I 

108TH CONGRESS 

2D SESSION H. R. 3761

To establish the Program Reform Commission to review unnecessary Federal 

programs and make recommendations for termination, modification, or 

retention of such programs, and to state the sense of the Congress 

that the Congress should promptly consider legislation that would make 

the changes in law necessary to implement the recommendations. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 3, 2004

Mr. SMITH of Washington (for himself, Mr. SHAYS, Mr. CASE, Mr. TIERNEY, 

Mr. CARTER, Mr. DUNCAN, Mr. EMANUEL, Mr. BEAUPREZ, Mr. 

HEFLEY, and Mr. KIND) introduced the following bill; which was referred 

to the Committee on Government Reform 

A BILL

To establish the Program Reform Commission to review unnecessary Federal programs and make recommendations 

for termination, modification, or retention of such programs, and to state the sense of the Congress that 

the Congress should promptly consider legislation that 

would make the changes in law necessary to implement 

the recommendations.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Program Reform Com3 mission Act of 2004’’. 

4 SEC. 2. FINDINGS. 

5 The Congress finds that—

6 (1) Federal programs which may have been en7 acted with a valid purpose can become obsolete, or 

8 no longer in the public interest, making such pro9 grams unnecessary or undesired; 

10 (2) it is unfair to force the United States tax11 payer to support unnecessary programs that do not 

12 provide a substantial public benefit or serve the pub13 lic interest; 

14 (3) the Congress has been unable to evaluate 

15 methodically those Federal programs that are unfair 

16 and unnecessary and require reform or elimination; 

17 and 

18 (4) a Commission to advise the Congress is es19 sential to a comprehensive review of such programs 

20 and to the reform or elimination of such programs. 

21 SEC. 3. PURPOSE. 

22 The purpose of this Act is to establish a fair and de23 liberative process that will result in the timely identifica24 tion, review, and reform or elimination of programs of the 

25 Federal Government. 
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1 SEC. 4. DEFINITION. 

2 For purposes of this Act, the term ‘‘program’’—

3 (1) except as provided in paragraph (2), means 

4 a system of services or projects that is provided by 

5 the Federal Government; and 

6 (2) does not include a service or project that ex7 ists for the purposes of research and development in 

8 the broad public interest on the basis of a peer re9 viewed or other open, competitive, merit-based proce10 dure. 

11 SEC. 5. THE COMMISSION. 

12 (a) ESTABLISHMENT.—There is established an inde13 pendent commission to be known as the ‘‘Program Reform 

14 Commission’’ (hereafter in this Act referred to as the 

15 ‘‘Commission’’). 

16 (b) DUTIES.—The Commission shall—

17 (1) examine the programs of the Federal Gov18 ernment and identify programs that are no longer 

19 necessary; 

20 (2) review unnecessary programs; and 

21 (3) submit the report required under section 

22 6(c) to the Congress, making recommendations re23 garding the termination, modification, or retention 

24 of programs. 

25 (c) ADVISORY COMMITTEE.—The Commission shall 

26 be considered an advisory committee within the meaning 
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1 of that term in the Federal Advisory Committee Act (5 

2 U.S.C. App.). 

3 (d) APPOINTMENT.—

4 (1) MEMBERS.—The members of the Commis5 sion—

6 (A) shall be appointed for the life of the 

7 Commission; and 

8 (B) shall be composed of 8 members, of 

9 whom—

10 (i) 2 shall be appointed by the Speak11 er of the House of Representatives; 

12 (ii) 2 shall be appointed by the minor13 ity leader of the House of Representatives; 

14 (iii) 2 shall be appointed by the ma15 jority leader of the Senate, one of whom 

16 shall be designated by the majority leader 

17 to serve as a co-chair; and 

18 (iv) 2 shall be appointed by the minor19 ity leader of the Senate, one of whom shall 

20 be designated by the minority leader to 

21 serve as a co-chair. 

22 (2) CONSULTATION REQUIRED.—The Speaker 

23 of the House of Representatives, the minority leader 

24 of the House of Representatives, the majority leader 

25 of the Senate, and the minority leader of the Senate 
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1 shall consult among themselves prior to the appoint2 ment of the members of the Commission in order to 

3 achieve, to the maximum extent possible, fair and 

4 equitable representation of various points of view 

5 with respect to the matters to be studied by the 

6 Commission under subsection (b). 

7 (3) BACKGROUND.—The members shall rep8 resent a broad array of expertise covering, to the ex9 tent practical, all subject matter, programs, and 

10 laws the Commission is likely to review. 

11 (e) MEETINGS.—

12 (1) INITIAL MEETING.—No later than April 1, 

13 2004, the Commission shall conduct its first meet14 ing. 

