IIA
104TH CONGRESS
1ST SESSION
H. R. 1215
IN THE SENATE OF THE UNITED STATES
APRIL 6 (legislative day, APRIL 5), 1995
Received; read twice and referred to the Committee on Finance
AN ACT
To amend the Internal Revenue Code of 1986 to strengthen
the American family and create jobs.
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 ‘‘Tax Fairness and
Deficit Reduction Act of 1995’’.
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TITLE I—DISCRETIONARY
SAVINGS
SEC. 1001. SHORT TITLE.
This title may be cited as the ‘‘Discretionary Spend-
ing Reduction and Control Act of 1995’’.
SEC. 1002. DISCRETIONARY SPENDING LIMITS.
(a) LIMITS.—Section 601(a)(2) of the Congressional
Budget Act of 1974 is amended by striking subparagraphs
(A), (B), (C), (D), and (F), by redesignating subpara-
graph (E) as subparagraph (A) and by striking ‘‘and’’ at
the end of that subparagraph, and by inserting after sub-
paragraph (A) the following new subparagraphs:
‘‘(B) with respect to fiscal year 1996, for
the discretionary category: $502,994,000,000 in
new budget authority and $537,946,000,000 in
outlays;
‘‘(C) with respect to fiscal year 1997, for
the discretionary category: $497,816,000,000 in
new budget authority and $531,793,000,000 in
outlays;
‘‘(D) with respect to fiscal year 1998, for
the discretionary category: $489,046,000,000 in
new budget authority and $523,703,000,000 in
outlays;
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‘‘(E) with respect to fiscal year 1999, for
the discretionary category: $491,586,000,000 in
new budget authority and $522,063,000,000 in
outlays; and
‘‘(F) with respect to fiscal year 2000, for
the discretionary category: $492,282,000,000 in
new budget authority and $521,690,000,000 in
outlays;’’.
(b) COMMITTEE
ALLOCATIONS
AND
ENFORCE-
MENT.—Section 602 of the Congressional Budget Act of
1974 is amended—
(1) in subsection (c), by striking ‘‘1995’’ and
inserting ‘‘2000’’ and by striking its last sentence;
and
(2) in subsection (d), by striking ‘‘1992 TO
1995’’ in the side heading and inserting ‘‘1995 TO
2000’’ and by striking ‘‘1992 through 1995’’ and in-
serting ‘‘1995 through 2000’’.
(c) FIVE-YEAR
BUDGET
RESOLUTIONS.—Section
606 of the Congressional Budget Act of 1974 is amend-
ed—
(1) in subsection (a), by striking ‘‘1992, 1993,
1994, or 1995’’ and inserting ‘‘1995, 1996, 1997,
1998, 1999, or 2000’’; and
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(2) in subsection (d)(1), by striking ‘‘1992,
1993, 1994, and 1995’’ and inserting ‘‘1995, 1996,
1997, 1998, 1999, and 2000’’, and by striking ‘‘(i)
and (ii)’’.
(d) EFFECTIVE DATE.—Section 607 of the Congres-
sional Budget Act of 1974 is amended by striking ‘‘1991
to 1998’’ and inserting ‘‘1995 to 2000’’.
(e) SEQUESTRATION
REGARDING
CRIME
TRUST
FUND.—(1) Section 251A(b)(1) of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended
by striking subparagraphs (B), (C), and (D) and its last
two sentences and inserting the following:
‘‘(B) 
For 
fiscal 
year 
1996,
$1,827,000,000.
‘‘(C) For fiscal year 1997, $3,082,000,000.
‘‘(D) 
For 
fiscal 
year 
1998,
$3,840,000,000.
‘‘(E) 
For 
fiscal 
year 
1999,
$4,415,000,000.
‘‘(F) 
For 
fiscal 
year 
2000,
$4,874,000,000.
‘‘The appropriate levels of new budget authority are
as follows: for fiscal year 1996, $3,357,000,000; for
fiscal year 1997, $3,915,000,000; for fiscal year
1998, 
$4,306,000,000; 
for 
fiscal 
year 
1999,
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$5,089,000,000; 
and 
for 
fiscal 
year 
2000,
$5,089,000,000.’’.
(2) The last two sentences of section 310002 of the
Violent Crime Control and Law Enforcement Act of 1994
(42 U.S.C. 14212) are repealed.
SEC. 1003. GENERAL STATEMENT AND DEFINITIONS.
