HR 5317 IH
106th CONGRESS
2d Session
H. R. 5317
To increase accountability for Government spending and to reduce
wasteful Government spending.
IN THE HOUSE OF REPRESENTATIVES
September 27, 2000
Mr. DEFAZIO introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on Commerce,
Armed Services, Science, Resources, Banking and Financial Services,
International Relations, Veterans' Affairs, and Intelligence (Permanent Select),
for a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To increase accountability for Government spending and to reduce
wasteful Government spending.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Comprehensive Fiscal
Responsibility and Accountability Act of 2000'.
(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--INCREASED ACCOUNTABILITY AND REDUCTION IN MEDICARE WASTE AND
FRAUD
Sec. 101. Increased medical reviews and antifraud activities.
Sec. 102. Expansion of medicare senior waste patrol nationwide.
Sec. 103. Application of inherent reasonableness to all Part B services
other than physicians' services.
Sec. 104. Implementation of commercial claims auditing systems.
TITLE II--INCREASED ACCOUNTABILITY AND REDUCTION OF WASTEFUL DEFENSE
SPENDING
Sec. 201. Cancellation of F-22 aircraft program.
Sec. 202. Cancellation of Comanche helicopter program.
Sec. 203. Cancellation of Crusader artillery program.
Sec. 204. Limitation on procurement of Virginia class attack
submarines.
Sec. 205. Termination of production of Trident D5 missiles.
Sec. 206. Reduction in nuclear delivery systems within overall limits of
START II.
Sec. 207. Creation of common NATO airlift capability and reduction of
United States costs for C-17 aircraft.
Sec. 208. Deferral of procurement of additional C-130 tactical airlift
planes.
Sec. 209. Reduction in requirements for Air Force and Navy pilots in
nonflying positions.
Sec. 210. Reduction in number of officers so as to return to
enlisted-to-officer ratio in existence in 1989.
Sec. 211. Placement of Selective Service System in `deep standby'
status.
Sec. 212. End of taxpayer support for defense industry mergers.
Sec. 213. Reduction of United States support for weapons sales abroad by
eliminating future assistance under the Foreign Military Financing
program.
Sec. 214. Limitation on proposed increases for National Missile Defense
to fiscal year 2000 levels.
Sec. 215. Reduction of Central Intelligence Agency budget by 10
percent.
TITLE III--REDUCTION AND REFORM OF ANTIENVIRONMENTAL SPENDING
Subtitle A--Program Terminations and Fees
Sec. 301. Nuclear Energy Research Initiative.
Sec. 302. National Ignition Facility.
Sec. 303. Tokamak Fusion Reactors.
Sec. 304. Diesel engine research.
Sec. 305. Nuclear waste fund fee.
Subtitle B--Mining Provisions
Sec. 313. Limitation on patent issuance.
Sec. 314. Mining claim maintenance requirements.
Sec. 315. Savings clause.
TITLE IV--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986
Sec. 401. Repeal of exclusion of certain income of foreign sales
corporations.
Sec. 402. Denial of deduction for payments of excessive
compensation.
Sec. 403. Disallowance of deductions for advertising and promotional
expenses relating to tobacco product use.
Sec. 404. Source of income from certain sales of inventory
property.
TITLE V--MISCELLANEOUS PROVISIONS TO REDUCE WASTEFUL AND INEFFICIENT
SPENDING
Sec. 501. International space station.
Sec. 502. Overseas Private Investment Corporation.
Sec. 503. Prohibition on provision of new credit by the Export-Import
Bank of the United States.
Sec. 504. Trade and Development Agency.
Sec. 505. United States international broadcasting.
Sec. 506. Joint procurement of pharmaceuticals by the Department of
Defense and the Department of Veterans Affairs.
TITLE I--INCREASED ACCOUNTABILITY AND REDUCTION IN MEDICARE WASTE AND
FRAUD
SEC. 101. INCREASED MEDICAL REVIEWS AND ANTIFRAUD ACTIVITIES.
Section 1893(d) of the Social Security Act (42 U.S.C. 1395ddd(d)) is
amended by inserting after paragraph (3) the following:
`(4) In the case of the year 2001 and each subsequent year, procedures
to ensure that--
`(A) the number of medical reviews, utilization reviews, and fraud
reviews in a fiscal year of providers of services and other individuals
and entities furnishing items and services for which payment may be made
under this title (as a percentage of total claims paid) is equal to at
least twice the number of such reviews that were conducted in fiscal year
1999;
`(B) the number of provider cost reports audited in a fiscal year is
equal to at least--
`(i) 15 percent of those submitted by a home health agency or a
skilled nursing facility; and
`(ii) twice the number of such reports that were audited in fiscal
year 1999 for those submitted by any other provider of services or any
other individual or entity furnishing items and services for which
payment may be made under this title; and
`(C) in determining which providers of services, individuals,
entities, or cost reports to review or audit, priority is placed on
providers, individuals, entities, and areas that the Secretary determines
are subject to abuse and most likely to result in mispayment or
overpayment recoveries.'.
SEC. 102. EXPANSION OF MEDICARE SENIOR WASTE PATROL NATIONWIDE.
There are authorized to be appropriated $25,000,000 in fiscal year 2002,
and such sums as are necessary for fiscal years 2003 through 2005, for the
purpose of carrying out, and expanding nationwide, the Health Care Anti-Fraud,
Waste and Abuse Community Volunteer Demonstration Projects conducted by the
Administration on Aging pursuant to the Omnibus Consolidated Appropriations
Act, 1997 (Public Law 104-208).
