Senate Votes to Reinstate Export Control Law.

Penalties for violations of U.S. export-control regulations would be increased under a bill passed by the Senate. H.R. 5239, offered by Senate Banking Committee Chairman Phil Gramm, R-Texas, resurrects the Export Authorization Act, which expired in 1994, for one year.

Previous efforts to bring back this law have failed. In the meantime, U.S. export controls are administered under the weaker International Emergency Economic Powers Act.

The Commerce Department supports the Senate legislation, arguing that it would make it easier to enforce U.S. export controls. "It's clear that everyone up there [on Capitol Hill] appreciates the situation we're in and agrees with us that remedial action is necessary," said William Reinsch, undersecretary of commerce for export administration.

Sen. Michael Enzi, R-Wyo.--chairman of the Senate Banking Subcommittee on International Trade and Finance--said that H.R. 5239 will protect national security and give lawmakers the opportunity to bring about comprehensive export control reform. The legislation passed by a voice vote, and now goes back to the House, where supporters hope to win final passage.

China Trade Relations

After years of discourse, President Clinton signed the legislation granting Permanent Normal Trade Relations (PNTR) to China. Upon signing H.R. 4444, the president said that China still must be monitored for its adherence to basic human rights practices. But in general, he was optimistic about the move toward market expansion.

"Trade with China will not only extend our nation's unprecedented economic growth, it offers us a chance to help shape the future of the world's most populous nation, and to reaffirm our own global leadership for peace and prosperity," Clinton said.

Even as the bill was signed, it was acknowledged widely that there are still many barriers to trade with China. Passage of PNTR, for example, does not guarantee China's acceptance into the World Trade Organization (WTO). Once China does become a part of the WTO, however, U.S. products and services will have access to a huge new market.

Small Businesses

President Clinton recently issued an executive order aimed at increasing opportunities for disadvantaged businesses.

To provide for increased access for minority and women-owned businesses to federal contracting opportunities, the president's directive orders that each agency or department with procurement authority aggressively seek to assure that businesses in the Small Disadvantaged Business Program (SDBs) are aware of future prime contracting opportunities.

Agencies and departments are directed to work with the Small Business Administration (SBA) to ensure that information regarding sole source contracts awarded to small businesses receive the widest dissemination possible. The order reiterates that the government-wide goal for participation of small business concerns is not less than 23 percent of federal prime contracts. Also, the order directs agencies and departments to develop federal advertising campaigns aimed at ensuring substantial minority-owned entities' participation.

Early Retirement and Buyouts

The Defense Department soon will focus on workforce restructuring. Under the 2001 Defense Authorization bill, the Pentagon will offer cash buyouts to civilian employees who volunteer to retire early or quit.

Employees will be offered up to $25,000, and the department will be able to offer a total of 1,000 buyouts in fiscal year 2001.

In the past, buyouts have required the department to abolish a position when it buys out an employee, but this legislation does not have that requirement.

The legislation is meant to give the Pentagon the opportunity to focus on reshaping the workforce rather than simply reducing it.

Veterans Benefits Increased

As it has in every year since 1976, Congress has voted again to increase veterans' compensation. This year, lawmakers approved many across-the-board increases in benefits, in the form of new policies and compensation opportunities. In recent months, Congress has passed four such bills.

First, the 2001 Defense Authorization Act provides lifetime health care for military retirees, including a prescription drug benefit for all Medicare-eligible military retirees.

Second, H.R. 4850--the Veterans Benefits Act of 2000--contains provisions increasing life insurance, disability compensation, and dependency and indemnity compensation.

Third, H.R. 4864--the Veterans Claims Assistance Act--requires the Department of Veterans Affairs to provide assistance to veterans who file claims for VA benefits.

Finally, S.1402--the Veterans and Dependents Millennium Education Act--makes a number of changes to the veterans' health-care system, expands educational benefits under the Montgomery GI Bill, and boosts Survivors' and Dependents' Educational Assistance benefits.

Congress has cleared each of these measures for the White House. The Congressional Budget Office (CBO) estimates that costs of the four bills add up to approximately $24.8 billion over five years.

Aerospace Industry

The 2001 Defense Authorization Act establishes a 12-member Commission on the Future of the U.S. Aerospace Industry. Commission members are to be appointed no later than March 1, 2001, and will be selected from the aerospace industry, national security, foreign policy and international trade fields and from labor organizations associated with the aerospace industry. The president will appoint the commission chair.

The commission is directed to study issues associated with the future of the industry in the global economy, particularly in relationship to U.S. national security and to assess the future importance of the domestic aerospace industry for the economic and national security of the United States.

As such, budget, acquisition policy, technology, financing and contracting, international trade, tax, infrastructure, and science engineering education issues are to be studied by the commission. The commission is directed to submit its findings, conclusions and recommendations to the president and Congress no later than March 1, 2002.