SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Conservation Security Act of 1999''.

SEC. 2. CONSERVATION SECURITY PROGRAM.

    Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3830 et seq.) is amended by adding at the end the following:

               ``CHAPTER 6--CONSERVATION SECURITY PROGRAM

``SEC. 1240P. CONSERVATION SECURITY PROGRAM.

    ``(a) In General.--The Secretary shall establish a conservation
security program through the use of contracts to assist owners and
operators of farms and ranches to promote--
            ``(1) conservation of soil, water, and related resources;
            ``(2) water quality protection and improvement;
            ``(3) air quality protection and improvement;
            ``(4) wetland restoration, protection, and creation;
            ``(5) wildlife habitat development and protection; and
            ``(6) any similar conservation purpose.
    ``(b) Eligibility.--
            ``(1) In general.--To be eligible to participate in the
        conservation security program, an owner or operator shall--
                    ``(A) submit a resource security plan or a
                livestock nutrient management plan to the Secretary,
                and obtain the approval of the Secretary for the plan,
                in accordance with subsection (c); and
                    ``(B) enter into a contract with the Secretary that
                requires compliance with the plan in accordance with
                subsection (e).
            ``(2) Limitation.--An owner or operator shall not be
        eligible to enter into a contract specifying compliance with a
        livestock nutrient management plan if the total number of
        animals raised by the owner or operator exceeds 1,000 animal
        units, as defined by the Secretary.
    ``(c) Plans.--
            ``(1) Resource security plans.--A resource security plan
        shall--
                    ``(A) identify the resources to be secured by the
                plan;
                    ``(B) describe the class of conservation practices
                under subsection (d) to be implemented and maintained
                on the land subject to the contract during the contract
                period;
                    ``(C) contain a schedule for the implementation and
                maintenance of the class of conservation practices
                described in the plan;
                    ``(D) comply with the highly erodible land and
                wetland conservation requirements of subtitles B and C;
                and
                    ``(E) contain such other terms as the Secretary may
                require.
            ``(2) Livestock nutrient management plans.--A livestock
        nutrient management plan shall--
                    ``(A) contain a plan for managing the manure and
                other organic byproducts produced on the farming or
                ranching operation of an owner or operator in a manner
                that protects air, water, and soil quality; and
                    ``(B) contain such other terms as the Secretary may
                require.
            ``(3) State and local conservation priorities.--To the
        maximum extent practicable and in a manner that is consistent
        with the conservation security program, resource security plans
        and livestock nutrient management plans shall address the
        conservation priorities established by the State and locality
        in which the farming or ranching operation is located.
    ``(d) Conservation Practices Under Resource Security Plans.--
            ``(1) In general.--The Secretary shall establish 3 classes
        of conservation practices that are eligible for payment under a
        contract entered into under this section to carry out a
        resource security plan.
            ``(2) Inclusion of certain practices.--The Secretary shall
        include in 1 of the classes of conservation practices--
                    ``(A) each environmental or conservation practice
                that is included in the National Handbook of
                Conservation Practices of the Natural Resources
                Conservation Service; and
                    ``(B) any other conservation practice the Secretary
                determines is appropriate.
            ``(3) Classes.--To carry out this subsection, the Secretary
        shall establish the following 3 classes of conservation
        practices (as appropriate for the farm or ranch operation of an
        owner or operator):
                    ``(A) Class i.--Class I conservation practices
                shall include--
                            ``(i) residue management;
                            ``(ii) nutrient management; and
                            ``(iii) environmentally sound grazing.
                    ``(B) Class ii.--Class II conservation practices
                shall include--
                            ``(i) Class I conservation practices;
                            ``(ii) comprehensive nutrient management;
                            ``(iii) pesticide management;
                            ``(iv) partial field conservation practices
                        (including windbreaks, grass waterways, shelter
                        belts, filter strips and riparian buffers); and
                            ``(v) intensive grazing and wildlife
                        habitat measures.
                    ``(C) Class iii.--Class III conservation practices
                shall include--
                            ``(i) Class I and Class II conservation
                        practices; and
                            ``(ii) such additional conservation
                        practices as are necessary to implement and
                        maintain a total resource management plan that
                        addresses the long-term sustainability of the
                        natural resource base of a farm or ranch
                        operation.
    ``(e) Contracts.--
            ``(1) In general.--On approval of a resource security plan
        or a livestock nutrient management plan of an owner or
        operator, the Secretary shall enter into a contract with the
        owner or operator that specifies--
                    ``(A) the land subject to the contract;
                    ``(B) in the case of a resource security plan, the
                class of conservation practices under subsection (d)
                that will be carried out on the land; and
                    ``(C) in the case of a livestock nutrient
                management plan, the livestock facilities that are
                covered by the contract.
            ``(2) Duration.--Subject to paragraphs (3) and (4), the
        contract shall be for a term of not less than 3 years nor more
        than 5 years.
            ``(3) Revision.--The Secretary may require an owner or
        operator to modify a resource security plan or livestock
        nutrient management plan before the expiration of the plan if
        the Secretary determines that a change made to the size,
        management, or any other aspect of the farming or ranching
        operation of the owner or operator would, without the
        modification, interfere with the conservation security program.
            ``(4) Renewal.--The contract of the owner or operator may
        be renewed for successive 5-year periods, at the option of the
        owner or operator, if--
                    ``(A) the owner or operator agrees to any
                modification of the applicable resource security plan
                or the livestock nutrient management plan that the
                Secretary determines is necessary to carry out the
                conservation security program; and
                    ``(B) the Secretary determines that the owner or
                operator has complied with--
                            ``(i) the terms and conditions of the
                        applicable resource security plan or a
                        livestock nutrient management plan of the owner
                        or operator; and
                            ``(ii) the terms and conditions of the
                        contract.
    ``(f) Duties of Owners and Operators.--Under a contract entered
into under subsection (e), during the term of the contract, an owner or
operator of a farm or ranch shall agree--
            ``(1) to implement the applicable resource security plan or
        livestock nutrient management plan approved by the Secretary;
            ``(2) to keep such records as the Secretary may require for
        purposes of evaluation of the implementation of the plan;
            ``(3) not to engage in any activity that would defeat the
        purposes of the conservation security program; and
            ``(4) to forgo incentive payments, rental payments, or
        easement payments under any other conservation program
        administered by the Secretary for land subject to the contract,
        except that the owner or operator shall not otherwise become
        ineligible for participation in and receipt of cost-share
        payments under any other conservation program as a result of
        payments received under this section.
    ``(g) Duties of Secretary.--
            ``(1) Resource security plans.--
                    ``(A) In general.--Under a contract entered into by
                an owner or operator under this section to carry out a
                resource security plan, subject to subparagraph (B),
                the Secretary shall, for a period of years not in
                excess of the term of the contract, make an annual
                rental payment to the owner or operator in an amount
                equal to--
                            ``(i) 10 percent of the average county
                        rental rate for the same type of land enrolled
                        under the contract that will be maintained
                        using Class I conservation practices described
                        in subsection (d)(3)(A);
                            ``(ii) 20 percent of the average county
                        rental rate for the same type of land enrolled
                        under the contract that will be maintained
                        using Class II conservation practices described
                        in subsection (d)(3)(B); and
                            ``(iii) 40 percent of the average county
                        rental rate for the same type of land enrolled
                        under the contract that will be maintained
                        using Class III conservation practices
                        described in subsection (d)(3)(C).
            ``(2) Livestock nutrient management plans.--Under a
        contract entered into by an owner or operator under this
        section to carry out a livestock nutrient management plan, the
        Secretary shall, for a period of years not in excess of the
        term of the contract, make an annual rental payment to the
        owner or operator in an amount equal to the product obtained by
        multiplying--
                    ``(A) 10 percent of the simple average price
                received by owners and operators for each type of
                livestock covered by the plan during the 5 marketing
                years immediately preceding the year covered by the
                annual payment; by
                    ``(B) the number of that type of livestock raised
                by the owner or operator during the year covered by the
                annual payment.
                    ``(3) Limitation on payments.--The total amount of
                payments paid to an owner or operator under paragraphs
                (1) and (2) shall not exceed $50,000 for any fiscal
                year.
            ``(4) Technical assistance.--The Secretary shall use not
        less than 15 percent, nor more than 20 percent, of the funds
        that are made available to carry out this section for a fiscal
        year to provide technical assistance to owners and operators
        entering into contracts under this section.
            ``(5) Other payments.--Except as otherwise provided in this
        section, payments received by an owner or operator under this
        subsection shall be in addition to, and not affect, the total
        amount of payments that the owner or operator is otherwise
        eligible to receive under--
                    ``(A) this Act;
                    ``(B) the Federal Agriculture Improvement and
                Reform Act of 1996 (Public Law 104-127), including the
                Agricultural Market Transition Act (7 U.S.C. 7201 et
                seq.);
                    ``(C) the Food, Agriculture, Conservation, and
                Trade Act of 1990 (Public Law 101-624); or
                    ``(D) the Agricultural Act of 1949 (7 U.S.C. 1421
                et seq.).''.