(a) GENERAL STATEMENT.—Section 250(b) of the
Balanced Budget and Emergency Deficit Control Act of
1985 is amended by striking the first sentence and insert-
ing the following: ‘‘This part provides for the enforcement
of deficit reduction through discretionary spending limits
and pay-as-you-go requirements for fiscal years 1995
through 2000.’’.
(b) DEFINITIONS.—Section 250(c) of the Balanced
Budget and Emergency Deficit Control Act of 1985 is
amended—
(1) by striking paragraph (4) and inserting the
following:
‘‘(4) The term ‘category’ means all discre-
tionary appropriations.’’;
(2) by striking paragraph (6) and inserting the
following:
‘‘(6) The term ‘budgetary resources’ means new
budget authority, unobligated balances, direct spend-
ing authority, and obligation limitations.’’;
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(3) in paragraph (9), by striking ‘‘1992’’ and
inserting ‘‘1995’’;
(4) in paragraph (14), by striking ‘‘1995’’ and
inserting ‘‘2000’’; and
(5) by striking paragraph (17) and by redesig-
nating paragraphs (18) through (21) as paragraphs
(17) through (20), respectively.
SEC. 1004. ENFORCING DISCRETIONARY SPENDING LIMITS.
Section 251 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended—
(1) in the side heading of subsection (a), by
striking ‘‘1991–1998’’ and inserting ‘‘1995–2000’’;
(2) in the first sentence of subsection (b)(1), by
striking ‘‘1992, 1993, 1994, 1995, 1996, 1997 or
1998’’ and inserting ‘‘1995, 1996, 1997, 1998,
1999, or 2000’’ and by striking ‘‘through 1998’’ and
inserting ‘‘through 2000’’;
(3) in subsection (b)(1), by striking subpara-
graphs (B) and (C) and by striking ‘‘the following:’’
and all that follows through ‘‘The adjustments’’ and
inserting ‘‘the following: the adjustments’’;
(4) in subsection (b)(2), by striking ‘‘1991,
1992, 1993, 1994, 1995, 1996, 1997, or 1998’’ and
inserting ‘‘1995, 1996, 1997, 1998, 1999, or 2000’’
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and by striking ‘‘through 1998’’ and inserting
‘‘through 2000’’;
(5) by striking subparagraphs (A), (B), and (C)
of subsection (b)(2);
(6) in subsection (b)(2)(E), by striking clauses
(i), (ii), and (iii) and by striking ‘‘(iv) if, for fiscal
years 1994, 1995, 1996, 1997, and 1998’’ and in-
serting ‘‘If, for fiscal years 1995, 1996, 1997, 1998,
1999, and 2000’’; and
(7) in subsection (b)(2)(F), strike everything
after ‘‘the adjustment in outlays’’ and insert ‘‘for a
category for a fiscal year shall not exceed 0.5 per-
cent of the adjusted discretionary spending limit on
outlays for that fiscal year in fiscal year 1996, 1997,
1998, 1999, or 2000.’’.
SEC. 1005. ENFORCING PAY-AS-YOU-GO.
Section 252 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended—
(1) in the side heading of subsection (a), by
striking ‘‘1992–1998’’ and inserting ‘‘1995–2000’’;
(2) in subsection (d), by striking ‘‘1998’’ each
place it appears and inserting ‘‘2000’’; and
(3) in subsection (e), by striking ‘‘1991 through
1998’’ and inserting ‘‘1995 through 2000’’ and by
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striking ‘‘through 1995’’ and inserting ‘‘through
2000’’.
SEC. 1006. REPORTS AND ORDERS.
Section 254 of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended—
(1) in subsection (d)(2), by striking ‘‘1998’’
and inserting ‘‘2000’’; and
(2) in subsection (g), by striking ‘‘1998’’ each
place it appears and inserting ‘‘2000’’.
SEC. 1007. TECHNICAL CORRECTION.
Section 258 of the Balanced Budget and Emergency
Deficit Control Act of 1985, entitled ‘‘Modification of
Presidential Order’’, is repealed.
SEC. 1008. EFFECTIVE DATE.
(a) EXPIRATION.—Section 275(b) of the Balanced
Budget and Emergency Deficit Control Act of 1985 is
amended by striking ‘‘1995’’ and inserting ‘‘2000’’.
(b) EXPIRATION.—Section 14002(c)(3) of the Omni-
bus Budget Reconciliation Act of 1993 (2 U.S.C. 900
note; 2 U.S.C. 665 note) is repealed.
