I

104TH CONGRESS

1ST SESSION H. R. 1923

To balance the budget of the United States Government by restructuring

Government, reducing Federal spending, eliminating the deficit, limiting

bureaucracy, and restoring federalism.

IN THE HOUSE OF REPRESENTATIVES

JUNE 22, 1995

Mr. SOLOMON (for himself, Mr. GOSS, Mr. HANCOCK, Mr. UPTON, Mr.

ZELIFF, Mr. NEUMANN, and Mr. ZIMMER) introduced the following bill;

which was referred to the Committee on Government Reform and Oversight, and in addition to the Committees on National Security, Banking

and Financial Services, International Relations, Science, Commerce, Resources, Rules, Transportation and Infrastructure, Agriculture, Small

Business, the Judiciary, Ways and Means, Economic and Educational

Opportunities, the Budget, Veterans’ Affairs, House Oversight, and Intelligence (Permanent Select), for a period to be subsequently determined

by the Speaker, in each case for consideration of such provisions as fall

within the jurisdiction of the committee concerned

A BILL

To balance the budget of the United States Government

by restructuring Government, reducing Federal spending,

eliminating the deficit, limiting bureaucracy, and restoring federalism.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Restructuring a Limited Government Act’’.

4 (b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents

Sec. 2. Effective date.

TITLE I—NATIONAL DEFENSE

Subtitle A—Restore Defense Spending

Sec. 1001. Conformance with bottom up review.

Subtitle B—Rescission of Funding for Programs Not Requested by the

Department of Defense

Sec. 1111. Rescission of funds for general purpose bomb program.

Sec. 1112. Rescission of funds for C–12F aircraft program.

Sec. 1113. Rescission of funds for P–3 upgrade program.

Subtitle C—Limitations on Funding for Certain Programs for Fiscal Year

1996

Sec. 1211. Environmental defense fund.

Sec. 1212. Former Soviet Union threat reduction.

Subtitle D—Department of Defense Administrative Reforms

Sec. 1311. Military severance pay.

Sec. 1312. Restriction on eligibility for aviation career incentive pay.

Sec. 1313. Cancellation of learning resource center program.

Subtitle E—Department of Defense Program Reforms

Sec. 1411. Intelligence community reorganization and personnel reduction.

Sec. 1412. Limitation on procurement of Seawolf submarine program.

Sec. 1413. Required disposal of excess and obsolete materials in National Defense Stockpile.

TITLE II—INTERNATIONAL AFFAIRS

Subtitle A—Reduce Multilateral Development Bank Credit Assistance

Sec. 2001. Reduction of credit assistance by the Export-Import Bank of the

United States.

Sec. 2002. Termination of capital contributions to certain multilateral development institutions.

Sec. 2003. Deobligation of certain unexpended foreign economic assistance

funds.

Sec. 2004. Reduction in contribution to International Development Association.

Sec. 2005. Reduction of Economic Support Fund assistance.

Sec. 2006. Reduction of bilateral development assistance.

Sec. 2007. Limitation on United States contributions to the United Nations.
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Subtitle B—Reduce Foreign Aid Direct Assistance

Sec. 2101. Reduction in assistance for Eastern Europe and the Baltic States.

Sec. 2102. Prohibition on foreign assistance to Russia.

Subtitle C—Reduce Humanitarian Assistance Programs

Sec. 2201. Authorization of appropriations for educational and cultural exchange programs.

Sec. 2202. Peace Corps funding.

Sec. 2203. Assistance for the Middle East.

Sec. 2204. Elimination of Public Law 480 title I and title III programs.

Sec. 2205. Abolition of Foreign Claims Settlement Commission.

Subtitle D—Department Reforms

Sec. 2301. Reduction in overhead expenses of Export-Import Bank.

Sec. 2302. Transfers from exchange stabilization fund to the general fund of

the Treasury.

Subtitle E—State Department Reforms

CHAPTER 1—UNITED STATES ARMS CONTROL AND DISARMAMENT AGENCY

Sec. 2401. Abolition of the ACDA; references in part.

Sec. 2402. Repeal of positions and offices.

Sec. 2403. Authorities of the Secretary of State.

Sec. 2404. Authorization of appropriations.

Sec. 2405. Conforming amendments.

Sec. 2406. References in law.

Sec. 2407. Effective date.

CHAPTER 2—UNITED STATES INFORMATION AGENCY

Sec. 2431. Abolition.

Sec. 2432. References in law.

Sec. 2433. Amendments to title 5.

Sec. 2434. Amendments to United States Information and Educational Exchange Act of 1948.

Sec. 2435. Amendments to the Mutual Educational and Cultural Exchange Act

of 1961 (Fulbright-Hays act).

Sec. 2436. International broadcasting activities.

Sec. 2437. Television broadcasting to Cuba.

Sec. 2438. Radio broadcasting to Cuba.

Sec. 2439. National Endowment for Democracy.

Sec. 2430. United States scholarship program for developing countries.

Sec. 2431. National Security Education Board.

Sec. 2432. Center for cultural and technical interchange between North and

South.

Sec. 2433. Center for cultural and technical interchange between East and

West.

Sec. 2434. Mission of the Department of State.

Sec. 2435. Consolidation of administrative services.

Sec. 2436. Grants.

Sec. 2437. Ban on domestic activities.

Sec. 2438. Conforming repeal to the Arms Control and Disarmament Act.

Sec. 2439. Repeal relating to procurement of legal services.
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Sec. 2440. Repeal relating to payment of subsistence expenses.

Sec. 2441. Conforming amendment to the Seed Act.

Sec. 2442. International Cultural and Trade Center Commission.

Sec. 2443. Other laws referenced in Reorganization Plan No. 2 of 1977.

Sec. 2444. Exchange program with countries in transition from totalitarianism

to democracy.

Sec. 2445. Edmund S. Muskie Fellowship Program.

Sec. 2446. Implementation of convention on cultural property.

Sec. 2447. Repeal.

Sec. 2448. United States Advisory Committee for public diplomacy.

Sec. 2449. Effective date.

CHAPTER 3—AGENCY FOR INTERNATIONAL DEVELOPMENT

SUBCHAPTER A—GENERAL PROVISIONS

Sec. 2451. Effective date.

Sec. 2452. References in this chapter.

SUBCHAPTER B—ABOLITION OF THE AGENCY FOR INTERNATIONAL

DEVELOPMENT AND TRANSFER OF FUNCTIONS TO THE SECRETARY OF STATE

Sec. 2455. Abolition of agency for international development and the international development cooperation agency.

Sec. 2456. Transfer of functions to Secretary of State.

SUBCHAPTER C—REORGANIZATION OF DEPARTMENT OF STATE RELATING TO

FUNCTIONS TRANSFERRED UNDER THIS CHAPTER

Sec. 2461. Reorganization plan.

Sec. 2462. Principal officers.

SUBCHAPTER D—CONFORMING AMENDMENTS

Sec. 2465. References.

Sec. 2466. Abolition of office of Inspector General of the agency for international development and transfer of functions to Office of Inspector General of the Department of State.

Sec. 2467. Abolition of Chief Financial Officer of the Agency for International

Development and transfer of functions to Chief Financial Officer Department of State.

Sec. 2468. Amendments to title 5, United States Code.

Sec. 2469. Public Law 480 program.

CHAPTER 4—ORGANIZATION OF THE DEPARTMENT OF STATE AND FOREIGN

SERVICE

Sec. 2471. Office of the Secretary of State.

Sec. 2472. Under Secretaries.

Sec. 2473. Assistant Secretaries of State.

Sec. 2474. Other State Department positions.

Sec. 2475. Inspector General for Foreign Affairs.

Sec. 2476. Rates of pay.

Sec. 2477. Repeal of previously created State Department positions.

Sec. 2478. Limitation on personnel strength of the Department of State.

Sec. 2479. Consolidation of United States diplomatic missions and consular

posts.

Sec. 2480. Detail of other agency personnel to State Department.
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Sec. 2481. Report on unification of United States and foreign commercial service and foreign agricultural service within the Foreign Service.

TITLE III—SCIENCE, SPACE, AND TECHNOLOGY

Subtitle A—Administrative and Research Savings

Sec. 3001. Nuclear energy research and development.

Sec. 3002. National Science Foundation Grant application fee.

Sec. 3003. High performance computing program.

Subtitle B—Specific Program Reforms

Sec. 3011. National Science Foundation.

Sec. 3012. Space station.

Sec. 3013. Cancellation of National Aerospace Plane.

TITLE IV—ENERGY

Subtitle A—Abolishment of Department of Energy

Sec. 4001. Short title.

CHAPTER 1—ABOLISHMENT OF DEPARTMENT OF ENERGY

Sec. 4011. Reestablishment of Department as Energy Programs Resolution

Agency.

Sec. 4012. Functions.

Sec. 4013. Deputy Administrator.

Sec. 4014. Continuation of service of Department officers.

Sec. 4015. Reorganization.

Sec. 4016. Abolishment of Energy Programs Resolution Agency.

Sec. 4017. GAO report.

Sec. 4018. Conforming amendments.

Sec. 4019. Effective date.

CHAPTER 2—ENERGY LABORATORY FACILITIES

Sec. 4021. Energy Laboratory Facilities Commission.

Sec. 4022. Procedure for making recommendations for laboratory facilities.

Sec. 4023. Reconfiguration, privatization, and closure of energy laboratories.

Sec. 4024. Implementation of reconfiguration, privatization, and closure actions.

Sec. 4025. Account.

Sec. 4026. Reports on implementation.

Sec. 4027. Congressional consideration of Commission report.

Sec. 4028. Definitions.

CHAPTER 3—PRIVATIZATION OF FEDERAL POWER MARKETING

ADMINISTRTIONS

Sec. 4031. Short title.

Sec. 4032. Findings.

Sec. 4033. Sale of assets.

Sec. 4034. Time of sales.

Sec. 4035. Rate stabilization for affected consumers.

Sec. 4036. Licensing of projects to preserve current operating conditions.

Sec. 4037. Enabling Federal studies.
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Sec. 4038. Definitions.

CHAPTER 4—TRANSFER AND DISPOSAL OF RESERVES

Sec. 4041. Strategic petroleum reserve.

Sec. 4042. Transfer of naval petroleum reserves to Department of the Interior

with instructions to sell the reserves.

CHAPTER 5—NATIONAL SECURITY AND ENVIRONMENTAL MANAGEMENT

PROGRAMS

Sec. 4051. Definitions.

Sec. 4052. Establishment and organization of Defense Nuclear Programs Agency.

Sec. 4053. Functions of Defense Nuclear Programs Agency.

Sec. 4054. Transfers of functions.

Sec. 4055. Limitation on transfers of funds.

Sec. 4056. Transition provisions.

Sec. 4057. Technical and conforming amendments.

Sec. 4058. Effective date and transition period.

Sec. 4059. Environmental restoration activities at defense nuclear facilities.

CHAPTER 6—DISPOSITION OF MISCELANEOUS PARTICULAR PROGRAMS,

FUNCTIONS, AND AGENCIES OF DEPARTMENT

Sec. 4061. Energy research and development.

Sec. 4062. Energy Information Administration.

Sec. 4063. Energy Regulatory Administration.

Sec. 4064. Effective date.

CHAPTER 7—INTERIM WASTE STORAGE

Sec. 4071. Waste site work under Nuclear Waste Policy Act of 1982.

Sec. 4072. Office of civilian radioactive waste management.

Sec. 4073. Interim storage at Federal facility.

CHAPTER 8—MISCELLANEOUS PROVISIONS

Sec. 4081. References.

Sec. 4082. Exercise of authorities.

Sec. 4083. Savings provisions.

Sec. 4084. Transfer of assets.

Sec. 4085. Delegation and assignment.

Sec. 4086. Authority of Office of Management and Budget with respect to

functions transferred.

Sec. 4087. Proposed changes in law.

Sec. 4088. Certain vesting of functions considered transfer.

Sec. 4089. Definitions.

Subtitle B—Reform Federal Petroleum Reserve Programs

Sec. 4101. Sale of naval petroleum reserves.

Sec. 4102. Strategic Petroleum Reserve acquisitions.

Subtitle C—Reform Fossil Fuel and Mineral Research Development Programs

Sec. 4201. Privatization of United States enrichment corporation.

Sec. 4202. Research and development.
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Sec. 4203. Termination of Clean Coal Technology program.

Sec. 4204. Termination of atomic vapor isotope separation program.

Subtitle D—Reform Energy Conservation Programs

Sec. 4301. Weatherization.

Sec. 4302. State energy conservation program.

Sec. 4303. Institutional conservation.

TITLE V—ENVIRONMENT

Subtitle A—Public Land Use and Purchase Reforms

Sec. 5001. Moratorium on land acquisition by certain agencies.

Sec. 5002. Prohibition on timber sales in units of the National Forest System

in which timber sale expenses consistently exceed timber sale

revenues.

Sec. 5003. Permanent limitations on amounts authorized to be appropriated for

the National Forest System and related agriculture conservation and forestry programs.

Sec. 5004. Hetch hetchy.

Sec. 5005. Mineral leasing of lands within Arctic National Wildlife Refuge.

Sec. 5006. National Park Service user fees and entrance fees.

Subtitle B—Environmental Conservation, Cleanup, and Research Reforms

Sec. 5101. Preference for interim measures in Superfund response actions.

Sec. 5102. Elimination of the conservation reserve program.

Sec. 5103. Elimination of funding for State water pollution control revolving

funds.

Sec. 5104. Elimination of funding for watershed and flood prevention operations.

Sec. 5105. Obligation limitation for flood control and coastal emergencies.

Sec. 5106. Obligation limitation for flood control, Mississippi River and tributaries.

Subtitle C—Restructuring of Department of the Interior

Sec. 5201. Limitation on acquisition of lands by Bureau of Land Management.

Sec. 5202. Abolition of Bureau of Mines.

Sec. 5203. Sale of helium processing and storage facility.

Sec. 5204. Abolition of geological survey.

Sec. 5205. Downsizing of Minerals Management Service.

Sec. 5206. Downsizing of Bureau of Reclamation.

Sec. 5207. Consolidation of Bureau of Indian Affairs.

Sec. 5208. Abolition of Office of Territorial and International Affairs.

Sec. 5209. Abolition of National Biological Survey.

Sec. 5210. Hardrock mining royalties.

Subtitle D—Administrative Reform

Sec. 5301. Reduction in overhead expenses of Environmental Protection Agency.

Subtitle E—National Marine Program Reforms

Sec. 5401. Termination of National Coastal Zone Management grants and National Sea Grant College Program Grants.
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Sec. 5402. Disposal of National Oceanic and Atmospheric Administration fleet.

Sec. 5403. Rescission of funds available for national oceanic and atmospheric

administration procurement and modernization.

Sec. 5404. Rescission of funds available for National Oceanic and Atmospheric

Administration Construction.

Subtitle F—Corps of Engineers Reform

Sec. 5501. Reorganization of Corps of Engineers.

Sec. 5502. Obligation limitation for Corps of Engineers construction.

Sec. 5503. Obligation limitation for Corps of Engineers operation and maintenance.

Sec. 5504. Obligation limitation for Corps of Engineers general investigations.

TITLE VI—AGRICULTURE

Subtitle A—Agriculture Research and Extension

Sec. 6001. Consolidation of Agricultural Research Service, Cooperative State

Research Service, and Extension Service.

Sec. 6002. Termination of Cooperative Agricultural Extension work in District

of Columbia.

Sec. 6003. Rural technology grants.

Sec. 6004. Cap on authorization of appropriations for agricultural telecommunications program.

Sec. 6005. Cap on authorization of appropriations for renewable resources extension program.

Subtitle B—Agricultural Trade

Sec. 6101. Reduction of spending for export marketing and international activities.

Sec. 6102. Elimination of export enhancement program.

Sec. 6103. Reduction of loan guarantee program.

Sec. 6104. Elimination of market promotion program.

Subtitle C—Department of Agriculture Overhead Reduction

Sec. 6201. Reduction in overhead expenses of Department of Agriculture.

Subtitle D—Loan Reform

Sec. 6301. Termination of grant program to assist State mediation programs.

Subtitle F—Crop Commodity Reform

Sec. 6401. Elimination of price support programs for agricultural commodities

and related marketing quotas.

Sec. 6402. Eliminating Federal support for honey.

TITLE VII—COMMERCE AND HOUSING CREDIT

Subtitle A—Small Business Adminstration Reform

CHAPTER 1—REORGANIZATION OF SMALL BUSINESS FUNCTIONS

Sec. 7001. Termination of Small Business Administration.

Sec. 7002. Establishment of Office of Small Business Advocacy in Executive

Office of the President.
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Sec. 7003. Conforming amendments to title 5, United States Code.

CHAPTER 2—REPEALS

Sec. 7010. Repeal of Small Business Act and Small Business Investment Act

of 1958.

Sec. 7011. Continued effectiveness of certain functions.

Sec. 7012. Continued applicability of certain provisions.

CHAPTER 3—TRANSFERS

Sec. 7020. Size standards for small business concerns; government procurement

programs.

Sec. 7021. Maintenance of national small business economic indices.

Sec. 7022. Transfer of financial obligations owned by Small Business Administration.

CHAPTER 4—GENERAL ADMINISTRATIVE PROVISIONS

Sec. 7030. Transfer of authorities.

Sec. 7031. Organizational entities and offices.

Sec. 7032. Delegation of functions.

Sec. 7033. Rules and regulations.

Sec. 7034. Transfer of fund accounts.

CHAPTER 5—TRANSITIONAL, SAVINGS, AND CONFORMING PROVISIONS

Sec. 7040. Transfers.

Sec. 7041. Director of Office of Management and Budget.

Sec. 7042. Savings provisions.

Sec. 7043. Coordination of transfer activities.

Sec. 7044. References.

Sec. 7045. Transitional period.

Sec. 7046. Effective date.

Subtitle B—Housing Credit Reform

Sec. 7101. Elimination of FMHA direct loans for single family homes.

Sec. 7102. Increased fees for FMHA single family housing loan guarantees.

Sec. 7103. Delegation of single family mortgage insuring authority to mortgagees and secondary market entities.

Subtitle C—Abolition of Department of Commerce and Disposition of

Particular Programs, Functions, and Agencies

CHAPTER 1—ABOLITION OF DEPARTMENT OF COMMERCE

Sec. 7201. Reestablishment of Department as Commerce Programs Resolution

Agency.

Sec. 7202. Functions.

Sec. 7203. Deputy Administrator.

Sec. 7204. Continuation of service of department officers.

Sec. 7205. Reorganization.

Sec. 7206. Abolishment of Commerce Programs Resolution Agency.

Sec. 7207. GAO report.

Sec. 7208. Conforming amendments.

Sec. 7209. Effective date.
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CHAPTER 2—DISPOSITION OF PARTICULAR PROGRAMS, FUNCTIONS, AND

AGENCIES OF DEPARTMENT OF COMMERCE

Sec. 7231. Economic development.

Sec. 7232. Export control functions.

Sec. 7233. National security functions.

Sec. 7234. International trade functions.

Sec. 7235. Patent and Trademark Office.

Sec. 7236. Technology Administration.

Sec. 7237. Reorganization of the Bureau of the Census.

Sec. 7238. Reorganization of the Bureau of Economic Analysis.

Sec. 7239. Terminated functions of NTIA.

Sec. 7240. Transfer of Spectrum Management functions.

Sec. 7241. National Oceanic and Atmospheric Administration.

Sec. 7242. Miscellaneous abolishments.

Sec. 7243. Effective date.

Sec. 7244. Sense of Congress regarding user fees.

CHAPTER 3—MISCELLANEOUS PROVISIONS

Sec. 7251. References.

Sec. 7252. Exercise of authorities.

Sec. 7253. Savings provisions.

Sec. 7254. Transfer of assets.

Sec. 7255. Delegation and assignment.

Sec. 7256. Authority of Administrator with respect to functions transferred.

Sec. 7257. Proposed changes in law.

Sec. 7258. Certain vesting of functions considered transfers.

Sec. 7259. Definitions.

Sec. 7260. Limitation on annual expenditures for continued functions.

Subtitle D—Banking and Insurance Reforms

CHAPTER 1—BANKING EXAMINATION FEES

Sec. 7301. Bank examination fees.

SUBCHAPTER A—FEDERAL BANKING AGENCY

Sec. 7311. Establishment.

Sec. 7312. Management.

Sec. 7313. Powers and duties.

Sec. 7314. Technical and conforming amendments relating to transfers of functions.

SUBCHAPTER B—ABOLITION OF FEDERAL BANKING AGENCIES

Sec. 7321. Office of comptroller of the currency and position of comptroller of

the currency abolished.

Sec. 7322. Office of Thrift Supervision and position of Director of the Office

of Thrift Supervision abolished.

Sec. 7323. Savings provisions.

Sec. 7324. References in Federal law to Federal Banking Agencies.

SUBCHAPTER C—SECTION 235 MORTGAGE REFINANCING

Sec. 7325. Section 235 mortgage refinancing.

Sec. 7326. Penalty for early redemption of savings bonds.
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Sec. 7327. One dollar coins.

Sec. 7328. Ceasing issuance of one dollar notes.

Subtitle E—Specific Commerce and Housing Program Reforms

Sec. 7401. Obligation limitation for Minority Business Development Agency.

Sec. 7402. United States travel and tourism administration.

Sec. 7403. Export Administration.

Sec. 7404. Assistance for public telecommunications facilities and telecommunications demonstrations.

Sec. 7405. Abolishment of advanced technology program.

Sec. 7406. Fees for Federal and federally sponsored enterprises.

Sec. 7407. Extension of spectrum auction authority of the Federal Communications Commission.

Sec. 7408. Bureau of Census.

Sec. 7409. Copyright Office.

TITLE VIII—TRANSPORTATION

Subtitle A—Air Transportation Program Reform

Sec. 8001. Air Traffic Control Corporation.

Sec. 8002. Obligation limitation for airport improvement program.

Sec. 8003. Termination of essential air service program.

Sec. 8004. Obligation limitation for FAA operations.

Sec. 8005. Repeal of authorizations for the airway science program, collegiate

training initiative, and air carrier maintenance technician

training facility grant program.

Sec. 8006. Fees for use of slots at high density airports.

Subtitle B—Highway Transportation Program Reform

Sec. 8101. Termination of Interstate Commerce Commission.

Sec. 8102. Customs tonnage fees.

Sec. 8103. Fees for operation of foreign repair stations.

Sec. 8104. Elimination of funding for highway demonstration projects.

Subtitle C—Rail Transportation Program Reform

Sec. 8201. Amtrak.

Sec. 8202. Elimination of funding for maglev prototype development program.

Sec. 8203. Local rail freight assistance.

Sec. 8204. Reduction and modification of boating safety grants.

Subtitle D—Miscellaneous Transportation Program Reform

Sec. 8301. Federal aid for mass transit.

Subtitle E—Administrative Reform

Sec. 8401. Reduction in overhead expenses of Department of Transportation.

TITLE IX—COMMUNITY AND REGIONAL DEVELOPMENT

Subtitle A—Housing Program Reforms

Sec. 9001. Termination of expansion of rural rental housing program.

Subtitle B—Community and Regional Development Program Reforms
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Sec. 9101. Elimination of funding for environmental research programs of Tennessee Valley Authority.

Sec. 9102. Elimination of CDBG program.

Sec. 9103. Termination of Economic Development Administration.

Sec. 9104. Termination of Appalachian Regional Commission.

Sec. 9105. Elimination of rural development loan and grant programs.

Subtitle C—Administrative Reforms

Sec. 9201. Operation of Indian programs.

Sec. 9202. Bureau of Indian affairs construction.

TITLE X—EDUCATION AND TRAINING

Subtitle A—Job Training Reform

Sec. 10001. Short title.

CHAPTER 1—BLOCK GRANTS TO STATES

Sec. 10011. Statement of purpose.

Sec. 10012. Authorization.

Sec. 10013. Allocation.

Sec. 10014. Application.

Sec. 10015. Use of amounts.

Sec. 10016. Reports.

Sec. 10017. Reduction or termination of payments under grant.

Sec. 10018. Definitions.

Sec. 10019. Transfer of funds.

Sec. 10020. Authorization of appropriations.

CHAPTER 2—CONSOLIDATION AND REPEAL OF CERTAIN FEDERAL

EMPLOYMENT ASSISTANCE PROGRAMS

PART 1—CONSOLIDATION OF PROGRAMS

Sec. 10031. Certain community-based projects regarding health care for the

homeless; conforming amendment regarding Public Law 102–

321.

Sec. 10032. Certain employment-related programs under Rehabilitation Act of

1973.

PART 2—REPEAL OF PROGRAMS

Sec. 10041. Higher education for students from migrant and seasonal farmworker families.

Sec. 10042. Certain veterans programs.

Sec. 10043. Foster grandparent and senior companion programs and programs

under Older Americans Act of 1965.

Sec. 10044. Job Training Partnership Act.

Sec. 10045. Appalachian vocational and other education facilities and operations program.

Sec. 10046. Targeted jobs credit.

Sec. 10047. Service Members Occupational Conversion and Training Act of

1992.

Sec. 10048. Adult education programs.

Sec. 10049. Vocational education programs.

Sec. 10050. National literacy programs.
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Sec. 10051. Indian employment, training and related services demonstration

program.

Sec. 10052. Special provisions relating to Indian tribes.

Sec. 10053. Literacy corps.

Sec. 10054. Miscellaneous repealers.

Subtitle B—Department Reform

CHAPTER 1—SHORT TITLE; FINDINGS; AND PURPOSE

Sec. 10101. Short title.

Sec. 10102. Findings.

Sec. 10103. Purposes.

CHAPTER 2—ABOLITION OF DEPARTMENT OF EDUCATION

SUBCHAPTER A—TRANSFER OF FUNCTIONS TO OFFICE IN DEPARTMENT OF

HEALTH AND HUMAN SERVICES

Sec. 10111. Abolition of Department.

Sec. 10112. Establishment and sunset of office of economic opportunities in the

Department of Health and Human Services, and transfer of

functions.

Sec. 10113. Principal officers.

Sec. 10114. Continuation of service of Department officer.

Sec. 10115. Reorganization.

Sec. 10116. Plan for winding up affairs.

Sec. 10117. GAO report.

Sec. 10118. Conforming amendments.

Sec. 10119. Effective date.

Sec. 10120. Limitation on expenditures.

CHAPTER 3—EDUCATION PROGRAMS

SUBCHAPTER A—ELEMENTARY AND SECONDARY EDUCATION

PART 1—ELEMENTARY AND SECONDARY EDUCATION BLOCK GRANT

PROGRAM

Sec. 10131. Goals of elementary and secondary education block grant program.

Sec. 10132. Program authorized.

Sec. 10133. State eligibility.

Sec. 10134. General State requirements.

Sec. 10135. Amount of State allotment.

Sec. 10136. Local fiscal accountability.

Sec. 10137. Participation of children enrolled in private schools.

Sec. 10138. Definitions.

Sec. 10139. Authorization of appropriations.

PART 2—OTHER ELEMENTARY AND SECONDARY EDUCATION PROGRAMS

Sec. 10141. Amendments and repeals of certain education provisions.

SUBCHAPTER II—CONFORMING AMENDMENTS TO THE INDIVIDUALS WITH

DISABILITIES EDUCATION ACT

Sec. 10142. Amendments to provisions referencing Secretary of Education and

Department of Education.

Sec. 10143. Amendments to definitions.
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Sec. 10144. Transfer of administering authority to Office of Economic Opportunities.

Sec. 10145. Outreach services for certain institutions of higher education.

SUBCHAPTER III—HIGHER EDUCATION PROGRAMS

PART 1—ELIMINATION AND REDUCTION OF PROGRAMS

Sec. 10151. Repeal of higher education laws.

Sec. 10152. Amendment to the Federal Credit Reform Act.

Sec. 10153. Sale of FDSL loan portfolios.

Sec. 10154. Student loan program; statement of policy.

Sec. 10155. Elimination of in-school interest subsidies.

PART 2—HIGHER EDUCATION BLOCK GRANT

Sec. 10161. Purpose.

Sec. 10162. Distribution of funds.

Sec. 10163. State assurances.

Sec. 10164. Use of funds.

Sec. 10165. Public disclosure.

Sec. 10166. Authorization of appropriations.

Sec. 10167. Definitions.

SUBCHAPTER IV—MISCELLANEOUS PROVISIONS

Sec. 10171. Construction.

Sec. 10172. Regulations.

Sec. 10173. Consolidated application.

Sec. 10174. Appropriations.

Sec. 10175. Federal civil rights.

CHAPTER 4—GENERAL PROVISIONS

Sec. 10181. References.

Sec. 10182. Exercise of authorities.

Sec. 10183. Savings provisions.

Sec. 10184. Transfer of assets.

Sec. 10185. Delegation and assignment.

Sec. 10186. Authority of Office of Management and Budget with respect to

functions transferred.

Sec. 10187. Proposed changes in law.

Sec. 10188. Definition of transfer.

Sec. 10189. Definitions.

CHAPTER 5—STATEMENTS OF POLICY

Sec. 10191. Statement of policy regarding Federal education funding.

Sec. 10192. Statement of policy regarding job training programs.

Sec. 10193. Statement of policy regarding Indian education.

Subtitle C—Elementary and Secondary Education Reforms

Sec. 10201. Elimination of impact aid.

Sec. 10202. Eisenhower Regional Mathematics and Science Education Consortia.

Sec. 10203. Limitation on authorizations of appropriations for the Individuals

with Disabilities Education Act.
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Sec. 10204. Education improvement.

Sec. 10205. Innovative education program strategies.

Sec. 10206. Safe and drug-free schools and communities.

Sec. 10207. Education infrastructure.

Sec. 10208. Inexpensive book distribution.

Sec. 10209. Arts in education.

Sec. 10210. Christa McAuliffe scholarships.

Sec. 10211. Magnet schools assistance.

Sec. 10212. Education for homeless children and youth.

Sec. 10213. Women’s educational equity.

Sec. 10214. Training and advisory services.

Sec. 10215. Dropout demonstrations.

Sec. 10216. Training in early childhood education and violence counseling.

Sec. 10217. Charter schools.

Sec. 10218. Authorized activities.

Sec. 10219. Professional development demonstration project.

Sec. 10220. Immigrant education.

Sec. 10221. Education for native Hawaiians.

Sec. 10222. Programs of national significance.

Sec. 10223. Law-related education.

Sec. 10224. Public library construction.

Sec. 10225. National assessment of educational progress.

Subtitle D—Community Program Reforms

Sec. 10301. Repeal of the National Foundation on the Arts and the Humanities Act of 1965.

Sec. 10302. Repeal of National and Community Service Act of 1990, Domestic

Volunteer Service Act of 1973, and related provisions.

Sec. 10303. Repeal of the Museum Services Act.

Sec. 10304. Terminate Federal funding for the John F. Kennedy Center for

the Performing Arts.

Sec. 10305. Repeal of the Older Americans Community Service Employment

Act.

Sec. 10306. Consolidation of certain social service programs.

Sec. 10307. Amendments to the Older Americans Act of 1965.

Sec. 10308. Termination of funding for the Corporation for Public Broadcasting

Subtitle E—Employment Program Reform

Sec. 10401. Termination of general trade adjustment assistance.

Sec. 10402. Extension to all States of rule providing for reduction of social security disability insurance benefits upon receipt of workers’

compensation benefits.

Sec. 10403. Service Contract Act of 1965.

Sec. 10404. Reduction in overhead expenses of Department of Labor.

TITLE XI—HEALTH

Subtitle A—Administrative Reform

Sec. 11001. Reduction in overhead expenses of Department of Health and

Human Services.

Subtitle B—University Research Regarding Health and Other Matters
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•HR 1923 IH

Sec. 11101. Federally-supported University research; reduction in rates for indirect costs of research.

Sec. 11102. Reduction in budget of National Institutes of Health.

Sec. 11103. Reduction in health professions budget of health resources and

services administration.

Sec. 11104. Closure of Uniformed Services University of the Health Sciences.

Subtitle C—Medicaid Reforms

Sec. 11201. Reduction in Federal payments for disproportionate share hospitals.

Sec. 11202. Imposition of State limits on approved nursing facility beds.

Sec. 11203. Reducing to 50 percent the matching rate for administrative costs

under the medicaid program.

Subtitle D—Reforms in Health Care Block Grants

Sec. 11301. Consolidation of certain block grants.

Sec. 11302. Reduction in budget for immunization programs; prohibition regarding warehousing of vaccines.

Subtitle E—Health Care Program Reforms

Sec. 11401. Reduction in budget of agency for health care policy and research.

Sec. 11402. Reduction in budget for programs to treat substance abuse.

Sec. 11403. Abolition of office of the Surgeon General of the Public Health

Service

Subtitle F—Federal Employee Health Care Reform

Sec. 11501. Government contribution to the Federal employees health benefits

program.

TITLE XII—MEDICARE

Subtitle A—Copayment Reform

Sec. 12001. Imposition of 20 percent coinsurance on home health services.

Sec. 12002. Imposition of 20 percent coinsurance on clinical laboratory services.

Subtitle B—Part B Premium

Sec. 12101. Relating medicare part B premium to income for certain high income individuals.

Sec. 12102. Setting the part B premium at 25 percent of program expenditures

permanently.

Subtitle C—Part A Deductible

Sec. 12201. Increase in medicare hospital insurance deductible for certain highincome individuals.

Subtitle D—Medicare Payments to Hospitals

Sec. 12301. Elimination of payments to hospitals for enrollees’ bad debts.

Sec. 12302. Reduction in payments for indirect costs of medical education.

Subtitle E—Selected Presidential Medicare Reforms
17

•HR 1923 IH

Sec. 12401. Expansion of centers of excellence.

Sec. 12402. Application of competitive acquisition process for part B items and

services.

Sec. 12403. Application of competitive acquisition procedures for laboratory

services.

Sec. 12404. Medicare secondary payer changes.

Sec. 12405. Limitations on payment for physicians’ services furnished by highcost hospital medical staffs.

Sec. 12406. Reduction in update for inpatient hospital services.

Sec. 12407. Establishment of cumulative expenditure goals for physician services.

Sec. 12408. Extension of freeze on updates to routine service costs of skilled

nursing facilities.

Sec. 12409. Reduction in routine cost limits for home health services.

Sec. 12410. Elimination of formula-driven overpayments for certain outpatient

hospital services.

TITLE XIII—INCOME SECURITY

Subtitle A—Administrative Reform

Sec. 13001. Elimination of Department of Housing and Urban Development.

Subtitle B—Housing Program Reforms

Sec. 13101. Elimination of operating subsidies for vacant public housing.

Sec. 13102. Increase of tenant contributions.

Sec. 13103. Reduction of PHA administrative fees for section 8 rental assistance program.

Subtitle C—Supplemental Security Income Reforms

Sec. 13201. More timely reporting of admissions of SSI recipients to nursing

homes; $30 limit on SSI benefits for recipients in nursing

homes if medicaid pays most of their care costs.

Sec. 13202. Reduced unearned income exclusion under the supplemental security income program.

Sec. 13203. Recovery of SSI overpayments from social security benefits.

Subtitle D—Civil Service Reforms

Sec. 13301. Increase in retirement age under FERS to 65.

Sec. 13302. Deferral until age 62 of cost-of-living adjustments for military retirees who first entered military service on or after January 1,

1996.

Sec. 13303. Provision relating to government contributions to the Thrift Savings Plan.

Subtitle E—Assistance Program Reforms

Sec. 13401. Low-income home energy assistance.

Sec. 13402. Additional requirements for unemployment benefits.

Sec. 13403. Denial of unemployment benefits to individuals who voluntarily

leave military service.

Sec. 13404. Increase in variable rate premium charged by the pension benefit

guaranty corporation to single-employer plans.
18

•HR 1923 IH

TITLE XIV—PERSONAL RESPONSIBILITY AND FAMILY

PRESERVATION

Sec. 14001. Short title.

Sec. 14002. Table of contents.

Subtitle A—Block Grants for Temporary Assistance for Needy Families

Sec. 14100. Sense of the Congress.

Sec. 14101. Block grants to States.

Sec. 14102. Report on data processing.

Sec. 14103. Transfers.

Sec. 14104. Conforming amendments to the Social Security Act.

Sec. 14105. Conforming amendments to other laws.

Sec. 14106. Continued application of current standards under medicaid program.

Sec. 14107. Effective date.

Subtitle B—Child Protection Block Grant Program

Sec. 14201. Establishment of program.

Sec. 14202. Conforming amendments.

Sec. 14203. Continued application of current standards under medicaid program.

Sec. 14204. Effective date.

Sec. 14205. Sense of the Congress regarding timely adoption of children.

Subtitle C—Block Grants for Child Care and for Nutrition Assistance

CHAPTER 1—CHILD CARE BLOCK GRANTS

Sec. 14301. Amendments to the Child Care and Development Block Grant Act

of 1990.

Sec. 14302. Repeal of child care assistance authorized by Acts other than the

Social Security Act.

CHAPTER 2—FAMILY AND SCHOOL-BASED NUTRITION BLOCK GRANTS

SUBCHAPTER A—FAMILY NUTRITION BLOCK GRANT PROGRAM

Sec. 14321. Amendment to Child Nutrition Act of 1966.

SUBCHAPTER B—SCHOOL-BASED NUTRITION BLOCK GRANT PROGRAM

Sec. 14341. Amendment to National School Lunch Act.

SUBCHAPTER C—MISCELLANEOUS PROVISIONS

Sec. 14361. Repealers.

CHAPTER 3—OTHER REPEALERS AND CONFORMING AMENDMENTS

Sec. 14371. Amendments to laws relating to child protection block grant.

CHAPTER 4—RELATED PROVISIONS

Sec. 14381. Requirement that data relating to the incidence of poverty in the

United States be published at least every 2 years.

Sec. 14382. Data on program participation and outcomes.
19

•HR 1923 IH

CHAPTER 5—GENERAL EFFECTIVE DATE; PRESERVATION OF ACTIONS,

OBLIGATIONS, AND RIGHTS

Sec. 14391. Effective date.

Sec. 14392. Application of amendments and repealers.

Subtitle D—Restricting Welfare and Public Benefits for Aliens

Sec. 14400. Statements of national policy concerning welfare and immigration.

CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS PROGRAMS

Sec. 14401. Ineligibility of illegal aliens for certain public benefits programs.

Sec. 14402. Ineligibility of nonimmigrants for certain public benefits programs.

Sec. 14403. Limited eligibility of immigrants for 5 specified Federal public benefits programs.

Sec. 14404. Notification.

CHAPTER 2—ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS

PROGRAMS

Sec. 14411. Ineligibility of illegal aliens for State and local public benefits programs.

Sec. 14412. Ineligibility of nonimmigrants for State and local public benefits

programs.

Sec. 14413. State authority to limit eligibility of immigrants for State and local

means-tested public benefits programs.

CHAPTER 3—ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT

Sec. 14421. Attribution of sponsor’s income and resources to family-sponsored

immigrants.

Sec. 14422. Requirements for sponsor’s affidavit of support.

CHAPTER 4—GENERAL PROVISIONS

Sec. 14431. Definitions.

Sec. 14432. Construction.

CHAPTER 5—CONFORMING AMENDMENTS

Sec. 14441. Conforming amendments relating to assisted housing.

Subtitle E—Food Stamp Reform and Commodity Distribution

Sec. 14501. Short title.

CHAPTER 1—COMMODITY DISTRIBUTION PROVISIONS

Sec. 14511. Short title.

Sec. 14512. Availability of commodities.

Sec. 14513. State, local and private supplementation of commodities.

Sec. 14514. State plan.

Sec. 14515. Allocation of commodities to States.

Sec. 14516. Priority system for State distribution of commodities.

Sec. 14517. Initial processing costs.

Sec. 14518. Assurances; anticipated use.

Sec. 14519. Authorization of appropriations.

Sec. 14520. Commodity supplemental food program.
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•HR 1923 IH

Sec. 14521. Commodities not income.

Sec. 14522. Prohibition against certain State charges.

Sec. 14523. Definitions.

Sec. 14524. Regulations.

Sec. 14525. Finality of determinations.

Sec. 14526. Sale of commodities prohibited.

Sec. 14527. Settlement and adjustment of claims.

Sec. 14528. Repealers; amendments.

CHAPTER 2—CONSOLIDATING FOOD ASSISTANCE PROGRAMS

Sec. 14541. Food stamp block grant program.

Sec. 14542. Availability of Federal coupon system to States.

Sec. 14543. Definitions.

Sec. 14544. Repealer.

CHAPTER 3—EFFECTIVE DATES AND MISCELLANEOUS PROVISIONS

Sec. 14591. Effective date; application of repealer.

Sec. 14592. Sense of the Congress.

Sec. 14593. Deficit reduction.

Subtitle F—Supplemental Security Income

Sec. 14601. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics.

Sec. 14602. Supplemental security income benefits for disabled children.

Sec. 14603. Examination of mental listings used to determine eligibility of children for SSI benefits by reason of disability.

Sec. 14604. Limitation on payments to Puerto Rico, the Virgin Islands, and

Guam under programs of aid to the aged, blind, or disabled.

Sec. 14605. Repeal of maintenance of effort requirements applicable to optional

State programs for supplementation of SSI benefits.

Sec. 14606. Denial of SSI benefits for 10 years to individuals found to have

fraudulently misrepresented residence in order to obtain benefits simultaneously in 2 or more States.

Sec. 14607. Denial of SSI benefits for fugitive felons and probation and parole

violators.

Sec. 14608. Reapplication requirements for adults receiving SSI benefits by

reason of disability.

Sec. 14609. Striking of restrictions regarding determination of ineligibility.

Sec. 14610. Narrowing of SSI eligibility on basis of mental impairments.

Subtitle G—Child Support

Sec. 14700. References.

CHAPTER 1—ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS

Sec. 14701. State obligation to provide child support enforcement services.

Sec. 14702. Distribution of child support collections.

Sec. 14703. Privacy safeguards.

CHAPTER 2—LOCATE AND CASE TRACKING

Sec. 14711. State case registry.

Sec. 14712. Collection and disbursement of support payments.

Sec. 14713. State directory of new hires.
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Sec. 14714. Amendments concerning income withholding.

Sec. 14715. Locator information from interstate networks.

Sec. 14716. Expansion of the Federal parent locator service.

Sec. 14717. Collection and use of social security numbers for use in child support enforcement.

CHAPTER 3—STREAMLINING AND UNIFORMITY OF PROCEDURES

Sec. 14721. Adoption of uniform State laws.

Sec. 14722. Improvements to full faith and credit for child support orders.

Sec. 14723. Administrative enforcement in interstate cases.

Sec. 14724. Use of forms in interstate enforcement.

Sec. 14725. State laws providing expedited procedures.

CHAPTER 4—PATERNITY ESTABLISHMENT

Sec. 14731. State laws concerning paternity establishment.

Sec. 14732. Outreach for voluntary paternity establishment.

Sec. 14733. Cooperation by applicants for and recipients of temporary family

assistance.

CHAPTER 5—PROGRAM ADMINISTRATION AND FUNDING

Sec. 14741. Federal matching payments.

Sec. 14742. Performance-based incentives and penalties.

Sec. 14743. Federal and State reviews and audits.

Sec. 14744. Required reporting procedures.

Sec. 14745. Automated data processing requirements.

Sec. 14746. Technical assistance.

Sec. 14747. Reports and data collection by the Secretary.

CHAPTER 6—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

Sec. 14751. Simplified process for review and adjustment of child support orders.

Sec. 14752. Furnishing consumer reports for certain purposes relating to child

support.

CHAPTER 7—ENFORCEMENT OF SUPPORT ORDERS

Sec. 14761. Federal income tax refund offset.

Sec. 14762. Authority to collect support from Federal employees.

Sec. 14763. Enforcement of child support obligations of members of the Armed

Forces.

Sec. 14764. Voiding of fraudulent transfers.

Sec. 14765. Sense of the Congress that States should suspend drivers’, business, and occupational licenses of persons owing past-due child

support.

Sec. 14766. Work requirement for persons owing past-due child support.

Sec. 14767. Definition of support order.

Sec. 14768. Liens.

Sec. 14769. State law authorizing suspension of licenses.

CHAPTER 8—MEDICAL SUPPORT

Sec. 14771. Technical correction to ERISA definition of medical child support

order.
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•HR 1923 IH

CHAPTER 9—ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NONRESIDENTIAL PARENTS

Sec. 14781. Grants to States for access and visitation programs.

CHAPTER 10—EFFECT OF ENACTMENT

Sec. 14791. Effective dates.

CHAPTER 11—MISCELLANEOUS PROVISIONS

Sec. 14801. Scoring.

Sec. 14802. Provisions to encourage electronic benefit transfer systems.

TITLE XV—VETERANS’ BENEFITS AND SERVICES

Subtitle A—Administrative Reforms

Sec. 15001. Reduction in overhead expenses of Department of Veterans Affairs.

Subtitle B—Extension of Certain Veterans Programs

Sec. 15011. Permanent extension of authority for copayment charge for medications.

Sec. 15012. Permanent extension of authority for medical care cost recovery.

Sec. 15013. Permanent extension of authority for income verification procedures.

Sec. 15014. Permanent extension of authority for procedures applicable to liquidation sales on defaulted home loans.

Subtitle C—Home Loan Guarantee Program Reforms

Sec. 15021. Restriction on use of multiple VA housing loan guaranty benefits.

Sec. 15022. Extensions of certain authorities relating to housing loans.

Subtitle D—Medical Program Reforms

Sec. 15031. More efficient management and delivery of veterans health care.

Sec. 15032. Closure and conversion of inefficient or underused facilities in veterans’ hospitals.

Sec. 15033. Reduction in expenditures for major construction.

Subtitle E—Other Veterans Programs Reforms

Sec. 15041. Elimination of certain sunset dates.

Sec. 15042. Third-party reimbursement.

TITLE XVI—ADMINISTRATION OF JUSTICE

Subtitle A—Authorization of Appropriations

CHAPTER 1—DEPARTMENT OF JUSTICE

Sec. 16001. Authorization of appropriations for the Department of Justice.

Sec. 16002. Reduction in overhead expenses of Department of Justice.

CHAPTER 2—OTHER LAW ENFORCEMENT ENTITIES

Sec. 16011. Authorization of appropriations for the United States Customs

Service.
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•HR 1923 IH

Sec. 16012. Authorization of appropriations for the United States Secret Service.

Sec. 16013. Authorization of appropriations for the Bureau of Alcohol, Tobacco

and Firearms.

Sec. 16014. Authorization of appropriations for defender services.

CHAPTER 3—ADMINISTRATIVE REFORMS

Sec. 16021. Improvement of U.S. Marshals Service.

Subtitle B—Prison Reforms

Sec. 16201. Privatization of correctional institutions.

Sec. 16202. Payment of public safety officers.

Subtitle C—Justice Assistance Program Reforms

Sec. 16301. Legal Services Corporation.

Sec. 16302. Surcharge on debts collected by the United States.

Sec. 16303. Terminate Bureau of Justice Assistance.

Sec. 16304. Terminate State Justice Institute.

Subtitle D—Federal Bureau of Investigation Reforms

Sec. 16401. Rescission of funds for FBI fingerprint laboratory in West Virginia.

Subtitle E—Other Justice Program Reforms

Sec. 16501. Authorization of appropriations for the Equal Employment Opportunity Commission.

Sec. 16502. Harbor maintenance fees.

TITLE XVII—GENERAL GOVERNMENT

Subtitle A—Administrave Reforms

Sec. 17001. Reduction in overhead expenses of certain foreign operations activities.

Sec. 17002. Reduction in overhead expenses of Department of the Treasury.

Sec. 17003. Reduction in overhead expenses of Office of Personnel Management.

Sec. 17004. Reduction in overhead expenses of other independent agencies.

Sec. 17005. Termination of Advisory Commission on Intergovernmental Relations.

Sec. 17006. Administrative Conference of the United States.

Sec. 17007. Termination of miscellaneous advisory committees.

Sec. 17008. Termination of Federal information centers.

Subtitle B—Legislative Branch Reductions

Sec. 17101. Reduction in overhead expenses of Executive Office of the President.

Sec. 17102. Formula for determining official mail allowance.

Sec. 17103. Transfer of certain funds prohibited.

Sec. 17104. Temporary suspension of automatic pay adjustments for Members

of Congress.

Subtitle C—Executive Branch Reductions
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Sec. 17201. Reduction in overhead expenses of Executive Office of the President.

Sec. 17202. SES annual leave accumulation.

Sec. 17203. Limitation relating to political appointees.

Subtitle D—Specific Program Reforms

Sec. 17301. Decrease in Presidential Election Campaign Fund check-off.

Sec. 17302. Moratorium on construction and acquisition of new Federal buildings.

Sec. 17303. Termination of annual direct assistance to Northern Mariana Islands.

Sec. 17304. Government information dissemination and printing improvement.

Sec. 17305. Repeal of transitional appropriations authorization for the post office.

1 SEC. 2. EFFECTIVE DATE.

2 Except as otherwise provided, this Act, and the

3 amendments made by this Act, shall take effect on Octo4 ber 1, 1995.

5 TITLE I—NATIONAL DEFENSE

6 Subtitle A—Restore Defense

7 Spending

8 SEC. 1001. CONFORMANCE WITH BOTTOM UP REVIEW.

9 It is the intent of Congress that funding within the

10 national defense budget function for military readiness

11 programs, quality-of-life programs, and force moderniza12 tion programs be increased over the level proposed in the

13 most recent future-years defense plan of the Department

14 of Defense by $60,000,000,000, of which—

15 (1) $37,000,000,000 shall be derived by in16 creasing the total amount for the national defense

17 budget function for fiscal years 1996 through 2000

18 ($25,000,000,000 of which has already been pro-
25

•HR 1923 IH

1 posed by the President in defense budget adjust2 ments announced in November 1995); and

3 (2) $23,000,000,000 shall be derived as an off4 set from the reductions in defense programs pro5 vided in the other provisions of this title.

6 Subtitle B—Rescission of Funding

7 for Programs Not Requested by

8 the Department of Defense

9 SEC. 1111. RESCISSION OF FUNDS FOR GENERAL PURPOSE

10 BOMB PROGRAM.

11 Of the funds made available to the Department of

12 Defense in appropriation Acts for fiscal year 1995 and

13 prior fiscal years, the unobligated balance on the date of

14 the enactment of this Act of the funds provided for the

15 general purpose bomb program is rescinded.

16 SEC. 1112. RESCISSION OF FUNDS FOR C–12F AIRCRAFT

17 PROGRAM.

18 Of the funds made available to the Department of

19 Defense in appropriation Acts for fiscal year 1995 and

20 prior fiscal years, the unobligated balance on the date of

21 the enactment of this Act of the funds provided for the

22 C–12F aircraft program is rescinded.
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•HR 1923 IH

1 SEC. 1113. RESCISSION OF FUNDS FOR P–3 UPGRADE PRO2 GRAM.

3 Of the funds made available to the Department of

4 Defense in appropriation Acts for fiscal year 1995 and

5 prior fiscal years, the unobligated balance on the date of

6 the enactment of this Act of the funds provided for the

7 P–3 upgrade program is rescinded.

8 Subtitle C—Limitations on Fund9 ing for Certain Programs for

10 Fiscal Year 1996

11 SEC. 1211. ENVIRONMENTAL DEFENSE FUND.

12 The amount appropriated for fiscal year 1996 for en13 vironmental defense programs for the Department of De14 fense may not exceed 50 percent of the amount appro15 priated for such programs for fiscal year 1995.

16 SEC. 1212. FORMER SOVIET UNION THREAT REDUCTION.

17 The amount appropriated for fiscal year 1996 for the

18 Department of Defense for cooperative threat reduction

19 programs with states of the former Soviet Union may not

20 exceed 50 percent of the amount appropriated for such

21 programs for fiscal year 1995.
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1 Subtitle D—Department of Defense

2 Administrative Reforms

3 SEC. 1311. MILITARY SEVERANCE PAY.

4 (a) CHANGE IN PAYMENT FORMULA.—Paragraph (1)

5 of section 1174 of title 10, United States Code, is amend6 ed—

7 (1) by striking out paragraph (1) of subsection

8 (d) and inserting in lieu thereof the following:

9 ‘‘(1) the product of (A) the member’s years of

10 active service, and (B) the amount equal to 12 times

11 the member’s basic military compensation at the

12 time of the member’s discharge or release from ac13 tive duty, divided by 52; or’’; and

14 (2) by adding at the end the following new sub15 section:

16 ‘‘(j) BASIC MILITARY COMPENSATION.—In this sec17 tion, the term ‘basic military compensation’ means the

18 sum of the following elements of compensation for a mem19 ber of the uniformed services:

20 ‘‘(1) Monthly basic pay payable to the member

21 based upon the member’s pay grade and years of

22 service.

23 ‘‘(2) Monthly basic allowance for quarters appli24 cable to the member’s pay grade and dependent

25 status.
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•HR 1923 IH

1 ‘‘(3) Monthly basic allowance for subsistence

2 applicable to the member’s pay grade and dependent

3 status.’’.

4 (b) EFFECTIVE DATE.—The amendments made by

5 subsection (a) shall apply with respect to persons who be6 come entitled to separation pay under section 1174 of title

7 10, United States Code, on or after the date of the enact8 ment of this Act.

9 SEC. 1312. RESTRICTION ON ELIGIBILITY FOR AVIATION

10 CAREER INCENTIVE PAY.

11 (a) ELIMINATION OF CONTINUOUS MONTHLY INCEN12 TIVE PAY.—Section 301a of title 37, United States Code,

13 is amended—

14 (1) in subsection (a)—

15 (A) by striking paragraphs (3), (4), and

16 (5); and

17 (B) by redesignating paragraph (6) as

18 paragraph (3); and

19 (2) by striking subsection (f).

20 (b) APPLICATION OF AMENDMENTS.—The amend21 ments made by this section shall apply beginning with the

22 first day of the first month after the date of the enactment

23 of this Act.
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1 SEC. 1313. CANCELLATION OF LEARNING RESOURCE CEN2 TER PROGRAM.

3 Effective October 1, 1995, the Secretary of Defense

4 shall cancel the learning resource center program of the

5 Department of Defense relating to federally funded train6 ing for military personnel and civilian employees of the

7 Department.

8 Subtitle E—Department of Defense

9 Program Reforms

10 SEC. 1411. INTELLIGENCE COMMUNITY REORGANIZATION

11 AND PERSONNEL REDUCTION.

12 (a) INTELLIGENCE COMMUNITY REORGANIZATION.—

13 The President shall reorganize the United States Intel14 ligence Community to reduce redundancy and overlapping

15 jurisdiction of intelligence components and to centralize

16 (to the extent determined appropriate by the President)

17 responsibility and authority for intelligence activities.

18 (b) PERSONNEL REDUCTIONS.—(1) In implementing

19 the reorganization required by subsection (a), the Presi20 dent shall, for each of fiscal years 1996 through 2000,

21 reduce the total number of military and civilian personnel

22 employed by, or assigned or detailed to, elements of the

23 Intelligence Community by not less than 4 percent of the

24 baseline number specified in paragraph (2). The President

25 shall direct how such reductions are to be allocated among

26 the elements of the Intelligence Community.
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1 (2) For purposes of paragraph (1), the baseline num2 ber is the total number of military and civilian personnel

3 employed by, or assigned or detailed to, elements of the

4 Intelligence Community as of September 30, 1995.

5 (3) Reductions in personnel carried out pursuant to

6 this subsection for any fiscal year may also be counted

7 for that fiscal year for purposes of section 907(b) of Public

8 Law 101–510 (104 Stat. 1622).

9 (4) Functions and personnel may not be reassigned

10 in order to avoid, or reduce the effect of, the reductions

11 required by this subsection. Reductions pursuant to this

12 section in the number of members of the Armed Forces,

13 or the number of civilian personnel, in the Intelligence

14 Community shall be matched with corresponding reduc15 tions in the overall number of members of the Armed

16 Forces or of civilian employees of the Government, as the

17 case may be.

18 (c) INTELLIGENCE COMMUNITY DEFINED.—For pur19 poses of this section, the Intelligence Community consists

20 of those agencies (and elements of agencies) performing

21 intelligence and intelligence-related activities for which

22 funds were authorized to be appropriated in Public Law

23 103–359.
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1 SEC. 1412. LIMITATION ON PROCUREMENT OF SEAWOLF

2 SUBMARINE PROGRAM.

3 The Secretary of the Navy may not procure more

4 than one Seawolf (SSN–21) attack submarine. Any funds

5 appropriated before the date of the enactment of this Act

6 and available for procurement of a second or third Seawolf

7 submarine shall be available only for required contract ter8 mination costs (if any).

9 SEC. 1413. REQUIRED DISPOSAL OF EXCESS AND OBSOLETE

10 MATERIALS IN NATIONAL DEFENSE STOCK11 PILE.

12 (a) DISPOSAL REQUIRED.—Except as provided in

13 subsection (b), in order to reduce the quantities of mate14 rials in the National Defense Stockpile that are obsolete

15 for military purposes or in excess supply in the stockpile,

16 the President shall dispose of materials in the stockpile

17 in the quantities set forth in the following table:

Required Stockpile Disposals

Obsolete or excess material for disposal Unit Quantity

Aluminum Metal .................................................... ST ........................ 2,082

Aluminum Oxide, Abrasive Grain .......................... ST ........................ 50,904

Aluminum Oxide, Abrasive Grain, NSG ................ ST ........................ 118

Aluminum Oxide, Fused Crude ............................. ST ........................ 249,867

Analgesics ............................................................... ama LB ................ 68,703

Antimony ................................................................ ST ........................ 36,011

Antimony, NSG ...................................................... ST ........................ 7

Asbestos, Amosite .................................................. ST ........................ 34,005

Asbestos, Amosite, NSG ........................................ ST ........................ 1

Asbestos, Chrysotile ............................................... ST ........................ 9,787

Asbestos, Chrysotile, NSG ..................................... ST ........................ 916

Bauxite, Metal Grade, Jamaica & Surinam .......... LDT ..................... 17,757,337

Bauxite, Refractory ................................................ LCT ..................... 207,067

Beryl Ore ............................................................... ST ........................ 17,729

Beryllium Copper Master Alloy ............................. ST ........................ 7,387

Bismuth ................................................................. LB ........................ 1,825,955

Cadmium ................................................................ LB ........................ 6,328,570

Chromite, Chemical & Met. Grade Ore .................. SDT ..................... 1,551,262

Chromite, Chem. & Met. Grade Ore, NSG ............ SDT ..................... 217,441
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Required Stockpile Disposals—Continued

Obsolete or excess material for disposal Unit Quantity

Chromite, Refractory Grade Ore ........................... SDT ..................... 232,414

Chromium, Ferro ................................................... ST ........................ 475,526

Chromium, Ferro, NSG ......................................... ST ........................ 18,990

Cobalt ..................................................................... LBCO .................. 12,741,489

Columbium Group, NSG ........................................ LB Cb .................. 1,201,725

Copper .................................................................... ST ........................ 29,047

Copper, NSG .......................................................... ST ........................ 604

Diamonds, Industrial, Dies, Small ........................ KT ........................ 12,737

Fluorspar, Acid Grade ........................................... SDT ..................... 892,856

Fluorspar, Acid Grade, NSG ................................. SDT ..................... 899

Fluorspar, Metallurgical Grade, NSG ................... SDT ..................... 100,822

Germanium ............................................................ KG ....................... 715

Graphite, Natural, Ceylon, Amorphous Lump,

NSG.

ST ........................ 53

Graphite, Natural, Malagasy, Crystalline .............. ST ........................ 17,217

Graphite, Natural, Malagasy, Crystalline, NSG .... ST ........................ 9

Graphite, Natural, Other than Ceylon & Malagasy ST ........................ 1,933

Graphite, Natural, Other, NSG ............................. ST ........................ 870

Industrial Diamond Bort ....................................... KT ........................ 14,020,961

Industrial Diamond Stones .................................... KT ........................ 4,777,225

Iodine ..................................................................... LB ........................ 6,054,564

Iodine, NSG ........................................................... LB ........................ 1,342

Jewel bearings, NSG ............................................. PC ........................ 51,778,337

Lead ....................................................................... ST ........................ 601,043

Lead, NSG ............................................................. ST ........................ 10

Manganese Ore, Chem. & Met. Grades ................. SDT ..................... 1,853,453

Manganese Ore, Chem. & Met. Grades, NSG ....... SDT ..................... 882,969

Manganese, Battery Grade, Natural Ore .............. SDT ..................... 169,511

Manganese, Battery Grade, Natural Ore, NSG .... SDT ..................... 19,425

Manganese, Battery Grade, Synthetic Dioxide ...... SDT ..................... 3,011

Manganese, Ferro .................................................. ST ........................ 786,228

Manganese, Metal, Electrolytic .............................. ST ........................ 14,172

Mercury .................................................................. FL ........................ 156,853

Mercury, NSG ........................................................ FL ........................ 3

Mica, Muscovite Film, 1st & 2nd Qualities ........... LB ........................ 1,155,698

Mica, Muscovite Film, 1st & 2nd Qualities, NSG . LB ........................ 640

Mica, Muscovite Splittings ..................................... LB ........................ 14,355,260

Mica, Muscovite, Block, Stained & Better ............. LB ........................ 4,699,701

Mica, Muscovite, Block, Stained & Better, NSG ... LB ........................ 206,730

Mica, Phlogopite Block, NSG ................................ LB ........................ 114,027

Mica, Phlogopite Splittings .................................... LB ........................ 1,486,596

Nickel ..................................................................... ST ........................ 37,214

Platinum Group Metals, Iridium ........................... Tr Oz ................... 15,136

Platinum Group Metals, Palladium ....................... Tr Oz ................... 1,262,387

Platinum Group Metals, Palladium, NSG ............. Tr Oz ................... 2,214

Platinum Group Metals, Platinum ........................ Tr Oz ................... 199,247

Platinum Group Metals, Platinum, NSG .............. Tr Oz ................... 13,043

Quinidine ................................................................ Av Oz ................... 2,471,359

Quinidine, NSG ...................................................... Av Oz ................... 1,691

Quinine ................................................................... Av Oz ................... 2,770,115

Quinine, NSG ......................................................... Av Oz ................... 475,950

Rutile ..................................................................... ST ........................ 39,130

Rutile, NSG ........................................................... ST ........................ 56

Sapphire & Ruby .................................................... KT ........................ 16,305,502

Sebacic Acid ........................................................... LB ........................ 5,009,697

Silicon Carbide ....................................................... ST ........................ 45,080

Silver ...................................................................... Tr Oz ................... 83,951,492

Talc ........................................................................ ST ........................ 1,081

Tantalum Group, NSG .......................................... LB Ta .................. 1,152,259

Thorium Nitrate .................................................... LB ........................ 7,097,687

Tin ......................................................................... MT ....................... 165,780

Titanium Sponge, NSG ......................................... ST ........................ 10,866

Tungsten Group ..................................................... LB W ................... 27,530,759
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Required Stockpile Disposals—Continued

Obsolete or excess material for disposal Unit Quantity

Tungsten Group, NSG ........................................... LB W ................... 23,805,427

Vanadium Group .................................................... STV ...................... 721

Vegetable Tannin, Chestnut .................................. LT ........................ 11,692

Vegetable Tannin, Quebracho ................................ LT ........................ 121,642

Vegetable Tannin, Wattle ...................................... LT ........................ 14,997

Vegetable Tannin, Wattle, NSG ............................ LT ........................ 1

Zinc ........................................................................ ST ........................ 378,768

1 (b) EXCEPTION TO DISPOSAL REQUIREMENTS.—

2 Subsection (a) shall not apply with respect to the disposal

3 of a material set forth in the table in that subsection if

4 the President determines after the date of the enactment

5 of this Act that the material is once again needed for the

6 stockpile.

7 (c) SPECIAL RULE FOR SILVER.—The disposal of sil8 ver under subsection (a) may only occur in the form of

9 coins.

10 (d) TEN-YEAR PERIOD FOR DISPOSAL.—The Presi11 dent shall complete the disposals of materials required by

12 subsection (a) not later than September 30, 2005.

13 (e) EXISTING DISPOSAL PROCEDURES.—The dis14 posal of materials under subsection (a) shall be carried

15 out in the manner provided in section 6 of the Strategic

16 and Critical Materials Stock Piling Act (50 U.S.C.

17 98e(b)), including the requirement to avoid undue disrup18 tion of the usual markets of producers, processors, and

19 consumers of such materials.

20 (f) USE OF BARTER AUTHORIZED.—The President

21 is authorized to enter into barter arrangements to dispose
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1 of materials required to be disposed of under subsection

2 (a) in order to acquire strategic and critical materials re3 quired for the stockpile or to upgrade other strategic and

4 critical materials in the stockpile.

5 (g) DEPOSIT OF PROCEEDS FROM SALES.—All mon6 eys received from the sale of materials required to be dis7 posed of under subsection (a) shall be deposited in the

8 general fund of the Treasury for the purpose of reducing

9 the Federal budget deficit.

10 (h) EFFECT ON PREVIOUS DISPOSAL AUTHORI11 TIES.—All authorities of the President or the National

12 Defense Stockpile Manager in effect on the day before the

13 date of the enactment of this Act regarding the disposal

14 of specific quantities of materials in the stockpile are here15 by terminated. The following provisions of law are hereby

16 repealed:

17 (1) Section 3301(a) of the National Defense

18 Authorization Act for Fiscal Year 1994 (Public Law

19 103–160; 50 U.S.C. 98d note).

20 (2) Section 3302(a) of the National Defense

21 Authorization Act for Fiscal Year 1993 (Public Law

22 102–484; 50 U.S.C. 98d note).

23 (3) Section 3301 of the National Defense Au24 thorization Act for Fiscal Years 1992 and 1993

25 (Public Law 102-190; 50 U.S.C. 98d note).
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1 (i) DEFINITIONS.—For purposes of this section:

2 (1) The terms ‘‘National Defense Stockpile’’

3 and ‘‘stockpile’’ mean the stockpile provided for in

4 section 4 of the Strategic and Critical Materials

5 Stock Piling Act (50 U.S.C. 98c).

6 (2) The term ‘‘NSG’’, with regard to a material

7 specified in the table in subsection (a), means non8 specification grade material.

9 TITLE II—INTERNATIONAL

10 AFFAIRS

11 Subtitle A—Reduce Multilateral

12 Development Bank Credit As13 sistance

14 SEC. 2001. REDUCTION OF CREDIT ASSISTANCE BY THE EX15 PORT-IMPORT BANK OF THE UNITED STATES.

16 Section 6 of the Export-Import Bank Act of 1945

17 (12 U.S.C. 635e) is amended by adding at the end the

18 following:

19 ‘‘(c) LIMITATIONS ON AUTHORIZATION OF APPRO20 PRIATIONS.—For all costs authorized to be incurred under

21 this Act, there are authorized to be appropriated not to

22 exceed $415,000,000 for each of fiscal years 1996 through

23 2000.’’.
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1 SEC. 2002. TERMINATION OF CAPITAL CONTRIBUTIONS TO

2 CERTAIN MULTILATERAL DEVELOPMENT IN3 STITUTIONS.

4 Notwithstanding any other provision of law, funds of

5 the United States shall not be provided, directly or indi6 rectly, to the International Bank for Reconstruction and

7 Development, the Asian Development Bank, the African

8 Development Bank, the International Finance Corpora9 tion, the European Bank for Reconstruction and Develop10 ment, the Inter-American Development Bank, or the Afri11 can Development Fund.

12 SEC. 2003. DEOBLIGATION OF CERTAIN UNEXPENDED FOR13 EIGN ECONOMIC ASSISTANCE FUNDS.

14 (a) REQUIREMENT TO DEOBLIGATE.—Except as

15 provided in subsection (b) and in the second and third sen16 tences of section 617 of the Foreign Assistance Act of

17 1961 (22 U.S.C. 2367), at the beginning of each fiscal

18 year the President shall deobligate, and return to the

19 Treasury, any foreign economic assistance funds that, as

20 of the end of the preceding fiscal year, have been obligated

21 for a period of more than 3 years but have not been ex22 pended.

23 (b) EXCEPTIONS.—The President, on a case-by-case

24 basis, may waive the requirement of subsection (a) if the

25 President determines, and reports to the appropriate con26 gressional committees, that—
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1 (1) the funds are being used for a construction

2 project that requires more than 3 years to complete;

3 or

4 (2) the funds have not been expended because

5 of unforeseen circumstances, and those cir6 cumstances could not have been reasonably foreseen.

7 (c) COMMENTS BY AID INSPECTOR GENERAL ON

8 WAIVERS.—As soon as possible after submission of a re9 port pursuant to subsection (b), the Inspector General of

10 the United States Agency for International Development

11 shall submit to the appropriate congressional committees

12 such comments as the Inspector General considers appro13 priate with regard to the determination described in that

14 report.

15 (d) DEFINITIONS.—For purposes of this section, the

16 following definitions apply:

17 (1) APPROPRIATE CONGRESSIONAL COMMIT18 TEES.—The term ‘‘appropriate congressional com19 mittees’’ means the Committee on Foreign Affairs

20 and the Committee on Appropriations of the House

21 of Representatives and the Committee on Foreign

22 Relations and the Committee on Appropriations of

23 the Senate.

24 (2) ECONOMIC ASSISTANCE.—The term ‘‘eco25 nomic assistance’’ means—
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1 (A) assistance under chapter 1 of part I of

2 the Foreign Assistance Act of 1961 (relating to

3 development assistance) (22 U.S.C. 2151 et

4 seq.), chapter 10 of part I of that Act (relating

5 to the Development Fund for Africa) (22

6 U.S.C. 2293 et seq.), chapter 11 of part I of

7 that Act (relating to assistance for the inde8 pendent states of the former Soviet Union) (22

9 U.S.C. 2295 et seq.), or chapter 4 of part II of

10 that Act (relating to the economic support

11 fund) (22 U.S.C. 2346 et seq.);

12 (B) assistance under the ‘‘Multilateral As13 sistance Initiative for the Philippines’’; and

14 (C) assistance under the Support for East

15 European Democracy (SEED) Act of 1989 (22

16 U.S.C. 5401 et seq.).

17 SEC. 2004. REDUCTION IN CONTRIBUTION TO INTER18 NATIONAL DEVELOPMENT ASSOCIATION.

19 For each of the fiscal years 1996 through 2000, out20 lays under the ‘‘International Development Association’’

21 account under the International Development Association

22 Act (22 U.S.C. 284 et seq.) for United States contribu23 tions to the International Development Association may

24 not exceed $975,000,000.
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1 SEC. 2005. REDUCTION OF ECONOMIC SUPPORT FUND AS2 SISTANCE.

3 For fiscal years 1996 through 2000, outlays under

4 the ‘‘Economic Support Fund’’ account under chapter 4

5 of part II of the Foreign Assistance Act of 1961 may not

6 exceed the following amounts:

7 (1) FISCAL YEAR 1996.—For fiscal year 1996,

8 outlays shall be at least 10 percent less than outlays

9 for fiscal year 1995.

10 (2) FISCAL YEAR 1997.—For fiscal year 1997,

11 outlays shall be at least 20 percent less than outlays

12 for fiscal year 1995.

13 (3) FISCAL YEAR 1998.—For fiscal year 1998,

14 outlays shall be at least 30 percent less than outlays

15 for fiscal year 1995.

16 (4) FISCAL YEAR 1999.—For fiscal year 1999,

17 outlays shall be at least 40 percent less than outlays

18 for fiscal year 1995.

19 (5) FISCAL YEAR 2000.—For fiscal year 2000,

20 outlays shall be at least 50 percent less than outlays

21 for fiscal year 1995.

22 SEC. 2006. REDUCTION OF BILATERAL DEVELOPMENT AS23 SISTANCE.

24 For each of the fiscal years 1996 through 2000, out25 lays under the following provisions of law may not exceed

26 the following amounts:
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1 (1) DEVELOPMENT ASSISTANCE FUND.—Out2 lays under sections 103 through 106 of the Foreign

3 Assistance Act of 1961 may not exceed

4 $426,000,000.

5 (2) POPULATION, DEVELOPMENT ASSIST6 ANCE.—Outlays under section 104(b) of such Act

7 may not exceed $225,000,000.

8 (3) DEVELOPMENT FUND FOR AFRICA.—Out9 lays under chapter 10 of part I of such Act may not

10 exceed $401,000,000.

11 SEC. 2007. LIMITATION ON UNITED STATES CONTRIBU12 TIONS TO THE UNITED NATIONS.

13 Notwithstanding any other provision of law, the ag14 gregate amount of assessed and voluntary contributions

15 by the United States to the United Nations and its affili16 ated agencies for any calendar year after 1996 shall not

17 exceed an amount which bears the same ratio to the total

18 budget of the United Nations and its affiliated agencies

19 as the total population of the United States bears to the

20 total population of all the member states of the United

21 Nations.
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1 Subtitle B—Reduce Foreign Aid

2 Direct Assistance

3 SEC. 2101. REDUCTION IN ASSISTANCE FOR EASTERN EU4 ROPE AND THE BALTIC STATES.

5 For each of the fiscal years 1996 through 2000, out6 lays under the ‘‘Assistance for Eastern Europe and the

7 Baltic States’’ account under the Foreign Assistance Act

8 of 1961 (22 U.S.C. 2151 et seq.) and the Support for East

9 European Democracy (SEED) Act of 1989 (22 U.S.C.

10 5401 et seq.) for economic assistance and related pro11 grams for Eastern Europe and the Baltic States may not

12 exceed $359,000,000.

13 SEC. 2102. PROHIBITION ON FOREIGN ASSISTANCE TO RUS14 SIA.

15 (a) PROHIBITION.—

16 (1) IN GENERAL.—Foreign assistance may not

17 be obligated or expended for Russia for any fiscal

18 year unless the President certifies to the Congress

19 for such fiscal year the following:

20 (A) The President has received satisfactory

21 assurances from the Government of Russia,

22 which have been confirmed by the Director of

23 the Federal Bureau of Investigation, that the

24 intelligence activities of Russia in the United

25 States are confined to what is considered rou-
42

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1 tine, non-adversarial information gathering

2 activities.

3 (B) Russia has begun, and is making con4 tinual progress toward, the unconditional imple5 mentation of the Russian-Moldovan troop with6 drawal agreement, signed by the prime min7 isters of Russia and Moldova on October 21,

8 1994.

9 (C) Russia is not providing military assist10 ance to any military forces in the Transdniestra

11 region of Moldova.

12 (D) Russian troops in the Kaliningrad re13 gion of Russia are respecting the sovereign ter14 ritory of Lithuania and other neighboring coun15 tries and such troops are not offensively pos16 tured against any other country.

17 (E) The activities of Russia in the other

18 independent states of the former Soviet Union

19 do not represent an attempt by Russia to vio20 late or otherwise diminish the sovereignty and

21 independence of such states.

22 (F) Russia is not providing military assist23 ance to any Bosnian Serb military units or

24 combatants or to the Government of the Fed25 eral Republic of Yugoslavia.
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1 (G) The Government of Russia has ceased

2 the unilateral demarcation of the border be3 tween Russia and Estonia begun in 1994, is en4 gaged in dialogue with the Government of Esto5 nia to resolve this border dispute, and has dem6 onstrated a willingness to submit this issue to

7 international arbitration.

8 (H) Russia is not providing any intel9 ligence information to Cuba and is not provid10 ing any assistance to Cuba with respect to the

11 signal intelligence facility at Lourdes.

12 (I)(i) Russia is not providing to the coun13 tries described in clause (ii) goods or tech14 nology, including conventional weapons, which

15 could materially contribute to the acquisition by

16 these countries of chemical, biological, nuclear,

17 or destabilizing numbers and types of advanced

18 conventional weapons.

19 (ii) The countries described in this sub20 paragraph are Iran, Iraq, Syria, or any country,

21 the government of which the Secretary of State

22 has determined, for purposes of section 6(j)(1)

23 of the Export Administration Act of 1979 (50

24 U.S.C. app. 2405(6)(j)(1)), has repeatedly pro-
44

•HR 1923 IH

1 vided support for acts of international terror2 ism.

3 (J) Russia is in compliance with the Con4 vention on the Prohibition of the Development,

5 Production and Stockpiling of Bacteriological

6 (Biological) and Toxin Weapons and on Their

7 Destruction, signed at Washington, London,

8 and Moscow on April 10, 1972 (TIAS 8062).

9 (K) Russia is in compliance with the 1989

10 Wyoming Memorandum of Understanding relat11 ing to the restriction of chemical weapons.

12 (L) The Government of Russia is commit13 ted to reforming the Russian economy along

14 free-market lines, and is taking concrete steps

15 in this direction.

16 (2) CERTIFICATIONS FOR FISCAL YEARS 1995

17 AND 1996.—In addition to the requirements con18 tained in paragraph (1), with respect to each of the

19 fiscal years 1995 and 1996, foreign assistance may

20 not be obligated or expended for Russia unless the

21 President certifies to the Congress for each such fis22 cal year that the Government of Russia—

23 (A) has ceased its military offensive in

24 Chechnya and is committed to resolving the
45

•HR 1923 IH

1 problem of the status of Chechnya through ne2 gotiations; and

3 (B) has provided the President with a full

4 and accurate accounting of the espionage activi5 ties relating to the case of Aldrich Hazen Ames

6 of the Central Intelligence Agency and has re7 imbursed the United States Government for all

8 amounts paid by Russia to Rosario Ames since

9 her arrest in 1994.

10 (3) REPORT.—The President shall submit to

11 the Congress for each fiscal year a report containing

12 the certifications required by paragraph (1), and

13 with respect to each of the fiscal years 1995 and

14 1996, paragraphs (1) and (2). Such report shall be

15 submitted in unclassified and classified versions.

16 (b) ANNUAL REPORTS.—At the beginning of each fis17 cal year, the President and the Comptroller General of the

18 United States shall each submit to the Congress a report

19 containing the following:

20 (1) The amount of foreign assistance provided

21 to Russia for the preceding fiscal year, including—

22 (A) the name of each organization or en23 tity to which such assistance was provided;

24 (B) the purpose of such assistance; and
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•HR 1923 IH

1 (C) an assessment of the effectiveness of

2 such assistance.

3 (2) A detailed accounting of the amount of for4 eign assistance appropriated for Russia which has

5 not been expended and the status of such assistance.

6 (3) An estimate of the total amount of capital

7 exported from Russia during the previous fiscal year

8 and an analysis of the reasons for the export of such

9 capital.

10 (c) REQUIREMENT TO OPPOSE ASSISTANCE TO RUS11 SIA FROM INTERNATIONAL FINANCIAL INSTITUTIONS.—

12 The President shall instruct the United States executive

13 director of each international financial institution to use

14 the voice and vote of the United States to oppose any as15 sistance from that financial institution to Russia unless

16 Russia is in compliance with the requirements contained

17 in subsection (a).

18 (d) DEFINITIONS.—For purposes of this section:

19 (1) FOREIGN ASSISTANCE.—The term ‘‘foreign

20 assistance’’ means assistance under the Foreign As21 sistance Act of 1961 (22 U.S.C. 2151 et seq.) or the

22 Freedom for Russia and Emerging Eurasian Democ23 racies and Open Markets Support Act of 1992 (22

24 U.S.C. 5801 et seq.), except that such term does not

25 include—
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1 (A) humanitarian assistance;

2 (B) educational and cultural exchanges be3 tween the United States and Russia;

4 (C) assistance provided by the National

5 Endowment for Democracy; and

6 (D) assistance for the purpose of destroy7 ing nuclear weapons, chemical weapons, and

8 other weapons, and related assistance.

9 (2) GOODS OR TECHNOLOGY.—The term

10 ‘‘goods or technology’’ has the meaning given such

11 term in section 1608(3) of the Iran-Iraq Arms Non12 Proliferation Act of 1992 (50 U.S.C. 1701 note).

13 (3) INTERNATIONAL FINANCIAL INSTITU14 TION.—The term ‘‘international financial institu15 tion’’ means the European Bank for Reconstruction

16 and Development, the International Bank for Recon17 struction and Development, the International Devel18 opment Association, the International Financial Cor19 poration, or the International Monetary Fund.

20 (4) OTHER INDEPENDENT STATES OF THE

21 FORMER SOVIET UNION.—The term ‘‘other inde22 pendent states of the former Soviet Union’’ means

23 the following: Armenia, Azerbaijan, Belarus, Esto24 nia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lith-
48

•HR 1923 IH

1 uania, Moldova, Tajikistan, Turkmenistan, Ukraine,

2 and Uzbekistan.

3 (e) EFFECTIVE DATE.—

4 (1) IN GENERAL.—Except as provided in para5 graph (2), this section shall apply only with respect

6 to fiscal years beginning on or after the date of the

7 enactment of this Act.

8 (2) EXCEPTIONS.—In the case of the fiscal year

9 in which this Act is enacted—

10 (A) the prohibition contained in para11 graphs (1) and (2) of subsection (a) shall apply

12 with respect to the obligation or expenditure of

13 foreign assistance on or after the date of the

14 enactment of this Act (including foreign assist15 ance which has been obligated but not expended

16 before the date of the enactment of this Act);

17 and

18 (B) the requirement contained in sub19 section (c) shall apply with respect to the provi20 sion of assistance by an international financial

21 institution on or after the date of the enact22 ment of this Act.
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1 Subtitle C—Reduce Humanitarian

2 Assistance Programs

3 SEC. 2201. AUTHORIZATION OF APPROPRIATIONS FOR EDU4 CATIONAL AND CULTURAL EXCHANGE PRO5 GRAMS.

6 Notwithstanding any other provision of law, there are

7 authorized to be appropriated for ‘‘International Edu8 cational and Cultural Exchange Programs’’ $202,166,000

9 for fiscal year 1996 and $158,363,000 for each of the fis10 cal years 1997, 1998, 1999, and 2000.

11 SEC. 2202. PEACE CORPS FUNDING.

12 Not more than $219,745,000 may be made available

13 to carry out the Peace Corps Act for each of fiscal years

14 1996, 1997, 1998, 1999, and 2000.

15 SEC. 2203. ASSISTANCE FOR THE MIDDLE EAST.

16 (a) ASSISTANCE FOR ISRAEL.—

17 (1) ECONOMIC SUPPORT FUND.—Of the

18 amounts made available for each of the fiscal years

19 1996 through 2000 for assistance under chapter 4

20 of part II of the Foreign Assistance Act of 1961 (22

21 U.S.C. 2346 et seq.) (relating to the economic sup22 port fund), not less than $1,200,000,000 shall be

23 available only for Israel.

24 (2) FOREIGN MILITARY FINANCING.—Of the

25 amounts made available for each of the fiscal years
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1 1996 through 2000 for assistance under the ‘‘For2 eign Military Financing Program’’ account under

3 section 23 of the Arms Export Control Act (22

4 U.S.C. 2763), not less than $1,800,000,000 shall be

5 available only for Israel.

6 (b) ASSISTANCE FOR EGYPT.—

7 (1) ECONOMIC SUPPORT FUND.—Of the

8 amounts made available for each of the fiscal years

9 1996 through 2000 for assistance under chapter 4

10 of part II of the Foreign Assistance Act of 1961 (22

11 U.S.C. 2346 et seq.) (relating to the economic sup12 port fund), not less than $817,000,000 shall be

13 available only for Egypt.

14 (2) FOREIGN MILITARY FINANCING.—Of the

15 amounts made available for each of the fiscal years

16 1996 through 2000 for assistance under the ‘‘For17 eign Military Financing Program’’ account under

18 section 23 of the Arms Export Control Act (22

19 U.S.C. 2763), not less than $1,300,000,000 shall be

20 available only for Egypt.

21 SEC. 2204. ELIMINATION OF PUBLIC LAW 480 TITLE I AND

22 TITLE III PROGRAMS.

23 (a) CONGRESSIONAL SALES PROGRAM.—Title I of

24 the Agricultural Trade Development Assistance Act of

25 1954 (7 U.S.C. 1701–1705) is repealed.
51

•HR 1923 IH

1 (b) FOOD FOR DEVELOPMENT PROGRAM.—Title III

2 of that Act (7 U.S.C. 1727–1727e) is repealed.

3 (c) CONFORMING AMENDMENTS.—That Act is fur4 ther amended as follows:

5 (1) In section 2 by striking paragraphs (3) and

6 (4), by inserting ‘‘and’’ at the end of paragraph (2),

7 and by redesignating paragraph (5) as paragraph

8 (3).

9 (2) In section 401—

10 (A) in subsection (e)(2) by striking ‘‘sec11 tion 303 or’’; and

12 (B) by repealing subsection (f).

13 (3) In section 403—

14 (A) in subsection (b) by striking ‘‘Sec15 retary or the Administrator, as appropriate,’’

16 and inserting ‘‘Administrator’’;

17 (B) in subsection (c)—

18 (i) by striking ‘‘Secretary or the Ad19 ministrator, as appropriate,’’ and inserting

20 ‘‘Administrator’’; and

21 (ii) by striking ‘‘or purchased’’;

22 (C) in subsection (d) by striking all that

23 follows ‘‘recipient countries’’ and inserting a pe24 riod;
52

•HR 1923 IH

1 (D) in subsection (e) by striking ‘‘sales

2 or’’;

3 (E) in subsection (g) by striking ‘‘Sec4 retary or the Administrator, as appropriate,’’

5 and inserting ‘‘Administrator’’;

6 (F) in subsection (h) by striking ‘‘Sec7 retary or’’;

8 (G) in subsection (i) by striking ‘‘Secretary

9 or the Administrator, as appropriate,’’ each

10 place it appears and inserting ‘‘Administrator’’;

11 and

12 (H) in subsection (j)(1)—

13 (i) by striking ‘‘Secretary or the Ad14 ministrator, as appropriate,’’ and inserting

15 ‘‘Administrator’’; and

16 (ii) by striking ‘‘, or to finance the

17 sale of agricultural commodities,’’.

18 (4) In section 404—

19 (A) by repealing subsection (a) and redes20 ignating subsections (b) through (d) as sub21 sections (a) through (c), respectively;

22 (B) in subsection (a), as so redesignated,

23 by striking paragraphs (2) and (3) and redesig24 nating paragraphs (4) and (5) as paragraphs

25 (2) and (3), respectively;
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1 (C) by striking ‘‘Secretary or the’’ each

2 place it appears; and

3 (D) by striking ‘‘, as appropriate,’’ each

4 place it appears.

5 (5) By repealing section 405.

6 (6) In section 407—

7 (A) by repealing subsection (a);

8 (B) by repealing subsection (b);

9 (C) in subsection (c)—

10 (i) by striking ‘‘(c) AGENTS.—’’ and

11 all that follows through ‘‘INTEREST.—’’ in

12 paragraph (4) and inserting ‘‘(a) AVOID13 ANCE OF CONFLICT OF INTEREST.—’’, and

14 moving the remaining text 2 ems to the

15 left; and

16 (ii) by striking ‘‘this paragraph’’ and

17 inserting ‘‘this subsection’’;

18 (D) in subsection (d)—

19 (i) by striking ‘‘(d) TITLE II AND III’’

20 and inserting ‘‘(b) TITLE II’’;

21 (ii) in paragraph (1) by striking ‘‘and

22 title III’’; and

23 (iii) in paragraphs (2) and (3) by

24 striking ‘‘titles II and III’’ and inserting

25 ‘‘title II’’;
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1 (E) in subsection (e)—

2 (i) by striking ‘‘(e)’’ and inserting

3 ‘‘(c)’’; and

4 (ii) by striking ‘‘Secretary or the Ad5 ministrator, as appropriate,’’ and inserting

6 ‘‘Administrator’’; and

7 (F) by repealing subsection (f) and redes8 ignating subsections (g) and (h) as subsections

9 (d) and (e), respectively;

10 (7) In section 408 by striking ‘‘finance sales or

11 to provide other’’ and inserting ‘‘provide’’.

12 (8) By repealing section 410.

13 (9) In section 411 by repealing subsection (d)

14 and redesignating subsection (e) as subsection (d).

15 (10) In section 412—

16 (A) in subsection (a) by striking ‘‘out—’’

17 and all that follows through ‘‘including’’ and in18 serting ‘‘out the emergency and private assist19 ance program under title II, including’’; and

20 (B) by repealing subsections (b) and (c)

21 and by redesignating subsections (d) and (e) as

22 subsections (b) and (c), respectively.

23 (d) TRANSITION RULE.—Provisions of law repealed

24 by this subsection shall continue to apply with respect to

25 agreements entered into under title I or III of the Agricul-
55

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1 tural Trade Development and Assistance Act of 1954 be2 fore the effective date of this section.

3 (e) EFFECTIVE DATE.—This section takes effect on

4 October 1, 1995.

5 SEC. 2205. ABOLITION OF FOREIGN CLAIMS SETTLEMENT

6 COMMISSION.

7 (a) ABOLITION.—The Foreign Claims Settlement

8 Commission of the United States is abolished.

9 (b) TRANSFER OF FUNCTIONS.—All functions of the

10 Foreign Claims Settlement Commission are transferred to

11 the Secretary of State.

12 (c) OTHER TRANSFERS.—Except as otherwise pro13 vided in this section, the assets, liabilities, contracts, prop14 erty, and records employed, held, used, arising from, avail15 able to, or to be made available in connection with the

16 functions transferred by this section, shall be transferred

17 to the Secretary of State for appropriate allocation. Any

18 unexpended balance of appropriations or other funds avail19 able to the Foreign Claims Settlement Commission before

20 the effective date of this section shall be deposited into

21 the Treasury.

22 (d) TERMINATION OF POSITIONS.—Each position in

23 the Foreign Claims Settlement Commission shall termi24 nate.
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1 (e) INCIDENTAL TRANSFERS.—The Director of the

2 Office of Management and Budget shall provide for the

3 termination of the affairs of the Foreign Claims Settle4 ment Commission and for such further measures and dis5 positions as may be necessary to effectuate the purposes

6 of this section.

7 (f) SAVINGS PROVISIONS.—

8 (1) CONTINUITY OF LEGAL FORCE AND EF9 FECT.—All orders, determinations, rules, regula10 tions, permits, grants, contracts, certificates, li11 censes, and privileges—

12 (A) which have been issued, made, grant13 ed, or allowed to become effective by the For14 eign Claims Settlement Commission or official

15 thereof, or by a court of competent jurisdiction,

16 in the performance of functions which are

17 transferred under this section to the Secretary

18 of State, and

19 (B) which are in effect at the time this

20 section takes effect,

21 shall continue in effect according to their terms until

22 modified, terminated, superseded, set aside, or re23 voked by the Secretary of State, or other authorized

24 official, a court of competent jurisdiction, or by op25 eration of law.
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1 (2) PENDING PROCEEDINGS.—(A) The provi2 sions of this section shall not affect any proceedings,

3 including notices of proposed rulemaking, pending

4 on the effective date of this section before the For5 eign Claims Settlement Commission. Such proceed6 ings shall be continued.

7 (B) Orders shall be issued in such proceedings,

8 appeals shall be taken therefrom, and payments

9 shall be made pursuant to such orders, as if this sec10 tion had not been enacted. Orders issued in any

11 such proceedings shall continue in effect until modi12 fied, terminated, superseded, or revoked by the Sec13 retary of State, by a court of competent jurisdiction,

14 or by operation of law.

15 (C) Nothing in this paragraph shall be deemed

16 to prohibit the discontinuance or modification of any

17 such proceeding under the same terms and condi18 tions and to the same extent that such proceeding

19 could have been discontinued or modified if this sec20 tion had not been enacted.

21 (D) The Secretary of State is authorized to pro22 mulgate regulations providing for the orderly trans23 fer to the Department of State of proceedings con24 tinued under this paragraph.
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1 (3) NO EFFECT ON JUDICIAL PROCEEDINGS.—

2 Except as provided in paragraph (5)—

3 (A) the provisions of this section shall not

4 affect suits commenced before the effective date

5 of this section, and

6 (B) in all such suits, proceedings shall be

7 had, appeals taken, and judgments rendered in

8 the same manner and effect as if this section

9 had not been enacted.

10 (4) NONABATEMENT OF PROCEEDINGS.—No

11 suit, action, or other proceeding commenced by or

12 against any officer in the official capacity of such in13 dividual as an officer of the Foreign Claims Settle14 ment Commission shall abate by reason of the enact15 ment of this section. No cause of action by or

16 against the Foreign Claims Settlement Commission

17 or by or against any officer thereof in the official ca18 pacity of such officer shall abate by reason of the

19 enactment of this section.

20 (5) CONTINUATION OF PROCEEDING WITH SUB21 STITUTION OF PARTIES.—If, before the date on

22 which this section takes effect, the Foreign Claims

23 Settlement Commission, or officer thereof in the offi24 cial capacity of such officer, is a party to a suit,

25 then such suit shall be continued with the Secretary
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1 of State or other appropriate official of the Depart2 ment of State substituted or added as a party.

3 (6) REVIEWABILITY OF ORDERS AND ACTIONS

4 UNDER TRANSFERRED FUNCTIONS.—Orders and ac5 tions of the Secretary of State in the exercise of

6 functions transferred under this section shall be sub7 ject to judicial review to the same extent and in the

8 same manner as if such orders and actions had been

9 by the Foreign Claims Settlement Commission exer10 cising such functions immediately preceding their

11 transfer. Any statutory requirements relating to no12 tice, hearings, action upon the record, or administra13 tive review that apply to any function of the Foreign

14 Claims Settlement Commission shall apply to the ex15 ercise of such function by the Secretary of State.

16 (g) REFERENCE.—

17 (1) FUNCTIONS.—With respect to any function

18 of the Foreign Claims Settlement Commission that

19 is transferred by this section and exercised on or

20 after the effective date of this section, reference in

21 any other Federal law to the Foreign Claims Settle22 ment Commission or any officer or employee thereof

23 shall be deemed to refer to the Secretary of State.

24 (2) OTHER REFERENCES.—Any reference to

25 the Foreign Claims Settlement Commission, or any
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1 other official of the Foreign Claims Settlement Com2 mission, in any law, rule, regulation, certificate, di3 rective, instruction, or other official paper in force

4 on the effective date of this section shall be deemed

5 to refer and apply to the Secretary of State.

6 (h) CONFORMING AMENDMENT.—Section 5316 of

7 title 5, United States Code, is amended by striking:

8 ‘‘Chairman, Foreign Claims Settlement Com9 mission of the United States, Department of Jus10 tice.’’.

11 (i) EFFECTIVE DATE.—This section and the amend12 ment made by this section takes effect on October 1, 1995.

13 Subtitle D—Department Reforms

14 SEC. 2301. REDUCTION IN OVERHEAD EXPENSES OF EX15 PORT-IMPORT BANK.

16 (a) IN GENERAL.—The amount obligated by the Ex17 port-Import Bank during fiscal year 1996 for overhead ex18 penses shall not exceed an amount sufficient to reduce

19 outlays for such expenses during such fiscal year (as com20 pared to such outlays during fiscal year 1995) by

21 $1,000,000.

22 (b) OVERHEAD EXPENSES.—For purposes of this

23 section, the term ‘‘overhead expenses’’ means expenses

24 within the following object classifications established by

25 the Director of the Office of Management and Budget:
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1 (1) 21.0 (travel and transportation of persons).

2 (2) 22.0 (transportation of things).

3 (3) 23.1 (rental payments to GSA).

4 (4) 23.3 (communications, utilities, and mis5 cellaneous charges).

6 (5) 24.0 (printing and reproduction).

7 (6) 25.1 (consulting services).

8 (7) 25.2 (other services).

9 (8) 25.5 (research and development contracts).

10 (9) 26.0 (supplies and materials).

11 (10) 31 (equipment).

12 SEC. 2302. TRANSFERS FROM EXCHANGE STABILIZATION

13 FUND TO THE GENERAL FUND OF THE

14 TREASURY.

15 (a) REPAYMENT OF AMOUNTS APPROPRIATED TO

16 THE EXCHANGE STABILIZATION FUND.—Effective Octo17 ber 1, 1996, the Secretary of the Treasury shall transfer

18 from the stabilization fund described in section 5302 of

19 title 31, United States Code, to the general fund of the

20 Treasury the $2,000,000,000 appropriated to such fund

21 under subsection (b) of section 10 of the Gold Reserve

22 Act of 1934 (minus any amounts previously covered into

23 the Treasury pursuant to subsection (c) of such section

24 10 (as amended by section 7(a) of the Bretton Woods

25 Agreements Act)).
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1 (b) TRANSFER OF NET EARNINGS OF THE FUND TO

2 THE GENERAL FUND.—During fiscal years 1994 through

3 ll, the net earnings of the stabilization fund described

4 in section 5302 of title 31, United States Code, shall be

5 transferred by the Secretary of the Treasury from such

6 fund to the general fund of the Treasury.

7 Subtitle E—State Department

8 Reforms

9 CHAPTER 1—UNITED STATES ARMS

10 CONTROL AND DISARMAMENT AGENCY

11 SEC. 2401. ABOLITION OF THE ACDA; REFERENCES IN

12 PART.

13 (a) ABOLITION.—The United States Arms Control

14 and Disarmament Agency is abolished on the effective

15 date of this chapter.

16 (b) CONFORMING REPEAL.—Section 21 of the Arms

17 Control and Disarmament Act (22 U.S.C. 2561) is re18 pealed.

19 (c) REFERENCES IN CHAPTER.—Except as specifi20 cally provided in this chapter, whenever in this chapter

21 an amendment or repeal is expressed as an amendment

22 to or repeal of a provision, the reference shall be deemed

23 to be made to the Arms Control and Disarmament Act.

24 SEC. 2402. REPEAL OF POSITIONS AND OFFICES.

25 The following sections are repealed:
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1 (1) Section 22 (22 U.S.C. 2562; relating to the

2 Director).

3 (2) Section 23 (22 U.S.C. 2563; relating to the

4 Deputy Director).

5 (3) Section 24 (22 U.S.C. 2564; relating to As6 sistant Directors).

7 (4) Section 25 (22 U.S.C. 2565; relating to bu8 reaus, offices, and divisions).

9 SEC. 2403. AUTHORITIES OF THE SECRETARY OF STATE.

10 (a) IN GENERAL.—(1) Except as provided in para11 graph (2), the Arms Control and Disarmament Act (22

12 U.S.C. 2551 et seq.) is amended by striking ‘‘Agency’’ and

13 ‘‘Director’’ each place it appears and inserting ‘‘Depart14 ment’’ and ‘‘Secretary’’, respectively.

15 (2) No amendment shall be made under paragraph

16 (1) to references to the On-Site Inspection Agency or to

17 the Director of Central Intelligence.

18 (b) PURPOSE.—Section 2 (22 U.S.C. 2551) is

19 amended—

20 (1) by striking the second, fourth, fifth, and

21 sixth sentences; and

22 (2) in the seventh sentence, by striking ‘‘It’’

23 and all that follows through ‘‘State,’’ and inserting

24 ‘‘The Department of State shall have the authority’’.
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1 (c) DEFINITIONS.—Section 3 (22 U.S.C. 2552) is

2 amended by striking paragraph (c) and inserting the

3 following:

4 ‘‘(c) The term ‘Department’ means the Depart5 ment of State.

6 ‘‘(d) The term ‘Secretary’ means the Secretary

7 of State.’’.

8 (d) SCIENTIFIC AND POLICY ADVISORY COMMIT9 TEE.—Section 26(b) (22 U.S.C. 2566(b)) is amended by

10 striking ‘‘, the Secretary of State, and the Director’’ and

11 inserting ‘‘and the Secretary of State’’.

12 (e) PRESIDENTIAL SPECIAL REPRESENTATIVES.—

13 Section 27 (22 U.S.C. 2567) is amended by striking ‘‘,

14 acting through the Director’’.

15 (f) PROGRAM FOR VISITING SCHOLARS.—Section 28

16 (22 U.S.C. 2568) is amended—

17 (1) in the second sentence, by striking ‘‘Agen18 cy’s activities’’ and inserting ‘‘Department’s arms

19 control, nonproliferation, and disarmament activi20 ties’’; and

21 (2) in the fourth sentence, by striking ‘‘, and all

22 former Directors of the Agency’’.

23 (g) POLICY FORMULATION.—Section 33(a) (22

24 U.S.C. 2573(a)) is amended by striking ‘‘shall prepare for
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1 the President, the Secretary of State,’’ and inserting

2 ‘‘shall prepare for the President’’.

3 (h) NEGOTIATION MANAGEMENT.—Section 34 (22

4 U.S.C. 2574) is amended—

5 (1) in subsection (a), by striking ‘‘the President

6 and the Secretary of State’’ and inserting ‘‘the

7 President’’; and

8 (2) by striking subsection (b).

9 (i) VERIFICATION OF COMPLIANCE.—Section 37(d)

10 (22 U.S.C. 2577(d)) is amended by striking ‘‘Director’s

11 designee’’ and inserting ‘‘Secretary’s designee’’.

12 (j) GENERAL AUTHORITY.—Section 41 (22 U.S.C.

13 2581) is repealed.

14 (k) USE OF FUNDS.—Section 48 (22 U.S.C. 2588)

15 is repealed.

16 (l) ANNUAL REPORT.—Section 51(a) (22 U.S.C.

17 2593a(a)) is amended by striking ‘‘the Secretary of

18 State,’’.

19 (m) REQUIREMENT FOR AUTHORIZATION OF APPRO20 PRIATIONS.—Section 53 (22 U.S.C. 2593c) is repealed.

21 (n) ON-SITE INSPECTION AGENCY.—Section 61 (22

22 U.S.C. 2595) is amended—

23 (1) in paragraph (1), by striking ‘‘United

24 States Arms Control and Disarmament Agency is’’
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1 and inserting ‘‘Department of State and the Depart2 ment of Defense are respectively’’; and

3 (2) in paragraph (7), by striking ‘‘the United

4 States Arms Control and Disarmament Agency

5 and’’.

6 SEC. 2404. AUTHORIZATION OF APPROPRIATIONS.

7 Section 106 of the Foreign Relations Authorization

8 Act, Fiscal Years 1994 and 1995 (Public Law 103–236)

9 is amended—

10 (1) by amending the section heading to read as

11 follows:

12 ‘‘SEC. 106. DEPARTMENT OF STATE ARMS CONTROL AND

13 DISARMAMENT ACTIVITIES.’’;

14 and

15 (2) in subsection (a), by inserting ‘‘to the Sec16 retary of State’’ after ‘‘appropriated’’.

17 SEC. 2405. CONFORMING AMENDMENTS.

18 (a) The Arms Export Control Act is amended—

19 (1) in section 36(b)(1)(D) (22 U.S.C.

20 2776(b)(1)(D)), by striking ‘‘Director of the Arms

21 Control and Disarmament Agency in consultation

22 with the Secretary of State and’’ and inserting ‘‘Sec23 retary of State in consultation with’’;

24 (2) in section 38(a)(2) (22 U.S.C.

25 2778(a)(2))—
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1 (A) in the first sentence, by striking ‘‘Di2 rector of the United States Arms Control and

3 Disarmament Agency, taking into account the

4 Director’s’’ and inserting ‘‘Secretary of State,

5 taking into account the Secretary’s’’; and

6 (B) in the second sentence, by striking

7 ‘‘The Director of the Arms Control and Disar8 mament Agency is authorized, whenever the Di9 rector’’ and inserting ‘‘The Secretary of State is

10 authorized, whenever the Secretary’’;

11 (3) in section 42(a) (22 U.S.C. 2791(a))—

12 (A) in paragraph (1)(C), by striking ‘‘Di13 rector of the United States Arms Control and

14 Disarmament Agency’’ and inserting ‘‘Secretary

15 of State’’; and

16 (B) in paragraph (2)—

17 (i) in the first sentence, by striking

18 ‘‘Director of the United States Arms Con19 trol and Disarmament Agency’’ and insert20 ing ‘‘Secretary of State’’; and

21 (ii) in the second sentence, by striking

22 ‘‘Director of the Arms Control and Disar23 mament Agency is authorized, whenever

24 the Director’’ and inserting ‘‘Secretary of
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1 State is authorized, whenever the Sec2 retary’’;

3 (4) in section 71(a) of such Act (22 U.S.C.

4 2797(a)), by striking ‘‘, the Director of the Arms

5 Control and Disarmament Agency,’’ and inserting

6 ‘‘Secretary of State’’;

7 (5) in section 71(b)(1) of such Act (22 U.S.C.

8 2797(b)(1)), by striking ‘‘Director of the United

9 States Arms Control and Disarmament Agency’’ and

10 inserting ‘‘Secretary of State;

11 (6) in section 71(b)(2) of such Act (22 U.S.C.

12 2797(b)(2))—

13 (A) by striking ‘‘Director of the United

14 States Arms Control and Disarmament Agen15 cy’’ and inserting ‘‘Secretary of State’’; and

16 (B) by striking ‘‘or the Director’’;

17 (7) in section 71(c) of such Act (22 U.S.C.

18 2797(c)), by striking ‘‘Director of the United States

19 Arms Control and Disarmament Agency,’’ and in20 serting ‘‘Secretary of State’’; and

21 (8) in section 73(d) of such Act (22 U.S.C.

22 2797b(d)), by striking ‘‘, the Secretary of Com23 merce, and the Director of the United States Arms

24 Control and Disarmament Agency’’ and inserting

25 ‘‘and the Secretary of Commerce’’.
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1 (b) Section 1706(b) of the United States Institute of

2 Peace Act (22 U.S.C. 4605(b)) is amended—

3 (1) by striking out paragraph (3);

4 (2) by redesignating paragraphs (4) and (5) as

5 paragraphs (3) and (4), respectively; and

6 (3) in paragraph (4) (as redesignated by para7 graph (2)), by striking ‘‘Eleven’’ and inserting

8 ‘‘Twelve’’.

9 (c) The Atomic Energy Act of 1954 is amended—

10 (1) in section 57 b. (42 U.S.C. 2077(b))—

11 (A) in the first sentence, by striking ‘‘the

12 Arms Control and Disarmament Agency,’’, and

13 (B) in the second sentence, by striking

14 ‘‘the Director of the Arms Control and Disar15 mament Agency,’’, and

16 (2) in section 123 (42 U.S.C. 2153)—

17 (A) in subsection a. (in the text below

18 paragraph (9)—

19 (i) by striking ‘‘and in consultation

20 with the Director of the Arms Control and

21 Disarmament Agency (‘the Director’)’’,

22 and

23 (ii) by striking ‘‘and the Director’’

24 and inserting ‘‘and the Secretary of De25 fense’’,
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1 (B) in subsection d., in the first proviso, by

2 striking ‘‘Director of the Arms Control and Dis3 armament Agency’’ and inserting ‘‘Secretary of

4 Defense’’, and

5 (C) in the first undesignated paragraph

6 following subsection d., by striking ‘‘the Arms

7 Control and Disarmament Agency,’’.

8 (d) The Nuclear Non-Proliferation Act of 1978 is

9 amended—

10 (1) in section 4, by striking paragraph (2);

11 (2) in section 102, by striking ‘‘the Secretary of

12 State, and the Director of the Arms Control and

13 Disarmament Agency’’ and inserting ‘‘and the Sec14 retary of State’’; and

15 (3) in section 602(c), by striking ‘‘the Arms

16 Control and Disarmament Agency,’’.

17 (e) Title 5, United States Code, is amended—

18 (1) in section 5313, by striking ‘‘Director of the

19 United States Arms Control and Disarmament

20 Agency.’’,

21 (2) in section 5314, by striking ‘‘Deputy Direc22 tor of the United States Arms Control and Disar23 mament Agency.’’,

24 (3) in section 5315—
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1 (A) by striking ‘‘Assistant Directors,

2 United States Arms Control and Disarmament

3 Agency (4).’’, and

4 (B) by striking ‘‘Special Representatives of

5 the President for arms control, nonproliferation,

6 and disarmament matters, United States Arms

7 Control and Disarmament Agency’’, and insert8 ing ‘‘Special Representatives of the President

9 for arms control, nonproliferation, and disar10 mament matters, Department of State’’, and

11 (4) in section 5316, by striking ‘‘General Coun12 sel of the United States Arms Control and Disar13 mament Agency.’’.

14 SEC. 2406. REFERENCES IN LAW.

15 Any reference in any statute, reorganization plan,

16 Executive order, regulation, agreement, determination, or

17 other official document or proceeding to the United States

18 Arms Control and Disarmament Agency or the Director

19 or other official of the United States Arms Control and

20 Disarmament Agency shall be deemed to refer respectively

21 to the Department of State or the Secretary of State or

22 other official of the Department of State.

23 SEC. 2407. EFFECTIVE DATE.

24 This chapter and the amendments made by this chap25 ter shall take effect on March 1, 1997.
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1 CHAPTER 2—UNITED STATES

2 INFORMATION AGENCY

3 SEC. 2431. ABOLITION.

4 The United States Information Agency is abolished

5 upon the effective date of this chapter.

6 SEC. 2432. REFERENCES IN LAW.

7 Any reference in any statute, reorganization plan,

8 Executive order, regulation, agreement, determination, or

9 other official document or proceeding to—

10 (1) the Director of the United States Informa11 tion Agency or the Director of the International

12 Communication Agency shall be deemed to refer to

13 the Secretary of State; and

14 (2) the United States Information Agency,

15 USIA, or the International Communication Agency

16 shall be deemed to refer to the Department of State.

17 SEC. 2433. AMENDMENTS TO TITLE 5.

18 Title 5, United States Code, is amended—

19 (1) in section 5313, by striking ‘‘Director of the

20 United States Information Agency.’’;

21 (2) in section 5315, by striking ‘‘Deputy Direc22 tor of the United States Information Agency.’’; and

23 (3) in section 5316, by striking ‘‘Deputy Direc24 tor, Policy and Plans, United States Information
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1 Agency.’’ and striking ‘‘Associate Director (Policy

2 and Plans), United States Information Agency.’’.

3 SEC. 2434. AMENDMENTS TO UNITED STATES INFORMA4 TION AND EDUCATIONAL EXCHANGE ACT OF

5 1948.

6 (a) REFERENCES IN SECTION.—Except as specifi7 cally provided in this section, whenever in this section an

8 amendment or repeal is expressed as an amendment or

9 repeal of a provision, the reference shall be deemed to be

10 made to the United States Information and Educational

11 Exchange Act of 1948 (22 U.S.C. 1431 et seq.).

12 (b) IN GENERAL.—Except as otherwise provided in

13 this section, the Act (other than section 604 and sub14 sections (a) and (c) of section 701) is amended—

15 (1) by striking ‘‘United States Information

16 Agency’’ each place it appears and inserting ‘‘De17 partment of State’’;

18 (2) by striking ‘‘Director of the United States

19 Information Agency’’ each place it appears and in20 serting ‘‘Secretary of State’’;

21 (3) by striking ‘‘Director’’ each place it appears

22 and inserting ‘‘Secretary of State’’;

23 (4) by striking ‘‘USIA’’ each place it appears

24 and inserting ‘‘Department of State; and
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1 (5) by striking ‘‘Agency’’ each place it appears

2 and inserting ‘‘Department of State.

3 (c) SATELLITE AND TELEVISION BROADCASTS.—

4 Section 505 (22 U.S.C. 1464a) is amended—

5 (1) by striking ‘‘Director of the United States

6 Information Agency’’ each of the three places it ap7 pears and inserting ‘‘Secretary of State’’;

8 (2) in subsection (b), by striking ‘‘To be effec9 tive, the United States Information Agency’’ and in10 serting ‘‘To be effective in carrying out this sub11 section, the Department of State’’;

12 (3) by striking ‘‘USIA–TV’’ each place it ap13 pears and inserting ‘‘DEPARTMENT OF STATE–

14 TV’’; and

15 (4) by striking subsection (e).

16 (d) NONDISCRETIONARY PERSONNEL COSTS AND

17 CURRENCY FLUCTUATIONS.—Section 704 (22 U.S.C.

18 1477b) is amended—

19 (1) in subsection (b), by inserting after ‘‘au20 thorized by law’’ the following: ‘‘in connection with

21 carrying out the informational and educational ex22 change functions of the Department’’; and

23 (2) in subsection (c), by striking ‘‘United States

24 Information Agency’’ each place it appears and in25 serting ‘‘Department of State in carrying out the in-
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1 formational and educational exchange functions of

2 the Department’’.

3 (e) REPROGRAMMING NOTIFICATIONS.—Section 705

4 (22 U.S.C. 1477c) is amended by striking ‘‘United States

5 Information Agency’’ each place it appears and inserting

6 ‘‘Department of State in carrying out its informational

7 and educational exchange functions’’.

8 (f) AUTHORITIES OF THE SECRETARY.—Section

9 801(3) (22 U.S.C. 1471(3)) is amended by striking all ‘‘if

10 the sufficiency’’ and all that follows and inserting ‘‘if the

11 Secretary determines that title to such real property or

12 interests is sufficient;’’.

13 (g) REPEAL OF THE USIA SEAL.—Section 807 (22

14 U.S.C. 1475b) is repealed.

15 (h) ACTING ASSOCIATE DIRECTORS.—Section 808

16 (22 U.S.C. 1475c) is repealed.

17 (i) DEBT COLLECTION.—Section 811 (22 U.S.C.

18 1475f) is amended by inserting ‘‘informational and edu19 cational exchange’’ before ‘‘activities’’ each place it ap20 pears.

21 (j) OVERSEAS POSTS.—Section 812 (22 U.S.C.

22 1475g) is amended by striking ‘‘United States Informa23 tion Agency post’’ each place it appears and inserting ‘‘in24 formational and educational exchange post of the Depart25 ment of State’’.
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1 (k) DEFINITION.—Section 4 (22 U.S.C. 1433) is

2 amended by adding at the end the following:

3 ‘‘(4) ‘informational and educational exchange

4 functions’, with respect to the Department of State,

5 refers to functions exercised by the United States

6 Information Agency before the effective date of title

7 XIII of the Foreign Affairs Reinvention Act of

8 1995.’’.

9 SEC. 2435. AMENDMENTS TO THE MUTUAL EDUCATIONAL

10 AND CULTURAL EXCHANGE ACT OF 1961

11 (FULBRIGHT-HAYS ACT).

12 (a) REFERENCES IN SECTION.—Except as specifi13 cally provided in this section, whenever in this section an

14 amendment or repeal is expressed as an amendment or

15 repeal of a provision, the reference shall be deemed to be

16 made to the Mutual Educational and Cultural Exchange

17 Act of 1961 (22 U.S.C. 2451 et seq.).

18 (b) IN GENERAL.—The Act (22 U.S.C. 2451 et seq.)

19 is amended by striking ‘‘Director of the International

20 Communication Agency’’ each place it appears and insert21 ing ‘‘Secretary of State’’.

22 (c) PROGRAM AUTHORITIES.—(1) Section 102(a) (22

23 U.S.C. 2452(a)) is amended by striking ‘‘President’’ each

24 place it appears and inserting ‘‘Secretary of State’’.
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1 (2) Section 102(b) (22 U.S.C. 2452(b)) is amended

2 by striking ‘‘President’’ and inserting ‘‘Secretary of State

3 (except, in the case of paragraphs (6) and (10), the Presi4 dent)’’.

5 (d) INTERNATIONAL AGREEMENTS.—Section 103

6 (22 U.S.C. 2453) is amended by striking ‘‘President’’ each

7 place it appears and inserting ‘‘Secretary of State’’.

8 (e) PERSONNEL BENEFITS.—Section 104(d) (22

9 U.S.C. 2454(d)) is amended by striking ‘‘President’’ each

10 place it appears and inserting ‘‘Secretary of State’’.

11 (f) FOREIGN STUDENT COUNSELING.—Section

12 104(e)(3) (22 U.S.C. 2454(e)(3)) is amended by striking

13 ‘‘President’’ and inserting ‘‘Secretary of State’’.

14 (g) PUBLICITY AND PROMOTION OVERSEAS.—Sec15 tion 104(e)(4) (22 U.S.C. 2454(e)(4)) is amended by

16 striking ‘‘President’’ and inserting ‘‘Secretary of State’’.

17 (h) USE OF FUNDS.—Section 105(e) (22 U.S.C.

18 2455(e)) is amended by striking ‘‘President’’ each place

19 it appears and inserting ‘‘Secretary of State’’.

20 (i) REPEAL OF AUTHORITY FOR ABOLISHED ADVI21 SORY COMMITTEE.—Section 106(c) of the Mutual Edu22 cational and Cultural Exchange Act of 1961 (22 U.S.C.

23 2456(c)) is repealed.

24 (j) BUREAU OF EDUCATIONAL AND CULTURAL AF25 FAIRS.—
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1 (1) IN GENERAL.—Section 112(a) (22 U.S.C.

2 2460(a)) is amended by striking the first sentence

3 and inserting the following: ‘‘In order to carry out

4 the purposes of this Act, there is established in the

5 Department of State a Bureau for International Ex6 change Activities (in this section referred to as the

7 ‘‘Bureau’’).

8 (2) IMPLEMENTATION OF PROGRAMS.—Section

9 112(c) (22 U.S.C. 2460(c)) is amended by striking

10 ‘‘President’’ each place it appears and inserting

11 ‘‘Secretary of State’’.

12 SEC. 2436. INTERNATIONAL BROADCASTING ACTIVITIES.

13 (a) IN GENERAL.—(1) Except as otherwise provided

14 in paragraph (2), title III of the Foreign Relations Au15 thorization Act, Fiscal Years 1994 and 1995 (Public Law

16 103–236) is amended—

17 (A) by striking ‘‘Director of the United States

18 Information Agency’’ or ‘‘Director’’ each place it ap19 pears and inserting ‘‘Under Secretary of State for

20 Public Diplomacy’’;

21 (B) by striking all references to ‘‘United States

22 Information Agency’’ that were not stricken in sub23 paragraph (A) and inserting ‘‘Department of State’’;

24 (C) in section 305(a)(1), by inserting ‘‘(includ25 ing activities of the Voice of America previously car-
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1 ried out by the United States Information Agency)’’

2 after ‘‘this title’’;

3 (D) in section 305(b), by striking ‘‘Agency’s’’

4 each place it appears and inserting ‘‘Department’s’’;

5 and

6 (E) by striking ‘‘Bureau’’ each place it appears

7 and inserting ‘‘Office’’.

8 (2) Title III of such Act is amended—

9 (A) in section 304(c)—

10 (i) by striking ‘‘Director’s’’ and inserting

11 ‘‘Under Secretary’s’’; and

12 (ii) in the fifth sentence, by striking ‘‘Di13 rector of the United States Information Agency,

14 the acting Director of the agency’’ and insert15 ing ‘‘Under Secretary of State for Public Diplo16 macy, the acting Under Secretary’’;

17 (B) in sections 305(b) and 307(b)(1), by strik18 ing ‘‘Director of the Bureau’’ each place it appears

19 and inserting ‘‘Director of the Office’’;

20 (C) in subsections (i) and (j) of section 308, by

21 striking ‘‘Inspector General of the United States In22 formation Agency’’ each place it appears and insert23 ing ‘‘Inspector General for Foreign Affairs’’; and

24 (D) in section 310(d), by striking ‘‘Director on

25 the date of enactment of this Act, to the extent that
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1 the Director’’ and inserting ‘‘Under Secretary on the

2 effective date of title XIII of the Foreign Affairs

3 Reinvention Act of 1995, to the extent that the

4 Under Secretary’’.

5 (b) CONFORMING AMENDMENT TO TITLE 5.—Sec6 tion 5315 of title 5, United States Code, is amended by

7 striking ‘‘Director of the International Broadcasting Bu8 reau, the United States Information Agency’’ and insert9 ing ‘‘Director of the International Broadcasting Office,

10 the Department of State’’.

11 SEC. 2437. TELEVISION BROADCASTING TO CUBA.

12 (a) AUTHORITY.—Section 243(a) of the Television

13 Broadcasting to Cuba Act (as contained in part D of title

14 II of Public Law 101–246) (22 U.S.C. 1465bb(a)) is

15 amended by striking ‘‘United States Information Agency

16 (hereafter in this part referred to as the ‘Agency’)’’ and

17 inserting ‘‘Department of State (hereafter in this chapter

18 referred to as the ‘Department’)’’.

19 (b) TELEVISION MARTI SERVICE.—Section 244 of

20 such Act (22 U.S.C. 1465cc) is amended—

21 (1) in subsection (a)—

22 (A) by amending the first sentence to read

23 as follows: ‘‘The Secretary of State shall admin24 ister within the Voice of America the Television

25 Marti Service.’’, and
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1 (B) in the third sentence, by striking ‘‘Di2 rector of the United States Information Agen3 cy’’ and inserting ‘‘Secretary of State’’;

4 (2) in subsection (b)—

5 (A) in the subsection heading, by striking

6 ‘‘USIA’’ and inserting ‘‘Department of State’’,

7 (B) by striking ‘‘Agency facilities’’ and in8 serting ‘‘Department facilities’’, and

9 (C) by striking ‘‘United States Information

10 Agency Television Service’’ and inserting ‘‘De11 partment of State Television Service’’; and

12 (3) in subsection (c)—

13 (A) by striking ‘‘USIA AUTHORITY.—The

14 Agency’’ and inserting ‘‘SECRETARY OF STATE

15 AUTHORITY.—The Secretary of State’’; and

16 (B) by striking ‘‘Agency’’ the second place

17 it appears and inserting ‘‘Secretary of State’’.

18 (c) ASSISTANCE FROM OTHER GOVERNMENT AGEN19 CIES.—Section 246 of such Act (22 U.S.C. 1465dd) is

20 amended—

21 (1) by striking ‘‘United States Information

22 Agency’’ and inserting ‘‘Department of State’’; and

23 (2) by striking ‘‘the Agency’’ and inserting ‘‘the

24 Department’’.
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1 (d) AUTHORIZATION OF APPROPRIATIONS.—Section

2 247(a) of such Act (22 U.S.C. 1465ee(a)) is repealed.

3 SEC. 2438. RADIO BROADCASTING TO CUBA.

4 (a) FUNCTIONS OF THE DEPARTMENT OF STATE.—

5 Section 3 of the Radio Broadcasting to Cuba Act (22

6 U.S.C. 1465a) is amended—

7 (1) in the section heading, by striking ‘‘United

8 States Information Agency’’ and inserting ‘‘Depart9 ment of State’’;

10 (2) in subsection (a), by striking ‘‘United

11 States Information Agency (hereafter in this Act re12 ferred to as the ‘Agency’)’’ and inserting ‘‘Depart13 ment of State (hereafter in this Act referred to as

14 the ‘Department’)’’;

15 (3) by striking subsection (d); and

16 (4) in subsection (f), by striking ‘‘Director of

17 the United States Information Agency’’ and insert18 ing ‘‘Secretary of State’’.

19 (b) CUBA SERVICE.—Section 4 of such Act (22

20 U.S.C. 1465b) is amended—

21 (1) by amending the first sentence to read as

22 follows: ‘‘The Secretary of State shall administer

23 within the Voice of America the Cuba Service (here24 after in this section referred to as the ‘Service’).’’;

25 and
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1 (2) in the third sentence, by striking ‘‘Director

2 of the United States Information Agency’’ and in3 serting ‘‘Secretary of State’’.

4 (c) ASSISTANCE FROM OTHER GOVERNMENT AGEN5 CIES.—Section 6 of such Act (22 U.S.C. 1465d) is amend6 ed—

7 (1) in subsection (a)—

8 (A) by striking ‘‘United States Information

9 Agency’’ and inserting ‘‘Department of State’’;

10 and

11 (B) by striking ‘‘the Agency’’ and inserting

12 ‘‘the Department’’; and

13 (2) in subsection (b)—

14 (A) by striking ‘‘The Agency’’ and insert15 ing ‘‘The Department’’; and

16 (B) by striking ‘‘the Agency’’ and inserting

17 ‘‘the Secretary of State’’.

18 (d) FACILITY COMPENSATION.—Section 7 of such

19 Act (22 U.S.C. 1465e) is amended—

20 (1) in subsection (b), by striking ‘‘the Agency’’

21 and inserting ‘‘the Department’’; and

22 (2) in subsection (d), by striking ‘‘Agency’’ and

23 inserting ‘‘Department’’.

24 (e) AUTHORIZATION OF APPROPRIATIONS.—Section

25 8 of such Act (22 U.S.C. 1465f) is amended—
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1 (1) by striking subsections (a) and (b) and in2 serting the following:

3 ‘‘(a) The amount obligated by the Department of

4 State each fiscal year to carry out this Act shall be suffi5 cient to maintain broadcasts to Cuba under this Act at

6 rates no less than the fiscal year 1985 level of obligations

7 by the former United States Information Agency for such

8 broadcasts.’’; and

9 (2) by redesignating subsection (c) as sub10 section (b).

11 SEC. 2439. NATIONAL ENDOWMENT FOR DEMOCRACY.

12 (a) GRANTS.—Section 503 of Public Law 98–164, as

13 amended (22 U.S.C. 4412) is amended—

14 (1) in subsection (a)—

15 (A) by striking ‘‘Director of the United

16 States Information Agency’’ and inserting ‘‘Sec17 retary of State’’;

18 (B) by striking ‘‘the Agency’’ and inserting

19 ‘‘the Department of State’’; and

20 (C) by striking ‘‘the Director’’ and insert21 ing ‘‘the Secretary of State’’; and

22 (2) in subsection (b), by striking ‘‘United

23 States Information Agency’’ and inserting ‘‘Depart24 ment of State’’.
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1 (b) AUDITS.—Section 504(g) of such Act (22 U.S.C.

2 4413(g)) is amended by striking ‘‘United States Informa3 tion Agency’’ and inserting ‘‘Department of State’’.

4 (c) FREEDOM OF INFORMATION.—Section 506 of

5 such Act (22 U.S.C. 4415) is amended—

6 (1) in subsection (b)—

7 (A) by striking ‘‘Director’’ each of the

8 three places it appears and inserting ‘‘Sec9 retary’’; and

10 (B) by striking ‘‘of the United States In11 formation Agency’’ and inserting ‘‘of State’’;

12 and

13 (2) in subsection (c)—

14 (A) in the subsection heading by striking

15 ‘‘USIA’’ and inserting ‘‘DEPARTMENT OF

16 STATE’’;

17 (B) by striking ‘‘Director’’ each of the

18 three places it appears and inserting ‘‘Sec19 retary’’;

20 (C) by striking ‘‘of the United States In21 formation Agency’’ and inserting ‘‘of State’’;

22 and

23 (D) by striking ‘‘United States Informa24 tion Agency’’ and inserting ‘‘Department of

25 State’’.
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1 SEC. 2430. UNITED STATES SCHOLARSHIP PROGRAM FOR

2 DEVELOPING COUNTRIES.

3 (a) PROGRAM AUTHORITY.—Section 603 of the For4 eign Relations Authorization Act, Fiscal Years 1986 and

5 1987 (22 U.S.C. 4703) is amended by striking ‘‘United

6 States Information Agency’’ and inserting ‘‘Department

7 of State’’.

8 (b) GUIDELINES.—Section 604(11) of such Act (22

9 U.S.C. 4704(11)) is amended by striking ‘‘United States

10 Information Agency’’ and inserting ‘‘Department of

11 State’’.

12 (c) POLICY REGARDING OTHER INTERNATIONAL

13 EDUCATIONAL PROGRAMS.—Section 606(b) of such Act

14 (22 U.S.C. 4706(b)) is amended—

15 (1) in the subsection heading, by striking

16 ‘‘USIA’’ and inserting ‘‘STATE DEPARTMENT’’; and

17 (2) by striking ‘‘Director of the United States

18 Information Agency’’ and inserting ‘‘Secretary of

19 State’’.

20 (d) GENERAL AUTHORITIES.—Section 609(e) of such

21 Act (22 U.S.C. 4709(e)) is amended by striking ‘‘United

22 States Information Agency’’ and inserting ‘‘Department

23 of State’’.

24 SEC. 2431. NATIONAL SECURITY EDUCATION BOARD.

25 Section 803 of the Intelligence Authorization Act,

26 Fiscal Year 1992 (50 U.S.C. 1903(b)) is amended—
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1 (1) in subsection (b)—

2 (A) by striking paragraph (6); and

3 (B) by redesignating paragraph (7) as

4 paragraph (6); and

5 (2) in subsection (c), by striking ‘‘subsection

6 (b)(7)’’ and inserting ‘‘subsection (b)(6)’’.

7 SEC. 2432. CENTER FOR CULTURAL AND TECHNICAL INTER8 CHANGE BETWEEN NORTH AND SOUTH.

9 Section 208 of the Foreign Relations Authorization

10 Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2075) is

11 amended by striking ‘‘Director of the United States Infor12 mation Agency’’ each place it appears and inserting ‘‘Sec13 retary of State’’.

14 SEC. 2433. CENTER FOR CULTURAL AND TECHNICAL INTER15 CHANGE BETWEEN EAST AND WEST.

16 (a) DUTIES.—Section 703 of the Mutual Security Act

17 of 1960 (22 U.S.C. 2055) is amended—

18 (1) in the text above paragraph (1), by striking

19 ‘‘Director of the United States Information Agency’’

20 (hereinafter referred to as the ‘Director’)’’ and in21 serting ‘‘Secretary of State (hereinafter referred to

22 as the ‘Secretary’); and

23 (2) in paragraph (1), by striking ‘‘establishment

24 and’’.
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1 (b) ADMINISTRATION.—Section 704 of such Act (22

2 U.S.C. 2056) is amended—

3 (1) by striking ‘‘Director of the United States

4 Information Agency’’ and inserting ‘‘Secretary of

5 State’’; and

6 (2) by striking ‘‘Director’’ each place it appears

7 and inserting ‘‘Secretary’’.

8 SEC. 2434. MISSION OF THE DEPARTMENT OF STATE.

9 Section 202 of the Foreign Relations Authorization

10 Act, Fiscal Year 1979 (22 U.S.C. 1461–1) is amended—

11 (1) in the first sentence, by striking ‘‘mission of

12 the United States Information Agency’’ and insert13 ing ‘‘mission of the Department of State in carrying

14 out its information, educational, and cultural func15 tions’’;

16 (2) in the second sentence, in the text above

17 paragraph (1), by striking ‘‘United States Informa18 tion Agency’’ and inserting ‘‘Department of State’’;

19 (3) in paragraph (1)(B), by striking ‘‘Agency’’

20 and inserting ‘‘Department’’; and

21 (4) in paragraph (5), by striking ‘‘mission of

22 the Agency’’ and inserting ‘‘mission described in this

23 section’’.
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1 SEC. 2435. CONSOLIDATION OF ADMINISTRATIVE SERV2 ICES.

3 Section 23 of the State Department Basic Authorities

4 Act of 1956 (22 U.S.C. 2695(a)) is amended—

5 (1) by striking ‘‘(including’’ and all that follows

6 through ‘‘Agency)’’; and

7 (2) by striking ‘‘other such agencies’’ and in8 serting ‘‘other Federal agencies’’.

9 SEC. 2436. GRANTS.

10 Section 212 of the Foreign Relations Authorization

11 Act, Fiscal Years 1992 and 1993 (22 U.S.C. 1475h) is

12 amended—

13 (1) in subsection (a), by striking ‘‘United

14 States Information Agency’’ and inserting ‘‘Depart15 ment of State, in carrying out its international infor16 mation, educational, and cultural functions,’’;

17 (2) in subsection (b), by striking ‘‘United

18 States Information Agency’’ and inserting ‘‘Depart19 ment of State’’;

20 (3) in subsection (c)—

21 (A) in paragraph (1), by striking ‘‘United

22 States Information Agency shall substantially

23 comply with United States Information Agen24 cy’’ and inserting ‘‘Department of State, in car25 rying out its international information, edu-
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1 cational, and cultural functions, shall substan2 tially comply with Department of State’’; and

3 (B) in paragraph (2), by striking ‘‘United

4 States Information Agency’’ and inserting ‘‘De5 partment of State’’; and

6 (C) in paragraphs (2) and (3), by striking

7 ‘‘Agency’’ each of the two places it appears and

8 inserting ‘‘Department’’; and

9 (4) by striking subsection (d).

10 SEC. 2437. BAN ON DOMESTIC ACTIVITIES.

11 Section 208 of the Foreign Relations Authorization

12 Act, Fiscal Years 1986 and 1987 (22 U.S.C. 1461–1a)

13 is amended—

14 (1) by striking out ‘‘United States Information

15 Agency’’ each of the two places it appears and in16 serting ‘‘Department of State’’; and

17 (2) by inserting ‘‘in carrying out international

18 information, educational, and cultural activities com19 parable to those previously administered by the

20 United States Information Agency’’ before ‘‘shall be

21 distributed’’.

22 SEC. 2438. CONFORMING REPEAL TO THE ARMS CONTROL

23 AND DISARMAMENT ACT.

24 Section 34(b) of the Arms Control and Disarmament

25 Act (22 U.S.C. 2574(b)) is repealed.
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1 SEC. 2439. REPEAL RELATING TO PROCUREMENT OF

2 LEGAL SERVICES.

3 Section 26(b) of the State Department Basic Au4 thorities Act of 1956 (22 U.S.C. 2698(b)) is repealed.

5 SEC. 2440. REPEAL RELATING TO PAYMENT OF SUBSIST6 ENCE EXPENSES.

7 Section 32 of the State Department Basic Authorities

8 Act of 1956 (22 U.S.C. 2704) is amended by striking the

9 second sentence.

10 SEC. 2441. CONFORMING AMENDMENT TO THE SEED ACT.

11 Section 2(c) of the Support for East European De12 mocracy (SEED) Act of 1989 (22 U.S.C. 5401(c)) is

13 amended in paragraph (17) by striking ‘‘United States In14 formation Agency’’ and inserting ‘‘Department of State’’.

15 SEC. 2442. INTERNATIONAL CULTURAL AND TRADE CEN16 TER COMMISSION.

17 Section 7(c)(1) of the Federal Triangle Development

18 Act (40 U.S.C. 1106(c)(1)) is amended—

19 (1) in the text above subparagraph (A), by

20 striking ‘‘15 members’’ and inserting ‘‘14 mem21 bers’’;

22 (2) by striking subparagraph (F); and

23 (3) by redesignating subparagraphs (G)

24 through (J) as subparagraphs (F) through (I), re25 spectively.
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1 SEC. 2443. OTHER LAWS REFERENCED IN REORGANIZA2 TION PLAN NO. 2 OF 1977.

3 (a) IMMIGRATION AND NATIONALITY ACT.—(1) Sec4 tion 101(a)(15)(J) of the Immigration and Nationality

5 Act (8 U.S.C. 1101(a)(15)(J)) is amended by striking

6 ‘‘Director of the United States Information Agency’’ and

7 inserting ‘‘Secretary of State’’.

8 (2) Section 212(e) of such Act (8 U.S.C. 1182(e))

9 is amended—

10 (A) by striking ‘‘Director of the United States

11 Information Agency’’ and inserting ‘‘Secretary of

12 State’’; and

13 (B) by striking ‘‘Director’’ each place it appears

14 and inserting ‘‘Secretary’’.

15 (b) ARTS AND ARTIFACTS INDEMNITY ACT.—Section

16 3(a) of the Arts and Artifacts Indemnity Act (20 U.S.C.

17 972(a)) is amended by striking out ‘‘Director of the Unit18 ed States Information Agency’’ and inserting in lieu there19 of ‘‘Secretary of State’’.

20 (c) NATIONAL FOUNDATION ON THE ARTS AND THE

21 HUMANITIES ACT OF 1965.—Section 9(b) of the National

22 Foundation on the Arts and the Humanities Act of 1965

23 (20 U.S.C. 958(b)) is amended by striking out ‘‘a member

24 designated by the Director of the United States Informa25 tion Agency,’’ and inserting in lieu thereof ‘‘a member des26 ignated by the Secretary of State,’’.
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1 (d) WOODROW WILSON MEMORIAL ACT OF 1968.—

2 Section 3(b) of the Woodrow Wilson Memorial Act of 1968

3 (20 U.S.C. 80f(b)) is amended—

4 (1) in the matter preceding paragraph (1), by

5 striking out ‘‘19 members’’ and inserting in lieu

6 thereof ‘‘18 members’’;

7 (2) by striking out paragraph (7); and

8 (3) by redesignating paragraphs (8), (9), and

9 (10) as paragraphs (7), (8), and (9), respectively.

10 (e) PUBLIC LAW 95–86.—Title V of the Departments

11 of State, Justice, and Commerce, the Judiciary, and Re12 lated Agencies Appropriations Act, 1978 (Public Law 95–

13 86) is amended in the third proviso of the paragraph

14 ‘‘SALARIES AND EXPENSES’’ under the heading ‘‘UNITED

15 STATES INFORMATION AGENCY’’ (22 U.S.C. 1461b) by

16 striking out ‘‘the United States Information Agency is au17 thorized,’’ and inserting in lieu thereof ‘‘the Secretary of

18 State may,’’.

19 (f) ACT OF JULY 9, 1949.—The Act of July 9, 1949

20 (63 Stat. 408; chapter 301; 22 U.S.C. 2681 et seq.) is

21 repealed.
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1 SEC. 2444. EXCHANGE PROGRAM WITH COUNTRIES IN

2 TRANSITION FROM TOTALITARIANISM TO DE3 MOCRACY.

4 Section 602 of the National and Community Service

5 Act of 1990 (22 U.S.C. 2452a) is amended—

6 (1) in the second sentence of subsection (a), by

7 striking ‘‘United States Information Agency’’ and

8 inserting ‘‘Department of State’’; and

9 (2) in subsection (b)—

10 (A) by striking ‘‘appropriations account of

11 the United States Information Agency’’ and in12 serting ‘‘appropriate appropriations account of

13 the Department of State’’; and

14 (B) by striking ‘‘and the United States In15 formation Agency’’.

16 SEC. 2445. EDMUND S. MUSKIE FELLOWSHIP PROGRAM.

17 Section 227 of the Foreign Relations Authorization

18 Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452 note)

19 is amended—

20 (1) in subsection (b), by striking ‘‘United

21 States Information Agency’’ and inserting ‘‘Depart22 ment of State’’; and

23 (2) by striking subsection (d).
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1 SEC. 2446. IMPLEMENTATION OF CONVENTION ON CUL2 TURAL PROPERTY.

3 Title III of the Convention on Cultural Property Im4 plementation Act (19 U.S.C. 2601 et seq.) is amended by

5 striking ‘‘Director of the United States Information Agen6 cy’’ each place it appears and inserting ‘‘Secretary of

7 State’’.

8 SEC. 2447. REPEAL.

9 Section 252(a) of the Foreign Relations Authoriza10 tion Act, Fiscal Years 1994 and 1995 (22 U.S.C. 6101(a))

11 is repealed.

12 SEC. 2448. UNITED STATES ADVISORY COMMITTEE FOR

13 PUBLIC DIPLOMACY.

14 Section 604 of the United States Information and

15 Educational Exchange Act of 1948 (22 U.S.C. 1469) is

16 amended—

17 (1) in subsection (c)(1)—

18 (A) by striking ‘‘the Director of the United

19 States Information Agency,’’; and

20 (B) by striking ‘‘Director or the Agency,

21 and shall appraise the effectiveness of policies

22 and programs of the Agency’’ and inserting

23 ‘‘Secretary of State or the Department of State,

24 and shall appraise the effectiveness of the infor25 mation, educational, and cultural policies and

26 programs of the Department’’;
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1 (2) in subsection (c)(2), in the first sentence—

2 (A) by striking ‘‘the Secretary of State,

3 and the Director of the United States Informa4 tion Agency’’ and inserting ‘‘, and the Secretary

5 of State’’;

6 (B) by striking ‘‘Agency’’ the first place it

7 appears and inserting ‘‘Department of State’’;

8 and

9 (C) by striking ‘‘Director for effectuating

10 the purposes of the Agency’’ and inserting

11 ‘‘Secretary for effectuating the information,

12 educational, and cultural functions of the De13 partment’’;

14 (3) in subsection (c)(3), by striking ‘‘programs

15 conducted by the Agency’’ and inserting ‘‘informa16 tion, educational, and cultural programs conducted

17 by the Department of State’’; and

18 (4) in subsection (c)(4), by striking ‘‘Director

19 of the United States Information Agency’’ and in20 serting ‘‘Secretary of State’’.

21 SEC. 2449. EFFECTIVE DATE.

22 This chapter, and the amendments made by this

23 chapter, shall take effect on March 1, 1997.
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1 CHAPTER 3—AGENCY FOR

2 INTERNATIONAL DEVELOPMENT

3 Subchapter A—General Provisions

4 SEC. 2451. EFFECTIVE DATE.

5 (a) IN GENERAL.—Except as provided in subsection

6 (b), this chapter, and the amendments made by this chap7 ter, shall take effect—

8 (1) on March 1, 1997; or

9 (2) on such earlier date as the President shall

10 determine to be appropriate and announce by notice

11 published in the Federal Register, which date may

12 be not earlier than 60 calendar days (excluding any

13 day on which either House of Congress is not in ses14 sion because of an adjournment sine die) after the

15 President has submitted a reorganization plan to the

16 appropriate congressional committees pursuant to

17 section 421.

18 (b) REORGANIZATION PLAN.—Section 421 shall take

19 effect on the date of enactment of this Act.

20 SEC. 2452. REFERENCES IN THIS CHAPTER.

21 Except as specifically provided in this chapter, when22 ever in this chapter an amendment or repeal is expressed

23 in terms of an amendment to, or repeal of, a provision,

24 the reference shall be considered to be made to a provision

25 of the Foreign Assistance Act of 1961.
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1 Subchapter B—Abolition of the Agency for

2 International Development and Transfer

3 of Functions to the Secretary of State

4 SEC. 2455. ABOLITION OF AGENCY FOR INTERNATIONAL

5 DEVELOPMENT AND THE INTERNATIONAL

6 DEVELOPMENT COOPERATION AGENCY.

7 The Agency for International Development and the

8 International Development Cooperation Agency are abol9 ished.

10 SEC. 2456. TRANSFER OF FUNCTIONS TO SECRETARY OF

11 STATE.

12 There are transferred to the Secretary of State all

13 functions of the Administrator of the Agency for Inter14 national Development and the Director of the Inter15 national Development Cooperation Agency and all func16 tions of the Agency for International Development and the

17 International Development Cooperation Agency and any

18 officer or component of such agencies under any statute,

19 reorganization plan, Executive order, or other provision of

20 law before the effective date of this chapter, except as oth21 erwise provided in this chapter.
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1 Subchapter C—Reorganization of Depart2 ment of State Relating to Functions

3 Transferred Under This Chapter

4 SEC. 2461. REORGANIZATION PLAN.

5 (a) SUBMISSION OF PLAN.—Not later than March 1,

6 1996, the President, in consultation with the Secretary

7 and the Administrator of the Agency for International De8 velopment, shall transmit to the appropriate congressional

9 committees a reorganization plan providing for—

10 (1) the abolition of the Agency for International

11 Development in accordance with this chapter;

12 (2) the transfer to the Department of State of

13 the functions and personnel of the Agency for Inter14 national Development consistent with the provisions

15 of this chapter; and

16 (3) the consolidation, reorganization, and

17 streamlining of the Department upon the transfer of

18 functions under this chapter in order to carry out

19 such functions.

20 (b) PLAN ELEMENTS.—The plan under subsection

21 (a) shall—

22 (1) identify the functions of the Agency for

23 International Development that will be transferred

24 to the Department under the plan;
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1 (2) identify the personnel and positions of the

2 Agency (including civil service personnel, Foreign

3 Service personnel, and detailees) that will be trans4 ferred to the Department, separated from service

5 with the Agency, or be eliminated under the plan,

6 and set forth a schedule for such transfers, separa7 tions, and terminations;

8 (3) identify the personnel and positions of the

9 Department (including civil service personnel, For10 eign Service personnel, and detailees) that will be

11 transferred within the Department, separated from

12 service with the Department, or eliminated under

13 the plan, and set forth a schedule for such transfers,

14 separations, and terminations;

15 (4) specify the consolidations and reorganiza16 tion of functions of the Department that will be re17 quired under the plan in order to permit the Depart18 ment to carry out the functions transferred to the

19 Department under the plan;

20 (5) specify the funds available to the Agency for

21 International Development that will be transferred

22 to the Department under this chapter as a result of

23 the transfer of functions of the Agency to the De24 partment;
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1 (6) specify the proposed allocations within the

2 Department of unexpended funds transferred in con3 nection with the transfer of functions under the

4 plan; and

5 (7) specify the proposed disposition of the prop6 erty, facilities, contracts, records, and other assets

7 and liabilities of the Agency in connection with the

8 transfer of the functions of the Agency to the De9 partment.

10 (c) ASSISTANT SECRETARY POSITIONS.—The plan

11 under subsection (a) shall provide for an appropriate num12 ber of Assistant Secretaries of State to carry out the func13 tions transferred to the Department under this chapter.

14 SEC. 2462. PRINCIPAL OFFICERS.

15 (a) UNDER SECRETARY OF STATE FOR DEVELOP16 MENT AND ECONOMIC AFFAIRS.—

17 (1) ESTABLISHMENT.—Section 1(b) of the

18 State Department Basic Authorities Act of 1956 (22

19 U.S.C. 2651a(b)) is amended by adding after para20 graph (2) the following new paragraph:

21 ‘‘(3) UNDER SECRETARY FOR DEVELOPMENT

22 AND ECONOMIC AFFAIRS.—There shall be in the De23 partment of State an Under Secretary for Develop24 ment and Economic Affairs who shall assist the Sec25 retary and the Deputy Secretary in the formation
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1 and implementation of United States policies and ac2 tivities concerning international development and

3 economic affairs.’’.

4 (b) TRANSITION PROVISION.—The President may ap5 point the individual serving as Administrator of the Agen6 cy for International Development on the day before the

7 effective date of this chapter, or such other official ap8 pointed by and with the advice and consent of the Senate

9 and serving within the Department of State or the Agency

10 for International Development as the President considers

11 appropriate, to serve as the acting Under Secretary for

12 Development and Economic Affairs until an individual is

13 appointed to that office in accordance with section 1(b)(1)

14 of the State Department Basic Authorities Act of 1956,

15 as amended by this Act.

16 Subchapter D—Conforming Amendments

17 SEC. 2465. REFERENCES.

18 Any reference in any statute, reorganization plan,

19 Executive order, regulation, agreement, determination, or

20 other official document or proceeding to—

21 (1) the Administrator of the Agency for Inter22 national Development, or any other officer or em23 ployee of the Agency for International Development

24 shall be deemed to refer to the Secretary of State;
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1 (2) the Director or any other officer or em2 ployee of the International Development Cooperation

3 Agency (IDCA) shall be deemed to refer to the Sec4 retary of State; or

5 (3) the Agency for International Development,

6 AID, the agency primarily responsible for admin7 istering part I of the Foreign Assistance Act of

8 1961, or the International Development Cooperation

9 Agency (IDCA) shall be deemed to refer to the De10 partment of State.

11 SEC. 2466. ABOLITION OF OFFICE OF INSPECTOR GENERAL

12 OF THE AGENCY FOR INTERNATIONAL DE13 VELOPMENT AND TRANSFER OF FUNCTIONS

14 TO OFFICE OF INSPECTOR GENERAL OF THE

15 DEPARTMENT OF STATE.

16 (a) ABOLITION OF OFFICE OF INSPECTOR GENERAL

17 OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT.—

18 The Office of Inspector General of the Agency for Inter19 national Development is abolished.

20 (b) AMENDMENTS TO THE INSPECTOR GENERAL ACT

21 OF 1978.—The Inspector General Act of 1978 (5 U.S.C.

22 App.) is amended as follows:

23 (1) Section 8A is repealed.
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1 (2) Section 11(1) is amended by striking ‘‘the

2 Administrator of the Agency for International Devel3 opment,’’.

4 (3) Section 11(2) is amended by striking ‘‘the

5 Agency for International Development,’’.

6 (c) AMENDMENTS TO TITLE 5, UNITED STATES

7 CODE.—Section 5315 of title 5, United States Code, is

8 amended by striking the following: ‘‘Inspector General,

9 Agency for International Development.’’.

10 (d) FUNCTIONS OF OFFICE OF INSPECTOR GENERAL

11 OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT

12 TRANSFERRED TO OFFICE OF INSPECTOR GENERAL OF

13 THE DEPARTMENT OF STATE.—There are transferred to

14 the Office of Inspector General of the Department of State

15 the functions that the Office of Inspector General of the

16 Agency for International Development exercised before the

17 effective date of this chapter (including all related func18 tions of the Inspector General of the Agency for Inter19 national Development).

20 (e) TRANSFER AND ALLOCATIONS OF APPROPRIA21 TIONS AND PERSONNEL.—The Inspector General of the

22 Department of State, is authorized to make such inciden23 tal dispositions of personnel, assets, liabilities, grants, con24 tracts, property, records, and unexpended balances of ap25 propriations, authorizations, allocations, and other funds
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1 held, used, arising from, available to, or to be made avail2 able in connection with such functions, as may be nec3 essary to carry out the provisions of this section.

4 SEC. 2467. ABOLITION OF CHIEF FINANCIAL OFFICER OF

5 THE AGENCY FOR INTERNATIONAL DEVELOP6 MENT AND TRANSFER OF FUNCTIONS TO

7 CHIEF FINANCIAL OFFICER DEPARTMENT OF

8 STATE.

9 (a) ABOLITION OF OFFICE OF CHIEF FINANCIAL OF10 FICER OF THE AGENCY FOR INTERNATIONAL DEVELOP11 MENT.—The Office of Chief Financial Officer of the Agen12 cy for International Development is abolished.

13 (b) AMENDMENT TO TITLE 31, UNITED STATES

14 CODE.—Section 901(b)(2) of title 31, United States Code,

15 is amended by striking subparagraph (A).

16 (c) FUNCTIONS OF OFFICE OF CHIEF FINANCIAL

17 OFFICER OF THE AGENCY FOR INTERNATIONAL DEVEL18 OPMENT TRANSFERRED TO OFFICE OF CHIEF FINANCIAL

19 OFFICER OF THE DEPARTMENT OF STATE.—There are

20 transferred to the Office of Chief Financial Officer of the

21 Department of State the functions that the Office of Chief

22 Financial Officer of the Agency for International Develop23 ment exercised before the effective date of this chapter (in24 cluding all related functions of the Chief Financial Officer

25 of the Agency for International Development).
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1 (d) TRANSFER AND ALLOCATIONS OF APPROPRIA2 TIONS AND PERSONNEL.—The Director of the Office of

3 Management and Budget, in consultation with the Sec4 retary of State, is authorized to make such incidental dis5 positions of personnel, assets, liabilities, grants, contracts,

6 property, records, and unexpended balances of appropria7 tions, authorizations, allocations, and other funds held,

8 used, arising from, available to, or to be made available

9 in connection with such functions, as may be necessary

10 to carry out the provisions of this section.

11 SEC. 2468. AMENDMENTS TO TITLE 5, UNITED STATES

12 CODE.

13 Title 5, United States Code, is amended—

14 (1) in section 5313, by striking ‘‘Administrator,

15 Agency for International Development.’’;

16 (2) in section 5314, by striking ‘‘Deputy Ad17 ministrator, Agency for International Develop18 ment.’’;

19 (3) in section 5315—

20 (A) by striking ‘‘Assistant Administrators,

21 Agency for International Development (6).’’;

22 and

23 (B) by striking ‘‘Regional Assistant Ad24 ministrators, Agency for International Develop25 ment (4).’’; and
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1 (4) in section 5316 by striking ‘‘General Coun2 sel of the Agency for International Development.’’.

3 SEC. 2469. PUBLIC LAW 480 PROGRAM.

4 The Agricultural Trade Development and Assistance

5 Act of 1954 (Public Law 83–480; 7 U.S.C. 1691 et seq.)

6 is amended by striking ‘‘Administrator’’ each place it ap7 pears and inserting ‘‘Under Secretary of State for Devel8 opment and Economic Affairs’’.

9 CHAPTER 4—ORGANIZATION OF THE DE10 PARTMENT OF STATE AND FOREIGN

11 SERVICE

12 SEC. 2471. OFFICE OF THE SECRETARY OF STATE.

13 (a) SECRETARY OF STATE.—Section 1 of the State

14 Department Basic Authorities of 1956 (22 U.S.C. 2651a)

15 is amended—

16 (1) by redesignating paragraphs (3) and (4) as

17 paragraphs (4) and (5), respectively; and

18 (2) by inserting after paragraph (2) the follow19 ing new paragraph:

20 ‘‘(3) The Secretary shall serve as the principal

21 foreign policy adviser to the President and shall,

22 under the direction of the President, be responsible

23 for the overall direction, coordination, and super24 vision of United States foreign relations and for the
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1 interdepartmental activities of the United States

2 Government abroad.’’.

3 (b) DEPUTY SECRETARY.—Section 1(b) of the State

4 Department Basic Authorities Act of 1956 (22 U.S.C.

5 2651a(b)) is amended to read as follows:

6 ‘‘(b) DEPUTY SECRETARY.—(1) There shall be within

7 the Department of State a Deputy Secretary of State, who

8 shall be appointed by the President, by and with the advice

9 and consent of the Senate.

10 ‘‘(2) The Deputy Secretary shall have primary re11 sponsibility, which may not be delegated, to assure ade12 quate foreign policy coordination with respect to the inter13 national activities of other agencies and development enti14 ties.

15 ‘‘(3) The Deputy Secretary shall act for, and exercise

16 the powers of, the Secretary during his absence or disabil17 ity or during a vacancy in the office of the Secretary.’’.

18 (c) AMERICA DESK.—Section 1(c) of the State De19 partment Basic Authorities Act of 1956 (22 U.S.C.

20 2651a(c)) is amended to read as follows:

21 ‘‘(c) AMERICA DESK.—(1)(A) The Secretary shall es22 tablish and maintain staff within the office of the Sec23 retary that shall be responsible for ensuring that adequate

24 consideration is afforded to United States commercial and
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1 business interests in the formulation of United States for2 eign policy.

3 ‘‘(B) The staff established under subparagraph (A)

4 may be referred to as the ‘America Desk’.

5 ‘‘(2) The America Desk shall also serve as an om6 budsman and as a point of liaison to United States com7 mercial and economic interests and to provide policy8 makers with input that will help keep policy responsive

9 to the needs of United States citizens.

10 ‘‘(3) In addition, in the event of certain foreign emer11 gencies or crises affecting United States citizens, the

12 America Desk shall help energize the Department’s re13 sources in a coordinated response.’’.

14 (d) RESOURCES, POLICY, AND PLANNING STAFF.—

15 Section 1 of the State Department Basic Authorities Act

16 of 1956 (22 U.S.C. 2651a) is amended—

17 (1) by striking subsection (e);

18 (2) by redesignating subsection (d) as sub19 section (e); and

20 (3) by amending subsection (d) to read as fol21 lows:

22 ‘‘(d) RESOURCES, POLICY, AND PLANNING STAFF.—

23 (1) The Secretary shall establish and maintain a Re24 sources, Policy, and Planning Staff within the office of

25 the Secretary to provide the Secretary, the Deputy Sec-
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1 retary of State, and the Under Secretaries of State precise

2 information on and recommendations concerning the re3 source implications of foreign policy proposals.

4 ‘‘(2) The staff shall be responsible to ensure that the

5 Secretary of State has an independent assessment of the

6 budgetary impact of foreign policy proposals.’’.

7 (e) ASSUMPTION OF DUTIES BY INCUMBENT AP8 POINTEES.—An individual holding an office immediately

9 prior to the date of enactment of this Act—

10 (1) who was appointed to the office by the

11 President, by and with the advice and consent of the

12 Senate; and

13 (2) who performs duties substantially similar to

14 the duties of an office created or proposed to be cre15 ated under the amendments of this section,

16 may, in the discretion of the Secretary of State, assume

17 the duties of such new office, and shall not be required

18 to be reappointed by reason of the enactment of this

19 section.

20 SEC. 2472. UNDER SECRETARIES.

21 (a) AMENDMENT TO THE STATE DEPARTMENT

22 BASIC AUTHORITIES ACT.—The State Department Basic

23 Authorities Act of 1956 (22 U.S.C. 2651a et seq.) is

24 amended by inserting after section 1 the following new

25 section:
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1 ‘‘SEC. 1A. UNDER SECRETARIES OF STATE.

2 ‘‘(a) IN GENERAL.—(1) There shall be in the Depart3 ment of State not more than the following five Under Sec4 retaries of State, who shall be appointed by the President,

5 by and with the advice and consent of the Senate:

6 ‘‘(A) The Under Secretary of State for Policy.

7 ‘‘(B) The Under Secretary of State for Export,

8 Trade, Economics, and Business.

9 ‘‘(C) The Under Secretary of State for Inter10 national Security.

11 ‘‘(D) The Under Secretary of State for Public

12 Diplomacy.

13 ‘‘(E) The Under Secretary of State for Manage14 ment.

15 ‘‘(2) The responsibilities of the Under Secretaries of

16 State include, but are not limited to, the responsibilities

17 provided for in this section.

18 ‘‘(b) UNDER SECRETARY OF STATE FOR POLICY.—

19 ‘‘(1) IN GENERAL.—There is an Under Sec20 retary of State for Policy.

21 ‘‘(2) RESPONSIBILITIES.—The Under Secretary

22 of State for Policy shall be responsible to the Sec23 retary of State and the Deputy Secretary of State

24 for the following:
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1 ‘‘(A) Assisting in the development, imple2 mentation, and conduct of foreign policy and

3 foreign assistance policy.

4 ‘‘(B) Determining the policy goals and

5 functions of United States diplomatic missions

6 and ensuring that overall mission staffing re7 flects policy priorities.

8 ‘‘(C) Ensuring policy coordination of all

9 international programs carried out by the de10 partments and agencies of the Federal Govern11 ment in the areas within the responsibilities of

12 the Under Secretary.

13 ‘‘(3) OFFICE OF THE UNDER SECRETARY.—

14 There shall be within the Office of the Under Sec15 retary for Policy the Office of Enterprise Fund Co16 ordination which shall ensure that programs of en17 terprise funds support regional policy goals, are well

18 managed and audited, and are sufficiently capital19 ized.

20 ‘‘(c) UNDER SECRETARY OF STATE FOR EXPORT,

21 TRADE, ECONOMICS, AND BUSINESS.—

22 ‘‘(1) IN GENERAL.—There is an Under Sec23 retary of State for Export, Trade, Economics, and

24 Business.
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1 ‘‘(2) RESPONSIBILITIES.—(A) The Under Sec2 retary of State for Export, Trade, Economics, and

3 Business shall be responsible to the Secretary of

4 State and the Deputy Secretary of State for the fol5 lowing:

6 ‘‘(i) Assisting in the development, imple7 mentation, and conduct of foreign policy and

8 foreign assistance policy with respect to export

9 promotion, trade, economics, and business and

10 with respect to science and environmental mat11 ters and the oceans.

12 ‘‘(ii) Overseeing international programs

13 with respect to the matters referred to in sub14 paragraph (A) that are carried out by the de15 partments and agencies of the Federal Govern16 ment other than the Department of State.

17 ‘‘(B) The Under Secretary shall be the rep18 resentative of the Department of State on the Trade

19 Promotion Coordinating Committee established

20 under section 2312 of the Export Enhancement Act

21 of 1988 (15 U.S.C. 4724).

22 ‘‘(d) UNDER SECRETARY OF STATE FOR INTER23 NATIONAL SECURITY.—

24 ‘‘(1) IN GENERAL.—There is an Under Sec25 retary of State for International Security.
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1 ‘‘(2) RESPONSIBILITIES.—The Under Secretary

2 of State for International Security shall be respon3 sible to the Secretary of State and the Deputy Sec4 retary of State for the following:

5 ‘‘(A) Assisting in the development of policy

6 relating to matters of international security, in7 cluding arms control and nonproliferation,

8 international narcotics and crime control, refu9 gee and migration affairs, emergency humani10 tarian issues, and foreign assistance issues re11 lated thereto.

12 ‘‘(B) Advising on matters of arms control

13 and disarmament, arms sales, and nonprolifera14 tion of weapons of mass destruction.

15 ‘‘(3) OFFICE OF THE UNDER SECRETARY.—

16 There shall be within the Office of the Under Sec17 retary of State for International Security—

18 ‘‘(A) the Coordinator for Economic Sup19 port Funds-Foreign Military Financing, who

20 shall seek to assure that programs under chap21 ter 4 of part II of the Foreign Assistance Act

22 of 1961 and under section 23 of the Arms Ex23 port Control Act reflect United States foreign

24 policy objectives; and
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1 ‘‘(B) the Coordinator for Counter-Terror2 ism, who shall develop, coordinate, and oversee

3 the implementation of, the policy of the Depart4 ment of State to counter acts of international

5 terrorism.

6 ‘‘(e) UNDER SECRETARY OF STATE FOR PUBLIC DI7 PLOMACY.—

8 ‘‘(1) IN GENERAL.—There is an Under Sec9 retary of State for Public Diplomacy.

10 ‘‘(2) RESPONSIBILITIES.—The Under Secretary

11 of State for Public Diplomacy shall be responsible to

12 the Secretary of State and the Deputy Secretary of

13 State for the following:

14 ‘‘(A) Assisting in the development, imple15 mentation, and conduct of United States policy

16 on public diplomacy, including international ex17 change programs and international broadcast18 ing.

19 ‘‘(B) Coordinating international exchange

20 programs that are carried out by departments

21 and agencies of the Federal Government other

22 than the Department of State.

23 ‘‘(C) Disseminating information, including

24 the use and maintenance of electronic informa-
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1 tion capabilities, such as the wireless file, and

2 library and overseas resource centers.

3 ‘‘(i) providing information to the pub4 lic outside the United States on United

5 States foreign policy and assistance policy;

6 and

7 ‘‘(ii) providing to the Secretary of

8 State information on public reaction, for9 eign attitudes and media reaction to Unit10 ed States foreign policy.

11 ‘‘(3) OFFICE OF THE UNDER SECRETARY.—

12 There shall be within the office of the Under Sec13 retary of State of Public Diplomacy the Press Office

14 and Spokesperson which shall carry out domestic li15 aison activities, including authority over the current

16 foreign press centers in the United States.

17 ‘‘(f) UNDER SECRETARY OF STATE FOR MANAGE18 MENT.—

19 ‘‘(1) IN GENERAL.—There is an Under Sec20 retary of State for Management.

21 ‘‘(2) RESPONSIBILITIES.—The Under Secretary

22 of State for Management shall be responsible to the

23 Secretary of State and the Deputy Secretary of

24 State for the following:
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1 ‘‘(A) Assisting in the development, imple2 mentation, and conduct of policy for the man3 agement of the Department of State, including

4 the management of United States diplomatic

5 missions and consular posts abroad.

6 ‘‘(B) Assuring adequate management sup7 port for the conduct of United States foreign

8 policy and foreign assistance policy, including

9 personnel staffing levels adequate to support

10 the overall foreign policy objectives.

11 ‘‘(C) Developing and implementing policy

12 on consular programs.’’.

13 (b) ASSUMPTION OF DUTIES BY INCUMBENT AP14 POINTEES.—An individual holding an office immediately

15 prior to the date of enactment of this Act—

16 (1) who was appointed to the office by the

17 President, by and with the advice and consent of the

18 Senate; and

19 (2) who performs duties substantially similar to

20 the duties of an office created or proposed to be cre21 ated under section 1A of the State Department

22 Basic Authorities Act of 1956,

23 may, in the discretion of the Secretary of State, assume

24 the duties of such new office, and shall not be required
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1 to be reappointed by reason of the enactment of that

2 section.

3 SEC. 2473. ASSISTANT SECRETARIES OF STATE.

4 (a) AMENDMENT TO THE STATE DEPARTMENT

5 BASIC AUTHORITIES ACT.—The State Department Basic

6 Authorities Act of 1956 (22 U.S.C. 2651a et seq.) is

7 amended by inserting after section 1A, as added by section

8 1102, the following new section:

9 ‘‘SEC. 1B. ASSISTANT SECRETARIES OF STATE.

10 ‘‘(a) IN GENERAL.—(1) There shall be in the Depart11 ment of State not more than 20 Assistant Secretaries of

12 State, who shall be appointed by the President, by and

13 with the advice and consent of the Senate. The responsibil14 ities of the Assistant Secretaries of State include, but are

15 not limited to, the responsibilities provided for in this sec16 tion.

17 ‘‘(2) Under each Assistant Secretary of State having

18 regional responsibilities described in paragraphs (1)

19 through (6) of subsection (b), there should be a Deputy

20 Assistant Secretary of State for Trade, and Development

21 Assistance.

22 ‘‘(b) ASSISTANT SECRETARIES REPORTING TO THE

23 UNDER SECRETARY OF STATE FOR POLICY.—The follow24 ing Assistant Secretaries of State should be subject to the

25 supervision and policy guidance of the Under Secretary
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1 of State for Policy and should have the following respon2 sibilities:

3 ‘‘(1) ASSISTANT SECRETARY FOR INTER-AMER4 ICAN AFFAIRS.—There should be an Assistant Sec5 retary of State for Inter-American Affairs who

6 should assist in the development and implementation

7 of United States foreign policy and foreign assist8 ance policy with respect to the Western Hemisphere.

9 ‘‘(2) ASSISTANT SECRETARY FOR WESTERN

10 AND CENTRAL EUROPEAN AFFAIRS.—There should

11 be an Assistant Secretary of State for Western and

12 Central European Affairs who should assist in the

13 development and implementation of United States

14 foreign policy and foreign assistance policy with re15 spect to Western and Central Europe.

16 ‘‘(3) ASSISTANT SECRETARY FOR ASIAN AND

17 PACIFIC AFFAIRS.—There should be an Assistant

18 Secretary of State for Asian and Pacific Affairs who

19 should assist in the development and implementation

20 of United States foreign policy and foreign assist21 ance policy with respect to Asia and the Pacific.

22 ‘‘(4) ASSISTANT SECRETARY FOR AFRICAN AF23 FAIRS.—There should be an Assistant Secretary of

24 State for African Affairs who should assist in the

25 development and implementation of United States
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1 foreign policy and foreign assistance policy with re2 spect to Africa.

3 ‘‘(5) ASSISTANT SECRETARY FOR NEAR EAST4 ERN AFFAIRS.—There should be an Assistant Sec5 retary of State for Near Eastern Affairs who should

6 assist in the development and implementation of

7 United States foreign policy and foreign assistance

8 policy with respect to the Near East.

9 ‘‘(6) ASSISTANT SECRETARY FOR EASTERN EU10 ROPE AND CENTRAL ASIA AFFAIRS.—There should

11 be an Assistant Secretary of State for Eastern Eu12 rope and Central Asia Affairs who should assist in

13 the development and implementation of United

14 States foreign policy and foreign assistance policy

15 with respect to Armenia, Azerbaijan, Georgia,

16 Kazakstan, Kyrgyzstan, Russia, Tajikistan,

17 Turkmenistan, and Uzbekistan.

18 ‘‘(7) ASSISTANT SECRETARY FOR INTER19 NATIONAL ORGANIZATIONS.—There should be an As20 sistant Secretary for International Organizations

21 who should have the rank and status of Ambassador

22 Extraordinary and Plenipotentiary and who—

23 ‘‘(A) should serve as the Permanent Rep24 resentative of the United States to the United

25 Nations;
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1 ‘‘(B) may serve ex officio as representative

2 of the United States in any organ, commission,

3 or other body of any international organization

4 other than a specialized agency of the United

5 Nations;

6 ‘‘(C) should develop, coordinate, and imple7 ment United States policy in the United Na8 tions, specialized agencies, and other inter9 national organizations, including United States

10 policy on issues relating to United Nations

11 peacekeeping activities;

12 ‘‘(D) should ensure that the United States

13 participates in international organizations in a

14 consistent fashion; and

15 ‘‘(E) should manage United States partici16 pation in multilateral conferences, including ac17 crediting and instructing United States delega18 tions to such conferences and providing rep19 resentational and logistical support to such

20 delegations.

21 ‘‘(8) ASSISTANT SECRETARY FOR DEMOCRACY

22 AND HUMAN RIGHTS.—There should be an Assistant

23 Secretary of State for Democracy and Human

24 Rights, who should—
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1 ‘‘(A) develop, coordinate, and implement

2 United States policy and programs for the pro3 motion of freedom, democracy, respect for

4 human rights, and similar matters around the

5 world;

6 ‘‘(B) support and provide advice to the re7 gional Assistant Secretaries of State referred to

8 in paragraphs (1) through (6) in the promotion

9 of the matters referred to in subparagraph (A);

10 ‘‘(C) serve as liaison with nongovernmental

11 organizations that are active in the promotion

12 of such matters;

13 ‘‘(D) prepare the annual report of the De14 partment of State on human rights practices;

15 and

16 ‘‘(E) advise the Immigration and Natu17 ralization Service on applications by foreign na18 tionals for political asylum in the United States.

19 ‘‘(c) ASSISTANT SECRETARIES REPORTING TO THE

20 UNDER SECRETARY OF STATE FOR EXPORT, TRADE, EC21 ONOMICS, AND BUSINESS.—The following Assistant Sec22 retaries of State should be subject to the supervision and

23 policy guidance of the Under Secretary of State for Ex24 port, Trade, Economics, and Business and should have the

25 following responsibilities:
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1 ‘‘(1) ASSISTANT SECRETARY FOR ECONOMICS

2 AND BUSINESS AFFAIRS.—

3 ‘‘(A) IN GENERAL.—There should be an

4 Assistant Secretary of State for Economics and

5 Business Affairs who should—

6 ‘‘(i) develop, coordinate, and imple7 ment United States international economic

8 policy, including resource and food policy,

9 energy policy, trade policy, policy with re10 spect to economic sanctions, and policy for

11 the promotion of a stable and open inter12 national financial system;

13 ‘‘(ii) ensure that United States eco14 nomic and commercial interests are given

15 appropriate weight in the development and

16 implementation of United States foreign

17 policy;

18 ‘‘(iii) negotiate agreements for the

19 purposes of promoting United States busi20 ness abroad, improving the economic com21 petitiveness of United States business

22 abroad, and facilitating United States

23 business activities abroad; and

24 ‘‘(iv) advise other bureaus and ele25 ments of the Department of State on eco-
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1 nomic policy issues relating to the matters

2 set forth in clauses (i) through (iii).

3 ‘‘(B) OFFICE OF THE ASSISTANT SEC4 RETARY.—There should be within the Office of

5 the Assistant Secretary of State for Economic

6 and Business Affairs the Office of Tele7 communications and Aviation. The office

8 should—

9 ‘‘(i) develop, coordinate, and imple10 ment policy on issues relating to inter11 national telecommunications, international

12 information utilization and exchange, and

13 international aviation and maritime mat14 ters;

15 ‘‘(ii) consult with and coordinate the

16 activities of the other departments and

17 agencies of the Federal Government with

18 respect to the policy referred to in clause

19 (i); and

20 ‘‘(iii) conduct negotiations with for21 eign governments and international organi22 zations with respect to such policy.

23 ‘‘(2) ASSISTANT SECRETARY FOR OCEANS AND

24 ENVIRONMENTAL AND SCIENCE AFFAIRS.—There

25 should be an Assistant Secretary of State for Oceans
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1 and Environmental and Science Affairs who should

2 develop, coordinate, and implement policy on the sci3 entific and technological facets of the relations of the

4 United States with foreign governments and inter5 national organizations and on matters relating to the

6 environment, the oceans, fishing, and space.

7 ‘‘(d) ASSISTANT SECRETARIES REPORTING TO THE

8 UNDER SECRETARY OF STATE FOR INTERNATIONAL SE9 CURITY.—The following Assistant Secretaries of State

10 should be subject to the supervision and policy guidance

11 of the Under Secretary of State for International Security

12 and should have the following responsibilities:

13 ‘‘(1) ASSISTANT SECRETARY FOR ARMS CON14 TROL AND NON-PROLIFERATION AFFAIRS.—(A)

15 There shall be an Assistant Secretary of State for

16 Arms Control and Non-Proliferation Affairs who

17 shall—

18 ‘‘(i) develop and coordinate policy on non19 proliferation of weapons of mass destruction

20 (including nuclear, chemical, and biological

21 weapons and missile technology) and nuclear

22 and conventional arms control; and

23 ‘‘(ii) prepare for and operate United States

24 participation in international control systems
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1 that may result from United States arms con2 trol activities.

