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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3136 Received in Senate (RDS)]

  2d Session
                                H. R. 3136

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 28, 1996

                                Received

_______________________________________________________________________

                                 AN ACT

 
 To provide for enactment of the Senior Citizens' Right to Work Act of 
    1996, the Line Item Veto Act, and the Small Business Growth and 
 Fairness Act of 1996, and to provide for a permanent increase in the 
                           public debt limit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Contract with America Advancement 
Act of 1996''.

        TITLE I--SOCIAL SECURITY EARNINGS LIMITATION AMENDMENTS

SEC. 101. SHORT TITLE OF TITLE.

    This title may be cited as the ``Senior Citizens' Right to Work Act 
of 1996''.

SEC. 102. INCREASES IN MONTHLY EXEMPT AMOUNT FOR PURPOSES OF THE SOCIAL 
              SECURITY EARNINGS LIMIT.

    (a) Increase in Monthly Exempt Amount for Individuals Who Have 
Attained Retirement Age.--Section 203(f)(8)(D) of the Social Security 
Act (42 U.S.C. 403(f)(8)(D)) is amended to read as follows:
            ``(D) Notwithstanding any other provision of this 
        subsection, the exempt amount which is applicable to an 
        individual who has attained retirement age (as defined in 
        section 216(l)) before the close of the taxable year involved 
        shall be--
                    ``(i) for each month of any taxable year ending 
                after 1995 and before 1997, $1,041.66\2/3\,
                    ``(ii) for each month of any taxable year ending 
                after 1996 and before 1998, $1,125.00,
                    ``(iii) for each month of any taxable year ending 
                after 1997 and before 1999, $1,208.33\1/3\,
                    ``(iv) for each month of any taxable year ending 
                after 1998 and before 2000, $1,291.66\2/3\,
                    ``(v) for each month of any taxable year ending 
                after 1999 and before 2001, $1,416.66\2/3\,
                    ``(vi) for each month of any taxable year ending 
                after 2000 and before 2002, $2,083.33\1/3\, and
                    ``(vii) for each month of any taxable year ending 
                after 2001 and before 2003, $2,500.00.''.
    (b) Conforming Amendments.--
            (1) Section 203(f)(8)(B)(ii) of such Act (42 U.S.C. 
        403(f)(8)(B)(ii)) is amended--
                    (A) by striking ``the taxable year ending after 
                1993 and before 1995'' and inserting ``the taxable year 
                ending after 2001 and before 2003 (with respect to 
                individuals described in subparagraph (D)) or the 
                taxable year ending after 1993 and before 1995 (with 
                respect to other individuals)''; and
                    (B) in subclause (II), by striking ``for 1992'' and 
                inserting ``for 2000 (with respect to individuals 
                described in subparagraph (D)) or 1992 (with respect to 
                other individuals)''.
            (2) The second sentence of section 223(d)(4)(A) of such Act 
        (42 U.S.C. 423(d)(4)(A)) is amended by striking ``the exempt 
        amount under section 203(f)(8) which is applicable to 
        individuals described in subparagraph (D) thereof'' and 
        inserting the following: ``an amount equal to the exempt amount 
        which would be applicable under section 203(f)(8), to 
        individuals described in subparagraph (D) thereof, if section 
        102 of the Senior Citizens' Right to Work Act of 1996 had not 
        been enacted''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years ending after 1995.

SEC. 103. CONTINUING DISABILITY REVIEWS.

    (a) Authorization for Appropriations for Continuing Disability 
Reviews.--Section 201(g)(1)(A) of the Social Security Act (42 U.S.C. 
401(g)(1)(A)) is amended by adding at the end the following: ``Of the 
amounts authorized to be made available out of the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal Disability Insurance 
Trust Fund under the preceding sentence, there are hereby authorized to 
be made available from either or both of such Trust Funds for 
continuing disability reviews--
            ``(i) for fiscal year 1996, $260,000,000;
            ``(ii) for fiscal year 1997, $360,000,000;
            ``(iii) for fiscal year 1998, $570,000,000;
            ``(iv) for fiscal year 1999, $720,000,000;
            ``(v) for fiscal year 2000, $720,000,000;
            ``(vi) for fiscal year 2001, $720,000,000; and
            ``(viii) for fiscal year 2002, $720,000,000.
For purposes of this subparagraph, the term `continuing disability 
review' means a review conducted pursuant to section 221(i) and a 
review or disability eligibility redetermination conducted to determine 
the continuing disability and eligibility of a recipient of benefits 
under the supplemental security income program under title XVI, 
including any review or redetermination conducted pursuant to section 
207 or 208 of the Social Security Independence and Program Improvements 
Act of 1994 (Public Law 103-296).''.
    (b) Adjustment to Discretionary Spending Limits.--Section 251(b)(2) 
of the Balanced Budget and Emergency Deficit Control Act of 1985 is 
amended by adding the following new subparagraph:
                    ``(H) Continuing disability reviews.--(i) Whenever 
                a bill or joint resolution making appropriations for 
                fiscal year 1996, 1997, 1998, 1999, 2000, 2001, or 2002 
                is enacted that specifies an amount for continuing 
                disability reviews under the heading `Limitation on 
                Administrative Expenses' for the Social Security 
                Administration, the adjustments for that fiscal year 
                shall be the additional new budget authority provided 
                in that Act for such reviews for that fiscal year and 
                the additional outlays flowing from such amounts, but 
                shall not exceed--
                            ``(I) for fiscal year 1996, $15,000,000 in 
                        additional new budget authority and $60,000,000 
                        in additional outlays;
                            ``(II) for fiscal year 1997, $25,000,000 in 
                        additional new budget authority and 
                        $160,000,000 in additional outlays;
                            ``(III) for fiscal year 1998, $145,000,000 
                        in additional new budget authority and 
                        $370,000,000 in additional outlays;
                            ``(IV) for fiscal year 1999, $280,000,000 
                        in additional new budget authority and 
                        $520,000,000 in additional outlays;
                            ``(V) for fiscal year 2000, $317,500,000 in 
                        additional new budget authority and 
                        $520,000,000 in additional outlays;
                            ``(VI) for fiscal year 2001, $317,500,000 
                        in additional new budget authority and 
                        $520,000,000 in additional outlays; and
                            ``(VII) for fiscal year 2002, $317,500,000 
                        in additional new budget authority and 
                        $520,000,000 in additional outlays.
                    ``(ii) As used in this subparagraph--
                            ``(I) the term `continuing disability 
                        reviews' has the meaning given such term by 
                        section 201(g)(1)(A) of the Social Security 
                        Act;
                            ``(II) the term `additional new budget 
                        authority' means new budget authority provided 
                        for a fiscal year, in excess of $100,000,000, 
                        for the Supplemental Security Income program 
                        and specified to pay for the costs of 
                        continuing disability reviews attributable to 
                        the Supplemental Security Income program; and
                            ``(III) the term `additional outlays' means 
                        outlays, in excess of $200,000,000 in a fiscal 
                        year, flowing from the amounts specified for 
                        continuing disability reviews under the heading 
                        `Limitation on Administrative Expenses' for the 
                        Social Security Administration, including 
                        outlays in that fiscal year flowing from 
                        amounts specified in Acts enacted for prior 
                        fiscal years (but not before 1996).''.
    (c) Budget Allocation Adjustment by Budget Committee.--Section 606 
of the Congressional Budget and Impoundment Control Act of 1974 is 
amended by adding the following new subsection:
    ``(e) Continuing Disability Review Adjustment.--
            ``(1) In general.--(A) For fiscal year 1996, upon the 
        enactment of the Contract with America Advancement Act of 1996, 
        the Chairmen of the Committees on the Budget of the Senate and 
        House of Representatives shall make the adjustments referred to 
        in subparagraph (C) to reflect $15,000,000 in additional new 
        budget authority and $60,000,000 in additional outlays for 
        continuing disability reviews (as defined in section 
        201(g)(1)(A) of the Social Security Act).
            ``(B) When the Committee on Appropriations reports an 
        appropriations measure for fiscal year 1997, 1998, 1999, 2000, 
        2001, or 2002 that specifies an amount for continuing 
        disability reviews under the heading `Limitation on 
        Administrative Expenses' for the Social Security 
        Administration, or when a conference committee submits a 
        conference report thereon, the Chairman of the Committee on the 
        Budget of the Senate or House of Representatives (whichever is 
        appropriate) shall make the adjustments referred to in 
        subparagraph (C) to reflect the additional new budget authority 
        for continuing disability reviews provided in that measure or 
        conference report and the additional outlays flowing from such 
        amounts for continuing disability reviews.
            ``(C) The adjustments referred to in this subparagraph 
        consist of adjustments to--
                    ``(i) the discretionary spending limits for that 
                fiscal year as set forth in the most recently adopted 
                concurrent resolution on the budget;
                    ``(ii) the allocations to the Committees on 
                Appropriations of the Senate and the House of 
                Representatives for that fiscal year under sections 
                302(a) and 602(a); and
                    ``(iii) the appropriate budgetary aggregates for 
                that fiscal year in the most recently adopted 
                concurrent resolution on the budget.
            ``(D) The adjustments under this paragraph for any fiscal 
        year shall not exceed the levels set forth in section 
        251(b)(2)(H) of the Balanced Budget and Emergency Deficit 
        Control Act of 1985 for that fiscal year. The adjusted 
        discretionary spending limits, allocations, and aggregates 
        under this paragraph shall be considered the appropriate 
        limits, allocations, and aggregates for purposes of 
        congressional enforcement of this Act and concurrent budget 
        resolutions under this Act.
            ``(2) Reporting revised suballocations.--Following the 
        adjustments made under paragraph (1), the Committees on 
        Appropriations of the Senate and the House of Representatives 
        may report appropriately revised suballocations pursuant to 
        sections 302(b) and 602(b) of this Act to carry out this 
        subsection.
            ``(3) Definitions.--As used in this section, the terms 
        `continuing disability reviews', `additional new budget 
        authority', and `additional outlays' shall have the same 
        meanings as provided in section 251(b)(2)(H)(ii) of the 
        Balanced Budget and Emergency Deficit Control Act of 1985.''.
    (d) Use of Funds and Reports.--
            (1) In general.--The Commissioner of Social Security shall 
        ensure that funds made available for continuing disability 
        reviews (as defined in section 201(g)(1)(A) of the Social 
        Security Act) are used, to the greatest extent practicable, to 
        maximize the combined savings in the old-age, survivors, and 
        disability insurance, supplemental security income, medicare, 
        and medicaid programs.
            (2) Report.--The Commissioner of Social Security shall 
        provide annually (at the conclusion of each of the fiscal years 
        1996 through 2002) to the Congress a report on continuing 
        disability reviews which includes--
                    (A) the amount spent on continuing disability 
                reviews in the fiscal year covered by the report, and 
                the number of reviews conducted, by category of review;
                    (B) the results of the continuing disability 
                reviews in terms of cessations of benefits or 
                determinations of continuing eligibility, by program; 
                and
                    (C) the estimated savings over the short-, medium-, 
                and long-term to the old-age, survivors, and disability 
                insurance, supplemental security income, medicare, and 
                medicaid programs from continuing disability reviews 
                which result in cessations of benefits and the 
                estimated present value of such savings.
    (e) Office of Chief Actuary in the Social Security 
Administration.--
            (1) In general.--Section 702 of the Social Security Act (42 
        U.S.C. 902) is amended--
                    (A) by redesignating subsections (c) and (d) as 
                subsections (d) and (e), respectively; and
                    (B) by inserting after subsection (b) the following 
                new subsection:

