[House Report 104-872]
[From the U.S. Government Publishing Office]



                                                 Union Calendar No. 475
104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2nd Session                                                    104-872
_______________________________________________________________________


 
 REPORT ON LEGISLATIVE AND OVERSIGHT ACTIVITY OF THE COMMITTEE ON WAYS 
                  AND MEANS DURING THE 104TH CONGRESS





 December 20, 1996.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed


                      COMMITTEE ON WAYS AND MEANS

   BILL ARCHER, Texas, Chairman
SAM M. GIBBONS, Florida              PHILIP M. CRANE, Illinois
CHARLES B. RANGEL, New York          BILL THOMAS, California
FORTNEY PETE STARK, California       E. CLAY SHAW, Jr., Florida
ANDY JACOBS, Jr., Indiana            NANCY L. JOHNSON, Connecticut
HAROLD E. FORD, Tennessee            JIM BUNNING, Kentucky
ROBERT T. MATSUI, California         AMO HOUGHTON, New York
BARBARA B. KENNELLY, Connecticut     WALLY HERGER, California
WILLIAM J. COYNE, Pennsylvania       JIM McCRERY, Louisiana
SANDER M. LEVIN, Michigan            MEL HANCOCK, Missouri
BENJAMIN L. CARDIN, Maryland         DAVE CAMP, Michigan
JIM McDERMOTT, Washington            JIM RAMSTAD, Minnesota
GERALD D. KLECZKA, Wisconsin         DICK ZIMMER, New Jersey
JOHN LEWIS, Georgia                  JIM NUSSLE, Iowa
L.F. PAYNE, Virginia                 SAM JOHNSON, Texas
RICHARD E. NEAL, Massachusetts       JENNIFER DUNN, Washington
MICHAEL R. McNULTY, New York         MAC COLLINS, Georgia
                                     ROB PORTMAN, Ohio
                                     JIMMY HAYES, Louisiana
                                     GREG LAUGHLIN, Texas
                                     PHILIP S. ENGLISH, Pennsylvania
                                     JOHN ENSIGN, Nevada
                                     JON CHRISTENSEN, Nebraska


                         LETTER OF TRANSMITTAL

                              ----------                              

                          House of Representatives,
                               Committee on Ways and Means,
                                 Washington, DC, December 20, 1996.
Hon. Robin H. Carle,
Clerk of the House of Representatives,
The Capitol, Washington DC.
    Dear Ms. Carle: I am herewith transmitting, pursuant to 
House Rule XI, clause 2(d), and House Resolution 546, the 
report of the Committee on Ways and Means on its legislative 
and oversight activities during the 104th Congress. With best 
personal regards,
            Sincerely,
                                             Bill Archer, Chairman.


                            C O N T E N T S

                              ----------                              
                                                                   Page
Transmittal Letter...............................................   iii
Foreword.........................................................   vii
I. Legislative Activity Review...................................     1
    A. Legislative Review of Budget Reconciliation: Balanced 
      Budget Act.................................................     1
    B. Legislative Review of Tax, Trust Fund, and Pension Issues.     5
    C. Legislative Review of Trade Issues........................    14
    D. Legislative Review of Health Issues.......................    29
    E. Legislative Review of Social Security Issues..............    34
    F. Legislative Review of Human Resources Issues..............    38
    G. Legislative Review of Debt Issues.........................    45
II. Oversight Activity Review....................................    46
    A. Oversight Agenda..........................................    46
    B. Actions taken and recommendations made with respect to 
      oversight plan.............................................    52
    C. Additional oversight activities, and any recommendations 
      or actions taken...........................................    63
Appendix I. Jurisdiction of the Committee on Ways and Means......    68
Appendix II. Historical Note.....................................    71
Appendix III. Statistical Review of the Activities of the 
  Committee on Ways and Means....................................    77
Appendix IV. Chairmen of the Committee on Ways and Means and 
  Membership of the Committee from the 1st through the 104th 
  Congresses.....................................................    83
                                FOREWORD

    Clause 1(d) of Rule XI of the Rules of the House, regarding 
the rules of procedure for committees, contains a requirement 
that each committee prepare a report at the conclusion of each 
Congress summarizing its activities. The 104th Congress added 
subsections on legislative and oversight activities, including 
a summary comparison of oversight plans and eventual 
recommendations and actions. The full text of the Rule follows:

          (d)(1) Each committee shall submit to the House not 
        later than January 2 of each odd-numbered year, a 
        report on the activities of that committee under this 
        rule and rule X during the Congress ending on January 3 
        of such year.
          (2) Such report shall include separate sections 
        summarizing the legislative and oversight activities of 
        the committee during that Congress.
          (3) The oversight section of such report shall 
        include a summary of the oversight plans submitted by 
        the committee pursuant to clause 2(d) of rule X, a 
        summary of the actions taken and recommendations made 
        with the respect to each such plan, and, summary of any 
        additional oversight activities undertaken by that 
        committee, and any recommendations made or actions 
        taken thereon.

    The jurisdiction of the Committee on Ways and Means during 
the 104th Congress is provided in Rule X, clause 1(s), as 
follows:

        (s) Committee on Ways and Means.
          (1) Customs, collection districts, and ports of entry 
        and delivery.
          (2) Reciprocal trade agreements.
          (3) Revenue measures generally.
          (4) Revenue measures relating to the insular 
        possessions.
          (5) The bonded debt of the United States (subject to 
        the last sentence of clause 4(g) of this rule).
          (6) The deposit of public moneys.
          (7) Transportation of dutiable goods.
          (8) Tax exempt foundations and charitable trusts.
          (9) National social security, except (A) health care 
        and facilities programs that are supported from general 
        revenues as opposed to payroll deductions and (B) work 
        incentive programs.

    The general oversight responsibilities of committees are 
set forth in clause 2 of Rule X. The 104th Congress also added 
the requirement in clause 2(d) of Rule X that each standing 
committee submit its oversight plans for each Congress. The 
text of the Rule, in pertinent part, follows:

    2. (a) In order to assist the House in--
          (1) its analysis, appraisal, and evaluation of (A) 
        the application, administration, execution, and 
        effectiveness of the laws enacted by the Congress, or 
        (B) conditions and circumstances which may indicate the 
        necessity or desirability of enacting new or additional 
        legislation, and
          (2) its formulation, consideration, and enactment of 
        such modifications of or changes in those laws, and of 
        such additional legislation, as may be necessary or 
        appropriate, the various standing committees shall have 
        oversight responsibilities as provided in paragraph 
        (b).
          (b)(1) Each standing committee (other than the 
        Committee on Appropriations and the Committee on the 
        Budget) shall review and study, on a continuing basis, 
        the application, administration, execution, and 
        effectiveness of those laws, or parts of laws, the 
        subject matter of which is within the jurisdiction of 
        that committee and the organization and operation of 
        the Federal agencies and entities having 
        responsibilities in or for the administration and 
        execution thereof, in order to determine whether such 
        laws and the programs thereunder are being implemented 
        and carried out in accordance with the intent of the 
        Congress and whether such programs should be continued, 
        curtailed, or eliminated. In addition, each such 
        committee shall review and study any conditions or 
        circumstances which may indicate the necessity or 
        desirability of enacting new or additional legislation 
        within the jurisdiction of that committee (whether or 
        not any bill or resolution has been introduced with 
        respect thereto) and shall on a continuing basis 
        undertake future research and forecasting on matters 
        within the jurisdiction of that committee. Each such 
        committee having more than twenty members shall 
        establish an oversight subcommittee, or require its 
        subcommittees, if any, to conduct oversight in the area 
        of their respective jurisdiction, to assist in carrying 
        out its responsibilities under this subparagraph. The 
        establishment of oversight subcommittees shall in no 
        way limit the responsibility of the subcommittees with 
        legislative jurisdiction from carrying out their 
        oversight responsibilities.
          * * * * * * *
          (c) Each standing committee of the House shall have 
        the function of reviewing and studying on a continuing 
        basis the impact or probable impact of tax policies 
        affecting subjects within its jurisdiction as described 
        in clauses 1 and 3.
          (d)(1) Not later than February 15 of the first 
        session of a Congress, each standing committee of the 
        House shall, in a meeting that is open to the public 
        and with a quorum present, adopt its oversight plans 
        for that Congress. Such plans shall be submitted 
        simultaneously to the Committee on Government Reform 
        and Oversight and to the Committee on House Oversight. 
        In developing such plans each committee shall, to the 
        maximum extent feasible--
                  (A) consult with other committees of the 
                House that have jurisdiction over the same or 
                related laws, programs, or agencies within its 
                jurisdiction, with the objective of ensuring 
                that such laws, programs, or agencies are 
                reviewed in the same Congress and that there is 
                a maximum of coordination between such 
                committees in the conduct of such reviews; and 
                such plans shall include an explanation of what 
                steps have been and will be taken to ensure 
                such coordination and cooperation;
                  (B) give priority consideration to including 
                in its plans the review of those laws, programs 
                or agencies operating under permanent budget 
                authority or permanent statutory authority; and
                  (C) have a review toward ensuring that all 
                significant laws, programs, or agencies within 
                its jurisdictions are subject to review at 
                least once every ten years.

    During the 104th Congress, the Committee on Ways and Means 
had five standing Subcommittees, as follows:
          Subcommittee on Trade;
          Subcommittee on Oversight;
          Subcommittee on Health;
          Subcommittee on Social Security; and
          Subcommittee on Human Resources.
    The membership of the five Subcommittees of the Committee 
on Ways and Means in the 104th Congress is as follows:

                         Subcommittee on Trade

    PHILIP M. CRANE, Illinois, 
             Chairman

CHARLES B. RANGEL, New York          BILL THOMAS, California
SAM M. GIBBONS, Florida              E. CLAY SHAW, Jr., Florida
ROBERT T. MATSUI, California         AMO HOUGHTON, New York
WILLIAM J. COYNE, Pennsylvania       MEL HANCOCK, Missouri
L.F. PAYNE, Virginia                 DAVE CAMP, Michigan
RICHARD E. NEAL, Massachusetts       JIM RAMSTAD, Minnesota
                                     DICK ZIMMER, New Jersey
                                     JENNIFER DUNN, Washington

                       Subcommittee on Oversight

  NANCY L. JOHNSON, Connecticut, 
             Chairman

ROBERT T. MATSUI, California         WALLY HERGER, California
SANDER M. LEVIN, Michigan \6\        MEL HANCOCK, Missouri
GERALD D. KLECZKA, Wisconsin \4\     SAM JOHNSON, Texas \2\
BENJAMIN L. CARDIN, Maryland         ROB PORTMAN, Ohio
JIM McDERMOTT, Washington            JIM RAMSTAD, Minnesota
MICHAEL R. McNULTY, New York \5\     DICK ZIMMER, New Jersey
                                     GREG LAUGHLIN, Texas \1\
                                     JIMMMY HAYES, Louisiana \3\

                         Subcommittee on Health

 BILL THOMAS, California, Chairman

FORTNEY PETE STARK, California       NANCY L. JOHNSON, Connecticut
BENJAMIN L. CARDIN, Maryland         JIM McCRERY, Louisiana
JIM McDERMOTT, Washington            JOHN ENSIGN, Nevada
GERALD D. KLECZKA, Wisconsin         JON CHRISTENSEN, Nebraska
JOHN LEWIS, Georgia                  PHILIP M. CRANE, Illinois
                                     AMO HOUGHTON, New York
                                     SAM JOHNSON, Texas

                    Subcommittee on Social Security

  JIM BUNNING, Kentucky, Chairman

ANDY JACOBS, Jr., Indiana            SAM JOHNSON, Texas
BARBARA B. KENNELLY, Connecticut     MAC COLLINS, Georgia
L.F. PAYNE, Virginia                 ROB PORTMAN, Ohio
RICHARD E. NEAL, Massachusetts       PHILIP S. ENGLISH, Pennsylvania
                                     JON CHRISTENSEN, Nebraska
                                     MEL HANCOCK, Missouri \2\
                                     GREG LAUGHLIN, Texas \1\

                    Subcommittee on Human Resources

   E. CLAY SHAW, Jr., Florida, 
             Chairman

HAROLD E. FORD, Tennessee            DAV CAMP, Michigan
BARBARA B. KENNELLY, Connecticut     JIM McCRERY, Louisiana
SANDER M. LEVIN, Michigan            MAC COLLINS, Georgia
CHARLES B. RANGEL, New York          PHILIP S. ENGLISH, Pennsylvania
FORTNEY PETE STARK, California       JIM NUSSLE, Iowa
                                     JENNIFER DUNN, Washington
                                     JOHN ENSIGN, Nevada

----------
\1\ As of July 10, 1995.
\2\ January 1, 1995 to July 10, 1995.
\3\ As of February 28, 1996.
\4\ As of April 19, 1996.
\5\ As of March 20, 1996.
\6\ January 1, 1995 to April 19, 1996.

    The Committee on Ways and Means submits its legislative and 
oversight activity review report for the 104th Congress 
pursuant to the above stated provisions of the Rules of the 
House. Section I of the report describes the Committees' 
legislative activities, divided into seven sections as follows: 
Legislative Review of Budget Reconciliation: Balanced Budget 
Act; Legislative Review of Tax, Trust Fund, and Pension Issues; 
Legislative Review of Trade Issues; Legislative Review of 
Health Issues; Legislative Review of Social Security Issues; 
Legislative Review of Human Resources Issues; and Legislative 
Review of Debt Issues.
    Section II of the report describes the Committees' 
oversight activities. It includes a copy of the Committee's 
Oversight Agenda, adopted in open session on February 8, 1995, 
along with a description of actions taken and recommendations 
made with respect to the oversight plan. The report then 
discusses additional Committee oversight activities, and any 
recommendations or actions taken as a result. Finally, the 
report includes three appendices with Committee information 
which has historically been included in a separate committee 
publication (see WMCP: 103-29). Appendix I is an expanded 
discussion of the Jurisdiction of the Committee on Ways and 
Means; Appendix II is a brief Historical Note on the origins of 
the Committee; Appendix III is a Statistical Review of the 
Activities of the Committee on Ways and Means; and Appendix IV 
is a listing of the Chairmen and Membership of the Committee 
from the 1st-104th Congresses.


104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2nd Session                                                    104-872
_______________________________________________________________________


 REPORT ON LEGISLATIVE AND OVERSIGHT ACTIVITY OF THE COMMITTEE ON WAYS 
                  AND MEANS DURING THE 104TH CONGRESS

                                _______
                                

 December 20, 1996.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

_______________________________________________________________________


    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                     I. Legislative Activity Review

A. Legislative Review of Budget Reconciliation: The Balanced Budget Act

    A major focus of the Committee's legislative activity in 
the 104th Congress was consideration of budget reconciliation 
legislation aimed at producing a balanced budget.
    On February 7, 8, and 9, 1995, the full Committee held a 
hearing on the President's Fiscal Year 1996 budget.
    On March 15, 1995, the Committee reported to the House, 
H.R. 1157, the ``Welfare Transformation Act of 1995'' (H. Rept. 
104-81, Part I). On March 24, 1995, H.R. 4, the ``Personal 
Responsibility Act,'' passed the House, with an amendment 
incorporating elements of H.R. 1157.
    On May 18, 1995, the House approved H. Con. Res. 67, 
setting forth the Congressional budget for the United States 
Government for fiscal years 1996, 1997, 1998, 1999, 2000, 2001, 
and 2002, and the House agreed to the conference report on H. 
Con. Res. 67 on June 29, 1995.
    On September 13, 1995, the Committee ordered reported to 
the Committee on the Budget--its Budget Reconciliation 
Recommendations--Trade Items, as amended. On September 19, 
1995, the Committee ordered reported to the Committee on the 
Budget its Budget Reconciliation Recommendations, Revenue 
Items, as amended. On September 21, 1995, the Committee ordered 
reported to the Committee on the Budget its Budget 
Reconciliation Recommendations-Trade Adjustment Assistance, as 
amended.
    On October 11, 1995, the Committee ordered reported to the 
House, H.R. 2425 the ``Medicare Preservation Act,'' as amended.
    On October 17, 1995, the Committee on the Budget reported 
to the House, H.R. 2491, the ``Balanced Budget Act of 1995,'' 
which contained the recommendations of the Committee on Ways 
and Means, and the other House committees.
    On October 26, 1995, H.R. 2491 passed the House, with an 
amendment in the nature of a substitute in the form of H.R. 
2517, which incorporated by reference provisions of H.R. 4 and 
H.R. 2425, On November 17, 1995, the House agreed to the 
conference report on H.R. 2491. On November 20, 1995, the House 
agreed to a Senate amendment to H.R. 2491 (as a result of the 
application of the Byrd Rule in the Senate).
    On December 6, 1995, the bill was vetoed by the President.
    The major revenue provisions of H.R. 2491, the Balanced 
Budget Act of 1995, as approved by the Congress, were 
originally in H.R. 1215, the Contract With America Tax Relief 
Act of 1995: a $500 per child tax credit for families with 
qualifying children under age 18; marriage penalty tax relief 
for two-earner couples; establishment of American Dream 
Individual Retirement Accounts (IRAs) permitting non-deductible 
contributions of $2,000 per person per year to accounts from 
which qualifying distributions would be tax-free; an increase 
to $2,000 in deductible IRA contributions for each spouse 
(including a homemaker not working outside the home) and other 
changes to the rules for deductible IRAs; tax incentives for 
private long-term care insurance; an exclusion from income of 
life insurance benefits received by terminally or chronically 
ill individuals; capital gains tax relief including a 50 
percent capital gains deduction for individuals, indexation of 
the basis of capital assets for individuals, a 28 percent 
alternative tax rate for corporate capital gains, and a 
provision allowing homeowners selling at a loss a capital loss 
deduction; a deduction for the cost of leasehold improvements 
disposed of at the end of a lease term; reform of the corporate 
alternative minimum tax; an increase of the estate tax 
exemption to $750,000 with future inflation indexing of that 
amount and several other estate tax thresholds; an increase to 
$25,000 in the amount small businesses are eligible to expense 
(i.e., deduct in the year of purchase); clarification of the 
eligibility for a home office deduction; a $5,000 adoption 
expense tax credit; and a $1,000 deduction for home care of the 
elderly.
    Other revenue provisions in the bill included a $2,500 
student loan interest deduction; extensions of expiring tax 
provisions (work opportunity tax credit, employer-provided 
education assistance, research and experimentation tax credit, 
orphan drug tax credit, deduction for contributions of 
appreciated stock to private foundations, commercial aviation 
fuel tax exemption, Airport and Airway Trust Fund excise taxes, 
Internal Revenue Service (IRS) user fees, Superfund and oil 
spill liability taxes, excise tax refund authority for alcohol 
fuels blenders, nonconventional fuels tax credit, Federal 
Unemployment Tax Act (FUTA) exemption for alien agricultural 
workers, and disclosure of return information to the Department 
of Veterans Affairs); sunset of the low income housing tax 
credit; an estate tax exemption for qualified family-owned 
business interests; an estate tax exclusion for property 
donated subject to a conservation easement; a change to the 
involuntary conversion rules for Presidentially-declared 
disaster areas; establishment of medical savings accounts; the 
Taxpayer Bill of Rights 2; intermediate sanctions for tax-
exempt organizations; tax-exempt status for common investment 
funds; and tax simplification provisions relating to 
individuals, pensions, partnerships, international taxation, 
estate taxes, excise taxes, tax administration, and other 
matters.
    The bill also contained several corporate income tax 
changes: reform of the tax treatment of certain corporate stock 
redemptions; a requirement of corporate tax shelter reporting; 
disallowance of the interest deduction with respect to 
corporate-owned life insurance policy loans; phase-out of 
preferential tax deferral for certain large farm corporations; 
phased-in repeal of the section 936 possessions tax credit; 
reform of the income forecast method of accounting; withdrawals 
of excess pension plan assets; modification of the exclusion 
for damages received on account of personal injuries; tax 
reporting for payments to attorneys; a provision to address 
tax-motivated expatriation; repeal of the business exclusion 
for energy subsidies provided by public utilities; modification 
to the basis adjustment and other rules under section 1033 
(relating to involuntary conversions); disallowance of the 
rollover of gain on sale of a home to the extent of previous 
depreciation; limit tax-free rollovers to replacement homes 
within the United States; repeal of the exemption for gambling 
proceeds exceeding $5,000 from bingo and keno; repeal of the 
tax credit for contributions to special Community Development 
Corporations; repeal of advance refunds of diesel fuel tax for 
diesel cars and light trucks; application of the failure to pay 
penalty to substitute returns; election to convert scholarship 
funding corporations into taxable corporations; a look-through 
rule for purposes of characterizing certain subpart F insurance 
income as unrelated business taxable income; repeal of the 50 
percent interest exclusion for loans to Employee Stock 
Ownership Plans (ESOPs); modification of the ozone depleting 
chemicals tax; modification of the two-county tax-exempt bond 
rule; tax-exempt bonds for the Alaska Power Administration; 
modification of the treatment of foreign trusts; establishment 
of Financial Asset Securitization Investment Trusts (FASITs); 
tax-free treatment of contributions in aid of construction; 3-
year amortization for intrastate operating rights of truckers; 
modification of the treatment of certain life insurance company 
income; clarification of the tax status of newspaper carriers 
and other worker classification issues; tax-free conversion of 
common trust funds into mutual funds; elimination of interest 
allocation exception for certain nonfinancial corporations; 
modification of the depreciation for small motor fuel/
convenience store outlets; repeal of the special bad debt 
deduction rules that apply to thrift institutions; phase-out 
and extension of the luxury automobile excise tax; and several 
Earned Income Credit (EIC) reforms to improve compliance and 
target the credit to lower income working families and 
individuals.
    The major Medicare provisions included in H.R. 2425, the 
``Medicare Preservation Act of 1995,'' were incorporated with 
modifications into title VIII of H.R. 2491.
    A MedicarePlus program would be established to increase the 
availability of privately offered Medicare plan choices to 
beneficiaries. Changes would be proposed in standards relating 
to premiums, payments, quality and other elements of 
contracting for private health plans participating as Medicare 
risk contractors. Organizational and financial requirements 
would be established for a new risk contracting entity known as 
provider-sponsored organizations.
    Processes would be established for development of uniform 
data elements for MedicarePlus plans and the fee-for-service 
systems. Modifications would be made to rules concerning 
duplication and coordination of Medicare related plans, other 
than Medigap. Special rules would be established for Medicare 
Medical Savings Accounts. A new Medicare Payment Review 
Commission was established, consolidating and refocusing two 
existing commissions.
    Provisions designed to combat health care fraud and abuse 
would be established including special funding for coordinated 
Federal, State and local programs; new criminal code 
requirements; increased civil monetary penalties, and a 
beneficiary incentive program for reporting fraudulent 
billings. Regulatory relief would be provided for certain 
compensation arrangements of providers, and for shared 
services. Modifications would be made to payments for graduate 
medical education under Medicare. Changes would be made to 
scheduled updates in payments to hospitals, disproportionate 
share payments, capital payments, bad debt payments, and 
certain exempt hospital payments. An interim and future system 
of paying for skilled nursing facility services based on 
episodes of care would be established. Future updates in 
hospice service payments would be set.
    Physician payment rules would be changed to establish a 
single conversion factor and to replace the update default 
formula. The formula-driven overpayment for certain outpatient 
services would be eliminated. Changes would be made in payment 
updates for clinical laboratory services, durable medical 
equipment, ambulance services, and ambulatory surgery center 
services.
    The Part B premium would be kept at 31.5 percent of program 
costs and an income-related reduction in Federal subsidies of 
the Part B premium would be established. A new payment method 
would be established for home-health services. A failsafe 
budget mechanism would be created to manage annual growth in 
Medicare expenditures.
    A package of provisions relating to rural areas would 
establish a new, rural-limited service hospital program; 
special rules for access to emergency services; reinstitution 
of Medicare Dependent Hospitals; special rules on area wage 
adjustments and classification of rural referral centers; 
additional payments in provider shortage areas; expanded nurses 
aids training; and payments to physician assistants and nurse 
practitioners.
    A new Title XXII would be added to the Social Security Act 
creating a trust fund to aid in financing graduate medical 
education. Lastly, clinical laboratories in a physician's 
office would be exempted from Clinical Laboratory Improvement 
Amendments (CLIA) requirements.
    The major human resource provisions contained in title XII 
of H.R. 2491 incorporated most, but not all, of the provisions 
included in the conference report on H.R. 4 (see additional 
description under ``Legislative Review of Human Resources 
Issues'' below). The welfare reform provisions of H.R. 2491 
would provide for the creation of broad cash welfare, child 
care and child protection block grants, while providing special 
assistance to States with growing populations or experiencing 
high unemployment. More than 30 programs, including the 
Nation's main cash welfare program, Aid to Families with 
Dependent Children, would be replaced with flexible block 
grants designed to protect children and provide temporary 
assistance permitting families to become free from long-term 
dependence on government benefits.
    Under the legislation, welfare would be converted into a 
work program by: requiring participation in work activities 
(generally either through work, job taining or vocational 
education) within 2 years for parents on welfare; placing a 5-
year limit on receipt of Federal cash welfare benefits, with 
limited exceptions; and requiring States to move specific 
percentages (rising to 50 percent of all families on welfare in 
2002) of welfare caseloads into work activities.
    The legislation would promote State efforts designed to 
reduce illegitimacy. States would be given the option of 
limiting cash payments to minor unwed mothers, of preventing an 
increase in payments to families already on welfare that have 
additional babies, and of developing other methods of reducing 
out-of-wedlock births that, if successful, could result in 
States' obtaining additional Federal incentive funds.
    In addition, the legislation included changes to the 
program intended to improve compliance and target the EIC to 
lower-income working families and individuals.
    The legislation would also: make changes in National and 
State child support enforcement systems; reform the children's 
Supplemental Security Income program to limit abuse and focus 
benefits on severely disabled children; provide added child 
care funding to allow families to leave welfare for work; 
reform nutrition programs and allow 7 States to receive 
nutrition block grants; reserve benefits for citizens and 
noncitizens who had worked, were veterans of the U.S. armed 
forces, or were political refugees; reform the food stamp 
program, curb fraud and require work; and, finally, achieve an 
estimated $58 billion in savings over 7 years. Nonetheless, the 
legislation anticipated increased Federal spending on affected 
programs, rising from about $200 billion to about $300 billion 
between 1996 and 2002.
    The trade provisions of H.R. 2491 included reauthorization 
and extension of the Generalized System of Preferences program 
through December 31, 1997.
    The debt limit provisions of the Balanced Budget Act 
contained an increase in the statutory debt limit from $4.9 
trillion to $5.5 trillion.

      B. Legislative Review of Tax, Trust Fund, and Pension Issues

             1. Tax Provisions in the Contract with America

    On January 4, 1995, H.R. 6, the ``American Dream 
Restoration Act,'' was introduced by Reps. Crane, Nussle, and 
Salmon; H.R. 8, the ``Senior Citizens' Equity Act,'' was 
introduced by Reps. Bunning, Hastert, Kelly, and Thurman; H.R. 
9, the ``Job Creation and Wage Enhancement Act,'' was 
introduced by Committee Chairman Archer and Reps. DeLay, 
Saxton, Smith, and Tauzin; and H.R. 11, the ``Family 
Reinforcement Act'', was introduced by Reps. Vucanovich, 
Thomas, and Weller.
    On January 5, 10, 11, 12, 17, 18, 19, 24, 25, 26, and 31, 
and February 1, 1995, the Full Committee held hearings on the 
tax provisions contained in H.R. 6, H.R. 8, H.R. 9, and H.R. 
11. On January 20, 1995, the Subcommittee on Health held a 
hearing on tax incentives for long-term care insurance 
contained in H.R. 8.
    On March 3, 1995, H.R. 1121, the ``Tax Technical 
Corrections Act of 1995,'' was introduced by Committee Chairman 
Archer and Rep. Gibbons.
    On March 13, 1995, H.R. 1215, the ``Contract with America 
Tax Relief Act of 1995,'' was introduced by Committee Chairman 
Archer. The bill included provisions derived from the revenue 
provisions in H.R. 6, H.R. 8, H.R. 9, and H.R. 11, as well as 
H.R. 1121 and certain other revenue provisions.
    On March 21, 1995, the Committee reported to the House H.R. 
1215, without amendment (H. Rept. 104-84). Additional titles 
were added to the bill as part of the adoption of the rule, and 
H.R. 1215 passed the House on April 5, 1995. There was no 
Senate action on H.R. 1215. Many provisions in the ``Contract 
with America Tax Relief Act'' were included in the Balanced 
Budget Act of 1995 (H.R. 2491), the Health Insurance 
Portability and Accountability Act of 1996 (H.R. 3103), and the 
Small Business Job Protection Act of 1996 (H.R. 3448). For a 
discussion of the Balanced Budget Act of 1995, see section 
I.A., above. For a discussion of the Health Insurance 
Portability and Accountability Act of 1996, see part [I.D.2.], 
below. For a discussion of the Small Business Job Protection 
Act of 1996, see part [I.B.11.], below.
    In summary, H.R. 1215, the ``Contract With America Tax 
Relief Act of 1995,'' as passed by the House, included the 
following revenue provisions: a $500 per child tax credit for 
families with qualifying children under age 18; marriage 
penalty tax relief for two-earner couples; establishment of 
American Dream Savings Accounts permitting non-deductible 
contributions of $2,000 per person per year to accounts from 
which qualifying distributions would be tax-free; an increase 
to $2,000 in deductible IRA contributions for each spouse 
(including a homemaker not working outside the home); repeal of 
the 1993 income tax increase on Social Security benefits; tax 
incentives for private long-term care insurance; an exclusion 
from income of life insurance benefits received by terminally 
or chronically ill individuals; capital gains tax relief 
including a 50 percent capital gains deduction for individuals, 
indexation of the basis of capital assets for individuals, a 25 
percent alternative tax for corporate capital gains, and a 
provision allowing homeowners selling at a loss a capital loss 
deduction; a neutral cost recovery system for depreciable 
assets; a deduction for the cost of leasehold improvements 
disposed of at the end of a lease term; repeal of the corporate 
alternative minimum tax; the potential for individual taxpayers 
to designate up to 10 percent of their tax liability to a 
Public Debt Reduction Trust Fund; an increase in the estate tax 
exemption to $750,000 with future inflation indexing of that 
amount and several other estate tax thresholds; an increase to 
$35,000 in the amount small businesses are eligible to expense; 
clarification of the eligibility for a home office deduction; a 
$5,000 adoption expense tax credit; a $500 tax credit for home 
care of the elderly; and technical corrections to various prior 
tax acts. The bill also included an increase to $30,000 in the 
Social Security earnings limit.

                            2. Expatriation

    On February 6, 1995, the President submitted his FY 1996 
budget proposal. This proposal included a provision to amend 
the tax treatment of U.S. taxpayers that renounce their U.S. 
citizenship or residency.
    On March 24, 1995, the Senate passed H.R. 831 (see below) 
which included an amendment by the Senate that modified the 
current tax code rules applicable to U.S. citizens that 
relinquish their U.S. citizenship. The provision was 
substantively the same as the expatriation provision contained 
in the President's FY 1996 budget. The conference report on 
H.R. 831 did not contain an expatriation provision. Instead, 
the conference report directed the staff of the Joint Committee 
on Taxation to study the issues presented by proposals to 
modify the taxation of expatriation and submit a report on this 
study to the Congressional tax-writing committees by June 1, 
1995.
    On March 27, 1995, the Subcommittee on Oversight held a 
public hearing on issues relating to taxation of U.S. citizens 
who relinquish their citizenship and long-term resident aliens 
who terminate their U.S. residency.
    On June 1, 1995, the staff of the Joint Committee on 
Taxation submitted its expatriation report entitled ``Issues 
Presented by Proposals to Modify the Tax Treatment of 
Expatriation.'' (JCS-17-95)
    On June 9, 1995, Committee Chairman Archer and Oversight 
Subcommittee Chairman Johnson introduced H.R. 1812, the 
``Expatriation Tax Act of 1995.'' H.R. 1812 revised the income, 
estate, and gift tax rules applicable to individuals who 
renounce their U.S. citizenship and for other purposes. On June 
16, 1995, the Committee reported to the House H.R. 1812, as 
amended (H. Rept. 104-145).
    On September 19, 1995, the Committee ordered reported to 
the Committee on the Budget its Budget Reconciliation 
Recommendations-Revenue Items (see part I.A., above). Among the 
revenue items were the provisions in H.R. 1812. The Balanced 
Budget Act of 1995, H.R. 2491 (see part I.A., above), contained 
a provision that was very similar to the one contained in H.R. 
1812.
    On March 25, 1996, the Committee reported to the House H.R. 
3101 as amended (H. Rept. 104-496, Part 1) (see Legislative 
Review of Health Issues, below), which included an expatriation 
provision, and the conference report on H.R. 3103 included a 
substantially similar expatriation provision (H. Rept. 104-
736). In summary, the expatriation provision in H.R. 3103 
strengthens and expands the current tax code rules applicable 
to expatriation, requires individuals who renounce their U.S. 
citizenship to file certain information with the IRS, and 
requires Treasury to submit within 90 days of enactment a 
report to the Committee on Ways and Means and the Senate 
Committee on Finance about tax compliance by U.S. taxpayers 
living overseas.

