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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1923 Introduced in House (IH)]

  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.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS

    (a) Short Title.--This Act may be cited as the ``Restructuring a 
Limited Government Act''.
    (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.
            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.
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.
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.subchapter c--reorganization of department of state relating to 
                functions transferred under this chapter
Sec. 2461. Reorganization plan.
Sec. 2462. Principsubchapter 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.
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.
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.
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.
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.
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.
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 exsubchapter 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 
          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. Resubchapter c--section 235 mortgage refinancingncies.
Sec. 7325. Section 235 mortgage refinancing.
Sec. 7326. Penalty for early redemption of savings bonds.
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

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.
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.
            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. 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.
Sec. 10144. Transfer of administering authority to Office of Economic 
                            Opportunities.
Sec. 10145. Outreach services for certain institutions of higher 
               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. Defisubchapter 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.
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

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 high-income 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

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 high-cost 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.
       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.
       Chapsubchapter a--family nutrition block grant programnts
Sec. 143subchapter b--school-based nutrition block grant program
Sec. 14341. Amendsubchapter 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

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.
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.
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 Non- 
                          Residential 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.
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

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.
SEC. 2. EFFECTIVE DATE.

    Except as otherwise provided, this Act, and the amendments made by 
this Act, shall take effect on October 1, 1995.
                       TITLE I--NATIONAL DEFENSE

                  Subtitle A--Restore Defense Spending

SEC. 1001. CONFORMANCE WITH BOTTOM UP REVIEW.

    It is the intent of Congress that funding within the national 
defense budget function for military readiness programs, quality-of-
life programs, and force modernization programs be increased over the 
level proposed in the most recent future-years defense plan of the 
Department of Defense by $60,000,000,000, of which--
            (1) $37,000,000,000 shall be derived by increasing the 
        total amount for the national defense budget function for 
        fiscal years 1996 through 2000 ($25,000,000,000 of which has 
        already been proposed by the President in defense budget 
        adjustments announced in November 1995); and
            (2) $23,000,000,000 shall be derived as an offset from the 
        reductions in defense programs provided in the other provisions 
        of this title.
  Subtitle B--Rescission of Funding for Programs Not Requested by the 
                         Department of Defense

SEC. 1111. RESCISSION OF FUNDS FOR GENERAL PURPOSE BOMB PROGRAM.

    Of the funds made available to the Department of Defense in 
appropriation Acts for fiscal year 1995 and prior fiscal years, the 
unobligated balance on the date of the enactment of this Act of the 
funds provided for the general purpose bomb program is rescinded.

SEC. 1112. RESCISSION OF FUNDS FOR C-12F AIRCRAFT PROGRAM.

    Of the funds made available to the Department of Defense in 
appropriation Acts for fiscal year 1995 and prior fiscal years, the 
unobligated balance on the date of the enactment of this Act of the 
funds provided for the C-12F aircraft program is rescinded.

SEC. 1113. RESCISSION OF FUNDS FOR P-3 UPGRADE PROGRAM.

    Of the funds made available to the Department of Defense in 
appropriation Acts for fiscal year 1995 and prior fiscal years, the 
unobligated balance on the date of the enactment of this Act of the 
funds provided for the P-3 upgrade program is rescinded.

Subtitle C--Limitations on Funding for Certain Programs for Fiscal Year 
                                  1996

SEC. 1211. ENVIRONMENTAL DEFENSE FUND.

    The amount appropriated for fiscal year 1996 for environmental 
defense programs for the Department of Defense may not exceed 50 
percent of the amount appropriated for such programs for fiscal year 
1995.

SEC. 1212. FORMER SOVIET UNION THREAT REDUCTION.

    The amount appropriated for fiscal year 1996 for the Department of 
Defense for cooperative threat reduction programs with states of the 
former Soviet Union may not exceed 50 percent of the amount 
appropriated for such programs for fiscal year 1995.

        Subtitle D--Department of Defense Administrative Reforms
SEC. 1311. MILITARY SEVERANCE PAY.

    (a) Change in Payment Formula.--Paragraph (1) of section 1174 of 
title 10, United States Code, is amended--
            (1) by striking out paragraph (1) of subsection (d) and 
        inserting in lieu thereof the following:
            ``(1) the product of (A) the member's years of active 
        service, and (B) the amount equal to 12 times the member's 
        basic military compensation at the time of the member's 
        discharge or release from active duty, divided by 52; or''; and
            (2) by adding at the end the following new subsection:
    ``(j) Basic Military Compensation.--In this section, the term 
`basic military compensation' means the sum of the following elements 
of compensation for a member of the uniformed services:
            ``(1) Monthly basic pay payable to the member based upon 
        the member's pay grade and years of service.
            ``(2) Monthly basic allowance for quarters applicable to 
        the member's pay grade and dependent status.
            ``(3) Monthly basic allowance for subsistence applicable to 
        the member's pay grade and dependent status.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to persons who become entitled to separation pay 
under section 1174 of title 10, United States Code, on or after the 
date of the enactment of this Act.
SEC. 1312. RESTRICTION ON ELIGIBILITY FOR AVIATION CAREER INCENTIVE 
              PAY.

    (a) Elimination of Continuous Monthly Incentive Pay.--Section 301a 
of title 37, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking paragraphs (3), (4), and (5); and
                    (B) by redesignating paragraph (6) as paragraph 
                (3); and
            (2) by striking subsection (f).
    (b) Application of Amendments.--The amendments made by this section 
shall apply beginning with the first day of the first month after the 
date of the enactment of this Act.

SEC. 1313. CANCELLATION OF LEARNING RESOURCE CENTER PROGRAM.

    Effective October 1, 1995, the Secretary of Defense shall cancel 
the learning resource center program of the Department of Defense 
relating to federally funded training for military personnel and 
civilian employees of the Department.

           Subtitle E--Department of Defense Program Reforms

SEC. 1411. INTELLIGENCE COMMUNITY REORGANIZATION AND PERSONNEL 
              REDUCTION.

    (a) Intelligence Community Reorganization.--The President shall 
reorganize the United States Intelligence Community to reduce 
redundancy and overlapping jurisdiction of intelligence components and 
to centralize (to the extent determined appropriate by the President) 
responsibility and authority for intelligence activities.
    (b) Personnel Reductions.--(1) In implementing the reorganization 
required by subsection (a), the President shall, for each of fiscal 
years 1996 through 2000, reduce the total number of military and 
civilian personnel employed by, or assigned or detailed to, elements of 
the Intelligence Community by not less than 4 percent of the baseline 
number specified in paragraph (2). The President shall direct how such 
reductions are to be allocated among the elements of the Intelligence 
Community.
    (2) For purposes of paragraph (1), the baseline number is the total 
number of military and civilian personnel employed by, or assigned or 
detailed to, elements of the Intelligence Community as of September 30, 
1995.
    (3) Reductions in personnel carried out pursuant to this subsection 
for any fiscal year may also be counted for that fiscal year for 
purposes of section 907(b) of Public Law 101-510 (104 Stat. 1622).
    (4) Functions and personnel may not be reassigned in order to 
avoid, or reduce the effect of, the reductions required by this 
subsection. Reductions pursuant to this section in the number of 
members of the Armed Forces, or the number of civilian personnel, in 
the Intelligence Community shall be matched with corresponding 
reductions in the overall number of members of the Armed Forces or of 
civilian employees of the Government, as the case may be.
    (c) Intelligence Community Defined.--For purposes of this section, 
the Intelligence Community consists of those agencies (and elements of 
agencies) performing intelligence and intelligence-related activities 
for which funds were authorized to be appropriated in Public Law 103-
359.

SEC. 1412. LIMITATION ON PROCUREMENT OF SEAWOLF SUBMARINE PROGRAM.

    The Secretary of the Navy may not procure more than one Seawolf 
(SSN-21) attack submarine. Any funds appropriated before the date of 
the enactment of this Act and available for procurement of a second or 
third Seawolf submarine shall be available only for required contract 
termination costs (if any).
SEC. 1413. REQUIRED DISPOSAL OF EXCESS AND OBSOLETE MATERIALS IN 
              NATIONAL DEFENSE STOCKPILE.
    (a) Disposal Required.--Except as provided in subsection (b), in 
order to reduce the quantities of materials in the National Defense 
Stockpile that are obsolete for military purposes or in excess supply 
in the stockpile, the President shall dispose of materials in the 
stockpile 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       ST..........................       50,904
 Grain.                                                                 
Aluminum Oxide, Abrasive       ST..........................          118
 Grain, NSG.                                                            
Aluminum Oxide, Fused Crude..  ST..........................      249,867
Analgesics...................  amaLB.......................       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  LDT.........................   17,757,337
 & Surinam.                                                             
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.      SDT.........................    1,551,262
 Grade Ore.                                                             
Chromite, Chem. & Met. Grade   SDT.........................      217,441
 Ore, NSG.                                                              
Chromite, Refractory Grade     SDT.........................      232,414
 Ore.                                                                   
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,    KT..........................       12,737
 Small.                                                                 
Fluorspar, Acid Grade........  SDT.........................      892,856
Fluorspar, Acid Grade, NSG...  SDT.........................          899
Fluorspar, Metallurgical       SDT.........................      100,822
 Grade, NSG.                                                            
Germanium....................  KG..........................          715
Graphite, Natural, Ceylon,     ST..........................           53
 Amorphous Lump, NSG.                                                   
Graphite, Natural, Malagasy,   ST..........................       17,217
 Crystalline.                                                           
Graphite, Natural, Malagasy,   ST..........................            9
 Crystalline, NSG.                                                      
Graphite, Natural, Other than  ST..........................        1,933
 Ceylon & Malagasy.                                                     
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.    SDT.........................    1,853,453
 Grades.                                                                
Manganese Ore, Chem. & Met.    SDT.........................      882,969
 Grades, NSG.                                                           
Manganese, Battery Grade,      SDT.........................      169,511
 Natural Ore.                                                           
Manganese, Battery Grade,      SDT.........................       19,425
 Natural Ore, NSG.                                                      
Manganese, Battery Grade,      SDT.........................        3,011
 Synthetic Dioxide.                                                     
Manganese, Ferro.............  ST..........................      786,228
Manganese, Metal,              ST..........................       14,172
 Electrolytic.                                                          
Mercury......................  FL..........................      156,853
Mercury, NSG.................  FL..........................            3
Mica, Muscovite Film, 1st &    LB..........................    1,155,698
 2nd Qualities.                                                         
Mica, Muscovite Film, 1st &    LB..........................          640
 2nd Qualities, NSG.                                                    
Mica, Muscovite Splittings...  LB..........................   14,355,260
Mica, Muscovite, Block,        LB..........................    4,699,701
 Stained & Better.                                                      
Mica, Muscovite, Block,        LB..........................      206,730
 Stained & Better, NSG.                                                 
Mica, Phlogopite Block, NSG..  LB..........................      114,027
Mica, Phlogopite Splittings..  LB..........................    1,486,596
Nickel.......................  ST..........................       37,214
Platinum Group Metals,         Tr Oz.......................       15,136
 Iridium.                                                               
Platinum Group Metals,         Tr Oz.......................    1,262,387
 Palladium.                                                             
Platinum Group Metals,         Tr Oz.......................        2,214
 Palladium, NSG.                                                        
Platinum Group Metals,         Tr Oz.......................      199,247
 Platinum.                                                              
Platinum Group Metals,         Tr Oz.......................       13,043
 Platinum, NSG.                                                         
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
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
------------------------------------------------------------------------

    (b) Exception to Disposal Requirements.--Subsection (a) shall not 
apply with respect to the disposal of a material set forth in the table 
in that subsection if the President determines after the date of the 
enactment of this Act that the material is once again needed for the 
stockpile.
    (c) Special Rule for Silver.--The disposal of silver under 
subsection (a) may only occur in the form of coins.
    (d) Ten-Year Period for Disposal.--The President shall complete the 
disposals of materials required by subsection (a) not later than 
September 30, 2005.
    (e) Existing Disposal Procedures.--The disposal of materials under 
subsection (a) shall be carried out in the manner provided in section 6 
of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 
98e(b)), including the requirement to avoid undue disruption of the 
usual markets of producers, processors, and consumers of such 
materials.
    (f) Use of Barter Authorized.--The President is authorized to enter 
into barter arrangements to dispose of materials required to be 
disposed of under subsection (a) in order to acquire strategic and 
critical materials required for the stockpile or to upgrade other 
strategic and critical materials in the stockpile.
    (g) Deposit of Proceeds from Sales.--All moneys received from the 
sale of materials required to be disposed of under subsection (a) shall 
be deposited in the general fund of the Treasury for the purpose of 
reducing the Federal budget deficit.
    (h) Effect on Previous Disposal Authorities.--All authorities of 
the President or the National Defense Stockpile Manager in effect on 
the day before the date of the enactment of this Act regarding the 
disposal of specific quantities of materials in the stockpile are 
hereby terminated. The following provisions of law are hereby repealed:
            (1) Section 3301(a) of the National Defense Authorization 
        Act for Fiscal Year 1994 (Public Law 103-160; 50 U.S.C. 98d 
        note).
            (2) Section 3302(a) of the National Defense Authorization 
        Act for Fiscal Year 1993 (Public Law 102-484; 50 U.S.C. 98d 
        note).
            (3) Section 3301 of the National Defense Authorization Act 
        for Fiscal Years 1992 and 1993 (Public Law 102-190; 50 U.S.C. 
        98d note).
    (i) Definitions.--For purposes of this section:
            (1) The terms ``National Defense Stockpile'' and 
        ``stockpile'' mean the stockpile provided for in section 4 of 
        the Strategic and Critical Materials Stock Piling Act (50 
        U.S.C. 98c).
            (2) The term ``NSG'', with regard to a material specified 
        in the table in subsection (a), means non-specification grade 
        material.
                    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.

    Section 6 of the Export-Import Bank Act of 1945 (12 U.S.C. 635e) is 
amended by adding at the end the following:
    ``(c) Limitations on Authorization of Appropriations.--For all 
costs authorized to be incurred under this Act, there are authorized to 
be appropriated not to exceed $415,000,000 for each of fiscal years 
1996 through 2000.''.

SEC. 2002. TERMINATION OF CAPITAL CONTRIBUTIONS TO CERTAIN MULTILATERAL 
              DEVELOPMENT INSTITUTIONS.

    Notwithstanding any other provision of law, funds of the United 
States shall not be provided, directly or indirectly, to the 
International Bank for Reconstruction and Development, the Asian 
Development Bank, the African Development Bank, the International 
Finance Corporation, the European Bank for Reconstruction and 
Development, the Inter-American Development Bank, or the African 
Development Fund.
SEC. 2003. DEOBLIGATION OF CERTAIN UNEXPENDED FOREIGN ECONOMIC 
              ASSISTANCE FUNDS.

    (a) Requirement To Deobligate.--Except as provided in subsection 
(b) and in the second and third sentences of section 617 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2367), at the beginning of each 
fiscal year the President shall deobligate, and return to the Treasury, 
any foreign economic assistance funds that, as of the end of the 
preceding fiscal year, have been obligated for a period of more than 3 
years but have not been expended.
    (b) Exceptions.--The President, on a case-by-case basis, may waive 
the requirement of subsection (a) if the President determines, and 
reports to the appropriate congressional committees, that--
            (1) the funds are being used for a construction project 
        that requires more than 3 years to complete; or
            (2) the funds have not been expended because of unforeseen 
        circumstances, and those circumstances could not have been 
        reasonably foreseen.
    (c) Comments by AID Inspector General on Waivers.--As soon as 
possible after submission of a report pursuant to subsection (b), the 
Inspector General of the United States Agency for International 
Development shall submit to the appropriate congressional committees 
such comments as the Inspector General considers appropriate with 
regard to the determination described in that report.
    (d) Definitions.--For purposes of this section, the following 
definitions apply:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Foreign Affairs and the Committee on Appropriations of the 
        House of Representatives and the Committee on Foreign Relations 
        and the Committee on Appropriations of the Senate.
            (2) Economic assistance.--The term ``economic assistance'' 
        means--
                    (A) assistance under chapter 1 of part I of the 
                Foreign Assistance Act of 1961 (relating to development 
                assistance) (22 U.S.C. 2151 et seq.), chapter 10 of 
                part I of that Act (relating to the Development Fund 
                for Africa) (22 U.S.C. 2293 et seq.), chapter 11 of 
                part I of that Act (relating to assistance for the 
                independent states of the former Soviet Union) (22 
                U.S.C. 2295 et seq.), or chapter 4 of part II of that 
                Act (relating to the economic support fund) (22 U.S.C. 
                2346 et seq.);
                    (B) assistance under the ``Multilateral Assistance 
                Initiative for the Philippines''; and
                    (C) assistance under the Support for East European 
                Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.).
SEC. 2004. REDUCTION IN CONTRIBUTION TO INTERNATIONAL DEVELOPMENT 
              ASSOCIATION.

    For each of the fiscal years 1996 through 2000, outlays under the 
``International Development Association'' account under the 
International Development Association Act (22 U.S.C. 284 et seq.) for 
United States contributions to the International Development 
Association may not exceed $975,000,000.
SEC. 2005. REDUCTION OF ECONOMIC SUPPORT FUND ASSISTANCE.

    For fiscal years 1996 through 2000, outlays under the ``Economic 
Support Fund'' account under chapter 4 of part II of the Foreign 
Assistance Act of 1961 may not exceed the following amounts:
            (1) Fiscal year 1996.--For fiscal year 1996, outlays shall 
        be at least 10 percent less than outlays for fiscal year 1995.
            (2) Fiscal year 1997.--For fiscal year 1997, outlays shall 
        be at least 20 percent less than outlays for fiscal year 1995.
            (3) Fiscal year 1998.--For fiscal year 1998, outlays shall 
        be at least 30 percent less than outlays for fiscal year 1995.
            (4) Fiscal year 1999.--For fiscal year 1999, outlays shall 
        be at least 40 percent less than outlays for fiscal year 1995.
            (5) Fiscal year 2000.--For fiscal year 2000, outlays shall 
        be at least 50 percent less than outlays for fiscal year 1995.
SEC. 2006. REDUCTION OF BILATERAL DEVELOPMENT ASSISTANCE.

    For each of the fiscal years 1996 through 2000, outlays under the 
following provisions of law may not exceed the following amounts:
            (1) Development assistance fund.--Outlays under sections 
        103 through 106 of the Foreign Assistance Act of 1961 may not 
        exceed $426,000,000.
            (2) Population, development assistance.--Outlays under 
        section 104(b) of such Act may not exceed $225,000,000.
            (3) Development fund for africa.--Outlays under chapter 10 
        of part I of such Act may not exceed $401,000,000.
SEC. 2007. LIMITATION ON UNITED STATES CONTRIBUTIONS TO THE UNITED 
              NATIONS.

    Notwithstanding any other provision of law, the aggregate amount of 
assessed and voluntary contributions by the United States to the United 
Nations and its affiliated agencies for any calendar year after 1996 
shall not exceed an amount which bears the same ratio to the total 
budget of the United Nations and its affiliated agencies as the total 
population of the United States bears to the total population of all 
the member states of the United Nations.

            Subtitle B--Reduce Foreign Aid Direct Assistance

SEC. 2101. REDUCTION IN ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC 
              STATES.

    For each of the fiscal years 1996 through 2000, outlays under the 
``Assistance for Eastern Europe and the Baltic States'' account under 
the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and the 
Support for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5401 
et seq.) for economic assistance and related programs for Eastern 
Europe and the Baltic States may not exceed $359,000,000.
SEC. 2102. PROHIBITION ON FOREIGN ASSISTANCE TO RUSSIA.

    (a) Prohibition.--
            (1) In general.--Foreign assistance may not be obligated or 
        expended for Russia for any fiscal year unless the President 
        certifies to the Congress for such fiscal year the following:
                    (A) The President has received satisfactory 
                assurances from the Government of Russia, which have 
                been confirmed by the Director of the Federal Bureau of 
                Investigation, that the intelligence activities of 
                Russia in the United States are confined to what is 
                considered routine, non-adversarial information 
                gathering activities.
                    (B) Russia has begun, and is making continual 
                progress toward, the unconditional implementation of 
                the Russian-Moldovan troop withdrawal agreement, signed 
                by the prime ministers of Russia and Moldova on October 
                21, 1994.
                    (C) Russia is not providing military assistance to 
                any military forces in the Transdniestra region of 
                Moldova.
                    (D) Russian troops in the Kaliningrad region of 
                Russia are respecting the sovereign territory of 
                Lithuania and other neighboring countries and such 
                troops are not offensively postured against any other 
                country.
                    (E) The activities of Russia in the other 
                independent states of the former Soviet Union do not 
                represent an attempt by Russia to violate or otherwise 
                diminish the sovereignty and independence of such 
                states.
                    (F) Russia is not providing military assistance to 
                any Bosnian Serb military units or combatants or to the 
                Government of the Federal Republic of Yugoslavia.
                    (G) The Government of Russia has ceased the 
                unilateral demarcation of the border between Russia and 
                Estonia begun in 1994, is engaged in dialogue with the 
                Government of Estonia to resolve this border dispute, 
                and has demonstrated a willingness to submit this issue 
                to international arbitration.
                    (H) Russia is not providing any intelligence 
                information to Cuba and is not providing any assistance 
                to Cuba with respect to the signal intelligence 
                facility at Lourdes.
                    (I)(i) Russia is not providing to the countries 
                described in clause (ii) goods or technology, including 
                conventional weapons, which could materially contribute 
                to the acquisition by these countries of chemical, 
                biological, nuclear, or destabilizing numbers and types 
                of advanced conventional weapons.
                    (ii) The countries described in this subparagraph 
                are Iran, Iraq, Syria, or any country, the government 
                of which the Secretary of State has determined, for 
                purposes of section 6(j)(1) of the Export 
                Administration Act of 1979 (50 U.S.C. app. 
                2405(6)(j)(1)), has repeatedly provided support for 
                acts of international terrorism.
                    (J) Russia is in compliance with the Convention on 
                the Prohibition of the Development, Production and 
                Stockpiling of Bacteriological (Biological) and Toxin 
                Weapons and on Their Destruction, signed at Washington, 
                London, and Moscow on April 10, 1972 (TIAS 8062).
                    (K) Russia is in compliance with the 1989 Wyoming 
                Memorandum of Understanding relating to the restriction 
                of chemical weapons.
                    (L) The Government of Russia is committed to 
                reforming the Russian economy along free-market lines, 
                and is taking concrete steps in this direction.
            (2) Certifications for fiscal years 1995 and 1996.--In 
        addition to the requirements contained in paragraph (1), with 
        respect to each of the fiscal years 1995 and 1996, foreign 
        assistance may not be obligated or expended for Russia unless 
        the President certifies to the Congress for each such fiscal 
        year that the Government of Russia--
                    (A) has ceased its military offensive in Chechnya 
                and is committed to resolving the problem of the status 
                of Chechnya through negotiations; and
                    (B) has provided the President with a full and 
                accurate accounting of the espionage activities 
                relating to the case of Aldrich Hazen Ames of the 
                Central Intelligence Agency and has reimbursed the 
                United States Government for all amounts paid by Russia 
                to Rosario Ames since her arrest in 1994.
            (3) Report.--The President shall submit to the Congress for 
        each fiscal year a report containing the certifications 
        required by paragraph (1), and with respect to each of the 
        fiscal years 1995 and 1996, paragraphs (1) and (2). Such report 
        shall be submitted in unclassified and classified versions.
    (b) Annual Reports.--At the beginning of each fiscal year, the 
President and the Comptroller General of the United States shall each 
submit to the Congress a report containing the following:
            (1) The amount of foreign assistance provided to Russia for 
        the preceding fiscal year, including--
                    (A) the name of each organization or entity to 
                which such assistance was provided;
                    (B) the purpose of such assistance; and
                    (C) an assessment of the effectiveness of such 
                assistance.
            (2) A detailed accounting of the amount of foreign 
        assistance appropriated for Russia which has not been expended 
        and the status of such assistance.
            (3) An estimate of the total amount of capital exported 
        from Russia during the previous fiscal year and an analysis of 
        the reasons for the export of such capital.
    (c) Requirement To Oppose Assistance to Russia From International 
Financial Institutions.--The President shall instruct the United States 
executive director of each international financial institution to use 
the voice and vote of the United States to oppose any assistance from 
that financial institution to Russia unless Russia is in compliance 
with the requirements contained in subsection (a).
    (d) Definitions.--For purposes of this section:
            (1) Foreign assistance.--The term ``foreign assistance'' 
        means assistance under the Foreign Assistance Act of 1961 (22 
        U.S.C. 2151 et seq.) or the Freedom for Russia and Emerging 
        Eurasian Democracies and Open Markets Support Act of 1992 (22 
        U.S.C. 5801 et seq.), except that such term does not include--
                    (A) humanitarian assistance;
                    (B) educational and cultural exchanges between the 
                United States and Russia;
                    (C) assistance provided by the National Endowment 
                for Democracy; and
                    (D) assistance for the purpose of destroying 
                nuclear weapons, chemical weapons, and other weapons, 
                and related assistance.
            (2) Goods or technology.--The term ``goods or technology'' 
        has the meaning given such term in section 1608(3) of the Iran-
        Iraq Arms Non-Proliferation Act of 1992 (50 U.S.C. 1701 note).
            (3) International financial institution.--The term 
        ``international financial institution'' means the European Bank 
        for Reconstruction and Development, the International Bank for 
        Reconstruction and Development, the International Development 
        Association, the International Financial Corporation, or the 
        International Monetary Fund.
            (4) Other independent states of the former soviet union.--
        The term ``other independent states of the former Soviet 
        Union'' means the following: Armenia, Azerbaijan, Belarus, 
        Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, 
        Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
    (e) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), this 
        section shall apply only with respect to fiscal years beginning 
        on or after the date of the enactment of this Act.
            (2) Exceptions.--In the case of the fiscal year in which 
        this Act is enacted--
                    (A) the prohibition contained in paragraphs (1) and 
                (2) of subsection (a) shall apply with respect to the 
                obligation or expenditure of foreign assistance on or 
                after the date of the enactment of this Act (including 
                foreign assistance which has been obligated but not 
                expended before the date of the enactment of this Act); 
                and
                    (B) the requirement contained in subsection (c) 
                shall apply with respect to the provision of assistance 
                by an international financial institution on or after 
                the date of the enactment of this Act.

          Subtitle C--Reduce Humanitarian Assistance Programs

SEC. 2201. AUTHORIZATION OF APPROPRIATIONS FOR EDUCATIONAL AND CULTURAL 
              EXCHANGE PROGRAMS.

    Notwithstanding any other provision of law, there are authorized to 
be appropriated for ``International Educational and Cultural Exchange 
Programs'' $202,166,000 for fiscal year 1996 and $158,363,000 for each 
of the fiscal years 1997, 1998, 1999, and 2000.
SEC. 2202. PEACE CORPS FUNDING.

    Not more than $219,745,000 may be made available to carry out the 
Peace Corps Act for each of fiscal years 1996, 1997, 1998, 1999, and 
2000.
SEC. 2203. ASSISTANCE FOR THE MIDDLE EAST.

    (a) Assistance for Israel.--
            (1) Economic support fund.--Of the amounts made available 
        for each of the fiscal years 1996 through 2000 for assistance 
        under chapter 4 of part II of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2346 et seq.) (relating to the economic support 
        fund), not less than $1,200,000,000 shall be available only for 
        Israel.
            (2) Foreign military financing.--Of the amounts made 
        available for each of the fiscal years 1996 through 2000 for 
        assistance under the ``Foreign Military Financing Program'' 
        account under section 23 of the Arms Export Control Act (22 
        U.S.C. 2763), not less than $1,800,000,000 shall be available 
        only for Israel.
    (b) Assistance for Egypt.--
            (1) Economic support fund.--Of the amounts made available 
        for each of the fiscal years 1996 through 2000 for assistance 
        under chapter 4 of part II of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2346 et seq.) (relating to the economic support 
        fund), not less than $817,000,000 shall be available only for 
        Egypt.
            (2) Foreign military financing.--Of the amounts made 
        available for each of the fiscal years 1996 through 2000 for 
        assistance under the ``Foreign Military Financing Program'' 
        account under section 23 of the Arms Export Control Act (22 
        U.S.C. 2763), not less than $1,300,000,000 shall be available 
        only for Egypt.

SEC. 2204. ELIMINATION OF PUBLIC LAW 480 TITLE I AND TITLE III 
              PROGRAMS.

    (a) Congressional Sales Program.--Title I of the Agricultural Trade 
Development Assistance Act of 1954 (7 U.S.C. 1701-1705) is repealed.
    (b) Food for Development Program.--Title III of that Act (7 U.S.C. 
1727-1727e) is repealed.
    (c) Conforming Amendments.--That Act is further amended as follows:
            (1) In section 2 by striking paragraphs (3) and (4), by 
        inserting ``and'' at the end of paragraph (2), and by 
        redesignating paragraph (5) as paragraph (3).
            (2) In section 401--
                    (A) in subsection (e)(2) by striking ``section 303 
                or''; and
                    (B) by repealing subsection (f).
            (3) In section 403--
                    (A) in subsection (b) by striking ``Secretary or 
                the Administrator, as appropriate,'' and inserting 
                ``Administrator'';
                    (B) in subsection (c)--
                            (i) by striking ``Secretary or the 
                        Administrator, as appropriate,'' and inserting 
                        ``Administrator''; and
                            (ii) by striking ``or purchased'';
                    (C) in subsection (d) by striking all that follows 
                ``recipient countries'' and inserting a period;
                    (D) in subsection (e) by striking ``sales or'';
                    (E) in subsection (g) by striking ``Secretary or 
                the Administrator, as appropriate,'' and inserting 
                ``Administrator'';
                    (F) in subsection (h) by striking ``Secretary or'';
                    (G) in subsection (i) by striking ``Secretary or 
                the Administrator, as appropriate,'' each place it 
                appears and inserting ``Administrator''; and
                    (H) in subsection (j)(1)--
                            (i) by striking ``Secretary or the 
                        Administrator, as appropriate,'' and inserting 
                        ``Administrator''; and
                            (ii) by striking ``, or to finance the sale 
                        of agricultural commodities,''.
            (4) In section 404--
                    (A) by repealing subsection (a) and redesignating 
                subsections (b) through (d) as subsections (a) through 
                (c), respectively;
                    (B) in subsection (a), as so redesignated, by 
                striking paragraphs (2) and (3) and redesignating 
                paragraphs (4) and (5) as paragraphs (2) and (3), 
                respectively;
                    (C) by striking ``Secretary or the'' each place it 
                appears; and
                    (D) by striking ``, as appropriate,'' each place it 
                appears.
            (5) By repealing section 405.
            (6) In section 407--
                    (A) by repealing subsection (a);
                    (B) by repealing subsection (b);
                    (C) in subsection (c)--
                            (i) by striking ``(c) Agents.--'' and all 
                        that follows through ``interest.--'' in 
                        paragraph (4) and inserting ``(a) Avoidance of 
                        Conflict of Interest.--'', and moving the 
                        remaining text 2 ems to the left; and
                            (ii) by striking ``this paragraph'' and 
                        inserting ``this subsection'';
                    (D) in subsection (d)--
                            (i) by striking ``(d) Title II and III'' 
                        and inserting ``(b) Title II'';
                            (ii) in paragraph (1) by striking ``and 
                        title III''; and
                            (iii) in paragraphs (2) and (3) by striking 
                        ``titles II and III'' and inserting ``title 
                        II'';
                    (E) in subsection (e)--
                            (i) by striking ``(e)'' and inserting 
                        ``(c)''; and
                            (ii) by striking ``Secretary or the 
                        Administrator, as appropriate,'' and inserting 
                        ``Administrator''; and
                    (F) by repealing subsection (f) and redesignating 
                subsections (g) and (h) as subsections (d) and (e), 
                respectively;
            (7) In section 408 by striking ``finance sales or to 
        provide other'' and inserting ``provide''.
            (8) By repealing section 410.
            (9) In section 411 by repealing subsection (d) and 
        redesignating subsection (e) as subsection (d).
            (10) In section 412--
                    (A) in subsection (a) by striking ``out--'' and all 
                that follows through ``including'' and inserting ``out 
                the emergency and private assistance program under 
                title II, including''; and
                    (B) by repealing subsections (b) and (c) and by 
                redesignating subsections (d) and (e) as subsections 
                (b) and (c), respectively.
    (d) Transition Rule.--Provisions of law repealed by this subsection 
shall continue to apply with respect to agreements entered into under 
title I or III of the Agricultural Trade Development and Assistance Act 
of 1954 before the effective date of this section.
    (e) Effective Date.--This section takes effect on October 1, 1995.
SEC. 2205. ABOLITION OF FOREIGN CLAIMS SETTLEMENT COMMISSION.

    (a) Abolition.--The Foreign Claims Settlement Commission of the 
United States is abolished.
    (b) Transfer of Functions.--All functions of the Foreign Claims 
Settlement Commission are transferred to the Secretary of State.
    (c) Other Transfers.--Except as otherwise provided in this section, 
the assets, liabilities, contracts, property, and records employed, 
held, used, arising from, available to, or to be made available in 
connection with the functions transferred by this section, shall be 
transferred to the Secretary of State for appropriate allocation. Any 
unexpended balance of appropriations or other funds available to the 
Foreign Claims Settlement Commission before the effective date of this 
section shall be deposited into the Treasury.
    (d) Termination of Positions.--Each position in the Foreign Claims 
Settlement Commission shall terminate.
    (e) Incidental Transfers.--The Director of the Office of Management 
and Budget shall provide for the termination of the affairs of the 
Foreign Claims Settlement Commission and for such further measures and 
dispositions as may be necessary to effectuate the purposes of this 
section.
    (f) Savings Provisions.--
            (1) Continuity of legal force and effect.--All orders, 
        determinations, rules, regulations, permits, grants, contracts, 
        certificates, licenses, and privileges--
                    (A) which have been issued, made, granted, or 
                allowed to become effective by the Foreign Claims 
                Settlement Commission or official thereof, or by a 
                court of competent jurisdiction, in the performance of 
                functions which are transferred under this section to 
                the Secretary of State, and
                    (B) which are in effect at the time this section 
                takes effect,
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked by the 
        Secretary of State, or other authorized official, a court of 
        competent jurisdiction, or by operation of law.
            (2) Pending proceedings.--(A) The provisions of this 
        section shall not affect any proceedings, including notices of 
        proposed rulemaking, pending on the effective date of this 
        section before the Foreign Claims Settlement Commission. Such 
        proceedings shall be continued.
            (B) Orders shall be issued in such proceedings, appeals 
        shall be taken therefrom, and payments shall be made pursuant 
        to such orders, as if this section had not been enacted. Orders 
        issued in any such proceedings shall continue in effect until 
        modified, terminated, superseded, or revoked by the Secretary 
        of State, by a court of competent jurisdiction, or by operation 
        of law.
            (C) Nothing in this paragraph shall be deemed to prohibit 
        the discontinuance or modification of any such proceeding under 
        the same terms and conditions and to the same extent that such 
        proceeding could have been discontinued or modified if this 
        section had not been enacted.
            (D) The Secretary of State is authorized to promulgate 
        regulations providing for the orderly transfer to the 
        Department of State of proceedings continued under this 
        paragraph.
            (3) No effect on judicial proceedings.--Except as provided 
        in paragraph (5)--
                    (A) the provisions of this section shall not affect 
                suits commenced before the effective date of this 
                section, and
                    (B) in all such suits, proceedings shall be had, 
                appeals taken, and judgments rendered in the same 
                manner and effect as if this section had not been 
                enacted.
            (4) Nonabatement of proceedings.--No suit, action, or other 
        proceeding commenced by or against any officer in the official 
        capacity of such individual as an officer of the Foreign Claims 
        Settlement Commission shall abate by reason of the enactment of 
        this section. No cause of action by or against the Foreign 
        Claims Settlement Commission or by or against any officer 
        thereof in the official capacity of such officer shall abate by 
        reason of the enactment of this section.
            (5) Continuation of proceeding with substitution of 
        parties.--If, before the date on which this section takes 
        effect, the Foreign Claims Settlement Commission, or officer 
        thereof in the official capacity of such officer, is a party to 
        a suit, then such suit shall be continued with the Secretary of 
        State or other appropriate official of the Department of State 
        substituted or added as a party.
            (6) Reviewability of orders and actions under transferred 
        functions.--Orders and actions of the Secretary of State in the 
        exercise of functions transferred under this section shall be 
        subject to judicial review to the same extent and in the same 
        manner as if such orders and actions had been by the Foreign 
        Claims Settlement Commission exercising such functions 
        immediately preceding their transfer. Any statutory 
        requirements relating to notice, hearings, action upon the 
        record, or administrative review that apply to any function of 
        the Foreign Claims Settlement Commission shall apply to the 
        exercise of such function by the Secretary of State.
    (g) Reference.--
            (1) Functions.--With respect to any function of the Foreign 
        Claims Settlement Commission that is transferred by this 
        section and exercised on or after the effective date of this 
        section, reference in any other Federal law to the Foreign 
        Claims Settlement Commission or any officer or employee thereof 
        shall be deemed to refer to the Secretary of State.
            (2) Other references.--Any reference to the Foreign Claims 
        Settlement Commission, or any other official of the Foreign 
        Claims Settlement Commission, in any law, rule, regulation, 
        certificate, directive, instruction, or other official paper in 
        force on the effective date of this section shall be deemed to 
        refer and apply to the Secretary of State.
    (h) Conforming Amendment.--Section 5316 of title 5, United States 
Code, is amended by striking:
            ``Chairman, Foreign Claims Settlement Commission of the 
        United States, Department of Justice.''.
    (i) Effective Date.--This section and the amendment made by this 
section takes effect on October 1, 1995.
                     Subtitle D--Department Reforms
SEC. 2301. REDUCTION IN OVERHEAD EXPENSES OF EXPORT-IMPORT BANK.

    (a) In General.--The amount obligated by the Export-Import Bank 
during fiscal year 1996 for overhead expenses shall not exceed an 
amount sufficient to reduce outlays for such expenses during such 
fiscal year (as compared to such outlays during fiscal year 1995) by 
$1,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).

SEC. 2302. TRANSFERS FROM EXCHANGE STABILIZATION FUND TO THE GENERAL 
              FUND OF THE TREASURY.

    (a) Repayment of Amounts Appropriated to the Exchange Stabilization 
Fund.--Effective October 1, 1996, the Secretary of the Treasury shall 
transfer from the stabilization fund described in section 5302 of title 
31, United States Code, to the general fund of the Treasury the 
$2,000,000,000 appropriated to such fund under subsection (b) of 
section 10 of the Gold Reserve Act of 1934 (minus any amounts 
previously covered into the Treasury pursuant to subsection (c) of such 
section 10 (as amended by section 7(a) of the Bretton Woods Agreements 
Act)).
    (b) Transfer of Net Earnings of the Fund to the General Fund.--
During fiscal years 1994 through ____, the net earnings of the 
stabilization fund described in section 5302 of title 31, United States 
Code, shall be transferred by the Secretary of the Treasury from such 
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.

    (a) Abolition.--The United States Arms Control and Disarmament 
Agency is abolished on the effective date of this chapter.
    (b) Conforming Repeal.--Section 21 of the Arms Control and 
Disarmament Act (22 U.S.C. 2561) is repealed.
    (c) References in Chapter.--Except as specifically provided in this 
chapter, whenever in this chapter an amendment or repeal is expressed 
as an amendment to or repeal of a provision, the reference shall be 
deemed to be made to the Arms Control and Disarmament Act.

SEC. 2402. REPEAL OF POSITIONS AND OFFICES.

    The following sections are repealed:
            (1) Section 22 (22 U.S.C. 2562; relating to the Director).
            (2) Section 23 (22 U.S.C. 2563; relating to the Deputy 
        Director).
            (3) Section 24 (22 U.S.C. 2564; relating to Assistant 
        Directors).
            (4) Section 25 (22 U.S.C. 2565; relating to bureaus, 
        offices, and divisions).

SEC. 2403. AUTHORITIES OF THE SECRETARY OF STATE.

    (a) In General.--(1) Except as provided in paragraph (2), the Arms 
Control and Disarmament Act (22 U.S.C. 2551 et seq.) is amended by 
striking ``Agency'' and ``Director'' each place it appears and 
inserting ``Department'' and ``Secretary'', respectively.
    (2) No amendment shall be made under paragraph (1) to references to 
the On-Site Inspection Agency or to the Director of Central 
Intelligence.
    (b) Purpose.--Section 2 (22 U.S.C. 2551) is amended--
            (1) by striking the second, fourth, fifth, and sixth 
        sentences; and
            (2) in the seventh sentence, by striking ``It'' and all 
        that follows through ``State,'' and inserting ``The Department 
        of State shall have the authority''.
    (c) Definitions.--Section 3 (22 U.S.C. 2552) is amended by striking 
paragraph (c) and inserting the following:
            ``(c) The term `Department' means the Department of State.
            ``(d) The term `Secretary' means the Secretary of State.''.
    (d) Scientific and Policy Advisory Committee.--Section 26(b) (22 
U.S.C. 2566(b)) is amended by striking ``, the Secretary of State, and 
the Director'' and inserting ``and the Secretary of State''.
    (e) Presidential Special Representatives.--Section 27 (22 U.S.C. 
2567) is amended by striking ``, acting through the Director''.
    (f) Program for Visiting Scholars.--Section 28 (22 U.S.C. 2568) is 
amended--
            (1) in the second sentence, by striking ``Agency's 
        activities'' and inserting ``Department's arms control, 
        nonproliferation, and disarmament activities''; and
            (2) in the fourth sentence, by striking ``, and all former 
        Directors of the Agency''.
    (g) Policy Formulation.--Section 33(a) (22 U.S.C. 2573(a)) is 
amended by striking ``shall prepare for the President, the Secretary of 
State,'' and inserting ``shall prepare for the President''.
    (h) Negotiation Management.--Section 34 (22 U.S.C. 2574) is 
amended--
            (1) in subsection (a), by striking ``the President and the 
        Secretary of State'' and inserting ``the President''; and
            (2) by striking subsection (b).
    (i) Verification of Compliance.--Section 37(d) (22 U.S.C. 2577(d)) 
is amended by striking ``Director's designee'' and inserting 
``Secretary's designee''.
    (j) General Authority.--Section 41 (22 U.S.C. 2581) is repealed.
    (k) Use of Funds.--Section 48 (22 U.S.C. 2588) is repealed.
    (l) Annual Report.--Section 51(a) (22 U.S.C. 2593a(a)) is amended 
by striking ``the Secretary of State,''.
    (m) Requirement for Authorization of Appropriations.--Section 53 
(22 U.S.C. 2593c) is repealed.
    (n) On-Site Inspection Agency.--Section 61 (22 U.S.C. 2595) is 
amended--
            (1) in paragraph (1), by striking ``United States Arms 
        Control and Disarmament Agency is'' and inserting ``Department 
        of State and the Department of Defense are respectively''; and
            (2) in paragraph (7), by striking ``the United States Arms 
        Control and Disarmament Agency and''.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS.

    Section 106 of the Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995 (Public Law 103-236) is amended--
            (1) by amending the section heading to read as follows:

``SEC. 106. DEPARTMENT OF STATE ARMS CONTROL AND DISARMAMENT 
              ACTIVITIES.'';

        and
            (2) in subsection (a), by inserting ``to the Secretary of 
        State'' after ``appropriated''.

SEC. 2405. CONFORMING AMENDMENTS.

    (a) The Arms Export Control Act is amended--
            (1) in section 36(b)(1)(D) (22 U.S.C. 2776(b)(1)(D)), by 
        striking ``Director of the Arms Control and Disarmament Agency 
        in consultation with the Secretary of State and'' and inserting 
        ``Secretary of State in consultation with'';
            (2) in section 38(a)(2) (22 U.S.C. 2778(a)(2))--
                    (A) in the first sentence, by striking ``Director 
                of the United States Arms Control and Disarmament 
                Agency, taking into account the Director's'' and 
                inserting ``Secretary of State, taking into account the 
                Secretary's''; and
                    (B) in the second sentence, by striking ``The 
                Director of the Arms Control and Disarmament Agency is 
                authorized, whenever the Director'' and inserting ``The 
                Secretary of State is authorized, whenever the 
                Secretary'';
            (3) in section 42(a) (22 U.S.C. 2791(a))--
                    (A) in paragraph (1)(C), by striking ``Director of 
                the United States Arms Control and Disarmament Agency'' 
                and inserting ``Secretary of State''; and
                    (B) in paragraph (2)--
                            (i) in the first sentence, by striking 
                        ``Director of the United States Arms Control 
                        and Disarmament Agency'' and inserting 
                        ``Secretary of State''; and
                            (ii) in the second sentence, by striking 
                        ``Director of the Arms Control and Disarmament 
                        Agency is authorized, whenever the Director'' 
                        and inserting ``Secretary of State is 
                        authorized, whenever the Secretary'';
            (4) in section 71(a) of such Act (22 U.S.C. 2797(a)), by 
        striking ``, the Director of the Arms Control and Disarmament 
        Agency,'' and inserting ``Secretary of State'';
            (5) in section 71(b)(1) of such Act (22 U.S.C. 2797(b)(1)), 
        by striking ``Director of the United States Arms Control and 
        Disarmament Agency'' and inserting ``Secretary of State;
            (6) in section 71(b)(2) of such Act (22 U.S.C. 
        2797(b)(2))--
                    (A) by striking ``Director of the United States 
                Arms Control and Disarmament Agency'' and inserting 
                ``Secretary of State''; and
                    (B) by striking ``or the Director'';
            (7) in section 71(c) of such Act (22 U.S.C. 2797(c)), by 
        striking ``Director of the United States Arms Control and 
        Disarmament Agency,'' and inserting ``Secretary of State''; and
            (8) in section 73(d) of such Act (22 U.S.C. 2797b(d)), by 
        striking ``, the Secretary of Commerce, and the Director of the 
        United States Arms Control and Disarmament Agency'' and 
        inserting ``and the Secretary of Commerce''.
    (b) Section 1706(b) of the United States Institute of Peace Act (22 
U.S.C. 4605(b)) is amended--
            (1) by striking out paragraph (3);
            (2) by redesignating paragraphs (4) and (5) as paragraphs 
        (3) and (4), respectively; and
            (3) in paragraph (4) (as redesignated by paragraph (2)), by 
        striking ``Eleven'' and inserting ``Twelve''.
    (c) The Atomic Energy Act of 1954 is amended--
            (1) in section 57 b. (42 U.S.C. 2077(b))--
                    (A) in the first sentence, by striking ``the Arms 
                Control and Disarmament Agency,'', and
                    (B) in the second sentence, by striking ``the 
                Director of the Arms Control and Disarmament Agency,'', 
                and
            (2) in section 123 (42 U.S.C. 2153)--
                    (A) in subsection a. (in the text below paragraph 
                (9)--
                            (i) by striking ``and in consultation with 
                        the Director of the Arms Control and 
                        Disarmament Agency (`the Director')'', and
                            (ii) by striking ``and the Director'' and 
                        inserting ``and the Secretary of Defense'',
                    (B) in subsection d., in the first proviso, by 
                striking ``Director of the Arms Control and Disarmament 
                Agency'' and inserting ``Secretary of Defense'', and
                    (C) in the first undesignated paragraph following 
                subsection d., by striking ``the Arms Control and 
                Disarmament Agency,''.
    (d) The Nuclear Non-Proliferation Act of 1978 is amended--
            (1) in section 4, by striking paragraph (2);
            (2) in section 102, by striking ``the Secretary of State, 
        and the Director of the Arms Control and Disarmament Agency'' 
        and inserting ``and the Secretary of State''; and
            (3) in section 602(c), by striking ``the Arms Control and 
        Disarmament Agency,''.
    (e) Title 5, United States Code, is amended--
            (1) in section 5313, by striking ``Director of the United 
        States Arms Control and Disarmament Agency.'',
            (2) in section 5314, by striking ``Deputy Director of the 
        United States Arms Control and Disarmament Agency.'',
            (3) in section 5315--
                    (A) by striking ``Assistant Directors, United 
                States Arms Control and Disarmament Agency (4).'', and
                    (B) by striking ``Special Representatives of the 
                President for arms control, nonproliferation, and 
                disarmament matters, United States Arms Control and 
                Disarmament Agency'', and inserting ``Special 
                Representatives of the President for arms control, 
                nonproliferation, and disarmament matters, Department 
                of State'', and
            (4) in section 5316, by striking ``General Counsel of the 
        United States Arms Control and Disarmament Agency.''.

SEC. 2406. REFERENCES IN LAW.

    Any reference in any statute, reorganization plan, Executive order, 
regulation, agreement, determination, or other official document or 
proceeding to the United States Arms Control and Disarmament Agency or 
the Director or other official of the United States Arms Control and 
Disarmament Agency shall be deemed to refer respectively to the 
Department of State or the Secretary of State or other official of the 
Department of State.

SEC. 2407. EFFECTIVE DATE.

    This chapter and the amendments made by this chapter shall take 
effect on March 1, 1997.

              CHAPTER 2--UNITED STATES INFORMATION AGENCY

SEC. 2431. ABOLITION.

    The United States Information Agency is abolished upon the 
effective date of this chapter.
SEC. 2432. REFERENCES IN LAW.

    Any reference in any statute, reorganization plan, Executive order, 
regulation, agreement, determination, or other official document or 
proceeding to--
            (1) the Director of the United States Information Agency or 
        the Director of the International Communication Agency shall be 
        deemed to refer to the Secretary of State; and
            (2) the United States Information Agency, USIA, or the 
        International Communication Agency shall be deemed to refer to 
        the Department of State.

SEC. 2433. AMENDMENTS TO TITLE 5.

    Title 5, United States Code, is amended--
            (1) in section 5313, by striking ``Director of the United 
        States Information Agency.'';
            (2) in section 5315, by striking ``Deputy Director of the 
        United States Information Agency.''; and
            (3) in section 5316, by striking ``Deputy Director, Policy 
        and Plans, United States Information Agency.'' and striking 
        ``Associate Director (Policy and Plans), United States 
        Information Agency.''.
SEC. 2434. AMENDMENTS TO UNITED STATES INFORMATION AND EDUCATIONAL 
              EXCHANGE ACT OF 1948.

    (a) References in Section.--Except as specifically provided in this 
section, whenever in this section an amendment or repeal is expressed 
as an amendment or repeal of a provision, the reference shall be deemed 
to be made to the United States Information and Educational Exchange 
Act of 1948 (22 U.S.C. 1431 et seq.).
    (b) In General.--Except as otherwise provided in this section, the 
Act (other than section 604 and subsections (a) and (c) of section 701) 
is amended--
            (1) by striking ``United States Information Agency'' each 
        place it appears and inserting ``Department of State'';
            (2) by striking ``Director of the United States Information 
        Agency'' each place it appears and inserting ``Secretary of 
        State'';
            (3) by striking ``Director'' each place it appears and 
        inserting ``Secretary of State'';
            (4) by striking ``USIA'' each place it appears and 
        inserting ``Department of State; and
            (5) by striking ``Agency'' each place it appears and 
        inserting ``Department of State.
    (c) Satellite and Television Broadcasts.--Section 505 (22 U.S.C. 
1464a) is amended--
            (1) by striking ``Director of the United States Information 
        Agency'' each of the three places it appears and inserting 
        ``Secretary of State'';
            (2) in subsection (b), by striking ``To be effective, the 
        United States Information Agency'' and inserting ``To be 
        effective in carrying out this subsection, the Department of 
        State'';
            (3) by striking ``USIA-TV'' each place it appears and 
        inserting ``DEPARTMENT OF STATE-TV''; and
            (4) by striking subsection (e).
    (d) Nondiscretionary Personnel Costs and Currency Fluctuations.--
Section 704 (22 U.S.C. 1477b) is amended--
            (1) in subsection (b), by inserting after ``authorized by 
        law'' the following: ``in connection with carrying out the 
        informational and educational exchange functions of the 
        Department''; and
            (2) in subsection (c), by striking ``United States 
        Information Agency'' each place it appears and inserting 
        ``Department of State in carrying out the informational and 
        educational exchange functions of the Department''.
    (e) Reprogramming Notifications.--Section 705 (22 U.S.C. 1477c) is 
amended by striking ``United States Information Agency'' each place it 
appears and inserting ``Department of State in carrying out its 
informational and educational exchange functions''.
    (f) Authorities of the Secretary.--Section 801(3) (22 U.S.C. 
1471(3)) is amended by striking all ``if the sufficiency'' and all that 
follows and inserting ``if the Secretary determines that title to such 
real property or interests is sufficient;''.
    (g) Repeal of the USIA Seal.--Section 807 (22 U.S.C. 1475b) is 
repealed.
    (h) Acting Associate Directors.--Section 808 (22 U.S.C. 1475c) is 
repealed.
    (i) Debt Collection.--Section 811 (22 U.S.C. 1475f) is amended by 
inserting ``informational and educational exchange'' before 
``activities'' each place it appears.
    (j) Overseas Posts.--Section 812 (22 U.S.C. 1475g) is amended by 
striking ``United States Information Agency post'' each place it 
appears and inserting ``informational and educational exchange post of 
the Department of State''.
    (k) Definition.--Section 4 (22 U.S.C. 1433) is amended by adding at 
the end the following:
            ``(4) `informational and educational exchange functions', 
        with respect to the Department of State, refers to functions 
        exercised by the United States Information Agency before the 
        effective date of title XIII of the Foreign Affairs Reinvention 
        Act of 1995.''.

SEC. 2435. AMENDMENTS TO THE MUTUAL EDUCATIONAL AND CULTURAL EXCHANGE 
              ACT OF 1961 (FULBRIGHT-HAYS ACT).

    (a) References in Section.--Except as specifically provided in this 
section, whenever in this section an amendment or repeal is expressed 
as an amendment or repeal of a provision, the reference shall be deemed 
to be made to the Mutual Educational and Cultural Exchange Act of 1961 
(22 U.S.C. 2451 et seq.).
    (b) In General.--The Act (22 U.S.C. 2451 et seq.) is amended by 
striking ``Director of the International Communication Agency'' each 
place it appears and inserting ``Secretary of State''.
    (c) Program Authorities.--(1) Section 102(a) (22 U.S.C. 2452(a)) is 
amended by striking ``President'' each place it appears and inserting 
``Secretary of State''.
    (2) Section 102(b) (22 U.S.C. 2452(b)) is amended by striking 
``President'' and inserting ``Secretary of State (except, in the case 
of paragraphs (6) and (10), the President)''.
    (d) International Agreements.--Section 103 (22 U.S.C. 2453) is 
amended by striking ``President'' each place it appears and inserting 
``Secretary of State''.
    (e) Personnel Benefits.--Section 104(d) (22 U.S.C. 2454(d)) is 
amended by striking ``President'' each place it appears and inserting 
``Secretary of State''.
    (f) Foreign Student Counseling.--Section 104(e)(3) (22 U.S.C. 
2454(e)(3)) is amended by striking ``President'' and inserting 
``Secretary of State''.
    (g) Publicity and Promotion Overseas.--Section 104(e)(4) (22 U.S.C. 
2454(e)(4)) is amended by striking ``President'' and inserting 
``Secretary of State''.
    (h) Use of Funds.--Section 105(e) (22 U.S.C. 2455(e)) is amended by 
striking ``President'' each place it appears and inserting ``Secretary 
of State''.
    (i) Repeal of Authority for Abolished Advisory Committee.--Section 
106(c) of the Mutual Educational and Cultural Exchange Act of 1961 (22 
U.S.C. 2456(c)) is repealed.
    (j) Bureau of Educational and Cultural Affairs.--
            (1) In general.--Section 112(a) (22 U.S.C. 2460(a)) is 
        amended by striking the first sentence and inserting the 
        following: ``In order to carry out the purposes of this Act, 
        there is established in the Department of State a Bureau for 
        International Exchange Activities (in this section referred to 
        as the ``Bureau'').
            (2) Implementation of programs.--Section 112(c) (22 U.S.C. 
        2460(c)) is amended by striking ``President'' each place it 
        appears and inserting ``Secretary of State''.

SEC. 2436. INTERNATIONAL BROADCASTING ACTIVITIES.

    (a) In General.--(1) Except as otherwise provided in paragraph (2), 
title III of the Foreign Relations Authorization Act, Fiscal Years 1994 
and 1995 (Public Law 103-236) is amended--
            (A) by striking ``Director of the United States Information 
        Agency'' or ``Director'' each place it appears and inserting 
        ``Under Secretary of State for Public Diplomacy'';
            (B) by striking all references to ``United States 
        Information Agency'' that were not stricken in subparagraph (A) 
        and inserting ``Department of State'';
            (C) in section 305(a)(1), by inserting ``(including 
        activities of the Voice of America previously carried out by 
        the United States Information Agency)'' after ``this title'';
            (D) in section 305(b), by striking ``Agency's'' each place 
        it appears and inserting ``Department's''; and
            (E) by striking ``Bureau'' each place it appears and 
        inserting ``Office''.
    (2) Title III of such Act is amended--
            (A) in section 304(c)--
                    (i) by striking ``Director's'' and inserting 
                ``Under Secretary's''; and
                    (ii) in the fifth sentence, by striking ``Director 
                of the United States Information Agency, the acting 
                Director of the agency'' and inserting ``Under 
                Secretary of State for Public Diplomacy, the acting 
                Under Secretary'';
            (B) in sections 305(b) and 307(b)(1), by striking 
        ``Director of the Bureau'' each place it appears and inserting 
        ``Director of the Office'';
            (C) in subsections (i) and (j) of section 308, by striking 
        ``Inspector General of the United States Information Agency'' 
        each place it appears and inserting ``Inspector General for 
        Foreign Affairs''; and
            (D) in section 310(d), by striking ``Director on the date 
        of enactment of this Act, to the extent that the Director'' and 
        inserting ``Under Secretary on the effective date of title XIII 
        of the Foreign Affairs Reinvention Act of 1995, to the extent 
        that the Under Secretary''.
    (b) Conforming Amendment to Title 5.--Section 5315 of title 5, 
United States Code, is amended by striking ``Director of the 
International Broadcasting Bureau, the United States Information 
Agency'' and inserting ``Director of the International Broadcasting 
Office, the Department of State''.

SEC. 2437. TELEVISION BROADCASTING TO CUBA.

    (a) Authority.--Section 243(a) of the Television Broadcasting to 
Cuba Act (as contained in part D of title II of Public Law 101-246) (22 
U.S.C. 1465bb(a)) is amended by striking ``United States Information 
Agency (hereafter in this part referred to as the `Agency')'' and 
inserting ``Department of State (hereafter in this chapter referred to 
as the `Department')''.
    (b) Television Marti Service.--Section 244 of such Act (22 U.S.C. 
1465cc) is amended--
            (1) in subsection (a)--
                    (A) by amending the first sentence to read as 
                follows: ``The Secretary of State shall administer 
                within the Voice of America the Television Marti 
                Service.'', and
                    (B) in the third sentence, by striking ``Director 
                of the United States Information Agency'' and inserting 
                ``Secretary of State'';
            (2) in subsection (b)--
                    (A) in the subsection heading, by striking ``USIA'' 
                and inserting ``Department of State'',
                    (B) by striking ``Agency facilities'' and inserting 
                ``Department facilities'', and
                    (C) by striking ``United States Information Agency 
                Television Service'' and inserting ``Department of 
                State Television Service''; and
            (3) in subsection (c)--
                    (A) by striking ``USIA Authority.--The Agency'' and 
                inserting ``Secretary of State Authority.--The 
                Secretary of State''; and
                    (B) by striking ``Agency'' the second place it 
                appears and inserting ``Secretary of State''.
    (c) Assistance From Other Government Agencies.--Section 246 of such 
Act (22 U.S.C. 1465dd) is amended--
            (1) by striking ``United States Information Agency'' and 
        inserting ``Department of State''; and
            (2) by striking ``the Agency'' and inserting ``the 
        Department''.
    (d) Authorization of Appropriations.--Section 247(a) of such Act 
(22 U.S.C. 1465ee(a)) is repealed.

