the Fiscal Year 2000 Labor, Health and Human Services, 
Education, and Related Agencies appropriations bill, H.R. 3194. 
H.R. 3194 included several appropriations bills and other 
legislation. It wassigned into law on November 29, 1999 (P.L. 
106-113).

                 4. SUPPLEMENTAL SECURITY INCOME (SSI)

a. SSI Fraud and Abuse Provisions in the Foster Care Independence Act 
        of 1999

    The SSI Fraud Prevention Act of 1999, H.R. 631, addressed 
fraud and abuse in programs under Titles II (especially the 
disability program) and XVI of the Social Security Act. Issues 
addressed in the bill included prevention and collection of 
overpayment of benefits, prevention of SSI payments to 
prisoners, treatment of trusts and resources in determining 
eligibility, provision of new authority and responsibility to 
SSA with respect to fraudulent claims, improvement of data 
sharing, increased reporting to Congress on legislative and 
administrative reforms to reduce or prevent fraud and 
overpayments, and provision of new sources of information to 
SSA.
    In addition, H.R. 631 allowed certain Filipino veterans of 
the U.S. armed forces during World War II who move back to the 
Philippines to receive SSI benefits.
    The Subcommittee held a hearing on SSI fraud and abuse on 
February 3, 1999, which included testimony from Members of 
Congress, the Administration, and organizations representing 
citizens with disabilities and Filipino veterans. On February 
10, 1999 the Subcommittee on Human Resources ordered favorably 
reported to the full Committee, as amended, H.R. 631, the ``SSI 
Fraud Prevention Act of 1999,'' by a voice vote, with a quorum 
present.
    H.R. 631 was included as Title II of H.R. 1802, the Foster 
Care Independence Act of 1999. Consequently, H.R. 1802 was 
included in H.R. 3443, which was introduced and passed in the 
House by unanimous consent on November 18, 1999. On November 
19, 1999, H.R. 3443 passed by unanimous consent in the Senate 
and it was signed into law on December 14, 1999 (P.L. 106-169).

b. SSI Provision Regarding Statutory Employees

    Under current law, wages are defined to include the 
earnings of ``statutory employees'' and regardless of whether 
the employees are self-employed, they are treated by statute as 
employees for Social Security purposes. While these employees 
are treated as statutory employees for Social Security 
purposes, they are treated as self-employed for income tax 
purposes. This bifurcation has caused problems in determining 
SSI eligibility, particularly for statutory employees who are 
parents of disabled children. This provision treats individuals 
who are statutory employees under Social Security as self-
employed for purposes of SSI. This provision was included in 
H.R. 4577, a consolidated appropriations bill that passed in 
the House and Senate on December 15, 2000.

                      5. UNEMPLOYMENT COMPENSATION

    On Tuesday, February 29, 2000, the Subcommittee on Human 
Resources held a hearing on legislation related to Unemployment 
Compensation (UC) and proposals to reform and improve the UC 
system. Provisions included in these various proposals 
eliminated the 0.2 percent Federal Unemployment Tax Act 
surcharge, changed the base period employment requirements for 
eligibility for UC, shifted some Federal responsibilities to 
the States, provided incentives for States to improve the 
solvency of their benefit accounts, and increased access to 
unemployment benefits for laid-off workers seeking part-time 
work. The legislation considered during the hearing included 
H.R. 3174, the Employment Security Financing Act of 1999 which 
was introduced by Rep. Jim McCrery on October 28, 1999, H.R. 
3169, the Unemployment Tax Repeal Act of 1999 which was 
introduced by Rep. Phil English, H.R. 3708, the Parity for Part 
Time Workers Act which was introduced by Rep. Benjamin Cardin, 
and H.R. 1830, the Unemployment Compensation Amendments of 1999 
which was introduced by Representatives Sander Levin and Phil 
English. Witnesses included Representatives English and Levin, 
Administration officials, State administrators, organized 
labor, and employer representatives.
    Both before and after the February 29, 2000, hearing, a 
coalition of groups with an interest in the Unemployment 
Compensation system consisting of representatives from the 
Administration, organized labor, the business community, and 
the States met to work on a consensus reform proposal. On 
September 7, 2000, the Subcommittee held a hearing on this 
proposal. Witnesses included representatives of each group 
involved in the coalition meetings.
    No further action was taken.

                        6. ABSTINENCE EVALUATION

a. Abstinence Evaluation Date Change Provision

    Current law requires that the Secretary of Health and Human 
Services conduct an evaluation of Abstinence Education 
programs. The funds for evaluation must be spent by the end of 
Fiscal Year 2001. The provision changes the date to the end of 
Fiscal Year 2005. The provision passed the House on September 
7, 2000 as part of H.R. 4678, the Child Support Distribution 
Act of 2000. This provision was included in H.R. 4577, a 
consolidated appropriations bill that passed in the House and 
Senate onDecember 15, 2000.

                  F. Legislative Review of Debt Issues


              1. DEBT REDUCTION RECONCILIATION ACT OF 2000

    On February 9, 2000, the Committee on Ways and Means held a 
hearing on the President's Fiscal Year 2001 budget proposals.
    On March 24, 2000, the House approved H. Con. Res. 290, 
setting forth the Congressional budget for the United States 
Government for fiscal year 2001, revising the budget for fiscal 
year 2000, and setting forth appropriate budgetary levels for 
each fiscal year 2002 through 2005. The House agreed to the 
conference report on H. Con. Res. 290 on April 13, 2000.
    On June 8, 2000, pursuant to Section 213(c) of H. Con. Res. 
290, the Committee ordered favorably reported, as amended, its 
debt reconciliation recommendations which were incorporated 
into H.R. 4601, the ``Debt Reduction Reconciliation Act of 
2000,'' introduced by Rep. Ernest Fletcher on June 8, 2000 (H. 
Rept. 106-673 Part 1). On June 20, 2000, the House passed H.R. 
4601, as amended. No action was taken by the Senate.
    H.R. 4601 would establish an off-budget account in the U.S. 
Treasury, called the Public Debt Reduction Payment Account. If 
the Congressional Budget Office's revised estimate of the on-
budget surplus for fiscal year 2000 is higher than the 
estimated amount set forth in the Congressional budget 
resolution for fiscal year 2001 (H. Con. Res. 290), the excess 
amount would be automatically appropriated to the account, and 
the statutory debt limit would be reduced by an equivalent 
amount. Funds in the account would be used only to reduce the 
debt held by the public. H.R. 4601 would require the Secretary 
of the Treasury and the United States Comptroller General of 
the United States to report to Congress on how the funds were 
used to reduce the debt.

         2. DEBT RELIEF RECONCILIATION ACT FOR FISCAL YEAR 2001

    On February 9, 2000, the Committee on Ways and Means held a 
hearing on the President's Fiscal Year 2001 budget proposals.
    On March 24, 2000, the House approved H. Con. Res. 290, 
setting forth the Congressional budget for the United States 
Government for fiscal year 2001, revising the budget for fiscal 
year 2000, and setting forth appropriate budgetary levels for 
each fiscal year 2002 through 2005. The House agreed to the 
conference report on H. Con. Res. 290 on April 13, 2000.
    On July 17, 2000, Rep. Ernest Fletcher introduced H.R. 
4866, the ``Debt Relief Reconciliation Act for Fiscal Year 
2001,'' which contained the Committee's debt reconciliation 
recommendations pursuant to Section 103(b)(1) of H. Con. Res. 
290. The House passed H.R. 4866 on July 18, 2000. No action was 
taken by the Senate.
    H.R. 4866 would establish an off-budget account in the U.S. 
Treasury, called the Public Debt Reduction Payment Account. The 
bill would provide that $25 billion would be appropriated to 
the account on October 1, 2000 or the date of enactment 
(whichever is later), and the statutory debt limit would be 
reduced by an equivalent amount. Funds in the account can be 
used only to reduce the debt held by the public. The bill would 
require the Secretary of the Treasury and the U.S. Comptroller 
General of the United States to report to Congress on how the 
funds were used to reduce the debt.

    3. DEBT RELIEF LOCK-BOX RECONCILIATION ACT FOR FISCAL YEAR 2001

    On February 9, 2000, the Committee on Ways and Means held a 
hearing on the President's Fiscal Year 2001 budget proposals.
    On March 24, 2000, the House approved H. Con. Res. 290, 
setting forth the Congressional budget for the United States 
Government for fiscal year 2001, revising the budget for fiscal 
year 2000, and setting forth appropriate budgetary levels for 
each fiscal year 2002 through 2005. The House agreed to the 
conference report on H. Con. Res. 290 on April 13, 2000.
    On September 14, 2000, pursuant to Sections 103(b)(2) and 
213(b)(2)(C) of H. Con. Res. 290, the Committee ordered 
favorably reported, as amended, its debt reconciliation 
recommendations which were incorporated into H.R. 5173, the 
``Debt Relief Lock-Box Reconciliation Act for Fiscal Year 
2001,'' introduced by Representative Ernest Fletcher on 
September 14, 2000 (H. Rept. 106-862, Part 1). On September 18, 
2000, H.R. 5173 passed the House.
    The text of H.R. 5173 was also included in H.R. 5203, the 
``Debt Relief and Retirement Security Reconciliation Act,'' 
introduced by Social Security Subcommittee Chairman E. Clay 
Shaw, Jr. on September 19, 2000. H.R. 5203 passed the House on 
September 19, 2000. No action was taken by the Senate on either 
bill.
    H.R. 5173 would establish an off-budget account in the U.S. 
Treasury, called the Public Debt Reduction Payment Account. The 
bill would provide that $42 billion would be appropriated to 
the account on October 1, 2000 or the date of enactment 
(whichever is later), and the statutory debt limit would be 
reduced by an equivalent amount. Funds in the account can be 
used only to reduce the debt held by the public. The bill would 
require the Secretary of the Treasury and the U.S. Comptroller 
General of the United States to report to Congress on how the 
funds were used to reduce the debt.
    In addition, H.R. 5173 would establish points of order 
designed to reserve the surpluses in the Social Security and 
Medicare Hospital Insurance (HI) Trust Funds for debt reduction 
until legislation to save Social Security and Medicare is 
passed. The bill would establish a point of order against the 
consideration of any bill, joint resolution, amendment, motion, 
or conference report that would cause the on-budget surplus to 
be less than the projected surplus in the Medicare HI Trust 
Fund in any fiscal year. An exception would apply to any 
legislation designated as saving Social Security or Medicare.
    The bill also would establish a point of order against the 
consideration of any subsequent legislation that would cause 
the on-budget surplus to be less than the projected surplus in 
the Medicare HI Trust Fund for any fiscal year. An exception 
would apply to any legislation designated as saving Social 
Security or Medicare.
    H.R. 5173 would provide that any budget submitted by the 
President that recommends an on-budget surplus less than the 
surplus in the Medicare HI Trust Fund must include proposed 
legislative language for Social Security or Medicare reform.
    Finally, H.R. 5173 would provide that the receipts and 
outlays of the Social Security Trust Funds must be excluded 
from official government budget documents and must be submitted 
separately.

                          II. Oversight Review


                          A. Oversight Agenda

                       Committee on Ways and Means,
                                  House of Representatives,
                                 Washington, DC, February 11, 1999.
Hon. Dan Burton,
Chairman, Committee on Government Reform, Rayburn House Office 
        Building, Washington, DC.
Hon. William M. Thomas,
Chairman, Committee on House Administration, 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 106th Congress. The list has been broken 
down by Subcommittee, and follows an order in which the listed 
activities are likely to occur. This list is not intended to be 
exclusive; the Committee anticipates that additional oversight 
activities will be scheduled as issues arise and/or as time 
permits.

                             FULL COMMITTEE

    1. Social Security Trust Fund solvency issues. The 
Committee will continue to hold hearings to examine various 
issues affecting the well-being of individual recipients and 
the long-term solvency of the Social Security Trust Funds.
    2. Tax Proposals in Administration's Fiscal Year 2000 
Budget. The Full Committee will hold a series of hearings 
beginning February 14, 1999, to examine the tax proposals in 
the Administration's Fiscal Year 2000 budget.
    3. Fundamental Tax Reform. The Full Committee will continue 
to examine the impact of replacing the current income tax 
system with a broad-based consumption tax.
    4. Y2K Computer Conversion Efforts. The Full Committee will 
hold a hearing on February 24, 1999, to review the Y2K 
conversion efforts and contingency plans of agencies within the 
jurisdiction of the Committee. The goal of the hearing is to 
determine whether the agencies have adequate financial and 
personnel resources and are taking appropriate measures to 
ensure (1) services to program beneficiaries, and (2)that 
taxpayers will not be disrupted in the new year.

