1386
under this subparagraph in the same man-
ner as such provisions apply to a penalty
or proceeding under section 1128A(a).
‘‘(D) 
CONFIDENTIALITY
OF
INFORMA-
TION.—Notwithstanding any other provision of
law, information disclosed by manufacturers or
wholesalers under this paragraph or under an
agreement with the Secretary of Veterans Af-
fairs described in section 2123(f) is confidential
and shall not be disclosed by the Secretary or
the Secretary of Veterans Affairs or a State
agency (or contractor therewith) in a form
which discloses the identity of a specific manu-
facturer or wholesaler or the prices charged for
drugs by such manufacturer or wholesaler, ex-
cept—
‘‘(i) as the Secretary determines to be
necessary to carry out this section,
‘‘(ii) to permit the Comptroller Gen-
eral to review the information provided,
and
‘‘(iii) to permit the Director of the
Congressional Budget Office to review the
information provided.
‘‘(4) LENGTH OF AGREEMENT.—
1387
‘‘(A) IN GENERAL.—The MediGrant mas-
ter rebate agreement under this section shall be
effective for an initial period of not less than 1
year and shall be automatically renewed for a
period of not less than one year unless termi-
nated under subparagraph (B).
‘‘(B) TERMINATION.—
‘‘(i) BY THE SECRETARY.—The Sec-
retary may provide for termination of the
MediGrant master rebate agreement with
respect to a manufacturer for violation of
the requirements of the agreement or other
good cause shown. Such termination shall
not be effective earlier than 60 days after
the date of notice of such termination. The
Secretary shall provide, upon request, a
manufacturer with a hearing concerning
such a termination, but such hearing shall
not delay the effective date of the termi-
nation. Failure of a State to provide any
advance notice of such a termination as re-
quired by regulation shall not affect the
State’s right to terminate coverage of the
drugs affected by such termination as of
the effective date of such termination.
1388
‘‘(ii) BY A MANUFACTURER.—A man-
ufacturer may terminate its participation
in the MediGrant master rebate agreement
under this section for any reason. Any
such termination shall not be effective
until the calendar quarter beginning at
least 60 days after the date the manufac-
turer provides notice to the Secretary.
‘‘(iii) EFFECTIVENESS
OF
TERMI-
NATION.—Any termination under this sub-
paragraph shall not affect rebates due
under the agreement before the effective
date of its termination.
‘‘(iv) NOTICE
TO
STATES.—In the
case of a termination under this subpara-
graph, the Secretary shall provide notice of
such termination to the States within not
less than 30 days before the effective date
of such termination.
‘‘(v) APPLICATION TO TERMINATIONS
OF OTHER AGREEMENTS.—The provisions
of this subparagraph shall apply to the ter-
minations of master agreements described
in section 8126(a) of title 38, United
States Code.
1389
‘‘(C) DELAY
BEFORE
REENTRY.—In the
case of any rebate agreement with a manufac-
turer under this section which is terminated,
another such agreement with the manufacturer
(or a successor manufacturer) may not be en-
tered into until a period of 1 calendar quarter
has elapsed since the date of the termination,
unless the Secretary finds good cause for an
earlier reinstatement of such an agreement.
‘‘(c) DETERMINATION OF AMOUNT OF REBATE.—
‘‘(1) BASIC
REBATE
FOR
SINGLE
SOURCE
DRUGS
AND
INNOVATOR
MULTIPLE
SOURCE
DRUGS.—
‘‘(A) IN GENERAL.—Except as provided in
paragraph (2), the amount of the rebate speci-
fied in this subsection with respect to a State
participating in the MediGrant master rebate
agreement for a rebate period (as defined in
subsection (i)(8)) with respect to each dosage
form and strength of a single source drug or an
innovator multiple source drug shall be equal to
the product of—
‘‘(i) the total number of units of each
dosage form and strength paid for under
1390
the State plan in the rebate period (as re-
ported by the State); and
‘‘(ii) the greater of—
‘‘(I) the difference between the
average manufacturer price and the
best price (as defined in subparagraph
(C)) for the dosage form and strength
of the drug, or
‘‘(II) the minimum rebate per-
centage (specified in subparagraph
(B)) of such average manufacturer
price,
for the rebate period.
‘‘(B) MINIMUM
REBATE
PERCENTAGE.—
For purposes of subparagraph (A)(ii)(II), the
‘minimum rebate percentage’ is 15.1 percent.
‘‘(C) BEST
PRICE
DEFINED.—For pur-
poses of this section—
‘‘(i) IN
GENERAL.—The term ‘best
price’ means, with respect to a single
source drug or innovator multiple source
drug of a manufacturer, the lowest price
available from the manufacturer during the
rebate period to any wholesaler, retailer,
provider, health maintenance organization,
1392
‘‘(I) shall be inclusive of cash dis-
counts, free goods that are contingent
on any purchase requirement, volume
discounts, and rebates (other than re-
bates under this section);
‘‘(II) shall be determined without
regard to special packaging, labeling,
or identifiers on the dosage form or
product or package;
‘‘(III) shall not take into account
prices that are merely nominal in
amount; and
‘‘(IV) shall exclude rebates paid
under this section or any other re-
bates paid to a State participating in
the MediGrant master rebate agree-
ment.
‘‘(2) ADDITIONAL REBATE FOR SINGLE SOURCE
AND INNOVATOR MULTIPLE SOURCE DRUGS.—
‘‘(A) IN GENERAL.—The amount of the re-
bate specified in this subsection with respect to
a State participating in the MediGrant master
rebate agreement for a rebate period, with re-
spect to each dosage form and strength of a
single source drug or an innovator multiple
1393
source drug, shall be increased by an amount
equal to the product of—
‘‘(i) the total number of units of such
dosage form and strength dispensed after
December 31, 1990, for which payment
was made under the MediGrant plan for
the rebate period; and
‘‘(ii) the amount (if any) by which—
‘‘(I) the average manufacturer
price 
for 
the 
dosage 
form 
and
strength of the drug for the period,
exceeds
‘‘(II) the average manufacturer
price for such dosage form and
strength for the calendar quarter be-
ginning July 1, 1990 (without regard
to whether or not the drug has been
sold or transferred to an entity, in-
cluding a division or subsidiary of the
manufacturer, after the first day of
such quarter), increased by the per-
centage by which the consumer price
index for all urban consumers (United
States city average) for the month be-
fore the month in which the rebate pe-
1394
riod begins exceeds such index for
September 1990.
‘‘(B) TREATMENT OF SUBSEQUENTLY AP-
PROVED DRUGS.—In the case of a covered out-
patient drug approved by the Food and Drug
Administration after October 1, 1990, clause
(ii)(II) of subparagraph (A) shall be applied by
substituting ‘the first full calendar quarter after
the day on which the drug was first marketed’
for ‘the calendar quarter beginning July 1,
1990’ and ‘the month prior to the first month
of the first full calendar quarter after the day
on which the drug was first marketed’ for ‘Sep-
tember 1990’.
‘‘(3) REBATE FOR OTHER DRUGS.—
‘‘(A) IN GENERAL.—The amount of the re-
bate paid to a State participating in the
MediGrant master rebate agreement for a re-
bate period with respect to each dosage form
and strength of covered outpatient drugs (other
than single source drugs and innovator multiple
source drugs) shall be equal to the product of—
‘‘(i) the applicable percentage (as de-
scribed in subparagraph (B)) of the aver-
age manufacturer price for the dosage
1395
form and strength for the rebate period,
and
‘‘(ii) the total number of units of such
dosage form and strength dispensed after
December 31, 1990, for which payment
was made under the MediGrant plan for
the rebate period.
‘‘(B) 
APPLICABLE
PERCENTAGE
DE-
FINED.—For purposes of subparagraph (A)(i),
the ‘applicable percentage’ is 11 percent.
‘‘(4) LIMITATION ON AMOUNT OF REBATE TO
AMOUNTS PAID FOR CERTAIN DRUGS.—Upon request
of a manufacturer of a covered outpatient drug for
which a majority of the estimated number of units
of such dosage form and strength that are subject
to rebates under this section were dispensed to inpa-
tients of nursing facilities (including drugs which are
exempt from the requirements of the MediGrant
master rebate agreement under this section under
subsection (h)(1)(B)), the Secretary shall limit the
amount of the rebate under this subsection with re-
spect to a dosage form and strength of the drug for
a rebate period to the amount paid under the
MediGrant plan with respect to such dosage form
1396
and strength of the drug in the rebate period (with-
out consideration of any dispensing fees paid).
‘‘(d) LIMITATIONS
ON COVERAGE
OF DRUGS
BY
STATES PARTICIPATING IN MASTER AGREEMENT.—
‘‘(1) PERMISSIBLE
RESTRICTIONS.—A State
participating in the MediGrant master rebate agree-
ment under this section may—
‘‘(A) subject to prior authorization under
its MediGrant plan any covered outpatient drug
so long as any such prior authorization pro-
gram complies with the requirements of para-
graph (5); and
‘‘(B) exclude or otherwise restrict coverage
under its plan of a covered outpatient drug if—
‘‘(i) the prescribed use is not for a
medically accepted indication (as defined in
subsection (i)(5));
‘‘(ii) the drug is contained in the list
referred to in paragraph (2);
‘‘(iii) the drug is subject to such re-
strictions pursuant to the MediGrant mas-
ter rebate agreement or any agreement de-
scribed in subsection (a)(4); or
1397
‘‘(iv) the State has excluded coverage
of the drug from its formulary established
in accordance with paragraph (4).
‘‘(2) LIST
OF
DRUGS
SUBJECT
TO
RESTRIC-
TION.—The following drugs or classes of drugs, or
their medical uses, may be excluded from coverage
or otherwise restricted by a State participating in
the MediGrant master rebate agreement:
‘‘(A) Agents when used for anorexia,
weight loss, or weight gain.
‘‘(B) Agents when used to promote fertil-
ity.
‘‘(C) Agents when used for cosmetic pur-
poses or hair growth.
‘‘(D) Agents when used for the sympto-
matic relief of cough and colds.
‘‘(E) Agents when used to promote smok-
ing cessation.
‘‘(F) Prescription vitamins and mineral
products, except prenatal vitamins and fluoride
preparations.
‘‘(G) Nonprescription drugs.
‘‘(H) Covered outpatient drugs which the
manufacturer seeks to require as a condition of
sale that associated tests or monitoring services
1398
be purchased exclusively from the manufacturer
or its designee.
‘‘(I) Barbiturates.
‘‘(J) Benzodiazepines.
‘‘(3) ADDITIONS TO DRUG LISTINGS.—The Sec-
retary shall, by regulation, periodically update the
list of drugs or classes of drugs described in para-
graph (2), or their medical uses, which the Secretary
has determined to be subject to clinical abuse or in-
appropriate use.
‘‘(4) REQUIREMENTS
FOR
FORMULARIES.—A
State participating in the MediGrant master rebate
agreement may establish a formulary if the for-
mulary meets the following requirements:
‘‘(A) The formulary is developed by a com-
mittee consisting of physicians, pharmacists,
and other appropriate individuals appointed by
the Governor of the State.
‘‘(B) Except as provided in subparagraph
(C), the formulary includes the covered out-
patient drugs of any manufacturer which has
entered into and complies with the agreement
under subsection (a) (other than any drug ex-
cluded from coverage or otherwise restricted
under paragraph (2)).
1399
‘‘(C) A covered outpatient drug may be ex-
cluded with respect to the treatment of a spe-
cific disease or condition for an identified popu-
lation (if any) only if, based on the drug’s label-
ing (or, in the case of a drug the prescribed use
of which is not approved under the Federal
Food, Drug, and Cosmetic Act but is a medi-
cally accepted indication, based on information
from the appropriate compendia described in
subsection (i)(5)), the excluded drug does not
have a significant, clinically meaningful thera-
peutic advantage in terms of safety, effective-
ness, or clinical outcome of such treatment for
such population over other drugs included in
the formulary and there is a written expla-
nation (available to the public) of the basis for
the exclusion.
‘‘(D) The State plan permits coverage of a
drug excluded from the formulary (other than
any drug excluded from coverage or otherwise
restricted under paragraph (2)) pursuant to a
prior authorization program that is consistent
with paragraph (5).
‘‘(E) The formulary meets such other re-
quirements as the Secretary may impose in
1400
order to achieve program savings consistent
with protecting the health of program bene-
ficiaries.
A prior authorization program established by a State
under paragraph (5) is not a formulary subject to
the requirements of this paragraph.
‘‘(5) REQUIREMENTS OF PRIOR AUTHORIZATION
PROGRAMS.—The MediGrant plan of a State partici-
pating in the MediGrant master rebate agreement
may require, as a condition of coverage or payment
for a covered outpatient drug for which Federal fi-
nancial participation is available in accordance with
this section the approval of the drug before its dis-
pensing for any medically accepted indication (as de-
fined in subsection (i)(5)) only if the system provid-
ing for such approval—
‘‘(A) provides response by telephone or
other telecommunication device within 24 hours
of a request for prior authorization; and
‘‘(B) except with respect to the drugs on
the list referred to in paragraph (2), provides
for the dispensing of at least 72-hour supply of
a covered outpatient prescription drug in an
emergency situation (as defined by the Sec-
retary).
1401
‘‘(6) OTHER
PERMISSIBLE
RESTRICTIONS.—A
State participating in the MediGrant master rebate
agreement may impose limitations, with respect to
all such drugs in a therapeutic class, on the mini-
mum or maximum quantities per prescription or on
the number of refills, if such limitations are nec-
essary to discourage waste, and may address in-
stances of fraud or abuse by individuals in any man-
ner authorized under this Act.
‘‘(e) DRUG USE REVIEW.—
‘‘(1) IN GENERAL.—A State participating in the
MediGrant master rebate agreement may provide for
a drug use review program to educate physicians
and pharmacists to identify and reduce the fre-
quency of patterns of fraud, abuse, gross overuse, or
inappropriate or medically unnecessary care, among
physicians, pharmacists, and patients, or associated
with specific drugs or groups of drugs, as well as po-
tential and actual severe adverse reactions to drugs.
‘‘(2) APPLICATION OF STATE STANDARDS.—A
State with a drug use review program under this
subsection shall establish and operate the program
under such standards as it may establish.
‘‘(f) ELECTRONIC CLAIMS MANAGEMENT.—In ac-
cordance with chapter 35 of title 44, United States Code
1402
(relating to coordination of Federal information policy),
the Secretary shall encourage each State to establish, as
its principal means of processing claims for covered out-
patient drugs under its MediGrant plan, a point-of-sale
electronic claims management system, for the purpose of
performing on-line, real time eligibility verifications,
claims data capture, adjudication of claims, and assisting
pharmacists (and other authorized persons) in applying
for and receiving payment.
‘‘(g) ANNUAL REPORT.—
‘‘(1) IN GENERAL.—Not later than May 1 of
each year, the Secretary shall transmit to the Com-
mittee on Finance of the Senate, the Committee on
Commerce of the House of Representatives, and the
Committee on Aging of the Senate a report on the
operation of this section in the preceding fiscal year.
‘‘(2) DETAILS.—Each report shall include infor-
mation on—
‘‘(A) ingredient costs paid under this title
for single source drugs, multiple source drugs,
and nonprescription covered outpatient drugs;
‘‘(B) the total value of rebates received
and number of manufacturers providing such
rebates;
1403
‘‘(C) the effect of inflation on the value of
rebates required under this section;
‘‘(D) trends in prices paid under this title
for covered outpatient drugs; and
‘‘(E) Federal and State administrative
costs associated with compliance with the provi-
sions of this title.
‘‘(h) EXEMPTION FOR CAPITATED HEALTH CARE
ORGANIZATIONS, HOSPITALS, AND
NURSING
FACILI-
TIES.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the requirements of the MediGrant mas-
ter rebate agreement under this section shall not
apply with respect to covered outpatient drugs dis-
pensed by or through—
‘‘(A) a capitated health care organization
(as defined in section 2114(c)(1)); or
‘‘(B) a hospital or nursing facility that dis-
penses covered outpatient drugs using a drug
formulary system and bills the State no more
than the hospital’s purchasing costs for covered
outpatient drugs.
‘‘(2) CONSTRUCTION
IN
DETERMINING
BEST
PRICE.—Nothing in paragraph (1) shall be con-
strued as excluding amounts paid by the entities de-
1404
scribed in such paragraph for covered outpatient
drugs from the determination of the best price (as
defined in subsection (c)(1)(C)) for such drugs.
‘‘(i) DEFINITIONS.—In the section—
‘‘(1) AVERAGE
MANUFACTURER
PRICE.—The
term ‘average manufacturer price’ means, with re-
spect to a covered outpatient drug of a manufacturer
for a rebate period, the average price paid to the
manufacturer for the drug in the United States by
wholesalers for drugs distributed to the retail phar-
macy class of trade, after deducting customary
prompt pay discounts.
‘‘(2) COVERED OUTPATIENT DRUG.—Subject to
the exceptions in subparagraph (D), the term ‘cov-
ered outpatient drug’ means—
‘‘(A) of those drugs which are treated as
prescribed drugs for purposes of section
2171(a)(1)(H), a drug which may be dispensed
only upon prescription (except as provided in
paragraph (7)), and—
‘‘(i) which is approved as a prescrip-
tion drug under section 505 or 507 of the
Federal Food, Drug, and Cosmetic Act;
‘‘(ii)(I) which was commercially used
or sold in the United States before the
1405
date of the enactment of the Drug Amend-
ments of 1962 or which is identical, simi-
lar, or related (within the meaning of sec-
tion 310.6(b)(1) of title 21 of the Code of
Federal Regulations) to such a drug, and
(II) which has not been the subject of a
final determination by the Secretary that it
is a ‘new drug’ (within the meaning of sec-
tion 201(p) of the Federal Food, Drug,
and Cosmetic Act) or an action brought by
the Secretary under section 301, 302(a),
or 304(a) of such Act to enforce section
502(f) or 505(a) of such Act; or
‘‘(iii)(I) which is described in section
107(c)(3) of the Drug Amendments of
1962 and for which the Secretary has de-
termined there is a compelling justification
for its medical need, or is identical, simi-
lar, or related (within the meaning of sec-
tion 310.6(b)(1) of title 21 of the Code of
Federal Regulations) to such a drug, and
(II) for which the Secretary has not issued
a notice of an opportunity for a hearing
under section 505(e) of the Federal Food,
Drug, and Cosmetic Act on a proposed
1406
order of the Secretary to withdraw ap-
proval of an application for such drug
under such section because the Secretary
has determined that the drug is less than
effective for some or all conditions of use
prescribed, recommended, or suggested in
its labeling;
‘‘(B) a biological product, other than a
vaccine which—
‘‘(i) may only be dispensed upon pre-
scription,
‘‘(ii) is licensed under section 351 of
the Public Health Service Act, and
‘‘(iii) is produced at an establishment
licensed under such section to produce
such product;
‘‘(C) insulin certified under section 506 of
the Federal Food, Drug, and Cosmetic Act; and
‘‘(D) a drug which may be sold without a
prescription (commonly referred to as an ‘over-
the-counter drug’), if the drug is prescribed by
a physician (or other person authorized to pre-
scribe under State law).
‘‘(3) LIMITING DEFINITION.—The term ‘covered
outpatient drug’ does not include any drug, biologi-
1407
cal product, or insulin provided as part of, or as in-
cident to and in the same setting as, any of the fol-
lowing (and for which payment may be made under
a MediGrant plan as part of payment for the follow-
ing and not as direct reimbursement for the drug):
‘‘(A) Inpatient hospital services.
‘‘(B) Hospice services.
‘‘(C) Dental services, except that drugs for
which the MediGrant plan authorizes direct re-
imbursement to the dispensing dentist are cov-
ered outpatient drugs.
‘‘(D) Physicians’ services.
‘‘(E) Outpatient hospital services.
‘‘(F) Nursing facility services and services
provided by an intermediate care facility for the
mentally retarded.
‘‘(G) Other laboratory and x-ray services.
‘‘(H) Renal dialysis services.
Such term also does not include any such drug or
product for which a National Drug Code number is
not required by the Food and Drug Administration
or a drug or biological used for a medical indication
which is not a medically accepted indication. Any
drug, biological product, or insulin excluded from the
definition of such term as a result of this paragraph
1408
shall be treated as a covered outpatient drug for
purposes of determining the best price (as defined in
subsection (c)(1)(C)) for such drug, biological prod-
uct, or insulin.
‘‘(4) MANUFACTURER.—The term ‘manufac-
turer’ means, with respect to a covered outpatient
drug, the entity holding legal title to or possession
of the National Drug Code number for such drug.
‘‘(5) MEDICALLY ACCEPTED INDICATION.—The
term ‘medically accepted indication’ means any use
for a covered outpatient drug which is approved
under the Federal Food, Drug, and Cosmetic Act, or
the use of which is supported by one or more cita-
tions included or approved for inclusion in any of the
following compendia:
‘‘(A) American Hospital Formulary Service
Drug Information.
‘‘(B) United States Pharmacopeia-Drug
Information.
‘‘(C) American Medical Association Drug
Evaluations.
‘‘(D) The peer-reviewed medical literature.
‘‘(6) MULTIPLE
SOURCE
DRUG; INNOVATOR
MULTIPLE
SOURCE
DRUG; NONINNOVATOR
MUL-
TIPLE SOURCE DRUG; SINGLE SOURCE DRUG.—
1409
‘‘(A) DEFINED.—
‘‘(i) MULTIPLE SOURCE DRUG.—The
term ‘multiple source drug’ means, with
respect to a rebate period, a covered out-
patient drug (not including any drug de-
scribed in paragraph (2)(D)) for which
there are 2 or more drug products which—
‘‘(I) are rated as therapeutically
equivalent (under the Food and Drug
Administration’s most recent publica-
tion of ‘Approved Drug Products with
Therapeutic 
Equivalence 
Evalua-
tions’),
‘‘(II) except as provided in sub-
paragraph (B), are pharmaceutically
equivalent and bioequivalent, as de-
fined in subparagraph (C) and as de-
termined by the Food and Drug Ad-
ministration, and
‘‘(III) are sold or marketed in
the State during the period.
‘‘(ii) INNOVATOR
MULTIPLE
SOURCE
DRUG.—The 
term 
‘innovator 
multiple
source drug’ means a multiple source drug
that was originally marketed under an
1410
original new drug application or product li-
censing application approved by the Food
and Drug Administration.
‘‘(iii) 
NONINNOVATOR
MULTIPLE
SOURCE
DRUG.—The term ‘noninnovator
multiple source drug’ means a multiple
source drug that is not an innovator mul-
tiple source drug.