SEC. 3. EFFECTIVE DATE.

    (a) In General.--This Act and the amendment made by this Act take
effect on October 1, 1999.
    (b) Regulations.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall promulgate such regulations
as are necessary to carry out this Act and the amendment made by this
Act.

Summary: Requires a participant to submit a resource security plan or a livestock nutrient management plan. Sets forth three classes of resource security plan conservation practices, and bases rental payments upon classes implemented by the participant. Bases livestock nutrient management plan payments on the price and number of livestock covered by the contract.

Conservation Security Act of 1999


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Union Integrity Act''.

SEC. 2. WHISTLEBLOWER PROTECTION FOR UNION EMPLOYEES.

    The Labor-Management Reporting and Disclosure Act of 1959 (29
U.S.C. 401 et seq.) is amended--
            (1) by redesignating section 611 (29 U.S.C. 531) as section
        612; and
            (2) by inserting after section 610 (29 U.S.C. 530), the
        following new section:

             ``whistleblower protection for union employees

    ``Sec. 611.  (a) In General.--No labor organization shall terminate
or in any other way discriminate against, or cause to be terminated or
discriminated against, any covered employee of the labor organization
by reason of the fact that such employee, whether at the initiative of
the employee or in the ordinary course of the duties of the employee
(or any person acting pursuant to a request of the employee), has--
            ``(1) provided, caused to be provided, or is about to
        provide or cause to be provided, information to the labor
        organization, the Department of Labor, or any other State,
        local, or Federal government authority or law enforcement
        agency relating to any violation of, or any act or omission
        that the employee reasonably believes to be a violation of, any
        provision of this Act or any other provision of law that is
        subject to the jurisdiction of the Department of Labor, the
        National Labor Relations Board, or any rule, order, standard,
        or prohibition prescribed by the Department of Labor or the
        National Labor Relations Board;
            ``(2) testified or will testify in any proceeding resulting
        from the administration or enforcement of any provision of this
        Act or any other provision of law that is subject to the
        jurisdiction of the Department of Labor or National Labor
        Relations Board, or any rule, order, standard, or prohibition
        prescribed by the Department of Labor or the National Labor
        Relations Board;
            ``(3) filed, instituted, or caused to be filed or
        instituted any proceeding under this Act; or
            ``(4) objected to, or refused to participate in, any
        activity, policy, practice, or assigned task that the employee
        (or other such person) reasonably believed to be in violation
        of any law, rule, order, standard, or prohibition, subject to
        the jurisdiction of, or enforceable by, the Department of Labor
        or the National Labor Relations Board.
    ``(b) Definition of Covered Employee.--For the purposes of this
section, the term `covered employee' means any employee of a labor
organization who receives financial compensation for his or her
services to the labor organization, including officers of the labor
organization.
    ``(c) Procedures and Timetables.--
            ``(1) Complaint.--
                    ``(A) In general.--A person who believes that he or
                she has been discharged or otherwise discriminated
                against by any person in violation of subsection (a)
                may file (or have any person file on his or her behalf)
                a complaint with the Secretary of Labor alleging such
                discharge or discrimination and identifying the person
                responsible for such act. Such a complaint must be
                filed not later than either--
                            ``(i) 180 days after the date on which such
                        alleged violation occurs; or
                            ``(ii) 180 days after the conclusion of any
                        internal appeals, review, or other judicial or
                        investigative process conducted by the labor
                        organization employing such person.
                    ``(B) Actions of secretary of labor.--Upon receipt
                of such a complaint, the Secretary of Labor shall
                notify, in writing, the person named in the complaint
                who is alleged to have committed the violation, of--
                            ``(i) the filing of the complaint;
                            ``(ii) the allegations contained in the
                        complaint;
                            ``(iii) the substance of evidence
                        supporting the complaint; and
                            ``(iv) opportunities that will be afforded
                        to such person under paragraph (2).
            ``(2) Investigation by secretary of labor.--
                    ``(A) In general.--Not later than 60 days after the
                date of receipt of a complaint filed under paragraph
                (1), and after affording the complainant and the person
                named in the complaint who is alleged to have committed
                the violation that is the basis for the complaint an
                opportunity to submit to the Secretary of Labor a
                written response to the complaint and an opportunity to
                meet with a representative of the Secretary of Labor to
                present statements from witnesses, the Secretary of
                Labor shall--
                            ``(i) initiate an investigation and
                        determine whether there is reasonable cause to
                        believe that the complaint has merit; and
                            ``(ii) notify the complainant and the
                        person alleged to have committed the violation
                        of subsection (a), in writing, of such
                        determination.
                    ``(B) Notice of relief available.--If the Secretary
                of Labor concludes that there is reasonable cause to
                believe that a violation of subsection (a) has
                occurred, the Secretary of Labor shall, together with
                the notice under subparagraph (A)(ii), issue a
                preliminary order providing the relief prescribed by
                paragraph (4)(B).
                    ``(C) Request for hearing.--Not later than 30 days
                after the date of receipt of notification of a
                determination of the Secretary of Labor under this
                paragraph, either the person alleged to have committed
                the violation or the complainant may file objections to
                the findings or preliminary order, or both, and request
                a hearing on the record. The filing of such objections
                shall not operate to stay any reinstatement remedy
                contained in the preliminary order. Any such hearing
                shall be conducted expeditiously, and if a hearing is
                not requested in such 30-day period, the preliminary
                order shall be deemed a final order that is not subject
                to judicial review.
            ``(3) Grounds for determination of complaints.--
                    ``(A) In general.--The Secretary of Labor shall
                dismiss a complaint filed under this subsection, and
                shall not conduct an investigation otherwise required
                under paragraph (2), unless the complainant makes a
                prima facie showing that any behavior described in
                paragraphs (1) through (4) of subsection (a) was a
                contributing factor in the unfavorable personnel action
                alleged in the complaint.
                    ``(B) Rebuttal evidence.--Notwithstanding a finding
                by the Secretary of Labor that the complainant has made
                the showing required under subparagraph (A), no
                investigation otherwise required under paragraph (2)
                shall be conducted, if the labor organization
                demonstrates, by clear and convincing evidence, that
                the labor organization would have taken the same
                unfavorable personnel action in the absence of that
                behavior.
                    ``(C) Evidentiary standards.--The Secretary of
                Labor may determine that a violation of subsection (a)
                has occurred only if the complainant demonstrates that
                any behavior described in paragraphs (1) through (4) of
                subsection (a) was a contributing factor in the
                unfavorable personnel action alleged in the complaint.
                Relief may not be ordered under subparagraph (A) if the
                labor organization demonstrates by clear and convincing
                evidence that the labor organization would have taken
                the same unfavorable personnel action in the absence of
                that behavior.
            ``(4) Issuance of final orders; review procedures.--
                    ``(A) Timing.--Not later than 120 days after the
                date of conclusion of any hearing under paragraph (2),
                the Secretary of Labor shall issue a final order
                providing the relief prescribed by this paragraph or
                denying the complaint. At any time before issuance of a
                final order, a proceeding under this subsection may be
                terminated on the basis of a settlement agreement
                entered into by the Secretary of Labor, the
                complainant, and the person alleged to have committed
                the violation.
                    ``(B) Penalties.--
                            ``(i) Order of secretary of labor.--If, in
                        response to a complaint filed under paragraph
                        (1), the Secretary of Labor determines that a
                        violation of subsection (a) has occurred, the
                        Secretary of Labor shall order the person who
                        committed such violation--
                                    ``(I) to take affirmative action to
                                abate the violation;
                                    ``(II) to reinstate the complainant
                                to his or her former position, together
                                with compensation (including back pay)
                                and restore the terms, conditions, and
                                privileges associated with his or her
                                employment; and
                                    ``(III) to provide compensatory
                                damages to the complainant.
                            ``(ii) Penalty.--If an order is issued
                        under clause (i), the Secretary of Labor, at
                        the request of the complainant, shall assess
                        against the person against whom the order is
                        issued, a sum equal to the aggregate amount of
                        all costs and expenses (including attorney fees
                        and expert witness fees) reasonably incurred,
                        as determined by the Secretary of Labor, by the
                        complainant for, or in connection with, the
                        bringing of the complaint upon which the order
                        was issued.
                    ``(C) Penalty for frivolous claims.--If the
                Secretary of Labor finds that a complaint under
                paragraph (1) is frivolous or has been brought in bad
                faith, the Secretary of Labor may award to the
                prevailing labor organization a reasonable attorney
                fee, not exceeding $1,000, to be paid by the
                complainant.
                    ``(D) De novo review.--
                            ``(i) Failure of the secretary to act.--If
                        the Secretary of Labor has not issued a final
                        order within 210 days after the date of filing
                        of a complaint under this subsection, or within
                        90 days after the date of receipt of a written
                        determination, the complainant may bring an
                        action at law or equity for de novo review in
                        the appropriate district court of the United
                        States having jurisdiction, which shall have
                        jurisdiction over such an action without regard
                        to the amount in controversy, and which action
                        shall, at the request of either party to such
                        action, be tried by the court with a jury.
                            ``(ii) Procedures.--A proceeding under
                        clause (i) shall be governed by the same legal
                        burdens of proof specified in paragraph (3).
                        The court shall have jurisdiction to grant all
                        relief necessary to make the employee whole,
                        including injunctive relief and compensatory
                        damages, including--
                                    ``(I) reinstatement with the same
                                seniority status that the employee
                                would have had, but for the discharge
                                or discrimination;
                                    ``(II) the amount of back pay, with
                                interest; and
                                    ``(III) compensation for any
                                special damages sustained as a result
                                of the discharge or discrimination,
                                including litigation costs, expert
                                witness fees, and reasonable attorney
                                fees.
                    ``(E) Other appeals.--Unless the complainant brings
                an action under subparagraph (D), any person adversely
                affected or aggrieved by a final order issued under
                subparagraph (A) may file a petition for review of the
                order in the United States Court of Appeals for the
                circuit in which the violation with respect to which
                the order was issued, allegedly occurred or the circuit
                in which the complainant resided on the date of such
                violation, not later than 60 days after the date of the
                issuance of the final order of the Secretary of Labor
                under subparagraph (A). Review shall conform to chapter
                7 of title 5, United States Code. The commencement of
                proceedings under this subparagraph shall not, unless
                ordered by the court, operate as a stay of the order.
                An order of the Secretary of Labor with respect to
                which review could have been obtained under this
                subparagraph shall not be subject to judicial review in
                any criminal or other civil proceeding.
            ``(5) Failure to comply with order.--
                    ``(A) Actions by the secretary.--If any person has
                failed to comply with a final order issued under
                paragraph (4), the Secretary of Labor may file a civil
                action in the United States district court for the
                district in which the violation was found to have
                occurred, or in the United States district court for
                the District of Columbia, to enforce such order. In
                actions brought under this paragraph, the district
                courts shall have jurisdiction to grant all appropriate
                relief including injunctive relief and compensatory
                damages.
                    ``(B) Civil actions to compel compliance.--A person
                on whose behalf an order was issued under paragraph (4)
                may commence a civil action against the person to whom
                such order was issued to require compliance with such
                order. The appropriate United States district court
                shall have jurisdiction, without regard to the amount
                in controversy or the citizenship of the parties, to
                enforce such order.
                    ``(C) Award of costs authorized.--The court, in
                issuing any final order under this paragraph, may award
                costs of litigation (including reasonable attorney and
                expert witness fees) to any party, whenever the court
                determines such award is appropriate.
                    ``(D) Mandamus proceedings.--Any nondiscretionary
                duty imposed by this section shall be enforceable in a
                mandamus proceeding brought under section 1361 of title
                28, United States Code.
    ``(d) Limitation of Preemption.--Nothing in this Act shall be
construed--
            ``(1) to limit the ability of members of a labor
        organization to remove their elected or appointed officials
        through a democratic election conducted among such members; or
            ``(2) to preempt a State or local government from providing
        additional protections to employees of labor organizations who
        allege violations of subsection (a), provided that such
        protections do not limit the ability of members of a labor
        organization to remove their elected or appointed officials
        through a democratic ballot.
    ``(e) Unenforceability of Certain Agreements.--
            ``(1) No waiver of rights and remedies.--Notwithstanding
        any other provision of law, the rights and remedies provided
        for in this section may not be waived by any agreement, policy,
        form, or condition of employment, including by any predispute
        arbitration agreement.
            ``(2) No predispute arbitration agreements.--
        Notwithstanding any other provision of law, no predispute
        arbitration agreement shall be valid or enforceable to the
        extent that it requires arbitration of a dispute arising under
        this section.''.