                            ``Chief Actuary

    ``(c)(1) There shall be in the Administration a Chief Actuary, who 
shall be appointed by, and in direct line of authority to, the 
Commissioner. The Chief Actuary shall be appointed from individuals who 
have demonstrated, by their education and experience, superior 
expertise in the actuarial sciences. The Chief Actuary shall serve as 
the chief actuarial officer of the Administration, and shall exercise 
such duties as are appropriate for the office of the Chief Actuary and 
in accordance with professional standards of actuarial independence. 
The Chief Actuary may be removed only for cause.
    ``(2) The Chief Actuary shall be compensated at the highest rate of 
basic pay for the Senior Executive Service under section 5382(b) of 
title 5, United States Code.''.
            (2) Effective date of subsection.--The amendments made by 
        this subsection shall take effect on the date of the enactment 
        of this Act.

SEC. 104. ENTITLEMENT OF STEPCHILDREN TO CHILD'S INSURANCE BENEFITS 
              BASED ON ACTUAL DEPENDENCY ON STEPPARENT SUPPORT.

    (a) Requirement of Actual Dependency for Future Entitlements.--
            (1) In general.--Section 202(d)(4) of the Social Security 
        Act (42 U.S.C. 402(d)(4)) is amended by striking ``was living 
        with or''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to benefits of individuals who become 
        entitled to such benefits for months after the third month 
        following the month in which this Act is enacted.
    (b) Termination of Child's Insurance Benefits Based on Work Record 
of Stepparent Upon Natural Parent's Divorce From Stepparent.--
            (1) In general.--Section 202(d)(1) of the Social Security 
        Act (42 U.S.C. 402(d)(1)) is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (F);
                    (B) by striking the period at the end of 
                subparagraph (G) and inserting ``; or''; and
                    (C) by inserting after subparagraph (G) the 
                following new subparagraph:
            ``(H) if the benefits under this subsection are based on 
        the wages and self-employment income of a stepparent who is 
        subsequently divorced from such child's natural parent, the 
        month after the month in which such divorce becomes final.''.
            (2) Notification.--Section 202(d) of such Act (42 U.S.C. 
        402(d)) is amended by adding the following new paragraph:
    ``(10) For purposes of paragraph (1)(H)--
            ``(A) each stepparent shall notify the Commissioner of 
        Social Security of any divorce upon such divorce becoming 
        final; and
            ``(B) the Commissioner shall annually notify any stepparent 
        of the rule for termination described in paragraph (1)(H) and 
        of the requirement described in subparagraph (A).''.
            (3) Effective dates.--
                    (A) The amendments made by paragraph (1) shall 
                apply with respect to final divorces occurring after 
                the third month following the month in which this Act 
                is enacted.
                    (B) The amendment made by paragraph (2) shall take 
                effect on the date of the enactment of this Act.

SEC. 105. DENIAL OF DISABILITY BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.

    (a) Amendments Relating to Title II Disability Benefits.--
            (1) In general.--Section 223(d)(2) of the Social Security 
        Act (42 U.S.C. 423(d)(2)) is amended by adding at the end the 
        following:
            ``(C) An individual shall not be considered to be disabled 
        for purposes of this title if alcoholism or drug addiction 
        would (but for this subparagraph) be a contributing factor 
        material to the Commissioner's determination that the 
        individual is disabled.''.
            (2) Representative payee requirements.--
                    (A) Section 205(j)(1)(B) of such Act (42 U.S.C. 
                405(j)(1)(B)) is amended to read as follows:
    ``(B) In the case of an individual entitled to benefits based on 
disability, the payment of such benefits shall be made to a 
representative payee if the Commissioner of Social Security determines 
that such payment would serve the interest of the individual because 
the individual also has an alcoholism or drug addiction condition (as 
determined by the Commissioner) and the individual is incapable of 
managing such benefits.''.
                    (B) Section 205(j)(2)(C)(v) of such Act (42 U.S.C. 
                405(j)(2)(C)(v)) is amended by striking ``entitled to 
                benefits'' and all that follows through ``under a 
                disability'' and inserting ``described in paragraph 
                (1)(B)''.
                    (C) Section 205(j)(2)(D)(ii)(II) of such Act (42 
                U.S.C. 405(j)(2)(D)(ii)(II)) is amended by striking all 
                that follows ``15 years, or'' and inserting ``described 
                in paragraph (1)(B).''.
                    (D) Section 205(j)(4)(A)(i)(II) of such Act (42 
                U.S.C. 405(j)(4)(A)(ii)(II)) is amended by striking 
                ``entitled to benefits'' and all that follows through 
                ``under a disability'' and inserting ``described in 
                paragraph (1)(B)''.
            (3) Treatment referrals for individuals with an alcoholism 
        or drug addiction condition.--Section 222 of such Act (42 
        U.S.C. 422) is amended by adding at the end the following new 
        subsection:

   ``Treatment Referrals for Individuals with an Alcoholism or Drug 
                          Addiction Condition