SEC. 103. APPLICATION OF INHERENT REASONABLENESS TO ALL PART B SERVICES
OTHER THAN PHYSICIANS' SERVICES.
(a) REPEAL OF CERTAIN PROVISIONS OF THE BALANCED BUDGET ACT OF 1997-
(1) REPEAL- Section 4316 of the Balanced Budget Act of 1997 (Public Law
105-33; 111 Stat. 390), and the amendments made by such section, are
repealed effective August 5, 1997.
(2) APPLICABILITY- Effective August 5, 1997, the Social Security Act
shall be applied and administered as if section 4316 of the Balanced Budget
Act of 1997 (Public Law 105-33; 111 Stat. 390), and the amendments made by
such section, had not been enacted.
(b) APPLICATION OF INHERENT REASONABLENESS TO ALL PART B SERVICES OTHER
THAN PHYSICIANS' SERVICES-
(1) IN GENERAL- Section 1842(b)(8) of the Social Security Act (42 U.S.C.
1395u(b)(8)) is amended to read as follows:
`(8) The Secretary shall describe by regulation the factors to be used in
determining the cases (of particular items or services) in which the
application of this part (other than to physicians' services paid under
section 1848) results in the determination of an amount that, because of its
being grossly excessive or grossly deficient, is not inherently reasonable,
and provide in those cases for the factors to be considered in establishing an
amount that is realistic and equitable.'.
(2) EFFECTIVE DATE- The amendment made by this subsection shall take
effect August 5, 1997.
SEC. 104. IMPLEMENTATION OF COMMERCIAL CLAIMS AUDITING SYSTEMS.
(a) COMMERCIAL CLAIMS AUDITING SYSTEMS-
(1) IN GENERAL- Not later than 90 days after the date of enactment of
this Act, the Secretary shall require medicare carriers to use commercial
claims auditing systems in the processing of claims under part B of the
medicare program under title XVIII of the Social Security Act (42 U.S.C.
1395j et seq.) for the purpose of identifying billing errors and
abuses.
(2) SUPPLEMENT TO OTHER TECHNOLOGY- Commercial claims auditing systems
required under paragraph (1) shall be used as a supplement to any other
information technology used by medicare carriers in processing claims under
the medicare program.
(3) UNIFORMITY- In order to ensure uniformity in processing claims under
the medicare program, the Secretary may require that medicare carriers
utilize 1 or more common commercial claims auditing systems, provided that
the selection of such system or systems by the Secretary shall be--
(A) after due consideration of competing alternative systems;
but
(B) without regard to any provision of law that requires the use of
competitive procedures (as defined in section 4 of the Office of Federal
Procurement Policy Act (41 U.S.C. 403)) or the publication of notice of
proposed procurements.
(4) IMPLEMENTATION- Commercial claims auditing systems required under
paragraph (1) shall be implemented by all medicare carriers by not later
than 180 days after the date of enactment of this Act.
(b) MINIMUM SOFTWARE REQUIREMENTS- Any commercial claims auditing system
required to be implemented pursuant to subsection (a) shall, at a minimum--
(1) be a commercial item;
(2) surpass the capability of systems currently used in the processing
of claims under part B of the medicare program; and
(A) satisfy pertinent statutory requirements of the medicare program;
and
(B) conform to policies of the Secretary regarding claims processing
under such program.
(1) IN GENERAL- Except as provided in paragraph (2), notwithstanding any
other provision of law, any information technology (or data related thereto)
utilized by medicare carriers in establishing a commercial claims auditing
system pursuant to subsection (a) shall not be subject to public
disclosure.
(2) AUTHORIZED DISCLOSURE- The Secretary may authorize the public
disclosure of the informa-
tion described in paragraph (1) if the Secretary determines that--
(A) release of such information is in the public interest;
and
(B) the information to be released is not protected from disclosure
under section 552(b) of title 5, United States Code.
(d) DEFINITIONS- In this section--
(1) COMMERCIAL CLAIMS AUDITING SYSTEM- The term `commercial claims
auditing system' means a commercial specialized auditing system that
includes edits which identify inappropriately coded health care
claims.
(2) COMMERCIAL ITEM- The term `commercial item' has the meaning given
such term in section 4 of the Office of Federal Procurement Policy Act (41
U.S.C. 403).
(3) INFORMATION TECHNOLOGY- The term `information technology' has the
meaning given such term in subparagraphs (A) and (B) of section 5002(3) of
the Information Technology Management Reform Act of 1996 (40 U.S.C.
1401(3)), were such information technology to be acquired by an executive
agency.
(4) MEDICARE CARRIER- The term `medicare carrier' means an entity that
has a contract with the Secretary pursuant to section 1842(a) of the Social
Security Act (42 U.S.C. 1395u(a)).
(5) SECRETARY- The term `Secretary' means the Secretary of Health and
Human Services.
TITLE II--INCREASED ACCOUNTABILITY AND REDUCTION OF WASTEFUL DEFENSE
SPENDING
SEC. 201. CANCELLATION OF F-22 AIRCRAFT PROGRAM.
The Secretary of the Air Force shall cancel the F-22 aircraft program. No
funds may be obligated for that program after the date of the enactment of
this Act.
SEC. 202. CANCELLATION OF COMANCHE HELICOPTER PROGRAM.
The Secretary of the Army shall cancel the Comanche helicopter program. No
funds may be obligated for that program after the date of the enactment of
this Act.
