I
106TH CONGRESS
1ST SESSION
H. R. 3221
To review, reform, and terminate unnecessary and inequitable Federal
payments, benefits, services, and tax advantages.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 4, 1999
Mr. HOEFFEL (for himself, Mr. CAMPBELL, Mr. WAXMAN, Mr. KASICH, Mr.
BONIOR, Mr. GEORGE
MILLER
of California, Mr. TOOMEY, Ms.
DELAURO, Mr. SANFORD, Mr. COYNE, Ms. PELOSI, Mr. STARK, Mr.
KUCINICH, Mr. ANDREWS, Mr. ACKERMAN, Mrs. LOWEY, Mr. BRADY of
Pennsylvania, Mr. TIERNEY, Mr. FATTAH, Mr. STUPAK, Mr. CAPUANO,
Mr. HOLT, Mr. WU, Mr. TRAFICANT, and Mr. SANDERS) introduced the
following bill; which was referred to the Committee on Government Re-
form, and in addition to the Committees on Ways and Means, Rules, 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 juris-
diction 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 1999’’.
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.
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).