    ``(e) In the case of any individual whose benefits under this title 
are paid to a representative payee pursuant to section 205(j)(1)(B), 
the Commissioner of Social Security shall refer such individual to the 
appropriate State agency administering the State plan for substance 
abuse treatment services approved under subpart II of part B of title 
XIX of the Public Health Service Act (42 U.S.C. 300x-21 et seq.).''.
            (4) Conforming amendment.--Subsection (c) of section 225 of 
        such Act (42 U.S.C. 425(c)) is repealed.
            (5) Effective dates.--
                    (A) The amendments made by paragraphs (1) and (4) 
                shall apply to any individual who applies for, or whose 
                claim is finally adjudicated by the Commissioner of 
                Social Security with respect to, benefits under title 
                II of the Social Security Act based on disability on or 
                after the date of the enactment of this Act, and, in 
                the case of any individual who has applied for, and 
                whose claim has been finally adjudicated by the 
                Commissioner with respect to, such benefits before such 
                date of enactment, such amendments shall apply only 
                with respect to such benefits for months beginning on 
                or after January 1, 1997.
                    (B) The amendments made by paragraphs (2) and (3) 
                shall apply with respect to benefits for which 
                applications are filed after the third month following 
                the month in which this Act is enacted.
                    (C) Within 90 days after the date of the enactment 
                of this Act, the Commissioner of Social Security shall 
                notify each individual who is entitled to monthly 
                insurance benefits under title II of the Social 
                Security Act based on disability for the month in which 
                this Act is enacted and whose entitlement to such 
                benefits would terminate by reason of the amendments 
                made by this subsection. If such an individual 
                reapplies for benefits under title II of such Act (as 
                amended by this Act) based on disability within 120 
                days after the date of the enactment of this Act, the 
                Commissioner of Social Security shall, not later than 
                January 1, 1997, complete the entitlement 
                redetermination (including a new medical determination) 
                with respect to such individual pursuant to the 
                procedures of such title.
    (b) Amendments Relating to SSI Benefits.--
            (1) In general.--Section 1614(a)(3) of the Social Security 
        Act (42 U.S.C. 1382c(a)(3)) is amended by adding at the end the 
        following:
    ``(I) Notwithstanding subparagraph (A), an individual shall not be 
considered to be disabled for purposes of this title if alcoholism or 
drug addiction would (but for this subparagraph) be a contributing 
factor material to the Commissioner's determination that the individual 
is disabled.''.
            (2) Representative payee requirements.--
                    (A) Section 1631(a)(2)(A)(ii)(II) of such Act (42 
                U.S.C. 1383(a)(2)(A)(ii)(II)) is amended to read as 
                follows:
    ``(II) In the case of an individual eligible for benefits under 
this title by reason of disability, the payment of such benefits shall 
be made to a representative payee if the Commissioner of Social 
Security determines that such payment would serve the interest of the 
individual because the individual also has an alcoholism or drug 
addiction condition (as determined by the Commissioner) and the 
individual is incapable of managing such benefits.''.
                    (B) Section 1631(a)(2)(B)(vii) of such Act (42 
                U.S.C. 1383(a)(2)(B)(vii)) is amended by striking 
                ``eligible for benefits'' and all that follows through 
                ``is disabled'' and inserting ``described in 
                subparagraph (A)(ii)(II)''.
                    (C) Section 1631(a)(2)(B)(ix)(II) of such Act (42 
                U.S.C. 1383(a)(2)(B)(ix)(II)) is amended by striking 
                all that follows ``15 years, or'' and inserting 
                ``described in subparagraph (A)(ii)(II).''.
                    (D) Section 1631(a)(2)(D)(i)(II) of such Act (42 
                U.S.C. 1383(a)(2)(D)(i)(II)) is amended by striking 
                ``eligible for benefits'' and all that follows through 
                ``is disabled'' and inserting ``described in 
                subparagraph (A)(ii)(II)''.
            (3) Treatment referrals for individuals with an alcoholism 
        or drug addiction condition.--Title XVI of such Act (42 U.S.C. 
        1381 et seq.) is amended by adding at the end the following new 
        section:

   ``treatment referrals for individuals with an alcoholism or drug 
                          addiction condition

    ``Sec. 1636. In the case of any individual whose benefits under 
this title are paid to a representative payee pursuant to section 
1631(a)(2)(A)(ii)(II), the Commissioner of Social Security shall refer 
such individual to the appropriate State agency administering the State 
plan for substance abuse treatment services approved under subpart II 
of part B of title XIX of the Public Health Service Act (42 U.S.C. 
300x-21 et seq.).''.
            (4) Conforming amendments.--
                    (A) Section 1611(e) of such Act (42 U.S.C. 1382(e)) 
                is amended by striking paragraph (3).
                    (B) Section 1634 of such Act (42 U.S.C. 1383c) is 
                amended by striking subsection (e).
            (5) Effective dates.--
                    (A) The amendments made by paragraphs (1) and (4) 
                shall apply to any individual who applies for, or whose 
                claim is finally adjudicated by the Commissioner of 
                Social Security with respect to, supplemental security 
                income benefits under title XVI of the Social Security 
                Act based on disability on or after the date of the 
                enactment of this Act, and, in the case of any 
                individual who has applied for, and whose claim has 
                been finally adjudicated by the Commissioner with 
                respect to, such benefits before such date of 
                enactment, such amendments shall apply only with 
                respect to such benefits for months beginning on or 
                after January 1, 1997.
                    (B) The amendments made by paragraphs (2) and (3) 
                shall apply with respect to supplemental security 
                income benefits under title XVI of the Social Security 
                Act for which applications are filed after the third 
                month following the month in which this Act is enacted.
                    (C) Within 90 days after the date of the enactment 
                of this Act, the Commissioner of Social Security shall 
                notify each individual who is eligible for supplemental 
                security income benefits under title XVI of the Social 
                Security Act for the month in which this Act is enacted 
                and whose eligibility for such benefits would terminate 
                by reason of the amendments made by this subsection. If 
                such an individual reapplies for supplemental security 
                income benefits under title XVI of such Act (as amended 
                by this Act) within 120 days after the date of the 
                enactment of this Act, the Commissioner of Social 
                Security shall, not later than January 1, 1997, 
                complete the eligibility redetermination (including a 
                new medical determination) with respect to such 
                individual pursuant to the procedures of such title.
                    (D) For purposes of this paragraph, the phrase 
                ``supplemental security income benefits under title XVI 
                of the Social Security Act'' includes supplementary 
                payments pursuant to an agreement for Federal 
                administration under section 1616(a) of the Social 
                Security Act and payments pursuant to an agreement 
                entered into under section 212(b) of Public Law 93-66.
    (c) Conforming Amendment.--Section 201(c) of the Social Security 
Independence and Program Improvements Act of 1994 (42 U.S.C. 425 note) 
is repealed.
    (d) Supplemental Funding for Alcohol and Substance Abuse Treatment 
Programs.--
            (1) In general.--Out of any money in the Treasury not 
        otherwise appropriated, there are hereby appropriated to 
        supplement State and Tribal programs funded under section 1933 
        of the Public Health Service Act (42 U.S.C. 300x-33), 
        $50,000,000 for each of the fiscal years 1997 and 1998.
            (2) Additional funds.--Amounts appropriated under paragraph 
        (1) shall be in addition to any funds otherwise appropriated 
        for allotments under section 1933 of the Public Health Service 
        Act (42 U.S.C. 300x-33) and shall be allocated pursuant to such 
        section 1933.
            (3) Use of Funds.--A State or Tribal government receiving 
        an allotment under this subsection shall consider as 
        priorities, for purposes of expending funds allotted under this 
        subsection, activities relating to the treatment of the abuse 
        of alcohol and other drugs.

SEC. 106. PILOT STUDY OF EFFICACY OF PROVIDING INDIVIDUALIZED 
              INFORMATION TO RECIPIENTS OF OLD-AGE AND SURVIVORS 
              INSURANCE BENEFITS.

    (a) In General.--During a 2-year period beginning as soon as 
practicable in 1996, the Commissioner of Social Security shall conduct 
a pilot study of the efficacy of providing certain individualized 
information to recipients of monthly insurance benefits under section 
202 of the Social Security Act, designed to promote better 
understanding of their contributions and benefits under the social 
security system. The study shall involve solely beneficiaries whose 
entitlement to such benefits first occurred in or after 1984 and who 
have remained entitled to such benefits for a continuous period of not 
less than 5 years. The number of such recipients involved in the study 
shall be of sufficient size to generate a statistically valid sample 
for purposes of the study, but shall not exceed 600,000 beneficiaries.
    (b) Annualized Statements.--During the course of the study, the 
Commissioner shall provide to each of the beneficiaries involved in the 
study one annualized statement, setting forth the following 
information:
            (1) an estimate of the aggregate wages and self-employment 
        income earned by the individual on whose wages and self-
        employment income the benefit is based, as shown on the records 
        of the Commissioner as of the end of the last calendar year 
        ending prior to the beneficiary's first month of entitlement;
            (2) an estimate of the aggregate of the employee and self-
        employment contributions, and the aggregate of the employer 
        contributions (separately identified), made with respect to the 
        wages and self-employment income on which the benefit is based, 
        as shown on the records of the Commissioner as of the end of 
        the calendar year preceding the beneficiary's first month of 
        entitlement; and
            (3) an estimate of the total amount paid as benefits under 
        section 202 of the Social Security Act based on such wages and 
        self-employment income, as shown on the records of the 
        Commissioner as of the end of the last calendar year preceding 
        the issuance of the statement for which complete information is 
        available.
    (c) Inclusion With Matter Otherwise Distributed to Beneficiaries.--
The Commissioner shall ensure that reports provided pursuant to this 
section are, to the maximum extent practicable, included with other 
reports currently provided to beneficiaries on an annual basis.
    (d) Report to the Congress.--The Commissioner shall report to each 
House of the Congress regarding the results of the pilot study 
conducted pursuant to this section not later than 60 days after the 
completion of such study.

SEC. 107. PROTECTION OF SOCIAL SECURITY AND MEDICARE TRUST FUNDS.