 3. Extension of health insurance deduction for the self-employed and 
          repeal of section 1071 of the Internal Revenue Code

    On January 17, 1995, Committee Chairman Archer announced 
that the Committee would immediately review the operation of 
section 1071 of the Internal Revenue Code to explore possible 
legislative changes to section 1071, including the possibility 
of repeal. On January 27, 1995, the Subcommittee on Oversight 
held a hearing to examine the operation and administration of 
section 1071.
    On February 6, 1995, H.R. 831, a bill to amend the Internal 
Revenue Code of 1986 to permanently extend the deduction for 
the health insurance costs of self-employed individuals, to 
repeal the provision permitting nonrecognition of gain on sales 
and exchanges effectuating policies of the Federal 
Communications Commission, and for other purposes, was 
introduced by Committee Chairman Archer, and Reps. Matsui, 
Thomas, and Nancy Johnson. On February 14, 1995, the Committee 
reported to the House H.R. 831, as amended (H. Rept. 104-32).
    On February 21, 1995, the House passed H.R. 831. On March 
24, 1995, the Senate then passed H.R. 831 as amended.
    On March 30, 1995, the House approved the conference report 
on H.R. 831. On April 3, 1995, the Senate also approved the 
conference report on H.R. 831. On April 11, 1995, the President 
signed the bill into law (P.L. 104-7).
    In summary, H.R. 831, as signed into law, increased and 
made permanent the health care deduction for the self-employed, 
repealed the provision allowing tax-free exchanges of certain 
broadcast properties certified by the Federal Communications 
Commission (FCC), denied the earned income credit to 
individuals having ``disqualified income'' (i.e., interest, 
dividends, net rent and royalty income) in excess of $2,350, 
extended special rules for certain group health plans, and 
required a Joint Committee on Taxation study of certain 
expatriation proposals by June 1, 1995.

                    4. Budget reconciliation in 1995

    For a discussion of the tax provisions included in the 
Balanced Budget Act of 1995 (H.R. 2491) see I.A., above.

                      5. Thrift bad debt recapture

    On October 18, 1995, H.R. 2494, the ``Thrift Charter 
Conversion Tax Act of 1995,'' was introduced by Committee 
Chairman Archer and Committee on Banking and Financial Services 
Chairman Leach. H.R. 2494 would repeal the special bad debt 
deduction rules that apply to thrift institutions but would 
have required only partial recapture of such deductions.
    On October 26, 1995, the Committee held a hearing on H.R. 
2494. On November 7, 1995, the Committee reported to the House 
H.R. 2494, as amended (H. Rept. 104-324).
    The provisions of H.R. 2494 were incorporated into the 
conference report on H.R. 2491, the ``Balanced Budget Act of 
1995'' (see part I.A., above) and later into H.R. 3103, the 
``Health Insurance Portability and Accountability Act of 1996'' 
(see part Legislative Review of Health Issues, below) as passed 
by the House, and ultimately into the conference report on H.R. 
3448, the ``Small Business Job Protection Act of 1996'' (see 
below) (H. Rept. 104-737).

 6. Tax Relief for Members of the Armed Forces in the former Yugoslavia

    On December 14, 1995, H.R. 2778, a bill to provide that 
members of the Armed Forces performing services for the 
peacekeeping effort in the Republic of Bosnia and Herzegovina 
shall be entitled to certain tax benefits in the same manner as 
if such services were performed in a combat zone, was 
introduced by Mr. Bunning.
    On February 29, 1996, the Committee reported to the House 
H.R. 2778, as amended (H. Rept. 104-465). H.R. 2778 was passed 
by the House under suspension of the rules on March 5, 1996. On 
March 6, 1996, the Senate passed H.R. 2778, and on March 20, 
1996, the President signed the bill into law (P.L. 104-117).

                           7. Adoption Credit

    On January 18, 1995, the Committee held a hearing on H.R. 
11, the ``Family Reinforcement Act,'' which included a maximum 
$5,000 refundable tax credit for adoption expenses and included 
a similar provision in H.R. 1215, the ``Contract with America 
Tax Relief Act'' (see above). A similar credit was included in 
H.R. 2491, the ``Balanced Budget Act of 1995'' (see part I.A., 
above).
    On April 23, 1996, H.R. 3286, the ``Adoption Promotion and 
Stability Act of 1996,'' was introduced by Rep. Molinari. On 
May 3, 1996, the Committee reported to the House H.R. 3286, as 
amended (H. Rept. 104-542, Part II). On May 10, 1996, H.R. 
3286, as amended, passed the House. On June 13, 1996, H.R. 3286 
was reported by the Senate Finance Committee, as amended, and 
on June 24, 1996, the bill was reported by the Senate Committee 
on Indian Affairs. The Senate did not take any further action 
on H.R. 3286.
    The conference report on H.R. 3448, the ``Small Business 
Job Protection Act'' (see below) included provisions of the 
Adoption Promotion and Stability Act. In summary, the 
conference report provides a nonrefundable tax credit of up to 
$5,000 for qualified adoption expenses, effective January 1, 
1997. A maximum credit of $6,000 may be claimed by taxpayers 
adopting U.S. children with special needs. A $5,000 income tax 
exclusion ($6,000 in the case of special needs adoptions) is 
also provided for employees who receive employer-provided 
adoption assistance. The credit for nonspecial needs adoptions 
and the exclusion for employer-provided adoption assistance 
sunsets after December 31, 2001.

       8. Tax Provisions in the Health Insurance Portability and 
                           Accountability Act

    See description of the tax provisions included in H.R. 3103 
under Legislative Review of Health issues, below.

                      9. Taxpayer Bill of Rights 2

    On March 24, 1995, the Subcommittee on Oversight held a 
hearing to explore the development of a Taxpayer Bill of Rights 
2 and consider additional taxpayer safeguards that may be 
appropriate to provide citizens with more evenhanded treatment 
in their dealings with the IRS. In addition, the Subcommittee 
staff reviewed numerous communications from taxpayers which 
described their experiences with the IRS and reinforced the 
position that a Taxpayer Bill of Rights 2 was needed.
    On September 12, 1995, the Subcommittee on Oversight 
unanimously approved a report (WMCP: 104-8) transmitting its 
recommendations for legislative and administrative changes to 
achieve such taxpayer safeguards. This report formed the 
foundation for H.R. 2337, the Taxpayer Bill of Rights 2, which 
was introduced on September 14, 1995, by Subcommittee on 
Oversight Chairman Nancy Johnson and Ranking Democrat Member 
Robert Matsui.
    On September 19, 1995, the Committee ordered reported to 
the Committee on the Budget its Budget Reconciliation 
Recommendations-Revenue Items (see part I.A., above). Among the 
revenue items were provisions in H.R. 2337, as amended. H.R. 
2491, the ``Balanced Budget Act of 1995,'' (see part I.A, 
above), contained a smaller package of provisions designed to 
conform with the ``Byrd Rule.''
    On March 28, 1996, the Committee reported to the House H.R. 
2337, as amended (H. Rept. 104-506).
    On April 16, 1996, the bill passed the House under 
suspension of the rules. On July 11, 1996, H.R. 2337 was 
adopted by the Senate, and the President signed the bill into 
law on July 30, 1996 (P.L. 104-168).
    In summary, H.R. 2337 included provisions related to the 
establishment of the position of Taxpayer Advocate within the 
IRS and expansion of the authority of the Taxpayer Advocate to 
intervene on behalf of taxpayers; modifications to installment 
agreement provisions; expansion of the IRS's authority to abate 
interest; judicial review of IRS failure to abate interest; 
extension of the interest-free period for payment of tax after 
notice and demand; studies of joint and several liability for 
married persons filing joint returns and other joint return-
related issues; disclosure of collection activities with 
respect to joint returns; modifications to lien and levy 
provisions and offers-in-compromise; civil damages for 
fraudulent filing of information returns; requirement to 
conduct reasonable investigations of disputed information 
returns; awards of costs and attorney fees; modifications to 
recovery of civil damages for unauthorized collection actions; 
modification to penalty for failure to collect and pay over 
tax; modification of rules relating to summonses; safeguards 
relating to designated summonses; relief from retroactive 
application of Department of the Treasury regulations; and a 
number of miscellaneous provisions. Also, the bill provided for 
intermediate sanctions in cases of excess benefits to insiders 
of certain tax-exempt organizations.

             10. Repeal of 1993 Tax on Transportation Fuels

    On May 8, 1996, the Committee held a hearing on the effects 
of the 4.3 cents per gallon tax on transportation fuels imposed 
by the ``Omnibus Budget Reconciliation Act of 1993'' (OBRA 93), 
and dedicated to the General Fund of the Treasury. H.R. 3415, a 
bill to amend the Internal Revenue Code of 1986 to repeal 
through December 31, 1996, the 4.3 cents increase on 
transportation motor fuels, was introduced by Rep. Seastrand on 
May 8, 1996. On May 15, 1996, the Committee reported to the 
House H.R. 3415, without amendment, (H. Rept. 104-576, Part I). 
On May 21, 1996, H.R. 3415 passed the House, as amended. The 
Senate took no action, other than referring H.R. 3415 to the 
Committee on Finance.

                 11. Small Business Job Protection Act

    On May 14, 1996, H.R. 3448, the ``Small Business Job 
Protection Act of 1996,'' was introduced by Committee Chairman 
Archer. On May 20, 1996, the Committee reported to the House 
H.R. 3448 as amended (H. Rept. 104-586). On May 22, 1996, H.R. 
3448 passed the House, as amended. Pursuant to the rule adopted 
on May 21, 1996, in the engrossment of H.R. 3448, the text of 
H.R. 1227 (which would increase the minimum wage and make other 
changes), as passed by the House on May 23, 1996, was appended 
to H.R. 3448.
    On June 18, 1996, the Senate Committee on Finance reported 
H.R. 3448, as amended. On July 9, 1996, the bill, as amended, 
passed the Senate.
    On August 1, 1996, the conference report on H.R. 3448 (H. 
Rept. 104-737) was filed. On August 2, 1996, both the House and 
Senate agreed to the conference report, and on August 20, 1996, 
the President signed the bill into law (P.L. 104-188).
    Many of the revenue provisions in H.R. 3448 were included 
in H.R. 2491, the ``Balanced Budget Act of 1995.'' H.R. 3448 
included the following significant revenue-losing provisions: 
increased expensing under section 179 of the Internal Revenue 
Code and other incentives for small businesses; a number of 
provisions that simplify and strengthen the retirement plan 
provisions in the Internal Revenue Code (such as establishing 
Savings Incentive Match Plans for employees of small 
businesses, allowing section 457 plans to establish trusts, 
allowing tax-exempt organizations to establish 401(k) plans, 
establishing safe harbor non-discrimination rules for section 
401(k) plans, permitting tax-exempt entities and employee stock 
ownership plans (ESOPs) to be subchapter S shareholders, and 
permitting IRA contributions of up to $2,000 to be made for 
each spouse--including a homemaker who does not work outside 
the home--if the combined compensation of both spouses is at 
least equal to the combined amount); Subchapter S 
simplification and reforms (such as increasing the number of 
shareholders an S corporation may have and allowing S 
corporations to hold S corporation and C corporation 
subsidiaries); extension of several previously expired tax 
provisions, including the work opportunity tax credit 
(replacing the expired targeted jobs tax credit), the exclusion 
for employer-provided educational assistance, the research and 
experimentation tax credit, the orphan drug tax credit, the 
deduction for gifts of stock to private foundations, and the 
nonconventional fuels tax credit; and several miscellaneous 
proposals (such as repeal of section 956A of the Internal 
Revenue Code, modification of the ozone depleting chemicals 
tax, tax-exempt bonds for the Alaska Power Administration, 
clarification of the tax status of newspaper carriers, tax-free 
conversion of common trust funds into mutual funds, and 
modification of the depreciation for small motor fuel/
convenience store outlets). It also included an adoption tax 
credit and related provisions from H.R. 3286, the ``Adoption 
Promotion and Stability Act of 1996'' (see above), and a 
renewal of the Generalized System Preferences, from H.R. 1654, 
the ``GSP Renewal Act of 1995.''
    H.R. 3448 was approximately revenue neutral and contained 
several revenue-raising provisions: repeal (over a ten-year 
period) of the section 936 credit; extension of the airline 
ticket tax through 1996; repeal of the 50 percent interest 
income exclusion for financial institution loans to ESOPs; a 
look-through rule for purposes of characterizing certain 
subpart F insurance income as unrelated business income; repeal 
of advance refunds of diesel fuel tax for diesel cars and light 
trucks; reform of the income forecast method of accounting; 
modification of the exclusion for damages received on account 
of personal injuries; modification to the basis adjustment and 
other rules under section 1033 (relating to involuntary 
conversions); modification of the two-county tax-exempt bond 
rule; election to convert scholarship funding corporations into 
taxable corporations; establishment of FASITs; tax-free 
treatment of contributions in aid of construction; a 
requirement to apply math error rules for dependency exemptions 
and filing status when correct taxpayer identification numbers 
are not used; repeal of the business exclusion for energy 
subsidies provided by public utilities; repeal of the special 
bad debt deduction rules that apply to thrift institutions (see 
above); phase-out and repeal of the luxury automobile excise 
tax; and modification of the treatment of foreign trusts.
    Legislation to extend the Generalized System of Preferences 
was included in the conference report on H.R. 3448, with 
provision to extend the program through May 31, 1997 (see 
Legislative Review of Trade Issues, below).

                     12. Additional Tax Provisions

a. EIC provisions in welfare reform

    H.R. 3734, the ``Personal Responsibility and Work 
Opportunity Act of 1996,'' (P.L. 104-193) (see Legislative 
Review of Human Resource Issues, below) contained several 
changes to the EIC designed to improve compliance and to target 
the EIC to lower income families. In summary, the new law 
denies the EIC to persons who are unauthorized to work in the 
United States, make changes to the amount and expands the 
definition of disqualified income, revises the calculation of 
adjusted gross income for purposes of the EIC phaseout, and 
authorizes the IRS to use math error procedures when returns do 
not include correct taxpayer identification numbers or where 
self-employment taxes are not paid by EIC filers, generally 
effective for tax years after 1995.

b. Miscellaneous tax reforms

    On July 11 and 12, 1995, the Committee held hearings on 
various miscellaneous tax reform and simplification proposals.

c. Senior Citizens' Right to Work Act of 1995

    The Senior Citizens' Right to Work Act of 1995 would permit 
members of the clergy to revoke exemption from Social Security 
coverage (see Legislative Review of Social Security Issues, 
below).

d. President's fiscal year 1997 budget

    On March 19, 1996, President Clinton submitted his fiscal 
year 1997 budget to the Congress. On April 15, 1996, the 
Committee requested written comments from the public on 
provisions in the President's budget that were not in the 
Balanced Budget Act of 1995.

e. Miscellaneous tax provisions involving the jurisdiction of the 
        committee

    During the 104th Congress, the Committee exercised 
jurisdiction over several transportation-related bills reported 
by the Committee on Transportation and Infrastructure.
    On May 9, 1995, pursuant to an exchange of letters between 
Committee Chairman Archer and Committee on Transportation and 
Infrastructure Chairman Shuster, a technical amendment 
clarifying the uses of the Oil Spill Liability Trust Fund was 
offered during House consideration of H.R. 1361, the ``Coast 
Guard Authorization Act for FY 1996.'' In addition, Chairman 
Archer requested the deletion, during conference consideration 
of S. 1004, the ``Coast Guard Authorization Act of 1995,'' of a 
Senate amendment which would have expanded the uses of the 
Sport Fish Account within the Aquatic Resources Trust Fund. 
Subsequently, the Senate amendment was deleted from the 
conference report (H. Rept. 104-854), and on October 19, 1996, 
the President signed the bill into law (P.L. 104-324).
    On July 17, 1996, the full Committee approved a conforming 
amendment to be included in H.R. 3592, the ``Water Resources 
Development Act of 1996.'' The amendment updated the Harbor 
Maintenance Trust Fund expenditure purposes in the Internal 
Revenue Code to allow the expenditures contemplated by the 
underlying bill.
    On July 26, 1996, in an exchange of letters between 
Committee Chairman Archer and Committee on Transportation and 
Infrastructure Chairman Shuster, it was agreed that an 
amendment would be included as part of H.R. 3539, the ``Federal 
Aviation Authorization Act of 1996,'' which would strike the 
tax title previously included in the authorization bill and add 
language to extend the Airport and Airway Trust Fund 
expenditure purposes and authority contained in the Internal 
Revenue Code through October 1, 1999. In addition, it was 
agreed that language be included in H.R. 3539 regarding 
proposed overflight fees and commission appointments. On 
September 24, 1996, representatives from the Committee were 
named as conferees on H.R. 3539. In summary, the conference 
report (H. Rept. 104-848) included language similar to House 
provisions governing overflight fees and an extension of the 
aviation Trust Fund expenditure authority and purposes until 
October 1, 1998. On October 9, 1996, the President signed the 
bill into law (P.L. 104-264).

                 C. Legislative Review of Trade Issues

            1. extension of fast track negotiating authority

    ``Fast track'' implementing procedures, which were first 
enacted in 1974, have expired with respect to new trade 
agreements entered into after the Uruguay Round. These 
procedures permitted the President to enter into trade 
agreements and seek implementation for those agreements under a 
special approval process.
    On September 22, 1995, chairman Archer, Subcommittee on 
Trade Chairman Crane, and Rep. Dreier, introduced H.R. 2371, 
the ``Trade Agreements Authority Act of 1995.'' The legislation 
would put in place special procedures for implementing trade 
agreements entered into between January 1, 1996, and December 
31, 1999, with an extension available. The procedures would be 
similar to the expired provisions, with modifications to 
clarify and narrow their application so that they do not apply 
to provisions that are not directly related to the trade 
negotiating objectives and are extraneous to the concluded 
trade agreement.
    The Subcommittee on Trade and the Subcommittee on Rules and 
Organization of the House Committee on Rules held joint 
hearings on fast track issues on May 11 and May 17, 1995.
    On October 20, 1995, the Committee reported to the House 
H.R. 2371, as amended. The bill, as reported, included a 
provision to give the President proclamation authority to 
modify tariffs on products from the West Bank and Gaza Strip.
    As reported by the Committee, H.R. 2371 would specify that 
bills implementing trade agreements may qualify for fast track 
procedures only if those bills consist solely of provisions 
directly related to principal trade negotiating objectives set 
forth in the bill, provisions necessary for the operation or 
implementation of trade agreements, and provisions approving 
the agreement and statement of administrative action. Under the 
bill, fast track would also apply to provisions that define and 
clarify operation and effect of U.S. law and provisions 
necessary to comply with budget offset requirements. H.R. 2371 
would also provide authority to the President to negotiate 
certain tariff reductions without the need for implementation. 
The bill would establish a number of requirements that the 
President consult with Congress and require the President, at 
least 90 days before entering into an agreement, to notify 
Congress of his intent to enter into the agreement. The bill 
would add a new requirement that the President, within 60 days 
of signing an agreement, submit to Congress a preliminary list 
of existing laws that he considers would be required to bring 
the United States into compliance with agreement. Most of the 
remaining provisions were identical to the expired law. There 
was no further Congressional action.

                  2. shipbuilding trade agreement act

    After five years of negotiation, key shipbuilding nations 
(the United States, the European Union, Japan, South Korea, 
Finland, Sweden, and Norway) completed negotiations and signed 
on December 21, 1994, the Agreement Respecting Normal 
Competitiveness Conditions in the Commercial Shipbuilding and 
Repair Industry. The Agreement, negotiated under the auspices 
of the Organization for Economic Cooperation and Development, 
applies to the construction and repair of self-propelled 
seagoing vessels of 100 gross tons and above and covers 
approximately 80 percent of the ships engaged in global 
shipping. The Agreement was scheduled to enter into force on 
January 1, 1996. In the United States, legislation must be 
enacted by Congress to bring U.S. law into compliance with the 
Agreement.
    On July 18, 1995, the Subcommittee on Trade held a hearing 
to discuss implementation of the Shipbuilding Agreement.
    On December 11, 1995, Subcommittee Chairman Crane, and 
Reps. Gibbons and Dunn introduced H.R. 2754, the `Shipbuilding 
Trade Agreement Act.'' On December 13, 1995, the Subcommittee 
on Trade reported to the full Committee H.R. 2754.
    On April 18, 1996, the Committee reported to the House H.R. 
2754, as amended (H. Rept. 104-524, Part I).
    As reported by the Committee, H.R. 2754 would implement the 
Agreement under U.S. law. Specifically, the bill would 
establish an injurious pricing mechanism analogous to Title VII 
of the Tariff Act of 1930, which implements the antidumping 
provisions of the Uruguay Round. In addition, the bill would 
eliminate the current 50 percent duty on repairs to U.S. flag 
vessels made in signatory countries. The bill would also amend 
the Merchant Marine Act of 1936 to assure U.S. compliance with 
the Agreement, including adjustment of the terms of the Title 
XI loan guarantee program. Finally, the bill would provide 
measures to offset the revenue that would be lost in 
eliminating the 50 percent repair duty.
    On May 29, 1996, the Committee on National Security 
reported to the House H.R. 2754, as amended (H. Rept. 104-524, 
Part II). The most significant change from the bill as reported 
by the Committee on Ways and Means was a delay of the effective 
date of the amendment to the Title XI loan guarantee program.
    On June 13, 1996, the House passed H.R. 2754, as amended. 
As amended, the bill would establish an injurious price 
mechanism and eliminate the 50 percent vessel repair duty. In 
addition, the bill would delay the effective date of the Title 
XI modifications for 30 months, prohibit any measures against 
Jones Act vessels, and carve out an exception for military 
reserve vessels. The bill was not considered by the full 
Senate.

                      3. bilateral trade relations

a. Trade relations with the People's Republic of China, including most-
        favored-nation status

    On June 2, 1995, the President announced his decision to 
waive, for another year with respect to China, the freedom-of-
emigration requirements in Title IV of the Trade Act of 1974, 
thereby granting China most-favored-nation (MFN) status between 
July 1995 and July 1996.
    On May 23, 1995, the Subcommittee on Trade held a hearing 
on the question of renewing China's most-favored-nation trade 
status. At this hearing, Members of Congress, as well as 
representatives of the Administration and the business 
community, expressed their views regarding U.S.-China trade 
relations. Earlier in the year, on March 9, 1995, the 
Subcommittee received testimony from the United States Trade 
Representative Ambassador Mickey Kantor on the intellectual 
property rights agreement signed with the People's Republic of 
China on February 6, 1995, and on prospects for China's 
accession to the World Trade Organization.
    On June 16, 1995, H.J. Res. 96, a joint resolution 
disapproving the extension of nondiscriminatory (MFN) treatment 
to the products of the People's Republic of China, was 
introduced by Rep. Wolf. On July 17, 1995, the Committee 
reported adversely to the House H.J. Res. 96 without amendment 
(H. Rept. 104-188). On July 20, 1995, H.J. Res. 96, was tabled 
in the House, thereby continuing MFN treatment for one year.
    On May 31, 1996, the President announced his decision to 
waive, for another year with respect to China, the freedom-of-
emigration requirement of Title IV of the Trade Act of 1974, 
thereby granting China MFN status between July 1996 and July 
1997.
    On June 11, 1996, the Subcommittee on Trade held a hearing 
on the question of renewing China's most-favored-nation trade 
status. At this hearing, testimony was received from Members of 
Congress, Acting United States Trade Representative Ambassador 
Charlene Barshefsky, and representatives from business, human 
rights, and labor organizations on the subject of U.S.-China 
trade relations.
    On June 13, 1996, H.J. Res. 182, a joint resolution 
disapproving the extension of nondiscriminatory (MFN) treatment 
to the products of the People's Republic of China, was 
introduced by Rep. Rohrabacher. On June 25, 1996, the Committee 
reported adversely to the House H.J. Res. 182, without 
amendment (H. Rept. 104-634), and on June 27, 1996, H.J. Res. 
182 failed passage in the House, thereby continuing MFN 
treatment for one year.
    Finally, on July 16, 1996, Chairman Crane requested public 
comment concerning a change in terminology ``most-favored-
nation'' treatment.

b. Trade relations with Cambodia, including most-favored-nation status

    On February 23, 1995, the Subcommittee on Trade issued a 
request for written public comment on the extension of MFN 
treatment to the products of Cambodia. In response, the 
Subcommittee received comments from the private sector in favor 
of the proposed extension and no comments in opposition to it.
    On May 16, 1995, H.R. 1642 was introduced by Subcommittee 
on Trade Chairman Crane to provide for the extension of MFN 
treatment to the products of Cambodia by striking ``Kampuchea'' 
from General note 3(b) of the Harmonized Tariff Schedule upon 
the effective date of a Federal Register notice that a trade 
agreement obligating reciprocal MFN treatment between the 
United States and Cambodia has entered into force. The bill 
also would require the President to submit a report to 
Congress, no later than 18 months after the date of enactment, 
on trade relations between the United States and Cambodia 
pursuant to the bilateral trade agreement.
    On June 7, 1995, the Subcommittee on Trade reported to the 
full Committee H.R. 1642, without amendment. On June 27, 1995, 
the Committee reported to the House H.R. 1642, without 
amendment (H. Rept. 104-160). On July 11, 1995, the House 
passed H.R. 1642. On July 25, 1996, the Senate passed H.R. 1642 
as amended, and on September 12, 1996 the House concurred in 
the Senate amendment. On September 25, 1996, the President 
signed the bill into law by (P.L. 104-203).

c. Trade relations with Bulgaria, including most-favored nation status

    On April 19, 1995, the Subcommittee on Trade issued a 
request for written public comment on the extension of 
permanent and unconditional MFN treatment to the products of 
Bulgaria. In response, the Subcommittee received comments from 
the private sector in favor of the proposed extension and no 
comments in opposition to it.
    On May 16, 1995, H.R. 1643 was introduced by Subcommittee 
on Trade Chairman Crane to provide the President with the 
authority to determine that Title IV of the Trade Act of 1974 
should no longer apply with respect to Bulgaria and to proclaim 
the extension of permanent MFN treatment to the products of 
that country.
    On June 7, 1995, the Subcommittee on Trade reported to the 
full Committee H.R. 1643, without amendment. On June 27, 1995, 
the Committee reported to the House H.R. 1643, without 
amendment (H. Rept. 104-162). On July 11, 1995, the House 
passed H.R. 1643, without amendment. However, the provisions on 
Bulgaria were later removed from the bill when it was used as a 
vehicle to proceed on unrelated matters.
    On July 10, 1995, the Congress received a presidential 
message transmitting a report indicating Bulgaria's continued 
compliance with the freedom-of-emigration requirements in Title 
IV of the Trade Act of 1974.
    On January 5, 1996, H.R. 2853, a bill identical to the 
House-passed version of H.R. 1643, was introduced by 
Subcommittee on Trade Chairman Crane and Rep. Rangel. On 
February 28, 1996, the Committee reported to the House H.R. 
2853, without amendment (H. Rept. 104-466). On March 5, 1996, 
the House passed H.R. 2853.
    On June 28, 1996, the Senate passed H.R. 2853 without 
amendment. On July 17, 1996, the Congress received another 
presidential message transmitting a report, which was referred 
to the Committee on Ways and Means, indicating Bulgaria's 
continued compliance with the freedom-of-emigration criteria in 
Title IV of the Trade Act of 1974. On July 18, 1996, the 
President signed into law H.R. 2853 (P.L. 104-162).

d. Trade relations with Romania, including most-favored-nation status

    On May 19, 1995, the President sent a message transmitting 
a report to Congress, which found Romania to be in full 
compliance with the freedom-of-emigration requirements in Title 
IV of the Trade Act of 1974. This action removed the need for 
an annual Presidential waiver to provide for the continuation 
of Romania's MFN status.
    On July 11, 1995, and on January 3, 1996, the Congress 
received presidential messages transmitting reports, indicating 
Romania's continued compliance with the freedom-of-emigration 
criteria in Title IV of the Trade Act of 1974.
    On March 26, 1996, H.R. 3161 was introduced by Subcommittee 
on Trade Chairman Crane to provide the President with the 
authority to determine that Title IV of the Trade Act of 1974 
should no longer apply with respect to Romania and to proclaim 
the extension of permanent MFN treatment to the products of 
that country.
    On April 1, 1996, the Subcommittee on Trade issued a 
request for written public comment on the extension of 
permanent and unconditional MFN treatment to the products of 
Romania. The Subcommittee received a significant number of 
comments in favor of the proposed extension, primarily from 
business groups and individual firms, and a few comments in 
opposition to it, largely from groups concerned about minority 
rights in Romania.
    On May 14, 1996, the Subcommittee on Trade reported to the 
full Committee H.R. 3161, without amendment. On June 18, 1996, 
the Committee reported to the House the bill, without amendment 
(H. Rept. 104-629). On July 17, 1996, H.R. 3161 passed the 
House, and on July 19, 1996, the bill passed the Senate without 
amendment. On August 3, 1996, the President signed the bill 
into law (P.L. 104-171).

e. Trade relations with the West Bank and Gaza Strip, including 
        extension of free trade benefits

    On April 25, 1985, the United States and Israel signed the 
U.S./Israel Free Trade Agreement. In an exchange of letters on 
October 17, 1995, among the United States, the Government of 
Israel, and the Palestinian Authority, the U.S. Trade 
Representative agreed to seek statutory authority to proclaim 
elimination of existing duties on articles of the West Bank and 
Gaza Strip. The Palestinian Authority agreed to accord U.S. 
products duty free access to the West Bank and Gaza Strip, to 
prevent illegal transshipment of goods not qualifying for duty 
free access, and to support all efforts to end the Arab 
economic boycott of Israel.
    On September 21, 1995, the Committee on Ways and Means met 
to consider H.R. 2371, legislation that would extend ``fast 
track'' trade agreement implementing procedures. At that time, 
an amendment was offered and agreed to, which would give the 
President proclamation authority to modify tariffs on products 
from the West Bank and Gaza Strip. On October 20, 1995, the 
Committee reported to the House the bill, as amended (H. Rept. 
104-285, Part I). However, the House took no further action on 
this bill.
    H.R. 3074, legislation to extend free trade benefits to the 
West Bank and Gaza Strip, was introduced on March 13, 1996, by 
Subcommittee on Trade Chairman Crane, and Reps. Shaw and 
Rangel. Specifically, the legislation would provide the 
President proclamation authority to modify or eliminate tariffs 
on products from the West Bank and Gaza Strip and qualifying 
industrial zones.
    On March 25, 1996, the Committee reported to the House the 
bill, without amendment (H. Rept. 104-495).
    On April 16, 1996, the House passed H.R. 3074 under 
suspension of the rules. The Senate passed the bill on 
September 27, 1996, by unanimous consent. On October 2, 1996, 
the President signed the bill into law (P.L. 104-234).

f. Trade relations with Japan

    On March 28, 1996, the Subcommittee on Trade held a hearing 
on U.S. trade policy towards Japan. Government and private 
sector witnesses testified on the effectiveness of various 
sectoral agreements and the progress of the Framework 
Negotiations and sectoral initiatives, including: market 
deregulation, photographic film, semiconductors, insurance, 
medical technology and equipment, and civil aviation.

g. Trade relations with Cuba, including the Cuban Liberty and 
        Democratic Solidarity Act of 1995

    On February 14, 1995, H.R. 927, the Cuban Liberty and 
Democratic Solidarity Act of 1995 was introduced to seek 
international sanctions against Cuba and to plan for the 
support of a transition government leading to a democratically 
elected government in Cuba.
    On June 30, 1995, the Subcommittee on Trade held a hearing 
to examine the economic relationship that is likely to develop 
between the United States and Cuba in the post-Castro era. 
Testimony was received from the Administration, Members of 
Congress, and private sector witnesses.
    On August 3, 1995, Chairman Archer wrote to the Chairman of 
the International Relations Committee to request that a 
manager's amendment be offered during House consideration of 
H.R. 927 to eliminate from the bill all provisions relating to 
trade in sugar and to change the text of the remaining trade-
related provisions to language prepared by Ways and Means 
Committee staff. Based on this understanding, Chairman Archer's 
letter stated that a markup of H.R. 927 by the Committee on 
Ways and Means would not be necessary. On August 4, 1995, the 
Chairman of the International Relations Committee sent a letter 
to Chairman Archer agreeing to his requests.
    On September 21, 1995, H.R. 927, as amended, passed the 
House, and on October 19, 1995, the bill passed the Senate, 
with an amendment. On October 20, 1995, the text of H.R. 927, 
as passed by the House, was included as Subtitle C of Title VI 
of H.R. 2517, an amendment in the nature of a substitute 
adopted to H.R. 2491, the ``Balanced Budget Act of 1995''. H.R. 
2491 passed the House on October 26, 1995. The Cuba legislation 
was not included in the Senate-passed version or the conference 
report on H.R. 2491.
    The provisions were subsequently included in the conference 
report on H.R. 927 (H. Rept. 104-468). based on an exchange of 
letters, a provision was added in conference section 102 to 
codify existing Executive Orders and regulations on the Cuban 
embargo.
    On March 5, 1996, the conference report on H.R. 927 passed 
the Senate and passed the House on March 6, 1996. On March 12, 
1996, the President signed the bill into law (P.L. 104-114).

h. Trade relations with sub-Saharan Africa

    On February 5, 1996, the President transmitted to Congress 
the first of five annual reports required under section 134 of 
the Uruguay Round Agreements Act (URAA) entitled the 
Comprehensive Trade and Development Policy for the Countries of 
Africa.
    On August 1, 1996, the Subcommittee on Trade held a hearing 
to review the status of trade relations between the United 
States and the countries of sub-Saharan Africa, including the 
opportunities and obstacles that exist. In addition, the 
hearing explored possible ways for the United States to expand 
and facilitate trade relations, as well as develop new trade 
opportunities, with sub-Saharan Africa. Administration 
witnesses testified from the Office of the United States Trade 
Representative and the Department of State. In addition, 
testimony was received from Members of Congress and private 
sector witnesses.
    On September 26, 1996, H.R. 4198 was introduced by 
Subcommittee on Trade Chairman Crane and Reps. Rangel, and 
McDermott to authorize a new trade and investment policy for 
sub-Saharan Africa.

i. Iraq, Serbia, and Montenegro

    On May 29, 1996, the Committee on Appropriations reported 
to the House H.R. 3540, a bill making appropriations for 
foreign operations programs for fiscal year 1997 (H. Rept. 104-
600). The bill included a provision granting authority to the 
President to impose import sanctions on products from countries 
which have not conformed to the United Nations sanctions with 
respect to Iraq, Serbia or Montenegro. The granting of 
authority to impose such sanctions falls within the 
jurisdiction of the Committee on Ways and Means. On May 30, 
1996, Chairman Archer wrote to the Chairman of the Foreign 
Operations, Export Financing and Related Programs Subcommittee 
of the Committee on Appropriations and indicated he would not 
object to a waiver of House Rule XXI(5)(b) on this bill.
    On June 11, 1996, H.R. 3540 passed the House. H.R. 3540 was 
later included as part of the conference report to H.R. 3610, 
Making Omnibus Consolidated Appropriations for Fiscal Year 1997 
(H. Rept. 104-863), which passed the House on September 28, 
1996, and passed the Senate on September 30, 1996. On September 
30, 1996, the President signed the bill into law (P.L. 104-
208).

j. Iran and Libya Sanctions Act of 1996

    On April 17, 1996, H.R. 3107, the Iran Oil Sanctions Act of 
1996, a bill to impose sanctions on persons exporting certain 
goods or technology to Iran that would enhance this country's 
ability to develop its petroleum resources, was reported to the 
House by the Committee on International Relations (H. Rept. 
104-523, Part I). On May 22, 1996, the Subcommittee on Trade 
held a hearing on Iran and Libya sanctions. Testimony was 
received from USTR, the Department of State, and the Department 
of the Treasury concerning the Administration's goals with 
respect to ending support for terrorist activities by these 
countries and the potential effectiveness of the proposed 
legislation in deterring these activities.
    On June 14, 1996, the Committee reported to the House H.R. 
3107, as amended (H. Rept. 104-523, Part II). H.R. 3107 as 
amended would: establish certain sanctions to deter Iran and 
Libya from acquiring weapons of mass destruction; and urge the 
President to pursue negotiations to establish a multilateral 
sanctions regime with respect to Iran.
    On June 19, 1996, H.R. 3107 passed the House, as amended. 
On July 16, 1996, the Senate passed H.R. 3107 with an amendment 
to make sanctions against investments that contribute to the 
development of Libya's petroleum resources mandatory, rather 
than discretionary. On July 23, 1996, the House agreed to H.R. 
3107, as amended by the Senate. On August 5, 1996, the 
President signed the bill into law (P.L. 104-172).

k. Parity for Caribbean basin initiative countries

    On January 8, 1995, H.R. 553, the Caribbean Basin Trade 
Security Act, was introduced by Subcommittee on Trade Chairman 
Crane and Reps. Shaw, Gibbons, and Rangel. The bill would grant 
beneficiary countries under the Caribbean Basin Initiative 
(CBI) tariff and quota treatment equivalent to that under the 
North American Free Trade Agreement (NAFTA), for up to ten 
years on all products not already receiving duty-free 
treatment, in order to ensure that CBI countries would not be 
adversely affected by NAFTA.
    On February 10, 1995, the Subcommittee on Trade held a 
hearing on H.R. 553. On April 24, 1995, the Subcommittee 
reported to the full Committee H.R. 553 with an amendment. The 
bill as reported contained the provisions of H.R. 553 as 
introduced, technical and conforming changes, and a provision 
regarding triennial reviews of benefits accorded under H.R. 
553, based on eligibility criteria in current law, but 
providing additional guidance on how such criteria should be 
interpreted.
    There was no further action by the Committee.

