I 
108TH CONGRESS 
1ST SESSION H. R. 2902
To establish the Corporate Subsidy Reform Commission to review inequitable 
Federal subsidies and make recommendations for termination, modifica-
tion, or retention of such subsidies, 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 
JULY 25, 2003
Mr. SMITH of Washington (for himself, Mr. SHAYS, Mr. CASE, Mr. TIERNEY, 
Mr. CARTER, Mr. DUNCAN, and Mr. EMANUEL) introduced the following 
bill; which was referred to the Committee on Government Reform, and 
in addition to the Committee on Ways and Means, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To establish the Corporate Subsidy Reform Commission to 
review inequitable Federal subsidies and make rec-
ommendations for termination, modification, or retention 
of such subsidies, and to state the sense of the Congress 
that the Congress should promptly consider legislation 
that would make the changes in law necessary to imple-
ment the recommendations.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Corporate Subsidy Re-
form Commission Act of 2003’’. 
SEC. 2. FINDINGS. 
The Congress finds that—
(1) Federal subsidies, including tax advantages, 
which may have been enacted with a valid purpose 
for specific industries or industry segments can—
(A) fall subject to abuse, causing unantici-
pated and unjustified windfalls to some indus-
tries and industry segments; or 
(B) become obsolete, anticompetitive, or no 
longer in the public interest, making such sub-
sidies unnecessary or undesired; 
(2) it is unfair to force the United States tax-
payer to support unnecessary subsidies, including 
tax advantages, that do not provide a substantial 
public benefit or serve the public interest; 
(3) the Congress has been unable to evaluate 
methodically those Federal subsidies that are unfair 
and unnecessary and require reform or elimination; 
and 
(4) a Commission to advise the Congress is es-
sential to a comprehensive review of such unfair cor-
porate subsidies and to the reform or elimination of 
such subsidies.
SEC. 3. PURPOSE. 
The purpose of this Act is to establish a fair and de-
liberative process that will result in the timely identifica-
tion, review, and reform or elimination of unnecessary and 
inequitable subsidies, including tax advantages, provided 
by the Federal Government to entities or industries en-
gaged in profit-making enterprises. 
SEC. 4. DEFINITION. 
For purposes of this Act, the term ‘‘inequitable Fed-
eral subsidy’’—
(1) except as provided in paragraph (2), means 
a payment, benefit, service, or tax advantage that—
(A) is provided by the Federal Government 
to any corporation, partnership, joint venture, 
association, or business trust other than—
(i) a nonprofit organization described 
under section 501(c)(3) of the Internal 
Revenue Code of 1986 that is exempt from 
taxation under section 501(a) of the Inter-
nal Revenue Code of 1986; or 
(ii) a State or local government or In-
dian Tribe; and 
(B) provides an unfair competitive advan-
tage or financial windfall; and 
(2) does not include a payment, benefit, service, 
or tax advantage that—
(A) is awarded for the purposes of re-
search and development in the broad public in-
terest on the basis of a peer reviewed or other 
open, competitive, merit-based procedure; and 
(B) primarily benefits public health, safety, 
homeland security, the environment, or edu-
cation. 
SEC. 5. THE COMMISSION. 
(a) ESTABLISHMENT.—There is established an inde-
pendent commission to be known as the ‘‘Corporate Sub-
sidy Reform Commission’’ (hereafter in this Act referred 
to as the ‘‘Commission’’). 
(b) DUTIES.—The Commission shall—
(1) examine the programs and laws of the Fed-
eral Government and identify such programs and 
laws that provide inequitable Federal subsidies; 
(2) review inequitable Federal subsidies; and 
(3) submit the report required under section 
6(c) to the Congress, making recommendations re-
garding the termination, modification, or retention 
of inequitable Federal subsidies. 
(c) LIMITATIONS.—
(1) CREATION OF NEW PROGRAMS OR TAXES.—
This Act is not intended to result in the creation of 
new programs or taxes. The Commission established
in this section shall limit its activities to reviewing 
existing programs or laws with the goal of ensuring 
fairness and equity in the operation and application 
thereof. 
(2) ELIMINATION OF AGENCIES AND DEPART-
MENTS.—The Commission—
(A) shall limit its recommendations to the 
termination or reform of payments, benefits, 
services, or tax advantages; and 
(B) shall not recommend the termination 
of any Federal agency or department. 
(d) ADVISORY COMMITTEE.—The Commission shall 
be considered an advisory committee within the meaning 
of that term in the Federal Advisory Committee Act (5 
U.S.C. App.). 
(e) APPOINTMENT.—
(1) MEMBERS.—The members of the Commis-
sion—
(A) shall be appointed for the life of the 
Commission; and 
(B) shall be composed of 8 members, of 
whom—
(i) 2 shall be appointed by the Speak-
er of the House of Representatives;
(ii) 2 shall be appointed by the minor-
ity leader of the House of Representatives; 
(iii) 2 shall be appointed by the ma-
jority leader of the Senate, one of whom 
shall be designated by the majority leader 
to serve as a co-chair; and 
(iv) 2 shall be appointed by the minor-
ity leader of the Senate, one of whom shall 
be designated by the minority leader to 
serve as a co-chair. 
(2) CONSULTATION
REQUIRED.—The Speaker 
of the House of Representatives, the minority leader 
of the House of Representatives, the majority leader 
of the Senate, and the minority leader of the Senate 
shall consult among themselves prior to the appoint-
ment of the members of the Commission in order to 
achieve, to the maximum extent possible, fair and 
equitable representation of various points of view 
with respect to the matters to be studied by the 
Commission under subsection (b). 
(3) BACKGROUND.—The members shall rep-
resent a broad array of expertise covering, to the ex-
tent practical, all subject matter, programs, and 
laws the Commission is likely to review. 
(f) MEETINGS.—