II

104TH CONGRESS

1ST SESSION H.R. 2586

IN THE SENATE OF THE UNITED STATES

NOVEMBER 9, 1995

Received

AN ACT

To provide for a temporary increase in the public debt limit,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. TEMPORARY INCREASE IN PUBLIC DEBT LIMIT.

2 Subsection (b) of section 3101 of title 31, United

3 States Code, is amended by adding at the end the follow4 ing new sentence: ‘‘During the period after the date of

5 the enactment of this sentence, the preceding sentence

6 shall be applied by substituting for the dollar amount con7 tained therein—

8 ‘‘(1) ‘$4,950,000,000,000’ for the portion of

9 such period before December 13, 1995, and

10 ‘‘(2) ‘$4,800,000,000,000’ after December 12,

11 1995.’’

12 SEC. 2. APPLICABILITY OF PUBLIC DEBT LIMIT TO FED13 ERAL TRUST FUNDS AND OTHER FEDERAL

14 ACCOUNTS.

15 (a) PROTECTION OF FEDERAL FUNDS.—Notwith16 standing any other provision of law—

17 (1) no officer or employee of the United States

18 may—

19 (A) delay the deposit of any amount into

20 (or delay the credit of any amount to) any Fed21 eral fund or otherwise vary from the normal

22 terms, procedures, or timing for making such

23 deposits or credits, or

24 (B) refrain from the investment in public

25 debt obligations of amounts in any Federal

26 fund,
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1 if a purpose of such action or inaction is to not in2 crease the amount of outstanding public debt obliga3 tions, and

4 (2) no officer or employee of the United States

5 may disinvest amounts in any Federal fund which

6 are invested in public debt obligations if a purpose

7 of the disinvestment is to reduce the amount of out8 standing public debt obligations.

9 (b) PROTECTION OF BENEFITS AND EXPENDITURES

10 FOR ADMINISTRATIVE EXPENSES.—

11 (1) IN GENERAL.—Notwithstanding subsection

12 (a), during any period for which cash benefits or ad13 ministrative expenses would not otherwise be payable

14 from a covered benefits fund by reason of an inabil15 ity to issue further public debt obligations because

16 of the applicable public debt limit, public debt obli17 gations held by such covered benefits fund shall be

18 sold or redeemed only for the purpose of making

19 payment of such benefits or administrative expenses

20 and only to the extent cash assets of the covered

21 benefits fund are not available from month to month

22 for making payment of such benefits or administra23 tive expenses.

24 (2) ISSUANCE OF CORRESPONDING DEBT.—For

25 purposes of undertaking the sale or redemption of
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1 public debt obligations held by a covered benefits

2 fund pursuant to paragraph (1), the Secretary of the

3 Treasury may issue corresponding public debt obli4 gations to the public, in order to obtain the cash

5 necessary for payment of benefits or administrative

6 expenses from such covered benefits fund, notwith7 standing the public debt limit.

8 (3) ADVANCE NOTICE OF SALE OR REDEMP9 TION.—Not less than 3 days prior to the date on

10 which, by reason of the public debt limit, the Sec11 retary of the Treasury expects to undertake a sale

12 or redemption authorized under paragraph (1), the

13 Secretary of the Treasury shall report to each House

14 of the Congress and to the Comptroller General of

15 the United States regarding the expected sale or re16 demption. Upon receipt of such report, the Comp17 troller General shall review the extent of compliance

18 with subsection (a) and paragraphs (1) and (2) of

19 this subsection and shall issue such findings and rec20 ommendations to each House of the Congress as the

21 Comptroller General considers necessary and appro22 priate.

23 (c) PUBLIC DEBT OBLIGATION.—For purposes of

24 this section, the term ‘‘public debt obligation’’ means any
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1 obligation subject to the public debt limit established

2 under section 3101 of title 31, United States Code.

3 (d) FEDERAL FUND.—For purposes of this section,

4 the term ‘‘Federal fund’’ means any Federal trust fund

5 or Government account established pursuant to Federal

6 law to which the Secretary of the Treasury has issued or

7 is expressly authorized by law directly to issue obligations

8 under chapter 31 of title 31, United States Code, in re9 spect of public money, money otherwise required to be de10 posited in the Treasury, or amounts appropriated.

11 (e) COVERED BENEFITS FUND.—For purposes of

12 subsection (b), the term ‘‘covered benefits fund’’ means

13 any Federal fund from which cash benefits are payable

14 by law in the form of retirement benefits, separation pay15 ments, life or disability insurance benefits, or dependent’s

16 or survivor’s benefits, including (but not limited to) the

17 following:

18 (1) the Federal Old-Age and Survivors Insur19 ance Trust Fund;

20 (2) the Federal Disability Insurance Trust

21 Fund;

22 (3) the Civil Service Retirement and Disability

23 Fund;

24 (4) the Government Securities Investment

25 Fund;
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1 (5) the Department of Defense Military Retire2 ment Fund;

3 (6) the Unemployment Trust Fund;

4 (7) each of the railroad retirement funds and

5 accounts;

6 (8) the Department of Defense Education Ben7 efits Fund and the Post-Vietnam Era Veterans Edu8 cation Fund; and

9 (9) the Black Lung Disability Trust Fund.

10 SEC. 3. CONFORMING AMENDMENTS.

11 Subsections (j), (k), and (l) of section 8348 of title

12 5, United States Code, and subsections (g) and (h) of sec13 tion 8438 of such title are hereby repealed.

14 SEC. 4. COMMITMENT TO A SEVEN–YEAR BALANCED BUDG15 ET.

16 (a) With the enactment of this Act the President

17 and the Congress commit to enacting legislation in cal18 endar year 1995 to achieve a balanced budget, as scored

19 by the non-partisan Congressional Budget Office, not

20 later than the fiscal year 2002.

21 (b) The Congress affirms that it will not enact legis22 lation providing for a further increase in the permanent

23 statutory limit on the public debt unless the President

24 signs into law the balanced budget legislation referred to

25 in subsection (a).
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1 SEC. 5. MEDICARE COVERAGE OF CERTAIN ANTI-CANCER

2 DRUG TREATMENTS.

3 (a) COVERAGE OF CERTAIN SELF-ADMINISTERED

4 ANTICANCER DRUGS.—Section 1861(s)(2)(Q) of the So5 cial Security Act (42 U.S.C. 1395x(s)(2)(Q)) is amend6 ed—

7 (1) by striking ‘‘(Q)’’ and inserting ‘‘(Q)(i)’’; and

8 (2) by striking the semicolon at the end and in9 serting ‘‘, and’’; and

10 (3) by adding at the end the following:

11 ‘‘(ii) an oral drug (which is approved by the Federal

12 Food and Drug Administration) prescribed for use as an

13 anticancer nonsteroidal antiestrogen for the treatment of

14 breast cancer or nonsteroidal antiandrogen agent for the

15 treatment of prostate cancer;’’.

16 (b) UNIFORM COVERAGE OF ANTICANCER DRUGS IN

17 ALL SETTINGS.—Section 1861(t)(2)(A) of such Act (42

18 U.S.C. 1395x(t)(2)(A)) is amended by adding (including

19 a nonsteroidal antiestrogen or nonsteroidal antiandrogen

20 regimen)’’ after ‘‘regimen’’.

21 (c) CONFORMING AMENDMENT.—Section

22 1834(j)(5)(F)(iv) of such Act (42 U.S.C.

23 1395m(j)(5)(F)(iv)) is amended by striking ‘‘prescribed

24 for use’’ and all that follows through ‘‘1861(s)(2)(Q))’’

25 and inserting ‘‘described in section 1861(s)(2)(Q))’’.
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to drugs furnished on or after the

3 date of the enactment of this section.

4 TITLE I—HABEAS CORPUS REFORM

5 SEC. 101. FILING DEADLINES.

6 Section 2244 of title 28, United States Code, is

7 amended by adding at the end the following new sub8 section:

9 ‘‘(d)(1) A 1-year period of limitation shall apply to

10 an application for a write of habeas corpus by a person

11 in custody pursuant to the judgment of a State court. The

12 limitation period shall run from the latest of—

13 ‘‘(A) the date on which the judgment became

14 final by the conclusion of direct review or the expira15 tion of the time for seeking such review;

16 ‘‘(B) the date on which the impediment to filing

17 an application created by State action in violation of

18 the Constitution or laws of the United States is re19 moved, if the applicant was prevented from filing by

20 such State action;

21 ‘‘(C) the date on which the constitutional right

22 asserted was initially recognized by the Supreme

23 Court, if the right has been newly recognized by the

24 Supreme Court and made retroactively applicable to

25 cases on collateral review; or
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1 ‘‘(D) the date on which the factual predicate of

2 the claim or claims presented could have been dis3 covered through the exercise of due diligence.

4 ‘‘(2) The time during which a properly filed applica5 tion for State post-conviction or other collateral review

6 with respect to the pertinent judgment or claim shall not

7 be counted toward any period of limitation under this sub8 section.’’.

9 SEC. 102. APPEAL.

10 Section 2253 of title 28, United States Code, is

11 amended to read as follows:

12 ‘‘§ 2253. Appeal

13 ‘‘(a) In a habeas corpus proceeding or a proceeding

14 under section 2255 before a district judge, the final order

15 shall be subject to review, on appeal, by the court of ap16 peals for the circuit in which the proceeding is held.

17 ‘‘(b) There shall be no right of appeal from a final

18 order in a proceeding to test the validity of a warrant to

19 remove to another district or place for commitment or trial

20 a person charged with a criminal offense against the Unit21 ed States, or to test the validity of such person’s detention

22 pending removal proceedings.

23 ‘‘(c)(1) Unless a circuit justice or judge issues a cer24 tificate of appealability, an appeal may not be taken to

25 the court of appeals from—
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1 ‘‘(A) the final order in a habeas corpus proceed2 ing in which the detention complained of arises out

3 of process issued by a State court; or

4 ‘‘(B) the final order in a proceeding under sec5 tion 2255.

6 ‘‘(2) A certificate of appealability may issue under

7 paragraph (1) only if the applicant has made a substantial

8 showing of the denial of a constitutional right.

9 ‘‘(3) The certificate of appealability under paragraph

10 (1) shall indicate which specific issue or issues satisfy the

11 showing required by paragraph (2).’’.

12 SEC. 103. AMENDMENT OF FEDERAL RULES OF APPELLATE

13 PROCEDURE.

14 Rule 22 of the Federal Rules of Appellate Procedure

15 is amended to read as follows:

16 ‘‘Rule 22. Habeas corpus and section 2255 proceed17 ings

18 ‘‘(a) APPLICATION FOR THE ORIGINAL WRIT.—An

19 application for a writ of habeas corpus shall be made to

20 the appropriate district court. If application is made to

21 a circuit judge, the application shall be transferred to the

22 appropriate district court. If an application is made to or

23 transferred to the district court and denied, renewal of the

24 application before a circuit judge shall not be permitted.

25 The applicant may, pursuant to section 2253 of title 28,
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1 United States Code, appeal to the appropriate court of ap2 peals from the order of the district court denying the writ.

3 ‘‘(b) CERTIFICATE OF APPEALABILITY.—In a habeas

4 corpus proceeding in which the detention complained of

5 arises out of process issued by a State court, an appeal

6 by the applicant for the writ may not proceed unless a

7 district or a circuit judge issues a certificate of

8 appealability pursuant to section 2253(c) of title 28, Unit9 ed States Code. If an appeal is taken by the applicant,

10 the district judge who rendered the judgment shall either

11 issue a certificate of appealability or state the reasons why

12 such a certificate should not issue. The certificate or the

13 statement shall be forwarded to the court of appeals with

14 the notice of appeal and the file of the proceedings in the

15 district court. If the district judge has denied the certifi16 cate, the applicant for the writ may then request issuance

17 of the certificate by a circuit judge. If such a request is

18 addressed to the court of appeals, it shall be deemed ad19 dressed to the judges thereof and shall be considered by

20 a circuit judge or judges as the court deems appropriate.

21 If no express request for a certificate is filed, the notice

22 of appeal shall be deemed to constitute a request ad23 dressed to the judges of the court of appeals. If an appeal

24 is taken by a State or its representative, a certificate of

25 appealability is not required.’’.
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1 SEC. 104. SECTION 2254 AMENDMENTS.

2 Section 2254 of title 28, United States Code, is

3 amended—

4 (1) by amending subsection (b) to read as fol5 lows:

6 ‘‘(b)(1) An application for a writ of habeas corpus

7 on behalf of a person in custody pursuant to the judgment

8 of a State court shall not be granted unless it appears

9 that—

10 ‘‘(A) the applicant has exhausted the remedies

11 available in the courts of the State; or

12 ‘‘(B)(i) there is an absence of available State

13 corrective process; or

14 ‘‘(ii) circumstances exist that render such proc15 ess ineffective to protect the rights of the applicant.

16 ‘‘(2) An application for a writ of habeas corpus may

17 be denied on the merits, notwithstanding the failure of the

18 applicant to exhaust the remedies available in the courts

19 of the State.

20 ‘‘(3) A State shall not be deemed to have waived the

21 exhaustion requirement or be estopped from reliance upon

22 the requirement unless the State, through counsel, ex23 pressly waives the requirement.’’;

24 (2) by redesignating subsections (d), (e), and

25 (f) as subsections (e), (f), and (g), respectively;
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1 (3) by inserting after subsection (c) the follow2 ing new subsection:

3 ‘‘(d) An application for a writ of habeas corpus on

4 behalf of a person in custody pursuant to the judgment

5 of a State court shall not be granted with respect to any

6 claim that was adjudicated on the merits in State court

7 proceedings unless the adjudication of the claim—

8 ‘‘(1) resulted in a decision that was contrary to,

9 or involved an unreasonable application of, clearly

10 established Federal law, as determined by the Su11 preme Court of the United States; or

12 ‘‘(2) resulted in a decision that was based on an

13 unreasonable determination of the facts in light of

14 the evidence presented in the State court proceed15 ing.’’;

16 (4) by amending subsection (e), as redesignated

17 by paragraph (2), to read as follows:

18 ‘‘(e)(1) In a proceeding instituted by an application

19 for a writ of habeas corpus by a person in custody pursu20 ant to the judgment of a State court, a determination of

21 a factual issue made by a State court shall be presumed

22 to be correct. The applicant shall have the burden of re23 butting the presumption of correctness by clear and con24 vincing evidence.
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1 ‘‘(2) If the applicant has failed to develop the factual

2 basis of a claim in State court proceedings, the court shall

3 not hold an evidentiary hearing on the claim unless the

4 applicant shows that—

5 ‘‘(A) the claim relies on—

6 ‘‘(i) a new rule of constitutional law, made

7 retroactive to cases on collateral review by the

8 Supreme Court, that was previously unavail9 able; or

10 ‘‘(ii) a factual predicate that could not

11 have been previously discovered through the ex12 ercise of due diligence; and

13 ‘‘(B) the facts underlying the claim would be

14 sufficient to establish by clear and convincing evi15 dence that but for constitutional error, no reasonable

16 factfinder would have found the applicant guilty of

17 the underlying offense.’’; and

18 (5) by adding at the end the following new sub19 sections:

20 ‘‘(h) Except as provided in title 21, United States

21 Code, section 848, in all proceedings brought under this

22 section, and any subsequent proceedings on review, the

23 court may appoint counsel for an applicant who is or be24 comes financially unable to afford counsel, except as pro25 vided by a rule promulgated by the Supreme Court pursu-
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1 ant to statutory authority. Appointment of counsel under

2 this section shall be governed by section 3006A of title

3 18.

4 ‘‘(i) The ineffectiveness or incompetence of counsel

5 during Federal or State collateral post-conviction proceed6 ings shall not be a ground for relief in a proceeding arising

7 under section 2254.’’.

8 SEC. 105. SECTION 2255 AMENDMENTS.

9 Section 2255 of title 28, United States Code, is

10 amended—

11 (1) by striking the second and fifth undesig12 nated paragraphs; and

13 (2) by adding at the end the following new un14 designated paragraphs:

15 ‘‘A 1-year period of limitation shall apply to a motion

16 under this section. The limitation period shall run from

17 the latest of—

18 ‘‘(1) the date on which the judgment of convic19 tion becomes final;

20 ‘‘(2) the date on which the impediment to mak21 ing a motion created by governmental action in vio22 lation of the Constitution or laws of the United

23 States is removed, if the movant was prevented from

24 making a motion by such governmental action;
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1 ‘‘(3) the date on which the right asserted was

2 initially recognized by the Supreme Court, if that

3 right has been newly recognized by the Supreme

4 Court and made retroactively applicable to cases on

5 collateral review; or

6 ‘‘(4) the date on which the facts supporting the

7 claim or claims presented could have been discovered

8 through the exercise of due diligence.

9 ‘‘Except as provided in title 21, United States Code,

10 section 848, in all proceedings brought under this section,

11 and any subsequent proceedings on review, the court may

12 appoint counsel for a movant who is or becomes financially

13 unable to afford counsel shall be in the discretion of the

14 court, except as provided by a rule promulgated by the

15 Supreme Court pursuant to statutory authority. Appoint16 ment of counsel under this section shall be governed by

17 section 3006A of title 18.

18 ‘‘A second or successive motion must be certified as

19 provided in section 2244 by a panel of the appropriate

20 court of appeals to contain—

21 ‘‘(1) newly discovered evidence that, if proven

22 and viewed in light of the evidence as a whole, would

23 be sufficient to establish by clear and convincing evi24 dence that no reasonable factfinder would have

25 found the movant guilty of the offense; or
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1 ‘‘(2) a new rule of constitutional law, made ret2 roactive to cases on collateral review by the Supreme

3 Court, that was previously unavailable.’’.

4 SEC. 106. LIMITS ON SECOND OR SUCCESSIVE APPLICA5 TIONS.

6 (a) CONFORMING AMENDMENT TO SECTION

7 2244(a).—Section 2244(a) of title 28, United States

8 Code, is amended by striking ‘‘and the petition’’ and all

9 that follows through ‘‘by such inquiry.’’ and inserting ‘‘,

10 except as provided in section 2255.’’.

11 (b) LIMITS ON SECOND OR SUCCESSIVE APPLICA12 TIONS.—Section 2244(b) of title 28, United States Code,

13 is amended to read as follows:

14 ‘‘(b)(1) A claim presented in a second or successive

15 habeas corpus application under section 2254 that was

16 presented in a prior application shall be dismissed.

17 ‘‘(2) A claim presented in a second or successive ha18 beas corpus application under section 2254 that was not

19 presented in a prior application shall be dismissed un20 less—

21 ‘‘(A) the applicant shows that the claim relies

22 on a new rule of constitutional law, made retroactive

23 to cases on collateral review by the Supreme Court,

24 that was previously unavailable; or
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1 ‘‘(B)(i) the factual predicate for the claim could

2 not have been discovered previously through the ex3 ercise of due diligence; and

4 ‘‘(ii) the facts underlying the claim, if proven

5 and viewed in light of the evidence as a whole, would

6 be sufficient to establish by clear and convincing evi7 dence that, but for constitutional error, no reason8 able factfinder would have found the applicant guilty

9 of the underlying offense.

10 ‘‘(3)(A) Before a second or successive application per11 mitted by this section is filed in the district court, the ap12 plicant shall move in the appropriate court of appeals for

13 an order authorizing the district court to consider the ap14 plication.

15 ‘‘(B) A motion in the court of appeals for an order

16 authorizing the district court to consider a second or suc17 cessive application shall be determined by a three-judge

18 panel of the court of appeals.

19 ‘‘(C) The court of appeals may authorize the filing

20 of a second or successive application only if it determines

21 that the application makes a prima facie showing that the

22 application satisfies the requirements of this subsection.

23 ‘‘(D) The court of appeals shall grant or deny the

24 authorization to file a second or successive application not

25 later than 30 days after the filing of the motion.
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1 ‘‘(E) The grant or denial of an authorization by a

2 court of appeals to file a second or successive application

3 shall not be appealable and shall not be the subject of a

4 petition for rehearing or for a writ of certiorari.

5 ‘‘(4) A district court shall dismiss any claim pre6 sented in a second or successive application that the court

7 of appeals has authorized to be filed unless the applicant

8 shows that the claim satisfies the requirements of this sec9 tion.’’.

10 SEC. 107. DEATH PENALTY LITIGATION PROCEDURES.

11 (a) ADDITION OF CHAPTER TO TITLE 28, UNITED

12 STATES CODE.—Title 28, United States Code, is amended

13 by inserting after chapter 153 the following new chapter:

14 ‘‘CHAPTER 154—SPECIAL HABEAS CORPUS

15 PROCEDURES IN CAPITAL CASES

‘‘Sec.

‘‘2261. Prisoners in State custody subject to capital sentence; appointment of

counsel; requirement of rule of court or statute; procedures for

appointment.

‘‘2262. Mandatory stay of execution; duration; limits on stays of execution; successive petitions.

‘‘2263. Filing of habeas corpus application; time requirements; tolling rules.

‘‘2264. Scope of Federal review; district court adjudications.

‘‘2265. Application to State unitary review procedure.

‘‘2266. Limitation periods for determining applications and motions.
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1 ‘‘§ 2261. Prisoners in State custody subject to capital

2 sentence; appointment of counsel; re3 quirement of rule of court or statute; pro4 cedures for appointment

5 ‘‘(a) This chapter shall apply to cases arising under

6 section 2254 brought by prisoners in State custody who

7 are subject to a capital sentence. It shall apply only if the

8 provisions of subsections (b) and (c) are satisfied.

9 ‘‘(b) This chapter is applicable if a State establishes

10 by statute, rule of its court of last resort, or by another

11 agency authorized by State law, a mechanism for the ap12 pointment, compensation, and payment of reasonable liti13 gation expenses of competent counsel in State post-convic14 tion proceedings brought by indigent prisoners whose cap15 ital convictions and sentences have been upheld on direct

16 appeal to the court of last resort in the State or have oth17 erwise become final for State law purposes. The rule of

18 court or statute must provide standards of competency for

19 the appointment of such counsel.

20 ‘‘(c) Any mechanism for the appointment, compensa21 tion, and reimbursement of counsel as provided in sub22 section (b) must offer counsel to all State prisoners under

23 capital sentence and must provide for the entry of an

24 order by a court of record—

25 ‘‘(1) appointing one or more counsels to rep26 resent the prisoner upon a finding that the prisoner
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1 is indigent and accepted the offer or is unable com2 petently to decide whether to accept or reject the

3 offer;

4 ‘‘(2) finding, after a hearing if necessary, that

5 the prisoner rejected the offer of counsel and made

6 the decision with an understanding of its legal con7 sequences; or

8 ‘‘(3) denying the appointment of counsel upon

9 a finding that the prisoner is not indigent.

10 ‘‘(d) No counsel appointed pursuant to subsections

11 (b) and (c) to represent a State prisoner under capital

12 sentence shall have previously represented the prisoner at

13 trial or on direct appeal in the case for which the appoint14 ment is made unless the prisoner and counsel expressly

15 request continued representation.

16 ‘‘(e) The ineffectiveness or incompetence of counsel

17 during State or Federal post-conviction proceedings in a

18 capital case shall not be a ground for relief in a proceeding

19 arising under section 2254. This limitation shall not pre20 clude the appointment of different counsel, on the court’s

21 own motion or at the request of the prisoner, at any phase

22 of State or Federal post-conviction proceedings on the

23 basis of the ineffectiveness or incompetence of counsel in

24 such proceedings.
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1 ‘‘§ 2262. Mandatory stay of execution; duration; limits

2 on stays of execution; successive peti3 tions

4 ‘‘(a) Upon the entry in the appropriate State court

5 of record of an order under section 2261(c), a warrant

6 or order setting an execution date for a State prisoner

7 shall be stayed upon application to any court that would

8 have jurisdiction over any proceedings filed under section

9 2254. The application shall recite that the State has in10 voked the post-conviction review procedures of this chapter

11 and that the scheduled execution is subject to stay.

12 ‘‘(b) A stay of execution granted pursuant to sub13 section (a) shall expire if—

14 ‘‘(1) a State prisoner fails to file a habeas cor15 pus application under section 2254 within the time

16 required in section 2263;

17 ‘‘(2) before a court of competent jurisdiction, in

18 the presence of counsel, unless the prisoner has com19 petently and knowingly waived such counsel, and

20 after having been advised of the consequences, a

21 State prisoner under capital sentence waives the

22 right to pursue habeas corpus review under section

23 2254; or

24 ‘‘(3) a State prisoner files a habeas corpus peti25 tion under section 2254 within the time required by

26 section 2263 and fails to make a substantial showing
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1 of the denial of a Federal right or is denied relief

2 in the district court or at any subsequent stage of

3 review.

4 ‘‘(c) If one of the conditions in subsection (b) has

5 occurred, no Federal court thereafter shall have the au6 thority to enter a stay of execution in the case, unless the

7 court of appeals approves the filing of a second or succes8 sive application under section 2244(b).

9 ‘‘§ 2263. Filing of habeas corpus application; time re10 quirements; tolling rules

11 ‘‘(a) Any application under this chapter for habeas

12 corpus relief under section 2254 must be filed in the ap13 propriate district court not later than 180 days after final

14 State court affirmance of the conviction and sentence on

15 direct review or the expiration of the time for seeking such

16 review.

17 ‘‘(b) The time requirements established by subsection

18 (a) shall be tolled—

19 ‘‘(1) from the date that a petition for certiorari

20 is filed in the Supreme Court until the date of final

21 disposition of the petition if a State prisoner files

22 the petition to secure review by the Supreme Court

23 of the affirmance of a capital sentence on direct re24 view by the court of last resort of the State or other

25 final State court decision on direct review;
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1 ‘‘(2) from the date on which the first petition

2 for post-conviction review or other collateral relief is

3 filed until the final State court disposition of such

4 petition; and

5 ‘‘(3) during an additional period not to exceed

6 30 days, if—

7 ‘‘(A) a motion for an extension of time is

8 filed in the Federal district court that would

9 have jurisdiction over the case upon the filing

10 of a habeas corpus application under section

11 2254; and

12 ‘‘(B) a showing of good cause is made for

13 the failure to file the habeas corpus application

14 within the time period established by this sec15 tion.

16 ‘‘§ 2264. Scope of Federal review; district court adju17 dications

18 ‘‘(a) Whenever a State prisoner under capital sen19 tence files a petition for habeas corpus relief to which this

20 chapter applies, the district court shall only consider a

21 claim or claims that have been raised and decided on the

22 merits in the State courts, unless the failure to raise the

23 claim properly is—

24 ‘‘(1) the result of State action in violation of

25 the Constitution or laws of the United States;
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1 ‘‘(2) the result of the Supreme Court recogni2 tion of a new Federal right that is made retro3 actively applicable; or

4 ‘‘(3) based on a factual predicate that could not

5 have been discovered through the exercise of due

6 diligence in time to present the claim for State or

7 Federal post-conviction review.

8 ‘‘(b) Following review subject to subsections (a), (d),

9 and (e) of section 2254, the court shall rule on the claims

10 properly before it.

11 ‘‘§ 2265. Application to State unitary review proce12 dure

13 ‘‘(a) For purposes of this section, a ‘unitary review’

14 procedure means a State procedure that authorizes a per15 son under sentence of death to raise, in the course of di16 rect review of the judgment, such claims as could be raised

17 on collateral attack. This chapter shall apply, as provided

18 in this section, in relation to a State unitary review proce19 dure if the State establishes by rule of its court of last

20 resort or by statute a mechanism for the appointment,

21 compensation, and payment of reasonable litigation ex22 penses of competent counsel in the unitary review proceed23 ings, including expenses relating to the litigation of collat24 eral claims in the proceedings. The rule of court or statute
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1 must provide standards of competency for the appoint2 ment of such counsel.

3 ‘‘(b) To qualify under this section, a unitary review

4 procedure must include an offer of counsel following trial

5 for the purpose of representation on unitary review, and

6 entry of an order, as provided in section 2261(c), concern7 ing appointment of counsel or waiver or denial of appoint8 ment of counsel for that purpose. No counsel appointed

9 to represent the prisoner in the unitary review proceedings

10 shall have previously represented the prisoner at trial in

11 the case for which the appointment is made unless the

12 prisoner and counsel expressly request continued represen13 tation.

14 ‘‘(c) Sections 2262, 2263, 2264, and 2266 shall apply

15 in relation to cases involving a sentence of death from any

16 State having a unitary review procedure that qualifies

17 under this section. References to State ‘post-conviction re18 view’ and ‘direct review’ in such sections shall be under19 stood as referring to unitary review under the State proce20 dure. The reference in section 2262(a) to ‘an order under

21 section 2261(c)’ shall be understood as referring to the

22 post-trial order under subsection (b) concerning represen23 tation in the unitary review proceedings, but if a tran24 script of the trial proceedings is unavailable at the time

25 of the filing of such an order in the appropriate State
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1 court, then the start of the 180-day limitation period

2 under section 2263 shall be deferred until a transcript is

3 made available to the prisoner or counsel of the prisoner.

4 ‘‘§ 2266. Limitation periods for determining applica5 tions and motions

6 ‘‘(a) The adjudication of any application under sec7 tion 2254 that is subject to this chapter, and the adjudica8 tion of any motion under section 2255 by a person under

9 sentence of death, shall be given priority by the district

10 court and by the court of appeals over all noncapital mat11 ters.

12 ‘‘(b)(1)(A) A district court shall render a final deter13 mination and enter a final judgment on any application

14 for a writ of habeas corpus brought under this chapter

15 in a capital case not later than 180 days after the date

16 on which the application is filed.

17 ‘‘(B) A district court shall afford the parties at least

18 120 days in which to complete all actions, including the

19 preparation of all pleadings and briefs, and if necessary,

20 a hearing, prior to the submission of the case for decision.

21 ‘‘(C)(i) A district court may delay for not more than

22 one additional 30-day period beyond the period specified

23 in subparagraph (A), the rendering of a determination of

24 an application for a writ of habeas corpus if the court is25 sues a written order making a finding, and stating the
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1 reasons for the finding, that the ends of justice that would

2 be served by allowing the delay outweigh the best interests

3 of the public and the applicant in a speedy disposition of

4 the application.

5 ‘‘(ii) The factors, among others, that a court shall

6 consider in determining whether a delay in the disposition

7 of an application is warranted are as follows:

8 ‘‘(I) Whether the failure to allow the delay

9 would be likely to result in a miscarriage of justice.

10 ‘‘(II) Whether the case is so unusual or so com11 plex, due to the number of defendants, the nature of

12 the prosecution, or the existence of novel questions

13 of fact or law, that it is unreasonable to expect ade14 quate briefing within the time limitations established

15 by subparagraph (A).

16 ‘‘(III) Whether the failure to allow a delay in

17 a case, that, taken as a whole, is not so unusual or

18 so complex as described in subclause (II), but would

19 otherwise deny the applicant reasonable time to ob20 tain counsel, would unreasonably deny the applicant

21 or the government continuity of counsel, or would

22 deny counsel for the applicant or the government the

23 reasonable time necessary for effective preparation,

24 taking into account the exercise of due diligence.
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1 ‘‘(iii) No delay in disposition shall be permissible be2 cause of general congestion of the court’s calendar.

3 ‘‘(iv) The court shall transmit a copy of any order

4 issued under clause (i) to the Director of the Administra5 tive Office of the United States Courts for inclusion in

6 the report under paragraph (5).

7 ‘‘(2) The time limitations under paragraph (1) shall

8 apply to—

9 ‘‘(A) an initial application for a writ of habeas

10 corpus;

11 ‘‘(B) any second or successive application for a

12 writ of habeas corpus; and

13 ‘‘(C) any redetermination of an application for

14 a writ of habeas corpus following a remand by the

15 court of appeals or the Supreme Court for further

16 proceedings, in which case the limitation period shall

17 run from the date the remand is ordered.

18 ‘‘(3)(A) The time limitations under this section shall

19 not be construed to entitle an applicant to a stay of execu20 tion, to which the applicant would otherwise not be enti21 tled, for the purpose of litigating any application or ap22 peal.

23 ‘‘(B) No amendment to an application for a writ of

24 habeas corpus under this chapter shall be permitted after
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1 the filing of the answer to the application, except on the

2 grounds specified in section 2244(b).

3 ‘‘(4)(A) The failure of a court to meet or comply with

4 a time limitation under this section shall not be a ground

5 for granting relief from a judgment of conviction or sen6 tence.

7 ‘‘(B) The State may enforce a time limitation under

8 this section by petitioning for a writ of mandamus to the

9 court of appeals. The court of appeals shall act on the

10 petition for a writ or mandamus not later than 30 days

11 after the filing of the petition.

12 ‘‘(5)(A) The Administrative Office of United States

13 Courts shall submit to Congress an annual report on the

14 compliance by the district courts with the time limitations

15 under this section.

16 ‘‘(B) The report described in subparagraph (A) shall

17 include copies of the orders submitted by the district

18 courts under paragraph (1)(B)(iv).

19 ‘‘(c)(1)(A) A court of appeals shall hear and render

20 a final determination of any appeal of an order granting

21 or denying, in whole or in part, an application brought

22 under this chapter in a capital case not later than 120

23 days after the date on which the reply brief is filed, or

24 if no reply brief is filed, not later than 120 days after

25 the date on which the answering brief is filed.
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1 ‘‘(B)(i) A court of appeals shall decide whether to

2 grant a petition for rehearing or other request for rehear3 ing en banc not later than 30 days after the date on which

4 the petition for rehearing is filed unless a responsive

5 pleading is required, in which case the court shall decide

6 whether to grant the petition not later than 30 days after

7 the date on which the responsive pleading is filed.

8 ‘‘(ii) If a petition for rehearing or rehearing en banc

9 is granted, the court of appeals shall hear and render a

10 final determination of the appeal not later than 120 days

11 after the date on which the order granting rehearing or

12 rehearing en banc is entered.

13 ‘‘(2) The time limitations under paragraph (1) shall

14 apply to—

15 ‘‘(A) an initial application for a writ of habeas

16 corpus;

17 ‘‘(B) any second or successive application for a

18 writ of habeas corpus; and

19 ‘‘(C) any redetermination of an application for

20 a writ of habeas corpus or related appeal following

21 a remand by the court of appeals en banc or the Su22 preme Court for further proceedings, in which case

23 the limitation period shall run from the date the re24 mand is ordered.
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1 ‘‘(3) The time limitations under this section shall not

2 be construed to entitle an applicant to a stay of execution,

3 to which the applicant would otherwise not be entitled, for

4 the purpose of litigating any application or appeal.

5 ‘‘(4)(A) The failure of a court to meet or comply with

6 a time limitation under this section shall not be a ground

7 for granting relief from a judgment of conviction or sen8 tence.

9 ‘‘(B) The State may enforce a time limitation under

10 this section by applying for a writ of mandamus to the

11 Supreme Court.

12 ‘‘(5) The Administrative Office of United States

13 Courts shall submit to Congress an annual report on the

14 compliance by the courts of appeals with the time limita15 tions under this section.’’.

16 (b) TECHNICAL AMENDMENT.—The part analysis for

17 part IV of title 28, United States Code, is amended by

18 adding after the item relating to chapter 153 the following

19 new item:

‘‘154. Special habeas corpus procedures in capital

cases ............................................................................ 2261.’’.

20 (c) EFFECTIVE DATE.—Chapter 154 of title 28,

21 United States Code (as added by subsection (a)) shall

22 apply to cases pending on or after the date of enactment

23 of this Act.
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1 SEC. 108. TECHNICAL AMENDMENT.

2 Section 408(q) of the Controlled Substances Act (21

3 U.S.C. 848(q)) is amended by amending paragraph (9)

4 to read as follows:

5 ‘‘(9) Upon a finding that investigative, expert, or

6 other services are reasonably necessary for the representa7 tion of the defendant, whether in connection with issues

8 relating to guilt or the sentence, the court may authorize

9 the defendant’s attorneys to obtain such services on behalf

10 of the defendant and, if so authorized, shall order the pay11 ment of fees and expenses therefor under paragraph (10).

12 No ex parte proceeding, communication, or request may

13 be considered pursuant to this section unless a proper

14 showing is made concerning the need for confidentiality.

15 Any such proceeding, communication, or request shall be

16 transcribed and made a part of the record available for

17 appellate review.’’.

18 SEC. 109. SEVERABILITY.

19 If any provision of this title, an amendment made

20 by this title, or the application of such provision or

21 amendment to any person or circumstance is held to be

22 unconstitutional, the remainder of this title, the amend23 ments made by this title, and the application of the provi24 sions of such to any person or circumstances shall not be

25 affected thereby.
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1 TITLE II—ABOLISHMENT OF

2 DEPARTMENT OF COMMERCE

3 SEC. 2001. SHORT TITLE.

4 This title may be cited as the ‘‘Department of Com5 merce Dismantling Act’’.

6 SEC. 2002. TABLE OF CONTENTS.

7 The table of contents for this title is as follows:

TITLE II—ABOLISHMENT OF DEPARTMENT OF COMMERCE

Sec. 2001. Short title.

Sec. 2002. Table of contents.

Subtitle A—Abolishment of Department of Commerce

Sec. 2101. Abolishment of Department of Commerce.

Sec. 2102. Resolution and termination of Department functions.

Sec. 2103. Responsibilities of the Director of the Office of Management and

Budget.

Sec. 2104. Personnel.

Sec. 2105. Plans and reports.

Sec. 2106. GAO audit and access to records.

Sec. 2107. Conforming amendments.

Sec. 2108. Privatization framework.

Sec. 2109. Priority placement programs for Federal employees affected by a reduction in force attributable to this title.

Sec. 2110. Funding reductions for transferred functions.

Sec. 2111. Definitions.

Subtitle B—Disposition of Various Programs, Functions, and Agencies of

Department of Commerce

Sec. 2201. Abolishment of Economic Development Administration and transfer

of functions.

Sec. 2202. Technology Administration.

Sec. 2203. Reorganization of the Bureau of the Census and the Bureau of Economic Analysis.

Sec. 2204. Terminated functions of NTIA.

Sec. 2205. National Oceanic and Atmospheric Administration.

Sec. 2206. National Scientific, Oceanic, and Atmospheric Administration.

Sec. 2207. Miscellaneous terminations; moratorium on program activities.

Sec. 2208. Effective date.

Subtitle C—Office of United States Trade Representative

CHAPTER 1—GENERAL PROVISIONS

Sec. 2301. Definitions.
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CHAPTER 2—OFFICE OF UNITED STATES TRADE REPRESENTATIVE

SUBCHAPTER A—ESTABLISHMENT

Sec. 2311. Establishment of the Office.

Sec. 2312. Functions of the USTR.

SUBCHAPTER B—OFFICERS

Sec. 2321. Deputy Administrator of the Office.

Sec. 2322. Deputy United States Trade Representatives.

Sec. 2323. Assistant administrators.

Sec. 2324. Director General for Export Promotion.

Sec. 2325. General Counsel.

Sec. 2326. Inspector General.

Sec. 2327. Chief Financial Officer.

SUBCHAPTER C—TRANSFERS TO THE OFFICE

Sec. 2331. Office of the United States Trade Representative.

Sec. 2332. Transfers from the Department of Commerce.

Sec. 2333. Trade and Development Agency.

Sec. 2334. Export-Import Bank.

Sec. 2335. Overseas Private Investment Corporation.

Sec. 2336. Consolidation of export promotion and financing activities.

Sec. 2337. Additional trade functions.

SUBCHAPTER D—ADMINISTRATIVE PROVISIONS

Sec. 2341. Personnel provisions.

Sec. 2342. Delegation and assignment.

Sec. 2343. Succession.

Sec. 2344. Reorganization.

Sec. 2345. Rules.

Sec. 2346. Funds transfer.

Sec. 2347. Contracts, grants, and cooperative agreements.

Sec. 2348. Use of facilities.

Sec. 2349. Gifts and bequests.

Sec. 2350. Working capital fund.

Sec. 2351. Service charges.

Sec. 2352. Seal of office.

SUBCHAPTER E—RELATED AGENCIES

Sec. 2361. Interagency Trade Organization.

Sec. 2362. National Security Council.

Sec. 2363. International Monetary Fund.

SUBCHAPTER F—CONFORMING AMENDMENTS

Sec. 2371. Amendments to general provisions.

Sec. 2372. Repeals.

Sec. 2373. Conforming amendments relating to Executive Schedule positions.

SUBCHAPTER G—MISCELLANEOUS

Sec. 2381. Effective date.

Sec. 2382. Interim appointments.

Sec. 2383. Funding reductions resulting from reorganization.
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Subtitle D—Patent and Trademark Office Corporation

Sec. 2401. Short title.

CHAPTER 1—PATENT AND TRADEMARK OFFICE

Sec. 2411. Establishment of Patent and Trademark Office as a Corporation.

Sec. 2412. Powers and duties.

Sec. 2413. Organization and management.

Sec. 2414. Management Advisory Board.

Sec. 2415. Independence from Department of Commerce.

Sec. 2416. Trademark Trial and Appeal Board.

Sec. 2417. Board of Patent Appeals and Interferences.

Sec. 2418. Suits by and against the Corporation.

Sec. 2419. Annual report of Commissioner.

Sec. 2420. Suspension or exclusion from practice.

Sec. 2421. Funding.

Sec. 2422. Audits.

Sec. 2423. Transfers.

CHAPTER 2—EFFECTIVE DATE; TECHNICAL AMENDMENTS

Sec. 2431. Effective date.

Sec. 2432. Technical and conforming amendments.

Subtitle E—Miscellaneous Provisions

Sec. 2501. References.

Sec. 2502. Exercise of authorities.

Sec. 2503. Savings provisions.

Sec. 2504. Transfer of assets.

Sec. 2505. Delegation and assignment.

Sec. 2506. Authority of Director of the Office of Management and Budget with

respect to functions transferred.

Sec. 2507. Certain vesting of functions considered transfers.

Sec. 2508. Availability of existing funds.

Sec. 2509. Definitions.

Subtitle F—Citizens Commission on 21st Century Government

Sec. 2601. Short title and purpose.

Sec. 2602. Citizens Commission on 21st Century Government.

Sec. 2603. Department and agency cooperation.

Sec. 2604. Hearings.

Sec. 2605. Commission procedures.

Sec. 2606. Framework for the Federal Government in the 21st century.

Sec. 2607. Proposal for reorganizing the executive branch.

Sec. 2608. Procedures for making recommendations.

Sec. 2609. Congressional consideration of reform proposals.

Sec. 2610. Distribution of assets.

Sec. 2611. Agency defined.
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1 Subtitle A—Abolishment of

2 Department of Commerce

3 SEC. 2101. ABOLISHMENT OF DEPARTMENT OF COMMERCE.

4 (a) ABOLISHMENT OF DEPARTMENT.—The Depart5 ment of Commerce is abolished effective on the abolish6 ment date specified in subsection (c).

7 (b) TRANSFER OF DEPARTMENT FUNCTIONS TO

8 OMB.—Except as otherwise provided in this title, all func9 tions that immediately before the abolishment date speci10 fied in subsection (c) are authorized to be performed by

11 the Secretary of Commerce, any other officer or employee

12 of the Department acting in that capacity, or any agency

13 or office of the Department, are transferred to the Direc14 tor of the Office of Management and Budget effective on

15 that abolishment date.

16 (c) ABOLISHMENT DATE.—The abolishment date re17 ferred to in subsections (a) and (b) is the earlier of—

18 (1) the last day of the 6-month period begin19 ning on the date of the enactment of this Act; or

20 (2) September 30, 1996.

21 SEC. 2102. RESOLUTION AND TERMINATION OF DEPART22 MENT FUNCTIONS.

23 (a) RESOLUTION OF FUNCTIONS.—During the period

24 beginning on the date of enactment of this Act and ending
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1 on the functions termination date specified in subsection

2 (c)—

3 (1) the disposition and resolution of functions

4 of the Department of Commerce shall be completed

5 in accordance with this title; and

6 (2) the Director shall resolve all functions that

7 are transferred to the Director under section

8 2101(b) and are not otherwise continued under this

9 title.

10 (b) TERMINATION OF FUNCTIONS.—All functions

11 that are transferred to the Director under section 2101(b)

12 that are not otherwise continued by this title shall termi13 nate on the functions termination date specified in sub14 section (c).

15 (c) FUNCTIONS TERMINATION DATE.—The functions

16 termination date referred to in subsections (a) and (b) is

17 the last day of the 3-year period beginning on the date

18 of the enactment of this Act.

19 SEC. 2103. RESPONSIBILITIES OF THE DIRECTOR OF THE

20 OFFICE OF MANAGEMENT AND BUDGET.

21 (a) IN GENERAL.—The Director of the Office of

22 Management and Budget shall be responsible for the im23 plementation of this subtitle, including—
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1 (1) the administration and wind-up, during the

2 wind-up period, of all functions transferred to the

3 Director under section 2101(b);

4 (2) the administration and wind-up, during the

5 wind-up period, of any outstanding obligations of the

6 Federal Government under any programs terminated

7 by this title; and

8 (3) taking such other actions as may be nec9 essary to wind-up any outstanding affairs of the De10 partment of Commerce before the end of the wind11 up period.

12 (b) DELEGATION OF FUNCTIONS.—The Director may

13 delegate to any officer of the Office of Management and

14 Budget or to any other Federal department or agency

15 head the performance of the Director’s functions under

16 this subtitle, except the Director’s planning and reporting

17 responsibilities under section 2105, to the extent that the

18 Director determines that such delegation would further

19 the purposes of this subtitle.

20 (c) TRANSFER OF ASSETS AND PERSONNEL.—In

21 connection with any delegation of functions under sub22 section (b), the Director may transfer within the Office

23 or to the department or agency concerned such assets,

24 funds, personnel, records, and other property relating to
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1 the delegated function as the Director determines to be

2 appropriate.