Summary: Union Integrity Act Amends the Labor-Management Reporting and Disclosure Act of 1959 to prescribe whistleblower protections that prohibit a labor organization from discriminating against any of its employees who has: (1) provided information to the labor organization, the Department of Labor, or any other state, local, or federal government authority or law enforcement agency regarding any violation of the Act or any Department or National Labor Relations Board (NLRB) order. (2) testified in any Department or NLRB administrative or enforcement proceeding, (3) filed or instituted any such proceeding. Or (4) refused to perform an assigned task that the employee reasonably believed to be in violation of any law, order, or prohibition enforced by the Department or the NLRB. Prescribes procedures for filing and processing complaints for violations of this Act. Declares that nothing in this Act shall be construed to: (1) limit employees to remove elected or appointed union officials through a democratic election. Or (2) preempt a state or local government from providing additional protections to such employees who allege a violation, provided such protections do not limit the ability of those employees to remove such officials through a democratic ballot.

Union Integrity Act


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Presidential Transition Act of
2000''.

SEC. 2. AMENDMENTS TO PRESIDENTIAL TRANSITION ACT OF 1963.

    Section 3(a) of the Presidential Transition Act of 1963 (3 U.S.C.
102 note) is amended--
            (1) in the matter preceding paragraph (1) by striking
        ``including--'' and inserting ``including the following:'';
            (2) in each of paragraphs (1) through (6) by striking the
        semicolon at the end and inserting a period; and
            (3) by adding at the end the following:
            ``(8)(A)(i) Payment of expenses during the transition for
        briefings, workshops, or other activities to acquaint key
        prospective Presidential appointees with the types of problems
        and challenges that most typically confront new political
        appointees when they make the transition from campaign and
        other prior activities to assuming the responsibility for
        governance after inauguration.
            ``(ii) Activities under this paragraph may include
        interchange between such appointees and individuals who--
                    ``(I) held similar leadership roles in prior
                administrations;
                    ``(II) are department or agency experts from the
                Office of Management and Budget or an Office of
                Inspector General of a department or agency; or
                    ``(III) are relevant staff from the General
                Accounting Office.
            ``(iii) Activities under this paragraph may include
        training in records management to comply with section 2203 of
        title 44, United States Code, including training on the
        separation of Presidential records and personal records to
        comply with subsection (b) of that section.
            ``(iv) Activities under this paragraph may include training
        in human resources management and performance-based management.
            ``(B) Activities under this paragraph shall be conducted
        primarily for individuals the President-elect intends to
        nominate as department heads or appoint to key positions in the
        Executive Office of the President.
            ``(9)(A) Development of a transition directory by the
        Administrator for activities conducted under paragraph (8).
            ``(B) The transition directory shall be a compilation of
        Federal publications and materials with supplementary materials
        developed by the Administrator that provides information on the
        officers, organization, and statutory and administrative
        authorities, functions, duties, responsibilities, and mission
        of each department and agency.
            ``(10)(A) Notwithstanding subsection (b), consultation by
        the Administrator with any candidate for President or Vice
        President to develop a systems architecture plan for the
        computer and communications systems of the candidate to
        coordinate a transition to Federal systems, if the candidate is
        elected.
            ``(B) Consultations under this paragraph shall be conducted
        at the discretion of the Administrator.''.

