I 
108TH CONGRESS 
1ST SESSION H. R. 3082
To review, reform, and terminate unnecessary and inequitable Federal 
payments, benefits, services, and tax advantages. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 11, 2003
Mr. HOEFFEL (for himself, Mr. UDALL of New Mexico, and Mr. BROWN of 
Ohio) introduced the following bill; which was referred to the Committee 
on Government Reform, and in addition to the Committees on Ways and 
Means, Rules, and the Budget, for a period to be subsequently deter-
mined 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 2003’’. 
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) corporate income tax revenues as a percent-
age of GDP dropped from 1.6 percent in 1992 to 
1.4 percent in 2002, while revenues from individual 
income taxes increased over the same period from 
7.7 percent of GDP to 8.3 percent; 
(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;
(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.—
(A) IN
GENERAL.—Not later than 120 
days before the submission of the report under 
paragraph (1), the Commission shall submit the 
most recent version of such report to Comp-
troller General of the United States. 
(B) ANALYSIS
BY
COMPTROLLER
GEN-
ERAL.—Not later than 60 days after receiving 
the version of the report referred to in subpara-
graph (A), the Comptroller General of the 
United States shall submit to the Commission 
a report containing a detailed analysis of such 
version of the report. 
(b) SUBMISSION
OF RECOMMENDATIONS
TO
THE 
SENATE AND HOUSE OF REPRESENTATIVES.—
(1) SUBMISSION
TO
CONGRESS.—The rec-
ommendations submitted to the Congress under sub-
section (a) shall be submitted to the Senate and the 
House of Representatives on the same day, and shall 
be delivered to the Secretary of the Senate if the 
Senate is not in session, and to the Clerk of the 
House of Representatives if the House is not in ses-
sion. 
(2) FEDERAL
REGISTER.—Any recommenda-
tions and accompanying information submitted
under subsection (a) shall be printed in the first 
issue of the Federal Register after such submission. 
(c) INTRODUCTION.—
(1) DATE OF INTRODUCTION.—Not later than 
75 days after the date the report under subsection 
(a) is submitted to the Congress, the majority leader 
of the Senate or his designee, and the Speaker of 
the House of Representatives, or his designee, shall 
introduce a bill (or bills as provided under para-
graph (2)) that implements the recommendations 
submitted under subsection (a). 
(2) MULTIPLE BILLS.—The majority leader of 
the Senate, or his designee, or the Speaker of the 
House of Representatives, or his designee, shall in-
troduce a bill or separate bills ensuring that all such 
recommendations will be implemented. 
(d) COMMITTEE REFERRAL AND ACTION.—
(1) IN GENERAL.—
(A) IN
GENERAL.—Any committee to 
which a bill or bills introduced under subsection 
(c) is referred shall report such bill no later 
than 120 calendar days after the date of refer-
ral. No amendment during committee consider-
ation of a bill or bills introduced under sub-
section (c) shall be in order unless that amend-
ment is confined to terminating or reducing an 
inequitable Federal payment as defined in sec-
tion 4 of this Act. Any such reported bill shall 
be referred to the Committee on Governmental 
Affairs of the Senate or the Committee on Gov-
ernment Reform and Oversight of the House of 
Representatives, as applicable. 
(B) COMMITTEES ON FINANCE AND WAYS 
AND MEANS.—
(i) IN GENERAL.—Any bill referred to 
the Committee on Finance or the Com-
mittee on Ways and Means that contains 
revenue increases may be amended to in-
clude reductions in revenues in the form of 
tax cuts in an amount up to the amount 
of the revenue increases. 
(ii) SCORECARD.—If the bill referred 
to in clause (i) is enacted into law, any 
amount of revenue reductions not made by 
the bill as provided in clause (i) shall be 
credited to the pay-as-you-go scorecard 
under section 252 of the Balanced Budget 
and Emergency Deficit Control Act of 
1985 and may only be offset by legislation 
reducing revenues.
(2) DISCHARGE.—If a committee does not re-
port a bill within the 120-day period as provided 
under paragraph (1), such bill shall be discharged 
from the committee and referred to the Committee 
on Governmental Affairs of the Senate or the Com-
mittee on Government Reform and Oversight of the 
House of Representatives, as applicable. 
(3) REPORT TO FLOOR; CONSOLIDATION.—
(A) IN GENERAL.—No later than the first 
day the Senate or the House of Representatives 
(as applicable) is in session following 10 cal-
endar days in session after the end of the 120-
day period described under paragraphs (1) and 
(2), the Committee on Governmental Affairs of 
the Senate and the Committee on Government 
Reform and Oversight of the House of Rep-
resentatives, as applicable, shall—
(i) consolidate all bills referred under 
paragraphs (1) and (2) into a single bill 
(without substantive amendment) and re-
port such bill to the Senate or the House 
of Representatives; or 
(ii) if only 1 bill is referred under 
paragraph (1) or (2), report such bill
(without amendment) to the Senate or 
House of Representatives. 
