I
107TH CONGRESS
1ST SESSION
H. R. 2939
To review, reform, and terminate unnecessary and inequitable Federal
payments, benefits, services, and tax advantages.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 21, 2001
Mr. HOEFFEL (for himself, Mr. TOOMEY, Mr. BORSKI, Mr. BRADY of Penn-
sylvania, Mr. FATTAH, Mr. HILLIARD, Mr. STARK, Mr. TIERNEY, Ms.
PELOSI, Mr. WAXMAN, Mr. CAPUANO, and Ms. CARSON of Indiana) intro-
duced the following bill; which was referred to the Committee on Govern-
ment Reform, and in addition to the Committee on Ways and Means,
Rule, and the Budget, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To review, reform, and terminate unnecessary and inequi-
table Federal payments, benefits, services, and tax ad-
vantages.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Corporate Welfare Re-
form Commission Act of 2001’’.
SEC. 2. FINDINGS.
The Congress finds that—
(1) the cost of corporate welfare is estimated to
be equivalent to nearly 2 weekly paychecks from
every working man and woman in the United States;
(2) various private organizations have estimated
that the annual cost of corporate welfare to the Fed-
eral Government is between $60 and $125 billion,
yet no comprehensive public estimate of that cost is
available;
(3) corporate welfare may discourage private
sector competition and may even have detrimental
consequences to the environment which outweigh the
benefits to the corporate welfare recipient;
(4) some corporate welfare benefits which were
initially provided for valid goals have, over the years,
become redundant or unnecessary;
(5) rather than diminishing, special interest tax
provisions which benefit small numbers of taxpayers
are increasing;
(6) 4 of every 10 companies with more than
$250 million in assets or more than $50 million in
gross receipts paid less than $100,000 in Federal in-
come taxes for 1995;
(7) there has been no congressionally-directed
systematic review of the multitude of corporate wel-
fare benefits which have been institutionalized in
Federal tax provisions or incorporated into other
Federal programs; and
(8) an advisory commission is needed to rec-
ommend to the Congress whether some corporate
welfare provisions need to be revised or terminated.
SEC. 3. PURPOSE.
The purpose of this Act is to establish a congressional
advisory committee to identify and evaluate inequitable
Federal payments.
SEC. 4. DEFINITION.
(a) IN GENERAL.—For purposes of this Act, the term
‘‘inequitable Federal payment’’ means a payment, benefit,
service, or tax advantage that—
(1) is provided by the Federal Government to
any corporation, partnership, joint venture, associa-
tion, business trust, or industry other than—
(A) a nonprofit organization described
under section 501(c)(3) of the Internal Revenue
Code of 1986 that is exempt from taxation
under section 501(a) of the Internal Revenue
Code of 1986; or
(B) a State or local government or Indian
Tribe or Alaska Native village or regional or vil-
lage corporation as defined in or established
pursuant to the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1601 et seq.);
(2) is provided without a reasonable expecta-
tion, demonstrated with the use of reliable perform-
ance criteria, that actions or activities undertaken or
performed in return for such payment, benefit, serv-
ice, or tax advantage would result in a return or
benefit, quantifiable or nonquantifiable, to the public
at least as great as the payment, benefit, service, or
tax advantage; and
(3) provides an unfair competitive advantage or
financial windfall.
(b) EXCEPTION.—Such term shall not include a pay-
ment, benefit, service, or tax advantage that—
(1) is awarded for the purposes of research and
development that—
(A) is in the broad public interest on the
basis of a peer reviewed or other open, competi-
tive, merit-based procedure;
(B) is for a purpose consistent with the
mission of the agency;
(C) supports competing technologies at lev-
els appropriate to their potential, as determined
by an appropriate priority setting process; and
(D) the private sector cannot reasonably be
expected to undertake without Federal support
at a level or in a timeframe consistent with the
payment, benefit, service, or tax advantage’s po-
tential to provide broad economic or other pub-
lic benefit;
(2) primarily benefits public health, safety, the
environment, or education;
(3) is necessary to comply with international
trade or treaty obligations; or
(4) is for the purpose of procurement of prop-
erty or services by the United States Government.
SEC. 5. COMMISSION.
(a) ESTABLISHMENT.—There is established an inde-
pendent commission to be known as the ‘‘Corporate Wel-
fare Reform Commission’’ (hereafter in this Act, referred
to as the ‘‘Commission’’).
(b) DUTIES.—The Commission shall—
(1) examine the programs and tax laws of the
Federal Government and identify programs and tax
laws that provide inequitable Federal payments;
(2) review inequitable Federal payments; and
(3) submit the report required under section 6
to the Congress.
(c) LIMITATIONS.—
(1) CREATION OF NEW PROGRAMS OR TAXES.—
This Act is not intended to result in the creation of
new programs or taxes, and the Commission estab-
lished in this section shall limit its activities to re-
viewing existing programs or tax laws with the goal
of ensuring fairness and equity in the operation and
application thereof.