SEC. 3. REPORT ON IMPROVING THE FINANCIAL DISCLOSURE PROCESS FOR
              PRESIDENTIAL NOMINEES.

    (a) In General.--Not later than 6 months after the date of
enactment of this Act, the Office of Government Ethics shall conduct a
study and submit a report on improvements to the financial disclosure
process for Presidential nominees required to file reports under
section 101(b) of the Ethics in Government Act of 1978 (5 U.S.C. App.)
to the Committee on Governmental Affairs of the Senate and the
Committee on Government Reform of the House of Representatives.
    (b) Content of Report.--
            (1) In general.--The report under this section shall
        include recommendations and legislative proposals on--
                    (A) streamlining, standardizing, and coordinating
                the financial disclosure process and the requirements
                of financial disclosure reports under the Ethics in
                Government Act of 1978 (5 U.S.C. App.) for Presidential
                nominees;
                    (B) avoiding duplication of effort and reducing the
                burden of filing with respect to financial disclosure
                of information to the White House Office, the Office of
                Government Ethics, and the Senate; and
                    (C) any other relevant matter the Office of
                Government Ethics determines appropriate.
            (2) Limitation relating to conflicts of interest.--The
        recommendations and proposals under this subsection shall not
        (if implemented) have the effect of lessening substantive
        compliance with any conflict of interest requirement.
    (c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out this section.

Summary: States that such activities may include interchange between such appointees and individuals who: (1) held similar leadership roles in prior administrations. (2) are department or agency experts from the Office of Management and Budget or a department or agency Office of Inspector General. Or (3) are relevant staff from the General Accounting Office. Permits such activities also to include training in: (1) records management, including training on the separation of Presidential records and personal records to comply with certain requirements. And (2) human resources management and performance-based management. Requires the Administrator to develop a transition directory for such activities, which compile Federal publications and materials with supplementary materials developed by the Administrator that provide information on the officers, organization, and statutory and administrative authorities, functions, duties, responsibilities, and mission of each department and agency. Requires the Administrator also to consult with any candidate for President or Vice President to develop a systems architecture plan for the candidate's computer and communications systems to coordinate a transition to Federal systems, if the candidate is elected. Directs the Office of Government Ethics to study and report to specified congressional committees on improvements to the mandatory financial disclosure process under the Ethics in Government Act of 1978 for presidential nominees. Authorizes appropriations.

Presidential Transition Act of 2000


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safe, Efficient, Coordinated,
Unified, Revitalized, Enhanced Visa Waiver Act''.

SEC. 2. ELECTRONIC SUBMISSION OF BIOGRAPHICAL INFORMATION BY VISA
              WAIVER PARTICIPANTS.

    (a) In General.--The Secretary of Homeland Security shall
establish, as part of the integrated entry and exit data system
required under section 110 of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1365a), an electronic
system through which an alien seeking to enter the United States
without a visa under the visa waiver program described in section 217
of the Immigration and Nationality Act (8 U.S.C. 1187) is required to
submit biographical information prior to embarkation.
    (b) Elements.--The electronic system required to be established
under subsection (a) shall satisfy the following requirements:
            (1) Electronic determination of eligibility.--The system
        shall include a method for an electronic determination to be
        made, and an electronic response to be provided, in 30 minutes
        or less, as to whether or not an alien submitting information
        as described in subsection (a) is eligible to be admitted to
        the United States as a nonimmigrant visitor described in
        section 101(a)(15)(B) of the Immigration and Nationality Act (8
        U.S.C. 1101(a)(15)(B)).
            (2) Carrier obligations.--The system shall include a method
        for requiring--
                    (A) carriers and other corporations described in
                section 217(a)(5) of such Act (8 U.S.C. 1187(a)(5)) to
                inquire electronically, prior to an alien passenger's
                embarkation without a visa, whether the alien has been
                determined, using the system described in this section,
                to be eligible for such an admission; and
                    (B) the electronic response to such inquiry to be
                provided in 90 seconds or less.
            (3) Deployment.--The system shall be deployed as soon as
        possible after the date of the enactment of this Act.
            (4) Fee.--The Secretary of Homeland Security shall
        establish a fee to be charged to aliens described in subsection
        (a) that is set at a level that will ensure the recovery of the
        full costs of establishing and operating the system.
    (c) Consultation.--In developing the system, the Secretary of
Homeland Security shall consult with, and allow for the system's review
by, a private sector group consisting of individuals with expertise in
travel, tourism, privacy, national security, or computer security
issues.

SEC. 3. CHANGE TO REQUIREMENT FOR READERS AND SCANNERS AT PORTS OF
              ENTRY.

    Section 303(b)(2)(A) of the Enhanced Border Security and Visa Entry
Reform Act (8 U.S.C. 1732(b)(2)(A)) is amended to read as follows:
                    ``(A) In general.--Not later than October 26, 2004,
                the Secretary of Homeland Security, in consultation
                with the Secretary of State, shall install at all ports
                of entry into the United States equipment and software
                to allow biometric comparison and authentication of all
                United States visas and other travel and entry
                documents issued to aliens. Not later than October 26,
                2005, the Secretary of Homeland Security, in
                consultation with the Secretary of State, shall install
                at all ports of entry into the United States equipment
                and software to allow biometric comparison and
                authentication of passports issued pursuant to
                subsection (c)(1).''.

SEC. 4. TECHNOLOGY STANDARD IMPLEMENTATION DEADLINE.

    Section 303(c) of the Enhanced Border Security and Visa Entry
Reform Act (8 U.S.C. 1732(c)) is amended, in each of paragraphs (1) and
(2), by striking ``2004,'' and inserting ``2005,''.

SEC. 5. LIMITED GOOD FAITH WAIVER.

    Section 303(c) of the Enhanced Border Security and Visa Entry
Reform Act (8 U.S.C. 1732(c)) is amended by adding at the end the
following:
            ``(3) Limited good faith waiver.--
                    ``(A) In general.--The Secretary of Homeland
                Security, in consultation with the Secretary of State,
                may grant not more than 2 extensions for a country, and
                its nationals, of the deadlines in paragraphs (1) and
                (2), respectively, upon a determination that the
                country is making substantial progress towards ensuring
                that the passports the country issues to its nationals
                satisfy the requirements of paragraph (1). Each such
                extension shall be for a period not exceeding 6 months.
                    ``(B) Factors.--In determining whether a country is
                making substantial progress under subparagraph (A), the
                Secretary of Homeland Security shall take into account
                the following factors, which shall be certified by the
                Secretary of State:
                            ``(i) Whether the country has made a good
                        faith effort to satisfy the requirements of
                        paragraph (1) not later than October 26, 2005.
                            ``(ii) Whether the country has a program
                        designed to satisfy the requirements of
                        paragraph (1) not later than October 26, 2006.
                            ``(iii) Whether the country has commenced a
                        pilot program under which some number of
                        passports that satisfy the requirements of
                        paragraph (1) will be issued before March 26,
                        2006.
            ``(4) Reports.--
                    ``(A) Initial.--Not later than October 26, 2005,
                the Secretary of Homeland Security, in consultation
                with the Secretary of State, shall issue an initial
                report on the status of countries' progress in meeting
                the requirements of paragraph (1).
                    ``(B) Final.--Not later than April 25, 2006, the
                Secretary of Homeland Security, in consultation with
                the Secretary of State, shall issue a final report on
                the status of countries' progress in meeting the
                requirements of paragraph (1).''.