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SEC. 1009. SPECIAL RULE ON INTERRELATIONSHIP BE-
TWEEN CHANGES IN DISCRETIONARY SPEND-
ING LIMITS AND PAY-AS-YOU-GO REQUIRE-
MENTS.
(a)(1) Section 252 of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by
adding at the end the following new subsection:
‘‘(f) SPECIAL RULE
ON INTERRELATIONSHIP
BE-
TWEEN SECTIONS 251, 251A, and 252.—Whenever the
Committee on the Budget of the House of Representatives
or the Senate reports legislation that decreases the discre-
tionary spending limits for budget authority and outlays
for a fiscal year set forth in section 601(a)(2) of the Con-
gressional Budget Act of 1974 or in section 251A(b) of
the Balanced Budget and Emergency Deficit Control Act
of 1985, or both, then, for purposes of subsection (b), an
amount equal to that decrease in the discretionary spend-
ing limit for outlays shall be treated as direct spending
legislation decreasing the deficit for that fiscal year.’’.
(2) Section 310(a) of the Congressional Budget Act
of 1974 is amended by striking ‘‘or’’ at the end of para-
graph (3), by redesignating paragraph (4) as paragraph
(5) and by striking ‘‘and (3)’’ in such redesignated para-
graph (5) and inserting ‘‘(3), and (4)’’, and by inserting
after paragraph (3) the following new paragraph:
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‘‘(4) carry out section 252(f) of the Balanced
Budget and Emergency Deficit Control Act of 1985;
or’’.
(b) For purposes of section 252(f) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (as
amended by subsection (a)(1))—
(1) this Act shall be deemed to be legislation re-
ported by the Committee on the Budget of the
House of Representatives; and
(2)(A) reductions in the discretionary spending
limit for outlays set forth in section 601(a)(2) of the
Congressional Budget Act of 1974 for fiscal years
1999 and 2000 under section 1002 shall be meas-
ured as reductions from the discretionary spending
limit for outlays for fiscal year 1998 as in effect im-
mediately before the enactment of this Act; and
(B) reductions in the discretionary spending
limit for outlays set forth in section 251A(b) of the
Balanced Budget and Emergency Deficit Control
Act of 1985 for fiscal years 1999 and 2000 under
section 1002 shall be measured as reductions from
the level for outlays for fiscal year 1999 and 2000,
as the case may be, referred to in the last two sen-
tences of section 251A(b)(1) as in effect immediately
before the enactment of this Act.
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(c) In the final sequestration report of the Director
of the Office of Management and Budget for fiscal year
1996—
(1) 
all 
adjustments 
required 
by 
section
251(b)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985 made after the seques-
tration preview report for fiscal year 1996 shall be
made to the discretionary spending limits set forth
in 601(a)(2) of the Congressional Budget Act of
1974 as amended by section 1002; and
(2) all statutory changes in the discretionary
spending limits set forth in 601(a)(2) of the Con-
gressional Budget Act of 1974 made after issuance
of the sequestration preview report for fiscal year
1996 of the Director of the Office of Management
and Budget and before the date of enactment of this
Act shall be made to those limits as amended by sec-
tion 1002.
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TITLE 
II—EXTENSION 
OF 
AU-
THORITY OF FEDERAL COM-
MUNICATIONS 
COMMISSION
TO USE COMPETITIVE BID-
DING
SEC. 2001. EXTENSION OF AUTHORITY.
Section 309(j)(11) of the Communications Act of
1934 (47 U.S.C. 309(j)(11)) is amended by striking ‘‘Sep-
tember 30, 1998’’ and inserting ‘‘September 30, 2000’’.
TITLE 
III—PRIVATIZATION 
OF
THE UNITED STATES ENRICH-
MENT CORPORATION
SEC. 3001. SHORT TITLE AND REFERENCE.
(a) SHORT TITLE.—This title may be cited as the
‘‘USEC Privatization Act’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a
section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
SEC. 3002. PRODUCTION FACILITY.
Paragraph v. of section 11 (42 U.S.C. 2014 v.) is
amended by striking ‘‘or the construction and operation
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of a uranium enrichment production facility using Atomic
Vapor Laser Isotope Separation technology’’.
SEC. 3003. DEFINITIONS.