‘‘(iv) SINGLE
SOURCE
DRUG.—The
term ‘single source drug’ means a covered
outpatient drug which is produced or dis-
tributed under an original new drug appli-
cation approved by the Food and Drug Ad-
ministration, including a drug product
marketed by any cross-licensed producers
or distributors operating under the new
drug application or product licensing appli-
cation.
‘‘(B) 
EXCEPTION.—Subparagraph
(A)(i)(II) shall not apply if the Food and Drug
Administration changes by regulation the re-
quirement that, for purposes of the publication
described in subparagraph (A)(i)(I), in order
for drug products to be rated as therapeutically
equivalent, they must be pharmaceutically
1411
equivalent and bioequivalent, as defined in sub-
paragraph (C).
‘‘(C) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) drug products are pharmaceuti-
cally equivalent if the products contain
identical amounts of the same active drug
ingredient in the same dosage form and
meet compendial or other applicable stand-
ards of strength, quality, purity, and iden-
tity;
‘‘(ii) drugs are bioequivalent if they do
not 
present 
a 
known 
or 
potential
bioequivalence problem, or, if they do
present such a problem, they are shown to
meet 
an 
appropriate 
standard 
of
bioequivalence; and
‘‘(iii) a drug product is considered to
be sold or marketed in a State if it appears
in a published national listing of average
wholesale prices selected by the Secretary,
if the listed product is generally available
to the public through retail pharmacies in
that State.
1412
‘‘(7) 
NONPRESCRIPTION
DRUGS.—If 
the
MediGrant plan of a State participating in the
MediGrant master rebate agreement under this sec-
tion includes coverage of prescribed drugs as de-
scribed in section 2171(a)(1)(H) and permits cov-
erage of drugs which may be sold without a prescrip-
tion (commonly referred to as ‘over-the-counter’
drugs), if they are prescribed by a physician (or
other person authorized to prescribe under State
law), such a drug shall be regarded as a covered out-
patient drug for purposes of the State’s participation
in the agreement.
‘‘(8) REBATE PERIOD.—The term ‘rebate pe-
riod’ means, with respect to an agreement under
subsection (a), a calendar quarter or other period
specified by the Secretary with respect to the pay-
ment of rebates under such agreement.’’.
SEC. 16002. TERMINATION OF CURRENT PROGRAM AND
TRANSITION.
(a) TERMINATION OF CURRENT PROGRAM; LIMITA-
TION ON MEDICAID PAYMENTS IN FISCAL YEAR 1996.—
Title XIX of the Social Security Act is amended—
(1) by redesignating section 1931 as section
1932; and
1413
(2) by inserting after section 1930 the following
new section:
‘‘TERMINATION OF MEDICAID PROGRAM; LIMITATION ON
NEW OBLIGATION AUTHORITY
‘‘SEC. 1931. (a) ELIMINATION OF INDIVIDUAL ENTI-
TLEMENT.—Effective on the date of the enactment of this
section—
‘‘(1) except as provided in subsection (b), the
Federal Government has no obligation to provide
payment with respect to items and services provided
under this title, and
‘‘(2) this title shall not be construed as provid-
ing for an entitlement, under Federal law in relation
to the Federal Government, in an individual or per-
son (including any provider) at the time of provision
or receipt of services.
‘‘(b) LIMITATION
ON OBLIGATION AUTHORITY.—
Notwithstanding any other provision of this title—
‘‘(1) 
POST-ENACTMENT, 
PRE-MEDIGRANT.—
Subject to paragraph (2), the Secretary is author-
ized to enter into obligations with any State under
this title for expenses incurred after the date of the
enactment of this Act and during fiscal year 1996,
but not in excess of the obligation allotment for that
State for fiscal year 1996 under section 2121(b)(4).
1414
‘‘(2) NONE AFTER MEDIGRANT.—The Secretary
is not authorized to enter into any obligation with
any State under this title for expenses incurred on
or after the earlier of—
‘‘(A) October 1, 1996; or
‘‘(B) the first day of the first quarter on
which the State plan under title XXI is first ef-
fective.
‘‘(3) AGREEMENT.—A State’s submission of
claims for payment under section 1903 after the
date of the enactment of this title with respect to
which the limitation described in paragraph (1) ap-
plies is deemed to constitute the State’s acceptance
of the obligation limitation under such paragraph
(including the formula for computing the amount of
such obligation limitation).
‘‘(c) REQUIREMENT
FOR TIMELY SUBMITTAL
OF
CLAIMS.—No payment shall be made to a State under this
title with respect to an obligation incurred before the date
of the enactment of this section, unless the State has sub-
mitted to the Secretary, by not later than June 30, 1996,
a claim for Federal financial participation for expenses
paid by the State with respect to such obligations. Nothing
in subsection (a) or (b) shall be construed as affecting the
1415
obligation of the Federal Government to pay claims de-
scribed in the previous sentence.’’.
(b) MEDICAID TRANSITION.—
(1) TREATMENT OF CERTAIN CAUSES OF AC-
TION.—No cause of action under title XIX of the
Social Security Act which seeks to require a State
to establish or maintain minimum payment rates
under such title and which has not become final as
of the date of the enactment of this Act shall be
brought or continued.
(2) 
TREATMENT
OF
CERTAIN
DISALLOW-
ANCES.—Notwithstanding any provision of law, in
the case where payment has been made under sec-
tion 1903(a) of the Social Security Act to a State
before October 1, 1995, and for which a disallow-
ance has not been taken as of such date (or, if so
taken, has not been completed by such date), the
Secretary of Health and Human Services shall dis-
continue the disallowance proceeding and, if such
disallowance has been taken as of the date of the en-
actment of this Act, any payment reductions effected
shall be rescinded and the payments returned to the
State.
(3) EXTENSION
OF
MORATORIUM.—Section
6408(a)(3) of the Omnibus Budget Reconciliation
1416
Act of 1989, as amended by section 13642 of the
Omnibus Budget Reconciliation Act of 1993, is
amended by striking ‘‘December 31, 1995’’ and in-
serting ‘‘the first day of the first quarter on which
the MediGrant plan for the State of Michigan is
first effective under title XXI of such Act’’.
(c) NO APPLICATION OF PRIOR MEDICAID JUDG-
MENTS TO MEDIGRANT PROGRAM.—No judicial or admin-
istrative decision rendered regarding requirements im-
posed under title XIX of the Social Security Act with re-
spect to a State shall have any application to the
MediGrant plan of the State title XXI of such Act. A
State may, pursuant to the previous sentence, seek the
abrogation or modification of any such decision after the
date of termination of the State plan under title XIX of
such Act.
(d) TERMINATION OF PROGRAM FOR DISTRIBUTION
OF PEDIATRIC VACCINES
(1) IN GENERAL.—Subject to paragraph (2),
section 1928 of the Social Security Act (42 U.S.C.
1396s) is repealed, effective on the date of the en-
actment of this Act.
(2) TRANSITION.—(A) Such repeal shall not af-
fect the distribution of vaccines purchased and deliv-
1417
ered to the States before the date of the enactment
of this Act.
(B) No vaccine may be purchased after such
date by the Federal Government or any State under
any contract under section 1928(d) of the Social Se-
curity Act.
(e) ANTI-FRAUD PROVISIONS.—
(1) IN GENERAL.—Section 1128(h)(1) of the
Social Security Act (42 U.S.C. 1320a–7(h)(1)) is
amended by inserting ‘‘or a MediGrant plan under
title XXI’’ after ‘‘title XIX’’.
(2) CONTINUED
ROLE
OF
INSPECTOR
GEN-
ERAL.—The Inspector General in the Department of
Health and Human Services shall have the same re-
sponsibilities and duties in relation to fraud and
abuse and related matters under the MediGrant pro-
gram under title XXI of the Social Security Act as
such Inspector General has had in relation to the
medicaid program under title XIX of such Act be-
fore the date of the enactment of this Act.
TITLE XVII—DEPARTMENT OF
COMMERCE ABOLITION
SEC. 17001. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Department of Commerce Dismantling Act’’.
1418
(b) TABLE OF CONTENTS.—The table of contents for
this title is as follows:
TITLE XVII—DEPARTMENT OF COMMERCE ABOLITION
Sec. 17001. Short title; table of contents.
Subtitle A—Abolishment of Department of Commerce
Sec. 17101. Reestablishment of Department as Commerce Programs Resolution
Agency.
Sec. 17102. Functions.
Sec. 17103. Deputy Administrator.
Sec. 17104. Continuation of service of Department officers.
Sec. 17105. Reorganization.
Sec. 17106. Abolishment of Commerce Programs Resolution Agency.
Sec. 17107. GAO report.
Sec. 17108. Conforming amendments.
Sec. 17109. Effective date.
Subtitle B—Disposition Of Particular Programs, Functions, and Agencies of
Department of Commerce
Sec. 17201. Economic development.
Sec. 17202. Technology Administration.
Sec. 17203. Terminated functions of NTIA.
Sec. 17204. Transfer of National Telecommunications and Information Admin-
istration.
Sec. 17205. National Oceanic and Atmospheric Administration.
Sec. 17206. Miscellaneous abolishments.
Sec. 17207. Privatization of travel functions.
Sec. 17208. Effective date.
Sec. 17209. Sense of Congress regarding user fees.
Subtitle C—Consolidation of Statistical Functions
Sec. 17301. Short title.
Sec. 17302. Definitions.
CHAPTER 1—ESTABLISHMENT OF FEDERAL STATISTICS AGENCY
Sec. 17311. Establishment.
Sec. 17312. Principal officers.
Sec. 17313. Transfers of functions and offices.
CHAPTER 2—ADMINISTRATIVE PROVISIONS
Sec. 17321. Personnel provisions.
Sec. 17322. General administrative provisions.
Sec. 17323. Contracts.
Sec. 17324. Regulations.
Sec. 17325. Seal.
Sec. 17326. Annual report.
CHAPTER 3—TRANSITIONAL, SAVINGS, AND CONFORMING PROVISIONS
Sec. 17331. Transfer and allocation of appropriations and personnel.
1419
Sec. 17332. Effect on personnel.
Sec. 17333. Incidental transfers.
Sec. 17334. Savings provisions.
Sec. 17335. References.
Sec. 17336. Conforming amendments.
Sec. 17337. Transition.
Sec. 17338. Interim appointments.
Subtitle D—United States Trade Administration
CHAPTER 1—GENERAL PROVISIONS
Sec. 17401. Findings.
Sec. 17402. Definitions.
CHAPTER 2—UNITED STATES TRADE ADMINISTRATION
Sec. 17411. Establishment of the Administration.
Sec. 17412. Functions of the USTR.
Sec. 17413. Deputy Administrator of the United States Trade Administration.
Sec. 17414. Deputy United States Trade Representatives.
Sec. 17415. Assistant Administrators.
Sec. 17416. General Counsel.
Sec. 17417. Inspector General.
Sec. 17418. Chief Financial Officer.
CHAPTER 3—TRANSFERS TO THE ADMINISTRATION
Sec. 17431. Office of the United States Trade Representative.
Sec. 17432. Transfers from the Department of Commerce.
Sec. 17433. Trade and Development Agency.
Sec. 17434. Functions with respect to textile agreements.
Sec. 17435. Plan for consolidation of trade activities.
CHAPTER 4—ADMINISTRATIVE PROVISIONS
Sec. 17441. Personnel provisions.
Sec. 17442. Delegation and assignment.
Sec. 17443. Succession.
Sec. 17444. Reorganization.
Sec. 17445. Rules.
Sec. 17446. Funds transfer.
Sec. 17447. Contracts, grants, and cooperative agreements.
Sec. 17448. Use of facilities.
Sec. 17449. Gifts and bequests.
Sec. 17450. Working capital fund.
Sec. 17451. Service charges.
Sec. 17452. Seal of department.
CHAPTER 5—RELATED AGENCIES
Sec. 17461. Interagency trade organization.
Sec. 17462. National Security Council.
Sec. 17463. International Monetary Fund.
CHAPTER 6—CONFORMING AMENDMENTS
Sec. 17471. Amendments to general provisions.
1420
Sec. 17472. Repeals.
Sec. 17473. Conforming amendments relating to Executive Schedule positions.
CHAPTER 7—TRANSITIONAL, SAVINGS, AND CONFORMING PROVISIONS
Sec. 17481. Additional transfers.
Sec. 17482. Incidental transfers.
Sec. 17483. Effect on personnel.
Sec. 17484. Savings provisions.
Sec. 17485. Reference.
Sec. 17486. Transition.
CHAPTER 8—MISCELLANEOUS
Sec. 17491. Effective date.
Sec. 17492. Interim appointments.
Sec. 17493. Funding reductions resulting from reorganization.
Sec. 17494. Authorization of appropriations.
Subtitle E—Patent And Trademark Office Corporation
Sec. 17501. Short title.
CHAPTER 1—PATENT AND TRADEMARK OFFICE
Sec. 17511. Establishment of Patent and Trademark Office as a corporation.
Sec. 17512. Powers and duties.
Sec. 17513. Organization and management.
Sec. 17514. Management Advisory Board.
Sec. 17515. Independence from Department of Commerce.
Sec. 17516. Trademark Trial and Appeal Board.
Sec. 17517. Board of Patent Appeals and Interferences.
Sec. 17518. Suits by and against the Corporation.
Sec. 17519. Annual report of Commissioner.
Sec. 17520. Suspension or exclusion from practice.
Sec. 17521. Funding.
Sec. 17522. Audits.
Sec. 17523. Transfer.
CHAPTER 2—EFFECTIVE DATE; TECHNICAL AMENDMENTS
Sec. 17531. Effective date.
Sec. 17532. Technical and conforming amendments.
Subtitle F—Miscellaneous Provisions
Sec. 17601. References.
Sec. 17602. Exercise of authorities.
Sec. 17603. Savings provisions.
Sec. 17604. Transfer of assets.
Sec. 17605. Delegation and assignment.
Sec. 17606. Authority of Administrator with respect to functions transferred.
Sec. 17607. Proposed changes in law.
Sec. 17608. Certain vesting of functions considered transfers.
Sec. 17609. Definitions.
Sec. 17610. Limitation on annual expenditures for continued functions.
Sec. 17611. User fees.
1421
Sec. 17612. Unobligated balances returned to Treasury.
Sec. 17613. Annual GAO report.
Subtitle A—Abolishment of
Department of Commerce
SEC. 17101.
REESTABLISHMENT OF DEPARTMENT AS COM-
MERCE PROGRAMS RESOLUTION AGENCY.
(a) REESTABLISHMENT.—The Department of Com-
merce is hereby redesignated as the Commerce Programs
Resolution Agency, which shall be a free-standing agency
in the executive branch of the Government.
(b) ADMINISTRATOR.—
(1) IN GENERAL.—There shall be at the head
of the Agency an Administrator of the Agency, who
shall be appointed by the President, by and with the
advice and consent of the Senate. The Agency shall
be administered under the supervision and direction
of the Administrator. The Administrator shall re-
ceive compensation at the rate prescribed for level II
of the Executive Schedule under section 5313 of title
5, United States Code.
(2) 
INITIAL
APPOINTMENT
OF
ADMINIS-
TRATOR.—Notwithstanding any other provision of
this title or any other law, the President may, at
any time after the date of the enactment of this
title, appoint an individual to serve as Administrator
of the Commerce Programs Resolution Agency (who
1422
may be the Secretary of Commerce), as such posi-
tion is established under paragraph (1). An appoint-
ment under this paragraph may not be construed to
affect the position of Secretary of Commerce or the
authority of the Secretary before the effective date
specified in section 17109(a).
(c) DUTIES.—The Administrator shall be responsible
for—
(1) the administration and wind-up, during the
wind-up period, of all functions of the Administrator
pursuant to section 17102 and the other provisions
of this title;
(2) the administration and wind-up, during the
wind-up period, of any outstanding obligations of the
Federal Government under any programs terminated
or repealed by this title; and
(3) taking such other actions as may be nec-
essary, before the termination date specified in sec-
tion 17106(d), to wind up any outstanding affairs of
the Department of Commerce.
SEC. 17102. FUNCTIONS.
Except to the extent a function is abolished or vested
in another official or agency by this title, the Adminis-
trator shall perform all functions that, immediately before
the effective date specified in section 17109(a), were func-
1423
tions of the Department of Commerce (or any office of
the Department) or were authorized to be performed by
the Secretary of Commerce or any other officer or em-
ployee of the Department in the capacity as such officer
or employee.
SEC. 17103. DEPUTY ADMINISTRATOR.
The Agency shall have a Deputy Administrator, who
shall—
(1) be appointed by and report to the Adminis-
trator; and
(2) shall perform such functions as may be del-
egated by the Administrator.
SEC. 17104. CONTINUATION OF SERVICE OF DEPARTMENT
OFFICERS.
(a) CONTINUATION OF SERVICE OF SECRETARY.—
The individual serving on the effective date specified in
section 17109(a) as the Secretary of Commerce may serve
and act as Administrator until the date an individual is
appointed under this title to the position of Administrator,
or until the end of the 120-day period provided for in sec-
tion 3348 of title 5, United States Code (relating to limita-
tions on the period of time a vacancy may be filled tempo-
rarily), whichever is earlier.
(b) CONTINUATION OF SERVICE OF OTHER OFFI-
CERS.—An individual serving on the effective date speci-
1424
fied in section 17109(a) as an officer of the Department
of Commerce other than the Secretary of Commerce may
continue to serve and act in an equivalent capacity in the
Agency until the date an individual is appointed under this
title to the position of Administrator, or until the end of
the 120-day period provided for in section 3348 of title
5, United States Code (relating to limitations on the pe-
riod of time a vacancy may be filled temporarily) with re-
spect to that appointment, whichever is earlier.
(c) COMPENSATION FOR CONTINUED SERVICE.—Any
person—
(1) who serves as the Administrator under sub-
section (a), or
(2) who serves under subsection (b),
after the effective date specified in section 17109(a) and
before the first appointment of a person as Administrator
shall continue to be compensated for so serving at the rate
at which such person was compensated before such effec-
tive date.
SEC. 17105. REORGANIZATION.
The Administrator may allocate or reallocate any
function of the Agency pursuant to this title among the
officers of the Agency, and may establish, consolidate,
alter, or discontinue in the Commerce Programs Resolu-
tion Agency any organizational entities that were entities
1425
of the Department of Commerce, as the Administrator
considers necessary or appropriate.
SEC. 17106. ABOLISHMENT OF COMMERCE PROGRAMS RES-
OLUTION AGENCY.
(a) IN GENERAL.—Effective on the termination date
specified in subsection (d), the Commerce Programs Reso-
lution Agency is abolished.
(b) ABOLITION OF FUNCTIONS.—Except for func-
tions transferred or otherwise continued by this title, all
functions that, immediately before the termination date
specified in subsection (d), were functions of the Com-
merce Programs Resolution Agency are abolished effective
on that termination date.
(c) PLAN FOR WINDING UP AFFAIRS.—Not later
than the effective date specified in section 17109(a), the
President shall submit to the Congress a plan for winding
up the affairs of the Agency in accordance with this title
and by not later than the termination date specified in
subsection (d).
(d) TERMINATION DATE.—The termination date
under this subsection is the date that is 3 years after the
date of the enactment of this title.
SEC. 17107. GAO REPORT.
Not later than 180 days after the date of enactment
of this title, the Comptroller General of the United States
1426
shall submit to the Congress a report which shall include
recommendations for the most efficient means of achiev-
ing, in accordance with this title—
(1) the complete abolishment of the Depart-
ment of Commerce; and
(2) the termination or transfer or other con-
tinuation of the functions of the Department of
Commerce.
SEC. 17108. CONFORMING AMENDMENTS.
(a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)
of title 3, United States Code, is amended by striking
‘‘Secretary of Commerce,’’.
(b) EXECUTIVE DEPARTMENTS.—Section 101 of title
5, United States Code, is amended by striking the follow-
ing item:
‘‘The Department of Commerce.’’.
(c) SECRETARY’S COMPENSATION.—Section 5312 of
title 5, United States Code, is amended by striking the
following item:
‘‘Secretary of Commerce.’’.
(d) COMPENSATION FOR POSITIONS AT LEVEL III.—
Section 5314 of title 5, United States Code, is amended—
(1) by striking the following item:
‘‘Under Secretary of Commerce, Under Sec-
retary of Commerce for Economic Affairs, Under
1427
Secretary of Commerce for Export Administration
and Under Secretary of Commerce for Travel and
Tourism.’’;
(2) by striking the following item:
‘‘Under Secretary of Commerce for Oceans and
Atmosphere, the incumbent of which also serves as
Administrator of the National Oceanic and Atmos-
pheric Administration.’’; and
(3) by striking the following item:
‘‘Under Secretary of Commerce for Tech-
nology.’’.
(e) COMPENSATION FOR POSITIONS AT LEVEL IV.—
Section 5315 of title 5, United States Code, is amended—
(1) by striking the following item:
‘‘Assistant Secretaries of Commerce (11).’’;
(2) by striking the following item:
‘‘General Counsel of the Department of Com-
merce.’’;
(3) by striking the following item:
‘‘Assistant Secretary of Commerce for Oceans
and Atmosphere, the incumbent of which also serves
as Deputy Administrator of the National Oceanic
and Atmospheric Administration.’’;
(4) by striking the following item:
1428
‘‘Director, National Institute of Standards and
Technology, Department of Commerce.’’;
(5) by striking the following item:
‘‘Inspector 
General, 
Department 
of 
Com-
merce.’’;
(6) by striking the following item:
‘‘Chief Financial Officer, Department of Com-
merce.’’; and
(7) by striking the following item:
‘‘Director, Bureau of the Census, Department
of Commerce.’’.
(f) COMPENSATION FOR POSITIONS AT LEVEL V.—
Section 5316 of title 5, United States Code, is amended—
(1) by striking the following item:
‘‘Director, United States Travel Service, De-
partment of Commerce.’’; and
(2) by striking the following item:
‘‘National Export Expansion Coordinator, De-
partment of Commerce.’’.
(g) INSPECTOR GENERAL ACT OF 1978.—The In-
spector General Act of 1978 (5 U.S.C. App.) is amend-
ed—
(1) in section 9(a)(1), by striking subparagraph
(B);
1429
(2) in section 11(1), by striking ‘‘Commerce,’’;
and
(3) in section 11(2), by striking ‘‘Commerce,’’;
SEC. 17109. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), this subtitle shall take effect on the date that is 6
months after the date of the enactment of this subtitle.
(b) PROVISIONS EFFECTIVE ON DATE OF ENACT-
MENT.—The following provisions of this subtitle shall take
effect on the date of the enactment of this subtitle:
(1) Section 17101(b).
(2) Section 17106(c).
(3) Section 17107.