SEC. 2438. RADIO BROADCASTING TO CUBA.

    (a) Functions of the Department of State.--Section 3 of the Radio 
Broadcasting to Cuba Act (22 U.S.C. 1465a) is amended--
            (1) in the section heading, by striking ``United States 
        Information Agency'' and inserting ``Department of State'';
            (2) in subsection (a), by striking ``United States 
        Information Agency (hereafter in this Act referred to as the 
        `Agency')'' and inserting ``Department of State (hereafter in 
        this Act referred to as the `Department')'';
            (3) by striking subsection (d); and
            (4) in subsection (f), by striking ``Director of the United 
        States Information Agency'' and inserting ``Secretary of 
        State''.
    (b) Cuba Service.--Section 4 of such Act (22 U.S.C. 1465b) is 
amended--
            (1) by amending the first sentence to read as follows: 
        ``The Secretary of State shall administer within the Voice of 
        America the Cuba Service (hereafter in this section referred to 
        as the `Service').''; and
            (2) in the third sentence, by striking ``Director of the 
        United States Information Agency'' and inserting ``Secretary of 
        State''.
    (c) Assistance From Other Government Agencies.--Section 6 of such 
Act (22 U.S.C. 1465d) is amended--
            (1) in subsection (a)--
                    (A) by striking ``United States Information 
                Agency'' and inserting ``Department of State''; and
                    (B) by striking ``the Agency'' and inserting ``the 
                Department''; and
            (2) in subsection (b)--
                    (A) by striking ``The Agency'' and inserting ``The 
                Department''; and
                    (B) by striking ``the Agency'' and inserting ``the 
                Secretary of State''.
    (d) Facility Compensation.--Section 7 of such Act (22 U.S.C. 1465e) 
is amended--
            (1) in subsection (b), by striking ``the Agency'' and 
        inserting ``the Department''; and
            (2) in subsection (d), by striking ``Agency'' and inserting 
        ``Department''.
    (e) Authorization of Appropriations.--Section 8 of such Act (22 
U.S.C. 1465f) is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(a) The amount obligated by the Department of State each fiscal 
year to carry out this Act shall be sufficient to maintain broadcasts 
to Cuba under this Act at rates no less than the fiscal year 1985 level 
of obligations by the former United States Information Agency for such 
broadcasts.''; and
            (2) by redesignating subsection (c) as subsection (b).
SEC. 2439. NATIONAL ENDOWMENT FOR DEMOCRACY.

    (a) Grants.--Section 503 of Public Law 98-164, as amended (22 
U.S.C. 4412) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Director of the United States 
                Information Agency'' and inserting ``Secretary of 
                State'';
                    (B) by striking ``the Agency'' and inserting ``the 
                Department of State''; and
                    (C) by striking ``the Director'' and inserting 
                ``the Secretary of State''; and
            (2) in subsection (b), by striking ``United States 
        Information Agency'' and inserting ``Department of State''.
    (b) Audits.--Section 504(g) of such Act (22 U.S.C. 4413(g)) is 
amended by striking ``United States Information Agency'' and inserting 
``Department of State''.
    (c) Freedom of Information.--Section 506 of such Act (22 U.S.C. 
4415) is amended--
            (1) in subsection (b)--
                    (A) by striking ``Director'' each of the three 
                places it appears and inserting ``Secretary''; and
                    (B) by striking ``of the United States Information 
                Agency'' and inserting ``of State''; and
            (2) in subsection (c)--
                    (A) in the subsection heading by striking ``USIA'' 
                and inserting ``Department of State'';
                    (B) by striking ``Director'' each of the three 
                places it appears and inserting ``Secretary'';
                    (C) by striking ``of the United States Information 
                Agency'' and inserting ``of State''; and
                    (D) by striking ``United States Information 
                Agency'' and inserting ``Department of State''.

SEC. 2430. UNITED STATES SCHOLARSHIP PROGRAM FOR DEVELOPING COUNTRIES.

    (a) Program Authority.--Section 603 of the Foreign Relations 
Authorization Act, Fiscal Years 1986 and 1987 (22 U.S.C. 4703) is 
amended by striking ``United States Information Agency'' and inserting 
``Department of State''.
    (b) Guidelines.--Section 604(11) of such Act (22 U.S.C. 4704(11)) 
is amended by striking ``United States Information Agency'' and 
inserting ``Department of State''.
    (c) Policy Regarding Other International Educational Programs.--
Section 606(b) of such Act (22 U.S.C. 4706(b)) is amended--
            (1) in the subsection heading, by striking ``USIA'' and 
        inserting ``State Department''; and
            (2) by striking ``Director of the United States Information 
        Agency'' and inserting ``Secretary of State''.
    (d) General Authorities.--Section 609(e) of such Act (22 U.S.C. 
4709(e)) is amended by striking ``United States Information Agency'' 
and inserting ``Department of State''.

SEC. 2431. NATIONAL SECURITY EDUCATION BOARD.

    Section 803 of the Intelligence Authorization Act, Fiscal Year 1992 
(50 U.S.C. 1903(b)) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (6); and
                    (B) by redesignating paragraph (7) as paragraph 
                (6); and
            (2) in subsection (c), by striking ``subsection (b)(7)'' 
        and inserting ``subsection (b)(6)''.

SEC. 2432. CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN NORTH 
              AND SOUTH.

    Section 208 of the Foreign Relations Authorization Act, Fiscal 
Years 1992 and 1993 (22 U.S.C. 2075) is amended by striking ``Director 
of the United States Information Agency'' each place it appears and 
inserting ``Secretary of State''.

SEC. 2433. CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN EAST 
              AND WEST.

    (a) Duties.--Section 703 of the Mutual Security Act of 1960 (22 
U.S.C. 2055) is amended--
            (1) in the text above paragraph (1), by striking ``Director 
        of the United States Information Agency'' (hereinafter referred 
        to as the `Director')'' and inserting ``Secretary of State 
        (hereinafter referred to as the `Secretary'); and
            (2) in paragraph (1), by striking ``establishment and''.
    (b) Administration.--Section 704 of such Act (22 U.S.C. 2056) is 
amended--
            (1) by striking ``Director of the United States Information 
        Agency'' and inserting ``Secretary of State''; and
            (2) by striking ``Director'' each place it appears and 
        inserting ``Secretary''.
SEC. 2434. MISSION OF THE DEPARTMENT OF STATE.

    Section 202 of the Foreign Relations Authorization Act, Fiscal Year 
1979 (22 U.S.C. 1461-1) is amended--
            (1) in the first sentence, by striking ``mission of the 
        United States Information Agency'' and inserting ``mission of 
        the Department of State in carrying out its information, 
        educational, and cultural functions'';
            (2) in the second sentence, in the text above paragraph 
        (1), by striking ``United States Information Agency'' and 
        inserting ``Department of State'';
            (3) in paragraph (1)(B), by striking ``Agency'' and 
        inserting ``Department''; and
            (4) in paragraph (5), by striking ``mission of the Agency'' 
        and inserting ``mission described in this section''.

SEC. 2435. CONSOLIDATION OF ADMINISTRATIVE SERVICES.

    Section 23 of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2695(a)) is amended--
            (1) by striking ``(including'' and all that follows through 
        ``Agency)''; and
            (2) by striking ``other such agencies'' and inserting 
        ``other Federal agencies''.

SEC. 2436. GRANTS.

    Section 212 of the Foreign Relations Authorization Act, Fiscal 
Years 1992 and 1993 (22 U.S.C. 1475h) is amended--
            (1) in subsection (a), by striking ``United States 
        Information Agency'' and inserting ``Department of State, in 
        carrying out its international information, educational, and 
        cultural functions,'';
            (2) in subsection (b), by striking ``United States 
        Information Agency'' and inserting ``Department of State'';
            (3) in subsection (c)--
                    (A) in paragraph (1), by striking ``United States 
                Information Agency shall substantially comply with 
                United States Information Agency'' and inserting 
                ``Department of State, in carrying out its 
                international information, educational, and cultural 
                functions, shall substantially comply with Department 
                of State''; and
                    (B) in paragraph (2), by striking ``United States 
                Information Agency'' and inserting ``Department of 
                State''; and
                    (C) in paragraphs (2) and (3), by striking 
                ``Agency'' each of the two places it appears and 
                inserting ``Department''; and
            (4) by striking subsection (d).
SEC. 2437. BAN ON DOMESTIC ACTIVITIES.

    Section 208 of the Foreign Relations Authorization Act, Fiscal 
Years 1986 and 1987 (22 U.S.C. 1461-1a) is amended--
            (1) by striking out ``United States Information Agency'' 
        each of the two places it appears and inserting ``Department of 
        State''; and
            (2) by inserting ``in carrying out international 
        information, educational, and cultural activities comparable to 
        those previously administered by the United States Information 
        Agency'' before ``shall be distributed''.

SEC. 2438. CONFORMING REPEAL TO THE ARMS CONTROL AND DISARMAMENT ACT.

    Section 34(b) of the Arms Control and Disarmament Act (22 U.S.C. 
2574(b)) is repealed.

SEC. 2439. REPEAL RELATING TO PROCUREMENT OF LEGAL SERVICES.

    Section 26(b) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2698(b)) is repealed.
SEC. 2440. REPEAL RELATING TO PAYMENT OF SUBSISTENCE EXPENSES.

    Section 32 of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2704) is amended by striking the second sentence.

SEC. 2441. CONFORMING AMENDMENT TO THE SEED ACT.

    Section 2(c) of the Support for East European Democracy (SEED) Act 
of 1989 (22 U.S.C. 5401(c)) is amended in paragraph (17) by striking 
``United States Information Agency'' and inserting ``Department of 
State''.

SEC. 2442. INTERNATIONAL CULTURAL AND TRADE CENTER COMMISSION.

    Section 7(c)(1) of the Federal Triangle Development Act (40 U.S.C. 
1106(c)(1)) is amended--
            (1) in the text above subparagraph (A), by striking ``15 
        members'' and inserting ``14 members'';
            (2) by striking subparagraph (F); and
            (3) by redesignating subparagraphs (G) through (J) as 
        subparagraphs (F) through (I), respectively.

SEC. 2443. OTHER LAWS REFERENCED IN REORGANIZATION PLAN NO. 2 OF 1977.

    (a) Immigration and Nationality Act.--(1) Section 101(a)(15)(J) of 
the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(J)) is 
amended by striking ``Director of the United States Information 
Agency'' and inserting ``Secretary of State''.
    (2) Section 212(e) of such Act (8 U.S.C. 1182(e)) is amended--
            (A) by striking ``Director of the United States Information 
        Agency'' and inserting ``Secretary of State''; and
            (B) by striking ``Director'' each place it appears and 
        inserting ``Secretary''.
    (b) Arts and Artifacts Indemnity Act.--Section 3(a) of the Arts and 
Artifacts Indemnity Act (20 U.S.C. 972(a)) is amended by striking out 
``Director of the United States Information Agency'' and inserting in 
lieu thereof ``Secretary of State''.
    (c) National Foundation on the Arts and the Humanities Act of 
1965.--Section 9(b) of the National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 958(b)) is amended by striking out 
``a member designated by the Director of the United States Information 
Agency,'' and inserting in lieu thereof ``a member designated by the 
Secretary of State,''.
    (d) Woodrow Wilson Memorial Act of 1968.--Section 3(b) of the 
Woodrow Wilson Memorial Act of 1968 (20 U.S.C. 80f(b)) is amended--
            (1) in the matter preceding paragraph (1), by striking out 
        ``19 members'' and inserting in lieu thereof ``18 members'';
            (2) by striking out paragraph (7); and
            (3) by redesignating paragraphs (8), (9), and (10) as 
        paragraphs (7), (8), and (9), respectively.
    (e) Public Law 95-86.--Title V of the Departments of State, 
Justice, and Commerce, the Judiciary, and Related Agencies 
Appropriations Act, 1978 (Public Law 95-86) is amended in the third 
proviso of the paragraph ``salaries and expenses'' under the heading 
``United States Information Agency'' (22 U.S.C. 1461b) by striking out 
``the United States Information Agency is authorized,'' and inserting 
in lieu thereof ``the Secretary of State may,''.
    (f) Act of July 9, 1949.--The Act of July 9, 1949 (63 Stat. 408; 
chapter 301; 22 U.S.C. 2681 et seq.) is repealed.

SEC. 2444. EXCHANGE PROGRAM WITH COUNTRIES IN TRANSITION FROM 
              TOTALITARIANISM TO DEMOCRACY.

    Section 602 of the National and Community Service Act of 1990 (22 
U.S.C. 2452a) is amended--
            (1) in the second sentence of subsection (a), by striking 
        ``United States Information Agency'' and inserting ``Department 
        of State''; and
            (2) in subsection (b)--
                    (A) by striking ``appropriations account of the 
                United States Information Agency'' and inserting 
                ``appropriate appropriations account of the Department 
                of State''; and
                    (B) by striking ``and the United States Information 
                Agency''.

SEC. 2445. EDMUND S. MUSKIE FELLOWSHIP PROGRAM.

    Section 227 of the Foreign Relations Authorization Act, Fiscal 
Years 1992 and 1993 (22 U.S.C. 2452 note) is amended--
            (1) in subsection (b), by striking ``United States 
        Information Agency'' and inserting ``Department of State''; and
            (2) by striking subsection (d).

SEC. 2446. IMPLEMENTATION OF CONVENTION ON CULTURAL PROPERTY.

    Title III of the Convention on Cultural Property Implementation Act 
(19 U.S.C. 2601 et seq.) is amended by striking ``Director of the 
United States Information Agency'' each place it appears and inserting 
``Secretary of State''.

SEC. 2447. REPEAL.

    Section 252(a) of the Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995 (22 U.S.C. 6101(a)) is repealed.

SEC. 2448. UNITED STATES ADVISORY COMMITTEE FOR PUBLIC DIPLOMACY.

    Section 604 of the United States Information and Educational 
Exchange Act of 1948 (22 U.S.C. 1469) is amended--
            (1) in subsection (c)(1)--
                    (A) by striking ``the Director of the United States 
                Information Agency,''; and
                    (B) by striking ``Director or the Agency, and shall 
                appraise the effectiveness of policies and programs of 
                the Agency'' and inserting ``Secretary of State or the 
                Department of State, and shall appraise the 
                effectiveness of the information, educational, and 
                cultural policies and programs of the Department'';
            (2) in subsection (c)(2), in the first sentence--
                    (A) by striking ``the Secretary of State, and the 
                Director of the United States Information Agency'' and 
                inserting ``, and the Secretary of State'';
                    (B) by striking ``Agency'' the first place it 
                appears and inserting ``Department of State''; and
                    (C) by striking ``Director for effectuating the 
                purposes of the Agency'' and inserting ``Secretary for 
                effectuating the information, educational, and cultural 
                functions of the Department'';
            (3) in subsection (c)(3), by striking ``programs conducted 
        by the Agency'' and inserting ``information, educational, and 
        cultural programs conducted by the Department of State''; and
            (4) in subsection (c)(4), by striking ``Director of the 
        United States Information Agency'' and inserting ``Secretary of 
        State''.

SEC. 2449. EFFECTIVE DATE.

    This chapter, and the amendments made by this chapter, shall take 
effect on March 1, 1997.

            CHAPTER 3--AGENCY FOR INTERNATIONAL DEVELOPMENT

                    Subchapter A--General Provisions

SEC. 2451. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this 
chapter, and the amendments made by this chapter, shall take effect--
            (1) on March 1, 1997; or
            (2) on such earlier date as the President shall determine 
        to be appropriate and announce by notice published in the 
        Federal Register, which date may be not earlier than 60 
        calendar days (excluding any day on which either House of 
        Congress is not in session because of an adjournment sine die) 
        after the President has submitted a reorganization plan to the 
        appropriate congressional committees pursuant to section 421.
    (b) Reorganization Plan.--Section 421 shall take effect on the date 
of enactment of this Act.

SEC. 2452. REFERENCES IN THIS CHAPTER.

    Except as specifically provided in this chapter, whenever in this 
chapter an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a provision, the reference shall be considered to be 
made to a provision of the Foreign Assistance Act of 1961.

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.

    The Agency for International Development and the International 
Development Cooperation Agency are abolished.

SEC. 2456. TRANSFER OF FUNCTIONS TO SECRETARY OF STATE.

    There are transferred to the Secretary of State all functions of 
the Administrator of the Agency for International Development and the 
Director of the International Development Cooperation Agency and all 
functions of the Agency for International Development and the 
International Development Cooperation Agency and any officer or 
component of such agencies under any statute, reorganization plan, 
Executive order, or other provision of law before the effective date of 
this chapter, except as otherwise provided in this chapter.

    Subchapter C--Reorganization of Department of State Relating to 
                Functions Transferred Under This Chapter

SEC. 2461. REORGANIZATION PLAN.

    (a) Submission of Plan.--Not later than March 1, 1996, the 
President, in consultation with the Secretary and the Administrator of 
the Agency for International Development, shall transmit to the 
appropriate congressional committees a reorganization plan providing 
for--
            (1) the abolition of the Agency for International 
        Development in accordance with this chapter;
            (2) the transfer to the Department of State of the 
        functions and personnel of the Agency for International 
        Development consistent with the provisions of this chapter; and
            (3) the consolidation, reorganization, and streamlining of 
        the Department upon the transfer of functions under this 
        chapter in order to carry out such functions.
    (b) Plan Elements.--The plan under subsection (a) shall--
            (1) identify the functions of the Agency for International 
        Development that will be transferred to the Department under 
        the plan;
            (2) identify the personnel and positions of the Agency 
        (including civil service personnel, Foreign Service personnel, 
        and detailees) that will be transferred to the Department, 
        separated from service with the Agency, or be eliminated under 
        the plan, and set forth a schedule for such transfers, 
        separations, and terminations;
            (3) identify the personnel and positions of the Department 
        (including civil service personnel, Foreign Service personnel, 
        and detailees) that will be transferred within the Department, 
        separated from service with the Department, or eliminated under 
        the plan, and set forth a schedule for such transfers, 
        separations, and terminations;
            (4) specify the consolidations and reorganization of 
        functions of the Department that will be required under the 
        plan in order to permit the Department to carry out the 
        functions transferred to the Department under the plan;
            (5) specify the funds available to the Agency for 
        International Development that will be transferred to the 
        Department under this chapter as a result of the transfer of 
        functions of the Agency to the Department;
            (6) specify the proposed allocations within the Department 
        of unexpended funds transferred in connection with the transfer 
        of functions under the plan; and
            (7) specify the proposed disposition of the property, 
        facilities, contracts, records, and other assets and 
        liabilities of the Agency in connection with the transfer of 
        the functions of the Agency to the Department.
    (c) Assistant Secretary Positions.--The plan under subsection (a) 
shall provide for an appropriate number of Assistant Secretaries of 
State to carry out the functions transferred to the Department under 
this chapter.

SEC. 2462. PRINCIPAL OFFICERS.

    (a) Under Secretary of State for Development and Economic 
Affairs.--
            (1) Establishment.--Section 1(b) of the State Department 
        Basic Authorities Act of 1956 (22 U.S.C. 2651a(b)) is amended 
        by adding after paragraph (2) the following new paragraph:
            ``(3) Under secretary for development and economic 
        affairs.--There shall be in the Department of State an Under 
        Secretary for Development and Economic Affairs who shall assist 
        the Secretary and the Deputy Secretary in the formation and 
        implementation of United States policies and activities 
        concerning international development and economic affairs.''.
    (b) Transition Provision.--The President may appoint the individual 
serving as Administrator of the Agency for International Development on 
the day before the effective date of this chapter, or such other 
official appointed by and with the advice and consent of the Senate and 
serving within the Department of State or the Agency for International 
Development as the President considers appropriate, to serve as the 
acting Under Secretary for Development and Economic Affairs until an 
individual is appointed to that office in accordance with section 
1(b)(1) of the State Department Basic Authorities Act of 1956, as 
amended by this Act.

                  Subchapter D--Conforming Amendments

SEC. 2465. REFERENCES.

    Any reference in any statute, reorganization plan, Executive order, 
regulation, agreement, determination, or other official document or 
proceeding to--
            (1) the Administrator of the Agency for International 
        Development, or any other officer or employee of the Agency for 
        International Development shall be deemed to refer to the 
        Secretary of State;
            (2) the Director or any other officer or employee of the 
        International Development Cooperation Agency (IDCA) shall be 
        deemed to refer to the Secretary of State; or
            (3) the Agency for International Development, AID, the 
        agency primarily responsible for administering part I of the 
        Foreign Assistance Act of 1961, or the International 
        Development Cooperation Agency (IDCA) shall be deemed to refer 
        to the Department of State.

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.

    (a) Abolition of Office of Inspector General of the Agency for 
International Development.--The Office of Inspector General of the 
Agency for International Development is abolished.
    (b) Amendments to the Inspector General Act of 1978.--The Inspector 
General Act of 1978 (5 U.S.C. App.) is amended as follows:
            (1) Section 8A is repealed.
            (2) Section 11(1) is amended by striking ``the 
        Administrator of the Agency for International Development,''.
            (3) Section 11(2) is amended by striking ``the Agency for 
        International Development,''.
    (c) Amendments to Title 5, United States Code.--Section 5315 of 
title 5, United States Code, is amended by striking the following: 
``Inspector General, Agency for International Development.''.
    (d) Functions of Office of Inspector General of the Agency for 
International Development Transferred to Office of Inspector General of 
the Department of State.--There are transferred to the Office of 
Inspector General of the Department of State the functions that the 
Office of Inspector General of the Agency for International Development 
exercised before the effective date of this chapter (including all 
related functions of the Inspector General of the Agency for 
International Development).
    (e) Transfer and Allocations of Appropriations and Personnel.--The 
Inspector General of the Department of State, is authorized to make 
such incidental dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out the provisions of 
this section.

SEC. 2467. ABOLITION OF CHIEF FINANCIAL OFFICER OF THE AGENCY FOR 
              INTERNATIONAL DEVELOPMENT AND TRANSFER OF FUNCTIONS TO 
              CHIEF FINANCIAL OFFICER DEPARTMENT OF STATE.

    (a) Abolition of Office of Chief Financial Officer of the Agency 
for International Development.--The Office of Chief Financial Officer 
of the Agency for International Development is abolished.
    (b) Amendment to Title 31, United States Code.--Section 901(b)(2) 
of title 31, United States Code, is amended by striking subparagraph 
(A).
    (c) Functions of Office of Chief Financial Officer of the Agency 
for International Development Transferred to Office of Chief Financial 
Officer of the Department of State.--There are transferred to the 
Office of Chief Financial Officer of the Department of State the 
functions that the Office of Chief Financial Officer of the Agency for 
International Development exercised before the effective date of this 
chapter (including all related functions of the Chief Financial Officer 
of the Agency for International Development).
    (d) Transfer and Allocations of Appropriations and Personnel.--The 
Director of the Office of Management and Budget, in consultation with 
the Secretary of State, is authorized to make such incidental 
dispositions of personnel, assets, liabilities, grants, contracts, 
property, records, and unexpended balances of appropriations, 
authorizations, allocations, and other funds held, used, arising from, 
available to, or to be made available in connection with such 
functions, as may be necessary to carry out the provisions of this 
section.

SEC. 2468. AMENDMENTS TO TITLE 5, UNITED STATES CODE.

    Title 5, United States Code, is amended--
            (1) in section 5313, by striking ``Administrator, Agency 
        for International Development.'';
            (2) in section 5314, by striking ``Deputy Administrator, 
        Agency for International Development.'';
            (3) in section 5315--
                    (A) by striking ``Assistant Administrators, Agency 
                for International Development (6).''; and
                    (B) by striking ``Regional Assistant 
                Administrators, Agency for International Development 
                (4).''; and
            (4) in section 5316 by striking ``General Counsel of the 
        Agency for International Development.''.

SEC. 2469. PUBLIC LAW 480 PROGRAM.

    The Agricultural Trade Development and Assistance Act of 1954 
(Public Law 83-480; 7 U.S.C. 1691 et seq.) is amended by striking 
``Administrator'' each place it appears and inserting ``Under Secretary 
of State for Development and Economic Affairs''.

 CHAPTER 4--ORGANIZATION OF THE DEPARTMENT OF STATE AND FOREIGN SERVICE

SEC. 2471. OFFICE OF THE SECRETARY OF STATE.

    (a) Secretary of State.--Section 1 of the State Department Basic 
Authorities of 1956 (22 U.S.C. 2651a) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) The Secretary shall serve as the principal foreign 
        policy adviser to the President and shall, under the direction 
        of the President, be responsible for the overall direction, 
        coordination, and supervision of United States foreign 
        relations and for the interdepartmental activities of the 
        United States Government abroad.''.
    (b) Deputy Secretary.--Section 1(b) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2651a(b)) is amended to read as 
follows:
    ``(b) Deputy Secretary.--(1) There shall be within the Department 
of State a Deputy Secretary of State, who shall be appointed by the 
President, by and with the advice and consent of the Senate.
    ``(2) The Deputy Secretary shall have primary responsibility, which 
may not be delegated, to assure adequate foreign policy coordination 
with respect to the international activities of other agencies and 
development entities.
    ``(3) The Deputy Secretary shall act for, and exercise the powers 
of, the Secretary during his absence or disability or during a vacancy 
in the office of the Secretary.''.
    (c) America Desk.--Section 1(c) of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 2651a(c)) is amended to read as 
follows:
    ``(c) America Desk.--(1)(A) The Secretary shall establish and 
maintain staff within the office of the Secretary that shall be 
responsible for ensuring that adequate consideration is afforded to 
United States commercial and business interests in the formulation of 
United States foreign policy.
    ``(B) The staff established under subparagraph (A) may be referred 
to as the `America Desk'.
    ``(2) The America Desk shall also serve as an ombudsman and as a 
point of liaison to United States commercial and economic interests and 
to provide policymakers with input that will help keep policy 
responsive to the needs of United States citizens.
    ``(3) In addition, in the event of certain foreign emergencies or 
crises affecting United States citizens, the America Desk shall help 
energize the Department's resources in a coordinated response.''.
    (d) Resources, Policy, and Planning Staff.--Section 1 of the State 
Department Basic Authorities Act of 1956 (22 U.S.C. 2651a) is amended--
            (1) by striking subsection (e);
            (2) by redesignating subsection (d) as subsection (e); and
            (3) by amending subsection (d) to read as follows:
    ``(d) Resources, Policy, and Planning Staff.--(1) The Secretary 
shall establish and maintain a Resources, Policy, and Planning Staff 
within the office of the Secretary to provide the Secretary, the Deputy 
Secretary of State, and the Under Secretaries of State precise 
information on and recommendations concerning the resource implications 
of foreign policy proposals.
    ``(2) The staff shall be responsible to ensure that the Secretary 
of State has an independent assessment of the budgetary impact of 
foreign policy proposals.''.
    (e) Assumption of Duties by Incumbent Appointees.--An individual 
holding an office immediately prior to the date of enactment of this 
Act--
            (1) who was appointed to the office by the President, by 
        and with the advice and consent of the Senate; and
            (2) who performs duties substantially similar to the duties 
        of an office created or proposed to be created under the 
        amendments of this section,
may, in the discretion of the Secretary of State, assume the duties of 
such new office, and shall not be required to be reappointed by reason 
of the enactment of this section.

SEC. 2472. UNDER SECRETARIES.

    (a) Amendment to the State Department Basic Authorities Act.--The 
State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a et 
seq.) is amended by inserting after section 1 the following new 
section:
``SEC. 1A. UNDER SECRETARIES OF STATE.

    ``(a) In General.--(1) There shall be in the Department of State 
not more than the following five Under Secretaries of State, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate:
            ``(A) The Under Secretary of State for Policy.
            ``(B) The Under Secretary of State for Export, Trade, 
        Economics, and Business.
            ``(C) The Under Secretary of State for International 
        Security.
            ``(D) The Under Secretary of State for Public Diplomacy.
            ``(E) The Under Secretary of State for Management.
    ``(2) The responsibilities of the Under Secretaries of State 
include, but are not limited to, the responsibilities provided for in 
this section.
    ``(b) Under Secretary of State for Policy.--
            ``(1) In general.--There is an Under Secretary of State for 
        Policy.
            ``(2) Responsibilities.--The Under Secretary of State for 
        Policy shall be responsible to the Secretary of State and the 
        Deputy Secretary of State for the following:
                    ``(A) Assisting in the development, implementation, 
                and conduct of foreign policy and foreign assistance 
                policy.
                    ``(B) Determining the policy goals and functions of 
                United States diplomatic missions and ensuring that 
                overall mission staffing reflects policy priorities.
                    ``(C) Ensuring policy coordination of all 
                international programs carried out by the departments 
                and agencies of the Federal Government in the areas 
                within the responsibilities of the Under Secretary.
            ``(3) Office of the under secretary.--There shall be within 
        the Office of the Under Secretary for Policy the Office of 
        Enterprise Fund Coordination which shall ensure that programs 
        of enterprise funds support regional policy goals, are well 
        managed and audited, and are sufficiently capitalized.
    ``(c) Under Secretary of State for Export, Trade, Economics, and 
Business.--
            ``(1) In general.--There is an Under Secretary of State for 
        Export, Trade, Economics, and Business.
            ``(2) Responsibilities.--(A) The Under Secretary of State 
        for Export, Trade, Economics, and Business shall be responsible 
        to the Secretary of State and the Deputy Secretary of State for 
        the following:
                    ``(i) Assisting in the development, implementation, 
                and conduct of foreign policy and foreign assistance 
                policy with respect to export promotion, trade, 
                economics, and business and with respect to science and 
                environmental matters and the oceans.
                    ``(ii) Overseeing international programs with 
                respect to the matters referred to in subparagraph (A) 
                that are carried out by the departments and agencies of 
                the Federal Government other than the Department of 
                State.
            ``(B) The Under Secretary shall be the representative of 
        the Department of State on the Trade Promotion Coordinating 
        Committee established under section 2312 of the Export 
        Enhancement Act of 1988 (15 U.S.C. 4724).
    ``(d) Under Secretary of State for International Security.--
            ``(1) In general.--There is an Under Secretary of State for 
        International Security.
            ``(2) Responsibilities.--The Under Secretary of State for 
        International Security shall be responsible to the Secretary of 
        State and the Deputy Secretary of State for the following:
                    ``(A) Assisting in the development of policy 
                relating to matters of international security, 
                including arms control and nonproliferation, 
                international narcotics and crime control, refugee and 
                migration affairs, emergency humanitarian issues, and 
                foreign assistance issues related thereto.
                    ``(B) Advising on matters of arms control and 
                disarmament, arms sales, and nonproliferation of 
                weapons of mass destruction.
            ``(3) Office of the under secretary.--There shall be within 
        the Office of the Under Secretary of State for International 
        Security--
                    ``(A) the Coordinator for Economic Support Funds-
                Foreign Military Financing, who shall seek to assure 
                that programs under chapter 4 of part II of the Foreign 
                Assistance Act of 1961 and under section 23 of the Arms 
                Export Control Act reflect United States foreign policy 
                objectives; and
                    ``(B) the Coordinator for Counter-Terrorism, who 
                shall develop, coordinate, and oversee the 
                implementation of, the policy of the Department of 
                State to counter acts of international terrorism.
    ``(e) Under Secretary of State for Public Diplomacy.--
            ``(1) In general.--There is an Under Secretary of State for 
        Public Diplomacy.
            ``(2) Responsibilities.--The Under Secretary of State for 
        Public Diplomacy shall be responsible to the Secretary of State 
        and the Deputy Secretary of State for the following:
                    ``(A) Assisting in the development, implementation, 
                and conduct of United States policy on public 
                diplomacy, including international exchange programs 
                and international broadcasting.
                    ``(B) Coordinating international exchange programs 
                that are carried out by departments and agencies of the 
                Federal Government other than the Department of State.
                    ``(C) Disseminating information, including the use 
                and maintenance of electronic information capabilities, 
                such as the wireless file, and library and overseas 
                resource centers.
                            ``(i) providing information to the public 
                        outside the United States on United States 
                        foreign policy and assistance policy; and
                            ``(ii) providing to the Secretary of State 
                        information on public reaction, foreign 
                        attitudes and media reaction to United States 
                        foreign policy.
            ``(3) Office of the under secretary.--There shall be within 
        the office of the Under Secretary of State of Public Diplomacy 
        the Press Office and Spokesperson which shall carry out 
        domestic liaison activities, including authority over the 
        current foreign press centers in the United States.
    ``(f) Under Secretary of State for Management.--
            ``(1) In general.--There is an Under Secretary of State for 
        Management.
            ``(2) Responsibilities.--The Under Secretary of State for 
        Management shall be responsible to the Secretary of State and 
        the Deputy Secretary of State for the following:
                    ``(A) Assisting in the development, implementation, 
                and conduct of policy for the management of the 
                Department of State, including the management of United 
                States diplomatic missions and consular posts abroad.
                    ``(B) Assuring adequate management support for the 
                conduct of United States foreign policy and foreign 
                assistance policy, including personnel staffing levels 
                adequate to support the overall foreign policy 
                objectives.
                    ``(C) Developing and implementing policy on 
                consular programs.''.
    (b) Assumption of Duties by Incumbent Appointees.--An individual 
holding an office immediately prior to the date of enactment of this 
Act--
            (1) who was appointed to the office by the President, by 
        and with the advice and consent of the Senate; and
            (2) who performs duties substantially similar to the duties 
        of an office created or proposed to be created under section 1A 
        of the State Department Basic Authorities Act of 1956,
may, in the discretion of the Secretary of State, assume the duties of 
such new office, and shall not be required to be reappointed by reason 
of the enactment of that section.

SEC. 2473. ASSISTANT SECRETARIES OF STATE.

    (a) Amendment to the State Department Basic Authorities Act.--The 
State Department Basic Authorities Act of 1956 (22 U.S.C. 2651a et 
seq.) is amended by inserting after section 1A, as added by section 
1102, the following new section:

``SEC. 1B. ASSISTANT SECRETARIES OF STATE.

    ``(a) In General.--(1) There shall be in the Department of State 
not more than 20 Assistant Secretaries of State, who shall be appointed 
by the President, by and with the advice and consent of the Senate. The 
responsibilities of the Assistant Secretaries of State include, but are 
not limited to, the responsibilities provided for in this section.
    ``(2) Under each Assistant Secretary of State having regional 
responsibilities described in paragraphs (1) through (6) of subsection 
(b), there should be a Deputy Assistant Secretary of State for Trade, 
and Development Assistance.
    ``(b) Assistant Secretaries Reporting to the Under Secretary of 
State for Policy.--The following Assistant Secretaries of State should 
be subject to the supervision and policy guidance of the Under 
Secretary of State for Policy and should have the following 
responsibilities:
            ``(1) Assistant secretary for inter-american affairs.--
        There should be an Assistant Secretary of State for Inter-
        American Affairs who should assist in the development and 
        implementation of United States foreign policy and foreign 
        assistance policy with respect to the Western Hemisphere.
            ``(2) Assistant secretary for western and central european 
        affairs.--There should be an Assistant Secretary of State for 
        Western and Central European Affairs who should assist in the 
        development and implementation of United States foreign policy 
        and foreign assistance policy with respect to Western and 
        Central Europe.
            ``(3) Assistant secretary for asian and pacific affairs.--
        There should be an Assistant Secretary of State for Asian and 
        Pacific Affairs who should assist in the development and 
        implementation of United States foreign policy and foreign 
        assistance policy with respect to Asia and the Pacific.
            ``(4) Assistant secretary for african affairs.--There 
        should be an Assistant Secretary of State for African Affairs 
        who should assist in the development and implementation of 
        United States foreign policy and foreign assistance policy with 
        respect to Africa.
            ``(5) Assistant secretary for near eastern affairs.--There 
        should be an Assistant Secretary of State for Near Eastern 
        Affairs who should assist in the development and implementation 
        of United States foreign policy and foreign assistance policy 
        with respect to the Near East.
            ``(6) Assistant secretary for eastern europe and central 
        asia affairs.--There should be an Assistant Secretary of State 
        for Eastern Europe and Central Asia Affairs who should assist 
        in the development and implementation of United States foreign 
        policy and foreign assistance policy with respect to Armenia, 
        Azerbaijan, Georgia, Kazakstan, Kyrgyzstan, Russia, Tajikistan, 
        Turkmenistan, and Uzbekistan.
            ``(7) Assistant secretary for international 
        organizations.--There should be an Assistant Secretary for 
        International Organizations who should have the rank and status 
        of Ambassador Extraordinary and Plenipotentiary and who--
                    ``(A) should serve as the Permanent Representative 
                of the United States to the United Nations;
                    ``(B) may serve ex officio as representative of the 
                United States in any organ, commission, or other body 
                of any international organization other than a 
                specialized agency of the United Nations;
                    ``(C) should develop, coordinate, and implement 
                United States policy in the United Nations, specialized 
                agencies, and other international organizations, 
                including United States policy on issues relating to 
                United Nations peacekeeping activities;
                    ``(D) should ensure that the United States 
                participates in international organizations in a 
                consistent fashion; and
                    ``(E) should manage United States participation in 
                multilateral conferences, including accrediting and 
                instructing United States delegations to such 
                conferences and providing representational and 
                logistical support to such delegations.
            ``(8) Assistant secretary for democracy and human rights.--
        There should be an Assistant Secretary of State for Democracy 
        and Human Rights, who should--
                    ``(A) develop, coordinate, and implement United 
                States policy and programs for the promotion of 
                freedom, democracy, respect for human rights, and 
                similar matters around the world;
                    ``(B) support and provide advice to the regional 
                Assistant Secretaries of State referred to in 
                paragraphs (1) through (6) in the promotion of the 
                matters referred to in subparagraph (A);
                    ``(C) serve as liaison with nongovernmental 
                organizations that are active in the promotion of such 
                matters;
                    ``(D) prepare the annual report of the Department 
                of State on human rights practices; and
                    ``(E) advise the Immigration and Naturalization 
                Service on applications by foreign nationals for 
                political asylum in the United States.
    ``(c) Assistant Secretaries Reporting to the Under Secretary of 
State for Export, Trade, Economics, and Business.--The following 
Assistant Secretaries of State should be subject to the supervision and 
policy guidance of the Under Secretary of State for Export, Trade, 
Economics, and Business and should have the following responsibilities:
            ``(1) Assistant secretary for economics and business 
        affairs.--
                    ``(A) In general.--There should be an Assistant 
                Secretary of State for Economics and Business Affairs 
                who should--
                            ``(i) develop, coordinate, and implement 
                        United States international economic policy, 
                        including resource and food policy, energy 
                        policy, trade policy, policy with respect to 
                        economic sanctions, and policy for the 
                        promotion of a stable and open international 
                        financial system;
                            ``(ii) ensure that United States economic 
                        and commercial interests are given appropriate 
                        weight in the development and implementation of 
                        United States foreign policy;
                            ``(iii) negotiate agreements for the 
                        purposes of promoting United States business 
                        abroad, improving the economic competitiveness 
                        of United States business abroad, and 
                        facilitating United States business activities 
                        abroad; and
                            ``(iv) advise other bureaus and elements of 
                        the Department of State on economic policy 
                        issues relating to the matters set forth in 
                        clauses (i) through (iii).
                    ``(B) Office of the assistant secretary.--There 
                should be within the Office of the Assistant Secretary 
                of State for Economic and Business Affairs the Office 
                of Telecommunications and Aviation. The office should--
                            ``(i) develop, coordinate, and implement 
                        policy on issues relating to international 
                        telecommunications, international information 
                        utilization and exchange, and international 
                        aviation and maritime matters;
                            ``(ii) consult with and coordinate the 
                        activities of the other departments and 
                        agencies of the Federal Government with respect 
                        to the policy referred to in clause (i); and
                            ``(iii) conduct negotiations with foreign 
                        governments and international organizations 
                        with respect to such policy.
            ``(2) Assistant secretary for oceans and environmental and 
        science affairs.--There should be an Assistant Secretary of 
        State for Oceans
         and Environmental and Science Affairs who should develop, 
coordinate, and implement policy on the scientific and technological 
facets of the relations of the United States with foreign governments 
and international organizations and on matters relating to the 
environment, the oceans, fishing, and space.
    ``(d) Assistant Secretaries Reporting to the Under Secretary of 
State for International Security.--The following Assistant Secretaries 
of State should be subject to the supervision and policy guidance of 
the Under Secretary of State for International Security and should have 
the following responsibilities:
            ``(1) Assistant secretary for arms control and non-
        proliferation affairs.--(A) There shall be an Assistant 
        Secretary of State for Arms Control and Non-Proliferation 
        Affairs who shall--
                    ``(i) develop and coordinate policy on non-
                proliferation of weapons of mass destruction (including 
                nuclear, chemical, and biological weapons and missile 
                technology) and nuclear and conventional arms control; 
                and
                    ``(ii) prepare for and operate United States 
                participation in international control systems that may 
                result from United States arms control activities.
            ``(B) Deputy assistant secretaries.--(i) There shall be 
        four Deputy Assistant Secretaries of State who shall report to 
        the Assistant Secretary of State for Arms Control and Non-
        Proliferation Affairs for the following matters, respectively:
                    ``(I) Verification of compliance with arms control 
                agreements (including memoranda of understanding).
                    ``(II) Conventional arms control.
                    ``(III) Nuclear nonproliferation.
                    ``(IV) Control of weapons of mass destruction.
            ``(ii) One such Deputy Assistant Secretary shall serve as 
        the principal Deputy to the Assistant Secretary.
            ``(2) Assistant secretary for international narcotics and 
        law enforcement affairs.--There should be an Assistant 
        Secretary of State for International Narcotics and Law 
        Enforcement Affairs who should--
                    ``(A) develop, coordinate, and implement 
                international narcotics assistance activities delegated 
                to the Secretary of State under chapter 8 of part I of 
                the Foreign Assistance Act of 1961 (22 U.S.C. 2291 et 
                seq.);
                    ``(B) serve as principal point of contact and 
                provide advice on international narcotics control 
                matters for the Office of Management and Budget, the 
                National Security Council, and the Executive Office of 
                the President to ensure implementation of United States 
                policy in narcotics matters; and
                    ``(C) carry out international law enforcement 
                activities of the Department of State under the 
                International Narcotics Control Correction Act of 1994, 
                including--
                            ``(i) promoting law enforcement and policy 
                        initiatives bilaterally or multilaterally which 
                        are of high priority to the national interest 
                        of the United States;
                            ``(ii) promoting improved coordination 
                        among United States policy and law enforcement 
                        agencies for their activities outside the 
                        United States; and
                            ``(iii) developing law enforcement training 
                        programs to strengthen and stabilize 
                        democracies throughout the world.
            ``(3) Assistant secretary for political-military affairs.--
        There should be an Assistant Secretary of State for Political-
        Military Affairs who should--
                    ``(A) serve as the Department's primary liaison 
                with the Department of Defense;
                    ``(B) seek to further United States national 
                security objectives by--
                            ``(i) stabilizing regional military 
                        balances through negotiations and security 
                        assistance;
                            ``(ii) maintaining global access for United 
                        States military forces;
                            ``(iii) inhibiting the access by 
                        adversaries to militarily significant 
                        technologies; and
                            ``(iv) promoting responsible United States 
                        defense trade; and
                    ``(C) coordinate with the Department of Defense on 
                issues involving United States participation in United 
                Nations peacekeeping activities.
            ``(4) Assistant secretary for humanitarian assistance, 
        refugees, and migration affairs.--There should be an Assistant 
        Secretary of State for Humanitarian Assistance, Refugees, and 
        Migration Affairs who should--
                    ``(A) recommend and implement policy on 
                humanitarian assistance and refugee and migration 
                affairs;
                    ``(B) operate United States refugee programs 
                abroad, carried out in cooperation with other 
                governments, private and international organizations, 
                and other United States government agencies;
                    ``(C) carry out programs relating to the relief and 
                repatriation of refugees, and the selection and 
                processing of refugees to be admitted to the United 
                States;
                    ``(D) implement abroad United States programs for 
                disaster preparedness, relief, and rehabilitation, 
                incorporating activities previously carried out by the 
                Office of Foreign Disaster Assistance of the Agency for 
                International Development; and
                    ``(E) function as primary coordination point for 
                United States' international humanitarian emergency 
                response efforts.
    ``(e) Assistant Secretaries Reporting to the Under Secretary of 
State for Public Diplomacy.--Except as provided in paragraph (2), the 
following Assistant Secretary of State and officials of the Department 
of State should be subject to the supervision and policy guidance of 
the Under Secretary of State for Public Diplomacy and should have the 
following responsibilities:
            ``(1) Assistant secretary for international exchanges.--
                    ``(A) In general.--There shall be an Assistant 
                Secretary of State for International Exchanges who 
                shall--
                            ``(i) administer programs carried out under 
                        the Mutual Educational and Cultural Exchange 
                        Act of 1961 (Public Law 87-256) so as to ensure 
                        that such programs support United States 
                        interests abroad and reflect the values of the 
                        people of the United States;
                            ``(ii) develop and implement policy for, 
                        and provide professional guidance, materials, 
                        and other program support to, the libraries and 
                        binational centers of the Department of State 
                        abroad;
                            ``(iii) administer fine arts programs and 
                        performing arts programs abroad, including 
                        arranging for tours abroad of
                         United States performing arts groups and fine 
arts exhibitions; and
                            ``(iv) develop and implement other programs 
                        in support of United States interests abroad, 
                        including programs for the identification and 
                        recruitment of individuals to speak of such 
                        interests abroad and for establishing links 
                        between United States and foreign cultural 
                        institutions.
                    ``(B) Office of the assistant secretary.--There 
                shall be within the Office of the Assistant Secretary 
                of State for International Exchanges the Office of 
                Program Coordination. The Secretary of State, acting 
                through the Office, shall be responsible for tracking 
                identification and coordination of all United States 
                Government sponsored nonmilitary international exchange 
                programs. The Office shall be charged to identify and 
                make recommendations to the President on programs that 
                are duplicative and, therefore, should be eliminated.
            ``(2) Chairman of the broadcasting board of governors and 
        the director of the international broadcasting office.--The 
        Chairman of the Broadcasting Board of Governors and the 
        Director of the International Broadcasting Office shall have 
        the responsibilities set forth for those positions in title III 
        of the Foreign Relations Authorization Act, Fiscal Years 1994 
        and 1995.
    ``(f) Assistant Secretaries Reporting to the Under Secretary of 
State for Management.--The following Assistant Secretaries of State 
should be subject to the supervision and policy guidance of the Under 
Secretary of State for Management and should have the following 
responsibilities:
            ``(1) Assistant secretary for consular affairs.--There 
        should be an Assistant Secretary of State for Consular Affairs 
        who should develop, coordinate, and implement policy relating 
        to the protection and welfare of United States citizens and 
        interests abroad, the issuance of passports and visas, and the 
        provision of other consular services.
            ``(2) Assistant secretary for administration.--There should 
        be an Assistant Secretary of State for Administration who 
        should--
                    ``(A) develop, coordinate, and implement policy, 
                programs, and activities for the provision of 
                administrative support for the Department of State, 
                including support for building operations of the 
                Department in the United States and abroad, support for 
                information management, support for telecommunications, 
                support for the Diplomatic Contingency Program of the 
                Department, support for travel abroad by the President 
                and the Vice President, and support for schools for 
                dependents of Department personnel abroad;
                    ``(B) manage acquisition activities of the 
                Department in the United States;
                    ``(C) oversee acquisition activities of the 
                Department abroad;
                    ``(D) ensure the provision of supply and 
                transportation services to the Department; and
                    ``(E) ensure the provision of language services for 
                the Secretary of State, the Executive Office of the 
                President, and other officials of the Federal 
                Government.
            ``(3) Assistant secretary for diplomatic security.--There 
        should be an Assistant Secretary of State for Diplomatic 
        Security who should--
                    ``(A) develop, coordinate, and implement policy for 
                the purpose of ensuring the security of personnel who 
                conduct United States diplomacy and promote United 
                States interests abroad;
                    ``(B) assign security personnel to posts abroad for 
                the purpose referred to in subparagraph (A);
                    ``(C) carry out the duties set forth in the Omnibus 
                Diplomatic Security Act of 1986 (22 U.S.C. 4801 et 
                seq.); and
                    ``(D) administer through the Office of Foreign 
                Missions, the authorities relating to the regulation of 
                foreign missions under title II of this Act.
    ``(g) Positions Reporting to the Secretary of State.--There should 
be in the Department of State, the following officials who should be 
appointed by the President, by and with the advice and consent of the 
Senate, and who should report to the Secretary of State and who should 
have the following responsibilities:
            ``(1) Assistant secretary of state for intelligence and 
        strategic plans.--There should be an Assistant Secretary of 
        State for Intelligence and Strategic Plans, who should--
                    ``(A) provide the Secretary, the Deputy Secretary, 
                and Department principals with intelligence 
                information, briefings, analysis, and
                 coordination necessary to carry out the President's 
foreign policy;
                    ``(B) serve as primary adviser to the Secretary of 
                State and intelligence briefer for senior Department 
                policymakers;
                    ``(C) undertake strategic (medium- and long-term) 
                policy studies and analyses, and keep policymakers 
                aware of strategic trends in areas of current or 
                potential policy interest''; and
                    ``(D) provide the intelligence community guidance 
                as necessary to help ensure products are focused 
                adequately to support policymakers.
            ``(2) Assistant secretary of state for legislative 
        affairs.--There should be an Assistant Secretary of State for 
        Legislative Affairs, who should--
                    ``(A) supervise and coordinate all foreign affairs-
                related legislative activities within the Department of 
                State and among the Department, Congress, and other 
                agencies;
                    ``(B) supervise and coordinate all personnel of the 
                Department who are designated or assigned legislative 
                responsibilities and who should report to the Assistant 
                Secretary of State for Legislative Affairs;
                    ``(C) ensure that congressional perspectives are 
                considered in the foreign policymaking process, that 
                the administration's views are accurately presented to 
                Congress, and that a coordinated legislative strategy 
                is implemented by executive branch agencies; and
                    ``(D) be responsible for rating and reviewing all 
                employees of any bureau whose duties comprise primarily 
                of legislative matters.''.
    (b) Assumption of Duties by Incumbent Appointees.--An individual 
holding an office immediately prior to the date of enactment of this 
Act--
            (1) who was appointed to the office by the President, by 
        and with the advice and consent of the Senate; and
            (2) who performs duties substantially similar to the duties 
        of an office created or proposed to be created under section 1B 
        of the State Department Basic Authorities Act of 1956,
may, in the discretion of the Secretary of State, assume the duties of 
such new office, and shall not be required to be reappointed by reason 
of the enactment of that section.

SEC. 2474. OTHER STATE DEPARTMENT POSITIONS.

    (a) Amendment to State Department Basic Authorities Act.--Section 
1B of the State Department Basic Authorities Act of 1956, as added by 
this Act, is amended by adding at the end the following new section:

``SEC. 1C. OTHER STATE DEPARTMENT POSITIONS.

    ``(a) General Counsel.--
            ``(1) There should be a General Counsel, who should be 
        appointed by the President, by and with the advice and consent 
        of the Senate, who should be paid at the rate provided for 
        positions at level IV of the Executive Schedule, and who 
        should--
                    ``(A) serve as principal adviser to the Secretary 
                and, through the Secretary, to the President on all 
                matters of international law arising in the conduct of 
                United States foreign relations; and
                    ``(B) provide general legal advice and services to 
                the Secretary and other officials of the Department on 
                matters with which the Department and overseas posts 
                are concerned.
            ``(2) The General Counsel should assume the functions 
        previously exercised by the Legal Adviser.
    ``(b) Positions Reporting to the Under Secretary of State for 
Management.--The following officials within the Department of State 
should report directly to the Under Secretary of State for Management:
            ``(1) Chief financial officer.--There is in the Department 
        of State a Chief Financial Officer who is appointed and paid in 
        accordance with section 901 of title 31, United States Code, 
        and who shall--
                    ``(A) serve as the Department's Budget Officer and 
                shall manage the financial affairs of the Department, 
                consistent with section 902 of title 31, United States 
                Code;
                    ``(B) ensure adequate systems within the Department 
                for the production of reliable and timely financial and 
                related programmatic information;
                    ``(C) develop financial analysis and performance 
                reports regarding the activities of the Department; and
                    ``(D) integrate functions of the Department related 
                to budget execution and financial accounting.
            ``(2) Director general of the foreign service.--There 
        should be a Director General of the Foreign Service who should 
        be appointed by the President, by and with the advice and 
        consent of the
         Senate, and who should be paid at the rate of pay provided for 
positions at level IV of the Executive Schedule. The Director General 
should--
                    ``(A) act as principal advisor to the Secretary of 
                State on all matters relating to the Foreign Service, 
                including matters relating to recruitment, training, 
                professional development, assignment, and utilization 
                of Foreign Service personnel;
                    ``(B) provide joint training for all such personnel 
                and ensure the assignment of such personnel to 
                positions that require and provide experience in a 
                variety of disciplines; and
                    ``(C) perform such functions in connection with the 
                administration of the Foreign Service as the Secretary 
                of State may prescribe.
            ``(3) Director of personnel.--There should be within the 
        Department of State a Director of Personnel who should be 
        appointed by the President, by and with the advice and consent 
        of the Senate, and who should be paid at the rate of pay 
        provided for positions at level IV of the Executive Schedule. 
        The Director of Personnel should--
                    ``(A) implement policies and programs for personnel 
                of the Department of State, including personnel under 
                the Civil Service system, personnel under the Foreign 
                Service System (in consultation with the Director 
                General for the Foreign Service), and personnel who are 
                Foreign Service National employees; and
                    ``(B) oversee activities of the National Center for 
                Humanities, Education, Languages, and Management 
                Studies.''.
    (b) Conforming Repeal.--Section 208 of the Foreign Service Act of 
1980 (22 U.S.C. 3928), relating to the Director General of the Foreign 
Service, is repealed.
    (c) Assumption of Duties by Incumbent Appointees.--An individual 
holding an office immediately prior to the date of enactment of this 
Act--
            (1) who was appointed to the office by the President, by 
        and with the advice and consent of the Senate; and
            (2) who performs duties substantially similar to the duties 
        of an office created or proposed to be created under section 1C 
        of the State Department Basic Authorities Act of 1956,
may, at the discretion of the Secretary of State, assume the duties of 
such new office, and shall not be required to be reappointed by reason 
of the enactment of that section.

SEC. 2475. INSPECTOR GENERAL FOR FOREIGN AFFAIRS.

    (a) Term of Service; Limitation on Appointment.--Section 209(a)(1) 
of the Foreign Service Act of 1980 (22 U.S.C. 3929) is amended--
            (1) in the first sentence, by striking ``Inspector General 
        of the Department of State and the Foreign Service'' and 
        inserting ``Inspector General for Foreign Affairs''; and
            (2) by inserting after the first sentence the following new 
        sentences: ``The Inspector General shall serve a term of six 
        years. The Inspector General may be reappointed by the 
        President, by and with the advice and consent of the Senate, 
        for an additional term or terms of six years each. No career 
        member of the Foreign Service, as defined in section 103, may 
        be appointed Inspector General.''.
    (b) Redesignation of Inspector General of the Department of State 
As Inspector General for Foreign Affairs.--(1) The Inspector General 
Act of 1978 (5 U.S.C. App. 3) is amended--
            (A) by redesignating section 8G (as added by section 104(a) 
        of Public Law 100-504) and section 8G (as added by section 105 
        of Public Law 100-504) as sections 8H and 8I, respectively; and
            (B) by inserting after section 8F the following:
  ``special provisions relating to the inspector general for foreign 
                                affairs

    ``Sec. 8G. In addition to the other duties and responsibilities 
specified in this Act, the Inspector General of the Department of State 
(also known as the `Inspector General for Foreign Affairs') shall 
exercise the authorities of section 209 of the Foreign Service Act of 
1980 (including authorities with respect to the Broadcasting Board of 
Governors).''.
    (2) Section 5315 of title 5, United States Code, is amended by 
striking ``Inspector General, Department of State'' and inserting 
``Inspector General for Foreign Affairs, Department of State''.
    (3) Section 413 of the Omnibus Diplomatic Security and 
Antiterrorism Act of 1986 (22 U.S.C. 4861) is repealed.
    (c) Repeal Relating to the Inspector General for the United States 
Arms Control and Disarmament Agency.--Section 50 of the Arms Control 
and Disarmament Act (22 U.S.C. 2593a), relating to the ACDA Inspector 
General, is repealed.
    (d) Conforming Amendments Relating to the Inspector General of the 
United States Information Agency.--(1) Section 11 of the Inspector 
General Act of 1978 (5 U.S.C. App. 3) is amended--
            (A) in paragraph (1), by striking ``or the United States 
        Information Agency''; and
            (B) in paragraph (2), by striking ``the United States 
        Information Agency,''.
    (2) Section 5315 of title 5, United States Code, is amended by 
striking ``Inspector General, United States Information Agency.''
    (e) Conforming Amendments and Repeal Relating to the Inspector 
General of the Agency for International Development.--(1) Section 11 of 
the Inspector General Act of 1978 (5 U.S.C. App. 3) is amended--
            (A) in paragraph (1), by striking ``Agency for 
        International Development,''; and
            (B) in paragraph (2), by striking ``the Agency for 
        International Development,''.
    (2) Section 239(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2199(e)) is amended by striking ``Inspector General of the Agency for 
International Development'' and inserting ``Inspector General for 
Foreign Affairs''.
    (3) Section 8A of the Inspector General Act of 1978 (5 U.S.C. App. 
3) is repealed.
    (4) Section 5315 of title 5, United States Code, is amended by 
striking ``Inspector General, Agency for International Development.''.
    (f) Assumption of Duties by Incumbent Appointee.--An individual 
holding the office of Inspector General of the Department of State 
immediately prior to the effective date contained in subsection 
(g)(4)--
            (1) who was appointed to the office by the President, by 
        and with the advice and consent of the Senate; and
            (2) who performs duties substantially similar to the duties 
        of an office created under the amendments made by subsections 
        (a) and (b),
may, in the discretion of the Secretary of State, assume the duties of 
such new office, and shall not be required to be reappointed by reason 
of the enactment of this section.
    (g) Effective Dates.--The following shall be the effective dates 
for amendments and repeals made by this section:
            (1) The repeal made by subsection (c), on the effective 
        date of title XII.
            (2) The amendments made by subsection (d), on the effective 
        date of title XIII.
            (3) The amendments and repeal made by subsection (e), on 
        the effective date of title XIV.
            (4) The amendments and repeal made by subsections (a) and 
        (b), on the effective date of title XII, title XIII, or title 
        XIV, whichever occurs first.

SEC. 2476. RATES OF PAY.

    (a) Under Secretaries of State.--Section 5314 of title 5, United 
States Code, is amended by striking ``Under Secretaries of State (5).'' 
and inserting the following:
            ``Under Secretary of State for Policy.
            ``Under Secretary of State for Export, Trade, Economics, 
        and Business.
            ``Under Secretary of State for International Security.
            ``Under Secretary of State for Public Diplomacy.
            ``Under Secretary of State for Management.''.
    (b) Assistant Secretaries of State.--Section 5315 of such title is 
amended by striking out ``20 Assistant Secretaries of State and 4 other 
State Department officials to be appointed by the President by and with 
the advice and consent of the Senate.'' and inserting the following:
            ``In addition to other positions of the Department of State 
        specifically referenced in this section, 18 Assistant 
        Secretaries of State and 4 other State Department officials who 
        are appointed by the President, by and with the advice and 
        consent of the Senate.
            ``Assistant Secretary of State for Arms Control and Non-
        Proliferation Affairs.
            ``Assistant Secretary of State for International 
        Exchanges.''.