3 ‘‘(B) DEPUTY ASSISTANT SECRETARIES.—(i)

4 There shall be four Deputy Assistant Secretaries of

5 State who shall report to the Assistant Secretary of

6 State for Arms Control and Non-Proliferation Af7 fairs for the following matters, respectively:

8 ‘‘(I) Verification of compliance with arms

9 control agreements (including memoranda of

10 understanding).

11 ‘‘(II) Conventional arms control.

12 ‘‘(III) Nuclear nonproliferation.

13 ‘‘(IV) Control of weapons of mass destruc14 tion.

15 ‘‘(ii) One such Deputy Assistant Secretary shall

16 serve as the principal Deputy to the Assistant Sec17 retary.

18 ‘‘(2) ASSISTANT SECRETARY FOR INTER19 NATIONAL NARCOTICS AND LAW ENFORCEMENT AF20 FAIRS.—There should be an Assistant Secretary of

21 State for International Narcotics and Law Enforce22 ment Affairs who should—

23 ‘‘(A) develop, coordinate, and implement

24 international narcotics assistance activities dele25 gated to the Secretary of State under chapter
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1 8 of part I of the Foreign Assistance Act of

2 1961 (22 U.S.C. 2291 et seq.);

3 ‘‘(B) serve as principal point of contact

4 and provide advice on international narcotics

5 control matters for the Office of Management

6 and Budget, the National Security Council, and

7 the Executive Office of the President to ensure

8 implementation of United States policy in nar9 cotics matters; and

10 ‘‘(C) carry out international law enforce11 ment activities of the Department of State

12 under the International Narcotics Control Cor13 rection Act of 1994, including—

14 ‘‘(i) promoting law enforcement and

15 policy initiatives bilaterally or multilater16 ally which are of high priority to the na17 tional interest of the United States;

18 ‘‘(ii) promoting improved coordination

19 among United States policy and law en20 forcement agencies for their activities out21 side the United States; and

22 ‘‘(iii) developing law enforcement

23 training programs to strengthen and sta24 bilize democracies throughout the world.
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1 ‘‘(3) ASSISTANT SECRETARY FOR POLITICAL2 MILITARY AFFAIRS.—There should be an Assistant

3 Secretary of State for Political-Military Affairs who

4 should—

5 ‘‘(A) serve as the Department’s primary li6 aison with the Department of Defense;

7 ‘‘(B) seek to further United States na8 tional security objectives by—

9 ‘‘(i) stabilizing regional military bal10 ances through negotiations and security as11 sistance;

12 ‘‘(ii) maintaining global access for

13 United States military forces;

14 ‘‘(iii) inhibiting the access by adver15 saries to militarily significant technologies;

16 and

17 ‘‘(iv) promoting responsible United

18 States defense trade; and

19 ‘‘(C) coordinate with the Department of

20 Defense on issues involving United States par21 ticipation in United Nations peacekeeping ac22 tivities.

23 ‘‘(4) ASSISTANT SECRETARY FOR HUMANI24 TARIAN ASSISTANCE, REFUGEES, AND MIGRATION

25 AFFAIRS.—There should be an Assistant Secretary
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1 of State for Humanitarian Assistance, Refugees, and

2 Migration Affairs who should—

3 ‘‘(A) recommend and implement policy on

4 humanitarian assistance and refugee and mi5 gration affairs;

6 ‘‘(B) operate United States refugee pro7 grams abroad, carried out in cooperation with

8 other governments, private and international or9 ganizations, and other United States govern10 ment agencies;

11 ‘‘(C) carry out programs relating to the re12 lief and repatriation of refugees, and the selec13 tion and processing of refugees to be admitted

14 to the United States;

15 ‘‘(D) implement abroad United States pro16 grams for disaster preparedness, relief, and re17 habilitation, incorporating activities previously

18 carried out by the Office of Foreign Disaster

19 Assistance of the Agency for International De20 velopment; and

21 ‘‘(E) function as primary coordination

22 point for United States’ international humani23 tarian emergency response efforts.

24 ‘‘(e) ASSISTANT SECRETARIES REPORTING TO THE

25 UNDER SECRETARY OF STATE FOR PUBLIC DIPLO-
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1 MACY.—Except as provided in paragraph (2), the follow2 ing Assistant Secretary of State and officials of the De3 partment of State should be subject to the supervision and

4 policy guidance of the Under Secretary of State for Public

5 Diplomacy and should have the following responsibilities:

6 ‘‘(1) ASSISTANT SECRETARY FOR INTER7 NATIONAL EXCHANGES.—

8 ‘‘(A) IN GENERAL.—There shall be an As9 sistant Secretary of State for International Ex10 changes who shall—

11 ‘‘(i) administer programs carried out

12 under the Mutual Educational and Cul13 tural Exchange Act of 1961 (Public Law

14 87–256) so as to ensure that such pro15 grams support United States interests

16 abroad and reflect the values of the people

17 of the United States;

18 ‘‘(ii) develop and implement policy for,

19 and provide professional guidance, mate20 rials, and other program support to, the li21 braries and binational centers of the De22 partment of State abroad;

23 ‘‘(iii) administer fine arts programs

24 and performing arts programs abroad, in25 cluding arranging for tours abroad of
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1 United States performing arts groups and

2 fine arts exhibitions; and

3 ‘‘(iv) develop and implement other

4 programs in support of United States in5 terests abroad, including programs for the

6 identification and recruitment of individ7 uals to speak of such interests abroad and

8 for establishing links between United

9 States and foreign cultural institutions.

10 ‘‘(B) OFFICE OF THE ASSISTANT SEC11 RETARY.—There shall be within the Office of

12 the Assistant Secretary of State for Inter13 national Exchanges the Office of Program Co14 ordination. The Secretary of State, acting

15 through the Office, shall be responsible for

16 tracking identification and coordination of all

17 United States Government sponsored non18 military international exchange programs. The

19 Office shall be charged to identify and make

20 recommendations to the President on programs

21 that are duplicative and, therefore, should be

22 eliminated.

23 ‘‘(2) CHAIRMAN OF THE BROADCASTING BOARD

24 OF GOVERNORS AND THE DIRECTOR OF THE INTER25 NATIONAL BROADCASTING OFFICE.—The Chairman
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1 of the Broadcasting Board of Governors and the Di2 rector of the International Broadcasting Office shall

3 have the responsibilities set forth for those positions

4 in title III of the Foreign Relations Authorization

5 Act, Fiscal Years 1994 and 1995.

6 ‘‘(f) ASSISTANT SECRETARIES REPORTING TO THE

7 UNDER SECRETARY OF STATE FOR MANAGEMENT.—The

8 following Assistant Secretaries of State should be subject

9 to the supervision and policy guidance of the Under Sec10 retary of State for Management and should have the fol11 lowing responsibilities:

12 ‘‘(1) ASSISTANT SECRETARY FOR CONSULAR

13 AFFAIRS.—There should be an Assistant Secretary

14 of State for Consular Affairs who should develop, co15 ordinate, and implement policy relating to the pro16 tection and welfare of United States citizens and in17 terests abroad, the issuance of passports and visas,

18 and the provision of other consular services.

19 ‘‘(2) ASSISTANT SECRETARY FOR ADMINISTRA20 TION.—There should be an Assistant Secretary of

21 State for Administration who should—

22 ‘‘(A) develop, coordinate, and implement

23 policy, programs, and activities for the provision

24 of administrative support for the Department of

25 State, including support for building operations
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1 of the Department in the United States and

2 abroad, support for information management,

3 support for telecommunications, support for the

4 Diplomatic Contingency Program of the De5 partment, support for travel abroad by the

6 President and the Vice President, and support

7 for schools for dependents of Department per8 sonnel abroad;

9 ‘‘(B) manage acquisition activities of the

10 Department in the United States;

11 ‘‘(C) oversee acquisition activities of the

12 Department abroad;

13 ‘‘(D) ensure the provision of supply and

14 transportation services to the Department; and

15 ‘‘(E) ensure the provision of language serv16 ices for the Secretary of State, the Executive

17 Office of the President, and other officials of

18 the Federal Government.

19 ‘‘(3) ASSISTANT SECRETARY FOR DIPLOMATIC

20 SECURITY.—There should be an Assistant Secretary

21 of State for Diplomatic Security who should—

22 ‘‘(A) develop, coordinate, and implement

23 policy for the purpose of ensuring the security

24 of personnel who conduct United States diplo-
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1 macy and promote United States interests

2 abroad;

3 ‘‘(B) assign security personnel to posts

4 abroad for the purpose referred to in subpara5 graph (A);

6 ‘‘(C) carry out the duties set forth in the

7 Omnibus Diplomatic Security Act of 1986 (22

8 U.S.C. 4801 et seq.); and

9 ‘‘(D) administer through the Office of For10 eign Missions, the authorities relating to the

11 regulation of foreign missions under title II of

12 this Act.

13 ‘‘(g) POSITIONS REPORTING TO THE SECRETARY OF

14 STATE.—There should be in the Department of State, the

15 following officials who should be appointed by the Presi16 dent, by and with the advice and consent of the Senate,

17 and who should report to the Secretary of State and who

18 should have the following responsibilities:

19 ‘‘(1) ASSISTANT SECRETARY OF STATE FOR IN20 TELLIGENCE AND STRATEGIC PLANS.—There should

21 be an Assistant Secretary of State for Intelligence

22 and Strategic Plans, who should—

23 ‘‘(A) provide the Secretary, the Deputy

24 Secretary, and Department principals with in25 telligence information, briefings, analysis, and
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1 coordination necessary to carry out the Presi2 dent’s foreign policy;

3 ‘‘(B) serve as primary adviser to the Sec4 retary of State and intelligence briefer for sen5 ior Department policymakers;

6 ‘‘(C) undertake strategic (medium- and

7 long-term) policy studies and analyses, and

8 keep policymakers aware of strategic trends in

9 areas of current or potential policy interest’’;

10 and

11 ‘‘(D) provide the intelligence community

12 guidance as necessary to help ensure products

13 are focused adequately to support policymakers.

14 ‘‘(2) ASSISTANT SECRETARY OF STATE FOR

15 LEGISLATIVE AFFAIRS.—There should be an Assist16 ant Secretary of State for Legislative Affairs, who

17 should—

18 ‘‘(A) supervise and coordinate all foreign

19 affairs-related legislative activities within the

20 Department of State and among the Depart21 ment, Congress, and other agencies;

22 ‘‘(B) supervise and coordinate all personnel

23 of the Department who are designated or as24 signed legislative responsibilities and who
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1 should report to the Assistant Secretary of

2 State for Legislative Affairs;

3 ‘‘(C) ensure that congressional perspectives

4 are considered in the foreign policymaking proc5 ess, that the administration’s views are accu6 rately presented to Congress, and that a coordi7 nated legislative strategy is implemented by ex8 ecutive branch agencies; and

9 ‘‘(D) be responsible for rating and review10 ing all employees of any bureau whose duties

11 comprise primarily of legislative matters.’’.

12 (b) ASSUMPTION OF DUTIES BY INCUMBENT AP13 POINTEES.—An individual holding an office immediately

14 prior to the date of enactment of this Act—

15 (1) who was appointed to the office by the

16 President, by and with the advice and consent of the

17 Senate; and

18 (2) who performs duties substantially similar to

19 the duties of an office created or proposed to be cre20 ated under section 1B of the State Department

21 Basic Authorities Act of 1956,

22 may, in the discretion of the Secretary of State, assume

23 the duties of such new office, and shall not be required

24 to be reappointed by reason of the enactment of that sec25 tion.
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1 SEC. 2474. OTHER STATE DEPARTMENT POSITIONS.

2 (a) AMENDMENT TO STATE DEPARTMENT BASIC AU3 THORITIES ACT.—Section 1B of the State Department

4 Basic Authorities Act of 1956, as added by this Act, is

5 amended by adding at the end the following new section:

6 ‘‘SEC. 1C. OTHER STATE DEPARTMENT POSITIONS.

7 ‘‘(a) GENERAL COUNSEL.—

8 ‘‘(1) There should be a General Counsel, who

9 should be appointed by the President, by and with

10 the advice and consent of the Senate, who should be

11 paid at the rate provided for positions at level IV of

12 the Executive Schedule, and who should—

13 ‘‘(A) serve as principal adviser to the Sec14 retary and, through the Secretary, to the Presi15 dent on all matters of international law arising

16 in the conduct of United States foreign rela17 tions; and

18 ‘‘(B) provide general legal advice and serv19 ices to the Secretary and other officials of the

20 Department on matters with which the Depart21 ment and overseas posts are concerned.

22 ‘‘(2) The General Counsel should assume the

23 functions previously exercised by the Legal Adviser.

24 ‘‘(b) POSITIONS REPORTING TO THE UNDER SEC25 RETARY OF STATE FOR MANAGEMENT.—The following of-
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1 ficials within the Department of State should report di2 rectly to the Under Secretary of State for Management:

3 ‘‘(1) CHIEF FINANCIAL OFFICER.—There is in

4 the Department of State a Chief Financial Officer

5 who is appointed and paid in accordance with sec6 tion 901 of title 31, United States Code, and who

7 shall—

8 ‘‘(A) serve as the Department’s Budget

9 Officer and shall manage the financial affairs of

10 the Department, consistent with section 902 of

11 title 31, United States Code;

12 ‘‘(B) ensure adequate systems within the

13 Department for the production of reliable and

14 timely financial and related programmatic in15 formation;

16 ‘‘(C) develop financial analysis and per17 formance reports regarding the activities of the

18 Department; and

19 ‘‘(D) integrate functions of the Depart20 ment related to budget execution and financial

21 accounting.

22 ‘‘(2) DIRECTOR GENERAL OF THE FOREIGN

23 SERVICE.—There should be a Director General of

24 the Foreign Service who should be appointed by the

25 President, by and with the advice and consent of the
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1 Senate, and who should be paid at the rate of pay

2 provided for positions at level IV of the Executive

3 Schedule. The Director General should—

4 ‘‘(A) act as principal advisor to the Sec5 retary of State on all matters relating to the

6 Foreign Service, including matters relating to

7 recruitment, training, professional development,

8 assignment, and utilization of Foreign Service

9 personnel;

10 ‘‘(B) provide joint training for all such

11 personnel and ensure the assignment of such

12 personnel to positions that require and provide

13 experience in a variety of disciplines; and

14 ‘‘(C) perform such functions in connection

15 with the administration of the Foreign Service

16 as the Secretary of State may prescribe.

17 ‘‘(3) DIRECTOR OF PERSONNEL.—There should

18 be within the Department of State a Director of

19 Personnel who should be appointed by the President,

20 by and with the advice and consent of the Senate,

21 and who should be paid at the rate of pay provided

22 for positions at level IV of the Executive Schedule.

23 The Director of Personnel should—

24 ‘‘(A) implement policies and programs for

25 personnel of the Department of State, including
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1 personnel under the Civil Service system, per2 sonnel under the Foreign Service System (in

3 consultation with the Director General for the

4 Foreign Service), and personnel who are For5 eign Service National employees; and

6 ‘‘(B) oversee activities of the National Cen7 ter for Humanities, Education, Languages, and

8 Management Studies.’’.

9 (b) CONFORMING REPEAL.—Section 208 of the For10 eign Service Act of 1980 (22 U.S.C. 3928), relating to

11 the Director General of the Foreign Service, is repealed.

12 (c) ASSUMPTION OF DUTIES BY INCUMBENT AP13 POINTEES.—An individual holding an office immediately

14 prior to the date of enactment of this Act—

15 (1) who was appointed to the office by the

16 President, by and with the advice and consent of the

17 Senate; and

18 (2) who performs duties substantially similar to

19 the duties of an office created or proposed to be cre20 ated under section 1C of the State Department

21 Basic Authorities Act of 1956,

22 may, at the discretion of the Secretary of State, assume

23 the duties of such new office, and shall not be required

24 to be reappointed by reason of the enactment of that

25 section.
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1 SEC. 2475. INSPECTOR GENERAL FOR FOREIGN AFFAIRS.

2 (a) TERM OF SERVICE; LIMITATION ON APPOINT3 MENT.—Section 209(a)(1) of the Foreign Service Act of

4 1980 (22 U.S.C. 3929) is amended—

5 (1) in the first sentence, by striking ‘‘Inspector

6 General of the Department of State and the Foreign

7 Service’’ and inserting ‘‘Inspector General for For8 eign Affairs’’; and

9 (2) by inserting after the first sentence the fol10 lowing new sentences: ‘‘The Inspector General shall

11 serve a term of six years. The Inspector General

12 may be reappointed by the President, by and with

13 the advice and consent of the Senate, for an addi14 tional term or terms of six years each. No career

15 member of the Foreign Service, as defined in section

16 103, may be appointed Inspector General.’’.

17 (b) REDESIGNATION OF INSPECTOR GENERAL OF

18 THE DEPARTMENT OF STATE AS INSPECTOR GENERAL

19 FOR FOREIGN AFFAIRS.—(1) The Inspector General Act

20 of 1978 (5 U.S.C. App. 3) is amended—

21 (A) by redesignating section 8G (as added by

22 section 104(a) of Public Law 100–504) and section

23 8G (as added by section 105 of Public Law 100–

24 504) as sections 8H and 8I, respectively; and

25 (B) by inserting after section 8F the following:
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1 ‘‘SPECIAL PROVISIONS RELATING TO THE INSPECTOR

2 GENERAL FOR FOREIGN AFFAIRS

3 ‘‘SEC. 8G. In addition to the other duties and respon4 sibilities specified in this Act, the Inspector General of the

5 Department of State (also known as the ‘Inspector Gen6 eral for Foreign Affairs’) shall exercise the authorities of

7 section 209 of the Foreign Service Act of 1980 (including

8 authorities with respect to the Broadcasting Board of Gov9 ernors).’’.

10 (2) Section 5315 of title 5, United States Code, is

11 amended by striking ‘‘Inspector General, Department of

12 State’’ and inserting ‘‘Inspector General for Foreign

13 Affairs, Department of State’’.

14 (3) Section 413 of the Omnibus Diplomatic Security

15 and Antiterrorism Act of 1986 (22 U.S.C. 4861) is re16 pealed.

17 (c) REPEAL RELATING TO THE INSPECTOR GENERAL

18 FOR THE UNITED STATES ARMS CONTROL AND DISAR19 MAMENT AGENCY.—Section 50 of the Arms Control and

20 Disarmament Act (22 U.S.C. 2593a), relating to the

21 ACDA Inspector General, is repealed.

22 (d) CONFORMING AMENDMENTS RELATING TO THE

23 INSPECTOR GENERAL OF THE UNITED STATES INFORMA24 TION AGENCY.—(1) Section 11 of the Inspector General

25 Act of 1978 (5 U.S.C. App. 3) is amended—
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1 (A) in paragraph (1), by striking ‘‘or the

2 United States Information Agency’’; and

3 (B) in paragraph (2), by striking ‘‘the United

4 States Information Agency,’’.

5 (2) Section 5315 of title 5, United States Code, is

6 amended by striking ‘‘Inspector General, United States

7 Information Agency.’’

8 (e) CONFORMING AMENDMENTS AND REPEAL RE9 LATING TO THE INSPECTOR GENERAL OF THE AGENCY

10 FOR INTERNATIONAL DEVELOPMENT.—(1) Section 11 of

11 the Inspector General Act of 1978 (5 U.S.C. App. 3) is

12 amended—

13 (A) in paragraph (1), by striking ‘‘Agency for

14 International Development,’’; and

15 (B) in paragraph (2), by striking ‘‘the Agency

16 for International Development,’’.

17 (2) Section 239(e) of the Foreign Assistance Act of

18 1961 (22 U.S.C. 2199(e)) is amended by striking ‘‘Inspec19 tor General of the Agency for International Development’’

20 and inserting ‘‘Inspector General for Foreign Affairs’’.

21 (3) Section 8A of the Inspector General Act of 1978

22 (5 U.S.C. App. 3) is repealed.

23 (4) Section 5315 of title 5, United States Code, is

24 amended by striking ‘‘Inspector General, Agency for Inter25 national Development.’’.
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1 (f) ASSUMPTION OF DUTIES BY INCUMBENT AP2 POINTEE.—An individual holding the office of Inspector

3 General of the Department of State immediately prior to

4 the effective date contained in subsection (g)(4)—

5 (1) who was appointed to the office by the

6 President, by and with the advice and consent of the

7 Senate; and

8 (2) who performs duties substantially similar to

9 the duties of an office created under the amend10 ments made by subsections (a) and (b),

11 may, in the discretion of the Secretary of State, assume

12 the duties of such new office, and shall not be required

13 to be reappointed by reason of the enactment of this

14 section.

15 (g) EFFECTIVE DATES.—The following shall be the

16 effective dates for amendments and repeals made by this

17 section:

18 (1) The repeal made by subsection (c), on the

19 effective date of title XII.

20 (2) The amendments made by subsection (d),

21 on the effective date of title XIII.

22 (3) The amendments and repeal made by sub23 section (e), on the effective date of title XIV.
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1 (4) The amendments and repeal made by sub2 sections (a) and (b), on the effective date of title

3 XII, title XIII, or title XIV, whichever occurs first.

4 SEC. 2476. RATES OF PAY.

5 (a) UNDER SECRETARIES OF STATE.—Section 5314

6 of title 5, United States Code, is amended by striking

7 ‘‘Under Secretaries of State (5).’’ and inserting the follow8 ing:

9 ‘‘Under Secretary of State for Policy.

10 ‘‘Under Secretary of State for Export, Trade,

11 Economics, and Business.

12 ‘‘Under Secretary of State for International

13 Security.

14 ‘‘Under Secretary of State for Public Diplo15 macy.

16 ‘‘Under Secretary of State for Management.’’.

17 (b) ASSISTANT SECRETARIES OF STATE.—Section

18 5315 of such title is amended by striking out ‘‘20 Assist19 ant Secretaries of State and 4 other State Department

20 officials to be appointed by the President by and with the

21 advice and consent of the Senate.’’ and inserting the fol22 lowing:

23 ‘‘In addition to other positions of the Depart24 ment of State specifically referenced in this section,

25 18 Assistant Secretaries of State and 4 other State
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1 Department officials who are appointed by the Presi2 dent, by and with the advice and consent of the

3 Senate.

4 ‘‘Assistant Secretary of State for Arms Control

5 and Non-Proliferation Affairs.

6 ‘‘Assistant Secretary of State for International

7 Exchanges.’’.

8 SEC. 2477. REPEAL OF PREVIOUSLY CREATED STATE DE9 PARTMENT POSITIONS.

10 (a) ASSISTANT SECRETARY FOR OCEANS AND INTER11 NATIONAL ENVIRONMENTAL AND SCIENTIFIC AFFAIRS.—

12 Section 9(a) of the Department of State Appropriations

13 Authorization Act of 1973 (22 U.S.C. 2655a(a)) is re14 pealed.

15 (b) CONFORMING AMENDMENTS RELATING TO THE

16 ASSISTANT SECRETARY FOR DEMOCRACY, HUMAN

17 RIGHTS, AND LABOR.—The Foreign Assistance Act of

18 1961 is amended—

19 (1) in section 116(c) (22 U.S.C. 2151n(c)), by

20 striking ‘‘Assistant Secretary of State for Democ21 racy, Human Rights, and Labor’’ and inserting

22 ‘‘Secretary’’;

23 (2) in sections 502B(b) (22 U.S.C. 2304(b)),

24 502B(c)(1) (22 U.S.C. 2304(c)), and 505(g)(4)(A)

25 (22 U.S.C. 2314(g)(4)(A)), by striking ‘‘, prepared
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1 with the assistance of the Assistant Secretary of

2 State for Democracy, Human Rights, and Labor,’’

3 each place it appears; and

4 (3) in section 573(c) (22 U.S.C. 2349aa–2(c)),

5 by striking ‘‘Assistant Secretary of State for Democ6 racy, Human Rights, and Labor’’ and inserting

7 ‘‘Secretary of State’’.

8 (c) ASSISTANT SECRETARY FOR SOUTH ASIAN AF9 FAIRS.—Subsections (a), (b), and (e) of section 122 of the

10 Foreign Relations Authorization Act, Fiscal Years 1992

11 and 1993 (22 U.S.C. 2652b) are repealed.

12 (d) DEPUTY ASSISTANT SECRETARY FOR

13 BURDENSHARING.—Section 161(f) of the Foreign Rela14 tions Authorization Act, Fiscal Years 1994 and 1995 (22

15 U.S.C. 2651a note) is repealed.

16 SEC. 2478. LIMITATION ON PERSONNEL STRENGTH OF THE

17 DEPARTMENT OF STATE.

18 (a) END FISCAL YEAR 1996 LEVELS.—The number

19 of employees of the Department of State (including mem20 bers of the Foreign Service) who are authorized to be em21 ployed as of February 28, 1997, shall not exceed a number

22 which is 9 percent less than the number of such employees

23 who are so employed immediately prior to the date of en24 actment of this Act.
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1 (b) END FISCAL YEAR 1997 LEVELS.—The number

2 of employees of the Department of State (including mem3 bers of the Foreign Service) who are authorized to be em4 ployed as of September 30, 1997, shall not exceed a num5 ber which is 3 percent less than the number of such em6 ployees who are authorized to be so employed as of Feb7 ruary 28, 1997.

8 (c) END FISCAL YEAR 1998 LEVELS.—The number

9 of employees of the Department of State (including mem10 bers of the Foreign Service) who are authorized to be em11 ployed as of September 30, 1998, shall not exceed a num12 ber which is 2 percent less than the number of such em13 ployees who are authorized to be so employed as of Sep14 tember 30, 1997.

15 SEC. 2479. CONSOLIDATION OF UNITED STATES DIPLO16 MATIC MISSIONS AND CONSULAR POSTS.

17 (a) CONSOLIDATION PLAN.—The Secretary of State

18 shall develop a worldwide plan for the consolidation, wher19 ever practicable, on a regional or areawide basis, of United

20 States missions and consular posts abroad in order to

21 carry out this section.

22 (b) CONTENTS OF PLAN.—The plan shall—

23 (1) identify the specific United States diplo24 matic missions and consular posts for consolidation;
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1 (2) identify those missions and posts at which

2 the resident ambassador would also be accredited to

3 other specified states in which the United States ei4 ther maintained no resident official presence or

5 maintained such a presence only at staff level; and

6 (3) provide an estimate of—

7 (A) the amount by which expenditures

8 would be reduced through the reduction in the

9 number of United States Government personnel

10 assigned abroad;

11 (B) the amount by which expenditures

12 would be reduced through a reduction in the

13 costs of maintaining United States properties

14 abroad; and

15 (C) the amount of revenues generated to

16 the United States through the sale or other dis17 position of United States properties associated

18 with the posts to be consolidated abroad.

19 (c) TRANSMITTAL.—Not later than 180 days after

20 the date of enactment of this Act, the Secretary of State

21 shall transmit a copy of the plan to the appropriate con22 gressional committees.

23 (d) IMPLEMENTATION.—Not later than 60 days after

24 transmittal of the plan under subsection (c), the Secretary

25 of State shall take steps to implement the plan unless the
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1 Congress before such date enacts legislation disapproving

2 the plan.

3 (e) CONGRESSIONAL PRIORITY PROCEDURES.—(1) A

4 joint resolution described in paragraph (2) which is intro5 duced in a House of Congress after the date on which a

6 plan developed under subsection (a) is received by Con7 gress, shall be considered in accordance with the proce8 dures set forth in paragraphs (3) through (7) of section

9 8066(c) of the Department of Defense Appropriations Act,

10 1985 (as contained in Public Law 98–473 (98 Stat.

11 1936)), except that—

12 (A) references to the ‘‘report described in para13 graph (1)’’ shall be deemed to be references to the

14 joint resolution; and

15 (B) references to the Committee on Appropria16 tions of the House of Representatives and to the

17 Committee on Appropriations of the Senate shall be

18 deemed to be references to the Committee on Inter19 national Relations of the House of Representatives

20 and the Committee on Foreign Relations of the Sen21 ate.

22 (2) A joint resolution under this paragraph is a joint

23 resolution the matter after the resolving clause of which

24 is as follows: ‘‘That the Congress disapproves the plan

25 submitted by the President on llllll pursuant to
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1 section 2409 of the Restructuring a Limited Government

2 Act.’’.

3 (f) WITHHOLDING OF FUNDS.—Effective 180 days

4 after the date of enactment of this Act, if the plan was

5 not timely transmitted pursuant to subsection (c), then

6 five percent of the funds made available for the Depart7 ment of State for each of the fiscal years 1996, 1997,

8 1998, and 1999 under the account ‘‘Diplomatic and Con9 sular Programs’’ (‘‘Administration of Foreign Affairs’’)

10 shall be withheld from obligation and expenditure until 60

11 days after the President transmits to Congress a revised

12 plan developed under subsection (a).

13 (g) RESUBMISSION OF PLAN.—If, within 60 days of

14 transmittal of a plan under subsection (c), Congress en15 acts legislation disapproving the plan, the President shall

16 transmit to the appropriate congressional committees a re17 vised plan developed under subsection (a).

18 (h) STATUTORY CONSTRUCTION.—Nothing in this

19 section requires the termination of United States diplo20 matic or consular relations with any foreign country.

21 (i) DEFINITIONS.—As used in this section:

22 (1) APPROPRIATE CONGRESSIONAL COMMIT23 TEES.—The term ‘‘appropriate congressional com24 mittees’’ means the Committee on International Re-
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1 lations of the House of Representatives and the

2 Committee on Foreign Relations of the Senate.

3 (2) PLAN.—The term ‘‘plan’’ means the plan

4 developed under subsection (a).

5 SEC. 2480. DETAIL OF OTHER AGENCY PERSONNEL TO

6 STATE DEPARTMENT.

7 Any employee of any agency other than the Depart8 ment of State who is assigned to an overseas post located

9 within any United States mission except for those assigned

10 to a military command shall be detailed to the Department

11 of State for the duration of such assignment, and shall

12 be fully under the authority of the Chief of Mission. The

13 Chief of Protocol, at the sole discretion of the Secretary

14 of State, shall accord diplomatic titles, privileges, and im15 munities to any such employees as the Secretary of State

16 deems appropriate.

17 SEC. 2481. REPORT ON UNIFICATION OF UNITED STATES

18 AND FOREIGN COMMERCIAL SERVICE AND

19 FOREIGN AGRICULTURAL SERVICE WITHIN

20 THE FOREIGN SERVICE.

21 (a) REQUIREMENT.—Not later than 120 days after

22 the date of the enactment of this Act, the President shall,

23 in coordination with the Secretary of State, the Secretary

24 of Commerce, and the Secretary of Agriculture shall joint-
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1 ly transmit to Congress the report described in subsection

2 (b).

3 (b) REPORT ELEMENTS.—The report under sub4 section (a) shall include the following:

5 (1) An assessment of the extent of the coordi6 nation and cooperation in international activities of

7 the Department of State, the Department of Com8 merce, and the Department of Agriculture.

9 (2) An assessment of the advisability and desir10 ability of establishing in the Foreign Service of the

11 Department of State a core discipline relating to the

12 commercial, trade development, and export pro13 motion activities of the United States.

14 (3) If such a core discipline is desirable—

15 (A) a discussion of the options for estab16 lishing the core discipline, including—

17 (i) the integration of the United

18 States and Foreign Commercial Service

19 and the Foreign Agricultural Service into

20 the Foreign Service; and

21 (ii) the continuation of the United

22 States and Foreign Commercial Service

23 and the Foreign Agricultural Service as

24 separate services; and
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1 (B) an assessment of the advantages and

2 disadvantages (including the costs and savings)

3 of each such option.

4 (4) If such a core discipline is not desirable, an

5 assessment of the advisability and desirability of the

6 continuing application of the Foreign Service Act of

7 1980 to the United States and Foreign Commercial

8 Service and the Foreign Agricultural Service.

9 TITLE III—SCIENCE, SPACE, AND

10 TECHNOLOGY

11 Subtitle A—Administrative and

12 Research Savings

13 SEC. 3001. NUCLEAR ENERGY RESEARCH AND DEVELOP14 MENT.

15 There are authorized to be appropriated to the Sec16 retary of Energy for carrying out the Department’s nu17 clear energy research and development activities—

18 (1) $331,000,000 for fiscal year 1996;

19 (2) $331,000,000 for fiscal year 1997;

20 (3) $331,000,000 for fiscal year 1998;

21 (4) $331,000,000 for fiscal year 1999; and

22 (5) $331,000,000 for fiscal year 2000.
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1 SEC. 3002. NATIONAL SCIENCE FOUNDATION GRANT APPLI2 CATION FEE.

3 The National Science Foundation shall require that

4 any application for a grant submitted to it be accompanied

5 by a $50 application fee, which shall be deposited in the

6 general fund of the Treasury.

7 SEC. 3003. HIGH PERFORMANCE COMPUTING PROGRAM.

8 The total amount which may be appropriated for all

9 activities under the High Performance Computing Act of

10 1991 shall not exceed $865,500,000 for each of the fiscal

11 years 1996 through 2000.

12 Subtitle B—Specific Program

13 Reforms

14 SEC. 3011. NATIONAL SCIENCE FOUNDATION.

15 There are authorized to be appropriated to the Na16 tional Science Foundation for all activities of the National

17 Science Foundation—

18 (1) $337,620,000 for fiscal year 1996;

19 (2) $344,372,400 for fiscal year 1997;

20 (3) $351,259,848 for fiscal year 1998;

21 (4) $358,285,044 for fiscal year 1999; and

22 (5) $365,450,754 for fiscal year 2000.

23 SEC. 3012. SPACE STATION.

24 The Administrator of the National Aeronautics and

25 Space Administration may not enter into any contract in
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1 furtherance of a space station program. This section shall

2 cease to be effective after September 30, 1999.

3 SEC. 3013. CANCELLATION OF NATIONAL AEROSPACE

4 PLANE.

5 The Secretary of Defense and the Administrator of

6 the National Aeronautics and Space Administration shall

7 cancel the National Aerospace Plane program. No amount

8 may be obligated for that program after the date of the

9 enactment of this Act, except for required contract termi10 nation costs.

11 TITLE IV—ENERGY

12 Subtitle A—Abolishment of

13 Department of Energy

14 SEC. 4001. SHORT TITLE.

15 This subtitle may be cited as the ‘‘Department of En16 ergy Abolishment Act’’.

17 CHAPTER 1—ABOLISHMENT OF

18 DEPARTMENT OF ENERGY

19 SEC. 4011. REESTABLISHMENT OF DEPARTMENT AS EN20 ERGY PROGRAMS RESOLUTION AGENCY.

21 (a) REESTABLISHMENT.—The Department of En22 ergy is hereby redesignated as the Energy Programs Reso23 lution Agency, which shall be an independent agency in

24 the executive branch of the Government.

25 (b) ADMINISTRATOR.—
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1 (1) IN GENERAL.—There shall be at the head

2 of the Agency an Administrator of the Agency, who

3 shall be appointed by the President, by and with the

4 advice and consent of the Senate. The Agency shall

5 be administered under the supervision and direction

6 of the Administrator. The Administrator shall re7 ceive compensation at the rate prescribed for level II

8 of the Executive Schedule under section 5313 of title

9 5, United States Code.

10 (2) INITIAL APPOINTMENT OF ADMINIS11 TRATOR.—Notwithstanding any other provision of

12 this subtitle or any other law, the President may, at

13 any time after the date of the enactment of this Act,

14 appoint an individual to serve as Administrator of

15 the Energy Programs Resolution Agency (who may

16 be the Secretary of Energy), as such position is es17 tablished under paragraph (1). An appointment

18 under this paragraph may not be construed to affect

19 the position of Secretary of Energy or the authority

20 of the Secretary before the effective date specified in

21 section 4019(a).

22 (c) DUTIES.—The Administrator shall be responsible

23 for—

24 (1) the administration and wind-up, during the

25 wind-up period, of all functions of the Administrator
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1 pursuant to section 4012 and the other provisions of

2 this subtitle;

3 (2) the administration and wind-up, during the

4 wind-up period, of any outstanding obligations of the

5 Federal Government under any programs terminated

6 or repealed by this subtitle; and

7 (3) taking such other actions as may be nec8 essary, before the termination date, to wind up any

9 outstanding affairs of the Department of Energy.

10 SEC. 4012. FUNCTIONS.

11 Except as otherwise provided in this subtitle, the Ad12 ministrator shall perform all functions that, immediately

13 before the effective date of this section, were functions of

14 the Department of Energy (or any office of the Depart15 ment) or were performed by the Secretary of Energy or

16 any other officer or employee of the Department in the

17 capacity as such officer or employee.

18 SEC. 4013. DEPUTY ADMINISTRATOR.

19 The Agency shall have a Deputy Administrator, who

20 shall—

21 (1) be appointed by and report to the Adminis22 trator; and

23 (2) shall perform such functions as may be del24 egated by the Administrator.
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1 SEC. 4014. CONTINUATION OF SERVICE OF DEPARTMENT

2 OFFICERS.

3 (a) CONTINUATION OF SERVICE OF SECRETARY.—

4 The individual serving on the effective date specified in

5 section 4019(a) as the Secretary of Energy may serve and

6 act as Administrator until the date an individual is ap7 pointed under this chapter to the position of Adminis8 trator, or until the end of the 120-day period provided for

9 in section 3348 of title 5, United States Code (relating

10 to limitations on the period of time a vacancy may be filled

11 temporarily), whichever is earlier.

12 (b) CONTINUATION OF SERVICE OF OTHER OFFI13 CERS.—An individual serving on the effective date speci14 fied in section 4019(a) as an officer of the Department

15 of Energy other than the Secretary of Energy may con16 tinue to serve and act in an equivalent capacity in the

17 Agency until the date an individual is appointed under this

18 chapter to the position of Administrator, or until the end

19 of the 120-day period provided for in section 3348 of title

20 5, United States Code (relating to limitations on the pe21 riod of time a vacancy may be filled temporarily) with re22 spect to that appointment, whichever is earlier.

23 (c) COMPENSATION FOR CONTINUED SERVICE.—Any

24 person—

25 (1) who acts as the Administrator under sub26 section (a), or
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1 (2) who serves under subsection (b),

2 after the effective date specified in section 4019(a) and

3 before the first appointment of a person as Administrator

4 shall continue to be compensated for so serving at the rate

5 at which such person was compensated before such effec6 tive date.

7 SEC. 4015. REORGANIZATION.

8 The Administrator may allocate or reallocate any

9 function of the Agency pursuant to this subtitle among

10 the officers of the Agency, and may establish, consolidate,

11 alter, or discontinue in the Energy Programs Resolution

12 Agency any organizational entities that were entities of

13 the Department of Energy, as the Administrator considers

14 necessary or appropriate.

15 SEC. 4016. ABOLISHMENT OF ENERGY PROGRAMS RESOLU16 TION AGENCY.

17 (a) IN GENERAL.—Effective on the termination date

18 under subsection (d), the Energy Programs Resolution

19 Agency is abolished.

20 (b) ABOLITION OF FUNCTIONS.—Except for func21 tions transferred or otherwise continued by this subtitle,

22 all functions that, immediately before the termination

23 date, were functions of the Energy Programs Resolution

24 Agency are abolished effective on the termination date.
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1 (c) PLAN FOR WINDING UP AFFAIRS.—Not later

2 than the effective date specified in section 4019(a), the

3 President shall submit to the Congress a plan for winding

4 up the affairs of the Agency in accordance with this sub5 title and not by later than the termination date under sub6 section (d).

7 (d) TERMINATION DATE.—The termination date

8 under this subsection is the date that is 3 years after the

9 date of the enactment of this Act.

10 SEC. 4017. GAO REPORT.

11 Not later than 180 days after the date of enactment

12 of this Act, the Comptroller General of the United States

13 shall submit to the Congress a report which shall include

14 recommendations for the most efficient means of achiev15 ing, in accordance with this subtitle—

16 (1) the complete abolishment of the Depart17 ment of Energy; and

18 (2) the termination or transfer or other con19 tinuation of the functions of the Department of

20 Energy.

21 SEC. 4018. CONFORMING AMENDMENTS.

22 (a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)

23 of title 3, United States Code, is amended by striking

24 ‘‘Secretary of Energy,’’.
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1 (b) EXECUTIVE DEPARTMENTS.—Section 101 of title

2 5, United States Code, is amended by striking the follow3 ing item:

4 ‘‘The Department of Energy.’’.

5 (c) SECRETARY’S COMPENSATION.—Section 5312 of

6 title 5, United States Code, is amended by striking the

7 following item:

8 ‘‘Secretary of Energy.’’.

9 (d) DEPUTY SECRETARY’S COMPENSATION.—Section

10 5313 of title 5, United States Code, is amended by strik11 ing the following item:

12 ‘‘Deputy Secretary of Energy.’’.

13 (e) UNDER SECRETARY’S COMPENSATION.—Section

14 5314 of title 5, United States Code, is amended by strik15 ing the following item:

16 ‘‘Under Secretary, Department of Energy.’’.

17 (f) MISCELLANEOUS OFFICERS’ COMPENSATION.—

18 Section 5315 of title 5, United States Code, is amended—

19 (1) by striking the following items:

20 ‘‘Assistant Secretaries of Energy (8).

21 ‘‘General Counsel of the Department of Energy.

22 ‘‘Administrator, Economic Regulatory Adminis23 tration, Department of Energy.

24 ‘‘Administrator, Energy Information Adminis25 tration, Department of Energy.
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1 ‘‘Inspector General, Department of Energy.

2 ‘‘Director, Office of Energy Research, Depart3 ment of Energy.’’; and

4 (2) by striking the following item:

5 ‘‘Chief Financial Officer, Department of En6 ergy.’’.

7 (g) INSPECTOR GENERAL ACT OF 1978.—The In8 spector General Act of 1978 (5 U.S.C. App.) is amend9 ed—

10 (1) in section 9(a)(1), by striking subparagraph

11 (E);

12 (2) in section 11(1), by striking ‘‘Energy,’’; and

13 (3) in section 11(2), by striking ‘‘Energy,’’;

14 (h) DEPARTMENT OF ENERGY ORGANIZATION

15 ACT.—Effective on the termination date, the following

16 provisions of the Department of Energy Organization Act

17 (42 U.S.C. 7101 et seq.) are repealed:

18 (1) Section 4001.

19 (2) Chapters 1, 2, and 3.

20 SEC. 4019. EFFECTIVE DATE.

21 (a) IN GENERAL.—Except as provided in subsection

22 (b), this chapter shall take effect on the date that is 6

23 months after the date of the enactment of this Act.
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1 (b) PROVISIONS EFFECTIVE ON DATE OF ENACT2 MENT.—The following provisions of this chapter shall take

3 effect on the date of the enactment of this Act:

4 (1) Section 4011(b).

5 (2) Section 4016(c).

6 (3) Section 4017.

7 CHAPTER 2—ENERGY LABORATORY

8 FACILITIES

9 SEC. 4021. ENERGY LABORATORY FACILITIES COMMISSION.

10 (a) ESTABLISHMENT.—There is established an inde11 pendent commission to be known as the ‘‘Energy Labora12 tory Facilities Commission’’, for the purpose of reducing

13 the number of energy laboratories and programs at those

14 laboratories, through reconfiguration, privatization, and

15 closure, while preserving the traditional role the energy

16 laboratories have contributed to the national defense.

17 (b) DUTIES.—The Commission shall carry out the

18 duties specified for the Commission in this chapter.

19 (c) APPOINTMENT.—

20 (1) IN GENERAL.—The Commission shall be

21 composed of 7 members appointed by the President,

22 by and with the advice and consent of the Senate.

23 The President shall transmit to the Senate the

24 nominations for appointment to the Commission not
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1 later than 3 months after the date of the enactment

2 of this Act.

3 (2) CONSULTATION.—In selecting individuals

4 for nominations for appointments to the Commis5 sion, the President should consult with—

6 (A) the Speaker of the House of Rep7 resentatives concerning the appointment of 2

8 members; and

9 (B) the majority leader of the Senate con10 cerning the appointment of 2 members.

11 (3) CHAIRPERSON.—At the time the President

12 nominates individuals for appointment to the Com13 mission, the President shall designate one such indi14 vidual who shall serve as Chairperson of the Com15 mission.

16 (d) TERMS.—The term of each member of the Com17 mission shall expire on the termination of the Commission

18 under subsection (l).

19 (e) MEETINGS.—Each meeting of the Commission,

20 other than meetings in which classified information is to

21 be discussed, shall be open to the public.

22 (f) VACANCIES.—A vacancy in the Commission shall

23 be filled in the same manner as the original appointment.

24 (g) PAY AND TRAVEL EXPENSES.—

25 (1) BASIC PAY.—
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1 (A) PAY OF MEMBERS.—Each member,

2 other than the Chairperson, shall be paid at a

3 rate equal to the daily equivalent of the mini4 mum annual rate of basic pay payable for level

5 IV of the Executive Schedule under section

6 5315 of title 5, United States Code, for each

7 day (including travel time) during which the

8 member is engaged in the actual performance of

9 duties vested in the Commission.

10 (B) PAY OF CHAIRPERSON.—The Chair11 person shall be paid for each day referred to in

12 subparagraph (A) at a rate equal to the daily

13 equivalent of the minimum annual rate of basic

14 pay payable for level III of the Executive

15 Schedule under section 5314 of title 5, United

16 States Code.

17 (2) TRAVEL EXPENSES.—Members shall receive

18 travel expenses, including per diem in lieu of subsist19 ence, in accordance with sections 5702 and 5703 of

20 title 5, United States Code.

21 (h) DIRECTOR.—

22 (1) IN GENERAL.—The Commission shall, with23 out regard to section 5311(b) of title 5, United

24 States Code, appoint a Director who—
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1 (A) has not served as a civilian employee

2 of the Department of Energy during the 2-year

3 period preceding the date of such appointment;

4 (B) has not been an employee of an energy

5 laboratory during the 5-year period preceding

6 the date of such appointment; and

7 (C) has not been an employee of a contrac8 tor operating an energy laboratory during the

9 5-year period preceding the date of such ap10 pointment.

11 (2) PAY.—The Director shall be paid at the

12 rate of basic pay payable for level IV of the Execu13 tive Schedule under section 5315 of title 5, United

14 States Code.

15 (i) STAFF.—

16 (1) APPOINTMENT BY DIRECTOR.—Subject to

17 paragraphs (2) and (3), the Director, with the ap18 proval of the Commission, may appoint and fix the

19 pay of additional personnel.

20 (2) APPLICABILITY OF CERTAIN CIVIL SERVICE

21 LAWS.—The Director may make such appointments

22 without regard to the provisions of title 5, United

23 States Code, governing appointments in the competi24 tive service, and any personnel so appointed may be

25 paid without regard to the provisions of chapter 51
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1 and subchapter III of chapter 53 of that title relat2 ing to classification and General Schedule pay rates,

3 except that an individual so appointed may not re4 ceive pay in excess of the annual rate of basic pay

5 payable for level IV of the Executive Schedule under

6 section 5315 of title 5, United States Code.

7 (3) LIMITATIONS.—Not more than one-third of

8 the personnel employed by or detailed to the Com9 mission shall be individuals employed by the Depart10 ment of Energy on the day before the date of the

11 enactment of this Act. No employee of an energy

12 laboratory, or of a contractor who operates an en13 ergy laboratory, may be detailed to the Commission.

14 (4) SUPPORT FROM OTHER AGENCIES.—Upon

15 request of the Director, the head of a Federal agen16 cy may detail any of the personnel of that agency to

17 the Commission to assist the Commission in carry18 ing out its duties under this chapter.

19 (5) SUPPORT FROM COMPTROLLER GENERAL.—

20 The Comptroller General of the United States shall

21 provide assistance, including the detailing of employ22 ees, to the Commission in accordance with an agree23 ment entered into with the Commission.

24 (j) OTHER AUTHORITY.—
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1 (1) TEMPORARY AND INTERMITTENT SERV2 ICES.—The Commission may procure by contract, to

3 the extent funds are available, the temporary or

4 intermittent services of experts or consultants pursu5 ant to section 3109 of title 5, United States Code.

6 (2) AUTHORITY TO LEASE SPACE AND ACQUIRE

7 CERTAIN PROPERTY.—The Commission may lease

8 space and acquire personal property to the extent

9 funds are available. To the extent practicable, the

10 Commission shall use suitable real property available

11 under the most recent inventory of real property as12 sets published by the Resolution Trust Corporation

13 under section 21A(b)(11)(F) of the Federal Home

14 Loan Bank Act (12 U.S.C. 1441a(b)(12)(F)).

15 (k) FUNDING.—There are authorized to be appro16 priated to the Commission such funds as are necessary

17 to carry out its duties under this chapter. Such funds shall

18 remain available until expended.

19 (l) TERMINATION.—The Commission shall terminate

20 not later than 30 days after the date on which it transmits

21 its final recommendations under section 4022(f)(4).

22 SEC. 4022. PROCEDURE FOR MAKING RECOMMENDATIONS

23 FOR LABORATORY FACILITIES.

24 (a) SELECTION CRITERIA.—In making recommenda25 tions for the reconfiguration, privatization, and closure of
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1 energy laboratories and termination of programs at such

2 laboratories under this section, the Secretary or the Ad3 ministrator, as appropriate, and the Commission shall—

4 (1) give strong consideration to the closure or

5 reconfiguration of energy laboratories;

6 (2) eliminate duplication of effort by energy

7 laboratories and reduce overhead costs as a propor8 tion of program benefits distributed through an en9 ergy laboratory;

10 (3) seek to achieve cost savings for the overall

11 budget for such laboratories;

12 (4) define appropriate missions for each energy

13 laboratory, and ensure that the activities of each

14 such laboratory are focused on its mission or mis15 sions;

16 (5) consider the program costs and program

17 distributions on a State and county basis, including

18 real and personal property costs associated with

19 each energy laboratory considered;

20 (6) consider the number of participants in pro21 grams conducted through an energy laboratory and

22 staff resources involved;

23 (7) estimate the cost savings and increases that

24 would accrue through the reconfiguration of energy

25 laboratories;
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1 (8) consider the potential of each energy labora2 tory to generate revenues or to offset costs;

3 (9) consider the transfer of energy laboratories

4 to other Federal agencies;

5 (10) consider the privatization of the energy

6 laboratories as an alternative to closure or reconfig7 uration; and

8 (11) be subject to the requirements of section

9 4061 of this subtitle.

10 (b) RECOMMENDATIONS.—

11 (1) PUBLICATION AND TRANSMITTAL.—Not

12 later than 3 months after the date of the enactment

13 of this Act, the Secretary or the Administrator, as

14 appropriate, shall publish in the Federal Register

15 and transmit to the congressional energy committees

16 and to the Commission a list of the energy labora17 tories that the Secretary or the Administrator, as

18 appropriate, recommends for reconfiguration, privat19 ization, and closure.

20 (2) SUMMARY OF SELECTION PROCESS.—The

21 Secretary or the Administrator, as appropriate, shall

22 include, with the list of recommendations published

23 and transmitted pursuant to paragraph (1), a sum24 mary of the selection process that resulted in the
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1 recommendation for each energy laboratory, includ2 ing a justification for each recommendation.

3 (c) EQUAL CONSIDERATION OF LABORATORIES.—In

4 considering energy laboratories for reconfiguration, privat5 ization, and closure, the Secretary or the Administrator,

6 as appropriate, shall consider all such laboratories equally

7 without regard to whether a laboratory has been pre8 viously considered or proposed for reconfiguration, privat9 ization, or closure by the Secretary of Energy.

10 (d) AVAILABILITY OF INFORMATION.—The Secretary

11 or the Administrator, as appropriate, shall make available

12 to the Commission and the Comptroller General of the

13 United States all information used by the Secretary or the

14 Administrator, as appropriate, in making recommenda15 tions under this section.

16 (e) INDEPENDENT AUDIT.—(1) Within 30 days after

17 the date of the enactment of this Act, the Director of the

18 Office of Management and Budget shall issue a request

19 for proposals for the performance of an audit under para20 graph (3).

21 (2) Within 60 days after the date of the enactment

22 of this Act, proposals shall be due in response to the re23 quest under paragraph (1).

24 (3) Within 90 days after the date of the enactment

25 of this Act, the Director of the Office of Management and
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1 budget shall enter into a contract with an independent fi2 nancial consulting firm for an audit of the energy labora3 tories and their programs, facilities, and assets. Such

4 audit shall assess the commercial potential of the energy

5 labs and their programs and make recommendations on

6 how the Government could best realize such potential. The

7 audit shall be completed and transmitted to the Commis8 sion, the Secretary or the Administrator, as appropriate,,

9 and the congressional energy committees within 6 months

10 after the contract is entered into under this subsection.

11 (f) REVIEW AND RECOMMENDATIONS BY THE COM12 MISSION.—

13 (1) PUBLIC HEARINGS.—After receiving the

14 recommendations from the Secretary or the Admin15 istrator, as appropriate, pursuant to subsection (b),

16 the Commission shall provide an opportunity for

17 public comment on the recommendations for a 30-

18 day period.

19 (2) INITIAL REPORT.—Not later than 1 year

20 after the date of the enactment of this Act, the

21 Commission shall publish in the Federal Register an

22 initial report containing the Commission’s findings

23 and conclusions based on a review and analysis of

24 the recommendations made by the Secretary or the

25 Administrator, as appropriate, and the audit con-
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1 ducted pursuant to subsection (e), together with the

2 Commission’s recommendations for reconfiguration,

3 privatization, and closure of energy laboratories. In

4 conducting such review and analysis, the Commis5 sion shall consider all energy laboratories.

6 (3) DEVIATION FROM RECOMMENDATIONS.—In

7 making its recommendations, the Commission may

8 make changes in any of the recommendations made

9 by the Secretary or the Administrator, as appro10 priate, if the Commission determines that the Sec11 retary or the Administrator, as appropriate, deviated

12 substantially from the criteria described in sub13 section (a) in making recommendations. The Com14 mission shall explain and justify in the report any

15 recommendation made by the Commission that is

16 different from the recommendations made by the

17 Secretary or the Administrator, as appropriate.

18 (4) FINAL REPORT.—After providing a 30-day

19 period for public comment following publication of

20 the initial report under paragraph (2), and after full

21 consideration of such public comments, the Commis22 sion shall, within 15 months after the date of the

23 enactment of this Act, transmit to the Secretary or

24 the Administrator, as appropriate, and the congres-
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1 sional energy committees a final report containing

2 the recommendations of the Commission.

3 (5) PROVISION OF CERTAIN INFORMATION.—

4 After transmitting the final report under paragraph

5 (4), the Commission shall promptly provide, upon re6 quest, to any Member of Congress information used

7 by the Commission in making its recommendations.

8 (g) ASSISTANCE FROM COMPTROLLER GENERAL.—

9 The Comptroller General of the United States shall—

10 (1) assist the Commission, to the extent re11 quested, in the Commission’s review and analysis of

12 the recommendations made by the Secretary or the

13 Administrator, as appropriate, pursuant to sub14 section (b); and

15 (2) not later than 6 months after the date of

16 the enactment of this Act, transmit to the congres17 sional energy committees and to the Commission a

18 report containing a detailed analysis of the rec19 ommendations of the Secretary or the Adminis20 trator, as appropriate, and the selection process.

21 SEC. 4023. RECONFIGURATION, PRIVATIZATION, AND CLO22 SURE OF ENERGY LABORATORIES.

23 (a) IN GENERAL.—Subject to subsection (b), the

24 Secretary or the Administrator, as appropriate, shall—
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1 (1) reconfigure, within 1 year after the date of

2 the transmittal of the final report under section

3 4022(f)(4), all energy laboratories recommended for

4 reconfiguration by the Commission in such report;

5 (2) provide for and complete the privatization,

6 within 18 months after the date of the transmittal

7 of the final report under section 4022(f)(4), of all

8 energy laboratories recommended for privatization

9 by the Commission in such report; and

10 (3) except as necessary to achieve the privatiza11 tion of an energy laboratory under paragraph (2),

12 close, within 1 year after the date of the transmittal

13 of the final report under section 4022(f)(4), all en14 ergy laboratories recommended for closure by the

15 Commission in such report.

16 (b) CONGRESSIONAL DISAPPROVAL.—

17 (1) IN GENERAL.—The Secretary or the Admin18 istrator, as appropriate, may not carry out any re19 configuration, privatization, or closure of an energy

20 laboratory recommended by the Commission in the

21 report transmitted pursuant to section 4022(f)(4) if

22 a joint resolution is enacted, in accordance with the

23 provisions of section 4027, disapproving the rec24 ommendations of the Commission before the earlier

25 of—
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1 (A) the end of the 45-day period beginning

2 on the date on which the Commission transmits

3 the report; or

4 (B) the adjournment of Congress sine die

5 for the session during which the report is trans6 mitted.

7 (2) For purposes of paragraph (1) of this sub8 section and subsections (a) and (c) of section 4027,

9 the days on which either House of Congress is not

10 in session because of an adjournment of more than

11 three days to a day certain shall be excluded in the

12 computation of a period.

13 SEC. 4024. IMPLEMENTATION OF RECONFIGURATION, PRI14 VATIZATION, AND CLOSURE ACTIONS.

15 (a) IMPLEMENTATION.—In reconfiguring, priva16 tizing, or closing an energy laboratory under this chapter,

17 the Secretary or the Administrator, as appropriate,

18 shall—

19 (1) take such actions as may be necessary to

20 reconfigure, privatize, or close the energy laboratory;

21 (2) take such steps as may be necessary to en22 sure the safe keeping of all records stored at the en23 ergy laboratory; and

24 (3) reimburse other Federal agencies for ac25 tions performed at the request of the Secretary or
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1 the Administrator, as appropriate, with respect to

2 any such reconfiguration, privatization, or closure,

3 and may use for such purpose funds in the Account

4 or funds appropriated to the Department of Energy

5 and available for such purpose.

6 (b) MANAGEMENT AND DISPOSAL OF PROPERTY.—

7 (1) IN GENERAL.—The Administrator of Gen8 eral Services shall delegate to the Secretary or the

9 Administrator, as appropriate, with respect to excess

10 and surplus real property and facilities located at an

11 energy laboratory reconfigured, privatized, or closed

12 under this chapter—

13 (A) the authority of the Secretary or the

14 Administrator, as appropriate, to utilize excess

15 property under section 202 of the Federal

16 Property and Administrative Services Act of

17 1949 (40 U.S.C. 483);

18 (B) the authority of the Secretary or the

19 Administrator, as appropriate, to dispose of

20 surplus property under section 203 of that Act

21 (40 U.S.C. 484);

22 (C) the authority of the Secretary or the

23 Administrator, as appropriate, to grant approv24 als and make determinations under section
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1 13(g) of the Surplus Property Act of 1944 (50

2 U.S.C. App. 1622(g)); and

3 (D) the authority of the Secretary or the

4 Administrator, as appropriate, to determine the

5 availability of excess or surplus real property

6 for wildlife conservation purposes in accordance

7 with the Act of May 19, 1948 (16 U.S.C.

8 667b).

9 (2) EXERCISE OF AUTHORITY.—

10 (A) IN GENERAL.—Subject to subpara11 graph (C), the Secretary or the Administrator,

12 as appropriate, shall exercise the authority dele13 gated to the Secretary or the Administrator, as

14 appropriate, pursuant to paragraph (1) in ac15 cordance with—

16 (i) all regulations in effect on the date

17 of the enactment of this Act governing the

18 utilization of excess property and the dis19 posal of surplus property under the Fed20 eral Property and Administrative Services

21 Act of 1949; and

22 (ii) all regulations in effect on the

23 date of the enactment of this Act govern24 ing the conveyance and disposal of prop25 erty under section 13(g) of the Surplus
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1 Property Act of 1944 (50 U.S.C. App.

2 1622(g)).

3 (B) REGULATIONS.—The Secretary or the

4 Administrator, as appropriate, after consulting

5 with the Administrator of General Services,

6 may issue regulations that are necessary to

7 carry out the delegation of authority required

8 by paragraph (1).

9 (C) LIMITATION.—The authority required

10 to be delegated by paragraph (1) to the Sec11 retary or the Administrator, as appropriate, by

12 the Administrator of General Services shall not

13 include the authority to prescribe general poli14 cies and methods for utilizing excess property

15 and disposing of surplus property.

16 (c) WAIVER.—The Secretary or the Administrator, as

17 appropriate, may reconfigure, privatize, or close energy

18 laboratories under this chapter without regard to any pro19 vision of law restricting the use of funds for reconfiguring,

20 privatizing, or closing such energy laboratories included

21 in any appropriations or authorization Act.

22 SEC. 4025. ACCOUNT.

23 (a) ESTABLISHMENT.—There is hereby established

24 on the books of the Treasury an account to be known as

25 the ‘‘Energy Laboratory Facility Closure Account’’ which
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1 shall be administered by the Secretary or the Adminis2 trator, as appropriate, as a single account.

3 (b) CONTENT OF ACCOUNT.—There shall be depos4 ited into the Account—

5 (1) funds authorized for and appropriated to

6 the Account;

7 (2) any funds that the Secretary or the Admin8 istrator, as appropriate, may, subject to approval in

9 an appropriation Act, transfer to the Account from

10 funds appropriated to the Department of Energy for

11 any purpose, except that such funds may be trans12 ferred only after the date on which the Secretary or

13 the Administrator, as appropriate, transmits written

14 notice of, and justification for, such transfer to the

15 congressional energy committees; and

16 (3) proceeds received from the transfer or dis17 posal of any property at an office reconfigured,

18 privatized, or closed under this section.

19 (c) USE OF FUNDS.—The Secretary or the Adminis20 trator, as appropriate, may use the funds in the Account

21 only for the purposes described in section 4024(a).

22 (d) REPORTS.—

23 (1) IN GENERAL.—Not later than 60 days after

24 the end of each fiscal year in which the Secretary or

25 the Administrator, as appropriate, carries out activi-
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1 ties under this chapter, the Secretary or the Admin2 istrator, as appropriate, shall transmit a report to

3 the congressional energy committees of the amount

4 and nature of the deposits into, and the expendi5 tures from, the Account during such fiscal year and

6 of the amount and nature of other expenditures

7 made pursuant to section 4024(a) during such fiscal

8 year.

9 (2) UNOBLIGATED FUNDS.—Unobligated funds

10 shall be held in the Account until transferred by law.

11 SEC. 4026. REPORTS ON IMPLEMENTATION.

12 As part of the budget request for each fiscal year in

13 which the Secretary or the Administrator, as appropriate,

14 is authorized to carry out activities under this chapter,

15 the Secretary or the Administrator, as appropriate, shall

16 transmit to the congressional energy committees—

17 (1) a schedule of the reconfiguration, privatiza18 tion, and closure actions to be carried out under this

19 chapter in the fiscal year for which the request is

20 made and an estimate of the total expenditures re21 quired and cost savings to be achieved by each such

22 reconfiguration, privatization, or closure and of the

23 time period in which these savings are to be achieved

24 in each case; and
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1 (2) a description of the energy laboratories to

2 which functions are to be transferred as a result of

3 such reconfigurations, privatizations, and closures.

4 SEC. 4027. CONGRESSIONAL CONSIDERATION OF COMMIS5 SION REPORT.

6 (a) TERMS OF THE RESOLUTION.—For purposes of

7 section 4023(b), the term ‘‘joint resolution’’ means only

8 a joint resolution which is introduced within the 10-day

9 period beginning on the date on which the Commission

10 transmits the report to the Congress under section

11 4022(f)(4), and—

12 (1) which does not have a preamble;

13 (2) the matter after the resolving clause of

14 which is as follows: ‘‘That Congress disapproves the

15 recommendations of the Energy Laboratory Facili16 ties Commission as submitted on lll’’, the blank

17 space being filled in with the appropriate date; and

18 (3) the title of which is as follows: ‘‘Joint reso19 lution disapproving the recommendations of the En20 ergy Laboratory Facilities Commission.’’.

21 (b) REFERRAL.—A resolution described in subsection

22 (a) that is introduced in the House of Representatives

23 shall be referred to the Committee on National Security

24 and the Committee on Science of the House of Represent25 atives. A resolution described in subsection (a) introduced
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1 in the Senate shall be referred to the Committee on Armed

2 Services and the Committee on Energy and Natural Re3 sources of the Senate.

4 (c) DISCHARGE.—If the committee to which a resolu5 tion described in subsection (a) is referred has not re6 ported such resolution (or an identical resolution) by the

7 end of the 20-day period beginning on the date on which

8 the Commission transmits the report to the Congress

9 under section 4022(f)(4), such committee shall be, at the

10 end of such period, discharged from further consideration

11 of such resolution, and such resolution shall be placed on

12 the appropriate calendar of the House involved.

13 (d) CONSIDERATION.—

14 (1) IN GENERAL.—On or after the third day

15 after the date on which the committee to which such

16 a resolution is referred has reported, or has been

17 discharged (under subsection (c)) from further con18 sideration of, such a resolution, it is in order (even

19 though a previous motion to the same effect has

20 been disagreed to) for any Member of the respective

21 House to move to proceed to the consideration of the

22 resolution (but only on the day after the calendar

23 day on which such Member announces to the House

24 concerned the Member’s intention to do so). All

25 points of order against the resolution (and against
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1 consideration of the resolution) are waived. The mo2 tion is highly privileged in the House of Representa3 tives and is privileged in the Senate and is not de4 batable. The motion is not subject to amendment, or

5 to a motion to postpone, or to a motion to proceed

6 to the consideration of other business. A motion to

7 reconsider the vote by which the motion is agreed to

8 or disagreed to shall not be in order. If a motion to

9 proceed to the consideration of the resolution is

10 agreed to, the respective House shall immediately

11 proceed to consideration of the joint resolution with12 out intervening motion, order, or other business, and

13 the resolution shall remain the unfinished business

14 of the respective House until disposed of.

15 (2) DEBATE.—Debate on the resolution, and on

16 all debatable motions and appeals in connection

17 therewith, shall be limited to not more than 2 hours,

18 which shall be divided equally between those favoring

19 and those opposing the resolution. An amendment to

20 the resolution is not in order. A motion further to

21 limit debate is in order and not debatable. A motion

22 to postpone, or a motion to proceed to the consider23 ation of other business, or a motion to recommit the

24 resolution is not in order. A motion to reconsider the
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1 vote by which the resolution is agreed to or dis2 agreed to is not in order.

3 (3) QUORUM CALL.—Immediately following the

4 conclusion of the debate on a resolution described in

5 subsection (a) and a single quorum call at the con6 clusion of the debate if requested in accordance with

7 the rules of the appropriate House, the vote on final

8 passage of the resolution shall occur.

9 (4) APPEALS FROM DECISION OF CHAIR.—Ap10 peals from the decisions of the Chair relating to the

11 application of the rules of the Senate or the House

12 of Representatives, as the case may be, to the proce13 dure relating to a resolution described in subsection

14 (a) shall be decided without debate.

15 (e) CONSIDERATION BY OTHER HOUSE.—

16 (1) IN GENERAL.—If, before the passage by one

17 House of a resolution of that House described in

18 subsection (a), that House receives from the other

19 House a resolution described in subsection (a), then

20 the following procedures shall apply:

21 (A) The resolution of the other House shall

22 not be referred to a committee and may not be

23 considered in the House receiving it except in

24 the case of final passage as provided in sub25 paragraph (B)(ii).
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1 (B) With respect to a resolution described

2 in paragraph (1) of the House receiving the res3 olution—

4 (i) the procedure in that House shall

5 be the same as if no resolution had been

6 received from the other House; but

7 (ii) the vote on final passage shall be

8 on the resolution of the other House.

9 (2) CONSIDERATION AFTER DISPOSITION BY

10 OTHER HOUSE.—Upon disposition of the resolution

11 received from the other House, it shall no longer be

12 in order to consider the resolution that originated in

13 the receiving House.

14 (f) RULES OF THE SENATE AND HOUSE.—This sec15 tion is enacted by Congress—

16 (1) as an exercise of the rulemaking power of

17 the Senate and House of Representatives, respec18 tively, and as such it is deemed a part of the rules

19 of each House, respectively, but applicable only with

20 respect to the procedure to be followed in that

21 House in the case of a resolution described in sub22 section (a), and it supersedes other rules only to the

23 extent that it is inconsistent with such rules; and

24 (2) with full recognition of the constitutional

25 right of either House to change the rules (so far as
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1 relating to the procedure of that House) at any time,

2 in the same manner, and to the same extent as in

3 the case of any other rule of that House.

4 SEC. 4028. DEFINITIONS.

5 For purposes of this chapter:

6 (1) The term ‘‘Account’’ means the Energy

7 Laboratory Facility Closure Account established in

8 section 4025(a).

9 (2) The term ‘‘Administrator’’ has the meaning

10 given such term in section 4089(1) of this subtitle.

11 (3) The term ‘‘Commission’’ means the Energy

12 Laboratory Facilities Commission.

13 (4) The term ‘‘congressional energy commit14 tees’’ means the Committee on Armed Services of

15 the Senate, the Committee on National Security of

16 the House of Representatives, the Committee on

17 Science of the House of Representatives, and the

18 Committee on Energy and Natural Resources of the

19 Senate.

20 (5) The term ‘‘energy laboratory’’ means the

21 Lawrence Livermore National Laboratory, the Los

22 Alamos National Laboratory, the Sandia National

23 Laboratories, the Argonne National Laboratory, the

24 Brookhaven National Laboratory, the Idaho Na25 tional Engineering Laboratory, the Lawrence Berke-
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1 ley Laboratory, the Oak Ridge National Laboratory,

2 the Pacific Northwest Laboratory, the National Re3 newable Energy Laboratory, the Ames Laboratory,

4 the Bates Linear Accelerator Laboratory, the Bettis

5 Atomic Power Laboratory, the Continuous Electron

6 Beam Accelerator Facility, the Energy Technology

7 Engineering Center, the Environmental Measure8 ments Laboratory, the Fermi National Accelerator

9 Laboratory, the Inhalation Toxicology Research In10 stitute, the Knolls Atomic Power Laboratory, the

11 Laboratory of Radiobiology and Environmental

12 Health, the Morgantown Energy Technology Center,

13 the National Renewable Energy Laboratory, the

14 New Brunswick Laboratory, the Oak Ridge Institute

15 for Science and Education, the Pittsburgh Energy

16 Technology Center, the Princeton Plasma Physics

17 Laboratory, the Savannah River Ecology Labora18 tory, the Savannah River Technology Center, the

19 Specific Manufacturing Capability Facility, or the

20 Stanford Linear Accelerator Facility.

21 (6) The term ‘‘the Secretary or the Adminis22 trator, as appropriate’’ means the Secretary of En23 ergy, or, after the effective date stated in section

24 4019(a), the Administrator.
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1 CHAPTER 3—PRIVATIZATION OF FEDERAL

2 POWER MARKETING ADMINISTRTIONS

3 SEC. 4031. SHORT TITLE.

4 This chapter may be cited as the ‘‘Federal Power

5 Asset Privatization Act of 1995’’.

6 SEC. 4032. FINDINGS.

7 The Congress finds that:

8 (1) the Federal Power Marketing Administra9 tions, over the years, have served to help bring elec10 tricity to many areas in the Nation;

11 (2) they have done so with the investment of

12 the American taxpayer;

13 (3) the necessity of federally owned power gen14 eration and transmission facilities has passed and

15 halting this practice is in the best national interest

16 of the United States;

17 (4) in fairness to the longtime consumers of

18 Federal Power Marketing Administrations, any proc19 ess of sale should be open to them;

20 (5) the taxpayers, through investing in the con21 struction and operation, have established equity in

22 the facilities; and

23 (6) this equity entitles the American taxpayer

24 to expect the highest possible return in the sale

25 process.
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1 SEC. 4033. SALE OF ASSETS.

2 (a) SALE OF ASSETS.—The Secretary is authorized

3 and directed to take such steps as necessary to sell all

4 electric power generation facilities and transmission facili5 ties, that are currently owned and operated by Federal

6 departments and agencies under the supervision of, or co7 ordination with, the Federal Power Marketing Administra8 tions. No foreign person or corporation may purchase any

9 such facilities; such facilities may be sold only to a United

10 States citizen or to a corporation or partnership organized

11 under the laws of a State. After such sales are completed

12 the Secretary shall terminate the operations of the Federal

13 Power Marketing Administrations. The heads of other af14 fected Federal departments and agencies shall assist the

15 Secretary of Energy in implementing the sales authorized

16 by this section.

17 (b) PRICE; STRUCTURE OF SALE.—

18 (1) PRICE.—The Secretary shall obtain the

19 highest possible price for such facilities. In determin20 ing the highest possible price, the value of future tax

21 revenues shall be included.

22 (2) RETENTION OF FINANCIAL ADVISOR.—In

23 order to conduct the sales authorized by this section

24 in such manner as will produce the highest possible

25 price for the facilities to be sold consistent with this

26 chapter, within 30 days of enactment of this section,
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1 the Secretary shall, through a competitive bidding

2 process, retain an experienced private sector firm to

3 serve as financial advisor to the Secretary with re4 spect to such sales.

5 (3) FINANCIAL ADVISOR’S REPORT.—Within 90

6 days of being retained by the Secretary, the financial

7 advisor shall provide to the Secretary a report con8 taining—

9 (A) a description of those assets described

10 in subsection (a) which, in the opinion of the fi11 nancial advisor, can be successfully transferred

12 to private sector ownership or operation;

13 (B) the value of each such asset, calculated

14 on the basis of the valuation method or meth15 ods which the financial advisor deems most ap16 propriate to a particular asset;

17 (C) the appropriate alternative trans18 actional methods for transferring each such

19 asset to private sector ownership or operation;

20 (D) the amount of proceeds which the fi21 nancial advisor estimates would be paid to the

22 United States Government as a result of such

23 transaction, including the present value of fu24 ture revenue from taxes and any other future
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1 payments to be made to the United States Gov2 ernment; and

3 (E) an estimate of the average market rate

4 for wholesale electric power sales within each

5 region served by a Federal Power Marketing

6 Administration.

7 (c) TIME OF SALE.—Sales of facilities under this sec8 tion shall be conducted in accordance with the time of sale

9 schedule set forth in section 4034. At least one year before

10 the date of any sale specified in such schedule, the Sec11 retary, in consultation with the Secretary of the Army and

12 the Secretary of the Interior, and based on the rec13 ommendations of the financial advisor, shall select the fa14 cilities or groups of facilities to be sold and establish the

15 terms and conditions of the sale.

16 (d) FORMER EMPLOYEES OF PMAS.—It is the sense

17 of the Congress that the purchaser of any such facilities

18 should offer to employ, where possible, former employees

19 of the Federal Power Marketing Administrations in con20 nection with the operation of the facilities following their

21 purchase.

22 (e) PROCEEDS.—The Secretary of Energy shall de23 posit sale proceeds in the Treasury of the United States

24 to the credit of miscellaneous receipts.
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1 (f) PREPARATION.—The Secretary of Energy is au2 thorized to use funds appropriated to the Department of

3 Energy for the Federal Power Marketing Administrations

4 and funds otherwise appropriated to other Federal agen5 cies for power generation and related activities in order

6 to prepare these assets for sale and conveyance. Such

7 preparation shall provide sufficient title to ensure the ben8 eficial use, enjoyment, and occupancy to the purchasers

9 of the assets to be sold and shall include identification of

10 all associated laws and regulations to be amended for the

11 purpose of these sales. The Secretary of Energy shall un12 dertake a study of the effect of sales of facilities under

13 this chapter on existing contracts for the sale of electric

14 power generated at such facilities.

15 (g) REPORTING OF SALES.—Not later than one year

16 after the sale of the assets of each Federal Power Market17 ing Administration in accordance with this chapter, the

18 Secretary of Energy shall—

19 (1) complete the business of, and close out,

20 such administration; and

21 (2) prepare and submit to Congress a report

22 documenting the sales.

23 (h) TREATMENT OF SALES FOR PURPOSES OF CER24 TAIN LAWS.—The sales of assets under this chapter shall
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1 not be considered a disposal of Federal surplus property

2 under the following provisions of law:

3 (1) Section 203 of the Federal Property and

4 Administrative Services Act of 1949 (40 U.S.C.

5 484).

6 (2) Section 13 of the Surplus Property Act of

7 1944 (50 U.S.C. App. 1622).

8 SEC. 4034. TIME OF SALES.

9 (a) SCHEDULE.—During the next 5 years, the Sec10 retary of Energy shall complete the sale of the electric

11 power generation and transmission assets referred to in

12 section 4033 in accordance with the following schedule:

Power Administration Sale Completion Date

Alaska Before September 30, 1996

Southeastern Before September 30, 1997

Southwestern Before September 30, 1998

Western Area Before September 30, 1999

Bonneville Before September 30, 2000

13 (b) UNEXPENDED BALANCES.—Following the sale of

14 the assets of each of the Federal Power Marketing Admin15 istrations and their associated power generation facilities,

16 the Secretary of Energy shall return the unexpended bal17 ances of funds appropriated for that administration to the

18 Treasury of the United States.
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1 SEC. 4035. RATE STABILIZATION FOR AFFECTED CONSUM2 ERS.

3 So that the affected consumers of each Federal

4 Power Marketing Administration are not impacted by se5 vere rate increases, each purchaser of electric power gen6 eration facilities providing electric power to customers

7 within any region shall be required, as part of the agree8 ment to purchase such facilities, to insure that the price

9 at which electric power is sold to such consumers does not

10 increase above the baseline price at a rate greater than

11 10 percent annually. For purposes of this section, the term

12 ‘‘baseline price’’ means the price for the sale of electric

13 power to a consumer that is in effect on the date of the

14 sale of the facility. The preceding sentence shall cease to

15 apply when the price at which electric power is sold to

16 a consumer is at least equal to the average market rate

17 for wholesale electric power sales within the region con18 cerned, as determined by the Financial Advisor.

19 SEC. 4036. LICENSING OF PROJECTS TO PRESERVE CUR20 RENT OPERATING CONDITIONS.

21 (a) ORIGINAL LICENSE.—Simultaneously with the

22 sale of hydroelectric generation facility under this chapter,

23 the Federal Energy Regulatory Commission shall issue an

24 original license under part 1 of the Federal Power Act

25 (16 U.S.C. 791a–823b) to the purchaser for the construc26 tion, operation, and maintenance of such facility. Such li-
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1 cense shall expire on the date 10 years after the date of

2 the sale facility and shall contain standard terms and con3 ditions for hydroelectric power licenses issued under part

4 1 of such Act for facilities installed at Federal water

5 projects, together with such additional terms and condi6 tions as the Commission deems necessary, in consultation

7 with the department or agency which operates such water

8 project, to further the project purposes and insure that

9 the project will continue operations in the same manner

10 and subject to the same procedures, contracts, and other

11 requirements as were applicable prior to the sale. The

12 Commission shall publish such license terms and condi13 tions for each facility to be sold under this chapter as

14 promptly as practicable after the date of the enactment

15 of this Act but not later than one year prior to the date

16 established for the sale of the facility.

17 (b) LICENSE REQUIRED.—Notwithstanding any

18 other provision of law, the Federal Energy Regulatory

19 Commission shall have jursidiction under part 1 of the

20 Federal Power Act over any hydroelectric generation facil21 ity sold under this chapter.

22 SEC. 4037. ENABLING FEDERAL STUDIES.

23 Section 505 of the Energy and Water Development

24 Appropriations Act of 1993 (Public Law 102–377) is

25 hereby repealed.
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1 SEC. 4038. DEFINITIONS.

2 For purposes of this chapter:

3 (1) The term ‘‘power generation facility’’ means

4 a facility used for the generation of electric energy.

5 If any portion of a structure or other facility is used

6 for flood control, water supply, or other purposes in

7 addition to the generation of electric energy, such

8 term refers only to that portion of the structure or

9 facility used exclusively for the generation of electric

10 energy, including turbines, generators, controls, sub11 stations, and primary lines used for transmitting

12 electric energy therefrom to the point of juncture

13 with the interconnected primary transmission sys14 tem. Such term shall not include any portion of a fa15 cility used for navigation, flood control, irrigation,

16 water supply, or recreation.

17 (2) The term ‘‘Secretary’’ means the Secretary

18 of Energy or any successor agency. If any such

19 agency terminates prior to the complete execution of

20 all duties vested in the Secretary of Energy under

21 this chapter, such duties shall be vested in the Sec22 retary of the Interior.
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1 CHAPTER 4—TRANSFER AND DISPOSAL

2 OF RESERVES

3 SEC. 4041. STRATEGIC PETROLEUM RESERVE.

4 (a) TRANSFER OF FUNCTIONS.—There are hereby

5 transferred to the Secretary of the Interior all functions

6 performed by the Department of Energy with respect to

7 the Strategic Petroleum Reserve on the day before the ef8 fective date of this section.

9 (b) DISPOSAL OF CERTAIN RESERVES.—The Sec10 retary of the Interior shall dispose of the reserves held

11 at Weeks Island, Louisiana, in a manner that provides for

12 minimal disruption of petroleum markets.

13 (c) ADVISORY BOARD.—(1) The Secretary of the In14 terior shall appoint an advisory board, consisting of 3 indi15 viduals with experience in oil markets and production and

16 international relations, which shall—

17 (A) monitor the disposal of reserves under sub18 section (b) and its effects on petroleum markets; and

19 (B) within 60 days after the completion of such

20 disposal, submit to the Congress a report containing

21 recommendations as described in paragraph (2).

22 (2) The advisory board shall make recommendations

23 on whether the United States should maintain or dispose

24 of the Strategic Petroleum Reserve, based on information

25 obtained pursuant to paragraph (1)(A) and any other rel-
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1 evant information the advisory board obtains. If the advi2 sory board recommends maintaining the Strategic Petro3 leum Reserve, it shall include recommendations for admin4 istering the Reserve, and if it recommends disposing of

5 the Reserve, it shall include recommendations for proce6 dures for carrying out such disposal.

7 (3) Notwithstanding section 14 of the Federal Advi8 sory Committee Act, the advisory board established under

9 this subsection shall terminate within 30 days after it sub10 mits a report under paragraph (1)(B).

11 (d) EFFECTIVE DATE.—This section shall take effect

12 on the effective date stated in section 4019(a).

13 SEC. 4042. TRANSFER OF NAVAL PETROLEUM RESERVES TO

14 DEPARTMENT OF THE INTERIOR WITH IN15 STRUCTIONS TO SELL THE RESERVES.

16 (a) TRANSFER OF JURISDICTION.—The Secretary of

17 Energy shall transfer the naval petroleum reserves (as de18 fined in section 7420(2) of title 10, United States Code)

19 from the jurisdiction and control of the Department of En20 ergy to the jurisdiction and control of the Department of

21 the Interior. The transfer required by this subsection shall

22 be made without compensation or reimbursement.

23 (b) TIME FOR TRANSFER.—The transfer required by

24 subsection (a) shall be made as soon as possible after the
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1 date of the enactment of this Act, but in no case later

2 than one year after that date.

3 (c) SALE OF RESERVES REQUIRED.—Chapter 641 of

4 title 10, United States Code, is amended by inserting after

5 section 7421 the following new section:

6 ‘‘§ 7421a. Sale of naval petroleum reserves

7 ‘‘(a) SALE REQUIRED.—Notwithstanding any other

8 provision of this chapter, the Secretary of the Interior

9 shall sell all right, title, and interest of the United States

10 in and to the naval petroleum reserves beginning on the

11 date of the enactment of this section.

12 ‘‘(b) TIME FOR SALES.—The Secretary shall com13 plete the sale of the naval petroleum reserves not later

14 than one year after the date of the enactment of this sec15 tion unless, as a result of the conditions specified in sub16 section (c), the Secretary determines a longer sale period

17 is necessary. The Secretary shall notify Congress of any

18 extension of the sale period.

19 ‘‘(c) CONDITIONS ON SALE.—Sales of the naval pe20 troleum reserves under subsection (a) may not be for less

21 than fair market value, as determined by the Secretary

22 on the basis of appraisals performed by recognized experts

23 in the field. The Secretary shall conduct sales using com24 petitive procedures. The Secretary may establish such bid25 ding terms and conditions as the Secretary considers to
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1 be necessary and appropriate, including the establishment

2 of sale units and minimum bids. The Secretary shall struc3 ture sale units and times so as to prevent disruption of

4 world petroleum markets.

5 ‘‘(d) EFFECT ON EXISTING CONTRACTS AND

6 LEASES.—Sales of the naval petroleum reserves under

7 subsection (a) shall be subject to leases of any part of the

8 naval petroleum reserves, permits, licenses, easements,

9 grazing and agricultural leases, rights-of-way, and similar

10 contracts pertaining to use of the surface area of the naval

11 petroleum reserves and in effect on the date of the enact12 ment of this section. Such sales shall also be subject to

13 contracts, in effect on the date of the enactment of this

14 section, to sell the petroleum produced from any part of

15 the naval petroleum reserves.

16 ‘‘(e) PURCHASER TO BE HELD HARMLESS.—A pur17 chaser of any right, title, or interest of the United States

18 in the naval petroleum reserves shall be held harmless for

19 any claim of liability arising exclusively from or during

20 the ownership of the interest by the United States. Such

21 a claim of liability may be asserted against the United

22 States only to the extent and in the manner provided by

23 law.

24 ‘‘(f) REQUIREMENTS REGARDING CONSULTATION

25 AND APPROVAL.—The congressional consultation and
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1 Presidential approval requirements of section 7431(a) of

2 this title regarding each individual sale of a portion of the

3 naval petroleum reserves shall not apply to sales under

4 this section.’’.

5 (d) CLERICAL AMENDMENT.—The table of sections

6 at the beginning of such chapter is amended by inserting

7 after the item relating to section 7421 the following new

8 item:

‘‘7421a. Sale of naval petroleum reserves.’’.

9 (e) CONFORMING AMENDMENTS TO TITLE 10,

10 UNITED STATES CODE.—Chapter 641 of title 10, United

11 States Code, is amended—

12 (1) in section 7420(4), by striking ‘‘Secretary

13 of Energy’’ and inserting ‘‘Secretary of the Inte14 rior’’;

15 (2) in section 7427, by striking ‘‘of the Inte16 rior’’;

17 (3) in section 7430(d), by striking ‘‘, in con18 sultation with the Secretary of the Interior,’’; and

19 (4) in section 7430(j), by striking ‘‘he, or the

20 Secretary of the Interior where the authority extends

21 to him,’’.
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1 CHAPTER 5—NATIONAL SECURITY AND

2 ENVIRONMENTAL MANAGEMENT PRO3 GRAMS

4 SEC. 4051. DEFINITIONS.

5 In this chapter:

6 (1) The term ‘‘defense nuclear programs mat7 ters’’ means matters related to the military use of

8 nuclear energy and nuclear weapons, including all

9 such matters that were under the jurisdiction of the

10 following entities on the day before the date of the

11 enactment of this subtitle:

12 (A) The Department of Energy.

13 (B) The Defense Nuclear Agency of the

14 Department of Defense.

15 (C) The Defense Nuclear Facilities Safety

16 Board.

17 (2) The term ‘‘Under Secretary’’ means the

18 Under Secretary of Defense for Defense Nuclear

19 Programs.

20 (3) The term ‘‘Agency’’ means the Defense Nu21 clear Programs Agency.

22 SEC. 4052. ESTABLISHMENT AND ORGANIZATION OF DE23 FENSE NUCLEAR PROGRAMS AGENCY.

24 (a) ESTABLISHMENT OF DEFENSE NUCLEAR PRO25 GRAMS AGENCY.—There is established an agency in the
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1 Department of Defense to be known as the Defense Nu2 clear Programs Agency.

3 (b) UNDER SECRETARY.—The Agency shall be head4 ed by an Under Secretary for Defense Nuclear Programs,

5 who shall serve as the principal adviser to the Secretary

6 of Defense on defense nuclear programs matters. In carry7 ing out his duties under this chapter, the Under Secretary

8 for Defense Nuclear Programs shall, subject to the au9 thority, direction, and control of of the Secretary of De10 fense, have primary responsibility within the Government

11 for defense nuclear programs matters. The Under Sec12 retary shall be appointed by the President, by and with

13 the advice and consent of the Senate. A commissioned offi14 cer of the Armed Forces serving on active duty may not

15 be appointed Under Secretary. The Under Secretary shall

16 be compensated at the rate provided for level II of the

17 Executive Schedule under section 5313 of title 5, United

18 States Code.

19 (c) DEPUTY UNDER SECRETARY.—A Deputy Under

20 Secretary for Defense Nuclear Programs shall be ap21 pointed by the President, by and with the advice and con22 sent of the Senate. The Deputy Under Secretary shall per23 form such duties and exercise such powers as the Under

24 Secretary for Defense Nuclear Programs may prescribe.

25 The Deputy Under Secretary shall act for, and exercise
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1 the powers of, the Under Secretary during the Under Sec2 retary’s absence or disability or during a vacancy in such

3 office. A commissioned officer of the Armed Forces serv4 ing on active duty may not be appointed Deputy Under

5 Secretary. The Deputy Under Secretary shall be com6 pensated at the rate provided for level III of the Executive

7 Schedule under section 5314 of title 5, United States

8 Code.

9 (d) ASSISTANT SECRETARIES.—(1) Four Assistant

10 Secretaries of the Agency shall be appointed by the Presi11 dent, by and with the advice and consent of the Senate.

12 They shall perform such duties and exercise such powers

13 as the Under Secretary may prescribe.

14 (2) One of the Assistant Secretaries shall have as his

15 principal duty the overall supervision of environmental res16 toration of defense nuclear weapons facilities.

17 (3) One of the Assistant Secretaries shall have as his

18 principal duty the overall supervision of the oversight of

19 the defense and nondefense functions and budgets of the

20 Sandia National Laboratories, the Los Alamos National

21 Laboratory, and the Lawrence Livermore National Lab22 oratory (or whatever laboratories (or portions of labora23 tories) carrying out the functions of such laboratories re24 main after reconfiguration, privatization, or closure (if

25 any) pursuant to chapter 2).
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1 (4) Each Assistant Secretary shall be compensated

2 at the rate provided for level IV of the Executive Schedule

3 under section 5315 of title 5, United States Code.

4 (e) INSPECTOR GENERAL.—There shall be an Inspec5 tor General of the Agency, who shall be appointed as pro6 vided in section 3 of the Inspector General Act of 1978

7 (5 U.S.C. App. 3). The Inspector General shall perform

8 the duties, have the responsibilities, and exercise the pow9 ers specified in the Inspector General Act of 1978 (5

10 U.S.C. App. 3).

11 (f) GENERAL COUNSEL.—There shall be a General

12 Counsel of the Agency, who shall be appointed by the

13 Under Secretary. The General Counsel shall be the chief

14 legal officer for all legal matters arising from the conduct

15 of the functions of the Agency. The General Counsel shall

16 be compensated at the rate provided for level V of the Ex17 ecutive Schedule under section 5316 of title 5, United

18 States Code.

19 SEC. 4053. FUNCTIONS OF DEFENSE NUCLEAR PROGRAMS

20 AGENCY.

21 (a) IN GENERAL.—The Under Secretary for Defense

22 Nuclear Programs shall be responsible for the exercise of

23 all powers and the discharge of all duties of the Agency.

24 (b) TRANSFERRED FUNCTIONS.—The Under Sec25 retary for Defense Nuclear Programs shall carry out all
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1 functions transferred to the Under Secretary pursuant to

2 section 4054.

3 (c) STAFF DIRECTOR OF NUCLEAR WEAPONS COUN4 CIL.—Paragraph (2) of section 179(c) of title 10, United

5 States Code, is amended to read as follows:

6 ‘‘(2) The Under Secretary for Defense Nuclear Pro7 grams shall be the Staff Director of the Council.’’.

8 SEC. 4054. TRANSFERS OF FUNCTIONS.

9 (a) DEPARTMENT OF ENERGY.—(1) There are here10 by transferred to the Under Secretary for Defense Nuclear

11 Programs all functions performed by the Department of

12 Energy on the day before the date of the enactment of

13 this subtitle relating to the national security functions of

14 the Department, including defense, nonproliferation, and

15 defense-related environmental management programs.

16 (2) There are hereby transferred to the Under Sec17 retary for Defense Nuclear Programs all functions per18 formed by the Department of Energy on the day before

19 the date of the enactment of this subtitle relating to the

20 oversight of the defense and nondefense functions and

21 budgets of the following laboratories:

22 (A) Sandia National Laboratories, Albuquerque,

23 New Mexico, and Livermore, California.

24 (B) Los Alamos National Laboratory, Los Ala25 mos, New Mexico.
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1 (C) Lawrence Livermore National Laboratory,

2 California.

3 (b) DEFENSE NUCLEAR AGENCY.—There are hereby

4 transferred to the Under Secretary for Defense Nuclear

5 Programs all functions performed by the Defense Nuclear

6 Agency of the Department of Defense on the day before

7 the date of the enactment of this subtitle relating to nu8 clear weapons systems.

9 (c) DEFENSE NUCLEAR FACILITIES SAFETY

10 BOARD.—There are hereby transferred to the Under Sec11 retary for Defense Nuclear Programs all functions per12 formed by the Defense Nuclear Facilities Safety Board on

13 the day before the date of the enactment of this subtitle.

14 (d) OTHER NUCLEAR WEAPONS-RELATED FUNC15 TIONS.—The Secretary of Defense may transfer to the

16 Under Secretary for Defense Nuclear Programs such

17 other functions performed in the Department of Defense

18 on the day before the date of the enactment of this subtitle

19 relating to nuclear weapons as the Secretary considers ap20 propriate.

21 (e) CONFORMING REPEALS.—

22 (1) ASSISTANT TO THE SECRETARY OF DE23 FENSE FOR ATOMIC ENERGY.—Section 141 of title

24 10, United States Code, is hereby repealed. The

25 table of sections at the beginning of chapter 4 of
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1 such title is amended by striking out the item relat2 ing to such section.

3 (2) DEFENSE NUCLEAR FACILITIES SAFETY

4 BOARD.—Chapter 21 of the Atomic Energy Act of

5 1954 (42 U.S.C. 2286) is hereby repealed.

6 (3) REFERENCES.—Any reference to the Assist7 ant Secretary of Defense for Atomic Energy or the

8 Defense Nuclear Facilities Safety Board in any pro9 vision of law or in any rule, regulation, or other

10 paper of the United States shall be treated as refer11 ring to the Under Secretary for Defense Nuclear

12 Programs.

13 SEC. 4055. LIMITATION ON TRANSFERS OF FUNDS.

14 No amount appropriated to the Agency may be trans15 ferred to any other account (other than another account

16 of the Agency) unless the transfer of such amount to such

17 account is specifically authorized by law. No amount ap18 propriated to the Department of Defense or another de19 partment or agency may be transferred to the Under Sec20 retary for Defense Nuclear Programs or to an account for

21 the Agency unless the transfer of such amount to such

22 account is specifically authorized by law.

23 SEC. 4056. TRANSITION PROVISIONS.

24 (a) EXERCISE OF AUTHORITIES.—Except as other25 wise provided by law, the Under Secretary for Defense
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1 Nuclear Programs may, for purposes of performing a

2 function that is transferred to the Under Secretary by this

3 chapter, exercise all authorities under any other provision

4 of law that were available with respect to the performance

5 of that function to the official responsible for the perform6 ance of that function on the day before the date of the

7 enactment of this subtitle.

8 (b) AUTHORITIES TO WIND UP AFFAIRS.—

9 (1) IN GENERAL.—(A) The Director of the Of10 fice of Management and Budget may take such ac11 tions as the Director considers necessary to wind up

12 any outstanding affairs of the Department of En13 ergy associated with the functions that are trans14 ferred pursuant to section 4054(a).

15 (B) The Secretary of Defense may take such

16 actions as the Secretary considers necessary to wind

17 up any outstanding affairs of the Defense Nuclear

18 Agency associated with the functions that are trans19 ferred pursuant to section 4054(b), any outstanding

20 affairs of the Department of Defense associated with

21 any functions that may be transferred pursuant to

22 section 4054(d), and any outstanding affairs of the

23 Assistant to the Secretary of Defense for Atomic

24 Energy.
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•HR 1923 IH

1 (C) The Secretary of the Navy may take such

2 actions as the Secretary considers necessary to wind

3 up any outstanding affairs of the Strategic Systems

4 Programs of the Department of the Navy associated

5 with the functions that are transferred pursuant to

6 section 4054(c).

7 (D) The Director of the Office of Management

8 and Budget may take such actions as the Director

9 considers necessary to wind up any outstanding af10 fairs of the Defense Nuclear Facilities Safety Board.

11 (2) TRANSFER OF ASSETS.—So much of the

12 personnel, property, records, and unexpended bal13 ances of appropriations, allocations, and other funds

14 employed, used, held, available, or to be made avail15 able in connection with a function transferred to the

16 Under Secretary for Defense Nuclear Programs by

17 this chapter are transferred to the Under Secretary

18 for use in connection with the functions transferred.

19 (3) FURTHER MEASURES AND DISPOSITIONS.—

20 Such further measures and dispositions as the Presi21 dent considers necessary to effectuate the transfers

22 referred to in subsection (b) shall be carried out in

23 such manner as the President directs and by the

24 heads of such agencies as the President designates.
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•HR 1923 IH

1 SEC. 4057. TECHNICAL AND CONFORMING AMENDMENTS.

2 (a) INSPECTOR GENERAL ACT OF 1978.—Section 11

3 of the Inspector General Act of 1978 (5 U.S.C. App.) is

4 amended—

5 (1) in paragraph (1), by inserting after ‘‘Inter6 national Development,’’ the following: ‘‘the Defense

7 Nuclear Programs Agency,’’; and

8 (2) in paragraph (2), by striking out ‘‘or the

9 Social Security Administration;’’ and inserting in

10 lieu thereof ‘‘the Social Security Administration, or

11 the Defense Nuclear Programs Agency;’’.

12 (b) EXECUTIVE SCHEDULE.—(1) Section 5313 of

13 title 5, United States Code, is amended by adding at the

14 end the following:

15 ‘‘Under Secretary for Defense Nuclear Pro16 grams.’’.

17 (2) Section 5314 of title 5, United States Code, is

18 amended by adding at the end the following:

19 ‘‘Deputy Under Secretary for Defense Nuclear

20 Programs.’’.

21 (3) Section 5315 of title 5, United States Code, is

22 amended by adding at the end the following:

23 ‘‘Assistant Secretaries, Defense Nuclear Pro24 grams Agency (4).

25 ‘‘Inspector General, Defense Nuclear Programs

26 Agency.’’.
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•HR 1923 IH

1 (4) Section 5316 of title 5, United States Code, is

2 amended by adding at the end the following:

3 ‘‘General Counsel, Defense Nuclear Programs

4 Agency.’’.

5 SEC. 4058. EFFECTIVE DATE AND TRANSITION PERIOD.

6 (a) EFFECTIVE DATE.—Except as provided in sub7 section (b), this chapter shall take effect on the date of

8 the enactment of this subtitle.

9 (b) DELAYED EFFECTIVE DATE FOR ESTABLISH10 MENT OF AGENCY AND TRANSFERS OF FUNCTIONS.—

11 Section 4052(a) and section 4054 of this chapter shall

12 take effect one year after the date of the enactment of

13 this subtitle.

14 (c) TRANSITION PERIOD.—The Secretary of Defense,

15 the Secretary of Energy, the Assistant to the Secretary

16 of Defense for Atomic Energy, and the Defense Nuclear

17 Facilities Safety Board shall, beginning as soon as prac18 ticable after the date of the enactment of this subtitle,

19 plan for the orderly establishment of, and transfer of func20 tions to, the Agency pursuant to this chapter.

21 (d) APPOINTMENT AUTHORITY.—The President may

22 make appointments under section 4052 notwithstanding

23 the delayed effective date under subsection (b) for the es24 tablishment of the Agency.
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1 SEC. 4059. ENVIRONMENTAL RESTORATION ACTIVITIES AT

2 DEFENSE NUCLEAR FACILITIES.

3 (a) AMENDMENT TO CERCLA.—The Comprehensive

4 Environmental Response, Compensation, and Liability Act

5 of 1980 (42 U.S.C. 9601 et seq.) is amended by adding

6 at the end the following new title:

7 ‘‘TITLE IV—ENVIRONMENTAL

8 RESTORATION ACTIVITIES AT

9 DEFENSE NUCLEAR FACILI10 TIES

‘‘Subtitle A—General Provisions

‘‘Sec. 401. Applicability.

‘‘Sec. 402. Definitions.

‘‘Subtitle B—Selection of Remedial Action

‘‘Sec. 411. Review of ongoing and planned remedial actions.

‘‘Sec. 412. Selection of remedial action.

‘‘Sec. 413. Site-specific risk assessment.

‘‘Sec. 414. Analysis of risk reduction benefits and costs.

11 ‘‘Subtitle A—General Provisions

12 ‘‘SEC. 401. APPLICABILITY.

13 ‘‘Notwithstanding section 120, the provisions of this

14 title shall apply with respect to selection of remedial ac15 tions at defense nuclear facilities.

16 ‘‘SEC. 402. DEFINITIONS.

17 ‘‘For purposes of this title:

18 ‘‘(1) The term ‘defense nuclear facility’

19 means—
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•HR 1923 IH

1 ‘‘(A) a production facility or utilization fa2 cility (as those terms are defined in section 11

3 of the Atomic Energy Act of 1954 (42 U.S.C.

4 2014)) that is under the control or jurisdiction

5 of the Under Secretary of Defense for Defense

6 Nuclear Programs and that is operated for na7 tional security purposes (including the tritium

8 loading facility at Savannah River, South Caro9 lina, the 236 H facility at Savannah River,

10 South Carolina; and the Mound Laboratory,

11 Ohio), but the term does not include any facil12 ity that does not conduct atomic energy defense

13 activities and does not include any facility or

14 activity covered by Executive Order Number

15 12344, dated February 1, 1982, pertaining to

16 the naval nuclear propulsion program;

17 ‘‘(B) a nuclear waste storage or disposal

18 facility that is under the control or jurisdiction

19 of the Under Secretary of Defense for Defense

20 Nuclear Programs;

21 ‘‘(C) a testing and assembly facility that is

22 under the control or jurisdiction of the Under

23 Secretary of Defense for Defense Nuclear Pro24 grams and that is operated for national security

25 purposes (including the Nevada Test Site, Ne-
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•HR 1923 IH

1 vada; the Pinnellas Plant, Florida; and the

2 Pantex facility, Texas);

3 ‘‘(D) an atomic weapons research facility

4 that is under the control or jurisdiction of the

5 Under Secretary of Defense for Defense Nu6 clear Programs (including the Lawrence Liver7 more, Los Alamos, and Sandia National Lab8 oratories); or

9 ‘‘(E) any facility described in paragraphs

10 (1) through (4) that—

11 ‘‘(i) is no longer in operation;

12 ‘‘(ii) was under the control or jurisdic13 tion of the Department of Defense, the

14 Atomic Energy Commission, the Energy

15 Research and Development Administration,

16 or the Department of Energy; and

17 ‘‘(iii) was operated for national secu18 rity purposes.

19 ‘‘(2) The term ‘Under Secretary’ means the Under

20 Secretary of Defense for Defense Nuclear Programs.

21 ‘‘(3) The term ‘Administrator’ means the Adminis22 trator of the Environmental Protection Agency.
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•HR 1923 IH

1 ‘‘Subtitle B—Selection of Remedial

2 Action

3 ‘‘SEC. 411. REVIEW OF ONGOING AND PLANNED REMEDIAL

4 ACTIONS.

5 ‘‘REVIEW OF ONGOING AND PLANNED ACTIVITIES.—

6 (1) Not later than one year after the date of the enactment

7 of this title, the Under Secretary shall review each reme8 dial action described in paragraph (2) for purposes of de9 termining whether the remedial action was selected in a

10 manner consistent with the requirements of this subtitle.

11 If the Under Secretary determines the selection was not

12 consistent with the requirements of this subtitle, the

13 Under Secretary shall require the remedial action to be

14 halted and a new remedial action selected in a manner

15 consistent with the requirements of this subtitle.

16 ‘‘(2) Paragraph (1) applies to any remedial action at

17 a defense nuclear facility—

18 ‘‘(A) which is ongoing as of the date of the en19 actment of this title, including a facility for which

20 construction is ongoing or has been completed as of

21 such date; or

22 ‘‘(B) for which construction is planned but has

23 not yet commenced as of such date of enactment.
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•HR 1923 IH

1 ‘‘SEC. 412. SELECTION OF REMEDIAL ACTION.

2 ‘‘(a) IN GENERAL.—The Under Secretary shall select

3 a remedial action for a defense nuclear facility based upon

4 consideration of a site-specific risk assessment conducted

5 in accordance with section 413 and an analysis of risk re6 duction benefits and costs conducted in accordance with

7 section 414.

8 ‘‘(b) REQUIREMENT FOR LOWEST COST ACTION.—

9 In selecting a remedial action, the Under Secretary shall

10 select the lowest cost action which achieves a residual risk

11 that is within the risk range goal established by the Na12 tional Contingency Plan for protection of public health

13 and the environment, unless—

14 ‘‘(1) the incremental benefits of a more expen15 sive remedial action justify incurring the incremental

16 costs of the more expensive remedy, as set forth in

17 the analysis of risk reductions cost and benefits for

18 the remedial action pursuant to section 414, in

19 which case a more expensive remedy may be se20 lected, or

21 ‘‘(2) the benefits of the lowest cost remedy

22 which achieves a residual risk level within the risk

23 range goal are not reasonably related to the costs of

24 such remedy, in which case a less expensive remedy

25 may be selected.
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•HR 1923 IH

1 ‘‘(c) CONSULTATION.—Before selection a remedial

2 action and before public comment under subsection (d),

3 the Under Secretary shall consult with the Administrator,

4 officials of State, local, or tribal governments having juris5 diction over the property or, in the case of property which

6 is exclusively under Federal jurisdiction, having jurisdic7 tion over the surrounding areas. Such consultation shall

8 include discussion of, at a minimum, current area demo9 graphics, land and water uses, and currently planned land

10 and water uses, the determination of which shall remain

11 the sole purview of the appropriate State, local, or tribal

12 government with jurisdiction.—

13 ‘‘(d) PUBLIC COMMENT.—Before selection of a reme14 dial action, the Under Secretary shall provide a period of

15 not less than 30 days for public comment on the remedial

16 action.

17 ‘‘(e) CERTIFICATION.—The Under Secretary shall

18 certify the following when selecting a remedial action:

19 ‘‘(1) That the analysis of risk reduction benefits

20 and costs for the remedial action pursuant to section

21 414 is based on objective and unbiased scientific and

22 economic evaluations of all significant and relevant

23 information and on risk assessments provided to the

24 agency by interested parties relating to the costs,
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•HR 1923 IH

1 risks, and risk reduction and other benefits of the

2 remedial action selected.

3 ‘‘(2) That the incremental risk reduction or

4 other benefits of the remedial action will be likely to

5 justify, and be reasonably related to, the incremental

6 costs incurred by the Federal Government, by State,

7 local, and tribal governments, and other public and

8 private entities.

9 ‘‘(3) That other alternative remedial actions

10 identified or considered by the agency were found to

11 be less cost-effective at achieving a substantially

12 equivalent reduction in risk.

13 ‘‘(f) ADMINISTRATIVE RECORD.—All documents con14 sidered by the Under Secretary shall be made part of the

15 administrative record for purposes of judicial review.

16 ‘‘SEC. 413. SITE-SPECIFIC RISK ASSESSMENT.

17 ‘‘(a) IN GENERAL.—(1) A site-specific risk assess18 ment shall be performed in accordance with this section

19 before the selection of a remedial action at a defense nu20 clear facility. The Under Secretary shall apply the prin21 ciples set forth in subsection (b) in order to ensure that

22 a site-specific risk assessment—

23 ‘‘(A) distinguishes scientific findings from other

24 considerations;
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•HR 1923 IH

1 ‘‘(B) is, to the extent feasible, scientifically ob2 jective, unbiased, and inclusive of all relevant data;

3 and

4 ‘‘(C) relies, to the extent available and prac5 ticable, on factual site-specific data.

6 ‘‘(2) Discussions or explanations required under this

7 section need not be repeated in each risk assessment docu8 ment as long as there is a reference to the relevant discus9 sions or explanation in another agency document which

10 is available to the public.

11 ‘‘(b) PRINCIPLES.—The principles to be applied in

12 conducting a site-specific risk assessment are as follows:

13 ‘‘(1) When discussing human health risks, a

14 site-specific risk assessment shall contain a discus15 sion of both relevant laboratory and relevant epi16 demiologic data of sufficient quality which finds, or

17 fails to find, a correlation between health risks and

18 a potential toxin or activity. Where conflicts among

19 such data appear to exist, or where animal data is

20 used as a basis to assess human health, the site-spe21 cific risk assessment shall, to the extent feasible and

22 appropriate, include discussion of possible reconcili23 ation of conflicting information, and, as relevant,

24 differences in study designs, comparative physiology,

25 routes of exposure, bioavailability, pharmacokinetics,
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•HR 1923 IH

1 and any other relevant factor, including the suffi2 ciency of basic data for review. The discussion of

3 possible reconciliation should indicate whether there

4 is a biological basis to assume a resulting harm in

5 humans. Animal data shall be reviewed with regard

6 to its relevancy to humans.

7 ‘‘(2) Where a site-specific risk assessment in8 volves selection of any significant default value, as9 sumption, inference, or model, the risk assessment

10 document shall, to the extent feasible—

11 ‘‘(A) present a representative list and ex12 planation of plausible and alternative assump13 tions, inferences, or models;

14 ‘‘(B) explain the basis for any choices;

15 ‘‘(C) identify any policy or value judg16 ments;

17 ‘‘(D) fully describe any model used in the

18 risk assessment and make explicit the assump19 tions incorporated in the model; and

20 ‘‘(E) indicate the extent to which any sig21 nificant model has been validated by, or con22 flicts with, empirical data.

23 ‘‘(3) The site-specific risk assessment shall

24 meet each of the following requirements regarding

25 risk characterization and communication:
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•HR 1923 IH

1 ‘‘(A) The risk characterization shall de2 scribe the populations or natural resources

3 which are the subject of the risk characteriza4 tion. If a numerical estimate of risk is provided,

5 the agency shall, to the extent feasible, pro6 vide—

7 ‘‘(i) the best estimate or estimates for

8 the specific populations or natural re9 sources which are the subject to the char10 acterization (based on the information

11 available to the Federal agency); and

12 ‘‘(ii) a statement of the reasonable

13 range of scientific uncertainties.

14 In addition to such best estimate or estimates,

15 the risk characterization document may present

16 plausible upper-bound or conservative estimates

17 in conjunction with plausible lower-bound esti18 mates. Where appropriate, the risk character19 ization document may present, in lieu of a sin20 gle best estimate, multiple best estimates based

21 on assumptions, inferences, or models which are

22 equally plausible, given current scientific under23 standing. To the extent practicable and appro24 priate, the document shall provide descriptions

25 of the distribution and probability of risk esti-
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•HR 1923 IH

1 mates to reflect differences in exposure varia2 bility or sensitivity in populations and attend3 ance uncertainties. Sensitive subpopulations or

4 highly exposed subpopulations include, where

5 relevant and appropriate, children, the elderly,

6 pregnant women, and disabled persons.

7 ‘‘(B) Exposure scenarios shall be based on

8 actual exposure pathways and currently planned

9 future land and water uses as established by

10 any local governmental authorities with jurisdic11 tion over the property and shall consider the

12 availability of alternative water supplies. To the

13 extent feasible, the site-specific risk assessment

14 shall include a statement of the size of the pop15 ulation at risk under any proposed exposure

16 scenario and the likelihood of such scenario.

17 Exposure scenarios shall explicitly identify

18 those exposure scenarios which result in plau19 sible completed exposure pathways.

20 ‘‘(C) A site-specific risk assessment shall

21 contain a statement that places the magnitude

22 of risks to human health, safety, or the environ23 ment in context. Such statement shall, to the

24 extent feasible, provide comparisons with esti25 mates of greater, lesser, and substantially
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•HR 1923 IH

1 equivalent risks that are familiar to and rou2 tinely encountered by the general public as well

3 as other risks, and where appropriate and

4 meaningful, comparisons of those risks with

5 other similar risks regulated by the Federal

6 agency resulting from comparable activities and

7 exposure pathways. Such comparisons should

8 consider relevant distinctions among risks, such

9 as the voluntary or involuntary nature of risks

10 and the preventability or nonpreventability of

11 risks.

12 ‘‘(D) Each site-specific risk assessment

13 shall include a statement of any significant sub14 stitution risks to human health, where informa15 tion on such risks has been provided to the

16 Under Secretary.

17 ‘‘(E) If a commenter provides the Under

18 Secretary with a relevant risk assessment and a

19 summary thereof in a timely fashion and the

20 risk assessment is consistent with the principles

21 and the guidance provided under this section,

22 the Under Secretary shall, to the extent fea23 sible, present such summary in connection with

24 the presentation of the site-specific risk assess25 ment. Nothing in this paragraph shall be con-
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•HR 1923 IH

1 strued to limit the inclusion of any comments or

2 material supplied by any person to the adminis3 trative record of any proceeding.

4 ‘‘(4) A site-specific risk assessment may satisfy

5 the requirements of subparagraph (C), (D), or (E)

6 of paragraph (3) by reference to information or ma7 terial otherwise available to the public if the docu8 ment provides a brief summary of such information

9 or material.

10 ‘‘SEC. 414. ANALYSIS OF RISK REDUCTION BENEFITS AND

11 COSTS.

12 ‘‘(a) IN GENERAL.—The Under Secretary shall pre13 pare an analysis of risk reduction benefits and costs in

14 accordance with this section before the selection of a reme15 dial action at a defense nuclear facility.

16 ‘‘(b) CONTENTS OF ANALYSIS.—An analysis of risk

17 reduction benefits and costs for a remedial action shall

18 contain the following:

19 ‘‘(1) An identification of reasonable alternative

20 strategies, including strategies that are proposed

21 during a public comment period.

22 ‘‘(2) An analysis of the incremental costs and

23 incremental risk reduction or other benefits associ24 ated with each alternative remedial action identified

25 or considered. Costs and benefits shall be quantified
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•HR 1923 IH

1 to the extent feasible and appropriate and may oth2 erwise be qualitatively described.

3 ‘‘(3) A statement that places in context the na4 ture and magnitude of the risks to be addressed and

5 the residual risks likely to remain for each alter6 native strategy identified or considered by the Under

7 Secretary. Such statement shall, to the extent fea8 sible, provide comparisons with estimates of greater,

9 lesser, and substantially equivalent risks that are fa10 miliar to and routinely encountered by the general

11 public as well as other risks and, where appropriate

12 and meaningful, comparisons of those risks with

13 other similar risks regulated by the Federal Govern14 ment resulting from comparable activities and expo15 sure pathways. Such comparisons should consider

16 relevant distinctions among risks, such as the vol17 untary or involuntary nature of risks and the pre18 ventability or nonpreventability of risks.

19 ‘‘(4) An analysis of whether the identified bene20 fits of the remedial action are likely to exceed the

21 identified costs of the remedial action.’’.

22 (b) CONFORMING AMENDMENT.—Section 120(a)(3)

23 of the Comprehensive Environmental Response, Com24 pensation, and Liability Act of 1980 (42 U.S.C.

25 9620(a)(3)) is amended by inserting after the second sen-
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1 tence the following: ‘‘This subsection also shall not apply

2 to the extent otherwise provided in title IV with respect

3 to selection of remedial actions at defense nuclear facili4 ties.’’.

5 (c) RENEGOTIATION OF COMPLIANCE AGREE6 MENTS.—

7 (1) REQUIREMENT.—For each defense nuclear

8 facility with respect to which a compliance agree9 ment has been entered into by the Secretary of En10 ergy, the Environmental Protection Agency, and a

11 State as of the date of the enactment of this sub12 title, the Under Secretary of Defense for Defense

13 Nuclear Programs shall enter into negotiations with

14 the Environmental Protection Agency and the State

15 concerned to renegotiate the terms of the compliance

16 agreement to reflect title IV of the Comprehensive

17 Environmental Response, Compensation, and Liabil18 ity Act of 1980, as added by subsection (a).

19 (2) DEADLINE.—The Under Secretary of De20 fense for Defense Nuclear Programs shall complete

21 renegotiation of compliance agreements as required

22 by paragraph (1) not later than one year after the

23 date of the enactment of this subtitle.
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1 CHAPTER 6—DISPOSITION OF MIS2 CELLANEOUS PARTICULAR PRO3 GRAMS, FUNCTIONS, AND AGENCIES

4 OF DEPARTMENT

5 SEC. 4061. ENERGY RESEARCH AND DEVELOPMENT.

6 (a) GENERAL RULE.—Except as otherwise provided

7 in this subtitle, Energy Supply Research and Development

8 activities of the Department of Energy, including Basic

9 Energy Sciences, Magnetic Fusion Energy, Solar and Re10 newable Energy, Nuclear Fission, and Biological and En11 vironmental Sciences research and development, and all

12 other research and development activities of the Depart13 ment of Energy other than General Science and Research

14 activities, shall be terminated within 2 years after the ef15 fective date stated in section 4064(a).

16 (b) CRITICAL RESEARCH.—

17 (1) ADMINISTRATOR.—Within 1 year of the

18 date of the enactment of this Act, the Administrator

19 shall identify in a report to Congress all research

20 and development activities of the Department of En21 ergy, other than activities carried out at energy lab22 oratories (as such term is defined in section 4028(5)

23 of this subtitle), that perform a critical research

24 function of importance to the long-term economic

25 wellbeing of the United States. Such report shall in-
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1 clude recommendations for the transfer of such ac2 tivities to appropriate Federal agencies.

3 (2) ENERGY LABORATORY FACILITIES COMMIS4 SION.—Within 1 year of the date of the enactment

5 of this Act, the Energy Laboratory Facilities Com6 mission established under section 4021(a) of this

7 subtitle shall identify in a report to Congress all re8 search and development activities of the Department

9 of Energy carried out at energy laboratories (as

10 such term is defined in section 4028(5) of this sub11 title), that perform a critical research function of

12 importance to the long-term economic wellbeing of

13 the United States. Such report shall include rec14 ommendations for the transfer of such activities to

15 appropriate Federal agencies.

16 (3) COORDINATION.—The Administrator and

17 the Energy Laboratory Facilities Commission shall

18 coordinate the execution of their respective respon19 sibilities under paragraphs (1) and (2).

20 (c) TERMINATION OF PROGRAMS.—

21 (1) CLEAN COAL TECHNOLOGY.—The Secretary

22 of Energy shall terminate all clean coal technology

23 research and development activities of the Depart24 ment of Energy.
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1 (2) FOSSIL ENERGY AND ENERGY CONSERVA2 TION.—There are authorized to be appropriated to

3 the Secretary of Energy—

4 (A) for fossil energy research and develop5 ment activities of the Department of Energy—

6 (i) $150,000,000 for fiscal year 1996;

7 (ii) $135,000,000 for fiscal year 1997;

8 and

9 (iii) $120,000,000 for fiscal year

10 1998; and

11 (B) for energy conservation research and

12 development activities of the Department of En13 ergy—

14 (i) $427,000,000 for fiscal year 1996;

15 (ii) $412,000,000 for fiscal year 1997;

16 and

17 (iii) $397,000,000 for fiscal year

18 1998.

19 The fossil energy and energy conservation research

20 and development activities of the Department of En21 ergy shall be terminated at the end of fiscal year

22 1998.

23 (d) TRANSFER OF PROGRAMS.—The following activi24 ties of the Department of Energy shall, no later than 60
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1 days after the date of the enactment of this Act, be trans2 ferred to the Department of Defense:

3 (1) All activities described under the category

4 ‘‘Weapons Activities’’ in the annual budget request

5 of the President for fiscal year 1996, including

6 weapons stockpile stewardship and management.

7 (2) All activities described under the category

8 ‘‘Materials Support and Other Defense Programs’’

9 in the annual budget request of the President for

10 fiscal year 1996.

11 (e) PROGRESS REPORTS.—The Secretary of Energy

12 shall, every 90 days after the date of the enactment of

13 this Act until the completion of the execution of sub14 sections (c) and (d), transmit to the Congress a report

15 on the progress made toward such execution.

16 SEC. 4062. ENERGY INFORMATION ADMINISTRATION.

17 There are hereby transferred to the Department of

18 the Treasury all functions performed by the Energy Infor19 mation Administration on the day before the effective date

20 of this section. There are authorized to be appropriated

21 for carrying out the activities of the Energy Information

22 Administration $44,000,000 for each of the fiscal years

23 1996 through 2000.
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1 SEC. 4063. ENERGY REGULATORY ADMINISTRATION.

2 (a) TRANSFER OF INTERNATIONAL REGULATORY

3 FUNCTIONS.—There are hereby transferred to the Sec4 retary of Agriculture all international regulatory functions

5 performed by the Energy Regulatory Administration on

6 the day before the effective date of this section.

7 (b) TRANSFER OF LITIGATION FUNCTIONS.—There

8 are hereby transferred to the Attorney General all func9 tions performed by the Energy Regulatory Administration

10 with respect to pending litigation on the day before the

11 effective date of this section.

12 SEC. 4064. EFFECTIVE DATE.

13 (a) GENERAL RULE.—Except as provided in sub14 section (b), this chapter shall take effect on the date speci15 fied in section 4019(a) of this subtitle.

16 (b) EXCEPTIONS.—Section 4061(c), (d), and (e),

17 shall take effect on the date of the enactment of this Act.

18 CHAPTER 7—INTERIM WASTE STORAGE

19 SEC. 4071. WASTE SITE WORK UNDER NUCLEAR WASTE

20 POLICY ACT OF 1982.

21 All work under subtitles A and B of title I of the

22 Nuclear Waste Policy Act of 1982 shall be terminated 90

23 days after the date of the enactment of this Act.
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1 SEC. 4072. OFFICE OF CIVILIAN RADIOACTIVE WASTE MAN2 AGEMENT.

3 Effective upon the expiration of the third calendar

4 month beginning after the date of the enactment of this

5 Act, section 304 of the Nuclear Waste Policy Act of 1982

6 (42 U.S.C. 10224) is amended to read as follows:

7 ‘‘UNITED STATES GEOLOGICAL SURVEY

8 ‘‘SEC. 304. The Office of Civilian Radioactive Waste

9 Management (referred to in this section as the ‘office’)

10 is terminated and the authority and assets of the office

11 with respect to its activities under title I respecting a re12 pository for radioactive waste and spent nuclear fuel is

13 transferred to the United States Geological Survey (re14 ferred to in this section as the ‘USGS’).’’.

15 SEC. 4073. INTERIM STORAGE AT FEDERAL FACILITY.

16 (a) AUTHORIZATION AND LOCATION OF FEDERAL

17 FACILITY.—

18 (1) SITE.—The Corps of Engineers shall de19 sign, construct, and operate a facility for the interim

20 storage of high-level radioactive waste and spent nu21 clear fuel. The Nuclear Waste Technical Review

22 Board established under title V of the Nuclear

23 Waste Policy Act of 1982 shall select the site for the

24 facility. The United States Geological Survey shall

25 conduct site characterization, in accordance with sec26 tion 131 of such Act (42 U.S.C. 10133), of the site
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1 selected by such Board. Such site shall be at a loca2 tion under the jurisdiction of the Department of En3 ergy.

4 (2) LICENSE.—The interim storage facility

5 shall be licensed by the Commission in accordance

6 with its regulations governing the licensing of inde7 pendent high-level radioactive waste and spent fuel

8 storage installations, as modified in accordance with

9 this section, and shall commence operation as soon

10 as practicable.

11 (b) CAPACITY.—The interim storage facility shall be

12 designed to provide sufficient capacity to store high-level

13 radioactive waste and spent nuclear fuel from civilian nu14 clear power plants until the Corps of Engineers is able

15 to transfer the high-level radioactive waste and spent fuel.

16 In no event shall the design capacity of the interim storage

17 facility be less than 40,000 MTU and the capacity of such

18 facility shall be expandable.

19 (c) DESIGN.—The interim storage facility shall sat20 isfy the following design criteria:

21 (1) The design shall be expandable so that ad22 ditional storage capacity can be added as necessary.

23 (2) To the extent practicable, the design shall

24 be based on the use of multi-purpose canister sys25 tems developed under section 4025 and certified by
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1 the Commission for the storage and transportation

2 of high-level radioactive waste and spent nuclear

3 fuel.

4 (3) Consistent with the design objective speci5 fied in paragraph (2), the design shall provide for

6 the use of such other storage technologies as are li7 censed or certified by the Commission for use at the

8 interim storage facility as necessary to ensure com9 patibility between the interim storage facility and

10 contract holders’ high-level radioactive waste and

11 spent nuclear fuel and facilities, and to facilitate the

12 Corps of Engineers’s ability to meet the Corps of

13 Engineers’s obligations under this title.

14 (d) LICENSING.—

15 (1) No later than 6 months from the date of

16 enactment of this Act, the Corps of Engineers shall

17 submit to the Commission an application for a li18 cense for the interim storage facility pursuant to the

19 Commission’s regulations governing the licensing of

20 independent high-level radioactive waste and spent

21 fuel storage installations. Such license application

22 shall be accompanied by a Safety Analysis Report

23 and an Environmental Report, as required by such

24 regulations.
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1 (2) No later than 3 months from the date of

2 enactment of this Act, the Commission shall amend

3 its regulations governing the licensing of independ4 ent high-level radioactive waste and spent fuel stor5 age installations as necessary and appropriate to

6 carry out the purposes of this section. Such amend7 ments shall incorporate the following provisions—

8 (A) the license shall be issued in phases as

9 necessary to support the commencement of op10 erations at the interim storage facility as soon

11 as practicable, but no later than January 31,

12 1998;

13 (B) the license shall authorize a storage

14 capacity of no less than 40,000 MTU, except

15 that the Commission may license an initial stor16 age capacity of less than 40,000 MTU in ac17 cordance with subparagraph (A) to permit the

18 commencement of operations; and

19 (C) the license shall be issued for an initial

20 term of up to 100 years, and shall be renewable

21 for additional terms upon application of the

22 Corps of Engineers.

23 (3) The Commission shall consider the Corps of

24 Engineers’s license application in accordance with

25 the provisions of this title and the Commission’s reg-
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•HR 1923 IH

1 ulations governing the licensing of independent high2 level radioactive waste and spent fuel storage instal3 lations, as amended in accordance with this title, ex4 cept that the Commission shall issue a final decision

5 granting or denying the license no later than 18

6 months from the date of the submittal of the license

7 application.

8 (e) ADDITIONAL AUTHORITY.—

9 (1) The Corps of Engineers is authorized to

10 commence construction of the interim storage facil11 ity subsequent to submittal of the license applica12 tion. The Commission shall issue an order suspend13 ing such construction at any time if the Commission

14 determines that such construction poses an unrea15 sonable risk to public health and safety or the envi16 ronment. The Commission shall terminate all or part

17 of such order upon a determination that the Corps

18 of Engineers has taken appropriate action to elimi19 nate such risk.

20 (2) For a temporary period beginning with issu21 ance of the license for the interim storage facility,

22 the Commission shall authorize the Corps of Engi23 neers, at the Corps of Engineers’ request, to utilize

24 any facility owned by the Federal Government on

25 the date of enactment of this Act and within the
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•HR 1923 IH

1 boundaries of the interim storage facility site,

2 whether or not such facility is licensed by the Com3 mission, in connection with the storage, transpor4 tation, and handling of high-level radioactive waste

5 and spent nuclear fuel at the interim storage facility

6 if the Commission establishes reasonable terms and

7 conditions for use of such facility in the license for

8 the interim storage facility and if the Commission

9 oversees the use of such facility to assure that such

10 use does not pose an unreasonable risk to public

11 health and safety and the environment.

12 (f) NATIONAL ENVIRONMENTAL POLICY ACT OF

13 1969.—

14 (1) The Corps of Engineers shall comply with

15 any environmental requirements imposed by Com16 mission regulations applicable to the licensing of

17 independent high-level radioactive waste and spent

18 fuel storage installations, including the required sub19 mission of environmental reports, in like manner as

20 a private applicant. No activity of the Corps of En21 gineers under this section, including the selection of

22 a site for the interim storage facility, the prepara23 tion and submittal of a license application for such

24 facility, and the construction and operation of such

25 facility shall be considered a major Federal action
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1 significantly affecting the quality of the human envi2 ronment for purposes of the National Environmental

3 Policy Act of 1969 (42 U.S.C. 4321 et seq.). No

4 such activity shall require the preparation of an en5 vironmental impact statement under section

6 102(2)(C) of the National Environmental Policy Act

7 of 1969 (42 U.S.C. 4332(2)(C)) or require any envi8 ronmental review under subparagraph (E) or (F) of

9 such Act.

10 (2)(A) Any licensing action by the Commission

11 under this section shall be accompanied by an Envi12 ronmental Impact Statement prepared under section

13 102(2)(C) of the National Environmental Policy Act

14 of 1969 (42 U.S.C. 4332(2)(C)). In preparing such

15 Environmental Impact Statement, the Commis16 sion—

17 (i) shall assume that 100,000 MTU will be

18 stored at the facility; and

19 (ii) shall analyze the impacts of the trans20 portation of high-level radioactive waste and

21 spent nuclear fuel to the interim storage facility

22 in a generic manner.

23 (B) Such Environmental Impact Statement

24 shall not consider—
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1 (i) the need for the interim storage facility,

2 including any individual component thereof;

3 (ii) the time of the initial availability of the

4 interim storage facility;

5 (iii) any alternatives to the storage of high6 level radioactive waste and spent nuclear fuel at

7 the interim storage facility;

8 (iv) any alternatives to the site of the facil9 ity as designated by the Corps of Engineers in

10 accordance with subsection (a);

11 (v) any alternatives to the design criteria

12 for such facility or any individual component

13 thereof, as specified by the Corps of Engineers

14 in the license application; or

15 (vi) the environmental impacts of the stor16 age of high-level radioactive waste and spent

17 nuclear fuel at the interim storage facility be18 yond the initial term of the license or the term

19 of the renewal period for which a license re20 newal application is made.

21 (g) STORAGE OF HIGH-LEVEL RADIOACTIVE WASTE

22 AND SPENT NUCLEAR FUEL.—The Corps of Engineers

23 shall begin storing high-level radioactive waste and spent

24 nuclear fuel at the interim storage facility at the earliest

25 practicable date, but no later than January 31, 1998. Sub-
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1 ject to the budget priorities established in section 4041,

2 all actions by the Corps of Engineers, the Commission,

3 the Corps of Engineers of the Interior, or any Federal

4 agency or officer with respect to consideration of applica5 tions or requests for the issuance or grant of any author6 ization related to the interim storage facility, including the

7 certification of multi-purpose canister systems, shall be ex8 pedited, and any such application or request shall take

9 precedence over any other activity not related to the in10 terim storage facility.

11 (h) JUDICIAL REVIEW.—

12 (1) The Corps of Engineers’ actions under this

13 section, including to the Corps of Engineers’ siting

14 and design of the interim storage facility, application

15 for a facility license, issuance of a Safety Analysis

16 Report and Environmental Report, and construction

17 of the facility, shall not be subject to judicial review

18 under any law.

19 (2) Judicial review of the Commission’s Envi20 ronmental Impact Statement shall be consolidated

21 with judicial review of the Commission’s licensing

22 decision.

23 (3) No court shall have jurisdiction to enjoin

24 the construction or operation of the interim storage
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1 facility prior to its final decision on review of the

2 Commission’s licensing action.

3 (i) WASTE CONFIDENCE.—The Corps of Engineers’

4 obligation to construct and operate the interim storage fa5 cility in accordance with this section and the Corps of En6 gineers’ obligation to develop an integrated high-level ra7 dioactive waste and spent nuclear fuel management sys8 tem in accordance with the provisions of this title, shall

9 provide sufficient and independent grounds for any further

10 findings by the Commission of reasonable assurance that

11 high-level radioactive waste and spent nuclear fuel and

12 high-level radioactive waste will be disposed of safely for

13 purposes of the Commission’s decision to grant or amend

14 any license to operate any civilian nuclear power reactor

15 under the Atomic Energy Act of 1954 (42 U.S.C. 2011

16 et seq.).

17 (j) STORAGE OF MATERIAL OTHER THAN COMMER18 CIAL HIGH-LEVEL RADIOACTIVE WASTE AND SPENT NU19 CLEAR FUEL.—

20 (1) Nothing contained in this section shall pro21 hibit—

22 (A) the Commission from establishing cri23 teria for the issuance of an amendment to the

24 interim storage facility license authorizing stor25 age of high-level radioactive waste or spent nu-
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1 clear fuel from atomic energy defense activities

2 in the interim storage facility; and

3 (B) the Corps of Engineers from seeking a

4 license amendment to allow for the storage of

5 high-level radioactive waste or spent nuclear

6 fuel from atomic energy defense activities at the

7 interim storage facility.

8 (2) The acceptance at the interim storage facil9 ity of high-level radioactive waste or spent nuclear

10 fuel resulting from atomic energy defense activities

11 shall not affect the acceptance of high-level radio12 active waste and spent nuclear fuel in accordance

13 with the acceptance schedule.

14 CHAPTER 8—MISCELLANEOUS

15 PROVISIONS

16 SEC. 4081. REFERENCES.

17 Any reference in any other Federal law, Executive

18 order, rule, regulation, or delegation of authority, or any

19 document of or pertaining to an office from which a func20 tion is transferred by this subtitle—

21 (1) to the Secretary of Energy or an officer of

22 the Department of Energy, is deemed to refer to the

23 head of the department or office to which such func24 tion is transferred; or
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1 (2) to the Department of Energy is deemed to

2 refer to the department or office to which such func3 tion is transferred.

4 SEC. 4082. EXERCISE OF AUTHORITIES.

5 Except as otherwise provided by law, a Federal offi6 cial to whom a function is transferred by this subtitle may,

7 for purposes of performing the function, exercise all au8 thorities under any other provision of law that were avail9 able with respect to the performance of that function to

10 the official responsible for the performance of the function

11 immediately before the effective date of the transfer of the

12 function under this subtitle.

13 SEC. 4083. SAVINGS PROVISIONS.

14 (a) LEGAL DOCUMENTS.—All orders, determinations,

15 rules, regulations, permits, grants, loans, contracts, agree16 ments, certificates, licenses, and privileges—

17 (1) that have been issued, made, granted, or al18 lowed to become effective by the President, the Sec19 retary of Energy, any officer or employee of any of20 fice transferred by this subtitle, or any other Gov21 ernment official, or by a court of competent jurisdic22 tion, in the performance of any function that is

23 transferred by this subtitle, and

24 (2) that are in effect on the effective date of

25 such transfer (or become effective after such date
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1 pursuant to their terms as in effect on such effective

2 date),

3 shall continue in effect according to their terms until

4 modified, terminated, superseded, set aside, or revoked in

5 accordance with law by the President, any other author6 ized official, a court of competent jurisdiction, or operation

7 of law.

8 (b) PROCEEDINGS.—This subtitle shall not affect any

9 proceedings or any application for any benefits, service,

10 license, permit, certificate, or financial assistance pending

11 on the date of the enactment of this Act before an office

12 transferred by this subtitle, but such proceedings and ap13 plications shall be continued. Orders shall be issued in

14 such proceedings, appeals shall be taken therefrom, and

15 payments shall be made pursuant to such orders, as if this

16 subtitle had not been enacted, and orders issued in any

17 such proceeding shall continue in effect until modified, ter18 minated, superseded, or revoked by a duly authorized offi19 cial, by a court of competent jurisdiction, or by operation

20 of law. Nothing in this subsection shall be considered to

21 prohibit the discontinuance or modification of any such

22 proceeding under the same terms and conditions and to

23 the same extent that such proceeding could have been dis24 continued or modified if this subtitle had not been enacted.
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1 (c) SUITS.—This subtitle shall not affect suits com2 menced before the date of the enactment of this Act, and

3 in all such suits, proceeding shall be had, appeals taken,

4 and judgments rendered in the same manner and with the

5 same effect as if this subtitle had not been enacted.

6 (d) NONABATEMENT OF ACTIONS.—No suit, action,

7 or other proceeding commenced by or against the Depart8 ment of Energy or the Secretary of Energy, or by or

9 against any individual in the official capacity of such indi10 vidual as an officer or employee of an office transferred

11 by this subtitle, shall abate by reason of the enactment

12 of this subtitle.

13 (e) CONTINUANCE OF SUITS.—If any officer of the

14 Department of Energy or the Energy Programs Resolu15 tion Agency in the official capacity of such officer is party

16 to a suit with respect to a function of the officer, and

17 under this subtitle such function is transferred to any

18 other officer or office, then such suit shall be continued

19 with the other officer or the head of such other office, as

20 applicable, substituted or added as a party.

21 SEC. 4084. TRANSFER OF ASSETS.

22 Except as otherwise provided in this subtitle, so much

23 of the personnel, property, records, and unexpended bal24 ances of appropriations, allocations, and other funds em25 ployed, used, held, available, or to be made available in
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1 connection with a function transferred to an official by

2 this subtitle shall be available to the official at such time

3 or times as the Director of the Office of Management and

4 Budget directs for use in connection with the functions

5 transferred.

6 SEC. 4085. DELEGATION AND ASSIGNMENT.

7 Except as otherwise expressly prohibited by law or

8 otherwise provided in this subtitle, an official to whom

9 functions are transferred under this subtitle (including the

10 head of any office to which functions are transferred under

11 this subtitle) may delegate any of the functions so trans12 ferred to such officers and employees of the office of the

13 official as the official may designate, and may authorize

14 successive redelegations of such functions as may be nec15 essary or appropriate. No delegation of functions under

16 this section or under any other provision of this subtitle

17 shall relieve the official to whom a function is transferred

18 under this subtitle of responsibility for the administration

19 of the function.

20 SEC. 4086. AUTHORITY OF OFFICE OF MANAGEMENT AND

21 BUDGET WITH RESPECT TO FUNCTIONS

22 TRANSFERRED.

23 (a) DETERMINATIONS.—If necessary, the Office of

24 Management and Budget shall make any determination of

25 the functions that are transferred under this subtitle.
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1 (b) INCIDENTAL TRANSFERS.—The Director of the

2 Office of Management and Budget, at such time or times

3 as the Director shall provide, may make such determina4 tions as may be necessary with regard to the functions

5 transferred by this subtitle, and to make such additional

6 incidental dispositions of personnel, assets, liabilities,

7 grants, contracts, property, records, and unexpended bal8 ances of appropriations, authorizations, allocations, and

9 other funds held, used, arising from, available to, or to

10 be made available in connection with such functions, as

11 may be necessary to carry out the provisions of this sub12 title. The Director of the Office of Management and Budg13 et shall provide for the termination of the affairs of all

14 entities terminated by this subtitle and for such further

15 measures and dispositions as may be necessary to effec16 tuate the purposes of this subtitle.

17 SEC. 4087. PROPOSED CHANGES IN LAW.

18 Not later than one year after the date of the enact19 ment of this Act, the Director of the Office of Manage20 ment and Budget shall submit to the Congress a descrip21 tion of any changes in Federal law necessary to reflect

22 abolishments, transfers, terminations, and disposals under

23 this subtitle.
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1 SEC. 4088. CERTAIN VESTING OF FUNCTIONS CONSIDERED

2 TRANSFER.

3 For purposes of this chapter, the vesting of a func4 tion in a department or office pursuant to reestablishment

5 of an office shall be considered to be the transfer of the

6 function.

7 SEC. 4089. DEFINITIONS.

8 Except as otherwise provided in this subtitle, for pur9 poses of this subtitle the following definitions apply:

10 (1) ADMINISTRATOR.—The term ‘‘Adminis11 trator’’ means the Administrator of the Energy Pro12 grams Resolution Agency.

13 (2) AGENCY.—The term ‘‘Agency’’ means the

14 Energy Programs Resolution Agency.

15 (3) FUNCTION.—The term ‘‘function’’ includes

16 any duty, obligation, power, authority, responsibility,

17 right, privilege, activity, or program.

18 (4) OFFICE.—The term ‘‘office’’ includes any

19 office, administration, agency, institute, council,

20 unit, organizational entity, or component thereof.

21 (5) TERMINATION DATE.—The term ‘‘termi22 nation date’’ means the termination date under sec23 tion 4016(d).

24 (6) WIND-UP PERIOD.—The term ‘‘wind-up pe25 riod’’ means the period beginning on the effective
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1 date specified in section 4019(a) and ending on the

2 termination date.

3 Subtitle B—Reform Federal

4 Petroleum Reserve Programs

5 SEC. 4101. SALE OF NAVAL PETROLEUM RESERVES.

6 (a) FINDING.—Congress finds the following:

7 (1) The continued control and use of the naval

8 petroleum reserves (as defined in section 7420(2) of

9 title 10, United States Code) by the United States

10 is no longer necessary to promote the national secu11 rity interests of the United States.

12 (2) The sale of the naval petroleum reserves by

13 the United States would eliminate the costs cur14 rently incurred by the Secretary of Energy to oper15 ate the naval petroleum reserves and would be a

16 source of revenue to reduce the Federal budget defi17 cit.

18 (b) SALE REQUIRED.—The Secretary of Energy shall

19 sell all right, title, and interest of the United States in

20 and to naval petroleum reserves. The Secretary shall com21 plete the sale of the naval petroleum reserves not later

22 than the end of the ll-year period beginning on the date

23 of the enactment of this Act. The Secretary may extend

24 such time period if the Secretary notifies Congress before

25 the end of such period that, as a result of the condition
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1 specified in subsection (c)(1), the Secretary will be unable

2 to complete the sale of the naval petroleum reserves within

3 such time period.

4 (c) CONDITIONS ON SALE.—(1) Notwithstanding

5 subsection (b), the naval petroleum reserves may not be

6 sold for less than the fair market value, as determined

7 by the Secretary of Energy.

8 (2) The Secretary of Energy shall conduct sales

9 under subsection (b) using competitive procedures. All

10 sales shall be made to the highest responsible qualified

11 bidder or bidders, as determined by the Secretary. The

12 Secretary may establish such bidding terms and conditions

13 as the Secretary considers to be necessary and appro14 priate, including the establishment of sale units and mini15 mum bids.

16 (d) PURCHASER TO BE HELD HARMLESS.—No pur17 chaser under this section of any right, title, or interest

18 of the United States in the naval petroleum reserves shall

19 be liable for any claim of liability arising exclusively from

20 or during the ownership of the interest by the United

21 States. Such a claim of liability may be asserted only

22 against the United States to the extent and in the manner

23 provided by law.

24 (e) CONGRESSIONAL CONSULTATION.—(1) The Sec25 retary of Energy shall periodically notify Congress of the
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1 progress of the Secretary in selling the naval petroleum

2 reserves under this section.

3 (2) The Congressional consultation and Presidential

4 approval requirements of section 7431(a) of title 10,

5 United States Code, regarding each individual sale of a

6 portion of the naval petroleum reserves shall not apply to

7 sales under this section.

8 (f) PROCEEDS OF SALE.—(1) The Secretary of En9 ergy may use the proceeds resulting from sales of the

10 naval petroleum reserves under this section to satisfy any

11 contractual obligations of the United States directly relat12 ed to the sales, and to pay any liability of the Department

13 of Energy arising under any relevant Federal law concern14 ing the environment with respect to the interests sold.

15 (2) Funds remaining following operation of para16 graph (1) from the sales of the naval petroleum reserves

17 shall be deposited into the general fund of the Treasury

18 for the purpose of reducing the Federal budget deficit.

19 SEC. 4102. STRATEGIC PETROLEUM RESERVE ACQUISI20 TIONS.

21 Notwithstanding part B of title I of the Energy Pol22 icy and Conservation Act (42 U.S.C. 6231 et seq.), after

23 the date of enactment of this Act the Secretary of Energy

24 shall not obligate any funds for the acquisition of petro25 leum products for the Strategic Petroleum Reserve.
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1 Subtitle C—Reform Fossil Fuel and

2 Mineral Research Development

3 Programs

4 SEC. 4201. PRIVATIZATION OF UNITED STATES ENRICH5 MENT CORPORATION.

6 (a) REFERENCE.—Except as otherwise expressly pro7 vided, whenever in this section an amendment or repeal

8 is expressed in terms of an amendment to, or repeal of,

9 a section or other provision, the reference shall be consid10 ered to be made to a section or other provision of the

11 Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).

12 (b) PRODUCTION FACILITY.—Paragraph v. of section

13 11 (42 U.S.C. 2014 v.) is amended by striking ‘‘or the

14 construction and operation of a uranium enrichment pro15 duction facility using Atomic Vapor Laser Isotope Separa16 tion technology’’.

17 (c) DEFINITIONS.—Section 1201 (42 U.S.C. 2297)

18 is amended—

19 (1) in paragraph (4), by inserting before the pe20 riod the following: ‘‘and any successor corporation

21 established through privatization of the Corpora22 tion’’;

23 (2) by redesignating paragraphs (10) through

24 (13) as paragraphs (14) through (17), respectively,
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1 and by inserting after paragraph (9) the following

2 new paragraphs:

3 ‘‘(10) The term ‘low-level radioactive waste’ has

4 the meaning given such term in section 102(9) of

5 the Low-Level Radioactive Waste Policy Amend6 ments Act of 1985 (42 U.S.C. 2021b(9)).

7 ‘‘(11) The term ‘mixed waste’ has the meaning

8 given such term in section 1004(41) of the Solid

9 Waste Disposal Act (42 U.S.C. 6903(41)).

10 ‘‘(12) The term ‘privatization’ means the trans11 fer of ownership of the Corporation to private inves12 tors pursuant to chapter 25.

13 ‘‘(13) The term ‘privatization date’ means the

14 date on which 100 percent of ownership of the Cor15 poration has been transferred to private investors.’’;

16 (3) by inserting after paragraph (17) (as redes17 ignated) the following new paragraph:

18 ‘‘(18) The term ‘transition date’ means July 1,

19 1993.’’; and

20 (4) by redesignating the unredesignated para21 graph (14) as paragraph (19).

22 (d) EMPLOYEES OF THE CORPORATION.—

23 (1) PARAGRAPH (2).—Paragraphs (1) and (2)

24 of section 1305(e) (42 U.S.C. 2297b–4(e)(1)(2)) are

25 amended to read as follows:
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1 ‘‘(A) IN GENERAL.—It is the purpose of

2 this subsection to ensure that the privatization

3 of the Corporation shall not result in any ad4 verse effects on the pension benefits of employ5 ees at facilities that are operated, directly or

6 under contract, in the performance of the func7 tions vested in the Corporation.

8 ‘‘(B) APPLICABILITY OF EXISTING COL9 LECTIVE BARGAINING AGREEMENT.—The Cor10 poration shall abide by the terms of the collec11 tive bargaining agreement in effect on the pri12 vatization date at each individual facility.’’.

13 (2) PARAGRAPH (4).—Paragraph (4) of section

14 1305(e) (42 U.S.C. 2297b–4(e)(4)) is amended—

15 (A) by striking ‘‘AND DETAILEES’’ in the

16 heading;

17 (B) by striking the first sentence;

18 (C) in the second sentence, by inserting

19 ‘‘from other Federal employment’’ after ‘‘trans20 fer to the Corporation’’; and

21 (D) by striking the last sentence.

22 (e) MARKETING AND CONTRACTING AUTHORITY.—

23 (1) MARKETING AUTHORITY.—Section 1401(a)

24 (42 U.S.C. 2297c(a)) is amended effective on the
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1 privatization date (as defined in section 1201(13) of

2 the Atomic Energy Act of 1954)—

3 (A) by amending the subsection heading to

4 read ‘‘MARKETING AUTHORITY.—’’; and

5 (B) by striking the first sentence.

6 (2) TRANSFER OF CONTRACTS.—Section

7 1401(b) (42 U.S.C. 2297c(b)) is amended—

8 (A) in paragraph (2)(B), by adding at the

9 end the following: ‘‘The privatization of the

10 Corporation shall not affect the terms of, or the

11 rights or obligations of the parties to, any such

12 power purchase contract.’’; and

13 (B) by adding at the end the following:

14 ‘‘(3) EFFECT OF TRANSFER.—

15 ‘‘(A) As a result of the transfer pursuant

16 to paragraph (1), all rights, privileges, and ben17 efits under such contracts, agreements, and

18 leases, including the right to amend, modify, ex19 tend, revise, or terminate any of such contracts,

20 agreements, or leases were irrevocably assigned

21 to the Corporation for its exclusive benefit.

22 ‘‘(B) Notwithstanding the transfer pursu23 ant to paragraph (1), the United States shall

24 remain obligated to the parties to the contracts,

25 agreements, and leases transferred pursuant to
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1 paragraph (1) for the performance of the obli2 gations of the United States thereunder during

3 the term thereof. The Corporation shall reim4 burse the United States for any amount paid by

5 the United States in respect of such obligations

6 arising after the privatization date to the extent

7 such amount is a legal and valid obligation of

8 the Corporation then due.

9 ‘‘(C) After the privatization date, upon any

10 material amendment, modification, extension,

11 revision, replacement, or termination of any

12 contract, agreement, or lease transferred under

13 paragraph (1), the United States shall be re14 leased from further obligation under such con15 tract, agreement, or lease, except that such ac16 tion shall not release the United States from

17 obligations arising under such contract, agree18 ment, or lease prior to such time.’’.

19 (3) PRICING.—Section 1402 (42 U.S.C. 2297c–

20 1) is amended to read as follows:

21 ‘‘SEC. 1402. PRICING.

22 ‘‘The Corporation shall establish prices for its prod23 ucts, materials, and services provided to customers on a

24 basis that will allow it to attain the normal business objec25 tives of a profitmaking corporation.’’.
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1 (4) LEASING OF GASEOUS DIFFUSION FACILI2 TIES OF DEPARTMENT.—Effective on the privatiza3 tion date (as defined in section 1201(13) of the

4 Atomic Energy Act of 1954), section 1403 (42

5 U.S.C. 2297c–2) is amended by adding at the end

6 the following:

7 ‘‘(h) LOW-LEVEL RADIOACTIVE WASTE AND MIXED

8 WASTE.—

9 ‘‘(1) RESPONSIBILITY OF THE DEPARTMENT;

10 COSTS.—

11 ‘‘(A) With respect to low-level radioactive

12 waste and mixed waste generated by the Cor13 poration as a result of the operation of the fa14 cilities and related property leased by the Cor15 poration pursuant to subsection (a) or as a re16 sult of treatment of such wastes at a location

17 other than the facilities and related property

18 leased by the Corporation pursuant to sub19 section (a) the Department, at the request of

20 the Corporation, shall—

21 ‘‘(i) accept for treatment or disposal

22 of all such wastes for which treatment or

23 disposal technologies and capacities exist,

24 whether within the Department or else25 where; and
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1 ‘‘(ii) accept for storage (or ultimately

2 treatment or disposal) all such wastes for

3 which treatment and disposal technologies

4 or capacities do not exist, pending develop5 ment of such technologies or availability of

6 such capacities for such wastes.

7 ‘‘(B) All low-level wastes and mixed wastes

8 that the Department accepts for treatment,

9 storage, or disposal pursuant to subparagraph

10 (A) shall, for the purpose of any permits, li11 censes, authorizations, agreements, or orders

12 involving the Department and other Federal

13 agencies or State or local governments, be

14 deemed to be generated by the Department and

15 the Department shall handle such wastes in ac16 cordance with any such permits, licenses, au17 thorizations, agreements, or orders. The De18 partment shall obtain any additional permits, li19 censes, or authorizations necessary to handle

20 such wastes, shall amend any such agreements

21 or orders as necessary to handle such wastes,

22 and shall handle such wastes in accordance

23 therewith.

24 ‘‘(C) The Corporation shall reimburse the

25 Department for the treatment, storage, or dis-
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1 posal of low-level radioactive waste or mixed

2 waste pursuant to subparagraph (A) in an

3 amount equal to the Department’s costs but in

4 no event greater than an amount equal to that

5 which would be charged by commercial, State,

6 regional, or interstate compact entities for

7 treatment, storage, or disposal of such waste.

8 ‘‘(2) AGREEMENTS WITH OTHER PERSONS.—

9 The Corporation may also enter into agreements for

10 the treatment, storage, or disposal of low-level radio11 active waste and mixed waste generated by the Cor12 poration as a result of the operation of the facilities

13 and related property leased by the Corporation pur14 suant to subsection (a) with any person other than

15 the Department that is authorized by applicable laws

16 and regulations to treat, store, or dispose of such

17 wastes.’’.

18 (5) LIABILITIES.—

19 (A) Subsection (a) of section 1406 (42

20 U.S.C. 2297c–5(a)) is amended—

21 (i) by inserting ‘‘AND PRIVATIZA22 TION’’ after ‘‘TRANSITION’’ in the heading;

23 and

24 (ii) by adding at the end the follow25 ing: ‘‘As of the privatization date, all liabil-
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1 ities attributable to the operation of the

2 Corporation from the transition date to the

3 privatization date shall be direct liabilities

4 of the United States.’’.

5 (B) Subsection (b) of section 1406 (42

6 U.S.C. 2297c–5(b)) is amended—

7 (i) by inserting ‘‘AND PRIVATIZA8 TION’’ after ‘‘TRANSITION’’ in the heading;

9 and

10 (ii) by adding at the end the follow11 ing: ‘‘As of the privatization date, any

12 judgment entered against the Corporation

13 imposing liability arising out of the oper14 ation of the Corporation from the transi15 tion date to the privatization date shall be

16 considered a judgment against the United

17 States.’’.

18 (C) Subsection (d) of section 1406 (42

19 U.S.C. 2297c–5(d)) is amended—

20 (i) by inserting ‘‘AND PRIVATIZA21 TION’’ after ‘‘TRANSITION’’ in the heading;

22 and

23 (ii) by striking ‘‘the transition date’’

24 and inserting ‘‘the privatization date (or,
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1 in the event the privatization date does not

2 occur, the transition date)’’.

3 (6) TRANSFER OF URANIUM.—Title II (42

4 U.S.C. 2297 et seq.) is amended by redesignating

5 section 1408 as section 1409 and by inserting after

6 section 1407 the following:

7 ‘‘SEC. 1408. TRANSFER OF URANIUM.

8 ‘‘The Secretary may, before the privatization date,

9 transfer to the Corporation without charge raw uranium,

10 low-enriched uranium, and highly enriched uranium.’’.

11 (f) PRIVATIZATION OF THE CORPORATION.—

12 (1) ESTABLISHMENT OF PRIVATE CORPORA13 TION.—Chapter 25 (42 U.S.C. 2297d et seq.) is

14 amended by adding at the end the following new sec15 tion:

16 ‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.

17 ‘‘(a) ESTABLISHMENT.—

18 ‘‘(1) IN GENERAL.—In order to facilitate pri19 vatization, the Corporation may provide for the es20 tablishment of a private corporation organized under

21 the laws of any of the several States. Such corpora22 tion shall have among its purposes the following:

23 ‘‘(A) To help maintain a reliable and eco24 nomical domestic source of uranium enrichment

25 services.
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1 ‘‘(B) To undertake any and all activities as

2 provided in its corporate charter.

3 ‘‘(2) AUTHORITIES.—The corporation estab4 lished pursuant to paragraph (1) shall be authorized

5 to—

6 ‘‘(A) enrich uranium, provide for uranium

7 to be enriched by others, or acquire enriched

8 uranium (including low-enriched uranium de9 rived from highly enriched uranium);

10 ‘‘(B) conduct, or provide for conducting,

11 those research and development activities relat12 ed to uranium enrichment and related processes

13 and activities the corporation considers nec14 essary or advisable to maintain itself as a com15 mercial enterprise operating on a profitable and

16 efficient basis;

17 ‘‘(C) enter into transactions regarding ura18 nium, enriched uranium, or depleted uranium

19 with—

20 ‘‘(i) persons licensed under section 53,

21 63, 103, or 104 in accordance with the li22 censes held by those persons;

23 ‘‘(ii) persons in accordance with, and

24 within the period of, an agreement for co25 operation arranged under section 123; or
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1 ‘‘(iii) persons otherwise authorized by

2 law to enter into such transactions;

3 ‘‘(D) enter into contracts with persons li4 censed under section 53, 63, 103, or 104, for

5 as long as the corporation considers necessary

6 or desirable, to provide uranium or uranium en7 richment and related services;

8 ‘‘(E) enter into contracts to provide ura9 nium or uranium enrichment and related serv10 ices in accordance with, and within the period

11 of, an agreement for cooperation arranged

12 under section 123 or as otherwise authorized by

13 law; and

14 ‘‘(F) take any and all such other actions as

15 are permitted by the law of the jurisdiction of

16 incorporation of the corporation.

17 ‘‘(3) TRANSFER OF ASSETS.—For purposes of

18 implementing the privatization, the Corporation may

19 transfer some or all of its assets and obligations to

20 the corporation established pursuant to this section,

21 including—

22 ‘‘(A) all of the Corporation’s assets, includ23 ing all contracts, agreements, and leases, in24 cluding all uranium enrichment contracts and

25 power purchase contracts;
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1 ‘‘(B) all funds in accounts of the Corpora2 tion held by the Treasury or on deposit with

3 any bank or other financial institution;

4 ‘‘(C) all of the Corporation’s rights, duties,

5 and obligations, accruing subsequent to the pri6 vatization date, under the power purchase con7 tracts covered by section 1401(b)(2)(B); and

8 ‘‘(D) all of the Corporation’s rights, duties,

9 and obligations, accruing subsequent to the pri10 vatization date, under the lease agreement be11 tween the Department and the Corporation exe12 cuted by the Department and the Corporation

13 pursuant to section 1403.

14 ‘‘(4) MERGER OR CONSOLIDATION.—For pur15 poses of implementing the privatization, the Cor16 poration may merge or consolidate with the corpora17 tion established pursuant to subsection (a)(1) if such

18 action is contemplated by the plan for privatization

19 approved by the President under section 1502(b).

20 The Board shall have exclusive authority to approve

21 such merger or consolidation and to take all further

22 actions necessary to consummate such merger or

23 consolidation, and no action by or in respect of

24 shareholders shall be required. The merger or con25 solidation shall be effected in accordance with, and
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1 have the effects of a merger or consolidation under,

2 the laws of the jurisdiction of incorporation of the

3 surviving corporation, and all rights and benefits

4 provided under this title to the Corporation shall

5 apply to the surviving corporation as if it were the

6 Corporation.

7 ‘‘(5) TAX TREATMENT OF PRIVATIZATION.—

8 ‘‘(A) TRANSFER OF ASSETS OR MERGER.—

9 No income, gain, or loss shall be recognized by

10 any person by reason of the transfer of the Cor11 poration’s assets to, or the Corporation’s merg12 er with, the corporation established pursuant to

13 subsection (a)(1) in connection with the privat14 ization.

15 ‘‘(B) CANCELLATION OF DEBT AND COM16 MON STOCK.—No income, gain, or loss shall be

17 recognized by any person by reason of any can18 cellation of any obligation or common stock of

19 the Corporation in connection with the privat20 ization.

21 ‘‘(b) OSHA REQUIREMENTS.—For purposes of the

22 regulation of radiological and nonradiological hazards

23 under the Occupational Safety and Health Act of 1970,

24 the corporation established pursuant to subsection (a)(1)

25 shall be treated in the same manner as other employers
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1 licensed by the Nuclear Regulatory Commission. Any

2 interagency agreement entered into between the Nuclear

3 Regulatory Commission and the Occupational Safety and

4 Health Administration governing the scope of their respec5 tive regulatory authorities shall apply to the corporation

6 as if the corporation were a Nuclear Regulatory Commis7 sion licensee.

8 ‘‘(c) LEGAL STATUS OF PRIVATE CORPORATION.—

9 ‘‘(1) NOT FEDERAL AGENCY.—The corporation

10 established pursuant to subsection (a)(1) shall not

11 be an agency, instrumentality, or establishment of

12 the United States Government and shall not be a

13 Government corporation or Government-controlled

14 corporation.

15 ‘‘(2) NO RECOURSE AGAINST UNITED

16 STATES.—Obligations of the corporation established

17 pursuant to subsection (a)(1) shall not be obliga18 tions of, or guaranteed as to principal or interest by,

19 the Corporation or the United States, and the obli20 gations shall so plainly state.

21 ‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac22 tion under section 1491 of title 28, United States

23 Code, shall be allowable against the United States

24 based on the actions of the corporation established

25 pursuant to subsection (a)(1).
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1 ‘‘(d) BOARD OF DIRECTOR’S ELECTION AFTER PUB2 LIC OFFERING.—In the event that the privatization is im3 plemented by means of a public offering, an election of

4 the members of the board of directors of the Corporation

5 by the shareholders shall be conducted before the end of

6 the 1-year period beginning the date shares are first of7 fered to the public pursuant to such public offering.

8 ‘‘(e) ADEQUATE PROCEEDS.—The Secretary of En9 ergy shall not allow the privatization of the Corporation

10 unless before the sale date the Secretary determines that

11 the estimated sum of the gross proceeds from the sale of

12 the Corporation will be an adequate amount.’’.

13 (2) OWNERSHIP LIMITATIONS.—Chapter 25 (as

14 amended by paragraph (1)) is amended by adding at

15 the end the following new section:

16 ‘‘SEC. 1504. OWNERSHIP LIMITATIONS.

17 ‘‘(a) SECURITIES LIMITATION.—In the event that the

18 privatization is implemented by means of a public offering,

19 during a period of 3 years beginning on the privatization

20 date, no person, directly or indirectly, may acquire or hold

21 securities representing more than 10 percent of the total

22 votes of all outstanding voting securities of the Corpora23 tion.

24 ‘‘(b) APPLICATION.—Subsection (a) shall not apply—
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1 ‘‘(1) to any employee stock ownership plan of

2 the Corporation,

3 ‘‘(2) to underwriting syndicates holding shares

4 for resale, or

5 ‘‘(3) in the case of shares beneficially held for

6 others, to commercial banks, broker-dealers, clearing

7 corporations, or other nominees.

8 ‘‘(c) No director, officer, or employee of the Corpora9 tion may acquire any securities, or any right to acquire

10 securities, of the Corporation—

11 ‘‘(1) in the public offering of securities of the

12 Corporation in the implementation of the privatiza13 tion,

14 ‘‘(2) pursuant to any agreement, arrangement,

15 or understanding entered into before the privatiza16 tion date, or

17 ‘‘(3) before the election of directors of the Cor18 poration under section 1503(d) on any terms more

19 favorable than those offered to the general public.’’.

20 (3) EXEMPTION FROM LIABILITY.—Chapter 25

21 (as amended by paragraph (2)) is amended by add22 ing at the end the following new section:

23 ‘‘SEC. 1505. EXEMPTION FROM LIABILITY.

24 ‘‘(a) IN GENERAL.—No director, officer, employee, or

25 agent of the Corporation shall be liable, for money dam-
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1 ages or otherwise, to any party if, with respect to the sub2 ject matter of the action, suit, or proceeding, such person

3 was fulfilling a duty, in connection with any action taken

4 in connection with the privatization, which such person in

5 good faith reasonably believed to be required by law or

6 vested in such person.

7 ‘‘(b) EXCEPTION.—The privatization shall be subject

8 to the Securities Act of 1933 and the Securities Exchange

9 Act of 1934. The exemption set forth in subsection (a)

10 shall not apply to claims arising under such Acts or under

11 the Constitution or laws of any State, territory, or posses12 sion of the United States relating to transactions in secu13 rities, which claims are in connection with a public offer14 ing implementing the privatization.’’.

15 (4) RESOLUTION OF CERTAIN ISSUES.—Chap16 ter 25 (as amended by paragraph (3)) is amended

17 by adding at the end the following new section:

18 ‘‘SEC. 1506. RESOLUTION OF CERTAIN ISSUES.

19 ‘‘(a) CORPORATION ACTIONS.—Notwithstanding any

20 provision of any agreement to which the Corporation is

21 a party, the Corporation shall not be considered to be in

22 breach, default, or violation of any such agreement be23 cause of any provision of this chapter or any action the

24 Corporation is required to take under this chapter.
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1 ‘‘(b) RIGHT TO SUE WITHDRAWN.—The United

2 States hereby withdraws any stated or implied consent for

3 the United States, or any agent or officer of the United

4 States, to be sued by any person for any legal, equitable,

5 or other relief with respect to any claim arising out of,

6 or resulting from, acts or omissions under this chapter.’’.

7 (5) APPLICATION OF PRIVATIZATION PRO8 CEEDS.—Chapter 25 (as amended by paragraph (4))

9 is amended by adding at the end the following new

10 section:

11 ‘‘SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.

12 ‘‘The proceeds from the privatization shall be in13 cluded in the budget baseline required by the Balanced

14 Budget and Emergency Deficit Control Act of 1985 and

15 shall be counted as an offset to direct spending for pur16 poses of section 252 of such Act, notwithstanding section

17 257(e) of such Act.’’.

18 (6) CONFORMING AMENDMENT.—The table of

19 contents for chapter 25 is amended by inserting

20 after the item for section 1502 the following:

‘‘Sec. 1503. Establishment of private corporation.

‘‘Sec. 1504. Ownership limitations.

‘‘Sec. 1505. Exemption from liability.

‘‘Sec. 1506. Resolution of certain issues.

‘‘Sec. 1507. Application of privatization proceeds.’’.

21 (7) Section 193 (42 U.S.C. 2243) is amended

22 by adding at the end the following:
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1 ‘‘(f) LIMITATION.—If the privatization of the United

2 States Enrichment Corporation results in the Corporation

3 being—

4 ‘‘(1) owned, controlled, or dominated by a for5 eign corporation or a foreign government, or

6 ‘‘(2) otherwise inimical to the common defense

7 or security of the United States,

8 any license held by the Corporation under sections 53 and

9 63 shall be terminated.’’.

10 (8) PERIOD FOR CONGRESSIONAL REVIEW.—

11 Section 1502(d) (42 U.S.C. 2297d–1(d)) is amended

12 by striking ‘‘less than 60 days after notification of

13 the Congress’’ and inserting ‘‘less than 60 days after

14 the date of the report to Congress by the Comptrol15 ler General under subsection (c)’’.

16 (g) PERIODIC CERTIFICATION OF COMPLIANCE.—

17 Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is amended by

18 striking ‘‘ANNUAL APPLICATION FOR CERTIFICATE OF

19 COMPLIANCE.—The Corporation shall apply at least annu20 ally to the Nuclear Regulatory Commission for a certifi21 cate of compliance under paragraph (1).’’ and inserting

22 ‘‘PERIODIC APPLICATION FOR CERTIFICATE OF COMPLI23 ANCE.—The Corporation shall apply to the Nuclear Regu24 latory Commission for a certificate of compliance under
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1 paragraph (1) periodically, as determined by the Nuclear

2 Regulatory Commission, but not less than every 5 years.’’.

3 (h) LICENSING OF OTHER TECHNOLOGIES.—Sub4 section (a) of section 1702 (42 U.S.C. 2297f–1(a)) is

5 amended by striking ‘‘other than’’ and inserting ‘‘includ6 ing’’.

7 (i) CONFORMING AMENDMENTS.—

8 (1) REPEALS IN ATOMIC ENERGY ACT OF 1954

9 AS OF THE PRIVATIZATION DATE.—

10 (A) REPEALS.—As of the privatization

11 date (as defined in section 1201(13) of the

12 Atomic Energy Act of 1954), the following sec13 tions (as in effect on such privatization date) of

14 the Atomic Energy Act of 1954 are repealed:

15 (i) Section 1202.

16 (ii) Sections 1301 through 1304.

17 (iii) Sections 1306 through 1316.

18 (iv) Sections 1404 and 1405.

19 (v) Section 1601.

20 (vi) Sections 1603 through 1607.

21 (B) CONFORMING AMENDMENT.—The

22 table of contents of such Act is amended by re23 pealing the items referring to sections repealed

24 by paragraph (1).
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1 (2) STATUTORY MODIFICATIONS.—As of such

2 privatization date, the following shall take effect:

3 (A) For purposes of title I of the Atomic

4 Energy Act of 1954, all references in such Act

5 to the ‘‘United States Enrichment Corporation’’

6 shall be deemed to be references to the corpora7 tion established pursuant to section 1503 of the

8 Atomic Energy Act of 1954 (as added by sub9 section (f)(1)).

10 (B) Section 1018(1) of the Energy Policy

11 Act of 1992 (42 U.S.C. 2296b–7(1)) is amend12 ed by striking ‘‘the United States’’ and all that

13 follows through the period and inserting ‘‘the

14 corporation referred to in section 1201(4) of

15 the Atomic Energy Act of 1954.’’.

16 (C) Section 9101(3) of title 31, United

17 States Code, is amended by striking subpara18 graph (N), as added by section 902(b) of Public

19 Law 102–486.

20 (3) REVISION OF SECTION 1305.—As of such

21 privatization date, section 1305 of the Atomic En22 ergy Act of 1954 (42 U.S.C 2297b–4) is amended—

23 (A) by repealing subsections (a), (b), (c),

24 and (d), and

25 (B) in subsection (e)—
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1 (i) by striking the subsection designa2 tion and heading,

3 (ii) by redesignating paragraphs (1)

4 and (2) (as added by subsection (d)(1)) as

5 subsections (a) and (b) and by moving the

6 margins 2-ems to the left,

7 (iii) by striking paragraph (3), and

8 (iv) by redesignating paragraph (4)

9 (as amended by subsection (d)(2)) as sub10 section (c), and by moving the margins 2-

11 ems to the left.

12 SEC. 4202. RESEARCH AND DEVELOPMENT.

13 (a) FOSSIL FUEL RESEARCH AND DEVELOPMENT.—

14 There are authorized to be appropriated to the Secretary

15 of Energy for fossil fuel research and development—

16 (1) $420,483,300 for fiscal year 1996;

17 (2) $398,352,600 for fiscal year 1997;

18 (3) $376,221,900 for fiscal year 1998;

19 (4) $354,091,200 for fiscal year 1999; and

20 (5) $331,960,500 for fiscal year 2000.

21 (b) ENERGY CONSERVATION RESEARCH AND DEVEL22 OPMENT.—There are authorized to be appropriated to the

23 Secretary of Energy for energy conservation research and

24 development—

25 (1) $713,874,600 for fiscal year 1996;
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1 (2) $634,555,200 for fiscal year 1997;

2 (3) $555,235,800 for fiscal year 1998;

3 (4) $475,916.400 for fiscal year 1999; and

4 (5) $396,597,000 for fiscal year 2000.

5 (c) MAGNETIC FUSION RESEARCH AND DEVELOP6 MENT.—There are authorized to be appropriated to the

7 Secretary of Energy for magnetic fusion research and de8 velopment—

9 (1) $335,306,700 for fiscal year 1996;

10 (2) $298,050,400 for fiscal year 1997;

11 (3) $260,794,100 for fiscal year 1998;

12 (4) $000,000,000 for fiscal year 1999; and

13 (5) $186,281,500 for fiscal year 2000.

14 (d) SOLAR AND RENEWABLE ENERGY RESEARCH

15 AND DEVELOPMENT.—There are authorized to be appro16 priated to the Secretary of Energy for solar and renewable

17 energy research and development—

18 (1) $349,297,200 for fiscal year 1996;

19 (2) $310,486,400 for fiscal year 1997;

20 (3) $271,675,600 for fiscal year 1998;

21 (4) $232,864,800 for fiscal year 1999; and

22 (5) $194,054,000 for fiscal year 2000.