SEC. 6. TECHNICAL AND CONFORMING AMENDMENTS.

    Section 303 of the Enhanced Border Security and Visa Entry Reform
Act (8 U.S.C. 1732) is amended by striking ``Attorney General'' each
place that term appears and inserting ``Secretary of Homeland
Security''.

Summary: Safe, Efficient, Coordinated, Unified, Revitalized, Enhanced Visa Waiver Act - Directs the Secretary of Homeland Security to establish an electronic system that requires aliens seeking entry to the United States under the visa waiver program (VWP) to submit biographical information prior to embarkation. Requires such system to: (1) make electronic determinations of eligibility for admission within 30 minutes. (2) require carriers and other corporations providing transportation to inquire electronically, prior to embarkation, whether the alien has been determined eligible for admission and to respond to such inquiries within 90 seconds. And (3) be deployed as soon as possible. Requires the Secretary: (1) to charge a fee to VWP aliens that ensures the recovery of the full costs of establishing and operating the system. And (2) in developing the system, to consult with and allow for review by a private sector group consisting of experts in travel, tourism, privacy, national security, or computer security issues. Amends the Enhanced Border Security and Visa Entry Reform Act to extend by one year: (1) the deadline for installing equipment and software at US ports of entry to allow biometric comparison and authentication of machine-readable passports issued by VWP countries. And (2) the deadline for VWP aliens to present such passports. Authorizes the Secretary to grant up to two extensions of the new deadlines where the VWP country is making substantial progress toward issuing machine-readable, tamper-resistant passports that incorporate biometric and document authentication identifiers.

To secure the visa waiver program under section 217 of the Immigration and Nationality Act, and for other purposes.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Spending Control Act of 2004''.

SEC. 2. EXTENSION OF DISCRETIONARY SPENDING LIMITS.

    (a) Discretionary Spending Limits.--(1) Section 251(c)(2) of the
Balanced Budget and Emergency Deficit Control Act of 1985 is amended by
inserting a dash after ``2005'', by redesignating the remaining portion
of such paragraph as subparagraph (B) and by moving it two ems to the
right, and by inserting after the dash the following new subparagraph:
                    ``(A) for the general purpose discretionary
                category: $____ in new budget authority and $____ in
                outlays; and''.
    (2) Section 251(c)(3) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by inserting a dash after ``2006'', by
redesignating the remaining portion of such paragraph as subparagraph
(B) and by moving it two ems to the right, and by inserting after the
dash the following new subparagraph:
                    ``(A) for the general purpose discretionary
                category: $____ in new budget authority and $____ in
                outlays; and''.
    (3) Section 251(c) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by redesignating paragraphs (4) through
(9) as paragraphs (7) through (12) and inserting after paragraph (3)
the following new paragraphs:
            ``(4) with respect to fiscal year 2007 for the general
        purpose discretionary category: $____ in new budget authority
        and $____ in outlays;
            ``(5) with respect to fiscal year 2008 for the general
        purpose discretionary category: $____ in new budget authority
        and $____ in outlays; and
            ``(6) with respect to fiscal year 2009 for the general
        purpose discretionary category: $____ in new budget authority
        and $____ in outlays;''.
    (b) Advance Appropriations.--Section 251 of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by adding at the end
the following new subsection:
    ``(d) Advance Appropriations.--In any of fiscal years 2005 through
2009, discretionary advance appropriations provided in appropriation
Acts in excess of $____ shall be counted against the discretionary
spending limits for the fiscal year for which the appropriation Act
containing the advance appropriation is enacted.''.

SEC. 3. EXTENSION OF PAY-AS-YOU-GO REQUIREMENT.

    (a) Purpose.--Section 252(a) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended to read as follows:
    ``(a) Purpose.--The purpose of this section is to assure that any
legislation that is enacted before October 1, 2009, that causes a net
increase in direct spending will trigger an offsetting
sequestration.''.
    (b) Timing.--Section 252(b)(1) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking ``any net deficit
increase'' and all that follows through ``2002,'' and by inserting
``any net increase in direct spending enacted before October 1,
2009,''.
    (c) Calculation of Direct Spending Increase.--Section 252(b)(2) of
the Balanced Budget and Emergency Deficit Control Act of 1985 is
amended--
            (1) by striking ``deficit'' the first place it appears and
        inserting ``direct spending'';
            (2) in subparagraph (A) by striking ``and receipts'';
            (3) in subparagraph (C) by striking ``and receipts''; and
            (4) by amending the heading to read as follows:
        ``Calculation of direct spending increase.--''.
    (d) Conforming Amendments.--(1) The heading of section 252(c) of
the Balanced Budget and Emergency Deficit Control Act of 1985 is
amended to read as follows: ``Eliminating a Direct Spending Increase.--
''.
    (2) Paragraphs (1), (2), and (4) of section 252(d) of the Balanced
Budget and Emergency Deficit Control Act of 1985 are amended by
striking ``or receipts'' each place it appears.
    (3) Section 252(e) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by striking ``or receipts'' and by
striking ``, outlays, and receipts'' and inserting ``and outlays''.
    (4) Section 254(c)(3) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended--
            (A) in subparagraph (A) by striking ``net deficit increase
        or decrease'' and by inserting ``net increase or decrease in
        direct spending'';
            (B) in subparagraph (B) by striking ``amount of deficit
        increase or decrease'' and by inserting ``increase or decrease
        in direct spending''; and
            (C) in subparagraph (C) by striking ``a deficit increase''
        and by inserting ``an increase in direct spending''.

SEC. 4. DEFINITIONS.

    (a) In General.--Section 250(c) of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by adding at the end
the following new paragraphs:
            ``(20) The term `advance appropriation' means
        appropriations that first become available one fiscal year or
        more beyond the fiscal year for which an appropriation Act
        making such funds available is enacted.
            ``(21)(A) Except as provided by subparagraph (B), the term
        `emergency requirement' means any provision that provides new
        budget authority and resulting outlays for a situation that
        poses a threat to life, property, or national security and is--
                    ``(i) sudden, quickly coming into being, and not
                building up over time;
                    ``(ii) an urgent, pressing, and compelling need
                requiring immediate action;
                    ``(iii) subject to subparagraph (B), unforeseen,
                unpredictable, and unanticipated; and
                    ``(iv) not permanent, temporary in nature.
            ``(B) An emergency that is part of an aggregate level of
        anticipated emergencies, particularly when normally estimated
        in advance, is not unforeseen.''.
    (b) Contingency Operations Related to Global War on Terrorism.--
Section 251(b)(2) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended by adding at the end the following new
subparagraph:
                    ``(I) Contingency operations related to global war
                on terrorism.--If supplemental appropriations for
                discretionary accounts are enacted for contingency
                operations related to the global war on terrorism that,
                pursuant to this subparagraph, the President designates
                as a contingency operation related to the global war on
                terrorism and the Congress so designates in statute,
                the adjustment shall be the total of such
                appropriations in discretionary accounts so designated
                and the outlays flowing in all fiscal years from such
                appropriations.''.
    (c) Conforming Amendment.--The second sentence of section
250(c)(4)(A) of the Balanced Budget and Emergency Deficit Control Act
of 1985 is amended to read as follows: ``The general purpose
discretionary category shall consist of accounts designated in the
joint explanatory statement of managers accompanying the conference
report on the Spending Control Act of 2004.''.

SEC. 5. PROJECTIONS UNDER SECTION 257.

    Section 257(c) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended by inserting after paragraph (6) the following
new paragraph:
            ``(7) Emergencies.--New budgetary resources designated
        under section 251(b)(2)(A) or 251(b)(2)(I) shall not be assumed
        beyond the fiscal year for which they have been enacted.''.

SEC. 6. EXCEPTION FOR OUTLAY COMPONENTS OF EXPIRING RECEIPTS
              LEGISLATION.