    (a) In General.--Part A of title XI of the Social Security Act (42 
U.S.C. 1301 et seq.) is amended by adding at the end the following new 
section:

        ``protection of social security and medicare trust funds

    ``Sec. 1145. (a) In General.--No officer or employee of the United 
States shall--
            ``(1) delay the deposit of any amount into (or delay the 
        credit of any amount to) any Federal fund or otherwise vary 
        from the normal terms, procedures, or timing for making such 
        deposits or credits,
            ``(2) refrain from the investment in public debt 
        obligations of amounts in any Federal fund, or
            ``(3) redeem prior to maturity amounts in any Federal fund 
        which are invested in public debt obligations for any purpose 
        other than the payment of benefits or administrative expenses 
        from such Federal fund.
    ``(b) Public Debt Obligation.--For purposes of this section, the 
term `public debt obligation' means any obligation subject to the 
public debt limit established under section 3101 of title 31, United 
States Code.
    ``(c) Federal Fund.--For purposes of this section, the term 
`Federal fund' means--
            ``(1) the Federal Old-Age and Survivors Insurance Trust 
        Fund;
            ``(2) the Federal Disability Insurance Trust Fund;
            ``(3) the Federal Hospital Insurance Trust Fund; and
            ``(4) the Federal Supplementary Medical Insurance Trust 
        Fund.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 108. PROFESSIONAL STAFF FOR THE SOCIAL SECURITY ADVISORY BOARD.

      Section 703(i) of the Social Security Act (42 U.S.C. 903(i)) is 
amended in the first sentence by inserting after ``Staff Director'' the 
following: ``, and three professional staff members one of whom shall 
be appointed from among individuals approved by the members of the 
Board who are not members of the political party represented by the 
majority of the Board,''.

              TITLE II--SMALL BUSINESS REGULATORY FAIRNESS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Small Business Regulatory 
Enforcement Fairness Act of 1996''.

SEC. 202. FINDINGS.

    Congress finds that--
            (1) a vibrant and growing small business sector is critical 
        to creating jobs in a dynamic economy;
            (2) small businesses bear a disproportionate share of 
        regulatory costs and burdens;
            (3) fundamental changes that are needed in the regulatory 
        and enforcement culture of Federal agencies to make agencies 
        more responsive to small business can be made without 
        compromising the statutory missions of the agencies;
            (4) three of the top recommendations of the 1995 White 
        House Conference on Small Business involve reforms to the way 
        government regulations are developed and enforced, and 
        reductions in government paperwork requirements;
            (5) the requirements of chapter 6 of title 5, United States 
        Code, have too often been ignored by government agencies, 
        resulting in greater regulatory burdens on small entities than 
        necessitated by statute; and
            (6) small entities should be given the opportunity to seek 
        judicial review of agency actions required by chapter 6 of 
        title 5, United States Code.

 SEC. 203. PURPOSES.

    The purposes of this title are--
            (1) to implement certain recommendations of the 1995 White 
        House Conference on Small Business regarding the development 
        and enforcement of Federal regulations;
            (2) to provide for judicial review of chapter 6 of title 5, 
        United States Code;
            (3) to encourage the effective participation of small 
        businesses in the Federal regulatory process;
            (4) to simplify the language of Federal regulations 
        affecting small businesses;
            (5) to develop more accessible sources of information on 
        regulatory and reporting requirements for small businesses;
            (6) to create a more cooperative regulatory environment 
        among agencies and small businesses that is less punitive and 
        more solution-oriented; and
            (7) to make Federal regulators more accountable for their 
        enforcement actions by providing small entities with a 
        meaningful opportunity for redress of excessive enforcement 
        activities.

            Subtitle A--Regulatory Compliance Simplification

 SEC. 211. DEFINITIONS.

    For purposes of this subtitle--
            (1) the terms ``rule'' and ``small entity'' have the same 
        meanings as in section 601 of title 5, United States Code;
            (2) the term ``agency'' has the same meaning as in section 
        551 of title 5, United States Code; and
            (3) the term ``small entity compliance guide'' means a 
        document designated as such by an agency.

 SEC. 212. COMPLIANCE GUIDES.

    (a) Compliance Guide.--For each rule or group of related rules for 
which an agency is required to prepare a final regulatory flexibility 
analysis under section 604 of title 5, United States Code, the agency 
shall publish one or more guides to assist small entities in complying 
with the rule, and shall designate such publications as ``small entity 
compliance guides''. The guides shall explain the actions a small 
entity is required to take to comply with a rule or group of rules. The 
agency shall, in its sole discretion, taking into account the subject 
matter of the rule and the language of relevant statutes, ensure that 
the guide is written using sufficiently plain language likely to be 
understood by affected small entities. Agencies may prepare separate 
guides covering groups or classes of similarly affected small entities, 
and may cooperate with associations of small entities to develop and 
distribute such guides.
    (b) Comprehensive Source of Information.--Agencies shall cooperate 
to make available to small entities through comprehensive sources of 
information, the small entity compliance guides and all other available 
information on statutory and regulatory requirements affecting small 
entities.
    (c) Limitation on Judicial Review.--An agency's small entity 
compliance guide shall not be subject to judicial review, except that 
in any civil or administrative action against a small entity for a 
violation occurring after the effective date of this section, the 
content of the small entity compliance guide may be considered as 
evidence of the reasonableness or appropriateness of any proposed 
fines, penalties or damages.

 SEC. 213. INFORMAL SMALL ENTITY GUIDANCE.

    (a) General.--Whenever appropriate in the interest of administering 
statutes and regulations within the jurisdiction of an agency which 
regulates small entities, it shall be the practice of the agency to 
answer inquiries by small entities concerning information on, and 
advice about, compliance with such statutes and regulations, 
interpreting and applying the law to specific sets of facts supplied by 
the small entity. In any civil or administrative action against a small 
entity, guidance given by an agency applying the law to facts provided 
by the small entity may be considered as evidence of the reasonableness 
or appropriateness of any proposed fines, penalties or damages sought 
against such small entity.
    (b) Program.--Each agency regulating the activities of small 
entities shall establish a program for responding to such inquiries no 
later than 1 year after enactment of this section, utilizing existing 
functions and personnel of the agency to the extent practicable.
    (c) Reporting.--Each agency regulating the activities of small 
business shall report to the Committee on Small Business and Committee 
on Governmental Affairs of the Senate and the Committee on Small 
Business and Committee on the Judiciary of the House of Representatives 
no later than 2 years after the date of the enactment of this section 
on the scope of the agency's program, the number of small entities 
using the program, and the achievements of the program to assist small 
entity compliance with agency regulations.

 SEC. 214. SERVICES OF SMALL BUSINESS DEVELOPMENT CENTERS.

    (a) Section 21(c)(3) of the Small Business Act (15 U.S.C. 
648(c)(3)) is amended--
            (1) in subparagraph (O), by striking ``and'' at the end;
            (2) in subparagraph (P), by striking the period at the end 
        and inserting a semicolon; and
            (3) by inserting after subparagraph (P) the following new 
        subparagraphs:
                    ``(Q) providing information to small business 
                concerns regarding compliance with regulatory 
                requirements; and
                    ``(R) developing informational publications, 
                establishing resource centers of reference materials, 
                and distributing compliance guides published under 
                section 312(a) of the Small Business Regulatory 
                Enforcement Fairness Act of 1996.''.
    (b) Nothing in this Act in any way affects or limits the ability of 
other technical assistance or extension programs to perform or continue 
to perform services related to compliance assistance.

SEC. 215. COOPERATION ON GUIDANCE.

    Agencies may, to the extent resources are available and where 
appropriate, in cooperation with the states, develop guides that fully 
integrate requirements of both Federal and state regulations where 
regulations within an agency's area of interest at the Federal and 
state levels impact small entities. Where regulations vary among the 
states, separate guides may be created for separate states in 
cooperation with State agencies.

SEC. 216. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect on the expiration of 90 days after the date of enactment of this 
subtitle.

               Subtitle B--Regulatory Enforcement Reforms

 SEC. 221. DEFINITIONS.

    For purposes of this subtitle--
            (1) the terms ``rule'' and ``small entity'' have the same 
        meanings as in section 601 of title 5, United States Code;
            (2) the term ``agency'' has the same meaning as in section 
        551 of title 5, United States Code; and
            (3) the term ``small entity compliance guide'' means a 
        document designated as such by an agency.

 SEC. 222. SMALL BUSINESS AND AGRICULTURE ENFORCEMENT OMBUDSMAN.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 30 as section 31; and
            (2) by inserting after section 29 the following new 
        section:

``SEC. 30. OVERSIGHT OF REGULATORY ENFORCEMENT.

