I

104TH CONGRESS

2D SESSION H. R. 3351

To establish a Corporate Independence Commission, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

APRIL 30, 1996

Mr. FOGLIETTA (for himself, Mr. BONIOR, Mr. WAXMAN, Ms. MCKINNEY, Mr.

RAHALL, Mr. KLECZKA, Mr. WATT of North Carolina, Mr. MINGE, Mr.

MORAN, Mr. LANTOS, Mr. KENNEDY of Massachusetts, Mr. COLEMAN,

Ms. NORTON, Mr. BARRETT of Wisconsin, Mr. EVANS, Ms. RIVERS, Mr.

FILNER, Mr. DEUTSCH, Mr. SERRANO, Mr. LIPINSKI, and Mr. HINCHEY)

introduced the following bill; which was referred to the Committee on

Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To establish a Corporate Independence Commission, 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,

3 SECTION 1. SHORT TITLE.

4 This title may be cited as the ‘‘Corporate Welfare Re5 form Act’’.
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1 SEC. 2. CORPORATE INDEPENDENCE COMMISSION.

2 (a) ESTABLISHMENT.—There is established an inde3 pendent commission to be known as the ‘‘Corporate Inde4 pendence Commission’’ to study reductions in corporate

5 subsidies to reduce the Federal budget deficit.

6 (b) DUTIES.—The Commission shall carry out the

7 duties specified for it in this Act.

8 (c) APPOINTMENT.—

9 (1) NUMBER OF MEMBERS.—The Commission

10 shall be composed of eight members appointed by

11 the President.

12 (2) TIME OF APPOINTMENTS.—The President

13 shall appoint the members of the Commission not

14 later than 6 months after the date of the enactment

15 of this Act.

16 (3) CONSULTATION.—In selecting individuals

17 for appointments to the Commission, the President

18 shall consult with—

19 (A) the Speaker of the House of Rep20 resentatives concerning the appointment of two

21 members;

22 (B) the majority leader of the Senate con23 cerning the appointment of two members;

24 (C) the minority leader of the House of

25 Representatives concerning the appointment of

26 one member; and
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1 (D) the minority leader of the Senate con2 cerning the appointment of one member.

3 (4) CHAIRMAN.—At the time the President ap4 points members to the Commission, the President

5 shall designate one such individual who shall serve

6 as Chairman of the Commission.

7 (d) TERMS.—Each member of the Commission shall

8 be appointed to serve for the life of the Commission.

9 (e) MEETINGS.—Each meeting of the Commission,

10 other than meetings in which classified information is to

11 be discussed, shall be open to the public.

12 (f) VACANCIES.—A vacancy in the Commission shall

13 be filled in the same manner as the original appointment.

14 (g) PAY AND TRAVEL EXPENSES.—

15 (1) PAY.—

16 (A) IN GENERAL.—Each member of the

17 Commission, other than the Chairman, shall be

18 paid at a rate not to exceed the daily equivalent

19 of the minimum annual rate of basic pay pay20 able for level IV of the Executive Schedule

21 under section 5315 of title 5, United States

22 Code, for each day (including travel time) dur23 ing which the member is engaged in the actual

24 performance of duties vested in the Commis25 sion.
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1 (B) CHAIRMAN.—The Chairman shall be

2 paid for each day referred to in subparagraph

3 (A) at a rate not to exceed the daily equivalent

4 of the minimum annual rate of basic pay pay5 able for level III of the Executive Schedule

6 under section 5314 of title 5, United States

7 Code.

8 (2) TRAVEL EXPENSES.—Members of the Com9 mission shall receive travel expenses, including per

10 diem in lieu of subsistence, in accordance with sec11 tions 5702 and 5703 of title 5, United States Code.

12 (3) PROHIBITION OF COMPENSATION OF FED13 ERAL EMPLOYEES.—Members of the Commission

14 who are full-time officers or employees of the United

15 States, or Members of Congress, may not receive ad16 ditional pay, allowances, or benefits by reason of

17 their service on the Commission.

18 (h) DIRECTOR OF STAFF.—

19 (1) IN GENERAL.—The Commission shall ap20 point a Director.

