I 
111TH CONGRESS 
2D SESSION 
H. R. 5406 
To establish the Corporate Subsidy Reform Commission to review and identify 
inequitable Federal subsidies and make recommendations for termination, 
modification, or retention of such subsidies, and to state the sense 
of the Congress that the Congress should promptly consider legislation 
that would make the changes in law necessary to implement the rec-
ommendations. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 26, 2010 
Mr. SMITH of Washington (for himself and Ms. SHEA-PORTER) introduced the 
following bill; which was referred to the Committee on Oversight and 
Government Reform, and in addition to the Committee on Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To establish the Corporate Subsidy Reform Commission to 
review and identify inequitable Federal subsidies and 
make recommendations for termination, modification, or 
retention of such subsidies, and to state the sense of 
the Congress that the Congress should promptly consider 
legislation that would make the changes in law necessary 
to implement the recommendations. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Corporate Subsidy Re-
form Commission Act’’. 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) Federal subsidies, including tax advantages, 
which may have been enacted with a valid purpose 
for specific industries or industry segments can— 
(A) fall subject to abuse, causing unantici-
pated and unjustified windfalls to some indus-
tries and industry segments; or 
(B) become obsolete, anticompetitive, or no 
longer in the public interest, making such sub-
sidies unnecessary or undesired; 
(2) it is unfair to force the United States tax-
payer to support unnecessary subsidies, including 
tax advantages, that do not provide a substantial 
public benefit or serve the public interest; 
(3) the Congress has been unable to evaluate 
methodically those Federal subsidies that are unfair 
and unnecessary and require reform or elimination; 
and 
(4) a Commission to advise the Congress is es-
sential to a comprehensive review of such unfair cor-
porate subsidies and to the reform or elimination of 
such subsidies. 
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SEC. 3. PURPOSE. 
The purpose of this Act is to establish a fair and de-
liberative process that will result in the timely identifica-
tion, review, and reform or elimination of unnecessary and 
inequitable subsidies, including tax advantages, provided 
by the Federal Government to entities or industries en-
gaged in profit-making enterprises. 
SEC. 4. DEFINITION. 
For purposes of this Act, the term ‘‘inequitable Fed-
eral subsidy’’— 
(1) except as provided in paragraph (2), means 
a payment, benefit, service, or tax advantage that— 
(A) is provided by the Federal Government 
to any corporation, partnership, joint venture, 
association, or business trust other than— 
(i) a nonprofit organization described 
under section 501(c)(3) of the Internal 
Revenue 
Code 
of 
1986 
(26 
U.S.C. 
501(c)(3)) that is exempt from taxation 
under section 501(a) of the Internal Rev-
enue Code of 1986 (26 U.S.C. 501(a)); or 
(ii) a State or local government or In-
dian Tribe; and 
(B) provides an unfair competitive advan-
tage or financial windfall; and 
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(2) does not include a payment, benefit, service, 
or tax advantage that is awarded for the purposes 
of research and development in the broad public in-
terest on the basis of a peer reviewed or other open, 
competitive, merit-based procedure. 
SEC. 5. CORPORATE SUBSIDY REFORM COMMISSION. 
(a) ESTABLISHMENT.—There is established in the 
legislative branch an independent commission to be known 
as the ‘‘Corporate Subsidy Reform Commission’’ (herein-
after in this Act referred to as the ‘‘Commission’’). 
(b) DUTIES.—The Commission shall— 
(1) examine the programs and laws of the Fed-
eral Government and identify any programs or laws 
that provide inequitable Federal subsidies; 
(2) review inequitable Federal subsidies; and 
(3) submit the report required under section 
6(c) to the Congress, making recommendations re-
garding the termination, modification, or retention 
of inequitable Federal subsidies. 
(c) LIMITATIONS.— 
(1) CREATION OF NEW PROGRAMS OR TAXES.— 
This Act is not intended to result in the creation of 
new programs or taxes. The Commission established 
in this section shall limit its activities to reviewing 
existing programs and laws with the goal of ensuring 
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fairness and equity in the operation and application 
of such programs and laws. 