    ``(a) Definitions.--For purposes of this section, the term--
            ``(1) ``Board'' means a Regional Small Business Regulatory 
        Fairness Board established under subsection (c); and
            ``(2) ``Ombudsman'' means the Small Business and 
        Agriculture Regulatory Enforcement Ombudsman designated under 
        subsection (b).
    ``(b) SBA Enforcement Ombudsman.--
            ``(1) Not later than 180 days after the date of enactment 
        of this section, the Administrator shall designate a Small 
        Business and Agriculture Regulatory Enforcement Ombudsman, who 
        shall report directly to the Administrator, utilizing personnel 
        of the Small Business Administration to the extent practicable. 
        Other agencies shall assist the Ombudsman and take actions as 
        necessary to ensure compliance with the requirements of this 
        section. Nothing in this section is intended to replace or 
        diminish the activities of any Ombudsman or similar office in 
        any other agency.
            ``(2) The Ombudsman shall--
                    ``(A) work with each agency with regulatory 
                authority over small businesses to ensure that small 
                business concerns that receive or are subject to an 
                audit, on-site inspection, compliance assistance 
                effort, or other enforcement related communication or 
                contact by agency personnel are provided with a means 
                to comment on the enforcement activity conducted by 
                such personnel;
                    ``(B) establish means to receive comments from 
                small business concerns regarding actions by agency 
                employees conducting compliance or enforcement 
                activities with respect to the small business concern, 
                means to refer comments to the Inspector General of the 
                affected agency in the appropriate circumstances, and 
                otherwise seek to maintain the identity of the person 
                and small business concern making such comments on a 
                confidential basis to the same extent as employee 
                identities are protected under section 7 of the 
                Inspector General Act of 1978 (5 U.S.C.App.);
                    ``(C) based on substantiated comments received from 
                small business concerns and the Boards, annually report 
                to Congress and affected agencies evaluating the 
                enforcement activities of agency personnel including a 
                rating of the responsiveness to small business of the 
                various regional and program offices of each agency;
                    ``(D) coordinate and report annually on the 
                activities, findings and recommendations of the Boards 
                to the Administrator and to the heads of affected 
                agencies; and
                    ``(E) provide the affected agency with an 
                opportunity to comment on draft reports prepared under 
                subparagraph (C), and include a section of the final 
                report in which the affected agency may make such 
                comments as are not addressed by the Ombudsman in 
                revisions to the draft.
    ``(c) Regional Small Business Regulatory Fairness Boards.--
            ``(1) Not later than 180 days after the date of enactment 
        of this section, the Administrator shall establish a Small 
        Business Regulatory Fairness Board in each regional office of 
        the Small Business Administration.
            ``(2) Each Board established under paragraph (1) shall--
                    ``(A) meet at least annually to advise the 
                Ombudsman on matters of concern to small businesses 
                relating to the enforcement activities of agencies;
                    ``(B) report to the Ombudsman on substantiated 
                instances of excessive enforcement actions of agencies 
                against small business concerns including any findings 
                or recommendations of the Board as to agency 
                enforcement policy or practice; and
                    ``(C) prior to publication, provide comment on the 
                annual report of the Ombudsman prepared under 
                subsection (b).
            ``(3) Each Board shall consist of five members, who are 
        owners, operators, or officers of small business concerns, 
        appointed by the Administrator, after receiving the 
        recommendations of the chair and ranking minority member of the 
        Committees on Small Business of the House of Representatives 
        and the Senate. Not more than three of the Board members shall 
        be of the same political party. No member shall be an officer 
        or employee of the Federal Government, in either the executive 
        branch or the Congress.
            ``(4) Members of the Board shall serve at the pleasure of 
        the Administrator for terms of three years or less.
            ``(5) The Administrator shall select a chair from among the 
        members of the Board who shall serve at the pleasure of the 
        Administrator for not more than 1 year as chair.
            ``(6) A majority of the members of the Board shall 
        constitute a quorum for the conduct of business, but a lesser 
        number may hold hearings.
    ``(d) Powers of the Boards.
            ``(1) The Board may hold such hearings and collect such 
        information as appropriate for carrying out this section.
            ``(2) The Board may use the United States mails in the same 
        manner and under the same conditions as other departments and 
        agencies of the Federal Government.
            ``(3) The Board may accept donations of services necessary 
        to conduct its business, provided that the donations and their 
        sources are disclosed by the Board.
            ``(4) Members of the Board shall serve without 
        compensation, provided that, members of the Board shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Board.''.

 SEC. 223. RIGHTS OF SMALL ENTITIES IN ENFORCEMENT ACTIONS.

    (a) In General.--Each agency regulating the activities of small 
entities shall establish a policy or program within 1 year of enactment 
of this section to provide for the reduction, and under appropriate 
circumstances for the waiver, of civil penalties for violations of a 
statutory or regulatory requirement by a small entity. Under 
appropriate circumstances, an agency may consider ability to pay in 
determining penalty assessments on small entities.
    (b) Conditions and Exclusions.--Subject to the requirements or 
limitations of other statutes, policies or programs established under 
this section shall contain conditions or exclusions which may include, 
but shall not be limited to--
            (1) requiring the small entity to correct the violation 
        within a reasonable correction period;
            (2) limiting the applicability to violations discovered 
        through participation by the small entity in a compliance 
        assistance or audit program operated or supported by the agency 
        or a state;
            (3) excluding small entities that have been subject to 
        multiple enforcement actions by the agency;
            (4) excluding violations involving willful or criminal 
        conduct;
            (5) excluding violations that pose serious health, safety 
        or environmental threats; and
            (6) requiring a good faith effort to comply with the law.
    (c) Reporting.--Agencies shall report to the Committee on Small 
Business and Committee on Governmental Affairs of the Senate and the 
Committee on Small Business and Committee on Judiciary of the House of 
Representatives no later than 2 years after the date of enactment of 
this section on the scope of their program or policy, the number of 
enforcement actions against small entities that qualified or failed to 
qualify for the program or policy, and the total amount of penalty 
reductions and waivers.

SEC. 224. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect on the expiration of 90 days after the date of enactment of this 
subtitle.

           Subtitle C--Equal Access to Justice Act Amendments

SEC. 231. ADMINISTRATIVE PROCEEDINGS.

    (a) Section 504(a) of title 5, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(4) If, in an adversary adjudication arising from an agency 
action to enforce a party's compliance with a statutory or regulatory 
requirement, the demand by the agency is substantially in excess of the 
decision of the adjudicative officer and is unreasonable when compared 
with such decision, under the facts and circumstances of the case, the 
adjudicative officer shall award to the party the fees and other 
expenses related to defending against the excessive demand, unless the 
party has committed a willful violation of law or otherwise acted in 
bad faith, or special circumstances make an award unjust. Fees and 
expenses awarded under this paragraph shall be paid only as a 
consequence of appropriations provided in advance.''.
    (b) Section 504(b) of title 5, United States Code, is amended--
            (1) in paragraph (1)(A), by striking ``$75'' and inserting 
        ``$125'';
            (2) at the end of paragraph (1)(B), by inserting before the 
        semicolon ``or for purposes of subsection (a)(4), a small 
        entity as defined in section 601'';
            (3) at the end of paragraph (1)(D), by striking ``and'';
            (4) at the end of paragraph (1)(E), by striking the period 
        and inserting ``; and''; and
            (5) at the end of paragraph (1), by adding the following 
        new subparagraph:
            ``(F) `demand' means the express demand of the agency which 
        led to the adversary adjudication, but does not include a 
        recitation by the agency of the maximum statutory penalty (i) 
        in the administrative complaint, or (ii) elsewhere when 
        accompanied by an express demand for a lesser amount.''.

SEC. 232. JUDICIAL PROCEEDINGS.

    (a) Section 2412(d)(1) of title 28, United States Code, is amended 
by adding at the end the following new subparagraph:
    ``(D) If, in a civil action brought by the United States or a 
proceeding for judicial review of an adversary adjudication described 
in section 504(a)(4) of title 5, the demand by the United States is 
substantially in excess of the judgment finally obtained by the United 
States and is unreasonable when compared with such judgment, under the 
facts and circumstances of the case, the court shall award to the party 
the fees and other expenses related to defending against the excessive 
demand, unless the party has committed a willful violation of law or 
otherwise acted in bad faith, or special circumstances make an award 
unjust. Fees and expenses awarded under this subparagraph shall be paid 
only as a consequence of appropriations provided in advance.''.
    (b) Section 2412(d) of title 28, United States Code, is amended--
            (1) in paragraph (2)(A), by striking ``$75'' and inserting 
        ``$125'';
            (2) at the end of paragraph (2)(B), by inserting before the 
        semicolon ``or for purposes of subsection (d)(1)(D), a small 
        entity as defined in section 601 of title 5'';
            (3) at the end of paragraph (2)(G), by striking ``and'';
            (4) at the end of paragraph (2)(H), by striking the period 
        and inserting ``; and''; and
            (5) at the end of paragraph (2), by adding the following 
        new subparagraph:
            ``(I) `demand' means the express demand of the United 
        States which led to the adversary adjudication, but shall not 
        include a recitation of the maximum statutory penalty (i) in 
        the complaint, or (ii) elsewhere when accompanied by an express 
        demand for a lesser amount.''.

SEC. 233. EFFECTIVE DATE.