3 (d) AUTHORITIES OF THE DIRECTOR.—For purposes

4 of performing the functions of the Director under this sub5 title and subject to the availability of appropriations, the

6 Director may—

7 (1) enter into contracts;

8 (2) employ experts and consultants in accord9 ance with section 3109 of title 5, United States

10 Code, at rates for individuals not to exceed the per

11 diem rate equivalent to the rate for level IV of the

12 Executive Schedule; and

13 (3) utilize, on a reimbursable basis, the services,

14 facilities, and personnel of other Federal agencies.

15 SEC. 2104. PERSONNEL.

16 Effective on the abolishment date specified in section

17 2101(c), there are transferred to the Office all individuals

18 who—

19 (1) immediately before the abolishment date,

20 were officers or employees of the Department of

21 Commerce; and

22 (2) in their capacity as such an officer or em23 ployee, performed functions that are transferred to

24 the Director under section 2101(b).
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1 SEC. 2105. PLANS AND REPORTS.

2 (a) INITIAL IMPLEMENTATION PLAN.—

3 (1) IN GENERAL.—Not later than 90 days after

4 the date of enactment of this Act, the Director shall

5 submit a report, through the President, to the Con6 gress specifying those actions taken and necessary to

7 be taken—

8 (A) to resolve those programs and func9 tions terminated on the date of enactment of

10 this Act; and

11 (B) to implement the additional transfers

12 and other program dispositions provided for in

13 this title.

14 (2) CONTENTS.—The report shall include—

15 (A) recommendations for additional legisla16 tion, if any, needed to reflect or otherwise to

17 implement the abolishments, transfers, termi18 nations, and other dispositions of programs and

19 functions under this title; and

20 (B) a description of actions planned and

21 taken to comply with limitations imposed by

22 this Act on future spending for continued func23 tions.

24 (b) ANNUAL STATUS REPORTS.—At the end of each

25 of the first, second, and third years following the date of
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1 enactment of this Act, the Director shall submit a report,

2 through the President, to the Congress which—

3 (1) specifies the status and progress of actions

4 taken to implement this title and to wind-up the af5 fairs of the Department of Commerce by the func6 tions termination date specified in section 2102(c);

7 (2) includes any recommendations the Director

8 may have for additional legislation; and

9 (3) describes actions taken to comply with limi10 tations imposed by this Act on future spending for

11 continued functions.

12 (c) GAO REPORTS.—Not later than 60 days after is13 suance of each report under subsections (a) and (b), the

14 Comptroller General of the United States shall submit to

15 the Congress a report which—

16 (1) evaluates the report under that subsection;

17 and

18 (2) includes any recommendations the Comp19 troller General considers appropriate.

20 SEC. 2106. GAO AUDIT AND ACCESS TO RECORDS.

21 (a) AUDIT OF PERSONS PERFORMING FUNCTIONS

22 PURSUANT TO THIS ACT.—All agencies, corporations, or23 ganizations, and other persons of any description which

24 under the authority of the United States perform any

25 function or activity pursuant to this title shall be subject
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1 to audit by the Comptroller General of the United States

2 with respect to such function or activity.

3 (b) AUDIT OF PERSONS PROVIDING CERTAIN GOODS

4 OR SERVICES.—All persons and organizations which, by

5 contract, grant, or otherwise, provide goods or services to,

6 or receive financial assistance from, any agency or other

7 person performing functions or activities under or referred

8 to by this title shall be subject to audit by the Comptroller

9 General of the United States with respect to such provi10 sion of goods or services or receipt of financial assistance.

11 (c) PROVISIONS APPLICABLE TO AUDITS UNDER

12 THIS SECTION.—

13 (1) NATURE AND SCOPE OF AUDIT.—The

14 Comptroller General of the United States shall de15 termine the nature, scope, terms, and conditions of

16 audits conducted under this section.

17 (2) COORDINATION WITH OTHER PROVISIONS

18 OF LAW.—The authority of the Comptroller General

19 of the United States under this section shall be in

20 addition to any audit authority available to the

21 Comptroller General under other provisions of this

22 title or any other law.

23 (3) RIGHTS OF ACCESS, EXAMINATION, AND

24 COPYING.—The Comptroller General of the United

25 States, and any duly authorized representative of the
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1 Comptroller General, shall have access to, and the

2 right to examine and copy, all records and other re3 corded information in any form, and to examine any

4 property within the possession or control of any

5 agency or person which is subject to audit under this

6 section, which the Comptroller General considers rel7 evant to an audit conducted under this section.

8 (4) ENFORCEMENT OF RIGHT OF ACCESS.—The

9 right of access of the Comptroller General of the

10 United States to information under this section shall

11 be enforceable under section 716 of title 31, United

12 States Code.

13 (5) MAINTENANCE OF CONFIDENTIAL

14 RECORDS.—Section 716(e) of title 31, United States

15 Code, shall apply to information obtained by the

16 Comptroller General under this section.

17 SEC. 2107. CONFORMING AMENDMENTS.

18 (a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)

19 of title 3, United States Code, is amended by striking

20 ‘‘Secretary of Commerce,’’.

21 (b) EXECUTIVE DEPARTMENTS.—Section 101 of title

22 5, United States Code, is amended by striking the follow23 ing item: ‘‘The Department of Commerce.’’.
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1 (c) SECRETARY’S COMPENSATION.—Section 5312 of

2 title 5, United States Code, is amended by striking the

3 following item: ‘‘Secretary of Commerce.’’.

4 (d) COMPENSATION FOR POSITIONS AT LEVEL III.—

5 Section 5314 of title 5, United States Code, is amended—

6 (1) by striking the following item:

7 ‘‘Under Secretary of Commerce, Under Secretary of

8 Commerce for Economic Affairs, Under Secretary of Com9 merce for Export Administration and Under Secretary of

10 Commerce for Travel and Tourism.’’;

11 (2) by striking the following item:

12 ‘‘Under Secretary of Commerce for Oceans and At13 mosphere, the incumbent of which also serves as Adminis14 trator of the National Oceanic and Atmospheric Adminis15 tration.’’; and

16 (3) by striking the following item:

17 ‘‘Under Secretary of Commerce for Technology.’’.

18 (e) COMPENSATION FOR POSITIONS AT LEVEL IV.—

19 Section 5315 of title 5, United States Code, is amended—

20 (1) by striking the following item:

21 ‘‘Assistant Secretaries of Commerce (11).’’;

22 (2) by striking the following item:

23 ‘‘General Counsel of the Department of Commerce.’’;

24 (3) by striking the following item:
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1 ‘‘Assistant Secretary of Commerce for Oceans and

2 Atmosphere, the incumbent of which also serves as Deputy

3 Administrator of the National Oceanic and Atmospheric

4 Administration.’’;

5 (4) by striking the following item:

6 ‘‘Director, National Institute of Standards and Tech7 nology, Department of Commerce.’’;

8 (5) by striking the following item:

9 ‘‘Inspector General, Department of Commerce.’’;

10 (6) by striking the following item:

11 ‘‘Chief Financial Officer, Department of Com12 merce.’’; and

13 (7) in the item relating to the Bureau of the

14 Census, by striking ‘‘, Department of Commerce’’.

15 (f) COMPENSATION FOR POSITIONS AT LEVEL V.—

16 Section 5316 of title 5, United States Code, is amended—

17 (1) by striking the following item:

18 ‘‘Director, United States Travel Service, Department

19 of Commerce.’’; and

20 (2) by striking the following item:

21 ‘‘National Export Expansion Coordinator, Depart22 ment of Commerce.’’.

23 (g) INSPECTOR GENERAL ACT OF 1978.—The In24 spector General Act of 1978 (5 U.S.C. App.) is amend25 ed—
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1 (1) in section 9(a)(1), by striking subparagraph

2 (B);

3 (2) in section 11(1), by striking ‘‘Commerce,’’;

4 and

5 (3) in section 11(2), by striking ‘‘Commerce,’’.

6 (h) EFFECTIVE DATE.—The amendments made by

7 this section shall be effective on the abolishment date spec8 ified in section 2101(c).

9 SEC. 2108. PRIVATIZATION FRAMEWORK.

10 (a) IN GENERAL.—The Office of Management and

11 Budget shall privatize each function designated for privat12 ization under subtitle B within 18 months of the date of

13 the transfer of such function to the Office. The Office

14 shall pursue such forms of privatization arrangements as

15 the Office considers appropriate to best serve the interests

16 of the United States. If the Office is unable to privatize

17 a function within 18 months, the Office shall report its

18 inability to the Congress with its recommendations as to

19 the appropriate disposition of the function and its assets.

20 (b) ROLE OF THE FEDERAL GOVERNMENT.—No pri21 vatization arrangement made under subsection (a) shall

22 include any future role for, or accountability to, the Fed23 eral Government unless it is necessary to assure the con24 tinued accomplishment of a specific Federal objective. The
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1 Federal role should be the minimum necessary to accom2 plish Federal objectives.

3 (c) ASSETS.—In privatizing a function, the Office of

4 Management and Budget shall take any action necessary

5 to preserve the value of the assets of a function during

6 the period the Office holds such assets and to continue

7 the performance of the function to the extent necessary

8 to preserve the value of the assets or to accomplish core

9 Federal objectives.

10 SEC. 2109. PRIORITY PLACEMENT PROGRAMS FOR FED11 ERAL EMPLOYEES AFFECTED BY A REDUC12 TION IN FORCE ATTRIBUTABLE TO THIS

13 TITLE.

14 (a) IN GENERAL.—Subchapter I of chapter 33 of title

15 5, United States Code, is amended by adding at the end

16 the following:

17 ‘‘§ 3329b. Priority placement programs for employees

18 affected by a reduction in force attrib19 utable to the Department of Commerce

20 Dismantling Act

21 ‘‘(a)(1) For the purpose of this section, the term ‘af22 fected agency’—

23 ‘‘(A) except as provided in subparagraph (B),

24 means an Executive agency to which personnel are

25 transferred in connection with a transfer of function
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1 under the Department of Commerce Dismantling

2 Act, and

3 ‘‘(B) with respect to employees of the Depart4 ment of Commerce in general administration, the In5 spector General’s office, or the General Counsel’s of6 fice, or who provided overhead support to other com7 ponents of the Department on a reimbursable basis,

8 means all agencies to which functions of those em9 ployees are transferred under the Department of

10 Commerce Dismantling Act.

11 ‘‘(2) This section applies with respect to any reduc12 tion in force that—

13 ‘‘(A) occurs within 12 months after the date of

14 the enactment of this section; and

15 ‘‘(B) is due to—

16 ‘‘(i) the termination of any function of the

17 Department of Commerce; or

18 ‘‘(ii) the agency’s having excess personnel

19 as a result of a transfer of function described

20 in paragraph (1), as determined by—

21 ‘‘(I) the Director of the Office of

22 Management and Budget, in the case of a

23 function transferred to the Office of Man24 agement and Budget; or
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1 ‘‘(II) the head of the agency, in the

2 case of any other function.

3 ‘‘(b) As soon as practicable after the date of the en4 actment of this section, each affected agency shall estab5 lish an agencywide priority placement program to facili6 tate employment placement for employees who—

7 ‘‘(1) are scheduled to be separated from service

8 due to a reduction in force described in subsection

9 (a)(2); or

10 ‘‘(2) are separated from service due to such a

11 reduction in force.

12 ‘‘(c)(1) Each agencywide priority placement program

13 shall include provisions under which a vacant position

14 shall not be filled by the appointment or transfer of any

15 individual from outside of that agency if—

16 ‘‘(A) there is then available any individual de17 scribed in paragraph (2) who is qualified for the po18 sition; and

19 ‘‘(B) the position—

20 ‘‘(i) is at the same grade (or pay level) or

21 not more than 1 grade (or pay level) below that

22 of the position last held by such individual be23 fore placement in the new position; and
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1 ‘‘(ii) is within the same commuting area as

2 the individual’s last-held position (as referred to

3 in clause (i)) or residence.

4 ‘‘(2) For purposes of an agencywide priority place5 ment program, an individual shall be considered to be de6 scribed in this paragraph if such individual’s most recent

7 performance evaluation was at least fully successful (or

8 the equivalent), and such individual is either—

9 ‘‘(A) an employee of such agency who is sched10 uled to be separated, as described in subsection

11 (b)(1); or

12 ‘‘(B) an individual who became a former em13 ployee of such agency as a result of a separation, as

14 described in subsection (b)(2).

15 ‘‘(d)(1) Nothing in this section shall affect any prior16 ity placement program of the Department of Defense

17 which is in operation as of the date of the enactment of

18 this section.

19 ‘‘(2) Nothing in this section shall impair placement

20 programs within agencies subject to reductions in force re21 sulting from causes other than the Department of Com22 merce Dismantling Act.

23 ‘‘(e) An individual shall cease to be eligible to partici24 pate in a program under this section on the earlier of—
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1 ‘‘(1) the conclusion of the 12-month period be2 ginning on the date on which that individual first

3 became eligible to participate under subsection

4 (c)(2); or

5 ‘‘(2) the date on which the individual declines

6 a bona fide offer (or if the individual does not act

7 on the offer, the last day for accepting such offer)

8 from the affected agency of a position described in

9 subsection (c)(1)(B).’’.

10 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

11 (1) Title 5, United States Code, is amended by redesignat12 ing the second section which is designated as section 3329

13 as section 3329a.

14 (2) The table of sections for chapter 33 of title 5,

15 United States Code, is amended by striking the item relat16 ing to the second section which is designated as section

17 3329 and inserting the following:

‘‘3329a. Government-wide list of vacant positions.

‘‘3329b. Priority placement programs for employees affected by a reduction

in force attributable to the Department of Commerce Dismantling Act.’’.

18 SEC. 2110. FUNDING REDUCTIONS FOR TRANSFERRED

19 FUNCTIONS.

20 (a) FUNDING REDUCTIONS.—Except as provided in

21 subsection (b), the total amount obligated or expended by

22 the United States in performing functions transferred

23 under this title to the Director or to the Office from the
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1 Department of Commerce, or any of its officers or compo2 nents, shall not exceed—

3 (1) for the first fiscal year that begins after the

4 abolishment date specified in section 2101(c), 75

5 percent of the total amount appropriated to the De6 partment of Commerce for the performance of such

7 functions in fiscal year 1995; and

8 (2) for the second fiscal year that begins after

9 the abolishment date specified in section 2101(c)

10 and for each fiscal year thereafter, 65 percent of the

11 total amount appropriated to the Department of

12 Commerce for the performance of such functions in

13 fiscal year 1995.

14 (b) EXCEPTION.—Subsection (a) shall not apply to

15 obligations or expenditures incurred as a direct con16 sequence of the termination, transfer, or other disposition

17 of functions described in subsection (a) pursuant to this

18 title.

19 (c) RULE OF CONSTRUCTION.—This section shall

20 take precedence over any other provision of law unless

21 such provision explicitly refers to this section and makes

22 an exception to it.

23 (d) RESPONSIBILITIES OF THE DIRECTOR.—The Di24 rector shall—
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1 (1) ensure compliance with the requirements of

2 this section; and

3 (2) include in each report under sections

4 2105(a) and (b) a description of actions taken to

5 comply with such requirements.

6 SEC. 2111. DEFINITIONS.

7 For purposes of this subtitle, the following definitions

8 apply:

9 (1) DIRECTOR.—The term ‘‘Director’’ means

10 the Director of the Office of Management and Budg11 et.

12 (2) OFFICE.—The term ‘‘Office’’ means the Of13 fice of Management and Budget.

14 (3) WIND-UP PERIOD.—The term ‘‘wind-up pe15 riod’’ means the period beginning on the date of the

16 enactment of this Act and ending on the functions

17 termination date specified in section 2102(c).
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1 Subtitle B—Disposition of Various

2 Programs, Functions, and Agen3 cies of Department of Com4 merce

5 SEC. 2201. ABOLISHMENT OF ECONOMIC DEVELOPMENT

6 ADMINISTRATION AND TRANSFER OF FUNC7 TIONS.

8 (a) IN GENERAL.—The Public Works and Economic

9 Development Act of 1965 (40 U.S.C. 3131 et seq.) is

10 amended by striking all after the first section and insert11 ing the following:

12 ‘‘SEC. 2. ADMINISTRATOR DEFINED.

13 ‘‘In this Act, the term ‘Administrator’ means the Ad14 ministrator of the Small Business Administration.

15 ‘‘TITLE I—STATEMENT OF

16 PURPOSE

17 ‘‘SEC. 101. FINDINGS AND DECLARATION.

18 ‘‘(a) FINDINGS.—Congress finds that—

19 ‘‘(1) the maintenance of the national economy

20 at a high level is vital to the best interests of the

21 United States, but that some of our regions, coun22 ties, and communities are suffering substantial and

23 persistent unemployment and underemployment that

24 cause hardship to many individuals and their fami25 lies, and waste invaluable human resources;
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1 ‘‘(2) to overcome this problem the Federal Gov2 ernment, in cooperation with the States, should help

3 areas and regions of substantial and persistent un4 employment and underemployment to take effective

5 steps in planning and financing their public works

6 and economic development;

7 ‘‘(3) Federal financial assistance, including

8 grants for public works and development facilities to

9 communities, industries, enterprises, and individuals

10 in areas needing development should enable such

11 areas to help themselves achieve lasting improve12 ment and enhance the domestic prosperity by the es13 tablishment of stable and diversified local economies

14 and improved local conditions, if such assistance is

15 preceded by and consistent with sound, long-range

16 economic planning; and

17 ‘‘(4) under the provisions of this Act, new em18 ployment opportunities should be created by develop19 ing and expanding new and existing public works

20 and other facilities and resources rather than by

21 merely transferring jobs from one area of the United

22 States to another.

23 ‘‘(b) DECLARATION.—Congress declares that, in fur24 therance of maintaining the national economy at a high

25 level—
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1 ‘‘(1) the assistance authorized by this Act

2 should be made available to both rural and urban

3 areas;

4 ‘‘(2) such assistance should be made available

5 for planning for economic development prior to the

6 actual occurrences of economic distress in order to

7 avoid such condition; and

8 ‘‘(3) such assistance should be used for long9 term economic rehabilitation in areas where long10 term economic deterioration has occurred or is tak11 ing place.

12 ‘‘TITLE II—GRANTS FOR PUBLIC

13 WORKS AND DEVELOPMENT

14 FACILITIES

15 ‘‘SEC. 201. DIRECT AND SUPPLEMENTARY GRANTS.

16 ‘‘(a) IN GENERAL.—Upon the application of any eli17 gible recipient, the Administrator may—

18 ‘‘(1) make direct grants for the acquisition or

19 development of land and improvements for public

20 works, public service, or development facility usage,

21 and the acquisition, design and engineering, con22 struction, rehabilitation, alteration, expansion, or im23 provement of such facilities, including related ma24 chinery and equipment, within an area described in

25 section 502(a), if the Administrator finds that—
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1 ‘‘(A) the project for which financial assist2 ance is sought will directly or indirectly—

3 ‘‘(i) tend to improve the opportunities,

4 in the area where such project is or will be

5 located, for the successful establishment or

6 expansion of industrial or commercial

7 plants or facilities;

8 ‘‘(ii) otherwise assist in the creation

9 of additional long-term employment oppor10 tunities for such area; or

11 ‘‘(iii) primarily benefit the long-term

12 unemployed and members of low-income

13 families;

14 ‘‘(B) the project for which a grant is re15 quested will fulfill a pressing need of the area,

16 or part thereof, in which it is, or will be, lo17 cated; and

18 ‘‘(C) the area for which a project is to be

19 undertaken has an approved investment strat20 egy as provided by section 503 and such project

21 is consistent with such strategy;

22 ‘‘(2) make supplementary grants in order to en23 able the States and other entities within areas de24 scribed in section 502(a) to take maximum advan25 tage of designated Federal grant-in-aid programs (as
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1 defined in subsection (c)(4)), direct grants-in-aid au2 thorized under this section, and Federal grant-in-aid

3 programs authorized by the Watershed Protection

4 and Flood Prevention Act (68 Stat. 666), and the

5 11 watersheds authorized by the Flood Control Act

6 of December 22, 1944 (58 Stat. 887), for which

7 they are eligible but for which, because of their eco8 nomic situation, they cannot supply the required

9 matching share.

10 ‘‘(b) COST SHARING.—Subject to subsection (c), the

11 amount of any direct grant under this subsection for any

12 project shall not exceed 50 percent of the cost of such

13 project.

14 ‘‘(c) REQUIREMENTS APPLICABLE TO SUPPLE15 MENTARY GRANTS.—

16 ‘‘(1) AMOUNT OF SUPPLEMENTARY GRANTS.—

17 ‘‘(A) IN GENERAL.—Except as provided by

18 subparagraph (B), the amount of any supple19 mentary grant under this section for any

20 project shall not exceed the applicable percent21 age established by regulations promulgated by

22 the Administrator, but in no event shall the

23 non-Federal share of the aggregate cost of any

24 such project (including assumptions of debt) be

25 less than 20 percent of such cost.
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1 ‘‘(B) EXCEPTION.—Notwithstanding sub2 paragraph (A), in the case of an Indian tribe,

3 a State (or a political subdivision of the State),

4 or a community development corporation which

5 the Administrator determines has exhausted its

6 effective taxing and borrowing capacity, the Ad7 ministrator shall reduce the non-Federal share

8 below the percentage specified in subparagraph

9 (A) or shall waive the non-Federal share in the

10 case of such a grant for a project in an area

11 described in section 502(a)(4).

12 ‘‘(2) FORM OF SUPPLEMENTARY GRANTS.—

13 Supplementary grants shall be made by the Admin14 istrator, in accordance with such regulations as the

15 Administrator may prescribe, by increasing the

16 amounts of direct grants authorized under this sec17 tion or by the payment of funds appropriated under

18 this Act to the heads of the departments, agencies,

19 and instrumentalities of the Federal Government re20 sponsible for the administration of the applicable

21 Federal programs.

22 ‘‘(3) FEDERAL SHARE LIMITATIONS SPECIFIED

23 IN OTHER LAWS.—Notwithstanding any requirement

24 as to the amount or sources of non-Federal funds

25 that may otherwise be applicable to the Federal pro-
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1 gram involved, funds provided under this subsection

2 shall be used for the sole purpose of increasing the

3 Federal contribution to specific projects in areas de4 scribed in section 502(a) under such programs above

5 the fixed maximum portion of the cost of such

6 project otherwise authorized by the applicable law.

7 ‘‘(4) DESIGNATED FEDERAL GRANT-IN-AID

8 PROGRAMS DEFINED.—In this subsection, the term

9 ‘designated Federal grant-in-aid programs’ means

10 such existing or future Federal grant-in-aid pro11 grams assisting in the construction or equipping of

12 facilities as the Administrator may, in furtherance of

13 the purposes of this Act, designate as eligible for al14 location of funds under this section.

15 ‘‘(5) CONSIDERATION OF RELATIVE NEED IN

16 DETERMINING AMOUNT.—In determining the

17 amount of any supplementary grant available to any

18 project under this section, the Administrator shall

19 take into consideration the relative needs of the area

20 and the nature of the projects to be assisted.

21 ‘‘(d) REGULATIONS.—The Administrator shall pre22 scribe rules, regulations, and procedures to carry out this

23 section which will assure that adequate consideration is

24 given to the relative needs of eligible areas. In prescribing
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1 such rules, regulations, and procedures the Administrator

2 shall consider among other relevant factors—

3 ‘‘(1) the severity of the rates of unemployment

4 in the eligible areas and the duration of such unem5 ployment; and

6 ‘‘(2) the income levels of families and the extent

7 of underemployment in eligible areas.

8 ‘‘(e) REVIEW AND COMMENT UPON PROJECTS BY

9 LOCAL GOVERNMENTAL AUTHORITIES.—The Adminis10 trator shall prescribe regulations which will assure that

11 appropriate local governmental authorities have been given

12 a reasonable opportunity to review and comment upon

13 proposed projects under this section.

14 ‘‘SEC. 202. CONSTRUCTION COST INCREASES.

15 ‘‘In any case where a grant (including a supplemental

16 grant) has been made by the Administrator under this

17 title for a project and after such grant has been made

18 but before completion of the project, the cost of such

19 project based upon the designs and specifications which

20 were the basis of the grant has been increased because

21 of increases in costs, the amount of such grant may be

22 increased by an amount equal to the percentage increase,

23 as determined by the Administrator, in such costs, but in

24 no event shall the percentage of the Federal share of such

25 project exceed that originally provided for in such grant.
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1 ‘‘SEC. 203. USE OF FUNDS IN PROJECTS CONSTRUCTED

2 UNDER PROJECTED COST.

3 ‘‘In any case where a grant (including a supplemental

4 grant) has been made by the Administrator under this

5 title for a project, and after such grant has been made

6 but before completion of the project, the cost of such

7 project based upon the designs and specifications which

8 were the basis of the grant has decreased because of de9 creases in costs, such underrun funds may be used to im10 prove the project either directly or indirectly as deter11 mined by the Administrator.

12 ‘‘SEC. 204. CHANGED PROJECT CIRCUMSTANCES.

13 ‘‘In any case where a grant (including a supplemental

14 grant) has been made by the Administrator under this

15 title for a project, and after such grant has been made

16 but before completion of the project, the purpose or scope

17 of such project based upon the designs and specifications

18 which were the basis of the grant has changed, the Admin19 istrator may approve the use of grant funds on such

20 changed project if the Administrator determines that such

21 changed project meets the requirements of this title and

22 that such changes are necessary to enhance economic de23 velopment in the area.
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1 ‘‘TITLE III—SPECIAL ECONOMIC

2 DEVELOPMENT AND ADJUST3 MENT ASSISTANCE

4 ‘‘SEC. 301. STATEMENT OF PURPOSE.

5 ‘‘The purpose of this title to provide special economic

6 development and adjustment assistance programs to help

7 State and local areas meet special needs arising from ac8 tual or threatened severe unemployment arising from eco9 nomic dislocation (including unemployment arising from

10 actions of the Federal Government, from defense base clo11 sures and realignments, and from compliance with envi12 ronmental requirements which remove economic activities

13 from a locality) and economic adjustment problems result14 ing from severe changes in economic conditions (including

15 long-term economic deterioration), and to encourage coop16 erative intergovernmental action to prevent or solve eco17 nomic adjustment problems. Nothing in this title is in18 tended to replace the efforts of the economic adjustment

19 program of the Department of Defense.

20 ‘‘SEC. 302. SPECIAL ECONOMIC DEVELOPMENT AND AD21 JUSTMENT ASSISTANCE.

22 ‘‘(a) IN GENERAL.—The Administrator is authorized

23 to make grants directly to any eligible recipient in an area

24 which the Administrator determines, in accordance with
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1 criteria to be established by the Administrator by regula2 tion—

3 ‘‘(1) has experienced, or may reasonably be

4 foreseen to be about to experience, a special need to

5 meet an expected rise in unemployment, or other

6 economic adjustment problems (including those

7 caused by any action or decision of the Federal Gov8 ernment); or

9 ‘‘(2) has demonstrated long-term economic de10 terioration.

11 ‘‘(b) PURPOSES.—Amounts from grants under sub12 section (a) shall be used by an eligible recipient to carry

13 out or develop an investment strategy which—

14 ‘‘(1) meets the requirements of section 503; and

15 ‘‘(2) is approved by the Administrator.

16 ‘‘(c) TYPES OF ASSISTANCE.—In carrying out an in17 vestment strategy using amounts from grants under sub18 section (a), an eligible recipient may provide assistance for

19 any of the following:

20 ‘‘(1) Public facilities.

21 ‘‘(2) Public services.

22 ‘‘(3) Business development.

23 ‘‘(4) Planning.

24 ‘‘(5) Research and technical assistance.

25 ‘‘(6) Administrative expenses.
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1 ‘‘(7) Training.

2 ‘‘(8) Relocation of individuals and businesses.

3 ‘‘(9) Other assistance which demonstrably fur4 thers the economic adjustment objectives of this

5 title.

6 ‘‘(d) DIRECT EXPENDITURE OR REDISTRIBUTION BY

7 RECIPIENT.—Amounts from grants under subsection (a)

8 may be used in direct expenditures by the eligible recipient

9 or through redistribution by the eligible recipient to public

10 and private entities in grants, loans, loan guarantees, pay11 ments to reduce interest on loan guarantees, or other ap12 propriate assistance, but no grant shall be made by an

13 eligible recipient to a private profit-making entity.

14 ‘‘(e) COORDINATION.—The Administrator to the ex15 tent practicable shall coordinate the activities relating to

16 the requirements for investment strategies and making

17 grants and loans under this title with other Federal pro18 grams, States, economic development districts, and other

19 appropriate planning and development organizations.

20 ‘‘(f) BASE CLOSINGS AND REALIGNMENTS.—

21 ‘‘(1) LOCATION OF PROJECTS.—In any case in

22 which the Administrator determines a need for as23 sistance under subsection (a) due to the closure or

24 realignment of a military installation, the Adminis25 trator may make such assistance available for
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1 projects to be carried out on the military installation

2 and for projects to be carried out in communities ad3 versely affected by the closure or realignment.

4 ‘‘(2) INTEREST IN PROPERTY.—Notwithstand5 ing any other provision of law, the Administrator

6 may provide to an eligible recipient any assistance

7 available under this Act for a project to be carried

8 out on a military installation that is closed or sched9 uled for closure or realignment without requiring

10 that the eligible recipient have title to the property

11 or a leasehold interest in the property for any speci12 fied term.

13 ‘‘SEC. 303. ANNUAL REPORTS BY RECIPIENT.

14 ‘‘Each eligible recipient which receives assistance

15 under this title from the Administrator shall annually dur16 ing the period such assistance continue to make a full and

17 complete report to the Administrator, in such manner as

18 the Administrator shall prescribe, and such report shall

19 contain an evaluation of the effectiveness of the economic

20 assistance provided under this title in meeting the need

21 it was designed to alleviate and the purposes of this title.

22 ‘‘SEC. 304. SALE OF FINANCIAL INSTRUMENTS IN REVOLV23 ING LOAN FUNDS.

24 ‘‘Any loan, loan guarantee, equity, or other financial

25 instrument in the portfolio of a revolving loan fund, in-
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1 cluding any financial instrument made available using

2 amounts from a grant made before the effective date speci3 fied in section 802, may be sold, encumbered, or pledged

4 at the discretion of the grantee of the Fund, to a third

5 party provided that the net proceeds of the transaction—

6 ‘‘(1) shall be deposited into the Fund and may

7 only be used for activities which are consistent with

8 the purposes of this title; and

9 ‘‘(2) shall be subject to the financial manage10 ment, accounting, reporting, and auditing standards

11 which were originally applicable to the grant.

12 ‘‘SEC. 305. TREATMENT OF REVOLVING LOAN FUNDS.

13 ‘‘(a) IN GENERAL.—Amounts from grants made

14 under this title which are used by an eligible recipient to

15 establish a revolving loan fund shall not be treated, except

16 as provided by subsection (b), as amounts derived from

17 Federal funds for the purposes of any Federal law after

18 such amounts are loaned from the fund to a borrower and

19 repaid to the fund.

20 ‘‘(b) EXCEPTIONS.—Amounts described in subsection

21 (a) which are loaned from a revolving loan fund to a bor22 rower and repaid to the fund—

23 ‘‘(1) may only be used for activities which are

24 consistent with the purposes of this title; and
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1 ‘‘(2) shall be subject to the financial manage2 ment, accounting, reporting, and auditing standards

3 which were originally applicable to the grant.

4 ‘‘(c) REGULATIONS.—Not later than 30 days after

5 the effective date specified in section 802, the Adminis6 trator shall issue regulations to carry out subsection (a).

7 ‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issu8 ing any final guidelines or administrative manuals govern9 ing the operation of revolving loan funds established using

10 amounts from grants under this title, the Administrator

11 shall provide reasonable opportunity for public review of

12 and comment on such guidelines and administrative

13 manuals.

14 ‘‘(e) APPLICABILITY TO PAST GRANTS.—The re15 quirements of this section applicable to amounts from

16 grants made under this title shall also apply to amounts

17 from grants made, before the effective date specified in

18 section 802, under title I of this Act, as in effect on the

19 day before such effective date.

20 ‘‘TITLE IV—TECHNICAL ASSIST21 ANCE, RESEARCH, AND IN22 FORMATION

23 ‘‘SEC. 401. TECHNICAL ASSISTANCE.

24 ‘‘(a) IN GENERAL.—In carrying out its duties under

25 this Act, the Administrator may provide technical assist-
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1 ance which would be useful in alleviating or preventing

2 conditions of excessive unemployment or

3 underemployment to areas which the Administrator finds

4 have substantial need for such assistance. Such assistance

5 shall include project planning and feasibility studies, man6 agement and operational assistance, establishment of busi7 ness outreach centers, and studies evaluating the needs

8 of, and development potentialities for, economic growth of

9 such areas.

10 ‘‘(b) PROCEDURES AND TERMS.—

11 ‘‘(1) MANNER OF PROVIDING ASSISTANCE.—As12 sistance may be provided by the Administrator

13 through—

14 ‘‘(A) members of the Administrator’s staff;

15 ‘‘(B) the payment of funds authorized for

16 this section to departments or agencies of the

17 Federal Government;

18 ‘‘(C) the employment of private individ19 uals, partnerships, firms, corporations, or suit20 able institutions under contracts entered into

21 for such purposes; or

22 ‘‘(D) grants-in-aid to appropriate public or

23 private nonprofit State, area, district, or local

24 organizations.
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1 ‘‘(2) REPAYMENT TERMS.—The Administrator,

2 in the Administrator’s discretion, may require the

3 repayment of assistance provided under this sub4 section and prescribe the terms and conditions of

5 such repayment.

6 ‘‘(c) GRANTS COVERING ADMINISTRATIVE EX7 PENSES.—

8 ‘‘(1) IN GENERAL.—The Administrator may

9 make grants to defray not to exceed 50 percent of

10 the administrative expenses of organizations which

11 the Administrator determines to be qualified to re12 ceive grants-in-aid under subsections (a) and (b); ex13 cept that in the case of a grant under this sub14 section to an Indian tribe, the Administrator is au15 thorized to defray up to 100 percent of such ex16 penses.

17 ‘‘(2) DETERMINATION OF NON-FEDERAL

18 SHARE.—In determining the amount of the non-Fed19 eral share of such costs or expenses, the Adminis20 trator shall give due consideration to all contribu21 tions both in cash and in kind, fairly evaluated, in22 cluding contributions of space, equipment, and serv23 ices.

24 ‘‘(3) USE OF GRANTS WITH PLANNING

25 GRANTS.—Where practicable, grants-in-aid author-
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1 ized under this subsection shall be used in conjunc2 tion with other available planning grants to assure

3 adequate and effective planning and economical use

4 of funds.

5 ‘‘(d) AVAILABILITY OF TECHNICAL INFORMATION;

6 FEDERAL PROCUREMENT.—The Administrator shall aid

7 areas described in section 502(a) and other areas by fur8 nishing to interested individuals, communities, industries,

9 and enterprises within such areas any assistance, technical

10 information, market research, or other forms of assist11 ance, information, or advice which would be useful in alle12 viating or preventing conditions of excessive unemploy13 ment or underemployment within such areas. The Admin14 istrator may furnish the procurement divisions of the var15 ious departments, agencies, and other instrumentalities of

16 the Federal Government with a list containing the names

17 and addresses of business firms which are located in areas

18 described in section 502(a) and which are desirous of ob19 taining Government contracts for the furnishing of sup20 plies or services, and designating the supplies and services

21 such firms are engaged in providing.

22 ‘‘SEC. 402. ECONOMIC DEVELOPMENT PLANNING.

23 ‘‘(a) DIRECT GRANTS.—

24 ‘‘(1) IN GENERAL.—The Administrator may

25 make, upon application of any State, or city, or
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1 other political subdivision of a State, or sub-State

2 planning and development organization (including an

3 area described in section 502(a) or an economic de4 velopment district), direct grants to such State, city,

5 or other political subdivision, or organization to pay

6 up to 50 percent of the cost for economic develop7 ment planning.

8 ‘‘(2) PLANNING PROJECTS SPECIFICALLY IN9 CLUDED.—The planning for cities, other political

10 subdivisions, and sub-State planning and develop11 ment organizations (including areas described in sec12 tion 502(a) and economic development districts) as13 sisted under this section shall include systematic ef14 forts to reduce unemployment and increase incomes.

15 ‘‘(3) PLANNING PROCESS.—The planning shall

16 be a continuous process involving public officials and

17 private citizens in analyzing local economies, defin18 ing development goals, determining project opportu19 nities, and formulating and implementing a develop20 ment program.

21 ‘‘(4) COORDINATION OF ASSISTANCE UNDER

22 SECTION 401(c).—The assistance available under

23 this section may be provided in addition to assist24 ance available under section 401(c) but shall not

25 supplant such assistance.
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1 ‘‘(b) COMPLIANCE WITH REVIEW PROCEDURE.—The

2 planning assistance authorized under this title shall be

3 used in conjunction with any other available Federal plan4 ning assistance to assure adequate and effective planning

5 and economical use of funds.

6 ‘‘TITLE V—ELIGIBILITY AND

7 INVESTMENT STRATEGIES

8 ‘‘PART A—ELIGIBILITY

9 ‘‘SEC. 501. ELIGIBLE RECIPIENT DEFINED.

10 ‘‘In this Act, the term ‘eligible recipient’ means an

11 area described in section 502(a), an economic development

12 district designated under section 510, an Indian tribe, a

13 State, a city or other political subdivision of a State, or

14 a consortium of such political subdivisions, or a public or

15 private nonprofit organization or association acting in co16 operation with officials of such political subdivisions.

17 ‘‘SEC. 502. AREA ELIGIBILITY.

18 ‘‘(a) CERTIFICATION.—In order to be eligible for as19 sistance under title II, an applicant seeking assistance to

20 undertake a project in an area shall certify, as part of

21 an application for such assistance, that the area on the

22 date of submission of such application meets 1 or more

23 of the following criteria:

24 ‘‘(1) The area has a per capita income of 80

25 percent or less of the national average.
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1 ‘‘(2) The area has an unemployment rate 1 per2 cent above the national average percentage for the

3 most recent 24-month period for which statistics are

4 available.

5 ‘‘(3) The area has experienced or is about to

6 experience a sudden economic dislocation resulting

7 in job loss that is significant both in terms of the

8 number of jobs eliminated and the effect upon the

9 employment rate of the area.

10 ‘‘(4) The area is a community or neighborhood

11 (defined without regard to political or other subdivi12 sions or boundaries) which the Administrator deter13 mines has one or more of the following conditions:

14 ‘‘(A) A large concentration of low-income

15 persons.

16 ‘‘(B) Rural areas having substantial out17 migration.

18 ‘‘(C) Substantial unemployment.

19 ‘‘(b) DOCUMENTATION.—A certification made under

20 subsection (a) shall be supported by Federal data, when

21 available, and in other cases by data available through the

22 State government. Such documentation shall be accepted

23 by the Administrator unless it is determined to be inac24 curate. The most recent statistics available shall be used.
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1 ‘‘(c) PRIOR DESIGNATIONS.—Any designation of a

2 redevelopment area made before the effective date speci3 fied in section 802 shall not be effective after such effec4 tive date.

5 ‘‘SEC. 503. INVESTMENT STRATEGY.

6 ‘‘The Administrator may provide assistance under ti7 tles II and III to an applicant for a project only if the

8 applicant submits to the Administrator, as part of an ap9 plication for such assistance, and the Administrator ap10 proves an investment strategy which—

11 ‘‘(1) identifies the economic development prob12 lems to be addressed using such assistance;

13 ‘‘(2) identifies past, present, and projected fu14 ture economic development investments in the area

15 receiving such assistance and public and private par16 ticipants and sources of funding for such invest17 ments;

18 ‘‘(3) sets forth a strategy for addressing the

19 economic problems identified pursuant to paragraph

20 (1) and describes how the strategy will solve such

21 problems;

22 ‘‘(4) provides a description of the project nec23 essary to implement the strategy, estimates of costs,

24 and timetables; and
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1 ‘‘(5) provides a summary of public and private

2 resources expected to be available for the project.

3 ‘‘SEC. 504. APPROVAL OF PROJECTS.

4 ‘‘Only applications for grants or other assistance

5 under this Act for specific projects shall be approved which

6 are certified by the State representing such applicant and

7 determined by the Administrator—

8 ‘‘(1) to be included in a State investment strat9 egy;

10 ‘‘(2) to have adequate assurance that the

11 project will be properly administered, operated, and

12 maintained; and

13 ‘‘(3) to otherwise meet the requirements for as14 sistance under this Act.

15 ‘‘PART B—ECONOMIC DEVELOPMENT DISTRICTS

16 ‘‘SEC. 510. DESIGNATION OF ECONOMIC DEVELOPMENT

17 DISTRICTS AND ECONOMIC DEVELOPMENT

18 CENTERS.

19 ‘‘(a) IN GENERAL.—In order that economic develop20 ment projects of broader geographic significance may be

21 planned and carried out, the Administrator may—

22 ‘‘(1) designate appropriate ‘economic develop23 ment districts’ within the United States with the

24 concurrence of the States in which such districts will

25 be wholly or partially located, if—
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1 ‘‘(A) the proposed district is of sufficient

2 size or population, and contains sufficient re3 sources, to foster economic development on a

4 scale involving more than a single area de5 scribed in section 502(a);

6 ‘‘(B) the proposed district contains at least

7 1 area described in section 502(a);

8 ‘‘(C) the proposed district contains 1 or

9 more areas described in section 502(a) or eco10 nomic development centers identified in an ap11 proved district investment strategy as having

12 sufficient size and potential to foster the eco13 nomic growth activities necessary to alleviate

14 the distress of the areas described in section

15 502(a) within the district; and

16 ‘‘(D) the proposed district has a district

17 investment strategy which includes adequate

18 land use and transportation planning and con19 tains a specific program for district cooperation,

20 self-help, and public investment and is approved

21 by the State or States affected and by the Ad22 ministrator;

23 ‘‘(2) designate as ‘economic development cen24 ters’, in accordance with such regulations as the Ad-
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1 ministrator shall prescribe, such areas as the Admin2 istrator may deem appropriate, if—

3 ‘‘(A) the proposed center has been identi4 fied and included in an approved district invest5 ment strategy and recommended by the State

6 or States affected for such special designation;

7 ‘‘(B) the proposed center is geographically

8 and economically so related to the district that

9 its economic growth may reasonably be expected

10 to contribute significantly to the alleviation of

11 distress in the areas described in section 502(a)

12 of the district; and

13 ‘‘(C) the proposed center does not have a

14 population in excess of 250,000 according to

15 the most recent Federal census.

16 ‘‘(3) provide financial assistance in accordance

17 with the criteria of this Act, except as may be herein

18 otherwise provided, for projects in economic develop19 ment centers designated under subsection (a)(2),

20 if—

21 ‘‘(A) the project will further the objectives

22 of the investment strategy of the district in

23 which it is to be located;

24 ‘‘(B) the project will enhance the economic

25 growth potential of the district or result in ad-
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1 ditional long-term employment opportunities

2 commensurate with the amount of Federal fi3 nancial assistance requested; and

4 ‘‘(C) the amount of Federal financial as5 sistance requested is reasonably related to the

6 size, population, and economic needs of the dis7 trict;

8 ‘‘(4) subject to the 50 percent non-Federal

9 share required for any project by section 201(c), in10 crease the amount of grant assistance authorized by

11 section 201 for projects within areas described in

12 section 502(a), by an amount not to exceed 10 per13 cent of the aggregate cost of any such project, in ac14 cordance with such regulations as the Administrator

15 shall prescribe if—

16 ‘‘(A) the area described in section 502(a)

17 is situated within a designated economic devel18 opment district and is actively participating in

19 the economic development activities of the dis20 trict; and

21 ‘‘(B) the project is consistent with an ap22 proved investment strategy.

23 ‘‘(b) AUTHORITIES.—In designating economic devel24 opment districts and approving district investment strate-
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1 gies under subsection (a), the Administrator may, under

2 regulations prescribed by the Administrator—

3 ‘‘(1) invite the several States to draw up pro4 posed district boundaries and to identify potential

5 economic development centers;

6 ‘‘(2) cooperate with the several States—

7 ‘‘(A) in sponsoring and assisting district

8 economic planning and development groups;

9 and

10 ‘‘(B) in assisting such district groups to

11 formulate district investment strategies; and

12 ‘‘(3) encourage participation by appropriate

13 local governmental authorities in such economic de14 velopment districts.

15 ‘‘(c) TERMINATION OR MODIFICATION OF DESIGNA16 TIONS.—The Administrator shall by regulation prescribe

17 standards for the termination or modification of economic

18 development districts and economic development centers

19 designated under the authority of this section.

20 ‘‘(d) DEFINITIONS.—In this Act, the following defini21 tions apply:

22 ‘‘(1) ECONOMIC DEVELOPMENT DISTRICT.—The

23 term ‘economic development district’ refers to any

24 area within the United States composed of cooperat25 ing areas described in section 502(a) and, where ap-
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1 propriate, designated economic development centers

2 and neighboring counties or communities, which has

3 been designated by the Administrator as an eco4 nomic development district. Such term includes any

5 economic development district designated under sec6 tion 403 of this Act, as in effect on the day before

7 the effective date specified in section 802.

8 ‘‘(2) ECONOMIC DEVELOPMENT CENTER.—The

9 term ‘economic development center’ refers to any

10 area within the United States which has been identi11 fied as an economic development center in an ap12 proved investment strategy and which has been des13 ignated by the Administrator as eligible for financial

14 assistance under this Act in accordance with the

15 provisions of this section.

16 ‘‘(3) LOCAL GOVERNMENT.—The term ‘local

17 government’ means any city, county, town, parish,

18 village, or other general-purpose political subdivision

19 of a State.