15 (2) OPEN MEETINGS.—Each meeting of the 

16 Commission shall be open to the public, except that 

17 in cases in which classified information, trade se18 crets, or personnel matters are discussed, the co19 chairs may close the meeting. All proceedings, infor20 mation, and deliberations of the Commission shall be 

21 available, upon request, to the Chairman and rank22 ing minority member of the relevant Committee of 

23 the Congress having jurisdiction to report legislation 

24 regarding the subject matter thereof. 
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1 (f) VACANCIES.—A vacancy on the Commission shall 

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

3 (g) PAY AND TRAVEL EXPENSES.—

4 (1) PAY.—Notwithstanding section 7 of the 

5 Federal Advisory Committee Act (5 App. U.S.C.), 

6 each member of the Commission, other than the co7 chairs, shall be paid at a rate equal to the daily 

8 equivalent of the minimum annual rate of basic pay 

9 for level IV of the Executive Schedule under section 

10 5315 of title 5, United States Code, for each day 

11 (including travel time) during which the member is 

12 engaged in the actual performance of duties vested 

13 in the Commission. 

14 (2) CHAIRMEN.—Notwithstanding section 7 of 

15 the Federal Advisory Committee Act (5 App. 

16 U.S.C.), the co-chairs shall be paid for each day re17 ferred to in paragraph (1) at a rate equal to the 

18 daily payment of the minimum annual rate of basic 

19 pay payable for level III of the Executive Schedule 

20 under section 5314 of title 5, United States Code. 

21 (3) TRAVEL EXPENSES.—Members of the Com22 mission shall receive travel expenses, including per 

23 diem in lieu of subsistence, in accordance with sec24 tion 5702 and 5703 of title 5, United States Code. 

25 (h) DIRECTOR OF STAFF.—
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1 (1) QUALIFICATIONS.—The co-chairs shall ap2 point as Director an individual who has not, during 

3 the 12 months preceding the date of such appoint4 ment, served in any of the entities or industries that 

5 the Commission intends to review. 

6 (2) PAY.—Notwithstanding section 7 of the 

7 Federal Advisory Committee Act (5 App. U.S.C.), 

8 the Director shall be paid at the rate of basic pay 

9 payable for level IV of the Executive Schedule under 

10 section 5315 of title 5, United States Code. 

11 (3) REPORTS.—The Director shall submit peri12 odic reports on administrative and personnel matters 

13 to the co-chairs of the Commission and the Chair14 man and ranking minority member of the Committee 

15 on Governmental Affairs of the Senate and the Com16 mittee on Government Reform of the House of the 

17 Representatives. 

18 (i) STAFF.—

19 (1) ADDITIONAL PERSONNEL.—Subject to para20 graphs (2) and (4), the Director, with the approval 

21 of the Commission, may appoint and fix the pay of 

22 additional personnel. 

23 (2) APPOINTMENTS.—The Director may make 

24 such appointments without regard to the provisions 

25 of title 5, United States Code, governing appoint-
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1 ments in the competitive service, and any personnel 

2 so appointed may be paid without regard to the pro3 visions of chapter 51 and subchapter III of chapter 

4 53 of that title relating to classification and General 

5 Schedule pay rates. 

6 (3) LEGAL STAFF.—The Director shall appoint 

7 under paragraph (2) such professional legal staff as 

8 are necessary for the performance of the functions 

9 of the Commission. 

10 (4) DETAILEES.—Upon the request of the Di11 rector, the head of any Federal department or agen12 cy may detail any of the personnel of that depart13 ment or agency to the Commission to assist the 

14 Commission in accordance with an agreement en15 tered into with the Commission. 

16 (5) RESTRICTIONS ON PERSONNEL AND

17 DETAILEES.—The following restrictions shall apply 

18 to personnel and detailees of the Commission: 

19 (A) PERSONNEL.—No more than one-third 

20 of the personnel detailed to the Commission 

21 may be on detail from Federal agencies that 

22 deal directly or indirectly with the Federal sub23 sidies the Commission intends to review. 

24 (B) ANALYSTS.—No more than one-fifth of 

25 the professional analysts of the Commission 
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1 may be persons detailed from a Federal agency 

2 that deals directly or indirectly with the Federal 

3 subsidies the Commission intends to review. 

4 (C) LEAD ANALYST.—No person detailed 

5 from a Federal agency to the Commission may 

6 be assigned as the lead professional analyst 

7 with respect to an entity or industry the Com8 mission intends to review if the person has been 

9 involved in regulatory or policymaking decisions 

10 affecting any such entity or industry in the 12 

11 months preceding such assignment. 