SEC. 203. CANCELLATION OF CRUSADER ARTILLERY PROGRAM.
The Secretary of the Army shall cancel the Crusader artillery program. No
funds may be obligated for that program after the date of the enactment of
this Act.
SEC. 204. LIMITATION ON PROCUREMENT OF VIRGINIA CLASS ATTACK
SUBMARINES.
Through fiscal year 2009, the Secretary of the Navy may enter into
contracts for the procurement of no more than eight Virginia class submarines
(including contracts entered into before the date of the enactment of this
Act).
SEC. 205. TERMINATION OF PRODUCTION OF TRIDENT D5 MISSILES.
No funds may be obligated after the date of the enactment of this Act for
production of Trident D5 missiles.
SEC. 206. REDUCTION IN NUCLEAR DELIVERY SYSTEMS WITHIN OVERALL LIMITS OF
START II.
The President shall take such steps as necessary to reduce the nuclear
delivery systems of the United States so as to bring the number of such
systems within the overall START II limits. For purposes of this section, the
term `overall START II limits' means the limitations on nuclear delivery
systems that would be in effect under the START II Treaty, if ratified.
SEC. 207. CREATION OF COMMON NATO AIRLIFT CAPABILITY AND REDUCTION OF UNITED
STATES COSTS FOR C-17 AIRCRAFT.
The Secretary of Defense shall seek to reach an agreement with the other
member nations of the North Atlantic Treaty Organization to establish a common
NATO airlift capability consisting of 20 C-17 aircraft with a cost-sharing
arrangement similar to that for the common NATO AWACS fleet. The 20 C-17
aircraft programmed by the Air Force for procurement in fiscal years 2002 and
2003 shall be transferred to NATO for that common NATO airlift capability upon
such an agreement being entered into.
SEC. 208. DEFERRAL OF PROCUREMENT OF ADDITIONAL C-130 TACTICAL AIRLIFT
PLANES.
The Secretary of the Air Force may not enter into a contract for
procurement of additional C-130 aircraft for fiscal years 2001 through
2005.
SEC. 209. REDUCTION IN REQUIREMENTS FOR AIR FORCE AND NAVY PILOTS IN
NONFLYING POSITIONS.
The Secretary of the Air Force and the Secretary of the Navy shall each
evaluate nonflying positions in the Air Force and the Navy, respectively, that
are currently required to be held by pilots and, to the maximum extent
practicable, shall modify the qualifications for those positions to reduce the
requirements for pilots for those positions.
SEC. 210. REDUCTION IN NUMBER OF OFFICERS SO AS TO RETURN TO
ENLISTED-TO-OFFICER RATIO IN EXISTENCE IN 1989.
The Secretary of Defense shall implement a program to reduce the ratio of
enlisted-to-officer personnel of each
of the Army, Navy, Air Force, and Marine Corps to a ratio of at least
six-to-one by not later than January 1, 2005. The Secretary shall carry out that
program through reductions in officer promotions to general and flag officer
grades and through reductions in the number of officers in pay grades O-4, O-5,
and O-6 through voluntary programs under existing provisions of law, including
temporary early retirement authority, voluntary separation incentive, and the
special separation benefit.
SEC. 211. PLACEMENT OF SELECTIVE SERVICE SYSTEM IN `DEEP STANDBY'
STATUS.
(a) RESTRICTION OF REGISTRATION REQUIREMENT TO PERIODS OF NATIONAL
EMERGENCIES- (1) Section 3(a) of the Military Selective Service Act (50 U.S.C.
App. 453(a)) is amended by inserting after `this title,' the following:
`during any period in which a declaration of national emergency is in
effect,'.
(2) Section 3 of such Act (50 U.S.C. App. 453) is further amended by
adding at the end the following new subsections:
`(c) The President shall have the authority to declare a period of
national emergency during which the registration requirements of subsection
(a) shall apply. Subject to subsection (d), the President shall provide for
the prompt termination of the declaration of national emergency upon the
termination of the national emergency.
`(d) A declaration of national emergency under subsection (c) shall
terminate upon the expiration of a 10-day period of continuous session of
Congress after the date of the declaration unless Congress enacts a law before
the end of that period ratifying that specific declaration. For purposes of
this subsection, the continuity of a session of Congress is broken only by an
adjournment of the Congress sine die, and the days on which either House is
not in session because of an adjournment of more than three days to a day
certain are excluded in the computation of the 10-day period.'.
(3) Section 12 of such Act (50 U.S.C. App. 462) is amended by adding at
the end the following new subsection:
`(h) In addition to the exception provided by subsection (g), a person may
not be denied a right, privilege, benefit, or employment position under
Federal law on the grounds that the person failed to present himself for and
submit to registration under section 3 before the date of the enactment of
this subsection.'.
(b) SUSPENSION OF ACTIVITIES OF SELECTIVE SERVICE SYSTEM BOARDS- Section
17 of such Act (50 U.S.C. App. 467) is amended by adding at the end the
following new subsection:
`(d) Except during any period in which a declaration of national emergency
is in effect under section 3--
`(1) the President may not appoint a person as a member of a civilian
local board, civilian appeal board, or similar local agency of the Selective
Service System; and
`(2) any such board established under section 10(b)(3) may not
meet.'.