    4. Operations of U.S. Customs Service, the International Trade 
             Commission, and the U.S. Trade Representative

    On January 30, 1996, the Trade Subcommittee held a hearing 
on the reorganization plans of the Customs Service, including 
efforts to implement the Customs Modernization Act. Testimony 
was received from Customs, the U.S. General Accounting Office, 
the National Treasury Employees Union, and a panel of private-
sector witnesses.
    On February 27, 1995, the Trade Subcommittee held a hearing 
on authorizations of appropriations for Customs, the U.S. 
International Trade Commission (ITC), and the Office of the 
United States Trade Representative (USTR), and to review the 
Administration's fiscal year 1996 and 1997 budget proposals for 
these trade agencies. The hearing also addressed the 
effectiveness of the operation of these agencies. Testimony was 
received from representatives of these agencies as well as from 
trade organizations interested in import and export issues.
    On March 29, 1995, the Trade Subcommittee considered a 
draft bill to authorize appropriations for fiscal years 1996 
and 1997 for Customs, the ITC, and USTR. The draft bill as 
reported included a provision for an annual trade agreements 
reporting requirement. On June 19, 1995, Subcommittee on Trade 
Chairman Crane introduced H.R. 1887, a bill containing the 
provisions reported by the Subcommittee on Trade authorizing 
appropriations for Customs, the ITC, and USTR; repealing the 
Caribbean Basin Economic Recovery Act Report; changing the 
publication of the Economic Impact of the Andean Trade 
Preference report from each calendar year to every two calendar 
years; repealing the East-West Trade Statistics Monitoring 
System; and requiring the President to submit additional 
information on trade agreements in the annual report to 
Congress.
    H.R. 1887 authorized appropriations for the U.S. Customs 
Service not to exceed $550,237,000 in each of fiscal years 1996 
and 1997 for salaries and expenses incurred in noncommercial 
operations, and not less than $839,593,000 in each of fiscal 
years 1996 and 1997 for salaries and expenses incurred in 
commercial operations. The bill further authorized $60,993,000 
in each of fiscal years 1996 and 1997 for operation and 
maintenance of Customs' Air and Marine Interdiction Program.
    The bill also authorized appropriations for the ITC of 
$44,500,000 in each of fiscal years 1996 and 1997. Of the 
amount authorized, not more than $2,500 could be used for 
reception and entertainment expenses, subject to the approval 
of the Chairman of the Commission.
    The bill authorized appropriations to USTR of $20,949,000 
for each of fiscal years 1996 and 1997. Of these amounts, not 
more than $98,000 could be used for entertainment and 
representation, and not more than $2,500,000 would remain 
available until expended.
    On June 27, 1995, the Committee reported to the House H.R. 
1887 as amended, with a provision to restore legislative 
authority for officials from the Customs' Air and Marine 
Interdiction Program to support other Federal, State, and local 
agencies in their law enforcement and emergency humanitarian 
efforts (H. Rept. 104-161). There was no further action taken 
in the House on H.R. 1887.
    Finally, on January 31, 1996, the Subcommittee requested 
comments from the public concerning possible reforms to the 
International Trade Commission.

                  5. Generalized system of preferences

    On February 27, 1995, the Subcommittee on Trade held a 
hearing on the extension of the Generalized System of 
Preferences (GSP). The Subcommittee received testimony in 
support of extending GSP form the Administration and from 
companies and associations representing exporters, importers, 
economic development groups, and consumer interests.
    On May 17, 1995, H.R. 1654, the GSP Renewal Act of 1995, a 
bill to reauthorize the Generalized System of Preferences 
Program for a period of five years, was introduced by 
Subcommittee on Trade Chairman Crane and Rep. Rangel. The bill 
would make modest reforms and technical changes to Title V of 
the Trade Act of 1974 that are intended to simplify and improve 
the administration of the GSP program. On May 18, 1995, the 
Subcommittee on Trade reported the bill to the full Committee, 
without amendment.
    On September 13, 1995, the Committee ordered reported to 
the Committee on the Budget Budget Reconciliation 
Recommendations-Trade Items, which were included in H.R. 2491, 
the ``Balanced Budget Act of 1995'' (H. Rept. 104-280). The 
recommendations, as reported, reauthorized the program for 2.5 
years through December 31, 1997, retroactive to the July 31, 
1995 expiration date. The provisions were included in the 
conference report, but the bill was vetoed by the President on 
December 6, 1995.
    On August 2, 1996, the House and Senate approved the 
conference agreement on H.R. 3448, the Small Business Jobs 
Protection Act of 1996, which included the GSP extension 
through May 31, 1997 (H. Rept. 104-737). On August 20, 1996, 
the President signed the bill into law (P.L. 104-188).

                     6. Miscellaneous trade issues

a. Legislation to make technical corrections and miscellaneous 
        amendments to trade laws, including rules of origin

    On April 25, 1995, Trade Subcommittee Chairman Crane 
requested written comments from parties interested in technical 
corrections and other miscellaneous changes to U.S. trade laws. 
Among these provisions was a set of technical amendments 
approved by the Committee during the 103rd Congress for 
inclusion in the Uruguay Round Agreements Act (P.L. 103-465) 
but which were not included in the final version of the bill 
submitted to the President. In response to Chairman Crane's 
request, the Committee received comments from the private 
sector and the Administration.
    On July 11, 1995, the Trade Subcommittee held a hearing on 
rules of origin. The hearing reviewed the administration of 
U.S. laws for preferential and non-preferential rules of origin 
and country-of-origin marking requirements, and the prospects 
for the World Trade Organization (WTO) rules-of-origin working 
program referred to in section 132 of the URAA. Requests for 
exemptions from country-of-origin marking requirements for 
certain imports were included in the record of this hearing. 
Legislative proposals were subsequently introduced to provide 
these marking exemptions.
    On June 14 and August 2, 1995, the Trade Subcommittee 
reported to the full Committee two draft bills to make 
technical corrections and other miscellaneous amendments to 
trade laws. On September 13, 1995, the Committee reported to 
the Committee on the Budget, Budget Reconciliation 
Recommendations-Trade Items, including the text of these two 
draft bills (H. Rept. 104-280). These provisions were included 
in H.R. 2491, the ``Balanced Budget Act of 1995,'' which passed 
the House on October 26, 1995 (H. Rept. 104-280). The 
provisions were subsequently removed from the bill prior to the 
House-Senate conference, due to the application in the Senate 
of the ``Byrd Rule.''
    On August 9, 1995, and January 31, 1996, Subcommittee on 
Trade Chairman Crane requested written comments from parties 
interested in additional technical corrections and 
miscellaneous amendments to trade laws. In response to these 
comments, the Trade Subcommittee prepared a draft bill. In 
addition, the Office of Law Revision Counsel identified the 
need for a number of technical and clerical changes to trade 
laws. These items were also included in the draft Subcommittee 
bill. On May 9, 1996, the Trade Subcommittee reported to the 
full Committee, without amendment, a draft bill consisting of a 
package of technical corrections, duty suspensions and other 
miscellaneous changes to trade laws.
    On July 16, 1996, Trade Subcommittee Chairman Crane 
introduced H.R. 3815, which combined the proposals passed by 
the House as part of H.R. 2491 and proposals reported by the 
Subcommittee on Trade on May 9, 1996. On July 29, 1996, the 
Committee reported to the House H.R. 3815, as amended. The bill 
as reported included a provision that would have placed a 
specific moratorium on changes in the country-of-origin marking 
requirements for metal forgings and hand tools, as well as 
general consultation and layover requirements for any changes 
in Administration policy with regard to rules of origin and 
country-of-origin marking requirements. On July 30, 1996, H.R. 
3185 passed the House under suspension of the rules.
    On September 25, 1996, the Senate Committee on Finance 
reported H.R. 3815, with amendments, which did not include the 
provision relating to the moratorium, consultation, and layover 
requirements for rules of origin and country-of-origin marking 
requirements.
    On September 28, 1996, H.R. 3815, as amended, passed the 
Senate and the House by unanimous consent. The President signed 
the bill into law on October 11, 1996 (P.L. 104-295).

b. Department of Commerce Dismantling Act

    On June 29, 1995, the House and Senate passed the 
conference report on H. Con. Res. 67, the ``Concurrent 
Resolution on the Budget for Fiscal Years 1996, 1997, 1998, 
1999, 2000, 2001 and 2002,'' which called for the elimination 
of the Department of Commerce.
    On September 13, 1995, the Committee met to consider H.R. 
1756, a bill to abolish the Department of Commerce. On 
September 21, 1995, the Committee reported to the House H.R. 
1756, as amended (H. Rept. 104-260, Part I).
    The bill, as reported, would dismantle the Commerce 
Department and reorganize certain of its trade functions into 
the United States Trade Administration. The Administrator would 
be appointed by the President with Senate advice and consent 
but would not have Cabinet rank. The United States Trade 
Representative (USTR) would remain a separate, Cabinet-level 
agency coordinating trade policy among departments and 
agencies, with continued direct access to the President.
    In addition, the bill would permit U.S. participation in 
the United State section of the NAFTA Secretariat and the 
Border Environment Cooperation Commission to continue. However, 
funding must come out of authorizations for other trade 
functions, and no additional funds would be authorized to be 
appropriated for U.S. participation. H.R. 1756, as amended by 
the Committee, would abolish the Committee for the 
Implementation of Textile Agreements. Certain functions would 
be transferred to USTR, and functions relating to assessing the 
impact of textile imports on the domestic industry would be 
transferred to the U.S. International Trade Commission.
    The bill would transfer the chairmanship of the Foreign 
Trade Zones (FTZs) Board to the new Administrator. The U.S. 
Customs Service would continue to supervise and enforce the 
operation of FTZs. The bill would abolish as duplicative the 
Trade and Development Agency and would repeal the special 
treatment for watches in the Harmonized Tariff Schedule of the 
United States. Finally, the bill would cut the total budget for 
trade functions by 25 percent but would not require that the 
budget for each function be cut by that percentage. The 
President would be required to conduct a study on the 
consolidation of export promotion and export financing 
functions.
    On October 26, 1995, the House passed H.R. 2491, the 
``Balanced Budget Act of 1995.'' Title XVII of that bill was 
entitled the Department of Commerce Dismantling Act. With 
respect to the provisions within the jurisdiction of the 
Committee on Ways and Means, the bill included language similar 
to H.R. 1756, as reported by the Committee, except that all of 
the trade functions previously performed by Commerce would be 
transferred to the United States Trade Representative.
    On October 28, 1995, the Senate passed H.R. 2491, striking 
all after the enacting clause and inserting the text of S. 
1357. The Senate version did not contain the Commerce 
reorganization provisions, and the provision were not included 
in the conference report that was passed by the Senate on 
November 17, 1995, and by the House on November 20, 1995, and 
vetoed by the President on December 6, 1995.
    The language contained in Title XVII of the House-passed 
version of H.R. 2491 was then included in H.R. 2586, a bill to 
provide a temporary increase in the public debt limit, which 
was passed by the House on November 9, 1995. Also on November 
9, the Senate passed H.R. 2586, but without the Commerce 
Department reorganization provisions.
    There was no further Congressional action.

c. Atlantic Tunas Convention Act

    On May 1, 1995, H.R. 541, the ``Atlantic Tunas Convention 
Act of 1995,'' as reported by the Committee on Resources, was 
sequentially referred to the Committee on Ways and Means for a 
period ending not later than June 30, 1995. H.R. 541, as 
reported by the Committee on Resources, would delete existing 
provisions permitting sanctions and instead provided for some 
mandatory sanctions against countries without measures 
comparable to those in the United States and would have 
required the President to undertake consultations with 
countries identified under the Act. In addition, the bill would 
require the Secretary of Commerce to certify to the President 
whether any countries have not established or are not likely to 
establish reporting, monitoring, and enforcement measures 
comparable to those in effect for the United States. Finally, 
the bill would require the President, within sixty days of such 
a certification, to limit the importation of fish to levels 
consistent with the quota levels established by the Commission. 
On June 16, 1995, the Subcommittee on Trade reported to the 
full Committee H.R. 541, as amended.
    On June 27, 1995, the Committee reported to the House H.R. 
541 without further amendment (H. Rept. 104-109, Part II). As 
reported by the Committee on Ways and Means, the bill would 
strike the mandatory trade sanctions included in the version 
reported by the Committee on Resources and instead include as a 
condition for certification whether a signatory has measures 
that are adequate and effective to meet the obligations of the 
International Convention for the Conservation of Atlantic Tunas 
(ICCAT). In addition, the bill would add more streamlined 
provisions requiring Commerce to identify, notify, and publish 
a list of countries whose fishing vessels are fishing or have 
fished during the previous year in the convention area in a 
manner inconsistent with the objectives of an ICCAT 
recommendation. The President may then enter into consultations 
with identified nations.
    The text of H.R. 541, as amended, was incorporated as an 
amendment to H.R. 716, which passed the House on April 3, 1995. 
The bill passed the Senate with an amendment on June 30, 1995. 
The House agreed to the Senate amendment on October 24, 1995, 
and the President signed the bill into law on November 3, 1995 
(P.L. 104-43).

d. International Dolphin Conservation Program Act

    On July 10, 1996, H.R. 2823, the ``International Dolphin 
Conservation Program Act,'' as amended by the Committee on 
Resources, was sequentially referred to the Committee on Ways 
and Means, for a period ending not later than July 23, 1996.
    On July 23, 1996, the Committee on Ways and Means reported 
to the House H.R. 2823, as amended by the Committee on 
Resources, with no further amendments (H. Rept. 104-665, Part 
II).
    H.R. 2823, as amended, would implement into U.S. law the 
Declaration of Panama concerning tuna fishing in the Eastern 
Tropical Pacific (ETP). The bill would recognize that 
significant reduction in dolphin mortality has been achieved by 
nations fishing for tuna in the ETP. In addition, the bill 
would replace the current use of U.S. unilateral standards as a 
trigger for an import ban of tuna caught with purse seine nets 
with multilateral standards agreed to as part of the Panama 
Declaration. Finally, the bill would amend the definition of 
``dolphin safe'' to include only tuna caught in sets in which 
no dolphins were killed.
    The bill passed the House on July 31, 1996.
    There was no further Congressional action.

e. Federal Tea Tasters Repeal Act of 1996

    On February 28, 1996, the Committee reported H.R. 2969, the 
``Federal Tea Repeal Act of 1996,'' to the House, without 
amendment (H. Rept. 104-467, Part I).
    H.R. 2969 repealed the Tea Importation Act of 1897. The 
bill eliminated the Board of Tea Experts and related programs 
which previously prohibited the importation of tea of inferior 
purity, quality, or fitness for consumption to standards set by 
the Secretary of Health and Human Services, as well as the 
inspection fee assessed on tea imports.
    On March 21, 1996, H.R. 2969 passed the House without 
amendment, and passed the Senate on March 25, 1996, without 
amendment. On April 9, 1996, the President signed the bill into 
law (P.L. 104-128).

f. Antidumping issues

    On December 21, 1995, Subcommittee on Trade Chairman Crane 
introduced H.R. 2822, the ``Temporary Duty Suspension Act,'' 
which is legislation to provide the Department of Commerce the 
discretion to suspend antidumping duties temporarily if it 
determines that prevailing market conditions related to the 
availability of the product in the United States make 
imposition of the duty inappropriate.
    On January 31, 1996, the Subcommittee on Trade requested 
written public comments on the legislation. On April 23, 1996, 
the Subcommittee held a hearing on the Commerce Department's 
proposed substantive antidumping regulations and other issues 
concerning the administration of the antidumping law, including 
H.R. 2822. Testimony from the Assistant Secretary of Commerce 
for Import Administration, Members of Congress, the 
Congressional Budget Office, the U.S. International Trade 
Commission, and private sector witnesses was received.
    The Committee took no other formal action.

g. Pre- and post-employment restrictions

    On July 25, 1995, the Senate passed S. 1060, the ``Lobbying 
Disclosure Act of 1995,'' including a provision which would 
prohibit any person serving as the USTR or the Deputy USTR from 
representing or advising a foreign entity at any time after 
termination of that person's service and to disqualify such a 
person from serving as a USTR or Deputy USTR if he or she 
directly represented, aided, or advised a foreign entity in any 
trade negotiation or trade dispute with the United States at 
any time in the past.
    On November 29, 1995, the House passed S. 1060 as passed by 
the Senate, rejecting all amendments offered in the House. The 
President signed the bill into law on December 19, 1995 (P.L. 
104-65).

h. Export Administration Act

    On June 5, 1996, H.R. 361, the ``Omnibus Export 
Administration Act of 1996,'' a bill to reauthorize and reform 
the Export Administration Act of 1979 until June 30, 2001, was 
reported by the Committee on International Relations to the 
House (H. Rept. 104-605, Part I). On June 5, 1995, the bill was 
sequentially referred to the Committee on Ways and Means for 
consideration of provisions within its jurisdiction for a 
period ending not later than June 28, 1996.
    On June 27, 1996, the Committee reported to the House H.R. 
361, as amended by the Committee on International Relations (H. 
Rept. 104-605, Part II).
    On July 16, 1996, H.R. 361 passed the House. There was no 
Senate action.

i. Authorization of Appropriations for Fiscal Year 1997 for Military 
        Activities of the Department of Defense

    On July 17, 1996, the Committee was named as additional 
conferees on the bill H.R. 3230, a bill to authorize 
appropriations for fiscal year 1997 for the military activities 
of the Department of Defense, which contained an amendment to 
the Foreign Trade Zones Act (19 U.S.C. 81a) to remove the 
Secretary of the Army from membership on the Foreign Trade 
Zones Board (H. Rept. 104-724). The conference report was 
passed by the House on August 1, 1996, and by the Senate on 
September 10, 1996. The President signed the bill into law on 
September 23, 1996 (P.L. 104-201).

j. The Comprehensive Antiterrorism Act of 1995

    A provision of the bill H.R. 2703, the ``Comprehensive 
Antiterrorism Act of 1995,'' would make it unlawful to import 
plastic explosives not containing detection devices. On March 
14, the House passed S. 735, a bill to prevent and punish acts 
of terrorism, as amended with the text of H.R. 2703. At the 
request of Chairman Archer, the final conference report (H. 
Rept. 104-518) contained a technical conforming amendment to 
the Tariff Act of 1930 to facilitate Customs interdiction of 
plastic explosives under their seizure and forfeiture 
authority. On April 17, 1996, the Senate agreed to the 
conference report, and on April 18, 1996, the House agreed to 
the conference report. On April 24, 1996, the President signed 
the bill into law (P.L. 104-132).

k. 1996 Farm Bill

    On February 9, 1996, the Committee on Agriculture reported 
H.R. 2854, the ``Agricultural Market Transition Act,'' as 
amended (H. Rept. 104-462, Part I) to the House. The bill 
contained a provision to establish quotas to increase imports 
of upland cotton above amounts allowed under the Uruguay Round 
tariff-rate quotas if domestic cotton prices exceed specified 
levels, and a requirement that importers of diary products pay 
assessments to offset the cost of export and other sales and 
promotion programs. On February 9, 1996, the Committee on Ways 
and Means was discharged from further consideration. The House 
passed H.R. 2854 as amended on February 29, 1996. On March 12, 
1996, the Senate passed H.R. 2854, as amended, in lieu of S. 
1541. On February 23, 1996, and March 19, 1996, Chairman Archer 
wrote to the Chairman of the House Committee on Agriculture 
regarding several trade-related provisions of jurisdictional 
interest to the Committee on Ways and Means under consideration 
by the House-Senate Conference Committee on H.R. 2854. On March 
28, 1996, the House and Senate approved the conference report 
(H. Rept. 104-494), which included the cotton provision but did 
not include the dairy assessments. The President signed the 
bill into law on April 4, 1996 (P.L. 104-127).

l. Section 310 of the Trade Act of 1974

    On September 13, 1995, as part of recommendations to the 
Committee on the Budget for inclusion in H.R. 2491, the 
``Balanced Budget Act of 1995,'' the Committee approved a 
recommendation to extend Section 310 of the Trade Act of 1974, 
the so-called ``Super 301'' trade investigation procedure, 
through the year 2000 (H. Rept. 104-289).
    The provision was not included in the final conference 
report on H.R. 2491, and there was no further Congressional 
action.

m. Trade Adjustment Assistance

    On May 16, 1995, the Subcommittee on Human Resources held a 
hearing on the consolidation of job training programs, 
including Trade Adjustment Assistance (TAA). On June 12, 1995, 
Subcommittee on Trade Chairman Crane requested written comments 
on all TAA programs. The comments received generally supported 
extending these programs.
    On September 21, 1995, the Committee ordered favorably 
reported to the House Committee on the Budget three 
recommendations to modify TAA. The first recommendation 
concerning NAFTA-related TAA amended the authority of the 
Secretary of Labor to waive the requirements for requiring 
workers under general TAA to enter approved training programs 
in order to receive Trade Adjustment Allowance payments only if 
training is not available. The second recommendation terminated 
relocation allowances under both general TAA and NAFTA-related 
TAA. The third recommendation extended all TAA programs through 
fiscal year 2000 and terminated these programs after September 
30, 2000, to coincide with the renewal period proposed for 
extension of fast-track negotiating authority.
    These recommendations were included in H.R. 2491, the 
``Balanced Budget Act of 1995'', which passed the House on 
October 26, 1995. The TAA provisions were subsequently removed 
prior to the House-Senate conference, due to the application in 
the Senate of the ``Byrd Rule.'' There was no further 
Congressional action.

                 D. Legislative Review of Health Issues

                           1. Medicare reform

    A major focus of the Committee was H.R. 2425, the 
``Medicare Preservation Act of 1995,'' introduced by Chairman 
Archer on September 29, 1995.
    Under the proposal, a MedicarePlus program would be 
established to increase the availability of privately offered 
Medicare plan choices to beneficiaries. Changes would be 
proposed in standards relating to premiums, payments, quality 
and other elements of contracting for private health plans 
participating as Medicare risk contractors. Organizational and 
financial requirements would be established for a new risk 
contracting entity known as provider-sponsored organizations.
    Processes would be established for development of uniform 
data elements for MedicarePlus plans and the fee-for-service 
systems. Modifications would be made to rules concerning 
duplication and coordination of Medicare related plans, other 
than Medigap. Special rules would be established for Medicare 
Medical Savings Accounts. A new Medicare Payment Review 
Commission would be established, consolidating and refocusing 
two existing commissions.
    Provisions designed to combat health care fraud and abuse 
would be established including special funding for coordinated 
Federal, State and local programs; new criminal code 
requirements; increased civil monetary penalties; and a 
beneficiary incentive program for reporting overbillings. 
Regulatory relief would be provided for certain compensation 
arrangements of providers, and for shared services. 
Modifications would be made to payments for graduate medical 
education under Medicare. Changes would be made to scheduled 
updates in payments to hospitals, disproportionate share 
payments, capital payments, bad debt payments, and certain 
exempt hospital payments. An interim and future system of 
paying for skilled nursing facility services based on episodes 
of care would be established. Future updates in hospice service 
payments were set.
    Physician payment rules would be changed to establish a 
single-conversion factor and to replace the update default 
formula. The formula-driven overpayment for certain outpatient 
services would be eliminated. Changes would be made in payment 
updates for clinical laboratory services, durable medical 
equipment, ambulance services, and ambulatory surgery center 
services.
    The Part B premium would be kept at 31.5 percent of program 
costs and an income-related reduction in Federal subsidies of 
the Part B premium would be established. A new payment method 
would be established for home-health services. A fail-safe 
budget mechanism would be created to manage annual growth in 
Medicare expenditures.
    A package of provisions relating to rural areas would 
establish a new, rural limited service hospital program; 
special rules for access to emergency services; reinstitution 
of Medicare Dependent Hospitals; special rules on area wage 
adjustments and classification of rural referral centers; 
additional payments in provider shortage areas; expanded nurses 
aide training and payments to physician assistants and nurse 
practitioners.
    A new Title XXII was added to the Social Security Act 
creating a trust fund to aid in financing graduate medical 
education. Lastly, clinical laboratories in a physician's 
office were exempted from Clinical Laboratory Improvement 
Amendments (CLIA) requirements.
    The Subcommittee of Health held hearings on February 6, 7, 
10, 23, March 21, 23, 30, April 3, May 3, 16, 24, 25, July 19, 
20, 25, and 27 on Medicare issues and the full Committee held a 
hearing on H.R. 2425 on September 22, 1995. On October 16, 
1995, the Committee reported to the House H.R. 2425, as amended 
(H. Rept. 104-276, Part I). On October 19, 1995, H.R. 2425 
passed the House.
    For further action see H.R. 2491, the ``Balanced Budget Act 
of 1995.''

                       2. Health insurance reform

    A major focus of the Committee's legislative activity in 
the 104th Congress was consideration of health insurance 
reform. H.R. 3103, the ``Health Insurance Portability and 
Accountability Act of 1996'' (originally called the ``Health 
Coverage Availability and Affordability Act of 1996'') was 
introduced by Chairman Archer on March 18, 1996.
    The bill provided for changes in the health insurance 
market. It guarantees the availability and renewability of 
health insurance coverage for certain employees and 
individuals, and limits the use of preexisting condition 
restrictions. The Act created Federal standards for insurers, 
health maintenance organizations (HMOs), and employer plans, 
including those who self insure. It permitted, however, 
substantial State flexibility for compliance with the 
requirements on insurance. The Secretary of Health and Human 
Services and the Attorney General were required to jointly 
establish a national health care fraud and abuse control 
program to coordinate Federal, State and local law enforcement 
to combat fraud with respect to health plans. The bill also 
extended certain criminal penalties for fraud and abuse 
violations under the Medicare and Medicaid programs to similar 
violations in Federal health care programs except for the 
Federal Employees Health Benefits Program. H.R. 3103 also 
required that any standard or modification of a standard 
adopted applies to the following persons: a health plan; a 
clearinghouse; or a health care provider, but only to the 
extent that the provider was conducting transactions referred 
to in the bill.

a. Tax provisions in H.R. 3103

    The bill's tax-related provisions included a provision 
allowing individuals who are employees covered under a small 
employer-sponsored high-deductible plan or self-employed and 
who meet certain other requirements would be able to make tax-
deductible contributions to a Medical Savings Account (MSA) 
although during the four-year pilot period, 1997-2000, the 
number of taxpayers benefitting annually from an MSA 
contribution would be limited to a threshold level of generally 
750,000 taxpayers. H.R. 3103 also provided an increase in the 
health insurance deduction for the self-employed to 80 percent 
by the year 2006; a medical expense deduction for payment of 
qualified long-term care insurance premiums and expenses; tax-
free accelerated health benefits; tax-exempt status to certain 
State-established high risk insurance pools and to certain 
State-established organizations providing workers' compensation 
reinsurance; treatment of certain State-established 
organizations as Blue Cross/Blue Shield organizations; penalty-
free IRA withdrawals for medical expenses that exceed 7.5 
percent of the adjusted gross income and for health insurance 
premiums for unemployed individuals; and modifications to the 
group health plan requirements. To offset the revenue cost of 
these provisions, the bill established new rules for taxpayers 
who expatriate for tax purposes (see above); limited interest 
deductions with respect to certain corporate-owned life 
insurance; and repealed a special interest allocation rule 
enacted as part of the Tax Reform Act of 1986.
    The Subcommittee on Health held three hearings on 
provisions in the bill, one on January 27, 1995, on health 
insurance tax deductions for the Self-employed, another on May 
12, 1995, on health insurance portability, and, finally, one on 
June 27, 1995, on medical savings accounts.
    On March 25, 1996 the Committee on Ways and Means reported 
to the House H.R. 3103, as amended (H. Rept. 104-496, Part I). 
On March 28, 1996, the bill, as amended, passed the House, and 
it passed the Senate, as amended, on April 23, 1996. On August 
1, 1996, the conference report (H. Rept. 104-736) passed both 
the House and the Senate. The President signed the bill into 
law on August 21, 1996 (P.L. 104-191).

                           3. Medicare SELECT

    On January 11, 1995, Rep. Nancy Johnson introduced H.R. 
483, a bill to amend title XVIII of the Social Security Act to 
permit Medicare SELECT policies to be offered in all States, 
and for other purposes.
    Medicare SELECT is a demonstration which was limited to 15 
States and was set to expire on June 30, 1995. Under Medicare 
SELECT, insurers can offer benefits through designated health 
professionals and facilities known as preferred providers. 
Individuals enrolled in Medicare SELECT receive premium savings 
over traditional fee-for-service Medigap policies that range 
from 10 to 37 percent.
    The Subcommittee on Health held a hearing which discussed 
the Medicare SELECT on February 10, 1995. On March 2nd, 1995, 
the Subcommittee on Health reported to the full Committee H.R. 
483, as amended. The bill as reported extended the program to 
all fifty states and made the program permanent. On March 15, 
1995, the full Committee reported to the House H.R. 483, as 
amended (H. Rept. 104-79, Part I).
    On April 6, 1995, the bill passed the House, and on May 17, 
1995, passed the Senate as amended. The conference report (H. 
Rept. 104-157) passed the Senate on June 26, 1995, and the 
House on June 30, 1995. The President signed the bill into law 
on July 7, 1995 (P.L. 104-18).

       4. 25 Percent health insurance deduction for self-employed

    On February 6, 1995, Chairman Archer introduced H.R. 831, a 
bill to amend the Internal Revenue Code of 1986 to permanently 
extend the deduction for the health insurance costs of self-
employed individuals, to repeal the provision permitting 
nonrecognition of gain on sales and exchanges effectuating 
policies of the Federal Communications Commission, and for 
other purposes.
    An employer's contribution to a plan providing health 
coverage for the employee and the employee's spouse and 
dependents is excludable from the employee's income. No 
equivalent exclusion applied in the case of self-employed. 
However, prior law section 162(l) provided a deduction for 25 
percent of the amount paid for health insurance of a self-
employed individual and the individual's spouse and dependents. 
The 25-percent deduction was also available to more than 2 
percent shareholders of S corporations. This deduction expired 
at the end of 1993.
    H.R. 831 reinstated the 25-percent health insurance 
deduction for self-employed individuals from its expiration on 
December 31, 1993, and extended the deduction permanently.
    The Subcommittee on Health held a hearing on this issue on 
January 27, 1995. On February 14, 1995, the Committee reported 
H.R. 831 to the House, as amended (H. Rept. 104-32).
    The bill passed the House on February 21, 1995, and the 
Senate on March 24, 1995. On March 30, 1995, the House passed 
the conference report (H. Rept. 104-92) and the Senate passed 
the conference report on April 3, 1995. The President signed 
the bill into law on April 11, 1995 (P.L. 104-7).