20 ‘‘(e) PARTS OF ECONOMIC DEVELOPMENT DISTRICTS

21 NOT WITHIN AREAS DESCRIBED IN SECTION 502(a).—

22 The Administrator is authorized to provide the financial

23 assistance which is available to an area described in sec24 tion 502(a) under this Act to those parts of an economic

25 development district which are not within an area de-
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1 scribed in section 502(a), when such assistance will be of

2 a substantial direct benefit to an area described in section

3 502(a) within such district. Such financial assistance shall

4 be provided in the same manner and to the same extent

5 as is provided in this Act for an area described in section

6 502(a); except that nothing in this subsection shall be con7 strued to permit such parts to receive the increase in the

8 amount of grant assistance authorized in subsection

9 (a)(4).

10 ‘‘TITLE VI—ADMINISTRATION

11 ‘‘SEC. 601. APPOINTMENT OF ASSOCIATE ADMINISTRATOR;

12 FULL TIME EQUIVALENT EMPLOYEES.

13 ‘‘(a) APPOINTMENT.—The Administrator shall carry

14 out the duties vested in the Administrator by this Act act15 ing through an Associate Administrator of the Small Busi16 ness Administration, who shall be appointed by the Presi17 dent by and with the advice and consent of the Senate.

18 ‘‘(b) PAY.—The Associate Administrator shall be

19 compensated by the Federal Government at the rate pre20 scribed for level V of the Executive Schedule under section

21 5316 of title 5, United States Code.

22 ‘‘(c) FULL TIME EQUIVALENT EMPLOYEES.—The

23 Administrator shall assign not to exceed 25 full time

24 equivalent employees of the Small Business Administra25 tion (excluding the Associate Administrator) to assist the
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1 Administrator in the carrying out the duties vested in the

2 Administrator by this Act.

3 ‘‘SEC. 602. REGIONAL COOPERATIVE AGREEMENTS.

4 ‘‘(a) IN GENERAL.—The Administrator shall make

5 grants and carry out such other functions under this Act

6 as the Administrator considers appropriate by entering

7 into cooperative agreements with 1 or more States on a

8 regional basis. Each State entering into such an agree9 ment shall be represented by the chief executive officer

10 of the State.

11 ‘‘(b) TERMS AND CONDITIONS.—A cooperative agree12 ment entered into under subsection (a) shall include such

13 terms and conditions as the Administrator determines are

14 necessary to carry out the provisions of this Act. Such

15 terms and conditions at a minimum shall provide that no

16 decision concerning regional policies or approval of project

17 or grant applications may be made without the consent

18 of the Administrator and a majority of the States partici19 pating in the cooperative agreement.

20 ‘‘(c) PARTICIPATION NOT REQUIRED.—No State

21 shall be required to enter into a cooperative agreement

22 under this section or to participate in any program estab23 lished by this Act.
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1 ‘‘SEC. 603. ADMINISTRATIVE EXPENSES.

2 ‘‘(a) PAYMENT BY STATES.—Fifty percent of the ad3 ministrative expenses incurred by States in participating

4 in a cooperative agreement entered into under section 602

5 shall be paid by such States and the remaining 50 percent

6 of such expenses shall be paid by the Federal Government.

7 ‘‘(b) DETERMINATION OF STATE SHARE.—The share

8 of the administrative expenses to be paid by each State

9 participating in a cooperative agreement shall be deter10 mined by a majority vote of such States. The Adminis11 trator may not participate or vote in such determination.

12 ‘‘(c) DELINQUENT PAYMENTS.—No assistance au13 thorized by this Act shall be furnished to any State or

14 to any political subdivision or resident of a State, nor shall

15 the State participate or vote in any decision described in

16 section 602(b), while such State is delinquent in the pay17 ment of such State’s share of the administrative expenses

18 described in subsection (a).

19 ‘‘SEC. 604. FEDERAL SHARE.

20 ‘‘Except as otherwise expressly provided by this Act,

21 the Federal share of the cost of any project funded with

22 amounts made available under this Act shall not exceed

23 50 percent of such cost.

24 ‘‘SEC. 605. COOPERATION OF FEDERAL AGENCIES.

25 ‘‘Each Federal department and agency, in accordance

26 with applicable laws and within the limits of available
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1 funds, shall cooperate with the Administrator in order to

2 assist the Administrator in carrying out the functions of

3 the Administrator.

4 ‘‘SEC. 606. CONSULTATION WITH OTHER PERSONS AND

5 AGENCIES.

6 ‘‘(a) CONSULTATION ON PROBLEMS RELATING TO

7 EMPLOYMENT.—The Administrator is authorized from

8 time to time to call together and confer with any persons,

9 including representatives of labor, management, agri10 culture, and government, who can assist in meeting the

11 problems of area and regional unemployment or

12 underemployment.

13 ‘‘(b) CONSULTATION ON ADMINISTRATION OF ACT.—

14 The Administrator may make provisions for such consulta15 tion with interested departments and agencies as the Ad16 ministrator may deem appropriate in the performance of

17 the functions vested in the Administrator by this Act.

18 ‘‘SEC. 607. ADMINISTRATION, OPERATION, AND MAINTE19 NANCE.

20 ‘‘No Federal assistance shall be approved under this

21 Act unless the Administrator is satisfied that the project

22 for which Federal assistance is granted will be properly

23 and efficiently administered, operated, and maintained.
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1 ‘‘TITLE VII—MISCELLANEOUS

2 ‘‘SEC. 701. POWERS OF ADMINISTRATOR.

3 ‘‘(a) IN GENERAL.—In performing the Administra4 tor’s duties under this Act, the Administrator is author5 ized to—

6 ‘‘(1) adopt, alter, and use a seal, which shall be

7 judicially noticed;

8 ‘‘(2) subject to the civil-service and classifica9 tion laws, select, employ, appoint, and fix the com10 pensation of such personnel as may be necessary to

11 carry out the provisions of this Act;

12 ‘‘(3) hold such hearings, sit and act at such

13 times and places, and take such testimony, as the

14 Administrator may deem advisable;

15 ‘‘(4) request directly from any executive depart16 ment, bureau, agency, board, commission, office,

17 independent establishment, or instrumentality infor18 mation, suggestions, estimates, and statistics needed

19 to carry out the purposes of this Act; and each de20 partment, bureau, agency, board, commission, office,

21 establishment, or instrumentality is authorized to

22 furnish such information, suggestions, estimates,

23 and statistics directly to the Administrator;

24 ‘‘(5) under regulations prescribed by the Ad25 ministrator, assign or sell at public or private sale,
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1 or otherwise dispose of for cash or credit, in the Ad2 ministrator’s discretion and upon such terms and

3 conditions and for such consideration as the Admin4 istrator determines to be reasonable, any evidence of

5 debt, contract, claim, personal property, or security

6 assigned to or held by the Administrator in connec7 tion with assistance extended under this Act, and

8 collect or compromise all obligations assigned to or

9 held by the Administrator in connection with such

10 assistance until such time as such obligations may

11 be referred to the Attorney General for suit or col12 lection;

13 ‘‘(6) deal with, complete, renovate, improve,

14 modernize, insure, rent, or sell for cash or credit,

15 upon such terms and conditions and for such consid16 eration as the Administrator determines to be rea17 sonable, any real or personal property conveyed to,

18 or otherwise acquired by the Administrator in con19 nection with assistance extended under this Act;

20 ‘‘(7) pursue to final collection, by way of com21 promise or other administrative action, prior to ref22 erence to the Attorney General, all claims against

23 third parties assigned to the Administrator in con24 nection with assistance extended this Act;
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1 ‘‘(8) acquire, in any lawful manner and in ac2 cordance with the requirements of the Federal Prop3 erty and Administrative Services Act of 1949, any

4 property (real, personal, or mixed, tangible or intan5 gible), whenever necessary or appropriate to the con6 duct of the activities authorized under this Act;

7 ‘‘(9) in addition to any powers, functions, privi8 leges, and immunities otherwise vested in the Ad9 ministrator, take any action, including the procure10 ment of the services of attorneys by contract, deter11 mined by the Administrator to be necessary or desir12 able in making, purchasing, servicing, compromising,

13 modifying, liquidating, or otherwise administratively

14 dealing with assets held in connection with financial

15 assistance extended under this Act;

16 ‘‘(10) employ experts and consultants or organi17 zations as authorized by section 3109 of title 5,

18 United States Code, compensate individuals so em19 ployed at rates not in excess of $100 per diem, in20 cluding travel time, and allow them, while away from

21 their homes or regular places of business, travel ex22 penses (including per diem in lieu of subsistence) as

23 authorized by section 5703 of title 5, United States

24 Code, for persons in the Government service em25 ployed intermittently, while so employed, except that
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1 contracts for such employment may be renewed an2 nually;

3 ‘‘(11) sue and be sued in any court of record

4 of a State having general jurisdiction or in any Unit5 ed States district court, and jurisdiction is conferred

6 upon such district court to determine such con7 troversies without regard to the amount in con8 troversy; but no attachment, injunction, garnish9 ment, or other similar process, mesne or final, shall

10 be issued against the Administrator or the Adminis11 trator’s property;

12 ‘‘(12) make discretionary grants, pursuant to

13 authorities otherwise available to the Administrator

14 under this Act and without regard to the require15 ments of section 504, to implement significant re16 gional initiatives, to take advantage of special devel17 opment opportunities, or to respond to emergency

18 economic distress in a region from the funds with19 held from distribution by the Administrator; except

20 that the aggregate amount of such discretionary

21 grants in any fiscal year may not exceed 10 percent

22 of the amounts appropriated under title VIII for

23 such fiscal year;

24 ‘‘(13) allow a State to use not to exceed 5 per25 cent of the total of amounts received by the State
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1 in a fiscal year in grants under this Act for reason2 able expenses incurred by the State in administering

3 such amounts; and

4 ‘‘(14) establish such rules, regulations, and pro5 cedures as the Administrator considers appropriate

6 in carrying out the provisions of this Act.

7 ‘‘(b) DEFICIENCY JUDGMENTS.—The authority

8 under subsection (a)(7) to pursue claims shall include the

9 authority to obtain deficiency judgments or otherwise in

10 the case of mortgages assigned to the Administrator.

11 ‘‘(c) INAPPLICABILITY OF CERTAIN OTHER RE12 QUIREMENTS.—Section 3709 of the Revised Statutes of

13 the United States shall not apply to any contract of haz14 ard insurance or to any purchase or contract for services

15 or supplies on account of property obtained by the Admin16 istrator as a result of assistance extended under this Act

17 if the premium for the insurance or the amount of the

18 insurance does not exceed $1,000.

19 ‘‘(d) POWERS OF CONVEYANCE AND EXECUTION.—

20 The power to convey and to execute, in the name of the

21 Administrator, deeds of conveyance, deeds of release, as22 signments and satisfactions of mortgages, and any other

23 written instrument relating to real or personal property

24 or any interest therein acquired by the Administrator pur25 suant to the provisions of this Act may be exercised by
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1 the Administrator, or by any officer or agent appointed

2 by the Administrator for such purpose, without the execu3 tion of any express delegation of power or power of attor4 ney.

5 ‘‘SEC. 702. ESTABLISHMENT OF CLEARINGHOUSE.

6 ‘‘In carrying out the Administrator’s duties under

7 this Act, the Administrator shall ensure that the Small

8 Business Administration—

9 ‘‘(1) serves as a central information clearing10 house on matters relating to economic development,

11 economic adjustment, disaster recovery, and defense

12 conversion programs and activities of the Federal

13 and State governments, including political subdivi14 sions of the States; and

15 ‘‘(2) helps potential and actual applicants for

16 economic development, economic adjustment, disas17 ter recovery, and defense conversion assistance

18 under Federal, State, and local laws in locating and

19 applying for such assistance, including financial and

20 technical assistance.

21 ‘‘SEC. 703. PERFORMANCE MEASURES.

22 ‘‘The Administrator shall establish performance

23 measures for grants and other assistance provided under

24 this Act. Such performance measures shall be used to
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1 evaluate project proposals and conduct evaluations of

2 projects receiving such assistance.

3 ‘‘SEC. 704. MAINTENANCE OF STANDARDS.

4 ‘‘The Administrator shall continue to implement and

5 enforce the provisions of section 712 of this Act, as in

6 effect on the day before the effective date specified in sec7 tion 802.

8 ‘‘SEC. 705. TRANSFER OF FUNCTIONS.

9 ‘‘The functions, powers, duties, and authorities and

10 the assets, funds, contracts, loans, liabilities, commit11 ments, authorizations, allocations, and records which are

12 vested in or authorized to be transferred to the Secretary

13 of the Treasury under section 29(b) of the Area Redevel14 opment Act, and all functions, powers, duties, and authori15 ties under section 29(c) of such Act are hereby vested in

16 the Administrator.

17 ‘‘SEC. 706. DEFINITION OF STATE.

18 ‘‘In this Act, the terms ‘State’, ‘States’, and ‘United

19 States’ include the several States, the District of Colum20 bia, Puerto Rico, the Virgin Islands, American Samoa,

21 Guam, the Marshall Islands, Micronesia, and the North22 ern Mariana Islands.

23 ‘‘SEC. 707. ANNUAL REPORT TO CONGRESS.

24 ‘‘The Administrator shall transmit to Congress a

25 comprehensive and detailed annual report of the Adminis-
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1 trator’s operations under this Act for each fiscal year be2 ginning with the fiscal year ending September 30, 1996.

3 Such report shall be printed and shall be transmitted to

4 Congress not later than April 1 of the year following the

5 fiscal year with respect to which such report is made.

6 ‘‘SEC. 708. USE OF OTHER FACILITIES.

7 ‘‘(a) DELEGATION OF FUNCTIONS TO OTHER FED8 ERAL DEPARTMENTS AND AGENCIES.—The Adminis9 trator may delegate to the heads of other departments and

10 agencies of the Federal Government any of the Adminis11 trator’s functions, powers, and duties under this Act as

12 the Administrator may deem appropriate, and to authorize

13 the redelegation of such functions, powers, and duties by

14 the heads of such departments and agencies.

15 ‘‘(b) DEPARTMENT AND AGENCY EXECUTION OF

16 DELEGATED AUTHORITY.—Departments and agencies of

17 the Federal Government shall exercise their powers, du18 ties, and functions in such manner as will assist in carry19 ing out the objectives of this Act.

20 ‘‘(c) TRANSFER BETWEEN DEPARTMENTS.—Funds

21 authorized to be appropriated under this Act may be

22 transferred between departments and agencies of the Gov23 ernment, if such funds are used for the purposes for which

24 they are specifically authorized and appropriated.
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1 ‘‘(d) FUNDS TRANSFERRED FROM OTHER DEPART2 MENTS AND AGENCIES.—In order to carry out the objec3 tives of this Act, the Administrator may accept transfers

4 of funds from other departments and agencies of the Fed5 eral Government if the funds are used for the purposes

6 for which (and in accordance with the terms under which)

7 the funds are specifically authorized and appropriated.

8 Such transferred funds shall remain available until ex9 pended, and may be transferred to and merged with the

10 appropriations under the heading ‘salaries and expenses’

11 by the Administrator to the extent necessary to administer

12 the program.

13 ‘‘SEC. 709. EMPLOYMENT OF EXPEDITERS AND ADMINIS14 TRATIVE EMPLOYEES.

15 ‘‘No financial assistance shall be extended by the Ad16 ministrator under this Act to any business enterprise un17 less the owners, partners, or officers of such business en18 terprise—

19 ‘‘(1) certify to the Administrator the names of

20 any attorneys, agents, and other persons engaged by

21 or on behalf of such business enterprise for the pur22 pose of expediting applications made to the Adminis23 trator for assistance of any sort, under this Act, and

24 the fees paid or to be paid to any such person; and
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1 ‘‘(2) execute an agreement binding such busi2 ness enterprise, for a period of 2 years after such

3 assistance is rendered by the Administrator to such

4 business enterprise, to refrain from employing, ten5 dering any office or employment to, or retaining for

6 professional services, any person who, on the date

7 such assistance or any part thereof was rendered, or

8 within the 1-year period ending on such date, shall

9 have served as an officer, attorney, agent, or em10 ployee, occupying a position or engaging in activities

11 which the Administrator determines involves discre12 tion with respect to the granting of assistance under

13 this Act.

14 ‘‘SEC. 710. MAINTENANCE OF RECORDS OF APPROVED AP15 PLICATIONS FOR FINANCIAL ASSISTANCE;

16 PUBLIC INSPECTION.

17 ‘‘(a) MAINTENANCE OF RECORD REQUIRED.—The

18 Administrator shall maintain as a permanent part of the

19 records of the Small Business Administration a list of ap20 plications approved for financial assistance under this Act,

21 which shall be kept available for public inspection during

22 the regular business hours of the Small Business Adminis23 tration.
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1 ‘‘(b) POSTING TO LIST.—The following information

2 shall be posted in such list as soon as each application

3 is approved:

4 ‘‘(1) The name of the applicant and, in the case

5 of corporate applications, the names of the officers

6 and directors thereof.

7 ‘‘(2) The amount and duration of the financial

8 assistance for which application is made.

9 ‘‘(3) The purposes for which the proceeds of the

10 financial assistance are to be used.

11 ‘‘SEC. 711. RECORDS AND AUDIT.

12 ‘‘(a) RECORDKEEPING AND DISCLOSURE REQUIRE13 MENTS.—Each recipient of assistance under this Act shall

14 keep such records as the Administrator shall prescribe, in15 cluding records which fully disclose the amount and the

16 disposition by such recipient of the proceeds of such assist17 ance, the total cost of the project or undertaking in con18 nection with which such assistance is given or used, and

19 the amount and nature of that portion of the cost of the

20 project or undertaking supplied by other sources, and such

21 other records as will facilitate an effective audit.

22 ‘‘(b) ACCESS TO BOOKS FOR EXAMINATION AND

23 AUDIT.—The Administrator and the Comptroller General

24 of the United States, or any of their duly authorized rep25 resentatives, shall have access for the purpose of audit and
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1 examination to any books, documents, papers, and records

2 of the recipient that are pertinent to assistance received

3 under this Act.

4 ‘‘SEC. 712. PROHIBITION AGAINST A STATUTORY CON5 STRUCTION WHICH MIGHT CAUSE DIMINU6 TION IN OTHER FEDERAL ASSISTANCE.

7 ‘‘All financial and technical assistance authorized

8 under this Act shall be in addition to any Federal assist9 ance previously authorized, and no provision of this Act

10 shall be construed as authorizing or permitting any reduc11 tion or diminution in the proportional amount of Federal

12 assistance to which any State or other entity eligible under

13 this Act would otherwise be entitled under the provisions

14 of any other Act.

15 ‘‘SEC. 713. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.

16 ‘‘The Administrator may accept, when deemed appro17 priate, the applicants’ certifications to meet the require18 ments of this Act.

19 ‘‘TITLE VIII—FUNDING;

20 EFFECTIVE DATE

21 ‘‘SEC. 801. AUTHORIZATION OF APPROPRIATIONS

22 ‘‘There is authorized to be appropriated to carry out

23 this Act $340,000,000 per fiscal year for each of fiscal

24 years 1996, 1997, 1998, 1999, and 2000. Such sums shall

25 remain available until expended.
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1 ‘‘SEC. 802. EFFECTIVE DATE.

2 ‘‘The effective date specified in this section is the

3 abolishment date specified in section 2101(c) of the De4 partment of Commerce Dismantling Act.’’.

5 (b) CONFORMING AMENDMENTS TO TITLE 5.—Sec6 tion 5316 of title 5, United States Code, is amended—

7 (1) by striking ‘‘Associate Administrators of the

8 Small Business Administration (4)’’ and inserting

9 ‘‘Associate Administrators of the Small Business

10 Administration (5)’’; and

11 (2) by striking ‘‘Administrator for Economic

12 Development.’’.

13 (c) GAO STUDY.—On or before December 30, 1996,

14 the Comptroller General shall submit to Congress a plan

15 or plans for consolidating economic development programs

16 throughout the Federal Government. The plan or plans

17 shall focus on, but not be limited to, consolidating pro18 grams included in the Catalogue of Federal Domestic As19 sistance with similar purposes and target populations. The

20 plan or plans shall detail how consolidation can lead to

21 improved grant or program management, improvements in

22 achieving program goals, and reduced costs.

23 SEC. 2202. TECHNOLOGY ADMINISTRATION.

24 (a) TECHNOLOGY ADMINISTRATION.—
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1 (1) GENERAL RULE.—Except as otherwise pro2 vided in this section, the Technology Administration

3 is terminated.

4 (2) OFFICE OF TECHNOLOGY POLICY.—The Of5 fice of Technology Policy is terminated.

6 (b) NATIONAL INSTITUTE OF STANDARDS AND

7 TECHNOLOGY.—

8 (1) REDESIGNATION.—The National Institute

9 of Standards and Technology is hereby redesignated

10 as the National Bureau of Standards, and all ref11 erences to the National Institute of Standards and

12 Technology in Federal law or regulations are deemed

13 to be references to the National Bureau of Stand14 ards.

15 (2) GENERAL RULE.—The National Bureau of

16 Standards (in this subsection referred to as the

17 ‘‘Bureau’’) is transferred to the National Scientific,

18 Oceanic, and Atmospheric Administration, estab19 lished under section 2206.

20 (3) FUNCTIONS OF DIRECTOR.—Except as oth21 erwise provided in this section or section 2207, upon

22 the transfer under paragraph (2), the Director of

23 the Bureau shall perform all functions relating to

24 the Bureau that, immediately before the effective

25 date specified in section 2208(a), were functions of
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1 the Secretary of Commerce or the Under Secretary

2 of Commerce for Technology.

3 (c) NATIONAL TECHNICAL INFORMATION SERV4 ICE.—

5 (1) PRIVATIZATION.—All functions of the Na6 tional Technical Information Service are transferred

7 to the Director of Office of Management and Budget

8 for privatization in accordance with section 2108 be9 fore the end of the 18-month period beginning on

10 the date of the enactment of this Act.

11 (2) TRANSFER TO NATIONAL SCIENTIFIC, OCE12 ANIC, AND ATMOSPHERIC ADMINISTRATION.—If an

13 appropriate arrangement for the privatization of

14 functions of the National Technical Information

15 Service under paragraph (1) has not been made be16 fore the end of the period described in that para17 graph, the National Technical Information Service

18 shall be transferred as of the end of such period to

19 the National Scientific, Oceanic, and Atmospheric

20 Administration established by section 2206.

21 (3) GOVERNMENT CORPORATION.—If an appro22 priate arrangement for the privatization of functions

23 of the National Technical Information Service under

24 paragraph (1) has not been made before the end of

25 the period described in that paragraph, the Director
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1 of the Office of Management and Budget shall, with2 in 6 months after the end of such period, submit to

3 Congress a proposal for legislation to establish the

4 National Technical Information Service as a wholly

5 owned Government corporation. The proposal should

6 provide for the corporation to perform substantially

7 the same functions that, as of the date of enactment

8 of this Act, are performed by the National Technical

9 Information Service.

10 (4) FUNDING.—No funds are authorized to be

11 appropriated for the National Technical Information

12 Service or any successor corporation established pur13 suant to a proposal under paragraph (3).

14 (d) AMENDMENTS.—

15 (1) NATIONAL INSTITUTE OF STANDARDS AND

16 TECHNOLOGY ACT.—The National Institute of

17 Standards and Technology Act (15 U.S.C. 271 et

18 seq.) is amended—

19 (A) in section 2(b), by striking paragraph

20 (1) and redesignating paragraphs (2) through

21 (11) as paragraphs (1) through (10), respec22 tively;

23 (B) in section 2(d), by striking ‘‘, including

24 the programs established under sections 25, 26,

25 and 28 of this Act’’;
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1 (C) in section 10, by striking ‘‘Advanced’’

2 in both the section heading and subsection (a),

3 and inserting in lieu thereof ‘‘Standards and’’;

4 and

5 (D) by striking sections 24, 25, 26, and

6 28.

7 (2) STEVENSON-WYDLER TECHNOLOGY INNOVA8 TION ACT OF 1980.—The Stevenson-Wydler Tech9 nology Innovation Act of 1980 (15 U.S.C. 3701 et

10 seq.) is amended—

11 (A) in section 3, by striking paragraph (2)

12 and redesignating paragraphs (3) through (5)

13 as paragraphs (2) through (4), respectively;

14 (B) in section 4, by striking paragraphs

15 (1), (4), and (13) and redesignating paragraphs

16 (2), (3), (5), (6), (7), (8), (9), (10), (11), and

17 (12) as paragraphs (1) through (10), respec18 tively;

19 (C) by striking sections 5, 6, 7, 8, 9, and

20 10;

21 (D) in section 11—

22 (i) by striking ‘‘, the Federal Labora23 tory Consortium for Technology Transfer,’’

24 in subsection (c)(3);
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1 (ii) by striking ‘‘and the Federal Lab2 oratory Consortium for Technology Trans3 fer’’ in subsection (d)(2);

4 (iii) by striking ‘‘, and refer such re5 quests’’ and all that follows through ‘‘avail6 able to the Service’’ in subsection (d)(3);

7 and

8 (iv) by striking subsection (e); and

9 (E) in section 17—

10 (i) by striking ‘‘Subject to paragraph

11 (2), separate’’ in subsection (c)(1) and in12 serting in lieu thereof ‘‘Separate’’;

13 (ii) by striking paragraph (2) of sub14 section (c) and redesignating paragraph

15 (3) as paragraph (2);

16 (iii) by striking ‘‘funds to carry out’’

17 in subsection (f), and inserting in lieu

18 thereof ‘‘funds only to pay the salary of

19 the Director of the Office of Quality Pro20 grams, who shall be responsible for carry21 ing out’’; and

22 (iv) by adding at the end the following

23 new subsection:

24 ‘‘(h) VOLUNTARY AND UNCOMPENSATED SERV25 ICES.—The Director of the Office of Quality Programs
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1 may accept voluntary and uncompensated services not2 withstanding the provisions of section 1342 of title 31,

3 United States Code.’’.

4 (3) MISCELLANEOUS AMENDMENTS.—Section 3

5 of Public Law 94–168 (15 U.S.C. 205b) is amend6 ed—

7 (A) by striking paragraph (2);

8 (B) by redesignating paragraphs (3) and

9 (4) as paragraphs (2) and (3), respectively; and

10 (C) in paragraph (3), as so redesignated

11 by subparagraph (B) of this paragraph, by

12 striking ‘‘in nonbusiness activities’’.

13 SEC. 2203. REORGANIZATION OF THE BUREAU OF THE CEN14 SUS AND THE BUREAU OF ECONOMIC ANALY15 SIS.

16 (a) TRANSFER OF FUNCTIONS.—All functions of the

17 Secretary of Commerce relating to the Bureau of the Cen18 sus and the Bureau of Economic Analysis of the Depart19 ment of Commerce are transferred to the Secretary of

20 Labor.

21 (b) TRANSFER OF BUREAUS.—The Bureau of the

22 Census and Bureau of Economic Analysis of the Depart23 ment of Commerce are transferred to the Department of

24 Labor.
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1 (c) CONSOLIDATION WITH THE BUREAU OF LABOR

2 STATISTICS.—The Secretary of Labor shall consolidate

3 the Bureaus transferred under subsection (b) with the Bu4 reau of Labor Statistics within the Department of Labor.

5 (d) REFERENCES TO SECRETARY.—Section 1(2) of

6 the title 13, United States Code, is amended by striking

7 out ‘‘Secretary of Commerce’’ and inserting in lieu thereof

8 ‘‘Secretary of Labor’’.

9 (e) REFERENCES TO DEPARTMENT.—Section 2 of

10 title 13, United States Code, is amended by striking out

11 ‘‘Department of Commerce’’ and inserting in lieu thereof

12 ‘‘Department of Labor’’.

13 (f) GENERAL REFERENCES TO SECRETARY AND DE14 PARTMENT.—The provisions of title 13, United States

15 Code, are further amended—

16 (1) by striking out ‘‘Secretary of Commerce’’

17 each place such term appears and insert in lieu

18 thereof ‘‘Secretary of Labor’’; and

19 (2) by striking out ‘‘Department of Commerce’’

20 each place such term appears and inserting in lieu

21 thereof ‘‘Department of Labor’’.

22 (g) SUBMISSION OF PLAN.—Within 180 days after

23 the date of enactment of this Act, the President shall

24 transmit to the Congress—
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1 (1) a determination of the feasibility and poten2 tial savings resulting from the further consolidation

3 of statistical functions throughout the Government

4 into a single agency; and

5 (2) draft legislation under which the provisions

6 of title 13, United States Code, relating to confiden7 tiality (including offenses and penalties) shall be ap8 plied after the consolidation under subsection (c) has

9 been effected.

10 (h) SENSE OF THE CONGRESS.—It is the sense of

11 the Congress that the Bureau of the Census or the agency

12 established as a result of the consolidation under sub13 section (c) should—

14 (1) make appropriate use of any authority af15 forded to it by the Census Address List Improve16 ment Act of 1994 (Public Law 103–430; 108 Stat.

17 4393), and take measures to ensure the timely im18 plementation of such Act; and

19 (2) streamline census questionnaires to promote

20 savings in the collection and tabulation of data.

21 SEC. 2204. TERMINATED FUNCTIONS OF NTIA.

22 (a) REPEALS.—The following provisions of law are

23 repealed:

24 (1) Subpart A of part IV of title III of the

25 Communications Act of 1934 (47 U.S.C. 390 et
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1 seq.), relating to assistance for public telecommuni2 cations facilities.

3 (2) Subpart B of part IV of title III of the

4 Communications Act of 1934 (47 U.S.C. 394 et

5 seq.), relating to the Endowment for Children’s

6 Educational Television.

7 (3) Subpart C of part IV of title III of the

8 Communications Act of 1934 (47 U.S.C. 395 et

9 seq.), relating to Telecommunications Demonstration

10 grants.

11 (b) DISPOSAL OF NTIA LABORATORIES.—

12 (1) PRIVATIZATION.—All laboratories of the

13 National Telecommunications and Information Ad14 ministration are transferred to the Director of the

15 Office of Management and Budget for privatization

16 in accordance with section 2108 before the end of

17 the 18-month period beginning on the date of the

18 enactment of this Act.

19 (2) TRANSFER TO NATIONAL SCIENTIFIC, OCE20 ANIC, AND ATMOSPHERIC ADMINISTRATION.—If an

21 appropriate arrangement for the privatization of

22 functions of the laboratories of the National Tele23 communications and Information Administration

24 under paragraph (1) has not been made before the

25 end of the period described in that paragraph, the
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1 laboratories of the National Telecommunications and

2 Information Administration shall be transferred as

3 of the end of such period to the National Scientific,

4 Oceanic, and Atmospheric Administration estab5 lished by section 2206.

6 (3) TRANSFER OF FUNCTIONS.—The functions

7 of the National Telecommunications and Informa8 tion Administration concerning research and analy9 sis of the electromagnetic spectrum described in sec10 tion 5112(b) of the Omnibus Trade and Competi11 tiveness Act of 1988 (15 U.S.C. 1532) are trans12 ferred to the Director of the National Bureau of

13 Standards.

14 (c) TRANSFER OF NATIONAL TELECOMMUNICATIONS

15 AND INFORMATION ADMINISTRATION FUNCTIONS.—

16 (1) TRANSFER TO USTR.—Except as provided

17 in subsection (b)(2), the functions of the National

18 Telecommunications and Information Administra19 tion, and of the Secretary of Commerce and the As20 sistant Secretary for Communications and Informa21 tion of the Department of Commerce with respect to

22 the National Telecommunications and Information

23 Administration, are transferred to the United States

24 Trade Representative. The functions transferred by

25 this paragraph shall be placed in an organizational
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1 component that is independent from all USTR func2 tions directly related to the negotiation of trade

3 agreements. Such functions shall be supervised by

4 an individual whose principal professional expertise

5 is in the area of telecommunications. The position to

6 which such individual is appointed shall be graded at

7 a level sufficiently high to attract a highly qualified

8 individual, while ensuring autonomy in the conduct

9 of such functions from all activities and influences

10 associated with trade negotiations.

11 (2) REFERENCES.—References in any provision

12 of law (including the National Telecommunications

13 and Information Administration Organization Act)

14 to the Secretary of Commerce or the Assistant Sec15 retary for Communications and Information of the

16 Department of Commerce—

17 (A) with respect to a function vested pur18 suant to this section in the United States Trade

19 Representative shall be deemed to refer to the

20 United States Trade Representative; and

21 (B) with respect to a function vested pur22 suant to this section in the Director of the Na23 tional Bureau of Standards shall be deemed to

24 refer to the Director of the National Bureau of

25 Standards.
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1 (3) TERMINATION OF NTIA.—Effective on the

2 abolishment date specified in section 2101(c), the

3 National Telecommunications and Information Ad4 ministration is abolished.

5 SEC. 2205. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN6 ISTRATION.

7 (a) TERMINATION OF MISCELLANEOUS RESEARCH

8 PROGRAMS AND ACCOUNTS.—

9 (1) IN GENERAL.—No funds may be appro10 priated in any fiscal year for the following programs

11 and accounts of the National Scientific, Oceanic,

12 and Atmospheric Administration:

13 (A) The National Undersea Research Pro14 gram.

15 (B) The Fleet Modernization Program.

16 (C) The Charleston, South Carolina, Spe17 cial Management Plan.

18 (D) Chesapeake Bay Observation Buoys

19 (as of September 30, 1996).

20 (E) Federal/State Weather Modification

21 Grants.

22 (F) The Southeast Storm Research Ac23 count.
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1 (G) The Southeast United States Carib2 bean Fisheries Oceanographic Coordinated In3 vestigations Program.

4 (H) National Institute for Environmental

5 Renewal.

6 (I) The Lake Champlain Study.

7 (J) The Maine Marine Research Center.

8 (K) The South Carolina Cooperative Geo9 detic Survey Account.

10 (L) Pacific Island Technical Assistance.

11 (M) Sea Grant Oyster Disease Account.

12 (N) Sea Grant Zebra Mussel Account.

13 (O) VENTS program.

14 (P) National Weather Service non-Federal,

15 non-wildfire Weather Service.

16 (Q) National Weather Service Regional

17 Climate Centers.

18 (R) National Weather Service Samoa

19 Weather Forecast Office Repair and Upgrade

20 Account.

21 (S) Dissemination of Weather Charts (Ma22 rine Facsimile Service).

23 (T) The Climate and Global Change Ac24 count.
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1 (U) The Global Learning and Observations

2 to Benefit the Environment Program.

3 (V) Great Lakes nearshore research.

4 (W) Mussel watch.

5 (2) REPEALS.—The following provisions of law

6 are repealed:

7 (A) The Ocean Thermal Conversion Act of

8 1980 (42 U.S.C. 9101 et seq.).

9 (B) Title IV of the Marine Protection, Re10 search, and Sanctuaries Act of 1972 (16 U.S.C.

11 1447 et seq.).

12 (C) Title V of the Marine Protection, Re13 search, and Sanctuaries Act of 1972 (33 U.S.C.

14 2801 et seq.).

15 (D) The Great Lakes Shoreline Mapping

16 Act of 1987 (33 U.S.C. 883a note).

17 (E) The Great Lakes Fish and Wildlife

18 Tissue Bank Act (16 U.S.C. 943 et seq.).

19 (F) The Nonindigenous Aquatic Nuisance

20 Prevention and Control Act of 1990 (16 U.S.C.

21 4701 et seq.), except for those provisions affect22 ing the Assistant Secretary of the Army (civil

23 works) and the Secretary of the department in

24 which the Coast Guard is operating.
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1 (G) Section 3 of the Sea Grant Program

2 Improvement Act of 1976 (33 U.S.C. 1124a).

3 (H) Section 208(c) of the National Sea

4 Grant College Program Act (33 U.S.C.

5 1127(c)).

6 (I) Section 305 of the Coastal Zone Man7 agement Act of 1972 (16 U.S.C. 1454) is re8 pealed effective October 1, 1998.

9 (J) The NOAA Fleet Modernization Act

10 (33 U.S.C. 891 et seq.).

11 (K) Public Law 85–342 (72 Stat. 35; 16

12 U.S.C. 778 et seq.), relating to fish research

13 and experimentation.

14 (L) The first section of the Act of August

15 8, 1956 (70 Stat. 1126; 16 U.S.C. 760d), relat16 ing to grants for commercial fishing education.

17 (M) Public Law 86–359 (16 U.S.C. 760e

18 et seq.), relating to the study of migratory ma19 rine gamefish.

20 (N) The Act of August 15, 1914 (Chapter

21 253; 38 Stat. 692; 16 U.S.C. 781 et seq.), pro22 hibiting the taking of sponges in the Gulf of

23 Mexico and the Straits of Florida.

24 (b) AERONAUTICAL MAPPING AND CHARTING.—
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1 (1) IN GENERAL.—The aeronautical mapping

2 and charting functions of the National Oceanic and

3 Atmospheric Administration are transferred to the

4 Defense Mapping Agency.

5 (2) TERMINATION OF CERTAIN FUNCTIONS.—

6 The Defense Mapping Agency shall terminate any

7 functions transferred under paragraph (1) that are

8 performed by the private sector.

9 (3) FUNCTIONS REQUESTED BY FEDERAL AVIA10 TION ADMINISTRATION.—(A) Notwithstanding para11 graph (2), the Director of the Defense Mapping

12 Agency shall carry out such aeronautical charting

13 functions as may be requested by the Administrator

14 of the Federal Aviation Administration.

15 (B) In carrying out aeronautical mapping func16 tions requested by the Administrator under subpara17 graph (A), the Director shall—

18 (i) publish and distribute to the public and

19 to the Administrator any aeronautical charts re20 quested by the Administrator; and

21 (ii) provide to the Administrator such

22 other air traffic control products and services as

23 may be requested by the Administrator,

24 in such manner and including such information as

25 the Administrator determines is necessary for, or
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1 will promote, the safe and efficient movement of air2 craft in air commerce.

3 (4) CONTINUING APPLICABILITY.—The require4 ments of section 1307 of title 44, United States

5 Code, shall continue to apply with respect to all

6 aeronautical products created or published by the

7 Director of the Defense Mapping Agency in carrying

8 out the functions transferred to the Director under

9 this paragraph; except that the prices for such prod10 ucts shall be established jointly by the Director and

11 the Secretary of Transportation on an annual basis.

12 (c) TRANSFER OF MAPPING, CHARTING, AND GEOD13 ESY FUNCTIONS TO THE UNITED STATES GEOLOGICAL

14 SURVEY.—

15 (1) IN GENERAL.—Except as provided in sub16 section (b), there are hereby transferred to the Di17 rector of the United States Geological Survey the

18 functions relating to mapping, charting, and geodesy

19 authorized under the Act of August 7, 1947 (61

20 Stat. 787; 33 U.S.C. 883a).

21 (2) TERMINATION OF CERTAIN FUNCTIONS.—

22 The Director of the United States Geological Survey

23 shall terminate any functions transferred under

24 paragraph (1) that are performed by the private sec25 tor.
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1 (d) NESDIS.—There are transferred to the National

2 Scientific, Oceanic, and Atmospheric Administration all

3 functions and assets of the National Oceanic and Atmos4 pheric Administration that on the date immediately before

5 the effective date of this section were authorized to be per6 formed by the National Environmental Satellite, Data,

7 and Information System.

8 (e) OAR.—There are transferred to the National Sci9 entific, Oceanic, and Atmospheric Administration all func10 tions and assets of the National Oceanic and Atmospheric

11 Administration (including global programs) that on the

12 date immediately before the effective date of this section

13 were authorized to be performed by the Office of Oceanic

14 and Atmospheric Research.

15 (f) NWS.—

16 (1) IN GENERAL.—There are transferred to the

17 National Scientific, Oceanic, and Atmospheric Ad18 ministration all functions and assets of the National

19 Oceanic and Atmospheric Administration that on the

20 date immediately before the effective date of this

21 section were authorized to be performed by the Na22 tional Weather Service.

23 (2) DUTIES.—To protect life and property and

24 enhance the national economy, the Administrator of

25 Science, Oceans, and the Atmosphere, through the
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1 National Weather Service, except as outlined in

2 paragraph (3), shall be responsible for the following:

3 (A) Forecasts. The Administrator of

4 Science, Oceans, and the Atmosphere, through

5 the National Weather Service, shall serve as the

6 sole official source of severe weather warnings.

7 (B) Issuance of storm warnings.

8 (C) The collection, exchange, and distribu9 tion of meteorological, hydrological, climatic,

10 and oceanographic data and information.

11 (D) The preparation of hydro-meteorologi12 cal guidance and core forecast information.

13 (3) LIMITATIONS ON COMPETITION.—The Na14 tional Weather Service may not compete, or assist

15 other entities to compete, with the private sector to

16 provide a service when that service is currently pro17 vided or can be provided by a commercial enterprise

18 unless—

19 (A) the Administrator of Science, Oceans,

20 and the Atmosphere finds that the private sec21 tor is unwilling or unable to provide the service;

22 or

23 (B) the Administrator of Science, Oceans,

24 and the Atmosphere finds that the service pro25 vides vital weather warnings and forecasts for
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1 the protection of lives and property of the gen2 eral public.

3 (4) ORGANIC ACT AMENDMENTS.—

4 (A) AMENDMENTS.—The Act of 1890 is

5 amended—

6 (i) by striking section 3 (15 U.S.C.

7 313); and

8 (ii) in section 9 (15 U.S.C. 317), by

9 striking ‘‘Department of’’ and all that fol10 lows thereafter and inserting ‘‘National

11 Scientific, Oceanic, and Atmospheric Ad12 ministration.’’.

13 (B) DEFINITION.—For purposes of this

14 paragraph, the term ‘‘Act of 1890’’ means the

15 Act entitled ‘‘An Act to increase the efficiency

16 and reduce the expenses of the Signal Corps of

17 the Army, and to transfer the Weather Bureau

18 to the Department of Agriculture’’, approved

19 October 1, 1890 (26 Stat. 653).

20 (5) REPEAL.—Sections 706 and 707 of the

21 Weather Service Modernization Act (15 U.S.C. 313

22 note) are repealed.

23 (6) CONFORMING AMENDMENTS.—The Weather

24 Service Modernization Act (15 U.S.C. 313 note) is

25 amended—
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1 (A) in section 702, by striking paragraph

2 (3) and redesignating paragraphs (4) through

3 (10) as paragraphs (3) through (9), respec4 tively; and

5 (B) in section 703—

6 (i) by striking ‘‘(a) NATIONAL IMPLE7 MENTATION PLAN.—’’;

8 (ii) by striking paragraph (3) and re9 designating paragraphs (4), (5), and (6) as

10 paragraphs (3), (4), and (5), respectively;

11 and

12 (iii) by striking subsections (b) and

13 (c).

14 (g) TERMINATION OF THE NATIONAL OCEANIC AND

15 ATMOSPHERIC ADMINISTRATION CORPS OF COMMIS16 SIONED OFFICERS.—

17 (1) NUMBER OF OFFICERS.—Notwithstanding

18 section 8 of the Act of June 3, 1948 (33 U.S.C.

19 853g), the total number of commissioned officers on

20 the active list of the National Scientific, Oceanic,

21 and Atmospheric Administration shall not exceed—

22 (A) 358 as of September 30, 1996;

23 (B) 180 as of September 30, 1997; and

24 (C) 0 for any fiscal year beginning after

25 September 30, 1998.
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1 (2) SEPARATION PAY.—(A) Commissioned offi2 cers may be separated from the active list of the Na3 tional Scientific, Oceanic, and Atmospheric Adminis4 tration. Any officer so separated because of para5 graph (1) shall, subject to subparagraph (B) and the

6 availability of appropriations, be eligible for separa7 tion pay under section 9 of the Act of June 3, 1948

8 (33 U.S.C. 853h) to the same extent as if such offi9 cer had been separated under section 8 of such Act

10 (33 U.S.C. 853g).

11 (B) Any officer who, under paragraph (4),

12 transfers to another of the uniformed services or be13 comes employed in a civil service position shall not

14 be eligible for separation pay under this paragraph.

15 (C)(i) Any officer who receives separation pay

16 under this paragraph shall be required to repay the

17 amount received if, within 1 year after the date of

18 the separation on which the payment is based, such

19 officer is reemployed in a civil service position in the

20 National Scientific, Oceanic, and Atmospheric Ad21 ministration, the duties of which position would for22 merly have been performed by a commissioned offi23 cer, as determined by the Administrator of Science,

24 Oceans, and the Atmosphere.
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1 (ii) A repayment under this subparagraph shall

2 be made in a lump sum or in such installments as

3 the Administrator may specify.

4 (D) In the case of any officer who makes a re5 payment under subparagraph (C)—

6 (i) the National Scientific, Oceanic, and

7 Atmospheric Administration shall pay into the

8 Civil Service Retirement and Disability Fund,

9 on such officer’s behalf, any deposit required

10 under section 8422(e)(1) of title 5, United

11 States Code, with respect to any prior service

12 performed by that individual as such an officer;

13 and

14 (ii) if the amount paid under clause (i) is

15 less than the amount of the repayment under

16 subparagraph (C), the National Scientific, Oce17 anic, and Atmospheric Administration shall pay

18 into the Government Securities Investment

19 Fund (established under section 8438(b)(1)(A)

20 of title 5, United States Code), on such individ21 ual’s behalf, an amount equal to the difference.

22 The provisions of paragraph (5)(C)(iv) shall apply

23 with respect to any contribution to the Thrift Sav24 ings Plan made under clause (ii).
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1 (3) PRIORITY PLACEMENT PROGRAM.—A prior2 ity placement program similar to the programs de3 scribed in section 3329b of title 5, United States

4 Code, as amended by section 2109, shall be estab5 lished by the National Scientific, Oceanic, and At6 mospheric Administration to assist commissioned of7 ficers who are separated from the active list of the

8 National Scientific, Oceanic, and Atmospheric Ad9 ministration because of paragraph (1).

10 (4) TRANSFER.—(A) Subject to the approval of

11 the Secretary of Defense and under terms and con12 ditions specified by the Secretary, commissioned offi13 cers subject to paragraph (1) may transfer to the

14 Armed Forces under section 716 of title 10, United

15 States Code.

16 (B) Subject to the approval of the Secretary of

17 Transportation and under terms and conditions

18 specified by the Secretary, commissioned officers

19 subject to paragraph (1) may transfer to the United

20 States Coast Guard under section 716 of title 10,

21 United States Code.

22 (C) Subject to the approval of the Adminis23 trator of Science, Oceans, and the Atmosphere and

24 under terms and conditions specified by that Admin25 istrator, commissioned officers subject to paragraph
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1 (1) may be employed by the National Scientific, Oce2 anic, and Atmospheric Administration as members

3 of the civil service.

