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1 Union Calendar No. 438 109TH CONGRESS " ! REPORT 2d Session HOUSE OF REPRESENTATIVES 109–736 REPORT ON THE LEGISLATIVE AND OVERSIGHT ACTIVITIES OF THE COMMITTEE ON WAYS AND MEANS DURING THE 109TH CONGRESS DECEMBER 22, 2006.—Committed to the Committee of the Whole House on the State of the Union and ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 59–006 WASHINGTON : 2006 VerDate Aug 31 2005 01:47 Jan 04, 2007 Jkt 059006 PO 00000 Frm 00001 Fmt 4012 Sfmt 4012 E:\HR\OC\HR736.XXX HR736 jcorcoran on PROD1PC62 with REPORTS E:\Seals\Congress.#13 COMMITTEE ON WAYS AND MEANS BILL THOMAS, California, Chairman E. CLAY SHAW, JR., Florida CHARLES B. RANGEL, New York NANCY L. JOHNSON, Connecticut FORTNEY PETE STARK, California WALLY HERGER, California SANDER M. LEVIN, Michigan JIM MCCRERY, Louisiana BENJAMIN L. CARDIN, Maryland DAVE CAMP, Michigan JIM MCDERMOTT, Washington JIM RAMSTAD, Minnesota JOHN LEWIS, Georgia JIM NUSSLE, Iowa RICHARD E. NEAL, Massachusetts SAM JOHNSON, Texas MICHAEL R. MCNULTY, New York PHIL ENGLISH, Pennsylvania JOHN S. TANNER, Tennessee J.D. HAYWORTH, Arizona XAVIER BECERRA, California JERRY WELLER, Illinois LLOYD DOGGETT, Texas KENNY C. HULSHOF, Missouri EARL POMEROY, North Dakota RON LEWIS, Kentucky STEPHANIE TUBBS JONES, Ohio KEVIN BRADY, Texas MIKE THOMPSON, California PAUL RYAN, Wisconsin JOHN B. LARSON, Connecticut ERIC CANTOR, Virginia RAHM EMANUEL, Illinois JOHN LINDER, Georgia BOB BEAUPREZ, Colorado MELISSA HART, Pennsylvania CHRIS CHOCOLA, Indiana DEVIN NUNES, California (II) VerDate Aug 31 2005 01:47 Jan 04, 2007 Jkt 059006 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 E:\HR\OC\HR736.XXX HR736 jcorcoran on PROD1PC62 with REPORTS LETTER OF TRANSMITTAL U.S. HOUSE OF REPRESENTATIVES, COMMITTEE ON WAYS AND MEANS, Washington, DC, December 22, 2006. Hon. KAREN HAAS, Office of the Clerk, House of Representatives, Washington, DC. DEAR MS. HAAS: I am herewith transmitting, pursuant to House Rule XI, clause 1(d), the report of the Committee on Ways and Means on its legislative and oversight activities during the 109th Congress. Sincerely, BILL THOMAS, Chairman. (III) VerDate Aug 31 2005 01:47 Jan 04, 2007 Jkt 059006 PO 00000 Frm 00003 Fmt 7633 Sfmt 7633 E:\HR\OC\HR736.XXX HR736 jcorcoran on PROD1PC62 with REPORTS VerDate Aug 31 2005 01:47 Jan 04, 2007 Jkt 059006 PO 00000 Frm 00004 Fmt 7633 Sfmt 7633 E:\HR\OC\HR736.XXX HR736 jcorcoran on PROD1PC62 with REPORTS C O N T E N T S Page Transmittal Letter ................................................................................................... III Foreword ................................................................................................................... VII I. Legislative Activity Review ............................................................................. 1 A. Legislative Review of Tax, Trust Fund, and Pension Issues ............ 1 B. Legislative Review of Trade Issues ..................................................... 29 C. Legislative Review of Health Issues ................................................... 52 D. Legislative Review of Social Security Issues ...................................... 57 E. Legislative Review of Human Resources Issues ................................ 60 F. Legislative Review of Debt Issues ....................................................... 68 II. Oversight Activity Review ............................................................................... 68 A. Oversight Agenda ................................................................................. 68 B. Actions taken and recommendations made with respect to over- sight plan ............................................................................................ 75 C. Additional oversight activities, and any recommendations or ac- tions taken .......................................................................................... 106 Appendix I. Jurisdiction of the Committee on Ways and Means ........................ 109 Appendix II. Historical Note ................................................................................... 130 Appendix III. Statistical Review of the Activities of the Committee on Ways and Means ............................................................................................................ 136 Appendix IV. Chairmen of the Committee on Ways and Means and Member- ship of the Committee from the 1st through the 109th Congresses ................ 