Subtitle B—Disposition of Particu-
lar Programs, Functions, and
Agencies of Department of Com-
merce
SEC. 17201. ECONOMIC DEVELOPMENT.
(a) TERMINATED FUNCTIONS.—The Public Works
and Economic Development Act of 1965 (42 U.S.C. 3121
et seq.) is repealed.
(b) TRANSFER OF FINANCIAL OBLIGATIONS OWED
TO THE DEPARTMENT.—There are transferred to the Sec-
retary of the Treasury the loans, notes, bonds, debentures,
securities, and other financial obligations owned by the
1430
Department of Commerce under the Public Works and
Economic Development Act of 1965, together with all as-
sets or other rights (including security interests) incident
thereto, and all liabilities related thereto. There are as-
signed to the Secretary of the Treasury the functions,
powers, and abilities vested in or delegated to the Sec-
retary of Commerce or the Department of Commerce to
manage, service, collect, sell, dispose of, or otherwise real-
ize proceeds on obligations owed to the Department of
Commerce under authority of such Act with respect to any
loans, obligations, or guarantees made or issued by the
Department of Commerce pursuant to such Act.
(c) SALE OF LOANS.—The Secretary of the Treasury
shall take such actions as may be necessary to ensure that
to the maximum extent practicable loans transferred to
the Secretary under subsection (b) are sold to the public.
The Secretary shall prescribe terms for the sale of such
loans to ensure that such sale will bring the highest pos-
sible rate of return to the Federal Government.
(d) AUDIT.—Not later than 18 months after the date
of the enactment of this title, the Comptroller General
shall conduct an audit of all grants made or issued by
the Department of Commerce under the Public Works and
Economic Development Act of 1965 in fiscal year 1995
1431
and all loans, obligations, and guarantees and shall trans-
mit to Congress a report on the results of such audit.
SEC. 17202. TECHNOLOGY ADMINISTRATION.
(a) TECHNOLOGY ADMINISTRATION.—
(1) GENERAL RULE.—Except as otherwise pro-
vided in this section, the Technology Administration
shall be terminated on the effective date specified in
section 17208(a).
(2) OFFICE OF TECHNOLOGY POLICY.—The Of-
fice of Technology Policy is hereby terminated.
(b) NATIONAL
INSTITUTE
OF
STANDARDS
AND
TECHNOLOGY.—
(1) GENERAL RULE.—Except as otherwise pro-
vided in this subsection, the National Institute of
Standards and Technology (in this subsection re-
ferred to as the ‘‘Institute’’) shall be transferred to
the United States Trade Administration.
(2) FUNCTIONS OF DIRECTOR.—Except as oth-
erwise provided in this subsection, upon the transfer
under paragraph (1), the Director of the Institute
shall perform all functions relating to the Institute
that, immediately before the effective date specified
in section 17208(a), were functions of the Secretary
of Commerce or the Under Secretary of Commerce
for Technology, including the administration of sec-
1432
tion 17 of the Stevenson-Wydler Technology Innova-
tion Act of 1980.
(3) LABORATORIES.—(A) The laboratories of
the Institute shall be transferred to the United
States Trade Administration.
(B) The United States Trade Administration
shall attempt to sell the property of the laboratories
of the Institute, within 18 months after the effective
date specified in section 17208(a), to a private sec-
tor entity intending to perform substantially the
same functions as were performed by the labora-
tories of the Institute immediately before such effec-
tive date.
(C) If no offer to purchase property under sub-
paragraph (B) is received within the 18-month pe-
riod described in such subparagraph, the United
States Trade Administration shall submit a report to
the Congress containing recommendations on the ap-
propriate disposition of the property and functions
of the laboratories of the Institute.
(4) PROVISION OF SERVICES BY PRIVATE SEC-
TOR.—The Director of the Institute shall consider
proposals from experienced and qualified private-sec-
tor entities to provide services that, immediately be-
fore the effective date specified in section 17208(a),
1433
were performed by the Technology Administration,
particularly foreign competitive technology assess-
ments. The Director shall require that proposals to
provide a service that are accepted under this para-
graph satisfy user needs better than, and provide
such service at a lower cost than, the service could
be provided by the Federal Government.
(c) NATIONAL
TECHNICAL
INFORMATION
SERV-
ICE.—
(1) SALE OF PROPERTY.—The Commerce Pro-
grams Resolution Agency shall attempt to sell the
property of the National Technical Information
Service, within 18 months after the effective date
specified in section 17208(a), to a private sector en-
tity intending to perform substantially the same
functions as were performed by the National Tech-
nical Information Service immediately before such
effective date.
(2) RECOMMENDATIONS.—If no offer to pur-
chase property under paragraph (1) is received with-
in the 18-month period described in such paragraph,
the Commerce Programs Resolution Agency shall
submit a report to the Congress containing rec-
ommendations on the appropriate disposition of the
1434
property and functions of the National Technical In-
formation Service.
(3) FUNDING.—No Federal funds may be ap-
propriated for the National Technical Information
Service for any fiscal year after fiscal year 1995.
(4) ELECTRONIC
REPORTING.—Each Federal
research report that is required to be submitted to
the National Technical Information Service after the
date of the enactment of this Act shall be submitted
in an electronic, standardized format in order to fa-
cilitate the availability of Federal research reports
on the Internet and the World Wide Web.
(d) AMENDMENTS.—
(1) NATIONAL INSTITUTE OF STANDARDS AND
TECHNOLOGY
ACT.—The National Institute of
Standards and Technology Act (15 U.S.C. 271 et
seq.) is amended—
(A) in section 2(b), by striking paragraph
(1) and redesignating paragraphs (2) through
(11) as paragraphs (1) through (10), respec-
tively;
(B) in section 2(d), by striking ‘‘, including
the programs established under sections 25, 26,
and 28 of this Act’’;
1435
(C) in section 10, by striking ‘‘Advanced’’
in both the section heading and subsection (a),
and inserting in lieu thereof ‘‘Standards and’’;
and
(D) by striking sections 24, 25, 26, and
28.
(2) STEVENSON-WYDLER TECHNOLOGY INNOVA-
TION
ACT
OF
1980.—(A) The Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3701
et seq.) is amended—
(i) in section 3, by striking paragraph (2)
and redesignating paragraphs (3) through (5)
as paragraphs (2) through (4), respectively;
(ii) in section 4, by striking paragraphs
(1), (4), and (13) and redesignating paragraphs
(2), (3), (5), (6), (7), (8), (9), (10), (11), and
(12) as paragraphs (1) through (10), respec-
tively;
(iii) by striking sections 5, 6, 7, 8, 9, and
10; and
(iv) in section 11—
(I) by striking ‘‘, the Federal Labora-
tory Consortium for Technology Transfer,’’
in subsection (c)(3);
1436
(II) by striking ‘‘and the Federal Lab-
oratory Consortium for Technology Trans-
fer’’ in subsection (d)(2);
(III) by striking ‘‘, and refer such re-
quests’’ and all that follows through ‘‘avail-
able to the Service’’ in subsection (d)(3);
and
(IV) by striking subsection (e).
(B) Section 17 of the Stevenson-Wydler Tech-
nology Innovation Act of 1980 (15 U.S.C. 3711a,
relating to the Malcolm Baldrige National Quality
Award) is repealed. It is the sense of the Congress
that a private-sector entity should continue the na-
tional quality award program established by such
section.
SEC. 17203. TERMINATED FUNCTIONS OF NTIA.
(a) REPEALS.—The following provisions of law are
repealed:
(1) Subpart A of part IV of title III of the
Communications Act of 1934 (47 U.S.C. 390 et
seq.), relating to assistance for public telecommuni-
cations facilities.
(2) Subpart B of part IV of title III of the
Communications Act of 1934 (47 U.S.C. 394 et
1437
seq.), relating to the Endowment for Children’s
Educational Television.
(3) Subpart C of part IV of title III of the
Communications Act of 1934 (47 U.S.C. 395 et
seq.), relating to Telecommunications Demonstration
grants.
(b) DISPOSAL OF NTIA LABORATORIES.—
(1) TRANSFER TO RESOLUTION AGENCY.—The
laboratories of the National Telecommunications and
Information Administration shall be transferred to
the Commerce Programs Resolution Agency.
(2) SALE OF LABORATORIES.—The Commerce
Programs Resolution Agency shall attempt to sell
the property of such laboratories, within 18 months
after the effective date specified in section 17208(a),
to a private sector entity intending to perform sub-
stantially the same functions as were performed by
such laboratories immediately before such effective
date.
(3) REPORT ON DISPOSITION.—If no offer to
purchase property under subparagraph (B) is re-
ceived within the 18-month period described in such
subparagraph, the Commerce Programs Resolution
Agency shall submit a report to the Congress con-
taining recommendations on the appropriate disposi-
1438
tion of the property and functions of such labora-
tories.
SEC. 
17204. 
TRANSFER 
OF 
NATIONAL 
TELECOMMUNI-
CATIONS AND INFORMATION ADMINISTRA-
TION.
(a) TRANSFER
TO
USTA.—The National Tele-
communications and Information Administration shall be
transferred to the United States Trade Administration.
(b) ADMINISTRATOR.—The head of the National
Telecommunications and Information Administration shall
be an Administrator who shall be appointed by the Presi-
dent, by and with the advice and consent of the Senate.
The functions of the National Telecommunications and In-
formation Administration, and of the Secretary of Com-
merce and the Assistant Secretary for Communications
and Information of the Department of Commerce with re-
spect to the National Telecommunications and Informa-
tion Administration, are transferred to the Administrator.
(c) REFERENCES.—References in any provision of
law (including to the National Telecommunications and
Information Administration Organization Act) to the Sec-
retary of Commerce or the Assistant Secretary for Com-
munications and Information of the Department of Com-
merce with respect to a function vested pursuant to this
section in the Administrator of the National Telecommuni-
1439
cations and Information Administration shall be deemed
to refer to the Administrator of the National Tele-
communications and Information Administration.
SEC. 17205. NATIONAL OCEANIC AND ATMOSPHERIC AD-
MINISTRATION.
(a) 
TRANSFER
TO
DEPARTMENT
OF
AGRI-
CULTURE.—The National Oceanic and Atmospheric Ad-
ministration shall be transferred to the Department of Ag-
riculture.
(b) DEFINITIONS.—For the purposes of this section,
the term—
(1) ‘‘Act of 1890’’ means the Act entitled ‘‘An
Act to increase the efficiency and reduce the ex-
penses of the Signal Corps of the Army, and to
transfer the Weather Bureau to the Department of
Agriculture’’, approved October 1, 1890 (26 Stat.
653);
(2) ‘‘Act of 1947’’ means the Act entitled ‘‘An
Act to define the functions and duties of the Coast
and Geodetic Survey, and for other purposes’’, ap-
proved August 6, 1947 (33 U.S.C. 883a et seq.);
(3) ‘‘Act of 1970’’ means the Act entitled ‘‘An
Act to clarify the status and benefits of commis-
sioned officers of the National Oceanic and Atmos-
pheric Administration, and for other purposes’’, ap-
1440
proved December 31, 1970 (33 U.S.C. 857–1 et
seq.);
(4) ‘‘Administrator’’ means the Administrator
of the National Oceanic and Atmospheric Adminis-
tration; and
(5) ‘‘Secretary’’ means the Secretary of Agri-
culture.
(c) LEASING AND CONTRACTING.—
(1) CONTRACTING AUTHORITY.—Notwithstand-
ing any other provision of law, the Secretary of Agri-
culture is authorized to enter into contracts for data
or days-at-sea to fulfill the National Oceanic and At-
mospheric Administration missions of marine re-
search, climate research, fisheries research, hurri-
cane tracking, and mapping and charting services.
(2) UNOLS VESSEL AGREEMENTS.—In fulfill-
ing the National Oceanic and Atmospheric Adminis-
tration mission requirements described in paragraph
(1), the Secretary of Agriculture shall use excess ca-
pacity of University National Oceanographic Labora-
tory System vessels where appropriate, and may
enter into memoranda of agreement with operators
of those vessels to carry out those mission require-
ments.
1441
(d) ABOLITIONS.—The National Ocean Service and
the Office of Oceanic and Atmospheric Research are abol-
ished.
(e) TERMINATION OF THE NATIONAL OCEANIC AND
ATMOSPHERIC
ADMINISTRATION
CORPS
OF
COMMIS-
SIONED OFFICERS.—
(1) NUMBER
OF
OFFICERS.—Notwithstanding
section 8 of the Act of June 3, 1948 (33 U.S.C.
853g), no commissioned officers are authorized for
the National Oceanic and Atmospheric Administra-
tion for any fiscal year after fiscal year 1996.
(2) SEPARATION PAY.—The Secretary of Agri-
culture may separate commissioned officers from the
active list of the National Oceanic and Atmospheric
Administration, and may do so without providing
separation pay.
(3) TRANSFER.—(A) Subject to the approval of
the Secretary of Defense and under terms and con-
ditions specified by the Secretary, commissioned offi-
cers subject to paragraph (1) may transfer to the
armed services under section 716 of title 10, United
States Code.
(B) Subject to the approval of the Secretary of
Transportation and under terms and conditions
specified by the Secretary, commissioned officers
1442
subject to paragraph (1) may transfer to the United
States Coast Guard under section 716 of title 10,
United States Code.
(C) Subject to the approval of the Adminis-
trator and under terms and conditions specified by
the Administrator, commissioned officers subject to
paragraph (1) who on the date of enactment of this
section have been assigned for a period of one year
or more to the programs transferred to the Adminis-
tration by this Act (other than those associated with
the modernization of the National Oceanic and At-
mospheric Administration fleet or the operations of
the National Oceanic and Atmospheric Administra-
tion Corps of Commissioned Officers) may transfer
to the Administration as members of the civil serv-
ice.
(4) REPEALS.—(A) The following provisions of
law are repealed:
(i) The Coast and Geodetic Survey Com-
missioned Officers’ Act of 1948 (33 U.S.C.
853a–853o, 853p–853u).
(ii) The Act of February 16, 1929 (Chap-
ter 221, section 5; 45 Stat. 1187; 33 U.S.C.
852a).
1443
(iii) The Act of January 19, 1942 (Chap-
ter 6; 56 Stat. 6).
(iv) Section 9 of Public Law 87–649 (76
Stat. 495).
(v) The Act of May 22, 1917 (Chapter 20,
section 16; 40 Stat. 87; 33 U.S.C. 854 et seq.).
(vi) The Act of December 3, 1942 (Chap-
ter 670; 56 Stat. 1038).
(vii) Sections 1 through 5 of Public Law
91–621 (84 Stat. 1863; 33 U.S.C. 857–1 et
seq.).
(viii) The Act of August 10, 1956 (Chapter
1041, section 3; 70A Stat. 619; 33 U.S.C.
857a).
(ix) The Act of May 18, 1920 (Chapter
190, section 11; 41 Stat. 603; 33 U.S.C. 864).
(x) The Act of July 22, 1947 (Chapter
286; 61 Stat. 400; 33 U.S.C. 873, 874).
(xi) The Act of August 3, 1956 (Chapter
932; 70 Stat. 988; 33 U.S.C. 875, 876).
(xii) All other Acts inconsistent with this
subsection.
(B) The effective date of the repeals under sub-
paragraph (A) shall be September 30, 1997.
1444
(5) 
UNEXPENDED
BALANCES.—Unexpended
balances of appropriations, allocations, and other
funds available or made available in connection with
the National Oceanic and Atmospheric Administra-
tion Corps of Commissioned officers may be used by
the Secretary for payments under section 8 of the
Act of June 3, 1948 (33 U.S.C. 853g).
(6) ABOLITION.—The Office of the National
Oceanic and Atmospheric Administration Corps of
Operations and the Commissioned Personnel Center
are abolished effective September 30, 1997.
(f) OTHER TERMINATIONS.—The following programs
of the National Oceanic and Atmospheric Administration
are terminated:
(1) The National Undersea Research Program.
(2) The Fleet Modernization, Shipbuilding, and
Construction Account.
(3) The Charleston, South Carolina, Special
Management Plan.
(4) Chesapeake Bay Observation Buoys.
(5) Federal/State Weather Modification Grants.
(6) The Southeast Storm Research Account.
(7) The Southeast United States Caribbean
Fisheries Oceanographic Coordinated Investigations
Program.
1445
(8) National Institute for Environmental Re-
newal.
(9) The Lake Champlain Study.
(10) The Maine Marine Research Center.
(11) The South Carolina Cooperative Geodetic
Survey Account.
(12) Pacific Island Technical Assistance.
(13) Sea Grant/Oyster Disease Account.
(14) National Coastal Research and Develop-
ment Institute Account.
(15) VENTS program.
(16) National Weather Service non-Federal,
non-wildfire Fire Weather Service.
(17) National Weather Service Regional Cli-
mate Centers.
(18) National Weather Service Samoa Weather
Forecast Office Repair and Upgrade Account.
(19) Dissemination of Weather Charts (Marine
Facsimile Service).
(20) The global climate change program.
(21) The Global Learning and Observations to
Benefit the Environment Program.
Any unobligated balances appropriated to carry out any
program referred to in this subsection shall be transferred
to the general fund of the Treasury.
1446
(g) REPEALS.—The following provisions of law are
repealed effective on the date of enactment of this Act:
(1) The Ocean Thermal Conversion Act of 1980
(42 U.S.C. 9101 et seq.).
(2) Title IV of the Marine Protection, Research,
and Sanctuaries Act of 1972 (16 U.S.C. 1447 et
seq.).
(3) Title V of the Marine Protection, Research,
and Sanctuaries Act of 1972 (33 U.S.C. 2801 et
seq.).
(4) Public Law 85–342 (72 Stat. 35; 16 U.S.C.
778 et seq.), relating to fish research and experi-
mentation.
(5) The first section of the Act of August 8,
1956 (70 Stat. 1126; 16 U.S.C. 760d), relating to
grants for commercial fishing education.
(6) Public Law 86–359 (16 U.S.C. 760e et
seq.), relating to the study of migratory marine
gamefish.
(7) The Act of August 15, 1914 (Chapter 253;
38 Stat. 692; 16 U.S.C. 781 et seq.), prohibiting the
taking of sponges in the Gulf of Mexico and the
Straits of Florida.
(h) TRANSFER
OF
FISHERIES
PROGRAMS
TO
MARAD.—
1447
(1) OPERATING DIFFERENTIAL SUBSIDY PRO-
GRAM.—Section 607(k)(9) of the Merchant Marine
Act, 1936 (46 App. U.S.C. 1177(k)(9)) is amended
to read as follows:
‘‘(9) The term ‘Secretary’ means the Secretary of
Transportation.’’.
(2) 
SHIP
MORTGAGE
INSURANCE.—Section
1101(n) of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1177(k)(9)) is amended to read as follows:
‘‘(n) The term ‘Secretary’ means the Secretary of
Transportation.’’.
(3) OUTER
CONTINENTAL
SHELF.—Section
401(8) of the Outer Continental Shelf Lands Act
Amendments of 1978 (43 U.S.C. 1841 et seq.) is
amended to read as follows:
‘‘(8) ‘Secretary’ means the Secretary of Trans-
portation.’’.
(4) FISHERMEN’S PROTECTIVE ACT OF 1967.—
Section 10(a) of the Fishermen’s Protective Act of
1967 (22 U.S.C 1980(a)) is amended—
(A) by amending paragraph (1) to read as
follows:
‘‘(1) The terms ‘fishery’, ‘fishery conservation
zone’, ‘fishing’, ‘fishing vessel’, and ‘vessel of the
United States’ have the same meaning given to each
1448
of such terms in section 3 of the Magnuson Fishery
Conservation and Management Act (16 U.S.C.
1802).’’; and
(B) by adding at the end the following new
paragraph:
‘‘(5) The term ‘Secretary’ means the Secretary
of Transportation.’’.
(i) TRANSFER OF MAPPING, CHARTING, AND GEOD-
ESY FUNCTIONS TO THE UNITED STATES GEOLOGICAL
SURVEY.—There are hereby transferred to the Director
of the United States Geological Survey the functions relat-
ing to mapping, charting, geodesy, observation, and pre-
diction of tides and sea level authorized under the Act of
August 7, 1947 (61 Stat. 787; 33 U.S.C. 883a).
(j) REPORT ON TERMINATION OF PROGRAMS.—Not
later than 60 days after the date of the enactment of this
Act, the Secretary shall submit to the Committee on
Science of the House of Representatives and the Commit-
tee on Commerce, Science, and Transportation of the Sen-
ate a report certifying that all the programs listed in sub-
section (f) will be terminated no later than September 30,
1995.
(k) COMPETITION WITH PRIVATE SECTOR.—The
National Weather Service shall not compete, or assist
other entities to compete, with the private sector when a
1449
service is currently provided or can be provided by com-
mercial enterprise, unless—
(1) the Secretary of Agriculture finds that the
private sector is unwilling or unable to provide the
services; and
(2) the service provides vital weather warnings
and forecasts for the protection of lives and property
of the general public.
(l) AMENDMENTS.—The Act of 1890 is amended—
(1) by striking section 3 (15 U.S.C. 313); and
(2) in section 9 (15 U.S.C. 317), by striking all
after ‘‘Department of Agriculture’’ and inserting in
lieu thereof a period.
(m) NWS REPORT.—Not later than 60 days after the
date of the enactment of this Act, the Secretary of Agri-
culture shall submit to the Committee on Science of the
House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a report
detailing all National Weather Service activities which do
not conform to the requirements of this section and outlin-
ing a timetable for their termination.
(n) PROHIBITION OF LOBBYING ACTIVITIES.—None
of the funds authorized by this section shall be available
for any activity whose purpose is to influence legislation
pending before the Congress, provided that this shall not
1450
prevent officers or employees of the United States or of
its departments or agencies from communicating to Mem-
bers of Congress on the request of any Member or to Con-
gress, through the proper channels, requests for legislation
or appropriations which they deem necessary for the effi-
cient conduct of the public business.
(o) REPORT ON LABORATORIES.—
(1) IN GENERAL.—No later than 120 days after
the date of the enactment of this Act, the Secretary
of Agriculture shall conduct a review of the labora-
tories operated by the National Oceanic and Atmos-
pheric Administration and submit a report to the
Committee on Science of the House of Representa-
tives and the Committee on Commerce, Science, and
Transportation of the Senate.
(2) REQUIREMENTS.—The report required by
paragraph (1) shall—
(A) address potential efficiencies and sav-
ings which could be achieved through closing or
consolidating laboratory facilities; and
(B) review each laboratory’s—
(i) mission and activities and their
correlation to the mission priorities of the
National Oceanic and Atmospheric Admin-
istration;
1451
(ii) physical assets, equipment, condi-
tion, and personnel resources;
(iii) organization and program man-
agement; and
(iv) address other issues the Inspector
General considers relevant.
