1 Union Calendar No. 502 107TH CONGRESS "!REPORT 2d Session HOUSE OF REPRESENTATIVES 107–801 REPORT ON THE LEGISLATIVE AND OVERSIGHT ACTIVITIES OF THE COMMITTEE ON WAYS AND MEANS DURING THE 107TH CONGRESS JANUARY 2, 2003.—Committed to the Committee of the Whole House on the State of the Union and ordered to be printed U.S. GOVERNMENT PRINTING OFFICE 19–006 WASHINGTON : 2003 COMMITTEE ON WAYS AND MEANS BILL THOMAS, California, Chairman PHILIP M. CRANE, Illinois CHARLES B. RANGEL, New York E. CLAY SHAW, JR., Florida FORTNEY PETE STARK, California NANCY L. JOHNSON, Connecticut ROBERT T. MATSUI, California AMO HOUGHTON, New York WILLIAM J. COYNE, Pennsylvania WALLY HERGER, California SANDER M. LEVIN, Michigan JIM MCCRERY, Louisiana BENJAMIN L. CARDIN, Maryland DAVE CAMP, Michigan JIM MCDERMOTT, Washington JIM RAMSTAD, Minnesota GERALD D. KLECZKA, Wisconsin JIM NUSSLE, Iowa JOHN LEWIS, Georgia SAM JOHNSON, Texas RICHARD E. NEAL, Massachusetts JENNIFER DUNN, Washington MICHAEL R. MCNULTY, New York MAC COLLINS, Georgia WILLIAM J. JEFFERSON, Louisiana ROB PORTMAN, Ohio JOHN S. TANNER, Tennessee PHIL ENGLISH, Pennsylvania XAVIER BECERRA, California WES WATKINS, Oklahoma KAREN L. THURMAN, Florida J.D. HAYWORTH, Arizona LLOYD DOGGETT, Texas JERRY WELLER, Illinois EARL POMEROY, North Dakota KENNY C. HULSHOF, Missouri SCOTT MCINNIS, Colorado RON LEWIS, Kentucky MARK FOLEY, Florida KEVIN BRADY, Texas PAUL RYAN, Wisconsin (II) LETTER OF TRANSMITTAL HOUSE OF REPRESENTATIVES, COMMITTEE ON WAYS AND MEANS, Washington, DC, January 2, 2003. Hon. JEFF TRANDAHL, Office of the Clerk, House of Representatives, The Capitol, Washington, DC. DEAR MR. TRANDAHL: 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 107th Congress. Best regards, BILL THOMAS, Chairman. (III) C O N T E N T S Page Transmittal Letter ................................................................................................... III Forward .................................................................................................................... VII I. Legislative Activity Review ............................................................................. 1 A. Legislative Review of Tax, Trust Fund, and Pension Issues ............ 1 B. Legislative Review of Trade Issues ..................................................... 22 C. Legislative Review of Health Issues ................................................... 51 D. Legislative Review of Social Security Issues ...................................... 55 E. Legislative Review of Human Resources Issues ................................ 59 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 ............................................................................................ 77 C. Additional oversight activities, and any recommendations or ac- tions taken .......................................................................................... 102 Appendix I. Jurisdiction of the Committee on Ways and Means ........................ 07 Appendix II. Historical Note ................................................................................... 23 Appendix III. Statistical Review of the Activities of the Committee on Ways and Means ............................................................................................................ 29 Appendix IV. Chairmen of the Committee on Ways and Means and Member- ship of the Committee from the 1st through the 107th Congresses ................ 33 (V) 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 107th 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 107th 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) The bonded debt of the United States, subject to the last sentence of clause 4(f). (VII) 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 107th 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 indi- cate the necessity or desirability of enacting new or additional 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 does not limit the responsibility of a subcommittee with legislative jurisdic- tion in carrying out its oversight responsibilities. IX (c) Each standing committee shall review and study on a continuing basis the impact or probable impact of tax policies affecting subjects within its jurisdiction as de- scribed in clauses 1 and 3. (d)(1) Not later than February 15 of the first session of a Congress, each standing committee shall, in a meeting that is open to the public and with a quorum present, adopt its oversight plans for that Congress. Such plan shall be submitted simultaneously to the Committee on Government Reform and to the Committee on House Ad- ministration. In developing its plan each committee shall, to the maximum extent feasible— (A) consult with other committees that have jurisdic- tion over the same or related laws, programs, or agen- cies within its jurisdiction with the objective of ensur- ing maximum coordination and cooperation among