                       SUBCOMMITTEE ON OVERSIGHT

    1. Taxpayer Advocate Report. The Subcommittee held a 
hearing on February 10, 1999, to examine the third annual 
report of the Internal Revenue Service (IRS) Taxpayer Advocate 
to the tax-writing committees. In this report, which was 
mandated by the Taxpayer Bill of Rights 2 (``TBOR2''), the 
Taxpayer Advocate identifies initiatives undertaken to improve 
taxpayer services and IRS responsiveness and provides 
recommendations from the Problem Resolution Officers in IRS 
District Offices as to how to resolve problems which taxpayers 
experience in their dealings with the IRS.
    2. Y2K Computer Conversion Efforts. The Subcommittee held 
two hearings in the 105th Congress and issued a report to 
review the Y2K conversion efforts and contingency plans of 
agencies within the jurisdiction of the Committee. Following a 
Full Committee hearing in February of this year, additional 
hearings in the Oversight Subcommittee may be scheduled as 
needed.
    3. Steel Trade. In consultation with the Trade 
Subcommittee, the Oversight Subcommittee will review the 
President's January 1999 Report to the Congress on a 
Comprehensive Plan for Responding to the Increase in Steel 
Imports, and determine whether existing tax and trade laws (and 
relief for workers) are adequate in light of the recent 
increase in steel imports.
    4. Domestic Oil and Gas Industry. The Subcommittee will 
review the impact of current tax and trade policies on the 
domestic oil and gas industry, with an emphasis on the impact 
of world oil prices on small, independent producers.
    5. Tax Code Compliance Burden. The Subcommittee held a 
hearing in the 105th Congress on the compliance burden of the 
Internal Revenue Code for individual taxpayers and small 
businesses. The Subcommittee will continue this review of 
individual tax simplification issues such as the alternative 
minimum tax, family credits, and the capital gains tax, as well 
as small business issues such as expensing limits.
    6. IRS Fiscal Year 2000 Budget/1999 Tax Return Filing 
Season. The Subcommittee will hold a hearing in March or April 
to review the Administration's request for the IRS FY 2000 
budget and the status of the 1999 tax return filing season. 
Among other things, the Subcommittee will review how the IRS is 
improving customer service, how it is implementing recent 
changes in the tax law, and how it is progressing to modernize 
its computer systems to handle a growing workload as well as 
the century date change. Information developed at the hearing 
will be used as background for preparing the full Committee's 
recommendations to the Appropriations Committee regarding 
funding priorities for the IRS for FY 2000.
    7. Structured Settlements. The Subcommittee will hold a 
hearing on the tax rules that govern the use of structured 
settlements and the recent growth in transactions in which the 
recipients of structured settlements sell off future payments 
to factoring companies in exchange for discounted lump sum 
payments.
    8. Pension Policy. The Subcommittee will continue to review 
the pension tax law and explore ways in which it might be 
simplified and improved. The Subcommittee will examine employer 
coverage and employee participation issues, particularly for 
low-income and part-time workers, women and others who may not 
be adequately served by current law. The Subcommittee will also 
explore ways to remove burdensome regulatory requirements, 
improve the level of benefits that workers may accrue toward 
their retirement, and improve the portability of pension 
benefits by removing artificial barriers which prevent workers 
from rolling over their benefits among pension plans.
    9. Most Serious Management Problems. The Subcommittee will 
hold a hearing to receive testimony from the U.S. General 
Accounting Office (GAO) and the Inspectors General 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., 
security of information systems, and implementation of a 
variety of Medicare cost-saving improvements; Medicare claims 
fraud, IRS Accounts Receivable, Social Security Administration 
overpayments) will lay the groundwork for additional oversight 
activities in the 106th Congress.
    10. Oversight of the U.S. Customs Service. In consultation 
with the Trade Subcommittee, the Oversight Subcommittee will 
review the Customs Service's operations, including efforts to 
upgrade computer systems, interdict illegal narcotics at the 
southern and northern borders, comply with the Customs 
Modernization Act, and implement the Results Act.
    11. International Tax Law. The Subcommittee will hold a 
hearing to review the complexity of provisions of international 
tax law which have widespread application, with a focus on the 
need for simplification.
    12. Implementation of IRS Restructuring and Reform. The 
105th Congress passed the landmark IRS Restructuring and Reform 
Act of 1998, which contains numerous taxpayer protections, as 
part of its Taxpayer Bill of Rights 3 title. The Act 
alsoincludes significant IRS organizational changes. The Subcommittee 
will review the implementation of the new law, as well as the ``tax 
gap,'' focusing on the major categories of noncompliant filers, and 
consider ways to improve compliance where noncompliance rates and 
revenue losses are the greatest.
    13. Public-Private Worker Training Partnerships. The 
Subcommittee will review whether current law tax incentives are 
adequate for providing worker retraining, basic and high-tech 
training, and educational opportunities, including an 
assessment of successful programs and areas where the tax rules 
might be strengthened.
    14. Internet Commerce. The Subcommittee will examine tax 
issues related to commerce over the Internet.
    15. Urban Revitalization and Land Use. The Subcommittee 
will continue its review of the impact of tax rules on urban 
problems and land use, including effectiveness of the Low 
Income Housing Tax Credit, the Work Opportunity Tax Credit, and 
EZ/EC programs, Brownfields, as well as urban sprawl issues.
    16. Global Warming. The Subcommittee will review the 
adequacy of current law tax incentives in encouraging global 
climate change research to follow up on the full Committee's 
hearing on the fiscal year 2000 budget.
    17. Penalty and Interest Reform. The latest comprehensive 
revision of the overall penalty structure in the Internal 
Revenue Code was enacted as part of the Omnibus Reconciliation 
Act of 1989. The IRS Restructuring and Reform Act of 1998 
requires the Joint Committee on Taxation and the Treasury 
Department to conduct separate studies, due no later than July 
22, 1999, reviewing the interest and penalty provisions of the 
Code and making recommendations for administrative and 
legislative changes. The Subcommittee will review the studies 
and assess the recommendations.
    18. Taxpayer Information Privacy. The Internal Revenue Code 
prohibits disclosure of tax returns and taxpayer information, 
except as specifically authorized by the Code. These provisions 
have been amended in a piecemeal fashion since a major revision 
in 1976. The IRS Restructuring and Reform Act of 1998 requires 
the Joint Committee on Taxation and the Treasury Department to 
conduct separate studies, due no later than January 22, 2000, 
on provisions regarding taxpayer confidentiality. The 
Subcommittee will review the reports when they are issued.
    19. 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 TRADE

    1. African Growth and Opportunity Act. The Subcommittee 
will hold a hearing on February 3 to consider the U.S. trade 
relationship with Africa and legislation recently introduced by 
Chairman Crane, Mr. Rangel, and Mr. McDermott.
    2. Bilateral, Regional, and Multilateral Trade 
Negotiations. The Subcommittee will hold a series of hearings, 
beginning in February, concerning the content and strategy of 
trade negotiations in which the United States is participating, 
including the World Trade Organization Ministerial Meeting to 
be held in Seattle, the Asia Pacific Economic Cooperation 
Forum, and the negotiations on the Free Trade of the Americas 
Agreement. In addition, the Subcommittee will examine the 
prospects for further bilateral trade negotiations, including 
Europe, Chile, New Zealand, Australia, Singapore, and others. 
The Subcommittee will address the identification of U.S. 
priority negotiating objectives for these negotiations. The 
Subcommittee also intends to analyze the relationship of such 
negotiations to trade negotiating authority (``fast track''), 
particularly whether the United States is disadvantaged in 
these negotiations without having such authority in place. 
Finally, the Subcommittee will study the impact that trade 
agreements have on U.S. companies, farmers, workers, and 
others.
    3. Steel Trade. The Subcommittee, with the participation of 
interested members of the Oversight Subcommittee, will hold a 
hearing in early March to address the recent increase in 
imports of steel including its causes and its effects on U.S. 
companies and workers. In addition, the Subcommittee will 
examine legislative and other proposals regarding steel in 
order to determine their consistency with the letter and spirit 
of the WTO, their impact on trade practices of U.S. trading 
partners, and their effect on the U.S. steel industry, its 
workers, U.S. consumers, U.S. exporters, and U.S. industrial 
users.
    4. Authorizations for USTR, Customs, and the International 
Trade Commission. In March, the Subcommittee will hold a 
hearing to consider biannual authorizations of these agencies, 
as provided by statute; the Subcommittee also reviews annually 
the parts of the budgets of other agencies that have functions 
within Ways and Means oversight jurisdiction, such as the 
Commerce Department, State Department (payments to 
international organizations), etc.
    5. Customs Automation and the International Trade Data 
System (ITDS). In March, in cooperation with the Oversight 
Subcommittee, the Subcommittee will hold a hearing both on 
Customs automation efforts and on the ITDS, a program that 
theAdministration is proposing to serve as a single point of 
interaction between the U.S. Government and the trade community for the 
collection of revenue, including duties, related to international trade 
activities and information required by U.S. trade laws.
    6. Trade Remedies. The Subcommittee will hold a hearing in 
the spring to review the application of the new Commerce 
antidumping and countervailing duty regulations and to review 
application of ``sunset'' procedures. In addition, the 
Subcommittee will focus on how the antidumping, countervailing 
duty, and safeguard laws benefit particular industries and will 
address the consistency of remedies with WTO obligations. 
Finally, the Subcommittee will also continue to review the 
effect of antidumping orders on downstream users, especially 
the lack of availability to users of products subject to these 
orders.
    7. The World Trade Organization (WTO). Between now and 
November, the Subcommittee intends to hold a hearing and a 
series of consultations with the Administration on U.S. 
objectives for the WTO Ministerial meeting, which will be 
hosted by the United States. The Subcommittee and Committee 
expect to develop a U.S. agenda for the Ministerial together 
with the Administration through the process of consultations 
noted. Particular focus will be paid to areas in which the WTO 
needs to be deepened, broadened or improved, including with 
respect to next steps in agricultural trade, services trade, 
industrial tariffs, TRIPS, and addressing informal barriers to 
trade. The Subcommittee will also continually review ongoing 
trade negotiations within the WTO, including negotiations of 
accessions (particularly China and Russia). The Subcommittee 
will also examine the WTO dispute resolution system in order to 
assess the formal WTO review of the system and issues relating 
to the operation of the system in cases of interest to the 
United States. Finally, the Subcommittee will focus on the 
operation of key agreements in areas of greatest interest to 
the United States.
    8. Unilateral Trade Sanctions. The Subcommittee intends to 
continue its review of the use of unilateral trade sanctions to 
enforce non-trade goals and whether a process should be 
established with guidelines for the use of such sanctions.
    9. Trade Deficit Review Commission. The Subcommittee will 
review the findings of the Trade Deficit Review Commission and 
study the impact of the current account deficit on the U.S. 
economy.
    10. Caribbean Basin Trade Security Act. Particularly in 
light of the severe devastation and economic dislocation 
wrought on Central America as a result of recent hurricanes, 
the Subcommittee intends to continue its oversight concerning 
efforts to achieve NAFTA parity for the nations of the 
Caribbean Basin.
    11. Customs drug interdiction efforts. In cooperation with 
the Oversight Subcommittee, the Subcommittee will review 
Customs' current drug interdiction efforts to analyze their 
effectiveness and impact on business facilitation functions; 
determine whether additional authorizations are appropriate for 
drug interdiction efforts; study whether rotation policy should 
be changed to improve interdiction efforts; examine the impact 
of collective bargaining agreements and union grievances on 
drug interdiction efforts.
    12. Extension of the GSP program. The current program of 
tariff assistance to developing countries will expire on July 
1, 1999. The Subcommittee will likely consider whether it 
should be renewed for short time periods (and paid for under 
the budget rules) or for a longer duration.
    13. China's normal trade relations (NTR) status. The annual 
renewal process of China's NTR status under the Jackson-Vanik 
provisions of law begin each June with a Presidential 
determination of what the status should be for the upcoming 
year. The Subcommittee will examine the President's 
determinations in 1999 and 2000.
    14. Trade relations with Europe. The Subcommittee will 
review implementation by Europe of WTO panel rulings (bananas 
and beef hormones); review negotiations with Europe as part of 
the Transatlantic Economic Partnership and the Transatlantic 
Business Dialogue.
    15. Trade Relations with Japan. The Subcommittee will 
continue its oversight of U.S.-Japan trade relations, 
including: (1) operation of sectoral bilateral agreements (in 
particular, the U.S.-Japan bilateral agreement on insurance); 
(2) U.S.-Japan trade relations under the Uruguay Round 
agreements; (3) ability of WTO rules and dispute procedures to 
address opaque forms of protection still operating in Japan's 
market; and (4) importance of deregulation and market access in 
Japan to hastening recovery of Asia from its financial crisis.
    16. Normal Trade Relations with the Kyrgyz Republic. The 
Subcommittee will examine whether to authorize the President to 
determine that the Jackson-Vanik amendment to title IV of the 
Trade Act of 1974 should no longer apply to the Kyrgyz Republic 
and to extend unconditional normal trade relations to that 
country.
    17. Normal Trade Relations with the Lao People's Democratic 
Republic. Subcommittee will consider whether to extend normal 
trade relations to the Lao People's Democratic Republic upon 
publication of a Federal Register notice that a bilateral 
commercial agreement between the United States and the Lao 
People's Democratic Republic has entered into force.
    18. Jackson-Vanik Waiver for Vietnam. The annual review 
process of Vietnam's Jackson-Vanik waiver will begin in June 
with a Presidential determination of what that country's status 
should be for the upcoming year. If a resolution of disapproval 
is introduced with respect to the President's determination, 
the Subcommittee will consider that issue. In addition, the 
Subcommittee will review the status of the ongoing bilateral 
commercial agreement negotiations with Vietnam, which must be 
concluded and the results approved by Congress before an 
extension of normal trade relations to Vietnam can take place.
    19. Trade Adjustment Assistance (TAA). The Subcommittee 
will consider whether an extension of the general TAA programs 
for workers and firms, as well as the NAFTA-related TAA 
programs, is appropriate beyond the current expiration on June 
30, 1999. In this context, the Subcommittee may also consider 
ways in which trade adjustment assistance programs can be 
improved to ensure that they are as effective as possible in 
enabling workers and firms to adjust rapidly to dynamic 
economic changes that occur as a result of the increasing 
importance of trade to the U.S. economy.
    20. Rules of origin and country of origin marking. The 
Subcommittee will review and continue to consult with the 
Administration and the trade community on the status of the 
rules of origin negotiations underway in the World Customs 
Organization; updating rules of origin and country of origin 
marking to implement those negotiations so they reflect current 
business production, sales, and distribution practices; review 
whether U.S. law and practices are effective in preventing 
unlawful transshipment; review labeling requirements of U.S. 
trading partners with respect to meat and fresh produce.
    21. Miscellaneous reforms of U.S. Customs laws and 
practices. In cooperation with the Oversight Subcommittee, the 
Subcommittee will continue its oversight and review of customs 
laws, regulations and practices to ensure that they are not 
creating an unnecessary burden and cost to U.S. users 
(including turn-around time for ruling letter and decisions 
relating to detained and seized merchandise); reform overtime 
and premium pay for Customs inspectors; verification of Customs 
operational enhancement; review the r services provided; and 
conduct oversight hearings of Customs on various issues 
including Customs progress in implementing regulations and 
Customs practices under the Customs Modernization Act. In 
addition, the Subcommittee will work closely with the Senate 
Committee on Finance in its oversight efforts.

                         SUBCOMMITTEE ON HEALTH

    1. Management of the Health Care Financing Administration. 
The Subcommittee will hold a hearing on February 11th to 
examine and evaluate the management of the Health Care 
Financing Administration (HCFA).
    2. MedPAC Report and Recommendations. The Subcommittee will 
hold a hearing on the Medicare Payment Advisory Committee's 
(MedPAC's) 1999 recommendations to Congress regarding Medicare 
policies. Each year, MedPAC's panel of health care experts 
provides recommendations to Congress and its Committees with 
jurisdiction over the program.
    3. Medicare+Choice Program. The Subcommittee will hold a 
hearing in March to examine the Administration's implementation 
of the Medicare+Choice program. In particular, the Subcommittee 
will examine the risk adjuster, the payment rates, the timing 
of the plans applications, and the impact of the regulations on 
plan participation.
    4. Health Care Costs and the Uninsured. The Subcommittee 
will hold a hearing in March to examine health care costs and 
the uninsured. In particular, the hearing will examine the 
factors affecting health care cost growth and the impact of the 
rising costs on premiums and the number of uninsured.
    5. Health Care Quality. The Subcommittee will hold a 
hearing in early Spring to examine health care quality issues. 
The hearing will examine changes in the health care marketplace 
reflecting consumer concerns.
    6. Graduate Medical Education and Other Special Payments. 
The Subcommittee will hold a hearing during the late Spring on 
Medicare Graduate Medical Education payments, Disproportionate 
Share hospital adjustments and other special payments.
    7. Development of Prospective Payment Systems. The 
Subcommittee will hold a hearing during late Spring to examine 
the Administration's development of several prospective payment 
systems. The Balanced Budget Act required the Secretary of 
Health and Human Services to move from cost-based reimbursement 
to prospective payment systems. The hearing will take a close 
look at the progress on these systems.
    8. Other Issues. Further hearings will be scheduled as time 
permits to examine certain additional aspects of Medicare 
program management.