           5. medicare presidential budget savings extension

    H.R. 1134, the ``Medicare Presidential Budget Savings 
Extension Act,'' was introduced March 6, 1995, by Subcommittee 
on Health Chairman Thomas.
    The bill would maintain savings resulting from temporary 
freezes on payment increases for skilled nursing facilities, 
permanently sets the Part B Medicare premium at 25 percent of 
program expenditure, and extend certain secondary-payer 
provisions, and maintain savings resulting from temporary 
freezes on payment increases for Home Health Services.
    On March 15, 1995, the Committee reported to the House H.R. 
1134 without amendment. H.R. 1134 was then embodied in H.R. 
1215 which was passed by the House on April 5, 1995. There was 
no Senate action on H.R. 1215.

 6. medicare trustees recommendations on resolving projected financial 
                   imbalance in medicare trust funds

    H.R. 1590, a bill to require the Trustees of the Medicare 
Trust Funds to report recommendations on resolving projected 
financial imbalance in Medicare Trust Funds, was introduced on 
May 9, 1995, by Chairman Archer and Subcommittee on Health 
Chairman Thomas.
    The bill would require the Trustees of the Medicare Trust 
Funds to report recommendations on resolving projected 
financial imbalance in Medicare trust funds.
    On May 15, 1995, the Committee reported to the House H.R. 
1590, without amendment. On March 16, 1995, the bill failed to 
receive the necessary two-thirds vote required to suspend the 
rules and pass the bill. There was no further action on the 
legislation.

          7. unnecessary medical device reporting requirement

    H.R. 2366, a bill to repeal an unnecessary medical device 
reporting requirement, repealed section 1862(h) of the Social 
Security Act (42 U.S.C. 1395 y). This provision required 
doctors and hospitals receiving Medicare payments to provide 
information to the Medicare cardiac registry whenever 
pacemakers are used. The Medicare pacemaker registry 
requirements became redundant in 1990, when Congress set up a 
more comprehensive system for reporting on medical devices in 
the Food and Drug laws.
    On November 1, 1995, the Committee reported to the House 
H.R. 2366, without amendment (H. Rept. 104-323, Part II). On 
November 14, 1996, the House passed the bill, and the Senate 
passed the bill on September 25, 1996. The President signed the 
bill into law on October 2, 1996 (P.L. 104-224).

              8. medicare and medicaid coverage data bank

    H.R. 2685, a bill to repeal the Medicare and Medicaid 
Coverage Data Bank, was introduced on November 29, 1995, by 
Subcommittee on Health Chairman Thomas.
    The Medicare and Medicaid Data Bank requires employers 
having or contributing to a group health insurance plan to 
submit employee health insurance information to the Secretary 
of Health and Human Services, on an annual basis, for calendar 
years 1994-1997. H.R. 2685 repeals section 1144 of the Social 
Security Act, which repeals the Data Bank requirement.
    On December 11, 1995, the Committee reported to the House 
H.R. 2685, without amendment (H. Rept 104-394, Part I). On 
March 12, 1996, the House passed the bill, and the Senate 
passed the bill on September 25, 1996. The President signed the 
bill into law on October 2, 1996 (P.L. 104-226).

            E. Legislative Review of Social Security Issues

             1. The ``Senior Citizens' Right To Work Act''

    On January 4, 1995, Subcommittee on Social Security 
Chairman Bunning introduced H.R. 8, the ``Senior Citizens' 
Equity Act.'' On January 9, 1995, the Subcommittee on Social 
Security held a public hearing on the provision of H.R. 8 to 
raise the Social Security earnings limit to $30,000.
    The earnings limit provision of H.R. 8 was subsequently 
incorporated into H.R. 1215, the ``Contract with America Tax 
Relief Act,'' which the Committee reported to the House on 
March 21, 1995 (H. Rept. 104-84), and later passed the House on 
April 5, 1995. (See the Legislative Review of Tax Issues for a 
discussion of the provision to repeal the 85-percent tax on 
Social Security benefits that was enacted as part of OBRA 93.) 
However, H.R. 1215, as passed by the House, did not include the 
earnings limit provision due to Sec. 310(g) of the Budget 
Impoundment and Control Act of 1974, which permits a point of 
order to be raised against a budget reconciliation bill that 
included a Social Security provision.
    On October 25, 1995, Rep. Hastert, Chairman Archer, and 
Social Security Subcommittee Chairman Bunning, and others 
introduced H. Con. Res. 109, expressing sense of the Congress 
commitment to pass earnings limit legislation in 1995 outside 
of budget reconciliation, and send it to the President. On 
October 26, 1995, the House passed H. Con. Res. 109.
    On November 28, 1995, the Subcommittee on Social Security 
reported to the full Committee, as amended, draft legislation 
entitled the ``Senior Citizens' Right to Work Act of 1995.'' On 
November 29, 1995, Subcommittee on Social Security Chairman 
Bunning introduced H.R. 2684, the ``Senior Citizens' Right to 
Work Act of 1995,'' containing the provisions reported by the 
Subcommittee. A provision denying Supplemental Security Income 
(SSI) disability benefits based on addiction to drugs or 
alcohol that was contained in all previous House and Senate-
passed welfare reform bills, including those vetoed by the 
President on December 6, 1995, and January 9, 1996, was joined 
with an identical provision denying Social Security disability 
benefits based on addiction to drugs or alcohol, and included 
in H.R. 2684.
    On December 4, 1995, the Committee reported to the House 
H.R. 2684, as amended (H. Rept. 104-379). The legislation 
included a provision to increase the earnings limit to $30,000, 
which was offset by provisions to eliminate disability benefits 
based on alcoholism or addiction; base entitlement to 
stepchild's benefits upon actual dependency on the stepparent's 
support; delay post-retirement benefit recomputations; create a 
continuing disability revolving fund; eliminate Social Security 
Administration (SSA) involvement in payment of fees to 
attorneys; and create an enrollment period to allow members of 
the clergy to elect Social Security coverage. On December 5, 
1995, the House passed H.R. 2648.
    On March 21, 1996, Chairman Archer introduced H.R. 3136, 
the ``Contract with America Advancement Act'' (see section on 
the debt limit for additional description). Incorporated into 
H.R. 3136, as Title I, were the provisions of the ``Senior 
Citizens' Right to Work Act of 1996,'' which raised the 
earnings limit to $30,000 by 2002. The cost was offset by 
provisions eliminating entitlement to disability benefits based 
on alcoholism or addiction and basing entitlement to 
stepchild's benefits on actual dependency on the stepparent's 
support. It also included a provision to provide additional 
administrative funding of $2.67 billion from 1996-2002 to 
enable SSA to address the backlog of continuing disability 
reviews. On March 28, 1996, the House passed H.R. 3136, the 
``Contract with America Advancement Act.'' The President signed 
the bill into law on March 29, 1996 (P.L. 104-121).
    Title I of P.L. 104-121 contains the following Social 
Security provisions:
    Increase in the Social Security Earnings Limit: The 
legislation gradually raises the earnings limit for those of 
full retirement age (currently 65) to age 70 to $30,000 by the 
year 2002. The cost of this provision ($5.65 billion over 7 
years) is fully offset by savings within the Social Security 
system as described below. The increase is phased in from 
$12,500 in 1996 to $30,000 in 2002. Senior citizens of full 
retirement age (currently age 65) to age 70 who earn over the 
given earnings limit will continue to lose $1 in benefits for 
every $3 earned over the limit. After 2002, the annual exempt 
amounts will be indexed to growth in average wages. The 
substantial gainful activity (SGA) amount applicable to 
individuals under 65 who are eligible for disability benefits 
on the basis of blindness will no longer be linked to the 
earnings limit amount for those now age 65 to 70, but, as under 
prior law, continues to be wage-indexed in the future , and is 
projected to rise to $14,400 by 2002.
    Denial of Disability Benefits Based on Drug Addiction or 
Alcoholism: An individual will not be considered disabled for 
purposes of entitlement to cash Social Security and SSI 
disability benefits if drug addiction or alcoholism is the 
contributing factor material to his or her disability. 
Individuals with drug addiction or alcoholism who have another 
severe disabling condition (such as AIDS, cancer, cirrhosis) 
can qualify for benefits based on that disabling condition.
    If a person qualifying for benefits based on another 
disability is also determined to be an alcoholic or drug addict 
incapable of managing his or her benefits, a representative 
payee will be appointed to receive and manage the individual's 
checks. Recipients who are unable to manage their own benefits 
as a result of alcoholism or drug addiction will be referred to 
the appropriate State agency for substance abuse treatment 
services. For each of two years beginning with fiscal year 
1997, $50 million is authorized to fund additional drug and 
alcohol treatment programs and services. Generally, changes 
apply to benefits for months beginning on or after the date of 
enactment. However, an individual entitled to benefits before 
the month of enactment continues to be eligible for benefits 
until January 1, 1997.
    Entitlement of Stepchildren to Child's Benefits Based on 
Actual Dependency on Stepparent Support: The legislation 
requires that in all cases benefits would be payable to a 
stepchild only if it is established that the stepchild is 
dependent upon the stepparent for at least one-half of his or 
her financial support. In addition, benefits to the stepchild 
will be terminated if the stepchild's natural parent and 
stepparent are divorced. The dependency requirement is 
effective for stepchildren who become entitled or re-entitled 
to benefits three months after the month of enactment. In cases 
of a subsequent divorce occurring three months after enactment, 
benefits to stepchildren terminate one month after the divorce 
becomes final. Stepparents are required to notify SSA of the 
divorce. In addition, SSA is required to notify annually those 
potentially affected by this provision.
    Establishment of a Continuing Disability Review (CDRs) 
Authorization: An authorization to provide $2.67 billion in 
additional administrative funding to enable the SSA to increase 
CDRs is created. This provision exempts amounts spent for CDRs 
above the already assumed base funding levels from being 
subject to the discretionary spending caps through fiscal year 
2002. SSA will report annually on CDR expenditures and savings 
to the Social Security, SSI, Medicaid and Medicare programs.
    Other provisions: The new law also contains provisions 
providing for a Benefit and Contribution Statement pilot; 
additional staff for the Social Security Advisory Board, and 
codification of protections of Social Security and Medicare 
Trust Funds.

                       2. Disability legislation

    As a result of the disability oversight hearings held in 
1995, particularly the August 3, 1995, hearing, Subcommittee on 
Social Security Chairman Bunning introduced H.R. 4230, the 
``Rehabilitation and Return to Work Opportunity Act of 1996,'' 
on September 27, 1996, to help Social Security and SSI 
disability recipients who want to return to a life of financial 
independence and self sufficiency.
    Provisions would include permitting Social Security 
disability insurance (SSDI) and SSI recipients to choose 
whether to receive rehabilitation services from private, non-
profit or State rehabilitation providers, rather than 
restricting them to using only State vocational rehabilitation 
agencies for services. In addition, Medicare coverage would be 
continued for five years, and employers who hire SSDI or SSI 
disability recipients would be eligible for a one-year tax 
credit for the employer share of FICA taxes. No further action 
was taken on this legislation.

                  3. Other legislative action of note

a. Social Security miscellaneous amendments

    On July 25, 1996, the Subcommittee on Social Security 
reported to the full Committee draft legislation, the ``Social 
Security Miscellaneous Amendments Act of 1996,'' which included 
technical, clarifying or perfecting amendments relating to drug 
addicts and alcoholics, review of determinations by State 
Disability Determination Services, withholding from Social 
Security benefits; and extension of SSA disability insurance 
program demonstration project authority.
    On September 10, 1996, Subcommittee on Social Security 
Chairman Bunning introduced H.R. 4039, the ``Social Security 
Miscellaneous Amendments of 1996,'' which included provisions 
similar to those reported by the Subcommittee on Social 
Security on July 25. Also included were provisions that would 
further bar payment of Social Security retirement, survivors, 
and disability insurance benefits to prisoners that were 
similar to those affecting payment of SSI benefits that were 
included in the House-passed version of H.R. 3734, the 
``Personal Responsibility and Work Opportunity Reconciliation 
Act of 1996,'' which became law on August 22, 1996 (P.L. 104-
193). The provisions barring payment of Social Security 
benefits to prisoners were not included in the conference 
report on H.R. 3734 because of the Senate's concern over 
procedural rules against including Social Security provisions 
in a reconciliation bill (Sec. 310 g) of the Budget Impoundment 
and Control Act of 1974).
    On September 16, 1996, the Committee reported to the House 
H.R. 4039, without amendment (H. Rept. 104-786). On September 
17, 1996, the House passed the bill, as amended. No action was 
taken by the Senate.

b. Miscellaneous Social Security provisions in other legislation

            i. Small Business Job Protection Act
    H.R. 3448, the ``Small Business Job Protection Act of 
1996,'' included provisions that would treat crew members of 
fishing boats and persons engaged in the business of 
distributing newspapers or shopping news as self-employed for 
Social Security purposes effective January 1, 1994, and January 
1, 1996, respectively.
    In addition, H.R. 3448 reinstated a provision which expired 
January 1, 1995, allowing employer-provided educational 
assistance to be excluded for Social Security and income tax 
purposes for courses which began before January 1, 1997. The 
rental value of a parsonage and benefits from a church plan 
received by a retired member of the clergy would also be 
excluded from Social Security tax. The President signed H.R. 
3448 into law August 20, 1996 (P.L 104-188). (See the section 
on tax issues for a description of other provisions of this 
legislation.)
            ii. Welfare reform
    H.R. 3734, the ``Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996'' included a requirement 
that the Commissioner of Social Security develop a prototype of 
a counterfeit-resistant Social Security card made of durable, 
tamper-resistant material, providing security features, and 
providing individuals with reliable proof of citizenship or 
legal-resident alien status. In addition, H.R. 3734 requires 
the Commissioner to study and report on different methods of 
improving the Social Security card application process. The 
President signed H.R. 3734 into law on August 22, 1996 (P.L. 
104-193). (See Legislative Review of Human Resources Issues for 
a complete description of provisions in H.R. 3734 under the 
jurisdiction of the Social Security Subcommittee.)
            iii. Omnibus appropriations
    H.R. 3019, the ``Omnibus Consolidated Rescissions and 
Appropriations Act of 1996,'' contained two Social Security 
provisions. The first provides SSA and other Federal agencies 
with permanent debt collection authority. Individuals who are 
delinquent in repaying a government debt may have the debt 
administratively offset through any Federal benefit payments 
they currently receive. In addition to administratively 
offsetting the debt, SSA and other Federal agencies may report 
the delinquent debt to credit bureaus, use private collection 
agencies and assess late fees. The first $9,000 of an 
individual's annual Federal benefit payments are exempt from 
administrative offset in order to avoid unreasonable hardship 
in light of the dependence of those receiving Federal benefits.
    H.R. 3019 also requires that all recurring Federal 
payments, such as Social Security, be paid by electronic funds 
transfer (EFT) for all recipients newly entitled after August 
1, 1996. The head of each agency may waive the requirement for 
individuals who do not have a bank or payment agent. After 
January 1, 1999, all current and newly entitled Federal benefit 
recipients must be paid by EFT. The Secretary of the Treasury 
may waive the requirement in certain circumstances. The 
President signed H.R. 3019 into law on April 26, 1996 (P.L. 
104-134).
            iv. Immigration reform
    (See Legislative Review of Human Resources Issues for a 
description of the provisions under the jurisdiction of the 
Subcommittee on Social Security that were contained in the 
``Illegal Immigration Reform and Immigrant Responsibility 
Act,'' Division C of H.R. 3610 (P.L. 104-208)).

            F. Legislative Review of Human Resources Issues

                           1. Welfare reform

    A major focus of the Committee's legislative activity in 
the 104th Congress was consideration of welfare reform. A 
comprehensive welfare reform proposal, based on the Contract 
with America welfare reform plan, titled ``The Personal 
Responsibility Act of 1995'' was introduced by Subcommittee on 
Human Resources Chairman Shaw and Reps. Talent, and LaTourette 
on January 4, 1995. With the exception of provisions affecting 
food stamps and commodity distribution, all titles of this 
legislation were referred to the Committee.
    The full Committee held hearings on January 5, 10, 11, and 
12, 1995, on provisions of the Contract with America, including 
the Personal Responsibility Act. The Subcommittee on Human 
Resources followed with eight hearings on January 13, 20, 23, 
27, 30 and February 2, 3, and 6, 1995, on specific welfare 
reform proposals included in H.R. 4. On January 13, the 
Subcommittee received testimony from Governors John Engler of 
Michigan and Thomas Carper of Delaware, along with officials 
representing the U.S. Department of Health and Human Services 
and other experts. Witnesses described welfare spending, 
entitlement and State flexibility issues. On January 20, the 
Subcommittee heard from a variety of witnesses, including 
former recipients of Aid to Families with Dependent Children 
(AFDC), on the topic of illegitimacy. On January 23, the 
Subcommittee examined welfare-to-work programs. On January 27, 
the Subcommittee heard testimony about the SSI program, with a 
focus on benefits received by children, noncitizens, and drug 
addicts and alcoholics. On January 30, the Subcommittee heard 
testimony on a variety of welfare reform issues from more than 
40 public officials, including Governor Lawton Chiles of 
Florida, and from several representatives of faith-based 
groups. The Subcommittee continued to receive testimony from 
public officials and other interested parties on February 2, 
taking testimony from public officials and representatives of 
interested groups. On February 3, the Subcommittee held a joint 
hearing with the Subcommittee on Early Childhood, Youth, and 
Families of the Committee on Economic and Educational 
Opportunities, focusing on child care and child welfare issues. 
Witnesses, including Dr. Mary Jo Bane, Assistant Secretary for 
Children and Families of the U.S. Department of Health and 
Human Services, focused on the connection between adequate 
funding for child care and successful work programs. Finally, 
on February 6, the Subcommittee received testimony on the 
impact of child support enforcement provisions in the Personal 
Responsibility Act.
    On February 13, 14, and 15, 1995, the Subcommittee on Human 
Resources considered draft comprehensive welfare reform 
legislation based on the Personal Responsibility Act. On 
February 15, 1995, the Subcommittee reported to the full 
Committee the welfare reform measure.
    On March 15, 1995, the Committee reported to the House H.R. 
1157, the ``Welfare Transformation Act of 1995'' (H. Rept. 104-
81, Part I).
    Chairman Archer, along with Chairman Goodling of the 
Committee on Economic and Educational Opportunities, and 
Chairman Roberts of the Committee on Agriculture, subsequently 
introduced H.R. 1214 on March 13, 1995, representing the 
combined welfare reform provisions approved by each of the 
three committees. The text of H.R. 1214 was then incorporated 
into H.R. 4 and approved by the House on March 24, 1995.
    On September 19, 1995, the Senate passed H.R. 4 as amended 
and the conference began on H.R. 4. Also, on October 26, 1995, 
the House passed H.R. 2491, the ``Balanced Budget Act of 
1995,'' and the Senate passed it on October 28, 1995, both of 
which included comprehensive welfare reform proposals. The 
conference report on H.R. 2491 (H. Rept. 104-347) was passed by 
the Senate on November 17, 1995, and was passed by the House on 
November 20, 1995. The President vetoed the bill on September 
6, 1995.
    On December 21, 1995, the House passed the conference 
report on H.R. 4 (H. Rept. 104-430), and the Senate passed the 
conference report on December 22, 1995. The President vetoed 
H.R. 4 on January 9, 1996.
    These two welfare reform conference reports shared many 
common features: (1) a broad cash welfare block grant of $16.3 
billion per year for 5 years, with individual States receiving 
the higher of 1995, 1994, or the average of 1992-1994 AFDC 
funding; (2) a requirement that families on welfare work and 
that States meet performance-based work targets or lose Federal 
funds; (3) a limit on lifetime receipt of Federal cash welfare 
block grant benefits (5 years or less at State option); (4) 
help for States with growing populations and States 
experiencing recessions through the creation of a special 
population growth fund and contingency grant and loans funds; 
(5) flexibility for States to take steps to address out-of-
wedlock births, and rewards for States that promote family and 
marriage; (6) sweeping reforms of child support and paternity 
to increase collections from absent parents; (7) added funds 
and flexibility for child care to permit parents to leave 
welfare for work; (8) child nutrition program reforms and 
greater State flexibility in their operation; (9) reservation 
of most welfare benefits for citizens and noncitizens who had 
worked, served in the military, or recently entered the U.S. as 
political refugees; (10) reforms of the food stamp program 
requiring work for benefits and curbing illegal trafficking; 
(11) reforms of the SSI children's disability program to 
prevent abuse and focus benefits on the most severely disabled 
children; and (12) a new child protection block grant allowing 
States to intervene before children were abused. In all, the 
provisions would save an estimated $58 billion over 7 years, FY 
1996-2002 (the savings reflected the difference in expected 
Federal spending resulting from slowing spending growth on 
affected programs from 7 percent to 4 percent per year).
    The most significant differences between the welfare reform 
provisions in the two bills resulted from the restrictions 
imposed by the ``Byrd Rule'' in the Senate on reconciliation 
bills such as H.R. 2491. Thus, several major provisions 
included in the conference report on H.R. 4 were excluded from 
the Balanced Budget Act because of the ``Byrd Rule'': the 
family cap policy; new rules allowing charitable and religious 
providers to play an expanded role in welfare programs; new 
rules requiring organizations to disclose receipt of Federal 
funds under certain circumstances; the repeal of maintenance of 
effort requirements for State supplements to SSI; certain child 
support provisions; provisions authorizing States to limit 
State and local welfare benefits for noncitizens; and 
provisions authorizing certain discretionary child protection 
funds. H.R. 4 also did not include changes in the EIC that 
would have resulted from the Balanced Budget Act.
    On May 10, 1995, the Subcommittee on Human Resources held a 
hearing on Federal adoption policy. The Subcommittee received 
additional testimony on the Federal Child Support Enforcement 
and SSI programs on June 13, 1995. Finally, on December 6, 
1995, the Subcommittee held a hearing on welfare reform success 
stories, focusing on welfare reform programs nationwide that 
achieved success in reducing dependence, promoting work, and 
collecting child support for needy children.
    On February 20, 1996, the Subcommittee on Human Resources 
renewed action on welfare reform by holding a hearing on a 
welfare reform proposal developed by the Nation's governors. 
Testimony was heard from Governors Thompson of Wisconsin and 
Carper of Delaware. On March 12, 1996, the Subcommittee held a 
hearing examining the causes of poverty, with a focus on out-
of-wedlock births, featuring the views of several Members of 
Congress, policy experts, and representatives of faith-based 
organizations.
    In March 1996, the President presented to Congress his 
budget proposal for fiscal year 1997, which included a new 
welfare reform proposal. This proposal was the subject of a 
Subcommittee on Human Resources hearing on May 22, 1996. The 
same day, Chairman Archer introduced a new comprehensive 
welfare reform proposal, H.R. 3507, the ``Personal 
Responsibility and Work Opportunity Act of 1996.'' This 
legislation followed the legislative recommendations of the 
Nation's governors, proposing comprehensive reforms of the 
Medicaid program as well as the welfare-related programs 
included in earlier bills. On May 23, 1996 the Subcommittee 
held a hearing on H.R. 3507, including its provisions on moving 
families into work, SSI, child support, and benefits for 
noncitizens.
    Relative to the vetoed H.R. 4, there were a number of 
changes in H.R. 3507: States had greater flexibility in 
choosing whether to adopt a family cap policy; funding was 
provided for performance bonuses for State success in achieving 
program goals; an additional $1 billion was added to the 
previous $1 billion contingency grant fund for coping with 
economic downturns; more job search was allowed and the 
required hours of work per week were reduced from 35 to 25; 
additional exemptions from the 5-year time limit on benefits 
were allowed; the effective date and onset of penalties was 
delayed until July 1, 1997; equal SSI benefits were provided to 
all eligible children, removing the former two-tiered benefits 
structure; added funding for child support data systems was 
included; the open-ended entitlements for administration and 
training for both foster care and adoption assistance were 
retained, and the Independent Living Program was restored as a 
separate entitlement; and $4 billion in entitlement funding to 
States for child care was added, with additional funds matched 
by States at their Medicaid matching rate.
    The Subcommittee on Human Resources considered budget 
reconciliation welfare recommendations (based on H.R. 3507), 
and on June 10, 1996, reported them to the full Committee. On 
June 12, 1996, the Committee ordered reported to the Committee 
on the Budget its budget reconciliation welfare 
recommendations.
    On June 27, 1996, the Committee on the Budget reported an 
original measure to the House, H.R. 3734, the ``Personal 
Responsibility, Work Opportunity, and Medicaid Restructuring 
Act of 1996,'' (H. Rept. 104-651) which combined the budget 
reconciliation welfare reform provision reported by the various 
committees.
    H.R. 3829, the ``Welfare Reform Reconciliation Act of 
1996,'' represented the provisions of H.R. 3734 without the 
comprehensive Medicaid reform provisions. On July 18, 1996, the 
House passed H.R. 3734, as amended with an amendment in the 
nature of a substitute consisting of the text of H.R. 3829. On 
July 23, 1996, the Senate passed H.R. 3734, as amended. On July 
31, 1996, the House passed the conference report on H.R. 3734 
(H. Rept. 104-725), and the Senate passed it on August 1, 1996. 
The President signed the bill into law on August 22, 1996 (P.L. 
104-193).

a. Implementation of welfare reform and other issues

    Prior to final passage of the new welfare reform law, on 
July 30, 1996, the Subcommittee on Human Resources held a joint 
hearing with the Subcommittee on Early Childhood, Youth and 
Families of the Committee on Economic and Educational 
Opportunities to examine H.R. 3467, the ``American Community 
Renewal Act of 1996.'' The Subcommittee considered proposals 
that would complement welfare reform by spurring charitable 
giving, community involvement, and economic development in 
impoverished areas, which several Members described as areas of 
further investigation for the Subcommittee during the 105th 
Congress. No action was taken on these proposals.
    The Subcommittee on Human Resources held hearings on 
September 17 and 19, 1996 on implementation of the new welfare 
reform law. Invited witnesses discussed the activities 
undertaken by the U.S. Department of Health and Human Services, 
the Nation's governors, State legislators, and state welfare 
program directors to implement the new block grant program; 
witnesses also discussed state efforts to make the new child 
support program operational, and its potential impact on 
children and families.
    Before the close of the 104th Congress, several technical 
and other modifications were made to the welfare reform law 
through provisions included in the conference report 
accompanying H.R. 3610, ``Making Omnibus Consolidated 
Appropriations for Fiscal Year 1997'' (H. Rept. 104-863). This 
legislation: provided funding for child support technical 
assistance; specified the research funds available to the 
Secretary of Health and Human Services on welfare issues; 
preserved electronic benefit transfer pilot programs already 
under way in certain States; and allowed all States, regardless 
of when they opt into the new welfare block grant program, 
access to contingency funds designed to assist States with 
growing welfare needs. The President signed the bill into law 
on September 30, 1996 (P.L. 104-208).

b. Technical corrections to the personal responsibility and work 
        opportunity S. 2183

    Near the end of the 104th Congress, the House approved S. 
2183, a bill making technical corrections to the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996. 
S. 2183 allows all States, regardless of when they opt into the 
new welfare block grant program, access to contingency funds 
designed to assist States with growing welfare needs. The new 
welfare law restricts federal payments to States in fiscal year 
1997 to their block grant amount, even though States may begin 
operating their block grant program as late as July 1, 1997 
(continuing the AFDC program until then). States that have 
experienced caseload increases since the setting of the block 
grant amount could experience a funding shortfall during the 
transition to the new program, a situation not foreseen in the 
original welfare reform law. According to the Congressional 
Budget Office, the bill has no cost. In addition, the bill does 
not change the way States qualify for contingency funds--any 
State that qualifies can access a share of the fund.
    S. 2183 was passed by the Senate, amended, on October 1, 
1996, and passed the House on October 4, 1996. the President 
signed the bill into law on October 19, 1996 (P.L. 104-327).

                    2. supplemental security income

    In addition to the actions associated with welfare reform 
described above, the Committee approved legislation that 
restricted SSI benefits for drug addicts and alcoholics as part 
of H.R. 3136, the ``Contract with American Advancement Act'' 
(see Social Security Section, above).

                          3. child protection

    The Committee considered legislation removing barriers to 
interracial adoption (H.R. 3286, the ``Adoption Promotion and 
Stability Act of 1996''). This legislation amended the Social 
Security Act to prohibit a State or other entity that receives 
Federal assistance from denying to any person the opportunity 
to become an adoptive or a foster parent on the basis of the 
race, color, or national origin of the person or of the child 
involved. Similarly, no State or other entity received Federal 
funds can delay or deny the placement of a child for adoption 
or foster care on the basis of the race, color, or national 
origin of the adoptive or foster parent or of the child 
involved.
    On May 3, 1996, the Committee reported to the House H.R. 
3286, as amended (H. Rept. 104-542, Part II). On May 10, the 
House passed the bill. The interethnic adoption provision of 
H.R. 3286 also passed the House as part of welfare reform in 
H.R. 4, H.R. 2491, and H.R. 3734. The provision was deleted 
from the final conference report accompanying H.R. 3734, due to 
the ``Byrd Rule.'' However, the provision was added to H.R. 
3448, the ``Small Business Job Protection Act of 1996,'' which 
the President signed into law on August 20, 1996 (Public Law 
104-188).
    On June 27, 1996, the Human Resources Subcommittee held a 
hearing on issues related to removing barriers to adoption, 
especially the requirement that ``reasonable efforts'' be made 
to keep children with their parents prior to the placement of a 
child in foster care. Several witnesses testified that the way 
the current law ``reasonable efforts'' provision is being 
interpreted and implemented by many States is itself a barrier 
to adoption.

                      4. benefits for noncitizens

    In addition to the changes made by the welfare reform law 
that affect benefits for noncitizens, several changes were made 
in the conference report to H.R. 3610, ``Making Omnibus 
Consolidated Appropriations for Fiscal Year 1997,'' (H. Rept. 
104-863) which the President signed into law on September 30, 
1996 (P.L. 104-208).
    Exception to ineligibility for public benefits for certain 
battered aliens. Certain ``battered aliens'' who, under 
provisions of the new welfare reform law were treated as 
illegal aliens and therefore ineligible from almost all Federal 
and State public benefits, would instead be treated as 
``qualified aliens'' and therefore subjected to lesser welfare 
benefits denials/restrictions only.
    Ineligibility of aliens not lawfully present for Social 
Security benefits. Instead of denying Social Security 
applications filed after August 1996 by aliens illegally 
present in the U.S. (as provided in the new welfare reform 
law), the ineligibility of illegal aliens for Social Security 
benefits will start with applications filed in December 1996 or 
later.
    Verification of immigration status for purposes of Social 
Security and higher educational assistance. This provision 
requires States to transmit copies of certain documents 
specified by the Immigration and Naturalization Service for 
verification under the Income and Eligibility Verification 
System (IEVS).
    No verification requirement for nonprofit charitable 
institutions. This provision exempts nonprofit charitable 
organizations that provide Federal, State or local public 
benefits from having to determine the (in) eligibility of 
recipients based on alienage.
    GAO study on provision of means-tested public benefits to 
aliens who are not qualified aliens on behalf of eligible 
individuals. GAO must report within 180 days on the extent to 
which means-tested public benefits are being paid to ``non-
qualified'' (illegal) aliens on behalf of legal aliens or 
citizens. This provision applies primarily to illegal alien 
parents receiving welfare benefits of a child born in the 
United States who is therefore a citizen.
    Transition for aliens currently receiving benefits under 
the Food Stamp program. This provision creates a longer 
transition for noncitizens who would lose eligibility (some 
beginning immediately) for food stamps as a result of the 
welfare reform law, thereby guaranteeing noncitizens continued 
benefits until at least April 1, 1997. All affected noncitizens 
will still lose eligibility for welfare benefits by no later 
than August 22, 1997, as provided under the welfare reform law.
    Social Security-related changes. P.L. 104-208 set new 
requirements for the issuance and use of driver's licenses. 
Federal agencies will no longer accept as identification any 
driver's license unless the State has issued the license in 
accordance with regulations set forth by the Secretary of 
Transportation. Also, the license must incorporate security 
features designed to limit counterfeiting and display the 
Social Security number unless the State requires that the 
Social Security number be submitted as part of the application 
process. Also, the legislation requires the Commissioner of 
Social Security to develop a prototype of a counterfeit-
resistant Social Security card that is durable, employs 
security features, and provides individuals with reliable proof 
of citizenship or legal resident alien status. The Commissioner 
and the Comptroller General each are to study and report to 
Congress on methods to improve the Social Security card 
application process. The studies are to evaluate cost and 
workload implications of issuing counterfeit-resistant cards 
for all individuals over a 3-, 5-, and 10-year period. The 
studies must also evaluate the feasibility and cost 
implications of imposing a user fee for replacement cards.

                        5. earned income credit

    The Committee considered changes to the EIC program. See 
the discussion above under Legislative Review of Budget 
Reconciliation: Balanced Budget Act, as well as the description 
of H.R. 3734, (P.L. 104-193). In summary, the new welfare 
reform law denied the EIC to persons who are unauthorized to 
work in the United States, changed the amount and definition of 
disqualified income, revised the calculation of adjusted gross 
income for purposes of the EIC phaseout, and authorized the IRS 
to use math error procedures when returns do not include 
correct taxpayer identification numbers and in cases in which 
self-employment taxes are not paid by EIC filers, generally 
effective for tax years after 1995.