(p) LIMITATION
ON
NOAA ANNUAL
EXPENDI-
TURES.—Notwithstanding section 17610, the amount ex-
pended by the United States each fiscal year for the Na-
tional Oceanic and Atmospheric Administration may not
exceed 75 percent of the total amount expended by the
United States for the National Oceanic and Atmospheric
Administration during fiscal year 1994.
SEC. 17206. MISCELLANEOUS ABOLISHMENTS.
(a) ABOLISHMENTS.—The following agencies and
programs of the Department of Commerce are abolished,
and the functions of those agencies or programs are abol-
ished except to the extent otherwise provided in this title:
(1) The Economic Development Administration.
(2) The Minority Business Development Admin-
istration.
(3) The National Telecommunications and In-
formation Administration.
1452
(4) The Advanced Technology Program under
section 28 of the National Institute of Standards
and Technology Act (15 U.S.C. 278n).
(5) The Manufacturing Extension Programs
under sections 25 and 26 of the National Institute
of Standards and Technology Act (15 U.S.C. 278k
and 278l).
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that the Congress should continue to explore
the prospects for the private sector to assume responsibil-
ity for many of the functions and responsibilities of the
Minority Business Development Administration.
SEC. 17207. PRIVATIZATION OF TRAVEL FUNCTIONS.
The Administrator shall abolish the United States
Travel and Tourism Administration effective August 1,
1996. Prior to this date the Administrator shall submit
to the Congress a recommendation for the privatization
of the functions of the United States Travel and Tourism
Administration. In making such a recommendation the
Administrator shall consider the results of the national re-
view conducted by the White House Conference on Travel
and Tourism, including the consideration of fees to sup-
port such functions.
1453
SEC. 17208. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), this subtitle shall take effect on the effective date
specified in section 17109(a).
(b) PROVISIONS EFFECTIVE ON DATE OF ENACT-
MENT.—The following provisions of this subtitle shall take
effect on the date of the enactment of this title:
(1) section 17201.
(2) section 17206.
SEC. 17209. SENSE OF CONGRESS REGARDING USER FEES.
It is the sense of the Congress that the head of each
agency that performs a function vested in the agency by
this title should, wherever feasible, explore and implement
user fees for the provision of services in the performance
of that function, to offset operating costs.
Subtitle C—Consolidation of
Statistical Functions
SEC. 17301. SHORT TITLE.
This subtitle may be cited as the ‘‘Federal Statistics
Agency Establishment Act’’.
SEC. 17302. DEFINITIONS.
As used in this subtitle:
(1) The term ‘‘Agency’’ means the Federal Sta-
tistics Agency.
(2) The term ‘‘Administrator’’ means the Ad-
ministrator of the Federal Statistics Agency.
1454
(3) The term ‘‘Deputy Administrator’’ means
the Deputy Administrator of the Federal Statistics
Agency.
(4) The term ‘‘function’’ includes any duty, ob-
ligation, power, authority, responsibility, right, privi-
lege, activity, or program.
(5) The term ‘‘office’’ includes any office, bu-
reau, institute, council, unit, or organizational en-
tity, or any component thereof.
CHAPTER 1—ESTABLISHMENT OF
FEDERAL STATISTICS AGENCY
SEC. 17311. ESTABLISHMENT.
The Federal Statistics Agency is hereby established
as a free-standing establishment in the executive branch
of the Government.
SEC. 17312. PRINCIPAL OFFICERS.
(a) ADMINISTRATOR.—(1) There shall be at the head
of the Agency an Administrator of the Agency, who shall
be appointed by the President, by and with the advice and
consent of the Senate.
(2) The Agency, including all functions and offices
transferred to it under this subtitle, shall be administered,
in accordance with the provisions of this subtitle, under
the supervision and direction of the Administrator.
1455
(3) The Administrator shall receive basic pay at the
rate payable for level II of the Executive Schedule under
section 5313 of title 5, United States Code.
(b) DEPUTY ADMINISTRATOR.—(1) There shall be in
the Agency a Deputy Administrator of the Agency who
shall be appointed by the President, by and with the advice
and consent of the Senate.
(2) During the absence or disability of the Adminis-
trator, or in the event of a vacancy in the office of the
Administrator, the Deputy Administrator shall act as Ad-
ministrator. The Deputy Administrator shall perform such
other duties and exercise such powers as the Adminis-
trator may from time to time prescribe.
(3) The Deputy Administrator shall receive basic pay
at the rate payable for level III of the Executive Schedule
under section 5314 of title 5, United States Code.
(c) AGENCY DIRECTORS.—(1) There shall be in the
Agency—
(A) a Director of the Census who shall, on the
transfer of functions and offices under section
17313, serve as the head of the Bureau of the Cen-
sus; and
(B) a Director of the Bureau of Economic
Analysis who shall, on the transfer of functions and
1456
offices under section 17313, serve as the head of the
Bureau of Economic Analysis.
(2) Each of the Directors shall be appointed by the
President, by and with the advice and consent of the Sen-
ate. The Director of the Census shall receive basic pay
at the rate payable for level IV of the Executive Schedule
under section 5315 of title 5, United States Code. The
Director of the Bureau of Economic Analysis shall receive
basic pay at the rate payable for level V of the Executive
Schedule under section 5316 of title 5, United States
Code.
(d) GENERAL COUNSEL.—There shall be in the
Agency a General Counsel who shall administer the Office
of General Counsel of the Agency. The General Counsel
shall be appointed by the President, by and with the advice
and consent of the Senate. The General Counsel shall re-
ceive basic pay at the rate payable for level V of the Exec-
utive Schedule under section 5316 of title 5, United States
Code.
SEC. 17313. TRANSFERS OF FUNCTIONS AND OFFICES.
(a) TRANSFER OF THE BUREAU OF THE CENSUS.—
There is transferred to the Agency the Bureau of the Cen-
sus of the Department of Commerce, along with all of its
functions and offices.
1457
(b) TRANSFER
OF
THE BUREAU
OF ECONOMIC
ANALYSIS.—There is transferred to the Agency the Bu-
reau of Economic Analysis of the Department of Com-
merce, along with all of its functions and offices.
(c) TRANSFER
OF
STATISTICAL
MANAGEMENT
FUNCTIONS OF OMB.—There are transferred to the Ad-
ministrator the functions of the Director of the Office of
Management and Budget relating to statistical policy and
coordination under chapter 35 of title 44, United States
Code (as in effect immediately before such transfer), in-
cluding such functions under sections 3504(a) and (d) and
3514(a)(10) of such chapter.
(d) TRANSFER DATE.—The transfers of functions
and offices under this section shall be effective 90 days
after the date of the enactment of this Act.
CHAPTER 2—ADMINISTRATIVE
PROVISIONS
SEC. 17321. PERSONNEL PROVISIONS.
(a) OFFICERS AND EMPLOYEES.—The Administrator
may appoint and fix the compensation of such officers and
employees as may be necessary to carry out the functions
of the Administrator and the Agency. Except as otherwise
provided by law, such officers and employees shall be ap-
pointed in accordance with the civil service laws and their
1458
compensation shall be fixed in accordance with title 5,
United States Code.
(b) EXPERTS
AND CONSULTANTS.—The Adminis-
trator may as provided in appropriation Acts obtain the
services of experts and consultants in accordance with sec-
tion 3109 of title 5, United States Code, and may com-
pensate such experts and consultants at rates not to ex-
ceed the daily rate prescribed for level V of the Executive
Schedule under section 5316 of title 5, United States
Code.
(c) ACCEPTANCE
OF VOLUNTARY SERVICES.—(1)
Notwithstanding section 1342 of title 31, United States
Code, the Administrator may accept, subject to regula-
tions issued by the Office of Personnel Management, vol-
untary services if the services—
(A) are to be uncompensated; and
(B) will not be used to displace any employee.
(2) Any individual who provides voluntary services
under this subsection shall not be considered a Federal
employee for any purpose other than for purposes of chap-
ter 81 of title 5, United States Code (relating to com-
pensation for injury) and sections 2671 through 2680 of
title 28, United States Code (relating to tort claims).
1459
SEC. 17322. GENERAL ADMINISTRATIVE PROVISIONS.
(a) GENERAL AUTHORITY.—In carrying out any
function transferred by this subtitle, the Administrator,
or any officer or employee of the Agency, may exercise
any authority available by law with respect to such func-
tion to the official or agency from which such function
is transferred, and the actions of the Administrator in ex-
ercising such authority shall have the same force and ef-
fect as when exercised by such official or agency.
(b) DELEGATION.—Except as otherwise provided in
this subtitle, the Administrator may delegate any function
to such officers and employees of the Agency as the Ad-
ministrator may designate, and may authorize such suc-
cessive redelegations of such functions within the Agency
as may be necessary or appropriate. No delegation of func-
tions by the Administrator under this section or under any
other provision of this Act shall relieve the Administrator
of responsibility for the administration of such functions.
(c) REORGANIZATION.—(1) Except as provided in
paragraph (2), the Administrator may allocate or reallo-
cate functions among the officers of the Agency, and may
establish, consolidate, alter, or abolish such offices or posi-
tions within the Agency as may be necessary or appro-
priate.
(2) The Administrator may not—
1460
(A) abolish any office or position transferred to
the Agency and established by statute, or any func-
tion vested by statute in such an office or an officer
of such an office;
(B) abolish any office or position established by
this subtitle; or
(C) alter the delegation of functions to any spe-
cific office or position required by this subtitle.
SEC. 17323. CONTRACTS.
(a) IN GENERAL.—Subject to the Federal Property
and Administrative Services Act of 1949 and other appli-
cable Federal law, the Administrator may make, enter
into, and perform such contracts, grants, leases, coopera-
tive agreements, and other similar transactions with Fed-
eral or other public agencies (including State and local
governments) and private organizations and persons, and
to make such payments, by way of advance or reimburse-
ment, as the Administrator may determine necessary or
appropriate to carry out functions of the Administrator
or the Agency.
(b) APPROPRIATION AUTHORITY REQUIRED.—No
authority to enter into contracts or to make payments
under this subtitle shall be effective except to such extent
or in such amounts as are provided in advance under ap-
propriation Acts.
1461
SEC. 17324. REGULATIONS.
The Administrator may prescribe such rules and reg-
ulations as the Administrator considers necessary or ap-
propriate to administer and manage the functions of the
Administrator or the Agency, in accordance with chapter
5 of title 5, United States Code.
SEC. 17325. SEAL.
The Administrator shall cause a seal of office to be
made for the Agency of such design as the Administrator
shall approve. Judicial notice shall be taken of such seal.
SEC. 17326. ANNUAL REPORT.
The Administrator shall, as soon as practicable after
the close of each fiscal year, make a single, comprehensive
report to the President for transmission to the Congress
on the activities of the Agency during such fiscal year.
CHAPTER 3—TRANSITIONAL, SAVINGS,
AND CONFORMING PROVISIONS
SEC. 17331. TRANSFER AND ALLOCATION OF APPROPRIA-
TIONS AND PERSONNEL.
Except as otherwise provided in this subtitle, the per-
sonnel employed in connection with, and the assets, liabil-
ities, contracts, property, records, and unexpended balance
of appropriations, authorizations, allocations, and other
funds employed, held, used, arising from, available to, or
to be made available in connection with, the functions and
offices, or portions thereof, transferred by this subtitle,
1462
subject to section 1531 of title 31, United States Code,
shall be transferred to the Administrator for appropriate
allocation. Unexpended funds transferred pursuant to this
subsection shall be used only for the purposes for which
the funds were originally authorized and appropriated.
SEC. 17332. EFFECT ON PERSONNEL.
(a) PRESERVATION OF GRADE AND COMPENSATION
FOR 1 YEAR.—Except as otherwise provided in this sub-
title, the transfer pursuant to this Act of full-time person-
nel (except special Government employees) and part-time
personnel holding permanent positions shall not cause any
such employee to be separated or reduced in grade or com-
pensation for 1 year after the date of transfer to the Agen-
cy.
(b) PRESERVATION OF COMPENSATION FOR EXECU-
TIVE SCHEDULE APPOINTEES.—Any person who, on the
day preceding the date of the transfer of functions and
offices under section 17313, held a position compensated
in accordance with the Executive Schedule prescribed in
chapter 53 of title 5, United States Code, and who, with-
out a break in service, is appointed in the Agency to a
position having duties comparable to the duties performed
immediately preceding such appointment shall continue to
be compensated in the new position at not less than the
1463
rate provided for the previous position, for the duration
of the service of such person in the new position.
SEC. 17333. INCIDENTAL TRANSFERS.
(a) IN GENERAL.—The Director of the Office of
Management and Budget, in conjunction with the Admin-
istrator, shall make such determinations as may be nec-
essary with regard to the functions, offices, or portions
thereof transferred by this subtitle, and make such addi-
tional incidental dispositions of personnel, assets, liabil-
ities, grants, contracts, property, records, and unexpended
balances of appropriations, authorizations, allocations,
and other funds held, used, arising from, available to, or
to be made available in connection with such functions,
offices, or portions thereof, as may be necessary to carry
out this subtitle. The Director of the Office of Manage-
ment and Budget shall provide for the termination of the
affairs of all entities terminated by this subtitle and, in
conjunction with the Administrator, for such further
measures and dispositions as may be necessary to effec-
tuate the purposes of this subtitle.
(b) ALLOCATION OF SES POSITIONS.—After con-
sultation with the Director of the Office of Personnel Man-
agement, the Director of the Office of Management and
Budget may make such determinations as may be nec-
essary with regard to the transfer of positions within the
1464
Senior Executive Service in connection with functions and
offices transferred by this subtitle.
SEC. 17334. SAVINGS PROVISIONS.
(a) CONTINUITY OF LEGAL FORCE AND EFFECT.—
All orders, determinations, rules, regulations, permits,
grants, contracts, certificates, licenses, and privileges—
(1) which have been issued, made, granted, or
allowed to become effective by the President, by any
Federal department or agency or official thereof, or
by a court of competent jurisdiction, in the perform-
ance of functions which are transferred under this
subtitle to the Administrator or the Agency; and
(2) which are in effect at the time of such
transfer,
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked by
the President, the Administrator, or the authorized offi-
cial, a court of competent jurisdiction, or by operation of
law.
(b) PENDING PROCEEDINGS.—(1) This subtitle shall
not affect any proceedings, including notices of proposed
rulemaking, pending on the date of the transfer of func-
tions and offices under section 17313 before any depart-
ment, agency, commission, or component thereof, func-
tions of which are transferred by this subtitle. Such pro-
1465
ceedings, to the extent that they relate to functions so
transferred, shall be continued, except as provided in para-
graph (3).
(2) Orders may be issued in such proceedings, ap-
peals may be taken therefrom, and payments may be made
pursuant to such orders, as if this subtitle had not been
enacted. Orders issued in any such proceedings shall con-
tinue in effect until modified, terminated, superseded, or
revoked by the Secretary, by a court of competent jurisdic-
tion, or by operation of law.
(3) Nothing in this subsection shall be considered to
prohibit the discontinuance or modification of any such
proceeding under the same terms and conditions and to
the same extent that such proceeding could have been dis-
continued or modified if this subtitle had not been enacted.
(4) The Administrator may prescribe regulations pro-
viding for the orderly transfer of proceedings continued
under this subsection to the Agency.
(c) NO EFFECT ON JUDICIAL PROCEEDINGS.—Ex-
cept as provided in subsection (e)—
(1) the transfer of functions and offices under
section 17313 shall not affect suits commenced prior
to the date of such transfer; and
(2) in all such suits, proceedings shall be had,
appeals taken, and judgments rendered in the same
1466
manner and effect as if this subtitle had not been
enacted.
(d) NONABATEMENT
OF PROCEEDINGS.—No suit,
action, or other proceeding commenced by or against any
officer in the official capacity of such individual as an offi-
cer of any department or agency, functions of which are
transferred by this subtitle, shall abate by reason of the
enactment of this subtitle. No cause of action by or
against any department or agency, functions of which are
transferred by this subtitle, or by or against any officer
thereof in the official capacity of such officer shall abate
by reason of the enactment of this subtitle.
(e) CONTINUATION OF PROCEEDING WITH SUBSTI-
TUTION OF PARTIES.—If, before the date of the transfer
of functions and offices under section 17313, any depart-
ment or agency, or officer thereof in the official capacity
of such officer, is a party to a suit, and under this subtitle
any function of such department, agency, or officer is
transferred to the Administrator or any other official of
the Agency, then such suit shall be continued with the Ad-
ministrator or other appropriate official of the Agency
substituted or added as a party.
(f) REVIEWABILITY
OF
ORDERS
AND
ACTIONS
UNDER TRANSFERRED FUNCTIONS.—Orders and actions
of the Administrator in the exercise of functions trans-
1467
ferred under this subtitle shall be subject to judicial review
to the same extent and in the same manner as if such
orders and actions had been by the agency or office, or
part thereof, exercising such functions immediately pre-
ceding their transfer. Any statutory requirements relating
to notice, hearings, action upon the record, or administra-
tive review that apply to any function transferred by this
subtitle shall apply to the exercise of such function by the
Administrator.
SEC. 17335. REFERENCES.
With respect to any function transferred by this sub-
title and exercised on or after the date of such transfer,
any reference in any other Federal law to any department,
commission, or agency or to any officer or office the func-
tions of which are so transferred is deemed to refer to
the Administrator, other official, or component of the
Agency to which this subtitle transfers such functions.
SEC. 17336. CONFORMING AMENDMENTS.
Chapter 35 of title 44, United States Code, is amend-
ed—
(1) in section 3504—
(A) in subsection (a) by striking ‘‘Federal
statistical activities,’’; and
(B) by striking subsection (d); and
(2) in section 3514(a)—
1468
(A) by adding ‘‘and’’ after the semicolon at
the end of paragraph (8);
(B) by striking ‘‘; and’’ at the end of para-
graph (9)(C) and inserting a period; and
(C) by striking paragraph (10).
SEC. 17337. TRANSITION.
(a) USE OF FUNDS.—Funds available to any depart-
ment or agency (or any official or component thereof), the
functions or offices of which are transferred to the Admin-
istrator or the Agency by this subtitle, may, with the ap-
proval of the Director of the Office of Management and
Budget, be used to pay the compensation and expenses
of any officer appointed pursuant to this subtitle and other
transitional and planning expenses associated with the es-
tablishment of the Agency or transfer of functions or of-
fices thereto until such time as funds for such purposes
are otherwise available.
(b) USE OF PERSONNEL.—With the consent of the
appropriate department or agency head concerned, the Ad-
ministrator may utilize the services of such officers, em-
ployees, and other personnel of the departments and agen-
cies from which functions or offices have been transferred
to the Administrator or the Agency, for such period of
time as may reasonably be needed to facilitate the orderly
implementation of this subtitle.
1469
SEC. 17338. INTERIM APPOINTMENTS.
(a) AUTHORITY TO APPOINT.—Notwithstanding any
other provision of law, in the event that one or more offi-
cers required by this subtitle to be appointed by and with
the advice and consent of the Senate shall not have en-
tered upon office on the date of the transfer of functions
and offices under section 17313, the President may des-
ignate an officer in the executive branch to act in such
office for 120 days or until the office is filled as provided
in this subtitle, whichever occurs first.
(b) COMPENSATION.—Any officer acting in an office
pursuant to subsection (a) shall receive compensation at
the rate prescribed for such office under this subtitle.
Subtitle D—United States Trade
Administration
CHAPTER 1—GENERAL PROVISIONS
SEC. 17401. FINDINGS.
The Congress finds that—
(1) principal national goals of the United States
are to—
(A) maintain United States leadership in
international trade liberalization and expansion
efforts;
(B) reinvigorate the ability of the United
States economy to compete in international
1470
markets and to respond flexibly to changes in
international competition; and
(C) expand United States participation in
international trade through aggressive pro-
motion and marketing of American products
and services;
(2) the economy of the United States is so inex-
tricably linked with the international economic sys-
tem that all domestic economic sectors are influ-
enced by the dynamics of global trade and invest-
ment;
(3) the expansion of United States participation
in international trade will improve the general wel-
fare of the people of the United States by increasing
demand for American products and services, creat-
ing jobs, and increasing the gross national product;
(4) business, labor, and all levels of government
must place the highest priority on developing meth-
ods and policies to achieve the goals described in
paragraph (1), and the achievement of such goals is
dependent on a marked improvement in the capabil-
ity of United States businesses to compete in foreign
markets;
1471
(5) the Federal Government can enhance the
capability of United States businesses to compete in
foreign markets by acting to—
(A) reduce trade barriers to sales and in-
vestments by such businesses;
(B) promote American goods and services
in foreign countries and encourage aggressive
participation by the private sector in the inter-
national marketplace; and
(C) promote and maintain an international
trade system that establishes open, transparent,
and fair trade rules and leads to the expansion
of United States trade;
(6) effective and efficient Government action to
enhance the capability of United States businesses
to compete in foreign markets requires coordination
of the development and implementation of Govern-
ment policies relating to the international trade in-
terests of the United States;
(7) effective and efficient Government action
with respect to international trade further requires
the employment of personnel consisting of individ-
uals who, like the personnel of the governments of
United States trading partners, are highly experi-
1472
enced and educated in international trade operations
and negotiations;
(8) the present organizational structure of Gov-
ernment administration of international trade activi-
ties is too diffuse and leads to inconsistent and con-
flicting policies and actions;
(9) such inconsistent and contradictory policies
and actions inhibit domestic trade interests, create
trade opportunities for our international competi-
tors, and discourage experienced Government per-
sonnel from career service in international trade ac-
tivities;
(10) United States performance in international
trade is fundamentally linked to the competitiveness
of American industry in the world economy;
(11) improvements in the competitiveness of
United States industry, products, and services can
be aided by reducing traditional antagonisms among
government, industry, labor, and the public;
(12) a lack of analytical capability and knowl-
edge concerning the competitive position of Amer-
ican industries and foreign industries greatly ham-
pers or delays the ability of the United States to for-
mulate responsible trade policies and policies that
1473
affect the international competitiveness of domestic
industries;
(13) the consolidation of Government functions
relating to international trade, including functions
relating to technical analysis, policymaking, inter-
national negotiation, and operational responsibilities,
into the United States Trade Administration shall
provide the needed elevation and coordination of
Government activity in international trade;
(14) the continued prosperity and overall com-
petitive posture of the United States calls for a deci-
sive and unified trade policy that vigorously pro-
motes an equitable international trade environment
in which the United States is able to compete fully
and fairly;
(15) continued United States leadership in the
world economy requires the formulation and imple-
mentation of a trade policy that is delineated and
understood by the rest of the world; and
(16) establishing a decisive and unified trade
policy has become a number one priority of the Unit-
ed States;
(17) enhancing the process of consultation and
advice between the executive branch, the Congress,
and the private sector will assist in developing the
1474
consensus on and support for the trade policy of the
United States;
(18) there is no one single agency or depart-
ment within the executive branch with overall re-
sponsibility for the development, coordination, imple-
mentation, and administration of the United States
trade policy, and the proliferation and division of
agencies within the executive branch have weakened
the overall leadership of the United States in inter-
national trade matters; and
(19) the economic well-being of the American
people will be substantially enhanced through the es-
tablishment of the United States Trade Administra-
tion.