12 (D) DETAILEE.—A person may not be de13 tailed from a Federal agency to the Commission 

14 if, within 12 months before the detail is to 

15 begin, that person participated personally and 

16 substantially in any matter within that par17 ticular agency concerning the preparation of 

18 recommendations under this Act. 

19 (E) FEDERAL OFFICER OR EMPLOYEE.—

20 No officer or employee of a Federal agency 

21 may—

22 (i) prepare any report concerning the 

23 effectiveness, fitness, or efficiency of the 

24 performance on the staff of the Commis-
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1 sion of any person detailed from a Federal 

2 agency to that staff; 

3 (ii) review the preparation of such re4 port; or 

5 (iii) approve or disapprove such a re6 port. 

7 (F) LIMITATION ON STAFF SIZE.—(i) Sub8 ject to clause (ii), there may not be more than 

9 25 persons (including any detailees) on the 

10 staff at any time. 

11 (ii) The Commission may increase the 

12 member of its personnel in excess of the limita13 tion under clause (i), 15 days after submitting 

14 notification of such increase to the Committee 

15 on Governmental Affairs of the Senate and the 

16 Committee on Government Reform of the 

17 House of Representatives. 

18 (G) LIMITATION ON FEDERAL OFFICER.—

19 No member of a Federal agency and no em20 ployee of a Federal agency may serve as a 

21 member of the Commission or as a paid mem22 ber of its staff. 

23 (6) ASSISTANCE.—

24 (A) IN GENERAL.—The Comptroller Gen25 eral of the United States may provide assist-
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1 ance, including the detailing of employees, to 

2 the Commission in accordance with an agree3 ment entered into with the Commission. 

4 (B) CONSULTATION.—The Commission 

5 and the Comptroller General of the United 

6 States shall consult with the Committee on 

7 Governmental Affairs of the Senate and the 

8 Committee on Government Reform of the 

9 House of Representatives on the agreement re10 ferred to under subparagraph (A) before enter11 ing into such agreement. 

12 (j) OTHER AUTHORITY.—

13 (1) EXPERTS AND CONSULTANTS.—The Com14 mission may procure by contract, to the extent funds 

15 are available, the temporary or intermittent services 

16 of experts or consultants pursuant to section 3109 

17 of title 5, United States Code. 

18 (2) LEASING.—The Commission may lease 

19 space and acquire personal property to the extent 

20 that funds are available. 

21 (k) FUNDING.—There are authorized to be appro22 priated to the Commission $4,000,000 to carry out its du23 ties under this Act. 

24 (l) TERMINATION.—The Commission shall terminate 

25 on January 1, 2006. 
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1 SEC. 6. PROCEDURE FOR MAKING RECOMMENDATIONS TO 

2 TERMINATE PROGRAMS. 

3 (a) AGENCY PLAN.—

4 (1) IN GENERAL.—The head of each Federal 

5 department or agency shall include in the documents 

6 submitted in support of the budget of the agency for 

7 fiscal year 2005 a list identifying all programs ad8 ministered by that department or agency that the 

9 head of the department or agency determines no 

10 longer are necessary. 

11 (2) CONTENTS.—Such list shall include—

12 (A) a detailed description of each program 

13 in question; 

14 (B) a statement identifying and detailing 

15 the extent to which each service or project of 

16 the program meets the provisions of section 4; 

17 (C) a statement summarizing the legisla18 tive history and purpose of such services or 

19 projects and the laws or policies directly or indi20 rectly giving rise to the need for such programs; 

21 and 

22 (D) a recommendation to the Commission 

23 regarding the termination, modification, or re24 tention of each program identified in the list. 

25 (b) REVIEW BY THE COMMISSION.—
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1 (1) IN GENERAL.—At any time after the sub2 mission of the budget documents to the Congress, 

3 the Commission shall conduct public hearings on the 

4 termination, modification, or retention of programs, 

5 including the recommendations included in the lists 

6 required under subsection (a). 

7 (2) TESTIMONY UNDER OATH.—All testimony 

8 before the Commission at a public hearing conducted 

9 under this paragraph shall be presented under oath. 

10 (c) REPORT AND RECOMMENDATIONS OF COMMIS11 SION.—

12 (1) REPORT TO CONGRESS.—

13 (A) REQUIREMENT.—No later than March 

14 31, 2005, the Commission shall submit a report 

15 to the Congress containing the Commission’s 

16 findings and recommendations for termination, 

17 modification, or retention of each of the pro18 grams reviewed by the Commission. 