SEC. 2477. REPEAL OF PREVIOUSLY CREATED STATE DEPARTMENT POSITIONS.

    (a) Assistant Secretary for Oceans and International Environmental 
and Scientific Affairs.--Section 9(a) of the Department of State 
Appropriations Authorization Act of 1973 (22 U.S.C. 2655a(a)) is 
repealed.
    (b) Conforming Amendments Relating to the Assistant Secretary for 
Democracy, Human Rights, and Labor.--The Foreign Assistance Act of 1961 
is amended--
            (1) in section 116(c) (22 U.S.C. 2151n(c)), by striking 
        ``Assistant Secretary of State for Democracy, Human Rights, and 
        Labor'' and inserting ``Secretary'';
            (2) in sections 502B(b) (22 U.S.C. 2304(b)), 502B(c)(1) (22 
        U.S.C. 2304(c)), and 505(g)(4)(A) (22 U.S.C. 2314(g)(4)(A)), by 
        striking ``, prepared with the assistance of the Assistant 
        Secretary of State for Democracy, Human Rights, and Labor,'' 
        each place it appears; and
            (3) in section 573(c) (22 U.S.C. 2349aa-2(c)), by striking 
        ``Assistant Secretary of State for Democracy, Human Rights, and 
        Labor'' and inserting ``Secretary of State''.
    (c) Assistant Secretary for South Asian Affairs.--Subsections (a), 
(b), and (e) of section 122 of the Foreign Relations Authorization Act, 
Fiscal Years 1992 and 1993 (22 U.S.C. 2652b) are repealed.
    (d) Deputy Assistant Secretary for Burdensharing.--Section 161(f) 
of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 
(22 U.S.C. 2651a note) is repealed.
SEC. 2478. LIMITATION ON PERSONNEL STRENGTH OF THE DEPARTMENT OF STATE.

    (a) End Fiscal Year 1996 Levels.--The number of employees of the 
Department of State (including members of the Foreign Service) who are 
authorized to be employed as of February 28, 1997, shall not exceed a 
number which is 9 percent less than the number of such employees who 
are so employed immediately prior to the date of enactment of this Act.
    (b) End Fiscal Year 1997 Levels.--The number of employees of the 
Department of State (including members of the Foreign Service) who are 
authorized to be employed as of September 30, 1997, shall not exceed a 
number which is 3 percent less than the number of such employees who 
are authorized to be so employed as of February 28, 1997.
    (c) End Fiscal Year 1998 Levels.--The number of employees of the 
Department of State (including members of the Foreign Service) who are 
authorized to be employed as of September 30, 1998, shall not exceed a 
number which is 2 percent less than the number of such employees who 
are authorized to be so employed as of September 30, 1997.
SEC. 2479. CONSOLIDATION OF UNITED STATES DIPLOMATIC MISSIONS AND 
              CONSULAR POSTS.

    (a) Consolidation Plan.--The Secretary of State shall develop a 
worldwide plan for the consolidation, wherever practicable, on a 
regional or areawide basis, of United States missions and consular 
posts abroad in order to carry out this section.
    (b) Contents of Plan.--The plan shall--
            (1) identify the specific United States diplomatic missions 
        and consular posts for consolidation;
            (2) identify those missions and posts at which the resident 
        ambassador would also be accredited to other specified states 
        in which the United States either maintained no resident 
        official presence or maintained such a presence only at staff 
        level; and
            (3) provide an estimate of--
                    (A) the amount by which expenditures would be 
                reduced through the reduction in the number of United 
                States Government personnel assigned abroad;
                    (B) the amount by which expenditures would be 
                reduced through a reduction in the costs of maintaining 
                United States properties abroad; and
                    (C) the amount of revenues generated to the United 
                States through the sale or other disposition of United 
                States properties associated with the posts to be 
                consolidated abroad.
    (c) Transmittal.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of State shall transmit a copy of 
the plan to the appropriate congressional committees.
    (d) Implementation.--Not later than 60 days after transmittal of 
the plan under subsection (c), the Secretary of State shall take steps 
to implement the plan unless the Congress before such date enacts 
legislation disapproving the plan.
    (e) Congressional Priority Procedures.--(1) A joint resolution 
described in paragraph (2) which is introduced in a House of Congress 
after the date on which a plan developed under subsection (a) is 
received by Congress, shall be considered in accordance with the 
procedures set forth in paragraphs (3) through (7) of section 8066(c) 
of the Department of Defense Appropriations Act, 1985 (as contained in 
Public Law 98-473 (98 Stat. 1936)), except that--
            (A) references to the ``report described in paragraph (1)'' 
        shall be deemed to be references to the joint resolution; and
            (B) references to the Committee on Appropriations of the 
        House of Representatives and to the Committee on Appropriations 
        of the Senate shall be deemed to be references to the Committee 
        on International Relations of the House of Representatives and 
        the Committee on Foreign Relations of the Senate.
    (2) A joint resolution under this paragraph is a joint resolution 
the matter after the resolving clause of which is as follows: ``That 
the Congress disapproves the plan submitted by the President on 
____________ pursuant to
 section 2409 of the Restructuring a Limited Government Act.''.
    (f) Withholding of Funds.--Effective 180 days after the date of 
enactment of this Act, if the plan was not timely transmitted pursuant 
to subsection (c), then five percent of the funds made available for 
the Department of State for each of the fiscal years 1996, 1997, 1998, 
and 1999 under the account ``Diplomatic and Consular Programs'' 
(``Administration of Foreign Affairs'') shall be withheld from 
obligation and expenditure until 60 days after the President transmits 
to Congress a revised plan developed under subsection (a).
    (g) Resubmission of Plan.--If, within 60 days of transmittal of a 
plan under subsection (c), Congress enacts legislation disapproving the 
plan, the President shall transmit to the appropriate congressional 
committees a revised plan developed under subsection (a).
    (h) Statutory Construction.--Nothing in this section requires the 
termination of United States diplomatic or consular relations with any 
foreign country.
    (i) Definitions.--As used in this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            (2) Plan.--The term ``plan'' means the plan developed under 
        subsection (a).

SEC. 2480. DETAIL OF OTHER AGENCY PERSONNEL TO STATE DEPARTMENT.

    Any employee of any agency other than the Department of State who 
is assigned to an overseas post located within any United States 
mission except for those assigned to a military command shall be 
detailed to the Department of State for the duration of such 
assignment, and shall be fully under the authority of the Chief of 
Mission. The Chief of Protocol, at the sole discretion of the Secretary 
of State, shall accord diplomatic titles, privileges, and immunities to 
any such employees as the Secretary of State deems appropriate.

SEC. 2481. REPORT ON UNIFICATION OF UNITED STATES AND FOREIGN 
              COMMERCIAL SERVICE AND FOREIGN AGRICULTURAL SERVICE 
              WITHIN THE FOREIGN SERVICE.

    (a) Requirement.--Not later than 120 days after the date of the 
enactment of this Act, the President shall, in coordination with the 
Secretary of State, the Secretary of Commerce, and the Secretary of 
Agriculture shall jointly transmit to Congress the report described in 
subsection (b).
    (b) Report Elements.--The report under subsection (a) shall include 
the following:
            (1) An assessment of the extent of the coordination and 
        cooperation in international activities of the Department of 
        State, the Department of Commerce, and the Department of 
        Agriculture.
            (2) An assessment of the advisability and desirability of 
        establishing in the Foreign Service of the Department of State 
        a core discipline relating to the commercial, trade 
        development, and export promotion activities of the United 
        States.
            (3) If such a core discipline is desirable--
                    (A) a discussion of the options for establishing 
                the core discipline, including--
                            (i) the integration of the United States 
                        and Foreign Commercial Service and the Foreign 
                        Agricultural Service into the Foreign Service; 
                        and
                            (ii) the continuation of the United States 
                        and Foreign Commercial Service and the Foreign 
                        Agricultural Service as separate services; and
                    (B) an assessment of the advantages and 
                disadvantages (including the costs and savings) of each 
                such option.
            (4) If such a core discipline is not desirable, an 
        assessment of the advisability and desirability of the 
        continuing application of the Foreign Service Act of 1980 to 
        the United States and Foreign Commercial Service and the 
        Foreign Agricultural Service.
               TITLE III--SCIENCE, SPACE, AND TECHNOLOGY
            Subtitle A--Administrative and Research Savings

SEC. 3001. NUCLEAR ENERGY RESEARCH AND DEVELOPMENT.

    There are authorized to be appropriated to the Secretary of Energy 
for carrying out the Department's nuclear energy research and 
development activities--
            (1) $331,000,000 for fiscal year 1996;
            (2) $331,000,000 for fiscal year 1997;
            (3) $331,000,000 for fiscal year 1998;
            (4) $331,000,000 for fiscal year 1999; and
            (5) $331,000,000 for fiscal year 2000.

SEC. 3002. NATIONAL SCIENCE FOUNDATION GRANT APPLICATION FEE.

    The National Science Foundation shall require that any application 
for a grant submitted to it be accompanied by a $50 application fee, 
which shall be deposited in the general fund of the Treasury.

SEC. 3003. HIGH PERFORMANCE COMPUTING PROGRAM.

    The total amount which may be appropriated for all activities under 
the High Performance Computing Act of 1991 shall not exceed 
$865,500,000 for each of the fiscal years 1996 through 2000.

                  Subtitle B--Specific Program Reforms

SEC. 3011. NATIONAL SCIENCE FOUNDATION.

    There are authorized to be appropriated to the National Science 
Foundation for all activities of the National Science Foundation--
            (1) $337,620,000 for fiscal year 1996;
            (2) $344,372,400 for fiscal year 1997;
            (3) $351,259,848 for fiscal year 1998;
            (4) $358,285,044 for fiscal year 1999; and
            (5) $365,450,754 for fiscal year 2000.
SEC. 3012. SPACE STATION.

    The Administrator of the National Aeronautics and Space 
Administration may not enter into any contract in furtherance of a 
space station program. This section shall cease to be effective after 
September 30, 1999.
SEC. 3013. CANCELLATION OF NATIONAL AEROSPACE PLANE.

    The Secretary of Defense and the Administrator of the National 
Aeronautics and Space Administration shall cancel the National 
Aerospace Plane program. No amount may be obligated for that program 
after the date of the enactment of this Act, except for required 
contract termination costs.
                            TITLE IV--ENERGY
            Subtitle A--Abolishment of Department of Energy

SEC. 4001. SHORT TITLE.

    This subtitle may be cited as the ``Department of Energy 
Abolishment Act''.
             CHAPTER 1--ABOLISHMENT OF DEPARTMENT OF ENERGY

SEC. 4011. REESTABLISHMENT OF DEPARTMENT AS ENERGY PROGRAMS RESOLUTION 
              AGENCY.

    (a) Reestablishment.--The Department of Energy is hereby 
redesignated as the Energy Programs Resolution Agency, which shall be 
an independent agency in the executive branch of the Government.
    (b) Administrator.--
            (1) In general.--There shall be at the head of the Agency 
        an Administrator of the Agency, who shall be appointed by the 
        President, by and with the advice and consent of the Senate. 
        The Agency shall be administered under the supervision and 
        direction of the Administrator. The Administrator shall receive 
        compensation at the rate prescribed for level II of the 
        Executive Schedule under section 5313 of title 5, United States 
        Code.
            (2) Initial appointment of administrator.--Notwithstanding 
        any other provision of this subtitle or any other law, the 
        President may, at any time after the date of the enactment of 
        this Act, appoint an individual to serve as Administrator of 
        the Energy Programs Resolution Agency (who may be the Secretary 
        of Energy), as such position is established under paragraph 
        (1). An appointment under this paragraph may not be construed 
        to affect the position of Secretary of Energy or the authority 
        of the Secretary before the effective date specified in section 
        4019(a).
    (c) Duties.--The Administrator shall be responsible for--
            (1) the administration and wind-up, during the wind-up 
        period, of all functions of the Administrator pursuant to 
        section 4012 and the other provisions of this subtitle;
            (2) the administration and wind-up, during the wind-up 
        period, of any outstanding obligations of the Federal 
        Government under any programs terminated or repealed by this 
        subtitle; and
            (3) taking such other actions as may be necessary, before 
        the termination date, to wind up any outstanding affairs of the 
        Department of Energy.

SEC. 4012. FUNCTIONS.

    Except as otherwise provided in this subtitle, the Administrator 
shall perform all functions that, immediately before the effective date 
of this section, were functions of the Department of Energy (or any 
office of the Department) or were performed by the Secretary of Energy 
or any other officer or employee of the Department in the capacity as 
such officer or employee.

SEC. 4013. DEPUTY ADMINISTRATOR.

    The Agency shall have a Deputy Administrator, who shall--
            (1) be appointed by and report to the Administrator; and
            (2) shall perform such functions as may be delegated by the 
        Administrator.

SEC. 4014. CONTINUATION OF SERVICE OF DEPARTMENT OFFICERS.

    (a) Continuation of Service of Secretary.--The individual serving 
on the effective date specified in section 4019(a) as the Secretary of 
Energy may serve and act as Administrator until the date an individual 
is appointed under this chapter to the position of Administrator, or 
until the end of the 120-day period provided for in section 3348 of 
title 5, United States Code (relating to limitations on the period of 
time a vacancy may be filled temporarily), whichever is earlier.
    (b) Continuation of Service of Other Officers.--An individual 
serving on the effective date specified in section 4019(a) as an 
officer of the Department of Energy other than the Secretary of Energy 
may continue to serve and act in an equivalent capacity in the Agency 
until the date an individual is appointed under this chapter to the 
position of Administrator, or until the end of the 120-day period 
provided for in section 3348 of title 5, United States Code (relating 
to limitations on the period of time a vacancy may be filled 
temporarily) with respect to that appointment, whichever is earlier.
    (c) Compensation for Continued Service.--Any person--
            (1) who acts as the Administrator under subsection (a), or
            (2) who serves under subsection (b),
after the effective date specified in section 4019(a) and before the 
first appointment of a person as Administrator shall continue to be 
compensated for so serving at the rate at which such person was 
compensated before such effective date.

SEC. 4015. REORGANIZATION.

    The Administrator may allocate or reallocate any function of the 
Agency pursuant to this subtitle among the officers of the Agency, and 
may establish, consolidate, alter, or discontinue in the Energy 
Programs Resolution Agency any organizational entities that were 
entities of the Department of Energy, as the Administrator considers 
necessary or appropriate.

SEC. 4016. ABOLISHMENT OF ENERGY PROGRAMS RESOLUTION AGENCY.

    (a) In General.--Effective on the termination date under subsection 
(d), the Energy Programs Resolution Agency is abolished.
    (b) Abolition of Functions.--Except for functions transferred or 
otherwise continued by this subtitle, all functions that, immediately 
before the termination date, were functions of the Energy Programs 
Resolution Agency are abolished effective on the termination date.
    (c) Plan for Winding Up Affairs.--Not later than the effective date 
specified in section 4019(a), the President shall submit to the 
Congress a plan for winding up the affairs of the Agency in accordance 
with this subtitle and not by later than the termination date under 
subsection (d).
    (d) Termination Date.--The termination date under this subsection 
is the date that is 3 years after the date of the enactment of this 
Act.
SEC. 4017. GAO REPORT.

    Not later than 180 days after the date of enactment of this Act, 
the Comptroller General of the United States shall submit to the 
Congress a report which shall include recommendations for the most 
efficient means of achieving, in accordance with this subtitle--
            (1) the complete abolishment of the Department of Energy; 
        and
            (2) the termination or transfer or other continuation of 
        the functions of the Department of Energy.

SEC. 4018. CONFORMING AMENDMENTS.

    (a) Presidential Succession.--Section 19(d)(1) of title 3, United 
States Code, is amended by striking ``Secretary of Energy,''.
    (b) Executive Departments.--Section 101 of title 5, United States 
Code, is amended by striking the following item:
            ``The Department of Energy.''.
    (c) Secretary's Compensation.--Section 5312 of title 5, United 
States Code, is amended by striking the following item:
            ``Secretary of Energy.''.
    (d) Deputy Secretary's Compensation.--Section 5313 of title 5, 
United States Code, is amended by striking the following item:
            ``Deputy Secretary of Energy.''.
    (e) Under Secretary's Compensation.--Section 5314 of title 5, 
United States Code, is amended by striking the following item:
            ``Under Secretary, Department of Energy.''.
    (f) Miscellaneous Officers' Compensation.--Section 5315 of title 5, 
United States Code, is amended--
            (1) by striking the following items:
            ``Assistant Secretaries of Energy (8).
            ``General Counsel of the Department of Energy.
            ``Administrator, Economic Regulatory Administration, 
        Department of Energy.
            ``Administrator, Energy Information Administration, 
        Department of Energy.
            ``Inspector General, Department of Energy.
            ``Director, Office of Energy Research, Department of 
        Energy.''; and
            (2) by striking the following item:
            ``Chief Financial Officer, Department of Energy.''.
    (g) Inspector General Act of 1978.--The Inspector General Act of 
1978 (5 U.S.C. App.) is amended--
            (1) in section 9(a)(1), by striking subparagraph (E);
            (2) in section 11(1), by striking ``Energy,''; and
            (3) in section 11(2), by striking ``Energy,'';
    (h) Department of Energy Organization Act.--Effective on the 
termination date, the following provisions of the Department of Energy 
Organization Act (42 U.S.C. 7101 et seq.) are repealed:
            (1) Section 4001.
            (2) Chapters 1, 2, and 3.
SEC. 4019. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this chapter 
shall take effect on the date that is 6 months after the date of the 
enactment of this Act.
    (b) Provisions Effective on Date of Enactment.--The following 
provisions of this chapter shall take effect on the date of the 
enactment of this Act:
            (1) Section 4011(b).
            (2) Section 4016(c).
            (3) Section 4017.
                CHAPTER 2--ENERGY LABORATORY FACILITIES

SEC. 4021. ENERGY LABORATORY FACILITIES COMMISSION.

    (a) Establishment.--There is established an independent commission 
to be known as the ``Energy Laboratory Facilities Commission'', for the 
purpose of reducing the number of energy laboratories and programs at 
those
 laboratories, through reconfiguration, privatization, and closure, 
while preserving the traditional role the energy laboratories have 
contributed to the national defense.
    (b) Duties.--The Commission shall carry out the duties specified 
for the Commission in this chapter.
    (c) Appointment.--
            (1) In general.--The Commission shall be composed of 7 
        members appointed by the President, by and with the advice and 
        consent of the Senate. The President shall transmit to the 
        Senate the nominations for appointment to the Commission not 
        later than 3 months after the date of the enactment of this 
        Act.
            (2) Consultation.--In selecting individuals for nominations 
        for appointments to the Commission, the President should 
        consult with--
                    (A) the Speaker of the House of Representatives 
                concerning the appointment of 2 members; and
                    (B) the majority leader of the Senate concerning 
                the appointment of 2 members.
            (3) Chairperson.--At the time the President nominates 
        individuals for appointment to the Commission, the President 
        shall designate one such individual who shall serve as 
        Chairperson of the Commission.
    (d) Terms.--The term of each member of the Commission shall expire 
on the termination of the Commission under subsection (l).
    (e) Meetings.--Each meeting of the Commission, other than meetings 
in which classified information is to be discussed, shall be open to 
the public.
    (f) Vacancies.--A vacancy in the Commission shall be filled in the 
same manner as the original appointment.
    (g) Pay and Travel Expenses.--
            (1) Basic pay.--
                    (A) Pay of members.--Each member, other than the 
                Chairperson, shall be paid at a rate equal to the daily 
                equivalent of the minimum annual rate of basic pay 
                payable for level IV of the Executive Schedule under 
                section 5315 of title 5, United States Code, for each 
                day (including travel time) during which the member is 
                engaged in the actual performance of duties vested in 
                the Commission.
                    (B) Pay of chairperson.--The Chairperson shall be 
                paid for each day referred to in subparagraph (A) at a 
                rate equal to the daily equivalent of the minimum 
                annual rate of basic pay payable for level III of the 
                Executive Schedule under section 5314 of title 5, 
                United States Code.
            (2) Travel expenses.--Members shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
    (h) Director.--
            (1) In general.--The Commission shall, without regard to 
        section 5311(b) of title 5, United States Code, appoint a 
        Director who--
                    (A) has not served as a civilian employee of the 
                Department of Energy during the 2-year period preceding 
                the date of such appointment;
                    (B) has not been an employee of an energy 
                laboratory during the 5-year period preceding the date 
                of such appointment; and
                    (C) has not been an employee of a contractor 
                operating an energy laboratory during the 5-year period 
                preceding the date of such appointment.
            (2) Pay.--The Director shall be paid at the rate of basic 
        pay payable for level IV of the Executive Schedule under 
        section 5315 of title 5, United States Code.
    (i) Staff.--
            (1) Appointment by director.--Subject to paragraphs (2) and 
        (3), the Director, with the approval of the Commission, may 
        appoint and fix the pay of additional personnel.
            (2) Applicability of certain civil service laws.--The 
        Director may make such appointments without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service, and any personnel so 
        appointed may be paid without regard to the provisions of 
        chapter 51 and subchapter III of chapter 53 of that title 
        relating to classification and General Schedule pay rates, 
        except that an individual so appointed may not receive pay in 
        excess of the annual rate of basic pay payable for level IV of 
        the Executive Schedule under section 5315 of title 5, United 
        States Code.
            (3) Limitations.--Not more than one-third of the personnel 
        employed by or detailed to the Commission shall be individuals 
        employed by the Department of Energy on the day before the date 
        of the enactment of this Act. No employee of an energy 
        laboratory, or of a contractor who operates an energy 
        laboratory, may be detailed to the Commission.
            (4) Support from other agencies.--Upon request of the 
        Director, the head of a Federal agency may detail any of the 
        personnel of that agency to the Commission to assist the 
        Commission in carrying out its duties under this chapter.
            (5) Support from comptroller general.--The Comptroller 
        General of the United States shall provide assistance, 
        including the detailing of employees, to the Commission in 
        accordance with an agreement entered into with the Commission.
    (j) Other Authority.--
            (1) Temporary and intermittent services.--The Commission 
        may procure by contract, to the extent funds are available, the 
        temporary or intermittent services of experts or consultants 
        pursuant to section 3109 of title 5, United States Code.
            (2) Authority to lease space and acquire certain 
        property.--The Commission may lease space and acquire personal 
        property to the extent funds are available. To the extent 
        practicable, the Commission shall use suitable real property 
        available under the most recent inventory of real property 
        assets published by the Resolution Trust Corporation under 
        section 21A(b)(11)(F) of the Federal Home Loan Bank Act (12 
        U.S.C. 1441a(b)(12)(F)).
    (k) Funding.--There are authorized to be appropriated to the 
Commission such funds as are necessary to carry out its duties under 
this chapter. Such funds shall remain available until expended.
    (l) Termination.--The Commission shall terminate not later than 30 
days after the date on which it transmits its final recommendations 
under section 4022(f)(4).

SEC. 4022. PROCEDURE FOR MAKING RECOMMENDATIONS FOR LABORATORY 
              FACILITIES.

    (a) Selection Criteria.--In making recommendations for the 
reconfiguration, privatization, and closure of energy laboratories and 
termination of programs at such laboratories under this section, the 
Secretary or the Administrator, as appropriate, and the Commission 
shall--
            (1) give strong consideration to the closure or 
        reconfiguration of energy laboratories;
            (2) eliminate duplication of effort by energy laboratories 
        and reduce overhead costs as a proportion of program benefits 
        distributed through an energy laboratory;
            (3) seek to achieve cost savings for the overall budget for 
        such laboratories;
            (4) define appropriate missions for each energy laboratory, 
        and ensure that the activities of each
         such laboratory are focused on its mission or missions;
            (5) consider the program costs and program distributions on 
        a State and county basis, including real and personal property 
        costs associated with each energy laboratory considered;
            (6) consider the number of participants in programs 
        conducted through an energy laboratory and staff resources 
        involved;
            (7) estimate the cost savings and increases that would 
        accrue through the reconfiguration of energy laboratories;
            (8) consider the potential of each energy laboratory to 
        generate revenues or to offset costs;
            (9) consider the transfer of energy laboratories to other 
        Federal agencies;
            (10) consider the privatization of the energy laboratories 
        as an alternative to closure or reconfiguration; and
            (11) be subject to the requirements of section 4061 of this 
        subtitle.
    (b) Recommendations.--
            (1) Publication and transmittal.--Not later than 3 months 
        after the date of the enactment of this Act, the Secretary or 
        the Administrator, as appropriate, shall publish in the Federal 
        Register and transmit to the congressional energy committees 
        and to the Commission a list of the energy laboratories that 
        the Secretary or the Administrator, as appropriate, recommends 
        for reconfiguration, privatization, and closure.
            (2) Summary of selection process.--The Secretary or the 
        Administrator, as appropriate, shall include, with the list of 
        recommendations published and transmitted pursuant to paragraph 
        (1), a summary of the selection process that resulted in the 
        recommendation for each energy laboratory, including a 
        justification for each recommendation.
    (c) Equal Consideration of Laboratories.--In considering energy 
laboratories for reconfiguration, privatization, and closure, the 
Secretary or the Administrator, as appropriate, shall consider all such 
laboratories equally without regard to whether a laboratory has been 
previously considered or proposed for reconfiguration, privatization, 
or closure by the Secretary of Energy.
    (d) Availability of Information.--The Secretary or the 
Administrator, as appropriate, shall make available to the Commission 
and the Comptroller General of the United States all information used 
by the Secretary or the Administrator, as appropriate, in making 
recommendations under this section.
    (e) Independent Audit.--(1) Within 30 days after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget shall issue a request for proposals for the performance of an 
audit under paragraph (3).
    (2) Within 60 days after the date of the enactment of this Act, 
proposals shall be due in response to the request under paragraph (1).
    (3) Within 90 days after the date of the enactment of this Act, the 
Director of the Office of Management and budget shall enter into a 
contract with an independent financial consulting firm for an audit of 
the energy laboratories and their programs, facilities, and assets. 
Such audit shall assess the commercial potential of the energy labs and 
their programs and make recommendations on how the Government could 
best realize such potential. The audit shall be completed and 
transmitted to the Commission, the Secretary or the Administrator, as 
appropriate,, and the congressional energy committees within 6 months 
after the contract is entered into under this subsection.
    (f) Review and Recommendations by the Commission.--
            (1) Public hearings.--After receiving the recommendations 
        from the Secretary or the Administrator, as appropriate, 
        pursuant to subsection (b), the Commission shall provide an 
        opportunity for public comment on the recommendations for a 30-
        day period.
            (2) Initial report.--Not later than 1 year after the date 
        of the enactment of this Act, the Commission shall publish in 
        the Federal Register an initial report containing the 
        Commission's findings and conclusions based on a review and 
        analysis of the recommendations made by the Secretary or the 
        Administrator, as appropriate, and the audit conducted pursuant 
        to subsection (e), together with the Commission's 
        recommendations for reconfiguration, privatization, and closure 
        of energy laboratories. In conducting such review and analysis, 
        the Commission shall consider all energy laboratories.
            (3) Deviation from recommendations.--In making its 
        recommendations, the Commission may make changes in any of the 
        recommendations made by the Secretary or the Administrator, as 
        appropriate, if the Commission determines that the Secretary or 
        the Administrator, as appropriate, deviated substantially from 
        the criteria described in subsection (a) in making 
        recommendations. The Commission shall explain and justify in 
        the report any recommendation made by the Commission that is 
        different from the recommendations made by the Secretary or the 
        Administrator, as appropriate.
            (4) Final report.--After providing a 30-day period for 
        public comment following publication of the initial report 
        under paragraph (2), and after full consideration of such 
        public comments, the Commission shall, within 15 months after 
        the date of the enactment of this Act, transmit to the 
        Secretary or the Administrator, as appropriate, and the 
        congressional energy committees a final report containing the 
        recommendations of the Commission.
            (5) Provision of certain information.--After transmitting 
        the final report under paragraph (4), the Commission shall 
        promptly provide, upon request, to any Member of Congress 
        information used by the Commission in making its 
        recommendations.
    (g) Assistance From Comptroller General.--The Comptroller General 
of the United States shall--
            (1) assist the Commission, to the extent requested, in the 
        Commission's review and analysis of the recommendations made by 
        the Secretary or the Administrator, as appropriate, pursuant to 
        subsection (b); and
            (2) not later than 6 months after the date of the enactment 
        of this Act, transmit to the congressional energy committees 
        and to the Commission a report containing a detailed analysis 
        of the recommendations of the Secretary or the Administrator, 
        as appropriate, and the selection process.

SEC. 4023. RECONFIGURATION, PRIVATIZATION, AND CLOSURE OF ENERGY 
              LABORATORIES.

    (a) In General.--Subject to subsection (b), the Secretary or the 
Administrator, as appropriate, shall--
            (1) reconfigure, within 1 year after the date of the 
        transmittal of the final report under section 4022(f)(4), all 
        energy laboratories recommended for reconfiguration by the 
        Commission in such report;
            (2) provide for and complete the privatization, within 18 
        months after the date of the transmittal of the final report 
        under section 4022(f)(4), of all energy laboratories 
        recommended for privatization by the Commission in such report; 
        and
            (3) except as necessary to achieve the privatization of an 
        energy laboratory under paragraph (2), close, within 1 year 
        after the date of the transmittal of the final report under 
        section 4022(f)(4), all energy laboratories recommended for 
        closure by the Commission in such report.
    (b) Congressional Disapproval.--
            (1) In general.--The Secretary or the Administrator, as 
        appropriate, may not carry out any reconfiguration, 
        privatization, or closure of an energy laboratory recommended 
        by the Commission in the report transmitted pursuant to section 
        4022(f)(4) if a joint resolution is enacted, in accordance with 
        the provisions of section 4027, disapproving the 
        recommendations of the Commission before the earlier of--
                    (A) the end of the 45-day period beginning on the 
                date on which the Commission transmits the report; or
                    (B) the adjournment of Congress sine die for the 
                session during which the report is transmitted.
            (2) For purposes of paragraph (1) of this subsection and 
        subsections (a) and (c) of section 4027, the days on which 
        either House of Congress is not in session because of an 
        adjournment of more than three days to a day certain shall be 
        excluded in the computation of a period.
SEC. 4024. IMPLEMENTATION OF RECONFIGURATION, PRIVATIZATION, AND 
              CLOSURE ACTIONS.

    (a) Implementation.--In reconfiguring, priva- tizing, or closing an 
energy laboratory under this chapter, the Secretary or the 
Administrator, as appropriate, shall--
            (1) take such actions as may be necessary to reconfigure, 
        privatize, or close the energy laboratory;
            (2) take such steps as may be necessary to ensure the safe 
        keeping of all records stored at the energy laboratory; and
            (3) reimburse other Federal agencies for actions performed 
        at the request of the Secretary or the Administrator, as 
        appropriate, with respect to any such reconfiguration, 
        privatization, or closure, and may use for such purpose funds 
        in the Account or funds appropriated to the Department of 
        Energy and available for such purpose.
    (b) Management and Disposal of Property.--
            (1) In general.--The Administrator of General Services 
        shall delegate to the Secretary or the Administrator, as 
        appropriate, with respect to excess and surplus real property 
        and facilities located at an energy laboratory reconfigured, 
        privatized, or closed under this chapter--
                    (A) the authority of the Secretary or the 
                Administrator, as appropriate, to utilize excess 
                property under section 202 of the Federal Property and 
                Administrative Services Act of 1949 (40 U.S.C. 483);
                    (B) the authority of the Secretary or the 
                Administrator, as appropriate, to dispose of surplus 
                property under section 203 of that Act (40 U.S.C. 484);
                    (C) the authority of the Secretary or the 
                Administrator, as appropriate, to grant approvals and 
                make determinations under section 13(g) of the Surplus 
                Property Act of 1944 (50 U.S.C. App. 1622(g)); and
                    (D) the authority of the Secretary or the 
                Administrator, as appropriate, to determine the 
                availability of excess or surplus real property for 
                wildlife conservation purposes in accordance with the 
                Act of May 19, 1948 (16 U.S.C. 667b).
            (2) Exercise of authority.--
                    (A) In general.--Subject to subparagraph (C), the 
                Secretary or the Administrator, as appropriate, shall 
                exercise the authority delegated to the Secretary or 
                the Administrator, as appropriate, pursuant to 
                paragraph (1) in accordance with--
                            (i) all regulations in effect on the date 
                        of the enactment of this Act governing the 
                        utilization of excess property and the disposal 
                        of surplus property under the Federal Property 
                        and Administrative Services Act of 1949; and
                            (ii) all regulations in effect on the date 
                        of the enactment of this Act governing the 
                        conveyance and disposal of property under 
                        section 13(g) of the Surplus Property Act of 
                        1944 (50 U.S.C. App. 1622(g)).
                    (B) Regulations.--The Secretary or the 
                Administrator, as appropriate, after consulting with 
                the Administrator of General Services, may issue 
                regulations that are necessary to carry out the 
                delegation of authority required by paragraph (1).
                    (C) Limitation.--The authority required to be 
                delegated by paragraph (1) to the Secretary or the 
                Administrator, as appropriate, by the Administrator of 
                General Services shall not include the authority to 
                prescribe general policies and methods for utilizing 
                excess property and disposing of surplus property.
    (c) Waiver.--The Secretary or the Administrator, as appropriate, 
may reconfigure, privatize, or close energy laboratories under this 
chapter without regard to any provision of law restricting the use of 
funds for reconfiguring, privatizing, or closing such energy 
laboratories included in any appropriations or authorization Act.

SEC. 4025. ACCOUNT.

    (a) Establishment.--There is hereby established on the books of the 
Treasury an account to be known as the ``Energy Laboratory Facility 
Closure Account'' which shall be administered by the Secretary or the 
Administrator, as appropriate, as a single account.
    (b) Content of Account.--There shall be deposited into the 
Account--
            (1) funds authorized for and appropriated to the Account;
            (2) any funds that the Secretary or the Administrator, as 
        appropriate, may, subject to approval in an appropriation Act, 
        transfer to the Account from funds appropriated to the 
        Department of Energy for any purpose, except that such funds 
        may be transferred only after the date on which the Secretary 
        or the Administrator, as appropriate, transmits written
         notice of, and justification for, such transfer to the 
congressional energy committees; and
            (3) proceeds received from the transfer or disposal of any 
        property at an office reconfigured, privatized, or closed under 
        this section.
    (c) Use of Funds.--The Secretary or the Administrator, as 
appropriate, may use the funds in the Account only for the purposes 
described in section 4024(a).
    (d) Reports.--
            (1) In general.--Not later than 60 days after the end of 
        each fiscal year in which the Secretary or the Administrator, 
        as appropriate, carries out activities under this chapter, the 
        Secretary or the Administrator, as appropriate, shall transmit 
        a report to the congressional energy committees of the amount 
        and nature of the deposits into, and the expenditures from, the 
        Account during such fiscal year and of the amount and nature of 
        other expenditures made pursuant to section 4024(a) during such 
        fiscal year.
            (2) Unobligated funds.--Unobligated funds shall be held in 
        the Account until transferred by law.

SEC. 4026. REPORTS ON IMPLEMENTATION.

    As part of the budget request for each fiscal year in which the 
Secretary or the Administrator, as appropriate, is authorized to carry 
out activities under this chapter, the Secretary or the Administrator, 
as appropriate, shall transmit to the congressional energy committees--
            (1) a schedule of the reconfiguration, privatization, and 
        closure actions to be carried out under this chapter in the 
        fiscal year for which the request is made and an estimate of 
        the total expenditures required and cost savings to be achieved 
        by each such reconfiguration, privatization, or closure and of 
        the time period in which these savings are to be achieved in 
        each case; and
            (2) a description of the energy laboratories to which 
        functions are to be transferred as a result of such 
        reconfigurations, privatizations, and closures.

SEC. 4027. CONGRESSIONAL CONSIDERATION OF COMMISSION REPORT.

    (a) Terms of the Resolution.--For purposes of section 4023(b), the 
term ``joint resolution'' means only a joint resolution which is 
introduced within the 10-day period beginning on the date on which the 
Commission transmits the report to the Congress under section 
4022(f)(4), and--
            (1) which does not have a preamble;
            (2) the matter after the resolving clause of which is as 
        follows: ``That Congress disapproves the recommendations of the 
        Energy Laboratory Facilities Commission as submitted on 
        ______'', the blank space being filled in with the appropriate 
        date; and
            (3) the title of which is as follows: ``Joint resolution 
        disapproving the recommendations of the Energy Laboratory 
        Facilities Commission.''.
    (b) Referral.--A resolution described in subsection (a) that is 
introduced in the House of Representatives shall be referred to the 
Committee on National Security and the Committee on Science of the 
House of Representatives. A resolution described in subsection (a) 
introduced in the Senate shall be referred to the Committee on Armed 
Services and the Committee on Energy and Natural Resources of the 
Senate.
    (c) Discharge.--If the committee to which a resolution described in 
subsection (a) is referred has not reported such resolution (or an 
identical resolution) by the end of the 20-day period beginning on the 
date on which the Commission transmits the report to the Congress under 
section 4022(f)(4), such committee shall be, at the end of such period, 
discharged from further consideration of such resolution, and such 
resolution shall be placed on the appropriate calendar of the House 
involved.
    (d) Consideration.--
            (1) In general.--On or after the third day after the date 
        on which the committee to which such a resolution is referred 
        has reported, or has been discharged (under subsection (c)) 
        from further consideration of, such a resolution, it is in 
        order (even though a previous motion to the same effect has 
        been disagreed to) for any Member of the respective House to 
        move to proceed to the consideration of the resolution (but 
        only on the day after the calendar day on which such Member 
        announces to the House concerned the Member's intention to do 
        so). All points of order against the resolution (and against 
        consideration of the resolution) are waived. The motion is 
        highly privileged in the House of Representatives and is 
        privileged in the Senate and is not debatable. The motion is 
        not subject to amendment, or to a motion to postpone, or to a 
        motion to proceed to the consideration of other business. A 
        motion to reconsider the vote by which the motion is agreed to 
        or disagreed to shall not be in order. If a motion to proceed 
        to the consideration of the resolution is agreed to, the 
        respective House shall immediately proceed to consideration of 
        the joint resolution without intervening motion, order, or 
        other business, and the resolution shall remain the unfinished 
        business of the respective House until disposed of.
            (2) Debate.--Debate on the resolution, and on all debatable 
        motions and appeals in connection therewith, shall be limited 
        to not more than 2 hours, which shall be divided equally 
        between those favoring and those opposing the resolution. An 
        amendment to the resolution is not in order. A motion further 
        to limit debate is in order and not debatable. A motion to 
        postpone, or a motion to proceed to the consideration of other 
        business, or a motion to recommit the resolution is not in 
        order. A motion to reconsider the vote by which the resolution 
        is agreed to or disagreed to is not in order.
            (3) Quorum call.--Immediately following the conclusion of 
        the debate on a resolution described in subsection (a) and a 
        single quorum call at the conclusion of the debate if requested 
        in accordance with the rules of the appropriate House, the vote 
        on final passage of the resolution shall occur.
            (4) Appeals from decision of chair.--Appeals from the 
        decisions of the Chair relating to the application of the rules 
        of the Senate or the House of Representatives, as the case may 
        be, to the procedure relating to a resolution described in 
        subsection (a) shall be decided without debate.
    (e) Consideration by Other House.--
            (1) In general.--If, before the passage by one House of a 
        resolution of that House described in subsection (a), that 
        House receives from the other House a resolution described in 
        subsection (a), then the following procedures shall apply:
                    (A) The resolution of the other House shall not be 
                referred to a committee and may not be considered in 
                the House receiving it except in the case of final 
                passage as provided in subparagraph (B)(ii).
                    (B) With respect to a resolution described in 
                paragraph (1) of the House receiving the resolution--
                            (i) the procedure in that House shall be 
                        the same as if no resolution had been received 
                        from the other House; but
                            (ii) the vote on final passage shall be on 
                        the resolution of the other House.
            (2) Consideration after disposition by other house.--Upon 
        disposition of the resolution received from the other House, it 
        shall no longer be in order to consider the resolution that 
        originated in the receiving House.
    (f) Rules of the Senate and House.--This section is enacted by 
Congress--
            (1) as an exercise of the rulemaking power of the Senate 
        and House of Representatives, respectively, and as such it is 
        deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of a resolution described in subsection 
        (a), and it supersedes other rules only to the extent that it 
        is inconsistent with such rules; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner, and 
        to the same extent as in the case of any other rule of that 
        House.

SEC. 4028. DEFINITIONS.

    For purposes of this chapter:
            (1) The term ``Account'' means the Energy Laboratory 
        Facility Closure Account established in section 4025(a).
            (2) The term ``Administrator'' has the meaning given such 
        term in section 4089(1) of this subtitle.
            (3) The term ``Commission'' means the Energy Laboratory 
        Facilities Commission.
            (4) The term ``congressional energy committees'' means the 
        Committee on Armed Services of the Senate, the Committee on 
        National Security of the House of Representatives, the 
        Committee on Science of the House of Representatives, and the 
        Committee on Energy and Natural Resources of the Senate.
            (5) The term ``energy laboratory'' means the Lawrence 
        Livermore National Laboratory, the Los Alamos National 
        Laboratory, the Sandia National Laboratories, the Argonne 
        National Laboratory, the Brookhaven National Laboratory, the 
        Idaho National Engineering Laboratory, the Lawrence Berkeley 
        Laboratory, the Oak Ridge National Laboratory, the Pacific 
        Northwest Laboratory, the National Renewable Energy Laboratory, 
        the Ames Laboratory, the Bates Linear Accelerator Laboratory, 
        the Bettis Atomic Power Laboratory, the Continuous Electron 
        Beam Accelerator Facility, the Energy Technology Engineering 
        Center, the Environmental Measurements Laboratory, the Fermi 
        National Accelerator Laboratory, the Inhalation Toxicology 
        Research Institute, the Knolls Atomic Power Laboratory, the 
        Laboratory of Radiobiology and Environmental Health, the 
        Morgantown Energy Technology Center, the National Renewable 
        Energy Laboratory, the New Brunswick Laboratory, the Oak Ridge 
        Institute for Science and Education, the Pittsburgh Energy 
        Technology Center, the Princeton Plasma Physics Laboratory, the 
        Savannah River Ecology Laboratory, the Savannah River 
        Technology Center, the Specific Manufacturing Capability 
        Facility, or the Stanford Linear Accelerator Facility.
            (6) The term ``the Secretary or the Administrator, as 
        appropriate'' means the Secretary of Energy, or, after the 
        effective date stated in section 4019(a), the Administrator.
   CHAPTER 3--PRIVATIZATION OF FEDERAL POWER MARKETING ADMINISTRTIONS
SEC. 4031. SHORT TITLE.

    This chapter may be cited as the ``Federal Power Asset 
Privatization Act of 1995''.

SEC. 4032. FINDINGS.

    The Congress finds that:
            (1) the Federal Power Marketing Administrations, over the 
        years, have served to help bring electricity to many areas in 
        the Nation;
            (2) they have done so with the investment of the American 
        taxpayer;
            (3) the necessity of federally owned power generation and 
        transmission facilities has passed and halting this practice is 
        in the best national interest of the United States;
            (4) in fairness to the longtime consumers of Federal Power 
        Marketing Administrations, any process of sale should be open 
        to them;
            (5) the taxpayers, through investing in the construction 
        and operation, have established equity in the facilities; and
            (6) this equity entitles the American taxpayer to expect 
        the highest possible return in the sale process.

SEC. 4033. SALE OF ASSETS.

    (a) Sale of Assets.--The Secretary is authorized and directed to 
take such steps as necessary to sell all electric power generation 
facilities and transmission facilities, that are currently owned and 
operated by Federal departments and agencies under the supervision of, 
or coordination with, the Federal Power Marketing Administrations. No 
foreign person or corporation may purchase any such facilities; such 
facilities may be sold only to a United States citizen or to a 
corporation or partnership organized under the laws of a State. After 
such sales are completed the Secretary shall terminate the operations 
of the Federal Power Marketing Administrations. The heads of other 
affected Federal departments and agencies shall assist the Secretary of 
Energy in implementing the sales authorized by this section.
    (b) Price; Structure of Sale.--
            (1) Price.--The Secretary shall obtain the highest possible 
        price for such facilities. In determining the highest possible 
        price, the value of future tax revenues shall be included.
            (2) Retention of financial advisor.--In order to conduct 
        the sales authorized by this section in such manner as will 
        produce the highest possible price for the facilities to be 
        sold consistent with this chapter, within 30 days of enactment 
        of this section, the Secretary shall, through a competitive 
        bidding process, retain an experienced private sector firm to 
        serve as financial advisor to the Secretary with respect to 
        such sales.
            (3) Financial advisor's report.--Within 90 days of being 
        retained by the Secretary, the financial advisor shall provide 
        to the Secretary a report containing--
                    (A) a description of those assets described in 
                subsection (a) which, in the opinion of the financial 
                advisor, can be successfully transferred to private 
                sector ownership or operation;
                    (B) the value of each such asset, calculated on the 
                basis of the valuation method or methods which the 
                financial advisor deems most appropriate to a 
                particular asset;
                    (C) the appropriate alternative transactional 
                methods for transferring each such asset to private 
                sector ownership or operation;
                    (D) the amount of proceeds which the financial 
                advisor estimates would be paid to the United States 
                Government as a result of such transaction, including 
                the present value of future revenue from taxes and any 
                other future payments to be made to the United States 
                Government; and
                    (E) an estimate of the average market rate for 
                wholesale electric power sales within each region 
                served by a Federal Power Marketing Administration.
    (c) Time of Sale.--Sales of facilities under this section shall be 
conducted in accordance with the time of sale schedule set forth in 
section 4034. At least one year before the date of any sale specified 
in such schedule, the Secretary, in consultation with the Secretary of 
the Army and the Secretary of the Interior, and based on the 
recommendations of the financial advisor, shall select the facilities 
or groups of facilities to be sold and establish the terms and 
conditions of the sale.
    (d) Former Employees of PMAS.--It is the sense of the Congress that 
the purchaser of any such facilities should offer to employ, where 
possible, former employees of the Federal Power Marketing 
Administrations in connection with the operation of the facilities 
following their purchase.
    (e) Proceeds.--The Secretary of Energy shall deposit sale proceeds 
in the Treasury of the United States to the credit of miscellaneous 
receipts.
    (f) Preparation.--The Secretary of Energy is authorized to use 
funds appropriated to the Department of Energy for the Federal Power 
Marketing Administrations and funds otherwise appropriated to other 
Federal agencies for power generation and related activities in order 
to prepare these assets for sale and conveyance. Such preparation shall 
provide sufficient title to ensure the beneficial use, enjoyment, and 
occupancy to the purchasers of the assets to be sold and shall include 
identification of all associated laws and regulations to be amended for 
the purpose of these sales. The Secretary of Energy shall undertake a 
study of the effect of sales of facilities under this chapter on 
existing contracts for the sale of electric power generated at such 
facilities.
    (g) Reporting of Sales.--Not later than one year after the sale of 
the assets of each Federal Power Marketing Administration in accordance 
with this chapter, the Secretary of Energy shall--
            (1) complete the business of, and close out, such 
        administration; and
            (2) prepare and submit to Congress a report documenting the 
        sales.
    (h) Treatment of Sales for Purposes of Certain Laws.--The sales of 
assets under this chapter shall not be considered a disposal of Federal 
surplus property under the following provisions of law:
            (1) Section 203 of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 484).
            (2) Section 13 of the Surplus Property Act of 1944 (50 
        U.S.C. App. 1622).

SEC. 4034. TIME OF SALES.

    (a) Schedule.--During the next 5 years, the Secretary of Energy 
shall complete the sale of the electric
 power generation and transmission assets referred to in 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 
------------------------------------------------------------------------

    (b) Unexpended Balances.--Following the sale of the assets of each 
of the Federal Power Marketing Administrations and their associated 
power generation facilities, the Secretary of Energy shall return the 
unexpended balances of funds appropriated for that administration to 
the Treasury of the United States.

SEC. 4035. RATE STABILIZATION FOR AFFECTED CONSUMERS.

    So that the affected consumers of each Federal Power Marketing 
Administration are not impacted by severe rate increases, each 
purchaser of electric power generation facilities providing electric 
power to customers within any region shall be required, as part of the 
agreement to purchase such facilities, to insure that the price at 
which electric power is sold to such consumers does not increase above 
the baseline price at a rate greater than 10 percent annually. For 
purposes of this section, the term ``baseline price'' means the price 
for the sale of electric power to a consumer that is in effect on the 
date of the sale of the facility. The preceding sentence shall cease to 
apply when the price at which electric power is sold to a consumer is 
at least equal to the average market rate for wholesale electric power 
sales within the region concerned, as determined by the Financial 
Advisor.

SEC. 4036. LICENSING OF PROJECTS TO PRESERVE CURRENT OPERATING 
              CONDITIONS.

    (a) Original License.--Simultaneously with the sale of 
hydroelectric generation facility under this chapter, the Federal 
Energy Regulatory Commission shall issue an original license under part 
1 of the Federal Power Act (16 U.S.C. 791a-823b) to the purchaser for 
the construction, operation, and maintenance of such facility. Such 
license shall expire on the date 10 years after the date of the sale 
facility and shall contain standard terms and conditions for 
hydroelectric power licenses issued under part 1 of such Act for 
facilities installed at Federal water projects, together with such 
additional terms and conditions as the Commission deems necessary, in 
consultation with the department or agency which operates such water 
project, to further the project purposes and insure that the project 
will continue operations in the same manner and subject to the same 
procedures, contracts, and other requirements as were applicable prior 
to the sale. The Commission shall publish such license terms and 
conditions for each facility to be sold under this chapter as promptly 
as practicable after the date of the enactment of this Act but not 
later than one year prior to the date established for the sale of the 
facility.
    (b) License Required.--Notwithstanding any other provision of law, 
the Federal Energy Regulatory Commission shall have jursidiction under 
part 1 of the Federal Power Act over any hydroelectric generation 
facility sold under this chapter.

SEC. 4037. ENABLING FEDERAL STUDIES.

    Section 505 of the Energy and Water Development Appropriations Act 
of 1993 (Public Law 102-377) is hereby repealed.

SEC. 4038. DEFINITIONS.

    For purposes of this chapter:
            (1) The term ``power generation facility'' means a facility 
        used for the generation of electric energy. If any portion of a 
        structure or other facility is used for flood control, water 
        supply, or other purposes in addition to the generation of 
        electric energy, such term refers only to that portion of the 
        structure or facility used exclusively for the generation of 
        electric energy, including turbines, generators, controls, 
        substations, and primary lines used for transmitting electric 
        energy therefrom to the point of juncture with the 
        interconnected primary transmission system. Such term shall not 
        include any portion of a facility used for navigation, flood 
        control, irrigation, water supply, or recreation.
            (2) The term ``Secretary'' means the Secretary of Energy or 
        any successor agency. If any such agency terminates prior to 
        the complete execution of all duties vested in the Secretary of 
        Energy under this chapter, such duties shall be vested in the 
        Secretary of the Interior.

              CHAPTER 4--TRANSFER AND DISPOSAL OF RESERVES
SEC. 4041. STRATEGIC PETROLEUM RESERVE.

    (a) Transfer of Functions.--There are hereby transferred to the 
Secretary of the Interior all functions performed by the Department of 
Energy with respect to the Strategic Petroleum Reserve on the day 
before the effective date of this section.
    (b) Disposal of Certain Reserves.--The Secretary of the Interior 
shall dispose of the reserves held at Weeks Island, Louisiana, in a 
manner that provides for minimal disruption of petroleum markets.
    (c) Advisory Board.--(1) The Secretary of the Interior shall 
appoint an advisory board, consisting of 3 individuals with experience 
in oil markets and production and international relations, which 
shall--
            (A) monitor the disposal of reserves under subsection (b) 
        and its effects on petroleum markets; and
            (B) within 60 days after the completion of such disposal, 
        submit to the Congress a report containing recommendations as 
        described in paragraph (2).
    (2) The advisory board shall make recommendations on whether the 
United States should maintain or dispose of the Strategic Petroleum 
Reserve, based on information obtained pursuant to paragraph (1)(A) and 
any other relevant information the advisory board obtains. If the 
advisory board recommends maintaining the Strategic Petroleum Reserve, 
it shall include recommendations for administering the Reserve, and if 
it recommends disposing of the Reserve, it shall include 
recommendations for procedures for carrying out such disposal.
    (3) Notwithstanding section 14 of the Federal Advisory Committee 
Act, the advisory board established under this subsection shall 
terminate within 30 days after it submits a report under paragraph 
(1)(B).
    (d) Effective Date.--This section shall take effect on the 
effective date stated in section 4019(a).
SEC. 4042. TRANSFER OF NAVAL PETROLEUM RESERVES TO DEPARTMENT OF THE 
              INTERIOR WITH INSTRUCTIONS TO SELL THE RESERVES.

    (a) Transfer of Jurisdiction.--The Secretary of Energy shall 
transfer the naval petroleum reserves (as defined in section 7420(2) of 
title 10, United States Code) from the jurisdiction and control of the 
Department of Energy to the jurisdiction and control of the Department 
of the Interior. The transfer required by this subsection shall be made 
without compensation or reimbursement.
    (b) Time for Transfer.--The transfer required by subsection (a) 
shall be made as soon as possible after the date of the enactment of 
this Act, but in no case later than one year after that date.
    (c) Sale of Reserves Required.--Chapter 641 of title 10, United 
States Code, is amended by inserting after section 7421 the following 
new section:
``Sec. 7421a. Sale of naval petroleum reserves
    ``(a) Sale Required.--Notwithstanding any other provision of this 
chapter, the Secretary of the Interior shall sell all right, title, and 
interest of the United States in and to the naval petroleum reserves 
beginning on the date of the enactment of this section.
    ``(b) Time for Sales.--The Secretary shall complete the sale of the 
naval petroleum reserves not later than one year after the date of the 
enactment of this section unless, as a result of the conditions 
specified in subsection (c), the Secretary determines a longer sale 
period is necessary. The Secretary shall notify Congress of any 
extension of the sale period.
    ``(c) Conditions on Sale.--Sales of the naval petroleum reserves 
under subsection (a) may not be for less than fair market value, as 
determined by the Secretary on the basis of appraisals performed by 
recognized experts in the field. The Secretary shall conduct sales 
using competitive procedures. The Secretary may establish such bidding 
terms and conditions as the Secretary considers to be necessary and 
appropriate, including the establishment of sale units and minimum 
bids. The Secretary shall structure sale units and times so as to 
prevent disruption of world petroleum markets.
    ``(d) Effect on Existing Contracts and Leases.--Sales of the naval 
petroleum reserves under subsection (a) shall be subject to leases of 
any part of the naval petroleum reserves, permits, licenses, easements, 
grazing and agricultural leases, rights-of-way, and similar contracts 
pertaining to use of the surface area of the naval petroleum reserves 
and in effect on the date of the enactment of this section. Such sales 
shall also be subject to contracts, in effect on the date of the 
enactment of this section, to sell the petroleum produced from any part 
of the naval petroleum reserves.
    ``(e) Purchaser To Be Held Harmless.--A purchaser of any right, 
title, or interest of the United States in the naval petroleum reserves 
shall be held harmless for any claim of liability arising exclusively 
from or during the ownership of the interest by the United States. Such 
a claim of liability may be asserted against the United States only to 
the extent and in the manner provided by law.
    ``(f) Requirements Regarding Consultation and Approval.--The 
congressional consultation and Presidential approval requirements of 
section 7431(a) of this title regarding each individual sale of a 
portion of the naval petroleum reserves shall not apply to sales under 
this section.''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
7421 the following new item:

``7421a. Sale of naval petroleum reserves.''.
    (e) Conforming Amendments to Title 10, United States Code.--Chapter 
641 of title 10, United States Code, is amended--
            (1) in section 7420(4), by striking ``Secretary of Energy'' 
        and inserting ``Secretary of the Interior'';
            (2) in section 7427, by striking ``of the Interior'';
            (3) in section 7430(d), by striking ``, in consultation 
        with the Secretary of the Interior,''; and
            (4) in section 7430(j), by striking ``he, or the Secretary 
        of the Interior where the authority extends to him,''.
   CHAPTER 5--NATIONAL SECURITY AND ENVIRONMENTAL MANAGEMENT PROGRAMS

SEC. 4051. DEFINITIONS.

    In this chapter:
            (1) The term ``defense nuclear programs matters'' means 
        matters related to the military use of nuclear energy and 
        nuclear weapons, including all such matters that were under the 
        jurisdiction of the following entities on the day before the 
        date of the enactment of this subtitle:
                    (A) The Department of Energy.
                    (B) The Defense Nuclear Agency of the Department of 
                Defense.
                    (C) The Defense Nuclear Facilities Safety Board.
            (2) The term ``Under Secretary'' means the Under Secretary 
        of Defense for Defense Nuclear Programs.
            (3) The term ``Agency'' means the Defense Nuclear Programs 
        Agency.

SEC. 4052. ESTABLISHMENT AND ORGANIZATION OF DEFENSE NUCLEAR PROGRAMS 
              AGENCY.

    (a) Establishment of Defense Nuclear Programs Agency.--There is 
established an agency in the Department of Defense to be known as the 
Defense Nuclear Programs Agency.
    (b) Under Secretary.--The Agency shall be headed by an Under 
Secretary for Defense Nuclear Programs, who shall serve as the 
principal adviser to the Secretary of Defense on defense nuclear 
programs matters. In carrying out his duties under this chapter, the 
Under Secretary for Defense Nuclear Programs shall, subject to the 
authority, direction, and control of of the Secretary of Defense, have 
primary responsibility within the Government for defense nuclear 
programs matters. The Under Secretary shall be appointed by the 
President, by and with the advice and consent of the Senate. A 
commissioned officer of the Armed Forces serving on active duty may not 
be appointed Under Secretary. The Under Secretary shall be compensated 
at the rate provided for level II of the Executive Schedule under 
section 5313 of title 5, United States Code.
    (c) Deputy Under Secretary.--A Deputy Under Secretary for Defense 
Nuclear Programs shall be appointed by the President, by and with the 
advice and consent of the Senate. The Deputy Under Secretary shall 
perform such duties and exercise such powers as the Under Secretary for 
Defense Nuclear Programs may prescribe. The Deputy Under Secretary 
shall act for, and exercise the powers of, the Under Secretary during 
the Under Secretary's absence or disability or during a vacancy in such 
office. A commissioned officer of the Armed Forces serving on active 
duty may not be appointed Deputy Under Secretary. The Deputy Under 
Secretary shall be compensated at the rate provided for level III of 
the Executive Schedule under section 5314 of title 5, United States 
Code.
    (d) Assistant Secretaries.--(1) Four Assistant Secretaries of the 
Agency shall be appointed by the President, by and with the advice and 
consent of the Senate. They shall perform such duties and exercise such 
powers as the Under Secretary may prescribe.
    (2) One of the Assistant Secretaries shall have as his principal 
duty the overall supervision of environmental restoration of defense 
nuclear weapons facilities.
    (3) One of the Assistant Secretaries shall have as his principal 
duty the overall supervision of the oversight of the defense and 
nondefense functions and budgets of the Sandia National Laboratories, 
the Los Alamos National Laboratory, and the Lawrence Livermore National 
Laboratory (or whatever laboratories (or portions of laboratories) 
carrying out the functions of such laboratories remain after 
reconfiguration, privatization, or closure (if any) pursuant to chapter 
2).
    (4) Each Assistant Secretary shall be compensated at the rate 
provided for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code.
    (e) Inspector General.--There shall be an Inspector General of the 
Agency, who shall be appointed as provided in section 3 of the 
Inspector General Act of 1978 (5 U.S.C. App. 3). The Inspector General 
shall perform the duties, have the responsibilities, and exercise the 
powers specified in the Inspector General Act of 1978 (5 U.S.C. App. 
3).
    (f) General Counsel.--There shall be a General Counsel of the 
Agency, who shall be appointed by the Under Secretary. The General 
Counsel shall be the chief legal officer for all legal matters arising 
from the conduct of the functions of the Agency. The General Counsel 
shall be compensated at the rate provided for level V of the Executive 
Schedule under section 5316 of title 5, United States Code.

