I 
108TH CONGRESS 
2D SESSION 
H. R. 3761
To establish the Program Reform Commission to review unnecessary Federal 
programs and make recommendations for termination, modification, or 
retention of such programs, and to state the sense of the Congress 
that the Congress should promptly consider legislation that would make 
the changes in law necessary to implement the recommendations. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 3, 2004
Mr. SMITH of Washington (for himself, Mr. SHAYS, Mr. CASE, Mr. TIERNEY, 
Mr. CARTER, Mr. DUNCAN, Mr. EMANUEL, Mr. BEAUPREZ, Mr. 
HEFLEY, and Mr. KIND) introduced the following bill; which was referred 
to the Committee on Government Reform 
A BILL 
To establish the Program Reform Commission to review un-
necessary Federal programs and make recommendations 
for termination, modification, or retention of such pro-
grams, 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,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Program Reform Com-
mission Act of 2004’’. 
SEC. 2. FINDINGS. 
The Congress finds that—
(1) Federal programs which may have been en-
acted with a valid purpose can become obsolete, or 
no longer in the public interest, making such pro-
grams unnecessary or undesired; 
(2) it is unfair to force the United States tax-
payer to support unnecessary programs that do not 
provide a substantial public benefit or serve the pub-
lic interest; 
(3) the Congress has been unable to evaluate 
methodically those Federal programs 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 programs 
and to the reform or elimination of such programs. 
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 programs of the 
Federal Government.
SEC. 4. DEFINITION. 
For purposes of this Act, the term ‘‘program’’—
(1) except as provided in paragraph (2), means 
a system of services or projects that is provided by 
the Federal Government; and 
(2) does not include a service or project that ex-
ists for the purposes of research and development in 
the broad public interest on the basis of a peer re-
viewed or other open, competitive, merit-based proce-
dure. 
SEC. 5. THE COMMISSION. 
(a) ESTABLISHMENT.—There is established an inde-
pendent commission to be known as the ‘‘Program Reform 
Commission’’ (hereafter in this Act referred to as the 
‘‘Commission’’). 
(b) DUTIES.—The Commission shall—
(1) examine the programs of the Federal Gov-
ernment and identify programs that are no longer 
necessary; 
(2) review unnecessary programs; and 
(3) submit the report required under section 
6(c) to the Congress, making recommendations re-
garding the termination, modification, or retention 
of programs. 
(c) ADVISORY COMMITTEE.—The Commission shall 
be considered an advisory committee within the meaning
of that term in the Federal Advisory Committee Act (5 
U.S.C. App.). 
(d) APPOINTMENT.—
(1) MEMBERS.—The members of the Commis-
sion—
(A) shall be appointed for the life of the 
Commission; and 
(B) shall be composed of 8 members, of 
whom—
(i) 2 shall be appointed by the Speak-
er of the House of Representatives; 
(ii) 2 shall be appointed by the minor-
ity leader of the House of Representatives; 
(iii) 2 shall be appointed by the ma-
jority leader of the Senate, one of whom 
shall be designated by the majority leader 
to serve as a co-chair; and 
(iv) 2 shall be appointed by the minor-
ity leader of the Senate, one of whom shall 
be designated by the minority leader to 
serve as a co-chair. 
(2) CONSULTATION
REQUIRED.—The Speaker 
of the House of Representatives, the minority leader 
of the House of Representatives, the majority leader 
of the Senate, and the minority leader of the Senate
shall consult among themselves prior to the appoint-
ment of the members of the Commission in order to 
achieve, to the maximum extent possible, fair and 
equitable representation of various points of view 
with respect to the matters to be studied by the 
Commission under subsection (b). 
(3) BACKGROUND.—The members shall rep-
resent a broad array of expertise covering, to the ex-
tent practical, all subject matter, programs, and 
laws the Commission is likely to review. 
(e) MEETINGS.—
(1) INITIAL MEETING.—No later than April 1, 
2004, 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 Chairman and rank-
ing minority member of the relevant Committee of 
the Congress having jurisdiction to report legislation 
regarding the subject matter thereof.