23 (e) NUCLEAR ENERGY RESEARCH AND DEVELOP24 MENT.—There are authorized to be appropriated to the
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1 Secretary of Energy for nuclear energy research and de2 velopment—

3 (1) $293,228,000 for fiscal year 1996;

4 (2) $293,228,000 for fiscal year 1997;

5 (3) $293,228,000 for fiscal year 1998;

6 (4) $293,228,000 for fiscal year 1999; and

7 (5) $293,228,000 for fiscal year 2000.

8 SEC. 4203. TERMINATION OF CLEAN COAL TECHNOLOGY

9 PROGRAM.

10 (a) IN GENERAL.—The United States shall not obli11 gate any funds for the Clean Coal Technology program.

12 (b) REPEAL.—

13 (1) IN GENERAL.—Except as provided in para14 graph (2), the matter under the heading ‘‘DEPART15 MENT OF ENERGY, CLEAN COAL TECHNOLOGY’’

16 in the Act entitled ‘‘An Act making appropriations

17 for the Department of the Interior and Related

18 Agencies for the fiscal year ending September 30,

19 1986, and for other purposes’’ enacted by section

20 101(d) of the Joint Resolution entitled ‘‘Joint Reso21 lution making further continuing appropriations for

22 the fiscal year 1986, and for other purposes’’ (Public

23 Law 99–190; 99 Stat. 1251) is repealed.

24 (2) EXCEPTION.—The authority provided in the

25 matter repealed by paragraph (1) of this subsection
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1 shall be preserved to the extent necessary to carry

2 out obligations of the United States with respect to

3 clean coal technology projects selected by the Sec4 retary of Energy pursuant to the fifth general re5 quest for proposals issued by the Secretary under

6 such section 101(d) (and pursuant to any such gen7 eral request issued before the fifth general request).

8 SEC. 4204. TERMINATION OF ATOMIC VAPOR ISOTOPE SEP9 ARATION PROGRAM.

10 No amount of funds provided for any fiscal year may

11 be obligated by the Secretary of Energy after the date of

12 the enactment of this Act for the atomic vapor laser iso13 tope separation program.

14 Subtitle D—Reform Energy

15 Conservation Programs

16 SEC. 4301. WEATHERIZATION.

17 (a) REPEAL.—Part A of title IV of the Energy Con18 servation and Production Act (42 U.S.C. 6861–6872), and

19 the items relating thereto in the table of contents of such

20 Act, are repealed.

21 (b) CONFORMING AMENDMENTS.—(1) Section

22 2605(b)(4) of the Low-Income Home Energy Assistance

23 Act of 1981 (42 U.S.C. 8624(b)(4)) is amended by strik24 ing ‘‘under the low-income weatherization assistance pro-
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1 gram under title IV of the Energy Conservation and Pro2 duction Act,’’.

3 (2) Section 504(c) of the Housing Act of 1949 (42

4 U.S.C. 1474(c)) is amended—

5 (A) in paragraph (3), by inserting ‘‘(as such

6 provision was in effect on January 1, 1995)’’ after

7 ‘‘Buildings Act of 1976’’; and

8 (B) in paragraph (4), by inserting ‘‘(as such

9 provisions were in effect on January 1, 1995)’’ after

10 ‘‘Buildings Act of 1976’’.

11 (3) Section 2(a)(2) of the National Housing Act (12

12 U.S.C. 1703(a)(2)) is amended by inserting ‘‘(as such pro13 vision was in effect on January 1, 1995)’’ after ‘‘Buildings

14 Act of 1976’’.

15 (4) Section 203(b) of the Older Americans Act of

16 1965 (42 U.S.C. 3013(b)) is amended by striking para17 graph (12) and redesignating the subsequent paragraphs

18 accordingly.

19 (5) Section 233 of the National Energy Conservation

20 Policy Act (42 U.S.C. 6873) is amended by striking

21 ‘‘weatherization programs conducted under part A of the

22 Energy Conservation in Existing Buildings Act of 1976,’’.

23 (6) Section 3803(c)(2)(C) of title 31, United States

24 Code, is amended—
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1 (A) by inserting ‘‘and’’ at the end of clause

2 (xiv);

3 (B) by striking ‘‘; and’’ at the end of clause

4 (xv) and inserting in lieu thereof a period; and

5 (C) by striking clause (xvi).

6 SEC. 4302. STATE ENERGY CONSERVATION PROGRAM.

7 (a) REPEAL.—Part D of title III of the Energy Policy

8 and Conservation Act (42 U.S.C. 6321–6326), and the

9 items relating thereto in the table of contents of such Act,

10 are repealed.

11 (b) CONFORMING AMENDMENTS.—(1) Section 509(i)

12 of the Housing and Urban Development Act of 1970 (12

13 U.S.C. 1701z–8(i)) is amended—

14 (A) in paragraph (2), by striking ‘‘pursuant to

15 section 365(e)(1) of the Energy Policy and Con16 servation Act’’; and

17 (B) in paragraph (3), by inserting ‘‘(as such

18 provision was in effect on January 1, 1995)’’ after

19 ‘‘Policy and Conservation Act’’.

20 (2) Section 912(f) of the Housing and Community

21 Development Act of 1992 (42 U.S.C. 5511a(f)) is amend22 ed by striking ‘‘State agencies responsible’’ and all that

23 follows through ‘‘any other’’ and inserting in lieu thereof

24 ‘‘any’’.
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1 SEC. 4303. INSTITUTIONAL CONSERVATION.

2 (a) REPEAL.—Parts G and H of the Energy Policy

3 and Conservation Act (42 U.S.C. 6371–6372i), and the

4 items relating thereto in the table of contents of such Act,

5 are repealed.

6 (b) CONFORMING AMENDMENT.—Title III of the Na7 tional Energy Conservation Policy Act, and the items re8 lating thereto in the table of contents of such Act, are

9 repealed.

10 TITLE V—ENVIRONMENT

11 Subtitle A—Public Land Use and

12 Purchase Reforms

13 SEC. 5001. MORATORIUM ON LAND ACQUISITION BY CER14 TAIN AGENCIES.

15 (a) IN GENERAL.—

16 (1) PURCHASE WITH APPROPRIATED FUNDS.—

17 During the 5-year period beginning on October 1,

18 1996—

19 (A) the Secretary of the Interior may not

20 obligate or expend any appropriated funds to

21 acquire lands or interests in lands which are to

22 be administered by the National Park Service

23 or by the United States Fish and Wildlife Serv24 ice;

25 (B) the Secretary of Agriculture may not

26 obligate or expend any appropriated funds to
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1 acquire lands or interests in lands which are to

2 be administered by the Forest Service; and

3 (C) no other Federal agency may obligate

4 or expend appropriated funds to acquire lands

5 or interests in lands for the purpose of transfer6 ring the lands or interests to the administrative

7 jurisdiction of the National Park Service, the

8 United States Fish and Wildlife Service, or the

9 Forest Service.

10 (2) EXCHANGE.—During the 5-year period re11 ferred to in paragraph (1), the Secretary of the Inte12 rior may not exchange lands or interests in lands ad13 ministered by or to be administered by the National

14 Park Service or the United States Fish and Wildlife

15 Service, and the Secretary of Agriculture may not

16 exchange lands or interests in lands administered by

17 or to be administered by the Forest Service, if the

18 exchange would result in budget outlays (as defined

19 in section 3 of the Congressional Budget and Im20 poundment Control Act of 1974 (2 U.S.C. 622)) by

21 the National Park Service, United States Fish and

22 Wildlife Service, or Forest Service, as the case may

23 be.

24 (b) EXCEPTION.—Subsection (a) shall not apply with

25 respect to the acquisition (by exchange or otherwise) of
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1 any lands or interests in lands if the President submits

2 written certification to the Congress that the lands or in3 terests, as the case may be, are vital to national security

4 interests of the United States.

5 (c) APPLICATION TO PREVIOUS AGREEMENTS.—Sub6 section (a) shall not apply with respect to any otherwise

7 binding agreement that is entered into before the date of

8 the enactment of this Act and that obligates the United

9 States to acquire lands or interests in lands by purchase

10 or exchange in whole or in part with appropriated funds.

11 SEC. 5002. PROHIBITION ON TIMBER SALES IN UNITS OF

12 THE NATIONAL FOREST SYSTEM IN WHICH

13 TIMBER SALE EXPENSES CONSISTENTLY EX14 CEED TIMBER SALE REVENUES.

15 (a) IN GENERAL.—The National Forest Management

16 Act of 1976 is amended by inserting after section 14 (16

17 U.S.C. 472a) the following new section:

18 ‘‘SEC. 14A. PROHIBITION ON BELOW-COST TIMBER SALE

19 PROGRAMS.

20 ‘‘(a) ANNUAL DETERMINATION OF REVENUES AND

21 COSTS OF TIMBER SALE PROGRAMS.—As soon as possible

22 after the end of each fiscal year, the Secretary of Agri23 culture shall determine for each unit of the National For24 est System the total revenues derived or to be derived by

25 the Federal Government, and the total costs incurred or
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1 to be incurred by the Federal Government, as a direct re2 sult of the timber sale program conducted in that unit dur3 ing that fiscal year. For purposes of determining revenues

4 and costs under this subsection, the Secretary shall con5 tinue to use the definitions of revenues and costs, and the

6 accounting practices used to measure such revenues and

7 costs, in effect for the Forest Service as of December 31,

8 1994.

9 ‘‘(b) TERMINATION OF CONSISTENTLY BELOW-COST

10 TIMBER SALE PROGRAMS.—If, for three consecutive fiscal

11 years in which timber sales are conducted in a unit of the

12 National Forest System, the Secretary determines pursu13 ant to subsection (a) that the total costs for the timber

14 sale program of that unit exceed the total revenues for

15 the program, the Secretary shall immediately terminate

16 the timber sale program for that unit and may not enter

17 into any contract for the sale of national forest materials

18 from that unit. Notwithstanding the termination of the

19 timber sale program for a unit of the National Forest Sys20 tem under this subsection, the Secretary may permit the

21 continued performance of a contract related to a specific

22 sale of national forest materials from that unit if the con23 tract was executed before the date of the termination.
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1 ‘‘(c) REINSTATEMENT OF TIMBER SALE PRO2 GRAM.—The Secretary may reinstate a timber sale pro3 gram terminated under subsection (b) if the Secretary—

4 ‘‘(1) develops a timber sale program for the

5 unit of the National Forest System involved that, in

6 the judgment of the Secretary, will produce revenues

7 that exceed costs for such program; and

8 ‘‘(2) notifies Congress of the reinstatement of

9 the timber sale program not later than 60 days be10 fore the date on which the program is to be rein11 stated.

12 ‘‘(d) EFFECT OF SUBSEQUENT DETERMINATION OF

13 BELOW-COST SALES.—If, for any of the three fiscal years

14 immediately following the reinstatement under subsection

15 (c) of a timber sale program for a unit of the National

16 Forest System, the Secretary determines pursuant to sub17 section (a) that the total costs for the program exceed the

18 total revenues for the program, the Secretary shall imme19 diately terminate the timber sale program of that unit of

20 the National Forest System. A timber sale program of a

21 unit of the National Forest System terminated under this

22 subsection may not be reinstated, and the Secretary shall

23 prohibit all further sales of national forest materials from

24 that unit. If a timber sale program successfully completes

25 this three-fiscal year period without being terminated, the
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1 Secretary shall apply the termination policy specified in

2 subsection (b) in evaluating the operation of the timber

3 sale program in subsequent fiscal years.’’.

4 (b) EFFECTIVE DATE.—Section 14A of the National

5 Forest Management Act of 1976, as added by subsection

6 (a), shall take effect on the date of the enactment of this

7 Act, except that the suspension of the timber sale program

8 of a unit of the National Forest System under subsection

9 (b) of such section may not begin before October 1, 1995.

10 As soon as possible after the date of the enactment of this

11 Act, the Secretary of Agriculture shall make the deter12 mination required by subsection (a) of such section with

13 respect to fiscal years 1992, 1993, and 1994.

14 SEC. 5003. PERMANENT LIMITATIONS ON AMOUNTS AU15 THORIZED TO BE APPROPRIATED FOR THE

16 NATIONAL FOREST SYSTEM AND RELATED

17 AGRICULTURE CONSERVATION AND FOR18 ESTRY PROGRAMS.

19 (a) NATIONAL FOREST SYSTEM.—Section 11 of the

20 Forest and Rangeland Renewable Resources Planning Act

21 of 1974 (16 U.S.C. 1609) is amended by adding at the

22 end the following new subsection:

23 ‘‘(c) LIMITATION ON NATIONAL FOREST SYSTEM

24 FUNDING.—Notwithstanding any other authorization of

25 appropriations to the contrary, the total amount author-
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1 ized to be appropriated for a fiscal year for necessary ex2 penses of the Forest Service for management, protection,

3 improvement, and utilization of the National Forest Sys4 tem and for all other purposes specified under the heading

5 ‘NATIONAL FOREST SYSTEM’ in title II of the Department

6 of the Interior and Related Agencies Appropriations Act,

7 1995 (Public Law 103–332; 108 Stat. 2520), shall not

8 exceed $1,304,891,000.’’.

9 (b) STATE AND PRIVATE FORESTRY.—The Forest

10 Stewardship Act of 1990 (title XII of Public Law 101–

11 624; 104 Stat. 3521) is amended by adding after section

12 1201 the following new section:

13 ‘‘SEC. 1202. LIMITATION ON FUNDING FOR STATE AND PRI14 VATE FORESTRY.

15 ‘‘Notwithstanding any other authorization of appro16 priations to the contrary, the total amount authorized to

17 be appropriated for a fiscal year for necessary expenses

18 of State and private forestry activities to cooperate with,

19 and provide technical and financial assistance to, States,

20 Territories, possessions, and others and for forest pest

21 management activities, cooperative forestry and education

22 and land conservation activities shall not exceed

23 $161,264,000.’’.

24 (c) RESOURCE CONSERVATION AND DEVELOPMENT

25 FUNDING.—
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1 (1) FUNDING LIMITATION.—Section 6 of the

2 Soil Conservation and Domestic Allotment Act (16

3 U.S.C. 590f) is amended by striking the section

4 heading and the first undesignated paragraph and

5 inserting the following:

6 ‘‘SEC. 6. LIMITATION ON RESOURCE CONSERVATION AND

7 DEVELOPMENT FUNDING.

8 ‘‘Notwithstanding any other authorization of appro9 priations to the contrary, the total amount authorized to

10 be appropriated for a fiscal year for necessary expenses

11 in planning and carrying out projects for resource con12 servation and development and for sound land use pursu13 ant to the first section and sections 2 and 3 of this Act

14 (16 U.S.C. 590a–590c), section 32(e) of the Bankhead15 Jones Farm Tenant Act (7 U.S.C. 1011(e), and subtitle

16 H of title XV of the Agriculture and Food Act of 1981

17 (16 U.S.C. 3451–3461) shall not exceed $28,900,000, ex18 cept that not more than $15,000,000 may be appropriated

19 for loans in any fiscal year under such subtitle. Such

20 amounts shall remain available until expended.’’.

21 (2) CONFORMING AMENDMENTS.—(A) Section

22 34 of the Bankhead-Jones Farm Tenant Act (7

23 U.S.C. 1013) is amended by adding at the end the

24 following new sentence: ‘‘For the authorization of

25 appropriations to carry out section 32(e), see section
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1 6 of the Soil Conservation and Domestic Allotment

2 Act (16 U.S.C. 590f).’’.

3 (B) Section 1538 of the Agriculture and Food

4 Act of 1981 (16 U.S.C. 3461) is amended to read

5 as follows:

6 ‘‘SEC. 1538. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘For the authorization of appropriations to carry out

8 this subtitle, see section 6 of the Soil Conservation and

9 Domestic Allotment Act (16 U.S.C. 590f).’’.

10 (d) AGRICULTURAL CONSERVATION PROGRAM.—

11 (1) FUNDING LIMITATION.—Section 15 of the

12 Soil Conservation and Domestic Allotment Act (16

13 U.S.C. 590o) is amended by striking the first sen14 tence and inserting the following:

15 ‘‘(a) LIMITATION ON AGRICULTURAL CONSERVATION

16 PROGRAM FUNDING.—Notwithstanding any other author17 ization of appropriations to the contrary, the total amount

18 authorized to be appropriated for a fiscal year for nec19 essary expenses to carry into effect the agricultural con20 servation program authorized in sections 7 through 14,

21 section 16 (other than subsection (b)), and section 17 of

22 this Act (16 U.S.C. 590g–590n, 590p, and 590q) and title

23 X of the Agricultural Act of 1970, other than section 1005

24 (16 U.S.C. 1501–1504, 1506–1510), shall not exceed

25 $100,000,000.’’.
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1 (2) CONFORMING AMENDMENTS.—(A) Such

2 section is further amended by inserting ‘‘(b) DIS3 TRIBUTION OF FUNDS.—’’ before ‘‘Notwithstanding

4 the foregoing’’.

5 (B) Section 1010 of the Agricultural Act of

6 1970 (16 U.S.C. 1510) is amended to read as fol7 lows:

8 ‘‘SEC. 1010. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘For the authorization of appropriations to carry out

10 this title, other than section 1005, see section 15(a) of

11 the Soil Conservation and Domestic Allotment Act (16

12 U.S.C. 590o(a)).’’.

13 (e) GREAT PLAINS CONSERVATION PROGRAM.—Sec14 tion 16(b)(7) of the Soil Conservation and Domestic Allot15 ment Act (16 U.S.C. 590p(b)(7)) is amended by striking

16 ‘‘such sums as may be necessary’’ and inserting

17 ‘‘$11,000,000 each fiscal year’’.

18 (f) FORESTRY INCENTIVES PROGRAM.—Section 4(j)

19 of the Cooperative Forestry Assistance Act of 1978 (16

20 U.S.C. 2103(j)) is amended by striking ‘‘such sums as

21 may be needed to implement this section, including funds

22 necessary for’’ and inserting ‘‘$6,625,000 to implement

23 this section and cover the costs of’’.
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1 SEC. 5004. HETCH HETCHY.

2 In accordance with the discretionary authority pro3 vided in section 7 of the Act of December 19, 1913 (38

4 Stat. 242, 245) commonly known as the ‘‘Raker Act’’, the

5 annual amounts to be paid to the United States under

6 that section shall be increased to the amount determined

7 by the Secretary of the Interior to be equal to the fair

8 market value of the electric power generated within the

9 area described in such Act.

10 SEC. 5005. MINERAL LEASING OF LANDS WITHIN ARCTIC

11 NATIONAL WILDLIFE REFUGE.

12 (a) REPEAL OF LEASING PROHIBITION.—(1) The

13 heading for section 1003 of the Alaska National Interest

14 Conservation Act (16 U.S.C. 3143) is amended to read

15 as follows:

16 ‘‘SEC. 1003. MINERAL LEASING OF LANDS WITHIN ARCTIC

17 NATIONAL WILDLIFE REFUGE.’’.

18 (2) Such section 1003 is further amended by adding

19 the following at the end thereof: ‘‘The preceding sentence

20 shall not apply to such area or areas within the refuge,

21 the aggregate acreage of which does not exceed one and

22 one-half million acres, as the Secretary of the Interior may

23 designate. Notwithstanding any other provision of law, all

24 lands owned by the United States and located within such

25 designated area or areas shall be available for mineral

26 leasing under the Mineral Leasing Act.’’.
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1 (b) DEPOSIT OF LEASING REVENUES IN TREAS2 URY.—Section 35 of the Mineral Leasing Act is amended

3 by adding the following at the end thereof: ‘‘The preceding

4 provisions of this section shall not apply to lands within

5 the Arctic National Wildlife Refuge, and 100 percent of

6 all monies received from sales, bonuses, royalties from any

7 mineral leasing activities carried out with respect to such

8 lands shall be deposited in the Treasury as miscellaneous

9 receipts.’’.

10 SEC. 5006. NATIONAL PARK SERVICE USER FEES AND EN11 TRANCE FEES.

12 (a) DEFINITIONS.—As used in this section:

13 (1) The term ‘‘park’’ means a unit of the Na14 tional Park System.

15 (2) The term ‘‘Secretary’’ means the Secretary

16 of the Interior.

17 (b) FEES.—

18 (1) ADMISSION FEES.—

19 (A) IN GENERAL.—The Secretary shall es20 tablish reasonable admission fees to be charged

21 at units of the National Park System where the

22 Secretary determines that such fees are appro23 priate and feasible.

24 (B) ANNUAL PASSES.—For admission or

25 entrance into any unit of the National Park
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1 System designated by the Secretary pursuant to

2 this section, or into several specific units lo3 cated in a particular geographic area, or for en4 trance to all units where an admission fee is

5 charged, the Secretary is authorized to make

6 available annual admission permits for reason7 able fees to be determined by the Secretary.

8 (C) SINGLE VISITS.—The Secretary shall

9 establish reasonable admission fees for a single

10 visit at any unit of the National Park System

11 designated by the Secretary pursuant to this

12 section for persons who choose not to purchase

13 an annual pass.

14 (2) RECREATION USE FEES.—The Secretary

15 shall establish reasonable fees for specialized outdoor

16 recreation sites, facilities, equipment, or services

17 that are provided or furnished at Federal expense.

18 (3) SPECIAL PARK USES.—The Secretary shall

19 establish reasonable fees for uses of park units that

20 require special arrangements including permits. The

21 fees shall cover all costs of providing necessary serv22 ices associated with special uses and shall be cred23 ited to the appropriation current at that time.

24 (4) RETENTION OF FEES.—(A) Except as pro25 vided below, fees collected pursuant to paragraphs
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1 (1) and (2) of this subsection shall be deposited in

2 the special fund account established in Section 4 of

3 the Land and Water Conservation Fund Act of 1965

4 (16 U.S.C. 460l–6a(i)(4)).

5 (B) Notwithstanding any other provision of law,

6 beginning in fiscal year 1996 and thereafter, an

7 amount equal to 15 percent of the total fees col8 lected in the immediate preceding fiscal year pursu9 ant to paragraphs (1) and (2) shall be deducted

10 from the current year collections and shall be depos11 ited into a special fund established in the Treasury

12 of the United States titled ‘‘Fee Collection Sup13 port—National Park System’’ and shall be available

14 to the Secretary without further appropriation to

15 cover the costs of collection of the fees, to remain

16 available until expended.

17 (5) Notwithstanding any other provision of law,

18 beginning in fiscal year 1998 and thereafter, 50 per19 cent of the difference in additional receipts collected

20 during the immediate preceding fiscal year as com21 pared to total receipts collected in fiscal year 1993

22 shall be deducted from the current year collections

23 and shall be covered into a special fund established

24 in the Treasury of the United States titled ‘‘Na25 tional Park Renewal Fund’’, and shall be available
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1 to the Secretary without further appropriation for

2 infrastructure needs at parks, including but not lim3 ited to facility refurbishment, repair and replace4 ment, resource protection, interpretive/educational

5 media (exhibits), and other infrastructure projects

6 beneficial to park resources, to remain available

7 until expended.

8 (6) In fiscal year 1997 only, fees authorized to

9 be collected pursuant to paragraphs (1) and (2) may

10 be collected only to the extent provided in advance

11 in appropriations acts and shall be credited to the

12 appropriate special fund accounts described in this

13 section. In addition, said fees shall be available for

14 the purposes of this section only to the extent pro15 vided in advance in appropriations acts and are au16 thorized to be appropriated to remain available until

17 expended. In fiscal year 1998 and thereafter, fees

18 collected as authorized to be collected pursuant to

19 paragraphs (1) and (2) may be collected as author20 ized by this section and shall be available as pro21 vided in this section without further provision in ap22 propriations Acts.

23 (c) USE OF FEES.—The Secretary shall develop pro24 cedures for the use of these receipts that ensure account25 ability and demonstrated results consistent with the pur-
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1 poses of this section. The Secretary shall report annually

2 to Congress on the expenditure of funds from fees col3 lected, beginning after the first full fiscal year following

4 enactment of this section.

5 (d) DISCOUNTS.—In establishing the fees authorized

6 in this section, the Secretary shall establish appropriate

7 discounts for educational groups, persons sixty-two years

8 of age older, or persons who are blind or permanently dis9 abled. The Secretary may also establish criteria when the

10 fees may be waived for these groups or individuals.

11 (e) CRITERIA.—All fees established pursuant to this

12 section shall be fair and equitable, taking into consider13 ation the direct and indirect cost to the Government, the

14 benefits to the recipient, the public policy or interest

15 served, the comparable fees charged by non-Federal public

16 and private agencies, the economic and administrative fea17 sibility of fee collection and other pertinent factors. The

18 Secretary shall from time to time review the fees for con19 sistency with the provisions of this subsection and provide

20 timely public notice of any proposed changes in the fees.

21 (f) DONATIONS.—

22 (1) REQUESTS FOR DONATIONS.—In addition to

23 other authorities the Secretary may have to accept

24 the donation of lands, buildings, other property,

25 services, and moneys for the purposes of the Na-
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1 tional Park System, the Secretary is authorized to

2 solicit donations of money, property, and services

3 from individuals, corporations, foundations and

4 other potential donors who the Secretary believes

5 would wish to make such donations as an expression

6 of support for the national parks. Such donations

7 may be accepted and used for any authorized pur8 pose or program of the National Park Service, and

9 donations of money shall remain available for ex10 penditure without fiscal year limitation. Any employ11 ees of the Department to whom this authority is del12 egated shall be set forth in regulations issued by the

13 Secretary pursuant to paragraph (4).

14 (2) EMPLOYEE PARTICIPATION.—Employees of

15 the National Park Service may solicit donations only

16 if the request is incidental to or in support of, and

17 does not interfere with their primary duty of protect18 ing and administering the parks or administering

19 authorized programs, and only for the purpose of

20 providing a level of resource protection, visitor facili21 ties, or services for health and safety projects, recur22 ring maintenance activities, or for other routine ac23 tivities normally funded through annual agency ap24 propriations. Such requests must be in accordance

25 with guidelines issued pursuant to paragraph (d).
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1 (3) PROHIBITIONS.—(A) A donation may not

2 be accepted in exchange for a commitment to the

3 donor on the part of the National Park Service or

4 which attaches conditions inconsistent with applica5 ble laws and regulations or that is conditioned upon

6 or will require the expenditure of appropriated funds

7 that are not available to the Department, or which

8 compromises a criminal or civil position of the

9 United States or any of its departments or agencies

10 or the administrative authority of any agency of the

11 United States.

12 (B) In utilizing the authorities contained in this

13 section employees of the National Park Service shall

14 not directly conduct or execute major fund raising

15 campaigns, but may cooperate with others whom the

16 Secretary may designate to conduct such campaigns

17 on behalf of the National Park Service.

18 (4) REGULATIONS AND GUIDANCE.—The Sec19 retary shall issue regulations setting forth those po20 sitions to which he has delegated his authority under

21 paragraph (1) and the categories of employees of the

22 National Park Service that are authorized to request

23 donations pursuant to paragraph (2). Such regula24 tions shall also set forth any limitations on the types
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1 of donations that will be requested or accepted as

2 well as the sources of those donations.

3 (5) GUIDELINES.—The Secretary shall publish

4 guidelines which set forth the criteria to be used in

5 determining whether the solicitation or acceptance of

6 contributions of lands, buildings, other property,

7 services, moneys and other gifts or donations au8 thorized by this section would reflect unfavorably

9 upon the ability of the Department of the Interior

10 or any employee to carry out its responsibilities or

11 official duties in a fair and objective manner, or

12 would compromise the integrity or the appearance of

13 the integrity of its programs or any official involved

14 in those programs. The Secretary shall also issue

15 written guidance on the extent of the cooperation

16 that may be provided by National Park Service em17 ployees in any major fund raising campaign which

18 the Secretary has designated others to conduct pur19 suant to paragraph (3)(B).

20 (g) CHALLENGE COST-SHARE AGREEMENTS.—

21 (1) AGREEMENTS.—The Secretary is authorized

22 to negotiate and enter into challenge cost-share

23 agreements with cooperators. For purposes of this

24 section, the term—
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1 (A) ‘‘challenge cost-share agreement’’

2 means any agreement entered into between the

3 Secretary and any cooperator for the purpose of

4 sharing costs or services in carrying out author5 ized functions and responsibilities of the Sec6 retary with respect to the National Park Sys7 tem; and

8 (B) ‘‘cooperator’’ means any State or local

9 government, public or private agency, organiza10 tion, institution, corporation, individual, or

11 other entity.

12 (2) USE OF FEDERAL FUNDS.—In carrying out

13 challenge cost-share agreements, the Secretary is au14 thorized, subject to appropriation, to provide the

15 Federal funding share from any funds available to

16 the National Park Service.

17 (h) COST RECOVERY FOR DAMAGE TO PARK RE18 SOURCES.—Any funds payable to the United States as res19 titution on account of damage to park resources or prop20 erty shall be paid to the Secretary. Any such funds, and

21 any other funds received by the Secretary as a result of

22 forfeiture, compromise, or settlement on account of dam23 age to park resources or property shall be available with24 out appropriation and may be expended by the Secretary

25 without regard to fiscal year limitation to improve, pro-
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1 tect, or rehabilitate any park resources or property which

2 have been damaged by the action of a permittee or any

3 unauthorized person.

4 (i) CONSISTENCY WITH OTHER LAWS.—

5 (1) Except as provided in subsection (2), to the

6 extent that the provisions of this section are incon7 sistent with section 4 of the Land and Water Con8 servation Act of 1965 as amended (16 U.S.C. 460l–

9 6a) or any other provision of law, including any pro10 vision that prohibits or limits the charging of a rea11 sonable recreation or other fee, the provisions of this

12 section shall prevail.

13 (2) The following sections of the Land and

14 Water Conservation Act of 1965 as amended (16

15 U.S.C. 460l–6a) will apply to this section:

16 (A) RULES AND REGULATIONS; ESTAB17 LISHMENT; ENFORCEMENT POWERS; PENALTY

18 FOR VIOLATIONS.—In accordance with the pro19 visions of this section, the Secretary may pre20 scribe rules and regulations for areas under his

21 or her administration for the collection of any

22 fee established pursuant to this section. Persons

23 authorized to enforce any such rules or regula24 tions issued under this subsection may, within

25 areas under the administration or authority of
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1 the Secretary and with or, if the offense is com2 mitted in his presence, without a warrant, ar3 rest any person who violates such rules and reg4 ulations. Any person so arrested may be tried

5 and sentenced by the United States magistrate

6 judge specifically designated for that purpose

7 by the court by which he was appointed, in the

8 same manner and subject to the same condi9 tions as provided in subsection (b), (c), (d), and

10 (e) of section 3401 of title 18. Any violations of

11 the rules and regulations issued under this sub12 section shall be punishable by a fine of not

13 more than $1,000.

14 (B) CRITERIA, POSTING AND UNIFORMITY

15 OF FEES.—Clear notice that a fee has been es16 tablished pursuant to this section shall be

17 prominently posted at each area and at appro18 priate locations therein and shall be included in

19 publications distributed at such areas.

20 (C) CONTRACTS WITH PUBLIC OR PRIVATE

21 ENTITIES FOR VISITOR RESERVATION SERV22 ICES.—The Secretary, under such terms and

23 conditions as he deems appropriate, may con24 tract with any public or private entity to pro25 vide visitor reservation services. Any such con-
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1 tract may provide that the contractor shall be

2 permitted to deduct a commission to be fixed by

3 the agency head from the amount charged the

4 public for providing such services and to remit

5 the net proceeds therefrom to the contracting

6 agency.

7 (D) FEDERAL AND STATE LAWS UNAF8 FECTED.—Nothing in this section shall author9 ize Federal hunting or fishing licenses or fees

10 or charges for commercial or other activities not

11 related to recreation, nor shall it affect any

12 rights or authority of the States with respect to

13 fish and wildlife, nor shall it repeal or modify

14 any provision of law that permits States or po15 litical subdivisions to share in the revenues

16 from Federal lands or any provision of law that

17 provides that any fees or charges collected at

18 particular Federal areas shall be used for or

19 credited to specific purposes or special funds as

20 authorized by that provision of law.

21 (E) SELLING OF PERMITS AND COLLEC22 TION OF FEES BY VOLUNTEERS AT DES23 IGNATED AREAS; COLLECTING AGENCY DUTIES;

24 SURETY BONDS; SELLING OF ANNUAL ADMIS25 SION PERMITS BY PUBLIC AND PRIVATE ENTI-
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1 TIES UNDER ARRANGEMENTS WITH COLLECT2 ING AGENCY HEAD.—When authorized by the

3 Secretary, volunteers at designated areas may

4 sell permits and collect fees authorized or estab5 lished pursuant to this section. The Secretary

6 shall ensure that such volunteers have adequate

7 training regarding—

8 (i) the sale of permits and the collec9 tion of fees,

10 (ii) the purposes and resources of the

11 areas in which they are assigned, and

12 (iii) the provision of assistance and in13 formation to visitors to the designated

14 area.

15 The Secretary shall require a surety bond for

16 any such volunteer performing services under

17 this subsection. Funds available to the collect18 ing agency may be used to cover the cost of any

19 such surety bond. The head of the collecting

20 agency may enter into arrangements with quali21 fied public or private entities pursuant to which

22 such entities may well (without cost to the

23 United States) annual admission permits (in24 cluding Golden Eagle Passports) at any appro25 priate location.
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1 Subtitle B—Environmental Con2 servation, Cleanup, and Re3 search Reforms

4 SEC. 5101. PREFERENCE FOR INTERIM MEASURES IN

5 SUPERFUND RESPONSE ACTIONS.

6 (a) AMENDMENT OF CERCLA.—Section 121(a) of

7 the Comprehensive Environmental Response, Compensa8 tion, and Liability Act of 1980 (42 U.S.C. 9621(a)) is

9 amended by adding at the end the following: ‘‘Notwith10 standing any other provision of this Act, in selecting ap11 propriate remedial actions in any record of decision issued

12 on or after October 1, 1995, the President shall give a

13 preference to the use of institutional controls (such as

14 deed and access restrictions, monitoring, and provision of

15 alternate water supplies), containment methods (including

16 caps, slurry walls, and surface water diversion), and other

17 interim measures, rather than permanent treatment tech18 nologies, if such measures are sufficient to assure the pro19 tection of human health and the environment.’’.

20 (b) CLEANUP STANDARDS.—Section 121(d)(2) of the

21 Comprehensive Environmental Response, Compensation,

22 and Liability Act of 1980 (42 U.S.C. 9621(d)(2)) shall

23 not apply to any remedial action described in the amend24 ment made by subsection (a).
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—(1) Sec2 tion 517(b) of the Superfund Amendments and Reauthor3 ization Act of 1986 is amended—

4 (A) by striking the period at the end of para5 graph (9) and inserting in lieu thereof a comma; and

6 (B) by adding after paragraph (9) the following

7 new paragraphs:

8 ‘‘(10) 1996, $1,065,536,000,

9 ‘‘(11) 1997, $1,100,198,000,

10 ‘‘(12) 1998, $1,254,824,000, and

11 ‘‘(13) 1999, $1,321,018,000,’’.

12 (2) Section 9507(c) of the Internal Revenue Code of

13 1986 is amended by adding the following new paragraph

14 at the end thereof:

15 ‘‘(3) LIMITATION ON APPROPRIATIONS FROM

16 FUND.—For fiscal years 1996, 1997, 1998, and

17 1999, the total of all amounts authorized to be ap18 propriated from the Superfund shall not exceed the

19 amounts specified in paragraphs (10) through (13)

20 of the Superfund Amendments and Reauthorization

21 Act of 1986.’’.

22 (d) REPORT REQUIREMENT.—(1) The President

23 shall submit to Congress a report, during each of the 5

24 years listed in paragraph (2), on the use of measures

25 under the last sentence of section 121(a) of the Com-
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1 prehensive Environmental Response, Compensation, and

2 Liability Act of 1980 (42 U.S.C. 9621), as required by

3 the amendment made by subsection (a). The report shall

4 cover the preceding fiscal year and shall include the esti5 mated savings resulting from the use of such measures

6 in comparison to using permanent treatment technologies.

7 (2) The President shall submit the report required

8 by paragraph (1) by December 1 of 1996, 1997, 1998,

9 1999, and 2000.

10 SEC. 5102. ELIMINATION OF THE CONSERVATION RESERVE

11 PROGRAM.

12 (a) IN GENERAL.—Subchapter B of chapter 1 of sub13 title D of title XII of the Food Security Act of 1985 (16

14 U.S.C. 3831–3836) is hereby repealed.

15 (b) CONFORMING AMENDMENTS.—

16 (1) Section 1201(a) of such Act (16 U.S.C.

17 3801(a)) is amended by striking paragraph (3).

18 (2) Sections 1211(3) and 1221(a)(3) of such

19 Act (16 U.S.C. 3811(3) and 3821(a)(3)) are each

20 amended by striking subparagraph (C) and by redes21 ignating subparagraphs (D), (E), and (F) as sub22 paragraphs (C), (D), and (E), respectively.

23 (3) Section 1230 of such Act (16 U.S.C. 3830)

24 is amended—
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1 (A) in subsection (a), by striking ‘‘highly’’

2 and all that follows through ‘‘contamination),

3 and’’;

4 (B) in subsection (b), by striking ‘‘sub5 chapters B and C’’ and inserting ‘‘subchapter

6 C’’; and

7 (C) in subsection (c)—

8 (i) by striking ‘‘the conservation re9 serve program and’’; and

10 (ii) by striking ‘‘subchapters B and C,

11 respectively’’ and inserting ‘‘subchapter

12 C’’.

13 (4) Section 1237 of such Act (16 U.S.C. 3837)

14 is amended by striking subsection (f).

15 (5) Section 1239(b) of such Act (16 U.S.C.

16 3839(b)) is amended by striking paragraph (3).

17 (6) Section 1247 of such Act (16 U.S.C. 3847)

18 is amended—

19 (A) by striking ‘‘(a) IN GENERAL.—’’; and

20 (B) by striking subsection (b).

21 (7) Section 1305 of the Omnibus Budget Rec22 onciliation Act of 1987 (Public Law 100–203; 101

23 Stat. 1330–18) is amended by striking subsection

24 (d).
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1 (8) Section 10 of the Farm Disaster Assistance

2 Act of 1987 (Public Law 100–45; 101 Stat. 323) is

3 hereby repealed.

4 (c) NO EFFECT ON OUTSTANDING CONTRACTS.—

5 The repeal and amendments made by this section shall

6 not be construed to affect the terms of any contract en7 tered into under subchapter B of chapter 1 of subtitle D

8 of title XII of the Food Security Act of 1985 before the

9 effective date of this Act.

10 SEC. 5103. ELIMINATION OF FUNDING FOR STATE WATER

11 POLLUTION CONTROL REVOLVING FUNDS.

12 No funds may be appropriated to carry out title VI

13 of the Federal Water Pollution Control Act for fiscal years

14 beginning after September 30, 1995.

15 SEC. 5104. ELIMINATION OF FUNDING FOR WATERSHED

16 AND FLOOD PREVENTION OPERATIONS.

17 For fiscal years beginning after September 30, 1995,

18 no funds may be appropriated for any of the following pur19 poses:

20 (1) Watershed operations and loan services au21 thorized by section 13 of the Flood Control Act ap22 proved December 22, 1944 (58 Stat. 905–906).

23 (2) Emergency watershed protection operations

24 conducted by the Secretary of Agriculture.
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1 (3) Loan services authorized by section 8 of the

2 Watershed Protection and Flood Prevention Act (16

3 U.S.C. 1006a).

4 SEC. 5105. OBLIGATION LIMITATION FOR FLOOD CONTROL

5 AND COASTAL EMERGENCIES.

6 The total of obligations incurred in fiscal year 1996

7 for expenses of the Corps of Engineers described under

8 the heading ‘‘Flood Control and Coastal Emergencies’’ in

9 title I of the Energy and Water Development Appropria10 tions Act, 1995 (Public Law 103–316; 108 Stat. 1710)

11 may not exceed $15,000,000.

12 SEC. 5106. OBLIGATION LIMITATION FOR FLOOD CONTROL,

13 MISSISSIPPI RIVER AND TRIBUTARIES.

14 The total of obligations incurred in fiscal year 1996

15 for expenses of the Corps of Engineers described under

16 the heading ‘‘Flood Control, Mississippi River and Tribu17 taries, Arkansas, Illinois, Kentucky, Louisiana, Mis18 sissippi, Missouri, and Tennessee’’ in title I of the Energy

19 and Water Development Appropriations Act, 1995 (Public

20 Law 103–316; 108 Stat. 1709) may not exceed

21 $320,000,000.
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1 Subtitle C—Restructuring of

2 Department of the Interior

3 SEC. 5201. LIMITATION ON ACQUISITION OF LANDS BY BU4 REAU OF LAND MANAGEMENT.

5 (a) CONGRESSIONAL FINDINGS.—The Congress finds

6 that—

7 (1) the Bureau of Land Management presently

8 holds title to 1,800,000,000 acres of public land;

9 (2) much of this land is marginal in value and

10 left over from the 19th century;

11 (3) in many cases, the costs of maintaining and

12 surveying this land far exceed the actual value of

13 these parcels;

14 (4) the agency is presently facing a sizable

15 budget backlog which is hampering its ability to

16 properly manage all of this property;

17 (5) under the Federal Land Policy and Man18 agement Act of 1976, the Bureau is required to

19 identify public lands suitable for sale, exchange, or

20 transfer; and

21 (6) the transfer of some of these parcels could

22 effect budget savings and greater management effi23 ciencies for the Bureau.

24 (b) ACQUISITION OF LANDS BY BUREAU OF LAND

25 MANAGEMENT.—
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1 (1) PROHIBITION.—Except as provided by sub2 section (c), amounts appropriated or otherwise made

3 available after the date of the enactment of this Act

4 may not be obligated or expended by the Secretary

5 of the Interior (hereafter in this section referred to

6 as the ‘‘Secretary’’) for the acquisition of any lands

7 or interests therein which are to be administered by

8 the Bureau of Land Management.

9 (2) ACQUISITION BY DONATION OR EXCHANGE

10 OR WITH AMOUNTS FROM FUND.—After the date of

11 the enactment of this Act, the Secretary may acquire

12 lands or interests therein for administration by the

13 Bureau of Land Management only by exchange, by

14 donation, or from amounts made available from the

15 Fund pursuant to subsection (c).

16 (c) BUREAU OF LAND MANAGEMENT LAND SALE

17 AND ACQUISITION FUND.—

18 (1) ESTABLISHMENT.—There is established in

19 the Department of the Interior a fund to be known

20 as the ‘‘Bureau of Land Management Land Sale

21 and Acquisition Fund’’ (hereafter in this section re22 ferred to as the ‘‘Fund’’).

23 (2) ADMINISTRATION.—The Fund shall be ad24 ministered by the Secretary.
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1 (3) DEPOSITS INTO FUND.—There shall be de2 posited into the Fund—

3 (A) all amounts received by the Secretary

4 from the disposal of any lands or interests

5 therein administered by the Bureau of Land

6 Management; and

7 (B) all amounts received by the United

8 States by gift for acquisition of lands to be ad9 ministered by the Bureau of Land Manage10 ment.

11 (4) EXPENDITURES FROM FUND.—Amounts

12 may be made available from the Fund, subject to ap13 propriation, for the acquisition of lands or interests

14 therein to be administered by the Bureau of Land

15 Management.

16 (d) INFORMATION REQUIRED TO BE INCLUDED IN

17 ANNUAL BUDGET REQUESTS RELATING TO TRANSFER

18 OR DISPOSAL OF PUBLIC LANDS.—Each annual budget

19 request submitted by the Secretary to the Congress shall

20 be accompanied by information as to whether the Bureau

21 of Land Management, through preparation of land-use

22 plans pursuant to the Federal Land Policy and Manage23 ment Act of 1976, has identified public lands which are

24 suitable for transfer to other management or for disposal

25 through exchange or otherwise, the transfer or disposal
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1 of which has been delayed because of incomplete surveys

2 or other reasons. If enactment of additional legislation

3 would be desirable in order to facilitate the transfer or

4 disposal of public lands described in the request, the Sec5 retary may include a proposal for such additional legisla6 tion in such request.

7 SEC. 5202. ABOLITION OF BUREAU OF MINES.

8 (a) TERMINATION OF FUNCTIONS, POSITIONS, AND

9 OFFICES.—Upon the effective date of this Act, the Bureau

10 of Mines shall be terminated and all functions of the Bu11 reau and all positions and offices within the Bureau shall

12 be terminated. As promptly as possible after the effective

13 date of this Act the Administrator of the General Services

14 Administration shall dispose of all facilities and property

15 of the Bureau (including all research facilities and equip16 ment owned by the Bureau) in accordance with the Fed17 eral Property and Administrative Services Act and other

18 applicable provisions of law.

19 (b) ADMINISTRATIVE PROVISIONS.—The provisions

20 of this section shall not affect suits commenced prior to

21 the date this section takes effect. In all such suits, pro22 ceedings shall be had, appeals taken, and judgments ren23 dered in the same manner and effect as if this section had

24 not been enacted. No suit, action, or other proceeding

25 commenced by or against any officer in his official capac-
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1 ity as an officer of the Bureau of Mines shall abate by

2 reason of the enactment of this section. No cause of action

3 by or against the Bureau of Mines or by or against any

4 officer thereof in his official capacity shall abate by reason

5 of the enactment of this section. Any suit, action, or other

6 proceeding brought against the Bureau of Mines or and

7 officer thereof in his official capacity shall be continued

8 with the Secretary of the Interior substituted as the de9 fendant.

10 SEC. 5203. SALE OF HELIUM PROCESSING AND STORAGE

11 FACILITY.

12 (a) REFERENCES.—Except as otherwise expressly

13 provided, whenever in this section an amendment or repeal

14 is expressed in terms of an amendment to, or repeal of,

15 a section or other provision, the reference shall be consid16 ered to be made to a section or other provision of the He17 lium Act (50 U.S.C. 167 to 167n).

18 (b) AUTHORITY OF SECRETARY.—Sections 3, 4, and

19 5 are amended to read as follows:

20 ‘‘SEC. 3. AUTHORITY OF SECRETARY.

21 ‘‘(a) EXTRACTION AND DISPOSAL OF HELIUM ON

22 FEDERAL LANDS.—(1) The Secretary may enter into

23 agreements with private parties for the recovery and dis24 posal of helium on Federal lands upon such terms and

25 conditions as he deems fair, reasonable and necessary. The
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1 Secretary may grant leasehold rights to any such helium.

2 The Secretary may not enter into any agreement by which

3 the Secretary sells such helium other than to a private

4 party with whom the Secretary has an agreement for re5 covery and disposal of helium. Such agreements may be

6 subject to such rules and regulations as may be prescribed

7 by the Secretary.

8 ‘‘(2) Any agreement under this subsection shall be

9 subject to the existing rights of any affected Federal oil

10 and gas lessee. Each such agreement (and any extension

11 or renewal thereof) shall contain such terms and condi12 tions as deemed appropriate by the Secretary.

13 ‘‘(3) This subsection shall not in any manner affect

14 or diminish the rights and obligations of the Secretary and

15 private parties under agreements to dispose of helium pro16 duced from Federal lands in existence at the enactment

17 of the Helium Act of 1994 except to the extent that such

18 agreements are renewed or extended after such date.

19 ‘‘(b) STORAGE, TRANSPORTATION AND SALE.—The

20 Secretary is authorized to store, transport, and sell helium

21 only in accordance with this Act.

22 ‘‘(c) MONITORING AND REPORTING.—The Secretary

23 is authorized to monitor helium production and helium re24 serves in the United States and to periodically prepare re-
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1 ports regarding the amounts of helium produced and the

2 quantity of crude helium in storage in the United States.

3 ‘‘SEC. 4. STORAGE AND TRANSPORTATION OF CRUDE

4 HELIUM.

5 ‘‘(a) STORAGE AND TRANSPORTATION.—The Sec6 retary is authorized to store and transport crude helium

7 and to maintain and operate existing crude helium storage

8 at the Bureau of Mines Cliffside Field, together with relat9 ed helium transportation and withdrawal facilities.

10 ‘‘(b) CESSATION OF PRODUCTION, REFINING, AND

11 MARKETING.—Effective one year after the date of enact12 ment of the Helium Act of 1994, the Secretary shall cease

13 producing, refining and marketing refined helium and

14 shall cease carrying out all other activities relating to he15 lium which the Secretary was authorized to carry out

16 under this Act before the date of enactment of the Helium

17 Act of 1994, except those activities described in subsection

18 (a).

19 ‘‘(c) DISPOSAL OF FACILITIES.—(1) Within one year

20 after the date of enactment of the Helium Act of 1994,

21 the Secretary shall dispose of all facilities, equipment, and

22 other real and personal property, together with all inter23 ests therein, held by the United States for the purpose

24 of producing, refining and marketing refined helium. The

25 disposal of such property shall be in accordance with the
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1 provisions of law governing the disposal of excess or sur2 plus properties of the United States.

3 ‘‘(2) All proceeds accruing to the United States by

4 reason of the sale or other disposal of such property shall

5 be treated as moneys received under this chapter for pur6 poses of section 6(f). All costs associated with such sale

7 and disposal (including costs associated with termination

8 of personnel) and with the cessation of activities under

9 subsection (b) shall be paid from amounts available in the

10 helium production fund established under section 6(f).

11 ‘‘(3) Paragraph (1) shall not apply to any facilities,

12 equipment, or other real or personal property, or any in13 terest therein, necessary for the storage and transpor14 tation of crude helium.

15 ‘‘(d) EXISTING CONTRACTS.—All contracts which

16 were entered into by any person with the Secretary for

17 the purchase by such person from the Secretary of refined

18 helium and which are in effect on the date of the enact19 ment of the Helium Act of 1994 shall remain in force and

20 effect until the date on which the facilities referred to in

21 subsection (c) are disposed of. Any costs associated with

22 the termination of such contracts shall be paid from the

23 helium production fund established under section 6(f).
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1 ‘‘SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITH2 DRAWAL.

3 ‘‘Whenever the Secretary provides helium storage,

4 withdrawal, or transportation services to any person, the

5 Secretary is authorized and directed to impose fees on

6 such person to reimburse the Secretary for the full costs

7 of providing such storage, transportation, and withdrawal.

8 All such fees received by the Secretary shall be treated

9 as moneys received under this Act for purposes of section

10 6(f).’’.

11 (c) SALE OF CRUDE HELIUM.—Section 6 is amended

12 as follows:

13 (1) Subsection (a) is amended by striking out

14 ‘‘from the Secretary’’ and inserting ‘‘from persons

15 who have entered into enforceable contracts to pur16 chase an equivalent amount of crude helium from

17 the Secretary’’.

18 (2) Subsection (b) is amended by inserting

19 ‘‘crude’’ before ‘‘helium’’ and by adding the follow20 ing at the end thereof: ‘‘Except as may be required

21 by reason of subsection (a), the Secretary shall not

22 make sales of crude helium under this section in

23 such amounts as will disrupt the market price of

24 crude helium.’’.

25 (3) Subsection (c) is amended by inserting

26 ‘‘crude’’ before ‘‘helium’’ after the words ‘‘Sales of’’
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1 and by striking ‘‘together with interest as provided

2 in this subsection’’ and all that follows down

3 through the period at the end of such subsection and

4 inserting the following: ‘‘all funds required to be re5 paid to the United States as of October 1, 1993

6 under this section (hereinafter referred to as ‘repay7 able amounts’). The price at which crude helium is

8 sold by the Secretary shall not be less than the

9 amount determined by the Secretary as follows:

10 ‘‘(1) Divide the outstanding amount of such re11 payable amounts by the volume (in mcf) of crude he12 lium owned by the United States and stored in the

13 Bureau of Mines Cliffside Field at the time of the

14 sale concerned.

15 ‘‘(2) Adjust the amount determined under para16 graph (1) by the Consumer Price Index for years be17 ginning after December 31, 1993.’’.

18 (4) Subsection (d) is amended to read as fol19 lows:

20 ‘‘(d) EXTRACTION OF HELIUM FROM DEPOSITS ON

21 FEDERAL LANDS.—All moneys received by the Secretary

22 from the sale or disposition of helium on Federal lands

23 shall be paid to the Treasury and credited against the

24 amounts required to be repaid to the Treasury under sub25 section (c) of this section.’’.
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1 (5) Subsection (e) is repealed.

2 (6) Subsection (f) is amended by inserting

3 ‘‘(1)’’ after ‘‘(f)’’ and by adding the following at the

4 end thereof:

5 ‘‘(2) Within 7 days after the commencement of each

6 fiscal year after the disposal of the facilities referred to

7 in section 4(c), all amounts in such fund in excess of

8 $2,000,000 (or such lesser sum as the Secretary deems

9 necessary to carry out this Act during such fiscal year)

10 shall be paid to the Treasury and credited as provided in

11 paragraph (1). Upon repayment of all amounts referred

12 to in subsection (c), the fund established under this sec13 tion shall be terminated and all moneys received under this

14 Act shall be deposited in the Treasury as General Reve15 nues.’’.

16 (d) ELIMINATION OF STOCKPILE.—Section 8 is

17 amended to read as follows:

18 ‘‘SEC. 8. ELIMINATION OF STOCKPILE.

19 ‘‘(a) REVIEW OF RESERVES.—Not later than Janu20 ary 1, 2014 the Secretary shall review the known helium

21 reserves in the United States and make a determination

22 as to the expected life of the domestic helium reserves

23 (other than federally owned helium stored at the Cliffside

24 Reservoir) at that time.
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1 ‘‘(b) RESERVES BELOW 1 BCF IN 2014.—Not later

2 than January 1, 2014, if the Secretary determines that

3 domestic helium reserves (other than federally owned he4 lium stored at the Cliffside Reservoir) are less than 1 bil5 lion cubic feet (bcf), the Secretary shall commence making

6 sales of crude helium from helium reserves owned by the

7 United States in such amounts as may be necessary to

8 dispose of all such helium reserves in excess of 600 million

9 cubic feet (mcf) by January 1, 2019. The sales shall be

10 at such times and in such lots as the Secretary determines,

11 in consultation with the helium industry, necessary to

12 carry out this subsection. The price for all such sales, as

13 determined by the Secretary in consultation with the he14 lium industry, shall be such as will ensure repayment of

15 the amounts required to be repaid to the Treasury under

16 section 6(c) by the year 2019 with minimum market dis17 ruption. The date specified in this subsection for comple18 tion of such sales and for repayment of debt may be ex19 tended by the Secretary for a period of not to exceed 5

20 additional years if necessary in order to assure repayment

21 of such debt with minimum market disruption.

22 ‘‘(c) RESERVES ABOVE 1 BCF IN 2014.—Not later

23 than January 1, 2014, if the Secretary determines that

24 domestic helium reserves (other than federally owned he25 lium stored at the Cliffside Reservoir) are more than 1
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1 billion cubic feet (bcf), the Secretary shall commence mak2 ing sales of crude helium from helium reserves owned by

3 the United States in such amounts as may be necessary

4 to dispose of all such helium reserves in excess of 600 mil5 lion cubic feet (mcf) by January 1, 2024. The sales shall

6 be at such times and in such lots as the Secretary deter7 mines, in consultation with the helium industry, necessary

8 to carry out this subsection with minimum disruption of

9 the market for crude helium.

10 ‘‘(d) DISCOVERY OF ADDITIONAL RESERVES.—The

11 discovery of additional helium reserves after the year 2014

12 shall not affect the duty of the Secretary to make sales

13 of helium as provided in subsection (b) or (c), as the case

14 may be.’’.

15 (e) REPEAL OF AUTHORITY TO BORROW.—Sections

16 12 and 15 are repealed.

17 SEC. 5204. ABOLITION OF GEOLOGICAL SURVEY.

18 (a) TRANSFER OF BASIC RESEARCH FUNCTIONS TO

19 NATIONAL SCIENCE FOUNDATION.—Upon the effective

20 date of this section there shall be transferred to and vested

21 in the National Science Foundation all basic research

22 functions of the United States Geological Survey.

23 (b) TRANSFER OF STREAM MONITORING FUNC24 TIONS.—Upon the effective date of this Act there shall be

25 transferred to and vested in the Administrator of the En-
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1 vironmental Protection Agency all stream monitoring

2 functions of the United States Geological Survey, (to3 gether with all other water resources and water quality

4 investigation functions of the Survey).

5 (c) TERMINATION OF OTHER FUNCTIONS, POSI6 TIONS, AND OFFICES.—Upon the effective date of this sec7 tion, the United States Geological Survey shall be termi8 nated and all functions of the Survey not transferred

9 under this section shall be terminated. As promptly as pos10 sible after the effective date of this Act the Administrator

11 of the General Services Administration shall dispose of all

12 facilities and property of the Survey (including all research

13 facilities and equipment owned by the Survey and used

14 for purposes of basic research, such as the seismic network

15 and volcano observatories) in accordance with the Federal

16 Property and Administrative Services Act and other appli17 cable provisions of law. Each position and office within

18 the United States Geological Survey which was performing

19 a function terminated by this subsection shall terminate.

20 (d) ADMINISTRATIVE PROVISIONS.—

21 (1) AUTHORITIES TRANSFERRED.—To the ex22 tent necessary or appropriate to perform any func23 tion transferred by this section, the head of the

24 agency or instrumentality to which such function is

25 transferred may exercise, in carrying out the func-
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1 tion so transferred, any authority or part thereof

2 available by law, including appropriation Acts, to the

3 United States Geological Survey or any official

4 thereof.

5 (2) TRANSFER AND ALLOCATIONS OF APPRO6 PRIATIONS AND PERSONNEL.—(A) Except as other7 wise provided in this section, the personnel employed

8 in connection with, and the assets, liabilities, con9 tracts, property, records, and unexpended balance of

10 appropriations authorizations, allocations, and other

11 funds employed, held, used, arising from, available

12 to or to be made available in connection with the

13 functions transferred by this section, are hereby

14 transferred to the National Science Foundation (in

15 the case of functions referred to in subsection (a))

16 or to the Administrator of the Environmental Pro17 tection Agency (in the case of functions referred to

18 in subsection (b)) for appropriate allocation. Unex19 pended funds transferred pursuant to this subsection

20 shall only be used for the purposes for which the

21 funds were originally authorized and appropriated.

22 (3) EFFECT ON PERSONNEL.—(A) Except as

23 otherwise provided in this section, the transfer pur24 suant to this section of full-time personnel (except

25 special Government employees) and part-time per-
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1 sonnel holding permanent positions pursuant to this

2 section shall not cause any such employee to be sep3 arated or reduced in grade or compensation for one

4 year after the date of enactment of this Act.

5 (B) Any person who, on the effective date of

6 this section, held a position compensated in accord7 ance with the Executive Schedule prescribed in chap8 ter 53 of title 5, United States Code, and who, with9 out a break in service, is appointed in National

10 Science Foundation or the Environmental Protection

11 Agency to a position having duties comparable to

12 those performed immediately preceding his appoint13 ment shall continue to be compensated in his new

14 position at not less than the rate provided for his

15 previous position, for the duration of his service in

16 the new position.

17 (e) INCIDENTAL TRANSFERS.—The Director of the

18 Office of Management and Budget, in consultation with

19 the Secretary of the Interior, is authorized and directed

20 to make such determinations as may be necessary with

21 regard to the transfer of functions which relate to or are

22 utilized by the United States geological Survey, to make

23 such additional incidental dispositions of personnel, assets,

24 liabilities, contracts, property, records, and unexpended

25 balances of appropriations, authorizations, allocations,
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1 and other funds held, used, arising from, available to or

2 to be made available in connection with the functions

3 transferred by this section, as he may deem necessary to

4 accomplish the purposes of this section.

5 (f) SAVINGS PROVISIONS.—(1) All orders, determina6 tions, rules, regulations, permits, contracts, certificates, li7 censes, and privileges—

8 (A) which have been issued, made, granted, or

9 allowed to become effective in the performance of

10 functions which are transferred under this section,

11 and

12 (B) which are in effect at the time this section

13 takes effect,

14 shall continue in effect according to their terms until

15 modified, terminated, superseded, set aside, or revoked in

16 accordance with law by the President, the Secretary of the

17 Interior, the National Science Foundation, the Adminis18 trator of the Environmental Protection Agency, or other

19 authorized officials, a court of competent jurisdiction, or

20 by operation of law.

21 (2) Except as provided in paragraph (4)—

22 (A) the provisions of this section shall not af23 fect suits commenced prior to the date this section

24 takes effect, and
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1 (B) in all such suits, proceedings shall be had,

2 appeals taken, and judgments rendered in the same

3 manner and effect as if this section had not been en4 acted.

5 (3) No suit, action, or other proceeding commenced

6 by or against any officer in his official capacity as an offi7 cer of the United States Geological Survey shall abate by

8 reason of the enactment of this section. No cause of action

9 by or against the United States Geological Survey or by

10 or against any officer thereof in his official capacity shall

11 abate by reason of the enactment of this section.

12 (4) If, before the date on which this section takes ef13 fect, the United States Geological Survey or officer thereof

14 in his official capacity is a party to a suit, and under this

15 section, any function of the Survey or of such officer is

16 transferred to the National Science Foundation or the Ad17 ministrator of the Environmental Protection Agency, then

18 such suit shall be continued with the National Science

19 Foundation or the Administrator, as the case may be, sub20 stituted.

21 (g) REFERENCES.—With respect to any functions

22 transferred by this section, any reference in any other

23 Federal law to the United States Geological Survey or any

24 officer or office the functions of which are so transferred

25 shall be deemed to refer to the National Science Founda-
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1 tion or the Administrator of the Environmental Protection

2 Agency or the officer or office thereof in which this section

3 vests such functions.

4 SEC. 5205. DOWNSIZING OF MINERALS MANAGEMENT SERV5 ICE.

6 Upon the enactment of this Act, the functions of the

7 Outer Continental Shelf Regional Offices of the Minerals

8 Management Service serving Alaska, the Pacific Coast and

9 the Atlantic regions shall be transferred to such officer

10 within the Department of the Interior as may be des11 ignated by the Secretary of the Interior and the Secretary

12 shall take such actions as may be necessary to terminate

13 those regional offices.

14 SEC. 5206. DOWNSIZING OF BUREAU OF RECLAMATION

15 Notwithstanding any other provision of law, amounts

16 appropriated for the fiscal year 1996 and for each of the

17 4 following fiscal years (not including spending authority

18 from offsetting collections) for the construction program

19 of the Bureau of Reclamation shall not exceed

20 $249,573,000. Notwithstanding any other provision of

21 law, amounts appropriated for the fiscal year 1996 and

22 for each of the 4 following fiscal years (not including

23 spending authority from offsetting collections) for the op24 eration and maintenance of reclamation projects or parts
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1 thereof and other facilities of the Bureau of Reclamation

2 shall not exceed $282,898,000.

3 SEC. 5207. CONSOLIDATION OF BUREAU OF INDIAN AF4 FAIRS.

5 Not later than one year after the date of the enact6 ment of this Act, the Secretary of the Interior shall con7 solidate the area service offices of the Bureau of Indian

8 Affairs into six offices, of which four shall be regional serv9 ice centers and two shall be special service offices. In car10 rying out this section, the Secretary shall consult with the

11 Task Force on Bureau of Indian Affairs Reorganization,

12 as provided in the Department of the Interior and Related

13 Agencies Appropriations Act, 1994 (Public Law 103–

14 138).

15 SEC. 5208. ABOLITION OF OFFICE OF TERRITORIAL AND

16 INTERNATIONAL AFFAIRS.

17 (a) IN GENERAL.—The Office of Territorial and

18 International Affairs of the Department of the Interior,

19 established pursuant to the Order of the Secretary of the

20 Interior 3046, of February 14, 1980, as amended, is here21 by abolished.

22 (b) TRANSFER OF RESPONSIBILITIES.—All respon23 sibilities of the Office of Territorial and International Af24 fairs relating to the administration or termination of the

25 Trust Territory of the Pacific Islands, to the implementa-
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1 tion of the Compact of Free Association between the Gov2 ernment of the United States of America and the Govern3 ment of Palau (48 U.S.C. 1681 note), or to the implemen4 tation of the Compact of Free Association between the

5 Government of the United States of America and the Gov6 ernments of the Marshall Islands and the Federated

7 States of Micronesia (48 U.S.C. 1681 note), are hereby

8 transferred to the Office of East Asian and Pacific Affairs

9 of the Department of State. All responsibilities of the Of10 fice of Territorial and International Affairs relating to

11 technical operations, or management assistance and not

12 described in the preceding sentence are hereby transferred

13 to the Department of Commerce.

14 (c) ELIMINATION OF POSITION OF ASSISTANT SEC15 RETARY.—

16 (1) IN GENERAL.—The position of Assistant

17 Secretary for Territorial and International Affairs at

18 the Department of the Interior is hereby eliminated.

19 (2) CONFORMING AMENDMENT.—Section 5315

20 of title 5, United States Code, is amended by strik21 ing ‘‘Assistant Secretaries of the Interior (6).’’ and

22 inserting ‘‘Assistant Secretaries of the Interior (5).’’.

23 (d) EFFECTIVE DATE.—This subsection shall take

24 effect on October 1, 1995.
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1 SEC. 5209. ABOLITION OF NATIONAL BIOLOGICAL SURVEY.

2 (a) IN GENERAL.—The National Biological Survey is

3 hereby abolished.

4 (b) PROHIBITION OF APPROPRIATIONS.—No funds

5 are authorized to be appropriated for the National Biologi6 cal Survey.

7 SEC. 5210. HARDROCK MINING ROYALTIES.

8 (a) DEFINITIONS.—As used in this section:

9 (1) The term ‘‘locatable mineral’’ means any

10 mineral not subject to disposition under any of the

11 following:

12 (A) The Mineral Leasing Act (30 U.S.C.

13 181 and following).

14 (B) The Geothermal Steam Act of 1970

15 (30 U.S.C. 100 and following).

16 (C) The Act of July 31, 1947, commonly

17 known as the Materials Act of 1947 (30 U.S.C.

18 601 and following).

19 (D) The Mineral Leasing for Acquired

20 Lands Act (30 U.S.C. 351 and following).

21 (2) The term ‘‘mineral activities’’ means any

22 activity for, related to or incidental to mineral explo23 ration, mining, beneficiation and processing activi24 ties for any locatable mineral, including access.

25 When used with respect to this term:
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1 (A) The term ‘‘exploration’’ means those

2 techniques employed to locate the presence of a

3 locatable mineral deposit and to establish its

4 nature, position, size, shape, grade and value.

5 (B) The term ‘‘mining’’ means the proc6 esses employed for the extraction of a locatable

7 mineral from the earth.

8 (C) The term ‘‘beneficiation’’ means the

9 crushing and grinding of locatable mineral ore

10 and such processes are employed to free the

11 mineral from other constituents, including but

12 not necessarily limited to, physical and chemical

13 separation techniques.

14 (D) The term ‘‘processing’’ means proc15 esses downstream of beneficiation employed to

16 prepare locatable mineral ore into the final

17 marketable product, including but not limited

18 to, smelting and electrolytic refining.

19 (3) The term ‘‘mining claim’’ means a claim for

20 the purposes of mineral activities.

21 (4) The term ‘‘Secretary’’ means, unless other22 wise provided in this section, the Secretary of the

23 Interior acting through the Director of the Minerals

24 Management Service.
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1 (b) RESERVATION OF ROYALTY.—Production of all

2 locatable minerals from any mining claim located under

3 the general mining laws, or mineral concentrates or prod4 ucts derived from locatable minerals from any mining

5 claim located under the general mining laws, as the case

6 may be, shall be subject to a royalty of 8 percent of the

7 gross income from such production. The claimholder and

8 any operator to whom the claimholder has assigned the

9 obligation to make royalty payments under the claim and

10 any person who controls such claimholder or operator shall

11 be jointly and severally liable for payment of such royal12 ties.

13 (c) DUTIES OF CLAIM HOLDERS, OPERATORS, AND

14 TRANSPORTERS.—(1) A person—

15 (A) who is required to make any royalty pay16 ment under this section shall make such payments

17 to the United States at such times and in such man18 ner as the Secretary may by rule prescribe; and

19 (B) shall notify the Secretary, in the time and

20 manner as may be specified by the Secretary, of any

21 assignment that such person may have made of the

22 obligation to make any royalty or other payment

23 under a mining claim.

24 (2) Any person paying royalties under this section

25 shall file a written instrument, together with the first roy-
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1 alty payment, affirming that such person is liable to the

2 Secretary for making proper payments for all amounts due

3 for all time periods for which such person as a payment

4 responsibility. Such liability for the period referred to in

5 the preceding sentence shall include any and all additional

6 amounts billed by the Secretary and determined to be due

7 by final agency or judicial action. Any person liable for

8 royalty payments under this section who assigns any pay9 ment obligation shall remain jointly and severally liable

10 for all royalty payments due for the claim for the period.

11 (3) A person conducting mineral activities shall—

12 (A) develop and comply with the site security

13 provisions in operations permit designed to protect

14 from theft the locatable minerals, concentrates or

15 products derived therefrom which are produced or

16 stored on a mining claim, and such provisions shall

17 conform with such minimum standards as the Sec18 retary may prescribe by rule, taking into account the

19 variety of circumstances on mining claims; and

20 (B) not later than the 5th business day after

21 production begins anywhere on a mining claim, or

22 production resumes after more than 90 days after

23 production was suspended, notify the Secretary, in

24 the manner prescribed by the Secretary, of the date

25 on which such production has begun or resumed.
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1 (4) The Secretary may by rule require any person en2 gaged in transporting a locatable mineral, concentrate, or

3 product derived therefrom to carry on his or her person,

4 in his or her vehicle, or in his or her immediate control,

5 documentation showing, at a minimum, the amount, ori6 gin, and intended destination of the locatable mineral, con7 centrate, or product derived therefrom in such cir8 cumstances as the Secretary determines is appropriate.

9 (d) RECORDKEEPING AND REPORTING REQUIRE10 MENTS.—(1) A claim holder, operator, or other person di11 rectly involved in developing, producing, processing, trans12 porting, purchasing, or selling locatable minerals, con13 centrates, or products derived therefrom, subject to this

14 Act, through the point of royalty computation shall estab15 lish and maintain any records, make any reports, and pro16 vide any information that the Secretary may reasonably

17 require for the purposes of implementing this section or

18 determining compliance with rules or orders under this

19 section. Such records shall include, but not be limited to,

20 periodic reports, records, documents, and other data. Such

21 reports may also include, but not be limited to, pertinent

22 technical and financial data relating to the quantity, qual23 ity, composition volume, weight, and assay of all minerals

24 extracted from the mining claim. Upon the request of any

25 officer or employee duly designated by the Secretary or
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1 any State conducting an audit or investigation pursuant

2 to this section, the appropriate records, reports, or infor3 mation which may be required by this section shall be

4 made available for inspection and duplication by such offi5 cer or employee or State.

6 (2) Records required by the Secretary under this sec7 tion shall be maintained for 6 years after cessation of all

8 mining activity at the claim concerned unless the Sec9 retary notifies the operator that he or she has initiated

10 an audit or investigation involving such records and that

11 such records must be maintained for a longer period. In

12 any case when an audit or investigation is underway,

13 records shall be maintained until the Secretary releases

14 the operator of the obligation to maintain such records.

15 (e) AUDITS.—The Secretary is authorized to conduct

16 such audits of all claim holders, operators, transporters,

17 purchasers, processors, or other persons directly or indi18 rectly involved in the production or sales of minerals cov19 ered by this section, as the Secretary deems necessary for

20 the purposes of ensuring compliance with the require21 ments of this section. For purposes of performing such

22 audits, the Secretary shall, at reasonable times and upon

23 request, have access to, and may copy, all books, papers

24 and other documents that relate to compliance with any

25 provision of this section by any person.
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1 (f) COOPERATIVE AGREEMENTS.—(1) The Secretary

2 is authorized to enter into cooperative agreements with the

3 Secretary of Agriculture to share information concerning

4 the royalty management of locatable minerals, con5 centrates, or products derived therefrom, to carry out in6 spection, auditing, investigation, or enforcement (not in7 cluding the collection of royalties, civil or criminal pen8 alties, or other payments) activities under this section in

9 cooperation with the Secretary, and to carry out any other

10 activity described in this section.

11 (2) Except as provided in paragraph (4)(A) of this

12 subsection (relating to trade secrets), and pursuant to a

13 cooperative agreement, the Secretary of Agriculture shall,

14 upon request, have access to all royalty accounting infor15 mation in the possession of the Secretary respecting the

16 production, removal, or sale of locatable minerals, con17 centrates, or products derived therefrom from claims on

18 lands open to location under the general mining laws.

19 (3) Trade secrets, proprietary, and other confidential

20 information shall be made available by the Secretary pur21 suant to a cooperative agreement under this subsection to

22 the Secretary of Agriculture upon request only if—

23 (A) the Secretary of Agriculture consents in

24 writing to restrict the dissemination of the informa25 tion to those who are directly involved in an audit
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1 or investigation under this section and who have a

2 need to know;

3 (B) the Secretary of Agriculture accepts liabil4 ity for wrongful disclosure; and

5 (C) the Secretary of Agriculture demonstrates

6 that such information is essential to the conduct of

7 an audit or investigation under this subsection.

8 (g) INTEREST AND SUBSTANTIAL UNDERREPORTING

9 ASSESSMENTS.—(1) In the case of mining claims where

10 royalty payments are not received by the Secretary on the

11 date that such payments are due, the Secretary shall

12 charge interest on such under payments at the same inter13 est rate as is applicable under section 6621(a)(2) of the

14 Internal Revenue Code of 1986. In the case of an

15 underpayment, interest shall be computed and charged

16 only on the amount of the deficiency and not on the total

17 amount.

18 (2) If there is any underreporting of royalty owed on

19 production from a claim for any production month by any

20 person liable for royalty payments under this section, the

21 Secretary may assess a penalty of 10 percent of the

22 amount of that underreporting.

23 (3) If there is a substantial underreporting of royalty

24 owed on production from a claim for any production

25 month by any person responsible for paying the royalty,
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1 the Secretary may assess a penalty of 10 percent of the

2 amount of that underreporting.

3 (4) For the purposes of this subsection, the term

4 ‘‘substantial underreporting’’ means the difference be5 tween the royalty on the value of the production which

6 should have been reported and the royalty on the value

7 of the production which was reported, if the value which

8 should have been reported is greater than the value which

9 was reported. An underreporting constitutes a ‘‘substan10 tial underreporting’’ if such difference exceeds 10 percent

11 of the royalty on the value of production which should

12 have been reported.

13 (5) The Secretary shall not impose the assessment

14 provided in paragraphs (2) or (3) of this subsection if the

15 person liable for royalty payments under this section cor16 rects the underreporting before the date such person re17 ceives notice from the Secretary that an underreporting

18 may have occurred, or before 90 days after the date of

19 the enactment of this section, whichever is later.

20 (6) The Secretary shall waive any portion of an as21 sessment under paragraph (2) or (3) of this subsection

22 attributable to that portion of the underreporting for

23 which the person responsible for paying the royalty dem24 onstrates that—
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1 (A) such person had written authorization from

2 the Secretary to report royalty on the value of the

3 production on basis on which it was reported,

4 (B) such person had substantial authority for

5 reporting royalty on the value of the production on

6 the basis on which it was reported,

7 (C) such person previously had notified the Sec8 retary, in such manner as the Secretary may by rule

9 prescribe, of relevant reasons or facts affecting the

10 royalty treatment of specific production which led to

11 the underreporting, or

12 (D) such person meets any other exception

13 which the Secretary may, by rule, establish.

14 (7) All penalties collected under this subsection shall

15 be deposited in the Treasury.

16 (h) EFFECTIVE DATE.—The royalty under this sec17 tion shall take effect with respect to the production of

18 locatable minerals after the enactment of this Act, but any

19 royalty payments attributable to production during the

20 first 12 calendar months after the enactment of this Act

21 shall be payable at the expiration of such 12-month period.
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1 Subtitle D—Administrative Reform

2 SEC. 5301. REDUCTION IN OVERHEAD EXPENSES OF ENVI3 RONMENTAL PROTECTION AGENCY.

4 (a) IN GENERAL.—The amount obligated by the En5 vironmental Protection Agency during fiscal year 1996 for

6 overhead expenses shall not exceed an amount sufficient

7 to reduce outlays for such expenses during such fiscal year

8 (as compared to such outlays during fiscal year 1995) by

9 $151,000,000.

10 (b) OVERHEAD EXPENSES.—For purposes of this

11 section, the term ‘‘overhead expenses’’ means expenses

12 within the following object classifications established by

13 the Director of the Office of Management and Budget:

14 (1) 21.0 (travel and transportation of persons).

15 (2) 22.0 (transportation of things).

16 (3) 23.1 (rental payments to GSA).

17 (4) 23.3 (communications, utilities, and mis18 cellaneous charges).

19 (5) 24.0 (printing and reproduction).

20 (6) 25.1 (consulting services).

21 (7) 25.2 (other services).

22 (8) 25.5 (research and development contracts).

23 (9) 26.0 (supplies and materials).

24 (10) 31 (equipment).
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1 Subtitle E—National Marine

2 Program Reforms

3 SEC. 5401. TERMINATION OF NATIONAL COASTAL ZONE

4 MANAGEMENT GRANTS AND NATIONAL SEA

5 GRANT COLLEGE PROGRAM GRANTS.

6 (a) TERMINATION OF GRANT AUTHORITY.—Notwith7 standing any other provision of law, no grant may be made

8 under—

9 (1) the Coastal Zone Management Act of 1972

10 (16 U.S.C. 1451 et seq.); or

11 (2) the National Sea Grant College Program

12 Act (33 U.S.C. 1121 et seq.).

13 (b) EXISTING GRANT AGREEMENTS NOT AF14 FECTED.—This section shall not affect any grant agree15 ment in effect before the date of the enactment of this

16 Act.

17 SEC. 5402. DISPOSAL OF NATIONAL OCEANIC AND ATMOS18 PHERIC ADMINISTRATION FLEET.

19 (a) DISPOSAL OF NOAA FLEET.—The Secretary of

20 Commerce—

21 (1) shall expeditiously dispose of all ownership

22 interest of the United States in all vessels in the Na23 tional Oceanic and Atmospheric Administration

24 fleet;
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1 (2) may not acquire any ownership interest in

2 any vessel for use by the National Oceanic and

3 Atmospheric Administration;

4 (3) may obtain vessels for use by the National

5 Oceanic and Atmospheric Administration only by

6 charter of privately-owned vessels; and

7 (4) may obtain vessel operation services for the

8 National Oceanic and Atmospheric Administration

9 only under contracts with private-sector sources.

10 (b) EXISTING CONTRACTS NOT AFFECTED.—This

11 section shall not affect any contract in effect before the

12 date of the enactment of this Act.

13 SEC. 5403. RESCISSION OF FUNDS AVAILABLE FOR NA14 TIONAL OCEANIC AND ATMOSPHERIC ADMIN15 ISTRATION PROCUREMENT AND MODERNIZA16 TION.

17 Of the funds made available in appropriations Acts

18 for fiscal year 1995 for procurement and modernization

19 for the National Oceanic and Atmospheric Administration,

20 there are rescinded so much as exceed the amount avail21 able for those purposes for fiscal year 1994.
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1 SEC. 5404. RESCISSION OF FUNDS AVAILABLE FOR NA2 TIONAL OCEANIC AND ATMOSPHERIC ADMIN3 ISTRATION CONSTRUCTION.

4 Of the funds made available in appropriations Acts

5 for fiscal year 1995 for construction for the National Oce6 anic and Atmospheric Administration, there are rescinded

7 so much as exceed the amount available for that purpose

8 for fiscal year 1994.

9 Subtitle F—Corps of Engineers

10 Reform

11 SEC. 5501. REORGANIZATION OF CORPS OF ENGINEERS.

12 The Secretary of the Army shall reorganize the Corps

13 of Engineers by reorganizing the headquarters offices, re14 ducing the number of division offices from 11 to not more

15 than 6, and restructuring the district functions so as to

16 increase the efficiency of the Corps of Engineers and re17 duce staff and costs, to achieve at least $50,000,000 in

18 net annual savings by fiscal year 1998.

19 SEC. 5502. OBLIGATION LIMITATION FOR CORPS OF ENGI20 NEERS CONSTRUCTION.

21 The total of obligations incurred in fiscal year 1996

22 for expenses of the Corps of Engineers described under

23 the heading ‘‘Construction, General’’ in title I of the En24 ergy and Water Development Appropriations Act, 1995

25 (Public Law 103–316; 108 Stat. 1709–1710) may not ex26 ceed $959,000,000.
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1 SEC. 5503. OBLIGATION LIMITATION FOR CORPS OF ENGI2 NEERS OPERATION AND MAINTENANCE.

3 The total of obligations incurred in fiscal year 1996

4 for expenses of the Corps of Engineers described under

5 the heading ‘‘Operations and Maintenance, General’’ in

6 title I of the Energy and Water Development Appropria7 tions Act, 1995 (Public Law 103–316; 108 Stat. 1709–

8 1710) may not exceed $1,611,600,000.

9 SEC. 5504. OBLIGATION LIMITATION FOR CORPS OF ENGI10 NEERS GENERAL INVESTIGATIONS.

11 The total of obligations incurred in fiscal year 1996

12 for expenses of the Corps of Engineers described under

13 the heading ‘‘General Investigations’’ in title I of the En14 ergy and Water Development Appropriations Act, 1995

15 (Public Law 103–316; 108 Stat. 1707) may not exceed

16 $148,000,000.

17 TITLE VI—AGRICULTURE

18 Subtitle A—Agriculture Research

19 and Extension

20 SEC. 6001. CONSOLIDATION OF AGRICULTURAL RESEARCH

21 SERVICE, COOPERATIVE STATE RESEARCH

22 SERVICE, AND EXTENSION SERVICE.

23 (a) CONSOLIDATION REQUIRED.—The Secretary of

24 Agriculture shall consolidate the agricultural research

25 agencies of the Department of Agriculture specified in

26 subsection (b) for the purpose of reducing the number of
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1 personnel in these agencies and eliminating duplicative

2 overhead expenses in these agencies. In accomplishing this

3 consolidation, the Secretary shall pursue the objective of

4 reducing the annual administrative expenses of the con5 solidated agricultural research agency by an amount equal

6 to at least 50 percent of the administrative expenses of

7 these agencies in fiscal year 1995.

8 (b) AGENCIES SUBJECT TO CONSOLIDATION.—Sub9 section (a) shall apply with respect to the Agricultural Re10 search Service, the Cooperative State Research Service,

11 and the Extension Service of the Department of Agri12 culture (including personnel and field, regional, and na13 tional offices of these agencies).

14 SEC. 6002. TERMINATION OF COOPERATIVE AGRICUL15 TURAL EXTENSION WORK IN DISTRICT OF

16 COLUMBIA.

17 (a) EXTENSION WORK TERMINATION.—Section 208

18 of the District of Columbia Public Postsecondary Edu19 cation Reorganization Act (Public Law 93–471; 88 Stat.

20 1428; Sec. 31–1518, D.C. Code) is amended by striking

21 subsections (c) and (d) relating to the authorization of ap22 propriations of funds for the provision of cooperative agri23 cultural extension work in District of Columbia.

24 (b) CONFORMING AMENDMENT.—Section 3 of the

25 Act of May 8, 1914 (commonly known as the Smith-Lever
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1 Act; 7 U.S.C. 343), is amended by adding at the end the

2 following new subsection:

3 ‘‘(g) The District of Columbia shall not be eligible

4 to receive any sums appropriated under this section.’’.

5 SEC. 6003. RURAL TECHNOLOGY GRANTS.

6 Section 310B of the Consolidated Farm and Rural

7 Development Act (7 U.S.C. 1932) is amended by striking

8 subsections (f), (g), and (h) relating to the provision of

9 grants to nonprofit institutions for the purpose of enabling

10 such institutions to establish and operate centers for rural

11 technology or cooperative development.

12 SEC. 6004. CAP ON AUTHORIZATION OF APPROPRIATIONS

13 FOR AGRICULTURAL TELECOMMUNICATIONS

14 PROGRAM.

15 Section 1673(h) of the Food, Agriculture, Conserva16 tion, and Trade Act of 1990 (7 U.S.C. 5926) is amended

17 by striking ‘‘$12,000,000’’ and inserting ‘‘$1,037,850’’.

18 SEC. 6005. CAP ON AUTHORIZATION OF APPROPRIATIONS

19 FOR RENEWABLE RESOURCES EXTENSION

20 PROGRAM.

21 Section 6 of the Renewable Resources Extension Act

22 of 1978 (16 U.S.C. 1675) is amended by striking the first

23 sentence and inserting the following: ‘‘There are author24 ized to be appropriated to implement this Act $2,839,850

25 for each of the fiscal years 1996 through 2000.’’.
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1 Subtitle B—Agricultural Trade

2 SEC. 6101. REDUCTION OF SPENDING FOR EXPORT MAR3 KETING AND INTERNATIONAL ACTIVITIES.

4 Notwithstanding any other provision of law, the co5 operator market development program of the Foreign Ag6 ricultural Service shall be discontinued. The Secretary of

7 Agriculture may provide for the orderly phase out of this

8 program.

9 SEC. 6102. ELIMINATION OF EXPORT ENHANCEMENT PRO10 GRAM.

11 (a) REPEAL.—Title III of the Agricultural Trade Act

12 of 1978 (7 U.S.C. 5651 et seq.) is repealed.

13 (b) EFFECT OF REPEAL ON EXISTING AGREE14 MENTS.—The repeal by subsection (a) of the export en15 hancement program under title III of the Agricultural

16 Trade Act of 1978 shall not affect the validity or contin17 ued operation of an agreement entered into before the date

18 of the enactment of this Act under such title.

19 SEC. 6103. REDUCTION OF LOAN GUARANTEE PROGRAM.

20 Subparagraph (A) of section 211(b)(1) of The Agri21 cultural Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is

22 amended to read as follows:

23 ‘‘(A) MAXIMUM AMOUNTS.—The Com24 modity Credit Corporation shall make

25 available for each of the fiscal years 1994
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1 through 1995 not more than

2 $3,600,000,000 in credit guarantees under

3 section 202(a).’’.

4 SEC. 6104. ELIMINATION OF MARKET PROMOTION PRO5 GRAM.

6 (a) REPEAL.—Section 203 of the Agricultural Trade

7 Act of 1978 (7 U.S.C. 5623) is repealed.

8 (b) CONFORMING AMENDMENTS.—The Agricultural

9 Trade Act of 1978 is amended—

10 (1) in section 211 (7 U.S.C. 5641), by striking

11 subsection (c); and

12 (2) in section 402(a)(1) (7 U.S.C. 5662(a)(1)),

13 by striking ‘‘203,’’.

14 (c) EFFECT OF REPEAL ON EXISTING AGREE15 MENTS.—The repeal by subsection (a) of the market pro16 motion program established pursuant to section 203 of the

17 Agricultural Trade Act of 1978 shall not affect the validity

18 or continued operation of an agreement entered into be19 fore the date of the enactment of this Act to provide as20 sistance under such section.
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1 Subtitle C—Department of

2 Agriculture Overhead Reduction

3 SEC. 6201. REDUCTION IN OVERHEAD EXPENSES OF DE4 PARTMENT OF AGRICULTURE.

5 (a) IN GENERAL.—The amount obligated by the De6 partment of Agriculture during fiscal year 1996 for over7 head expenses shall not exceed an amount sufficient to re8 duce outlays for such expenses during such fiscal year (as

9 compared to such outlays during fiscal year 1995) by

10 $400,000,000.

11 (b) OVERHEAD EXPENSES.—For purposes of this

12 section, the term ‘‘overhead expenses’’ means expenses

13 within the following object classifications established by

14 the Director of the Office of Management and Budget:

15 (1) 21.0 (travel and transportation of persons).

16 (2) 22.0 (transportation of things).

17 (3) 23.1 (rental payments to GSA).

18 (4) 23.3 (communications, utilities, and mis19 cellaneous charges).

20 (5) 24.0 (printing and reproduction).

21 (6) 25.1 (consulting services).

22 (7) 25.2 (other services).

23 (8) 25.5 (research and development contracts).

24 (9) 26.0 (supplies and materials).

25 (10) 31 (equipment).
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1 Subtitle D—Loan Reform

2 SEC. 6301. TERMINATION OF GRANT PROGRAM TO ASSIST

3 STATE MEDIATION PROGRAMS.

4 (a) TERMINATION.—Subtitle A of title V of the Agri5 cultural Credit Act of 1987 (7 U.S.C. 5101–5106) relating

6 to matching grants for State mediation programs is re7 pealed.

8 (b) EFFECT OF TERMINATION.—The amendment

9 made by subsection (a) shall not affect any grant made

10 under section 502 of the Agricultural Credit Act of 1987

11 (7 U.S.C. 5102) before the date of the enactment of this

12 Act, or any conditions or requirements in connection with

13 the use of such a grant imposed before such date.

14 (c) CONFORMING AMENDMENT.—The table of con15 tents in section 1(b) of the Agricultural Credit Act of 1987

16 (Public Law 100–233; 101 Stat. 1568) is amended by

17 striking the items related to subtitle A of title V of such

18 Act.
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1 Subtitle F—Crop Commodity

2 Reform

3 SEC. 6401. ELIMINATION OF PRICE SUPPORT PROGRAMS

4 FOR AGRICULTURAL COMMODITIES AND RE5 LATED MARKETING QUOTAS.

6 (a) ELIMINATION OF PRICE SUPPORT PROGRAMS.—

7 (1) Except as provided in paragraph (2), the Agricultural

8 Act of 1949 (7 U.S.C. 1421 et seq.) is repealed.

9 (2) Paragraph (1) shall not apply to the following

10 sections of the Agricultural Act of 1949:

11 (A) The first section (7 U.S.C. 1421 note), con12 taining the short title of the Act.

13 (B) Section 204 (7 U.S.C. 1446e), relating to

14 the milk price support program.

15 (C) Section 404 (7 U.S.C. 1424), relating to

16 utilization of services and facilities of Commodity

17 Credit Corporation.

18 (D) Section 405 (7 U.S.C. 1425), relating to

19 personal liability of producers for deficiencies.

20 (E) Section 407 (7 U.S.C. 1427), relating to

21 Commodity Credit Corporation sales price restric22 tions.

23 (F) Section 407A (7 U.S.C. 1427–1), relating

24 to quality requirements for Commodity Credit Cor25 poration owned grain.
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1 (G) Section 412 (7 U.S.C. 1429), relating to

2 determinations by the Secretary of Agriculture.

3 (H) Section 421 (7 U.S.C. 1431), relating to

4 penalties for misuse of feed intended to relieve dis5 tress or preserve foundation herds.

6 (I) Section 422 (7 U.S.C. 1431a), relating to

7 forgiveness of violations.

8 (J) Title VI (7 U.S.C. 1471–1471j), relating to

9 emergency livestock feed assistance.

10 (b) ELIMINATION OF MARKETING QUOTAS.—(1) Ex11 cept as provided in paragraph (2), title III of the Agricul12 tural Adjustment Act of 1938 (7 U.S.C. 1301 et seq.) is

13 repealed.

14 (2) Paragraph (1) shall not apply to subtitle F of

15 such title relating to miscellaneous provisions and author16 ization of appropriations.

17 (c) CONFORMING AMENDMENTS REGARDING OTHER

18 COMMODITIES.—(1) Subtitle E of title XI of the Food,

19 Agriculture, Conservation, and Trade Act of 1990 (Public

20 Law 101–624; 7 U.S.C. 1421 note), relating to an options

21 pilot program, is repealed.

22 (2) Section 403 of the Food Security Act of 1985

23 (7 U.S.C. 1444e–1), relating to price support for corn si24 lage, is repealed.
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1 (d) SAVINGS PROVISION.—A repeal made by this sec2 tion shall not affect the liability of any person under any

3 provision of law as in effect before the date of the enact4 ment of this Act.

5 SEC. 6402. ELIMINATING FEDERAL SUPPORT FOR HONEY.

6 (a) IN GENERAL.—Subsection (a) of section 207 of

7 the Agricultural Act of 1949 (7 U.S.C. 1446h) is amended

8 to read as follows:

9 ‘‘(a) PRICE SUPPORT.—

10 ‘‘(1) IN GENERAL.—For each of the 1991

11 through 1995 crops of honey, the price of honey

12 shall be supported through loans, purchases, or

13 other operations, except that for the 1995 crops, the

14 price of honey shall be supported through recourse

15 loans.

16 ‘‘(2) RATE OF SUPPORT FOR CROP YEARS BE17 FORE 1994.—For the 1991 through 1993 crop years,

18 the rate of support shall be not less than 53.8 cents

19 per pound.

20 ‘‘(3) RATE OF SUPPORT FOR CROP YEARS

21 AFTER 1994.—For the 1995 crop year, the Secretary

22 shall provide recourse loans to producers at such a

23 rate that minimizes costs and forfeitures, except that

24 such rate shall not be less than 44 cents a pound.

25 Section 407 of this Act shall not apply to honey for-
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1 feited to the Commodity Credit Corporation under

2 loans made under this paragraph.

3 ‘‘(4) EFFECT OF FAILURE TO REPAY.—A pro4 ducer who fails to repay a loan made under para5 graph (3) by the end of the crop year following the

6 crop year for which such loan was made shall be in7 eligible for a loan under this section for subsequent

8 crop years, except that the Secretary may waive this

9 provision in any case where in which the Secretary

10 determines that the failure to repay the loan was

11 due to hardship conditions or circumstances beyond

12 the control of the producer.’’.

13 (b) MARKETING LOAN PROVISIONS.—Subsection (b)

14 of such section is amended by striking ‘‘for a crop’’ and

15 inserting ‘‘for the 1991 through 1993 crops’’.

16 (c) LOAN DEFICIENCY PAYMENTS.—Subsection (c)

17 of such section is amended by striking ‘‘1998’’ and insert18 ing ‘‘1994’’.

19 (d) PAYMENT LIMITATIONS.—Subsection (e) of such

20 section is amended—

21 (1) by striking subparagraphs (E) through (G);

22 (2) by inserting ‘‘and’’ after the semicolon at

23 the end of subparagraph (C); and

24 (3) by striking the semicolon at the end of sub25 paragraph (D) and inserting a period.
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1 (e) TERMINATION.—Subsection (j) of such section is

2 amended by striking ‘‘1998’’ and inserting ‘‘1995’’.

3 (f) CONFORMING AMENDMENTS.—(1) Section 405(a)

4 of the Agricultural Act of 1949 (7 U.S.C. 1425(a)) is

5 amended by striking in the first sentence ‘‘section 405A’’

6 and inserting ‘‘sections 207 and 405A’’.

7 (2) Section 405A(a) of the Agricultural Act of 1949

8 (7 U.S.C. 1425a(a)) is amended by striking ‘‘in each of

9 the 1994’’ and all that follows and inserting ‘‘in the 1994

10 crop year.’’.

11 (g) TRANSITION.—A provision of this section shall

12 not affect the liability of any person under any provision

13 of law as in effect before the date of the enactment of

14 this Act.

15 TITLE VII—COMMERCE AND

16 HOUSING CREDIT

17 Subtitle A—Small Business

18 Administration Reform

19 CHAPTER 1—REORGANIZATION OF SMALL

20 BUSINESS FUNCTIONS

21 SEC. 7001. TERMINATION OF SMALL BUSINESS ADMINIS22 TRATION.

23 The Small Business Administration shall terminate

24 on December 31, 1995.
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1 SEC. 7002. ESTABLISHMENT OF OFFICE OF SMALL BUSI2 NESS ADVOCACY IN EXECUTIVE OFFICE OF

3 THE PRESIDENT.

4 (a) ESTABLISHMENT.—There is established in the

5 Executive Office of the President an Office of Small Busi6 ness Advocacy.

7 (b) DIRECTOR.—The Office shall be headed by a Di8 rector who shall be appointed by the President, by and

9 with the advice and consent of the Senate, and who shall

10 be compensated at the rate provided for level IV of the

11 Executive Schedule in section 5315 of title 5, United

12 States Code.

13 (c) FUNCTIONS OF THE DIRECTOR.—The Director is

14 authorized to carry out any of the functions assigned to

15 the Chief Counsel of Advocacy of the Small Business Ad16 ministration under the Small Business Act, as in effect

17 on the day before the effective date of this subtitle.

18 SEC. 7003. CONFORMING AMENDMENTS TO TITLE 5, UNITED

19 STATES CODE.

20 (a) SECTION 5314.—Section 5314 of title 5, United

21 States Code, is amended by striking ‘‘Administrator of the

22 Small Business Administration.’’.

23 (b) SECTION 5315.—Section 5315 of title 5, United

24 States Code, is amended—

25 (1) by striking ‘‘Deputy Administrator of the

26 Small Business Administration.’’;
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1 (2) by striking ‘‘Chief Counsel for Advocacy,

2 Small Business Administration.’’ and inserting ‘‘Di3 rector of the Office of Small Business Advocacy.’’;

4 and

5 (3) by striking ‘‘Inspector General, Small Busi6 ness Administration.’’.

7 (c) SECTION 5316.—Section 5316 of title 5, United

8 States Code, is amended by striking ‘‘Associate Adminis9 trators of the Small Business Administration (4).’’.

10 CHAPTER 2—REPEALS

11 SEC. 7010. REPEAL OF SMALL BUSINESS ACT AND SMALL

12 BUSINESS INVESTMENT ACT OF 1958.

13 Except as otherwise provided by this subtitle, the

14 Small Business Act and the Small Business Investment

15 Act of 1958 are repealed effective September 30, 1995.

16 SEC. 7011. CONTINUED EFFECTIVENESS OF CERTAIN FUNC17 TIONS.

18 Notwithstanding section 7010 of this Act, the follow19 ing provisions of the Small Business Act shall remain in

20 effect after September 30, 1995:

21 (1) Section 3(a) (relating to the definition of

22 ‘‘small business concern’’).

23 (2) Section 4(b)(2) (relating to maintenance of

24 a small business economic database).
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1 (3) Section 15 (relating to the award of Federal

2 contracts to small business concerns).

3 SEC. 7012. CONTINUED APPLICABILITY OF CERTAIN PROVI4 SIONS.

5 Notwithstanding section 7010 of this Act, the follow6 ing provisions of the Small Business Act shall remain in

7 effect after September 30, 1995, insofar as such provi8 sions apply to the functions referred to in section 7011

9 of this Act:

10 (1) Section 5(b) (relating to general authorities

11 to carry out functions).

12 (2) Section 16 (relating to penalties for prohib13 ited acts).

14 CHAPTER 3—TRANSFERS

15 SEC. 7020. SIZE STANDARDS FOR SMALL BUSINESS CON16 CERNS; GOVERNMENT PROCUREMENT PRO17 GRAMS.

18 There are transferred to the Director of the Office

19 of Management of Budget all of the functions, powers, and

20 duties vested in or delegated to the Administrator of the

21 Small Business Administration under sections 3(a) and 15

22 of the Small Business Act.
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1 SEC. 7021. MAINTENANCE OF NATIONAL SMALL BUSINESS

2 ECONOMIC INDICES.

3 There are transferred to the Director of the Office

4 of Small Business Advocacy all of the functions, powers,

5 and duties vested in or delegated to the Administrator of

6 the Small Business Administration under section 4(b)(2)

7 of the Small Business Act.

8 SEC. 7022. TRANSFER OF FINANCIAL OBLIGATIONS OWNED

9 BY SMALL BUSINESS ADMINISTRATION.

10 (a) TRANSFERS TO SECRETARY OF THE TREAS11 URY.—There are transferred to the Secretary of the

12 Treasury the loans, notes, bonds, debentures, securities,

13 and other financial obligations owned by the Small Busi14 ness Administration, together with all assets or other

15 rights (including security interests) incident thereto, and

16 all liabilities related thereto, and there are assigned to the

17 Secretary the functions, powers, and abilities vested in or

18 delegated to the Small Business Administration to man19 age, service, collect, sell, dispose of, or otherwise realize

20 proceeds on obligations owed to the Small Business Ad21 ministration under authority of the Small Business Act

22 and the Small Business Investment Act of 1958 (including

23 those assets purchased from the Federal Financing Bank

24 pursuant to subsection (e) of this section).

25 (b) LEGAL RIGHTS, OBLIGATIONS, RESPONSIBIL26 ITIES, AND LIABILITIES.—The Secretary of the Treasury
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1 shall succeed to all rights and obligations of the Small

2 Business Administration with respect to any and all legal

3 rights, obligations, responsibilities, and liabilities arising

4 out of the obligations described in subsections (a) and (e)

5 of this section, including any outstanding guarantee of the

6 Small Business Administration and any of its defenses

7 against a claim under such guarantee, and shall have the

8 same legal rights, obligations, responsibilities, and liabil9 ities as the Small Business Administration had with re10 spect to such obligations, and the regulation of brokers

11 and dealers in such obligations.

12 (c) DEPOSIT OF AMOUNTS RECEIVED FROM TRANS13 FERRED ASSETS.—All amounts received by the Secretary

14 of the Treasury with respect to any asset transferred to

15 the Secretary pursuant to subsections (a) or (e) of this

16 section shall be deposited in the Treasury as miscellaneous

17 receipts.

18 (d) DISPOSITION OF ASSETS.—

19 (1) IN GENERAL.—The Secretary of the Treas20 ury is authorized to dispose of any loan, debenture,

21 or other asset acquired by the Secretary pursuant to

22 subsections (a) and (e) of this section (including ob23 ligations formerly guaranteed pursuant to the Small

24 Business Act or the Small Business Investment Act

25 of 1958 that will be or have been acquired by the
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1 Secretary) in the way, in amounts, at prices (for

2 cash, obligations, property, or combination of cash,

3 obligations or property), and on such conditions as

4 the Secretary considers advisable and in the public

5 interest.

6 (2) LIMITATION ON APPLICABILITY OF CERTAIN

7 LAWS.—Any disposition by the Secretary of the

8 Treasury of a financial asset acquired by the Sec9 retary under this subsection, including a disposition

10 through sale of the Federal Government’s interest in

11 an asset or in a pool of assets, shall not be subject

12 to the provisions of the Federal Property and Ad13 ministrative Services Act of 1949 or the provisions

14 of any Federal or State securities law.

15 (3) PROHIBITION ON GUARANTEES.—Any dis16 position of an asset under this subsection shall be

17 without any guarantee of the United States or any

18 agency or instrumentality thereof.

19 (4) TRANSFER OF INFORMATION.—Notwith20 standing any other provision of law, including the

21 Privacy Act of 1974, the Secretary may transfer to

22 a prospective purchaser or transferee of an asset

23 under this subsection such information as may be in24 cident to the disposition of the asset.
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1 (5) LIMITATION ON APPLICABILITY OF CERTAIN

2 FILING REQUIREMENTS.—Notwithstanding any

3 State or local law or regulation to the contrary, no

4 filing or other action shall be required in order to

5 continue the perfected status of any security interest

6 transferred to the Secretary of the Treasury which

7 was held, on the day before the effective date of this

8 Act, by the Small Business Administration or any

9 representative, transferee, or assignee thereof.

10 (6) CONTINUED APPLICABILITY OF CERTAIN

11 LAWS.—Sections 5(b) and (e), 7(c)(1) and (2), 16,

12 and 17 of the Small Business Act shall remain in ef13 fect with respect to the assets and guarantees trans14 ferred to the Secretary of the Treasury by this sub15 title as long as the Secretary shall retain any such

16 asset or guarantee.

17 (e) OBLIGATIONS HELD BY FEDERAL FINANCING

18 BANK.—The Secretary of the Treasury is authorized and

19 directed, subject to funds being specifically appropriated

20 for such purpose, to purchase from the Federal Financing

21 Bank all notes, bonds, debentures, or other obligations

22 held by the Federal Financing Bank that were, on the day

23 before the effective date of this subtitle, guaranteed or

24 otherwise backed by the Small Business Administration.

25 Such purchases are to be made at prices determined by
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1 the Federal Financing Bank as if the obligations were

2 repurchased by the respective obligors consistent with the

3 terms of such obligations or such other agreements be4 tween the Small Business Administration and the Federal

5 Financing Bank as are in effect on the day before the ef6 fective date of this subtitle.

7 (f) REGULATORY AUTHORITIES.—There are trans8 ferred to the Secretary of the Treasury the regulatory au9 thorities with respect to small business investment compa10 nies and minority enterprise small business investment

11 companies conferred by the Small Business Investment

12 Act of 1958; except that such regulatory authorities shall

13 expire on—

14 (1) for each loan, debenture, or equity security

15 purchased or guaranteed by the Small Business Ad16 ministration, the date such loan or debenture is dis17 posed of by the Department of the Treasury; or

18 (2) for each small business investment company

19 or minority enterprise small business investment

20 company whose loans, debentures, or equity securi21 ties were purchased or guaranteed by the Small

22 Business Administration, the date on which the last

23 such loan, debenture or equity security of such com24 pany is disposed of by the Secretary of the Treasury.
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1 CHAPTER 4—GENERAL ADMINISTRATIVE

2 PROVISIONS

3 SEC. 7030. TRANSFER OF AUTHORITIES.

4 To the extent necessary or appropriate, and consist5 ent with the provisions of this subtitle, in order to perform

6 a function transferred by this subtitle, the head of a de7 partment or agency may exercise any authority or part

8 thereof which was provided by law to the Small Business

9 Administration or the Administrator of the Small Busi10 ness Administration.

11 SEC. 7031. ORGANIZATIONAL ENTITIES AND OFFICES.

12 (a) IN GENERAL.—The head of a department or

13 agency is authorized to locate among the officers of the

14 department or agency the functions transferred by this

15 subtitle to the department or agency, and to establish,

16 consolidate, alter, or discontinue such organizational enti17 ties or offices within the department or agency as may

18 be necessary or appropriate.

19 (b) TREATMENT DURING TRANSITION.—In accord20 ance with section 7040 of this Act, and regulations issued

21 thereunder, and until such time as the consolidation and

22 termination of the transferred functions is completed, the

23 head of a department or agency shall treat the organiza24 tional entities and functions transferred by this subtitle
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1 to their respective departments, as if they remained a part

2 of the Small Business Administration.

3 SEC. 7032. DELEGATION OF FUNCTIONS.

4 Except where otherwise expressly provided for by law,

5 the head of a department or agency may delegate any of

6 the functions now vested in a position transferred pursu7 ant to this subtitle that relate to such a position to any

8 of the officers and employees of the department or agency,

9 and may authorize successive redelegation of those func10 tions, as appropriate.

11 SEC. 7033. RULES AND REGULATIONS.

12 The head of a department or agency is authorized

13 to issue such rules and regulations as may be necessary

14 or appropriate to carry out the functions, powers, and du15 ties vested or transferred by this subtitle.

16 SEC. 7034. TRANSFER OF FUND ACCOUNTS.

17 Any appropriations or fund accounts established to

18 carry out the purposes of this subtitle shall be deemed to

19 be successor accounts to those that existed in the Small

20 Business Administration prior to the date of the enact21 ment of this subtitle, and the balances of those prior ac22 counts may be transferred and merged with any of the

23 successor accounts so established.
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1 CHAPTER 5—TRANSITIONAL, SAVINGS,

2 AND CONFORMING PROVISIONS

3 SEC. 7040. TRANSFERS.

4 So much of the personnel (including Senior Executive

5 Service and GS–16, GS–17, and GS–18 positions), posi6 tions, assets, liabilities, contracts, property, records, and

7 unexpended balance of appropriations, authorizations, al8 locations, and other funds employed, held, used, arising

9 from, available to or to be made available in connection

10 with any functions or authority transferred by this sub11 title, are transferred to the head of the appropriate agen12 cy, except that no such unexpended balances transferred

13 shall be used for purposes other than those for which the

14 appropriation was originally made.

15 SEC. 7041. DIRECTOR OF OFFICE OF MANAGEMENT AND

16 BUDGET.

17 The Director of the Office of Management and Budg18 et, in consultation with the Administrator of the Small

19 Business Administration, the Secretary of the Treasury,

20 and other officials as appropriate, shall make such deter21 minations as may be necessary with regard to the func22 tions transferred by this subtitle, assets, liabilities, con23 tracts, property, records, and unexpended balances of ap24 propriations, authorizations, allocations, and other funds

25 held, used, arising from, available to or to be made avail-
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1 able in connection with the functions transferred by this

2 subtitle, that the Director considers necessary to accom3 plish the purposes of this subtitle.

4 SEC. 7042. SAVINGS PROVISIONS.

5 (a) EXISTING RULES, REGULATIONS, AND OR6 DERS.—All orders, determinations, rules, regulations, per7 mits, contracts, certificates, licenses, and privileges—

8 (1) that have been issued, made, granted, or al9 lowed to become effective by the President, any Fed10 eral department or agency, or official thereof, or by

11 a court of competent jurisdiction, in the performance

12 of functions which are transferred by this subtitle;

13 and

14 (2) that are in effect on September 30, 1995,

15 shall continue in effect according to their terms until

16 modified, terminated, superseded, set aside, or re17 voked in accordance with law by the head of the de18 partment or agency to which such function is trans19 ferred, or other authorized officials, a court of com20 petent jurisdiction, or by operation of law.

21 (b) ADMINISTRATIVE PROCEEDINGS.—

22 (1) PENDING PROCEEDINGS NOT AFFECTED.—

23 The provisions of this subtitle shall not affect any

24 proceedings or any application for any license, per25 mit, certificate, or financial assistance pending on
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1 the effective date of this subtitle; but such proceed2 ings and applications, to the extent that they relate

3 to functions so transferred, shall be continued.

4 (2) EFFECT OF ORDERS.—Orders shall be is5 sued in such a proceeding, appeals shall be taken

6 therefrom, and payments shall be made under such

7 orders, as if this subtitle had not been enacted, and

8 orders issued in such a proceeding shall continue in

9 effect until modified, terminated, superseded, or re10 voked by a duly authorized official, by a court of

11 competent jurisdiction, or by operation of law. Noth12 ing in this subsection prohibits the discontinuance or

13 modification of such a proceeding under the same

14 terms and conditions and to the same extent that

15 such a proceeding could have been discontinued or

16 modified if this subtitle had not been enacted.

17 (3) ISSUANCE OF REGULATIONS PROVIDING FOR

18 TRANSFER.—The head of a department or agency

19 may issue regulations providing for the orderly

20 transfer of such a proceeding to the department or

21 agency.

22 (c) PENDING JUDICIAL PROCEEDINGS.—Except as

23 provided in subsection (e) of this section—
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1 (1) the provisions of this subtitle do not affect

2 a suit commenced before this subtitle takes effect;

3 and

4 (2) in such a suit, proceedings shall be had, ap5 peals taken, and judgments rendered in the same

6 manner and effect as if this Act had not been en7 acted.

8 (d) CAUSES OF ACTION.—No suit, action, or other

9 proceeding commenced by or against any officer in the of10 ficer’s official capacity as an officer of any department or

11 agency, functions of which are transferred by this subtitle,

12 shall abate by reason of the enactment of this subtitle.

13 No cause of action by or against any department or agen14 cy, functions of which are transferred by this subtitle, or

15 by or against any officer thereof in the officer’s official

16 capacity shall abate by reason of the enactment of this

17 subtitle. The authority to impose sanctions and grant

18 waivers with respect to conflicts of interest occurring be19 fore the effective date of this subtitle, and the requirement

20 to maintain records relating to the consideration of con21 flicts of interest before the effective date of this subtitle,

22 do not abate by reason of the enactment of this subtitle.

23 (e) PARTIES TO A SUIT.—If, before the date on which

24 this subtitle takes effect, any department or agency, or

25 any officer thereof in the officer’s official capacity, is a
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1 party to a suit, and under this subtitle any function of

2 that department, agency, or officer is transferred to the

3 head of a department or agency, then the suit shall be

4 continued with the head of the department or agency sub5 stituted.

6 SEC. 7043. COORDINATION OF TRANSFER ACTIVITIES.

7 (a) PLANNING.—The Administrator of the Small

8 Business Administration, the Secretary of the Treasury,

9 and other officials as appropriate shall, beginning as soon

10 as practicable after the date of the enactment of this sub11 title, plan for the orderly transfer of functions and person12 nel pursuant to this subtitle.

13 (b) USE OF PERSONNEL.—With the consent of the

14 Administrator of the Small Business Administration, the

15 head of each agency to which functions are transferred

16 by this subtitle is authorized to use the services of such

17 officers, employees, and other personnel of the Small Busi18 ness Administration for such period of time as may rea19 sonably be needed to facilitate the orderly transfer of func20 tions pursuant to this subtitle.

21 SEC. 7044. REFERENCES.

22 With respect to any functions transferred by this sub23 title and exercised after the effective date of this subtitle,

24 reference in any other Federal law to any department,

25 commission, or agency or any officer or office the func-
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1 tions of which are so transferred shall be considered to

2 refer to the official to whom they were transferred.

3 SEC. 7045. TRANSITIONAL PERIOD.

4 During the period from September 30, 1995, until

5 December 31, 1995, the Small Business Administration

6 shall remain in existence, and there is authorized to be

7 appropriated such sums as may be necessary for the pur8 poses of winding up its affairs and advising the Secretary

9 of the Treasury and other appropriate officials, insofar as

10 they may request, in the exercise of the functions trans11 ferred by this subtitle. During this transitional period, the

12 Small Business Administration may not engage in any

13 program activities, either with respect to those functions

14 that are transferred to other agencies or those that are

15 terminated.

16 SEC. 7046. EFFECTIVE DATE.

17 (a) IN GENERAL.—Unless otherwise indicated, the

18 provisions of this subtitle shall take effect on September

19 30, 1995.

20 (b) EXCEPTIONS.—Notwithstanding subsection (a) of

21 this section, at any time after the date of the enactment

22 of this subtitle—

23 (1) the officers provided for in section 7002 of

24 this Act may be nominated and appointed, as pro25 vided in such section; and
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1 (2) the head of a department or agency to

2 whom functions are transferred under this subtitle

3 may issue regulations under section 7033 of this

4 Act.

5 (c) TERMINATION OF PRESIDENTIAL APPOINTEES.—

6 The positions of officers in the Small Business Adminis7 tration who were appointed by the President, by and with

8 the advice and consent of the Senate, shall terminate on

9 October 31, 1995.

10 (d) TEMPORARY APPOINTMENTS.—If any officer re11 quired by this subtitle to be appointed by and with the

12 advice and consent of the Senate has not entered office

13 on the effective date of this subtitle, the President may

14 designate any officer whose appointment was required to

15 be made by and with the advice and consent of the Senate,

16 and who was such an officer immediately before the effec17 tive date of this subtitle, to act in the office until it is

18 filled as provided in this subtitle. While so acting, such

19 an officer shall be compensated at the rate prescribed by

20 this subtitle for the office in which the officer acts.
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1 Subtitle B—Housing Credit Reform

2 SEC. 7101. ELIMINATION OF FMHA DIRECT LOANS FOR SIN3 GLE FAMILY HOMES.

4 Section 502(a) of the Housing Act of 1949 (42

5 U.S.C. 1472(a)) is amended by adding at the end the fol6 lowing new paragraph:

7 ‘‘(4) Notwithstanding any other provision of this title,

8 the Secretary may not make any direct loan under this

9 section after September 30, 1995.’’.

10 SEC. 7102. INCREASED FEES FOR FMHA SINGLE FAMILY

11 HOUSING LOAN GUARANTEES.

12 Section 502(h)(7) of the Housing Act of 1949 (42

13 U.S.C. 1472(h)) is amended by striking ‘‘1 percent’’ and

14 inserting ‘‘2 percent’’.

15 SEC. 7103. DELEGATION OF SINGLE FAMILY MORTGAGE IN16 SURING AUTHORITY TO MORTGAGEES AND

17 SECONDARY MARKET ENTITIES.

18 Title II of the National Housing Act (12 U.S.C. 1707

19 et seq.), is amended by adding at the end the following

20 new section:

21 ‘‘DELEGATION OF INSURING AUTHORITY

22 ‘‘SEC. 256. (a) AUTHORITY.—Notwithstanding any

23 other provision of this title, the function of approving for

24 insurance mortgages that involve property upon which

25 there is located a dwelling designed principally for occu-
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1 pancy by 1 to 4 families shall be carried out only by quali2 fied mortgagees and, to the extent that the Secretary en3 ters into an agreement with the Federal National Mort4 gage Association or the Federal Home Loan Mortgage

5 Corporation to carry out such function, by such Associa6 tion or Corporation. The Secretary may not carry out the

7 function of approving such mortgages for insurance.

8 ‘‘(b) QUALIFIED MORTGAGEE.—For purposes of this

9 section, the term ‘qualified mortgagee’ means a mortgagee

10 approved by the Secretary pursuant to this section as hav11 ing the capability to carry out the function of insuring

12 mortgages. In making such determination, the Secretary

13 may consider the experience of the mortgagee, the past

14 performance of the mortgagee, including the performance

15 of the mortgagee under the direct endorsement program,

16 the default rate of insured mortgages originated by the

17 mortgagee compared to the default rate of all insured

18 mortgages in comparable markets, and such other factors

19 as the Secretary determines appropriate to minimize risk

20 of loss to the insurance funds under this Act.

21 ‘‘(c) ENFORCEMENT OF INSURANCE REQUIRE22 MENTS.—

23 ‘‘(1) IN GENERAL.—If the Secretary determines

24 that a mortgage insured by a qualified mortgagee

25 pursuant to this section was not originated in ac-
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1 cordance with the requirements of this title and such

2 other requirements as may be established by the

3 Secretary to carry out this section, and the Sec4 retary pays an insurance claim with respect to the

5 mortgage within a reasonable period specified by the

6 Secretary, the Secretary may require the qualified

7 mortgagee approved under this section to indemnify

8 the Secretary for the loss.

9 ‘‘(2) FRAUD OR MISREPRESENTATION.—If

10 fraud or misrepresentation was involved in connec11 tion with the origination of a mortgage referred to

12 in paragraph (1), the Secretary may require the

13 qualified mortgagee to indemnify the Secretary for

14 the loss regardless of when an insurance claim is

15 paid.

16 ‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—

17 If a qualified mortgagee violates the requirements and

18 procedures established by the Secretary pursuant to this

19 section or the Secretary determines that other good cause

20 exists, the Secretary may terminate the mortgagee’s status

21 as a qualified mortgagee by providing notice of the termi22 nation to the mortgagee. Such a termination shall be effec23 tive upon receipt of the notice by the mortgagee or at a

24 later date specified in the notice by the Secretary. A deci25 sion by the Secretary to terminate a mortgagee’s status
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1 as a qualified mortgagee shall be final and conclusive and

2 shall not be subject to judicial review.

3 ‘‘(e) REQUIREMENTS AND PROCEDURES.—The Sec4 retary shall issue regulations establishing appropriate re5 quirements and procedures to carry out this section, in6 cluding requirements and procedures governing the indem7 nification of the Secretary by qualified mortgagees.’’.

8 Subtitle C—Abolition of Depart9 ment of Commerce and Disposi10 tion of Particular Programs,

11 Functions, and Agencies

12 CHAPTER 1—ABOLITION OF DEPARTMENT

13 OF COMMERCE

14 SEC. 7201. REESTABLISHMENT OF DEPARTMENT AS COM15 MERCE PROGRAMS RESOLUTION AGENCY.

16 (a) REESTABLISHMENT.—The Department of Com17 merce is hereby redesignated as the Commerce Programs

18 Resolution Agency, which shall be an independent agency

19 in the executive branch of the Government.

20 (b) ADMINISTRATOR.—

21 (1) IN GENERAL.—There shall be at the head

22 of the Agency an Administrator of the Agency, who

23 shall be appointed by the President, by and with the

24 advice and consent of the Senate. The Agency shall

25 be administered under the supervision and direction
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1 of the Administrator. The Administrator shall re2 ceive compensation at the rate prescribed for level II

3 of the Executive Schedule under section 5313 of title

4 5, United States Code.

5 (2) INITIAL APPOINTMENT OF ADMINIS6 TRATOR.—Notwithstanding any other provision of

7 this chapter or any other law, the President may, at

8 any time after the date of the enactment of this Act,

9 appoint an individual to serve as Administrator of

10 the Commerce Programs Resolution Agency (who

11 may be the Secretary of Commerce), as such posi12 tion is established under paragraph (1). An appoint13 ment under this paragraph may not be construed to

14 affect the position of Secretary of Commerce or the

15 authority of the Secretary before the effective date

16 specified in section 7209(a).

17 (c) DUTIES.—The Administrator shall be responsible

18 for—

19 (1) the administration and wind-up, during the

20 wind-up period, of all functions of the Administrator

21 pursuant to section 7202 and the other provisions of

22 this title;

23 (2) the administration and wind-up, during the

24 wind-up period, of any outstanding obligations of the
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1 Federal Government under any programs terminated

2 or repealed by this title; and

3 (3) taking such other actions as may be nec4 essary, before the termination date specified in sec5 tion 7106(d), to wind up any outstanding affairs of

6 the Department of Commerce.

7 SEC. 7202. FUNCTIONS.

8 Except to the extent a function is abolished or vested

9 in another official or agency by this title, the Adminis10 trator shall perform all functions that, immediately before

11 the effective date specified in section 7109(a), were func12 tions of the Department of Commerce (or any office of

13 the Department) or were authorized to be performed by

14 the Secretary of Commerce or any other officer or em15 ployee of the Department in the capacity as such officer

16 or employee.

17 SEC. 7203. DEPUTY ADMINISTRATOR.

18 The Agency shall have a Deputy Administrator, who

19 shall—

20 (1) be appointed by and report to the Adminis21 trator; and

22 (2) shall perform such functions as may be del23 egated by the Administrator.
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1 SEC. 7204. CONTINUATION OF SERVICE OF DEPARTMENT

2 OFFICERS.

3 (a) CONTINUATION OF SERVICE OF SECRETARY.—

4 The individual serving on the effective date specified in

5 section 7109(a) as the Secretary of Commerce may serve

6 and act as Administrator until the date an individual is

7 appointed under this title to the position of Administrator,

8 or until the end of the 120-day period provided for in sec9 tion 3348 of title 5, United States Code (relating to limita10 tions on the period of time a vacancy may be filled tempo11 rarily), whichever is earlier.

12 (b) CONTINUATION OF SERVICE OF OTHER OFFI13 CERS.—An individual serving on the effective date speci14 fied in section 7109(a) as an officer of the Department

15 of Commerce other than the Secretary of Commerce may

16 continue to serve and act in an equivalent capacity in the

17 Agency until the date an individual is appointed under this

18 title to the position of Administrator, or until the end of

19 the 120-day period provided for in section 3348 of title

20 5, United States Code (relating to limitations on the pe21 riod of time a vacancy may be filled temporarily) with re22 spect to that appointment, whichever is earlier.

23 (c) COMPENSATION FOR CONTINUED SERVICE.—Any

24 person—

25 (1) who serves as the Administrator under sub26 section (a), or
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1 (2) who serves under subsection (b),

2 after the effective date specified in section 7109(a) and

3 before the first appointment of a person as Administrator

4 shall continue to be compensated for so serving at the rate

5 at which such person was compensated before such effec6 tive date.

7 SEC. 7205. REORGANIZATION.

8 The Administrator may allocate or reallocate any

9 function of the Agency pursuant to this title among the

10 officers of the Agency, and may establish, consolidate,

11 alter, or discontinue in the Commerce Programs Resolu12 tion Agency any organizational entities that were entities

13 of the Department of Commerce, as the Administrator

14 considers necessary or appropriate.

15 SEC. 7206. ABOLISHMENT OF COMMERCE PROGRAMS RESO16 LUTION AGENCY.

17 (a) IN GENERAL.—Effective on the termination date

18 specified in subsection (d), the Commerce Programs Reso19 lution Agency is abolished.

20 (b) ABOLITION OF FUNCTIONS.—Except for func21 tions transferred or otherwise continued by this title, all

22 functions that, immediately before the termination date

23 specified in subsection (d), were functions of the Com24 merce Programs Resolution Agency are abolished effective

25 on that termination date.
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1 (c) PLAN FOR WINDING UP AFFAIRS.—Not later

2 than the effective date specified in section 7109(a), the

3 President shall submit to the Congress a plan for winding

4 up the affairs of the Agency in accordance with this title

5 and by not later than the termination date specified in

6 subsection (d).

7 (d) TERMINATION DATE.—The termination date

8 under this subsection is the date that is 3 years after the

9 date of the enactment of this Act.

10 SEC. 7207. GAO REPORT.

11 Not later than 180 days after the date of enactment

12 of this Act, the Comptroller General of the United States

13 shall submit to the Congress a report which shall include

14 recommendations for the most efficient means of achiev15 ing, in accordance with this title—

16 (1) the complete abolishment of the Depart17 ment of Commerce; and

18 (2) the termination or transfer or other con19 tinuation of the functions of the Department of

20 Commerce.

21 SEC. 7208. CONFORMING AMENDMENTS.

22 (a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)

23 of title 3, United States Code, is amended by striking

24 ‘‘Secretary of Commerce,’’.
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1 (b) EXECUTIVE DEPARTMENTS.—Section 101 of title

2 5, United States Code, is amended by striking the follow3 ing item:

4 ‘‘The Department of Commerce.’’.

5 (c) SECRETARY’S COMPENSATION.—Section 5312 of

6 title 5, United States Code, is amended by striking the

7 following item:

8 ‘‘Secretary of Commerce.’’.

9 (d) COMPENSATION FOR POSITIONS AT LEVEL III.—

10 Section 5314 of title 5, United States Code, is amended—

11 (1) by striking the following item:

12 ‘‘Under Secretary of Commerce, Under Sec13 retary of Commerce for Economic Affairs, Under

14 Secretary of Commerce for Export Administration

15 and Under Secretary of Commerce for Travel and

16 Tourism.’’;

17 (2) by striking the following item:

18 ‘‘Under Secretary of Commerce for Oceans and

19 Atmosphere, the incumbent of which also serves as

20 Administrator of the National Oceanic and Atmos21 pheric Administration.’’; and

22 (3) by striking the following item:

23 ‘‘Under Secretary of Commerce for Tech24 nology.’’.
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1 (e) COMPENSATION FOR POSITIONS AT LEVEL IV.—

2 Section 5315 of title 5, United States Code, is amended—

3 (1) by striking the following items:

4 ‘‘Assistant Secretaries of Commerce (11).’’;

5 (2) by striking the following item:

6 ‘‘General Counsel of the Department of Com7 merce.’’;

8 (3) by striking the following item:

9 ‘‘Associate Secretary of Commerce for Oceans

10 and Atmosphere, the incumbent of which also serves

11 as Deputy Administrator of the National Oceanic

12 and Atmospheric Administration.’’;

13 (4) by striking the following item:

14 ‘‘Director, National Institute of Standards and

15 Technology, Department of Commerce.’’;

16 (5) by striking the following item:

17 ‘‘Inspector General, Department of Com18 merce.’’;

19 (6) by striking the following item:

20 ‘‘Chief Financial Officer, Department of Com21 merce.’’; and

22 (7) by striking the following item:

23 ‘‘Director, Bureau of the Census, Department

24 of Commerce.’’.
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1 (f) COMPENSATION FOR POSITIONS AT LEVEL V.—

2 Section 5316 of title 5, United States Code, is amended—

3 (1) by striking the following item:

4 ‘‘Director, United States Travel Service, De5 partment of Commerce.’’; and

6 (2) by striking the following item:

7 ‘‘National Export Expansion Coordinator, De8 partment of Commerce.’’.

9 (g) INSPECTOR GENERAL ACT OF 1978.—The In10 spector General Act of 1978 (5 U.S.C. App.) is amend11 ed—

12 (1) in section 9(a)(1), by striking subparagraph

13 (B);

14 (2) in section 11(1), by striking ‘‘Commerce,’’;

15 and

16 (3) in section 11(2), by striking ‘‘Commerce,’’;

17 SEC. 7209. EFFECTIVE DATE.

18 (a) IN GENERAL.—Except as provided in subsection

19 (b), this chapter shall take effect on the date that is 6

20 months after the date of the enactment of this Act.

21 (b) PROVISIONS EFFECTIVE ON DATE OF ENACT22 MENT.—The following provisions of this chapter shall take

23 effect on the date of the enactment of this Act:

24 (1) Section 7231(b).

25 (2) Section 7236(c).
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1 (3) Section 7237.

2 CHAPTER 2—DISPOSITION OF PARTICU3 LAR PROGRAMS, FUNCTIONS, AND

4 AGENCIES OF DEPARTMENT OF COM5 MERCE

6 SEC. 7231. ECONOMIC DEVELOPMENT.

7 (a) TERMINATED FUNCTIONS.—The Public Works

8 and Economic Development Act of 1965 (42 U.S.C. 3121

9 et seq.) is repealed.

10 (b) TRANSFER OF FINANCIAL OBLIGATIONS OWED

11 TO THE DEPARTMENT.—There are transferred to the Sec12 retary of the Treasury the loans, notes, bonds, debentures,

13 securities, and other financial obligations owned by the

14 Department of Commerce under the Public Works and

15 Economic Development Act of 1965, together with all as16 sets or other rights (including security interests) incident

17 thereto, and all liabilities related thereto. There are as18 signed to the Secretary of the Treasury the functions,

19 powers, and abilities vested in or delegated to the Sec20 retary of Commerce or the Department of Commerce to

21 manage, service, collect, sell, dispose of, or otherwise real22 ize proceeds on obligations owed to the Department of

23 Commerce under authority of such Act with respect to any

24 loans, obligations, or guarantees made or issued by the

25 Department of Commerce pursuant to such Act.
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1 (c) AUDIT.—Not later than 18 months after the date

2 of the enactment of this Act, the Comptroller General shall

3 conduct an audit of all grants made or issued by the De4 partment of Commerce under the Public Works and Eco5 nomic Development Act of 1965 in fiscal year 1995 and

6 all loans, obligations, and guarantees and shall transmit

7 to Congress a report on the results of such audit.

8 SEC. 7232. EXPORT CONTROL FUNCTIONS.

9 (a) TRANSFER TO SECRETARY OF STATE.—

10 (1) IN GENERAL.—Except as provided in this

11 section, all functions of the Secretary of Commerce,

12 the Under Secretary of Commerce for Export Ad13 ministration, the 2 Assistant Secretaries of Com14 merce appointed under section 15(a) of the Export

15 Administration Act of 1979 (50 U.S.C. 2414(a)),

16 and the Department of Commerce, on the day before

17 the effective date specified in section 7109(a), under

18 the Export Administration Act of 1979 are trans19 ferred to the Secretary of State.

20 (2) CONSULTATION WITH USTR.—The Sec21 retary of State shall consult with the United States

22 Trade Representative with respect to licensing deci23 sions under the Export Administration Act of 1979.

24 (b) SHORT SUPPLY CONTROLS.—All functions of the

25 Secretary of Commerce, on the day before the effective
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1 date specified in section 7109(a), under section 7 of the

2 Export Administration Act of 1979 (50 U.S.C. 2406), and

3 under all other provisions of that Act to the extent that

4 such provisions apply to section 7, are transferred to the

5 President.

6 (c) ENFORCEMENT.—

7 (1) GENERAL TRANSFER.—All functions of the

8 Secretary of Commerce and the Department of Com9 merce, on the day before the effective date specified

10 in section 7109(a), under sections 11(c), 12, and 13

11 (c), (d), and (e) of the Export Administration Act of

12 1979 (50 U.S.C. App. 2410(c), 2411, and 2412 (c),

13 (d), and (e)) are transferred to the Secretary of the

14 Treasury.

15 (2) TRANSFER OF ENFORCEMENT PERSON16 NEL.—Not more than 60 United States special

17 agents of the Bureau of Export Administration of

18 the Department of Commerce who, on the day be19 fore the effective date specified in section 7109(a),

20 were assigned to perform functions under section

21 12(a) of the Export Administration Act of 1979 may

22 be transferred to the Customs Service to carry out

23 functions transferred by paragraph (1). The Direc24 tor of the Office of Management and Budget shall
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1 determine the special agents to be transferred under

2 this paragraph.

3 (d) ANTI-BOYCOTT COMPLIANCE.—All functions of

4 the Secretary of Commerce and the Department of Com5 merce, on the day before the effective date specified in

6 section 7109(a), under section 8 of the Export Adminis7 tration Act of 1979 (50 U.S.C. 2407), and under all other

8 provisions of that Act to the extent that such provisions

9 apply to section 8, are transferred to the Attorney Gen10 eral.

11 (e) TERMINATION OF OFFICE OF FOREIGN AVAIL12 ABILITY; APPOINTMENT OF INDUSTRIES BOARD.—

13 (1) TERMINATION OF OFFICE.—(A) The Office

14 of Foreign Availability established under section

15 5(f)(6) of the Export Administration Act of 1979

16 (50 U.S.C. 2404(f)(6)) is abolished.

17 (2) CONFORMING AMENDMENT.—Section 5(f)

18 of the Export Administration Act of 1979 (50

19 U.S.C. App. 2404(f)) is amended by striking para20 graph (6).

21 (3) APPOINTMENT OF INDUSTRIES BOARD.—

22 The President shall appoint an industries board,

23 composed of representatives of industries affected by

24 matters relating to foreign availability under the Ex25 port Administration Act of 1979, to advise the Sec-
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1 retary of State with respect to such matters, except

2 that no Federal funds may be made available to the

3 industries board to carry out its functions.

4 (f) BUYING POWER MAINTENANCE ACCOUNT.—The

5 authority of the Secretary of Commerce under section 108

6 of title I of Public Law 100–202 (101 Stat. 1329–7) to

7 establish a Buying Power Maintenance account is trans8 ferred to the Secretary of State for purposes of carrying

9 out functions under the Export Administration Act of

10 1979 that are transferred to the Secretary of State under

11 this section.

12 (g) TECHNICAL AND CONFORMING AMENDMENTS.—

13 (1) Section 15(a) of the Export Administration

14 Act of 1979 (50 U.S.C. 2414(a)) is repealed.

15 (2) The Office of the Under Secretary of Com16 merce for Export Administration is abolished.

17 SEC. 7233. NATIONAL SECURITY FUNCTIONS.

18 (a) TRANSFER OF FUNCTIONS.—Functions of the

19 Secretary of Commerce immediately before the effective

20 date specified in section 7109(a)—

21 (1) under section 232 of the Trade Expansion

22 Act of 1962 (19 U.S.C. 1862) are transferred to the

23 International Trade Commission;
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1 (2) under section 309 of the Defense Produc2 tion Act of 1950 (50 U.S.C. App. 2099) are trans3 ferred to the Secretary of Defense; and

4 (3) under section 722 of the Defense Produc5 tion Act of 1950 (50 U.S.C. App. 2171) are trans6 ferred to the Secretary of the Treasury.

7 (b) NATIONAL DEFENSE TECHNOLOGY AND INDUS8 TRIAL BASE COUNCIL.—Section 2502(b) of title 10,

9 United States Code, is amended by striking paragraph (3)

10 and redesignating paragraphs (4) and (5) as paragraphs

11 (3) and (4), respectively.

12 (c) APPOINTMENT OF COMMITTEES OF INDUSTRY

13 REPRESENTATIVES.—The President should appoint com14 mittees composed of representatives of appropriate indus15 tries to advise the National Security Council with respect

16 to those matters affecting industry addressed by the Sec17 retary of Commerce to the National Security Council be18 fore the effective date specified in section 7109(a).

19 SEC. 7234. INTERNATIONAL TRADE FUNCTIONS.

20 (a) TARIFF ACT OF 1930; URUGUAY ROUND AGREE21 MENTS ACT.—

22 (1) TRANSFER TO UNITED STATES TRADE REP23 RESENTATIVE.—All functions of the International

24 Trade Administration of the Department of Com25 merce, immediately before the effective date speci-
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1 fied in section 7109(a), under titles III and VII of

2 the Tariff Act of 1930, and all functions of the ad3 ministering authority or the Secretary of Commerce

4 under the Uruguay Round Agreements Act, are

5 transferred to the United States Trade Representa6 tive.

7 (2) CONFORMING AMENDMENT.—Section

8 771(1) of the Tariff Act of 1930 (19 U.S.C.

9 1677(1)) is amended by striking ‘‘Secretary of Com10 merce’’ and inserting ‘‘United States Trade Rep11 resentative’’.

12 (b) FOREIGN TRADE ZONES BOARD.—Subsection (b)

13 of the first section of the Act of June 18, 1934 (commonly

14 known as the ‘‘Foreign Trade Zones Act’’) (19 U.S.C.

15 81a(b)) is amended by striking ‘‘Secretary of Commerce,

16 who shall be chairman and executive officer of the Board,

17 the Secretary of the Treasury’’ and inserting ‘‘Secretary

18 of the Treasury, who shall be chairman and executive offi19 cer of the Board, the United States Trade Representa20 tive’’.

21 (c) UNITED STATES AND FOREIGN COMMERCIAL

22 SERVICE.—

23 (1) RENAMING AND ABOLITION OF CERTAIN

24 FUNCTIONS.—The United States and Foreign Com25 mercial Service shall, upon the effective date speci-
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1 fied in section 7109(a), be known as the ‘‘United

2 States Foreign Commercial Service’’ (hereafter in

3 this subsection referred to as the ‘‘Commercial Serv4 ice’’). All operations of the Commercial Service in

5 the United States (other than those performed at

6 the headquarters office referred to in section

7 2301(c) of the Export Enhancement Act of 1988

8 (15 U.S.C. 4721(c))) with respect to the foreign op9 erations of the Commercial Service) are abolished.

10 (2) TRANSFER TO USTR.—The Commercial

11 Service and its functions are transferred to the Unit12 ed States Trade Representative. All functions per13 formed immediately before the effective date speci14 fied in section 7109(a) by the Secretary of Com15 merce or the Department of Commerce with respect

16 to the Commercial Service are transferred to the

17 United States Trade Representative.

18 (3) DIRECTOR GENERAL.—(A) The head of the

19 Commercial Service shall, as of the effective date

20 specified in section 7109(a), be the Director General

21 of the United States Foreign Commercial Service.

22 (B) Section 5315 of title 5, United States Code,

23 is amended by striking ‘‘Assistant Secretary of Com24 merce and Director General of the United States

25 and Foreign Commercial Service’’ and inserting ‘‘Di-
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1 rector General of the United States Foreign Com2 mercial Service.’’.

3 (C) The individual serving as Assistant Sec4 retary of Commerce and Director General of the

5 United States and Foreign Commercial Service im6 mediately before the effective date specified in sec7 tion 7109(a) may serve as the Director General of

8 the United States Foreign Commercial Service on

9 and after such effective date until a successor has

10 taken office. Compensation for any service under

11 this subparagraph shall be at the rate at which the

12 individual was compensated immediately before the

13 effective date specified in section 7109(a).

14 (4) TRANSFER OF COMMERCIAL SERVICE OFFI15 CERS.—The transfer to the United States Trade

16 Representative pursuant to this section of any Com17 mercial Service Officer serving immediately before

18 the effective date specified in section 7109(a) shall

19 not cause such officer to be reduced in rank, grade,

20 or compensation.

21 (d) EXPORT PROMOTION PROGRAMS.—

22 (1) TRANSFER.—All export promotion pro23 grams (as defined in section 201(d) of the Export

24 Administration Amendments Act of 1985 (15 U.S.C.

25 4051(d))) carried out by the Secretary of Commerce
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1 or the Department of Commerce immediately before

2 the effective date specified in section 7109(a) are

3 transferred to the United States Trade Representa4 tive.

5 (2) PRIVATE FUNDING.—With respect to any

6 program transferred under paragraph (1), no funds

7 made available to the United States Trade Rep8 resentative may be used in carrying out such pro9 gram, but the United States Trade Representative

10 may require the persons to whom services are pro11 vided by the Office of the United States Trade Rep12 resentative under such program to pay for such serv13 ices.

14 (e) TRADE INFORMATION.—All functions of the Sec15 retary of Commerce under the International Investment

16 and Trade in Services Survey Act (22 U.S.C. 3101 and

17 following) are transferred to the Secretary of the Treas18 ury.

19 (f) INTERNATIONAL ECONOMIC POLICY.—All func20 tions performed by the Assistant Secretary of Commerce

21 for International Economic Policy and the Office of Inter22 national Economic Policy of the Department of Commerce

23 immediately before the effective date specified in section

24 7109(a) are abolished.
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1 (g) FUNCTIONS WITH RESPECT TO TEXTILE AGREE2 MENTS.—

3 (1) TRANSFER OF FUNCTIONS.—Notwithstand4 ing the provisions of Executive Order 11651 and

5 Executive Order 12475 (7 U.S.C. 1854 note), the

6 functions of the Committee for the Implementation

7 of Textile Agreements (hereafter in this subsection

8 referred to as ‘‘CITA’’) are transferred as follows:

9 (A) All functions related to policy formula10 tion for textile and apparel trade, including the

11 negotiation and implementation of textile and

12 apparel trade agreements, and all related activi13 ties performed by CITA immediately before the

14 effective date specified in section 7109(a), and

15 not specified in paragraphs (2) through (4), are

16 transferred to the United States Trade Rep17 resentative.

18 (B) All functions related to economic anal19 ysis of textile and apparel trade patterns, deter20 mination of serious damage, or actual threat

21 thereof, to domestic United States industry and

22 related safeguards matters, including the tran23 sitional safeguard provisions under Article 6 of

24 the Agreement on Textiles and Clothing re25 ferred to in section 101(d)(4) of the Uruguay
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1 Round Agreements Act (19 U.S.C. 3511(d)(4)),

2 and analysis of the impact of foreign tariff and

3 nontariff barriers on textile and apparel trade,

4 and all related activities performed by CITA

5 immediately before the effective date specified

6 in section 7109(a), are transferred to the Inter7 national Trade Commission.

8 (C) All functions related to the promotion

9 and foreign market expansion of United States

10 textile and apparel production are transferred

11 to the United States Foreign Commercial Serv12 ice.

13 (D) All functions related to monitoring

14 quota utilization and enforcement, and actions

15 to address the circumvention of quotas, as de16 scribed in the statement of administrative ac17 tion accompanying the Uruguay Round Agree18 ments (as defined in section 2 of the Uruguay

19 Round Agreements Act (19 U.S.C. 3501)), are

20 transferred to the Secretary of the Treasury.

21 (2) ABOLITION OF CITA.—CITA is abolished.

22 (h) FAIR TRADE IN AUTO PARTS.—All functions of

23 the Secretary of Commerce under the Fair Trade in Auto

24 Parts Act of 1988 (15 U.S.C. 4701 and following) are

25 transferred to the International Trade Commission.
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1 (i) OTHER TRADE FUNCTIONS.—

2 (1) INTERAGENCY TRADE ORGANIZATION.—The

3 President shall provide for the direct participation

4 by representatives of industry on the Interagency

5 Trade Organization established under section 242 of

6 the Trade Expansion Act of 1962 (19 U.S.C. 1872),

7 to carry out appropriate functions of the Secretary

8 of Commerce as a member of such organization be9 fore the effective date specified in section 7109(a).

10 (2) EXPORT TRADING COMPANIES.—(A) The

11 functions of the Secretary of Commerce under the

12 Export Trading Company Act of 1982 (15 U.S.C.

13 4001–4003), and the Office of Export Trade estab14 lished under section 104 of that Act, are abolished.

15 (B) The functions of the Secretary of Com16 merce under title III of the Act of October 8, 1982

17 (15 U.S.C. 4011 and following), are transferred to

18 the Secretary of the Treasury.

19 (C) CONFORMING AMENDMENTS.—(i) The Ex20 port Trading Company Act of 1982 (15 U.S.C.

21 4001–4003) is repealed.

22 (ii) The section heading for section 301 of the

23 Act of October 8, 1982 (15 U.S.C. 4011), is amend24 ed by striking ‘‘COMMERCE’’ and inserting ‘‘TREAS25 URY’’.
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1 (iii) Section 311(7) of the Act of October 8,

2 1982 (15 U.S.C. 4021), is amended by striking

3 ‘‘Commerce’’ and inserting ‘‘Treasury’’.

4 (j) APPOINTMENT OF INDUSTRIES BOARDS.—The

5 President shall appoint industries boards, composed of

6 representatives of industries in the private sector, to ad7 vise the Secretary of the Treasury and the United States

8 Trade Representative with respect to functions transferred

9 to them under this section.

10 (k) GIFTS AND BEQUESTS.—

11 (1) IN GENERAL.—The Secretary of State, the

12 Secretary of the Treasury, and the United States

13 Trade Representative are authorized to accept, hold,

14 administer, and utilize gifts and bequests of prop15 erty, both real and personal, for the purpose of aid16 ing or facilitating the performance of functions

17 transferred to them under this section and section

18 7232. Gifts and bequests of money and the proceeds

19 from sales of other property received as gifts or be20 quests shall be deposited in the United States Treas21 ury in a separate fund and shall be disbursed on

22 order of the Secretary of State, the Secretary of the

23 Treasury, or the United States Trade Representa24 tive. Property accepted pursuant to this paragraph,

25 and the proceeds thereof, shall be used as nearly as
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1 possible in accordance with the terms of the gift or

2 bequest.

3 (2) TAX TREATMENT.—For the purpose of Fed4 eral income, estate, and gift taxes, and State taxes,

5 property accepted under subsection (a) shall be con6 sidered a gift or bequest to or for use of the United

7 States.

8 (3) INVESTMENT.—The Secretary of the Treas9 ury may invest and reinvest in securities of the

10 United States or in securities guaranteed as to prin11 cipal and interest by the United States any moneys

12 contained in the fund provided for in subsection (a).

13 Income accruing from such securities, and from any

14 other property held by the Secretary of State, the

15 Secretary of the Treasury, or the United States

16 Trade Representative pursuant to subsection (a),

17 shall be deposited to the credit of the fund, and shall

18 be disbursed upon order of the Secretary of State,

19 the Secretary of the Treasury, or the United States

20 Trade Representative.

21 (l) INFORMATION SHARING.—It is the sense of the

22 Congress that any department or agency of the United

23 States that compiles information on international econom24 ics or trade make that information available to other de-
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1 partments and agencies performing functions relating to

2 international trade.

3 (m) TRADE ADJUSTMENT ASSISTANCE FOR

4 FIRMS.—Chapter 3 of title II of the Trade Act of 1974

5 (19 U.S.C. 2341 and following) and the items relating to

6 such chapter in the table of contents for that Act, are re7 pealed.

8 SEC. 7235. PATENT AND TRADEMARK OFFICE.

9 (a) TRANSFER TO DEPARTMENT OF JUSTICE.—Ef10 fective as of the date specified in section 7109(a)—

11 (1) the Patent and Trademark Office shall be

12 transferred to the Department of Justice; and

13 (2) all functions which, immediately before such

14 date, are functions of the Secretary of Commerce

15 under title 35, United States Code, or any other

16 provision of law with respect to the functions of the

17 Patent and Trademark Office, are transferred to the

18 Attorney General.

19 (b) FUNDING.—

20 (1) COSTS PAID FROM FEES.—All costs of the

21 activities of the Patent and Trademark Office shall

22 be paid from fees paid to the Office under title 35,

23 United States Code, the Act of July 5, 1946 (com24 monly known as the ‘‘Trademark Act of 1946’’) (15

25 U.S.C. 1051 and following), section 10101 of the
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1 Omnibus Budget Reconciliation Act of 1990 (35

2 U.S.C. 41 note), or other provision of law.

3 (2) FUNDS AVAILABLE WITHOUT APPROPRIA4 TION.—(A) Section 42(c) of title 35, United States

5 Code, is amended by striking ‘‘to carry out, to the

6 extent provided in appropriation Acts,’’ and insert7 ing ‘‘, without appropriation, to carry out’’.

8 (B) Section 10101(b)(2)(B) of the Omnibus

9 Budget Reconciliation Act of 1990 (35 U.S.C. 41

10 note) is amended by striking ‘‘to the extent provided

11 in appropriation Acts’’ and inserting ‘‘without ap12 propriation’’.

13 (c) ADJUSTMENT OF FEES.—Section 41(f) of title

14 31, United States Code, is amended to read as follows:

15 ‘‘(f) The Commissioner may adjust the fees estab16 lished under this section on October 1 of each year to

17 cover the estimated cost to the activities of the Office.’’.

18 (d) SERVICE OF INCUMBENTS.—Those individuals

19 serving as Commissioner of Patents and Trademarks,

20 Deputy Commissioner of Patents and Trademarks, Assist21 ant Commissioner of Patents, and Assistant Commis22 sioner of Trademarks, immediately before the effective

23 date specified in section 7109(a), may continue in such

24 office on and after such effective date until a successor

25 has taken office. Compensation for any service under this
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1 subsection shall be at the rate at which the individual was

2 compensated immediately before the effective date speci3 fied in section 7109(a).

4 (e) RULE OF CONSTRUCTION.—For purposes of title

5 III, the transfer of the Patent and Trademark Office to

6 the Department of Justice under this section shall be

7 treated as if it involved a transfer of functions from one

8 office to another.

9 (f) TECHNICAL AND CONFORMING AMENDMENTS.—

10 (1) Section 1 of title 35, United States Code,

11 is amended to read as follows:

12 ‘‘§ 1. Establishment

13 ‘‘The Patent and Trademark Office is an agency of

14 the United States within the Department of Justice, where

15 records, books, drawings, specifications, and other papers

16 and things pertaining to patents and trademark registra17 tions shall be kept and preserved, except as otherwise pro18 vided by law.’’.

19 (2) Title 35, United States Code, is amended by

20 striking ‘‘Secretary of Commerce’’ each place it ap21 pears and inserting ‘‘Attorney General’’.

22 (3) Section 3 of title 35, United States Code,

23 is amended by striking subsection (d).

24 (4) Section 5316 of title 5, United States Code,

25 is amended by striking
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1 ‘‘Commissioner of Patents, Department of

2 Commerce.’’

3 and inserting

4 ‘‘Commissioner of Patents and Trademarks.’’.

5 SEC. 7236. TECHNOLOGY ADMINISTRATION.

6 (a) TECHNOLOGY ADMINISTRATION.—

7 (1) GENERAL RULE.—Except as otherwise pro8 vided in this section, the Technology Administration

9 shall be terminated on the effective date specified in

10 section 7233(a).

11 (2) OFFICE OF TECHNOLOGY POLICY.—The Of12 fice of Technology Policy is hereby terminated.

13 (b) NATIONAL INSTITUTE OF STANDARDS AND

14 TECHNOLOGY.—

15 (1) GENERAL RULE.—Except as otherwise pro16 vided in this subsection, the National Institute of

17 Standards and Technology (in this subsection re18 ferred to as the ‘‘Institute’’) shall be transferred to

19 the National Science Foundation.

20 (2) FUNCTIONS OF DIRECTOR.—Except as oth21 erwise provided in this subsection, upon the transfer

22 under paragraph (1), the Director of the Institute

23 shall perform all functions relating to the Institute

24 that, immediately before the effective date specified

25 in section 7233(a), were functions of the Secretary
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1 of Commerce or the Under Secretary of Commerce

2 for Technology, including the administration of sec3 tion 17 of the Stevenson-Wydler Technology Innova4 tion Act of 1980.

5 (3) LABORATORIES.—(A) The laboratories of

6 the Institute shall be transferred to the Commerce

7 Programs Resolution Agency.

8 (B) The Commerce Programs Resolution Agen9 cy shall attempt to sell the property of the labora10 tories of the Institute, within 18 months after the

11 effective date specified in section 7233(a), to a pri12 vate sector entity intending to perform substantially

13 the same functions as were performed by the labora14 tories of the Institute immediately before such effec15 tive date.

16 (C) If no offer to purchase property under sub17 paragraph (B) is received within the 18-month pe18 riod described in such subparagraph, the Commerce

19 Programs Resolution Agency shall submit a report

20 to the Congress containing recommendations on the

21 appropriate disposition of the property and functions

22 of the laboratories of the Institute.

23 (c) NATIONAL TECHNICAL INFORMATION SERV24 ICE.—
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1 (1) SALE OF PROPERTY.—The Commerce Pro2 grams Resolution Agency shall attempt to sell the

3 property of the National Technical Information

4 Service, within 18 months after the effective date

5 specified in section 7233(a), to a private sector en6 tity intending to perform substantially the same

7 functions as were performed by the National Tech8 nical Information Service immediately before such

9 effective date.

10 (2) RECOMMENDATIONS.—If no offer to pur11 chase property under paragraph (1) is received with12 in the 18-month period described in such paragraph,

13 the Commerce Programs Resolution Agency shall

14 submit a report to the Congress containing rec15 ommendations on the appropriate disposition of the

16 property and functions of the National Technical In17 formation Service.

18 (3) FUNDING.—No Federal funds may be ap19 propriated for the National Technical Information

20 Service for any fiscal year after fiscal year 1995.

21 (d) AMENDMENTS.—

22 (1) NATIONAL INSTITUTE OF STANDARDS AND

23 TECHNOLOGY ACT.—The National Institute of

24 Standards and Technology Act (15 U.S.C. 271 et

25 seq.) is amended—
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1 (A) in section 2(b), by striking paragraph

2 (1) and redesignating paragraphs (2) through

3 (11) as paragraphs (1) through (10), respec4 tively;

5 (B) in section 2(d), by striking ‘‘, including

6 the programs established under sections 25, 26,

7 and 28 of this Act’’;

8 (C) in section 10, by striking ‘‘Advanced’’

9 in both the section heading and subsection (a),

10 and inserting in lieu thereof ‘‘Standards and’’;

11 and

12 (D) by striking sections 24, 25, 26, and

13 28.

14 (2) STEVENSON-WYDLER TECHNOLOGY INNOVA15 TION ACT OF 1980.—The Stevenson-Wydler Tech16 nology Innovation Act of 1980 (15 U.S.C. 3701 et

17 seq.) is amended—

18 (A) in section 3, by striking paragraph (2)

19 and redesignating paragraphs (3) through (5)

20 as paragraphs (2) through (4), respectively;

21 (B) in section 4, by striking paragraphs

22 (1), (4), and (13) and redesignating paragraphs

23 (2), (3), (5), (6), (7), (8), (9), (10), (11), and

24 (12) as paragraphs (1) through (10), respec25 tively;
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1 (C) by striking sections 5, 6, 7, 8, 9, and

2 10;

3 (D) in section 11—

4 (i) by striking ‘‘, the Federal Labora5 tory Consortium for Technology Transfer,’’

6 in subsection (c)(3);

7 (ii) by striking ‘‘and the Federal Lab8 oratory Consortium for Technology Trans9 fer’’ in subsection (d)(2);

10 (iii) by striking ‘‘, and refer such re11 quests’’ and all that follows through ‘‘avail12 able to the Service’’ in subsection (d)(3);

13 and

14 (iv) by striking subsection (e); and

15 (E) in section 17—

16 (i) by striking ‘‘Subject to paragraph

17 (2), separate’’ and inserting in lieu thereof

18 ‘‘Separate’’ in subsection (c)(1);

19 (ii) by striking paragraph (2) of sub20 section (c);

21 (iii) by redesignating paragraph (3) of

22 subsection (c) as paragraph (2); and

23 (iv) by inserting ‘‘administrative’’

24 after ‘‘funds to carry out’’ in subsection

25 (f).
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1 SEC. 7237. REORGANIZATION OF THE BUREAU OF THE

2 CENSUS.

3 (a) IN GENERAL.—Effective as of the date specified

4 in section 7233(a)—

5 (1) the Bureau of the Census shall be trans6 ferred to the Department of the Treasury; and

7 (2) all functions which, immediately before such

8 date, are functions of the Secretary of Commerce

9 under title 13, United States Code, shall be trans10 ferred to the Secretary of the Treasury.

11 (b) INTERIM SERVICE.—The individual serving as the

12 Director of the Census immediately before the reorganiza13 tion under this section takes effect may continue serving

14 in that capacity until a successor has taken office. Com15 pensation for any service under this subsection shall be

16 at the rate at which such individual was compensated im17 mediately before the effective date of the reorganization.

18 (c) SENSE OF THE CONGRESS.—It is the sense of the

19 Congress that the Bureau of the Census should—

20 (1) make appropriate use of any authority af21 forded to it by the Census Address List Improve22 ment Act of 1994 (Public Law 103–430; 108 Stat.

23 4393), and take measures to ensure the timely im24 plementation of such Act; and

25 (2) streamline census questionnaires to promote

26 savings in the collection and tabulation of data.
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1 (d) AMENDMENTS.—Effective as of the date specified

2 in section 7233(a)—

3 (1) TRANSFER OF THE BUREAU TO THE DE4 PARTMENT OF THE TREASURY.—(A) Section 2 of

5 title 13, United States Code, is amended by striking

6 ‘‘is continued as’’ through the period and inserting

7 ‘‘is an agency within, and under the jurisdiction of,

8 the Department of the Treasury.’’.

9 (B) Subsection (e) of section 12 of the Act of

10 February 14, 1903 (15 U.S.C. 1511(e)) is repealed.

11 (2) DEFINITION OF SECRETARY.—Title 13,

12 United States Code, is amended in section 1(2) by

13 striking ‘‘Secretary of Commerce’’ and inserting

14 ‘‘Secretary of the Treasury’’.

15 (3) REFERENCES IN TITLE 13, UNITED STATES

16 CODE, TO THE DEPARTMENT OF COMMERCE.—Title

17 13, United States Code, is amended in sections 4,

18 9(a), 23(b), 24(e), 44, 103, 132, 211, 213(b)(2),

19 221, 222, 223, 224, 225(a), and 241 by striking

20 ‘‘Department of Commerce’’ each place it appears

21 and inserting ‘‘Department of the Treasury’’.

22 (4) PROVISIONS RELATING TO THE SECRETARY

23 OF THE TREASURY.—(A) Section 302 of title 13,

24 United States Code, is amended by striking the last

25 sentence thereof.
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1 (B) Section 303 of title 13, United States Code,

2 and the item relating to such section in the analysis

3 for chapter 9 of such title are repealed.

4 (C) Section 304(a) of title 13, United States

5 Code, is amended—

6 (i) by striking ‘‘Secretary of the Treasury’’

7 each place it appears and inserting ‘‘Secretary’’;

8 and

9 (ii) by striking ‘‘Secretary of Commerce’’

10 and inserting ‘‘Secretary’’.

11 (D)(i) Section 401(a) of title 13, United States

12 Code, is amended by striking ‘‘Secretary of Com13 merce’’ and inserting ‘‘Secretary’’.

14 (ii) Section 8(e) of the Foreign Direct Invest15 ment and International Financial Data Improve16 ments Act of 1990 (22 U.S.C. 3144(e)) is amended

17 by striking ‘‘Secretary of Commerce’’ and inserting

18 ‘‘Secretary of the Treasury’’.

19 (iii) Section 401(a) of title 13, United States

20 Code, is amended by striking ‘‘Department of Com21 merce’’ and inserting ‘‘Federal Reserve System’’.

22 (5) COMPENSATION FOR THE POSITION OF DI23 RECTOR OF THE CENSUS.—Section 5315 of title 5,

24 United States Code, as amended by paragraph (7)

25 of section 7108(e), is further amended by inserting
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1 (in lieu of the item struck by such paragraph) the

2 following new item:

3 ‘‘Director of the Census, Department of the

4 Treasury.’’.

5 (6) CONFIDENTIALITY.—Section 9 of title 13,

6 United States Code, is amended by adding at the

7 end the following:

8 ‘‘(c)(1) Nothing in subsection (a)(3) shall be consid9 ered to permit the disclosure of any matter or information

10 to an officer or employee of the Department of the Treas11 ury who is not referred to in subchapter II if, immediately

12 before the date specified in section 7233(a) of the Depart13 ment of Commerce Dismantling Act, such disclosure (if

14 then made by an officer or employee of the Department

15 of Commerce) would have been impermissible under this

16 section (as then in effect).

17 ‘‘(2) Paragraph (1) shall not apply with respect to

18 any disclosure made to the Secretary.’’.

19 (e) RULE OF CONSTRUCTION.—For purposes of title

20 III, the reorganization of the Bureau of the Census under

21 this section shall be treated as if it involved a transfer

22 of functions from one office to another.
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1 SEC. 7238. REORGANIZATION OF THE BUREAU OF ECO2 NOMIC ANALYSIS.

3 (a) IN GENERAL.—Effective as of the date specified

4 in section 7233(a)—

5 (1) the Bureau of Economic Analysis shall be

6 transferred to the Federal Reserve System; and

7 (2) all functions which, immediately before such

8 date, are functions of the Secretary of Commerce

9 with respect to the Bureau of Economic Analysis

10 shall be transferred to the Chairman of the Board

11 of Governors of the Federal Reserve System.

12 (b) INTERIM SERVICE.—The individual serving as the

13 Director of the Bureau of Economic Analysis immediately

14 before the reorganization under this section takes effect

15 may continue serving in that capacity until a successor

16 has taken office. Compensation for any service under this

17 subsection shall be at the rate at which such individual

18 was compensated immediately before the effective date of

19 the reorganization.

20 (c) REPORTS.—Not later than 18 months after the

21 date of the enactment of this Act, the Director of the Bu22 reau of Economic Analysis shall submit to the Congress

23 a written report on—

24 (1) the availability of any private sector re25 sources that may be capable of performing any or all

26 of the functions of the Bureau of Economic Analy-
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1 sis, and the feasibility of having any such functions

2 so performed; and

3 (2) the feasibility of implementing a system

4 under which fees may be assessed by the Bureau of

5 Economic Analysis in order to defray the costs of

6 any services performed by the Bureau of Economic

7 Analysis, when such services are performed other

8 than on behalf of the Federal Government or an

9 agency or instrumentality thereof.

10 (d) RULE OF CONSTRUCTION.—For purposes of title

11 III, the reorganization of the Bureau of Economic Analy12 sis under this section shall be treated as if it involved a

13 transfer of functions from one office to another.

14 SEC. 7239. TERMINATED FUNCTIONS OF NTIA.

15 The following provisions of law are repealed:

16 (1) Subpart A of part IV of title III of the

17 Communications Act of 1934 (47 U.S.C. 390 et

18 seq.), relating to assistance for public telecommuni19 cations facilities.

20 (2) Subpart B of part IV of title III of the

21 Communications Act of 1934 (47 U.S.C. 394 et

22 seq.), relating to the Endowment for Children’s

23 Educational Television.

24 (3) Subpart C of part IV of title III of the

25 Communications Act of 1934 (47 U.S.C. 395 et
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1 seq.), relating to Telecommunications Demonstration

2 grants.

3 SEC. 7240. TRANSFER OF SPECTRUM MANAGEMENT FUNC4 TIONS.

5 There are transferred to the Chairman of the Federal

6 Communications Commission all functions of the Sec7 retary of Commerce, the Assistant Secretary of Commerce

8 for Communications and Information, and the National

9 Telecommunications and Information Administration

10 under parts A and B of the National Telecommunication

11 and Information Administration Organization Act.

12 SEC. 7241. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN13 ISTRATION.

14 (a) TERMINATION OF AUTHORITY TO MAKE FISH15 ERIES GRANTS.—No financial assistance may be provided

16 under any of the following laws, except to the extent the

17 provision of that assistance is a contractual obligation of

18 the United States on the day before the effective date of

19 this section:

20 (1) Section 2 of the Act of August 11, 1939

21 (15 U.S.C. 713c–3), popularly known as the

22 ‘‘Saltonstall-Kennedy Act’’.

23 (2) Section 1 of the Act of September 2, 1960

24 (16 U.S.C. 753a).
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1 (3) The Antarctic Marine Living Resources

2 Convention Act of 1984 (16 U.S.C. 2431 et seq.).

3 (4) The Anadromous Fish Conservation Act (16

4 U.S.C. 757a et seq.).

5 (5) Provisions of the Magnuson Fishery Con6 servation and Management Act (16 U.S.C. 1801 et

7 seq.) and the Department of Commerce Appropria8 tion Act of 1994 that authorize assistance to State

9 fishery agencies to enhance their data collection and

10 analysis systems to respond to coastwise fisheries

11 management needs.

12 (6) The Interjurisdictional Fisheries Act of

13 1986 (16 U.S.C. 4101 et seq.).

14 (7) Provisions of the Fish and Wildlife Act of

15 1956 and the Department of Commerce Appropria16 tion Act of 1994 that authorize assistance to States

17 for a cooperative State and Federal partnership to

18 provide a continuing source of fisheries statistics to

19 support fisheries management in the States’ terri20 torial waters and the United States exclusive eco21 nomic zone.

22 (8) Provisions of the Fish and Wildlife Act of

23 1956 and the Department of Commerce Appropria24 tion Act of 1994 that authorize assistance to States

25 for a cooperative program which engages State and
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1 Federal agencies in the coordinated collection, man2 agement, and dissemination of fishery-independent

3 information on marine fisheries in support of State

4 territorial waters and the United States exclusive

5 economic zone fisheries management programs.

6 (9) Provisions of the Act of May 11, 1938 (16

7 U.S.C. 756–757), popularly known as the Mitchell

8 Act, and the Department of Commerce Appropria9 tion Act of 1994 that authorize assistance to State

10 fisheries agencies in the Pacific Northwest to protect

11 and enhance salmon and steelhead resources in the

12 region.

13 (10) Provisions of the Pacific Salmon Treaty

14 Act of 1985 (16 U.S.C. 3631–3644) and the De15 partment of Commerce Appropriation Act of 1994

16 that authorize assistance to States in fulfilling re17 sponsibilities under the Pacific Salmon Treaty by

18 providing administrative, management, and applied

19 research support to the States to meet the needs of

20 the Pacific Salmon Commission and international

21 commitments under the treaty.

22 (11) Provisions of the Marine Mammal Protec23 tion Act of 1972 (16 U.S.C. 1371–1384) and the

24 Department of Commerce Appropriation Act of 1994

25 which authorize assistance to State agencies for the
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1 collection and analysis of information on marine

2 mammals that occur in the State waters and inter3 act with State managed fisheries.

4 (12) Provisions of the Pacific Salmon Treaty

5 Act of 1985 (16 U.S.C. 3631–3644) and the De6 partment of Commerce Appropriation Act of 1994

7 that—

8 (A) authorize assistance to States to assist

9 in fulfilling Federal responsibilities under the

10 Pacific Salmon Treaty by restoring Southeast

11 Alaska salmon harvests limited by the treaty

12 and by restoring salmon stocks as quickly as

13 possible; and

14 (B) help implement a 1989 ‘‘Understand15 ing between the United States and Canadian

16 Sections of the Pacific Salmon Commission

17 Concerning Joint Enhancement of

18 Transboundary River Salmon Stocks’’.

19 (b) TERMINATION OF FISHERIES TRADE PROMOTION

20 PROGRAM.—Section 211 of the Act of December 22, 1989

21 (15 U.S.C. 1511b) is repealed.

22 (c) CONFORMING AMENDMENT TO TERMINATE

23 FISHERIES PROMOTION AND DEVELOPMENT TRANSFERS

24 AND FUNDS.—Section 2(b) of the Act of August 11, 1939

25 (15 U.S.C. 713c–3), popularly known as the ‘‘Saltonstall-
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1 Kennedy Act’’, is repealed. Amounts remaining, on the ef2 fective date of this section, in the funds established under

3 that section that are not required for the provision of fi4 nancial assistance that is not otherwise terminated by this

5 section shall revert to the general fund of the Treasury.

6 (d) TERMINATION OF AUTHORITY TO GUARANTEE

7 OBLIGATIONS FOR FISHING VESSEL AND FISHING FACIL8 ITY CONSTRUCTION, ETC.—No new guarantee of an obli9 gation or commitment to guarantee an obligation under

10 title XI of the Merchant Marine Act, 1936 (46 App.

11 U.S.C. 1271 et seq.) may be made under authority that

12 was vested in the Secretary of Commerce on the day be13 fore the effective date of this section (relating to obliga14 tions for fishing vessels or fishing facilities), except to the

15 extent the making of such a guarantee was a contractual

16 obligation of the United States on the day before that ef17 fective date.

18 (e) TERMINATION OF COMPENSATION UNDER FISH19 ERMEN’S PROTECTIVE ACT OF 1967.—No compensation

20 may be paid under section 10 of the Fishermen’s Protec21 tive Act of 1967 (22 U.S.C. 1980), relating to compensa22 tion for damage, loss, or destruction of fishing vessels or

23 fishing gear, except to the extent the compensation was

24 awarded before the effective date of this section.
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1 (f) TERMINATION OF COMPENSATION TO FISHERMEN

2 UNDER OUTER CONTINENTAL SHELF LANDS ACT

3 AMENDMENTS OF 1978.—No compensation may be paid

4 under title IV of the Outer Continental Shelf Lands Act

5 Amendments of 1978 (43 U.S.C. 1841 et seq.), except to

6 the extent the compensation was awarded before the effec7 tive date of this section.

8 (g) TERMINATION OF MISCELLANEOUS RESEARCH

9 FUNCTIONS.—The following functions, as vested in per10 sonnel of the National Oceanic and Atmospheric Adminis11 tration on the day before the effective date of this section,

12 are terminated:

13 (1) All observation and prediction functions re14 lating to pollution research.

15 (2) All functions relating to estuarine and

16 coastal assessment research.

17 (h) TERMINATION OF NOAA CORPS.—

18 (1) TERMINATION.—The National Oceanic and

19 Atmospheric Administration Corps is terminated,

20 and the assets thereof shall be transferred to the

21 Commerce Programs Resolution Agency.

22 (2) DISPOSITION OF ASSETS.—The Adminis23 trator of the Commerce Programs Resolution Agen24 cy shall attempt to sell the assets of the National

25 Oceanic and Atmospheric Administration Corps,
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1 within 18 months after the effective date specified in

2 section 7233(a), to a private sector entity intending

3 to perform substantially the same functions as were

4 performed by the National Oceanic and Atmospheric

5 Administration Corps immediately before such effec6 tive date.

7 (3) REPORT.—If no offer to purchase assets

8 under paragraph (2) is received within the 18-month

9 period described in such paragraph, the Commerce

10 Programs Resolution Agency shall submit a report

11 to the Congress containing recommendations on the

12 appropriate disposition of the assets and functions of

13 the National Oceanic and Atmospheric Administra14 tion Corps.

15 (i) DISPOSAL OF NOAA FLEET.—The Secretary of

16 the Interior—

17 (1) shall cease modernization of the National

18 Oceanic and Atmospheric Administration fleet of

19 vessels and terminate all new construction for that

20 fleet;

21 (2) shall promptly dispose of all assets compris22 ing the National Oceanic and Atmospheric Adminis23 tration fleet; and

24 (3) may not purchase any vessels for the Na25 tional Oceanic and Atmospheric Administration.
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1 (j) OFFICE OF OCEANIC AND ATMOSPHERIC RE2 SEARCH.—(1) Except as otherwise provided in paragraph

3 (2) or (3), the Office of Oceanic and Atmospheric Re4 search shall be terminated.

5 (2) Functions relating to weather research of the Of6 fice of Oceanic and Atmospheric Research shall be trans7 ferred to the National Weather Service.

8 (3)(A) The laboratories of the Office of Oceanic and

9 Atmospheric Research shall be transferred to the Com10 merce Programs Resolution Agency.

11 (B) The Commerce Programs Resolution Agency

12 shall attempt to sell the property of the laboratories of

13 the Office of Oceanic and Atmospheric Research, within

14 18 months after the effective date specified in section

15 7233(a), to a private sector entity intending to perform

16 substantially the same functions as were performed by the

17 laboratories of the Office of Oceanic and Atmospheric Re18 search immediately before such effective date.

19 (C) If no offer to purchase property under subpara20 graph (B) is received within the 18-month period de21 scribed in such subparagraph, the Commerce Programs

22 Resolution Agency shall transfer the remaining labora23 tories to the Department of the Interior, which shall sub24 mit a report to the Congress containing recommendations
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1 on the appropriate disposition of the property and func2 tions of such laboratories.

3 (k) NAUTICAL AND AERONAUTICAL CHARTING.—(1)

4 The nautical and aeronautical charting functions of the

5 National Oceanic and Atmospheric Administration shall

6 be transferred to the Defense Mapping Agency.