                  G. Legislative Review of Debt Issues

    In addition to the long-term increase in the public debt 
limit contained in H.R. 2491 (see Legislative Review of Budget 
Reconciliation: Balanced Budget Act, above) and H.R. 3136, the 
``Contract with America Advancement Act,'' the Committee 
considered several other measures related to the public debt. 
Two temporary changes in borrowing authority were signed into 
law prior to the permanent extension contained in H.R. 3136, 
which was enacted in March 1996.
    On November 7, 1995, the Committee reported to the House 
H.R. 2586 (H. Rept. 104-325) to provide a temporary increase in 
the public debt limit from $4.9 trillion to $4.967 trillion for 
the period through December 2, 1995. The debt limit would 
revert back to the level of $4.8 trillion after that date. H.R. 
2586, as amended, passed the House and Senate on November 9, 
1995. The House agreed to the Senate amendment on November 10, 
1995. The President vetoed the bill on November 13, 1995.
    On November 14, 1995, the House failed to pass on the 
suspension calendar H.R. 2621, a bill to enforce the public 
debt limit and other purposes. The same measure, with an 
amendment, was considered by the House and passed on December 
14, 1995. No further action occurred on this legislation.
    On February 1, 1996, the House passed H.R. 2924, a bill to 
provide for sufficient borrowing authority to ensure the 
payment of Social Security benefits during March 1996. The bill 
passed the Senate the same day and the President signed the 
bill into law on February 8, 1996 (P.L. 104-103).
    On March 7, 1996, the House passed H.R. 3021, as amended, 
to guarantee the continued full investment of Social Security 
and other Federal funds in obligations of the United States. 
The Senate passed the bill the same day, and the President 
signed the bill into law on March 12, 1996 (P.L. 104-115).
    On March 28, 1996, the House passed H.R. 3136, the 
``Contract With America Advancement Act,'' which contained a 
permanent increase in the statutory debt limit to $5.5 
trillion. The Senate passed the bill the same day and the 
President signed the bill into law on March 29, 1996 (P.L. 104-
121).

                          II. Oversight Review

                          A. Oversight Agenda

                       Committee on Ways and Means,
                             U.S. House of Representatives,
                                  Washington, DC, February 8, 1995.
Hon. William F. Clinger, Jr.,
Chairman, Committee on Government Reform and Oversight, Rayburn House 
        Office Building, Washington, DC.

Hon. William M. Thomas,
Chairman, Committee on House Oversight, Longworth House Office 
        Building, Washington, DC.
    Dear Chairman Clinger and Chairman Thomas: In accordance 
with the requirements of Clause 2 of Rule X of the Rules of the 
House, the following is a list of programs within the 
jurisdiction of the Committee on Ways and Means for which the 
Committee anticipates it will conduct oversight activities 
during the 104th Congress, as the Committee's schedule permits. 
The list has been broken down by Subcommittee and prioritized 
to reflect the likely order in which these activities are 
expected to occur.

                         Subcommittee on Trade

    1. Hearing to examine the U.S. Customs Service 
reorganization plan (held on January 30, 1995).
    2. Hearing to examine issues relating to NAFTA parity for 
Caribbean Basin Initiative countries (to be held on February 
10, 1995).
    3. Hearing to review the status of negotiations relating to 
China's accession to the World Trade Organization (WTO). 
Spring, 1995.
    4. Hearing to examine current law requirements governing 
most-favored nation status for non-market economies and 
possible alternatives for updating the application of the law 
with respect to China. Spring, 1995.
    5. Hearing to examine the effectiveness of the Trade 
Adjustment Assistance (TAA) program and the effects of 
international trade on employment and job creation. Spring, 
1995.
    6. Hearing to examine the status of NAFTA implementation; 
emerging problems with Mexico. Spring, 1995.
    7. Hearing to examine U.S.-Japan bilateral relations. 
Summer, 1995.
    8. Hearing to follow up on the Summit for America and the 
Asia-Pacific Economic Cooperation (APEC) summit. Spring/Summer, 
1995.
    9. Hearing to examine benefits/problems associated with 
free trade areas (FTAs). Summer, 1995.
    10. Hearing on trade and competition policy, and trade and 
investment. Summer, 1995.
    11. Hearing to examine the economic relationship between 
the U.S. and Cuba. Late 1995 or early 1996.
    12. Hearing to examine linkages between trade laws and the 
environment and international labor standards. Early 1996.

                       Subcommittee on Oversight

    1. Hearing to examine the effectiveness of current federal 
child welfare and foster care programs (held on January 23, 
1995).
    2. Hearing to examine the Federal Communications 
Commission's administration of Internal Revenue Code section 
1071 (held on January 27, 1995).
    3. Hearing to review the Administration's FY 1996 budget 
request for the Internal Revenue Service (IRS), the U.S. Tax 
Court and the Bureau of Alcohol, Tobacco, and Firearms. The 
hearing will focus on evaluation of the progress of and future 
funding requirements for the IRS's Tax Systems Modernization 
(TSM) program. Tentatively scheduled for late February, 1995.
    4. Hearing on the 1995 tax return filing season, to examine 
the accuracy and availability of IRS's taxpayer telephone 
assistance, IRS's efforts to identify and reduce tax return 
preparation fraud and processing errors, and specific focus on 
electronic filing fraud. Tentatively scheduled for late 
February, 1995.
    5. Hearing to examine the IRS's planned Tax Compliance 
Measurement Program (TCMP) audits. Spring, 1995.
    6. Hearing to receive testimony from the General Accounting 
Office and Inspectors Generals from the Departments of 
Treasury, Labor and Health and Human Services to receive 
updates on their analyses of the Fraud and abuse ``high risk'' 
areas in programs under the Committee's jurisdiction. Spring, 
1995.
    7. Hearing to review IRS enforcement of federal tax laws 
relating to employment taxes and independent contractors. 
Spring, 1995.
    8. Hearing (possibly to be held jointly with the 
Subcommittee on Trade) to review implementation of the NAFTA 
and WTO; international dispute resolution mechanisms; and 
compliance with existing bilateral tax and trade agreements. 
Spring, 1995.
    9. Hearing to monitor the operation of the Social Security 
Administration, including issues relating to caseload 
management and adequacy of beneficiary services. Summer 1995.
    10. Oversight Project. Comprehensive review of the 
compliance burden imposed by the federal tax laws for purposes 
of developing tax simplication legislation. Summer, 1995.
    11. Hearing to examine expiring tax provisions including, 
among others, the research and development tax credit, the 
targeted jobs tax credit, and the exclusion for employer-
provided educational expenses (expired). Summer, 1995.
    12. Hearing to review the operation and administration of 
the Hazardous Substance Superfund. Summer, 1995.
    13. Hearing to examine suggestions from the public and 
practitioners for provisions to include in a Taxpayer Bill of 
Rights II, to be followed by development of legislation. 
Summer, 1995.
    14. Hearing to examine current laws regarding liability for 
and the IRS's enforcement and collection of federal excise 
taxes on diesel fuel. Summer, 1995.
    15. Hearing to examine Subchapter S issues and proposals 
for reform. Summer, 1995.
    16. Hearing to examine miscellaneous bills and proposals 
for technical and conforming changes to the tax code. Fall, 
1995.
    17. Hearing to review provisions in the tax laws relating 
to tax-exempt municipal financing, including review of the 
restrictions imposed in the Tax Reform Act of 1986 and 
subsequent amendments, and potential problems associated with 
privatizing public facilities financed with municipal bonds. 
Fall, 1995.
    18. Hearing to examine noncompliance with the tax laws 
applicable to public charities and other tax-exempt 
organizations (TEOs), and the IRS's enforcement of those laws. 
Late 1995.
    19. Hearing (possibly to be held jointly with the 
Subcommittee on Health) to examine Medicare waste, fraud and 
abuse issues. Late 1995/Early 1996.
    20. Hearing (possibly to be held jointly with the 
Subcommittee on Health) to examine implementation and 
enforcement of Physician Self-Referral anti-fraud and abuse 
measures, and issues relating to activities of physician-owned 
facilities and managed care companies. Late 1995/Early 1996.
    21. Hearing to review miscellaneous pension issues, 
including the financial condition of federal, state and local 
government pension systems and the complexity of existing 
statutory and regulatory requirements on qualified public and 
private plans and their effect on private savings. Late 1995/
Early 1996.
    22. Hearing (possibly to be held jointly with the 
Subcommittee on Trade) to monitor operations of the U.S. 
Customs Service, including matters involving commercial 
operations and enforcement. Early 1996.
    23. Field investigations generally, and as necessary under 
the Subcommittee on Oversight's authority under section 6103 of 
the Internal Revenue Code to review confidential tax return 
information for purposes of evaluating compliance with the tax 
laws and investigating allegations of tax evasion and schemes 
to defraud the nation's taxpayers.
    24. Field hearings on issues to be determined, for the 
purpose of providing members of the public with input into the 
Congressional oversight process.

                    subcommittee on human resources

    1. Hearing to examine the growth of spending on means-
tested programs and the role of entitlements in this growth 
(held on January 23, 1995).
    2. Hearing to examine historical changes in the rates of 
illegitimacy and the role illegitimacy has played in the growth 
of the welfare rolls (held on January 20, 1995).
    3. Hearing to examine evidence regarding the length of 
stays on welfare and the effectiveness of programs that provide 
education, training, job search and work experience in helping 
families leave welfare (held on January 23, 1995).
    4. Hearing to examine fraud and abuse in the Supplemental 
Security Income (SSI) program and proposals for reforming 
benefits (held on January 27, 1995).
    5. Hearing (held jointly with Subcommittee on Each 
Childhood, Youth and Families of the Committee on Economic and 
Educational Opportunities) to examine child care and child 
welfare issues (held on February 3, 1995).
    6. Hearing to examine possible reforms to the federal child 
Support Enforcement program (held on February 6, 1995).
    7. Hearing (to be held jointly with the Subcommittee on 
Oversight) to examine welfare waste, fraud and abuse issues and 
possible measures to address fraud and abuse. Summer, 1995.
    8. Hearing (to be held jointly with the Subcommittee on 
Oversight) to examine Supplemental Security Income (SSI) waste, 
fraud and abuse issues and possible measures to address fraud 
and abuse. Summer, 1995.
    9. Hearing (possibly to be held jointly with the 
Subcommittee on Oversight) to examine program trends under the 
federal Child Support Enforcement (CSE) program. Fall, 1995.
    10. Hearing to examine current laws relating to 
unemployment compensation and possible reforms. Fall, 1995.

                         Subcommittee on Health

    1. Hearing to examine areas of extraordinary growth in 
Medicare and the potential causes for such growth (held 
February 6,1995).
    2. Hearing to examine innovations in Medicare, including 
oversight of Medicare risk contract HMOs and Medicare Select 
(to be held on February 10, 1995).
    3. Hearing to examine the administration of Medicare 
policies by the Health Care Financing Administration (HCFA). 
Spring, 1995.
    4. Hearing to examine current law hospital and physician 
payment policies under Medicare Parts A and B. Spring, 1995.
    5. Hearing to examine current law policies relating to 
payment for graduate medical education under Medicare Part A. 
Spring/Summer, 1995.
    6. Hearing to examine issues relating to Medicare 
intermediaries and carriers, including implementation of the 
Medicare transaction systems and funding for payment 
safeguards. Spring/Summer, 1995.
    7. Hearing on Medicare Peer Review organizations. Spring/
Summer, 1995.

                    Subcommittee on Social Security

    1. Hearing to examine implementation of the Social Security 
Independence and Program Improvement Act, including an 
examination of the advisory and oversight role of the Social 
Security Advisory Board. Spring, 1995.
    2. Hearing to examine the Social Security Administration's 
proposals for reengineering the Social Security Disability 
Insurance (SSDI) program. Summer, 1995.
    3. Hearing to examine SSDI Continuing Disability Review 
issues. Summer, 1995.
    4. Hearing to examine SSDI service delivery issues. Summer, 
1995.
    5. Hearing to examine SSDI caseload backlogs. Summer, 1995.
    6. Hearing to examine continuing problems with deceptive 
mailings to senior citizens. Fall, 1995.

                             Full Committee

    In late 1995 or early 1996, the Committee anticipates that 
it will begin a series of hearings for the purpose of 
conducting a comprehensive examination of the current federal 
income tax code and proposals for fundamental tax reform.

              Additional and Ongoing Monitoring Activities

    The Committee on Ways and Means anticipates that additional 
oversight activities will be scheduled in 1995 and 1996. This 
list is not intended to be exclusive; accordingly, the 
Committee will conduct hearings and site inspections on issues 
as they arise. In addition, several of the Committee's 
Subcommittees conduct ongoing monitoring of programs and 
agencies within the Committee's jurisdiction. For example, the 
Subcommittee on Oversight conducts ongoing monitoring 
activities to examine laws, programs and agencies under the 
Committee's jurisdiction, such as the Internal Revenue Service, 
U.S. Customs, the Bureau of Alcohol, Tobacco and Firearms, the 
Department of Health and Human Services (including the Health 
Care Financing Administration), the Social Security 
Administration, and the Department of Labor, including the 
Pension benefit Guaranty Corporation.
    In preparing this report, the staff of the Committee on 
Ways and Means has consulted with staff from the Committee on 
Commerce and the Committee on Economic and Educational 
Opportunities about the possibility of holding joint hearings 
where appropriate on programs over which the Committees share 
jurisdiction.
            Sincerely,
                                               Bill Archer,
                                                          Chairman.
                                ------                                

                       Committee on Ways and Means,
                                  House of Representatives,
                                 Washington, DC, February 10, 1995.
Hon. William F. Clinger, Jr.,
Chairman, Committee on Government Reform and Oversight, House of 
        Representatives, Rayburn House Office Building, Washington, DC.

Hon. William M. Thomas,
Chairman, Committee on House Oversight, House of Representatives, 
        Longworth House Office Building, Washington, DC.
    Dear Chairman Clinger and Chairman Thomas: We are writing 
with regard to approval by the Committee on Ways and Means, on 
February 8, 1995, of the Committee's oversight agenda for the 
104th Congress pursuant to House Rule X.
    As the Committee agreed, we are providing you with our 
companion views in connection with the Committee's planned 
agenda.
    We ask that the attached statement be included accordingly.
            Sincerely yours,
                                   Robert T. Matsui,
                                           Ranking Democrat, 
                                               Subcommittee on 
                                               Oversight.
                                   Sam M. Gibbons,
                                           Ranking Democrat.
    Attachment.

   Views of the Honorable Sam M. Gibbons and the Honorable Robert T. 
  Matsui on the Committee on Ways and Means Oversight Agenda for the 
                             104th Congress

    As the Committee on Ways and Means moves forward during the 
104th Congress, we believe it is important that the oversight 
activities of the Committee be thoroughly and aggressively 
undertaken. It is important that all major areas of the 
Committee's jurisdiction be subject to oversight review by the 
Committee over the next two years. This is necessary to insure 
that the broad range of laws this Committee has developed are 
being properly administered by our Federal agencies, and that 
the underlying goals and purposes are being met. It is critical 
that, as the Committee's legislative priorities proceed, the 
importance of oversight is not lost.
    In conducting oversight of issues involving the tax, trade, 
health, social security, human resource and other laws under 
the Committee's jurisdiction, we must make sure that the 
Committee's oversight efforts go beyond merely soliciting 
hearing testimony and accepting it ``on its face'' as complete 
and conclusive. Meaningful oversight requires very time-
consuming and extensive research, field investigations, and 
documentation requests and analyses. Also, the Committee's 
oversight efforts must include matters which cut-across various 
aspects of the Committee's jurisdiction and involve overlapping 
Federal agency programs. We urge the Committee leadership to 
adopt such a comprehensive approach.
    During the 103rd Congress, for example, the Subcommittee on 
Oversight investigated issues relating to abuse by tax-exempt 
organizations, tax refund fraud, abusive insurance sales 
practices involving the earned income tax credit, 
administration of the Superfund, underfunding of pension plans 
insured by the Federal Government, lack of coordination between 
IRS and Customs in valuing imports, and welfare fraud. Each of 
these oversight efforts required months of research and staff 
field investigative work, as well as extensive demands for 
documents. These oversight activities served as the basis for 
the Subcommittee hearings and ``good government'' reforms which 
followed. Importantly, this effort provided the public, 
Committee, and Congress with fundamental information and 
analyses which otherwise did not exist. Following its 
investigations and hearings, the Subcommittee routinely and on 
a bipartisan basis approved reports to the full Committee which 
contained recommendations for legislative and administrative 
reform. This process proved to be very effective and should be 
continued.
    We urge that the Committee leadership develop a specific 
plan for the 104th Congress to implement true oversight of the 
programs under the Committee's jurisdiction. This should 
include an analysis of the amount and type of staff resources 
needed to accomplish such a goal, and an end-of-the-year report 
to the Committee Members describing the tangible results of the 
Committee's oversight activities.

  B. Actions Taken and Recommendations Made With Respect to Oversight 
                                  Plan

    Subcommittee on Trade--Comparison of oversight plan 
developed in January 1995 to actual activities of the 
Subcommittee during the 104th Congress:
    1. Hearing to examine the U.S. Customs Service 
reorganization plan.
    Action taken: The Subcommittee hearing was held on January 
30, 1995. Testimony taken helped form the basis of legislation 
considered by the Committee to authorize operations for the 
Customs Service and for action related to general oversight of 
the Customs Service.
    2. Hearing to examine issues relating to NAFTA parity for 
Caribbean Basin Initiative countries.
    Action taken: The Subcommittee hearing was held on February 
10, 1995. Testimony taken helped form the basis for 
consideration of H.R. 553, the ``Caribbean Trade Security 
Act.''
    3. Hearing to review the status of negotiations relating to 
China's accession to the WTO.
    Action taken: Subcommittee hearings were held on March 9, 
1995, and June 11, 1996. Testimony taken at the hearing helped 
form the basis for consideration of whether legislative efforts 
with respect to China would be appropriate, including extension 
of most-favored-nation treatment. The June 11 hearing also 
addressed the issue to Taiwan's accession to the WTO.
    4. Hearing to examine current law requirements governing 
most-favored-nation status for non-market economies and 
possible alternatives for updating the application of the law 
with respect to China.
    Action taken: Subcommittee hearings were held on May 23, 
1995, and June 11, 1996. In addition, the Subcommittee 
requested public comment on July 16, 1996, concerning changes 
in the terminology ``most-favored-nation'' treatment. Testimony 
at the hearings and public comment helped form the basis of 
action by the Committee to report out adversely in 1995 and 
1996 legislation that would disapprove the extension of most-
favored-nation treatment to China.
    5. Hearing to examine the effectiveness of the Trade 
Adjustment Assistance (TAA) program and the effects of 
international trade on employment and job creation.
    Action taken: The Subcommittee hearing on workforce 
education and training was held on July 25, 1996. In addition, 
the Human Resources Subcommittee held a hearing on the 
consolidation of job training programs held on May 16, 1995. 
Testimony at the hearings formed the basis of Committee 
recommendations to the Committee on the Budget concerning 
modifications to the TAA program, which were included in the 
House-passed version of H.R. 2491, the ``Balanced Budget Act of 
1995.''
    6. Hearing to examine the status of NAFTA implementation; 
emerging problems with Mexico.
    Action taken: The Subcommittee hearing concerning the 
accession of Chile to the NAFTA was held on June 21, 1995. The 
Subcommittee hearing on H.R. 2822, concerning safeguard 
treatment of perishable agricultural products, including 
tomatoes from Mexico, was held on April 25, 1996. Testimony at 
the hearings assisted the Committee in its consideration of the 
extension of fast track trade agreement authority (H.R. 2371), 
Chile's accession to the NAFTA, and H.R. 2822.
    7. Hearing to examine United States-Japan bilateral 
relations.
    Action taken: The Subcommittee hearing was held on March 
28, 1996. Testimony at the hearing assisted the Subcommittee in 
its oversight responsibilities concerning bilateral relations 
with Japan.
    8. Hearing to follow up on the Summit of the Americas and 
the Asia-Pacific Economic Cooperation (APEC) summit.
    Action taken: The Subcommittee hearing concerning the 
accession of Chile to the NAFTA was held on June 21, 1995. A 
Subcommittee field hearing on U.S. trade policy was held on May 
20, 1996, in Schaumburg, Illinois. Testimony received at the 
hearings assisted the Committee in its consideration of 
legislation to extend fast track trade agreement authority 
(H.R. 2371) and in its responsibilities concerning trade 
policy. In addition, the Subcommittee undertook a trade mission 
to Costa Rica, Chile, and Argentina in order to gather 
information relevant to the Committee's consideration of issues 
relating to the extension of fast track, Chilean accession to 
the NAFTA, and the Summit of the Americas.
    9. Hearing to examine benefits/problems associated with 
free trade areas (FTAs).
    Action taken: The Subcommittee hearing concerning the 
accession of Chile to the NAFTA was held on June 21, 1995. 
Testimony received at the hearing assisted the Committee in its 
consideration of legislation to extend fast track trade 
agreement authority (H.R. 2371) and in its responsibilities 
concerning trade policy. In addition, the Subcommittee 
undertook a trade mission to Costa Rica, Chile, and Argentina 
in order to gather information relevant to the Committee's 
consideration of issues relating to the extension of fast 
track, Chilean accession to the NAFTA, and the Summit of the 
Americas.
    10. Hearing on trade and competition policy, and trade and 
investment.
    Action taken: The Subcommittee hearing on the WTO was held 
on March 13, 1996. Testimony taken at the hearing assisted the 
Committee in its responsibilities concerning a number of 
Congressional initiatives on WTO policy and oversight of 
Administration activity concerning the WTO.
    11. Hearing to examine the economic relationship between 
the United States and Cuba.
    Action taken: The Subcommittee hearing was held on June 30, 
1995. Testimony taken at the hearing helped to form the basis 
for Committee action concerning H.R. 927, the ``Cuban Liberty 
and Democratic Solidarity Act of 1995.''
    12. Hearing to examine linkages between trade laws and the 
environment and international labor standards.
    Action taken: The Subcommittee hearings on fast track 
authority were held on May 11 and 17, 1995. Subcommittee 
hearing on the WTO was held on March 13, 1996. Testimony taken 
at the fast track hearings helped form the basis of Committee 
action with respect to the extension of fast track agreement 
authority (H.R. 2371). Testimony taken at the WTO hearing 
assisted the Committee in its responsibilities concerning a 
number of Congressional initiatives on WTO policy and oversight 
of Administration activity concerning the WTO.
    Subcommittee on Oversight--Comparison of oversight plan 
developed in January 1995 to actual activities of the 
Subcommittee during the 104th Congress.
    1. Hearing to examine the effectiveness of current Federal 
child welfare and foster care programs.
    Action taken: The Subcommittee hearing was held on January 
23, 1995. Testimony taken at the hearing helped form the basis 
for reforms to Federal child welfare programs enacted in H.R. 
3734, the ``Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996'' (P.L. 104-193).
    2. Hearing to examine the Federal Communications 
Commission's (FCC) administration of Internal Revenue Code 
section 1071.
    Action taken: The Subcommittee hearing was held on January 
27, 1995. Testimony taken at the hearing established the 
foundation for repeal of Internal Revenue Code section 1071, 
relating to special rules for the treatment of gain on the sale 
or exchange of FCC-certified broadcast property (the so-called 
``FCC Minority Tax Certificate Program'').
    3. Hearing to review the Administration's FY 1996 budget 
request for the IRS, the U.S. Tax Court and the Bureau of 
Alcohol, Tobacco, and Firearms. The hearing will evaluate the 
progress of and future funding requirements for the IRS's Tax 
Systems Modernization program.
    Action taken: The Subcommittee hearing was held on February 
27, 1995, to examine both the Administration's fiscal year 1996 
budget request for the IRS, and the status of the 1995 tax 
return filing season. Testimony taken at the hearing helped to 
form the basis for recommendations transmitted by the Committee 
on Ways and Means to the Committee on Appropriations relating 
to budgetary resources for the IRS for FY 1996.
    The Subcommittee also held a hearing on March 28, 1996, to 
examine the Administration's proposed IRS budget for fiscal 
year 1997 and the status of the 1996 tax return filing season. 
Testimony taken at the hearing helped to form the basis for 
recommendations transmitted by the Committee on Ways and Means 
to the Committee on Appropriations relating to budgetary 
resources for the IRS for FY 1997.
    4. Hearing on the 1995 tax return filing season, to examine 
the accuracy and availability of IRS's taxpayer telephone 
assistance, IRS's efforts to identify and reduce tax return 
preparation fraud and processing errors, and specific focus on 
electronic filing fraud.
    Action taken: See #3 above.
    5. Hearing to examine the IRS's planned Tax Compliance 
Measurement Program (TCMP) audits.
    Action taken: The Subcommittee hearing was held to examine 
the IRS's plan to conduct a TCMP on July 18, 1995. TCMP surveys 
are conducted periodically by the IRS to gather data for 
compliance research purposes. Under TCMP, a stratified random 
sample of income tax returns are selected for examination. The 
data collected from these surveys are used to: (1) measure 
compliance levels; (2) estimate the tax gap (i.e., the 
difference between the amount of taxes legally owed and the 
amount voluntarily paid); (3) identify compliance issues and 
develop computer formulas used for objectively selecting 
returns for audit; (4) develop data used for revenue estimating 
purposes; and (5) develop data used to more efficiently 
allocate the IRS's audit resources. The last TCMP survey was 
conducted in 1988.
    Testimony presented at the hearing indicated that while the 
data gathered through TCMP surveys is useful for tax 
administration purposes, the process is burdensome for the 
taxpayers whose tax returns are selected for TCMP audits. 
Information gathered at the hearing served the basis for a 
provision which was included in the Committee on Ways and Means 
title of H.R. 2491, the Balanced Budget Act of 1995,'' to 
provide a tax credit to individuals (not including estates, 
trusts, partnerships or S corporations) for up to $3,000 of 
expenses incurred in connection with a TCMP audit of the 
taxpayer. Subsequent to House passage of this measure, the IRS 
announced that it was canceling the planned TCMP, and the 
provision was dropped from the final conference agreement on 
H.R. 2491.
    6. Hearing to receive testimony from the U.S. General 
Accounting Office (GAO) and Inspectors Generals from the 
Departments of Treasury, Labor and Health and Human Services to 
receive updates on their analyses of the fraud and abuse ``high 
risk'' areas in programs under the Committee's jurisdiction.
    Action taken: In lieu of hearing, the Subcommittee staff 
met with officials from the GAO and the Inspectors General from 
the Departments of Treasury and Health and Human Services to 
receive a briefing on their analysis of fraud and abuse ``high 
risk'' areas in programs under the Committee's jurisdiction. 
Information gathered at this briefing helped to form the basis 
for requests for several GAO studies currently in process, and 
for the Subcommittee's in-depth examination of the IRS Accounts 
Receivables Dollar Inventory, which GAO has rated as a ``high 
risk'' area (see ``Other Oversight Activities'' below).
    7. Hearing to review IRS enforcement of Federal tax laws 
relating to employment taxes and independent contractors.
    Action taken: The Subcommittee held two hearings, on June 4 
and 20, 1996, to examine various issues relating to the 
classification of workers for Federal tax purposes, including 
IRS enforcement activities, revisions to its manual for 
training revenue agents to conduct worker classification 
examinations, and its worker classification settlement 
guidelines. Testimony taken at the hearing helped to form the 
basis for several provisions included in H.R. 3448, the ``Small 
Business Job Protection Act of 1996'' (P.L. 104-188). Among 
other things, these included several modifications to section 
530 of the Revenue Act of 1978 (the so-called ``section 530 
safe harbor'').
    8. Hearing (possibly to be held jointly with the 
Subcommittee on Trade) to review implementation of the NAFTA 
and WTO; international dispute resolution mechanisms; and 
compliance with existing bilateral tax and trade agreements.
    Action taken: See Subcommittee on Trade section above for 
information on oversight activities conducted with regard to 
these matters.
    9. Hearing to monitor the operation of the Social Security 
Administration, including issues relating to caseload 
management and adequacy of beneficiary services.
    Action taken: See Subcommittee on Social Security section 
below for information on oversight activities conducted with 
regard to these matters.
    10. Oversight Project. Comprehensive review of the 
compliance burden imposed by the Federal tax laws for purposes 
of developing tax simplification legislation.
    Action taken: This is an ongoing project. Subcommittee 
staff has held meetings with, and additional meetings are 
planned, with small business advocacy groups, the American 
Institute of Certified Public Accountants, the National 
Association of Enrolled Agents, the Section of Taxation of the 
American Bar Association, and others, to identify provisions in 
the tax code which present the most significant areas of 
complexity and compliance burden for small business. 
Information gathered through these meetings may be used to 
develop future Subcommittee activities.
    11. Hearing to examine expiring tax provisions including, 
among others, the research and development tax credit, the 
targeted jobs tax credit, and the exclusion for employer-
provided educational expenses (expired).
    Action taken: The Subcommittee hearing was held to examine 
various expiring or expired tax provisions, including the 
targeted jobs tax credit and the exclusion for employer-
provided educational expenses on May 9, 1995. The Subcommittee 
hearing was held to examine the research and experimentation 
tax credit and the allocation of research expenses under 
Internal Revenue Code section 861 on May 10, 1995.
    12. Hearing to review the operation and administration of 
the Hazardous Substance Superfund.
    Action taken: Although no hearing was held, the full 
Committee staff participated in numerous meetings with staff 
from authorizing committees with jurisdiction over the 
programmatic functions of the Superfund law to monitor the 
progress of legislation to reauthorize the program.
    13. Hearing to examine suggestions from the public and 
practitioners for provisions to include in a Taxpayer Bill of 
Rights 2, to be followed by development of legislation.
    Action taken: The Subcommittee hearing was held on March 
24, 1995, to explore the development of a Taxpayer Bill of 
Rights 2. In follow up to the Subcommittee's hearing, the 
Subcommittee issued a report to the full Committee transmitting 
the Subcommittee's findings and recommendations for legislative 
changes (WMCP: 104-8). This report formed the foundation for 
H.R. 2337, the ``Taxpayer Bill of Rights 2,'' which the 
Committee reported to the House, as amended, on March 28, 1996 
(H. Rept. 104-506), passed the House on April 16, 1996, and the 
President signed into law on July 30, 1996 (P.L. 104-168).
    14. Hearing to examine current laws regarding liability for 
and the IRS's enforcement and collection of Federal excise 
taxes on diesel fuel.
    Action taken: Subcommittee staff met with official from the 
IRS National Office to receive a briefing on the IRS's diesel 
fuel excise tax enforcement activities.
    15. Hearing to examine Subchapter S issues and proposals 
for reform.
    Action taken: The full Committee approved significant 
reforms to provisions of the Internal Revenue Code relating to 
Subchapter S corporations which were enacted in H.R. 3448, the 
``Small Business Job Protection Act of 1996'' (P.L. 104-188).
    16. Hearing to examine miscellaneous bills and proposals 
for technical and conforming changes to the tax code.
    Action taken: The full Committee held two days of hearings 
on July 11 and 12, 1995, to examine miscellaneous bills and 
proposals for reforming the Internal Revenue Code.
    17. Hearing to review provisions in the tax laws relating 
to tax-exempt municipal financing, including review of the 
restrictions imposed in the Tax Reform Act of 1986 and 
subsequent amendments, and potential problems associated with 
privatizing public facilities financed with municipal bonds.
    Action taken: In lieu of the planned hearing, the 
Subcommittee held a hearing on July 16, 1996, to conduct a more 
general examination of the impact of provisions of the Internal 
Revenue Code on both urban and rural land use issues. Testimony 
was received on the tax credit for rehabilitation expenditures; 
incentives for locating businesses in empowerment zones; and 
employment and training credit; section 179 expensing; a new 
category of tax-exempt private activity bonds; the tax 
treatment of environmental remediation costs; preservation 
easements to minimize Federal estate taxes; an income tax 
deduction for donating an easement to a qualified organization 
for conservation purposes; and an estate tax preference for 
farms and small businesses.
    18. Hearing to examine noncompliance with the tax laws 
applicable to public charities and other tax-exempt 
organizations, and the IRS's enforcement of those laws.
    Action taken: The full Committee approved provisions 
relating to intermediate sanctions in cases where tax-exempt 
organizations violate prohibitions on private inurement, which 
were enacted in H.R. 2337, the ``Taxpayer Bill of Rights 2'' 
(P.L. 104-168). The Subcommittee staff received numerous 
briefings from IRS on tax-exempt organization issues and is in 
the process of developing an action plan for oversight hearings 
on tax-exempt organization issues in the 105th Congress.
    19. Hearing (possibly to be held jointly with the 
Subcommittee on Health) to examine Medicare waste, fraud and 
abuse issues.
    Action taken: The Subcommittee on Health held three days of 
Medicare hearings on February 6, 7, and 10, 1995, on 
controlling costs and improving care. On February 6, the 
Subcommittee examined Medicare waste, fraud and abuse issues.
    20. Hearing (possibly to be held jointly with the 
Subcommittee on Health) to examine implementation and 
enforcement of Physician Self-Referral anti-fraud and abuse 
measures, and issues relating to activities of physician-owned 
facilities and managed care companies.
    Action taken: The Subcommittee on Health examined physician 
self-referral issues at a hearing held on May 3, 1995.
    21. Hearing to review miscellaneous pension issues, 
including the financial condition of Federal, State and local 
government pension systems and the complexity of existing 
statutory and regulatory requirements on qualified public and 
private plans and their effect on private savings.
    Action taken: The full Committee approved significant 
reforms to simplify provisions of the Internal Revenue Code 
relating to qualified public and private pension plans which 
were enacted in H.R. 3448, the ``Small Business Job Protection 
Act of 1996'' (P.L. 104-188).
    22. Hearing (possibly to be held jointly with the 
Subcommittee on Trade) to monitor operations of the U.S. 
Customs Service, including matters involving commercial 
operations and enforcement.
    Action taken: See Subcommittee on Trade section above for 
information on oversight activities conducted with regard to 
these matters.
    23. Investigations as necessary under the Subcommittee on 
Oversight's authority under section 6103 of the Internal 
Revenue Code to: review confidential tax return information, 
evaluate compliance with the tax laws; and examine allegations 
of tax evasion and schemes to defraud the nation's taxpayers.
    Action taken: See ``Other Oversight Activities'' below.
    24. Field hearings on issues to be determined, for the 
purpose of providing members of the public with input into the 
Congressional oversight process.
    Action taken: No field hearings were held by the 
Subcommittee.
    Subcommittee on Human Resources--Comparison of oversight 
plan developed in January 1995 to actual activities of the 
Subcommittee during the 104th Congress:
    1. Hearing to examine the growth of spending on means-
tested programs and the role of entitlements in this growth.
    Action taken: The Subcommittee hearing was held on January 
23, 1995. Testimony taken at the hearing helped to form the 
basis for provisions included in the Personal Responsibility 
Act, the Contract with America welfare reform bill (H.R. 4), 
which was approved by the House on March 24, 1995. H.R. 4 
formed the basis for H.R. 3734, the ``Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996'' (P.L. 104-
193).
    2. Hearing to examine historical changes in the rates of 
illegitimacy and the role illegitimacy has played in the growth 
of the welfare rolls.
    Action taken: The Subcommittee hearing was held on January 
20, 1995. Testimony taken at the hearing helped to form the 
basis for provisions included in the Personal Responsibility 
Act, the Contract with America welfare reform bill (H.R. 4), 
which was approved by the House on March 24, 1995. H.R. 4 
formed the basis for H.R. 3734, the ``Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996'' (P.L. 104-
193).
    3. Hearing to examine evidence regarding the length of 
stays on welfare and the effectiveness of programs that provide 
education, training, job search and work experience in helping 
families leave welfare.
    Action taken: The Subcommittee hearing was held on January 
23, 1995. Testimony taken at the hearing helped to form the 
basis for provisions included in the Personal Responsibility 
Act, the Contract with America welfare reform bill (H.R. 4), 
which was approved by the House on March 24, 1995. H.R. 4 
formed the basis for H.R. 3734, the ``Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996'' (P.L. 104-
193).
    4. Hearing to examine fraud and abuse in the SSI program 
and proposals for reforming benefits.
    Action taken: The Subcommittee hearing was held on January 
27, 1995. Testimony taken at the hearing helped to form the 
basis for provisions included in the Personal Responsibility 
Act, the Contract with America welfare reform bill (H.R. 4), 
which was approved by the House on March 24, 1995. H.R. 4 
formed the basis for H.R. 3734, the ``Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996'' (P.L. 104-
193).
    5. Hearing (held jointly with Subcommittee on Early 
Childhood, Youth and Families of the Committee on Economic and 
Educational Opportunities) to examine child care and child 
welfare issues.
    Action taken: The joint Subcommittee hearing was held on 
February 3, 1995. Testimony taken at the hearing helped to form 
the basis for provisions included in the Personal 
Responsibility Act, the Contract with America welfare reform 
bill (H.R. 4), which was approved by the House on March 24, 
1995. H.R. 4 formed the basis for H.R. 3734, the ``Personal 
Responsibility and Work Opportunity Reconciliation Act of 
1996'' (P.L. 104-193).
    6. Hearing to examine possible reforms to the Federal Child 
Support Enforcement program.
    Action taken: The Subcommittee hearing was held on February 
6, 1995. Testimony taken at the hearing helped to form the 
basis for provisions included in the Personal Responsibility 
Act, the Contract with America welfare reform bill (H.R. 4), 
which was approved by the House on March 24, 1995. H.R. 4 
formed the basis for H.R. 3734, the ``Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996'' (P.L. 104-
193).
    7. Hearing (to be held jointly with the Subcommittee on 
Oversight) to examine welfare waste, fraud and abuse issues and 
possible measures to address fraud and abuse.
    Action taken: Because the Subcommittee held many hearings 
on all aspects of Federal and State welfare programs, many 
issues relating to fraud and abuse were addressed in the course 
of earlier oversight/investigative hearings (see above).
    8. Hearing (to be held jointly with the Subcommittee on 
Oversight) to examine SSI waste, fraud and abuse issues and 
possible measures to address fraud and abuse.
    Action taken: The Subcommittee hearing was held on January 
27, 1995, on fraud and abuse of the SSI program. Subsequently, 
the Subcommittee and the full Committee marked up numerous 
provisions that were included in the Personal Responsibility 
Act, which was approved by the House on March 24, 1995. 
Included were provisions ending SSI payments to individuals 
whose sole disabling condition is drug addiction or alcoholism 
(later included in H.R. 3136, the ``Contract with America 
Advancement Act'' (P.L. 104-121)) and to noncitizens of the 
United States and children with questionable claims to 
disability benefits (included in, H.R. 3734, the ``Personal 
Responsibility and Work Opportunity Reconciliation Act of 
1996'' (P.L. 104-193)).
    9. Hearing (possibly to be held jointly with the 
Subcommittee on Oversight) to examine program trends under the 
Federal Child Support Enforcement program.
    Action taken: Child support enforcement hearings were held 
by the Subcommittee on Human Resources on February 6, 1995 (see 
above) and June 13, 1995. Other Subcommittee hearings were held 
on February 20, and May 22 and 23, 1996, examined comprehensive 
welfare reform proposals--including major child support 
reforms--submitted by the Nation's Governors, the Clinton 
Administration, and the Congress, respectively. The 
Subcommittee also marked up several comprehensive welfare 
reform proposals that included sweeping child support reforms, 
leading to the passage of H.R. 3734, the ``Personal 
Responsibility and Work Opportunity Reconciliation Act of 
1996'' (P.L. 104-193). Finally, on September 19, 1996, the 
Subcommittee held a hearing on the implementation of child 
support enforcement changes required under the new welfare 
reform law.
    10. Hearing to examine current laws relating to 
unemployment compensation and possible reforms.
    Action taken: The Subcommittee hearing was held on several 
pending unemployment insurance issues on July 11, 1996, which 
focused on issues of interest to States, employers, and 
employees. Witnesses representing the U.S. Department of Labor, 
the State of Illinois, State employment security agencies, and 
employers presented testimony on the ``Pennington case.'' At 
issue was a Federal court decision (Pennington v. Doherty) that 
called into question for the first time whether States had the 
authority to select their own base period to determine 
individual eligibility for unemployment compensation benefits. 
Also considered was testimony from proponents of unemployment 
``devolution'' proposals, which call for increased State 
authority in the setting and collecting of the Federal share of 
Federal Unemployment Tax Act (FUTA) taxes. Other unemployment 
insurance issues of interest to actors and poll workers were 
addressed, along with a comprehensive reform proposal offered 
by Rep. English, a member of the Subcommittee. No further 
action was taken on any of these proposals prior to the 
conclusion of the 104th Congress.
    Subcommittee on Health--Comparison of oversight plan 
developed in January 1995 to actual activities of the 
Subcommittee during the 104th Congress:
    1. Hearing to examine areas of extraordinary growth in 
Medicare and the potential causes for such growth.
    Action taken: The Subcommittee hearing was held on February 
6, 1995. Testimony taken at the hearing helped form the basis 
of legislation for the consideration by the Committee which was 
included in H.R. 2425, the ``Medicare Preservation Act of 
1995.''
    2. Hearing to examine innovations in Medicare, including 
oversight of Medicare risk contract Health Maintenance 
Organizations (HMOs) and Medicare SELECT.
    Action taken: The Subcommittee hearing was held February 
10, 1995. Testimony taken from the hearings helped form the 
basis of legislation for consideration by the Committee to 
expand and extend the Medicare SELECT demonstration (H.R. 483), 
and additional legislation to expand managed care under 
Medicare which was included in H.R. 2425, the ``Medicare 
Preservation Act of 1995.''
    3. Hearing to examine the administration of Medicare 
policies by the Health Care Financing Administration.
    Action taken: The Subcommittee hearings were held April 3, 
1995, and July 27, 1995. Testimony taken from the hearings 
helped form the basis of legislation considered by the 
Committee which was included in H.R. 2425, the ``Medicare 
Preservation Act of 1995.''
    4. Hearing to examine current law of hospital and physician 
payment policies under Medicare Parts A and B.
    Action taken: The Subcommittee hearing was held March 30, 
1995. Testimony taken from the hearing helped form the basis of 
legislation for consideration by the Committee which was 
included in H.R. 2425, the ``Medicare Preservation Act of 
1995.''
    5. Hearing to examine current law policies relating to 
payment for graduate medical education (GME) under Medicare 
Part A.
    Action taken: The Subcommittee hearings were held March 23, 
1995, April 16 and June 11, 1996. Testimony taken from the 
March 23 hearing helped form the basis of legislation for 
consideration by the Committee which was included in H.R. 2425, 
the ``Medicare Preservation Act of 1995.'' The subsequent 
hearings examined recommendations for payment policy and 
Medicare's ability to finance GME.
    6. Hearing to examine issues relating to Medicare 
intermediaries and carriers, including implementation of the 
Medicare transaction systems and funding for payment 
safeguards.
    Action taken: The Subcommittee hearing was held on July 23, 
1996. Testimony taken from the hearing helped form the basis of 
legislation considered by the Committee which was included in 
the H.R. 3103, the ``Health Insurance Portability and 
Accountability Act of 1996'' (P.L. 104-191).
    7. Hearing on Medicare Peer Review Organizations.
    Action taken: The Subcommittee hearings were held on March 
21 and May 16, 1995. Testimony at each of the hearings assisted 
the Committee in its consideration of improvements of the 
Medicare program which were included in H.R. 2425, the 
``Medicare Preservation Act of 1995.''
    Subcommittee on Social Security--Comparison of oversight 
plan developed in January 1995 to actual activities of the 
Subcommittee during the 104th Congress:
    1. Hearing to examine implementation of the ``Social 
Security Independence and Program Improvement Act,'' including 
an examination of the advisory and oversight role of the Social 
Security Advisory Board.
    Action taken: The Subcommittee hearing was held to review 
the performance of SSA in its first year as an independent 
agency on July 25, 1996. Testimony received from the 
Comptroller General raised Subcommittee concerns about whether 
SSA has begun the necessary steps to provide data and policy 
analysis to Congress and the American public on various issues 
facing Social Security, particularly long-term solvency of the 
program.
    Following up on recommendations made by the Comptroller 
General, the Subcommittee held a second hearing on September 
12, 1996, to receive the preliminary GAO findings on SSA plans 
to implement its mandate to send a Personal Earnings and 
Benefit Estimate Statement to virtually all workers by the year 
2000; to hear additional GAO findings on SSA progress in 
redesigning its disability process; and to examine whether the 
new SSA Office of the Inspector General had the resources to 
adequately combat Social Security fraud.
    The SSA Inspector General testified that his office was 
seriously understaffed, particularly with respect to the number 
of agents needed to combat growing Social Security fraud and 
criminal activity. As a result, H.R. 3610, which provided 
fiscal year 1997 appropriations for SSA operations, included a 
$10 million increase in funding for the SSA Office of the 
Inspector General for an increase in manpower to improve 
efforts to combat Social Security fraud and criminal activity 
(P.L. 104-208).
    2. Hearing to examine the Social Security Administration's 
proposals for reengineering the SSDI program.
    Action taken: The Subcommittee hearings were held on May 23 
and 24, 1995, to examine how effectively the disability 
insurance program was being administered by SSA. Testimony at 
the hearing focused on the causes and extent of the disability 
claims backlogs, what short- and long-term initiatives have 
been developed to address these backlogs and to conduct 
disability reviews, and various concerns surrounding the 
agency's implementation of these initiatives. A third hearing 
was conducted on August 3, 1995. During the hearing, the 
Subcommittee focused on management of the program (including 
SSDI reegineering), vocational rehabilitation, and the appeals 
process.
    In addition, as described earlier, the two independent 
agency hearings also focused on disability reengineering. All 
of these oversight hearings also looked at causes of the 
tremendous growth in the disability programs in the last 
decade, and ways this growth can be addressed before the 
program becomes insolvent in 2012. Testimony recommending 
changes in program management and administration by SSA, as 
well as suggesting fundamental reforms to the program, was 
received.
    3. Hearing to examine SSDI Continuing Disability Review 
(CDR) issues.
    Action taken: The Subcommittee included examination of 
SSA's administration of CDRs in the hearings conducted on May 
23-24 and August 3, 1995. Based on GAO findings, the 
Subcommittee determined that significant savings could result 
if SSA addressed the CDR backlog of over 3 million cases. As a 
result, a provision authorizing substantial additional 
administrative funding to conduct CDRs was included in H.R. 
3136, the ``Contract With America Advancement Act,'' (P.L. 104-
121).
    4. Hearing to examine SSDI service delivery issues.
    Action taken: The Subcommittee included examination of 
SSA's SSDI service delivery in the hearings conducted on May 
23-24 and August 3, 1995; and July 25 and September 12, 1996. 
The testimony received helped form the basis for H.R. 4230, the 
``Rehabilitation and Return to Work Opportunity Act of 1996,'' 
introduced by Subcommittee on Social Security Chairman Bunning 
on September 27, 1996, to overhaul the vocational 
rehabilitation process.
    5. Hearing to examine SSDI caseload backlogs.
    Action taken: The Subcommittee included examination of 
SSA's SSDI caseload backlogs in the hearings conducted on May 
23-24 and August 3, 1995; and July 25 and September 12, 1996.
    6. Hearing to examine continuing problems with deceptive 
mailings to senior citizens.
    Action taken: In lieu of a hearing, Subcommittee on Social 
Security Chairman Bunning asked the GAO to conduct an audit of 
non-profit organizations which utilize Social Security issues 
in fund-raising appeals. The GAO report is expected to be 
completed on March 28, 1997.
    Full Committee.
    In late 1995 or early 1996, the Committee anticipates that 
it will begin a series of hearings for the purpose of 
conducting a comprehensive examination of the current Federal 
income tax code and proposals for fundamental tax reform.
    Action taken: As part of its oversight responsibilities, 
the Committee began a series of hearings for the purpose of 
conducting a comprehensive examination of the current Federal 
income tax and proposals for fundamental reform. On June 6, 7, 
and 8, 1995 and March 20 and 27, 1996, the Committee held 
hearings on the problems caused by the current Federal income 
tax system, proposals to replace the Federal income tax, and 
the issues related to such a replacement. On April 24, 1996, 
the Committee held a hearing on the impact of various 
alternative tax systems on small businesses. On May 1, 1996, 
the Committee held a hearing on the impact of various 
alternative tax systems on State and local governments and tax-
exempt entities. On July 18, 1996, the Committee held a hearing 
on the impact of various alternative tax systems on 
international competitiveness. Finally, on July 31, 1996, the 
Committee held a hearing on the impact of various alternative 
tax systems on manufacturing and energy and natural resources.