(f) VACANCIES.—A vacancy on the Commission shall 
be filled in the same manner as the original appointment. 
(g) PAY AND TRAVEL EXPENSES.—
(1) PAY.—Notwithstanding section 7 of the 
Federal Advisory Committee Act (5 App. U.S.C.), 
each member of the Commission, other than the co-
chairs, 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 actual performance of duties vested 
in the Commission. 
(2) CHAIRMEN.—Notwithstanding section 7 of 
the Federal Advisory Committee Act (5 App. 
U.S.C.), the co-chairs 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 of the Com-
mission shall receive travel expenses, including per 
diem in lieu of subsistence, in accordance with sec-
tion 5702 and 5703 of title 5, United States Code. 
(h) 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 
the Commission intends to review. 
(2) PAY.—Notwithstanding section 7 of the 
Federal Advisory Committee Act (5 App. U.S.C.), 
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.—The Director shall submit peri-
odic reports on administrative and personnel matters 
to the co-chairs of the Commission and the Chair-
man and ranking minority member of the Committee 
on Governmental Affairs of the Senate and the Com-
mittee on Government Reform of the House of the 
Representatives. 
(i) 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) LEGAL STAFF.—The Director shall appoint 
under paragraph (2) such professional legal staff as 
are necessary for the performance of the functions 
of the Commission. 
(4) 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. 
(5) 
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 sub-
sidies 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 
subsidies 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 policymaking decisions 
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 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) Sub-
ject to clause (ii), there may not be more than 
25 persons (including any detailees) on the 
staff at any time. 
(ii) The Commission may increase the 
member of its personnel in excess of the limita-
tion under clause (i), 15 days after submitting 
notification of such increase to the Committee 
on Governmental Affairs of the Senate and the 
Committee on Government Reform 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 
member of the Commission or as a paid mem-
ber of its staff. 
(6) 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 of the 
House of Representatives on the agreement re-
ferred to under subparagraph (A) before enter-
ing into such agreement. 
(j) 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. 
(k) FUNDING.—There are authorized to be appro-
priated to the Commission $4,000,000 to carry out its du-
ties under this Act. 
(l) TERMINATION.—The Commission shall terminate 
on January 1, 2006.
SEC. 6. PROCEDURE FOR MAKING RECOMMENDATIONS TO 
TERMINATE PROGRAMS. 
(a) AGENCY PLAN.—
(1) IN GENERAL.—The head of each Federal 
department or agency shall include in the documents 
submitted in support of the budget of the agency for 
fiscal year 2005 a list identifying all programs ad-
ministered by that department or agency that the 
head of the department or agency determines no 
longer are necessary. 
(2) CONTENTS.—Such list shall include—
(A) a detailed description of each program 
in question; 
(B) a statement identifying and detailing 
the extent to which each service or project of 
the program meets the provisions of section 4; 
(C) a statement summarizing the legisla-
tive history and purpose of such services or 
projects and the laws or policies directly or indi-
rectly giving rise to the need for such programs; 
and 
(D) a recommendation to the Commission 
regarding the termination, modification, or re-
tention of each program identified in the list. 
(b) REVIEW BY THE COMMISSION.—
(1) IN GENERAL.—At any time after the sub-
mission of the budget documents to the Congress, 
the Commission shall conduct public hearings on the 
termination, modification, or retention of programs, 
including the recommendations included in the lists 
required under subsection (a). 
(2) TESTIMONY UNDER OATH.—All testimony 
before the Commission at a public hearing conducted 
under this paragraph shall be presented under oath. 
(c) REPORT AND RECOMMENDATIONS OF COMMIS-
SION.—
(1) REPORT TO CONGRESS.—
(A) REQUIREMENT.—No later than March 
31, 2005, the Commission shall submit a report 
to the Congress containing the Commission’s 
findings and recommendations for termination, 
modification, or retention of each of the pro-
grams reviewed by the Commission. 
(B) CONTENTS.—Such findings and rec-
ommendations 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-