7 (2) The Defense Mapping Agency shall terminate any

8 functions transferred to it under paragraph (1) that are

9 performed by the private sector.

10 (l) NESDIS.—(1)(A) The National Environmental

11 Satellite, Data, and Information System Data Centers

12 shall be transferred to the Commerce Programs Resolu13 tion Agency.

14 (B) The Commerce Programs Resolution Agency

15 shall attempt to sell the property of the National Environ16 mental Satellite, Data, and Information System Data Cen17 ters, within 18 months after the effective date specified

18 in section 7233(a), to a private sector entity intending to

19 perform substantially the same functions as were per20 formed by the National Environmental Satellite, Data,

21 and Information System Data Centers immediately before

22 such effective date.

23 (C) If no offer to purchase property under subpara24 graph (B) is received within the 18-month period de25 scribed in such subparagraph, the Commerce Programs
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1 Resolution Agency shall submit a report to the Congress

2 containing recommendations on the appropriate disposi3 tion of the property and functions of the National Envi4 ronmental Satellite, Data, and Information System Data

5 Centers.

6 (2) Functions related to weather satellites of the Na7 tional Environmental Satellite, Data, and Information

8 System shall be transferred to the National Weather Serv9 ice.

10 (m) NATIONAL WEATHER SERVICE.—(1) The Na11 tional Weather Service is hereby transferred to the De12 partment of the Interior.

13 (2)(A) The National Weather Service shall terminate

14 its specialized agricultural, Marine Radiofax, and forestry

15 weather services, and its Regional Climate Centers.

16 (B) The National Weather Service may terminate any

17 other specialized weather services not required by law to

18 be performed.

19 (n) NATIONAL MARINE FISHERIES SERVICE.—

20 (1) TRANSFER OF ENFORCEMENT FUNC21 TIONS.—There are transferred to the Secretary of

22 Transportation all functions relating to law enforce23 ment that on the day before the effective date of this

24 section were authorized to be performed by the Na25 tional Marine Fisheries Service.
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1 (2) TRANSFER OF SCIENCE FUNCTIONS.——

2 There are transferred to the Director of the United

3 States Fish and Wildlife Service all functions relat4 ing to science that on the day before the effective

5 date of this section were authorized to be performed

6 by the National Marine Fisheries Service.

7 (3) TRANSFER OF SEAFOOD INSPECTION FUNC8 TIONS.—There are transferred to the Secretary of

9 Agriculture all functions relating to seafood inspec10 tion that on the day before the effective date of this

11 section were authorized to be performed by the Na12 tional Marine Fisheries Service.

13 (o) NATIONAL OCEAN SERVICE.—

14 (1) TRANSFER OF GEODESY FUNCTIONS.—

15 There are transferred to the Director of the United

16 States Geological Survey all functions relating to ge17 odesy that on the day before the effective date of

18 this section were authorized to be performed by the

19 National Ocean Service.

20 (2) TRANSFER OF MARINE AND ESTUARINE

21 SANCTUARY FUNCTIONS.—There are transferred to

22 the Secretary of the Interior all functions relating to

23 marine and estuarine sanctuaries that on the day

24 before the effective date of this section were author25 ized to be performed by the National Ocean Service.
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1 (p) ENVIRONMENTAL RESEARCH LABORATORIES.—

2 (1) TRANSFER.—The environmental research

3 laboratories of the National Oceanic and Atmos4 pheric Administration (other than laboratories of the

5 Office of Oceanic and Atmospheric Research, re6 ferred to in subsection (j)) shall be transferred to

7 the Commerce Programs Resolution Agency.

8 (2) DISPOSAL.—The Commerce Programs Res9 olution Agency shall attempt to sell the property of

10 the laboratories transferred under paragraph (1),

11 within 18 months after the effective date specified in

12 section 7233(a), to a private sector entity intending

13 to perform substantially the same functions as were

14 performed by the laboratories before such effective

15 date.

16 (3) REPORT.—If no offer to purchase property

17 under paragraph (2) is received within the 18-month

18 period described in such paragraph, the Commerce

19 Programs Resolution Agency shall submit a report

20 to the Congress containing recommendations on the

21 appropriate disposition of the property and functions

22 of the laboratories transferred under paragraph (1).

23 SEC. 7242. MISCELLANEOUS ABOLISHMENTS.

24 The following agencies and programs of the Depart25 ment of Commerce are abolished, and the functions of
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1 those agencies or programs are abolished except to the ex2 tent otherwise provided in this title:

3 (1) The Economic Development Administration.

4 (2) The Minority Business Development Admin5 istration.

6 (3) The United States Travel and Tourism Ad7 ministration.

8 (4) The National Telecommunications and In9 formation Administration.

10 (5) The Advanced Technology Program under

11 section 28 of the National Institute of Standards

12 and Technology Act (15 U.S.C. 278n).

13 (6) The Manufacturing Extension Programs

14 under sections 25 and 26 of the National Institute

15 of Standards and Technology Act (15 U.S.C. 278k

16 and 278l).

17 SEC. 7243. EFFECTIVE DATE.

18 (a) IN GENERAL.—Except as provided in subsection

19 (b), this title shall take effect on the effective date speci20 fied in section 7109(a).

21 (b) PROVISIONS EFFECTIVE ON DATE OF ENACT22 MENT.—The following provisions of this chapter shall take

23 effect on the date of the enactment of this Act:

24 (1) Section 7201.

25 (2) Section 7206 (a)(2) and (d).
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1 (3) Section 7232.

2 SEC. 7244. SENSE OF CONGRESS REGARDING USER FEES.

3 It is the sense of the Congress that the head of each

4 agency that performs a function vested in the agency by

5 this title should, wherever feasible, explore and implement

6 user fees for the provision of services in the performance

7 of that function, to offset operating costs.

8 CHAPTER 3—MISCELLANEOUS

9 PROVISIONS

10 SEC. 7251. REFERENCES.

11 Any reference in any other Federal law, Executive

12 order, rule, regulation, or delegation of authority, or any

13 document of or pertaining to an office from which a func14 tion is transferred by this title—

15 (1) to the Secretary of Commerce or an officer

16 of the Department of Commerce, is deemed to refer

17 to the head of the department or office to which

18 such function is transferred; or

19 (2) to the Department of Commerce or an

20 agency in the Department of Commerce is deemed

21 to refer to the department or office to which such

22 function is transferred.

23 SEC. 7252. EXERCISE OF AUTHORITIES.

24 Except as otherwise provided by law, a Federal offi25 cial to whom a function is transferred by this title may,
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1 for purposes of performing the function, exercise all au2 thorities under any other provision of law that were avail3 able with respect to the performance of that function to

4 the official responsible for the performance of the function

5 immediately before the effective date of the transfer of the

6 function under this title.

7 SEC. 7253. SAVINGS PROVISIONS.

8 (a) LEGAL DOCUMENTS.—All orders, determinations,

9 rules, regulations, permits, grants, loans, contracts, agree10 ments, certificates, licenses, and privileges—

11 (1) that have been issued, made, granted, or al12 lowed to become effective by the President, the Sec13 retary of Commerce, any officer or employee of any

14 office transferred by this title, or any other Govern15 ment official, or by a court of competent jurisdic16 tion, in the performance of any function that is

17 transferred by this title, and

18 (2) that are in effect on the effective date of

19 such transfer (or become effective after such date

20 pursuant to their terms as in effect on such effective

21 date),

22 shall continue in effect according to their terms until

23 modified, terminated, superseded, set aside, or revoked in

24 accordance with law by the President, any other author-
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1 ized official, a court of competent jurisdiction, or operation

2 of law.

3 (b) PROCEEDINGS.—This title shall not affect any

4 proceedings or any application for any benefits, service,

5 license, permit, certificate, or financial assistance pending

6 on the date of the enactment of this Act before an office

7 transferred by this title, but such proceedings and applica8 tions shall be continued. Orders shall be issued in such

9 proceedings, appeals shall be taken therefrom, and pay10 ments shall be made pursuant to such orders, as if this

11 title had not been enacted, and orders issued in any such

12 proceeding shall continue in effect until modified, termi13 nated, superseded, or revoked by a duly authorized official,

14 by a court of competent jurisdiction, or by operation of

15 law. Nothing in this subsection shall be considered to pro16 hibit the discontinuance or modification of any such pro17 ceeding under the same terms and conditions and to the

18 same extent that such proceeding could have been discon19 tinued or modified if this title had not been enacted.

20 (c) SUITS.—This title shall not affect suits com21 menced before the date of the enactment of this Act, and

22 in all such suits, proceeding shall be had, appeals taken,

23 and judgments rendered in the same manner and with the

24 same effect as if this title had not been enacted.
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1 (d) NONABATEMENT OF ACTIONS.—No suit, action,

2 or other proceeding commenced by or against the Depart3 ment of Commerce or the Secretary of Commerce, or by

4 or against any individual in the official capacity of such

5 individual as an officer or employee of an office trans6 ferred by this title, shall abate by reason of the enactment

7 of this title.

8 (e) CONTINUANCE OF SUITS.—If any officer of the

9 Department of Commerce or the Commerce Programs

10 Resolution Agency in the official capacity of such officer

11 is party to a suit with respect to a function of the officer,

12 and under this title such function is transferred to any

13 other officer or office, then such suit shall be continued

14 with the other officer or the head of such other office, as

15 applicable, substituted or added as a party.

16 SEC. 7254. TRANSFER OF ASSETS.

17 Except as otherwise provided in this title, so much

18 of the personnel, property, records, and unexpended bal19 ances of appropriations, allocations, and other funds em20 ployed, used, held, available, or to be made available in

21 connection with a function transferred to an official or

22 agency by this title shall be available to the official or the

23 head of that agency, respectively, at such time or times

24 as the Director of the Office of Management and Budget
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1 directs for use in connection with the functions trans2 ferred.

3 SEC. 7255. DELEGATION AND ASSIGNMENT.

4 Except as otherwise expressly prohibited by law or

5 otherwise provided in this title, an official to whom func6 tions are transferred under this title (including the head

7 of any office to which functions are transferred under this

8 title) may delegate any of the functions so transferred to

9 such officers and employees of the office of the official as

10 the official may designate, and may authorize successive

11 redelegations of such functions as may be necessary or ap12 propriate. No delegation of functions under this section

13 or under any other provision of this title shall relieve the

14 official to whom a function is transferred under this title

15 of responsibility for the administration of the function.

16 SEC. 7256. AUTHORITY OF ADMINISTRATOR WITH RESPECT

17 TO FUNCTIONS TRANSFERRED.

18 (a) DETERMINATIONS.—If necessary, the Adminis19 trator shall make any determination of the functions that

20 are transferred under this title.

21 (b) INCIDENTAL TRANSFERS.—The Administrator,

22 at such time or times as the Administrator shall provide,

23 may make such determinations as may be necessary with

24 regard to the functions transferred by this title, and to

25 make such additional incidental dispositions of personnel,
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1 assets, liabilities, grants, contracts, property, records, and

2 unexpended balances of appropriations, authorizations, al3 locations, and other funds held, used, arising from, avail4 able to, or to be made available in connection with such

5 functions, as may be necessary to carry out the provisions

6 of this title. The Administrator shall provide for the termi7 nation of the affairs of all entities terminated by this title

8 and for such further measures and dispositions as may

9 be necessary to effectuate the purposes of this title.

10 SEC. 7257. PROPOSED CHANGES IN LAW.

11 Not later than one year after the date of the enact12 ment of this Act, the Director of the Office of Manage13 ment and Budget shall submit to the Congress a descrip14 tion of any changes in Federal law necessary to reflect

15 abolishments, transfers, terminations, and disposals under

16 this title.

17 SEC. 7258. CERTAIN VESTING OF FUNCTIONS CONSIDERED

18 TRANSFERS.

19 For purposes of this title, the vesting of a function

20 in a department or office pursuant to reestablishment of

21 an office shall be considered to be the transfer of the

22 function.

23 SEC. 7259. DEFINITIONS.

24 For purposes of this title, the following definitions

25 apply:
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1 (1) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of the Commerce

3 Programs Resolution Agency.

4 (2) AGENCY.—The term ‘‘Agency’’ means the

5 Commerce Programs Resolution Agency.

6 (3) FUNCTION.—The term ‘‘function’’ includes

7 any duty, obligation, power, authority, responsibility,

8 right, privilege, activity, or program.

9 (4) OFFICE.—The term ‘‘office’’ includes any

10 office, administration, agency, bureau, institute,

11 council, unit, organizational entity, or component

12 thereof.

13 (5) WIND-UP PERIOD.—The term ‘‘wind-up pe14 riod’’ means the period beginning on the effective

15 date specified in section 109(a) and ending on the

16 termination date specified in section 106(d).

17 SEC. 7260. LIMITATION ON ANNUAL EXPENDITURES FOR

18 CONTINUED FUNCTIONS.

19 The amount expended by the United States each fis20 cal year for performance of a function which immediately

21 before the effective date of this section was authorized to

22 be performed by an agency, officer, or employee of the De23 partment of Commerce may not exceed 75 percent of the

24 total amount expended by the United States for perform25 ance of that function during fiscal year 1994.
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1 Subtitle D—Banking and Insurance

2 Reforms

3 CHAPTER 1—BANKING EXAMINATION

4 FEES

5 SEC. 7301. BANK EXAMINATION FEES.

6 (a) FDIC EXAMINATION FEES.—Section 10(e)(1) of

7 the Federal Deposit Insurance Act (12 U.S.C. 1820(e)(1))

8 is amended to read as follows:

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) REGULATORY EXAMINATIONS.—The

11 cost of conducting any examination under sub12 section (b)(2) of an insured depository institu13 tion described in subparagraph (A) of such sub14 section shall be assessed by the Corporation

15 against the institution in an amount sufficient

16 to meet the Corporation’s expenses in carrying

17 out the examination.

18 ‘‘(B) INSURANCE EXAMINATIONS.—The

19 cost of conducting any examination of a deposi20 tory institution under subsection (b)(2) or

21 (b)(3), other than an examination to which sub22 paragraph (A) applies, may be assessed by the

23 Corporation against the institution to meet the

24 Corporation’s expenses in carrying out the ex25 amination.’’.
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1 (b) FEDERAL RESERVE BOARD EXAMINATION

2 FEES.—The 2d sentence of the 8th undesignated para3 graph of section 9 of the Federal Reserve Act (12 U.S.C.

4 326) is amended—

5 (1) by striking ‘‘may, in the discretion of the

6 Board of Governors of the Federal Reserve System,

7 be assessed’’ and inserting ‘‘shall be assessed’’; and

8 (2) by striking ‘‘and, when so assessed, shall be

9 paid’’ and inserting ‘‘and shall be paid’’.

10 (c) TECHNICAL AND CONFORMING AMENDMENT.—

11 Section 10(b)(2) of the Federal Deposit Insurance Act (12

12 U.S.C. 1820(b)(2)) is amended by inserting ‘‘an examina13 tion is required under subsection (d)(1) or’’ after ‘‘when14 ever’’.

15 Subchapter A—Federal Banking Agency

16 SEC. 7311. ESTABLISHMENT.

17 (a) IN GENERAL.—There is hereby established an

18 agency to be known as the Federal Banking Agency (here19 after in this chapter referred to as the ‘‘Agency’’) as an

20 independent establishment in the executive branch.

21 (b) INSURED DEPOSITORY INSTITUTION DEFINED.—

22 For purposes of this chapter, the term ‘‘insured depository

23 institution’’ has the meaning given to such term in section

24 3(c) of the Federal Deposit Insurance Act.
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1 SEC. 7312. MANAGEMENT.

2 (a) BOARD OF DIRECTORS.—

3 (1) IN GENERAL.—The Agency shall be under

4 the management of a board of directors (hereafter in

5 this chapter referred to as the ‘‘Board’’) composed

6 of 7 members—

7 (A) 1 of whom shall be the Secretary of

8 the Treasury;

9 (B) 1 of whom shall be the Chairman of

10 the Board of Governors of the Federal Reserve

11 System;

12 (C) 1 of whom shall be the Chairperson of

13 the Board of Directors of the Federal Deposit

14 Insurance Corporation; and

15 (D) 4 of whom shall be appointed by the

16 President, by and with the advice and consent

17 of the Senate.

18 (2) POLITICAL AFFILIATION.—Not more than 2

19 members of the Board appointed under paragraph

20 (1)(D) may be members of the same political party.

21 (b) CHAIRPERSON AND VICE CHAIRPERSON.—

22 (1) CHAIRPERSON.—1 of the members of the

23 Board appointed under subsection (a)(1)(D) shall be

24 designated by the President, by and with the advice

25 and consent of the Senate, to serve as Chairperson

26 of the Board.
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1 (2) VICE CHAIRPERSON.—1 of the members of

2 the Board appointed under subsection (a)(1)(D)

3 shall be designated by the President, by and with

4 the advice and consent of the Senate, to serve as

5 Vice Chairperson of the Board.

6 (3) ACTING CHAIRPERSON.—In the event of a

7 vacancy in the position of Chairperson of the Board,

8 or during the absence or disability of the Chair9 person, the Vice Chairperson shall act as Chair10 person.

11 (c) TERMS.—

12 (1) 5-YEAR TERMS.—Except as provided in

13 paragraph (4), each member appointed under sub14 section (a)(1)(D) shall be appointed for a term of 5

15 years.

16 (2) INTERIM APPOINTMENTS.—Any member ap17 pointed to fill a vacancy occurring before the end of

18 the term to which such member’s predecessor was

19 appointed shall be appointed only for the remainder

20 of such term.

21 (3) CONTINUATION OF SERVICE.—Any member

22 may continue to serve after the expiration of the

23 term of office to which such member was appointed

24 until a successor has been appointed and qualified.
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1 (4) STAGGERED FOR 1ST APPOINTEES.—Of the

2 members first appointed to the Board under sub3 section (a)(1)(D)—

4 (A) 1 shall be appointed for a term of 5

5 years;

6 (B) 1 shall be appointed for a term of 4

7 years;

8 (C) 1 shall be appointed for a term of 3

9 years; and

10 (D) 1 shall be appointed for a term of 2

11 years,

12 as designated by the President at the time of the

13 appointment.

14 (d) VACANCY.—Any vacancy on the Board shall be

15 filled in the manner in which the original appointment was

16 made.

17 (e) INELIGIBILITY FOR OTHER OFFICES.—

18 (1) RESTRICTIONS ON EMPLOYMENT BY DEPOS19 ITORY INSTITUTIONS.—No member of the Board

20 may hold any office, position, or employment in any

21 insured depository institution or any affiliate (as de22 fined in section 2(k) of the Bank Holding

23 Company Act of 1956) of an insured depository

24 institution during—

25 (A) the time such member is in office; and
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1 (B) the 2-year period beginning on the

2 date such member ceases to serve on the Board.

3 (2) OTHER RESTRICTIONS DURING SERVICE AS

4 MEMBER.—No member of the Board may—

5 (A) be an officer or director of any Federal

6 reserve bank or Federal home loan bank; or

7 (B) hold any stock in any insured deposi8 tory institution or any affiliate (as defined in

9 section 2(k) of the Bank Holding Company Act

10 of 1956) of an insured depository institution.

11 (3) CERTIFICATION.—Upon taking office, each

12 member of the Board shall file a certification under

13 oath with the secretary of the Board that such mem14 ber has complied with the requirements of this sub15 section.

16 SEC. 7313. POWERS AND DUTIES.

17 (a) REGULATION OF NATIONAL BANKS.—

18 (1) TRANSFER TO AGENCY.—All functions of

19 the Comptroller of the Currency are hereby trans20 ferred to the Agency.

21 (2) AGENCY POWERS.—The Agency shall have

22 all powers, duties, and authority which, before the

23 date of the enactment of this Act, were vested in the

24 Comptroller of the Currency under the following pro25 visions of law to the extent such provisions apply to
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1 national banks or the office, officers, or employees of

2 the Comptroller of the Currency:

3 (A) Chapter nine of title VII and title

4 LXII of the Revised Statutes.

5 (B) The Bank Conservation Act.

6 (C) The Federal Deposit Insurance Act.

7 (D) The National Bank Receivership Act.

8 (E) The Act entitled ‘‘An Act additional to

9 the Act entitled ‘An Act to provide a national

10 currency secured by a pledge of United States

11 bonds and to provide for the circulation and re12 demption thereof,’ passed June third, eighteen

13 hundred and sixty four.’’ and approved March

14 29, 1886.

15 (F) The Act entitled ‘‘An Act to provide

16 for the conversion of national banking associa17 tions into and their merger or consolidation

18 with State banks, and for other purposes.’’ and

19 approved August 17, 1950.

20 (G) The National Bank Consolidation and

21 Merger Act.

22 (H) The International Banking Act of

23 1978.

24 (I) The Farm Credit Act of 1971.
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1 (J) Any title of the Consumer Credit Pro2 tection Act.

3 (K) The Bank Protection Act of 1968.

4 (L) The Home Mortgage Disclosure Act of

5 1975.

6 (M) The Community Reinvestment Act of

7 1977.

8 (N) The Depository Institution Manage9 ment Interlocks Act.

10 (O) Sections 2, 4, 19(h), 22(g), 24(a),

11 24A, 25, 25A, and 29 of the Federal Reserve

12 Act.

13 (P) The Bank Service Corporation Act.

14 (Q) The Federal Financial Institutions Ex15 amination Council Act of 1978.

16 (R) The Right to Financial Privacy Act of

17 1978.

18 (S) The Alternative Mortgage Transaction

19 Parity Act of 1982.

20 (T) The International Lending Supervision

21 Act of 1983.

22 (U) The Expedited Funds Availability Act.

23 (V) The Financial Institutions Reform, Re24 covery, and Enforcement Act of 1989.
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1 (W) The Federal Deposit Insurance Cor2 poration Improvement Act of 1991.

3 (X) The Riegle-Neal Interstate Banking

4 and Branching Efficiency Act of 1994.

5 (Y) The Riegle Community Development

6 and Regulatory Improvement Act of 1994.

7 (Z) The Truth in Savings Act.

8 (b) REGULATION OF MEMBER BANKS, BANK HOLD9 ING COMPANIES AND AFFILIATES, AND VARIOUS INTER10 NATIONAL BANKING ENTITIES.—

11 (1) TRANSFER TO AGENCY.—All functions of

12 the Board of Governors of the Federal Reserve Sys13 tem (and any Federal reserve bank) relating to—

14 (A) the supervision and regulation of

15 banks which are members of the Federal Re16 serve System;

17 (B) the supervision and regulation of bank

18 holding companies and any subsidiary or affili19 ate of a bank holding company which is not a

20 depository institution;

21 (C) the supervision and regulation of com22 panies operating under section 25 or 25A of the

23 Federal Reserve Act or the International Bank24 ing Act of 1978;
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1 (D) the supervision and regulation of any

2 company which is subject to supervision and

3 regulation by the Board of Governors under any

4 title of the Consumer Protection Act; and

5 (E) the supervision and regulation of any

6 foreign bank, any branch or agency of a foreign

7 bank, and any commercial lending company

8 controlled by a foreign bank,

9 are hereby transferred to the Agency.

10 (2) AGENCY POWERS.—The Agency shall have

11 all powers, duties, and authority which, before the

12 date of the enactment of this Act, were vested in the

13 Board of Governors of the Federal Reserve System

14 under the following provisions of law to the extent

15 such provisions apply to banks or other companies

16 described in any subparagraph of paragraph (1):

17 (A) Sections 6 (other than the 1st and 2d

18 paragraphs), 9, 19(h), 22(g), 22(h), 23A, 23B,

19 24(a), 24A, 25, 25A, and 29 of the Federal

20 Reserve Act.

21 (B) The Bank Holding Company Act of

22 1956.

23 (C) The Bank Holding Company Act

24 Amendments of 1970.
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1 (D) The International Banking Act of

2 1978.

3 (E) Sections 20, 31, and 32 of the Na4 tional Banking Act of 1933.

5 (F) The Federal Deposit Insurance Act.

6 (G) Any title of the Consumer Credit Pro7 tection Act.

8 (H) The Bank Protection Act of 1968.

9 (I) The Home Mortgage Disclosure Act of

10 1975.

11 (J) The Community Reinvestment Act of

12 1977.

13 (K) The Depository Institution Manage14 ment Interlocks Act.

15 (L) The Bank Service Corporation Act.

16 (M) The Federal Financial Institutions

17 Examination Council Act of 1978.

18 (N) The Right to Financial Privacy Act of

19 1978.

20 (O) The Alternative Mortgage Transaction

21 Parity Act of 1982.

22 (P) The International Lending Supervision

23 Act of 1983.

24 (Q) The Expedited Funds Availability Act.
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1 (R) The Financial Institutions Reform,

2 Recovery, and Enforcement Act of 1989.

3 (S) The Federal Deposit Insurance Cor4 poration Improvement Act of 1991.

5 (T) The Riegle-Neal Interstate Banking

6 and Branching Efficiency Act of 1994.

7 (U) The Riegle Community Development

8 and Regulatory Improvement Act of 1994.

9 (V) The Truth in Savings Act.

10 (c) REGULATION OF SAVINGS ASSOCIATIONS AND

11 SAVINGS AND LOAN HOLDING COMPANIES.—

12 (1) TRANSFER TO AGENCY.—All functions of

13 the Director of the Office of Thrift Supervision are

14 hereby transferred to the Agency.

15 (2) AGENCY POWERS.—The Agency shall have

16 all powers, duties, and authority which, before the

17 date of the enactment of this Act, were vested in the

18 Director of the Office of Thrift Supervision under

19 the following provisions of law to the extent such

20 provisions apply to savings associations, savings and

21 loan holding companies, or the office, officers, or

22 employees of the Director:

23 (A) The Home Owners’ Loan Act.

24 (B) The Federal Deposit Insurance Act.
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1 (C) Any title of the Consumer Credit Pro2 tection Act.

3 (D) The Bank Protection Act of 1968.

4 (E) The Home Mortgage Disclosure Act of

5 1975.

6 (F) The Community Reinvestment Act of

7 1977.

8 (G) The Depository Institution Manage9 ment Interlocks Act.

10 (H) The Bank Service Corporation Act.

11 (I) The Federal Financial Institutions Ex12 amination Council Act of 1978.

13 (J) The Right to Financial Privacy Act of

14 1978.

15 (K) The Alternative Mortgage Transaction

16 Parity Act of 1982.

17 (L) The Expedited Funds Availability Act.

18 (M) The Financial Institutions Reform,

19 Recovery, and Enforcement Act of 1989.

20 (N) The Federal Deposit Insurance Cor21 poration Improvement Act of 1991.

22 (O) The Resolution Trust Corporation Re23 financing, Restructuring, and Improvement Act

24 of 1991.
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1 (P) The Riegle-Neal Interstate Banking

2 and Branching Efficiency Act of 1994.

3 (Q) The Riegle Community Development

4 and Regulatory Improvement Act of 1994.

5 (R) The Truth in Savings Act.

6 (d) REGULATION OF STATE NONMEMBER BANKS.—

7 (1) TRANSFER TO AGENCY.—All functions of

8 the Federal Deposit Insurance Corporation relating

9 to the supervision and regulation of State

10 nonmember banks, including savings banks, (other

11 than insurance, conservatorship, or receivership

12 functions) and foreign banks with insured branches

13 (as defined in section 3(s)(3) of the Federal Deposit

14 Insurance Act) are hereby transferred to the Agen15 cy.

16 (2) AGENCY POWERS.—The Agency shall have

17 all powers, duties, and authority which, before the

18 date of the enactment of this Act, were vested in the

19 Federal Deposit Insurance Corporation or in the

20 Board of Directors of such Corporation under the

21 following provisions of law:

22 (A) Sections 7(a), 20, 21, 22, 27, 30(c),

23 32, 33, 34, 35, 36, 37, 38, 39, 42, and 44, sub24 sections (b) through (n), (r), (s), (u), and (v)

25 of section 8, subsections (b)(2)(A), (c), (d), and
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1 (e) of section 10, subsections (c) (other than

2 paragraph (1)), (d), (g), (i), (j), (l), (o), and (p)

3 of section 18 of the Federal Deposit Insurance

4 Act.

5 (B) Any title of the Consumer Credit Pro6 tection Act.

7 (C) The Depository Institution Manage8 ment Interlocks Act.

9 (D) The Federal Financial Institutions Ex10 amination Council Act of 1978.

11 (E) The Home Mortgage Disclosure Act of

12 1975.

13 (F) The Right to Financial Privacy Act of

14 1978.

15 (G) The Alternative Mortgage Transaction

16 Parity Act of 1982.

17 (H) The Bank Service Corporation Act.

18 (I) The Expedited Funds Availability Act.

19 (J) The Financial Institutions Reform, Re20 covery, and Enforcement Act of 1989.

21 (K) The Community Reinvestment Act of

22 1977.

23 (L) The Federal Deposit Insurance Cor24 poration Improvement Act of 1991.
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1 (M) The Riegle-Neal Interstate Banking

2 and Branching Efficiency Act of 1994.

3 (N) The Riegle Community Development

4 and Regulatory Improvement Act of 1994.

5 (O) The Truth in Savings Act.

6 (e) REGULATION OF CREDIT UNIONS.—

7 (1) TRANSFER TO AGENCY.—All functions of

8 the National Credit Union Administration relating

9 to the supervision and regulation of credit unions,

10 including the National Credit Union Administration

11 Central Liquidity Facility and the Community De12 velopment Credit Union Revolving Loan Fund,

13 (other than insurance, conservatorship, or liquidat14 ing agency functions) are hereby transferred to the

15 Agency.

16 (2) AGENCY POWERS.—The Agency shall have

17 all powers, duties, and authority which, before the

18 date of the enactment of this Act, were vested in the

19 National Credit Union Administration or the Na20 tional Credit Union Administration Board under the

21 following provisions of law:

22 (A) The Federal Credit Union Act.

23 (B) The Community Development Credit

24 Union Revolving Loan Fund Transfer Act.
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1 (C) Any title of the Consumer Credit Pro2 tection Act.

3 (D) The Expedited Funds Availability Act.

4 (E) The Federal Financial Institutions Ex5 amination Council Act of 1978.

6 (F) The Right to Financial Privacy Act of

7 1978.

8 (G) The Truth in Savings Act.

9 (f) REGULATIONS AND ORDERS.—In addition to any

10 authority under any Act referred to in subsection (a), (b),

11 (c), (d), or (e), the Agency may prescribe such regulations

12 and issue such orders as the Agency may determine to

13 be appropriate to carry out the purposes of this chapter

14 and the powers and duties of the Agency under this chap15 ter and any Act referred to in any such subsection.

16 SEC. 7314. TECHNICAL AND CONFORMING AMENDMENTS

17 RELATING TO TRANSFERS OF FUNCTIONS.

18 (a) APPROPRIATE FEDERAL BANKING AGENCY RE19 DEFINED.—Section 3(q) of the Federal Deposit Insurance

20 Act (12 U.S.C. 1813(q)) is amended to read as follows:

21 ‘‘(q) APPROPRIATE FEDERAL BANKING AGENCY.—

22 The term ‘appropriate Federal banking agency’ means the

23 Federal Banking Agency.’’.
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1 (b) MEMBERS OF FDIC BOARD.—Section 2(a)(1) of

2 the Federal Deposit Insurance Act (12 U.S.C. 1812(a)(1))

3 is amended—

4 (1) by striking subparagraph (A) and redesig5 nating subparagraphs (B) and (C) as subparagraphs

6 (A) and (B), respectively;

7 (2) in subparagraph (A) (as so redesignated by

8 paragraph (1)), by striking ‘‘Director of the Office

9 of Thrift Supervision’’ and inserting ‘‘Chairperson of

10 the Federal Banking Agency’’; and

11 (3) in subparagraph (B) (as so redesignated by

12 paragraph (1)), by striking ‘‘3’’ and inserting ‘‘4’’.

13 Subchapter B—Abolition of Federal Banking

14 Agencies

15 SEC. 7321. OFFICE OF COMPTROLLER OF THE CURRENCY

16 AND POSITION OF COMPTROLLER OF THE

17 CURRENCY ABOLISHED.

18 (a) IN GENERAL.—Effective at the end of the 180-

19 day period beginning on the date of the enactment of this

20 Act, the Office of the Comptroller of the Currency and

21 the position of Comptroller of the Currency are hereby

22 abolished.

23 (b) TECHNICAL AND CONFORMING AMENDMENTS.—
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1 (1) Chapter nine of title VII of the Revised

2 Statutes is amended by striking sections 324, 325,

3 and 326.

4 (2) Subchapter I of chapter 3 of title 31,

5 United States Code, is amended by striking section

6 307.

7 SEC. 7322. OFFICE OF THRIFT SUPERVISION AND POSITION

8 OF DIRECTOR OF THE OFFICE OF THRIFT SU9 PERVISION ABOLISHED.

10 (a) IN GENERAL.—Effective at the end of the 180-

11 day period beginning on the date of the enactment of this

12 Act, the Office of Thrift Supervision and the position of

13 Director of the Office of Thrift Supervision are hereby

14 abolished.

15 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

16 (1) Section 3 of the Home Owners’ Loan Act

17 (12 U.S.C. 1462a) is amended by striking sub18 sections (a) and (b).

19 (2) Subchapter I of chapter 3 of title 31,

20 United States Code, is amended by striking section

21 309.

22 SEC. 7323. SAVINGS PROVISIONS.

23 (a) SAVINGS PROVISIONS RELATING TO THE COMP24 TROLLER OF THE CURRENCY.—
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1 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA2 TIONS NOT AFFECTED.—Section 7313(a)(1) shall

3 not affect the validity of any right, duty, or obliga4 tion of the United States, the Comptroller of the

5 Currency, the Office of the Comptroller of the Cur6 rency, or any other person, which—

7 (A) arises under or pursuant to any provi8 sion of law referred to in section 7313(a)(2);

9 and

10 (B) existed on the day before the date of

11 the enactment of this Act.

12 (2) CONTINUATION OF SUITS.—No action or

13 other proceeding commenced by or against the

14 Comptroller of the Currency or the Office of the

15 Comptroller of the Currency shall abate by reason of

16 the enactment of this chapter, except that the Fed17 eral Banking Agency shall be substituted for the

18 Comptroller or Office as a party to any such action

19 or proceeding.

20 (b) SAVINGS PROVISIONS RELATING TO THE BOARD

21 OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.—

22 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA23 TIONS NOT AFFECTED.—Section 7313(b)(1) shall

24 not affect the validity of any right, duty, or obliga25 tion of the United States, the Board of Governors of
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1 the Federal Reserve System, or any other person,

2 which—

3 (A) arises under or pursuant to any provi4 sion of law referred to in section 7313(b)(2);

5 and

6 (B) existed on the day before the date of

7 the enactment of this Act.

8 (2) CONTINUATION OF SUITS.—No action or

9 other proceeding commenced by or against the

10 Board of Governors of the Federal Reserve System

11 with respect to any function transferred to the Fed12 eral Banking Agency shall abate by reason of the en13 actment of this chapter, except that the Federal

14 Banking Agency shall be substituted for the Board

15 of Governors as a party to any such action or pro16 ceeding.

17 (c) SAVINGS PROVISIONS RELATING TO THE DIREC18 TOR OF THE OFFICE OF THRIFT SUPERVISION.—

19 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA20 TIONS NOT AFFECTED.—Section 7313(c)(1) shall

21 not affect the validity of any right, duty, or obliga22 tion of the United States, the Director of the Office

23 of Thrift Supervision, the Office of Thrift

24 Supervision, or any other person, which—
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1 (A) arises under or pursuant to any provi2 sion of law referred to in section 7313(c)(2);

3 and

4 (B) existed on the day before the date of

5 the enactment of this Act.

6 (2) CONTINUATION OF SUITS.—No action or

7 other proceeding commenced by or against the Di8 rector of the Office of Thrift Supervision or the Of9 fice of Thrift Supervision shall abate by reason of

10 the enactment of this chapter, except that the Fed11 eral Banking Agency shall be substituted for the

12 Director or Office as a party to any such action or

13 proceeding.

14 (d) SAVINGS PROVISIONS RELATING TO THE FED15 ERAL DEPOSIT INSURANCE CORPORATION.—

16 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA17 TIONS NOT AFFECTED.—Section 7313(d)(1) shall

18 not affect the validity of any right, duty, or obliga19 tion of the United States, the Federal Deposit In20 surance Corporation, the Board of Directors of such

21 Corporation, or any other person, which—

22 (A) arises under or pursuant to any provi23 sion of law referred to in section 7313(d)(2);

24 and
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1 (B) existed on the day before the date of

2 the enactment of this Act.

3 (2) CONTINUATION OF SUITS.—No action or

4 other proceeding commenced by or against the Fed5 eral Deposit Insurance Corporation or the Board of

6 Directors of such Corporation with respect to any

7 function transferred to the Federal Banking Agency

8 shall abate by reason of the enactment of this chap9 ter, except that the Federal Banking Agency may be

10 substituted for the Corporation or Board of Direc11 tors, as the case may be, as a party to any such ac12 tion or proceeding.

13 (e) SAVINGS PROVISIONS RELATING TO THE NA14 TIONAL CREDIT UNION ADMINISTRATION.—

15 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA16 TIONS NOT AFFECTED.—Section 7313(e)(1) shall

17 not affect the validity of any right, duty, or obliga18 tion of the United States, the National Credit Union

19 Administration, the National Credit Union Adminis20 tration Board, or any other person, which—

21 (A) arises under or pursuant to any provi22 sion of law referred to in section 7313(e)(2);

23 and

24 (B) existed on the day before the date of

25 the enactment of this Act.
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1 (2) CONTINUATION OF SUITS.—No action or

2 other proceeding commenced by or against the Na3 tional Credit Union Administration or the National

4 Credit Union Administration Board with respect to

5 any function transferred to the Federal Banking

6 Agency shall abate by reason of the enactment of

7 this chapter, except that the Federal Banking Agen8 cy may be substituted for the Administration or the

9 Board, as the case may be, as a party to any such

10 action or proceeding.

11 (f) CONTINUATION OF ORDERS, RESOLUTIONS, DE12 TERMINATIONS, AND REGULATIONS.—All orders, resolu13 tions, determinations, and regulations, which—

14 (1) have been issued, made, prescribed, or al15 lowed to become effective by the Director of the Of16 fice of Thrift Supervision, the Comptroller of the

17 Currency, the Federal Deposit Insurance Corpora18 tion, the Board of Governors of the Federal Reserve

19 System, or the National Credit Union Administra20 tion (including orders, resolutions, determinations,

21 and regulations which relate to the conduct of

22 conservatorships, receiverships, or liquidating

23 agents), or by a court of competent jurisdiction, in

24 the performance of functions which are transferred

25 by this chapter; and
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1 (2) are in effect on the date this Act takes ef2 fect (or become effective after such date pursuant to

3 the terms of the order, resolution, determination or

4 regulation, as in effect on such date),

5 shall continue in effect according to the terms of such or6 ders, resolutions, determinations, and regulations and

7 shall be enforceable by or against the Federal Banking

8 Agency until modified, terminated, set aside, or super9 seded in accordance with applicable law by the Agency,

10 by any court of competent jurisdiction, or by operation of

11 law.

12 SEC. 7324. REFERENCES IN FEDERAL LAW TO FEDERAL

13 BANKING AGENCIES.

14 (a) COMPTROLLER OF THE CURRENCY AND DIREC15 TOR OF THE OFFICE OF THRIFT SUPERVISION.—Any ref16 erence in any Federal law to the Comptroller of the Cur17 rency, the Office of the Comptroller of the Currency, the

18 Director of the Office of Thrift Supervision, or the Office

19 of Thrift Supervision shall be deemed to be a reference

20 to the Federal Banking Agency.

21 (b) BOARD OF GOVERNORS OF THE FEDERAL RE22 SERVE SYSTEM.—Any reference in any Federal law to the

23 Board of Governors of the Federal Reserve System in

24 connection with any function of the Board under any
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1 provision of law referred to in section 7313(b)(2) shall be

2 deemed to be a reference to the Federal Banking Agency.

3 (c) FEDERAL DEPOSIT INSURANCE CORPORATION.—

4 Any reference in any Federal law to the Federal Deposit

5 Insurance Corporation or the Board of Directors of such

6 Corporation in connection with any function of the Cor7 poration or Board of Directors under any provision of law

8 referred to in section 7313(d)(2) shall be deemed to be

9 a reference to the Federal Banking Agency.

10 (d) NATIONAL CREDIT UNION ADMINISTRATION.—

11 Any reference in any Federal law to the National Credit

12 Union Administration or the National Credit Union Ad13 ministration Board in connection with any function of the

14 Administration or Board under any provision of law re15 ferred to in section 7313(e)(2) shall be deemed to be a

16 reference to the Federal Banking Agency.

17 Subchapter C—Section 235 Mortgage

18 Refinancing

19 SEC. 7325. SECTION 235 MORTGAGE REFINANCING.

20 Section 235(r) of the National Housing Act (12

21 U.S.C. 1715z(r)) is amended—

22 (1) in paragraph (2)(C), by inserting after ‘‘re23 financed’’ the following: ‘‘, plus the costs incurred in

24 connection with the refinancing as described in para25 graph (4)(B) to the extent that the amount for those
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1 costs is not otherwise included in the interest rate

2 as permitted by subparagraph (E) or paid by the

3 Secretary as authorized by paragraph (4)(B)’’;

4 (2) in paragraph (4)—

5 (A) in the matter preceding subparagraph

6 (A), by inserting after ‘‘otherwise)’’ the follow7 ing: ‘‘and the mortgagee (with respect to the

8 amount described in subparagraph (A))’’; and

9 (B) in subparagraph (A), by inserting after

10 ‘‘mortgagor’’ the following: ‘‘and the mortga11 gee’’; and

12 (3) by amending paragraph (5) to read as fol13 lows:

14 ‘‘(5) The Secretary shall use amounts of budget au15 thority recaptured from assistance payments contracts re16 lating to mortgages that are being refinanced for assist17 ance payments contracts with respect to mortgages in18 sured under this subsection. The Secretary may also make

19 such recaptured amounts available for incentives under

20 paragraph (4)(A) and the costs incurred in connection

21 with the refinancing under paragraph (4)(B). For pur22 poses of subsection (c)(3)(A), the amount of recaptured

23 budget authority that the Secretary commits for assist24 ance payments contracts relating to mortgages insured
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1 under this subsection and for amounts paid under para2 graph (4) shall not be construed as unused.’’.

3 SEC. 7326. PENALTY FOR EARLY REDEMPTION OF SAVINGS

4 BONDS.

5 (a) IN GENERAL.—Subsection (b) of section 3105 of

6 title 31, United States Code, is amended by adding at the

7 end the following new paragraph:

8 ‘‘(3) In the case of any savings bond which is

9 redeemed within the 5-year period beginning on the

10 date the bond is issued, the redemption price paid

11 on the redemption shall be determined by reducing

12 the holding period otherwise taken into account by

13 6 months.’’

14 (b) EFFECTIVE DATE.—The amendment made by

15 subsection (a) shall apply to bonds issued after September

16 30, 1995.

17 SEC. 7327. ONE DOLLAR COINS.

18 (a) COLOR AND CONTENT.—Section 5112(b) of title

19 31, United States Code, is amended—

20 (1) in the 1st sentence, by striking ‘‘dollar,’’;

21 and

22 (2) by inserting after the 4th sentence, the fol23 lowing new sentence: ‘‘The dollar coin shall be gold24 en in color, have an unreeded edge, have tactile and

25 visual features that make the denomination of the
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1 coin readily discernible, be minted and fabricated in

2 the United States, and have similar metallic,

3 anticounterfeiting properties as United States clad

4 coinage in circulation on the date of the enactment

5 of the United States One Dollar Coin Act of 1995.’’.

6 (b) AMERICAN VETERAN DOLLAR COIN.—Section

7 5112(d)(1) of title 31, United States Code, is amended

8 by striking the 5th and 6th sentences and inserting the

9 following new sentences: ‘‘The reverse side of the dollar

10 shall have a design recognizing America’s veterans. The

11 Secretary of the Treasury shall select an appropriate de12 sign for the obverse side of the dollar.’’.

13 (c) EFFECTIVE DATE.—Not later than 18 months

14 after the date of enactment of this Act, the Secretary of

15 the Treasury shall place into circulation 1 dollar coins au16 thorized under subsection (a)(1) of section 5112 of title

17 31, United States Code, which comply with the design re18 quirements of subsections (b) and (d)(1) of such section,

19 as amended by subsections (a) and (b) of this section. The

20 Secretary may include such coins in any numismatic set

21 produced by the United States Mint before the date the

22 coins are placed in circulation.

23 SEC. 7328. CEASING ISSUANCE OF ONE DOLLAR NOTES.

24 (a) IN GENERAL.—After the date that coins de25 scribed in section 2012(c) are first placed in circulation,
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1 no Federal reserve bank may order or place into circula2 tion any $1 Federal Reserve note.

3 (b) EXCEPTION.—The Secretary of the Treasury

4 shall produce only such Federal Reserve notes of 1 dollar

5 denomination as are required from time to time to meet

6 the needs of collectors of this series. Such notes shall be

7 produced in sheets and sold by the Secretary, in whole,

8 or in part, at a price that exceeds the face value of the

9 currency by an amount that, at a minimum, reimburses

10 the Secretary for the cost of production.

11 Subtitle E—Specific Commerce and

12 Housing Program Reforms

13 SEC. 7401. OBLIGATION LIMITATION FOR MINORITY BUSI14 NESS DEVELOPMENT AGENCY.

15 The total of obligations incurred in fiscal year 1996

16 for expenses of the Minority Business Development Agen17 cy described under the heading ‘‘Minority Business Devel18 opment’’ in title II of the Departments of Commerce, Jus19 tice, and State, the Judiciary, and Related Agencies Ap20 propriations Act, 1995 (Public Law 103–317; 108 Stat.

21 1745–1746) may not exceed $44,733,000.

22 SEC. 7402. UNITED STATES TRAVEL AND TOURISM ADMIN23 ISTRATION.

24 Title III of the International Travel Act of 1961 is

25 repealed, the United States Travel and Tourism Adminis-
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1 tration established under section 301 of such Act is termi2 nated, the Tourism Policy Council established under sec3 tion 302 of such Act is terminated, the Travel and Tour4 ism Advisory Board established under section 303 of such

5 Act is terminated, the officers and employees of the Ad6 ministration, Council, and Board are terminated, and the

7 functions of the Administration, Council, and Board are

8 transferred to the Secretary of Transportation.

9 SEC. 7403. EXPORT ADMINISTRATION.

10 Not more than $247,000,000 may be made available

11 to carry out the Export Administration Act of 1979 for

12 each of fiscal years 1996, 1997, 1998, 1999, and 2000.

13 SEC. 7404. ASSISTANCE FOR PUBLIC TELECOMMUNI14 CATIONS FACILITIES AND TELECOMMUNI15 CATIONS DEMONSTRATIONS.

16 (a) REPEAL OF PUBLIC TELECOMMUNICATIONS FA17 CILITIES PROGRAM.—Subpart A of part IV of title III of

18 the Communications Act of 1934 (47 U.S.C. 390 et seq.)

19 is repealed.

20 (b) REPEAL OF TELECOMMUNICATIONS DEMONSTRA21 TION GRANT PROGRAM.—Section 395 of such Act (47

22 U.S.C. 395) is repealed.
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1 SEC. 7405. ABOLISHMENT OF ADVANCED TECHNOLOGY

2 PROGRAM.

3 (a) ABOLISHMENT OF PROGRAM.—Section 28 of the

4 National Institute of Standards and Technology Act (15

5 U.S.C. 278n) is repealed.

6 (b) CONFORMING AMENDMENTS.—The National In7 stitute of Standards and Technology Act (15 U.S.C. 271

8 et seq.) is amended—

9 (1) in section 2(d), by striking ‘‘sections 25, 26,

10 and 28’’ and inserting ‘‘sections 25 and 26’’; and

11 (2) in section 10(h)(1), by striking ‘‘, including

12 the Program established under section 28,’’.

13 SEC. 7406. FEES FOR FEDERAL AND FEDERALLY SPON14 SORED ENTERPRISES.

15 (a) FEES FOR GOVERNMENT SPONSORED ENTER16 PRISES.—

17 (1) IN GENERAL.—To compensate the Federal

18 Government for borrowing and financial advantages

19 derived from the relationship of government-spon20 sored enterprises to the Federal Government and

21 treatment of such enterprises under Federal law, the

22 Secretary of the Treasury shall collect a fee from

23 each Government-sponsored enterprise for each fis24 cal year. The Secretary of the Treasury shall deposit

25 any such fee collected in the general fund of the

26 Treasury of the United States.
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1 (2) AMOUNT.—The fee under this subsection

2 for a government-sponsored enterprise for a fiscal

3 year shall be the following amount:

4 (A) FANNIE MAE AND FREDDIE MAC.—For

5 the Federal National Mortgage Association and

6 the Federal Home Loan Mortgage Corpora7 tion—

8 (i) for fiscal year 1996, an amount

9 equal to 0.05 percent of the aggregate

10 original principal balance of mortgage11 backed securities and substantially equiva12 lent instruments issued or guaranteed by

13 such enterprise during such year;

14 (ii) for fiscal year 1997, an amount

15 equal to 0.10 percent of the aggregate

16 original principal balance of mortgage17 backed securities and substantially equiva18 lent instruments issued or guaranteed by

19 such enterprise during such year; and

20 (iii) for fiscal year 1998 and each fis21 cal year thereafter, an amount equal to

22 0.15 percent of the aggregate original prin23 cipal balance of mortgage-backed securities

24 and substantially equivalent instruments
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1 issued or guaranteed by such enterprise

2 during such year.

3 (B) SALLIE MAE.—For the Student Loan

4 Marketing Association—

5 (i) for fiscal year 1996, an amount

6 equal to 0.10 percent of the aggregate

7 original principal balance of debt securities

8 issued by such enterprise during such year;

9 (ii) for fiscal year 1997, an amount

10 equal to 0.20 percent of the aggregate

11 original principal balance of debt securities

12 issued by such enterprise during such year;

13 and

14 (iii) for fiscal year 1998, an amount

15 equal to 0.30 percent of the aggregate

16 original principal balance of debt securities

17 issued by such enterprise during such year.

18 (C) CONNIE LEE.—For the College Con19 struction Loan Insurance Association—

20 (i) for fiscal year 1996, an amount

21 equal to 0.10 percent of the aggregate

22 original principal balance of bonds insured

23 or reinsured by such enterprise during

24 such year;
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1 (ii) for fiscal year 1997, an amount

2 equal to 0.20 percent of the aggregate

3 original principal balance of bonds insured

4 or reinsured by such enterprise during

5 such year; and

6 (iii) for fiscal year 1998, an amount

7 equal to 0.30 percent of the aggregate

8 original principal balance of bonds insured

9 or reinsured by such enterprise during

10 such year.

11 (3) CALCULATION.—The Secretary of the

12 Treasury shall caclulate the amount of the fee under

13 this subsection for each fiscal year following the con14 clusion of such fiscal year and shall consult with the

15 Director of the Office of Federal Housing Enterprise

16 Oversight in determining the amount of the fees

17 under paragraph (2)(A).

18 (4) DEFINITION.—For purposes of this sub19 section, the term ‘‘government sponsored enterprise’’

20 means—

21 (A) the College Construction Loan Insur22 ance Association;

23 (B) the Federal Home Loan Mortgage

24 Corporation;
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1 (C) the Federal National Mortgage Asso2 ciation; and

3 (D) the Student Loan Marketing Associa4 tion.

5 (b) GOVERNMENT NATIONAL MORTGAGE ASSOCIA6 TION GUARANTEE FEES.—Section 306(g)(3) of the Na7 tional Housing Act (12 U.S.C. 1721(g)(3)) is amended by

8 adding at the end the following new subparagraph:

9 ‘‘(F) Notwithstanding any other provision of this

10 paragraph, the fee charged by the Association for any

11 guarantee of the timely payment of principal or interest

12 on any security or note based on or backed by mortgages

13 shall be—

14 ‘‘(i) 10 basis points for any guarantee made

15 during fiscal year 1997; and

16 ‘‘(ii) 15 basis points for any guarantee made

17 after fiscal year 1997.’’.

18 (c) CONFORMING AMENDMENTS.—

19 (1) FANNIE MAE.—The first sentence of section

20 304(f) of the Federal National Mortgage Association

21 Charter Act (12 U.S.C. 1719(f)) is amended by in22 serting ‘‘and section 7496(a) of the Restructuring a

23 Limited Government Act,’’ after ‘‘this Act’’.

24 (2) FREDDIE MAC.—Section 306(i) of the Fed25 eral Home Loan Mortgage Corporation Act (12
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1 U.S.C. 1455(i)) is amended by striking ‘‘sections

2 303(c) and 1316(c) of this Act’’ and inserting ‘‘sub3 section (c) of this section, section 303(c) of this Act,

4 and section 7406(a) of the Restructuring a Limited

5 Government Act, and’’

6 SEC. 7407. EXTENSION OF SPECTRUM AUCTION AUTHORITY

7 OF THE FEDERAL COMMUNICATIONS COM8 MISSION.

9 Section 309(j)(11) of the Communications Act of

10 1934 (47 U.S.C. 309(j)(11)) is amended by striking ‘‘Sep11 tember 30, 1998’’ and inserting ‘‘September 30, 2000’’.

12 SEC. 7408. BUREAU OF CENSUS.

13 Amounts made available for salaries and expenses for

14 the Bureau of the Census for fiscal years 1996 through

15 2000 may not exceed $128,286,000 for each of such fiscal

16 years. For the purposes of this section, the term ‘‘salaries

17 and expenses’’ means the salaries and expenses for which

18 amounts were appropriated for fiscal year 1995 under the

19 appropriations account numbered 13–0401–0–1–376 and

20 identified as available budget authority under item 43.00.

21 SEC. 7409. COPYRIGHT OFFICE.

22 Amounts made available for salaries and expenses for

23 the Copyright Office of the Library of Congress for fiscal

24 years 1996 through 2000 may not exceed $9,446,000 for

25 each of such fiscal years. For the purposes of this section,
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1 the term ‘‘salaries and expenses’’ means the salaries and

2 expenses for which amounts were appropriated for fiscal

3 year 1995 under the appropriations account numbered

4 03–0102–0–1–376 and identified as available budget au5 thority under item 43.00.

6 TITLE VIII—TRANSPORTATION

7 Subtitle A—Air Transportation

8 Program Reform

9 SEC. 8001. AIR TRAFFIC CONTROL CORPORATION.

10 (a) SHORT TITLE.—This section may be cited as the

11 ‘‘Air Traffic Control Service Privatization and Improve12 ment Act of 1995’’.

13 (b) ESTABLISHMENT OF CORPORATION.—

14 (1) IN GENERAL.—There is established a non15 profit corporation, to be known as the Airways Cor16 poration, which—

17 (A) shall operate the air traffic control sys18 tem of the United States after the completion

19 of transfers of air traffic control facilities, per20 sonnel, and equipment under subsection (j);

21 (B) except as provided in paragraph (2),

22 shall not be an agency or establishment of the

23 United States Government;
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1 (C) shall have its principal office in the

2 District of Columbia and is deemed to be a resi3 dent thereof; and

4 (D) to the extent consistent with this Act,

5 shall be subject to the District of Columbia

6 Business Corporation Act (D.C. Code, Section

7 29–301 et seq.).

8 (2) WAR OR NATIONAL EMERGENCY.—

9 (A) TRANSFER OF FUNCTIONS.—In the

10 event of a declared war or national emergency,

11 the President may by Executive order tempo12 rarily transfer any functions, personnel, prop13 erty, records, funds, and other matters relating

14 to the Airways Corporation to the Department

15 of Defense.

16 (B) DEVELOPMENT OF PLANS.—The board

17 of directors of the Airways Corporation, in con18 sultation with the Secretary of Defense, shall

19 develop plans for the effective discharge of the

20 functions of the Corporation in the event of a

21 declared war or national emergency.

22 (c) INCORPORATION.—

23 (1) APPOINTMENT OF INCORPORATORS.—The

24 President shall appoint 5 incorporators, by and with

25 the advice and consent of the Senate, who shall
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1 serve as the initial board of directors of the Airways

2 Corporation until the first annual meeting of stock3 holders, or until a board of directors is elected in ac4 cordance with subsection (e), whichever is later.

5 (2) FUNCTIONS OF INCORPORATORS.—The

6 incorporators appointed under this subsection

7 shall—

8 (A) subject to approval by the President,

9 draft and file articles of incorporation for the

10 Airways Corporation, draft the initial bylaws of

11 the Corporation, and take any other actions

12 necessary to the establishment and initial oper13 ation of the Corporation;

14 (B) arrange for an initial stock offering in

15 accordance with subsection (d);

16 (C) establish initial criteria for determining

17 what is a business aircraft for purposes of sub18 section (d)(1)(C); and

19 (D) determine limits for liability insurance

20 appropriate for the Corporation to maintain in

21 order to cover its liability for actions or inac22 tions taken by or on behalf of the Corporation

23 and acquire such insurance from nongovern24 mental sources.
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1 (3) ARTICLES OF INCORPORATION.—The arti2 cles of incorporation filed by the incorporators in ac3 cordance with paragraph (2)—

4 (A) shall provide for cumulative voting

5 under section 27(d) of the District of Columbia

6 Business Corporation Act (D.C. Code, Section

7 29–327(d)); and

8 (B) may be amended, altered, changed, or

repealed by a vote of not less than 662 9 ⁄3 percent

10 of the outstanding shares of the voting capital

11 stock of the Corporation.

12 (d) ISSUANCE OF STOCK.—

13 (1) IN GENERAL.—The Airways Corporation

14 may issue and have outstanding, in such numbers

15 and amounts as it shall determine, shares of capital

16 stock consisting of 6 classes as follows:

17 (A) A class of shares to be known as Class

18 A, consisting of not more than 40 percent of all

19 shares of common stock issued by the Corpora20 tion, which may only be purchased by air car21 riers.

22 (B) A class of shares to be known as Class

23 B, consisting of not more than 20 percent of all

24 shares of common stock issued by the Corpora25 tion, which may only be purchased by persons
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•HR 1923 IH

1 who are private pilots but are not employed by

2 air carriers as pilots.

3 (C) A class of shares to be known as Class

4 C, consisting of not more than 10 percent of all

5 shares of common stock issued by the Corpora6 tion, which may only be purchased by persons

7 who are not air carriers and who own one or

8 more business aircraft.

9 (D) A class of shares to be known as Class

D, consisting of not more than 71 10 ⁄2 percent of

11 all shares of common stock issued by the Cor12 poration, which may only be purchased by per13 sons who are employed by an air carrier as pi14 lots.

15 (E) A class of shares to be known as Class

E, consisting of not more than 71 16 ⁄2 percent of

17 all shares of common stock issued by the Cor18 poration, which may only be purchased by em19 ployees of the Corporation.

20 (F) A class of shares to be known as Class

F, consisting of 71 21 ⁄2 percent of all shares of

22 common stock issued by the Corporation, which

23 shall be issued to the Secretary of Transpor24 tation on behalf of the United States.
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•HR 1923 IH

1 (G) A class of shares to be known as Class

G, consisting of 71 2 ⁄2 percent of all shares of

3 common stock issued by the Corporation, which

4 shall be issued to the Secretary of Defense on

5 behalf of the United States.

6 (2) PRICE OF FIRST ISSUE.—The shares of

7 common stock first issued by the Airways Corpora8 tion (other than those shares issued under para9 graphs (1)(F) and (1)(G)) shall be sold at a price

10 equal to not more than $100 for each share.

11 (3) VOTING RIGHTS.—

12 (A) IN GENERAL.—Each share of common

13 stock in the Airways Corporation—

14 (i) shall be vested with all voting

15 rights; and

16 (ii) shall be entitled to one vote.

17 (B) ASSIGNMENT.—A person owning one

18 or more shares of Class A, B, C, D, or E stock

19 may assign the right to vote all or part of their

20 shares to any person eligible to own shares of

21 that class of stock.

22 (4) INSPECTION AND COPYING RIGHTS.—Not23 withstanding section 45(b) of the District of Colum24 bia Business Corporation Act (D.C. Code, Section

25 29–345(b)), a stockholder of the Airways Corpora-
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•HR 1923 IH

1 tion shall have the right to inspect and copy records

2 of the Corporation pursuant to such section without

3 regard to the percentage of the Corporation’s stock

4 the stockholder holds.

5 (e) DIRECTORS AND OFFICERS.—

6 (1) BOARD OF DIRECTORS.—

7 (A) ELECTION.—The Airways Corporation

8 shall have a board of directors consisting of 15

9 individuals who are citizens of the United

10 States, elected annually as follows:

11 (i) 6 members elected by shareholders

12 owning one or more shares of Class A

13 stock.

14 (ii) 3 members elected by shareholders

15 owning one or more shares of Class B

16 stock.

17 (iii) 2 members elected by sharehold18 ers owning one or more shares of Class C

19 stock.

20 (iv) 1 member elected by shareholders

21 owning one or more shares of Class D

22 stock.

23 (v) 1 member elected by shareholders

24 owning one or more shares of Class E

25 stock.
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•HR 1923 IH

1 (vi) 1 member appointed by the Sec2 retary of Transportation.

3 (vii) 1 member appointed by the Sec4 retary of Defense.

5 (B) CHAIRMAN.—The board of directors

6 shall elect one of its members annually to serve

7 as chairman of the board of directors.

8 (C) COMPENSATION AND EXPENSES.—

9 Members of the board of directors may receive

10 compensation in accordance with rules estab11 lished by the board of directors.

12 (2) PRESIDENT OF CORPORATION AND AP13 POINTMENT OF OTHER OFFICERS.—

14 (A) APPOINTMENT.—The Airways Cor15 poration shall have a president and such other

16 officers as may be appointed by the board of di17 rectors from among persons who are citizens of

18 the United States. Persons appointed under

19 this subparagraph shall serve at the pleasure of

20 the board of directors.

21 (B) COMPENSATION.—Individuals ap22 pointed under subparagraph (B) shall be com23 pensated at rates fixed by the board of direc24 tors.
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•HR 1923 IH

1 (C) DISCLOSURE OF RECEIPT OF OTHER

2 COMPENSATION.—An officer of the Airways

3 Corporation shall disclose to the entire board of

4 directors salary from any source other than the

5 Corporation during the period of the officer’s

6 employment by the Corporation.

7 (e) POWERS.—

8 (1) IN GENERAL.—The Airways Corporation

9 may—

10 (A) plan, initiate, construct, own, manage,

11 and operate, by itself or in cooperation with

12 other entities, an air traffic control system;

13 (B) furnish, for hire, air traffic control

14 services to air transportation common carriers

15 and other operators of civil and military air16 craft;

17 (C) enter into contracts under which other

18 entities may operate individual air traffic con19 trol facilities and provide services on behalf of

20 the Corporation;

21 (D) acquire, by construction, purchase, or

22 gift, physical facilities, equipment, and devices

23 necessary to the operations of the Corporation,

24 including air traffic control and associated

25 equipment and facilities;
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•HR 1923 IH

1 (E) issue voting securities in accordance

2 with subsection (d);

3 (F) issue nonvoting securities, bonds, de4 bentures, and other certificates of indebtedness

5 as may be appropriate; and

6 (G) conduct or contract for the conduct of

7 research and development related to the oper8 ations of the Corporation and establish tech9 nical specifications of all elements of the air

10 traffic control system.

11 (2) USUAL POWERS.—To conduct activities au12 thorized by paragraph (1), the Airways Corporation

13 shall have the usual powers conferred upon a cor14 poration by the District of Columbia Business Cor15 poration Act (D.C. Code, Section 29–301 et seq.).

16 (f) FEES.—

17 (1) IN GENERAL.—The Airways Corporation

18 may establish reasonable nondiscriminatory fees for

19 the provision of air traffic control services and

20 charge such fees to air carriers and other business

21 users of such services. During the 10-year period be22 ginning on the date of the enactment of this Act, the

23 Corporation may not charge such fees to

24 nonbusiness users of such services.
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•HR 1923 IH

1 (2) REVIEW OF FEES.—The Secretary of

2 Transportation shall issue regulations not later than

3 180 days after the date of the enactment of this Act

4 for the review and appeal of fees established by the

5 Airways Corporation under paragraph (1).

6 (g) FOREIGN BUSINESS NEGOTIATIONS.—

7 (1) NEGOTIATIONS OF CORPORATION.—When8 ever the Airways Corporation enters into negotia9 tions with any foreign entity with respect to facili10 ties, operations, and services authorized by this sec11 tion to be conducted by the Corporation—

12 (A) the Corporation shall notify the Sec13 retary of State and the Secretary of Transpor14 tation regarding the initiation, conduct, and

15 foreign policy implications of such negotiations;

16 and

17 (B) the Secretary of State shall advise the

18 Corporation of relevant foreign policy consider19 ations and, upon request of the Corporation,

20 shall render such assistance as may be appro21 priate.

22 (2) NEGOTIATIONS OF SECRETARY OF STATE.—

23 The Secretary of State shall consult with the Air24 ways Corporation with respect to all negotiations
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•HR 1923 IH

1 conducted by the Secretary regarding matters which

2 relate to air traffic control.

3 (h) SANCTIONS.—

4 (1) PETITION FOR RELIEF.—Except as other5 wise prohibited by law—

6 (A) if the Airways Corporation engages in

7 any activity, or takes any action in furtherance

8 of any policy, which is inconsistent with the pol9 icy and purposes of this section; or

10 (B) if any other person—

11 (i) violates any provision of this sec12 tion;

13 (ii) obstructs or interferes with any

14 activity authorized by this section;

15 (iii) refuses, fails, or neglects to dis16 charge any duty or responsibility under

17 this section; or

18 (iv) threatens any such violation, ob19 struction, interference, refusal, failure, or

20 neglect;

21 the district court of the United States for any dis22 trict in which such Corporation or other person re23 sides or may be found shall have jurisdiction, upon

24 petition of the Attorney General of the United

25 States, to grant such equitable relief as may be nec-
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•HR 1923 IH

1 essary or appropriate to prevent or terminate such

2 activity.

3 (2) PUNISHMENT, LIABILITY, OR SANCTION

4 UNDER OTHER PROVISIONS.—Nothing contained in

5 this subsection shall be considered to relieve any per6 son of any liability, punishment, or sanction under

7 any other law.

8 (i) REPORTS.—

9 (1) CORPORATION.—During the 5-year period

10 beginning on the date of the enactment of this Act,

11 the Airways Corporation shall transmit to the Presi12 dent and Congress, annually and at such other times

13 as it considers appropriate, a comprehensive and de14 tailed report of its operations, activities, and accom15 plishments under this section.

16 (2) ADMINISTRATOR.—During the 5-year period

17 beginning on the date of the enactment of this Act,

18 the Administrator shall transmit to Congress, annu19 ally and at such other times as the Administrator

20 considers appropriate, an evaluation of the capital

21 structure of the Airways Corporation so as to assure

22 Congress that such structure is consistent with the

23 most efficient and economical operation of the Cor24 poration.
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•HR 1923 IH

1 (j) TRANSFER OF FACILITIES, PERSONNEL, AND

2 EQUIPMENT OF CIVIL AIR TRAFFIC CONTROL SYSTEM.—

3 (1) IN GENERAL.—Not later than 180 days

4 after the date the Senate approves the appointments

5 of the President under subsection (c)(1), the Sec6 retary of Transportation shall take such action as

7 may be necessary—

8 (A) to transfer to the Airways Corporation

9 all right, title, and interest of the United States

10 in, and all control of the United States over, all

11 facilities and equipment under the jurisdiction

12 of the United States on the date of the enact13 ment of this Act, which are part of the air traf14 fic control system, including the air route traf15 fic centers, terminal radar control centers, VHF

16 omnidirectional radio stations, long-range and

17 terminal radar systems, flight service stations,

18 and related facilities and equipment;

19 (B) to transfer all right of the United

20 States in airport control towers, landing aids,

21 and landing slots to owners of the airport where

22 such towers and aids are located and to which

23 such landing slots relates;

24 (C) to transfer to the Airways Corporation

25 all personnel who are employed in operating,
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•HR 1923 IH

1 maintaining, or managing the air traffic control

2 system on the date of the enactment of this

3 Act; and

4 (D) except as provided in paragraph (2),

5 to terminate the civil service status of air traffic

6 control personnel.

7 (2) RETIREMENT BENEFITS.—

8 (A) IN GENERAL.—Any Federal employee

9 who is transferred to the Airways Corporation

10 under this section and who, on the day before

11 the date of such transfer, is subject to chapter

12 83 or 84 of title 5, United States Code, shall,

13 so long as that individual remains continuously

14 employed by the Airways Corporation, remain

15 subject to such chapter.

16 (B) SERVICE TO BE TREATED AS ‘‘GOV17 ERNMENT EMPLOYMENT’’.—Any continuous

18 employment described in subparagraph (A)

19 shall be considered to be employment by the

20 Government of the United States for purposes

21 of such chapter 83 or 84, as applicable.

22 (C) CONTRIBUTIONS.—The Airways Cor23 poration shall be considered, for those individ24 uals to whom this paragraph applies, the em25 ploying agency for purposes of such chapter 83
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•HR 1923 IH

1 or 84, as applicable, and shall be responsible for

2 making all appropriate employer contributions

3 thereunder (which, in the case of employer con4 tributions to the Civil Service Retirement and

5 Disability Fund, shall be as determined by the

6 Office of Personnel Management).

7 (k) LIMITATIONS ON FUNDING.—

8 (1) NO APPROPRIATED FUNDS.—The Airways

9 Corporation shall not receive any funds from the

10 Federal Government beyond fees paid for use of the

11 air traffic control system by the Federal Govern12 ment.

13 (2) NO BORROWING FROM TREASURY.—The

14 Airways Corporation may not borrow money from

15 the Treasury of the United States or receive feder16 ally guaranteed loans.

17 (l) LIABILITY OF CORPORATION.—Notwithstanding

18 any other provision of law, the Airways Corporation is im19 mune from all tort liability with respect to the provision

20 of air traffic control services which is not based on fault.

21 (m) NONLIABILITY OF AIR TRAFFIC CONTROL22 LERS.—A person employed by the Airways Corporation as

23 an air traffic controller may not be held personally liable

24 by any Federal or State court for negligent actions or in25 actions (other than actions or inactions that constitute
491

•HR 1923 IH

1 gross negligence or that demonstrate a greater disregard

2 of a duty of care than gross negligence, including inten3 tional tortious conduct) of such person in carrying out any

4 duty of such person for the Corporation. The Corporation

5 may be held liable for such actions or inactions.

6 (n) REDUCTION IN TAX ON TRANSPORTATION OF

7 PERSONS BY AIR.—

8 (1) IN GENERAL.—Subsections (a) and (b) of

9 section 4261 of the Internal Revenue Code of 1986

10 (relating to transportation of persons by air) are

11 each amended by striking ‘‘10 percent’’ and insert12 ing ‘‘3.5 percent’’.

13 (2) EFFECTIVE DATE.—The amendments made

14 by paragraph (1) shall apply to transportation be15 ginning after the 30th day following the date of the

16 enactment of this Act but shall not apply to

17 amounts paid on or before such 30th day.

18 (o) DEFINITIONS.—As used in this section—

19 (1) the terms ‘‘airport’’ and ‘‘public-use air20 port’’ have the meaning such terms have under sec21 tion 47102 of title 49, United States Code;

22 (2) the terms ‘‘air carrier’’, ‘‘aircraft’’, ‘‘air

23 transportation’’, ‘‘civil aircraft’’, ‘‘citizen of the

24 United States’’, ‘‘person’’, and ‘‘United States’’ have
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•HR 1923 IH

1 the meaning such terms have under section 40102

2 of title 49, United States Code;

3 (3) the term ‘‘Administration’’ means the Fed4 eral Aviation Administration; and

5 (4) the term ‘‘Administrator’’ means the Ad6 ministrator of the Federal Aviation Administration.

7 (p) CONFORMING AMENDMENTS.—Not later than 1

8 year after the date of the enactment of this Act, the Sec9 retary of Transportation shall submit to Congress such

10 conforming amendments to the laws of the United States

11 as the Secretary of Transportation determines are nec12 essary to implement this section.

13 SEC. 8002. OBLIGATION LIMITATION FOR AIRPORT IM14 PROVEMENT PROGRAM.

15 Section 47104 of title 49, United States Code, is

16 amended be adding at the end the following:

17 ‘‘(d) OBLIGATION LIMITATION.—Notwithstanding

18 any other provision of law, the Secretary may not incur

19 obligations under subsection (b) of this section in any of

20 fiscal years 1996 through 2000 which exceed 75 percent

21 of the obligations incurred under subsection (b) in fiscal

22 year 1995.’’.
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1 SEC. 8003. TERMINATION OF ESSENTIAL AIR SERVICE PRO2 GRAM.

3 Sections 41737(d)(2) and 41742 of title 49, United

4 States Code, are each amended by striking ‘‘1998’’ and

5 inserting ‘‘1995’’.

6 SEC. 8004. OBLIGATION LIMITATION FOR FAA OPERATIONS.

7 The total of obligations incurred in each of fiscal

8 years 1996, 1997, 1998, 1999, and 2000 for expenses of

9 the Federal Aviation Administration described under the

10 heading ‘‘Operations’’ in title I of the Department of

11 Transportation and Related Agencies Appropriations Act,

12 1995 (Public Law 103–331; 108 Stat. 2474–2475) may

13 not exceed $4,581,000 per fiscal year.

14 SEC. 8005. REPEAL OF AUTHORIZATIONS FOR THE AIRWAY

15 SCIENCE PROGRAM, COLLEGIATE TRAINING

16 INITIATIVE, AND AIR CARRIER MAINTE17 NANCE TECHNICIAN TRAINING FACILITY

18 GRANT PROGRAM.

19 (a) AIRWAY SCIENCE PROGRAM.—All authority for—

20 (1) the Secretary of Transportation to enter

21 into grant agreements with universities or colleges

22 having an airway science curriculum recognized by

23 the Federal Aviation Administration, to conduct

24 demonstration projects in the development, advance25 ment, or expansion of airway science programs; and
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•HR 1923 IH

1 (2) the Federal Aviation Administration to

2 enter into competitive grant agreements with institu3 tions of higher education having airway science cur4 ricula, and all authorizations to appropriate for such

5 purposes, as enacted under the head, ‘‘Federal Avia6 tion Administration, Facilities and Equipment’’, in

7 the Department of Transportation and Related

8 Agencies Appropriations Acts for fiscal years ending

9 before October 1, 1993;

10 is repealed.

11 (b) COLLEGIATE TRAINING INITIATIVE.—Section

12 362 of the Department of Transportation and Related

13 Agencies Appropriations Act, 1993 (Public Law 102–

14 388), is repealed, except that the Administrator of the

15 Federal Aviation Administration may continue to convert

16 appointment of persons who have been appointed pursuant

17 to such section prior to the effective date of this Act from

18 the excepted service to a career conditional or career ap19 pointment in the competitive civil service, pursuant to sub20 section (c) of such section.

21 (c) AIR CARRIER MAINTENANCE TECHNICIAN

22 TRAINING FACILITY GRANT PROGRAM.—Section 119 of

23 Public Law 102–581 (49 U.S.C. App. 1354 note) is re24 pealed.
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1 SEC. 8006. FEES FOR USE OF SLOTS AT HIGH DENSITY AIR2 PORTS.

3 Section 41714 of title 49, United States Code, is

4 amended—

5 (1) by redesignating subsection (h) as sub6 section (i); and

7 (2) by inserting after subsection (g) the follow8 ing:

9 ‘‘(h) FEES.—Not later than September 1, 1995, the

10 Secretary shall establish fees for the use of slots at high

11 density airports in an amount sufficient to result in the

12 collection of $300,000,000 per fiscal year for each fiscal

13 year beginning after September 30, 1995. The Secretary

14 shall collect such fees in fiscal year 1996 and each fiscal

15 year thereafter and shall deposit the amounts collected in

16 the general fund of the Treasury.’’.

17 Subtitle B—Highway

18 Transportation Program Reform

19 SEC. 8101. TERMINATION OF INTERSTATE COMMERCE COM20 MISSION.

21 (a) IN GENERAL.—There are transferred to the Sec22 retary, effective January 1, 1994, all functions of the

23 Commission.

24 (b) AUTHORITY OF OFFICE OF MANAGEMENT AND

25 BUDGET.—The Director of the Office of Management and

26 Budget, in consultation with the Commission and the Sec-
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1 retary, may make such determinations as may be nec2 essary with regard to the functions transferred by this sec3 tion, and to make such additional incidental dispositions

4 of assets, liabilities, contracts, property, and records, as

5 may be necessary to carry out the provisions of this sec6 tion. The unobligated funds of the Commission shall not

7 be transferred to the Department of Transportation in

8 order to carry out the transfer of functions under this sec9 tion, and the number of fulltime employee positions within

10 the Department of Transportation shall not be increased

11 as a result of such transfer of functions.

12 (c) JOINT PLANNING FOR TRANSFER.—The Chair13 man of the Commission and the Secretary shall, beginning

14 as soon as practicable after the date of enactment of this

15 section, jointly plan for the orderly transfer of functions

16 under this section.

17 (d) INTERIM USE OF INTERSTATE COMMERCE COM18 MISSION PERSONNEL.—Prior to January 1, 1994, and

19 with the consent of the Commission, the Secretary may

20 use the services of officers, employees, and other personnel

21 of the Commission under such terms and conditions as

22 will reasonably facilitate the orderly transfer of functions

23 under this section.

24 (e) SAVINGS PROVISIONS.—
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1 (1) IN GENERAL.—All orders, determinations,

2 rules, regulations, permits, contracts, certificates, li3 censes, and privileges—

4 (A) which have been issued, made, grant5 ed, or allowed to become effective by any agency

6 or official thereof, or by a court of competent

7 jurisdiction, in the performance of any function

8 which is transferred by this section to the Sec9 retary from the Commission; and

10 (B) which are in effect immediately before

11 the transfer of functions by this section,

12 shall continue in effect according to their terms until

13 modified, terminated, superseded, set aside, or re14 voked in accordance with law by the Secretary or

15 any other duly authorized official, by any court of

16 competent jurisdiction, or by operation of law.

17 (2) CONTINUATION OF PROCEEDINGS.—The

18 transfer of functions by this section shall not affect

19 any proceedings, including rulemaking proceedings,

20 or any application for any license, permit, or certifi21 cate, pending before the Commission immediately

22 before the transfer takes effect. Such proceedings

23 and applications shall be continued at the Depart24 ment of Transportation. Orders shall be issued in

25 such proceedings, and appeals shall be taken there-
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1 from, as if this section had not been enacted; and

2 orders issued in any such proceedings shall continue

3 in effect until modified, terminated, superseded, or

4 revoked by the Secretary of Transportation, by a

5 court of competent jurisdiction, or by operation of

6 law. Nothing in this subsection shall be deemed to

7 prohibit the discontinuance or modification of any

8 such proceeding under the same terms and condi9 tions and to the same extent that such proceeding

10 could have been discontinued or modified if this sec11 tion had not been enacted.

12 (3) EFFECT ON PENDING CIVIL ACTIONS.—Ex13 cept as provided in paragraph (5)—

14 (A) the transfer of any function under this

15 section shall not affect any civil action relating

16 to such function which is commenced prior to

17 the date the transfer takes effect; and

18 (B) in all such actions, proceedings shall

19 be had, appeals taken, and judgments rendered,

20 in the same manner and effect as if this section

21 had not been enacted.

22 (4) NONABATEMENT OF ACTIONS.—No action

23 or other proceeding commenced by or against any

24 officer in that officer’s official capacity as an officer

25 of the Commission shall abate by reason of the
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1 transfer of any function under this section. No cause

2 of action by or against the Commission, or by or

3 against any officer thereof in that officer’s official

4 capacity, shall abate by reason of the transfer of any

5 function under this section.

6 (5) JUDICIAL ADMINISTRATIVE PROVISION.—If

7 immediately before the transfer of functions by this

8 section the Commission or any officer thereof in that

9 officer’s official capacity is a party to an action re10 lating to a function transfer by this section, then

11 such action shall be continued with the Secretary or

12 other appropriate official of the Department of

13 Transportation substituted or added as a party.

14 (6) REFERENCES.—With respect to any func15 tion transferred by this section and performed on or

16 after the effective date of the transfer, reference in

17 any Federal law to the Interstate Commerce Com18 mission or the Commission (insofar as such term re19 fers to the Interstate Commerce Commission), or to

20 any officer or office thereof, shall be deemed to refer

21 to the Department of Transportation, or other offi22 cial or component of the Department of Transpor23 tation in which such function vests.

24 (7) EXERCISE OF FUNCTIONS BY SEC25 RETARY.—In the exercise of any function trans-
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1 ferred by this section, the Secretary shall have the

2 same authority as that vested in the Commission

3 with respect to such function immediately preceding

4 its transfer, and actions of the Secretary shall have

5 the same force and effect as when exercised by the

6 Commission. Orders and actions of the Secretary in

7 the exercise of the functions transferred under this

8 section shall be subject to judicial review to the same

9 extent and in the same manner as if such orders and

10 actions had been by the Commission in the exercise

11 of such functions immediately preceding their trans12 fer. Any statutory requirements relating to notice,

13 hearings, actions upon the record, or administrative

14 review that apply to any functions transferred by

15 this section shall apply to the exercise of such func16 tions by the Secretary.

17 (f) REPORTS.—No later than July 1, 1994, the Sec18 retary shall submit to the appropriate committees of Con19 gress a report on the functions transferred from the Com20 mission to the Department of Transportation under this

21 section. The report shall include—

22 (1) an assessment of benefits compared to costs

23 associated with each of these functions, both with re24 spect to persons affected directly and to the public

25 generally;
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1 (2) recommendations for the elimination of

2 functions identified as redundant, or substantially

3 the same as functions or services which are per4 formed by the Department of Transportation or

5 other public or private organizations prior to the

6 transfer of functions under this section; and

7 (3) recommendations to modify or eliminate

8 those functions that do not provide substantial eco9 nomic or safety benefits to the general public.

10 (g) CONFORMING AMENDMENTS.—

11 (1) EXECUTIVE LEVEL PAY RATES.—

12 (A) Section 5314 of title 5, United States

13 Code, is amended by striking ‘‘Chairman, Inter14 state Commerce Commission.’’.

15 (B) Section 5315 of title 5, United States

16 Code, is amended by striking ‘‘Members, Inter17 state Commerce Commission.’’.

18 (2) TERMINATION OF COMMISSION.—Sections

19 10301 through 10308 of title 49, United States

20 Code, are repealed.

21 (3) EFFECTIVE DATE.—The amendments made

22 by this section shall become effective on January 1,

23 1994.

24 (h) DEFINITIONS.—In this section—
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1 (1) the term ‘‘Commission’’ means the Inter2 state Commerce Commission;

3 (2) the term ‘‘function’’ means a function,

4 power, or duty; and

5 (3) the term ‘‘Secretary’’ means the Secretary

6 of Transportation.

7 (i) RESCISSION AND TRANSFER OF FUNDS.—Of the

8 funds made available under the heading ‘‘Interstate Com9 merce Commission—Salaries and Expenses’’ in the De10 partment of Transportation and Related Agencies Appro11 priations Act, 1994 (Public Law 103–122)—

12 (1) $18,000,000 is rescinded; and

13 (2) $15,000,000 shall be transferred to and

14 merged with the appropriation in such Act for ‘‘DE15 PARTMENT OF TRANSPORTATION—OFFICE

16 OF THE SECRETARY—Immediate Office of the

17 Secretary’’.

18 SEC. 8102. CUSTOMS TONNAGE FEES.

19 (a) INCREASE IN FEES.—Section 36 of the Act of

20 August 5, 1909 (46 App. 121, 36 Stat. 111), is amend21 ed—

22 (1) by striking ‘‘9 cents per ton, not to exceed

23 in the aggregate 45 cents per ton in any one year,

24 for fiscal years 1991, 1992, 1993, 1994, 1995,

25 1996, 1997, 1998’’ and inserting ‘‘24 cents per ton,
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1 not to exceed in the aggregate $1.20 per ton in any

2 one year, for fiscal years 1996, 1997, 1998, 1999,

3 and 2000’’; and

4 (2) by striking ‘‘27 cents per ton, not to exceed

5 $1.35 per ton per annum, for fiscal years 1991,

6 1992, 1993, 1994, 1995, 1996, 1997, 1998’’ and in7 serting ‘‘71 cents per ton, not to exceed $3.55 per

8 ton per annum, for fiscal years 1996, 1997, 1998,

9 1999, and 2000’’.

10 (b) CONFORMING AMENDMENT.—The Act entitled

11 ‘‘An Act concerning tonnage duties on vessels entering

12 otherwise than by sea’’, approved March 8, 1910 (36 Stat.

13 234; 46 App. U.S.C. 132), is amended by striking ‘‘9 cents

14 per ton, not to exceed in the aggregate 45 cents per ton

15 in any one year, for fiscal years 1991, 1992, 1993, 1994,

16 1995, 1996, 1997, and 1998’’ and inserting ‘‘24 cents per

17 ton, not to exceed in the aggregate $1.20 per ton in any

18 one year, for fiscal years 1996, 1997, 1998, 1999, and

19 2000’’.

20 SEC. 8103. FEES FOR OPERATION OF FOREIGN REPAIR STA21 TIONS.

22 Not later than September 1, 1995, the Secretary of

23 Transportation shall establish fees for maintenance and

24 repairs carried out on aircraft not owned or operated by

25 the United States, and engines and other parts and com-
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1 ponents of such aircraft, at foreign repair stations oper2 ated by the Federal Aviation Administration in an amount

3 sufficient to cover the cost of operating such stations in

4 each fiscal year beginning after September 30, 1995. The

5 Secretary shall collect such fees in fiscal year 1996 and

6 each fiscal year thereafter and shall deposit the amounts

7 collected in the general fund of the Treasury.

8 SEC. 8104. ELIMINATION OF FUNDING FOR HIGHWAY DEM9 ONSTRATION PROJECTS.

10 (a) REPEAL OF AUTHORIZATION OF APPROPRIA11 TIONS.—Sections 1103(b), 1104(b), 1105(f), 1106(a)(2),

12 1106(b)(2), 1107(b), and 1108(b) of the Intermodal Sur13 face Transportation Efficiency Act of 1991 (105 Stat.

14 2027–2063) are each amended by striking ‘‘through

15 1997’’ and inserting ‘‘through 1995’’.

16 (b) CONFORMING AMENDMENTS.—Sections 1103(c),

17 1104(c), 1105(g)(2), 1106(a)(3), 1106(b)(3), 1107(c),

18 and 1108(c) of such Act are each amended by striking

19 ‘‘1995, 1996, and 1997’’ and inserting ‘‘and 1995’’.

20 Subtitle C—Rail Transportation

21 Program Reform

22 SEC. 8201. AMTRAK.

23 Section 24104(a) of title 49, United States Code, is

24 amended to read as follows:
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1 ‘‘(a) IN GENERAL.—There are authorized to be ap2 propriated to the Secretary of Transportation—

3 ‘‘(1) $612,000,000 for fiscal year 1996;

4 ‘‘(2) $612,000,000 for fiscal year 1997;

5 ‘‘(3) $612,000,000 for fiscal year 1998;

6 ‘‘(4) $303,000,000 for fiscal year 1999; and

7 ‘‘(5) $303,000,000 for fiscal year 2000,

8 for the benefit of Amtrak for capital expenditures under

9 this part, operating expenses, and payments described in

10 subsection (c)(1)(A) through (C).’’.

11 SEC. 8202. ELIMINATION OF FUNDING FOR MAGLEV PROTO12 TYPE DEVELOPMENT PROGRAM.

13 (a) IN GENERAL.—Section 1036(d) of the Intermodal

14 Surface Transportation Efficiency Act of 1991 (49 U.S.C.

15 309 note; 105 Stat. 1986) is amended—

16 (1) in paragraph (1) by striking ‘‘the following’’

17 and all that follows through ‘‘DEMONSTRATION PRO18 GRAM.—For’’ and inserting ‘‘for’’; and

19 (2) in paragraph (2) by striking subparagraph

20 (A) and by redesignating subparagraphs (B) and (C)

21 as subparagraphs (A) and (B), respectively.

22 (b) RESCISSION OF FUNDS.—Of the funds made

23 available under the heading ‘‘Federal Railroad Adminis24 tration—Railroad Research and Development’’ in the De25 partment of Transportation and Related Agencies Appro-
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1 priations Act, 1994 (Public Law 103–122), $20,000,000

2 is rescinded, to be derived from magnetic levitation re3 search and analysis activities.

4 SEC. 8203. LOCAL RAIL FREIGHT ASSISTANCE.

5 Section 22108(a)(3) of title 49, United States Code,

6 is amended by striking ‘‘under this subsection to the Sec7 retary for any period after September 30, 1994’’ and in8 serting in lieu thereof ‘‘to the Secretary for any period

9 after September 30, 1995’’.

10 SEC. 8204. REDUCTION AND MODIFICATION OF BOATING

11 SAFETY GRANTS.

12 (a) TRANSFER OF AMOUNTS FOR STATE BOATING

13 SAFETY PROGRAMS.—

14 (1) TRANSFERS.—Section 4(b) of the Act of

15 August 9, 1950 (16 U.S.C. 777c(b)), is amended to

16 read as follows:

17 ‘‘(b)(1) Of the balance of each annual appropriation

18 remaining after making the distribution under subsection

19 (a), an amount equal to $40,000,000 for fiscal year 1996,

20 $55,000,000 for fiscal year 1997, and $69,000,000 for

21 each of fiscal years 1998 and 1999, shall, subject to para22 graph (2), be used as follows:

23 ‘‘(A) A sum equal to $10,000,000 of the

24 amount available for each of fiscal years 1996

25 through 1999 shall be available for use by the Sec-
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1 retary of the Interior for grants under section

2 5604(c) of the Clean Vessel Act of 1992. Any por3 tion of such a sum available for a fiscal year that

4 is not obligated for those grants before the end of

5 the following fiscal year shall be transferred to the

6 Secretary of Transportation and shall be expended

7 by the Secretary of Transportation for State rec8 reational boating safety programs under section

9 13106 of title 46, United States Code.

10 ‘‘(B) A sum equal to $30,000,000 of the

11 amount available for fiscal year 1996, $45,000,000

12 of the amount available for fiscal year 1997, and

13 $59,000,000 of the amount available for each of fis14 cal years 1998 and 1999, shall be transferred to the

15 Secretary of Transportation and shall be expended

16 by the Secretary of Transportation for State rec17 reational boating safety programs under section

18 13106 of title 46, United States Code.

19 Any portion of such a sum available for a fiscal year that

20 is not obligated for those grants before the end of the fol21 lowing fiscal year shall be transferred to the Secretary of

22 Transportation and shall be expended by the Secretary of

23 Transportation for State recreational boating safety pro24 grams under section 13106 of title 46, United States

25 Code.
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1 ‘‘(2)(A) The amount transferred under paragraph

2 (1)(B) for a fiscal year shall be reduced by the lesser of—

3 ‘‘(i) the amount appropriated to the Secretary

4 of Transportation for that fiscal year to carry out

5 the purposes of section 13106 of title 46, United

6 States Code, from the Boat Safety Account in the

7 Aquatic Resources Trust Fund established under

8 section 9504 of the Internal Revenue Code of 1986;

9 or

10 ‘‘(ii) $35,000,000; or

11 ‘‘(iii) for fiscal year 1996 only, $30,000,000.

12 ‘‘(B) The amount of any reduction under subpara13 graph (A) shall be apportioned among the several States

14 under subsection (d) by the Secretary of the Interior.’’.

15 (2) CONFORMING AMENDMENT.—Section

16 5604(c)(1) of the Clean Vessel Act of 1992 (33

17 U.S.C. 1322 note) is amended by striking ‘‘section

18 4(b)(2) of the Act of August 9, 1950 (16 U.S.C.

19 777c(b)(2), as amended by this Act)’’ and inserting

20 ‘‘section 4(b)(1) of the Act of August 9, 1950 (16

21 U.S.C. 777c(b)(1))’’.

22 (3) LIMITATION ON OTHER DISTRIBUTION.—

23 Notwithstanding any other provision of law, for fis24 cal year 1996, of the amount appropriated in ac25 cordance with section 3 of the Act of August 9,
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1 1950 (16 U.S.C. 777b), $20,000,000 shall be ex2 cluded from the total amount subject to the 18 per3 cent calculation of section 4(a) of such Act (16

4 U.S.C. 777c(a)).

5 (b) EXPENDITURE OF AMOUNTS FOR STATE REC6 REATIONAL BOATING SAFETY PROGRAMS.—Section

7 13106 of title 46, United States Code, is amended—

8 (1) in subsection (a)(1) by striking the first

9 sentence and inserting the following: ‘‘Subject to

10 paragraph (2), the Secretary may expend under con11 tracts with States under this chapter in each fiscal

12 year for State recreational boating safety programs

13 an amount equal to the sum of the amount appro14 priated from the Boat Safety Account for that fiscal

15 year plus the amount transferred to the Secretary

16 under section 4(b)(1) of the Act of August 9, 1950

17 (16 U.S.C. 777c(b)(1)) for that fiscal year.’’; and

18 (2) by amending subsection (c) to read as fol19 lows:

20 ‘‘(c) For expenditure under this chapter for State rec21 reational boating safety programs there are authorized to

22 be appropriated to the Secretary of Transportation from

23 the Boat Safety Account established under section 9504

24 of the Internal Revenue Code of 1986 (26 U.S.C. 9504)

25 not more than $35,000,000 each fiscal year.’’.
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1 Subtitle D—Miscellaneous

2 Transportation Program Reform

3 SEC. 8301. FEDERAL AID FOR MASS TRANSIT.

4 (a) REDUCED FEDERAL SHARE.—

5 (1) COMPREHENSIVE PLANNING.—Section

6 5303(h)(5) of title 49, United States Code, is

7 amended by striking ‘‘80’’ and inserting ‘‘50’’.

8 (2) BLOCK GRANTS.—Section 5307(e) of such

9 title is amended by striking ‘‘80’’ and inserting

10 ‘‘50’’.

11 (3) DISCRETIONARY GRANT PROGRAM.—Section

12 5309(h) of such title is amended by striking ‘‘80’’

13 and inserting ‘‘50’’.

14 (4) RURAL PROGRAM.—Section 5311(g)(2) of

15 such title is amended by striking ‘‘80’’ and inserting

16 ‘‘50’’.

17 (5) TRAINING PROGRAMS.—Section 5312(c)(3)

18 of such title is amended by striking ‘‘75’’ and insert19 ing ‘‘50’’.

20 (6) NATIONAL MASS TRANSPORTATION INSTI21 TUTE.—Section 5315(d) of such title is amended by

22 striking ‘‘80’’ and inserting ‘‘50’’.

23 (7) UNIVERSITY RESEARCH INSTITUTES.—Sec24 tion 5316(f) of such title is amended by inserting

25 before the period at the end the following: ‘‘; except
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1 that the Federal share of the costs of activities con2 ducted with a grant under this section shall be 50

3 percent’’.

4 (8) UNIVERSITY TRANSPORTATION CENTERS.—

5 Section 5317(b)(5)(C) of such title is amended by

6 striking ‘‘80’’ and inserting ‘‘50’’.

7 (9) BICYCLE FACILITIES.—Section 5319 of

8 such title is amended by striking ‘‘90’’ and inserting

9 ‘‘50’’.

10 (10) SUSPENDED LIGHT RAIL SYSTEM TECH11 NOLOGY PILOT PROJECT.—Section 5320(i) of such

12 title is amended by striking ‘‘80’’ and inserting

13 ‘‘50’’.

14 (11) ACQUISITION OF EQUIPMENT UNDER THE

15 CLEAN AIR AND AMERICANS WITH DISABILITIES

16 ACTS.—Section 5323(i) of such title is amended by

17 striking ‘‘90’’ and inserting ‘‘50’’.

18 (12) PROJECT MANAGEMENT OVERSIGHT.—Sec19 tion 5327(c)(3) of such title is amended by striking

20 ‘‘the entire’’ and inserting ‘‘50 percent of the’’.

21 (b) ELIMINATION OF OPERATING ASSISTANCE.—

22 (1) BLOCK GRANTS.—Section 5307 of such title

23 is amended—
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1 (A) in subsection (b)(1) by striking ‘‘im2 provement, and operating’’ and inserting ‘‘and

3 improvement’’;

4 (B) in subsection (b)(2) by striking ‘‘that

5 cannot be used to pay operating expenses under

6 this section’’;

7 (C) in subsection (e) by striking the second

8 sentence;

9 (D) by striking subsection (f);

10 (E) in subsection (g)(1) by striking ‘‘(ex11 cept a project for operating expenses)’’; and

12 (F) by redesignating subsections (g)

13 through (n) as subsections (f) through (m), re14 spectively.

15 (2) TRANSPORTATION FACILITIES TO MEET

16 SPECIAL NEEDS.—

17 (A) IN GENERAL.—Sections 5301(d) and

18 5310 of such title are repealed.

19 (B) CONFORMING AMENDMENTS.—Section

20 5338 of such title is amended—

21 (i) in subsection (a) by striking

22 ‘‘5310,’’ each place it appears (including

23 the subsection heading); and

24 (ii) in subsection (j) by striking para25 graph (2) and by redesignating paragraphs
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1 (3), (4), and (5) as paragraphs (2), (3),

2 and (4), respectively.

3 (3) RURAL PROGRAM.—Section 5311 of such

4 title is amended—

5 (A) in subsection (b) by striking the par6 enthetical phrase;

7 (B) in subsection (e) by striking ‘‘(1)’’ and

8 by striking paragraph (2);

9 (C) in subsection (f)(1)(D) by striking

10 ‘‘operating’’ and all that follows through ‘‘user11 side subsidies, and’’;

12 (D) in subsection (g)(2) by striking the

13 second sentence;

14 (E) by striking subsection (h); and

15 (F) by redesignating subsections (i) and (j)

16 as subsections (h) and (i), respectively.

17 (4) SUSPENDED LIGHT RAIL SYSTEM TECH18 NOLOGY PILOT PROJECT.—Section 5320 of such title

19 is amended—

20 (A) by striking the second sentence of sub21 section (e); and

22 (B) in subsection (h)—

23 (i) by striking paragraph (2); and
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1 (ii) by redesignating paragraphs (3)

2 and (4) as paragraphs (2) and (3), respec3 tively.

4 Subtitle E—Administrative Reform

5 SEC. 8401. REDUCTION IN OVERHEAD EXPENSES OF DE6 PARTMENT OF TRANSPORTATION.

7 (a) IN GENERAL.—The amount obligated by the De8 partment of Transportation during fiscal year 1996 for

9 overhead expenses shall not exceed an amount sufficient

10 to reduce outlays for such expenses during such fiscal year

11 (as compared to such outlays during fiscal year 1995) by

12 $498,000,000.

13 (b) OVERHEAD EXPENSES.—For purposes of this

14 section, the term ‘‘overhead expenses’’ means expenses

15 within the following object classifications established by

16 the Director of the Office of Management and Budget:

17 (1) 21.0 (travel and transportation of persons).

18 (2) 22.0 (transportation of things).

19 (3) 23.1 (rental payments to GSA).

20 (4) 23.3 (communications, utilities, and mis21 cellaneous charges).

22 (5) 24.0 (printing and reproduction).

23 (6) 25.1 (consulting services).

24 (7) 25.2 (other services).

25 (8) 25.5 (research and development contracts).
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1 (9) 26.0 (supplies and materials).

2 (10) 31 (equipment).

3 TITLE IX—COMMUNITY AND

4 REGIONAL DEVELOPMENT

5 Subtitle A—Housing Program

6 Reforms

7 SEC. 9001. TERMINATION OF EXPANSION OF RURAL RENT8 AL HOUSING PROGRAM.

9 Section 515 of the Housing Act of 1949 (42 U.S.C.

10 1485) is amended by inserting after subsection (g) the fol11 lowing new subsection:

12 ‘‘(h) PROHIBITION OF NEW LOANS.—After the date

13 of the enactment of the Restructuring a Limited Govern14 ment Act, the Secretary may not make or insure, or enter

15 into any commitment to make or insure, any loan under

16 this section.’’.

17 Subtitle B—Community and Re18 gional Development Program

19 Reforms

20 SEC. 9101. ELIMINATION OF FUNDING FOR ENVIRON21 MENTAL RESEARCH PROGRAMS OF TEN22 NESSEE VALLEY AUTHORITY.

23 For fiscal years beginning after September 30, 1995,

24 no amounts may be appropriated to the Tennessee Valley
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1 Authority for activities of the Authority’s environmental

2 research center and national fertilizer research center.

3 SEC. 9102. ELIMINATION OF CDBG PROGRAM.

4 (a) REPEAL.—Title I of the Housing and Community

5 Development Act of 1974 (42 U.S.C. 5301 et seq.) is here6 by repealed.

7 (b) TRANSITION.—Any amounts appropriated to

8 carry out title I of the Housing and Community Develop9 ment Act of 1974 before the date of the enactment of this

10 Act shall be used in accordance with the provisions of such

11 title as in effect immediately before the enactment of this

12 Act.

13 SEC. 9103. TERMINATION OF ECONOMIC DEVELOPMENT

14 ADMINISTRATION.

15 (a) IN GENERAL.—The Economic Development Ad16 ministration is terminated.

17 (b) REPEAL OF ACTS.—The Public Works and Eco18 nomic Development Act of 1965 (42 U.S.C. 3121 et seq.)

19 and the Local Public Works Capital Development and In20 vestment Act of 1976 (42 U.S.C. 6701 et seq.) are re21 pealed.

22 (c) CONCLUSION OF OUTSTANDING AFFAIRS.—

23 (1) IN GENERAL.—The Secretary of Commerce

24 shall provide for the conclusion of any outstanding

25 affairs of the Economic Development Administra-
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1 tion, including matters affecting the disposition of

2 personnel.

3 (2) AUTHORITY.—In carrying out this sub4 section, the Secretary of Commerce may exercise any

5 authority that was provided to the Secretary under

6 the Acts repealed by subsection (b), as such Acts

7 were in effect on the day before the effective date of

8 this section, and is necessary or appropriate to ad9 minister and fulfill the terms of any grant, contract,

10 agreement, loan, obligation, debenture, or guarantee

11 made by the Secretary pursuant to such Acts.

12 (d) EFFECT OF TERMINATION ON EXPENDITURE OF

13 FUNDS ALREADY RECEIVED.—Nothing in this section

14 may be construed to prevent the expenditure of any funds

15 received from a grant or loan under the Acts repealed by

16 subsection (b). Such funds shall be subject to such laws

17 and regulations as applied to the funds on the day before

18 the effective date of this section.

19 (e) ECONOMIC DEVELOPMENT REVOLVING FUND.—

20 (1) CONTINUATION TO FINISH BUSINESS.—The

21 Economic Development Revolving Fund established

22 by section 203 of the Public Works and Economic

23 Development Act of 1965 (42 U.S.C. 3143) shall

24 continue in existence for the following purposes:
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1 (A) COLLECTIONS AND REPAYMENTS.—To

2 receive collections and repayments in connection

3 with assistance extended under the Acts re4 pealed by subsection (b).

5 (B) PAYMENT OF OBLIGATIONS.—To pay

6 obligations and make expenditures in connec7 tion with the Acts repealed by subsection (b).

8 (2) TERMINATION OF FUND.—

9 (A) CERTIFICATION.—When, in the discre10 tion of the Secretary of Commerce, the Eco11 nomic Development Revolving Fund is no

12 longer necessary to carry out the activities

13 under paragraph (1), the Secretary of Com14 merce shall certify to the Secretary of the

15 Treasury that the Economic Development Re16 volving Fund is no longer necessary.

17 (B) TERMINATION.—Upon receipt of the

18 certification under subparagraph (A), the Sec19 retary of the Treasury shall terminate the Eco20 nomic Development Revolving Fund and deposit

21 into the general fund of the Treasury as mis22 cellaneous receipts any moneys remaining in the

23 Fund. The Secretary of the Treasury shall de24 posit into the general fund of the Treasury any

25 collections and repayments made after the ter-
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1 mination of the Economic Development Revolv2 ing Fund in connection with the Acts repealed

3 by subsection (b).

4 (f) EFFECTIVE DATE.—This section shall take effect

5 on October 1, 1995.

6 SEC. 9104. TERMINATION OF APPALACHIAN REGIONAL

7 COMMISSION.

8 (a) IN GENERAL.—The Appalachian Regional Com9 mission is terminated.

10 (b) REPEAL OF ACTS.—The Appalachian Regional

11 Development Act of 1965 (40 U.S.C. App. 1 et seq.) is

12 repealed.

13 (c) CONCLUSION OF OUTSTANDING AFFAIRS.—

14 (1) IN GENERAL.—The President shall take

15 such actions as may be necessary and appropriate to

16 conclude any outstanding affairs of the Appalachian

17 Regional Commission, including matters affecting

18 the disposition of personnel.

19 (2) AUTHORITY.—In carrying out this sub20 section, the President may exercise any authority

21 that was provided to the Appalachian Regional Com22 mission under the Appalachian Regional Develop23 ment Act of 1965, as in effect on the day before the

24 effective date of this section, and is necessary or ap25 propriate to administer and fulfill the terms of any
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1 grant, contract, loan, or other obligation entered into

2 by the Appalachian Regional Commission under such

3 Act.

4 (d) EXPENDITURE OF FUNDS.—Nothing in this sec5 tion may be construed to prevent the expenditure of any

6 funds received under the Appalachian Regional Develop7 ment Act of 1965. Such funds shall be subject to such

8 laws and regulations as applied to the funds on the day

9 before the effective date of this section.

10 (e) EFFECTIVE DATE.—This section shall take effect

11 on October 1, 1995.

12 SEC. 9105. ELIMINATION OF RURAL DEVELOPMENT LOAN

13 AND GRANT PROGRAMS.

14 (a) REPEAL OF THE RURAL ELECTRIFICATION ACT

15 OF 1936.—The Rural Electrification Act of 1936 (7

16 U.S.C. 901–950b) is hereby repealed.

17 (b) ELIMINATION OF CERTAIN PROGRAMS UNDER

18 THE CONSOLIDATED FARM AND RURAL DEVELOPMENT

19 ACT.—

20 (1) Section 304 of the Consolidated Farm and

21 Rural Development Act (7 U.S.C. 1924) is amended

22 by striking subsection (b).

23 (2) Section 306 of such Act (7 U.S.C. 1926) is

24 hereby repealed.
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1 (3) Section 306A of such Act (7 U.S.C. 1926a)

2 is hereby repealed.

3 (4) Section 306B of such Act (7 U.S.C. 1926b)

4 is hereby repealed.

5 (5) Section 306C of such Act (7 U.S.C. 1926c)

6 is hereby repealed.

7 (6) Section 310B of such Act (7 U.S.C. 1932)

8 is hereby repealed.

9 (7) Section 312(a) of such Act (7 U.S.C.

10 1942(a)) is amended in the 1st sentence—

11 (A) by striking clauses (5), (6), (8), (11),

12 (12), and (13);

13 (B) by adding ‘‘or’’ at the end of clause

14 (9);

15 (C) by striking the comma at the end of

16 clause (10) and inserting a period; and

17 (D) by redesignating clauses (7), (9), and

18 (10) as clauses (5), (6), and (7), respectively.

19 (8) Section 312 of such Act (7 U.S.C. 1942) is

20 amended by striking subsections (b), (c), and (d)

21 and redesignating subsection (e) as subsection (b).

22 (c) ELIMINATION OF CERTAIN PROGRAMS UNDER

23 THE FOOD, AGRICULTURE, CONSERVATION, AND TRADE

24 ACT OF 1990.—
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1 (1) Subtitle B of title XXIII of the Food, Agri2 culture, Conservation, and Trade Act of 1990 (7

3 U.S.C. 2007–2007e) is hereby repealed.

4 (2) Section 2322 of such Act (7 U.S.C. 1926–

5 1) is hereby repealed.

6 (3) Section 2324 of such Act (7 U.S.C. 1926

7 note) is hereby repealed.

8 (4) Section 2326 of such Act (7 U.S.C. 1926b

9 note) is amended by striking subsection (b).

10 (5) Subtitle D of title XXIII of such Act (7

11 U.S.C. 950aaa–950aaa–4 and 1932 note) is hereby

12 repealed.

13 (d) ELIMINATION OF CERTAIN PROGRAM UNDER

14 THE FOOD SECURITY ACT OF 1985.—Section 1323 of the

15 Food Security Act of 1985 (7 U.S.C. 1932 note) is hereby

16 repealed.

17 (e) CONFORMING AMENDMENTS.—

18 (1) CONSOLIDATED FARM AND RURAL DEVEL19 OPMENT ACT AMENDMENTS.—

20 (A) Section 307(a)(3) of the Consolidated

21 Farm and Rural Development Act (7 U.S.C.

22 1927(a)(3)) is amended—

23 (i) in subparagraph (A), by striking

24 ‘‘and essential community facilities’’; and

25 (ii) by striking subparagraph (C).
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1 (B) Section 307(a) of such Act (7 U.S.C.

2 1927(a)) is amended by striking paragraph (4).

3 (C) Section 307(a)(5) of such Act (7

4 U.S.C. 1927(a)(5)) is amended—

5 (i) by striking ‘‘(A) Except as pro6 vided in subparagraph (B), the’’ and in7 serting ‘‘The’’; and

8 (ii) by striking subparagraph (B).

9 (D) Section 307(a)(6)(B) of such Act (7

10 U.S.C. 1927(a)(6)(B)) is amended—

11 (i) by adding ‘‘and’’ at the end of

12 clause (i);

13 (ii) by striking clauses (ii) through

14 (vi); and

15 (iii) by redesignating clause (vii) as

16 clause (ii).

17 (E) Section 307(c) of such Act (7 U.S.C.

18 1927(c)) is amended by striking ‘‘, and for obli19 gations in connection with loans to associations

20 under section 306, shall take liens on the facil21 ity or such other security as he may determine

22 to be necessary’’.

23 (F) Section 309(g)(1) of such Act (7

24 U.S.C. 1929(g)(1)) is amended by striking ‘‘the

25 last sentence of section 306(a)(1),’’.
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1 (G) Section 309A(a) of such Act (7 U.S.C.

2 1929a(a)) is amended by inserting ‘‘(as such

3 sections were in effect before the effective date

4 of the Restructuring a Limited Government

5 Act),’’ after ‘‘312(b),’’.

6 (H) Section 309A(g) of such Act (7 U.S.C.

7 1930(g)) is amended—

8 (i) by striking paragraph (1); and

9 (ii) in paragraph (8), by striking

10 ‘‘make grants under sections 306(a) and

11 310B of this title,’’.

12 (I) Section 310A of such Act (7 U.S.C.

13 1931) is amended by striking ‘‘, the last sen14 tence of section 306(a)(1),’’.

15 (J) Section 316(a) of such Act (7 U.S.C.

16 1946(a)) is amended by striking paragraph (3).

17 (K) Section 317 of such Act (7 U.S.C.

18 1947) is amended by striking ‘‘(except section

19 312(b))’’.

20 (L) Section 333A(a) of such Act (7 U.S.C.

21 1983a(a)) is amended by striking paragraph

22 (4).

23 (M) Section 344 of such Act (7 U.S.C.

24 1994) is hereby repealed.
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1 (N) Section 353A of such Act (7 U.S.C.

2 2001a) is amended by inserting ‘‘(as in effect

3 before the effective date of the Restructuring a

4 Limited Government Act)’’ before the period.

5 (O) Section 365 of such Act (7 U.S.C.

6 2008) is hereby repealed.

7 (P) Section 366 of such Act (7 U.S.C.

8 2008a) is hereby repealed.

9 (Q) Section 367 of such Act (7 U.S.C.

10 2008b) is hereby repealed.

11 (R) Section 368 of such Act (7 U.S.C.

12 2008b) is hereby repealed.

13 (2) DEPARTMENT OF AGRICULTURE REORGA14 NIZATION ACT OF 1994 AMENDMENTS.—

15 (A) Section 233(b) of the Department of

16 Agriculture Reorganization Act of 1994 (7

17 U.S.C. 6943(b)) is amended by striking para18 graph (2) and redesignating paragraph (3) as

19 paragraph (2).

20 (B) Section 234(b) of such Act (7 U.S.C.

21 6944(b)) is amended by striking paragraphs (1)

22 and (3) and redesignating paragraphs (2), (4),

23 and (5) as paragraphs (1) through (3), respec24 tively.
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1 (3) COOPERATIVE FORESTRY ASSISTANCE ACT

2 OF 1978 AMENDMENT.—Section 10(b)(3) of the Co3 operative Forestry Assistance Act of 1978 (7 U.S.C.

4 2106(b)(3)) is amended by inserting ‘‘, as in effect

5 before the effective date of the Restructuring a Lim6 ited Government Act’’ before the period.

7 (4) AGRICULTURAL ACT OF 1970 AMEND8 MENT.—Section 901(b) of the Agricultural Act of

9 1970 (42 U.S.C. 3122(b)) is amended by inserting

10 ‘‘, as in effect before the effective date of the Re11 structuring a Limited Government Act’’ before the

12 period.

13 (5) ROBERT T. STAFFORD DISASTER RELIEF

14 AND EMERGENCY ASSISTANCE ACT AMENDMENTS.—

15 Section 310(a) of the Robert T. Stafford Disaster

16 Relief and Emergency Assistance Act (42 U.S.C.

17 5153(a)) is amended by striking paragraph (4) and

18 redesignating paragraphs (5) through (7) as para19 graphs (4) through (6), respectively.

20 (f) NO EFFECT ON EXISTING CONTRACTS AND OBLI21 GATIONS.—The amendments made by this section shall

22 not be construed to affect any right, power, or duty grant23 ed pursuant to any contract entered into or obligation

24 made before the effective date of this Act.
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1 (g) SALE OF OUTSTANDING RURAL DEVELOPMENT

2 LOANS.—

3 (1) IN GENERAL.—Notwithstanding any other

4 provision of law, not later than the end of the 3-year

5 period that begins with the effective date of this Act,

6 the Secretary of Agriculture shall sell to private in7 vestors all interests of the United States in all quali8 fied loans made before such effective date that are

9 outstanding at the time of the sale, for cash only, on

10 the most favorable terms to the Federal Government

11 that are then obtainable.

12 (2) QUALIFIED LOAN DEFINED.—As used in

13 paragraph (1), the term ‘‘qualified loan’’ means a

14 loan made or insured under—

15 (A) the Rural Electrification Act of 1936

16 (as in effect before the effective date of this

17 Act);

18 (B) section 304(b), 306, 306C, 310B, or

19 clause (5), (6), (8), (11), (12), or (13) of sub20 section (a), or subsection (b) or (c), of section

21 312, of the Consolidated Farm and Rural De22 velopment Act (as so in effect); or

23 (C) subtitle B of title XXIII, or section

24 2322 or 2324, of the Food, Agriculture, Con-
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1 servation, and Trade Act of 1990 (as so in ef2 fect).

3 Subtitle C—Administrative

4 Reforms

5 SEC. 9201. OPERATION OF INDIAN PROGRAMS.

6 Amounts made available for the operation of Indian

7 programs for fiscal years 1996 through 2000 may not ex8 ceed $1,443,244,000 for each of such fiscal years. For the

9 purposes of this section, the term ‘‘operation of Indian

10 programs’’ means those programs, projects, and activities

11 for which amounts were appropriated for fiscal year 1995

12 under the appropriations account numbered 14–2100–0–

13 1–999, as adjusted under item 90.00 (relating to adjust14 ments to gross budget authority and outlays).

15 SEC. 9202. BUREAU OF INDIAN AFFAIRS CONSTRUCTION.

16 Amounts appropriated for construction with respect

17 to the Bureau of Indian Affairs for fiscal years 1996

18 through 2000 may not exceed $83,111,000 for each of

19 such fiscal years. For the purposes of this section, the

20 term ‘‘construction with respect to the Bureau of Indian

21 Affairs’’ means those programs, projects, and activities for

22 which amounts were appropriated for fiscal year 1995

23 under the appropriations account numbered 14–2301–0–

24 1–452 and identified as budget authority under item

25 40.00.
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1 TITLE X—EDUCATION AND

2 TRAINING

3 Subtitle A—Job Training Reform

4 SEC. 10001. SHORT TITLE.

5 This subtitle may be cited as the ‘‘Employment En6 hancement Reform Act’’.

7 CHAPTER 1—BLOCK GRANTS TO STATES

8 SEC. 10011. STATEMENT OF PURPOSE.

9 It is the purpose of this chapter to establish a block

10 grant program to prepare individuals for employment in

11 the labor force by increasing their occupational and edu12 cational skills, resulting in improved long-term employ13 ability, increased employment and earnings, and reduced

14 welfare dependency.

15 SEC. 10012. AUTHORIZATION.

16 (a) GRANTS TO STATES.—The Secretary of Labor

17 may provide grants to States for the purpose of providing

18 employment assistance to eligible individuals in such

19 States in accordance with this chapter.

20 (b) GRANTS TO INDIAN TRIBES AND MIGRANT AND

21 SEASONAL FARMWORKER ORGANIZATIONS.—Not more

22 than 5 percent of the amount appropriated to carry out

23 this chapter for a fiscal year may be used by the Secretary

24 to provide grants to Indian tribes and migrant and sea25 sonal farmworker organizations for the purpose of provid-
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1 ing employment assistance to Native Americans and mi2 grant and seasonal farmworkers in accordance with this

3 subchapter.

4 (c) PERIOD OF GRANTS.—A grant received under

5 subsection (a) or (b), as the case may be, may extend for

6 a period of not more than 5 fiscal years. The payments

7 under such grant shall be subject to annual approval of

8 the Secretary and the availability of appropriations for

9 each fiscal year.

10 SEC. 10013. ALLOCATION.

11 In providing grants to States under section 10012 for

12 a fiscal year, the Secretary shall, to the extent practicable,

13 allocate the amount appropriated for such fiscal year as

14 follows:

(1) 331 15 ⁄3 percent shall be allocated on the basis

16 of the relative number of unemployed individuals re17 siding in areas of substantial unemployment within

18 each State as compared to the total number of such

19 unemployed individuals in all such areas of substan20 tial unemployment in all States.

(2) 331 21 ⁄3 percent shall be allocated on the basis

22 of the relative excess number of unemployed individ23 uals within each State as compared to the total ex24 cess number of unemployed individuals in all States.
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(3) 331 1 ⁄3 percent shall be allocated on the basis

2 of the relative number of economically disadvantaged

3 adults within each State as compared to the total

4 number of economically disadvantaged adults in all

5 States.

6 SEC. 10014. APPLICATION.

7 The Secretary may provide a grant to a State under

8 section 10012 only if such State submits to the Secretary

9 an application which contains such information as the Sec10 retary may reasonably require, including a description of

11 the program to be established by the State under section

12 10015.

13 SEC. 10015. USE OF AMOUNTS.

14 (a) ESTABLISHMENT OF EMPLOYMENT ASSISTANCE

15 PROGRAM.—

16 (1) IN GENERAL.—The Secretary may provide a

17 grant to a State under section 10012 only if such

18 State agrees that it will use all amounts received

19 from such grant to establish a program to provide

20 employment assistance to eligible individuals de21 scribed in paragraph (2).

22 (2) ELIGIBLE INDIVIDUALS.—An individual

23 shall be eligible to receive employment assistance

24 under the program if such individual—
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•HR 1923 IH

1 (A) has attained the age of 14 and is eco2 nomically disadvantaged;

3 (B)(i) has been terminated or laid off or

4 who has received a notice of termination or lay5 off from employment, is eligible for or has ex6 hausted entitlement to unemployment com7 pensation, and is unlikely to return to the indi8 vidual’s previous industry or occupation;

9 (ii) has been terminated, has received no10 tice of termination, or has reason to believe that

11 such individual will be terminated or receive no12 tice of termination or lay off from employment,

13 as a result of any permanent closure of or any

14 substantial layoff at a plant, facility, or enter15 prise; or

16 (iii) was self-employed (including farmers

17 and ranchers) and is unemployed as a result of

18 general economic conditions in the community

19 in which the individual resides or because of

20 natural disasters, subject to regulations pre21 scribed by the Secretary;

22 (C) is an individual with a disability;

23 (D) is a member of the Armed Forces who

24 is being separated under other than adverse

25 conditions;
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•HR 1923 IH

1 (E) is a veteran who is unemployed; or

2 (F) is a displaced homemaker.

3 (b) CONDUCT OF PROGRAM.—In carrying out the

4 program described in subsection (a), the State shall meet

5 the following requirements:

6 (1)(A) The State shall ensure the profiling and

7 evaluation of eligible individuals for the purpose of

8 determining the amount of employment assistance

9 services, including, subject to subparagraph (B), the

10 amount of supportive services, if appropriate, to be

11 provided to such individuals. In profiling and evalu12 ating such individuals, the State shall classify indi13 viduals in 1 of the following 3 categories:

14 (i) Job-ready and in need of placement

15 services.

16 (ii) Job-ready and in need of remedial

17 skills enhancement.

18 (iii) Non-job-ready and in need of remedial

19 education.

20 (B) The State shall ensure that eligible individ21 uals receive information relating to the provision of

22 supportive services from sources other than under

23 this subchapter for the purpose of participating in

24 the program under this subchapter.
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1 (2) The State shall provide appropriate employ2 ment assistance services to eligible individuals based

3 upon the classification of the individual in the cat4 egories described in clauses (i) through (iii) of para5 graph (1)(A). Such assistance may not be used to

6 provide stipends or direct payments to individuals

7 for participation in the program, including payments

8 for supportive services, except that such assistance

9 may include payments for transportation costs,

10 based on need, of such individuals for participation

11 in the program.

12 (3) The State shall monitor the rate at which

13 individuals in the program successfully obtain em14 ployment after separation from the program in ac15 cordance with the following criteria:

16 (A) With respect to individuals classified in

17 the category described in paragraph (1)(A)(i),

18 employment for a period of not less than 6

19 months under which—

20 (i) the individual works an average of

21 at least 35 hours per week; and

22 (ii) the individual receives wages equal

23 to not less than 65 percent of the average

24 wages received for employment during the
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1 2-year period ending on the date of enroll2 ment in the program.

3 (B) With respect to individuals classified

4 in the category described in paragraph

5 (1)(A)(ii)—

6 (i) demonstration of proficiency of

7 those skill areas of the individual assessed

8 as deficient; and

9 (ii) employment for a period of not

10 less than 6 months in accordance with the

11 requirements described in subparagraph

12 (A).

13 (C) With respect to individuals classified in

14 the category described in paragraph

15 (1)(A)(iii)—

16 (i) demonstration of proficiency in

17 education and skills commensurate with a

18 high school degree; and

19 (ii) employment for a period of not

20 less than 6 months in accordance with the

21 requirements described in subparagraph

22 (A).

23 (4) The State shall, to the extent practicable,

24 establish one-stop-shop centers throughout the State

25 at which eligible individuals are provided information
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•HR 1923 IH

1 on the various types of employment assistance serv2 ices available under the program and at which such

3 individuals are profiled and evaluated in accordance

4 with paragraph (1)(A).

5 (c) DISCRETIONARY ACTIVITIES.—In carrying out

6 the program described in subsection (a), the State may

7 carry out the following activities:

8 (1) The State may allow eligible individuals to

9 participate in education and job search activities for

10 non-traditional employment.

11 (2) The State may establish a State employ12 ment coordinating council (or designate a similar ex13 isting council) which will—

14 (A) study the emerging economic and em15 ployment trends, job creation opportunities, and

16 other employment and job training needs of in17 dividuals in the State;

18 (B) based upon the study conducted under

19 subparagraph (A), propose additional appro20 priate activities to be carried out under the pro21 gram; and

22 (C) report the results of the study con23 ducted under subparagraph (A) and the pro24 posed additional appropriate activities under

25 subparagraph (B) to—
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1 (i) the State agency responsible for

2 carrying out the program;

3 (ii) the Governor; and

4 (iii) the State legislature.

5 SEC. 10016. REPORTS.

6 (a) REPORT TO THE SECRETARY.—Not later than 1

7 year after the date on which a State receives amounts

8 from a grant under section 10012, and in each subsequent

9 fiscal year in which the State receives amounts from such

10 grant, the State shall submit to the Secretary a report

11 containing—

12 (1) the total number of individuals who applied

13 for participation in the program in the fiscal year;

14 (2) the total number of individuals enrolled in

15 the program in the fiscal year and the total number

16 of individuals who have re-enrolled in the program

17 for such fiscal year;

18 (3) the period of time spent in the program by

19 individuals who have separated from the program

20 and the rate at which such individuals successfully

21 obtained employment after such separation in ac22 cordance with the criteria described in subpara23 graphs (A) through (C) of section 10015(b)(3); and

24 (4) any other appropriate information requested

25 by the Secretary.
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1 (b) REPORT TO CONGRESS.—The Secretary shall an2 nually submit to the Congress a report containing—

3 (1) a compilation of the information contained

4 in the reports received by the Secretary under sub5 section (a); and

6 (2) an evaluation of the block grant program

7 under this subchapter.

8 SEC. 10017. REDUCTION OR TERMINATION OF PAYMENTS

9 UNDER GRANT.

10 (a) DETERMINATION OF SUCCESS IN PLACING INDI11 VIDUALS IN EMPLOYMENT.—

12 (1) IN GENERAL.—The Secretary shall deter13 mine, based upon the information contained in the

14 reports submitted by a State under section

15 10016(a), whether or not the State has been suc16 cessful in placing individuals in employment during

17 each 2-year period under the program.

18 (2) CRITERIA.—In making a determination

19 under paragraph (1), the Secretary shall take into

20 consideration appropriate criteria, including the gen21 eral economic conditions of the State during the 2-

22 year period referred to in such paragraph.

23 (b) REDUCTION OR TERMINATION OF PAYMENTS.—

24 If the Secretary determines under subsection (a) that a

25 State has not been successful in placing individuals in em-
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1 ployment during any 2-year period under the program, the

2 Secretary may—

3 (1) reduce the amount of payments under the

4 grant to such State for subsequent fiscal years; or

5 (2) terminate payments under the grant to such

6 State.

7 (c) CONTINUATION OF PAYMENTS.—The Secretary

8 may reinstate payments or increase payments under a

9 grant with respect to a State that the Secretary has deter10 mined under subsection (a) has not been successful in

11 placing individuals in employment in accordance with sub12 section (b), if the Secretary subsequently determines that

13 such State has implemented appropriate modifications to

14 the program.

15 SEC. 10018. DEFINITIONS.

16 For the purposes of this chapter, the following defini17 tions apply:

18 (1) AREA OF SUBSTANTIAL UNEMPLOYMENT.—

19 The term ‘‘area of substantial unemployment’’

20 means any area which has an average rate of unem21 ployment of at least 6.5 percent for the most recent

22 twelve months as determined by the Secretary. De23 terminations of areas of substantial unemployment

24 shall be made once each fiscal year.
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1 (2) ECONOMICALLY DISADVANTAGED.—The

2 term ‘‘economically disadvantaged’’ means an indi3 vidual who—

4 (A) receives, or is a member of a family

5 which receives, cash welfare payments under a

6 Federal, State, or local welfare program;

7 (B) has, or is a member of a family which

8 has, received a total family income for the six9 month period prior to application for the pro10 gram involved (exclusive of unemployment com11 pensation, child support payments, and welfare

12 payments) which, in relation to family size, was

13 not in excess of the higher of—

14 (i) the official poverty line (as defined

15 by the Office of Management and Budget,

16 and revised annually in accordance with

17 section 673(2) of the Omnibus Budget

18 Reconciliation Act of 1981 (42 U.S.C.

19 9902(2)); or

20 (ii) 70 percent of the lower living

21 standard income level;

22 (C) is receiving (or has been determined

23 within the 6-month period prior to the applica24 tion for the program involved to be eligible to
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1 receive) food stamps pursuant to the Food

2 Stamp Act of 1977;

3 (D) qualifies as a homeless individual

4 under subsections (a) and (c) of section 103 of

5 the Stewart B. McKinney Homeless Assistance

6 Act;

7 (E) is a foster child on behalf of whom

8 State or local government payments are made;

9 (F) in cases permitted by regulations of

10 the Secretary, is an individual with a disability

11 whose own income meets the requirements of

12 subparagraph (A) or (B), but who is a member

13 of a family whose income does not meet such

14 requirements; or

15 (G) is an individual meeting appropriate

16 criteria approved by the State.

17 (3) INDIVIDUAL WITH A DISABILITY.—The term

18 ‘‘individual with a disability’’ means an individual

19 who has a physical or mental disability which for

20 such individual constitutes or results in a substantial

21 handicap to employment.

22 (4) LOW-INCOME LEVEL.—The term ‘‘low-in23 come level’’ means $7,000 with respect to income in

24 1969, and for any later year means that amount

25 which bears the same relationship to $7,000 as the
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1 Consumer Price Index for that year bears to the

2 Consumer Price Index for 1969, rounded to the

3 nearest $1,000.

4 (5) SECRETARY.—The term ‘‘Secretary’’ means

5 the Secretary of Labor.

6 (6) STATE.—The term ‘‘State’’ means each of

7 the several States, the District of Columbia, the

8 Commonwealth of Puerto Rico, the Commonwealth

9 of the Northern Mariana Islands, American Samoa,

10 Guam, the Virgin Islands, the Federated States of

11 Micronesia, the Republic of the Marshall Islands,

12 and the Republic of Palau.

13 (7) UNEMPLOYED INDIVIDUALS.—The term

14 ‘‘unemployed individuals’’ means individuals who are

15 without jobs and who want and are available for

16 work. The determination of whether individuals are

17 without jobs shall be made in accordance with the

18 criteria used by the Bureau of Labor Statistics of

19 the Department of Labor in defining individuals as

20 unemployed.

21 (8) VETERAN.—The term ‘‘veteran’’ means an

22 individual who served in the active military, naval, or

23 air service, and who was discharged or released

24 therefrom under conditions other than dishonorable.
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1 (9) VOCATIONAL EDUCATION.—The term ‘‘vo2 cational education’’ means organized educational

3 programs offering a sequence of courses which are

4 directly related to the preparation of individuals in

5 paid or unpaid employment in current or emerging

6 occupations requiring other than a baccalaureate or

7 advanced degree. Such programs shall include com8 petency-based applied learning which contributes to

9 an individual’s academic knowledge, higher-order

10 reasoning, and problem-solving skills, work attitudes,

11 general employability skills, and the occupational12 specific skills necessary for economic independence

13 as a productive and contributing member of society.

14 Such term also includes applied technology edu15 cation.

16 (10) DISPLACED HOMEMAKER.—The term ‘‘dis17 placed homemaker’’ means an individual who has

18 been providing unpaid services to family members in

19 the home and who—

20 (A) has been dependent either—

21 (i) on public assistance and whose

22 youngest child is within 2 years of losing

23 eligibility under part A of title IV of the

24 Social Security Act (42 U.S.C. 601 et

25 seq.); or
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1 (ii) on the income of another family

2 member but is no longer supported by that

3 income; and

4 (B) is unemployed or underemployed and is

5 experiencing difficulty in obtaining or upgrad6 ing employment.

7 (11) NONTRADITIONAL EMPLOYMENT.—The

8 term ‘‘nontraditional employment’’ means occupa9 tions or fields of work where women or men, as the

10 case may be, comprise less than 25 percent of the

11 individuals employed in such occupation or field of

12 work.

13 SEC. 10019. TRANSFER OF FUNDS.

14 Notwithstanding any other provision of law, any

15 amounts appropriated to carry out any provision of law

16 specified in part 2 of chapter 2 which are not obligated

17 or expended on or after the end of the first fiscal year

18 beginning after the date of the enactment of this sub19 chapter shall be made available to carry out this sub20 chapter.

21 SEC. 10020. AUTHORIZATION OF APPROPRIATIONS.

22 (a) IN GENERAL.—There are authorized to be appro23 priated to carry out this chapter $8,000,000,000 for each

24 of the fiscal years 1997 through 2001.
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1 (b) AVAILABILITY.—Amounts appropriated pursuant

2 to the authorization of appropriations in subsection (a) are

3 authorized to remain available until expended.

4 CHAPTER 2—CONSOLIDATION AND RE5 PEAL OF CERTAIN FEDERAL EMPLOY6 MENT ASSISTANCE PROGRAMS

7 PART 1—CONSOLIDATION OF PROGRAMS

8 SEC. 10031. CERTAIN COMMUNITY-BASED PROJECTS RE9 GARDING HEALTH CARE FOR THE HOME10 LESS; CONFORMING AMENDMENT REGARD11 ING PUBLIC LAW 102–321.

12 The Stewart B. McKinney Homeless Assistance Act

13 (Public Law 100–77) is amended by striking section 612

14 (relating to homeless individuals with chronic mental ill15 ness).

16 SEC. 10032. CERTAIN EMPLOYMENT-RELATED PROGRAMS

17 UNDER REHABILITATION ACT OF 1973.

18 (a) SUPPORTED EMPLOYMENT FOR INDIVIDUALS

19 WITH MOST SEVERE DISABILITIES.—Section 101(a) of

20 the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) is

21 amended—

22 (1) in paragraph (5), by amending subpara23 graph (B) to read as follows:

24 ‘‘(B) provide satisfactory assurances to the Commis25 sioner that the State has studied and considered a broad
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1 variety of means for providing services to individuals with

2 the most severe disabilities, including the provision of serv3 ices leading to supported employment; and’’; and

4 (2) by amending paragraph (25) to read as fol5 lows:

6 ‘‘(25) provide assurances satisfactory to the Sec7 retary that the State has an acceptable plan for developing

8 a collaborative program with appropriate entities to pro9 vide supported employment services for individuals with

10 the most severe disabilities who require supported employ11 ment services to enter or retain competitive employment;’’.

12 (b) SPECIAL RECREATION ACTIVITIES AND SERV13 ICES.—

14 (1) IN GENERAL.—Section 101(a)(12) of the

15 Rehabilitation Act of 1973 (29 U.S.C. 721(a)(12))

16 is amended—

17 (A) in subparagraph (A), by striking

18 ‘‘and’’ after the semicolon at the end;

19 (B) in subparagraph (B), by adding ‘‘and’’

20 after the semicolon at the end; and

21 (C) by adding at the end the following sub22 paragraph:

23 ‘‘(C) provide for entering into agreements with the

24 operators of community rehabilitation programs or to

25 make awards of grants or contracts to nonprofit private
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1 organizations, for the provision of special recreation activi2 ties and services, that are, whenever possible, provided in

3 settings with peers who are not individuals with disabil4 ities;’’.

5 (2) SCOPE OF SERVICES.—Section 103(a) of

6 the Rehabilitation Act of 1973 (29 U.S.C. 723(a))

7 is amended—

8 (A) in paragraph (15), by striking ‘‘and’’

9 after the semicolon at the end;

10 (B) in paragraph (16), by striking the pe11 riod at the end and inserting ‘‘; and’’; and

12 (C) by adding at the end the following

13 paragraph:

14 ‘‘(17) special recreation activities and serv15 ices.’’.

16 (c) PROJECTS WITH INDUSTRY.—Section 101(a) of

17 the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) is

18 amended—

19 (1) in paragraph (35), by striking ‘‘and’’ after

20 the semicolon at the end;

21 (2) in paragraph (36), by striking the period at

22 the end and inserting ‘‘; and’’; and

23 (3) by adding at the end the following para24 graph:
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1 ‘‘(37) provide satisfactory assurances to the Commis2 sioner that the State has awarded grants to individual em3 ployers, community rehabilitation program providers,

4 labor unions, trade associations, Indian tribes, tribal orga5 nizations, designated States units, and other entities that

6 are jointly financed to create and expand job and career

7 opportunities for individuals with disabilities, which pro8 vide training in realistic work settings, job placements, de9 velopment and modification of jobs and career opportuni10 ties, and distribution of rehabilitation technology, includ11 ing necessary support services.’’.

12 (d) DEFINITIONS.—Section 7 of the Rehabilitation

13 Act of 1973 (29 U.S.C. 706) is amended by adding at

14 the end the following paragraph:

15 ‘‘(36) The term ‘special recreation activities and serv16 ices’ means activities and services that provide individuals

17 with disabilities with recreational activities and related ex18 periences to aid in the employment, mobility, socialization,

19 independence, and community integration of such individ20 uals. These may include, but are not limited to, vocational

21 skills development, leisure education, leisure networking,

22 leisure resource development, physical education and

23 sports, scouting and camping, 4-H activities, music, danc24 ing, handicrafts, art, and homemaking.’’.

25 (e) CONFORMING PROVISIONS.—
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1 (1) REPEALS.—The Rehabilitation Act of 1973

2 (29 U.S.C. 701 et seq.) is amended by striking the

3 following provisions:

4 (A) Subsection (c) of section 311.

5 (B) Section 316.

6 (C) Parts B and C of title VI.

7 (2) FUNDING.—Section 100(b)(1) of the Reha8 bilitation Act of 1973 (29 U.S.C. 720(b)(1)) is

9 amended by adding at the end the following: ‘‘(For

10 fiscal year 1996, in determining the amount to be

11 appropriated under the preceding sentence, the

12 amount appropriated for fiscal year 1995 under this

13 subsection is deemed to be the sum of the aggregate

14 amount appropriated for carrying out section 311(c),

15 section 316, and parts B and C of title VI and the

16 amount actually appropriated under this subsection

17 for fiscal year 1994.)’’.

18 (3) REDESIGNATIONS; CROSS-REFERENCES.—

19 The Rehabilitation Act of 1973 (29 U.S.C. 701 et

20 seq.) is amended—

21 (A) in section 101(a)(5)(A), by striking

22 ‘‘including individuals served under part C of

23 title VI of this Act’’;
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1 (B) in section 310, by striking ‘‘sections

2 311(d), 311(e), 312, and 316’’ and inserting

3 ‘‘sections 311(c), 311(d), and 312’’;

4 (C) in section 311, by redesignating sub5 sections (d) through (f) as subsections (c)

6 through (e), respectively;

7 (D) in title VI, by redesignating part D as

8 part B; and

9 (E) in section 802(j)—

10 (i) in paragraph (1), by striking

11 ‘‘Consistent with’’ and all that follows

12 through ‘‘the Commissioner may’’ and in13 serting ‘‘The Commissioner may’’; and

14 (ii) in paragraph (3)(B), by striking

15 clause (ii) and redesignating clauses (iii)

16 through (vi) as clauses (ii) through (v), re17 spectively.

18 PART 2—REPEAL OF PROGRAMS

19 SEC. 10041. HIGHER EDUCATION FOR STUDENTS FROM MI20 GRANT AND SEASONAL FARMWORKER FAMI21 LIES.

22 Subpart 5 of part A of title IV of the Higher Edu23 cation Act of 1965 (20 U.S.C. 1070d–2) is repealed.
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1 SEC. 10042. CERTAIN VETERANS PROGRAMS.

2 (a) DISABLED VETERANS OUTREACH PROGRAM AND

3 LOCAL VETERANS EMPLOYMENT REPRESENTATIVE PRO4 GRAM.—Sections 4103A, 4104, and 4104A of title 38,

5 United States Code, are repealed.

6 (b) HOMELESS VETERANS REINTEGRATION

7 PROJECT.—Section 738 of Public Law 100–77 (42 U.S.C.

8 11448) is repealed.

9 (c) CONFORMING AMENDMENTS.—(1) Section

10 3117(a)(2) of title 38, United States Code, is amended—

11 (A) by striking subparagraph (B) and redesig12 nating subparagraph (C) as subparagraph (B); and

13 (B) by inserting ‘‘and’’ after the semicolon at

14 the end of subparagraph (A).

15 (2) Section 3672(d) of title 38, United States Code,

16 is amended by striking ‘‘and shall utilize’’ and all that fol17 lows through the end thereof and inserting in lieu thereof

18 a period.

19 (3) Section 4102A(b) of title 38, United States Code,

20 is amended—

21 (A) by inserting ‘‘and’’ at the end of paragraph

22 (4);

23 (B) by striking paragraphs (5) and (7) of sub24 section (b);
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1 (C) by redesignating paragraph (6) as para2 graph (5) and in that paragraph by striking ‘‘; and’’

3 and inserting a period; and

4 (D) by striking subsection (c).

5 (4) Section 4106(a) of title 38, United States Code,

6 is amended—

7 (A) in the fifth sentence—

8 (i) by striking ‘‘in all of the States for the

9 purposes specified in paragraph (5) of section

10 4102A(b) of this title and’’; and

11 (ii) by striking ‘‘sections.’’ and inserting

12 ‘‘section.’’; and

13 (B) in the sixth sentence, by striking ‘‘and of

14 the proposed numbers, by State, of disabled veter15 ans’ outreach program specialists appointed under

16 section 4103A of this title and local veterans’ em17 ployment representatives assigned under section

18 4104 of this title,’’.

19 (5) Section 4107(c) of title 38, United States Code,

20 is amended—

21 (A) by inserting ‘‘and’’ at the end of paragraph

22 (3);

23 (B) by striking paragraph (4);

24 (C) by redesignating paragraph (5) as para25 graph (4) and in that paragraph—
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1 (i) by striking ‘‘including an evaluation of

2 the effectiveness of such programs during such

3 program year in meeting the requirements of

4 section 4102A(b) of this title,’’; and

5 (ii) by striking ‘‘(including’’ and all that

6 follows through ‘‘representatives)’’.

7 (6) Section 739(b) of Public Law 100–77 (42 U.S.C.

8 11449) is amended by striking ‘‘other than section 738

9 and for the program under section 738’’.

10 (7) The table of sections for chapter 41 of title 38,

11 United States Code, is amended by striking the items re12 lating to sections 4103A, 4104, and 4104A.

13 SEC. 10043. FOSTER GRANDPARENT AND SENIOR COMPAN14 ION PROGRAMS AND PROGRAMS UNDER

15 OLDER AMERICANS ACT OF 1965.

16 (a) FOSTER GRANDPARENT AND SENIOR COMPANION

17 PROGRAMS.—The Domestic Volunteer Service Act (42

18 U.S.C. 4950 et seq.) is amended—

19 (1) in section 200—

20 (A) in paragraph (1) by inserting ‘‘and’’ at

21 the end,

22 (B) in paragraph (2) by striking the semi23 colon at the end and inserting a period, and

24 (C) by striking paragraphs (3) and (4),

25 (2) in title II—
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1 (A) by striking parts B and C, and

2 (B) in part D—

3 (i) by redesignating such part as part

4 B,

5 (ii) in sections 221 and 225 by strik6 ing ‘‘parts A, B, and C’’ each place it ap7 pears and inserting ‘‘part A’’, and

8 (iii) by redesignating part E as part

9 C,

10 (3) in section 416(f)(2) by striking ‘‘parts (B)

11 and’’ and inserting ‘‘part’’,

12 (4) in section 421—

13 (A) by striking paragraphs (9), (10), (17),

14 and (18), and

15 (B) in paragraph (14) by striking ‘‘(B),

16 (C), and (E)’’ and inserting ‘‘and (C)’’,

17 (5) in section 502—

18 (A) by striking subsections (b) and (c),

19 and

20 (B) in subsection (d)—

21 (i) by striking ‘‘part E’’ and inserting

22 ‘‘part C’’, and

23 (ii) by redesignating such subsection

24 as subsection (c), and
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1 (6) in section 503(d) by striking ‘‘part E’’ and

2 inserting ‘‘part C’’.

3 (b) AMENDMENT TO THE OLDER AMERICANS ACT OF

4 1965.—Title V of the Older Americans Act of 1965 (42

5 U.S.C. 3056–3056i) is repealed.

6 SEC. 10044. JOB TRAINING PARTNERSHIP ACT.

7 (a) IN GENERAL.—The Job Training Partnership

8 Act (29 U.S.C. 1501 et seq.), except sections 421 through

9 439 of such Act (29 U.S.C. 1691 et seq.) (relating to the

10 Job Corps), is hereby repealed.

11 (b) CONFORMING AMENDMENTS TO JOB CORPS.—

12 The Job Training Partnership Act (29 U.S.C. 1501 et

13 seq.) is amended—

14 (1) by redesignating sections 421 through 439

15 as sections 1 through 20, respectively;

16 (2) in section 1 (as redesignated), by striking

17 ‘‘part’’ each place it appears and inserting ‘‘Act’’;

18 (3) in section 3(4) (as redesignated), by strik19 ing ‘‘sections 424 and 425’’ and inserting ‘‘sections

20 4 and 5’’;

21 (4) in section 4 (as redesignated)—

22 (A) in subsection (a), by striking ‘‘entities

23 administering programs under title II of this

24 Act,’’; and
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1 (B) in subsection (b), by striking ‘‘part’’

2 and inserting ‘‘Act’’;

3 (5) in section 6 (as redesignated)—

4 (A) in subsection (a), by striking ‘‘section

5 428’’ and inserting ‘‘section 8’’; and

6 (B) by striking subsection (d);

7 (6) in section 7 (as redesignated)—

8 (A) by striking subsection (b); and

9 (B) by redesignating subsection (c) as sub10 section (b);

11 (7) in section 13 (as redesignated)—

12 (A) in subsection (a)(4), by striking ‘‘part’’

13 and inserting ‘‘Act’’;

14 (B) in subsection (c)(1), by striking ‘‘and

15 activities authorized under sections 452 and

16 453’’; and

17 (C) in subsection (e), by striking ‘‘section

18 431’’ and inserting ‘‘section 11’’;

19 (8) in section 14 (as redesignated)—

20 (A) in subsection (a)—

21 (i) in the matter preceding paragraph

22 (1), by striking ‘‘section 427’’ and insert23 ing ‘‘section 7’’; and

24 (ii) in paragraph 4(A), by striking

25 ‘‘section 428’’ and inserting ‘‘section 8’’;
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1 (B) in subsection (c)(3), by striking ‘‘sec2 tion 423’’ and inserting ‘‘section 3’’;

3 (C) in subsection (d), by striking ‘‘sections

4 424 and 425’’ and inserting ‘‘sections 4 and 5’’;

5 and

6 (D) in subsection (e), by striking ‘‘, pursu7 ant to section 452(d),’’;

8 (9) in section 16 (as redesignated), by striking

9 ‘‘part’’ each place it appears and inserting ‘‘Act’’;

10 (10) in section 19 (as redesignated), by striking

11 ‘‘part’’ each place it appears and inserting ‘‘Act’’;

12 (11) in section 20 (as redesignated), by striking

13 ‘‘part’’ and inserting ‘‘Act’’; and

14 (12) by adding at the end the following new

15 section:

16 ‘‘SEC. 21. AUTHORIZATION OF APPROPRIATIONS.

17 ‘‘There are authorized to be appropriated to carry out

18 this Act—

19 ‘‘(1) $1,098,000,000 for fiscal year 1997;

20 ‘‘(2) $1,128,000,000 for fiscal year 1998;

21 ‘‘(3) $1,158,000,000 for fiscal year 1999;

22 ‘‘(4) $1,189,000,000 for fiscal year 2000; and

23 ‘‘(5) $1,221,000,000 for fiscal year 2001.’’.
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1 SEC. 10045. APPALACHIAN VOCATIONAL AND OTHER EDU2 CATION FACILITIES AND OPERATIONS PRO3 GRAM.

4 Section 211 of the Appalachian Regional Develop5 ment Act of 1965 (40 U.S.C. App. 211) is repealed.

6 SEC. 10046. TARGETED JOBS CREDIT.

7 (a) IN GENERAL.—Part IV of subchapter A of chap8 ter 1 of the Internal Revenue Code of 1986 is amended

9 by striking subpart F (relating to rules for computing tar10 geted jobs credit).

11 (b) TECHNICAL AMENDMENTS.—

12 (1) Subsection (b) of section 38 of such Code

13 is amended by striking paragraph (2) and by redes14 ignating the succeeding paragraphs accordingly.

15 (2) The table of subparts for part IV of sub16 chapter A of chapter 1 of such Code is amended by

17 striking the item relating to subpart F.

18 SEC. 10047. SERVICE MEMBERS OCCUPATIONAL CONVER19 SION AND TRAINING ACT OF 1992.

20 The Service Members Occupational Conversion and

21 Training Act of 1992 (10 U.S.C. 1143 note) is repealed.

22 SEC. 10048. ADULT EDUCATION PROGRAMS.

23 The Adult Education Act (20 U.S.C. 1201 et seq.)

24 is repealed.
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1 SEC. 10049. VOCATIONAL EDUCATION PROGRAMS.

2 The Carl D. Perkins Vocational and Applied Tech3 nology Education Act (20 U.S.C. 2301 et seq.) is repealed.

4 SEC. 10050. NATIONAL LITERACY PROGRAMS.

5 The National Literacy Act of 1991 (20 U.S.C. 1211–

6 2) is repealed.

7 SEC. 10051. INDIAN EMPLOYMENT, TRAINING AND RELATED

8 SERVICES DEMONSTRATION PROGRAM.

9 The Indian Employment, Training and Related Serv10 ices Demonstration Act of 1992 (25 U.S.C. 3401 et seq.)

11 is repealed.

12 SEC. 10052. SPECIAL PROVISIONS RELATING TO INDIAN

13 TRIBES.

14 Subsection (i) of section 682 of the Social Security

15 Act (42 U.S.C. 682(i)) is repealed.

16 SEC. 10053. LITERACY CORPS.

17 Section 109 of the Domestic Volunteer Service Act

18 of 1973 (42 U.S.C. 4959) is repealed.

19 SEC. 10054. MISCELLANEOUS REPEALERS.

20 The following provisions of law are hereby repealed:

21 (1) The Act of June 6, 1933 (29 U.S.C. 49 et

22 seq.; commonly referred to as the ‘‘Wagner-Peyser

23 Act’’).

24 (2) Subtitle A of title VII of Stewart B. McKin25 ney Homeless Assistance Act (42 U.S.C. 11421 et

26 seq.).
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1 (3) Subtitle C of title VII of Stewart B. McKin2 ney Homeless Assistance Act (42 U.S.C. 11441 et

3 seq.).

4 (4) Chapter 2 of title II of the Trade Act of

5 1974 (19 U.S.C. 2271 and following) and the items

6 relating to such chapter in the table of contents of

7 such Act.

8 (5) Section 402 of the Homeownership and Op9 portunity Through HOPE Act (42 U.S.C. 12870).

10 (6) Section 204 of the Immigration Reform and

11 Control Act of 1986 (8 U.S.C. 1255a note).

12 Subtitle B—Department Reform

13 CHAPTER 1—SHORT TITLE; FINDINGS;

14 AND PURPOSE

15 SEC. 10101. SHORT TITLE.

16 This subtitle may be cited as the ‘‘Back to Basics

17 Education Reform Act’’.

18 SEC. 10102. FINDINGS.

19 The Congress finds the following:

20 (1) Principles of federalism embodied in the

21 Constitution of the United States entrust authority

22 over issues of educational policy to the States and

23 the people and a Federal Department of Education

24 is inconsistent with such principles.
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1 (2) Tradition and experience dictate that the

2 governance and management of schools in the

3 United States are best performed by parents, teach4 ers and communities.

5 (3) The intrusion by the Department of Edu6 cation into education policy has not benefited the

7 quality of education in this nation.

8 (4) The Department of Education has weak9 ened the ability of parents to make essential deci10 sions about their children’s education and has un11 dermined the capacity of communities to govern

12 their schools.

13 (5) In the 15 years of its existence, the Depart14 ment of Education has grown from 130 programs

15 and a budget of $14 billion to over 240 separately

16 authorized programs which cost almost $32 billion

17 annually. Meanwhile, education performance has

18 stagnated or deteriorated.

19 (6) Since 1980, the year the Federal role in

20 education was elevated to department status, the

21 graduation rate has dropped 1.3 percent. Only 71.2

22 percent of students who enroll in the ninth grade

23 now graduate from high school.
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1 (7) The Department of Education has fostered

2 over-regulation, standardization, bureaucratization,

3 and litigation in United States education.

4 (8) The Department of Education expends

5 large amounts of money on its own maintenance and

6 overhead. As an organization, it is inefficient, ill7 managed, and wasteful.

8 (9) Recent tests reflect poor results in mathe9 matics and reading for American students compared

10 with students from other nations.

11 (10) Only through initiatives led by parents and

12 local communities with the power to act can the

13 United States elevate educational performance to14 ward an acceptable level.

15 (11) The Department of Education has been

16 hostile to many promising reform ideas.

17 SEC. 10103. PURPOSES.

18 The purposes of this subtitle are—

19 (1) to improve the quality of elementary and

20 secondary and higher education programs in the Na21 tion.

22 (2) to return the responsibility and authority

23 for education to parents, teachers, communities, stu24 dents, and States, and provide them greater control

25 over education spending.
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1 (3) to ensure that the Federal Government does

2 not overregulate and interfere in the decisionmaking

3 of parents, local communities, teachers, and students

4 regarding education.

5 (4) to ensure that Americans are able to com6 pete in the global economy of the 21st century.

7 CHAPTER 2—ABOLITION OF DEPARTMENT

8 OF EDUCATION

9 Subchapter A—Transfer of Functions to Of10 fice in Department of Health and Human

11 Services

12 SEC. 10111. ABOLITION OF DEPARTMENT.

13 The Department of Education is abolished.

14 SEC. 10112. ESTABLISHMENT AND SUNSET OF OFFICE OF

15 ECONOMIC OPPORTUNITIES IN THE DEPART16 MENT OF HEALTH AND HUMAN SERVICES,

17 AND TRANSFER OF FUNCTIONS.

18 (a) ESTABLISHMENT OF OFFICE.—There is estab19 lished in the Department of Health and Human Services

20 the Office of Economic Opportunities.

21 (b) DIRECTOR.—

22 (1) IN GENERAL.—There shall be at the head

23 of the Office a Director for Economic Opportunities,

24 who shall be appointed by the President and con25 firmed with the advice and consent of the Senate.
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1 The Office shall be administered under the super2 vision and direction of the Assistant Secretary for

3 the Administration for Families and Children. The

4 Director for Economic Opportunities shall receive

5 compensation at the rate prescribed for level V of

6 the Executive Schedule under section 5315 of title

7 5, United States Code.

8 (2) INITIAL APPOINTMENT OF ADMINIS9 TRATOR.—Notwithstanding any other provision of

10 this subtitle or any other law, the President may, at

11 any time after the date of the enactment of this Act,

12 appoint an individual to serve as Director of Eco13 nomic Opportunities, as such position is established

14 under paragraph (1). An appointment under this

15 paragraph may not be construed to affect the posi16 tion of Secretary of Education or the authority of

17 the Secretary before the effective date specified in

18 section 10119(a).

19 (c) DUTIES.—The Director shall be responsible for—

20 (1) the administration of all functions of the

21 Office pursuant to section 10112 and other provi22 sions of law;

23 (2) the administration and wind-up of any out24 standing obligations of the Federal Government
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1 under any programs terminated or repealed by this

2 subtitle; and

3 (3) taking such other actions as may be nec4 essary to wind up any outstanding affairs of the De5 partment of Education and the Office.

6 (d) TRANSFER OF FUNCTIONS.—Except as otherwise

7 provided in this subtitle, the Director shall perform all

8 functions that, immediately before the effective date of

9 this section under section 10119(a), were functions of the

10 Department of Education (or any office of the Depart11 ment) or were performed by the Secretary of Education

12 or any other officer or employee of the Department in the

13 capacity as such officer or employee.

14 (e) ABOLITION OF OFFICE.—The Office and all of

15 its functions are abolished effective upon the expiration

16 of the authorization for the programs under its jurisdic17 tion.

18 SEC. 10113. PRINCIPAL OFFICERS.

19 (a) DIRECTORS.—There shall be in the Office—

20 (1) an Assistant Director of Childhood School21 ing; and

22 (2) an Assistant Director of Advanced School23 ing.
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1 (b) APPOINTMENT.—Each of the Assistant Directors

2 in the Office of Economic Opportunities shall be appointed

3 by the Secretary of Health and Human Services.

4 SEC. 10114. CONTINUATION OF SERVICE OF DEPARTMENT

5 OFFICER.

6 (a) CONTINUATION OF SERVICE OF SECRETARY.—

7 The individual serving as the Secretary of Education on

8 the effective date of this chapter may serve as Director

9 until the date an individual is appointed under this chap10 ter to the position of Director, or until the end of the 120-

11 day period provided for in section 3348 of title 5, United

12 States Code (relating to limitations on the period of time

13 a vacancy may be filled temporarily), whichever is earlier.

14 (b) COMPENSATION FOR CONTINUED SERVICE.—Any

15 individual who acts as the Director under subsection (a)

16 after the effective date of this chapter and before the first

17 appointment of a person to such position after such date

18 shall be compensated pursuant to section 10112(b)(1) for

19 so serving or acting.

20 SEC. 10115. REORGANIZATION.

21 The Secretary of Health and Human Services may

22 allocate or reallocate any function of the Office pursuant

23 to this subtitle among the officers of the Office, and may,

24 in accordance with the transfer of functions by this sub25 title, consolidate, alter, or discontinue in the Office any
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1 organizational entities that were entities of the Depart2 ment of Education, as the Secretary of Health and

3 Human Services considers necessary or appropriate. Not4 withstanding any other provision of law, the Secretary of

5 Health and Human Services may not transfer any func6 tion or personnel of the Office to any agency outside of

7 the Office.

8 SEC. 10116. PLAN FOR WINDING UP AFFAIRS.

9 Not later than the effective date specified in section

10 10119, the President shall submit to the Congress a plan

11 for winding up the affairs of the Department of Education

12 in accordance with this subtitle.

13 SEC. 10117. GAO REPORT.

14 Not later than 180 days after the date of enactment

15 of this Act, the Comptroller General of the United States

16 shall submit to the Congress a report which shall include

17 recommendations for the most efficient means of achiev18 ing, in accordance with this subtitle—

19 (1) the complete abolition of the Department of

20 Education; and

21 (2) the termination or transfer or other con22 tinuation of functions of the Department of Edu23 cation.
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1 SEC. 10118. CONFORMING AMENDMENTS.

2 (a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)

3 of title 3, United States Code, is amended by striking

4 ‘‘Secretary of Education,’’.

5 (b) EXECUTIVE DEPARTMENTS.—Section 101 of title

6 5, United States Code, is amended by striking the follow7 ing item: ‘‘The Department of Education.’’.

8 (c) SECRETARY’S COMPENSATION.—Section 5312 of

9 title 5, United States Code, is amended by striking the

10 following item: ‘‘Secretary of Education.’’.

11 (d) COMPENSATION FOR POSITIONS AT LEVEL II.—

12 Section 5313 of title 5, United States Code, is amended

13 by striking the following item: ‘‘Deputy Secretary of Edu14 cation.’’.

15 (e) COMPENSATION FOR POSITIONS AT LEVEL III.—

16 Section 5314 of title 5, United States Code, is amended

17 by striking the following item: ‘‘Under Secretary of Edu18 cation.’’;

19 (f) COMPENSATION FOR POSITIONS AT LEVEL IV.—

20 Section 5315 of title 5, United States Code, is amended—

21 (1) by striking the following items: ‘‘Assistant

22 Secretaries of Education (10). ‘‘General Counsel,

23 Department of Education. ‘‘Inspector General, De24 partment of Education.’’;

25 (2) by striking the following item: ‘‘Chief Fi26 nancial Officer, Department of Education.’’; and
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1 (3) by striking the following item: ‘‘Liaison for

2 Community and Junior Colleges, Department of

3 Education.’’.

4 (g) COMPENSATION FOR POSITIONS AT LEVEL V.—

5 Section 5316 of title 5, United States Code, is amended

6 by striking the following item: ‘‘Additional officers, De7 partment of Education (4).’’.

8 (h) INSPECTOR GENERAL ACT OF 1978.—The In9 spector General Act of 1978 (5 U.S.C. App.) is amend10 ed—

11 (1) in section 9(a)(1), by striking subparagraph

12 (D);

13 (2) in section 11(1), by striking ‘‘Education,’’;

14 and

15 (3) in section 11(2), by striking ‘‘Education,’’.

16 SEC. 10119. EFFECTIVE DATE.

17 (a) IN GENERAL.—Except as provided in subsection

18 (b), this chapter shall take effect on the date that is one

19 year after the date of enactment of this Act.

20 (b) INITIAL APPOINTMENT OF DIRECTOR.—The fol21 lowing provisions of this chapter shall take effect on the

22 date of enactment of this Act:

23 (1) Section 10116.

24 (2) Section 10117.
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1 SEC. 10120. LIMITATION ON EXPENDITURES.

2 The amount expended by the United States each fis3 cal year for the administration of a function transferred

4 by this subtitle shall not exceed 70 percent of the total

5 amount expended for the administration of that function

6 during fiscal year 1995.

7 CHAPTER 3—EDUCATION PROGRAMS

8 Subchapter A—Elementary and Secondary

9 Education

10 PART I—ELEMENTARY AND SECONDARY

11 EDUCATION BLOCK GRANT PROGRAM

12 SEC. 10131. GOALS OF ELEMENTARY AND SECONDARY EDU13 CATION BLOCK GRANT PROGRAM.

14 The Director of the Office of Economic Opportunities

15 under the Administration for Children and Families in the

16 Department of Health and Human Services is authorized

17 to provide the Governor of each State that complies with

18 the requirements of section 10133 a grant in an amount

19 determined under section 10135.

20 SEC. 10132. PROGRAM AUTHORIZED.

21 Each State shall, subject to the requirements of this

22 subtitle and appropriations Acts, receive a grant under

23 this subtitle in each fiscal year to carry out the purposes

24 of this subtitle.
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1 SEC. 10133. STATE ELIGIBILITY.

2 (a) IN GENERAL.—To be eligible to receive a grant

3 under this subtitle, a State shall submit an application to

4 the Director of Economic Opportunities which contains

5 the assurances required by this chapter. Such application

6 must be submitted at such time, in such form and manner

7 as the Director may reasonably require.

8 (b) ASSURANCES.—Such application shall include the

9 following assurances:

10 (1) IMPROVE EDUCATION.—The Governor shall

11 use funds received to improve education.

12 (2) DISTRIBUTION.—The Governor shall estab13 lish a procedure to distribute funds to local edu14 cational entities or to provide services to children at15 tending local educational entities.

16 (3) ASSURANCES FROM LOCAL EDUCATIONAL

17 ENTITIES.—The Governor shall require a local edu18 cational entity that seeks funds under this chapter

19 to provide assurances that—

20 (A) funds will be used to improve edu21 cation;

22 (B) parents, members of the community,

23 and community leaders will be involved in deci24 sionmaking at the local level; and
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1 (C) such entity that receives funds under

2 this chapter will comply with Federal civil

3 rights laws.

4 SEC. 10134. GENERAL STATE REQUIREMENTS.

5 (a) FUNDS FOR LOCAL USE.—

6 (1) IN GENERAL.—Not less than 98 percent of

7 the amount of funds received by a State under this

8 chapter shall be made available to local educational

9 entities.

10 (2) LOCAL DISCRETION.—A local educational

11 entity that receives funds from a State will have the

12 discretion to spend funds received from the State to

13 develop programs that improve education.

14 (b) ADMINISTRATIVE COSTS.—Not more than 2 per15 cent of funds received under this chapter may be used by

16 a State or a local educational entity for administrative

17 purposes.

18 SEC. 10135. AMOUNT OF STATE ALLOTMENT.

19 (a) IN GENERAL.—Except as provided in subsections

20 (b) and (c), there shall be allotted to each State, which

21 for purposes of this section shall not include the terri22 tories, an amount which bears the same ratio to the

23 amount of funds appropriated for this chapter in any fis24 cal year as the population of children, aged 5 through 17
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1 years of age, of such State bears to the population of such

2 children of all the States.

3 (b) STATE MINIMUM.—Of the total amount appro4 priated to carry out this subtitle in any fiscal year each

5 State shall receive not less than one quarter of one percent

6 of such amounts.

7 (c) SET ASIDE FOR TERRITORIES.—Of the amount

8 allotted under subsection (a), the Director shall allot not

9 more than one quarter of one percent among Puerto Rico,

10 the Commonwealth of the Northern Mariana Islands,

11 American Samoa, Guam, and the Virgin Islands.

12 SEC. 10136. LOCAL FISCAL ACCOUNTABILITY.

13 A local educational entity that receives funds from

14 a State under this subtitle in any fiscal year shall be re15 quired to make reasonably available—

16 (1) a proposed budget regarding how such

17 funds shall be used; and

18 (2) an accounting of the actual use of such

19 funds at the end of such entity’s fiscal year.

20 SEC. 10137. PARTICIPATION OF CHILDREN ENROLLED IN

21 PRIVATE SCHOOLS.

22 (a) SECULAR, NEUTRAL, NONIDEOLOGICAL.—Any

23 educational services or other benefits, including materials

24 and equipment, provided to children enrolled in private

25 schools shall be secular, neutral, and nonideological.
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1 (b) BYPASS.—

2 (1) IN GENERAL.—If under law a State is pro3 hibited from providing for the participation under

4 this chapter of eligible children enrolled in private el5 ementary and secondary schools, the Office of Eco6 nomic Opportunities, at the request of the Governor,

7 shall arrange for services for such children to the ex8 tent consistent with the number of eligible children

9 identified under section 10135 in a local educational

10 agency who are enrolled in private elementary and

11 secondary schools.

12 (2) EQUITABLE SERVICES.—Services provided

13 under this section shall be equitable in comparison

14 to services and other benefits provided for public

15 school children participating in programs under this

16 chapter.

17 (3) REDUCTION.—The amount of funds appro18 priated to the State pursuant to section 10135 shall

19 be reduced by the amount necessary to carry out

20 this section.

21 SEC. 10138. DEFINITIONS.

22 Except as otherwise provided, for the purposes of this

23 subtitle, the following terms have the following meanings:

24 (1) DIRECTOR.—The term ‘‘Director’’ means

25 the Director of Economic Opportunities under the
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1 Administration for Children and Families in the De2 partment of Health and Human Services.

3 (2) LOCAL EDUCATIONAL ENTITY.—The term

4 ‘‘local educational entity’’ means a local educational

5 agency or public or a private elementary or second6 ary school.

7 (2) STATE.—The term ‘‘State’’ means any of

8 the several States, the District of Columbia, the

9 Commonwealth of Puerto Rico, the Virgin Islands,

10 American Samoa, Guam, and the Commonwealth of

11 the Northern Mariana Islands.

12 SEC. 10139. AUTHORIZATION OF APPROPRIATIONS.

13 There are authorized to be appropriated

14 $9,000,000,000 for each of the fiscal years 1998 through

15 2000 to carry out the programs authorized under this sub16 title.

17 PART II—OTHER ELEMENTARY AND SECONDARY

18 EDUCATION PROGRAMS

19 SEC. 10141. AMENDMENTS AND REPEALS OF CERTAIN EDU20 CATION PROVISIONS.

21 (a) ELEMENTARY AND SECONDARY EDUCATION ACT

22 OF 1965.—

23 (1) IN GENERAL.—Titles I, II, III, IV, V, VI,

24 VII, X, XI, XII, XIII, XIV, and parts B and C of
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1 title IX of the Elementary and Secondary Education

2 Act of 1965 are repealed.

3 (2) IMPACT AID.—(A) Section 8003 of the Ele4 mentary and Secondary Education Act of 1965 (20

5 U.S.C. 7703) is amended by striking subsection (e)

6 of such section.

7 (B) Except as provided under subparagraph

8 (A), the programs provided under title VIII of the

9 Elementary and Secondary Education Act of 1965

10 shall be administered by the Department of Defense

11 through the Assistant Secretary for Force Manage12 ment Policy.

13 (3) INDIAN EDUCATION.—Part A of title IX of

14 the Elementary and Secondary Education Act of

15 1965 shall be administered by the Department of

16 the Interior through the Assistant Secretary for In17 dian Affairs.

18 (b) GOALS 2000: EDUCATE AMERICA ACT.—Goals

19 2000: Educate America Act is repealed.

20 (c) SCHOOL-TO-WORK OPPORTUNITIES ACT.—The

21 School-to-Work Opportunities Act is repealed.

22 (d) GENERAL EDUCATION PROVISIONS ACT.—Parts

23 D and F, sections 422, 424, 425, 427, 428, 429, 433,

24 439, and 443, and paragraph (3) of section 431(a) of the

25 General Education Provisions Act are repealed.
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1 (e) NATIONAL EDUCATION STATISTICS ACT OF

2 1994.—The National Education Statistics Act of 1994 is

3 repealed.

4 (f) EFFECTIVE DATE.—The repeals and transfers

5 made by subsections (a), (b), (c), and (d) shall take effect

6 on the date that is one year after the date of enactment

7 of this Act.

8 Subchapter II—Conforming Amendments to

9 the Individuals with Disabilities Edu10 cation Act

11 SEC. 10142. AMENDMENTS TO PROVISIONS REFERENCING

12 SECRETARY OF EDUCATION AND DEPART13 MENT OF EDUCATION.

14 (a) TRANSFER OF AUTHORITY FROM SECRETARY OF

15 EDUCATION TO SECRETARY OF HEALTH AND HUMAN

16 SERVICES.—The Individuals with Disabilities Education

17 Act (20 U.S.C. 1400 et seq.) is amended in sections

18 602(a)(14), 611(f), and 684(b)(5) by striking ‘‘Secretary

19 of Education’’ each place such term appears and inserting

20 ‘‘Secretary of Health and Human Services’’.

21 (b) TRANSFER OF AUTHORITY FROM DEPARTMENT

22 OF EDUCATION TO DEPARTMENT OF HEALTH AND

23 HUMAN SERVICES.—The Individuals with Disabilities

24 Education Act (20 U.S.C. 1400 et seq.) is amended in

25 sections 610 and 621(a)(3) by striking ‘‘Department of
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1 Education’’ each place such term appears and inserting

2 ‘‘Department of Health and Human Services’’.

3 SEC. 10143. AMENDMENTS TO DEFINITIONS.

4 (a) DEFINITION OF EXCESS COSTS.—Subparagraph

5 (A) of section 602(a)(21) of the Individuals with Disabil6 ities Education Act (20 U.S.C. 1401(a)(21)(A)) is amend7 ed to read as follows:

8 ‘‘(A) amounts received—

9 ‘‘(i) under this part, or

10 ‘‘(ii) under subchapter I of chapter 3

11 of the Back to Basics Education Act,

12 and’’.

13 (b) DEFINITION OF NATIVE LANGUAGE.—Paragraph

14 (22) of section 602(a) of the Individuals with Disabilities

15 Education Act (20 U.S.C. 1401(a)(22)) is amended to

16 read as follows:

17 ‘‘(22) The term ‘native language’, when used

18 with reference to an individual of limited-English

19 proficiency, means the language normally used by

20 the individual, or in the case of an individual aged

21 3 through 21, the language normally used by the

22 parents of the individual.’’.
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1 SEC. 10144. TRANSFER OF ADMINISTERING AUTHORITY TO

2 OFFICE OF ECONOMIC OPPORTUNITIES.

3 The Individuals with Disabilities Education Act (20

4 U.S.C. 1400 et seq.) is amended—

5 (1) by striking section 603 and inserting the

6 following:

7 ‘‘OFFICE OF ECONOMIC OPPORTUNITIES

8 ‘‘SEC. 603. The Secretary of Health and Human

9 Services, acting through the Director for Economic Oppor10 tunities, shall administer and carry out this subtitle. The

11 Office of Economic Opportunities shall be the principal

12 agency in the Department of Health and Human Services

13 for administering and carrying out programs and activities

14 concerning the education and training of individuals with

15 disabilities.’’;

16 (2) in section 621(f)(1), by striking ‘‘Office of

17 Special Education Programs’’ and inserting ‘‘Office

18 of Economic Opportunities’’; and

19 (3) in section 685(b)(1), by striking ‘‘Office of

20 Special Education Programs;’’ and inserting ‘‘Office

21 of Economic Opportunities;’’.