 C. Additional Oversight Activities and Any Recommendations or Actions 
                                 Taken

      1. additional oversight activities of the trade subcommittee

    In addition to the activities detailed above with respect 
to the Subcommittee's oversight plan, the Subcommittee held a 
number of hearings to address various topics concerning trade 
policy: implementation of the Organization of Economic 
Cooperation and Development Agreement on Shipbuilding; rules of 
origin; proposed substantive antidumping regulations by the 
Department of Commerce and the Temporary Duty Suspension Act 
(H.R. 2822), which would provide the Department of Commerce the 
discretion to suspend antidumping duties temporarily if it 
determines that prevailing market conditions related to the 
availability of the product in the United States make 
imposition of the duty inappropriate; the H.R. 3107, ``Iran and 
Libya Sanctions Act of 1996;'' and trade with sub-Saharan 
Africa.
    The Subcommittee also requested public comment concerning a 
number of trade issues, including: trade relations with 
Cambodia, including most-favored-nation (MFN) status; trade 
relations with Bulgaria, including MFN status; trade relations 
with Romania, including MFN status; technical corrections and 
miscellaneous trade proposals; and reforms to the U.S. 
International Trade Commission.
    In addition to holding a number of hearings and providing 
opportunity for public comment, the Subcommittee requested a 
number of reports. On October 2, 1996, Chairman Archer, 
Subcommittee on Trade Chairman Crane and Senator Grassley 
released a report they requested of the GAO on the operations 
of the Committee for the Implementation of Textile Agreements 
(CITA), an office in the Department of Commerce which 
administers the U.S. textile and apparel import program. The 
report found that CITA often imposed quotas when there was 
little or no data to support a decision that imports were 
causing damage to the domestic industry producing a similar 
product.
    The Subcommittee also requested and received a number of 
reports concerning Customs operations, including staffing, the 
status of reorganization and modernization efforts, automation, 
the status of the implementation of blue ribbon panel 
recommendations, drug interdiction efforts, and country-of-
origin marking.
    Finally, the Committee published its 1995 edition of the 
Overview and Compilation of U.S. Trade Status (WMCP: 104-6).

    2. Additional oversight activities of the oversight subcommittee

    In addition to the oversight activities listed above, the 
Subcommittee held a hearing on April 25, 1996, to examine a 
number of Federal tax debt collection issues, including: (1) 
the status of the IRS accounts receivable dollar inventory; (2) 
issues relating to the use of private collection agencies to 
collect delinquent Federal tax debts; (3) provisions in H.R. 
2234, the ``Debt Collection Improvement Act of 1995,'' relating 
to IRS levy authority; and (4) H.R. 757, relating to Federal 
tax refund offset authority for purposes of collecting 
delinquent State tax debts. Testimony taken at this hearing 
formed the basis for a request by the Subcommittee on Oversight 
Chairman Johnson for a GAO study of several Federal tax debt 
collection issues, including further examination of the IRS 
accounts receivable dollar inventory and an examination of best 
practices in the debt collection industry. The Subcommittee 
staff is developing an action plan for additional oversight 
activities with respect to Federal tax debt collection issues 
in the 105th Congress.
    The Subcommittee also held a hearing on June 22, 1995, to 
examine implementation of the Coal Industry Retiree Health 
Benefit Act of 1992 (the ``Coal Act''). Testimony taken at the 
hearing formed the basis for a provision included in the 
Committee on Ways and Means title of H.R. 2491, the ``Balanced 
Budget Act of 1995,'' which, among other things, would have 
revised the Coal Act to exempt from its provisions companies 
that did not sign the 1988 National Bituminous Coal Wage 
Agreement (NBCWA) and companies who made withdrawal liability 
payment under the terms of the 1988 NBCWA. This provision was 
not included in the conference agreement on H.R. 2491.
    The Subcommittee staff participated in several meetings 
with representatives from small business advocacy groups 
regarding their concerns about legislation enacted in 1993 
requiring the IRS to implement a nationwide system for 
receiving Federal depository taxes electronically, known as the 
``Electronic Federal Tax Payment System (EFTPS). In follow up 
to those meetings, Subcommittee staff met with senior IRS 
officials regarding the status of implementation of the third 
phase of EFTPS, in which approximately 1.2 million small to 
medium-sized businesses will be required to enroll in EFTPS and 
begin paying their Federal depository taxes next year.
    While IRS indicated that the EFTPS system would be fully 
operational on January 1, 1997, there remained a concern that 
there was insufficient time remaining for the IRS to fully 
inform the affected business about how the program is intended 
to operate and to achieve enrollment of mandated taxpayers on a 
timely business. Information gathered at these meetings formed 
the basis for the decision to include a provision in H.R. 3448, 
the ``Small Business Jobs Protection Act of 1996'' (P.L. 104-
188) to delay the deadline for enrollment in EFTPS until July 
1, 1997. In addition, the IRS announced that it would not 
impose any penalties on the new depositors for failure to begin 
making deposits electronically through EFTPS until after July 
1, 1997.

 3. additional oversight activities of the human resources subcommittee

    In addition to the Subcommittee's oversight activities 
relating to welfare discussed above, the full Committee held 
hearings on January 5, 10, 11, and 12, 1995, on provisions of 
the Contract with America, including the Personal 
Responsibility Act. The Subcommittee also held several 
additional hearings relating to various welfare issues. On May 
10, 1995, the Subcommittee held a hearing on Federal adoption 
policy. The Subcommittee received additional testimony on the 
Federal Child Support Enforcement and SSI programs on June 13, 
1995. Finally, on December 6, 1995, the Subcommittee held a 
hearing on welfare reform success stories, focusing on welfare 
reform programs nationwide that achieved success in reducing 
dependence, promoting work, and collecting child support for 
needy children.
    On February 20, 1996, the Subcommittee held a hearing on 
the welfare reform proposal developed by the Nation's 
governors. Testimony was heard from Governors Thompson of 
Wisconsin and Carper of Delaware. On March 12, 1996, the 
Subcommittee held a hearing examining the causes of poverty, 
with a focus on out-of-wedlock births, featuring the views of 
several Members of Congress, policy experts, and 
representatives of faith-based organizations.
    On June 27, 1996, the Subcommittee held a hearing on issues 
related to removing barriers to adoption, especially the 
requirement that ``reasonable efforts'' be made to keep 
children with their parents prior to the placement of a child 
in foster care. Several witnesses testified that the way the 
current law ``reasonable efforts'' provision is being 
interpreted and implemented by many States is itself a barrier 
to adoption.
    In addition to the July 11, 1996 hearing on unemployment 
issues noted above, the Subcommittee held a hearing on May 16, 
1995, at which it received testimony on legislation proposing 
the consolidation of more than 100 Federal job training 
programs into a handful of block grants, designed to increase 
State flexibility in providing services needed to return 
unemployed workers to the workplace. This legislation, drafted 
primarily by the Committee on Economic and Educational 
Opportunities, was ultimately approved by the House, but a 
conference report was not filed. The Subcommittee also received 
testimony on the operation of several employment and training 
programs under the jurisdiction of the Committee on Ways and 
Means, including the TAA program and the NAFTA TAA program. 
Representatives of employers also presented testimony in favor 
of repealing the 0.2 percent FUTA surcharge.

     4. additional oversight activities of the health subcommittee

    In addition to the activities detailed above with respect 
to the Subcommittee's oversight plan, the Subcommittee held a 
number of hearings to address various topics concerning health 
policy: tax-favored treatment for long-term care insurance; tax 
treatment of health insurance costs for self-employed 
individuals; income-relating to the Part B premium under 
Medicare; review of Medicare proposals included in the 
President's fiscal year 1996 budget and the current status of 
the Medicare Hospital Insurance Trust Fund; examination of 
problems with compliance with the self-referral provisions in 
the Social Security Act, the obstacles the law in its current 
form may present to physicians, hospitals and health plans 
which are forming legitimate managed care arrangements; review 
of the impact of the use of preexisting condition exclusions on 
job mobility and how a targeted approach might be designed; 
review of the reasons for increasing beneficiary enrollment in 
Medicare risk contracting HMOs, and current alternative HMO 
payment methods; exploration of the potential role for 
employers, associations and medical savings account in 
Medicare; examination of integrated acute and long-term care 
models and how these models could be expanded to increase 
choices for Medicare beneficiaries; examination of 
recommendations regarding future directions of the Medicare 
program; review of the Administration's Medicare Choices and 
Competitive Pricing Demonstration Projects; review of 
Medicare's payment policies for home health agency and skilled 
nursing facility services; overview of rural health care 
programs that currently exist; and, examination of the issues 
surrounding the establishment of a Medicare demonstration 
program on subvention, and the implications of such a 
demonstration.
    The Subcommittee also requested information related to 
questions arising from the hearings. On February 6, 1996, 
Chairman Archer and Subcommittee on Health Chairman Thomas 
requested that the GAO respond to questions related to the 
solvency of the Medicare Hospital Insurance Trust Fund. On 
April 17, 1995, Subcommittee Chairman Thomas requested that the 
GAO respond to questions related to the quality of health care 
in Medicare. On June 9, 1995, Subcommittee Chairman Thomas 
requested that the GAO respond to questions about the use of 
clinical practice guidelines by the Federal Employees Health 
Benefit Program. On June 21, 1995, Subcommittee Chairman Thomas 
requested that the GAO examine the levels of medical testing by 
patients with End Stage Renal Disease. On April 17, 1996, 
Chairman Archer requested the Congressional Budget Office 
address issues related to the rate of growth of health 
expenditures in the private sector. On July 15, 1996, Chairman 
Archer, Subcommittee Chairman Thomas and Rep. Nancy Johnson 
requested that the Institute of Medicine examine allocation of 
graduate medical education payments to teaching hospitals. On 
October 8, 1996, Chairman Archer and Subcommittee Chairman 
Thomas requested that the GAO conduct a study regarding payment 
for the transportation of EKG equipment by all medical billers.

 5. Additional oversight activities of the Social Security Subcommittee

    In addition to the activities detailed above with respect 
to the Subcommittee's oversight plan, the Subcommittee held 
oversight hearings on June 4 and 27, 1996, to examine the use 
of Social Security Trust Funds to finance union activity at 
SSA. The Subcommittee received testimony on preliminary GAO 
findings that taxpayer-financed union activity at SSA was under 
reported, and had actually increased to at least $12.6 million 
in 1995 (an increase of 110 percent since 1993), two-thirds of 
which was financed from the Social Security and Medicare Trust 
Funds. As a result of this hearing, on July 11, 1996, 
Subcommittee on Social Security Chairman Bunning offered an 
amendment to H.R. 3755, the ``Departments of Labor, Health and 
Human Services, and Education, and Related Agencies 
Appropriations Bill for Fiscal Year 1997,'' to prohibit use of 
the Social Security and Medicare Trust Funds to finance union 
activity at SSA. The House passed the measure, but it was later 
dropped in conference.

      6. Additional oversight activities concerning the debt limit

    During the debt limit suspension period, the Chairmen of 
the Ways and Means Committee and the Senate Finance Committee 
requested auditors from the GAO to audit, track and report to 
the two committees of jurisdiction on the procedures and 
actions taken by the U.S. Department of the Treasury regarding 
debt management. The audit and reporting was done on a 
continuous, sometimes daily, basis enabling the Committee to 
ascertain the legal and financial ramifications of the 
Secretary's action.
    After passage of a permanent statutory debt limit and the 
end of the debt suspension period, the Chairman asked GAO for 
an official report reviewing the 1995-96 debt limit actions 
taken by the U.S. Department of the Treasury (Report No. GAO/
AIMD-96-130; August 1996). GAO concluded that during the 
suspension period, Treasury, in preventing a debt limit breach, 
acted within its legal limitations and subsequently restored 
lost interest to all trust funds and accounts affected, with 
the exception of $1.2 million of lost interest to the Exchange 
Stabilization Fund. Treasury was unable to restore the money 
without specific legislation. In addition, the Government 
incurred $140 billion in additional debt that normally would 
have been considered subject to the debt limit.

      Appendix I. Jurisdiction of the Committee on Ways and Means

                           U.S. Constitution

    Article I, section 7, of the Constitution of the United 
States provides as follows:

          All Bills for raising Revenue shall originate in the 
        House of Representatives; but the Senate may propose or 
        concur with Amendments as on other Bills.

    In addition, Article I, Section 8, Constitution of the 
United States provides the following:

          The Congress shall have Power To lay and collect 
        Taxes, Duties, Imposts and Excises, to pay the Debts 
        and . . . To borrow Money on the credit of the United 
        States.

        Rule X, Clause 1, Rules of the House of Representatives

    Rule X, clause 1(s), of the Rules of the House of 
Representatives, in effect during the 104th Congress, provides 
for the jurisdiction of the Committee on Ways and Means, as 
follows:
          (s) Committee on Ways and Means.
                  (1) Customs, collection districts, and ports 
                of entry and delivery.
                  (2) Reciprocal trade agreements.
                  (3) Revenue measures generally.
                  (4) Revenue measures relating to the insular 
                possessions.
                  (5) The bonded debt of the United States 
                (subject to the last sentence of clause 4(g) of 
                this rule). [The last sentence of clause 4(g) 
                requires the Committee on Ways and Means to 
                include in its annual February 25 report to the 
                Budget Committee a specific recommendation as 
                to the appropriate level of the public debt 
                which would then be set forth in the concurrent 
                resolution on the budget and serve as the basis 
                for an increase or decrease in the statutory 
                limit on the debt.]
                  (6) The deposit of public moneys.
                  (7) Transportation of dutiable goods.
                  (8) Tax-exempt foundations and charitable 
                trusts.
                  (9) National Social Security, except (A) 
                health care and facilities programs that are 
                supported from general revenues as opposed to 
                payroll deductions and (B) work incentive 
                programs.

             Brief Description of Committee's Jurisdiction

    The foregoing recitation of the provisions of House Rule X, 
clause 1, paragraph (v), does not convey the comprehensive 
nature of the jurisdiction of the Committee on Ways and Means. 
The following summary provides a more complete description:
          (1) Federal revenue measures generally.--The 
        Committee on Ways and Means has the responsibility for 
        raising the revenue required to finance the Federal 
        Government. This includes individual and corporate 
        income taxes, excise taxes, estate taxes, gift taxes, 
        and other miscellaneous taxes.
          (2) The bonded debt of the United States.--The 
        Committee on Ways and Means has jurisdiction over the 
        authority of the Federal Government to borrow money. 
        Title 31 of Chapter 31 of the U.S. Code authorizes the 
        Secretary of the Treasury to conduct any necessary 
        public borrowing subject to a maximum limit on the 
        amount of borrowing outstanding at any one time. This 
        statutory limit on the amount of public debt (``the 
        debt ceiling'') currently is $5.5 trillion. The 
        committee's jurisdiction also includes conditions under 
        which the Department of the Treasury manages the 
        Federal debt, such as restrictions on the conditions 
        under which certain debt instruments are sold.
          (3) National Social Security programs.--The Committee 
        on Ways and Means has jurisdiction over most of the 
        programs authorized by the Social Security Act, which 
        includes not only those programs that are normally 
        referred to colloquially as ``Social Security'' but 
        also social insurance programs and a whole series of 
        grant-in-aid programs to State governments for a 
        variety of purposes. The Social Security Act, as 
        amended, contains 20 titles (a few of which have either 
        expired or have been repealed). The principal programs 
        established by the Social Security Act and under the 
        jurisdiction of the Committee on Ways and Means in the 
        104th Congress can be outlined as follows:
                  (a) Old-age, survivors, and disability 
                insurance (title II)--At present, there are 
                approximately 142 million workers in employment 
                covered by the program, and as of December 
                1995, $336 billion in benefits were being paid 
                annually to 43.4 million individuals.
                  (b) Medicare (title XVIII)--Provides hospital 
                insurance benefits to 32.5 million persons over 
                the age of 65 and to 4.5 million disabled 
                persons. Voluntary supplementary medical 
                insurance is provided to 31.6 million aged 
                persons and 3.9 million disabled persons. 
                Expenditures under these programs were $180.1 
                billion in fiscal year 1995 and are estimated 
                to be $199 billion in fiscal year 1996.
                  (c) Supplemental security income (title 
                XVI)--The SSI program was inaugurated in 
                January 1974 under the provisions of Public Law 
                92-603, as amended. It replaced the former 
                Federal-State programs for the needy aged, 
                blind, and disabled. In fiscal year 1995, 6.5 
                million persons received federally administered 
                benefits under the SSI program. Of these 6.5 
                million persons, approximately 1.4 million 
                received benefits on the basis of age, 84,911 
                on the basis of blindness, and 4.7 million on 
                the basis of disability. Total federally 
                administered payments during fiscal year 1995 
                amounted to approximately $27 billion, of which 
                $23.9 billion were basic Federal benefits and 
                $3.1 billion were federally administered State 
                supplements to the payments.
                  (d) Aid to families with dependent children 
                (title IV)--This program provides grant-in-aid 
                to States for aid to families with dependent 
                children and child support enforcement. About 
                13.6 million persons in 4.9 million families 
                received AFDC benefits during fiscal year 1995. 
                Total AFDC payments in fiscal year 1995 were 
                approximately $22.0 billion. In fiscal year 
                1995, Federal administrative expenditures 
                totaled $2.1 billion for the child support 
                enforcement program. Child support collections 
                for that year totaled $10.8 billion.
                  (e) Social services (title XX)--Title XX 
                authorizes the Federal Government to reimburse 
                the States for money spent to provide persons 
                with various services. Generally, the specific 
                services provided are determined by each State. 
                The statutory ceiling on Federal matching funds 
                available for fiscal year 1995 was $2.8 
                billion. These funds are allocated on the basis 
                of population.
                  (f) Unemployment compensation programs 
                (titles II, IX, etc.)--These titles include the 
                State unemployment compensation programs and 
                the permanent extended benefits program. In 
                fiscal year 1996, an estimated $24.1 billion 
                was paid in unemployment compensation benefits, 
                with approximately 8.7 million workers 
                receiving unemployment benefits.
                  (g) Child welfare, foster care and adoption 
                assistance (parts B and E of title IV)--
                Provides funds to States for child welfare 
                services, for abused and neglected children; 
                foster care for AFDC children and adoption 
                assistance for children with special needs. In 
                fiscal year 1995, Federal expenditures for 
                child welfare services totaled $292 million. 
                Federal expenditures for foster care equaled 
                $3.1 billion.
          (4) Trade and tariff legislation.--The Committee on 
        Ways and Means has responsibility over legislation 
        relating to tariffs, import trade, and trade 
        negotiations. In the early days of the Republic, tariff 
        and customs receipts were major sources of revenue for 
        the Federal Government. As the committee with 
        jurisdiction over revenue-raising measures, the 
        Committee on Ways and Means thus evolved as the primary 
        committee responsible for international trade policy.
    The Constitution vests the power to levy tariffs and to 
regulate international commerce specifically in the Congress as 
one of its enumerated powers. Any authority to regulate imports 
or to negotiate trade agreements must therefore be delegated to 
the executive branch through legislative action. Statutes 
including the Reciprocal Trade Agreements Act beginning in 
1934, the Trade Expansion Act of 1962, the Trade Act of 1974, 
the Trade Agreements Act of 1979, the Trade and Tariff Act of 
1984, the Omnibus Trade and Competitiveness Act of 1988, the 
North American Free Trade Agreement Implementation Act, and the 
Uruguay Round Agreements Act provide the basis for U.S. 
bargaining with other countries to achieve the mutual reduction 
of tariff and nontariff trade barriers under reciprocal trade 
agreements.
    The Committee's jurisdiction includes the following 
authorities and programs:
          (a) The tariff schedules and all tariff preference 
        programs, such as the Generalized System of Preferences 
        and the Caribbean Basin Initiative;
          (b) Laws dealing with unfair trade practices, 
        including the antidumping law, countervailing duty law, 
        section 301, and section 337;
          (c) Other laws dealing with import trade, including 
        section 201 (escape clause), section 232 national 
        security controls, section 22 agricultural 
        restrictions, international commodity agreements, 
        textile restrictions under section 204, and any other 
        restrictions or sanctions affecting imports;
          (d) General and specific trade negotiating authority, 
        as well as implementing authority for trade agreements 
        and the grant of most-favored-nation status;
          (e) General and NAFTA-related trade adjustment 
        assistance programs for workers, and trade adjustment 
        assistance for firms;
          (f) Customs administration and enforcement, including 
        rules of origin and country-of origin marking, customs 
        classification, customs valuation, customs user fees, 
        and U.S. participation in the World Customs 
        Organization (WCO);
          (g) Authorization of the budget for the U.S. 
        International Trade Commission (ITC), the U.S. Customs 
        Service, and the Office of the U.S. Trade 
        Representative.