(c) REPORT ON STANDBY REGISTRATION PROGRAM FOR USE DURING NATIONAL
EMERGENCIES- Not later than 150 days after the date of the enactment of this
Act, the Director of the Selective Service System shall submit to Congress a
report detailing a standby emergency manpower mobilization program to be used
by the Selective Service System during periods in which a declaration of
national emergency is in effect for the registration of persons who would be
subject to registration under section 3 of the Military Selective Service Act
(50 U.S.C. App. 453) during such a period. The report shall include an
estimate of the cost to implement and operate the standby program and an
evaluation of the feasibility of using existing and emerging information
systems available to the Government to improve the effectiveness of any
registration requirements.
SEC. 212. END OF TAXPAYER SUPPORT FOR DEFENSE INDUSTRY MERGERS.
Expenses incurred by a defense contractor related to a corporate merger
may not be considered to be an allowable cost under a Department of Defense
contract, and no funds appropriated to the Department of Defense may be used
to reimburse a contractor for any such expense.
SEC. 213. REDUCTION OF UNITED STATES SUPPORT FOR WEAPONS SALES ABROAD BY
ELIMINATING FUTURE ASSISTANCE UNDER THE FOREIGN MILITARY FINANCING PROGRAM.
After the date of the enactment of this Act, no new loan, grant, or other
assistance may be provided under the `Foreign Military Financing Program'
account under section 23 of the Arms Export Control Act (22 U.S.C. 2763).
SEC. 214. LIMITATION ON PROPOSED INCREASES FOR NATIONAL MISSILE DEFENSE TO
FISCAL YEAR 2000 LEVELS.
The amount appropriated for the National Missile Defense program of the
Department of Defense for any fiscal year may not exceed the amount
appropriated for that program for fiscal year 2000, adjusted for inflation.
SEC. 215. REDUCTION OF CENTRAL INTELLIGENCE AGENCY BUDGET BY 10
PERCENT.
The total amount obligated for programs and activities of the Central
Intelligence Agency for fiscal year 2001 may not exceed 90 percent of the
total amount obligated for programs and activities of the Central Intelligence
Agency for fiscal year 2000.
TITLE III--REDUCTION AND REFORM OF ANTIENVIRONMENTAL
SPENDING
Subtitle A--Program Terminations and Fees
SEC. 301. NUCLEAR ENERGY RESEARCH INITIATIVE.
The Department of Energy shall not obligate any further funding for the
Nuclear Energy Research Initiative.
SEC. 302. NATIONAL IGNITION FACILITY.
The Department of Energy shall not obligate any further funding for the
National Ignition Facility.
SEC. 303. TOKAMAK FUSION REACTORS.
The Department of Energy shall not obligate any further funding for
Tokamak fusion reactors.
SEC. 304. DIESEL ENGINE RESEARCH.
The Department of Energy shall not obligate any further funding for
research on diesel engines for cars and light trucks.
SEC. 305. NUCLEAR WASTE FUND FEE.
(a) FEE ADJUSTMENT- Section 302(a)(2) of the Nuclear Waste Policy Act of
1982 is amended by adding at the end the following new sentence: `The
Secretary shall adjust the fee annually for inflation.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
90 days after the date of enactment of this section.
Subtitle B--Mining Provisions
SEC. 311. DEFINITIONS.
For purposes of subtitle:
(1) The term `locatable mineral' means any mineral not subject to
disposition under any of the following:
(A) The Mineral Leasing Act (30 U.S.C. 181 et seq.).
(B) The Geothermal Steam Act of 1970 (30 U.S.C. 100 et seq.).
(C) The Act of July 31, 1947, commonly known as the Materials Act of
1947 (30 U.S.C. 601 et seq.).
(D) The Mineral Leasing for Acquired Lands Act (30 U.S.C. 351 et
seq.).
(2) The term `mineral activities' means any activity for, related to or
incidental to mineral exploration, mining, beneficiation and processing
activities for any locatable mineral, including access. When used with
respect to this term:
(A) The term `exploration' means those techniques employed to locate
the presence of a locatable mineral deposit and to establish its nature,
position, size, shape, grade and value.
(B) The term `mining' means the processes employed for the extraction
of a locatable mineral from the earth.
(C) The term `beneficiation' means the crushing and grinding of
locatable mineral ore and such processes as are employed to free the
mineral from other constituents, including but not necessarily limited to,
physical and chemical separation techniques.
(D) The term `processing' means processes downstream of beneficiation
employed to prepare locatable mineral ore into the final marketable
product, including but not limited to, smelting and electrolytic
refining.
(3) The term `mining claim' means a claim for the purposes of mineral
activities.
(4) The term `net smelter return' shall have the same meaning as the
term defined in section 613(c)(1) of the Internal Revenue Code.
(5) The term `Secretary' means the Secretary of the Interior acting
through the Director of the Minerals Management Service.
(6) The term `substantial underreporting' means the difference between
the royalty on the value of the production which should have been reported
and the royalty on the value of the production which was reported, if the
value which should have been reported is greater than the value which was
reported. An underreporting constitutes a `substantial underreporting' if
such difference exceeds 10 percent of the royalty on the value of production
which should have been reported.
SEC. 312. ROYALTIES.
(a) RESERVATION OF ROYALTY- Production of all locatable minerals from any
mining claim located or converted under the general mining laws, or mineral
concentrates or products derived from locatable minerals from any mining claim
located or converted under the general mining laws, as the case may be, shall
be subject to a royalty of 8 percent of the net smelter return from such
production. The claim holder and any operator to whom the claim holder has
assigned the obligation to make royalty payments under the claim and any
person who
controls such claim holder or operator shall be jointly and severally liable
for payment of such royalties.