SEC. 4053. FUNCTIONS OF DEFENSE NUCLEAR PROGRAMS AGENCY.

    (a) In General.--The Under Secretary for Defense Nuclear Programs 
shall be responsible for the exercise of all powers and the discharge 
of all duties of the Agency.
    (b) Transferred Functions.--The Under Secretary for Defense Nuclear 
Programs shall carry out all functions transferred to the Under 
Secretary pursuant to section 4054.
    (c) Staff Director of Nuclear Weapons Council.--Paragraph (2) of 
section 179(c) of title 10, United States Code, is amended to read as 
follows:
    ``(2) The Under Secretary for Defense Nuclear Programs shall be the 
Staff Director of the Council.''.

SEC. 4054. TRANSFERS OF FUNCTIONS.

    (a) Department of Energy.--(1) There are hereby transferred to the 
Under Secretary for Defense Nuclear Programs all functions performed by 
the Department of Energy on the day before the date of the enactment of 
this subtitle relating to the national security functions of the 
Department, including defense, nonproliferation, and defense-related 
environmental management programs.
    (2) There are hereby transferred to the Under Secretary for Defense 
Nuclear Programs all functions performed by the Department of Energy on 
the day before the date of the enactment of this subtitle relating to 
the oversight of the defense and nondefense functions and budgets of 
the following laboratories:
            (A) Sandia National Laboratories, Albuquerque, New Mexico, 
        and Livermore, California.
            (B) Los Alamos National Laboratory, Los Alamos, New Mexico.
            (C) Lawrence Livermore National Laboratory, California.
    (b) Defense Nuclear Agency.--There are hereby transferred to the 
Under Secretary for Defense Nuclear Programs all functions performed by 
the Defense Nuclear Agency of the Department of Defense on the day 
before the date of the enactment of this subtitle relating to nuclear 
weapons systems.
    (c) Defense Nuclear Facilities Safety Board.--There are hereby 
transferred to the Under Secretary for Defense Nuclear Programs all 
functions performed by the Defense Nuclear Facilities Safety Board on 
the day before the date of the enactment of this subtitle.
    (d) Other Nuclear Weapons-Related Functions.--The Secretary of 
Defense may transfer to the Under Secretary for Defense Nuclear 
Programs such other functions performed in the Department of Defense on 
the day before the date of the enactment of this subtitle relating to 
nuclear weapons as the Secretary considers appropriate.
    (e) Conforming Repeals.--
            (1) Assistant to the secretary of defense for atomic 
        energy.--Section 141 of title 10, United States Code, is hereby 
        repealed. The table of sections at the beginning of chapter 4 
        of such title is amended by striking out the item relating to 
        such section.
            (2) Defense nuclear facilities safety board.--Chapter 21 of 
        the Atomic Energy Act of 1954 (42 U.S.C. 2286) is hereby 
        repealed.
            (3) References.--Any reference to the Assistant Secretary 
        of Defense for Atomic Energy or the Defense Nuclear Facilities 
        Safety Board in any provision of law or in any rule, 
        regulation, or other paper of the United States shall be 
        treated as referring to the Under Secretary for Defense Nuclear 
        Programs.
SEC. 4055. LIMITATION ON TRANSFERS OF FUNDS.

    No amount appropriated to the Agency may be transferred to any 
other account (other than another account of the Agency) unless the 
transfer of such amount to such account is specifically authorized by 
law. No amount appropriated to the Department of Defense or another 
department or agency may be transferred to the Under Secretary for 
Defense Nuclear Programs or to an account for the Agency unless the 
transfer of such amount to such account is specifically authorized by 
law.

SEC. 4056. TRANSITION PROVISIONS.

    (a) Exercise of Authorities.--Except as otherwise provided by law, 
the Under Secretary for Defense Nuclear Programs may, for purposes of 
performing a function that is transferred to the Under Secretary by 
this chapter, exercise all authorities under any other provision of law 
that were available with respect to the performance of that function to 
the official responsible for the performance of that function on the 
day before the date of the enactment of this subtitle.
    (b) Authorities To Wind Up Affairs.--
            (1) In general.--(A) The Director of the Office of 
        Management and Budget may take such actions as the Director 
        considers necessary to wind up any outstanding affairs of the 
        Department of Energy associated with the functions that are 
        transferred pursuant to section 4054(a).
            (B) The Secretary of Defense may take such actions as the 
        Secretary considers necessary to wind up any outstanding 
        affairs of the Defense Nuclear Agency associated with the 
        functions that are transferred pursuant to section 4054(b), any 
        outstanding affairs of the Department of Defense associated 
        with any functions that may be transferred pursuant to section 
        4054(d), and any outstanding affairs of the Assistant to the 
        Secretary of Defense for Atomic Energy.
            (C) The Secretary of the Navy may take such actions as the 
        Secretary considers necessary to wind up any outstanding 
        affairs of the Strategic Systems Programs of the Department of 
        the Navy associated with the functions that are transferred 
        pursuant to section 4054(c).
            (D) The Director of the Office of Management and Budget may 
        take such actions as the Director considers necessary to wind 
        up any outstanding affairs of the Defense Nuclear Facilities 
        Safety Board.
            (2) Transfer of assets.--So much of the personnel, 
        property, records, and unexpended balances of appropriations, 
        allocations, and other funds employed, used, held, available, 
        or to be made available in connection with a function 
        transferred to the Under Secretary for Defense Nuclear Programs 
        by this chapter are transferred to the Under Secretary for use 
        in connection with the functions transferred.
            (3) Further measures and dispositions.--Such further 
        measures and dispositions as the President considers necessary 
        to effectuate the transfers referred to in subsection (b) shall 
        be carried out in such manner as the President directs and by 
        the heads of such agencies as the President designates.

SEC. 4057. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Inspector General Act of 1978.--Section 11 of the Inspector 
General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in paragraph (1), by inserting after ``International 
        Development,'' the following: ``the Defense Nuclear Programs 
        Agency,''; and
            (2) in paragraph (2), by striking out ``or the Social 
        Security Administration;'' and inserting in lieu thereof ``the 
        Social Security Administration, or the Defense Nuclear Programs 
        Agency;''.
    (b) Executive Schedule.--(1) Section 5313 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Under Secretary for Defense Nuclear Programs.''.
    (2) Section 5314 of title 5, United States Code, is amended by 
adding at the end the following:
            ``Deputy Under Secretary for Defense Nuclear Programs.''.
    (3) Section 5315 of title 5, United States Code, is amended by 
adding at the end the following:
            ``Assistant Secretaries, Defense Nuclear Programs Agency 
        (4).
            ``Inspector General, Defense Nuclear Programs Agency.''.
    (4) Section 5316 of title 5, United States Code, is amended by 
adding at the end the following:
            ``General Counsel, Defense Nuclear Programs Agency.''.

SEC. 4058. EFFECTIVE DATE AND TRANSITION PERIOD.

    (a) Effective Date.--Except as provided in subsection (b), this 
chapter shall take effect on the date of the enactment of this 
subtitle.
    (b) Delayed Effective Date for Establishment of Agency and 
Transfers of Functions.--Section 4052(a) and section 4054 of this 
chapter shall take effect one year after the date of the enactment of 
this subtitle.
    (c) Transition Period.--The Secretary of Defense, the Secretary of 
Energy, the Assistant to the Secretary of Defense for Atomic Energy, 
and the Defense Nuclear Facilities Safety Board shall, beginning as 
soon as practicable after the date of the enactment of this subtitle, 
plan for the orderly establishment of, and transfer of functions to, 
the Agency pursuant to this chapter.
    (d) Appointment Authority.--The President may make appointments 
under section 4052 notwithstanding the delayed effective date under 
subsection (b) for the establishment of the Agency.
SEC. 4059. ENVIRONMENTAL RESTORATION ACTIVITIES AT DEFENSE NUCLEAR 
              FACILITIES.

    (a) Amendment to CERCLA.--The Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) is 
amended by adding at the end the following new title:

  ``TITLE IV--ENVIRONMENTAL RESTORATION ACTIVITIES AT DEFENSE NUCLEAR 
                               FACILITIES
                    ``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.
                    ``Subtitle A--General Provisions

``SEC. 401. APPLICABILITY.

    ``Notwithstanding section 120, the provisions of this title shall 
apply with respect to selection of remedial actions at defense nuclear 
facilities.

``SEC. 402. DEFINITIONS.
    ``For purposes of this title:
            ``(1) The term `defense nuclear facility' means--
                    ``(A) a production facility or utilization facility 
                (as those terms are defined in section 11 of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2014)) that is under the 
                control or jurisdiction of the Under Secretary of 
                Defense for Defense Nuclear Programs and that is 
                operated for national security purposes (including the 
                tritium loading facility at Savannah River, South 
                Carolina, the 236 H facility at Savannah River, South 
                Carolina; and the Mound Laboratory, Ohio), but the term 
                does not include any facility that does not conduct 
                atomic energy defense activities and does not include 
                any facility or activity covered by Executive Order 
                Number 12344, dated February 1, 1982, pertaining to the 
                naval nuclear propulsion program;
                    ``(B) a nuclear waste storage or disposal facility 
                that is under the control or jurisdiction of the Under 
                Secretary of Defense for Defense Nuclear Programs;
                    ``(C) a testing and assembly facility that is under 
                the control or jurisdiction of the Under Secretary of 
                Defense for Defense Nuclear Programs and that is 
                operated for national security purposes (including the 
                Nevada Test Site, Nevada; the Pinnellas Plant, Florida; 
                and the Pantex facility, Texas);
                    ``(D) an atomic weapons research facility that is 
                under the control or jurisdiction of the Under 
                Secretary of Defense for Defense Nuclear Programs 
                (including the Lawrence Livermore, Los Alamos, and 
                Sandia National Laboratories); or
                    ``(E) any facility described in paragraphs (1) 
                through (4) that--
                            ``(i) is no longer in operation;
                            ``(ii) was under the control or 
                        jurisdiction of the Department of Defense, the 
                        Atomic Energy Commission, the Energy Research 
                        and Development Administration, or the 
                        Department of Energy; and
                            ``(iii) was operated for national security 
                        purposes.
    ``(2) The term `Under Secretary' means the Under Secretary of 
Defense for Defense Nuclear Programs.
    ``(3) The term `Administrator' means the Administrator of the 
Environmental Protection Agency.
               ``Subtitle B--Selection of Remedial Action

``SEC. 411. REVIEW OF ONGOING AND PLANNED REMEDIAL ACTIONS.

    ``Review of Ongoing and Planned Activities.--(1) Not later than one 
year after the date of the enactment of this title, the Under Secretary 
shall review each remedial action described in paragraph (2) for 
purposes of determining whether the remedial action was selected in a 
manner consistent with the requirements of this subtitle. If the Under 
Secretary determines the selection was not consistent with the 
requirements of this subtitle, the Under Secretary shall require the 
remedial action to be halted and a new remedial action selected in a 
manner consistent with the requirements of this subtitle.
    ``(2) Paragraph (1) applies to any remedial action at a defense 
nuclear facility--
            ``(A) which is ongoing as of the date of the enactment of 
        this title, including a facility for which construction is 
        ongoing or has been completed as of such date; or
            ``(B) for which construction is planned but has not yet 
        commenced as of such date of enactment.

``SEC. 412. SELECTION OF REMEDIAL ACTION.

    ``(a) In General.--The Under Secretary shall select a remedial 
action for a defense nuclear facility based upon consideration of a 
site-specific risk assessment conducted in accordance with section 413 
and an analysis of risk reduction benefits and costs conducted in 
accordance with section 414.
    ``(b) Requirement for Lowest Cost Action.--In selecting a remedial 
action, the Under Secretary shall select the lowest cost action which 
achieves a residual risk that is within the risk range goal established 
by the National Contingency Plan for protection of public health and 
the environment, unless--
            ``(1) the incremental benefits of a more expensive remedial 
        action justify incurring the incremental costs of the more 
        expensive remedy, as set forth in the analysis of risk 
        reductions cost and benefits for the remedial action pursuant 
        to section 414, in which case a more expensive remedy may be 
        selected, or
            ``(2) the benefits of the lowest cost remedy which achieves 
        a residual risk level within the risk range goal are not 
        reasonably related to the costs of such remedy, in which case a 
        less expensive remedy may be selected.
    ``(c) Consultation.--Before selection a remedial action and before 
public comment under subsection (d), the Under Secretary shall consult 
with the Administrator, officials of State, local, or tribal 
governments having jurisdiction over the property or, in the case of 
property which is exclusively under Federal jurisdiction, having 
jurisdiction over the surrounding areas. Such consultation shall 
include discussion of, at a minimum, current area demographics, land 
and water uses, and currently planned land and water uses, the 
determination of which shall remain the sole purview of the appropriate 
State, local, or tribal government with jurisdiction.--
    ``(d) Public Comment.--Before selection of a remedial action, the 
Under Secretary shall provide a period of not less than 30 days for 
public comment on the remedial action.
    ``(e) Certification.--The Under Secretary shall certify the 
following when selecting a remedial action:
            ``(1) That the analysis of risk reduction benefits and 
        costs for the remedial action pursuant to section 414 is based 
        on objective and unbiased scientific and economic evaluations 
        of all significant and relevant information and on risk 
        assessments provided to the agency by interested parties 
        relating to the costs, risks, and risk reduction and other 
        benefits of the remedial action selected.
            ``(2) That the incremental risk reduction or other benefits 
        of the remedial action will be likely to justify, and be 
        reasonably related to, the incremental costs incurred by the 
        Federal Government, by State, local, and tribal governments, 
        and other public and private entities.
            ``(3) That other alternative remedial actions identified or 
        considered by the agency were found to be less cost-effective 
        at achieving a substantially equivalent reduction in risk.
    ``(f) Administrative Record.--All documents considered by the Under 
Secretary shall be made part of the administrative record for purposes 
of judicial review.

``SEC. 413. SITE-SPECIFIC RISK ASSESSMENT.

    ``(a) In General.--(1) A site-specific risk assessment shall be 
performed in accordance with this section before the selection of a 
remedial action at a defense nuclear facility. The Under Secretary 
shall apply the principles set forth in subsection (b) in order to 
ensure that a site-specific risk assessment--
            ``(A) distinguishes scientific findings from other 
        considerations;
            ``(B) is, to the extent feasible, scientifically objective, 
        unbiased, and inclusive of all relevant data; and
            ``(C) relies, to the extent available and practicable, on 
        factual site-specific data.
    ``(2) Discussions or explanations required under this section need 
not be repeated in each risk assessment document as long as there is a 
reference to the relevant discussions or explanation in another agency 
document which is available to the public.
    ``(b) Principles.--The principles to be applied in conducting a 
site-specific risk assessment are as follows:
            ``(1) When discussing human health risks, a site-specific 
        risk assessment shall contain a discussion of both relevant 
        laboratory and relevant epidemiologic data of sufficient 
        quality which finds, or fails to find, a correlation between 
        health risks and a potential toxin or activity. Where conflicts 
        among such data appear to exist, or where animal data is used 
        as a basis to assess human health, the site-specific risk 
        assessment shall, to the extent feasible and appropriate, 
        include discussion of possible reconciliation of conflicting 
        information, and, as relevant, differences in study designs, 
        comparative physiology, routes of exposure, bioavailability, 
        pharmacokinetics, and any other relevant factor, including the 
        sufficiency of basic data for review. The discussion of 
        possible reconciliation should indicate whether there is a 
        biological basis to assume a resulting harm in humans. Animal 
        data shall be reviewed with regard to its relevancy to humans.
            ``(2) Where a site-specific risk assessment involves 
        selection of any significant default value, assumption, 
        inference, or model, the risk assessment document shall, to the 
        extent feasible--
                    ``(A) present a representative list and explanation 
                of plausible and alternative assumptions, inferences, 
                or models;
                    ``(B) explain the basis for any choices;
                    ``(C) identify any policy or value judgments;
                    ``(D) fully describe any model used in the risk 
                assessment and make explicit the assumptions 
                incorporated in the model; and
                    ``(E) indicate the extent to which any significant 
                model has been validated by, or conflicts with, 
                empirical data.
            ``(3) The site-specific risk assessment shall meet each of 
        the following requirements regarding risk characterization and 
        communication:
                    ``(A) The risk characterization shall describe the 
                populations or natural resources which are the subject 
                of the risk characterization. If a numerical estimate 
                of risk is provided, the agency shall, to the extent 
                feasible, provide--
                            ``(i) the best estimate or estimates for 
                        the specific populations or natural resources 
                        which are the subject to the characterization 
                        (based on the information available to the 
                        Federal agency); and
                            ``(ii) a statement of the reasonable range 
                        of scientific uncertainties.
                In addition to such best estimate or estimates, the 
                risk characterization document may present plausible 
                upper-bound or conservative estimates in conjunction 
                with plausible lower-bound estimates. Where 
                appropriate, the risk characterization document may 
                present, in lieu of a single best estimate, multiple 
                best estimates based on assumptions, inferences, or 
                models which are equally plausible, given current 
                scientific understanding. To the extent practicable and 
                appropriate, the document shall provide descriptions of 
                the distribution and probability of risk estimates to 
                reflect differences in exposure variability or 
                sensitivity in populations and attendance 
                uncertainties. Sensitive subpopulations or highly 
                exposed subpopulations include, where relevant and 
                appropriate, children, the elderly, pregnant women, and 
                disabled persons.
                    ``(B) Exposure scenarios shall be based on actual 
                exposure pathways and currently planned future land and 
                water uses as established by any local governmental 
                authorities with jurisdiction over the property and 
                shall consider the availability of alternative water 
                supplies. To the extent feasible, the site-specific 
                risk assessment shall include a statement of the size 
                of the population at risk under any proposed exposure 
                scenario and the likelihood of such scenario. Exposure 
                scenarios shall explicitly identify those exposure 
                scenarios which result in plausible completed exposure 
                pathways.
                    ``(C) A site-specific risk assessment shall contain 
                a statement that places the magnitude of risks to human 
                health, safety, or the environment in context. Such 
                statement shall, to the extent feasible, provide 
                comparisons with estimates of greater, lesser, and 
                substantially equivalent risks that are familiar to and 
                routinely encountered by the general public as well as 
                other risks, and where appropriate and meaningful, 
                comparisons of those risks with other similar risks 
                regulated by the Federal agency resulting from 
                comparable activities and exposure pathways. Such 
                comparisons should consider relevant distinctions among 
                risks, such as the voluntary or involuntary nature of 
                risks and the preventability or nonpreventability of 
                risks.
                    ``(D) Each site-specific risk assessment shall 
                include a statement of any significant substitution 
                risks to human health, where information on such risks 
                has been provided to the Under Secretary.
                    ``(E) If a commenter provides the Under Secretary 
                with a relevant risk assessment and a summary thereof 
                in a timely fashion and the risk assessment is 
                consistent with the principles and the guidance 
                provided under this section, the Under Secretary shall, 
                to the extent feasible, present such summary in 
                connection with the presentation of the site-specific 
                risk assessment. Nothing in this paragraph shall be 
                construed to limit the inclusion of any comments or 
                material supplied by any person to the administrative 
                record of any proceeding.
            ``(4) A site-specific risk assessment may satisfy the 
        requirements of subparagraph (C), (D), or (E) of paragraph (3) 
        by reference to information or material otherwise available to 
        the public if the document provides a brief summary of such 
        information or material.

``SEC. 414. ANALYSIS OF RISK REDUCTION BENEFITS AND COSTS.

    ``(a) In General.--The Under Secretary shall prepare an analysis of 
risk reduction benefits and costs in accordance with this section 
before the selection of a remedial action at a defense nuclear 
facility.
    ``(b) Contents of Analysis.--An analysis of risk reduction benefits 
and costs for a remedial action shall contain the following:
            ``(1) An identification of reasonable alternative 
        strategies, including strategies that are proposed during a 
        public comment period.
            ``(2) An analysis of the incremental costs and incremental 
        risk reduction or other benefits associated with each 
        alternative remedial action identified or considered. Costs and 
        benefits shall be quantified to the extent feasible and 
        appropriate and may otherwise be qualitatively described.
            ``(3) A statement that places in context the nature and 
        magnitude of the risks to be addressed and the residual risks 
        likely to remain for each alternative strategy identified or 
        considered by the Under Secretary. Such statement shall, to the 
        extent feasible, provide comparisons with estimates of greater, 
        lesser, and substantially equivalent risks that are familiar to 
        and routinely encountered by the general public as well as 
        other risks and, where appropriate and meaningful, comparisons 
        of those risks with other similar risks regulated by the 
        Federal Government resulting from comparable activities and 
        exposure pathways. Such comparisons should consider relevant 
        distinctions among risks, such as the voluntary or involuntary 
        nature of risks and the preventability or nonpreventability of 
        risks.
            ``(4) An analysis of whether the identified benefits of the 
        remedial action are likely to exceed the identified costs of 
        the remedial action.''.
    (b) Conforming Amendment.--Section 120(a)(3) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9620(a)(3)) is amended by inserting after the second sentence 
the following: ``This subsection also shall not apply to the extent 
otherwise provided in title IV with respect to selection of remedial 
actions at defense nuclear facilities.''.
    (c) Renegotiation of Compliance Agreements.--
            (1) Requirement.--For each defense nuclear facility with 
        respect to which a compliance agreement has been entered into 
        by the Secretary of Energy, the Environmental Protection 
        Agency, and a State as of the date of the enactment of this 
        subtitle, the Under Secretary of Defense for Defense Nuclear 
        Programs shall enter into negotiations with the Environmental 
        Protection Agency and the State concerned to renegotiate the 
        terms of the compliance agreement to reflect title IV of the 
        Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980, as added by subsection (a).
            (2) Deadline.--The Under Secretary of Defense for Defense 
        Nuclear Programs shall complete renegotiation of compliance 
        agreements as required by paragraph (1) not later than one year 
        after the date of the enactment of this subtitle.
CHAPTER 6--DISPOSITION OF MISCELLANEOUS PARTICULAR PROGRAMS, FUNCTIONS, 
                       AND AGENCIES OF DEPARTMENT
SEC. 4061. ENERGY RESEARCH AND DEVELOPMENT.

    (a) General Rule.--Except as otherwise provided in this subtitle, 
Energy Supply Research and Development activities of the Department of 
Energy, including Basic Energy Sciences, Magnetic Fusion Energy, Solar 
and Renewable Energy, Nuclear Fission, and Biological and Environmental 
Sciences research and development, and all other research and 
development activities of the Department of Energy other than General 
Science and Research activities, shall be terminated within 2 years 
after the effective date stated in section 4064(a).
    (b) Critical Research.--
            (1) Administrator.--Within 1 year of the date of the 
        enactment of this Act, the Administrator shall identify in a 
        report to Congress all research and development activities of 
        the Department of Energy, other than activities carried out at 
        energy laboratories (as such term is defined in section 4028(5) 
        of this subtitle), that perform a critical research function of 
        importance to the long-term economic wellbeing of the United 
        States. Such report shall include recommendations for the 
        transfer of such activities to appropriate Federal agencies.
            (2) Energy laboratory facilities commission.--Within 1 year 
        of the date of the enactment of this Act, the Energy Laboratory 
        Facilities Commission established under section 4021(a) of this 
        subtitle shall identify in a report to Congress all research 
        and development activities of the Department of Energy carried 
        out at energy laboratories (as such term is defined in section 
        4028(5) of this subtitle), that perform a critical research 
        function of importance to the long-term economic wellbeing of 
        the United States. Such report shall include recommendations 
        for the transfer of such activities to appropriate Federal 
        agencies.
            (3) Coordination.--The Administrator and the Energy 
        Laboratory Facilities Commission shall coordinate the execution 
        of their respective responsibilities under paragraphs (1) and 
        (2).
    (c) Termination of Programs.--
            (1) Clean coal technology.--The Secretary of Energy shall 
        terminate all clean coal technology research and development 
        activities of the Department of Energy.
            (2) Fossil energy and energy conservation.--There are 
        authorized to be appropriated to the Secretary of Energy--
                    (A) for fossil energy research and development 
                activities of the Department of Energy--
                            (i) $150,000,000 for fiscal year 1996;
                            (ii) $135,000,000 for fiscal year 1997; and
                            (iii) $120,000,000 for fiscal year 1998; 
                        and
                    (B) for energy conservation research and 
                development activities of the Department of Energy--
                            (i) $427,000,000 for fiscal year 1996;
                            (ii) $412,000,000 for fiscal year 1997; and
                            (iii) $397,000,000 for fiscal year 1998.
        The fossil energy and energy conservation research and 
        development activities of the Department of Energy shall be 
        terminated at the end of fiscal year 1998.
    (d) Transfer of Programs.--The following activities of the 
Department of Energy shall, no later than 60 days after the date of the 
enactment of this Act, be transferred to the Department of Defense:
            (1) All activities described under the category ``Weapons 
        Activities'' in the annual budget request of the President for 
        fiscal year 1996, including weapons stockpile stewardship and 
        management.
            (2) All activities described under the category ``Materials 
        Support and Other Defense Programs'' in the annual budget 
        request of the President for fiscal year 1996.
    (e) Progress Reports.--The Secretary of Energy shall, every 90 days 
after the date of the enactment of this Act until the completion of the 
execution of subsections (c) and (d), transmit to the Congress a report 
on the progress made toward such execution.
SEC. 4062. ENERGY INFORMATION ADMINISTRATION.

    There are hereby transferred to the Department of the Treasury all 
functions performed by the Energy Information Administration on the day 
before the effective date of this section. There are authorized to be 
appropriated for carrying out the activities of the Energy Information 
Administration $44,000,000 for each of the fiscal years 1996 through 
2000.

SEC. 4063. ENERGY REGULATORY ADMINISTRATION.

    (a) Transfer of International Regulatory Functions.--There are 
hereby transferred to the Secretary of Agriculture all international 
regulatory functions performed by the Energy Regulatory Administration 
on the day before the effective date of this section.
    (b) Transfer of Litigation Functions.--There are hereby transferred 
to the Attorney General all functions performed by the Energy 
Regulatory Administration with respect to pending litigation on the day 
before the effective date of this section.

SEC. 4064. EFFECTIVE DATE.

    (a) General Rule.--Except as provided in subsection (b), this 
chapter shall take effect on the date specified in section 4019(a) of 
this subtitle.
    (b) Exceptions.--Section 4061(c), (d), and (e), shall take effect 
on the date of the enactment of this Act.

                    CHAPTER 7--INTERIM WASTE STORAGE

SEC. 4071. WASTE SITE WORK UNDER NUCLEAR WASTE POLICY ACT OF 1982.

    All work under subtitles A and B of title I of the Nuclear Waste 
Policy Act of 1982 shall be terminated 90 days after the date of the 
enactment of this Act.
SEC. 4072. OFFICE OF CIVILIAN RADIOACTIVE WASTE MANAGEMENT.

    Effective upon the expiration of the third calendar month beginning 
after the date of the enactment of this Act, section 304 of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10224) is amended to read as 
follows:

                   ``united states geological survey

    ``Sec. 304. The Office of Civilian Radioactive Waste Management 
(referred to in this section as the `office') is terminated and the 
authority and assets of the office with respect to its activities under 
title I respecting a repository for radioactive waste and spent nuclear 
fuel is transferred to the United States Geological Survey (referred to 
in this section as the `USGS').''.

SEC. 4073. INTERIM STORAGE AT FEDERAL FACILITY.

    (a) Authorization and Location of Federal Facility.--
            (1) Site.--The Corps of Engineers shall design, construct, 
        and operate a facility for the interim storage of high-level 
        radioactive waste and spent nuclear fuel. The Nuclear Waste 
        Technical Review Board established under title V of the Nuclear 
        Waste Policy Act of 1982 shall select the site for the 
        facility. The United States Geological Survey shall conduct 
        site characterization, in accordance with section 131 of such 
        Act (42 U.S.C. 10133), of the site selected by such Board. Such 
        site shall be at a location under the jurisdiction of the 
        Department of Energy.
            (2) License.--The interim storage facility shall be 
        licensed by the Commission in accordance with its regulations 
        governing the licensing of independent high-level radioactive 
        waste and spent fuel storage installations, as modified in 
        accordance with this section, and shall commence operation as 
        soon as practicable.
    (b) Capacity.--The interim storage facility shall be designed to 
provide sufficient capacity to store high-level radioactive waste and 
spent nuclear fuel from civilian nuclear power plants until the Corps 
of Engineers is able to transfer the high-level radioactive waste and 
spent fuel. In no event shall the design capacity of the interim 
storage facility be less than 40,000 MTU and the capacity of such 
facility shall be expandable.
    (c) Design.--The interim storage facility shall satisfy the 
following design criteria:
            (1) The design shall be expandable so that additional 
        storage capacity can be added as necessary.
            (2) To the extent practicable, the design shall be based on 
        the use of multi-purpose canister systems developed under 
        section 4025 and certified by the Commission for the storage 
        and transportation of high-level radioactive waste and spent 
        nuclear fuel.
            (3) Consistent with the design objective specified in 
        paragraph (2), the design shall provide for the use of such 
        other storage technologies as are licensed or certified by the 
        Commission for use at the interim storage facility as necessary 
        to ensure compatibility between the interim storage facility 
        and contract holders' high-level radioactive waste and spent 
        nuclear fuel and facilities, and to facilitate the Corps of 
        Engineers's ability to meet the Corps of Engineers's 
        obligations under this title.
    (d) Licensing.--
            (1) No later than 6 months from the date of enactment of 
        this Act, the Corps of Engineers shall submit to the Commission 
        an application for a license for the interim storage facility 
        pursuant to the Commission's regulations governing the 
        licensing of independent high-level radioactive waste and spent 
        fuel storage installations. Such license application shall be 
        accompanied by a Safety Analysis Report and an Environmental 
        Report, as required by such regulations.
            (2) No later than 3 months from the date of enactment of 
        this Act, the Commission shall amend its regulations governing 
        the licensing of independent high-level radioactive waste and 
        spent fuel storage installations as necessary and appropriate 
        to carry out the purposes of this section. Such amendments 
        shall incorporate the following provisions--
                    (A) the license shall be issued in phases as 
                necessary to support the commencement of operations at 
                the interim storage facility as soon as practicable, 
                but no later than January 31, 1998;
                    (B) the license shall authorize a storage capacity 
                of no less than 40,000 MTU, except that the Commission 
                may license an initial storage capacity of less than 
                40,000 MTU in accordance with subparagraph (A) to 
                permit the commencement of operations; and
                    (C) the license shall be issued for an initial term 
                of up to 100 years, and shall be renewable for 
                additional terms upon application of the Corps of 
                Engineers.
            (3) The Commission shall consider the Corps of Engineers's 
        license application in accordance with the provisions of this 
        title and the Commission's regulations governing the licensing 
        of independent high-level radioactive waste and spent fuel 
        storage installations, as amended in accordance with this 
        title, except that the Commission shall issue a final decision 
        granting or denying the license no later than 18 months from 
        the date of the submittal of the license application.
    (e) Additional Authority.--
            (1) The Corps of Engineers is authorized to commence 
        construction of the interim storage facility subsequent to 
        submittal of the license application. The Commission shall 
        issue an order suspending such construction at any time if the 
        Commission determines that such construction poses an 
        unreasonable risk to public health and safety or the 
        environment. The Commission shall terminate all or part of such 
        order upon a determination that the Corps of Engineers has 
        taken appropriate action to eliminate such risk.
            (2) For a temporary period beginning with issuance of the 
        license for the interim storage facility, the Commission shall 
        authorize the Corps of Engineers, at the Corps of Engineers' 
        request, to utilize any facility owned by the Federal 
        Government on the date of enactment of this Act and within the 
        boundaries of the interim storage facility site, whether or not 
        such facility is licensed by the Commission, in connection with 
        the storage, transportation, and handling of high-level 
        radioactive waste and spent nuclear fuel at the interim storage 
        facility if the Commission establishes reasonable terms and 
        conditions for use of such facility in the license for the 
        interim storage facility and if the Commission oversees the use 
        of such facility to assure that such use does not pose an 
        unreasonable risk to public health and safety and the 
        environment.
    (f) National Environmental Policy Act of 1969.--
            (1) The Corps of Engineers shall comply with any 
        environmental requirements imposed by Commission regulations 
        applicable to the licensing of independent high-level 
        radioactive waste and spent fuel storage installations, 
        including the required submission of environmental reports, in 
        like manner as a private applicant. No activity of the Corps of 
        Engineers under this section, including the selection of a site 
        for the interim storage facility, the preparation and submittal 
        of a license application for such facility, and the 
        construction and operation of such facility shall be considered 
        a major Federal action significantly affecting the quality of 
        the human environment for purposes of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). No 
        such activity shall require the preparation of an environmental 
        impact statement under section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) or 
        require any environmental review under subparagraph (E) or (F) 
        of such Act.
            (2)(A) Any licensing action by the Commission under this 
        section shall be accompanied by an Environmental Impact 
        Statement prepared under section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). In 
        preparing such Environmental Impact Statement, the Commission--
                    (i) shall assume that 100,000 MTU will be stored at 
                the facility; and
                    (ii) shall analyze the impacts of the 
                transportation of high-level radioactive waste and 
                spent nuclear fuel to the interim storage facility in a 
                generic manner.
            (B) Such Environmental Impact Statement shall not 
        consider--
                    (i) the need for the interim storage facility, 
                including any individual component thereof;
                    (ii) the time of the initial availability of the 
                interim storage facility;
                    (iii) any alternatives to the storage of high-level 
                radioactive waste and spent nuclear fuel at the interim 
                storage facility;
                    (iv) any alternatives to the site of the facility 
                as designated by the Corps of Engineers in accordance 
                with subsection (a);
                    (v) any alternatives to the design criteria for 
                such facility or any individual component thereof, as 
                specified by the Corps of Engineers in the license 
                application; or
                    (vi) the environmental impacts of the storage of 
                high-level radioactive waste and spent nuclear fuel at 
                the interim storage facility beyond the initial term of 
                the license or the term of the renewal period for which 
                a license renewal application is made.
    (g) Storage of High-Level Radioactive Waste and Spent Nuclear 
Fuel.--The Corps of Engineers shall begin storing high-level 
radioactive waste and spent nuclear fuel at the interim storage 
facility at the earliest practicable date, but no later than January 
31, 1998. Subject to the budget priorities established in section 4041, 
all actions by the Corps of Engineers, the Commission, the Corps of 
Engineers of the Interior, or any Federal agency or officer with 
respect to consideration of applications or requests for the issuance 
or grant of any authorization related to the interim storage facility, 
including the certification of multi-purpose canister systems, shall be 
expedited, and any such application or request shall take precedence 
over any other activity not related to the interim storage facility.
    (h) Judicial Review.--
            (1) The Corps of Engineers' actions under this section, 
        including to the Corps of Engineers' siting and design of the 
        interim storage facility, application for a facility license, 
        issuance of a Safety Analysis Report and Environmental Report, 
        and construction of the facility, shall not be subject to 
        judicial review under any law.
            (2) Judicial review of the Commission's Environmental 
        Impact Statement shall be consolidated with judicial review of 
        the Commission's licensing decision.
            (3) No court shall have jurisdiction to enjoin the 
        construction or operation of the interim storage facility prior 
        to its final decision on review of the Commission's licensing 
        action.
    (i) Waste Confidence.--The Corps of Engineers' obligation to 
construct and operate the interim storage facility in accordance with 
this section and the Corps of Engineers' obligation to develop an 
integrated high-level radioactive waste and spent nuclear fuel 
management system in accordance with the provisions of this title, 
shall provide sufficient and independent grounds for any further 
findings by the Commission of reasonable assurance that high-level 
radioactive waste and spent nuclear fuel and high-level radioactive 
waste will be disposed of safely for purposes of the Commission's 
decision to grant or amend any license to operate any civilian nuclear 
power reactor under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
seq.).
    (j) Storage of Material Other Than Commercial High-Level 
Radioactive Waste and Spent Nuclear Fuel.--
            (1) Nothing contained in this section shall prohibit--
                    (A) the Commission from establishing criteria for 
                the issuance of an amendment to the interim storage 
                facility license authorizing storage of high-level 
                radioactive waste or spent nuclear fuel from atomic 
                energy defense activities in the interim storage 
                facility; and
                    (B) the Corps of Engineers from seeking a license 
                amendment to allow for the storage of high-level 
                radioactive waste or spent nuclear fuel from atomic 
                energy defense activities at the interim storage 
                facility.
            (2) The acceptance at the interim storage facility of high-
        level radioactive waste or spent nuclear fuel resulting from 
        atomic energy defense activities shall not affect the 
        acceptance of high-level radioactive waste and spent nuclear 
        fuel in accordance with the acceptance schedule.

                  CHAPTER 8--MISCELLANEOUS PROVISIONS

SEC. 4081. REFERENCES.

    Any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to an office from which a function is transferred by this 
subtitle--
            (1) to the Secretary of Energy or an officer of the 
        Department of Energy, is deemed to refer to the head of the 
        department or office to which such function is transferred; or
            (2) to the Department of Energy is deemed to refer to the 
        department or office to which such function is transferred.

SEC. 4082. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a 
function is transferred by this subtitle may, for purposes of 
performing the function, exercise all authorities under any other 
provision of law that were available with respect to the performance of 
that function to the official responsible for the performance of the 
function immediately before the effective date of the transfer of the 
function under this subtitle.

SEC. 4083. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, the Secretary of Energy, any 
        officer or employee of any office transferred by this subtitle, 
        or any other Government official, or by a court of competent 
        jurisdiction, in the performance of any function that is 
        transferred by this subtitle, and
            (2) that are in effect on the effective date of such 
        transfer (or become effective after such date pursuant to their 
        terms as in effect on such effective date),
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, any other authorized official, a court of competent 
jurisdiction, or operation of law.
    (b) Proceedings.--This subtitle shall not affect any proceedings or 
any application for any benefits, service, license, permit, 
certificate, or financial assistance pending on the date of the 
enactment of this Act before an office transferred by this subtitle, 
but such proceedings and applications shall be continued. Orders shall 
be issued in such proceedings, appeals shall be taken therefrom, and 
payments shall be made pursuant to such orders, as if this subtitle had 
not been enacted, and orders issued in any such proceeding shall 
continue in effect until modified, terminated, superseded, or revoked 
by a duly authorized official, by a court of competent jurisdiction, or 
by operation of law. Nothing in this subsection shall be considered to 
prohibit the discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent that such 
proceeding could have been discontinued or modified if this subtitle 
had not been enacted.
    (c) Suits.--This subtitle shall not affect suits commenced before 
the date of the enactment of this Act, and in all such suits, 
proceeding shall be had, appeals taken, and judgments rendered in the 
same manner and with the same effect as if this subtitle had not been 
enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Department of Energy or the Secretary of 
Energy, or by or against any individual in the official capacity of 
such individual as an officer or employee of an office transferred by 
this subtitle, shall abate by reason of the enactment of this subtitle.
    (e) Continuance of Suits.--If any officer of the Department of 
Energy or the Energy Programs Resolution Agency in the official 
capacity of such officer is party to a suit with respect to a function 
of the officer, and under this subtitle such function is transferred to 
any other officer or office, then such suit shall be continued with the 
other officer or the head of such other office, as applicable, 
substituted or added as a party.

SEC. 4084. TRANSFER OF ASSETS.

    Except as otherwise provided in this subtitle, so much of the 
personnel, property, records, and unexpended balances of 
appropriations, allocations, and other funds employed, used, held, 
available, or to be made available in connection with a function 
transferred to an official by this subtitle shall be available to the 
official at such time or times as the Director of the Office of 
Management and Budget directs for use in connection with the functions 
transferred.

SEC. 4085. DELEGATION AND ASSIGNMENT.

    Except as otherwise expressly prohibited by law or otherwise 
provided in this subtitle, an official to whom functions are 
transferred under this subtitle (including the head of any office to 
which functions are transferred under this subtitle) may delegate any 
of the functions so transferred to such officers and employees of the 
office of the official as the official may designate, and may authorize 
successive redelegations of such functions as may be necessary or 
appropriate. No delegation of functions under this section or under any 
other provision of this subtitle shall relieve the official to whom a 
function is transferred under this subtitle of responsibility for the 
administration of the function.

SEC. 4086. AUTHORITY OF OFFICE OF MANAGEMENT AND BUDGET WITH RESPECT TO 
              FUNCTIONS TRANSFERRED.

    (a) Determinations.--If necessary, the Office of Management and 
Budget shall make any determination of the functions that are 
transferred under this subtitle.
    (b) Incidental Transfers.--The Director of the Office of Management 
and Budget, at such time or times as the Director shall provide, may 
make such determinations as may be necessary with regard to the 
functions transferred by this subtitle, and to make such additional 
incidental dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out the provisions of 
this subtitle. The Director of the Office of Management and Budget 
shall provide for the termination of the affairs of all entities 
terminated by this subtitle and for such further measures and 
dispositions as may be necessary to effectuate the purposes of this 
subtitle.

SEC. 4087. PROPOSED CHANGES IN LAW.

    Not later than one year after the date of the enactment of this 
Act, the Director of the Office of Management and Budget shall submit 
to the Congress a description of any changes in Federal law necessary 
to reflect abolishments, transfers, terminations, and disposals under 
this subtitle.

SEC. 4088. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFER.

    For purposes of this chapter, the vesting of a function in a 
department or office pursuant to reestablishment of an office shall be 
considered to be the transfer of the function.

SEC. 4089. DEFINITIONS.

    Except as otherwise provided in this subtitle, for purposes of this 
subtitle the following definitions apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Energy Programs Resolution Agency.
            (2) Agency.--The term ``Agency'' means the Energy Programs 
        Resolution Agency.
            (3) Function.--The term ``function'' includes any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        activity, or program.
            (4) Office.--The term ``office'' includes any office, 
        administration, agency, institute, council, unit, 
        organizational entity, or component thereof.
            (5) Termination date.--The term ``termination date'' means 
        the termination date under section 4016(d).
            (6) Wind-up period.--The term ``wind-up period'' means the 
        period beginning on the effective date specified in section 
        4019(a) and ending on the termination date.
         Subtitle B--Reform Federal Petroleum Reserve Programs
SEC. 4101. SALE OF NAVAL PETROLEUM RESERVES.

    (a) Finding.--Congress finds the following:
            (1) The continued control and use of the naval petroleum 
        reserves (as defined in section 7420(2) of title 10, United 
        States Code) by the United States is no longer necessary to 
        promote the national security interests of the United States.
            (2) The sale of the naval petroleum reserves by the United 
        States would eliminate the costs currently incurred by the 
        Secretary of Energy to operate the naval petroleum reserves and 
        would be a source of revenue to reduce the Federal budget 
        deficit.
    (b) Sale Required.--The Secretary of Energy shall sell all right, 
title, and interest of the United States in and to naval petroleum 
reserves. The Secretary shall complete the sale of the naval petroleum 
reserves not later than the end of the ____-year period beginning on 
the date of the enactment of this Act. The Secretary may extend such 
time period if the Secretary notifies Congress before the end of such 
period that, as a result of the condition specified in subsection 
(c)(1), the Secretary will be unable to complete the sale of the naval 
petroleum reserves within such time period.
    (c) Conditions on Sale.--(1) Notwithstanding subsection (b), the 
naval petroleum reserves may not be sold for less than the fair market 
value, as determined by the Secretary of Energy.
    (2) The Secretary of Energy shall conduct sales under subsection 
(b) using competitive procedures. All sales shall be made to the 
highest responsible qualified bidder or bidders, as determined by the 
Secretary. The Secretary may establish such bidding terms and 
conditions as the Secretary considers to be necessary and appropriate, 
including the establishment of sale units and minimum bids.
    (d) Purchaser To Be Held Harmless.--No purchaser under this section 
of any right, title, or interest of the United States in the naval 
petroleum reserves shall be liable for any claim of liability arising 
exclusively from or during the ownership of the interest by the United 
States. Such a claim of liability may be asserted only against the 
United States to the extent and in the manner provided by law.
    (e) Congressional Consultation.--(1) The Secretary of Energy shall 
periodically notify Congress of the progress of the Secretary in 
selling the naval petroleum reserves under this section.
    (2) The Congressional consultation and Presidential approval 
requirements of section 7431(a) of title 10, United States Code, 
regarding each individual sale of a portion of the naval petroleum 
reserves shall not apply to sales under this section.
    (f) Proceeds of Sale.--(1) The Secretary of Energy may use the 
proceeds resulting from sales of the naval petroleum reserves under 
this section to satisfy any contractual obligations of the United 
States directly related to the sales, and to pay any liability of the 
Department of Energy arising under any relevant Federal law concerning 
the environment with respect to the interests sold.
    (2) Funds remaining following operation of paragraph (1) from the 
sales of the naval petroleum reserves shall be deposited into the 
general fund of the Treasury for the purpose of reducing the Federal 
budget deficit.
SEC. 4102. STRATEGIC PETROLEUM RESERVE ACQUISITIONS.

    Notwithstanding part B of title I of the Energy Policy and 
Conservation Act (42 U.S.C. 6231 et seq.), after the date of enactment 
of this Act the Secretary of Energy shall not obligate any funds for 
the acquisition of petroleum products for the Strategic Petroleum 
Reserve.
    Subtitle C--Reform Fossil Fuel and Mineral Research Development 
                                Programs
SEC. 4201. PRIVATIZATION OF UNITED STATES ENRICHMENT CORPORATION.

    (a) Reference.--Except as otherwise expressly provided, whenever in 
this section an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
    (b) Production Facility.--Paragraph v. of section 11 (42 U.S.C. 
2014 v.) is amended by striking ``or the construction and operation of 
a uranium enrichment production facility using Atomic Vapor Laser 
Isotope Separation technology''.
    (c) Definitions.--Section 1201 (42 U.S.C. 2297) is amended--
            (1) in paragraph (4), by inserting before the period the 
        following: ``and any successor corporation established through 
        privatization of the Corporation'';
            (2) by redesignating paragraphs (10) through (13) as 
        paragraphs (14) through (17), respectively, and by inserting 
        after paragraph (9) the following new paragraphs:
            ``(10) The term `low-level radioactive waste' has the 
        meaning given such term in section 102(9) of the Low-Level 
        Radioactive Waste Policy Amendments Act of 1985 (42 U.S.C. 
        2021b(9)).
            ``(11) The term `mixed waste' has the meaning given such 
        term in section 1004(41) of the Solid Waste Disposal Act (42 
        U.S.C. 6903(41)).
            ``(12) The term `privatization' means the transfer of 
        ownership of the Corporation to private investors pursuant to 
        chapter 25.
            ``(13) The term `privatization date' means the date on 
        which 100 percent of ownership of the Corporation has been 
        transferred to private investors.'';
            (3) by inserting after paragraph (17) (as redesignated) the 
        following new paragraph:
            ``(18) The term `transition date' means July 1, 1993.''; 
        and
            (4) by redesignating the unredesignated paragraph (14) as 
        paragraph (19).
    (d) Employees of the Corporation.--
            (1) Paragraph (2).--Paragraphs (1) and (2) of section 
        1305(e) (42 U.S.C. 2297b-4(e)(1)(2)) are amended to read as 
        follows:
                    ``(A) In general.--It is the purpose of this 
                subsection to ensure that the privatization of the 
                Corporation shall not result in any adverse effects on 
                the pension benefits of employees at facilities that 
                are operated, directly or under contract, in the 
                performance of the functions vested in the Corporation.
                    ``(B) Applicability of existing collective 
                bargaining agreement.--The Corporation shall abide by 
                the terms of the collective bargaining agreement in 
                effect on the privatization date at each individual 
                facility.''.
            (2) Paragraph (4).--Paragraph (4) of section 1305(e) (42 
        U.S.C. 2297b-4(e)(4)) is amended--
                    (A) by striking ``and detailees'' in the heading;
                    (B) by striking the first sentence;
                    (C) in the second sentence, by inserting ``from 
                other Federal employment'' after ``transfer to the 
                Corporation''; and
                    (D) by striking the last sentence.
    (e) Marketing and Contracting Authority.--
            (1) Marketing authority.--Section 1401(a) (42 U.S.C. 
        2297c(a)) is amended effective on the privatization date (as 
        defined in section 1201(13) of the Atomic Energy Act of 1954)--
                    (A) by amending the subsection heading to read 
                ``Marketing Authority.--''; and
                    (B) by striking the first sentence.
            (2) Transfer of contracts.--Section 1401(b) (42 U.S.C. 
        2297c(b)) is amended--
                    (A) in paragraph (2)(B), by adding at the end the 
                following: ``The privatization of the Corporation shall 
                not affect the terms of, or the rights or obligations 
                of the parties to, any such power purchase contract.''; 
                and
                    (B) by adding at the end the following:
            ``(3) Effect of transfer.--
                    ``(A) As a result of the transfer pursuant to 
                paragraph (1), all rights, privileges, and benefits 
                under such contracts, agreements, and leases, including 
                the right to amend, modify, extend, revise, or 
                terminate any of such contracts, agreements, or leases 
                were irrevocably assigned to the Corporation for its 
                exclusive benefit.
                    ``(B) Notwithstanding the transfer pursuant to 
                paragraph (1), the United States shall remain obligated 
                to the parties to the contracts, agreements, and leases 
                transferred pursuant to paragraph (1) for the 
                performance of the obligations of the United States 
                thereunder during the term thereof. The Corporation 
                shall reimburse the United States for any amount paid 
                by the United States in respect of such obligations 
                arising after the privatization date to the extent such 
                amount is a legal and valid obligation of the 
                Corporation then due.
                    ``(C) After the privatization date, upon any 
                material amendment, modification, extension, revision, 
                replacement, or termination of any contract, agreement, 
                or lease transferred under paragraph (1), the United 
                States shall be released from further obligation under 
                such contract, agreement, or lease, except that such 
                action shall not release the United States from 
                obligations arising under such contract, agreement, or 
                lease prior to such time.''.
            (3) Pricing.--Section 1402 (42 U.S.C. 2297c-1) is amended 
        to read as follows:

``SEC. 1402. PRICING.

    ``The Corporation shall establish prices for its products, 
materials, and services provided to customers on a basis that will 
allow it to attain the normal business objectives of a profitmaking 
corporation.''.
            (4) Leasing of gaseous diffusion facilities of 
        department.--Effective on the privatization date (as defined in 
        section 1201(13) of the Atomic Energy Act of 1954), section 
        1403 (42 U.S.C. 2297c-2) is amended by adding at the end the 
        following:
    ``(h) Low-Level Radioactive Waste and Mixed Waste.--
            ``(1) Responsibility of the department; costs.--
                    ``(A) With respect to low-level radioactive waste 
                and mixed waste generated by the Corporation as a 
                result of the operation of the facilities and related 
                property leased by the Corporation pursuant to 
                subsection (a) or as a result of treatment of such 
                wastes at a location other than the facilities and 
                related property leased by the Corporation pursuant to 
                subsection (a) the Department, at the request of the 
                Corporation, shall--
                            ``(i) accept for treatment or disposal of 
                        all such wastes for which treatment or disposal 
                        technologies and capacities exist, whether 
                        within the Department or elsewhere; and
                            ``(ii) accept for storage (or ultimately 
                        treatment or disposal) all such wastes for 
                        which treatment and disposal technologies or 
                        capacities do not exist, pending development of 
                        such technologies or availability of such 
                        capacities for such wastes.
                    ``(B) All low-level wastes and mixed wastes that 
                the Department accepts for treatment, storage, or 
                disposal pursuant to subparagraph (A) shall, for the 
                purpose of any permits, licenses, authorizations, 
                agreements, or orders involving the Department and 
                other Federal agencies or State or local governments, 
                be deemed to be generated by the Department and the 
                Department shall handle such wastes in accordance with 
                any such permits, licenses, authorizations, agreements, 
                or orders. The Department shall obtain any additional 
                permits, licenses, or authorizations necessary to 
                handle such wastes, shall amend any such agreements or 
                orders as necessary to handle such wastes, and shall 
                handle such wastes in accordance therewith.
                    ``(C) The Corporation shall reimburse the 
                Department for the treatment, storage, or disposal of 
                low-level radioactive waste or mixed waste pursuant to 
                subparagraph (A) in an amount equal to the Department's 
                costs but in no event greater than an amount equal to 
                that which would be charged by commercial, State, 
                regional, or interstate compact entities for treatment, 
                storage, or disposal of such waste.
            ``(2) Agreements with other persons.--The Corporation may 
        also enter into agreements for the treatment, storage, or 
        disposal of low-level radioactive waste and mixed waste 
        generated by the Corporation as a result of the operation of 
        the facilities and related property leased by the Corporation 
        pursuant to subsection (a) with any person other than the 
        Department that is authorized by applicable laws and 
        regulations to treat, store, or dispose of such wastes.''.
            (5) Liabilities.--
                    (A) Subsection (a) of section 1406 (42 U.S.C. 
                2297c-5(a)) is amended--
                            (i) by inserting ``and Privatization'' 
                        after ``Transition'' in the heading; and
                            (ii) by adding at the end the following: 
                        ``As of the privatization date, all liabilities 
                        attributable to the operation of the 
                        Corporation from the transition date to the 
                        privatization date shall be direct liabilities 
                        of the United States.''.
                    (B) Subsection (b) of section 1406 (42 U.S.C. 
                2297c-5(b)) is amended--
                            (i) by inserting ``and Privatization'' 
                        after ``Transition'' in the heading; and
                            (ii) by adding at the end the following: 
                        ``As of the privatization date, any judgment 
                        entered against the Corporation imposing 
                        liability arising out of the operation of the 
                        Corporation from the transition date to the 
                        privatization date shall be considered a 
                        judgment against the United States.''.
                    (C) Subsection (d) of section 1406 (42 U.S.C. 
                2297c-5(d)) is amended--
                            (i) by inserting ``and Privatization'' 
                        after ``Transition'' in the heading; and
                            (ii) by striking ``the transition date'' 
                        and inserting ``the privatization date (or, in 
                        the event the privatization date does not 
                        occur, the transition date)''.
            (6) Transfer of uranium.--Title II (42 U.S.C. 2297 et seq.) 
        is amended by redesignating section 1408 as section 1409 and by 
        inserting after section 1407 the following:

``SEC. 1408. TRANSFER OF URANIUM.

    ``The Secretary may, before the privatization date, transfer to the 
Corporation without charge raw uranium, low-enriched uranium, and 
highly enriched uranium.''.
    (f) Privatization of the Corporation.--
            (1) Establishment of private corporation.--Chapter 25 (42 
        U.S.C. 2297d et seq.) is amended by adding at the end the 
        following new section:

``SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.

    ``(a) Establishment.--
            ``(1) In general.--In order to facilitate privatization, 
        the Corporation may provide for the establishment of a private 
        corporation organized under the laws of any of the several 
        States. Such corporation shall have among its purposes the 
        following:
                    ``(A) To help maintain a reliable and economical 
                domestic source of uranium enrichment services.
                    ``(B) To undertake any and all activities as 
                provided in its corporate charter.
            ``(2) Authorities.--The corporation established pursuant to 
        paragraph (1) shall be authorized to--
                    ``(A) enrich uranium, provide for uranium to be 
                enriched by others, or acquire enriched uranium 
                (including low-enriched uranium derived from highly 
                enriched uranium);
                    ``(B) conduct, or provide for conducting, those 
                research and development activities related to uranium 
                enrichment and related processes and activities the 
                corporation considers necessary or advisable to 
                maintain itself as a commercial enterprise operating on 
                a profitable and efficient basis;
                    ``(C) enter into transactions regarding uranium, 
                enriched uranium, or depleted uranium with--
                            ``(i) persons licensed under section 53, 
                        63, 103, or 104 in accordance with the licenses 
                        held by those persons;
                            ``(ii) persons in accordance with, and 
                        within the period of, an agreement for 
                        cooperation arranged under section 123; or
                            ``(iii) persons otherwise authorized by law 
                        to enter into such transactions;
                    ``(D) enter into contracts with persons licensed 
                under section 53, 63, 103, or 104, for as long as the 
                corporation considers necessary or desirable, to 
                provide uranium or uranium enrichment and related 
                services;
                    ``(E) enter into contracts to provide uranium or 
                uranium enrichment and related services in accordance 
                with, and within the period of, an agreement for 
                cooperation arranged under section 123 or as otherwise 
                authorized by law; and
                    ``(F) take any and all such other actions as are 
                permitted by the law of the jurisdiction of 
                incorporation of the corporation.
            ``(3) Transfer of assets.--For purposes of implementing the 
        privatization, the Corporation may transfer some or all of its 
        assets and obligations to the corporation established pursuant 
        to this section, including--
                    ``(A) all of the Corporation's assets, including 
                all contracts, agreements, and leases, including all 
                uranium enrichment contracts and power purchase 
                contracts;
                    ``(B) all funds in accounts of the Corporation held 
                by the Treasury or on deposit with any bank or other 
                financial institution;
                    ``(C) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the power purchase contracts covered by 
                section 1401(b)(2)(B); and
                    ``(D) all of the Corporation's rights, duties, and 
                obligations, accruing subsequent to the privatization 
                date, under the lease agreement between the Department 
                and the Corporation executed by the Department and the 
                Corporation pursuant to section 1403.
            ``(4) Merger or consolidation.--For purposes of 
        implementing the privatization, the Corporation may merge or 
        consolidate with the corporation established pursuant to 
        subsection (a)(1) if such action is contemplated by the plan 
        for privatization approved by the President under section 
        1502(b). The Board shall have exclusive authority to approve 
        such merger or consolidation and to take all further actions 
        necessary to consummate such merger or consolidation, and no 
        action by or in respect of shareholders shall be required. The 
        merger or consolidation shall be effected in accordance with, 
        and have the effects of a merger or consolidation under, the 
        laws of the jurisdiction of incorporation of the surviving 
        corporation, and all rights and benefits provided under this 
        title to the Corporation shall apply to the surviving 
        corporation as if it were the Corporation.
            ``(5) Tax treatment of privatization.--
                    ``(A) Transfer of assets or merger.--No income, 
                gain, or loss shall be recognized by any person by 
                reason of the transfer of the Corporation's assets to, 
                or the Corporation's merger with, the corporation 
                established pursuant to subsection (a)(1) in connection 
                with the privatization.
                    ``(B) Cancellation of debt and common stock.--No 
                income, gain, or loss shall be recognized by any person 
                by reason of any cancellation of any obligation or 
                common stock of the Corporation in connection with the 
                privatization.
    ``(b) OSHA Requirements.--For purposes of the regulation of 
radiological and nonradiological hazards under the Occupational Safety 
and Health Act of 1970, the corporation established pursuant to 
subsection (a)(1) shall be treated in the same manner as other 
employers licensed by the Nuclear Regulatory Commission. Any 
interagency agreement entered into between the Nuclear Regulatory 
Commission and the Occupational Safety and Health Administration 
governing the scope of their respective regulatory authorities shall 
apply to the corporation as if the corporation were a Nuclear 
Regulatory Commission licensee.
    ``(c) Legal Status of Private Corporation.--
            ``(1) Not federal agency.--The corporation established 
        pursuant to subsection (a)(1) shall not be an agency, 
        instrumentality, or establishment of the United States 
        Government and shall not be a Government corporation or 
        Government-controlled corporation.
            ``(2) No recourse against united states.--Obligations of 
        the corporation established pursuant to subsection (a)(1) shall 
        not be obligations of, or guaranteed as to principal or 
        interest by, the Corporation or the United States, and the 
        obligations shall so plainly state.
            ``(3) No claims court jurisdiction.--No action under 
        section 1491 of title 28, United States Code, shall be 
        allowable against the United States based on the actions of the 
        corporation established pursuant to subsection (a)(1).
    ``(d) Board of Director's Election After Public Offering.--In the 
event that the privatization is implemented by means of a public 
offering, an election of the members of the board of directors of the 
Corporation by the shareholders shall be conducted before the end of 
the 1-year period beginning the date shares are first offered to the 
public pursuant to such public offering.
    ``(e) Adequate Proceeds.--The Secretary of Energy shall not allow 
the privatization of the Corporation unless before the sale date the 
Secretary determines that the estimated sum of the gross proceeds from 
the sale of the Corporation will be an adequate amount.''.
            (2) Ownership limitations.--Chapter 25 (as amended by 
        paragraph (1)) is amended by adding at the end the following 
        new section:

``SEC. 1504. OWNERSHIP LIMITATIONS.