                      Appendix II. Historical Note

    The Committee on Ways and Means was first established as an 
ad hoc committee in the first session of the First Congress, on 
July 24, 1789. Mr. Fitzsimons, from Pennsylvania, in commenting 
on the report of a select committee concerning appropriations 
and revenues, pointed out the desirability of having a 
committee to review the expenditure needs of the Government and 
the resources available, as follows:

          The finances of America have frequently been 
        mentioned in this House as being very inadequate to the 
        demands. I have never been of a different opinion, and 
        do believe that the funds of this country, if properly 
        drawn into operation, will be equal to every claim. The 
        estimate of supplies necessary for the current year 
        appears very great from a report on your table, and 
        which report has found its way into the public 
        newspapers. I said, on a former occasion, and I repeat 
        it now, notwithstanding what is set forth in the 
        estimate, that a revenue of $3 million in specie, will 
        enable us to provide every supply necessary to support 
        the Government, and pay the interest and installments 
        on the foreign and domestic debt. If we wish to have 
        more particular information on these points, we ought 
        to appoint a Committee of Ways and Means, to whom, 
        among other things, the estimate of supplies may be 
        referred, and this ought to be done speedily, if we 
        mean to do it this session.

    After discussion, the motion was agreed to and a committee 
consisting of one member from each State (North Carolina and 
Rhode Island had not yet ratified the Constitution) was 
appointed as follows: Messrs. Fitzsimons (Pennsylvania), Vining 
(Delaware), Livermore (New Hampshire), Cadwalader (New Jersey), 
Laurance (New York), Wadsworth (Connecticut), Jackson 
(Georgia), Gerry (Massachusetts), Smith (Maryland), Smith 
(South Carolina), and Madison (Virginia).
    While there does not appear to be any direct relationship, 
it is interesting to note that the appointment of this ad hoc 
committee came within a few weeks after the House, in Committee 
of the Whole, had spent a good part of the months of April, 
May, and June in wrestling with the details involved in writing 
bills ``for laying a duty on goods, wares, and merchandises 
imported into the United States'' and for imposing duties on 
tonnage. Tariffs, of course, became a prime revenue source for 
the new government.
    However, the results of this ad hoc committee are not 
clear. It existed for a period of only 8 weeks, being dissolved 
on September 17, 1789, with the following order:

          That the Committee on Ways and Means be discharged 
        from further proceeding on the business referred to 
        them, and that it be referred to the Secretary of the 
        Treasury to report thereon.

    It has also been suggested by one student that the 
committee was dissolved because Alexander Hamilton had become 
Secretary of the newly created Department of the Treasury, and 
thus it was presumed that the Treasury Department could provide 
the necessary machinery for developing information which would 
be needed. During the next 6 years there was no Ways and Means 
Committee or any other standing committee for the examination 
of estimates. Rather, ad hoc committees were appointed to draw 
up particular pieces of legislation on the basis of decisions 
made in the Committee of the Whole House. On November 13, 1794, 
a rule was adopted providing that:

          All proceedings touching appropriations of money 
        shall be first moved and discussed in a Committee of 
        the Whole House.

    In the next Congress historians have suggested that the 
House was determined to curtail Secretary Hamilton's influence 
by first setting up a Committee on Ways and Means and requiring 
that committee to submit a report on appropriations and revenue 
measures before consideration in the Committee of the Whole 
House. It was also said that this Ways and Means Committee was 
put on a more or less standing basis since such a committee 
appeared at some point in every Congress until it was made a 
permanent committee.
    In the first session of the 7th Congress, Tuesday, December 
8, 1801, a resolution was adopted as follows:

          Resolved, That a standing Committee of Ways and Means 
        be appointed, whose duty it shall be to take into 
        consideration all such reports of the Treasury 
        Department, and all such propositions, relative to the 
        revenue as may be referred to them by the House; to 
        inquire into the state of the public debt, of the 
        revenue, and of the expenditures; and to report, from 
        time to time, their opinion thereon.

    The following Members were appointed: Messrs. Randolph 
(Virginia), Griswold (Connecticut), Smith (Vermont), Bayard 
(Delaware), Smilie (Pennsylvania), Read (Massachusetts), 
Nicholson (Maryland), Van Rensselaer (New York), Dickson 
(Tennessee).
    On Thursday, January 7, 1802, the House agreed to standing 
rules which, among other things, provided for standing 
committees, including the Committee on Ways and Means. The 
relevant part of the rules in this respect read as follows:

          A Committee of Ways and Means, to consist of seven 
        members;
          * * * * * * *
          It shall be the duty of the said Committee of Ways 
        and Means to take into consideration all such reports 
        of the Treasury Department, and all such propositions 
        relative to the revenue, as may be referred to them by 
        the House; to inquire into the state of the public 
        debt, of the revenue, and of the expenditures, and to 
        report, from time to time, their opinion thereon; to 
        examine into the state of the several public 
        departments, and particularly into the laws making 
        appropriations of moneys, and to report whether the 
        moneys have been disbursed conformably with such laws; 
        and also to report, from time to time, such provisions 
        and arrangements, as may be necessary to add to the 
        economy of the departments, and the accountability of 
        their officers.

    It has been said that the jurisdiction of the committee was 
so broad in the early 19th century that one historian described 
it as follows:

          It seemed like an Atlas bearing upon its shoulders 
        all the business of the House.

    The jurisdiction of the committee remained essentially the 
same until 1865 when the control over appropriations was 
transferred to a newly created Committee on Appropriations and 
another part of its jurisdiction was given to a newly created 
Committee on Banking and Currency. This action followed rather 
extended discussion in the House, too lengthy to review here.
    During the course of that discussion, however, the 
following observations are of some historical interest. Mr. 
Cox, who was handling the motion to divide the committee, gave 
a very picturesque discussion of the many varied and heavy 
duties which had fallen on the committee over the years. He 
observed:

          And yet, sir, powerful as the committee is 
        constituted, even their powers of endurance, physical 
        and mental, are not adequate to the great duty which 
        has been imposed by the emergencies of this historic 
        time. It is an old adage, that ``whoso wanteth rest 
        will also want of might''; and even an Olympian would 
        faint and flag if the burden of Atlas is not relieved 
        by the broad shoulders of Hercules.

    He continued:

          I might give here a detailed statement of the amount 
        of business thrown upon the committee since the 
        commencement of the war. But I prefer to append it to 
        my remarks. Whereas before the war we scarcely expended 
        more than $70 million a year, now, during the five 
        sessions of the last two Congresses, there has been an 
        average appropriation of at least $800 million per 
        session. The statement which I hold in my hand shows 
        that during the first and extra session of the 37th 
        Congress there came appropriation bills from the 
        Committee on Ways and Means amounting to 
        $226,691,457.99. I say nothing now of the loan and 
        other fiscal bills emanating from that committee. * * * 
        During the present session I suppose it would be a fair 
        estimate to take the appropriations of the last session 
        of the 37th Congress, say $900 million.
          These are appropriation bills alone. They are 
        stupendous, and but poorly symbolize the immense labors 
        which the internal revenue, tariff, and loan bills 
        imposed on the committee. * * * And this business of 
        appropriations is perhaps not one-half of the labor of 
        the committee. There are various and important matters 
        upon which they act, but upon which they never report. 
        Their duties comprehend all the varied interests of the 
        United States; every element and branch of industry, 
        and every dollar or dime of value. They are connected 
        with taxation, tariffs, banking, loan bills, and ramify 
        to every fiber of the body-politic. All the springs of 
        wealth and labor are more or less influenced by the 
        action of this committee. Their responsibility is 
        immense, and their control almost imperial over the 
        necessities, comforts, homes, hopes, and destinies of 
        the people. All the values of the United States, which 
        in the census of 1860 (page 194) amount to nearly $17 
        billion, or, to be exact, $16,159,616,068, are affected 
        by the action of that committee, even before their 
        action is approved by the House. Those values fluctuate 
        whenever the head of the Ways and Means rises in his 
        place and proposes a measure. The price of every 
        article we use trembles when he proposes a gold bill or 
        a loan bill, or any bill to tax directly or indirectly. 
        * * * the interests connected with these economical 
        questions are of all questions those most momentous for 
        the future. Parties, statesmanship, union, stability 
        all depend upon the manner in which these questions are 
        dealt with.

    Congressman Morrill (who was subsequently appointed 
chairman of the Ways and Means Committee in the succeeding 
Congress, and who still later became chairman of the Senate 
Finance Committee after he became a Senator) observed as 
follows:

          I am entirely indifferent as to the disposition which 
        shall be made of this subject by the House. So far as I 
        am myself concerned, I have never sought any position 
        upon any committee from the present or any other 
        Speaker of the House, and probably never shall. I have 
        no disposition to press myself hereafter for any 
        position. In relation to the proposed division of the 
        Committee on Ways and Means, the only doubt that I have 
        is the one expressed by my colleague on that committee, 
        Mr. Stevens, in regard to the separation of the 
        questions of revenue from those relating to 
        appropriations. In ordinary times of peace I should 
        deem it almost indispensable and entirely within their 
        power that this committee should have the control of 
        both subjects, in order that they might make both ends 
        meet, that is, to provide a sufficient revenue for the 
        expenditures. That reason applies now with greater 
        force; but it may be that the committee is overworked. 
        It is true that for the last 3 or 4 years the labors of 
        the Committee on Ways and Means have been incessant, 
        they have labored not only days but nights; not only 
        weekends but Sundays. If gentlemen suppose that the 
        committee have permitted some appropriations to be 
        reported which should not have been permitted they 
        little understand how much has been resisted.

    The influence the committee emanated came not only from the 
nature of its jurisdiction but also because for many years the 
chairman of the committee was also ad hoc majority floor leader 
of the House.
    When the revolt against Speaker Cannon took place, and the 
Speaker's powers to appoint the members of committees were 
curtailed, the Majority Members on the Committee on Ways and 
Means became the Committee on Committees. Subsequently, this 
power was disbursed to the respective party caucuses, beginning 
in the 94th Congress.
    Throughout its history, many famous Americans have served 
on the Committee on Ways and Means. The long and distinguished 
list includes 8 Presidents of the United States, 8 Vice 
Presidents, 4 Justices of the Supreme Court, 34 Cabinet 
members, and quite interestingly, 21 Speakers of the House of 
Representatives. This latter figure represents nearly one-half 
of the 47 Speakers who have served since 1789 through the end 
of the 104th Congress. See the alphabetical list which follows 
for names.

  Major positions held by former members of the Committee on Ways and 
                                 Means

President of the United States:
        George H.W. Bush, Texas
        Millard Fillmore, New York
        James A. Garfield, Ohio
        Andrew Jackson, Tennessee
        James Madison, Virginia
        William McKinley, Jr., Ohio
        James K. Polk, Tennessee
        John Tyler, Virginia
Vice President of the United States:
        John C. Breckinridge, Kentucky
        George H.W. Bush, Texas
        Charles Curtis, Kansas
        Millard Fillmore, New York
        John N. Garner, Texas
        Eldridge Gerry, Massachusetts
        Richard M. Johnson, Kentucky
        John Tyler, Virginia
Justice of the Supreme Court:
        Philip P. Barbour, Virginia
        Joseph McKenna, California
        John McKinley, Alabama
        Fred M. Vinson, Kentucky (Chief Justice)
Speaker of the House of Representatives:
        Nathaniel P. Banks, Massachusetts
        Philip P. Barbour, Virginia
        James G. Blaine, Maine
        John G. Carlisle, Kentucky
        Langdon Cheves, South Carolina
        James B. (Champ) Clark, Missouri
        Howell Cobb, Georgia
        Charles F. Crisp, Georgia
        John N. Garner, Texas
        John W. Jones, Virginia
        Michael C. Kerr, Indiana
        Nicholas Longworth, Ohio
        John W. McCormack, Massachusetts
        James K. Polk, Tennessee
        Henry T. Rainey, Illinois
        Samuel J. Randall, Pennsylvania
        Thomas B. Reed, Maine
        Theodore Sedgwick, Massachusetts
        Andrew Stevenson, Virginia
        John W. Taylor, New York
        Robert C. Winthrop, Massachusetts
Cabinet Member:
        Secretary of State:
                James G. Blaine, Maine
                William J. Bryan, Nebraska
                Cordell Hull, Tennessee \1\
---------------------------------------------------------------------------
    \1\ Recipient of Nobel Peace Prize in 1945.
---------------------------------------------------------------------------
                Louis McLean, Delaware
                John Sherman, Ohio
        Secretary of the Treasury:
                George W. Campbell, Tennessee
                John G. Carlisle, Kentucky
                Howell Cobb, Georgia
                Thomas Corwin, Ohio
                Charles Foster, Ohio
                Albert Gallatin, Pennsylvania
                Samuel D. Ingham, Pennsylvania
                Louis McLean, Delaware
                Ogden L. Mills, New York
                John Sherman, Ohio
                Philip F. Thomas, Maryland
                Fred M. Vinson, Kentucky
        Attorney General:
                James P. McGranery, Pennsylvania
                Joseph McKenna, California
                A. Mitchell Palmer, Pennsylvania
                Caesar A. Rodney, Delaware
        Postmaster General:
                Samuel D. Hubbard, Connecticut
                Cave Johnson, Tennessee
                Horace Maynard, Tennessee
                William L. Wilson, West Virginia
        Secretary of the Navy:
                Thomas W. Gilder, Virginia
                Hilary A. Herbert, Alabama
                Victor H. Metcalf, California
                Claude A. Swanson, Virginia
        Secretary of the Interior:
                Rogers C.B. Morton, Maryland
                Jacob Thompson, Mississippi
        Secretary of Commerce and Labor:
                Victor H. Metcalf, California
        Secretary of Commerce:
                Rogers C.B. Morton, Maryland
        Secretary of Agriculture:
                Clinton P. Anderson, New Mexico

Appendix III. Statistical Review of the Activities of the Committee on 
                             Ways and Means

      A. Number of Bills and Resolutions Referred to the Committee

    As of the close of the 104th Congress on October 4, 1996, 
there had been referred to the committee a total of 1,071 
bills, representing 20.1 percent of all the public bills 
introduced in the House of Representatives.
    The following table gives a more complete statistical 
review since 1967.

  TABLE 1.--NUMBER OF BILLS AND RESOLUTIONS REFERRED TO THE COMMITTEE,  
                      90TH THROUGH 104TH CONGRESSES                     
------------------------------------------------------------------------
                                                Referred to             
                                    Introduced   Committee              
                                     in House   on Ways and   Percentage
                                                   Means                
------------------------------------------------------------------------
90th Congress....................       24,227        3,806         15.7
91st Congress....................       23,575        3,442         14.6
92d Congress.....................       20,458        3,157         15.4
93d Congress.....................       21,096        3,370         16.0
94th Congress....................       19,371        3,747         19.3
95th Congress....................       17,800        3,922         22.0
96th Congress....................       10,196        2,337         22.9
97th Congress....................        9,909        2,377         26.4
98th Congress....................        8,104        1,904         23.5
99th Congress....................        7,522        1,568         20.8
100th Congress...................        7,043        1,419         22.1
101st Congress...................        7,640        1,737         22.7
102d Congress....................        7,771        1,972         25.4
103d Congress....................        6,645        1,496         22.5
104th Congress...................        5,329        1,071         20.1
------------------------------------------------------------------------

                           B. Public Hearings

    In the course of the 104th Congress, the full committee on 
Ways and Means held public hearings on a total of 32 days, 
including 23 days in the first session and 9 days in the second 
session. Many of these hearings dealt with major subjects 
including the Contract With America proposals, the President's 
fiscal year 1996 budget, miscellaneous tax reforms, and 
replacing the Federal income tax. The full committee also 
focused on such issues as the Federal Hospital Insurance Trust 
Fund, medicare issues, thrift bad debt recapture, and tax 
increase on transportation fuels.
    The following table specifies the statistical data on the 
number of days, witnesses, and volumes published on each of the 
subjects covered by public hearings in the full committee 
during the 104th Congress.

  TABLE 2.--PUBLIC HEARINGS CONDUCTED BY THE FULL COMMITTEE ON WAYS AND 
                                  MEANS                                 
------------------------------------------------------------------------
                                                      Number of         
              Subject and date              ----------------------------
                                               Days   Witnesses  Volumes
------------------------------------------------------------------------
1995:                                                                   
    Contract With America--Overview, Jan.                               
     5, 10, 11, 12.........................        4        51         1
    Tax Provisions in the Contract With                                 
     America Designed to Strengthen the                                 
     American Family, Jan. 17, 18, 19......        3        58         1
    Contract With America--Savings and                                  
     Investment, Jan. 24, 25, 26, 31, Feb.                              
     1.....................................        5        99         1
    President's Fiscal Year 1996 Budget,                                
     Feb. 7, 8, 9..........................        3         4         1
    Report of the Trustees of the Federal                               
     Hospital Insurance Trust Fund, May 2..        1         5         1
    Replacing the Federal Income Tax, June                              
     6, 7, 8...............................        3        43         1
    Miscellaneous Tax Reforms, July 11, 12.        2        32         1
    Saving Medicare, Sept. 22..............        1        18         1
    Thrift Bad Debt Recapture, Oct. 26.....        1         4         1
                                            ----------------------------
            Total for 1995.................       23       314         9
                                            ============================
1996:                                                                   
    Financial Condition of the Federal                                  
     Hospital Insurance Trust Fund, Feb. 29        1         3         1
    Replacing the Federal Income Tax,                                   
     Volume 2, Mar. 20, 27.................        2        16         1
    Replacing the Federal Income Tax,                                   
     Volume 3:.............................                             
        Impact on Small Business, Apr. 24..        1        15         1
        Impact on State and Local                                       
         Governments and Tax-Exempt                                     
         Entities, May 1...................        1        19         1
    Examining the Impact of the 1993 Tax                                
     Increase on Transportation Fuels, May                              
     8.....................................        1        11         1
    Financial Condition of the Medicare                                 
     Program, June 6.......................        1         2         1
    Replacing the Federal Income Tax,                                   
     Volume 4:.............................                             
        Impact on International                                         
         Competitiveness, July 18..........        1        11         1
        Impact on Manufacturing and Energy                              
         and Natural Resources, July 31....        1        10         1
                                            ----------------------------
            Total for 1996.................        9        87         6
                                            ============================
            Total for both sessions........       32       401        15
------------------------------------------------------------------------

    The five subcommittees of the Committee on Ways and Means 
were also very active in conducting public hearings during the 
104th Congress. The following table specifies in detail the 
number of days, witnesses, and volumes published by each of the 
subcommittees.

     TABLE 3.--PUBLIC HEARINGS CONDUCTED BY THE SUBCOMMITTEES OF THE    
                       COMMITTEE ON WAYS AND MEANS                      
------------------------------------------------------------------------
                                                      Number of         
              Subject and date              ----------------------------
                                               Days   Witnesses  Volumes
------------------------------------------------------------------------
           SUBCOMMITTEE ON TRADE                                        
                                                                        
1995:                                                                   
    U.S. Customs Service Reorganization and                             
     Modernization Efforts, Jan. 30........        1         7         1
    H.R. 553, the Caribbean Basin Trade                                 
     Security Act, Feb. 10.................        1        22         1
    Select Fiscal Year 1996 Budget                                      
     Proposals and Possible GSP Extension,                              
     Feb. 27...............................        1         8         1
    U.S./China Intellectual Property                                    
     Agreement and Accession to the World                               
     Trade Organization, Mar. 9............        1         1         1
    Fast Track Issues (held jointly with                                
     Subcommittee on Rules and Organization                             
     of the House of the Committee on                                   
     Rules), May 11, 17....................        2        25         1
    U.S.-China Trade Relations and Renewal                              
     of China's Most-Favored-Nation Status,                             
     May 23................................        1        20         1
    Accession of Chile to the North                                     
     American Free Trade Agreement, June 21        1        14         1
    The Economic Relationship Between the                               
     United States and Cuba After Castro,                               
     June 30...............................        1        19         1
    Rules of Origin, July 11...............        1        16         1
    Organization for Economic Cooperation                               
     and Development (OECD) Agreement on                                
     Shipbuilding, July 18.................        1        14         1
1996:                                                                   
    Implementation of Uruguay Round                                     
     Agreements and World Trade                                         
     Organization, Mar. 13.................        1        18         1
    United States-Japan Trade Relations,                                
     Mar. 28...............................        1        13         1
    The Proposed Commerce Antidumping                                   
     Regulations and Other Antidumping                                  
     Issues, Apr. 23.......................        1        18         1
    H.R. 2795, Safeguard Investigations of                              
     Perishable Agricultural Products, Apr.                             
     25....................................        1        18         1
    U.S. Trade Policy, May 20..............        1        12         1
    Iran and Libya Sanctions, May 22.......        1         3         1
    United States-China Trade Relations and                             
     Renewal of China's Most-Favored-Nation                             
     Status, June 11.......................        1        22         1
    U.S. Trade Competitiveness and Work                                 
     Force Education and Training, July 25.        1         9         1
    U.S. Trade with Sub-Saharan Africa,                                 
     Aug. 1................................        1        13         1
    World Trade Organization Singapore                                  
     Ministerial Meeting, Sept. 11.........        1        16         1
    Accession of China and Taiwan to the                                
     World Trade Organization, Sept. 19....        1        13         1
                                            ----------------------------
      Total................................       22       301        21
                                            ============================
         SUBCOMMITTEE ON OVERSIGHT                                      
                                                                        
1995:                                                                   
    Child Welfare Programs, Jan. 23........        1        11         1
    FCC Minority Tax Certificates, Jan. 27.        1        17         1
    IRS Budget Proposal for Fiscal Year                                 
     1996 and 1995 Tax Return Filing                                    
     Season, Feb. 27.......................        1         4         1
    Exploring the Development of Taxpayer                               
     Bill of Rights II Legislation, Mar. 24        1        18         1
    Administration's Proposal Relating to                               
     the Tax Treatment of Americans Who                                 
     Renounce Citizenship, Mar. 27.........        1         8         1
    Expiring Tax Provisions, May 9.........        1        36         1
    The Research and Experimentation Tax                                
     Credit and the Allocation of Research                              
     Expenses Under Internal Revenue Code                               
     Section 861, May 10...................        1        25         1
    Earned Income Tax Credit (held jointly                              
     with Subcommittee on Human Resources),                             
     June 15...............................        1        12         1
    Coal Industry Retiree Health Benefit                                
     Act of 1992, June 22..................        1        18         1
    Taxpayer Compliance Measurement                                     
     Program, July 18......................        1        12         1
1996:                                                                   
    IRS Budget for Fiscal Year 1997 and the                             
     1996 Tax Return Filing Season, Mar. 28        1         4         1
    Tax Debt Collection Issues, Apr. 25....        1        14         1
    Employment Classification Issues, June                              
     4, 20.................................        2        13         1
    Impact of Tax Law on Land Use, July 16.        1        11         1
                                            ----------------------------
      Total................................       15       203        14
                                            ============================
           SUBCOMMITTEE ON HEALTH                                       
                                                                        
1995:                                                                   
    Long-Term Care Tax Provisions in the                                
     Contract With America, Jan. 20........        1        14         1
    Health Insurance Premium Tax Deductions                             
     for the Self-Employed, Jan. 27........        1        13         1
    Medicare Hearings on Controlling Costs                              
     and Improving Care:...................        3        34         1
        Issues Regarding Extraordinary                                  
         Growth in Certain Medicare Costs,                              
         Feb. 6                                                         
        Income Relating the Part B Premium                              
         of Medicare, Feb. 7                                            
        Medicare Reform and Innovation,                                 
         Feb. 10                                                        
    Medicare Provisions in the President's                              
     Budget, Feb. 23.......................        1         8         1
    Medicare and Private Sector Health Care                             
     Quality Measurement, Assurance, and                                
     Improvement, Mar. 21..................        1        12         1
    Issues Regarding Graduate Medical                                   
     Education, Mar. 23....................        1        13         1
    Physician Payment Review Commission                                 
     Recommendations on Physician Payments,                             
     Mar. 30...............................        1         5         1
    Medicare End-Stage Renal Disease                                    
     (Kidney Failure) Program, Apr. 3......        1        11         1
    Physician Self-Referral, May 3.........        1        15         1
    Health Insurance Portability, May 12...        1         7         1
    Experience in Controlling Costs and                                 
     Improving Quality in Employer-Based                                
     Plans, May 16.........................        1         8         1
    Medicare HMO Enrollment Growth and                                  
     Payment Policies, May 24..............        1         8         1
    The Potential Role for Employers,                                   
     Associations, and Medical Savings                                  
     Accounts in the Medicare Program, May                              
     25....................................        1         8         1
    H.R. 1818, the Family Medical Savings                               
     and Investment Act, June 27...........        1        11         1
    Saving Medicare and Budget                                          
     Reconciliation Issues, July 19, 20, 25        3        51         1
    Standards for Health Plans Providing                                
     Coverage in the Medicare Program (held                             
     jointly with Subcommittee on Health                                
     and Environment of the Committee on                                
     Commerce), July 27....................        1         9         1
1996:                                                                   
    New Health Professions and Graduate                                 
     Medical Education Recommendations,                                 
     Apr. 16...............................        1         2         1
    Long-Term Care Options, Apr. 18........        1         8         1
    Recommendations Regarding Future                                    
     Directions in the Medicare Program,                                
     Apr. 30...............................        1         5         1
    Teaching Hospitals and Other Issues                                 
     Related to Graduate Medical Education,                             
     June 11...............................        1        10         1
    Administration's Medicare Choices and                               
     Competitive Pricing Demonstration                                  
     Projects, July 12.....................        1         5         1
    Issues Related to Medicare Payment                                  
     Policies for Home Health Agency and                                
     Skilled Nursing Facility Services,                                 
     July 23...............................        1         8         1
    H.R. 2976, the ``Patient Right to Know                              
     Act of 1996,'' July 30................        1        10         1
    Rural Health Care Issues, Sept. 12.....        1        10         1
    Medicare Subvention, Sept. 17..........        1         4         1
                                            ----------------------------
      Total................................       29       289        25
                                            ============================
      SUBCOMMITTEE ON SOCIAL SECURITY                                   
                                                                        
1995:                                                                   
    Social Security Earnings Limit                                      
     Provision of the Contract With                                     
     America, Jan. 9.......................        1        19         1
    Managing the Social Security Disability                             
     Insurance Program, May 23, 24, Aug. 3.        3        29         1
1996:                                                                   
    Use of Social Security Trust Fund Money                             
     to Finance Union Activities at the                                 
     Social Security Administration, June                               
     4, 27.................................        2         4         1
    Reviewing the Performance of the Social                             
     Security Administration as an                                      
     Independent Agency, July 25...........        1         3         1
    Recommendations to Improve the                                      
     Performance of the Social Security                                 
     Administration as an Independent                                   
     Agency, Sept. 12......................        1         5         1
                                            ----------------------------
      Total................................        8        60         5
                                            ============================
      SUBCOMMITTEE ON HUMAN RESOURCES                                   
                                                                        
1995:                                                                   
    Contract With America--Welfare Reform,                              
     Jan. 13, 20, 23, 27, 30, Feb. 2.......        6       153         2
    Child Care and Child Welfare (held                                  
     jointly with Subcommittee on Early                                 
     Childhood, Youth, and Families of the                              
     Committee on Economic and Educational                              
     Opportunities), Feb. 3................        1         9         1
    Child Support Enforcement Provisions                                
     Included in Personal Responsibility                                
     Act as Part of the Contract With                                   
     America, Feb. 6.......................        1        20         1
    Federal Adoption Policy, May 10........        1        10         1
    Federal Unemployment Compensation                                   
     System and Consolidation of Job                                    
     Training Programs, May 16.............        1         9         1
    Child Support Enforcement and                                       
     Supplemental Security Income, June 13.        1        11         1
    Earned Income Tax Credit (held jointly                              
     with Subcommittee on Oversight), June                              
     15....................................        1        12         1
    Welfare Reform Success Stories, Dec. 6.        1        10         1
1996:                                                                   
    The National Governors' Association                                 
     Welfare Reform Proposal, Feb. 20......        1        10         1
    Causes of Poverty, with a Focus on Out-                             
     of-Wedlock Births, Mar. 12............        1        15         1
    Welfare Reform, May 22, 23.............        2        16         1
    Barriers to Adoption, June 27..........        1        13         1
    Unemployment Insurance Issues, July 11.        1        11         1
    H.R. 3467, ``Saving Our Children: The                               
     American Community Renewal Act of                                  
     1996'' (held jointly with Subcommittee                             
     on Early Childhood, Youth and Families                             
     of the Committee on Economic and                                   
     Educational Opportunities), July 30...        1        17         1
    Implementation of Welfare Reform and                                
     Child Support Enforcement, Sept. 17,                               
     19....................................        2        13         1
                                            ----------------------------
      Total................................       22       329        16
------------------------------------------------------------------------

    As the foregoing statistics indicate, during the 104th 
Congress the full committee and its 5 subcommittees held public 
hearings aggregating a grand total of 128 days, during which 
time 1,583 witnesses were heard resulting in the publication of 
96 printed volumes of testimony. A field hearing was held by 
the Trade Subcommittee in Chicago, Illinois.
    In addition, written comments were printed after having 
been requested and received by the full committee on new 
revenue provisions in the President's fiscal year 1997 budget 
and by the Subcommittee on Trade on extension of unconditional 
most-favored-nation treatment to Cambodia, Bulgaria, and 
Romania; technical corrections to recent trade legislation; 
proposals to terminate trade adjustment assistance programs for 
workers and firms; miscellaneous trade proposals; international 
trade commission reform; and change in ``most-favored-nation'' 
terminology.

                           C. Markup Sessions

    With respect to markup or business sessions during the 
104th Congress, the full committee and its five subcommittees 
were also very actively engaged. The full committee held such 
sessions on 37 working days, usually both morning and afternoon 
sessions, and the subcommittees an aggregate of 14 working 
days, making a grand total of 51 working days of markup or 
business sessions for the committee and its subcommittees 
during the 104th Congress.

D. Number and Final Status of Bills Reported From the Committee on Ways 
                    and Means in the 104th Congress

    During the 104th Congress, the committee reported to the 
House a total of 39 bills, 37 favorably and 2 adversely. Forty-
five bills containing provisions within the purview of the 
committee were passed by the House and 26 were enacted into 
law. It should be noted that this total is not at all 
indicative of the total number of bills considered by the 
committee, because when the committee goes into session on 
major tax, tariff, Social Security, health, unemployment 
compensation, or human resources matters, it very often 
considers the broad subject rather than certain specific bills, 
and in the course of consideration of the subject makes every 
attempt to review all of the pertinent bills pending before the 
committee which are encompassed within that subject. Further, 
it is the practice of the committee normally to report bills on 
a major subject which may involve many sections containing 
subjects included in perhaps as many as several hundred bills 
pending before the committee.