4 (5) RETIREMENT PROVISIONS.—(A) For com5 missioned officers who transfer under paragraph

6 (4)(A) to the Armed Forces, the National Scientific,

7 Oceanic, and Atmospheric Administration shall pay

8 into the Department of Defense Military Retirement

9 Fund an amount, to be calculated by the Secretary

10 of Defense in consultation with the Secretary of the

11 Treasury, equal to the actuarial present value of any

12 retired or retainer pay they will draw upon retire13 ment, including full credit for service in the NOAA

14 Corps. Any payment under this subparagraph shall,

15 for purposes of paragraph (2) of section 2206(g), be

16 considered to be an expenditure described in such

17 paragraph.

18 (B) For commissioned officers who transfer

19 under paragraph (4)(B) to the United States Coast

20 Guard, full credit for service in the NOAA Corps

21 shall be given for purposes of any annuity or other

22 similar benefit under the retirement system for

23 members of the United States Coast Guard, entitle24 ment to which is based on the separation of such of25 ficer.
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1 (C)(i) For a commissioned officer who becomes

2 employed in a civil service position pursuant to para3 graph (4)(C) and thereupon becomes subject to the

4 Federal Employees’ Retirement System, the Na5 tional Scientific, Oceanic, and Atmospheric Adminis6 tration shall pay, on such officer’s behalf—

7 (I) into the Civil Service Retirement and

8 Disability Fund, the amounts required under

9 clause (ii); and

10 (II) into the Government Securities Invest11 ment Fund, the amount required under clause

12 (iii).

13 (ii)(I) The amount required under this

14 subclause is the amount of any deposit required

15 under section 8422(e)(1) of such title 5 with respect

16 to any prior service performed by the individual as

17 a commissioned officer of the National Oceanic and

18 Atmospheric Administration.

19 (II) To determine the amount required under

20 this subclause, first determine, for each year of serv21 ice with respect to which the deposit under subclause

22 (I) relates, the product of the normal-cost percent23 age for such year (as determined under the last sen24 tence of this subclause) multiplied by basic pay re25 ceived by the individual for any such service per-
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1 formed in such year. Second, take the sum of the

2 amounts determined for the respective years under

3 the first sentence. Finally, subtract from such sum

4 the amount of the deposit under subclause (I). For

5 purposes of the first sentence, the normal-cost per6 centage for any year shall be as determined for such

7 year under the provisions of section 8423(a)(1) of

8 title 5, United States Code, except that, in the case

9 of any year before the first year for which any nor10 mal-cost percentage was determined under such pro11 visions, the normal-cost percentage for such first

12 year shall be used.

13 (iii) The amount required under this clause is

14 the amount by which the separation pay to which

15 the officer would have been entitled under the sec16 ond sentence of paragraph (2)(A) (assuming the

17 conditions for receiving such separation pay have

18 been met) exceeds the amount of the deposit under

19 clause (ii)(I), if at all.

20 (iv)(I) Any contribution made under this sub21 paragraph to the Thrift Savings Plan shall not be

22 subject to any otherwise applicable limitation on con23 tributions contained in the Internal Revenue Code of

24 1986, and shall not be taken into account in apply25 ing any such limitation to other contributions or
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1 benefits under the Thrift Savings Plan, with respect

2 to the year in which the contribution is made.

3 (II) Such plan shall not be treated as failing to

4 meet any nondiscrimination requirement by reason

5 of the making of such contribution.

6 (6) REPEALS.—(A) The following provisions of

7 law are repealed:

8 (i) The Coast and Geodetic Survey Com9 missioned Officers’ Act of 1948 (33 U.S.C.

10 853a–853o, 853p–853u).

11 (ii) The Act of February 16, 1929 (Chap12 ter 221, section 5; 45 Stat. 1187; 33 U.S.C.

13 852a).

14 (iii) The Act of January 19, 1942 (Chap15 ter 6; 56 Stat. 6).

16 (iv) Section 9 of Public Law 87–649 (76

17 Stat. 495).

18 (v) The Act of May 22, 1917 (Chapter 20,

19 section 16; 40 Stat. 87; 33 U.S.C. 854 et seq.).

20 (vi) The Act of December 3, 1942 (Chap21 ter 670; 56 Stat. 1038.

22 (vii) Sections 1 through 5 of Public Law

23 91–621 (84 Stat. 1863; 33 U.S.C. 857–1 et

24 seq.).
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1 (viii) The Act of August 10, 1956 (Chapter

2 1041, section 3; 70A Stat. 619; 33 U.S.C.

3 857a).

4 (ix) The Act of May 18, 1920 (Chapter

5 190, section 11; 41 Stat. 603; 33 U.S.C. 864).

6 (x) The Act of July 22, 1947 (Chapter

7 286; 61 Stat. 400; 33 U.S.C. 873, 874).

8 (xi) The Act of August 3, 1956 (Chapter

9 932; 70 Stat. 988; 33 U.S.C. 875, 876).

10 (xii) All other Acts inconsistent with this

11 subsection.

12 No repeal under this subparagraph shall affect any

13 annuity or other similar benefit payable, under any

14 provision of law so repealed, based on the separation

15 of any individual from the NOAA Corps or its suc16 cessor on or before September 30, 1998. Any au17 thority exercised by the Secretary of Commerce or

18 his designee with respect to any such benefits shall

19 be exercised by the Administrator of Science,

20 Oceans, and the Atmosphere, and any authorization

21 of appropriations relating to those benefits, which is

22 in effect as of September 30, 1998, shall be consid23 ered to have remained in effect.

24 (B) The effective date of the repeals under sub25 paragraph (A) shall be October 1, 1998.
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1 (C)(i) All laws relating to the retirement of

2 commissioned officers of the Navy shall apply to

3 commissioned officers of the former Commissioned

4 Officers Corps of the National Oceanic and Atmos5 pheric Administration and its predecessors.

6 (ii) Active service of officers of the former Com7 missioned Officers Corps of the National Oceanic

8 and Atmospheric Administration and its prede9 cessors who have retired from the Commissioned Of10 ficers Corps shall be deemed to be active military

11 service in the United States Navy for purposes of all

12 rights, privileges, immunities, and benefits provided

13 to retired commissioned officers of the Navy by the

14 laws and regulations of the United States and any

15 agency thereof. In the Administration of those laws

16 and regulations with respect to retired officers of the

17 former Commissioned Officers Corps of the National

18 Oceanic and Atmospheric Administration and its

19 predecessors, the authority of the Secretary of the

20 Navy shall be exercised by the Administrator of

21 Science, Oceans, and the Atmosphere.

22 (iii) For purposes of this subparagraph, the

23 term ‘‘its predecessors’’ means the former Commis24 sioned Officers Corps of the Environmental Science

25 Services Administration and the former Commis-
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1 sioned Officers Corps of the Coast and Geodetic

2 Survey.

3 (7) CREDITABILITY OF NOAA SERVICE FOR

4 PURPOSES RELATING TO REDUCTIONS IN FORCE.—

5 A commissioned officer who is separated from the

6 active list of the National Oceanic and Atmospheric

7 Administration or its successor because of paragraph

8 (1) shall, for purposes of any subsequent reduction

9 in force, receive credit for any period of service per10 formed as such an officer before separation from

11 such list to the same extent and in the same manner

12 as if it had been a period of active service in the

13 Armed Forces.

14 (8) ABOLITION.—The Office of the National

15 Oceanic and Atmospheric Administration Corps of

16 Operations or its successor and the Commissioned

17 Personnel Center are abolished effective September

18 30, 1998.

19 (h) NOAA FLEET.—

20 (1) SERVICE CONTRACTS.—Notwithstanding

21 any other provision of law and subject to the avail22 ability of appropriations, the Administrator of

23 Science, Oceans, and the Atmosphere shall enter

24 into contracts, including multiyear contracts, subject

25 to paragraph (3), for the use of vessels to conduct
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1 oceanographic research and fisheries research, mon2 itoring, enforcement, and management, and to ac3 quire other data necessary to carry out the missions

4 of the National Scientific, Oceanic, and Atmospheric

5 Administration. The Administrator of Science,

6 Oceans, and the Atmosphere shall enter into these

7 contracts unless—

8 (A) the cost of the contract is more than

9 the cost (including the cost of vessel operation,

10 maintenance, and all personnel) to the National

11 Scientific, Oceanic, and Atmospheric Adminis12 tration of obtaining those services on vessels of

13 the National Scientific, Oceanic, and Atmos14 pheric Administration;

15 (B) the contract is for more than 7 years;

16 or

17 (C) the data is acquired through a vessel

18 agreement pursuant to paragraph (4).

19 (2) VESSELS.—The Administrator of Science,

20 Oceans, and the Atmosphere may not enter into any

21 contract for the construction, lease-purchase, up22 grade, or service life extension of any vessel.

23 (3) MULTIYEAR CONTRACTS.—

24 (A) IN GENERAL.—Subject to subpara25 graphs (B) and (C), and notwithstanding sec-
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1 tion 1341 of title 31, United States Code, and

2 section 11 of title 41, United States Code, the

3 Administrator of Science, Oceans, and the At4 mosphere may acquire data under multiyear

5 contracts.

6 (B) REQUIRED FINDINGS.—The Adminis7 trator of Science, Oceans, and the Atmosphere

8 may not enter into a contract pursuant to this

9 paragraph unless such Administrator finds with

10 respect to that contract that there is a reason11 able expectation that throughout the con12 templated contract period the Administrator

13 will request from Congress funding for the con14 tract at the level required to avoid contract ter15 mination.

16 (C) REQUIRED PROVISIONS.—The Admin17 istrator of Science, Oceans, and the Atmosphere

18 may not enter into a contract pursuant to this

19 paragraph unless the contract includes—

20 (i) a provision under which the obliga21 tion of the United States to make pay22 ments under the contract for any fiscal

23 year is subject to the availability of appro24 priations provided in advance for those

25 payments;
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1 (ii) a provision that specifies the term

2 of effectiveness of the contract; and

3 (iii) appropriate provisions under

4 which, in case of any termination of the

5 contract before the end of the term speci6 fied pursuant to clause (ii), the United

7 States shall only be liable for the lesser

8 of—

9 (I) an amount specified in the

10 contract for such a termination; or

11 (II) amounts that were appro12 priated before the date of the termi13 nation for the performance of the con14 tract or for procurement of the type

15 of acquisition covered by the contract

16 and are unobligated on the date of the

17 termination.

18 (4) VESSEL AGREEMENTS.—The Administrator

19 of Science, Oceans, and the Atmosphere shall use ex20 cess capacity of University National Oceanographic

21 Laboratory System vessels where appropriate and

22 may enter into memoranda of agreement with the

23 operators of these vessels to carry out this require24 ment.
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1 (5) TRANSFER OF EXCESS VESSELS.—The Ad2 ministrator of Science, Oceans, and the Atmosphere

3 shall transfer any vessels over 1,500 gross tons that

4 are excess to the needs of the National Scientific,

5 Oceanic, and Atmospheric Administration to the Na6 tional Defense Reserve Fleet. Notwithstanding any

7 other provision of law, these vessels may be scrapped

8 in accordance with section 510(i) of the Merchant

9 Marine Act, 1936 (46 App. U.S.C. 1160(i)).

10 (i) NATIONAL MARINE FISHERIES SERVICE.—(1)

11 There are transferred to the National Scientific, Oceanic,

12 and Atmospheric Administration all functions that on the

13 day before the effective date of this section were author14 ized by law to be performed by the National Marine Fish15 eries Service.

16 (2) Notwithstanding any other provision of law, the

17 National Marine Fisheries Service may not affect on-land

18 activities under the Endangered Species Act of 1973 for

19 salmon recovery in the State of Idaho (16 U.S.C. 1531

20 et seq.).

21 (j) NATIONAL OCEAN SERVICE.—Except as otherwise

22 provided in this title, there are transferred to the National

23 Scientific, Oceanic, and Atmospheric Administration all

24 functions and assets of the National Oceanic and Atmos25 pheric Administration that on the date immediately before
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1 the effective date of this section were authorized to be per2 formed by the National Ocean Service (including the

3 Coastal Ocean Program).

4 (k) TRANSFER OF COASTAL NONPOINT POLLUTION

5 CONTROL FUNCTIONS.—There are transferred to the Ad6 ministrator of the Environmental Protection Agency the

7 functions under section 6217 of the Omnibus Budget Rec8 onciliation Act of 1990 (16 U.S.C. 1455b) that on the day

9 before the effective date of this section were vested in the

10 Secretary of Commerce.

11 SEC. 2206. NATIONAL SCIENTIFIC, OCEANIC, AND ATMOS12 PHERIC ADMINISTRATION.

13 (a) ESTABLISHMENT.—There is established as an

14 independent agency in the Executive Branch the National

15 Scientific, Oceanic, and Atmospheric Administration (in

16 this section referred to as the ‘‘NSOAA’’). The NSOAA,

17 and all functions and offices transferred to it under this

18 title, shall be administered under the supervision and di19 rection of an Administrator of Science, Oceans, and the

20 Atmosphere. The Administrator of Science, Oceans, and

21 the Atmosphere shall be appointed by the President, by

22 and with the advice and consent of the Senate, and shall

23 receive basic pay at the rate payable for level II of the

24 Executive Schedule under section 5313 of title 5, United

25 States Code. The Administrator of Science, Oceans, and
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1 the Atmosphere shall additionally perform the functions

2 previously performed by the Administrator of the National

3 Oceanic and Atmospheric Administration.

4 (b) PRINCIPAL OFFICER.—There shall be in the

5 NSOAA, on the transfer of functions and offices under

6 this title, a Director of the National Bureau of Standards,

7 who shall be appointed by the President, by and with the

8 advice and consent of the Senate, and who shall receive

9 basic pay at the rate payable for level IV of the Executive

10 Schedule under section 5315 of title 5, United States

11 Code.

12 (c) ADDITIONAL OFFICERS.—There shall be in the

13 NSOAA—

14 (1) a Chief Financial Officer of the NSOAA, to

15 be appointed by the President, by and with the ad16 vice and consent of the Senate;

17 (2) a Chief of External Affairs, to be appointed

18 by the President, by and with the advice and consent

19 of the Senate;

20 (3) a General Counsel, to be appointed by the

21 President, by and with the advice and consent of the

22 Senate; and

23 (4) an Inspector General, to be appointed in ac24 cordance with the Inspector General Act of 1978.
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1 Each Officer appointed under this subsection shall receive

2 basic pay at the rate payable for level IV of the Executive

3 Schedule under section 5315 of title 5, United States

4 Code.

5 (d) TRANSFER OF FUNCTIONS AND OFFICES.—Ex6 cept as otherwise provided in this title, there are trans7 ferred to the NSOAA—

8 (1) the functions and offices of the National

9 Oceanic and Atmospheric Administration, as pro10 vided in section 2205;

11 (2) the National Bureau of Standards, along

12 with its functions and offices, as provided in section

13 2202; and

14 (3) the Office of Space Commerce, along with

15 its functions and offices.

16 (e) ELIMINATION OF POSITIONS.—The Adminis17 trator of Science, Oceans, and the Atmosphere may elimi18 nate positions that are no longer necessary because of the

19 termination of functions under this section, section 2202,

20 and section 2205.

21 (f) AGENCY TERMINATIONS.—

22 (1) TERMINATIONS.—On the date specified in

23 section 2208(a), the following shall terminate:
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1 (A) The Office of the Deputy Adminis2 trator and Assistant Secretary of the National

3 Oceanic and Atmospheric Administration.

4 (B) The Office of the Deputy Under Sec5 retary of the National Oceanic and Atmospheric

6 Administration.

7 (C) The Office of the Chief Scientist of the

8 National Oceanic and Atmospheric Administra9 tion.

10 (D) The position of Deputy Assistant Sec11 retary for Oceans and Atmosphere.

12 (E) The position of Deputy Assistant Sec13 retary for International Affairs.

14 (F) Any office of the National Oceanic and

15 Atmospheric Administration or the National

16 Bureau of Standards whose primary purpose is

17 to perform high performance computing com18 munications, legislative, personnel, public rela19 tions, budget, constituent, intergovernmental,

20 international, policy and strategic planning,

21 sustainable development, administrative, finan22 cial, educational, legal and coordination func23 tions. These functions shall, as necessary, be

24 performed only by officers described in sub25 section (c).
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1 (G) The position of Associate Director of

2 the National Institute of Standards and Tech3 nology.

4 (2) TERMINATION OF EXECUTIVE SCHEDULE

5 POSITIONS.—Each position which was expressly au6 thorized by law, or the incumbent of which was au7 thorized to receive compensation at the rate pre8 scribed for levels I through V of the Executive

9 Schedule under sections 5312 through 5315 of title

10 5, United States Code, in an office terminated pur11 suant to this section, section 2202, and section 2205

12 shall also terminate.

13 (g) FUNDING REDUCTIONS RESULTING FROM REOR14 GANIZATION.—

15 (1) FUNDING REDUCTIONS.—Notwithstanding

16 the transfer of functions under this subtitle, the

17 total amount obligated or expended by the United

18 States in performing all functions vested in the Na19 tional Scientific, Oceanic, and Atmospheric Adminis20 tration pursuant to this subtitle shall not exceed—

21 (A) for the first fiscal year that begins

22 after the abolishment date specified in section

23 2101(c), 75 percent of the total amount appro24 priated for fiscal year 1995 for the performance

25 of all functions vested in the National Oceanic
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1 and Atmospheric Administration, the National

2 Institute of Standards and Technology, and the

3 Office of Space Commerce, except for those

4 functions transferred under section 2205 to

5 agencies or departments other than the Na6 tional Scientific, Oceanic, and Atmospheric Ad7 ministration; and

8 (B) for the second fiscal year that begins

9 after the abolishment date specified in section

10 2101(c) and for each fiscal year thereafter, 65

11 percent of the total amount appropriated for

12 fiscal year 1995 for the performance of all func13 tions vested in the National Oceanic and At14 mospheric Administration, the National Insti15 tute of Standards and Technology, and the Of16 fice of Space Commerce, except for those func17 tions transferred under section 22045 to agen18 cies or departments other than the National

19 Scientific, Oceanic, and Atmospheric Adminis20 tration.

21 (2) EXCEPTION.—Paragraph (1) shall not

22 apply to obligations or expenditures incurred as a di23 rect consequence of the termination, transfer, or

24 other disposition of functions described in paragraph

25 (1) pursuant to this subtitle.
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1 (3) RULE OF CONSTRUCTION.—This subsection

2 shall take precedence over any other provision of law

3 unless such provision explicitly refers to this section

4 and makes an exception to it.

5 (4) RESPONSIBILITY OF NATIONAL SCIENTIFIC,

6 OCEANIC, AND ATMOSPHERIC ADMINISTRATION.—

7 The National Scientific, Oceanic, and Atmospheric

8 Administration, in consultation with the Director of

9 the Office of Management and Budget, shall make

10 such modifications in programs as are necessary to

11 carry out the reductions in appropriations set forth

12 in subparagraphs (A) and (B) of paragraph (1).

13 (5) RESPONSIBILITIES OF THE DIRECTOR OF

14 THE OFFICE OF MANAGEMENT AND BUDGET.—The

15 Director of the Office of Management and Budget

16 shall include in each report under sections 2105(a)

17 and (b) a description of actions taken to comply with

18 the requirements of this subsection.

19 SEC. 2207. MISCELLANEOUS TERMINATIONS; MORATORIUM

20 ON PROGRAM ACTIVITIES.

21 (a) TERMINATIONS.—The following agencies and pro22 grams of the Department of Commerce are terminated:

23 (1) The Minority Business Development Admin24 istration.
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1 (2) The United States Travel and Tourism Ad2 ministration.

3 (3) The programs and activities of the National

4 Telecommunications and Information Administration

5 referred to in section 2204(a).

6 (4) The Advanced Technology Program under

7 section 28 of the National Institute of Standards

8 and Technology Act (15 U.S.C. 278n).

9 (5) The Manufacturing Extension Programs

10 under sections 25 and 26 of the National Institute

11 of Standards and Technology Act (15 U.S.C. 278k

12 and 278l).

13 (6) The National Institute of Standards and

14 Technology METRIC Program.

15 (b) MORATORIUM ON PROGRAM ACTIVITIES.—The

16 authority to make grants, enter into contracts, provide as17 sistance, incur obligations, or provide commitments (in18 cluding any enlargement of existing obligations or commit19 ments, except if required by law) with respect to the agen20 cies and programs described in subsection (a) is termi21 nated effective on the date of the enactment of this title.

22 SEC. 2208. EFFECTIVE DATE.

23 (a) IN GENERAL.—Except as provided in subsection

24 (b), this subtitle shall take effect on the abolishment date

25 specified in section 2101(c).
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1 (b) PROVISIONS EFFECTIVE ON DATE OF ENACT2 MENT.—The following provisions of this subtitle shall take

3 effect on the date of the enactment of this Act:

4 (1) Section 2201.

5 (2) Section 2205(g), except as otherwise pro6 vided in that section.

7 (3) Section 2207(b).

8 (4) This section.

9 Subtitle C—Office of United States

10 Trade Representative

11 CHAPTER 1—GENERAL PROVISIONS

12 SEC. 2301. DEFINITIONS.

13 For purposes of this subtitle—

14 (1) the term ‘‘Office’’ means the Office of the

15 United States Trade Representative;

16 (2) the term ‘‘Federal agency’’ has the meaning

17 given to the term ‘‘agency’’ by section 551(1) of title

18 5, United States Code; and

19 (3) the term ‘‘USTR’’ means the United States

20 Trade Representative as provided for under section

21 2311.
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1 CHAPTER 2—OFFICE OF UNITED STATES

2 TRADE REPRESENTATIVE

3 Subchapter A—Establishment

4 SEC. 2311. ESTABLISHMENT OF THE OFFICE.

5 (a) IN GENERAL.—The Office of the United States

6 Trade Representative is established as an independent es7 tablishment in the executive branch of Government as de8 fined under section 104 of title 5, United States Code.

9 The United States Trade Representative shall be the head

10 of the Office and shall be appointed by the President, by

11 and with the advice and consent of the Senate.

12 (b) AMBASSADOR STATUS.—The USTR shall have

13 the rank and status of Ambassador and shall represent

14 the United States in all trade negotiations conducted by

15 the Office.

16 (c) CONTINUED SERVICE OF CURRENT USTR.—The

17 individual serving as United States Trade Representative

18 on the date immediately preceding the effective date of

19 this subtitle may continue to serve as USTR under sub20 section (a).

21 (d) SUCCESSOR TO THE DEPARTMENT OF COM22 MERCE.—The Office shall be the successor to the Depart23 ment of Commerce for purposes of protocol.
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1 SEC. 2312. FUNCTIONS OF THE USTR.

2 (a) IN GENERAL.—In addition to the functions trans3 ferred to the USTR by this subtitle, such other functions

4 as the President may assign or delegate to the USTR, and

5 such other functions as the USTR may, after the effective

6 date of this subtitle, be required to carry out by law, the

7 USTR shall—

8 (1) serve as the principal advisor to the Presi9 dent on international trade policy and advise the

10 President on the impact of other policies of the

11 United States Government on international trade;

12 (2) exercise primary responsibility, with the ad13 vice of the interagency organization established

14 under section 242 of the Trade Expansion Act of

15 1962, for developing and implementing international

16 trade policy, including commodity matters and, to

17 the extent related to international trade policy, di18 rect investment matters and, in exercising such re19 sponsibility, advance and implement, as the primary

20 mandate of the Office, the goals of the United

21 States to—

22 (A) maintain United States leadership in

23 international trade liberalization and expansion

24 efforts;

25 (B) reinvigorate the ability of the United

26 States economy to compete in international
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1 markets and to respond flexibly to changes in

2 international competition; and

3 (C) expand United States participation in

4 international trade through aggressive pro5 motion and marketing of goods and services

6 that are products of the United States;

7 (3) exercise lead responsibility for the conduct

8 of international trade negotiations, including nego9 tiations relating to commodity matters and, to the

10 extent that such negotiations are related to inter11 national trade, direct investment negotiations;

12 (4) exercise lead responsibility for the establish13 ment of a national export strategy, including policies

14 designed to implement such strategy;

15 (5) with the advice of the interagency organiza16 tion established under section 242 of the Trade Ex17 pansion Act of 1962, issue policy guidance to other

18 Federal agencies on international trade, commodity,

19 and direct investment functions to the extent nec20 essary to assure the coordination of international

21 trade policy;

22 (6) seek and promote new opportunities for

23 United States products and services to compete in

24 the world marketplace;
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1 (7) assist small businesses in developing export

2 markets;

3 (8) enforce the laws of the United States relat4 ing to trade;

5 (9) analyze economic trends and developments;

6 (10) report directly to the Congress—

7 (A) on the administration of, and matters

8 pertaining to, the trade agreements program

9 under the Omnibus Trade and Competitiveness

10 Act of 1988, the Trade Act of 1974, the Trade

11 Expansion Act of 1962, section 350 of the Tar12 iff Act of 1930, and any other provision of law

13 enacted after this Act; and

14 (B) with respect to other important issues

15 pertaining to international trade;

16 (11) keep each official adviser to the United

17 States delegations to international conferences,

18 meetings, and negotiation sessions relating to trade

19 agreements who is appointed from the Committee on

20 Finance of the Senate or the Committee on Ways

21 and Means of the House of Representatives under

22 section 161 of the Trade Act of 1974 currently in23 formed on United States negotiating objectives with

24 respect to trade agreements, the status of negotia25 tions in progress with respect to such agreements,
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1 and the nature of any changes in domestic law or

2 the administration thereof which the USTR may

3 recommend to the Congress to carry out any trade

4 agreement;

5 (12) consult and cooperate with State and local

6 governments and other interested parties on inter7 national trade matters of interest to such govern8 ments and parties, and to the extent related to inter9 national trade matters, on investment matters, and,

10 when appropriate, hold informal public hearings;

11 (13) serve as the principal advisor to the Presi12 dent on Government policies designed to contribute

13 to enhancing the ability of United States industry

14 and services to compete in international markets;

15 (14) develop recommendations for national

16 strategies and specific policies intended to enhance

17 the productivity and international competitiveness of

18 United States industries;

19 (15) serve as the principal advisor to the Presi20 dent in identifying and assessing the consequences

21 of any Government policies that adversely affect, or

22 have the potential to adversely affect, the inter23 national competitiveness of United States industries

24 and services;
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1 (16) promote cooperation between business,

2 labor, and Government to improve industrial per3 formance and the ability of United States industries

4 to compete in international markets and to facilitate

5 consultation and communication between the Gov6 ernment and the private sector about domestic in7 dustrial performance and prospects and the perform8 ance and prospects of foreign competitors; and

9 (17) monitor and enforce foreign government

10 compliance with international trade agreements to

11 protect United States interests.

12 (b) INTERAGENCY ORGANIZATION.—The USTR shall

13 be the chairperson of the interagency organization estab14 lished under section 242 of the Trade Expansion Act of

15 1962.

16 (c) NATIONAL SECURITY COUNCIL.—The USTR

17 shall be a member of the National Security Council.

18 (d) ADVISORY COUNCIL.—The USTR shall be Dep19 uty Chairman of the National Advisory Council on Inter20 national Monetary and Financial Policies established

21 under Executive Order 11269, issued February 14, 1966.

22 (e) AGRICULTURE.—(1) The USTR shall consult

23 with the Secretary of Agriculture or the designee of the

24 Secretary of Agriculture on all matters that potentially in25 volve international trade in agricultural products.
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1 (2) If an international meeting for negotiation or con2 sultation includes discussion of international trade in agri3 cultural products, the USTR or the designee of the USTR

4 shall be Chairman of the United States delegation to such

5 meeting and the Secretary of Agriculture or the designee

6 of such Secretary shall be Vice Chairman. The provisions

7 of this paragraph shall not limit the authority of the

8 USTR under subsection (h) to assign to the Secretary of

9 Agriculture responsibility for the conduct of, or participa10 tion in, any trade negotiation or meeting.

11 (f) TRADE PROMOTION.—The USTR shall be the

12 chairperson of the Trade Promotion Coordinating Com13 mittee.

14 (g) NATIONAL ECONOMIC COUNCIL.—The USTR

15 shall be a member of the National Economic Council es16 tablished under Executive Order No. 12835, issued Janu17 ary 25, 1993.

18 (h) INTERNATIONAL TRADE NEGOTIATIONS.—Ex19 cept where expressly prohibited by law, the USTR, at the

20 request or with the concurrence of the head of any other

21 Federal agency, may assign the responsibility for conduct22 ing or participating in any specific international trade ne23 gotiation or meeting to the head of such agency whenever

24 the USTR determines that the subject matter of such
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1 international trade negotiation is related to the functions

2 carried out by such agency.

3 Subchapter B—Officers

4 SEC. 2321. DEPUTY ADMINISTRATOR OF THE OFFICE.

5 (a) ESTABLISHMENT.—There shall be in the Office

6 the Deputy Administrator of the Office of the United

7 States Trade Representative, who shall be appointed by

8 the President, by and with the advice and consent of the

9 Senate.

10 (b) ABSENCE, DISABILITY, OR VACANCY OF

11 USTR.—The Deputy Administrator of the Office of the

12 United States Trade Representative shall act for and exer13 cise the functions of the USTR during the absence or dis14 ability of the USTR or in the event the office of the USTR

15 becomes vacant. The Deputy Administrator shall act for

16 and exercise the functions of the USTR until the absence

17 or disability of the USTR no longer exists or a successor

18 to the USTR has been appointed by the President and

19 confirmed by the Senate.

20 (c) FUNCTIONS OF DEPUTY ADMINISTRATOR.—The

21 Deputy Administrator of the Office of the United States

22 Trade Representative shall exercise all functions, under

23 the direction of the USTR, transferred to or established

24 in the Office, except those functions exercised by the Dep25 uty United States Trade Representatives, the Director
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1 General for Export Promotion, the Inspector General, and

2 the General Counsel of the Office, as provided by this sub3 title.

4 SEC. 2322. DEPUTY UNITED STATES TRADE REPRESENTA5 TIVES.

6 (a) ESTABLISHMENT.—There shall be in the Office

7 2 Deputy United States Trade Representatives, who shall

8 be appointed by the President, by and with the advice and

9 consent of the Senate. The Deputy United States Trade

10 Representatives shall exercise all functions under the di11 rection of the USTR, and shall include—

12 (1) the Deputy United States Trade Represent13 ative for Negotiations; and

14 (2) the Deputy United States Trade Represent15 ative to the World Trade Organization.

16 (b) FUNCTIONS OF DEPUTY UNITED STATES TRADE

17 REPRESENTATIVES.—(1) The Deputy United States

18 Trade Representative for Negotiations shall exercise all

19 functions transferred under section 2331 and shall have

20 the rank and status of Ambassador.

21 (2) The Deputy United States Trade Representative

22 to the World Trade Organization shall exercise all func23 tions relating to representation to the World Trade Orga24 nization and shall have the rank and status of Ambas25 sador.
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1 SEC. 2323. ASSISTANT ADMINISTRATORS.

2 (a) ESTABLISHMENT.—There shall be in the Office

3 3 Assistant Administrators, who shall be appointed by the

4 President, by and with the advice and consent of the Sen5 ate. The Assistant Administrators shall exercise all func6 tions under the direction of the Deputy Administrator of

7 the Office of the United States Trade Representative and

8 include—

9 (1) the Assistant Administrator for Export Ad10 ministration;

11 (2) the Assistant Administrator for Import Ad12 ministration; and

13 (3) the Assistant Administrator for Trade and

14 Policy Analysis.

15 (b) FUNCTIONS OF ASSISTANT ADMINISTRATORS.—

16 (1) The Assistant Administrator for Export Administra17 tion shall exercise all functions transferred under section

18 2332(1)(C).

19 (2) The Assistant Administrator for Import Adminis20 tration shall exercise all functions transferred under sec21 tion 2332(1)(D).

22 (3) The Assistant Administrator for Trade and Policy

23 Analysis shall exercise all functions transferred under sec24 tion 2332(1)(B) and all functions transferred under sec25 tion 2332(2).
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1 SEC. 2324. DIRECTOR GENERAL FOR EXPORT PROMOTION.

2 (a) ESTABLISHMENT.—There shall be a Director

3 General for Export Promotion, who shall be appointed by

4 the President, by and with the advice and consent of the

5 Senate.

6 (b) FUNCTIONS.—The Director General for Export

7 Promotion shall exercise, under the direction of the

8 USTR, all functions transferred under sections

9 2332(1)(A) (relating to functions of the United States and

10 Foreign Commercial Service) and 2333 and shall have the

11 rank and status of Ambassador.

12 SEC. 2325. GENERAL COUNSEL.

13 There shall be in the Office a General Counsel, who

14 shall be appointed by the President, by and with the advice

15 and consent of the Senate. The General Counsel shall pro16 vide legal assistance to the USTR concerning the activi17 ties, programs, and policies of the Office.

18 SEC. 2326. INSPECTOR GENERAL.

19 There shall be in the Office an Inspector General who

20 shall be appointed in accordance with the Inspector Gen21 eral Act of 1978, as amended by section 2371(b) of this

22 Act.

23 SEC. 2327. CHIEF FINANCIAL OFFICER.

24 There shall be in the Office a Chief Financial Officer

25 who shall be appointed in accordance with section 901 of

26 title 31, United States Code, as amended by section
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1 2371(e) of this Act. The Chief Financial Officer shall per2 form all functions prescribed by the Deputy Administrator

3 of the Office of the United States Trade Representative,

4 under the direction of the Deputy Administrator.

5 Subchapter C—Transfers to the Office

6 SEC. 2331. OFFICE OF THE UNITED STATES TRADE REP7 RESENTATIVE.

8 There are transferred to the USTR all functions of

9 the United States Trade Representative and the Office of

10 the United States Trade Representative in the Executive

11 Office of the President and all functions of any officer or

12 employee of such Office.

13 SEC. 2332. TRANSFERS FROM THE DEPARTMENT OF COM14 MERCE.

15 There are transferred to the USTR the following

16 functions:

17 (1) All functions of, and all functions performed

18 under the direction of, the following officers and em19 ployees of the Department of Commerce:

20 (A) The Under Secretary of Commerce for

21 International Trade, and the Director General

22 of the United States and Foreign Commercial

23 Service, relating to all functions exercised by

24 the Service.
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1 (B) The Assistant Secretary of Commerce

2 for International Economic Policy and the As3 sistant Secretary of Commerce for Trade Devel4 opment.

5 (C) The Under Secretary of Commerce for

6 Export Administration.

7 (D) The Assistant Secretary of Commerce

8 for Import Administration.

9 (2) All functions of the Secretary of Commerce

10 relating to the National Trade Data Bank.

11 (3) All functions of the Secretary of Commerce

12 under the Tariff Act of 1930, the Uruguay Round

13 Agreements Act, the Trade Act of 1974, and other

14 trade-related Acts for which responsibility is not oth15 erwise assigned under this subtitle.

16 SEC. 2333. TRADE AND DEVELOPMENT AGENCY.

17 There are transferred to the Director General for Ex18 port Promotion all functions of the Director of the Trade

19 and Development Agency. There are transferred to the Of20 fice of the Director General for Export Promotion all func21 tions of the Trade and Development Agency.

22 SEC. 2334. EXPORT-IMPORT BANK.

23 (a) IN GENERAL.—(1) There are transferred to the

24 USTR all functions of the Secretary of Commerce relating

25 to the Export-Import Bank of the United States.
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1 (2) Section 3(c)(1) of the Export-Import Bank Act

2 of 1945 (12 U.S.C. 635a(c)(1)) is amended to read as fol3 lows:

4 ‘‘(c)(1) There shall be a Board of Directors of the

5 Bank consisting of the United States Trade Representa6 tive (who shall serve as Chairman), the President of the

7 Export-Import Bank of the United States (who shall serve

8 as Vice Chairman), the first Vice President, and 2 addi9 tional persons appointed by the President of the United

10 States, by and with the advice and consent of the Sen11 ate.’’.

12 (b) EX OFFICIO MEMBER OF EXPORT-IMPORT BANK

13 BOARD OF DIRECTORS.—The Director General for Export

14 Promotion shall serve as an ex officio nonvoting member

15 of the Board of Directors of the Export-Import Bank.

16 (c) AMENDMENTS TO RELATED BANKING AND

17 TRADE ACTS.—Section 2301(h) of the Omnibus Trade

18 and Competitiveness Act of 1988 (15 U.S.C. 4721(h)) is

19 amended to read as follows:

20 ‘‘(h) ASSISTANCE TO EXPORT-IMPORT BANK.—The

21 Commercial Service shall provide such services as the Di22 rector General for Export Promotion of the Office of the

23 United States Trade Representative determines necessary

24 to assist the Export-Import Bank of the United States to
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1 carry out the lending, loan guarantee, insurance, and

2 other activities of the Bank.’’.

3 SEC. 2335. OVERSEAS PRIVATE INVESTMENT CORPORA4 TION.

5 (a) BOARD OF DIRECTORS.—The second and third

6 sentences of section 233(b) of the Foreign Assistance Act

7 of 1961 (22 U.S.C. 2193(b)) are amended to read as fol8 lows: ‘‘The United States Trade Representative shall be

9 the Chairman of the Board. The Administrator of the

10 Agency for International Development (who shall serve as

11 Vice Chairman) shall serve on the Board.’’.

12 (b) EX OFFICIO MEMBER OF OVERSEAS PRIVATE IN13 VESTMENT CORPORATION BOARD OF DIRECTORS.—The

14 Director General for Export Promotion shall serve as an

15 ex officio nonvoting member of the Board of Directors of

16 the Overseas Private Investment Corporation.

17 SEC. 2336. CONSOLIDATION OF EXPORT PROMOTION AND

18 FINANCING ACTIVITIES.

19 (a) SUBMISSION OF PLAN.—Within 180 days after

20 the date of the enactment of this Act, the President shall

21 transmit to the Congress a comprehensive plan to consoli22 date Federal nonagricultural export promotion activities

23 and export financing activities and to transfer those func24 tions to the Office. The plan shall provide for—
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1 (1) the elimination of the overlap and duplica2 tion among all Federal nonagricultural export pro3 motion activities and export financing activities;

4 (2) a unified budget for Federal nonagricultural

5 export promotion activities which eliminates funding

6 for the areas of overlap and duplication identified

7 under paragraph (1); and

8 (3) a long-term agenda for developing better co9 operation between local, State and Federal programs

10 and activities designed to stimulate or assist United

11 States businesses in exporting nonagricultural goods

12 or services that are products of the United States,

13 including sharing of facilities, costs, and export mar14 ket research data.

15 (b) PLAN ELEMENTS.—The plan under subsection

16 (a) shall—

17 (1) place all Federal nonagricultural export pro18 motion activities and export financing activities with19 in the Office;

20 (2) provide clear authority for the USTR to use

21 the expertise and assistance of other United States

22 Government agencies;

23 (3) achieve an overall 25 percent reduction in

24 the amount of funding for all Federal non-
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1 agricultural export promotion activities within 2

2 years after the enactment of this Act;

3 (4) include any functions of the Department of

4 Commerce not transferred by this subtitle, or of

5 other Federal departments the transfer of which to

6 the Office would be necessary to the competitiveness

7 of the United States in international trade; and

8 (5) assess the feasibility and potential savings

9 resulting from—

10 (A) the consolidation of the Export-Import

11 Bank of the United States and the Overseas

12 Private Investment Corporation;

13 (B) the consolidation of the Boards of Di14 rectors of the Export-Import Bank and the

15 Overseas Private Investment Corporation; and

16 (C) the consolidation of the Trade and De17 velopment Agency with the consolidations under

18 subparagraphs (A) and (B).

19 (c) DEFINITION.—As used in this section, the term

20 ‘‘Federal nonagricultural export promotion activities’’

21 means all programs or activities of any department or

22 agency of the Federal Government (including, but not lim23 ited to, departments and agencies with representatives on

24 the Trade Promotion Coordinating Committee established

25 under section 2312 of the Export Enhancement Act of
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1 1988 (15 U.S.C. 4727)) that are designed to stimulate

2 or assist United States businesses in exporting non3 agricultural goods or services that are products of the

4 United States, including trade missions.

5 SEC. 2337. ADDITIONAL TRADE FUNCTIONS.

6 (a) TERMINATION OF AUTHORIZATIONS OF APPRO7 PRIATIONS.—

8 (1) NAFTA SECRETARIAT.—Section 105(b) of

9 the North American Free Trade Agreement Imple10 mentation Act (19 U.S.C. 3315(b)) is amended by

11 striking ‘‘each fiscal year after fiscal year 1993’’ and

12 inserting ‘‘each of fiscal years 1994 and 1995’’.

13 (2) BORDER ENVIRONMENT COOPERATION COM14 MISSION.—Section 533(a)(2) of the North American

15 Free Trade Agreement Implementation Act (19

16 U.S.C. 3473(a)(2)) is amended by striking ‘‘and

17 each fiscal year thereafter’’ and inserting ‘‘fiscal

18 year 1995’’.

19 (b) FUNCTIONS RELATED TO TEXTILE AGREE20 MENTS.—

21 (1) FUNCTIONS OF CITA.—(A) Subject to sub22 paragraph (B), those functions delegated to the

23 Committee for the Implementation of Textile Agree24 ments established under Executive Order 11651 (7
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1 U.S.C. 1854 note) (hereafter in this subsection re2 ferred to as ‘‘CITA’’) are transferred to the USTR.

3 (B) Those functions delegated to CITA that re4 late to the assessment of the impact of textile im5 ports on domestic industry are transferred to the

6 International Trade Commission. The International

7 Trade Commission shall make a determination pur8 suant to the preceding sentence within 60 days after

9 receiving a complaint or request for an investigation.

10 (2) ABOLITION OF CITA.—CITA is abolished.

11 Subchapter D—Administrative Provisions

12 SEC. 2341. PERSONNEL PROVISIONS.

13 (a) APPOINTMENTS.—The USTR may appoint and

14 fix the compensation of such officers and employees, in15 cluding investigators, attorneys, and administrative law

16 judges, as may be necessary to carry out the functions

17 of the USTR and the Office. Except as otherwise provided

18 by law, such officers and employees shall be appointed in

19 accordance with the civil service laws and their compensa20 tion fixed in accordance with title 5, United States Code.

21 (b) POSITIONS ABOVE GS–15.—(1) At the request

22 of the USTR, the Director of the Office of Personnel Man23 agement shall, under section 5108 of title 5, United States

24 Code, provide for the establishment in a grade level above

25 GS–15 of the General Service, and in the Senior Executive
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1 Service, of a number of positions in the Office equal to

2 the number of positions in that grade level which were

3 used primarily for the performance of functions and of4 fices transferred by this subtitle and which were assigned

5 and filled on the day before the effective date of this sub6 title.

7 (2) Appointments to positions provided for under this

8 subsection may be made without regard to the provisions

9 of section 3324 of title 5, United States Code, if the indi10 vidual appointed in such position is an individual who is

11 transferred in connection with the transfer of functions

12 and offices under this subtitle and, on the day before the

13 effective date of this subtitle, holds a position and has du14 ties comparable to those of the position to which appointed

15 under this subsection.

16 (3) The authority under this subsection with respect

17 to any position established at a grade level above GS–15

18 shall terminate when the person first appointed to fill such

19 position ceases to hold such position.

20 (4) For purposes of section 414(a)(3)(A) of the Civil

21 Service Reform Act of 1978, an individual appointed

22 under this subsection shall be deemed to occupy the same

23 position as the individual occupied on the day before the

24 effective date of this subtitle.
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1 (c) EXPERTS AND CONSULTANTS.—The USTR may

2 obtain the services of experts and consultants in accord3 ance with section 3109 of title 5, United States Code, and

4 compensate such experts and consultants for each day (in5 cluding traveltime) at rates not in excess of the maximum

6 rate of pay for a position above GS–15 of the General

7 Schedule under section 5332 of such title. The USTR may

8 pay experts and consultants who are serving away from

9 their homes or regular place of business travel expenses

10 and per diem in lieu of subsistence at rates authorized

11 by sections 5702 and 5703 of such title for persons in

12 Government service employed intermittently.

13 (d) VOLUNTARY SERVICES.—(1)(A) The USTR is

14 authorized to accept voluntary and uncompensated serv15 ices without regard to the provisions of section 1342 of

16 title 31, United States Code, if such services will not be

17 used to displace Federal employees employed on a full18 time, part-time, or seasonal basis.

19 (B) The USTR is authorized to accept volunteer serv20 ice in accordance with the provisions of section 3111 of

21 title 5, United States Code.

22 (2) The USTR is authorized to provide for incidental

23 expenses, including but not limited to transportation, lodg24 ing, and subsistence for individuals who provide voluntary

25 services under subparagraph (A) or (B) of paragraph (1).
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1 (3) An individual who provides voluntary services

2 under paragraph (1)(A) shall not be considered a Federal

3 employee for any purpose other than for purposes of chap4 ter 81 of title 5, United States Code, relating to com5 pensation for work injuries, and chapter 171 of title 28,

6 United States Code, relating to tort claims.

7 (e) FOREIGN SERVICE POSITIONS.—In order to as8 sure United States representation in trade matters at a

9 level commensurate with the level of representation main10 tained by industrial nations which are major trade com11 petitors of the United States, the Secretary of State shall

12 classify certain positions at Foreign Service posts as com13 mercial minister positions and shall assign members of the

14 Foreign Service performing functions of the Office, with

15 the concurrence of the USTR, to such positions in nations

16 which are major trade competitors of the United States.