21 (2) PAY.—The Director shall be paid at a rate

22 not to exceed the rate of basic pay payable for level

23 IV of the Executive Schedule under section 5315 of

24 title 5, United States Code.

25 (i) STAFF.—
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1 (1) IN GENERAL.—Subject to paragraphs (2)

2 and (3), the Director, with the approval of the Com3 mission, may appoint and fix the pay of additional

4 personnel.

5 (2) APPOINTMENT AND PAY.—The Director

6 may make such appointments without regard to the

7 provisions of title 5, United States Code, governing

8 appointments in the competitive service, and any

9 personnel so appointed may be paid without regard

10 to the provisions of chapter 51 and subchapter III

11 of chapter 53 of that title (relating to classification

12 and General Schedule pay rates), except that an in13 dividual so appointed may not receive pay in excess

14 of the annual rate of basic pay payable for level IV

15 of the Executive Schedule under section 5315 of title

16 5, United States Code.

17 (3) DETAILING FROM FEDERAL DEPARTMENTS

18 AND AGENCIES.—Upon request of the Director, the

19 head of any Federal department or agency may de20 tail any of the personnel of that department or agen21 cy to the Commission to assist the Commission in

22 carrying out its duties under this Act.

23 (4) ASSISTANCE FROM COMPTROLLER GEN24 ERAL.—The Comptroller General of the United

25 States shall provide assistance, including the detail-
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1 ing of employees, to the Commission in accordance

2 with an agreement entered into between the Comp3 troller General and the Commission.

4 (j) OTHER AUTHORITY.—

5 (1) EXPERTS AND CONSULTANTS.—The Com6 mission may procure by contract, to the extent funds

7 are available, the temporary or intermittent services

8 of experts or consultants pursuant to section 3109

9 of title 5, United States Code.

10 (2) LEASING AND PERSONAL PROPERTY.—The

11 Commission may lease space and acquire personal

12 property to the extent funds are available. To the

13 extent practicable, the Commission shall use suitable

14 real property available under the most recent inven15 tory of real property assets published by the Resolu16 tion Trust Corporation under section 21A(b)(11)(F)

17 of the Federal Home Loan Bank Act (12 U.S.C.

18 1441a(b)(11)(F)).

19 (k) FUNDING.—There are authorized to be appro20 priated to the Commission such funds as are necessary

21 to carry out its duties under this Act. Such funds shall

22 remain available until expended.

23 (l) TERMINATION.—The Commission shall terminate

24 not later than September 30, 2003.
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1 SEC. 3. PROCEDURE FOR MAKING RECOMMENDATIONS

2 FOR CORPORATE SUBSIDY REDUCTIONS.

3 (a) CRITERIA.—

4 (1) IN GENERAL.—Not later than 8 months

5 after the date of the enactment of this Act, the

6 Chairman of the Commission shall publish in the

7 Federal Register and transmit to the Congress a

8 preliminary draft of the criteria which the Chairman

9 proposes should be used in making recommendations

10 for reductions in corporate subsidies under this Act.

11 Before the publication required by this paragraph,

12 the Chairman shall provide an opportunity for public

13 comment on the proposed criteria for a period of at

14 least 30 days and shall hold a public hearing on the

15 proposed criteria. The Chairman shall provide the

16 public with appropriate notice of such opportunity to

17 comment and of such hearing.

18 (2) FACTORS CONSIDERED.— In developing the

19 criteria, the Chairman shall consider—

20 (A) the income categories of individuals af21 fected by any reduction in corporate subsidies,

22 (B) the number of individuals affected by

23 any such reduction,

24 (C) the impact of any such reduction on

25 various geographic regions,
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1 (D) the number, type, and size of busi2 nesses affected by any such reduction, and

3 (E) the impact of any such reduction on

4 job loss.

5 (3) PUBLICATION AND TRANSMISSION.—Not

6 later than 10 months after the date of the enact7 ment of this Act, the Chairman shall publish in the

8 Federal Register and transmit to the Congress the

9 final criteria to be used in making recommendations

10 for reductions in corporate subsidies under this Act.