(2) ELIMINATION OF AGENCIES AND DEPART-
MENTS.—The Commission— 
(A) shall limit its recommendations to the 
termination, modification, or retention of in-
equitable Federal subsidies; and 
(B) shall not recommend the termination 
of any Federal agency or department. 
(d) APPOINTMENT.— 
(1) MEMBERS.—The Commission shall be com-
posed of 8 members, of whom— 
(A) 2 shall be appointed by the Speaker of 
the House of Representatives; 
(B) 2 shall be appointed by the minority 
leader of the House of Representatives; 
(C) 2 shall be appointed by the majority 
leader of the Senate; and 
(D) 2 shall be appointed by the minority 
leader of the Senate. 
(2) CONSULTATION
REQUIRED.—The Speaker 
of the House of Representatives, the minority leader 
of the House of Representatives, the majority leader 
of the Senate, and the minority leader of the Senate 
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shall consult among themselves prior to the appoint-
ment of the members of the Commission. 
(3) BACKGROUND.—The members shall rep-
resent a broad array of expertise and points of view 
with respect to the subject matter, programs, and 
laws the Commission is likely to review. 
(4) LIMITATION
ON
FEDERAL
OFFICER.—No 
officer or employee of a Federal agency may serve 
as a member of the Commission. 
(5) TERMS.—The members of the Commission 
shall be appointed for the life of the Commission. 
(e) CO-CHAIRS.— 
(1) IN GENERAL.—The Commission shall be co- 
chaired by 2 members, selected by the 8 members of 
the Commission. 
(2) HOUSE AND SENATE REPRESENTATION.— 
Of the members selected to be co-chairs— 
(A) one shall be a member appointed 
under 
subsection 
(d)(1)(A) 
or 
subsection 
(d)(1)(B); and 
(B) one shall be a member appointed 
under 
subsection 
(d)(1)(C) 
or 
subsection 
(d)(1)(D). 
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(3) POLITICAL
AFFILIATION.—The two mem-
bers selected to be co-chairs may not be of the same 
political party. 
(f) MEETINGS.— 
(1) INITIAL MEETING.—No later than April 1, 
2011, the Commission shall conduct its first meet-
ing. 
(2) OPEN
MEETINGS.—Each meeting of the 
Commission shall be open to the public, except that 
in cases in which classified information, trade se-
crets, or personnel matters are discussed, the co- 
chairs may close the meeting. All proceedings, infor-
mation, and deliberations of the Commission shall be 
available, upon request, to the Speaker of the House 
of Representatives, the majority leader and minority 
leader of the House of Representatives, the majority 
leader and minority leader of the Senate, and the 
chairman and ranking minority member of the rel-
evant Committee of Congress having jurisdiction to 
report legislation regarding the subject matter there-
of. 
(g) VACANCIES.—A vacancy on the Commission shall 
be filled in the same manner as the original appointment. 
(h) PAY AND TRAVEL EXPENSES.— 
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(1) PAY.—Each member of the Commission, 
other than the co-chairs, shall be paid at a rate 
equal to the daily equivalent of the rate of basic pay 
for level IV of the Executive Schedule under section 
5315 of title 5, United States Code, for each day 
(including travel time) during which the member is 
engaged in the actual performance of duties vested 
in the Commission. 
(2) CO-CHAIRS.—The co-chairs shall be paid for 
each day referred to in paragraph (1) at a rate equal 
to the daily equivalent of the rate of basic pay for 
level III of the Executive Schedule under section 
5314 of title 5, United States Code. 
(3) TRAVEL EXPENSES.—Members of the Com-
mission shall receive travel expenses, including per 
diem in lieu of subsistence, in accordance with sec-
tions 5702 and 5703 of title 5, United States Code. 
(i) DIRECTOR OF STAFF.— 
(1) QUALIFICATIONS.—The co-chairs shall ap-
point as Director an individual who has not, during 
the 12 months preceding the date of such appoint-
ment, served in any of the entities or industries that 
are or might be affected by any of the programs or 
laws the Commission intends to review. 
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