SEC. 17402. DEFINITIONS.
For purposes of this subtitle, unless otherwise pro-
vided or indicated by the context—
(1) the term ‘‘Administration’’ means the Unit-
ed States Trade Administration;
(2) the term ‘‘Federal agency’’ has the meaning
given to the term ‘‘agency’’ by section 551(1) of title
5, United States Code;
(3) the term ‘‘function’’ means any duty, obli-
gation, power, authority, responsibility, right, privi-
lege, activity, or program;
1475
(4) the term ‘‘office’’ includes any office, ad-
ministration, agency, institute, unit, organizational
entity, or component thereof; and
(5) the term ‘‘USTR’’ means the United States
Trade Representative as provided for under section
17411.
CHAPTER 2—UNITED STATES TRADE
ADMINISTRATION
SEC. 17411. ESTABLISHMENT OF THE ADMINISTRATION.
(a) IN GENERAL.—There is established the United
States Trade Administration which shall be a free-stand-
ing establishment in the executive branch of Government
as defined under section 104 of title 5, United States
Code. The United States Trade Representative shall be
the Administrator of the United States Trade Administra-
tion and shall be appointed by the President, by and with
the advice and consent of the Senate.
(b) AMBASSADOR STATUS.—The USTR shall have
the rank and status of Ambassador and shall represent
the United States in all trade negotiations conducted by
the Administration.
(c) SUCCESSOR TO DEPARTMENT OF COMMERCE.—
The Administration shall be deemed to be the successor
to the Department of Commerce for the purposes of proto-
col in any trade-related matter.
1476
SEC. 17412. FUNCTIONS OF THE USTR.
(a) IN GENERAL.—In addition to the functions trans-
ferred to the USTR by this subtitle, such other functions
as the President may assign or delegate to the USTR, and
such other functions as the USTR may, after the effective
date of this subtitle, be required to carry out by law, the
USTR shall—
(1) serve as the principal advisor to the Presi-
dent on international trade policy and advise the
President on the impact of other policies of the
United States Government on international trade;
(2) exercise primary responsibility, with the ad-
vice of the interagency organization established
under section 242 of the Trade Expansion Act of
1962, for developing and implementing international
trade policy, including commodity matters and, to
the extent related to international trade policy, di-
rect investment matters and, in exercising such re-
sponsibility, advance and implement the goals de-
scribed in section 17401(1) as the primary mandate
of the Administration;
(3) exercise lead responsibility for the conduct
of international trade negotiations, including inter-
national negotiations relating to commodity matters,
intellectual property rights, services, and direct in-
1477
vestment negotiations, in which the United States
participates;
(4) exercise lead responsibility for the establish-
ment of a national export strategy, including policies
designed to implement such strategy;
(5) with the advice of the interagency organiza-
tion established under section 242 of the Trade Ex-
pansion Act of 1962, issue policy guidance to other
Federal agencies on international trade, commodity,
and direct investment functions to the extent nec-
essary to assure the coordination of international
trade policy;
(6) have general operational responsibility for
major nonagricultural international trade functions
under Reorganization Plan No. 3 of 1979;
(7) seek and promote new opportunities for
United States products and services to compete in
the world marketplace;
(8) assist small businesses in developing export
markets;
(9) enforce the laws of the United States relat-
ing to trade;
(10) analyze international economic trends and
developments;
1478
(11) report directly to the Congress on the ad-
ministration of, and matters pertaining to, the trade
agreements program under the Omnibus Trade and
Competitiveness Act of 1988, the Trade Act of
1974, the Trade Expansion Act of 1962, and section
350 of the Tariff Act of 1930;
(12) report directly to the Congress, on an an-
nual basis—
(A) the status of enforcement of inter-
national agreements to which the United States
is a party that provide for the protection of in-
tellectual property rights;
(B) analyses of the impact on United
States citizens and businesses of piracy of intel-
lectual property by foreign entities; and
(C) any recommendations for new inter-
national agreements to provide for the protec-
tion of intellectual property rights;
(13) keep each official adviser to the United
States delegations to international conferences,
meetings, and negotiation sessions relating to trade
agreements who is appointed by a committee of the
Senate or the House of Representatives under sec-
tion 161 of the Trade Act of 1974 currently in-
formed on United States negotiating objectives with
1479
respect to trade agreements, the status of negotia-
tions in progress with respect to such agreements,
and the nature of any changes in domestic law or
the administration thereof which the USTR may
recommend to the Congress to carry out any trade
agreement;
(14) consult and cooperate with State and local
governments and other interested parties on inter-
national trade matters of interest to such govern-
ments and parties, and to the extent related to inter-
national trade matters, on investment matters, and,
when appropriate, hold informal public hearings;
(15) serve as the principal advisor to the Presi-
dent in identifying and assessing the consequences
of any Government policies that adversely affect, or
have the potential to adversely affect, the inter-
national competitiveness of United States industries
and services;
(16) pursue the enforcement of international
agreements to which the United States is a party
that provide for the protection of intellectual prop-
erty rights, seek new international agreements to
minimize theft of intellectual property owned by
United States citizens and businesses, and otherwise
promote protection of intellectual property rights.
1480
(b) INTERAGENCY ORGANIZATION.—The USTR shall
chair the interagency organization established under sec-
tion 242 of the Trade Expansion Act of 1962.
(c) NATIONAL SECURITY COUNCIL.—The USTR
shall be a member of the National Security Council.
(d) ADVISORY COUNCIL.—The USTR shall be Dep-
uty Chairman of the National Advisory Council on Inter-
national Monetary and Financial Policies established
under Executive Order 11269, issued February 14, 1966.
(e) AGRICULTURE.—(1) The USTR shall consult
with the Secretary of Agriculture or the designee of the
Secretary of Agriculture on all matters that potentially in-
volve international trade in agricultural products.
(2) If an international meeting for negotiation or con-
sultation includes discussion of international trade in agri-
cultural products, the USTR or the designee of the USTR
shall be Chairman of the United States delegation to such
meeting and the Secretary of Agriculture or the designee
of such Secretary shall be Vice Chairman. The provisions
of this paragraph shall not limit the authority of the
USTR under subsection (h) to assign to the Secretary of
Agriculture responsibility for the conduct of, or participa-
tion in, any trade negotiation or meeting.
(f) TRADE PROMOTION.—The USTR shall be the
chairperson of the Trade Promotion Coordinating Com-
1481
mittee established under section 2312 of the Export En-
hancement Act of 1988 (15 U.S.C. 4727).
(g) NATIONAL ECONOMIC COUNCIL.—The USTR
shall be a member of the National Economic Council es-
tablished under Executive Order No. 12835, issued Janu-
ary 25, 1993.
(h) INTERNATIONAL TRADE NEGOTIATIONS.—Ex-
cept where expressly prohibited by law, the USTR, at the
request or with the concurrence of the head of any other
Federal agency, may assign the responsibility for conduct-
ing or participating in any specific international trade ne-
gotiation or meeting to the head of such agency whenever
the USTR determines that the subject matter of such
international trade negotiation is related to the functions
carried out by such agency.
SEC. 17413. DEPUTY ADMINISTRATOR OF THE UNITED
STATES TRADE ADMINISTRATION.
(a) ESTABLISHMENT.—There shall be in the Admin-
istration the Deputy Administrator of the United States
Trade Administration, who shall be appointed by the
President, by and with the advice and consent of the Sen-
ate.
(b) 
ABSENCE, 
DISABILITY, 
OR
VACANCY
OF
USTR.—The Deputy Administrator of the United States
Trade Administration shall act for and exercise the func-
1482
tions of the USTR during the absence or disability of the
USTR or in the event the office of the USTR becomes
vacant. The Deputy Administrator of the United States
Trade Administration shall act for and exercise the func-
tions of the USTR until the absence or disability of the
USTR no longer exists or a successor to the USTR has
been appointed by the President and confirmed by the
Senate.
(c) FUNCTIONS OF DEPUTY ADMINISTRATOR OF THE
UNITED STATES TRADE ADMINISTRATION.—The Deputy
Administrator of the United States Trade Administration
shall exercise all functions, under the direction of the
USTR, transferred to or established in the Administra-
tion, except those functions exercised by the Deputy Unit-
ed States Trade Representatives, the Inspector General,
and the General Counsel of the Administration, as pro-
vided by this subtitle.
SEC. 17414. DEPUTY UNITED STATES TRADE REPRESENTA-
TIVES.
(a) ESTABLISHMENT.—There shall be in the Admin-
istration 2 Deputy United States Trade Representatives,
who shall be appointed by the President, by and with the
advice and consent of the Senate. The Deputy United
States Trade Representatives shall exercise all functions
under the direction of the USTR, and shall include—
1483
(1) the Deputy United States Trade Represent-
ative for Negotiations; and
(2) the Deputy United States Trade Represent-
ative to the World Trade Organization.
(b) FUNCTIONS OF DEPUTY UNITED STATES TRADE
REPRESENTATIVES.—(1) The Deputy United States
Trade Representative for Negotiations shall exercise all
functions transferred under section 17431 and shall have
the rank and status of Ambassador.
(2) The Deputy United States Trade Representative
to the World Trade Organization shall exercise all func-
tions relating to representation to the World Trade Orga-
nization and shall have the rank and status of Ambas-
sador.
SEC. 17415. ASSISTANT ADMINISTRATORS.
(a) ESTABLISHMENT.—There shall be in the Admin-
istration 3 Assistant Administrators, who shall be ap-
pointed by the President, by and with the advice and con-
sent of the Senate. The Assistant Administrators shall ex-
ercise all functions under the direction of the Deputy Ad-
ministrator of the United States Trade Administration
and include—
(1) the Assistant Administrator for Export Ad-
ministration;
1484
(2) the Assistant Administrator for Import Ad-
ministration; and
(3) the Assistant Administrator for Trade and
Policy Analysis.
(b) FUNCTIONS OF ASSISTANT ADMINISTRATORS.—
(1) The Assistant Administrator for Export Administra-
tion shall exercise all functions transferred under section
17432(a)(1)(C).
(2) The Assistant Administrator for Import Adminis-
tration shall exercise all functions transferred under sec-
tion 17432(a)(1)(D).
(3) The Assistant Administrator for Trade and Policy
Analysis shall exercise all functions transferred under sec-
tion 17432(a)(1)(B) and all functions transferred under
section 17432(a)(2).
SEC. 17416. GENERAL COUNSEL.
There shall be in the Administration a General Coun-
sel, who shall be appointed by the President, by and with
the advice and consent of the Senate. The General Counsel
shall provide legal assistance to the USTR concerning the
activities, programs, and policies of the Administration.
SEC. 17417. INSPECTOR GENERAL.
There shall be in the Administration an Inspector
General who shall be appointed in accordance with the In-
1485
spector General Act of 1978, as amended by section
17471(b) of this Act.
SEC. 17418. CHIEF FINANCIAL OFFICER.
There shall be in the Administration a Chief Finan-
cial Officer who shall be appointed in accordance with sec-
tion 901 of title 31, United States Code, as amended by
section 17471(e) of this Act. The Chief Financial Officer
shall perform all functions prescribed by the Deputy Ad-
ministrator of the United States Trade Administration,
under the direction of the Deputy Administrator.
CHAPTER 3—TRANSFERS TO THE
ADMINISTRATION
SEC. 17431. OFFICE OF THE UNITED STATES TRADE REP-
RESENTATIVE.
There are transferred to the USTR of the United
States Trade Administration all functions of the United
States Trade Representative and the Office of the United
States Trade Representative in the Executive Office of the
President and all functions of any officer or employee of
such Office.
SEC. 17432. TRANSFERS FROM THE DEPARTMENT OF COM-
MERCE.
(a) IN GENERAL.—There are transferred to the
USTR the following functions:
1486
(1) All functions of, and all functions performed
under the direction of, the following officers and em-
ployees of the Department of Commerce:
(A) The Under Secretary of Commerce for
International Trade.
(B) The Assistant Secretary of Commerce
for International Economic Policy and the As-
sistant Secretary of Commerce for Trade Devel-
opment.
(C) The Under Secretary of Commerce for
Export Administration.
(D) The Assistant Secretary of Commerce
for Import Administration.
(2) All functions of the Secretary of Commerce
relating to the National Trade Data Bank.
(3) All functions of the Secretary of Commerce
under the Tariff Act of 1930, the Uruguay Round
Agreements Act, the Trade Act of 1974, and other
trade-related Acts for which responsibility is not oth-
erwise assigned under this title.
(b) UNITED STATES
AND FOREIGN COMMERCIAL
SERVICE.—
(1) RENAMING
AND
ABOLITION
OF
CERTAIN
FUNCTIONS.—The United States and Foreign Com-
mercial Service shall, upon the effective date speci-
1487
fied in section 17109(a), be known as the ‘‘United
States Trade Service’’ (hereafter in this subsection
referred to as the ‘‘USTS’’). All operations of the
USTS in the United States (other than those per-
formed at the headquarters office referred to in sec-
tion 2301(c) of the Export Enhancement Act of
1988 (15 U.S.C. 4721(c)) with respect to the for-
eign operations of the USTS) are abolished.
(2) TRANSFER TO USTR.—The USTS and its
functions are transferred to the USTR. All functions
performed immediately before the effective date
specified in section 17109(a) by the Secretary of
Commerce or the Department of Commerce with re-
spect to the USTS are transferred to the USTR.
(3) DIRECTOR GENERAL.—(A) There shall be a
Director General of Trade who shall be appointed by
the President, by and with the advice and consent
of the Senate, who shall have the rank and status
of Ambassador, and who shall be the head of the
USTS and shall be responsible for other trade pro-
motion functions of the Administration. The Direc-
tor General of Trade shall report to the USTR.
(B) The individual serving as Assistant Sec-
retary of Commerce and Director General of Trade
immediately before the effective date specified in sec-
1488
tion 17109(a) may serve as the Director General of
Trade on and after such effective date until a suc-
cessor has taken office. Compensation for any serv-
ice under this subparagraph shall be at the rate at
which the individual was compensated immediately
before the effective date specified in section
17109(a).
(4) TRANSFER OF USTS OFFICERS.—The trans-
fer to the USTR pursuant to this section of any
Commercial Service Officer serving immediately be-
fore the effective date specified in section 17109(a)
shall not cause such officer to be reduced in rank,
grade, or compensation.
SEC. 17433. TRADE AND DEVELOPMENT AGENCY.
(a) ABOLITION OF AGENCY.—The Trade and Devel-
opment Agency is abolished.
(b) CONFORMING AMENDMENT.—Section 661 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2421) is re-
pealed.
SEC. 17434. FUNCTIONS WITH RESPECT TO TEXTILE AGREE-
MENTS.
(a) TRANSFER
OF FUNCTIONS.—Notwithstanding
the provisions of Executive Order 11651 and Executive
Order 12475 (7 U.S.C. 1854 note), the functions of the
Committee for the Implementation of Textile Agreements
1489
(hereafter in this section referred to as ‘‘CITA’’) are
transferred to the USTR, except for all functions related
to the determination of the existence of serious damage
or actual threat thereof to the domestic United States tex-
tile industry which are transferred to the International
Trade Commission.
(b) ABOLITION OF CITA.—CITA is abolished.
SEC. 17435. PLAN FOR CONSOLIDATION OF TRADE ACTIVI-
TIES.
Within 6 months after the date of the enactment of
this Act, the USTR shall transmit to the Congress a com-
prehensive plan to consolidate Federal trade programs and
activities. The plan shall provide for—
(1) an itemized summary of all Federal trade
programs and activities identified by authorizing
statute or executive order, including staff allocation
and resource expenditures;
(2) a unified budget for reallocating Federal
trade priorities;
(3) identification of and recommendations for
the elimination of overlapping and duplicative mis-
sions and functions among Federal trade programs
and activities; and
(4) identification of present cooperative activi-
ties among Federal, State, and private trade pro-
1490
grams, and recommendations for Federal priorities
and long-term opportunities for developing and in-
creasing such cooperation.
CHAPTER 4—ADMINISTRATIVE
PROVISIONS
SEC. 17441. PERSONNEL PROVISIONS.
(a) APPOINTMENTS.—The USTR may appoint and
fix the compensation of such officers and employees, in-
cluding investigators, attorneys, and administrative law
judges, as may be necessary to carry out the functions
of the USTR and the Administration. Except as otherwise
provided by law, such officers and employees shall be ap-
pointed in accordance with the civil service laws and their
compensation fixed in accordance with title 5, United
States Code.
(b) POSITIONS ABOVE GS–15.—(1) At the request
of the USTR, the Director of the Office of Personnel Man-
agement shall, under section 5108 of title 5, United States
Code, provide for the establishment in a grade level above
GS–15 of the General Service, and in the Senior Executive
Service, of a number of positions in the Administration
equal to the number of positions in that grade level which
were used primarily for the performance of functions and
offices transferred by this subtitle and which were as-
1491
signed and filled on the day before the effective date of
this subtitle.
(2) Appointments to positions provided for under this
subsection may be made without regard to the provisions
of section 3324 of title 5, United States Code, if the indi-
vidual appointed in such position is an individual who is
transferred in connection with the transfer of functions
and offices under this subtitle and, on the day before the
effective date of this subtitle, holds a position and has du-
ties comparable to those of the position to which appointed
under this subsection.
(3) The authority under this subsection with respect
to any position established at a grade level above GS–15
shall terminate when the person first appointed to fill such
position ceases to hold such position.
(4) For purposes of section 414(a)(3)(A) of the Civil
Service Reform Act of 1978, an individual appointed
under this subsection shall be deemed to occupy the same
position as the individual occupied on the day before the
effective date of this subtitle.
(c) EXPERTS AND CONSULTANTS.—The USTR may
obtain the services of experts and consultants in accord-
ance with section 3109 of title 5, United States Code, and
compensate such experts and consultants for each day (in-
cluding traveltime) at rates not in excess of the maximum
1492
rate of pay for a position at a grade level above GS–15
of the General Schedule under section 5332 of such title.
The USTR may pay experts and consultants who are serv-
ing away from their homes or regular place of business
travel expenses and per diem in lieu of subsistence at rates
authorized by sections 5702 and 5703 of such title for
persons in Government service employed intermittently.
(d) VOLUNTARY SERVICES.—(1)(A) The USTR is
authorized to accept voluntary and uncompensated serv-
ices without regard to the provisions of section 1342 of
title 31, United States Code, if such services will not be
used to displace Federal employees employed on a full-
time, part-time, or seasonal basis.
(B) The USTR is authorized to accept volunteer serv-
ice in accordance with the provisions of section 3111 of
title 5, United States Code.
(2) The USTR is authorized to provide for incidental
expenses, including but not limited to transportation, lodg-
ing, and subsistence for individuals who provide voluntary
services under subparagraph (A) or (B) of paragraph (1).
(3) An individual who provides voluntary services
under paragraph (1)(A) shall not be considered a Federal
employee for any purpose other than for purposes of chap-
ter 81 of title 5, United States Code, relating to com-
1493
pensation for work injuries, and chapter 171 of title 28,
United States Code, relating to tort claims.
(e) FOREIGN SERVICE POSITIONS.—In order to as-
sure United States representation in trade matters at a
level commensurate with the level of representation main-
tained by industrial nations which are major trade com-
petitors of the United States, the Secretary of State shall
classify certain positions at Foreign Service posts as com-
mercial minister positions and shall assign members of the
Foreign Service performing functions of the Administra-
tion, with the concurrence of the USTR, to such positions
in nations which are major trade competitors of the Unit-
ed States. The Secretary of State shall obtain and use the
recommendations of the USTR with respect to the number
of positions to be so classified under this subsection.
SEC. 17442. DELEGATION AND ASSIGNMENT.
Except where otherwise expressly prohibited by law
or otherwise provided by this subtitle, the USTR may dele-
gate any of the functions transferred to the USTR by this
subtitle and any function transferred or granted to the
USTR after the effective date of this subtitle to such offi-
cers and employees of the Administration as the USTR
may designate, and may authorize successive redelegations
of such functions as may be necessary or appropriate. No
delegation of functions by the USTR under this section
1494
or under any other provision of this subtitle shall relieve
the USTR of responsibility for the administration of such
functions.
SEC. 17443. SUCCESSION.
(a) ORDER OF SUCCESSION.—Subject to the author-
ity of the President, and except as provided in section
17413(b), the USTR shall prescribe the order by which
officers of the Administration who are appointed by the
President, by and with the advice and consent of the Sen-
ate, shall act for, and perform the functions of, the USTR
or any other officer of the Administration appointed by
the President, by and with the advice and consent of the
Senate, during the absence or disability of the USTR or
such other officer, or in the event of a vacancy in the office
of the USTR or such other officer.
(b) CONTINUATION.—Notwithstanding any other pro-
vision of law, and unless the President directs otherwise,
an individual acting for the USTR or another officer of
the Administration pursuant to subsection (a) shall con-
tinue to serve in that capacity until the absence or disabil-
ity of the USTR or such other officer no longer exists or
a successor to the USTR or such other officer has been
appointed by the President and confirmed by the Senate.
1495
SEC. 17444. REORGANIZATION.
(a) IN GENERAL.—Subject to subsection (b), the
USTR is authorized to allocate or reallocate functions
among the officers of the Administration, and to establish,
consolidate, alter, or discontinue such organizational enti-
ties in the Administration as may be necessary or appro-
priate.
(b) EXCEPTION.—The USTR may not exercise the
authority under subsection (a) to establish, consolidate,
alter, or discontinue any organizational entity in the Ad-
ministration or allocate or reallocate any function of an
officer or employee of the Administration that is inconsist-
ent with any specific provision of this subtitle.
SEC. 17445. RULES.
The USTR is authorized to prescribe, in accordance
with the provisions of chapters 5 and 6 of title 5, United
States Code, such rules and regulations as the USTR de-
termines necessary or appropriate to administer and man-
age the functions of the USTR or the Administration.
SEC. 17446. FUNDS TRANSFER.
The USTR may, when authorized in an appropriation
Act in any fiscal year, transfer funds from one appropria-
tion to another within the Administration, except that no
appropriation for any fiscal year shall be either increased
or decreased by more than 10 percent and no such trans-
1496
fer shall result in increasing any such appropriation above
the amount authorized to be appropriated therefor.