(b) DUTIES OF CLAIM HOLDERS, OPERATORS, AND TRANSPORTERS- (1) A
person--
(A) who is required to make any royalty payment under this section shall
make such payments to the United States at such times and in such manner as
the Secretary may by rule prescribe; and
(B) shall notify the Secretary, in the time and manner as may be
specified by the Secretary, of any assignment that such person may have made
of the obligation to make any royalty or other payment under a mining
claim.
(2) Any person paying royalties under this section shall file a written
instrument, together with the first royalty payment, affirming that such
person is liable to the Secretary for making proper payments for all amounts
due for all time periods for which such person as a payment responsibility.
Such liability for the period referred to in the preceding sentence shall
include any and all additional amounts billed by the Secretary and determined
to be due by final agency or judicial action. Any person liable for royalty
payments under this section who assigns any payment obligation shall remain
jointly and severally liable for all royalty payments due for the claim for
the period.
(3) A person conducting mineral activities shall--
(A) develop and comply with the site security provisions in operations
permit designed to protect from theft the locatable minerals, concentrates
or products derived therefrom which are produced or stored on a mining
claim, and such provisions shall conform with such minimum standards as the
Secretary may prescribe by rule, taking into account the variety of
circumstances on mining claims; and
(B) not later than the 5th business day after production begins anywhere
on a mining claim, or production resumes after more than 90 days after
production was suspended, notify the Secretary, in the manner prescribed by
the Secretary, of the date on which such production has begun or
resumed.
(4) The Secretary may by rule require any person engaged in transporting a
locatable mineral, concentrate, or product derived therefrom to carry on his
or her person, in his or her vehicle, or in his or her immediate control,
documentation showing, at a minimum, the amount, origin, and intended
destination of the locatable mineral, concentrate, or product derived
therefrom in such circumstances as the Secretary determines is appropriate.
(c) RECORDKEEPING AND REPORTING REQUIREMENTS- (1) A claim holder,
operator, or other person directly involved in developing, producing,
processing, transporting, purchasing, or selling locatable minerals,
concentrates, or products derived therefrom, subject to this Act, through the
point of royalty computation shall establish and maintain any records, make
any reports, and provide any information that the Secretary may reasonably
require for the purposes of implementing this section or determining
compliance with rules or orders under this section. Such records shall
include, but not be limited to, periodic reports, records, documents, and
other data. Such reports may also include, but not be limited to, pertinent
technical and financial data relating to the quantity, quality, composition
volume, weight, and assay of all minerals extracted from the mining claim.
Upon the request of any officer or employee duly designated by the Secretary
or any State conducting an audit or investigation pursuant to this section,
the appropriate records, reports, or information which may be required by this
section shall be made available for inspection and duplication by such officer
or employee or State.
(2) Records required by the Secretary under this section shall be
maintained for 6 years after cessation of all mining activity at the claim
concerned unless the Secretary notifies the operator that he or she has
initiated an audit or investigation involving such records and that such
records must be maintained for a longer period. In any case when an audit or
investigation is underway, records shall be maintained until the Secretary
releases the operator of the obligation to maintain such records.
(d) AUDITS- The Secretary is authorized to conduct such audits of all
claim holders, operators, transporters, purchasers, processors, or other
persons directly or indirectly involved in the production or sales of minerals
covered by this Act, as the Secretary deems necessary for the purposes of
ensuring compliance with the requirements of this section. For purposes of
performing such audits, the Secretary shall, at reasonable times and upon
request, have access to, and may copy, all books, papers and other documents
that relate to compliance with any provision of this section by any person.
(e) COOPERATIVE AGREEMENTS- (1) The Secretary is authorized to enter into
cooperative agreements with the Secretary of Agriculture to share information
concerning the royalty management of locatable minerals, concentrates, or
products derived therefrom, to carry out inspection, auditing, investigation,
or enforcement (not including the collection of royalties, civil or criminal
penalties, or other payments) activities under this section in cooperation
with the Secretary, and to carry out any other activity described in this
section.
(2) Except as provided in paragraph (4)(A) of this subsection (relating to
trade secrets), and pursuant to a cooperative agreement, the Secretary of
Agriculture shall, upon request, have access to all royalty accounting
information in the possession of the Secretary respecting the production,
removal, or sale of locatable minerals, concentrates, or products derived
therefrom from claims on lands open to location under the general mining
laws.
(3) Trade secrets, proprietary, and other confidential information shall
be made available by the Secretary pursuant to a cooperative agreement under
this subsection to the Secretary of Agriculture upon request only if--
(A) the Secretary of Agriculture consents in writing to restrict the
dissemination of the information to those who are directly involved in an
audit or investigation under this section and who have a need to know;
(B) the Secretary of Agriculture accepts liability for wrongful
disclosure; and
(C) the Secretary of Agriculture demonstrates that such information is
essential to the conduct of an audit or investigation under this
subsection.
(f) INTEREST AND SUBSTANTIAL UNDERREPORTING ASSESSMENTS- (1) In the case
of mining claims where royalty payments are not received by the Secretary on
the date that such payments are due, the Secretary shall charge interest on
such underpayments at the same interest rate as is applicable under section
6621(a)(2) of the Internal Revenue Code of 1986. In the case of an
underpayment, interest shall be computed and charged only on the amount of the
deficiency and not on the total amount.
(2) If there is any underreporting of royalty owed on production from a
claim for any production month by any person liable for royalty payments under
this section, the Secretary may assess a penalty of 10 percent of the amount
of that underreporting.