Section 1201 (42 U.S.C. 2297) is amended—
(1) in paragraph (4), by inserting before the pe-
riod the following: ‘‘and any successor corporation
established through privatization of the Corpora-
tion’’;
(2) by redesignating paragraphs (10) through
(13) as paragraphs (14) through (17), respectively,
and by inserting after paragraph (9) the following
new paragraphs:
‘‘(10) The term ‘low-level radioactive waste’ has
the meaning given such term in section 102(9) of
the Low-Level Radioactive Waste Policy Amend-
ments Act of 1985 (42 U.S.C. 2021b(9)).
‘‘(11) The term ‘mixed waste’ has the meaning
given such term in section 1004(41) of the Solid
Waste Disposal Act (42 U.S.C. 6903(41)).
‘‘(12) The term ‘privatization’ means the trans-
fer of ownership of the Corporation to private inves-
tors pursuant to chapter 25.
‘‘(13) The term ‘privatization date’ means the
date on which 100 percent of ownership of the Cor-
poration has been transferred to private investors.’’;
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(3) by inserting after paragraph (17) (as redes-
ignated) the following new paragraph:
‘‘(18) The term ‘transition date’ means July 1,
1993.’’; and
(4) by redesignating the unredesignated para-
graph (14) as paragraph (19).
SEC. 3004. EMPLOYEES OF THE CORPORATION.
(a) PARAGRAPH (2).—Paragraphs (1) and (2) of sec-
tion 1305(e) (42 U.S.C. 2297b–4(e)(1)(2)) are amended
to read as follows:
‘‘(1) IN GENERAL.—It is the purpose of this
subsection to ensure that the privatization of the
Corporation shall not result in any adverse effects
on the pension benefits of employees at facilities that
are operated, directly or under contract, in the per-
formance of the functions vested in the Corporation.
‘‘(2) APPLICABILITY OF EXISTING COLLECTIVE
BARGAINING
AGREEMENT.—The Corporation shall
abide by the terms of the collective bargaining agree-
ment in effect on the privatization date at each indi-
vidual facility.’’.
(b) PARAGRAPH
(4).—Paragraph (4) of section
1305(e) (42 U.S.C. 2297b–4(e)(4)) is amended—
(1) by striking ‘‘AND DETAILEES’’ in the head-
ing;
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(2) by striking the first sentence;
(3) in the second sentence, by inserting ‘‘from
other Federal employment’’ after ‘‘transfer to the
Corporation’’; and
(4) by striking the last sentence.
SEC. 3005. MARKETING AND CONTRACTING AUTHORITY.
(a) MARKETING AUTHORITY.—Section 1401(a) (42
U.S.C. 2297c(a)) is amended effective on the privatization
date (as defined in section 1201(13) of the Atomic Energy
Act of 1954)—
(1) by amending the subsection heading to read
‘‘MARKETING AUTHORITY.—’’; and
(2) by striking the first sentence.
(b) TRANSFER OF CONTRACTS.—Section 1401(b) (42
U.S.C. 2297c(b)) is amended—
(1) in paragraph (2)(B), by adding at the end
the following: ‘‘The privatization of the Corporation
shall not affect the terms of, or the rights or obliga-
tions of the parties to, any such power purchase con-
tract.’’; and
(2) by adding at the end the following:
‘‘(3) EFFECT OF TRANSFER.—
‘‘(A) As a result of the transfer pursuant
to paragraph (1), all rights, privileges, and ben-
efits under such contracts, agreements, and
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leases, including the right to amend, modify, ex-
tend, revise, or terminate any of such contracts,
agreements, or leases were irrevocably assigned
to the Corporation for its exclusive benefit.
‘‘(B) Notwithstanding the transfer pursu-
ant to paragraph (1), the United States shall
remain obligated to the parties to the contracts,
agreements, and leases transferred pursuant to
paragraph (1) for the performance of the obli-
gations of the United States thereunder during
the term thereof. The Corporation shall reim-
burse the United States for any amount paid by
the United States in respect of such obligations
arising after the privatization date to the extent
such amount is a legal and valid obligation of
the Corporation then due.
‘‘(C) After the privatization date, upon any
material amendment, modification, extension,
revision, replacement, or termination of any
contract, agreement, or lease transferred under
paragraph (1), the United States shall be re-
leased from further obligation under such con-
tract, agreement, or lease, except that such ac-
tion shall not release the United States from
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obligations arising under such contract, agree-
ment, or lease prior to such time.’’.