11 (4) AVAILABILITY OF INFORMATION.—The

12 Chairman shall make available to the Commission

13 and to the Comptroller General of the United States

14 all information used by the Chairman in formulating

15 the criteria.

16 (b) REVIEW AND RECOMMENDATIONS BY THE COM17 MISSION.—

18 (1) IN GENERAL.—Once during the term of

19 every Congress, for the life of the Commission, the

20 Commission shall identify and review corporate sub21 sidies and shall publish in the Federal Register and

22 transmit to the President and the Congress a report

23 containing a list of corporate subsidy reductions that

24 the Commission recommends on the basis of—
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1 (A) the final criteria referred to in sub2 section (a), and

3 (B) a weighing of the cost of each subsidy

4 recommended to be reduced or eliminated

5 against the value of the subsidy in creating

6 jobs.

7 (2) DATE OF SUBMISSION.—The Commission

8 shall submit the first report required by paragraph

9 (1) not later than 7 months after the date of the

10 publication required by subsection (a)(3).

11 (3) RECOMMENDATIONS.—In each report re12 quired by paragraph (1), the Commission shall rec13 ommend corporate subsidy reductions sufficient to

14 raise the appropriate amount of revenue in each of

15 the first 2 fiscal years (or 1 fiscal year, in the case

16 of the 4th such report) beginning in calendar years

17 beginning after the date of the transmission of such

18 report under paragraph (1), as determined under

19 the following table:

If the calendar year is: The appropriate amount is:

The 1st beginning after the 1st report ................................. $3,000,000,000

The 2d beginning after the 1st report .................................. $3,000,000,000

The 1st beginning after the 2d report .................................. $5,000,000,000

The 2d beginning after the 2d report ................................... $5,000,000,000

The 1st beginning after the 3d report .................................. $7,000,000,000

The 2d beginning after the 3d report ................................... $12,000,000,000

The 1st beginning after the 4th report ................................ $15,000,000,000.

20 (4) PUBLIC HEARINGS.—Before the trans21 mission of any report under paragraph (1), the
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1 Commission shall conduct public hearings on the

2 recommendations contained in such report.

3 (5) ADDITIONAL CONTENTS OF REPORT.—The

4 Commission shall include, with each list of rec5 ommendations published and transmitted under

6 paragraph (1)—

7 (A) a summary of the selection process

8 that resulted in the recommendations,

9 (B) with respect to each subsidy which the

10 Commission recommends to be reduced or

11 eliminated, an analysis of the costs (including

12 costs resulting from job loss) and savings that

13 would result from such elimination or reduction,

14 and

15 (C) legislative language which if enacted

16 would have the effect of carrying out all of the

17 corporate subsidy reductions which are rec18 ommended by the Commission on such list.

19 (6) RECOMMENDATIONS FOR ALTERNATIVE

20 METHODS OF FUNDING.—The Commission may in21 clude, with such list, recommendations for alter22 native methods for funding some or all of the cor23 porate subsidies contained on such list. The rec24 ommended alternative methods for funding may in-
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1 clude, but need not be limited to, the imposition of

2 user fees.

3 (7) AVAILABILITY OF INFORMATION.—After

4 transmitting a report under paragraph (1), the Com5 mission shall make available to the Congress and the

6 Comptroller General of the United States all infor7 mation used by the Commission in making the rec8 ommendations contained in such report.

9 (c) ASSISTANCE FROM COMPTROLLER GENERAL.—

10 The Comptroller General of the United States shall—

11 (1) assist the Commission, to the extent re12 quested by the Commission, in the Commission’s re13 view and analysis of the criteria transmitted by the

14 Chairman under subsection (a); and

15 (2) not later than 45 days after each trans16 mission required by subsection (b)(1), transmit to

17 the Congress, to the President, and to the Commis18 sion a report containing a detailed analysis of the

19 Commission’s recommendations and selection proc20 ess.

21 (d) REVIEW BY THE PRESIDENT.—

22 (1) NOTICE OF APPROVAL, DISAPPROVAL, OR

23 PARTIAL APPROVAL.—Not later than 90 days after

24 each transmission under subsection (c)(2), the Presi25 dent shall transmit to the Commission and to the
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1 Congress either a notice of the President’s approval

2 of all of the recommendations contained in the Com3 mission’s report or a notice of the President’s dis4 approval or partial approval of such recommenda5 tions.