                    SUBCOMMITTEE ON HUMAN RESOURCES

    1. Welfare Reform. The Subcommittee will conduct a series 
of hearings to examine the impacts of the 1996 welfare reform 
law. The Subcommittee intends to examine the impacts of reform 
on female labor force participation, especially among never-
married mothers, as well as the impacts on poverty among all 
children and among inner-city children in particular. The 
Subcommittee will also examine the coordination between the 
welfare-to-work programs being mounted by States and the labor 
market services provided by both the U.S. Employment Service 
and the various work programsassociated with the Workforce 
Investment Act passed by Congress in 1998.
    2. Child Care. Given the dramatic movement of welfare 
mothers into the work force, child care has become an important 
issue in the States. The 1996 welfare reform law substantially 
reformed child care, primarily by terminating many disparate 
programs and combining most Federal requirements into one 
simplified child care program. Total Federal funding to States 
was increased by about $4 billion over 6 years. The 
Subcommittee will examine whether States are experiencing 
problems with the availability, cost, or quality of child care, 
focusing especially on whether States are using all the Federal 
funds available to them for child care.
    3. Child Support Enforcement. One of the most important 
provisions of the 1996 welfare reform law was the reform of the 
nation's child support enforcement program. Many of these 
reforms have now been implemented by States; the Subcommittee 
will examine the impacts of these reforms in a series of 
hearings. The major reforms under review will be the effects of 
the new hire tracking system, the effectiveness of the State 
Disbursement Units that handle payments, and the impacts of the 
new enforcement tools provided to States. In addition, the 
Subcommittee will explore issues of interstate child support 
enforcement and the possibility of more involvement of the 
private sector in collecting child support.
    4. Supplemental Security Income (SSI). For the past several 
years, the General Accounting Office has kept the SSI program 
on its list of programs at high risk of waste, fraud, and 
abuse. The Subcommittee expects to report legislation on this 
topic shortly.
    5. Child Protection. In November of last year, the 
Administration published regulations that outlined a proposed 
system of federal oversight of State child protection programs. 
The Subcommittee will conduct a hearing on these regulations 
and may introduce legislation aimed at strengthening the 
regulations. In addition, the Subcommittee will hold hearings 
to examine how State child protection programs are financed, 
with special attention to whether Federal funds provide States 
with adequate flexibility. Finally, the Subcommittee will 
conduct a hearing on the problems faced by adolescents who are 
aging out of foster care. Several studies have suggested that 
these children are at increased risk of unemployment, poverty, 
homelessness, and welfare dependency. The Subcommittee will 
explore whether States and local governments have developed 
good programs to address these problems.
    6. Unemployment Insurance. Following up on a hearing 
conducted last year, the Subcommittee will conduct a series of 
hearings on the nation's unemployment insurance system. Several 
issues, including comprehensive reform proposals that would 
increase State flexibility in designing and administering the 
unemployment insurance program, will be examined in these 
hearings.
    7. Nonmarital Births. A major goal of the 1996 welfare 
reform law was to reduce the incidence of nonmarital births. 
The Subcommittee will conduct one or more hearings to study 
progress toward the goal of reducing births outside marriage, 
especially among teenagers. The Subcommittee will focus special 
attention on explanations for the reduction in nonmarital 
births in recent years, the first decline in a generation.

                    Subcommittee On Social Security

    1. Social Security Trust Fund solvency issues. The 
Subcommittee will hold a series of hearings beginning in 
February 1999 to examine various issues affecting the well-
being of individual recipients and the long-term solvency of 
the Social Security Trust Funds. In addition, the Subcommittee 
will examine specific Social Security reform proposals and the 
experiences of other countries in making reforms to their 
retirement insurance programs.
    2. Disability program reform and oversight. The 
Subcommittee will hold an early hearing on the Social Security 
Disability Insurance (DI) program reforms designed to assist 
individuals with disabilities in returning to the workforce. In 
addition, the Subcommittee will conduct several hearings 
related to the solvency of the DI program, which is projected 
to become insolvent in 2019. The Subcommittee will focus 
oversight hearings on: the disability appeals process; SSA 
progress in redesigning the disability determination claims 
process to cut costs and improve public service; and a 
comprehensive review of the purpose, effectiveness, and 
progressivity of the disability program as it enters the 21st 
century.
    3. Social Security Administration (SSA) management of 
information technology. The Subcommittee will conduct an 
oversight hearing on SSA's year-2000 information systems 
readiness, and the status of SSA's efforts to implement its new 
modernized information systems infrastructure, to improve its 
software development process, and to deliver service over the 
Internet.
    4. Waste, fraud, and abuse in Social Security programs. The 
Subcommittee will conduct oversight to assess the degree of 
waste, fraud, and abuse in Social Security programs and to 
explore legislative remedies.
    5. Use of the Social Security number. The Subcommittee will 
examine the use of the Social Security number as an identifier, 
including the extent of its use by government and private 
entities, and the impact of restricting its use in keeping with 
privacy and other concerns.
    6. Service delivery. The Subcommittee will continue its 
ongoing oversight of SSA's service delivery with particular 
focus on plans to address the service needs of aging baby 
boomers.
            Sincerely,
                                             Bill Archer, Chairman.

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


Full Committee

    1. Hearings to examine Social Security Trust Fund solvency 
issues.
    Action Taken: On January 21, 1999, the Full Committee held 
a hearing to examine several issues raised by Social Security's 
long-term insolvency and proposals to preserve Social Security 
for the future. Testimony was heard from the Honorable Jack 
Kemp, the Reverend Jesse L. Jackson, and Dr. Alicia H. Munnell 
of the Boston College Carroll School of Management
    On February 11, 1999, the Full Committee held a hearing to 
examine Social Security reform in other countries. Testimony 
was heard from scholars of foreign public retirement programs 
and representatives of selected nations that have made recent 
changes to their public pension programs.
    On February 23, 1999, the Full Committee held a hearing to 
examine the President's Social Security reform framework, which 
was outlined in the Budget for Fiscal Year 2000. Testimony was 
heard from the Administration, GAO, the Congressional Budget 
Office, and a representative from the Committee for a 
Responsible Federal Budget.
    On June 9-10, 1999, the Full Committee held a hearing to 
examine Social Security proposals offered by Members of 
Congress that would achieve 75-year solvency as estimated by 
the Social Security Administration (SSA). Testimony was heard 
from the Deputy Chief Actuary of SSA, Committee Chairman Bill 
Archer, Subcommittee Chairman E. Clay Shaw, Jr., and other 
Members of Congress who have authored reform plans that are 
estimated to restore 75-year solvency.
    On October 26, 1999, the Administration submitted 
legislation outlining a plan that would extend the solvency of 
the Social Security Trust Funds. Rep. Richard Gephardt 
introduced the legislation (H.R. 3165, the ``Strengthening 
Social Security and Medicare Act of 1999'') on October 28, 
1999. The Full Committee held a hearing on November 9, 1999 to 
examine the legislation. Testimony was heard from the 
Administration, GAO, and the Congressional Budget Office.
    2. Y2K Computer Conversion Efforts.
    Action taken: The Ways and Means Committee held a hearing 
on February 24, 1999, to determine whether Federal agencies 
with programs within the Committee's jurisdiction would be able 
to renovate their computer systems to avoid problems associated 
with the ``Y2K bug'' in order to provide continuous service to 
beneficiaries and taxpayers in the year 2000. The Committee 
heard testimony from the Social Security Administration, the 
Financial Management Service, the Internal Revenue Service 
(IRS), the Customs Service, the Health Care Financing 
Administration (HCFA), the General Accounting Office and 
private sector stakeholders. Subsequent to the hearing, 
Subcommittee staff continued to monitor the progress of the 
agencies with emphasis on the agencies most likely to 
experience difficulty in their conversion efforts: the IRS and 
HCFA. On September 15, 1999, the Committee sent a detailed 
follow-up letter to each of the agencies to address specific 
concerns within the agencies. There were no significant 
interruptions in service to beneficiaries or to taxpayers 
associated with Y2K compliance.