    Section 252(d)(4) of the Balanced Budget and Emergency Deficit
Control Act of 1985 is amended by striking ``and'' at the end of
subparagraph (A), by striking the period and inserting ``; and'' at the
end of subparagraph (B), and by adding at the end the following new
subparagraph:
                    ``(C) extending provisions in the Economic Growth
                and Tax Relief Reconciliation Act of 2001 or provisions
                in sections 101 through 104, section 202, or sections
                301 and 302 of the Jobs and Growth Tax Relief
                Reconciliation Act of 2003.''.

SEC. 7. REPORTS.

    Subsections (c)(2) and (f)(2)(A) of section 254 of the Balanced
Budget and Emergency Deficit Control Act of 1985 are amended by
striking ``2002'' and inserting ``2009''.

SEC. 8. EXPIRATION.

    Section 275(b) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended by striking ``2002'' and inserting ``2009'' and
by striking ``2006'' and inserting ``2013''.

SEC. 9. TECHNICAL CORRECTIONS TO THE BALANCED BUDGET AND EMERGENCY
              DEFICIT CONTROL ACT OF 1985.

    Part C of the Balanced Budget and Emergency Deficit Control Act of
1985 is amended as follows:
            (1) In section 250(a), strike ``SEC. 256. GENERAL AND
        SPECIAL SEQUESTRATION RULES'' and insert ``Sec. 256. General
        and special sequestration rules'' in the item relating to
        section 256.
            (2) In subparagraphs (F), (G), (H), (I), (J), and (K) of
        section 250(c)(4), insert ``subparagraph'' after ``described
        in'' each place it appears.
            (3) In section 250(c)(18), insert ``of'' after
        ``expenses''.
            (4) In section 251(b)(1)(A), strike ``committees'' the
        first place it appears and insert ``Committees''.
            (5) In section 251(b)(1)(C)(i), strike ``fiscal years'' and
        insert ``fiscal year''.
            (6) In section 251(b)(1)(D)(ii), strike ``fiscal years''
        and insert ``fiscal year''.
            (7) In section 252(b)(2)(B), insert ``the'' before ``budget
        year''.
            (8) In section 252(c)(1)(C)(i), strike ``paragraph (1)''
        and insert ``subsection (b)''.
            (9) In section 254(c)(3)(A), strike ``subsection'' and
        insert ``section''.
            (10) In section 254(f)(4), strike ``subsection'' and insert
        ``section'' and strike ``sequesterable'' and insert
        ``sequestrable''.
            (11) In section 255(g)(1)(B), move the fourteenth
        undesignated clause 2 ems to the right.
            (12) In section 255(g)(2), insert ``and'' after the
        semicolon at the end of the next-to-last undesignated clause.
            (13) In section 255(h)--
                    (A) strike ``and'' after the semicolon in the ninth
                undesignated clause;
                    (B) insert ``and'' after the semicolon at the end
                of the tenth undesignated clause; and
                    (C) strike the semicolon at the end and insert a
                period.
            (14) In section 256(k)(1), strike ``paragraph (5)'' and
        insert ``paragraph (6)''.
            (15) In section 257(b)(2)(A)(i), strike ``differenes'' and
        insert ``differences''.

Summary: Spending Control Act of 2004 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 to establish for FY 2005 through 2009 unspecified discretionary spending limits for the general purpose discretionary category in new budget authority and outlays. Provides that, in any of such fiscal years, discretionary advance appropriations provided in appropriation Acts in excess of an unspecified amount shall be counted against the discretionary spending limits for the fiscal year for which the appropriation Act containing the advance appropriation is enacted. Extends PAY-AS-YOU-GO requirements through FY 2009 to provide for an offsetting sequestration for direct spending legislation that is enacted before October 1, 2009, that causes a net increase in direct spending . Modifies the formula used to calculate the amount of direct spending increase to exclude receipts. Provides that, if supplemental appropriations for discretionary accounts are enacted for contingency operations related to the global war on terrorism that the President designates and Congress so designates in statute, the adjustment shall be the total of such appropriations in discretionary accounts so designated and the outlays flowing in all fiscal years from them. States that the general purpose discretionary category shall consist of accounts designated in the joint explanatory statement of managers accompanying the conference report on this Act. Makes revisions to the baseline calculation for discretionary appropriations to prohibit the assumption beyond the fiscal year for which they have been enacted of any new budget resources designated by the President and by Congress in statute for emergency appropriations or for supplemental appropriations for contingency operations related to global war on terrorism. Requires the Office of Management and Budget (OMB) cost estimates on direct spending or receipts legislation to exclude any amount resulting from extending provisions in the Economic Growth and Tax Relief Reconciliation Act of 2001 or in the Growth Tax Relief Reconciliation Act of 2003 relating to certain individual tax rate reductions, tax benefits to children, and marriage penalty relief. Requires the estimates set forth in the discretionary sequestration preview reports and such final reports issued by OMB and the Congressional Budget Office to include the current year and each subsequent year through FY 2009. Extends: (1) certain budget enforcement requirements through FY 2009, and (2) PAY-AS-YOU-GO requirements through FY 2013.

To amend part C of the Balanced Budget and Emergency Deficit Control Act of 1985 to extend the discretionary spending limits and pay-as-you-go through fiscal year 2009.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Independent Contractor Clarification
Act of 1999''.

SEC. 2. DETERMINATION OF EMPLOYEE AND EMPLOYER STATUS.

    (a) In General.--Subsection (c) of section 7701 of the Internal
Revenue Code of 1986 is amended to read as follows:
    ``(c) Employee and Employer.--
            ``(1) In general.--For purposes of this title, except as
        otherwise expressly provided in this title--
                    ``(A) an individual (hereinafter in this subsection
                referred to as the `service provider') performing
                services for another person (hereinafter in this
                subsection referred to as the `service recipient')
                shall be treated as an employee of the service
                recipient, and
                    ``(B) the service recipient shall be treated as the
                employer of such service provider,
        unless the requirements of each of the subparagraphs of
        paragraph (3) have been satisfied.
            ``(2) Repeal of common law tests.--The rules of this
        subsection shall apply in lieu of any common law rules which
        would otherwise apply.
            ``(3) Requirements.--
                    ``(A) Lack of control by service recipient.--The
                requirements of this subparagraph are met only if the
                service provider has the right, to the exclusion of the
                service recipient, to control and direct the manner of,
                and the means used in, the service provider's
                performance of services for the service recipient.
                    ``(B) Availability of service to others.--The
                requirements of this subparagraph are met only if the
                service provider--
                            ``(i) makes substantially similar services
                        available to others, and
                            ``(ii) is not precluded by the service
                        recipient from soliciting business
                        opportunities that involve providing
                        substantially similar services for other
                        persons during the period that the service
                        provider is providing services for the service
                        recipient.
                    ``(C) Entrepreneurial risk.--The requirements of
                this subparagraph are met only if--
                            ``(i) in the service provider's overall
                        business activities, the service provider has
                        the potential to generate profit and bears risk
                        of loss and the extent to which profit is
                        generated or loss is sustained depends on the
                        service provider's efforts and decisions other
                        than as to the amount of work performed, and
                            ``(ii) in the event the service provider
                        fails to perform the work in accordance with
                        the service recipient's requirements, the
                        service provider is either subject to liability
                        to the service recipient for damages arising
                        from claims sounding in contract or would be
                        subject to such liability but for a waiver by
                        the service recipient.
            ``(4) Person.--For purposes of this subsection, the term
        `person' includes any governmental unit (and any agency or
        instrumentality thereof).''
    (b) Repeal of Section 530 of Revenue Act of 1978.--Section 530 of
the Revenue Act of 1978 is hereby repealed.
    (c) Conforming Amendments.--
            (1) Paragraph (2) of section 3121(d) of such Code is
        amended to read as follows:
            ``(2) any individual who is treated as an employee under
        section 7701(c); or''.
            (2) Paragraph (2) of section 210(j) of the Social Security
        Act is amended to read as follows:
            ``(2) any individual who is treated as an employee under
        section 7701(c) of the Internal Revenue Code of 1986; or''.
            (3) Subsection (a) of section 7701 of such Code is amended
        by inserting after paragraph (33) the following new paragraph:
            ``(34) Includes and including.--The terms `includes' and
        `including' when used in a definition contained in this title
        shall not be deemed to exclude other things otherwise within
        the meaning of the term defined.''
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the
        amendments made by this section shall apply to services
        performed after December 31, 2000.
            (2) Repeal of limitations on regulations and rulings.--The
        repeal made by subsection (b), insofar as it relates to section
        530(b) of the Revenue Act of 1978, shall take effect on the
        date of the enactment of this Act; except that regulations and
        Revenue Rulings permitted to be issued by reason of such repeal
        may not apply to services performed before January 1, 2001.