6 (2) TRANSMISSION IF APPROVAL.—If the Presi7 dent approves all of the recommendations of the

8 Commission, the President shall transmit to the

9 Congress a copy of such recommendations, a certifi10 cation of such approval, and a copy of the legislative

11 language submitted by the Commission under sub12 section (b)(5).

13 (3) TRANSMISSION AND REVISED LIST IF DIS14 APPROVAL.—If the President disapproves the rec15 ommendations of the Commission, in whole or in

16 part, the President shall transmit to the Commission

17 and the Congress the reasons for such disapproval.

18 The Commission shall then transmit to the Presi19 dent, not later than 30 days after the transmission

20 of such reasons, a revised list of recommendations

21 for corporate subsidy reductions and revised legisla22 tive language which if enacted would have the effect

23 of carrying out all corporate subsidy reductions

24 which are recommended by the Commission on such

25 revised list.
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1 (4) TRANSMISSION AFTER REVISED REC2 OMMENDATIONS.—Not later than 30 days after the

3 Commission transmits a revised list of recommenda4 tions and revised language under paragraph (3), the

5 President shall transmit to the Congress—

6 (A) a copy of such revised list of rec7 ommendations and such revised language,

8 (B) a report containing the President’s ap9 proval, partial approval, or disapproval of the

10 recommendations on the revised list, and

11 (C) if the President approves all of the rec12 ommendations on the revised list, a certification

13 of such approval.

14 SEC. 4. INTRODUCTION OF DRAFT LEGISLATION FOR COR15 PORATE SUBSIDY REDUCTION.

16 The legislative language transmitted to the Congress

17 under section 3(d) shall be introduced as a bill by the ma18 jority leader of the House of Representatives and the ma19 jority leader of the Senate.

20 SEC. 5. JOINT COMMITTEE ON CORPORATE SUBSIDY RE21 DUCTION.

22 (a) ESTABLISHMENT.—There is established a Joint

23 Committee on Corporate Subsidy Reduction.

24 (b) MEMBERSHIP.—
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1 (1) IN GENERAL.—The Joint Committee shall

2 consist of 22 members as follows:

3 (A) 11 members of the House of Rep4 resentatives, to be appointed by the majority

5 leader of the House of Representatives, 6 from

6 the majority and 5 from the minority party.

7 (B) 11 members of the Senate, to be ap8 pointed by the majority leader of the Senate, 6

9 from the majority and 5 from the minority

10 party.

11 (2) MANNER OF APPOINTMENTS.—In making

12 appointments under paragraph (1), the majority

13 leader of the House of Representatives and the ma14 jority leader of the Senate shall give due consider15 ation to providing appropriate representation on the

16 Joint Committee to committees of the House and

17 Senate, respectively, which have jurisdiction over

18 matters relating to corporate subsidies.

19 (3) TIME OF APPOINTMENTS.—The appoint20 ments referred to in paragraph (1) shall be made

21 not later than 30 days after the first transmission

22 of recommendations under section 3(b)(1).

23 (b) VACANCIES.—Vacancies in the membership of the

24 Joint Committee shall not affect the power of the remain25 ing members to execute the functions of the Joint Com-
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1 mittee and shall be filled in the same manner as in the

2 case of the original appointment.

3 (c) CHAIRMAN AND VICE CHAIRMAN.—The Joint

4 Committee shall elect a chairman and vice chairman from

5 among its members at the beginning of each Congress in

6 which the Joint Committee exists. The vice chairman shall

7 be chosen from among the members of that House of Con8 gress other than the House of Congress of which the chair9 man is a member. The vice chairman shall act in the place

10 and stead of the chairman in the absence of the chairman.

11 (d) STAFF.—The Joint Committee is authorized to

12 appoint and fix the compensation of such professional and

13 clerical staff and such experts as it deems appropriate.