Subcommittee on Oversight

            A. Subcommittee Hearings for 106th Congress
    1. Taxpayer Advocate Report.
    Action taken: The Subcommittee held a hearing on February 
10, 1999, to examine the third annual report of the Internal 
Revenue Service (IRS) Taxpayer Advocate to the tax-writing 
committees. In this report, which was mandated by the Taxpayer 
Bill of Rights 2 (TBOR2), the Taxpayer Advocate identifies 
initiatives undertaken to improve taxpayer services and IRS 
responsiveness and provides recommendations from the Problem 
Resolution Officers in IRS District Offices as to how to 
resolve problems which taxpayers experience in their dealings 
with the IRS.
    2. Steel Trade.
    Action taken: Members of the Oversight Subcommittee joined 
the Trade Subcommittee in a hearing on February 25, 1999, to 
review the President's January Report to Congress on a 
Comprehensive Plan for Responding to the Increase in Steel 
Imports. The Members also reviewed current tax and trade laws 
to determine whether they were adequate in light of increases 
in steel imports.
    3. Domestic Oil and Gas Industry.
    Action taken: The Subcommittee held a hearing on February 
25, 1999, to review the current tax laws, including incentives, 
to determine whether they are adequate to support the domestic 
oil and gas industry during a significant downturn in price. 
H.R. 2488, the ``Taxpayer Refund and Relief Act of 1999'' (H. 
Rept. 106-289) included provisions to allow net operating 
losses from oil and gas properties to be carried back for up to 
five years, to modify the small refiner limit for percentage 
depletion deductions, and to allow a current deduction for 
geophysical and geological costs associated with oil and gas 
production. The President vetoed the bill on September 23, 
1999.
    4. Tax Code Compliance Burden.
    Action taken: The Subcommittee held a hearing on May 25, 
1999, to examine provisions of the Internal Revenue Code that 
are overly complex, subject to frequent errors, or which place 
unnecessary compliance burdens on individual taxpayers and 
small businesses. The Subcommittee received testimony calling 
for the repeal of the individual Alternative Minimum Tax. The 
Subcommittee received testimony calling for the repeal of the 
Alternative Minimum Tax. H.R. 2488, the ``Financial Freedom Act 
of 1999,'' (H. Rept. 106-238) included such a provision. H.R. 
2488 was later retitled the ``Taxpayer Refund and Relief Act of 
1999.'' The House passed the conference report on H.R. 2488 on 
August 5, 1999. The President vetoed the bill on September 23, 
1999.
    The Subcommittee held a hearing on June 29, 2000, to review 
the first Annual Report from the Commissioner of the Internal 
Revenue Service on Tax Law Complexity. The annual report was 
required by section 4022(a) of the IRS Restructuring and Reform 
Act of 1999, P.L. 105-206. Provisions discussed included 
simplification of filing definitions, the individual 
Alternative Minimum Tax, and estimated taxes.
    5(a). IRS Fiscal Year 2000 Budget/1999 Tax Return Filing 
Season.
    Action taken: The Subcommittee held a hearing on April 13, 
1999, to review the IRS' budget request for FY 2000 and the 
1999 tax return filing season. The IRS' budget requested $8.2 
billion to support its programs and activities in Fiscal Year 
2000. H.R. 2490, the Treasury, Postal Service Appropriations 
bill for Fiscal Year 2000 (P.L. 106-58) appropriated $8.2 
billion for the IRS.
    5(b). IRS Fiscal Year 2001 Budget/2000 Tax Return Filing 
Season.
    Action taken: The Subcommittee held a hearing on March 28, 
2000, to review the IRS' budget request for FY 2001 and the 
2000 tax return filing season. The IRS budget requested $9.0 
billion to support its programs and activities in Fiscal Year 
2001. H.R. 4985, the Treasury, Postal Service Appropriations 
bill for Fiscal Year 2001, appropriated $8.9 billion for the 
IRS. H.R. 4985 was included as part of H.R. 4516, the 
Legislative Appropriations bill (H. Rept. 106-796). H.R. 4516 
was vetoed by the President on October 30, 2000.
    6. Structured Settlements.
    Action taken: The Subcommittee held a hearing on March 18, 
1999, to review the current tax treatment of structured 
settlements under section 130 of the Internal Revenue Code, to 
examine the tax consequences of the purchase of structured 
settlements, and to review proposals to levy an excise tax on 
the purchase of structured settlements. On July 13, 1999, 
Chairman Archer and Oversight Subcommittee Chairman Houghton 
engaged in a colloquy calling on the interested parties to 
settle their differences. As a result, the interested parties 
have agreed to a compromise that is reflected in H.R. 5421, the 
``Structured Settlement Protection Act.''
    7. Pension Policy.
    Action taken: The Subcommittee held a hearing on March 23, 
1999, to review the operation and effectiveness of the pension 
provisions in the tax law. Testimony received at the hearing 
helped in the development of H.R. 1002, the ``Comprehensive 
Retirement Security and Pension Reform Act,'' which later was 
incorporated into H.R. 2488, the ``Financial Freedom Act of 
1999,'' H.R. 5542, the ``Taxpayer Relief Act of 2000,'' and the 
conference report on the H.R. 2614, the ``Minimum Wage Act of 
2000.''
    8. Most Serious Management Problems.
    Action taken: See activities by Social Security 
Subcommittee and Health Subcommittee.
    9. Oversight of U.S. Customs Service.
    Action taken: The Subcommittee held a hearing on May 20, 
1999, to review allegations of racial profiling by customs 
inspectors performing personal searches of passengers arriving 
in the United States on international flights. Subsequent to 
the hearing, the Customs Service (1)implemented a new policy 
requiring Customs officers to consult with the local U.S. Attorney's 
office when a passenger has been held for more than 8 hours; (2) 
implemented a new policy in which Customs lawyers are available around 
the clock to advise Customs officers during the search process; (3) 
implemented a new policy requiring Customs supervisors to approve all 
pat-down searches (other than for weapons), (4) implemented a new 
policy requiring Customs supervisors to complete a checklist and review 
of every personal search performed; (5) implemented a new policy 
requiring a Customs Port Director to approve all searches that involve 
moving a person to a medical facility for a medical examination; (6) 
overhauled the Customs Personal Search Handbook; (7) instituted 
mandatory data collection to gather information on race, gender, age, 
citizenship, of all persons searched as well as the reasons for the 
search; (8) created a Passenger Data Analysis Unit at Customs 
headquarters to review all search data; and (9) instituted new and 
recurring training. After implementing these new passenger protections, 
the Customs Service conducted 61 percent fewer personal searches in 
Fiscal Year 2000 than in Fiscal Year 1999, yet the number of successful 
searches increased by 25 percent.
    10. International Tax Law.
    Action taken: The Subcommittee held a hearing on June 22, 
1999, to examine provisions of the current U.S. international 
tax regime that are overly complex, subject to frequent errors 
by taxpayers and revenue agents, or which place U.S. taxpayers 
at a competitive disadvantage in the global marketplace. The 
Subcommittee received testimony on two provisions that were 
later passed into law during the 106th Congress: (1) a 
prohibition on disclosure of advanced pricing agreements and 
APA background proposals was included in the conference report 
on H.R. 1180, the ``Ticket to Work And Work Incentives 
Improvement Act of 1999,'' P.L. 106-170, signed by the 
President on December 17, 1999; and (2) equitable treatment for 
sales of military property by foreign sales corporations in 
H.R. 4986, the ``Foreign Sales Corporation (FCS) Repeal and 
Extraterritorial Income Exclusion Act of 2000,'' P.L. 106-519, 
signed by the President on November 15, 2000. The Subcommittee 
also received testimony on several provisions that were 
included in H.R. 2488, the ``Financial Freedom Act of 1999,'' 
later retitled the ``Taxpayer Refund and Relief Act of 1999.'' 
The conference report was passed by the House and Senate, but 
vetoed by the President on September 23, 1999.
    11. Implementation of IRS Restructuring and Reform Act.
    Action taken: The Subcommittee held a hearing on July 22, 
1999, to review implementation of the IRS Restructuring and 
Reform Act of 1998.
    12. Public-Private Worker Training Partnerships.
    Action taken: The Subcommittee held a hearing on July 1, 
1999, to review the operation and effectiveness of the work 
opportunity tax credit. Testimony taken at the hearing was 
helpful in developing H.R. 2101, the ``Work Opportunity Tax 
Credit Reform and Improvement Act of 1999.'' The work 
opportunity tax credit was extended until December 31, 2001 in 
H.R. 1180, the ``Ticket to Work And Work Incentives Improvement 
Act of 1999,'' P.L. 106-170, signed by the President on 
December 17, 1999. The House passed an extension of the work 
opportunity tax credit through June 30, 2004 on October 26, 
2000 in H.R. 5542, the ``Taxpayer Relief Act of 2000,'' which 
was later incorporated into H.R. 2614, the conference report on 
the ``Minimum Wage Act of 2000,'' which was passed by the House 
on October 26, 2000.
    13. Internet Commerce.
    Action taken: The Subcommittee held a hearing on May 16, 
2000, to review the Advisory Commission on Electronic 
Commerce's report to Congress and to examine the effects of 
State and local, Federal, and international taxes on Internet 
access and electronic commerce. At the hearing the Subcommittee 
also heard testimony on H.R. 3916, a bill to repeal the Federal 
excise tax on telephone and other communications services. The 
House and Senate later passed the bill with amendments, and it 
was incorporated into H.R. 4516, the legislative branch and 
appropriations and Treasury-Postal appropriations for fiscal 
year 2001. The legislation was vetoed by the President on 
October 30, 2000.
    14. Urban Revitalization and Land Use.
    Action taken: The Subcommittee held a hearing on September 
30, 1999, to examine the impact of Federal tax laws on 
environmental conservation and preservation. The conference 
report on the ``Minimum Wage Act of 2000,'' H.R. 2614, which 
passed the House on October 26, 2000, included modifications to 
the expensing of environmental remediation costs.
    The Subcommittee held a hearing on March 21, 2000, to 
review current tax law incentives to assist distressed 
communities and to discuss proposals aimed to extend or 
strengthen current law incentives. The conference report on the 
``Minimum Wage Act of 2000,'' H.R. 2614, which passed the House 
on October 26, 2000, included tax incentives for renewal 
communities, extension and expansion of empowerment zone 
incentives, a new markets tax credit, improvements in the low-
income housing tax credit, and other community revitalization 
provisions.
    15. Global Warming.
    Action taken: The Subcommittee received testimony on the 
Energy Efficiency Technology Act as part of its September 30, 
1999, hearing to examine the impact of Federal tax laws on 
environmental conservation and preservation.
    16. Penalty and Interest Reform.
    Action taken: The Subcommittee held a hearing on January 
27, 2000, to review the Joint Committee on Taxation's Study of 
Present-Law Penalty and Interest Provisions and the Department 
of Treasury's Report to the Congress on Penalty and Interest 
Provisions of the Internal Revenue Code. The reports were 
mandated by section 3801 of the ``IRS Restructuring and Reform 
Act of 1998,'' P.L. 105-206. The purpose of the hearing was to 
examine the current penalty and interest provisions in the 
Internal Revenue Code and to consider recommendations to 
improve these provisions. Testimony taken at the hearing helped 
in the development of H.R. 4163, the ``Taxpayer Bill of Rights 
2000,'' which passed the House on April 11, 2000.
    17. Taxpayer Information Privacy.
    Action taken: On February 3, 2000, the Committee requested 
written comments for the record from all parties interested in 
the study and recommendations released on January 28, 2000, by 
the Joint Committee on Taxation concerning disclosure of 
Federal tax returns and return information. A number of 
provisions to strengthen the privacy of taxpayer information 
were included in H.R. 4163, the ``Taxpayer Bill of Rights 
2000,'' which passed the House on April 11, 2000.
    Subcommittee on Trade--Comparison of oversight plan 
developed in January 1999 to actual activities of the 
Subcommittee during the 106th Congress:
    1. U.S.-African Trade Relations and the African Growth and 
Opportunity Act.
    Action taken: The Subcommittee held a hearing on U.S. trade 
relations with sub-Saharan Africa on February 3, 1999, to 
consider H.R. 434, introduced by Chairman Crane, Ranking Member 
Rangel, and others to strengthen and promote mutually 
beneficial trade relations between the United States and 
countries in sub-Saharan Africa undertaking political and 
economic reform. The legislation passed the House on July 16, 
1999, and the Senate passed its version of the bill on November 
3, 1999. The conference report on H.R. 434 was passed by the 
House on May 4, 2000, and by the Senate on May 11, 2000. H.R. 
434 was signed into law by the President on May 18, 2000 (P.L. 
106-200).
    2. Bilateral, Regional, and Multilateral Trade 
Negotiations.
    Actions taken: On February 11, 1999, and March 4, 1999, the 
Subcommittee held hearings on the Importance of Trade 
Negotiations in Expanding Trade and Resisting Protectionism, 
which addressed the content and strategy of trade negotiations 
in which the United States is participating, including 
negotiations on the Free Trade Agreement of the Americas 
(FTAA), the Transatlantic Economic Partnership (TEP), and in 
the Asia Pacific Economic Cooperation forum (APEC). The 
Subcommittee analyzed the relationship of these negotiations to 
trade negotiating authority and whether the United States is 
disadvantaged by not having such authority in place. The 
Subcommittee consulted frequently with the Administration as to 
the status of all of these negotiations. Finally, the 
Subcommittee requested that GAO conduct a study concerning 
efforts by the U.S. government to monitor and enforce existing 
trade agreements.
    On April 11, 2000, the House suspended the rules and 
agreed, by voice vote, to S. Con. Res. 71, which expresses the 
sense of the Congress that Miami, Florida, and not a competing 
foreign city, should serve as the permanent location for the 
Secretariat of the Free Trade Area of the Americas (FTAA) 
beginning in 2005.
    3. Steel Trade.
    Actions taken: The Subcommittee held a hearing on steel 
trade issues on February 25, 1999, at which representatives of 
the U.S. steel industry, steel workers, and downstream users of 
steel products presented their views on the increase in imports 
of steel, including its causes and its effects on U.S. 
companies and workers. In addition, witnesses testified on U.S. 
trade remedy laws, particularly as they related to pending 
antidumping and countervailing duty investigations involving 
hot rolled steel from Japan, Russia, and Brazil.
    4. Biannual Authorizations for the Office of the United 
States Trade Representative (USTR), the U.S. Customs Service, 
and the International Trade Commission (ITC).
    Actions taken: The Subcommittee held a hearing on April 13, 
1999 on budget authorizations for USTR, the Customs Service, 
and the ITC. At that hearing, the Subcommittee also examined 
Customs automation issues--the Automated Commercial System 
(ACS), the Automated Commercial Environment (ACE), and the 
International Trade Data System (ITDS). In addition, the 
Subcommittee examined the impact of Customs rotation policies 
and collective bargaining agreements on Customs drug 
interdiction efforts. The Subcommittee and Committee later 
reported favorably H.R. 1833, which provided budget 
authorizations for USTR, the ITC and Customs, and the 
legislation passed the House on May 25, 1999. The Senate passed 
its own version of the bill, and the bill is awaiting 
conference action.
    The Subcommittee also requested and received a report from 
the General Accounting Office reviewing implementation of the 
Customs Modernization Act. In addition, the Subcommittee 
requested and received from GAO reviews of Customs user fees 
for air and sea passengers, Customs automation access fees, and 
themerchandise processing fee. The Subcommittee also requested 
and received from GAO a study analyzing the time taken by Customs to 
issue rulings. Finally, the Subcommittee has requested from GAO a 
review of the design and implementation of the Customs self-inspection 
program.
    5. Customs Automation and the International Trade Data 
System (ITDS).
    Actions taken: At its hearing on April 13, 1999 hearing on 
budget authorizations for USTR, the Customs Service, and the 
ITC, the Subcommittee examined Customs automation issues, 
including the Automated Commercial System (ACS), the Automated 
Commercial Environment (ACE), and the ITDS. In addition, 
Subcommittee requested and received from GAO a review of 
Customs automation access fees.
    6. U.S. Trade Remedy Laws.
    Actions taken: The Subcommittee took testimony on the 
effectiveness of U.S. trade remedy laws in responding to unfair 
trade practices at its February 25, 1999 hearing on steel trade 
issues. The Subcommittee also took testimony on the consistency 
under World Trade Organization rules of various proposed 
legislative changes to U.S. antidumping, countervailing duty, 
and safeguard laws. On September 25, 2000, Chairman Archer 
requested the Congressional Budget Office to update its 1998 
analysis on the usage of antidumping laws by the United States 
and its trading partners. The report will be completed during 
the first quarter of 2001.
    7. World Trade Organization and Preparation for the WTO 
Seattle Ministerial Meeting.
    Action taken: On August 5, 1999, the Subcommittee held a 
hearing on United States Negotiating Objectives for the WTO 
Seattle Ministerial Meeting hosted by the United States in 
November 1999. In addition, the Subcommittee held consultations 
with Ambassador Barshefsky throughout the year regarding the 
development of U.S. negotiating positions for this meeting. 
From November 30-December 3, 1999, Chairman Crane led a Ways 
and Means Committee delegation of 20 Members to attend the 
meeting. The Subcommittee received reports from the General 
Accounting Office, as follows: a review of the issues and 
agenda to be considered at the WTO Ministerial in Seattle, as 
well as the timing for a new round of trade negotiations; a 
report on the U.S. experience to date in dispute settlement 
system; a report analyzing the terms of China's accession to 
the WTO; a report on the amount of exports of goods and 
services by small and medium businesses; and a study concerning 
efforts by the U.S. government to monitor and enforce trade 
existing agreements. The Subcommittee has also requested a 
report assessing China's fulfillment of its World Trade 
Organization (WTO) obligations once it becomes a member of the 
WTO.
    On the subject of effective operation of the WTO dispute 
settlement mechanism and lack of compliance with WTO panel 
decisions, particularly in cases brought by the United States 
in disputes with the European Union involving bananas and beef, 
the Committee met several times with United States Trade 
Representative Charlene Barshefsky.
    Sections 124-125 of the Uruguay Round Agreements Act (URAA) 
(P.L. 103-465) require the President to submit a special report 
on U.S. participation in the WTO every five years from the date 
the United States first joined the WTO. The Committee received 
the first of these five-year reports on March 2, 2000.
    On March 6, 2000, Rep. Ron Paul (R-TX) introduced H.J. Res. 
90, which would withdraw Congressional approval of the United 
States from the agreements establishing the WTO. On June 8, 
2000, the Committee on Ways and Means ordered H.J. Res. 90, a 
resolution to withdraw approval of the United States of the 
agreements establishing the WTO, reported adversely. On June 
21, 2000, H.J. Res. 90 was defeated in the House.
    8. Use and Effect of Unilateral Trade Sanctions.
    Actions taken: The Subcommittee held a hearing on the use 
and effect of unilateral trade sanctions on May 27, 1999. 
During the hearing, the Subcommittee examined H.R. 1244, the 
``Enhancement of Trade, Security, and Human Rights Through 
Sanctions Reform Act,'' legislation introduced by Trade 
Subcommittee Chairman Crane to establish a procedural framework 
for the consideration of future U.S. unilateral sanctions.
    In September 1999, the International Trade Commission 
submitted a report to the Committee on Ways and Means, 
requested by Chairman Archer, providing an overview and 
analysis of the economic impact of U.S. sanctions policy with 
respect to India and Pakistan.
    On March 15, 2000, pursuant to section 332 of the Trade Act 
of 1974, the Committee requested that the ITC conduct by 
February 2001 a study of the economic impact of U.S. sanctions 
with respect to Cuba.
    9. Oversight and Review of the Trade Deficit Review 
Commission.
    Action taken: The Subcommittee has monitored the formation 
of the Commission and work done by the Commission to date. On 
November 13, 2000, theWays and Means Committee received the 
Commission's report.
    10. Hearing on the Caribbean Basin Trade Security Act.
    Actions taken: On March 4, 1999, Chairman Crane and 
Congressman Rangel introduced H.R. 984, the Caribbean and 
Central American Relief and Economic Stabilization Act, which 
would grant NAFTA parity to nations in the Caribbean Basin. 
Title I of the bill would have amended the Caribbean Basin 
Economic Recovery Act (CBERA) to: 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 (3) encourage the 
participation of these countries in the Free Trade Area of the 
Americas. On March 23, 1999, the Subcommittee held a hearing on 
H.R. 984. The Subcommittee approved H.R. 984 by voice vote on 
May 18, 1999. The Ways and Means Committee approved H.R. 984, 
as amended, by voice vote on June 10, 1999. The conference 
report on H.R. 434, the Trade and Development Act of 2000, was 
filed on May 4, 2000 (H. Rept. 106-606). The conference 
agreement builds on the Caribbean Basin Economic Recovery Act 
enacted in 1984 and extends additional trade benefits through 
2008. It extends duty-free benefits to several products 
categories previously excluded from duty-free treatment under 
the CBERA. The House passed the conference report on H.R. 434 
by a vote of 309-110 on May 4, 2000. The bill was signed into 
law by the President on May 18, 2000 (P.L. 106-200).
    11. Oversight and Review of Narcotics Interdiction Efforts 
by the U.S. Customs Service.
    Actions taken: Throughout its oversight of the Customs 
budget, the Subcommittee continued to review the effectiveness 
of Customs drug efforts and its impact on trade facilitation. 
As a result of this review, the Subcommittee included in H.R. 
1833, the authorization legislation for the Customs Service, 
additional funding for drug interdiction efforts including 
funding for equipment purchases and hiring of additional 
customs inspectors, special agents, and canine officers.
    12. Reauthorization of the Generalized System of 
Preferences.
    Actions taken: The Generalized System of Preferences 
Program was reauthorized through September 30, 2001, as part of 
H.R. 1180, the Ticket to Work and Work Incentives Improvement 
Act of 1999 (P.L. 106-170). The Africa Growth and Opportunity 
Act, signed into law by the President on May 18, 2000 (P.L. 
106-200) extended regular and enhanced GSP benefits through 
September 30, 2008, for eligible countries in sub-Saharan 
Africa.
    13. Normal Trade Relations (NTR) with the People's Republic 
of China.
    Actions taken: The Subcommittee examined the President's 
annual determination to continue China's NTR status in 1999 
with a hearing on June 8, 1999. A resolution disapproving the 
President's determination, H.J. Res. 57, was reported 
unfavorably by the Committee and was defeated by the House on 
July 27, 1999.
    On February 16, 2000, the Ways and Means Committee held a 
hearing focusing on: (1) the opportunities and issues 
associated with the entry of China into the WTO, and (2) the 
potential benefits of the U.S.-China bilateral trade agreement 
for U.S. firms, workers, farmers, ranchers, and other 
interested parties. The Committee also received testimony on 
how progress of China's accession to the WTO affects the 
pending application of Taiwan to join the WTO and the potential 
impact on the United States, China, Taiwan, and Hong Kong of 
normalized trade relations between the United States and China.
    On May 3, 2000, the Ways and Means Committee held a second 
hearing on the bilateral trade agreement between the U.S. and 
China and the pending accession of China to the World Trade 
Organization (WTO). The focus of the hearing was to examine: 
(1) the opportunities and issues associated with the entry of 
China into the WTO; (2) the potential benefits of the U.S.-
China bilateral trade agreement for U.S. firms, workers, 
farmers, ranchers, and other interested parties; and (3) the 
current status of negotiations in Geneva for China to accede to 
the WTO. The Committee also received testimony on how 
normalizing trade relations with China would affect other U.S. 
objectives in China and the surrounding region, such as 
improved respect for human rights, progress toward 
democratization, and enhanced economic and regional security.
    On May 15, 2000, Chairman Archer introduced H.R. 4444, to 
authorize extension of nondiscriminatory treatment (normal 
trade relations treatment) to the People's Republic of China 
and to establish a framework for relations between the United 
States and the People's Republic of China. On May 17, 2000, the 
Ways and Means Committee reported H.R. 4444 to the House, with 
an amendment. H.R. 4444 was further amended on the House floor 
and passed the House on June 24, 2000.
    On June 2, 2000, 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 continuing China's NTR status between July 1, 2000 and 
June 30, 2001. A resolution disapproving the President's 
determination was reported unfavorably by the Committee and was 
defeated by the House.
    H.R. 4444 was signed into law by the President on October 
10, 2000 (P.L.106-286). The Ways and Means Committee continues 
to monitor the progress China is making in negotiations to join the 
WTO.
    In March 2000, the Committee received a report from GAO 
entitled, China's Membership Status and Normal Trade Relations 
Issues, pursuant to an earlier request. On July 31, 2000, 
Chairman Archer joined Chairman Roth of the Senate Finance 
Committee in requesting GAO to assess China's fulfilment of its 
WTO obligations once it becomes a member of the WTO.
    14. Trade Relations with the European Union (EU).
    Actions taken: On February 11 and March 4, 1999, the 
Subcommittee held hearings on the Importance of Trade 
Negotiations in Expanding Trade and Resisting Protectionism. 
The hearings addressed the content and strategy of trade 
negotiations in which the United States is participating, 
including U.S./EU negotiations on the Transatlantic Economic 
Partnership and the Transatlantic Business Dialogue. The 
Subcommittee has also met with U.S. Trade Representative 
Charlene Barshefsky and with EU officials on a number of 
occasions to discuss EU compliance with WTO panel decisions. In 
addition, on September 27, 2000, the Subcommittee requested GAO 
to determine whether EU preferential trade agreements are 
structured to benefit the EU to the disadvantage of non-