    ``(a) Securities Limitation.--In the event that the privatization 
is implemented by means of a public offering, during a period of 3 
years beginning on the privatization date, no person, directly or 
indirectly, may acquire or hold securities representing more than 10 
percent of the total votes of all outstanding voting securities of the 
Corporation.
    ``(b) Application.--Subsection (a) shall not apply--
            ``(1) to any employee stock ownership plan of the 
        Corporation,
            ``(2) to underwriting syndicates holding shares for resale, 
        or
            ``(3) in the case of shares beneficially held for others, 
        to commercial banks, broker-dealers, clearing corporations, or 
        other nominees.
    ``(c) No director, officer, or employee of the Corporation may 
acquire any securities, or any right to acquire securities, of the 
Corporation--
            ``(1) in the public offering of securities of the 
        Corporation in the implementation of the privatization,
            ``(2) pursuant to any agreement, arrangement, or 
        understanding entered into before the privatization date, or
            ``(3) before the election of directors of the Corporation 
        under section 1503(d) on any terms more favorable than those 
        offered to the general public.''.
            (3) Exemption from liability.--Chapter 25 (as amended by 
        paragraph (2)) is amended by adding at the end the following 
        new section:

``SEC. 1505. EXEMPTION FROM LIABILITY.

    ``(a) In General.--No director, officer, employee, or agent of the 
Corporation shall be liable, for money damages or otherwise, to any 
party if, with respect to the subject matter of the action, suit, or 
proceeding, such person was fulfilling a duty, in connection with any 
action taken in connection with the privatization, which such person in 
good faith reasonably believed to be required by law or vested in such 
person.
    ``(b) Exception.--The privatization shall be subject to the 
Securities Act of 1933 and the Securities Exchange Act of 1934. The 
exemption set forth in subsection (a) shall not apply to claims arising 
under such Acts or under the Constitution or laws of any State, 
territory, or possession of the United States relating to transactions 
in securities, which claims are in connection with a public offering 
implementing the privatization.''.
            (4) Resolution of certain issues.--Chapter 25 (as amended 
        by paragraph (3)) is amended by adding at the end the following 
        new section:

``SEC. 1506. RESOLUTION OF CERTAIN ISSUES.

    ``(a) Corporation Actions.--Notwithstanding any provision of any 
agreement to which the Corporation is a party, the Corporation shall 
not be considered to be in breach, default, or violation of any such 
agreement because of any provision of this chapter or any action the 
Corporation is required to take under this chapter.
    ``(b) Right To Sue Withdrawn.--The United States hereby withdraws 
any stated or implied consent for the United States, or any agent or 
officer of the United States, to be sued by any person for any legal, 
equitable, or other relief with respect to any claim arising out of, or 
resulting from, acts or omissions under this chapter.''.
            (5) Application of privatization proceeds.--Chapter 25 (as 
        amended by paragraph (4)) is amended by adding at the end the 
        following new section:

``SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.

    ``The proceeds from the privatization shall be included in the 
budget baseline required by the Balanced Budget and Emergency Deficit 
Control Act of 1985 and shall be counted as an offset to direct 
spending for purposes of section 252 of such Act, notwithstanding 
section 257(e) of such Act.''.
            (6) Conforming amendment.--The table of contents for 
        chapter 25 is amended by inserting 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.''.
            (7) Section 193 (42 U.S.C. 2243) is amended by adding at 
        the end the following:
    ``(f) Limitation.--If the privatization of the United States 
Enrichment Corporation results in the Corporation being--
            ``(1) owned, controlled, or dominated by a foreign 
        corporation or a foreign government, or
            ``(2) otherwise inimical to the common defense or security 
        of the United States,
any license held by the Corporation under sections 53 and 63 shall be 
terminated.''.
            (8) Period for congressional review.--Section 1502(d) (42 
        U.S.C. 2297d-1(d)) is amended by striking ``less than 60 days 
        after notification of the Congress'' and inserting ``less than 
        60 days after the date of the report to Congress by the 
        Comptroller General under subsection (c)''.
    (g) Periodic Certification of Compliance.--Section 1701(c)(2) (42 
U.S.C. 2297f(c)(2)) is amended by striking ``Annual application for 
certificate of compliance.--The Corporation shall apply at least 
annually to the Nuclear Regulatory Commission for a certificate of 
compliance under paragraph (1).'' and inserting ``Periodic application 
for certificate of compliance.--The Corporation shall apply to the 
Nuclear Regulatory Commission for a certificate of compliance under 
paragraph (1) periodically, as determined by the Nuclear Regulatory 
Commission, but not less than every 5 years.''.
    (h) Licensing of Other Technologies.--Subsection (a) of section 
1702 (42 U.S.C. 2297f-1(a)) is amended by striking ``other than'' and 
inserting ``including''.
    (i) Conforming Amendments.--
            (1) Repeals in atomic energy act of 1954 as of the 
        privatization date.--
                    (A) Repeals.--As of the privatization date (as 
                defined in section 1201(13) of the Atomic Energy Act of 
                1954), the following sections (as in effect on such 
                privatization date) of the Atomic Energy Act of 1954 
                are repealed:
                            (i) Section 1202.
                            (ii) Sections 1301 through 1304.
                            (iii) Sections 1306 through 1316.
                            (iv) Sections 1404 and 1405.
                            (v) Section 1601.
                            (vi) Sections 1603 through 1607.
                    (B) Conforming amendment.--The table of contents of 
                such Act is amended by repealing the items referring to 
                sections repealed by paragraph (1).
            (2) Statutory modifications.--As of such privatization 
        date, the following shall take effect:
                    (A) For purposes of title I of the Atomic Energy 
                Act of 1954, all references in such Act to the ``United 
                States Enrichment Corporation'' shall be deemed to be 
                references to the corporation established pursuant to 
                section 1503 of the Atomic Energy Act of 1954 (as added 
                by subsection (f)(1)).
                    (B) Section 1018(1) of the Energy Policy Act of 
                1992 (42 U.S.C. 2296b-7(1)) is amended by striking 
                ``the United States'' and all that follows through the 
                period and inserting ``the corporation referred to in 
                section 1201(4) of the Atomic Energy Act of 1954.''.
                    (C) Section 9101(3) of title 31, United States 
                Code, is amended by striking subparagraph (N), as added 
                by section 902(b) of Public Law 102-486.
            (3) Revision of section 1305.--As of such privatization 
        date, section 1305 of the Atomic Energy Act of 1954 (42 U.S.C 
        2297b-4) is amended--
                    (A) by repealing subsections (a), (b), (c), and 
                (d), and
                    (B) in subsection (e)--
                            (i) by striking the subsection designation 
                        and heading,
                            (ii) by redesignating paragraphs (1) and 
                        (2) (as added by subsection (d)(1)) as 
                        subsections (a) and (b) and by moving the 
                        margins 2-ems to the left,
                            (iii) by striking paragraph (3), and
                            (iv) by redesignating paragraph (4) (as 
                        amended by subsection (d)(2)) as subsection 
                        (c), and by moving the margins 2-ems to the 
                        left.
SEC. 4202. RESEARCH AND DEVELOPMENT.

    (a) Fossil Fuel Research and Development.--There are authorized to 
be appropriated to the Secretary of Energy for fossil fuel research and 
development--
            (1) $420,483,300 for fiscal year 1996;
            (2) $398,352,600 for fiscal year 1997;
            (3) $376,221,900 for fiscal year 1998;
            (4) $354,091,200 for fiscal year 1999; and
            (5) $331,960,500 for fiscal year 2000.
    (b) Energy Conservation Research and Development.--There are 
authorized to be appropriated to the Secretary of Energy for energy 
conservation research and development--
            (1) $713,874,600 for fiscal year 1996;
            (2) $634,555,200 for fiscal year 1997;
            (3) $555,235,800 for fiscal year 1998;
            (4) $475,916.400 for fiscal year 1999; and
            (5) $396,597,000 for fiscal year 2000.
    (c) Magnetic Fusion Research and Development.--There are authorized 
to be appropriated to the Secretary of Energy for magnetic fusion 
research and development--
            (1) $335,306,700 for fiscal year 1996;
            (2) $298,050,400 for fiscal year 1997;
            (3) $260,794,100 for fiscal year 1998;
            (4) $000,000,000 for fiscal year 1999; and
            (5) $186,281,500 for fiscal year 2000.
    (d) Solar and Renewable Energy Research and Development.--There are 
authorized to be appropriated to the Secretary of Energy for solar and 
renewable energy research and development--
            (1) $349,297,200 for fiscal year 1996;
            (2) $310,486,400 for fiscal year 1997;
            (3) $271,675,600 for fiscal year 1998;
            (4) $232,864,800 for fiscal year 1999; and
            (5) $194,054,000 for fiscal year 2000.
    (e) Nuclear Energy Research and Development.--There are authorized 
to be appropriated to the Secretary of Energy for nuclear energy 
research and development--
            (1) $293,228,000 for fiscal year 1996;
            (2) $293,228,000 for fiscal year 1997;
            (3) $293,228,000 for fiscal year 1998;
            (4) $293,228,000 for fiscal year 1999; and
            (5) $293,228,000 for fiscal year 2000.
SEC. 4203. TERMINATION OF CLEAN COAL TECHNOLOGY PROGRAM.

    (a) In General.--The United States shall not obligate any funds for 
the Clean Coal Technology program.
    (b) Repeal.--
            (1) In general.--Except as provided in paragraph (2), the 
        matter under the heading ``DEPARTMENT OF ENERGY, clean coal 
        technology'' in the Act entitled ``An Act making appropriations 
        for the Department of the Interior and Related Agencies for the 
        fiscal year ending September 30, 1986, and for other purposes'' 
        enacted by section 101(d) of the Joint Resolution entitled 
        ``Joint Resolution making further continuing appropriations for 
        the fiscal year 1986, and for other purposes'' (Public Law 99-
        190; 99 Stat. 1251) is repealed.
            (2) Exception.--The authority provided in the matter 
        repealed by paragraph (1) of this subsection
         shall be preserved to the extent necessary to carry out 
obligations of the United States with respect to clean coal technology 
projects selected by the Secretary of Energy pursuant to the fifth 
general request for proposals issued by the Secretary under such 
section 101(d) (and pursuant to any such general request issued before 
the fifth general request).
SEC. 4204. TERMINATION OF ATOMIC VAPOR ISOTOPE SEPARATION PROGRAM.

    No amount of funds provided for any fiscal year may be obligated by 
the Secretary of Energy after the date of the enactment of this Act for 
the atomic vapor laser isotope separation program.

            Subtitle D--Reform Energy Conservation Programs

SEC. 4301. WEATHERIZATION.

    (a) Repeal.--Part A of title IV of the Energy Conservation and 
Production Act (42 U.S.C. 6861-6872), and the items relating thereto in 
the table of contents of such Act, are repealed.
    (b) Conforming Amendments.--(1) Section 2605(b)(4) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8624(b)(4)) is 
amended by striking ``under the low-income weatherization assistance 
program under title IV of the Energy Conservation and Production 
Act,''.
    (2) Section 504(c) of the Housing Act of 1949 (42 U.S.C. 1474(c)) 
is amended--
            (A) in paragraph (3), by inserting ``(as such provision was 
        in effect on January 1, 1995)'' after ``Buildings Act of 
        1976''; and
            (B) in paragraph (4), by inserting ``(as such provisions 
        were in effect on January 1, 1995)'' after ``Buildings Act of 
        1976''.
    (3) Section 2(a)(2) of the National Housing Act (12 U.S.C. 
1703(a)(2)) is amended by inserting ``(as such provision was in effect 
on January 1, 1995)'' after ``Buildings Act of 1976''.
    (4) Section 203(b) of the Older Americans Act of 1965 (42 U.S.C. 
3013(b)) is amended by striking paragraph (12) and redesignating the 
subsequent paragraphs accordingly.
    (5) Section 233 of the National Energy Conservation Policy Act (42 
U.S.C. 6873) is amended by striking ``weatherization programs conducted 
under part A of the Energy Conservation in Existing Buildings Act of 
1976,''.
    (6) Section 3803(c)(2)(C) of title 31, United States Code, is 
amended--
            (A) by inserting ``and'' at the end of clause (xiv);
            (B) by striking ``; and'' at the end of clause (xv) and 
        inserting in lieu thereof a period; and
            (C) by striking clause (xvi).

SEC. 4302. STATE ENERGY CONSERVATION PROGRAM.

    (a) Repeal.--Part D of title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6321-6326), and the items relating thereto 
in the table of contents of such Act, are repealed.
    (b) Conforming Amendments.--(1) Section 509(i) of the Housing and 
Urban Development Act of 1970 (12 U.S.C. 1701z-8(i)) is amended--
            (A) in paragraph (2), by striking ``pursuant to section 
        365(e)(1) of the Energy Policy and Conservation Act''; and
            (B) in paragraph (3), by inserting ``(as such provision was 
        in effect on January 1, 1995)'' after ``Policy and Conservation 
        Act''.
    (2) Section 912(f) of the Housing and Community Development Act of 
1992 (42 U.S.C. 5511a(f)) is amended by striking ``State agencies 
responsible'' and all that follows through ``any other'' and inserting 
in lieu thereof ``any''.

SEC. 4303. INSTITUTIONAL CONSERVATION.

    (a) Repeal.--Parts G and H of the Energy Policy and Conservation 
Act (42 U.S.C. 6371-6372i), and the items relating thereto in the table 
of contents of such Act, are repealed.
    (b) Conforming Amendment.--Title III of the National Energy 
Conservation Policy Act, and the items relating thereto in the table of 
contents of such Act, are repealed.
                          TITLE V--ENVIRONMENT

            Subtitle A--Public Land Use and Purchase Reforms

SEC. 5001. MORATORIUM ON LAND ACQUISITION BY CERTAIN AGENCIES.

    (a) In General.--
            (1) Purchase with appropriated funds.--During the 5-year 
        period beginning on October 1, 1996--
                    (A) the Secretary of the Interior may not obligate 
                or expend any appropriated funds to acquire lands or 
                interests in lands which are to be administered by the 
                National Park Service or by the United States Fish and 
                Wildlife Service;
                    (B) the Secretary of Agriculture may not obligate 
                or expend any appropriated funds to acquire lands or 
                interests in lands which are to be administered by the 
                Forest Service; and
                    (C) no other Federal agency may obligate or expend 
                appropriated funds to acquire lands or interests in 
                lands for the purpose of transferring the lands or 
                interests to the administrative jurisdiction of the 
                National Park Service, the United States Fish and 
                Wildlife Service, or the Forest Service.
            (2) Exchange.--During the 5-year period referred to in 
        paragraph (1), the Secretary of the Interior may not exchange 
        lands or interests in lands administered by or to be 
        administered by the National Park Service or the United States 
        Fish and Wildlife Service, and the Secretary of Agriculture may 
        not exchange lands or interests in lands administered by or to 
        be administered by the Forest Service, if the exchange would 
        result in budget outlays (as defined in section 3 of the 
        Congressional Budget and Impoundment Control Act of 1974 (2 
        U.S.C. 622)) by the National Park Service, United States Fish 
        and Wildlife Service, or Forest Service, as the case may be.
    (b) Exception.--Subsection (a) shall not apply with respect to the 
acquisition (by exchange or otherwise) of any lands or interests in 
lands if the President submits written certification to the Congress 
that the lands or interests, as the case may be, are vital to national 
security interests of the United States.
    (c) Application to Previous Agreements.--Subsection (a) shall not 
apply with respect to any otherwise binding agreement that is entered 
into before the date of the enactment of this Act and that obligates 
the United States to acquire lands or interests in lands by purchase or 
exchange in whole or in part with appropriated funds.
SEC. 5002. PROHIBITION ON TIMBER SALES IN UNITS OF THE NATIONAL FOREST 
              SYSTEM IN WHICH TIMBER SALE EXPENSES CONSISTENTLY EXCEED 
              TIMBER SALE REVENUES.

    (a) In General.--The National Forest Management Act of 1976 is 
amended by inserting after section 14 (16 U.S.C. 472a) the following 
new section:

``SEC. 14A. PROHIBITION ON BELOW-COST TIMBER SALE PROGRAMS.

    ``(a) Annual Determination of Revenues and Costs of Timber Sale 
Programs.--As soon as possible after the end of each fiscal year, the 
Secretary of Agriculture shall determine for each unit of the National 
Forest System the total revenues derived or to be derived by the 
Federal Government, and the total costs incurred or to be incurred by 
the Federal Government, as a direct result of the timber sale program 
conducted in that unit during that fiscal year. For purposes of 
determining revenues and costs under this subsection, the Secretary 
shall continue to use the definitions of revenues and costs, and the 
accounting practices used to measure such revenues and costs, in effect 
for the Forest Service as of December 31, 1994.
    ``(b) Termination of Consistently Below-Cost Timber Sale 
Programs.--If, for three consecutive fiscal years in which timber sales 
are conducted in a unit of the National Forest System, the Secretary 
determines pursuant to subsection (a) that the total costs for the 
timber sale program of that unit exceed the total revenues for the 
program, the Secretary shall immediately terminate the timber sale 
program for that unit and may not enter into any contract for the sale 
of national forest materials from that unit. Notwithstanding the 
termination of the timber sale program for a unit of the National 
Forest System under this subsection, the Secretary may permit the 
continued performance of a contract related to a specific sale of 
national forest materials from that unit if the contract was executed 
before the date of the termination.
    ``(c) Reinstatement of Timber Sale Program.--The Secretary may 
reinstate a timber sale program terminated under subsection (b) if the 
Secretary--
            ``(1) develops a timber sale program for the unit of the 
        National Forest System involved that, in the judgment of the 
        Secretary, will produce revenues that exceed costs for such 
        program; and
            ``(2) notifies Congress of the reinstatement of the timber 
        sale program not later than 60 days before the date on which 
        the program is to be reinstated.
    ``(d) Effect of Subsequent Determination of Below-Cost Sales.--If, 
for any of the three fiscal years immediately following the 
reinstatement under subsection (c) of a timber sale program for a unit 
of the National Forest System, the Secretary determines pursuant to 
subsection (a) that the total costs for the program exceed the total 
revenues for the program, the Secretary shall immediately terminate the 
timber sale program of that unit of the National Forest System. A 
timber sale program of a unit of the National Forest System terminated 
under this subsection may not be reinstated, and the Secretary shall 
prohibit all further sales of national forest materials from that unit. 
If a timber sale program successfully completes this three-fiscal year 
period without being terminated, the Secretary shall apply the 
termination policy specified in subsection (b) in evaluating the 
operation of the timber sale program in subsequent fiscal years.''.
    (b) Effective Date.--Section 14A of the National Forest Management 
Act of 1976, as added by subsection (a), shall take effect on the date 
of the enactment of this Act, except that the suspension of the timber 
sale program
 of a unit of the National Forest System under subsection (b) of such 
section may not begin before October 1, 1995. As soon as possible after 
the date of the enactment of this Act, the Secretary of Agriculture 
shall make the determination required by subsection (a) of such section 
with respect to fiscal years 1992, 1993, and 1994.

SEC. 5003. PERMANENT LIMITATIONS ON AMOUNTS AUTHORIZED TO BE 
              APPROPRIATED FOR THE NATIONAL FOREST SYSTEM AND RELATED 
              AGRICULTURE CONSERVATION AND FORESTRY PROGRAMS.

    (a) National Forest System.--Section 11 of the Forest and Rangeland 
Renewable Resources Planning Act of 1974 (16 U.S.C. 1609) is amended by 
adding at the end the following new subsection:
    ``(c) Limitation on National Forest System Funding.--
Notwithstanding any other authorization of appropriations to the 
contrary, the total amount authorized to be appropriated for a fiscal 
year for necessary expenses of the Forest Service for management, 
protection, improvement, and utilization of the National Forest System 
and for all other purposes specified under the heading `national forest 
system' in title II of the Department of the Interior and Related 
Agencies Appropriations Act, 1995 (Public Law 103-332; 108 Stat. 2520), 
shall not exceed $1,304,891,000.''.
    (b) State and Private Forestry.--The Forest Stewardship Act of 1990 
(title XII of Public Law 101-624; 104 Stat. 3521) is amended by adding 
after section 1201 the following new section:

``SEC. 1202. LIMITATION ON FUNDING FOR STATE AND PRIVATE FORESTRY.

    ``Notwithstanding any other authorization of appropriations to the 
contrary, the total amount authorized to be appropriated for a fiscal 
year for necessary expenses of State and private forestry activities to 
cooperate with, and provide technical and financial assistance to, 
States, Territories, possessions, and others and for forest pest 
management activities, cooperative forestry and education and land 
conservation activities shall not exceed $161,264,000.''.
    (c) Resource Conservation and Development Funding.--
            (1) Funding limitation.--Section 6 of the Soil Conservation 
        and Domestic Allotment Act (16 U.S.C. 590f) is amended by 
        striking the section heading and the first undesignated 
        paragraph and inserting the following:

``SEC. 6. LIMITATION ON RESOURCE CONSERVATION AND DEVELOPMENT FUNDING.

    ``Notwithstanding any other authorization of appropriations to the 
contrary, the total amount authorized to be appropriated for a fiscal 
year for necessary expenses in planning and carrying out projects for 
resource conservation and development and for sound land use pursuant 
to the first section and sections 2 and 3 of this Act (16 U.S.C. 590a-
590c), section 32(e) of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 
1011(e), and subtitle H of title XV of the Agriculture and Food Act of 
1981 (16 U.S.C. 3451-3461) shall not exceed $28,900,000, except that 
not more than $15,000,000 may be appropriated for loans in any fiscal 
year under such subtitle. Such amounts shall remain available until 
expended.''.
            (2) Conforming amendments.--(A) Section 34 of the Bankhead-
        Jones Farm Tenant Act (7 U.S.C. 1013) is amended by adding at 
        the end the following new sentence: ``For the authorization of 
        appropriations to carry out section 32(e), see section 6 of the 
        Soil Conservation and Domestic Allotment Act (16 U.S.C. 
        590f).''.
            (B) Section 1538 of the Agriculture and Food Act of 1981 
        (16 U.S.C. 3461) is amended to read as follows:

``SEC. 1538. AUTHORIZATION OF APPROPRIATIONS.

    ``For the authorization of appropriations to carry out this 
subtitle, see section 6 of the Soil Conservation and Domestic Allotment 
Act (16 U.S.C. 590f).''.
    (d) Agricultural Conservation Program.--
            (1) Funding limitation.--Section 15 of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 590o) is 
        amended by striking the first sentence and inserting the 
        following:
    ``(a) Limitation on Agricultural Conservation Program Funding.--
Notwithstanding any other authorization of appropriations to the 
contrary, the total amount authorized to be appropriated for a fiscal 
year for necessary expenses to carry into effect the agricultural 
conservation program authorized in sections 7 through 14, section 16 
(other than subsection (b)), and section 17 of this Act (16 U.S.C. 
590g-590n, 590p, and 590q) and title X of the Agricultural Act of 1970, 
other than section 1005 (16 U.S.C. 1501-1504, 1506-1510), shall not 
exceed $100,000,000.''.
            (2) Conforming amendments.--(A) Such section is further 
        amended by inserting ``(b) Distribution of Funds.--'' before 
        ``Notwithstanding the foregoing''.
            (B) Section 1010 of the Agricultural Act of 1970 (16 U.S.C. 
        1510) is amended to read as follows:

``SEC. 1010. AUTHORIZATION OF APPROPRIATIONS.

    ``For the authorization of appropriations to carry out this title, 
other than section 1005, see section 15(a) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590o(a)).''.
    (e) Great Plains Conservation Program.--Section 16(b)(7) of the 
Soil Conservation and Domestic Allotment Act (16 U.S.C. 590p(b)(7)) is 
amended by striking ``such sums as may be necessary'' and inserting 
``$11,000,000 each fiscal year''.
    (f) Forestry Incentives Program.--Section 4(j) of the Cooperative 
Forestry Assistance Act of 1978 (16 U.S.C. 2103(j)) is amended by 
striking ``such sums as may be needed to implement this section, 
including funds necessary for'' and inserting ``$6,625,000 to implement 
this section and cover the costs of''.

SEC. 5004. HETCH HETCHY.

    In accordance with the discretionary authority provided in section 
7 of the Act of December 19, 1913 (38 Stat. 242, 245) commonly known as 
the ``Raker Act'', the annual amounts to be paid to the United States 
under that section shall be increased to the amount determined
 by the Secretary of the Interior to be equal to the fair market value 
of the electric power generated within the area described in such Act.

SEC. 5005. MINERAL LEASING OF LANDS WITHIN ARCTIC NATIONAL WILDLIFE 
              REFUGE.

    (a) Repeal of Leasing Prohibition.--(1) The heading for section 
1003 of the Alaska National Interest Conservation Act (16 U.S.C. 3143) 
is amended to read as follows:

``SEC. 1003. MINERAL LEASING OF LANDS WITHIN ARCTIC NATIONAL WILDLIFE 
              REFUGE.''.

    (2) Such section 1003 is further amended by adding the following at 
the end thereof: ``The preceding sentence shall not apply to such area 
or areas within the refuge, the aggregate acreage of which does not 
exceed one and one-half million acres, as the Secretary of the Interior 
may designate. Notwithstanding any other provision of law, all lands 
owned by the United States and located within such designated area or 
areas shall be available for mineral leasing under the Mineral Leasing 
Act.''.
    (b) Deposit of Leasing Revenues in Treasury.--Section 35 of the 
Mineral Leasing Act is amended by adding the following at the end 
thereof: ``The preceding provisions of this section shall not apply to 
lands within the Arctic National Wildlife Refuge, and 100 percent of 
all monies received from sales, bonuses, royalties from any mineral 
leasing activities carried out with respect to such lands shall be 
deposited in the Treasury as miscellaneous receipts.''.

SEC. 5006. NATIONAL PARK SERVICE USER FEES AND ENTRANCE FEES.

    (a) Definitions.--As used in this section:
            (1) The term ``park'' means a unit of the National Park 
        System.
            (2) The term ``Secretary'' means the Secretary of the 
        Interior.
    (b) Fees.--
            (1) Admission fees.--
                    (A) In general.--The Secretary shall establish 
                reasonable admission fees to be charged at units of the 
                National Park System where the Secretary determines 
                that such fees are appropriate and feasible.
                    (B) Annual passes.--For admission or entrance into 
                any unit of the National Park System designated by the 
                Secretary pursuant to this section, or into several 
                specific units located in a particular geographic area, 
                or for entrance to all units where an admission fee is 
                charged, the Secretary is authorized to make available 
                annual admission permits for reasonable fees to be 
                determined by the Secretary.
                    (C) Single visits.--The Secretary shall establish 
                reasonable admission fees for a single visit at any 
                unit of the National Park System designated by the 
                Secretary pursuant to this section for persons who 
                choose not to purchase an annual pass.
            (2) Recreation use fees.--The Secretary shall establish 
        reasonable fees for specialized outdoor recreation sites, 
        facilities, equipment, or services that are provided or 
        furnished at Federal expense.
            (3) Special park uses.--The Secretary shall establish 
        reasonable fees for uses of park units that require special 
        arrangements including permits. The fees shall cover all costs 
        of providing necessary services associated with special uses 
        and shall be credited to the appropriation current at that 
        time.
            (4) Retention of fees.--(A) Except as provided below, fees 
        collected pursuant to paragraphs (1) and (2) of this subsection 
        shall be deposited in the special fund account established in 
        Section 4 of the Land and Water Conservation Fund Act of 1965 
        (16 U.S.C. 460l-6a(i)(4)).
            (B) Notwithstanding any other provision of law, beginning 
        in fiscal year 1996 and thereafter, an amount equal to 15 
        percent of the total fees collected in the immediate preceding 
        fiscal year pursuant to paragraphs (1) and (2) shall be 
        deducted from the current year collections and shall be 
        deposited into a special fund established in the Treasury of 
        the United States titled ``Fee Collection Support--National 
        Park System'' and shall be available to the Secretary without 
        further appropriation to cover the costs of collection of the 
        fees, to remain available until expended.
            (5) Notwithstanding any other provision of law, beginning 
        in fiscal year 1998 and thereafter, 50 percent of the 
        difference in additional receipts collected during the 
        immediate preceding fiscal year as compared to total receipts 
        collected in fiscal year 1993 shall be deducted from the 
        current year collections and shall be covered into a special 
        fund established in the Treasury of the United States titled 
        ``National Park Renewal Fund'', and shall be available to the 
        Secretary without further appropriation for infrastructure 
        needs at parks, including but not limited to facility 
        refurbishment, repair and replacement, resource protection, 
        interpretive/educational media (exhibits), and other 
        infrastructure projects beneficial to park resources, to remain 
        available until expended.
            (6) In fiscal year 1997 only, fees authorized to be 
        collected pursuant to paragraphs (1) and (2) may be collected 
        only to the extent provided in advance in appropriations acts 
        and shall be credited to the appropriate special fund accounts 
        described in this section. In addition, said fees shall be 
        available for the purposes of this section only to the extent 
        provided in advance in appropriations acts and are authorized 
        to be appropriated to remain available until expended. In 
        fiscal year 1998 and thereafter, fees collected as authorized 
        to be collected pursuant to paragraphs (1) and (2) may be 
        collected as authorized by this section and shall be available 
        as provided in this section without further provision in 
        appropriations Acts.
    (c) Use of Fees.--The Secretary shall develop procedures for the 
use of these receipts that ensure accountability and demonstrated 
results consistent with the purposes of this section. The Secretary 
shall report annually to Congress on the expenditure of funds from fees 
collected, beginning after the first full fiscal year following 
enactment of this section.
    (d) Discounts.--In establishing the fees authorized in this 
section, the Secretary shall establish appropriate discounts for 
educational groups, persons sixty-two years of age older, or persons 
who are blind or permanently disabled. The Secretary may also establish 
criteria when the fees may be waived for these groups or individuals.
    (e) Criteria.--All fees established pursuant to this section shall 
be fair and equitable, taking into consideration the direct and 
indirect cost to the Government, the benefits to the recipient, the 
public policy or interest served, the comparable fees charged by non-
Federal public and private agencies, the economic and administrative 
feasibility of fee collection and other pertinent factors. The 
Secretary shall from time to time review the fees for consistency with 
the provisions of this subsection and provide timely public notice of 
any proposed changes in the fees.
    (f) Donations.--
            (1) Requests for donations.--In addition to other 
        authorities the Secretary may have to accept the donation of 
        lands, buildings, other property, services, and moneys for the 
        purposes of the National Park System, the Secretary is 
        authorized to solicit donations of money, property, and 
        services from individuals, corporations, foundations and other 
        potential donors who the Secretary believes would wish to make 
        such donations as an expression of support for the national 
        parks. Such donations may be accepted and used for any 
        authorized purpose or program of the National Park Service, and 
        donations of money shall remain available for expenditure 
        without fiscal year limitation. Any employees of the Department 
        to whom this authority is delegated shall be set forth in 
        regulations issued by the Secretary pursuant to paragraph (4).
            (2) Employee participation.--Employees of the National Park 
        Service may solicit donations only if the request is incidental 
        to or in support of, and does not interfere with their primary 
        duty of protecting and administering the parks or administering 
        authorized programs, and only for the purpose of providing a 
        level of resource protection, visitor facilities, or services 
        for health and safety projects, recurring maintenance 
        activities, or for other routine activities normally funded 
        through annual agency appropriations. Such requests must be in 
        accordance with guidelines issued pursuant to paragraph (d).
            (3) Prohibitions.--(A) A donation may not be accepted in 
        exchange for a commitment to the donor on the part of the 
        National Park Service or which attaches conditions inconsistent 
        with applicable laws and regulations or that is conditioned 
        upon or will require the expenditure of appropriated funds that 
        are not available to the Department, or which compromises a 
        criminal or civil position of the United States or any of its 
        departments or agencies or the administrative authority of any 
        agency of the United States.
            (B) In utilizing the authorities contained in this section 
        employees of the National Park Service shall not directly 
        conduct or execute major fund raising campaigns, but may 
        cooperate with others whom the Secretary may designate to 
        conduct such campaigns on behalf of the National Park Service.
            (4) Regulations and guidance.--The Secretary shall issue 
        regulations setting forth those positions to which he has 
        delegated his authority under paragraph (1) and the categories 
        of employees of the National Park Service that are authorized 
        to request donations pursuant to paragraph (2). Such 
        regulations shall also set forth any limitations on the types 
        of donations that will be requested or accepted as well as the 
        sources of those donations.
            (5) Guidelines.--The Secretary shall publish guidelines 
        which set forth the criteria to be used in determining whether 
        the solicitation or acceptance of contributions of lands, 
        buildings, other property, services, moneys and other gifts or 
        donations authorized by this section would reflect unfavorably 
        upon the ability of the Department of the Interior or any 
        employee to carry out its responsibilities or official duties 
        in a fair and objective manner, or would compromise the 
        integrity or the appearance of the integrity of its programs or 
        any official involved in those programs. The Secretary shall 
        also issue written guidance on the extent of the cooperation 
        that may be provided by National Park Service employees in any 
        major fund raising campaign which the Secretary has designated 
        others to conduct pursuant to paragraph (3)(B).
    (g) Challenge Cost-Share Agreements.--
            (1) Agreements.--The Secretary is authorized to negotiate 
        and enter into challenge cost-share agreements with 
        cooperators. For purposes of this section, the term--
                    (A) ``challenge cost-share agreement'' means any 
                agreement entered into between the Secretary and any 
                cooperator for the purpose of sharing costs or services 
                in carrying out authorized functions and 
                responsibilities of the Secretary with respect to the 
                National Park System; and
                    (B) ``cooperator'' means any State or local 
                government, public or private agency, organization, 
                institution, corporation, individual, or other entity.
            (2) Use of federal funds.--In carrying out challenge cost-
        share agreements, the Secretary is authorized, subject to 
        appropriation, to provide the Federal funding share from any 
        funds available to the National Park Service.
    (h) Cost Recovery for Damage to Park Resources.--Any funds payable 
to the United States as restitution on account of damage to park 
resources or property shall be paid to the Secretary. Any such funds, 
and any other funds received by the Secretary as a result of 
forfeiture, compromise, or settlement on account of damage to park 
resources or property shall be available without appropriation and may 
be expended by the Secretary without regard to fiscal year limitation 
to improve, protect, or rehabilitate any park resources or property 
which have been damaged by the action of a permittee or any 
unauthorized person.
    (i) Consistency With Other Laws.--
            (1) Except as provided in subsection (2), to the extent 
        that the provisions of this section are inconsistent with 
        section 4 of the Land and Water Conservation Act of 1965 as 
        amended (16 U.S.C. 460l-6a) or any other provision of law, 
        including any provision that prohibits or limits the charging 
        of a reasonable recreation or other fee, the provisions of this 
        section shall prevail.
            (2) The following sections of the Land and Water 
        Conservation Act of 1965 as amended (16 U.S.C. 460l-6a) will 
        apply to this section:
                    (A) Rules and regulations; establishment; 
                enforcement powers; penalty for violations.--In 
                accordance with the provisions of this section, the 
                Secretary may prescribe rules and regulations for areas 
                under his or her administration for the collection of 
                any fee established pursuant to this section. Persons 
                authorized to enforce any such rules or regulations 
                issued under this subsection may, within areas under 
                the administration or authority of the Secretary and 
                with or, if the offense is committed in his presence, 
                without a warrant, arrest any person who violates such 
                rules and regulations. Any person so arrested may be 
                tried and sentenced by the United States magistrate 
                judge specifically designated for that purpose by the 
                court by which he was appointed, in the same manner and 
                subject to the same conditions as provided in 
                subsection (b), (c), (d), and (e) of section 3401 of 
                title 18. Any violations of the rules and regulations 
                issued under this subsection shall be punishable by a 
                fine of not more than $1,000.
                    (B) Criteria, posting and uniformity of fees.--
                Clear notice that a fee has been established pursuant 
                to this section shall be prominently posted at each 
                area and at appropriate locations therein and shall be 
                included in publications distributed at such areas.
                    (C) Contracts with public or private entities for 
                visitor reservation services.--The Secretary, under 
                such terms and conditions as he deems appropriate, may 
                contract with any public or private entity to provide 
                visitor reservation services. Any such contract may 
                provide that the contractor shall be permitted to 
                deduct a commission to be fixed by the agency head from 
                the amount charged the public for providing such 
                services and to remit the net proceeds therefrom to the 
                contracting agency.
                    (D) Federal and state laws unaffected.--Nothing in 
                this section shall authorize Federal hunting or fishing 
                licenses or fees or charges for commercial or other 
                activities not related to recreation, nor shall it 
                affect any rights or authority of the States with 
                respect to fish and wildlife, nor shall it repeal or 
                modify any provision of law that permits States or 
                political subdivisions to share in the revenues from 
                Federal lands or any provision of law that provides 
                that any fees or charges collected at particular 
                Federal areas shall be used for or credited to specific 
                purposes or special funds as authorized by that 
                provision of law.
                    (E) Selling of permits and collection of fees by 
                volunteers at designated areas; collecting agency 
                duties; surety bonds; selling of annual admission 
                permits by public and private entities under 
                arrangements with collecting agency head.--When 
                authorized by the Secretary, volunteers at designated 
                areas may sell permits and collect fees authorized or 
                established pursuant to this section. The Secretary 
                shall ensure that such volunteers have adequate 
                training regarding--
                            (i) the sale of permits and the collection 
                        of fees,
                            (ii) the purposes and resources of the 
                        areas in which they are assigned, and
                            (iii) the provision of assistance and 
                        information to visitors to the designated area.
                The Secretary shall require a surety bond for any such 
                volunteer performing services under this subsection. 
                Funds available to the collecting agency may be used to 
                cover the cost of any such surety bond. The head of the 
                collecting agency may enter into arrangements with 
                qualified public or private entities pursuant to which 
                such entities may well (without cost to the United 
                States) annual admission permits (including Golden 
                Eagle Passports) at any appropriate location.
 Subtitle B--Environmental Conservation, Cleanup, and Research Reforms
SEC. 5101. PREFERENCE FOR INTERIM MEASURES IN SUPERFUND RESPONSE 
              ACTIONS.

    (a) Amendment of CERCLA.--Section 121(a) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9621(a)) is amended by adding at the end the following: 
``Notwithstanding any other provision of this Act, in selecting 
appropriate remedial actions in any record of decision issued on or 
after October 1, 1995, the President shall give a preference to the use 
of institutional controls (such as deed and access restrictions, 
monitoring, and provision of alternate water supplies), containment 
methods (including caps, slurry walls, and surface water diversion), 
and other interim measures, rather than permanent treatment 
technologies, if such measures are sufficient to assure the protection 
of human health and the environment.''.
    (b) Cleanup Standards.--Section 121(d)(2) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9621(d)(2)) shall not apply to any remedial action described in 
the amendment made by subsection (a).
    (c) Authorization of Appropriations.--(1) Section 517(b) of the 
Superfund Amendments and Reauthorization Act of 1986 is amended--
            (A) by striking the period at the end of paragraph (9) and 
        inserting in lieu thereof a comma; and
            (B) by adding after paragraph (9) the following new 
        paragraphs:
            ``(10) 1996, $1,065,536,000,
            ``(11) 1997, $1,100,198,000,
            ``(12) 1998, $1,254,824,000, and
            ``(13) 1999, $1,321,018,000,''.
    (2) Section 9507(c) of the Internal Revenue Code of 1986 is amended 
by adding the following new paragraph at the end thereof:
            ``(3) Limitation on Appropriations from Fund.--For fiscal 
        years 1996, 1997, 1998, and 1999, the total of all amounts 
        authorized to be appropriated from the Superfund shall not 
        exceed the amounts specified in paragraphs (10) through (13) of 
        the Superfund Amendments and Reauthorization Act of 1986.''.
    (d) Report Requirement.--(1) The President shall submit to Congress 
a report, during each of the 5 years listed in paragraph (2), on the 
use of measures under the last sentence of section 121(a) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980 (42 U.S.C. 9621), as required by the amendment made by 
subsection (a). The report shall cover the preceding fiscal year and 
shall include the estimated savings resulting from the use of such 
measures in comparison to using permanent treatment technologies.
    (2) The President shall submit the report required by paragraph (1) 
by December 1 of 1996, 1997, 1998, 1999, and 2000.
SEC. 5102. ELIMINATION OF THE CONSERVATION RESERVE PROGRAM.

    (a) In General.--Subchapter B of chapter 1 of subtitle D of title 
XII of the Food Security Act of 1985 (16 U.S.C. 3831-3836) is hereby 
repealed.
    (b) Conforming Amendments.--
            (1) Section 1201(a) of such Act (16 U.S.C. 3801(a)) is 
        amended by striking paragraph (3).
            (2) Sections 1211(3) and 1221(a)(3) of such Act (16 U.S.C. 
        3811(3) and 3821(a)(3)) are each amended by striking 
        subparagraph (C) and by redesignating subparagraphs (D), (E), 
        and (F) as subparagraphs (C), (D), and (E), respectively.
            (3) Section 1230 of such Act (16 U.S.C. 3830) is amended--
                    (A) in subsection (a), by striking ``highly'' and 
                all that follows through ``contamination), and'';
                    (B) in subsection (b), by striking ``subchapters B 
                and C'' and inserting ``subchapter C''; and
                    (C) in subsection (c)--
                            (i) by striking ``the conservation reserve 
                        program and''; and
                            (ii) by striking ``subchapters B and C, 
                        respectively'' and inserting ``subchapter C''.
            (4) Section 1237 of such Act (16 U.S.C. 3837) is amended by 
        striking subsection (f).
            (5) Section 1239(b) of such Act (16 U.S.C. 3839(b)) is 
        amended by striking paragraph (3).
            (6) Section 1247 of such Act (16 U.S.C. 3847) is amended--
                    (A) by striking ``(a) In General.--''; and
                    (B) by striking subsection (b).
            (7) Section 1305 of the Omnibus Budget Reconciliation Act 
        of 1987 (Public Law 100-203; 101 Stat. 1330-18) is amended by 
        striking subsection (d).
            (8) Section 10 of the Farm Disaster Assistance Act of 1987 
        (Public Law 100-45; 101 Stat. 323) is hereby repealed.
    (c) No Effect on Outstanding Contracts.--The repeal and amendments 
made by this section shall not be construed to affect the terms of any 
contract entered into under subchapter B of chapter 1 of subtitle D of 
title XII of the Food Security Act of 1985 before the effective date of 
this Act.

SEC. 5103. ELIMINATION OF FUNDING FOR STATE WATER POLLUTION CONTROL 
              REVOLVING FUNDS.

    No funds may be appropriated to carry out title VI of the Federal 
Water Pollution Control Act for fiscal years beginning after September 
30, 1995.

SEC. 5104. ELIMINATION OF FUNDING FOR WATERSHED AND FLOOD PREVENTION 
              OPERATIONS.

    For fiscal years beginning after September 30, 1995, no funds may 
be appropriated for any of the following purposes:
            (1) Watershed operations and loan services authorized by 
        section 13 of the Flood Control Act approved December 22, 1944 
        (58 Stat. 905-906).
            (2) Emergency watershed protection operations conducted by 
        the Secretary of Agriculture.
            (3) Loan services authorized by section 8 of the Watershed 
        Protection and Flood Prevention Act (16 U.S.C. 1006a).

SEC. 5105. OBLIGATION LIMITATION FOR FLOOD CONTROL AND COASTAL 
              EMERGENCIES.

    The total of obligations incurred in fiscal year 1996 for expenses 
of the Corps of Engineers described under the heading ``Flood Control 
and Coastal Emergencies'' in title I of the Energy and Water 
Development Appropriations Act, 1995 (Public Law 103-316; 108 Stat. 
1710) may not exceed $15,000,000.

SEC. 5106. OBLIGATION LIMITATION FOR FLOOD CONTROL, MISSISSIPPI RIVER 
              AND TRIBUTARIES.

    The total of obligations incurred in fiscal year 1996 for expenses 
of the Corps of Engineers described under the heading ``Flood Control, 
Mississippi River and Tributaries, Arkansas, Illinois, Kentucky, 
Louisiana, Mississippi, Missouri, and Tennessee'' in title I of the 
Energy and Water Development Appropriations Act, 1995 (Public Law 103-
316; 108 Stat. 1709) may not exceed $320,000,000.
        Subtitle C--Restructuring of Department of the Interior

SEC. 5201. LIMITATION ON ACQUISITION OF LANDS BY BUREAU OF LAND 
              MANAGEMENT.

    (a) Congressional Findings.--The Congress finds that--
            (1) the Bureau of Land Management presently holds title to 
        1,800,000,000 acres of public land;
            (2) much of this land is marginal in value and left over 
        from the 19th century;
            (3) in many cases, the costs of maintaining and surveying 
        this land far exceed the actual value of these parcels;
            (4) the agency is presently facing a sizable budget backlog 
        which is hampering its ability to properly manage all of this 
        property;
            (5) under the Federal Land Policy and Management Act of 
        1976, the Bureau is required to identify public lands suitable 
        for sale, exchange, or transfer; and
            (6) the transfer of some of these parcels could effect 
        budget savings and greater management efficiencies for the 
        Bureau.
    (b) Acquisition of Lands by Bureau of Land Management.--
            (1) Prohibition.--Except as provided by subsection (c), 
        amounts appropriated or otherwise made available after the date 
        of the enactment of this Act may not be obligated or expended 
        by the Secretary of the Interior (hereafter in this section 
        referred to as the ``Secretary'') for the acquisition of any 
        lands or interests therein which are to be administered by the 
        Bureau of Land Management.
            (2) Acquisition by donation or exchange or with amounts 
        from fund.--After the date of the enactment of this Act, the 
        Secretary may acquire lands or interests therein for 
        administration by the Bureau of Land Management only by 
        exchange, by donation, or from amounts made available from the 
        Fund pursuant to subsection (c).
    (c) Bureau of Land Management Land Sale and Acquisition Fund.--
            (1) Establishment.--There is established in the Department 
        of the Interior a fund to be known as the ``Bureau of Land 
        Management Land Sale and Acquisition Fund'' (hereafter in this 
        section referred to as the ``Fund'').
            (2) Administration.--The Fund shall be administered by the 
        Secretary.
            (3) Deposits into fund.--There shall be deposited into the 
        Fund--
                    (A) all amounts received by the Secretary from the 
                disposal of any lands or interests therein administered 
                by the Bureau of Land Management; and
                    (B) all amounts received by the United States by 
                gift for acquisition of lands to be administered by the 
                Bureau of Land Management.
            (4) Expenditures from fund.--Amounts may be made available 
        from the Fund, subject to appropriation, for the acquisition of 
        lands or interests therein to be administered by the Bureau of 
        Land Management.
    (d) Information Required To Be Included in Annual Budget Requests 
Relating to Transfer or Disposal of Public Lands.--Each annual budget 
request submitted by the Secretary to the Congress shall be accompanied 
by information as to whether the Bureau of Land Management, through 
preparation of land-use plans pursuant to the Federal Land Policy and 
Management Act of 1976, has identified public lands which are suitable 
for transfer to other management or for disposal through exchange or 
otherwise, the transfer or disposal of which has been delayed because 
of incomplete surveys or other reasons. If enactment of additional 
legislation would be desirable in order to facilitate the transfer or 
disposal of public lands described in the request, the Secretary may 
include a proposal for such additional legislation in such request.

SEC. 5202. ABOLITION OF BUREAU OF MINES.

    (a) Termination of Functions, Positions, and Offices.--Upon the 
effective date of this Act, the Bureau of Mines shall be terminated and 
all functions of the Bureau and all positions and offices within the 
Bureau shall be terminated. As promptly as possible after the effective 
date of this Act the Administrator of the General Services 
Administration shall dispose of all facilities and property of the 
Bureau (including all research facilities and equipment owned by the 
Bureau) in accordance with the Federal Property and Administrative 
Services Act and other applicable provisions of law.
    (b) Administrative Provisions.--The provisions of this section 
shall not affect suits commenced prior to the date this section takes 
effect. In all such suits, proceedings shall be had, appeals taken, and 
judgments rendered in the same manner and effect as if this section had 
not been enacted. No suit, action, or other proceeding commenced by or 
against any officer in his official capacity as an officer of the 
Bureau of Mines shall abate by reason of the enactment of this section. 
No cause of action by or against the Bureau of Mines or by or against 
any officer thereof in his official capacity shall abate by reason of 
the enactment of this section. Any suit, action, or other proceeding 
brought against the Bureau of Mines or and officer thereof in his 
official capacity shall be continued with the Secretary of the Interior 
substituted as the defendant.
SEC. 5203. SALE OF HELIUM PROCESSING AND STORAGE FACILITY.

    (a) References.--Except as otherwise expressly provided, whenever 
in this section an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Helium Act (50 U.S.C. 167 to 167n).
    (b) Authority of Secretary.--Sections 3, 4, and 5 are amended to 
read as follows:

``SEC. 3. AUTHORITY OF SECRETARY.

    ``(a) Extraction and Disposal of Helium on Federal Lands.--(1) The 
Secretary may enter into agreements with private parties for the 
recovery and disposal of helium on Federal lands upon such terms and 
conditions as he deems fair, reasonable and necessary. The
 Secretary may grant leasehold rights to any such helium. The Secretary 
may not enter into any agreement by which the Secretary sells such 
helium other than to a private party with whom the Secretary has an 
agreement for recovery and disposal of helium. Such agreements may be 
subject to such rules and regulations as may be prescribed by the 
Secretary.
    ``(2) Any agreement under this subsection shall be subject to the 
existing rights of any affected Federal oil and gas lessee. Each such 
agreement (and any extension or renewal thereof) shall contain such 
terms and conditions as deemed appropriate by the Secretary.
    ``(3) This subsection shall not in any manner affect or diminish 
the rights and obligations of the Secretary and private parties under 
agreements to dispose of helium produced from Federal lands in 
existence at the enactment of the Helium Act of 1994 except to the 
extent that such agreements are renewed or extended after such date.
    ``(b) Storage, Transportation and Sale.--The Secretary is 
authorized to store, transport, and sell helium only in accordance with 
this Act.
    ``(c) Monitoring and Reporting.--The Secretary is authorized to 
monitor helium production and helium reserves in the United States and 
to periodically prepare reports regarding the amounts of helium 
produced and the quantity of crude helium in storage in the United 
States.

``SEC. 4. STORAGE AND TRANSPORTATION OF CRUDE HELIUM.

    ``(a) Storage and Transportation.--The Secretary is authorized to 
store and transport crude helium and to maintain and operate existing 
crude helium storage at the Bureau of Mines Cliffside Field, together 
with related helium transportation and withdrawal facilities.
    ``(b) Cessation of Production, Refining, and Marketing.--Effective 
one year after the date of enactment of the Helium Act of 1994, the 
Secretary shall cease producing, refining and marketing refined helium 
and shall cease carrying out all other activities relating to helium 
which the Secretary was authorized to carry out under this Act before 
the date of enactment of the Helium Act of 1994, except those 
activities described in subsection (a).
    ``(c) Disposal of Facilities.--(1) Within one year after the date 
of enactment of the Helium Act of 1994, the Secretary shall dispose of 
all facilities, equipment, and other real and personal property, 
together with all interests therein, held by the United States for the 
purpose of producing, refining and marketing refined helium. The 
disposal of such property shall be in accordance with the provisions of 
law governing the disposal of excess or surplus properties of the 
United States.
    ``(2) All proceeds accruing to the United States by reason of the 
sale or other disposal of such property shall be treated as moneys 
received under this chapter for purposes of section 6(f). All costs 
associated with such sale and disposal (including costs associated with 
termination of personnel) and with the cessation of activities under 
subsection (b) shall be paid from amounts available in the helium 
production fund established under section 6(f).
    ``(3) Paragraph (1) shall not apply to any facilities, equipment, 
or other real or personal property, or any interest therein, necessary 
for the storage and transportation of crude helium.
    ``(d) Existing Contracts.--All contracts which were entered into by 
any person with the Secretary for the purchase by such person from the 
Secretary of refined helium and which are in effect on the date of the 
enactment of the Helium Act of 1994 shall remain in force and effect 
until the date on which the facilities referred to in subsection (c) 
are disposed of. Any costs associated with the termination of such 
contracts shall be paid from the helium production fund established 
under section 6(f).

``SEC. 5. FEES FOR STORAGE, TRANSPORTATION AND WITHDRAWAL.

    ``Whenever the Secretary provides helium storage, withdrawal, or 
transportation services to any person, the Secretary is authorized and 
directed to impose fees on such person to reimburse the Secretary for 
the full costs of providing such storage, transportation, and 
withdrawal. All such fees received by the Secretary shall be treated as 
moneys received under this Act for purposes of section 6(f).''.
    (c) Sale of Crude Helium.--Section 6 is amended as follows:
            (1) Subsection (a) is amended by striking out ``from the 
        Secretary'' and inserting ``from persons who have entered into 
        enforceable contracts to purchase an equivalent amount of crude 
        helium from the Secretary''.
            (2) Subsection (b) is amended by inserting ``crude'' before 
        ``helium'' and by adding the following at the end thereof: 
        ``Except as may be required by reason of subsection (a), the 
        Secretary shall not make sales of crude helium under this 
        section in such amounts as will disrupt the market price of 
        crude helium.''.
            (3) Subsection (c) is amended by inserting ``crude'' before 
        ``helium'' after the words ``Sales of'' and by striking 
        ``together with interest as provided in this subsection'' and 
        all that follows down through the period at the end of such 
        subsection and inserting the following: ``all funds required to 
        be repaid to the United States as of October 1, 1993 under this 
        section (hereinafter referred to as `repayable amounts'). The 
        price at which crude helium is sold by the Secretary shall not 
        be less than the amount determined by the Secretary as follows:
            ``(1) Divide the outstanding amount of such repayable 
        amounts by the volume (in mcf) of crude helium owned by the 
        United States and stored in the Bureau of Mines Cliffside Field 
        at the time of the sale concerned.
            ``(2) Adjust the amount determined under paragraph (1) by 
        the Consumer Price Index for years beginning after December 31, 
        1993.''.
            (4) Subsection (d) is amended to read as follows:
    ``(d) Extraction of Helium From Deposits on Federal Lands.--All 
moneys received by the Secretary from the sale or disposition of helium 
on Federal lands shall be paid to the Treasury and credited against the 
amounts required to be repaid to the Treasury under subsection (c) of 
this section.''.
            (5) Subsection (e) is repealed.
            (6) Subsection (f) is amended by inserting ``(1)'' after 
        ``(f)'' and by adding the following at the end thereof:
    ``(2) Within 7 days after the commencement of each fiscal year 
after the disposal of the facilities referred to in section 4(c), all 
amounts in such fund in excess of $2,000,000 (or such lesser sum as the 
Secretary deems necessary to carry out this Act during such fiscal 
year) shall be paid to the Treasury and credited as provided in 
paragraph (1). Upon repayment of all amounts referred to in subsection 
(c), the fund established under this section shall be terminated and 
all moneys received under this Act shall be deposited in the Treasury 
as General Revenues.''.
    (d) Elimination of Stockpile.--Section 8 is amended to read as 
follows:

``SEC. 8. ELIMINATION OF STOCKPILE.

    ``(a) Review of Reserves.--Not later than January 1, 2014 the 
Secretary shall review the known helium reserves in the United States 
and make a determination as to the expected life of the domestic helium 
reserves (other than federally owned helium stored at the Cliffside 
Reservoir) at that time.
    ``(b) Reserves Below 1 BCF in 2014.--Not later than January 1, 
2014, if the Secretary determines that domestic helium reserves (other 
than federally owned helium stored at the Cliffside Reservoir) are less 
than 1 billion cubic feet (bcf), the Secretary shall commence making 
sales of crude helium from helium reserves owned by the United States 
in such amounts as may be necessary to dispose of all such helium 
reserves in excess of 600 million cubic feet (mcf) by January 1, 2019. 
The sales shall be at such times and in such lots as the Secretary 
determines, in consultation with the helium industry, necessary to 
carry out this subsection. The price for all such sales, as determined 
by the Secretary in consultation with the helium industry, shall be 
such as will ensure repayment of the amounts required to be repaid to 
the Treasury under section 6(c) by the year 2019 with minimum market 
disruption. The date specified in this subsection for completion of 
such sales and for repayment of debt may be extended by the Secretary 
for a period of not to exceed 5 additional years if necessary in order 
to assure repayment of such debt with minimum market disruption.
    ``(c) Reserves Above 1 BCF in 2014.--Not later than January 1, 
2014, if the Secretary determines that domestic helium reserves (other 
than federally owned helium stored at the Cliffside Reservoir) are more 
than 1 billion cubic feet (bcf), the Secretary shall commence making 
sales of crude helium from helium reserves owned by the United States 
in such amounts as may be necessary to dispose of all such helium 
reserves in excess of 600 million cubic feet (mcf) by January 1, 2024. 
The sales shall be at such times and in such lots as the Secretary 
determines, in consultation with the helium industry, necessary to 
carry out this subsection with minimum disruption of the market for 
crude helium.
    ``(d) Discovery of Additional Reserves.--The discovery of 
additional helium reserves after the year 2014 shall not affect the 
duty of the Secretary to make sales of helium as provided in subsection 
(b) or (c), as the case may be.''.
    (e) Repeal of Authority To Borrow.--Sections 12 and 15 are 
repealed.

SEC. 5204. ABOLITION OF GEOLOGICAL SURVEY.