(2) ELIMINATION OF AGENCIES AND DEPART-
MENTS.—The Commission shall limit its rec-
ommendations to the termination or reduction of
payments, benefits, services, or tax advantages, rath-
er than the termination of Federal agencies or de-
partments.
(d) ADVISORY COMMITTEE.—The Commission shall
be considered an advisory committee within the meaning
of the Federal Advisory Committee Act (5 U.S.C. App.).
(e) APPOINTMENT.—
(1) MEMBERS.—The Commissioners shall be
appointed for the life of the Commission and shall
be composed of 5 members of whom—
(A) one shall be appointed jointly by the
Speaker of the House of Representatives and
the majority leader of the Senate;
(B) one shall be appointed by the Speaker
of the House of Representatives;
(C) one shall be appointed by the minority
leader of the House of Representatives;
(D) one shall be appointed by the majority
leader of the Senate; and
(E) one shall be appointed by the minority
leader of the Senate.
Such appointments shall be made not later than 90
days after the date of the enactment of this Act.
(2) CONSULTATION
REQUIRED.—The Speaker
of the House of Representatives, the minority leader
of the House of Representatives, the majority leader
of the Senate, and the minority leader of the Senate
shall consult among themselves prior to the appoint-
ment of the members of the Commission in order to
achieve, to the maximum extent possible, fair and
equitable representation of various points of view
with respect to the matters to be studied by the
Commission under subsection (b).
(3) CHAIRMAN.—The Chairman of the Commis-
sion shall be the member appointed as provided in
paragraph (1)(A).
(4) BACKGROUND.—The members shall rep-
resent a broad array of expertise covering, to the ex-
tent practical, all subject matter, programs, and tax
laws the Commission is likely to review.
(f) TERMS.—Each member of the Commission in-
cluding the Chairman shall serve until the termination of
the Commission.
(g) MEETINGS.—
(1) INITIAL
MEETING.—Not later than 180
days after the date of the enactment of this Act, the
Commission shall conduct its first meeting. The first
nonadministrative business of the Commission shall
be to establish criteria for evaluating whether a pay-
ment, benefit, service, or tax advantage is an inequi-
table Federal payment for purposes of this Act.
(2) OPEN
MEETINGS.—Each meeting of the
Commission shall be open to the public. In cases
where classified information, trade secrets, or per-
sonnel matters are discussed, the Chairman may
close the meeting. All proceedings, information, and
deliberations of the Commission shall be available,
upon request, to the chairman and ranking member
of the relevant committees of Congress.
(h) VACANCIES.—A vacancy on the Commission—
(1) shall be filled in the same manner as the
original appointment not later than 30 days after
the Commission is given notice of the vacancy, and
(2) shall not affect the power of the remaining
members to execute the duties of the Commission.
(i) PAY AND TRAVEL EXPENSES.—
(1) PAY.—Notwithstanding section 7 of the
Federal Advisory Committee Act (5 U.S.C. App.),
each Commissioner, other than the Chairman, shall
be paid at a rate equal to the daily equivalent of the
minimum annual 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 ac-
tual performance of duties vested in the Commis-
sion.
(2) CHAIRMAN.—Notwithstanding section 7 of
the Federal Advisory Committee Act (5 U.S.C.
App.), the Chairman shall be paid for each day re-
ferred to in paragraph (1) at a rate equal to the
daily payment of the minimum annual rate of basic
pay payable for level III of the Executive Schedule
under section 5314 of title 5, United States Code.
(3) TRAVEL EXPENSES.—Members shall receive
travel expenses, including per diem in lieu of subsist-
ence, in accordance with section 5702 and 5703 of
title 5, United States Code.
(j) DIRECTOR OF STAFF.—
(1) QUALIFICATIONS.—The Chairman shall ap-
point a Director who has not served in any of the
entities or industries that the Commission intends
to review during the 12 months preceding the date
of such appointment.
(2) PAY.—Notwithstanding section 7 of the
Federal Advisory Committee Act (5 U.S.C. App.),
the Director shall be paid at the rate of basic pay
payable for level IV of the Executive Schedule under
section 5315 of title 5, United States Code.
(3) REPORTS.—On administrative and per-
sonnel matters, the Director shall submit periodic
reports to the Chairman of the Commission and the
chairman and ranking member of the Committee on
Governmental Affairs of the Senate and the Com-
mittee on Government Reform and Oversight of the
House of the Representatives.
(k) STAFF.—
(1) ADDITIONAL PERSONNEL.—Subject to para-
graphs (2) and (4), the Director, with the approval
of the Commission, may appoint and fix the pay of
additional personnel.