17 The Secretary of State shall obtain and use the rec18 ommendations of the USTR with respect to the number

19 of positions to be so classified under this subsection.

20 SEC. 2342. DELEGATION AND ASSIGNMENT.

21 Except where otherwise expressly prohibited by law

22 or otherwise provided by this subtitle, the USTR may dele23 gate any of the functions transferred to the USTR by this

24 subtitle and any function transferred or granted to the

25 USTR after the effective date of this subtitle to such offi-
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1 cers and employees of the Office as the USTR may des2 ignate, and may authorize successive redelegations of such

3 functions as may be necessary or appropriate. No delega4 tion of functions by the USTR under this section or under

5 any other provision of this subtitle shall relieve the USTR

6 of responsibility for the administration of such functions.

7 SEC. 2343. SUCCESSION.

8 (a) ORDER OF SUCCESSION.—Subject to the author9 ity of the President, and except as provided in section

10 2321(b), the USTR shall prescribe the order by which offi11 cers of the Office who are appointed by the President, by

12 and with the advice and consent of the Senate, shall act

13 for, and perform the functions of, the USTR or any other

14 officer of the Office appointed by the President, by and

15 with the advice and consent of the Senate, during the ab16 sence or disability of the USTR or such other officer, or

17 in the event of a vacancy in the office of the USTR or

18 such other officer.

19 (b) CONTINUATION.—Notwithstanding any other pro20 vision of law, and unless the President directs otherwise,

21 an individual acting for the USTR or another officer of

22 the Office pursuant to subsection (a) shall continue to

23 serve in that capacity until the absence or disability of

24 the USTR or such other officer no longer exists or a suc-
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1 cessor to the USTR or such other officer has been ap2 pointed by the President and confirmed by the Senate.

3 SEC. 2344. REORGANIZATION.

4 (a) IN GENERAL.—Subject to subsection (b), the

5 USTR is authorized to allocate or reallocate functions

6 among the officers of the Office, and to establish, consoli7 date, alter, or discontinue such organizational entities in

8 the Office as may be necessary or appropriate.

9 (b) EXCEPTION.—The USTR may not exercise the

10 authority under subsection (a) to establish, consolidate,

11 alter, or discontinue any organizational entity in the Office

12 or allocate or reallocate any function of an officer or em13 ployee of the Office that is inconsistent with any specific

14 provision of this subtitle.

15 SEC. 2345. RULES.

16 The USTR is authorized to prescribe, in accordance

17 with the provisions of chapters 5 and 6 of title 5, United

18 States Code, such rules and regulations as the USTR de19 termines necessary or appropriate to administer and man20 age the functions of the USTR or the Office.

21 SEC. 2346. FUNDS TRANSFER.

22 The USTR may, when authorized in an appropriation

23 Act in any fiscal year, transfer funds from one appropria24 tion to another within the Office, except that no appro25 priation for any fiscal year shall be either increased or
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1 decreased by more than 10 percent and no such transfer

2 shall result in increasing any such appropriation above the

3 amount authorized to be appropriated therefor.

4 SEC. 2347. CONTRACTS, GRANTS, AND COOPERATIVE

5 AGREEMENTS.

6 (a) IN GENERAL.—Subject to the provisions of the

7 Federal Property and Administrative Services Act of

8 1949, the USTR may make, enter into, and perform such

9 contracts, leases, cooperative agreements, grants, or other

10 similar transactions with public agencies, private organiza11 tions, and persons, and make payments (in lump sum or

12 installments, and by way of advance or reimbursement,

13 and, in the case of any grant, with necessary adjustments

14 on account of overpayments and underpayments) as the

15 USTR considers necessary or appropriate to carry out the

16 functions of the USTR or the Office.

17 (b) EXCEPTION.—Notwithstanding any other provi18 sion of this subtitle, the authority to enter into contracts

19 or to make payments under this subchapter shall be effec20 tive only to such extent or in such amounts as are provided

21 in advance in appropriation Acts. This subsection does not

22 apply with respect to the authority granted under section

23 2349.
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1 SEC. 2348. USE OF FACILITIES.

2 (a) USE BY USTR.—With their consent, the USTR,

3 with or without reimbursement, may use the research,

4 services, equipment, and facilities of—

5 (1) an individual,

6 (2) any public or private nonprofit agency or

7 organization, including any agency or instrumental8 ity of the United States or of any State, the District

9 of Columbia, the Commonwealth of Puerto Rico, or

10 any territory or possession of the United States,

11 (3) any political subdivision of any State, the

12 District of Columbia, the Commonwealth of Puerto

13 Rico, or any territory or possession of the United

14 States, or

15 (4) any foreign government,

16 in carrying out any function of the USTR or the Office.

17 (b) USE OF USTR FACILITIES.—The USTR, under

18 terms, at rates, and for periods that the USTR considers

19 to be in the public interest, may permit the use by public

20 and private agencies, corporations, associations or other

21 organizations, or individuals, of any real property, or any

22 facility, structure or other improvement thereon, under the

23 custody of the USTR. The USTR may require permittees

24 under this section to maintain or recondition, at their own

25 expense, the real property, facilities, structures, and im26 provements used by such permittees.
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1 SEC. 2349. GIFTS AND BEQUESTS.

2 (a) IN GENERAL.—The USTR is authorized to ac3 cept, hold, administer, and utilize gifts and bequests of

4 property, both real and personal, for the purpose of aiding

5 or facilitating the work of the Office. Gifts and bequests

6 of money and the proceeds from sales of other property

7 received as gifts or bequests shall be deposited in the Unit8 ed States Treasury in a separate fund and shall be dis9 bursed on order of the USTR. Property accepted pursuant

10 to this subsection, and the proceeds thereof, shall be used

11 as nearly as possible in accordance with the terms of the

12 gift or bequest.

13 (b) TAX TREATMENT.—For the purpose of Federal

14 income, estate, and gift taxes, and State taxes, property

15 accepted under subsection (a) shall be considered a gift

16 or bequest to or for the use of the United States.

17 (c) INVESTMENT.—Upon the request of the USTR,

18 the Secretary of the Treasury may invest and reinvest in

19 securities of the United States or in securities guaranteed

20 as to principal and interest by the United States any mon21 eys contained in the fund provided for in subsection (a).

22 Income accruing from such securities, and from any other

23 property held by the USTR pursuant to subsection (a),

24 shall be deposited to the credit of the fund, and shall be

25 disbursed upon order of the USTR.
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1 SEC. 2350. WORKING CAPITAL FUND.

2 (a) ESTABLISHMENT.—The USTR is authorized to

3 establish for the Office a working capital fund, to be avail4 able without fiscal year limitation, for expenses necessary

5 for the maintenance and operation of such common ad6 ministrative services as the USTR shall find to be desir7 able in the interest of economy and efficiency, including—

8 (1) a central supply service for stationery and

9 other supplies and equipment for which adequate

10 stocks may be maintained to meet in whole or in

11 part the requirements of the Office and its compo12 nents;

13 (2) central messenger, mail, and telephone serv14 ice and other communications services;

15 (3) office space and central services for docu16 ment reproduction and for graphics and visual aids;

17 (4) a central library service; and

18 (5) such other services as may be approved by

19 the Director of the Office of Management and Budg20 et.

21 (b) OPERATION OF FUND.—The capital of the fund

22 shall consist of any appropriations made for the purpose

23 of providing working capital and the fair and reasonable

24 value of such stocks of supplies, equipment, and other as25 sets and inventories on order as the USTR may transfer

26 to the fund, less the related liabilities and unpaid obliga-
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1 tions. The fund shall be reimbursed in advance from avail2 able funds of agencies and offices in the Office, or from

3 other sources, for supplies and services at rates which will

4 approximate the expense of operation, including the ac5 crual of annual leave and the depreciation of equipment.

6 The fund shall also be credited with receipts from sale or

7 exchange of property and receipts in payment for loss or

8 damage to property owned by the fund. There shall be cov9 ered into the United States Treasury as miscellaneous re10 ceipts any surplus of the fund (all assets, liabilities, and

11 prior losses considered) above the amounts transferred or

12 appropriated to establish and maintain the fund. There

13 shall be transferred to the fund the stocks of supplies,

14 equipment, other assets, liabilities, and unpaid obligations

15 relating to those services which the USTR determines will

16 be performed.

17 SEC. 2351. SERVICE CHARGES.

18 (a) AUTHORITY.—Notwithstanding any other provi19 sion of law, the USTR may establish reasonable fees and

20 commissions with respect to applications, documents,

21 awards, loans, grants, research data, services, and assist22 ance administered by the Office, and the USTR may

23 change and abolish such fees and commissions. Before es24 tablishing, changing, or abolishing any schedule of fees or
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1 commissions under this section, the USTR may submit

2 such schedule to the Congress.

3 (b) DEPOSITS.—The USTR is authorized to require

4 a deposit before the USTR provides any item, information,

5 service, or assistance for which a fee or commission is re6 quired under this section.

7 (c) DEPOSIT OF MONEYS.—Moneys received under

8 this section shall be deposited in the Treasury in a special

9 account for use by the USTR and are authorized to be

10 appropriated and made available until expended.

11 (d) FACTORS IN ESTABLISHING FEES AND COMMIS12 SIONS.—In establishing reasonable fees or commissions

13 under this section, the USTR may take into account—

14 (1) the actual costs which will be incurred in

15 providing the items, information, services, or assist16 ance concerned;

17 (2) the efficiency of the Government in provid18 ing such items, information, services, or assistance;

19 (3) the portion of the cost that will be incurred

20 in providing such items, information, services, or as21 sistance which may be attributed to benefits for the

22 general public rather than exclusively for the person

23 to whom the items, information, services, or assist24 ance is provided;
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1 (4) any public service which occurs through the

2 provision of such items, information, services, or as3 sistance; and

4 (5) such other factors as the USTR considers

5 appropriate.

6 (e) REFUNDS OF EXCESS PAYMENTS.—In any case

7 in which the USTR determines that any person has made

8 a payment which is not required under this section or has

9 made a payment which is in excess of the amount required

10 under this section, the USTR, upon application or other11 wise, may cause a refund to be made from applicable

12 funds.

13 SEC. 2352. SEAL OF OFFICE.

14 The USTR shall cause a seal of office to be made

15 for the Office of such design as the USTR shall approve.

16 Judicial notice shall be taken of such seal.

17 Subchapter E—Related Agencies

18 SEC. 2361. INTERAGENCY TRADE ORGANIZATION.

19 Section 242(a)(3) of the Trade Expansion Act of

20 1962 (19 U.S.C. 1872(a)(3)) is amended to read as fol21 lows:

22 ‘‘(3)(A) The interagency organization estab23 lished under subsection (a) shall be composed of—

24 ‘‘(i) the United States Trade Representa25 tive, who shall be the chairperson,
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1 ‘‘(ii) the Secretary of Agriculture,

2 ‘‘(iii) the Secretary of the Treasury,

3 ‘‘(iv) the Secretary of Labor,

4 ‘‘(v) the Secretary of State, and

5 ‘‘(vi) the representatives of such other de6 partments and agencies as the United States

7 Trade Representative shall designate.

8 ‘‘(B) The United States Trade Representative

9 may invite representatives from other agencies, as

10 appropriate, to attend particular meetings if subject

11 matters of specific functional interest to such agen12 cies are under consideration. It shall meet at such

13 times and with respect to such matters as the Presi14 dent or the chairperson shall direct.’’.

15 SEC. 2362. NATIONAL SECURITY COUNCIL.

16 The fourth paragraph of section 101(a) of the Na17 tional Security Act of 1947 (50 U.S.C. 402(a)) is amend18 ed—

19 (1) by redesignating clauses (5), (6), and (7) as

20 clauses (6), (7), and (8), respectively; and

21 (2) by inserting after clause (4) the following

22 new clause:

23 ‘‘(5) the United States Trade Representative;’’.
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1 SEC. 2363. INTERNATIONAL MONETARY FUND.

2 Section 3 of the Bretton Woods Agreement Act is

3 amended by adding at the end the following new sub4 section:

5 ‘‘(e) The United States executive director of the Fund

6 shall consult with the United States Trade Representative

7 with respect to matters under consideration by the Fund

8 which relate to trade.’’.

9 Subchapter F—Conforming Amendments

10 SEC. 2371. AMENDMENTS TO GENERAL PROVISIONS.

11 (a) INSPECTOR GENERAL.—The Inspector General

12 Act of 1978 is amended—

13 (1) in subsection 9(a)(1) by inserting after sub14 paragraph (W) the following:

15 ‘‘(X) of the United States Trade Rep16 resentative, all functions of the Inspector Gen17 eral of the Department of Commerce and the

18 Office of the Inspector General of the Depart19 ment of Commerce relating to the functions

20 transferred to the United States Trade Rep21 resentative by section 2332 of the Department

22 of Commerce Dismantling Act; and’’; and

23 (2) in section 11—

24 (A) in paragraph (1) by inserting ‘‘the

25 United States Trade Representative;’’ after

26 ‘‘the Attorney General;’’; and
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1 (B) in paragraph (2) by inserting ‘‘the Of2 fice of the United States Trade Representa3 tive,’’ after ‘‘Treasury;’’.

4 (b) AMENDMENT TO THE TRADE ACT OF 1974.—(1)

5 Chapter 4 of title I of the Trade Act of 1974 is amended

6 to read as follows:

7 ‘‘CHAPTER 4—REPRESENTATION IN

8 TRADE NEGOTIATIONS

9 ‘‘SEC. 141. FUNCTIONS OF THE UNITED STATES TRADE REP10 RESENTATIVE.

11 ‘‘The United States Trade Representative established

12 under section 2311 of the Department of Commerce Dis13 mantling Act shall—

14 ‘‘(1) be the chief representative of the United

15 States for each trade negotiation under this title or

16 chapter 1 of title III of this Act, or subtitle A of

17 title I of the Omnibus Trade and Competitiveness

18 Act of 1988, or any other provision of law enacted

19 after the Department of Commerce Dismantling Act;

20 ‘‘(2) report directly to the President and the

21 Congress, and be responsible to the President and

22 the Congress for the administration of trade agree23 ments programs under this Act, the Omnibus Trade

24 and Competitiveness Act of 1988, the Trade Expan25 sion Act of 1962, section 350 of the Tariff Act of
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1 1930, and any other provision of law enacted after

2 the Department of Commerce Dismantling Act;

3 ‘‘(3) advise the President and the Congress

4 with respect to nontariff barriers to international

5 trade, international commodity agreements, and

6 other matters which are related to the trade agree7 ments programs; and

8 ‘‘(4) be responsible for making reports to Con9 gress with respect to the matters set forth in para10 graphs (1) and (2).’’.

11 (2) The table of contents in the first section of the

12 Trade Act of 1974 is amended by striking the items relat13 ing to chapter 4 and section 141 and inserting the follow14 ing:

‘‘CHAPTER 4—REPRESENTATION IN TRADE NEGOTIATIONS

‘‘Sec. 141. Functions of the United States Trade Representative.’’.

15 (d) FOREIGN SERVICE PERSONNEL.—The Foreign

16 Service Act of 1980 is amended by striking paragraph (3)

17 of section 202(a) (22 U.S.C. 3922(a)) and inserting the

18 following:

19 ‘‘(3) The United States Trade Representative

20 may utilize the Foreign Service personnel system in

21 accordance with this Act—

22 ‘‘(A) with respect to the personnel per23 forming functions—
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1 ‘‘(i) which were transferred to the De2 partment of Commerce from the Depart3 ment of State by Reorganization Plan No.

4 3 of 1979; and

5 ‘‘(ii) which were subsequently trans6 ferred to the United States Trade Rep7 resentative by section 2332 of the Depart8 ment of Commerce Dismantling Act; and

9 ‘‘(B) with respect to other personnel of the

10 Office of United States Trade Representative to

11 the extent the President determines to be nec12 essary in order to enable the Office of the Unit13 ed States Trade Representative to carry out

14 functions which require service abroad.’’.

15 (e) CHIEF FINANCIAL OFFICERS.—Section 901(b)(1)

16 of title 31, United States Code, is amended by adding at

17 the end the following:

18 ‘‘(Q) The Office of the United States

19 Trade Representative.’’.

20 SEC. 2372. REPEALS.

21 Sections 1 and 2 of the Act of June 5, 1939 (15

22 U.S.C. 1502 and 1503; 53 Stat. 808), relating to the

23 Under Secretary of Commerce, are repealed.
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1 SEC. 2373. CONFORMING AMENDMENTS RELATING TO EX2 ECUTIVE SCHEDULE POSITIONS.

3 (a) POSITIONS AT LEVEL I.—Section 5312 of title

4 5, United States Code, is amended by amending the item

5 relating to the United States Trade Representative to read

6 as follows:

7 ‘‘United States Trade Representative, Office of

8 the United States Trade Representative.’’.

9 (b) POSITIONS AT LEVEL II.—Section 5313 of title

10 5, United States Code, is amended by adding at the end

11 the following:

12 ‘‘Deputy Administrator of the Office of the

13 United States Trade Representative.

14 ‘‘Deputy United States Trade Representatives,

15 Office of the United States Trade Representative

16 (2).’’.

17 (c) POSITIONS AT LEVEL III.—Section 5314 of title

18 5, United States Code, is amended by adding at the end

19 the following:

20 ‘‘Assistant Administrators, Office of the United

21 States Trade Representative (3).

22 ‘‘Director General for Export Promotion, Office

23 of the United States Trade Representative.’’.

24 (d) POSITIONS AT LEVEL IV.—Section 5315 of title

25 5, United States Code, is amended—
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1 (1) by striking the item relating to the Assist2 ant Secretary of Commerce and Director General of

3 the United States and Foreign Commercial Service;

4 and

5 (2) by adding at the end the following:

6 ‘‘General Counsel, Office of the United States

7 Trade Representative.

8 ‘‘Inspector General, Office of the United States

9 Trade Representative.

10 ‘‘Chief Financial Officer, Office of the United

11 States Trade Representative.’’.

12 Subchapter G—Miscellaneous

13 SEC. 2381. EFFECTIVE DATE.

14 (a) IN GENERAL.—This subtitle shall take effect on

15 the effective date specified in section 2208(a), except

16 that—

17 (1) section 2336 shall take effect on the date of

18 the enactment of this Act; and

19 (2) at any time after the date of the enactment

20 of this Act the officers provided for in subchapter B

21 may be nominated and appointed, as provided in

22 such subchapter.

23 (b) INTERIM COMPENSATION AND EXPENSES.—

24 Funds available to the Department of Commerce or the

25 Office of the United States Trade Representative (or any
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1 official or component thereof), with respect to the func2 tions transferred by this subtitle, may be used, with ap3 proval of the Director of the Office of Management and

4 Budget, to pay the compensation and expenses of an offi5 cer appointed under subsection (a) who will carry out such

6 functions until funds for that purpose are otherwise avail7 able.

8 SEC. 2382. INTERIM APPOINTMENTS.

9 (a) IN GENERAL.—If one or more officers required

10 by this subtitle to be appointed by and with the advice

11 and consent of the Senate have not entered upon office

12 on the effective date of this subtitle and notwithstanding

13 any other provision of law, the President may designate

14 any officer who was appointed by and with the advice and

15 consent of the Senate, and who was such an officer on

16 the day before the effective date of this subtitle, to act

17 in the office until it is filled as provided by this subtitle.

18 (b) COMPENSATION.—Any officer acting in an office

19 pursuant to subsection (a) shall receive compensation at

20 the rate prescribed by this subtitle for such office.

21 SEC. 2383. FUNDING REDUCTIONS RESULTING FROM REOR22 GANIZATION.

23 (a) FUNDING REDUCTIONS.—Notwithstanding the

24 transfer of functions under this subtitle, and except as

25 provided in subsection (b), the total amount appropriated
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1 by the United States in performing all functions vested

2 in the USTR and the Office pursuant to this subtitle shall

3 not exceed—

4 (1) for the first fiscal year that begins after the

5 abolishment date specified in section 2101(c), 75

6 percent of the total amount appropriated in fiscal

7 year 1995 for the performance of all such functions;

8 and

9 (2) for the second fiscal year that begins after

10 the abolishment date specified in section 2101(c)

11 and for each fiscal year thereafter, 65 percent of the

12 total amount appropriated in fiscal year 1995 for

13 the performance of all such functions.

14 (b) EXCEPTION.—Subsection (a) shall not apply to

15 obligations or expenditures incurred as a direct con16 sequence of the termination, transfer, or other disposition

17 of functions described in subsection (a) pursuant to this

18 title.

19 (c) RULE OF CONSTRUCTION.—This section shall

20 take precedence over any other provision of law unless

21 such provision explicitly refers to this section and makes

22 an exception to it.

23 (d) RESPONSIBILITY OF USTR.—The USTR, in con24 sultation with the Director of the Office of Management

25 and Budget, shall make such modifications in programs
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1 as are necessary to carry out the reductions in appropria2 tions set forth in paragraph (1) and (2) of subsection (a).

3 (e) RESPONSIBILITIES OF THE DIRECTOR OF THE

4 OFFICE OF MANAGEMENT AND BUDGET.—The Director

5 of the Office of Management and Budget shall include in

6 each report under sections 2105(a) and (b) a description

7 of actions taken to comply with the requirements of this

8 section.

9 Subtitle D—Patent and Trademark

10 Office Corporation

11 SEC. 2401. SHORT TITLE.

12 This subtitle may be cited as the ‘‘Patent and Trade13 mark Office Corporation Act of 1995’’.

14 CHAPTER 1—PATENT AND TRADEMARK

15 OFFICE

16 SEC. 2411. ESTABLISHMENT OF PATENT AND TRADEMARK

17 OFFICE AS A CORPORATION.

18 Section 1 of title 35, United States Code, is amended

19 to read as follows:

20 ‘‘§ 1. Establishment

21 ‘‘(a) ESTABLISHMENT.—The Patent and Trademark

22 Office is established as a wholly owned Government cor23 poration subject to chapter 91 of title 31, except as other24 wise provided in this title.
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1 ‘‘(b) OFFICES.—The Patent and Trademark Office

2 shall maintain an office in the District of Columbia, or

3 the metropolitan area thereof, for the service of process

4 and papers and shall be deemed, for purposes of venue

5 in civil actions, to be a resident of the district in which

6 its principal office is located. The Patent and Trademark

7 Office may establish offices in such other places as it con8 siders necessary or appropriate in the conduct of its busi9 ness.

10 ‘‘(c) REFERENCE.—For purposes of this title, the

11 Patent and Trademark Office shall also be referred to as

12 the ‘Office’.’’.

13 SEC. 2412. POWERS AND DUTIES.

14 Section 2 of title 35, United States Code, is amended

15 to read as follows:

16 ‘‘§ 2. Powers and Duties

17 ‘‘(a) IN GENERAL.—The Patent and Trademark Of18 fice shall be responsible for—

19 ‘‘(1) the granting and issuing of patents and

20 the registration of trademarks;

21 ‘‘(2) conducting studies, programs, or ex22 changes of items or services regarding domestic and

23 international patent and trademark law or the ad24 ministration of the Office, including programs to

25 recognize, identify, assess, and forecast the tech-
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1 nology of patented inventions and their utility to in2 dustry;

3 ‘‘(3) authorizing or conducting studies and pro4 grams cooperatively with foreign patent and trade5 mark offices and international organizations, in con6 nection with the granting and issuing of patents and

7 the registration of trademarks; and

8 ‘‘(4) disseminating to the public information

9 with respect to patents and trademarks.

10 ‘‘(b) SPECIFIC POWERS.—The Office—

11 ‘‘(1) shall have perpetual succession;

12 ‘‘(2) shall adopt and use a corporate seal, which

13 shall be judicially noticed and with which letters pat14 ent, certificates of trademark registrations, and pa15 pers issued by the Office shall be authenticated;

16 ‘‘(3) may sue and be sued in its corporate name

17 and be represented by its own attorneys in all judi18 cial and administrative proceedings, subject to the

19 provisions of section 8 of this title;

20 ‘‘(4) may indemnify the Commissioner of Pat21 ents and Trademarks, and other officers, attorneys,

22 agents, and employees (including members of the

23 Management Advisory Board established in section

24 5) of the Office for liabilities and expenses incurred

25 within the scope of their employment;
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1 ‘‘(5) may adopt, amend, and repeal bylaws,

2 rules, and regulations, governing the manner in

3 which its business will be conducted and the powers

4 granted to it by law will be exercised;

5 ‘‘(6) may acquire, construct, purchase, lease,

6 hold, manage, operate, improve, alter, and renovate

7 any real, personal, or mixed property, or any interest

8 therein, as it considers necessary to carry out its

9 functions;

10 ‘‘(7)(A) may make such purchases, contracts

11 for the construction, maintenance, or management

12 and operation of facilities, and contracts for supplies

13 or services, without regard to section 111 of the

14 Federal Property and Administrative Services Act of

15 1949 (40 U.S.C. 759); and

16 ‘‘(B) may enter into and perform such pur17 chases and contracts for printing services, including

18 the process of composition, platemaking, presswork,

19 silk screen processes, binding, microform, and the

20 products of such processes, as it considers necessary

21 to carry out the functions of the Office, without re22 gard to sections 501 through 517 and 1101 through

23 1123 of title 44;

24 ‘‘(8) may use, with their consent, services,

25 equipment, personnel, and facilities of other depart-
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1 ments, agencies, and instrumentalities of the Fed2 eral Government, on a reimbursable basis, and co3 operate with such other departments, agencies, and

4 instrumentalities in the establishment and use of

5 services, equipment, and facilities of the Office;

6 ‘‘(9) may obtain from the Administrator of

7 General Services such services as the Administrator

8 is authorized to provide to other agencies of the

9 United States, on the same basis as those services

10 are provided to other agencies of the United States;

11 ‘‘(10) may use, with the consent of the United

12 States and the agency, government, or international

13 organization concerned, the services, records, facili14 ties, or personnel of any State or local government

15 agency or instrumentality or foreign government or

16 international organization to perform functions on

17 its behalf;

18 ‘‘(11) may determine the character of and the

19 necessity for its obligations and expenditures and

20 the manner in which they shall be incurred, allowed,

21 and paid, subject to the provisions of this title and

22 the Act of July 5, 1946 (commonly referred to as

23 the ‘Trademark Act of 1946’);

24 ‘‘(12) may retain and use all of its revenues

25 and receipts, including revenues from the sale, lease,
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1 or disposal of any real, personal, or mixed property,

2 or any interest therein, of the Office, in carrying out

3 the functions of the Office, including for research

4 and development and capital investment, subject to

5 the provisions of section 10101 of the Omnibus

6 Budget Reconciliation Act of 1990 (35 U.S.C. 41

7 note);

8 ‘‘(13) shall have the priority of the United

9 States with respect to the payment of debts from

10 bankrupt, insolvent, and decedents’ estates;

11 ‘‘(14) may accept monetary gifts or donations

12 of services, or of real, personal, or mixed property,

13 in order to carry out the functions of the Office;

14 ‘‘(15) may execute, in accordance with its by15 laws, rules, and regulations, all instruments nec16 essary and appropriate in the exercise of any of its

17 powers;

18 ‘‘(16) may provide for liability insurance and

19 insurance against any loss in connection with its

20 property, other assets, or operations either by con21 tract or by self-insurance; and

22 ‘‘(17) shall pay any settlement or judgment en23 tered against it from the funds of the Office and not

24 from amounts available under section 1304 of title

25 31.’’.
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1 SEC. 2413. ORGANIZATION AND MANAGEMENT.

2 Section 3 of title 35, United States Code, is amended

3 to read as follows:

4 ‘‘§ 3. Officers and employees

5 ‘‘(a) COMMISSIONER.—

6 ‘‘(1) IN GENERAL.—The management of the

7 Patent and Trademark Office shall be vested in a

8 Commissioner of Patents and Trademarks (hereafter

9 in this title referred to as the ‘Commissioner’), who

10 shall be a citizen of the United States and who shall

11 be appointed by the President, by and with the ad12 vice and consent of the Senate. The Commissioner

13 shall be a person who, by reason of professional

14 background and experience in patent and trademark

15 law, is especially qualified to manage the Office.

16 ‘‘(2) DUTIES.—

17 ‘‘(A) IN GENERAL.—The Commissioner

18 shall be responsible for the management and di19 rection of the Office, including the issuance of

20 patents and the registration of trademarks.

21 ‘‘(B) ADVISING THE PRESIDENT.—The

22 Commissioner shall advise the President of all

23 activities of the Patent and Trademark Office

24 undertaken in response to obligations of the

25 United States under treaties and executive

26 agreements, or which relate to cooperative pro-
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1 grams with those authorities of foreign govern2 ments that are responsible for granting patents

3 or registering trademarks. The Commissioner

4 shall also recommend to the President changes

5 in law or policy which may improve the ability

6 of United States citizens to secure and enforce

7 patent rights or trademark rights in the United

8 States or in foreign countries.

9 ‘‘(C) CONSULTING WITH THE MANAGE10 MENT ADVISORY BOARD.—The Commissioner

11 shall consult with the Management Advisory

12 Board established in section 5 on a regular

13 basis on matters relating to the operation of the

14 Patent and Trademark Office, and shall consult

15 with the Board before submitting budgetary

16 proposals to the Office of Management and

17 Budget or changing or proposing to change pat18 ent or trademark user fees or patent or trade19 mark regulations.

20 ‘‘(D) SECURITY CLEARANCES.—The Com21 missioner, in consultation with the Director of

22 the Office of Personnel Management, shall

23 maintain a program for identifying national se24 curity positions and providing for appropriate

25 security clearances.
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1 ‘‘(3) TERM.—The Commissioner shall serve a

2 term of 5 years, and may continue to serve after the

3 expiration of the Commissioner’s term until a suc4 cessor is appointed and assumes office. The Com5 missioner may be reappointed to subsequent terms.

6 ‘‘(4) OATH.—The Commissioner shall, before

7 taking office, take an oath to discharge faithfully the

8 duties of the Office.

9 ‘‘(5) COMPENSATION.—The Commissioner shall

10 receive compensation at the rate of pay in effect for

11 Level III of the Executive Schedule under section

12 5314 of title 5.

13 ‘‘(6) REMOVAL.—The Commissioner may be re14 moved from office by the President only for cause.

15 ‘‘(7) DESIGNEE OF COMMISSIONER.—The Com16 missioner shall designate an officer of the Office who

17 shall be vested with the authority to act in the ca18 pacity of the Commissioner in the event of the ab19 sence or incapacity of the Commissioner.

20 ‘‘(b) OFFICERS AND EMPLOYEES OF THE OFFICE.—

21 ‘‘(1) DEPUTY COMMISSIONERS.—The Commis22 sioner shall appoint a Deputy Commissioner for Pat23 ents and a Deputy Commissioner for Trademarks

24 for terms that shall expire on the date on which the

25 Commissioner’s term expires. The Deputy Commis-
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1 sioner for Patents shall be a person with dem2 onstrated experience in patent law and the Deputy

3 Commissioner for Trademarks shall be a person with

4 demonstrated experience in trademark law. The

5 Deputy Commissioner for Patents and the Deputy

6 Commissioner for Trademarks shall be the principal

7 policy advisors to the Commissioner on all aspects of

8 the activities of the Office that affect the adminis9 tration of patent and trademark operations, respec10 tively.

11 ‘‘(2) OTHER OFFICERS AND EMPLOYEES.—The

12 Commissioner shall—

13 ‘‘(A) appoint an Inspector General and

14 such other officers, employees (including attor15 neys), and agents of the Office as the Commis16 sioner considers necessary to carry out its func17 tions;

18 ‘‘(B) fix the compensation of such officers

19 and employees; and

20 ‘‘(C) define the authority and duties of

21 such officers and employees and delegate to

22 them such of the powers vested in the Office as

23 the Commissioner may determine.

24 The Office shall not be subject to any administra25 tively or statutorily imposed limitation on positions
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1 or personnel, and no positions or personnel of the

2 Office shall be taken into account for purposes of

3 applying any such limitation, except to the extent

4 otherwise specifically provided by statute with re5 spect to the Office.

6 ‘‘(c) LIMITS ON COMPENSATION.—Except as other7 wise provided in this title or any other provision of law,

8 the basic pay of an officer or employee of the Office for

9 any calendar year may not exceed the annual rate of basic

10 pay in effect for level IV of the Executive Schedule under

11 section 5315 of title 5. The Commissioner shall by regula12 tion establish a limitation on the total compensation pay13 able to officers or employees of the Office, which may not

14 exceed the annual rate of basic pay in effect for level I

15 of the Executive Schedule under section 5312 of title 5.

16 ‘‘(d) INAPPLICABILITY OF TITLE 5 GENERALLY.—

17 Except as otherwise provided in this section, officers and

18 employees of the Office shall not be subject to the provi19 sions of title 5 relating to Federal employees.

20 ‘‘(e) CONTINUED APPLICABILITY OF CERTAIN PRO21 VISION OF TITLE 5.—The following provisions of title 5

22 shall apply to the Office and its officers and employees:

23 ‘‘(1) Section 3110 (relating to employment of

24 relatives; restrictions).
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1 ‘‘(2) Subchapter II of chapter 55 (relating to

2 withholding pay).

3 ‘‘(3) Subchapter II of chapter 73 (relating to

4 employment limitations).

5 ‘‘(f) PROVISIONS OF TITLE 5 RELATING TO CERTAIN

6 BENEFITS.—

7 ‘‘(1) RETIREMENT.—(A)(i) Any individual who

8 becomes an officer or employee of the Office pursu9 ant to subsection (h) shall, if such individual has at

10 least 3 years of creditable service (within the mean11 ing of section 8332 or 8411 of title 5) as of the ef12 fective date of the Patent and Trademark Office

13 Corporation Act of 1995, remain subject to sub14 chapter III of chapter 83 or chapter 84 of such title,

15 as the case may be, so long as such individual con16 tinues to hold an office or position in or under the

17 Office without a break in service.

18 ‘‘(ii)(I) Except as provided in subclause (II),

19 with respect to an individual described in clause (i),

20 the Office shall make the appropriate withholding

21 from pay and shall pay the contributions required of

22 an employing agency into the Civil Service Retire23 ment and Disability Fund and, if applicable, the

24 Thrift Savings Fund in accordance with applicable
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1 provisions of subchapter III of chapter 83 or chapter

2 84 of title 5, as the case may be.

3 ‘‘(II) In the case of an officer or employee who

4 remains subject to subchapter III of chapter 83 of

5 such title by virtue of this subparagraph, the Office

6 shall, instead of the amount which would otherwise

7 be required under the second sentence of section

8 8334(a)(1) of title 5, contribute an amount equal to

9 the normal-cost percentage (determined with respect

10 to officers and employees of the Office using dy11 namic assumptions, as defined by section 8401(9) of

12 such title) of the individual’s basic pay, minus the

13 amount required to be withheld from such pay under

14 such section 8334(a)(1).

15 ‘‘(B)(i) Notwithstanding subsection (d), the

16 provisions of subchapter III of chapter 83 or chapter

17 84 of title 5 (as applicable) which relate to disability

18 shall be considered to remain in effect, with respect

19 to an individual who becomes an officer or employee

20 of the Office pursuant to subsection (h), until the

21 end of the 2-year period beginning on the effective

22 date of the Patent and Trademark Office Corpora23 tion Act of 1995 or, if earlier, until such individual

24 satisfies the prerequisites for coverage under any

25 program offered by the Office to replace the disabil-
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1 ity retirement program under chapter 83 or 84 of

2 title 5.

3 ‘‘(ii) This clause applies with respect to any of4 ficer or employee of the Office who is receiving dis5 ability coverage under this subparagraph and has

6 completed the service requirement specified in the

7 first sentence of section 8337(a) or 8451(a)(1)(A) of

8 title 5 (as applicable), but who is not described in

9 subparagraph (A)(i). In the case of any individual to

10 whom this clause applies, the Office shall pay into

11 the Civil Service Retirement and Disability Fund an

12 amount equal to that portion of the normal-cost per13 centage (determined in the same manner as under

14 subparagraph (A)(ii)(II)) of the basic pay of such

15 individual (for service performed during the period

16 during which such individual is receiving such cov17 erage) allocable to such coverage. Any amounts pay18 able under this clause shall be paid at such time and

19 in such manner as mutually agreed to by the Office

20 and the Office of Personnel Management, and shall

21 be in lieu of any individual or agency contributions

22 otherwise required.

23 ‘‘(2) HEALTH BENEFITS.—(A) Officers and em24 ployees of the Office shall not become ineligible to

25 participate in the health benefits program under
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1 chapter 89 of title 5 by reason of subsection (d)

2 until the effective date of elections made during the

3 first election period (under section 8905(f) of title 5)

4 beginning after the end of the 2-year period begin5 ning on the effective date of the Patent and Trade6 mark Office Corporation Act of 1995.

7 ‘‘(B)(i) With respect to any individual who be8 comes an officer or employee of the Office pursuant

9 to subsection (h), the eligibility of such individual to

10 participate in such program as an annuitant (or of

11 any other person to participate in such program as

12 an annuitant based on the death of such individual)

13 shall be determined disregarding the requirements of

14 section 8905(b) of title 5. The preceding sentence

15 shall not apply if the individual ceases to be an offi16 cer or employee of the Office for any period of time

17 after becoming an officer or employee of the Office

18 pursuant to subsection (h) and before separation.

19 ‘‘(ii) The Government contributions authorized

20 by section 8906 for health benefits for anyone par21 ticipating in the health benefits program pursuant to

22 this subparagraph shall be made by the Office in the

23 same manner as provided under section 8906(g)(2)

24 of title 5 with respect to the United States Postal

25 Service for individuals associated therewith.
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1 ‘‘(iii) For purposes of this subparagraph, the

2 term ‘annuitant’ has the meaning given such term

3 by section 8901(3) of title 5.

4 ‘‘(3) LIFE INSURANCE.—(A) Officers and em5 ployees of the Office shall not become ineligible to

6 participate in the life insurance program under

7 chapter 87 of title 5 by reason of subsection (d)

8 until the first day after the end of the 2-year period

9 beginning on the effective date of the Patent and

10 Trademark Office Corporation Act of 1995.

11 ‘‘(B)(i) Eligibility for life insurance coverage

12 after retirement or while in receipt of compensation

13 under subchapter I of chapter 81 of title 5 shall be

14 determined, in the case of any individual who be15 comes an officer or employee of the Office pursuant

16 to subsection (h), without regard to the require17 ments of section 8706(b) (1) or (2), but subject to

18 the condition specified in the last sentence of para19 graph (2)(B)(i) of this subsection.

20 ‘‘(ii) Government contributions under section

21 8708(d) on behalf of any such individual shall be

22 made by the Office in the same manner as provided

23 under paragraph (3) thereof with respect to the

24 United States Postal Service for individuals associ25 ated therewith.
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1 ‘‘(4) EMPLOYEES’ COMPENSATION FUND.—The

2 Office shall remain responsible for reimbursing the

3 Employees’ Compensation Fund, pursuant to section

4 8147 of title 5, for compensation paid or payable

5 after the effective date of the Patent and Trademark

6 Office Corporation Act of 1995 in accordance with

7 chapter 81 of title 5 with regard to any injury, dis8 ability, or death due to events arising before such

9 date, whether or not a claim has been filed or is

10 final on such date.

11 ‘‘(5) REQUIREMENT THAT THE OFFICE OFFER

12 CERTAIN MINIMUM NUMBER OF LIFE AND HEALTH

13 INSURANCE POLICIES.—The Office shall offer at

14 least 1 life insurance policy and at least 3 health in15 surance policies to its officers and employees, com16 parable to existing Federal benefits, beginning on

17 the first day after the end of the 2-year period be18 ginning on the effective date of the Patent and

19 Trademark Office Corporation Act of 1995.

20 ‘‘(g) LABOR-MANAGEMENT RELATIONS.—

21 ‘‘(1) LABOR RELATIONS AND EMPLOYEE RELA22 TIONS PROGRAMS.—The Office shall develop labor

23 relations and employee relations programs with the

24 objective of improving productivity and efficiency, in25 corporating the following principles:
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1 ‘‘(A) Such programs shall be consistent

2 with the merit principles in section 2301(b) of

3 title 5.

4 ‘‘(B) Such programs shall provide veterans

5 preference protections equivalent to those estab6 lished by sections 2801, 3308–3318, and 3320

7 of title 5.

8 ‘‘(C)(i) In order to maximize individual

9 freedom of choice in the pursuit of employment

10 and to encourage an economic climate condu11 cive to economic growth, the right to work shall

12 not be subject to undue restraint or coercion.

13 The right to work shall not be infringed or re14 stricted in any way based on membership in, af15 filiation with, or financial support of a labor or16 ganization.

17 ‘‘(ii) No person shall be required, as a con18 dition of employment or continuation of employ19 ment:

20 ‘‘(I) To resign or refrain from vol21 untary membership in, voluntary affiliation

22 with, or voluntary financial support of a

23 labor organization.

24 ‘‘(II) To become or remain a member

25 of a labor organization.
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1 ‘‘(III) To pay any dues, fees, assess2 ments, or other charges of any kind or

3 amount to a labor organization.

4 ‘‘(IV) To pay to any charity or other

5 third party, in lieu of such payments, any

6 amount equivalent to or a pro-rata portion

7 of dues, fees, assessments, or other charges

8 regularly required of members of a labor

9 organization.

10 ‘‘(V) To be recommended, approved,

11 referred, or cleared by or through a labor

12 organization.

13 ‘‘(iii) This subparagraph shall not apply to

14 a person described in section 7103(a)(2)(v) of

15 title 5 or a ‘supervisor’, ‘management official’,

16 or ‘confidential employee’ as those terms are

17 defined in 7103(a)(10), (11), and (13) of such

18 title.

19 ‘‘(iv) Any labor organization recognized by

20 the Office as the exclusive representative of a

21 unit of employees of the Office shall represent

22 the interests of all employees in that unit with23 out discrimination and without regard to labor

24 organization membership.
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1 ‘‘(2) ADOPTION OF EXISTING LABOR AGREE2 MENTS.—The Office shall adopt all labor agreements

3 which are in effect, as of the day before the effective

4 date of the Patent and Trademark Office Corpora5 tion Act of 1995, with respect to such Office (as

6 then in effect). Each such agreement shall remain in

7 effect for the 2-year period commencing on such

8 date, unless the agreement provides for a shorter du9 ration or the parties agree otherwise before such pe10 riod ends.

11 ‘‘(h) CARRYOVER OF PERSONNEL.—

12 ‘‘(1) FROM PTO.—Effective as of the effective

13 date of the Patent and Trademark Office Corpora14 tion Act of 1995, all officers and employees of the

15 Patent and Trademark Office on the day before

16 such effective date shall become officers and employ17 ees of the Office, without a break in service.

18 ‘‘(2) OTHER PERSONNEL.—Any individual who,

19 on the day before the effective date of the Patent

20 and Trademark Office Corporation Act of 1995, is

21 an officer or employee of the Department of Com22 merce (other than an officer or employee under

23 paragraph (1)) shall be transferred to the Office if—

24 ‘‘(A) such individual serves in a position

25 for which a major function is the performance
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1 of work reimbursed by the Patent and Trade2 mark Office, as determined by the Secretary of

3 Commerce;

4 ‘‘(B) such individual serves in a position

5 that performed work in support of the Patent

6 and Trademark Office during at least half of

7 the incumbent’s work time, as determined by

8 the Secretary of Commerce; or

9 ‘‘(C) such transfer would be in the interest

10 of the Office, as determined by the Secretary of

11 Commerce in consultation with the Commis12 sioner of Patents and Trademarks.

13 Any transfer under this paragraph shall be effective

14 as of the same effective date as referred to in para15 graph (1), and shall be made without a break in

16 service.

17 ‘‘(3) ACCUMULATED LEAVE.—The amount of

18 sick and annual leave and compensatory time accu19 mulated under title 5 before the effective date de20 scribed in paragraph (1), by officers or employees of

21 the Patent and Trademark Office who so become of22 ficers or employees of the Office, are obligations of

23 the Office.

24 ‘‘(4) TERMINATION RIGHTS.—Any employee re25 ferred to in paragraph (1) or (2) of this subsection
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1 whose employment with the Office is terminated

2 during the 2-year period beginning on the effective

3 date of the Patent and Trademark Office Corpora4 tion Act of 1995 shall be entitled to rights and bene5 fits, to be afforded by the Office, similar to those

6 such employee would have had under Federal law if

7 termination had occurred immediately before such

8 date. An employee who would have been entitled to

9 appeal any such termination to the Merit Systems

10 Protection Board, if such termination had occurred

11 immediately before such effective date, may appeal

12 any such termination occurring within this 2-year

13 period to the Board under such procedures as it may

14 prescribe.

15 ‘‘(5) CONTINUATION IN OFFICE OF CERTAIN

16 OFFICERS.—(A) The individual serving as the Com17 missioner of Patents and Trademarks on the day be18 fore the effective date of the Patent and Trademark

19 Office Corporation Act of 1995 may serve as the

20 Commissioner until the earlier of 1 year after the ef21 fective date of that Act or the date on which a Com22 missioner is appointed under subsection (a).

23 ‘‘(B) The individual serving as the Assistant

24 Commissioner for Patents on the day before the ef25 fective date of the Patent and Trademark Office
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1 Corporation Act of 1995 may serve as the Deputy

2 Commissioner for Patents until the earlier of 1 year

3 after the effective date of that Act or the date on

4 which a Deputy Commissioner for Patents is ap5 pointed under subsection (b).

6 ‘‘(C) The individual serving as the Assistant

7 Commissioner for Trademarks on the day before the

8 effective date of the Patent and Trademark Office

9 Corporation Act of 1995 may serve as the Deputy

10 Commissioner for Trademarks until the earlier of 1

11 year after the effective date of that Act or the date

12 on which a Deputy Commissioner for Trademarks is

13 appointed under subsection (b).