    (a) Transfer of Basic Research Functions to National Science 
Foundation.--Upon the effective date of this section there shall be 
transferred to and vested in the National Science Foundation all basic 
research functions of the United States Geological Survey.
    (b) Transfer of Stream Monitoring Functions.--Upon the effective 
date of this Act there shall be transferred to and vested in the 
Administrator of the Environmental Protection Agency all stream 
monitoring functions of the United States Geological Survey, (together 
with all other water resources and water quality investigation 
functions of the Survey).
    (c) Termination of Other Functions, Positions, and Offices.--Upon 
the effective date of this section, the United States Geological Survey 
shall be terminated and all functions of the Survey not transferred 
under this section shall be terminated. As promptly as possible after 
the effective date of this Act the Administrator of the General 
Services Administration shall dispose of all facilities and property of 
the Survey (including all research facilities and equipment owned by 
the Survey and used for purposes of basic research, such as the seismic 
network and volcano observatories) in accordance with the Federal 
Property and Administrative Services Act and other applicable 
provisions of law. Each position and office within the United States 
Geological Survey which was performing a function terminated by this 
subsection shall terminate.
    (d) Administrative Provisions.--
            (1) Authorities transferred.--To the extent necessary or 
        appropriate to perform any function transferred by this 
        section, the head of the agency or instrumentality to which 
        such function is transferred may exercise, in carrying out the 
        function so transferred, any authority or part thereof 
        available by law, including appropriation Acts, to the United 
        States Geological Survey or any official thereof.
            (2) Transfer and allocations of appropriations and 
        personnel.--(A) Except as otherwise provided in this section, 
        the personnel employed in connection with, and the assets, 
        liabilities, contracts, property, records, and unexpended 
        balance of appropriations authorizations, allocations, and 
        other funds employed, held, used, arising from, available to or 
        to be made available in connection with the functions 
        transferred by this section, are hereby transferred to the 
        National Science Foundation (in the case of functions referred 
        to in subsection (a)) or to the Administrator of the 
        Environmental Protection Agency (in the case of functions 
        referred to in subsection (b)) for appropriate allocation. 
        Unexpended funds transferred pursuant to this subsection shall 
        only be used for the purposes for which the funds were 
        originally authorized and appropriated.
            (3) Effect on personnel.--(A) Except as otherwise provided 
        in this section, the transfer pursuant to this section of full-
        time personnel (except special Government employees) and part-
        time personnel holding permanent positions pursuant to this 
        section shall not cause any such employee to be separated or 
        reduced in grade or compensation for one year after the date of 
        enactment of this Act.
            (B) Any person who, on the effective date of this section, 
        held a position compensated in accordance with the Executive 
        Schedule prescribed in chapter 53 of title 5, United States 
        Code, and who, without a break in service, is appointed in 
        National Science Foundation or the Environmental Protection 
        Agency to a position having duties comparable to those 
        performed immediately preceding his appointment shall continue 
        to be compensated in his new position at not less than the rate 
        provided for his previous position, for the duration of his 
        service in the new position.
    (e) Incidental Transfers.--The Director of the Office of Management 
and Budget, in consultation with the Secretary of the Interior, is 
authorized and directed to make such determinations as may be necessary 
with regard to the transfer of functions which relate to or are 
utilized by the United States geological Survey, to make such 
additional incidental dispositions of personnel, assets, liabilities, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations,
 and other funds held, used, arising from, available to or to be made 
available in connection with the functions transferred by this section, 
as he may deem necessary to accomplish the purposes of this section.
    (f) Savings Provisions.--(1) All orders, determinations, rules, 
regulations, permits, contracts, certificates, licenses, and 
privileges--
            (A) which have been issued, made, granted, or allowed to 
        become effective in the performance of functions which are 
        transferred under this section, and
            (B) which are in effect at the time this section takes 
        effect,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Secretary of the Interior, the National Science 
Foundation, the Administrator of the Environmental Protection Agency, 
or other authorized officials, a court of competent jurisdiction, or by 
operation of law.
    (2) Except as provided in paragraph (4)--
            (A) the provisions of this section shall not affect suits 
        commenced prior to the date this section takes effect, and
            (B) in all such suits, proceedings shall be had, appeals 
        taken, and judgments rendered in the same manner and effect as 
        if this section had not been enacted.
    (3) No suit, action, or other proceeding commenced by or against 
any officer in his official capacity as an officer of the United States 
Geological Survey shall abate by reason of the enactment of this 
section. No cause of action by or against the United States Geological 
Survey or by or against any officer thereof in his official capacity 
shall abate by reason of the enactment of this section.
    (4) If, before the date on which this section takes effect, the 
United States Geological Survey or officer thereof in his official 
capacity is a party to a suit, and under this section, any function of 
the Survey or of such officer is transferred to the National Science 
Foundation or the Administrator of the Environmental Protection Agency, 
then such suit shall be continued with the National Science Foundation 
or the Administrator, as the case may be, substituted.
    (g) References.--With respect to any functions transferred by this 
section, any reference in any other Federal law to the United States 
Geological Survey or any officer or office the functions of which are 
so transferred shall be deemed to refer to the National Science 
Foundation or the Administrator of the Environmental Protection Agency 
or the officer or office thereof in which this section vests such 
functions.

SEC. 5205. DOWNSIZING OF MINERALS MANAGEMENT SERVICE.

    Upon the enactment of this Act, the functions of the Outer 
Continental Shelf Regional Offices of the Minerals Management Service 
serving Alaska, the Pacific Coast and the Atlantic regions shall be 
transferred to such officer within the Department of the Interior as 
may be designated by the Secretary of the Interior and the Secretary 
shall take such actions as may be necessary to terminate those regional 
offices.

SEC. 5206. DOWNSIZING OF BUREAU OF RECLAMATION

    Notwithstanding any other provision of law, amounts appropriated 
for the fiscal year 1996 and for each of the 4 following fiscal years 
(not including spending authority from offsetting collections) for the 
construction program of the Bureau of Reclamation shall not exceed 
$249,573,000. Notwithstanding any other provision of law, amounts 
appropriated for the fiscal year 1996 and for each of the 4 following 
fiscal years (not including spending authority from offsetting 
collections) for the operation and maintenance of reclamation projects 
or parts thereof and other facilities of the Bureau of Reclamation 
shall not exceed $282,898,000.

SEC. 5207. CONSOLIDATION OF BUREAU OF INDIAN AFFAIRS.

    Not later than one year after the date of the enactment of this 
Act, the Secretary of the Interior shall consolidate the area service 
offices of the Bureau of Indian Affairs into six offices, of which four 
shall be regional service centers and two shall be special service 
offices. In carrying out this section, the Secretary shall consult with 
the Task Force on Bureau of Indian Affairs Reorganization, as provided 
in the Department of the Interior and Related Agencies Appropriations 
Act, 1994 (Public Law 103-138).

SEC. 5208. ABOLITION OF OFFICE OF TERRITORIAL AND INTERNATIONAL 
              AFFAIRS.

    (a) In General.--The Office of Territorial and International 
Affairs of the Department of the Interior, established pursuant to the 
Order of the Secretary of the Interior 3046, of February 14, 1980, as 
amended, is hereby abolished.
    (b) Transfer of Responsibilities.--All responsibilities of the 
Office of Territorial and International Affairs relating to the 
administration or termination of the Trust Territory of the Pacific 
Islands, to the implementation of the Compact of Free Association 
between the Government of the United States of America and the 
Government of Palau (48 U.S.C. 1681 note), or to the implementation of 
the Compact of Free Association between the Government of the United 
States of America and the Governments of the Marshall Islands and the 
Federated States of Micronesia (48 U.S.C. 1681 note), are hereby 
transferred to the Office of East Asian and Pacific Affairs of the 
Department of State. All responsibilities of the Office of Territorial 
and International Affairs relating to technical operations, or 
management assistance and not described in the preceding sentence are 
hereby transferred to the Department of Commerce.
    (c) Elimination of Position of Assistant Secretary.--
            (1) In general.--The position of Assistant Secretary for 
        Territorial and International Affairs at the Department of the 
        Interior is hereby eliminated.
            (2) Conforming amendment.--Section 5315 of title 5, United 
        States Code, is amended by striking ``Assistant Secretaries of 
        the Interior (6).'' and inserting ``Assistant Secretaries of 
        the Interior (5).''.
    (d) Effective Date.--This subsection shall take effect on October 
1, 1995.
SEC. 5209. ABOLITION OF NATIONAL BIOLOGICAL SURVEY.

    (a) In General.--The National Biological Survey is hereby 
abolished.
    (b) Prohibition of Appropriations.--No funds are authorized to be 
appropriated for the National Biological Survey.

SEC. 5210. HARDROCK MINING ROYALTIES.

    (a) Definitions.--As used in this section:
            (1) The term ``locatable mineral'' means any mineral not 
        subject to disposition under any of the following:
                    (A) The Mineral Leasing Act (30 U.S.C. 181 and 
                following).
                    (B) The Geothermal Steam Act of 1970 (30 U.S.C. 100 
                and following).
                    (C) The Act of July 31, 1947, commonly known as the 
                Materials Act of 1947 (30 U.S.C. 601 and following).
                    (D) The Mineral Leasing for Acquired Lands Act (30 
                U.S.C. 351 and following).
            (2) The term ``mineral activities'' means any activity for, 
        related to or incidental to mineral exploration, mining, 
        beneficiation and processing activities for any locatable 
        mineral, including access. When used with respect to this term:
                    (A) The term ``exploration'' means those techniques 
                employed to locate the presence of a locatable mineral 
                deposit and to establish its nature, position, size, 
                shape, grade and value.
                    (B) The term ``mining'' means the processes 
                employed for the extraction of a locatable mineral from 
                the earth.
                    (C) The term ``beneficiation'' means the crushing 
                and grinding of locatable mineral ore and such 
                processes are employed to free the mineral from other 
                constituents, including but not necessarily limited to, 
                physical and chemical separation techniques.
                    (D) The term ``processing'' means processes 
                downstream of beneficiation employed to prepare 
                locatable mineral ore into the final marketable 
                product, including but not limited to, smelting and 
                electrolytic refining.
            (3) The term ``mining claim'' means a claim for the 
        purposes of mineral activities.
            (4) The term ``Secretary'' means, unless otherwise provided 
        in this section, the Secretary of the Interior acting through 
        the Director of the Minerals Management Service.
    (b) Reservation of Royalty.--Production of all locatable minerals 
from any mining claim located under the general mining laws, or mineral 
concentrates or products derived from locatable minerals from any 
mining claim located under the general mining laws, as the case may be, 
shall be subject to a royalty of 8 percent of the gross income from 
such production. The claimholder and any operator to whom the 
claimholder has assigned the obligation to make royalty payments under 
the claim and any person who controls such claimholder or operator 
shall be jointly and severally liable for payment of such royalties.
    (c) Duties of Claim Holders, Operators, and Transporters.--(1) A 
person--
            (A) who is required to make any royalty payment under this 
        section shall make such payments to the United States at such 
        times and in such manner as the Secretary may by rule 
        prescribe; and
            (B) shall notify the Secretary, in the time and manner as 
        may be specified by the Secretary, of any assignment that such 
        person may have made of the obligation to make any royalty or 
        other payment under a mining claim.
    (2) Any person paying royalties under this section shall file a 
written instrument, together with the first royalty payment, affirming 
that such person is liable to the Secretary for making proper payments 
for all amounts due for all time periods for which such person as a 
payment responsibility. Such liability for the period referred to in 
the preceding sentence shall include any and all additional amounts 
billed by the Secretary and determined to be due by final agency or 
judicial action. Any person liable for royalty payments under this 
section who assigns any payment obligation shall remain jointly and 
severally liable for all royalty payments due for the claim for the 
period.
    (3) A person conducting mineral activities shall--
            (A) develop and comply with the site security provisions in 
        operations permit designed to protect from theft the locatable 
        minerals, concentrates or products derived therefrom which are 
        produced or stored on a mining claim, and such provisions shall 
        conform with such minimum standards as the Secretary may 
        prescribe by rule, taking into account the variety of 
        circumstances on mining claims; and
            (B) not later than the 5th business day after production 
        begins anywhere on a mining claim, or production resumes after 
        more than 90 days after production was suspended, notify the 
        Secretary, in the manner prescribed by the Secretary, of the 
        date on which such production has begun or resumed.
    (4) The Secretary may by rule require any person engaged in 
transporting a locatable mineral, concentrate, or product derived 
therefrom to carry on his or her person, in his or her vehicle, or in 
his or her immediate control, documentation showing, at a minimum, the 
amount, origin, and intended destination of the locatable mineral, 
concentrate, or product derived therefrom in such circumstances as the 
Secretary determines is appropriate.
    (d) Recordkeeping and Reporting Requirements.--(1) A claim holder, 
operator, or other person directly involved in developing, producing, 
processing, transporting, purchasing, or selling locatable minerals, 
concentrates, or products derived therefrom, subject to this Act, 
through the point of royalty computation shall establish and maintain 
any records, make any reports, and provide any information that the 
Secretary may reasonably require for the purposes of implementing this 
section or determining compliance with rules or orders under this 
section. Such records shall include, but not be limited to, periodic 
reports, records, documents, and other data. Such reports may also 
include, but not be limited to, pertinent technical and financial data 
relating to the quantity, quality, composition volume, weight, and 
assay of all minerals extracted from the mining claim. Upon the request 
of any officer or employee duly designated by the Secretary or
 any State conducting an audit or investigation pursuant to this 
section, the appropriate records, reports, or information which may be 
required by this section shall be made available for inspection and 
duplication by such officer or employee or State.
    (2) Records required by the Secretary under this section shall be 
maintained for 6 years after cessation of all mining activity at the 
claim concerned unless the Secretary notifies the operator that he or 
she has initiated an audit or investigation involving such records and 
that such records must be maintained for a longer period. In any case 
when an audit or investigation is underway, records shall be maintained 
until the Secretary releases the operator of the obligation to maintain 
such records.
    (e) Audits.--The Secretary is authorized to conduct such audits of 
all claim holders, operators, transporters, purchasers, processors, or 
other persons directly or indirectly involved in the production or 
sales of minerals covered by this section, as the Secretary deems 
necessary for the purposes of ensuring compliance with the requirements 
of this section. For purposes of performing such audits, the Secretary 
shall, at reasonable times and upon request, have access to, and may 
copy, all books, papers and other documents that relate to compliance 
with any provision of this section by any person.
    (f) Cooperative Agreements.--(1) The Secretary is authorized to 
enter into cooperative agreements with the Secretary of Agriculture to 
share information concerning the royalty management of locatable 
minerals, concentrates, or products derived therefrom, to carry out 
inspection, auditing, investigation, or enforcement (not including the 
collection of royalties, civil or criminal penalties, or other 
payments) activities under this section in cooperation with the 
Secretary, and to carry out any other activity described in this 
section.
    (2) Except as provided in paragraph (4)(A) of this subsection 
(relating to trade secrets), and pursuant to a cooperative agreement, 
the Secretary of Agriculture shall, upon request, have access to all 
royalty accounting information in the possession of the Secretary 
respecting the production, removal, or sale of locatable minerals, 
concentrates, or products derived therefrom from claims on lands open 
to location under the general mining laws.
    (3) Trade secrets, proprietary, and other confidential information 
shall be made available by the Secretary pursuant to a cooperative 
agreement under this subsection to the Secretary of Agriculture upon 
request only if--
            (A) the Secretary of Agriculture consents in writing to 
        restrict the dissemination of the information to those who are 
        directly involved in an audit or investigation under this 
        section and who have a need to know;
            (B) the Secretary of Agriculture accepts liability for 
        wrongful disclosure; and
            (C) the Secretary of Agriculture demonstrates that such 
        information is essential to the conduct of an audit or 
        investigation under this subsection.
    (g) Interest and Substantial Underreporting Assessments.--(1) In 
the case of mining claims where royalty payments are not received by 
the Secretary on the date that such payments are due, the Secretary 
shall charge interest on such under payments at the same interest rate 
as is applicable under section 6621(a)(2) of the Internal Revenue Code 
of 1986. In the case of an underpayment, interest shall be computed and 
charged only on the amount of the deficiency and not on the total 
amount.
    (2) If there is any underreporting of royalty owed on production 
from a claim for any production month by any person liable for royalty 
payments under this section, the Secretary may assess a penalty of 10 
percent of the amount of that underreporting.
    (3) If there is a substantial underreporting of royalty owed on 
production from a claim for any production month by any person 
responsible for paying the royalty, the Secretary may assess a penalty 
of 10 percent of the amount of that underreporting.
    (4) For the purposes of this subsection, the term ``substantial 
underreporting'' means the difference between the royalty on the value 
of the production which should have been reported and the royalty on 
the value of the production which was reported, if the value which 
should have been reported is greater than the value which was reported. 
An underreporting constitutes a ``substantial underreporting'' if such 
difference exceeds 10 percent of the royalty on the value of production 
which should have been reported.
    (5) The Secretary shall not impose the assessment provided in 
paragraphs (2) or (3) of this subsection if the person liable for 
royalty payments under this section corrects the underreporting before 
the date such person receives notice from the Secretary that an 
underreporting may have occurred, or before 90 days after the date of 
the enactment of this section, whichever is later.
    (6) The Secretary shall waive any portion of an assessment under 
paragraph (2) or (3) of this subsection attributable to that portion of 
the underreporting for which the person responsible for paying the 
royalty demonstrates that--
            (A) such person had written authorization from the 
        Secretary to report royalty on the value of the production on 
        basis on which it was reported,
            (B) such person had substantial authority for reporting 
        royalty on the value of the production on the basis on which it 
        was reported,
            (C) such person previously had notified the Secretary, in 
        such manner as the Secretary may by rule prescribe, of relevant 
        reasons or facts affecting the royalty treatment of specific 
        production which led to the underreporting, or
            (D) such person meets any other exception which the 
        Secretary may, by rule, establish.
    (7) All penalties collected under this subsection shall be 
deposited in the Treasury.
    (h) Effective Date.--The royalty under this section shall take 
effect with respect to the production of locatable minerals after the 
enactment of this Act, but any royalty payments attributable to 
production during the first 12 calendar months after the enactment of 
this Act shall be payable at the expiration of such 12-month period.
                   Subtitle D--Administrative Reform

SEC. 5301. REDUCTION IN OVERHEAD EXPENSES OF ENVIRONMENTAL PROTECTION 
              AGENCY.

    (a) In General.--The amount obligated by the Environmental 
Protection Agency during fiscal year 1996 for overhead expenses shall 
not exceed an amount sufficient to reduce outlays for such expenses 
during such fiscal year (as compared to such outlays during fiscal year 
1995) by $151,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).

              Subtitle E--National Marine Program Reforms

SEC. 5401. TERMINATION OF NATIONAL COASTAL ZONE MANAGEMENT GRANTS AND 
              NATIONAL SEA GRANT COLLEGE PROGRAM GRANTS.

    (a) Termination of Grant Authority.--Notwithstanding any other 
provision of law, no grant may be made under--
            (1) the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
        et seq.); or
            (2) the National Sea Grant College Program Act (33 U.S.C. 
        1121 et seq.).
    (b) Existing Grant Agreements Not Affected.--This section shall not 
affect any grant agreement in effect before the date of the enactment 
of this Act.

SEC. 5402. DISPOSAL OF NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION 
              FLEET.

    (a) Disposal of NOAA Fleet.--The Secretary of Commerce--
            (1) shall expeditiously dispose of all ownership interest 
        of the United States in all vessels in the National Oceanic and 
        Atmospheric Administration fleet;
            (2) may not acquire any ownership interest in any vessel 
        for use by the National Oceanic and Atmospheric Administration;
            (3) may obtain vessels for use by the National Oceanic and 
        Atmospheric Administration only by charter of privately-owned 
        vessels; and
            (4) may obtain vessel operation services for the National 
        Oceanic and Atmospheric Administration only under contracts 
        with private-sector sources.
    (b) Existing Contracts Not Affected.--This section shall not affect 
any contract in effect before the date of the enactment of this Act.

SEC. 5403. RESCISSION OF FUNDS AVAILABLE FOR NATIONAL OCEANIC AND 
              ATMOSPHERIC ADMINISTRATION PROCUREMENT AND MODERNIZATION.

    Of the funds made available in appropriations Acts for fiscal year 
1995 for procurement and modernization for the National Oceanic and 
Atmospheric Administration, there are rescinded so much as exceed the 
amount available for those purposes for fiscal year 1994.

SEC. 5404. RESCISSION OF FUNDS AVAILABLE FOR NATIONAL OCEANIC AND 
              ATMOSPHERIC ADMINISTRATION CONSTRUCTION.

    Of the funds made available in appropriations Acts for fiscal year 
1995 for construction for the National Oceanic and Atmospheric 
Administration, there are rescinded so much as exceed the amount 
available for that purpose for fiscal year 1994.

                 Subtitle F--Corps of Engineers Reform

SEC. 5501. REORGANIZATION OF CORPS OF ENGINEERS.

    The Secretary of the Army shall reorganize the Corps of Engineers 
by reorganizing the headquarters offices, reducing the number of 
division offices from 11 to not more than 6, and restructuring the 
district functions so as to increase the efficiency of the Corps of 
Engineers and reduce staff and costs, to achieve at least $50,000,000 
in net annual savings by fiscal year 1998.

SEC. 5502. OBLIGATION LIMITATION FOR CORPS OF ENGINEERS CONSTRUCTION.

    The total of obligations incurred in fiscal year 1996 for expenses 
of the Corps of Engineers described under the heading ``Construction, 
General'' in title I of the Energy and Water Development Appropriations 
Act, 1995 (Public Law 103-316; 108 Stat. 1709-1710) may not exceed 
$959,000,000.

SEC. 5503. OBLIGATION LIMITATION FOR CORPS OF ENGINEERS OPERATION AND 
              MAINTENANCE.

    The total of obligations incurred in fiscal year 1996 for expenses 
of the Corps of Engineers described under the heading ``Operations and 
Maintenance, General'' in title I of the Energy and Water Development 
Appropriations Act, 1995 (Public Law 103-316; 108 Stat. 1709-1710) may 
not exceed $1,611,600,000.

SEC. 5504. OBLIGATION LIMITATION FOR CORPS OF ENGINEERS GENERAL 
              INVESTIGATIONS.

    The total of obligations incurred in fiscal year 1996 for expenses 
of the Corps of Engineers described under the heading ``General 
Investigations'' in title I of the Energy and Water Development 
Appropriations Act, 1995 (Public Law 103-316; 108 Stat. 1707) may not 
exceed $148,000,000.
                         TITLE VI--AGRICULTURE

             Subtitle A--Agriculture Research and Extension

SEC. 6001. CONSOLIDATION OF AGRICULTURAL RESEARCH SERVICE, COOPERATIVE 
              STATE RESEARCH SERVICE, AND EXTENSION SERVICE.

    (a) Consolidation Required.--The Secretary of Agriculture shall 
consolidate the agricultural research agencies of the Department of 
Agriculture specified in subsection (b) for the purpose of reducing the 
number of personnel in these agencies and eliminating duplicative 
overhead expenses in these agencies. In accomplishing this 
consolidation, the Secretary shall pursue the objective of reducing the 
annual administrative expenses of the consolidated agricultural 
research agency by an amount equal to at least 50 percent of the 
administrative expenses of these agencies in fiscal year 1995.
    (b) Agencies Subject to Consolidation.--Subsection (a) shall apply 
with respect to the Agricultural Research Service, the Cooperative 
State Research Service, and the Extension Service of the Department of 
Agriculture (including personnel and field, regional, and national 
offices of these agencies).

SEC. 6002. TERMINATION OF COOPERATIVE AGRICULTURAL EXTENSION WORK IN 
              DISTRICT OF COLUMBIA.

    (a) Extension Work Termination.--Section 208 of the District of 
Columbia Public Postsecondary Education Reorganization Act (Public Law 
93-471; 88 Stat. 1428; Sec. 31-1518, D.C. Code) is amended by striking 
subsections (c) and (d) relating to the authorization of appropriations 
of funds for the provision of cooperative agricultural extension work 
in District of Columbia.
    (b) Conforming Amendment.--Section 3 of the Act of May 8, 1914 
(commonly known as the Smith-Lever Act; 7 U.S.C. 343), is amended by 
adding at the end the following new subsection:
    ``(g) The District of Columbia shall not be eligible to receive any 
sums appropriated under this section.''.

SEC. 6003. RURAL TECHNOLOGY GRANTS.

    Section 310B of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932) is amended by striking subsections (f), (g), and (h) 
relating to the provision of grants to nonprofit institutions for the 
purpose of enabling such institutions to establish and operate centers 
for rural technology or cooperative development.

SEC. 6004. CAP ON AUTHORIZATION OF APPROPRIATIONS FOR AGRICULTURAL 
              TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and Trade 
Act of 1990 (7 U.S.C. 5926) is amended by striking ``$12,000,000'' and 
inserting ``$1,037,850''.

SEC. 6005. CAP ON AUTHORIZATION OF APPROPRIATIONS FOR RENEWABLE 
              RESOURCES EXTENSION PROGRAM.

    Section 6 of the Renewable Resources Extension Act of 1978 (16 
U.S.C. 1675) is amended by striking the first sentence and inserting 
the following: ``There are authorized to be appropriated to implement 
this Act $2,839,850 for each of the fiscal years 1996 through 2000.''.

                     Subtitle B--Agricultural Trade

SEC. 6101. REDUCTION OF SPENDING FOR EXPORT MARKETING AND INTERNATIONAL 
              ACTIVITIES.

    Notwithstanding any other provision of law, the cooperator market 
development program of the Foreign Agricultural Service shall be 
discontinued. The Secretary of Agriculture may provide for the orderly 
phase out of this program.

SEC. 6102. ELIMINATION OF EXPORT ENHANCEMENT PROGRAM.

    (a) Repeal.--Title III of the Agricultural Trade Act of 1978 (7 
U.S.C. 5651 et seq.) is repealed.
    (b) Effect of Repeal on Existing Agreements.--The repeal by 
subsection (a) of the export enhancement program under title III of the 
Agricultural Trade Act of 1978 shall not affect the validity or 
continued operation of an agreement entered into before the date of the 
enactment of this Act under such title.

SEC. 6103. REDUCTION OF LOAN GUARANTEE PROGRAM.

    Subparagraph (A) of section 211(b)(1) of The Agricultural Trade Act 
of 1978 (7 U.S.C. 5641(b)(1)) is amended to read as follows:
                            ``(A) Maximum amounts.--The Commodity 
                        Credit Corporation shall make available for 
                        each of the fiscal years 1994 through 1995 not 
                        more than $3,600,000,000 in credit guarantees 
                        under section 202(a).''.

SEC. 6104. ELIMINATION OF MARKET PROMOTION PROGRAM.

    (a) Repeal.--Section 203 of the Agricultural Trade Act of 1978 (7 
U.S.C. 5623) is repealed.
    (b) Conforming Amendments.--The Agricultural Trade Act of 1978 is 
amended--
            (1) in section 211 (7 U.S.C. 5641), by striking subsection 
        (c); and
            (2) in section 402(a)(1) (7 U.S.C. 5662(a)(1)), by striking 
        ``203,''.
    (c) Effect of Repeal on Existing Agreements.--The repeal by 
subsection (a) of the market promotion program established pursuant to 
section 203 of the Agricultural Trade Act of 1978 shall not affect the 
validity or continued operation of an agreement entered into before the 
date of the enactment of this Act to provide assistance under such 
section.

        Subtitle C--Department of Agriculture Overhead Reduction

SEC. 6201. REDUCTION IN OVERHEAD EXPENSES OF DEPARTMENT OF AGRICULTURE.

    (a) In General.--The amount obligated by the Department of 
Agriculture during fiscal year 1996 for overhead expenses shall not 
exceed an amount sufficient to reduce outlays for such expenses during 
such fiscal year (as compared to such outlays during fiscal year 1995) 
by $400,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).

                        Subtitle D--Loan Reform
SEC. 6301. TERMINATION OF GRANT PROGRAM TO ASSIST STATE MEDIATION 
              PROGRAMS.

    (a) Termination.--Subtitle A of title V of the Agricultural Credit 
Act of 1987 (7 U.S.C. 5101-5106) relating to matching grants for State 
mediation programs is repealed.
    (b) Effect of Termination.--The amendment made by subsection (a) 
shall not affect any grant made under section 502 of the Agricultural 
Credit Act of 1987 (7 U.S.C. 5102) before the date of the enactment of 
this Act, or any conditions or requirements in connection with the use 
of such a grant imposed before such date.
    (c) Conforming Amendment.--The table of contents in section 1(b) of 
the Agricultural Credit Act of 1987 (Public Law 100-233; 101 Stat. 
1568) is amended by striking the items related to subtitle A of title V 
of such Act.

                   Subtitle F--Crop Commodity Reform
SEC. 6401. ELIMINATION OF PRICE SUPPORT PROGRAMS FOR AGRICULTURAL 
              COMMODITIES AND RELATED MARKETING QUOTAS.

    (a) Elimination of Price Support Programs.--(1) Except as provided 
in paragraph (2), the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) 
is repealed.
    (2) Paragraph (1) shall not apply to the following sections of the 
Agricultural Act of 1949:
            (A) The first section (7 U.S.C. 1421 note), containing the 
        short title of the Act.
            (B) Section 204 (7 U.S.C. 1446e), relating to the milk 
        price support program.
            (C) Section 404 (7 U.S.C. 1424), relating to utilization of 
        services and facilities of Commodity Credit Corporation.
            (D) Section 405 (7 U.S.C. 1425), relating to personal 
        liability of producers for deficiencies.
            (E) Section 407 (7 U.S.C. 1427), relating to Commodity 
        Credit Corporation sales price restrictions.
            (F) Section 407A (7 U.S.C. 1427-1), relating to quality 
        requirements for Commodity Credit Corporation owned grain.
            (G) Section 412 (7 U.S.C. 1429), relating to determinations 
        by the Secretary of Agriculture.
            (H) Section 421 (7 U.S.C. 1431), relating to penalties for 
        misuse of feed intended to relieve distress or preserve 
        foundation herds.
            (I) Section 422 (7 U.S.C. 1431a), relating to forgiveness 
        of violations.
            (J) Title VI (7 U.S.C. 1471-1471j), relating to emergency 
        livestock feed assistance.
    (b) Elimination of Marketing Quotas.--(1) Except as provided in 
paragraph (2), title III of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1301 et seq.) is repealed.
    (2) Paragraph (1) shall not apply to subtitle F of such title 
relating to miscellaneous provisions and authorization of 
appropriations.
    (c) Conforming Amendments Regarding Other Commodities.--(1) 
Subtitle E of title XI of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 1421 note), relating to 
an options pilot program, is repealed.
    (2) Section 403 of the Food Security Act of 1985 (7 U.S.C. 1444e-
1), relating to price support for corn silage, is repealed.
    (d) Savings Provision.--A repeal made by this section shall not 
affect the liability of any person under any provision of law as in 
effect before the date of the enactment of this Act.

SEC. 6402. ELIMINATING FEDERAL SUPPORT FOR HONEY.
    (a) In General.--Subsection (a) of section 207 of the Agricultural 
Act of 1949 (7 U.S.C. 1446h) is amended to read as follows:
    ``(a) Price Support.--
            ``(1) In general.--For each of the 1991 through 1995 crops 
        of honey, the price of honey shall be supported through loans, 
        purchases, or other operations, except that for the 1995 crops, 
        the price of honey shall be supported through recourse loans.
            ``(2) Rate of support for crop years before 1994.--For the 
        1991 through 1993 crop years, the rate of support shall be not 
        less than 53.8 cents per pound.
            ``(3) Rate of support for crop years after 1994.--For the 
        1995 crop year, the Secretary shall provide recourse loans to 
        producers at such a rate that minimizes costs and forfeitures, 
        except that such rate shall not be less than 44 cents a pound. 
        Section 407 of this Act shall not apply to honey forfeited to 
        the Commodity Credit Corporation under loans made under this 
        paragraph.
            ``(4) Effect of failure to repay.--A producer who fails to 
        repay a loan made under paragraph (3) by the end of the crop 
        year following the crop year for which such loan was made shall 
        be ineligible for a loan under this section for subsequent crop 
        years, except that the Secretary may waive this provision in 
        any case where in which the Secretary determines that the 
        failure to repay the loan was due to hardship conditions or 
        circumstances beyond the control of the producer.''.
    (b) Marketing Loan Provisions.--Subsection (b) of such section is 
amended by striking ``for a crop'' and inserting ``for the 1991 through 
1993 crops''.
    (c) Loan Deficiency Payments.--Subsection (c) of such section is 
amended by striking ``1998'' and inserting ``1994''.
    (d) Payment Limitations.--Subsection (e) of such section is 
amended--
            (1) by striking subparagraphs (E) through (G);
            (2) by inserting ``and'' after the semicolon at the end of 
        subparagraph (C); and
            (3) by striking the semicolon at the end of subparagraph 
        (D) and inserting a period.
    (e) Termination.--Subsection (j) of such section is amended by 
striking ``1998'' and inserting ``1995''.
    (f) Conforming Amendments.--(1) Section 405(a) of the Agricultural 
Act of 1949 (7 U.S.C. 1425(a)) is amended by striking in the first 
sentence ``section 405A'' and inserting ``sections 207 and 405A''.
    (2) Section 405A(a) of the Agricultural Act of 1949 (7 U.S.C. 
1425a(a)) is amended by striking ``in each of the 1994'' and all that 
follows and inserting ``in the 1994 crop year.''.
    (g) Transition.--A provision of this section shall not affect the 
liability of any person under any provision of law as in effect before 
the date of the enactment of this Act.
                 TITLE VII--COMMERCE AND HOUSING CREDIT

            Subtitle A--Small Business Administration Reform

         CHAPTER 1--REORGANIZATION OF SMALL BUSINESS FUNCTIONS

SEC. 7001. TERMINATION OF SMALL BUSINESS ADMINISTRATION.

    The Small Business Administration shall terminate on December 31, 
1995.

SEC. 7002. ESTABLISHMENT OF OFFICE OF SMALL BUSINESS ADVOCACY IN 
              EXECUTIVE OFFICE OF THE PRESIDENT.

    (a) Establishment.--There is established in the Executive Office of 
the President an Office of Small Business Advocacy.
    (b) Director.--The Office shall be headed by a Director who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule in section 5315 of title 5, United States 
Code.
    (c) Functions of the Director.--The Director is authorized to carry 
out any of the functions assigned to the Chief Counsel of Advocacy of 
the Small Business Administration under the Small Business Act, as in 
effect on the day before the effective date of this subtitle.

SEC. 7003. CONFORMING AMENDMENTS TO TITLE 5, UNITED STATES CODE.

    (a) Section 5314.--Section 5314 of title 5, United States Code, is 
amended by striking ``Administrator of the Small Business 
Administration.''.
    (b) Section 5315.--Section 5315 of title 5, United States Code, is 
amended--
            (1) by striking ``Deputy Administrator of the Small 
        Business Administration.'';
            (2) by striking ``Chief Counsel for Advocacy, Small 
        Business Administration.'' and inserting ``Director of the 
        Office of Small Business Advocacy.''; and
            (3) by striking ``Inspector General, Small Business 
        Administration.''.
    (c) Section 5316.--Section 5316 of title 5, United States Code, is 
amended by striking ``Associate Administrators of the Small Business 
Administration (4).''.

                           CHAPTER 2--REPEALS

SEC. 7010. REPEAL OF SMALL BUSINESS ACT AND SMALL BUSINESS INVESTMENT 
              ACT OF 1958.

    Except as otherwise provided by this subtitle, the Small Business 
Act and the Small Business Investment Act of 1958 are repealed 
effective September 30, 1995.

SEC. 7011. CONTINUED EFFECTIVENESS OF CERTAIN FUNCTIONS.

    Notwithstanding section 7010 of this Act, the following provisions 
of the Small Business Act shall remain in effect after September 30, 
1995:
            (1) Section 3(a) (relating to the definition of ``small 
        business concern'').
            (2) Section 4(b)(2) (relating to maintenance of a small 
        business economic database).
            (3) Section 15 (relating to the award of Federal contracts 
        to small business concerns).

SEC. 7012. CONTINUED APPLICABILITY OF CERTAIN PROVISIONS.

    Notwithstanding section 7010 of this Act, the following provisions 
of the Small Business Act shall remain in effect after September 30, 
1995, insofar as such provisions apply to the functions referred to in 
section 7011 of this Act:
            (1) Section 5(b) (relating to general authorities to carry 
        out functions).
            (2) Section 16 (relating to penalties for prohibited acts).

                          CHAPTER 3--TRANSFERS

SEC. 7020. SIZE STANDARDS FOR SMALL BUSINESS CONCERNS; GOVERNMENT 
              PROCUREMENT PROGRAMS.

    There are transferred to the Director of the Office of Management 
of Budget all of the functions, powers, and duties vested in or 
delegated to the Administrator of the Small Business Administration 
under sections 3(a) and 15 of the Small Business Act.

SEC. 7021. MAINTENANCE OF NATIONAL SMALL BUSINESS ECONOMIC INDICES.

    There are transferred to the Director of the Office of Small 
Business Advocacy all of the functions, powers, and duties vested in or 
delegated to the Administrator of the Small Business Administration 
under section 4(b)(2) of the Small Business Act.

SEC. 7022. TRANSFER OF FINANCIAL OBLIGATIONS OWNED BY SMALL BUSINESS 
              ADMINISTRATION.

    (a) Transfers to Secretary of the Treasury.--There are transferred 
to the Secretary of the Treasury the loans, notes, bonds, debentures, 
securities, and other financial obligations owned by the Small Business 
Administration, together with all assets or other rights (including 
security interests) incident thereto, and all liabilities related 
thereto, and there are assigned to the Secretary the functions, powers, 
and abilities vested in or delegated to the Small Business 
Administration to manage, service, collect, sell, dispose of, or 
otherwise realize proceeds on obligations owed to the Small Business 
Administration under authority of the Small Business Act and the Small 
Business Investment Act of 1958 (including those assets purchased from 
the Federal Financing Bank pursuant to subsection (e) of this section).
    (b) Legal Rights, Obligations, Responsibilities, and Liabilities.--
The Secretary of the Treasury shall succeed to all rights and 
obligations of the Small Business Administration with respect to any 
and all legal rights, obligations, responsibilities, and liabilities 
arising out of the obligations described in subsections (a) and (e) of 
this section, including any outstanding guarantee of the Small Business 
Administration and any of its defenses against a claim under such 
guarantee, and shall have the same legal rights, obligations, 
responsibilities, and liabilities as the Small Business Administration 
had with respect to such obligations, and the regulation of brokers and 
dealers in such obligations.
    (c) Deposit of Amounts Received From Transferred Assets.--All 
amounts received by the Secretary of the Treasury with respect to any 
asset transferred to the Secretary pursuant to subsections (a) or (e) 
of this section shall be deposited in the Treasury as miscellaneous 
receipts.
    (d) Disposition of Assets.--
            (1) In general.--The Secretary of the Treasury is 
        authorized to dispose of any loan, debenture, or other asset 
        acquired by the Secretary pursuant to subsections (a) and (e) 
        of this section (including obligations formerly guaranteed 
        pursuant to the Small Business Act or the Small Business 
        Investment Act of 1958 that will be or have been acquired by 
        the Secretary) in the way, in amounts, at prices (for cash, 
        obligations, property, or combination of cash, obligations or 
        property), and on such conditions as the Secretary considers 
        advisable and in the public interest.
            (2) Limitation on applicability of certain laws.--Any 
        disposition by the Secretary of the Treasury of a financial 
        asset acquired by the Secretary under this subsection, 
        including a disposition through sale of the Federal 
        Government's interest in an asset or in a pool of assets, shall 
        not be subject to the provisions of the Federal Property and 
        Administrative Services Act of 1949 or the provisions of any 
        Federal or State securities law.
            (3) Prohibition on guarantees.--Any disposition of an asset 
        under this subsection shall be without any guarantee of the 
        United States or any agency or instrumentality thereof.
            (4) Transfer of information.--Notwithstanding any other 
        provision of law, including the Privacy Act of 1974, the 
        Secretary may transfer to a prospective purchaser or transferee 
        of an asset under this subsection such information as may be 
        incident to the disposition of the asset.
            (5) Limitation on applicability of certain filing 
        requirements.--Notwithstanding any State or local law or 
        regulation to the contrary, no filing or other action shall be 
        required in order to continue the perfected status of any 
        security interest transferred to the Secretary of the Treasury 
        which was held, on the day before the effective date of this 
        Act, by the Small Business Administration or any 
        representative, transferee, or assignee thereof.
            (6) Continued applicability of certain laws.--Sections 5(b) 
        and (e), 7(c)(1) and (2), 16, and 17 of the Small Business Act 
        shall remain in effect with respect to the assets and 
        guarantees transferred to the Secretary of the Treasury by this 
        subtitle as long as the Secretary shall retain any such asset 
        or guarantee.
    (e) Obligations Held by Federal Financing Bank.--The Secretary of 
the Treasury is authorized and directed, subject to funds being 
specifically appropriated for such purpose, to purchase from the 
Federal Financing Bank all notes, bonds, debentures, or other 
obligations held by the Federal Financing Bank that were, on the day 
before the effective date of this subtitle, guaranteed or otherwise 
backed by the Small Business Administration. Such purchases are to be 
made at prices determined by the Federal Financing Bank as if the 
obligations were repurchased by the respective obligors consistent with 
the terms of such obligations or such other agreements between the 
Small Business Administration and the Federal Financing Bank as are in 
effect on the day before the effective date of this subtitle.
    (f) Regulatory Authorities.--There are transferred to the Secretary 
of the Treasury the regulatory authorities with respect to small 
business investment companies and minority enterprise small business 
investment companies conferred by the Small Business Investment Act of 
1958; except that such regulatory authorities shall expire on--
            (1) for each loan, debenture, or equity security purchased 
        or guaranteed by the Small Business Administration, the date 
        such loan or debenture is disposed of by the Department of the 
        Treasury; or
            (2) for each small business investment company or minority 
        enterprise small business investment company whose loans, 
        debentures, or equity securities were purchased or guaranteed 
        by the Small Business Administration, the date on which the 
        last such loan, debenture or equity security of such company is 
        disposed of by the Secretary of the Treasury.

              CHAPTER 4--GENERAL ADMINISTRATIVE PROVISIONS

SEC. 7030. TRANSFER OF AUTHORITIES.

    To the extent necessary or appropriate, and consistent with the 
provisions of this subtitle, in order to perform a function transferred 
by this subtitle, the head of a department or agency may exercise any 
authority or part thereof which was provided by law to the Small 
Business Administration or the Administrator of the Small Business 
Administration.
SEC. 7031. ORGANIZATIONAL ENTITIES AND OFFICES.

    (a) In General.--The head of a department or agency is authorized 
to locate among the officers of the department or agency the functions 
transferred by this subtitle to the department or agency, and to 
establish, consolidate, alter, or discontinue such organizational 
entities or offices within the department or agency as may be necessary 
or appropriate.
    (b) Treatment During Transition.--In accordance with section 7040 
of this Act, and regulations issued thereunder, and until such time as 
the consolidation and termination of the transferred functions is 
completed, the head of a department or agency shall treat the 
organizational entities and functions transferred by this subtitle to 
their respective departments, as if they remained a part of the Small 
Business Administration.

SEC. 7032. DELEGATION OF FUNCTIONS.

    Except where otherwise expressly provided for by law, the head of a 
department or agency may delegate any of the functions now vested in a 
position transferred pursuant to this subtitle that relate to such a 
position to any of the officers and employees of the department or 
agency, and may authorize successive redelegation of those functions, 
as appropriate.

SEC. 7033. RULES AND REGULATIONS.

    The head of a department or agency is authorized to issue such 
rules and regulations as may be necessary or appropriate to carry out 
the functions, powers, and duties vested or transferred by this 
subtitle.

SEC. 7034. TRANSFER OF FUND ACCOUNTS.

    Any appropriations or fund accounts established to carry out the 
purposes of this subtitle shall be deemed to be successor accounts to 
those that existed in the Small Business Administration prior to the 
date of the enactment of this subtitle, and the balances of those prior 
accounts may be transferred and merged with any of the successor 
accounts so established.

      CHAPTER 5--TRANSITIONAL, SAVINGS, AND CONFORMING PROVISIONS

SEC. 7040. TRANSFERS.

    So much of the personnel (including Senior Executive Service and 
GS-16, GS-17, and GS-18 positions), positions, assets, liabilities, 
contracts, property, records, and unexpended balance of appropriations, 
authorizations, allocations, and other funds employed, held, used, 
arising from, available to or to be made available in connection with 
any functions or authority transferred by this subtitle, are 
transferred to the head of the appropriate agency, except that no such 
unexpended balances transferred shall be used for purposes other than 
those for which the appropriation was originally made.

SEC. 7041. DIRECTOR OF OFFICE OF MANAGEMENT AND BUDGET.

    The Director of the Office of Management and Budget, in 
consultation with the Administrator of the Small Business 
Administration, the Secretary of the Treasury, and other officials as 
appropriate, shall make such determinations as may be necessary with 
regard to the functions transferred by this subtitle, assets, 
liabilities, contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to or to be made available in connection 
with the functions transferred by this subtitle, that the Director 
considers necessary to accomplish the purposes of this subtitle.

SEC. 7042. SAVINGS PROVISIONS.

    (a) Existing Rules, Regulations, and Orders.--All orders, 
determinations, rules, regulations, permits, contracts, certificates, 
licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, any Federal department or 
        agency, or official thereof, or by a court of competent 
        jurisdiction, in the performance
         of functions which are transferred by this subtitle; and
            (2) that are in effect on September 30, 1995, shall 
        continue in effect according to their terms until modified, 
        terminated, superseded, set aside, or revoked in accordance 
        with law by the head of the department or agency to which such 
        function is transferred, or other authorized officials, a court 
        of competent jurisdiction, or by operation of law.
    (b) Administrative Proceedings.--
            (1) Pending proceedings not affected.--The provisions of 
        this subtitle shall not affect any proceedings or any 
        application for any license, permit, certificate, or financial 
        assistance pending on the effective date of this subtitle; but 
        such proceedings and applications, to the extent that they 
        relate to functions so transferred, shall be continued.
            (2) Effect of orders.--Orders shall be issued in such a 
        proceeding, appeals shall be taken therefrom, and payments 
        shall be made under such orders, as if this subtitle had not 
        been enacted, and orders issued in such a proceeding shall 
        continue in effect until modified, terminated, superseded, or 
        revoked by a duly authorized official, by a court of competent 
        jurisdiction, or by operation of law. Nothing in this 
        subsection prohibits the discontinuance or modification of such 
        a proceeding under the same terms and conditions and to the 
        same extent that such a proceeding could have been discontinued 
        or modified if this subtitle had not been enacted.
            (3) Issuance of regulations providing for transfer.--The 
        head of a department or agency may issue regulations providing 
        for the orderly transfer of such a proceeding to the department 
        or agency.
    (c) Pending Judicial Proceedings.--Except as provided in subsection 
(e) of this section--
            (1) the provisions of this subtitle do not affect a suit 
        commenced before this subtitle takes effect; and
            (2) in such a suit, proceedings shall be had, appeals 
        taken, and judgments rendered in the same manner and effect as 
        if this Act had not been enacted.
    (d) Causes of Action.--No suit, action, or other proceeding 
commenced by or against any officer in the officer's official capacity 
as an officer of any department or agency, functions of which are 
transferred by this subtitle, shall abate by reason of the enactment of 
this subtitle. No cause of action by or against any department or 
agency, functions of which are transferred by this subtitle, or by or 
against any officer thereof in the officer's official capacity shall 
abate by reason of the enactment of this subtitle. The authority to 
impose sanctions and grant waivers with respect to conflicts of 
interest occurring before the effective date of this subtitle, and the 
requirement to maintain records relating to the consideration of 
conflicts of interest before the effective date of this subtitle, do 
not abate by reason of the enactment of this subtitle.
    (e) Parties to a Suit.--If, before the date on which this subtitle 
takes effect, any department or agency, or any officer thereof in the 
officer's official capacity, is a party to a suit, and under this 
subtitle any function of that department, agency, or officer is 
transferred to the head of a department or agency, then the suit shall 
be continued with the head of the department or agency substituted.

SEC. 7043. COORDINATION OF TRANSFER ACTIVITIES.

    (a) Planning.--The Administrator of the Small Business 
Administration, the Secretary of the Treasury, and other officials as 
appropriate shall, beginning as soon as practicable after the date of 
the enactment of this subtitle, plan for the orderly transfer of 
functions and personnel pursuant to this subtitle.
    (b) Use of Personnel.--With the consent of the Administrator of the 
Small Business Administration, the head of each agency to which 
functions are transferred by this subtitle is authorized to use the 
services of such officers, employees, and other personnel of the Small 
Business Administration for such period of time as may reasonably be 
needed to facilitate the orderly transfer of functions pursuant to this 
subtitle.

SEC. 7044. REFERENCES.

    With respect to any functions transferred by this subtitle and 
exercised after the effective date of this subtitle, reference in any 
other Federal law to any department, commission, or agency or any 
officer or office the functions of which are so transferred shall be 
considered to refer to the official to whom they were transferred.

SEC. 7045. TRANSITIONAL PERIOD.

    During the period from September 30, 1995, until December 31, 1995, 
the Small Business Administration shall remain in existence, and there 
is authorized to be appropriated such sums as may be necessary for the 
purposes of winding up its affairs and advising the Secretary of the 
Treasury and other appropriate officials, insofar as they may request, 
in the exercise of the functions transferred by this subtitle. During 
this transitional period, the Small Business Administration may not 
engage in any program activities, either with respect to those 
functions that are transferred to other agencies or those that are 
terminated.

SEC. 7046. EFFECTIVE DATE.

    (a) In General.--Unless otherwise indicated, the provisions of this 
subtitle shall take effect on September 30, 1995.
    (b) Exceptions.--Notwithstanding subsection (a) of this section, at 
any time after the date of the enactment of this subtitle--
            (1) the officers provided for in section 7002 of this Act 
        may be nominated and appointed, as provided in such section; 
        and
            (2) the head of a department or agency to whom functions 
        are transferred under this subtitle may issue regulations under 
        section 7033 of this Act.
    (c) Termination of Presidential Appointees.--The positions of 
officers in the Small Business Administration who were appointed by the 
President, by and with the advice and consent of the Senate, shall 
terminate on October 31, 1995.
    (d) Temporary Appointments.--If any officer required by this 
subtitle to be appointed by and with the advice and consent of the 
Senate has not entered office on the effective date of this subtitle, 
the President may designate any officer whose appointment was required 
to be made by and with the advice and consent of the Senate, and who 
was such an officer immediately before the effective date of this 
subtitle, to act in the office until it is filled as provided in this 
subtitle. While so acting, such an officer shall be compensated at the 
rate prescribed by this subtitle for the office in which the officer 
acts.

                   Subtitle B--Housing Credit Reform

SEC. 7101. ELIMINATION OF FMHA DIRECT LOANS FOR SINGLE FAMILY HOMES.

    Section 502(a) of the Housing Act of 1949 (42 U.S.C. 1472(a)) is 
amended by adding at the end the following new paragraph:
    ``(4) Notwithstanding any other provision of this title, the 
Secretary may not make any direct loan under this section after 
September 30, 1995.''.

SEC. 7102. INCREASED FEES FOR FMHA SINGLE FAMILY HOUSING LOAN 
              GUARANTEES.

    Section 502(h)(7) of the Housing Act of 1949 (42 U.S.C. 1472(h)) is 
amended by striking ``1 percent'' and inserting ``2 percent''.

SEC. 7103. DELEGATION OF SINGLE FAMILY MORTGAGE INSURING AUTHORITY TO 
              MORTGAGEES AND SECONDARY MARKET ENTITIES.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.), is 
amended by adding at the end the following new section:
                   ``delegation of insuring authority

    ``Sec. 256. (a) Authority.--Notwithstanding any other provision of 
this title, the function of approving for insurance mortgages that 
involve property upon which there is located a dwelling designed 
principally for occupancy by 1 to 4 families shall be carried out only 
by qualified mortgagees and, to the extent that the Secretary enters 
into an agreement with the Federal National Mortgage Association or the 
Federal Home Loan Mortgage Corporation to carry out such function, by 
such Association or Corporation. The Secretary may not carry out the 
function of approving such mortgages for insurance.
    ``(b) Qualified Mortgagee.--For purposes of this section, the term 
`qualified mortgagee' means a mortgagee approved by the Secretary 
pursuant to this section as having the capability to carry out the 
function of insuring mortgages. In making such determination, the 
Secretary may consider the experience of the mortgagee, the past 
performance of the mortgagee, including the performance of the 
mortgagee under the direct endorsement program, the default rate of 
insured mortgages originated by the mortgagee compared to the default 
rate of all insured mortgages in comparable markets, and such other 
factors as the Secretary determines appropriate to minimize risk of 
loss to the insurance funds under this Act.
    ``(c) Enforcement of Insurance Requirements.--
            ``(1) In general.--If the Secretary determines that a 
        mortgage insured by a qualified mortgagee pursuant to this 
        section was not originated in accordance with the requirements 
        of this title and such other requirements as may be established 
        by the Secretary to carry out this section, and the Secretary 
        pays an insurance claim with respect to the mortgage within a 
        reasonable period specified by the Secretary, the Secretary may 
        require the qualified mortgagee approved under this section to 
        indemnify the Secretary for the loss.
            ``(2) Fraud or misrepresentation.--If fraud or 
        misrepresentation was involved in connection with the 
        origination of a mortgage referred to in paragraph (1), the 
        Secretary may require the qualified mortgagee to indemnify the 
        Secretary for the loss regardless of when an insurance claim is 
        paid.
    ``(d) Termination of Mortgagee's Authority.--If a qualified 
mortgagee violates the requirements and procedures established by the 
Secretary pursuant to this section or the Secretary determines that 
other good cause exists, the Secretary may terminate the mortgagee's 
status as a qualified mortgagee by providing notice of the termination 
to the mortgagee. Such a termination shall be effective upon receipt of 
the notice by the mortgagee or at a later date specified in the notice 
by the Secretary. A decision by the Secretary to terminate a 
mortgagee's status as a qualified mortgagee shall be final and 
conclusive and shall not be subject to judicial review.
    ``(e) Requirements and Procedures.--The Secretary shall issue 
regulations establishing appropriate requirements and procedures to 
carry out this section, including requirements and procedures governing 
the indemnification of the Secretary by qualified mortgagees.''.
  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.

    (a) Reestablishment.--The Department of Commerce is hereby 
redesignated as the Commerce Programs Resolution Agency, which shall be 
an independent agency in the executive branch of the Government.
    (b) Administrator.--
            (1) In general.--There shall be at the head of the Agency 
        an Administrator of the Agency, who shall be appointed by the 
        President, by and with the advice and consent of the Senate. 
        The Agency shall be administered under the supervision and 
        direction of the Administrator. The Administrator shall receive 
        compensation at the rate prescribed for level II of the 
        Executive Schedule under section 5313 of title 5, United States 
        Code.
            (2) Initial appointment of administrator.--Notwithstanding 
        any other provision of this chapter or any other law, the 
        President may, at any time after the date of the enactment of 
        this Act, appoint an individual to serve as Administrator of 
        the Commerce Programs Resolution Agency (who may be the 
        Secretary of Commerce), as such position is
         established under paragraph (1). An appointment under this 
paragraph may not be construed to affect the position of Secretary of 
Commerce or the authority of the Secretary before the effective date 
specified in section 7209(a).
    (c) Duties.--The Administrator shall be responsible for--
            (1) the administration and wind-up, during the wind-up 
        period, of all functions of the Administrator pursuant to 
        section 7202 and the other provisions of this title;
            (2) the administration and wind-up, during the wind-up 
        period, of any outstanding obligations of the Federal 
        Government under any programs terminated or repealed by this 
        title; and
            (3) taking such other actions as may be necessary, before 
        the termination date specified in section 7106(d), to wind up 
        any outstanding affairs of the Department of Commerce.

SEC. 7202. FUNCTIONS.

    Except to the extent a function is abolished or vested in another 
official or agency by this title, the Administrator shall perform all 
functions that, immediately before the effective date specified in 
section 7109(a), were functions of the Department of Commerce (or any 
office of the Department) or were authorized to be performed by the 
Secretary of Commerce or any other officer or employee of the 
Department in the capacity as such officer or employee.

SEC. 7203. DEPUTY ADMINISTRATOR.

    The Agency shall have a Deputy Administrator, who shall--
            (1) be appointed by and report to the Administrator; and
            (2) shall perform such functions as may be delegated by the 
        Administrator.
SEC. 7204. CONTINUATION OF SERVICE OF DEPARTMENT OFFICERS.

    (a) Continuation of Service of Secretary.--The individual serving 
on the effective date specified in section 7109(a) as the Secretary of 
Commerce may serve and act as Administrator until the date an 
individual is appointed under this title to the position of 
Administrator, or until the end of the 120-day period provided for in 
section 3348 of title 5, United States Code (relating to limitations on 
the period of time a vacancy may be filled temporarily), whichever is 
earlier.
    (b) Continuation of Service of Other Officers.--An individual 
serving on the effective date specified in section 7109(a) as an 
officer of the Department of Commerce other than the Secretary of 
Commerce may continue to serve and act in an equivalent capacity in the 
Agency until the date an individual is appointed under this title to 
the position of Administrator, or until the end of the 120-day period 
provided for in section 3348 of title 5, United States Code (relating 
to limitations on the period of time a vacancy may be filled 
temporarily) with respect to that appointment, whichever is earlier.
    (c) Compensation for Continued Service.--Any person--
            (1) who serves as the Administrator under subsection (a), 
        or
            (2) who serves under subsection (b),
after the effective date specified in section 7109(a) and before the 
first appointment of a person as Administrator shall continue to be 
compensated for so serving at the rate at which such person was 
compensated before such effective date.
SEC. 7205. REORGANIZATION.

    The Administrator may allocate or reallocate any function of the 
Agency pursuant to this title among the officers of the Agency, and may 
establish, consolidate, alter, or discontinue in the Commerce Programs 
Resolution Agency any organizational entities that were entities of the 
Department of Commerce, as the Administrator considers necessary or 
appropriate.

SEC. 7206. ABOLISHMENT OF COMMERCE PROGRAMS RESOLUTION AGENCY.

    (a) In General.--Effective on the termination date specified in 
subsection (d), the Commerce Programs Resolution Agency is abolished.
    (b) Abolition of Functions.--Except for functions transferred or 
otherwise continued by this title, all functions that, immediately 
before the termination date specified in subsection (d), were functions 
of the Commerce Programs Resolution Agency are abolished effective on 
that termination date.
    (c) Plan for Winding Up Affairs.--Not later than the effective date 
specified in section 7109(a), the President shall submit to the 
Congress a plan for winding up the affairs of the Agency in accordance 
with this title and by not later than the termination date specified in 
subsection (d).
    (d) Termination Date.--The termination date under this subsection 
is the date that is 3 years after the date of the enactment of this 
Act.

SEC. 7207. GAO REPORT.

    Not later than 180 days after the date of enactment of this Act, 
the Comptroller General of the United States shall submit to the 
Congress a report which shall include recommendations for the most 
efficient means of achieving, in accordance with this title--
            (1) the complete abolishment of the Department of Commerce; 
        and
            (2) the termination or transfer or other continuation of 
        the functions of the Department of Commerce.

SEC. 7208. CONFORMING AMENDMENTS.