140 (V) VerDate Aug 31 2005 01:47 Jan 04, 2007 Jkt 059006 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 E:\HR\OC\HR736.XXX HR736 jcorcoran on PROD1PC62 with REPORTS VerDate Aug 31 2005 01:47 Jan 04, 2007 Jkt 059006 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 E:\HR\OC\HR736.XXX HR736 jcorcoran on PROD1PC62 with REPORTS FOREWORD Clause 1(d) of Rule XI of the Rules of the House, regarding the rules of procedure for committees, contains a requirement that each committee prepare a report at the conclusion of each Congress summarizing its activities. The 104th Congress added subsections on legislative and oversight activities, including a summary com- parison of oversight plans and eventual recommendations and ac- tions. The full text of the Rule, as recodified in the 109th Congress, follows: (d)(1) Each committee shall submit to the House not later than January 2 of each odd-numbered year a report on the activities of that committee under this rule and rule X during the Congress ending at noon on January 3 of such year. (2) Such report shall include separate sections summa- rizing the legislative and oversight activities of that com- mittee during that Congress. (3) The oversight section of such report shall include a summary of the oversight plans submitted by the com- mittee under clause 2(d) of rule X, a summary of the ac- tions taken and recommendations made with respect to each such plan, a summary of any additional oversight ac- tivities undertaken by that committee, and any rec- ommendations made or actions taken thereon. (4) After an adjournment sine die of the last regular ses- sion of a Congress, the chairman of a committee may file an activities report under subparagraph (1) with the Clerk at any time and without approval of the committee, pro- vided that (A) a copy of the report has been available to each member of the committee for at least seven calendar days; and (B) the report includes any supplemental, minority, or additional view submitted by a member of the com- mittee. The jurisdiction of the Committee on Ways and Means during the 109th Congress is provided in Rule X, clause 1(s), as follows: (s) Committee on Ways and Means. (1) Customs, collection districts, and ports of entry and delivery. (2) Reciprocal trade agreements. (3) Revenue measures generally. (4) Revenue measures relating to the insular posses- sions. (5) Bonded debt of the United States, subject to the last sentence of clause 4(f). (VII) VerDate Aug 31 2005 01:47 Jan 04, 2007 Jkt 059006 PO 00000 Frm 00007 Fmt 7633 Sfmt 6969 E:\HR\OC\HR736.XXX HR736 jcorcoran on PROD1PC62 with REPORTS VIII (6) Deposit of public monies. (7) Transportation of dutiable goods. (8) Tax exempt foundations and charitable trusts. (9) National social security (except health care and facilities programs that are supported from general revenues as opposed to payroll deductions and except work incentive programs). The general oversight responsibilities of committees are set forth in clause 2 of Rule X. The 104th Congress also added the require- ment in clause 2 of Rule X that each standing committee submit its oversight plans for each Congress. The text of the Rule, as re- codified in the 109th Congress, in pertinent part, follows: 2. (a) The various standing committees shall have gen- eral oversight responsibilities as provided in paragraph (b) in order to assist the House in (1) its analysis, appraisal, and evaluation of (A) the application, administration, execution, and effectiveness of Federal laws; and (B) conditions and circumstances that may indicate the necessity or desirability of enacting new or addi- tional legislation; and (2) its formulation, consideration, and enactment of changes in Federal laws, and of such additional legis- lation as may be necessary or appropriate. (b)(1) In order to determine whether laws and programs addressing subjects within the jurisdiction of a committee are being implemented and carried out in accordance with the intent of Congress and whether they should be contin- ued, curtailed, or eliminated, each standing committee (other than the Committee on Appropriations) shall review and study on a continuing basis (A) the application, administration, execution, and effectiveness of laws and programs addressing subjects within its jurisdiction; (B) the organization and operation of the Federal agencies and entities having responsibilities for the administration and execution of laws and programs addressing subjects within its jurisdiction; (C) any conditions or circumstances that may indi- cate the necessity or desirability of enacting new or additional legislation addressing subjects within its ju- risdiction (whether or not a bill or resolution has been introduced with respect thereto); and (D) future research and forecasting on subjects with- in its jurisdiction. (2) Each committee to which subparagraph (1) applies having more than 20 members shall establish an oversight subcommittee, or require its subcommittees to conduct oversight in their respective jurisdictions, to assist in car- rying out its responsibilities under this clause. The estab- lishment of an oversight subcommittee
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