SEC. 3. LIMITATIONS ON RETROACTIVE EMPLOYMENT TAX RECLASSIFICATIONS.

    (a) General Rule.--Chapter 25 of the Internal Revenue Code of 1986
(relating to general provisions applicable to employment taxes) is
amended by adding at the end the following new section:

``SEC. 3511. LIMITATIONS ON RETROACTIVE EMPLOYMENT TAX
              RECLASSIFICATIONS.

    ``(a) General Rule.--If--
            ``(1) for purposes of employment taxes, the taxpayer treats
        an individual as not being an employee for any period after
        December 31, 2000, and
            ``(2) for such period, the taxpayer meets--
                    ``(A) the consistency requirements of subsection
                (b),
                    ``(B) the return filing requirements of subsection
                (c), and
                    ``(C) the safe harbor requirement of subsection
                (d),
for purposes of applying this subtitle for such period, the individual
shall be deemed not to be an employee of the taxpayer for such period.
The preceding sentence shall cease to apply to periods beginning more
than 60 days after the date that the Secretary notifies the taxpayer in
writing of a final administrative determination that the taxpayer
should treat such individual (or any individual holding a substantially
similar position) as an employee.
    ``(b) Consistency Requirements.--A taxpayer meets the consistency
requirements of this subsection with respect to any individual for any
period if the taxpayer treats such individual (and all other
individuals holding substantially similar positions) as not being an
employee for purposes of the employment taxes for such period and all
prior periods after December 31, 1978.
    ``(c) Return Filing Requirements.--The taxpayer meets the return
filing requirements of this subsection with respect to any individual
for any period if all Federal tax returns (including information
returns) required to be filed by the taxpayer for such period with
respect to such individual are filed on a basis consistent with the
taxpayer's treatment of such individual as not being an employee.
    ``(d) Safe Harbors.--
            ``(1) In general.--The taxpayer meets the safe harbor
        requirement of this subsection with respect to any individual
        for any period if the taxpayer establishes that its treatment
        of such individual as not being an employee for such period
        was--
                    ``(A) in reasonable reliance on a written
                determination (as defined in section 6110(b)(1)) issued
                to the taxpayer that addressed the employment status of
                the individual or an individual holding a substantially
                similar position with the taxpayer;
                    ``(B) in reasonable reliance on a concluded
                Internal Revenue Service audit of the taxpayer in which
                the employment status of the individual or any
                individual holding a substantially similar position
                with the taxpayer was examined and the taxpayer was
                notified in writing that no change would be made to
                such individual's employment status; or
                    ``(C) supported by substantial authority.
        For purposes of subparagraph (C), the term `substantial
        authority' has the same meaning as when used in section
        6662(d)(2)(B)(i); except that such term shall not include (i)
        any private letter ruling issued to a person other than the
        taxpayer, and (ii) any authority that does not address the
        employment status of individuals holding positions
        substantially similar to that of the individual.
            ``(2) Special rules.--
                    ``(A) Application to pre-2001 determinations,
                etc.--Paragraph (1) shall apply without regard to
                whether the determination, audit, or the authority
                referred to therein was before January 1, 2001.
                    ``(B) Subsequent authority.--The taxpayer shall not
                be considered to meet the safe harbor requirement of
paragraph (1) with respect to any individual for any period if the
treatment of such individual as not being an employee is inconsistent
with any regulation, Revenue Ruling, Revenue Procedure, or other
authority--
                            ``(i) which is published by the Secretary
                        at least 60 days before the beginning of such
                        period and after the date of the determination,
                        the conclusion of the audit, or the substantial
                        authority referred to in paragraph (1), and
                            ``(ii) which applies to the type of
                        services performed by such individual or the
                        industry or business in which such services are
                        performed.
            ``(3) Transitional rule.--Except as provided in paragraph
        (2)(B), the taxpayer shall be considered to meet the safe
        harbor requirement of paragraph (1) with respect to services
        performed by an individual during 2001 or 2002 if the taxpayer
        would be treated under section 530 of the Revenue Act of 1978
        (as in effect on the day before the date of the enactment of
        this section) as having a reasonable basis for not treating
        such individual as an employee.
    ``(e) Other Special Rules.--
            ``(1) Notice.--An officer or employee of the Internal
        Revenue Service shall, before or at the commencement of any
        audit inquiry relating to the employment status of one or more
        individuals who perform services for the taxpayer, provide the
        taxpayer with a written notice of the provisions of this
        section.
            ``(2) Availability of safe harbors.--Nothing in this
        section shall be construed to provide that this section only
        applies where the individual involved is otherwise an employee
        of the taxpayer.
    ``(f) Definitions and Special Rules.--For purposes of this
section--
            ``(1) Employment tax.--The term `employment tax' means any
        tax imposed by this subtitle.
            ``(2) Employment status.--The term `employment status'
        means the status of an individual as an employee or as an
        independent contractor (or other individual who is not an
        employee).
            ``(3) Taxpayer.--The term `taxpayer' includes any person or
        entity (including a governmental entity) which is (or would be
        but for this section) liable for any employment tax. Such term
        includes any predecessor or successor to the taxpayer.
            ``(4) Substantially similar position.--The determination as
        to whether an individual holds a position substantially similar
        to a position held by another individual shall include
        consideration of the relationship between the taxpayer and such
        individuals.
    ``(g) Regulations.--The Secretary shall prescribe such regulations
as may be appropriate to carry out the purposes of this section.''
    (b) Clerical Amendment.--The table of sections for chapter 25 of
such Code is amended by adding at the end the following new item:

                              ``Sec. 3511. Limitations on retroactive
                                        employment tax
                                        reclassifications.''
    (c) Effective Date.--The amendments made by this section shall
apply to all periods beginning after December 31, 2000.

SEC. 4. STATUTE OF LIMITATIONS ON ASSESSMENT OF EMPLOYMENT TAXES TO RUN
              BEGINNING ON DATE CERTAIN INFORMATION RETURNS FILED.

    (a) In General.--Subsection (b) of section 6501 of the Internal
Revenue Code of 1986 (relating to limitations on assessment and
collection) is amended by adding at the end the following new
paragraph:
            ``(5) Certain information returns to begin limitation
        periods on employment taxes.--For purposes of this section,
        if--
                    ``(A) a return is filed under section 6041 or 6041A
                which specifies an amount of payments made to any
                individual for services performed by such individual,
                and
                    ``(B) such payments are not taken into account in
                determining the taxes imposed by chapters 21 and 24,
        then, notwithstanding the last sentence of subsection (a), such
        return shall be treated as the return referred to in subsection
        (a) for purposes of determining the period of limitations with
        respect to such taxes on such services.''
    (b) Effective Date.--The amendment made by this section shall apply
to payments made after December 31, 2000.

Summary: Sets forth restrictions on retroactive employment tax reclassifications, including safe harbor requirements. Provides that the statute of limitations on assessment of employment taxes shall run beginning on the date certain information returns are filed.


SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Notch Fairness Act of 1998''.

SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE AMOUNT WHERE
              ELIGIBILITY ARISES DURING TRANSITIONAL PERIOD.