SEC. 17447. CONTRACTS, GRANTS, AND COOPERATIVE
AGREEMENTS.
(a) IN GENERAL.—Subject to the provisions of the
Federal Property and Administrative Services Act of
1949, the USTR may make, enter into, and perform such
contracts, leases, cooperative agreements, grants, or other
similar transactions with public agencies, private organiza-
tions, and persons, and make payments (in lump sum or
installments, and by way of advance or reimbursement,
and, in the case of any grant, with necessary adjustments
on account of overpayments and underpayments) as the
USTR considers necessary or appropriate to carry out the
functions of the USTR or the Administration.
(b) EXCEPTION.—Notwithstanding any other provi-
sion of this subtitle, the authority to enter into contracts
or to make payments under this subtitle shall be effective
only to such extent or in such amounts as are provided
in advance in appropriation Acts. This subsection does not
apply with respect to the authority granted under section
449.
1497
SEC. 17448. USE OF FACILITIES.
(a) USE BY USTR.—With their consent, the USTR,
with or without reimbursement, may use the research,
services, equipment, and facilities of—
(1) an individual,
(2) any public or private nonprofit agency or
organization, including any agency or instrumental-
ity of the United States or of any State, the District
of Columbia, the Commonwealth of Puerto Rico, or
any territory or possession of the United States,
(3) any political subdivision of any State, the
District of Columbia, the Commonwealth of Puerto
Rico, or any territory or possession of the United
States, or
(4) any foreign government,
in carrying out any function of the USTR or the Adminis-
tration.
(b) USE OF USTR FACILITIES.—The USTR, under
terms, at rates, and for periods that the USTR considers
to be in the public interest, may permit the use by public
and private agencies, corporations, associations or other
organizations, or individuals, of any real property, or any
facility, structure or other improvement thereon, under the
custody of the USTR. The USTR may require permittees
under this section to maintain or recondition, at their own
1498
expense, the real property, facilities, structures, and im-
provements used by such permittees.
SEC. 17449. GIFTS AND BEQUESTS.
(a) IN GENERAL.—The USTR is authorized to ac-
cept, hold, administer, and utilize gifts and bequests of
property, both real and personal, for the purpose of aiding
or facilitating the work of the Administration. Gifts and
bequests of money and the proceeds from sales of other
property received as gifts or bequests shall be deposited
in the United States Treasury in a separate fund and shall
be disbursed on order of the USTR. Property accepted
pursuant to this subsection, and the proceeds thereof,
shall be used as nearly as possible in accordance with the
terms of the gift or bequest.
(b) TAX TREATMENT.—For the purpose of Federal
income, estate, and gift taxes, and State taxes, property
accepted under subsection (a) shall be considered a gift
or bequest to or for the use of the United States.
(c) INVESTMENT.—Upon the request of the USTR,
the Secretary of the Treasury may invest and reinvest in
securities of the United States or in securities guaranteed
as to principal and interest by the United States any mon-
eys contained in the fund provided for in subsection (a).
Income accruing from such securities, and from any other
property held by the USTR pursuant to subsection (a),
1499
shall be deposited to the credit of the fund, and shall be
disbursed upon order of the USTR.
SEC. 17450. WORKING CAPITAL FUND.
(a) ESTABLISHMENT.—The USTR is authorized to
establish for the Administration a working capital fund,
to be available without fiscal year limitation, for expenses
necessary for the maintenance and operation of such com-
mon administrative services as the USTR shall find to be
desirable in the interest of economy and efficiency, includ-
ing—
(1) a central supply service for stationery and
other supplies and equipment for which adequate
stocks may be maintained to meet in whole or in
part the requirements of the Administration and its
components;
(2) central messenger, mail, and telephone serv-
ice and other communications services;
(3) office space and central services for docu-
ment reproduction and for graphics and visual aids;
(4) a central library service; and
(5) such other services as may be approved by
the Director of the Office of Management and Budg-
et.
(b) OPERATION OF FUND.—The capital of the fund
shall consist of any appropriations made for the purpose
1500
of providing working capital and the fair and reasonable
value of such stocks of supplies, equipment, and other as-
sets and inventories on order as the USTR may transfer
to the fund, less the related liabilities and unpaid obliga-
tions. The fund shall be reimbursed in advance from avail-
able funds of agencies and offices in the Administration,
or from other sources, for supplies and services at rates
which will approximate the expense of operation, including
the accrual of annual leave and the depreciation of equip-
ment. The fund shall also be credited with receipts from
sale or exchange of property and receipts in payment for
loss or damage to property owned by the fund. There shall
be covered into the United States Treasury as miscellane-
ous receipts any surplus of the fund (all assets, liabilities,
and prior losses considered) above the amounts trans-
ferred or appropriated to establish and maintain the fund.
There shall be transferred to the fund the stocks of sup-
plies, equipment, other assets, liabilities, and unpaid obli-
gations relating to those services which the USTR deter-
mines will be performed.
SEC. 17451. SERVICE CHARGES.
(a) AUTHORITY.—Notwithstanding any other provi-
sion of law, the USTR may establish reasonable fees and
commissions with respect to applications, documents,
awards, loans, grants, research data, services, and assist-
1501
ance administered by the Administration, and the USTR
may change and abolish such fees and commissions. Be-
fore establishing, changing, or abolishing any schedule of
fees or commissions under this section, the USTR may
submit such schedule to the Congress.
(b) DEPOSITS.—The USTR is authorized to require
a deposit before the USTR provides any item, information,
service, or assistance for which a fee or commission is re-
quired under this section.
(c) DEPOSIT OF MONEYS.—Moneys received under
this section shall be deposited in the Treasury in a special
account for use by the USTR and are authorized to be
appropriated and made available until expended.
(d) FACTORS IN ESTABLISHING FEES AND COMMIS-
SIONS.—In establishing reasonable fees or commissions
under this section, the USTR may take into account—
(1) the actual costs which will be incurred in
providing the items, information, services, or assist-
ance concerned;
(2) the efficiency of the Government in provid-
ing such items, information, services, or assistance;
(3) the portion of the cost that will be incurred
in providing such items, information, services, or as-
sistance which may be attributed to benefits for the
general public rather than exclusively for the person
1502
to whom the items, information, services, or assist-
ance is provided;
(4) any public service which occurs through the
provision of such items, information, services, or as-
sistance; and
(5) such other factors as the USTR considers
appropriate.
(e) REFUNDS OF EXCESS PAYMENTS.—In any case
in which the USTR determines that any person has made
a payment which is not required under this section or has
made a payment which is in excess of the amount required
under this section, the USTR, upon application or other-
wise, may cause a refund to be made from applicable
funds.
SEC. 17452. SEAL OF DEPARTMENT.
The USTR shall cause a seal of office to be made
for the Administration of such design as the USTR shall
approve. Judicial notice shall be taken of such seal.
CHAPTER 5—RELATED AGENCIES
SEC. 17461. INTERAGENCY TRADE ORGANIZATION.
Section 242(a)(3) of the Trade Expansion Act of
1962 (19 U.S.C. 1872(a)(3)) is amended to read as fol-
lows:
‘‘(3)(A) The interagency organization estab-
lished under subsection (a) shall be composed of—
1503
‘‘(i) the United States Trade Representa-
tive, who shall be the chairperson,
‘‘(ii) the Secretary of Agriculture,
‘‘(iii) the Secretary of the Treasury,
‘‘(iv) the Secretary of Labor,
‘‘(v) the Secretary of State, and
‘‘(vi) the representatives of such other de-
partments and agencies as the United States
Trade Representative shall designate.
‘‘(B) The United States Trade Representative
may invite representatives from other agencies, as
appropriate, to attend particular meetings if subject
matters of specific functional interest to such agen-
cies are under consideration. It shall meet at such
times and with respect to such matters as the Presi-
dent or the chairperson shall direct.’’.
SEC. 17462. NATIONAL SECURITY COUNCIL.
The fourth paragraph of section 101(a) of the Na-
tional Security Act of 1947 (50 U.S.C. 402(a)) is amend-
ed—
(1) by redesignating clauses (5), (6), and (7) as
clauses (6), (7), and (8), respectively; and
(2) by inserting after clause (4) the following
new clause:
‘‘(5) the United States Trade Representative;’’.
1504
SEC. 17463. INTERNATIONAL MONETARY FUND.
Section 3 of the Bretton Woods Agreement Act is
amended by adding at the end the following new sub-
section:
‘‘(e) The United States executive director of the Fund
shall consult with the United States Trade Representative
with respect to matters under consideration by the Fund
which relate to trade.’’.
CHAPTER 6—CONFORMING AMENDMENTS
SEC. 17471. AMENDMENTS TO GENERAL PROVISIONS.
(a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)
of title 3, United States Code, is amended by inserting
‘‘the United States Trade Representative,’’ before ‘‘Sec-
retary of Labor,’’.
(b) INSPECTOR GENERAL.—The Inspector General
Act of 1978 is amended—
(1) in subsection 9(a)(1) by inserting after sub-
paragraph (W) the following:
‘‘(X) of the United States Trade Rep-
resentative, all functions of the Inspector Gen-
eral of the Department of Commerce and the
Office of the Inspector General of the Depart-
ment of Commerce relating to the functions
transferred to the United States Trade Rep-
resentative by section 17432 of the Department
of Commerce Dismantling Act; and’’; and
1505
(2) in section 11—
(A) in paragraph (1) by inserting ‘‘the
United States Trade Representative;’’ after
‘‘the Attorney General;’’; and
(B) in paragraph (2) by inserting ‘‘the
United States Trade Administration,’’ after
‘‘Treasury;’’.
(c) AMENDMENT TO THE TRADE ACT OF 1974.—(1)
Chapter 4 of title I of the Trade Act of 1974 is amended
to read as follows:
‘‘CHAPTER 4—REPRESENTATION IN
TRADE NEGOTIATIONS
‘‘SEC. 141. FUNCTIONS OF THE UNITED STATES TRADE REP-
RESENTATIVE.
‘‘The United States Trade Representative of the
United States Trade Administration established under
section 201 of the Trade Reorganization Act of 1995
shall—
‘‘(1) be the chief representative of the United
States for each trade negotiation under this chapter
or chapter 1 of title III of this Act, or subtitle A of
title I of the Omnibus Trade and Competitiveness
Act of 1988, or any other provision of law enacted
after the Department of Commerce Dismantling Act;
1506
‘‘(2) report directly to the President and the
Congress, and be responsible to the President and
the Congress for the administration of trade agree-
ments programs under this Act, the Omnibus Trade
and Competitiveness Act of 1988, the Trade Expan-
sion Act of 1962, section 350 of the Tariff Act of
1930, and any other provision of law enacted after
the Department of Commerce Dismantling Act;
‘‘(3) advise the President and the Congress
with respect to nontariff barriers to international
trade, international commodity agreements, and
other matters which are related to the trade agree-
ments programs; and
‘‘(4) be responsible for making reports to Con-
gress with respect to the matters set forth in para-
graphs (1) and (2).’’.
(2) The table of contents in the first section of the
Trade Act of 1974 is amended by striking the items relat-
ing to chapter 4 and section 141 and inserting the follow-
ing:
‘‘CHAPTER 4—REPRESENTATION IN TRADE NEGOTIATIONS
‘‘Sec. 141. Functions of the United States Trade Representative.’’.
(d) FOREIGN SERVICE PERSONNEL.—The Foreign
Service Act of 1980 is amended by striking paragraph (3)
of section 202(a) (22 U.S.C. 3922(a)) and inserting the
following:
1507
‘‘(3) The United States Trade Representative of the
United States Trade Administration may utilize the For-
eign Service personnel system in accordance with this
Act—
‘‘(A) with respect to the personnel performing
functions—
‘‘(i) which were transferred to the Depart-
ment of Commerce from the Department of
State by Reorganization Plan No. 3 of 1979;
and
‘‘(ii) which were subsequently transferred
to the United States Trade Representative by
section 17432 of the Department of Commerce
Dismantling Act; and
‘‘(B) with respect to other personnel of the
United States Trade Administration to the extent
the President determines to be necessary in order to
enable the United States Trade Administration to
carry out functions which require service abroad.’’.
(e) CHIEF FINANCIAL OFFICERS.—Section 901(b)(1)
of title 31, United States Code, is amended by adding at
the end the following:
‘‘(Q) The United States Trade Administra-
tion.’’.
1508
SEC. 17472. REPEALS.
Sections 1 and 2 of the Act of June 5, 1939 (15
U.S.C. 1502 and 1503; 53 Stat. 808), relating to the
Under Secretary of Commerce, are repealed.
SEC. 17473. CONFORMING AMENDMENTS RELATING TO EX-
ECUTIVE SCHEDULE POSITIONS.
(a) POSITIONS AT LEVEL I.—Section 5312 of title
5, United States Code, is amended by amending the item
relating to the United States Trade Representative to read
as follows:
‘‘United States Trade Representative, United
States Trade Administration.’’.
(b) POSITIONS AT LEVEL II.—Section 5313 of title
5, United States Code, is amended by adding at the end
the following:
‘‘Deputy Administrator of the United States
Trade Administration.
‘‘Deputy United States Trade Representatives,
United States Trade Administration (2).
‘‘Director General of Trade, United States
Trade Administration (2).’’.
(c) POSITIONS AT LEVEL III.—Section 5314 of title
5, United States Code, is amended by adding at the end
the following:
‘‘Assistant Administrators, United States Trade
Administration (3).’’.
1509
(d) POSITIONS AT LEVEL IV.—Section 5315 of title
5, United States Code, is amended—
(1) by striking the item relating to the Assist-
ant Secretary of Commerce and Director General of
the United States and Foreign Commercial Service;
and
(2) by adding at the end the following:
‘‘General Counsel, United States Trade Admin-
istration.
‘‘Inspector General, United States Trade Ad-
ministration.
‘‘Chief Financial Officer, United States Trade
Administration.’’.
CHAPTER 7—TRANSITIONAL, SAVINGS,
AND CONFORMING PROVISIONS
SEC. 17481. ADDITIONAL TRANSFERS.
Any function of the Secretary of Commerce or the
Department of Commerce which—
(1) is not transferred by this subtitle; and
(2) is incidental to, necessary for, or primarily
related to, the performance of a function transferred
by this subtitle,
is transferred to the head of the Federal agency to which
the related function is transferred by this subtitle.
1510
SEC. 17482. INCIDENTAL TRANSFERS.
After consultation with the Director of the Office of
Personnel Management, the Director of the Office of Man-
agement and Budget is authorized, at such times as the
Director of the Office of Management and Budget may
provide, to make such determinations as may be necessary
with regard to the transfer of positions within the Senior
Executive Service in connection with the functions and of-
fices transferred by this subtitle.
SEC. 17483. EFFECT ON PERSONNEL.
(a) IN GENERAL.—Except as otherwise provided by
this subtitle, the transfer pursuant to this subtitle of full-
time personnel (except special Government employees) and
part-time personnel holding permanent positions shall not
cause any such employee to be separated or reduced in
grade or compensation for one year after the date of trans-
fer of such employee under this subtitle.
(b) EXECUTIVE SCHEDULE POSITIONS.—Except as
otherwise provided by this subtitle, any person who, on
the day preceding the effective date of this subtitle, held
a position compensated in accordance with the Executive
Schedule prescribed in chapter 53 of title 5, United States
Code, and who, without a break in service, is appointed
in a Federal agency to which functions are transferred by
this subtitle to a position having duties comparable to the
duties performed immediately preceding such appointment
1511
shall continue to be compensated in such new position at
not less than the rate provided for such previous position,
for the duration of the service of such person in such new
position.
(c) TERMINATION OF CERTAIN POSITIONS.—Except
for members of the Foreign Service, positions whose in-
cumbents are appointed by the President, by and with the
advice and consent of the Senate, the functions of which
are transferred by this subtitle, shall terminate on the ef-
fective date of this subtitle.
SEC. 17484. SAVINGS PROVISIONS.
(a) ADMINISTRATIVE ACTIONS RELATING TO PRO-
MULGATION OF RULES.—Any administrative action relat-
ing to the preparation or promulgation of a regulation by
a Federal agency relating to a function transferred under
this subtitle may be continued by the Federal agency to
which such function is transferred with the same effect
as if this subtitle had not been enacted.
(b) FEDERAL OFFICIAL AS PARTY IN ACTION.—If,
before the date on which this subtitle takes effect, the Of-
fice of the United States Trade Representative, or any of-
ficer thereof in his or her official capacity, is a party to
an action with respect to a function transferred by this
subtitle to a Federal agency, then such action shall be con-
1512
tinued with the head of the agency substituted or added
as a party.
(c) JUDICIAL REVIEW.—Orders and actions of the
head of a Federal agency in the exercise of functions
transferred to the head of such agency by this subtitle
shall be subject to judicial review to the same extent and
in the same manner as if such orders and actions had been
by the Department of Commerce or the Office of the Unit-
ed States Trade Representative, or any office or officer
thereof, in the exercise of such functions immediately pre-
ceding their transfer. Any statutory requirements relating
to notice, hearings, action upon the record, or administra-
tive review that apply to any function transferred by this
subtitle shall apply to the exercise of such function by the
head of the Federal agency to which such function is
transferred by this subtitle.
SEC. 17485. REFERENCE.
With respect to any functions transferred by this sub-
title and exercised after the effective date of this subtitle,
reference in any other Federal law to—
(1) the Secretary of Commerce or the United
States Trade Representative; or
(2) the Department of Commerce or the Office
of the United States Trade Representative or any of-
ficer or office thereof,
1513
shall be considered to refer to the head of the Federal
agency to whom such functions were transferred by this
subtitle.
SEC. 17486. TRANSITION.
With the consent of the Secretary of Commerce or
the United States Trade Representative, as the case may
be, the head of each Federal agency to which functions
or offices are transferred by this subtitle is authorized to
utilize—
(1) the services of such officers, employees, and
other personnel of the Department of Commerce or
the Office of the United States Trade Representa-
tive, as the case may be, with respect to functions
or offices transferred to that agency by this subtitle;
and
(2) funds appropriated to such functions or of-
fices for such period of time as may reasonably be
needed to facilitate the orderly implementation of
this subtitle.
CHAPTER 8—MISCELLANEOUS
SEC. 17491. EFFECTIVE DATE.
(a) IN GENERAL.—This subtitle shall take effect on
the effective date specified in section 17109(a), except that
at any time after the date of the enactment of this Act
1514
the officers provided for in chapter 2 may be nominated
and appointed, as provided in such chapter.
(b) INTERIM
COMPENSATION
AND
EXPENSES.—
Funds available to the Department of Commerce or the
Office of the United States Trade Representative (or any
official or component thereof), with respect to the func-
tions transferred by this subtitle, may be used, with ap-
proval of the Director of the Office of Management and
Budget, to pay the compensation and expenses of an offi-
cer appointed under subsection (a) who will carry out such
functions until funds for that purpose are otherwise avail-
able.
SEC. 17492. INTERIM APPOINTMENTS.
(a) IN GENERAL.—If one or more officers required
by this subtitle to be appointed by and with the advice
and consent of the Senate have not entered upon office
on the effective date of this subtitle and notwithstanding
any other provision of law, the President may designate
any officer who was appointed by and with the advice and
consent of the Senate, and who was such an officer on
the day before the effective date of this subtitle, to act
in the office until it is filled as provided by this subtitle.
(b) COMPENSATION.—Any officer acting in an office
pursuant to subsection (a) shall receive compensation at
the rate prescribed by this subtitle for such office.
1515
SEC. 17493. FUNDING REDUCTIONS RESULTING FROM RE-
ORGANIZATION.
(a) FUNDING REDUCTIONS.—Notwithstanding sec-
tion 17610, beginning in the first fiscal year that begins
on or after the effective date of this subtitle, the amount
expended by the United States in performing all functions
which, immediately before the effective date of this sub-
title, were performed by the Department of Commerce or
any agency, officer, or employee thereof and are trans-
ferred by this subtitle may not exceed 75 percent of the
total amount expended by the United States in performing
all such functions during fiscal year 1994.
(b) IMPLEMENTATION PLAN.—(1) Not later than 90
days after the date of the enactment of this Act, the Direc-
tor of the Office of Management and Budget shall submit
a report to the Congress on a plan that—
(A) provides for the implementation of the
funding reductions required under subsection (a);
and
(B) makes legislative recommendations for ad-
ditional authority necessary or useful in implement-
ing such funding reductions.
(2) In preparing the report, the Office of Manage-
ment and Budget shall consult with the USTR.
1516
SEC. 17494. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums
as may be necessary to carry out the provisions of this
subtitle. Amounts appropriated under this section shall be
available until expended.
Subtitle E—Patent and Trademark
Office Corporation
SEC. 17501. SHORT TITLE.
This subtitle may be cited as the ‘‘Patent and Trade-
mark Office Corporation Act of 1995’’.
CHAPTER 1—PATENT AND TRADEMARK
OFFICE
SEC. 17511. ESTABLISHMENT OF PATENT AND TRADEMARK
OFFICE AS A CORPORATION.
Section 1 of title 35, United States Code, is amended
to read as follows:
‘‘§ 1. Establishment
‘‘(a) ESTABLISHMENT.—The Patent and Trademark
Office is established as a wholly owned Government cor-
poration subject to chapter 91 of title 31, except as other-
wise provided in this title.
‘‘(b) OFFICES.—The Patent and Trademark Office
shall maintain an office in the District of Columbia, or
the metropolitan area thereof, for the service of process
and papers and shall be deemed, for purposes of venue
in civil actions, to be a resident of the District of Colum-
1517
bia. The Patent and Trademark Office may establish of-
fices in such other places as it considers necessary or ap-
propriate in the conduct of its business.
‘‘(c) REFERENCE.—For purposes of this title, the
Patent and Trademark Office shall also be referred to as
the ‘Office’.’’.
SEC. 17512. POWERS AND DUTIES.
Section 2 of title 35, United States Code, is amended
to read as follows:
‘‘§ 2. Powers and Duties
‘‘(a) IN GENERAL.—The Patent and Trademark Of-
fice shall be responsible for—
‘‘(1) the granting and issuing of patents and
the registration of trademarks;
‘‘(2) conducting studies, programs, or ex-
changes of items or services regarding domestic and
international patent and trademark law or the ad-
ministration of the Office, including programs to
recognize, identify, assess, and forecast the tech-
nology of patented inventions and their utility to in-
dustry;
‘‘(3) authorizing or conducting studies and pro-
grams cooperatively with foreign patent and trade-
mark offices and international organizations, in con-
1518
nection with the granting and issuing of patents and
the registration of trademarks; and
‘‘(4) disseminating to the public information
with respect to patents and trademarks.