(c) PRICING.—Section 1402 (42 U.S.C. 2297c–1) is
amended to read as follows:
‘‘SEC. 1402. PRICING.
‘‘The Corporation shall establish prices for its prod-
ucts, materials, and services provided to customers on a
basis that will allow it to attain the normal business objec-
tives of a profitmaking corporation.’’.
(d) LEASING OF GASEOUS DIFFUSION FACILITIES OF
DEPARTMENT.—Effective on the privatization date (as de-
fined in section 1201(13) of the Atomic Energy Act of
1954), section 1403 (42 U.S.C. 2297c–2) is amended by
adding at the end the following:
‘‘(h) LOW-LEVEL RADIOACTIVE WASTE AND MIXED
WASTE.—
‘‘(1) RESPONSIBILITY
OF
THE
DEPARTMENT;
COSTS.—
‘‘(A) With respect to low-level radioactive
waste and mixed waste generated by the Cor-
poration as a result of the operation of the fa-
cilities and related property leased by the Cor-
poration pursuant to subsection (a) or as a re-
sult of treatment of such wastes at a location
other than the facilities and related property
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leased by the Corporation pursuant to sub-
section (a) the Department, at the request of
the Corporation, shall—
‘‘(i) accept for treatment or disposal
of all such wastes for which treatment or
disposal technologies and capacities exist,
whether within the Department or else-
where; and
‘‘(ii) accept for storage (or ultimately
treatment or disposal) all such wastes for
which treatment and disposal technologies
or capacities do not exist, pending develop-
ment of such technologies or availability of
such capacities for such wastes.
‘‘(B) All low-level wastes and mixed wastes
that the Department accepts for treatment,
storage, or disposal pursuant to subparagraph
(A) shall, for the purpose of any permits, li-
censes, authorizations, agreements, or orders
involving the Department and other Federal
agencies or State or local governments, be
deemed to be generated by the Department and
the Department shall handle such wastes in ac-
cordance with any such permits, licenses, au-
thorizations, agreements, or orders. The De-
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partment shall obtain any additional permits, li-
censes, or authorizations necessary to handle
such wastes, shall amend any such agreements
or orders as necessary to handle such wastes,
and shall handle such wastes in accordance
therewith.
‘‘(C) The Corporation shall reimburse the
Department for the treatment, storage, or dis-
posal of low-level radioactive waste or mixed
waste pursuant to subparagraph (A) in an
amount equal to the Department’s costs but in
no event greater than an amount equal to that
which would be charged by commercial, State,
regional, or interstate compact entities for
treatment, storage, or disposal of such waste.
‘‘(2) AGREEMENTS
WITH
OTHER
PERSONS.—
The Corporation may also enter into agreements for
the treatment, storage, or disposal of low-level radio-
active waste and mixed waste generated by the Cor-
poration as a result of the operation of the facilities
and related property leased by the Corporation pur-
suant to subsection (a) with any person other than
the Department that is authorized by applicable laws
and regulations to treat, store, or dispose of such
wastes.’’.
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(e) LIABILITIES.—
(1) Subsection (a) of section 1406 (42 U.S.C.
2297c–5(a)) is amended—
(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following:
‘‘As of the privatization date, all liabilities at-
tributable to the operation of the Corporation
from the transition date to the privatization
date shall be direct liabilities of the United
States.’’.
(2) Subsection (b) of section 1406 (42 U.S.C.
2297c–5(b)) is amended—
(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following:
‘‘As of the privatization date, any judgment en-
tered against the Corporation imposing liability
arising out of the operation of the Corporation
from the transition date to the privatization
date shall be considered a judgment against the
United States.’’.
(3) Subsection (d) of section 1406 (42 U.S.C.
2297c–5(d)) is amended—
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(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by striking ‘‘the transition date’’ and
inserting ‘‘the privatization date (or, in the
event the privatization date does not occur, the
transition date)’’.
(f) TRANSFER OF URANIUM.—Title II (42 U.S.C.
2297 et seq.) is amended by redesignating section 1408
as section 1409 and by inserting after section 1407 the
following:
‘‘SEC. 1408. TRANSFER OF URANIUM.
‘‘The Secretary may, before the privatization date,
transfer to the Corporation without charge raw uranium,
low-enriched uranium, and highly enriched uranium.’’.
SEC. 3006. PRIVATIZATION OF THE CORPORATION.