participants.
    15. Trade Relations with Japan.
    Actions taken: In September 1999 the Subcommittee received 
a study from GAO, requested by Chairman Crane, to assess the 
implementation of the U.S.-Japan insurance agreements, as well 
monitoring and enforcement efforts by the U.S. government.
    16. Normal Trade Relations with the Kyrgyz Republic.
    Actions taken: The Subcommittee accepted written public 
comment from May 12, 1999, through June 11, 1999, on the 
extension of unconditional normal trade relations to the Kyrgyz 
Republic, which acceded to the World Trade Organization in 
December 1998. Legislation authorizing the President to 
determine that the Jackson-Vanik amendment to the Trade Act of 
1974 should no longer apply to the Kyrgyz Republic and to 
extend unconditional normal trade relations to that country was 
included in the conference report on H.R. 434, the ``Trade and 
Development Act of 2000.'' H.R. 434 was signed into law by the 
President on May 18, 2000 (P.L. 106-200).
    17. Normal Trade Relations with the Lao People's Democratic 
Republic.
    Actions taken: The Subcommittee accepted written public 
comment from July 29, 1999, through September 10, 1999, on the 
extension of unconditional normal trade relations to the Lao 
People's Democratic Republic upon the publication of a Federal 
Register notice that a bilateral commercial agreement between 
the United States and Laos has entered into force.
    18. Renewal of Presidential Waiver Under Title IV of the 
Trade Act of 1974 with Respect to Vietnam.
    Actions taken: The Subcommittee held a hearing on June 17, 
1999, on U.S.-Vietnam trade relations, including the 
President's renewal of Vietnam's waiver under the Jackson-Vanik 
amendment to the Trade Act of 1974. A resolution disapproving 
the President's determination, H.J. Res. 58, was reported 
adversely by the Committee on July 1, 1999 and was defeated by 
the House on August 3, 1999.
    The Subcommittee held another hearing on U.S.-Vietnam trade 
relations on June 15, 2000, and took testimony on the 
President's renewal of Vietnam's annual Jackson-Vanik waiver 
and the progress on the negotiation of a bilateral trade 
agreement with Vietnam. On June 28, 2000, a resolution 
disapproving the President's extension of Vietnam's Jackson-
Vanik waiver, H.J. Res. 99, was reported adversely by the 
Committee. H.J. Res. 99 was defeated by the House on July 26, 
2000.
    19. Reauthorization of the Trade Adjustment Assistance 
(TAA) programs.
    Actions taken: The general TAA programs for workers and 
firms, as well as the NAFTA-related TAA programs, were 
reauthorized through September 30, 2001, as part of the 
Consolidated Appropriations Act for Fiscal Year 2000 (P.L. 106-
113).
    Section 401 of the conference report on H.R. 434, the 
``Trade and Development Act of 2000,'' requires the General 
Accounting Office to submit a report to Congress on the 
efficiency and effectiveness of Federal and State coordination 
of employment and retraining activities associated with TAA, 
the Job Training Partnership Act, the Workforce Investment Act 
of 1998, and unemployment insurance. The report required 
pursuant to section 401 is due by February 2001. Section 408 of 
the same conference report requires the Secretary of Labor to 
submit a report to Congress on the applicability of TAA 
programs to agricultural commodity producers. The Secretary of 
Labor wrote to Chairman Archer to transmit a copy of the report 
required by section 408 on October 26, 2000.
    20. Rules of Origin and Country-of-Origin Marking.
    Actions taken: The Subcommittee has continued to review and 
consult with theAdministration and the trade community on the 
status of the rules of origin negotiations underway in the World 
Customs Organization (WTO). In addition, the Subcommittee continues to 
review whether U.S. law and U.S. Customs enforcement efforts are 
effective in preventing unlawful transhipment. The Subcommittee is also 
reviewing labeling requirements of U.S. trading partners with respect 
to meat, fresh produce, forged hand tools, and genetically modified 
products. The Subcommittee accepted written public comment from October 
18, 1999, through November 1, 1999, on H.R. 3066, a bill to amend the 
Uruguay Round Agreements Act with respect to the rules of origin for 
certain textile and apparel products. H.R. 435 (P.L. 106-36) amended 
the marking laws (19 U.S.C. 1304) relating to certain silk products.
    21. Miscellaneous Reforms of U.S. Customs Laws and 
Practices.
    Actions taken: The Subcommittee has continued its oversight 
and review of Customs laws, regulations, and practices to 
ensure that they are not creating an unnecessary burden and 
cost to U.S. users. On April 20, 2000, Chairman Crane asked for 
public and Administration comment on H.R. 4337, which included 
a number of Customs reform procedures. The following three 
provisions from the legislation were included in H.R. 4868 
(P.L. 106-476): alternative mid-point interest accounting 
methodology for underpayment of customs duties and fees; 
treatment of certain multiple entries of merchandise as single 
entry; and requiring a report on Customs procedures relating to 
entry information.
    The Subcommittee requested and received a number of reports 
related to Customs performance from the General Accounting 
Office (GAO) as follows: (1) a report examining the Customs 
Service compliance assessment of selected importers; (2) a 
report relating the Office of Regulations and Rulings 
timeliness in responding to importers' ruling requests in all 
categories of rulings; (3) an informal report relating to the 
cost basis for the President's FY 2000 budget proposed access 
fee for the use of Customs automation system (GAO was unable to 
make a determination); (4) a report on cost basis for the 
merchandise processing fee (GAO was unable to make a 
determination); and (5) a report on costs basis for user fees 
for processing air and sea passengers (GAO was unable to make a 
determination). Chairman Crane, joined by Archer and Chairmen 
Roth, requested that GAO review the design and implementation 
of the self-inspection program to determine the extent to which 
it will achieve the accountability the Commissioner is seeking. 
GAO is expected to complete this report on June 29, 2001.
    Subcommittee on Health--Comparison of oversight plan 
developed in January 1999 to actual activities of the 
Subcommittee during the 106th Congress.
    1. Hearing to examine Management of the Health Care 
Financing Administration.
    Action taken: The Subcommittee hearing was held on February 
11, 1999. Testimony taken at the hearing helped form the basis 
of legislation considered by the Committee which was included 
in H.R. 4680, the ``Medicare Rx 2000 Act.''
    2. Hearing to examine MedPAC Report and Recommendations.
    Action taken: The Subcommittee hearing was held on March 2, 
1999. Testimony taken at the hearing helped form the basis of 
legislation considered by the Committee which was included in 
H.R. 3075, the ``Balanced Budget Refinement Act of 1999.''
    3. Hearing to examine Medicare+Choice Program.
    Action taken: The Subcommittee hearing was held on March 
18, 1999. Testimony taken at the hearing helped form the basis 
of legislation considered by the Committee which was included 
in H.R. 3075 and H.R. 4680, and in H.R. 5543, the ``Medicare, 
Medicaid and SCHIP Benefits Improvement and Protection Act of 
2000.''
    4. Hearing to examine Health Care Costs and the Uninsured.
    Action taken: The Subcommittee hearing was held on June 15, 
1999. Testimony taken at the hearing helped form the basis of 
legislation considered by the Committee which was included in 
H.R. 2990, the ``Quality Care for the Uninsured Act of 1999.''
    5. Hearing to examine Health Care Quality.
    Action taken: The Subcommittee hearing was held on February 
10, 2000. Testimony taken at the hearing helped form the basis 
of legislation considered by the Committee which was included 
in H.R. 2990, the ``Quality Care for the Uninsured Act of 
1999.''
    6. Hearing to examine Graduate Medical Education and Other 
Special Payments.
    Action taken: The Subcommittee held hearings which 
considered these matters on September 22, 1999, and July 25, 
2000. Testimony taken at the hearing helped form the basis of 
legislation considered by the Committee which was included in 
H.R. 3075 and H.R. 5543.
    7. Hearing to examine Development of Prospective Payment 
Systems.
    Action taken: The Subcommittee held hearings which 
considered these matters on September 22, 1999, and July 25, 
2000. Testimony taken at the hearing helped form the basis of 
legislation considered by the Committee which was included in 
H.R. 3075 and H.R. 5543.
    Subcommittee on Human Resources--Comparison of oversight 
plan developed in January 1999 to actual activities of the 
Subcommittee during the 106th Congress:
    1. Welfare Reform.
    Action taken: On April 27, 1999, the Subcommittee held a 
hearing on the difficulties faced by unmarried fathers of 
children on welfare. Additional testimony on this issue and 
draft fatherhood legislation took place at an October 5, 1999 
hearing. Witnesses testifying at these hearings included 
Administration officials, scholars, and representatives from 
fatherhood groups. The Subcommittee proceeded to markup and 
pass H.R. 3073, the Fathers Count Act of 1999, on October 13, 
1999, with full Committee markup and passage on October 21, 
1999. The bill passed in the House on November, 10, 1999 by a 
vote of 328 to 93.
    The fatherhood provisions of H.R. 3073 were included as 
Title V of H.R. 4678, the Child Support Distribution Act of 
2000. H.R. 4678 was considered by the Subcommittee on June 27, 
2000, and a full Committee markup took place on July 26, 2000. 
On September 7, 2000, the bill passed in the House by a vote of 
405 to 18.
    In addition, the Subcommittee conducted several oversight 
hearings on welfare reform. A hearing on the effects of welfare 
reform was held on May 27, 1999. Field hearings on welfare 
reform were held in Erie, Pennsylvania, on November 15, 1999, 
Riviera Beach, Florida, on January 24, 2000, and Baltimore, 
Maryland, on February 14, 2000.
    2. Child Care.
    Action taken: The Subcommittee held a hearing on March 16, 
1999, on the Federal resources available for child care. The 
hearing examined the President's request for additional 
spending for child care programs and how the substantial 
reforms in Federal child care programs enacted as part of 
welfare reform were working at the State and local level. 
Witnesses included a representative from the Administration, 
researchers, State policymakers, and child care administrators.
    3. Child Support Enforcement.
    Action taken: On September 23, 1999, the Subcommittee held 
a hearing on oversight of the child support enforcement program 
which included testimony from the Administration, directors of 
child support programs, judges, and advocates. Legislation to 
turn child support collection over to the Internal Revenue 
Service, H.R. 1488, was the subject of a hearing on March 16, 
2000. Representatives Henry Hyde and Lynn Woolsey, sponsors of 
the bill, testified at this hearing. On May 18, 2000, a hearing 
on child support reforms including a proposal (H.R. 4469) to 
increase the amount of child support going to custodial parents 
and children was held. Witnesses included the Administration, 
advocacy groups, advocates for local government and private 
child support agencies, and State child support administrators.
    On June 27, 2000, the Subcommittee ordered H.R. 4678 
(introduced as H.R. 4469), the Child Support Distribution Act 
of 2000, favorably reported to the full Committee. The full 
Committee considered the Subcommittee reported bill and ordered 
it favorably reported on July 19, 2000. The House passed H.R. 
4678 on September 7, 2000.
    4. Supplemental Security Income.
    Action taken: The Subcommittee held a hearing on 
Supplemental Security Income (SSI) fraud and abuse on February 
3, 1999, which included testimony from Members of Congress, the 
Administration, and organizations representing citizens with 
disabilities and Filipino veterans. On February 10, 1999 the 
Subcommittee ordered favorably reported to the full Committee 
H.R. 631, the ``SSI Fraud Prevention Act of 1999.'' H.R. 631 
was included as Title II of H.R. 1802, the Foster Care 
Independence Act of 1999. H.R. 1802 passed the House on July 
25, 1999. H.R. 1802 was reintroduced as H.R. 3443 and passed in 
the House by unanimous consent on November 18, 1999. On 
November 19, 1999, it passed by unanimous consent in the Senate 
and was signed into law on December 14, 1999 (P.L. 106-169). In 
addition, a joint hearing with the Social Security Subcommittee 
on the management of disability cases was held on October 21, 
1999. Witnesses included representatives from the Social 
Security Administration, the U.S. General Accounting Office, 
judges, advocates, and organized labor.
    5. Child Protection.
    Action taken: On March 9, 1999, a Subcommittee hearing on 
the challenges confronting children aging out of the foster 
care system was held. Witnesses included the Administration, 
young adults who had recently left foster care, State program 
directors, and advocates. On April 22, 1999, a hearing on child 
protection oversight to examine the adequacy of the newly 
established Federal child protection review system was held. 
Witnesses included representatives from the Administration, 
theCongressional Research Service, State policymakers, and advocacy 
groups. H.R. 1802, the Foster Care Independence Act of 1999, as 
introduced by Chairman Johnson and Ranking Member Cardin, was the 
subject of a May 13, 1999, hearing. Witnesses included Representative 
Tom DeLay. The Subcommittee met to markup H.R. 1802 and pass it by 
voice on May 20, 1999. This was followed by full Committee markup and 
passage on May 26, 1999. H.R. 1802 was considered and passed in the 
House on June 25, 1999.
    The major provisions of H.R. 1802 were included in H.R. 
3443, the Foster Care Independence Act of 1999, that was 
introduced November 18, 1999, by Chairman Johnson and Ranking 
Member Ben Cardin. Under unanimous consent, H.R. 3443 passed in 
the House on November 18, 1999. It passed under unanimous 
consent in the Senate on November 19, 1999, and was signed into 
law by the President on December 14, 1999 (P.L. 106-169).
    Other hearings held by the Subcommittee included a July 20, 
1999, hearing on promoting adoption and other permanent 
placements, a February 17, 2000, hearing on State child and 
family services reviews, and a March 23, 2000, hearing on the 
availability of court personnel to decide child protection 
cases and the extent of substance abuse among families in the 
child protection system. A July 20, 2000, hearing on increasing 
State flexibility in use of Federal child protection funds was 
followed by an October 3, 2000, hearing on a bill introduced by 
Chairman Johnson, H.R. 5292, the Flexible Funding for Child 
Protection Act of 2000.
    6. Unemployment Insurance.
    Action taken: On February 29, 2000, and September 7, 2000, 
the Subcommittee held hearings on a variety of proposals to 
reform and improve the Unemployment Compensation system. 
Witnesses from the U.S. Department of Labor, employer groups, 
organized labor, and the State administrators testified at 
these hearings.
    7. Nonmarital Births.
    Action taken: Witnesses at a June 29, 1999, Subcommittee 
hearing on nonmarital births included advocacy organizations, 
scholars, and the senior researcher on this issue from the 
National Center for Health Statistics.
    Subcommittee on Social Security--Comparison of oversight 
plan developed in January 1999 to actual activities of the 
Subcommittee during the 106th Congress:
    1. Hearings to examine Social Security Trust Fund solvency 
issues.
    Action taken: The Subcommittee held a series of hearings on 
the impacts of the current Social Security system. The first 
hearing in the series was held on February 2, 1999 to examine 
the effects of the current program on young and future workers. 
Testimony was heard from program scholars and policy experts 
who discussed the impact on young and future workers if Social 
Security reform is delayed and the need to save now to prepare 
for their retirement.
    The second hearing in the series was held on February 3, 
1999 to examine how the current Social Security program 
protects women and how these protections can be enhanced. 
Testimony was heard from the U.S. General Accounting Office 
(GAO), Social Security experts, and organizations interested in 
women's retirement security.
    The third hearing in the series was held on February 10, 
1999 to examine the role of Social Security in reducing poverty 
among minorities, surviving families, and individuals with 
disabilities. Testimony was heard from GAO and various 
organizations representing interested groups.
    In addition to this series, the Subcommittee held other 
hearings to examine Trust Fund solvency.
    On March 3, 1999, the Subcommittee held a hearing to 
examine the effects of investing Social Security trust funds in 
the private markets. Testimony regarding the differences 
between government investing and individual investing was heard 
from the Administration and from several Social Security and 
financial experts.
    On March 25, 1999, the Subcommittee held a hearing on the 
goals of the Social Security program and the criteria for 
assessing reform proposals. Testimony was heard from the 
Administration, GAO, and Social Security experts.
    On April 15, 1999, the Subcommittee held a hearing to 
examine the findings of the 1999 Annual Report of the Board of 
Trustees on the financial status of the Social Security Trust 
Funds. Testimony was heard from the public representatives on 
the Board of Trustees who testified that the Social Security 
Trust Funds are expected to be depleted by 2034 under 
intermediate assumptions about economic and demographic 
variables.
    On April 6, 2000, the public representatives of the Board 
of Trustees testified before the Subcommittee regarding the 
findings of the 2000 Annual Report of the Board of Trustees. 
They testified that the date of depletion of the Social 
Security Trust Funds was extended from 2034 to 2037, mainly 
because of improvements in economic growth.
    On September 21, 2000 the Subcommittee held a hearing to 
examine the global aging crisis and the effects of global aging 
on public pension systems in other industrialized countries. 
Testimony was heard from Social Security and financial experts, 
including participants of the Global Aging Initiative of the 
Center for Strategic and International Studies.
    2. Hearings to examine disability program reform and 
oversight.
    Action taken: On March 11, 1999, the Subcommittee held a 
hearing to examine barriers preventing disability beneficiaries 
from returning to work. Testimony was heard from Disability 
Insurance program experts, representatives of organizations 
that promote the self-sufficiency of individuals with 
disabilities, service providers who assist return-to-work 
efforts, and consumers and potential consumers of those 
services. Witnesses offered recommendations for changes to the 
law that would remove existing barriers. Testimony from this 
and previous hearings on the topic formed the basis of H.R. 
3070, the ``Ticket to Work and Work Incentives Improvement Act 
of 1999,'' introduced by Subcommittee Member Kenny Hulshof. The 
Full Committee ordered favorably reported H.R. 3070, as 
amended, on October 14, 1999 (H. Rept. 106-393, Part 1). A 
similar version of the bill, H.R. 1180, introduced by Rep. Rick 
Lazio, passed the House on October 19, 1999 and was signed into 
law on December 17, 1999 (P.L. 106-170).
    On October 21, 1999, the Subcommittee held a joint hearing 
with the Subcommittee on Human Resources to examine SSA's 
management of disability caseloads. Testimony was heard from 
SSA, GAO, organizations representing disability examiners, 
Social Security caseworkers and applicants, and disability 
beneficiaries.
    On March 23, 2000, the Subcommittee held a hearing to 
examine work incentives in the Social Security Disability 
Insurance (SSDI) program for individuals who are blind and for 
those with other disabilities. Testimony was heard from policy 
experts, advocates for blind and disabled individuals, and 
affected beneficiaries. Witnesses focused their testimonies on 
the substantial gainful activity level used to determine 
initial and continuing eligibility for SSDI benefits. The 
``Ticket to Work and Work Incentives Improvement Act'' (P.L. 
106-170), which was signed into law on December 17, 1999, 
authorizes SSA to conduct a demonstration project regarding the 
effect of reducing benefits by $1 for every $2 of earnings in 
excess of the substantial gainful activity level. The law also 
authorizes the SSA and GAO to study work incentives for 
recipients of disability benefits.
    On July 13, 2000, the Subcommittee held a hearing to 
examine the challenges facing the SSDI and Supplemental 
Security Income (SSI) programs in the 21st century. Testimony 
was heard from GAO, disability experts, and advocates for 
people with disabilities. Witnesses discussed the 
characteristics of people with severe disabilities, the 
supports needed to achieve independence, and changes made 
within foreign and private-sector disability systems to meet 
the changing needs of people with disabilities.
    3. Hearings to examine Social Security Administration 
management of information technology.
    Action taken: On July 29, 1999, the Subcommittee held a 
hearing to examine SSA's readiness for the Year 2000 and other 
information technology issues. Testimony was heard from SSA and 
GAO, which has examined Social Security information technology 
systems.
    The Subcommittee also held a series of hearings to examine 
Social Security's readiness for the impending wave of Baby Boom 
retirees. The first hearing in the series was held on February 
10, 2000 with the Subcommittee on Human Resources. The second 
hearing was held on March 16, 2000. Testimony was heard from 
SSA, GAO, service delivery experts, management and employee 
representatives, and advocates for beneficiaries. Witnesses 
testified about current and future service delivery challenges 
that SSA is facing in the 21st Century and what the agency is 
doing to prepare for those challenges. The agency's information 
technology initiatives and future needs were discussed at the 
hearing. On October 11, 2000, Subcommittee Chairman E. Clay 
Shaw, Jr. introduced H.R. 5447, the ``Social Security 
Administration Preparedness Act of 2000'' to ease budgetary 
rules, making it easier for the agency to receive 
administrative resources to prepare for future service delivery 
challenges and to invest in technology initiatives.
    4. Hearings to examine waste, fraud, and abuse in Social 
Security programs.
    On March 30, 2000, the Subcommittee held a hearing to 
examine SSA's program integrity activities designed to prevent 
waste, fraud and abuse in the Social Security program. 
Testimony was heard from the Deputy Commissioner of Social 
Security and the Social Security Inspector General.
    On May 4, 2000, the Subcommittee held a hearing to examine 
Social Security representative payees who are hired to manage 
the monthly benefit payments of some Social Security and SSI 
beneficiaries. Testimony was heard from SSA, the Social 
Security Inspector General, and organizations that serve as 
representative payees. Witnesses discussed the current 
eligibility requirements for representative payees, SSA's 
oversight systems, instances in which those systems failed to 
protect beneficiaries from fraud and abuse, and suggestions for 
improving beneficiary protections. On November 13, Subcommittee 
Chairman E. Clay Shaw, Jr. introducedH.R. 4857, the ``Social 
Security Number Privacy and Identity Theft Prevention Act of 2000.'' 
The bill includes several provisions to strengthen eligibility 
requirements for representative payees, enhance oversight, and protect 
Social Security and SSI beneficiaries who rely on representative 
payees. H.R. 4857 was ordered favorably reported by the Subcommittee 
and the Full Committee on July 20, 2000 and September 28, 2000, 
respectively. No action was taken by the House or Senate.
    5. Hearings to examine use of the Social Security number.
    Action taken: On May 9 and 11, 2000, the Subcommittee held 
a two-day hearing regarding the use and misuse of the Social 
Security number (SSN). On the first day of the hearing, 
testimony was heard from GAO, the Social Security Inspector 
General, and identity theft victims. On the second day of the 
hearing, testimony was heard from Members of Congress who have 
introduced SSN privacy legislation, consumer privacy advocates, 
and representatives from industries who would be affected if 
SSN use were limited.
    On July 17, 2000, the Subcommittee held a field hearing in 
Delray Beach, Florida on protecting privacy and preventing SSN 
misuse. Testimony was heard from identity theft victims, law 
enforcement officials, State government officials, and private 
investigators.
    In response to information gathered at these hearings, 
Subcommittee Chairman E. Clay Shaw, Jr., introduced H.R. 4857, 
the ``Social Security Number Privacy and Identity Theft 
Prevention Act of 2000.'' The Subcommittee ordered the bill 
favorably reported on July 20, 2000, and the Full Committee 
ordered the bill favorably reported September 28, 2000. No 
action was taken by the House or the Senate.
    6. Hearings on SSA's service delivery.
    Action taken: The Subcommittee held a series of hearings to 
examine SSA's readiness for the impending wave of Baby Boomer 
beneficiaries. The first hearing in the series was held on 
February 10, 2000 with the Subcommittee on Human Resources. The 
hearing examined current and future service delivery challenges 
that SSA is facing in the 21st Century. Testimony was heard 
from members of the Social Security Advisory Board, which 
released a report on the topic identifying several impending 
challenges. Testimony was also heard from GAO and service 
delivery experts.
    The second hearing in the series was held on March 16, 2000 
to examine what SSA is doing to prepare for future challenges. 
Testimony was heard from the Commissioner of Social Security, 
Social Security management and employee representatives, and 
advocates for Social Security and SSI recipients.
    In response to this series of hearings, Subcommittee 
Chairman E. Clay Shaw, Jr. introduced H.R. 5447, the ``Social 
Security Administration Preparedness Act of 2000,'' on October 
11, 2000. The bill eases budgetary rules applying to SSA's 
administrative budget, making it easier for the agency to 
receive the resources it needs to address future service 
delivery challenges.
    On June 14, 2000, the Subcommittee held a hearing on SSA's 
processing of fees for attorneys who represent Social Security 
claimants. Testimony was heard from GAO, SSA, and individuals 
affected by the processing procedures. On June 9, 2000, 
Subcommittee Chairman E. Clay Shaw, Jr. introduced H.R. 4633 to 
improve SSA's payment system for attorneys.
    On September 26, 2000, the Subcommittee held a hearing to 
examine the quality of the notices which SSA sends to the 
public and action taken by the agency to improve the notices. 
Testimony was heard from SSA and GAO. In 1994, GAO reported 
that SSA's letters to the public were often difficult to 
understand, lacked essential details, presented information in 
an illogical order, and required complex analysis to understand 
how benefit adjustments had been made. Chairman Shaw had asked 
GAO to assess SSA's progress in improving its letters. GAO 
presented its findings at the hearing.