    (a) Presidential Succession.--Section 19(d)(1) of title 3, United 
States Code, is amended by striking ``Secretary of Commerce,''.
    (b) Executive Departments.--Section 101 of title 5, United States 
Code, is amended by striking the following item:
            ``The Department of Commerce.''.
    (c) Secretary's Compensation.--Section 5312 of title 5, United 
States Code, is amended by striking the following item:
            ``Secretary of Commerce.''.
    (d) Compensation for Positions at Level III.--Section 5314 of title 
5, United States Code, is amended--
            (1) by striking the following item:
            ``Under Secretary of Commerce, Under Secretary of Commerce 
        for Economic Affairs, Under Secretary of Commerce for Export 
        Administration and Under Secretary of Commerce for Travel and 
        Tourism.'';
            (2) by striking the following item:
            ``Under Secretary of Commerce for Oceans and Atmosphere, 
        the incumbent of which also serves as Administrator of the 
        National Oceanic and Atmospheric Administration.''; and
            (3) by striking the following item:
            ``Under Secretary of Commerce for Technology.''.
    (e) Compensation for Positions at Level IV.--Section 5315 of title 
5, United States Code, is amended--
            (1) by striking the following items:
            ``Assistant Secretaries of Commerce (11).'';
            (2) by striking the following item:
            ``General Counsel of the Department of Commerce.'';
            (3) by striking the following item:
            ``Associate Secretary of Commerce for Oceans and 
        Atmosphere, the incumbent of which also serves as Deputy 
        Administrator of the National Oceanic and Atmospheric 
        Administration.'';
            (4) by striking the following item:
            ``Director, National Institute of Standards and Technology, 
        Department of Commerce.'';
            (5) by striking the following item:
            ``Inspector General, Department of Commerce.'';
            (6) by striking the following item:
            ``Chief Financial Officer, Department of Commerce.''; and
            (7) by striking the following item:
            ``Director, Bureau of the Census, Department of 
        Commerce.''.
    (f) Compensation for Positions at Level V.--Section 5316 of title 
5, United States Code, is amended--
            (1) by striking the following item:
            ``Director, United States Travel Service, Department of 
        Commerce.''; and
            (2) by striking the following item:
            ``National Export Expansion Coordinator, Department of 
        Commerce.''.
    (g) Inspector General Act of 1978.--The Inspector General Act of 
1978 (5 U.S.C. App.) is amended--
            (1) in section 9(a)(1), by striking subparagraph (B);
            (2) in section 11(1), by striking ``Commerce,''; and
            (3) in section 11(2), by striking ``Commerce,'';

SEC. 7209. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this chapter 
shall take effect on the date that is 6 months after the date of the 
enactment of this Act.
    (b) Provisions Effective on Date of Enactment.--The following 
provisions of this chapter shall take effect on the date of the 
enactment of this Act:
            (1) Section 7231(b).
            (2) Section 7236(c).
            (3) Section 7237.
CHAPTER 2--DISPOSITION OF PARTICULAR PROGRAMS, FUNCTIONS, AND AGENCIES 
                       OF DEPARTMENT OF COMMERCE
SEC. 7231. ECONOMIC DEVELOPMENT.

    (a) Terminated Functions.--The Public Works and Economic 
Development Act of 1965 (42 U.S.C. 3121 et seq.) is repealed.
    (b) Transfer of Financial Obligations Owed to the Department.--
There are transferred to the Secretary of the Treasury the loans, 
notes, bonds, debentures, securities, and other financial obligations 
owned by the Department of Commerce under the Public Works and Economic 
Development Act of 1965, together with all assets or other rights 
(including security interests) incident thereto, and all liabilities 
related thereto. There are assigned to the Secretary of the Treasury 
the functions, powers, and abilities vested in or delegated to the 
Secretary of Commerce or the Department of Commerce to manage, service, 
collect, sell, dispose of, or otherwise realize proceeds on obligations 
owed to the Department of Commerce under authority of such Act with 
respect to any loans, obligations, or guarantees made or issued by the 
Department of Commerce pursuant to such Act.
    (c) Audit.--Not later than 18 months after the date of the 
enactment of this Act, the Comptroller General shall conduct an audit 
of all grants made or issued by the Department of Commerce under the 
Public Works and Economic Development Act of 1965 in fiscal year 1995 
and all loans, obligations, and guarantees and shall transmit to 
Congress a report on the results of such audit.
SEC. 7232. EXPORT CONTROL FUNCTIONS.

    (a) Transfer to Secretary of State.--
            (1) In general.--Except as provided in this section, all 
        functions of the Secretary of Commerce, the Under Secretary of 
        Commerce for Export Administration, the 2 Assistant Secretaries 
        of Commerce appointed under section 15(a) of the Export 
        Administration Act of 1979 (50 U.S.C. 2414(a)), and the 
        Department of Commerce, on the day before the effective date 
        specified in section 7109(a), under the Export Administration 
        Act of 1979 are transferred to the Secretary of State.
            (2) Consultation with ustr.--The Secretary of State shall 
        consult with the United States Trade Representative with 
        respect to licensing decisions under the Export Administration 
        Act of 1979.
    (b) Short Supply Controls.--All functions of the Secretary of 
Commerce, on the day before the effective date specified in section 
7109(a), under section 7 of the Export Administration Act of 1979 (50 
U.S.C. 2406), and under all other provisions of that Act to the extent 
that such provisions apply to section 7, are transferred to the 
President.
    (c) Enforcement.--
            (1) General transfer.--All functions of the Secretary of 
        Commerce and the Department of Commerce, on the day before the 
        effective date specified in section 7109(a), under sections 
        11(c), 12, and 13 (c), (d), and (e) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2410(c), 2411, and 
        2412 (c), (d), and (e)) are transferred to the Secretary of the 
        Treasury.
            (2) Transfer of enforcement personnel.--Not more than 60 
        United States special agents of the Bureau of Export 
        Administration of the Department of Commerce who, on the day 
        before the effective date specified in section 7109(a), were 
        assigned to perform functions under section 12(a) of the Export 
        Administration Act of 1979 may be transferred to the Customs 
        Service to carry out functions transferred by paragraph (1). 
        The Director of the Office of Management and Budget shall 
        determine the special agents to be transferred under this 
        paragraph.
    (d) Anti-Boycott Compliance.--All functions of the Secretary of 
Commerce and the Department of Commerce, on the day before the 
effective date specified in section 7109(a), under section 8 of the 
Export Administration Act of 1979 (50 U.S.C. 2407), and under all other 
provisions of that Act to the extent that such provisions apply to 
section 8, are transferred to the Attorney General.
    (e) Termination of Office of Foreign Availability; Appointment of 
Industries Board.--
            (1) Termination of office.--(A) The Office of Foreign 
        Availability established under section 5(f)(6) of the Export 
        Administration Act of 1979 (50 U.S.C. 2404(f)(6)) is abolished.
            (2) Conforming amendment.--Section 5(f) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2404(f)) is amended 
        by striking paragraph (6).
            (3) Appointment of industries board.--The President shall 
        appoint an industries board, composed of representatives of 
        industries affected by matters relating to foreign availability 
        under the Export Administration Act of 1979, to advise the 
        Secretary of State with respect to such matters, except that no 
        Federal funds may be made available to the industries board to 
        carry out its functions.
    (f) Buying Power Maintenance Account.--The authority of the 
Secretary of Commerce under section 108 of title I of Public Law 100-
202 (101 Stat. 1329-7) to establish a Buying Power Maintenance account 
is transferred to the Secretary of State for purposes of carrying out 
functions under the Export Administration Act of 1979 that are 
transferred to the Secretary of State under this section.
    (g) Technical and Conforming Amendments.--
            (1) Section 15(a) of the Export Administration Act of 1979 
        (50 U.S.C. 2414(a)) is repealed.
            (2) The Office of the Under Secretary of Commerce for 
        Export Administration is abolished.

SEC. 7233. NATIONAL SECURITY FUNCTIONS.

    (a) Transfer of Functions.--Functions of the Secretary of Commerce 
immediately before the effective date specified in section 7109(a)--
            (1) under section 232 of the Trade Expansion Act of 1962 
        (19 U.S.C. 1862) are transferred to the International Trade 
        Commission;
            (2) under section 309 of the Defense Production Act of 1950 
        (50 U.S.C. App. 2099) are transferred to the Secretary of 
        Defense; and
            (3) under section 722 of the Defense Production Act of 1950 
        (50 U.S.C. App. 2171) are transferred to the Secretary of the 
        Treasury.
    (b) National Defense Technology and Industrial Base Council.--
Section 2502(b) of title 10, United States Code, is amended by striking 
paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs 
(3) and (4), respectively.
    (c) Appointment of Committees of Industry Representatives.--The 
President should appoint committees composed of representatives of 
appropriate industries to advise the National Security Council with 
respect to those matters affecting industry addressed by the Secretary 
of Commerce to the National Security Council before the effective date 
specified in section 7109(a).
SEC. 7234. INTERNATIONAL TRADE FUNCTIONS.

    (a) Tariff Act of 1930; Uruguay Round Agreements Act.--
            (1) Transfer to united states trade representative.--All 
        functions of the International Trade Administration of the 
        Department of Commerce, immediately before the effective date 
        specified in section 7109(a), under titles III and VII of the 
        Tariff Act of 1930, and all functions of the administering 
        authority or the Secretary of Commerce under the Uruguay Round 
        Agreements Act, are transferred to the United States Trade 
        Representative.
            (2) Conforming amendment.--Section 771(1) of the Tariff Act 
        of 1930 (19 U.S.C. 1677(1)) is amended by striking ``Secretary 
        of Commerce'' and inserting ``United States Trade 
        Representative''.
    (b) Foreign Trade Zones Board.--Subsection (b) of the first section 
of the Act of June 18, 1934 (commonly known as the ``Foreign Trade 
Zones Act'') (19 U.S.C. 81a(b)) is amended by striking ``Secretary of 
Commerce, who shall be chairman and executive officer of the Board, the 
Secretary of the Treasury'' and inserting ``Secretary of the Treasury, 
who shall be chairman and executive officer of the Board, the United 
States Trade Representative''.
    (c) United States and Foreign Commercial Service.--
            (1) Renaming and abolition of certain functions.--The 
        United States and Foreign Commercial Service shall, upon the 
        effective date specified in section 7109(a), be known as the 
        ``United States Foreign Commercial Service'' (hereafter in this 
        subsection referred to as the ``Commercial Service''). All 
        operations of the Commercial Service in the United States 
        (other than those performed at the headquarters office referred 
        to in section 2301(c) of the Export Enhancement Act of 1988 (15 
        U.S.C. 4721(c))) with respect to the foreign operations of the 
        Commercial Service) are abolished.
            (2) Transfer to ustr.--The Commercial Service and its 
        functions are transferred to the United States Trade 
        Representative. All functions performed immediately before the 
        effective date specified in section 7109(a) by the Secretary of 
        Commerce or the Department of Commerce with respect to the 
        Commercial Service are transferred to the United States Trade 
        Representative.
            (3) Director general.--(A) The head of the Commercial 
        Service shall, as of the effective date specified in section 
        7109(a), be the Director General of the United States Foreign 
        Commercial Service.
            (B) Section 5315 of title 5, United States Code, is amended 
        by striking ``Assistant Secretary of Commerce and Director 
        General of the United States and Foreign Commercial Service'' 
        and inserting ``Director General of the United States Foreign 
        Commercial Service.''.
            (C) The individual serving as Assistant Secretary of 
        Commerce and Director General of the United States and Foreign 
        Commercial Service immediately before the effective date 
        specified in section 7109(a) may serve as the Director General 
        of the United States Foreign Commercial Service on and after 
        such effective date until a successor has taken office. 
        Compensation for any service under this subparagraph shall be 
        at the rate at which the individual was compensated immediately 
        before the effective date specified in section 7109(a).
            (4) Transfer of commercial service officers.--The transfer 
        to the United States Trade Representative pursuant to this 
        section of any Commercial Service Officer serving immediately 
        before the effective date specified in section 7109(a) shall 
        not cause such officer to be reduced in rank, grade, or 
        compensation.
    (d) Export Promotion Programs.--
            (1) Transfer.--All export promotion programs (as defined in 
        section 201(d) of the Export Administration Amendments Act of 
        1985 (15 U.S.C. 4051(d))) carried out by the Secretary of 
        Commerce or the Department of Commerce immediately before the 
        effective date specified in section 7109(a) are transferred to 
        the United States Trade Representative.
            (2) Private funding.--With respect to any program 
        transferred under paragraph (1), no funds made available to the 
        United States Trade Representative may be used in carrying out 
        such program, but the United States Trade Representative may 
        require the persons to whom services are provided by the Office 
        of the United States Trade Representative under such program to 
        pay for such services.
    (e) Trade Information.--All functions of the Secretary of Commerce 
under the International Investment and Trade in Services Survey Act (22 
U.S.C. 3101 and following) are transferred to the Secretary of the 
Treasury.
    (f) International Economic Policy.--All functions performed by the 
Assistant Secretary of Commerce for International Economic Policy and 
the Office of International Economic Policy of the Department of 
Commerce immediately before the effective date specified in section 
7109(a) are abolished.
    (g) Functions With Respect to Textile Agreements.--
            (1) Transfer of functions.--Notwithstanding the provisions 
        of Executive Order 11651 and Executive Order 12475 (7 U.S.C. 
        1854 note), the functions of the Committee for the 
        Implementation of Textile Agreements (hereafter in this 
        subsection referred to as ``CITA'') are transferred as follows:
                    (A) All functions related to policy formulation for 
                textile and apparel trade, including the negotiation 
                and implementation of textile and apparel trade 
                agreements, and all related activities performed by 
                CITA immediately before the effective date specified in 
                section 7109(a), and not specified in paragraphs (2) 
                through (4), are transferred to the United States Trade 
                Representative.
                    (B) All functions related to economic analysis of 
                textile and apparel trade patterns, determination of 
                serious damage, or actual threat thereof, to domestic 
                United States industry and related safeguards matters, 
                including the transitional safeguard provisions under 
                Article 6 of the Agreement on Textiles and Clothing 
                referred to in section 101(d)(4) of the Uruguay Round 
                Agreements Act (19 U.S.C. 3511(d)(4)), and analysis of 
                the impact of foreign tariff and nontariff barriers on 
                textile and apparel trade, and all related activities 
                performed by CITA immediately before the effective date 
                specified in section 7109(a), are transferred to the 
                International Trade Commission.
                    (C) All functions related to the promotion and 
                foreign market expansion of United States textile and 
                apparel production are transferred to the United States 
                Foreign Commercial Service.
                    (D) All functions related to monitoring quota 
                utilization and enforcement, and actions to address the 
                circumvention of quotas, as described in the statement 
                of administrative action accompanying the Uruguay Round 
                Agreements (as defined in section 2 of the Uruguay 
                Round Agreements Act (19 U.S.C. 3501)), are transferred 
                to the Secretary of the Treasury.
            (2) Abolition of cita.--CITA is abolished.
    (h) Fair Trade in Auto Parts.--All functions of the Secretary of 
Commerce under the Fair Trade in Auto Parts Act of 1988 (15 U.S.C. 4701 
and following) are transferred to the International Trade Commission.
    (i) Other Trade Functions.--
            (1) Interagency trade organization.--The President shall 
        provide for the direct participation by representatives of 
        industry on the Interagency Trade Organization established 
        under section 242 of the Trade Expansion Act of 1962 (19 U.S.C. 
        1872), to carry out appropriate functions of the Secretary of 
        Commerce as a member of such organization before the effective 
        date specified in section 7109(a).
            (2) Export trading companies.--(A) The functions of the 
        Secretary of Commerce under the Export Trading Company Act of 
        1982 (15 U.S.C. 4001-4003), and the Office of Export Trade 
        established under section 104 of that Act, are abolished.
            (B) The functions of the Secretary of Commerce under title 
        III of the Act of October 8, 1982 (15 U.S.C. 4011 and 
        following), are transferred to the Secretary of the Treasury.
            (C) Conforming amendments.--(i) The Export Trading Company 
        Act of 1982 (15 U.S.C. 4001-4003) is repealed.
            (ii) The section heading for section 301 of the Act of 
        October 8, 1982 (15 U.S.C. 4011), is amended by striking 
        ``commerce'' and inserting ``treasury''.
            (iii) Section 311(7) of the Act of October 8, 1982 (15 
        U.S.C. 4021), is amended by striking ``Commerce'' and inserting 
        ``Treasury''.
    (j) Appointment of Industries Boards.--The President shall appoint 
industries boards, composed of representatives of industries in the 
private sector, to advise the Secretary of the Treasury and the United 
States Trade Representative with respect to functions transferred to 
them under this section.
    (k) Gifts and Bequests.--
            (1) In general.--The Secretary of State, the Secretary of 
        the Treasury, and the United States Trade Representative are 
        authorized to accept, hold, administer, and utilize gifts and 
        bequests of property, both real and personal, for the purpose 
        of aiding or facilitating the performance of functions 
        transferred to them under this section and section 7232. Gifts 
        and bequests of money and the proceeds from sales of other 
        property received as gifts or bequests shall be deposited in 
        the United States Treasury in a separate fund and shall be 
        disbursed on order of the Secretary of State, the Secretary of 
        the Treasury, or the United States Trade Representative. 
        Property accepted pursuant to this paragraph, and the proceeds 
        thereof, shall be used as nearly as possible in accordance with 
        the terms of the gift or bequest.
            (2) Tax treatment.--For the purpose of Federal income, 
        estate, and gift taxes, and State taxes, property accepted 
        under subsection (a) shall be considered a gift or bequest to 
        or for use of the United States.
            (3) Investment.--The Secretary of the Treasury may invest 
        and reinvest in securities of the United States or in 
        securities guaranteed as to principal and interest by the 
        United States any moneys contained in the fund provided for in 
        subsection (a). Income accruing from such securities, and from 
        any other property held by the Secretary of State, the 
        Secretary of the Treasury, or the United States Trade 
        Representative pursuant to subsection (a), shall be deposited 
        to the credit of the fund, and shall be disbursed upon order of 
        the Secretary of State, the Secretary of the Treasury, or the 
        United States Trade Representative.
    (l) Information Sharing.--It is the sense of the Congress that any 
department or agency of the United States that compiles information on 
international economics or trade make that information available to 
other departments and agencies performing functions relating to 
international trade.
    (m) Trade Adjustment Assistance for Firms.--Chapter 3 of title II 
of the Trade Act of 1974 (19 U.S.C. 2341 and following) and the items 
relating to such chapter in the table of contents for that Act, are 
repealed.

SEC. 7235. PATENT AND TRADEMARK OFFICE.

    (a) Transfer to Department of Justice.--Effective as of the date 
specified in section 7109(a)--
            (1) the Patent and Trademark Office shall be transferred to 
        the Department of Justice; and
            (2) all functions which, immediately before such date, are 
        functions of the Secretary of Commerce under title 35, United 
        States Code, or any other provision of law with respect to the 
        functions of the Patent and Trademark Office, are transferred 
        to the Attorney General.
    (b) Funding.--
            (1) Costs paid from fees.--All costs of the activities of 
        the Patent and Trademark Office shall be paid from fees paid to 
        the Office under title 35, United States Code, the Act of July 
        5, 1946 (commonly known as the ``Trademark Act of 1946'') (15 
        U.S.C. 1051 and following), section 10101 of the Omnibus Budget 
        Reconciliation Act of 1990 (35 U.S.C. 41 note), or other 
        provision of law.
            (2) Funds available without appropriation.--(A) Section 
        42(c) of title 35, United States Code, is amended by striking 
        ``to carry out, to the extent provided in appropriation Acts,'' 
        and inserting ``, without appropriation, to carry out''.
            (B) Section 10101(b)(2)(B) of the Omnibus Budget 
        Reconciliation Act of 1990 (35 U.S.C. 41 note) is amended by 
        striking ``to the extent provided in appropriation Acts'' and 
        inserting ``without appropriation''.
    (c) Adjustment of Fees.--Section 41(f) of title 31, United States 
Code, is amended to read as follows:
    ``(f) The Commissioner may adjust the fees established under this 
section on October 1 of each year to cover the estimated cost to the 
activities of the Office.''.
    (d) Service of Incumbents.--Those individuals serving as 
Commissioner of Patents and Trademarks, Deputy Commissioner of Patents 
and Trademarks, Assistant Commissioner of Patents, and Assistant 
Commissioner of Trademarks, immediately before the effective date 
specified in section 7109(a), may continue in such office on and after 
such effective date until a successor has taken office. Compensation 
for any service under this subsection shall be at the rate at which the 
individual was compensated immediately before the effective date 
specified in section 7109(a).
    (e) Rule of Construction.--For purposes of title III, the transfer 
of the Patent and Trademark Office to the Department of Justice under 
this section shall be treated as if it involved a transfer of functions 
from one office to another.
    (f) Technical and Conforming Amendments.--
            (1) Section 1 of title 35, United States Code, is amended 
        to read as follows:
``Sec. 1. Establishment
    ``The Patent and Trademark Office is an agency of the United States 
within the Department of Justice, where records, books, drawings, 
specifications, and other papers and things pertaining to patents and 
trademark registrations shall be kept and preserved, except as 
otherwise provided by law.''.
            (2) Title 35, United States Code, is amended by striking 
        ``Secretary of Commerce'' each place it appears and inserting 
        ``Attorney General''.
            (3) Section 3 of title 35, United States Code, is amended 
        by striking subsection (d).
            (4) Section 5316 of title 5, United States Code, is amended 
        by striking
            ``Commissioner of Patents, Department of Commerce.''
        and inserting
            ``Commissioner of Patents and Trademarks.''.
SEC. 7236. TECHNOLOGY ADMINISTRATION.

    (a) Technology Administration.--
            (1) General rule.--Except as otherwise provided in this 
        section, the Technology Administration shall be terminated on 
        the effective date specified in section 7233(a).
            (2) Office of technology policy.--The Office of Technology 
        Policy is hereby terminated.
    (b) National Institute of Standards and Technology.--
            (1) General rule.--Except as otherwise provided in this 
        subsection, the National Institute of Standards and Technology 
        (in this subsection referred to as the ``Institute'') shall be 
        transferred to the National Science Foundation.
            (2) Functions of director.--Except as otherwise provided in 
        this subsection, upon the transfer under paragraph (1), the 
        Director of the Institute shall perform all functions relating 
        to the Institute that, immediately before the effective date 
        specified in section 7233(a), were functions of the Secretary 
        of Commerce or the Under Secretary of Commerce for Technology, 
        including the administration of section 17 of the Stevenson-
        Wydler Technology Innovation Act of 1980.
            (3) Laboratories.--(A) The laboratories of the Institute 
        shall be transferred to the Commerce Programs Resolution 
        Agency.
            (B) The Commerce Programs Resolution Agency shall attempt 
        to sell the property of the laboratories of the Institute, 
        within 18 months after the effective date specified in section 
        7233(a), to a private sector entity intending to perform 
        substantially the same functions as were performed by the 
        laboratories of the Institute immediately before such effective 
        date.
            (C) If no offer to purchase property under subparagraph (B) 
        is received within the 18-month period described in such 
        subparagraph, the Commerce Programs Resolution Agency shall 
        submit a report to the Congress containing recommendations on 
        the appropriate disposition of the property and functions of 
        the laboratories of the Institute.
    (c) National Technical Information Service.--
            (1) Sale of property.--The Commerce Programs Resolution 
        Agency shall attempt to sell the property of the National 
        Technical Information Service, within 18 months after the 
        effective date specified in section 7233(a), to a private 
        sector entity intending to perform substantially the same 
        functions as were performed by the National Technical 
        Information Service immediately before such effective date.
            (2) Recommendations.--If no offer to purchase property 
        under paragraph (1) is received within the 18-month period 
        described in such paragraph, the Commerce Programs Resolution 
        Agency shall submit a report to the Congress containing 
        recommendations on the appropriate disposition of the property 
        and functions of the National Technical Information Service.
            (3) Funding.--No Federal funds may be appropriated for the 
        National Technical Information Service for any fiscal year 
        after fiscal year 1995.
    (d) Amendments.--
            (1) National institute of standards and technology act.--
        The National Institute of Standards and Technology Act (15 
        U.S.C. 271 et seq.) is amended--
                    (A) in section 2(b), by striking paragraph (1) and 
                redesignating paragraphs (2) through (11) as paragraphs 
                (1) through (10), respectively;
                    (B) in section 2(d), by striking ``, including the 
                programs established under sections 25, 26, and 28 of 
                this Act'';
                    (C) in section 10, by striking ``Advanced'' in both 
                the section heading and subsection (a), and inserting 
                in lieu thereof ``Standards and''; and
                    (D) by striking sections 24, 25, 26, and 28.
            (2) Stevenson-wydler technology innovation act of 1980.--
        The Stevenson-Wydler Technology Innovation Act of 1980 (15 
        U.S.C. 3701 et seq.) is amended--
                    (A) in section 3, by striking paragraph (2) and 
                redesignating paragraphs (3) through (5) as paragraphs 
                (2) through (4), respectively;
                    (B) in section 4, by striking paragraphs (1), (4), 
                and (13) and redesignating paragraphs (2), (3), (5), 
                (6), (7), (8), (9), (10), (11), and (12) as paragraphs 
                (1) through (10), respectively;
                    (C) by striking sections 5, 6, 7, 8, 9, and 10;
                    (D) in section 11--
                            (i) by striking ``, the Federal Laboratory 
                        Consortium for Technology Transfer,'' in 
                        subsection (c)(3);
                            (ii) by striking ``and the Federal 
                        Laboratory Consortium for Technology Transfer'' 
                        in subsection (d)(2);
                            (iii) by striking ``, and refer such 
                        requests'' and all that follows through 
                        ``available to the Service'' in subsection 
                        (d)(3); and
                            (iv) by striking subsection (e); and
                    (E) in section 17--
                            (i) by striking ``Subject to paragraph (2), 
                        separate'' and inserting in lieu thereof 
                        ``Separate'' in subsection (c)(1);
                            (ii) by striking paragraph (2) of 
                        subsection (c);
                            (iii) by redesignating paragraph (3) of 
                        subsection (c) as paragraph (2); and
                            (iv) by inserting ``administrative'' after 
                        ``funds to carry out'' in subsection (f).
SEC. 7237. REORGANIZATION OF THE BUREAU OF THE CENSUS.

    (a) In General.--Effective as of the date specified in section 
7233(a)--
            (1) the Bureau of the Census shall be transferred to the 
        Department of the Treasury; and
            (2) all functions which, immediately before such date, are 
        functions of the Secretary of Commerce under title 13, United 
        States Code, shall be transferred to the Secretary of the 
        Treasury.
    (b) Interim Service.--The individual serving as the Director of the 
Census immediately before the reorganization under this section takes 
effect may continue serving in that capacity until a successor has 
taken office. Compensation for any service under this subsection shall 
be at the rate at which such individual was compensated immediately 
before the effective date of the reorganization.
    (c) Sense of the Congress.--It is the sense of the Congress that 
the Bureau of the Census should--
            (1) make appropriate use of any authority afforded to it by 
        the Census Address List Improvement Act of 1994 (Public Law 
        103-430; 108 Stat. 4393), and take measures to ensure the 
        timely implementation of such Act; and
            (2) streamline census questionnaires to promote savings in 
        the collection and tabulation of data.
    (d) Amendments.--Effective as of the date specified in section 
7233(a)--
            (1) Transfer of the bureau to the department of the 
        treasury.--(A) Section 2 of title 13, United States Code, is 
        amended by striking ``is continued as'' through the period and 
        inserting ``is an agency within, and under the jurisdiction of, 
        the Department of the Treasury.''.
            (B) Subsection (e) of section 12 of the Act of February 14, 
        1903 (15 U.S.C. 1511(e)) is repealed.
            (2) Definition of secretary.--Title 13, United States Code, 
        is amended in section 1(2) by striking ``Secretary of 
        Commerce'' and inserting ``Secretary of the Treasury''.
            (3) References in title 13, united states code, to the 
        department of commerce.--Title 13, United States Code, is 
        amended in sections 4, 9(a), 23(b), 24(e), 44, 103, 132, 211, 
        213(b)(2), 221, 222, 223, 224, 225(a), and 241 by striking 
        ``Department of Commerce'' each place it appears and inserting 
        ``Department of the Treasury''.
            (4) Provisions relating to the secretary of the treasury.--
        (A) Section 302 of title 13, United States Code, is amended by 
        striking the last sentence thereof.
            (B) Section 303 of title 13, United States Code, and the 
        item relating to such section in the analysis for chapter 9 of 
        such title are repealed.
            (C) Section 304(a) of title 13, United States Code, is 
        amended--
                    (i) by striking ``Secretary of the Treasury'' each 
                place it appears and inserting ``Secretary''; and
                    (ii) by striking ``Secretary of Commerce'' and 
                inserting ``Secretary''.
            (D)(i) Section 401(a) of title 13, United States Code, is 
        amended by striking ``Secretary of Commerce'' and inserting 
        ``Secretary''.
            (ii) Section 8(e) of the Foreign Direct Investment and 
        International Financial Data Improvements Act of 1990 (22 
        U.S.C. 3144(e)) is amended by striking ``Secretary of 
        Commerce'' and inserting ``Secretary of the Treasury''.
            (iii) Section 401(a) of title 13, United States Code, is 
        amended by striking ``Department of Commerce'' and inserting 
        ``Federal Reserve System''.
            (5) Compensation for the position of director of the 
        census.--Section 5315 of title 5, United States Code, as 
        amended by paragraph (7) of section 7108(e), is further amended 
        by inserting (in lieu of the item struck by such paragraph) the 
        following new item:
            ``Director of the Census, Department of the Treasury.''.
            (6) Confidentiality.--Section 9 of title 13, United States 
        Code, is amended by adding at the end the following:
    ``(c)(1) Nothing in subsection (a)(3) shall be considered to permit 
the disclosure of any matter or information to an officer or employee 
of the Department of the Treasury who is not referred to in subchapter 
II if, immediately before the date specified in section 7233(a) of the 
Department of Commerce Dismantling Act, such disclosure (if then made 
by an officer or employee of the Department of Commerce) would have 
been impermissible under this section (as then in effect).
    ``(2) Paragraph (1) shall not apply with respect to any disclosure 
made to the Secretary.''.
    (e) Rule of Construction.--For purposes of title III, the 
reorganization of the Bureau of the Census under this section shall be 
treated as if it involved a transfer of functions from one office to 
another.
SEC. 7238. REORGANIZATION OF THE BUREAU OF ECONOMIC ANALYSIS.

    (a) In General.--Effective as of the date specified in section 
7233(a)--
            (1) the Bureau of Economic Analysis shall be transferred to 
        the Federal Reserve System; and
            (2) all functions which, immediately before such date, are 
        functions of the Secretary of Commerce with respect to the 
        Bureau of Economic Analysis shall be transferred to the 
        Chairman of the Board of Governors of the Federal Reserve 
        System.
    (b) Interim Service.--The individual serving as the Director of the 
Bureau of Economic Analysis immediately before the reorganization under 
this section takes effect may continue serving in that capacity until a 
successor has taken office. Compensation for any service under this 
subsection shall be at the rate at which such individual was 
compensated immediately before the effective date of the 
reorganization.
    (c) Reports.--Not later than 18 months after the date of the 
enactment of this Act, the Director of the Bureau of Economic Analysis 
shall submit to the Congress a written report on--
            (1) the availability of any private sector resources that 
        may be capable of performing any or all of the functions of the 
        Bureau of Economic Analysis, and the feasibility of having any 
        such functions so performed; and
            (2) the feasibility of implementing a system under which 
        fees may be assessed by the Bureau of Economic Analysis in 
        order to defray the costs of any services performed by the 
        Bureau of Economic Analysis, when such services are performed 
        other than on behalf of the Federal Government or an agency or 
        instrumentality thereof.
    (d) Rule of Construction.--For purposes of title III, the 
reorganization of the Bureau of Economic Analysis under this section 
shall be treated as if it involved a transfer of functions from one 
office to another.

SEC. 7239. TERMINATED FUNCTIONS OF NTIA.

    The following provisions of law are repealed:
            (1) Subpart A of part IV of title III of the Communications 
        Act of 1934 (47 U.S.C. 390 et seq.), relating to assistance for 
        public telecommunications facilities.
            (2) Subpart B of part IV of title III of the Communications 
        Act of 1934 (47 U.S.C. 394 et seq.), relating to the Endowment 
        for Children's Educational Television.
            (3) Subpart C of part IV of title III of the Communications 
        Act of 1934 (47 U.S.C. 395 et seq.), relating to 
        Telecommunications Demonstration grants.

SEC. 7240. TRANSFER OF SPECTRUM MANAGEMENT FUNCTIONS.

    There are transferred to the Chairman of the Federal Communications 
Commission all functions of the Secretary of Commerce, the Assistant 
Secretary of Commerce for Communications and Information, and the 
National Telecommunications and Information Administration under parts 
A and B of the National Telecommunication and Information 
Administration Organization Act.
SEC. 7241. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION.

    (a) Termination of Authority to Make Fisheries Grants.--No 
financial assistance may be provided under any of the following laws, 
except to the extent the provision of that assistance is a contractual 
obligation of the United States on the day before the effective date of 
this section:
            (1) Section 2 of the Act of August 11, 1939 (15 U.S.C. 
        713c-3), popularly known as the ``Saltonstall-Kennedy Act''.
            (2) Section 1 of the Act of September 2, 1960 (16 U.S.C. 
        753a).
            (3) The Antarctic Marine Living Resources Convention Act of 
        1984 (16 U.S.C. 2431 et seq.).
            (4) The Anadromous Fish Conservation Act (16 U.S.C. 757a et 
        seq.).
            (5) Provisions of the Magnuson Fishery Conservation and 
        Management Act (16 U.S.C. 1801 et seq.) and the Department of 
        Commerce Appropriation Act of 1994 that authorize assistance to 
        State fishery agencies to enhance their data collection and 
        analysis systems to respond to coastwise fisheries management 
        needs.
            (6) The Interjurisdictional Fisheries Act of 1986 (16 
        U.S.C. 4101 et seq.).
            (7) Provisions of the Fish and Wildlife Act of 1956 and the 
        Department of Commerce Appropriation Act of 1994 that authorize 
        assistance to States for a cooperative State and Federal 
        partnership to provide a continuing source of fisheries 
        statistics to support fisheries management in the States' 
        territorial waters and the United States exclusive economic 
        zone.
            (8) Provisions of the Fish and Wildlife Act of 1956 and the 
        Department of Commerce Appropriation Act of 1994 that authorize 
        assistance to States for a cooperative program which engages 
        State and
         Federal agencies in the coordinated collection, management, 
and dissemination of fishery-independent information on marine 
fisheries in support of State territorial waters and the United States 
exclusive economic zone fisheries management programs.
            (9) Provisions of the Act of May 11, 1938 (16 U.S.C. 756-
        757), popularly known as the Mitchell Act, and the Department 
        of Commerce Appropriation Act of 1994 that authorize assistance 
        to State fisheries agencies in the Pacific Northwest to protect 
        and enhance salmon and steelhead resources in the region.
            (10) Provisions of the Pacific Salmon Treaty Act of 1985 
        (16 U.S.C. 3631-3644) and the Department of Commerce 
        Appropriation Act of 1994 that authorize assistance to States 
        in fulfilling responsibilities under the Pacific Salmon Treaty 
        by providing administrative, management, and applied research 
        support to the States to meet the needs of the Pacific Salmon 
        Commission and international commitments under the treaty.
            (11) Provisions of the Marine Mammal Protection Act of 1972 
        (16 U.S.C. 1371-1384) and the Department of Commerce 
        Appropriation Act of 1994 which authorize assistance to State 
        agencies for the collection and analysis of information on 
        marine mammals that occur in the State waters and interact with 
        State managed fisheries.
            (12) Provisions of the Pacific Salmon Treaty Act of 1985 
        (16 U.S.C. 3631-3644) and the Department of Commerce 
        Appropriation Act of 1994 that--
                    (A) authorize assistance to States to assist in 
                fulfilling Federal responsibilities under the Pacific 
                Salmon Treaty by restoring Southeast Alaska salmon 
                harvests limited by the treaty and by restoring salmon 
                stocks as quickly as possible; and
                    (B) help implement a 1989 ``Understanding between 
                the United States and Canadian Sections of the Pacific 
                Salmon Commission Concerning Joint Enhancement of 
                Transboundary River Salmon Stocks''.
    (b) Termination of Fisheries Trade Promotion Program.--Section 211 
of the Act of December 22, 1989 (15 U.S.C. 1511b) is repealed.
    (c) Conforming Amendment To Terminate Fisheries Promotion and 
Development Transfers and Funds.--Section 2(b) of the Act of August 11, 
1939 (15 U.S.C. 713c-3), popularly known as the ``Saltonstall-Kennedy 
Act'', is repealed. Amounts remaining, on the effective date of this 
section, in the funds established under that section that are not 
required for the provision of financial assistance that is not 
otherwise terminated by this section shall revert to the general fund 
of the Treasury.
    (d) Termination of Authority To Guarantee Obligations for Fishing 
Vessel and Fishing Facility Construction, Etc.--No new guarantee of an 
obligation or commitment to guarantee an obligation under title XI of 
the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.) may be made 
under authority that was vested in the Secretary of Commerce on the day 
before the effective date of this section (relating to obligations for 
fishing vessels or fishing facilities), except to the extent the making 
of such a guarantee was a contractual obligation of the United States 
on the day before that effective date.
    (e) Termination of Compensation Under Fishermen's Protective Act of 
1967.--No compensation may be paid under section 10 of the Fishermen's 
Protective Act of 1967 (22 U.S.C. 1980), relating to compensation for 
damage, loss, or destruction of fishing vessels or fishing gear, except 
to the extent the compensation was awarded before the effective date of 
this section.
    (f) Termination of Compensation to Fishermen Under Outer 
Continental Shelf Lands Act Amendments of 1978.--No compensation may be 
paid under title IV of the Outer Continental Shelf Lands Act Amendments 
of 1978 (43 U.S.C. 1841 et seq.), except to the extent the compensation 
was awarded before the effective date of this section.
    (g) Termination of Miscellaneous Research Functions.--The following 
functions, as vested in personnel of the National Oceanic and 
Atmospheric Administration on the day before the effective date of this 
section, are terminated:
            (1) All observation and prediction functions relating to 
        pollution research.
            (2) All functions relating to estuarine and coastal 
        assessment research.
    (h) Termination of NOAA Corps.--
            (1) Termination.--The National Oceanic and Atmospheric 
        Administration Corps is terminated, and the assets thereof 
        shall be transferred to the Commerce Programs Resolution 
        Agency.
            (2) Disposition of assets.--The Administrator of the 
        Commerce Programs Resolution Agency shall attempt to sell the 
        assets of the National Oceanic and Atmospheric Administration 
        Corps, within 18 months after the effective date specified in 
        section 7233(a), to a private sector entity intending to 
        perform substantially the same functions as were performed by 
        the National Oceanic and Atmospheric Administration Corps 
        immediately before such effective date.
            (3) Report.--If no offer to purchase assets under paragraph 
        (2) is received within the 18-month period described in such 
        paragraph, the Commerce Programs Resolution Agency shall submit 
        a report to the Congress containing recommendations on the 
        appropriate disposition of the assets and functions of the 
        National Oceanic and Atmospheric Administration Corps.
    (i) Disposal of NOAA Fleet.--The Secretary of the Interior--
            (1) shall cease modernization of the National Oceanic and 
        Atmospheric Administration fleet of vessels and terminate all 
        new construction for that fleet;
            (2) shall promptly dispose of all assets comprising the 
        National Oceanic and Atmospheric Administration fleet; and
            (3) may not purchase any vessels for the National Oceanic 
        and Atmospheric Administration.
    (j) Office of Oceanic and Atmospheric Research.--(1) Except as 
otherwise provided in paragraph (2) or (3), the Office of Oceanic and 
Atmospheric Research shall be terminated.
    (2) Functions relating to weather research of the Office of Oceanic 
and Atmospheric Research shall be transferred to the National Weather 
Service.
    (3)(A) The laboratories of the Office of Oceanic and Atmospheric 
Research shall be transferred to the Commerce Programs Resolution 
Agency.
    (B) The Commerce Programs Resolution Agency shall attempt to sell 
the property of the laboratories of the Office of Oceanic and 
Atmospheric Research, within 18 months after the effective date 
specified in section 7233(a), to a private sector entity intending to 
perform substantially the same functions as were performed by the 
laboratories of the Office of Oceanic and Atmospheric Research 
immediately before such effective date.
    (C) If no offer to purchase property under subparagraph (B) is 
received within the 18-month period described in such subparagraph, the 
Commerce Programs Resolution Agency shall transfer the remaining 
laboratories to the Department of the Interior, which shall submit a 
report to the Congress containing recommendations on the appropriate 
disposition of the property and functions of such laboratories.
    (k) Nautical and Aeronautical Charting.--(1) The nautical and 
aeronautical charting functions of the National Oceanic and Atmospheric 
Administration shall be transferred to the Defense Mapping Agency.
    (2) The Defense Mapping Agency shall terminate any functions 
transferred to it under paragraph (1) that are performed by the private 
sector.
    (l) NESDIS.--(1)(A) The National Environmental Satellite, Data, and 
Information System Data Centers shall be transferred to the Commerce 
Programs Resolution Agency.
    (B) The Commerce Programs Resolution Agency shall attempt to sell 
the property of the National Environmental Satellite, Data, and 
Information System Data Centers, within 18 months after the effective 
date specified in section 7233(a), to a private sector entity intending 
to perform substantially the same functions as were performed by the 
National Environmental Satellite, Data, and Information System Data 
Centers immediately before such effective date.
    (C) If no offer to purchase property under subparagraph (B) is 
received within the 18-month period described in such subparagraph, the 
Commerce Programs Resolution Agency shall submit a report to the 
Congress containing recommendations on the appropriate disposition of 
the property and functions of the National Environmental Satellite, 
Data, and Information System Data Centers.
    (2) Functions related to weather satellites of the National 
Environmental Satellite, Data, and Information System shall be 
transferred to the National Weather Service.
    (m) National Weather Service.--(1) The National Weather Service is 
hereby transferred to the Department of the Interior.
    (2)(A) The National Weather Service shall terminate its specialized 
agricultural, Marine Radiofax, and forestry weather services, and its 
Regional Climate Centers.
    (B) The National Weather Service may terminate any other 
specialized weather services not required by law to be performed.
    (n) National Marine Fisheries Service.--
            (1) Transfer of enforcement functions.--There are 
        transferred to the Secretary of Transportation all functions 
        relating to law enforcement that on the day before the 
        effective date of this section were authorized to be performed 
        by the National Marine Fisheries Service.
            (2) Transfer of science functions.----There are transferred 
        to the Director of the United States Fish and Wildlife Service 
        all functions relating to science that on the day before the 
        effective date of this section were authorized to be performed 
        by the National Marine Fisheries Service.
            (3) Transfer of seafood inspection functions.--There are 
        transferred to the Secretary of Agriculture all functions 
        relating to seafood inspection that on the day before the 
        effective date of this section were authorized to be performed 
        by the National Marine Fisheries Service.
    (o) National Ocean Service.--
            (1) Transfer of geodesy functions.--There are transferred 
        to the Director of the United States Geological Survey all 
        functions relating to geodesy that on the day before the 
        effective date of this section were authorized to be performed 
        by the National Ocean Service.
            (2) Transfer of marine and estuarine sanctuary functions.--
        There are transferred to the Secretary of the Interior all 
        functions relating to marine and estuarine sanctuaries that on 
        the day before the effective date of this section were 
        authorized to be performed by the National Ocean Service.
    (p) Environmental Research Laboratories.--
            (1) Transfer.--The environmental research laboratories of 
        the National Oceanic and Atmospheric Administration (other than 
        laboratories of the Office of Oceanic and Atmospheric Research, 
        referred to in subsection (j)) shall be transferred to the 
        Commerce Programs Resolution Agency.
            (2) Disposal.--The Commerce Programs Resolution Agency 
        shall attempt to sell the property of the laboratories 
        transferred under paragraph (1), within 18 months after the 
        effective date specified in section 7233(a), to a private 
        sector entity intending to perform substantially the same 
        functions as were performed by the laboratories before such 
        effective date.
            (3) Report.--If no offer to purchase property under 
        paragraph (2) is received within the 18-month period described 
        in such paragraph, the Commerce Programs Resolution Agency 
        shall submit a report to the Congress containing 
        recommendations on the appropriate disposition of the property 
        and functions of the laboratories transferred under paragraph 
        (1).

SEC. 7242. MISCELLANEOUS ABOLISHMENTS.

    The following agencies and programs of the Department of Commerce 
are abolished, and the functions of those agencies or programs are 
abolished except to the extent otherwise provided in this title:
            (1) The Economic Development Administration.
            (2) The Minority Business Development Administration.
            (3) The United States Travel and Tourism Administration.
            (4) The National Telecommunications and Information 
        Administration.
            (5) The Advanced Technology Program under section 28 of the 
        National Institute of Standards and Technology Act (15 U.S.C. 
        278n).
            (6) The Manufacturing Extension Programs under sections 25 
        and 26 of the National Institute of Standards and Technology 
        Act (15 U.S.C. 278k and 278l).

SEC. 7243. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this title 
shall take effect on the effective date specified in section 7109(a).
    (b) Provisions Effective on Date of Enactment.--The following 
provisions of this chapter shall take effect on the date of the 
enactment of this Act:
            (1) Section 7201.
            (2) Section 7206 (a)(2) and (d).
            (3) Section 7232.

SEC. 7244. SENSE OF CONGRESS REGARDING USER FEES.

    It is the sense of the Congress that the head of each agency that 
performs a function vested in the agency by this title should, wherever 
feasible, explore and implement user fees for the provision of services 
in the performance of that function, to offset operating costs.

                  CHAPTER 3--MISCELLANEOUS PROVISIONS

SEC. 7251. REFERENCES.

    Any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to an office from which a function is transferred by this 
title--
            (1) to the Secretary of Commerce or an officer of the 
        Department of Commerce, is deemed to refer to the head of the 
        department or office to which such function is transferred; or
            (2) to the Department of Commerce or an agency in the 
        Department of Commerce is deemed to refer to the department or 
        office to which such function is transferred.

SEC. 7252. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a 
function is transferred by this title may, for purposes of performing 
the function, exercise all authorities under any other provision of law 
that were available with respect to the performance of that function to 
the official responsible for the performance of the function 
immediately before the effective date of the transfer of the function 
under this title.

SEC. 7253. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, the Secretary of Commerce, 
        any officer or employee of any office transferred by this 
        title, or any other Government official, or by a court of 
        competent jurisdiction, in the performance of any function that 
        is transferred by this title, and
            (2) that are in effect on the effective date of such 
        transfer (or become effective after such date pursuant to their 
        terms as in effect on such effective date),
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, any other authorized official, a court of competent 
jurisdiction, or operation of law.
    (b) Proceedings.--This title shall not affect any proceedings or 
any application for any benefits, service, license, permit, 
certificate, or financial assistance pending on the date of the 
enactment of this Act before an office transferred by this title, but 
such proceedings and applications shall be continued. Orders shall be 
issued in such proceedings, appeals shall be taken therefrom, and 
payments shall be made pursuant to such orders, as if this title had 
not been enacted, and orders issued in any such proceeding shall 
continue in effect until modified, terminated, superseded, or revoked 
by a duly authorized official, by a court of competent jurisdiction, or 
by operation of law. Nothing in this subsection shall be considered to 
prohibit the discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent that such 
proceeding could have been discontinued or modified if this title had 
not been enacted.
    (c) Suits.--This title shall not affect suits commenced before the 
date of the enactment of this Act, and in all such suits, proceeding 
shall be had, appeals taken, and judgments rendered in the same manner 
and with the same effect as if this title had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Department of Commerce or the Secretary of 
Commerce, or by or against any individual in the official capacity of 
such individual as an officer or employee of an office transferred by 
this title, shall abate by reason of the enactment of this title.
    (e) Continuance of Suits.--If any officer of the Department of 
Commerce or the Commerce Programs Resolution Agency in the official 
capacity of such officer is party to a suit with respect to a function 
of the officer, and under this title such function is transferred to 
any other officer or office, then such suit shall be continued with the 
other officer or the head of such other office, as applicable, 
substituted or added as a party.

SEC. 7254. TRANSFER OF ASSETS.

    Except as otherwise provided in this title, so much of the 
personnel, property, records, and unexpended balances of 
appropriations, allocations, and other funds employed, used, held, 
available, or to be made available in connection with a function 
transferred to an official or agency by this title shall be available 
to the official or the head of that agency, respectively, at such time 
or times as the Director of the Office of Management and Budget directs 
for use in connection with the functions transferred.

SEC. 7255. DELEGATION AND ASSIGNMENT.

    Except as otherwise expressly prohibited by law or otherwise 
provided in this title, an official to whom functions are transferred 
under this title (including the head of any office to which functions 
are transferred under this title) may delegate any of the functions so 
transferred to such officers and employees of the office of the 
official as the official may designate, and may authorize successive 
redelegations of such functions as may be necessary or appropriate. No 
delegation of functions under this section or under any other provision 
of this title shall relieve the official to whom a function is 
transferred under this title of responsibility for the administration 
of the function.

SEC. 7256. AUTHORITY OF ADMINISTRATOR WITH RESPECT TO FUNCTIONS 
              TRANSFERRED.

    (a) Determinations.--If necessary, the Administrator shall make any 
determination of the functions that are transferred under this title.
    (b) Incidental Transfers.--The Administrator, at such time or times 
as the Administrator shall provide, may make such determinations as may 
be necessary with regard to the functions transferred by this title, 
and to make such additional incidental dispositions of personnel, 
assets, liabilities, grants, contracts, property, records, and 
unexpended balances of appropriations, authorizations, allocations, and 
other funds held, used, arising from, available to, or to be made 
available in connection with such functions, as may be necessary to 
carry out the provisions of this title. The Administrator shall provide 
for the termination of the affairs of all entities terminated by this 
title and for such further measures and dispositions as may be 
necessary to effectuate the purposes of this title.

SEC. 7257. PROPOSED CHANGES IN LAW.

    Not later than one year after the date of the enactment of this 
Act, the Director of the Office of Management and Budget shall submit 
to the Congress a description of any changes in Federal law necessary 
to reflect abolishments, transfers, terminations, and disposals under 
this title.

SEC. 7258. CERTAIN VESTING OF FUNCTIONS CONSIDERED TRANSFERS.

    For purposes of this title, the vesting of a function in a 
department or office pursuant to reestablishment of an office shall be 
considered to be the transfer of the function.

SEC. 7259. DEFINITIONS.

    For purposes of this title, the following definitions apply:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Commerce Programs Resolution Agency.
            (2) Agency.--The term ``Agency'' means the Commerce 
        Programs Resolution Agency.
            (3) Function.--The term ``function'' includes any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        activity, or program.
            (4) Office.--The term ``office'' includes any office, 
        administration, agency, bureau, institute, council, unit, 
        organizational entity, or component thereof.
            (5) Wind-up period.--The term ``wind-up period'' means the 
        period beginning on the effective date specified in section 
        109(a) and ending on the termination date specified in section 
        106(d).

SEC. 7260. LIMITATION ON ANNUAL EXPENDITURES FOR CONTINUED FUNCTIONS.

    The amount expended by the United States each fiscal year for 
performance of a function which immediately before the effective date 
of this section was authorized to be performed by an agency, officer, 
or employee of the Department of Commerce may not exceed 75 percent of 
the total amount expended by the United States for performance of that 
function during fiscal year 1994.
               Subtitle D--Banking and Insurance Reforms
                  CHAPTER 1--BANKING EXAMINATION FEES
SEC. 7301. BANK EXAMINATION FEES.

    (a) FDIC Examination Fees.--Section 10(e)(1) of the Federal Deposit 
Insurance Act (12 U.S.C. 1820(e)(1)) is amended to read as follows:
            ``(1) In general.--
                    ``(A) Regulatory examinations.--The cost of 
                conducting any examination under subsection (b)(2) of 
                an insured depository institution described in 
                subparagraph (A) of such subsection shall be assessed 
                by the Corporation against the institution in an amount 
                sufficient to meet the Corporation's expenses in 
                carrying out the examination.
                    ``(B) Insurance examinations.--The cost of 
                conducting any examination of a depository institution 
                under subsection (b)(2) or (b)(3), other than an 
                examination to which subparagraph (A) applies, may be 
                assessed by the Corporation against the institution to 
                meet the Corporation's expenses in carrying out the 
                examination.''.
    (b) Federal Reserve Board Examination Fees.--The 2d sentence of the 
8th undesignated paragraph of section 9 of the Federal Reserve Act (12 
U.S.C. 326) is amended--
            (1) by striking ``may, in the discretion of the Board of 
        Governors of the Federal Reserve System, be assessed'' and 
        inserting ``shall be assessed''; and
            (2) by striking ``and, when so assessed, shall be paid'' 
        and inserting ``and shall be paid''.
    (c) Technical and Conforming Amendment.--Section 10(b)(2) of the 
Federal Deposit Insurance Act (12 U.S.C. 1820(b)(2)) is amended by 
inserting ``an examination is required under subsection (d)(1) or'' 
after ``whenever''.

                  Subchapter A--Federal Banking Agency

SEC. 7311. ESTABLISHMENT.

    (a) In General.--There is hereby established an agency to be known 
as the Federal Banking Agency (hereafter in this chapter referred to as 
the ``Agency'') as an independent establishment in the executive 
branch.
    (b) Insured Depository Institution Defined.--For purposes of this 
chapter, the term ``insured depository institution'' has the meaning 
given to such term in section 3(c) of the Federal Deposit Insurance 
Act.

SEC. 7312. MANAGEMENT.

    (a) Board of Directors.--
            (1) In general.--The Agency shall be under the management 
        of a board of directors (hereafter in this chapter referred to 
        as the ``Board'') composed of 7 members--
                    (A) 1 of whom shall be the Secretary of the 
                Treasury;
                    (B) 1 of whom shall be the Chairman of the Board of 
                Governors of the Federal Reserve System;
                    (C) 1 of whom shall be the Chairperson of the Board 
                of Directors of the Federal Deposit Insurance 
                Corporation; and
                    (D) 4 of whom shall be appointed by the President, 
                by and with the advice and consent of the Senate.
            (2) Political affiliation.--Not more than 2 members of the 
        Board appointed under paragraph (1)(D) may be members of the 
        same political party.
    (b) Chairperson and Vice Chairperson.--
            (1) Chairperson.--1 of the members of the Board appointed 
        under subsection (a)(1)(D) shall be designated by the 
        President, by and with the advice and consent of the Senate, to 
        serve as Chairperson of the Board.
            (2) Vice chairperson.--1 of the members of the Board 
        appointed under subsection (a)(1)(D) shall be designated by the 
        President, by and with the advice and consent of the Senate, to 
        serve as Vice Chairperson of the Board.
            (3) Acting chairperson.--In the event of a vacancy in the 
        position of Chairperson of the Board, or during the absence or 
        disability of the Chairperson, the Vice Chairperson shall act 
        as Chairperson.
    (c) Terms.--
            (1) 5-year terms.--Except as provided in paragraph (4), 
        each member appointed under subsection (a)(1)(D) shall be 
        appointed for a term of 5 years.
            (2) Interim appointments.--Any member appointed to fill a 
        vacancy occurring before the end of the term to which such 
        member's predecessor was appointed shall be appointed only for 
        the remainder of such term.
            (3) Continuation of service.--Any member may continue to 
        serve after the expiration of the term of office to which such 
        member was appointed until a successor has been appointed and 
        qualified.
            (4) Staggered for 1st appointees.--Of the members first 
        appointed to the Board under subsection (a)(1)(D)--
                    (A) 1 shall be appointed for a term of 5 years;
                    (B) 1 shall be appointed for a term of 4 years;
                    (C) 1 shall be appointed for a term of 3 years; and
                    (D) 1 shall be appointed for a term of 2 years,
        as designated by the President at the time of the appointment.
    (d) Vacancy.--Any vacancy on the Board shall be filled in the 
manner in which the original appointment was made.
    (e) Ineligibility for Other Offices.--
            (1) Restrictions on employment by depository 
        institutions.--No member of the Board may hold any office, 
        position, or employment in any insured depository institution 
        or any affiliate (as defined in section 2(k) of the Bank 
        Holding Company Act of 1956) of an insured depository 
        institution during--
                    (A) the time such member is in office; and
                    (B) the 2-year period beginning on the date such 
                member ceases to serve on the Board.
            (2) Other restrictions during service as member.--No member 
        of the Board may--
                    (A) be an officer or director of any Federal 
                reserve bank or Federal home loan bank; or
                    (B) hold any stock in any insured depository 
                institution or any affiliate (as defined in section 
                2(k) of the Bank Holding Company Act of 1956) of an 
                insured depository institution.
            (3) Certification.--Upon taking office, each member of the 
        Board shall file a certification under oath with the secretary 
        of the Board that such member has complied with the 
        requirements of this subsection.

SEC. 7313. POWERS AND DUTIES.