(3) If there is a substantial underreporting of royalty owed on production
from a claim for any production month by any person responsible for paying the
royalty, the Secretary may assess a penalty of 10 percent of the amount of
that underreporting.
(4) The Secretary shall not impose the assessment provided in paragraph
(2) or (3) of this subsection if the person liable for royalty payments under
this section corrects the underreporting before the date such person receives
notice from the Secretary that an underreporting may have occurred, or before
90 days after the date of the enactment of this section, whichever is
later.
(5) The Secretary shall waive any portion of an assessment under paragraph
(2) or (3) of this subsection attributable to that portion of the
underreporting for which the person responsible for paying the royalty
demonstrates that--
(A) such person had written authorization from the Secretary to report
royalty on the value of the production on basis on which it was
reported;
(B) such person had substantial authority for reporting royalty on the
value of the production on the basis on which it was reported;
(C) such person previously had notified the Secretary, in such manner as
the Secretary may by rule prescribe, of relevant reasons or facts affecting
the royalty treatment of specific production which led to the
underreporting; or
(D) such person meets any other exception which the Secretary may, by
rule, establish.
(6) All penalties collected under this subsection shall be deposited in
the Treasury.
(g) EXPANDED ROYALTY OBLIGATIONS- Each person liable for royalty payments
under this section shall be jointly and severally liable for royalty on all
locatable minerals, concentrates, or products derived therefrom lost or wasted
from a mining claim located or converted under this section when such loss or
waste is due to negligence on the part of any person or due to the failure to
comply with any rule, regulation, or order issued under this section.
(h) EXCEPTION- No royalty shall be payable under subsection (a) with
respect to minerals processed at a facility by the same person or entity which
extracted the minerals if an urban development action grant has been made
under section 119 of the Housing and Community Development Act of 1974 with
respect to any portion of such facility.
(i) EFFECTIVE DATE- The royalty under this section shall take effect with
respect to the production of locatable minerals after the enactment of this
Act, but any royalty payments attributable to production during the first 12
calendar months after the enactment of this section shall be payable at the
expiration of such 12-month period.
SEC. 313. LIMITATION ON PATENT ISSUANCE.
(a) MINING CLAIMS- After September 27, 2000, no patent shall be issued by
the United States for any mining claim located under the general mining laws
or under this Act unless the Secretary determines that, for the claim
concerned--
(1) a patent application was filed with the Secretary on or before
September 27, 2000; and
(2) all requirements established under sections 2325 and 2326 of the
Revised Statutes (30 U.S.C. 29 and 30) for vein or lode claims and sections
2329, 2330, 2331, and 2333 of the Revised Statutes (30 U.S.C. 35, 36, and
37) for placer claims were fully complied with by that date.
If the Secretary makes the determinations referred to in paragraphs (1)
and (2) for any mining claim, the holder of the claim shall be entitled to the
issuance of a patent in the same manner and degree to which such claim holder
would have been entitled to prior to the enactment of this Act, unless and
until such determinations are withdrawn or invalidated by the Secretary or by
a court of the United States.
(b) MILL SITES- After September 27, 2000, no patent shall be issued by the
United States for any mill site claim located under the general mining laws
unless the Secretary determines that for the mill site concerned--
(1) a patent application for such land was filed with the Secretary on
or before September 27, 2000; and
(2) all requirements applicable to such patent application were fully
complied with by that date.
If the Secretary makes the determinations referred to in paragraphs (1)
and (2) for any mill site claim, the holder of the claim shall be entitled to
the issuance of a patent in the same manner and degree to which such claim
holder would have been entitled to prior to the enactment of this section,
unless and until such determinations are withdrawn or invalidated by the
Secretary or by a court of the United States.
SEC. 314. MINING CLAIM MAINTENANCE REQUIREMENTS.
(a) IN GENERAL- (1) The holder of each mining claim converted under the
general mining laws shall pay to the Secretary an annual claim maintenance fee
of $100 per claim.
(2) The holder of each mining claim located pursuant to the general mining
laws shall pay to the Secretary an annual claim maintenance fee of $200 per
claim.
(b) TIME OF PAYMENT- The claim maintenance fee payable pursuant to
subsection (a) for any year shall be paid on or before August 31 of each year,
except that in the case of claims referred to in subsection (a)(2), for the
initial calendar year in which the location is made, the locator shall pay the
initial claim maintenance fee at the time the location notice is recorded with
the Bureau of Land Management.
(c) OIL SHALE CLAIMS SUBJECT TO CLAIM MAINTENANCE FEES UNDER ENERGY POLICY
ACT OF 1992- This section shall not apply to any oil shale claims for which a
fee is required to be paid under section 2511(e)(2) of the Energy Policy Act
of 1992 (Public Law 102-486; 106 Stat. 3111; 30 U.S.C. 242).
(d) CLAIM MAINTENANCE FEES PAYABLE UNDER 1993 ACT- The claim maintenance
fees payable under this section for any period with respect to any claim shall
be reduced by the amount of the claim maintenance fees paid under section
10101 of the Omnibus Budget Reconciliation Act of 1993 with respect to that
claim and with respect to the same period.
(e) WAIVER- (1) The claim maintenance fee required under this section may
be waived for a claim holder who certifies in writing to the Secretary that on
the date the payment was due, the claim holder and all related parties held
not more than 10 mining claims on lands open to location. Such certification
shall be made on or before the date on which payment is due.
(2) For purposes of paragraph (1), with respect to any claim holder, the
term `related party' means each of the following:
(A) The spouse and dependent children (as defined in section 152 of the
Internal Revenue Code of 1986), of the claim holder.