22 SEC. 10145. OUTREACH SERVICES FOR CERTAIN INSTITU23 TIONS OF HIGHER EDUCATION.

24 Subclause (II) of section 610(j)(2)(C)(ii) of the Indi25 viduals with Disabilities Education Act (20 U.S.C.

26 1409(j)(2)(C)(ii)(II)) is amended to read as follows:
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1 ‘‘(II) institutions of higher education which

2 have an enrollment with includes a substantial

3 percentage of needy students (as determined by

4 the Director) and the average educational and

5 general expenditures of which are low, per full6 time equivalent undergraduate student, in com7 parison with the average educational and gen8 eral expenditures per full-time equivalent under9 graduate student of institutions that offer simi10 lar instruction;’’.

11 Subchapter III—Higher Education Programs

12 PART I—ELIMINATION AND REDUCTION OF

13 PROGRAMS

14 SEC. 10151. REPEAL OF HIGHER EDUCATION LAWS.

15 (a) IN GENERAL.—Except as provided in subsection

16 (b) and (c), the Higher Education Act of 1965 (20 U.S.C.

17 1001) is repealed effective one year after the date of the

18 enactment of this Act.

19 (b) EXCEPTIONS.—Subsection (a) shall not apply to

20 the following:

21 (1) The first section, containing the short title

22 of such Act.

23 (2) Subpart 1 of part A of title IV, relating to

24 Pell Grants.
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1 (3) Part B of such title, relating to the Federal

2 Family Education Loan Program.

3 (4) Part E of such title, relating to Perkins

4 Loans.

5 (5) Parts F, G, and H of such title, relating to

6 needs analysis, general provisions, and the program

7 integrity triad.

8 (6) Section 1201, relating to definitions.

9 (c) CONTINUING AUTHORITY TO COLLECT LOANS.—

10 Subsection (a) shall not affect the authority of the United

11 States to collect any loan made under any provision re12 pealed by such subsection.

13 (d) PERKINS LOANS.—Section 461(b) of the Higher

14 Education Act of 1965 is amended to read as follows:

15 ‘‘(b) CONTRIBUTIONS DISCONTINUED.—No funds

16 are authorized to be appropriated for fiscal year 1996 or

17 any succeeding year for the purpose of making contribu18 tions to student loan funds established under this part.’’.

19 (e) LIMITATION ON FUNDS FOR HOWARD UNIVER20 SITY.—Section 8 of the Act of March 2, 1867 is amend21 ed—

22 (1) by inserting ‘‘(a)’’ after ‘‘SEC. 8.’’; and

23 (2) by adding at the end the following new sub24 section:
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1 ‘‘(b) Notwithstanding subsection (a) and any provi2 sion of the Howard University Endowment Act, the total

3 amount that is authorized to be appropriated pursuant to

4 this section and such Endowment Act shall not exceed the

5 total amount appropriated pursuant to this section and

6 such Endowment Act for fiscal year 1995, and of such

7 total amount—

8 ‘‘(1) not less than 30 percent of the amount ap9 propriated for fiscal year 1998 shall be appropriated

10 for purposes of such Endowment Act;

11 ‘‘(2) not less than 60 percent of the amount ap12 propriated for fiscal year 1999 shall be appropriated

13 for purposes of such Endowment Act; and

14 ‘‘(3) not less than 100 percent of the amount

15 appropriated for fiscal year 2000 shall be appro16 priated for purposes of such Endowment Act.

17 Notwithstanding subsection (a) and any provision of the

18 Howard University Endowment Act, no funds are author19 ized to be appropriated pursuant to this section or such

20 Endowment Act for fiscal year 2001 or any succeeding

21 fiscal year.’’.

22 SEC. 10152. AMENDMENT TO THE FEDERAL CREDIT RE23 FORM ACT.

24 (a) AMENDMENT.—Section 502(5)(B) of the Con25 gressional Budget Act is amended to read as follows:
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1 ‘‘(B) The cost of a direct loan shall be the

2 net present value, at the time when the direct

3 loan is disbursed, of the following cash flows for

4 the estimated life of the loan—

5 ‘‘(i) loan disbursements;

6 ‘‘(ii) repayments of principal;

7 ‘‘(iii) payments of interest and other

8 payments by or to the Government over

9 the life of the loan after adjusting for esti10 mated defaults, prepayments, fees, pen11 alties and other recoveries; and

12 ‘‘(iv) in the case of a direct loan made

13 pursuant to a program for which the Office

14 of Management and Budget estimates that

15 for the coming fiscal year (or for any prior

16 fiscal year) loan commitments will equal or

17 exceed $5,000,000,000, direct expenses, in18 cluding but not limited to the following: ex19 penses arising from activities related to

20 credit extension; loan origination; loan

21 servicing; technical assistance; training;

22 program promotion; payments to contrac23 tors, other government entities, and pro24 gram participants; collection of delinquent
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1 loans; and write-off and close-out of

2 loans.’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 subsection (a) shall apply to all fiscal years beginning on

5 or after October 1, 1995, and to statutory changes made

6 on or after the date of enactment of this Act.

7 SEC. 10153. SALE OF FDSL LOAN PORTFOLIOS.

8 The Higher Education Act of 1965 Act (20 U.S.C.

9 1087h) is amended by inserting after section 458 the fol10 lowing new section:

11 ‘‘SEC. 459. SALE OF FEDERAL DIRECT STUDENT LOAN

12 PORTFOLIOS.

13 ‘‘(a) AUCTION SALES OF LOAN PORTFOLIOS.—The

14 Secretary shall conduct auctions to sell the outstanding

15 portfolio of loans made pursuant to this part. Such auc16 tions shall consist of sales of portfolios representative of

17 the overall characteristics of the direct loans held by the

18 Secretary. Auctions shall be held for portfolios of not less

19 than $40,000,000 of loans per sale. The first sale of loans

20 shall take place not later than 120 days after the date

21 of enactment of this section, and shall not include Federal

22 guarantees or reinsurance against the contingency of bor23 rower default, death, or disability.

24 ‘‘(b) LOAN TERMS SUBJECT TO PROMISSORY

25 NOTE.—Such loans shall be subject to the terms and con-
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1 ditions as specified in the borrower promissory note, and

2 shall not be subject to further Federal regulations pursu3 ant to this subtitle.

4 ‘‘(c) DISPOSITION OF PROCEEDS.—All proceeds re5 ceived as a result of the auctions conducted pursuant to

6 this part shall be returned to the United States Depart7 ment of the Treasury after deduction of expenses incurred

8 by the Department of Education in connection with the

9 auctions required pursuant to this section.’’.

10 SEC. 10154. STUDENT LOAN PROGRAM; STATEMENT OF

11 POLICY.

12 The Congress finds that the Federal student loan

13 programs should be reviewed to evaluate whether reforms

14 need to be made to the programs based on the principles

15 of risk sharing, market-based orientation, privatization,

16 and deregulation.

17 SEC. 10155. ELIMINATION OF IN-SCHOOL INTEREST SUB18 SIDIES.

19 (a) GUARANTEED LOANS.—Section 428(a) of the

20 Higher Education Act of 1965 (20 U.S.C. 1078(a)) is

21 amended by adding at the end the following new para22 graph:

23 ‘‘(8) TERMINATION OF INTEREST SUBSIDIES.—

24 Notwithstanding paragraph (3), no portion of the in25 terest shall be paid by the Secretary under this sub-
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1 section on any loan made on or after October 1,

2 1995. Interest on the unpaid principal amount of

3 any such loan—

4 ‘‘(A) which accrues prior to the beginning

5 of the repayment period of the loan, or

6 ‘‘(B) which accrues during a period in

7 which principal need not be paid (whether or

8 not such principal is in fact paid) by reason of

9 a provision described in subsection (b)(1)(M) of

10 this section or in section 427(a)(2)(C),

11 shall, at the option of the borrower—

12 ‘‘(i) be paid monthly or quarterly, or

13 ‘‘(ii) be added by the lender to the prin14 cipal amount of the loan at the commencement

15 of the repayment period.’’.

16 PART II—HIGHER EDUCATION BLOCK GRANT

17 SEC. 10161. PURPOSE.

18 It is the purpose of this part to authorize block grants

19 to States to assist institutions of higher education in order

20 to improve access to higher education and to improve the

21 quality of educational programs.

22 SEC. 10162. DISTRIBUTION OF FUNDS.

23 (a) IN GENERAL.—From the funds appropriated

24 under section 10165, the Director shall allocate to the

25 Governor of each State that has submitted the assurances
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1 required by section 10163 an amount that bears the same

2 ratio to the amount so appropriated as the number of stu3 dents enrolled in institutions of higher education in such

4 State bears to the total number of students so enrolled

5 in all the States.

6 (b) EXCEPTION FOR SMALL STATES.—Notwithstand7 ing subsection (a), no State shall be allocated less than

8 0.25 percent of the funds appropriated under section

9 10165.

10 (c) DETERMINATION OF NUMBER OF STUDENTS.—

11 The Director shall determine the number of students in

12 each State on the basis of a certification from the Gov13 ernor of each State.

14 SEC. 10163. STATE ASSURANCES.

15 Any State seeking to obtain an allocation under sec16 tion 10162 shall submit to the Director an application

17 that contains the following assurances:

18 (1) The Governor of such State will establish a

19 procedure for the distribution of funds to participat20 ing institutions of higher education.

21 (2) The Governor will use the funds obtained

22 under this part only for the improvement of higher

23 education.

24 (3) The Governor will require each participating

25 institution to submit assurances to the State that
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1 they will use funds obtained under this part only for

2 the improvement of higher education.

3 (4) The Governor will require each participating

4 institution to submit assurances that the institution

5 will comply with Federal civil rights laws.

6 SEC. 10164. USE OF FUNDS.

7 (a) IN GENERAL.—Any funds obtained by a partici8 pating institution under this part may, subject to the pro9 visions of this part, be used for any existing or new pro10 gram.

11 (b) LIMITATION ON ADMINISTRATIVE COSTS.—Not

12 more than 2 percent of the funds allocated to any State

13 or institution under this chapter may be used for adminis14 trative costs.

15 SEC. 10165. PUBLIC DISCLOSURE.

16 Institutions receiving funding under this chapter

17 shall make reasonably available to the community, par18 ents, and students a listing of the uses of such funds.

19 SEC. 10166. AUTHORIZATION OF APPROPRIATIONS.

20 There are authorized to be appropriated to carry out

21 this subtitle $2,000,000,000 for each of fiscal years 1998

22 through 2000.

23 SEC. 10167. DEFINITIONS.

24 As used in this subtitle—
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1 (1) unless otherwise provided, the terms used in

2 this part that are defined in section 1201 of the

3 Higher Education Act of 1965 have the meanings

4 provided in such section;

5 (2) the term ‘‘State’’ means the several States

6 and the District of Columbia; and

7 (3) the term ‘‘Director’’ means the Director of

8 Economic Opportunities in the Department of

9 Health and Human Services.

10 Subchapter IV—Miscellaneous Provisions

11 SEC. 10171. CONSTRUCTION.

12 Notwithstanding the provisions of this subtitle, noth13 ing in this subtitle shall be construed to affect continued

14 funding for Galludet University, the American Printing

15 House for the Blind, or the National Institute for the Deaf

16 at fiscal year 1995 levels through fiscal year 2000.

17 SEC. 10172. REGULATIONS.

18 For purposes of this chapter, the Secretary of Health

19 and Human Services shall consult with Congress before

20 issuing regulations regarding the grants provided under

21 part I of subchapter A and part II of subchapter C of

22 this chapter and shall only issue regulations that are nec23 essary for the timely distribution of funds to the States.
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1 SEC. 10173. CONSOLIDATED APPLICATION.

2 The Secretary of Health and Human Services shall

3 provide for a consolidated application for grants provided

4 under part I of subchapter A and part II of subchapter

5 C of this chapter. Consolidated applications also shall be

6 permitted at the local level.

7 SEC. 10174. APPROPRIATIONS.

8 The amount that is authorized to be appropriated for

9 programs under part II of subchapter A, subchapter B,

10 and part I of subchapter C shall not exceed the amount

11 appropriated for such programs for fiscal year 1995. Such

12 programs shall be authorized through fiscal year 2000.

13 SEC. 10175. FEDERAL CIVIL RIGHTS.

14 (a) IN GENERAL.—

15 (1) APPLICABILITY.—Nothing in this chapter

16 shall be construed to affect the applicability of civil

17 rights laws relating to any program established,

18 transferred, or consolidated under this subtitle.

19 (2) DUTIES.—The Secretary of Health and

20 Human Services shall be responsible for carrying out

21 any other civil rights functions performed by the

22 Secretary of Education as such functions were per23 formed on the day before the date of the enactment

24 of this Act.

25 (b) HEALTH AND HUMAN SERVICES.—The Director

26 of the Office of Civil Rights of the Department of Health
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1 and Human Services shall submit a report annually to the

2 Secretary of Health and Human Services, the President,

3 and the appropriate committees of Congress summarizing

4 the compliance and enforcement activities of the Office of

5 Civil Rights as such activities pertain to the Office of Eco6 nomic Opportunities. The report shall identify significant

7 civil rights or compliance problems for which the Office

8 of Civil Rights has made a recommendation for corrective

9 action and which, in the judgment of the Director of the

10 Office of Civil Rights, adequate progress is not being

11 made.

12 (c) DEPARTMENT OF JUSTICE.—The Assistant At13 torney General in charge of the Civil Rights Division of

14 the Department of Justice shall submit annually a report

15 to the Attorney General, the President, and the appro16 priate committees of Congress summarizing the activities

17 of the Civil Rights Division as such activities pertain to

18 the grantees of programs authorized by this subtitle.

19 CHAPTER 4—GENERAL PROVISIONS

20 SEC. 10181. REFERENCES.

21 Any reference in any other Federal law, Executive

22 order, rule, regulation, or delegation of authority, or any

23 document of or pertaining to an office from which a func24 tion is transferred by this subtitle—
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1 (1) to the Secretary of Education or an officer

2 of the Department of Education, is deemed to refer

3 to the head of the department or office to which

4 such function is transferred; or

5 (2) to the Department of Education is deemed

6 to refer to the department or office to which such

7 function is transferred.

8 SEC. 10182. EXERCISE OF AUTHORITIES.

9 Except as otherwise provided by law, a Federal offi10 cial to whom a function is transferred by this subtitle may,

11 for purposes of performing the function, exercise all au12 thorities under any other provision of law that were avail13 able with respect to the performance of that function to

14 the official responsible for the performance of the function

15 immediately before the transfer of the function under this

16 subtitle.

17 SEC. 10183. SAVINGS PROVISIONS.

18 (a) LEGAL DOCUMENTS.—All orders, determinations,

19 rules, regulations, permits, grants, loans, contracts, agree20 ments, certificates, licenses, and privileges—

21 (1) that have been issued, made, granted, or al22 lowed to become effective by the President, the Sec23 retary of Education, any officer or employee of any

24 office transferred by this subtitle, or any other Gov25 ernment official, or by a court of competent jurisdic-
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1 tion, in the performance of any function that is

2 transferred by this subtitle, and

3 (2) that are in effect on the date of such trans4 fer (or become effective after such date pursuant to

5 their terms as in effect on the date of such transfer),

6 shall continue in effect according to their terms until

7 modified, terminated, superseded, set aside, or revoked in

8 accordance with law by the President, any other author9 ized official, a court of competent jurisdiction, or operation

10 of law.

11 (b) PROCEEDINGS.—This subtitle shall not affect any

12 proceedings or any application for any benefits, service,

13 license, permit, certificate, or financial assistance pending

14 on the effective date of this chapter with respect to a func15 tion transferred by this subtitle, but such proceedings and

16 applications shall be continued. Orders shall be issued in

17 such proceedings, appeals shall be taken therefrom, and

18 payments shall be made pursuant to such orders, as if this

19 subtitle had not been enacted, and orders issued in any

20 such proceeding shall continue in effect until modified, ter21 minated, superseded, or revoked by a duly authorized offi22 cial, by a court of competent jurisdiction, or by operation

23 of law. Nothing in this subsection shall be considered to

24 prohibit the discontinuance or modification of any such

25 proceeding under the same terms and conditions and to
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1 the same extent that such proceeding could have been dis2 continued or modified if this subtitle had not been enacted.

3 (c) SUITS.—This subtitle shall not affect suits com4 menced before the effective date of this chapter and in

5 all such suits, proceeding shall be had, appeals taken, and

6 judgments rendered in the same manner and with the

7 same effect as if this subtitle had not been enacted.

8 (d) NONABATEMENT OF ACTIONS.—No suit, action,

9 or other proceeding commenced by or against the Depart10 ment of Education or the Secretary of Education, or by

11 or against any individual in the official capacity of such

12 individual as an officer or employee of an office trans13 ferred by this subtitle, shall abate by reason of the enact14 ment of this Act.

15 (e) CONTINUANCE OF SUITS.—If, before the effective

16 date of this chapter, any officer of the Department of

17 Education in the official capacity of such officer is party

18 to a suit with respect to a function of the officer, and

19 under this subtitle such function is transferred to any

20 other officer or office, then such suit shall be continued

21 with the other officer or the head of such other office, as

22 applicable, substituted or added as a party.

23 SEC. 10184. TRANSFER OF ASSETS.

24 Except as otherwise provided in this subtitle, so much

25 of the personnel, property, records, and unexpended bal-
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1 ances of appropriations, allocations, and other funds em2 ployed, used, held, available, or to be made available in

3 connection with a function transferred to an official by

4 this subtitle shall be available to the official at such time

5 or times as the President directs for use in connection with

6 the functions transferred.

7 SEC. 10185. DELEGATION AND ASSIGNMENT.

8 Except as otherwise expressly prohibited by law or

9 otherwise provided in this subtitle, an official to whom

10 functions are transferred under this subtitle (including the

11 head of any office to which functions are transferred under

12 this subtitle) may delegate any of the functions so trans13 ferred to such officers and employees of the office of the

14 official as the official may designate, and may authorize

15 successive redelegations of such functions as may be nec16 essary or appropriate. No delegation of functions under

17 this section or under any other provision of this subtitle

18 shall relieve the official to whom a function is transferred

19 under this subtitle of responsibility for the administration

20 of the function.

21 SEC. 10186. AUTHORITY OF OFFICE OF MANAGEMENT AND

22 BUDGET WITH RESPECT TO FUNCTIONS

23 TRANSFERRED.

24 (a) DETERMINATIONS.—If necessary, the Director of

25 the Office of Management and Budget shall make any de-
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1 termination of the functions that are transferred under

2 this subtitle.

3 (b) INCIDENTAL TRANSFERS.—The Director of the

4 Office of Management and Budget, at such time or times

5 as the Director shall provide, may make such determina6 tions as may be necessary with regard to the functions

7 transferred by this subtitle, and to make such additional

8 incidental dispositions of personnel, assets, liabilities,

9 grants, contracts, property, records, and unexpended bal10 ances of appropriations, authorizations, allocations, and

11 other funds held, used, arising from, available to, or to

12 be made available in connection with such functions, as

13 may be necessary to carry out the provisions of this sub14 title. The Director of the Office of Management and Budg15 et shall provide for the termination of the affairs of all

16 entities terminated by this subtitle and for such further

17 measures and dispositions as may be necessary to effec18 tuate the purposes of this subtitle.

19 SEC. 10187. PROPOSED CHANGES IN LAW.

20 Not later than 90 days before the effective date speci21 fied in section 10119, the Director of the Office of Man22 agement and Budget shall submit to the Congress a de23 scription of any changes in Federal law necessary to re24 flect abolishments, transfers, terminations, and disposals

25 under this subtitle.
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1 SEC. 10188. DEFINITION OF TRANSFER.

2 For purposes of this chapter, the vesting of a func3 tion in a department or office pursuant to reestablishment

4 of an office shall be considered to be the transfer of the

5 function.

6 SEC. 10189. DEFINITIONS.

7 For purposes of this chapter, the following definitions

8 shall apply:

9 (1) DIRECTOR.—The term ‘‘Director’’ means

10 the Director for Economic Opportunities in the Ad11 ministration for Families and Children in the De12 partment of Health and Human Services, estab13 lished under section 10112(a).

14 (2) FUNCTION.—The term ‘‘function’’ includes

15 any duty, obligation, power, authority, responsibility,

16 right, privilege, activity, or program.

17 (3) OFFICE.—The term ‘‘Office’’ means the Of18 fice of Economic Opportunities in the Department of

19 Health and Human Services, established under sec20 tion 10112(a).

21 CHAPTER 5—STATEMENTS OF POLICY

22 SEC. 10191. STATEMENT OF POLICY REGARDING FEDERAL

23 EDUCATION FUNDING.

24 Congress finds that there should be a review and eval25 uation as to the feasibility of further enhancing the ability

26 of States and local communities to fund education by re-
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1 ducing the Federal tax burden and commensurately elimi2 nating Federal Government involvement in providing

3 grants for education programs.

4 SEC. 10192. STATEMENT OF POLICY REGARDING JOB

5 TRAINING PROGRAMS.

6 The Congress finds that all job training programs

7 under the jurisdiction of the Department of Education—

8 (1) should be reviewed and transferred to the

9 Department of Labor; and

10 (2) should be consolidated into 1 or more block

11 grants.

12 SEC. 10193. STATEMENT OF POLICY REGARDING INDIAN

13 EDUCATION.

14 Congress finds that any program transferred as a re15 sult of this subtitle to the Department of the Interior

16 should be reviewed by Congress to ensure that such pro17 grams benefit Native American children that live on res18 ervations.

19 Subtitle C—Elementary and

20 Secondary Education Reforms

21 SEC. 10201. ELIMINATION OF IMPACT AID.

22 (a) IN GENERAL.—Title VIII of the Elementary and

23 Secondary Education Act of 1965 (20 U.S.C. 7701 et

24 seq.) is hereby repealed.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall take effect on October 1, 1995, or the

3 date of the enactment of this Act, whichever occurs later.

4 SEC. 10202. EISENHOWER REGIONAL MATHEMATICS AND

5 SCIENCE EDUCATION CONSORTIA.

6 Title XIII of the Elementary and Secondary Edu7 cation Act of 1965 is amended by striking part C.

8 SEC. 10203. LIMITATION ON AUTHORIZATIONS OF APPRO9 PRIATIONS FOR THE INDIVIDUALS WITH DIS10 ABILITIES EDUCATION ACT.

11 Part A of the Individuals with Disabilities Education

12 Act (20 U.S.C. 1400 et seq.) is amended by adding at

13 the end the following:

14 ‘‘LIMITATION ON AUTHORIZATIONS OF APPROPRIATIONS

15 ‘‘SEC. 610A. Notwithstanding any other provision of

16 this title, the aggregate amount of funds authorized to be

17 appropriated to carry out this title may not exceed

18 $3,252,846,000 for each of the fiscal years 1996 through

19 2000.’’.

20 SEC. 10204. EDUCATION IMPROVEMENT.

21 Not more than $320,298,000 may be made available

22 to carry out the Eisenhower Professional Development

23 State Grant program under title II of the Elementary and

24 Secondary Education Act of 1965 for each of fiscal years

25 1996, 1997, 1998, 1999, and 2000.
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1 SEC. 10205. INNOVATIVE EDUCATION PROGRAM STRATE2 GIES.

3 Not more than $347,250,000 may be available to

4 carry out State grant programs under title VI of the Ele5 mentary and Secondary Education Act of 1965 for each

6 of fiscal years 1996, 1997, 1998, 1999, and 2000.

7 SEC. 10206. SAFE AND DRUG-FREE SCHOOLS AND COMMU8 NITIES.

9 (a) STATE GRANTS.—Not more than $456,962,000

10 may be available to carry out State grant programs under

11 subpart 1 of part A of title IV of the Elementary and

12 Secondary Education Act of 1965 for each of fiscal years

13 1996, 1997, 1998, 1999, and 2000.

14 (b) NATIONAL PROGRAMS.—Not more than

15 $25,000,000 may be available to carry out National pro16 grams under subpart 2 of part A of title IV of the Elemen17 tary and Secondary Education Act of 1965 for each of

18 fiscal years 1996, 1997, 1998, 1999, and 2000.

19 SEC. 10207. EDUCATION INFRASTRUCTURE.

20 Not more than $100,000,000 may be made available

21 to carry out education infrastructure programs under title

22 XII of the Elementary and Secondary Education Act of

23 1965 for each of fiscal years 1996, 1997, 1998, 1999, and

24 2000.
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1 SEC. 10208. INEXPENSIVE BOOK DISTRIBUTION.

2 Not more than $10,300,000 may be made available

3 to carry out the Inexpensive Book Distribution program

4 under part E of title X of the Elementary and Secondary

5 Education Act of 1965 for each of fiscal years 1996, 1997,

6 1998, 1999, and 2000.

7 SEC. 10209. ARTS IN EDUCATION.

8 Not more than $12,000,000 may be made available

9 to carry out the Arts in Education Program under part

10 D of title X of the Elementary and Secondary Education

11 Act of 1965 for each of fiscal years 1996, 1997, 1998,

12 1999, and 2000.

13 SEC. 10210. CHRISTA McAULIFFE SCHOLARSHIPS.

14 Not more than $1,946,000 may be made available to

15 carry out Christa McAuliffe Scholarships by the Depart16 ment of Education for each of fiscal years 1996, 1997,

17 1998, 1999, and 2000.

18 SEC. 10211. MAGNET SCHOOLS ASSISTANCE.

19 Not more than $111,519,000 may be made available

20 to carry out the Magnet Schools Assistance program

21 under part A of title V of the Elementary and Secondary

22 Education Act of 1965 for each of fiscal years 1996, 1997,

23 1998, 1999, and 2000.
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1 SEC. 10212. EDUCATION FOR HOMELESS CHILDREN AND

2 YOUTH.

3 Not more than $28,811,000 may be made available

4 to carry out Education for Homeless Children and Youth

5 programs under subtitle B of title VII of the Stewart B.

6 McKinney Homeless Assistance Act for each of fiscal

7 years 1996, 1997, 1998, 1999, and 2000.

8 SEC. 10213. WOMEN’S EDUCATIONAL EQUITY.

9 Not more than $3,967,000 may be made available to

10 carry out the Women’s Educational Equity programs

11 under part B of title V of the Elementary and Secondary

12 Education Act of 1965 for each of fiscal years 1996, 1997,

13 1998, 1999, and 2000.

14 SEC. 10214. TRAINING AND ADVISORY SERVICES.

15 Not more than $21,419,000 may be made available

16 to the Department of Education to carry out the Training

17 and Advisory services under title IV–A of the Civil Rights

18 Act for each of fiscal years 1996, 1997, 1998, 1999, and

19 2000.

20 SEC. 10215. DROPOUT DEMONSTRATIONS.

21 Not more than $28,000,000 may be made available

22 to carry out the School Dropout program under part C

23 of title V of the Elementary and Secondary Education Act

24 of 1965 for each of fiscal years 1996, 1997, 1998, 1999,

25 and 2000.
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1 SEC. 10216. TRAINING IN EARLY CHILDHOOD EDUCATION

2 AND VIOLENCE COUNSELING.

3 Not more than $13,875,000 may be made available

4 to the Department of Education to carry out Early Child5 hood Education and Violence Training programs for each

6 of fiscal years 1996, 1997, 1998, 1999, and 2000.

7 SEC. 10217. CHARTER SCHOOLS.

8 Not more than $6,000,000 may be made available to

9 carry out the Charter Schools program under part C of

10 title X of the Elementary and Secondary Education Act

11 of 1965 for each of fiscal years 1996, 1997, 1998, 1999,

12 and 2000.

13 SEC. 10218. AUTHORIZED ACTIVITIES.

14 Part A of title II of the Elementary and Seconday

15 Education Act of 1965 is amended by striking section

16 2101.

17 SEC. 10219. PROFESSIONAL DEVELOPMENT DEMONSTRA18 TION PROJECT.

19 Title II of the Elementary and secondary Education

20 Act of 1965 is amended by striking part C.

21 SEC. 10220. IMMIGRANT EDUCATION.

22 Title VII of the Elementary and Secondary Edu23 cation Act of 1965 is amended by striking parts B and

24 C.
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1 SEC. 10221. EDUCATION FOR NATIVE HAWAIIANS.

2 Title IX of the Elementary and Secondary Education

3 Act of 1965 is amended by striking part B.

4 SEC. 10222. PROGRAMS OF NATIONAL SIGNIFICANCE.

5 Title X of the Elementary and Secondary Education

6 Act of 1965 is amended by striking parts A, G, and H.

7 SEC. 10223. LAW-RELATED EDUCATION.

8 Part F of title X of the Elementary and Secondary

9 Education Act of 1965 is amended by striking section

10 10602.

11 SEC. 10224. PUBLIC LIBRARY CONSTRUCTION.

12 Title III of the Improving America’s Schools Act of

13 1994 is amended by striking part G.

14 SEC. 10225. NATIONAL ASSESSMENT OF EDUCATIONAL

15 PROGRESS.

16 Title IV of the Improving America’s Schools Act of

17 1994 is amended by striking section 411.

18 Subtitle D—Community Program

19 Reforms

20 SEC. 10301. REPEAL OF THE NATIONAL FOUNDATION ON

21 THE ARTS AND THE HUMANITIES ACT OF

22 1965.

23 (a) REPEAL OF THE NATIONAL FOUNDATION ON

24 THE ARTS AND THE HUMANITIES ACT OF 1965.—The

25 National Foundation on the Arts and the Humanities Act

26 of 1965 (20 U.S.C. 951–60) is repealed.
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1 (b) TRANSITION PROVISIONS.—The Director of the

2 Office of Management and Budget shall provide for the

3 termination of the affairs of the Federal entities termi4 nated by the repeal made by subsection (a), including the

5 appropriate transfer or other disposition of personnel, as6 sets, liabilities, grants, contracts, property, records, and

7 unexpended balances of appropriations, authorizations, al8 locations, and other funds held, used, arising from, avail9 able to, or to be made available in connection with imple10 menting the authorities terminated by the repeal made by

11 subsection (a).

12 (c) EFFECTIVE DATE.—This section shall take effect

13 on October 1, 1995.

14 SEC. 10302. REPEAL OF NATIONAL AND COMMUNITY SERV15 ICE ACT OF 1990, DOMESTIC VOLUNTEER

16 SERVICE ACT OF 1973, AND RELATED PROVI17 SIONS.

18 (a) NATIONAL AND COMMUNITY SERVICE ACT OF

19 1990.—Effective October 1, 1995, the National and Com20 munity Service Act of 1990 (42 U.S.C. 12501 et seq.) is

21 repealed.

22 (b) DOMESTIC VOLUNTEER SERVICE ACT OF

23 1973.—Effective October 1, 1995, the Domestic Volun24 teer Service Act of 1973 (42 U.S.C. 4950 et seq.) is re25 pealed.
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1 (c) PUBLIC LANDS CORPS.—Effective October 1,

2 1995, title II of Public Law 91–378 (16 U.S.C. 1721 et

3 seq.), as added by section 105 of the National and Com4 munity Service Trust Act of 1993 (Public Law 103–82;

5 107 Stat. 848), is repealed.

6 (d) URBAN YOUTH CORPS.—Effective October 1,

7 1995, section 106 of the National and Community Service

8 Trust Act of 1993 (42 U.S.C. 12656) is repealed.

9 (e) NATIONAL GUARD CIVILIAN YOUTH OPPORTUNI10 TIES PILOT PROGRAM.—Effective October 1, 1995, sec11 tion 1091 of the National Defense Authorization Act for

12 Fiscal Year 1993 (Public Law 102–484; 32 U.S.C. 501

13 note) is repealed.

14 (f) EFFECT OF REPEAL.—Upon the repeal of the

15 provisions specified in this section, the President shall as16 sign to an agency of the United States the responsibility

17 for liquidating the affairs of the entities or activities elimi18 nated as a result of the repeal. The property, records, and

19 unexpended balances (available or to be made available)

20 of appropriations, allocations, and other funds of the

21 eliminated entities and activities shall be transferred to

22 such agency. The repeal of such provisions shall not affect

23 any obligation incurred by the eliminated entities and ac24 tivities before October 1, 1995, and the agency responsible

25 for liquidating the affairs of the eliminated entities and
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1 activities shall satisfy such obligations, subject to the same

2 terms and conditions that would apply in the absence of

3 the repeal.

4 SEC. 10303. REPEAL OF THE MUSEUM SERVICES ACT.

5 (a) REPEALER.—Title II of the Arts, Humanities,

6 and Cultural Affairs Act of 1976 (20 U.S.C. 961–969)

7 is repealed.

8 (b) EFFECTIVE DATE.—Subsection (a) shall take ef9 fect on October 1, 1995.

10 SEC. 10304. TERMINATE FEDERAL FUNDING FOR THE JOHN

11 F. KENNEDY CENTER FOR THE PERFORMING

12 ARTS.

13 Section 12 of the John F. Kennedy Center Act (20

14 U.S.C. 76r) is repealed.

15 SEC. 10305. REPEAL OF THE OLDER AMERICANS COMMU16 NITY SERVICE EMPLOYMENT ACT.

17 (a) REPEALER.—Title V of the Older Americans Act

18 of 1965 (42 U.S.C. 3056–3056i) is repealed.

19 (b) EFFECTIVE DATE.—Subsection (a) shall take ef20 fect on October 1, 1995.

21 SEC. 10306. CONSOLIDATION OF CERTAIN SOCIAL SERVICE

22 PROGRAMS.

23 (a) AMENDMENT TO TITLE XX OF THE SOCIAL SE24 CURITY ACT.—
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1 (1) PAYMENTS TO STATES.—Section 2002(a)(2)

2 of the Social Security Act (40 U.S.C. 1397a(a)(2))

3 is amended—

4 (A) in subparagraph (A)—

5 (i) by inserting ‘‘, services to meet

6 housing and energy needs,’’ after ‘‘health

7 support services’’, and

8 (ii) by striking ‘‘and’’ at the end,

9 (B) in subparagraph (B)—

10 (i) in clause (ii) by striking ‘‘and’’ at

11 the end,

12 (ii) in clause (iii) by striking the pe13 riod at the end and inserting ‘‘; and’’, and

14 (iii) by inserting after clause (iii) the

15 following:

16 ‘‘(iv) activities—

17 ‘‘(I) to plan, develop, establish,

18 expand, improve, or operate before19 and after-school child care programs

20 for school-age children, and resource

21 and referral systems that provide in22 formation on dependent care services;

23 and

24 ‘‘(II) to improve the quality of

25 child care, and to increase the avail-
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1 ability of early childhood development

2 and before- and after-school child care

3 services.’’.

4 (2) ALLOTMENTS.—Section 2003(c) of the So5 cial Security Act (40 U.S.C. 1397b(c)) is amended—

6 (A) in paragraph (4) by striking ‘‘and’’ at

7 the end,

8 (B) in paragraph (5) by striking ‘‘each fis9 cal year after fiscal year 1989.’’ and inserting

10 ‘‘each of the fiscal years 1990, 1991, 1992,

11 1993, 1994, and 1995; and

12 (C) by adding at the end the following:

13 ‘‘(6) $4,009,379,000 for fiscal year 1996.’’.

14 (b) REPEALERS.—

15 (1) COMMUNITY SERVICES BLOCK GRANT

16 ACT.—Subtitle B of title VI of the Omnibus Budget

17 Reconciliation Act of 1981 (42 U.S.C. 9901–9912)

18 is repealed.

19 (2) CHILD CARE AND DEVELOPMENT BLOCK

20 GRANT ACT.—Subchapter C of chapter 8 of subtitle

21 A of title VI of the Omnibus Budget Reconciliation

22 Act of 1981 (42 U.S.C. 9858–9858S) is repealed.

23 (3) STATE DEPENDENT CARE DEVELOPMENT

24 GRANTS ACT.—Subchapter E of chapter 8 of sub25 title A of title VI of the Omnibus Budget Reconcili-
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1 ation Act of 1981 (42 U.S.C. 9871–9877) is re2 pealed.

3 (c) EFFECTIVE DATE.—Subsections (a) and (b) shall

4 take effect on October 1, 1995.

5 SEC. 10307. AMENDMENTS TO THE OLDER AMERICANS ACT

6 OF 1965.

7 (a) FEDERAL COUNCIL ON THE AGING.—Section

8 204(g) of the Older Americans Act of 1965 (42 U.S.C.

9 3015(g)) is amended—

10 (1) by striking ‘‘are’’ and inserting ‘‘is’’, and

11 (2) by striking ‘‘$300,000’’ and all that follows

12 through ‘‘1995’’, and inserting ‘‘$176,000 for each

13 of the fiscal years 1996, 1997, 1998, 1999, and

14 2000’’.

15 (b) AUTHORIZATION OF APPROPRIATIONS FOR TITLE

16 II OF THE ACT.—Section 215 of the Older Americans Act

17 of 1965 (42 U.S.C. 3020f) is amended—

18 (1) in subsection (a) by striking ‘‘such sums’’

19 and all that follows through ‘‘1995’’, and inserting

20 ‘‘$16,524,000 for each of the fiscal years 1996,

21 1997, 1998, 1999, and 2000’’, and

22 (2) in subsection (b) by amending paragraph

23 (1) to read as follows:

24 ‘‘(1) $29,000,000 for each of the fiscal years

25 1996, 1997, 1998, 1999, and 2000; and’’.
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1 (c) AUTHORIZATION OF APPROPRIATIONS FOR TITLE

2 III OF THE ACT.—

3 (1) SUPPORTIVE SERVICES AND SENIOR CEN4 TERS.—Section 303(a)(1) of the Older Americans

5 Act of 1965 (42 U.S.C. 3023(a)(1)) is amended—

6 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

7 and

8 (B) by striking ‘‘$461,376,000’’ and all

9 that follows through ‘‘1995’’, and inserting

10 ‘‘$306,711,000 for each of the fiscal years

11 1996, 1997, 1998, 1999, and 2000’’.

12 (2) CONGREGATE NUTRITION SERVICES.—Sec13 tion 303(b)(1) of the Older Americans Act of 1965

14 (42 U.S.C. 3023(b)(1)) is amended—

15 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

16 and

17 (B) by striking ‘‘$505,000,000’’ and all

18 that follows through ‘‘1995’’, and inserting

19 ‘‘$375,809,000 for each of the fiscal years

20 1996, 1997, 1998, 1999, and 2000’’.

21 (3) HOME-DELIVERED NUTRITION SERVICES.—

22 Section 303(b)(2) of the Older Americans Act of

23 1965 (42 U.S.C. 3023(b)(2)) is amended—

24 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

25 and
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1 (B) by striking ‘‘$120,000,000’’ and all

2 that follows through ‘‘1995’’, and inserting

3 ‘‘$93,665,000 for each of the fiscal years 1996,

4 1997, 1998, 1999, and 2000’’.

5 (4) SCHOOL-BASED MEALS FOR VOLUN6 TEERS.—Section 303(b)(3) of the Older Americans

7 Act of 1965 (42 U.S.C. 3023(b)(3)) is amended8 (1) by striking ‘‘are’’ and inserting ‘‘is’’,

9 and

10 (2) by striking ‘‘fiscal year 1992’’ and all

11 that follows through ‘‘1995’’, and inserting ‘‘for

12 each of the fiscal years 1996, 1997, 1998,

13 1999, and 2000’’.

14 (5) IN-HOME SERVICES.—Section 303(d) of the

15 Older Americans Act of 1965 (42 U.S.C. 3023(d))

16 is amended—

17 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

18 and

19 (B) by striking ‘‘$45,388,000’’ and all that

20 follows through ‘‘1995’’, and inserting

21 ‘‘$7,075,000 for each of the fiscal years 1996,

22 1997, 1998, 1999, and 2000’’.

23 (6) SPECIAL NEEDS.—Section 303(e) of the

24 Older Americans Act of 1965 (42 U.S.C. 3023(e))

25 is amended by striking ‘‘1992’’ and all that follows
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1 through ‘‘1995’’, and inserting ‘‘1996, 1997, 1998,

2 1999, and 2000’’.

3 (7) PREVENTIVE HEALTH, HEALTH EDU4 CATION, AND PROMOTION.—Section 303(f) of the

5 Older Americans Act of 1965 (42 U.S.C. 3023(f)) is

6 amended—

7 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

8 and

9 (B) by striking ‘‘$25,000,000’’ and all that

10 follows through ‘‘1995’’, and inserting

11 ‘‘$16,982,000 for each of the fiscal years 1996,

12 1997, 1998, 1999, and 2000’’.

13 (8) SUPPORTIVE ACTIVITIES FOR CARE14 TAKERS.—Section 303(g) of the Older Americans

15 Act of 1965 (42 U.S.C. 3023(g)) is amended—

16 (A) by striking ‘‘are’’ and inserting ‘‘is’’, and

17 (B) by striking ‘‘fiscal year 1992’’ and all that

18 follows through ‘‘1995’’, and inserting ‘‘each of the

19 fiscal years 1996, 1997, 1998, 1999, and 2000’’.

20 (9) PURCHASE OF AGRICULTURAL COMMOD21 ITIES FOR NUTRITION SERVICES.—Section

22 311(c)(1)(A) of the Older Americans Act of 1965

23 (42 U.S.C. 3030a(c)(1)(A)) is amended—

24 (A) by striking ‘‘are’’ and inserting ‘‘is’’,
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1 (B) by striking ‘‘$250,000,000’’ and all

2 that follows through ‘‘1994, and’’, and

3 (C) by striking ‘‘fiscal year 1995’’ and in4 serting ‘‘each of the fiscal years 1996, 1997,

5 1998, 1999, and 2000’’.

6 (d) AUTHORIZATION OF APPROPRIATIONS FOR TITLE

7 IV OF THE ACT.—

8 (1) TRAINING, RESEARCH, AND DISCRETIONARY

9 PROJECTS AND PROGRAMS.—Section 431(a)(1) of

10 the Older Americans Act of 1965 (42 U.S.C.

11 3037(a)(1)) is amended—

12 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

13 and

14 (B) by striking ‘‘$72,000,000’’ and all that

15 follows through ‘‘1995’’, and inserting

16 ‘‘$25,735,000 for each of the fiscal years 1996,

17 1997, 1998, 1999, and 2000’’.

18 (2) TRAINING.—Section 431(b) of the Older

19 Americans Act of 1965 (42 U.S.C. 3037(b)) is

20 amended by striking ‘‘1992’’ and all that follows

21 through ‘‘1995’’, and inserting ‘‘1996, 1997, 1998,

22 1999, and 2000’’.

23 (e) AUTHORIZATION OF APPROPRIATIONS FOR TITLE

24 VI OF THE ACT.—Section 633(a) of the Older Americans

25 Act of 1965 (42 U.S.C. 3037n(a)) is amended—
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1 (1) by striking ‘‘are’’ and inserting ‘‘is’’, and

2 (2) by striking ‘‘$30,000,000’’ and all that fol3 lows through ‘‘1995’’, and inserting ‘‘$16,902,000

4 for each of the fiscal years 1996, 1997, 1998, 1999,

5 and 2000’’.

6 (f) AUTHORIZATION OF APPROPRIATIONS FOR TITLE

7 VII OF THE ACT.—

8 (1) OMBUDSMAN PROGRAM.—Section 702(a) of

9 the Older Americans Act of 1965 (42 U.S.C.

10 3058a(a)) is amended—

11 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

12 and

13 (B) by striking ‘‘$40,000,000’’ and all that

14 follows through ‘‘1995’’, and inserting

15 ‘‘$4,370,000 for each of the fiscal years 1996,

16 1997, 1998, 1999, and 2000’’.

17 (2) PREVENTION OF ELDER ABUSE, NEGLECT,

18 AND EXPLOITATION.—Section 702(b) of the Older

19 Americans Act of 1965 (42 U.S.C. 3058a(b)) is

20 amended—

21 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

22 and

23 (B) by striking ‘‘$15,000,000’’ and all that

24 follows through ‘‘1995’’, and inserting
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1 ‘‘$4,638,000 for each of the fiscal years 1996,

2 1997, 1998, 1999, and 2000’’.

3 (3) STATE ELDER RIGHTS AND LEGAL ASSIST4 ANCE DEVELOPMENT PROGRAM.—Section 702(c) of

5 the Older Americans Act of 1965 (42 U.S.C.

6 3058a(c)) is amended—

7 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

8 and

9 (B) by striking ‘‘fiscal year 1992’’ and all

10 that follows through ‘‘1995’’, and inserting

11 ‘‘each of the fiscal years 1996, 1997, 1998,

12 1999, and 2000’’.

13 (4) OUTREACH, COUNSELING, AND ASSISTANCE

14 PROGRAM.—Section 702(d) of the Older Americans

15 Act of 1965 (42 U.S.C. 3058a(d)) is amended—

16 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

17 and

18 (B) by striking ‘‘$15,000,000’’ and all that

19 follows through ‘‘1995’’, and inserting

20 ‘‘$1,976,000 for each of the fiscal years 1996,

21 1997, 1998, 1999, and 2000’’.

22 (5) NATIVE AMERICAN ORGANIZATION PROVI23 SION.—Section 751(d) of the Older Americans Act

24 of 1965 (42 U.S.C. 3058aa(d)) is amended—
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1 (A) by striking ‘‘are’’ and inserting ‘‘is’’,

2 and

3 (B) by striking ‘‘fiscal year 1992’’ and all

4 that follows through ‘‘1995’’, and inserting ‘‘for

5 each of the fiscal years 1996, 1997, 1998,

6 1999, and 2000’’.

7 (g) EFFECTIVE DATE.—The amendments made by

8 this section shall take effect on October 1, 1995.

9 SEC. 10308. TERMINATION OF FUNDING FOR THE COR10 PORATION FOR PUBLIC BROADCASTING

11 Part IV of title III of the Communications Act of

12 1934 (47 U.S.C. 390 to 399b), relating to assistance for

13 public telecommunications facilities, telecommunications

14 demonstrations, and the Corporation for Public Broad15 casting, is repealed.

16 Subtitle E—Employment Program

17 Reform

18 SEC. 10401. TERMINATION OF GENERAL TRADE ADJUST19 MENT ASSISTANCE.

20 (a) TERMINATION OF PROGRAM EXTENSION.—(1)

21 Section 285(c)(1) of the Trade Act of 1974 (19 U.S.C.

22 2271 preceding note), is amended by striking ‘‘1998’’ and

23 inserting ‘‘1995’’.

24 (2) Section 245(a) of the Trade Act of 1974 (19

25 U.S.C. 2317(a)) is amended by striking ‘‘each of the fiscal
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1 years 1993, 1994, 1995, 1996, 1997, and 1998’’ and in2 serting ‘‘fiscal year 1995’’.

3 (b) CONFORMING AMENDMENT.—Section

4 236(a)(2)(A) of the Trade Act of 1974 (19 U.S.C.

5 2296(a)(2)(A)) is amended by striking ‘‘, except that’’ and

6 all that follows through ‘‘$70,000,000’’.

7 SEC. 10402. EXTENSION TO ALL STATES OF RULE PROVID8 ING FOR REDUCTION OF SOCIAL SECURITY

9 DISABILITY INSURANCE BENEFITS UPON RE10 CEIPT OF WORKERS’ COMPENSATION BENE11 FITS.

12 (a) PREEMPTION OF STATE LAWS REDUCING PERI13 ODIC BENEFITS BY REASON OF ENTITLEMENT TO DIS14 ABILITY INSURANCE BENEFITS.—Section 224(d) of the

15 Social Security Act (42 U.S.C. 224a(d)) is amended to

16 read as follows:

17 ‘‘(d) The provisions of this section shall supersede

18 any provision of a law or plan of any State, of any political

19 subdivision (as that term is used in section 218(b)(2)),

20 or of any instrumentality of two or more States (as that

21 term is used in section 218(g)) to the extent that the effect

22 of such provision is to reduce periodic benefits referred

23 to in subparagraph (A) or (B) of subsection (a)(2) of any

24 individual under such law or plan on the basis of the enti25 tlement of such individual to benefits under section 223.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall apply with respect to individuals who

3 first become entitled to benefits under section 223(a) of

4 the Social Security Act for months beginning on or after

5 January 1, 1996.

6 SEC. 10403. SERVICE CONTRACT ACT OF 1965.

7 (a) REPEAL.—The Service Contract Act of 1965 (41

8 U.S.C. 351 et seq.) is repealed.

9 (b) APPLICATION.—The amendment made by sub10 section (a) shall not apply to a contract which was entered

11 into before the date of the enactment of this Act and to

12 which the Service Contract Act of 1965 applied.

13 SEC. 10404. REDUCTION IN OVERHEAD EXPENSES OF DE14 PARTMENT OF LABOR.

15 (a) IN GENERAL.—The amount obligated by the De16 partment of Labor during fiscal year 1996 for overhead

17 expenses shall not exceed an amount sufficient to reduce

18 outlays for such expenses during such fiscal year (as com19 pared to such outlays during fiscal year 1995) by

20 $67,000,000.

21 (b) OVERHEAD EXPENSES.—For purposes of this

22 section, the term ‘‘overhead expenses’’ means expenses

23 within the following object classifications established by

24 the Director of the Office of Management and Budget:

25 (1) 21.0 (travel and transportation of persons).
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1 (2) 22.0 (transportation of things).

2 (3) 23.1 (rental payments to GSA).

3 (4) 23.3 (communications, utilities, and mis4 cellaneous charges).

5 (5) 24.0 (printing and reproduction).

6 (6) 25.1 (consulting services).

7 (7) 25.2 (other services).

8 (8) 25.5 (research and development contracts).

9 (9) 26.0 (supplies and materials).

10 (10) 31 (equipment).

11 TITLE XI—HEALTH

12 Subtitle A—Administrative Reform

13 SEC. 11001. REDUCTION IN OVERHEAD EXPENSES OF DE14 PARTMENT OF HEALTH AND HUMAN SERV15 ICES.

16 (a) IN GENERAL.—The amount obligated by the De17 partment of Health and Human Services during fiscal

18 year 1996 for overhead expenses shall not exceed an

19 amount sufficient to reduce outlays for such expenses dur20 ing such fiscal year (as compared to such outlays during

21 fiscal year 1995) by $346,000,000.

22 (b) OVERHEAD EXPENSES.—For purposes of this

23 section, the term ‘‘overhead expenses’’ means expenses

24 within the following object classifications established by

25 the Director of the Office of Management and Budget:
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1 (1) 21.0 (travel and transportation of persons).

2 (2) 22.0 (transportation of things).

3 (3) 23.1 (rental payments to GSA).

4 (4) 23.3 (communications, utilities, and mis5 cellaneous charges).

6 (5) 24.0 (printing and reproduction).

7 (6) 25.1 (consulting services).

8 (7) 25.2 (other services).

9 (8) 25.5 (research and development contracts).

10 (9) 26.0 (supplies and materials).

11 (10) 31 (equipment).

12 Subtitle B—University Research

13 Regarding Health and Other

14 Matters

15 SEC. 11101. FEDERALLY-SUPPORTED UNIVERSITY RE16 SEARCH; REDUCTION IN RATES FOR INDI17 RECT COSTS OF RESEARCH.

18 (a) AUTHORITY OF FEDERAL AGENCIES REGARDING

19 INDIRECT COSTS OF SUPPORTED RESEARCH.—In making

20 an award of financial assistance to an institution of higher

21 education for a fiscal year for a project of research, the

22 head of the Federal agency involved is subject to the fol23 lowing:

24 (1) The agency head may in accordance with

25 this section authorize the institution to expend a
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1 portion of the award for costs that are indirectly re2 lated to the conduct of the project, and are appro3 priate for the institution to maintain the program or

4 programs of which the project is a part (which costs

5 regarding a project of research are referred to in

6 this section as ‘‘indirect costs’’).

7 (2) The agency head may not make the award

8 for the project unless the institution—

9 (A) agrees that the award will be expended

10 for the indirect costs of the project only in ac11 cordance with determinations made under this

12 section by the agency head regarding the

13 project; and

14 (B) certifies to the agency head that each

15 award of financial assistance provided by the

16 agency head to the institution for the imme17 diately preceding fiscal year for a project of re18 search was expended in accordance with the de19 terminations made under this section regarding

20 the project.

21 (b) DIRECT AND INDIRECT COSTS AS TOTAL

22 AMOUNT OF ASSISTANCE.—With respect to a project of

23 research for which the head of a Federal agency is under

24 subsection (a)(1) authorizing an award for a fiscal year

25 to be expended for indirect costs, the total amount of the
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1 award provided for the project for such year shall consist

2 of an amount provided for the direct costs of the project,

3 together with the sum of—

4 (1) the aggregate amount the agency head de5 termines under subparagraph (A) of subsection

6 (c)(1) for the administrative categories of indirect

7 cost; and

8 (2) the aggregate amount the agency head de9 termines under subparagraph (B) of such subsection

10 for the nonadministrative categories of such costs.

11 (c) DETERMINATION OF AMOUNTS FOR ADMINISTRA12 TIVE AND NONADMINISTRATIVE CATEGORIES.—

13 ‘‘(1) IN GENERAL.—With respect to a project of

14 research for which the head of a Federal agency is

15 under subsection (a)(1) authorizing an award for a

16 fiscal year to be expended for indirect costs, the

17 agency head, after consultation with the institution

18 of higher education involved and after consideration

19 of relevant records and materials, shall make a de20 termination of—

21 ‘‘(A) the amount, expressed as a percent22 age in accordance with paragraph (2), that is

23 authorized to be expended for the administra24 tive categories of indirect cost (determined indi-
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1 vidually for each of such categories or deter2 mined in the aggregate for the categories); and

3 ‘‘(B) the amount, expressed as a percent4 age in accordance with paragraph (2), that is

5 authorized to be made for the nonad6 ministrative categories of indirect cost (deter7 mined individually for each of such categories

8 or determined in the aggregate for the cat9 egories).

10 ‘‘(2) CATEGORY PERCENTAGES; MODIFIED DI11 RECT COSTS.—The amounts determined under sub12 paragraphs (A) and (B) of paragraph (1) for a fiscal

13 year with respect to a project of research shall be

14 determined as a percentage of the modified direct

15 costs of the project. The percentage so determined

16 may not exceed the applicable percentage specified

17 in subsection (d), and shall be in effect only during

18 the fiscal year for which the financial assistance in19 volved is provided.

20 (d) GENERAL LIMITATIONS REGARDING CATEGORY

21 PERCENTAGES.—

22 (1) REDUCTION IN RATE FOR ADMINISTRATIVE

23 CATEGORIES.—With respect to an award made by

24 the head of a Federal agency to an institution of

25 higher education for a fiscal year for a project of
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1 research, the percentage determined under sub2 section (c)(2) for the fiscal year for an administra3 tive category of indirect costs may not exceed 90

4 percent of an amount equal to the mean average of

5 the percentages applicable to the institution for the

6 category for awards by the agency head to the insti7 tution for fiscal year 1995.

8 (2) REDUCTION IN RATE FOR NONAD9 MINISTRATIVE CATEGORIES.—With respect to an

10 award made by the head of a Federal agency to an

11 institution of higher education for a fiscal year for

12 a project of research, the percentage determined

13 under subsection (c)(2) for the fiscal year for a

14 nonadministrative category of indirect costs may not

15 exceed 90 percent of an amount equal to the mean

16 average of the percentages applicable to the institu17 tion for the category for awards by the agency head

18 to the institution for fiscal year 1995.

19 (e) INSTITUTION-SPECIFIC UNIFORM RATES ACROSS

20 AWARDS.—With respect to multiple awards made by the

21 head of a Federal agency to an institution of higher edu22 cation for a fiscal year for projects of research, the agency

23 head may, for each of the categories of indirect costs (ad24 ministrative and nonadministrative), determine a single

25 percentage under subsection (c) that will be applicable to
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1 the category for all such awards by the agency head to

2 the institution for the fiscal year. Any such determination

3 is subject to subsection (d).

4 (f) FAILURE TO COMPLY WITH LIMITATION.—In the

5 case of an institution of higher education making an

6 agreement under subsection (a)(2) regarding expenditures

7 for the indirect costs of a project of research, if the head

8 of the Federal agency involved determines that the institu9 tion has made an expenditure in violation of the agree10 ment, the agency head shall recover from the institution

11 an amount equal to the amount of the expenditure, to12 gether with an amount representing interest on the

13 amount of such expenditure.

14 (g) DEFINITIONS.—For purposes of this section:

15 (1) The term ‘‘administrative categories’’, with

16 respect to the indirect costs of a project of research,

17 means the categories of general administration, de18 partmental administration, and administration of

19 the project of research involved (also known as spon20 sored project administration).

21 (2) The term ‘‘award’’ means an award of fi22 nancial assistance.

23 (3) The term ‘‘direct costs’’, with respect to a

24 project of research, has the meaning given such term
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•HR 1923 IH

1 by the Director of the Office of Management and

2 Budget.

3 (4) The term ‘‘Federal agency’’ means each de4 partment, agency or instrumentality of the Federal

5 Government, including an executive agency as de6 fined in section 105 of title 5, United States Code.

7 (5) The term ‘‘financial assistance’’, with re8 spect to a project of research, means a grant, coop9 erative agreement, or contract.

10 (6)(A) The term ‘‘indirect cost’’, with respect to

11 a project of research, means the costs described in

12 subsection (a)(1), consisting of the 7 categories de13 scribed in subparagraph (B), as such costs (and cat14 egories) are defined in the document issued by the

15 Director of the Office of Management and Budget

16 and designated by such Director as OMB Circular

17 A–21 (or as defined in any document issued by such

18 Director as a successor to OMB Circular A–21), ex19 cept that such term does not include any cost dis20 allowed for purposes of title 48, Code of Federal

21 Regulations (relating to the Federal Acquisition

22 Regulations System).

23 (B) The categories referred to in subparagraph

24 (A) are the categories of general administration, de25 partmental administration, administration of the
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•HR 1923 IH

1 project of research involved (also known as spon2 sored project administration), operations and main3 tenance, student services (in the case of an entity

4 that is an educational institution), libraries (in the

5 case of such an entity), and buildings and equip6 ment.

7 (7) The term ‘‘institution of higher education’’

8 has the meaning given such term in section 1201(a)

9 of the Higher Education Act of 1965.

10 (8) The term ‘‘modified direct costs’’, with re11 spect to a project of research, has the meaning given

12 such term by the Director of the Office of Manage13 ment and Budget.

14 (9) The term ‘‘nonadministrative categories’’,

15 with respect to the indirect costs of a project of re16 search, means the categories of operations and

17 maintenance, student services (in the case of an en18 tity that is an educational institution), libraries (in

19 the case of such an entity), and buildings and equip20 ment.

21 (h) EFFECTIVE DATE.—This section is effective in

22 the case of awards of financial assistance made for fiscal

23 year 1996 or any subsequent fiscal year.
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1 SEC. 11102. REDUCTION IN BUDGET OF NATIONAL INSTI2 TUTES OF HEALTH.

3 Title IV of the Public Health Service Act (42 U.S.C.

4 281 et seq.) is amended by adding at the end the following

5 part:

6 ‘‘PART J—REDUCTION IN BUDGET OF NATIONAL

7 INSTITUTES OF HEALTH

8 ‘‘REDUCTION IN BUDGET

9 ‘‘SEC. 499B. (a) 1995 LEVELS LESS SAVINGS RE10 GARDING INDIRECT COST RATES.—Notwithstanding any

11 other provision of law, the authorizations of appropria12 tions established for carrying out this title for a fiscal year

13 are effective only to the extent that the authorizations for

14 the fiscal year do not, in the aggregate, exceed the follow15 ing amount, as applicable to the fiscal year:

16 $10,841,598,000 for fiscal year 1996, $10,475,098,000

17 for fiscal year 1997, $10,109,598,000 for fiscal year 1998,

18 $10,071,098,000 for fiscal year 1999, and

19 $10,032,598,000 for fiscal year 2000.

20 ‘‘(b) PRESUMED PER-PROGRAM AUTHORIZATION

21 LEVEL.—For each of the fiscal years specified in sub22 section (a), the authorization of appropriations for each

23 program under this title is deemed to be an amount equal

24 to the appropriation made for the program for the preced25 ing fiscal year, unless a provision of this title specifies that

26 this subsection is not applicable to the program.
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1 ‘‘(c) PRO RATA REDUCTIONS IN AUTHORIZATIONS.—

2 If the aggregate of the authorizations of appropriations

3 established for carrying out this title for a fiscal year (in4 cluding authorizations established under subsection (b))

5 exceeds the amount applicable under subsection (a) to the

6 fiscal year, each such authorization is reduced pro rata

7 by the amount necessary for the aggregate of the author8 izations to equal the applicable amount.’’.

9 SEC. 11103. REDUCTION IN HEALTH PROFESSIONS BUDGET

10 OF HEALTH RESOURCES AND SERVICES AD11 MINISTRATION.

12 Title VII of the Public Health Service Act (42 U.S.C.

13 292 et seq.) is amended by adding at the end the following

14 part:

15 ‘‘PART H—REDUCTION IN HEALTH PROFESSIONS

16 BUDGET

17 ‘‘SEC. 799A. PROGRAMS FOR MINORITY AND DISADVAN18 TAGED STUDENTS AS EXCLUSIVE TITLE VII

19 PROGRAMS.

20 ‘‘(a) EFFECT ON OTHER PROGRAMS.—For fiscal

21 year 1996 or any subsequent fiscal year, the authorization

22 of appropriations established in subsection (b) for the fis23 cal year is the exclusive authorization of appropriations

24 for such year under this title, except as provided in sub-
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1 section (c). The preceding sentence applies notwithstand2 ing any other provision of law.

3 ‘‘(b) AUTHORIZATIONS OF APPROPRIATIONS RE4 GARDING MINORITY AND DISADVANTAGED STUDENTS.—

5 For the purpose of carrying out programs under this title

6 that are designed to increase the enrollment of minority

7 and economically disadvantaged students, there are au8 thorized to be appropriated such sums as may be nec9 essary for each of the fiscal years 1996 through 1998.

10 ‘‘(c) EXCEPTION REGARDING FEDERAL RESPON11 SIBILITIES UNDER PROGRAM FOR HEALTH EDUCATION

12 ASSISTANCE LOANS TO GRADUATE STUDENTS.—Sub13 section (a) does not apply to the authorization of appro14 priations established in section 720. The preceding sen15 tence does not provide any credit authority for such pro16 gram in addition to that provided in section 702.’’.

17 SEC. 11104. CLOSURE OF UNIFORMED SERVICES UNIVER18 SITY OF THE HEALTH SCIENCES.

19 (a) CLOSURE REQUIRED.—Section 2112 of title 10,

20 United States Code, is amended—

21 (1) in subsection (c)—

22 (A) by inserting ‘‘and the closure’’ after

23 ‘‘The development’’; and
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1 (B) by striking out ‘‘subsection (a)’’ and

2 inserting in lieu thereof ‘‘subsections (a) and

3 (b)’’; and

4 (2) by striking out subsection (b) and inserting

5 in lieu thereof the following new subsection:

6 ‘‘(b)(1) Not later than September 30, 1998, the Sec7 retary of Defense shall close the University. To achieve

8 the closure of the University by that date, the Secretary

9 shall begin to terminate the operations of the University

10 beginning in fiscal year 1995. On account of the required

11 closure of the University under this subsection, no stu12 dents may be admitted to begin studies in the University

13 after the date of the enactment of this subsection.

14 ‘‘(2) Section 2687 of this title and any other provi15 sion of law establishing preconditions to the closure of any

16 activity of the Department of Defense shall not apply with

17 regard to the termination of the operations of the Univer18 sity or to the closure of the University pursuant to this

19 subsection.’’.

20 (b) FINAL GRADUATION OF STUDENTS.—Section

21 2112(a) of such title is amended—

22 (1) in the second sentence, by striking out ‘‘,

23 with the first class graduating not later than Sep24 tember 21, 1982.’’ and inserting in lieu thereof ‘‘,
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•HR 1923 IH

1 except that no students may be awarded degrees by

2 the University after September 30, 1998.’’; and

3 (2) by adding at the end the following new sen4 tence: ‘‘On a case-by-case basis, the Secretary of De5 fense may provide for the continued education of a

6 person who, immediately before the closure of the

7 University under subsection (b), was a student in

8 the University and completed substantially all re9 quirements necessary to graduate from the Univer10 sity.’’.

11 (c) TERMINATION OF UNIVERSITY BOARD OF RE12 GENTS.—Section 2113 of such title is amended by adding

13 at the end the following new subsection:

14 ‘‘(k) The Board shall terminate on September 30,

15 1998, except that the Secretary of Defense may terminate

16 the Board before that date as part of the termination of

17 the operations of the University under section 2112(b) of

18 this title.’’.

19 (d) PROHIBITION ON RECIPROCAL AGREEMENTS.—

20 Section 2114(e)(1) of such title is amended by adding at

21 the end the following new sentence: ‘‘No agreement may

22 be entered into under this subsection after the date of the

23 enactment of this sentence, and all such agreements shall

24 terminate not later than September 30, 1998.’’.
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1 (e) CONFORMING AMENDMENTS.—(1) Section 178 of

2 such title, relating to the Henry M. Jackson Foundation

3 for the Advancement of Military Medicine, is amended—

4 (A) in subsection (b), by inserting after ‘‘Uni5 formed Services University of the Health Sciences,’’

6 the following: ‘‘or after the closure of the University,

7 with the Department of Defense,’’;

8 (B) in subsection (c)(1)(B), by striking out

9 ‘‘the Dean of the Uniformed Services University of

10 the Health Sciences’’ and inserting in lieu thereof ‘‘a

11 person designated by the Secretary of Defense’’; and

12 (C) in subsection (g)(1), by inserting after

13 ‘‘Uniformed Services University of the Health

14 Sciences,’’ the following: ‘‘or after the closure of the

15 University, the Secretary of Defense’’.

16 (2) Section 466(a)(1)(B) of the Public Health Service

17 Act (42 U.S.C. 286a(a)(1)(B)), relating to the Board of

18 Regents of the National Library of Medicine, is amended

19 by striking out ‘‘the Dean of the Uniformed Services Uni20 versity of the Health Sciences,’’.

21 (f) CLERICAL AMENDMENTS.—(1) The heading of

22 section 2112 of title 10, United States Code, is amended

23 to read to read as follows:
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1 ‘‘§ 2112. Establishment and closure of University’’.

2 (2) The item relating to such section in the table of

3 sections at the beginning of chapter 104 of such title is

4 amended to read as follows:

‘‘2112. Establishment and closure of University.’’.

5 Subtitle C—Medicaid Reforms

6 SEC. 11201. REDUCTION IN FEDERAL PAYMENTS FOR DIS7 PROPORTIONATE SHARE HOSPITALS.

8 (a) IN GENERAL.—Section 1923 of the Social Secu9 rity Act (42 U.S.C. 1396r–4) is amended by adding at

10 the end the following new subsection:

11 ‘‘(h) REDUCTION IN FEDERAL FINANCIAL PARTICI12 PATION FOR DISPROPORTIONATE SHARE ADJUST13 MENTS.—

14 ‘‘(1) IN GENERAL.—Notwithstanding any other

15 provision of this section, the amount of payments

16 under section 1903(a) with respect to any payment

17 adjustment made under this section for hospitals in

18 a State for quarters in a fiscal year shall not exceed

19 the applicable percentage of the amount otherwise

20 determined under subsection (f)

21 ‘‘(2) APPLICABLE PERCENTAGE DEFINED.—In

22 paragraph (1), the applicable percentage for a fiscal

23 year is as follows:

24 ‘‘(A) For fiscal year 1995, 80 percent.

25 ‘‘(B) For fiscal year 1996, 70 percent.
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1 ‘‘(C) For fiscal year 1997, 55 percent.

2 ‘‘(D) For fiscal year 1998, 40 percent.’’.

3 (b) CONFORMING AMENDMENT.—Section 1923(c) of

4 such Act (42 U.S.C. 1396r–4(c)) is amended in the matter

5 preceding paragraph (1) by striking ‘‘(f) and (g)’’ and in6 serting ‘‘(f), (g), and (h)’’.

7 SEC. 11202. IMPOSITION OF STATE LIMITS ON APPROVED

8 NURSING FACILITY BEDS.

9 (a) STATE PLAN REQUIREMENT.—Section 1902(a)

10 of the Social Security Act (42 U.S.C. 1396a(a)) is amend11 ed—

12 (1) by striking ‘‘and’’ at the end of paragraph

13 (61);

14 (2) by striking the period at the end of para15 graph (62) and inserting ‘‘; and’’; and

16 (3) by inserting after paragraph (62) the fol17 lowing new paragraph:

18 ‘‘(63) provide that the State agency shall pro19 vide assurances satisfactory to the Secretary that

20 the State has in effect laws prohibiting a nursing fa21 cility from opening additional beds without a certifi22 cate of need issued by the State in accordance with

23 guidelines established by the State and approved by

24 the Secretary based on the ratio of nursing facility
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1 beds to the number of individuals residing in the ap2 plicable area who are likely to use such beds.’’.

3 (b) EFFECTIVE DATE.—(1) Except as provided in

4 paragraph (2), the amendments made by subsection (a)

5 shall apply to calendar quarters beginning on or after Oc6 tober 1, 1995, without regard to whether or not final regu7 lations to carry out such amendments have been promul8 gated by such date.

9 (2) In the case of a State plan for medical assistance

10 under title XIX of the Social Security Act which the Sec11 retary of Health and Human Services determines requires

12 State legislation (other than legislation appropriating

13 funds) in order for the plan to meet the additional require14 ments imposed by the amendments made by subsection

15 (a), the State plan shall not be regarded as failing to com16 ply with the requirements of such title solely on the basis

17 of its failure to meet these additional requirements before

18 the first day of the first calendar quarter beginning after

19 the close of the first regular session of the State legisla20 ture that begins after the date of the enactment of this

21 Act. For purposes of the previous sentence, in the case

22 of a State that has a 2-year legislative session, each year

23 of such session shall be deemed to be a separate regular

24 session of the State legislature.
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1 SEC. 11203. REDUCING TO 50 PERCENT THE MATCHING

2 RATE FOR ADMINISTRATIVE COSTS UNDER

3 THE MEDICAID PROGRAM.

4 (a) IN GENERAL.—Section 1903(a) of the Social Se5 curity Act (42 U.S.C. 1396b(a)) is amended to read as

6 follows:

7 ‘‘(a) From the sums appropriated therefore, the Sec8 retary (except as otherwise provided in this section) shall

9 pay to each State that has a plan approved under this

10 title, for each quarter—

11 ‘‘(1) an amount with respect to total expendi12 tures during such quarter under the State plan for

13 medical assistance (as defined in section 1905(a))

14 equal to the sum of—

15 ‘‘(A) an amount equal to 90 percent of

16 such expenditures for family planning services

17 and supplies, plus

18 ‘‘(B) an amount equal to the Federal med19 ical assistance percentage (as defined in section

20 1905(b), subject to subsections (g) and (j) of

21 this section), of the remainder of such expendi22 tures; plus

23 ‘‘(2) subject to section 1919(g)(3)(C), an

24 amount equal to 45 percent of the remainder of the

25 expenditures during such quarter as found necessary
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1 by the Secretary for the proper and efficient admin2 istration of the State plan.’’.

3 (b) CONFORMING AMENDMENTS.—

4 (1) FRAUD CONTROL UNITS.—Section 1903(b)

5 of such Act (42 U.S.C. 1396b(b)) is amended by

6 striking paragraph (3).

7 (2) MEDICAID MANAGEMENT INFORMATION

8 SYSTEMS.—Section 1903(r) of such Act (42 U.S.C.

9 1396b(r)) is amended—

10 (A) by amending paragraph (1) to read as

11 follows:

12 ‘‘(1) In order to receive payments under subsection

13 (a)(2) without being subject to per centum reductions set

14 forth in paragraph (2), a State must have in operation

15 mechanized claims processing and information retrieval

16 systems approved by the Secretary (of the type approved

17 since October 7, 1980) which are determined to be likely

18 to provide more efficient, economical, and effective admin19 istration of the plan and which—

20 ‘‘(A) are compatible with the claims processing

21 and information retrieval systems used in the admin22 istration of title XVIII, and

23 ‘‘(B) include provision for prompt written notice

24 to each individual who is furnished services covered

25 by the plan, or to each individual in a sample group
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1 of such individuals, of the specific services (other

2 than confidential services) so covered, the name of

3 the person or persons furnishing the services, the

4 date or dates on which the services were furnished,

5 and the amount of the payment or payments made

6 under the plan on account of the services.’’;

7 (B) by striking paragraphs (2) and (3),

8 and redesignating paragraphs (4) through (8)

9 as paragraphs (2) through (6), respectively;

10 (C) in paragraph (2), as so redesignated—

11 (i) in subparagraph (A), by striking

12 ‘‘paragraph (6)’’ and inserting ‘‘paragraph

13 (4)’’, and

14 (ii) in subparagraph (B)—

15 (I) by striking ‘‘subsection

16 (a)(3)(B)’’ and inserting ‘‘subsection

17 (a)(2)’’; and

18 (II) by striking ‘‘not less than 50

19 per centum and not more than 70 per

20 centum’’ and inserting ‘‘not less than

21 25 per centum and not more than 45

22 per centum’’;

23 (D) in paragraph (3), as so redesignated—

24 (i) in the matter in subparagraph (A)

25 preceding clause (i), by striking ‘‘sub-
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1 section (a)(3)(B)’’ and inserting ‘‘para2 graph (1)’’, and

3 (ii) in subparagraphs (A)(iii) and (B),

4 by striking ‘‘paragraph (6)’’ and inserting

5 ‘‘paragraph (4)’’; and

6 (E) in paragraph (4), as so redesignated—

7 (i) by striking subparagraph (C) and

8 redesignating subparagraphs (D) through

9 (J) as subparagraphs (C) through (I), and

10 (ii) in subparagraph (H), as redesig11 nated, by striking ‘‘subsection (a)(3) of

12 this section’’ and inserting ‘‘subsection

13 (a)(2)’’.

14 (3) NURSING HOME ENFORCEMENT.—Section

15 1919 of such Act (42 U.S.C. 1396r) is amended—

16 (A) in subsection (g)(3)(C), by striking

17 ‘‘section 1903(a)(2)(D)’’ and inserting ‘‘section

18 1903(a)(2) with respect to amounts expended

19 for State activities under this subsection’’, and

20 (B) in subsection (h)(2), by striking

21 ‘‘1903(a)(7)’’ and inserting ‘‘1903(a)(2)’’ each

22 place it appears in subparagraphs (E) and (F).

23 (4) PEER REVIEW FUNDING.—Section 1158 of

24 such Act (42 U.S.C. 1320c–7) is amended—

25 (A) by striking ‘‘(a)’’, and
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1 (B) by striking subsection (b).

2 (c) EFFECTIVE DATE.—The amendments made by

3 this section shall apply to quarters beginning on or after

4 October 1, 1995.

5 Subtitle D—Reforms in Health

6 Care Block Grants

7 SEC. 11301. CONSOLIDATION OF CERTAIN BLOCK GRANTS.

8 (a) IN GENERAL.—Title XIX of the Public Health

9 Service Act (42 U.S.C. 300w et seq.) is amended by add10 ing at the end the following part:

11 ‘‘PART C—CONSOLIDATION OF HEALTH-RELATED

12 BLOCK GRANTS

13 ‘‘SEC. 1981. CONSOLIDATED PROGRAM OF FORMULA

14 GRANTS.

15 ‘‘In the case of each State that in accordance with

16 section 1983 submits to the Secretary an application for

17 fiscal year 1996 or any subsequent fiscal year, the Sec18 retary shall make a grant for the year to the State for

19 the purposes specified in section 1982. The grant shall

20 consist of the allotment determined for the State under

21 section 1984.

22 ‘‘SEC. 1982. PURPOSES OF GRANTS; EFFECT ON SEPARATE

23 PROGRAMS.

24 ‘‘(a) IN GENERAL.—The Secretary may make a grant

25 under section 1981 only if the State involved agrees that
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1 the grant will be expended only for the purposes author2 ized in any of the following programs (as in effect for fis3 cal year 1995):

4 ‘‘(1) The program under part A of this title (re5 lating to block grants for preventive health and

6 health services).

7 ‘‘(2) The program under subpart 1 of part B

8 of this title (relating to block grants for community

9 mental health services).

10 ‘‘(3) The program under subpart 2 of part B

11 of this title (relating to block grants for the preven12 tion and treatment of substance abuse).

13 ‘‘(4) The program under title V of the Social

14 Security Act (relating to block grants for maternal

15 and child health services).

16 ‘‘(b) EFFECT ON SEPARATE PROGRAMS.—For fiscal

17 year 1996 and subsequent fiscal years:

18 ‘‘(1) No amounts are authorized to be appro19 priated under any of the programs specified in sub20 section (a), notwithstanding any other provision of

21 law.

22 ‘‘(2) The programs are in effect only to the ex23 tent provided in subsection (a).
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1 ‘‘(c) RULE OF CONSTRUCTION.—With respect to

2 compliance with the agreement made by a State under

3 subsection (a):

4 ‘‘(1) The State may expend a grant under sec5 tion 1981 for any or all of the purposes authorized

6 in the four programs specified in such subsection.

7 ‘‘(2) The State is not required to expend the

8 grant for each of the four categories of services or

9 activities with which the four programs were, respec10 tively, concerned.

11 ‘‘SEC. 1983. APPLICATION FOR GRANT.

12 ‘‘The Secretary may make a grant under section

13 1981 only if an application for the grant is submitted to

14 the Secretary by the date specified by the Secretary, and

15 the application is in such form, is made in such manner,

16 and contains such agreements, assurances, and informa17 tion as the Secretary determines to be necessary to carry

18 out this part.

19 ‘‘SEC. 1984. AMOUNT OF ALLOTMENT.

20 ‘‘(a) IN GENERAL.—

21 ‘‘(1) ALLOTMENT.—For purposes of section

22 1981—

23 ‘‘(A) the allotment determined under this

24 section for a State for a fiscal year is, subject

25 to subsection (g), the sum of the respective
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1 amounts determined for the State under sub2 sections (b) through (e); and

3 ‘‘(B) the allotment determined under this

4 section for a territory for a fiscal year is the

5 amount determined under subsection (h).

6 ‘‘(2) APPLICABILITY TO TERRITORIES.—For

7 purposes of this part, the term ‘State’ means each

8 of the several States and each of the territories, ex9 cept that, for purposes of paragraph (1) and sub10 sections (b) through (g), such term does not include

11 any territory.

12 ‘‘(b) AMOUNT RELATING TO FORMULAS IN PROGRAM

13 FOR PREVENTIVE HEALTH AND HEALTH SERVICES.—

14 For purposes of subsection (a)(1)(A), the amount under

15 this subsection for a State for a fiscal year shall be deter16 mined as follows:

17 ‘‘(1) The Secretary shall determine an amount

18 equal to 6.7 percent of the amount that is appro19 priated under section 1986 for the fiscal year and

20 available after compliance with section 1986(b).

21 ‘‘(2) Of the amount determined under para22 graph (1), 97.2 percent shall be applied to the for23 mula in effect under subsection (a) of section 1902

24 for fiscal year 1995.
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1 ‘‘(3) Of the amount determined under para2 graph (1), 2.8 percent shall be applied to the for3 mula in effect under subsection (b) of section 1902

4 for fiscal year 1995.

5 ‘‘(4) The amount determined under this sub6 section for the fiscal year is the sum of the amount

7 resulting under paragraph (2) and the amount re8 sulting under paragraph (3).

9 ‘‘(c) AMOUNT RELATING TO FORMULA IN PROGRAM

10 FOR COMMUNITY MENTAL HEALTH SERVICES.—For pur11 poses of subsection (a)(1)(A), the amount under this sub12 section for a State for a fiscal year shall be determined

13 as follows:

14 ‘‘(1) The Secretary shall determine an amount

15 equal to 11.7 percent of the amount that is appro16 priated under section 1986 for the fiscal year and

17 available after compliance with section 1986(b).

18 ‘‘(2) The amount determined under paragraph

19 (1) shall be applied to the formula in effect under

20 subsection (a) of section 1918 for fiscal year 1995,

21 and after application of the formula shall be ad22 justed to the extent required by subsection (b) of

23 such section (as in effect for fiscal year 1995).
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1 ‘‘(3) The amount determined under this sub2 section for the fiscal year is the amount resulting

3 under paragraph (2).

4 ‘‘(d) AMOUNT RELATING TO FORMULA IN PROGRAM

5 FOR PREVENTION AND TREATMENT OF SUBSTANCE

6 ABUSE.—For purposes of subsection (a)(1)(A), the

7 amount under this subsection for a State for a fiscal year

8 shall be determined as follows:

9 ‘‘(1) The Secretary shall determine an amount

10 equal to 52.5 percent of the amount that is appro11 priated under section 1986 for the fiscal year and

12 available after compliance with section 1986(b).

13 ‘‘(2) The amount determined under paragraph

14 (1) shall be applied to the formula in effect under

15 subsection (a) of section 1933 for fiscal year 1995,

16 and after application of the formula shall be ad17 justed to the extent required by subsection (b) of

18 such section (as in effect for fiscal year 1995).

19 ‘‘(3) The amount determined under this sub20 section for the fiscal year is the amount resulting

21 under paragraph (2).

22 ‘‘(e) AMOUNT RELATING TO FORMULA IN PROGRAM

23 FOR MATERNAL AND CHILD HEALTH SERVICES.—For

24 purposes of subsection (a)(1)(A), the amount under this
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1 subsection for a State for a fiscal year shall be determined

2 as follows:

3 ‘‘(1) The Secretary shall determine an amount

4 equal to 29.1 percent of the amount that is appro5 priated under section 1986 for the fiscal year and

6 available after compliance with section 1986(b).

7 ‘‘(2) The amount determined under paragraph

8 (1) shall be applied to the formula in effect under

9 section 502(c)(2) of the Social Security Act for fiscal

10 year 1995.

11 ‘‘(3) The amount determined under this sub12 section for the fiscal year is the amount resulting

13 under paragraph (2).

14 ‘‘(f) RULES OF CONSTRUCTION.—For purposes of

15 subsections (b) through (e):

16 ‘‘(1) In applying an amount to a formula, the

17 amount shall be used in the formula in lieu of the

18 funds that otherwise would be allocated by the for19 mula.

20 ‘‘(2) With respect to the data to be used in the

21 formula, the Secretary shall use the most recent

22 data that is reasonably available to the Secretary

23 (subject to any restrictions in the formula).

24 ‘‘(g) FUNDS FOR TRIBES AND TRIBAL ORGANIZA25 TIONS.—
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1 ‘‘(1) IN GENERAL.—From the allotment deter2 mined for a State for a fiscal year pursuant to sub3 section (a)(1)(A), the Secretary shall reserve an

4 amount determined in accordance with paragraph

5 (4) if the Secretary—

6 ‘‘(A) receives a request from the governing

7 body of an Indian tribe or tribal organization

8 within the State that funds under this part be

9 provided directly by the Secretary to such tribe

10 or organization; and

11 ‘‘(B) makes a determination that the mem12 bers of such tribe or tribal organization would

13 be better served by means of grants made di14 rectly by the Secretary under this.

15 ‘‘(2) TRIBE OR TRIBAL ORGANIZATION AS

16 GRANTEE.—The amount reserved by the Secretary

17 on the basis of a determination under paragraph (1)

18 shall, subject to paragraph (3), be granted to the In19 dian tribe or tribal organization serving the individ20 uals for whom such a determination has been made.

21 ‘‘(3) REQUIRED PLAN.—The Secretary may

22 make a grant under this subsection for a fiscal year

23 only if the Indian tribe or tribal organization in24 volved submits to the Secretary a plan for the fiscal
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1 year that meets such criteria as the Secretary may

2 prescribe.

3 ‘‘(4) AMOUNT OF GRANT.—For purposes of

4 paragraph (1), the amount reserved under this para5 graph for a fiscal year for an Indian tribe or tribal

6 organization shall be determined as follows:

7 ‘‘(A) The Secretary shall determine an

8 amount equal to the difference between—

9 ‘‘(i) the allotment made pursuant to

10 subsection (a)(1)(A) for the fiscal year for

11 the State involved; and

12 ‘‘(ii) the amount determined for the

13 State under subsection (e) for the fiscal

14 year.

15 ‘‘(B) The amount reserved under this

16 paragraph for the fiscal year is the product

17 of—

18 ‘‘(i) the amount determined under

19 subparagraph (A); and

20 ‘‘(ii) a percentage equal to the ratio

21 of—

22 ‘‘(I) the aggregate amount re23 ceived by the Indian tribe or tribal or24 ganization for fiscal year 1995 under

25 parts A and B; over
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1 ‘‘(II) the aggregate amounts re2 ceived by the State involved under

3 such parts for fiscal year 1995.

4 ‘‘(5) DEFINITION.—The terms ‘Indian tribe’

5 and ‘tribal organization’ have the same meaning

6 given such terms in subsections (b) and (c) of sec7 tion 4 of the Indian Self-Determination and Edu8 cation Assistance Act.

9 ‘‘(h) ALLOTMENTS FOR TERRITORIES.—For pur10 poses of section 1981, the allotment under this section for

11 a territory for a fiscal year shall be made from amounts

12 reserved under section 1986(b), and the amount of the

13 allotment shall be determined in a manner equivalent to

14 the manner in which an allotment for a State is deter15 mined pursuant to subsection (a)(1)(A).

16 ‘‘(i) DISPOSITION OF CERTAIN FUNDS.—

17 ‘‘(1) IN GENERAL.—Of the amounts available

18 for a fiscal year for grants under section 1981,

19 amounts described in paragraph (2), if any, shall be

20 allotted by the Secretary as grants to States that

21 submit applications in accordance with section 1983

22 for the fiscal year. The amount of such a grant for

23 a State shall be determined in a manner equivalent

24 to the manner in which the amount of a grant was

25 otherwise determined under this section for the
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1 State for the fiscal year, and the grant shall be sub2 ject to the same conditions as grants under section

3 1981.

4 ‘‘(2) SPECIFICATION OF AMOUNTS.—The

5 amounts referred to in paragraph (1) for a fiscal

6 year are any amounts that are not paid under sec7 tion 1981 to the States for the fiscal year as a result

8 of—

9 ‘‘(A) the failure of one or more States to

10 submit an application in accordance with sec11 tion 1983 for the fiscal year; or

12 ‘‘(B) one or more States informing the

13 Secretary that the State does not intend to ex14 pend the full amount of the grant made to the

15 State under section 1981 for the fiscal year.

16 ‘‘SEC. 1985. DEFINITIONS.

17 ‘‘For purposes of this part:

18 ‘‘(1) The term ‘State’ has the meaning given

19 such term in section 1984(a)(2).

20 ‘‘(2) The term ‘territory’ means each of the

21 Commonwealth of Puerto Rico, American Samoa,

22 Guam, the Commonwealth of the Northern Mariana

23 Islands, the Virgin Islands, Palau, the Marshall Is24 lands, and Micronesia.
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1 ‘‘SEC. 1986. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘(a) IN GENERAL.—For the purpose of carrying out

3 this part, there are authorized to be appropriated

4 $2,233,833,800 for fiscal year 1996, and $2,122,142,111

5 for fiscal year 1997 and each of the fiscal years 1998

6 through 2000.

7 ‘‘(b) ALLOCATION.—Of the amounts appropriated

8 under subsection (a) for a fiscal year, the Secretary shall

9 make available for grants under section 1981 to the terri10 tories an amount equal to the product of—

11 ‘‘(1) the amounts so appropriated; and

12 ‘‘(2) a percentage equal to the ratio of—

13 ‘‘(A) the aggregate amounts received by

14 the territories for fiscal year 1995 under parts

15 A and B and under title V of the Social Secu16 rity Act; and

17 ‘‘(B) the aggregate amounts appropriated

18 for fiscal year 1995 under sections 1901, 1920,

19 and 1935 and under section 501 of the Social

20 Security Act.’’.

21 (b) CONFORMING AMENDMENTS.—

22 (1) PROGRAM FOR PREVENTIVE HEALTH AND

23 HEALTH SERVICES.—Section 1901 of the Public

24 Health Service Act (42 U.S.C. 300w) is amended—

25 (A) in subsection (a), by striking ‘‘through

26 1997’’ and inserting ‘‘and 1995’’; and
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1 (B) by adding at the end the following sub2 section:

3 ‘‘(c) For fiscal year 1996 and subsequent fiscal years,

4 this part is subject to part C.’’.

5 (2) PROGRAM FOR COMMUNITY HEALTH SERV6 ICES.—Section 1920 of the Public Health Service

7 Act (42 U.S.C. 300x–9) is amended by adding at

8 the end the following subsection:

9 ‘‘(c) LIMITATION.—For fiscal year 1996 and subse10 quent fiscal years, this subpart is subject to part C.’’.

11 (3) PROGRAM FOR PREVENTION AND TREAT12 MENT OF SUBSTANCE ABUSE.—Section 1935 of the

13 Public Health Service Act (42 U.S.C. 300x–35) is

14 amended by adding at the end the following sub15 section:

16 ‘‘(c) LIMITATION.—For fiscal year 1996 and subse17 quent fiscal years, this subpart is subject to part C.’’.

18 (4) PROGRAM FOR MATERNAL AND CHILD

19 HEALTH SERVICES.—Section 501 of the Social Secu20 rity Act (42 U.S.C. 701) is amended—

21 (A) in subsection (a), in the matter preced22 ing paragraph (1), by striking ‘‘each fiscal year

23 thereafter’’ and inserting ‘‘each of the fiscal

24 years 1991 through 1995’’; and
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1 (B) by adding at the end the following sub2 section:

3 ‘‘(c) For fiscal year 1996 and subsequent fiscal years,

4 this part is subject to part C of title XIX of the Public

5 Health Service Act (relating to the consolidation of certain

6 programs).’’.

7 SEC. 11302. REDUCTION IN BUDGET FOR IMMUNIZATION

8 PROGRAMS; PROHIBITION REGARDING

9 WAREHOUSING OF VACCINES.

10 Section 317(j) of the Public Health Service Act (42

11 U.S.C. 247b(j)) is amended—

12 (1) in paragraph (1), in the first sentence—

13 (A) by striking ‘‘and’’ after ‘‘1991,’’; and

14 (B) by inserting before the period the fol15 lowing: ‘‘, $328,591,000 for fiscal year 1996,

16 $324,591,000 for fiscal year 1997,

17 $319,591,000 for fiscal year 1998,

18 $315,591,000 for fiscal year 1999, and

19 $310,591,000 for fiscal year 2000’’;

20 (2) by striking paragraph (2); and

21 (3) by adding at the end the following para22 graph:

23 ‘‘(2) In carrying out programs of the Department of

24 Health and Human Services under which the Secretary

25 provides for the storage of vaccines, the Secretary may
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1 not provide for the storage of all (or substantially all) of

2 the vaccines in a single storage facility.’’.

3 Subtitle E—Health Care Program

4 Reforms

5 SEC. 11401. REDUCTION IN BUDGET OF AGENCY FOR

6 HEALTH CARE POLICY AND RESEARCH.

7 Section 926 of the Public Health Service Act (42

8 U.S.C. 299c–5) is amended by adding at the end the fol9 lowing subsection:

10 ‘‘(f) TERMINATION OF FUNDING FOR AGENCY.—For

11 fiscal year 1996 and each subsequent fiscal year, this Act

12 does not provide any authorization of appropriations to

13 carry out this title.’’.

14 SEC. 11402. REDUCTION IN BUDGET FOR PROGRAMS TO

15 TREAT SUBSTANCE ABUSE.

16 Subpart 1 of part B of title V of the Public Health

17 Service Act (42 U.S.C. 290bb et seq.) is amended by add18 ing at the end the following section:

19 ‘‘REDUCTION IN TREATMENT BUDGET

20 ‘‘SEC. 514. (a) IN GENERAL.—Notwithstanding any

21 other provision of law, the authorizations of appropria22 tions established for carrying out this subpart and section

23 1971 for a fiscal year are effective only to the extent that

24 the authorizations for the fiscal year do not, in the aggre25 gate, exceed the following amount, as applicable to the fis26 cal year: $178,405,000 for fiscal year 1996, $170,405,000
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1 for fiscal year 1997, $163,405,000 for fiscal year 1998,

2 $155,405,000 for fiscal year 1999, and $148,405,000 for

3 fiscal year 2000.

4 ‘‘(b) PRESUMED PER-PROGRAM AUTHORIZATION

5 LEVEL.—For each of the fiscal years specified in sub6 section (a), the authorization of appropriations for each

7 program under this subpart and section 1971 is deemed

8 to be an amount equal to the appropriation made for the

9 program for the preceding fiscal year, unless a provision

10 of this subpart or section 1971 specifies that this sub11 section is not applicable to the program.

12 ‘‘(c) PRO RATA REDUCTIONS IN AUTHORIZATIONS.—

13 If the aggregate of the authorizations of appropriations

14 established for carrying out this subpart and section 1971

15 for a fiscal year (including authorizations established

16 under subsection (b)) exceeds the amount applicable under

17 subsection (a) to the fiscal year, each such authorization

18 is reduced pro rata by the amount necessary for the aggre19 gate of the authorizations to equal the applicable

20 amount.’’.

21 SEC. 11403. ABOLITION OF OFFICE OF THE SURGEON GEN22 ERAL OF THE PUBLIC HEALTH SERVICE

23 With respect to the Office of the Surgeon General

24 of the Public Service—
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1 (1) all authorities and personnel of the Office

2 are transferred to the Assistant Secretary for Health

3 of the Department of Health and Human Services;

4 (2) all unobligated portions of budget authority

5 allocated for the Office are rescinded; and

6 (3) the Office, and the position of such Surgeon

7 General, are terminated.

8 Subtitle F—Federal Employee

9 Health Care Reform

10 SEC. 11501. GOVERNMENT CONTRIBUTION TO THE FED11 ERAL EMPLOYEES HEALTH BENEFITS PRO12 GRAM.

13 (a) IN GENERAL.—Section 8906 of title 5, United

14 States Code, is amended by striking subsections (a) and

15 (b) and inserting the following:

16 ‘‘(a) For the purpose of this section, ‘base quarter’

17 and ‘price index’ each has the meaning given it by section

18 8340.

19 ‘‘(b)(1)(A) Except as otherwise provided in this sub20 section, the biweekly Government contribution for health

21 benefits for an employee or annuitant enrolled in a health

22 benefits plan under this chapter shall be—

23 ‘‘(i) $1,535, if enrollment is for self alone, and

24 ‘‘(ii) $3,430, if enrollment is for self and family,

25 as adjusted under subparagraph (B).
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1 ‘‘(B) The biweekly Government contribution under

2 this paragraph for contract year 1997, or a subsequent

3 contract year, is the applicable amount under subpara4 graph (A), increased by the percentage (if any) by which—

5 ‘‘(i) the price index for the base quarter of the

6 preceding contract year, exceeds

7 ‘‘(ii) the price index for the base quarter of con8 tract year 1994,

9 rounded to the nearest multiple of $5 (or, if midway be10 tween multiples of $5, to the next higher multiple of $5).

11 For an employee, the adjustment begins on the first day

12 of the employee’s first pay period of the contract year.

13 For an annuitant, the adjustment begins on the first day

14 of the first period of the contract year for which an annu15 ity payment is made.

16 ‘‘(2) The biweekly Government contribution for an

17 employee or annuitant enrolled in a plan under this chap18 ter shall not exceed the subscription charge.

19 ‘‘(3) In the case of an employee occupying a position

20 on a part-time career employment basis (as defined in sec21 tion 3401(2)), the biweekly Government contribution shall

22 be equal to the amount which bears the same ratio to the

23 otherwise applicable amount under this subsection (deter24 mined without regard to this paragraph) as the average

25 number of hours of such employee’s regularly scheduled
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1 workweek bears to the average number of hours in the

2 regularly scheduled workweek of an employee serving in

3 a comparable position on a full-time career basis (as deter4 mined under regulations prescribed by the Office).’’.

5 (b) CONFORMING AMENDMENT.—Subsection (c) of

6 section 613 of the Alaska Railroad Transfer Act of 1982

7 (45 U.S.C. 1212(c)) is repealed.

8 (c) EFFECTIVE DATE.—This section shall take effect

9 at the beginning of contract year 1997.

10 TITLE XII—MEDICARE

11 Subtitle A—Copayment Reform

12 SEC. 12001. IMPOSITION OF 20 PERCENT COINSURANCE ON

13 HOME HEALTH SERVICES.

14 (a) IN GENERAL.—

15 (1) PART A.—Section 1813(a) of the Social Se16 curity Act (42 U.S.C. 1395e(a)) is amended by add17 ing at the end the following new paragraph:

18 ‘‘(5) The amount payable for a home health service

19 furnished to an individual under this part shall be reduced

20 by a copayment amount equal to 20 percent of the average

21 of all the per visit costs for such service furnished under

22 this title determined under section 1861(v)(1)(L) (as de23 termined by the Secretary on a prospective basis for serv24 ices furnished during a calendar year).’’.
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1 (2) PART B.—Section 1833(a)(2) of such Act

2 (42 U.S.C. 1395l(a)(2)), as amended by section

3 147(f)(6)(C) of the Social Security Act Amendments

4 of 1994, is amended—

5 (A) in subparagraph (A)—

6 (i) by striking ‘‘to home health serv7 ices’’ and all that follows through

8 ‘‘1861(kk))),’’, and

9 (ii) by striking the comma after

10 ‘‘opinion)’’;

11 (B) in subparagraph (E), by striking

12 ‘‘and’’ at the end;

13 (C) in subparagraph (F), by striking the

14 semicolon at the end and inserting ‘‘; and’’; and

15 (D) by adding at the end the following new

16 subparagraph:

17 ‘‘(G) with respect to any home health serv18 ice other than a covered osteoporosis drug (as

19 defined in section 1861(kk))—

20 ‘‘(i) the lesser of —

21 ‘‘(I) the reasonable cost of such

22 service, as determined under section

23 1861(v), or

24 ‘‘(II) the customary charges with

25 respect to such service,
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1 less the amount a provider may charge as

2 described in clause (ii) of section

3 1866(a)(2)(A), or

4 ‘‘(ii) if such service is furnished by a

5 public provider of services, or by another

6 provider which demonstrates to the satis7 faction of the Secretary that a significant

8 portion of its patients are low-income (and

9 requests that payment be made under this

10 clause), free of charge or at nominal

11 charges to the public, the amount deter12 mined in accordance with section

13 1814(b)(2),

14 less a copayment amount equal to 20 percent of

15 the average of all per visit costs for such service

16 furnished under this title determined under sec17 tion 1861(v)(1)(L) (as determined by the Sec18 retary on a prospective basis for services fur19 nished during a calendar year);’’.

20 (3) PROVIDER CHARGES.—Section

21 1866(a)(2)(A)(i) of such Act (42 U.S.C.

22 1395cc(a)(2)(A)(i)) is amended—

23 (A) by striking ‘‘deduction or coinsurance’’

24 and inserting ‘‘deduction, coinsurance, or

25 copayment’’; and
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1 (B) by striking ‘‘or (a)(4)’’ and inserting

2 ‘‘(a)(4), or (a)(5)’’.

3 (b) EFFECTIVE DATE.—The amendments made by

4 subsection (a) shall apply to home health services fur5 nished on or after October 1, 1995.

6 SEC. 12002. IMPOSITION OF 20 PERCENT COINSURANCE ON

7 CLINICAL LABORATORY SERVICES.

8 (a) IN GENERAL.—Section 1833(a) of the Social Se9 curity Act (42 U.S.C. 1395l(a)), as amended by section

10 156(a)(2)(B) of the Social Security Act Amendments of

11 1994, is amended—

12 (1) in paragraph (1)(D)—

13 (A) by striking ‘‘(or 100 percent’’ and all

14 that follows through ‘‘basis)’’, and

15 (B) by striking ‘‘100 percent of such nego16 tiated rate’’ and inserting ‘‘80 percent of such

17 negotiated rate’’; and

18 (2) in paragraph (2)(D)—

19 (A) by striking ‘‘(or 100 percent’’ and all

20 that follows through ‘‘section 1866)’’, and

21 (B) by striking ‘‘100 percent of such nego22 tiated rate’’ and inserting ‘‘80 percent of such

23 negotiated rate’’.
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1 (b) EFFECTIVE DATE.—The amendments made by

2 subsection (a) shall apply to tests furnished on or after

3 October 1, 1995.

4 Subtitle B—Part B Premium

5 SEC. 12101. RELATING MEDICARE PART B PREMIUM TO IN6 COME FOR CERTAIN HIGH INCOME INDIVID7 UALS.

8 (a) INCREASE IN PREMIUM.—

9 (1) IN GENERAL.—Section 1839 of the Social

10 Security Act (42 U.S.C. 1395r), as amended by sec11 tion 144 of the Social Security Act Amendments of

12 1994, is amended by adding at the end the follow13 ing:

14 ‘‘(h)(1) Notwithstanding the previous subsections of

15 this section, in the case of an individual whose modified

16 adjusted gross income in a taxable year ending with or

17 within a calendar year (as reported by the individual under

18 section 1893(a)) is equal to or exceeds the sum of the

19 threshold amount described in paragraph (4) and

20 $25,000, the amount of the monthly premium for the cal21 endar year shall be increased by an amount such that the

22 total monthly premium (determined without regard to sub23 section (b)) is equal to 200 percent of the monthly actuar24 ial rate for enrollees age 65 and over as determined under

25 subsection (a)(1) for that calendar year. The preceding
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1 sentence shall not apply to any individual whose threshold

2 amount is zero.

3 ‘‘(2) Notwithstanding the previous subsections of this

4 section, in the case of an individual not described in para5 graph (1) whose modified adjusted gross income in a tax6 able year ending with or within a calendar year (as re7 ported by the individual under section 1893(a)) exceeds

8 the threshold amount described in paragraph (4), the

9 amount of the monthly premium for the calendar year

10 shall be increased by an amount which bears the same

11 ratio to the amount of the increase determined under

12 paragraph (1) as such excess bears to $25,000. The pre13 ceding sentence shall not apply to any individual whose

14 threshold amount is zero.

15 ‘‘(3) Using information provided by the Secretary of

16 the Treasury under section 6103(l)(14) of the Internal

17 Revenue Code of 1986, the Secretary shall determine the

18 actual modified adjusted gross income of individuals en19 rolled in this part during a taxable year and adjust the

20 monthly premium applicable to an individual during a cal21 endar year to take into account any overpayments or un22 derpayments in the premium during the previous calendar

23 year resulting from the application of this subsection.

24 ‘‘(4) In this subsection and section 1813(c), the term

25 ‘threshold amount’ means—
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1 ‘‘(A) except as otherwise provided in this para2 graph, $70,000,

3 ‘‘(B) $90,000 in the case of an individual who

4 files a joint return under section 6013 of the Inter5 nal Revenue Code of 1986, and

6 ‘‘(C) zero in the case of an individual who—

7 ‘‘(i) is married at the close of the taxable

8 year (as determined under section 7703 of the

9 Internal Revenue Code of 1986) but does not

10 file a joint return for such year, and

11 ‘‘(ii) does not live apart from the individ12 ual’s spouse at all times during the taxable

13 year.’’.

14 (2) CONFORMING AMENDMENT.—Section

15 1839(f) of such Act (42 U.S.C. 1395r(f)) is amend16 ed by striking ‘‘if an individual’’ and inserting the

17 following: ‘‘if an individual (other than an individual

18 subject to an increase in the monthly premium

19 under this section pursuant to subsection (h))’’.

20 (3) EFFECTIVE DATE.—The amendments made

21 by paragraphs (1) and (2) shall apply to the month22 ly premium under section 1839 of the Social Secu23 rity Act for months beginning after February 1996

24 in taxable years beginning after December 31, 1995.
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1 (b) REPORTING REQUIREMENT FOR BENE2 FICIARIES.—Title XVIII of the Social Security Act is

3 amended by adding at the end the following:

4 ‘‘REPORT TO SECRETARY ON ESTIMATED MODIFIED

5 ADJUSTED GROSS INCOME

6 ‘‘SEC. 1893. (a) IN GENERAL.—

7 ‘‘(1) INDIVIDUALS COVERED THROUGHOUT

8 YEAR.—Not later than November 1 of each year (be9 ginning with 1996), each individual enrolled under

10 part B shall submit to the Secretary (in such form

11 and manner as the Secretary may require, in con12 sultation with the Secretary of the Treasury) an es13 timate of the individual’s modified adjusted gross in14 come anticipated for the taxable year ending with or

15 within the following calendar year, to be used (sub16 ject to section 1839(h)(3)) to determine whether the

17 individual is to be subject to an increase in the

18 monthly part B premium under section 1839(h) for

19 such following calendar year.

20 ‘‘(2) SPECIAL RULE FOR FIRST YEAR OF COV21 ERAGE.—For the first year in which an individual is

22 enrolled under part B, the individual shall submit to

23 the Secretary (at such time and in such form and

24 manner as the Secretary may require, in consulta25 tion with the Secretary of the Treasury) an estimate

26 of the individual’s modified adjusted gross income
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1 anticipated for the taxable year ending with Decem2 ber 31 of such year, to be used to determine whether

3 the individual is to be subject to an increase in the

4 monthly part B premium under section 1839(h) for

5 such year.

6 ‘‘(b) SPECIAL RULE FOR 1996.—Not later than 60

7 days after the date of the enactment of this section, each

8 individual described in subsection (a) shall submit to the

9 Secretary an estimate of the individual’s modified adjusted

10 gross income for the taxable year ending December 1995,

11 to be used to determine (subject to section 1839(h)(3))

12 whether the individual is to be subject to an increase in

13 the monthly part B premium under section 1839(h) dur14 ing 1996.

15 ‘‘(c) MODIFIED ADJUSTED GROSS INCOME DE16 FINED.—In subsection (a), the term ‘modified adjusted

17 gross income’ means, with respect to an individual for a

18 taxable year, the individual’s adjusted gross income under

19 the Internal Revenue Code of 1986, determined without

20 regard to sections 931 or 933 of such Code.’’.

21 (c) DISCLOSURE OF CERTAIN TAX INFORMATION BY

22 SECRETARY OF TREASURY.—

23 (1) IN GENERAL.—Subsection (l) of section

24 6103 of the Internal Revenue Code of 1986 (relating

25 to confidentiality and disclosure of returns and re-
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1 turn information) is amended by adding at the end

2 thereof the following new paragraph:

3 ‘‘(14) DISCLOSURE OF RETURN INFORMATION

4 TO MEANS-TEST MEDICARE.—

5 ‘‘(A) IN GENERAL.—The Secretary shall,

6 upon written request from the Administrator of

7 the Health Care Financing Administration, dis8 close to the officers and employees of such Ad9 ministration return information necessary to

10 determine the modified adjusted gross income

11 (as defined in section 1893(c) of the Social Se12 curity Act) of any medicare beneficiary (as de13 fined in paragraph (12)(E)), to be used to de14 termine whether the beneficiary is to be subject

15 to an increase in the monthly part B premium

16 under section 1839(g) of such Act.

17 ‘‘(B) RESTRICTION ON USE OF DISCLOSED

18 INFORMATION.—Any officer or employee of the

19 Health Care Financing Administration receiv20 ing return information under subparagraph (A)

21 shall use such information only for purposes of,

22 and to the extent necessary in, establishing the

23 modified adjusted gross income (as so defined)

24 of any medicare beneficiary (as so defined).’’
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1 (2) CONFORMING AMENDMENTS.—Paragraphs

2 (3)(A) and (4) of section 6103(p) of such Code are

3 each amended by striking ‘‘or (13)’’ each place it ap4 pears and inserting ‘‘(13), or (14)’’.

5 (3) EFFECTIVE DATE.—The amendments made

6 by paragraphs (1) and (2) shall apply with respect

7 to information for taxable years beginning after De8 cember 31, 1995.

9 SEC. 12103. SETTING THE PART B PREMIUM AT 25 PERCENT

10 OF PROGRAM EXPENDITURES PERMA11 NENTLY.

12 (a) IN GENERAL.—Section 1839(a)(3) of the Social

13 Security Act (42 U.S.C. 1395r(a)(3)) is amended by strik14 ing ‘‘The monthly premium’’ and all that follows through

15 ‘‘November 1.’’ and inserting the following: ‘‘The monthly

16 premium shall be equal to 50 percent of the monthly actu17 arial rate for enrollees age 65 and over, as determined ac18 cording to paragraph (1), for that succeeding calendar

19 year.’’.

20 (b) CONFORMING AMENDMENTS.—Section 1839 of

21 such Act (42 U.S.C. 1395r) is amended—

22 (1) in subsection (a)(2), by striking ‘‘(b) and

23 (e)’’ and inserting ‘‘(b), (c), (e), and (f)’’;
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1 (2) in the last sentence of subsection (a)(3), by

2 striking ‘‘and the derivation of the dollar amounts

3 specified in this paragraph’’; and

4 (3) in subsection (e)—

5 (A) by striking ‘‘(1)(A) Notwithstanding’’

6 and all that follows through ‘‘(B)’’,

7 (B) by striking paragraph (2), and

8 (C) by redesignating clauses (i) through

9 (v) as paragraphs (1) through (5).

10 Subtitle C—Part A Deductible

11 SEC. 12201. INCREASE IN MEDICARE HOSPITAL INSURANCE

12 DEDUCTIBLE FOR CERTAIN HIGH-INCOME IN13 DIVIDUALS.

14 (a) INCREASE IN DEDUCTIBLE.—

15 (1) IN GENERAL.—Section 1813 of the Social

16 Security Act (42 U.S.C. 1395e) is amended by add17 ing at the end the following new subsection:

18 ‘‘(c)(1)(A) Notwithstanding the previous subsections

19 of this section, in the case of an individual whose modified

20 adjusted gross income in a taxable year ending with or

21 within a calendar year (as reported by the individual under

22 section 1893(a)) exceeds the threshold amount (described

23 in section 1839(h)(4)), the inpatient hospital deductible

24 otherwise applicable with respect to an individual for a
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1 spell of illness that begins during such year shall be in2 creased—

3 ‘‘(i) in the case of an individual whose modified

4 adjusted gross income exceeds such threshold

5 amount by less than $5,000, by 33 percent of such

6 deductible; or

7 ‘‘(ii) in the case of any other such individual, by

8 33 percent of such deductible for each $5,000 by

9 which the individual’s modified adjusted gross in10 come exceeds such threshold amount.

11 ‘‘(B) Notwithstanding subparagraph (A), the total in12 patient hospital deductible applicable to an individual for

13 a spell of illness may not exceed—

14 ‘‘(i) for 1996, $2,000; and

15 ‘‘(ii) for any succeeding year, the amount de16 scribed in this subparagraph for the preceding cal17 endar year, changed and adjusted in the same man18 ner as the inpatient hospital deductible is changed

19 and adjusted under subsection (b)(1).

20 ‘‘(2) Using information provided by the Secretary of

21 the Treasury under 6103(l)(14), the Secretary shall deter22 mine the actual modified adjusted gross income of individ23 uals enrolled in this part during a taxable year and apply

24 the following rules:
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1 ‘‘(A) In the case of an individual subject to an

2 increase in the inpatient hospital deductible under

3 paragraph (1) during a year whose modified ad4 justed gross income did not exceed the threshold

5 amount (described in section 1839(h)(4)) for such

6 year, the Secretary shall refund to the individual the

7 amount of such increase.

8 ‘‘(B) In the case of an individual to which the

9 inpatient hospital deductible applied for inpatient

10 hospital services furnished in a year and whose ac11 tual modified adjusted gross income exceeded the

12 threshold amount (described in section 1839(h)(4))

13 for such year, if such individual was not subject to

14 an increase in such deductible during the year under

15 paragraph (1)—

16 ‘‘(i) the Secretary shall collect the amount

17 by which the deductible would have been in18 creased if the modified adjusted gross income

19 reported by the individual under section

20 1893(a) was equal to the individual’s actual

21 modified adjusted gross income from the hos22 pital that furnished the inpatient hospital serv23 ices (either directly or through reductions in

24 payments to the hospital for subsequently fur25 nished services); and
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1 ‘‘(ii) the individual shall be liable to the

2 hospital for payment of such amount.’’.

3 (2) EFFECTIVE DATE.—The amendment made

4 by paragraph (1) shall apply to inpatient hospital

5 services for which a spell of illness (as defined in

6 section 1861(a) of the Social Security Act) begins

7 after February 1996 in taxable years beginning after

8 December 31, 1995.

9 (b) CONFORMING AMENDMENT TO REPORTING RE10 QUIREMENT FOR BENEFICIARIES.—Section 1893 of such

11 Act, as added by section 12101(b), is amended—

12 (1) in subsection (a), by striking ‘‘part B’’ each

13 place it appears in paragraphs (1) and (2) and in14 serting ‘‘part B or entitled to benefits under part

15 A’’; and

16 (2) by striking ‘‘1839(h)’’ each place it appears

17 in subsections (a) and (b) and inserting the follow18 ing: ‘‘ 1839(h) or an increase in the inpatient hos19 pital deductible under section 1813(c)’’.

20 (c) CONFORMING AMENDMENT TO DISCLOSURE RE21 QUIREMENT FOR SECRETARY OF THE TREASURY.—Sec22 tion 6103(l)(14)(A) of the Internal Revenue Code of 1986,

23 as added by section 12101(c), is amended by striking

24 ‘‘1839(h)’’ and inserting the following: ‘‘ 1839(h) or an
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1 increase in the inpatient hospital deductible under section

2 1813(c)’’.

3 Subtitle D—Medicare Payments to

4 Hospitals

5 SEC. 12301. ELIMINATION OF PAYMENTS TO HOSPITALS

6 FOR ENROLLEES’ BAD DEBTS.

7 (a) IN GENERAL.—Section 1861(v)(1) of the Social

8 Security Act (8 U.S.C. 1395x(v)(1)) is amended by adding

9 at the end the following new subparagraph:

10 ‘‘(T) In determining such reasonable costs for hos11 pitals, bad debts attributable to the deductibles and coin12 surance amounts under this title shall not be treated as

13 allowable costs.’’.

14 (b) EFFECTIVE DATE.—The amendment made by

15 subsection (a) shall apply to hospital cost reporting peri16 ods beginning on or after October 1, 1995.

17 SEC. 12302. REDUCTION IN PAYMENTS FOR INDIRECT

18 COSTS OF MEDICAL EDUCATION.

19 (a) IN GENERAL.—Section 1886(d)(5)(B)(ii) of the

20 Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(ii)) is

21 amended by striking ‘‘1.89’’ and inserting ‘‘.74’’.

22 (b) EFFECTIVE DATE.—The amendment made by

23 subsection (a) shall apply to hospital cost reporting peri24 ods beginning on or after October 1, 1995.
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1 Subtitle E—Selected Presidential

2 Medicare Reforms

3 SEC. 12401. EXPANSION OF CENTERS OF EXCELLENCE.

4 (a) IN GENERAL.—The Secretary of Health and

5 Human Services shall use a competitive process to con6 tract with centers of excellence for cataract surgery, coro7 nary artery by-pass surgery, and such other services as

8 the Secretary determines to be appropriate. Payment

9 under title XVIII of the Social Security Act will be made

10 for services subject to such contracts on the basis of nego11 tiated or all-inclusive rates as follows:

12 (1) The center shall cover services provided in

13 an urban area (as defined in section 1886(d)(2)(D)

14 of the Social Security Act) for years beginning with

15 fiscal year 1995.

16 (2) The amount of payment made by the Sec17 retary to the center under title XVIII of the Social

18 Security Act for services covered under the project

19 shall be less than the aggregate amount of the pay20 ments that the Secretary would have made to the

21 center for such services had the project not been in

22 effect.

23 (3) The Secretary shall make payments to the

24 center on such a basis for the following services fur-
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1 nished to individuals entitled to benefits under such

2 title:

3 (A) Facility, professional, and related serv4 ices relating to cataract surgery.

5 (B) Coronary artery bypass surgery and

6 related services.

7 (C) Such other services as the Secretary

8 and the center may agree to cover under the

9 agreement.

10 (b) REBATE OF PORTION OF SAVINGS.—In the case

11 of any services provided under a demonstration project

12 conducted under subsection (a), the Secretary shall make

13 a payment to each individual to whom such services are

14 furnished (at such time and in such manner as the Sec15 retary may provide) in an amount equal to 10 percent of

16 the amount by which—

17 (1) the amount of payment that would have

18 been made by the Secretary under title XVIII of the

19 Social Security Act to the center for such services if

20 the services had not been provided under the project,

21 exceeds

22 (2) the amount of payment made by the Sec23 retary under such title to the center for such serv24 ices.
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1 SEC. 12402. APPLICATION OF COMPETITIVE ACQUISITION

2 PROCESS FOR PART B ITEMS AND SERVICES.

3 (a) GENERAL RULE.—Part B of title XVIII of the

4 Social Security Act is amended by inserting after section

5 1846 the following:

6 ‘‘COMPETITION ACQUISITION FOR ITEMS AND SERVICES

7 ‘‘SEC. 1847. (a) ESTABLISHMENT OF BIDDING

8 AREAS.—

9 ‘‘(1) IN GENERAL.—The Secretary shall estab10 lish competitive acquisition areas for the purpose of

11 awarding a contract or contracts for the furnishing

12 under this part of the items and services described

13 in subsection (c) on or after January 1, 1995. The

14 Secretary may establish different competitive acqui15 sition areas under this subsection for different class16 es of items and services under this part.

17 ‘‘(2) CRITERIA FOR ESTABLISHMENT.—The

18 competitive acquisition areas established under para19 graph (1) shall—

20 ‘‘(A) initially be, or be within, metropolitan

21 statistical areas; and

22 ‘‘(B) be chosen based on the availability

23 and accessibility of suppliers and the probable

24 savings to be realized by the use of competitive

25 bidding in the furnishing of items and services

26 in the area.
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1 ‘‘(b) AWARDING OF CONTRACTS IN AREAS.—

2 ‘‘(1) IN GENERAL.—The Secretary shall con3 duct a competition among individuals and entities

4 supplying items and services under this part for

5 each competitive acquisition area established under

6 subsection (a) for each class of items and services.

7 ‘‘(2) CONDITIONS FOR AWARDING CONTRACT.—

8 The Secretary may not award a contract to any indi9 vidual or entity under the competition conducted

10 pursuant to paragraph (1) to furnish an item or

11 service under this part unless the Secretary finds

12 that the individual or entity—

13 ‘‘(A) meets quality standards specified by

14 the Secretary for the furnishing of such item or

15 service; and

16 ‘‘(B) offers to furnish a total quantity of

17 such item or service that is sufficient to meet

18 the expected need within the competitive acqui19 sition area.

20 ‘‘(3) CONTENTS OF CONTRACT.—A contract en21 tered into with an individual or entity under the

22 competition conducted pursuant to paragraph (1)

23 shall specify (for all of the items and services within

24 a class)—
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1 ‘‘(A) the quantity of items and services the

2 entity shall provide; and

3 ‘‘(B) such other terms and conditions as

4 the Secretary may require.

5 ‘‘(c) SERVICES DESCRIBED.—The items and services

6 to which the provisions of this section shall apply are as

7 follows:

8 ‘‘(1) Magnetic resonance imaging tests and

9 computerized axial tomography scans, including a

10 physician’s interpretation of the results of such tests

11 and scans.

12 ‘‘(2) Oxygen and oxygen equipment.

13 ‘‘(3) Such other items and services for which

14 the Secretary determines that the use of competitive

15 acquisition under this section will be appropriate and

16 cost-effective.’’.

17 (b) ITEMS AND SERVICES TO BE FURNISHED ONLY

18 THROUGH COMPETITIVE ACQUISITION.—Section 1862(a)

19 of such Act (42 U.S.C. 1395y(a)), as amended by section

20 156(a)(2)(D) of the Social Security Act Amendments of

21 1994, is amended—

22 (1) by striking ‘‘or’’ at the end of paragraph

23 (14);

24 (2) by striking the period at the end of para25 graph (15) and inserting ‘‘; or’’; and
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1 (3) by inserting after paragraph (15) the fol2 lowing new paragraph:

3 ‘‘(16) where such expenses are for an item or

4 service furnished in a competitive acquisition area

5 (as established by the Secretary under section

6 1847(a)) by an individual or entity other than the

7 supplier with whom the Secretary has entered into

8 a contract under section 1847(b) for the furnishing

9 of such item or service in that area, unless the Sec10 retary finds that such expenses were incurred in a

11 case of urgent need.’’.

12 (c) REDUCTION IN PAYMENT AMOUNTS IF COMPETI13 TIVE ACQUISITION FAILS TO ACHIEVE MINIMUM REDUC14 TION IN PAYMENTS.—Notwithstanding any other provi15 sion of title XVIII of the Social Security Act, if the estab16 lishment of competitive acquisition areas under section

17 1847 of such Act (as added by subsection (a)) and the

18 limitation of coverage for items and services under part

19 B of such title to items and services furnished by providers

20 with competitive acquisition contracts under such section

21 does not result in a reduction of at least 10 percent in

22 the projected payment amount that would have applied to

23 the item or service under part B if the item or service

24 had not been furnished through competitive acquisition

25 under such section, the Secretary shall reduce the pay-
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1 ment amount by such percentage as the Secretary deter2 mines necessary to result in such a reduction.

3 (d) EFFECTIVE DATE.—The amendments made by

4 this section shall apply to items and services furnished

5 under part B of title XVIII of the Social Security Act on

6 or after January 1, 1995.

7 SEC. 12403. APPLICATION OF COMPETITIVE ACQUISITION

8 PROCEDURES FOR LABORATORY SERVICES.

9 (a) IN GENERAL.—Section 1847(c) of the Social Se10 curity Act, as added by section 12402, is amended—

11 (1) by redesignating paragraph (4) as para12 graph (5); and

13 (2) by inserting after paragraph (3) the follow14 ing new paragraph:

15 ‘‘(4) Clinical diagnostic laboratory tests.’’.

16 (b) REDUCTION IN FEE SCHEDULE AMOUNTS IF

17 COMPETITIVE ACQUISITION FAILS TO ACHIEVE SAV18 INGS.—Section 1833(h) (42 U.S.C. 1395l(h)) is amended

19 by adding at the end the following new paragraph:

20 ‘‘(7) Notwithstanding any other provision of this sub21 section, if the Secretary applies the authority provided

22 under section 1847 to establish competitive acquisition

23 areas for the furnishing of clinical diagnostic laboratory

24 tests in a year and the application of such authority does

25 not result in a reduction of at least 10 percent in the pro-
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1 jected payment amount that would have applied to such

2 tests under this section if the tests had not been furnished

3 through competitive acquisition under section 1847, the

4 Secretary shall reduce each payment amount otherwise de5 termined under the fee schedules and negotiated rates es6 tablished under this subsection by such percentage as the

7 Secretary determines necessary to result in such a reduc8 tion.’’.

9 SEC. 12404. MEDICARE SECONDARY PAYER CHANGES.

10 (a) EXTENSION OF DATA MATCH.—

11 (1) Section 1862(b)(5)(C) (42 U.S.C.

12 1395y(b)(5)(C)) is amended by striking clause (iii).

13 (2) Section 6103(l)(12) of the Internal Revenue

14 Code of 1986 is amended by striking subparagraph

15 (F).

16 (b) REPEAL OF SUNSET ON APPLICATION TO DIS17 ABLED EMPLOYEES OF EMPLOYERS WITH MORE THAN

18 100 EMPLOYEES.—Section 1862(b)(1)(B)(iii) (42 U.S.C.

19 1395y(b)(1)(B)(iii)), as amended by section 13561(b) of

20 OBRA–1993, is amended—

21 (1) in the heading, by striking ‘‘SUNSET’’ and

22 inserting ‘‘EFFECTIVE DATE’’; and

23 (2) by striking ‘‘, and before October 1, 1998’’.

24 (c) EXTENSION OF PERIOD FOR END STAGE RENAL

25 DISEASE BENEFICIARIES.—Section 1862(b)(1)(C) (42
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1 U.S.C. 1395y(b)(1)(C)), as amended by section 13561(c)

2 of OBRA–1993, is amended in the second sentence by

3 striking ‘‘and on or before October 1, 1998,’’.

4 SEC. 12405. LIMITATIONS ON PAYMENT FOR PHYSICIANS’

5 SERVICES FURNISHED BY HIGH-COST HOS6 PITAL MEDICAL STAFFS.

7 (a) IN GENERAL.—

8 (1) LIMITATIONS DESCRIBED.—Part B of title

9 XVIII of the Social Security Act is amended by add10 ing at the end the following new section:

11 ‘‘LIMITATIONS ON PAYMENT FOR PHYSICIANS’ SERVICES

12 FURNISHED BY HIGH-COST HOSPITAL MEDICAL STAFFS

13 ‘‘SEC. 1849. (a) SERVICES SUBJECT TO REDUC14 TION.—

15 ‘‘(1) DETERMINATION OF HOSPITAL-SPECIFIC

16 PER ADMISSION RELATIVE VALUE.—Not later than

17 October 1 of each year (beginning with 1997), the

18 Secretary shall determine for each hospital—

19 ‘‘(A) the hospital-specific per admission

20 relative value under subsection (b)(2) for the

21 following year; and

22 ‘‘(B) whether such hospital-specific relative

23 value is projected to exceed the allowable aver24 age per admission relative value applicable to

25 the hospital for the following year under sub26 section (b)(1).
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1 ‘‘(2) REDUCTION FOR SERVICES AT HOSPITALS

2 EXCEEDING ALLOWABLE AVERAGE PER ADMISSION

3 RELATIVE VALUE.—If the Secretary determines

4 (under paragraph (1)) that a medical staff’s hos5 pital-specific per admission relative value for a year

6 (beginning with 1998) is projected to exceed the al7 lowable average per admission relative value applica8 ble to the medical staff for the year, the Secretary

9 shall reduce (in accordance with subsection (c)) the

10 amount of payment otherwise determined under this

11 part for each physician’s service furnished during

12 the year to an inpatient of the hospital by an indi13 vidual who is a member of the hospital’s medical

14 staff.

15 ‘‘(3) TIMING OF DETERMINATION; NOTICE TO

16 HOSPITALS AND CARRIERS.—Not later than October

17 1 of each year (beginning with 1997), the Secretary

18 shall notify the medical executive committee of each

19 hospital (as set forth in the Standards of the Joint

20 Commission on the Accreditation of Health Organi21 zations) of the determinations made with respect to

22 the medical staff under paragraph (1).

23 ‘‘(b) DETERMINATION OF ALLOWABLE AVERAGE

24 PER ADMISSION RELATIVE VALUE AND HOSPITAL-SPE25 CIFIC PER ADMISSION RELATIVE VALUES.—
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1 ‘‘(1) ALLOWABLE AVERAGE PER ADMISSION

2 RELATIVE VALUE.—

3 ‘‘(A) URBAN HOSPITALS.—In the case of a

4 hospital located in an urban area, the allowable

5 average per admission relative value established

6 under this subsection for a year is equal to 125

7 percent (or 120 percent for years after 1999) of

8 the median of 1996 hospital-specific per admis9 sion relative values determined under paragraph

10 (2) for all hospital medical staffs.

11 ‘‘(B) RURAL HOSPITALS.—In the case of a

12 hospital located in a rural area, the allowable

13 average per admission relative value established

14 under this subsection for 1998 and each suc15 ceeding year, is equal to 140 percent of the me16 dian of the 1996 hospital-specific per admission

17 relative values determined under paragraph (2)

18 for all hospital medical staffs.

19 ‘‘(2) HOSPITAL-SPECIFIC PER ADMISSION REL20 ATIVE VALUE.—

21 ‘‘(A) IN GENERAL.—The hospital-specific

22 per admission relative value projected for a hos23 pital (other than a teaching hospital) for a cal24 endar year, shall be equal to the average per

25 admission relative value (as determined under
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1 section 1848(c)(2)) for physicians’ services fur2 nished to inpatients of the hospital by the hos3 pital’s medical staff (excluding interns and resi4 dents) during the second year preceding such

5 calendar year, adjusted for variations in case6 mix and disproportionate share status among

7 hospitals (as determined by the Secretary under

8 subparagraph (C)).

9 ‘‘(B) SPECIAL RULE FOR TEACHING HOS10 PITALS.—The hospital-specific relative value

11 projected for a teaching hospital in a calendar

12 year shall be equal to the sum of—

13 ‘‘(i) the average per admission relative

14 value (as determined under section

15 1848(c)(2)) for physicians’ services fur16 nished to inpatients of the hospital by the

17 hospital’s medical staff (excluding interns

18 and residents) during the second year pre19 ceding such calendar year; and

20 ‘‘(ii) the equivalent per admission rel21 ative value (as determined under section

22 1848(c)(2)) for physicians’ services fur23 nished to inpatients of the hospital by in24 terns and residents of the hospital during

25 the second year preceding such calendar
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1 year, adjusted for variations in case-mix,

2 disproportionate share status, and teaching

3 status among hospitals (as determined by

4 the Secretary under subparagraph (C)).

5 The Secretary shall determine such equiva6 lent relative value unit per admission for

7 interns and residents based on the best

8 available data for teaching hospitals and

9 may make such adjustment in the aggre10 gate.

11 ‘‘(C) ADJUSTMENT FOR TEACHING AND

12 DISPROPORTIONATE SHARE HOSPITALS.—The

13 Secretary shall adjust the allowable per admis14 sion relative values otherwise determined under

15 this paragraph to take into account the needs

16 of teaching hospitals and hospitals receiving ad17 ditional payments under subparagraphs (F) and

18 (G) of section 1886(d)(5). The adjustment for

19 teaching status or disproportionate share shall

20 not be less than zero.

21 ‘‘(c) AMOUNT OF REDUCTION.—The amount of pay22 ment otherwise made under this part for a physician’s

23 service that is subject to a reduction under subsection (a)

24 during a year shall be reduced 15 percent, in the case of

25 a service furnished by a member of the medical staff of
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1 the hospital for which the Secretary determines under sub2 section (a)(1) that the hospital medical staff’s projected

3 relative value per admission exceeds the allowable average

4 per admission relative value.

5 ‘‘(d) RECONCILIATION OF REDUCTIONS BASED ON

6 HOSPITAL-SPECIFIC RELATIVE VALUE PER ADMISSION

7 WITH ACTUAL RELATIVE VALUES.—

8 ‘‘(1) DETERMINATION OF ACTUAL AVERAGE

9 PER ADMISSION RELATIVE VALUE.—Not later than

10 October 1 of each year (beginning with 1999), the

11 Secretary shall determine the actual average per ad12 mission relative value (as determined pursuant to

13 section 1848(c)(2)) for the physicians’ services fur14 nished by members of a hospital’s medical staff to

15 inpatients of the hospital during the previous year,

16 on the basis of claims for payment for such services

17 that are submitted to the Secretary not later than

18 90 days after the last day of such previous year. The

19 actual average per admission shall be adjusted by

20 the appropriate case-mix, disproportionate share fac21 tor, and teaching factor for the hospital medical

22 staff (as determined by the Secretary under sub23 section (b)(2)(C)). Notwithstanding any other provi24 sion of this title, no payment may be made under

25 this part for any physician’s service furnished by a
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1 member of a hospital’s medical staff to an inpatient

2 of the hospital during a year unless the hospital sub3 mits a claim to the Secretary for payment for such

4 service not later than 90 days after the last day of

5 the year.

6 ‘‘(2) RECONCILIATION WITH REDUCTIONS

7 TAKEN.—In the case of a hospital for which the pay8 ment amounts for physicians’ services furnished by

9 members of the hospital’s medical staff to inpatients

10 of the hospital were reduced under this section for

11 a year—

12 ‘‘(A) if the actual average per admission

13 relative value for such hospital’s medical staff

14 during the year (as determined by the Secretary

15 under paragraph (1)) did not exceed the allow16 able average per admission relative value appli17 cable to the hospital’s medical staff under sub18 section (b)(1) for the year, the Secretary shall

19 reimburse the fiduciary agent for the medical

20 staff by the amount by which payments for

21 such services were reduced for the year under

22 subsection (c), including interest at an appro23 priate rate determined by the Secretary;

24 ‘‘(B) if the actual average per admission

25 relative value for such hospital’s medical staff
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1 during the year is less than 15 percentage

2 points above the allowable average per admis3 sion relative value applicable to the hospital’s

4 medical staff under subsection (b)(1) for the

5 year, the Secretary shall reimburse the fidu6 ciary agent for the medical staff, as a percent

7 of the total allowed charges for physicians’ serv8 ices performed in such hospital (prior to the

9 withhold), the difference between 15 percentage

10 points and the actual number of percentage

11 points that the staff exceeds the limit allowable

12 average per admission relative value, including

13 interest at an appropriate rate determined by

14 the Secretary; and

15 ‘‘(C) if the actual average per admission

16 relative value for such hospital’s medical staff

17 during the year exceeded the allowable average

18 per admission relative value applicable to the

19 hospital’s medical staff by 15 percentage points

20 or more, none of the withhold is paid to the fi21 duciary agent for the medical staff.

22 ‘‘(3) MEDICAL EXECUTIVE COMMITTEE OF A

23 HOSPITAL.—Each medical executive committee of a

24 hospital whose medical staff is projected to exceed

25 the allowable relative value per admission for a year,
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1 shall have one year from the date of notification that

2 such medical staff is projected to exceed the allow3 able relative value per admission to designate a fidu4 ciary agent for the medical staff to receive and dis5 burse any appropriate withhold amount made by the

6 carrier.

7 ‘‘(4) ALTERNATIVE REIMBURSEMENT TO MEM8 BERS OF STAFF.—At the request of a fiduciary

9 agent for the medical staff, if the fiduciary agent for

10 the medical staff is owed the reimbursement de11 scribed in paragraph (2)(B) for excess reductions in

12 payments during a year, the Secretary shall make

13 such reimbursement to the members of the hospital’s

14 medical staff, on a pro-rata basis according to the

15 proportion of physicians’ services furnished to inpa16 tients of the hospital during the year that were fur17 nished by each member of the medical staff.

18 ‘‘(e) DEFINITIONS.—In this section, the following

19 definitions apply:

20 ‘‘(1) MEDICAL STAFF.—An individual furnish21 ing a physician’s service is considered to be on the

22 medical staff of a hospital—

23 ‘‘(A) if (in accordance with requirements

24 for hospitals established by the Joint Commis-
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1 sion on Accreditation of Health Organiza2 tions)—

3 ‘‘(i) the individual is subject to by4 laws, rules, and regulations established by

5 the hospital to provide a framework for the

6 self-governance of medical staff activities;

7 ‘‘(ii) subject to such bylaws, rules, and

8 regulations, the individual has clinical

9 privileges granted by the hospital’s govern10 ing body; and

11 ‘‘(iii) under such clinical privileges,

12 the individual may provide physicians’

13 services independently within the scope of

14 the individual’s clinical privileges, or

15 ‘‘(B) if such physician provides at least one

16 service to a medicare beneficiary in such hos17 pital.

18 ‘‘(2) RURAL AREA; URBAN AREA.—The terms

19 ‘rural area’ and ‘urban area’ have the meaning given

20 such terms under section 1886(d)(2)(D).

21 ‘‘(3) TEACHING HOSPITAL.—The term ‘teaching

22 hospital’ means a hospital which has a teaching pro23 gram approved as specified in section 1861(b)(6).’’.

24 (2) CONFORMING AMENDMENTS.—(A) Section

25 1833(a)(1)(N) of such Act (42 U.S.C.
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1 1395l(a)(1)(N)) is amended by inserting ‘‘(subject to

2 reduction under section 1849)’’ after ‘‘1848(a)(1)’’.

3 (B) Section 1848(a)(1)(B) of such Act (42

4 U.S.C. 1395w@4(a)(1)(B)) is amended by striking

5 ‘‘this subsection,’’ and inserting ‘‘this subsection and

6 section 1849,’’.

7 (b) REQUIRING PHYSICIANS TO IDENTIFY HOSPITAL

8 AT WHICH SERVICE FURNISHED.—Section

9 1848(g)(4)(A)(i) of such Act (42 U.S.C.

10 1395w@4(g)(4)(A)(i)) is amended by striking ‘‘bene11 ficiary,’’ and inserting ‘‘beneficiary (and, in the case of

12 a service furnished to an inpatient of a hospital, report

13 the hospital identification number on such claim form),’’.

14 (c) EFFECTIVE DATE.—The amendments made by

15 this section shall apply to services furnished on or after

16 January 1, 1998.

17 SEC. 12406. REDUCTION IN UPDATE FOR INPATIENT HOS18 PITAL SERVICES.

19 Section 1886(b)(3)(B)(i) of the Social Security Act

20 (42 U.S.C. 1395ww(b)(3)(B)(i)) is amended—

21 (1) in subclause (XII)—

22 (A) by striking ‘‘fiscal year 1997’’ and in23 serting ‘‘for each of the fiscal years 1997

24 through 2000’’, and
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1 (B) by striking ‘‘0.5 percentage point’’ and

2 inserting ‘‘2.0 percentage points’’; and

3 (2) in subclause (XIII), by striking ‘‘fiscal year

4 1998’’ and inserting ‘‘fiscal year 2003’’.

5 SEC. 12407. ESTABLISHMENT OF CUMULATIVE EXPENDI6 TURE GOALS FOR PHYSICIAN SERVICES.

7 (a) USE OF CUMULATIVE PERFORMANCE STAND8 ARD.—Section 1848(f)(2) of the Social Security Act (42

9 U.S.C. 1395w@4(f)(2)) is amended—

10 (1) in subparagraph (A)—

11 (A) in the heading, by striking ‘‘IN GEN12 ERAL’’ and inserting ‘‘FISCAL YEARS 1991

13 THROUGH 1994.—’’,

14 (B) in the matter preceding clause (i), by

15 striking ‘‘a fiscal year (beginning with fiscal

16 year 1991)’’ and inserting ‘‘fiscal years 1991,

17 1992, 1993, and 1994’’, and

18 (C) in the matter following clause (iv), by

19 striking ‘‘subparagraph (B)’’ and inserting

20 ‘‘subparagraph (C)’’;

21 (2) in subparagraph (B), by striking ‘‘subpara22 graph (A)’’ and inserting ‘‘subparagraphs (A) and

23 (B)’’;

24 (3) by redesignating subparagraphs (B) and

25 (C) as subparagraphs (C) and (D); and
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1 (4) by inserting after subparagraph (A) the fol2 lowing new subparagraph:

3 ‘‘(B) FISCAL YEARS BEGINNING WITH FIS4 CAL YEAR 1995.—Unless Congress otherwise

5 provides, the performance standard rate of in6 crease, for all physicians’ services and for each

7 category of physicians’ services, for a fiscal year

8 beginning with fiscal year 1995 shall be equal

9 to the performance standard rate of increase

10 determined under this paragraph for the pre11 vious fiscal year, increased by the product of—

12 ‘‘(i) 1 plus the Secretary’s estimate of

13 the weighted average percentage increase

14 (divided by 100) in the fees for all physi15 cians’ services or for the category of physi16 cians’ services, respectively, under this part

17 for portions of calendar years included in

18 the fiscal year involved,

19 ‘‘(ii) 1 plus the Secretary’s estimate of

20 the percentage increase or decrease (di21 vided by 100) in the average number of in22 dividuals enrolled under this part (other

23 than HMO enrollees) from the previous fis24 cal year to the fiscal year involved,
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1 ‘‘(iii) 1 plus the Secretary’s estimate

2 of the average annual percentage growth

3 (divided by 100) in volume and intensity of

4 all physicians’ services or of the category

5 of physicians’ services, respectively, under

6 this part for the 5-fiscal-year period ending

7 with the preceding fiscal year (based upon

8 information contained in the most recent

9 annual report made pursuant to section

10 1841(b)(2)), and

11 ‘‘(iv) 1 plus the Secretary’s estimate

12 of the percentage increase or decrease (di13 vided by 100) in expenditures for all physi14 cians’ services or of the category of physi15 cians’ services, respectively, in the fiscal

16 year (compared with the previous fiscal

17 year) which are estimated to result from

18 changes in law or regulations affecting the

19 percentage increase described in clause (i)

20 and which is not taken into account in the

21 percentage increase described in clause (i),

22 minus 1, multiplied by 100, and reduced by the

23 performance standard factor (specified in sub24 paragraph (C)).’’.

25 (b) TREATMENT OF DEFAULT UPDATE.—
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1 (1) IN GENERAL.—Section 1848(d)(3)(B) (42

2 U.S.C. 1395w@4(d)(3)(B)) is amended—

3 (A) in clause (i)—

4 (i) in the heading, by striking ‘‘IN

5 GENERAL’’ and inserting ‘‘1992 THROUGH

6 1996’’, and

7 (ii) by striking ‘‘for a year’’ and in8 serting ‘‘for 1992, 1993, 1994, 1995, and

9 1996’’; and

10 (B) by adding after clause (ii) the follow11 ing new clause:

12 ‘‘(iii) YEARS BEGINNING WITH 1997.—

13 ‘‘(I) IN GENERAL.—The update

14 for a category of physicians’ services

15 for a year beginning with 1997 pro16 vided under subparagraph (A) shall be

17 increased or decreased by the same

18 percentage by which the cumulative

19 percentage increase in actual expendi20 tures for such category of physicians’

21 services for such year was less or

22 greater, respectively, than the per23 formance standard rate of increase

24 (established under subsection (f)) for
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1 such category of services for such

2 year.

3 ‘‘(II) CUMULATIVE PERCENTAGE

4 INCREASE DEFINED.—In subclause

5 (I), the ‘cumulative percentage in6 crease in actual expenditures’ for a

7 year shall be equal to the product of

8 the adjusted increases for each year

9 beginning with 1995 up to and includ10 ing the year involved, minus 1 and

11 multiplied by 100. In the previous

12 sentence, the ‘adjusted increase’ for a

13 year is equal to 1 plus the percentage

14 increase in actual expenditures for the

15 year.’’.

16 (2) CONFORMING AMENDMENT.—Section

17 1848(d)(3)(A)(i) (42 U.S.C. 1395w@4(d)(3)(A)(i))

18 is amended by striking ‘‘subparagraph (B)’’ and in19 serting ‘‘subparagraphs (B) and (C)’’.

20 SEC. 12408. EXTENSION OF FREEZE ON UPDATES TO ROU21 TINE SERVICE COSTS OF SKILLED NURSING

22 FACILITIES.

23 (a) PAYMENTS BASED ON COST LIMITS.—Section

24 1888(a) of the Social Security Act (42 U.S.C. 1395yy(a))

25 is amended by striking ‘‘112 percent’’ each place it ap-
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1 pears and inserting ‘‘100 percent (adjusted by such

2 amount as the Secretary determines to be necessary to

3 preserve the savings resulting from the enactment of sec4 tion 13503(a)(1) of the Omnibus Budget Reconciliation

5 Act of 1993)’’.

6 (b) PAYMENTS DETERMINED ON PROSPECTIVE

7 BASIS.—Section 1888(d)(2)(B) of such Act (42 U.S.C.

8 1395yy(d)(2)(B)) is amended by striking ‘‘105 percent’’

9 and inserting ‘‘100 percent (adjusted by such amount as

10 the Secretary determines to be necessary to preserve the

11 savings resulting from the enactment of section 13503(b)

12 of the Omnibus Budget Reconciliation Act of 1993)’’.

13 (c) EFFECTIVE DATE.—The amendments made by

14 subsections (a) and(b) shall apply to cost reporting periods

15 beginning on or after October 1, 1995.

16 SEC. 12409. REDUCTION IN ROUTINE COST LIMITS FOR

17 HOME HEALTH SERVICES.

18 (a) REDUCTION IN UPDATE TO MAINTAIN FREEZE

19 IN 1996.—Section 1861(v)(1)(L)(i) of the Social Security

20 Act (42 U.S.C. 1395x(v)(1)(L)(i)) is amended—

21 (1) in subclause (II), by striking ‘‘or’’ at the

22 end;

23 (2) in subclause (III), by striking ‘‘112 per24 cent,’’ and inserting ‘‘and before July 1, 1996, 112

25 percent, or’’; and
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1 (3) by inserting after subclause (III) the follow2 ing new subclause:

3 ‘‘(IV) July 1, 1996, 100 percent (adjusted by

4 such amount as the Secretary determines to be nec5 essary to preserve the savings resulting from the en6 actment of section 13564(a)(1) of the Omnibus

7 Budget Reconciliation Act of 1993),’’.

8 (b) BASING LIMITS IN SUBSEQUENT YEARS ON ME9 DIAN OF COSTS.—

10 (1) IN GENERAL.—Section 1861(v)(1)(L)(i) of

11 such Act (U.S.C. 1395x(v)(1)(L)(i)), as amended by

12 subsection (a), is amended in the matter following

13 subclause (IV) by striking ‘‘the mean’’ and inserting

14 ‘‘the median’’.

15 (2) EFFECTIVE DATE.—The amendment made

16 by paragraph (1) shall apply to cost reporting peri17 ods beginning on or after July 1, 1997.

18 SEC. 12410. ELIMINATION OF FORMULA-DRIVEN OVERPAY19 MENTS FOR CERTAIN OUTPATIENT HOSPITAL

20 SERVICES.

21 (a) AMBULATORY SURGICAL CENTER PROCE22 DURES.—Section 1833(i)(3)(B)(i)(II) of the Social Secu23 rity Act (42 U.S.C. 1395l(i)(3)(B)(i)(II)) is amended—

24 (1) by striking ‘‘of 80 percent’’; and
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1 (2) by striking the period at the end and insert2 ing the following: ‘‘, less the amount a provider may

3 charge as described in clause (ii) of section

4 1866(a)(2)(A).’’.

5 (b) RADIOLOGY SERVICES AND DIAGNOSTIC PROCE6 DURES.—Section 1833(n)(1)(B)(i)(II) of such Act (42

7 U.S.C. 1395l(n)(1)(B)(i)(II)) is amended—

8 (1) by striking ‘‘of 80 percent’’; and

9 (2) by striking the period at the end and insert10 ing the following: ‘‘, less the amount a provider may

11 charge as described in clause (ii) of section

12 1866(a)(2)(A).’’.

13 (c) EFFECTIVE DATE.—The amendments made by

14 this section shall apply to services furnished during por15 tions of cost reporting periods occurring on or after July

16 1, 1994.

17 TITLE XIII—INCOME SECURITY

18 Subtitle A—Administrative Reform

19 SEC. 13001. ELIMINATION OF DEPARTMENT OF HOUSING

20 AND URBAN DEVELOPMENT.

21 (a) ELIMINATION OF DEPARTMENT.—

22 (1) IN GENERAL.—The Department of Housing

23 and Urban Development Act (42 U.S.C. 3531 et

24 seq.) is hereby repealed.
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1 (2) EFFECTIVE DATE.—Paragraph (1) shall

2 take effect on January 1, 1998.

3 (b) TERMINATION OF GNMA.—Section 302(a)(2)(A)

4 of the National Housing Act (12 U.S.C. 1717(a)(2)(A))

5 is amended by adding at the end the following new sen6 tences: ‘‘Upon January 1, 1988 (or such earlier date as

7 provided in the plan of the Secretary of Housing and

8 Urban Development under section 13001(b) of the Re9 structuring a Limited Government Act), the body cor10 porate described in this subparagraph shall cease to exist.

11 Upon such date, any authority of the Department of

12 Housing and Urban Development under this Act or any

13 other Act to carry out duties and functions of the Associa14 tion shall terminate, except to the extent provided in such

15 plan as necessary to meet any outstanding obligations of

16 the Association.’’.

17 (c) DUTIES OF THE SECRETARY.—

18 (1) IN GENERAL.—Notwithstanding any other

19 provision of this Act or any other provision of law,

20 prior to January 1, 1998, the Secretary of Housing

21 and Urban Development (hereafter in this section

22 referred to as the ‘‘Secretary’’) shall take such ac23 tions as may be necessary to—
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1 (A) consolidate the programs administered

2 by the Department of Housing and Urban De3 velopment into a block grant program;

4 (B) convert all funding for public and as5 sisted housing under the United States Housing

6 Act of 1937 to tenant-based rental assistance;

7 (C) convert the Federal Housing Adminis8 tration into a government-controlled corpora9 tion, which would provide mortgage insurance

10 only to low- and moderate-income persons

11 under risk-sharing agreements with private

12 mortgage insurers;

13 (D) transfer, if the Secretary determines

14 appropriate and feasible, the functions of the

15 Government National Mortgage Association to

16 the Federal National Mortgage Association or

17 the Federal Home Loan Mortgage Corporation,

18 fulfill any outstanding obligations of the Gov19 ernment National Mortgage Association, and

20 windup the business of such Association; and

21 (E) otherwise provide for the complete

22 elimination of the Department of Housing and

23 Urban Development pursuant to subsections (a)

24 and (b).

25 (2) SUBMISSIONS TO CONGRESS.—
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1 (A) STRATEGIC PLAN.—Not later than 180

2 days after the date of enactment of this Act,

3 the Secretary shall submit to the Congress a

4 plan to carry out paragraph (1), which shall in5 clude any recommendations for—

6 (i) legislation necessary to carry out

7 paragraph (1);

8 (ii) transfers of functions and activi9 ties, including all existing obligations to

10 other existing or successor Federal or

11 State agencies.

12 (B) PRIVATIZATION OF FHA.—Not later

13 than 180 days after the date of enactment of

14 this Act, the Secretary shall submit to the Con15 gress a report which shall include—

16 (i) recommendations and a strategic

17 plan for the complete privatization of the

18 Federal Housing Administration; and

19 (ii) a description of the projected cost

20 savings to the Federal Government that

21 would be achieved through the complete

22 privatization of the Federal Housing Ad23 ministration.

24 (d) CONGRESSIONAL BUDGET OFFICE REC25 OMMENDATIONS.—Not later than 180 days after the date
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1 of enactment of this Act, the Director of the Congressional

2 Budget Office shall submit to the Committee on Banking

3 and Financial Services of the House of Representatives

4 and the Committee on Banking, Housing, and Urban Af5 fairs of the Senate a list of recommendations for minimiz6 ing the cost of Federal housing and community develop7 ment programs through the elimination of the Department

8 of Housing and Urban Development.

9 (e) GAO REPORT.—Not later than 180 days after the

10 date of enactment of this Act, the Comptroller General

11 of the United States shall submit to the Committee on

12 Banking and Financial Services of the House of Rep13 resentatives and the Committee on Banking, Housing, and

14 Urban Affairs of the Senate a report which shall include

15 recommendations for the most efficient means of achiev16 ing—

17 (1) the complete elimination of the Department

18 of Housing and Urban Development; and

19 (2) the transfer of the functions of the Depart20 ment of Housing and Urban Development to other

21 existing or successor Federal or State agencies.

22 (f) TRANSFER OF FUNCTIONS AND SAVINGS PROVI23 SIONS.—
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1 (1) DEFINITIONS.—For purposes of this sub2 section, unless otherwise provided or indicated by

3 the context—

4 (A) the term ‘‘Federal agency’’ has the

5 meaning given to the term ‘‘agency’’ by section

6 551(1) of title 5, United States Code;

7 (B) the term ‘‘function’’ means any duty,

8 obligation, power, authority, responsibility,

9 right, privilege, activity, or program; and

10 (C) the term ‘‘office’’ includes any office,

11 administration, agency, institute, unit, organi12 zational entity, or component thereof.

13 (2) TRANSFER OF FUNCTIONS.—There are

14 transferred to the Department of Justice all func15 tions which the Secretary of Housing and Urban De16 velopment exercised before the date of the enactment

17 of this Act (including all related functions of any of18 ficer or employee of the Department of Housing and

19 Urban Development) relating to the Fair Housing

20 Act or the rights granted under the Fair Housing

21 Act.

22 (3) DETERMINATIONS OF CERTAIN FUNCTIONS

23 BY THE OFFICE OF MANAGEMENT AND BUDGET.—

24 If necessary, the Office of Management and Budget
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1 shall make any determination of the functions that

2 are transferred under paragraph (2).

3 (4) PERSONNEL PROVISIONS.—

4 (A) APPOINTMENTS.—The attorney gen5 eral may appoint and fix the compensation of

6 such officers and employees, including inves7 tigators, attorneys, and administrative law

8 judges, as may be necessary to carry out the re9 spective functions transferred under this sub10 section. Except as otherwise provided by law,

11 such officers and employees shall be appointed

12 in accordance with the civil service laws and

13 their compensation fixed in accordance with

14 title 5, United States Code.

15 (B) EXPERTS AND CONSULTANTS.—The

16 Attorney General may obtain the services of ex17 perts and consultants in accordance with sec18 tion 3109 of title 5, United States Code, and

19 compensate such experts and consultants for

20 each day (including travel time) at rates not in

21 excess of the rate of pay for level IV of the Ex22 ecutive Schedule under section 5315 of such

23 title. The Attorney General may pay experts

24 and consultants who are serving away from

25 their homes or regular place of business travel
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1 expenses and per diem in lieu of subsistence at

2 rates authorized by sections 5702 and 5703 of

3 such title for persons in Government service

4 employed intermittently.

5 (5) DELEGATION AND ASSIGNMENT.—Except

6 where otherwise expressly prohibited by law or oth7 erwise provided by this subsection, the Attorney

8 General may delegate any of the functions trans9 ferred to the Attorney General by this title and any

10 function transferred or granted to such Attorney

11 General after the effective date of this subsection to

12 such officers and employees of the Department of

13 Justice as the Attorney General may designate, and

14 may authorize successive redelegations of such func15 tions as may be necessary or appropriate. No delega16 tion of functions by the Attorney General under this

17 paragraph or under any other provision of this sub18 section shall relieve such Attorney General of re19 sponsibility for the administration of such functions.

20 (6) REORGANIZATION.—The Attorney General

21 is authorized to allocate or reallocate any function

22 transferred under paragraph (2) among the officers

23 of the Department of Justice, and to establish, con24 solidate, alter, or discontinue such organizational en-
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1 tities in the Department of Justice as may be nec2 essary or appropriate.

3 (7) RULES.—The Attorney General is author4 ized to prescribe, in accordance with the provisions

5 of chapters 5 and 6 of title 5, United States Code,

6 such rules and regulations as the Attorney General

7 determines necessary or appropriate to administer

8 and manage the functions of the Department of Jus9 tice.

10 (8) TRANSFER AND ALLOCATIONS OF APPRO11 PRIATIONS AND PERSONNEL.—Except as otherwise

12 provided in this subsection, the personnel employed

13 in connection with, and the assets, liabilities, con14 tracts, property, records, and unexpended balances

15 of appropriations, authorizations, allocations, and

16 other funds employed, used, held, arising from,

17 available to, or to be made available in connection

18 with the functions transferred by this subsection,

19 subject to section 1531 of title 31, United States

20 Code, shall be transferred to the Department of Jus21 tice. Unexpended funds transferred pursuant to this

22 paragraph shall be used only for the purposes for

23 which the funds were originally authorized and ap24 propriated.
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1 (9) INCIDENTAL TRANSFERS.—The Director of

2 the Office of Management and Budget, at such time

3 or times as the Director shall provide, is authorized

4 to make such determinations as may be necessary

5 with regard to the functions transferred by this sub6 section, and to make such additional incidental dis7 positions of personnel, assets, liabilities, grants, con8 tracts, property, records, and unexpended balances

9 of appropriations, authorizations, allocations, and

10 other funds held, used, arising from, available to, or

11 to be made available in connection with such func12 tions, as may be necessary to carry out the provi13 sions of this subsection. The Director of the Office

14 of Management and Budget shall provide for the ter15 mination of the affairs of all entities terminated by

16 this subsection and for such further measures and

17 dispositions as may be necessary to effectuate the

18 purposes of this subsection.

19 (10) EFFECT ON PERSONNEL.—

20 (A) IN GENERAL.—Except as otherwise

21 provided by this subsection, the transfer pursu22 ant to this subsection of full-time personnel (ex23 cept special Government employees) and part24 time personnel holding permanent positions

25 shall not cause any such employee to be sepa-
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1 rated or reduced in grade or compensation for

2 one year after the date of transfer of such em3 ployee under this subsection.

4 (B) EXECUTIVE SCHEDULE POSITIONS.—

5 Except as otherwise provided in this subsection,

6 any person who, on the day preceding the effec7 tive date of this subsection, held a position com8 pensated in accordance with the Executive

9 Schedule prescribed in chapter 53 of title 5,

10 United States Code, and who, without a break

11 in service, is appointed in the Department of

12 Justice to a position having duties comparable

13 to the duties performed immediately preceding

14 such appointment shall continue to be com15 pensated in such new position at not less than

16 the rate provided for such previous position, for

17 the duration of the service of such person in

18 such new position.

19 (C) TERMINATION OF CERTAIN POSI20 TIONS.—Positions whose incumbents are ap21 pointed by the President, by and with the ad22 vice and consent of the Senate, the functions of

23 which are transferred by this subsection, shall

24 terminate on the effective date of this sub25 section.
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1 (11) SAVINGS PROVISIONS.—

2 (A) CONTINUING EFFECT OF LEGAL DOCU3 MENTS.—All orders, determinations, rules, reg4 ulations, permits, agreements, grants, contracts,

5 certificates, licenses, registrations, privileges,

6 and other administrative actions—

7 (i) which have been issued, made,

8 granted, or allowed to become effective by

9 the President, any Federal agency or offi10 cial thereof, or by a court of competent ju11 risdiction, in the performance of functions

12 which are transferred under this sub13 section, and

14 (ii) which are in effect at the time this

15 subsection takes effect, or were final before

16 the effective date of this subsection and

17 are to become effective on or after the ef18 fective date of this subsection,

19 shall continue in effect according to their terms

20 until modified, terminated, superseded, set

21 aside, or revoked in accordance with law by the

22 President, the Attorney General or other au23 thorized official, a court of competent jurisdic24 tion, or by operation of law.
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1 (B) PROCEEDINGS NOT AFFECTED.—The

2 provisions of this subsection shall not affect any

3 proceedings, including notices of proposed rule4 making, or any application for any license, per5 mit, certificate, or financial assistance pending

6 before the Department of Housing and Urban

7 Development at the time this subsection takes

8 effect, with respect to functions transferred by

9 this subsection but such proceedings and appli10 cations shall be continued. Orders shall be is11 sued in such proceedings, appeals shall be taken

12 therefrom, and payments shall be made pursu13 ant to such orders, as if this subsection had not

14 been enacted, and orders issued in any such

15 proceedings shall continue in effect until modi16 fied, terminated, superseded, or revoked by a

17 duly authorized official, by a court of competent

18 jurisdiction, or by operation of law. Nothing in

19 this subparagraph shall be deemed to prohibit

20 the discontinuance or modification of any such

21 proceeding under the same terms and condi22 tions and to the same extent that such proceed23 ing could have been discontinued or modified if

24 this subsection had not been enacted.
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1 (C) SUITS NOT AFFECTED.—The provi2 sions of this subsection shall not affect suits

3 commenced before the effective date of this sub4 section, and in all such suits, proceedings shall

5 be had, appeals taken, and judgments rendered

6 in the same manner and with the same effect

7 as if this subsection had not been enacted.

8 (D) NONABATEMENT OF ACTIONS.—No

9 suit, action, or other proceeding commenced by

10 or against the Department of Housing and

11 Urban Development, or by or against any indi12 vidual in the official capacity of such individual

13 as an officer of the Department of Housing and

14 Urban Development, shall abate by reason of

15 the enactment of this subsection.

16 (E) ADMINISTRATIVE ACTIONS RELATING

17 TO PROMULGATION OF REGULATIONS.—Any ad18 ministrative action relating to the preparation

19 or promulgation of a regulation by the Depart20 ment of Housing and Urban Development relat21 ing to a function transferred under this sub22 section may be continued by the Department of

23 Justice with the same effect as if this sub24 section had not been enacted.
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1 (12) SEPARABILITY.—If a provision of this sub2 section or its application to any person or cir3 cumstance is held invalid, neither the remainder of

4 this subsection nor the application of the provision

5 to other persons or circumstances shall be affected.

6 (13) TRANSITION.—The Attorney General is

7 authorized to utilize—

8 (A) the services of such officers, employ9 ees, and other personnel of the Department of

10 Housing and Urban Development with respect

11 to functions transferred to the Department of

12 Justice by this subsection; and

13 (B) funds appropriated to such functions

14 for such period of time as may reasonably be

15 needed to facilitate the orderly implementation

16 of this subsection.

17 (14) REFERENCES.—Reference in any other

18 Federal law, executive order, rule, regulation, or del19 egation of authority, or any document of or relating

20 to—

21 (A) the Secretary of Housing and Urban

22 Development with regard to functions trans23 ferred under paragraph (2), shall be deemed to

24 refer to the Attorney General; and
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1 (B) the Department of Housing and

2 Urban Development with regard to functions

3 transferred under paragraph (2), shall be

4 deemed to refer to the Department of Justice.

5 (15) ADDITIONAL CONFORMING AMEND6 MENTS.—

7 (A) RECOMMENDED LEGISLATION.—After

8 consultation with the appropriate committees of

9 the Congress and the Director of the Office of

10 Management and Budget, the Attorney General

11 shall prepare and submit to the Congress rec12 ommended legislation containing technical and

13 conforming amendments to reflect the changes

14 made by this subsection.

15 (B) SUBMISSION TO THE CONGRESS.—No

16 later than 6 months after the effective date of

17 this subsection, the Attorney General shall sub18 mit the recommended legislation referred to

19 under subparagraph (A).

20 (16) EFFECTIVE DATE.—This subsection shall

21 take effect 180 days after the date of enactment of

22 this Act.
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1 Subtitle B—Housing Program

2 Reforms

3 SEC. 13101. ELIMINATION OF OPERATING SUBSIDIES FOR

4 VACANT PUBLIC HOUSING.

5 (a) IN GENERAL.—Section 9(a)(3)(B) of the United

6 States Housing Act of 1937 (42 U.S.C. 1437g(a)(3)(B))

7 is amended—

8 (1) in clause (iv), by striking ‘‘and’’ at the end;

9 (2) in clause (v), by striking the period at the

10 end and inserting ‘‘; and’’; and

11 (3) by adding at the end the following new

12 clause:

13 ‘‘(vi) no payment may be provided under this

14 section for any dwelling unit that has been vacant

15 for a period of 180 days or more unless such unit

16 is vacant because of comprehensive modernization,

17 major reconstruction, demolition, or disposition ac18 tivities that have been funded or approved.’’.

19 (b) ELIMINATION OF ANNUAL CONTRIBUTION RE20 SERVE.—Section 14(p) of the United States Housing Act

21 of 1937 (42 U.S.C. 1437l(p)) is amended by striking para22 graph (3).

23 (c) RECAPTURE OF ANNUAL CONTRIBUTION RE24 SERVE.—The Secretary of Housing and Urban Develop25 ment shall recapture any amounts reserved from annual
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1 contributions for public housing agencies and deposited in

2 accounts established on behalf of the agencies pursuant

3 to paragraph (3) of section 14(p) of the United States

4 Housing Act of 1937 (as in effect immediately before the

5 date of the enactment of this Act).

6 SEC. 13102. INCREASE OF TENANT CONTRIBUTIONS.

7 (a) UNITED STATES HOUSING ACT OF 1937.—The

8 United States Housing Act of 1937 (42 U.S.C. 1437 et

9 seq.) is amended as follows:

10 (1) GENERAL RULE FOR SECTION 8 AND PUB11 LIC HOUSING.—In section 3(a)(1)(A), by striking

12 ‘‘30 per centum’’ and inserting ‘‘35 percent’’.

13 (2) SECTION 8 VOUCHERS.—In section 8(o)—

14 (A) in paragraph (2), by striking ‘‘30 per

15 centum’’ and inserting ‘‘35 percent’’; and

16 (B) in paragraph (11)(B)(ii), by striking

17 ‘‘30 percent’’ and inserting ‘‘35 percent’’.

18 (3) SECTION 8 ASSISTANCE FOR RENTAL REHA19 BILITATION PROJECTS.—In section 8(u)(2), by strik20 ing ‘‘30 percent’’ and inserting ‘‘35 percent’’.

21 (4) SECTION 8 HOMEOWNERSHIP ASSIST22 ANCE.—In section 8(y)(2)(A), by striking ‘‘30 per23 cent’’ and inserting ‘‘35 percent’’.
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1 (5) DISPLACEMENT ASSISTANCE.—In section

2 16(d)(1), by striking ‘‘30 percent’’ and inserting ‘‘35

3 percent’’.

4 (6) FAMILY SELF-SUFFICIENCY PROGRAM.—In

5 section 23(d), by striking ‘‘30 percent’’ each place it

6 appears and inserting ‘‘35 percent’’.

7 (7) MUTUAL HELP HOMEOWNERSHIP PROGRAM

8 FOR INDIAN HOUSING.—In section

9 202(e)(2)(A)(i)(I), by striking ‘‘30 percent’’ and in10 serting ‘‘35 percent’’.

11 (b) SECTION 8 ASSISTANCE FOR PRESERVATION OF

12 STATE-SPONSORED LOW-INCOME HOUSING.—Section

13 613(b)(2) of the Cranston-Gonzalez National Affordable

14 Housing Act (42 U.S.C. 4125(b)(2)) is amended by strik15 ing ‘‘30 percent’’ and inserting ‘‘35 percent’’.

16 (c) LOW-INCOME HOUSING PRESERVATION PRO17 GRAMS.—

18 (1) LIHPRH ACT OF 1990.—The Low-Income

19 Housing Preservation and Resident Homeownership

20 Act of 1990 is amended—

21 (A) in section 218(a)(1)(A) (12 U.S.C.

22 4108(a)(1)(A)), by striking ‘‘30 percent’’ and

23 inserting ‘‘35 percent’’; and
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1 (B) in section 222(a)(2)(D)(i) (12 U.S.C.

2 4112(a)(2)(D)(i)), by striking ‘‘30 percent’’ and

3 inserting ‘‘35 percent’’.

4 (2) ELIHP ACT OF 1987.—Any reference in the

5 provisions of the Emergency Low Income Housing

6 Preservation Act of 1987 (as in effect before the

7 date of the enactment of the Cranston-Gonzalez Na8 tional Affordable Housing Act) to 30 percent of the

9 adjusted income of a tenant or family shall be con10 sidered to mean 35 percent of such adjusted income,

11 for purposes of the applicability of the provisions of

12 the Emergency Low Income Housing Preservation

13 Act of 1987 pursuant to section 604 of the Cran14 ston-Gonzalez National Affordable Housing Act.

15 SEC. 13103. REDUCTION OF PHA ADMINISTRATIVE FEES

16 FOR SECTION 8 RENTAL ASSISTANCE PRO17 GRAM.

18 (a) MONTHLY FEE.—

19 (1) IN GENERAL.—Section 8(q)(1) of the Unit20 ed States Housing Act of 1937 (42 U.S.C.

21 1437f(q)(1)) is amended—

22 (A) by striking the 2d sentence and insert23 ing the following new sentences: ‘‘In fiscal year

24 1996 the amount of the fee for each month for

25 which a dwelling unit is covered by an assist-
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1 ance contract shall be 7.2375 percent of the

2 fair market rental established under subsection

3 (c)(1) for a 2-bedroom existing rental dwelling

4 unit in the market area of the public housing

5 agency. In fiscal year 1997 and in each fiscal

6 year thereafter, the fee shall be 5.0 percent of

7 such fair market rental.’’; and

8 (B) in the last sentence, by striking ‘‘fee’’

9 and inserting ‘‘amount of the fee established

10 under this paragraph, for certain programs,’’.

11 (2) EFFECTIVE DATE AND APPLICABILITY.—

12 (A) EFFECTIVE DATE.—The amendments

13 under paragraph (1) shall be made on October

14 1, 1995.

15 (B) APPLICABILITY.—The amendments

16 made by this subsection shall apply to any

17 dwelling units covered by an assistance contract

18 under section 8 of the United States Housing

19 Act of 1937 in effect on October 1, 1995, and

20 any units covered by such a contract entered

21 into or renewed on or after such date.

22 (b) START-UP FEE.—

23 (1) IN GENERAL.—Section 8(q)(2)(A)(i) of the

24 United States Housing Act of 1937 (42 U.S.C.
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•HR 1923 IH

1 1437f(q)(2)(A)(i)) is amended by striking ‘‘$275’’

2 and inserting ‘‘$590’’.

3 (2) EFFECTIVE DATE.—The amendment under

4 paragraph (1) shall be made and shall take effect on

5 October 1, 1995.

6 Subtitle C—Supplemental Security

7 Income Reforms

8 SEC. 13201. MORE TIMELY REPORTING OF ADMISSIONS OF

9 SSI RECIPIENTS TO NURSING HOMES; $30

10 LIMIT ON SSI BENEFITS FOR RECIPIENTS IN

11 NURSING HOMES IF MEDICAID PAYS MOST

12 OF THEIR CARE COSTS.

13 Section 1631(e)(1)(C) of the Social Security Act (42

14 U.S.C. 1383(e)(1)(C)), as added by section 6(a) of the So15 cial Security Domestic Employment Reform Act of 1994,

16 is amended by striking ‘‘2 weeks’’ and inserting ‘‘1 day’’.

17 SEC. 13202. REDUCED UNEARNED INCOME EXCLUSION

18 UNDER THE SUPPLEMENTAL SECURITY IN19 COME PROGRAM.

20 Section 1612(b)(3)(A) of the Social Security Act (42

21 U.S.C. 1382a(b)(3)(A)) is amended by striking ‘‘$20’’ and

22 inserting ‘‘$15’’.
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1 SEC. 13203. RECOVERY OF SSI OVERPAYMENTS FROM SO2 CIAL SECURITY BENEFITS.

3 (a) IN GENERAL.—Part A of title XI of the Social

4 Security Act (42 U.S.C. 1301 et seq.) is amended by add5 ing at the end the following new section:

6 ‘‘RECOVERY OF SSI OVERPAYMENTS FROM OASDI

7 BENEFITS

8 ‘‘SEC. 1144. (a) Whenever the Commissioner of So9 cial Security determines that more than the correct

10 amount of supplemental security income benefits has been

11 paid to any person and the Commissioner is unable to

12 make proper adjustment or recovery of the amount so in13 correctly paid as provided in section 1631(b), the Commis14 sioner (notwithstanding section 207) may recover the

15 amount incorrectly paid by reducing monthly insurance

16 benefits otherwise payable under title II to such person

17 or such person’s estate.

18 ‘‘(b) Together with any certification for payment of

19 monthly insurance benefits under title II pursuant to sec20 tion 205(i), the Commissioner shall include a certification

21 of the amount of any reduction in such benefits made pur22 suant to subsection (a). Upon receipt of such certification

23 of the amount of the reduction, the Secretary of the Treas24 ury, as Managing Trustee of the Federal Old-Age and

25 Survivors Insurance Trust Fund or the Federal Disability

26 Insurance Trust Fund, shall transfer an amount equal to
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1 the amount of such reduction as so certified from the ap2 propriate Trust Fund to the general fund of the Treasury.

3 ‘‘(c) For purposes of this section, the term ‘supple4 mental security income benefit’ means a benefit under title

5 XVI, including a supplementary payment of the type de6 scribed in section 1616(a) and a payment pursuant to an

7 administration agreement entered into under section

8 212(b) of Public Law 93–66.’’.

9 (b) CONFORMING AMENDMENT.—Section 1631(b) of

10 such Act (42 U.S.C. 1383(b)) is amended by adding at

11 the end the following new paragraph:

12 ‘‘(6) For provisions relating to the recovery of over13 payments under this title by means of reduction in bene14 fits otherwise payable under title II, see section 1144.’’.

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall take effect on the date of the enactment

17 of this Act and shall apply to overpayments outstanding

18 on or after such date.