    The amendments made by sections 331 and 332 shall apply to civil 
actions and adversary adjudications commenced on or after the date of 
the enactment of this subtitle.

           Subtitle D--Regulatory Flexibility Act Amendments

 SEC. 241. REGULATORY FLEXIBILITY ANALYSES.

    (a) Initial Regulatory Flexibility Analysis.--
            (1) Section 603.--Section 603(a) of title 5, United States 
        Code, is amended--
                    (A) by inserting after ``proposed rule'', the 
                phrase ``, or publishes a notice of proposed rulemaking 
                for an interpretative rule involving the internal 
                revenue laws of the United States''; and
                    (B) by inserting at the end of the subsection, the 
                following new sentence: ``In the case of an 
                interpretative rule involving the internal revenue laws 
                of the United States, this chapter applies to 
                interpretative rules published in the Federal Register 
                for codification in the Code of Federal Regulations, 
                but only to the extent that such interpretative rules 
                impose on small entities a collection of information 
                requirement.''.
            (2) Section 601.--Section 601 of title 5, United States 
        Code, is amended by striking ``and'' at the end of paragraph 
        (5), by striking the period at the end of paragraph (6) and 
        inserting ``; and'', and by adding at the end the following:
            ``(7) the term `collection of information'--
                    ``(A) means the obtaining, causing to be obtained, 
                soliciting, or requiring the disclosure to third 
                parties or the public, of facts or opinions by or for 
                an agency, regardless of form or format, calling for 
                either--
                            ``(i) answers to identical questions posed 
                        to, or identical reporting or recordkeeping 
                        requirements imposed on, 10 or more persons, 
                        other than agencies, instrumentalities, or 
                        employees of the United States; or
                            ``(ii) answers to questions posed to 
                        agencies, instrumentalities, or employees of 
                        the United States which are to be used for 
                        general statistical purposes; and
                    ``(B) shall not include a collection of information 
                described under section 3518(c)(1) of title 44, United 
                States Code.
            ``(8) Recordkeeping requirement.--The term `recordkeeping 
        requirement' means a requirement imposed by an agency on 
        persons to maintain specified records.
    (b) Final Regulatory Flexibility Analysis.--Section 604 of title 5, 
United States Code, is amended--
            (1) in subsection (a) to read as follows:
    ``(a) When an agency promulgates a final rule under section 553 of 
this title, after being required by that section or any other law to 
publish a general notice of proposed rulemaking, or promulgates a final 
interpretative rule involving the internal revenue laws of the United 
States as described in section 603(a), the agency shall prepare a final 
regulatory flexibility analysis. Each final regulatory flexibility 
analysis shall contain--
            ``(1) a succinct statement of the need for, and objectives 
        of, the rule;
            ``(2) a summary of the significant issues raised by the 
        public comments in response to the initial regulatory 
        flexibility analysis, a summary of the assessment of the agency 
        of such issues, and a statement of any changes made in the 
        proposed rule as a result of such comments;
            ``(3) a description of and an estimate of the number of 
        small entities to which the rule will apply or an explanation 
        of why no such estimate is available;
            ``(4) a description of the projected reporting, record 
        keeping and other compliance requirements of the rule, 
        including an estimate of the classes of small entities which 
        will be subject to the requirement and the type of professional 
        skills necessary for preparation of the report or record; and
            ``(5) a description of the steps the agency has taken to 
        minimize the significant economic impact on small entities 
        consistent with the stated objectives of applicable statutes, 
        including a statement of the factual, policy, and legal reasons 
        for selecting the alternative adopted in the final rule and why 
        each one of the other significant alternatives to the rule 
        considered by the agency which affect the impact on small 
        entities was rejected.''; and
            (2) in subsection (b), by striking ``at the time'' and all 
        that follows and inserting ``such analysis or a summary 
        thereof.''.

 SEC. 242. JUDICIAL REVIEW.

    Section 611 of title 5, United States Code, is amended to read as 
follows:
``Sec. 611. Judicial review
    ``(a)(1) For any rule subject to this chapter, a small entity that 
is adversely affected or aggrieved by final agency action is entitled 
to judicial review of agency compliance with the requirements of 
sections 601, 604, 605(b), 608(b), and 610 in accordance with chapter 
7. Agency compliance with sections 607 and 609(a) shall be judicially 
reviewable in connection with judicial review of section 604.
    ``(2) Each court having jurisdiction to review such rule for 
compliance with section 553, or under any other provision of law, shall 
have jurisdiction to review any claims of noncompliance with sections 
601, 604, 605(b), 608(b), and 610 in accordance with chapter 7. Agency 
compliance with sections 607 and 609(a) shall be judicially reviewable 
in connection with judicial review of section 604.
    ``(3)(A) A small entity may seek such review during the period 
beginning on the date of final agency action and ending one year later, 
except that where a provision of law requires that an action 
challenging a final agency action be commenced before the expiration of 
one year, such lesser period shall apply to an action for judicial 
review under this section.
    ``(B) In the case where an agency delays the issuance of a final 
regulatory flexibility analysis pursuant to section 608(b) of this 
chapter, an action for judicial review under this section shall be 
filed not later than--
            ``(i) one year after the date the analysis is made 
        available to the public, or
            ``(ii) where a provision of law requires that an action 
        challenging a final agency regulation be commenced before the 
        expiration of the 1-year period, the number of days specified 
        in such provision of law that is after the date the analysis is 
        made available to the public.
    ``(4) In granting any relief in an action under this section, the 
court shall order the agency to take corrective action consistent with 
this chapter and chapter 7, including, but not limited to--
            ``(A) remanding the rule to the agency, and
            ``(B) deferring the enforcement of the rule against small 
        entities unless the court finds that continued enforcement of 
        the rule is in the public interest.
    ``(5) Nothing in this subsection shall be construed to limit the 
authority of any court to stay the effective date of any rule or 
provision thereof under any other provision of law or to grant any 
other relief in addition to the requirements of this section.
    ``(b) In an action for the judicial review of a rule, the 
regulatory flexibility analysis for such rule, including an analysis 
prepared or corrected pursuant to paragraph (a)(4), shall constitute 
part of the entire record of agency action in connection with such 
review.
    ``(c) Compliance or noncompliance by an agency with the provisions 
of this chapter shall be subject to judicial review only in accordance 
with this section.
    ``(d) Nothing in this section bars judicial review of any other 
impact statement or similar analysis required by any other law if 
judicial review of such statement or analysis is otherwise permitted by 
law.''.

 SEC. 243. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Section 605(b) of title 5, United States Code, is amended to 
read as follows:
    ``(b) Sections 603 and 604 of this title shall not apply to any 
proposed or final rule if the head of the agency certifies that the 
rule will not, if promulgated, have a significant economic impact on a 
substantial number of small entities. If the head of the agency makes a 
certification under the preceding sentence, the agency shall publish 
such certification in the Federal Register at the time of publication 
of general notice of proposed rulemaking for the rule or at the time of 
publication of the final rule, along with a statement providing the 
factual basis for such certification. The agency shall provide such 
certification and statement to the Chief Counsel for Advocacy of the 
Small Business Administration.''.
    (b) Section 612 of title 5, United States Code is amended--
            (1) in subsection (a), by striking ``the committees on the 
        Judiciary of the Senate and the House of Representatives, the 
        Select Committee on Small Business of the Senate, and the 
        Committee on Small Business of the House of Representatives'' 
        and inserting ``the Committees on the Judiciary and Small 
        Business of the Senate and House of Representatives''.
            (2) in subsection (b), by striking ``his views with respect 
        to the'' and inserting in lieu thereof, ``his or her views with 
        respect to compliance with this chapter, the adequacy of the 
        rulemaking record with respect to small entities and the''.

 SEC. 244. SMALL BUSINESS ADVOCACY REVIEW PANELS.