‘‘(b) SPECIFIC POWERS.—The Office—
‘‘(1) shall have perpetual succession;
‘‘(2) shall adopt and use a corporate seal, which
shall be judicially noticed and with which letters pat-
ent, certificates of trademark registrations, and pa-
pers issued by the Office shall be authenticated;
‘‘(3) may sue and be sued in its corporate name
and be represented by its own attorneys in all judi-
cial and administrative proceedings;
‘‘(4) may indemnify the Commissioner of Pat-
ents and Trademarks, and other officers, attorneys,
agents, and employees (including members of the
Management Advisory Board established in section
5), of the Office for liabilities and expenses incurred
within the scope of their employment;
‘‘(5) may adopt, amend, and repeal bylaws,
rules, and regulations, governing the manner in
which its business will be conducted and the powers
granted to it by law will be exercised, without regard
to chapter 35 of title 44;
1519
‘‘(6) may acquire, construct, purchase, lease,
hold, manage, operate, improve, alter, and renovate
any real, personal, or mixed property, or any interest
therein, as it considers necessary to carry out its
functions, without regard to the provisions of the
Federal Property and Administrative Services Act of
1949;
‘‘(7)(A) may make such purchases, contracts
for the construction, maintenance, or management
and operation of facilities, and contracts for supplies
or services, after advertising, in such manner and at
such times sufficiently in advance of opening bids, as
the Office determines is adequate to ensure notice
and an opportunity for competition, except that ad-
vertising shall not be required when the Office deter-
mines that the making of any such purchase or con-
tract without advertising is necessary, or that adver-
tising is not reasonably practicable;
‘‘(B) may enter into and perform such pur-
chases and contracts for printing services, including
the process of composition, platemaking, presswork,
silk screen processes, binding, microform, and the
products of such processes, as it considers necessary
to carry out the functions of the Office, without re-
1520
gard to sections 501 through 517 and 1101 through
1123 of title 44; and
‘‘(C) may enter into and perform such other
contracts, leases, cooperative agreements, or other
transactions with international, foreign, and domes-
tic public agencies and private organizations, and
persons as is necessary in the conduct of its business
and on such terms as it considers appropriate;
‘‘(8) may use, with their consent, services,
equipment, personnel, and facilities of other depart-
ments, agencies, and instrumentalities of the Fed-
eral Government, on a reimbursable basis, and to co-
operate with such other departments, agencies, and
instrumentalities in the establishment and use of
services, equipment, and facilities of the Office;
‘‘(9) may obtain from the Administrator of
General Services such services as the Administrator
is authorized to provide to other agencies of the
United States, on the same basis as those services
are provided to other agencies of the United States;
‘‘(10) may use, with the consent of the agency,
government, or international organization concerned,
the services, records, facilities, or personnel of any
State or local government agency or instrumentality
1521
or foreign government or international organization
to perform functions on its behalf;
‘‘(11) may determine the character of and the
necessity for its obligations and expenditures and
the manner in which they shall be incurred, allowed,
and paid, subject to the provisions of this title and
the Act of July 5, 1946 (commonly referred to as
the ‘Trademark Act of 1946’);
‘‘(12) may retain and use all of its revenues
and receipts, including revenues from the sale, lease,
or disposal of any real, personal, or mixed property,
or any interest therein, of the Office, in carrying out
the functions of the Office, including for research
and development and capital investment, without ap-
portionment under the provisions of subchapter II
of chapter 15 of title 31;
‘‘(13) shall have the priority of the United
States with respect to the payment of debts from
bankrupt, insolvent, and decedents’ estates;
‘‘(14) may accept monetary gifts or donations
of services, or of real, personal, or mixed property,
in order to carry out the functions of the Office;
‘‘(15) may execute, in accordance with its by-
laws, rules, and regulations, all instruments nec-
1522
essary and appropriate in the exercise of any of its
powers;
‘‘(16) may provide for liability insurance and
insurance against any loss in connection with its
property, other assets, or operations either by con-
tract or by self-insurance; and
‘‘(17) shall pay any settlement or judgment en-
tered against it from the funds of the Office and not
from amounts available under section 1304 of title
31.’’.
SEC. 17513. ORGANIZATION AND MANAGEMENT.
Section 3 of title 35, United States Code, is amended
to read as follows:
‘‘§ 3. Officers and employees
‘‘(a) COMMISSIONER.—
‘‘(1) IN
GENERAL.—The management of the
Patent and Trademark Office shall be vested in the
Commissioner of Patents and Trademarks (hereafter
in this title referred to as the ‘Commissioner’), who
shall be a citizen of the United States and who shall
be appointed by the President, by and with the ad-
vice and consent of the Senate. The Commissioner
shall be a person who, by reason of professional
background and experience in patent and trademark
law, is especially qualified to manage the Office.
1523
‘‘(2) DUTIES.—
‘‘(A) IN
GENERAL.—The Commissioner
shall be responsible for the management and di-
rection of the Office, including the issuance of
patents and the registration of trademarks.
‘‘(B) ADVISING
THE
PRESIDENT.—The
Commissioner shall advise the President of all
activities of the Patent and Trademark Office
undertaken in response to obligations of the
United States under treaties and executive
agreements, or which relate to cooperative pro-
grams with those authorities of foreign govern-
ments that are responsible for granting patents
or registering trademarks. The Commissioner
shall also recommend to the President changes
in law or policy which may improve the ability
of U.S. citizens to secure and enforce patent
rights or trademark rights in the United States
or in foreign countries.
‘‘(C) CONSULTING
WITH
THE
MANAGE-
MENT
ADVISORY
BOARD.—The Commissioner
shall consult with the Management Advisory
Board established in section 5 on a regular
basis on matters relating to the operation of the
Patent and Trademark Office, and shall consult
1524
with the Board before submitting budgetary
proposals to the Office of Management and
Budget or changing or proposing to change pat-
ent or trademark user fees or patent or trade-
mark regulations.
‘‘(3) TERM.—The Commissioner shall serve a
term of six years, and may continue to serve until
a successor is appointed and assumes office. The
Commissioner may be reappointed to subsequent
terms.
‘‘(4) OATH.—The Commissioner shall, before
taking office, take an oath to discharge faithfully the
duties of the Office.
‘‘(5) COMPENSATION.—The Commissioner shall
receive compensation at the rate of pay in effect for
level II of the Executive Schedule under section
5313 of title 5.
‘‘(6) REMOVAL.—The Commissioner may be re-
moved from office by the President only for cause.
‘‘(7) DESIGNEE OF COMMISSIONER.—The Com-
missioner shall designate an officer of the Office who
shall be vested with the authority to act in the ca-
pacity of the Commissioner in the event of the ab-
sence or incapacity of the Commissioner.
‘‘(b) OFFICERS AND EMPLOYEES OF THE OFFICE.—
1525
‘‘(1) DEPUTY COMMISSIONERS.—The Commis-
sioner shall appoint a Deputy Commissioner for Pat-
ents and a Deputy Commissioner for Trademarks
for terms that shall expire on the date on which the
Commissioner’s term expires. The Deputy Commis-
sioner for Patents shall be a person with dem-
onstrated experience in patent law and the Deputy
Commissioner for Trademarks shall be a person with
demonstrated experience in trademark law. The
Deputy Commissioner for Patents and the Deputy
Commissioner for Trademarks shall be the principal
policy advisors to the Commissioner on all aspects of
the activities of the Office that affect the adminis-
tration of patent and trademark operations, respec-
tively.
‘‘(2) OTHER OFFICERS AND EMPLOYEES.—The
Commissioner shall—
‘‘(A) appoint an Inspector General and
such other officers, employees (including attor-
neys), and agents of the Office as the Commis-
sioner considers necessary to carry out its func-
tions;
‘‘(B) fix the compensation of such officers
and employees, subject to the limits set forth in
subsection (c); and
1526
‘‘(C) define the authority and duties of
such officers and employees and delegate to
them such of the powers vested in the Office as
the Commissioner may determine.
The Office shall not be subject to any administratively or
statutorily imposed limitation on positions or personnel,
and no positions or personnel of the Office shall be taken
into account for purposes of applying any such limitation,
except to the extent otherwise specifically provided by stat-
ute with respect to the Office.
‘‘(c) LIMITS ON COMPENSATION.—Except as other-
wise provided in this title or any other provision of law,
the basic pay of an officer or employee of the Office for
any calendar year may not exceed the annual rate of basic
pay in effect for level III of the Executive Schedule under
section 5314 of title 5. The Commissioner shall by regula-
tion establish a limitation on the total compensation pay-
able to officers or employees of the Office, consistent with
the limitation under section 5307 of title 5.
‘‘(d) INAPPLICABILITY OF TITLE 5 GENERALLY.—
Except as otherwise provided in this section, officers and
employees of the Office shall not be subject to the provi-
sions of title 5 relating to Federal employees.
‘‘(e) CARRYOVER OF PERSONNEL.—
1527
‘‘(1) TO THE OFFICE.—Effective as of the ef-
fective date of the Patent and Trademark Office
Corporation Act of 1995, all officers and employees
of the Patent and Trademark Office on the day be-
fore such effective date shall become officers and
employees of the Office, without a break in service.
‘‘(2) CONTINUATION
IN
OFFICE
OF
CERTAIN
OFFICERS.—
‘‘(A) COMMISSIONER
OF
PATENTS
AND
TRADEMARKS.—The individual serving as the
Commissioner of Patents and Trademarks on
the day before the effective date of the Patent
and Trademark Office Corporation Act of 1995
may serve as the Commissioner for a period of
1 year beginning on such effective date or, if
earlier, until a Commissioner has been ap-
pointed under subsection (a).
‘‘(B) ASSISTANT COMMISSIONER FOR PAT-
ENTS.—The individual serving as the Assistant
Commissioner for Patents on the day before the
effective date of the Patent and Trademark Of-
fice Corporation Act of 1995 may serve as the
Deputy Commissioner for Patents for a period
of 1 year beginning on such effective date or,
1528
if earlier, until a Deputy Commissioner for Pat-
ents has been appointed under subsection (b).
‘‘(C) 
ASSISTANT
COMMISSIONER
FOR
TRADEMARKS.—The individual serving as the
Assistant Commissioner for Trademarks on the
day before the effective date of the Patent and
Trademark Office Corporation Act of 1995 may
serve as the Deputy Commissioner for Trade-
marks for a period of 1 year beginning on such
effective date or, if earlier, until a Deputy Com-
missioner for Trademarks has been appointed
under subsection (b).
‘‘(f) EMPLOYEE PROTECTION.—Not later than the
effective date of the Patent and Trademark Office Cor-
poration Act of 1995, the Commissioner shall, notwith-
standing section 3531 of such Act, take appropriate meas-
ures to protect the employment interests of individuals
who become employees of the Office pursuant to sub-
section (e)(1). Such measures shall include provisions to
ensure that—
‘‘(1) the Office will adopt labor agreements in
accordance with subsection (g);
‘‘(2) no such individual shall, during the 2-year
period commencing on the effective date of the Pat-
ent and Trademark Office Corporation Act of 1995,
1529
be subject to separation or any reduction in com-
pensation by reason of the establishment of the Of-
fice as a Government corporation pursuant to such
Act;
‘‘(3) all sick leave, annual leave, and compen-
satory time accrued or accumulated under title 5 be-
fore the start of such 2-year period shall be obliga-
tions of the Office during such period; and
‘‘(4) there shall be made available to such em-
ployees not less than 1 life insurance program and
not less than 3 health insurance programs, during
such 2-year period, which shall be reasonably com-
parable, in terms of employee premium cost and cov-
erage, to the Federal health and life insurance pro-
grams available to such employees on the day before
the start of such period.
‘‘(g) LABOR AGREEMENTS.—
‘‘(1) ADOPTION OF EXISTING AGREEMENTS.—
The Office shall adopt all labor agreements which
are in effect, as of the day before the effective date
of the Patent and Trademark Office Corporation Act
of 1995, with respect to such Office (as then in ef-
fect). Each such agreement shall remain in effect for
the 2-year period commencing on such date, unless
1530
the agreement provides for a shorter duration or the
parties agree otherwise before such period ends.
‘‘(2) CONTINUED APPLICABILITY OF CHAPTER 71.—
Chapter 71 of title 5 shall continue to apply with respect
to the Office after the Patent and Trademark Office Cor-
poration Act of 1995 takes effect.
‘‘(h) TERMINATION RIGHTS.—Any employee referred
to in the first sentence of subsection (f) whose employment
with the Office is terminated during the 2-year period
commencing on the effective date of the Patent and Trade-
mark Office Corporation Act of 1995 shall be entitled to
rights and benefits, to be afforded by the Office, similar
to those such employee would have had under Federal law
if termination had occurred immediately before such date.
‘‘(i) RETIREMENT.—
‘‘(1) CONTINUED
COVERAGE.—Any employee
referred to in the first sentence of subsection (f)
who, on the day before the effective date of the Pat-
ent and Trademark Office Corporation Act of 1995,
is subject to subchapter III of chapter 83 of title 5
or chapter 84 of such title shall, so long as such em-
ployee remains employed by the Office without a
break in service, remain subject to such subchapter
or chapter, as the case may be. Any employment
that satisfies the preceding sentence shall be consid-
1531
ered employment by the Government of the United
States for purposes of such subchapter or chapter.
During any such employment, the Office shall be
considered to be the employing agency of the em-
ployee and shall make all agency contributions re-
quired under such subchapter or chapter with re-
spect to such employee.
‘‘(2) DEPOSIT REQUIREMENT.—Not later than
1 year after the effective date of the Patent and
Trademark Office Corporation Act of 1995, the Of-
fice shall pay into the Treasury of the United
States, to the credit of the Civil Service Retirement
and Disability Fund, an amount determined by the
Office of Personnel Management to represent the
present value of the difference between (A) the fu-
ture cost of benefits payable from the Fund and due
the employees referred to in the first sentence of
subsection (f) that are attributable to employment
on or after the effective date of the Patent and
Trademark Office Corporation Act of 1995, and (B)
the contributions made by such employees and the
Office under paragraph (1). In determining the
amount due, the Office of Personnel Management
shall take into consideration the actual interest such
1532
amount can be expected to earn when invested in the
Treasury.
‘‘(j) COMPETITIVE STATUS.—For purposes of ap-
pointment to a position in the competitive service for
which an officer or employee of the Office is qualified,
such officer or employee—
‘‘(1) shall not forfeit any competitive status, ac-
quired by such officer or employee before the effec-
tive date of the Patent and Trademark Office Cor-
poration Act of 1995, by reason of becoming an offi-
cer or employee of the Office pursuant to subsection
(e)(1); or
‘‘(2) if not covered by paragraph (1), shall ac-
quire competitive status after completing at least 1
year of continuous service under a nontemporary ap-
pointment to a position within the Office (taking
into account any such service performed with the
former Patent and Trademark Office immediately
before such effective date).
‘‘(k) SAVINGS PROVISIONS.—All orders, determina-
tions, rules, and regulations regarding compensation and
benefits and other terms and conditions of employment,
in effect for the Office and its officers and employees im-
mediately before the effective date of the Patent and
Trademark Office Corporation Act of 1995, shall continue
1533
in effect with respect to the Office and its officers and
employees until modified, superseded, or set aside by the
Office or a court of appropriate jurisdiction or by oper-
ation of law.’’.
SEC. 17514. MANAGEMENT ADVISORY BOARD.
Chapter 1 of part I of title 35, United States Code,
is amended by inserting after section 4 the following:
‘‘§ 5. Patent and Trademark Office Management Advi-
sory Board
‘‘(a) COMPENSATION.—
‘‘(1) APPOINTMENT.—The Patent and Trade-
mark Office shall have a Management Advisory
Board (hereafter in this title referred to as the
‘Board’) of 18 members, 6 of whom shall be ap-
pointed by the President, 6 of whom shall be ap-
pointed by the Speaker of the House of Representa-
tives, and 6 of whom shall be appointed by the
President pro tempore of the Senate. Not more than
4 of the 6 members appointed by each appointing
authority shall be members of the same political
party.
‘‘(2) TERMS.—Members of the Board shall be
appointed for a term of 6 years each, except that of
the members first appointed by each appointing au-
thority, 1 shall be for a term of 1 year, 1 shall be
1534
for a term of 2 years, 1 shall be for a term of 3
years, 1 shall be for a term of 4 years, and 1 shall
be for a term of 5 years. No member may serve
more than 1 term.
‘‘(3) CHAIR.—The President shall designate the
chair of the Board, whose term as chair shall be for
3 years.
‘‘(4) TIMING
OF
APPOINTMENTS.—Initial ap-
pointments to the Board shall be made within 3
months after the effective date of the Patent and
Trademark Office Corporation Act of 1995, and va-
cancies shall be filled within 3 months after they
occur.
‘‘(5) VACANCIES.—Vacancies shall be filled in
the manner in which the original appointment was
made under this subsection. Members appointed to
fill a vacancy occurring before the expiration of the
term for which the member’s predecessor was ap-
pointed shall be appointed only for the remainder of
that term. A member may serve after the expiration
of that member’s term until a successor is ap-
pointed.
‘‘(b) BASIS FOR APPOINTMENTS.—Members of the
Board shall be citizens of the United States who shall be
chosen so as to represent the interests of diverse users
1535
of the Patent and Trademark Office, and shall include in-
dividuals with substantial background and achievement in
corporate finance and management.
‘‘(c) APPLICABILITY OF CERTAIN ETHICS LAWS.—
Members of the Board shall be special Government em-
ployees within the meaning of section 202 of title 18.
‘‘(d) MEETINGS.—The Board shall meet at the call
of the chair to consider an agenda set by the chair.
‘‘(e) DUTIES.—The Board shall—
‘‘(1) review the policies, goals, performance,
budget, and user fees of the Patent and Trademark
Office, and advise the Commissioner on these mat-
ters; and
‘‘(2) within 60 days after the end of each fiscal
year, prepare an annual report on the matters re-
ferred to in paragraph (1), transmit the report to
the President and the Committees on the Judiciary
of the Senate and the House of Representatives, and
publish the report in the Patent and Trademark Of-
fice Official Gazette.
‘‘(f) STAFF.—The Board shall employ a staff and
procure support services for the staff adequate to enable
the Board to carry out its functions, using funds available
to the Commissioner under section 42 of this title. Persons
employed by the Board shall receive compensation as de-
1536
termined by the Board, serve in accordance with terms
and conditions of employment established by the Board,
and be subject solely to the direction of the Board, not-
withstanding any other provision of law.
‘‘(g) COMPENSATION.—Members of the Board may
accept reimbursement for expenses incurred in attending
meetings of the Board and compensation not to exceed
$1000 per day for each day in attendance at meetings of
the Board.
‘‘(h) ACCESS
TO INFORMATION.—Members of the
Board shall be provided access to records and information
in the Patent and Trademark Office, except for personnel
or other privileged information and information concern-
ing patent applications required to be kept in confidence
by section 122 of this title.
‘‘(i) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—The provisions of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to meet-
ings of the Board, but all meetings of the Board shall be
announced in the Federal Register at least 30 days in ad-
vance and all meetings shall be open to the public unless
closed by the Board for good cause.’’.
1537
SEC. 17515. INDEPENDENCE FROM DEPARTMENT OF COM-
MERCE.
Section 6 of title 35, United States Code, is amend-
ed—
(1) by striking ‘‘, under the direction of the
Secretary of Commerce,’’ each place it appears; and
(2) by striking ‘‘, subject to the approval of the
Secretary of Commerce,’’.
SEC. 17516. TRADEMARK TRIAL AND APPEAL BOARD.
Section 17 of the Act of July 5, 1946 (commonly re-
ferred to as the ‘‘Trademark Act of 1946’’) (15 U.S.C.
1067) is amended to read as follows:
‘‘SEC. 17. (a) In every case of interference, opposition
to registration, application to register as a lawful concur-
rent user, or application to cancel the registration of a
mark, the Commissioner shall give notice to all parties and
shall direct a Trademark Trial and Appeal Board to deter-
mine and decide the respective rights of registration.
‘‘(b) The Trademark Trial and Appeal Board shall
include the Commissioner, the Deputy Commissioner for
Patents, the Deputy Commissioner for Trademarks, and
members competent in trademark law who are appointed
by the Commissioner.’’.
1538
SEC. 17517. BOARD OF PATENT APPEALS AND INTER-
FERENCES.
Section 7 of title 35, United States Code, is amended
to read as follows:
‘‘§ 7. Board of Patent Appeals and Interferences
‘‘(a) ESTABLISHMENT
AND COMPOSITION.—There
shall be in the Patent and Trademark Corporation a
Board of Patent Appeals and Interferences. The Commis-
sioner, the Deputy Commissioner for Patents, the Deputy
Commissioner for Trademarks, the officer principally re-
sponsible for the examination of patents, the officer prin-
cipally responsible for the examination of trademarks, and
the examiners-in-chief shall constitute the Board. The ex-
aminers-in-chief shall be persons of competent legal knowl-
edge and scientific ability.
‘‘(b) DUTIES.—The Board of Patent Appeals and
Interferences shall, on written appeal of an applicant, re-
view adverse decisions of examiners upon applications for
patents and shall determine priority and patentability of
invention in interferences declared under section 135(a)
of this title. Each appeal and interference shall be heard
by at least 3 members of the Board, who shall be des-
ignated by the Commissioner. Only the Board of Patent
Appeals and Interferences may grant rehearings.’’.
1539
SEC. 17518. SUITS BY AND AGAINST THE CORPORATION.
Chapter 1 of part I of title 35, United States Code,
is amended—
(1) by redesignating sections 8 through 14 as
sections 9 through 15; and
(2) by inserting after section 7 the following
new section:
‘‘§ 8. Suits by and against the Corporation
‘‘(a) IN GENERAL.—
‘‘(1) ACTIONS UNDER UNITED STATES LAW.—
Any civil action, suit, or proceeding to which the
Patent and Trademark Office is a party is deemed
to arise under the laws of the United States. Exclu-
sive jurisdiction over all civil actions by or against
the Office is in the Federal courts as provided by
law.
‘‘(2) CONTRACT CLAIMS.—Any action, suit, or
proceeding against the Office founded upon contract
shall be subject to the limitations and exclusive rem-
edy provided in section 1346(a)(2) and sections
1491 through 1509 of title 28, whether or not such
contract claims are cognizable under the sections
507, 1346, 1402, 1491, 1496, 1497, 1501, 1503,
2071, 2072, 2411, 2501, 2512 of title 28). For pur-
poses of the Contract Disputes Act of 1978 (41
U.S.C. 601 and following), the Commissioner shall
1540
be deemed to be the agency head with respect to
contract claims arising with respect to the Office.