 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 hearing on September 13, 2000 to examine issues related to 
trade in African conflict diamonds.
    On February 24, 2000, a WTO Appellate Body, over the 
objections of the United States, upheld the finding of a WTO 
dispute settlement panel that had found that the Foreign Sales 
Corporation (FSC) provisions of sections 921 through 927 of the 
Internal Revenue Code constitute a prohibited export subsidy 
under the WTO Agreement on Subsidies and Countervailing 
Measures and under the Agreement on Agriculture. H.R. 4986, to 
amend the Internal Revenue Code of 1986 to repeal the 
provisions relating to foreign sales corporations (FSCs) and to 
exclude extraterritorial income from gross income, was signed 
into law on November 16, 2000. In developing this legislation, 
the Committee consulted heavily with the Administration and all 
parties affected.
    The Subcommittee also requested written public comment 
concerning theextension of unconditional normal trade relations 
with Albania, Armenia, Georgia, and Moldova.
    The Subcommittee also requested public and Administration 
comment concerning hundreds of legislative proposals making 
miscellaneous and technical changes to U.S. trade statutes. The 
Congress passed, and the President signed into law, two such 
omnibus bills during the 106th Congress: P.L. 106-36 and P.L. 
106-476.
    In January 1999, Chairman Archer led a delegation of 
Members to Chile, Venezuela, and Brazil. In April 2000, 
Chairman Archer led a delegation of Members to the Czech 
Republic, Egypt, and Morocco. The purpose of these trips was to 
provide an opportunity for Members to exchange views with 
foreign officials and the U.S. business community abroad about 
multilateral, regional, and bilateral trade issues.
    Finally, the Subcommittee requested and received a number 
of reports not listed in its oversight plans, as follows: 
received a report from the International Trade Commission (ITC) 
on the competitive conditions of the U.S. piano industry; 
received a report from the ITC of the current competitive 
conditions affecting the U.S. foundry coke industry with 
respect to the role of imports from China in the U.S. market; 
received a report from the ITC providing an overview and 
analysis of the economic impact of U.S. sanctions policy with 
respect to India and Pakistan; received ITC's annual report on 
the operation of the U.S. trade agreements; requested a study 
by the ITC on the civil aerostructures industry; requested that 
the ITC conduct a study of the economic impact of U.S. 
sanctions with respect to Cuba; received an ITC report 
providing a simplification of the Harmonized Tariff Schedule of 
the United States; requested a report from the ITC relating to 
pricing of prescription drugs by certain U.S. trading partners; 
and requested a report from the ITC on tariff and non-tariff 
barriers that impact trade in the processed food and beverage 
sectors.