(B) Any affiliate of the claim holder.
(f) CO-OWNERSHIP- Upon the failure of any one or more of several co-owners
to contribute such co-owner or owners' portion of the fee under this section,
any co-owner who has paid such fee may, after the payment due date, give the
delinquent co-owner or owners notice of such failure in writing (or by
publication in the newspaper nearest the claim for at least once a week for at
least 90 days). If at the expiration of 90 days after such notice in writing
or by publication, any delinquent co-owner fails or refuses to contribute his
portion, his interest in the claim shall become the property of the co-owners
who have paid the required fee.
(g) CREDIT AGAINST ROYALTY- The amount of the annual claim maintenance fee
required to be paid under this section for any claim for any period shall be
credited against the amount of royalty required to be paid under section 312
for the same period with respect to that claim.
(h) PURCHASING POWER ADJUSTMENT- The Secretary shall adjust all dollar
amounts established in this section for changes in the purchasing power of the
dollar every 10 years following the date of enactment of this section,
employing the Consumer Price Index for all urban consumers published by the
Department of Labor as the basis for adjustment, and rounding according to
the
adjustment process of conditions of the Federal Civil Penalties Inflation
Adjustment Act of 1990 (104 Stat. 890).
SEC. 315. SAVINGS CLAUSE.
Nothing in sections 312, 313, or 314 shall be construed as repealing or
modifying any Federal law, regulation, order, or land use plan, in effect
prior to the effective date of such section, that prohibits or restricts the
application of the general mining laws, including such laws that provide for
special management criteria for operations under the general mining laws as in
effect prior to the effective date of such section, to the extent such laws
provide environmental protection greater than required under the general
mining laws.
TITLE IV--AMENDMENTS OF INTERNAL REVENUE CODE OF 1986
SEC. 401. REPEAL OF EXCLUSION OF CERTAIN INCOME OF FOREIGN SALES
CORPORATIONS.
(a) IN GENERAL- Section 921 of the Internal Revenue Code of 1986 (relating
to exempt foreign trade income excluded from gross income) is amended by
adding at the end the following new subsection:
`(e) TERMINATION- This subpart shall not apply to any taxable year
beginning after December 31, 2000.'
(b) EFFECTIVE DATE- The amendment made by this section shall apply to
taxable years beginning after December 31, 2000.
SEC. 402. DENIAL OF DEDUCTION FOR PAYMENTS OF EXCESSIVE COMPENSATION.
(a) IN GENERAL- Section 162 of the Internal Revenue Code of 1986 (relating
to deduction for trade or business expenses) is amended by inserting after
subsection (h) the following new subsection:
`(i) EXCESSIVE COMPENSATION-
`(1) IN GENERAL- No deduction shall be allowed under this chapter for
any excessive compensation with respect to any full-time employee.
`(2) EXCESSIVE COMPENSATION- For purposes of this subsection, the term
`excessive compensation' means, with respect to any employee, the amount by
which--
`(A) the compensation for services performed by such employee during
the taxable year, exceeds
`(B) an amount equal to 25 times the lowest compensation for services
performed by any other full-time employee during such taxable
year.
`(3) DEFINITIONS AND SPECIAL RULES- For purposes of this
subsection--
`(i) IN GENERAL- The term `compensation' means salary, wages, and
bonuses.
`(ii) PART-YEAR EMPLOYEES- In the case of any part-year employee,
the compensation of the employee shall be computed on an annualized
basis.
`(B) EMPLOYER- All persons treated as a single employer under
subsection (a) or (b) of section 52 or subsection (m) or (o) of section
414 shall be treated as 1 employer.'
(b) EFFECTIVE DATE- The amendment made by this section shall apply to
taxable years beginning after the date of the enactment of this Act.
SEC. 403. DISALLOWANCE OF DEDUCTIONS FOR ADVERTISING AND PROMOTIONAL
EXPENSES RELATING TO TOBACCO PRODUCT USE.
(a) IN GENERAL- Part IX of subchapter B of chapter 1 of subtitle A of the
Internal Revenue Code of 1986 (relating to items not deductible) is amended by
adding at the end the following new section:
`SEC. 280I. DISALLOWANCE OF DEDUCTION FOR TOBACCO ADVERTISING AND
PROMOTIONAL EXPENSES.
No deduction shall be allowed under this chapter for expenses relating to
advertising or promoting cigars, cigarettes, smokeless tobacco, pipe tobacco,
or any similar tobacco product. For purposes of this section, any term used in
this section which is also used in section 5702 shall have the same meaning
given such term by section 5702.'
(b) CONFORMING AMENDMENT- The table of sections for such part IX is
amended by adding after the item relating to section 280H the following new
item:
`Sec. 280I. Disallowance of deduction for tobacco advertising and promotion
expenses.'
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years ending after December 31, 2000.
SEC. 404. SOURCE OF INCOME FROM CERTAIN SALES OF INVENTORY PROPERTY.
(a) GENERAL RULE- Subsection (b) of section 865 of the Internal Revenue
Code of 1986 (relating to exception for inventory property) is amended to read
as follows:
`(b) EXCEPTION FOR INVENTORY PROPERTY-
`(1) IN GENERAL- Except as otherwise provided in this subsection, income
derived from the sale of inventory property shall be sourced under the
rules of sections 861(a)(6), 862(a)(6), and 863 and this section shall not
apply.