19 Subtitle D—Civil Service Reforms

20 SEC. 13301. INCREASE IN RETIREMENT AGE UNDER FERS

21 TO 65.

22 (a) IN GENERAL.—Chapter 84 of title 5, United

23 States Code, is amended by adding at the end the follow24 ing:
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1 ‘‘SUBCHAPTER VIII—SPECIAL RULES FOR CER2 TAIN POST-1993 NEW EMPLOYEES AND

3 MEMBERS

4 ‘‘§ 8481. Applicability

5 ‘‘(a) This subchapter sets forth special rules in con6 formance with which this chapter shall be applied with re7 spect to any employee who first becomes an employee sub8 ject to this chapter, or who is first elected as a Member,

9 after December 31, 1994.

10 ‘‘(b) Nothing in this subchapter shall be considered

11 to apply with respect to any employee or Member not de12 scribed in subsection (a) or to have any effect except for

13 the purpose referred to in such subsection.

14 ‘‘§ 8482. Immediate retirement

15 ‘‘Deem section 8412 to be amended as follows:

16 ‘‘(1) Subsection (c) is amended by striking ‘62’

17 and inserting ‘65’.

18 ‘‘(2) Subsections (a), (b), (f), and (g) are re19 pealed.

20 ‘‘§ 8483. Deferred retirement

21 ‘‘Deem section 8413 to be amended as follows:

22 ‘‘(1) Subsection (a) is amended by striking ‘62’

23 and inserting ‘65’.

24 ‘‘(2) Subsection (b) is repealed.
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1 ‘‘§ 8484. References to age 62

2 ‘‘(a) Deem section 8415 to be amended as follows:

3 ‘‘(1) Subsection (f) is repealed.

4 ‘‘(2) Subsection (g)(2)(B) is amended by strik5 ing ‘is at least 62 years of age and’.

6 ‘‘(b) Deem section 8442 to be amended in subsections

7 (c)(2)(B) and (g)(2)(B) by striking ‘62’ each place it ap8 pears and inserting ‘65’.

9 ‘‘(c) Deem section 8452(b)(1) to be amended by

10 striking ‘sixty-second’ and inserting ‘sixty-fifth’.’’.

11 (b) CHAPTER ANALYSIS.—The analysis for chapter

12 84 of title 5, United States Code, is amended by adding

13 at the end the following:

‘‘SPECIAL RULES FOR CERTAIN POST-1993 NEW EMPLOYEES AND MEMBERS

‘‘8481. Applicability.

‘‘8482. Immediate retirement.

‘‘8483. Deferred retirement.

‘‘8484. References to age 62.’’.

14 SEC. 13302. DEFERRAL UNTIL AGE 62 OF COST-OF-LIVING

15 ADJUSTMENTS FOR MILITARY RETIREES

16 WHO FIRST ENTERED MILITARY SERVICE ON

17 OR AFTER JANUARY 1, 1996.

18 Section 1401a(b)(1) of title 10, United States Code,

19 is amended by adding at the end the following new sen20 tence: ‘‘In the case of a member or former member under

21 age 62 (other than a member retired under chapter 61

22 of this title) who first became a member on or after Janu-
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•HR 1923 IH

1 ary 1, 1996, such increase shall not become payable as

2 part of the retired pay of the member or former member

3 until the month in which the member or former member

4 becomes 62 years of age.’’.

5 SEC. 13303. PROVISION RELATING TO GOVERNMENT CON6 TRIBUTIONS TO THE THRIFT SAVINGS PLAN.

7 Section 8432(c)(2)(B) of title 5, United States Code,

8 is amended by adding at the end the following: ‘‘Clause

9 (ii) shall not apply with respect to any employee or Mem10 ber described in section 8481(a).’’.

11 Subtitle E—Assistance Program

12 Reforms

13 SEC. 13401. LOW-INCOME HOME ENERGY ASSISTANCE.

14 Section 2602(b) of the Low-Income Home Energy

15 Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended

16 by inserting after the first sentence the following new sen17 tence: ‘‘There are authorized to be appropriated to carry

18 out this title $700,000,000 for each of the fiscal years

19 1996 through 2000.’’.

20 SEC. 13402. ADDITIONAL REQUIREMENTS FOR UNEMPLOY21 MENT BENEFITS.

22 (a) GENERAL RULE.—Subsection (a) of section 3304

23 of the Internal Revenue Code of 1986 (relating to approval

24 of State laws) is amended by striking ‘‘and’’ at the end

25 of paragraph (17), by redesignating paragraph (18) as
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•HR 1923 IH

1 paragraph (20), and by inserting after paragraph (17) the

2 following new paragraphs:

3 ‘‘(18) compensation shall not be payable to any

4 individual for such individual’s first 2 weeks of oth5 erwise compensable unemployment during any bene6 fit year; except that this paragraph shall not apply

7 in the case of a benefit year which immediately fol8 lows the ending of a preceding benefit year for the

9 individual;

10 ‘‘(19) compensation shall not be payable to any

11 individual for any benefit year if the taxable income

12 of such individual for such individual’s most recent

13 taxable year ending before the beginning of such

14 benefit year exceeded $120,000; and’’.

15 (b) CONFORMING AMENDMENT.—Paragraph (2) of

16 section 204(a) of the Federal-State Extended Unemploy17 ment Compensation Act of 1970 is amended by striking

18 subparagraph (B) and redesignating subparagraphs (C)

19 and (D) as subparagraphs (B) and (C), respectively.

20 (c) EFFECTIVE DATE.—

21 (1) IN GENERAL.—Except as provided in para22 graph (2), the amendments made by this section

23 shall apply to benefit years beginning after Septem24 ber 30, 1995.
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1 (2) SPECIAL RULE.—In the case of any State

2 the legislature of which has not been in session for

3 at least 30 calendar days (whether or not successive)

4 between the date of the enactment of this Act and

5 September 30, 1995, the amendments made by this

6 section shall apply to benefit years beginning after

7 the day 30 calendar days after the first day on

8 which such legislature is in session on or after Sep9 tember 30, 1995.

10 SEC. 13403. DENIAL OF UNEMPLOYMENT BENEFITS TO IN11 DIVIDUALS WHO VOLUNTARILY LEAVE MILI12 TARY SERVICE.

13 (a) GENERAL RULE.—Paragraph (1) of section

14 8521(a) of title 5, United States Code, is amended to read

15 as follows:

16 ‘‘(1) ‘Federal service’ means active service (not

17 including active duty in a reserve status unless for

18 a continuous period of 45 days or more) in the

19 armed forces or the commissioned corps of the Na20 tional Oceanic and Atmospheric Administration if

21 with respect to that service the individual—

22 ‘‘(A) was discharged or released under

23 honorable conditions,

24 ‘‘(B) did not resign or voluntarily leave the

25 service, and
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1 ‘‘(C) was not discharged or released for

2 cause as defined by the Secretary of Defense;’’.

3 (b) EFFECTIVE DATE.—The amendment made by

4 subsection (a) shall apply in the case of a discharge or

5 release after the date of the enactment of this Act.

6 SEC. 13404. INCREASE IN VARIABLE RATE PREMIUM

7 CHARGED BY THE PENSION BENEFIT GUAR8 ANTY CORPORATION TO SINGLE-EMPLOYER

9 PLANS.

10 (a) IN GENERAL.—Clause (ii) of section

11 4006(a)(3)(E) of the Employee Retirement Income Secu12 rity Act of 1974 (29 U.S.C. 1306(a)(3)(E)(ii)) is amended

13 by striking ‘‘$9.00’’ and inserting ‘‘$18.00’’.

14 (b) EFFECTIVE DATE.—The amendment made by

15 subsection (a) shall apply with respect to plan years begin16 ning on or after January 1, 1997.

17 TITLE XIV—PERSONAL RESPON18 SIBILITY AND FAMILY PRES19 ERVATION

20 SEC. 14001. SHORT TITLE.

21 This title may be cited as the ‘‘Personal Responsibil22 ity Act of 1995’’.

23 SEC. 14002. TABLE OF CONTENTS.

24 The table of contents of this title is as follows:

TITLE XIV—PERSONAL RESPONSIBILITY AND FAMILY

PRESERVATION
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Sec. 14001. Short title.

Sec. 14002. Table of contents.

Subtitle A—Block Grants for Temporary Assistance for Needy Families

Sec. 14100. Sense of the Congress.

Sec. 14101. Block grants to States.

Sec. 14102. Report on data processing.

Sec. 14103. Transfers.

Sec. 14104. Conforming amendments to the Social Security Act.

Sec. 14105. Conforming amendments to other laws.

Sec. 14106. Continued application of current standards under medicaid program.

Sec. 14107. Effective date.

Subtitle B—Child Protection Block Grant Program

Sec. 14201. Establishment of program.

Sec. 14202. Conforming amendments.

Sec. 14203. Continued application of current standards under Medicaid Program.

Sec. 14204. Effective date.

Sec. 14205. Sense of the Congress regarding timely adoption of children.

Subtitle C—Block Grants for Child Care and for Nutrition Assistance

CHAPTER 1—CHILD CARE BLOCK GRANTS

Sec. 14301. Amendments to the Child Care and Development Block Grant Act

of 1990.

Sec. 14302. Repeal of child care assistance authorized by acts other than the

Social Security Act.

CHAPTER 2—FAMILY AND SCHOOL-BASED NUTRITION BLOCK GRANTS

SUBCHAPTER A—FAMILY NUTRITION BLOCK GRANT PROGRAM

Sec. 14321. Amendment to Child Nutrition Act of 1966.

SUBCHAPTER B—SCHOOL-BASED NUTRITION BLOCK GRANT PROGRAM

Sec. 14341. Amendment to National School Lunch Act.

SUBCHAPTER C—MISCELLANEOUS PROVISIONS

Sec. 14361. Repealers.

CHAPTER 3—OTHER REPEALERS AND CONFORMING AMENDMENTS

Sec. 14371. Amendments to laws relating to child protection block grant.

CHAPTER 4—RELATED PROVISIONS

Sec. 14381. Requirement that data relating to the incidence of poverty in the

United States be published at least every 2 years.

Sec. 14382. Data on program participation and outcomes.

CHAPTER 5—GENERAL EFFECTIVE DATE; PRESERVATION OF ACTIONS,

OBLIGATIONS, AND RIGHTS
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Sec. 14391. Effective date.

Sec. 14392. Application of amendments and repealers.

Subtitle D—Restricting Welfare and Public Benefits for Aliens

Sec. 14400. Statements of national policy concerning welfare and immigration.

CHAPTER 1—ELIGIBILITY FOR FEDERAL BENEFITS PROGRAMS

Sec. 14401. Ineligibility of illegal aliens for certain public benefits programs.

Sec. 14402. Ineligibility of nonimmigrants for certain public benefits programs.

Sec. 14403. Limited eligibility of immigrants for 5 specified Federal public benefits programs.

Sec. 14404. Notification.

CHAPTER 2—ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS

PROGRAMS

Sec. 14411. Ineligibility of illegal aliens for State and local public benefits programs.

Sec. 14412. Ineligibility of nonimmigrants for State and local public benefits

programs.

Sec. 14413. State authority to limit eligibility of immigrants for State and local

means-tested public benefits programs.

CHAPTER 3—ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT

Sec. 14421. Attribution of sponsor’s income and resources to family-sponsored

immigrants.

Sec. 14422. Requirements for sponsor’s affidavit of support.

CHAPTER 4—GENERAL PROVISIONS

Sec. 14431. Definitions.

Sec. 14432. Construction.

CHAPTER 5—CONFORMING AMENDMENTS

Sec. 14441. Conforming amendments relating to assisted housing.

Subtitle E—Food Stamp Reform and Commodity Distribution

Sec. 14501. Short title.

CHAPTER 1—COMMODITY DISTRIBUTION PROVISIONS

Sec. 14511. Short title.

Sec. 14512. Availability of commodities.

Sec. 14513. State, local and private supplementation of commodities.

Sec. 14514. State plan.

Sec. 14515. Allocation of commodities to States.

Sec. 14516. Priority system for State distribution of commodities.

Sec. 14517. Initial processing costs.

Sec. 14518. Assurances; anticipated use.

Sec. 14519. Authorization of appropriations.

Sec. 14520. Commodity supplemental food program.

Sec. 14521. Commodities not income.

Sec. 14522. Prohibition against certain State charges.

Sec. 14523. Definitions.
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Sec. 14524. Regulations.

Sec. 14525. Finality of determinations.

Sec. 14526. Sale of commodities prohibited.

Sec. 14527. Settlement and adjustment of claims.

Sec. 14528. Repealers; amendments.

CHAPTER 2—CONSOLIDATING FOOD ASSISTANCE PROGRAMS

Sec. 14541. Food stamp block grant program.

Sec. 14542. Availability of Federal coupon system to States.

Sec. 14543. Definitions.

Sec. 14544. Repealer.

CHAPTER 3—EFFECTIVE DATES AND MISCELLANEOUS PROVISIONS

Sec. 14591. Effective date; application of repealer.

Sec. 14592. Sense of the Congress.

Sec. 14593. Deficit reduction.

Subtitle F—Supplemental Security Income

Sec. 14601. Denial of supplemental security income benefits by reason of disability to drug addicts and alcoholics.

Sec. 14602. Supplemental security income benefits for disabled children.

Sec. 14603. Examination of mental listings used to determine eligibility of children for SSI benefits by reason of disability.

Sec. 14604. Limitation on payments to Puerto Rico, the Virgin Islands, and

Guam under programs of aid to the aged, blind, or disabled.

Sec. 14605. Repeal of maintenance of effort requirements applicable to optional

State programs for supplementation of SSI benefits.

Sec. 14606. Denial of SSI benefits for 10 years to individuals found to have

fraudulently misrepresented residence in order to obtain benefits simultaneously in 2 or more States.

Sec. 14607. Denial of SSI benefits for fugitive felons and probation and parole

violators.

Sec. 14608. Reapplication requirements for adults receiving SSI benefits by

reason of disability.

Sec. 14609. Striking of restrictions regarding determination of ineligibility.

Sec. 14610. Narrowing of SSI eligibility on basis of mental impairments.

Subtitle G—Child Support

Sec. 14700. References.

CHAPTER 1—ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS

Sec. 14701. State obligation to provide child support enforcement services.

Sec. 14702. Distribution of child support collections.

Sec. 14703. Privacy safeguards.

CHAPTER 2—LOCATE AND CASE TRACKING

Sec. 14711. State case registry.

Sec. 14712. Collection and disbursement of support payments.

Sec. 14713. State directory of new hires.

Sec. 14714. Amendments concerning income withholding.

Sec. 14715. Locator information from interstate networks.

Sec. 14716. Expansion of the Federal parent locator service.
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Sec. 14717. Collection and use of social security numbers for use in child support enforcement.

CHAPTER 3—STREAMLINING AND UNIFORMITY OF PROCEDURES

Sec. 14721. Adoption of uniform State laws.

Sec. 14722. Improvements to full faith and credit for child support orders.

Sec. 14723. Administrative enforcement in interstate cases.

Sec. 14724. Use of forms in interstate enforcement.

Sec. 14725. State laws providing expedited procedures.

CHAPTER 4—PATERNITY ESTABLISHMENT

Sec. 14731. State laws concerning paternity establishment.

Sec. 14732. Outreach for voluntary paternity establishment.

Sec. 14733. Cooperation by applicants for and recipients of temporary family

assistance.

CHAPTER 5—PROGRAM ADMINISTRATION AND FUNDING

Sec. 14741. Federal matching payments.

Sec. 14742. Performance-based incentives and penalties.

Sec. 14743. Federal and State reviews and audits.

Sec. 14744. Required reporting procedures.

Sec. 14745. Automated data processing requirements.

Sec. 14746. Technical assistance.

Sec. 14747. Reports and data collection by the Secretary.

CHAPTER 6—ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

Sec. 14751. Simplified process for review and adjustment of child support orders.

Sec. 14752. Furnishing consumer reports for certain purposes relating to child

support.

CHAPTER 7—ENFORCEMENT OF SUPPORT ORDERS

Sec. 14761. Federal income tax refund offset.

Sec. 14762. Authority to collect support from Federal employees.

Sec. 14763. Enforcement of child support obligations of members of the armed

forces.

Sec. 14764. Voiding of fraudulent transfers.

Sec. 14765. Sense of the Congress that States should suspend drivers’, business, and occupational licenses of persons owing past-due child

support.

Sec. 14766. Work requirement for persons owing past-due child support.

Sec. 14767. Definition of support order.

Sec. 14768. Liens.

Sec. 14769. State law authorizing suspension of licenses.

CHAPTER 8—MEDICAL SUPPORT

Sec. 14771. Technical correction to ERISA definition of medical child support

order.

CHAPTER 9—ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NONRESIDENTIAL PARENTS
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Sec. 14781. Grants to States for access and visitation programs.

CHAPTER 10—EFFECT OF ENACTMENT

Sec. 14791. Effective dates.

CHAPTER 11—MISCELLANEOUS PROVISIONS

Sec. 14801. Scoring.

Sec. 14802. Provisions to encourage electronic benefit transfer systems.

1 Subtitle A—Block Grants for Tem2 porary Assistance for Needy

3 Families

4 SEC. 14100. SENSE OF THE CONGRESS.

5 It is the sense of the Congress that—

6 (1) marriage is the foundation of a successful

7 society;

8 (2) marriage is an essential social institution

9 which promotes the interests of children and society

10 at large;

11 (3) the negative consequences of an out-of-wed12 lock birth on the child, the mother, and society are

13 well documented as follows:

14 (A) the illegitimacy rate among black

15 Americans was 26 percent in 1965, but today

16 the rate is 68 percent and climbing;

17 (B) the illegitimacy rate among white

18 Americans has risen tenfold, from 2.29 percent

19 in 1960 to 22 percent today;

20 (C) the total of all out-of-wedlock births

21 between 1970 and 1991 has risen from 10 per-
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•HR 1923 IH

1 cent to 30 percent and if the current trend con2 tinues, 50 percent of all births by the year 2015

3 will be out-of-wedlock;

(D) 3 4 ⁄4 of illegitimate births among whites

5 are to women with a high school education or

6 less;

7 (E) the 1-parent family is 6 times more

8 likely to be poor than the 2-parent family;

9 (F) children born into families receiving

10 welfare assistance are 3 times more likely than

11 children not born into families receiving welfare

12 to be on welfare when they reach adulthood;

13 (G) teenage single parent mothering is the

14 single biggest contributor to low birth weight

15 babies;

16 (H) children born out-of-wedlock are more

17 likely to experience low verbal cognitive attain18 ment, child abuse, and neglect;

19 (I) young people from single parent or

20 stepparent families are 2 to 3 times more likely

21 to have emotional or behavioral problems than

22 those from intact families;

23 (J) young white women who were raised in

24 a single parent family are more than twice as

25 likely to have children out-of-wedlock and to be-
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•HR 1923 IH

1 come parents as teenagers, and almost twice as

2 likely to have their marriages end in divorce, as

3 are children from 2-parent families;

4 (K) the younger the single parent mother,

5 the less likely she is to finish high school;

6 (L) young women who have children before

7 finishing high school are more likely to receive

8 welfare assistance for a longer period of time;

9 (M) between 1985 and 1990, the public

10 cost of births to teenage mothers under the aid

11 to families with dependent children program,

12 the food stamp program, and the medicaid pro13 gram has been estimated at $120,000,000,000;

14 (N) the absence of a father in the life of

15 a child has a negative effect on school perform16 ance and peer adjustment;

17 (O) the likelihood that a young black man

18 will engage in criminal activities doubles if he

19 is raised without a father and triples if he lives

20 in a neighborhood with a high concentration of

21 single parent families; and

22 (P) the greater the incidence of single par23 ent families in a neighborhood, the higher the

24 incidence of violent crime and burglary; and
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1 (4) in light of this demonstration of the crisis

2 in our Nation, the reduction of out-of-wedlock births

3 is an important government interest and the policy

4 contained in provisions of this subtitle address the

5 crisis.

6 SEC. 14101. BLOCK GRANTS TO STATES.

7 Title IV of the Social Security Act (42 U.S.C. 601

8 et seq.) is amended by striking part A, except sections

9 403(h) and 417, and inserting the following:

10 ‘‘PART A—BLOCK GRANTS TO STATES FOR

11 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES

12 ‘‘SEC. 401. PURPOSE.

13 ‘‘The purpose of this part is to increase the flexibility

14 of States in operating a program designed to—

15 ‘‘(1) provide assistance to needy families so that

16 the children in such families may be cared for in

17 their homes or in the homes of relatives;

18 ‘‘(2) end the dependence of needy parents on

19 government benefits by promoting work and mar20 riage; and

21 ‘‘(3) discourage out-of-wedlock births.

22 ‘‘SEC. 402. ELIGIBLE STATES; STATE PLAN.

23 ‘‘(a) IN GENERAL.—As used in this part, the term

24 ‘eligible State’ means, with respect to a fiscal year, a State

25 that, during the 3-year period immediately preceding the
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•HR 1923 IH

1 fiscal year, has submitted to the Secretary a plan that in2 cludes the following:

3 ‘‘(1) OUTLINE OF FAMILY ASSISTANCE PRO4 GRAM.—A written document that outlines how the

5 State intends to do the following:

6 ‘‘(A) Conduct a program designed to—

7 ‘‘(i) provide cash benefits to needy

8 families with children; and

9 ‘‘(ii) provide parents of children in

10 such families with work experience, assist11 ance in finding employment, and other

12 work preparation activities and support

13 services that the State considers appro14 priate to enable such families to leave the

15 program and become self-sufficient.

16 ‘‘(B) Require at least 1 parent of a child

17 in any family which has received benefits for

18 more than 24 months (whether or not consecu19 tive) under the program to engage in work ac20 tivities (as defined by the State).

21 ‘‘(C) Ensure that parents receiving assist22 ance under the program engage in work activi23 ties in accordance with section 404.
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•HR 1923 IH

1 ‘‘(D) Treat interstate immigrants, if fami2 lies including such immigrants are to be treated

3 differently than other families.

4 ‘‘(E) Take such reasonable steps as the

5 State deems necessary to restrict the use and

6 disclosure of information about individuals and

7 families receiving benefits under the program.

8 ‘‘(F) Take actions to reduce the incidence

9 of out-of-wedlock pregnancies, which may in10 clude providing unmarried mothers and unmar11 ried fathers with services which will help

12 them—

13 ‘‘(i) avoid subsequent pregnancies;

14 and

15 ‘‘(ii) provide adequate care to their

16 children.

17 ‘‘(G) Reduce teenage pregnancy, including

18 (at the option of the State) through the provi19 sion of education and counseling to male and

20 female teenagers.

21 ‘‘(2) CERTIFICATION THAT THE STATE WILL

22 OPERATE A CHILD SUPPORT ENFORCEMENT PRO23 GRAM.—A certification by the Governor of the State

24 that, during the fiscal year, the State will operate a

25 child support enforcement program under the State
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1 plan approved under part D, in a manner that com2 plies with the requirements of such part.

3 ‘‘(3) CERTIFICATION THAT THE STATE WILL

4 OPERATE A CHILD PROTECTION PROGRAM.—A cer5 tification by the Governor of the State that, during

6 the fiscal year, the State will operate a child protec7 tion program in accordance with part B, which in8 cludes a foster care program and an adoption assist9 ance program.

10 ‘‘(b) DETERMINATIONS.—The Secretary shall deter11 mine whether a plan submitted pursuant to subsection (a)

12 contains the material required by subsection (a).

13 ‘‘SEC. 403. PAYMENTS TO STATES.

14 ‘‘(a) ENTITLEMENTS.—

15 ‘‘(1) GRANTS FOR FAMILY ASSISTANCE.—

16 ‘‘(A) IN GENERAL.—Each eligible State

17 shall be entitled to receive from the Secretary

18 for each of fiscal years 1996, 1997, 1998,

19 1999, and 2000 a grant in an amount equal to

20 the State family assistance grant for the fiscal

21 year.

22 ‘‘(B) GRANT INCREASED TO REWARD

23 STATES THAT REDUCE OUT-OF-WEDLOCK

24 BIRTHS.—The amount of the grant payable to

25 a State under subparagraph (A) for fiscal year
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1 1998 or any succeeding fiscal year shall be in2 creased by—

3 ‘‘(i) 5 percent if the illegitimacy ratio

4 of the State for the fiscal year is at least

5 1 percentage point lower than the illegit6 imacy ratio of the State for fiscal year

7 1995; or

8 ‘‘(ii) 10 percent if the illegitimacy

9 ratio of the State for the fiscal year is at

10 least 2 percentage points lower than the il11 legitimacy ratio of the State for fiscal year

12 1995.

13 ‘‘(2) SUPPLEMENTAL GRANTS TO ADJUST FOR

14 POPULATION INCREASES.—In addition to any grant

15 under paragraph (1), each eligible State shall be en16 titled to receive from the Secretary for each of fiscal

17 years 1997, 1998, 1999, and 2000, a grant in an

18 amount equal to the State proportion of

19 $100,000,000.

20 ‘‘(b) DEFINITIONS.—As used in this section:

21 ‘‘(1) STATE FAMILY ASSISTANCE GRANT.—

22 ‘‘(A) IN GENERAL.—The term ‘State fam23 ily assistance grant’ means, with respect to a

24 fiscal year, the provisional State family assist-
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1 ance grant adjusted in accordance with sub2 paragraph (C).

3 ‘‘(B) PROVISIONAL STATE FAMILY ASSIST4 ANCE GRANT.—The term ‘provisional State

5 family assistance grant’ means—

6 ‘‘(i) the greater of—

‘‘(I) 1 7 ⁄3 of the total amount of ob8 ligations to the State under section

9 403 of this title (as in effect before

10 October 1, 1995) for fiscal years

11 1992, 1993, and 1994 (other than

12 with respect to amounts expended for

13 child care under subsection (g) or (i)

14 of section 402 of this title (as so in ef15 fect)); or

16 ‘‘(II) the total amount of obliga17 tions to the State under such section

18 403 for fiscal year 1994 (other than

19 with respect to amounts expended for

20 child care under subsection (g) or (i)

21 of section 402 of this title (as so in ef22 fect)); multiplied by

23 ‘‘(ii)(I) the total amount of outlays to

24 all of the States under such section 403

25 for fiscal year 1994 (other than with re-
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•HR 1923 IH

1 spect to amounts expended for child care

2 under subsection (g) or (i) of section 402

3 of this title (as so in effect)); divided by

4 ‘‘(II) the total amount of obligations

5 to all of the States under such section 403

6 for fiscal year 1994 (other than with re7 spect to amounts expended for child care

8 under subsection (g) or (i) of section 402

9 of this title (as so in effect)).

10 ‘‘(C) PROPORTIONAL ADJUSTMENT.—The

11 Secretary shall determine the percentage (if

12 any) by which each provisional State family as13 sistance grant must be reduced or increased to

14 ensure that the sum of such grants equals

15 $15,390,296,000, and shall adjust each provi16 sional State family assistance grant by the per17 centage so determined.

18 ‘‘(2) ILLEGITIMACY RATIO.—The term ‘illegit19 imacy ratio’ means, with respect to a State and a

20 fiscal year—

21 ‘‘(A) the sum of—

22 ‘‘(i) the number of out-of-wedlock

23 births that occurred in the State during

24 the most recent fiscal year for which such

25 information is available; and
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1 ‘‘(ii) the amount (if any) by which the

2 number of abortions performed in the

3 State during the most recent fiscal year for

4 which such information is available exceeds

5 the number of abortions performed in the

6 State during the fiscal year that imme7 diately precedes such most recent fiscal

8 year; divided by

9 ‘‘(B) the number of births that occurred in

10 the State during the most recent fiscal year for

11 which such information is available.

12 ‘‘(3) STATE PROPORTION.—The term ‘State

13 proportion’ means, with respect to a fiscal year, the

14 amount that bears the same ratio to the amount

15 specified in subsection (a)(2) as the increase (if any)

16 in the population of the State for the most recent

17 fiscal year for which such information is available

18 over the population of the State for the fiscal year

19 that immediately precedes such most recent fiscal

20 year bears to the total increase in the population of

21 all States which have such an increase in population,

22 as determined by the Secretary using data from the

23 Bureau of the Census.
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1 ‘‘(4) FISCAL YEAR.—The term ‘fiscal year’

2 means any 12-month period ending on September 30

3 of a calendar year.

4 ‘‘(5) STATE.—The term ‘State’ includes the

5 several States, the District of Columbia, the Com6 monwealth of Puerto Rico, the United States Virgin

7 Islands, Guam, and American Samoa.

8 ‘‘(c) USE OF GRANT.—

9 ‘‘(1) IN GENERAL.—A State to which a grant

10 is made under this section may use the grant in any

11 manner that is reasonably calculated to accomplish

12 the purpose of this part, subject to this part, includ13 ing to provide noncash assistance to mothers who

14 have not attained 18 years of age and their children

15 and to provide low income households with assist16 ance in meeting home heating and cooling costs.

17 Notwithstanding any other provision of this Act, a

18 State to which a grant is made under section 403

19 may not use any part of the grant to provide medi20 cal services.

21 ‘‘(2) AUTHORITY TO TREAT INTERSTATE IMMI22 GRANTS UNDER RULES OF FORMER STATE.—A State

23 to which a grant is made under this section may

24 apply to a family the rules of the program operated

25 under this part of another State if the family has
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1 moved to the State from the other State and has re2 sided in the State for less than 12 months.

3 ‘‘(3) AUTHORITY TO USE PORTION OF GRANT

4 FOR OTHER PURPOSES.—

5 ‘‘(A) IN GENERAL.—A State may use not

6 more than 30 percent of the amount of the

7 grant made to the State under this section for

8 a fiscal year to carry out a State program pur9 suant to any or all of the following provisions

10 of law:

11 ‘‘(i) Part B of this title.

12 ‘‘(ii) Title XX of this Act.

13 ‘‘(iii) Any provision of law, enacted

14 into law during the 104th Congress, under

15 which grants are made to States for food

16 and nutrition.

17 ‘‘(iv) The Child Care and Develop18 ment Block Grant Act of 1990.

19 ‘‘(B) APPLICABLE RULES.—Any amount

20 paid to the State under this part that is used

21 to carry out a State program pursuant to a pro22 vision of law specified in subparagraph (A)

23 shall not be subject to the requirements of this

24 part, but shall be subject to the requirements

25 that apply to Federal funds provided directly
749

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1 under the provision of law to carry out the pro2 gram.

3 ‘‘(4) AUTHORITY TO RESERVE CERTAIN

4 AMOUNTS FOR EMERGENCY BENEFITS.—A State

5 may reserve amounts paid to the State under this

6 section for any fiscal year for the purpose of provid7 ing emergency assistance under the State program

8 operated under this part.

9 ‘‘(5) IMPLEMENTATION OF ELECTRONIC BENE10 FIT TRANSFER SYSTEM.—A State to which a grant

11 is made under this section is encouraged to imple12 ment an electronic benefit transfer system for pro13 viding assistance under the State program funded

14 under this part, and may use the grant for such pur15 pose.

16 ‘‘(d) TIMING OF PAYMENTS.—The Secretary shall

17 pay each grant payable to a State under this section in

18 quarterly installments.

19 ‘‘(e) PENALTIES.—

20 ‘‘(1) FOR USE OF GRANT IN VIOLATION OF

21 THIS PART.—

22 ‘‘(A) IN GENERAL.—If an audit conducted

23 pursuant to chapter 75 of title 31, United

24 States Code, finds that an amount paid to a

25 State under this section for a fiscal year has
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•HR 1923 IH

1 been used in violation of this part, then the

2 Secretary shall reduce the amount of the grant

3 otherwise payable to the State under this sec4 tion for the immediately succeeding fiscal year

5 by the amount so used.

6 ‘‘(B) LIMITATION ON AMOUNT OF PEN7 ALTY.—In carrying out subparagraph (A), the

8 Secretary shall not reduce any quarterly pay9 ment by more than 25 percent.

10 ‘‘(C) CARRYFORWARD OF UNRECOVERED

11 PENALTIES.—To the extent that subparagraph

12 (B) prevents the Secretary from recovering dur13 ing a fiscal year the full amount of a penalty

14 imposed on a State under subparagraph (A) for

15 a prior fiscal year, the Secretary shall apply

16 subparagraph (A) to the grant otherwise pay17 able to the State under this section for the im18 mediately succeeding fiscal year.

19 ‘‘(2) FOR FAILURE TO SUBMIT REQUIRED RE20 PORT.—

21 ‘‘(A) IN GENERAL.—If the Secretary deter22 mines that a State has not, within 6 months

23 after the end of a fiscal year, submitted the re24 port required by section 406 for the fiscal year,

25 the Secretary shall reduce by 3 percent the
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1 amount of the grant that would (in the absence

2 of this subsection, subsection (a)(1)(B) of this

3 section, and section 404(c)(2)) be payable to

4 the State under subsection (a)(1)(A) for the im5 mediately succeeding fiscal year.

6 ‘‘(B) RESCISSION OF PENALTY.—The Sec7 retary shall rescind a penalty imposed on a

8 State under subparagraph (A) with respect to a

9 report for a fiscal year if the State submits the

10 report before the end of the immediately suc11 ceeding fiscal year.

12 ‘‘(3) FOR FAILURE TO PARTICIPATE IN THE IN13 COME AND ELIGIBILITY VERIFICATION SYSTEM.—If

14 the Secretary determines that a State program fund15 ed under this part is not participating during a fis16 cal year in the income and eligibility verification sys17 tem required by section 1137, the Secretary shall re18 duce by 1 percent the amount of the grant that

19 would (in the absence of this subsection, subsection

20 (a)(1)(B) of this section, and section 404(c)(2)) be

21 payable to the State under subsection (a)(1)(A) for

22 the fiscal year.

23 ‘‘(f) LIMITATION ON FEDERAL AUTHORITY.—The

24 Secretary may not regulate the conduct of States under
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•HR 1923 IH

1 this part or enforce any provision of this part, except to

2 the extent expressly provided in this part.

3 ‘‘(g) FEDERAL RAINY DAY FUND.—

4 ‘‘(1) ESTABLISHMENT.—There is hereby estab5 lished in the Treasury of the United States a revolv6 ing loan fund which shall be known as the ‘Federal

7 Rainy Day Fund’.

8 ‘‘(2) DEPOSITS INTO FUND.—

9 ‘‘(A) APPROPRIATION.—Out of any money

10 in the Treasury of the United States not other11 wise appropriated, $1,000,000,000 are hereby

12 appropriated for fiscal year 1996 for payment

13 to the Federal Rainy Day Fund.

14 ‘‘(B) LOAN REPAYMENTS.—The Secretary

15 shall deposit into the fund any principal or in16 terest payment received with respect to a loan

17 made under this subsection.

18 ‘‘(3) AVAILABILITY.—Amounts in the fund are

19 authorized to remain available without fiscal year

20 limitation for the purpose of making loans and re21 ceiving payments of principal and interest on such

22 loans, in accordance with this subsection.

23 ‘‘(4) USE OF FUND.—

24 ‘‘(A) LOANS TO QUALIFIED STATES.—
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•HR 1923 IH

1 ‘‘(i) IN GENERAL.—The Secretary

2 shall make loans from the fund to any

3 qualified State for a period to maturity of

4 not more than 3 years.

5 ‘‘(ii) RATE OF INTEREST.—The Sec6 retary shall charge and collect interest on

7 any loan made under clause (i) at a rate

8 equal to the current average market yield

9 on outstanding marketable obligations of

10 the United States with remaining periods

11 to maturity comparable to the period to

12 maturity of the loan.

13 ‘‘(iii) MAXIMUM LOAN.—The amount

14 of any loan made to a State under clause

15 (i) during a fiscal year shall not exceed the

16 lesser of—

17 ‘‘(I) 50 percent of the amount of

18 the grant payable to the State under

19 this section for the fiscal year; or

20 ‘‘(II) $100,000,000.

21 ‘‘(B) QUALIFIED STATE DEFINED.—A

22 State is a qualified State for purposes of sub23 paragraph (A) if the unemployment rate of the

24 State (as determined by the Bureau of Labor
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•HR 1923 IH

1 Statistics) for the most recent 3-month period

2 for which such information is available is—

3 ‘‘(i) more than 6.5 percent; and

4 ‘‘(ii) at least 110 percent of such rate

5 for the corresponding 3-month period in ei6 ther of the 2 immediately preceding cal7 endar years.

8 ‘‘SEC. 404. MANDATORY WORK REQUIREMENTS.

9 ‘‘(a) PARTICIPATION RATE REQUIREMENTS.—

10 ‘‘(1) REQUIREMENT APPLICABLE TO ALL FAMI11 LIES RECEIVING ASSISTANCE.—

12 ‘‘(A) IN GENERAL.—A State to which a

13 grant is made under section 403 for a fiscal

14 year shall achieve the minimum participation

15 rate specified in the following table for the fis16 cal year with respect to all families receiving as17 sistance under the State program funded under

18 this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ............................................................... 10

1997 ............................................................... 15

1998 ............................................................... 20

1999 ............................................................... 25

2000 ............................................................... 27

2001 ............................................................... 29

2002 ............................................................... 40

2003 or thereafter ......................................... 50.

19 ‘‘(B) PRO RATA REDUCTION OF PARTICIPA20 TION RATE DUE TO CASELOAD REDUCTIONS
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1 NOT REQUIRED BY FEDERAL LAW.—The mini2 mum participation rate otherwise required by

3 subparagraph (A) for a fiscal year shall be re4 duced by a percentage equal to the percentage

5 (if any) by which the number of families receiv6 ing assistance during the fiscal year under the

7 State program funded under this part is less

8 than the number of families that received aid

9 under the State plan approved under part A of

10 this title (as in effect before October 1, 1995)

11 during the fiscal year immediately preceding

12 such effective date, except to the extent that the

13 Secretary determines that the reduction in the

14 number of families receiving such assistance is

15 required by Federal law.

16 ‘‘(C) PARTICIPATION RATE.—For purposes

17 of this paragraph:

18 ‘‘(i) AVERAGE MONTHLY RATE.—The

19 participation rate of a State for a fiscal

20 year is the average of the participation

21 rates of the State for each month in the

22 fiscal year.

23 ‘‘(ii) MONTHLY PARTICIPATION

24 RATES.—The participation rate of a State

25 for a month is—
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1 ‘‘(I) the number of families re2 ceiving cash assistance under the

3 State program funded under this part

4 which include an individual who is en5 gaged in work activities for the

6 month; divided by

7 ‘‘(II) the total number of families

8 receiving cash assistance under the

9 State program funded under this part

10 during the month which include an in11 dividual who has attained 18 years of

12 age.

13 ‘‘(iii) ENGAGED.—A recipient is en14 gaged in work activities for a month in a

15 fiscal year if the recipient is making

16 progress in such activities for at least the

17 minimum average number of hours per

18 week specified in the following table during

19 the month, not fewer than 20 hours per

20 week of which are attributable to an activ21 ity described in subparagraph (A), (B),

22 (C), or (D) of subsection (b)(1) (or, in the

23 case of the first 4 weeks for which the re24 cipient is required under this section to
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1 participate in work activities, an activity

2 described in subsection (b)(1)(E)):

The minimum

‘‘If the month is average number of

in fiscal year: hours per week is:

1996 ..................................................... 20

1997 ..................................................... 20

1998 ..................................................... 20

1999 ..................................................... 25

2000 ..................................................... 30

2001 ..................................................... 30

2002 ..................................................... 35

2003 or thereafter ................................ 35.

3 ‘‘(2) REQUIREMENT APPLICABLE TO 2-PARENT

4 FAMILIES.—

5 ‘‘(A) IN GENERAL.—A State to which a

6 grant is made under section 403 for a fiscal

7 year shall achieve the minimum participation

8 rate specified in the following table for the fis9 cal year with respect to 2-parent families receiv10 ing assistance under the State program funded

11 under this part:

The minimum

participation

‘‘If the fiscal year is: rate is:

1996 ............................................................... 50

1997 ............................................................... 50

1998 or thereafter ......................................... 90.

12 ‘‘(B) PARTICIPATION RATE.—For purposes

13 of this paragraph:

14 ‘‘(i) AVERAGE MONTHLY RATE.—The

15 participation rate of a State for a fiscal

16 year is the average of the participation
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1 rates of the State for each month in the

2 fiscal year.

3 ‘‘(ii) MONTHLY PARTICIPATION

4 RATES.—The participation rate of a State

5 for a month is—

6 ‘‘(I) the number of 2-parent fam7 ilies receiving cash assistance under

8 the State program funded under this

9 part which include at least 1 adult

10 who is engaged in work activities for

11 the month; divided by

12 ‘‘(II) the total number of 2-par13 ent families receiving cash assistance

14 under the State program funded

15 under this part during the month.

16 ‘‘(iii) ENGAGED.—An adult is engaged

17 in work activities for a month in a fiscal

18 year if the adult is making progress in

19 such activities for at least 35 hours per

20 week during the month, not fewer than 30

21 hours per week of which are attributable to

22 an activity described in subparagraph (A),

23 (B), (C), or (D) of subsection (b)(1) (or, in

24 the case of the first 4 weeks for which the

25 recipient is required under this section to
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•HR 1923 IH

1 participate in work activities, an activity

2 described in subsection (b)(1)(E)).

3 ‘‘(b) DEFINITIONS.—As used in this section:

4 ‘‘(1) WORK ACTIVITIES.—The term ‘work ac5 tivities’ means—

6 ‘‘(A) unsubsidized employment;

7 ‘‘(B) subsidized private sector employment;

8 ‘‘(C) subsidized public sector employment

9 or work experience (including work associated

10 with the refurbishing of publicly assisted hous11 ing) only if sufficient private sector employment

12 is not available;

13 ‘‘(D) on-the-job training;

14 ‘‘(E) job search and job readiness assist15 ance;

16 ‘‘(F) education directly related to employ17 ment, in the case of a recipient who has not at18 tained 20 years of age, and has not received a

19 high school diploma or a certificate of high

20 school equivalency;

21 ‘‘(G) job skills training directly related to

22 employment; or

23 ‘‘(H) at the option of the State, satisfac24 tory attendance at secondary school, in the case

25 of a recipient who—
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1 ‘‘(i) has not completed secondary

2 school; and

3 ‘‘(ii) is a dependent child, or a head of

4 household who has not attained 20 years

5 of age.

6 ‘‘(2) FISCAL YEAR.—The term ‘fiscal year’

7 means any 12-month period ending on September 30

8 of a calendar year.

9 ‘‘(c) PENALTIES.—

10 ‘‘(1) AGAINST INDIVIDUALS.—

11 ‘‘(A) APPLICABLE TO ALL FAMILIES.—A

12 State to which a grant is made under section

13 403 shall ensure that the amount of cash as14 sistance paid under the State program funded

15 under this part to a recipient of assistance

16 under the program who refuses to engage (with17 in the meaning of subsection (a)(1)(C)(iii)) in

18 work activities required under this section shall

19 be less than the amount of cash assistance that

20 would otherwise be paid to the recipient under

21 the program, subject to such good cause and

22 other exceptions as the State may establish.

23 ‘‘(B) APPLICABLE TO 2-PARENT FAMI24 LIES.—A State to which a grant is made under

25 section 403 shall reduce the amount of cash as-
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•HR 1923 IH

1 sistance otherwise payable to a 2-parent family

2 for a month under the State program funded

3 under this part with respect to an adult in the

4 family who is not engaged (within the meaning

5 of subsection (a)(2)(B)(iii)) in work activities

6 for at least 35 hours per week during the

7 month, pro rata (or more, at the option of the

8 State) with respect to any period during the

9 month for which the adult is not so engaged.

10 ‘‘(C) LIMITATION ON FEDERAL AUTHOR11 ITY.—No officer or employee of the Federal

12 Government may regulate the conduct of States

13 under this paragraph or enforce this paragraph

14 against any State.

15 ‘‘(2) AGAINST STATES.—

16 ‘‘(A) IN GENERAL.—If the Secretary deter17 mines that a State to which a grant is made

18 under section 403 for a fiscal year has failed to

19 comply with subsection (a) for the fiscal year,

20 the Secretary shall reduce by not more than 5

21 percent the amount of the grant that would (in

22 the absence of this paragraph and subsections

23 (a)(1)(B) and (e) of section 403) be payable to

24 the State under section 403(a)(1)(A) for the

25 immediately succeeding fiscal year.
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•HR 1923 IH

1 ‘‘(B) PENALTY BASED ON SEVERITY OF

2 FAILURE.—The Secretary shall impose reduc3 tions under subparagraph (A) based on the de4 gree of noncompliance.

5 ‘‘(d) RULE OF INTERPRETATION.—This section shall

6 not be construed to prohibit a State from offering recipi7 ents of assistance under the State program funded under

8 this part an opportunity to participate in an education or

9 training program, consistent with the requirements of this

10 section.

11 ‘‘(e) RESEARCH.—The Secretary shall conduct re12 search on the costs and benefits of State activities under

13 this section.

14 ‘‘(f) EVALUATION OF INNOVATIVE APPROACHES TO

15 EMPLOYING RECIPIENTS OF ASSISTANCE.—The Sec16 retary shall evaluate innovative approaches to employing

17 recipients of assistance under State programs funded

18 under this part.

19 ‘‘(g) ANNUAL RANKING OF STATES AND REVIEW OF

20 MOST AND LEAST SUCCESSFUL WORK PROGRAMS.—

21 ‘‘(1) ANNUAL RANKING OF STATES.—The Sec22 retary shall rank the States to which grants are paid

23 under section 403 in the order of their success in

24 moving recipients of assistance under the State pro-
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•HR 1923 IH

1 gram funded under this part into long-term private

2 sector jobs.

3 ‘‘(2) ANNUAL REVIEW OF MOST AND LEAST

4 SUCCESSFUL WORK PROGRAMS.—The Secretary shall

5 review the programs of the 3 States most recently

6 ranked highest under paragraph (1) and the 3

7 States most recently ranked lowest under paragraph

8 (1) that provide parents with work experience, as9 sistance in finding employment, and other work

10 preparation activities and support services to enable

11 the families of such parents to leave the program

12 and become self-sufficient.

13 ‘‘(h) SENSE OF THE CONGRESS.—In complying with

14 this section, each State that operates a program funded

15 under this part is encouraged to assign the highest prior16 ity to requiring families that include older preschool or

17 school-age children to be engaged in work activities.

18 ‘‘(i) SENSE OF THE CONGRESS THAT STATES

19 SHOULD IMPOSE CERTAIN REQUIREMENTS ON

20 NONCUSTODIAL, NONSUPPORTING MINOR PARENTS.—It

21 is the sense of the Congress that the States should require

22 noncustodial, nonsupporting parents who have not at23 tained 18 years of age to fulfill community work obliga24 tions and attend appropriate parenting or money manage25 ment classes after school.
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•HR 1923 IH

1 ‘‘SEC. 405. PROHIBITIONS.

2 ‘‘(a) IN GENERAL.—

3 ‘‘(1) NO ASSISTANCE FOR FAMILIES WITHOUT A

4 MINOR CHILD.—A State to which a grant is made

5 under section 403 may not use any part of the grant

6 to provide assistance to a family, unless the family

7 includes a minor child.

8 ‘‘(2) CERTAIN PAYMENTS NOT TO BE DIS9 REGARDED IN DETERMINING THE AMOUNT OF AS10 SISTANCE TO BE PROVIDED TO A FAMILY.—

11 ‘‘(A) INCOME SECURITY PAYMENTS.—If a

12 State to which a grant is made under section

13 403 uses any part of the grant to provide as14 sistance for any individual who is receiving a

15 payment under a State plan for old-age assist16 ance approved under section 2, a State program

17 funded under part B that provides cash pay18 ments for foster care, or the supplemental secu19 rity income program under title XVI (other

20 than service benefits provided through the use

21 of a grant made under part C of such title),

22 then the State may not disregard the payment

23 in determining the amount of assistance to be

24 provided to the family of which the individual is

25 a member under the State program funded

26 under this part.
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1 ‘‘(B) CERTAIN SUPPORT PAYMENTS.—A

2 State to which a grant is made under section

3 403 may not disregard an amount distributed

4 to a family under section 457(a)(1)(A) in deter5 mining the income of the family for purposes of

6 eligibility for assistance under the State pro7 gram funded under this part.

8 ‘‘(3) NO ASSISTANCE FOR CERTAIN ALIENS.—

9 Notwithstanding section 403(c)(1), a State to which

10 a grant is made under section 403 may not use any

11 part of the grant to provide assistance for an indi12 vidual who is not a citizen or national of the United

13 States, except consistent with subtitle D of the Per14 sonal Responsibility Act of 1995.

15 ‘‘(4) NO ASSISTANCE FOR OUT-OF-WEDLOCK

16 BIRTHS TO MINORS.—

17 ‘‘(A) GENERAL RULE.—A State to which a

18 grant is made under section 403 may not use

19 any part of the grant to provide cash benefits

20 for a child born out-of-wedlock to an individual

21 who has not attained 18 years of age, or for the

22 individual, until the individual attains such age.

23 ‘‘(B) EXCEPTION FOR RAPE OR INCEST.—

24 Subparagraph (A) shall not apply with respect
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•HR 1923 IH

1 to a child who is born as a result of rape or in2 cest.

3 ‘‘(C) STATE OPTION.—Nothing in subpara4 graph (A) shall be construed to prohibit a State

5 from using funds provided by section 403 from

6 providing aid in the form of vouchers that may

7 be used only to pay for particular goods and

8 services specified by the State as suitable for

9 the care of the child such as diapers, clothing,

10 and school supplies.

11 ‘‘(5) NO ADDITIONAL CASH ASSISTANCE FOR

12 CHILDREN BORN TO FAMILIES RECEIVING ASSIST13 ANCE.—

14 ‘‘(A) GENERAL RULE.—A State to which a

15 grant is made under section 403 may not use

16 any part of the grant to provide cash benefits

17 for a minor child who is born to—

18 ‘‘(i) a recipient of benefits under the

19 program operated under this part; or

20 ‘‘(ii) a person who received such bene21 fits at any time during the 10-month pe22 riod ending with the birth of the child.

23 ‘‘(B) EXCEPTION FOR VOUCHERS.—Sub24 paragraph (A) shall not apply to vouchers

25 which are provided in lieu of cash benefits and
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1 which may be used only to pay for particular

2 goods and services specified by the State as

3 suitable for the care of the child involved.

4 ‘‘(C) EXCEPTION FOR RAPE OR INCEST.—

5 Subparagraph (A) shall not apply with respect

6 to a child who is born as a result of rape or in7 cest.

8 ‘‘(6) NO ASSISTANCE FOR MORE THAN 5

9 YEARS.—

10 ‘‘(A) IN GENERAL.—A State to which a

11 grant is made under section 403 may not use

12 any part of the grant to provide cash benefits

13 for the family of an individual who, after at14 taining 18 years of age, has received benefits

15 under the program operated under this part for

16 60 months (whether or not consecutive) after

17 the effective date of this part, except as pro18 vided under subparagraph (B).

19 ‘‘(B) HARDSHIP EXCEPTION.—

20 ‘‘(i) IN GENERAL.—The State may ex21 empt a family from the application of sub22 paragraph (A) by reason of hardship.

23 ‘‘(ii) LIMITATION.—The number of

24 families with respect to which an exemp25 tion made by a State under clause (i) is in
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1 effect shall not exceed 10 percent of the

2 number of families to which the State is

3 providing assistance under the program op4 erated under this part.

5 ‘‘(7) NO ASSISTANCE FOR FAMILIES NOT CO6 OPERATING IN PATERNITY ESTABLISHMENT OR

7 CHILD SUPPORT.—Notwithstanding section

8 403(c)(1), a State to which a grant is made under

9 section 403 may not use any part of the grant to

10 provide assistance to a family that includes an indi11 vidual whom the agency responsible for administer12 ing the State plan approved under part D deter13 mines is not cooperating with the State in establish14 ing the paternity of any child of the individual, or

15 in establishing, modifying, or enforcing a support

16 order with respect to such a child.

17 ‘‘(8) NO ASSISTANCE FOR FAMILIES NOT AS18 SIGNING SUPPORT RIGHTS TO THE STATE.—Not19 withstanding section 403(c)(1), a State to which a

20 grant is made under section 403 may not use any

21 part of the grant to provide assistance to a family

22 that includes an individual who has not assigned to

23 the State any rights the individual may have (on be24 half of the individual or of any other person for

25 whom the individual has applied for or is receiving
769

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1 such assistance) to support from any other person

2 for any period for which the individual receives such

3 assistance.

4 ‘‘(9) WITHHOLDING OF PORTION OF ASSIST5 ANCE FOR FAMILIES WHICH INCLUDE A CHILD

6 WHOSE PATERNITY IS NOT ESTABLISHED.—

7 ‘‘(A) IN GENERAL.—A State to which a

8 grant is made under section 403 may not fail

9 to—

10 ‘‘(i) withhold assistance under the

11 State program funded under this part from

12 a family which includes a child whose pa13 ternity is not established, in an amount

14 equal to $50 or 15 percent of the amount

15 of the amount of the assistance that would

16 (in the absence of this paragraph) be pro17 vided to the family with respect to the

18 child, whichever the State elects; or

19 ‘‘(ii) provide to the family the total

20 amount of assistance so withheld once the

21 paternity of the child is established, if the

22 family is then eligible for such assistance.

23 ‘‘(B) EXCEPTION FOR RAPE OR INCEST.—Sub24 paragraph (A) shall not apply with respect to a child

25 who is born as a result of rape or incest.
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1 ‘‘(10) DENIAL OF ASSISTANCE FOR 10 YEARS

2 TO A PERSON FOUND TO HAVE FRAUDULENTLY MIS3 REPRESENTED RESIDENCE IN ORDER TO OBTAIN

4 BENEFITS IN 2 OR MORE STATES.—An individual

5 shall not be considered an eligible individual for the

6 purposes of this title during the 10-year period that

7 begins with the date the individual is found by a

8 State to have made, or is convicted in Federal or

9 State court of having made a fraudulent statement

10 or representation with respect to the place of resi11 dence of the person in order to receive benefits or

12 services simultaneously from 2 or more States under

13 programs that are funded under this part, title XIX,

14 the consolidated program of food assistance under

15 chapter 2 of subtitle E of title XIV of the Personal

16 Responsibility Act of 1995, or the Food Stamp Act

17 of 1977 (as in effect before the effective date of such

18 chapter), or benefits in 2 or more States under the

19 supplemental security income program under title

20 XVI.

21 ‘‘(11) DENIAL OF ASSISTANCE FOR FUGITIVE

22 FELONS AND PROBATION AND PAROLE VIOLA23 TORS.—

24 ‘‘(A) IN GENERAL.—A State to which a

25 grant is made under section 403 may not use
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1 any part of the grant to provide assistance to

2 any individual who is—

3 ‘‘(i) fleeing to avoid prosecution, or

4 custody or confinement after conviction,

5 under the laws of the place from which the

6 individual flees, for a crime, or an attempt

7 to commit a crime, which is a felony under

8 the laws of the place from which the indi9 vidual flees, or which, in the case of the

10 State of New Jersey, is a high mis11 demeanor under the laws of such State; or

12 ‘‘(ii) violating a condition of probation

13 or parole imposed under Federal or State

14 law.

15 ‘‘(B) EXCHANGE OF INFORMATION WITH

16 LAW ENFORCEMENT AGENCIES.—If a State to

17 which a grant is made under section 403 estab18 lishes safeguards against the use or disclosure

19 of information about applicants or recipients of

20 assistance under the State program funded

21 under this part, the safeguards shall not pre22 vent the State agency administering the pro23 gram from furnishing a Federal, State, or local

24 law enforcement officer, upon the request of the

25 officer, with the current address of any recipi-
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1 ent if the officer furnishes the agency with the

2 name of the recipient and notifies the agency

3 that—

4 (i) such recipient—

5 (I) is fleeing to avoid prosecution,

6 or custody or confinement after con7 viction, under the laws of the place

8 from which the recipient flees, for a

9 crime, or an attempt to commit a

10 crime, which is a felony under the

11 laws of the place from which the re12 cipient flees, or which, in the case of

13 the State of New Jersey, is a high

14 misdemeanor under the laws of such

15 State;

16 (II) is violating a condition of

17 probation or parole imposed under

18 Federal or State law; or

19 (III) has information that is nec20 essary for the officer to conduct the

21 official duties of the officer; and

22 (ii) the location or apprehension of the

23 recipient is within such official duties.
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1 ‘‘(12) DENIAL OF ASSISTANCE FOR MINOR

2 CHILDREN WHO ARE ABSENT FROM THE HOME FOR

3 A SIGNIFICANT PERIOD.—

4 ‘‘(A) IN GENERAL.—A State to which a

5 grant is made under section 403 may not use

6 any part of the grant to provide assistance for

7 a minor child who has been, or is expected by

8 a parent (or other caretaker relative) of the

9 child to be, absent from the home for a period

10 of 45 consecutive days or, at the option of the

11 State, such period of not less than 30 and not

12 more than 90 consecutive days as the State

13 may provide for in the State plan submitted

14 pursuant to section 402.

15 ‘‘(B) STATE AUTHORITY TO ESTABLISH

16 GOOD CAUSE EXCEPTIONS.—The State may es17 tablish such good cause exceptions to subpara18 graph (A) as the State considers appropriate if

19 such exceptions are provided for in the State

20 plan submitted pursuant to section 402.

21 ‘‘(C) DENIAL OF ASSISTANCE FOR REL22 ATIVE WHO FAILS TO NOTIFY STATE AGENCY

23 OF ABSENCE OF CHILD.—A State to which a

24 grant is made under section 403 may not use

25 any part of the grant to provide assistance for
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1 an individual who is a parent (or other care2 taker relative) of a minor child and who fails to

3 notify the agency administering the State pro4 gram funded under this part, of the absence of

5 the minor child from the home for the period

6 specified in or provided for under subparagraph

7 (A), by the end of the 5-day period that begins

8 with the date that it becomes clear to the par9 ent (or relative) that the minor child will be ab10 sent for such period so specified or provided

11 for.

12 ‘‘(b) MINOR CHILD DEFINED.—As used in sub13 section (a), the term ‘minor child’ means an individual—

14 ‘‘(1) who has not attained 18 years of age; or

15 ‘‘(2) who—

16 ‘‘(A) has not attained 19 years of age; and

17 ‘‘(B) is a full-time student in a secondary

18 school (or in the equivalent level of vocational

19 or technical training).

20 ‘‘SEC. 406. DATA COLLECTION AND REPORTING.

21 ‘‘(a) IN GENERAL.—Each State to which a grant is

22 made under section 403 for a fiscal year shall, not later

23 than 6 months after the end of the fiscal year, transmit

24 to the Secretary the following aggregate information on

25 families to which assistance was provided during the fiscal
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1 year under the State program operated under this part

2 or an equivalent State program:

3 ‘‘(1) The number of adults receiving such as4 sistance.

5 ‘‘(2) The number of children receiving such as6 sistance and the average age of the children.

7 ‘‘(3) The employment status of such adults, and

8 the average earnings of employed adults receiving

9 such assistance.

10 ‘‘(4) The number of 1-parent families in which

11 the parent is a widow or widower, is divorced, is sep12 arated, or has never married.

13 ‘‘(5) The age, race, and educational attainment

14 of the adults receiving such assistance.

15 ‘‘(6) The average assistance provided to the

16 families under the program.

17 ‘‘(7) Whether, at the time of application for as18 sistance under the program, the families or any

19 member of the families receives benefits under any

20 of the following:

21 ‘‘(A) Any housing program.

22 ‘‘(B) The consolidated program of food as23 sistance under chapter 2 of subtitle E of title

24 XIV of the Personal Responsibility Act of 1995.
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1 ‘‘(C) The Head Start programs carried out

2 under the Head Start Act.

3 ‘‘(D) Any job training program.

4 ‘‘(8) The number of months, since the most re5 cent application for assistance under the program,

6 for which such assistance has been provided to the

7 families.

8 ‘‘(9) The total number of months for which as9 sistance has been provided to the families under the

10 program.

11 ‘‘(10) Any other data necessary to indicate

12 whether the State is in compliance with the plan

13 most recently submitted by the State pursuant to

14 section 402.

15 ‘‘(11) The components of any program carried

16 out by the State to provide employment and training

17 activities in order to comply with section 404, and

18 the average monthly number of adults in each such

19 component.

20 ‘‘(12) The number of part-time job placements

21 and the number of full-time job placements made

22 through the program referred to in paragraph (11),

23 the number of cases with reduced assistance, and

24 the number of cases closed due to employment.
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1 ‘‘(b) AUTHORITY OF STATES TO USE ESTIMATES.—

2 A State may comply with the requirement to provide pre3 cise numerical information described in subsection (a) by

4 submitting an estimate which is obtained through the use

5 of scientifically acceptable sampling methods.

6 ‘‘(c) REPORT ON USE OF FEDERAL FUNDS TO

7 COVER ADMINISTRATIVE COSTS AND OVERHEAD.—The

8 report required by subsection (a) for a fiscal year shall

9 include a statement of the percentage of the funds paid

10 to the State under this part for the fiscal year that are

11 used to cover administrative costs or overhead.

12 ‘‘(d) REPORT ON STATE EXPENDITURES ON PRO13 GRAMS FOR NEEDY FAMILIES.—The report required by

14 subsection (a) for a fiscal year shall include a statement

15 of the total amount expended by the State during the fis16 cal year on programs for needy families.

17 ‘‘(e) REPORT ON NONCUSTODIAL PARENTS PARTICI18 PATING IN WORK ACTIVITIES.—The report required by

19 subsection (a) for a fiscal year shall include the number

20 of noncustodial parents in the State who participated in

21 work activities (as defined in section 404(b)(1)) during the

22 fiscal year.
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1 ‘‘SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUD2 IES.

3 ‘‘(a) RESEARCH.—The Secretary may conduct re4 search on the effects, costs, and benefits of State pro5 grams funded under this part.

6 ‘‘(b) DEVELOPMENT AND EVALUATION OF INNOVA7 TIVE APPROACHES TO EMPLOYING WELFARE RECIPI8 ENTS.—The Secretary may assist States in developing,

9 and shall evaluate, innovative approaches to employing re10 cipients of cash assistance under programs funded under

11 this part. In performing such evaluations, the Secretary

12 shall, to the maximum extent feasible, use random assign13 ment to experimental and control groups.

14 ‘‘(c) STUDIES OF WELFARE CASELOADS.—The Sec15 retary may conduct studies of the caseloads of States oper16 ating programs funded under this part.

17 ‘‘(d) DISSEMINATION OF INFORMATION.—The Sec18 retary shall develop innovative methods of disseminating

19 information on any research, evaluations, and studies con20 ducted under this section, including the facilitation of the

21 sharing of information and best practices among States

22 and localities through the use of computers and other

23 technologies.

24 ‘‘SEC. 408. STUDY BY THE CENSUS BUREAU.

25 ‘‘(a) IN GENERAL.—The Bureau of the Census shall

26 expand the Survey of Income and Program Participation
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1 as necessary to obtain such information as will enable in2 terested persons to evaluate the impact of the amendments

3 made by subtitle A of the Personal Responsibility Act of

4 1995 on a random national sample of recipients of assist5 ance under State programs funded under this part and

6 (as appropriate) other low income families, and in doing

7 so, shall pay particular attention to the issues of out-of8 wedlock birth, welfare dependency, the beginning and end

9 of welfare spells, and the causes of repeat welfare spells.

10 ‘‘(b) APPROPRIATION.—Out of any money in the

11 Treasury of the United States not otherwise appropriated,

12 the Secretary of the Treasury shall pay to the Bureau of

13 the Census $10,000,000 for each of fiscal years 1996,

14 1997, 1998, 1999, and 2000 to carry out subsection (a).’’.

15 SEC. 14102. REPORT ON DATA PROCESSING.

16 (a) IN GENERAL.—Within 6 months after the date

17 of the enactment of this Act, the Secretary of Health and

18 Human Services shall prepare and submit to the Congress

19 a report on—

20 (1) the status of the automated data processing

21 systems operated by the States to assist manage22 ment in the administration of State programs under

23 part A of title IV of the Social Security Act (wheth24 er in effect before or after October 1, 1995); and
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1 (2) what would be required to establish a sys2 tem capable of—

3 (A) tracking participants in public pro4 grams over time; and

5 (B) checking case records of the States to

6 determine whether individuals are participating

7 in public programs of 2 or more States.

8 (b) PREFERRED CONTENTS.—The report required by

9 subsection (a) should include—

10 (1) a plan for building on the automated data

11 processing systems of the States to establish a sys12 tem with the capabilities described in subsection

13 (a)(2); and

14 (2) an estimate of the amount of time required

15 to establish such a system and of the cost of estab16 lishing such a system.

17 SEC. 14103. TRANSFERS.

18 (a) CHILD SUPPORT REVIEW PENALTIES.—

19 (1) TRANSFER OF PROVISION.—Section 403 of

20 the Social Security Act, as added by the amendment

21 made by section 14101 of this Act, is amended by

22 adding at the end subsection (h) of section 403, as

23 in effect immediately before the effective date of this

24 subtitle.
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1 (2) CONFORMING AMENDMENT.—Section

2 403(h)(3) of such Act, as in effect pursuant to para3 graph (1) of this subsection, is amended by striking

4 ‘‘, section 402(a)(27),’’.

5 (b) ASSISTANT SECRETARY FOR FAMILY SUPPORT.—

6 (1) REDESIGNATION OF PROVISION.—Section

7 417 of such Act (42 U.S.C. 617), as in effect imme8 diately before the effective date of this subtitle, is

9 amended by striking the following:

10 ‘‘ASSISTANT SECRETARY FOR FAMILY SUPPORT

11 ‘‘SEC. 417.’’

12 and inserting the following:

13 ‘‘SEC. 409. ASSISTANT SECRETARY FOR FAMILY SUPPORT.’’.

14 (2) TRANSFER OF PROVISION.—Part A of title

15 IV of such Act, as added by the amendment made

16 by section 14101 of this Act, is amended by adding

17 at the end the section amended by paragraph (1) of

18 this subsection.

19 (3) CONFORMING AMENDMENT.—Section 409

20 of such Act, as added by paragraph (2) of this sub21 section is amended by striking ‘‘, part D, and part

22 F’’ and inserting ‘‘and part D’’.

23 SEC. 14104. CONFORMING AMENDMENTS TO THE SOCIAL

24 SECURITY ACT.

25 (a) AMENDMENTS TO TITLE II.—
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1 (1) Section 205(c)(2)(C)(vi) of the Social Secu2 rity Act (42 U.S.C. 405(c)(2)(C)(vi)), as so redesig3 nated by section 321(a)(9)(B) of the Social Security

4 Independence and Program Improvements Act of

5 1994, is amended—

6 (A) by inserting ‘‘an agency administering

7 a program funded under part A of title IV or’’

8 before ‘‘an agency operating’’; and

9 (B) by striking ‘‘A or D of title IV of this

10 Act’’ and inserting ‘‘D of such title’’.

11 (2) Section 228(d)(1) of such Act (42 U.S.C.

12 428(d)(1)) is amended by inserting ‘‘under a State

13 program funded under’’ before ‘‘part A of title IV’’.

14 (b) AMENDMENTS TO PART D OF TITLE IV.—

15 (1) Section 451 of such Act (42 U.S.C. 651) is

16 amended by striking ‘‘aid’’ and inserting ‘‘assistance

17 under a State program funded’’.

18 (2) Section 452(a)(10)(C) of such Act (42

19 U.S.C. 652(a)(10)(C)) is amended—

20 (A) by striking ‘‘aid to families with de21 pendent children’’ and inserting ‘‘assistance

22 under a State program funded under part A’’;

23 and

24 (B) by striking ‘‘such aid’’ and inserting

25 ‘‘such assistance’’; and
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1 (C) by striking ‘‘under section 402(a)(26)’’

2 and inserting ‘‘pursuant to section 405(a)(8)’’.

3 (3) Section 452(a)(10)(F) of such Act (42

4 U.S.C. 652(a)(10)(F)) is amended—

5 (A) by striking ‘‘aid under a State plan ap6 proved’’ and inserting ‘‘assistance under a State

7 program funded’’; and

8 (B) by striking ‘‘in accordance with the

9 standards referred to in section

10 402(a)(26)(B)(ii)’’ and inserting ‘‘by the

11 State’’.

12 (4) Section 452(b) of such Act (42 U.S.C.

13 652(b)) is amended in the last sentence by striking

14 ‘‘plan approved under part A’’ and inserting ‘‘pro15 gram funded under part A’’.

16 (5) Section 452(d)(3)(B)(i) of such Act (42

17 U.S.C. 652(d)(3)(B)(i)) is amended by striking

18 ‘‘1115(c)’’ and inserting ‘‘1115(b)’’.

19 (6) Section 452(g)(2)(A)(ii)(I) of such Act (42

20 U.S.C. 652(g)(2)(A)(ii)(I)) is amended by striking

21 ‘‘aid is being paid under the State’s plan approved’’

22 and inserting ‘‘assistance is being provided under

23 the State program funded under’’.

24 (7) Section 452(g)(2)(A) of such Act (42

25 U.S.C. 652(g)(2)(A)) is amended in the matter fol-
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1 lowing clause (iii) by striking ‘‘aid was being paid

2 under the State’s plan approved’’ and inserting ‘‘as3 sistance was being provided under the State pro4 gram funded’’.

5 (8) Section 452(g)(2) of such Act (42 U.S.C.

6 652(g)(2)) is amended in the matter following sub7 paragraph (B)—

8 (A) by striking ‘‘who is a dependent child

9 by reason of the death of a parent’’ and insert10 ing ‘‘with respect to whom assistance is being

11 provided under the State program funded under

12 part A’’; and

13 (B) by inserting ‘‘by the State agency ad14 ministering the State plan approved under this

15 part’’ after ‘‘found’’;

16 (C) by striking ‘‘under section 402(a)(26)’’

17 and inserting ‘‘pursuant to section 405(a)(8)’’;

18 and

19 (D) by striking ‘‘administering the plan

20 under part E determines (as provided in section

21 454(4)(B))’’ and inserting ‘‘determines’’.

22 (9) Section 452(h) of such Act (42 U.S.C.

23 652(h)) is amended by striking ‘‘under section

24 402(a)(26)’’ and inserting ‘‘pursuant to section

25 405(a)(8)’’.
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1 (10) Section 454(5) of such Act (42 U.S.C.

2 654(5)) is amended—

3 (A) by striking ‘‘under section 402(a)(26)’’

4 and inserting ‘‘pursuant to section 405(a)(8)’’;

5 and

6 (B) by striking ‘‘except that this para7 graph shall not apply to such payments for any

8 month following the first month in which the

9 amount collected is sufficient to make such

10 family ineligible for assistance under the State

11 plan approved under part A;’’.

12 (11) Section 454(6)(D) of such Act (42 U.S.C.

13 654(6)(D)) is amended by striking ‘‘aid under a

14 State plan approved’’ and inserting ‘‘assistance

15 under a State program funded’’.

16 (12) Section 456 of such Act (42 U.S.C. 656)

17 is amended by striking ‘‘under section 402(a)(26)’’

18 each place such term appears and inserting ‘‘pursu19 ant to section 405(a)(8)’’.

20 (13) Section 466(a)(3)(B) of such Act (42

21 U.S.C. 666(a)(3)(B)) is amended by striking

22 ‘‘402(a)(26)’’ and inserting ‘‘405(a)(8)’’.

23 (14) Section 466(b)(2) of such Act (42 U.S.C.

24 666(b)(2)) is amended by striking ‘‘aid’’ and insert25 ing ‘‘assistance under a State program funded’’.
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1 (c) REPEAL OF PART F OF TITLE IV.—Part F of

2 title IV of such Act (42 U.S.C. 681–687) is hereby re3 pealed.

4 (d) AMENDMENT TO TITLE X.—Section 1002(a)(7)

5 of such Act (42 U.S.C. 1202(a)(7)) is amended by striking

6 ‘‘aid to families with dependent children under the State

7 plan approved under section 402 of this Act’’ and insert8 ing ‘‘assistance under a State program funded under part

9 A of title IV’’.

10 (e) AMENDMENTS TO TITLE XI.—

11 (1) Section 1108 of such Act (42 U.S.C. 1308)

12 is amended—

13 (A) by striking subsections (a), (b), (d),

14 and (e); and

15 (B) by striking ‘‘(c)’’.

16 (2) Section 1109 of such Act (42 U.S.C. 1309)

17 is amended by striking ‘‘or part A of title IV,’’.

18 (3) Section 1115(a) of such Act (42 U.S.C.

19 1315(a)) is amended—

20 (A) in the matter preceding paragraph (1),

21 by striking ‘‘A or’’;

22 (B) in paragraph (1), by striking ‘‘402,’’;

23 and

24 (C) in paragraph (2), by striking ‘‘403,’’.
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1 (4) Section 1116 of such Act (42 U.S.C. 1316)

2 is amended—

3 (A) in each of subsections (a)(1), (b), and

4 (d), by striking ‘‘or part A of title IV,’’; and

5 (B) in subsection (a)(3), by striking

6 ‘‘404,’’.

7 (5) Section 1118 of such Act (42 U.S.C. 1318)

8 is amended—

9 (A) by striking ‘‘403(a),’’;

10 (B) by striking ‘‘and part A of title IV,’’;

11 and

12 (C) by striking ‘‘, and shall, in the case of

13 American Samoa, mean 75 per centum with re14 spect to part A of title IV’’.

15 (6) Section 1119 of such Act (42 U.S.C. 1319)

16 is amended—

17 (A) by striking ‘‘or part A of title IV’’; and

18 (B) by striking ‘‘403(a),’’.

19 (7) Section 1133(a) of such Act (42 U.S.C.

20 1320b–3(a)) is amended by striking ‘‘or part A of

21 title IV,’’.

22 (8) Section 1136 of such Act (42 U.S.C.

23 1320b–6) is hereby repealed.

24 (9) Section 1137 of such Act (42 U.S.C.

25 1320b–7) is amended—
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1 (A) in subsection (b), by striking para2 graph (1) and inserting the following:

3 ‘‘(1) any State program funded under part A of

4 title IV of this Act;’’; and

5 (B) in subsection (d)(1)(B)—

6 (i) by striking ‘‘In this subsection—’’

7 and all that follows through ‘‘(ii) in’’ and

8 inserting ‘‘In this subsection, in’’; and

9 (ii) by redesignating subclauses (I),

10 (II), and (III) as clauses (i), (ii), and (iii);

11 and

12 (iii) by moving such redesignated ma13 terial 2 ems to the left.

14 (f) AMENDMENT TO TITLE XIV.—Section

15 1402(a)(7) of such Act (42 U.S.C. 1352(a)(7)) is amend16 ed by striking ‘‘aid to families with dependent children

17 under the State plan approved under section 402 of this

18 Act’’ and inserting ‘‘assistance under a State program

19 funded under part A of title IV’’.

20 (g) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

21 RESPECT TO THE TERRITORIES.—Section 1602(a)(11) of

22 such Act, as in effect without regard to the amendment

23 made by section 301 of the Social Security Amendments

24 of 1972, (42 U.S.C. 1382 note) is amended by striking
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1 ‘‘aid under the State plan approved’’ and inserting ‘‘assist2 ance under a State program funded’’.

3 (h) AMENDMENT TO TITLE XVI AS IN EFFECT WITH

4 RESPECT TO THE STATES.—Section 1611(c)(5)(A) of

5 such Act (42 U.S.C. 1382(c)(5)(A)) is amended to read

6 as follows: ‘‘(A) a State program funded under part A of

7 title IV,’’.

8 SEC. 14105. CONFORMING AMENDMENTS TO OTHER LAWS.

9 (a) Subsection (b) of section 508 of the Unemploy10 ment Compensation Amendments of 1976 (42 U.S.C.

11 603a) is amended to read as follows:

12 ‘‘(b) PROVISION FOR REIMBURSEMENT OF EX13 PENSES.—For purposes of section 455 of the Social Secu14 rity Act, expenses incurred to reimburse State employment

15 offices for furnishing information requested of such of16 fices—

17 ‘‘(1) pursuant to the third sentence of section

18 3(a) of the Act entitled ‘An Act to provide for the

19 establishment of a national employment system and

20 for cooperation with the States in the promotion of

21 such system, and for other purposes’, approved June

22 6, 1933 (29 U.S.C. 49b(a)),

23 ‘‘(2) by a State or local agency charged with

24 the duty of carrying a State plan for child support
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1 approved under part D of title IV of the Social Se2 curity Act,

3 shall be considered to constitute expenses incurred in the

4 administration of such State plan.’’.

5 (b) Paragraph (9) of section 51(d) of the Internal

6 Revenue Code of 1986 is amended by striking all that fol7 lows ‘‘agency as’’ and inserting ‘‘being eligible for financial

8 assistance under part A of title IV of the Social Security

9 Act and as having continually received such financial as10 sistance during the 90-day period which immediately pre11 cedes the date on which such individual is hired by the

12 employer.’’

13 (c) Section 9121 of the Omnibus Budget Reconcili14 ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.

15 (d) Section 9122 of the Omnibus Budget Reconcili16 ation Act of 1987 (42 U.S.C. 602 note) is hereby repealed.

17 (e) Section 221 of the Housing and Urban-Rural Re18 covery Act of 1983 (42 U.S.C. 602 note), relating to treat19 ment under AFDC of certain rental payments for federally

20 assisted housing, is hereby repealed.

21 (f) Section 159 of the Tax Equity and Fiscal Respon22 sibility Act of 1982 (42 U.S.C. 602 note) is hereby re23 pealed.
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1 (g) Section 202(d) of the Social Security Amend2 ments of 1967 (81 Stat. 882; 42 U.S.C. 602 note) is here3 by repealed.

4 (h) Section 233 of the Social Security Act Amend5 ments of 1994 (42 U.S.C. 602 note) is hereby repealed.

6 (i) Section 903 of the Stewart B. McKinney Home7 less Assistance Amendments Act of 1988 (42 U.S.C.

8 11381 note), relating to demonstration projects to reduce

9 number of AFDC families in welfare hotels, is amended—

10 (1) in subsection (a), by striking ‘‘aid to fami11 lies with dependent children under a State plan ap12 proved’’ and inserting ‘‘assistance under a State pro13 gram funded’’; and

14 (2) in subsection (c), by striking ‘‘aid to fami15 lies with dependent children in the State under a

16 State plan approved’’ and inserting ‘‘assistance in

17 the State under a State program funded’’.

18 SEC. 14106. CONTINUED APPLICATION OF CURRENT STAND19 ARDS UNDER MEDICAID PROGRAM.

20 (a) IN GENERAL.—Title XIX of the Social Security

21 Act is amended—

22 (1) in section 1931, by inserting ‘‘subject to

23 section 1931(a),’’ after ‘‘under this title,’’ and by re24 designating such section as section 1932; and
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1 (2) by inserting after section 1930 the following

2 new section:

3 ‘‘CONTINUED APPLICATION OF AFDC STANDARDS

4 ‘‘SEC. 1931. (a) For purposes of applying this title

5 on and after October 1, 1995, with respect to a State—

6 ‘‘(1) except as provided in paragraph (2), any

7 reference in this title (or other provision of law in

8 relation to the operation of this title) to a provision

9 of part A of title IV of this Act, or a State plan

10 under such part, shall be considered a reference to

11 such provision or plan as in effect as of March 7,

12 1995, with respect to the State and eligibility for

13 medical assistance under this title shall be deter14 mined as if such provision or plan (as in effect as

15 of such date) had remained in effect on and after

16 October 1, 1995; and

17 ‘‘(2) any reference in section 1902(a)(5) or

18 1902(a)(55) to a State plan approved under part A

19 of title IV shall be deemed a reference to a State

20 program funded under such part (as in effect on and

21 after October 1, 1995).

22 ‘‘(b) In the case of a waiver of a provision of part

23 A of title IV in effect with respect to a State as of March

24 7, 1995, if the waiver affects eligibility of individuals for

25 medical assistance under this title, such waiver may con26 tinue to be applied, at the option of the State, in relation
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1 to this title after the date the waiver would otherwise

2 expire.’’

3 (b) PLAN AMENDMENT.—Section 1902(a) of such

4 Act (42 U.S.C. 1396a(a)) is amended—

5 (1) by striking ‘‘and’’ at the end of paragraph

6 (61),

7 (2) by striking the period at the end of para8 graph (62) and inserting ‘‘; and’’, and

9 (3) by inserting after paragraph (62) the fol10 lowing new paragraph:

11 ‘‘(63) provide for continuing to administer eligi12 bility standards with respect to individuals who are

13 (or seek to be) eligible for medical assistance based

14 on the application of section 1931.’’.

15 (c) CONFORMING AMENDMENTS.—(1) Section

16 1902(c) of such Act (42 U.S.C. 1396a(c)) is amended by

17 striking ‘‘if—’’ and all that follows and inserting the fol18 lowing: ‘‘if the State requires individuals described in sub19 section (l)(1) to apply for assistance under the State pro20 gram funded under part A of title IV as a condition of

21 applying for or receiving medical assistance under this

22 title.’’.

23 (2) Section 1903(i) of such Act (42 U.S.C. 1396b(i))

24 is amended by striking paragraph (9).
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to medical assistance furnished for

3 calendar quarters beginning on or after October 1, 1995.

4 SEC. 14107. EFFECTIVE DATE.

5 (a) IN GENERAL.—Except as otherwise provided in

6 this subtitle, this subtitle and the amendments made by

7 this subtitle shall take effect on October 1, 1995.

8 (b) DELAYED APPLICABILITY OF AUTHORITY TO

9 TEMPORARILY REDUCE ASSISTANCE FOR CERTAIN FAMI10 LIES WHICH INCLUDE A CHILD WHOSE PATERNITY IS

11 NOT ESTABLISHED.—Section 405(a)(9) of the Social Se12 curity Act, as added by the amendment made by section

13 14101 of this Act, shall not apply to individuals who, im14 mediately before the effective date of this subtitle, are re15 cipients of aid under a State plan approved under part

16 A of title IV of the Social Security Act, until the end of

17 the 1-year (or, at the option of the State, 2-year) period

18 that begins with such effective date.

19 (c) TRANSITION RULE.—The amendments made by

20 this subtitle shall not apply with respect to—

21 (1) powers, duties, functions, rights, claims,

22 penalties, or obligations applicable to aid or services

23 provided before the effective date of this subtitle

24 under the provisions amended; and
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1 (2) administrative actions and proceedings com2 menced before such date, or authorized before such

3 date to be commenced, under such provisions.

4 Subtitle B—Child Protection Block

5 Grant Program

6 SEC. 14201. ESTABLISHMENT OF PROGRAM.

7 Part B of title IV of the Social Security Act (42

8 U.S.C. 620–635) is amended to read as follows:

9 ‘‘PART B—BLOCK GRANTS TO STATES FOR THE

10 PROTECTION OF CHILDREN

11 ‘‘SEC. 421. PURPOSE.

12 ‘‘The purpose of this part is to enable eligible States

13 to carry out a child protection program to—

14 ‘‘(1) identify and assist families at risk of abus15 ing or neglecting their children;

16 ‘‘(2) operate a system for receiving reports of

17 abuse or neglect of children;

18 ‘‘(3) investigate families reported to abuse or

19 neglect their children;

20 ‘‘(4) provide support, treatment, and family

21 preservation services to families which are, or are at

22 risk of, abusing or neglecting their children;

23 ‘‘(5) support children who must be removed

24 from or who cannot live with their families;
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1 ‘‘(6) make timely decisions about permanent liv2 ing arrangements for children who must be removed

3 from or who cannot live with their families; and

4 ‘‘(7) provide for continuing evaluation and im5 provement of child protection laws, regulations, and

6 services.

7 ‘‘SEC. 422. ELIGIBLE STATES.

8 ‘‘(a) IN GENERAL.—As used in this part, the term

9 ‘eligible State’ means, with respect to a fiscal year, a State

10 that, during the 3-year period immediately preceding the

11 fiscal year, has submitted to the Secretary a plan that in12 cludes the following:

13 ‘‘(1) OUTLINE OF CHILD PROTECTION PRO14 GRAM.—A written document that outlines the activi15 ties the State intends to conduct to achieve the pur16 pose of this part, including the procedures to be

17 used for—

18 ‘‘(A) receiving reports of child abuse or

19 neglect;

20 ‘‘(B) investigating such reports;

21 ‘‘(C) protecting children in families in

22 which child abuse or neglect is found to have

23 occurred;

24 ‘‘(D) removing children from dangerous

25 settings;
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1 ‘‘(E) protecting children in foster care;

2 ‘‘(F) promoting timely adoptions;

3 ‘‘(G) protecting the rights of families,

4 using adult relatives as the preferred placement

5 for children separated from their parents if

6 such relatives meet all State child protection

7 standards;

8 ‘‘(H) preventing child abuse and neglect;

9 and

10 ‘‘(I) establishing and responding to citizen

11 review panels under section 425.

12 ‘‘(2) CERTIFICATION OF STATE LAW REQUIRING

13 THE REPORTING OF CHILD ABUSE AND NEGLECT.—

14 A certification that the State has in effect laws that

15 require public officials and other professionals to re16 port actual or suspected instances of child abuse or

17 neglect.

18 ‘‘(3) CERTIFICATION OF STATE PROGRAM TO

19 INVESTIGATE CHILD ABUSE AND NEGLECT CASES.—

20 A certification that the State has in effect a pro21 gram to investigate child abuse and neglect cases.

22 ‘‘(4) CERTIFICATION OF STATE PROCEDURES

23 FOR REMOVAL AND PLACEMENT OF ABUSED OR NE24 GLECTED CHILDREN.—A certification that the State
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1 has in effect procedures for removal from families

2 and placement of abused or neglected children.

3 ‘‘(5) CERTIFICATION OF STATE PROCEDURES

4 FOR DEVELOPING AND REVIEWING WRITTEN PLANS

5 FOR PERMANENT PLACEMENT OF REMOVED CHIL6 DREN.—A certification that the State has in effect

7 procedures for ensuring that a written plan is pre8 pared for children who have been removed from their

9 families, which specifies the goal for achieving a per10 manent placement for the child in a timely fashion,

11 for ensuring that the written plan is reviewed every

12 6 months, and for ensuring that information about

13 such children is collected regularly and recorded in

14 case records, and a description of such procedures.

15 ‘‘(6) CERTIFICATION THAT THE STATE WILL

16 CONTINUE TO HONOR ADOPTION ASSISTANCE

17 AGREEMENTS.—A certification that the State will

18 honor any adoption assistance agreement (as defined

19 in section 475(3), as in effect immediately before the

20 effective date of this part) entered into by an agency

21 of the State, that is in effect as of such effective

22 date.

23 ‘‘(7) CERTIFICATION OF STATE PROGRAM TO

24 PROVIDE INDEPENDENT LIVING SERVICES.—A cer25 tification that the State has in effect a program to
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1 provide independent living services to individuals in

2 the child protection program of the State who have

3 attained 16 years of age but have not attained 20

4 (or, at the option of the State, 22) years of age, and

5 who do not have a family to which to be returned

6 for assistance in making the transition to self-suffi7 cient adulthood.

8 ‘‘(8) CERTIFICATION OF STATE PROCEDURES

9 TO RESPOND TO REPORTING OF MEDICAL NEGLECT

10 OF DISABLED INFANTS.—

11 ‘‘(A) IN GENERAL.—A certification that

12 the State has in place for the purpose of re13 sponding to the reporting of medical neglect of

14 infants (including instances of withholding of

15 medically indicated treatment from disabled in16 fants with life-threatening conditions), proce17 dures or programs, or both (within the State

18 child protective services system), to provide

19 for—

20 ‘‘(i) coordination and consultation

21 with individuals designated by and within

22 appropriate health-care facilities;

23 ‘‘(ii) prompt notification by individ24 uals designated by and within appropriate

25 health-care facilities of cases of suspected
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1 medical neglect (including instances of

2 withholding of medically indicated treat3 ment from disabled infants with life-threat4 ening conditions); and

5 ‘‘(iii) authority, under State law, for

6 the State child protective service to pursue

7 any legal remedies, including the authority

8 to initiate legal proceedings in a court of

9 competent jurisdiction, as may be nec10 essary to prevent the withholding of medi11 cally indicated treatment from disabled in12 fants with life-threatening conditions.

13 ‘‘(B) WITHHOLDING OF MEDICALLY INDI14 CATED TREATMENT.—As used in subparagraph

15 (A), the term ‘withholding of medically indi16 cated treatment’ means the failure to respond

17 to the infant’s life-threatening conditions by

18 providing treatment (including appropriate nu19 trition, hydration, and medication) which, in the

20 treating physician’s or physicians’ reasonable

21 medical judgment, will be most likely to be ef22 fective in ameliorating or correcting all such

23 conditions, except that such term does not in24 clude the failure to provide treatment (other

25 than appropriate nutrition, hydration, or medi-
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1 cation) to an infant when, in the treating physi2 cian’s or physicians’ reasonable medical judg3 ment—

4 ‘‘(i) the infant is chronically and irre5 versibly comatose;

6 ‘‘(ii) the provision of such treatment

7 would—

8 ‘‘(I) merely prolong dying;

9 ‘‘(II) not be effective in amelio10 rating or correcting all of the infant’s

11 life-threatening conditions; or

12 ‘‘(III) otherwise be futile in

13 terms of the survival of the infant; or

14 ‘‘(iii) the provision of such treatment

15 would be virtually futile in terms of the

16 survival of the infant and the treatment it17 self under such circumstances would be in18 humane.

19 ‘‘(9) IDENTIFICATION OF CHILD PROTECTION

20 GOALS.—The quantitative goals of the State child

21 protection program.

22 ‘‘(b) DETERMINATIONS.—The Secretary shall deter23 mine whether a plan submitted pursuant to subsection (a)

24 contains the material required by subsection (a). The Sec25 retary may not require a State to include in such a plan
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1 any material not described in subsection (a), and may not

2 review the adequacy of State procedures. The Secretary

3 may not require a State to alter its child protection law

4 regarding determination of the adequacy, type and timing

5 of health care (whether medical, non-medical or spiritual).

6 ‘‘SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.

7 ‘‘(a) ENTITLEMENT.—

8 ‘‘(1) IN GENERAL.—Each eligible State shall be

9 entitled to receive from the Secretary for each fiscal

10 year specified in subsection (b)(1) a grant in an

11 amount equal to the State share of the child protec12 tion amount for the fiscal year.

13 ‘‘(2) ADDITIONAL GRANT.—

14 ‘‘(A) IN GENERAL.—In addition to a grant

15 under paragraph (1) of this subsection, the Sec16 retary shall pay to each eligible State for each

17 fiscal year specified in subsection (b)(1) an

18 amount equal to the State share of the amount

19 (if any) appropriated pursuant to subparagraph

20 (B) of this paragraph for the fiscal year.

21 ‘‘(B) LIMITATION ON AUTHORIZATION OF

22 APPROPRIATIONS.—For grants under subpara23 graph (A), there are authorized to be appro24 priated to the Secretary an amount not to ex-
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1 ceed $486,000,000 for each fiscal year specified

2 in subsection (b)(1).

3 ‘‘(b) DEFINITIONS.—As used in this section:

4 ‘‘(1) CHILD PROTECTION AMOUNT.—The term

5 ‘child protection amount’ means—

6 ‘‘(A) $3,930,000,000 for fiscal year 1996;

7 ‘‘(B) $4,195,000,000 for fiscal year 1997;

8 ‘‘(C) $4,507,000,000 for fiscal year 1998;

9 ‘‘(D) $4,767,000,000 for fiscal year 1999;

10 and

11 ‘‘(E) $5,071,000,000 for fiscal year 2000.

12 ‘‘(2) STATE SHARE.—

13 ‘‘(A) IN GENERAL.—The term ‘State

14 share’ means the qualified child protection ex15 penses of the State divided by the sum of the

16 qualified child protection expenses of all of the

17 States.

18 ‘‘(B) QUALIFIED CHILD PROTECTION EX19 PENSES.—The term ‘qualified child protection

20 expenses’ means, with respect to a State the

21 greater of—

‘‘(i) 1 22 ⁄3 of the total amount of obliga23 tions to the State under the provisions of

24 law specified in subparagraph (C) for fiscal

25 years 1992, 1993, and 1994; or
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1 ‘‘(ii) the total amount of obligations to

2 the State under such provisions of law for

3 fiscal year 1994.

4 ‘‘(C) PROVISIONS OF LAW.—The provisions

5 of law specified in this subparagraph are the

6 following (as in effect immediately before the

7 effective date of this part):

8 ‘‘(i) Section 474(a) (other than sub9 paragraphs (C) and (D) of paragraph (3))

10 of this Act.

11 ‘‘(ii) Section 304 of the Family Vio12 lence Prevention and Services Act.

13 ‘‘(iii) Section 107(a) of the Child

14 Abuse Prevention and Treatment Act.

15 ‘‘(iv) Section 201(d) of the Child

16 Abuse Prevention and Treatment Act.

17 ‘‘(v) Section 423 of this Act.

18 ‘‘(3) STATE.—The term ‘State’ includes the

19 several States, the District of Columbia, the Com20 monwealth of Puerto Rico, the United States Virgin

21 Islands, Guam, and American Samoa.

22 ‘‘(c) USE OF GRANT.—

23 ‘‘(1) IN GENERAL.—A State to which a grant

24 is made under this section may use the grant in any

25 manner that the State deems appropriate to accom-
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1 plish the purpose of this part, including setting up

2 abuse and neglect reporting systems, abuse and ne3 glect prevention, family preservation, foster care,

4 adoption, program administration, and training.

5 ‘‘(2) AUTHORITY TO USE PORTION OF GRANT

6 FOR OTHER PURPOSES.—

7 ‘‘(A) IN GENERAL.—A State may use not

8 more than 30 percent of the amount of the

9 grant made to the State under this section for

10 fiscal year 1998 or a succeeding fiscal year to

11 carry out a State program pursuant to any or

12 all of the following provisions of law:

13 ‘‘(i) Part A of this title.

14 ‘‘(ii) Title XX of this Act.

15 ‘‘(iii) The Child Care and Develop16 ment Block Grant Act of 1990.

17 ‘‘(iv) Any provision of law, enacted

18 into law during the 104th Congress, under

19 which grants are made to States for food

20 and nutrition or employment and training.

21 ‘‘(B) APPLICABLE RULES.—Any amount

22 paid to the State under this part that is used

23 to carry out a State program pursuant to a pro24 vision of law specified in subparagraph (A)

25 shall not be subject to the requirements of this
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1 part, but shall be subject to the requirements

2 that apply to Federal funds provided directly

3 under the provision of law to carry out the pro4 gram.

5 ‘‘(3) TIMING OF EXPENDITURES.—A State to

6 which a grant is made under this section for a fiscal

7 year shall expend the total amount of the grant not

8 later than the end of the immediately succeeding fis9 cal year.

10 ‘‘(4) RULE OF INTERPRETATION.—This part

11 shall not be interpreted to prohibit short- and long12 term foster care facilities operated for profit from

13 receiving funds provided under this part.

14 ‘‘(d) TIMING OF PAYMENTS.—The Secretary shall

15 pay each eligible State the amount of the grant payable

16 to the State under this section in quarterly installments.

17 ‘‘(e) PENALTIES.—

18 ‘‘(1) FOR USE OF GRANT IN VIOLATION OF

19 THIS PART.—

20 ‘‘(A) IN GENERAL.—If an audit conducted

21 pursuant to chapter 75 of title 31, United

22 States Code, finds that an amount paid to a

23 State under this section for a fiscal year has

24 been used in violation of this part, then the

25 Secretary shall reduce the amount of the grant
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1 that would (in the absence of this subsection)

2 be payable to the State under this section for

3 the immediately succeeding fiscal year by the

4 amount so used.

5 ‘‘(B) LIMITATION.—In carrying out sub6 paragraph (A), the Secretary shall not reduce

7 any quarterly payment by more than 25 per8 cent.

9 ‘‘(C) CARRYFORWARD OF UNRECOVERED

10 PENALTY.—To the extent that subparagraph

11 (B) prevents the Secretary from recovering dur12 ing a fiscal year the full amount of a penalty

13 imposed on a State under subparagraph (A) for

14 a prior fiscal year, the Secretary shall apply

15 subparagraph (A) to the grant otherwise pay16 able to the State under this section for the im17 mediately succeeding fiscal year.

18 ‘‘(2) FOR FAILURE TO MAINTAIN EFFORT.—If

19 an audit conducted pursuant to chapter 75 of title

20 31, United States Code, finds that the amount ex21 pended by a State (other than from amounts pro22 vided by the Federal Government) during fiscal year

23 1996 or 1997 to carry out the State program funded

24 under this part is less than the total amount ex25 pended by the State (other than from amounts pro-
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1 vided by the Federal Government) during fiscal year

2 1995 under parts B and E of this title, then the

3 Secretary shall reduce the amount of the grant that

4 would (in the absence of this subsection) be payable

5 to the State under this section for the immediately

6 succeeding fiscal year by the amount of the dif7 ference.

8 ‘‘(3) FOR FAILURE TO SUBMIT REQUIRED RE9 PORT.—

10 ‘‘(A) IN GENERAL.—The Secretary shall

11 reduce by 3 percent the amount of the grant

12 that would (in the absence of this subsection)

13 be payable to a State under this section for a

14 fiscal year if the Secretary determines that the

15 State has not submitted the report required by

16 section 427(b) for the immediately preceding

17 fiscal year, within 6 months after the end of the

18 immediately preceding fiscal year.

19 ‘‘(B) RESCISSION OF PENALTY.—The Sec20 retary shall rescind a penalty imposed on a

21 State under subparagraph (A) with respect to a

22 report for a fiscal year if the State submits the

23 report before the end of the immediately suc24 ceeding fiscal year.
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1 ‘‘(f) LIMITATION ON FEDERAL AUTHORITY.—Except

2 as expressly provided in this part, the Secretary may not

3 regulate the conduct of States under this part or enforce

4 any provision of this part.

5 ‘‘SEC. 424. CHILD PROTECTION STANDARDS.

6 ‘‘(a) IN GENERAL.—Each State to which a grant is

7 made under section 423 shall operate a child protection

8 program in accordance with the following standards in

9 order to assure the protection of children:

10 ‘‘(1) The primary standard by which a State

11 child welfare system shall be judged is the protection

12 of children.

13 ‘‘(2) Each State shall investigate reports of

14 abuse and neglect promptly.

15 ‘‘(3) Children removed from their homes shall

16 have a permanency plan and a dispositional hearing

17 by a court or a court-appointed body within 3

18 months after a fact-finding hearing.

19 ‘‘(4) All child protection cases in which the

20 child is placed outside the home shall be reviewed

21 every 6 months unless the child is in a long-term

22 placement.

23 ‘‘(b) PLACEMENT OF CHILDREN WITH REL24 ATIVES.—A State to which a grant is made under this

25 part may consider—
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1 ‘‘(1) establishing a new type of foster care

2 placement, which could be considered a permanent

3 placement, for children who are separated from their

4 parents (in this subsection referred to as ‘kinship

5 care’) under which—

6 ‘‘(A) adult relatives of such children would

7 be the preferred placement option if such rel8 atives meet all relevant child protection stand9 ards established by the State;

10 ‘‘(B) the State would make a needs-based

11 payment and provide supportive services, as ap12 propriate, with respect to children placed in a

13 kinship care arrangement; and

14 ‘‘(2) in placing children for adoption, giving

15 preference to adult relatives who meet applicable

16 adoption standards (including those acting as foster

17 parents of such children).

18 ‘‘SEC. 425. CITIZEN REVIEW PANELS.

19 ‘‘(a) ESTABLISHMENT.—Each State to which a grant

20 is made under section 423 shall establish at least 3 citizen

21 review panels.

22 ‘‘(b) COMPOSITION.—Each panel established under

23 subsection (a) shall be broadly representative of the com24 munity from which drawn.
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1 ‘‘(c) FREQUENCY OF MEETINGS.—Each panel estab2 lished under subsection (a) shall meet not less frequently

3 than quarterly.

4 ‘‘(d) DUTIES.—

5 ‘‘(1) IN GENERAL.—Each panel established

6 under subsection (a) shall, by examining specific

7 cases, determine the extent to which the State and

8 local agencies responsible for carrying out activities

9 under this part are doing so in accordance with the

10 State plan, with the child protection standards set

11 forth in section 424, and with any other criteria that

12 the panel considers important to ensure the protec13 tion of children.

14 ‘‘(2) CONFIDENTIALITY.—The members and

15 staff of any panel established under subsection (a)

16 shall not disclose to any person or government any

17 information about any specific child protection case

18 with respect to which the panel is provided informa19 tion.

20 ‘‘(e) STATE ASSISTANCE.—Each State that estab21 lishes a panel under subsection (a) shall afford the panel

22 access to any information on any case that the panel de23 sires to review, and shall provide the panel with staff as24 sistance in performing its duties.
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1 ‘‘(f) REPORTS.—Each panel established under sub2 section (a) shall make a public report of its activities after

3 each meeting.

4 ‘‘SEC. 426. CLEARINGHOUSE AND HOTLINE ON MISSING

5 AND RUNAWAY CHILDREN.

6 ‘‘(a) IN GENERAL.—The Attorney General of the

7 United States shall establish and operate by contract a

8 clearinghouse of information on children who are missing

9 or have run away from home, including a 24-hour toll10 free telephone hotline which may be contacted for informa11 tion on such children.

12 ‘‘(b) LIMITATION ON AUTHORIZATION OF APPRO13 PRIATIONS.—To carry out subsection (a), there are au14 thorized to be appropriated to the Attorney General of the

15 United States not to exceed $7,000,000 for each fiscal

16 year.

17 ‘‘SEC. 427. DATA COLLECTION AND REPORTING.

18 ‘‘(a) ANNUAL REPORTS ON STATE CHILD WELFARE

19 GOALS.—On the date that is 3 years after the effective

20 date of this part and annually thereafter, each State to

21 which a grant is made under section 423 shall submit to

22 the Secretary a report that contains quantitative informa23 tion on the extent to which the State is making progress

24 toward achieving the goals of the State child protection

25 program.
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1 ‘‘(b) ANNUAL STATE DATA REPORTS.—Each State

2 to which a grant is made under section 423 shall annually

3 submit to the Secretary of Health and Human Services

4 a report that includes the following:

5 ‘‘(1) The number of children who were reported

6 to the State during the year as abused or neglected.

7 ‘‘(2) Of the number of children described in

8 paragraph (1), the number with respect to whom

9 such reports were substantiated.

10 ‘‘(3) Of the number of children described in

11 paragraph (2)—

12 ‘‘(A) the number that did not receive serv13 ices during the year under the State program

14 funded under this part;

15 ‘‘(B) the number that received services

16 during the year under the State program fund17 ed under this part or an equivalent State pro18 gram; and

19 ‘‘(C) the number that were removed from

20 their families during the year.

21 ‘‘(4) The number of families that received pre22 ventive services from the State during the year.

23 ‘‘(5) The number of children who entered foster

24 care under the responsibility of the State during the

25 year.
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1 ‘‘(6) The number of children in foster care

2 under the responsibility of the State who exited from

3 foster care during the year.

4 ‘‘(7) The types of foster care placements made

5 by the State during the year, and the average

6 monthly number of children in each type of place7 ment.

8 ‘‘(8) The average length of the foster care

9 placements made by the State during the year.

10 ‘‘(9) The age, ethnicity, gender, and family in11 come of the children placed in foster care under the

12 responsibility of the State during the year.

13 ‘‘(10) The number of children in foster care

14 under the responsibility of the State with respect to

15 whom the State has the goal of adoption.

16 ‘‘(11) The number of children in foster care

17 under the responsibility of the State who were freed

18 for adoption during the year.

19 ‘‘(12) The number of children in foster care

20 under the responsibility of the State whose adoptions

21 were finalized during the year.

22 ‘‘(13) The number of disrupted adoptions in the

23 State during the year.

24 ‘‘(14) Quantitative measurements showing

25 whether the State is making progress toward the
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1 child protection goals identified by the State under

2 section 422(a)(9).

3 ‘‘(15) The number of infants abandoned in the

4 State during the year, and the number of such in5 fants who were legally adopted during the year and

6 the length of time between the discovery of the aban7 donment and such adoption.

8 ‘‘(16) The number of children who died during

9 the year while in foster care under the responsibility

10 of the State.

11 ‘‘(17) The number of deaths in the State dur12 ing the year resulting from child abuse or neglect.

13 ‘‘(18) The number of children served by the

14 independent living program of the State.

15 ‘‘(19) Any other information which the Sec16 retary and a majority of the States agree is appro17 priate to collect for purposes of this part.

18 ‘‘(20) The response of the State to the findings

19 and recommendations of the citizen review panels es20 tablished by the State pursuant to section 425.

21 ‘‘(c) AUTHORITY OF STATES TO USE ESTIMATES.—

22 A State may comply with a requirement to provide precise

23 numerical information described in subsection (b) by sub24 mitting an estimate which is obtained through the use of

25 scientifically acceptable sampling methods.
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1 ‘‘(d) ANNUAL REPORT BY THE SECRETARY.—Within

2 6 months after the end of each fiscal year, the Secretary

3 shall prepare a report based on information provided by

4 the States for the fiscal year pursuant to subsection (b),

5 and shall make the report and such information available

6 to the Congress and the public.

7 ‘‘(e) SCOPE OF STATE PROGRAM FUNDED UNDER

8 THIS PART.—As used in subsection (b), the term ‘State

9 program funded under this part’ includes any equivalent

10 State program.

11 ‘‘SEC. 428. RESEARCH AND TRAINING.

12 ‘‘(a) IN GENERAL.—The Secretary shall conduct re13 search and training in child welfare.

14 ‘‘(b) LIMITATION ON AUTHORIZATION OF APPRO15 PRIATIONS.—To carry out subsection (a), there are au16 thorized to be appropriated to the Secretary not to exceed

17 $10,000,000 for each fiscal year.

18 ‘‘SEC. 429. NATIONAL RANDOM SAMPLE STUDY OF CHILD

19 WELFARE.

20 ‘‘(a) IN GENERAL.—The Secretary shall conduct a

21 national study based on random samples of children who

22 are at risk of child abuse or neglect, or are determined

23 by States to have been abused or neglected.

24 ‘‘(b) REQUIREMENTS.—The study required by sub25 section (a) shall—
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•HR 1923 IH

1 ‘‘(1) have a longitudinal component; and

2 ‘‘(2) yield data reliable at the State level for as

3 many States as the Secretary determines is feasible.

4 ‘‘(c) PREFERRED CONTENTS.—In conducting the

5 study required by subsection (a), the Secretary should—

6 ‘‘(1) collect data on the child protection pro7 grams of different small States or (different groups

8 of such States) in different years to yield an occa9 sional picture of the child protection programs of

10 such States;

11 ‘‘(2) carefully consider selecting the sample

12 from cases of confirmed abuse or neglect; and

13 ‘‘(3) follow each case for several years while ob14 taining information on, among other things—

15 ‘‘(A) the type of abuse or neglect involved;

16 ‘‘(B) the frequency of contact with State

17 or local agencies;

18 ‘‘(C) whether the child involved has been

19 separated from the family, and, if so, under

20 what circumstances;

21 ‘‘(D) the number, type, and characteristics

22 of out-of-home placements of the child; and

23 ‘‘(E) the average duration of each place24 ment.

25 ‘‘(d) REPORTS.—
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1 ‘‘(1) IN GENERAL.—From time to time, the

2 Secretary shall prepare reports summarizing the re3 sults of the study required by subsection (a), and

4 should include in such reports a comparison of the

5 results of the study with the information reported by

6 States under section 427.

7 ‘‘(2) AVAILABILITY.—The Secretary shall make

8 available to the public any report prepared under

9 paragraph (1), in writing or in the form of an elec10 tronic data tape.

11 ‘‘(3) AUTHORITY TO CHARGE FEE.—The Sec12 retary may charge and collect a fee for the furnish13 ing of reports under paragraph (2).

14 ‘‘(e) FUNDING.—Out of any money in the Treasury

15 of the United States not otherwise appropriated, the Sec16 retary of the Treasury shall pay to the Secretary of Health

17 and Human Services $6,000,000 for each of fiscal years

18 1996 through 2000 to carry out this section.

19 ‘‘SEC. 430. REMOVAL OF BARRIERS TO INTERETHNIC ADOP20 TION.

21 ‘‘(a) PURPOSE.—The purpose of this section is to de22 crease the length of time that children wait to be adopted

23 and to prevent discrimination in the placement of children

24 on the basis of race, color, or national origin.

25 ‘‘(b) MULTIETHNIC PLACEMENTS.—
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•HR 1923 IH

1 ‘‘(1) PROHIBITION.—A State or other entity

2 that receives funds from the Federal Government

3 and is involved in adoption or foster care placements

4 may not—

5 ‘‘(A) deny to any person the opportunity to

6 become an adoptive or a foster parent, on the

7 basis of the race, color, or national origin of the

8 person, or of the child, involved; or

9 ‘‘(B) delay or deny the placement of a

10 child for adoption or into foster care, or other11 wise discriminate in making a placement deci12 sion, on the basis of the race, color, or national

13 origin of the adoptive or foster parent, or the

14 child, involved.

15 ‘‘(2) PENALTIES.—

16 ‘‘(A) STATE VIOLATORS.—A State that

17 violates paragraph (1) during a period shall

18 remit to the Secretary all funds that were paid

19 to the State under this part during the period.

20 ‘‘(B) PRIVATE VIOLATORS.—Any other en21 tity that violates paragraph (1) during a period

22 shall remit to the Secretary all funds that were

23 paid to the entity during the period by a State

24 from funds provided under this part.

25 ‘‘(3) PRIVATE CAUSE OF ACTION.—
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1 ‘‘(A) IN GENERAL.—Any individual who is

2 aggrieved by a violation of paragraph (1) by a

3 State or other entity may bring an action seek4 ing relief in any United States district court.

5 ‘‘(B) STATUTE OF LIMITATIONS.—An ac6 tion under this paragraph may not be brought

7 more than 2 years after the date the alleged

8 violation occurred.’’.

9 SEC. 14202. CONFORMING AMENDMENTS.

10 (a) AMENDMENTS TO PART D OF TITLE IV OF THE

11 SOCIAL SECURITY ACT.—

12 (1) Section 452(a)(10)(C) of the Social Security

13 Act (42 U.S.C. 652(a)(10)(C)), as amended by sec14 tion 14104(b)(2)(C) of this Act, is amended—

15 (A) by striking ‘‘(or foster care mainte16 nance payments under part E)’’ and inserting

17 ‘‘or cash payments under a State program

18 funded under part B’’; and

19 (B) by striking ‘‘or 471(a)(17)’’.

20 (2) Section 452(g)(2)(A) of such Act (42

21 U.S.C. 652(g)(2)(A)) is amended—

22 (A) by striking ‘‘or E’’ the 1st place such

23 term appears and inserting ‘‘or benefits or serv24 ices are being provided under the State pro25 gram funded under part B’’; and
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•HR 1923 IH

1 (B) by striking ‘‘or E’’ the 2nd place such

2 term appears and inserting ‘‘or benefits or serv3 ices were being provided under the State pro4 gram funded under part B’’.

5 (3) Section 456(a)(1) of such Act (42 U.S.C.

6 656(a)(1)) is amended by striking ‘‘foster care main7 tenance payments’’ and inserting ‘‘benefits or serv8 ices under a State program funded under part B’’.

9 (4) Section 466(a)(3)(B) of such Act (42

10 U.S.C. 666(a)(3)(B)), as amended by section

11 14104(b)(13) of this Act, is amended by striking ‘‘or

12 471(a)(17)’’.

13 (b) REPEAL OF PART E OF TITLE IV OF THE SOCIAL

14 SECURITY ACT.—Part E of title IV of such Act (42

15 U.S.C. 671–679) is hereby repealed.

16 (c) AMENDMENT TO TITLE XVI OF THE SOCIAL SE17 CURITY ACT AS IN EFFECT WITH RESPECT TO THE

18 STATES.—Section 1611(c)(5)(B) of such Act (42 U.S.C.

19 1382(c)(5)(B)) is amended to read as follows: ‘‘(B) the

20 State program funded under part B of title IV,’’.

21 (d) REPEAL OF SECTION 13712 OF THE OMNIBUS

22 BUDGET RECONCILIATION ACT OF 1993.—Section 13712

23 of the Omnibus Budget Reconciliation Act of 1993 (42

24 U.S.C. 670 note) is hereby repealed.
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•HR 1923 IH

1 (e) AMENDMENT TO SECTION 9442 OF THE OMNIBUS

2 BUDGET RECONCILIATION ACT OF 1986.—Section

3 9442(4) of the Omnibus Budget Reconciliation Act of

4 1986 (42 U.S.C. 679a(4)) is amended by inserting ‘‘(as

5 in effect before October 1, 1995)’’ after ‘‘Act’’.

6 (f) REPEAL OF SECTION 553 OF THE HOWARD M.

7 METZENBAUM MULTIETHNIC PLACEMENT ACT OF

8 1994.—Section 553 of the Howard M. Metzenbaum

9 Multiethnic Placement Act of 1994 (42 U.S.C. 5115a; 108

10 Stat. 4056) is hereby repealed.

11 (g) REPEAL OF SUBTITLE C OF TITLE XVII OF THE

12 VIOLENT CRIME CONTROL AND LAW ENFORCEMENT ACT

13 OF 1994.—Subtitle C of title XVII of the Violent Crime

14 Control and Law Enforcement Act of 1994 is hereby re15 pealed.

16 SEC. 14203. CONTINUED APPLICATION OF CURRENT STAND17 ARDS UNDER MEDICAID PROGRAM.

18 Section 1931 of the Social Security Act, as inserted

19 by section 14106(a)(2) of this Act, is amended—

20 (1) in subsection (a)(1)—

21 (A) by striking ‘‘part A of’’, and

22 (B) by striking ‘‘under such part’’ and in23 serting ‘‘under a part of such title’’; and

24 (2) in subsection (b), by striking ‘‘part A of’’.
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•HR 1923 IH

1 SEC. 14204. EFFECTIVE DATE.

2 (a) IN GENERAL.—this subtitle and the amendments

3 made by this subtitle shall take effect on October 1, 1995.

4 (b) TRANSITION RULE.—The amendments made by

5 this subtitle shall not apply with respect to—

6 (1) powers, duties, functions, rights, claims,

7 penalties, or obligations applicable to aid or services

8 provided before the effective date of this subtitle

9 under the provisions amended; and

10 (2) administrative actions and proceedings com11 menced before such date, or authorized before such

12 date to be commenced, under such provisions.

13 SEC. 14205. SENSE OF THE CONGRESS REGARDING TIMELY

14 ADOPTION OF CHILDREN.

15 It is the sense of the Congress that—

16 (1) too many children who wish to be adopted

17 are spending inordinate amounts of time in foster

18 care;

19 (2) there is an urgent need for States to in20 crease the number of waiting children being adopted

21 in a timely and lawful manner;

22 (3) studies have shown that States spend an ex23 cess of $15,000 each year on each special needs

24 child in foster care, and would save significant

25 amounts of money if they offered incentives to fami26 lies to adopt special needs children;
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•HR 1923 IH

1 (4) States should allocate sufficient funds under

2 this subtitle for adoption assistance and medical as3 sistance to encourage more families to adopt chil4 dren who otherwise would languish in the foster care

5 system for a period that many experts consider det6 rimental to their development;

7 (5) States should offer incentives for families

8 that adopt special needs children to make adoption

9 more affordable for middle-class families;

10 (6) when it is necessary for a State to remove

11 a child from the home of the child’s biological par12 ents, the State should strive—

13 (A) to provide the child with a single foster

14 care placement and a single coordinated case

15 team; and

16 (B) to conclude an adoption of the child,

17 when adoption is the goal of the child and the

18 State, within one year of the child’s placement

19 in foster care; and

20 (7) States should participate in local, regional,

21 or national programs to enable maximum visibility of

22 waiting children to potential parents. Such programs

23 should include a nationwide, interactive computer

24 network to disseminate information on children eligi-
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1 ble for adoption to help match them with families

2 around the country.

3 Subtitle C—Block Grants for Child

4 Care and for Nutrition Assistance

5 CHAPTER 1—CHILD CARE BLOCK GRANTS

6 SEC. 14301. AMENDMENTS TO THE CHILD CARE AND DE7 VELOPMENT BLOCK GRANT ACT OF 1990.

8 (a) GOALS.—Section 658A of the Child Care and De9 velopment Block Grant Act of 1990 (42 U.S.C. 9801 note)

10 is amended—

11 (1) in the heading of such section by inserting

12 ‘‘AND GOALS’’ after ‘‘TITLE’’,

13 (2) by inserting ‘‘(a) SHORT TITLE.—’’ before

14 ‘‘This’’, and

15 (3) by adding at the end the following:

16 ‘‘(b) GOALS.—The goals of this subchapter are—

17 ‘‘(1) to allow each State maximum flexibility in

18 developing child care programs and policies that best

19 suit the needs of children and parents within such

20 State;

21 ‘‘(2) to promote parental choice to empower

22 working parents to make their own decisions on the

23 child care that best suits their family’s needs;
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•HR 1923 IH

1 ‘‘(3) to encourage States to provide consumer

2 education information to help parents make in3 formed choices about child care;

4 ‘‘(4) to assist States to provide child care to

5 parents trying to achieve independence from public

6 assistance; and

7 ‘‘(5) to assist States in implementing the

8 health, safety, licensing, and registration standards

9 established in State regulations.’’.

10 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

11 658B of the Child Care and Development Block Grant Act

12 of 1990 (42 U.S.C. 9858) is amended to read as follows:

13 ‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

14 ‘‘There is authorized to be appropriated to carry out

15 this subchapter $2,093,000,000 for each of the fiscal

16 years 1996, 1997, 1998, 1999, and 2000.’’.

17 (c) LEAD ENTITY.—Section 658D of the Child Care

18 and Development Block Grant Act of 1990 (42 U.S.C.

19 9858b) is amended—

20 (1) in the heading of such section by striking

21 ‘‘AGENCY’’ and inserting ‘‘ENTITY’’,

22 (2) in subsection (a) by inserting ‘‘or other en23 tity’’ after ‘‘State agency’’, and

24 (3) by striking ‘‘lead agency’’ each place it ap25 pears and inserting ‘‘lead entity’’.
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1 (d) APPLICATION AND PLAN.—Section 658E of the

2 Child Care and Development Block Grant Act of 1990 (42

3 U.S.C. 9858c) is amended—

4 (1) in subsection (b)—

5 (A) by striking ‘‘implemented—’’ and all

6 that follows through ‘‘(2)’’ and inserting ‘‘im7 plemented’’, and

8 (B) by striking ‘‘for subsequent State

9 plans’’,

10 (2) in subsection (c)—

11 (A) in paragraph (1)—

12 (i) in the heading of such paragraph

13 by striking ‘‘AGENCY’’ and inserting ‘‘EN14 TITY’’, and

15 (ii) by striking ‘‘agency’’ and inserting

16 ‘‘entity’’,

17 (B) in paragraph (2)—

18 (i) in subparagraph (A)—

19 (I) in clause (i) by striking ‘‘,

20 other than through assistance pro21 vided under paragraph (3)(C),’’ and

22 (II) by striking ‘‘except’’ and all

23 that follows through ‘‘1992’’, and in24 serting ‘‘and provide a detailed de25 scription of the procedures the State
828

•HR 1923 IH

1 will implement to carry out the re2 quirements of this subparagraph’’,

3 (ii) in subparagraph (B)—

4 (I) by striking ‘‘Provide assur5 ances’’ and inserting ‘‘Certify’’, and

6 (II) by inserting before the pe7 riod at the end ‘‘and provide a de8 tailed description of such procedures’’,

9 (iii) in subparagraph (C)—

10 (I) by striking ‘‘Provide assur11 ances’’ and inserting ‘‘Certify’’, and

12 (II) by inserting before the pe13 riod at the end ‘‘and provide a de14 tailed description of how such record

15 is maintained and is made available’’,

16 (iv) by amending subparagraph (D) to

17 read as follows:

18 ‘‘(D) CONSUMER EDUCATION INFORMA19 TION.—Provide assurances that the State will

20 collect and disseminate to parents of eligible

21 children and the general public, consumer edu22 cation information that will promote informed

23 child care choices.’’,

24 (v) in subparagraph (E)—
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1 (I) by striking ‘‘Provide assur2 ances’’ and inserting ‘‘Certify’’,

3 (II) in clause (i) by inserting

4 ‘‘health, safety, and’’ after ‘‘comply

5 with all’’,

6 (III) in clause (i) by striking ‘‘;

7 and’’ at the end,

8 (IV) by striking ‘‘that—’’ and all

9 that follows through ‘‘(i)’’, and insert10 ing ‘‘that’’, and

11 (V) by striking ‘‘(ii)’’ and all that

12 follows through the end of such sub13 paragraph, and inserting ‘‘and provide

14 a detailed description of such require15 ments and of how such requirements

16 are effectively enforced.’’, and

17 (vi) by striking subparagraphs (F),

18 (G), (H), (I), and (J),

19 (C) in paragraph (3)—

20 (i) in subparagraph (A) by inserting

21 ‘‘or as authorized by section 658T’’ before

22 the period at the end,

23 (ii) in subparagraph (B)—

24 (I) by striking ‘‘.—Subject to the

25 reservation contained in subparagraph
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•HR 1923 IH

1 (C), the’’ and inserting ‘‘AND RELAT2 ED ACTIVITIES.—The’’,

3 (II) by inserting ‘‘, other than

4 amounts transferred under section

5 658T,’’ after ‘‘subchapter’’,

6 (III) in clause (i) by striking ‘‘;

7 and’’ at the end and inserting a pe8 riod,

9 (IV) by striking ‘‘for—’’ and all

10 that follows through ‘‘section

11 658E(c)(2)(A)’’ and inserting ‘‘for

12 child care services, activities that im13 prove the quality or availability of

14 such services, and any other activity

15 that the State deems appropriate to

16 realize any of the goals specified in

17 paragraphs (2) through (5) of section

18 658A(b)’’, and

19 (V) by striking clause (ii), and

20 (iii) by amending subparagraph (C) to

21 read as follows:

22 ‘‘(C) LIMITATION ON ADMINISTRATIVE

23 COSTS.—Not more than 5 percent of the aggre24 gate amount of payments received under this

25 subchapter by a State in each fiscal year may
831

•HR 1923 IH

1 be expended for administrative costs incurred

2 by such State to carry out all its functions and

3 duties under this subchapter.’’,

4 (D) in paragraph (4)(A)—

5 (i) by striking ‘‘provide assurances’’

6 and inserting ‘‘certify’’,

7 (ii) in the first sentence by inserting

8 ‘‘and shall provide a summary of the facts

9 relied on by the State to determine that

10 such rates are sufficient to ensure such ac11 cess’’ before the period, and

12 (iii) by striking the last sentence, and

13 (E) by striking paragraph (5).

14 (e) LIMITATIONS ON STATE ALLOTMENTS—Section

15 658F(b)(2) of the Child Care and Development Block

16 Grant Act of 1990 (42 U.S.C. 9858d(b)(2)) is amended

17 by striking ‘‘referred to in section 658E(c)(2)(F)’’.

18 (f) REPEAL OF EARMARKED REQUIRED EXPENDI19 TURES.—The Child Care and Development Block Grant

20 Act of 1990 (42 U.S.C. 9801 note) is amended by striking

21 sections 658G and 658H.

22 (g) ADMINISTRATION AND ENFORCEMENT.—Section

23 658I(a) of the Child Care and Development Block Grant

24 Act of 1990 (42 U.S.C. 9858g(a)) is amended—
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•HR 1923 IH

1 (1) in paragraph (1) by inserting ‘‘and’’ at the

2 end,

3 (2) by striking paragraph (2), and

4 (3) by redesignating paragraph (3) as para5 graph (2).

6 (h) PAYMENTS.—Section 658J(c) of the Child Care

7 and Development Block Grant Act of 1990 (42 U.S.C.

8 9858h(c)) is amended—

9 (1) by striking ‘‘expended’’ and inserting ‘‘obli10 gated’’, and

11 (2) by striking ‘‘3 fiscal years’’ and inserting

12 ‘‘fiscal year’’.

13 (i) ANNUAL REPORT AND AUDITS.—Section 658K of

14 the Child Care and Development Block Grant Act of 1990

15 (42 U.S.C. 9858i) is amended—

16 (1) in the heading of such section by inserting

17 ‘‘, EVALUATION PLANS,’’ after ‘‘REPORT’’,

18 (2) in subsection (a)—

19 (A) by striking ‘‘, 1992’’ and inserting

20 ‘‘following the end of the first fiscal year with

21 respect to which the amendments made by the

22 Personal Responsibility Act of 1995 apply’’,

23 (B) by amending paragraph (2) to read as

24 follows:
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1 ‘‘(2) containing data on the manner in which

2 the child care needs of families in the State are

3 being fulfilled, including information concerning—

4 ‘‘(A) the number and ages of children

5 being assisted with funds provided under this

6 subchapter;

7 ‘‘(B) with respect to the families of such

8 children—

9 ‘‘(i) the number of other children in

10 such families;

11 ‘‘(ii) the number of such families that

12 include only 1 parent;

13 ‘‘(iii) the number of such families that

14 include both parents;

15 ‘‘(iv) the ages of the mothers of such

16 children;

17 ‘‘(v) the ages of the fathers of such

18 children;

19 ‘‘(vi) the sources of the economic re20 sources of such families, including the

21 amount of such resources obtained from

22 (and separately identified as being from)—

23 ‘‘(I) employment, including self24 employment;
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1 ‘‘(II) assistance received under

2 part A of title IV of the Social Secu3 rity Act (42 U.S.C. 601 et seq.);

4 ‘‘(III) part B of title IV of the

5 Social Security Act (42 U.S.C. 621 et

6 seq.);

7 ‘‘(IV) the Child Nutrition Act of

8 1966 (42 U.S.C. 1771 et seq.);

9 ‘‘(V) the National School Lunch

10 Act (42 U.S.C. 1751 et seq.);

11 ‘‘(VI) assistance received under

12 title XVI of the Social Security Act

13 (42 U.S.C. 1381 et seq.);

14 ‘‘(VII) assistance received under

15 title XIV of the Social Security Act

16 (42 U.S.C. 1351 et seq.);

17 ‘‘(VIII) assistance received under

18 title XIX of the Social Security Act

19 (42 U.S.C. 1396 et seq.);

20 ‘‘(IX) assistance received under

21 title XX of the Social Security Act

22 (42 U.S.C. 1397 et seq.); and

23 ‘‘(X) any other source of eco24 nomic resources the Secretary deter25 mines to be appropriate;
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1 ‘‘(C) the number of such providers sepa2 rately identified with respect to each type of

3 child care provider specified in section 658P(5)

4 that provided child care services obtained with

5 assistance provided under this subchapter;

6 ‘‘(D) with respect to cost of such serv7 ices—

8 ‘‘(i) the cost imposed by such provid9 ers to provide such services; and

10 ‘‘(ii) the portion of such cost paid

11 with assistance provided under this sub12 chapter;

13 ‘‘(E) with respect to consumer education

14 information described in section 658E(c)(2)(D)

15 provided by such State—

16 ‘‘(i) the manner in which such infor17 mation was provided; and

18 ‘‘(ii) the number of parents to whom

19 such information was provided; and

20 ‘‘(F) with respect to complaints received by

21 such State regarding child care services ob22 tained with assistance provided under this sub23 chapter—

24 ‘‘(i) the number of such complaints

25 that were found to have merit; and
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1 ‘‘(ii) a description of the actions taken

2 by the State to correct the circumstances

3 on which such complaints were based.’’,

4 (C) by striking paragraphs (3), (4), (5),

5 and (6) and inserting the following:

6 ‘‘(3) containing evidence demonstrating that the

7 State satisfied the requirements of section

8 658E(c)(2)(F); and

9 ‘‘(4) identifying each State program operated

10 under a provision of law specified in section 658T to

11 which the State transferred funds under the author12 ity of such section, specifying the amount of funds

13 so transferred to such program, and containing a

14 justification for so transferring such amount;’’, and

15 (3) in subsection (b)—

16 (A) in paragraph (1) by striking ‘‘a appli17 cation’’ and inserting ‘‘an application’’,

18 (B) in paragraph (2) by striking ‘‘any

19 agency administering activities that receive’’

20 and inserting ‘‘the State that receives’’, and

21 (C) in paragraph (4) by striking ‘‘entitles’’

22 and inserting ‘‘entitled’’, and

23 (4) by redesignating subsection (b) as sub24 section (c), and
837

•HR 1923 IH

1 (5) by inserting after subsection (a) the follow2 ing:

3 ‘‘(b) STATE EVALUATION PLAN AND EVALUATION

4 RESULTS.—

5 ‘‘(1) EVALUATION PLAN.—In the first report

6 submitted under subsection (a) after the date of the

7 enactment of the Personal Responsibility Act of

8 1995, and in the report for each alternating 1-year

9 period thereafter, the State shall include a plan the

10 State intends to carry out in the 1-year period sub11 sequent to the period for which such report is sub12 mitted, to evaluate the extent to which the State has

13 realized each of the goals specified in paragraphs (2)

14 through (5) of section 658A(b). The State shall in15 clude in such plan a description of the types of data

16 and other information the State will collect to deter17 mine whether the State has realized such goals.

18 ‘‘(2) EVALUATION RESULTS.—In the second re19 port submitted under subsection (a) after the date

20 of the enactment of the Personal Responsibility Act

21 of 1995, and in the report for each alternating 1-

22 year period thereafter, the State shall include a sum23 mary of the results of an evaluation carried out

24 under the evaluation plan contained in the report
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1 submitted under subsection (a) for the preceding 1-

2 year period.’’.

3 (j) REPORT BY SECRETARY.—Section 658L of the

4 Child Care and Development Block Grant Act of 1990 (42

5 U.S.C. 9858j) is amended—

6 (1) by striking ‘‘, 1993, and annually’’ and in7 serting ‘‘following the end of the second fiscal year

8 with respect to which the amendments made by the

9 Personal Responsibility Act of 1995 apply, and bien10 nially’’,

11 (2) by striking ‘‘Committee on Education and

12 Labor’’ and inserting ‘‘Speaker’’,

13 (3) by striking ‘‘Committee on Labor and

14 Human Resources’’ and inserting ‘‘President pro

15 tempore’’, and

16 (4) by striking the last sentence.

17 (k) REALLOTMENTS.—Section 658O of the Child

18 Care and Development Block Grant Act of 1990 (42

19 U.S.C. 9858m) is amended—

20 (1) in subsection (a)(1)—

21 (A) by striking ‘‘POSSESSIONS’’ and insert22 ing ‘‘POSSESSIONS’’,

23 (B) by inserting ‘‘and’’ after ‘‘States,’’,

24 and
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1 (C) by striking ‘‘, and the Trust Territory

2 of the Pacific Islands’’,

3 (2) by amending subsection (b) to read as fol4 lows:

5 ‘‘(b) STATE ALLOTMENT.—From the amount appro6 priated under section 658B for each fiscal year remaining

7 after reservations under subsection (a), the Secretary shall

8 allot to each State (excluding Guam, American Samoa, the

9 Virgin Islands of the United States, and the Common10 wealth of the Northern Mariana Islands) an amount that

11 bears the same ratio to the amount so appropriated for

12 such fiscal year as the aggregate of the amounts received

13 by the State under—

14 ‘‘(1) this subchapter for fiscal year 1994;

15 ‘‘(2) section 403 of the Social Security Act,

16 with respect to expenditures by the State for child

17 care under section 402(g)(1) of such Act during fis18 cal year 1994; and

19 ‘‘(3) section 403(n) of the Social Security Act

20 for fiscal year 1994;

21 bears to the aggregate of the amounts received by all the

22 States (excluding Guam, American Samoa, the Virgin Is23 lands of the United States, and the Commonwealth of the

24 Northern Mariana Islands) under paragraphs (1), (2), and

25 (3).’’,
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1 (3) in subsection (c)—

2 (A) in paragraph (2)(A) by striking ‘‘agen3 cy’’ and inserting ‘‘entity’’, and

4 (B) in paragraph (5) by striking ‘‘our’’

5 and inserting ‘‘out’’,

6 (4) by striking subsection (e), and

7 (5) by redesignating subsection (f) as sub8 section (e).

9 (l) DEFINITIONS.—Section 658P of the Child Care

10 and Development Block Grant Act of 1990 (42 U.S.C.

11 9858n) is amended—

12 (1) in paragraph (5)(A)—

13 (A) in clause (i) by striking ‘‘and’’ at the

14 end and inserting ‘‘or’’,

15 (B) by striking ‘‘that—’’ and all that fol16 lows through ‘‘(i)’’, and inserting ‘‘that’’, and

17 (C) by striking clause (ii),

18 (2) by amending paragraph (8) to read as fol19 lows:

20 ‘‘(8) LEAD ENTITY.—The term ‘lead entity’

21 means the State agency or other entity designated

22 under section 658B(a).’’,

23 (3) by striking paragraphs (3), (10), and (12),

24 (4) by inserting after paragraph (2) the follow25 ing:
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1 ‘‘(3) CHILD CARE SERVICES.—The term ‘child

2 care services’ means services that constitute physical

3 care of a child and may include services that are de4 signed to enhance the educational, social, cultural,

5 emotional, and recreational development of a child

6 but that are not intended to serve as a substitute

7 for compulsory educational services.’’,

8 (5) in paragraph (13)—

9 (A) by inserting ‘‘or’’ after ‘‘Samoa,’’, and

10 (B) by striking ‘‘, and the Trust Territory

11 of the Pacific Islands’’, and

12 (6) by redesignating paragraphs (11), (13), and

13 (14) as paragraphs (10), (11), and (12), respec14 tively.

15 (m) AUTHORITY TO TRANSFER FUNDS.—The Child

16 Care and Development Block Grant Act of 1990 (42

17 U.S.C. 9858 et seq.) is amended by inserting after section

18 658S the following:

19 ‘‘SEC. 658T. TRANSFER OF FUNDS.

20 ‘‘(a) AUTHORITY.—Of the aggregate amount of pay21 ments received under this subchapter by a State in each

22 fiscal year, the State may transfer not more than 20 per23 cent for use by the State to carry out State programs

24 under 1 or more of the following provisions of law:
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1 ‘‘(1) Part A of title IV of the Social Security

2 Act (42 U.S.C. 601 et seq.).

3 ‘‘(2) Part B of title IV of the Social Security

4 Act (42 U.S.C. 621 et seq.).

5 ‘‘(3) The Child Nutrition Act of 1966 (42

6 U.S.C. 1771 et seq.).

7 ‘‘(4) The National School Lunch Act (42

8 U.S.C. 1751 et seq.).

9 ‘‘(5) Title XX of the Social Security Act (42

10 U.S.C. 1397 et seq.).

11 ‘‘(b) REQUIREMENTS APPLICABLE TO FUNDS

12 TRANSFERRED.—Funds transferred under subsection (a)

13 to carry out a State program operated under a provision

14 of law specified in such subsection shall not be subject to

15 the requirements of this subchapter, but shall be subject

16 to the same requirements that apply to Federal funds pro17 vided directly under such provision of law to carry out

18 such program.’’.

19 SEC. 14302. REPEAL OF CHILD CARE ASSISTANCE AUTHOR20 IZED BY ACTS OTHER THAN THE SOCIAL SE21 CURITY ACT.

22 (a) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP

23 ASSISTANCE ACT OF 1985.—Title VI of the Human Serv24 ices Reauthorization Act of 1986 (42 U.S.C. 10901–

25 10905) is repealed.
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1 (b) STATE DEPENDENT CARE DEVELOPMENT

2 GRANTS ACT.—Subchapter E of chapter 8 of subtitle A

3 of title VI of the Omnibus Budget Reconciliation Act of

4 1981 (42 U.S.C. 9871–9877) is repealed.

5 (c) PROGRAMS OF NATIONAL SIGNIFICANCE.—Title

6 X of the Elementary and Secondary Education Act of

7 1965, as amended by Public Law 103–382 (108 Stat.

8 3809 et seq.), is amended—

9 (1) in section 10413(a) by striking paragraph

10 (4),

11 (2) in section 10963(b)(2) by striking subpara12 graph (G), and

13 (3) in section 10974(a)(6) by striking subpara14 graph (G).

15 (d) NATIVE HAWAIIAN FAMILY-BASED EDUCATION

16 CENTERS.—Section 9205 of the Native Hawaiian Edu17 cation Act (Public Law 103–382; 108 Stat. 3794) is re18 pealed.
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1 CHAPTER 2—FAMILY AND SCHOOL-BASED

2 NUTRITION BLOCK GRANTS

3 Subchapter A—Family Nutrition Block Grant

4 Program

5 SEC. 14321. AMENDMENT TO CHILD NUTRITION ACT OF

6 1966.

7 The Child Nutrition Act of 1966 (42 U.S.C. 1771

8 et seq.) is amended to read as follows:

9 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

10 ‘‘(a) SHORT TITLE.—This Act may be cited as the

11 ‘Child Nutrition Act of 1966’.

12 ‘‘(b) TABLE OF CONTENTS.—The table of contents

13 is as follows:

‘‘Sec. 1. Short title; table of contents.

‘‘Sec. 2. Authorization.

‘‘Sec. 3. Allotment.

‘‘Sec. 4. Application.

‘‘Sec. 5. Use of amounts.

‘‘Sec. 6. Reports.

‘‘Sec. 7. Penalties.

‘‘Sec. 8. Model nutrition standards for food assistance for pregnant,

postpartum, and breastfeeding women, infants and children.

‘‘Sec. 9. Authorization of appropriations.

‘‘Sec. 10. Definitions.

14 ‘‘SEC. 2. AUTHORIZATION.

15 ‘‘(a) IN GENERAL.—In the case of each State that

16 in accordance with section 4 submits to the Secretary of

17 Agriculture an application for a fiscal year, the Secretary

18 shall provide a grant for the year to the State for the pur19 pose of achieving the goals described in subsection (b).
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1 The grant shall consist of the allotment determined for

2 the State under section 3.

3 ‘‘(b) GOALS.—The goals of this Act are—

4 ‘‘(1) to provide nutritional risk assessment, food

5 assistance based on such risk assessment, and nutri6 tion education and counseling to economically dis7 advantaged pregnant women, postpartum women,

8 breastfeeding women, infants, and young children

9 who are determined to be at nutritional risk;

10 ‘‘(2) to provide nutritional risk assessments of

11 such women in order to provide food assistance and

12 nutrition education which meets their specific needs;

13 ‘‘(3) to provide nutrition education to such

14 women in order to increase their awareness of the

15 types of foods which should be consumed to main16 tain good health;

17 ‘‘(4) to provide food assistance, including nutri18 tious meal supplements, to such women in order to

19 reduce incidences of low-birthweight babies and ba20 bies born with birth defects as a result of nutritional

21 deficiencies;

22 ‘‘(5) to provide food assistance, including nutri23 tious meal supplements, to such women, infants, and

24 young children in order to ensure their future good

25 health;
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•HR 1923 IH

1 ‘‘(6) to ensure that such women, infants, and

2 children are referred to other health services, includ3 ing routine pediatric and obstetric care, when nec4 essary;

5 ‘‘(7) to ensure that children from economically

6 disadvantaged families in day care facilities, family

7 day care homes, homeless shelters, settlement

8 houses, recreational centers, Head Start centers,

9 Even Start programs and child care facilities for

10 children with disabilities receive nutritious meals,

11 supplements, and low-cost milk; and

12 ‘‘(8) to provide summer food service programs

13 to meet the nutritional needs of children from eco14 nomically disadvantaged families during months

15 when school is not in session.

16 ‘‘(c) TIMING OF PAYMENTS.—The Secretary shall

17 provide payments under a grant under this Act to States

18 on a quarterly basis.

19 ‘‘SEC. 3. ALLOTMENT.

20 ‘‘The Secretary shall allot the amount appropriated

21 to carry out this Act for a fiscal year among the States

22 as follows:

23 ‘‘(1) FIRST FISCAL YEAR.—

24 ‘‘(A) IN GENERAL.—With respect to the

25 first fiscal year for which the Secretary provides
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1 grants to States under this Act, the amount al2 lotted to each State shall bear the same propor3 tion to such amount appropriated as the aggre4 gate of the amounts described in subparagraph

5 (B) that were received by each such State

6 under the provisions of law described in such

7 subparagraph (as such provisions of law were in

8 effect on the day before the date of the enact9 ment of the Personal Responsibility Act of

10 1995) for the preceding fiscal year bears to the

11 aggregate of the amounts described in subpara12 graph (B) that were received by all such States

13 under such provisions of law for such preceding

14 fiscal year.

15 ‘‘(B) AMOUNTS DESCRIBED.—The

16 amounts described in this subparagraph are the

17 following:

18 ‘‘(i) The amount received under the

19 special supplemental nutrition program for

20 women, infants, and children under section

21 17 of this Act (42 U.S.C. 1786).

22 ‘‘(ii) The amount received under the

23 homeless children nutrition program estab24 lished under section 17B of the National

25 School Lunch Act (42 U.S.C. 1766b).
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1 ‘‘(iii) 87.5 percent of the sum of the

2 amounts received under the following pro3 grams:

4 ‘‘(I) The child and adult care

5 food program under section 17 of the

6 National School Lunch Act (42

7 U.S.C. 1766), except for subsection

8 (o) of such section.

9 ‘‘(II) The summer food service

10 program for children established

11 under section 13 of the National

12 School Lunch Act (42 U.S.C. 1761).

13 ‘‘(III) The special milk program

14 established under section 3 of this Act

15 (42 U.S.C. 1772).

16 ‘‘(2) SECOND FISCAL YEAR.—With respect to

17 the second fiscal year for which the Secretary pro18 vides grants to States under this Act—

19 ‘‘(A) 95 percent of such amount appro20 priated shall be allotted among the States by al21 lotting to each State an amount that bears the

22 same proportion to such amount appropriated

23 as the amount allotted to each such State from

24 a grant under this Act for the preceding fiscal

25 year bears to the aggregate of the amounts al-
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1 lotted to all such States from grants under this

2 Act for such preceding fiscal year; and

3 ‘‘(B) 5 percent of such amount appro4 priated shall be allotted among the States by al5 lotting to each State an amount that bears the

6 same proportion to such amount appropriated

7 as the relative number of individuals receiving

8 assistance during the 1-year period ending on

9 June 30 of the preceding fiscal year in such

10 State from amounts received from a grant

11 under this Act for such preceding fiscal year

12 bears to the total number of individuals receiv13 ing assistance in all States from amounts re14 ceived from grants under this Act for the pre15 ceding fiscal year.

16 ‘‘(3) THIRD AND FOURTH FISCAL YEARS.—

17 With respect to each of the third and fourth fiscal

18 years for which the Secretary provides grants to

19 States under this Act—

20 ‘‘(A) 90 percent of such amount appro21 priated shall be allotted among the States by al22 lotting to each State an amount determined in

23 accordance with the formula described in para24 graph (2)(A); and
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1 ‘‘(B) 10 percent of such amount appro2 priated shall be allotted among the States by al3 lotting to each State an amount determined in

4 accordance with the formula described in para5 graph (2)(B).

6 ‘‘(4) FIFTH FISCAL YEAR.—With respect to the

7 fifth fiscal year for which the Secretary provides

8 grants to States under this Act—

9 ‘‘(A) 85 percent of such amount appro10 priated shall be allotted among the States by al11 lotting to each State an amount determined in

12 accordance with the formula described in para13 graph (2)(A); and

14 ‘‘(B) 15 percent of such amount appro15 priated shall be allotted among the States by al16 lotting to each State an amount determined in

17 accordance with the formula described in para18 graph (2)(B).

19 ‘‘SEC. 4. APPLICATION.

20 ‘‘The Secretary may provide a grant under this Act

21 to a State for a fiscal year only if the State submits to

22 the Secretary an application containing only—

23 ‘‘(1) an agreement that the State will use

24 amounts received from such grant in accordance

25 with section 5;
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1 ‘‘(2) except as provided in paragraph (3), an

2 agreement that the State will set minimum nutri3 tional requirements for food assistance provided

4 under this Act based on the most recent tested nu5 tritional research available, except that—

6 ‘‘(A) such requirements shall not be con7 strued to prohibit the substitution of foods to

8 accommodate the medical or other special die9 tary needs of individual students; and

10 ‘‘(B) such requirements shall, at a mini11 mum, be based on—

12 ‘‘(i) the weekly average of the nutrient

13 content of school lunches; or

14 ‘‘(ii) such other standards as the

15 State may prescribe;

16 ‘‘(3) an agreement that the State, with respect

17 to the provision of food assistance to economically

18 disadvantaged pregnant women, postpartum women,

19 breastfeeding women, infants, and young children,

20 shall—

21 ‘‘(A) implement the minimum nutritional

22 requirements described in paragraph (2) for

23 such food assistance; or
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1 ‘‘(B) implement the model nutrition stand2 ards developed under section 8 for such food as3 sistance;

4 ‘‘(4) an agreement that the State will take such

5 reasonable steps as the State deems necessary to re6 strict the use and disclosure of information about in7 dividuals and families receiving assistance under this

8 Act;

9 ‘‘(5) an agreement that the State will use not

10 more than 5 percent of the amount of such grant for

11 administrative costs incurred to provide assistance

12 under this Act, except that costs associated with the

13 nutritional risk assessment of individuals described

14 in section 5(a)(1) and costs associated with nutrition

15 education and counseling provided to such individ16 uals shall not be considered to be administrative

17 costs; and

18 ‘‘(6) an agreement that the State will submit to

19 the Secretary a report in accordance with section 6.

20 ‘‘SEC. 5. USE OF AMOUNTS.

21 ‘‘(a) IN GENERAL.—The Secretary may provide a

22 grant under this Act to a State only if the State agrees

23 that it will use all amounts received from such grant—

24 ‘‘(1) subject to subsection (b), to provide nutri25 tional risk assessment, food assistance based on such
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1 risk assessment, and nutrition education and coun2 seling to economically disadvantaged pregnant

3 women, postpartum women, breastfeeding women,

4 infants, and young children who are determined to

5 be at nutritional risk;

6 ‘‘(2) to provide milk in nonprofit nursery

7 schools, child care centers, settlement houses, sum8 mer camps, and similar institutions devoted to the

9 care and training of children, to children from eco10 nomically disadvantaged families;

11 ‘‘(3) to provide food service programs in institu12 tions and family day care homes providing child care

13 to children from economically disadvantaged fami14 lies;

15 ‘‘(4) to provide summer food service programs

16 carried out by nonprofit food authorities, local gov17 ernments, nonprofit higher education institutions

18 participating in the National Youth Sports Program,

19 and residential nonprofit summer camps to children

20 from economically disadvantaged families; and

21 ‘‘(5) to provide nutritious meals to pre-school

22 age homeless children in shelters and other facilities

23 serving the homeless population.
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1 ‘‘(b) ADDITIONAL REQUIREMENTS WITH RESPECT

2 TO ASSISTANCE FOR PREGNANT, POSTPARTUM, AND

3 BREASTFEEDING WOMEN, INFANTS, AND CHILDREN.—

4 ‘‘(1) MINIMUM AMOUNT OF ASSISTANCE.—The

5 State shall ensure that not less than 80 percent of

6 the amount of the grant is used to provide nutri7 tional risk assessment, food assistance based on such

8 nutritional risk assessment, and nutrition education

9 and counseling to economically disadvantaged preg10 nant women, postpartum women, breastfeeding

11 women, infants, and young children under sub12 section (a)(1).

13 ‘‘(2) COST CONTAINMENT MEASURES REGARD14 ING PROCUREMENT OF INFANT FORMULA.—

15 ‘‘(A) IN GENERAL.—The State shall, with

16 respect to the provision of food assistance to

17 economically disadvantaged pregnant women,

18 postpartum women, breastfeeding women, in19 fants, and young children under subsection

20 (a)(1), establish and carry out a cost contain21 ment system for the procurement of infant for22 mula.

23 ‘‘(B) USE OF AMOUNTS RESULTING FROM

24 SAVINGS.—The State shall use amounts avail25 able to the State as result of savings in costs
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1 to the State from the implementation of the

2 cost containment system described in subpara3 graph (A) for the purpose of providing the as4 sistance described in paragraphs (1) through

5 (5) of subsection (a).

6 ‘‘(C) ANNUAL REPORTS.—The State shall

7 submit to the Secretary for each fiscal year a

8 report containing—

9 ‘‘(i) a description of the cost contain10 ment system for infant formula imple11 mented by the State in accordance with

12 subparagraph (A) for such fiscal year; and

13 ‘‘(ii) the estimated amount of savings

14 in costs derived by the State in providing

15 food assistance described in such subpara16 graph under such cost containment system

17 for such fiscal year as compared to the

18 amount of such savings derived by the

19 State under the cost containment system

20 for the preceding fiscal year, where appro21 priate.

22 ‘‘(3) ASSISTANCE FOR MEMBERS OF THE

23 ARMED FORCES AND THEIR DEPENDENTS.—The

24 State shall ensure that assistance described in sub25 section (a)(1) is provided to members of the Armed
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1 Forces and dependents of such members (regardless

2 of the State of residence of such members or de3 pendents) who meet the requirements of such sub4 section on an equitable basis with assistance pro5 vided to all other individuals under such subsection

6 in such State.

7 ‘‘(c) ADDITIONAL REQUIREMENT WITH RESPECT TO

8 CHILD CARE ASSISTANCE ON MILITARY INSTALLA9 TIONS.—

10 ‘‘(1) IN GENERAL.—To the extent consistent

11 with the number of children who are receiving assist12 ance under child care programs established and car13 ried out on military installations in such State by

14 the Department of Defense, the State, after timely

15 and appropriate consultation with representatives of

16 such programs, shall provide assistance to such pro17 grams for such children (regardless of the State of

18 residence of such children) in accordance with sub19 section (a)(3) on an equitable basis with assistance

20 provided in accordance with such subsection to all

21 other child care programs carried out in such State.

22 ‘‘(2) LIMITATION.—In providing assistance to a

23 child care program established and carried out on a

24 military installation under paragraph (1), a State

25 shall not require that such program be licensed
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1 under State law if such program is licensed by the

2 Department of Defense.

3 ‘‘(d) AUTHORITY TO USE AMOUNTS FOR OTHER

4 PURPOSES.—

5 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

6 and (3), a State may use not more than 20 percent

7 of amounts received from a grant under this Act for

8 a fiscal year to carry out a State program pursuant

9 to any or all of the following provisions of law:

10 ‘‘(A) Part A of title IV of the Social Secu11 rity Act (42 U.S.C. 601 et seq.).

12 ‘‘(B) Part B of title IV of the Social Secu13 rity Act (42 U.S.C. 621 et seq.).

14 ‘‘(C) Title XX of the Social Security Act

15 (42 U.S.C. 1397 et seq.).

16 ‘‘(D) The National School Lunch Act (42

17 U.S.C. 1751 et seq.).

18 ‘‘(E) The Child Care and Development

19 Block Grant Act of 1990 (42 U.S.C. 9858 et

20 seq.).

21 ‘‘(2) SUFFICIENT FUNDING DETERMINATION.—

22 Prior to using any amounts received from a grant

23 under this Act for a fiscal year to carry out a State

24 program pursuant to any or all of the provisions of

25 law described in paragraph (1), the appropriate
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1 State agency shall make a determination that suffi2 cient amounts will remain available for such fiscal

3 year to carry out this Act.

4 ‘‘(3) RULES GOVERNING USE OF AMOUNTS FOR

5 OTHER PURPOSES.—Amounts paid to the State

6 under a grant under this Act that are used to carry

7 out a State program pursuant to a provision of law

8 specified in paragraph (1) shall not be subject to the

9 requirements of this Act, but shall be subject to the

10 same requirements that apply to Federal funds pro11 vided directly under the provision of law to carry out

12 the program.

13 ‘‘SEC. 6. REPORTS.

14 ‘‘The Secretary may provide a grant under this Act

15 to a State for a fiscal year only if the State agrees that

16 it will submit, for such fiscal year, a report to the Sec17 retary describing—

18 ‘‘(1) the number of individuals receiving assist19 ance under the grant in accordance with each of

20 paragraphs (1) through (5) of section 5(a);

21 ‘‘(2) the different types of assistance provided

22 to such individuals in accordance with such para23 graphs;
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1 ‘‘(3) the extent to which such assistance was ef2 fective in achieving the goals described in section

3 2(b);

4 ‘‘(4) the standards and methods the State is

5 using to ensure the nutritional quality of such assist6 ance, including meals and supplements;

7 ‘‘(5) the number of low birthweight births in

8 the State in such fiscal year compared to the num9 ber of such births in the State in the previous fiscal

10 year; and

11 ‘‘(6) any other information which can be rea12 sonably required by the Secretary.

13 ‘‘SEC. 7. PENALTIES.

14 ‘‘(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION

15 OF THIS ACT.—

16 ‘‘(1) IN GENERAL.—The Secretary shall reduce

17 the amounts otherwise payable to a State under a

18 grant under this Act by any amount paid to the

19 State under this Act which an audit conducted pur20 suant to chapter 75 of title 31, United States Code,

21 finds has been used in violation of this Act.

22 ‘‘(2) LIMITATION.—In carrying out paragraph

23 (1), the Secretary shall not reduce any quarterly

24 payment by more than 25 percent.
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1 ‘‘(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED

2 REPORT.—The Secretary shall reduce by 3 percent the

3 amount otherwise payable to a State under a grant under

4 this Act for a fiscal year if the Secretary determines that

5 the State has not submitted the report required by section

6 6 for the immediately preceding fiscal year, within 6

7 months after the end of the immediately preceding fiscal

8 year.

9 ‘‘SEC. 8. MODEL NUTRITION STANDARDS FOR FOOD ASSIST10 ANCE FOR PREGNANT, POSTPARTUM, AND

11 BREASTFEEDING WOMEN, INFANTS AND

12 CHILDREN.

13 ‘‘(a) IN GENERAL.—Not later than April 1, 1996, the

14 Food and Nutrition Board of the Institute of Medicine of

15 the National Academy of Sciences, in cooperation with pe16 diatricians, obstetricians, nutritionists, and directors of

17 programs providing nutritional risk assessment, food as18 sistance, and nutrition education and counseling to eco19 nomically disadvantaged pregnant women, postpartum

20 women, breastfeeding women, infants, and young children,

21 shall develop model nutrition standards for food assistance

22 provided to such women, infants, and children under this

23 Act.

24 ‘‘(b) REQUIREMENT.—Such model nutrition stand25 ards shall require that food assistance provided to such
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1 women, infants, and children contain nutrients that are

2 lacking in the diets of such women, infants, and children,

3 as determined by nutritional research.

4 ‘‘(c) REPORT TO CONGRESS.—Not later than 1 year

5 after the date on which the model nutrition standards are

6 developed under subsection (a), the Food and Nutrition

7 Board of the Institute of Medicine of the National Acad8 emy of Sciences shall prepare and submit to the Congress

9 a report regarding the efforts of States to implement such

10 model nutrition standards.

11 ‘‘SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

12 ‘‘(a) IN GENERAL.—There are authorized to be ap13 propriated to carry out this Act $4,606,000,000 for fiscal

14 year 1996, $4,777,000,000 for fiscal year 1997,

15 $4,936,000,000 for fiscal year 1998, $5,120,000,000 for

16 fiscal year 1999, and $5,308,000,000 for fiscal year 2000.

17 ‘‘(b) AVAILABILITY.—Amounts authorized to be ap18 propriated under subsection (a) are authorized to remain

19 available until the end of the fiscal year subsequent to the

20 fiscal year for which such amounts are appropriated.

21 ‘‘SEC. 10. DEFINITIONS.

22 ‘‘For purposes of this Act:

23 ‘‘(1) BREASTFEEDING WOMEN.—The term

24 ‘breastfeeding women’ means women up to 1 year

25 postpartum who are breastfeeding their infants.
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1 ‘‘(2) ECONOMICALLY DISADVANTAGED.—The

2 term ‘economically disadvantaged’ means an individ3 ual or a family, as the case may be, whose annual

4 income does not exceed 185 percent of the applicable

5 family size income levels contained in the most re6 cent income poverty guidelines prescribed by the Of7 fice of Management and Budget and based on data

8 from the Bureau of the Census.

9 ‘‘(3) INFANTS.—The term ‘infants’ means indi10 viduals under 1 year of age.

11 ‘‘(4) POSTPARTUM WOMEN.—The term

12 ‘postpartum women’ means women who are in the

13 180-day period beginning on the termination of

14 pregnancy.

15 ‘‘(5) PREGNANT WOMEN.—The term ‘pregnant

16 women’ means women who have 1 or more fetuses

17 in utero.

18 ‘‘(6) SCHOOL.—The term ‘school’ means a pub19 lic or private nonprofit elementary, intermediate, or

20 secondary school.

21 ‘‘(7) SECRETARY.—The term ‘Secretary’ means

22 the Secretary of Agriculture.

23 ‘‘(8) STATE.—The term ‘State’ means any of

24 the several States, the District of Columbia, the

25 Commonwealth of Puerto Rico, the Commonwealth
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1 of the Northern Mariana Islands, American Samoa,

2 Guam, the Virgin Islands, or a tribal organization

3 (as defined in section 4(l) of the Indian Self-Deter4 mination and Education Assistance Act (25 U.S.C.

5 450b(l))).

6 ‘‘(9) YOUNG CHILDREN.—The term ‘young chil7 dren’ means individuals who have attained the age

8 of 1 but have not attained the age of 5.’’.

9 Subchapter B—School-Based Nutrition Block

10 Grant Program

11 SEC. 14341. AMENDMENT TO NATIONAL SCHOOL LUNCH

12 ACT.

13 The National School Lunch Act (42 U.S.C. 1751 et

14 seq.) is amended to read as follows:

15 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

16 ‘‘(a) SHORT TITLE.—This Act may be cited as the

17 ‘National School Lunch Act’.

18 ‘‘(b) TABLE OF CONTENTS.—The table of contents

19 is as follows:

‘‘Sec. 1. Short title; table of contents.

‘‘Sec. 2. Authorization.

‘‘Sec. 3. Allotment.

‘‘Sec. 4. Application.

‘‘Sec. 5. Use of amounts.

‘‘Sec. 6. Reports.

‘‘Sec. 7. Penalties.

‘‘Sec. 8. Assistance to children enrolled in private nonprofit schools and Department of Defense domestic dependents’ schools in case of restrictions on State or failure by State to provide assistance.

‘‘Sec. 9. Food service programs for department of defense overseas dependents’

schools.

‘‘Sec. 10. Model nutrition standards for meals for students.

‘‘Sec. 11. Definitions.
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1 ‘‘SEC. 2. AUTHORIZATION.

2 ‘‘(a) ENTITLEMENT.—

3 ‘‘(1) IN GENERAL.—In the case of each State

4 that in accordance with section 4 submits to the

5 Secretary of Agriculture an application for a fiscal

6 year, each such State shall be entitled to receive

7 from the Secretary for such fiscal year a grant for

8 the purpose of achieving the goals described in sub9 section (b). Subject to paragraph (2), the grant shall

10 consist of the allotment for such State determined

11 under section 3 of the school-based nutrition amount

12 for the fiscal year.

13 ‘‘(2) REQUIREMENT TO PROVIDE COMMOD14 ITIES.—9 percent of the amount of the assistance

15 available under this Act for each State shall be in

16 the form of commodities.

17 ‘‘(3) SCHOOL-BASED NUTRITION AMOUNT.—

18 ‘‘(A) IN GENERAL.—For purposes of this

19 Act, the term ‘school-based nutrition amount’

20 means, subject to the reservation contained in

21 subparagraph (B), $6,681,000,000 for fiscal

22 year 1996, $6,956,000,000 for fiscal year 1997,

23 $7,237,000,000 for fiscal year 1998,

24 $7,538,000,000 for fiscal year 1999, and

25 $7,849,000,000 for fiscal year 2000.
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1 ‘‘(B) RESERVATION.—For each fiscal year

2 described in subparagraph (A), the Secretary

3 shall reserve an amount equal to the amount

4 determined under subsection (c) of section 9 for

5 such fiscal year from the school-based nutrition

6 amount for the purpose of establishing and car7 rying out nutritious food service programs at

8 Department of Defense overseas dependents’

9 schools in accordance with such section.

10 ‘‘(4) AVAILABILITY.—Payments under a grant

11 to a State from the allotment determined under sec12 tion 3 for any fiscal year may be obligated by the

13 State in that fiscal year or in the succeeding fiscal

14 year.

15 ‘‘(b) GOALS.—The goals of this Act are—

16 ‘‘(1) to safeguard the health and well-being of

17 children through the provision of nutritious, well-bal18 anced meals and food supplements;

19 ‘‘(2) to provide economically disadvantaged chil20 dren access to nutritious free or low cost meals, food

21 supplements, and low-cost milk;

22 ‘‘(3) to ensure that children served under this

23 Act are receiving the nutrition they require to take

24 advantage of the educational opportunities provided

25 to them;
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1 ‘‘(4) to emphasize foods which are naturally

2 good sources of vitamins and minerals over foods

3 which have been enriched with vitamins and min4 erals and are high in fat or sodium content;

5 ‘‘(5) to provide a comprehensive school nutri6 tion program for children; and

7 ‘‘(6) to minimize paperwork burdens and ad8 ministrative expenses for participating schools.

9 ‘‘(c) TIMING OF PAYMENTS.—The Secretary shall

10 provide payments under a grant under this Act to States

11 on a quarterly basis.

12 ‘‘SEC. 3. ALLOTMENT.

13 ‘‘The Secretary shall allot the school-based nutrition

14 amount to carry out this Act for a fiscal year among the

15 States as follows:

16 ‘‘(1) FIRST FISCAL YEAR.—

17 ‘‘(A) IN GENERAL.—With respect to the

18 first fiscal year for which the Secretary provides

19 grants to States under this Act, the amount al20 lotted to each State shall bear the same propor21 tion to such school-based nutrition amount as

22 the aggregate of the amounts described in sub23 paragraph (B) that were received by each such

24 State under the provisions of law described in

25 such subparagraph (as such provisions of law
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1 were in effect on the day before the date of the

2 enactment of the Personal Responsibility Act of

3 1995) for the preceding fiscal year bears to the

4 aggregate of the amounts described in subpara5 graph (B) that were received by all such States

6 under such provisions of law for such preceding

7 fiscal year.

8 ‘‘(B) AMOUNTS DESCRIBED.—The

9 amounts described in this subparagraph are the

10 following:

11 ‘‘(i) The amount received under the

12 school breakfast program established under

13 section 4 of the Child Nutrition Act of

14 1966 (42 U.S.C. 1773).

15 ‘‘(ii) The amount received under the

16 school lunch program established under

17 this Act (42 U.S.C. 1751 et seq.).

18 ‘‘(iii) 12.5 percent of the sum of the

19 amounts received under the following pro20 grams:

21 ‘‘(I) The child and adult care

22 food program under section 17 of this

23 Act (42 U.S.C. 1766), except for sub24 section (o) of such section.
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1 ‘‘(II) The summer food service

2 program for children established

3 under section 13 of this Act (42

4 U.S.C. 1761).

5 ‘‘(III) The special milk program

6 established under section 3 of the

7 Child Nutrition Act of 1966 (42

8 U.S.C. 1772).

9 ‘‘(2) SECOND FISCAL YEAR.—With respect to

10 the second fiscal year for which the Secretary pro11 vides grants to States under this Act—

12 ‘‘(A) 95 percent of such school-based nu13 trition amount shall be allotted among the

14 States by allotting to each State an amount

15 that bears the same proportion to such school16 based nutrition amount as the amount allotted

17 to each such State from a grant under this Act

18 for the preceding fiscal year bears to the aggre19 gate of the amounts allotted to all such States

20 from grants under this Act for such preceding

21 fiscal year; and

22 ‘‘(B) 5 percent of such school-based nutri23 tion amount shall be allotted among the States

24 by allotting to each State an amount that bears

25 the same proportion to such school-based nutri-
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1 tion amount as the relative number of meals

2 served during the 1-year period ending on June

3 30 of the preceding fiscal year in a State from

4 amounts received from a grant under this Act

5 for such preceding fiscal year bears to the total

6 number of meals served in all States from

7 amounts received from grants under this Act

8 for the preceding fiscal year.

9 ‘‘(3) THIRD AND FOURTH FISCAL YEARS.—

10 With respect to each of the third and fourth fiscal

11 years for which the Secretary provides grants to

12 States under this Act—

13 ‘‘(A) 90 percent of such school-based nu14 trition amount shall be allotted among the

15 States by allotting to each State an amount de16 termined in accordance with the formula de17 scribed in paragraph (2)(A); and

18 ‘‘(B) 10 percent of such school-based nu19 trition amount shall be allotted among the

20 States by allotting to each State an amount de21 termined in accordance with the formula de22 scribed in paragraph (2)(B).

23 ‘‘(4) FIFTH FISCAL YEAR.—With respect to the

24 fifth fiscal year for which the Secretary provides

25 grants to States under this Act—
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1 ‘‘(A) 85 percent of such school-based nu2 trition amount shall be allotted among the

3 States by allotting to each State an amount de4 termined in accordance with the formula de5 scribed in paragraph (2)(A); and

6 ‘‘(B) 15 percent of such school-based nu7 trition amount shall be allotted among the

8 States by allotting to each State an amount de9 termined in accordance with the formula de10 scribed in paragraph (2)(B).

11 ‘‘SEC. 4. APPLICATION.

12 ‘‘The Secretary may provide a grant under this Act

13 to a State for a fiscal year only if the State submits to

14 the Secretary an application containing only—

15 ‘‘(1) an agreement that the State will use

16 amounts received from such grant in accordance

17 with section 5;

18 ‘‘(2) except as provided in paragraph (3), an

19 agreement that the State will set minimum nutri20 tional requirements for meals provided under this

21 Act based on the most recent tested nutritional re22 search available, except that—

23 ‘‘(A) such requirements shall not be con24 strued to prohibit the substitution of foods to
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1 accommodate the medical or other special die2 tary needs of individual students; and

3 ‘‘(B) such requirements shall, at a mini4 mum, be based on—

5 ‘‘(i) the weekly average of the nutrient

6 content of school lunches; or

7 ‘‘(ii) such other standards as the

8 State may prescribe;

9 ‘‘(3) an agreement that the State, with respect

10 to the provision of meals to students, shall—

11 ‘‘(A) implement the minimum nutritional

12 requirements described in paragraph (2) for

13 such meals; or

14 ‘‘(B) implement the model nutrition stand15 ards developed under section 10 for such meals;

16 ‘‘(4) an agreement that the State will take such

17 reasonable steps as the State deems necessary to re18 strict the use and disclosure of information about in19 dividuals and families receiving assistance under this

20 Act;

21 ‘‘(5) an agreement that the State will use not

22 more than 2 percent of the amount of such grant for

23 administrative costs incurred to provide assistance

24 under this Act; and
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1 ‘‘(6) an agreement that the State will submit to

2 the Secretary a report in accordance with section 6.

3 ‘‘SEC. 5. USE OF AMOUNTS.

4 ‘‘(a) IN GENERAL.—The Secretary may provide a

5 grant under this Act to a State only if the State agrees

6 that it will use all amounts received from such grant to

7 provide assistance to schools to establish and carry out

8 nutritious food service programs that provide affordable

9 meals and supplements to students, which may include—

10 ‘‘(1) nonprofit school breakfast programs;

11 ‘‘(2) nonprofit school lunch programs;

12 ‘‘(3) nonprofit before and after school supple13 ment programs;

14 ‘‘(4) nonprofit low-cost milk services; and

15 ‘‘(5) nonprofit summer meals programs.

16 ‘‘(b) ADDITIONAL REQUIREMENTS.—

17 ‘‘(1) MINIMUM AMOUNT OF GRANT FOR FREE

18 OR LOW COST MEALS OR SUPPLEMENTS.—In provid19 ing assistance to schools to establish and carry out

20 nutritious food service programs in accordance with

21 subsection (a), the State shall ensure that not less

22 than 80 percent of the amount of the grant is used

23 to provide free or low cost meals or supplements to

24 economically disadvantaged children.
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1 ‘‘(2) PROVISION OF FOOD SERVICE PROGRAMS

2 IN PRIVATE NONPROFIT SCHOOLS AND DEPARTMENT

3 OF DEFENSE DOMESTIC DEPENDENTS’ SCHOOLS.—

4 To the extent consistent with the number of children

5 in the State who are enrolled in private nonprofit

6 schools and Department of Defense domestic de7 pendents’ schools, the State, after timely and appro8 priate consultation with representatives of such

9 schools, as the case may be, shall ensure that nutri10 tious food service programs are established and car11 ried out in such schools in accordance with sub12 section (a) on an equitable basis with nutritious food

13 service programs established and carried out in pub14 lic nonprofit schools in the State.

15 ‘‘(c) AUTHORITY TO USE AMOUNTS FOR OTHER

16 PURPOSES.—

17 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

18 and (3), a State may use not more than 20 percent

19 of amounts received from a grant under this Act for

20 a fiscal year to carry out a State program pursuant

21 to any or all of the following provisions of law:

22 ‘‘(A) Part A of title IV of the Social Secu23 rity Act (42 U.S.C. 601 et seq.).

24 ‘‘(B) Part B of title IV of the Social Secu25 rity Act (42 U.S.C. 621 et seq.).
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1 ‘‘(C) Title XX of the Social Security Act

2 (42 U.S.C. 1397 et seq.).

3 ‘‘(D) The Child Nutrition Act of 1966 (42

4 U.S.C. 1771 et seq.).

5 ‘‘(E) The Child Care and Development

6 Block Grant Act of 1990 (42 U.S.C. 9858 et

7 seq.).

8 ‘‘(2) SUFFICIENT FUNDING DETERMINATION.—

9 Prior to using any amounts received from a grant

10 under this Act for a fiscal year to carry out a State

11 program pursuant to any or all of the provisions of

12 law described in paragraph (1), the appropriate

13 State agency shall make a determination that suffi14 cient amounts will remain available for such fiscal

15 year to carry out this Act.

16 ‘‘(3) RULES GOVERNING USE OF AMOUNTS FOR

17 OTHER PURPOSES.—Amounts paid to the State

18 under a grant under this Act that are used to carry

19 out a State program pursuant to a provision of law

20 specified in paragraph (1) shall not be subject to the

21 requirements of this Act, but shall be subject to the

22 same requirements that apply to Federal funds pro23 vided directly under the provision of law to carry out

24 the program.
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1 ‘‘(d) LIMITATION ON PROVISION OF COMMODITIES

2 TO CERTAIN SCHOOL DISTRICTS, PRIVATE NONPROFIT

3 SCHOOLS, AND DEPARTMENT OF DEFENSE DOMESTIC

4 DEPENDENTS’ SCHOOLS.—

5 ‘‘(1) IN GENERAL.—A State may not require a

6 school district, private nonprofit school, or Depart7 ment of Defense domestic dependents’ school de8 scribed in paragraph (2), except upon the request of

9 such school district, private school, or domestic de10 pendents’ school, as the case may be, to accept com11 modities for use in the food service program of such

12 school district, private school, or domestic depend13 ents’ school in accordance with this section. Such

14 school district, private school, or domestic depend15 ents’ school may continue to receive commodity as16 sistance in the form that it received such assistance

17 as of January 1, 1987.

18 ‘‘(2) SCHOOL DISTRICT, PRIVATE NONPROFIT

19 SCHOOL, AND DEPARTMENT OF DEFENSE DOMESTIC

20 DEPENDENTS’ SCHOOL DESCRIBED.—A school dis21 trict, private nonprofit school, or Department of De22 fense domestic dependents’ school described in this

23 paragraph is a school district, private nonprofit

24 school, or Department of Defense domestic depend25 ents’ school, as the case may be, that as of January
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1 1, 1987, was receiving all cash payments or all com2 modity letters of credit in lieu of entitlement com3 modities for the school lunch program of such school

4 district, private school, or domestic dependents’

5 school under section 18(b) of the National School

6 Lunch Act (42 U.S.C. 1751 et seq.), as such section

7 was in effect on the day before the date of the enact8 ment of the Personal Responsibility Act of 1995.

