(1) COMMISSION.—The term ‘‘Commission’’ 
means the Corporate Entitlement Reform Commis-
sion established pursuant to section 4(a). 
(2) CORPORATE
ENTITLEMENT.—The term 
‘‘corporate entitlement’’— 
(A) means any direct payment, service, tax 
advantage, tax expenditure, or benefit made by 
the Federal Government to an entity or indus-
try engaged in a profitmaking enterprise, if 
such payment, service, or benefit is provided 
without a reasonable expectation that actions or 
activities undertaken or performed in return for 
such payment, service, or benefit would result 
in a return or benefit to the public at least as 
great as the payment, service, or benefit; 
(B) includes spending subsidies and free or 
below-market-rate services which are provided 
by the Federal Government, or any Federal en-
tity, Federal agency, Government-sponsored en-
terprise, or Government corporation, to or with 
respect to any corporation or other profit-mak-
ing enterprise; 
(C) does not include any payment, service, 
tax advantage, benefit, or protection provided 
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directly or indirectly by the Federal Govern-
ment to— 
(i) any Federal entity, Federal agen-
cy, Government-sponsored enterprise, or 
Government corporation (as defined in sec-
tion 9101 of title 31, United States Code); 
(ii) any State or local government, In-
dian Tribe or Alaska Native village, or re-
gional or village corporation as defined in 
or established pursuant to the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 
1601 et seq.); or 
(iii) any nonprofit organization de-
scribed under section 501(c)(3) of the In-
ternal Revenue Code of 1986 that is ex-
empt from taxation under section 501(a) 
of such Code; and 
(D) does not include any payment, service, 
tax advantage, benefit or protection provided di-
rectly or indirectly by the Federal Government 
that— 
(i) is awarded for the purposes of re-
search and development; 
(ii) primarily benefits public health, 
safety, the environment, or education; 
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(iii) is necessary to comply with inter-
national trade or treaty obligations; 
(iv) is certified by the United States 
Trade Representative as specifically in-
tended and as substantially needed to pro-
tect the foreign trade interests of the 
United States; or 
(v) is for the purpose of procurement 
of property or services by the United 
States Government. 
(3) GOVERNMENT-SPONSORED
ENTERPRISE.— 
The term ‘‘Government-sponsored enterprise’’ means 
the Federal National Mortgage Association, the Fed-
eral Home Loan Mortgage Corporation, the Federal 
Home Loan Bank System, the Farm Credit Banks, 
the Banks for Cooperatives, the Federal Agricultural 
Mortgage Corporation, and any of their affiliated or 
member institutions. 
SEC. 4. THE COMMISSION. 
(a) ESTABLISHMENT.—There is established an inde-
pendent commission to be known as the ‘‘Corporate Enti-
tlement Reform Commission’’. 
(b) DUTIES.—The Commission shall— 
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(1) examine the programs and tax laws of the 
Federal Government and identify programs and tax 
laws that provide corporate entitlements; 
(2) review corporate entitlements; 
(3) recommend $50,000,000,000 in Federal 
Government savings for the period beginning on Oc-
tober 1, 2007, and ending on September 30, 2017; 
and 
(4) transmit the report described in section 5(a) 
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 of such programs and laws. 
(2) ELIMINATION OF AGENCIES AND DEPART-
MENTS.—The Commission shall limit its rec-
ommendations to the termination or reform of pay-
ments, benefits, services, or tax advantages, rather 
than the termination of Federal agencies or depart-
ments. 
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(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 Commission shall be com-
posed of 9 members, as follows: 
(A) 1 member appointed jointly by the 
Speaker of the House of Representatives and 
the majority leader of the Senate. 
(B) 2 members appointed by the Speaker 
of the House of Representatives. 
(C) 2 members appointed by the minority 
leader of the House of Representatives. 
(D) 2 members appointed by the majority 
leader of the Senate. 
(E) 2 members appointed by the minority 
leader of the Senate. 
(2) TERMS OF APPOINTMENT.—The members 
of the Commission shall be appointed not more than 
90 days after the date of the enactment of this Act. 
The members of the Commission shall serve for the 
life of the Commission. 
(3) CONSULTATION
REQUIRED.—The Speaker 
of the House of Representatives, the minority leader 
of the House of Representatives, the majority leader 
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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). 
(4) CHAIR.—The member of the Commission 
appointed pursuant to paragraph (1)(A) shall serve 
as Chair of the Commission. 
(5) 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. 
(6) RESTRICTIONS.—The following restrictions 
shall apply: 
(A) No member of the Commission shall be 
a current Member of Congress. 
(B) No member of the Commission shall 
be on detail from a Federal agency that deals 
directly or indirectly with the Federal payments 
that the Commission intends to review. 
(C) The Chair of the Commission shall not 
have served in any of the entities or industries 
that the Commission intends to review during 
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