14 ‘‘(i) COMPETITIVE STATUS.—For purposes of ap15 pointment to a position in the competitive service for

16 which an officer or employee of the Office is qualified,

17 such officer or employee shall not forfeit any competitive

18 status, acquired by such officer or employee before the ef19 fective date of the Patent and Trademark Office Corpora20 tion Act of 1995, by reason of becoming an officer or em21 ployee of the Office pursuant to subsection (h).

22 ‘‘(j) SAVINGS PROVISIONS.—All orders, determina23 tions, rules, and regulations regarding compensation and

24 benefits and other terms and conditions of employment,

25 in effect for the Office and its officers and employees im-
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1 mediately before the effective date of the Patent and

2 Trademark Office Corporation Act of 1995, shall continue

3 in effect with respect to the Office and its officers and

4 employees until modified, superseded, or set aside by the

5 Office or a court of appropriate jurisdiction or by oper6 ation of law.’’.

7 SEC. 2414. MANAGEMENT ADVISORY BOARD.

8 Chapter 1 of part I of title 35, United States Code,

9 is amended by inserting after section 4 the following:

10 ‘‘§ 5. Patent and Trademark Office Management Advi11 sory Board

12 ‘‘(a) ESTABLISHMENT OF MANAGEMENT ADVISORY

13 BOARD.—

14 ‘‘(1) APPOINTMENT.—The Patent and Trade15 mark Office shall have a Management Advisory

16 Board (hereafter in this title referred to as the

17 ‘Board’) of 12 members, 4 of whom shall be ap18 pointed by the President, 4 of whom shall be ap19 pointed by the Speaker of the House of Representa20 tives, and 4 of whom shall be appointed by the

21 President pro tempore of the Senate. Not more than

22 3 of the 4 members appointed by each appointing

23 authority shall be members of the same political

24 party.
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1 ‘‘(2) TERMS.—Members of the Board shall be

2 appointed for a term of 4 years each, except that of

3 the members first appointed by each appointing au4 thority, 1 shall be for a term of 1 year, 1 shall be

5 for a term of 2 years, and 1 shall be for a term of

6 3 years. No member may serve more than 1 term.

7 ‘‘(3) CHAIR.—The President shall designate the

8 chair of the Board, whose term as chair shall be for

9 3 years.

10 ‘‘(4) TIMING OF APPOINTMENTS.—Initial ap11 pointments to the Board shall be made within 3

12 months after the effective date of the Patent and

13 Trademark Office Corporation Act of 1995, and va14 cancies shall be filled within 3 months after they

15 occur.

16 ‘‘(5) VACANCIES.—Vacancies shall be filled in

17 the manner in which the original appointment was

18 made under this subsection. Members appointed to

19 fill a vacancy occurring before the expiration of the

20 term for which the member’s predecessor was ap21 pointed shall be appointed only for the remainder of

22 that term. A member may serve after the expiration

23 of that member’s term until a successor is ap24 pointed.
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1 ‘‘(b) BASIS FOR APPOINTMENTS.—Members of the

2 Board shall be citizens of the United States who shall be

3 chosen so as to represent the interests of diverse users

4 of the Patent and Trademark Office, and shall include in5 dividuals with substantial background and achievement in

6 corporate finance and management.

7 ‘‘(c) APPLICABILITY OF CERTAIN ETHICS LAWS.—

8 Members of the Board shall be special Government em9 ployees within the meaning of section 202 of title 18.

10 ‘‘(d) MEETINGS.—The Board shall meet at the call

11 of the chair to consider an agenda set by the chair.

12 ‘‘(e) DUTIES.—The Board shall—

13 ‘‘(1) review the policies, goals, performance,

14 budget, and user fees of the Patent and Trademark

15 Office, and advise the Commissioner on these mat16 ters; and

17 ‘‘(2) within 60 days after the end of each fiscal

18 year, prepare an annual report on the matters re19 ferred to in paragraph (1), transmit the report to

20 the President and the Committees on the Judiciary

21 of the Senate and the House of Representatives, and

22 publish the report in the Patent and Trademark Of23 fice Official Gazette.

24 ‘‘(f) STAFF.—The Board shall employ a staff of not

25 more than 10 members and shall procure support services
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1 for the staff adequate to enable the Board to carry out

2 its functions, using funds available to the Commissioner

3 under section 42 of this title. The Board shall ensure that

4 members of the staff, other than clerical staff, are espe5 cially qualified in the areas of patents, trademarks, or

6 management of public agencies. Persons employed by the

7 Board shall receive compensation as determined by the

8 Board, which may not exceed the limitations set forth in

9 section 3(c) of this title, shall serve in accordance with

10 terms and conditions of employment established by the

11 Board, and shall be subject solely to the direction of the

12 Board, notwithstanding any other provision of law.

13 ‘‘(g) COMPENSATION.—Members of the Board shall

14 be compensated for each day (including travel time) dur15 ing which they are attending meetings or conferences of

16 the Board or otherwise engaged in the business of the

17 Board, at the rate which is the daily equivalent of the an18 nual rate of basic pay in effect for level III of the Execu19 tive Schedule under section 5314 of title 5, and while away

20 from their homes or regular places of business they may

21 be allowed travel expenses, including per diem in lieu of

22 subsistence, as authorized by section 5703 of title 5.

23 ‘‘(h) ACCESS TO INFORMATION.—Members of the

24 Board shall be provided access to records and information

25 in the Patent and Trademark Office, except for personnel
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1 or other privileged information and information concern2 ing patent applications required to be kept in confidence

3 by section 122 of this title.’’.

4 SEC. 2415. INDEPENDENCE FROM DEPARTMENT OF COM5 MERCE.

6 (a) DUTIES OF COMMISSIONER.—Section 6 of title

7 35, United States Code, is amended—

8 (1) by striking ‘‘, under the direction of the

9 Secretary of Commerce,’’ each place it appears; and

10 (2) by striking ‘‘, subject to the approval of the

11 Secretary of Commerce,’’.

12 (b) REGULATIONS FOR AGENTS AND ATTORNEYS.—

13 Section 31 of title 35, United States Code, is amended

14 by striking ‘‘, subject to the approval of the Secretary of

15 Commerce,’’.

16 SEC. 2416. TRADEMARK TRIAL AND APPEAL BOARD.

17 Section 17 of the Act of July 5, 1946 (commonly re18 ferred to as the ‘‘Trademark Act of 1946’’) (15 U.S.C.

19 1067) is amended to read as follows:

20 ‘‘SEC. 17. (a) In every case of interference, opposition

21 to registration, application to register as a lawful concur22 rent user, or application to cancel the registration of a

23 mark, the Commissioner shall give notice to all parties and

24 shall direct a Trademark Trial and Appeal Board to deter25 mine and decide the respective rights of registration.
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1 ‘‘(b) The Trademark Trial and Appeal Board shall

2 include the Commissioner, the Deputy Commissioner for

3 Patents, the Deputy Commissioner for Trademarks, and

4 members competent in trademark law who are appointed

5 by the Commissioner.’’.

6 SEC. 2417. BOARD OF PATENT APPEALS AND INTER7 FERENCES.

8 Section 7 of title 35, United States Code, is amended

9 to read as follows:

10 ‘‘§ 7. Board of Patent Appeals and Interferences

11 ‘‘(a) ESTABLISHMENT AND COMPOSITION.—There

12 shall be in the Patent and Trademark Office a Board of

13 Patent Appeals and Interferences. The Commissioner, the

14 Deputy Commissioner for Patents, the Deputy Commis15 sioner for Trademarks, and the examiners-in-chief shall

16 constitute the Board. The examiners-in-chief shall be per17 sons of competent legal knowledge and scientific ability.

18 ‘‘(b) DUTIES.—The Board of Patent Appeals and

19 Interferences shall, on written appeal of an applicant, re20 view adverse decisions of examiners upon applications for

21 patents and shall determine priority and patentability of

22 invention in interferences declared under section 135(a)

23 of this title. Each appeal and interference shall be heard

24 by at least 3 members of the Board, who shall be des-
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1 ignated by the Commissioner. Only the Board of Patent

2 Appeals and Interferences may grant rehearings.’’.

3 SEC. 2418. SUITS BY AND AGAINST THE CORPORATION.

4 Chapter 1 of part I of title 35, United States Code,

5 is amended—

6 (1) by redesignating sections 8 through 14 as

7 sections 9 through 15; and

8 (2) by inserting after section 7 the following

9 new section:

10 ‘‘§ 8. Suits by and against the Corporation

11 ‘‘(a) IN GENERAL.—

12 ‘‘(1) ACTIONS UNDER UNITED STATES LAW.—

13 Any civil action or proceeding to which the Patent

14 and Trademark Office is a party is deemed to arise

15 under the laws of the United States. The Federal

16 courts shall have exclusive jurisdiction over all civil

17 actions by or against the Office.

18 ‘‘(2) CONTRACT CLAIMS.—Any action or pro19 ceeding against the Office in which any claim is cog20 nizable under the Contract Disputes Act of 1978 (41

21 U.S.C. 601 and following) shall be subject to that

22 Act. For purposes of that Act, the Commissioner

23 shall be deemed to be the agency head with respect

24 to contract claims arising with respect to the Office.

25 Any other action or proceeding against the Office
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1 founded upon contract may be brought in an appro2 priate district court, notwithstanding any provision

3 of title 28.

4 ‘‘(3) TORT CLAIMS.—(A) Any action or pro5 ceeding against the Office in which any claim is cog6 nizable under the provisions of section 1346(b) and

7 chapter 171 of title 28, shall be governed by those

8 provisions.

9 ‘‘(B) Any other action or proceeding against the

10 Office founded upon tort may be brought in an ap11 propriate district court without regard to the provi12 sions of section 1346(b) and chapter 171 of title 28.

13 ‘‘(4) PROHIBITION ON ATTACHMENT, LIENS,

14 ETC.—No attachment, garnishment, lien, or similar

15 process, intermediate or final, in law or equity, may

16 be issued against property of the Office.

17 ‘‘(5) SUBSTITUTION OF OFFICE AS PARTY.—

18 The Office shall be substituted as defendant in any

19 civil action or proceeding against an officer or em20 ployee of the Office, if the Office determines that the

21 officer or employee was acting within the scope of

22 his or her employment with the Office. If the Office

23 refuses to certify scope of employment, the officer or

24 employee may at any time before trial petition the

25 court to find and certify that the officer or employee
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1 was acting within the scope of his or her employ2 ment. Upon certification by the court, the Office

3 shall be substituted as the party defendant. A copy

4 of the petition shall be served upon the Office. In

5 any such civil action or proceeding to which para6 graph (3)(A) applies, the provisions of section

7 1346(b) and chapter 171 of title 28 shall apply in

8 lieu of this paragraph.

9 ‘‘(b) RELATIONSHIP WITH JUSTICE DEPARTMENT.—

10 ‘‘(1) EXERCISE BY OFFICE OF ATTORNEY GEN11 ERAL’S AUTHORITIES.—Except as provided in this

12 section, with respect to any action or proceeding in

13 which the Office is a party or an officer or employee

14 thereof is a party in his or her official capacity, the

15 Office, officer, or employee may exercise, without

16 prior authorization from the Attorney General, the

17 authorities and duties that otherwise would be exer18 cised by the Attorney General on behalf of the Of19 fice, officer, or employee under title 28 and other

20 laws.

21 ‘‘(2) APPEARANCES BY ATTORNEY GENERAL.—

22 Notwithstanding paragraph (1), at any time the At23 torney General may, in any action or proceeding de24 scribed in paragraph (1), file an appearance on be25 half of the Office or the officer or employee involved,
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1 without the consent of the Office or the officer or

2 employee. Upon such filing, the Attorney General

3 shall represent the Office or such officer or employee

4 with exclusive authority in the conduct, settlement,

5 or compromise of that action or proceeding.

6 ‘‘(3) CONSULTATIONS WITH AND ASSISTANCE

7 BY ATTORNEY GENERAL.—The Office may consult

8 with the Attorney General concerning any legal mat9 ter, and the Attorney General shall provide advice

10 and assistance to the Office, including representing

11 the Office in litigation, if requested by the Office.

12 ‘‘(4) REPRESENTATION BEFORE SUPREME

13 COURT.—The Attorney General shall represent the

14 Office in all cases before the United States Supreme

15 Court.

16 ‘‘(5) QUALIFICATIONS OF ATTORNEYS.—An at17 torney admitted to practice to the bar of the highest

18 court of at least one State in the United States or

19 the District of Columbia and employed by the Office

20 may represent the Office in any legal proceeding in

21 which the Office or an officer or employee of the Of22 fice is a party or interested, regardless of whether

23 the attorney is a resident of the jurisdiction in which

24 the proceeding is held and notwithstanding any

25 other prerequisites of qualification or appearance re-
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1 quired by the court or administrative body before

2 which the proceeding is conducted.’’.

3 SEC. 2419. ANNUAL REPORT OF COMMISSIONER.

4 Section 15 of title 35, United States Code, as redesig5 nated by section 2418 of this Act, is amended to read as

6 follows:

7 ‘‘§ 15. Annual report to Congress

8 ‘‘The Commissioner shall report to the Congress, not

9 later than 180 days after the end of each fiscal year, the

10 moneys received and expended by the Office, the purposes

11 for which the moneys were spent, the quality and quantity

12 of the work of the Office, and other information relating

13 to the Office. The report under this section shall also meet

14 the requirements of section 9106 of title 31, to the extent

15 that such requirements are not inconsistent with the pre16 ceding sentence. The report required under this section

17 shall be deemed to be the report of the Patent and Trade18 mark Office under section 9106 of title 31, and the Com19 missioner shall not file a separate report under such sec20 tion.’’.

21 SEC. 2420. SUSPENSION OR EXCLUSION FROM PRACTICE.

22 Section 32 of title 35, United States Code, is amend23 ed by inserting before the last sentence the following: ‘‘The

24 Commissioner shall have the discretion to designate any

25 attorney who is an officer or employee of the Patent and
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1 Trademark Office to conduct the hearing required by this

2 section.’’.

3 SEC. 2421. FUNDING.

4 Section 42 of title 35, United States Code, is amend5 ed to read as follows:

6 ‘‘§ 42. Patent and Trademark Office funding

7 ‘‘(a) FEES PAYABLE TO THE OFFICE.—All fees for

8 services performed by or materials furnished by the Patent

9 and Trademark Office shall be payable to the Office.

10 ‘‘(b) USE OF MONEYS.—Moneys of the Patent and

11 Trademark Office not otherwise used to carry out the

12 functions of the Office shall be kept in cash on hand or

13 on deposit, or invested in obligations of the United States

14 or guaranteed by the United States, or in obligations or

15 other instruments which are lawful investments for fidu16 ciary, trust, or public funds. Fees available to the Commis17 sioner under this title shall be used exclusively for the

18 processing of patent applications and for other services

19 and materials relating to patents. Fees available to the

20 Commissioner under section 31 of the Act of July 5, 1946

21 (commonly referred to as the ‘Trademark Act of 1946’;

22 15 U.S.C. 1113), shall be used exclusively for the process23 ing of trademark registrations and for other services and

24 materials relating to trademarks.
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1 ‘‘(c) BORROWING AUTHORITY.—The Patent and

2 Trademark Office is authorized to issue from time to time

3 for purchase by the Secretary of the Treasury its deben4 tures, bonds, notes, and other evidences of indebtedness

5 (hereafter in this subsection referred to as ‘obligations’)

6 to assist in financing its activities. Borrowing under this

7 subsection shall be subject to prior approval in appropria8 tion Acts. Such borrowing shall not exceed amounts ap9 proved in appropriation Acts. Any such borrowing shall

10 be repaid only from fees paid to the Office and surcharges

11 appropriated by the Congress. Such obligations shall be

12 redeemable at the option of the Office before maturity in

13 the manner stipulated in such obligations and shall have

14 such maturity as is determined by the Office with the ap15 proval of the Secretary of the Treasury. Each such obliga16 tion issued to the Treasury shall bear interest at a rate

17 not less than the current yield on outstanding marketable

18 obligations of the United States of comparable maturity

19 during the month preceding the issuance of the obligation

20 as determined by the Secretary of the Treasury. The Sec21 retary of the Treasury shall purchase any obligations of

22 the Office issued under this subsection and for such pur23 pose the Secretary of the Treasury is authorized to use

24 as a public-debt transaction the proceeds of any securities

25 issued under chapter 31 of title 31, and the purposes for
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1 which securities may be issued under that chapter are ex2 tended to include such purpose. Payment under this sub3 section of the purchase price of such obligations of the

4 Patent and Trademark Office shall be treated as public

5 debt transactions of the United States.’’.

6 SEC. 2422. AUDITS.

7 Chapter 4 of part I of title 35, United States Code,

8 is amended by adding at the end the following new section:

9 ‘‘§ 43. Audits

10 ‘‘(a) IN GENERAL.—Financial statements of the Pat11 ent and Trademark Office shall be prepared on an annual

12 basis in accordance with generally accepted accounting

13 principles. Such statements shall be audited by an inde14 pendent certified public accountant chosen by the Com15 missioner. The audit shall be conducted in accordance with

16 standards that are consistent with generally accepted Gov17 ernment auditing standards and other standards estab18 lished by the Comptroller General, and with the generally

19 accepted auditing standards of the private sector, to the

20 extent feasible. The Commissioner shall transmit to the

21 Committees on the Judiciary of the House of Representa22 tives and the Senate the results of each audit under this

23 subsection.

24 ‘‘(b) REVIEW BY COMPTROLLER GENERAL.—The

25 Comptroller General may review any audit of the financial
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1 statement of the Patent and Trademark Office that is con2 ducted under subsection (a). The Comptroller General

3 shall report to the Congress and the Office the results of

4 any such review and shall include in such report appro5 priate recommendations.

6 ‘‘(c) AUDIT BY COMPTROLLER GENERAL.—The

7 Comptroller General may audit the financial statements

8 of the Office and such audit shall be in lieu of the audit

9 required by subsection (a). The Office shall reimburse the

10 Comptroller General for the cost of any audit conducted

11 under this subsection.

12 ‘‘(d) ACCESS TO OFFICE RECORDS.—All books, fi13 nancial records, report files, memoranda, and other prop14 erty that the Comptroller General deems necessary for the

15 performance of any audit shall be made available to the

16 Comptroller General.

17 ‘‘(e) APPLICABILITY IN LIEU OF TITLE 31 PROVI18 SIONS.—This section applies to the Office in lieu of the

19 provisions of section 9105 of title 31.’’.

20 SEC. 2423. TRANSFERS.

21 (a) TRANSFER OF FUNCTIONS.—Except as otherwise

22 provided in this Act, there are transferred to, and vested

23 in, the Patent and Trademark Office all functions, powers,

24 and duties vested by law in the Secretary of Commerce

25 or the Department of Commerce or in the officers or com-
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1 ponents in the Department of Commerce with respect to

2 the authority to grant patents and register trademarks,

3 and in the Patent and Trademark Office, as in effect on

4 the day before the effective date of this subtitle, and in

5 the officers and components of such Office.

6 (b) TRANSFER OF FUNDS AND PROPERTY.—The

7 Secretary of Commerce shall transfer to the Patent and

8 Trademark Office, on the effective date of this subtitle,

9 so much of the assets, liabilities, contracts, property,

10 records, and unexpended and unobligated balances of ap11 propriations, authorizations, allocations, and other funds

12 employed, held, used, arising from, available to, or to be

13 made available to the Department of Commerce, including

14 funds set aside for accounts receivable which are related

15 to functions, powers, and duties which are vested in the

16 Patent and Trademark Office by this subtitle.

17 CHAPTER 2—EFFECTIVE DATE;

18 TECHNICAL AMENDMENTS

19 SEC. 2431. EFFECTIVE DATE.

20 This subtitle shall take effect 6 months after the date

21 of the enactment of this Act.

22 SEC. 2432. TECHNICAL AND CONFORMING AMENDMENTS.

23 (a) AMENDMENTS TO TITLE 35.—
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1 (1) The table of contents for part I of title 35,

2 United States Code, is amended by amending the

3 item relating to chapter 1 to read as follows:

‘‘1. Establishment, Officers and Employees, Functions ........................... 1.’’

4 (2) The table of sections for chapter 1 of title

5 35, United States Code, is amended to read as fol6 lows:

7 ‘‘CHAPTER 1—ESTABLISHMENT, OFFICERS

8 AND EMPLOYEES, FUNCTIONS

‘‘Sec.

‘‘1. Establishment.

‘‘2. Powers and duties.

‘‘3. Officers and employees.

‘‘4. Restrictions on officers and employees as to interest in patents.

‘‘5. Patent and Trademark Office Management Advisory Board.

‘‘6. Duties of Commissioner.

‘‘7. Board of Patent Appeals and Interferences.

‘‘8. Suits by and against the Corporation.

‘‘9. Library.

‘‘10. Classification of patents.

‘‘11. Certified copies of records.

‘‘12. Publications.

‘‘13. Exchange of copies of patents with foreign countries.

‘‘14. Copies of patents for public libraries.

‘‘15. Annual report to Congress.’’.

9 (3) The table of contents for chapter 4 of part

10 I of title 35, United States Code, is amended by

11 adding at the end the following new item:

‘‘43. Audits.’’.

12 (b) OTHER PROVISIONS OF LAW.—

13 (1) Section 9101(3) of title 31, United States

14 Code, is amended by adding at the end the follow15 ing:
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1 ‘‘(O) the Patent and Trademark Office.’’.

2 (2) Section 500(e) of title 5, United States

3 Code, is amended by striking ‘‘Patent Office’’ and

4 inserting ‘‘Patent and Trademark Office’’.

5 (3) Section 5102(c)(23) of title 5, United

6 States Code, is amended by striking ‘‘, Department

7 of Commerce’’.

8 (4) Section 5316 of title 5, United States Code,

9 is amended by striking ‘‘Commissioner of Patents,

10 Department of Commerce.’’, ‘‘Deputy Commissioner

11 of Patents and Trademarks.’’, ‘‘Assistant Commis12 sioner for Patents.’’, and ‘‘Assistant Commissioner

13 for Trademarks.’’.

14 (5) Section 12 of the Act of February 14, 1903

15 (15 U.S.C. 1511) is amended by striking ‘‘(d) Pat16 ent and Trademark Office;’’ and redesignating sub17 sections (a) through (g) as paragraphs (1) through

18 (6), respectively.

19 (6) The Act of April 12, 1892 (27 Stat. 395;

20 20 U.S.C. 91) is amended by striking ‘‘Patent Of21 fice’’ and inserting ‘‘Patent and Trademark Office’’.

22 (7) Sections 505(m) and 512(o) of the Federal

23 Food, Drug, and Cosmetic Act (21 U.S.C. 355(m)

24 and 360b(o)) are each amended by striking ‘‘of the

25 Department of Commerce’’.
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1 (8) Section 105(e) of the Federal Alcohol Ad2 ministration Act (27 U.S.C. 205(e)) is amended by

3 striking ‘‘Patent Office’’ and inserting ‘‘Patent and

4 Trademark Office’’.

5 (9) Section 1744 of title 28, United States

6 Code is amended—

7 (A) by striking ‘‘Patent Office’’ each place

8 it appears and inserting ‘‘Patent and Trade9 mark Office’’; and

10 (B) by striking ‘‘Commissioner of Patents’’

11 and inserting ‘‘Commissioner of Patents and

12 Trademarks’’.

13 (10) Section 1745 of title 28, United States

14 Code, is amended by striking ‘‘United States Patent

15 Office’’ and inserting ‘‘Patent and Trademark Of16 fice’’.

17 (11) Section 1928 of title 28, United States

18 Code, is amended by striking ‘‘Patent Office’’ and

19 inserting ‘‘Patent and Trademark Office’’.

20 (12) Section 160 of the Atomic Energy Act of

21 1954 (42 U.S.C. 2190) is amended—

22 (A) by striking ‘‘United States Patent Of23 fice’’ and inserting ‘‘Patent and Trademark Of24 fice’’; and
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1 (B) by striking ‘‘Commissioner of Patents’’

2 and inserting ‘‘Commissioner of Patents and

3 Trademarks’’.

4 (13) Section 305(c) of the National Aeronautics

5 and Space Act of 1958 (42 U.S.C. 2457(c)) is

6 amended by striking ‘‘Commissioner of Patents’’ and

7 inserting ‘‘Commissioner of Patents and Trade8 marks’’.

9 (14) Section 12(a) of the Solar Heating and

10 Cooling Demonstration Act of 1974 (42 U.S.C.

11 5510(a)) is amended by striking ‘‘Commissioner of

12 the Patent Office’’ and inserting ‘‘Commissioner of

13 Patents and Trademarks’’.

14 (15) Section 1111 of title 44, United States

15 Code, is amended by striking ‘‘the Commissioner of

16 Patents,’’.

17 (16) Section 1114 of title 44, United States

18 Code, is amended by striking ‘‘the Commissioner of

19 Patents,’’.

20 (17) Section 1123 of title 44, United States

21 Code, is amended by striking ‘‘the Patent Office,’’.

22 (18) Sections 1337 and 1338 of title 44, United

23 States Code, and the items relating to those sections

24 in the table of contents for chapter 13 of such title,

25 are repealed.
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1 (19) Section 10(i) of the Trading With the

2 Enemy Act (50 U.S.C. App. 10(i)) is amended by

3 striking ‘‘Commissioner of Patents’’ and inserting

4 ‘‘Commissioner of Patents and Trademarks’’.

5 (20) Section 8G(a)(2) of the Inspector General

6 Act of 1978 (5 U.S.C. App.) is amended by inserting

7 ‘‘the Patent and Trademark Office,’’, after ‘‘the

8 Panama Canal Commission,’’.

9 Subtitle E—Miscellaneous

10 Provisions

11 SEC. 2501. REFERENCES.

12 Any reference in any other Federal law, Executive

13 order, rule, regulation, or delegation of authority, or any

14 document of or pertaining to a department or office from

15 which a function is transferred by this title—

16 (1) to the head of such department or office is

17 deemed to refer to the head of the department or of18 fice to which such function is transferred; or

19 (2) to such department or office is deemed to

20 refer to the department or office to which such func21 tion is transferred.

22 SEC. 2502. EXERCISE OF AUTHORITIES.

23 Except as otherwise provided by law, a Federal offi24 cial to whom a function is transferred by this title may,

25 for purposes of performing the function, exercise all au-
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1 thorities under any other provision of law that were avail2 able with respect to the performance of that function to

3 the official responsible for the performance of the function

4 immediately before the effective date of the transfer of the

5 function under this title.

6 SEC. 2503. SAVINGS PROVISIONS.

7 (a) LEGAL DOCUMENTS.—All orders, determinations,

8 rules, regulations, permits, grants, loans, contracts, agree9 ments, certificates, licenses, and privileges—

10 (1) that have been issued, made, granted, or al11 lowed to become effective by the President, the Sec12 retary of Commerce, the United States Trade Rep13 resentative, any officer or employee of any office

14 transferred by this title, or any other Government

15 official, or by a court of competent jurisdiction, in

16 the performance of any function that is transferred

17 by this title, and

18 (2) that are in effect on the effective date of

19 such transfer (or become effective after such date

20 pursuant to their terms as in effect on such effective

21 date),

22 shall continue in effect according to their terms until

23 modified, terminated, superseded, set aside, or revoked in

24 accordance with law by the President, any other author-
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1 ized official, a court of competent jurisdiction, or operation

2 of law.

3 (b) PROCEEDINGS.—This title shall not affect any

4 proceedings or any application for any benefits, service,

5 license, permit, certificate, or financial assistance pending

6 on the date of the enactment of this Act before an office

7 transferred by this title, but such proceedings and applica8 tions shall be continued. Orders shall be issued in such

9 proceedings, appeals shall be taken therefrom, and pay10 ments shall be made pursuant to such orders, as if this

11 Act had not been enacted, and orders issued in any such

12 proceeding shall continue in effect until modified, termi13 nated, superseded, or revoked by a duly authorized official,

14 by a court of competent jurisdiction, or by operation of

15 law. Nothing in this subsection shall be considered to pro16 hibit the discontinuance or modification of any such pro17 ceeding under the same terms and conditions and to the

18 same extent that such proceeding could have been discon19 tinued or modified if this title had not been enacted.

20 (c) SUITS.—This title shall not affect suits com21 menced before the date of the enactment of this Act, and

22 in all such suits, proceeding shall be had, appeals taken,

23 and judgments rendered in the same manner and with the

24 same effect as if this title had not been enacted.
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1 (d) NONABATEMENT OF ACTIONS.—No suit, action,

2 or other proceeding commenced by or against the Depart3 ment of Commerce or the Secretary of Commerce, or by

4 or against any individual in the official capacity of such

5 individual as an officer or employee of an office trans6 ferred by this title, shall abate by reason of the enactment

7 of this title.

8 (e) CONTINUANCE OF SUITS.—If any Government of9 ficer in the official capacity of such officer is party to a

10 suit with respect to a function of the officer, and under

11 this title such function is transferred to any other officer

12 or office, then such suit shall be continued with the other

13 officer or the head of such other office, as applicable, sub14 stituted or added as a party.

15 (f) ADMINISTRATIVE PROCEDURE AND JUDICIAL RE16 VIEW.—Except as otherwise provided by this title, any

17 statutory requirements relating to notice, hearings, action

18 upon the record, or administrative or judicial review that

19 apply to any function transferred by this title shall apply

20 to the exercise of such function by the head of the Federal

21 agency, and other officers of the agency, to which such

22 function is transferred by this title.

23 SEC. 2504. TRANSFER OF ASSETS.

24 Except as otherwise provided in this title, so much

25 of the personnel, property, records, and unexpended bal-
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1 ances of appropriations, allocations, and other funds em2 ployed, used, held, available, or to be made available in

3 connection with a function transferred to an official or

4 agency by this title shall be available to the official or the

5 head of that agency, respectively, at such time or times

6 as the Director of the Office of Management and Budget

7 directs for use in connection with the functions trans8 ferred.

9 SEC. 2505. DELEGATION AND ASSIGNMENT.

10 Except as otherwise expressly prohibited by law or

11 otherwise provided in this title, an official to whom func12 tions are transferred under this title (including the head

13 of any office to which functions are transferred under this

14 title) may delegate any of the functions so transferred to

15 such officers and employees of the office of the official as

16 the official may designate, and may authorize successive

17 redelegations of such functions as may be necessary or ap18 propriate. No delegation of functions under this section

19 or under any other provision of this title shall relieve the

20 official to whom a function is transferred under this title

21 of responsibility for the administration of the function.
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1 SEC. 2506. AUTHORITY OF DIRECTOR OF THE OFFICE OF

2 MANAGEMENT AND BUDGET WITH RESPECT

3 TO FUNCTIONS TRANSFERRED.

4 (a) DETERMINATIONS.—If necessary, the Director

5 shall make any determination of the functions that are

6 transferred under this title.

7 (b) INCIDENTAL TRANSFERS.—The Director, at such

8 time or times as the Director shall provide, may make

9 such determinations as may be necessary with regard to

10 the functions transferred by this title, and to make such

11 additional incidental dispositions of personnel, assets, li12 abilities, grants, contracts, property, records, and unex13 pended balances of appropriations, authorizations, alloca14 tions, and other funds held, used, arising from, available

15 to, or to be made available in connection with such func16 tions, as may be necessary to carry out the provisions of

17 this title. The Director shall provide for the termination

18 of the affairs of all entities terminated by this title and

19 for such further measures and dispositions as may be nec20 essary to effectuate the purposes of this title.

21 SEC. 2507. CERTAIN VESTING OF FUNCTIONS CONSIDERED

22 TRANSFERS.

23 For purposes of this title, the vesting of a function

24 in a department or office pursuant to reestablishment of

25 an office shall be considered to be the transfer of the

26 function.
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1 SEC. 2508. AVAILABILITY OF EXISTING FUNDS.

2 Existing appropriations and funds available for the

3 performance of functions, programs, and activities termi4 nated pursuant to this title shall remain available, for the

5 duration of their period of availability, for necessary ex6 penses in connection with the termination and resolution

7 of such functions, programs, and activities.

8 SEC. 2509. DEFINITIONS.

9 For purposes of this title—

10 (1) the term ‘‘function’’ includes any duty, obli11 gation, power, authority, responsibility, right, privi12 lege, activity, or program; and

13 (2) the term ‘office’ includes any office, admin14 istration, agency, bureau, institute, council, unit, or15 ganizational entity, or component thereof.

16 Subtitle F—Citizens Commission

17 on 21st Century Government

18 SEC. 2601. SHORT TITLE AND PURPOSE.

19 (a) SHORT TITLE.—This subtitle may be cited as the

20 ‘‘21st Century Government Act’’.

21 (b) PURPOSE.—The purpose of this subtitle is to es22 tablish a bipartisan commission to—

23 (1) identify and analyze the current functions

24 and missions of the Federal Government; and
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1 (2) based on that analysis, develop rec2 ommendations to restructure the executive branch of

3 the Federal Government, in order to—

4 (A) focus Federal efforts on those core

5 functions and missions that the Federal Gov6 ernment must perform in the 21st Century;

7 (B) ensure that the Federal Government

8 performs those functions as effectively and effi9 ciently as possible;

10 (C) consolidate executive organizations

11 around clear, specific missions reflecting cur12 rent national priorities;

13 (D) eliminate functions that do not ad14 vance current national priorities;

15 (E) eliminate duplication of functions and

16 activities within and among departments and

17 agencies;

18 (F) streamline organizational hierarchy so

19 as to reduce costs and increase accountability

20 for performance; and

21 (G) provide a basis for—

22 (i) the subsequent implementation of

23 operational reforms for Federal agencies,

24 including administrative consolidation and
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1 the provision of 1-stop services for citizens;

2 and

3 (ii) more detailed structural improve4 ments within each agency.

5 SEC. 2602. CITIZENS COMMISSION ON 21ST CENTURY GOV6 ERNMENT.

7 (a) ESTABLISHMENT.—There is established in the

8 legislative branch an independent commission to be known

9 as the Citizens Commission on 21st Century Government

10 (in this subtitle referred to as the ‘‘Commission’’).

11 (b) APPOINTMENT OF COMMISSIONERS.—

12 (1) COMPOSITION.—The Commission shall be a

13 bipartisan body composed of 11 members, who shall

14 be appointed as follows:

15 (A) Three members shall be appointed by

16 the Speaker of the House of Representatives.

17 (B) Three members shall be appointed by

18 the majority leader of the Senate.

19 (C) Two members shall be appointed by

20 the minority leader of the House of Representa21 tives.

22 (D) Two members shall be appointed by

23 the minority leader of the Senate.

24 (E) One member appointed jointly by the

25 Speaker of the House of Representatives and
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1 the majority leader of the Senate, in consulta2 tion with the minority leaders of the House of

3 Representatives and the Senate, who shall be

4 the Chairman of the Commission.

5 (2) MEMBERSHIP QUALIFICATIONS.—Any citi6 zen of the United States is eligible to be appointed

7 as a member of the Commission, except an individ8 ual serving as a Member of Congress or an elected

9 or appointed official of the executive branch of the

10 Federal Government.

11 (3) CONFLICT OF INTERESTS.—For purposes of

12 chapter 11 of title 18, United States Code, a mem13 ber of the Commission shall be a special Government

14 employee.

15 (4) DATE OF APPOINTMENTS.—All members of

16 the Commission shall be appointed no later than 30

17 days after the date of the enactment of this Act.

18 (c) TERMS.—Each member of the Commission shall

19 serve until the termination of the Commission.

20 (d) VACANCIES.—A vacancy on the Commission shall

21 be filled in the same manner as was the original appoint22 ment.

23 (e) MEETINGS.—The Commission shall meet as nec24 essary to carry out its responsibilities.
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1 (f) TRAVEL EXPENSES.—Members of the Commis2 sion shall receive travel expenses, including per diem in

3 lieu of subsistence, in accordance with sections 5702 and

4 5703 of title 5, United States Code.

5 (g) DIRECTOR.—

6 (1) APPOINTMENT.—The Chairman, in con7 sultation with the other members of the Commission,

8 shall appoint a Director of the Commission.

9 (2) PAY.—The Director shall be paid at the

10 rate of basic pay payable for level IV of the Execu11 tive Schedule under section 5315 of title 5, United

12 States Code.

13 (h) STAFF.—

14 (1) APPOINTMENT.—The Director may, with

15 the approval of the Chairman, appoint and fix the

16 pay of employees of the Commission without regard

17 to the provisions of title 5, United States Code, gov18 erning appointment in the competitive service, and

19 any Commission employee may be paid without re20 gard to the provisions of chapter 51 and subchapter

21 III of chapter 53 of that title relating to classifica22 tion and General Schedule pay rates, except that a

23 Commission employee may not receive pay in excess

24 of the annual rate of basic pay payable for level V
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1 of the Executive Schedule under section 5316 of title

2 5, United States Code.

3 (2) DETAIL.—(A) Upon request of the Direc4 tor, the head of any Federal department or agency

5 may detail any of the personnel of the department

6 or agency to the Commission to assist the Commis7 sion in carrying out its duties under this subtitle.

8 Such details may be made with or without reim9 bursement, and shall be without interruption or loss

10 of civil service status or privilege.

11 (B) Upon request of the Director, a Member of

12 Congress or an officer who is the head of an office

13 or committee of the Senate or House of Representa14 tives or of an agency within the legislative branch

15 may detail an employee of the office or committee of

16 which such Member or officer is the head to the

17 Commission to assist the Commission in carrying

18 out its duties under this subtitle.

19 (i) SUPPORT SERVICES.—The Comptroller General of

20 the United States shall provide support services to the

21 Commission in accordance with an agreement entered into

22 with the Commission.

23 (j) OTHER AUTHORITIES.—The Commission may

24 procure by contract, to the extent funds are available, the

25 temporary or intermittent services of experts or consult-
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1 ants pursuant to section 3109 of title 5, United States

2 Code. The Commission shall give public notice of any such

3 contract before entering into such contract.

4 (k) AUTHORIZATION OF APPROPRIATIONS.—There

5 are authorized to be appropriated to the Commission

6 $1,250,000 for fiscal year 1996 to carry out its respon7 sibilities under this subtitle, to remain available until De8 cember 31, 1996.

9 (l) TERMINATION.—The Commission shall terminate

10 December 31, 1996.

11 SEC. 2603. DEPARTMENT AND AGENCY COOPERATION.

12 All Federal agencies and employees of all Federal

13 agencies shall cooperate fully with all requests for infor14 mation from the Commission and shall respond to any

15 such request for information within 30 days or such other

16 time as is agreed upon by the requesting and requested

17 persons.

18 SEC. 2604. HEARINGS.

19 The Commission shall hold such hearings as it con20 siders appropriate. The Chairman of the Commission shall

21 designate a member of the Commission to preside at any

22 hearing in the absence of the Chairman.
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1 SEC. 2605. COMMISSION PROCEDURES.

2 (a) STARTUP.—The Commission may conduct busi3 ness at any time after at least 6 of its members have been

4 appointed in accordance with section 2602.

5 (b) VOTING.—A majority of those members of the

6 Commission who have been appointed in accordance with

7 section 2602 shall constitute a quorum for purposes of

8 conducting Commission business. Any recommendation of

9 the Commission shall require an affirmative vote of a ma10 jority of Commission members who have been appointed

11 in accordance with section 2602. Members of the Commis12 sion may not vote by proxy.

13 SEC. 2606. FRAMEWORK FOR THE FEDERAL GOVERNMENT

14 IN THE 21ST CENTURY.

15 (a) ANALYSIS OF CURRENT FEDERAL FUNCTIONS.—

16 The Commission shall conduct a comprehensive review of

17 the functions currently performed by the Federal Govern18 ment, and shall analyze each such function under the fol19 lowing criteria:

20 (1) Does the function have clearly defined mis21 sions and objectives.

22 (2) Do those missions and objectives serve a

23 currently valid and important Federal role, including

24 analysis of whether—

25 (A) there is a need for governmental ac26 tion;
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1 (B) the Federal Government has exclusive

2 constitutional authority to perform the function;

3 (C) the Federal Government is otherwise

4 uniquely positioned to perform the function;

5 and

6 (D) there is a clear need for or advantage

7 to performing the function at the Federal level

8 versus at the State or local level.

9 (3) Does the current Federal role constitute the

10 most effective and efficient means of achieving the

11 objectives of the function.

12 (4) Does the current Federal role constitute the

13 least intrusive means of achieving the objectives with

14 respect to individual liberty and principles of Fed15 eralism.

16 (5) Is there a need to enhance Federal perform17 ance of the function, including analysis of whether—

18 (A) the Federal Government requires

19 greater resources or authority to perform that

20 function;

21 (B) there are other ways of consolidating

22 Federal resources and activities directed to the

23 function; and
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1 (C) there are opportunities for participa2 tion by the private sector or other levels of gov3 ernment.

4 (b) COMMISSION REPORTS AND RECOMMENDA5 TIONS.—

6 (1) IN GENERAL.—The Commission shall pre7 pare and submit to the Congress a report or reports

8 on the results of its analysis. Each report shall be

9 made public and shall include—

10 (A) the Commission’s findings and conclu11 sions;

12 (B) the Commission’s recommendations for

13 the restructuring or termination of current

14 functions;

15 (C) the reasons for such findings, conclu16 sions, and recommendations; and

17 (D) a complete description of the Commis18 sion’s deliberations, including a discussion of

19 any major points on which the members had

20 significant disagreements.

21 (2) REPORT ON MATTERS OF HIGHEST PRIOR22 ITY.—Not later than July 31, 1996, the Commission

23 shall submit a report containing those findings, con24 clusions, and recommendations that the Commission

25 considers to be of highest priority.
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1 (3) ADDITIONAL REPORTS.—The Commission

2 may submit such additional reports under this sec3 tion as it considers appropriate, and at such times

4 on or before December 31, 1996, as it considers ap5 propriate.

6 SEC. 2607. PROPOSAL FOR REORGANIZING THE EXECUTIVE

7 BRANCH.

8 (a) IN GENERAL.—The Commission shall—

9 (1) examine all significant issues related to the

10 organization of the executive branch of the Federal

11 Government; and

12 (2) develop organizational recommendations to

13 eliminate duplication, reduce costs, streamline oper14 ations, and improve performance and accountability

15 in Federal departments and agencies.

16 (b) LEGISLATIVE PROPOSAL.—The recommendations

17 of the Commission under this section shall be encompassed

18 in a single legislative proposal under section 2608 which

19 implements a comprehensive reorganization and restruc20 turing plan for the executive branch and which addresses,

21 among other issues, the following:

22 (1) Whether the Federal Government should in23 clude fewer departments, each with clear, specific

24 missions and goals, and if so, what those depart25 ments should be.
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1 (2) Whether and how to ensure that similar

2 functions of Government, such as statistical, science,

3 or trade functions, are consolidated within a single

4 department or agency.

5 (3) Whether and how significant common ad6 ministrative functions should be consolidated within

7 one executive organization.

8 (4) Whether a single department-level office

9 should be designated with responsibility for rep10 resentation and oversight within the White House of

11 all independent agencies of the executive branch.

12 (5) Whether and how a streamlined hierarchical

13 structure can be provided within each department

14 and agency.

15 (c) OTHER RECOMMENDATIONS.—The Commission

16 may also make additional recommendations which it deter17 mines will enhance the operational effectiveness of the or18 ganizational recommendations. Such recommendations

19 shall not be included in any draft implementation bill to

20 be considered under section 2609, but may be submitted

21 separately to the Congress.

22 SEC. 2608. PROCEDURES FOR MAKING RECOMMENDA23 TIONS.

24 (a) COMMISSION REPORT.—No later than December

25 31, 1996, the Commission shall prepare and submit to the
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1 Congress a single report, which shall be made public, and

2 which shall include—

3 (1) a description of the Commission’s findings

4 and recommendations pursuant to section 2607;

5 (2) the reasons for such recommendations; and

6 (3) a single proposal consisting of draft legisla7 tion to implement those recommendations for which

8 legislation is appropriate.

9 (b) REVIEW AND COMMENT BY THE PRESIDENT.—

10 No later than March 31, 1997, the President shall submit

11 to the Congress an evaluation of the Commission’s report

12 under this section, together with any recommendations

13 that the President considers appropriate.

14 SEC. 2609. CONGRESSIONAL CONSIDERATION OF REFORM

15 PROPOSALS.

16 (a) DEFINITIONS.—For purposes of this section—

17 (1) the term ‘‘implementation bill’’ means only

18 a bill which is introduced as provided under sub19 section (b), and consists of the draft legislation con20 tained in the report submitted to Congress under

21 section 2608; and

22 (2) the term ‘‘calendar day of session’’ means

23 a calendar day other than one on which either

24 House is not in session because of an adjournment

25 of more than 3 days to a date certain.
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1 (b) INTRODUCTION, REFERRAL, AND REPORT OR

2 DISCHARGE.—

3 (1) INTRODUCTION.—On the first calendar day

4 of session on which both Houses are in session im5 mediately following April 15, 1997, a bill consisting

6 of the draft legislation contained in the report sub7 mitted to Congress under section 2608 shall be in8 troduced (by request)—

9 (A) in the Senate by the majority leader or

10 by any Member designated by the majority

11 leader; and

12 (B) in the House of Representatives by the

13 majority leader or by any Member designated

14 by the majority.

15 If such a bill is not introduced in either House as

16 provided in the preceding session within 3 calendar

17 days of session after such first calendar day of ses18 sion, then any Member of that House may introduce

19 such a bill.

20 (2) REFERRAL.—The implementation bill intro21 duced in the Senate under paragraph (1) shall be re22 ferred concurrently to the Committee on Govern23 mental Affairs of the Senate and other committees

24 with jurisdiction.
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1 (3) REPORT OR DISCHARGE.—If any committee

2 to which an implementation bill is referred has not

3 reported such bill by the end of the 15th calendar

4 day of session after the date of introduction of such

5 bill, such committee shall be immediately discharged

6 from further consideration of such bill, and upon

7 being reported or discharged from all committees,

8 such bill shall be placed on the appropriate calendar

9 of the House involved.