9 ‘‘(e) PROHIBITION ON PHYSICAL SEGREGATION,

10 OVERT IDENTIFICATION, OR OTHER DISCRIMINATION

11 WITH RESPECT TO CHILDREN ELIGIBLE FOR FREE OR

12 LOW COST MEALS OR SUPPLEMENTS.—In providing as13 sistance to schools to establish and carry out nutritious

14 food service programs in accordance with subsection (a),

15 the State shall ensure that such schools do not—

16 ‘‘(1) physically segregate children eligible to re17 ceive free or low cost meals or supplements on the

18 basis of such eligibility;

19 ‘‘(2) provide for the overt identification of such

20 children by special tokens or tickets, announced or

21 published list of names, or other means; or

22 ‘‘(3) otherwise discriminate against such chil23 dren.
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1 ‘‘SEC. 6. REPORTS.

2 ‘‘The Secretary may provide a grant under this Act

3 to a State for a fiscal year only if the State agrees that

4 it will submit, for such fiscal year, a report to the Sec5 retary describing—

6 ‘‘(1) the number of individuals receiving assist7 ance under the grant;

8 ‘‘(2) the different types of assistance provided

9 to such individuals;

10 ‘‘(3) the total number of meals served to stu11 dents under the grant, including the percentage of

12 such meals served to economically disadvantaged

13 students;

14 ‘‘(4) the extent to which such assistance was ef15 fective in achieving the goals described in section

16 2(b);

17 ‘‘(5) the standards and methods the State is

18 using to ensure the nutritional quality of such assist19 ance, including meals and supplements; and

20 ‘‘(6) any other information which can be rea21 sonably required by the Secretary.

22 ‘‘SEC. 7. PENALTIES.

23 ‘‘(a) PENALTY FOR USE OF AMOUNTS IN VIOLATION

24 OF THIS ACT.—

25 ‘‘(1) IN GENERAL.—The Secretary shall reduce

26 the amounts otherwise payable to a State under a
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1 grant under this Act by any amount paid to the

2 State under this Act which an audit conducted pur3 suant to chapter 75 of title 31, United States Code,

4 finds has been used in violation of this Act.

5 ‘‘(2) LIMITATION.—In carrying out paragraph

6 (1), the Secretary shall not reduce any quarterly

7 payment by more than 25 percent.

8 ‘‘(b) PENALTY FOR FAILURE TO SUBMIT REQUIRED

9 REPORT.—The Secretary shall reduce by 3 percent the

10 amount otherwise payable to a State under a grant under

11 this Act for a fiscal year if the Secretary determines that

12 the State has not submitted the report required by section

13 6 for the immediately preceding fiscal year, within 6

14 months after the end of the immediately preceding fiscal

15 year.

16 ‘‘SEC. 8. ASSISTANCE TO CHILDREN ENROLLED IN PRIVATE

17 NONPROFIT SCHOOLS AND DEPARTMENT OF

18 DEFENSE DOMESTIC DEPENDENTS’ SCHOOLS

19 IN CASE OF RESTRICTIONS ON STATE OR

20 FAILURE BY STATE TO PROVIDE ASSISTANCE.

21 ‘‘(a) IN GENERAL.—If, by reason of any other provi22 sion of law, a State is prohibited from providing assistance

23 from amounts received from a grant under this Act to pri24 vate nonprofit schools or Department of Defense domestic

25 dependents’ schools for a fiscal year to establish and carry
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1 out nutritious food service programs in such schools in ac2 cordance with section 5(a), or the Secretary determines

3 that a State has substantially failed or is unwilling to pro4 vide such assistance to such private nonprofit schools or

5 domestic dependents’ schools for such fiscal year, the Sec6 retary shall, after consultation with appropriate represent7 atives of the State and private nonprofit schools or domes8 tic dependents’ schools, as the case may be, arrange for

9 the provision of such assistance to private nonprofit

10 schools or domestic dependents’ schools in the State for

11 such fiscal year in accordance with the requirements of

12 this Act.

13 ‘‘(b) REDUCTION IN AMOUNT OF STATE GRANT.—

14 If the Secretary arranges for the provision of assistance

15 to private nonprofit schools or Department of Defense do16 mestic dependents’ schools in a State for a fiscal year

17 under subsection (a), the amount of the grant for such

18 State for such fiscal year shall be reduced by the amount

19 of such assistance provided to such private nonprofit

20 schools or domestic dependents’ schools, as the case may

21 be.

22 ‘‘SEC. 9. FOOD SERVICE PROGRAMS FOR DEPARTMENT OF

23 DEFENSE OVERSEAS DEPENDENTS’ SCHOOLS.

24 ‘‘(a) IN GENERAL.—The Secretary shall make avail25 able to the Secretary of Defense for each fiscal year funds
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1 and commodities in an amount determined in accordance

2 with subsection (c) for the purpose of establishing and car3 rying out nutritious food service programs that provide af4 fordable meals and supplements to students attending De5 partment of Defense overseas dependents’ schools.

6 ‘‘(b) REQUIREMENTS.—In carrying out nutritious

7 food service programs under subsection (a), the Secretary

8 of Defense—

9 ‘‘(1) shall ensure that not less than 80 percent

10 of the amount of assistance provided to each school

11 for a fiscal year is used to provide free or low cost

12 meals or supplements to economically disadvantaged

13 children; and

14 ‘‘(2) shall ensure that, with respect to the pro15 vision of meals to students, each such school will—

16 ‘‘(A) implement minimum nutritional re17 quirements for meals provided under this sec18 tion based on the most recent tested nutritional

19 research available, except that—

20 ‘‘(i) such requirements shall not be

21 construed to prohibit the substitution of

22 foods to accommodate the medical or other

23 special dietary needs of individual stu24 dents; and
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1 ‘‘(ii) such requirements shall, at a

2 minimum, be based on—

3 ‘‘(I) the weekly average of the

4 nutrient content of school lunches; or

5 ‘‘(II) such other standards as the

6 Secretary of Agriculture may pre7 scribe; or

8 ‘‘(B) implement the model nutrition stand9 ards developed under section 10 for such meals.

10 ‘‘(c) AMOUNT AND SOURCE OF FUNDS AND COMMOD11 ITIES.—

12 ‘‘(1) AMOUNT.—The Secretary, in consultation

13 with the Secretary of Defense, shall determine the

14 amount of funds and commodities necessary for each

15 fiscal year to establish and carry out nutritious food

16 service programs described in subsection (a).

17 ‘‘(2) SOURCE.—Such amount of funds and com18 modities shall consist of the reservation of the

19 school-based nutrition amount in accordance with

20 section 2(a)(3)(B).

21 ‘‘SEC. 10. MODEL NUTRITION STANDARDS FOR MEALS FOR

22 STUDENTS.

23 ‘‘(a) MODEL NUTRITION STANDARDS.—Not later

24 than April 1, 1996, the Food and Nutrition Board of the

25 Institute of Medicine of the National Academy of Sciences,
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1 in cooperation with nutritionists and directors of programs

2 providing meals to students under this Act, shall develop

3 model nutrition standards for meals provided to such stu4 dents under this Act.

5 ‘‘(b) REPORT TO CONGRESS.—Not later than 1 year

6 after the date on which the model nutrition standards are

7 developed under subsection (a), the Food and Nutrition

8 Board of the Institute of Medicine of the National Acad9 emy of Sciences shall prepare and submit to the Congress

10 a report regarding the efforts of States to implement such

11 model nutrition standards.

12 ‘‘SEC. 11. DEFINITIONS.

13 ‘‘For purposes of this Act:

14 ‘‘(1) DEPARTMENT OF DEFENSE DOMESTIC DE15 PENDENTS’ SCHOOL.—The term ‘Department of De16 fense domestic dependents’ school’ means an elemen17 tary or secondary school established pursuant to sec18 tion 2164 of title 10, United States Code.

19 ‘‘(2) DEPARTMENT OF DEFENSE OVERSEAS DE20 PENDENTS’ SCHOOL.—The term ‘Department of De21 fense overseas dependents’ school’ means a Depart22 ment of Defense dependents’ school which is located

23 outside the United States and the territories or pos24 sessions of the United States.
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1 ‘‘(3) ECONOMICALLY DISADVANTAGED.—The

2 term ‘economically disadvantaged’ means an individ3 ual or a family, as the case may be, whose annual

4 income does not exceed 185 percent of the applicable

5 family size income levels contained in the most re6 cent income poverty guidelines prescribed by the Of7 fice of Management and Budget and based on data

8 from the Bureau of the Census.

9 ‘‘(4) SCHOOL.—The term ‘school’ means a pub10 lic or private nonprofit elementary, intermediate, or

11 secondary school.

12 ‘‘(5) SECRETARY.—The term ‘Secretary’ means

13 the Secretary of Agriculture.

14 ‘‘(6) STATE.—The term ‘State’ means any of

15 the several States, the District of Columbia, the

16 Commonwealth of Puerto Rico, the Commonwealth

17 of the Northern Mariana Islands, American Samoa,

18 Guam, the Virgin Islands, or a tribal organization

19 (as defined in section 4(l) of the Indian Self-Deter20 mination and Education Assistance Act (25 U.S.C.

21 450b(l))).’’.

22 Subchapter C—Miscellaneous Provisions

23 SEC. 14361. REPEALERS.

24 The following Acts are repealed:
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1 (1) The Commodity Distribution Reform Act

2 and WIC Amendments of 1987 (Public Law 100–

3 237; 101 Stat. 1733).

4 (2) The Child Nutrition and WIC Reauthoriza5 tion Act of 1989 (Public Law 101–147; 103 Stat.

6 877).

7 CHAPTER 3—OTHER REPEALERS AND

8 CONFORMING AMENDMENTS

9 SEC. 14371. AMENDMENTS TO LAWS RELATING TO CHILD

10 PROTECTION BLOCK GRANT.

11 (a) ABANDONED INFANTS ASSISTANCE.—

12 (1) REPEALER.—The Abandoned Infants As13 sistance Act of 1988 (42 U.S.C. 670 note) is re14 pealed.

15 (2) CONFORMING AMENDMENT.—Section

16 421(7) of the Domestic Volunteer Service Act of

17 1973 (42 U.S.C. 5061(7)) is amended to read as

18 follows:

19 ‘‘(7) the term ‘boarder baby’ means an infant

20 who is medically cleared for discharge from an

21 acute-care hospital setting, but remains hospitalized

22 because of a lack of appropriate out-of-hospital

23 placement alternatives;’’.

24 (b) CHILD ABUSE PREVENTION AND TREATMENT.—
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1 (1) REPEALER.—The Child Abuse Prevention

2 and Treatment Act (42 U.S.C. 5101 et seq.) is re3 pealed.

4 (2) CONFORMING AMENDMENTS.—The Victims

5 of Crime Act of 1984 (42 U.S.C. 10601 et seq.) is

6 amended—

7 (A) in section 1402—

8 (i) in subsection (d)—

9 (I) by striking paragraph (2);

10 (II) by redesignating paragraphs

11 (3) and (4) as paragraphs (2) and

12 (3), respectively; and

13 (III) in paragraph (2) (as redes14 ignated by subclause (II))—

15 (aa) in subparagraph (A),

16 by striking the semicolon at the

17 end and inserting ‘‘; and’’;

18 (bb) by striking subpara19 graph (B); and

20 (cc) by redesignating sub21 paragraph (C) as subparagraph

22 (B); and

23 (ii) by striking subsection (g); and

24 (B) by striking section 1404A.
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1 (c) ADOPTION OPPORTUNITIES.—The Child Abuse

2 Prevention and Treatment and Adoption Reform Act of

3 1978 (42 U.S.C. 5111 et seq.) is repealed.

4 (d) CRISIS NURSERIES.—The Temporary Child Care

5 for Children with Disabilities and Crisis Nurseries Act of

6 1986 (42 U.S.C. 5117 et seq.) is amended—

7 (1) in the title heading by striking ‘‘AND CRI8 SIS NURSERIES’’;

9 (2) in section 201 by striking ‘‘and Crisis Nurs10 eries’’;

11 (3) in section 202—

12 (A) by striking ‘‘provide: (A) temporary’’

13 and inserting ‘‘to provide temporary’’; and

14 (B) by striking ‘‘children, and (B)’’ and all

15 that follows through the period and inserting

16 ‘‘children.’’;

17 (4) by striking section 204; and

18 (5) in section 205—

19 (A) in subsection (a)—

20 (i) in paragraph (1)(A) by striking

21 ‘‘or 204’’; and

22 (ii) in paragraph (2)—

23 (I) by striking subparagraph (D);

24 and
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1 (II) by redesignating subpara2 graph (E) as subparagraph (D);

3 (B) by striking subsection (b)(3); and

4 (C) in subsection (d)—

5 (i) by striking paragraph (3); and

6 (ii) by redesignating paragraphs (4)

7 and (5) as paragraph (3) and (4), respec8 tively.

9 (e) MISSING CHILDREN’S ASSISTANCE ACT.—The

10 Missing Children’s Assistance Act (42 U.S.C. 5771–5779)

11 is repealed.

12 (f) FAMILY SUPPORT CENTERS.—Subtitle F of title

13 VII of the Stewart B. McKinney Homeless Assistance Act

14 (42 U.S.C. 11481–11489) is repealed.

15 (g) INVESTIGATION AND PROSECUTION OF CHILD

16 ABUSE CASES.—Subtitle A of title II of the Victims of

17 Child Abuse Act of 1990 (42 U.S.C. 13001–13004) is re18 pealed.

19 (h) REPEAL OF FAMILY UNIFICATION PROGRAM.—

20 Subsection (x) of section 8 of the United States Housing

21 Act of 1937 (42 U.S.C. 1437f(x)) is repealed.
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1 CHAPTER 4—RELATED PROVISIONS

2 SEC. 14381. REQUIREMENT THAT DATA RELATING TO THE

3 INCIDENCE OF POVERTY IN THE UNITED

4 STATES BE PUBLISHED AT LEAST EVERY 2

5 YEARS.

6 (a) IN GENERAL.—The Secretary shall, to the extent

7 feasible, produce and publish for each State, county, and

8 local unit of general purpose government for which data

9 have been compiled in the then most recent census of pop10 ulation under section 141(a) of title 13, United States

11 Code, and for each school district, data relating to the in12 cidence of poverty. Such data may be produced by means

13 of sampling, estimation, or any other method that the Sec14 retary determines will produce current, comprehensive,

15 and reliable data.

16 (b) CONTENT; FREQUENCY.—Data under this sec17 tion—

18 (1) shall include—

19 (A) for each school district, the number of

20 children age 5 to 17, inclusive, in families below

21 the poverty level; and

22 (B) for each State and county referred to

23 in subsection (a), the number of individuals age

24 65 or older below the poverty level; and

25 (2) shall be published—
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1 (A) for each State, county, and local unit

2 of general purpose government referred to in

3 subsection (a), in 1996 and at least every sec4 ond year thereafter; and

5 (B) for each school district, in 1998 and at

6 least every second year thereafter.

7 (c) AUTHORITY TO AGGREGATE.—

8 (1) IN GENERAL.—If reliable data could not

9 otherwise be produced, the Secretary may, for pur10 poses of subsection (b)(1)(A), aggregate school dis11 tricts, but only to the extent necessary to achieve re12 liability.

13 (2) INFORMATION RELATING TO USE OF AU14 THORITY.—Any data produced under this subsection

15 shall be appropriately identified and shall be accom16 panied by a detailed explanation as to how and why

17 aggregation was used (including the measures taken

18 to minimize any such aggregation).

19 (d) REPORT TO BE SUBMITTED WHENEVER DATA

20 IS NOT TIMELY PUBLISHED.—If the Secretary is unable

21 to produce and publish the data required under this sec22 tion for any State, county, local unit of general purpose

23 government, or school district in any year specified in sub24 section (b)(2), a report shall be submitted by the Secretary

25 to the President of the Senate and the Speaker of the
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1 House of Representatives, not later than 90 days before

2 the start of the following year, enumerating each govern3 ment or school district excluded and giving the reasons

4 for the exclusion.

5 (e) CRITERIA RELATING TO POVERTY.—In carrying

6 out this section, the Secretary shall use the same criteria

7 relating to poverty as were used in the then most recent

8 census of population under section 141(a) of title 13,

9 United States Code (subject to such periodic adjustments

10 as may be necessary to compensate for inflation and other

11 similar factors).

12 (f) CONSULTATION.—The Secretary shall consult

13 with the Secretary of Education in carrying out the re14 quirements of this section relating to school districts.

15 (g) DEFINITION.—For the purpose of this section,

16 the term ‘‘Secretary’’ means the Secretary of Health and

17 Human Services.

18 (h) AUTHORIZATION OF APPROPRIATIONS.—There

19 are authorized to be appropriated to carry out this section

20 $1,500,000 for each of fiscal years 1996 through 2000.

21 SEC. 14382. DATA ON PROGRAM PARTICIPATION AND OUT22 COMES.

23 (a) IN GENERAL.—The Secretary shall produce data

24 relating to participation in programs authorized by this

25 Act by families and children. Such data may be produced
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1 by means of sampling, estimation, or any other method

2 that the Secretary determines will produce comprehensive

3 and reliable data.

4 (b) CONTENT.—Data under this section shall include,

5 but not be limited to—

6 (1) changes in participation in welfare, health,

7 education, and employment and training programs,

8 for families and children, the duration of such par9 ticipation, and the causes and consequences of any

10 changes in program participation;

11 (2) changes in employment status, income and

12 poverty status, family structure and process, and

13 children’s well-being, over time, for families and chil14 dren participating in Federal programs and, if ap15 propriate, other low-income families and children,

16 and the causes and consequences of such changes;

17 and

18 (3) demographic data, including household com19 position, marital status, relationship of householders,

20 racial and ethnic designation, age, and educational

21 attainment.

22 (c) FREQUENCY.—Data under this section shall re23 flect the period 1993 through 2002, and shall be published

24 as often as practicable during that time, but in any event

25 no later than December 31, 2003.
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1 (d) DEFINITION.—For the purpose of this section,

2 the term ‘‘Secretary’’ means the Secretary of Health and

3 Human Services.

4 (e) AUTHORIZATION OF APPROPRIATIONS.—There

5 are authorized to be appropriated to carry out this section

6 $2,500,000 in fiscal year 1996, $10,000,000 for each of

7 fiscal years 1997 through 2002, and $2,000,000 for fiscal

8 year 2003.

9 CHAPTER 5—GENERAL EFFECTIVE DATE;

10 PRESERVATION OF ACTIONS, OBLIGA11 TIONS, AND RIGHTS

12 SEC. 14391. EFFECTIVE DATE.

13 Except as otherwise provided in this subtitle, this

14 subtitle and the amendments made by this subtitle shall

15 take effect on October 1, 1995.

16 SEC. 14392. APPLICATION OF AMENDMENTS AND REPEAL17 ERS.

18 An amendment or repeal made by this subtitle shall

19 not apply with respect to—

20 (1) powers, duties, functions, rights, claims,

21 penalties, or obligations applicable to financial as22 sistance provided before the effective date of amend23 ment or repeal, as the case may be, under the Act

24 so amended or so repealed; and
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1 (2) administrative actions and proceedings com2 menced before such date, or authorized before such

3 date to be commenced, under such Act.

4 Subtitle D—Restricting Welfare

5 and Public Benefits for Aliens

6 SEC. 14400. STATEMENTS OF NATIONAL POLICY CONCERN7 ING WELFARE AND IMMIGRATION.

8 The Congress makes the following statements con9 cerning national policy with respect to welfare and immi10 gration:

11 (1) Self-sufficiency has been a basic principle of

12 United States immigration law since this country’s

13 earliest immigration statutes.

14 (2) It continues to be the immigration policy of

15 the United States that—

16 (A) aliens within the nation’s borders not

17 depend on public resources to meet their needs,

18 but rather rely on their own capabilities and the

19 resources of their families, their sponsors, and

20 private organizations, and

21 (B) the availability of public benefits not

22 constitute an incentive for immigration to the

23 United States.

24 (3) Despite the principle of self-sufficiency,

25 aliens have been applying for and receiving public
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1 benefits from Federal, State, and local governments

2 at increasing rates.

3 (4) Current eligibility rules for public assistance

4 and unenforceable financial support agreements have

5 proved wholly incapable of assuring that individual

6 aliens not burden the public benefits system.

7 (5) It is a compelling government interest to

8 enact new rules for eligibility and sponsorship agree9 ments in order to assure that aliens be self-reliant

10 in accordance with national immigration policy.

11 (6) It is a compelling government interest to re12 move the incentive for illegal immigration provided

13 by the availability of public benefits.

14 CHAPTER 1—ELIGIBILITY FOR FEDERAL

15 BENEFITS PROGRAMS

16 SEC. 14401. INELIGIBILITY OF ILLEGAL ALIENS FOR CER17 TAIN PUBLIC BENEFITS PROGRAMS.

18 (a) IN GENERAL.—Notwithstanding any other provi19 sion of law and except as provided in subsections (b) and

20 (c), any alien who is not lawfully present in the United

21 States shall not be eligible for any Federal means-tested

22 public benefits program (as defined in section

23 14431(d)(2)).

24 (b) EXCEPTION FOR EMERGENCY ASSISTANCE.—

25 Subsection (a) shall not apply to the provision of noncash,
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1 in-kind emergency assistance (including emergency medi2 cal services).

3 (c) TREATMENT OF HOUSING-RELATED ASSIST4 ANCE.—Subsection (a) shall not apply to any program for

5 housing or community development assistance adminis6 tered by the Secretary of Housing and Urban Develop7 ment, any program under title V of the Housing Act of

8 1949, or any assistance under section 306C of the Consoli9 dated Farm and Rural Development Act, except that in

10 the case of financial assistance (as defined in section

11 214(b) of the Housing and Community Development Act

12 of 1980), the provisions of section 214 of such Act shall

13 apply instead of subsection (a).

14 SEC. 14402. INELIGIBILITY OF NONIMMIGRANTS FOR CER15 TAIN PUBLIC BENEFITS PROGRAMS.

16 (a) IN GENERAL.—Notwithstanding any other provi17 sion of law and except as provided in subsections (b) and

18 (c), any alien who is lawfully present in the United States

19 as a nonimmigrant shall not be eligible for any Federal

20 means-tested public benefits program.

21 (b) EXCEPTIONS.—

22 (1) EMERGENCY ASSISTANCE.—Subsection (a)

23 shall not apply to the provision of non-cash, in-kind

24 emergency assistance (including emergency medical

25 services).
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1 (2) ALIENS GRANTED ASYLUM.—Subsection (a)

2 shall not apply to an alien who is granted asylum

3 under section 208 of the Immigration and National4 ity Act or whose deportation has been withheld

5 under section 243(h) of such Act.

6 (3) TREATMENT OF TEMPORARY AGRICUL7 TURAL WORKERS.—Subsection (a) shall not apply to

8 a nonimmigrant admitted as a temporary agricul9 tural worker under section 101(a)(15)(H)(ii)(a) of

10 the Immigration and Nationality Act or as the

11 spouse or minor child of such a worker under section

12 101(a)(15)(H)(iii) of such Act.

13 (c) TREATMENT OF HOUSING-RELATED ASSIST14 ANCE.—Subsection (a) shall not apply to any program for

15 housing or community development assistance adminis16 tered by the Secretary of Housing and Urban Develop17 ment, any program under title V of the Housing Act of

18 1949, or any assistance under section 306C of the Consoli19 dated Farm and Rural Development Act, except that in

20 the case of financial assistance (as defined in section

21 214(b) of the Housing and Community Development Act

22 of 1980), the provisions of section 214 of such Act shall

23 apply instead of subsection (a).

24 (d) TREATMENT OF ALIENS PAROLED INTO THE

25 UNITED STATES.—An alien who is paroled into the
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1 United States under section 212(d)(5) of the Immigration

2 and Nationality Act for a period of less than 1 year shall

3 be considered, for purposes of this chapter, to be lawfully

4 present in the United States as a nonimmigrant.

5 SEC. 14403. LIMITED ELIGIBILITY OF IMMIGRANTS FOR 5

6 SPECIFIED FEDERAL PUBLIC BENEFITS PRO7 GRAMS.

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law and except as provided in subsection (b), any

10 alien who is lawfully present in the United States shall

11 not be eligible for any of the following Federal means-test12 ed public benefits programs:

13 (1) SSI.—The supplemental security income

14 program under title XVI of the Social Security Act.

15 (2) TEMPORARY ASSISTANCE FOR NEEDY FAMI16 LIES.—The program of block grants to States for

17 temporary assistance for needy families under part

18 A of title IV of the Social Security Act.

19 (3) SOCIAL SERVICES BLOCK GRANT.—The pro20 gram of block grants to States for social services

21 under title XX of the Social Security Act.

22 (4) MEDICAID.—The program of medical assist23 ance under title XIX of the Social Security Act.
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1 (5) CONSOLIDATED FOOD ASSISTANCE PRO2 GRAM.—The consolidated program of food assistance

3 under chapter 2 of subtitle E of this title.

4 (b) EXCEPTIONS.—

5 (1) TIME-LIMITED EXCEPTION FOR REFU6 GEES.—Subsection (a) shall not apply to an alien

7 admitted to the United States as a refugee under

8 section 207 of the Immigration and Nationality Act

9 until 5 years after the date of such alien’s arrival

10 into the United States.

11 (2) CERTAIN LONG-TERM, PERMANENT RESI12 DENT, AGED ALIENS.—Subsection (a) shall not

13 apply to an alien who—

14 (A) has been lawfully admitted to the

15 United States for permanent residence;

16 (B) is over 75 years of age; and

17 (C) has resided in the United States for at

18 least 5 years.

19 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—

20 Subsection (a) shall not apply to an alien who is

21 lawfully residing in any State (or any territory or

22 possession of the United States) and is—

23 (A) a veteran (as defined in section 101 of

24 title 38, United States Code) with a discharge

25 characterized as an honorable discharge,
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1 (B) on active duty (other than active duty

2 for training) in the Armed Forces of the United

3 States, or

4 (C) the spouse or unmarried dependent

5 child of an individual described in subparagraph

6 (A) or (B).

7 Subparagraph (A) shall not apply in the case of a

8 veteran who has been separated from military serv9 ice on account of alienage.

10 (4) EMERGENCY ASSISTANCE.—Subsection (a)

11 shall not apply to the provision of non-cash, in-kind

12 emergency assistance (including emergency medical

13 services).

14 (5) TRANSITION FOR CURRENT BENE15 FICIARIES.—Subsection (a) shall not apply to the eli16 gibility of an alien for a program until 1 year after

17 the date of the enactment of this Act if, on such

18 date of enactment, the alien is lawfully residing in

19 any State or any territory or possession of the

20 United States and is eligible for the program.

21 (6) CERTAIN PERMANENT RESIDENT AND DIS22 ABLED ALIENS.—Subsection (a) shall not apply to

23 an alien who—

24 (A) has been lawfully admitted to the

25 United States for permanent residence; and
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1 (B) is unable because of physical or devel2 opmental disability or mental impairment (in3 cluding Alzheimer’s disease) to comply with the

4 naturalization requirements of section 312(a) of

5 the Immigration and Naturalization Act.

6 SEC. 14404. NOTIFICATION.

7 Each Federal agency that administers a program to

8 which section 14401, 14402, or 14403 applies shall, di9 rectly or through the States, post information and provide

10 general notification to the public and to program recipi11 ents of the changes regarding eligibility for any such pro12 gram pursuant to this chapter.

13 CHAPTER 2—ELIGIBILITY FOR STATE AND

14 LOCAL PUBLIC BENEFITS PROGRAMS

15 SEC. 14411. INELIGIBILITY OF ILLEGAL ALIENS FOR STATE

16 AND LOCAL PUBLIC BENEFITS PROGRAMS.

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of law and except as otherwise provided in this sec19 tion, no alien who is not lawfully present in the United

20 States (as determined in accordance with regulations of

21 the Attorney General) shall be eligible for any State

22 means-tested public benefits program (as defined in sec23 tion 14431(d)(3)).

24 (b) EXCEPTION FOR EMERGENCY ASSISTANCE.—

25 Subsection (a) shall not apply to the provision of non-cash,
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1 in-kind emergency assistance (including emergency medi2 cal services).

3 SEC. 14412. INELIGIBILITY OF NONIMMIGRANTS FOR STATE

4 AND LOCAL PUBLIC BENEFITS PROGRAMS.

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law and except as otherwise provided in this sec7 tion, no alien who is lawfully present in the United States

8 as a nonimmigrant shall be eligible for any State means9 tested public benefits program (as defined in section

10 14431(d)(3)).

11 (b) EXCEPTIONS.—

12 (1) EMERGENCY ASSISTANCE.—The limitations

13 under subsection (a) shall not apply to the provision

14 of non-cash, in-kind emergency assistance (including

15 emergency medical services).

16 (2) ALIENS GRANTED ASYLUM.—Subsection (a)

17 shall not apply to an alien who is granted asylum

18 under section 208 of the Immigration and National19 ity Act or whose deportation has been withheld

20 under section 243(h) of such Act.

21 (3) TREATMENT OF TEMPORARY AGRICUL22 TURAL WORKERS.—Subsection (a) shall not apply to

23 a nonimmigrant admitted as a temporary agricul24 tural worker under section 101(a)(15)(H)(ii)(a) of

25 the Immigration and Nationality Act or as the
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1 spouse or minor child of such a worker under section

2 101(a)(15)(H)(iii) of such Act.

3 (c) TREATMENT OF ALIENS PAROLED INTO THE

4 UNITED STATES.—An alien who is paroled into the

5 United States under section 212(d)(5) of the Immigration

6 and Nationality Act for a period of less than 1 year shall

7 be considered, for purposes of this chapter, to be lawfully

8 present in the United States as a nonimmigrant.

9 SEC. 14413. STATE AUTHORITY TO LIMIT ELIGIBILITY OF

10 IMMIGRANTS FOR STATE AND LOCAL MEANS11 TESTED PUBLIC BENEFITS PROGRAMS.

12 (a) IN GENERAL.—Notwithstanding any other provi13 sion of law and except as otherwise provided in this section

14 or section 14412, a State is authorized to determine eligi15 bility requirements for aliens who are lawfully present in

16 the United States for any State means-tested public bene17 fits program.

18 (b) EXCEPTIONS.—

19 (1) TIME-LIMITED EXCEPTION FOR REFU20 GEES.—The authority under subsection (a) shall not

21 apply to an alien admitted to the United States as

22 a refugee under section 207 of the Immigration and

23 Nationality Act until 5 years after the date of such

24 alien’s arrival into the United States.
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1 (2) CERTAIN LONG-TERM, PERMANENT RESI2 DENT, AGED ALIENS.—The authority under sub3 section (a) shall not apply to an alien who—

4 (A) has been lawfully admitted to the

5 United States for permanent residence;

6 (B) is over 75 years of age; and

7 (C) has resided in the United States for at

8 least 5 years.

9 (3) VETERAN AND ACTIVE DUTY EXCEPTION.—

10 The authority under subsection (a) shall not apply

11 to an alien who is lawfully residing in any State (or

12 any territory or possession of the United States) and

13 is—

14 (A) a veteran (as defined in section 101 of

15 title 38, United States Code) with a discharge

16 characterized as an honorable discharge,

17 (B) on active duty (other than active duty

18 for training) in the Armed Forces of the United

19 States, or

20 (C) the spouse or unmarried dependent

21 child of an individual described in subparagraph

22 (A) or (B).

23 Subparagraph (A) shall not apply in the case of a

24 veteran who has been separated from military serv25 ice on account of alienage.
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1 (4) EMERGENCY ASSISTANCE.—The authority

2 under subsection (a) shall not apply to the provision

3 of non-cash, in-kind emergency assistance (including

4 emergency medical services).

5 (5) TRANSITION.—The authority under sub6 section (a) shall not apply to eligibility of an alien

7 for a State means-tested public benefits program

8 until 1 year after the date of the enactment of this

9 Act if, on such date of enactment, the alien is law10 fully present in the United States and is eligible for

11 benefits under the program. Nothing in the previous

12 sentence is intended to address alien eligibility for

13 such a program before the date of the enactment of

14 this Act.

15 CHAPTER 3—ATTRIBUTION OF INCOME

16 AND AFFIDAVITS OF SUPPORT

17 SEC. 14421. ATTRIBUTION OF SPONSOR’S INCOME AND RE18 SOURCES TO FAMILY-SPONSORED IMMI19 GRANTS.

20 (a) IN GENERAL.—Notwithstanding any other provi21 sion of law and except as provided in subsection (c), in

22 determining the eligibility and the amount of benefits of

23 an alien for any means-tested public benefits program (as

24 defined in section 14431(d)) the income and resources of

25 the alien shall be deemed to include—
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1 (1) the income and resources of any person who

2 executed an affidavit of support pursuant to section

3 213A of the Immigration and Nationality Act (as

4 added by section 14422) in behalf of such alien, and

5 (2) the income and resources of the spouse (if

6 any) of the person.

7 (b) APPLICATION.—Subsection (a) shall apply with

8 respect to an alien until such time as the alien achieves

9 United States citizenship through naturalization pursuant

10 to chapter 2 of title III of the Immigration and National11 ity Act.

12 (c) EXCEPTION FOR HOUSING-RELATED ASSIST13 ANCE.—Subsection (a) shall not apply to any program for

14 housing or community development assistance adminis15 tered by the Secretary of Housing and Urban Develop16 ment, any program under title V of the Housing Act of

17 1949, or any assistance under section 306C of the Consoli18 dated Farm and Rural Development Act.

19 SEC. 14422. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF

20 SUPPORT.

21 (a) IN GENERAL.—Title II of the Immigration and

22 Nationality Act is amended by inserting after section 213

23 the following new section:

24 ‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT

25 ‘‘SEC. 213A. (a) ENFORCEABILITY.—No affidavit of

26 support may be accepted by the Attorney General or by
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1 any consular officer to establish that an alien is not ex2 cludable as a public charge under section 212(a)(4) unless

3 such affidavit is executed as a contract—

4 ‘‘(1) which is legally enforceable against the

5 sponsor by the Federal Government and by any

6 State (or any political subdivision of such State)

7 which provides any means-tested public benefits pro8 gram, but not later than 10 years after the alien last

9 receives any such benefit; and

10 ‘‘(2) in which the sponsor agrees to submit to

11 the jurisdiction of any Federal or State court for the

12 purpose of actions brought under subsection (e)(2).

13 Such contract shall be enforceable with respect to benefits

14 provided to the alien until such time as the alien achieves

15 United States citizenship through naturalization pursuant

16 to chapter 2 of title III.

17 ‘‘(b) FORMS.—Not later than 90 days after the date

18 of enactment of this section, the Attorney General, in con19 sultation with the Secretary of State and the Secretary

20 of Health and Human Services, shall formulate an affida21 vit of support consistent with the provisions of this

22 section.

23 ‘‘(c) STATUTORY CONSTRUCTION.—Nothing in this

24 section shall be construed to grant third party beneficiary
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1 rights to any sponsored alien under an affidavit of sup2 port.

3 ‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—(1)

4 The sponsor shall notify the Federal Government and the

5 State in which the sponsored alien is currently resident

6 within 30 days of any change of address of the sponsor

7 during the period specified in subsection (a)(1).

8 ‘‘(2) Any person subject to the requirement of para9 graph (1) who fails to satisfy such requirement shall be

10 subject to a civil penalty of—

11 ‘‘(A) not less than $250 or more than $2,000,

12 or

13 ‘‘(B) if such failure occurs with knowledge that

14 the sponsored alien has received any benefit under

15 any means-tested public benefits program, not less

16 than $2,000 or more than $5,000.

17 ‘‘(e) REIMBURSEMENT OF GOVERNMENT EX18 PENSES.—(1)(A) Upon notification that a sponsored alien

19 has received any benefit under any means-tested public

20 benefits program, the appropriate Federal, State, or local

21 official shall request reimbursement by the sponsor in the

22 amount of such assistance.

23 ‘‘(B) The Attorney General, in consultation with the

24 Secretary of Health and Human Services, shall prescribe
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1 such regulations as may be necessary to carry out sub2 paragraph (A).

3 ‘‘(2) If within 45 days after requesting reimburse4 ment, the appropriate Federal, State, or local agency has

5 not received a response from the sponsor indicating a will6 ingness to commence payments, an action may be brought

7 against the sponsor pursuant to the affidavit of support.

8 ‘‘(3) If the sponsor fails to abide by the repayment

9 terms established by such agency, the agency may, within

10 60 days of such failure, bring an action against the spon11 sor pursuant to the affidavit of support.

12 ‘‘(4) No cause of action may be brought under this

13 subsection later than 10 years after the alien last received

14 any benefit under any means-tested public benefits pro15 gram.

16 ‘‘(f) DEFINITIONS.—For the purposes of this sec17 tion—

18 ‘‘(1) SPONSOR.—The term ‘sponsor’ means an

19 individual who—

20 ‘‘(A) is a citizen or national of the United

21 States or an alien who is lawfully admitted to

22 the United States for permanent residence;

23 ‘‘(B) is 18 years of age or over; and

24 ‘‘(C) is domiciled in any State.
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1 ‘‘(2) MEANS-TESTED PUBLIC BENEFITS PRO2 GRAM.—The term ‘means-tested public benefits pro3 gram’ means a program of public benefits (including

4 cash, medical, housing, and food assistance and so5 cial services) of the Federal Government or of a

6 State or political subdivision of a State in which the

7 eligibility of an individual, household, or family eligi8 bility unit for benefits under the program, or the

9 amount of such benefits, or both are determined on

10 the basis of income, resources, or financial need of

11 the individual, household, or unit.’’.

12 (b) CLERICAL AMENDMENT.—The table of contents

13 of such Act is amended by inserting after the item relating

14 to section 213 the following:

‘‘Sec. 213A. Requirements for sponsor’s affidavit of support.’’.

15 (c) EFFECTIVE DATE.—Subsection (a) of section

16 213A of the Immigration and Nationality Act, as inserted

17 by subsection (a) of this section, shall apply to affidavits

18 of support executed on or after a date specified by the

19 Attorney General, which date shall be not earlier than 60

20 days (and not later than 90 days) after the date the Attor21 ney General formulates the form for such affidavits under

22 subsection (b) of such section.
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1 CHAPTER 4—GENERAL PROVISIONS

2 SEC. 14431. DEFINITIONS.

3 (a) IN GENERAL.—Except as otherwise provided in

4 this section, the terms used in this subtitle have the same

5 meaning given such terms in section 101(a) of the Immi6 gration and Nationality Act.

7 (b) LAWFUL PRESENCE.—For purposes of this sub8 title, the determination of whether an alien is lawfully

9 present in the United States shall be made in accordance

10 with regulations of the Attorney General. An alien shall

11 not be considered to be lawfully present in the United

12 States for purposes of this subtitle merely because the

13 alien may be considered to be permanently residing in the

14 United States under color of law for purposes of any par15 ticular program.

16 (c) STATE.—As used in this subtitle, the term

17 ‘‘State’’ includes the District of Columbia, Puerto Rico,

18 the Virgin Islands, Guam, the Northern Mariana Islands,

19 and American Samoa.

20 (d) PUBLIC BENEFITS PROGRAMS.—As used in this

21 subtitle—

22 (1) MEANS-TESTED PROGRAM.—The term

23 ‘‘means-tested public benefits program’’ means a

24 program of public benefits (including cash, medical,

25 housing, and food assistance and social services) of
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1 the Federal Government or of a State or political

2 subdivision of a State in which the eligibility of an

3 individual, household, or family eligibility unit for

4 benefits under the program, or the amount of such

5 benefits, or both are determined on the basis of in6 come, resources, or financial need of the individual,

7 household, or unit.

8 (2) FEDERAL MEANS-TESTED PUBLIC BENE9 FITS PROGRAM.—The term ‘‘Federal means-tested

10 public benefits program’’ means a means-tested pub11 lic benefits program of (or contributed to by) the

12 Federal Government and under which the Federal

13 Government has specified standards for eligibility

14 and includes the programs specified in section

15 14403(a).

16 (3) STATE MEANS-TESTED PUBLIC BENEFITS

17 PROGRAM.—The term ‘‘State means-tested public

18 benefits program’’ means a means-tested public ben19 efits program of a State or political subdivision of a

20 State under which the State or political subdivision

21 specifies the standards for eligibility, and does not

22 include any Federal means-tested public benefits

23 program.
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1 SEC. 14432. CONSTRUCTION.

2 Nothing in this subtitle shall be construed as address3 ing alien eligibility for governmental programs that are

4 not means-tested public benefits programs.

5 CHAPTER 5—CONFORMING AMENDMENTS

6 SEC. 14441. CONFORMING AMENDMENTS RELATING TO AS7 SISTED HOUSING.

8 (a) LIMITATIONS ON ASSISTANCE.—Section 214 of

9 the Housing and Community Development Act of 1980

10 (42 U.S.C. 1436a) is amended—

11 (1) by striking ‘‘Secretary of Housing and

12 Urban Development’’ each place it appears and in13 serting ‘‘applicable Secretary’’;

14 (2) in subsection (b), by inserting after ‘‘Na15 tional Housing Act,’’ the following: ‘‘the direct loan

16 program under section 502 of the Housing Act of

17 1949 or section 502(c)(5)(D), 504, 521(a)(2)(A), or

18 542 of such Act, subtitle A of title III of the Cran19 ston-Gonzalez National Affordable Housing Act,’’;

20 (3) in paragraphs (2) through (6) of subsection

21 (d), by striking ‘‘Secretary’’ each place it appears

22 and inserting ‘‘applicable Secretary’’;

23 (4) in subsection (d), in the matter following

24 paragraph (6), by striking ‘‘the term ‘Secretary’’’

25 and inserting ‘‘the term ‘applicable Secretary’’’; and
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1 (5) by adding at the end the following new sub2 section:

3 ‘‘(h) For purposes of this section, the term ‘applicable

4 Secretary’ means—

5 ‘‘(1) the Secretary of Housing and Urban De6 velopment, with respect to financial assistance ad7 ministered by such Secretary and financial assist8 ance under subtitle A of title III of the Cranston9 Gonzalez National Affordable Housing Act; and

10 ‘‘(2) the Secretary of Agriculture, with respect

11 to financial assistance administered by such Sec12 retary.’’.

13 (b) CONFORMING AMENDMENTS.—Section 501(h) of

14 the Housing Act of 1949 (42 U.S.C. 1471(h)) is amend15 ed—

16 (1) by striking ‘‘(1)’’;

17 (2) by striking ‘‘by the Secretary of Housing

18 and Urban Development’’; and

19 (3) by striking paragraph (2).

20 Subtitle E—Food Stamp Reform

21 and Commodity Distribution

22 SEC. 14501. SHORT TITLE.

23 This subtitle may be cited as the ‘‘Food Stamp Re24 form and Commodity Distribution Act’’.
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1 CHAPTER 1—COMMODITY DISTRIBUTION

2 PROVISIONS

3 SEC. 14511. SHORT TITLE.

4 This chapter may be cited as the ‘‘Commodity Dis5 tribution Act of 1995’’.

6 SEC. 14512. AVAILABILITY OF COMMODITIES.

7 (a) Notwithstanding any other provision of law, the

8 Secretary of Agriculture (hereinafter in this chapter re9 ferred to as the ‘‘Secretary’’) is authorized during fiscal

10 years 1996 through 2000 to purchase a variety of nutri11 tious and useful commodities and distribute such commod12 ities to the States for distribution in accordance with this

13 chapter.

14 (b) In addition to the commodities described in sub15 section (a), the Secretary may expend funds made avail16 able to carry out section 32 of the Act of August 24, 1935

17 (7 U.S.C. 612c), which are not expended or needed to

18 carry out such sections, to purchase, process, and distrib19 ute commodities of the types customarily purchased under

20 such section to the States for distribution in accordance

21 with this chapter.

22 (c) In addition to the commodities described in sub23 sections (a) and (b), agricultural commodities and the

24 products thereof made available under clause (2) of the

25 second sentence of section 32 of the Act of August 24,
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1 1935 (7 U.S.C. 612c), may be made available by the Sec2 retary to the States for distribution in accordance with

3 this chapter.

4 (d) In addition to the commodities described in sub5 sections (a), (b), and (c), commodities acquired by the

6 Commodity Credit Corporation that the Secretary deter7 mines, in the discretion of the Secretary, are in excess of

8 quantities needed to—

9 (1) carry out other domestic donation pro10 grams;

11 (2) meet other domestic obligations;

12 (3) meet international market development and

13 food aid commitments; and

14 (4) carry out the farm price and income sta15 bilization purposes of the Agricultural Adjustment

16 Act of 1938, the Agricultural Act of 1949, and the

17 Commodity Credit Corporation Charter Act;

18 shall be made available by the Secretary, without charge

19 or credit for such commodities, to the States for distribu20 tion in accordance with this chapter.

21 (e) During each fiscal year, the types, varieties, and

22 amounts of commodities to be purchased under this chap23 ter shall be determined by the Secretary. In purchasing

24 such commodities, except those commodities purchased

25 pursuant to section 14520, the Secretary shall, to the ex-
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1 tent practicable and appropriate, make purchases based

2 on—

3 (1) agricultural market conditions;

4 (2) the preferences and needs of States and dis5 tributing agencies; and

6 (3) the preferences of the recipients.

7 SEC. 14513. STATE, LOCAL AND PRIVATE

8 SUPPLEMENTATION OF COMMODITIES.

9 (a) The Secretary shall establish procedures under

10 which State and local agencies, recipient agencies, or any

11 other entity or person may supplement the commodities

12 distributed under this chapter for use by recipient agen13 cies with nutritious and wholesome commodities that such

14 entities or persons donate for distribution, in all or part

15 of the State, in addition to the commodities otherwise

16 made available under this chapter.

17 (b) States and eligible recipient agencies may use—

18 (1) the funds appropriated for administrative

19 cost under section 14519(b);

20 (2) equipment, structures, vehicles, and all

21 other facilities involved in the storage, handling, or

22 distribution of commodities made available under

23 this chapter; and

24 (3) the personnel, both paid or volunteer, in25 volved in such storage, handling, or distribution;
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1 to store, handle or distribute commodities donated for use

2 under subsection (a).

3 (c) States and recipient agencies shall continue, to

4 the maximum extent practical, to use volunteer workers,

5 and commodities and other foodstuffs donated by chari6 table and other organizations, in the distribution of com7 modities under this chapter.

8 SEC. 14514. STATE PLAN.

9 (a) A State seeking to receive commodities under this

10 chapter shall submit a plan of operation and administra11 tion every four years to the Secretary for approval. The

12 plan may be amended at any time, with the approval of

13 the Secretary.

14 (b) The State plan, at a minimum, shall—

15 (1) designate the State agency responsible for

16 distributing the commodities received under this

17 chapter;

18 (2) set forth a plan of operation and adminis19 tration to expeditiously distribute commodities under

20 this chapter in quantities requested to eligible recipi21 ent agencies in accordance with sections 14516 and

22 14520;

23 (3) set forth the standards of eligibility for re24 cipient agencies; and
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1 (4) set forth the standards of eligibility for indi2 vidual or household recipients of commodities, which

3 at minimum shall require—

4 (A) individuals or households to be com5 prised of needy persons; and

6 (B) individual or household members to be

7 residing in the geographic location served by

8 the distributing agency at the time of applica9 tion for assistance.

10 (c) The Secretary shall encourage each State receiv11 ing commodities under this chapter to establish a State

12 advisory board consisting of representatives of all inter13 ested entities, both public and private, in the distribution

14 of commodities received under this chapter in the State.

15 (d) A State agency receiving commodities under this

16 chapter may—

17 (1)(A) enter into cooperative agreements with

18 State agencies of other States to jointly provide

19 commodities received under this chapter to eligible

20 recipient agencies that serve needy persons in a sin21 gle geographical area which includes such States; or

22 (B) transfer commodities received under this

23 chapter to any such eligible recipient agency in the

24 other State under such agreement; and
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1 (2) advise the Secretary of an agreement en2 tered into under this subsection and the transfer of

3 commodities made pursuant to such agreement.

4 SEC. 14515. ALLOCATION OF COMMODITIES TO STATES.

5 (a) In each fiscal year, except for those commodities

6 purchased under section 14520, the Secretary shall allo7 cate the commodities distributed under this chapter as

8 follows:

9 (1) 60 percent of the such total value of com10 modities shall be allocated in a manner such that the

11 value of commodities allocated to each State bears

12 the same ratio to 60 percent of such total value as

13 the number of persons in households within the

14 State having incomes below the poverty line bears to

15 the total number of persons in households within all

16 States having incomes below such poverty line. Each

17 State shall receive the value of commodities allocated

18 under this paragraph.

19 (2) 40 percent of such total value of commod20 ities shall be allocated in a manner such that the

21 value of commodities allocated to each State bears

22 the same ratio to 40 percent of such total value as

23 the average monthly number of unemployed persons

24 within the State bears to the average monthly num25 ber of unemployed persons within all States during
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1 the same fiscal year. Each State shall receive the

2 value of commodities allocated to the State under

3 this paragraph.

4 (b)(1) The Secretary shall notify each State of the

5 amount of commodities that such State is allotted to re6 ceive under subsection (a) or this subsection, if applicable.

7 Each State shall promptly notify the Secretary if such

8 State determines that it will not accept any or all of the

9 commodities made available under such allocation. On

10 such a notification by a State, the Secretary shall reallo11 cate and distribute such commodities as the Secretary

12 deems appropriate and equitable. The Secretary shall fur13 ther establish procedures to permit States to decline to

14 receive portions of such allocation during each fiscal year

15 as the State determines is appropriate and the Secretary

16 shall reallocate and distribute such allocation as the Sec17 retary deems appropriate and equitable.

18 (2) In the event of any drought, flood, hurricane, or

19 other natural disaster affecting substantial numbers of

20 persons in a State, county, or parish, the Secretary may

21 request that States unaffected by such a disaster consider

22 assisting affected States by allowing the Secretary to re23 allocate commodities from such unaffected State to States

24 containing areas adversely affected by the disaster.
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1 (c) Purchases of commodities under this chapter shall

2 be made by the Secretary at such times and under such

3 conditions as the Secretary determines appropriate within

4 each fiscal year. All commodities so purchased for each

5 such fiscal year shall be delivered at reasonable intervals

6 to States based on the allocations and reallocations made

7 under subsections (a) and (b), and or carry out section

8 14520, not later than December 31 of the following fiscal

9 year.

10 SEC. 14516. PRIORITY SYSTEM FOR STATE DISTRIBUTION

11 OF COMMODITIES.

12 (a) In distributing the commodities allocated under

13 subsections (a) and (b) of section 14515, the State agency,

14 under procedures determined by the State agency, shall

15 offer, or otherwise make available, its full allocation of

16 commodities for distribution to emergency feeding organi17 zations.

18 (b) If the State agency determines that the State will

19 not exhaust the commodities allocated under subsections

20 (a) and (b) of section 14515 through distribution to orga21 nizations referred to in subsection (a), its remaining allo22 cation of commodities shall be distributed to charitable in23 stitutions described in section 14523(3) not receiving com24 modities under subsection (a).
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1 (c) If the State agency determines that the State will

2 not exhaust the commodities allocated under subsections

3 (a) and (b) of section 14515 through distribution to orga4 nizations referred to in subsections (a) and (b), its remain5 ing allocation of commodities shall be distributed to any

6 eligible recipient agency not receiving commodities under

7 subsections (a) and (b).

8 SEC. 14517. INITIAL PROCESSING COSTS.

9 The Secretary may use funds of the Commodity

10 Credit Corporation to pay the costs of initial processing

11 and packaging of commodities to be distributed under this

12 chapter into forms and in quantities suitable, as deter13 mined by the Secretary, for use by the individual house14 holds or eligible recipient agencies, as applicable. The Sec15 retary may pay such costs in the form of Corporation16 owned commodities equal in value to such costs. The Sec17 retary shall ensure that any such payments in kind will

18 not displace commercial sales of such commodities.

19 SEC. 14518. ASSURANCES; ANTICIPATED USE.

20 (a) The Secretary shall take such precautions as the

21 Secretary deems necessary to ensure that commodities

22 made available under this chapter will not displace com23 mercial sales of such commodities or the products thereof.

24 The Secretary shall submit to the Committee on Agri25 culture of the House of Representatives and the Commit-
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1 tee on Agriculture, Nutrition, and Forestry of the Senate

2 by December 31, 1997, and not less than every two years

3 thereafter, a report as to whether and to what extent such

4 displacements or substitutions are occurring.

5 (b) The Secretary shall determine that commodities

6 provided under this chapter shall be purchased and dis7 tributed only in quantities that can be consumed without

8 waste. No eligible recipient agency may receive commod9 ities under this chapter in excess of anticipated use, based

10 on inventory records and controls, or in excess of its ability

11 to accept and store such commodities.

12 SEC. 14519. AUTHORIZATION OF APPROPRIATIONS.

13 (a) PURCHASE OF COMMODITIES.—To carry out this

14 chapter there are authorized to be appropriated

15 $260,000,000 for each of the fiscal years 1996 through

16 2000 to purchase, process, and distribute commodities to

17 the States in accordance with this chapter.

18 (b) ADMINISTRATIVE FUNDS.—

19 (1) There are authorized to be appropriated

20 $40,000,000 for each of the fiscal years 1996

21 through 2000 for the Secretary to make available to

22 the States for State and local payments for costs as23 sociated with the distribution of commodities by eli24 gible recipient agencies under this chapter, excluding

25 costs associated with the distribution of those com-
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1 modities distributed under section 14520. Funds ap2 propriated under this paragraph for any fiscal year

3 shall be allocated to the States on an advance basis

4 dividing such funds among the States in the same

5 proportions as the commodities distributed under

6 this chapter for such fiscal year are allocated among

7 the States. If a State agency is unable to use all of

8 the funds so allocated to it, the Secretary shall re9 allocate such unused funds among the other States

10 in a manner the Secretary deems appropriate and

11 equitable.

12 (2)(A) A State shall make available in each fis13 cal year to eligible recipient agencies in the State

14 not less than 40 percent of the funds received by the

15 State under paragraph (1) for such fiscal year, as

16 necessary to pay for, or provide advance payments

17 to cover, the allowable expenses of eligible recipient

18 agencies for distributing commodities to needy per19 sons, but only to the extent such expenses are actu20 ally so incurred by such recipient agencies.

21 (B) As used in this paragraph, the term ‘‘allow22 able expenses’’ includes—

23 (i) costs of transporting, storing, handling,

24 repackaging, processing, and distributing com-
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•HR 1923 IH

1 modities incurred after such commodities are

2 received by eligible recipient agencies;

3 (ii) costs associated with determinations of

4 eligibility, verification, and documentation;

5 (iii) costs of providing information to per6 sons receiving commodities under this chapter

7 concerning the appropriate storage and prepa8 ration of such commodities; and

9 (iv) costs of recordkeeping, auditing, and

10 other administrative procedures required for

11 participation in the program under this chapter.

12 (C) If a State makes a payment, using State

13 funds, to cover allowable expenses of eligible recipi14 ent agencies, the amount of such payment shall be

15 counted toward the amount a State must make

16 available for allowable expenses of recipient agencies

17 under this paragraph.

18 (3) States to which funds are allocated for a

19 fiscal year under this subsection shall submit finan20 cial reports to the Secretary, on a regular basis, as

21 to the use of such funds. No such funds may be

22 used by States or eligible recipient agencies for costs

23 other than those involved in covering the expenses

24 related to the distribution of commodities by eligible

25 recipient agencies.
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1 (4)(A) Except as provided in subparagraph (B),

2 to be eligible to receive funds under this subsection,

3 a State shall provide in cash or in kind (according

4 to procedures approved by the Secretary for certify5 ing these in-kind contributions) from non-Federal

6 sources a contribution equal to the difference be7 tween—

8 (i) the amount of such funds so received;

9 and

10 (ii) any part of the amount allocated to the

11 State and paid by the State—

12 (I) to eligible recipient agencies; or

13 (II) for the allowable expenses of such

14 recipient agencies; for use in carrying out

15 this chapter.

16 (B) Funds allocated to a State under this sec17 tion may, upon State request, be allocated before

18 States satisfy the matching requirement specified in

19 subparagraph (A), based on the estimated contribu20 tion required. The Secretary shall periodically rec21 oncile estimated and actual contributions and adjust

22 allocations to the State to correct for overpayments

23 and underpayments.
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•HR 1923 IH

1 (C) Any funds distributed for administrative

2 costs under section 14520(b) shall not be covered by

3 this paragraph.

4 (5) States may not charge for commodities

5 made available to eligible recipient agencies, and

6 may not pass on to such recipient agencies the cost

7 of any matching requirements, under this chapter.

8 (c) The value of the commodities made available

9 under subsections (c) and (d) of section 14512, and the

10 funds of the Commodity Credit Corporation used to pay

11 the costs of initial processing, packaging (including forms

12 suitable for home use), and delivering commodities to the

13 States shall not be charged against appropriations author14 ized by this section.

15 SEC. 14520. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

16 (a) From the funds appropriated under section

17 14519(a), $94,500,000 shall be used for each fiscal year

18 to purchase and distribute commodities to supplemental

19 feeding programs serving woman, infants, and children or

20 elderly individuals (hereinafter in this section referred to

21 as the ‘‘commodity supplemental food program’’), or serv22 ing both groups wherever located.

23 (b) Not more than 20 percent of the funds made

24 available under subsection (a) shall be made available to

25 the States for State and local payments of administrative
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•HR 1923 IH

1 costs associated with the distribution of commodities by

2 eligible recipient agencies under this section. Administra3 tive costs for the purposes of the commodity supplemental

4 food program shall include, but not be limited to, expenses

5 for information and referral, operation, monitoring, nutri6 tion education, start-up costs, and general administration,

7 including staff, warehouse and transportation personnel,

8 insurance, and administration of the State or local office.

9 (c)(1) During each fiscal year the commodity supple10 mental food program is in operation, the types, varieties,

11 and amounts of commodities to be purchased under this

12 section shall be determined by the Secretary, but, if the

13 Secretary proposes to make any significant changes in the

14 types, varieties, or amounts from those that were available

15 or were planned at the beginning of the fiscal year the

16 Secretary shall report such changes before implementation

17 to the Committee on Agriculture of the House of Rep18 resentatives and the Committee on Agriculture, Nutrition,

19 and Forestry of the Senate.

20 (2) Notwithstanding any other provision of law, the

21 Commodity Credit Corporation shall, to the extent that

22 the Commodity Credit Corporation inventory levels per23 mit, provide not less than 9,000,000 pounds of cheese and

24 not less than 4,000,000 pounds of nonfat dry milk in each

25 of the fiscal years 1996 through 2000 to the Secretary.
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•HR 1923 IH

1 The Secretary shall use such amounts of cheese and non2 fat dry milk to carry out the commodity supplemental food

3 program before the end of each fiscal year.

4 (d) The Secretary shall, in each fiscal year, approve

5 applications of additional sites for the program, including

6 sites that serve only elderly persons, in areas in which the

7 program currently does not operate, to the full extent that

8 applications can be approved within the appropriations

9 available for the program for the fiscal year and without

10 reducing actual participation levels (including participa11 tion of elderly persons under subsection (e)) in areas in

12 which the program is in effect.

13 (e) If a local agency that administers the commodity

14 supplemental food program determines that the amount

15 of funds made available to the agency to carry out this

16 section exceeds the amount of funds necessary to provide

17 assistance under such program to women, infants, and

18 children, the agency, with the approval of the Secretary,

19 may permit low-income elderly persons (as defined by the

20 Secretary) to participate in and be served by such pro21 gram.

22 (f)(1) If it is necessary for the Secretary to pay a

23 significantly higher than expected price for one or more

24 types of commodities purchased under this section, the

25 Secretary shall promptly determine whether the price is
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•HR 1923 IH

1 likely to cause the number of persons that can be served

2 in the program in a fiscal year to decline.

3 (2) If the Secretary determines that such a decline

4 would occur, the Secretary shall promptly notify the State

5 agencies charged with operating the program of the de6 cline and shall ensure that a State agency notify all local

7 agencies operating the program in the State of the decline.

8 (g) Commodities distributed to States pursuant to

9 this section shall not be considered in determining the

10 commodity allocation to each State under section 14515

11 or priority of distribution under section 14516.

12 SEC. 14521. COMMODITIES NOT INCOME.

13 Notwithstanding any other provision of law, commod14 ities distributed under this chapter shall not be considered

15 income or resources for purposes of determining recipient

16 eligibility under any Federal, State, or local means-tested

17 program.

18 SEC. 14522. PROHIBITION AGAINST CERTAIN STATE

19 CHARGES.

20 Whenever a commodity is made available without

21 charge or credit under this chapter by the Secretary for

22 distribution within the States to eligible recipient agencies,

23 the State may not charge recipient agencies any amount

24 that is in excess of the State’s direct costs of storing, and

25 transporting to recipient agencies the commodities minus
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1 any amount the Secretary provides the State for the costs

2 of storing and transporting such commodities.

3 SEC. 14523. DEFINITIONS.

4 As used in this chapter:

5 (1) The term ‘‘average monthly number of un6 employed persons’’ means the average monthly num7 ber of unemployed persons within a State in the

8 most recent fiscal year for which such information is

9 available as determined by the Bureau of Labor Sta10 tistics of the Department of Labor.

11 (2) The term ‘‘elderly persons’’ means individ12 uals 60 years of age or older.

13 (3) The term ‘‘eligible recipient agency’’ means

14 a public or nonprofit organization that admin15 isters—

16 (A) an institution providing commodities to

17 supplemental feeding programs serving women,

18 infants, and children or serving elderly persons,

19 or serving both groups;

20 (B) an emergency feeding organization;

21 (C) a charitable institution (including a

22 hospital and a retirement home, but excluding

23 a penal institution) to the extent that such in24 stitution serves needy persons;
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1 (D) a summer camp for children, or a

2 child nutrition program providing food service;

3 (E) a nutrition project operating under the

4 Older Americans Act of 1965, including such

5 project that operates a congregate nutrition site

6 and a project that provides home-delivered

7 meals; or

8 (F) a disaster relief program; and that has

9 been designated by the appropriate State agen10 cy, or by the Secretary, and approved by the

11 Secretary for participation in the program es12 tablished under this chapter.

13 (4) The term ‘‘emergency feeding organization’’

14 means a public or nonprofit organization that ad15 ministers activities and projects (including the activi16 ties and projects of a charitable institution, a food

17 bank, a food pantry, a hunger relief center, a soup

18 kitchen, or a similar public or private nonprofit eligi19 ble recipient agency) providing nutrition assistance

20 to relieve situations of emergency and distress

21 through the provision of food to needy persons, in22 cluding low-income and unemployed persons.

23 (5) The term ‘‘food bank’’ means a public and

24 charitable institution that maintains an established

25 operation involving the provision of food or edible
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1 commodities, or the products thereof, to food pan2 tries, soup kitchens, hunger relief centers, or other

3 food or feeding centers that, as an integral part of

4 their normal activities, provide meals or food to feed

5 needy persons on a regular basis.

6 (6) The term ‘‘food pantry’’ means a public or

7 private nonprofit organization that distributes food

8 to low-income and unemployed households, including

9 food from sources other than the Department of Ag10 riculture, to relieve situations of emergency and dis11 tress.

12 (7) The term ‘‘needy persons’’ means—

13 (A) individuals who have low incomes or

14 who are unemployed, as determined by the

15 State (in no event shall the income of such indi16 vidual or household exceed 185 percent of the

17 poverty line);

18 (B) households certified as eligible to par19 ticipate in the food stamp program under the

20 Food Stamp Act of 1977 (7 U.S.C. 2011 et

21 seq.); or

22 (C) individuals or households participating

23 in any other Federal, or Federally assisted,

24 means-tested program.
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1 (8) The term ‘‘poverty line’’ has the same

2 meaning given such term in section 673(2) of the

3 Community Services Block Grant Act (42 U.S.C.

4 9902(2)).

5 (9) The term ‘‘soup kitchen’’ means a public

6 and charitable institution that, as integral part of its

7 normal activities, maintains an established feeding

8 operation to provide food to needy homeless persons

9 on a regular basis.

10 SEC. 14524. REGULATIONS.

11 (a) The Secretary shall issue regulations within 120

12 days to implement this chapter.

13 (b) In administering this chapter, the Secretary shall

14 minimize, to the maximum extent practicable, the regu15 latory, recordkeeping, and paperwork requirements im16 posed on eligible recipient agencies.

17 (c) The Secretary shall as early as feasible but not

18 later than the beginning of each fiscal year, publish in the

19 Federal Register a nonbinding estimate of the types and

20 quantities of commodities that the Secretary anticipates

21 are likely to be made available under the commodity dis22 tribution program under this chapter during the fiscal

23 year.

24 (d) The regulations issued by the Secretary under

25 this section shall include provisions that set standards
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1 with respect to liability for commodity losses for the com2 modities distributed under this chapter in situations in

3 which there is no evidence of negligence or fraud, and con4 ditions for payment to cover such losses. Such provisions

5 shall take into consideration the special needs and cir6 cumstances of eligible recipient agencies.

7 SEC. 14525. FINALITY OF DETERMINATIONS.

8 Determinations made by the Secretary under this

9 chapter and the facts constituting the basis for any dona10 tion of commodities under this chapter, or the amount

11 thereof, when officially determined in conformity with the

12 applicable regulations prescribed by the Secretary, shall

13 be final and conclusive and shall not be reviewable by any

14 other officer or agency of the Government.

15 SEC. 14526. SALE OF COMMODITIES PROHIBITED.

16 Except as otherwise provided in section 14517, none

17 of the commodities distributed under this chapter shall be

18 sold or otherwise disposed of in commercial channels in

19 any form.

20 SEC. 14527. SETTLEMENT AND ADJUSTMENT OF CLAIMS.

21 (a) The Secretary, or a designee of the Secretary,

22 shall have the authority to—

23 (1) determine the amount of, settle, and adjust

24 any claim arising under this chapter; and
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•HR 1923 IH

1 (2) waive such a claim if the Secretary deter2 mines that to do so will serve the purposes of this

3 chapter.

4 (b) Nothing contained in this section shall be con5 strued to diminish the authority of the Attorney General

6 of the United States under section 516 of title 28, United

7 States Code, to conduct litigation on behalf of the United

8 States.

9 SEC. 14528. REPEALERS; AMENDMENTS.

10 (a) The Emergency Food Assistance Act of 1983 (7

11 U.S.C. 612c note) is repealed.

12 (b) AMENDMENTS.—

13 (1) The Hunger Prevention Act of 1988 (7

14 U.S.C. 612c note) is amended—

15 (A) by striking section 110;

16 (B) by striking subtitle C of title II; and

17 (C) by striking section 502.

18 (2) The Commodity Distribution Reform Act

19 and WIC Amendments of 1987 (7 U.S.C. 612c note)

20 is amended by striking section 4.

21 (3) The Charitable Assistance and Food Bank

22 Act of 1987 (7 U.S.C. 612c note) is amended by

23 striking section 3.

24 (4) The Food Security Act of 1985 (7 U.S.C.

25 612c note) is amended—
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1 (A) by striking section 1571; and

2 (B) in section 1562(d), by striking ‘‘sec3 tion 4 of the Agricultural and Consumer Pro4 tection Act of 1973’’ and inserting ‘‘section 110

5 of the Commodity Distribution Act of 1995’’.

6 (5) The Agricultural and Consumer Protection

7 Act of 1973 (7 U.S.C. 612c note) is amended—

8 (A) in section 4(a), by striking ‘‘institu9 tions (including hospitals and facilities caring

10 for needy infants and children), supplemental

11 feeding programs serving women, infants and

12 children or elderly persons, or both, wherever

13 located, disaster areas, summer camps for chil14 dren’’ and inserting ‘‘disaster areas’’;

15 (B) in subsection 4(c), by striking ‘‘the

16 Emergency Food Assistance Act of 1983’’ and

17 inserting ‘‘the Commodity Distribution Act of

18 1995’’; and

19 (C) by striking section 5.

20 (6) The Food, Agriculture, Conservation, and

21 Trade Act of 1990 (7 U.S.C. 612c note) is amended

22 by striking section 1773(f).
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1 CHAPTER 2—CONSOLIDATING FOOD

2 ASSISTANCE PROGRAMS

3 SEC. 14541. FOOD STAMP BLOCK GRANT PROGRAM.

4 (a) AUTHORITY TO MAKE BLOCK GRANTS.—The

5 Secretary of Agriculture shall make grants in accordance

6 with this section to States to provide food assistance to

7 individuals who are economically disadvantaged and to in8 dividuals who are members of economically disadvantaged

9 families.

10 (b) DISTRIBUTION OF FUNDS.—The funds appro11 priated to carry out this section for any fiscal year shall

12 be allotted among the States as follows:

13 (1) Of the aggregate amount to be distributed

14 under this section, .21 percent shall be reserved for

15 grants to Guam, the Virgin Islands of the United

16 States, American Samoa, the Commonwealth of the

17 Northern Mariana Islands, the Republic of the Mar18 shall Islands, the Federated States of Micronesia,

19 and Palau.

20 (2) Of the aggregate amount to be distributed

21 under this section, .24 percent shall be reserved for

22 grants to tribal organizations that have govern23 mental jurisdiction over geographically defined areas

24 and shall be allocated equitably by the Secretary

25 among such organizations.
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•HR 1923 IH

1 (3) The remainder of such aggregate amount

2 shall be allocated among the remaining States. The

3 amount allocated to each of the remaining States

4 shall bear the same proportion to such remainder as

5 the number of resident individuals in such State who

6 are economically disadvantaged separately or as

7 members of economically disadvantaged families

8 bears to the aggregate number of resident individ9 uals in all such remaining States who are economi10 cally disadvantaged separately or as members of eco11 nomically disadvantaged families.

12 (c) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi13 ble to receive a grant in the amount allotted to a State

14 for a fiscal year, such State shall submit to the Secretary

15 an application in such form, and containing such informa16 tion and assurances, as the Secretary may require by rule,

17 including—

18 (1) an assurance that such grant will be ex19 pended by the State to provide food assistance to

20 resident individuals in such State who are economi21 cally disadvantaged separately or as members of eco22 nomically disadvantaged families,

23 (2) an assurance that not more than 5 percent

24 of such grant will be expended by the State for ad-
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1 ministrative costs incurred to provide assistance

2 under this section, and

3 (3) an assurance that an individual who has not

4 worked 32 hours in a calendar month shall be ineli5 gible to received food assistance under this chapter

6 during the succeeding month unless such individual

7 is—

8 (A) disabled,

9 (B) has attained 60 years of age, or

10 (C) residing with one or more of such indi11 vidual’s children who have not attained 18

12 years of age, but is not residing with any other

13 parent of any of such children, unless that

14 other parent is disabled.

15 (d) ANNUAL REPORT.—Each State that receives

16 funds appropriated to carry out this section for a fiscal

17 year shall submit the Secretary, not later than May 1 fol18 lowing such fiscal year, a report—

19 (1) specifying the number of families who re20 ceived food assistance under this section provided by

21 such State in such fiscal year;

22 (2) specifying the number of individuals who re23 ceived food assistance under this section provided by

24 such State in such fiscal year;
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1 (3) the amount of such funds expended in such

2 fiscal year by such State to provide food assistance;

3 and

4 (4) the administrative costs incurred in such

5 fiscal year by such State to provide food assistance.

6 (e) LIMITATION.—No State or political subdivision of

7 a State that receives funds provided under this subtitle

8 shall replace any employed worker with an individual who

9 is participating in a work program for the purpose of com10 plying with subsection (c)(3). Such an individual may be

11 placed in any position offered by the State or political sub12 division that—

13 (A) is a new position,

14 (B) is a position that became available in the

15 normal course of conducting the business of the

16 State or political subdivision,

17 (C) involves performing work that would other18 wise be performed on an overtime basis by a worker

19 who is not an individual participating in such pro20 gram, or

21 (D) that is a position which became available by

22 shifting a current employee to an alternate position.

23 (f) AUTHORIZATION OF APPROPRIATIONS.—(1)

24 There are authorized to be appropriated to carry out this
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1 section $26,245,000,000 for each of the fiscal years 1996,

2 1997, 1998, 1999, and 2000.

3 (2) For the purpose of affording adequate notice of

4 funding available under this section, an appropriation to

5 carry out this section is authorized to be included in an

6 appropriation Act for the fiscal year preceding the fiscal

7 year for which such appropriation is available for obliga8 tion.

9 SEC. 14542. AVAILABILITY OF FEDERAL COUPON SYSTEM

10 TO STATES.

11 (a) ISSUANCE, PURCHASE, AND USE OF COUPONS.—

12 The Secretary shall issue, and make available for purchase

13 by States, coupons for the retail purchase of food from

14 retail food stores that are approved in accordance with

15 subsection (b). Coupons issued, purchased, and used as

16 provided in this section shall be redeemable at face value

17 by the Secretary through the facilities of the Treasury of

18 the United States. The purchase price of each coupon is19 sued under this subsection shall be the face value of such

20 coupon.

21 (b) APPROVAL OF RETAIL FOOD STORES AND

22 WHOLESALE FOOD CONCERNS.—(1) Regulations issued

23 pursuant to this section shall provide for the submission

24 of applications for approval by retail food stores and

25 wholesale food concerns which desire to be authorized to
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1 accept and redeem coupons under this section. In deter2 mining the qualifications of applicants, there shall be con3 sidered among such other factors as may be appropriate,

4 the following:

5 (A) The nature and extent of the food business

6 conducted by the applicant.

7 (B) The volume of coupon business which may

8 reasonably be expected to be conducted by the appli9 cant food store or wholesale food concern.

10 (C) The business integrity and reputation of

11 the applicant.

12 Approval of an applicant shall be evidenced by the issu13 ance to such applicant of a nontransferable certificate of

14 approval. The Secretary is authorized to issue regulations

15 providing for a periodic reauthorization of retail food

16 stores and wholesale food concerns.

17 (2) A buyer or transferee (other than a bona fide

18 buyer or transferee) of a retail food store or wholesale food

19 concern that has been disqualified under subsection (d)

20 may not accept or redeem coupons until the Secretary re21 ceives full payment of any penalty imposed on such store

22 or concern.

23 (3) Regulations issued pursuant to this section shall

24 require an applicant retail food store or wholesale food

25 concern to submit information which will permit a deter-
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1 mination to be made as to whether such applicant quali2 fies, or continues to qualify, for approval under this sec3 tion or the regulations issued pursuant to this section.

4 Regulations issued pursuant to this section shall provide

5 for safeguards which limit the use or disclosure of infor6 mation obtained under the authority granted by this sub7 section to purposes directly connected with administration

8 and enforcement of this section or the regulations issued

9 pursuant to this section, except that such information may

10 be disclosed to and used by States that purchase such

11 coupons.

12 (4) Any retail food store or wholesale food concern

13 which has failed upon application to receive approval to

14 participate in the program under this sectionmay obtain

15 a hearing on such refusal as provided in subsection (f).

16 (c) REDEMPTION OF COUPONS.—Regulations issued

17 under this section shall provide for the redemption of cou18 pons accepted by retail food stores through approved

19 wholesale food concerns or through financial institutions

20 which are insured by the Federal Deposit Insurance Cor21 poration, or which are insured under the Federal Credit

22 Union Act (12 U.S.C. 1751 et seq.) and have retail food

23 stores or wholesale food concerns in their field of member24 ship, with the cooperation of the Treasury Department,

25 except that retail food stores defined in section
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1 14533(5)(D) shall be authorized to redeem their members’

2 food coupons prior to receipt by the members of the food

3 so purchased, and publicly operated community mental

4 health centers or private nonprofit organizations or insti5 tutions which serve meals to narcotics addicts or alcoholics

6 in drug addiction or alcoholic treatment and rehabilitation

7 programs, public and private nonprofit shelters that pre8 pare and serve meals for battered women and children,

9 public or private nonprofit group living arrangements that

10 serve meals to disabled or blind residents, and public or

11 private nonprofit establishments, or public or private non12 profit shelters that feed individuals who do not reside in

13 permanent dwellings and individuals who have no fixed

14 mailing addresses shall not be authorized to redeem cou15 pons through financial institutions which are insured by

16 the Federal Deposit Insurance Corporation or the Federal

17 Credit Union Act. No financial institution may impose on

18 or collect from a retail food store a fee or other charge

19 for the redemption of coupons that are submitted to the

20 financial institution in a manner consistent with the re21 quirements, other than any requirements relating to can22 cellation of coupons, for the presentation of coupons by

23 financial institutions to the Federal Reserve banks.

24 (d) CIVIL MONEY PENALTIES AND DISQUALIFICA25 TION OF RETAIL FOOD STORES AND WHOLESALE FOOD
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1 CONCERNS.—(1) Any approved retail food store or whole2 sale food concern may be disqualified for a specified period

3 of time from further participation in the coupon program

4 under this section, or subjected to a civil money penalty

5 of up to $10,000 for each violation if the Secretary deter6 mines that its disqualification would cause hardship to in7 dividuals who receive coupons, on a finding, made as speci8 fied in the regulations, that such store or concern has vio9 lated this section or the regulations issued pursuant to this

10 section.

11 (2) Disqualification under paragraph (1) shall be—

12 (A) for a reasonable period of time, of no less

13 than 6 months nor more than 5 years, upon the first

14 occasion of disqualification,

15 (B) for a reasonable period of time, of no less

16 than 12 months nor more than 10 years, upon the

17 second occasion of disqualification, and

18 (C) permanent upon—

19 (i) the third occasion of disqualification,

20 (ii) the first occasion or any subsequent oc21 casion of a disqualification based on the pur22 chase of coupons or trafficking in coupons by a

23 retail food store or wholesale food concern, ex24 cept that the Secretary shall have the discretion

25 to impose a civil money penalty of up to
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1 $20,000 for each violation (except that the

2 amount of civil money penalties imposed for

3 violations occurring during a single investiga4 tion may not exceed $40,000) in lieu of dis5 qualification under this subparagraph, for such

6 purchase of coupons or trafficking in coupons

7 that constitutes a violation of this section or the

8 regulations issued pursuant to this section, if

9 the Secretary determines that there is substan10 tial evidence (including evidence that neither

11 the ownership nor management of the store or

12 food concern was aware of, approved, benefited

13 from, or was involved in the conduct or ap14 proval of the violation) that such store or food

15 concern had an effective policy and program in

16 effect to prevent violations of this section and

17 such regulations, or

18 (iii) a finding of the sale of firearms, am19 munition, explosives, or controlled substance (as

20 defined in section 802 of title 21, United States

21 Code) for coupons, except that the Secretary

22 shall have the discretion to impose a civil money

23 penalty of up to $20,000 for each violation (ex24 cept that the amount of civil money penalties

25 imposed for violations occurring during a single
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1 investigation may not exceed $40,000) in lieu of

2 disqualification under this subparagraph if the

3 Secretary determines that there is substantial

4 evidence (including evidence that neither the

5 ownership nor management of the store or food

6 concern was aware of, approved, benefited from,

7 or was involved in the conduct or approval of

8 the violation) that the store or food concern had

9 an effective policy and program in effect to pre10 vent violations of this section.

11 (3) The action of disqualification or the imposition

12 of a civil money penalty shall be subject to review as pro13 vided in subsection (f).

14 (4) As a condition of authorization to accept and re15 deem coupons issued under subsection (a), the Secretary

16 may require a retail food store or wholesale food concern

17 which has been disqualified or subjected to a civil penalty

18 pursuant to paragraph (1) to furnish a bond to cover the

19 value of coupons which such store or concern may in the

20 future accept and redeem in violation of this section. The

21 Secretary shall, by regulation, prescribe the amount,

22 terms, and conditions of such bond. If the Secretary finds

23 that such store or concern has accepted and redeemed cou24 pons in violation of this section after furnishing such bond,

25 such store or concern shall forfeit to the Secretary an
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1 amount of such bond which is equal to the value of cou2 pons accepted and redeemed by such store or concern in

3 violation of this section. Such store or concern may obtain

4 a hearing on such forfeiture pursuant to subsection (f).

5 (5)(A) In the event any retail food store or wholesale

6 food concern that has been disqualified under paragraph

7 (1) is sold or the ownership thereof is otherwise trans8 ferred to a purchaser or transferee, the person or persons

9 who sell or otherwise transfer ownership of the retail food

10 store or wholesale food concern shall be subjected to a civil

11 money penalty in an amount established by the Secretary

12 through regulations to reflect that portion of the disquali13 fication period that has not yet expired. If the retail food

14 store or wholesale food concern has been disqualified per15 manently, the civil money penalty shall be double the pen16 alty for a 10-year disqualification period, as calculated

17 under regulations issued by the Secretary. The disquali18 fication period imposed under paragraph (2) shall con19 tinue in effect as to the person or persons who sell or oth20 erwise transfer ownership of the retail food store or whole21 sale food concern notwithstanding the imposition of a civil

22 money penalty under this paragraph.

23 (B) At any time after a civil money penalty imposed

24 under subparagraph (A) has become final under sub25 section (f)(1), the Secretary may request the Attorney
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1 General of the United States to institute a civil action

2 against the person or persons subject to the penalty in

3 a district court of the United States for any district in

4 which such person or persons are found, reside, or trans5 act business to collect the penalty and such court shall

6 have jurisdiction to hear and decide such action. In such

7 action, the validity and amount of such penalty shall not

8 be subject to review.

9 (C) The Secretary may impose a fine against any re10 tail food store or wholesale food concern that accepts cou11 pons that are not accompanied by the corresponding book

12 cover, other than the denomination of coupons used for

13 making change as specified in regulations issued under

14 this section. The amount of any such fine shall be estab15 lished by the Secretary and may be assessed and collected

16 separately in accordance with regulations issued under

17 this section or in combination with any fiscal claim estab18 lished by the Secretary. The Attorney General of the Unit19 ed States may institute judicial action in any court of com20 petent jurisdiction against the store or concern to collect

21 the fine.

22 (6) The Secretary may impose a fine against any per23 son not approved by the Secretary to accept and redeem

24 coupons who violates this section or a regulation issued

25 under this section, including violations concerning the ac-
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1 ceptance of coupons. The amount of any such fine shall

2 be established by the Secretary and may be assessed and

3 collected in accordance with regulations issued under this

4 section separately or in combination with any fiscal claim

5 established by the Secretary. The Attorney General of the

6 United States may institute judicial action in any court

7 of competent jurisdiction against the person to collect the

8 fine.

9 (e) COLLECTION AND DISPOSITION OF CLAIMS.—The

10 Secretary shall have the power to determine the amount

11 of and settle and adjust any claim and to compromise or

12 deny all or part of any such claim or claims arising under

13 this section or the regulations issued pursuant to this sec14 tion, including, but not limited to, claims arising from

15 fraudulent and nonfraudulent overissuances to recipients,

16 including the power to waive claims if the Secretary deter17 mines that to do so would serve the purposes of this sec18 tion. Such powers with respect to claims against recipients

19 may be delegated by the Secretary to State agencies.

20 (f) ADMINISTRATIVE AND JUDICIAL REVIEW.—(1)

21 Whenever—

22 (A) an application of a retail food store or

23 wholesale food concern for approval to accept and

24 redeem coupons issued under subsection (a) is de25 nied pursuant to this section,
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1 (B) a retail food store or wholesale food con2 cern is disqualified or subjected to a civil money

3 penalty under subsection (d),

4 (C) all or part of any claim of a retail food

5 store or wholesale food concern is denied under sub6 section (e), or

7 (D) a claim against a State is stated pursuant

8 to subsection (e),

9 notice of such administrative action shall be issued to the

10 retail food store, wholesale food concern, or State involved.

11 Such notice shall be delivered by certified mail or personal

12 service. If such store, concern, or State is aggrieved by

13 such action, it may, in accordance with regulations pro14 mulgated under this section, within 10 days of the date

15 of delivery of such notice, file a written request for an

16 opportunity to submit information in support of its posi17 tion to such person or persons as the regulations may des18 ignate. If such a request is not made or if such store, con19 cern, or State fails to submit information in support of

20 its position after filing a request, the administrative deter21 mination shall be final. If such request is made by such

22 store, concern, or State such information as may be sub23 mitted by such store, concern, or State as well as such

24 other information as may be available, shall be reviewed

25 by the person or persons designated by the Secretary, who
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1 shall, subject to the right of judicial review hereinafter

2 provided, make a determination which shall be final and

3 which shall take effect 30 days after the date of the deliv4 ery or service of such final notice of determination. If such

5 store, concern, or State feels aggrieved by such final deter6 mination, it may obtain judicial review thereof by filing

7 a complaint against the United States in the United

8 States court for the district in which it resides or is en9 gaged in business, or, in the case of a retail food store

10 or wholesale food concern, in any court of record of the

11 State having competent jurisdiction, within 30 days after

12 the date of delivery or service of the final notice of deter13 mination upon it, requesting the court to set aside such

14 determination. The copy of the summons and complaint

15 required to be delivered to the official or agency whose

16 order is being attacked shall be sent to the Secretary or

17 such person or persons as the Secretary may designate

18 to receive service of process. The suit in the United States

19 district court or State court shall be a trial de novo by

20 the court in which the court shall determine the validity

21 of the questioned administrative action in issue. If the

22 court determines that such administrative action is in23 valid, it shall enter such judgment or order as it deter24 mines is in accordance with the law and the evidence. Dur25 ing the pendency of such judicial review, or any appeal
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1 therefrom, the administrative action under review shall be

2 and remain in full force and effect, unless on application

3 to the court on not less than ten days’ notice, and after

4 hearing thereon and a consideration by the court of the

5 applicant’s likelihood of prevailing on the merits and of

6 irreparable injury, the court temporarily stays such ad7 ministrative action pending disposition of such trial or ap8 peal.

9 (g) VIOLATIONS AND ENFORCEMENT.—(1) Subject

10 to paragraph (2), whoever knowingly uses, transfers, ac11 quires, alters, or possesses coupons in any manner con12 trary to this section or the regulations issued pursuant

13 to this section shall, if such coupons are of a value of

14 $5,000 or more, be guilty of a felony and shall be fined

15 not more than $250,000 or imprisoned for not more than

16 20 years, or both, and shall, if such coupons are of a value

17 of $100 or more, but less than $5,000, be guilty of a fel18 ony and shall, upon the first conviction thereof, be fined

19 not more than $10,000 or imprisoned for not more than

20 5 years, or both, and, upon the second and any subsequent

21 conviction thereof, shall be imprisoned for not less than

22 6 months nor more than 5 years and may also be fined

23 not more than $10,000 or, if such coupons are of a value

24 of less than $100, shall be guilty of a misdemeanor, and,

25 upon the first conviction thereof, shall be fined not more
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1 than $1,000 or imprisoned for not more than one year,

2 or both, and upon the second and any subsequent convic3 tion thereof, shall be imprisoned for not more than one

4 year and may also be fined not more than $1,000.

5 (2) In the case of any individual convicted of an of6 fense under paragraph (1), the court may permit such in7 dividual to perform work approved by the court for the

8 purpose of providing restitution for losses incurred by the

9 United States and the State as a result of the offense for

10 which such individual was convicted. If the court permits

11 such individual to perform such work and such individual

12 agrees thereto, the court shall withhold the imposition of

13 the sentence on the condition that such individual perform

14 the assigned work. Upon the successful completion of the

15 assigned work the court may suspend such sentence.

16 (3) Whoever presents, or causes to be presented, cou17 pons for payment or redemption of the value of $100 or

18 more, knowing the same to have been received, trans19 ferred, or used in any manner in violation of this section

20 or the regulations issued under this section, shall be guilty

21 of a felony and, upon the first conviction thereof, shall

22 be fined not more than $20,000 or imprisoned for not

23 more than 5 years, or both, and, upon the second and any

24 subsequent conviction thereof, shall be imprisoned for not

25 less than one year nor more than 5 years and may also
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1 be fined not more than $20,000, or, if such coupons are

2 of a value of less than $100, shall be guilty of a mis3 demeanor and, upon the first conviction thereof, shall be

4 fined not more than $1,000 or imprisoned for not more

5 than one year, or both, and, upon the second and any sub6 sequent conviction thereof, shall be imprisoned for not

7 more than one year and may also be fined not more than

8 $1,000.

9 SEC. 14543. DEFINITIONS.

10 For purposes of this chapter—

11 (1) the term ‘‘coupon’’ means any coupon,

12 stamp, or type of certificate, but does not include

13 currency,

14 (2) the term ‘‘economically disadvantaged’’

15 means an individual or a family, as the case may be,

16 whose income does not exceed the most recent lower

17 living standard income level published by the De18 partment of Labor,

19 (3) the term ‘‘elderly or disabled individual’’

20 means an individual who—

21 (A) is 60 years of age or older,

22 (B)(i) receives supplemental security in23 come benefits under title XVI of the Social Se24 curity Act (42 U.S.C. 1381 et seq.), or Feder25 ally or State administered supplemental benefits
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1 of the type described in section 212(a) of Public

2 Law 93–66 (42 U.S.C. 1382 note), or

3 (ii) receives Federally or State adminis4 tered supplemental assistance of the type de5 scribed in section 1616(a) of the Social Security

6 Act (42 U.S.C. 1382e(a)), interim assistance

7 pending receipt of supplemental security in8 come, disability-related medical assistance

9 under title XIX of the Social Security Act (42

10 U.S.C. 1396 et seq.), or disability-based State

11 general assistance benefits, if the Secretary de12 termines that such benefits are conditioned on

13 meeting disability or blindness criteria at least

14 as stringent as those used under title XVI of

15 the Social Security Act,

16 (C) receives disability or blindness pay17 ments under title I, II, X, XIV, or XVI of the

18 Social Security Act (42 U.S.C. 301 et seq.) or

19 receives disability retirement benefits from a

20 governmental agency because of a disability

21 considered permanent under section 221(i) of

22 the Social Security Act (42 U.S.C. 421(i)),

23 (D) is a veteran who—

24 (i) has a service-connected or non25 service-connected disability which is rated
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1 as total under title 38, United States Code,

2 or

3 (ii) is considered in need of regular

4 aid and attendance or permanently house5 bound under such title,

6 (E) is a surviving spouse of a veteran

7 and—

8 (i) is considered in need of regular aid

9 and attendance or permanently house10 bound under title 38, United States Code,

11 or

12 (ii) is entitled to compensation for a

13 service-connected death or pension benefits

14 for a non-service-connected death under

15 title 38, United States Code, and has a

16 disability considered permanent under sec17 tion 221(i) of the Social Security Act (42

18 U.S.C. 421(i)),

19 (F) is a child of a veteran and—

20 (i) is considered permanently incapa21 ble of self-support under section 414 of

22 title 38, United States Code, or

23 (ii) is entitled to compensation for a

24 service-connected death or pension benefits

25 for a non-service-connected death under
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1 title 38, United States Code, and has a

2 disability considered permanent under sec3 tion 221(i) of the Social Security Act (42

4 U.S.C. 421(i)), or

5 (G) is an individual receiving an annuity

6 under section 2(a)(1)(iv) or 2(a)(1)(v) of the

7 Railroad Retirement Act of 1974 (45 U.S.C.

8 231a(a)(1)(iv) or 231a(a)(1)(v)), if the individ9 ual’s service as an employee under the Railroad

10 Retirement Act of 1974, after December 31,

11 1936, had been included in the term ‘‘employ12 ment’’ as defined in the Social Security Act (42

13 U.S.C. 301 et seq.), and if an application for

14 disability benefits had been filed,

15 (4) the term ‘‘food’’ means, for purposes of sec16 tion 14542(a) only—

17 (A) any food or food product for home con18 sumption except alcoholic beverages, tobacco,

19 and hot foods or hot food products ready for

20 immediate consumption other than those au21 thorized pursuant to subparagraphs (C), (D),

22 (E), (G), (H), and (I),

23 (B) seeds and plants for use in gardens to

24 produce food for the personal consumption of

25 the eligible individuals,
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1 (C) in the case of those persons who are

2 60 years of age or over or who receive supple3 mental security income benefits or disability or

4 blindness payments under title I, II, X, XIV, or

5 XVI of the Social Security Act (42 U.S.C. 301

6 et seq.), and their spouses, meals prepared by

7 and served in senior citizens’ centers, apart8 ment buildings occupied primarily by such per9 sons, public or private nonprofit establishments

10 (eating or otherwise) that feed such persons,

11 private establishments that contract with the

12 appropriate agency of the State to offer meals

13 for such persons at concessional prices, and

14 meals prepared for and served to residents of

15 federally subsidized housing for the elderly,

16 (D) in the case of persons 60 years of age

17 or over and persons who are physically or men18 tally handicapped or otherwise so disabled that

19 they are unable adequately to prepare all of

20 their meals, meals prepared for and delivered to

21 them (and their spouses) at their home by a

22 public or private nonprofit organization or by a

23 private establishment that contracts with the

24 appropriate State agency to perform such serv25 ices at concessional prices,
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1 (E) in the case of narcotics addicts or alco2 holics, and their children, served by drug addic3 tion or alcoholic treatment and rehabilitation

4 programs, meals prepared and served under

5 such programs,

6 (F) in the case of eligible individuals living

7 in Alaska, equipment for procuring food by

8 hunting and fishing, such as nets, hooks, rods,

9 harpoons, and knives (but not equipment for

10 purposes of transportation, clothing, or shelter,

11 and not firearms, ammunition, and explosives)

12 if the Secretary determines that such individ13 uals are located in an area of the State where

14 it is extremely difficult to reach stores selling

15 food and that such individuals depend to a sub16 stantial extent upon hunting and fishing for

17 subsistence,

18 (G) in the case of disabled or blind recipi19 ents of benefits under title I, II, X, XIV, or

20 XVI of the Social Security Act (42 U.S.C. 301

21 et seq.), or are individuals described in subpara22 graphs (B) through (G) of paragraph (4), who

23 are residents in a public or private nonprofit

24 group living arrangement that serves no more

25 than 16 residents and is certified by the appro-
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1 priate State agency or agencies under regula2 tions issued under section 1616(e) of the Social

3 Security Act (42 U.S.C. 1382e(e)) or under

4 standards determined by the Secretary to be

5 comparable to standards implemented by appro6 priate State agencies under such section, meals

7 prepared and served under such arrangement,

8 (H) in the case of women and children

9 temporarily residing in public or private non10 profit shelters for battered women and children,

11 meals prepared and served, by such shelters,

12 and

13 (I) in the case of individuals that do not

14 reside in permanent dwellings and individuals

15 that have no fixed mailing addresses, meals pre16 pared for and served by a public or private non17 profit establishment (approved by an appro18 priate State or local agency) that feeds such in19 dividuals and by private establishments that

20 contract with the appropriate agency of the

21 State to offer meals for such individuals at

22 concessional prices,

23 (5) the term ‘‘retail food store’’ means—

24 (A) an establishment or recognized depart25 ment thereof or house-to-house trade route,
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1 over 50 percent of whose food sales volume, as

2 determined by visual inspection, sales records,

3 purchase records, or other inventory or account4 ing recordkeeping methods that are customary

5 or reasonable in the retail food industry, con6 sists of staple food items for home preparation

7 and consumption, such as meat, poultry, fish,

8 bread, cereals, vegetables, fruits, dairy prod9 ucts, and the like, but not including accessory

10 food items, such as coffee, tea, cocoa, carbon11 ated and uncarbonated drinks, candy, con12 diments, and spices,

13 (B) an establishment, organization, pro14 gram, or group living arrangement referred to

15 in subparagraph (C), (D), (E), (G), (H), or (I)

16 of paragraph (5),

17 (C) a store purveying the hunting and fish18 ing equipment described in paragraph (5)(F),

19 or

20 (D) any private nonprofit cooperative food

21 purchasing venture, including those in which

22 the members pay for food purchased prior to

23 the receipt of such food,

24 (6) the term ‘‘school’’ means an elementary, in25 termediate, or secondary school,
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1 (7) the term ‘‘Secretary’’ means the Secretary

2 of Agriculture,

3 (8) the term ‘‘State’’ means any of the several

4 States, the District of Columbia, the Commonwealth

5 of Puerto Rico, Guam, the Virgin Islands of the

6 United States, American Samoa, the Commonwealth

7 of the Northern Mariana Islands, the Republic of

8 the Marshall Islands, the Federated States of Micro9 nesia, Palau, or a tribal organization that exercises

10 governmental jurisdiction over a geographically de11 fined area, and

12 (9) the term ‘‘tribal organization’’ has the

13 meaning given it in section 4(l) of the Indian Self14 Determination and Education Assistance Act (25

15 U.S.C. 450b(l)).

16 SEC. 14544. REPEALER.

17 The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.)

18 is repealed.

19 CHAPTER 3—EFFECTIVE DATES AND

20 MISCELLANEOUS PROVISIONS

21 SEC. 14591. EFFECTIVE DATE; APPLICATION OF REPEALER.

22 (a) EFFECTIVE DATES.—

23 (1) GENERAL EFFECTIVE DATE OF SUBTITLE

24 A.—Subtitle A shall take effect on October 1, 1995.
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•HR 1923 IH

1 (2) GENERAL EFFECTIVE DATE OF SUBTITLE

2 A/B.—Except as provided in subsection (b), subtitle

3 B and the repeal made by section 14544 shall take

4 effect on the date of the enactment of this title.

5 (3) SPECIAL EFFECTIVE DATE.—The repeal

6 made by section 14544 shall not take effect until the

7 first day of the first fiscal year for which funds are

8 appropriated more than 180 days in advance of such

9 fiscal year to carry out section 14541.

10 (b) APPLICATION OF REPEALER.—The repeal made

11 by section 14544 shall not apply with respect to—

12 (1) powers, duties, functions, rights, claims,

13 penalties, or obligations applicable to financial as14 sistance provided under the Food Stamp Act of

15 1977 before the effective date of such repeal, and

16 (2) administrative actions and proceedings com17 menced before such date, or authorized before such

18 date to be commenced, under such Act.

19 SEC. 14592. SENSE OF THE CONGRESS.

20 It is the sense of the Congress that States that oper21 ate electronic benefit systems to transfer benefits provided

22 under the Food Stamp Act of 1977 should operate elec23 tronic benefit systems that are compatible with each other.
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1 SEC. 14593. DEFICIT REDUCTION.

2 It is the sense of the Committee on Agriculture of

3 the House of Representatives that reductions in outlays

4 resulting from subtitle B shall not be taken into account

5 for purposes of section 252 of the Balanced Budget and

6 Emergency Deficit Control Act of 1985.

7 Subtitle F—Supplemental Security

8 Income

9 SEC. 14601. DENIAL OF SUPPLEMENTAL SECURITY INCOME

10 BENEFITS BY REASON OF DISABILITY TO

11 DRUG ADDICTS AND ALCOHOLICS.

12 (a) IN GENERAL.—Section 1614(a)(3) of the Social

13 Security Act (42 U.S.C. 1382c(a)(3)) is amended by add14 ing at the end the following:

15 ‘‘(I) Notwithstanding subparagraph (A), an individ16 ual shall not be considered to be disabled for purposes of

17 this title if alcoholism or drug addiction would (but for

18 this subparagraph) be a contributing factor material to

19 the Commissioner’s determination that the individual is

20 disabled.’’.

21 (b) CONFORMING AMENDMENTS.—

22 (1) Section 1611(e) of such Act (42 U.S.C.

23 1382(e)) is amended by striking paragraph (3).

24 (2) Section 1631(a)(2)(A)(ii) of such Act (42

25 U.S.C. 1383(a)(2)(A)(ii)) is amended—

26 (A) by striking ‘‘(I)’’; and
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1 (B) by striking subclause (II).

2 (3) Section 1631(a)(2)(B) of such Act (42

3 U.S.C. 1383(a)(2)(B)) is amended—

4 (A) by striking clause (vii);

5 (B) in clause (viii), by striking ‘‘(ix)’’ and

6 inserting ‘‘(viii)’’;

7 (C) in clause (ix)—

8 (i) by striking ‘‘(viii)’’ and inserting

9 ‘‘(vii)’’; and

10 (ii) in subclause (II), by striking all

11 that follows ‘‘15 years’’ and inserting a pe12 riod;

13 (D) in clause (xiii)—

14 (i) by striking ‘‘(xii)’’ and inserting

15 ‘‘(xi)’’; and

16 (ii) by striking ‘‘(xi)’’ and inserting

17 ‘‘(x)’’; and

18 (E) by redesignating clauses (viii) through

19 (xiii) as clauses (vii) through (xii), respectively.

20 (4) Section 1631(a)(2)(D)(i)(II) of such Act

21 (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amended by

22 striking all that follows ‘‘$25.00 per month’’ and in23 serting a period.

24 (5) Section 1634 of such Act (42 U.S.C. 1383c)

25 is amended by striking subsection (e).
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1 (6) Section 201(c)(1) of the Social Security

2 Independence and Program Improvements Act of

3 1994 (42 U.S.C. 425 note) is amended—

4 (A) by striking ‘‘—’’ and all that follows

5 through ‘‘(A)’’ the 1st place such term appears;

6 (B) by striking ‘‘and’’ the 3rd place such

7 term appears;

8 (C) by striking subparagraph (B);

9 (D) by striking ‘‘either subparagraph (A)

10 or subparagraph (B)’’ and inserting ‘‘the pre11 ceding sentence’’; and

12 (E) by striking ‘‘subparagraph (A) or (B)’’

13 and inserting ‘‘the preceding sentence’’.

14 (c) EFFECTIVE DATE.—The amendments made by

15 this section shall take effect on October 1, 1995, and shall

16 apply with respect to months beginning on or after such

17 date.

18 (d) FUNDING OF CERTAIN PROGRAMS FOR DRUG

19 ADDICTS AND ALCOHOLICS.—

20 (1) IN GENERAL.—Out of any money in the

21 Treasury not otherwise appropriated, there are here22 by appropriated—

23 (A) for carrying out section 1971 of the

24 Public Health Service Act (as amended by

25 paragraph (2) of this subsection), $95,000,000
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1 for each of the fiscal years 1997 through 2000;

2 and

3 (B) for carrying out the medication devel4 opment project to improve drug abuse and drug

5 treatment research (administered through the

6 National Institute on Drug Abuse), $5,000,000

7 for each of the fiscal years 1997 through 2000.

8 (2) CAPACITY EXPANSION PROGRAM REGARD9 ING DRUG ABUSE TREATMENT.—Section 1971 of the

10 Public Health Service Act (42 U.S.C. 300y) is

11 amended—

12 (A) in subsection (a)(1), by adding at the

13 end the following sentence: ‘‘This paragraph is

14 subject to subsection (j).’’;

15 (B) by redesignating subsection (j) as sub16 section (k);

17 (C) in subsection (j) (as so redesignated),

18 by inserting before the period the following:

19 ‘‘and for each of the fiscal years 1995 through

20 2000’’; and

21 (D) by inserting after subsection (i) the

22 following subsection:

23 ‘‘(j) FORMULA GRANTS FOR CERTAIN FISCAL

24 YEARS.—
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1 ‘‘(1) IN GENERAL.—For each of the fiscal years

2 1997 through 2000, the Director shall, for the pur3 pose described in subsection (a)(1), make a grant to

4 each State that submits to the Director an applica5 tion in accordance with paragraph (2). Such a grant

6 for a State shall consist of the allotment determined

7 for the State under paragraph (3). For each of the

8 fiscal years 1997 through 2000, grants under this

9 paragraph shall be the exclusive grants under this

10 section.

11 ‘‘(2) REQUIREMENTS.—The Director may make

12 a grant under paragraph (1) only if, by the date

13 specified by the Director, the State submits to the

14 Director an application for the grant that is in such

15 form, is made in such manner, and contain such

16 agreements, assurances, and information as the Di17 rector determines to be necessary to carry out this

18 subsection, and if the application contains an agree19 ment by the State in accordance with the following:

20 ‘‘(A) The State will expend the grant in

21 accordance with the priority described in sub22 section (b)(1).

23 ‘‘(B) The State will comply with the condi24 tions described in each of subsections (c), (d),

25 (g), and (h).
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1 ‘‘(3) ALLOTMENT.—

2 ‘‘(A) For purposes of paragraph (1), the

3 allotment under this paragraph for a State for

4 a fiscal year shall, except as provided in sub5 paragraph (B), be the product of—

6 ‘‘(i) the amount appropriated in sec7 tion 14601(d)(1)(A) of the Personal Re8 sponsibility Act of 1995 for the fiscal year,

9 together with any additional amounts ap10 propriated to carry out this section for the

11 fiscal year; and

12 ‘‘(ii) the percentage determined for

13 the State under the formula established in

14 section 1933(a).

15 ‘‘(B) Subsections (b) through (d) of section

16 1933 apply to an allotment under subparagraph

17 (A) to the same extent and in the same manner

18 as such subsections apply to an allotment under

19 subsection (a) of section 1933.’’.

20 SEC. 14602. SUPPLEMENTAL SECURITY INCOME BENEFITS

21 FOR DISABLED CHILDREN.

22 (a) RESTRICTIONS ON ELIGIBILITY FOR CASH BENE23 FITS.—
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1 (1) IN GENERAL.—Section 1614(a)(3)(A) of the

2 Social Security Act (42 U.S.C. 1382c(a)(3)(A)) is

3 amended—

4 (A) by inserting ‘‘(i)’’ after ‘‘(3)(A)’’;

5 (B) by inserting ‘‘who has attained 18

6 years of age’’ before ‘‘shall be considered’’;

7 (C) by striking ‘‘he’’ and inserting ‘‘the in8 dividual’’;

9 (D) by striking ‘‘(or, in the case of an indi10 vidual under the age of 18, if he suffers from

11 any medically determinable physical or mental

12 impairment impairment of comparable sever13 ity)’’; and

14 (E) by adding after and below the end the

15 following:

16 ‘‘(ii) An individual who has not attained 18 years of

17 age shall be considered to be disabled for purposes of this

18 title for a month if the individual—

19 ‘‘(I) meets all non-disability-related require20 ments for eligibility for cash benefits under this title;

21 ‘‘(II) has any medically determinable physical

22 or mental impairment (or combination of impair23 ments) that meets the requirements, applicable to

24 individuals who have not attained 18 years of age,

25 of the Listings of Impairments set forth in appendix
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1 1 of subpart P of part 404 of title 20, Code of Fed2 eral Regulations (revised as of April 1, 1994), or

3 that is equivalent in severity to such an impairment

4 (or such a combination of impairments); and

5 ‘‘(III)(aa) for the month preceding the first

6 month for which this clause takes effect, was eligible

7 for cash benefits under this title by reason of disabil8 ity; or

9 ‘‘(bb) as a result of the impairment (or com10 bination of impairments) involved—

11 ‘‘(1) is in a hospital, skilled nursing facil12 ity, nursing facility, residential treatment facil13 ity, intermediate care facility for the mentally

14 retarded, or other medical institution; or

15 ‘‘(2) would be required to be placed in

16 such an institution if the individual were not re17 ceiving personal assistance necessitated by the

18 impairment (or impairments).

19 ‘‘(iii) As used in clause (ii)(III)(bb)(2), the term ‘per20 sonal assistance’ includes at least hands-on or stand-by

21 assistance, supervision, or cueing, with activities of daily

22 living and the administration of medical treatment (where

23 applicable). For purposes of the preceding sentence, the

24 term ‘acitivities of daily living’ means eating, toileting,

25 dressing, bathing, and transferring.’’.
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1 (2) NOTICE.—Within 1 month after the date of

2 the enactment of this Act, the Commissioner of So3 cial Security shall notify each individual whose eligi4 bility for cash supplemental security income benefits

5 under title XVI of the Social Security Act will termi6 nate by reason of the amendments made by para7 graph (1) of such termination.

8 (3) ANNUAL REPORTS ON LISTINGS OF IMPAIR9 MENTS.—The Commissioner of Social Security shall

10 annually submit to the Congress a report on the

11 Listings of Impairments set forth in appendix 1 of

12 subpart P of part 404 of title 20, Code of Federal

13 Regulations (revised as of April 1, 1994), that are

14 applicable to individuals who have not attained 18

15 years of age, and recommend any necessary revisions

16 to the listings.

17 (b) ESTABLISHMENT OF PROGRAM OF BLOCK

18 GRANTS REGARDING CHILDREN WITH DISABILITIES.—

19 (1) IN GENERAL.—Title XVI of the Social Se20 curity Act (42 U.S.C. 1381 et seq.) is amended by

21 adding at the end the following:
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1 ‘‘PART C—BLOCK GRANTS TO STATES FOR

2 CHILDREN WITH DISABILITIES

3 ‘‘SEC. 1641. ENTITLEMENT TO GRANTS.

4 ‘‘Each State that meets the requirements of section

5 1642 for fiscal year 1997 or any subsequent fiscal year

6 shall be entitled to receive from the Commissioner for the

7 fiscal year a grant in an amount equal to the allotment

8 (as defined in section 1646(1)) of the State for the fiscal

9 year.

10 ‘‘SEC. 1642. REQUIREMENTS.

11 ‘‘(a) IN GENERAL.—A State meets the requirements

12 of this section for a grant under section 1641 for a fiscal

13 year if by the date specified by the Commissioner, the

14 State submits to the Commissioner an application for the

15 grant that is in such form, is made in such manner, and

16 contain such agreements, assurances, and information as

17 the Commissioner determines to be necessary to carry out

18 this part, and if the application contains an agreement by

19 the State in accordance with the following:

20 ‘‘(1) The grant will not be expended for any

21 purpose other than providing authorized services (as

22 defined in section 1646(2)) to qualifying children (as

23 defined in section 1646(3)).

24 ‘‘(2)(A) In providing authorized services, the

25 State will make every reasonable effort to obtain

26 payment for the services from other Federal or State
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1 programs that provide payment for such services

2 and from private entities that are legally liable to

3 make the payments pursuant to insurance policies,

4 prepaid plans, or other arrangements.

5 ‘‘(B) The State will expend the grant only to

6 the extent that payments from the programs and en7 tities described in subparagraph (A) are not avail8 able for authorized services provided by the State.

9 ‘‘(3) The State will comply with the condition

10 described in subsection (b).

11 ‘‘(4) The State will comply with the condition

12 described in subsection (c).

13 ‘‘(b) MAINTENANCE OF EFFORT.—

14 ‘‘(1) IN GENERAL.—The condition referred to

15 in subsection (a)(3) for a State for a fiscal year is

16 that, with respect to the purposes described in para17 graph (2), the State will maintain expenditures of

18 non-Federal amounts for such purposes at a level

19 that is not less than the following, as applicable:

20 ‘‘(A) For the first fiscal year for which the

21 State receives a grant under section 1641, an

22 amount equal to the difference between—

23 ‘‘(i) the average level of such expendi24 tures maintained by the State for the 2-

25 year period preceding October 1, 1995 (ex-
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1 cept that, if such first fiscal year is other

2 than fiscal year 1997, the amount of such

3 average level shall be increased to the ex4 tent necessary to offset the effect of infla5 tion occurring after October 1, 1995); and

6 ‘‘(ii) the aggregate of non-Federal ex7 penditures made by the State for such 2-

8 year period pursuant to section 1618 (as

9 such section was in effect for such period).

10 ‘‘(B) For each subsequent fiscal year, the

11 amount applicable under subparagraph (A) in12 creased to the extent necessary to offset the ef13 fect of inflation occurring after the beginning of

14 the fiscal year to which such subparagraph ap15 plies.

16 ‘‘(2) RELEVANT PURPOSES.—The purposes de17 scribed in this paragraph are any purposes designed

18 to meet (or assist in meeting) the unique needs of

19 qualifying children that arise from physical and

20 mental impairments, including such purposes that

21 are authorized to be carried out under title XIX.

22 ‘‘(3) RULE OF CONSTRUCTION.—With respect

23 to compliance with the agreement made by a State

24 pursuant to paragraph (1), the State has discretion

25 to select, from among the purposes described in
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1 paragraph (2), the purposes for which the State ex2 pends the non-Federal amounts reserved by the

3 State for such compliance.

4 ‘‘(4) USE OF CONSUMER PRICE INDEX.—Deter5 minations under paragraph (1) of the extent of in6 flation shall be made through use of the consumer

7 price index for all urban consumers, U.S. city aver8 age, published by the Bureau of Labor Statistics.

9 ‘‘(c) ASSESSMENT OF NEED FOR SERVICES.—The

10 condition referred to in subsection (a)(4) for a State for

11 a fiscal year is that each qualifying child will be permitted

12 to apply for authorized services, and will be provided with

13 an opportunity to have an assessment conducted to deter14 mine the need of such child for authorized services.

15 ‘‘SEC. 1643. AUTHORITY OF STATE.

16 ‘‘The following decisions are in the discretion of a

17 State with respect to compliance with an agreement made

18 by the State under section 1642(a)(1):

19 ‘‘(1) Decisions regarding which of the author20 ized services are provided.

21 ‘‘(2) Decisions regarding who among qualifying

22 children in the State receives the services.

23 ‘‘(3) Decisions regarding the number of services

24 provided for the qualifying child involved and the

25 duration of the services.
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1 ‘‘SEC. 1644. AUTHORIZED SERVICES.

2 ‘‘(a) AUTHORITY OF COMMISSIONER.—The Commis3 sioner, subject to subsection (b), shall issue regulations

4 designating the purposes for which grants under section

5 1641 are authorized to be expended by the States.

6 ‘‘(b) REQUIREMENTS REGARDING SERVICES.—The

7 Commissioner shall ensure that the purposes authorized

8 under subsection (a)—

9 ‘‘(1) are designed to meet (or assist in meeting)

10 the unique needs of qualifying children that arise

11 from physical and mental impairments;

12 ‘‘(2) include medical and nonmedical services;

13 and

14 ‘‘(3) do not include the provision of cash bene15 fits.

16 ‘‘SEC. 1645. GENERAL PROVISIONS.

17 ‘‘(a) ISSUANCE OF REGULATIONS.—Regulations

18 under this part shall be issued in accordance with proce19 dures established for the issuance of substantive rules

20 under section 553 of title 5, United States Code. Pay21 ments under grants under section 1641 for fiscal year

22 1997 shall begin not later than January 1, 1997, without

23 regard to whether final rules under this part have been

24 issued and without regard to whether such rules have

25 taken effect.

26 ‘‘(b) PROVISIONS REGARDING OTHER PROGRAMS.—
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1 ‘‘(1) INAPPLICABILITY OF VALUE OF SERV2 ICES.—The value of authorized services provided

3 under this part shall not be taken into account in

4 determining eligibility for, or the amount of, benefits

5 or services under any Federal or federally-assisted

6 program.

7 ‘‘(2) MEDICAID PROGRAM.—For purposes of

8 title XIX, each qualifying child shall be considered

9 to be a recipient of supplemental security income

10 benefits under this title (without regard to whether

11 the child has received authorized services under this

12 part and without regard to whether the State in13 volved is receiving a grant under section 1641). The

14 preceding sentence applies on and after the date of

15 the enactment of this part.

16 ‘‘(c) USE BY STATES OF EXISTING DELIVERY SYS17 TEMS.—With respect to the systems utilized by the States

18 to deliver services to individuals with disabilities (including

19 systems utilized before the date of the enactment of the

20 Personal Responsibility Act of 1995), it is the sense of

21 the Congress that the States should utilize such systems

22 in providing authorized services under this part.

23 ‘‘(d) REQUIRED PARTICIPATION OF STATES.—Sub24 paragraphs (C)(i) and (E)(i)(I) of section 205(c)(2) shall

25 not apply to a State that does not participate in the pro-
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1 gram established in this part for fiscal year 1997 or any

2 succeeding fiscal year.

3 ‘‘SEC. 1646. DEFINITIONS.

4 ‘‘As used in this part:

5 ‘‘(1) ALLOTMENT.—The term ‘allotment’

6 means, with respect to a State and a fiscal year, the

7 product of—

8 ‘‘(A) an amount equal to the difference be9 tween—

10 ‘‘(i) the number of qualifying children

11 in the State (as determined for the most

12 recent 12-month period for which data are

13 available to the Commissioner); and

14 ‘‘(ii) the number of qualifying children

15 in the State receiving cash benefits under

16 this title by reason of disability (as so de17 termined); and

18 ‘‘(B) an amount equal to 75 percent of the

19 mean average of the respective annual totals of

20 cash benefits paid under this title to each quali21 fying child described in subparagraph (A)(ii)

22 (as so determined).

23 ‘‘(2) AUTHORIZED SERVICE.—The term ‘au24 thorized service’ means each purpose authorized by

25 the Commissioner under section 1644(a).
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1 ‘‘(3) QUALIFYING CHILD.—

2 ‘‘(A) IN GENERAL.—The term ‘qualifying

3 child’ means an individual who—

4 ‘‘(i) has not attained 18 years of age;

5 and

6 ‘‘(ii)(I) is eligible for cash benefits

7 under this title by reason of disability; or

8 ‘‘(II) meets the conditions described

9 in subclauses (I) and (II) of section

10 1614(a)(3)(A)(ii), but (by reason of

11 subclause (III) of such section) is not eligi12 ble for such cash benefits.

13 ‘‘(B) RESPONSIBILITIES OF COMMIS14 SIONER.—The Commissioner shall provide for

15 determinations of whether individuals meet the

16 criteria established in subparagraph (A) for sta17 tus as qualifying children. Such determinations

18 shall be made in accordance with the provisions

19 otherwise applicable under this title with re20 spect to such criteria.’’.

21 (2) RULE REGARDING CERTAIN MILITARY PAR22 ENTS; CASH BENEFITS FOR QUALIFYING CHIL23 DREN.—Section 1614(a)(1)(B)(ii) of the Social Se24 curity Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amend25 ed by striking ‘‘United States, and who, for the
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1 month’’ and all that follows and inserting the follow2 ing: ‘‘United States, and—

3 ‘‘(I) who, for the month before the parent re4 ported for such assignment, received a cash benefit

5 under this title by reason of blindness, or

6 ‘‘(II) for whom, for such month, a determina7 tion was in effect that the child is a qualifying child

8 under section 1646(3).’’.

9 (c) PROVISIONS RELATING TO SSI CASH BENEFITS

10 AND SSI SERVICE BENEFITS.—

11 (1) CONTINUING DISABILITY REVIEWS FOR

12 CERTAIN CHILDREN.—Section 1614(a)(3)(G) of such

13 Act (42 U.S.C. 1382c(a)(3)(G)) is amended—

14 (A) by inserting ‘‘(i)’’ after ‘‘(G)’’; and

15 (B) by adding at the end the following:

16 ‘‘(ii)(I) Not less frequently than once every 3 years,

17 the Commissioner shall redetermine the eligibility for cash

18 benefits under this title and for services under part C—

19 ‘‘(aa) of each individual who has not attained

20 18 years of age and is eligible for such cash benefits

21 by reason of disability; and

22 ‘‘(bb) of each qualifying child (as defined in sec23 tion 1646(3)).
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1 ‘‘(II) Subclause (I) shall not apply to an individual

2 if the individual has an impairment (or combination of im3 pairments) which is (or are) not expected to improve.’’.

4 (2) DISABILITY REVIEW REQUIRED FOR LOW

5 BIRTH WEIGHT BABIES WHO HAVE RECEIVED SSI

6 BENEFITS FOR 12 MONTHS.—Section 1614(a)(3)(G)

7 of such Act (42 U.S.C. 1382c(a)(3)(G)), as amended

8 by paragraph (1) of this subsection, is amended by

9 adding at the end the following:

10 ‘‘(iii)(I) The Commissioner shall redetermine the eli11 gibility for—

12 ‘‘(aa) cash benefits under this title by reason of

13 disability of an individual whose low birth weight is

14 a contributing factor material to the Commissioner’s

15 determination that the individual is disabled; and

16 ‘‘(bb) services under part C of an individual

17 who is eligible for such services by reason of low

18 birth weight.

19 ‘‘(II) The redetermination required by subclause (I)

20 shall be conducted once the individual has received such

21 benefits for 12 months.

22 ‘‘(III) A redetermination under subclause (I) of this

23 clause shall be considered a substitute for a review re24 quired under any other provision of this subparagraph.’’.
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1 (3) APPLICABILITY OF MEDICAID RULES RE2 GARDING COUNTING OF CERTAIN ASSETS AND

3 TRUSTS OF CHILDREN.—Section 1613(c) of the So4 cial Security Act (42 U.S.C. 1382b(c)) is amended

5 to read as follows:

6 ‘‘TREATMENT OF CERTAIN ASSETS AND TRUSTS IN

7 ELIGIBILITY DETERMINATIONS FOR CHILDREN

8 ‘‘(c) Subsections (c) and (d) of section 1917 shall

9 apply to determinations of eligibility for benefits under

10 this title in the case of an individual who has not attained

11 18 years of age in the same manner as such subsections

12 apply to determinations of eligibility for medical assistance

13 under a State plan under title XIX, except that—

14 ‘‘(1) the amount described in section

15 1917(c)(1)(E)(i)(II) shall be the amount of cash

16 benefits payable under this title to an eligible indi17 vidual who does not have an eligible spouse and who

18 has no income or resources;

19 ‘‘(2) the look-back date specified in section

20 1917(c)(1)(B) shall be the date that is 36 months

21 before the date the individual has applied for bene22 fits under this title; and

23 ‘‘(3) any assets in a trust over which the indi24 vidual has control shall be considered assets of the

25 individual.’’.

26 (d) CONFORMING AMENDMENTS.—
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1 (1) Subsections (b)(1), (b)(2), (c)(3), (c)(5),

2 and (e)(1)(B) of section 1611 of the Social Security

3 Act (42 U.S.C. 1382 (b)(1), (b)(2), (c)(3), (c)(5),

4 and (e)(1)(B)) are each amended by inserting

5 ‘‘cash’’ before ‘‘benefit under this title’’.

6 (2) Section 1611(c)(1) of such Act (42 U.S.C.

7 1382(c)(1)) is amended—

8 (A) by striking ‘‘a benefit’’ and inserting

9 ‘‘benefits’’;

10 (B) by striking ‘‘such benefit’’ and insert11 ing ‘‘the cash benefit under this title’’; and

12 (C) by striking ‘‘and the amount of such

13 benefits’’ and inserting ‘‘benefits under this

14 title and the amount of any cash benefit under

15 this title’’.

16 (3) Section 1611(c)(2) of such Act (42 U.S.C.

17 1382(c)(2)) is amended—

18 (A) by striking ‘‘such benefit’’ and insert19 ing ‘‘the cash benefit’’;

20 (B) by inserting ‘‘cash’’ before ‘‘benefits’’

21 each place such term appears; and

22 (C) in subpargraph (B), by inserting

23 ‘‘cash’’ before ‘‘benefit’’.
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1 (4) Section 1611(c)(3) of such Act (42 U.S.C.

2 1382(c)(3)) is amended by inserting ‘‘cash’’ before

3 ‘‘benefits under this title’’.

4 (5) Section 1611(e)(1)(G) of such Act (42

5 U.S.C. 1382(e)(1)(G)) is amended by inserting

6 ‘‘cash’’ before ‘‘benefit of’’.

7 (6) Section 1614(a)(4) of such Act (42 U.S.C.

8 1382c(a)(4)) is amended by inserting ‘‘or impair9 ment’’ after ‘‘disability’’ each place such term ap10 pears.

11 (7) Section 1614(f)(1) of such Act (42 U.S.C.

12 1382c(f)(1)) is amended by striking ‘‘and the

13 amount of benefits’’ and inserting ‘‘benefits under

14 this title and the amount of any cash benefit under

15 this title’’.

16 (8) Section 1614(f)(2)(A) of such Act (42

17 U.S.C. 1382c(f)(2)(A)) is amended by striking ‘‘and

18 the amount of benefits’’ and inserting ‘‘benefits

19 under this title and the amount of any cash benefit’’.

20 (9) Section 1614(f)(3) of such Act (42 U.S.C.

21 1382c(f)(3)) is amended by striking ‘‘and the

22 amount of benefits’’ and inserting ‘‘benefits under

23 this title and the amount of any cash benefit under

24 this title’’.
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1 (10) Section 1616(e)(1) of such Act (42 U.S.C.

2 1382e(e)(1)) is amended by inserting ‘‘cash’’ before

3 ‘‘supplemental’’.

4 (11) Section 1621(a) of such Act (42 U.S.C.

5 1382j(a)) is amended by striking ‘‘and the amount

6 of benefits’’ and inserting ‘‘benefits under this title

7 and the amount of any cash benefit under this title’’.

8 (12) Section 1631(a)(4) of such Act (42 U.S.C.

9 1383(a)(4)) is amended by inserting ‘‘cash’’ before

10 ‘‘benefits’’ the 1st place such term appears in each

11 of subparagraphs (A) and (B).

12 (13) Section 1631(a)(7)(A) of such Act (42

13 U.S.C. 1383(a)(7)(A)) is amended by inserting

14 ‘‘cash’’ before ‘‘benefits based’’.

15 (14) Section 1631(a)(8)(A) of such Act (42

16 U.S.C. 1383(a)(8)(A)) is amended by striking ‘‘ben17 efits based on disability or blindness under this

18 title’’ and inserting ‘‘benefits under this title (other

19 than by reason of age)’’.

20 (15) Section 1631(c) of such Act (42 U.S.C.

21 1383(c)) is amended—

22 (A) by striking ‘‘payment’’ each place such

23 term appears and inserting ‘‘benefits’’; and

24 (B) by striking ‘‘payments’’ each place

25 such term appears and inserting ‘‘benefits’’.
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1 (16) Section 1631(e) of such Act (42 U.S.C.

2 1383(e)) is amended—

3 (A) in paragraph (1)(B), by striking

4 ‘‘amounts of such benefits’’ and inserting

5 ‘‘amounts of cash benefits under this title’’;

6 (B) in paragraph (2), by inserting ‘‘cash’’

7 before ‘‘benefits’’ each place such term appears;

8 (C) by redesignating the 2nd paragraph

9 (6) and paragraph (7) as paragraphs (7) and

10 (8), respectively; and

11 (D) in paragraph (7) (as so redesignated),

12 by inserting ‘‘cash’’ before ‘‘benefits’’ each place

13 such term appears.

14 (17) Section 1631(g)(2) of such Act (42 U.S.C.

15 1383(g)(2)) is amended by striking ‘‘supplemental

16 security income’’ and inserting ‘‘cash’’.

17 (18) Section 1635(a) of such Act (42 U.S.C.

18 1383d(a)) is amended by striking ‘‘by reason of dis19 ability or blindness’’.

20 (e) TEMPORARY ELIGIBILITY FOR CASH BENEFITS

21 FOR POOR DISABLED CHILDREN RESIDING IN STATES

22 APPLYING ALTERNATIVE INCOME ELIGIBILITY STAND23 ARDS UNDER MEDICAID.—

24 (1) IN GENERAL.—For the period beginning

25 upon the 1st day of the 1st month that begins 90
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1 or more days after the date of the enactment of this

2 Act and ending upon the close of fiscal year 1996,

3 an individual described in paragraph (2) shall be

4 considered to be eligible for cash benefits under title

5 XVI of the Social Security Act, by reason of disabil6 ity notwithstanding that the individual does not

7 meet any of the conditions described in section

8 1614(a)(3)(A)(ii)(III) of such Act.

9 (2) REQUIREMENTS.—For purposes of para10 graph (1), an individual described in this paragraph

11 is an individual who—

12 (A) has not attained 18 years of age;

13 (B) meets the conditions described in

14 subclauses (I) and (II) of section

15 1614(a)(3)(A)(ii) of the Social Security Act;

16 (C) resides in a State that, pursuant to

17 section 1902(f) of such Act, restricts eligibility

18 for medical assistance under title XIX of such

19 Act with respect to aged, blind, and disabled in20 dividuals; and

21 (D) is not eligible for medical assistance

22 under the State plan under such title XIX.

23 (f) REDUCTION IN CASH BENEFITS PAYABLE TO IN24 STITUTIONALIZED CHILDREN WHOSE MEDICAL COSTS

25 ARE COVERED BY PRIVATE INSURANCE.—Section
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1 1611(e)(1)(B) of the Social Security Act (42 U.S.C.

2 1382(e)(1)(B)) is amended by inserting ‘‘or under any

3 health insurance policy issued by a private provider of

4 such insurance’’ after ‘‘title XIX’’.

5 (g) APPLICABILITY.—

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the amendments made by subsections

8 (a)(1), (c), (d) and (f), and section 1645(b)(2) of the

9 Social Security Act (as added by the amendment

10 made by subsection (b) of this section), shall apply

11 to benefits for months beginning 90 or more days

12 after the date of the enactment of this Act, without

13 regard to whether regulations have been issued to

14 implement such amendments.

15 (2) DELAYED APPLICABILITY TO CURRENT SSI

16 RECIPIENTS OF ELIGIBILITY RESTRICTIONS.—The

17 amendments made by subsection (a)(1) shall not

18 apply, during the first 6 months that begin after the

19 month in which this Act becomes law, to an individ20 ual who is a recipient of cash supplemental security

21 income benefits under title XVI of the Social Secu22 rity Act for the month in which this Act becomes

23 law.

24 (h) REGULATIONS.—Within 3 months after the date

25 of the enactment of this Act—
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1 (1) the Commissioner of Social Security shall

2 prescribe such regulations as may be necessary to

3 implement the amendments made by subsections

4 (a)(1), (c), (d), and (f) and to implement subsection

5 (e); and

6 (2) the Secretary of Health and Human Serv7 ices shall prescribe such regulations as may be nec8 essary to implement section 1645(b)(2) of the Social

9 Security Act, as added by the amendment made by

10 subsection (b) of this section.

11 SEC. 14603. EXAMINATION OF MENTAL LISTINGS USED TO

12 DETERMINE ELIGIBILITY OF CHILDREN FOR

13 SSI BENEFITS BY REASON OF DISABILITY.

14 Section 202(e)(2) of the Social Security Independ15 ence and Program Improvements Act of 1994 (42 U.S.C.

16 1382 note) is amended—

17 (1) by striking ‘‘and’’ at the end of subpara18 graph (F); and

19 (2) by redesignating subparagraph (G) as sub20 paragraph (H) and inserting after subparagraph (F)

21 the following:

22 ‘‘(G) whether the criteria in the mental dis23 orders listings in the Listings of Impairments set

24 forth in appendix 1 of subpart P of part 404 of title

25 20, Code of Federal Regulations, are appropriate to
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1 ensure that eligibility of individuals who have not at2 tained 18 years of age for cash benefits under the

3 supplemental security income program by reason of

4 disability is limited to those who have serious dis5 abilities and for whom such benefits are necessary to

6 improve their condition or quality of life; and’’.

7 SEC. 14604. LIMITATION ON PAYMENTS TO PUERTO RICO,

8 THE VIRGIN ISLANDS, AND GUAM UNDER

9 PROGRAMS OF AID TO THE AGED, BLIND, OR

10 DISABLED.

11 Section 1108 of the Social Security Act (42 U.S.C.

12 1308), as amended by section 14104(e)(1) of this Act, is

13 amended by inserting before ‘‘The total’’ the following:

14 ‘‘(a) PROGRAMS OF AID TO THE AGED, BLIND, OR

15 DISABLED.—The total amount certified by the Secretary

16 of Health and Human Services under titles I, X, XIV, and

17 XVI (as in effect without regard to the amendment made

18 by section 301 of the Social Security Amendments of

19 1972)—

20 ‘‘(1) for payment to Puerto Rico shall not ex21 ceed $18,053,940;

22 ‘‘(2) for payment to the Virgin Islands shall not

23 exceed $473,659; and

24 ‘‘(3) for payment to Guam shall not exceed

25 $900,718.
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1 ‘‘(b) MEDICAID PROGRAMS.—’’.

2 SEC. 14605. REPEAL OF MAINTENANCE OF EFFORT RE3 QUIREMENTS APPLICABLE TO OPTIONAL

4 STATE PROGRAMS FOR SUPPLEMENTATION

5 OF SSI BENEFITS.

6 Section 1618 of the Social Security Act (42 U.S.C.

7 1382g) is hereby repealed.

8 SEC. 14606. DENIAL OF SSI BENEFITS FOR 10 YEARS TO IN9 DIVIDUALS FOUND TO HAVE FRAUDULENTLY

10 MISREPRESENTED RESIDENCE IN ORDER TO

11 OBTAIN BENEFITS SIMULTANEOUSLY IN 2 OR

12 MORE STATES.

13 Section 1614(a) of the Social Security Act (42 U.S.C.

14 1382c(a)) is amended by adding at the end the following:

15 ‘‘(5) An individual shall not be considered an eligible

16 individual for purposes of this title during the 10-year pe17 riod beginning on the date the individual is found by a

18 State to have made, or is convicted in Federal or State

19 court of having made, a fraudulent statement or represen20 tation with respect to the place of residence of the individ21 ual in order to receive benefits simultaneously from 2 or

22 more States under programs that are funded under part

23 A of title IV, title XIX, the consolidated program of food

24 assistance under chapter 2 of subtitle E of title XIV of

25 the Personal Responsibility Act of 1995, or the Food
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1 Stamp Act of 1977 (as in effect before the effective date

2 of such chapter), or benefits in 2 or more States under

3 the supplemental security income program under title

4 XVI.’’.

5 SEC. 14607. DENIAL OF SSI BENEFITS FOR FUGITIVE FEL6 ONS AND PROBATION AND PAROLE VIOLA7 TORS.

8 (a) IN GENERAL.—Section 1611(c) of the Social Se9 curity Act (42 U.S.C. 1382(e)), as amended by section

10 14601(b)(1) of this Act, is amended by inserting after

11 paragraph (2) the following:

12 ‘‘(3) A person shall not be an eligible individual

13 or eligible spouse for purposes of this title with re14 spect to any month if, throughout the month, the

15 person is—

16 ‘‘(A) fleeing to avoid prosecution, or cus17 tody or confinement after conviction, under the

18 laws of the place from which the person flees,

19 for a crime, or an attempt to commit a crime,

20 which is a felony under the laws of the place

21 from which the person flees, or which, in the

22 case of the State of New Jersey, is a high mis23 demeanor under the laws of such State; or

24 ‘‘(B) violating a condition of probation or

25 parole imposed under Federal or State law.’’.
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1 (b) EXCHANGE OF INFORMATION WITH LAW EN2 FORCEMENT AGENCIES.—Section 1631(e) of such Act (42

3 U.S.C. 1383(e)) is amended by inserting after paragraph

4 (3) the following:

5 ‘‘(4) Notwithstanding any other provision of law, the

6 Commissioner shall furnish any Federal, State, or local

7 law enforcement officer, upon the request of the officer,

8 with the current address of any recipient of benefits under

9 this title, if the officer furnishes the agency with the name

10 of the recipient and notifies the agency that—

11 ‘‘(A) the recipient—

12 ‘‘(i) is fleeing to avoid prosecution, or cus13 tody or confinement after conviction, under the

14 laws of the place from which the person flees,

15 for a crime, or an attempt to commit a crime,

16 which is a felony under the laws of the place

17 from which the person flees, or which, in the

18 case of the State of New Jersey, is a high mis19 demeanor under the laws of such State;

20 ‘‘(ii) is violating a condition of probation or

21 parole imposed under Federal or State law; or

22 ‘‘(iii) has information that is necessary for

23 the officer to conduct the officer’s official du24 ties;
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1 ‘‘(B) the location or apprehension of the recipi2 ent is within the official duties of the officer; and

3 ‘‘(C) the request is made in the proper exercise

4 of such duties.’’.

5 SEC. 14608. REAPPLICATION REQUIREMENTS FOR ADULTS

6 RECEIVING SSI BENEFITS BY REASON OF DIS7 ABILITY.

8 (a) IN GENERAL.—Section 1614(a)(3)(G) of the So9 cial Security Act (42 U.S.C. 1382c(a)(3)(G)), as amended

10 by section 14602(c)(2) of this Act, is amended by adding

11 at the end the following clause:

12 ‘‘(iv) In the case of an individual who has attained

13 18 years of age and for whom a determination has been

14 made of eligibility for a benefit under this title by reason

15 of disability, the following applies:

16 ‘‘(I) Subject to the provisions of this clause, the

17 determination of eligibility is effective for the 3-year

18 period beginning on the date of the determination,

19 and the eligibility of the individual lapses unless a

20 determination of continuing eligibility is made before

21 the end of such period, and before the end of each

22 subsequent 3-year period. This subclause ceases to

23 apply to the individual upon the individual attaining

24 65 years of age. This subclause does not apply to

25 the individual if the individual has an impairment
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1 that is not expected to improve (or a combination of

2 impairments that are not expected to improve).

3 ‘‘(II) With respect to a determination under

4 subclause (I) of whether the individual continues to

5 be eligible for the benefit (in this clause referred to

6 as a ‘redetermination’), the Commissioner may not

7 make the redetermination unless the individual sub8 mits to the Commissioner an application requesting

9 the redetermination. If such an application is sub10 mitted, the Commissioner shall make the redeter11 mination. This subclause is subject to subclause (V).

12 ‘‘(III) If as of the date on which this clause

13 takes effect the individual has been receiving the

14 benefit for three years or less, the first period under

15 subclause (I) for the individual is deemed to end on

16 the expiration of the period beginning on the date on

17 which this clause takes effect and continuing

18 through a number of months equal to 12 plus a

19 number equal to 36 minus the number of months

20 the individual has been receiving the benefit.

21 ‘‘(IV) If as of the date on which this clause

22 takes effect the individual has been receiving the

23 benefit for five years or less, but for more than three

24 years, the first period under subclause (I) for the in25 dividual is deemed to end on the expiration of the
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1 1-year period beginning on the date on which this

2 clause takes effect.

3 ‘‘(V) If as of the date on which this clause

4 takes effect the individual has been receiving the

5 benefit for more than five years, the Commissioner

6 shall make redeterminations under subclause (I) and

7 may not require the individual to submit applica8 tions for the redeterminations. The first 3-year pe9 riod under subclause (I) for the individual is deemed

10 to begin upon the expiration of the period beginning

11 on the date on which this clause takes effect and

12 ending upon the termination of a number of years

13 equal to the lowest number (greater than zero) that

14 can be obtained by subtracting the number of years

15 that the individual has been receiving the benefit

16 from a number that is a multiple of three.

17 ‘‘(VI) If the individual first attains 18 years of

18 age on or after the date on which this clause takes

19 effect, the first 3-year period under subclause (I) for

20 the individual is deemed to end on the date on which

21 the individual attains such age.

22 ‘‘(VII) Not later than one year prior to the date

23 on which a determination under subclause (I) ex24 pires, the Commissioner shall (except in the case of

25 an individual to whom subclause (V) applies) provide
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1 to the individual a written notice explaining the ap2 plicability of this clause to the individual, including

3 an explanation of the effect of failing to submit the

4 application. If the individual submits the application

5 not later than 180 days prior to such date and the

6 Commissioner does not make the redetermination

7 before such date, the Commissioner shall continue to

8 provide the benefit pending the redetermination and

9 shall publish in the Federal Register a notice that

10 the Commissioner was unable to make the redeter11 mination by such date.

12 ‘‘(VIII) If the individual fails to submit the ap13 plication under subclause (II) by the end of the ap14 plicable period under subclause (I), the individual

15 may apply for a redetermination. The Commissioner

16 shall make the redetermination for the individual

17 only after making redeterminations for individuals

18 for whom eligibility has not lapsed pursuant to

19 subclause (I).’’.

20 (b) EFFECTIVE DATE.—The amendment made by

21 subsection (a) takes effect upon the expiration of the 9-

22 month period beginning on the date of the enactment of

23 this Act.

24 (c) CONFORMING REPEAL.—Section 207 of the So25 cial Security Independence and Program Improvements
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1 Act of 1994 (42 U.S.C. 1382 note; 108 Stat. 1516) is

2 hereby repealed.

3 SEC. 14609. STRIKING OF RESTRICTIONS REGARDING DE4 TERMINATION OF INELIGIBILITY.

5 Section 1614(a) of the Social Security Act (42 U.S.C.

6 1382c(a)) is amended by striking paragraph (4).

7 SEC. 14610. NARROWING OF SSI ELIGIBILITY ON BASIS OF

8 MENTAL IMPAIRMENTS.

9 (a) IN GENERAL.—Section 1614(a)(3)(A)(i) of the

10 Social Security Act (42 U.S.C. 1382c(a)), as designated

11 by section 14602(a)(1)(A) of this Act, is amended by add12 ing at the end the following sentence: ‘‘In making deter13 minations under this clause regarding the severity of men14 tal impairments, the Secretary shall revise the regulations

15 under subpart P of part 404 of title 20, Code of Federal

16 Regulations, to accomplish the result that (relative to such

17 regulations as in effect prior to the date on which this

18 sentence takes effect) less weight is given to criteria re19 garding concentration, persistence (and pace), and ability

20 to tolerate increased mental demand associated with com21 petitive work, and that, accordingly, the eligibility criteria

22 regarding mental impairments are narrowed.’’.

23 (b) FINAL REGULATIONS.—The final rule for the

24 regulations required in subsection (a) shall be issued be25 fore the expiration of the 9-month period beginning on the
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1 date of the enactment of this Act,and shall take effect

2 upon the expiration of such period.

3 Subtitle G—Child Support

4 SEC. 14700. REFERENCES.

5 Except as otherwise specifically provided, wherever in

6 this subtitle an amendment is expressed in terms of an

7 amendment to or repeal of a section or other provision,

8 the reference shall be considered to be made to that sec9 tion or other provision of the Social Security Act.

10 CHAPTER 1—ELIGIBILITY FOR SERVICES;

11 DISTRIBUTION OF PAYMENTS

12 SEC. 14701. STATE OBLIGATION TO PROVIDE CHILD SUP13 PORT ENFORCEMENT SERVICES.

14 (a) STATE PLAN REQUIREMENTS.—Section 454 (42

15 U.S.C. 654) is amended—

16 (1) by striking paragraph (4) and inserting the

17 following:

18 ‘‘(4) provide that the State will—

19 ‘‘(A) provide services relating to the estab20 lishment of paternity or the establishment,

21 modification, or enforcement of child support

22 obligations, as appropriate, under the plan with

23 respect to—

24 ‘‘(i) each child for whom cash assist25 ance is provided under the State program
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1 funded under part A of this title, benefits

2 or services are provided under the State

3 program funded under part B of this title,

4 or medical assistance is provided under the

5 State plan approved under title XIX, un6 less the State agency administering the

7 plan determines (in accordance with para8 graph (28)) that it is against the best in9 terests of the child to do so; and

10 ‘‘(ii) any other child, if an individual

11 applies for such services with respect to

12 the child; and

13 ‘‘(B) enforce any support obligation estab14 lished with respect to—

15 ‘‘(i) a child with respect to whom the

16 State provides services under the plan; or

17 ‘‘(ii) the custodial parent of such a

18 child.’’; and

19 (2) in paragraph (6)—

20 (A) by striking ‘‘provide that’’ and insert21 ing ‘‘provide that—’’;

22 (B) by striking subparagraph (A) and in23 serting the following:
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1 ‘‘(A) services under the plan shall be made

2 available to nonresidents on the same terms as

3 to residents;’’;

4 (C) in subparagraph (B), by inserting ‘‘on

5 individuals not receiving assistance under any

6 State program funded under part A’’ after

7 ‘‘such services shall be imposed’’;

8 (D) in each of subparagraphs (B), (C),

9 (D), and (E)—

10 (i) by indenting the subparagraph in

11 the same manner as, and aligning the left

12 margin of the subparagraph with the left

13 margin of, the matter inserted by subpara14 graph (B) of this paragraph; and

15 (ii) by striking the final comma and

16 inserting a semicolon; and

17 (E) in subparagraph (E), by indenting

18 each of clauses (i) and (ii) 2 additional ems.

19 (b) CONFORMING AMENDMENTS.—

20 (1) Section 452(b) (42 U.S.C. 652(b)) is

21 amended by striking ‘‘454(6)’’ and inserting

22 ‘‘454(4)’’.

23 (2) Section 452(g)(2)(A) (42 U.S.C.

24 652(g)(2)(A)) is amended by striking ‘‘454(6)’’ each

25 place it appears and inserting ‘‘454(4)(A)(ii)’’.
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1 (3) Section 466(a)(3)(B) (42 U.S.C.

2 666(a)(3)(B)) is amended by striking ‘‘in the case of

3 overdue support which a State has agreed to collect

4 under section 454(6)’’ and inserting ‘‘in any other

5 case’’.

6 (4) Section 466(e) (42 U.S.C. 666(e)) is

7 amended by striking ‘‘paragraph (4) or (6) of sec8 tion 454’’ and inserting ‘‘section 454(4)’’.

9 SEC. 14702. DISTRIBUTION OF CHILD SUPPORT COLLEC10 TIONS.

11 (a) IN GENERAL.—Section 457 (42 U.S.C. 657) is

12 amended to read as follows:

13 ‘‘SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

14 ‘‘(a) IN GENERAL.—An amount collected on behalf

15 of a family as support by a State pursuant to a plan ap16 proved under this part shall be distributed as follows:

17 ‘‘(1) FAMILIES RECEIVING CASH ASSISTANCE.—

18 In the case of a family receiving cash assistance

19 from the State, the State shall—

20 ‘‘(A) retain, or distribute to the family, the

21 State share of the amount so collected; and

22 ‘‘(B) pay to the Federal Government the

23 Federal share of the amount so collected.
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1 ‘‘(2) FAMILIES THAT FORMERLY RECEIVED

2 CASH ASSISTANCE.—In the case of a family that for3 merly received cash assistance from the State:

4 ‘‘(A) CURRENT SUPPORT PAYMENTS.—To

5 the extent that the amount so collected does not

6 exceed the amount required to be paid to the

7 family for the month in which collected, the

8 State shall distribute the amount so collected to

9 the family.

10 ‘‘(B) PAYMENTS OF ARREARAGES.—To the

11 extent that the amount so collected exceeds the

12 amount required to be paid to the family for

13 the month in which collected, the State shall

14 distribute the amount so collected as follows:

15 ‘‘(i) DISTRIBUTION TO THE FAMILY

16 TO SATISFY ARREARAGES THAT ACCRUED

17 BEFORE OR AFTER THE FAMILY RECEIVED

18 CASH ASSISTANCE.—The State shall dis19 tribute the amount so collected to the fam20 ily to the extent necessary to satisfy any

21 support arrears with respect to the family

22 that accrued before or after the family re23 ceived cash assistance from the State.

24 ‘‘(ii) REIMBURSEMENT OF GOVERN25 MENTS FOR ASSISTANCE PROVIDED TO
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1 THE FAMILY.—To the extent that clause

2 (i) does not apply to the amount, the State

3 shall retain the State share of the amount

4 so collected, and pay to the Federal Gov5 ernment the Federal share of the amount

6 so collected, to the extent necessary to re7 imburse amounts paid to the family as

8 cash assistance from the State.

9 ‘‘(iii) DISTRIBUTION OF THE REMAIN10 DER TO THE FAMILY.—To the extent that

11 neither clause (i) nor clause (ii) applies to

12 the amount so collected, the State shall

13 distribute the amount to the family.

14 ‘‘(3) FAMILIES THAT NEVER RECEIVED CASH

15 ASSISTANCE.—In the case of any other family, the

16 State shall distribute the amount so collected to the

17 family.

18 ‘‘(b) DEFINITIONS.—As used in subsection (a):

19 ‘‘(1) CASH ASSISTANCE.—The term ‘cash as20 sistance from the State’ means—

21 ‘‘(A) cash assistance under the State pro22 gram funded under part A or under the State

23 plan approved under part A of this title (as in

24 effect before October 1, 1995); or
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1 ‘‘(B) cash benefits under the State pro2 gram funded under part B or under the State

3 plan approved under part B or E of this title

4 (as in effect before October 1, 1995).

5 ‘‘(2) FEDERAL SHARE.—The term ‘Federal

6 share’ means, with respect to an amount collected by

7 the State to satisfy a support obligation owed to a

8 family for a time period—

9 ‘‘(A) the greatest Federal medical assist10 ance percentage in effect for the State for fiscal

11 year 1995 or any succeeding fiscal year; or

12 ‘‘(B) if support is not owed to the family

13 for any month for which the family received aid

14 to families with dependent children under the

15 State plan approved under part A of this title

16 (as in effect before October 1, 1995), the Fed17 eral reimbursement percentage for the fiscal

18 year in which the time period occurs.

19 ‘‘(3) FEDERAL MEDICAL ASSISTANCE PERCENT20 AGE.—The term ‘Federal medical assistance per21 centage’ means—

22 ‘‘(A) the Federal medical assistance per23 centage (as defined in section 1118), in the case

24 of Puerto Rico, the Virgin Islands, Guam, and

25 American Samoa; or
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1 ‘‘(B) the Federal medical assistance per2 centage (as defined in section 1905(b)) in the

3 case of any other State.

4 ‘‘(4) FEDERAL REIMBURSEMENT PERCENT5 AGE.—The term ‘Federal reimbursement percentage’

6 means, with respect to a fiscal year—

7 ‘‘(A) the total amount paid to the State

8 under section 403 for the fiscal year; divided by

9 ‘‘(B) the total amount expended by the

10 State to carry out the State program under

11 part A during the fiscal year.

12 ‘‘(5) STATE SHARE.—The term ‘State share’

13 means 100 percent minus the Federal share.

14 ‘‘(c) CONTINUATION OF SERVICES FOR FAMILIES

15 CEASING TO RECEIVE ASSISTANCE UNDER THE STATE

16 PROGRAM FUNDED UNDER PART A.—When a family with

17 respect to which services are provided under a State plan

18 approved under this part ceases to receive assistance

19 under the State program funded under part A, the State

20 shall provide appropriate notice to the family and continue

21 to provide such services, subject to the same conditions

22 and on the same basis as in the case of individuals to

23 whom services are furnished under section 454, except

24 that an application or other request to continue services
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1 shall not be required of such a family and section

2 454(6)(B) shall not apply to the family.’’.

3 (b) EFFECTIVE DATE.—

4 (1) GENERAL RULE.—Except as provided in

5 paragraph (2), the amendment made by subsection

6 (a) shall become effective on October 1, 1999.

7 (2) EARLIER EFFECTIVE DATE FOR RULES RE8 LATING TO DISTRIBUTION OF SUPPORT COLLECTED

9 FOR FAMILIES RECEIVING CASH ASSISTANCE.—Sec10 tion 457(a)(1) of the Social Security Act, as added

11 by the amendment made by subsection (a), shall be12 come effective on October 1, 1995.

13 SEC. 14703. PRIVACY SAFEGUARDS.

14 (a) STATE PLAN REQUIREMENT.—Section 454 (42

15 U.S.C. 654) is amended—

16 (1) by striking ‘‘and’’ at the end of paragraph

17 (23);

18 (2) by striking the period at the end of para19 graph (24) and inserting ‘‘; and’’; and

20 (3) by adding after paragraph (24) the follow21 ing:

22 ‘‘(25) will have in effect safeguards, applicable

23 to all confidential information handled by the State

24 agency, that are designed to protect the privacy

25 rights of the parties, including—
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1 ‘‘(A) safeguards against unauthorized use

2 or disclosure of information relating to proceed3 ings or actions to establish paternity, or to es4 tablish or enforce support;

5 ‘‘(B) prohibitions against the release of in6 formation on the whereabouts of one party to

7 another party against whom a protective order

8 with respect to the former party has been en9 tered; and

10 ‘‘(C) prohibitions against the release of in11 formation on the whereabouts of one party to

12 another party if the State has reason to believe

13 that the release of the information may result

14 in physical or emotional harm to the former

15 party.’’.

16 (b) EFFECTIVE DATE.—The amendment made by

17 subsection (a) shall become effective on October 1, 1997.

18 CHAPTER 2—LOCATE AND CASE

19 TRACKING

20 SEC. 14711. STATE CASE REGISTRY.

21 Section 454A, as added by section 14745(a)(2) of

22 this Act, is amended by adding at the end the following:

23 ‘‘(e) STATE CASE REGISTRY.—

24 ‘‘(1) CONTENTS.—The automated system re25 quired by this section shall include a registry (which
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1 shall be known as the ‘State case registry’) that con2 tains records with respect to—

3 ‘‘(A) each case in which services are being

4 provided by the State agency under the State

5 plan approved under this part; and

6 ‘‘(B) each support order established or

7 modified in the State on or after October 1,

8 1998.

9 ‘‘(2) LINKING OF LOCAL REGISTRIES.—The

10 State case registry may be established by linking

11 local case registries of support orders through an

12 automated information network, subject to this sec13 tion.

14 ‘‘(3) USE OF STANDARDIZED DATA ELE15 MENTS.—Such records shall use standardized data

16 elements for both parents (such as names, social se17 curity numbers and other uniform identification

18 numbers, dates of birth, and case identification

19 numbers), and contain such other information (such

20 as on case status) as the Secretary may require.

21 ‘‘(4) PAYMENT RECORDS.—Each case record in

22 the State case registry with respect to which services

23 are being provided under the State plan approved

24 under this part and with respect to which a support
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1 order has been established shall include a record

2 of—

3 ‘‘(A) the amount of monthly (or other peri4 odic) support owed under the order, and other

5 amounts (including arrears, interest or late

6 payment penalties, and fees) due or overdue

7 under the order;

8 ‘‘(B) any amount described in subpara9 graph (A) that has been collected;

10 ‘‘(C) the distribution of such collected

11 amounts;

12 ‘‘(D) the birth date of any child for whom

13 the order requires the provision of support; and

14 ‘‘(E) the amount of any lien imposed with

15 respect to the order pursuant to section

16 466(a)(4).

17 ‘‘(5) UPDATING AND MONITORING.—The State

18 agency operating the automated system required by

19 this section shall promptly establish and maintain,

20 and regularly monitor, case records in the State case

21 registry with respect to which services are being pro22 vided under the State plan approved under this part,

23 on the basis of—
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1 ‘‘(A) information on administrative actions

2 and administrative and judicial proceedings and

3 orders relating to paternity and support;

4 ‘‘(B) information obtained from compari5 son with Federal, State, or local sources of in6 formation;

7 ‘‘(C) information on support collections

8 and distributions; and

9 ‘‘(D) any other relevant information.

10 ‘‘(f) INFORMATION COMPARISONS AND OTHER DIS11 CLOSURES OF INFORMATION.—The State shall use the

12 automated system required by this section to extract infor13 mation from (at such times, and in such standardized for14 mat or formats, as may be required by the Secretary), to

15 share and compare information with, and to receive infor16 mation from, other data bases and information compari17 son services, in order to obtain (or provide) information

18 necessary to enable the State agency (or the Secretary or

19 other State or Federal agencies) to carry out this part,

20 subject to section 6103 of the Internal Revenue Code of

21 1986. Such information comparison activities shall include

22 the following:

23 ‘‘(1) FEDERAL CASE REGISTRY OF CHILD SUP24 PORT ORDERS.—Furnishing to the Federal Case

25 Registry of Child Support Orders established under
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1 section 453(h) (and update as necessary, with infor2 mation including notice of expiration of orders) the

3 minimum amount of information on child support

4 cases recorded in the State case registry that is nec5 essary to operate the registry (as specified by the

6 Secretary in regulations).

7 ‘‘(2) FEDERAL PARENT LOCATOR SERVICE.—

8 Exchanging information with the Federal Parent

9 Locator Service for the purposes specified in section

10 453.

11 ‘‘(3) TEMPORARY FAMILY ASSISTANCE AND

12 MEDICAID AGENCIES.—Exchanging information with

13 State agencies (of the State and of other States) ad14 ministering programs funded under part A, pro15 grams operated under State plans under title XIX,

16 and other programs designated by the Secretary, as

17 necessary to perform State agency responsibilities

18 under this part and under such programs.

19 ‘‘(4) INTRA- AND INTERSTATE INFORMATION

20 COMPARISONS.—Exchanging information with other

21 agencies of the State, agencies of other States, and

22 interstate information networks, as necessary and

23 appropriate to carry out (or assist other States to

24 carry out) the purposes of this part.’’.
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1 SEC. 14712. COLLECTION AND DISBURSEMENT OF SUPPORT

2 PAYMENTS.

3 (a) STATE PLAN REQUIREMENT.—Section 454 (42

4 U.S.C. 654), as amended by section 14703(a) of this Act,

5 is amended—

6 (1) by striking ‘‘and’’ at the end of paragraph

7 (24);

8 (2) by striking the period at the end of para9 graph (25) and inserting ‘‘; and’’; and

10 (3) by adding after paragraph (25) the follow11 ing:

12 ‘‘(26) provide that, on and after October 1,

13 1998, the State agency will—

14 ‘‘(A) operate a State disbursement unit in

15 accordance with section 454B; and

16 ‘‘(B) have sufficient State staff (consisting

17 of State employees) and (at State option) con18 tractors reporting directly to the State agency

19 to—

20 ‘‘(i) monitor and enforce support col21 lections through the unit (including carry22 ing out the automated data processing re23 sponsibilities described in section 454A(g));

24 and

25 ‘‘(ii) take the actions described in sec26 tion 466(c)(1) in appropriate cases.’’.
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1 (b) ESTABLISHMENT OF STATE DISBURSEMENT

2 UNIT.—Part D of title IV (42 U.S.C. 651–669), as

3 amended by section 14745(a)(2) of this Act, is amended

4 by inserting after section 454A the following:

5 ‘‘SEC. 454B. COLLECTION AND DISBURSEMENT OF SUP6 PORT PAYMENTS.

7 ‘‘(a) STATE DISBURSEMENT UNIT.—

8 ‘‘(1) IN GENERAL.—In order for a State to

9 meet the requirements of this section, the State

10 agency must establish and operate a unit (which

11 shall be known as the ‘State disbursement unit’) for

12 the collection and disbursement of payments under

13 support orders in all cases being enforced by the

14 State pursuant to section 454(4).

15 ‘‘(2) OPERATION.—The State disbursement

16 unit shall be operated—

17 ‘‘(A) directly by the State agency (or 2 or

18 more State agencies under a regional coopera19 tive agreement), or (to the extent appropriate)

20 by a contractor responsible directly to the State

21 agency; and

22 ‘‘(B) in coordination with the automated

23 system established by the State pursuant to

24 section 454A.
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1 ‘‘(3) LINKING OF LOCAL DISBURSEMENT

2 UNITS.—The State disbursement unit may be estab3 lished by linking local disbursement units through

4 an automated information network, subject to this

5 section. The Secretary must agree that the system

6 will not cost more nor take more time to establish

7 than a centralized system. In addition, employers

8 shall be given 1 location to which income withhold9 ing is sent.

10 ‘‘(b) REQUIRED PROCEDURES.—The State disburse11 ment unit shall use automated procedures, electronic proc12 esses, and computer-driven technology to the maximum

13 extent feasible, efficient, and economical, for the collection

14 and disbursement of support payments, including proce15 dures—

16 ‘‘(1) for receipt of payments from parents, em17 ployers, and other States, and for disbursements to

18 custodial parents and other obligees, the State agen19 cy, and the agencies of other States;

20 ‘‘(2) for accurate identification of payments;

21 ‘‘(3) to ensure prompt disbursement of the cus22 todial parent’s share of any payment; and

23 ‘‘(4) to furnish to any parent, upon request,

24 timely information on the current status of support
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1 payments under an order requiring payments to be

2 made by or to the parent.

3 ‘‘(c) TIMING OF DISBURSEMENTS.—The State dis4 bursement unit shall distribute all amounts payable under

5 section 457(a) within 2 business days after receipt from

6 the employer or other source of periodic income, if suffi7 cient information identifying the payee is provided.

8 ‘‘(d) BUSINESS DAY DEFINED.—As used in this sec9 tion, the term ‘business day’ means a day on which State

10 offices are open for regular business.’’.

11 (c) USE OF AUTOMATED SYSTEM.—Section 454A, as

12 added by section 14745(a)(2) of this Act and as amended

13 by section 14711 of this Act, is amended by adding at

14 the end the following:

15 ‘‘(g) COLLECTION AND DISTRIBUTION OF SUPPORT

16 PAYMENTS.—

17 ‘‘(1) IN GENERAL.—The State shall use the

18 automated system required by this section, to the

19 maximum extent feasible, to assist and facilitate the

20 collection and disbursement of support payments

21 through the State disbursement unit operated under

22 section 454B, through the performance of functions,

23 including, at a minimum—
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1 ‘‘(A) transmission of orders and notices to

2 employers (and other debtors) for the withhold3 ing of wages (and other income)—

4 ‘‘(i) within 2 business days after re5 ceipt (from a court, another State, an em6 ployer, the Federal Parent Locator Service,

7 or another source recognized by the State)

8 of notice of, and the income source subject

9 to, such withholding; and

10 ‘‘(ii) using uniform formats prescribed

11 by the Secretary;

12 ‘‘(B) ongoing monitoring to promptly iden13 tify failures to make timely payment of support;

14 and

15 ‘‘(C) automatic use of enforcement proce16 dures (including procedures authorized pursu17 ant to section 466(c)) where payments are not

18 timely made.

19 ‘‘(2) BUSINESS DAY DEFINED.—As used in

20 paragraph (1), the term ‘business day’ means a day

21 on which State offices are open for regular busi22 ness.’’.

23 (d) EFFECTIVE DATE.—The amendments made by

24 this section shall become effective on October 1, 1998.
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1 SEC. 14713. STATE DIRECTORY OF NEW HIRES.

2 (a) STATE PLAN REQUIREMENT.—Section 454 (42

3 U.S.C. 654), as amended by sections 14703(a) and

4 14712(a) of this Act, is amended—

5 (1) by striking ‘‘and’’ at the end of paragraph

6 (25);

7 (2) by striking the period at the end of para8 graph (26) and inserting ‘‘; and’’; and

9 (3) by adding after paragraph (26) the follow10 ing:

11 ‘‘(27) provide that, on and after October 1,

12 1997, the State will operate a State Directory of

13 New Hires in accordance with section 453A.’’.

14 (b) STATE DIRECTORY OF NEW HIRES.—Part D of

15 title IV (42 U.S.C. 651–669) is amended by inserting

16 after section 453 the following:

17 ‘‘SEC. 453A. STATE DIRECTORY OF NEW HIRES.

18 ‘‘(a) ESTABLISHMENT.—

19 ‘‘(1) IN GENERAL.—Not later than October 1,

20 1997, each State shall establish an automated direc21 tory (to be known as the ‘State Directory of New

22 Hires’) which shall contain information supplied in

23 accordance with subsection (b) by employers and

24 labor organizations on each newly hired employee.

25 ‘‘(2) DEFINITIONS.—As used in this section:

26 ‘‘(A) EMPLOYEE.—The term ‘employee’—
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1 ‘‘(i) means an individual who is an

2 employee within the meaning of chapter 24

3 of the Internal Revenue Code of 1986; and

4 ‘‘(ii) does not include an employee of

5 a Federal or State agency performing in6 telligence or counterintelligence functions,

7 if the head of such agency has determined

8 that reporting pursuant to paragraph (1)

9 with respect to the employee could endan10 ger the safety of the employee or com11 promise an ongoing investigation or intel12 ligence mission.

13 ‘‘(B) GOVERNMENTAL EMPLOYERS.—The

14 term ‘employer’ includes any governmental en15 tity.

16 ‘‘(C) LABOR ORGANIZATION.—The term

17 ‘labor organization’ shall have the meaning

18 given such term in section 2(5) of the National

19 Labor Relations Act, and includes any entity

20 (also known as a ‘hiring hall’) which is used by

21 the organization and an employer to carry out

22 requirements described in section 8(f)(3) of

23 such Act of an agreement between the organiza24 tion and the employer.

25 ‘‘(b) EMPLOYER INFORMATION.—
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1 ‘‘(1) REPORTING REQUIREMENT.—

2 ‘‘(A) IN GENERAL.—Except as provided in

3 subparagraph (B), each employer shall furnish

4 to the Directory of New Hires of the State in

5 which a newly hired employee works a report

6 that contains the name, address, and social se7 curity number of the employee, and the name

8 of, and identifying number assigned under sec9 tion 6109 of the Internal Revenue Code of 1986

10 to, the employer.

11 ‘‘(B) MULTISTATE EMPLOYERS.—An em12 ployer who has employees who are employed in

13 2 or more States may comply with subpara14 graph (A) by transmitting the report described

15 in subparagraph (A) magnetically or electroni16 cally to the State in which the greatest number

17 of employees of the employer are employed.

18 ‘‘(2) TIMING OF REPORT.—The report required

19 by paragraph (1) with respect to an employee shall

20 be made not later than the later of—

21 ‘‘(A) 15 days after the date the employer

22 hires the employee; or

23 ‘‘(B) the date the employee first receives

24 wages or other compensation from the em25 ployer.
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1 ‘‘(c) REPORTING FORMAT AND METHOD.—Each re2 port required by subsection (b) shall be made on a W–

3 4 form or the equivalent, and may be transmitted by first

4 class mail, magnetically, or electronically.

5 ‘‘(d) CIVIL MONEY PENALTIES ON NONCOMPLYING

6 EMPLOYERS.—

7 ‘‘(1) IN GENERAL.—An employer that fails to

8 comply with subsection (b) with respect to an em9 ployee shall be subject to a civil money penalty of—

10 ‘‘(A) $25; or

11 ‘‘(B) $500 if, under State law, the failure

12 is the result of a conspiracy between the em13 ployer and the employee to not supply the re14 quired report or to supply a false or incomplete

15 report.

16 ‘‘(2) APPLICABILITY OF SECTION 1128.—Section

17 1128 (other than subsections (a) and (b) of such

18 section) shall apply to a civil money penalty under

19 paragraph (1) of this subsection in the same manner

20 as such section applies to a civil money penalty or

21 proceeding under section 1128A(a).

22 ‘‘(e) INFORMATION COMPARISONS.—

23 ‘‘(1) IN GENERAL.—Not later than October 1,

24 1997, an agency designated by the State shall, di25 rectly or by contract, conduct automated compari-
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1 sons of the social security numbers reported by em2 ployers pursuant to subsection (b) and the social se3 curity numbers appearing in the records of the State

4 case registry for cases being enforced under the

5 State plan.

6 ‘‘(2) NOTICE OF MATCH.—When an information

7 comparison conducted under paragraph (1) reveals a

8 match with respect to the social security number of

9 an individual required to provide support under a

10 support order, the State Directory of New Hires

11 shall provide the agency administering the State

12 plan approved under this part of the appropriate

13 State with the name, address, and social security

14 number of the employee to whom the social security

15 number is assigned, and the name of, and identify16 ing number assigned under section 6109 of the In17 ternal Revenue Code of 1986 to, the employer.

18 ‘‘(f) TRANSMISSION OF INFORMATION.—

19 ‘‘(1) TRANSMISSION OF WAGE WITHHOLDING

20 NOTICES TO EMPLOYERS.—Within 2 business days

21 after the date information regarding a newly hired

22 employee is entered into the State Directory of New

23 Hires, the State agency enforcing the employee’s

24 child support obligation shall transmit a notice to

25 the employer of the employee directing the employer
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1 to withhold from the wages of the employee an

2 amount equal to the monthly (or other periodic)

3 child support obligation of the employee, unless the

4 employee’s wages are not subject to withholding pur5 suant to section 466(b)(3).

6 ‘‘(2) TRANSMISSIONS TO THE NATIONAL DIREC7 TORY OF NEW HIRES.—

8 ‘‘(A) NEW HIRE INFORMATION.—Within 4

9 business days after the State Directory of New

10 Hires receives information from employers pur11 suant to this section, the State Directory of

12 New Hires shall furnish the information to the

13 National Directory of New Hires.

14 ‘‘(B) WAGE AND UNEMPLOYMENT COM15 PENSATION INFORMATION.—The State Direc16 tory of New Hires shall, on a quarterly basis,

17 furnish to the National Directory of New Hires

18 extracts of the reports required under section

19 303(a)(6) to be made to the Secretary of Labor

20 concerning the wages and unemployment com21 pensation paid to individuals, by such dates, in

22 such format, and containing such information

23 as the Secretary of Health and Human Services

24 shall specify in regulations.
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1 ‘‘(3) BUSINESS DAY DEFINED.—As used in this

2 subsection, the term ‘business day’ means a day on

3 which State offices are open for regular business.

4 ‘‘(g) OTHER USES OF NEW HIRE INFORMATION.—

5 ‘‘(1) LOCATION OF CHILD SUPPORT OBLI6 GORS.—The agency administering the State plan ap7 proved under this part shall use information received

8 pursuant to subsection (e)(2) to locate individuals

9 for purposes of establishing paternity and establish10 ing, modifying, and enforcing child support obliga11 tions.

12 ‘‘(2) VERIFICATION OF ELIGIBILITY FOR CER13 TAIN PROGRAMS.—A State agency responsible for

14 administering a program specified in section 1137(b)

15 shall have access to information reported by employ16 ers pursuant to subsection (b) of this section for

17 purposes of verifying eligibility for the program.

18 ‘‘(3) ADMINISTRATION OF EMPLOYMENT SECU19 RITY AND WORKERS COMPENSATION.—State agen20 cies operating employment security and workers’

21 compensation programs shall have access to informa22 tion reported by employers pursuant to subsection

23 (b) for the purposes of administering such pro24 grams.’’.
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1 SEC. 14714. AMENDMENTS CONCERNING INCOME WITH2 HOLDING.

3 (a) MANDATORY INCOME WITHHOLDING.—

4 (1) IN GENERAL.—Section 466(a)(1) (42

5 U.S.C. 666(a)(1)) is amended to read as follows:

6 ‘‘(1) INCOME WITHHOLDING.—

7 ‘‘(A) UNDER ORDERS ENFORCED UNDER

8 THE STATE PLAN.—Procedures described in

9 subsection (b) for the withholding from income

10 of amounts payable as support in cases subject

11 to enforcement under the State plan.

12 ‘‘(B) UNDER CERTAIN ORDERS PREDATING

13 CHANGE IN REQUIREMENT.—Procedures under

14 which the wages of a person with a support ob15 ligation imposed by a support order issued (or

16 modified) in the State before October 1, 1996,

17 if not otherwise subject to withholding under

18 subsection (b), shall become subject to with19 holding as provided in subsection (b) if arrear20 ages occur, without the need for a judicial or

21 administrative hearing.’’.

22 (2) CONFORMING AMENDMENTS.—

23 (A) Section 466(a)(8)(B)(iii) (42 U.S.C.

24 666(a)(8)(B)(iii)) is amended—

25 (i) by striking ‘‘(5),’’; and
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1 (ii) by inserting ‘‘, and, at the option

2 of the State, the requirements of sub3 section (b)(5)’’ before the period.

4 (B) Section 466(b) (42 U.S.C. 666(b)) is

5 amended in the matter preceding paragraph

6 (1), by striking ‘‘subsection (a)(1)’’ and insert7 ing ‘‘subsection (a)(1)(A)’’.

8 (C) Section 466(b)(5) (42 U.S.C.

9 666(b)(5)) is amended by striking all that fol10 lows ‘‘administered by’’ and inserting ‘‘the

11 State through the State disbursement unit es12 tablished pursuant to section 454B, in accord13 ance with the requirements of section 454B.’’.

14 (D) Section 466(b)(6)(A) (42 U.S.C.

15 666(b)(6)(A)) is amended—

16 (i) in clause (i), by striking ‘‘to the

17 appropriate agency’’ and all that follows

18 and inserting ‘‘to the State disbursement

19 unit within 2 business days after the date

20 the amount would (but for this subsection)

21 have been paid or credited to the employee,

22 for distribution in accordance with this

23 part.’’;
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1 (ii) in clause (ii), by inserting ‘‘be in

2 a standard format prescribed by the Sec3 retary, and’’ after ‘‘shall’’; and

4 (iii) by adding at the end the follow5 ing:

6 ‘‘(iii) As used in this subparagraph, the term

7 ‘business day’ means a day on which State offices

8 are open for regular business.’’.

9 (E) Section 466(b)(6)(D) (42 U.S.C.