(B) LEGISLATIVE CALENDAR.—The bill re-
ported under subparagraph (A) shall be placed 
on the legislative calendar of the appropriate 
House. 
(e) PROCEDURE IN SENATE AFTER REPORT OF COM-
MITTEE; DEBATE; AMENDMENTS.—
(1) DEBATE ON BILL.—Debate in the Senate 
on a bill reported by the Committee on Govern-
mental Affairs under subsection (d)(3), and all 
amendments thereto and debatable motions and ap-
peals in connection therewith, shall be limited to not 
more than 30 hours. The time shall be equally di-
vided between, and controlled by, the majority leader 
and minority leader or their designees. 
(2) DEBATE ON AMENDMENTS.—Debate in the 
Senate on any amendment to the bill shall be limited 
to 1 hour, to be equally divided between, and con-
trolled by, the mover and the manager of the bill, 
and debate on any amendment to an amendment, 
debatable motion, or appeal shall be limited to 30 
minutes, to be equally divided between, and con-
trolled by, the mover and the manager of the bill, ex-
cept that in the event the manager of the bill is in
favor of any such amendment, motion or appeal, the 
time in opposition thereto shall be controlled by the 
minority leader or his designee. 
(3) LIMIT OF DEBATE.—
(A) A motion to further limit debate is not 
debatable. A motion by the majority leader or 
his designee to extend debate is not debatable. 
A motion to recommit is not in order. 
(B) No amendment to the bill reported by 
the Committee on Governmental Affairs under 
subsection (d)(3) shall be in order unless—
(i) that amendment is confined to ter-
minating or reducing an inequitable Fed-
eral payment as defined by section 4 of 
this Act; 
(ii) that amendment is germane to the 
bill reported by the Committee on Govern-
mental Affairs; and 
(iii) for the purposes of such bill, 
‘‘germane’’ means only amendments which 
strike language from such bill, or restore 
language in the bill or bills introduced 
under subsection (c). 
(4) CONFERENCE REPORTS.—
(A) MOTION TO PROCEED.—A motion to 
proceed to the consideration of the conference 
report on a bill subject to the procedures of this 
section and reported to the Senate may be 
made even though a previous motion to the 
same effect has been disagreed to. 
(B) TIME LIMITATION.—The consideration 
in the Senate of the conference report on the 
bill and any amendments in disagreement there-
to, including all debatable motions and appeals 
in connection therewith, shall be limited to 5 
hours, to be equally divided between, and con-
trolled by, the majority leader and minority 
leader or their designees. Debate on any debat-
able motion, appeal related to the conference re-
port, or any amendment to an amendment in 
disagreement, shall be limited to 30 minutes, to 
be equally divided between, and controlled by, 
the mover and the manager of the conference 
report (or a message between Houses). 
(f) PROCEDURE IN HOUSE OF REPRESENTATIVES 
AFTER REPORT OF THE COMMITTEE; DEBATE.—
(1) MOTION TO CONSIDER.—When the Com-
mittee on Government Reform and Oversight of the 
House of Representatives reports a bill under sub-
section (d)(3) it is in order (at any time after the 
fifth day (excluding Saturdays, Sundays, and legal 
holidays) following the day on which any committee 
report filed on a bill referred under subsection (d)(1) 
to the Committee on Government Reform and Over-
sight has been available to Members of the House) 
to move to proceed to the consideration of the bill 
reported to the House of Representatives. The mo-
tion is highly privileged and is not debatable. An 
amendment to the motion is not in order, and it is 
not in order to move to reconsider the vote by which 
the motion is agreed to or disagreed to. 
(2) DEBATE.—General debate on the bill in the 
House of Representatives shall be limited to not 
more than 10 hours, which shall be divided equally 
between the majority and minority parties. A motion 
further to limit debate is not debatable. A motion to 
postpone debate is not in order, and it is not in 
order to move to reconsider the vote by which the 
bill is agreed to or disagreed to. 
(3) TERMS OF CONSIDERATION.—Consideration 
of the bill by the House of Representatives shall be 
in the Committee of the Whole, and the bill shall be 
considered for amendment under the 5-minute rule 
in accordance with the applicable provisions of rule
(1) as an exercise of the rulemaking power of 
the Senate and the House of Representatives, re-
spectively, but applicable only with respect to the 
procedure to be followed in that House in the case 
of a bill under this section, and it supersedes other 
rules only to the extent that it is inconsistent with 
such rules; and 
(2) with full recognition of the constitutional 
right of either House to change the rules as far as 
relating to the procedure of that House at any time, 
in the same manner, and to the same extent as in 
the case of any other rule of that House.
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