    (a) Small Business Outreach and Interagency Coordination.-- Section 
609 of title 5, United States Code is amended--
            (1) before ``techniques,'' by inserting ``the reasonable 
        use of'';
            (2) in paragraph (4), after ``entities'' by inserting 
        ``including soliciting and receiving comments over computer 
        networks'';
            (3) by designating the current text as subsection (a); and
            (4) by adding the following:
    ``(b) Prior to publication of an initial regulatory flexibility 
analysis which a covered agency is required to conduct by this 
chapter--
            ``(1) a covered agency shall notify the Chief Counsel for 
        Advocacy of the Small Business Administration and provide the 
        Chief Counsel with information on the potential impacts of the 
        proposed rule on small entities and the type of small entities 
        that might be affected;
            ``(2) not later than 15 days after the date of receipt of 
        the materials described in paragraph (1), the Chief Counsel 
        shall identify individuals representative of affected small 
        entities for the purpose of obtaining advice and 
        recommendations from those individuals about the potential 
        impacts of the proposed rule;
            ``(3) the agency shall convene a review panel for such rule 
        consisting wholly of full time Federal employees of the office 
        within the agency responsible for carrying out the proposed 
        rule, the Office of Information and Regulatory Affairs within 
        the Office of Management and Budget, and the Chief Counsel;
            ``(4) the panel shall review any material the agency has 
        prepared in connection with this chapter, including any draft 
        proposed rule, collect advice and recommendations of each 
        individual small entity representative identified by the agency 
        after consultation with the Chief Counsel, on issues related to 
        subsections 603(b), paragraphs (3), (4) and (5) and 603(c);
            ``(5) not later than 60 days after the date a covered 
        agency convenes a review panel pursuant to paragraph (3), the 
        review panel shall report on the comments of the small entity 
        representatives and its findings as to issues related to 
        subsections 603(b), paragraphs (3), (4) and (5) and 603(c), 
        provided that such report shall be made public as part of the 
        rulemaking record; and
            ``(6) where appropriate, the agency shall modify the 
        proposed rule, the initial regulatory flexibility analysis or 
        the decision on whether an initial regulatory flexibility 
        analysis is required.
    ``(c) An agency may in its discretion apply subsection (b) to rules 
that the agency intends to certify under subsection 605(b), but the 
agency believes may have a greater than de minimis impact on a 
substantial number of small entities.
    ``(d) For purposed of this section, the term covered agency means 
the Environmental Protection Agency and the Occupational Safety and 
Health Administration of the Department of Labor.
    ``(e) The Chief Counsel for Advocacy, in consultation with the 
individuals identified in subsection (b)(2), and with the Administrator 
of the Office of Information and Regulatory Affairs within the Office 
of Management and Budget, may waive the requirements of subsections 
(b)(3), (b)(4), and (b)(5) by including in the rulemaking record a 
written finding, with reasons therefor, that those requirements would 
not advance the effective participation of small entities in the 
rulemaking process. For purposes of this subsection, the factors to be 
considered in making such a finding are as follows:
            ``(1) In developing a proposed rule, the extent to which 
        the covered agency consulted with individuals representative of 
        affected small entities with respect to the potential impacts 
        of the rule and took such concerns into consideration.
            ``(2) Special circumstances requiring prompt issuance of 
        the rule.
            ``(3) Whether the requirements of subsection (b) would 
        provide the individuals identified in subsection (b)(2) with a 
        competitive advantage relative to other small entities.''.
    (b) Small Business Advocacy Chairpersons.--Not later than 30 days 
after the date of enactment of this Act, the head of each covered 
agency that has conducted a final regulatory flexibility analysis shall 
designate a small business advocacy chairperson using existing 
personnel to the extent possible, to be responsible for implementing 
this section and to act as permanent chair of the agency's review 
panels established pursuant to this section.

SEC. 245. EFFECTIVE DATE.

    This subtitle shall become effective on the expiration of 90 days 
after the date of enactment of this subtitle, except that such 
amendments shall not apply to interpretative rules for which a notice 
of proposed rulemaking was published prior to the date of enactment.

                    Subtitle E--Congressional Review

SEC. 251. CONGRESSIONAL REVIEW OF AGENCY RULEMAKING.

    Title 5, United States Code, is amended by inserting immediately 
after chapter 7 the following new chapter:

         ``CHAPTER 8--CONGRESSIONAL REVIEW OF 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.
``808. Effective date of certain rules.
``Sec. 801. Congressional review
    ``(a)(1)(A) Before a rule can take effect, the Federal agency 
promulgating such rule shall submit to each House of the Congress and 
to the Comptroller General a report containing--
            ``(i) a copy of the rule;
            ``(ii) a concise general statement relating to the rule, 
        including whether it is a major rule; and
            ``(iii) the proposed effective date of the rule.
    ``(B) On the date of the submission of the report under 
subparagraph (A), the Federal agency promulgating the rule shall submit 
to the Comptroller General and make available to each House of 
Congress--
            ``(i) a complete copy of the cost-benefit analysis of the 
        rule, if any;
            ``(ii) the agency's actions relevant to sections 603, 604, 
        605, 607, and 609;
            ``(iii) the agency's actions relevant to sections 202, 203, 
        204, and 205 of the Unfunded Mandates Reform Act of 1995; and
            ``(iv) any other relevant information or requirements under 
        any other Act and any relevant Executive Orders.
    ``(C) Upon receipt of a report submitted under subparagraph (A), 
each House shall provide copies of the report to the Chairman and 
Ranking Member of each standing committee with jurisdiction under the 
rules of the House of Representatives or the Senate to report a bill to 
amend the provision of law under which the rule is issued.
    ``(2)(A) The Comptroller General shall provide a report on each 
major rule to the committees of jurisdiction in each House of the 
Congress by the end of 15 calendar days after the submission or 
publication date as provided in section 802(b)(2). The report of the 
Comptroller General shall include an assessment of the agency's 
compliance with procedural steps required by paragraph (1)(B).
    ``(B) Federal agencies shall cooperate with the Comptroller General 
by providing information relevant to the Comptroller General's report 
under subparagraph (A).
    ``(3) A major rule relating to a report submitted under paragraph 
(1) shall take effect on the latest of--
            ``(A) the later of the date occurring 60 days after the 
        date on which--
                    ``(i) the Congress receives the report submitted 
                under paragraph (1); or
                    ``(ii) the rule is published in the Federal 
                Register, if so published;
            ``(B) if the Congress passes a joint resolution of 
        disapproval described in section 802 relating to the rule, and 
        the President signs a veto of such resolution, the earlier 
        date--
                    ``(i) on which either House of Congress votes and 
                fails to override the veto of the President; or
                    ``(ii) occurring 30 session days after the date on 
                which the Congress received the veto and objections of 
                the President; or
            ``(C) the date the rule would have otherwise taken effect, 
        if not for this section (unless a joint resolution of 
        disapproval under section 802 is enacted).
    ``(4) Except for a major rule, a rule shall take effect as 
otherwise provided by law after submission to Congress under paragraph 
(1).
    ``(5) Notwithstanding paragraph (3), the effective date of a rule 
shall not be delayed by operation of this chapter beyond the date on 
which either House of Congress votes to reject a joint resolution of 
disapproval under section 802.
    ``(b)(1) A rule shall not take effect (or continue), if the 
Congress enacts a joint resolution of disapproval, described under 
section 802, of the rule.
    ``(2) A rule that does not take effect (or does not continue) under 
paragraph (1) may not be reissued in substantially the same form, and a 
new rule that is substantially the same as such a rule may not be 
issued, unless the reissued or new rule is specifically authorized by a 
law enacted after the date of the joint resolution disapproving the 
original rule.
    ``(c)(1) Notwithstanding any other provision of this section 
(except subject to paragraph (3)), a rule that would not take effect by 
reason of subsection (a)(3) may take effect, if the President makes a 
determination under paragraph (2) and submits written notice of such 
determination to the Congress.
    ``(2) Paragraph (1) applies to a determination made by the 
President by Executive Order that the rule should take effect because 
such rule is--
            ``(A) necessary because of an imminent threat to health or 
        safety or other emergency;
            ``(B) necessary for the enforcement of criminal laws;
            ``(C) necessary for national security; or
            ``(D) issued pursuant to any statute implementing an 
        international trade agreement.
    ``(3) An exercise by the President of the authority under this 
subsection shall have no effect on the procedures under section 802 or 
the effect of a joint resolution of disapproval under this section.
    ``(d)(1) In addition to the opportunity for review otherwise 
provided under this chapter, in the case of any rule for which a report 
was submitted in accordance with subsection (a)(1)(A) during the period 
beginning on the date occurring--
            ``(A) in the case of the Senate, 60 session days, or
            ``(B) in the case of the House of Representatives, 60 
        legislative days,
before the date the Congress adjourns a session of Congress through the 
date on which the same or succeeding Congress first convenes its next 
session, section 802 shall apply to such rule in the succeeding session 
of Congress.
    ``(2)(A) In applying section 802 for purposes of such additional 
review, a rule described under paragraph (1) shall be treated as 
though--
            ``(i) such rule were published in the Federal Register (as 
        a rule that shall take effect) on--
                    ``(I) in the case of the Senate, the 15th session 
                day, or
                    ``(II) in the case of the House of Representatives, 
                the 15th legislative day,
        after the succeeding session of Congress first convenes; and
            ``(ii) a report on such rule were submitted to Congress 
        under subsection (a)(1) on such date.
    ``(B) Nothing in this paragraph shall be construed to affect the 
requirement under subsection (a)(1) that a report shall be submitted to 
Congress before a rule can take effect.
    ``(3) A rule described under paragraph (1) shall take effect as 
otherwise provided by law (including other subsections of this 
section).
    ``(e)(1) For purposes of this subsection, section 802 shall also 
apply to any major rule promulgated between March 1, 1996, and the date 
of the enactment of this chapter.
    ``(2) In applying section 802 for purposes of Congressional review, 
a rule described under paragraph (1) shall be treated as though--
            ``(A) such rule were published in the Federal Register on 
        the date of enactment of this chapter; and
            ``(B) a report on such rule were submitted to Congress 
        under subsection (a)(1) on such date.
    ``(3) The effectiveness of a rule described under paragraph (1) 
shall be as otherwise provided by law, unless the rule is made of no 
force or effect under section 802.
    ``(f) Any rule that takes effect and later is made of no force or 
effect by enactment of a joint resolution under section 802 shall be 
treated as though such rule had never taken effect.
    ``(g) If the Congress does not enact a joint resolution of 
disapproval under section 802 respecting a rule, no court or agency may 
infer any intent of the Congress from any action or inaction of the 
Congress with regard to such rule, related statute, or joint resolution 
of disapproval.
``Sec. 802. Congressional disapproval procedure
    ``(a) For purposes of this section, the term `joint resolution' 
means only a joint resolution introduced in the period beginning on the 
date on which the report referred to in section 801(a)(1)(A) is 
received by Congress and ending 60 days thereafter (excluding days 
either House of Congress is adjourned for more than 3 days during a 
session of Congress), the matter after the resolving clause of which is 
as follows: `That Congress disapproves the rule submitted by the ____ 
relating to ____, and such rule shall have no force or effect.' (The 
blank spaces being appropriately filled in).
    ``(b)(1) A joint resolution described in subsection (a) shall be 
referred to the committees in each House of Congress with jurisdiction.
    ``(2) For purposes of this section, the term `submission or 
publication date' means the later of the date on which--
            ``(A) the Congress receives the report submitted under 
        section 801(a)(1); or
            ``(B) the rule is published in the Federal Register, if so 
        published.
    ``(c) In the Senate, if the committee to which is referred a joint 
resolution described in subsection (a) has not reported such joint 
resolution (or an identical joint resolution) at the end of 20 calendar 
days after the submission or publication date defined under subsection 
(b)(2), such committee may be discharged from further consideration of 
such joint resolution upon a petition supported in writing by 30 
Members of the Senate, and such joint resolution shall be placed on the 
calendar.
    ``(d)(1) In the Senate, when the committee to which a joint 
resolution is referred has reported, or when a committee is discharged 
(under subsection (c)) from further consideration of a joint resolution 
described in subsection (a), it is at any time thereafter in order 
(even though a previous motion to the same effect has been disagreed 
to) for a motion to proceed to the consideration of the joint 
resolution, and all points of order against the joint resolution (and 
against consideration of the joint resolution) are waived. The motion 
is not subject to amendment, or to a motion to postpone, or to a motion 
to proceed to the consideration of other business. A motion to 
reconsider the vote by which the motion is agreed to or disagreed to 
shall not be in order. If a motion to proceed to the consideration of 
the joint resolution is agreed to, the joint resolution shall remain 
the unfinished business of the Senate until disposed of.
    ``(2) In the Senate, debate on the joint resolution, and on all 
debatable motions and appeals in connection therewith, shall be limited 
to not more than 10 hours, which shall be divided equally between those 
favoring and those opposing the joint resolution. A motion further to 
limit debate is in order and not debatable. An amendment to, or a 
motion to postpone, or a motion to proceed to the consideration of 
other business, or a motion to recommit the joint resolution is not in 
order.
    ``(3) In the Senate, immediately following the conclusion of the 
debate on a joint resolution described in subsection (a), and a single 
quorum call at the conclusion of the debate if requested in accordance 
with the rules of the Senate, the vote on final passage of the joint 
resolution shall occur.
    ``(4) Appeals from the decisions of the Chair relating to the 
application of the rules of the Senate to the procedure relating to a 
joint resolution described in subsection (a) shall be decided without 
debate.
    ``(e) In the Senate the procedure specified in subsection (c) or 
(d) shall not apply to the consideration of a joint resolution 
respecting a rule--
            ``(1) after the expiration of the 60 session days beginning 
        with the applicable submission or publication date, or
            ``(2) if the report under section 801(a)(1)(A) was 
        submitted during the period referred to in section 801(d)(1), 
        after the expiration of the 60 session days beginning on the 
        15th session day after the succeeding session of Congress first 
        convenes.
    ``(f) If, before the passage by one House of a joint resolution of 
that House described in subsection (a), that House receives from the 
other House a joint resolution described in subsection (a), then the 
following procedures shall apply:
            ``(1) The joint resolution of the other House shall not be 
        referred to a committee.
            ``(2) With respect to a joint resolution described in 
        subsection (a) of the House receiving the joint resolution--
                    ``(A) the procedure in that House shall be the same 
                as if no joint resolution had been received from the 
                other House; but
                    ``(B) the vote on final passage shall be on the 
                joint resolution of the other House.
    ``(g) This section is enacted by Congress--
            ``(1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a joint resolution described in 
        subsection (a), and it supersedes other rules only to the 
        extent that it is inconsistent with such rules; and
            ``(2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.
``Sec. 803. Special rule on statutory, regulatory, and judicial 
              deadlines
    ``(a) In the case of any deadline for, relating to, or involving 
any rule which does not take effect (or the effectiveness of which is 
terminated) because of enactment of a joint resolution under section 
802, that deadline is extended until the date 1 year after the date of 
enactment of the joint resolution. Nothing in this subsection shall be 
construed to affect a deadline merely by reason of the postponement of 
a rule's effective date under section 801(a).
    ``(b) The term `deadline' means any date certain for fulfilling any 
obligation or exercising any authority established by or under any 
Federal statute or regulation, or by or under any court order 
implementing any Federal statute or regulation.
``Sec. 804. Definitions
    ``For purposes of this chapter--
            ``(1) The term `Federal agency' means any agency as that 
        term is defined in section 551(1).
            ``(2) The term ``major rule'' means any rule that the 
        Administrator of the Office of Information and Regulatory 
        Affairs of the Office of Management and Budget finds has 
        resulted in or is likely to result in--
                    ``(A) an annual effect on the economy of 
                $100,000,000 or more;
                    ``(B) a major increase in costs or prices for 
                consumers, individual industries, Federal, State, or 
                local government agencies, or geographic regions; or
                    ``(C) significant adverse effects on competition, 
                employment, investment, productivity, innovation, or on 
                the ability of United States-based enterprises to 
                compete with foreign-based enterprises in domestic and 
                export markets.
        The term does not include any rule promulgated under the 
        Telecommunications Act of 1996 and the amendments made by that 
        Act.
            ``(3) The term `rule' has the meaning given such term in 
        section 551, except that such term does not include--
                    ``(A) any rule of particular applicability, 
                including a rule that approves or prescribes for the 
                future rates, wages, prices, services, or allowances 
                therefor, corporate or financial structures, 
                reorganizations, mergers, or acquisitions thereof, or 
                accounting practices or disclosures bearing on any of 
                the foregoing;
                    ``(B) any rule relating to agency management or 
                personnel; or
                    ``(C) any rule of agency organization, procedure, 
                or practice that does not substantially affect the 
                rights or obligations of non-agency parties.
``Sec. 805. Judicial review
    ``No determination, finding, action, or omission under this chapter 
shall be subject to judicial review.
``Sec. 806. Applicability; severability
    ``(a) This chapter shall apply notwithstanding any other provision 
of law.
    ``(b) If any provision of this chapter or the application of any 
provision of this chapter to any person or circumstance, is held 
invalid, the application of such provision to other persons or 
circumstances, and the remainder of this chapter, shall not be affected 
thereby.
``Sec. 807. Exemption for monetary policy
    ``Nothing in this chapter shall apply to rules that concern 
monetary policy proposed or implemented by the Board of Governors of 
the Federal Reserve System or the Federal Open Market Committee.
``Sec. 808. Effective date of certain rules
    ``Notwithstanding section 801--
            ``(1) any rule that establishes, modifies, opens, closes, 
        or conducts a regulatory program for a commercial, 
        recreational, or subsistence activity related to hunting, 
        fishing, or camping, or
            ``(2) any rule which an agency for good cause finds (and 
        incorporates the finding and a brief statement of reasons 
        therefor in the rule issued) that notice and public procedure 
        thereon are impracticable, unnecessary, or contrary to the 
        public interest,
shall take effect at such time as the Federal agency promulgating the 
rule determines.''.

SEC. 252. EFFECTIVE DATE.

    The amendment made by section 351 shall take effect on the date of 
enactment of this Act.

SEC. 253. TECHNICAL AMENDMENT.

    The table of chapters for part I of title 5, United States Code, is 
amended by inserting immediately after the item relating to chapter 7 
the following:

``8. Congressional Review of Agency Rulemaking.............      801''.

                      TITLE III--PUBLIC DEBT LIMIT

SEC. 301. INCREASE IN PUBLIC DEBT LIMIT.

    Subsection (b) of section 3101 of title 31, United States Code, is 
amended by striking the dollar limitation contained in such subsection 
and inserting ``$5,500,000,000,000''.

            Passed the House of Representatives March 28, 1996.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.
```