    2. ADDITIONAL OVERSIGHT ACTIVITIES OF THE OVERSIGHT SUBCOMMITTEE

    1. Joint Hearings to Review Strategic Plans and Budget of 
the IRS.
    The Ways and Means Committee participated in joint hearings 
to review the strategic plans and budget of the IRS on May 25, 
1999 and May 3, 2000. The joint hearings were mandated by the 
IRS Restructuring and Reform Act of 1998 [P.L. 105-206] and 
included two Members from the majority and one Member from the 
minority from each of the House Committees on Ways and Means, 
Appropriations, and Government Reform and Senate Committees on 
Finance, Appropriations, and Governmental Affairs. Oversight 
Subcommittee Chairman Houghton, Subcommittee Ranking Minority 
Member Coyne, and Subcommittee Member Rob Portman represented 
the Committee on Ways and Means.
    2. Repeal of the Installment Method of Accounting for 
Accrual Basis Taxpayers.
    Action taken: The Subcommittee held a hearing on February 
29, 2000, to examine the effects of the repeal of the 
installment method of accounting for accrual basis taxpayers 
and to discuss possible regulatory and legislative solutions. 
On March 9, 2000, pursuant to H. Res. 434, the House adopted 
H.R. 3832, the ``Small Business Tax Fairness Act of 2000,'' to 
amend the Internal Revenue Code to repeal revisions to the Code 
(made by the ``Ticket to Work and Work Incentives Improvement 
Act of 1999'') which repealed the use of the installment method 
of accounting for accrual method taxpayers and modified the 
pledge rules of installment obligations. H.R. 5542, the 
``Taxpayer Relief Act of 2000,'' which was later incorporated 
into H.R. 2614, the conference report on the ``Minimum Wage Act 
of 2000,'' also repealed the use of the installment method of 
accounting for accrual method taxpayers and modified the pledge 
rules of installment obligations. The House passed the 
conference report on October 26, 2000.
    3. Disclosure of Political Activities by Tax-Exempt 
Organizations.
    Action taken: The Subcommittee held a hearing on June 20, 
2000, on proposals for enhanced public disclosure relating to 
political activities of tax-exempt organizations. On June 22, 
2000, the Committee ordered favorably reported H.R. 4717, the 
``Full and Fair Political Disclosure Act of 2000,'' to require 
the disclosure of political and lobbying activities by all tax-
exempt organizations permitted to engage in such activities. 
H.R. 4762, to amend the Internal Revenue Code of 1986 to 
require 527 organizations to disclose their political 
activities, subsequently passed the House on June 28 and the 
Senate on June 29, 2000, and was signed into law on July 1, 
2000 [P.L. 106-230].
    4. Transportation Infrastructure.
    Action taken: The Subcommittee held a hearing on July 25, 
2000, to review the effect of the Internal Revenue Code on 
transportation infrastructure. The testimony supported improved 
tax treatment of expenditures for transportation infrastructure 
such as H.R. 3700, the ``High Speed Rail Investment Act.'' The 
conference report on the ``Minimum Wage Act of 2000,'' H.R. 
2614, which passed the House on October 26, 2000, by a vote of 
237-174, provided for a credit to holders of qualified Amtrak 
bonds.
    5. Tax Code and New Economy.
    Action taken: The Subcommittee held hearings on September 
26 and 28, 2000, to examine the cost recovery rules for 
physical property, including a review of the Treasury 
Department's ``Report to Congress on Depreciation Recovery 
Periods and Methods''; the Federal tax treatment of research 
and development expenses; and the Federal tax treatment of the 
cost of maintaining a skilled workforce. The purpose of the 
hearing was to examine whether Federal tax laws have adequately 
kept pace with the changes in the economy in the advent of the 
information age and to consider possible solutions where they 
have not.
    6. Stock Options.
    Action taken: The Subcommittee held a hearing on October 
12, 2000, to examine the Federal tax treatment of employee 
stock option plans and to discuss recommendations to expand the 
types of stock option plans available to businesses and their 
employees.
    7. Field Investigations and Hearings.
    Action taken: The Subcommittee did not deem it necessary to 
hold field hearings during the 106th Congress.

 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 9, 2000, the Subcommittee held a hearing on the 
Unemployment Compensation (UC) system and the Family and 
Medical Leave Act. This hearing focused on a proposed rule 
issued by the U.S. Department of Labor to allow the use of UC 
funds to provide partial wage replacement to parents on leave 
following the birth or adoption of a child. A Subcommittee 
hearing on maintaining health coverage for families leaving the 
Temporary Assistance for Needy Families program for work was 
conducted on May 16, 2000. A joint hearing with the Committee 
on Education and the Workforce Subcommittee on Postsecondary 
Education, Training, and Life-Long Learning was held on June 
29, 2000, on One-Stop Job Centers. Witnesses included the U.S. 
General Accounting Office, the U.S. Department of Labor, State 
workforce boards, and State employment office administrators.

     4. additional oversight activities of the health subcommittee

    In addition to the activities detailed above, the 
Subcommittee on Health continued its investigations into 
several matters of importance to the Medicare program. Among 
these was a hearing on the Medicare Coverage and Appeals 
process as administered by the Health Care Financing 
Administration (HCFA), held on April 22, 1999. Testimony taken 
from this hearing was instrumental in the formulation of H.R. 
2356, the ``Medicare Patient Appeals Act of 1999,'' and H.R. 
4680, the ``Medicare Rx 2000 Act,'' as well as H.R. 5543, the 
``Medicare, Medicaid, and S-Chip Benefits Improvement and 
Protection Act of 2000.'' The Subcommittee also held two 
hearings on the subject of the confidentiality of medical 
records. The first hearing, held July 20, 1999, examined HCFA's 
current administrative procedures for protecting the 
confidentiality of health information pertaining to Medicare 
beneficiaries that is collected incident to the administration 
of Medicare. The second hearing, held February 17, 2000, 
examined the Administration's proposed regulation respecting 
the confidentiality of health information. Also, the 
Subcommittee considered a myriad of potential amendments to the 
Balanced Budget Act of 1997 in two separate hearings on October 
1, 1999, and July 25, 2000. The testimony at these hearings 
helped form the basis of H.R. 5543 and H.R. 3075.
    The Subcommittee also had several other hearings of vital 
interest to the Medicare program. Among these hearings were a 
July 1, 1999, hearing on the topic of Veterans' Subvention and 
a February 10, 2000, hearing on the Institute of Medicine 
report regarding Medical Errors in the Medicare Program.
    During the 106th Congress, the Subcommittee on Health also 
held a hearing on May 13, 1999, discussing Medicare ``self-
referral'' laws which helped form the basis for H.R. 2651, the 
``Physician Self-Referral Amendments of 1999.'' Additionally, 
two hearings were held regarding the topic of prescription drug 
coverage under the Medicare program. Held on February 15, 2000, 
and May 11, 2000, these hearings helped form the basis for H.R. 
4680, the ``Medicare Rx 2000 Act.''

 5. additional oversight activities of the social security subcommittee

    In addition to the activities detailed above, the Social 
Security Subcommittee held a hearing on April 11, 2000 to 
examine the Social Security Administration's (SSA) efforts to 
inform the public about the Social Security program. Possible 
changes to the Social Security statement (which is now sent to 
all workers age 25 and older each year) were discussed. 
Testimony was heard from Members of Congress, the Commissioner 
of Social Security, the U.S. General Accounting Office (GAO), 
and program experts.
    On June 27, 2000, the Subcommittee held a hearing on the 
Government Pension Offset (GPO). Testimony was heard from Rep. 
William Jefferson (who has introducedH.R. 1217, a bill that 
would reduce the GPO), SSA, the Congressional Budget Office, program 
experts, and representatives from Federal and State government employee 
associations. Witnesses discussed why the GPO was created, the effect 
it has on certain beneficiaries, and the effect of reducing or 
eliminating the GPO.
    On February 15, 2000, the Subcommittee held a hearing on 
improving Social Security work incentives. Testimony was heard 
from the Commissioner of Social Security, policy experts who 
have studied work disincentives within the Social Security 
program (including the retirement earnings test), and seniors 
affected by the retirement earnings test. On February 29, 2000, 
the Full Committee ordered favorably reported H.R. 5, ``the 
Senior Citizens Freedom to Work Act of 2000,'' as amended. The 
bill was signed into law on April 7, 2000.
    In addition to these hearings, Subcommittee Chairman E. 
Clay Shaw, Jr. has requested a GAO study regarding the use 
Social Security numbers in the public sector and how that use 
can be minimized.

        6. additional oversight activities of the full committee

    In addition to the activities detailed above, the Full 
Committee held a hearing on September 29, 1999 to examine 
Treasury's debt buyback proposal. On August 4, 1999, the U.S. 
Department of Treasury announced regulations (31 CFR Part 375) 
to allow Treasury to buy back outstanding debt before it 
matures. Treasury indicated that the prospect of large and 
sustained budget surpluses has created a need to examine new 
cash and debt management policies. This hearing focused on the 
potential costs and benefits of Treasury's debt buyback 
proposal and the effect such a proposal would have on the 
budget. In addition, the hearing explored Treasury's debt 
management goals and the policy issues posed by growing 
surpluses. Testimony was heard from the Treasury Department, 
the U.S. General Accounting Office, and other experts on 
financial markets and debt management.

      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, Imports 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 106th 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 insular possessions.
          (5) The bonded debt of the United States, subject to 
        the last sentence of clause 4(f). [The last sentence of 
        clause 4(f) requires the Committee on Ways and Means to 
        include in its annual report to the Committee on the 
        Budget a specific recommendation, made after holding 
        public hearings, as to the appropriate level of the 
        public debt that should 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 such 
        debt.]
          (6) Deposit of public monies.
          (7) Transportation of dutiable goods.
          (8) Tax exempt foundations and charitable trusts.
          (9) National Social Security (except health care and 
        facilities programs that are supported from general 
        revenues as opposed to payroll deductions and except 
        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 106th Congress can be outlined as 
follows:
          (a) Old-age, survivors, and disability insurance 
        (title II)--At present, there are approximately 154 
        million workers in employment covered by the program, 
        and as of December 1999, $386 billion in benefits were 
        being paid annually to 45 million individuals.
          (b) Medicare (title XVIII)--Provides hospital 
        insurance benefits to 33.6 million persons over the age 
        of 65 and to 5.3 million disabled persons. Voluntary 
        supplementary medical insurance is provided to 32.4 
        million aged persons and 4.6 million disabled persons. 
        Total program outlays under these programs were $212 
        billion in fiscal year 1999.
          (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 1999, 6.6 million 
        persons received federally administered benefits under 
        the SSI program. Of these 6.6 million persons, 
        approximately 1.3 million received benefits on the 
        basis of age, and 5.2 million on the basis of blindness 
        or disability. Total federally administered payments 
        during fiscal year 1999 amounted to approximately $30.9 
        billion, of which $26.8 billion were basic Federal 
        benefits and $3.3 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 dollars 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 December of 1999, about 2.4 million 
        families and 6.3 million individuals received benefits 
        from the TANF program. In fiscal year 1999, Federal 
        administrative expenditures totaled $2.7 billion for 
        the child support enforcement program. Child support 
        collections for that year totaled $15.8 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 2000 was $2.4 billion and $1.8 billion was 
        appropriated for fiscal year 2000. 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 2000, an estimated 
        $21.6 billion was paid in unemployment compensation 
        benefits, with approximately 7.0 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 2000, Federal expenditures for child 
        welfare services totaled $292 million. Federal 
        expenditures for foster care were approximately $4.5 
        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. There 
have been instances where the House has agreed to not deal 
directly with the issue by tabling a resolution.1,}2
---------------------------------------------------------------------------
    \1\ 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.]
    \2\ This was an instance where the Chairman of the Committee on 
Ways and Means raised a question of the privilege of the House pursuant 
to Article I, Section 7, of the U.S. Constitution on H.R. 4516, 
Legislative Branch Appropriations. The motion was laid on the table.

       BLUE SLIP RESOLUTIONS--97TH CONGRESS THROUGH 106TH 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)
------------------------------------------------------------------------
106th Congress:
    H. Res. 645, Mr. Crane, October 24,  On October 17, 2000, the Senate
     2000.                                passed S. 1109, the Bear
                                          Protection Act of 1999. This
                                          legislation would have
                                          conserved global bear
                                          populations by prohibiting the
                                          importation, exportation, and
                                          interstate trade of bear
                                          viscera and items, products,
                                          or substances containing, or
                                          labeled or advertised as
                                          containing, bear viscera. 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. 394, Mr. Weller, November    On November 3, 1999, the Senate
     18, 1999.                            passed S. 1232, Federal
                                          Erroneous Retirement Coverage
                                          Corrections Act. This
                                          legislation would have
                                          provided that no Federal
                                          retirement plan involved in
                                          the corrections under the bill
                                          would fail to be treated as a
                                          tax-qualified retirement plan
                                          by reason of the correction,
                                          and that any fund transfers or
                                          government contributions
                                          resulting from the corrections
                                          would have no impact on the
                                          tax liability of individuals.
                                          These changes constituted a
                                          revenue measure in the
                                          constitutional sense because
                                          they would have had a direct
                                          impact on Federal revenues.
    H. Res. 393, Mr. Weller, November    On February 24, 1999, the
     18, 1999.                            Senate passed S. 4, the
                                          Soldiers', Sailors', Airmen's,
                                          and Marines' Bill of Rights
                                          Act of 1999. The legislation
                                          would have allowed members of
                                          the Armed Forces to
                                          participate in the Federal
                                          Thrift Savings Program and to
                                          avoid the tax consequences
                                          that would otherwise have
                                          resulted from certain
                                          contributions in excess of the
                                          limitations imposed in the
                                          Internal Revenue Code. This
                                          proposed exemption therefore
                                          constituted a revenue measure
                                          in the constitutional sense
                                          because it would have had a
                                          direct impact on Federal
                                          revenues.
    H. Res. 249, Mr. Portman, July 16,   On May 20, 1999, the Senate
     1999.                                passed S. 254, the Violent and
                                          Repeat Juvenile Offender
                                          Accountability and
                                          Rehabilitation Act of 1999.
                                          The legislation would have had
                                          the effect of banning the
                                          import of large capacity
                                          ammunition feeding devices.
                                          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.
105th Congress:
    H. Res. 601, Mr. Crane, October 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, March 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, September    On June 30, 1996, the Senate
     28, 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, September   On September 25, 1996, the
     27, 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, April 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, March 21,    On February 1, 1996, the Senate                               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, October    On October 3, 1994, the Senate
     7, 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, August     On July 20, 1994, the Senate
     12, 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,       On August 1, 1991, the Senate
     February 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,       On February 20, 1991, the
     October 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, October 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 Vll 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,     On Apr. 21, 1983, the Senate
       June 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)(s) of the Rules of the House of 
Representatives. The jurisdiction of the Committee on Ways and 
Means under Rule X(1)(s) is protected through the exercise of 
Rule XXI(5)(a) which states:

          A bill or joint resolution carrying a tax or tariff 
        measure may not be reported by a committee not having 
        jurisdiction to report tax or tariff measures, and an 
        amendment in the House or proposed by the Senate 
        carrying a tax or tariff measure shall not be in order 
        during the consideration of a bill or joint resolution 
        reported by a committee not having that jurisdiction. A 
        point of order against a tax or tariff measure in such 
        a bill, joint resolution, or amendment thereto may be 
        raised at any time during pendency of that measure for 
        amendment.

