I
105TH CONGRESS
1ST SESSION
H. R. 1235
To establish a Corporate Welfare Reduction Commission, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 8, 1997
Mr. DICKEY introduced the following bill; which was referred to the Commit-
tee on Government Reform and Oversight, and in addition to the Com-
mittee on Rules, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To establish a Corporate Welfare Reduction Commission,
and for other purposes.
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-
duction Act’’.
SEC. 2. CORPORATE WELFARE REDUCTION COMMISSION.
(a) ESTABLISHMENT.—There is established an inde-
pendent commission to be known as the ‘‘Corporate Wel-
fare Reduction Commission’’.
(b) PURPOSE.—The purpose of the Commission is to
recommend reductions in corporate subsidies to reduce the
Federal budget deficit in accordance with this Act.
(c) APPOINTMENT.—
(1) NUMBER OF MEMBERS.—The Commission
shall be composed of 7 members appointed by the
President.
(2) TIME OF APPOINTMENTS.—The President
shall appoint the members of the Commission not
later than the first day of the first session of the
first Congress beginning after the date of the enact-
ment of this Act, or as soon thereafter as is prac-
ticable.
(3) CHAIRPERSON.—The Commission shall des-
ignate a chairperson from among its members.
(d) TERMS.—Each member of the Commission shall
be appointed to serve for the life of the Commission.
(e) MEETINGS.—Each meeting of the Commission,
other than meetings in which classified information is to
be discussed, shall be open to the public.
(f) VACANCIES.—The President shall fill any vacancy
occurring in the Commission.
(g) PAY AND TRAVEL EXPENSES.—
(1) PAY.—Subject to paragraph (3), each mem-
ber of the Commission shall be paid at a rate not
to exceed the daily equivalent of the annual rate of
basic pay payable 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) TRAVEL EXPENSES.—Members of the Com-
mission shall receive travel expenses, including per
diem in lieu of subsistence, in accordance with sec-
tions 5702 and 5703 of title 5, United States Code.
(3) PROHIBITION OF COMPENSATION OF FED-
ERAL
EMPLOYEES.—Members of the Commission
who are full-time officers or employees of the United
States, or Members of Congress, may not receive ad-
ditional pay, allowances, or benefits by reason of
their service on the Commission.
(h) DIRECTOR OF STAFF.—
(1) IN GENERAL.—The Commission shall ap-
point a Director.
(2) PAY.—The Director shall be paid at a rate
not to exceed the rate of basic pay payable for level
IV of the Executive Schedule under section 5315 of
title 5, United States Code.
(i) STAFF.—
(1) IN GENERAL.—Subject to paragraphs (2)
and (3), the Director, with the approval of the Com-
mission, may appoint and fix the pay of additional
personnel to carry out the functions of the Commis-
sion.
(2) APPOINTMENT
AND
PAY.—The Director
may make such appointments without regard to the
provisions of title 5, United States Code, governing
appointments in the competitive service, and any
personnel so appointed may be paid without regard
to the provisions of chapter 51 and subchapter III
of chapter 53 of that title (relating to classification
and General Schedule pay rates), except that an in-
dividual so appointed may not receive pay in excess
of the annual rate of basic pay payable for level IV
of the Executive Schedule under section 5315 of title
5, United States Code.
(3) DETAILING FROM FEDERAL DEPARTMENTS
AND AGENCIES.—Upon the request of the Director,
the head of any Federal department or agency may
detail any of the personnel of that department or
agency to the Commission to assist the Commission
in carrying out its functions under this Act.
(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 AND PERSONAL PROPERTY.—The
Commission may lease space and acquire personal
property to the extent funds are available. To the
extent practicable, the Commission shall use suitable
real property available under the most recent inven-
tory of real property assets published by the Resolu-
tion Trust Corporation under section 21A(b)(11)(F)
of the Federal Home Loan Bank Act (12 U.S.C.
1441a(b)(11)(F)).
(k) FUNDING.—There are authorized to be appro-
priated to the Commission such funds as are necessary
to carry out its functions under this Act. Such funds shall
remain available until expended.
(l) TERMINATION.—The Commission shall terminate
on December 31 of the year of the first session of the
fourth Congress beginning after the date of the enactment
of this Act.
SEC. 3. PROCEDURE FOR MAKING RECOMMENDATIONS
FOR CORPORATE SUBSIDY REDUCTIONS.
(a) CRITERIA.—
(1) IN
GENERAL.—Not later than 6 months
after the first day of the first session of the first
Congress beginning after the date of the enactment
of this Act, the Commission shall publish in the Fed-
eral Register and transmit to the Congress a pre-
liminary draft of the criteria which the Commission
proposes should be used in making recommendations
for reductions in corporate subsidies under this Act.