14 (e) LEGISLATIVE JURISDICTION AND POWERS.—

15 (1) LEGISLATIVE JURISDICTION.—Bills intro16 duced under section 4 and other bills and resolutions

17 which if enacted would accomplish the government18 wide reduction or elimination of corporate subsidies

19 shall be referred to the Joint Committee. The mem20 bers of the Joint Committee who are Members of the

21 Senate shall from time to time report to the Senate,

22 and the members of the Joint Committee who are

23 Members of the House of Representatives shall from

24 time to time report to the House of Representatives,

25 by bill or otherwise, their recommendations with re-
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1 spect to matters within the jurisdiction of their re2 spective Houses which are referred to the Joint

3 Committee.

4 (2) POWERS.—The Joint Committee, or any

5 duly authorized subcommittee thereof, is authorized

6 to sit and act at such places and times and to hold

7 such hearings as it deems appropriate. The Joint

8 Committee, or any duly authorized subcommittee

9 thereof, is authorized to require by subpoena (to be

10 issued under the signature of the chairman or vice

11 chairman) or otherwise the attendance of such wit12 nesses and the production of such books, papers,

13 and documents, to administer such oaths and affir14 mations, to take such testimony, to procure such

15 printing and binding, and to make such expenditures

16 as it deems advisable.

17 (f) HOUSE OF REPRESENTATIVES EXPENSES.—Not18 withstanding any law, rule, or other authority, there shall

19 be paid out of the applicable accounts of the House of

20 Representatives such sums as may be necessary for one21 half of the expenses of the Joint Committee. Such pay22 ments shall be made on vouchers signed by the House of

23 Representatives chairman or vice chairman of the Joint

24 Committee and approved in the manner directed by the

25 Committee on House Oversight of the House of Rep-
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1 resentatives. Amounts made available under this para2 graph shall be expended in accordance with regulations

3 prescribed by the Committee on House Oversight of the

4 House of Representatives.

5 SEC. 6. CONGRESSIONAL CONSIDERATION OF COMMISSION

6 REPORT.

7 (a) DISCHARGE OF CORPORATE SUBSIDY REDUC8 TION LEGISLATION.—If the Joint Committee has not re9 ported a bill introduced under section 4 by the end of the

10 20-day period beginning on the date of such introduction,

11 the Joint Committee shall be, at the end of such period,

12 discharged from further consideration of such bill, and

13 such bill shall be placed on the appropriate calendar of

14 the House involved.

15 (b) CONSIDERATION.—

16 (1) IN GENERAL.—On or after the third day

17 after the date on which the Joint Committee has re18 ported, or has been discharged (under subsection

19 (a)) from further consideration of, a bill introduced

20 under section 4, it is in order (even though a pre21 vious motion to the same effect has been disagreed

22 to) for any Member of the respective House to move

23 to proceed to the consideration of such bill (but only

24 on the day after the calendar day on which such

25 Member announces to the House concerned the
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1 Member’s intention to do so). All points of order

2 against the bill (and against consideration of the

3 bill) are waived. The motion is highly privileged in

4 the House of Representatives and is privileged in the

5 Senate and is not debatable. The motion is not sub6 ject to amendment, or to a motion to postpone, or

7 to a motion to proceed to the consideration of other

8 business. A motion to reconsider the vote by which

9 the motion is agreed to or disagreed to shall not be

10 in order. If a motion to proceed to the consideration

11 of the bill is agreed to, the respective House shall

12 immediately proceed to consideration of the bill with13 out intervening motion, order, or other business, and

14 the bill shall remain the unfinished business of the

15 respective House until disposed of.

16 (2) DEBATE, ETC.—Debate on the subsidy re17 duction bill, and on all debatable motions and ap18 peals in connection therewith, shall be limited to not

19 more than 2 hours, which shall be divided equally

20 between those favoring and those opposing the bill.

21 An amendment to the bill is not in order. A motion

22 further to limit debate is in order and not debatable.

23 A motion to postpone, or a motion to proceed to the

24 consideration of other business, or a motion to re25 commit the bill is not in order. A motion to recon-
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1 sider the vote by which the bill is agreed to or dis2 agreed to is not in order.