10 666(b)(6)(D)) is amended by striking ‘‘any em11 ployer’’ and all that follows and inserting the

12 following:

13 ‘‘any employer who—

14 ‘‘(i) discharges from employment, refuses

15 to employ, or takes disciplinary action against

16 any absent parent subject to wage withholding

17 required by this subsection because of the exist18 ence of such withholding and the obligations or

19 additional obligations which is imposes upon the

20 employer; or

21 ‘‘(ii) fails to withhold support from wages,

22 or to pay such amounts to the State disburse23 ment unit in accordance with this subsection.’’.

24 (F) Section 466(b) (42 U.S.C. 666(b)) is

25 amended by adding at the end the following:
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1 ‘‘(11) Procedures under which the agency ad2 ministering the State plan approved under this part

3 may execute a withholding order through electronic

4 means and without advance notice to the obligor.’’.

5 (b) CONFORMING AMENDMENT.—Section 466(c) (42

6 U.S.C. 666(c)) is repealed.

7 SEC. 14715. LOCATOR INFORMATION FROM INTERSTATE

8 NETWORKS.

9 Section 466(a) (42 U.S.C. 666(a)) is amended by

10 adding at the end the following:

11 ‘‘(12) LOCATOR INFORMATION FROM INTER12 STATE NETWORKS.—Procedures to ensure that all

13 Federal and State agencies conducting activities

14 under this part have access to any system used by

15 the State to locate an individual for purposes relat16 ing to motor vehicles or law enforcement.’’.

17 SEC. 14716. EXPANSION OF THE FEDERAL PARENT LOCA18 TOR SERVICE.

19 (a) EXPANDED AUTHORITY TO LOCATE INDIVID20 UALS AND ASSETS.—Section 453 (42 U.S.C. 653) is

21 amended—

22 (1) in subsection (a), by striking all that follows

23 ‘‘subsection (c))’’ and inserting ‘‘, for the purpose of

24 establishing parentage, establishing, setting the
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1 amount of, modifying, or enforcing child support ob2 ligations—

3 ‘‘(1) information on, or facilitating the discov4 ery of, the location of any individual—

5 ‘‘(A) who is under an obligation to pay

6 child support;

7 ‘‘(B) against whom such an obligation is

8 sought; or

9 ‘‘(C) to whom such an obligation is owed,

10 including the individual’s social security number (or

11 numbers), most recent address, and the name, ad12 dress, and employer identification number of the in13 dividual’s employer; and

14 ‘‘(2) information on the individual’s wages (or

15 other income) from, and benefits of, employment (in16 cluding rights to or enrollment in group health care

17 coverage).’’; and

18 (2) in subsection (b), in the matter preceding

19 paragraph (1), by striking ‘‘social security’’ and all

20 that follows through ‘‘absent parent’’ and inserting

21 ‘‘information described in subsection (a)’’.

22 (b) REIMBURSEMENT FOR INFORMATION FROM FED23 ERAL AGENCIES.—Section 453(e)(2) (42 U.S.C.

24 653(e)(2)) is amended in the 4th sentence by inserting

25 ‘‘in an amount which the Secretary determines to be rea-
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1 sonable payment for the information exchange (which

2 amount shall not include payment for the costs of obtain3 ing, compiling, or maintaining the information)’’ before

4 the period.

5 (c) REIMBURSEMENT FOR REPORTS BY STATE

6 AGENCIES.—Section 453 (42 U.S.C. 653) is amended by

7 adding at the end the following:

8 ‘‘(g) The Secretary may reimburse Federal and State

9 agencies for the costs incurred by such entities in furnish10 ing information requested by the Secretary under this sec11 tion in an amount which the Secretary determines to be

12 reasonable payment for the information exchange (which

13 amount shall not include payment for the costs of obtain14 ing, compiling, or maintaining the information).’’.

15 (d) TECHNICAL AMENDMENTS.—

16 (1) Sections 452(a)(9), 453(a), 453(b), 463(a),

17 463(e), and 463(f) (42 U.S.C. 652(a)(9), 653(a),

18 653(b), 663(a), 663(e), and 663(f)) are each amend19 ed by inserting ‘‘Federal’’ before ‘‘Parent’’ each

20 place such term appears.

21 (2) Section 453 (42 U.S.C. 653) is amended in

22 the heading by adding ‘‘FEDERAL’’ before ‘‘PAR23 ENT’’.
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1 (e) NEW COMPONENTS.—Section 453 (42 U.S.C.

2 653), as amended by subsection (c) of this section, is

3 amended by adding at the end the following:

4 ‘‘(h) FEDERAL CASE REGISTRY OF CHILD SUPPORT

5 ORDERS.—

6 ‘‘(1) IN GENERAL.—Not later than October 1,

7 1998, in order to assist States in administering pro8 grams under State plans approved under this part

9 and programs funded under part A, and for the

10 other purposes specified in this section, the Sec11 retary shall establish and maintain in the Federal

12 Parent Locator Service an automated registry

13 (which shall be known as the ‘Federal Case Registry

14 of Child Support Orders’), which shall contain ab15 stracts of support orders and other information de16 scribed in paragraph (2) with respect to each case

17 in each State case registry maintained pursuant to

18 section 454A(e), as furnished (and regularly up19 dated), pursuant to section 454A(f), by State agen20 cies administering programs under this part.

21 ‘‘(2) CASE INFORMATION.—The information re22 ferred to in paragraph (1) with respect to a case

23 shall be such information as the Secretary may

24 specify in regulations (including the names, social

25 security numbers or other uniform identification
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1 numbers, and State case identification numbers) to

2 identify the individuals who owe or are owed support

3 (or with respect to or on behalf of whom support ob4 ligations are sought to be established), and the State

5 or States which have the case.

6 ‘‘(i) NATIONAL DIRECTORY OF NEW HIRES.—

7 ‘‘(1) IN GENERAL.—In order to assist States in

8 administering programs under State plans approved

9 under this part and programs funded under part A,

10 and for the other purposes specified in this section,

11 the Secretary shall, not later than October 1, 1996,

12 establish and maintain in the Federal Parent Loca13 tor Service an automated directory to be known as

14 the National Directory of New Hires, which shall

15 contain the information supplied pursuant to section

16 453A(f)(2).

17 ‘‘(2) ADMINISTRATION OF FEDERAL TAX

18 LAWS.—The Secretary of the Treasury shall have

19 access to the information in the Federal Directory of

20 New Hires for purposes of administering section 32

21 of the Internal Revenue Code of 1986, or the ad22 vance payment of the earned income tax credit

23 under section 3507 of such Code, and verifying a

24 claim with respect to employment in a tax return.
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1 ‘‘(j) INFORMATION COMPARISONS AND OTHER DIS2 CLOSURES.—

3 ‘‘(1) VERIFICATION BY SOCIAL SECURITY AD4 MINISTRATION.—

5 ‘‘(A) The Secretary shall transmit informa6 tion on individuals and employers maintained

7 under this section to the Social Security Admin8 istration to the extent necessary for verification

9 in accordance with subparagraph (B).

10 ‘‘(B) The Social Security Administration

11 shall verify the accuracy of, correct, or supply

12 to the extent possible, and report to the Sec13 retary, the following information supplied by

14 the Secretary pursuant to subparagraph (A):

15 ‘‘(i) The name, social security num16 ber, and birth date of each such individual.

17 ‘‘(ii) The employer identification num18 ber of each such employer.

19 ‘‘(2) INFORMATION COMPARISONS.—For the

20 purpose of locating individuals in a paternity estab21 lishment case or a case involving the establishment,

22 modification, or enforcement of a support order, the

23 Secretary shall—

24 ‘‘(A) compare information in the National

25 Directory of New Hires against information in
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1 the support order abstracts in the Federal Case

2 Registry of Child Support Orders not less often

3 than every 2 business days; and

4 ‘‘(B) within 2 such days after such a com5 parison reveals a match with respect to an indi6 vidual, report the information to the State

7 agency responsible for the case.

8 ‘‘(3) INFORMATION COMPARISONS AND DISCLO9 SURES OF INFORMATION IN ALL REGISTRIES FOR

10 TITLE IV PROGRAM PURPOSES.—To the extent and

11 with the frequency that the Secretary determines to

12 be effective in assisting States to carry out their re13 sponsibilities under programs operated under this

14 part and programs funded under part A, the Sec15 retary shall—

16 ‘‘(A) compare the information in each com17 ponent of the Federal Parent Locator Service

18 maintained under this section against the infor19 mation in each other such component (other

20 than the comparison required by paragraph

21 (2)), and report instances in which such a com22 parison reveals a match with respect to an indi23 vidual to State agencies operating such pro24 grams; and
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1 ‘‘(B) disclose information in such registries

2 to such State agencies.

3 ‘‘(4) PROVISION OF NEW HIRE INFORMATION

4 TO THE SOCIAL SECURITY ADMINISTRATION.—The

5 National Directory of New Hires shall provide the

6 Commissioner of Social Security with all information

7 in the National Directory, which shall be used to de8 termine the accuracy of payments under the supple9 mental security income program under title XVI and

10 in connection with benefits under title II.

11 ‘‘(5) RESEARCH.—The Secretary may provide

12 access to information reported by employers pursu13 ant to section 453A(b) for research purposes found

14 by the Secretary to be likely to contribute to achiev15 ing the purposes of part A or this part, but without

16 personal identifiers.

17 ‘‘(k) FEES.—

18 ‘‘(1) FOR SSA VERIFICATION.—The Secretary

19 shall reimburse the Commissioner of Social Security,

20 at a rate negotiated between the Secretary and the

21 Commissioner, for the costs incurred by the Com22 missioner in performing the verification services de23 scribed in subsection (j).

24 ‘‘(2) FOR INFORMATION FROM STATE DIREC25 TORIES OF NEW HIRES.—The Secretary shall reim-
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1 burse costs incurred by State directories of new

2 hires in furnishing information as required by sub3 section (j)(3), at rates which the Secretary deter4 mines to be reasonable (which rates shall not include

5 payment for the costs of obtaining, compiling, or

6 maintaining such information).

7 ‘‘(3) FOR INFORMATION FURNISHED TO STATE

8 AND FEDERAL AGENCIES.—A State or Federal agen9 cy that receives information from the Secretary pur10 suant to this section shall reimburse the Secretary

11 for costs incurred by the Secretary in furnishing the

12 information, at rates which the Secretary determines

13 to be reasonable (which rates shall include payment

14 for the costs of obtaining, verifying, maintaining,

15 and comparing the information).

16 ‘‘(l) RESTRICTION ON DISCLOSURE AND USE.—In17 formation in the Federal Parent Locator Service, and in18 formation resulting from comparisons using such informa19 tion, shall not be used or disclosed except as expressly pro20 vided in this section, subject to section 6103 of the Inter21 nal Revenue Code of 1986.

22 ‘‘(m) INFORMATION INTEGRITY AND SECURITY.—

23 The Secretary shall establish and implement safeguards

24 with respect to the entities established under this section

25 designed to—
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1 ‘‘(1) ensure the accuracy and completeness of

2 information in the Federal Parent Locator Service;

3 and

4 ‘‘(2) restrict access to confidential information

5 in the Federal Parent Locator Service to authorized

6 persons, and restrict use of such information to au7 thorized purposes.’’.

8 (f) CONFORMING AMENDMENTS.—

9 (1) TO PART D OF TITLE IV OF THE SOCIAL SE10 CURITY ACT.—Section 454(8)(B) (42 U.S.C.

11 654(8)(B)) is amended to read as follows:

12 ‘‘(B) the Federal Parent Locator Service

13 established under section 453;’’.

14 (2) TO FEDERAL UNEMPLOYMENT TAX ACT.—

15 Section 3304(a)(16) of the Internal Revenue Code of

16 1986 is amended—

17 (A) by striking ‘‘Secretary of Health, Edu18 cation, and Welfare’’ each place such term ap19 pears and inserting ‘‘Secretary of Health and

20 Human Services’’;

21 (B) in subparagraph (B), by striking

22 ‘‘such information’’ and all that follows and in23 serting ‘‘information furnished under subpara24 graph (A) or (B) is used only for the purposes

25 authorized under such subparagraph;’’;
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1 (C) by striking ‘‘and’’ at the end of sub2 paragraph (A);

3 (D) by redesignating subparagraph (B) as

4 subparagraph (C); and

5 (E) by inserting after subparagraph (A)

6 the following new subparagraph:

7 ‘‘(B) wage and unemployment compensa8 tion information contained in the records of

9 such agency shall be furnished to the Secretary

10 of Health and Human Services (in accordance

11 with regulations promulgated by such Sec12 retary) as necessary for the purposes of the Na13 tional Directory of New Hires established under

14 section 453(i) of the Social Security Act, and’’.

15 (3) TO STATE GRANT PROGRAM UNDER TITLE

16 III OF THE SOCIAL SECURITY ACT.—Section 303(a)

17 (42 U.S.C. 503(a)) is amended—

18 (A) by striking ‘‘and’’ at the end of para19 graph (8);

20 (B) by striking ‘‘and’’ at the end of para21 graph (9);

22 (C) by striking the period at the end of

23 paragraph (10) and inserting ‘‘; and’’; and

24 (D) by adding after paragraph (10) the

25 following:
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1 ‘‘(11) The making of quarterly electronic re2 ports, at such dates, in such format, and containing

3 such information, as required by the Secretary of

4 Health and Human Services under section 453(i)(3),

5 and compliance with such provisions as such Sec6 retary may find necessary to ensure the correctness

7 and verification of such reports.’’.

8 SEC. 14717. COLLECTION AND USE OF SOCIAL SECURITY

9 NUMBERS FOR USE IN CHILD SUPPORT EN10 FORCEMENT.

11 (a) STATE LAW REQUIREMENT.—Section 466(a) (42

12 U.S.C. 666(a)), as amended by section 14715 of this Act,

13 is amended by adding at the end the following:

14 ‘‘(13) RECORDING OF SOCIAL SECURITY NUM15 BERS IN CERTAIN FAMILY MATTERS.—Procedures

16 requiring that the social security number of—

17 ‘‘(A) any applicant for a professional li18 cense, commercial driver’s license, occupational

19 license, or marriage license be recorded on the

20 application;

21 ‘‘(B) any individual who is subject to a di22 vorce decree, support order, or paternity deter23 mination or acknowledgment be placed in the

24 records relating to the matter; and
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1 ‘‘(C) any individual who has died be placed

2 in the records relating to the death and be re3 corded on the death certificate.’’.

4 (b) CONFORMING AMENDMENTS.—Section

5 205(c)(2)(C) (42 U.S.C. 405(c)(2)(C)), as amended by

6 section 321(a)(9) of the Social Security Independence and

7 Program Improvements Act of 1994, is amended—

8 (1) in clause (i), by striking ‘‘may require’’ and

9 inserting ‘‘shall require’’;

10 (2) in clause (ii), by inserting after the 1st sen11 tence the following: ‘‘In the administration of any

12 law involving the issuance of a marriage certificate

13 or license, each State shall require each party named

14 in the certificate or license to furnish to the State

15 (or political subdivision thereof) or any State agency

16 having administrative responsibility for the law in17 volved, the social security number of the party.’’;

18 (3) in clause (vi), by striking ‘‘may’’ and insert19 ing ‘‘shall’’; and

20 (4) by adding at the end the following:

21 ‘‘(x) An agency of a State (or a politi22 cal subdivision thereof) charged with the

23 administration of any law concerning the

24 issuance or renewal of a license, certificate,

25 permit, or other authorization to engage in
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1 a profession, an occupation, or a commer2 cial activity shall require all applicants for

3 issuance or renewal of the license, certifi4 cate, permit, or other authorization to pro5 vide the applicant’s social security number

6 to the agency for the purpose of admin7 istering such laws, and for the purpose of

8 responding to requests for information

9 from an agency operating pursuant to part

10 D of title IV.

11 ‘‘(xi) All divorce decrees, support or12 ders, and paternity determinations issued,

13 and all paternity acknowledgments made,

14 in each State shall include the social secu15 rity number of each party to the decree,

16 order, determination, or acknowledgment

17 in the records relating to the matter.’’.

18 CHAPTER 3—STREAMLINING AND

19 UNIFORMITY OF PROCEDURES

20 SEC. 14721. ADOPTION OF UNIFORM STATE LAWS.

21 Section 466 (42 U.S.C. 666) is amended by adding

22 at the end the following:

23 ‘‘(f) UNIFORM INTERSTATE FAMILY SUPPORT

24 ACT.—
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1 ‘‘(1) ENACTMENT AND USE.—In order to sat2 isfy section 454(20)(A) on or after January 1, 1997,

3 each State must have in effect the Uniform Inter4 state Family Support Act, as approved by the Na5 tional Conference of Commissioners on Uniform

6 State Laws in August 1992 (with the modifications

7 and additions specified in this subsection), and the

8 procedures required to implement such Act.

9 ‘‘(2) EXPANDED APPLICATION.—The State law

10 enacted pursuant to paragraph (1) shall be applied

11 to any case involving an order which is established

12 or modified in a State and which is sought to be

13 modified or enforced in another State.

14 ‘‘(3) JURISDICTION TO MODIFY ORDERS.—The

15 State law enacted pursuant to paragraph (1) of this

16 subsection shall contain the following provision in

17 lieu of section 611(a)(1) of the Uniform Interstate

18 Family Support Act:

19 ‘‘ ‘(1) the following requirements are met:

20 ‘‘ ‘(i) the child, the individual obligee, and

21 the obligor—

22 ‘‘ ‘(I) do not reside in the issuing

23 State; and
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1 ‘‘ ‘(II) either reside in this State or

2 are subject to the jurisdiction of this State

3 pursuant to section 201; and

4 ‘‘ ‘(ii) (in any case where another State is

5 exercising or seeks to exercise jurisdiction to

6 modify the order) the conditions of section 204

7 are met to the same extent as required for pro8 ceedings to establish orders; or’.

9 ‘‘(4) SERVICE OF PROCESS.—The State law en10 acted pursuant to paragraph (1) shall provide that,

11 in any proceeding subject to the law, process may be

12 served (and proved) upon persons in the State by

13 any means acceptable in any State which is the initi14 ating or responding State in the proceeding.’’.

15 SEC. 14722. IMPROVEMENTS TO FULL FAITH AND CREDIT

16 FOR CHILD SUPPORT ORDERS.

17 Section 1738B of title 28, United States Code, is

18 amended—

19 (1) in subsection (a)(2), by striking ‘‘subsection

20 (e)’’ and inserting ‘‘subsections (e), (f), and (i)’’;

21 (2) in subsection (b), by inserting after the 2nd

22 undesignated paragraph the following:

23 ‘‘ ‘child’s home State’ means the State in which

24 a child lived with a parent or a person acting as par25 ent for at least six consecutive months immediately
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1 preceding the time of filing of a petition or com2 parable pleading for support and, if a child is less

3 than six months old, the State in which the child

4 lived from birth with any of them. A period of tem5 porary absence of any of them is counted as part of

6 the six-month period.’’;

7 (3) in subsection (c), by inserting ‘‘by a court

8 of a State’’ before ‘‘is made’’;

9 (4) in subsection (c)(1), by inserting ‘‘and sub10 sections (e), (f), and (g)’’ after ‘‘located’’;

11 (5) in subsection (d)—

12 (A) by inserting ‘‘individual’’ before ‘‘con13 testant’’; and

14 (B) by striking ‘‘subsection (e)’’ and in15 serting ‘‘subsections (e) and (f)’’;

16 (6) in subsection (e), by striking ‘‘make a modi17 fication of a child support order with respect to a

18 child that is made’’ and inserting ‘‘modify a child

19 support order issued’’;

20 (7) in subsection (e)(1), by inserting ‘‘pursuant

21 to subsection (i)’’ before the semicolon;

22 (8) in subsection (e)(2)—

23 (A) by inserting ‘‘individual’’ before ‘‘con24 testant’’ each place such term appears; and
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1 (B) by striking ‘‘to that court’s making the

2 modification and assuming’’ and inserting ‘‘with

3 the State of continuing, exclusive jurisdiction

4 for a court of another State to modify the order

5 and assume’’;

6 (9) by redesignating subsections (f) and (g) as

7 subsections (g) and (h), respectively;

8 (10) by inserting after subsection (e) the follow9 ing:

10 ‘‘(f) RECOGNITION OF CHILD SUPPORT ORDERS.—

11 If one or more child support orders have been issued in

12 this or another State with regard to an obligor and a child,

13 a court shall apply the following rules in determining

14 which order to recognize for purposes of continuing, exclu15 sive jurisdiction and enforcement:

16 ‘‘(1) If only one court has issued a child sup17 port order, the order of that court must be recog18 nized.

19 ‘‘(2) If two or more courts have issued child

20 support orders for the same obligor and child, and

21 only one of the courts would have continuing, exclu22 sive jurisdiction under this section, the order of that

23 court must be recognized.

24 ‘‘(3) If two or more courts have issued child

25 support orders for the same obligor and child, and
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1 only one of the courts would have continuing, exclu2 sive jurisdiction under this section, an order issued

3 by a court in the current home State of the child

4 must be recognized, but if an order has not been is5 sued in the current home State of the child, the

6 order most recently issued must be recognized.

7 ‘‘(4) If two or more courts have issued child

8 support orders for the same obligor and child, and

9 none of the courts would have continuing, exclusive

10 jurisdiction under this section, a court may issue a

11 child support order, which must be recognized.

12 ‘‘(5) The court that has issued an order recog13 nized under this subsection is the court having con14 tinuing, exclusive jurisdiction.’’;

15 (11) in subsection (g) (as so redesignated)—

16 (A) by striking ‘‘PRIOR’’ and inserting

17 ‘‘MODIFIED’’; and

18 (B) by striking ‘‘subsection (e)’’ and in19 serting ‘‘subsections (e) and (f)’’;

20 (12) in subsection (h) (as so redesignated)—

21 (A) in paragraph (2), by inserting ‘‘includ22 ing the duration of current payments and other

23 obligations of support’’ before the comma; and

24 (B) in paragraph (3), by inserting ‘‘arrears

25 under’’ after ‘‘enforce’’; and
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1 (13) by adding at the end the following:

2 ‘‘(i) REGISTRATION FOR MODIFICATION.—If there is

3 no individual contestant or child residing in the issuing

4 State, the party or support enforcement agency seeking

5 to modify, or to modify and enforce, a child support order

6 issued in another State shall register that order in a State

7 with jurisdiction over the nonmovant for the purpose of

8 modification.’’.

9 SEC. 14723. ADMINISTRATIVE ENFORCEMENT IN INTER10 STATE CASES.

11 Section 466(a) (42 U.S.C. 666(a)), as amended by

12 sections 14715 and 14717(a) of this Act, is amended by

13 adding at the end the following:

14 ‘‘(14) ADMINISTRATIVE ENFORCEMENT IN

15 INTERSTATE CASES.—Procedures under which—

16 ‘‘(A)(i) the State shall respond within 5

17 business days to a request made by another

18 State to enforce a support order; and

19 ‘‘(ii) the term ‘business day’ means a day

20 on which State offices are open for regular

21 business;

22 ‘‘(B) the State may, by electronic or other

23 means, transmit to another State a request for

24 assistance in a case involving the enforcement

25 of a support order, which request—
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1 ‘‘(i) shall include such information as

2 will enable the State to which the request

3 is transmitted to compare the information

4 about the case to the information in the

5 data bases of the State; and

6 ‘‘(ii) shall constitute a certification by

7 the requesting State—

8 ‘‘(I) of the amount of support

9 under the order the payment of which

10 is in arrears; and

11 ‘‘(II) that the requesting State

12 has complied with all procedural due

13 process requirements applicable to the

14 case;

15 ‘‘(C) if the State provides assistance to an16 other State pursuant to this paragraph with re17 spect to a case, neither State shall consider the

18 case to be transferred to the caseload of such

19 other State; and

20 ‘‘(D) the State shall maintain records of—

21 ‘‘(i) the number of such requests for

22 assistance received by the State;

23 ‘‘(ii) the number of cases for which

24 the State collected support in response to

25 such a request; and
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1 ‘‘(iii) the amount of such collected

2 support.’’.

3 SEC. 14724. USE OF FORMS IN INTERSTATE ENFORCEMENT.

4 (a) PROMULGATION.—Section 452(a) (42 U.S.C.

5 652(a)) is amended—

6 (1) by striking ‘‘and’’ at the end of parargraph

7 (9);

8 (2) by striking the period at the end of para9 graph (10) and inserting ‘‘; and’’; and

10 (3) by adding at the end the following:

11 ‘‘(11) not later than June 30, 1996, promulgate

12 forms to be used by States in interstate cases for—

13 ‘‘(A) collection of child support through in14 come withholding;

15 ‘‘(B) imposition of liens; and

16 ‘‘(C) administrative subpoenas.’’.

17 (b) USE BY STATES.—Section 454(9) (42 U.S.C.

18 654(9)) is amended—

19 (1) by striking ‘‘and’’ at the end of subpara20 graph (C);

21 (2) by inserting ‘‘and’’ at the end of subpara22 graph (D); and

23 (3) by adding at the end the following:

24 ‘‘(E) no later than October 1, 1996, in

25 using the forms promulgated pursuant to sec-
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1 tion 452(a)(11) for income withholding, imposi2 tion of liens, and issuance of administrative

3 subpoenas in interstate child support cases;’’.

4 SEC. 14725. STATE LAWS PROVIDING EXPEDITED PROCE5 DURES.

6 (a) STATE LAW REQUIREMENTS.—Section 466 (42

7 U.S.C. 666), as amended by section 14714 of this Act,

8 is amended—

9 (1) in subsection (a)(2), by strking the 1st sen10 tence and inserting the following: ‘‘Expedited admin11 istrative and judicial procedures (including the pro12 cedures specified in subsection (c)) for establishing

13 paternity and for establishing, modifying, and en14 forcing support obligations.’’; and

15 (2) by inserting after subsection (b) the follow16 ing:

17 ‘‘(c) EXPEDITED PROCEDURES.—The procedures

18 specified in this subsection are the following:

19 ‘‘(1) ADMINISTRATIVE ACTION BY STATE AGEN20 CY.—Procedures which give the State agency the au21 thority to take the following actions relating to es22 tablishment or enforcement of support orders, with23 out the necessity of obtaining an order from any

24 other judicial or administrative tribunal (but subject

25 to due process safeguards, including (as appropriate)
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1 requirements for notice, opportunity to contest the

2 action, and opportunity for an appeal on the record

3 to an independent administrative or judicial tribu4 nal), and to recognize and enforce the authority of

5 State agencies of other States) to take the following

6 actions:

7 ‘‘(A) GENETIC TESTING.—To order genetic

8 testing for the purpose of paternity establish9 ment as provided in section 466(a)(5).

10 ‘‘(B) DEFAULT ORDERS.—To enter a de11 fault order, upon a showing of service of proc12 ess and any additional showing required by

13 State law—

14 ‘‘(i) establishing paternity, in the case

15 of a putative father who refuses to submit

16 to genetic testing; and

17 ‘‘(ii) establishing or modifying a sup18 port obligation, in the case of a parent (or

19 other obligor or obligee) who fails to re20 spond to notice to appear at a proceeding

21 for such purpose.

22 ‘‘(C) SUBPOENAS.—To subpoena any fi23 nancial or other information needed to estab24 lish, modify, or enforce a support order, and to
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1 impose penalties for failure to respond to such

2 a subpoena.

3 ‘‘(D) ACCESS TO PERSONAL AND FINAN4 CIAL INFORMATION.—To obtain access, subject

5 to safeguards on privacy and information secu6 rity, to the records of all other State and local

7 government agencies (including law enforcement

8 and corrections records), including automated

9 access to records maintained in automated data

10 bases.

11 ‘‘(E) CHANGE IN PAYEE.—In cases where

12 support is subject to an assignment in order to

13 comply with a requirement imposed pursuant to

14 part A or section 1912, or to a requirement to

15 pay through the State disbursement unit estab16 lished pursuant to section 454B, upon provid17 ing notice to obligor and obligee, to direct the

18 obligor or other payor to change the payee to

19 the appropriate government entity.

20 ‘‘(F) INCOME WITHHOLDING.—To order

21 income withholding in accordance with sub22 sections (a)(1) and (b) of section 466.

23 ‘‘(G) SECURING ASSETS.—In cases in

24 which there is a support arrearage, to secure

25 assets to satisfy the arrearage by—
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1 ‘‘(i) intercepting or seizing periodic or

2 lump sum payments from—

3 ‘‘(I) a State or local agency (in4 cluding unemployment compensation,

5 workers’ compensation, and other ben6 efits); and

7 ‘‘(II) judgments, settlements, and

8 lotteries;

9 ‘‘(ii) attaching and seizing assets of

10 the obligor held in financial institutions;

11 and

12 ‘‘(iii) attaching public and private re13 tirement funds.

14 ‘‘(H) INCREASE MONTHLY PAYMENTS.—

15 For the purpose of securing overdue support, to

16 increase the amount of monthly support pay17 ments to include amounts for arrearages (sub18 ject to such conditions or limitations as the

19 State may provide).

20 ‘‘(2) SUBSTANTIVE AND PROCEDURAL RULES.—

21 The expedited procedures required under subsection

22 (a)(2) shall include the following rules and author23 ity, applicable with respect to all proceedings to es24 tablish paternity or to establish, modify, or enforce

25 support orders:
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1 ‘‘(A) LOCATOR INFORMATION; PRESUMP2 TIONS CONCERNING NOTICE.—Procedures

3 under which—

4 ‘‘(i) each party to any paternity or

5 child support proceeding is required (sub6 ject to privacy safeguards) to file with the

7 tribunal and the State case registry upon

8 entry of an order, and to update as appro9 priate, information on location and identity

10 of the party (including social security num11 ber, residential and mailing addresses, tele12 phone number, driver’s license number,

13 and name, address, and name and tele14 phone number of employer); and

15 ‘‘(ii) in any subsequent child support

16 enforcement action between the parties,

17 upon sufficient showing that diligent effort

18 has been made to ascertain the location of

19 such a party, the tribunal may deem State

20 due process requirements for notice and

21 service of process to be met with respect to

22 the party, upon delivery of written notice

23 to the most recent residential or employer

24 address filed with the tribunal pursuant to

25 clause (i).
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1 ‘‘(B) STATEWIDE JURISDICTION.—Proce2 dures under which—

3 ‘‘(i) the State agency and any admin4 istrative or judicial tribunal with authority

5 to hear child support and paternity cases

6 exerts statewide jurisdiction over the par7 ties; and

8 ‘‘(ii) in a State in which orders are is9 sued by courts or administrative tribunals,

10 a case may be transferred between admin11 istrative areas in the State without need

12 for any additional filing by the petitioner,

13 or service of process upon the respondent,

14 to retain jurisdiction over the parties.’’.

15 (b) AUTOMATION OF STATE AGENCY FUNCTIONS.—

16 Section 454A, as added by section 745(a)(2) of this Act

17 and as amended by sections 14711 and 14712(c) of this

18 Act, is amended by adding at the end the following:

19 ‘‘(h) EXPEDITED ADMINISTRATIVE PROCEDURES.—

20 The automated system required by this section shall be

21 used, to the maximum extent feasible, to implement the

22 expedited administrative procedures required by section

23 466(c).’’.
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1 CHAPTER 4—PATERNITY ESTABLISHMENT

2 SEC. 14731. STATE LAWS CONCERNING PATERNITY ESTAB3 LISHMENT.

4 (a) STATE LAWS REQUIRED.—Section 466(a)(5) (42

5 U.S.C. 666(a)(5)) is amended to read as follows:

6 ‘‘(5) PROCEDURES CONCERNING PATERNITY ES7 TABLISHMENT.—

8 ‘‘(A) ESTABLISHMENT PROCESS AVAIL9 ABLE FROM BIRTH UNTIL AGE 18.—

10 ‘‘(i) Procedures which permit the es11 tablishment of the paternity of a child at

12 any time before the child attains 18 years

13 of age.

14 ‘‘(ii) As of August 16, 1984, clause (i)

15 shall also apply to a child for whom pater16 nity has not been established or for whom

17 a paternity action was brought but dis18 missed because a statute of limitations of

19 less than 18 years was then in effect in the

20 State.

21 ‘‘(B) PROCEDURES CONCERNING GENETIC

22 TESTING.—

23 ‘‘(i) GENETIC TESTING REQUIRED IN

24 CERTAIN CONTESTED CASES.—Procedures

25 under which the State is required, in a
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1 contested paternity case, to require the

2 child and all other parties (other than indi3 viduals found under section 454(28) to

4 have good cause for refusing to cooperate)

5 to submit to genetic tests upon the request

6 of any such party if the request is sup7 ported by a sworn statement by the

8 party—

9 ‘‘(I) alleging paternity, and set10 ting forth facts establishing a reason11 able possibility of the requisite sexual

12 contact between the parties; or

13 ‘‘(II) denying paternity, and set14 ting forth facts establishing a reason15 able possibility of the nonexistence of

16 sexual contact between the parties.

17 ‘‘(ii) OTHER REQUIREMENTS.—Proce18 dures which require the State agency, in

19 any case in which the agency orders ge20 netic testing—

21 ‘‘(I) to pay costs of such tests,

22 subject to recoupment (where the

23 State so elects) from the alleged fa24 ther if paternity is established; and
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1 ‘‘(II) to obtain additional testing

2 in any case where an original test re3 sult is contested, upon request and

4 advance payment by the contestant.

5 ‘‘(C) VOLUNTARY PATERNITY ACKNOWL6 EDGMENT.—

7 ‘‘(i) SIMPLE CIVIL PROCESS.—Proce8 dures for a simple civil process for volun9 tarily acknowledging paternity under which

10 the State must provide that, before a

11 mother and a putative father can sign an

12 acknowledgment of paternity, the mother

13 and the putative father must be given no14 tice, orally, in writing, and in a language

15 that each can understand, of the alter16 natives to, the legal consequences of, and

17 the rights (including, if 1 parent is a

18 minor, any rights afforded due to minority

19 status) and responsibilities that arise from,

20 signing the acknowledgment.

21 ‘‘(ii) HOSPITAL-BASED PROGRAM.—

22 Such procedures must include a hospital23 based program for the voluntary acknowl24 edgment of paternity focusing on the pe-
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1 riod immediately before or after the birth

2 of a child.

3 ‘‘(iii) PATERNITY ESTABLISHMENT

4 SERVICES.—

5 ‘‘(I) STATE-OFFERED SERV6 ICES.—Such procedures must require

7 the State agency responsible for main8 taining birth records to offer vol9 untary paternity establishment serv10 ices.

11 ‘‘(II) REGULATIONS.—

12 ‘‘(aa) SERVICES OFFERED

13 BY HOSPITALS AND BIRTH

14 RECORD AGENCIES.—The Sec15 retary shall prescribe regulations

16 governing voluntary paternity es17 tablishment services offered by

18 hospitals and birth record agen19 cies.

20 ‘‘(bb) SERVICES OFFERED

21 BY OTHER ENTITIES.—The Sec22 retary shall prescribe regulations

23 specifying the types of other enti24 ties that may offer voluntary pa25 ternity establishment services,
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1 and governing the provision of

2 such services, which shall include

3 a requirement that such an entity

4 must use the same notice provi5 sions used by, use the same ma6 terials used by, provide the per7 sonnel providing such services

8 with the same training provided

9 by, and evaluate the provision of

10 such services in the same manner

11 as the provision of such services

12 is evaluated by, voluntary pater13 nity establishment programs of

14 hospitals and birth record agen15 cies.

16 ‘‘(iv) USE OF FEDERAL PATERNITY

17 ACKNOWLEDGMENT AFFIDAVIT.—Such

18 procedures must require the State and

19 those required to establish paternity to use

20 only the affidavit developed under section

21 452(a)(7) for the voluntary acknowledg22 ment of paternity, and to give full faith

23 and credit to such an affidavit signed in

24 any other State.
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1 ‘‘(D) STATUS OF SIGNED PATERNITY AC2 KNOWLEDGMENT.—

3 ‘‘(i) LEGAL FINDING OF PATER4 NITY.—Procedures under which a signed

5 acknowledgment of paternity is considered

6 a legal finding of paternity, subject to the

7 right of any signatory to rescind the ac8 knowledgment within 60 days.

9 ‘‘(ii) CONTEST.—Procedures under

10 which, after the 60-day period referred to

11 in clause (i), a signed acknowledgment of

12 paternity may be challenged in court only

13 on the basis of fraud, duress, or material

14 mistake of fact, with the burden of proof

15 upon the challenger, and under which the

16 legal responsibilities (including child sup17 port obligations) of any signatory arising

18 from the acknowledgment may not be sus19 pended during the challenge, except for

20 good cause shown.

21 ‘‘(iii) RESCISSION.—Procedures under

22 which, after the 60-day period referred to

23 in clause (i), a minor who has signed an

24 acknowledgment of paternity other than in

25 the presence of a parent or court-appointed
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1 guardian ad litem may rescind the ac2 knowledgment in a judicial or administra3 tive proceeding, until the earlier of—

4 ‘‘(I) attaining the age of major5 ity; or

6 ‘‘(II) the date of the first judicial

7 or administrative proceeding brought

8 (after the signing) to establish a child

9 support obligation, visitation rights, or

10 custody rights with respect to the

11 child whose paternity is the subject of

12 the acknowledgment, and at which the

13 minor is represented by a parent or

14 guardian ad litem, or an attorney.

15 ‘‘(E) BAR ON ACKNOWLEDGMENT RATIFI16 CATION PROCEEDINGS.—Procedures under

17 which judicial or administrative proceedings are

18 not required or permitted to ratify an unchal19 lenged acknowledgment of paternity.

20 ‘‘(F) ADMISSIBILITY OF GENETIC TESTING

21 RESULTS.—Procedures—

22 ‘‘(i) requiring the admission into evi23 dence, for purposes of establishing pater24 nity, of the results of any genetic test that

25 is—
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1 ‘‘(I) of a type generally acknowl2 edged as reliable by accreditation bod3 ies designated by the Secretary; and

4 ‘‘(II) performed by a laboratory

5 approved by such an accreditation

6 body;

7 ‘‘(ii) requiring an objection to genetic

8 testing results to be made in writing not

9 later than a specified number of days be10 fore any hearing at which the results may

11 be introduced into evidence (or, at State

12 option, not later than a specified number

13 of days after receipt of the results); and

14 ‘‘(iii) making the test results admissi15 ble as evidence of paternity without the

16 need for foundation testimony or other

17 proof of authenticity or accuracy, unless

18 objection is made.

19 ‘‘(G) PRESUMPTION OF PATERNITY IN

20 CERTAIN CASES.—Procedures which create a re21 buttable or, at the option of the State, conclu22 sive presumption of paternity upon genetic test23 ing results indicating a threshold probability

24 that the alleged father is the father of the child.
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1 ‘‘(H) DEFAULT ORDERS.—Procedures re2 quiring a default order to be entered in a pater3 nity case upon a showing of service of process

4 on the defendant and any additional showing

5 required by State law.

6 ‘‘(I) NO RIGHT TO JURY TRIAL.—Proce7 dures providing that the parties to an action to

8 establish paternity are not entitled to a trial by

9 jury.

10 ‘‘(J) TEMPORARY SUPPORT ORDER BASED

11 ON PROBABLE PATERNITY IN CONTESTED

12 CASES.—Procedures which require that a tem13 porary order be issued, upon motion by a party,

14 requiring the provision of child support pending

15 an administrative or judicial determination of

16 parentage, where there is clear and convincing

17 evidence of paternity (on the basis of genetic

18 tests or other evidence).

19 ‘‘(K) PROOF OF CERTAIN SUPPORT AND

20 PATERNITY ESTABLISHMENT COSTS.—Proce21 dures under which bills for pregnancy, child22 birth, and genetic testing are admissible as evi23 dence without requiring third-party foundation

24 testimony, and shall constitute prima facie evi-
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1 dence of amounts incurred for such services or

2 for testing on behalf of the child.

3 ‘‘(L) STANDING OF PUTATIVE FATHERS.—

4 Procedures ensuring that the putative father

5 has a reasonable opportunity to initiate a pater6 nity action.

7 ‘‘(M) FILING OF ACKNOWLEDGMENTS AND

8 ADJUDICATIONS IN STATE REGISTRY OF BIRTH

9 RECORDS.—Procedures under which voluntary

10 acknowledgments and adjudications of paternity

11 by judicial or administrative processes are filed

12 with the State registry of birth records for com13 parison with information in the State case reg14 istry.’’.

15 (b) NATIONAL PATERNITY ACKNOWLEDGMENT AFFI16 DAVIT.—Section 452(a)(7) (42 U.S.C. 652(a)(7)) is

17 amended by inserting ‘‘, and develop an affidavit to be

18 used for the voluntary acknowledgment of paternity which

19 shall include the social security number of each parent’’

20 before the semicolon.

21 (c) TECHNICAL AMENDMENT.—Section 468 (42

22 U.S.C. 668) is amended by striking ‘‘a simple civil process

23 for voluntarily acknowledging paternity and’’.
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1 SEC. 14732. OUTREACH FOR VOLUNTARY PATERNITY ES2 TABLISHMENT.

3 Section 454(23) (42 U.S.C. 654(23)) is amended by

4 inserting ‘‘and will publicize the availability and encourage

5 the use of procedures for voluntary establishment of pater6 nity and child support by means the State deems appro7 priate’’ before the semicolon.

8 SEC. 14733. COOPERATION BY APPLICANTS FOR AND RE9 CIPIENTS OF TEMPORARY FAMILY ASSIST10 ANCE.

11 Section 454 (42 U.S.C. 654), as amended by sections

12 14703(a), 14712(a), and 14713(a) of this Act, is amend13 ed—

14 (1) by striking ‘‘and’’ at the end of paragraph

15 (26);

16 (2) by striking the period at the end of para17 graph (27) and inserting ‘‘; and’’; and

18 (3) by inserting after paragraph (27) the fol19 lowing:

20 ‘‘(28) provide that the State agency responsible

21 for administering the State plan—

22 ‘‘(A) shall require each individual who has

23 applied for or is receiving assistance under the

24 State program funded under part A to cooper25 ate with the State in establishing the paternity

26 of, and in establishing, modifying, or enforcing
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1 a support order for, any child of the individual

2 by providing the State agency with the name of,

3 and such other information as the State agency

4 may require with respect to, the father of the

5 child, subject to such good cause and other ex6 ceptions as the State may establish; and

7 ‘‘(B) may require the individual and the

8 child to submit to genetic tests.’’.

9 CHAPTER 5—PROGRAM ADMINISTRATION

10 AND FUNDING

11 SEC. 14741. FEDERAL MATCHING PAYMENTS.

12 (a) INCREASED BASE MATCHING RATE.—Section

13 455(a)(2) (42 U.S.C. 655(a)(2)) is amended to read as

14 follows:

15 ‘‘(2) The percent specified in this paragraph for any

16 quarter is 66 percent.’’.

17 (b) MAINTENANCE OF EFFORT.—Section 455 (42

18 U.S.C. 655) is amended—

19 (1) in subsection (a)(1), in the matter preced20 ing subparagraph (A), by striking ‘‘From’’ and in21 serting ‘‘Subject to subsection (c), from’’; and

22 (2) by inserting after subsection (b) the follow23 ing:

24 ‘‘(c) MAINTENANCE OF EFFORT.—Notwithstanding

25 subsection (a), the total expenditures under the State plan
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1 approved under this part for fiscal year 1997 and each

2 succeeding fiscal year, reduced by the percentage specified

3 in paragraph (2) for the fiscal year shall not be less than

4 such total expenditures for fiscal year 1996, reduced by

5 66 percent.’’.

6 SEC. 14742. PERFORMANCE-BASED INCENTIVES AND PEN7 ALTIES.

8 (a) INCENTIVE ADJUSTMENTS TO FEDERAL MATCH9 ING RATE.—Section 458 (42 U.S.C. 658) is amended to

10 read as follows:

11 ‘‘SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.

12 ‘‘(a) INCENTIVE ADJUSTMENTS.—

13 ‘‘(1) IN GENERAL.—Beginning with fiscal year

14 1999, the Secretary shall increase the percent speci15 fied in section 455(a)(2) that applies to payments to

16 a State under section 455(a)(1)(A) for each quarter

17 in a fiscal year by a factor reflecting the sum of the

18 applicable incentive adjustments (if any) determined

19 in accordance with regulations under this section

20 with respect to the paternity establishment percent21 age of the State for the immediately preceding fiscal

22 year and with respect to overall performance of the

23 State in child support enforcement during such pre24 ceding fiscal year.

25 ‘‘(2) STANDARDS.—
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1 ‘‘(A) IN GENERAL.—The Secretary shall

2 specify in regulations—

3 ‘‘(i) the levels of accomplishment, and

4 rates of improvement as alternatives to

5 such levels, which a State must attain to

6 qualify for an incentive adjustment under

7 this section; and

8 ‘‘(ii) the amounts of incentive adjust9 ment that shall be awarded to a State that

10 achieves specified accomplishment or im11 provement levels, which amounts shall be

12 graduated, ranging up to—

13 ‘‘(I) 12 percentage points, in con14 nection with paternity establishment;

15 and

16 ‘‘(II) 12 percentage points, in

17 connection with overall performance in

18 child support enforcement.

19 ‘‘(B) LIMITATION.—In setting performance

20 standards pursuant to subparagraph (A)(i) and

21 adjustment amounts pursuant to subparagraph

22 (A)(ii), the Secretary shall ensure that the ag23 gregate number of percentage point increases as

24 incentive adjustments to all States do not ex25 ceed such aggregate increases as assumed by
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1 the Secretary in estimates of the cost of this

2 section as of June 1994, unless the aggregate

3 performance of all States exceeds the projected

4 aggregate performance of all States in such cost

5 estimates.

6 ‘‘(3) DETERMINATION OF INCENTIVE ADJUST7 MENT.—The Secretary shall determine the amount

8 (if any) of the incentive adjustment due each State

9 on the basis of the data submitted by the State pur10 suant to section 454(15)(B) concerning the levels of

11 accomplishment (and rates of improvement) with re12 spect to performance indicators specified by the Sec13 retary pursuant to this section.

14 ‘‘(4) RECYCLING OF INCENTIVE ADJUST15 MENT.—A State to which funds are paid by the

16 Federal Government as a result of an incentive ad17 justment under this section shall expend the funds

18 in the State program under this part within 2 years

19 after the date of the payment.

20 ‘‘(b) DEFINITIONS.—As used in this section:

21 ‘‘(1) PATERNITY ESTABLISHMENT PERCENT22 AGE.—The term ‘paternity establishment percent23 age’ means, with respect to a State and a fiscal

24 year—
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1 ‘‘(A) the total number of children in the

2 State who were born out of wedlock, who have

3 not attained 1 year of age and for whom pater4 nity is established or acknowledged during the

5 fiscal year; divided by

6 ‘‘(B) the total number of children born out

7 of wedlock in the State during the fiscal year.

8 ‘‘(2) OVERALL PERFORMANCE IN CHILD SUP9 PORT ENFORCEMENT.—The term ‘overall perform10 ance in child support enforcement’ means a measure

11 or measures of the effectiveness of the State agency

12 in a fiscal year which takes into account factors in13 cluding—

14 ‘‘(A) the percentage of cases requiring a

15 support order in which such an order was es16 tablished;

17 ‘‘(B) the percentage of cases in which child

18 support is being paid;

19 ‘‘(C) the ratio of child support collected to

20 child support due; and

21 ‘‘(D) the cost-effectiveness of the State

22 program, as determined in accordance with

23 standards established by the Secretary in regu24 lations (after consultation with the States).’’.
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1 (b) CONFORMING AMENDMENTS.—Section 454(22)

2 (42 U.S.C. 654(22)) is amended—

3 (1) by striking ‘‘incentive payments’’ the 1st

4 place such term appears and inserting ‘‘incentive ad5 justments’’; and

6 (2) by striking ‘‘any such incentive payments

7 made to the State for such period’’ and inserting

8 ‘‘any increases in Federal payments to the State re9 sulting from such incentive adjustments’’.

10 (c) CALCULATION OF IV–D PATERNITY ESTABLISH11 MENT PERCENTAGE.—

12 (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is

13 amended—

14 (A) in the matter preceding subparagraph

15 (A) by inserting ‘‘its overall performance in

16 child support enforcement is satisfactory (as de17 fined in section 458(b) and regulations of the

18 Secretary), and’’ after ‘‘1994,’’; and

19 (B) in each of subparagraphs (A) and (B),

20 by striking ‘‘75’’ and inserting ‘‘90’’.

21 (2) Section 452(g)(2)(A) (42 U.S.C.

22 652(g)(2)(A)) is amended in the matter preceding

23 clause (i)—
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1 (A) by striking ‘‘paternity establishment

2 percentage’’ and inserting ‘‘IV–D paternity es3 tablishment percentage’’; and

4 (B) by striking ‘‘(or all States, as the case

5 may be)’’.

6 (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is

7 amended—

8 (A) by striking subparagraph (A) and re9 designating subparagraphs (B) and (C) as sub10 paragraphs (A) and (B), respectively;

11 (B) in subparagraph (A) (as so redesig12 nated), by striking ‘‘the percentage of children

13 born out-of-wedlock in a State’’ and inserting

14 ‘‘the percentage of children in a State who are

15 born out of wedlock or for whom support has

16 not been established’’; and

17 (C) in subparagraph (B) (as so redesig18 nated)—

19 (i) by inserting ‘‘and overall perform20 ance in child support enforcement’’ after

21 ‘‘paternity establishment percentages’’; and

22 (ii) by inserting ‘‘and securing sup23 port’’ before the period.

24 (d) EFFECTIVE DATES.—
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1 (1) INCENTIVE ADJUSTMENTS.—(A) The

2 amendments made by subsections (a) and (b) shall

3 become effective on October 1, 1997, except to the

4 extent provided in subparagraph (B).

5 (B) Section 458 of the Social Security Act, as

6 in effect prior to the enactment of this section, shall

7 be effective for purposes of incentive payments to

8 States for fiscal years before fiscal year 1999.

9 (2) PENALTY REDUCTIONS.—The amendments

10 made by subsection (c) shall become effective with

11 respect to calendar quarters beginning on and after

12 the date of the enactment of this Act.

13 SEC. 14743. FEDERAL AND STATE REVIEWS AND AUDITS.

14 (a) STATE AGENCY ACTIVITIES.—Section 454 (42

15 U.S.C. 654) is amended—

16 (1) in paragraph (14), by striking ‘‘(14)’’ and

17 inserting ‘‘(14)(A)’’;

18 (2) by redesignating paragraph (15) as sub19 paragraph (B) of paragraph (14); and

20 (3) by inserting after paragraph (14) the fol21 lowing:

22 ‘‘(15) provide for—

23 ‘‘(A) a process for annual reviews of and

24 reports to the Secretary on the State program

25 operated under the State plan approved under
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1 this part, which shall include such information

2 as may be necessary to measure State compli3 ance with Federal requirements for expedited

4 procedures and timely case processing, using

5 such standards and procedures as are required

6 by the Secretary, under which the State agency

7 will determine the extent to which the program

8 is operated in compliance with this part; and

9 ‘‘(B) a process of extracting from the auto10 mated data processing system required by para11 graph (16) and transmitting to the Secretary

12 data and calculations concerning the levels of

13 accomplishment (and rates of improvement)

14 with respect to applicable performance indica15 tors (including IV–D paternity establishment

16 percentages and overall performance in child

17 support enforcement) to the extent necessary

18 for purposes of sections 452(g) and 458.’’.

19 (b) FEDERAL ACTIVITIES.—Section 452(a)(4) (42

20 U.S.C. 652(a)(4)) is amended to read as follows:

21 ‘‘(4)(A) review data and calculations transmit22 ted by State agencies pursuant to section

23 454(15)(B) on State program accomplishments with

24 respect to performance indicators for purposes of

25 subsection (g) of this section and section 458;
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1 ‘‘(B) review annual reports submitted pursuant

2 to section 454(15)(A) and, as appropriate, provide

3 to the State comments, recommendations for addi4 tional or alternative corrective actions, and technical

5 assistance; and

6 ‘‘(C) conduct audits, in accordance with the

7 government auditing standards of the Comptroller

8 General of the United States—

9 ‘‘(i) at least once every 3 years (or more

10 frequently, in the case of a State which fails to

11 meet the requirements of this part, concerning

12 performance standards and reliability of pro13 gram data) to assess the completeness, reliabil14 ity, and security of the data, and the accuracy

15 of the reporting systems, used in calculating

16 performance indicators under subsection (g) of

17 this section and section 458;

18 ‘‘(ii) of the adequacy of financial manage19 ment of the State program operated under the

20 State plan approved under this part, including

21 assessments of—

22 ‘‘(I) whether Federal and other funds

23 made available to carry out the State pro24 gram are being appropriately expended,
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1 and are properly and fully accounted for;

2 and

3 ‘‘(II) whether collections and disburse4 ments of support payments are carried out

5 correctly and are fully accounted for; and

6 ‘‘(iii) for such other purposes as the Sec7 retary may find necessary;’’.

8 (c) EFFECTIVE DATE.—The amendments made by

9 this section shall be effective with respect to calendar

10 quarters beginning 12 months or more after the date of

11 the enactment of this section.

12 SEC. 14744. REQUIRED REPORTING PROCEDURES.

13 (a) ESTABLISHMENT.—Section 452(a)(5) (42 U.S.C.

14 652(a)(5)) is amended by inserting ‘‘, and establish proce15 dures to be followed by States for collecting and reporting

16 information required to be provided under this part, and

17 establish uniform definitions (including those necessary to

18 enable the measurement of State compliance with the re19 quirements of this part relating to expedited processes and

20 timely case processing) to be applied in following such pro21 cedures’’ before the semicolon.

22 (b) STATE PLAN REQUIREMENT.—Section 454 (42

23 U.S.C. 654), as amended by sections 14703(a), 14712(a),

24 14713(a), and 14733 of this Act, is amended—
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1 (1) by striking ‘‘and’’ at the end of paragraph

2 (27);

3 (2) by striking the period at the end of para4 graph (28) and inserting ‘‘; and’’; and

5 (3) by adding after paragraph (28) the follow6 ing:

7 ‘‘(29) provide that the State shall use the defi8 nitions established under section 452(a)(5) in col9 lecting and reporting information as required under

10 this part.’’.

11 SEC. 14745. AUTOMATED DATA PROCESSING REQUIRE12 MENTS.

13 (a) REVISED REQUIREMENTS.—

14 (1) Section 454(16) (42 U.S.C. 654(16)) is

15 amended—

16 (A) by striking ‘‘, at the option of the

17 State,’’;

18 (B) by inserting ‘‘and operation by the

19 State agency’’ after ‘‘for the establishment’’;

20 (C) by inserting ‘‘meeting the requirements

21 of section 454A’’ after ‘‘information retrieval

22 system’’;

23 (D) by striking ‘‘in the State and localities

24 thereof, so as (A)’’ and inserting ‘‘so as’’;

25 (E) by striking ‘‘(i)’’; and
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1 (F) by striking ‘‘(including’’ and all that

2 follows and inserting a semicolon.

3 (2) Part D of title IV (42 U.S.C. 651–669) is

4 amended by inserting after section 454 the follow5 ing:

6 ‘‘SEC. 454A. AUTOMATED DATA PROCESSING.

7 ‘‘(a) IN GENERAL.—In order for a State to meet the

8 requirements of this section, the State agency administer9 ing the State program under this part shall have in oper10 ation a single statewide automated data processing and

11 information retrieval system which has the capability to

12 perform the tasks specified in this section with the fre13 quency and in the manner required by or under this part.

14 ‘‘(b) PROGRAM MANAGEMENT.—The automated sys15 tem required by this section shall perform such functions

16 as the Secretary may specify relating to management of

17 the State program under this part, including—

18 ‘‘(1) controlling and accounting for use of Fed19 eral, State, and local funds in carrying out the pro20 gram; and

21 ‘‘(2) maintaining the data necessary to meet

22 Federal reporting requirements under this part on a

23 timely basis.

24 ‘‘(c) CALCULATION OF PERFORMANCE INDICA25 TORS.—In order to enable the Secretary to determine the
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1 incentive and penalty adjustments required by sections

2 452(g) and 458, the State agency shall—

3 ‘‘(1) use the automated system—

4 ‘‘(A) to maintain the requisite data on

5 State performance with respect to paternity es6 tablishment and child support enforcement in

7 the State; and

8 ‘‘(B) to calculate the IV–D paternity es9 tablishment percentage and overall performance

10 in child support enforcement for the State for

11 each fiscal year; and

12 ‘‘(2) have in place systems controls to ensure

13 the completeness, and reliability of, and ready access

14 to, the data described in paragraph (1)(A), and the

15 accuracy of the calculations described in paragraph

16 (1)(B).

17 ‘‘(d) INFORMATION INTEGRITY AND SECURITY.—The

18 State agency shall have in effect safeguards on the integ19 rity, accuracy, and completeness of, access to, and use of

20 data in the automated system required by this section,

21 which shall include the following (in addition to such other

22 safeguards as the Secretary may specify in regulations):

23 ‘‘(1) POLICIES RESTRICTING ACCESS.—Written

24 policies concerning access to data by State agency
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1 personnel, and sharing of data with other persons,

2 which—

3 ‘‘(A) permit access to and use of data only

4 to the extent necessary to carry out the State

5 program under this part; and

6 ‘‘(B) specify the data which may be used

7 for particular program purposes, and the per8 sonnel permitted access to such data.

9 ‘‘(2) SYSTEMS CONTROLS.—Systems controls

10 (such as passwords or blocking of fields) to ensure

11 strict adherence to the policies described in para12 graph (1).

13 ‘‘(3) MONITORING OF ACCESS.—Routine mon14 itoring of access to and use of the automated sys15 tem, through methods such as audit trails and feed16 back mechanisms, to guard against and promptly

17 identify unauthorized access or use.

18 ‘‘(4) TRAINING AND INFORMATION.—Proce19 dures to ensure that all personnel (including State

20 and local agency staff and contractors) who may

21 have access to or be required to use confidential pro22 gram data are informed of applicable requirements

23 and penalties (including those in section 6103 of the

24 Internal Revenue Code of 1986), and are adequately

25 trained in security procedures.
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1 ‘‘(5) PENALTIES.—Administrative penalties (up

2 to and including dismissal from employment) for un3 authorized access to, or disclosure or use of, con4 fidential data.’’.

5 (3) REGULATIONS.—The Secretary of Health

6 and Human Services shall prescribe final regulations

7 for implementation of section 454A of the Social Se8 curity Act not later than 2 years after the date of

9 the enactment of this Act.

10 (4) IMPLEMENTATION TIMETABLE.—Section

11 454(24) (42 U.S.C. 654(24)), as amended by sec12 tions 14703(a)(2) and 14712(a)(1) of this Act, is

13 amended to read as follows:

14 ‘‘(24) provide that the State will have in effect

15 an automated data processing and information re16 trieval system—

17 ‘‘(A) by October 1, 1995, which meets all

18 requirements of this part which were enacted on

19 or before the date of enactment of the Family

20 Support Act of 1988; and

21 ‘‘(B) by October 1, 1999, which meets all

22 requirements of this part enacted on or before

23 the date of the enactment of the Personal Re24 sponsibility Act of 1995, except that such dead25 line shall be extended by 1 day for each day (if
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1 any) by which the Secretary fails to meet the

2 deadline imposed by section 14745(a)(3) of the

3 Personal Responsibility Act of 1995.’’.

4 (b) SPECIAL FEDERAL MATCHING RATE FOR DE5 VELOPMENT COSTS OF AUTOMATED SYSTEMS.—

6 (1) IN GENERAL.—Section 455(a) (42 U.S.C.

7 655(a)) is amended—

8 (A) in paragraph (1)(B)—

9 (i) by striking ‘‘90 percent’’ and in10 serting ‘‘the percent specified in paragraph

11 (3)’’;

12 (ii) by striking ‘‘so much of’’; and

13 (iii) by striking ‘‘which the Secretary’’

14 and all that follows and inserting ‘‘, and’’;

15 and

16 (B) by adding at the end the following:

17 ‘‘(3)(A) The Secretary shall pay to each State, for

18 each quarter in fiscal year 1996, 90 percent of so much

19 of the State expenditures described in paragraph (1)(B)

20 as the Secretary finds are for a system meeting the re21 quirements specified in section 454(16).

22 ‘‘(B)(i) The Secretary shall pay to each State, for

23 each quarter in fiscal years 1997 through 2001, the per24 centage specified in clause (ii) of so much of the State

25 expenditures described in paragraph (1)(B) as the Sec-
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1 retary finds are for a system meeting the requirements

2 of sections 454(16) and 454A.

3 ‘‘(ii) The percentage specified in this clause is the

4 greater of—

5 ‘‘(I) 80 percent; or

6 ‘‘(II) the percentage otherwise applicable to

7 Federal payments to the State under subparagraph

8 (A) (as adjusted pursuant to section 458).’’.

9 (2) TEMPORARY LIMITATION ON PAYMENTS

10 UNDER SPECIAL FEDERAL MATCHING RATE.—

11 (A) IN GENERAL.—The Secretary of

12 Health and Human Services may not pay more

13 than $260,000,000 in the aggregate under sec14 tion 455(a)(3) of the Social Security Act for fis15 cal years 1996, 1997, 1998, 1999, and 2000.

16 (B) ALLOCATION OF LIMITATION AMONG

17 STATES.—The total amount payable to a State

18 under section 455(a)(3) of such Act for fiscal

19 years 1996, 1997, 1998, 1999, and 2000 shall

20 not exceed the limitation determined for the

21 State by the Secretary of Health and Human

22 Services in regulations.

23 (C) ALLOCATION FORMULA.—The regula24 tions referred to in subparagraph (B) shall pre25 scribe a formula for allocating the amount spec-
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1 ified in subparagraph (A) among States with

2 plans approved under part D of title IV of the

3 Social Security Act, which shall take into ac4 count—

5 (i) the relative size of State caseloads

6 under such part; and

7 (ii) the level of automation needed to

8 meet the automated data processing re9 quirements of such part.

10 (c) CONFORMING AMENDMENT.—Section 123(c) of

11 the Family Support Act of 1988 (102 Stat. 2352; Public

12 Law 100–485) is repealed.

13 SEC. 14746. TECHNICAL ASSISTANCE.

14 (a) FOR TRAINING OF FEDERAL AND STATE STAFF,

15 RESEARCH AND DEMONSTRATION PROGRAMS, AND SPE16 CIAL PROJECTS OF REGIONAL OR NATIONAL SIGNIFI17 CANCE.—Section 452 (42 U.S.C. 652) is amended by add18 ing at the end the following:

19 ‘‘(j) Out of any money in the Treasury of the United

20 States not otherwise appropriated, there is hereby appro21 priated to the Secretary for each fiscal year an amount

22 equal to 1 percent of the total amount paid to the Federal

23 Government pursuant to section 457(a) during the imme24 diately preceding fiscal year (as determined on the basis

25 of the most recent reliable data available to the Secretary
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1 as of the end of the 3rd calendar quarter following the

2 end of such preceding fiscal year), to cover costs incurred

3 by the Secretary for—

4 ‘‘(1) information dissemination and technical

5 assistance to States, training of State and Federal

6 staff, staffing studies, and related activities needed

7 to improve programs under this part (including tech8 nical assistance concerning State automated systems

9 required by this part); and

10 ‘‘(2) research, demonstration, and special

11 projects of regional or national significance relating

12 to the operation of State programs under this

13 part.’’.

14 (b) OPERATION OF FEDERAL PARENT LOCATOR

15 SERVICE.—Section 453 (42 U.S.C. 653), as amended by

16 section 14716(e) of this Act, is amended by adding at the

17 end the following:

18 ‘‘(n) Out of any money in the Treasury of the United

19 States not otherwise appropriated, there is hereby appro20 priated to the Secretary for each fiscal year an amount

21 equal to 2 percent of the total amount paid to the Federal

22 Government pursuant to section 457(a) during the imme23 diately preceding fiscal year (as determined on the basis

24 of the most recent reliable data available to the Secretary

25 as of the end of the 3rd calendar quarter following the
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1 end of such preceding fiscal year), to cover costs incurred

2 by the Secretary for operation of the Federal Parent Loca3 tor Service under this section, to the extent such costs are

4 not recovered through user fees.’’.

5 SEC. 14747. REPORTS AND DATA COLLECTION BY THE SEC6 RETARY.

7 (a) ANNUAL REPORT TO CONGRESS.—

8 (1) Section 452(a)(10)(A) (42 U.S.C.

9 652(a)(10)(A)) is amended—

10 (A) by striking ‘‘this part;’’ and inserting

11 ‘‘this part, including—’’; and

12 (B) by adding at the end the following:

13 ‘‘(i) the total amount of child support

14 payments collected as a result of services

15 furnished during the fiscal year to individ16 uals receiving services under this part;

17 ‘‘(ii) the cost to the States and to the

18 Federal Government of so furnishing the

19 services; and

20 ‘‘(iii) the number of cases involving

21 families—

22 ‘‘(I) who became ineligible for as23 sistance under State programs funded

24 under part A during a month in the

25 fiscal year; and
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1 ‘‘(II) with respect to whom a

2 child support payment was received in

3 the month;’’.

4 (2) Section 452(a)(10)(C) (42 U.S.C.

5 652(a)(10)(C)) is amended—

6 (A) in the matter preceding clause (i)—

7 (i) by striking ‘‘with the data required

8 under each clause being separately stated

9 for cases’’ and inserting ‘‘separately stated

10 for (1) cases’’;

11 (ii) by striking ‘‘cases where the child

12 was formerly receiving’’ and inserting ‘‘or

13 formerly received’’;

14 (iii) by inserting ‘‘or 1912’’ after

15 ‘‘471(a)(17)’’; and

16 (iv) by inserting ‘‘(2)’’ before ‘‘all

17 other’’;

18 (B) in each of clauses (i) and (ii), by strik19 ing ‘‘, and the total amount of such obliga20 tions’’;

21 (C) in clause (iii), by striking ‘‘described

22 in’’ and all that follows and inserting ‘‘in which

23 support was collected during the fiscal year;’’;

24 (D) by striking clause (iv);
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1 (E) by redesignating clause (v) as clause

2 (vii), and inserting after clause (iii) the follow3 ing:

4 ‘‘(iv) the total amount of support col5 lected during such fiscal year and distrib6 uted as current support;

7 ‘‘(v) the total amount of support col8 lected during such fiscal year and distrib9 uted as arrearages;

10 ‘‘(vi) the total amount of support due

11 and unpaid for all fiscal years; and’’.

12 (3) Section 452(a)(10)(G) (42 U.S.C.

13 652(a)(10)(G)) is amended by striking ‘‘on the use

14 of Federal courts and’’.

15 (4) Section 452(a)(10) (42 U.S.C. 652(a)(10))

16 is amended by striking all that follows subparagraph

17 (I).

18 (b) EFFECTIVE DATE.—The amendments made by

19 subsection (a) shall be effective with respect to fiscal year

20 1996 and succeeding fiscal years.
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1 CHAPTER 6—ESTABLISHMENT AND

2 MODIFICATION OF SUPPORT ORDERS

3 SEC. 14751. SIMPLIFIED PROCESS FOR REVIEW AND AD4 JUSTMENT OF CHILD SUPPORT ORDERS.

5 Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amend6 ed to read as follows:

7 ‘‘(10) REVIEW AND ADJUSTMENT OF SUPPORT

8 ORDERS.—Procedures under which the State shall

9 review and adjust each support order being enforced

10 under this part. Such procedures shall provide the

11 following:

12 ‘‘(A) The State shall review and, as appro13 priate, adjust the support order every 3 years,

14 taking into account the best interests of the

15 child involved.

16 ‘‘(B)(i) The State may elect to review and,

17 if appropriate, adjust an order pursuant to sub18 paragraph (A) by—

19 ‘‘(I) reviewing and, if appropriate, ad20 justing the order in accordance with the

21 guidelines established pursuant to section

22 467(a) if the amount of the child support

23 award under the order differs from the

24 amount that would be awarded in accord25 ance with the guidelines; or
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1 ‘‘(II) applying a cost-of-living adjust2 ment to the order in accordance with a for3 mula developed by the State and permit ei4 ther party to contest the adjustment, with5 in 30 days after the date of the notice of

6 the adjustment, by making a request for

7 review and, if appropriate, adjustment of

8 the order in accordance with the child sup9 port guidelines established pursuant to sec10 tion 467(a).

11 ‘‘(ii) Any adjustment under clause (i) shall

12 be made without a requirement for proof or

13 showing of a change in circumstances.

14 ‘‘(C) The State may use automated meth15 ods (including automated comparisons with

16 wage or State income tax data) to identify or17 ders eligible for review, conduct the review,

18 identify orders eligible for adjustment, apply

19 the appropriate adjustment to the orders eligi20 ble for adjustment under the threshold estab21 lished by the State.

22 ‘‘(D) The State shall, at the request of ei23 ther parent subject to such an order or of any

24 State child support enforcement agency, review

25 and, if appropriate, adjust the order in accord-
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1 ance with the guidelines established pursuant to

2 section 467(a) based upon a substantial change

3 in the circumstances of either parent.

4 ‘‘(E) The State shall provide notice to the

5 parents subject to such an order informing

6 them of their right to request the State to re7 view and, if appropriate, adjust the order pur8 suant to subparagraph (D). The notice may be

9 included in the order.’’.

10 SEC. 14752. FURNISHING CONSUMER REPORTS FOR CER11 TAIN PURPOSES RELATING TO CHILD SUP12 PORT.

13 Section 604 of the Fair Credit Reporting Act (15

14 U.S.C. 1681b) is amended by adding at the end the follow15 ing:

16 ‘‘(4) In response to a request by the head of a

17 State or local child support enforcement agency (or

18 a State or local government official authorized by

19 the head of such an agency), if the person making

20 the request certifies to the consumer reporting agen21 cy that—

22 ‘‘(A) the consumer report is needed for the

23 purpose of establishing an individual’s capacity

24 to make child support payments or determining

25 the appropriate level of such payments;
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1 ‘‘(B) the person has provided at least 10

2 days prior notice to the consumer whose report

3 is requested, by certified or registered mail to

4 the last known address of the consumer, that

5 the report will be requested, and

6 ‘‘(C) the consumer report will be kept con7 fidential, will be used solely for a purpose de8 scribed in subparagraph (A), and will not be

9 used in connection with any other civil, admin10 istrative, or criminal proceeding, or for any

11 other purpose.

12 ‘‘(5) To an agency administering a State plan

13 under section 454 of the Social Security Act (42

14 U.S.C. 654) for use to set an initial or modified

15 child support award.’’.

16 CHAPTER 7—ENFORCEMENT OF SUPPORT

17 ORDERS

18 SEC. 14761. FEDERAL INCOME TAX REFUND OFFSET.

19 (a) CHANGED ORDER OF REFUND DISTRIBUTION

20 UNDER INTERNAL REVENUE CODE.—

21 (1) Subsection (c) of section 6402 of the Inter22 nal Revenue Code of 1986 is amended by striking

23 the third sentence and inserting the following new

24 sentences: ‘‘A reduction under this subsection shall

25 be after any other reduction allowed by subsection
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1 (d) with respect to the Department of Health and

2 Human Services and the Department of Education

3 with respect to a student loan and before any other

4 reduction allowed by law and before such overpay5 ment is credited to the future liability for tax of

6 such person pursuant to subsection (b). A reduction

7 under this subsection shall be assigned to the State

8 with respect to past-due support owed to individuals

9 for periods such individuals were receiving assistance

10 under part A or B of title IV of the Social Security

11 Act only after satisfying all other past-due sup12 port.’’.

13 (2) Paragraph (2) of section 6402(d) of such

14 Code is amended—

15 (A) by striking ‘‘Any overpayment’’ and in16 serting ‘‘Except in the case of past-due legally

17 enforceable debts owed to the Department of

18 Health and Human Services or to the Depart19 ment of Education with respect to a student

20 loan, any overpayment’’; and

21 (B) by striking ‘‘with respect to past-due

22 support collected pursuant to an assignment

23 under section 402(a)(26) of the Social Security

24 Act’’.
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1 (b) ELIMINATION OF DISPARITIES IN TREATMENT

2 OF ASSIGNED AND NON-ASSIGNED ARREARAGES.—

3 (1) Section 464(a) (42 U.S.C. 664(a)) is

4 amended—

5 (A) by striking ‘‘(a)’’ and inserting ‘‘(a)

6 OFFSET AUTHORIZED.—’’;

7 (B) in paragraph (1)—

8 (i) in the 1st sentence, by striking

9 ‘‘which has been assigned to such State

10 pursuant to section 402(a)(26) or section

11 471(a)(17)’’; and

12 (ii) in the 2nd sentence, by striking

13 ‘‘in accordance with section 457(b)(4) or

14 (d)(3)’’ and inserting ‘‘as provided in para15 graph (2)’’;

16 (C) by striking paragraph (2) and insert17 ing the following:

18 ‘‘(2) The State agency shall distribute amounts paid

19 by the Secretary of the Treasury pursuant to paragraph

20 (1)—

21 ‘‘(A) in accordance with section 457(a), in the

22 case of past-due support assigned to a State pursu23 ant to requirements imposed pursuant to section

24 405(a)(8); and
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•HR 1923 IH

1 ‘‘(B) to or on behalf of the child to whom the

2 support was owed, in the case of past-due support

3 not so assigned.’’; and

4 (D) in paragraph (3)—

5 (i) by striking ‘‘or (2)’’ each place

6 such term appears; and

7 (ii) in subparagraph (B), by striking

8 ‘‘under paragraph (2)’’ and inserting ‘‘on

9 account of past-due support described in

10 paragraph (2)(B)’’.

11 (2) Section 464(b) (42 U.S.C. 664(b)) is

12 amended—

13 (A) by striking ‘‘(b)(1)’’ and inserting the

14 following:

15 ‘‘(b) REGULATIONS.—’’; and

16 (B) by striking paragraph (2).

17 (3) Section 464(c) (42 U.S.C. 664(c)) is

18 amended—

19 (A) by striking ‘‘(c)(1) Except as provided

20 in paragraph (2), as’’ and inserting the follow21 ing:

22 ‘‘(c) DEFINITION.—As’’; and

23 (B) by striking paragraphs (2) and (3).
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1 SEC. 14762. AUTHORITY TO COLLECT SUPPORT FROM FED2 ERAL EMPLOYEES.

3 (a) CONSOLIDATION AND STREAMLINING OF AU4 THORITIES.—Section 459 (42 U.S.C. 659) is amended to

5 read as follows:

6 ‘‘SEC. 459. CONSENT BY THE UNITED STATES TO INCOME

7 WITHHOLDING, GARNISHMENT, AND SIMILAR

8 PROCEEDINGS FOR ENFORCEMENT OF CHILD

9 SUPPORT AND ALIMONY OBLIGATIONS.

10 ‘‘(a) CONSENT TO SUPPORT ENFORCEMENT.—Not11 withstanding any other provision of law (including section

12 207 of this Act and section 5301 of title 38, United States

13 Code), effective January 1, 1975, moneys (the entitlement

14 to which is based upon remuneration for employment) due

15 from, or payable by, the United States or the District of

16 Columbia (including any agency, subdivision, or instru17 mentality thereof) to any individual, including members

18 of the Armed Forces of the United States, shall be subject,

19 in like manner and to the same extent as if the United

20 States or the District of Columbia were a private person,

21 to withholding in accordance with State law enacted pur22 suant to subsections (a)(1) and (b) of section 466 and reg23 ulations of the Secretary under such subsections, and to

24 any other legal process brought, by a State agency admin25 istering a program under a State plan approved under this
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1 part or by an individual obligee, to enforce the legal obliga2 tion of the individual to provide child support or alimony.

3 ‘‘(b) CONSENT TO REQUIREMENTS APPLICABLE TO

4 PRIVATE PERSON.—With respect to notice to withhold in5 come pursuant to subsection (a)(1) or (b) of section 466,

6 or any other order or process to enforce support obliga7 tions against an individual (if the order or process con8 tains or is accompanied by sufficient data to permit

9 prompt identification of the individual and the moneys in10 volved), each governmental entity specified in subsection

11 (a) shall be subject to the same requirements as would

12 apply if the entity were a private person, except as other13 wise provided in this section.

14 ‘‘(c) DESIGNATION OF AGENT; RESPONSE TO NOTICE

15 OR PROCESS—

16 ‘‘(1) DESIGNATION OF AGENT.—The head of

17 each agency subject to this section shall—

18 ‘‘(A) designate an agent or agents to re19 ceive orders and accept service of process in

20 matters relating to child support or alimony;

21 and

22 ‘‘(B) annually publish in the Federal Reg23 ister the designation of the agent or agents,

24 identified by title or position, mailing address,

25 and telephone number.
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1 ‘‘(2) RESPONSE TO NOTICE OR PROCESS.—If an

2 agent designated pursuant to paragraph (1) of this

3 subsection receives notice pursuant to State proce4 dures in effect pursuant to subsection (a)(1) or (b)

5 of section 466, or is effectively served with any

6 order, process, or interrogatory, with respect to an

7 individual’s child support or alimony payment obli8 gations, the agent shall—

9 ‘‘(A) as soon as possible (but not later

10 than 15 days) thereafter, send written notice of

11 the notice or service (together with a copy of

12 the notice or service) to the individual at the

13 duty station or last-known home address of the

14 individual;

15 ‘‘(B) within 30 days (or such longer period

16 as may be prescribed by applicable State law)

17 after receipt of a notice pursuant to such State

18 procedures, comply with all applicable provi19 sions of section 466; and

20 ‘‘(C) within 30 days (or such longer period

21 as may be prescribed by applicable State law)

22 after effective service of any other such order,

23 process, or interrogatory, respond to the order,

24 process, or interrogatory.
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1 ‘‘(d) PRIORITY OF CLAIMS.—If a governmental entity

2 specified in subsection (a) receives notice or is served with

3 process, as provided in this section, concerning amounts

4 owed by an individual to more than 1 person—

5 ‘‘(1) support collection under section 466(b)

6 must be given priority over any other process, as

7 provided in section 466(b)(7);

8 ‘‘(2) allocation of moneys due or payable to an

9 individual among claimants under section 466(b)

10 shall be governed by section 466(b) and the regula11 tions prescribed under such section; and

12 ‘‘(3) such moneys as remain after compliance

13 with paragraphs (1) and (2) shall be available to

14 satisfy any other such processes on a first-come,

15 first-served basis, with any such process being satis16 fied out of such moneys as remain after the satisfac17 tion of all such processes which have been previously

18 served.

19 ‘‘(e) NO REQUIREMENT TO VARY PAY CYCLES.—A

20 governmental entity that is affected by legal process

21 served for the enforcement of an individual’s child support

22 or alimony payment obligations shall not be required to

23 vary its normal pay and disbursement cycle in order to

24 comply with the legal process.

25 ‘‘(f) RELIEF FROM LIABILITY.—
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1 ‘‘(1) Neither the United States, nor the govern2 ment of the District of Columbia, nor any disbursing

3 officer shall be liable with respect to any payment

4 made from moneys due or payable from the United

5 States to any individual pursuant to legal process

6 regular on its face, if the payment is made in ac7 cordance with this section and the regulations issued

8 to carry out this section.

9 ‘‘(2) No Federal employee whose duties include

10 taking actions necessary to comply with the require11 ments of subsection (a) with regard to any individ12 ual shall be subject under any law to any discipli13 nary action or civil or criminal liability or penalty

14 for, or on account of, any disclosure of information

15 made by the employee in connection with the carry16 ing out of such actions.

17 ‘‘(g) REGULATIONS.—Authority to promulgate regu18 lations for the implementation of this section shall, insofar

19 as this section applies to moneys due from (or payable

20 by)—

21 ‘‘(1) the United States (other than the legisla22 tive or judicial branches of the Federal Government)

23 or the government of the District of Columbia, be

24 vested in the President (or the designee of the Presi25 dent);
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1 ‘‘(2) the legislative branch of the Federal Gov2 ernment, be vested jointly in the President pro tem3 pore of the Senate and the Speaker of the House of

4 Representatives (or their designees), and

5 ‘‘(3) the judicial branch of the Federal Govern6 ment, be vested in the Chief Justice of the United

7 States (or the designee of the Chief Justice).

8 ‘‘(h) MONEYS SUBJECT TO PROCESS.—

9 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

10 moneys paid or payable to an individual which are

11 considered to be based upon remuneration for em12 ployment, for purposes of this section—

13 ‘‘(A) consist of—

14 ‘‘(i) compensation paid or payable for

15 personal services of the individual, whether

16 the compensation is denominated as wages,

17 salary, commission, bonus, pay, allowances,

18 or otherwise (including severance pay, sick

19 pay, and incentive pay);

20 ‘‘(ii) periodic benefits (including a

21 periodic benefit as defined in section

22 228(h)(3)) or other payments—

23 ‘‘(I) under the insurance system

24 established by title II;
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1 ‘‘(II) under any other system or

2 fund established by the United States

3 which provides for the payment of

4 pensions, retirement or retired pay,

5 annuities, dependents’ or survivors’

6 benefits, or similar amounts payable

7 on account of personal services per8 formed by the individual or any other

9 individual;

10 ‘‘(III) as compensation for death

11 under any Federal program;

12 ‘‘(IV) under any Federal pro13 gram established to provide ‘black

14 lung’ benefits; or

15 ‘‘(V) by the Secretary of Veter16 ans Affairs as pension, or as com17 pensation for a service-connected dis18 ability or death (except any compensa19 tion paid by the Secretary to a mem20 ber of the Armed Forces who is in re21 ceipt of retired or retainer pay if the

22 member has waived a portion of the

23 retired pay of the member in order to

24 receive the compensation); and
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1 ‘‘(iii) worker’s compensation benefits

2 paid under Federal or State law but

3 ‘‘(B) do not include any payment—

4 ‘‘(i) by way of reimbursement or oth5 erwise, to defray expenses incurred by the

6 individual in carrying out duties associated

7 with the employment of the individual; or

8 ‘‘(ii) as allowances for members of the

9 uniformed services payable pursuant to

10 chapter 7 of title 37, United States Code,

11 as prescribed by the Secretaries concerned

12 (defined by section 101(5) of such title) as

13 necessary for the efficient performance of

14 duty.

15 ‘‘(2) CERTAIN AMOUNTS EXCLUDED.—In deter16 mining the amount of any moneys due from, or pay17 able by, the United States to any individual, there

18 shall be excluded amounts which—

19 ‘‘(A) are owed by the individual to the

20 United States;

21 ‘‘(B) are required by law to be, and are,

22 deducted from the remuneration or other pay23 ment involved, including Federal employment

24 taxes, and fines and forfeitures ordered by

25 court-martial;
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1 ‘‘(C) are properly withheld for Federal,

2 State, or local income tax purposes, if the with3 holding of the amounts is authorized or re4 quired by law and if amounts withheld are not

5 greater than would be the case if the individual

6 claimed all dependents to which he was entitled

7 (the withholding of additional amounts pursu8 ant to section 3402(i) of the Internal Revenue

9 Code of 1986 may be permitted only when the

10 individual presents evidence of a tax obligation

11 which supports the additional withholding);

12 ‘‘(D) are deducted as health insurance pre13 miums;

14 ‘‘(E) are deducted as normal retirement

15 contributions (not including amounts deducted

16 for supplementary coverage); or

17 ‘‘(F) are deducted as normal life insurance

18 premiums from salary or other remuneration

19 for employment (not including amounts de20 ducted for supplementary coverage).

21 ‘‘(i) DEFINITIONS.—As used in this section:

22 ‘‘(1) UNITED STATES.—The term ‘United

23 States’ includes any department, agency, or instru24 mentality of the legislative, judicial, or executive

25 branch of the Federal Government, the United
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1 States Postal Service, the Postal Rate Commission,

2 any Federal corporation created by an Act of Con3 gress that is wholly owned by the Federal Govern4 ment, and the governments of the territories and

5 possessions of the United States.

6 ‘‘(2) CHILD SUPPORT.—The term ‘child sup7 port’, when used in reference to the legal obligations

8 of an individual to provide such support, means peri9 odic payments of funds for the support and mainte10 nance of a child or children with respect to which

11 the individual has such an obligation, and (subject

12 to and in accordance with State law) includes pay13 ments to provide for health care, education, recre14 ation, clothing, or to meet other specific needs of

15 such a child or children, and includes attorney’s

16 fees, interest, and court costs, when and to the ex17 tent that the same are expressly made recoverable as

18 such pursuant to a decree, order, or judgment issued

19 in accordance with applicable State law by a court

20 of competent jurisdiction.

21 ‘‘(3) ALIMONY.—The term ‘alimony’, when used

22 in reference to the legal obligations of an individual

23 to provide the same, means periodic payments of

24 funds for the support and maintenance of the spouse

25 (or former spouse) of the individual, and (subject to
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1 and in accordance with State law) includes separate

2 maintenance, alimony pendente lite, maintenance,

3 and spousal support, and includes attorney’s fees,

4 interest, and court costs when and to the extent that

5 the same are expressly made recoverable as such

6 pursuant to a decree, order, or judgment issued in

7 accordance with applicable State law by a court of

8 competent jurisdiction. Such term does not include

9 any payment or transfer of property or its value by

10 an individual to the spouse or a former spouse of the

11 individual in compliance with any community prop12 erty settlement, equitable distribution of property, or

13 other division of property between spouses or former

14 spouses.

15 ‘‘(4) PRIVATE PERSON.—The term ‘private per16 son’ means a person who does not have sovereign or

17 other special immunity or privilege which causes the

18 person not to be subject to legal process.

19 ‘‘(5) LEGAL PROCESS.—The term ‘legal proc20 ess’ means any writ, order, summons, or other simi21 lar process in the nature of garnishment—

22 ‘‘(A) which is issued by—

23 ‘‘(i) a court of competent jurisdiction

24 in any State, territory, or possession of the

25 United States;
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1 ‘‘(ii) a court of competent jurisdiction

2 in any foreign country with which the

3 United States has entered into an agree4 ment which requires the United States to

5 honor the process; or

6 ‘‘(iii) an authorized official pursuant

7 to an order of such a court of competent

8 jurisdiction or pursuant to State or local

9 law; and

10 ‘‘(B) which is directed to, and the purpose

11 of which is to compel, a governmental entity

12 which holds moneys which are otherwise pay13 able to an individual to make a payment from

14 the moneys to another party in order to satisfy

15 a legal obligation of the individual to provide

16 child support or make alimony payments.’’.

17 (b) CONFORMING AMENDMENTS.—

18 (1) TO PART D OF TITLE IV.—Sections 461 and

19 462 (42 U.S.C. 661 and 662) are repealed.

20 (2) TO TITLE 5, UNITED STATES CODE.—Sec21 tion 5520a of title 5, United States Code, is amend22 ed, in subsections (h)(2) and (i), by striking ‘‘sec23 tions 459, 461, and 462 of the Social Security Act

24 (42 U.S.C. 659, 661, and 662)’’ and inserting ‘‘sec-
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1 tion 459 of the Social Security Act (42 U.S.C.

2 659)’’.

3 (c) MILITARY RETIRED AND RETAINER PAY.—

4 (1) DEFINITION OF COURT.—Section

5 1408(a)(1) of title 10, United States Code, is

6 amended—

7 (A) by striking ‘‘and’’ at the end of sub8 paragraph (B);

9 (B) by striking the period at the end of

10 subparagraph (C) and inserting ‘‘; and’’; and

11 (C) by adding after subparagraph (C) the

12 following:

13 ‘‘(D) any administrative or judicial tribu14 nal of a State competent to enter orders for

15 support or maintenance (including a State

16 agency administering a program under a State

17 plan approved under part D of title IV of the

18 Social Security Act), and, for purposes of this

19 subparagraph, the term ‘State’ includes the

20 District of Columbia, the Commonwealth of

21 Puerto Rico, the Virgin Islands, Guam, and

22 American Samoa.’’.

23 (2) DEFINITION OF COURT ORDER.—Section

24 1408(a)(2) of such title is amended by inserting ‘‘or

25 a court order for the payment of child support not
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1 included in or accompanied by such a decree or set2 tlement,’’ before ‘‘which—’’.

3 (3) PUBLIC PAYEE.—Section 1408(d) of such

4 title is amended—

5 (A) in the heading, by inserting ‘‘(OR FOR

6 BENEFIT OF)’’ before ‘‘SPOUSE OR’’; and

7 (B) in paragraph (1), in the first sentence,

8 by inserting ‘‘(or for the benefit of such spouse

9 or former spouse to a State disbursement unit

10 established pursuant to section 454B of the So11 cial Security Act or other public payee des12 ignated by a State, in accordance with part D

13 of title IV of the Social Security Act, as di14 rected by court order, or as otherwise directed

15 in accordance with such part D)’’ before ‘‘in an

16 amount sufficient’’.

17 (4) RELATIONSHIP TO PART D OF TITLE IV.—

18 Section 1408 of such title is amended by adding at

19 the end the following:

20 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—In any case

21 involving an order providing for payment of child support

22 (as defined in section 459(i)(2) of the Social Security Act)

23 by a member who has never been married to the other

24 parent of the child, the provisions of this section shall not
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1 apply, and the case shall be subject to the provisions of

2 section 459 of such Act.’’.

3 (d) EFFECTIVE DATE.—The amendments made by

4 this section shall become effective 6 months after the date

5 of the enactment of this Act.

6 SEC. 14763. ENFORCEMENT OF CHILD SUPPORT OBLIGA7 TIONS OF MEMBERS OF THE ARMED FORCES.

8 (a) AVAILABILITY OF LOCATOR INFORMATION.—

9 (1) MAINTENANCE OF ADDRESS INFORMA10 TION.—The Secretary of Defense shall establish a

11 centralized personnel locator service that includes

12 the address of each member of the Armed Forces

13 under the jurisdiction of the Secretary. Upon re14 quest of the Secretary of Transportation, addresses

15 for members of the Coast Guard shall be included in

16 the centralized personnel locator service.

17 (2) TYPE OF ADDRESS.—

18 (A) RESIDENTIAL ADDRESS.—Except as

19 provided in subparagraph (B), the address for

20 a member of the Armed Forces shown in the lo21 cator service shall be the residential address of

22 that member.

23 (B) DUTY ADDRESS.—The address for a

24 member of the Armed Forces shown in the loca-
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1 tor service shall be the duty address of that

2 member in the case of a member—

3 (i) who is permanently assigned over4 seas, to a vessel, or to a routinely

5 deployable unit; or

6 (ii) with respect to whom the Sec7 retary concerned makes a determination

8 that the member’s residential address

9 should not be disclosed due to national se10 curity or safety concerns.

11 (3) UPDATING OF LOCATOR INFORMATION.—

12 Within 30 days after a member listed in the locator

13 service establishes a new residential address (or a

14 new duty address, in the case of a member covered

15 by paragraph (2)(B)), the Secretary concerned shall

16 update the locator service to indicate the new ad17 dress of the member.

18 (4) AVAILABILITY OF INFORMATION.—The Sec19 retary of Defense shall make information regarding

20 the address of a member of the Armed Forces listed

21 in the locator service available, on request, to the

22 Federal Parent Locator Service established under

23 section 453 of the Social Security Act.

24 (b) FACILITATING GRANTING OF LEAVE FOR AT25 TENDANCE AT HEARINGS.—
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1 (1) REGULATIONS.—The Secretary of each

2 military department, and the Secretary of Transpor3 tation with respect to the Coast Guard when it is

4 not operating as a service in the Navy, shall pre5 scribe regulations to facilitate the granting of leave

6 to a member of the Armed Forces under the juris7 diction of that Secretary in a case in which—

8 (A) the leave is needed for the member to

9 attend a hearing described in paragraph (2);

10 (B) the member is not serving in or with

11 a unit deployed in a contingency operation (as

12 defined in section 101 of title 10, United States

13 Code); and

14 (C) the exigencies of military service (as

15 determined by the Secretary concerned) do not

16 otherwise require that such leave not be grant17 ed.

18 (2) COVERED HEARINGS.—Paragraph (1) ap19 plies to a hearing that is conducted by a court or

20 pursuant to an administrative process established

21 under State law, in connection with a civil action—

22 (A) to determine whether a member of the

23 Armed Forces is a natural parent of a child; or
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1 (B) to determine an obligation of a mem2 ber of the Armed Forces to provide child sup3 port.

4 (3) DEFINITIONS.—For purposes of this sub5 section:

6 (A) The term ‘‘court’’ has the meaning

7 given that term in section 1408(a) of title 10,

8 United States Code.

9 (B) The term ‘‘child support’’ has the

10 meaning given such term in section 459(i) of

11 the Social Security Act (42 U.S.C. 659(i)).

12 (c) PAYMENT OF MILITARY RETIRED PAY IN COM13 PLIANCE WITH CHILD SUPPORT ORDERS.—

14 (1) DATE OF CERTIFICATION OF COURT

15 ORDER.—Section 1408 of title 10, United States

16 Code, as amended by section 14762(c)(4) of this

17 Act, is amended—

18 (A) by redesignating subsections (i) and (j)

19 as subsections (j) and (k), respectively; and

20 (B) by inserting after subsection (h) the

21 following:

22 ‘‘(i) CERTIFICATION DATE.—It is not necessary that

23 the date of a certification of the authenticity or complete24 ness of a copy of a court order for child support received

25 by the Secretary concerned for the purposes of this section
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1 be recent in relation to the date of receipt by the Sec2 retary.’’.

3 (2) PAYMENTS CONSISTENT WITH ASSIGN4 MENTS OF RIGHTS TO STATES.—Section 1408(d)(1)

5 of such title is amended by inserting after the 1st

6 sentence the following: ‘‘In the case of a spouse or

7 former spouse who, pursuant to section 405(a)(8) of

8 the Social Security Act (42 U.S.C. 605(a)(8)), as9 signs to a State the rights of the spouse or former

10 spouse to receive support, the Secretary concerned

11 may make the child support payments referred to in

12 the preceding sentence to that State in amounts con13 sistent with that assignment of rights.’’.

14 (3) ARREARAGES OWED BY MEMBERS OF THE

15 UNIFORMED SERVICES.—Section 1408(d) of such

16 title is amended by adding at the end the following:

17 ‘‘(6) In the case of a court order for which effective

18 service is made on the Secretary concerned on or after

19 the date of the enactment of this paragraph and which

20 provides for payments from the disposable retired pay of

21 a member to satisfy the amount of child support set forth

22 in the order, the authority provided in paragraph (1) to

23 make payments from the disposable retired pay of a mem24 ber to satisfy the amount of child support set forth in a

25 court order shall apply to payment of any amount of child
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1 support arrearages set forth in that order as well as to

2 amounts of child support that currently become due.’’.

3 (4) PAYROLL DEDUCTIONS.—The Secretary of

4 Defense shall begin payroll deductions within 30

5 days after receiving notice of withholding, or for the

6 first pay period that begins after such 30-day pe7 riod.

8 SEC. 14764. VOIDING OF FRAUDULENT TRANSFERS.

9 Section 466 (42 U.S.C. 666), as amended by section

10 14721 of this Act, is amended by adding at the end the

11 following:

12 ‘‘(g) LAWS VOIDING FRAUDULENT TRANSFERS.—In

13 order to satisfy section 454(20)(A), each State must have

14 in effect—

15 ‘‘(1)(A) the Uniform Fraudulent Conveyance

16 Act of 1981;

17 ‘‘(B) the Uniform Fraudulent Transfer Act of

18 1984; or

19 ‘‘(C) another law, specifying indicia of fraud

20 which create a prima facie case that a debtor trans21 ferred income or property to avoid payment to a

22 child support creditor, which the Secretary finds af23 fords comparable rights to child support creditors;

24 and
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1 ‘‘(2) procedures under which, in any case in

2 which the State knows of a transfer by a child sup3 port debtor with respect to which such a prima facie

4 case is established, the State must—

5 ‘‘(A) seek to void such transfer; or

6 ‘‘(B) obtain a settlement in the best inter7 ests of the child support creditor.’’.

8 SEC. 14765. SENSE OF THE CONGRESS THAT STATES

9 SHOULD SUSPEND DRIVERS’, BUSINESS, AND

10 OCCUPATIONAL LICENSES OF PERSONS

11 OWING PAST-DUE CHILD SUPPORT.

12 It is the sense of the Congress that each State should

13 suspend any driver’s license, business license, or occupa14 tional license issued to any person who owes past-due child

15 support.

16 SEC. 14766. WORK REQUIREMENT FOR PERSONS OWING

17 PAST-DUE CHILD SUPPORT.

18 Section 466(a) of the Social Security Act (42 U.S.C.

19 666(a)), as amended by sections 14701(a), 14715,

20 14717(a), and 14723 of this Act, is amended by adding

21 at the end the following:

22 ‘‘(16) PROCEDURES TO ENSURE THAT PERSONS

23 OWING PAST-DUE SUPPORT WORK OR HAVE A PLAN

24 FOR PAYMENT OF SUCH SUPPORT.—
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1 ‘‘(A) Procedures requiring the State, in

2 any case in which an individual owes past-due

3 support with respect to a child receiving assist4 ance under a State program funded under part

5 A, to seek a court order that requires the indi6 vidual to—

7 ‘‘(i) pay such support in accordance

8 with a plan approved by the court; or

9 ‘‘(ii) if the individual is subject to

10 such a plan and is not incapacitated, par11 ticipate in such work activities (as defined

12 in section 404(b)(1)) as the court deems

13 appropriate.

14 ‘‘(B) As used in subparagraph (A), the

15 term ‘past-due support’ means the amount of a

16 delinquency, determined under a court order, or

17 an order of an administrative process estab18 lished under State law, for support and mainte19 nance of a child, or of a child and the parent

20 with whom the child is living.’’.

21 SEC. 14767. DEFINITION OF SUPPORT ORDER.

22 Section 453 (42 U.S.C. 653) as amended by sections

23 14716 and 14746(b) of this Act, is amended by adding

24 at the end the following:
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1 ‘‘(o) SUPPORT ORDER DEFINED.—As used in this

2 part, the term ‘support order’ means an order issued by

3 a court or an administrative process established under

4 State law that requires support and maintenance of a child

5 or of a child and the parent with whom the child is liv6 ing.’’.

7 SEC. 14768. LIENS.

8 Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended

9 to read as follows:

10 ‘‘(4) Procedures under which—

11 ‘‘(A) liens arise by operation of law against

12 real and personal property for amounts of over13 due support owed by an absent parent who re14 sides or owns property in the State; and

15 ‘‘(B) the State accords full faith and credit

16 to liens described in subparagraph (A) arising

17 in another State, without registration of the un18 derlying order.’’.

19 SEC. 14769. STATE LAW AUTHORIZING SUSPENSION OF LI20 CENSES.

21 Section 466(a) (42 U.S.C. 666(a)), as amended by

22 sections 14715, 14717(a), and 14723 of this Act, is

23 amended by adding at the end the following:

24 ‘‘(15) AUTHORITY TO WITHHOLD OR SUSPEND

25 LICENSES.—Procedures under which the State has
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1 (and uses in appropriate cases) authority to withhold

2 or suspend, or to restrict the use of driver’s licenses,

3 professional and occupational licenses, and rec4 reational licenses of individuals owing overdue sup5 port or failing, after receiving appropriate notice, to

6 comply with subpoenas or warrants relating to pa7 ternity or child support proceedings.’’.

8 CHAPTER 8—MEDICAL SUPPORT

9 SEC. 14771. TECHNICAL CORRECTION TO ERISA DEFINI10 TION OF MEDICAL CHILD SUPPORT ORDER.

11 (a) IN GENERAL.—Section 609(a)(2)(B) of the Em12 ployee Retirement Income Security Act of 1974 (29

13 U.S.C. 1169(a)(2)(B)) is amended—

14 (1) by striking ‘‘issued by a court of competent

15 jurisdiction’’;

16 (2) by striking the period at the end of clause

17 (ii) and inserting a comma; and

18 (3) by adding, after and below clause (ii), the

19 following:

20 ‘‘if such judgment, decree, or order (I) is issued

21 by a court of competent jurisdiction or (II) is

22 issued through an administrative process estab23 lished under State law and has the force and ef24 fect of law under applicable State law.’’.

25 (b) EFFECTIVE DATE.—
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1 (1) IN GENERAL.—The amendments made by

2 this section shall take effect on the date of the en3 actment of this Act.

4 (2) PLAN AMENDMENTS NOT REQUIRED UNTIL

5 JANUARY 1, 1996.—Any amendment to a plan re6 quired to be made by an amendment made by this

7 section shall not be required to be made before the

8 first plan year beginning on or after January 1,

9 1996, if—

10 (A) during the period after the date before

11 the date of the enactment of this Act and be12 fore such first plan year, the plan is operated

13 in accordance with the requirements of the

14 amendments made by this section; and

15 (B) such plan amendment applies retro16 actively to the period after the date before the

17 date of the enactment of this Act and before

18 such first plan year.

19 A plan shall not be treated as failing to be operated

20 in accordance with the provisions of the plan merely

21 because it operates in accordance with this para22 graph.
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1 CHAPTER 9—ENHANCING RESPONSIBIL2 ITY AND OPPORTUNITY FOR NON3 RESIDENTIAL PARENTS

4 SEC. 14781. GRANTS TO STATES FOR ACCESS AND VISITA5 TION PROGRAMS.

6 Part D of title IV (42 U.S.C. 651–669) is amended

7 by adding at the end the following:

8 ‘‘SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITA9 TION PROGRAMS.

10 ‘‘(a) IN GENERAL.—The Administration for Children

11 and Families shall make grants under this section to en12 able States to establish and administer programs to sup13 port and facilitate absent parents’ access to and visitation

14 of their children, by means of activities including medi15 ation (both voluntary and mandatory), counseling, edu16 cation, development of parenting plans, visitation enforce17 ment (including monitoring, supervision and neutral drop18 off and pickup), and development of guidelines for visita19 tion and alternative custody arrangements.

20 ‘‘(b) AMOUNT OF GRANT.—The amount of the grant

21 to be made to a State under this section for a fiscal year

22 shall be an amount equal to the lesser of—

23 ‘‘(1) 90 percent of State expenditures during

24 the fiscal year for activities described in subsection

25 (a); or
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1 ‘‘(2) the allotment of the State under sub2 section (c) for the fiscal year.

3 ‘‘(c) ALLOTMENTS TO STATES.—

4 ‘‘(1) IN GENERAL.—The allotment of a State

5 for a fiscal year is the amount that bears the same

6 ratio to the amount appropriated for grants under

7 this section for the fiscal year as the number of chil8 dren in the State living with only 1 biological parent

9 bears to the total number of such children in all

10 States.

11 ‘‘(2) MINIMUM ALLOTMENT.—The Administra12 tion for Children and Families shall adjust allot13 ments to States under paragraph (1) as necessary to

14 ensure that no State is allotted less than—

15 ‘‘(A) $50,000 for fiscal year 1996 or 1997;

16 or

17 ‘‘(B) $100,000 for any succeeding fiscal

18 year.

19 ‘‘(d) NO SUPPLANTATION OF STATE EXPENDITURES

20 FOR SIMILAR ACTIVITIES.—A State to which a grant is

21 made under this section may not use the grant to supplant

22 expenditures by the State for activities specified in sub23 section (a), but shall use the grant to supplement such

24 expenditures at a level at least equal to the level of such

25 expenditures for fiscal year 1995.
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1 ‘‘(e) STATE ADMINISTRATION.—Each State to which

2 a grant is made under this section—

3 ‘‘(1) may administer State programs funded

4 with the grant, directly or through grants to or con5 tracts with courts, local public agencies, or non-prof6 it private entities;

7 ‘‘(2) shall not be required to operate such pro8 grams on a statewide basis; and

9 ‘‘(3) shall monitor, evaluate, and report on such

10 programs in accordance with regulations prescribed

11 by the Secretary.’’.

12 CHAPTER 10—EFFECT OF ENACTMENT

13 SEC. 14791. EFFECTIVE DATES.

14 (a) IN GENERAL.—Except as otherwise specifically

15 provided (but subject to subsections (b) and (c))—

16 (1) the provisions of this subtitle requiring the

17 enactment or amendment of State laws under sec18 tion 466 of the Social Security Act, or revision of

19 State plans under section 454 of such Act, shall be

20 effective with respect to periods beginning on and

21 after October 1, 1996; and

22 (2) all other provisions of this subtitle shall be23 come effective upon enactment.
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1 (b) GRACE PERIOD FOR STATE LAW CHANGES.—The

2 provisions of this subtitle shall become effective with re3 spect to a State on the later of—

4 (1) the date specified in this subtitle, or

5 (2) the effective date of laws enacted by the leg6 islature of such State implementing such provisions,

7 but in no event later than the first day of the first cal8 endar quarter beginning after the close of the first regular

9 session of the State legislature that begins after the date

10 of the enactment of this Act. For purposes of the previous

11 sentence, in the case of a State that has a 2-year legisla12 tive session, each year of such session shall be deemed to

13 be a separate regular session of the State legislature.

14 (c) GRACE PERIOD FOR STATE CONSTITUTIONAL

15 AMENDMENT.—A State shall not be found out of compli16 ance with any requirement enacted by this subtitle if the

17 State is unable to so comply without amending the State

18 constitution until the earlier of—

19 (1) 1 year after the effective date of the nec20 essary State constitutional amendment; or

21 (2) 5 years after the date of the enactment of

22 this subtitle.
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1 CHAPTER 11—MISCELLANEOUS

2 PROVISIONS

3 SEC. 14801. SCORING.

4 Section 251(b)(2) of the Balanced Budget and Emer5 gency Deficit Control Act of 1985 is amended by adding

6 at the end the following new subparagraph:

7 ‘‘(H) SPECIAL ALLOWANCE FOR WELFARE RE8 FORM.—For any fiscal year, the adjustments shall

9 be appropriations for discretionary programs result10 ing from the Personal Responsibility Act of 1995 (as

11 described in the joint explanatory statement accom12 panying a conference report on that Act) in discre13 tionary accounts and the outlays flowing in all years

14 from such appropriations (but not to exceed

15 amounts authorized for those programs by that Act

16 for that fiscal year) minus appropriations for com17 parable discretionary programs for fiscal year 1995

18 (as described in the joint explanatory statement ac19 companying a conference report on that Act.’’.

20 SEC. 14802. PROVISIONS TO ENCOURAGE ELECTRONIC BEN21 EFIT TRANSFER SYSTEMS.

22 Section 904 of the Electronic Fund Transfer Act (15

23 U.S.C. 1693b) is amended—

24 (1) by striking ‘‘(d) In the event’’ and inserting

25 ‘‘(d) APPLICABILITY TO SERVICE PROVIDERS
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1 OTHER THAN CERTAIN FINANCIAL INSTITU2 TIONS.—

3 ‘‘(1) IN GENERAL.—In the event’’; and

4 (2) by adding at the end the following new

5 paragraph:

6 ‘‘(2) STATE AND LOCAL GOVERNMENT ELEC7 TRONIC BENEFIT TRANSFER PROGRAMS.—

8 ‘‘(A) EXEMPTION GENERALLY.—The dis9 closures, protections, responsibilities, and rem10 edies established under this title, and any regu11 lation prescribed or order issued by the Board

12 in accordance with this title, shall not apply to

13 any electronic benefit transfer program estab14 lished under State or local law or administered

15 by a State or local government.

16 ‘‘(B) EXCEPTION FOR DIRECT DEPOSIT

17 INTO RECIPIENT’S ACCOUNT.—Subparagraph

18 (A) shall not apply with respect to any elec19 tronic funds transfer under an electronic benefit

20 transfer program for deposits directly into a

21 consumer account held by the recipient of the

22 benefit.

23 ‘‘(C) RULE OF CONSTRUCTION.—No provi24 sion of this paragraph may be construed as—
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1 ‘‘(i) affecting or altering the protec2 tions otherwise applicable with respect to

3 benefits established by Federal, State, or

4 local law; or

5 ‘‘(ii) otherwise superseding the appli6 cation of any State or local law.

7 ‘‘(D) ELECTRONIC BENEFIT TRANSFER

8 PROGRAM DEFINED.—For purposes of this

9 paragraph, the term ‘electronic benefit transfer

10 program’—

11 ‘‘(i) means a program under which a

12 government agency distributes needs-tested

13 benefits by establishing accounts to be

14 accessed by recipients electronically, such

15 as through automated teller machines, or

16 point-of-sale terminals; and

17 ‘‘(ii) does not include employment-re18 lated payments, including salaries and pen19 sion, retirement, or unemployment benefits

20 established by Federal, State, or local gov21 ernments.’’.
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1 TITLE XV—VETERANS’ BENEFITS

2 AND SERVICES

3 Subtitle A—Administrative

4 Reforms

5 SEC. 15001. REDUCTION IN OVERHEAD EXPENSES OF DE6 PARTMENT OF VETERANS AFFAIRS.

7 (a) IN GENERAL.—The amount obligated by the De8 partment of Veterans Affairs during fiscal year 1996 for

9 overhead expenses shall not exceed an amount sufficient

10 to reduce outlays for such expenses during such fiscal year

11 (as compared to such outlays during fiscal year 1995) by

12 $424,000,000.

13 (b) OVERHEAD EXPENSES.—For purposes of this

14 section, the term ‘‘overhead expenses’’ means expenses

15 within the following object classifications established by

16 the Director of the Office of Management and Budget:

17 (1) 21.0 (travel and transportation of persons).

18 (2) 22.0 (transportation of things).

19 (3) 23.1 (rental payments to GSA).

20 (4) 23.3 (communications, utilities, and mis21 cellaneous charges).

22 (5) 24.0 (printing and reproduction).

23 (6) 25.1 (consulting services).

24 (7) 25.2 (other services).

25 (8) 25.5 (research and development contracts).
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1 (9) 26.0 (supplies and materials).

2 (10) 31 (equipment).

3 Subtitle B—Extension of Certain

4 Veterans Programs

5 SEC. 15011. PERMANENT EXTENSION OF AUTHORITY FOR

6 COPAYMENT CHARGE FOR MEDICATIONS.

7 Section 1722A of title 38, United States Code, is

8 amended by striking subsection (c).

9 SEC. 15012. PERMANENT EXTENSION OF AUTHORITY FOR

10 MEDICAL CARE COST RECOVERY.

11 Section 1729(a)(2)(E) of title 38, United States

12 Code, is amended by striking ‘‘before October 1, 1998,’’.

13 SEC. 15013. PERMANENT EXTENSION OF AUTHORITY FOR

14 INCOME VERIFICATION PROCEDURES.

15 Section 5317 of title 38, United States Code, is

16 amended by striking subsection (g).

17 SEC. 15014. PERMANENT EXTENSION OF AUTHORITY FOR

18 PROCEDURES APPLICABLE TO LIQUIDATION

19 SALES ON DEFAULTED HOME LOANS.

20 Section 3732(c) of title 38, United States Code, is

21 amended by striking paragraph (11).
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1 Subtitle C—Home Loan Guarantee

2 Program Reforms

3 SEC. 15021. RESTRICTION ON USE OF MULTIPLE VA HOUS4 ING LOAN GUARANTY BENEFITS.

5 (a) REPEAL OF CIRCUMSTANCES EXCLUDED FROM

6 COMPUTATION OF AGGREGATE AMOUNT OF GUARANTY

7 AVAILABLE.—Section 3702 of title 38, United States

8 Code, is amended by striking out subsection (b).

9 (b) CONFORMING AMENDMENTS.—(1) Section

10 3703(a)(1)(B) of such title is amended by striking out

11 ‘‘and not restored as a result of the exclusion in section

12 3702(b) of this title’’.

13 (2) Section 3710(e)(2) of such title is amended by

14 striking out the last sentence thereof.

15 (3) Section 3712 of such title is amended—

16 (A) in subsection (a), by striking out the last

17 sentence of paragraphs (4)(B) and (5)(B); and

18 (B) in subsection (b)—

19 (i) by striking out ‘‘(1)’’ after ‘‘(b)’’ and

20 inserting in lieu thereof ‘‘(b)’’; and

21 (ii) by striking out paragraph (2).

22 (c) EFFECTIVE DATE.—The amendments made by

23 subsections (a) and (b) applies with respect to loans guar24 anteed, insured, or made after September 30, 1996.
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1 SEC. 15022. EXTENSIONS OF CERTAIN AUTHORITIES RELAT2 ING TO HOUSING LOANS.

3 (a) LOAN ORIGINATION FEE.—Paragraph (4) of sec4 tion 3729(a) of such title is amended by striking out ‘‘Oc5 tober 1, 1998’’ and inserting in lieu thereof ‘‘October 1,

6 2000’’.

7 (b) MULTIPLE HOME LOAN FEES.—Paragraph

8 (5)(C) of such section is amended by striking out ‘‘October

9 1, 1998’’ and inserting in lieu thereof ‘‘October 1, 2000’’.

10 Subtitle D—Medical Program

11 Reforms

12 SEC. 15031. MORE EFFICIENT MANAGEMENT AND DELIV13 ERY OF VETERANS HEALTH CARE.

14 (a) REQUIRED SAVINGS.—The Secretary of Veterans

15 Affairs shall manage the medical care system of the De16 partment of Veterans Affairs so as to achieve savings of

17 $3,200,000,000 by the end of fiscal year 2000 compared

18 to the costs of that system through that fiscal year as19 sumed in the Budget of the President for fiscal year 1995.

20 (b) PROSPECTIVE PAYMENT SYSTEM.—In order to

21 achieve the savings required by subsection (a), the Sec22 retary shall establish a system known as a Prospective

23 Payment System for the allocation of resources for hos24 pital care within the Department of Veterans Affairs. In

25 establishing such a system, the Secretary shall consult

26 with the Secretary of Health and Human Services and
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1 shall establish Diagnosis-Related Groups (DRGs) to re2 flect the average cost of efficient care for different groups

3 of patients.

4 (c) ADMINISTRATIVE FLEXIBILITY.—In order to im5 plement the system required by subsection (b) and to

6 achieve the savings required by subsection (a), the Sec7 retary shall have discretion to control the nature and loca8 tion of Department facilities, the total number of health

9 care beds of the Department, and the total staffing level

10 of health-related workers in the Department.

11 SEC. 15032. CLOSURE AND CONVERSION OF INEFFICIENT

12 OR UNDERUSED FACILITIES IN VETERANS’

13 HOSPITALS.

14 (a) IN GENERAL.—In order to achieve greater effi15 ciency in the operation of the Department of Veterans Af16 fairs, the Secretary of Veterans Affairs shall reduce the

17 number of surgical and other acute care facilities of the

18 Department that have low rates of use or occupancy. The

19 Secretary shall carry out the preceding sentence by closing

20 small hospitals or underused units within hospitals or by

21 converting such hospitals or underused units into facilities

22 offering other services which are less costly and for which

23 there is greater demand.

24 (b) CRITERIA.—In considering a facility for closure

25 or conversion under subsection (b), the Secretary shall
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1 take into consideration whether there are adequate alter2 native sources of care and whether the number of veterans

3 using the facility is below average for Department of Vet4 erans Affairs facilities.

5 SEC. 15033. REDUCTION IN EXPENDITURES FOR MAJOR

6 CONSTRUCTION.

7 (a) LIMITATION ON MAJOR CONSTRUCTION

8 PROJECTS.—During fiscal years 1996 through 2000, the

9 Secretary of Veterans Affairs may carry out a major con10 struction project only in a geographic area that does not

11 contain underutilized non-Department of Veterans Affairs

12 facilities though which the Secretary could obtain by con13 tract the health care capacity that would otherwise be ob14 tained through the major construction project.

15 (b) COST SAVINGS TO BE ACHIEVED.—In order to

16 carry out subsection (a), the Secretary shall revise pro17 jected expenditures for major construction projects for the

18 fiscal years covered by subsection (a) in order to reduce

19 those projected expenditures by 10 percent.

20 Subtitle E—Other Veterans

21 Programs Reforms

22 SEC. 15041. ELIMINATION OF CERTAIN SUNSET DATES.

23 The following provisions of law are repealed:

24 (1) Section 8013(e) of the Omnibus Budget

25 Reconciliation Act of 1990 (38 U.S.C. 1710 note).
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1 (2) Section 5503(f)(7) of title 38, United States

2 Code.

3 SEC. 15042. THIRD-PARTY REIMBURSEMENT.

4 Section 1729(a)(2)(E) is amended by striking out

5 ‘‘October 1, 1998’’ and inserting in lieu thereof ‘‘October

6 1, 1999’’.

7 TITLE XVI—ADMINISTRATION OF

8 JUSTICE

9 Subtitle A—Authorization of

10 Appropriations

11 CHAPTER 1—DEPARTMENT OF JUSTICE

12 SEC. 16001. AUTHORIZATION OF APPROPRIATIONS FOR

13 THE DEPARTMENT OF JUSTICE.

14 There is authorized to be appropriated for each of

15 the fiscal years 1996, 1997, 1998, 1999, and 2000,

16 $9,517,139,750 to carry out the activities of the Depart17 ment of Justice (including any bureau, office, board, divi18 sion, commission, or subdivision thereof) which shall in19 clude the following sums authorized to be appropriated—

20 (1) for General Administration, Salaries and

21 Expenses: $73,229,000;

22 (2) for the Office of Inspector General:

23 $30,500,000; which shall include—

24 (A) not to exceed $10,000 to meet unfore25 seen emergencies of a confidential character, to
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1 be expended under the direction of the Attorney

2 General, and to be accounted for solely on the

3 certificate of the Attorney General; and

4 (B) funds for the acquisition, lease, main5 tenance and operation of motor vehicles without

6 regard to the general purchase price limitation;

7 (3) for the United States Parole Commission:

8 $6,781,000;

9 (4) for General Legal Activities: $407,234,000;

10 which shall include—

11 (A) not to exceed $20,000 for expenses

12 necessary in the collection of evidence, to be ex13 pended under the direction of the Attorney

14 General and accounted for solely on the certifi15 cate of the Attorney General;

16 (B) funds for the rent of private or Gov17 ernment owned space in the District of Colum18 bia; and

19 (C) not to exceed $2,762,000 for the Office

20 of Legal Counsel:

21 except that notwithstanding any other provision of

22 law, not to exceed $2,000,000 for expenses of the

23 Department of Justice associated with processing

24 cases under the National Childhood Vaccine Injury

25 Act of 1986 shall be reimbursed from the Special
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1 fund established to pay judgments awarded under

2 the Act;

3 (5) for the Antitrust Division: $67,658,750;

4 (6) for the United States Attorneys:

5 $817,757,000;

6 (7) for the United States Marshals Service:

7 $341,471,000; which shall include—

8 (A) funds for the acquisition, lease, main9 tenance, and operation of vehicles and aircraft;

10 and

11 (B) funds for the purchase of passenger

12 motor vehicles for police-type use without re13 gard to the general purchase price limitation for

14 the current fiscal year:

15 except that notwithstanding the provisions of section

16 3302 of title 31, United States Code, for fiscal year

17 1992 and hereafter the Director of the United

18 States Marshals Service may collect fees and ex19 penses for the service authorized by section 1921 of

20 title 28, United States Code, and credit not to ex21 ceed $1,000,000 of such fees to this appropriation to

22 be used for salaries and other expenses incurred in

23 providing these services;

24 (8) For the Support of United States Prisoners

25 in the custody of the United States Marshals Service
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1 and as authorized in section 4013 of title 18, United

2 States Code, but not including expenses otherwise

3 provided for in appropriations available to the Attor4 ney General, $268,481,000, to remain available until

5 expended; of which not to exceed $15,000,000 shall

6 be available under the Cooperative Agreement Pro7 gram;

8 (9) For Fees and Expenses of Witnesses:

9 $78,000,000; which shall remain available until ex10 pended; and which shall include—

11 (A) funds for expenses, mileage, compensa12 tion, and per diem of witnesses, for private

13 counsel expenses, and for per diem in lieu of

14 subsistence, as authorized by law, including ad15 vances; and

16 (B) not to exceed $2,000,000 for planning,

17 construction, renovation, maintenance, remodel18 ing, and repair of buildings and the purchase of

19 equipment incident thereto for protected wit20 ness safesites;

21 (10) For the Community Relations Service:

22 $20,379,000;

23 (11) For the United States Trustee System

24 Fund: $100,216,000; to remain available until ex25 pended and to be derived from the Fund, except that
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1 deposits to the Fund are available in such amounts

2 as may be necessary to pay refunds due depositors;

3 (12) For the Assets Forfeiture Fund:

4 $439,000,000; to be derived from the Fund, as may

5 be necessary for the payment of expenses as author6 ized by subparagraphs (A)(ii), (B), (C), (F), and (G)

7 of section 524(c)(1) of title 28, United States Code;

8 (13) For Organized Crime Drug Enforcement:

9 $500,000,000; for expenses, not otherwise provided

10 for, for the investigation and prosecution of individ11 uals involved in organized crime drug trafficking, ex12 cept that any amounts obligated from appropriations

13 under this heading may be used under authorities

14 available to the organizations reimbursed from this

15 appropriation;

16 (14) For the Federal Bureau of Investigation:

17 $2,062,576,000; which shall include—

18 (A) funds for the purchase for police-type

19 use of passenger motor vehicles without regard

20 to the general purchase price limitation for the

21 current fiscal year, and for the hire of pas22 senger motor vehicles;

23 (B) funds for the acquisition, lease, main24 tenance and operation of aircraft;
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1 (C) not to exceed $70,000 to meet unfore2 seen emergencies of a confidential character to

3 be expended under the direction of the Attorney

4 General and to be accounted for solely on the

5 certificate of the Attorney General; and

6 (D) not to exceed $30,000 for official re7 ception and representation expenses;

8 (15) For the Drug Enforcement Administra9 tion: $1,000,000,000; which shall include—

10 (A) funds for the purchase for police-type

11 use of passenger motor vehicles, without regard

12 to the general purchase price limitation for the

13 current fiscal year, and for the hire of pas14 senger motor vehicles;

15 (B) funds for the acquisition, lease, main16 tenance and operation of aircraft;

17 (C) funds for conducting drug education

18 programs, including travel and related expenses

19 for participants in such programs and the dis20 tribution of items of token value that promote

21 the goals of such programs; and

22 (D) not to exceed $70,000 to meet unfore23 seen emergencies of a confidential character to

24 be expended under the direction of the Attorney
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1 General and to be accounted for solely on the

2 certificate of the Attorney General;

3 (16) For the Immigration and Naturalization

4 Service: $1,056,826,000; which shall include—

5 (A) funds for the purchase for police-type

6 use of passenger motor vehicles, without regard

7 to the general purchase price limitation for the

8 current fiscal year, and for the hire of pas9 senger motor vehicles;

10 (B) funds for the acquisition, lease, main11 tenance and operation of aircraft;

12 (C) funds for the purchase of uniforms

13 without regard to the general purchase price

14 limitation for the current fiscal year; and

15 (D) not to exceed $50,000 to meet unfore16 seen emergencies of a confidential character to

17 be expended under the direction of the Attorney

18 General and to be accounted for solely on the

19 certificate of the Attorney General;

20 (17) For the Federal Prison System:

21 $2,246,031,000; including $11,055,000 for the Na22 tional Institute of Corrections and $339,225,000 for

23 buildings and facilities; and

24 (18) The Federal Prison Industries, Incor25 porated is authorized to make expenditures, within
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1 the limits of funds and borrowing authority avail2 able, and in accord with the law, and to make such

3 contracts and commitments, without regard to fiscal

4 year limitations as provided by section 104 of the

5 Government Corporation Control Act as may be nec6 essary in carrying out the program set forth in the

7 budget for the current fiscal year for such corpora8 tion, including purchases of and hire of passenger

9 motor vehicles.

10 SEC. 16002. REDUCTION IN OVERHEAD EXPENSES OF DE11 PARTMENT OF JUSTICE.

12 (a) IN GENERAL.—The amount obligated by the De13 partment of Justice during fiscal year 1996 for overhead

14 expenses shall not exceed an amount sufficient to reduce

15 outlays for such expenses during such fiscal year (as com16 pared to such outlays during fiscal year 1995) by

17 $401,000,000.

18 (b) OVERHEAD EXPENSES.—For purposes of this

19 section, the term ‘‘overhead expenses’’ means expenses

20 within the following object classifications established by

21 the Director of the Office of Management and Budget:

22 (1) 21.0 (travel and transportation of persons).

23 (2) 22.0 (transportation of things).

24 (3) 23.1 (rental payments to GSA).
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1 (4) 23.3 (communications, utilities, and mis2 cellaneous charges).

3 (5) 24.0 (printing and reproduction).

4 (6) 25.1 (consulting services).

5 (7) 25.2 (other services).

6 (8) 25.5 (research and development contracts).

7 (9) 26.0 (supplies and materials).

8 (10) 31 (equipment).

9 CHAPTER 2—OTHER LAW ENFORCEMENT

10 ENTITIES

11 SEC. 16011. AUTHORIZATION OF APPROPRIATIONS FOR

12 THE UNITED STATES CUSTOMS SERVICE.

13 There is authorized to be appropriated for each of

14 the fiscal years 1996, 1997, 1998, 1999, and 2000,

15 $1,360,665,000 for salaries and expenses of the United

16 States Customs Service.

17 SEC. 16012. AUTHORIZATION OF APPROPRIATIONS FOR

18 THE UNITED STATES SECRET SERVICE.

19 There is authorized to be appropriated for each of

20 the fiscal years 1996, 1997, 1998, 1999, and 2000,

21 $461,992,000 for salaries and expenses of the United

22 States Secret Service.
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1 SEC. 16013. AUTHORIZATION OF APPROPRIATIONS FOR

2 THE BUREAU OF ALCOHOL, TOBACCO, AND

3 FIREARMS.

4 There is authorized to be appropriated for each of

5 the fiscal years 1996, 1997, 1998, 1999, and 2000,

6 $188,000,000 for salaries and expenses of the Bureau of

7 Alcohol, Tobacco, and Firearms.

8 SEC. 16014. AUTHORIZATION OF APPROPRIATIONS FOR DE9 FENDER SERVICES.

10 There is authorized to be appropriated for each of

11 the fiscal years 1996, 1997, 1998, 1999, and 2000,

12 $250,000,000 for defender services authorized under sec13 tion 3006A of title 18 of the United States Code.

14 CHAPTER 3—ADMINISTRATIVE REFORMS

15 SEC. 16021. IMPROVEMENT OF U.S. MARSHALS SERVICE.

16 (a) PHASING OUT OF POLITICAL APPOINTEES.—

17 (1) UNCONFIRMED APPOINTEES.—Any individ18 ual serving as a United States marshal to whose ap19 pointment to such office the Senate has not given its

20 advice and consent as of the date of the enactment

21 of this Act, may no longer serve in such position on

22 or after such date of enactment, except pursuant to

23 appointment by the Attorney General under the

24 amendments made by this section. The Attorney

25 General shall, before appointing any other individual

26 to such vacated position, offer such vacated position
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1 to the individual then serving as deputy marshal in

2 that office of United States marshal. The individual

3 appointed to fill such vacated position shall be ap4 pointed for the remainder of the unexpired term of

5 his or her predecessor.

6 (2) CONFIRMED APPOINTEES.—Any individual

7 who, on the date of the enactment of this Act, is a

8 United States marshal to whose appointment the

9 Senate has given its advice and consent, may not

10 serve in such position on or after December 31,

11 1995, except pursuant to appointment by the Attor12 ney General under the amendments made by this

13 section. The Attorney General shall, before appoint14 ing any other individual to such vacated position,

15 offer such vacated position to the individual then

16 serving as deputy marshal in that office of United

17 States marshal. The individual appointed to fill such

18 vacated position shall be appointed for the remain19 der of the unexpired term of his or her predecessor.

20 (b) APPOINTMENT OF UNITED STATES MAR21 SHALS.—Section 561 of title 28, United States Code, is

22 amended—

23 (1) in subsection (c) by striking ‘‘The President

24 shall appoint, by and with the advice and consent of
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1 the Senate,’’ and inserting ‘‘The Attorney General

2 shall appoint’’; and

3 (2) in subsection (d) by striking ‘‘President’’

4 and inserting ‘‘Attorney General’’.

5 (c) OVERALL REDUCTION IN NUMBER OF POSI6 TIONS.—

7 (1) ELIMINATION OF POSITIONS OF DEPUTY

8 MARSHAL.—The position of deputy marshal in the

9 70 judicial districts having the least population of all

10 judicial districts shall be abolished, as of—

11 (A) the date of the enactment of this Act,

12 in a case in which subsection (a)(1) applies; or

13 (B) the date on which the United States

14 marshal leaves office under the first sentence of

15 subsection (a)(2), in a case in which such sub16 section applies;

17 and no equivalent position in such districts shall

18 thereafter be created.

19 (2) OVERALL REDUCTION.—The number of

20 full-time equivalent positions in the United States

21 Marshals Service as of January 1, 1996, may not

22 exceed the number of full-time equivalent positions

23 in the United States Marshals Service on the date

24 of the enactment of this Act, minus 70.
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1 (d) CONFORMING AMENDMENTS.—(1) Section 562 of

2 title 28, United States Code, and the item relating to such

3 section in the table of sections at the beginning of chapter

4 37 of such title, are repealed.

5 (2) Section 569 of such title is amended—

6 (A) by striking ‘‘(a)’’; and

7 (B) by striking subsection (b).

8 Subtitle B—Prison Reforms

9 SEC. 16201. PRIVATIZATION OF CORRECTIONAL INSTITU10 TIONS.

11 (a) IN GENERAL.—Chapter 301 of title 18, United

12 States Code, is amended by adding at the end the follow13 ing:

14 ‘‘§ 4014. Privatization of correctional institutions

15 ‘‘The Attorney General shall, not later than 5 years

16 after the date of the enactment of this section and subject

17 to the availability of sums appropriated for this purpose,

18 contract with private persons for the imprisonment, sub19 sistence, care, and proper employment of all persons held

20 in Federal medium to maximum security mainstream pris21 ons known as Federal correctional institutions under the

22 authority of an enactment of Congress. The Attorney Gen23 eral shall phase in the contracts required under this sec24 tion so that contracts cover approximately an additional

25 20 percent of prisoners in such institutions each of the
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1 5 years beginning on the date of the enactment of this

2 section.’’

3 (b) CLERICAL AMENDMENT.—The table of sections

4 at the beginning of chapter 301 of title 18, United States

5 Code, is amended by adding at the end the following new

6 item:

‘‘4014. Privatization of correctional institutions.’’.

7 SEC. 16202. PAYMENT OF PUBLIC SAFETY OFFICERS.

8 Section 1201(b) of the Omnibus Crime Control and

9 Safe Streets Act of 1968 (42 U.S.C. 3796(b)) is amend10 ed—

11 (1) in the first sentence by striking ‘‘appropria12 tions are provided’’ and inserting ‘‘funds are avail13 able under the Victims of Crime Act of 1984 (42

14 U.S.C. 10601 et seq.)’’; and

15 (2) in the second sentence by striking ‘‘there

16 are authorized’’ and all that follows and inserting

17 ‘‘the Attorney General, acting through the Director

18 of the Office of Victims of Crime, shall assign a pri19 ority for payments to public safety officers under the

20 Victims’s of Crime Fund and payment from such

21 fund to public safety officers shall be reduced by a

22 proportionate share to the extent that sufficient

23 funds are not available.
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1 Subtitle C—Justice Assistance

2 Program Reforms

3 SEC. 16301. LEGAL SERVICES CORPORATION.

4 The Legal Services Corporation Act is repealed, the

5 Legal Services Corporation is terminated, and its officers

6 and employees are terminated.

7 SEC. 16302. SURCHARGE ON DEBTS COLLECTED BY THE

8 UNITED STATES.

9 Section 3011(a) of title 28, United States Code, is

10 amended by striking ‘‘10 percent’’ and inserting ‘‘15 per11 cent’’.

12 SEC. 16303. TERMINATE BUREAU OF JUSTICE ASSISTANCE.

13 (a) IN GENERAL.—Part D of title I of the Omnibus

14 Crime Control and Safe Streets Act of 1968 (42 U.S.C.

15 3741 et seq.) is repealed.

16 (b) BUREAU PHASE OUT.—The Attorney General

17 may provide for the orderly phase out of the Bureau of

18 Justice Assistance.

19 SEC. 16304. TERMINATE STATE JUSTICE INSTITUTE.

20 (a) IN GENERAL.—The State Justice Institute Act

21 of 1984 (42 U.S.C. 10701 et seq.) is repealed.

22 (b) INSTITUTE PHASE OUT.— The Attorney General

23 may provide for the orderly phase out of the State Justice

24 Institute.
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1 Subtitle D—Federal Bureau of

2 Investigation Reforms

3 SEC. 16401. RESCISSION OF FUNDS FOR FBI FINGERPRINT

4 LABORATORY IN WEST VIRGINIA.

5 Of the funds made available under the heading ‘‘Fed6 eral Bureau of Investigation—Salaries and Expenses’’ in

7 chapter 2 of title II of Public Law 103–211, the unobli8 gated balance on the date of the enactment of this Act

9 is rescinded.

10 Subtitle E—Other Justice Program

11 Reforms

12 SEC. 16501. AUTHORIZATION OF APPROPRIATIONS FOR

13 THE EQUAL EMPLOYMENT OPPORTUNITY

14 COMMISSION.

15 Section 705 of the Civil Rights Act of 1964 (42

16 U.S.C. 2000e–4) is amended by adding at the end the

17 following:

18 ‘‘(l) There is authorized to be appropriated to carry

19 out this title (excluding subsections (j) and (k) of this sec20 tion) $230,000,000 for each of the fiscal years 1996,

21 1997, 1998, 1999, and 2000.’’.

22 SEC. 16502. HARBOR MAINTENANCE FEES.

23 Section 9505(c) of the Internal Revenue Code of

24 1986 (26 U.S.C. 9505(c)) is amended—
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1 (1) in paragraph (2) by striking ‘‘and’’ at the

2 end;

3 (2) in paragraph (3) by striking the period at

4 the end and inserting ‘‘, and’’; and

5 (3) by adding at the end the following:

6 ‘‘(4) in addition to amounts made available

7 under paragraph (3), for payment of expenses in8 curred by the Department of the Treasury, in fiscal

9 years 1996 through 1999, to ensure that the fees

10 imposed under section 4461 are paid, but not in ex11 cess of $5,000,000 for any such fiscal year.’’.

12 TITLE XVII—GENERAL

13 GOVERNMENT

14 Subtitle A—Administrative

15 Reforms

16 SEC. 17001. REDUCTION IN OVERHEAD EXPENSES OF CER17 TAIN FOREIGN OPERATIONS ACTIVITIES.

18 (a) IN GENERAL.—The aggregate amount obligated

19 during fiscal year 1996 for overhead expenses for activities

20 for which funds are appropriated under the heading

21 ‘‘Funds Appropriated to the President’’ in the Foreign

22 Operations, Export Financing, and Related Programs Ap23 propriations Act shall not exceed an amount sufficient to

24 reduce outlays for such expenses during such fiscal year
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1 (as compared to such outlays during fiscal year 1995) by

2 $461,000,000.

3 (b) OVERHEAD EXPENSES.—For purposes of this

4 section, the term ‘‘overhead expenses’’ means expenses

5 within the following object classifications established by

6 the Director of the Office of Management and Budget:

7 (1) 21.0 (travel and transportation of persons).

8 (2) 22.0 (transportation of things).

9 (3) 23.1 (rental payments to GSA).

10 (4) 23.3 (communications, utilities, and mis11 cellaneous charges).

12 (5) 24.0 (printing and reproduction).

13 (6) 25.1 (consulting services).

14 (7) 25.2 (other services).

15 (8) 25.5 (research and development contracts).

16 (9) 26.0 (supplies and materials).

17 (10) 31 (equipment).

18 SEC. 17002. REDUCTION IN OVERHEAD EXPENSES OF DE19 PARTMENT OF THE TREASURY.

20 (a) IN GENERAL.—The amount obligated by the De21 partment of the Treasury during fiscal year 1996 for over22 head expenses shall not exceed an amount sufficient to re23 duce outlays for such expenses during such fiscal year (as

24 compared to such outlays during fiscal year 1995) by

25 $209,000,000.
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1 (b) OVERHEAD EXPENSES.—For purposes of this

2 section, the term ‘‘overhead expenses’’ means expenses

3 within the following object classifications established by

4 the Director of the Office of Management and Budget:

5 (1) 21.0 (travel and transportation of persons).

6 (2) 22.0 (transportation of things).

7 (3) 23.1 (rental payments to GSA).

8 (4) 23.3 (communications, utilities, and mis9 cellaneous charges).

10 (5) 24.0 (printing and reproduction).

11 (6) 25.1 (consulting services).

12 (7) 25.2 (other services).

13 (8) 25.5 (research and development contracts).

14 (9) 26.0 (supplies and materials).

15 (10) 31 (equipment).

16 SEC. 17003. REDUCTION IN OVERHEAD EXPENSES OF OF17 FICE OF PERSONNEL MANAGEMENT.

18 (a) IN GENERAL.—The amount obligated by the Of19 fice of Personnel Management during fiscal year 1996 for

20 overhead expenses shall not exceed an amount sufficient

21 to reduce outlays for such expenses during such fiscal year

22 (as compared to such outlays during fiscal year 1995) by

23 $12,000,000.

24 (b) OVERHEAD EXPENSES.—For purposes of this

25 section, the term ‘‘overhead expenses’’ means expenses
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1 within the following object classifications established by

2 the Director of the Office of Management and Budget:

3 (1) 21.0 (travel and transportation of persons).

4 (2) 22.0 (transportation of things).

5 (3) 23.1 (rental payments to GSA).

6 (4) 23.3 (communications, utilities, and mis7 cellaneous charges).

8 (5) 24.0 (printing and reproduction).

9 (6) 25.1 (consulting services).

10 (7) 25.2 (other services).

11 (8) 25.5 (research and development contracts).

12 (9) 26.0 (supplies and materials).

13 (10) 31 (equipment).

14 SEC. 17004. REDUCTION IN OVERHEAD EXPENSES OF

15 OTHER INDEPENDENT AGENCIES.

16 (a) IN GENERAL.—The aggregate amount obligated

17 by the independent agencies of the Federal Government

18 during fiscal year 1996 for overhead expenses shall not

19 exceed an amount sufficient to reduce outlays for such ex20 penses during such fiscal year (as compared to such out21 lays during fiscal year 1995) by $347,000,000. The Direc22 tor of the Office of Management and Budget shall estab23 lish obligation limits for each such agency in order to carry

24 out this section.
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1 (b) OVERHEAD EXPENSES.—For purposes of this

2 section, the term ‘‘overhead expenses’’ means expenses

3 within the following object classifications established by

4 the Director of the Office of Management and Budget:

5 (1) 21.0 (travel and transportation of persons).

6 (2) 22.0 (transportation of things).

7 (3) 23.1 (rental payments to GSA).

8 (4) 23.3 (communications, utilities, and mis9 cellaneous charges).

10 (5) 24.0 (printing and reproduction).

11 (6) 25.1 (consulting services).

12 (7) 25.2 (other services).

13 (8) 25.5 (research and development contracts).

14 (9) 26.0 (supplies and materials).

15 (10) 31 (equipment).

16 SEC. 17005. TERMINATION OF ADVISORY COMMISSION ON

17 INTERGOVERNMENTAL RELATIONS.

18 (a) REPEAL.—The Act entitled ‘‘An Act to establish

19 an Advisory Commission on Intergovernmental Relations’’

20 (42 U.S.C. 4271 et seq.), approved September 24, 1959,

21 which established the Advisory Commission on Intergov22 ernmental Relations, is repealed.

23 (b) SAVINGS PROVISIONS.—

24 (1) CONTINUATION OF AGREEMENTS, GRANTS,

25 CONTRACTS, PRIVILEGES, AND OTHER ADMINISTRA-
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1 TIVE ACTIONS.—All agreements, grants, contracts,

2 privileges, and other administrative actions—

3 (A) which have been issued, made, grant4 ed, or allowed to become effective by the Advi5 sory Commission on Intergovernmental Rela6 tions in the performance of its functions or by

7 a court of competent jurisdiction with respect to

8 those functions, and

9 (B) which are in effect on the date of the

10 enactment of this Act, or were final before that

11 date of enactment and are to become effective

12 on or after that date of enactment,

13 shall continue in effect according to their terms until

14 modified, terminated, superseded, set aside, or re15 voked in accordance with law by the President, any

16 other authorized official, a court of competent juris17 diction, or operation of law.

18 (2) SUITS NOT AFFECTED.—The provisions of

19 this section shall not affect suits commenced before

20 the date of the enactment of this Act, and in all

21 such suits, proceedings shall be had, appeals taken,

22 and judgments rendered in the same manner and

23 with the same effect as if this section had not been

24 enacted.
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1 (3) SUITS INVOLVING COUNCIL OR OFFICE.—

2 No suit, action, or other proceeding commenced by

3 or against the Advisory Commission on Intergovern4 mental Relations, or by or against any individual in

5 the official capacity of such individual as an officer

6 or employee of such commission, shall abate by rea7 son of the enactment of this section.

8 SEC. 17006. ADMINISTRATIVE CONFERENCE OF THE UNIT9 ED STATES.

10 Subchapter V of chapter 5 of title 5, United States

11 Code, is repealed, the Administrative Conference of the

12 United States is terminated, and the officers and employ13 ees of the Conference are terminated.

14 SEC. 17007. TERMINATION OF MISCELLANEOUS ADVISORY

15 COMMITTEES.

16 (a) DEPARTMENT OF AGRICULTURE.—

17 (1) SWINE HEALTH ADVISORY COMMITTEE.—

18 Section 11 of the Swine Health Protection Act (7

19 U.S.C. 3810), which required the Secretary of Agri20 culture to appoint a swine health advisory committee

21 or committees, is repealed.

22 (2) CASCADE HEAD SCENIC-RESEARCH AREA

23 ADVISORY COUNCIL.—Section 8 of the Act of De24 cember 22, 1974 (16 U.S.C. 541g), which required

25 the Secretary of Agriculture to establish a Cascade
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1 Head Scenic-Research Area advisory council, is re2 pealed.

3 (3) GLOBAL CLIMATE CHANGE TECHNICAL AD4 VISORY COMMITTEE.—Section 2404 of the Food, Ag5 riculture, Conservation, and Trade Act of 1990 (7

6 U.S.C. 6703), which required the Secretary of Agri7 culture to establish a technical advisory committee

8 concerning global climate change, is repealed.

9 (4) MONO BASIN NATIONAL FOREST SCENIC

10 AREA ADVISORY BOARD.—Section 306 of the Califor11 nia Wilderness Act of 1984 (16 U.S.C. 543e), which

12 established the Mono Basin National Forest Scenic

13 Area Advisory Board, is repealed.

14 (5) NEZ PERCE NATIONAL HISTORIC TRAIL AD15 VISORY COUNCIL.—Section 5(d) of the National

16 Trails System Act (16 U.S.C. 1244(d)), which re17 quired the Secretary of Agriculture to appoint a Nez

18 Perce National Historic Trail Advisory Council, is

19 amended in the first sentence by striking ‘‘establish20 ment.’’ the first place it appears, and by inserting

21 before the period at the end of the first sentence, as

22 amended, the following: ‘‘and the Advisory Council

23 established for the Nez Perce National Historic

24 Trail shall terminate on the effective date of the Re25 structuring a Limited Government Act’’.
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1 (b) DEPARTMENT OF DEFENSE.—Section 3306 of

2 the National Defense Authorization Act for Fiscal Year

3 1993 (50 U.S.C. 98h–1 note), which authorized the Gov4 ernment-Industry Advisory Committee on the Operation

5 and Modernization of the National Defense Stockpile, is

6 repealed.

7 (c) DEPARTMENT OF ENERGY.—

8 (1) TECHNICAL ADVISORY COMMITTEE ON VER9 IFICATION OF FISSILE MATERIAL AND NUCLEAR

10 WARHEAD CONTROLS.—Section 3151(c) of the Na11 tional Defense Authorization Act for Fiscal Year

12 1991 (Public Law 101–510; 104 Stat. 1839), which

13 authorized the Technical Advisory Committee on

14 Verification of Fissile Material and Nuclear War15 head Controls, is repealed.

16 (2) TECHNICAL PANEL ON MAGNETIC FU17 SION.—Section 7 of the Magnetic Fusion Energy

18 Engineering Act of 1980 (42 U.S.C. 9306), which

19 authorized the Technical Panel on Magnetic Fusion,

20 is repealed.

21 (d) DEPARTMENT OF HEALTH AND HUMAN SERV22 ICES.—

23 (1) ADVISORY COUNCIL ON HAZARDOUS SUB24 STANCES RESEARCH AND TRAINING.—
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1 (A) REPEAL.—Section 311(a)(5) of the

2 Comprehensive Environmental Response, Com3 pensation, and Liability Act of 1980 (42 U.S.C.

4 9660(a)(5)), which authorized the Advisory

5 Council on Hazardous Substances Research and

6 Training, is repealed.

7 (B) CONFORMING AMENDMENT.—Section

8 2702(a) of title 10, United States Code, is

9 amended in the first sentence by striking ‘‘and

10 the advisory council established under section

11 311(a)(5) of CERCLA’’.

12 (2) ADVISORY COUNCIL ON TRAUMA CARE SYS13 TEMS.—Section 601(b) of the Preventative Health

14 Amendments of 1993 (107 Stat. 2238), which

15 sought to terminate the Advisory Council on Trauma

16 Care Systems, is amended by striking ‘‘Section

17 1201’’ and inserting ‘‘Title XII’’.

18 (3) JOB OPPORTUNITIES AND BASIC SKILLS

19 TRAINING PROGRAM ADVISORY PANEL.—Section

20 203(c)(4) of the Family Support Act of 1988 (42

21 U.S.C. 681 note), which authorized the Advisory

22 Panel for the Evaluation of the Job Opportunities

23 and Basic Skills Training (JOBS) Program, is re24 pealed.

25 (4) BOARD OF TEA EXPERTS.—
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1 (A) REPEAL.—Section 4 of the Tea Impor2 tation Act (21 U.S.C. 42), which authorized the

3 Board of Tea Experts, is repealed.

4 (B) CONFORMING AMENDMENTS.—Section

5 3 of the Tea Importation Act (21 U.S.C. 43) is

6 amended in the first sentence by striking ‘‘,

7 upon the recommendation of the said board,’’.

8 (5) DEVICE GOOD MANUFACTURING ADVISORY

9 COMMITTEE.—Section 520(f)(3) of the Federal

10 Food, Drug, and Cosmetic Act (21 U.S.C.

11 360j(f)(3)), which authorized the Device Good Man12 ufacturing Practice Advisory Committee, is repealed.

13 (6) END STAGE RENAL DISEASE DATA ADVI14 SORY COMMITTEE.—The second sentence of section

15 1881(c)(7) of the Social Security Act (42 U.S.C.

16 1395rr(c)(7)), which authorized the End-Stage

17 Renal Disease Data Advisory Committee, is amend18 ed by striking everything after ‘‘purpose of such’’

19 and inserting ‘‘registry and shall determine the ap20 propriate location of the registry.’’.

21 (7) FEDERAL HOSPITAL COUNCIL.—Section

22 641 of the Public Health Service Act (42 U.S.C.

23 291k), which authorized the Federal Hospital Coun24 cil, is repealed.
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1 (8) NATIONAL ARTHRITIS AND MUSCULO2 SKELETAL AND SKIN DISEASES ADVISORY BOARD.—

3 Section 442 of the Public Health Service Act (42

4 U.S.C. 285d–7), which authorized the National Ar5 thritis and Musculoskeletal and Skin Diseases Advi6 sory Board, is repealed.

7 (9) NATIONAL COMMISSION ON ALCOHOLISM

8 AND OTHER ALCOHOL-RELATED PROBLEMS.—Sec9 tion 18 of the Comprehensive Alcohol Abuse and Al10 coholism Prevention, Treatment, and Rehabilitation

11 Act Amendments of 1979 (42 U.S.C. 4541 note),

12 which established the National Commission on Alco13 holism and Other Alcohol-Related Problems, is re14 pealed.

15 (10) NATIONAL DEAFNESS AND OTHER COMMU16 NICATION DISORDERS ADVISORY BOARD.—Section

17 464D of the Public Health Service Act (42 U.S.C.

18 285m–4), which authorized the National Deafness

19 and Other Communication Disorders Advisory

20 Board, is repealed.

21 (11) NATIONAL DIABETES ADVISORY BOARD,

22 NATIONAL DIGESTIVE DISEASES ADVISORY BOARD,

23 AND NATIONAL KIDNEY AND UROLOGIC DISEASES

24 ADVISORY BOARD.—
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1 (A) REPEAL.—Section 430 of the Public

2 Health Service Act (42 U.S.C. 285c–4), which

3 authorized the National Diabetes Advisory

4 Board, the National Digestive Diseases Advi5 sory Board, and the National Kidney and Uro6 logic Diseases Advisory Board, is repealed.

7 (B) CONFORMING AMENDMENTS.—Section

8 429(c) of the Public Health Service Act (42

9 U.S.C. 485c–3(c)) is amended—

10 (i) in paragraph (1) by adding ‘‘and’’

11 after the semicolon;

12 (ii) in paragraph (2) by striking

13 ‘‘and’’ after the semicolon; and

14 (iii) by striking paragraph (3).

15 (12) TASK FORCE ON AGING RESEARCH.—Title

16 III of the Home Health Care and Alzheimer’s Dis17 ease Amendments of 1990 (42 U.S.C. 242q through

18 242q–5), which authorized the Task Force on Aging

19 Research, is repealed.

20 (e) DEPARTMENT OF THE INTERIOR.—

21 (1) CHATTAHOOCHEE RIVER NATIONAL RECRE22 ATION AREA ADVISORY COMMISSION.—Section 106

23 of the Act entitled ‘‘An Act to authorize the estab24 lishment of the Chattahoochee River National Recre25 ation Area in the State of Georgia, and for other
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1 purposes’’ (16 U.S.C. 460ii–5), approved October

2 30, 1984, which established the Chattahoochee River

3 National Recreation Area Advisory Commission, is

4 repealed.

5 (2) GULF ISLANDS NATIONAL SEASHORE ADVI6 SORY COMMISSION.—Section 10 of the Act entitled

7 ‘‘An Act to provide for the establishment of the Gulf

8 Islands National Seashore, in the States of Florida

9 and Mississippi, for the recognition of certain his10 toric values at Fort San Carlos, Fort Redoubt, Fort

11 Barrancas, and Fort Pickens in Florida, and Fort

12 Massachusetts in Mississippi, and for other pur13 poses’’ (16 U.S.C. 459h–9), approved January 8,

14 1971, which established the Gulf Islands National

15 Seashore Advisory Commission, is repealed.

16 (3) JEFFERSON NATIONAL EXPANSION MEMO17 RIAL COMMISSION.—Section 7 of the Act entitled

18 ‘‘An Act to provide for the construction of the Jef19 ferson National Expansion Memorial at the site of

20 Old Saint Louis, Missouri, in general accordance

21 with the plan approved by the United States Terri22 torial Expansion Memorial Commission, and for

23 other purposes’’ (16 U.S.C. 450jj–6), approved Au24 gust 24, 1984, which established the Jefferson Na25 tional Expansion Memorial Commission, is repealed.
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1 (4) POTOMAC HERITAGE NATIONAL SCENIC

2 TRAIL ADVISORY COUNCIL.—The first sentence of

3 section 5(d) of the National Trails System Act (16

4 U.S.C. 1244(d)), as amended by subsection (a)(5) of

5 this Act, which authorized the Potomac Heritage

6 National Scenic Trail Advisory Council, is further

7 amended by striking ‘‘The Secretary’’ and inserting

8 ‘‘Except for the Potomac Heritage National Scenic

9 Trail, the Secretary’’.

10 (f) DEPARTMENT OF JUSTICE.—

11 (1) REPEAL.—Section 5002 of title 18, United

12 States Code, which created the Advisory Corrections

13 Council, is repealed.

14 (2) CONFORMING AMENDMENTS.—Chapter 401

15 of title 18, United States Code, is amended—

16 (A) by redesignating section 5003 as sec17 tion 5002; and

18 (B) in the table of sections at the begin19 ning of the chapter by striking the items related

20 to sections 5002 and 5003 and inserting the

21 following:

‘‘5002. Custody of State offenders.’’.

22 (g) DEPARTMENT OF TRANSPORTATION.—

23 (1) COMMERCIAL MOTOR VEHICLE SAFETY REG24 ULATORY REVIEW PANEL.—
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1 (A) REPEAL.—Section 31134 of title 49,

2 United States Code, which authorized the Com3 mercial Motor Vehicle Safety Regulatory Re4 view Panel, is repealed.

5 (B) CLERICAL AMENDMENT.—The table of

6 sections at the beginning of chapter 311 of title

7 49, United States Code, is amended by striking

8 the item relating to section 31134.

9 (2) NATIONAL DRIVER REGISTER ADVISORY

10 COMMITTEE.—Section 209 of the National Driver

11 Register Act of 1982 (23 U.S.C. 401 note), which

12 established the National Driver Register Advisory

13 Committee, is repealed.

14 (3) NATIONAL HIGHWAY SAFETY ADVISORY

15 COMMITTEE.—Section 404 of title 23, United States

16 Code, which established the National Highway Safe17 ty Advisory Committee, is repealed.

18 (h) SAVINGS PROVISIONS.—

19 (1) CONTINUATION OF AGREEMENTS, GRANTS,

20 CONTRACTS, PRIVILEGES, AND OTHER ADMINISTRA21 TIVE ACTIONS.—All agreements, grants, contracts,

22 privileges, and other administrative actions—

23 (A) which have been issued, made, grant24 ed, or allowed to become effective by an entity

25 terminated pursuant to an amendment or re-
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1 peal made by this section, in the performance of

2 its functions or by a court of competent juris3 diction with respect to those functions, and

4 (B) which are in effect on the date of the

5 enactment of this Act, or were final before that

6 date of enactment and are to become effective

7 on or after that date of enactment,

8 shall continue in effect according to their terms until

9 modified, terminated, superseded, set aside, or re10 voked in accordance with law by the President, any

11 other authorized official, a court of competent juris12 diction, or operation of law.

13 (2) SUITS NOT AFFECTED.—The provisions of

14 this section shall not affect suits commenced before

15 the date of the enactment of this Act, and in all

16 such suits, proceedings shall be had, appeals taken,

17 and judgments rendered in the same manner and

18 with the same effect as if this section had not been

19 enacted.

20 (3) SUITS INVOLVING COUNCIL OR OFFICE.—

21 No suit, action, or other proceeding commenced by

22 or against an entity terminated pursuant to an

23 amendment or repeal made by this section, or by or

24 against any individual in the official capacity of such

25 individual as an officer or employee of such an en-
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1 tity, shall abate by reason of the enactment of this

2 section.

3 SEC. 17008. TERMINATION OF FEDERAL INFORMATION CEN4 TERS.

5 (a) REPEAL.—Section 112 of the Federal Property

6 and Administrative Services Act of 1949 (40 U.S.C. 760),

7 which authorized the establishment of a network of Fed8 eral information centers, is repealed.

9 (b) CLERICAL AMENDMENT.—The table of contents

10 in the first section of the Federal Property and Adminis11 trative Services Act of 1949 (40 U.S.C. 471 et seq.) is

12 amended by striking the item relating to section 112.

13 Subtitle B—Legislative Branch

14 Reductions

15 SEC. 17101. REDUCTION IN OVERHEAD EXPENSES OF EXEC16 UTIVE OFFICE OF THE PRESIDENT.

17 (a) IN GENERAL.—The amount obligated by each of18 fice in the Executive Office of the President during fiscal

19 year 1996 for overhead expenses shall not exceed an

20 amount sufficient to reduce outlays for such expenses dur21 ing such fiscal year (as compared to such outlays during

22 fiscal year 1995) by 25 percent.

23 (b) OVERHEAD EXPENSES.—For purposes of this

24 section, the term ‘‘overhead expenses’’ means expenses
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1 within the following object classifications established by

2 the Director of the Office of Management and Budget:

3 (1) 21.0 (travel and transportation of persons).

4 (2) 22.0 (transportation of things).

5 (3) 23.1 (rental payments to GSA).

6 (4) 23.3 (communications, utilities, and mis7 cellaneous charges).

8 (5) 24.0 (printing and reproduction).

9 (6) 25.1 (consulting services).

10 (7) 25.2 (other services).

11 (8) 25.5 (research and development contracts).

12 (9) 26.0 (supplies and materials).

13 (10) 31 (equipment).

14 SEC. 17102. FORMULA FOR DETERMINING OFFICIAL MAIL

15 ALLOWANCE.

16 (a) IN GENERAL.—Section 311(e)(2)(B)(i) of the

17 Legislative Branch Appropriations Act, 1991 (2 U.S.C.

18 59e(e)(2)(B)(i)) is amended by striking ‘‘3’’ and inserting

19 ‘‘1.5’’.

20 (b) EFFECTIVE DATE.—The amendment made by

21 this section shall apply with respect to sessions of Con22 gress beginning with the first session of the One Hundred

23 Fourth Congress.
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1 SEC. 17103. TRANSFER OF CERTAIN FUNDS PROHIBITED.

2 Section 101(c)(2) of the Legislative Branch Appro3 priations Act, 1993 (2 U.S.C. 95b(c)(2)), is amended by

4 striking ‘‘Official Mail Costs’’,’’.

5 SEC. 17104. TEMPORARY SUSPENSION OF AUTOMATIC PAY

6 ADJUSTMENTS FOR MEMBERS OF CONGRESS.

7 (a) IN GENERAL.—Section 601(a) of the Legislative

8 Reorganization Act of 1946 (2 U.S.C. 31) is amended by

9 adding at the end the following:

10 ‘‘(3) No rate of pay shall be adjusted to reflect any

11 adjustment which, but for this paragraph, would take ef12 fect under paragraph (2) on or after January 1, 1997,

13 and before January 1, 2002.’’.

14 (b) TECHNICAL AMENDMENT.—Paragraph (2)(A) of

15 section 601(a) of such Act is amended by striking ‘‘Sub16 ject to subparagraph (B),’’ and inserting ‘‘Subject to sub17 paragraph (B) and paragraph (3),’’.

18 Subtitle C—Executive Branch

19 Reductions

20 SEC. 17201. REDUCTION IN OVERHEAD EXPENSES OF EXEC21 UTIVE OFFICE OF THE PRESIDENT.

22 (a) IN GENERAL.—The amount obligated by each of23 fice in the Executive Office of the President during fiscal

24 year 1996 for overhead expenses shall not exceed an

25 amount sufficient to reduce outlays for such expenses dur-
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1 ing such fiscal year (as compared to such outlays during

2 fiscal year 1995) by 25 percent.

3 (b) OVERHEAD EXPENSES.—For purposes of this

4 section, the term ‘‘overhead expenses’’ means expenses

5 within the following object classifications established by

6 the Director of the Office of Management and Budget:

7 (1) 21.0 (travel and transportation of persons).

8 (2) 22.0 (transportation of things).

9 (3) 23.1 (rental payments to GSA).

10 (4) 23.3 (communications, utilities, and mis11 cellaneous charges).

12 (5) 24.0 (printing and reproduction).

13 (6) 25.1 (consulting services).

14 (7) 25.2 (other services).

15 (8) 25.5 (research and development contracts).

16 (9) 26.0 (supplies and materials).

17 (10) 31 (equipment).

18 SEC. 17202. SES ANNUAL LEAVE ACCUMULATION.

19 (a) REPEAL.—

20 (1) IN GENERAL.—Section 6304(f) of title 5,

21 United States Code, is repealed, effective as of the

22 last day of the last applicable pay period beginning

23 in the calendar year in which this Act is enacted.

24 (2) CONFORMING AMENDMENT.—Section

25 6304(a) of title 5, United States Code, is amended
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1 by striking ‘‘(e), (f), and (g)’’ and inserting ‘‘(e) and

2 (g)’’, effective as of the date on which the amend3 ment made by paragraph (1) takes effect.

4 (b) SAVINGS PROVISION.—Annual leave in excess of

5 the amount allowable under subsection (a) or (b) of sec6 tion 6304 of title 5, United States Code, which was accu7 mulated under section 6304(f) of such title by an employee

8 who becomes subject to such subsection (a) or (b) as a

9 result of this section shall remain to the credit of the em10 ployee and be subject to reduction in the same manner

11 as provided in section 6304(c) of such title.

12 SEC. 17203. LIMITATION RELATING TO POLITICAL AP13 POINTEES.

14 (a) IN GENERAL.—The average total number of polit15 ical appointees in the executive branch during 1997, and

16 each subsequent calendar year, may not exceed 2,000 (de17 termined on a full-time equivalent basis).

18 (b) BASIS FOR DETERMINING COMPLIANCE.—For

19 purposes of applying the limitation under subsection (a),

20 the average total number of political appointees in the ex21 ecutive branch during any calendar year shall be deter22 mined on the basis of the numbers of such appointees,

23 as set forth in the budget for the United States Govern24 ment submitted by the President to the Congress for the

25 first fiscal year beginning after such calendar year.
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1 (c) RESTRICTION.—Nothing in this section shall be

2 considered to permit or require—

3 (1) the termination of an individual’s appoint4 ment to a position established by law; or

5 (2) that any position referred to in paragraph

6 (1) remain unfilled.

7 (d) DEFINITIONS.—For purposes of this section—

8 (1) the term ‘‘political appointee in the execu9 tive branch’’ means a political appointee serving in

10 or under an Executive agency;

11 (2) the term ‘‘political appointee’’ means—

12 (A) an employee whose appointment is

13 made by and with the advice and consent of the

14 Senate;

15 (B) an employee whose position is excepted

16 from the competitive service by reason of its

17 confidential, policy-determining, policy-making,

18 or policy-advocating character; and

19 (C) a noncareer appointee in the Senior

20 Executive Service (as defined in section

21 3132(b)(7) of title 5, United States Code) or in

22 any other senior executive service;

23 (3) the term ‘‘employee’’ has the meaning given

24 such term by section 2105 of title 5, United States

25 Code;
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1 (4) the term ‘‘competitive service’’ has the

2 meaning given such term by section 2102 of title 5,

3 United States Code; and

4 (5) the term ‘‘Executive agency’’ has the mean5 ing given such term in section 105 of title 5, United

6 States Code, but does not include the General Ac7 counting Office.

8 Subtitle D—Specific Program

9 Reforms

10 SEC. 17301. DECREASE IN PRESIDENTIAL ELECTION CAM11 PAIGN FUND CHECK-OFF.

12 (a) IN GENERAL.—Section 6096(a) of the Internal

13 Revenue Code of 1986 (relating to designation by individ14 uals) is amended—

15 (1) by striking ‘‘$3’’ each place it appears and

16 inserting ‘‘$1’’, and

17 (2) by striking ‘‘$6’’ and inserting ‘‘$2’’.

18 (b) EFFECTIVE DATE.—The amendments made by

19 subsection (a) shall apply with respect to tax returns re20 quired to be filed after December 31, 1995.

21 SEC. 17302. MORATORIUM ON CONSTRUCTION AND ACQUI22 SITION OF NEW FEDERAL BUILDINGS.

23 (a) GENERAL RULE.—After the date of the enact24 ment of this Act and before October 1, 1998, the Adminis25 trator of General Services may not obligate any funds for
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1 construction or acquisition of any public building under

2 the authority of the Public Buildings Act of 1959 or any

3 other provision of law (other than a public building under

4 construction or under contract for acquisition on such date

5 of enactment).

6 (b) PUBLIC BUILDING DEFINED.—In this section,

7 the term ‘‘public building’’ has the meaning such term has

8 under the Public Buildings Act of 1959.

9 SEC. 17303. TERMINATION OF ANNUAL DIRECT ASSISTANCE

10 TO NORTHERN MARIANA ISLANDS.

11 (a) IN GENERAL.—No annual payment may be made

12 under section 701, 702, or 704 of the Covenant to Estab13 lish a Commonwealth of the Northern Mariana Islands in

14 Political Union with the United States of America (48

15 U.S.C. 1681 note), for any fiscal year beginning after Sep16 tember 30, 1995.

17 (b) ELIMINATION OF 7-YEAR EXTENSIONS.—

18 (1) IN GENERAL.—The Act of March 24, 1976

19 (90 Stat. 263; 16 U.S.C. 1681 note) is amended by

20 striking sections 3 and 4.

21 (2) CONFORMING CHANGES.—Section 5 of the

22 Act of March 24, 1976 (90 Stat. 263; 16 U.S.C.

23 1681 note) is amended—

24 (A) by redesignating the section as section

25 3;
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1 (B) by striking ‘‘agreement identified in

2 section 3 of this Act’’ and inserting ‘‘Agreement

3 of the Special Representatives on Future

4 United States Financial Assistance for the Gov5 ernment of the Northern Mariana Islands, exe6 cuted June 10, 1985, between the special rep7 resentative of the President of the United

8 States and the special representatives of the

9 Governor of the Northern Mariana Islands’’;

10 and

11 (C) by striking ‘‘Interior and Insular Af12 fairs’’ and inserting ‘‘Resources’’.

13 SEC. 17304. GOVERNMENT INFORMATION DISSEMINATION

14 AND PRINTING IMPROVEMENT.

15 (a) TRANSFER OF FUNCTIONS.—

16 (1) PUBLIC PRINTER.—The position of Public

17 Printer and all functions of the position of Public

18 Printer (other than functions of the Superintendent

19 of Documents) under title 44, United States Code,

20 or any other provision of law are transferred from

21 the legislative branch of the Government to the exec22 utive branch of the Government.

23 (2) SUPERINTENDENT OF DOCUMENTS.—The

24 position of Superintendent of Documents and all

25 functions of the position of Superintendent of Docu-
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1 ments under title 44, United States Code, or any

2 other provision of law are transferred to the Library

3 of Congress and shall be carried out by the Super4 intendent of Documents under the direction of the

5 Librarian of Congress. The Superintendent of Docu6 ments shall be appointed by, and serve at the pleas7 ure of, the Librarian of Congress.

8 (3) REVOCATION OF CHARTERS.—All printing

9 plant charters authorized under section 501 of title

10 44, United States Code, are revoked.

11 (4) EFFECTIVE DATE.—The transfer under

12 paragraph (1) and the revocation under paragraph

13 (3) shall each take effect 2 years after the date of

14 the enactment of this Act. The transfer under para15 graph (2) shall take effect one year after the date

16 of the enactment of this Act.

17 (b) GOVERNMENT PUBLICATIONS TO BE AVAILABLE

18 THROUGHOUT THE GOVERNMENT.—All Government pub19 lications shall be available throughout the Government to

20 any department, agency, or entity of the Government for

21 use or redissemination.

22 (c) INVENTORY AND FURNISHING OF GOVERNMENT

23 PUBLICATIONS.—Each department, agency, and other en24 tity of the Government shall—
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1 (1) establish and maintain a comprehensive in2 ventory of its Government publications;

3 (2) make such inventory available through the

4 electronic directory under chapter 41 of title 44,

5 United States Code; and

6 (3) in the form and manner prescribed by the

7 Superintendent of Documents, furnish its Govern8 ment publications to the Superintendent of Docu9 ments.

10 (d) ADDITIONAL RESPONSIBILITIES OF THE PUBLIC

11 PRINTER.—

12 (1) IN GENERAL.—The Public Printer shall,

13 with respect to the executive branch of the Govern14 ment and the judicial branch of the Government—

15 (A) use all necessary measures to remedy

16 neglect, delay, duplication, and waste in the

17 public printing and binding of Government pub18 lications, including the reduction and elimi19 nation of internal printing and high-speed du20 plicating capacities of departments, agencies,

21 and entities;

22 (B) prescribe Government publishing

23 standards, which, to the greatest extent prac24 ticable, shall be consistent with the United
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1 States Government Printing Office Style Man2 ual;

3 (C) prescribe Government procurement

4 and manufacturing requirements for printing

5 paper and writing paper, which, to the greatest

6 extent practicable, shall be consistent with Gov7 ernment Paper Specification Standards;

8 (D) authorize the acquisition and transfer

9 of equipment requisitioned by publishing facili10 ties authorized under section 501 of title 44,

11 United States Code;

12 (E) authorize the disposal of such equip13 ment pursuant to section 312 of title 44,

14 United States Code; and

15 (F) establish policy for the acquisition of

16 printing, which, to the greatest extent prac17 ticable, shall be consistent with (i) Printing

18 Procurement Regulation (GPO Publication

19 305.3), (ii) Government Printing and Binding

20 Regulations (JCP No. 26), and (ii) Printing

21 Procurement Department Instruction

22 (PP304.1B).

23 (2) POLICY STANDARDS.—The policy referred

24 to in paragraph (1)(F) shall be formulated to maxi25 mize competitive procurement from the private sec-
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1 tor. Government in-house printing and duplicating

2 operations authorized under section 501 of title 44,

3 United States Code, or otherwise authorized by law,

4 may be used if they provide printing at the lowest

5 cost to the Government, taking into consideration

6 the total expense of production, materials, labor,

7 equipment, and general and administrative expense,

8 including all levels of overhead.

9 (e) ADDITIONAL RESPONSIBILITIES OF THE SUPER10 INTENDENT OF DOCUMENTS.—

11 (1) GOVERNMENT PUBLICATIONS TO BE FUR12 NISHED TO THE SUPERINTENDENT OF DOCU13 MENTS.—If a department, agency, or other entity of

14 the Government publishes a Government publication,

15 the head of the department, agency, or entity shall

16 furnish the Government publication to the Super17 intendent of Documents not later than the date of

18 release of the material to the public.

19 (2) DISSEMINATION OR REPUBLICATION.—In

20 addition to any other dissemination provided for by

21 law, the Superintendent of Documents shall dissemi22 nate or republish Government publications, if, as de23 termined by the Superintendent, the dissemination

24 by the department, agency, or entity of the Govern25 ment is inadequate. The Superintendent shall have
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1 authority to carry out the preceding sentence by ap2 propriate means, including the dissemination and re3 publication of Government publications furnished

4 under paragraph (1), with the cost of dissemination

5 and republication to be borne by the department,

6 agency, or entity involved.

7 (3) COST.—The cost charged to the public by

8 the superintendent of documents under paragraph

9 (2) for any government publication (whether such

10 government publication is made available to the pub11 lic by a department, agency, or entity of the govern12 ment, or by the superintendent of documents) may

13 include the incremental cost of dissemination, but

14 may not include any profit.

15 (f) DEPOSITORY LIBRARIES.—In addition to any

16 other distribution provided for by law, the Superintendent

17 of Documents shall make Government publications avail18 able to designated depository libraries and State libraries.

19 The Superintendent shall have authority to carry out the

20 preceding sentence by appropriate means, including the

21 dissemination and republication of Government publica22 tions furnished under subsection (e)(1), with the cost of

23 dissemination and republication to be borne by the depart24 ment, agency, or entity involved.

25 (g) DEFINITIONS.—As used in this section—
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1 (1) the term ‘‘Government publication’’ means

2 any informational matter that is published at Gov3 ernment expense, or as required by law; and

4 (2) the term ‘‘publish’’ means, with respect to

5 informational matter, make available for dissemina6 tion.

7 SEC. 17305. REPEAL OF TRANSITIONAL APPROPRIATIONS

8 AUTHORIZATION FOR THE POST OFFICE

9 (a) IN GENERAL.—Section 2004 of title 39, United

10 States Code, is repealed.

11 (b) CONFORMING AMENDMENT.—Section 2003(e)(2)

12 of such title is amended by striking out ‘‘sections 2401

13 and 2004’’ both places it appears and inserting in lieu

14 thereof ‘‘section 2401’’.

15 (c) CLERICAL AMENDMENT.—The table of sections

16 at the beginning of chapter 12 of such title is amended

17 by striking out the item relating to section 2004.

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HR 1923 IH——73

HR 1923 IH——74

HR 1923 IH——75

HR 1923 IH——76