10 (c) PROCEDURES FOR CONSIDERATION BY THE SEN11 ATE.—

12 (1) IN GENERAL.—On or after the second cal13 endar day of session after the date on which an im14 plementation bill is placed on the Senate calendar,

15 it is in order (even though a previous motion to the

16 same effect has been disagreed to) for any Senator

17 to move to proceed to the consideration of the imple18 mentation bill (but only on the day after the cal19 endar day of session on which such Senator an20 nounces on the floor of the Senate the Senator’s in21 tention to do so). All points of order against the im22 plementation bill (and against consideration of the

23 implementation bill) are waived. The motion is privi24 leged and is not debatable. The motion is not subject

25 to amendment, or to a motion to postpone, or to a
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1 motion to proceed to the consideration of other busi2 ness. A motion to reconsider the vote by which the

3 motion is agreed to or disagreed to shall not be in

4 order. If a motion to proceed to the consideration of

5 the implementation bill is agreed to, the Senate shall

6 immediately proceed to consideration of the imple7 mentation bill without intervening motion, order, or

8 other business, and the implementation bill shall re9 main the unfinished business of the Senate until dis10 posed of.

11 (2) DEBATE.—Debate on the implementation

12 bill, and on all debatable motions and appeals in

13 connection therewith, shall be limited to not more

14 than 10 hours, which shall be divided equally be15 tween the majority leader and the minority leader or

16 their designees. An amendment to the implementa17 tion bill is not in order. A motion further to limit

18 debate is in order and not debatable. A motion to

19 postpone, or a motion to proceed to the consider20 ation of other business, or a motion to recommit the

21 implementation bill is not in order. A motion to re22 consider the vote by which the implementation bill is

23 agreed to or disagreed to is not in order.

24 (3) MOTION TO SUSPEND OR WAIVE APPLICA25 TION.—No motion to suspend or waive the applica-
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1 tion of this subsection shall be in order, except by

2 unanimous consent.

3 (4) APPEALS FROM CHAIR.—Appeals from the

4 decisions of the Chair relating to the application of

5 the rules of the Senate to the procedure relating to

6 an implementation bill shall be decided without de7 bate.

8 (5) FINAL PASSAGE.—Immediately following

9 the conclusion of the debate on an implementation

10 bill and a single quorum call at the conclusion of the

11 debate if requested in accordance with the rules of

12 the Senate, the vote on final passage of the imple13 mentation bill shall occur.

14 (d) CONSIDERATION BY OTHER HOUSE.—

15 (1) IN GENERAL.—If, before the passage by the

16 Senate of an implementation bill, the Senate receives

17 from the House of Representatives an implementa18 tion bill, then the following procedures shall apply:

19 (A) The implementation bill of the House

20 of Representatives shall not be referred to a

21 committee and may not be considered in the

22 Senate except in the case of final passage as

23 provided in subparagraph (B)(ii).

24 (B) With respect to an implementation bill

25 of the Senate—
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1 (i) the procedure in the Senate shall

2 be the same as if no implementation bill

3 had been received from the House of Rep4 resentatives; but

5 (ii) the vote on final passage shall be

6 on the implementation bill of the House of

7 Representatives.

8 (2) FINAL DISPOSITION.—Upon disposition of

9 the implementation bill received from the House of

10 Representatives, it shall no longer be in order to

11 consider the implementation bill that originated in

12 the Senate.

13 (f) RULES OF THE SENATE AND HOUSE.—This sec14 tion is enacted by Congress—

15 (1) as an exercise of the rulemaking power of

16 the Senate and House of Representatives, respec17 tively, and as such it is deemed a part of the rules

18 of each House, respectively, but applicable only with

19 respect to the procedure to be followed in that

20 House in the case of an implementation bill, and it

21 supersedes other rules only to the extent that it is

22 inconsistent with such rules; and

23 (2) with full recognition of the constitutional

24 right of either House to change its rules (so far as

25 relating to the procedure of that House) at any time,
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1 in the same manner, and to the same extent as in

2 the case of any other rule of that House.

3 SEC. 2610. DISTRIBUTION OF ASSETS.

4 Any proceeds from the sale of assets of any depart5 ment or agency resulting from the enactment of an imple6 mentation bill under section 2609 shall be—

7 (1) applied to reduce the Federal deficit; and

8 (2) deposited in the Treasury and treated as

9 general receipts.

10 SEC. 2611. AGENCY DEFINED.

11 For purposes of this subtitle, the term ‘‘agency’’

12 means each authority of the Federal Government, includ13 ing all departments, independent agencies, government14 sponsored enterprises, and Government corporations, ex15 cept the legislative branch, judicial branch, the govern16 ments of the territories or possessions of the United

17 States, or the District of Columbia.
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1 TITLE III—REGULATORY

2 REFORM

3 SEC. 3001. SHORT TITLE.

4 This title may be cited as the ‘‘Comprehensive Regu5 latory Reform Act of 1995’’.

6 SEC. 3002. ANALYSIS OF AGENCY RULES.

7 (a) IN GENERAL.—(1) Section 551 of title 5, United

8 States Code, is amended by striking ‘‘and’’ at the end of

9 paragraph (13), by striking the period at the end of para10 graph (14) and inserting a semicolon, and by adding at

11 the end the following:

12 ‘‘(15) ‘major rule’ means any rule subject to

13 section 553(c) that is likely to result in—

14 ‘‘(A) an annual effect on the economy of

15 $100,000,000 or more;

16 ‘‘(B) a major increase in costs or prices for

17 consumers, individual industries, Federal,

18 State, or local government agencies, or geo19 graphic regions, or

20 ‘‘(C) significant adverse effects on competi21 tion, employment, investment, productivity, in-
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1 novation, or on the ability of United States-based

2 enterprises to compete with foreign-based enterprises

3 in domestic and export markets;

4 ‘‘(16) ‘Director’ means the Director of the Of5 fice of Management and Budget;

6 ‘‘(17) ‘cost’ means the reasonably identifiable

7 significant adverse effects, quantifiable and

8 nonquantifiable, including social, environmental,

9 health, and economic effects that are expected to re10 sult directly or indirectly from implementation of a

11 rule or other agency action;

12 ‘‘(18) ‘cost-benefit analysis’ means an evalua13 tion of the costs and benefits of a rule, quantified

14 to the extent feasible and appropriate and otherwise

15 qualitatively described, that is prepared in accord16 ance with the requirements of this subchapter at the

17 level of detail appropriate and practicable for rea18 soned decision making on the matter involved, tak19 ing into consideration the significance and complex20 ity of the decision and any need for expedition; and

21 ‘‘(19) ‘reasonable alternatives’ means the range

22 of reasonable regulatory options that the agency has

23 authority to consider under the statute granting

24 rulemaking authority, including flexible regulatory
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1 options, unless precluded by the statute granting the

2 rulemaking authority.’’.

3 (2) Section 553 of title 5, United States Code, is

4 amended by adding at the end the following:

5 ‘‘(f)(1) Each agency shall for a proposed major rule

6 publish in the Federal Register, at least 90 days before

7 the date of publication of the general notice required

8 under subsection (b), a notice of intent to engage in rule9 making.

10 ‘‘(2) A notice under paragraph (1) for a proposed

11 major rule shall include, to the extent possible, the infor12 mation required to be included in a regulatory impact

13 analysis for the rule under subsection (i)(4)(B) and (D).

14 ‘‘(3) For a major rule proposed by an agency, the

15 head of the agency shall include in a general notice under

16 subsection (b), a preliminary regulatory impact analysis

17 for the rule prepared in accordance with subsection (i).

18 ‘‘(4) For a final major rule, the agency shall include

19 with the statement of basis and purpose—

20 ‘‘(A) a summary of a final regulatory impact

21 analysis of the rule in accordance with subsection

22 (i); and

23 ‘‘(B) a clear delineation of all changes in the in24 formation included in the final regulatory impact

25 analysis under subsection (i) from any such informa-
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1 tion that was included in the notice for the rule

2 under subsection (b).

3 The agency shall provide the complete text of a final regu4 latory impact analysis upon request.

5 ‘‘(5) The issuance of a notice of intent to engage in

6 rulemaking under paragraph (1) and the issuance of a

7 preliminary regulatory impact analysis under paragraph

8 (3) shall not be considered final agency action for pur9 poses of section 704.

10 ‘‘(6) In a rulemaking involving a major rule, the

11 agency conducting the rulemaking shall make a written

12 record describing the subject of all contacts the agency

13 made with persons outside the agency relating to such

14 rulemaking. If the contact was made with a non-govern15 mental person, the written record of such contact shall be

16 made available, upon request to the public.’’.

17 (3)(A) HEARING REQUIREMENT.—Section 553 of

18 title 5, United States Code, is further amended by adding

19 after subsection (f) the following:

20 ‘‘(g) If more than 100 interested persons acting indi21 vidually submit requests for a hearing to an agency re22 garding any major rule proposed by the agency, the agen23 cy shall hold such a hearing on the proposed rule.’’.
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1 (B) EXTENSION OF COMMENT PERIOD.—Section

2 553 of title 5, United States Code is further amended by

3 adding after subsection (g) the following:

4 ‘‘(h) If during the 90-day period beginning on the

5 date of publication of a notice under subsection (f) for a

6 proposed major rule, or if during the period beginning on

7 the date of publication or service of notice required by sub8 section (b) for a proposed major rule, more than 100 per9 sons individually contact the agency to request an exten10 sion of the period for making submissions under sub11 section (c) pursuant to the notice, the agency—

12 ‘‘(1) shall provide an additional 30-day period

13 for making those submissions; and

14 ‘‘(2) may not adopt the rule until after the ad15 ditional period.’’.

16 (C) RESPONSE TO COMMENTS.—Section 553(c) of

17 title 5, United States Code, is amended—

18 (i) by inserting ‘‘(1)’’ after ‘‘(c)’’; and

19 (ii) by adding at the end the following:

20 ‘‘(2) Each agency shall publish in the Federal Reg21 ister, with each rule published under section 552(a)(1)(D),

22 responses to the substance of the comments received by

23 the agency regarding the rule.’’.

24 (4) Section 553 of title 5, United States Code, is fur25 ther amended by adding after subsection (h) the following:
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1 ‘‘(i)(1) Each agency shall, in connection with every

2 major rule, prepare, and, to the extent permitted by law,

3 consider, a regulatory impact analysis. Such analysis may

4 be combined with any regulatory flexibility analysis per5 formed under sections 603 and 604.

6 ‘‘(2) Each agency shall initially determine whether a

7 rule it intends to propose or issue is a major rule. The

8 Director shall have authority to order a rule to be treated

9 as a major rule and to require any set of related rules

10 to be considered together as a major rule.

11 ‘‘(3) Except as provided in subsection (j), agencies

12 shall prepare—

13 ‘‘(A) a preliminary regulatory impact analysis,

14 which shall be transmitted, along with a notice of

15 proposed rulemaking, to the Director at least 60

16 days prior to the publication of notice of proposed

17 rulemaking, and

18 ‘‘(B) a final regulatory impact analysis, which

19 shall be transmitted along with the final rule at least

20 30 days prior to the publication of a major rule.

21 ‘‘(4) Each preliminary and final regulatory impact

22 analysis shall contain the following information:

23 ‘‘(A) A description of the potential benefits of

24 the rule, including any beneficial effects that cannot
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1 be quantified in monetary terms and the identifica2 tion of those likely to receive the benefits.

3 ‘‘(B) An explanation of the necessity, legal au4 thority, and reasonableness of the rule and a de5 scription of the condition that the rule is to address.

6 ‘‘(C) A description of the potential costs of the

7 rule, including any adverse effects that cannot be

8 quantified in monetary terms, and the identification

9 of those likely to bear the costs.

10 ‘‘(D) An analysis of alternative approaches, in11 cluding market based mechanisms or other flexible

12 regulatory options that could substantially achieve

13 the same regulatory goal at a lower cost and an ex14 planation of the reasons why such alternative ap15 proaches were not adopted, together with a dem16 onstration that the rule provides for the least costly

17 approach.

18 ‘‘(E) A statement that the rule does not conflict

19 with, or duplicate, any other rule or a statement of

20 the reasons why such a conflict or duplication exists.

21 ‘‘(F) A statement of whether the rule will re22 quire on-site inspections or whether persons will be

23 required by the rule to maintain any records which

24 will be subject to inspection, and a statement of

25 whether the rule will require persons to obtain li-
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1 censes, permits, or other certifications, including

2 specification of any associated fees or fines.

3 ‘‘(G) An estimate of the costs to the agency for

4 implementation and enforcement of the rule and of

5 whether the agency can be reasonably expected to

6 implement the rule with the current level of appro7 priations.

8 ‘‘(5)(A) the Director is authorized to review and pre9 pare comments on any preliminary or final regulatory im10 pact analysis, notice of proposed rulemaking, or final rule

11 based on the requirements of this subsection.

12 ‘‘(B) Upon the request of the Director, an agency

13 shall consult with the Director concerning the review of

14 a preliminary impact analysis or notice of proposed rule15 making and shall refrain from publishing its preliminary

16 regulatory impact analysis or notice of proposed rule17 making until such review is concluded. The Director’s re18 view may not take longer than 90 days after the date of

19 the request of the Director.

20 ‘‘(6)(A) An agency may not adopt a major rule unless

21 the final regulatory impact analysis for the rule is ap22 proved or commented upon in writing by the Director or

23 by an individual designated by the Director for that pur24 pose.
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1 ‘‘(B) Upon receiving notice that the Director intends

2 to comment in writing with respect to any final regulatory

3 impact analysis or final rule, the agency shall refrain from

4 publishing its final regulatory impact analysis or final rule

5 until the agency has responded to the Director’s comments

6 and incorporated those comments in the agency’s response

7 in the rulemaking file.

8 ‘‘(7)(A) Except as provided in subparagrph (B), no

9 final major rule subject to this section shall be promul10 gated unless the agency head publishes in the Federal

11 Register a finding that—

12 ’’(i) the benefits of the rule justify the costs of

13 the rule; and

14 ‘‘(ii) the rule employs to the extent practicable

15 flexible alternatives as set forth in paragraph (4)(D)

16 and adopts the reasonable alternative which has the

17 greater net benefits and achieves the objectives of

18 the statute.

19 ‘‘(B) If, applying the statutory requirements upon

20 which the rule is based, a rule cannot satisfy the criteria

21 of subparagraph (A), the agency head may promulgate the

22 rule if the agency head finds that—

23 ‘‘(i) the rule employs to the extent practicable

24 flexible reasonable alternatives of the type described

25 in paragraph (4)(D); and
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1 ‘‘(ii) the rule adopts the alternative with the

2 least net cost of the reasonable alternatives that

3 achieve the objectives of the statute.

4 ‘‘(8) Notwithstanding section 551(16), for purposes

5 of this subsection with regard to any rule proposed or is6 sued by an appropriate Federal banking agency (as that

7 term is defined in section 3(q) of the Federal Deposit In8 surance Act (12 U.S.C. 1813(q)), the National Credit

9 Union Administration, or the Office of Federal Housing

10 Enterprise Oversight, the term ‘Director’ means the head

11 of such agency, Administration, or Office.’’.

12 (5) Section 553 of title 5, United States Code, is fur13 ther amended by adding after subsection (i) the following:

14 ‘‘(j) To the extent practicable, the head of an agency

15 shall seek to ensure that any proposed major rule or regu16 latory impact analysis of such a rule is written in a reason17 ably simple and understandable manner and provides ade18 quate notice of the content of the rule to affected per19 sons.’’.

20 (6) Section 553 of title 5, United States Code, is fur21 ther amended by adding after subsection (j) the following:

22 ‘‘(k)(1) The provisions of this section regarding

23 major rules shall not apply if—

24 ‘‘(A) the agency for good cause finds that con25 ducting cost-benefit analysis is impracticable due to
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1 an emergency, or health or safety threat, or a food

2 safety threat that is likely to result in significant

3 harm to the public or natural resources; and

4 ‘‘(B) the agency publishes in the Federal Reg5 ister, together with such finding, a succinct state6 ment of the basis for the finding.

7 ‘‘(2) Not later than one year after the promulgation

8 of a final major rule to which paragraph (1) applies, the

9 agency shall comply with the provisions of this subchapter

10 and, as thereafter necessary, revise the rule.

11 (7) Section 553 of title 5, United States Code, is fur12 ther amended by adding after subsection (k) the following:

13 ‘‘(l) The provisions of this section regarding major

14 rules shall not apply to—

15 ‘‘(1) any regulation proposed or issued in con16 nection with the implementation of monetary policy

17 or to ensure the safety and soundness of federally

18 insured depository institutions, any affiliate of such

19 institution, credit unions, or government sponsored

20 housing enterprises regulated by the Office of Fed21 eral Housing Enterprise Oversight;

22 ‘‘(2) any agency action that the head of the

23 agency certifies is limited to interpreting, implement24 ing, or administering the internal revenue laws of

25 the United States, including any regulation proposed
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1 or issued in connection with ensuring the collection

2 of taxes from a subsidiary of a foreign company

3 doing business in the United States; and

4 ‘‘(3) any regulation proposed or issued pursu5 ant to section 553 of title 5, United States Code, in

6 connection with imposing trade sanctions against

7 any country that engages in illegal trade activities

8 against the United States that are injurious to

9 American technology, jobs, pensions, or general eco10 nomic well-being.’’.

11 (8) The Director of the Office of Management and

12 Budget shall submit a report to the Congress no later than

13 24 months after the date of the enactment of this Act con14 taining an analysis of rulemaking procedures of Federal

15 agencies and an analysis of the impact of those rule16 making procedures on the regulated public and regulatory

17 process.

18 (9) The amendments made by this subsection shall

19 apply only to final agency rules issued after rulemaking

20 begun after the date of enactment of this Act.

21 SEC. 3003. RISK ASSESSMENT.

22 (a) IN GENERAL.—Chapter 6 of title 5, United

23 States Code, is amended by adding at the end the follow24 ing:
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1 ‘‘SUBCHAPTER III—RISK ASSESSMENTS

2 ‘‘§ 631. Short title

3 ‘‘This subchapter may be cited as the ‘Risk Assess4 ment and Communication Act of 1995’.

5 ‘‘§ 632. Purposes

6 ‘‘The purposes of this subchapter are—

7 ‘‘(1) to present the public and executive branch

8 with the most scientifically objective and unbiased

9 information concerning the nature and magnitude of

10 health, safety, and environmental risks in order to

11 provide for sound regulatory decisions and public

12 education;

13 ‘‘(2) to provide for full consideration and dis14 cussion of relevant data and potential methodologies;

15 ‘‘(3) to require explanation of significant

16 choices in the risk assessment process which will

17 allow for better peer review and public understand18 ing; and

19 ‘‘(4) to improve consistency within the executive

20 branch in preparing risk assessments and risk char21 acterizations.

22 ‘‘§ 633. Effective date; applicability; savings provi23 sions

24 ‘‘(a) EFFECTIVE DATE.—Except as otherwise specifi25 cally provided in this subchapter, the provisions of this
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1 subchapter shall take effect 18 months after the date of

2 enactment of this subchapter.

3 ‘‘(b) APPLICABILITY.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (3), this subchapter applies to all significant

6 risk assessment documents and significant risk char7 acterization documents, as defined in paragraph (2).

8 ‘‘(2) SIGNIFICANT RISK ASSESSMENT DOCU9 MENT OR SIGNIFICANT RISK CHARACTERIZATION

10 DOCUMENT.—(A) As used in this subchapter, the

11 terms ‘significant risk assessment document’ and

12 ‘significant risk characterization document’ include,

13 at a minimum, risk assessment documents or risk

14 characterization documents prepared by or on behalf

15 of a covered Federal agency in the implementation

16 of a regulatory program designed to protect human

17 health, safety, or the environment, used as a basis

18 for one of the items referred to in subparagraph (B),

19 and—

20 ‘‘(i) included by the agency in that item; or

21 ‘‘(ii) inserted by the agency in the adminis22 trative record for that item.

23 ‘‘(B) The items referred to in subparagraph (A)

24 are the following:
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1 ‘‘(i) Any proposed or final major rule, in2 cluding any analysis or certification under sub3 chapter II, promulgated as part of any Federal

4 regulatory program designed to protect human

5 health, safety, or the environment.

6 ‘‘(ii) Any proposed or final environmental

7 clean-up plan for a facility or Federal guidelines

8 for the issuance of any such plan. As used in

9 this clause, the term ‘environmental clean-up’

10 means a corrective action under the Solid

11 Waste Disposal Act, a removal or remedial ac12 tion under the Comprehensive Environmental

13 Response, Compensation, and Liability Act of

14 1980, and any other environmental restoration

15 and waste management carried out by or on be16 half of a covered Federal agency with respect to

17 any substance other than municipal waste.

18 ‘‘(iii) Any proposed or final permit condi19 tion placing a restriction on facility siting or

20 operation under Federal laws administered by

21 the Environmental Protection Agency or the

22 Department of the Interior. Nothing in this sec23 tion (iii) shall apply to the requirements of sec24 tion 404 of the Clean Water Act.

25 ‘‘(iv) Any report to Congress.
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1 ‘‘(v) Any regulatory action to place a sub2 stance on any official list of carcinogens or

3 toxic or hazardous substances or to place a new

4 health effects value on such list, including the

5 Integrated Risk Information System Database

6 maintained by the Environmental Protection

7 Agency.

8 ‘‘(vi) Any guidance, including protocols of

9 general applicability, establishing policy regard10 ing risk assessment or risk characterization.

11 ‘‘(C) The terms ‘significant risk assessment

12 document’ and ‘significant risk characterization doc13 ument’ shall also include the following:

14 ‘‘(i) Any such risk assessment and risk

15 characterization documents provided by a cov16 ered Federal agency to the public and which are

17 likely to result in an annual effect on the econ18 omy of $75,000,000 or more.

19 ‘‘(ii) Environmental restoration and waste

20 management carried out by or on behalf of the

21 Department of Defense with respect to any sub22 stance other than municipal waste.

23 ‘‘(D) Within 15 months after the date of the

24 enactment of this subchapter, each covered Federal

25 agency administering a regulatory program designed
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1 to protect human health, safety, or the environment

2 shall promulgate a rule establishing those additional

3 categories, if any, of risk assessment and risk char4 acterization documents prepared by or on behalf of

5 the covered Federal agency that the agency will con6 sider significant risk assessment documents or sig7 nificant risk characterization documents for pur8 poses of this subchapter. In establishing such cat9 egories, the head of the agency shall consider each

10 of the following:

11 ‘‘(i) The benefits of consistent compliance

12 by documents of the covered Federal agency in

13 the categories.

14 ‘‘(ii) The administrative burdens of includ15 ing documents in the categories.

16 ‘‘(iii) The need to make expeditious admin17 istrative decisions regarding documents in the

18 categories.

19 ‘‘(iv) The possible use of a risk assessment

20 or risk characterization in any compilation of

21 risk hazards or health or environmental effects

22 prepared by an agency and commonly made

23 available to, or used by, any Federal, State, or

24 local government agency.
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1 ‘‘(v) Such other factors as may be appro2 priate.

3 ‘‘(E)(i) Not later than 18 months after the date

4 of the enactment of this subchapter, the President,

5 acting through the Director of the Office of Manage6 ment and Budget, shall determine whether any other

7 Federal agencies should be considered covered Fed8 eral agencies for purposes of this subchapter. Such

9 determination, with respect to a particular Federal

10 agency, shall be based on the impact of risk assess11 ment documents and risk characterization docu12 ments on—

13 ‘‘(I) regulatory programs administered by

14 that agency; and

15 ‘‘(II) the communication of risk informa16 tion by that agency to the public.

17 The effective date of such a determination shall be

18 no later than 6 months after the date of the deter19 mination.

20 ‘‘(ii) Not later than 15 months after the Presi21 dent, acting through the Director of the Office of

22 Management and Budget, determines pursuant to

23 clause (i) that a Federal agency should be consid24 ered a covered Federal agency for purposes of this

25 subchapter, the head of that agency shall promul-
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1 gate a rule pursuant to subparagraph (D) to estab2 lish additional categories of risk assessment and risk

3 characterization documents described in that sub4 paragraph.

5 ‘‘(3) EXCEPTIONS.—(A) This subchapter does

6 not apply to risk assessment or risk characterization

7 documents containing risk assessments or risk char8 acterizations performed with respect to the follow9 ing:

10 ‘‘(i) A screening analysis, where appro11 priately labeled as such, including a screening

12 analysis for purposes of product regulation or

13 premanufacturing notices.

14 ‘‘(ii) Any health, safety, or environmental

15 inspections.

16 ‘‘(iii) The sale or lease of Federal re17 sources or regulatory activities that directly re18 sult in the collection of Federal receipts.

19 ‘‘(B) No analysis shall be treated as a screening

20 analysis for purposes of subparagraph (A) if the re21 sults of such analysis are used as the basis for im22 posing restrictions on substances or activities.

23 ‘‘(C) The risk assessment principle set forth in

24 this 634(b)(1) need not apply to any risk assessment

25 or risk characterization document described in
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1 clause (iii) of paragraph (2)(B). The risk character2 ization and communication principle set forth in sec3 tion 635(4) need not apply to any risk assessment

4 or risk characterization document described in

5 clause (v) or (vi) of paragraph (2)(B).

6 ‘‘(c) SAVINGS PROVISIONS.—The provisions of this

7 subchapter shall be supplemental to any other provisions

8 of law relating to risk assessments and risk characteriza9 tions, except that nothing in this subchapter shall be con10 strued to modify any statutory standard or statutory re11 quirement designed to protect health, safety, or the envi12 ronment. Nothing in this subchapter shall be interpreted

13 to preclude the consideration of any data or the calculation

14 of any estimate to more fully describe risk or provide ex15 amples of scientific uncertainty or variability. Nothing in

16 this subchapter shall be construed to require the disclosure

17 of any trade secret or other confidential information.

18 ‘‘§ 634. Principles for risk assessment

19 ‘‘(a) IN GENERAL.—The head of each covered Fed20 eral agency shall apply the principles set forth in sub21 section (b) in order to assure that significant risk assess22 ment documents and all of their components distinguish

23 scientific findings from other considerations and are, to

24 the extent feasible, scientifically objective, unbiased, and

25 inclusive of all relevant data and rely, to the extent avail-
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1 able and practicable, on scientific findings. Discussions or

2 explanations required under this section need not be re3 peated in each risk assessment document as long as there

4 is a reference to the relevant discussion or explanation in

5 another agency document which is available to the public.

6 ‘‘(b) PRINCIPLES.—The principles to be applied are

7 as follows:

8 ‘‘(1) When discussing human health risks, a

9 significant risk assessment document shall contain a

10 discussion of both relevant laboratory and relevant

11 epidemiological data of sufficient quality which finds,

12 or fails to find, a correlation between health risks

13 and a potential toxin or activity. Where conflicts

14 among such data appear to exist, or where animal

15 data is used as a basis to assess human health, the

16 significant risk assessment document shall, to the

17 extent feasible and appropriate, include discussion of

18 possible reconciliation of conflicting information, and

19 as relevant, differences in study designs, compara20 tive physiology, routes of exposure, bioavailability,

21 pharmacokinetics, and any other relevant factor, in22 cluding the sufficiency of basic data for review. The

23 discussion of possible reconciliation should indicate

24 whether there is a biological basis to assume a re-
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1 sulting harm in humans. Animal data shall be re2 viewed with regard to its relevancy to humans.

3 ‘‘(2) Where a significant risk assessment docu4 ment involves selection of any significant assump5 tion, inference, or model, the document shall, to the

6 extent feasible—

7 ‘‘(A) present a representative list and ex8 planation of plausible and alternative assump9 tions, inferences, or models;

10 ‘‘(B) explain the basis for any choices;

11 ‘‘(C) identify any policy or value judg12 ments;

13 ‘‘(D) fully describe any model used in the

14 risk assessment and make explicit the assump15 tions incorporated in the model; and

16 ‘‘(E) indicate the extent to which any sig17 nificant model has been validated by, or con18 flicts with, empirical data.

19 ‘‘§ 635. Principles for risk characterization and com20 munication

21 ‘‘Each significant risk characterization document

22 shall meet each of the following requirements:

23 ‘‘(1) ESTIMATES OF RISK.—The risk character24 ization shall describe the populations or natural re25 sources which are the subject of the risk character-
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1 ization. If a numerical estimate of risk is provided,

2 the agency shall, to the extent feasible, provide—

3 ‘‘(A) the best estimate or estimates for the

4 specific populations or natural resources which

5 are the subject of the characterization (based

6 on the information available to the Federal

7 agency); and

8 ‘‘(B) a statement of the reasonable range

9 of scientific uncertainties.

10 In addition to such best estimate or estimates, the

11 risk characterization document may present plau12 sible upper-bound or conservative estimates in con13 junction with plausible lower bound estimates.

14 Where appropriate, the risk characterization docu15 ment may present, in lieu of a single best estimate,

16 multiple best estimates based on assumptions, infer17 ences, or models which are equally plausible, given

18 current scientific understanding. To the extent prac19 tical and appropriate, the document shall provide de20 scriptions of the distribution and probability of risk

21 estimates to reflect differences in exposure varia22 bility or sensitivity in populations and attendant un23 certainties. Sensitive subpopulations or highly ex24 posed subpopulations include, where relevant and
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1 appropriate, children, the elderly, pregnant women,

2 and disabled persons.

3 ‘‘(2) EXPOSURE SCENARIOS.—The risk charac4 terization document shall explain the exposure sce5 narios used in any risk assessment, and, to the ex6 tent feasible, provide a statement of the size of the

7 corresponding population at risk and the likelihood

8 of such exposure scenarios.

9 ‘‘(3) COMPARISONS.—The document shall con10 tain a statement that places the nature and mag11 nitude of risks to human health, safety, or the envi12 ronment in context. Such statement shall, to the ex13 tent feasible, provide comparisons with estimates of

14 greater, lesser, and substantially equivalent risks

15 that are familiar to and routinely encountered by the

16 general public as well as other risks, and, where ap17 propriate and meaningful, comparisons of those risks

18 with other similar risks regulated by the Federal

19 agency resulting from comparable activities and ex20 posure pathways. Such comparisons should consider

21 relevant distinctions among risks, such as the vol22 untary or involuntary nature of risks and the pre23 ventability or nonpreventability of risks.

24 ‘‘(4) SUBSTITUTION RISKS.—Each significant

25 risk assessment or risk characterization document
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1 shall include a statement of any significant substi2 tution risks to human health, where information on

3 such risks has been provided to the agency.

4 ‘‘(5) SUMMARIES OF OTHER RISK ESTI5 MATES.—If—

6 ‘‘(A) a commenter provides a covered Fed7 eral agency with a relevant risk assessment doc8 ument or a risk characterization document, and

9 a summary thereof, during a public comment

10 provided by the agency for a significant risk as11 sessment document or a significant risk charac12 terization document, or, where no comment pe13 riod is provided but a commenter provides the

14 covered Federal agency with the relevant risk

15 assessment document or risk characterization

16 document, and a summary thereof, in a timely

17 fashion, and

18 ‘‘(B) the risk assessment document or risk

19 characterization document is consistent with the

20 principles and the guidance provided under this

21 subchapter,

22 the agency shall, to the extent feasible, present such

23 summary in connection with the presentation of the

24 agency’s significant risk assessment document or

25 significant risk characterization document. Nothing
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1 in this paragraph shall be construed to limit the in2 clusion of any comments or material supplied by any

3 person to the administrative record of any proceed4 ing.

5 A document may satisfy the requirements of paragraph

6 (3), (4) or (5) by reference to information or material oth7 erwise available to the public if the document provides a

8 brief summary of such information or material.

9 ‘‘§ 636. Recommendations or classifications by a non10 United States-based entity

11 ‘‘No covered Federal agency shall automatically in12 corporate or adopt any recommendation or classification

13 made by a non-United States-based entity concerning the

14 health effects value of a substance without an opportunity

15 for notice and comment, and any risk assessment docu16 ment or risk characterization document adopted by a cov17 ered Federal agency on the basis of such a recommenda18 tion or classification shall comply with the provisions of

19 this subchapter. For the purposes of this section, the term

20 ‘non-United States-based entity’ means—

21 ‘‘(1) any foreign government and its agencies;

22 ‘‘(2) the United Nations or any of its subsidiary

23 organizations;

24 ‘‘(3) any other international governmental body

25 or international standards-making organization; or
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1 ‘‘(4) any other organization or private entity

2 without a place of business located in the United

3 States or its territories.

4 ‘‘§ 637. Guidelines and report

5 ‘‘(a) GUIDELINES.—Within 15 months after the date

6 of enactment of this subchapter, the President shall issue

7 guidelines for Federal agencies consistent with the risk as8 sessment and characterization principles set forth in sec9 tions 634 and 635 and shall provide a format for summa10 rizing risk assessment results. In addition, such guidelines

11 shall include guidance on at least the following subjects:

12 criteria for scaling animal studies to assess risks to human

13 health; use of different types of dose-response models;

14 thresholds; definitions, use, and interpretations of the

15 maximum tolerated dose; weighting of evidence with re16 spect to extrapolating human health risks from sensitive

17 species; evaluation of benign tumors, and evaluation of dif18 ferent human health endpoints.

19 ‘‘(b) REPORT.—Within 3 years after the date of the

20 enactment of this subchapter, each covered Federal agency

21 shall provide a report to the Congress evaluating the cat22 egories of policy and value judgments identified under sub23 paragraph (C) of section 634(b)(2).

24 ‘‘(c) PUBLIC COMMENT AND CONSULTATION.—The

25 guidelines and report under this section, shall be developed
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1 after notice and opportunity for public comment, and after

2 consultation with representatives of appropriate State,

3 local, and tribal governments, and such other departments

4 and agencies, offices, organizations, or persons as may be

5 advisable.

6 ‘‘(d) REVIEW.—The President shall review and,

7 where appropriate, revise the guidelines published under

8 this section at least every 4 years.

9 ‘‘§ 638. Research and training in risk assessment

10 ‘‘(a) EVALUATION.—The head of each covered agency

11 shall regularly and systematically evaluate risk assessment

12 research and training needs of the agency, including,

13 where relevant and appropriate, the following:

14 ‘‘(1) Research to reduce generic data gaps, to

15 address modelling needs (including improved model

16 sensitivity), and to validate default options, particu17 larly those common to multiple risk assessments.

18 ‘‘(2) Research leading to improvement of meth19 ods to quantify and communicate uncertainty and

20 variability among individuals, species, populations,

21 and, in the case of ecological risk assessment, eco22 logical communities.

23 ‘‘(3) Emerging and future areas of research, in24 cluding research on comparative risk analysis, expo25 sure to multiple chemicals and other stressors,
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1 noncancer endpoints, biological markers of exposure

2 and effect, mechanisms of action in both mammalian

3 and nonmammalian species, dynamics and prob4 abilities of physiological and ecosystem exposures,

5 and prediction of ecosystem-level responses.

6 ‘‘(4) Long-term needs to adequately train indi7 viduals in risk assessment and risk assessment appli8 cation. Evaluations under this paragraph shall in9 clude an estimate of the resources needed to provide

10 necessary training.

11 ‘‘(b) STRATEGY AND ACTIONS TO MEET IDENTIFIED

12 NEEDS.—The head of each covered agency shall develop

13 a strategy and schedule for carrying out research and

14 training to meet the needs identified in subsection (a).

15 ‘‘(c) REPORT.—Not later than 6 months after the

16 date of the enactment of this subchapter, the head of each

17 covered agency shall submit to the Congress a report on

18 the evaluations conducted under subsection ‘‘(a) and the

19 strategy and schedule developed under subsection ‘‘(b).

20 The head of each covered agency shall report to the Con21 gress periodically on the evaluations, strategy, and sched22 ule.

23 ‘‘§ 639. Study of comparative risk analysis

24 ‘‘(a) IN GENERAL.—(1) The Director of the Office

25 of Management and Budget, in consultation with the Of-
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1 fice of Science and Technology Policy, shall conduct, or

2 provide for the conduct of, a study using comparative risk

3 analysis to rank health, safety, and environmental risks

4 and to provide a common basis for evaluating strategies

5 for reducing or preventing those risks. The goal of the

6 study shall be to improve methods of comparative risk

7 analysis.

8 ‘‘(2) Not later than 90 days after the date of the en9 actment of this subchapter, the Director, in collaboration

10 with the heads of appropriate Federal agencies, shall enter

11 into a contract with the National Research Council to pro12 vide technical guidance on approaches to using compara13 tive risk analysis and other considerations in setting

14 health, safety, and environmental risk reduction priorities.

15 ‘‘(b) SCOPE OF STUDY.—The study shall have suffi16 cient scope and breadth to evaluate comparative risk anal17 ysis and to test approaches for improving comparative risk

18 analysis and its use in setting priorities for health, safety,

19 and environmental risk reduction. The study shall com20 pare and evaluate a range of diverse health, safety, and

21 environmental risks.

22 ‘‘(c) STUDY PARTICIPANTS.—In conducting the

23 study, the Director shall provide for the participation of

24 a range of individuals with varying backgrounds and ex-
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1 pertise, both technical and nontechnical, comprising broad

2 representation of the public and private sectors.

3 ‘‘(d) DURATION.—The study shall begin within 180

4 days after the date of the enactment of this subchapter

5 and terminate within 2 years after the date on which it

6 began.

7 ‘‘(e) RECOMMENDATIONS FOR IMPROVING COMPARA8 TIVE RISK ANALYSIS AND ITS USE.—Not later than 90

9 days after the termination of the study, the Director shall

10 submit to the Congress the report of the National Re11 search Council with recommendations regarding the use

12 of comparative risk analysis and ways to improve the use

13 of comparative risk analysis for decision-making in appro14 priate Federal agencies.

15 ‘‘§ 639a. Definitions

16 ‘‘For purposes of this subchapter:

17 ‘‘(1) RISK ASSESSMENT DOCUMENT.—The term

18 ‘risk assessment document’ means a document con19 taining the explanation of how hazards associated

20 with a substance, activity, or condition have been

21 identified, quantified, and assessed. The term also

22 includes a written statement accepting the findings

23 of any such document.

24 ‘‘(2) RISK CHARACTERIZATION DOCUMENT.—

25 The term ‘risk characterization document’ means a
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1 document quantifying or describing the degree of

2 toxicity, exposure, or other risk posed by hazards as3 sociated with a substance, activity, or condition to

4 which individuals, populations, or resources are ex5 posed. The term also includes a written statement

6 accepting the findings of any such document.

7 ‘‘(3) BEST ESTIMATE.—The term ‘best esti8 mate’ means a scientifically appropriate estimate

9 which is based, to the extent feasible, on one of the

10 following:

11 ‘‘(A) Central estimates of risk using the

12 most plausible assumptions.

13 ‘‘(B) An approach which combines multiple

14 estimates based on different scenarios and

15 weighs the probability of each scenario.

16 ‘‘(C) Any other methodology designed to

17 provide the most unbiased representation of the

18 most plausible level of risk, given the current

19 scientific information available to the Federal

20 agency concerned.

21 ‘‘(4) SUBSTITUTION RISK.—The term ‘substi22 tution risk’ means a potential risk to human health,

23 safety, or the environment from a regulatory alter24 native designed to decrease other risks.
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1 ‘‘(5) COVERED FEDERAL AGENCY.—The term

2 ‘covered Federal agency’ means each of the follow3 ing:

4 ‘‘(A) The Environmental Protection Agen5 cy.

6 ‘‘(B) The Occupational Safety and Health

7 Administration.

8 ‘‘(C) The Department of Transportation

9 (including the National Highway Transpor10 tation Safety Administration).

11 ‘‘(D) The Food and Drug Administration.

12 ‘‘(E) The Department of Energy.

13 ‘‘(F) The Department of the Interior.

14 ‘‘(G) The Department of Agriculture.

15 ‘‘(H) The Consumer Product Safety Com16 mission.

17 ‘‘(I) The National Oceanic and Atmos18 pheric Administration.

19 ‘‘(J) The United States Army Corps of

20 Engineers.

21 ‘‘(K) The Mine Safety and Health Admin22 istration.

23 ‘‘(L) The Nuclear Regulatory Commission.
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1 ‘‘(M) Any other Federal agency considered

2 a covered Federal agency pursuant to section

3 413(b)(2)(E).

4 ‘‘(6) FEDERAL AGENCY.—The term ‘Federal

5 agency’ means an executive department, military de6 partment, or independent establishment as defined

7 in part I of title 5 of the United States Code, except

8 that such term also includes the Office of Tech9 nology Assessment.

10 ‘‘(7) DOCUMENT.—The term ‘document’ in11 cludes material stored in electronic or digital form.

12 ‘‘§ 639b. Peer review program

13 ‘‘(a) ESTABLISHMENT.—For regulatory programs de14 signed to protect human health, safety, or the environ15 ment, the head of each Federal agency shall develop a sys16 tematic program for independent and external peer review

17 required by subsection (b). Such program shall be applica18 ble across the agency and—

19 ‘‘(1) shall provide for the creation of peer re20 view panels consisting of experts and shall be broad21 ly representative and balanced and to the extent rel22 evant and appropriate, may include representatives

23 of State, local, and tribal governments, small busi24 nesses, other representatives of industry, univer25 sities, agriculture, labor, consumers, conservation or-
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1 ganizations, or other public interest groups and or2 ganizations;

3 ‘‘(2) may provide for differing levels of peer re4 view and differing numbers of experts on peer review

5 panels, depending on the significance or the com6 plexity of the problems or the need for expeditious7 ness;

8 ‘‘(3) shall not exclude peer reviewers with sub9 stantial and relevant expertise merely because they

10 represent entities that may have a potential interest

11 in the outcome, provided that interest is fully dis12 closed to the agency and in the case of a regulatory

13 decision affecting a single entity, no peer reviewer

14 representing such entity may be included on the

15 panel;

16 ‘‘(4) may provide specific and reasonable dead17 lines for peer review panels to submit reports under

18 subsection (c); and

19 ‘‘(5) shall provide adequate protections for con20 fidential business information and trade secrets, in21 cluding requiring peer reviewers to enter into con22 fidentiality agreements.

23 ‘‘(b) REQUIREMENT FOR PEER REVIEW.—In connec24 tion with any rule that is likely to result in an annual

25 increase in costs of $100,000,000 or more (other than any
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1 rule or other action taken by an agency to authorize or

2 approve any individual substance or product), each Fed3 eral agency shall provide for peer review in accordance

4 with this section of any risk assessment or cost analysis

5 which forms the basis for such rule or of any analysis

6 under section 431(a). In addition, the Director of the Of7 fice of Management and Budget may order that peer re8 view be provided for any major risk assessment or cost

9 assessment that is likely to have a significant impact on

10 public policy decisions.

11 ‘‘(c) CONTENTS.—Each peer review under this sec12 tion shall include a report to the Federal agency concerned

13 with respect to the scientific and economic merit of data

14 and methods used for the assessments and analyses.

15 ‘‘(d) RESPONSE TO PEER REVIEW.—The head of the

16 Federal agency shall provide a written response to all sig17 nificant peer review comments.

18 ‘‘(e) AVAILABILITY TO PUBLIC.—All peer review

19 comments or conclusions and the agency’s responses shall

20 be made available to the public and shall be made part

21 of the administrative record.

22 ‘‘(f) PREVIOUSLY REVIEWED DATA AND ANALY23 SIS.—No peer review shall be required under this section

24 for any data or method which has been previously sub-
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1 jected to peer review or for any component of any analysis

2 or assessment previously subjected to peer review.

3 ‘‘(g) NATIONAL PANELS.—The President shall ap4 point National Peer Review Panels to annually review the

5 risk assessment and cost assessment practices of each

6 Federal agency for programs designed to protect human

7 health, safety, or the environment. The Panel shall submit

8 a report to the Congress no less frequently than annually

9 containing the results of such review.

10 ‘‘§ 639c. Petition for review of a major free-standing

11 risk assessment

12 ‘‘(a) Any interested person may petition an agency

13 to conduct a scientific review of a risk assessment con14 ducted or adopted by the agency, except for a risk assess15 ment used as the basis for a major rule or a site-specific

16 risk assessment.

17 ‘‘(b) The agency shall utilize external peer review, as

18 appropriate, to evaluate the claims and analyses in the pe19 tition, and shall consider such review in making its deter20 mination of whether to grant the petition.

21 ‘‘(c) The agency shall grant the petition if the peti22 tion establishes that there is a reasonable likelihood that—

23 ‘‘(1)(A) the risk assessment that is the subject

24 of the petition was carried out in a manner substan-
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1 tially inconsistent with the principles in section 633;

2 or

3 ‘‘(B) the risk assessment that is the subject of

4 the petition does not take into account material sig5 nificant new scientific data and scientific under6 standing;

7 ‘‘(2) the risk assessment that is the subject of

8 the petition contains significantly different results

9 than if it had been properly conducted pursuant to

10 subchapter III; and

11 ‘‘(3) a revised risk assessment will provide the

12 basis for reevaluating an agency determination of

13 risk, and such determination currently has an effect

14 on the United States economy equivalent to that of

15 major rule.

16 ‘‘(d) A decision to grant, or final action to deny, a

17 petition under this subsection shall be made not later than

18 180 days after the petition is submitted.

19 ‘‘(e) If the agency grants the petition, it shall com20 plete its review of the risk assessment not later than 1

21 year after its decision to grant the petition. If the agency

22 revises the risk assessment, in response to its review, it

23 shall do so in accordance with section 633.
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1 ‘‘§ 639d. Risk-based priorities

2 ‘‘(a) PURPOSES.—The purposes of this section are

3 to—

4 ‘‘(1) encourage Federal agencies engaged in

5 regulating risks to human health, safety, and the en6 vironment to achieve the greatest risk reduction at

7 the least cost practical;

8 ‘‘(2) promote the coordination of policies and

9 programs to reduce risks to human health, safety,

10 and the environment; and

11 ‘‘(3) promote open communication among Fed12 eral agencies, the public, the President, and Con13 gress regarding environmental, health, and safety

14 risks, and the prevention and management of those

15 risks.