3 (3) VOTE.—Immediately following the conclu4 sion of the debate on the subsidy reduction bill and

5 a single quorum call at the conclusion of the debate

6 (if requested in accordance with the rules of the ap7 propriate House), the vote on final passage of the

8 bill shall occur.

9 (4) APPEALS.—Appeals from the decisions of

10 the Chair relating to the application of the rules of

11 the Senate or the House of Representatives, as the

12 case may be, to the procedure relating to the subsidy

13 reduction bill shall be decided without debate.

14 SEC. 7. AUTHORITY OF COMMISSION TO IMPLEMENT REC15 OMMENDATIONS UNLESS CONGRESS ACTS.

16 Notwithstanding any other provision of law, upon the

17 expiration of the 45-day period beginning on the later of

18 the date of the introduction of a bill under section 4 in

19 the House and the date of such introduction in the Senate,

20 the Commission shall have the authority to reduce or

21 eliminate any corporate subsidy identified under section

22 3(b) to the extent specified in the recommendations trans23 mitted under section 3(d), unless—
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1 (1) a Joint Resolution disapproving of all of

2 such recommendations becomes law before the expi3 ration of such period, or

4 (2) a bill introduced under section 4, a bill

5 which the Joint Committee reports under section

6 6(a), or a bill with respect to which the Joint Com7 mittee has been discharged under such section from

8 further consideration, becomes law before the expira9 tion of such period.

10 SEC. 8. RULES OF THE SENATE AND HOUSE.

11 Sections 5 and 6 are enacted by the Congress—

12 (1) as an exercise of the rulemaking power of

13 the Senate and House of Representatives, respec14 tively, and as such sections 5 and 6 are deemed a

15 part of the rules of each House, respectively, but ap16 plicable only with respect to the procedure to be fol17 lowed in that House in the case of the subsidy re18 duction bill, and such sections supersede other rules

19 only to the extent that such sections are inconsistent

20 with such rules; and

21 (2) with full recognition of the constitutional

22 right of either House to change the rules (so far as

23 relating to the procedure of that House) at any time,

24 in the same manner, and to the same extent as in

25 the case of any other rule of that House.
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1 SEC. 9. DEFINITIONS.

2 For purposes of this Act:

3 (1) CHAIRMAN.—The term ‘‘Chairman’’ means

4 the Chairman of the Corporate Independence Com5 mission.

6 (2) COMMISSION.—The term ‘‘Commission’’

7 means the Corporate Independence Commission.

8 (3) CORPORATE SUBSIDY.—The term ‘‘cor9 porate subsidy’’—

10 (A) includes spending subsidies (including

11 those for inland waterway operators), tax sub12 sidies, free or below-market-rate services, and

13 trade protections, which are provided by the

14 Federal government to or with respect to any

15 corporation, and

16 (B) does not include any subsidy, service,

17 or protection provided directly or indirectly by

18 the Federal government to any Federal entity,

19 Federal agency, government-sponsored enter20 prise, or Government corporation (as defined in

21 section 9101 of title 31, United States Code).

22 (4) GOVERNMENT-SPONSORED ENTERPRISE.—

23 The term ‘‘government-sponsored enterprise’’ means

24 the Federal National Mortgage Association, the Fed25 eral Home Loan Mortgage Corporation, the Federal

26 Home Loan Bank System, the Farm Credit Banks,
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1 the Banks for Cooperatives, the Federal Agricultural

2 Mortgage Corporation, the Student Loan Marketing

3 Association, the College Construction Loan Insur4 ance Association, and any of their affiliated or mem5 ber institutions.

6 (5) JOINT COMMITTEE.—The term ‘‘Joint Com7 mittee’’ means the Joint Committee on Corporate

8 Subsidy Reduction.

9 (6) SUBSIDY REDUCTION BILL.—The term

10 ‘‘subsidy reduction bill’’ means a bill introduced

11 under section 4 which the Joint Committee has re12 ported or with respect to which the Joint Committee

13 has been discharged under section 6(a) from further

14 consideration.

Æ