Appendix IV. Chairmen of the Committee on Ways and Means and Membership 
       of the Committee From the 1st Through the 104th Congresses

    A. Chairmen of the Committee on Ways and Means, 1789 to Present

----------------------------------------------------------------------------------------------------------------
                 Name                           State                    Party               Term of service    
----------------------------------------------------------------------------------------------------------------
Thomas Fitzsimons....................  Pennsylvania...........  Federalist.............  1789.                  
William L. Smith.....................  South Carolina.........  ......do...............  1794 to 1797.          
Robert G. Harper.....................  ......do...............  ......do...............  1797 to 1800.          
Roger Griswold.......................  Connecticut............  ......do...............  1800 to 1801.          
John Randolph........................  Virginia...............  Jeffersonian Republican  1801 to 1805, 1827.    
Joseph Clay..........................  Pennsylvania...........  ......do...............  1805 to 1807.          
George W. Campbell...................  Tennessee..............  ......do...............  1807 to 1809.          
John W. Eppes........................  Virginia...............  ......do...............  1809 to 1811.          
Ezekiel Bacon........................  Massachusetts..........  ......do...............  1811 to 1812.          
Langdon Cheves.......................  South Carolina.........  ......do...............  1812 to 1813.          
John W. Eppes........................  Virginia...............  ......do...............  1813 to 1815.          
William Lowndes......................  South Carolina.........  ......do...............  1815 to 1818.          
Samuel Smith.........................  Maryland...............  ......do...............  1818 to 1822.          
Louis McLane.........................  Delaware...............  ......do...............  1822 to 1827.          
George McDuffie......................  South Carolina.........  Democrat...............  1827 to 1832.          
Gulian C. Verplanck..................  New York...............  ......do...............  1832 to 1833.          
James K. Polk........................  Tennessee..............  ......do...............  1833 to 1835.          
C. C. Cambreleng.....................  New York...............  ......do...............  1835 to 1839.          
John W. Jones........................  Virginia...............  ......do...............  1839 to 1841.          
Millard Fillmore.....................  New York...............  Whig...................  1841 to 1843.          
James Iver McKay.....................  North Carolina.........  Democrat...............  1843 to 1847.          
Samuel F. Vinton.....................  Ohio...................  Whig...................  1847 to 1849.          
Thomas H. Bayly......................  Virginia...............  Democrat...............  1849 to 1851.          
George S. Houston....................  Alabama................  ......do...............  1851 to 1855.          
Lewis D. Campbell....................  Ohio...................  Republican.............  1855 to 1857.          
J. Glancy Jones......................  Pennsylvania...........  Democrat...............  1857 to 1858.          
John S. Phelps.......................  Missouri...............  ......do...............  1858 to 1859.          
John Sherman.........................  Ohio...................  Republican.............  1859 to 1861.          
Thaddeus Stevens.....................  Pennsylvania...........  ......do...............  1861 to 1865.          
Justin S. Morrill....................  Vermont................  Republican.............  1865 to 1867.          
Robert C. Schenck....................  Ohio...................  ......do...............  1867 to 1871.          
Samuel D. Hooper.....................  Massachusetts..........  ......do...............  1871.                  
Henry L. Dawes.......................  Massachusetts..........  ......do...............  1871 to 1875.          
William R. Morrison..................  Illinois...............  Democrat...............  1875 to 1877.          
Fernando Wood........................  New York...............  ......do...............  1877 to 1881.          
John R. Tucker.......................  Virginia...............  ......do...............  1871.                  
William D. Kelley....................  Pennsylvania...........  Republican.............  1881 to 1883.          
William R. Morrison..................  Illinois...............  Democrat...............  1883 to 1887.          
Roger Q. Mills.......................  Texas..................  ......do...............  1887 to 1889.          
William McKinley, Jr.................  Ohio...................  Republican.............  1889 to 1891.          
William M. Springer..................  Illinois...............  Democrat...............  1891 to 1893.          
William L. Wilson....................  West Virginia..........  ......do...............  1893 to 1895.          
Nelson Dingley, Jr...................  Maine..................  Republican.............  1895 to 1899.          
Sereno E. Payne......................  New York...............  ......do...............  1899 to 1911.          
Oscar W. Underwood...................  Alabama................  Democrat...............  1911 to 1915.          
Claude Kitchin.......................  North Carolina.........  ......do...............  1915 to 1919.          
Joseph W. Fordney....................  Michigan...............  Republican.............  1919 to 1923.          
William R. Green.....................  Iowa...................  ......do...............  1923 to 1928.          
Willis C. Hawley.....................  Oregon.................  ......do...............  1929 to 1931.          
James W. Collier.....................  Mississippi............  Democrat...............  1931 to 1933.          
Robert L. Doughton...................  North Carolina.........  ......do...............  1933 to 1947, 1949 to  
                                                                                          1953.                 
Harold Knutson.......................  Minnesota..............  Republican.............  1947 to 1949.          
Daniel A. Reed.......................  New York...............  Republican.............  1953 to 1955.          
Jere Cooper..........................  Tennessee..............  Democrat...............  1955 to 1957.          
Wilbur D. Mills......................  Arkansas...............  ......do...............  1957 to 1975.          
Al Ullman............................  Oregon.................  ......do...............  1975 to 1981.          
Dan Rostenkowski.....................  Illinois...............  ......do...............  1981 to 1994.          
Bill Archer..........................  Texas..................  Republican.............  1995.                  
----------------------------------------------------------------------------------------------------------------

           B. Tables Showing Past Membership of the Committee

1. members of the committee on ways and means from the 1st through the 
                        104th congress, by state

                                                            Congress(es)
Alabama:
    John McKinley.......................................              23
    David Hubbard.......................................              26
    Dixon H. Lewis......................................           27-28
    George S. Houston...................................    29-30, 32-33
    James F. Dowdell....................................              35
    Hilary A. Herbert...................................              48
    Joseph Wheeler......................................           53-55
    Oscar W. Underwood..................................       56, 59-63
    Ronnie G. Flippo....................................          98-101
Arkansas:
    James K. Jones......................................              48
    Clifton R. Breckinridge.............................       49-51, 53
    William A. Oldfield.................................           64-70
    Heartsill Ragon.....................................           70-73
    William J. Driver...................................              72
    Claude A. Fuller....................................           73-75
    Wilbur D. Mills.....................................           77-94
    Jim Guy Tucker, Jr..................................              95
    Beryl Anthony, Jr...................................          97-102
California:
    Joseph McKenna......................................           51-52
    Victor H. Metcalf...................................           57-58
    James C. Needham....................................           58-62
    William E. Evans....................................              73
    Frank H. Buck.......................................           74-77
    Bertrand W. Gearhart................................           76-80
    Cecil R. King.......................................    78-79, 81-90
    James B. Utt........................................       83, 86-91
    James C. Corman.....................................           90-96
    Jerry L. Pettis.....................................           91-94
    William M. Ketchum..................................           94-95
    Fortney Pete Stark..................................             94-
    John H. Rousselot...................................           95-97
    Robert T. Matsui....................................             97-
    William M. Thomas...................................             98-
    Wally Herger........................................            103-
Colorado:
    Robert W. Bonynge...................................              60
    Charles B. Timberlake...............................           66-72
    John A. Carroll.....................................              81
    Donald G. Brotzman..................................           92-93
    George H. ``Hank'' Brown............................         100-101
Connecticut:
    Jeremiah Wadsworth..................................               1
    Uriah Tracy.........................................               3
    James Hillhouse.....................................               4
    Nathaniel Smith.....................................             4-5
    Joshua Coit.........................................               5
    Roger Griswold......................................             5-8
    John Davenport......................................               8
    Jonathan O. Moseley.................................       9, 14, 16
    Benjamin Tallmadge..................................           10-11
    Timothy Pitkin......................................       12-13, 15
    Ralph I. Ingersoll..................................           21-22
    Samuel D. Hubbard...................................              30
    James Phelps........................................           45-46
    Charles A. Russell..................................           54-57
    Ebenezer J. Hill....................................    58-62, 64-65
    John Q. Tilson......................................           66-68
    Antoni N. Sadlak....................................           83-85
    William R. Cotter...................................           94-97
    Barbara B. Kennelly.................................             98-
    Nancy L. Johnson....................................            101-
Delaware:
    John Vining.........................................               1
    Henry Latimer.......................................               3
    John Patten.........................................               4
    James A. Bayard, Sr.................................            5, 7
    Caesar A. Rodney....................................               8
    Louis McLane........................................           16-19
Florida:
    A. S. Herlong, Jr...................................           84-90
    Sam M. Gibbons......................................          91-104
    L. A. (Skip) Bafalis................................           94-97
    E. Clay Shaw, Jr....................................            100-
Georgia:
    James Jackson.......................................               1
    Abraham Baldwin.....................................             3-5
    Benjamin Taliaferro.................................               6
    John Milledge.......................................               7
    David Meriwether....................................             8-9
    William W. Bibb.....................................           12-13
    Joel Abbott.........................................              15
    Joel Crawford.......................................           15-16
    Wiley Thompson......................................           17-18
    George R. Gilmer....................................              20
    Richard H. Wilde....................................           22-23
    George W. Owens.....................................           24-25
    Charles E. Haynes...................................              25
    Mark A. Cooper......................................              26
    Absalom H. Chappell.................................              28
    Seaborn Jones.......................................              29
    Robert Toombs.......................................           30-31
    Alexander H. Stephens...............................       30-31, 33
    Marshall J. Wellborn................................              31
    Howell Cobb.........................................              34
    Martin J. Crawford..................................           35-36
    Benjamin H. Hill....................................              44
    Henry R. Harris.....................................          45, 49
    William H. Felton...................................              46
    Emory Speer.........................................              47
    James H. Blount.....................................              48
    Henry G. Turner.....................................           50-54
    Charles F. Crisp....................................              54
    James M. Griggs.....................................           60-61
    William G. Brantley.................................           61-62
    Charles R. Crisp....................................           64-72
    Albert S. Camp......................................           78-83
    Phillip M. Landrum..................................           89-94
    Ed Jenkins..........................................          95-102
    Wyche Fowler, Jr....................................           96-99
    John Lewis..........................................            103-
    Mac Collins.........................................            104-
Hawaii:
    Cecil (Cec) Heftel..................................           96-99
Illinois:
    Daniel P. Cook......................................              19
    John A. McClernand..................................              37
    John Wentworth......................................              39
    John A. Logan.......................................              40
    Samuel S. Marshall..................................              41
    Horatio C. Burchard.................................           42-45
    William R. Morrison.................................       44, 46-49
    William M. Springer.................................              52
    Albert J. Hopkins...................................           52-57
    Henry S. Boutell....................................           58-61
    Henry T. Rainey.....................................    62-66, 68-72
    John A. Sterling....................................              65
    Ira C. Copley.......................................           66-67
    Carl R. Chindblom...................................           68-72
    Chester C. Thompson.................................           74-75
    Raymond S. McKeough.................................           76-77
    Charles S. Dewey....................................              78
    Thomas J. O'Brien...................................       79, 81-88
    Noah M. Mason.......................................           80-87
    Harold R. Collier...................................           88-93
    Dan Rostenkowski....................................          88-103
    Abner J. Mikva......................................           94-96
    Philip M. Crane.....................................             94-
    Marty Russo.........................................          96-102
    Mel Reynolds........................................             103
Indiana:
    David Wallace.......................................              27
    Cyrus L. Dunham.....................................              32
    William E. Niblack..................................          40, 43
    Godlove S. Orth.....................................              41
    Michael C. Kerr.....................................              42
    Thomas M. Browne....................................           48-50
    William D. Bynum....................................          50, 53
    Benjamin F. Shively.................................              52
    George W. Steele....................................           54-57
    James E. Watson.....................................           58-60
    Edgar D. Crumpacker.................................           60-61
    Lincoln Dixon.......................................           62-65
    Harry C. Canfield...................................           71-72
    John W. Boehne, Jr..................................           73-77
    Robert A. Grant.....................................              80
    Andy Jacobs, Jr.....................................          94-104
Iowa:
    John A. Kasson......................................   38, 43, 47-48
    William B. Allison..................................           39-41
    John H. Gear........................................          51, 53
    Jonathan P. Dolliver................................           54-56
    William R. Green....................................           63-70
    C. William Ramseyer.................................           70-71
    Otha D. Wearin......................................              75
    Lloyd Thurston......................................              75
    Thomas E. Martin....................................           80-83
    Fred Grandy.........................................         102-103
    Jim Nussle..........................................            104-
Kansas:
    Dudley C. Haskell...................................              47
    Chester I. Long.....................................           56-57
    Charles Curtis......................................           58-59
    William A. Calderhead...............................           60-61
    Victor Murdock......................................              63
    Guy T. Helvering....................................           64-65
    Frank Carlson.......................................           76-79
    Martha E. Keys......................................           94-95
Kentucky:
    Alexander D. Orr....................................               3
    Christopher Greenup.................................               4
    Thomas T. Davis.....................................               5
    John Boyle..........................................               8
    Richard M. Johnson..................................           11-12
    Thomas Montgomery...................................              13
    David Trimble.......................................           15-16
    Nathan Gaither......................................              22
    John Pope...........................................              25
    Thomas F. Marshall..................................              27
    Garrett Davis.......................................              28
    Charles S. Morehead.................................           30-31
    John C. Breckinridge................................              33
    Robert Mallory......................................              38
    James B. Beck.......................................           42-43
    Henry Watterson.....................................              44
    John G. Carlisle....................................       46-47, 51
    Joseph C.S. Blackburn...............................              48
    William C.P. Breckinridge...........................           49-50
    Alexander B. Montgomery.............................           52-53
    Walter Evans........................................           54-55
    Ollie M. James......................................              62
    Augustus O. Stanley.................................              63
    Frederick M. Vinson.................................           72-75
    Noble J. Gregory....................................           78-85
    John C. Watts.......................................           86-92
    Jim Bunning.........................................            102-
Louisiana:
    Thomas B. Robertson.................................              14
    William L. Brent....................................           19-20
    Walter H. Overton...................................              21
    Lionel A. Sheldon...................................              43
    Randall L. Gibson...................................           45-46
    Charles J. Boatner..................................              54
    Samuel M. Robertson.................................           55-59
    Robert F. Broussard.................................              61
    Whitmell P. Martin..................................           65-70
    Paul H. Maloney.....................................       76, 78-79
    Thomas Hale Boggs, Sr...............................           81-91
    Joe D. Waggonner, Jr................................           92-95
    W. Henson Moore III.................................           96-99
    William J. Jefferson................................             103
    Jim McCrery.........................................            103-
    Jimmy Hayes.........................................             104
Maine:
    Peleg Sprague.......................................           19-20
    Francis O.J. Smith..................................              24
    George Evans........................................              26
    Israel Washburn, Jr.................................              36
    James G. Blaine.....................................              44
    William P. Frye.....................................              46
    Thomas B. Reed......................................    48-50, 52-53
    Nelson Dingley, Jr..................................       51, 54-55
    Daniel J. McGillicuddy..............................              64
Maryland:
    William Smith.......................................               1
    Gabriel Christie....................................               3
    William Vans Murray.................................               4
    William Hindman.....................................             4-5
    William Craik.......................................               5
    Joseph H. Nicholson.................................             6-9
    Nicholas R. Moore...................................               8
    Roger Nelson........................................               9
    John Montgomery.....................................           10-11
    Alexander McKim.....................................              13
    Stevenson Archer....................................              13
    Samuel Smith........................................           14-17
    Isaac McKim.........................................       18, 23-25
    Henry W. Davis......................................           34-36
    Phillip F. Thomas...................................              44
    David J. Lewis......................................           72-75
    Rogers C.B. Morton..................................           91-92
    Benjamin L. Cardin..................................            101-
Massachusetts:
    Elbridge Gerry......................................               1
    Fisher Ames.........................................               3
    Theodore Sedgwick...................................               4
    Theophilus Bradbury.................................               4
    Harrison Gray Otis..................................             5-6
    Samuel Sewall.......................................               5
    Isaac Parker........................................               5
    Bailey Bartlett.....................................               6
    Nathan Read.........................................               7
    Seth Hastings.......................................               8
    Josiah Quincy.......................................               9
    Ezekiel Bacon.......................................           11-12
    Ebenezer Seaver.....................................              11
    Henry Shaw..........................................              16
    Henry W. Dwight.....................................           19-21
    Benjamin Gorham.....................................              23
    Abbott Lawrence.....................................          24, 26
    Richard Fletcher....................................              25
    George N. Briggs....................................              25
    Leverett Saltonstall................................              26
    Robert C. Winthrop..................................              29
    Charles Hudson......................................              30
    George Ashmun.......................................              31
    William Appleton....................................       32-33, 37
    Alexander De Witt...................................              34
    Nathaniel P. Banks..................................          35, 45
    Samuel Hooper.......................................           37-41
    Henry L. Dawes......................................           42-43
    Chester W. Chapin...................................              44
    William A. Russell..................................           47-48
    Moses T. Stevens....................................           52-53
    Samuel W. McCall....................................           56-62
    Andrew J. Peters....................................           62-63
    Augustus P. Gardner.................................           63-65
    John J. Mitchell....................................              63
    Allen T. Treadway...................................           65-78
    Peter F. Tague......................................           67-68
    John W. McCormack...................................           72-76
    Arthur D. Healey....................................              77
    Charles L. Gifford..................................           79-80
    Angier L. Goodwin...................................       80, 82-83
    James A. Burke......................................           87-95
    James M. Shannon....................................           96-98
    Brian J. Donnelly...................................          99-102
    Richard E. Neal.....................................            103-
Michigan:
    William A. Howard...................................           34-36
    Austin Blair........................................              41
    Henry Waldron.......................................              43
    Omar D. Conger......................................              46
    Jay A. Hubbell......................................              47
    William C. Maybury..................................              49
    Julius C. Burrows...................................           50-53
    Justin R. Whiting...................................           52-53
    William A. Smith....................................              59
    Joseph W. Fordney...................................           60-67
    James C. McLaughlin.................................           68-72
    Roy O. Woodruff.....................................           73-82
    John D. Dingell.....................................           74-84
    Victor A. Knox......................................       83, 86-88
    Thaddeus M. Machrowicz..............................           84-87
    Martha W. Griffiths.................................           87-93
    Charles E. Chamberlain..............................           91-93
    Richard F. Vander Veen..............................           93-94
    Guy Vander Jagt.....................................          94-102
    William M. Brodhead.................................           95-97
    Sander M. Levin.....................................            100-
    Dave Camp...........................................            103-
Minnesota:
    Mark H. Dunnell.....................................           46-47
    James A. Tawney.....................................           54-58
    James T. McCleary...................................              59
    Winfield S. Hammond.................................           62-63
    Sydney Anderson.....................................              63
    Harold Knutson......................................           73-80
    Eugene J. McCarthy..................................           84-85
    Joseph E. Karth.....................................           92-94
    Bill Frenzel........................................          94-101
    Jim Ramstad.........................................            104-
Mississippi:
    Jacob Thompson......................................              31
    John Sharp Williams.................................           58-59
    James W. Collier....................................           63-72
    Aaron Lane Ford.....................................              77
Missouri:
    James S. Green......................................              31
    John S. Phelps......................................           32-37
    Henry T. Blow.......................................              38
    John Hogan..........................................              39
    Gustavus A. Finkelburg..............................              42
    John C. Tarsney.....................................           53-54
    Seth W. Cobb........................................              54
    Champ Clark.........................................           58-61
    Dorsey W. Shackleford...............................           62-63
    Clement C. Dickinson.............................63-66, 68-70, 72-73
    Charles L. Faust....................................           69-70
    Richard M. Duncan...................................           74-77
    Thomas B. Curtis....................................           83-90
    Frank M. Karsten....................................           84-90
    Richard A. Gephardt.................................          95-101
    Mel Hancock.........................................         103-104
Montana:
    Lee W. Metcalf......................................              86
    James F. Battin.....................................           89-91
Nebraska:
    William J. Bryan....................................           52-53
    Charles H. Sloan....................................           63-65
    Ashton C. Shallenberger.............................              73
    Carl T. Curtis......................................           79-83
    Hal Daub............................................          99-100
    Peter Hoagland......................................             103
    Jon Christensen.....................................            104-
Nevada:
    Francis G. Newlands.................................           56-57
    John Ensign.........................................            104-
New Hampshire:
    Samuel Livermore....................................               1
    Nicholas Gilman.....................................             3-4
    Abiel Foster........................................               5
    Nathaniel A. Haven..................................              11
    Henry Hubbard.......................................              23
    Charles G. Atherton.................................           25-27
    Moses Norris, Jr....................................           28-29
    Harry Hibbard.......................................           31-33
    Judd A. Gregg.......................................          99-100
New Jersey:
    Lambert Cadwalader..................................               1
    Elias Boudinot......................................               3
    Isaac Smith.........................................               4
    Thomas Sinnickson...................................               5
    James H. Imlay......................................               6
    William Coxe, Jr....................................              13
    John L. N. Stratton.................................              37
    William Hughes......................................              62
    Isaac Bacharach.....................................           66-74
    Donald H. McLean....................................           76-78
    Robert W. Kean......................................           78-85
    Henry Helstoski.....................................              94
    Frank J. Guarini....................................          96-102
    Dick Zimmer.........................................             104
New Mexico:
    Clinton P. Anderson.................................              79
New York:
    John Laurance.......................................               1
    John Watts..........................................               3
    Ezekiel Gilbert.....................................               4
    James Cochran.......................................               5
    Hezekiah L. Hosmer..................................               5
    Jonas Platt.........................................               6
    Killian K. Van Rensselaer...........................               7
    Joshua Sands........................................               8
    Erastus Root........................................              11
    John W. Taylor......................................              13
    Jonathan Fisk.......................................              13
    Thomas J. Oakley....................................              13
    James W. Wilkin.....................................              14
    James Tallmadge, Jr.................................              15
    Albert H. Tracy.....................................              16
    Nathaniel Pitcher...................................              17
    Churchill C. Cambreleng.............................    17-18, 23-25
    Dudley Marvin.......................................              19
    Gulian C. Verplanck.................................           20-22
    Aaron Vanderpoel....................................              26
    Millard Filmore.....................................              27
    Daniel D. Barnard...................................              28
    David L. Seymour....................................              28
    George O. Rathbun...................................              28
    Orville Hungerford..................................              29
    Henry Nicoll........................................              30
    James Brooks........................................31-32, 39-40, 42
    William Duer........................................              31
    Solomon G. Haven....................................              33
    Russell Sage........................................              34
    John Kelly..........................................              35
    William B. MacLay...................................              35
    Elbridge G. Spaulding...............................           36-37
    Erastus Corning.....................................              37
    Reuben E. Fenton....................................              38
    De Witt C. Littlejohn...............................              38
    Henry G. Stebbins...................................              38
    John V. L. Pruyn....................................              38
    Roscoe Conkling.....................................              39
    Charles H. Winfield.................................              39
    John A. Griswold....................................              40
    Dennis McCarthy.....................................              41
    Ellis H. Roberts....................................           42-43
    Fernando Wood.......................................           43-46
    Abram S. Hewitt.....................................           48-49
    Frank Hiscock.......................................           48-49
    Sereno E. Payne.....................................           51-63
    Roswell P. Flower...................................              51
    William B. Cochran..................................    52-53, 58-60
    George B. McClellan.................................           55-58
    John W. Dwight......................................              61
    Francis B. Harrison.................................           61-63
    Michael F. Conry....................................              64
    George W. Fairchild.................................           64-65
    John F. Carew.......................................           65-71
    Luther W. Mott......................................           66-67
    Alanson B. Houghton.................................              67
    Ogden L. Mills......................................           67-69
    Frank Crowther......................................           68-77
    Thaddeus C. Sweet...................................              70
    Frederick M. Davenport..............................           70-71
    Thomas H. Cullen....................................           71-78
    Christopher D. Sullivan.............................           72-76
    Daniel A. Reed......................................           73-86
    Walter A. Lynch.....................................           78-81
    Eugene J. Keogh.....................................           82-89
    Albert H. Bosch.....................................              86
    Steven B. Derounian.................................           87-88
    Barber B. Conable, Jr...............................           90-98
    Jacob H. Gilbert....................................           90-91
    Hugh L. Carey.......................................           91-93
    Otis G. Pike........................................           93-95
    Charles B. Rangel...................................             94-
    Thomas J. Downey....................................          96-102
    Raymond J. McGrath..................................          99-102
    Michael R. McNulty..................................   103, 104- \1\
    Amo Houghton........................................            103-
North Carolina:
    William B. Grove....................................               3
    Thomas Blount.......................................             4-5
    Robert Williams.....................................               5
    David Stone.........................................               6
    James Holland.......................................               7
    Willis Alston.......................................       10-11, 13
    William Gaston......................................           13-14
    Abraham Rencher.....................................          25, 27
    Henry W. Conner.....................................              26
    James I. McKay......................................           28-30
    Edward Stanly.......................................              32
    William M. Robbins..................................              45
    Edward W. Pou.......................................           60-61
    Claude Kitchin......................................           62-67
    Robert L. Doughton..................................           69-82
    James G. Martin.....................................           94-98
North Dakota:
    Martin N. Johnson...................................           54-55
    George M. Young.....................................           66-68
    Byron L. Dorgan.....................................          98-102
Ohio:
    William Creighton, Jr...............................              13
    Thomas R. Ross......................................              16
    Thomas Corwin.......................................           23-24
    Thomas L. Hamer.....................................              25
    Taylor Webster......................................              25
    Samson Mason........................................           26-27
    John B. Weller......................................              28
    Samuel F. Vinton....................................           29-31
    Lewis D. Campbell...................................           34-35
    John Sherman........................................              36
    Valentine B. Horton.................................              37
    George H. Pendleton.................................              38
    James A. Garfield...................................       39, 44-46
    Robert C. Schenck...................................           40-41
    Charles Foster......................................              43

\1\ Appointed January 25, 1996.
---------------------------------------------------------------------------
    Milton Sayler.......................................              45
    William McKinley, Jr................................    46-47, 49-51
    Frank H. Hurd.......................................              48
    Charles H. Grosvenor................................           53-59
    Nicholas Longworth..................................    60-62, 64-67
    Timothy T. Ansberry.................................           62-63
    Alfred G. Allen.....................................              64
    George White........................................              65
    Charles C. Kearns...................................           68-71
    Charles F. West.....................................              73
    Thomas A. Jenkins...................................           73-85
    Arthur P. Lamneck...................................           74-75
    Stephen M. Young....................................              81
    Jackson E. Betts....................................           86-92
    Donald D. Clancy....................................           93-94
    Charles A. Vanik....................................           89-96
    Bill Gradison.......................................          95-103
    Don J. Pease........................................          97-102
    Rob Portman.........................................            104-
Oklahoma:
    Thomas A. Chandler..................................              67
    James V. McClintic..................................              73
    Wesley E. Disney....................................           74-78
    James R. Jones......................................           94-99
    Bill K. Brewster....................................             103
Oregon:
    William R. Ellis....................................              61
    Willis C. Hawley....................................           65-72
    Albert C. Ullman....................................           87-96
    Mike Kopetski.......................................             103
Pennsylvania:
    Thomas Fitzsimons...................................            1, 3
    Albert Gallatin.....................................             4-6
    Henry Woods.........................................               6
    John Smilie.........................................      6-7, 10-12
    Joseph Clay.........................................             8-9
    John Rea............................................              11
    Jonathan Roberts....................................           12-13
    Samuel D. Ingham....................................       13-14, 18
    John Sergeant.......................................          15, 25
    John Tod............................................              17
    John Gilmore........................................           21-22
    Horace Binney.......................................              23
    Richard Biddle......................................              26
    Joseph R. Ingersoll.................................       24, 27-29
    James Pollock.......................................              30
    Moses Hampton.......................................              31
    J. Glancy Jones.....................................          32, 35
    John Robbins........................................              33
    James H. Campbell...................................              34
    Henry M. Phillips...................................              35
    Thaddeus Stevens....................................           36-38
    James K. Moorhead...................................           39-40
    William D. Kelley...................................           41-50
    Russell Errett......................................              47
    Samuel J. Randall...................................              47
    William L. Scott....................................              50
    Thomas M. Bayne.....................................              51
    John Dalzell........................................           52-62
    A. Mitchell Palmer..................................           62-63
    J. Hampton Moore....................................           63-66
    John J. Casey.......................................          64, 68
    Henry W. Watson.....................................           66-73
    Harris J. Bixler....................................              69
    Harry A. Estep......................................           70-72
    Thomas C. Cochran...................................              73
    Joshua T. Brooks....................................              74
    Patrick J. Boland...................................           76-77
    Benjamin Jarrett....................................           76-77
    James P. McGranery..................................           77-78
    Herman P. Eberharter................................           78-85
    Richard M. Simpson..................................           78-86
    William J. Green, Jr................................           86-88
    John A. Lafore, Jr..................................              86
    Walter M. Mumma.....................................           86-87
    George M. Rhodes....................................           88-90
    Herman T. Schneebeli................................           87-94
    William J. Green, III...............................           90-94
    Raymond F. Lederer..................................           95-96
    Dick Schulze........................................          95-102
    Donald A. Bailey....................................              97
    William J. Coyne....................................             99-
    Rick Santorum.......................................             103
    Philip S. English...................................            104-
Rhode Island:
    Benjamin Bourne.....................................             3-4
    Francis Malbone.....................................               4
    Elisha R. Potter....................................               4
    Christopher G. Champlin.............................               5
    John Brown..........................................               6
    Joseph Stanton, Jr..................................               8
    Daniel L. D. Granger................................           59-60
    George F. O'Shaunessy...............................              65
    Richard S. Aldrich..................................           69-72
    Aime J. Forand......................................           78-86
South Carolina:
    William L. Smith....................................             3-5
    Robert Goodloe Harper...............................             5-6
    Abraham Nott........................................               6
    David R. Williams...................................               9
    Langdon Cheves......................................              12
    Theodore Gourdin....................................              13
    William Lowndes.....................................           13-15
    John Taylor.........................................              14
    Thomas R. Mitchell..................................              17
    George McDuffie.....................................           18-22
    R. Barnwell Rhett...................................           25-26
    Francis W. Pickens..................................              27
    John L. McLaurin....................................           54-55
    Ken Holland.........................................           95-97
    Carroll A. Campbell, Jr.............................           98-99
Tennessee:
    Andrew Jackson......................................               4
    William C.C. Claiborne..............................               5
    William Dickson.....................................            7, 9
    George W. Campbell..................................              10
    Bennett H. Henderson................................              14
    Francis Jones.......................................           16-17
    James K. Polk.......................................           22-23
    Cave Johnson........................................              24
    George W. Jones.....................................           31-34
    Horace Maynard......................................       37, 40-42
    Benton McMillan.....................................           49-55
    James D. Richardson.................................           55-57
    Cordell Hull........................................    62-66, 68-71
    Edward E. Eslick....................................              72
    Jere Cooper.........................................           72-85
    Howard H. Baker.....................................           83-88
    James B. Frazier, Jr................................           85-87
    Ross Bass...........................................              88
    Richard H. Fulton...................................           89-94
    John J. Duncan......................................          92-100
    Harold E. Ford......................................          94-104
    Don Sundquist.......................................         101-103
Texas:
    John Hancock........................................              44
    Roger Q. Mills......................................       46, 48-51
    Joseph W. Bailey....................................              55
    Samuel B. Cooper....................................           56-58
    Choice B. Randell...................................           60-62
    John N. Garner......................................           63-71
    Morgan G. Sanders...................................           72-75
    Milton H. West......................................           76-80
    Jesse M. Combs......................................           81-82
    Frank N. Ikard......................................           84-87
    Bruce Alger.........................................           86-88
    Clark W. Thompson...................................           87-89
    George H. W. Bush...................................           90-91
    Omar T. Burleson....................................           90-95
    Bill Archer.........................................             93-
    J.J. Pickle.........................................          94-103
    Kent R. Hance.......................................           97-98
    Michael A. Andrews..................................          99-103
    Sam Johnson.........................................             104
    Greg Laughlin.......................................             104
Utah:
    Walter K. Granger...................................              82
Vermont:
    Daniel Buck.........................................               4
    Israel Smith........................................         3, 4, 7
    Lewis R. Morris.....................................               5
    James Fisk..........................................          10, 12
    Horace Everett......................................              25
    Justin S. Morrill...................................           35-39
Virginia:
    James Madison.......................................         1, 3, 4
    William B. Giles....................................               5
    Richard Brent.......................................               5
    Walter Jones........................................               5
    Leven Powell........................................               6
    John Nicholas.......................................               6
    John Randolph.......................................         7-9, 20
    James M. Garnett....................................               9
    John W. Eppes.......................................       10-11, 13
    William A. Burwell..................................       12, 14-16
    James Pleasants.....................................           12-13
    John Tyler..........................................              16
    Andrew Stevenson....................................           17-19
    Alexander Smyth.....................................           20-21
    Philip P. Barbour...................................              21
    Mark Alexander......................................           21-22
    George Loyall.......................................           23-24
    John W. Jones.......................................           25-27
    John M. Botts.......................................              27
    Thomas W. Gilmer....................................              27
    Thomas H. Bayly.....................................          28, 31
    George C. Dromgoole.................................           28-29
    James McDowell......................................              30
    John Letcher........................................           34-35
    John S. Millson.....................................              36
    John R. Tucker......................................           44-47
    Claude A. Swanson...................................           55-58
    A. Willis Robertson.................................           75-79
    Burr P. Harrison....................................       82, 84-87
    W. Pat Jennings.....................................           88-89
    Joel T. Broyhill....................................           88-93
    Joseph L. Fisher....................................           94-96
    L.F. Payne..........................................         103-104
Washington:
    Francis W. Cushman..................................              61
    Lindley H. Hadley...................................           66-72
    Samuel B. Hill......................................           71-74
    Knute Hill..........................................              77
    Otis H. Holmes......................................           80-85
    Rodney D. Chandler..................................         100-102
    Jim McDermott.......................................            102-
    Jennifer Dunn.......................................            104-
West Virginia:
    William L. Wilson...................................       50, 52-53
    Joseph H. Gaines....................................           60-61
    George M. Bowers....................................           66-67
    Hubert S. Ellis.....................................              80
Wisconsin:
    Charles Billinghurst................................              34
    Robert M. La Follette...............................              51
    Joseph W. Babcock...................................           57-59
    James A. Frear......................................    66-68, 71-73
    Thaddeus F. B. Wasielewski..........................           78-79
    John W. Byrnes......................................           80-92
    William A. Steiger..................................           94-95
    Jim Moody...........................................         100-102
    Gerald D. Kleczka...................................            103-

                B. COMMITTEE MEMBERSHIP, 104TH CONGRESS
                      Committee on Ways and Means

    One Hundred Fourth Congress

   BILL ARCHER, Texas, Chairman

SAM M. GIBBONS, Florida              PHILIP M. CRANE, Illinois
CHARLES B. RANGEL, New York          BILL THOMAS, California
FORTNEY PETE STARK, California       E. CLAY SHAW, Jr., Florida
ANDY JACOBS, Jr., Indiana            NANCY L. JOHNSON, Connecticut
HAROLD E. FORD, Tennessee            JIM BUNNING, Kentucky
ROBERT T. MATSUI, California         AMO HOUGHTON, New York
BARBARA B. KENNELLY, Connecticut     WALLY HERGER, California
WILLIAM J. COYNE, Pennsylvania       JIM McCRERY, Louisiana
SANDER M. LEVIN, Michigan            MEL HANCOCK, Missouri
BENJAMIN L. CARDIN, Maryland         DAVE CAMP, Michigan
JIM McDERMOTT, Washington            JIM RAMSTAD, Minnesota
GERALD D. KLECZKA, Wisconsin         DICK ZIMMER, New Jersey
JOHN LEWIS, Georgia                  JIM NUSSLE, Iowa
L.F. PAYNE, Virginia                 SAM JOHNSON, Texas
RICHARD E. NEAL, Massachusetts       JENNIFER DUNN, Washington
MICHAEL R. McNULTY, New York \2\     MAC COLLINS, Georgia
                                     ROB PORTMAN, Ohio
                                     JIMMY HAYES, Louisiana \2\
                                     GREG LAUGLIN, Texas \1\
                                     PHILIP S. ENGLISH, Pennsylvania
                                     JOHN ENSIGN, Nevada
                                     JON CHRISTENSEN, Nebraska

\1\ Appointed July 10, 1995.
\2\ Appointed January 25, 1996.