    (a) In General.--Section 215(a) of the Social Security Act is
amended--
            (1) in paragraph (4)(B), by inserting ``(with or without
        the application of paragraph (8))'' after ``would be made'',
        and by striking ``1984'' in clause (i) and inserting ``1989'';
        and
            (2) by adding at the end the following:
    ``(8)(A) In the case of an individual described in paragraph (4)(B)
(subject to subparagraphs (F) and (G) of this paragraph), the amount of
the individual's primary insurance amount as computed or recomputed
under paragraph (1) shall be deemed equal to the sum of--
            ``(i) such amount, and
            ``(ii) the applicable transitional increase amount (if
        any).
    ``(B) For purposes of subparagraph (A)(ii), the term `applicable
transitional increase amount' means, in the case of any individual, the
product derived by multiplying--
            ``(i) the excess under former law, by
            ``(ii) the applicable percentage in relation to the year in
        which the individual becomes eligible for old-age insurance
        benefits, as determined by the following table:

                  ``If the individual

                becomes eligible for
                                                         The applicable
                such benefits in:
                                                         percentage is:
                  1979...............................       55 percent
                  1980...............................       45 percent
                  1981...............................       35 percent
                  1982...............................       32 percent
                  1983...............................       25 percent
                  1984...............................       20 percent
                  1985...............................       16 percent
                  1986...............................       10 percent
                  1987...............................        3 percent
                  1988...............................        5 percent.
    ``(C) For purposes of subparagraph (B), the term `excess under
former law' means, in the case of any individual, the excess of--
            ``(i) the applicable former law primary insurance amount,
        over
            ``(ii) the amount which would be such individual's primary
        insurance amount if computed or recomputed under this section
        without regard to this paragraph and paragraphs (4), (5), and
        (6).
    ``(D) For purposes of subparagraph (C)(i), the term `applicable
former law primary insurance amount' means, in the case of any
individual, the amount which would be such individual's primary
insurance amount if it were--
            ``(i) computed or recomputed (pursuant to paragraph
        (4)(B)(i)) under section 215(a) as in effect in December 1978,
        or
            ``(ii) computed or recomputed (pursuant to paragraph
        (4)(B)(ii)) as provided by subsection (d),
(as applicable) and modified as provided by subparagraph (E).
    ``(E) In determining the amount which would be an individual's
primary insurance amount as provided in subparagraph (D)--
            ``(i) subsection (b)(4) shall not apply;
            ``(ii) section 215(b) as in effect in December 1978 shall
        apply, except that section 215(b)(2)(C) (as then in effect)
        shall be deemed to provide that an individual's `computation
        base years' may include only calendar years in the period after
        1950 (or 1936 if applicable) and ending with the calendar year
        in which such individual attains age 61, plus the 3 calendar
        years after such period for which the total of such
        individual's wages and self-employment income is the largest;
        and
            ``(iii) subdivision (I) in the last sentence of paragraph
        (4) shall be applied as though the words `without regard to any
        increases in that table' in such subdivision read `including
        any increases in that table'.
    ``(F) This paragraph shall apply in the case of any individual only
if such application results in a primary insurance amount for such
individual that is greater than it would be if computed or recomputed
under paragraph (4)(B) without regard to this paragraph.
    ``(G)(i) This paragraph shall apply in the case of any individual
subject to any timely election to receive lump sum payments under this
subparagraph.
    ``(ii) A written election to receive lump sum payments under this
subparagraph, in lieu of the application of this paragraph to the
computation of the primary insurance amount of an individual described
in paragraph (4)(B), may be filed with the Commissioner of Social
Security in such form and manner as shall be prescribed in regulations
of the Commissioner. Any such election may be filed by such individual
or, in the event of such individual's death before any such election is
filed by such individual, by any other beneficiary entitled to benefits
under section 202 on the basis of such individual's wages and self-
employment income. Any such election filed after December 31, 1998,
shall be null and void and of no effect.
    ``(iii) Upon receipt by the Commissioner of a timely election filed
by the individual described in paragraph (4)(B) in accordance with
clause (ii)--
            ``(I) the Commissioner shall certify receipt of such
        election to the Secretary of the Treasury, and the Secretary of
        the Treasury, after receipt of such certification, shall pay
        such individual, from amounts in the Federal Old-Age and
        Survivors Insurance Trust Fund, a total amount equal to $5,000,
        in 4 annual lump sum installments of $1,250, the first of which
        shall be made during fiscal year 1999 not later than July 1,
        1999, and
            ``(II) subparagraph (A) shall not apply in determining such
        individual's primary insurance amount.
    ``(iv) Upon receipt by the Commissioner as of December 31, 1998, of
a timely election filed in accordance with clause (ii) by at least one
beneficiary entitled to benefits on the basis of the wages and self-
employment income of a deceased individual described in paragraph
(4)(B), if such deceased individual has filed no timely election in
accordance with clause (ii)--
            ``(I) the Commissioner shall certify receipt of all such
        elections received as of such date to the Secretary of the
        Treasury, and the Secretary of the Treasury, after receipt of
        such certification, shall pay each beneficiary filing such a
        timely election, from amounts in the Federal Old-Age and
        Survivors Insurance Trust Fund, a total amount equal to $5,000
        (or, in the case of 2 or more such beneficiaries, such amount
        distributed evenly among such beneficiaries), in 4 equal annual
        lump sum installments, the first of which shall be made during
        fiscal year 1999 not later than July 1, 1999, and
            ``(II) solely for purposes of determining the amount of
        such beneficiary's benefits, subparagraph (A) shall be deemed
        not to apply in determining the deceased individual's primary
        insurance amount.''.
    (b) Effective Date and Related Rules.--
            (1) Applicability of amendments.--
                    (A) In general.--Except as provided in paragraph
                (2), the amendments made by this Act shall be effective
                as though they had been included or reflected in
                section 201 of the Social Security Amendments of 1977.
                    (B) Applicability.--No monthly benefit or primary
                insurance amount under title II of the Social Security
                Act shall be increased by reason of such amendments for
                any month before July 1999. The amendments made this
                section shall apply with respect to benefits payable in
                months in any fiscal year after fiscal year 2002 only
                if the corresponding decrease in adjusted discretionary
                spending limits for budget authority and outlays under
                section 3 of this Act for fiscal years prior to fiscal
                year 2003 is extended by Federal law to such fiscal
year after fiscal year 2002.
            (2) Recomputation to reflect benefit increases.--In any
        case in which an individual is entitled to monthly insurance
        benefits under title II of the Social Security Act for June
        1999, if such benefits are based on a primary insurance amount
        computed--
                    (A) under section 215 of such Act as in effect (by
                reason of the Social Security Amendments of 1977) after
                December 1978, or
                    (B) under section 215 of such Act as in effect
                prior to January 1979 by reason of subsection (a)(4)(B)
                of such section (as amended by the Social Security
                Amendments of 1977),
        the Commissioner of Social Security (notwithstanding section
        215(f)(1) of the Social Security Act) shall recompute such
        primary insurance amount so as to take into account the
        amendments made by this Act.

SEC. 3. OFFSET PROVIDED BY PROJECTED FEDERAL BUDGET SURPLUSES.

    Amounts offset by this Act shall not be counted as direct spending
for purposes of the budgetary limits provided in the Congressional
Budget Act of 1974 and the Balanced Budget and Emergency Deficit
Control Act of 1985.

Summary: Notch Fairness Act of 1998 - Amends title II (OASDI) of the Social Security Act to revise the formula for the computation of minimum old age insurance benefits for individuals who reached age 65 in or after 1979 and to whom applies the 15-year transition period for the changes in benefit computation rules enacted in the Social Security Amendments of 1977. Sets forth a schedule of additional benefit increases for such beneficiaries , with percentages declining from 55 percent to five percent and keyed to the year an individual became eligible for such benefits between 1979 and 1988. Allows such beneficiaries, in the alternative, to receive lump sum payments over four years totaling $5,000. Provides that amounts offset by this Act shall not be counted as direct spending for purposes of the budgetary limits provided in the Congressional Budget Act of 1974 and the Balanced Budget and Emergency Deficit Control Act of 1985 .

Notch Fairness Act of 1998