Before the publication required by this paragraph,
the Commission shall provide an opportunity for
public comment on the proposed criteria for a period
of at least 30 days and shall hold a public hearing
on the proposed criteria. The Commission shall pro-
vide the public with appropriate notice of such op-
portunity to comment and of such hearing.
(2) FACTORS CONSIDERED.— In developing the
criteria, the Commission shall consider—
(A) the income categories of individuals af-
fected by any reduction in corporate subsidies;
(B) the number of individuals affected by
any such reduction; and
(C) the number, type, and size of busi-
nesses affected by any such reduction.
(3) PUBLICATION
AND
TRANSMISSION.—Not
later than the last day of the first session of the first
the Congress, to the President, and to the Commis-
sion a report containing a detailed analysis of the
Commission’s recommendations and selection proc-
ess.
SEC. 4. JOINT COMMITTEE ON CORPORATE SUBSIDY RE-
DUCTION.
(a) ESTABLISHMENT.—There is established a Joint
Committee on Corporate Subsidy Reduction.
(b) MEMBERSHIP.—
(1) IN GENERAL.—The Joint Committee shall
consist of 22 members as follows:
(A) 11 members of the House of Rep-
resentatives, to be appointed by the majority
leader of the House of Representatives, 6 from
the majority and 5 from the minority party.
(B) 11 members of the Senate, to be ap-
pointed by the majority leader of the Senate, 6
from the majority and 5 from the minority
party.
(2) MANNER OF APPOINTMENTS.—In making
appointments under paragraph (1), the majority
leader of the House of Representatives and the ma-
jority leader of the Senate shall give due consider-
ation to providing appropriate representation on the
Joint Committee to committees of the House and
Senate, respectively, which have jurisdiction over
matters relating to corporate subsidies.
(3) TIME
OF
APPOINTMENTS.—The appoint-
ments referred to in paragraph (1) shall be made
not later than 30 days after the first transmission
of recommendations under section 3(b)(1).
(c) VACANCIES.—Vacancies in the membership of the
Joint Committee shall not affect the power of the remain-
ing members to execute the functions of the Joint Com-
mittee and shall be filled in the same manner as in the
case of the original appointment.
(d) CHAIRPERSON AND VICE CHAIRPERSON.—The
Joint Committee shall elect a chairperson and vice chair-
person from among its members at the beginning of each
Congress in which the Joint Committee exists. The vice
chairperson shall be chosen from among the members of
that House of Congress other than the House of Congress
of which the chairperson is a member. The vice chair-
person shall act in the place and stead of the chairperson
in the absence of the chairperson.
(e) STAFF.—The Joint Committee is authorized to
appoint and fix the compensation of such professional and
clerical staff and such experts as it deems appropriate.
(f) LEGISLATIVE JURISDICTION AND POWERS.—
(1) PREPARATION AND INTRODUCTION OF LEG-
ISLATIVE
LANGUAGE
TO
IMPLEMENT
COMMISSION
RECOMMENDATIONS.—By not later than 3 months
after the beginning of the second session of each
Congress, until the Joint Committee terminates
under subsection (h), the Joint Committee shall pre-
pare, and the chairperson shall introduce, in the
House in which the chairperson is a Member, and
the vice chairperson shall introduce, in the House in
which the vice chairperson is a Member, a bill which,
if enacted, would have the effect of carrying out the
corporate 
subsidy 
reductions 
which 
are 
rec-
ommended by the Commission in the report submit-
ted under section 3(b) in the preceding session of
that Congress. Each bill under this paragraph shall
be introduced on the same day.
(2) LEGISLATIVE
JURISDICTION.—Bills intro-
duced under paragraph (1) and other bills and reso-
lutions which if enacted would accomplish the gov-
ernment-wide reduction or elimination of corporate
subsidies shall be referred to the Joint Committee.
The members of the Joint Committee who are Mem-
bers of the Senate shall from time to time report to
the Senate, and the members of the Joint Commit-
tee who are Members of the House of Representa-
tives shall from time to time report to the House of
Representatives, by bill or otherwise, their rec-
ommendations with respect to matters within the ju-
risdiction of their respective Houses which are re-
ferred to the Joint Committee.