`(2) TREATMENT OF CERTAIN SALES TO RELATED PERSONS-
`(A) IN GENERAL- If any inventory property produced (in whole or in
part) by the taxpayer is sold by the taxpayer (directly or indirectly) to
a related person--
`(i) the portion determined under subparagraph (B) of the income
from such sale shall be sourced in the United States or outside the
United States depending on where the production activities occur,
and
`(ii) the remaining portion of such income shall be sourced under
the rules of sections 861(a)(6), 862(a)(6), and 863.
`(B) AMOUNT APPORTIONED TO PRODUCTION ACTIVITIES- For purposes of
subparagraph (A), the portion determined under this subparagraph is so
much of the income from the sale as does not exceed the greater
of--
`(i) the portion of such income apportioned to production activities
under section 863(b), or
`(ii) the portion of the combined income of the taxpayer and related
person attributable to such property which would have been apportioned
to production activities under section 863(b) if such taxpayer and
related person were one taxpayer.
`(C) RELATED PERSON- For purposes of this paragraph, the term `related
person' means any person related (within the meaning of section 482) to
the taxpayer.
`(3) CERTAIN SALES FOR USE IN UNITED STATES- If--
`(A) a United States resident sells (directly or indirectly) inventory
property to another United States resident for use, consumption, or
disposition in the United States, and
`(B) such sale is not attributable to an office or other fixed place
of business maintained by such United States resident outside the United
States,
any income of such United States resident (or any related person) from
such sale shall be sourced in the United States.'
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
sales after December 31, 2000.
TITLE V--MISCELLANEOUS PROVISIONS TO REDUCE WASTEFUL AND INEFFICIENT
SPENDING
SEC. 501. INTERNATIONAL SPACE STATION.
The National Aeronautics and Space Administration shall not obligate any
further funding for the International Space Station.
SEC. 502. OVERSEAS PRIVATE INVESTMENT CORPORATION.
(a) PROHIBITION ON NEW CONTRACTS- The Overseas Private Investment
Corporation may not, on or after the date of enactment of this Act, issue any
contract of insurance or reinsurance, or any guaranty, or enter into any
agreement to provide financing.
(b) EXISTING CONTRACTS- Subsection (a) does not require the termination of
any contract or other agreement entered into before the date of enactment of
this Act.
SEC. 503. PROHIBITION ON PROVISION OF NEW CREDIT BY THE EXPORT-IMPORT BANK
OF THE UNITED STATES.
Notwithstanding any other provision of law, the Export-Import Bank of the
United States may not, on or after the date of the enactment of this Act,
provide any guarantee, insurance, or extension of credit, or participate in
any extension of credit, except pursuant to a commitment made by the
Export-Import Bank of the United States before such date of enactment.
SEC. 504. TRADE AND DEVELOPMENT AGENCY.
(a) TERMINATION OF AGENCY- Effective on the date of enactment of this Act,
the Trade and Development Agency is abolished.
(b) ADMINISTRATION OF EXISTING OBLIGATIONS- The Secretary of State shall
carry out the functions performed on the day before the date of enactment of
this Act by the Trade and Development Agency only for purposes of
administering contracts or agreements issued or entered into by the Trade and
Development Agency before the date of enactment of this Act that are effective
on such date of enactment. Such functions shall terminate when all such
contracts and agreements expire.
(c) TERMINATION OF PROVISIONS- Section 661 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2191 and following) is repealed, effective on the date of
enactment of this Act, except that such section shall continue in effect with
respect to the functions performed by the Secretary of State under subsection
(b).
(d) TERMINATION OF AFFAIRS- The Director of the Office of Management and
Budget shall take the necessary steps to terminate the affairs of the Trade
and Development Agency.
(e) APPROPRIATIONS- Funds available to the Trade and Development Agency
shall, on the date of enactment of this Act, be transferred to the Secretary
of State for use in performing the functions of the Trade and Development
Agency under subsection (b). Upon the expiration of the contracts and
agreements with respect to which the Secretary of State is exercising such
functions, any unexpended balances of the funds transferred under this
subsection shall be deposited in the Treasury as miscellaneous receipts.
SEC. 505. UNITED STATES INTERNATIONAL BROADCASTING.
(a) TERMINATION OF BROADCASTING TO CUBA- Effective October 1, 2001, the
Television Broadcasting to Cuba Act (22 U.S.C. 1465aa and following) and the
Radio Broadcasting to Cuba Act (22 U.S.C. 1465 and following) are repealed.
(b) AUTHORIZATIONS OF APPROPRIATIONS FOR INTERNATIONAL BROADCASTING
OPERATIONS- For `International Broadcasting Operations' (including Radio Free
Europe/Radio Liberty, Voice of America, and Radio Free Asia), there are
authorized to be appropriated $196,800,000, for the fiscal year 2002, .
(c) AUTHORIZATION OF APPROPRIATIONS FOR RADIO FREE ASIA- For `Radio Free
Asia', there are authorized to be appropriated $15,000,000, for the fiscal
year 2002, .
SEC. 506. JOINT PROCUREMENT OF PHARMACEUTICALS BY THE DEPARTMENT OF DEFENSE
AND THE DEPARTMENT OF VETERANS AFFAIRS.
The Secretary of Defense and the Secretary of Veterans Affairs shall--
(1) establish a joint office for the procurement of pharmaceuticals for
the Department of Defense and the Department of Veterans Affairs; and
(2) jointly develop and implement a common clinically-based formulary
for the pharmaceutical programs of the Department of Defense and the
Department of Veterans Affairs.
END