(2) APPOINTMENTS.—The Director may make
such appointments without regard to the provisions
of title 5, United States Code, governing appoint-
ments in the competitive service, and any personnel
so appointed may be paid without regard to the pro-
visions of chapter 51 and subchapter III of chapter
53 of that title relating to classification and General
Schedule pay rates.
(3) DETAILEES.—Upon the request of the Di-
rector, the head of any Federal department or agen-
cy may detail any of the personnel of that depart-
ment or agency to the Commission to assist the
Commission in accordance with an agreement en-
tered into with the Commission.
(4) 
RESTRICTIONS
ON
PERSONNEL
AND
DETAILEES.—The following restrictions shall apply
to personnel and detailees of the Commission:
(A) PERSONNEL.—No more than one-third
of the personnel detailed to the Commission
may be on detail from Federal agencies that
deal directly or indirectly with the Federal pay-
ments the Commission intends to review.
(B) ANALYSTS.—No more than one-fifth of
the professional analysts of the Commission
may be persons detailed from a Federal agency
that deals directly or indirectly with the Federal
payments the Commission intends to review.
(C) LEAD ANALYST.—No person detailed
from a Federal agency to the Commission may
be assigned as the lead professional analyst
with respect to an entity or industry the Com-
mission intends to review if the person has been
involved in regulatory or policy-making deci-
sions affecting any such entity or industry in
the 12 months preceding such assignment.
(D) DETAILEE.—A person may not be de-
tailed from a Federal agency to the Commission
if, within 12 months before the detail is to
begin, that person participated personally and
substantially in any matter within that par-
ticular agency concerning the preparation of
recommendations under this Act.
(E) FEDERAL OFFICER OR EMPLOYEE.—
No member of a Federal agency, and no officer
or employee of a Federal agency, may—
(i) prepare any report concerning the
effectiveness, fitness, or efficiency of the
performance on the staff of the Commis-
sion of any person detailed from a Federal
agency to that staff;
(ii) review the preparation of such re-
port; or
(iii) approve or disapprove such a re-
port.
(F) LIMITATION ON STAFF SIZE.—
(i) Subject to clause (ii), there may
not be more than 50 persons (including
any detailees) on the staff at any time.
(ii) The Commission may increase
personnel in excess of the limitation under
clause (i), 15 days after submitting notifi-
cation of such increase to the Committee
on Governmental Affairs of the Senate and
the Committee on Government Reform and
Oversight of the House of Representatives.
(G) LIMITATION ON FEDERAL OFFICER.—
No member of a Federal agency and no em-
ployee of a Federal agency may serve as a Com-
missioner or receive additional compensation by
reason of being a member of the staff.
(5) ASSISTANCE.—
(A) IN GENERAL.—The Comptroller Gen-
eral of the United States may provide assist-
ance, including the detailing of employees, to
the Commission in accordance with an agree-
ment entered into with the Commission.
(B) 
CONSULTATION.—The 
Commission
and the Comptroller General of the United
States shall consult with the Committee on
Governmental Affairs of the Senate and the
Committee on Government Reform and Over-
sight of the House of Representatives on the
agreement referred to under subparagraph (A)
before entering into such agreement.
(l) OTHER AUTHORITY.—
(1) EXPERTS AND CONSULTANTS.—The Com-
mission may procure by contract, to the extent funds
are available, the temporary or intermittent services
of experts or consultants pursuant to section 3109
of title 5, United States Code.
(2) LEASING.—The Commission may lease
space and acquire personal property to the extent
that funds are available.
(m) FUNDING.—
(1) COMMISSION.—There are authorized to be
appropriated to the Commission such funds as are
necessary to carry out its duties under this Act.
(2) COMPTROLLER GENERAL.—There are au-
thorized to be appropriated to the Comptroller Gen-
eral of the United States such funds as are nec-
essary to carry out its duties under subsection
(k)(5).
(n) TERMINATION.—The Commission shall terminate
on the 90th day after the date that the Commission sub-
mits its report under section 6(a)(1).
SEC. 6. REPORT; CONGRESSIONAL CONSIDERATION.
(a) REPORT OF COMMISSION.—
(1) REPORT TO CONGRESS.—
(A) IN GENERAL.—Not later than 1 year
after the date of the first meeting of the Com-
mission, the Commission shall submit to each
House of Congress a report containing—
(i) the Commission’s findings, and
(ii) recommendations agreed to by at
least 3 Commission members for the termi-
nation, reduction, or retention of each of
the inequitable Federal payments reviewed
by the Commission.
(B) SPECIFICATIONS.—Such findings and
recommendations shall specify—
(i) all actions, circumstances, and con-
siderations relating to or bearing upon the
recommendations; and
(ii) to the maximum extent prac-
ticable, the estimated effect of the rec-
ommendations upon the policies, laws and
programs directly or indirectly affected by
the recommendations.
(2) REVIEW
OF
PRELIMINARY
REPORT
BY
COMPTROLLER GENERAL.—