(3) POWERS.—The Joint Committee, or any
duly authorized subcommittee thereof, is authorized
to sit and act at such places and times and to hold
such hearings as it deems appropriate. The Joint
Committee, or any duly authorized subcommittee
thereof, is authorized to require by subpoena (to be
issued under the signature of the chairperson or vice
chairperson) or otherwise the attendance of such
witnesses and the production of such books, papers,
and documents, to administer such oaths and affir-
mations, to take such testimony, to procure such
printing and binding, and to make such expenditures
as it deems advisable.
(g) HOUSE OF REPRESENTATIVES EXPENSES.—Not-
withstanding any law, rule, or other authority, there shall
be paid out of the applicable accounts of the House of
Representatives such sums as may be necessary for one-
half of the expenses of the Joint Committee. Such pay-
ments shall be made on vouchers signed by the House of
Representatives chairperson or vice chairperson of the
Joint Committee and approved in the manner directed by
the Committee on House Oversight of the House of Rep-
resentatives. Amounts made available under this para-
graph shall be expended in accordance with regulations
prescribed by the Committee on House Oversight of the
House of Representatives.
(h) TERMINATION.—The Joint Committee shall ter-
minate on December 31 of the year of the second session
of the fourth Congress beginning after the date of the en-
actment of this Act.
SEC. 5. CONGRESSIONAL CONSIDERATION OF COMMISSION
REPORT.
(a) AMENDMENTS IN ORDER.—It shall be in order
for the Joint Committee to consider amendments to any
bill which is referred to the Joint Committee.
(b) DISCHARGE OF CORPORATE SUBSIDY REDUC-
TION LEGISLATION.—If the Joint Committee has not re-
ported a bill introduced under section 4(f)(1) by the end
of the 3-month period beginning on the date of such intro-
duction, the Joint Committee shall be, at the end of such
period, discharged from further consideration of such bill,
and such bill shall be placed on the appropriate calendar
of the House involved.
(c) CONSIDERATION.—
(1) IN GENERAL.—On or after the third day
after the date on which the Joint Committee has re-
ported, or has been discharged (under subsection
(b)) from further consideration of, a bill introduced
under section 4(f)(1), it is in order (even though a
previous motion to the same effect has been dis-
agreed to) for any Member of the respective House
to move to proceed to the consideration of such bill
(but only on the day after the calendar day on which
such Member announces to the House concerned the
Member’s intention to do so). All points of order
against the bill (and against consideration of the
bill) are waived. The motion is highly privileged in
the House of Representatives and is privileged in the
Senate and is not debatable. The motion is not sub-
ject to amendment, or to a motion to postpone, or
to a motion to proceed to the consideration of other
business. A motion to reconsider the vote by which
the motion is agreed to or disagreed to shall not be
in order. If a motion to proceed to the consideration
of the bill is agreed to, the respective House shall
immediately proceed to consideration of the bill with-
out intervening motion, order, or other business, and
the bill shall remain the unfinished business of the
respective House until disposed of.
enterprise, if such payment, service, or bene-
fit—
(i) predominantly serves the pecuniary
interests of the specific entity or industry
rather than a clear and compelling public
interest;
(ii) provides an unfair competitive ad-
vantage to one entity within an industry or
market segment, or to one particular in-
dustry;
(iii) is provided without a reasonable
expectation that actions or activities under-
taken or performed in return for such pay-
ment, service, or benefit would result in a
return or benefit to the public at least as
great as the payment, service, or benefit;
or
(iv) has the effect of creating any
other inequitable Federal direct or indirect
benefit;
(B) includes spending subsidies (including
those for inland waterway operators) and free
or below-market-rate services which are pro-
vided by the Federal Government to or with re-
spect to any corporation or other profit-making
enterprise;
(C) does not include any subsidy, service,
or protection provided directly or indirectly by
the Federal Government to any Federal entity,
Federal agency, government-sponsored enter-
prise, or Government corporation (as defined in
section 9101 of title 31, United States Code),
but does include any subsidy within the mean-
ing of subparagraph (A) or (B) provided by any
such Federal entity, Federal agency, govern-
ment-sponsored enterprise, or Government cor-
poration to an entity or industry engaged in a
profitmaking enterprise; and
(D) does not include any tax benefit or ad-
vantage.
(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, the Student Loan Marketing
Association, the College Construction Loan Insur-
ance Association, and any of their affiliated or mem-
ber institutions.
(4) JOINT COMMITTEE.—The term ‘‘Joint Com-
mittee’’ means the Joint Committee on Corporate
Subsidy Reduction.
(5) SUBSIDY
REDUCTION
BILL.—The term
‘‘subsidy reduction bill’’ means a bill introduced
under section 4(f)(1) which the Joint Committee has
reported or with respect to which the Joint Commit-
tee has been discharged under section 5(b) from fur-
ther consideration.
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