(a) ESTABLISHMENT OF PRIVATE CORPORATION.—
Chapter 25 (42 U.S.C. 2297d et seq.) is amended by add-
ing at the end the following new section:
‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—In order to facilitate pri-
vatization, the Corporation may provide for the es-
tablishment of a private corporation organized under
the laws of any of the several States. Such corpora-
tion shall have among its purposes the following:
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‘‘(ii) persons in accordance with, and
within the period of, an agreement for co-
operation arranged under section 123; or
‘‘(iii) persons otherwise authorized by
law to enter into such transactions;
‘‘(D) enter into contracts with persons li-
censed under section 53, 63, 103, or 104, for
as long as the corporation considers necessary
or desirable, to provide uranium or uranium en-
richment and related services;
‘‘(E) enter into contracts to provide ura-
nium or uranium enrichment and related serv-
ices in accordance with, and within the period
of, an agreement for cooperation arranged
under section 123 or as otherwise authorized by
law; and
‘‘(F) take any and all such other actions as
are permitted by the law of the jurisdiction of
incorporation of the corporation.
‘‘(3) TRANSFER OF ASSETS.—For purposes of
implementing the privatization, the Corporation may
transfer some or all of its assets and obligations to
the corporation established pursuant to this section,
including—
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‘‘(A) all of the Corporation’s assets, includ-
ing all contracts, agreements, and leases, in-
cluding all uranium enrichment contracts and
power purchase contracts;
‘‘(B) all funds in accounts of the Corpora-
tion held by the Treasury or on deposit with
any bank or other financial institution;
‘‘(C) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the power purchase con-
tracts covered by section 1401(b)(2)(B); and
‘‘(D) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the lease agreement be-
tween the Department and the Corporation exe-
cuted by the Department and the Corporation
pursuant to section 1403.
‘‘(4) MERGER OR CONSOLIDATION.—For pur-
poses of implementing the privatization, the Cor-
poration may merge or consolidate with the corpora-
tion established pursuant to subsection (a)(1) if such
action is contemplated by the plan for privatization
approved by the President under section 1502(b).
The Board shall have exclusive authority to approve
such merger or consolidation and to take all further
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actions necessary to consummate such merger or
consolidation, and no action by or in respect of
shareholders shall be required. The merger or con-
solidation shall be effected in accordance with, and
have the effects of a merger or consolidation under,
the laws of the jurisdiction of incorporation of the
surviving corporation, and all rights and benefits
provided under this title to the Corporation shall
apply to the surviving corporation as if it were the
Corporation.
‘‘(b) OSHA REQUIREMENTS.—For purposes of the
regulation of radiological and nonradiological hazards
under the Occupational Safety and Health Act of 1970,
the corporation established pursuant to subsection (a)(1)
shall be treated in the same manner as other employers
licensed by the Nuclear Regulatory Commission. Any
interagency agreement entered into between the Nuclear
Regulatory Commission and the Occupational Safety and
Health Administration governing the scope of their respec-
tive regulatory authorities shall apply to the corporation
as if the corporation were a Nuclear Regulatory Commis-
sion licensee.
‘‘(c) LEGAL STATUS OF PRIVATE CORPORATION.—
‘‘(1) NOT FEDERAL AGENCY.—The corporation
established pursuant to subsection (a)(1) shall not
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be an agency, instrumentality, or establishment of
the United States Government and shall not be a
Government corporation or Government-controlled
corporation.
‘‘(2) 
NO
RECOURSE
AGAINST
UNITED
STATES.—Obligations of the corporation established
pursuant to subsection (a)(1) shall not be obliga-
tions of, or guaranteed as to principal or interest by,
the Corporation or the United States, and the obli-
gations shall so plainly state.
‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac-
tion under section 1491 of title 28, United States
Code, shall be allowable against the United States
based on the actions of the corporation established
pursuant to subsection (a)(1).
‘‘(d) BOARD OF DIRECTOR’S ELECTION AFTER PUB-
LIC OFFERING.—In the event that the privatization is im-
plemented by means of a public offering, an election of
the members of the board of directors of the Corporation
by the shareholders shall be conducted before the end of
the 1-year period beginning the date shares are first of-
fered to the public pursuant to such public offering.
‘‘(e) ADEQUATE PROCEEDS.—The Secretary of En-
ergy shall not allow the privatization of the Corporation
unless before the sale date the Secretary determines that
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the estimated sum of the gross proceeds from the sale of
the Corporation will be an adequate amount.’’.