    Based on the precedents of the House, especially those 
involving Rule XXI(5)(a), 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 (a) 
                           Chronological List


September 8, 1999

            H.R. 2684, Departments of Veterans Affairs and Housing and 
                    Urban Development Appropriations for 2000
    A point of order was raised against an amendment offered by 
Representative Edwards, which would have offset an increase in 
funding for veterans' health care by postponing the 
implementation of a capital gains tax cut. The chair ruled that 
the amendment constituted legislation in violation of Rule XXI, 
clause 2(c), and, in addition, constituted a tax measure in 
violation of Rule XXI, clause 5(a). The point of order was 
sustained, and the amendment ruled not in order. [106-1, p. 
H7923]

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 oforder 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 hips 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 
the amendment 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 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 allow 
the 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] 
underprovision 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 fee 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 of assess the 
manufacturer's excise tax on sporting goods. The point of order 
specifically stated that the term ``tax'' and ``tariff'' under 
House Rule XXI, Clause 5(b), included provisions such as these 
contained in the amendment which would result 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(b) and (c) 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 to curtail 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 51 Speakers who have served since 1789 through the end 
of the 106th 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 \3\
---------------------------------------------------------------------------
    \3\ 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 106th Congress on December 15, 2000, 
there had been referred to the Committee a total of 1762 bills, 
representing 25.3 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 106TH CONGRESSES
----------------------------------------------------------------------------------------------------------------
                                                                               Referred to
                                                           Introduced in    Committee on Ways      Percentage
                                                               House            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
106th Congress.........................................              6,942              1,762               25.3
----------------------------------------------------------------------------------------------------------------

                           B. Public Hearings

    In the course of the 106th Congress, the full Committee on 
Ways and Means held public hearings on a total of 23 days, 
including 15 days in the first session and 8 days in the second 
session. Many of these hearings dealt with major subjects 
including the President's fiscal year 2000 and 2001 budgets, 
fundamental tax reform, and reducing the tax burden. The full 
Committee also focused on such issues as legislation to cover 
prescription drugs under Medicare, U.S.-China bilateral trade 
agreement and the accession of China to the WTO, 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 
106th Congress.

  TABLE 2.--PUBLIC HEARINGS CONDUCTED BY THE FULL COMMITTEE ON WAYS AND
                                  MEANS
------------------------------------------------------------------------
                                                          Number of
                  Subject and date                  --------------------
                                                       Days    Witnesses
------------------------------------------------------------------------
1999:
    Outlook for the State of the U.S. Economy in            1          1
     1999, Jan. 20.................................
    Preserving and Strengthening Social Security,           1          3
     Jan. 21.......................................
    President's Fiscal Year 2000 Budget, Feb. 4....         1          1
    Social Security Reform Lessons Learned in Other         1          8
     Countries, Feb. 11............................
    President's Social Security Framework, Feb. 23.         1          8
    Year 2000 Conversion Efforts and Implications           1         27
     for Beneficiaries and Taxpayers, Feb. 24......
    Revenue Provisions in President's Fiscal Year           1         15
     2000 Budget, Mar. 10..........................
    Proposals Certified to Save Social Security,            2         16
     June 9, 10....................................
    Reducing the Tax Burden: I. Enhancing                   1         22
     Retirement and Health Security, June 16.......
    Reducing the Tax Burden: II. Providing Tax              1         30
     Relief to Strengthen the Family and Sustain a
     Strong Economy, June 23.......................
    Impact of U.S. Tax Rules on International               1         18
     Competitiveness, June 30......................
    Treasury's Debt Buyback Proposal, Sept. 29.....         1          4
    President's Social Security Legislation, Nov. 9         1          3
    Corporate Tax Shelters, Nov. 10................         1         11
                                                    --------------------
      Total for 1999...............................        15        167
                                                    ====================
2000:
    President's Fiscal Year 2001 Budget, Feb. 9....         1          1
    U.S.-China Bilateral Trade Agreement and the            1         19
     Accession of China to the WTO, Feb. 16........
    Future of the World Trade Organization, Mar. 30         1          6
    Fundamental Tax Reform, April 11, 12, 13.......         3         39
    Accession of China to the WTO, May 3...........         1         12
    Legislation to Cover Prescription Drugs Under           1         15
     Medicare, June 13.............................
                                                    --------------------
      Total for 2000...............................         8         92
                                                    ====================
      Total for both sessions......................        23        259
------------------------------------------------------------------------

    The five subcommittees of the Committee on Ways and Means 
were also very active in conducting public hearings during the 
106th 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
1999:
    U.S. Trade Relations with Sub-Saharan Africa,           1         16
     Feb. 3........................................
    Importance of Trade Negotiations in Fighting            2         10
     Foreign Protectionism, Feb. 11, Mar. 4........
    Steel Trade Issues, Feb. 25....................         1         24
    H.R. 984, the ``Caribbean and Central American          1         14
     Relief and Economic Stabilization Act,'' Mar.
     23............................................
    Trade Agency Budget Authorizations and Other            1         17
     Customs Issues, Apr. 13.......................
    Use and Effect of Unilateral Trade Sanctions,           1         14
     May 27........................................
    United States-China Trade Relations and the             1         19
     Possible Accession of China to the World Trade
     Organization, June 8..........................
    United States-Vietnam Trade Relations, June 17.         1         14
    United States Negotiating Objectives for the            1         21
     WTO Seattle Ministerial Meeting, Aug. 5.......
2000:
    Outcome of the WTO Ministerial in Seattle, Feb.         1         17
     8.............................................
    United States-Vietnam Trade Relations, June 15.         1          7
    Trade in African Diamonds, Sept. 12............         1         11
                                                    --------------------
      Total........................................        13        184
                                                    ====================
             SUBCOMMITTEE ON OVERSIGHT
1999:
    Annual Report of the Internal Revenue Service           1          3
     National Taxpayer Advocate, Feb. 10...........
    Incentives for Domestic Oil and Gas Production          1         10
     and Status of the Industry, Feb. 25...........
    Tax Treatment of Structured Settlements, Mar.           1          5
     18............................................
    Pension Issues, Mar. 23........................         1         13
    1999 Tax Return Filing Season and the IRS               1          5
     Budget for Fiscal Year 2000, Apr. 13..........
    U.S. Customs Service Passenger Inspection               1          6
     Operations, May 20............................
    Impact of Complexity in the Tax Code on                 1          8
     Individual Taxpayers and Small Businesses, May
     25............................................
    Current U.S. International Tax Regime, June 22.         1          7
    Work Opportunity Tax Credit, July 1............         1         12
    Implementation of the Internal Revenue Service          1          3
     Restructuring and Reform Act, July 22.........
    Impact of Tax Law on Land Use, Conservation,            1         18
     and Preservation, Sept. 30....................
2000:
    Penalty and Interest Provisions in the Internal         1          7
     Revenue Code, Jan. 27.........................
    Review the Repeal of the Installment Method of          1          4
     Accounting for Accrual Basis Taxpayers, Feb.
     29............................................
    Tax Incentives to Assist Distressed                     1          8
     Communities, Mar. 21..........................
    2000 Tax Return Filing Season and the IRS               1          5
     Budget for Fiscal Year 2001, Mar. 28..........
    Internet Tax Issues, May 16....................         1         13
    Disclosure of Political Activities of Tax-              1         12
     Exempt Organizations, June 20.................
    Complexity in Administration of Federal Tax             1          1
     Laws, June 29.................................
    Tax Treatment of Transportation Infrastructure,         1         11
     July 25.......................................
    Tax Code and the New Economy, Sept. 26, 28.....         2         15
    Employee Stock Option Plans, Oct. 12...........         1          5
                                                    --------------------
      Total........................................        22        171
                                                    ====================
               SUBCOMMITTEE ON HEALTH
1999:
    Management of the Medicare Program, Feb. 11....         1          5
    Report on Medicare Payment Policies, Mar. 2....         1          1
    Medicare+Choice Program, Mar. 18...............         1          7
    Medicare Coverage Decisions and Beneficiary             1          7
     Appeals, April 22.............................
    Medicare ``Self-Referral'' Laws, May 13........         1          6
    Uninsured Americans, June 15...................         1          4
    Medicare ``Veterans Subvention,'' July 1.......         1          4
    Confidentiality of Health Information, July 20.         1          7
    Strengthening Medicare for Future Generations,          1          5
     Sept. 22......................................
    Medicare Balanced Budget Act Refinements, Oct.          1          9
     1.............................................
2000:
    Medical Errors, Feb. 10........................         1          8
    Seniors' Access to Prescription Drug Benefits,          1          6
     Feb. 15.......................................
    Confidentiality of Patient Records, Feb. 17....         1          7
    Administration's Prescription Drug Proposal,            1          3
     May 11........................................
    Additional Medicare Refinements to the Balanced         1          7
     Budget Act of 1997, July 25...................
                                                    --------------------
      Total........................................        15         86
                                                    ====================
          SUBCOMMITTEE ON SOCIAL SECURITY
1999:
    Impacts of Current Social Security System, Feb.         3         24
     2, 3, 10......................................
    Investing in the Private Market, Mar. 3........         1          9
    Barriers Preventing Disability Beneficiaries            1          8
     From Returning to Work, Mar. 11...............
    Social Security's Goals and Criteria for                1          5
     Assessing Reforms, Mar. 25....................
    1999 Social Security Trustees' Report, Apr. 15.         1          2
    Y2K and Other Social Security Information               1          2
     Technology Issues, July 29....................
    Management of Disability Cases (held jointly            1          8
     with Subcommittee on Human Resources), Oct. 21
2000:
    Examine Social Security's Readiness for the             2         13
     Impending Wave of Baby Boomer Beneficiaries,
     Feb. 10, Mar. 16..............................
    Improving Social Security Work Incentives, Feb.         1         13
     15............................................
    Work Incentives for Blind and Disabled Social           1         11
     Security Beneficiaries, Mar. 23...............
    Social Security Program Integrity Activities,           1          2
     Mar. 30.......................................
    2000 Social Security Trustees' Annual Report,           1          2
     Apr. 6........................................
    Efforts to Inform the Public about Social               1         14
     Security, Apr. 11.............................
    Social Security Representative Payees, May 4...         1          7
    Use and Misuse of Social Security Numbers, May          2         14
     9, 11.........................................
    Processing of Attorney Fees by the Social               1          6
     Security Administration, June 14..............
    Social Security Government Pension Offset, June         1          8
     27............................................
    Challenges Facing Social Security Disability            1          7
     Programs in the 21st Century, July 13.........
    Protecting Privacy and Preventing Misuse of the         1          4
     Social Security Number, July 17...............
    Global Aging Crisis, Sept. 21..................         1          5
    Social Security Notices, Sept. 26..............         1          2
                                                    --------------------
      Total........................................        25        166
                                                    ====================
          SUBCOMMITTEE ON HUMAN RESOURCES
1999:
    Supplemental Security Income Fraud and Abuse,           1          6
     Feb. 3........................................
    Challenges Confronting Older Children Leaving           1         10
     Foster Care, Mar. 9...........................
    Federal Resources Available for Child Care,             1          8
     Mar. 16.......................................
    Child Protection Oversight, Apr. 2.............         1          8
    Fatherhood, Apr. 27............................         1         10
    Foster Care Independent Living, May 13.........         1          9
    Effects of Welfare Reform, May 27..............         1          9
    Reducing Nonmarital Births, June 29............         1         11
    Promoting Adoption and Other Permanent                  1          8
     Placements, July 20...........................
    Oversight of the Child Support Enforcement              1         11
     Program, Sept. 23.............................
    Fatherhood Legislation, Oct. 5.................         1         15
    Welfare Reform, Nov. 15........................         1          5
2000:
    Welfare Reform, Jan. 24........................         1          7
    Welfare Reform, Feb. 14........................         1          9
    Child Protection Review System, Feb. 17........         1          6
    Unemployment Compensation Reform, Feb. 29......         1         10
    Unemployment Compensation and the Family and            1          8
     Medical Leave Act, Mar. 9.....................
    H.R. 1488, the ``Hyde-Woolsey'' Child Support           1         10
     Bill, Mar. 16.................................
    Child Protection Issues, Mar. 23...............         1         12
    Health Coverage for Families Leaving Welfare,           1         10
     May 16........................................
    Child Support Enforcement, May 18..............         1         13
    ``One-Stop Job Centers,'' (held jointly with            1          5
     Subcommittee on Postsecondary Education,
     Training and Life-Long Learning, Committee on
     Education and the Workforce), June 29.........
    Increasing State Flexibility in Use of Federal          1          7
     Child Protection Funds, July 20...............
    Unemployment Compensation, Sept. 7.............         1          4
    H.R. 5292, the ``Flexible Funding for Child             1          6
     Protection Act of 2000,'' Oct. 3..............
                                                    --------------------
      Total........................................        25        217
------------------------------------------------------------------------

    As the foregoing statistics indicate, during the 106th 
Congress the full Committee and its five subcommittees held 
public hearings aggregating a grand total of 123 days, during 
which time 1,083 witnesses testified. There were four field 
hearings, three held by the Subcommittee on Human Resources in 
Erie, Pennsylvania; Riviera Beach, Florida; and Baltimore, 
Maryland; and one held by the Subcommittee on Social Security 
in Del Ray Beach, Florida.
    In addition, written comments were printed after having 
been requested and received by the full Committee on Joint 
Committee on taxation disclosure study; the Subcommittee on 
Oversight on recent recommendations on tax penalty and interest 
provisions; and the Subcommittee on Trade on the extension of 
unconditional normal trade relations to the Kyrgyz Republic, 
Albania, Armenia, Georgia, and Moldova, on the extension of 
normal trade relations to the Lao People's Democratic Republic, 
miscellaneous corrections to trade legislation and 
miscellaneous duty suspension bills, H.R. 3066, a bill to 
change customs rules-of-origin for certain textile products, 
technical corrections to U.S. trade laws and miscellaneous duty 
suspension bills, and H.R. 4782, extending unconditional normal 
trade relations to Georgia.

                           C. Markup Sessions

    With respect to markup or business sessions during the 
106th Congress, the full Committee and its five subcommittees 
were also very actively engaged. The full Committee held such 
sessions on 32 working days, usually both morning and afternoon 
sessions, and the subcommittees an aggregate of 11 working 
days, making a grand total of 43 working days of markup or 
business sessions for the full Committee and its subcommittees 
during the 106th Congress.

D. Number and Final Status of Bills Reported From the Committee on Ways 
                    and Means in the 106th Congress

    During the 106th Congress, the Committee reported to the 
House a total of 37 bills, 32 favorably and 5 adversely. Fifty 
eight bills containing provisions within the purview of the 
Committee were passed by the House and 16 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 106th 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.....................  1881.
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 to 2001.
----------------------------------------------------------------------------------------------------------------

           B. Tables Showing Past Membership of the Committee


1. MEMBERS OF THE COMMITTEE ON WAYS AND MEANS FROM THE 1ST THROUGH THE 
                        106TH CONGRESS, BY STATE

Alabama:                                                    Congress(es)
    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
    Scott McInnis.......................................            103-
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-
    Mark Foley..........................................            104-
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
    Ron Lewis...........................................            104-
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.........................................         \4\ 104
---------------------------------------------------------------------------
    \4\ 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..................................   \5\ 103, 104-
---------------------------------------------------------------------------
    \5\ Appointed January 25, 1996.
---------------------------------------------------------------------------
    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.........................................          93-106
    J.J. Pickle.........................................          94-103
    Kent R. Hance.......................................           97-98
    Michael A. Andrews..................................          99-103
    Sam Johnson.........................................            104-
    Greg Laughlin.......................................        \6\ 104-
---------------------------------------------------------------------------
    \6\ Appointed July 10, 1995.
---------------------------------------------------------------------------
    Lloyd Doggett.......................................            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...............................              51
    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-
                2. COMMITTEE MEMBERSHIP, 106TH CONGRESS

                      Committee on Ways and Means
                       one hundred sixth congress
                      BILL ARCHER, Texas, Chairman

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

                                  
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