‘‘(3) TORT CLAIMS.—Any action, suit, or pro-
ceeding against the Office founded upon tort shall be
subject to the limitations and exclusive remedies pro-
vided in section 1346(b) and sections 2671 through
2680 of title 28, whether or not such tort claims are
cognizable under section 1346(b) of title 28.
‘‘(4) PROHIBITION
ON
ATTACHMENT, LIENS,
ETC.—No attachment, garnishment, lien, or similar
process, intermediate or final, in law or equity, may
be issued against property of the Office.
‘‘(5) SUBSTITUTION
OF
OFFICE
AS
PARTY.—
The Office shall be substituted as defendant in any
civil action, suit, or proceeding against an officer or
employee of the Office, if the Office determines that
the employee was acting within the scope of the offi-
cer or employee’s employment with the Office. If the
Office refuses to certify scope of employment, the of-
ficer or employee may at any time before trial peti-
tion the court to find and certify that the officer or
employee was acting within the scope of the officer
or employee’s employment. Upon certification by the
court, the Office shall be substituted as the party
1541
defendant. A copy of the petition shall be served
upon the Office.
‘‘(b) RELATIONSHIP WITH JUSTICE DEPARTMENT.—
‘‘(1) EXERCISE BY OFFICE OF ATTORNEY GEN-
ERAL’S AUTHORITIES.—Except as provided in this
section, in relation to all judicial proceedings in
which the Office or an officer or employee thereof is
a party or in which the officer or employee thereof
is interested and which arise from or relate to offi-
cers or employees thereof acting within the scope of
their employment, torts, contracts, property, reg-
istration of patent and trademark practitioners, pat-
ents or trademarks, or fees, the officer or employee
thereof may exercise, without prior authorization
from the Attorney General, the authorities and du-
ties that otherwise would be exercised by the Attor-
ney General on behalf of the officer or employee
thereof under title 28, and other laws. In all other
judicial or administrative proceedings in which the
Office or an officer or employee of the Office is a
party or is interested, the Office may exercise these
authorities and duties only after obtaining author-
ization from the Attorney General.
‘‘(2) APPEARANCES BY ATTORNEY GENERAL.—
The Attorney General may file an appearance on be-
1542
half of the Office or an employee of the Office, with-
out the consent of the Office, in any suit in which
the Office is a party and represent the Office with
exclusive authority in the conduct, settlement, or
compromise of that suit.
‘‘(3) CONSULTATIONS
WITH
AND
ASSISTANCE
BY ATTORNEY GENERAL.—The Office may consult
with the Attorney General concerning any legal mat-
ter, and the Attorney General shall provide advice
and assistance to the Office, including representing
the Office in litigation, if requested by the Office.
‘‘(4) 
REPRESENTATION
BEFORE
SUPREME
COURT.—The Attorney General shall represent the
Office in all cases before the United States Supreme
Court.
‘‘(5) QUALIFICATIONS OF ATTORNEYS.—An at-
torney admitted to practice to the bar of the highest
court of at least one State in the United States or
the District of Columbia and appointed by the Office
may represent the Office in any legal proceeding in
which the Office or an officer or employee of the Of-
fice is a party or interested, regardless of whether
the attorney is a resident of the jurisdiction in which
the proceeding is held and notwithstanding any
1543
other prerequisites of qualification or appearance re-
quired by the court or administrative body.’’.
SEC. 17519. ANNUAL REPORT OF COMMISSIONER.
Section 15 of title 35, United States Code, as redesig-
nated by section 17518 of this Act, is amended to read
as follows:
‘‘§ 15. Annual report to Congress
‘‘The Commissioner shall report to the Congress, not
later than 90 days after the end of each fiscal year, the
moneys received and expended by the Office, the purposes
for which the moneys were spent, the quality and quantity
of the work of the Office, and other information relating
to the Office.’’.
SEC. 17520. SUSPENSION OR EXCLUSION FROM PRACTICE.
Section 32 of title 35, United States Code, is amend-
ed by inserting before the last sentence the following: ‘‘The
Commissioner shall have the discretion to designate any
officer or employee of the Patent and Trademark Office
to conduct the hearing required by this section.’’.
SEC. 17521. FUNDING.
Section 42 of title 35, United States Code, is amend-
ed to read as follows:
1544
‘‘§ 42. Patent and Trademark Office funding
‘‘(a) FEES PAYABLE TO THE OFFICE.—All fees for
services performed by or materials furnished by the Patent
and Trademark Office shall be payable to the Office.
‘‘(b) USE OF MONEYS.—Moneys of the Patent and
Trademark Office not otherwise used to carry out the
functions of the Office shall be kept in cash on hand or
on deposit, or invested in obligations of the United States
or guaranteed by the United States, or in obligations or
other instruments which are lawful investments for fidu-
ciary, trust, or public funds. Fees available to the Commis-
sioner under this title shall be used exclusively for the
processing of patent applications and for other services
and materials relating to patents. Fees available to the
Commissioner under section 31 of the Act of July 5, 1946
(commonly referred to as the ‘Trademark Act of 1946’)
(15 U.S.C. 1113) shall be used exclusively for the process-
ing of trademark registrations and for other services and
materials relating to trademarks.
‘‘(c) BORROWING
AUTHORITY.—The Patent and
Trademark Office is authorized to issue from time to time
for purchase by the Secretary of the Treasury its deben-
tures, bonds, notes, and other evidences of indebtedness
(hereafter in this subsection referred to as ‘obligations’)
in an amount not exceeding $2,000,000 outstanding at
any one time, to assist in financing its activities. Such ob-
1545
ligations shall be redeemable at the option of the Office
before maturity in the manner stipulated in such obliga-
tions and shall have such maturity as is determined by
the Office with the approval of the Secretary of the Treas-
ury. Each such obligation issued to the Treasury shall
bear interest at a rate not less than the current yield on
outstanding marketable obligations of the United States
of comparable maturity during the month preceding the
issuance of the obligation as determined by the Secretary
of the Treasury. The Secretary of the Treasury shall pur-
chase any obligations of the Office issued under this sub-
section and for such purpose the Secretary of the Treasury
is authorized to use as a public-debt transaction the pro-
ceeds of any securities issued under chapter 31 of title
31, and the purposes for which securities may be issued
under that chapter are extended to include such purpose.
Payment under this subsection of the purchase price of
such obligations of the Patent and Trademark Office shall
be treated as public debt transactions of the United
States.’’.
SEC. 17522. AUDITS.
Chapter 4 of part I title 35, United States Code, is
amended by adding at the end the following new section:
1546
‘‘§ 43. Audits
‘‘(a) IN GENERAL.—Financial statements of the Pat-
ent and Trademark Office shall be prepared on an annual
basis in accordance with generally accepted accounting
principles. Such statements shall be audited by an inde-
pendent certified public accountant chosen by the Sec-
retary. The audit shall be conducted in accordance with
standards that are consistent with generally accepted Gov-
ernment auditing standards and other standards estab-
lished by the Comptroller General, and with the generally
accepted auditing standards of the private sector, to the
extent feasible.
‘‘(b) REVIEW
BY COMPTROLLER GENERAL.—The
Comptroller General may review any audit of the financial
statement of the Patent and Trademark Office that is con-
ducted under subsection (a). The Comptroller General
shall report to the Congress and the Office the results of
any such review and shall include in such report appro-
priate recommendations.
‘‘(c) AUDIT
BY
COMPTROLLER
GENERAL.—The
Comptroller General may audit the financial statements
of the Office and such audit shall be in lieu of the audit
required by subsection (a). The Office shall reimburse the
Comptroller General for the cost of any audit conducted
under this subsection.
1547
‘‘(d) ACCESS TO OFFICE RECORDS.—All books, fi-
nancial records, report files, memoranda, and other prop-
erty that the Comptroller General deems necessary for the
performance of any audit shall be made available to the
Comptroller General.
‘‘(e) APPLICABILITY IN LIEU OF TITLE 31 PROVI-
SIONS.—This section applies to the Office in lieu of the
provisions of section 9105 of title 31.’’.
SEC. 17523. TRANSFER.
(a) TRANSFER OF FUNCTIONS.—Except as otherwise
provided in this subtitle, there are transferred to, and
vested in, the Patent and Trademark Office all functions,
powers, and duties vested by law in the Secretary of Com-
merce or the Department of Commerce or in the officers
or components in the Department of Commerce with re-
spect to the authority to grant patents and register trade-
marks, and in the Patent and Trademark Office, as in
effect on the day before the effective date of this subtitle,
and in the officers and components of such Office.
(b) TRANSFER
OF FUNDS
AND PROPERTY.—The
Secretary of Commerce shall transfer to the Patent and
Trademark Office, on the effective date of this subtitle,
so much of the assets, liabilities, contracts, property,
records, and unexpended and unobligated balances of ap-
propriations, authorizations, allocations, and other funds
1548
employed, held, used, arising from, available to, or to be
made available to the Department of Commerce, including
funds set aside for accounts receivable which are related
to functions, powers, and duties which are vested in the
Patent and Trademark Office by this subtitle.
(c) TRANSFER OF SURCHARGE FUND.—On the effec-
tive date of this subtitle, there are transferred to the Pat-
ent and Trademark Office those residual and unappropri-
ated balances remaining as of the effective date within the
Patent and Trademark Office Surcharge Fund established
by section 10101(b) of the Omnibus Budget Reconciliation
Act of 1990 (35 U.S.C. 41 note).
CHAPTER 2—EFFECTIVE DATE;
TECHNICAL AMENDMENTS
SEC. 17531. EFFECTIVE DATE.
This subtitle shall take effect on the date that is 6
months after the date of the enactment of this Act.
SEC. 17532. TECHNICAL AND CONFORMING AMENDMENTS.
(a) AMENDMENTS TO TITLE 35.—
(1) The table of contents for part I of title 35,
United States Code, is amended by amending the
item relating to chapter 1 to read as follows:
‘‘1. Establishment, Officers and Employees, Functions ...........................
1’’.
1549
(2) The table of sections for chapter 1 of title
35, United States Code, is amended to read as fol-
lows:
‘‘CHAPTER 1—ESTABLISHMENT, OFFICERS
AND EMPLOYEES, FUNCTIONS
‘‘Sec.
‘‘1. Establishment.
‘‘2. Powers and duties.
‘‘3. Officers and employees.
‘‘4. Restrictions on officers and employees as to interest in patents.
‘‘5. Patent and Trademark Office Management Advisory Board.
‘‘6. Duties of Commissioner.
‘‘7. Board of Patent Appeals and Interferences.
‘‘8. Suits by and against the Corporation.
‘‘9. Library.
‘‘10. Classification of patents.
‘‘11. Certified copies of records.
‘‘12. Publications.
‘‘13. Exchange of copies of patents with foreign countries.
‘‘14. Copies of patents for public libraries.
‘‘15. Annual report to Congress.’’.
(3) The table of contents for chapter 4 of part I of
title 35, United States Code, is amended by adding at the
end the following new item:
‘‘43. Audits.’’.
(b) OTHER PROVISIONS OF LAW.—
(1) Section 9101(3) of title 31, United States
Code, is amended by adding at the end the follow-
ing:
‘‘(O) the Patent and Trademark Office.’’.
(2) Section 602(d) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 474)
is amended—
1550
(A) in paragraph (20) by striking ‘‘or’’
after the semicolon;
(B) in paragraph (21) by striking the pe-
riod and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(22) the Patent and Trademark Office.’’.
(3) Section 500(e) of title 5, United States
Code (5 U.S.C. 500(e)) is amended by striking
‘‘Patent Office’’ and inserting ‘‘Patent and Trade-
mark Office’’.
(4) Section 5102(c)(23) of title 5, United
States Code, is amended by striking ‘‘, Department
of Commerce’’.
(5) Section 5316 of title 5, United States Code
(5 U.S.C. 5316) is amended by striking ‘‘Commis-
sioner of Patents, Department of Commerce.’’,
‘‘Deputy Commissioner of Patents and Trade-
marks.’’, ‘‘Assistant Commissioner for Patents.’’,
and ‘‘Assistant Commissioner for Trademarks.’’.
(6) Section 12 of the Act of February 14, 1903
(15 U.S.C. 1511) is amended by striking ‘‘(d) Pat-
ent and Trademark Office;’’ and redesignating sub-
sections (a) through (g) as paragraphs (1) through
(6), respectively.
1551
(7) The Act of April 12, 1892 (27 Stat. 395;
20 U.S.C. 91) is amended by striking ‘‘Patent Of-
fice’’ and inserting ‘‘Patent and Trademark Office’’.
(8) Sections 505(m) and 512(o) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 355(m)
and 360b(o)) are each amended by striking ‘‘of the
Department of Commerce’’.
(9) Section 105(e) of the Federal Alcohol Ad-
ministration Act (27 U.S.C. 205(e)) is amended by
striking ‘‘Patent Office’’ and inserting ‘‘Patent and
Trademark Office’’.
(10) Section 1744 of title 28, United States
Code is amended—
(A) by striking ‘‘Patent Office’’ each place
it appears and inserting ‘‘Patent and Trade-
mark Office’’; and
(B) by striking ‘‘Commissioner of Patents’’
and inserting ‘‘Commissioner of Patents and
Trademarks’’.
(11) Section 1745 of title 28, United States
Code, is amended by striking ‘‘United States Patent
Office’’ and inserting ‘‘Patent and Trademark Of-
fice’’.
1552
(12) Section 1928 of title 28, United States
Code, is amended by striking ‘‘Patent Office’’ and
inserting ‘‘Patent and Trademark Office’’.
(13) Section 160 of the Atomic Energy Act of
1954 (42 U.S.C. 2190) is amended—
(A) by striking ‘‘Patent Office’’ and insert-
ing ‘‘Patent and Trademark Office’’; and
(B) by striking ‘‘Commissioner of Patents’’
and inserting ‘‘Commissioner of Patents and
Trademarks’’.
(14) Section 305(c) of the National Aeronautics
and Space Act of 1958 (42 U.S.C. 2457(c)) is
amended by striking ‘‘Commissioner of Patents’’ and
inserting ‘‘Commissioner of Patents and Trade-
marks’’.
(15) Section 12(a) of the Solar Heating and
Cooling Demonstration Act of 1974 (42 U.S.C.
5510(a)) is amended by striking ‘‘Commissioner of
the Patent Office’’ and inserting ‘‘Commissioner of
Patents and Trademarks’’.
(16) Section 1111 of title 44, United States
Code, is amended by striking ‘‘Commissioner of Pat-
ents’’ and inserting ‘‘Commissioner of Patents and
Trademarks’’.
1555
immediately before the effective date of the transfer of the
function under this title.
SEC. 17603. SAVINGS PROVISIONS.
(a) LEGAL DOCUMENTS.—All orders, determinations,
rules, regulations, permits, grants, loans, contracts, agree-
ments, certificates, licenses, and privileges—
(1) that have been issued, made, granted, or al-
lowed to become effective by the President, the Sec-
retary of Commerce, any officer or employee of any
office transferred by this title, or any other Govern-
ment official, or by a court of competent jurisdic-
tion, in the performance of any function that is
transferred by this title, and
(2) that are in effect on the effective date of
such transfer (or become effective after such date
pursuant to their terms as in effect on such effective
date),
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, any other author-
ized official, a court of competent jurisdiction, or operation
of law.
(b) PROCEEDINGS.—This title shall not affect any
proceedings or any application for any benefits, service,
license, permit, certificate, or financial assistance pending
1556
on the date of the enactment of this title before an office
transferred by this title, but such proceedings and applica-
tions shall be continued. Orders shall be issued in such
proceedings, appeals shall be taken therefrom, and pay-
ments shall be made pursuant to such orders, as if this
title had not been enacted, and orders issued in any such
proceeding shall continue in effect until modified, termi-
nated, superseded, or revoked by a duly authorized official,
by a court of competent jurisdiction, or by operation of
law. Nothing in this subsection shall be considered to pro-
hibit the discontinuance or modification of any such pro-
ceeding under the same terms and conditions and to the
same extent that such proceeding could have been discon-
tinued or modified if this title had not been enacted.
(c) SUITS.—This title shall not affect suits com-
menced before the date of the enactment of this title, and
in all such suits, proceeding shall be had, appeals taken,
and judgments rendered in the same manner and with the
same effect as if this title had not been enacted.
(d) NONABATEMENT OF ACTIONS.—No suit, action,
or other proceeding commenced by or against the Depart-
ment of Commerce or the Secretary of Commerce, or by
or against any individual in the official capacity of such
individual as an officer or employee of an office trans-
1557
ferred by this title, shall abate by reason of the enactment
of this title.
(e) CONTINUANCE OF SUITS.—If any officer of the
Department of Commerce or the Commerce Programs
Resolution Agency in the official capacity of such officer
is party to a suit with respect to a function of the officer,
and under this title such function is transferred to any
other officer or office, then such suit shall be continued
with the other officer or the head of such other office, as
applicable, substituted or added as a party.
SEC. 17604. TRANSFER OF ASSETS.
Except as otherwise provided in this title, so much
of the personnel, property, records, and unexpended bal-
ances of appropriations, allocations, and other funds em-
ployed, used, held, available, or to be made available in
connection with a function transferred to an official or
agency by this title shall be available to the official or the
head of that agency, respectively, at such time or times
as the Director of the Office of Management and Budget
directs for use in connection with the functions trans-
ferred.
SEC. 17605. DELEGATION AND ASSIGNMENT.
Except as otherwise expressly prohibited by law or
otherwise provided in this title, an official to whom func-
tions are transferred under this title (including the head
1558
of any office to which functions are transferred under this
title) may delegate any of the functions so transferred to
such officers and employees of the office of the official as
the official may designate, and may authorize successive
redelegations of such functions as may be necessary or ap-
propriate. No delegation of functions under this section
or under any other provision of this title shall relieve the
official to whom a function is transferred under this title
of responsibility for the administration of the function.
SEC. 17606. AUTHORITY OF ADMINISTRATOR WITH RE-
SPECT TO FUNCTIONS TRANSFERRED.
(a) DETERMINATIONS.—If necessary, the Adminis-
trator shall make any determination of the functions that
are transferred under this title.
(b) INCIDENTAL TRANSFERS.—The Administrator,
at such time or times as the Administrator shall provide,
may make such determinations as may be necessary with
regard to the functions transferred by this title, and to
make such additional incidental dispositions of personnel,
assets, liabilities, grants, contracts, property, records, and
unexpended balances of appropriations, authorizations, al-
locations, and other funds held, used, arising from, avail-
able to, or to be made available in connection with such
functions, as may be necessary to carry out the provisions
of this title. The Administrator shall provide for the termi-
1559
nation of the affairs of all entities terminated by this title
and for such further measures and dispositions as may
be necessary to effectuate the purposes of this title.
SEC. 17607. PROPOSED CHANGES IN LAW.
Not later than one year after the date of the enact-
ment of this title, the Director of the Office of Manage-
ment and Budget shall submit to the Congress a descrip-
tion of any changes in Federal law necessary to reflect
abolishments, transfers, terminations, and disposals under
this title.
SEC. 17608. CERTAIN VESTING OF FUNCTIONS CONSIDERED
TRANSFERS.
For purposes of this title, the vesting of a function
in a department or office pursuant to reestablishment of
an office shall be considered to be the transfer of the func-
tion.
SEC. 17609. DEFINITIONS.
For purposes of this title, the following definitions
apply:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Commerce
Programs Resolution Agency.
(2) AGENCY.—The term ‘‘Agency’’ means the
Commerce Programs Resolution Agency.
1560
(3) FUNCTION.—The term ‘‘function’’ includes
any duty, obligation, power, authority, responsibility,
right, privilege, activity, or program.
(4) OFFICE.—The term ‘‘office’’ includes any
office, administration, agency, bureau, institute,
council, unit, organizational entity, or component
thereof.
(5) WIND-UP PERIOD.—The term ‘‘wind-up pe-
riod’’ means the period beginning on the effective
date specified in section 17109(a) and ending on the
termination date specified in section 17106(d).
SEC. 17610. LIMITATION ON ANNUAL EXPENDITURES FOR
CONTINUED FUNCTIONS.
(a) IN GENERAL.—The amount expended by the
United States each fiscal year for an agency, or for per-
formance of a transferred function which immediately be-
fore the effective date specified in section 17109(a) was
performed by an agency, officer, or employee of the De-
partment of Commerce, may not exceed 75 percent of the
total amount expended by the United States for that agen-
cy or for performance of that function during fiscal year
1994.
(b) EXEMPTIONS.—Subsection (a) shall not apply to
the performance of a function which immediately before
the effective date specified in section 17109(a) was per-
1561
formed by the Bureau of the Census or the Patent and
Trademark Office.
SEC. 17611. USER FEES.
Within 6 months after the date of the enactment of
this Act, the head of each agency that performs a function
vested in the agency by this title shall report to Congress
its recommendations for implementing user fees to offset
operating costs for the provision of services in the per-
formance of that function.
SEC. 
17612. 
UNOBLIGATED 
BALANCES 
RETURNED 
TO
TREASURY.
Any unobligated balances appropriated to carry out
any program referred to in this Act shall be transferred
to the general fund of the Treasury.
SEC. 17613. ANNUAL GAO REPORT.
(a) REPORT.—Not later than 1 year after the effec-
tive date specified in section 17109(a), and not later than
the end of each 1-year period thereafter, the Comptroller
General of the United States shall submit to the Congress
a report describing the costs, if any, during the 1-year pe-
riod preceding the submission of the report, that were in-
curred by United States exporters as a result of the trans-
fer of the functions of the Bureau of Export Administra-
tion of the Department of Commerce under this title, or
as a result of the limitation on expenditures required by
1562
section 17493. Each such report shall cover, but not be
limited to, costs incurred by exporters as a result of—
(1) delays in the processing of export license
applications;
(2) a reduction in outreach activities of the
Government that educate exporters on complying
with exporting requirements under United States
law;
(3) delays in the processing of commodity clas-
sification requests by exporters regarding the appli-
cability of export controls to specific products and
technical data; and
(4) delays in the processing of requests by ex-
porters for advisory opinions by the Government re-
garding whether specific transactions are likely to be
approved or denied by the Government.
(b) TERMINATION OF PROVISIONS.—If, in any report
submitted under subsection (a), the Comptroller General
determines that costs described in such subsection were
incurred by United States exporters, then sections
17610(a) and 17493(a) shall cease to apply to the func-
tions of the Bureau of Export Administration of the De-
partment of Commerce transferred under this title.
TITLE XVIII—WELFARE REFORM
[Text to be supplied.]
1563
TITLE XIX—CONTRACT TAX
PROVISIONS
[Text to be supplied.]
TITLE XX—BUDGET PROCESS
[Text to be supplied.]
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