19 (B) CONTENTS.—Such findings and rec20 ommendations shall specify—

21 (i) all actions, circumstances, and con22 siderations relating to or bearing upon the 

23 recommendations; and 

24 (ii) to the maximum extent prac25 ticable, the estimated effect of the rec-
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1 ommendations upon the policies, laws, and 

2 programs directly or indirectly affected by 

3 the recommendations. 

4 (C) SUPERMAJORITY REQUIREMENT.—The 

5 Commission may not include a recommendation 

6 in the report unless inclusion of the rec7 ommendation is approved by at least 6 mem8 bers of the Commission. 

9 (2) INFORMATION AND JUSTIFICATIONS.—The 

10 Commission shall include in its report information 

11 specifying—

12 (A) the reasons and justifications for the 

13 recommendations of the Commission; 

14 (B) to the maximum extent practicable, 

15 the estimated fiscal, economic, and budgetary 

16 impact of accepting its recommendations; 

17 (C) the amount of the projected savings re18 sulting from each of its recommendations; 

19 (D) all actions, circumstances, and consid20 erations relating to or bearing upon the rec21 ommendations and to the maximum extent 

22 practicable, the estimated effect of the rec23 ommendations upon the policies, laws and pro24 grams directly or indirectly affected by the rec25 ommendations; and 
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1 (E) the specific changes in Federal stat2 utes necessary to implement the recommenda3 tions, including citation of the relevant provi4 sions of existing law. 

5 (3) SUBMISSION TO CONGRESS.—The report 

6 submitted to the Congress under this subsection 

7 shall be submitted to the Senate and the House of 

8 Representatives on the same day, and shall be deliv9 ered to the Secretary of the Senate if the Senate is 

10 not in session, and to the Clerk of the House of the 

11 Representatives if the House is not in session. 

12 (4) FEDERAL REGISTER.—The report sub13 mitted under this subsection shall be printed in the 

14 first issue of the Federal Register after such submis15 sion. 

16 (5) CHANGES IN AGENCY OR DEPARTMENT

17 RECOMMENDATIONS.—

18 (A) IN GENERAL.—Subject to the deadline 

19 in paragraph (1) and to subparagraphs (B) and 

20 (C) of this paragraph, in making its rec21 ommendations, the Commission may make 

22 changes in any of the recommendations made 

23 by a department or agency if the Commission 

24 determines that such department or agency, in 

25 treating any matter as an inequitable Federal 
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1 subsidy, deviated substantially from the provi2 sions of section 4. 

3 (B) LIMITATION.—The Commission may 

4 make a change in the recommendations made 

5 by a department or agency, only if the Commis6 sion—

7 (i) makes the determination required 

8 under subparagraph (B); and 

9 (ii) conducts a public hearing on the 

10 Commission’s proposed changes. 

11 (C) APPLICATION OF LIMITATION.—Sub12 paragraph (B) shall apply only to a change by 

13 the Commission in a department or agency rec14 ommendation that would—

15 (i) add or delete a program to or 

16 from, respectively, the list recommended 

17 for termination; 

18 (ii) add or delete a program to or 

19 from, respectively, the list recommended 

20 for modification; or 

21 (iii) increase or decrease the extent of 

22 a recommendation to modify a program, 

23 included in a department’s or agency’s rec24 ommendation. 
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1 (D) JUSTIFICATION.—The Commission 

2 shall explain and justify in the report submitted 

3 to the Congress under this subsection any rec4 ommendation made by the Commission that is 

5 different from a recommendation made by an 

6 agency under subsection (a). 

7 (6) PROVISION OF INFORMATION TO MEMBERS

8 OF CONGRESS.—After March 31, 2005, the Commis9 sion shall, upon request, promptly provide to any 

10 Member of Congress the information used by the 

11 Commission in making its recommendations. 

12 (7) COMPTROLLER GENERAL.—The Comp13 troller General of the United States shall—

14 (A) assist the Commission, to the extent 

15 requested, in the Commission’s review and anal16 ysis of the lists, statements, and recommenda17 tions made by departments and agencies under 

18 subsection (a); and 

19 (B) no later than 60 days after April 1, 

20 2004, or the public release of the President’s 

21 budget documents in 2004, whichever is earlier, 

22 submit to the Congress and to the Commission 

23 a report containing a detailed analysis of the 

24 list, statements, and recommendations of each 

25 department or agency. 
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1 SEC. 7. CONGRESSIONAL ACTION ON COMMISSION REC2 OMMENDATIONS. 

3 It is the sense of the Congress that, following submis4 sion of the report of the Program Reform Commission 

5 under section 6, the House of Representatives and the 

6 Senate should promptly consider legislation that would 

7 enact changes in Federal statutes necessary to implement 

8 the recommendations of the Commission.

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