(b) OWNERSHIP
LIMITATIONS.—Chapter 25 (as
amended by subsection (a)) is amended by adding at the
end the following new section:
‘‘SEC. 1504. OWNERSHIP LIMITATIONS.
‘‘(a) SECURITIES LIMITATION.—In the event that the
privatization is implemented by means of a public offering,
during a period of 3 years beginning on the privatization
date, no person, directly or indirectly, may acquire or hold
securities representing more than 10 percent of the total
votes of all outstanding voting securities of the Corpora-
tion.
‘‘(b) APPLICATION.—Subsection (a) shall not apply—
‘‘(1) to any employee stock ownership plan of
the Corporation,
‘‘(2) to underwriting syndicates holding shares
for resale, or
‘‘(3) in the case of shares beneficially held for
others, to commercial banks, broker-dealers, clearing
corporations, or other nominees.
‘‘(c) No director, officer, or employee of the Corpora-
tion may acquire any securities, or any right to acquire
securities, of the Corporation—
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‘‘(1) in the public offering of securities of the
Corporation in the implementation of the privatiza-
tion,
‘‘(2) pursuant to any agreement, arrangement,
or understanding entered into before the privatiza-
tion date, or
‘‘(3) before the election of directors of the Cor-
poration under section 1503(d) on any terms more
favorable than those offered to the general public.’’.
(c) EXEMPTION FROM LIABILITY.—Chapter 25 (as
amended by subsection (b)) is amended by adding at the
end the following new section:
‘‘SEC. 1505. EXEMPTION FROM LIABILITY.
‘‘(a) IN GENERAL.—No director, officer, employee, or
agent of the Corporation shall be liable, for money dam-
ages or otherwise, to any party if, with respect to the sub-
ject matter of the action, suit, or proceeding, such person
was fulfilling a duty, in connection with any action taken
in connection with the privatization, which such person in
good faith reasonably believed to be required by law or
vested in such person.
‘‘(b) EXCEPTION.—The privatization shall be subject
to the Securities Act of 1933 and the Securities Exchange
Act of 1934. The exemption set forth in subsection (a)
shall not apply to claims arising under such Acts or under
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the Constitution or laws of any State, territory, or posses-
sion of the United States relating to transactions in secu-
rities, which claims are in connection with a public offer-
ing implementing the privatization.’’.
(d) RESOLUTION OF CERTAIN ISSUES.—Chapter 25
(as amended by subsection (c)) is amended by adding at
the end the following new section:
‘‘SEC. 1506. RESOLUTION OF CERTAIN ISSUES.
‘‘(a) CORPORATION ACTIONS.—Notwithstanding any
provision of any agreement to which the Corporation is
a party, the Corporation shall not be considered to be in
breach, default, or violation of any such agreement be-
cause of any provision of this chapter or any action the
Corporation is required to take under this chapter.
‘‘(b) RIGHT TO SUE WITHDRAWN.—The United
States hereby withdraws any stated or implied consent for
the United States, or any agent or officer of the United
States, to be sued by any person for any legal, equitable,
or other relief with respect to any claim arising out of,
or resulting from, acts or omissions under this chapter.’’.
(e) APPLICATION OF PRIVATIZATION PROCEEDS.—
Chapter 25 (as amended by subsection (d)) is amended
by adding at the end the following new section:
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‘‘(e) TRANSITIONAL RULE.—
‘‘(1) IN GENERAL.—In the case of a taxable
year which includes January 1, 1995—
‘‘(A) the amount taken into account as the
net capital gain under subsection (a) shall not
exceed the net capital gain determined by only
taking into account gains and losses properly
taken into account for the portion of the tax-
able year on or after January 1, 1995, and
‘‘(B) if the net capital gain for such year
exceeds the amount taken into account under
subsection (a), the rate of tax imposed by sec-
tion 1 on such excess shall not exceed 28 per-
cent.
‘‘(2) SPECIAL
RULES
FOR
PASS-THRU
ENTI-
TIES.—
‘‘(A) IN GENERAL.—In applying paragraph
(1) with respect to any pass-thru entity, the de-
termination of when gains and losses are prop-
erly taken into account shall be made at the en-
tity level.
‘‘(B) PASS-THRU ENTITY DEFINED.—For
purposes of subparagraph (A), the term ‘pass-
thru entity’ means—
‘‘(i) a regulated investment company,