16 ‘‘(b) DEFINITIONS.—For the purposes of this section:

17 ‘‘(1) COMPARATIVE RISK ANALYSIS.—The term

18 ‘comparative risk analysis’ means a process to sys19 tematically estimate, compare, and rank the size and

20 severity of risks to provide a common basis for eval21 uating strategies for reducing or preventing those

22 risks.

23 ‘‘(2) COVERED AGENCY.—The term ‘covered

24 agency’ means each of the following:

25 ‘‘(A) The Environmental Protection Agen26 cy.
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1 ‘‘(B) The Department of Labor.

2 ‘‘(C) The Department of Transportation.

3 ‘‘(D) The Food and Drug Administration.

4 ‘‘(E) The Department of Energy.

5 ‘‘(F) The Department of the Interior.

6 ‘‘(G) The Department of Agriculture.

7 ‘‘(H) The Consumer Product Safety Com8 mission.

9 ‘‘(I) The National Oceanic and Atmos10 pheric Administration.

11 ‘‘(J) The United States Army Corps of

12 Engineers.

13 ‘‘(K) The Nuclear Regulatory Commission.

14 ‘‘(3) EFFECT.—The term ‘effect’ means a dele15 terious change in the condition of—

16 ‘‘(A) a human or other living thing (includ17 ing death, cancer, or other chronic illness, de18 creased reproductive capacity, or disfigure19 ment); or

20 ‘‘(B) an inanimate thing important to

21 human welfare (including destruction, degenera22 tion, the loss of intended function, and in23 creased costs for maintenance).

24 ‘‘(4) IRREVERSIBILITY.—The term

25 ‘irreversibility’ means the extent to which a return
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1 to conditions before the occurrence of an effect are

2 either very slow or will never occur.

3 ‘‘(5) LIKELIHOOD.—The term ‘likelihood’

4 means the estimated probability that an effect will

5 occur.

6 ‘‘(6) MAGNITUDE.—The term ‘magnitude’

7 means the number of individuals or the quantity of

8 ecological resources or other resources that contrib9 ute to human welfare that are affected by exposure

10 to a stressor.

11 ‘‘(7) SERIOUSNESS.—The term ‘seriousness’

12 means the intensity of effect, the likelihood, the

13 irreversibility, and the magnitude.

14 ‘‘(c) DEPARTMENT AND AGENCY PROGRAM GOALS.—

15 ‘‘(1) SETTING PRIORITIES.—In exercising au16 thority under applicable laws protecting human

17 health, safety, or the environment, the head of each

18 covered agency shall set priorities for the use of re19 sources available under those laws to address those

20 risks to human health, safety, and the environment

21 that—

22 ‘‘(A) the covered agency determines to be

23 most serious; and

24 ‘‘(B) can be addressed in a cost-effective

25 manner, with the goal of achieving the greatest
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1 overall net reduction in risks with the public

2 and private sector resources expended.

3 ‘‘(2) DETERMINING THE MOST SERIOUS

4 RISKS.—In identifying the greatest risks under para5 graph (1) of this subsection, each covered agency

6 shall consider, at a minimum—

7 ‘‘(A) the likelihood, irreversibility, and se8 verity of the effect; and

9 ‘‘(B) the number and classes of individuals

10 potentially affected,

11 and shall explicitly take into account the results of

12 the comparative risk analysis conducted under sub13 section (d) of this section.

14 ‘‘(3) OMB REVIEW.—The covered agency’s de15 terminations of the most serious risks for purposes

16 of setting priorities shall be reviewed and approved

17 by the Director of the Office of Management and

18 Budget before submission of the covered agency’s

19 annual budget requests to Congress.

20 ‘‘(4) INCORPORATING RISK-BASED PRIORITIES

21 INTO BUDGET AND PLANNING.—The head of each

22 covered agency shall incorporate the priorities identi23 fied under paragraph (1) into the agency budget,

24 strategic planning, regulatory agenda, enforcement,

25 and research activities. When submitting its budget
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1 request to Congress and when announcing its regu2 latory agenda in the Federal Register, each covered

3 agency shall identify the risks that the covered agen4 cy head has determined are the most serious and

5 can be addressed in a cost-effective manner under

6 paragraph (1), the basis for that determination, and

7 explicitly identify how the covered agency’s requested

8 budget and regulatory agenda reflect those prior9 ities.

10 ‘‘(5) EFFECTIVE DATE.—This subsection shall

11 take effect 12 months after the date of enactment

12 of this Act.

13 ‘‘(d) COMPARATIVE RISK ANALYSIS.—

14 ‘‘(1) REQUIREMENT.—

15 ‘‘(A)(i) No later than 6 months after the

16 effective date of this Act, the Director of the

17 Office of Management and Budget shall enter

18 into appropriate arrangements with a nationally

19 recognized scientific institution or scholarly or20 ganization—

21 ‘‘(I) to conduct a study of the meth22 odologies for using comparative risk to

23 rank dissimilar human health, safety, and

24 environmental risks; and
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1 ‘‘(II) to conduct a comparative risk

2 analysis.

3 ‘‘(ii) The comparative risk analysis shall

4 compare and rank, to the extent feasible,

5 human health, safety, and environmental risks

6 potentially regulated across the spectrum of

7 programs administered by all covered agencies.

8 ‘‘(B) The Director shall consult with the

9 Office of Science and Technology Policy regard10 ing the scope of the study and the conduct of

11 the comparative risk analysis.

12 ‘‘(C) Nothing in this subsection should be

13 construed to prevent the Director from entering

14 into a sole-source arrangement with a nationally

15 recognized scientific institution or scholarly or16 ganization.

17 ‘‘(2) CRITERIA.—The Director shall ensure that

18 the arrangement under paragraph (1) provides

19 that—

20 ‘‘(A) the scope and specificity of the analy21 sis are sufficient to provide the President and

22 agency heads guidance in allocating resources

23 across agencies and among programs in agen24 cies to achieve the greatest degree of risk pre-
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1 vention and reduction for the public and private

2 resources expended;

3 ‘‘(B) the analysis is conducted through an

4 open process, including opportunities for the

5 public to submit views, data, and analyses and

6 to provide public comment on the results before

7 making them final;

8 ‘‘(C) the analysis is conducted by a bal9 anced group of individuals with relevant exper10 tise, including toxicologists, biologists, engi11 neers, and experts in medicine, industrial hy12 giene, and environmental effects, and the selec13 tion of members for such study shall be at the

14 sole discretion of the scientific institution or

15 scholarly organization;

16 ‘‘(D) the analysis is conducted, to the ex17 tent feasible and relevant, consistent with the

18 risk assessment and risk characterization prin19 ciples in section 633 of this subchapter;

20 ‘‘(E) the methodologies and principal sci21 entific determinations made in the analysis are

22 subjected to independent peer review consistent

23 with section 633(g), and the conclusions of the

24 peer review are made publicly available as part
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1 of the final report required under subsection

2 (e); and

3 ‘‘(F) the results are presented in a manner

4 that distinguishes between the scientific conclu5 sions and any policy or value judgments em6 bodied in the comparisons.

7 ‘‘(3) COMPLETION AND REVIEW.—No later than

8 3 years after the effective date of this Act, the com9 parative risk analysis required under paragraph (1)

10 shall be completed. The comparative risk analysis

11 shall be reviewed and revised at least every 5 years

12 thereafter for a minimum of 15 years following the

13 release of the first analysis. The Director shall ar14 range for such review and revision by an accredited

15 scientific body in the same manner as provided

16 under paragraphs (1) and (2).

17 ‘‘(4) STUDY.—The study of methodologies pro18 vided under paragraph (1) shall be conducted as

19 part of the first comparative risk analysis and shall

20 be completed no later than 180 days after the com21 pletion of that analysis. The goal of the study shall

22 be to develop and rigorously test methods of com23 parative risk analysis. The study shall have suffi24 cient scope and breadth to test approaches for im25 proving comparative risk analysis and its use in set-
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1 ting priorities for human health, safety, and environ2 mental risk prevention and reduction.

3 ‘‘(5) TECHNICAL GUIDANCE.—No later than

4 180 days after the effective date of this Act, the Di5 rector, in collaboration with other heads of covered

6 agencies shall enter into a contract with the Na7 tional Research Council to provide technical guid8 ance to agencies on approaches to using comparative

9 risk analysis in setting human health, safety, and

10 environmental priorities to assist agencies in comply11 ing with subsection (c) of this section.

12 ‘‘(e) REPORTS AND RECOMMENDATIONS TO CON13 GRESS AND THE PRESIDENT.—No later than 24 months

14 after the effective date of this Act, each covered agency

15 shall submit a report to Congress and the President—

16 ‘‘(1) detailing how the agency has complied

17 with subsection (c) and describing the reason for

18 any departure from the requirement to establish pri19 orities to achieve the greatest overall net reduction

20 in risk;

21 ‘‘(2) recommending—

22 ‘‘(A) modification, repeal, or enactment of

23 laws to reform, eliminate, or enhance programs

24 or mandates relating to human health, safety,

25 or the environment; and
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1 ‘‘(B) modification or elimination of statu2 tory or judicially mandated deadlines,that would

3 assist the covered agency to set priorities in ac4 tivities to address the risks to human health,

5 safety, or the environment in a manner consist6 ent with the requirements of subsection (c)(1);

7 ‘‘(3) evaluating the categories of policy and

8 value judgment used in risk assessment, risk charac9 terization, or cost-benefit analysis; and

10 ‘‘(4) discussing risk assessment research and

11 training needs, and the agency’s strategy and sched12 ule for meeting those needs.

13 ‘‘(f) SAVINGS PROVISION AND JUDICIAL REVIEW.—

14 ‘‘(1) IN GENERAL.—Nothing in this section

15 shall be construed to modify any statutory standard

16 or requirement designed to protect human health,

17 safety, or the environment.

18 ‘‘(2) JUDICIAL REVIEW.—Compliance or non19 compliance by an agency with the provisions of this

20 section shall not be subject to judicial review.

21 ‘‘(3) AGENCY ANALYSIS.—Any analysis pre22 pared under this section shall not be subject to judi23 cial consideration separate or apart from the re24 quirement, rule, program, or law to which it relates.

25 When an action for judicial review of a covered
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1 agency action is instituted, any analysis for, or relat2 ing to, the action shall constitute part of the whole

3 record of agency action for the purpose of judicial

4 review of the action and shall, to the extent relevant,

5 be considered by a court in determining the legality

6 of the covered agency action.’’.

7 (b) CLERICAL AMENDMENT.—The table of sections

8 appearing at the beginning of chapter 6 of title 5, United

9 States Code, is amended—

10 (1) by inserting immediately below the chapter

11 heading the following:

‘‘SUBCHAPTER I—REGULATORY ANALYSIS’’; and

12 (2) by adding at the end the following:

‘‘SUBCHAPTER III—RISK ASSESSMENTS

‘‘631. Short title.

‘‘632. Purposes.

‘‘633. Effective date; applicability; savings provisions.

‘‘634. Principles for risk assessment.

‘‘635. Principles for risk characterization and communication.

‘‘636. Recommendations or classifications by a non-United States-based entity.

‘‘637. Guidelines and report.

‘‘638. Research and training in risk assessment.

‘‘639. Study of comparative risk analysis.

‘‘639a. Definitions.

‘‘639b. Peer review program.

‘‘639c. Petition for review of a major free-standing risk assessment.

‘‘639d. Risk-based priorities.’’.

13 SEC. 3004. REGULATORY FLEXIBILITY ANALYSIS.

14 (a) IN GENERAL.—

15 (1) JUDICIAL REVIEW.—
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1 (A) AMENDMENT.—Section 611 of title 5,

2 United States Code, is amended to read as fol3 lows:

4 ‘‘§ 611. Judicial review

5 ‘‘(a)(1) Not later than one year, notwithstanding any

6 other provision of law, after the effective date of a final

7 rule with respect to which an agency—

8 ‘‘(A) certified, pursuant to section 605(b), that

9 such rule would not have a significant economic im10 pact on a substantial number of small entities; or

11 ‘‘(B) prepared a final regulatory flexibility anal12 ysis pursuant to section 604,

13 an affected small entity may petition for the judicial re14 view of such certification or analysis in accordance with

15 the terms of this subsection. A court having jurisdiction

16 to review such rule for compliance with the provisions of

17 section 553 or under any other provision of law shall have

18 jurisdiction to review such certification or analysis. In the

19 case where an agency delays the issuance of a final regu20 latory flexibility analysis pursuant to section 608(b), a pe21 tition for judicial review under this subsection shall be

22 filed not later than one year, notwithstanding any other

23 provision of law, after the date the analysis is made avail24 able to the public.
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1 ‘‘(2) For purposes of this subsection, the term ‘af2 fected small entity’ means a small entity that is or will

3 be adversely affected by the final rule.

4 ‘‘(3) Nothing in this subsection shall be construed to

5 affect the authority of any court to stay the effective date

6 of any rule or provision thereof under any other provision

7 of law.

8 ‘‘(4)(A) In the case where the agency certified that

9 such rule would not have a significant economic impact

10 on a substantial number of small entities, the court may

11 order the agency to prepare a final regulatory flexibility

12 analysis pursuant to section 604 if the court determines,

13 on the basis of the rulemaking record, that the certifi14 cation was arbitrary, capricious, an abuse of discretion,

15 or otherwise not in accordance with law.

16 ‘‘(B) In the case where the agency prepared a final

17 regulatory flexibility analysis, the court may order the

18 agency to take corrective action consistent with the re19 quirements of section 604 if the court determines, on the

20 basis of the rulemaking record, that the final regulatory

21 flexibility analysis was prepared by the agency without ob22 servance of procedure required by section 604.

23 ‘‘(5) If, by the end of the 90-day period beginning

24 on the date of the order of the court pursuant to para-
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1 graph (4) (or such longer period as the court may pro2 vide), the agency fails, as appropriate—

3 ‘‘(A) to prepare the analysis required by section

4 604; or

5 ‘‘(B) to take corrective action consistent with

6 the requirements of section 604,

7 the court may stay the rule or grant such other relief as

8 it deems appropriate.

9 ‘‘(6) In making any determination or granting any

10 relief authorized by this subsection, the court shall take

11 due account of the rule of prejudicial error.

12 ‘‘(b) In an action for the judicial review of a rule,

13 any regulatory flexibility analysis for such rule (including

14 an analysis prepared or corrected pursuant to subsection

15 (a)(4)) shall constitute part of the whole record of agency

16 action in connection with such review.

17 ‘‘(c) Nothing in this section bars judicial review of

18 any other impact statement or similar analysis required

19 by any other law if judicial review of such statement or

20 analysis is otherwise provided by law.’’.

21 (B) EFFECTIVE DATE.—The amendment

22 made by subsection (a) shall apply only to final

23 agency rules issued after the date of enactment

24 of this Act.
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1 (2) RULES COMMENTED ON BY SBA CHIEF

2 COUNSEL FOR ADVOCACY.—

3 (A) IN GENERAL.—Section 612 of title 5,

4 United States Code, is amended by adding at

5 the end the following new subsection:

6 ‘‘(d) ACTION BY THE SBA CHIEF COUNSEL FOR AD7 VOCACY.—

8 ‘‘(1) TRANSMITTAL OF PROPOSED RULES AND

9 INITIAL REGULATORY FLEXIBILITY ANALYSIS TO

10 SBA CHIEF COUNSEL FOR ADVOCACY.—On or before

11 the 30th day preceding the date of publication by an

12 agency of general notice of proposed rulemaking for

13 a rule, the agency shall transmit to the Chief Coun14 sel for Advocacy of the Small Business Administra15 tion—

16 ‘‘(A) a copy of the proposed rule; and

17 ‘‘(B)(i) a copy of the initial regulatory

18 flexibility analysis for the rule if required under

19 section 603; or

20 ‘‘(ii) a determination by the agency that an

21 initial regulatory flexibility analysis is not re22 quired for the proposed rule under section 603

23 and an explanation for the determination.

24 ‘‘(2) STATEMENT OF EFFECT.—On or before

25 the 15th day following receipt of a proposed rule and
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1 initial regulatory flexibility analysis from an agency

2 under paragraph (1), the Chief Counsel for Advo3 cacy may transmit to the agency a written statement

4 of the effect of the proposed rule on small entities.

5 ‘‘(3) RESPONSE.—If the Chief Counsel for Ad6 vocacy transmits to an agency a statement of effect

7 on a proposed rule in accordance with paragraph

8 (2), the agency shall publish the statement, together

9 with the response of the agency to the statement, in

10 the Federal Register at the time of publication of

11 general notice of proposed rulemaking for the rule.

12 ‘‘(4) SPECIAL RULE.—Any proposed rules is13 sued by an appropriate Federal banking agency (as

14 that term is defined in section 3(q) of the Federal

15 Deposit Insurance Act (12 U.S.C. 1813(q)), the Na16 tional Credit Union Administration, or the Office of

17 Federal Housing Enterprise Oversight, in connection

18 with the implementation of monetary policy or to en19 sure the safety and soundness of federally insured

20 depository institutions, any affiliate of such an insti21 tution, credit unions, or government sponsored hous22 ing enterprises or to protect the Federal deposit in23 surance funds shall not be subject to the require24 ments of this subsection.’’.
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1 (B) CONFORMING AMENDMENT.—Section

2 603(a) of title 5, United States Code, is amend3 ed by inserting ‘‘in accordance with section

4 612(d)’’ before the period at the end of the last

5 sentence.

6 (3) SENSE OF CONGRESS REGARDING SBA

7 CHIEF COUNSEL FOR ADVOCACY.—It is the sense of

8 Congress that the Chief Counsel for Advocacy of the

9 Small Business Administration should be permitted

10 to appear as amicus curiae in any action or case

11 brought in a court of the United States for the pur12 pose of reviewing a rule.

13 (b) SUBCHAPTER HEADING.—Chapter 6 of title 5,

14 United States Code, is amended by inserting immediately

15 before section 601, the following subchapter heading:

16 ‘‘SUBCHAPTER I—REGULATORY ANALYSIS’’.

17 SEC. 3005. GUIDANCE FOR JUDICIAL INTERPRETATION.

18 (a) IN GENERAL.—Chapter 7 of title 5, United

19 States Code, is amended—

20 (1) by striking section 706; and

21 (2) by adding at the end the following new sec22 tions:

23 ‘‘§ 706. Scope of review

24 ‘‘(a) To the extent necessary to reach a decision and

25 when presented, the reviewing court shall decide all rel-
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1 evant questions of law, interpret constitutional and statu2 tory provisions, and determine the meaning or applicabil3 ity of the terms of an agency action. The reviewing court

4 shall—

5 ‘‘(1) compel agency action unlawfully withheld

6 or unreasonably delayed; and

7 ‘‘(2) hold unlawful and set aside agency action,

8 findings and conclusions found to be—

9 ‘‘(A) arbitrary, capricious, an abuse of dis10 cretion, or otherwise not in accordance with

11 law;

12 ‘‘(B) contrary to constitutional right,

13 power, privilege, or immunity;

14 ‘‘(C) in excess of statutory jurisdiction, au15 thority, or limitations, or short of statutory

16 right;

17 ‘‘(D) without observance of procedure re18 quired by law;

19 ‘‘(E) unsupported by substantial evidence

20 in a proceeding subject to sections 556 and 557

21 or otherwise reviewed on the record of an agen22 cy hearing provided by statute; or

23 ‘‘(F) unwarranted by the facts to the ex24 tent that the facts are subject to trial de novo

25 by the reviewing court.
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1 ‘‘(b) In making the determinations set forth in sub2 section (a), the court shall review the whole record or

3 those parts of it cited by a party, and due account shall

4 be taken of the rule of prejudicial error.

5 ‘‘§ 707. Consent decrees

6 ‘‘In interpreting any consent decree in effect on or

7 after the date of enactment of this section that imposes

8 on an agency an obligation to initiate, continue, or com9 plete rulemaking proceedings, the court shall not enforce

10 the decree in a way that divests the agency of discretion

11 clearly granted to the agency by statute to respond to

12 changing circumstances, make policy or managerial

13 choices, or protect the rights of third parties.

14 ‘‘§ 708. Affirmative defense

15 ‘‘Notwithstanding any other provision of law, it shall

16 be an affirmative defense in any enforcement action

17 brought by an agency that the regulated person or entity

18 reasonably relied on and is complying with a rule, regula19 tion, adjudication, directive, or order of such agency or

20 any other agency that is incompatible, contradictory, or

21 otherwise cannot be reconciled with the agency rule, regu22 lation, adjudication, directive, or order being enforced.
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1 ‘‘§ 709. Agency interpretations in civil and criminal

2 actions

3 ‘‘(a) No civil or criminal penalty shall be imposed by

4 a court, and no civil administrative penalty shall be im5 posed by an agency, for the violation of a rule—

6 ‘‘(1) if the court or agency, as appropriate,

7 finds that the rule failed to give the defendant fair

8 warning of the conduct that the rule prohibits or re9 quires; or

10 ‘‘(2) if the court or agency, as appropriate,

11 finds that the defendant acted reasonably in good

12 faith based upon the language of the rule as pub13 lished in the Federal Register.

14 ‘‘(b) Nothing in this section shall be construed to pre15 clude an agency:

16 ‘‘(1) from revising a rule or changing its inter17 pretation of a rule in accordance with sections 552

18 and 553 of this title, and subject to the provisions

19 of this section, prospectively enforcing the require20 ments of such rule as revised or reinterpreted and

21 imposing or seeking a civil or criminal penalty for

22 any subsequent violation of such rule as revised or

23 reinterpreted;

24 ‘‘(2) from making a new determination of fact,

25 and based upon such determination, prospectively

26 applying a particular legal requirement.
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1 ‘‘(c) This section shall apply to any action filed after

2 the date of the enactment of the Comprehensive Regu3 latory Reform Act of 1995.’’.

4 (b) TECHNICAL AMENDMENT.—The analysis for

5 chapter 7 of title 5, United States Code, is amended by

6 striking the item relating to section 706 and inserting the

7 following new items:

‘‘706. Scope of review.

‘‘707. Consent decrees.

‘‘708. Affirmative defense.

‘‘709. Agency interpretations in civil and criminal actions.’’.

8 SEC. 3006. CONGRESSIONAL REVIEW.

9 (a) FINDING.—The Congress finds that effective

10 steps for improving the efficiency and proper management

11 of Government operations will be promoted if a morato12 rium on the implementation of certain major final and

13 proposed rules is imposed in order to provide Congress

14 an opportunity for review.

15 (b) IN GENERAL.—Title 5, United States Code, is

16 amended by inserting immediately after chapter 7 the fol17 lowing new chapter:‘‘

18 CHAPTER 8—CONGRESSIONAL REVIEW OF

19 AGENCY RULEMAKING

‘‘Sec.

‘‘801. Congressional review.

‘‘802. Congressional disapproval procedure.

‘‘803. Special rule on statutory, regulatory, and judicial deadlines.

‘‘804. Definitions.

‘‘805. Judicial review.

‘‘806. Applicability; severability.

‘‘807. Exemption for monetary policy.
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1 ‘‘§ 801. Congressional review

2 ‘‘(a)(1)(A) Before a rule can take effect as a final

3 rule, the Federal agency promulgating such rule shall sub4 mit to each House of the Congress and to the Comptroller

5 General a report containing—

6 ‘‘(i) a copy of the rule;

7 ‘‘(ii) a concise general statement relating to the

8 rule; and

9 ‘‘(iii) the proposed effective date of the rule.

10 ‘‘(B) The Federal agency promulgating the rule shall

11 make available to each House of Congress and the Comp12 troller General, upon request—

13 ‘‘(i) a complete copy of the cost-benefit analysis

14 of the rule, if any;

15 ‘‘(ii) the agency’s actions relevant to sections

16 603, 604, 605, 607, and 609;

17 ‘‘(iii) the agency’s actions relevant to sections

18 202, 203, 204, and 205 of the Unfunded Mandates

19 Reform Act of 1995; and

20 ‘‘(iv) any other relevant information or require21 ments under any other Act and any relevant Execu22 tive orders, such as Executive Order No. 12866.

23 ‘‘(C) Upon receipt, each House shall provide copies

24 to the Chairman and Ranking Member of each committee

25 with jurisdiction.
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1 ‘‘(2)(A) The Comptroller General shall provide a re2 port on each major rule to the committees of jurisdiction

3 to each House of the Congress by the end of 12 calendar

4 days after the submission or publication date as provided

5 in section 802(b)(2). The report of the Comptroller Gen6 eral shall include an assessment of the agency’s compli7 ance with procedural steps required by paragraph (1)(B).

8 ‘‘(B) Federal agencies shall cooperate with the Comp9 troller General by providing information relevant to the

10 Comptroller General’s report under subparagraph (A).

11 ‘‘(3) A major rule relating to a report submitted

12 under paragraph (1) shall take effect as a final rule, the

13 latest of—

14 ‘‘(A) the later of the date occurring 60 days

15 (excluding days either House of Congress is ad16 journed for more than 3 days during a session of

17 Congress) after the date on which—

18 ‘‘(i) the Congress receives the report sub19 mitted under paragraph (1); or

20 ‘‘(ii) the rule is published in the Federal

21 Register;

22 ‘‘(B) if the Congress passes a joint resolution of

23 disapproval described under section 802 relating to

24 the rule, and the President signs a veto of such reso25 lution, the earlier date—
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1 ‘‘(i) on which either House of Congress

2 votes and fails to override the veto of the Presi3 dent; or

4 ‘‘(ii) occurring 30 session days after the

5 date on which the Congress received the veto

6 and objections of the President; or

7 ‘‘(C) the date the rule would have otherwise

8 taken effect, if not for this section (unless a joint

9 resolution of disapproval under section 802 is en10 acted).

11 ‘‘(4) Except for a major rule, a rule shall take effect

12 as otherwise provided by law after submission to Congress

13 under paragraph (1).

14 ‘‘(5) Notwithstanding paragraph (3), the effective

15 date of a rule shall not be delayed by operation of this

16 chapter beyond the date on which either House of Con17 gress votes to reject a joint resolution of disapproval under

18 section 802.

19 ‘‘(b)(1) A rule or proposed rule shall not take effect

20 (or continue) as a final rule, if the Congress passes a joint

21 resolution of disapproval described under section 802.

22 ‘‘(2) A rule or proposed rule that does not take effect

23 (or does not continue) under paragraph (1) may not be

24 reissued in substantially the same form, and a new rule

25 that is substantially the same as such a rule or proposed
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1 rule may not be issued, unless the reissued or new rule

2 is specifically authorized by a law enacted after the date

3 of the joint resolution disapproving the original rule.

4 ‘‘(c)(1) Notwithstanding any other provision of this

5 section (except subject to paragraph (3)), a rule that

6 would not take effect by reason of this chapter may take

7 effect, if the President makes a determination under para8 graph (2) and submits written notice of such determina9 tion to the Congress.

10 ‘‘(2) Paragraph (1) applies to a determination made

11 by the President by Executive order that the rule should

12 take effect because such rule is—

13 ‘‘(A) necessary because of an imminent threat

14 to health or safety or other emergency;

15 ‘‘(B) necessary for the enforcement of criminal

16 laws;

17 ‘‘(C) necessary for national security; or

18 ‘‘(D) issued pursuant to a statute implementing

19 an international trade agreement.

20 ‘‘(3) An exercise by the President of the authority

21 under this subsection shall have no effect on the proce22 dures under section 802 or the effect of a joint resolution

23 of disapproval under this section.

24 ‘‘(d)(1) In addition to the opportunity for review oth25 erwise provided under this chapter, in the case of any rule
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1 that is published in the Federal Register (as a rule that

2 shall take effect as a final rule) during the period begin3 ning on the date occurring 60 days before the date the

4 Congress adjourns a session of Congress through the date

5 on which the same or succeeding Congress first convenes

6 its next session, section 802 shall apply to such rule in

7 the succeeding session of Congress.

8 ‘‘(2)(A) In applying section 802 for purposes of such

9 additional review, a rule described under paragraph (1)

10 shall be treated as though—

11 ‘‘(i) such rule were published in the Federal

12 Register (as a rule that shall take effect as a final

13 rule) on the 15th session day after the succeeding

14 Congress first convenes; and

15 ‘‘(ii) a report on such rule were submitted to

16 Congress under subsection (a)(1) on such date.

17 ‘‘(B) Nothing in this paragraph shall be construed

18 to affect the requirement under subsection (a)(1) that a

19 report shall be submitted to Congress before a final rule

20 can take effect.

21 ‘‘(3) A rule described under paragraph (1) shall take

22 effect as a final rule as otherwise provided by law (includ23 ing other subsections of this section).

24 ‘‘(e)(1) Section 802 shall apply in accordance with

25 its terms to any major rule that was published in the Fed-
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1 eral Register (as a rule that shall take effect as a final

2 rule) in the period beginning on November 20, 1994,

3 through the date of enactment of the Comprehensive Reg4 ulatory Reform Act of 1995.

5 ‘‘(2) In applying section 802 for purposes of Congres6 sional review, a rule described under paragraph (1) shall

7 be treated as though—

8 ‘‘(A) such rule were published in the Federal

9 Register (as a rule that shall take effect as a final

10 rule) on the date of enactment of the Comprehensive

11 Regulatory Reform Act of 1995; and

12 ‘‘(B) a report on such rule were submitted to

13 Congress under subsection (a)(1) on such date.

14 ‘‘(3) The effectiveness of a rule described under para15 graph (1) shall be as otherwise provided by law, unless

16 the rule is made of no force or effect under section 802.

17 ‘‘(f) Any rule that takes effect and later is made of

18 no force or effect by enactment of a joint resolution under

19 section 802 shall be treated as though such rule had never

20 taken effect.

21 ‘‘(g) If the Congress does not enact a joint resolution

22 of disapproval under section 802, no court or agency may

23 infer any intent of the Congress from any action or inac24 tion of the Congress with regard to such rule, related stat25 ute, or joint resolution of disapproval.
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1 ‘‘§ 802. Congressional disapproval procedure

2 ‘‘(a) JOINT RESOLUTION DEFINED.—For purposes

3 of this section, the term ‘joint resolution’ means only—

4 ‘‘(1) a joint resolution introduced in the period

5 beginning on the date on which the report referred

6 to in section 801(a) is received by Congress and end7 ing 60 days thereafter (excluding days either House

8 of Congress is adjourned for more than 3 days dur9 ing a session of Congress), the matter after the re10 solving clause of which is as follows: ‘That Congress

11 disapproves the rule submitted by the ll relating

12 to ll, and such rule shall have no force or effect.’

13 (The blank spaces being appropriately filled in); or

14 ‘‘(2) a joint resolution the matter after the re15 solving clause of which is as follows: ‘That the Con16 gress disapproves the proposed rule published by the

17 llll relating to lll, and such proposed

18 rule shall not be issued or take effect as a final

19 rule.’ (the blank spaces being appropriately filled in)

20 ‘‘(b)(1) A joint resolution described in subsection (a)

21 shall be referred to the committees in each House of Con22 gress with jurisdiction.

23 ‘‘(2) For purposes of this section, the term ‘submis24 sion or publication date’ means—

25 ‘‘(A) in the case of a joint resolution described

26 in subsection (a)(1) the later of the date on which—
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1 ‘‘(i) the Congress receives the report sub2 mitted under section 801(a)(1); or

3 ‘‘(ii) the rule is published in the Federal

4 Register; or

5 ‘‘(B) in the case of a joint resolution described

6 in subsection (a)(2), the date of introduction of the

7 joint resolution.

8 ‘‘(c) In the Senate, if the committee to which is re9 ferred a joint resolution described in subsection (a) has

10 not reported such joint resolution (or an identical joint

11 resolution) at the end of 20 calendar days after the sub12 mission or publication date defined under subsection

13 (b)(2), such committee may be discharged from further

14 consideration of such joint resolution upon a petition sup15 ported in writing by 30 Members of the Senate, and such

16 joint resolution shall be placed on the appropriate cal17 endar.

18 ‘‘(d)(1) In the Senate, when the committee to which

19 a joint resolution is referred has reported, or when a com20 mittee is discharged (under subsection (c)) from further

21 consideration of, a joint resolution described in subsection

22 (a), it is at any time thereafter in order (even though a

23 previous motion to the same effect has been disagreed to)

24 for a motion to proceed to the consideration of the joint

25 resolution, and all points of order against the joint resolu-
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1 tion (and against consideration of the joint resolution) are

2 waived. The motion is not subject to amendment, or to

3 a motion to postpone, or to a motion to proceed to the

4 consideration of other business. A motion to reconsider the

5 vote by which the motion is agreed to or disagreed to shall

6 not be in order. If a motion to proceed to the consideration

7 of the joint resolution is agreed to, the joint resolution

8 shall remain the unfinished business of the Senate until

9 disposed of.

10 ‘‘(2) In the Senate, debate on the joint resolution,

11 and on all debatable motions and appeals in connection

12 therewith, shall be limited to not more than 10 hours,

13 which shall be divided equally between those favoring and

14 those opposing the joint resolution. A motion further to

15 limit debate is in order and not debatable. An amendment

16 to, or a motion to postpone, or a motion to proceed to

17 the consideration of other business, or a motion to recom18 mit the joint resolution is not in order.

19 ‘‘(3) In the Senate, immediately following the conclu20 sion of the debate on a joint resolution described in sub21 section (a), and a single quorum call at the conclusion of

22 the debate if requested in accordance with the rules of the

23 Senate, the vote on final passage of the joint resolution

24 shall occur.
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1 ‘‘(4) Appeals from the decisions of the Chair relating

2 to the application of the rules of the Senate to the proce3 dure relating to a joint resolution described in subsection

4 (a) shall be decided without debate.

5 ‘‘(e) If, before the passage by one House of a joint

6 resolution of that House described in subsection (a), that

7 House receives from the other House a joint resolution

8 described in subsection (a), then the following procedures

9 shall apply:

10 ‘‘(1) The joint resolution of the other House

11 shall not be referred to a committee.

12 ‘‘(2) With respect to a joint resolution described

13 in subsection (a) of the House receiving the joint

14 resolution—

15 ‘‘(A) the procedure in that House shall be

16 the same as if no joint resolution had been re17 ceived from the other House; but

18 ‘‘(B) the vote on final passage shall be on

19 the joint resolution of the other House.

20 ‘‘(f) This section is enacted by Congress—

21 ‘‘(1) as an exercise of the rulemaking power of

22 the Senate and House of Representatives, respec23 tively, and as such it is deemed a part of the rules

24 of each House, respectively, but applicable only with

25 respect to the procedure to be followed in that
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1 House in the case of a joint resolution described in

2 subsection (a), and it supersedes other rules only to

3 the extent that it is inconsistent with such rules; and

4 ‘‘(2) with full recognition of the constitutional

5 right of either House to change the rules (so far as

6 relating to the procedure of that House) at any time,

7 in the same manner, and to the same extent as in

8 the case of any other rule of that House.

9 ‘‘§ 803. Special rule on statutory, regulatory, and judi10 cial deadlines

11 ‘‘(a) In the case of any deadline for, relating to, or

12 involving any rule which does not take effect (or the effec13 tiveness of which is terminated) because of enactment of

14 a joint resolution under section 802, that deadline is ex15 tended until the date 1 year after the date of the joint

16 resolution. Nothing in this subsection shall be construed

17 to affect a deadline merely by reason of the postponement

18 of a rule’s effective date under section 801(a).

19 ‘‘(b) The term ‘deadline’ means any date certain for

20 fulfilling any obligation or exercising any authority estab21 lished by or under any Federal statute or regulation, or

22 by or under any court order implementing any Federal

23 statute or regulation.

24 ‘‘§ 804. Definitions

25 ‘‘(a) For purposes of this chapter—
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1 ‘‘(1) the term ‘Federal agency’ means any agen2 cy as that term is defined in section 551(1) (relating

3 to administrative procedure);

4 ‘‘(2) the term ‘major rule’ has the same mean5 ing given such term in section 621(5); and

6 ‘‘(3) the term ‘final rule’ means any final rule

7 or interim final rule.

8 ‘‘(b) As used in subsection (a)(3), the term ‘rule’ has

9 the meaning given such term in section 551, except that

10 such term does not include any rule of particular applica11 bility including a rule that approves or prescribes for the

12 future rates, wages, prices, services, or allowances there13 for, corporate or financial structures, reorganizations,

14 mergers, or acquisitions thereof, or accounting practices

15 or disclosures bearing on any of the foregoing or any rule

16 of agency organization, personnel, procedure, practice or

17 any routine matter.

18 ‘‘§ 805. Judicial review

19 ‘‘No determination, finding, action, or omission under

20 this chapter shall be subject to judicial review.

21 ‘‘§ 806. Applicability; severability

22 ‘‘(a) This chapter shall apply notwithstanding any

23 other provision of law.

24 ‘‘(b) If any provision of this chapter or the applica25 tion of any provision of this chapter to any person or cir-
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1 cumstance, is held invalid, the application of such provi2 sion to other persons or circumstances, and the remainder

3 of this chapter, shall not be affected thereby.

4 ‘‘§ 807. Exemption for monetary policy

5 ‘‘Nothing in this chapter shall apply to rules that con6 cern monetary policy proposed or implemented by the

7 Board of Governors of the Federal Reserve System or the

8 Federal Open Market Committee.’’.

9 (c) Effective Date.—The amendment made by sub10 section (b) shall take effect on the date of enactment of

11 this Act.

12 (d) TECHNICAL AMENDMENT.—The table of chapters

13 for part I of title 5, United States Code, is amended by

14 inserting immediately after the item relating to chapter

15 7 the following:

‘‘8. Congressional Review of Agency Rulemaking ........... 801’’.

16 SEC. 3007. REGULATORY ACCOUNTING STATEMENT.

17 (a) DEFINITIONS.—For purposes of this section, the

18 following definitions apply:

19 (1) MAJOR RULE.—The term ‘‘major rule’’ has

20 the same meaning as defined in section 621(5)(A)(i)

21 of title 5, United States Code. The term shall not

22 include—

23 (A) administrative actions governed by sec24 tions 556 and 557 of title 5, United States

25 Code;
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1 (B) regulations issued with respect to a

2 military or foreign affairs function of the Unit3 ed States or a statute implementing an inter4 national trade agreement; or

5 (C) regulations related to agency organiza6 tion, management, or personnel.

7 (2) AGENCY.—The term ‘‘agency’’ means any

8 executive department, military department, Govern9 ment corporation, Government controlled corpora10 tion, or other establishment in the executive branch

11 of the Government (including the Executive Office of

12 the President), or any independent regulatory agen13 cy, but shall not include—

14 (A) the General Accounting Office;

15 (B) the Federal Election Commission;

16 (C) the governments of the District of Co17 lumbia and of the territories and possessions of

18 the United States, and their various subdivi19 sions; or

20 (D) Government-owned contractor-oper21 ated facilities, including laboratories engaged in

22 national defense research and production activi23 ties.

24 (b) ACCOUNTING STATEMENT.—

25 (1) IN GENERAL.—
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1 (A) The President shall be responsible for

2 implementing and administering the require3 ments of this section.

4 (B) Not later than June 1, 1997, and each

5 June 1 thereafter, the President shall prepare

6 and submit to Congress an accounting state7 ment that estimates the annual costs of major

8 rules and corresponding benefits in accordance

9 with this subsection.

10 (2) YEARS COVERED BY ACCOUNTING STATE11 MENT.—Each accounting statement shall cover, at a

12 minimum, the 5 fiscal years beginning on October 1

13 of the year in which the report is submitted and may

14 cover any fiscal year preceding such fiscal years for

15 purpose of revising previous estimates.

16 (3) TIMING AND PROCEDURES.—

17 (A) The President shall provide notice and

18 opportunity for comment for each accounting

19 statement. The President may delegate to an

20 agency the requirement to provide notice and

21 opportunity to comment for the portion of the

22 accounting statement relating to that agency.

23 (B) The President shall propose the first

24 accounting statement under this subsection not

25 later than 2 years after the date of enactment
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1 of this Act and shall issue the first accounting

2 statement in final form not later than 3 years

3 after such effective date. Such statement shall

4 cover, at a minimum, each of the fiscal years

5 beginning after the date of enactment of this

6 Act.

7 (4) CONTENT OF ACCOUNTING STATEMENT.—

8 (A) Each accounting statement shall con9 tain estimates of costs and benefits with respect

10 to each fiscal year covered by the statement in

11 accordance with this paragraph. For each such

12 fiscal year for which estimates were made in a

13 previous accounting statement, the statement

14 shall revise those estimates and state the rea15 sons for the revisions.

16 (B)(i) An accounting statement shall esti17 mate the costs of major rules by setting forth,

18 for each year covered by the statement—

19 (I) the annual expenditure of national

20 economic resources for major rules,

21 grouped by regulatory program; and

22 (II) such other quantitative and quali23 tative measures of costs as the President

24 considers appropriate.
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1 (ii) For purposes of the estimate of costs

2 in the accounting statement, national economic

3 resources shall include, and shall be listed

4 under, at least the following categories:

5 (I) Private sector costs.

6 (II) Federal sector costs.

7 (III) State and local government ad8 ministrative costs.

9 (C) An accounting statement shall estimate the

10 benefits of major rules by setting forth, for each

11 year covered by the statement, such quantitative and

12 qualitative measures of benefits as the President

13 considers appropriate. Any estimates of benefits con14 cerning reduction in health, safety, or environmental

15 risks shall present the most plausible level of risk

16 practical, along with a statement of the reasonable

17 degree of scientific certainty.

18 (c) ASSOCIATED REPORT TO CONGRESS.—

19 (1) IN GENERAL.—At the same time as the

20 President submits an accounting statement under

21 subsection (b), the President, acting through the Di22 rector of the Office of Management and Budget,

23 shall submit to Congress a report associated with

24 the accounting statement (hereinafter referred to as
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1 an ‘‘associated report’’). The associated report shall

2 contain, in accordance with this subsection—

3 (A) analyses of impacts; and

4 (B) recommendations for reform.

5 (2) ANALYSES OF IMPACTS.—The President

6 shall include in the associated report the following:

7 (A) Analyses prepared by the President of

8 the cumulative impact of major rules in Federal

9 regulatory programs covered in the accounting

10 statement on the following:

11 (i) The ability of State and local gov12 ernments to provide essential services, in13 cluding police, fire protection, and edu14 cation.

15 (ii) Small business.

16 (iii) Productivity.

17 (iv) Wages.

18 (v) Economic growth.

19 (vi) Technological innovation.

20 (vii) Consumer prices for goods and

21 services.

22 (viii) Such other factors considered

23 appropriate by the President.

24 (B) A summary of any independent analy25 ses of impacts prepared by persons commenting
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1 during the comment period on the accounting

2 statement.

3 (3) RECOMMENDATIONS FOR REFORM.—The

4 President shall include in the associated report the

5 following:

6 (A) A summary of recommendations of the

7 President for reform or elimination of any Fed8 eral regulatory program or program element

9 that does not represent sound use of national

10 economic resources or otherwise is inefficient.

11 (B) A summary of any recommendations

12 for such reform or elimination of Federal regu13 latory programs or program elements prepared

14 by persons commenting during the comment pe15 riod on the accounting statement.

16 (d) GUIDANCE FROM OFFICE OF MANAGEMENT AND

17 BUDGET.—The Director of the Office of Management and

18 Budget shall, in consultation with the Council of Economic

19 Advisers, provide guidance to agencies—

20 (1) to standardize measures of costs and bene21 fits in accounting statements prepared pursuant to

22 sections 3 and 7 of this Act, including—

23 (A) detailed guidance on estimating the

24 costs and benefits of major rules; and
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1 (B) general guidance on estimating the

2 costs and benefits of all other rules that do not

3 meet the thresholds for major rules; and

4 (2) to standardize the format of the accounting

5 statements.

6 (e) RECOMMENDATIONS FROM CONGRESSIONAL

7 BUDGET OFFICE.—After each accounting statement and

8 associated report submitted to Congress, the Director of

9 the Congressional Budget Office shall make recommenda10 tions to the President—

11 (1) for improving accounting statements pre12 pared pursuant to this section, including rec13 ommendations on level of detail and accuracy; and

14 (2) for improving associated reports prepared

15 pursuant to this section, including recommendations

16 on the quality of analysis.

17 (f) JUDICIAL REVIEW.—No requirements under this

18 section shall be subject to judicial review in any manner.

19 SEC. 3008. STUDIES AND REPORTS.

20 (a) RISK ASSESSMENTS.—The Administrative Con21 ference of the United States shall—

22 (1) develop and carry out an ongoing study of

23 the operation of the risk assessment requirements of

24 subchapter III of chapter 6 of title 5, United States

25 Code (as added by section 4 of this Act); and
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1 (2) submit an annual report to the Congress on

2 the findings of the study.

3 (b) ADMINISTRATIVE PROCEDURE ACT.—Not later

4 than December 31, 1996, the Administrative Conference

5 of the United States shall—

6 (1) carry out a study of the operation of the

7 Administrative Procedure Act (as amended by sec8 tion 3 of this Act); and

9 (2) submit a report to the Congress on the find10 ings of the study, including proposals for revision, if

11 any.

12 SEC. 3009. MISCELLANEOUS PROVISIONS.

13 (a) EFFECTIVE DATE.—Except as otherwise pro14 vided, this Act and the amendments made by this Act shall

15 take effect on the date of enactment.

16 (b) SEVERABILITY.—If any provision of this Act, an

17 amendment made by this Act, or the application of such

18 provision or amendment to any person or circumstance is

19 held to be unconstitutional, the remainder of this Act, the

20 amendments made by this Act, and the application of the

21 provisions of such to any person or circumstance shall not

22 be affected thereby.

Passed the House of Representatives November 9,

1995.

Attest: ROBIN H. CARLE,

Clerk.
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