    (a) Regulation of National Banks.--
            (1) Transfer to agency.--All functions of the Comptroller 
        of the Currency are hereby transferred to the Agency.
            (2) Agency powers.--The Agency shall have all powers, 
        duties, and authority which, before the date of the enactment 
        of this Act, were vested in the Comptroller of the Currency 
        under the following provisions of law to the extent such 
        provisions apply to national banks or the office, officers, or 
        employees of the Comptroller of the Currency:
                    (A) Chapter nine of title VII and title LXII of the 
                Revised Statutes.
                    (B) The Bank Conservation Act.
                    (C) The Federal Deposit Insurance Act.
                    (D) The National Bank Receivership Act.
                    (E) The Act entitled ``An Act additional to the Act 
                entitled `An Act to provide a national currency secured 
                by a pledge of United States bonds and to provide for 
                the circulation and redemption thereof,' passed June 
                third, eighteen hundred and sixty four.'' and approved 
                March 29, 1886.
                    (F) The Act entitled ``An Act to provide for the 
                conversion of national banking associations into and 
                their merger or consolidation with State banks, and for 
                other purposes.'' and approved August 17, 1950.
                    (G) The National Bank Consolidation and Merger Act.
                    (H) The International Banking Act of 1978.
                    (I) The Farm Credit Act of 1971.
                    (J) Any title of the Consumer Credit Protection 
                Act.
                    (K) The Bank Protection Act of 1968.
                    (L) The Home Mortgage Disclosure Act of 1975.
                    (M) The Community Reinvestment Act of 1977.
                    (N) The Depository Institution Management 
                Interlocks Act.
                    (O) Sections 2, 4, 19(h), 22(g), 24(a), 24A, 25, 
                25A, and 29 of the Federal Reserve Act.
                    (P) The Bank Service Corporation Act.
                    (Q) The Federal Financial Institutions Examination 
                Council Act of 1978.
                    (R) The Right to Financial Privacy Act of 1978.
                    (S) The Alternative Mortgage Transaction Parity Act 
                of 1982.
                    (T) The International Lending Supervision Act of 
                1983.
                    (U) The Expedited Funds Availability Act.
                    (V) The Financial Institutions Reform, Recovery, 
                and Enforcement Act of 1989.
                    (W) The Federal Deposit Insurance Corporation 
                Improvement Act of 1991.
                    (X) The Riegle-Neal Interstate Banking and 
                Branching Efficiency Act of 1994.
                    (Y) The Riegle Community Development and Regulatory 
                Improvement Act of 1994.
                    (Z) The Truth in Savings Act.
    (b) Regulation of Member Banks, Bank Holding Companies and 
Affiliates, and Various International Banking Entities.--
            (1) Transfer to agency.--All functions of the Board of 
        Governors of the Federal Reserve System (and any Federal 
        reserve bank) relating to--
                    (A) the supervision and regulation of banks which 
                are members of the Federal Reserve System;
                    (B) the supervision and regulation of bank holding 
                companies and any subsidiary or affiliate of a bank 
                holding company which is not a depository institution;
                    (C) the supervision and regulation of companies 
                operating under section 25 or 25A of the Federal 
                Reserve Act or the International Banking Act of 1978;
                    (D) the supervision and regulation of any company 
                which is subject to supervision and regulation by the 
                Board of Governors under any title of the Consumer 
                Protection Act; and
                    (E) the supervision and regulation of any foreign 
                bank, any branch or agency of a foreign bank, and any 
                commercial lending company controlled by a foreign 
                bank,
        are hereby transferred to the Agency.
            (2) Agency powers.--The Agency shall have all powers, 
        duties, and authority which, before the date of the enactment 
        of this Act, were vested in the Board of Governors of the 
        Federal Reserve System under the following provisions of law to 
        the extent such provisions apply to banks or other companies 
        described in any subparagraph of paragraph (1):
                    (A) Sections 6 (other than the 1st and 2d 
                paragraphs), 9, 19(h), 22(g), 22(h), 23A, 23B, 24(a), 
                24A, 25, 25A, and 29 of the Federal Reserve Act.
                    (B) The Bank Holding Company Act of 1956.
                    (C) The Bank Holding Company Act Amendments of 
                1970.
                    (D) The International Banking Act of 1978.
                    (E) Sections 20, 31, and 32 of the National Banking 
                Act of 1933.
                    (F) The Federal Deposit Insurance Act.
                    (G) Any title of the Consumer Credit Protection 
                Act.
                    (H) The Bank Protection Act of 1968.
                    (I) The Home Mortgage Disclosure Act of 1975.
                    (J) The Community Reinvestment Act of 1977.
                    (K) The Depository Institution Management 
                Interlocks Act.
                    (L) The Bank Service Corporation Act.
                    (M) The Federal Financial Institutions Examination 
                Council Act of 1978.
                    (N) The Right to Financial Privacy Act of 1978.
                    (O) The Alternative Mortgage Transaction Parity Act 
                of 1982.
                    (P) The International Lending Supervision Act of 
                1983.
                    (Q) The Expedited Funds Availability Act.
                    (R) The Financial Institutions Reform, Recovery, 
                and Enforcement Act of 1989.
                    (S) The Federal Deposit Insurance Corporation 
                Improvement Act of 1991.
                    (T) The Riegle-Neal Interstate Banking and 
                Branching Efficiency Act of 1994.
                    (U) The Riegle Community Development and Regulatory 
                Improvement Act of 1994.
                    (V) The Truth in Savings Act.
    (c) Regulation of Savings Associations and Savings and Loan Holding 
Companies.--
            (1) Transfer to agency.--All functions of the Director of 
        the Office of Thrift Supervision are hereby transferred to the 
        Agency.
            (2) Agency powers.--The Agency shall have all powers, 
        duties, and authority which, before the date of the enactment 
        of this Act, were vested in the Director of the Office of 
        Thrift Supervision under the following provisions of law to the 
        extent such provisions apply to savings associations, savings 
        and loan holding companies, or the office, officers, or 
        employees of the Director:
                    (A) The Home Owners' Loan Act.
                    (B) The Federal Deposit Insurance Act.
                    (C) Any title of the Consumer Credit Protection 
                Act.
                    (D) The Bank Protection Act of 1968.
                    (E) The Home Mortgage Disclosure Act of 1975.
                    (F) The Community Reinvestment Act of 1977.
                    (G) The Depository Institution Management 
                Interlocks Act.
                    (H) The Bank Service Corporation Act.
                    (I) The Federal Financial Institutions Examination 
                Council Act of 1978.
                    (J) The Right to Financial Privacy Act of 1978.
                    (K) The Alternative Mortgage Transaction Parity Act 
                of 1982.
                    (L) The Expedited Funds Availability Act.
                    (M) The Financial Institutions Reform, Recovery, 
                and Enforcement Act of 1989.
                    (N) The Federal Deposit Insurance Corporation 
                Improvement Act of 1991.
                    (O) The Resolution Trust Corporation Refinancing, 
                Restructuring, and Improvement Act of 1991.
                    (P) The Riegle-Neal Interstate Banking and 
                Branching Efficiency Act of 1994.
                    (Q) The Riegle Community Development and Regulatory 
                Improvement Act of 1994.
                    (R) The Truth in Savings Act.
    (d) Regulation of State Nonmember Banks.--
            (1) Transfer to agency.--All functions of the Federal 
        Deposit Insurance Corporation relating to the supervision and 
        regulation of State nonmember banks, including savings banks, 
        (other than insurance, conservatorship, or receivership 
        functions) and foreign banks with insured branches (as defined 
        in section 3(s)(3) of the Federal Deposit Insurance Act) are 
        hereby transferred to the Agency.
            (2) Agency powers.--The Agency shall have all powers, 
        duties, and authority which, before the date of the enactment 
        of this Act, were vested in the Federal Deposit Insurance 
        Corporation or in the Board of Directors of such Corporation 
        under the following provisions of law:
                    (A) Sections 7(a), 20, 21, 22, 27, 30(c), 32, 33, 
                34, 35, 36, 37, 38, 39, 42, and 44, subsections (b) 
                through (n), (r), (s), (u), and (v) of section 8, 
                subsections (b)(2)(A), (c), (d), and (e) of section 10, 
                subsections (c) (other than paragraph (1)), (d), (g), 
                (i), (j), (l), (o), and (p) of section 18 of the 
                Federal Deposit Insurance Act.
                    (B) Any title of the Consumer Credit Protection 
                Act.
                    (C) The Depository Institution Management 
                Interlocks Act.
                    (D) The Federal Financial Institutions Examination 
                Council Act of 1978.
                    (E) The Home Mortgage Disclosure Act of 1975.
                    (F) The Right to Financial Privacy Act of 1978.
                    (G) The Alternative Mortgage Transaction Parity Act 
                of 1982.
                    (H) The Bank Service Corporation Act.
                    (I) The Expedited Funds Availability Act.
                    (J) The Financial Institutions Reform, Recovery, 
                and Enforcement Act of 1989.
                    (K) The Community Reinvestment Act of 1977.
                    (L) The Federal Deposit Insurance Corporation 
                Improvement Act of 1991.
                    (M) The Riegle-Neal Interstate Banking and 
                Branching Efficiency Act of 1994.
                    (N) The Riegle Community Development and Regulatory 
                Improvement Act of 1994.
                    (O) The Truth in Savings Act.
    (e) Regulation of Credit Unions.--
            (1) Transfer to agency.--All functions of the National 
        Credit Union Administration relating to the supervision and 
        regulation of credit unions, including the National Credit 
        Union Administration Central Liquidity Facility and the 
        Community Development Credit Union Revolving Loan Fund, (other 
        than insurance, conservatorship, or liquidating agency 
        functions) are hereby transferred to the Agency.
            (2) Agency powers.--The Agency shall have all powers, 
        duties, and authority which, before the date of the enactment 
        of this Act, were vested in the National Credit Union 
        Administration or the National Credit Union Administration 
        Board under the following provisions of law:
                    (A) The Federal Credit Union Act.
                    (B) The Community Development Credit Union 
                Revolving Loan Fund Transfer Act.
                    (C) Any title of the Consumer Credit Protection 
                Act.
                    (D) The Expedited Funds Availability Act.
                    (E) The Federal Financial Institutions Examination 
                Council Act of 1978.
                    (F) The Right to Financial Privacy Act of 1978.
                    (G) The Truth in Savings Act.
    (f) Regulations and Orders.--In addition to any authority under any 
Act referred to in subsection (a), (b), (c), (d), or (e), the Agency 
may prescribe such regulations and issue such orders as the Agency may 
determine to be appropriate to carry out the purposes of this chapter 
and the powers and duties of the Agency under this chapter and any Act 
referred to in any such subsection.

SEC. 7314. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO TRANSFERS OF 
              FUNCTIONS.

    (a) Appropriate Federal Banking Agency Redefined.--Section 3(q) of 
the Federal Deposit Insurance Act (12 U.S.C. 1813(q)) is amended to 
read as follows:
    ``(q) Appropriate Federal Banking Agency.--The term `appropriate 
Federal banking agency' means the Federal Banking Agency.''.
    (b) Members of FDIC Board.--Section 2(a)(1) of the Federal Deposit 
Insurance Act (12 U.S.C. 1812(a)(1)) is amended--
            (1) by striking subparagraph (A) and redesignating 
        subparagraphs (B) and (C) as subparagraphs (A) and (B), 
        respectively;
            (2) in subparagraph (A) (as so redesignated by paragraph 
        (1)), by striking ``Director of the Office of Thrift 
        Supervision'' and inserting ``Chairperson of the Federal 
        Banking Agency''; and
            (3) in subparagraph (B) (as so redesignated by paragraph 
        (1)), by striking ``3'' and inserting ``4''.

          Subchapter B--Abolition of Federal Banking Agencies

SEC. 7321. OFFICE OF COMPTROLLER OF THE CURRENCY AND POSITION OF 
              COMPTROLLER OF THE CURRENCY ABOLISHED.

    (a) In General.--Effective at the end of the 180-day period 
beginning on the date of the enactment of this Act, the Office of the 
Comptroller of the Currency and the position of Comptroller of the 
Currency are hereby abolished.
    (b) Technical and Conforming Amendments.--
            (1) Chapter nine of title VII of the Revised Statutes is 
        amended by striking sections 324, 325, and 326.
            (2) Subchapter I of chapter 3 of title 31, United States 
        Code, is amended by striking section 307.

SEC. 7322. OFFICE OF THRIFT SUPERVISION AND POSITION OF DIRECTOR OF THE 
              OFFICE OF THRIFT SUPERVISION ABOLISHED.

    (a) In General.--Effective at the end of the 180-day period 
beginning on the date of the enactment of this Act, the Office of 
Thrift Supervision and the position of Director of the Office of Thrift 
Supervision are hereby abolished.
    (b) Technical and Conforming Amendments.--
            (1) Section 3 of the Home Owners' Loan Act (12 U.S.C. 
        1462a) is amended by striking subsections (a) and (b).
            (2) Subchapter I of chapter 3 of title 31, United States 
        Code, is amended by striking section 309.

SEC. 7323. SAVINGS PROVISIONS.

    (a) Savings Provisions Relating to the Comptroller of the 
Currency.--
            (1) Existing rights, duties, and obligations not 
        affected.--Section 7313(a)(1) shall not affect the validity of 
        any right, duty, or obligation of the United States, the 
        Comptroller of the Currency, the Office of the Comptroller of 
        the Currency, or any other person, which--
                    (A) arises under or pursuant to any provision of 
                law referred to in section 7313(a)(2); and
                    (B) existed on the day before the date of the 
                enactment of this Act.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Comptroller of the Currency or the 
        Office of the Comptroller of the Currency shall abate by reason 
        of the enactment of this chapter, except that the Federal 
        Banking Agency shall be substituted for the Comptroller or 
        Office as a party to any such action or proceeding.
    (b) Savings Provisions Relating to the Board of Governors of the 
Federal Reserve System.--
            (1) Existing rights, duties, and obligations not 
        affected.--Section 7313(b)(1) shall not affect the validity of 
        any right, duty, or obligation of the United States, the Board 
        of Governors of the Federal Reserve System, or any other 
        person, which--
                    (A) arises under or pursuant to any provision of 
                law referred to in section 7313(b)(2); and
                    (B) existed on the day before the date of the 
                enactment of this Act.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Board of Governors of the Federal 
        Reserve System with respect to any function transferred to the 
        Federal Banking Agency shall abate by reason of the enactment 
        of this chapter, except that the Federal Banking Agency shall 
        be substituted for the Board of Governors as a party to any 
        such action or proceeding.
    (c) Savings Provisions Relating to the Director of the Office of 
Thrift Supervision.--
            (1) Existing rights, duties, and obligations not 
        affected.--Section 7313(c)(1) shall not affect the validity of 
        any right, duty, or obligation of the United States, the 
        Director of the Office of Thrift Supervision, the Office of 
        Thrift Supervision, or any other person, which--
                    (A) arises under or pursuant to any provision of 
                law referred to in section 7313(c)(2); and
                    (B) existed on the day before the date of the 
                enactment of this Act.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Director of the Office of Thrift 
        Supervision or the Office of Thrift Supervision shall abate by 
        reason of the enactment of this chapter, except that the 
        Federal Banking Agency shall be substituted for the Director or 
        Office as a party to any such action or proceeding.
    (d) Savings Provisions Relating to the Federal Deposit Insurance 
Corporation.--
            (1) Existing rights, duties, and obligations not 
        affected.--Section 7313(d)(1) shall not affect the validity of 
        any right, duty, or obligation of the United States, the 
        Federal Deposit Insurance Corporation, the Board of Directors 
        of such Corporation, or any other person, which--
                    (A) arises under or pursuant to any provision of 
                law referred to in section 7313(d)(2); and
                    (B) existed on the day before the date of the 
                enactment of this Act.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Federal Deposit Insurance 
        Corporation or the Board of Directors of such Corporation with 
        respect to any function transferred to the Federal Banking 
        Agency shall abate by reason of the enactment of this chapter, 
        except that the Federal Banking Agency may be substituted for 
        the Corporation or Board of Directors, as the case may be, as a 
        party to any such action or proceeding.
    (e) Savings Provisions Relating to the National Credit Union 
Administration.--
            (1) Existing rights, duties, and obligations not 
        affected.--Section 7313(e)(1) shall not affect the validity of 
        any right, duty, or obligation of the United States, the 
        National Credit Union Administration, the National Credit Union 
        Administration Board, or any other person, which--
                    (A) arises under or pursuant to any provision of 
                law referred to in section 7313(e)(2); and
                    (B) existed on the day before the date of the 
                enactment of this Act.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the National Credit Union 
        Administration or the National Credit Union Administration 
        Board with respect to any function transferred to the Federal 
        Banking Agency shall abate by reason of the enactment of this 
        chapter, except that the Federal Banking Agency may be 
        substituted for the Administration or the Board, as the case 
        may be, as a party to any such action or proceeding.
    (f) Continuation of Orders, Resolutions, Determinations, and 
Regulations.--All orders, resolutions, determinations, and regulations, 
which--
            (1) have been issued, made, prescribed, or allowed to 
        become effective by the Director of the Office of Thrift 
        Supervision, the Comptroller of the Currency, the Federal 
        Deposit Insurance Corporation, the Board of Governors of the 
        Federal Reserve System, or the National Credit Union 
        Administration (including orders, resolutions, determinations, 
        and regulations which relate to the conduct of 
        conservatorships, receiverships, or liquidating agents), or by 
        a court of competent jurisdiction, in the performance of 
        functions which are transferred by this chapter; and
            (2) are in effect on the date this Act takes effect (or 
        become effective after such date pursuant to the terms of the 
        order, resolution, determination or regulation, as in effect on 
        such date),
 shall continue in effect according to the terms of such orders, 
resolutions, determinations, and regulations and shall be enforceable 
by or against the Federal Banking Agency until modified, terminated, 
set aside, or superseded in accordance with applicable law by the 
Agency, by any court of competent jurisdiction, or by operation of law.

SEC. 7324. REFERENCES IN FEDERAL LAW TO FEDERAL BANKING AGENCIES.

    (a) Comptroller of the Currency and Director of the Office of 
Thrift Supervision.--Any reference in any Federal law to the 
Comptroller of the Currency, the Office of the Comptroller of the 
Currency, the Director of the Office of Thrift Supervision, or the 
Office of Thrift Supervision shall be deemed to be a reference to the 
Federal Banking Agency.
    (b) Board of Governors of the Federal Reserve System.--Any 
reference in any Federal law to the Board of Governors of the Federal 
Reserve System in connection with any function of the Board under any 
provision of law referred to in section 7313(b)(2) shall be deemed to 
be a reference to the Federal Banking Agency.
    (c) Federal Deposit Insurance Corporation.--Any reference in any 
Federal law to the Federal Deposit Insurance Corporation or the Board 
of Directors of such Corporation in connection with any function of the 
Corporation or Board of Directors under any provision of law referred 
to in section 7313(d)(2) shall be deemed to be a reference to the 
Federal Banking Agency.
    (d) National Credit Union Administration.--Any reference in any 
Federal law to the National Credit Union Administration or the National 
Credit Union Administration Board in connection with any function of 
the Administration or Board under any provision of law referred to in 
section 7313(e)(2) shall be deemed to be a reference to the Federal 
Banking Agency.

             Subchapter C--Section 235 Mortgage Refinancing

SEC. 7325. SECTION 235 MORTGAGE REFINANCING.

    Section 235(r) of the National Housing Act (12 U.S.C. 1715z(r)) is 
amended--
            (1) in paragraph (2)(C), by inserting after ``refinanced'' 
        the following: ``, plus the costs incurred in connection with 
        the refinancing as described in paragraph (4)(B) to the extent 
        that the amount for those costs is not otherwise included in 
        the interest rate as permitted by subparagraph (E) or paid by 
        the Secretary as authorized by paragraph (4)(B)'';
            (2) in paragraph (4)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting after ``otherwise)'' the following: ``and the 
                mortgagee (with respect to the amount described in 
                subparagraph (A))''; and
                    (B) in subparagraph (A), by inserting after 
                ``mortgagor'' the following: ``and the mortgagee''; and
            (3) by amending paragraph (5) to read as follows:
    ``(5) The Secretary shall use amounts of budget authority 
recaptured from assistance payments contracts relating to mortgages 
that are being refinanced for assistance payments contracts with 
respect to mortgages insured under this subsection. The Secretary may 
also make such recaptured amounts available for incentives under 
paragraph (4)(A) and the costs incurred in connection with the 
refinancing under paragraph (4)(B). For purposes of subsection 
(c)(3)(A), the amount of recaptured budget authority that the Secretary 
commits for assistance payments contracts relating to mortgages insured 
under this subsection and for amounts paid under paragraph (4) shall 
not be construed as unused.''.

SEC. 7326. PENALTY FOR EARLY REDEMPTION OF SAVINGS BONDS.

    (a) In General.--Subsection (b) of section 3105 of title 31, United 
States Code, is amended by adding at the end the following new 
paragraph:
            ``(3) In the case of any savings bond which is redeemed 
        within the 5-year period beginning on the date the bond is 
        issued, the redemption price paid on the redemption shall be 
        determined by reducing the holding period otherwise taken into 
        account by 6 months.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to bonds issued after September 30, 1995.

SEC. 7327. ONE DOLLAR COINS.

    (a) Color and Content.--Section 5112(b) of title 31, United States 
Code, is amended--
            (1) in the 1st sentence, by striking ``dollar,''; and
            (2) by inserting after the 4th sentence, the following new 
        sentence: ``The dollar coin shall be golden in color, have an 
        unreeded edge, have tactile and visual features that make the 
        denomination of the
         coin readily discernible, be minted and fabricated in the 
United States, and have similar metallic, anticounterfeiting properties 
as United States clad coinage in circulation on the date of the 
enactment of the United States One Dollar Coin Act of 1995.''.
    (b) American Veteran Dollar Coin.--Section 5112(d)(1) of title 31, 
United States Code, is amended by striking the 5th and 6th sentences 
and inserting the following new sentences: ``The reverse side of the 
dollar shall have a design recognizing America's veterans. The 
Secretary of the Treasury shall select an appropriate design for the 
obverse side of the dollar.''.
    (c) Effective Date.--Not later than 18 months after the date of 
enactment of this Act, the Secretary of the Treasury shall place into 
circulation 1 dollar coins authorized under subsection (a)(1) of 
section 5112 of title 31, United States Code, which comply with the 
design requirements of subsections (b) and (d)(1) of such section, as 
amended by subsections (a) and (b) of this section. The Secretary may 
include such coins in any numismatic set produced by the United States 
Mint before the date the coins are placed in circulation.

SEC. 7328. CEASING ISSUANCE OF ONE DOLLAR NOTES.

    (a) In General.--After the date that coins described in section 
2012(c) are first placed in circulation, no Federal reserve bank may 
order or place into circulation any $1 Federal Reserve note.
    (b) Exception.--The Secretary of the Treasury shall produce only 
such Federal Reserve notes of 1 dollar denomination as are required 
from time to time to meet the needs of collectors of this series. Such 
notes shall be produced in sheets and sold by the Secretary, in whole, 
or in part, at a price that exceeds the face value of the currency by 
an amount that, at a minimum, reimburses the Secretary for the cost of 
production.

       Subtitle E--Specific Commerce and Housing Program Reforms

SEC. 7401. OBLIGATION LIMITATION FOR MINORITY BUSINESS DEVELOPMENT 
              AGENCY.

    The total of obligations incurred in fiscal year 1996 for expenses 
of the Minority Business Development Agency described under the heading 
``Minority Business Development'' in title II of the Departments of 
Commerce, Justice, and State, the Judiciary, and Related Agencies 
Appropriations Act, 1995 (Public Law 103-317; 108 Stat. 1745-1746) may 
not exceed $44,733,000.

SEC. 7402. UNITED STATES TRAVEL AND TOURISM ADMINISTRATION.

    Title III of the International Travel Act of 1961 is repealed, the 
United States Travel and Tourism Administration established under 
section 301 of such Act is terminated, the Tourism Policy Council 
established under section 302 of such Act is terminated, the Travel and 
Tourism Advisory Board established under section 303 of such Act is 
terminated, the officers and employees of the Administration, Council, 
and Board are terminated, and the functions of the Administration, 
Council, and Board are transferred to the Secretary of Transportation.
SEC. 7403. EXPORT ADMINISTRATION.

    Not more than $247,000,000 may be made available to carry out the 
Export Administration Act of 1979 for each of fiscal years 1996, 1997, 
1998, 1999, and 2000.
SEC. 7404. ASSISTANCE FOR PUBLIC TELECOMMUNICATIONS FACILITIES AND 
              TELECOMMUNICATIONS DEMONSTRATIONS.

    (a) Repeal of Public Telecommunications Facilities Program.--
Subpart A of part IV of title III of the Communications Act of 1934 (47 
U.S.C. 390 et seq.) is repealed.
    (b) Repeal of Telecommunications Demonstration Grant Program.--
Section 395 of such Act (47 U.S.C. 395) is repealed.

SEC. 7405. ABOLISHMENT OF ADVANCED TECHNOLOGY PROGRAM.

    (a) Abolishment of Program.--Section 28 of the National Institute 
of Standards and Technology Act (15 U.S.C. 278n) is repealed.
    (b) Conforming Amendments.--The National Institute of Standards and 
Technology Act (15 U.S.C. 271 et seq.) is amended--
            (1) in section 2(d), by striking ``sections 25, 26, and 
        28'' and inserting ``sections 25 and 26''; and
            (2) in section 10(h)(1), by striking ``, including the 
        Program established under section 28,''.
SEC. 7406. FEES FOR FEDERAL AND FEDERALLY SPONSORED ENTERPRISES.

    (a) Fees for Government Sponsored Enterprises.--
            (1) In General.--To compensate the Federal Government for 
        borrowing and financial advantages derived from the 
        relationship of government-sponsored enterprises to the Federal 
        Government and treatment of such enterprises under Federal law, 
        the Secretary of the Treasury shall collect a fee from each 
        Government-sponsored enterprise for each fiscal year. The 
        Secretary of the Treasury shall deposit any such fee collected 
        in the general fund of the Treasury of the United States.
            (2) Amount.--The fee under this subsection for a 
        government-sponsored enterprise for a fiscal year shall be the 
        following amount:
                    (A) Fannie mae and freddie mac.--For the Federal 
                National Mortgage Association and the Federal Home Loan 
                Mortgage Corporation--
                            (i) for fiscal year 1996, an amount equal 
                        to 0.05 percent of the aggregate original 
                        principal balance of mortgage-backed securities 
                        and substantially equivalent instruments issued 
                        or guaranteed by such enterprise during such 
                        year;
                            (ii) for fiscal year 1997, an amount equal 
                        to 0.10 percent of the aggregate original 
                        principal balance of mortgage-backed securities 
                        and substantially equivalent instruments issued 
                        or guaranteed by such enterprise during such 
                        year; and
                            (iii) for fiscal year 1998 and each fiscal 
                        year thereafter, an amount equal to 0.15 
                        percent of the aggregate original principal 
                        balance of mortgage-backed securities and 
                        substantially equivalent instruments issued or 
                        guaranteed by such enterprise during such year.
                    (B) Sallie mae.--For the Student Loan Marketing 
                Association--
                            (i) for fiscal year 1996, an amount equal 
                        to 0.10 percent of the aggregate original 
                        principal balance of debt securities issued by 
                        such enterprise during such year;
                            (ii) for fiscal year 1997, an amount equal 
                        to 0.20 percent of the aggregate original 
                        principal balance of debt securities issued by 
                        such enterprise during such year; and
                            (iii) for fiscal year 1998, an amount equal 
                        to 0.30 percent of the aggregate original 
                        principal balance of debt securities issued by 
                        such enterprise during such year.
                    (C) Connie lee.--For the College Construction Loan 
                Insurance Association--
                            (i) for fiscal year 1996, an amount equal 
                        to 0.10 percent of the aggregate original 
                        principal balance of bonds insured or reinsured 
                        by such enterprise during such year;
                            (ii) for fiscal year 1997, an amount equal 
                        to 0.20 percent of the aggregate original 
                        principal balance of bonds insured or reinsured 
                        by such enterprise during such year; and
                            (iii) for fiscal year 1998, an amount equal 
                        to 0.30 percent of the aggregate original 
                        principal balance of bonds insured or reinsured 
                        by such enterprise during such year.
            (3) Calculation.--The Secretary of the Treasury shall 
        caclulate the amount of the fee under this subsection for each 
        fiscal year following the conclusion of such fiscal year and 
        shall consult with the Director of the Office of Federal 
        Housing Enterprise Oversight in determining the amount of the 
        fees under paragraph (2)(A).
            (4) Definition.--For purposes of this subsection, the term 
        ``government sponsored enterprise'' means--
                    (A) the College Construction Loan Insurance 
                Association;
                    (B) the Federal Home Loan Mortgage Corporation;
                    (C) the Federal National Mortgage Association; and
                    (D) the Student Loan Marketing Association.
    (b) Government National Mortgage Association Guarantee Fees.--
Section 306(g)(3) of the National Housing Act (12 U.S.C. 1721(g)(3)) is 
amended by adding at the end the following new subparagraph:
    ``(F) Notwithstanding any other provision of this paragraph, the 
fee charged by the Association for any guarantee of the timely payment 
of principal or interest on any security or note based on or backed by 
mortgages shall be--
            ``(i) 10 basis points for any guarantee made during fiscal 
        year 1997; and
            ``(ii) 15 basis points for any guarantee made after fiscal 
        year 1997.''.
    (c) Conforming Amendments.--
            (1) Fannie mae.--The first sentence of section 304(f) of 
        the Federal National Mortgage Association Charter Act (12 
        U.S.C. 1719(f)) is amended by inserting ``and section 7496(a) 
        of the Restructuring a Limited Government Act,'' after ``this 
        Act''.
            (2) Freddie mac.--Section 306(i) of the Federal Home Loan 
        Mortgage Corporation Act (12 U.S.C. 1455(i)) is amended by 
        striking ``sections 303(c) and 1316(c) of this Act'' and 
        inserting ``subsection (c) of this section, section 303(c) of 
        this Act, and section 7406(a) of the Restructuring a Limited 
        Government Act, and''

SEC. 7407. EXTENSION OF SPECTRUM AUCTION AUTHORITY OF THE FEDERAL 
              COMMUNICATIONS COMMISSION.

    Section 309(j)(11) of the Communications Act of 1934 (47 U.S.C. 
309(j)(11)) is amended by striking ``September 30, 1998'' and inserting 
``September 30, 2000''.

SEC. 7408. BUREAU OF CENSUS.

    Amounts made available for salaries and expenses for the Bureau of 
the Census for fiscal years 1996 through 2000 may not exceed 
$128,286,000 for each of such fiscal years. For the purposes of this 
section, the term ``salaries and expenses'' means the salaries and 
expenses for which amounts were appropriated for fiscal year 1995 under 
the appropriations account numbered 13-0401-0-1-376 and identified as 
available budget authority under item 43.00.

SEC. 7409. COPYRIGHT OFFICE.

    Amounts made available for salaries and expenses for the Copyright 
Office of the Library of Congress for fiscal years 1996 through 2000 
may not exceed $9,446,000 for each of such fiscal years. For the 
purposes of this section, the term ``salaries and expenses'' means the 
salaries and expenses for which amounts were appropriated for fiscal 
year 1995 under the appropriations account numbered 03-0102-0-1-376 and 
identified as available budget authority under item 43.00.
                       TITLE VIII--TRANSPORTATION

             Subtitle A--Air Transportation Program Reform

SEC. 8001. AIR TRAFFIC CONTROL CORPORATION.

    (a) Short Title.--This section may be cited as the ``Air Traffic 
Control Service Privatization and Improvement Act of 1995''.
    (b) Establishment of Corporation.--
            (1) In general.--There is established a nonprofit 
        corporation, to be known as the Airways Corporation, which--
                    (A) shall operate the air traffic control system of 
                the United States after the completion of transfers of 
                air traffic control facilities, personnel, and 
                equipment under subsection (j);
                    (B) except as provided in paragraph (2), shall not 
                be an agency or establishment of the United States 
                Government;
                    (C) shall have its principal office in the District 
                of Columbia and is deemed to be a resident thereof; and
                    (D) to the extent consistent with this Act, shall 
                be subject to the District of Columbia Business 
                Corporation Act (D.C. Code, Section 29-301 et seq.).
            (2) War or national emergency.--
                    (A) Transfer of functions.--In the event of a 
                declared war or national emergency, the President may 
                by Executive order temporarily transfer any functions, 
                personnel, property, records, funds, and other matters 
                relating to the Airways Corporation to the Department 
                of Defense.
                    (B) Development of plans.--The board of directors 
                of the Airways Corporation, in consultation with the 
                Secretary of Defense, shall develop plans for the 
                effective discharge of the functions of the Corporation 
                in the event of a declared war or national emergency.
    (c) Incorporation.--
            (1) Appointment of incorporators.--The President shall 
        appoint 5 incorporators, by and with the advice and consent of 
        the Senate, who shall serve as the initial board of directors 
        of the Airways Corporation until the first annual meeting of 
        stockholders, or until a board of directors is elected in 
        accordance with subsection (e), whichever is later.
            (2) Functions of incorporators.--The incorporators 
        appointed under this subsection shall--
                    (A) subject to approval by the President, draft and 
                file articles of incorporation for the Airways 
                Corporation, draft the initial bylaws of the 
                Corporation, and take any other actions necessary to 
                the establishment and initial operation of the 
                Corporation;
                    (B) arrange for an initial stock offering in 
                accordance with subsection (d);
                    (C) establish initial criteria for determining what 
                is a business aircraft for purposes of subsection 
                (d)(1)(C); and
                    (D) determine limits for liability insurance 
                appropriate for the Corporation to maintain in order to 
                cover its liability for actions or inactions taken by 
                or on behalf of the Corporation and acquire such 
                insurance from nongovernmental sources.
            (3) Articles of incorporation.--The articles of 
        incorporation filed by the incorporators in accordance with 
        paragraph (2)--
                    (A) shall provide for cumulative voting under 
                section 27(d) of the District of Columbia Business 
                Corporation Act (D.C. Code, Section 29-327(d)); and
                    (B) may be amended, altered, changed, or repealed 
                by a vote of not less than 66\2/3\ percent of the 
                outstanding shares of the voting capital stock of the 
                Corporation.
    (d) Issuance of Stock.--
            (1) In general.--The Airways Corporation may issue and have 
        outstanding, in such numbers and amounts as it shall determine, 
        shares of capital stock consisting of 6 classes as follows:
                    (A) A class of shares to be known as Class A, 
                consisting of not more than 40 percent of all shares of 
                common stock issued by the Corporation, which may only 
                be purchased by air carriers.
                    (B) A class of shares to be known as Class B, 
                consisting of not more than 20 percent of all shares of 
                common stock issued by the Corporation, which may only 
                be purchased by persons who are private pilots but are 
                not employed by air carriers as pilots.
                    (C) A class of shares to be known as Class C, 
                consisting of not more than 10 percent of all shares of 
                common stock issued by the Corporation, which may only 
                be purchased by persons who are not air carriers and 
                who own one or more business aircraft.
                    (D) A class of shares to be known as Class D, 
                consisting of not more than 7\1/2\ percent of all 
                shares of common stock issued by the Corporation, which 
                may only be purchased by persons who are employed by an 
                air carrier as pilots.
                    (E) A class of shares to be known as Class E, 
                consisting of not more than 7\1/2\ percent of all 
                shares of common stock issued by the Corporation, which 
                may only be purchased by employees of the Corporation.
                    (F) A class of shares to be known as Class F, 
                consisting of 7\1/2\ percent of all shares of common 
                stock issued by the Corporation, which shall be issued 
                to the Secretary of Transportation on behalf of the 
                United States.
                    (G) A class of shares to be known as Class G, 
                consisting of 7\1/2\ percent of all shares of common 
                stock issued by the Corporation, which shall be issued 
                to the Secretary of Defense on behalf of the United 
                States.
            (2) Price of first issue.--The shares of common stock first 
        issued by the Airways Corporation (other than those shares 
        issued under paragraphs (1)(F) and (1)(G)) shall be sold at a 
        price equal to not more than $100 for each share.
            (3) Voting rights.--
                    (A) In general.--Each share of common stock in the 
                Airways Corporation--
                            (i) shall be vested with all voting rights; 
                        and
                            (ii) shall be entitled to one vote.
                    (B) Assignment.--A person owning one or more shares 
                of Class A, B, C, D, or E stock may assign the right to 
                vote all or part of their shares to any person eligible 
                to own shares of that class of stock.
            (4) Inspection and copying rights.--Notwithstanding section 
        45(b) of the District of Columbia Business Corporation Act 
        (D.C. Code, Section 29-345(b)), a stockholder of the Airways 
        Corporation shall have the right to inspect and copy records of 
        the Corporation pursuant to such section without regard to the 
        percentage of the Corporation's stock the stockholder holds.
    (e) Directors and Officers.--
            (1) Board of directors.--
                    (A) Election.--The Airways Corporation shall have a 
                board of directors consisting of 15 individuals who are 
                citizens of the United States, elected annually as 
                follows:
                            (i) 6 members elected by shareholders 
                        owning one or more shares of Class A stock.
                            (ii) 3 members elected by shareholders 
                        owning one or more shares of Class B stock.
                            (iii) 2 members elected by shareholders 
                        owning one or more shares of Class C stock.
                            (iv) 1 member elected by shareholders 
                        owning one or more shares of Class D stock.
                            (v) 1 member elected by shareholders owning 
                        one or more shares of Class E stock.
                            (vi) 1 member appointed by the Secretary of 
                        Transportation.
                            (vii) 1 member appointed by the Secretary 
                        of Defense.
                    (B) Chairman.--The board of directors shall elect 
                one of its members annually to serve as chairman of the 
                board of directors.
                    (C) Compensation and expenses.--Members of the 
                board of directors may receive compensation in 
                accordance with rules established by the board of 
                directors.
            (2) President of corporation and appointment of other 
        officers.--
                    (A) Appointment.--The Airways Corporation shall 
                have a president and such other officers as may be 
                appointed by the board of directors from among persons 
                who are citizens of the United States. Persons 
                appointed under this subparagraph shall serve at the 
                pleasure of the board of directors.
                    (B) Compensation.--Individuals appointed under 
                subparagraph (B) shall be compensated at rates fixed by 
                the board of directors.
                    (C) Disclosure of receipt of other compensation.--
                An officer of the Airways Corporation shall disclose to 
                the entire board of directors salary from any source 
                other than the Corporation during the period of the 
                officer's employment by the Corporation.
    (e) Powers.--
            (1) In general.--The Airways Corporation may--
                    (A) plan, initiate, construct, own, manage, and 
                operate, by itself or in cooperation with other 
                entities, an air traffic control system;
                    (B) furnish, for hire, air traffic control services 
                to air transportation common carriers and other 
                operators of civil and military aircraft;
                    (C) enter into contracts under which other entities 
                may operate individual air traffic control facilities 
                and provide services on behalf of the Corporation;
                    (D) acquire, by construction, purchase, or gift, 
                physical facilities, equipment, and devices necessary 
                to the operations of the Corporation, including air 
                traffic control and associated equipment and 
                facilities;
                    (E) issue voting securities in accordance with 
                subsection (d);
                    (F) issue nonvoting securities, bonds, debentures, 
                and other certificates of indebtedness as may be 
                appropriate; and
                    (G) conduct or contract for the conduct of research 
                and development related to the operations of the 
                Corporation and establish technical specifications of 
                all elements of the air traffic control system.
            (2) Usual powers.--To conduct activities authorized by 
        paragraph (1), the Airways Corporation shall have the usual 
        powers conferred upon a corporation by the District of Columbia 
        Business Corporation Act (D.C. Code, Section 29-301 et seq.).
    (f) Fees.--
            (1) In general.--The Airways Corporation may establish 
        reasonable nondiscriminatory fees for the provision of air 
        traffic control services and charge such fees to air carriers 
        and other business users of such services. During the 10-year 
        period beginning on the date of the enactment of this Act, the 
        Corporation may not charge such fees to nonbusiness users of 
        such services.
            (2) Review of fees.--The Secretary of Transportation shall 
        issue regulations not later than 180 days after the date of the 
        enactment of this Act for the review and appeal of fees 
        established by the Airways Corporation under paragraph (1).
    (g) Foreign Business Negotiations.--
            (1) Negotiations of corporation.--Whenever the Airways 
        Corporation enters into negotiations with any foreign entity 
        with respect to facilities, operations, and services authorized 
        by this section to be conducted by the Corporation--
                    (A) the Corporation shall notify the Secretary of 
                State and the Secretary of Transportation regarding the 
                initiation, conduct, and foreign policy implications of 
                such negotiations; and
                    (B) the Secretary of State shall advise the 
                Corporation of relevant foreign policy considerations 
                and, upon request of the Corporation, shall render such 
                assistance as may be appropriate.
            (2) Negotiations of secretary of state.--The Secretary of 
        State shall consult with the Airways Corporation with respect 
        to all negotiations conducted by the Secretary regarding 
        matters which relate to air traffic control.
    (h) Sanctions.--
            (1) Petition for relief.--Except as otherwise prohibited by 
        law--
                    (A) if the Airways Corporation engages in any 
                activity, or takes any action in furtherance of any 
                policy, which is inconsistent with the policy and 
                purposes of this section; or
                    (B) if any other person--
                            (i) violates any provision of this section;
                            (ii) obstructs or interferes with any 
                        activity authorized by this section;
                            (iii) refuses, fails, or neglects to 
                        discharge any duty or responsibility under this 
                        section; or
                            (iv) threatens any such violation, 
                        obstruction, interference, refusal, failure, or 
                        neglect;
        the district court of the United States for any district in 
        which such Corporation or other person resides or may be found 
        shall have jurisdiction, upon petition of the Attorney General 
        of the United States, to grant such equitable relief as may be 
        necessary or appropriate to prevent or terminate such activity.
            (2) Punishment, liability, or sanction under other 
        provisions.--Nothing contained in this subsection shall be 
        considered to relieve any person of any liability, punishment, 
        or sanction under any other law.
    (i) Reports.--
            (1) Corporation.--During the 5-year period beginning on the 
        date of the enactment of this Act, the Airways Corporation 
        shall transmit to the President and Congress, annually and at 
        such other times as it considers appropriate, a comprehensive 
        and detailed report of its operations, activities, and 
        accomplishments under this section.
            (2) Administrator.--During the 5-year period beginning on 
        the date of the enactment of this Act, the Administrator shall 
        transmit to Congress, annually and at such other times as the 
        Administrator considers appropriate, an evaluation of the 
        capital structure of the Airways Corporation so as to assure 
        Congress that such structure is consistent with the most 
        efficient and economical operation of the Corporation.
    (j) Transfer of Facilities, Personnel, and Equipment of Civil Air 
Traffic Control System.--
            (1) In general.--Not later than 180 days after the date the 
        Senate approves the appointments of the President under 
        subsection (c)(1), the Secretary of Transportation shall take 
        such action as may be necessary--
                    (A) to transfer to the Airways Corporation all 
                right, title, and interest of the United States in, and 
                all control of the United States over, all facilities 
                and equipment under the jurisdiction of the United 
                States on the date of the enactment of this Act, which 
                are part of the air traffic control system, including 
                the air route traffic centers, terminal radar control 
                centers, VHF omnidirectional radio stations, long-range 
                and terminal radar systems, flight service stations, 
                and related facilities and equipment;
                    (B) to transfer all right of the United States in 
                airport control towers, landing aids, and landing slots 
                to owners of the airport where such towers and aids are 
                located and to which such landing slots relates;
                    (C) to transfer to the Airways Corporation all 
                personnel who are employed in operating, maintaining, 
                or managing the air traffic control system on the date 
                of the enactment of this Act; and
                    (D) except as provided in paragraph (2), to 
                terminate the civil service status of air traffic 
                control personnel.
            (2) Retirement benefits.--
                    (A) In general.--Any Federal employee who is 
                transferred to the Airways Corporation under this 
                section and who, on the day before the date of such 
                transfer, is subject to chapter 83 or 84 of title 5, 
                United States Code, shall, so long as that individual 
                remains continuously employed by the Airways 
                Corporation, remain subject to such chapter.
                    (B) Service to be treated as ``government 
                employment''.--Any continuous employment described in 
                subparagraph (A) shall be considered to be employment 
                by the Government of the United States for purposes of 
                such chapter 83 or 84, as applicable.
                    (C) Contributions.--The Airways Corporation shall 
                be considered, for those individuals to whom this 
                paragraph applies, the employing agency for purposes of 
                such chapter 83 or 84, as applicable, and shall be 
                responsible for making all appropriate employer 
                contributions thereunder (which, in the case of 
                employer contributions to the Civil Service Retirement 
                and Disability Fund, shall be as determined by the 
                Office of Personnel Management).
    (k) Limitations on Funding.--
            (1) No appropriated funds.--The Airways Corporation shall 
        not receive any funds from the Federal Government beyond fees 
        paid for use of the air traffic control system by the Federal 
        Government.
            (2) No borrowing from treasury.--The Airways Corporation 
        may not borrow money from the Treasury of the United States or 
        receive federally guaranteed loans.
    (l) Liability of Corporation.--Notwithstanding any other provision 
of law, the Airways Corporation is immune from all tort liability with 
respect to the provision of air traffic control services which is not 
based on fault.
    (m) Nonliability of Air Traffic Controllers.--A person employed by 
the Airways Corporation as an air traffic controller may not be held 
personally liable by any Federal or State court for negligent actions 
or inactions (other than actions or inactions that constitute gross 
negligence or that demonstrate a greater disregard of a duty of care 
than gross negligence, including intentional tortious conduct) of such 
person in carrying out any duty of such person for the Corporation. The 
Corporation may be held liable for such actions or inactions.
    (n) Reduction in Tax on Transportation of Persons by Air.--
            (1) In general.--Subsections (a) and (b) of section 4261 of 
        the Internal Revenue Code of 1986 (relating to transportation 
        of persons by air) are each amended by striking ``10 percent'' 
        and inserting ``3.5 percent''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply to transportation beginning after the 30th day 
        following the date of the enactment of this Act but shall not 
        apply to amounts paid on or before such 30th day.
    (o) Definitions.--As used in this section--
            (1) the terms ``airport'' and ``public-use airport'' have 
        the meaning such terms have under section 47102 of title 49, 
        United States Code;
            (2) the terms ``air carrier'', ``aircraft'', ``air 
        transportation'', ``civil aircraft'', ``citizen of the United 
        States'', ``person'', and ``United States'' have the meaning 
        such terms have under section 40102 of title 49, United States 
        Code;
            (3) the term ``Administration'' means the Federal Aviation 
        Administration; and
            (4) the term ``Administrator'' means the Administrator of 
        the Federal Aviation Administration.
    (p) Conforming Amendments.--Not later than 1 year after the date of 
the enactment of this Act, the Secretary of Transportation shall submit 
to Congress such conforming amendments to the laws of the United States 
as the Secretary of Transportation determines are necessary to 
implement this section.

SEC. 8002. OBLIGATION LIMITATION FOR AIRPORT IMPROVEMENT PROGRAM.

    Section 47104 of title 49, United States Code, is amended be adding 
at the end the following:
    ``(d) Obligation Limitation.--Notwithstanding any other provision 
of law, the Secretary may not incur obligations under subsection (b) of 
this section in any of fiscal years 1996 through 2000 which exceed 75 
percent of the obligations incurred under subsection (b) in fiscal year 
1995.''.
SEC. 8003. TERMINATION OF ESSENTIAL AIR SERVICE PROGRAM.

    Sections 41737(d)(2) and 41742 of title 49, United States Code, are 
each amended by striking ``1998'' and inserting ``1995''.
SEC. 8004. OBLIGATION LIMITATION FOR FAA OPERATIONS.

    The total of obligations incurred in each of fiscal years 1996, 
1997, 1998, 1999, and 2000 for expenses of the Federal Aviation 
Administration described under the heading ``Operations'' in title I of 
the Department of Transportation and Related Agencies Appropriations 
Act, 1995 (Public Law 103-331; 108 Stat. 2474-2475) may not exceed 
$4,581,000 per fiscal year.
SEC. 8005. REPEAL OF AUTHORIZATIONS FOR THE AIRWAY SCIENCE PROGRAM, 
              COLLEGIATE TRAINING INITIATIVE, AND AIR CARRIER 
              MAINTENANCE TECHNICIAN TRAINING FACILITY GRANT PROGRAM.

    (a) Airway Science Program.--All authority for--
            (1) the Secretary of Transportation to enter into grant 
        agreements with universities or colleges having an airway 
        science curriculum recognized by the Federal Aviation 
        Administration, to conduct demonstration projects in the 
        development, advancement, or expansion of airway science 
        programs; and
            (2) the Federal Aviation Administration to enter into 
        competitive grant agreements with institutions of higher 
        education having airway science curricula, and all 
        authorizations to appropriate for such purposes, as enacted 
        under the head, ``Federal Aviation Administration, Facilities 
        and Equipment'', in the Department of Transportation and 
        Related Agencies Appropriations Acts for fiscal years ending 
        before October 1, 1993;
is repealed.
    (b) Collegiate Training Initiative.--Section 362 of the Department 
of Transportation and Related Agencies Appropriations Act, 1993 (Public 
Law 102-388), is repealed, except that the Administrator of the Federal 
Aviation Administration may continue to convert appointment of persons 
who have been appointed pursuant to such section prior to the effective 
date of this Act from the excepted service to a career conditional or 
career appointment in the competitive civil service, pursuant to 
subsection (c) of such section.
    (c) Air Carrier Maintenance Technician Training Facility Grant 
Program.--Section 119 of Public Law 102-581 (49 U.S.C. App. 1354 note) 
is repealed.
SEC. 8006. FEES FOR USE OF SLOTS AT HIGH DENSITY AIRPORTS.

    Section 41714 of title 49, United States Code, is amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following:
    ``(h) Fees.--Not later than September 1, 1995, the Secretary shall 
establish fees for the use of slots at high density airports in an 
amount sufficient to result in the collection of $300,000,000 per 
fiscal year for each fiscal year beginning after September 30, 1995. 
The Secretary shall collect such fees in fiscal year 1996 and each 
fiscal year thereafter and shall deposit the amounts collected in the 
general fund of the Treasury.''.

           Subtitle B--Highway Transportation Program Reform

SEC. 8101. TERMINATION OF INTERSTATE COMMERCE COMMISSION.

    (a) In General.--There are transferred to the Secretary, effective 
January 1, 1994, all functions of the Commission.
    (b) Authority of Office of Management and Budget.--The Director of 
the Office of Management and Budget, in consultation with the 
Commission and the Secretary, may make such determinations as may be 
necessary with regard to the functions transferred by this section, and 
to make such additional incidental dispositions of assets, liabilities, 
contracts, property, and records, as may be necessary to carry out the 
provisions of this section. The unobligated funds of the Commission 
shall not be transferred to the Department of Transportation in order 
to carry out the transfer of functions under this section, and the 
number of fulltime employee positions within the Department of 
Transportation shall not be increased as a result of such transfer of 
functions.
    (c) Joint Planning for Transfer.--The Chairman of the Commission 
and the Secretary shall, beginning as soon as practicable after the 
date of enactment of this section, jointly plan for the orderly 
transfer of functions under this section.
    (d) Interim Use of Interstate Commerce Commission Personnel.--Prior 
to January 1, 1994, and with the consent of the Commission, the 
Secretary may use the services of officers, employees, and other 
personnel of the Commission under such terms and conditions as will 
reasonably facilitate the orderly transfer of functions under this 
section.
    (e) Savings Provisions.--
            (1) In general.--All orders, determinations, rules, 
        regulations, permits, contracts, certificates, licenses, and 
        privileges--
                    (A) which have been issued, made, granted, or 
                allowed to become effective by any agency or official 
                thereof, or by a court of competent jurisdiction, in 
                the performance of any function which is transferred by 
                this section to the Secretary from the Commission; and
                    (B) which are in effect immediately before the 
                transfer of functions by this section,
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with law by the Secretary or any other duly 
        authorized official, by any court of competent jurisdiction, or 
        by operation of law.
            (2) Continuation of proceedings.--The transfer of functions 
        by this section shall not affect any proceedings, including 
        rulemaking proceedings, or any application for any license, 
        permit, or certificate, pending before the Commission 
        immediately before the transfer takes effect. Such proceedings 
        and applications shall be continued at the Department of 
        Transportation. Orders shall be issued in such proceedings, and 
        appeals shall be taken therefrom, as if this section had not 
        been enacted; and orders issued in any such proceedings shall 
        continue in effect until modified, terminated, superseded, or 
        revoked by the Secretary of Transportation, by a court of 
        competent jurisdiction, or by operation of law. Nothing in this 
        subsection shall be deemed to
         prohibit the discontinuance or modification of any such 
proceeding under the same terms and conditions and to the same extent 
that such proceeding could have been discontinued or modified if this 
section had not been enacted.
            (3) Effect on pending civil actions.--Except as provided in 
        paragraph (5)--
                    (A) the transfer of any function under this section 
                shall not affect any civil action relating to such 
                function which is commenced prior to the date the 
                transfer takes effect; and
                    (B) in all such actions, proceedings shall be had, 
                appeals taken, and judgments rendered, in the same 
                manner and effect as if this section had not been 
                enacted.
            (4) Nonabatement of actions.--No action or other proceeding 
        commenced by or against any officer in that officer's official 
        capacity as an officer of the Commission shall abate by reason 
        of the transfer of any function under this section. No cause of 
        action by or against the Commission, or by or against any 
        officer thereof in that officer's official capacity, shall 
        abate by reason of the transfer of any function under this 
        section.
            (5) Judicial administrative provision.--If immediately 
        before the transfer of functions by this section the Commission 
        or any officer thereof in that officer's official capacity is a 
        party to an action relating to a function transfer by this 
        section, then such action shall be continued with the Secretary 
        or other appropriate official of the Department of 
        Transportation substituted or added as a party.
            (6) References.--With respect to any function transferred 
        by this section and performed on or after the effective date of 
        the transfer, reference in any Federal law to the Interstate 
        Commerce Commission or the Commission (insofar as such term 
        refers to the Interstate Commerce Commission), or to any 
        officer or office thereof, shall be deemed to refer to the 
        Department of Transportation, or other official or component of 
        the Department of Transportation in which such function vests.
            (7) Exercise of functions by secretary.--In the exercise of 
        any function transferred by this section, the Secretary shall 
        have the same authority as that vested in the Commission with 
        respect to such function immediately preceding its transfer, 
        and actions of the Secretary shall have the same force and 
        effect as when exercised by the Commission. Orders and actions 
        of the Secretary in the exercise of the functions transferred 
        under this section shall be subject to judicial review to the 
        same extent and in the same manner as if such orders and 
        actions had been by the Commission in the exercise of such 
        functions immediately preceding their transfer. Any statutory 
        requirements relating to notice, hearings, actions upon the 
        record, or administrative review that apply to any functions 
        transferred by this section shall apply to the exercise of such 
        functions by the Secretary.
    (f) Reports.--No later than July 1, 1994, the Secretary shall 
submit to the appropriate committees of Congress a report on the 
functions transferred from the Commission to the Department of 
Transportation under this section. The report shall include--
            (1) an assessment of benefits compared to costs associated 
        with each of these functions, both with respect to persons 
        affected directly and to the public generally;
            (2) recommendations for the elimination of functions 
        identified as redundant, or substantially the same as functions 
        or services which are performed by the Department of 
        Transportation or other public or private organizations prior 
        to the transfer of functions under this section; and
            (3) recommendations to modify or eliminate those functions 
        that do not provide substantial economic or safety benefits to 
        the general public.
    (g) Conforming Amendments.--
            (1) Executive level pay rates.--
                    (A) Section 5314 of title 5, United States Code, is 
                amended by striking ``Chairman, Interstate Commerce 
                Commission.''.
                    (B) Section 5315 of title 5, United States Code, is 
                amended by striking ``Members, Interstate Commerce 
                Commission.''.
            (2) Termination of commission.--Sections 10301 through 
        10308 of title 49, United States Code, are repealed.
            (3) Effective date.--The amendments made by this section 
        shall become effective on January 1, 1994.
    (h) Definitions.--In this section--
            (1) the term ``Commission'' means the Interstate Commerce 
        Commission;
            (2) the term ``function'' means a function, power, or duty; 
        and
            (3) the term ``Secretary'' means the Secretary of 
        Transportation.
    (i) Rescission and Transfer of Funds.--Of the funds made available 
under the heading ``Interstate Commerce Commission--Salaries and 
Expenses'' in the Department of Transportation and Related Agencies 
Appropriations Act, 1994 (Public Law 103-122)--
            (1) $18,000,000 is rescinded; and
            (2) $15,000,000 shall be transferred to and merged with the 
        appropriation in such Act for ``DEPARTMENT OF TRANSPORTATION--
        OFFICE OF THE SECRETARY--Immediate Office of the Secretary''.

SEC. 8102. CUSTOMS TONNAGE FEES.

    (a) Increase in Fees.--Section 36 of the Act of August 5, 1909 (46 
App. 121, 36 Stat. 111), is amended--
            (1) by striking ``9 cents per ton, not to exceed in the 
        aggregate 45 cents per ton in any one year, for fiscal years 
        1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998'' and inserting 
        ``24 cents per ton, not to exceed in the aggregate $1.20 per 
        ton in any one year, for fiscal years 1996, 1997, 1998, 1999, 
        and 2000''; and
            (2) by striking ``27 cents per ton, not to exceed $1.35 per 
        ton per annum, for fiscal years 1991, 1992, 1993, 1994, 1995, 
        1996, 1997, 1998'' and inserting ``71 cents per ton, not to 
        exceed $3.55 per ton per annum, for fiscal years 1996, 1997, 
        1998, 1999, and 2000''.
    (b) Conforming Amendment.--The Act entitled ``An Act concerning 
tonnage duties on vessels entering otherwise than by sea'', approved 
March 8, 1910 (36 Stat. 234; 46 App. U.S.C. 132), is amended by 
striking ``9 cents per ton, not to exceed in the aggregate 45 cents per 
ton in any one year, for fiscal years 1991, 1992, 1993, 1994, 1995, 
1996, 1997, and 1998'' and inserting ``24 cents per ton, not to exceed 
in the aggregate $1.20 per ton in any one year, for fiscal years 1996, 
1997, 1998, 1999, and 2000''.

SEC. 8103. FEES FOR OPERATION OF FOREIGN REPAIR STATIONS.

    Not later than September 1, 1995, the Secretary of Transportation 
shall establish fees for maintenance and repairs carried out on 
aircraft not owned or operated by the United States, and engines and 
other parts and components of such aircraft, at foreign repair stations 
operated by the Federal Aviation Administration in an amount sufficient 
to cover the cost of operating such stations in each fiscal year 
beginning after September 30, 1995. The Secretary shall collect such 
fees in fiscal year 1996 and each fiscal year thereafter and shall 
deposit the amounts collected in the general fund of the Treasury.

SEC. 8104. ELIMINATION OF FUNDING FOR HIGHWAY DEMONSTRATION PROJECTS.

    (a) Repeal of Authorization of Appropriations.--Sections 1103(b), 
1104(b), 1105(f), 1106(a)(2), 1106(b)(2), 1107(b), and 1108(b) of the 
Intermodal Surface Transportation Efficiency Act of 1991 (105 Stat. 
2027-2063) are each amended by striking ``through 1997'' and inserting 
``through 1995''.
    (b) Conforming Amendments.--Sections 1103(c), 1104(c), 1105(g)(2), 
1106(a)(3), 1106(b)(3), 1107(c), and 1108(c) of such Act are each 
amended by striking ``1995, 1996, and 1997'' and inserting ``and 
1995''.

             Subtitle C--Rail Transportation Program Reform

SEC. 8201. AMTRAK.

    Section 24104(a) of title 49, United States Code, is amended to 
read as follows:
    ``(a) In General.--There are authorized to be appropriated to the 
Secretary of Transportation--
            ``(1) $612,000,000 for fiscal year 1996;
            ``(2) $612,000,000 for fiscal year 1997;
            ``(3) $612,000,000 for fiscal year 1998;
            ``(4) $303,000,000 for fiscal year 1999; and
            ``(5) $303,000,000 for fiscal year 2000,
for the benefit of Amtrak for capital expenditures under this part, 
operating expenses, and payments described in subsection (c)(1)(A) 
through (C).''.
SEC. 8202. ELIMINATION OF FUNDING FOR MAGLEV PROTOTYPE DEVELOPMENT 
              PROGRAM.

    (a) In General.--Section 1036(d) of the Intermodal Surface 
Transportation Efficiency Act of 1991 (49 U.S.C. 309 note; 105 Stat. 
1986) is amended--
            (1) in paragraph (1) by striking ``the following'' and all 
        that follows through ``demonstration program.--For'' and 
        inserting ``for''; and
            (2) in paragraph (2) by striking subparagraph (A) and by 
        redesignating subparagraphs (B) and (C) as subparagraphs (A) 
        and (B), respectively.
    (b) Rescission of Funds.--Of the funds made available under the 
heading ``Federal Railroad Administration--Railroad Research and 
Development'' in the Department of Transportation and Related Agencies 
Appropriations Act, 1994 (Public Law 103-122), $20,000,000 is 
rescinded, to be derived from magnetic levitation research and analysis 
activities.

SEC. 8203. LOCAL RAIL FREIGHT ASSISTANCE.

    Section 22108(a)(3) of title 49, United States Code, is amended by 
striking ``under this subsection to the Secretary for any period after 
September 30, 1994'' and inserting in lieu thereof ``to the Secretary 
for any period after September 30, 1995''.
SEC. 8204. REDUCTION AND MODIFICATION OF BOATING SAFETY GRANTS.

    (a) Transfer of Amounts for State Boating Safety Programs.--
            (1) Transfers.--Section 4(b) of the Act of August 9, 1950 
        (16 U.S.C. 777c(b)), is amended to read as follows:
    ``(b)(1) Of the balance of each annual appropriation remaining 
after making the distribution under subsection (a), an amount equal to 
$40,000,000 for fiscal year 1996, $55,000,000 for fiscal year 1997, and 
$69,000,000 for each of fiscal years 1998 and 1999, shall, subject to 
paragraph (2), be used as follows:
            ``(A) A sum equal to $10,000,000 of the amount available 
        for each of fiscal years 1996 through 1999 shall be available 
        for use by the Secretary of the Interior for grants under 
        section 5604(c) of the Clean Vessel Act of 1992. Any portion of 
        such a sum available for a fiscal year that is not obligated 
        for those grants before the end of the following fiscal year 
        shall be transferred to the Secretary of Transportation and 
        shall be expended by the Secretary of Transportation for State 
        recreational boating safety programs under section 13106 of 
        title 46, United States Code.
            ``(B) A sum equal to $30,000,000 of the amount available 
        for fiscal year 1996, $45,000,000 of the amount available for 
        fiscal year 1997, and $59,000,000 of the amount available for 
        each of fiscal years 1998 and 1999, shall be transferred to the 
        Secretary of Transportation and shall be expended by the 
        Secretary of Transportation for State recreational boating 
        safety programs under section 13106 of title 46, United States 
        Code.
Any portion of such a sum available for a fiscal year that is not 
obligated for those grants before the end of the following fiscal year 
shall be transferred to the Secretary of Transportation and shall be 
expended by the Secretary of Transportation for State recreational 
boating safety programs under section 13106 of title 46, United States 
Code.
    ``(2)(A) The amount transferred under paragraph (1)(B) for a fiscal 
year shall be reduced by the lesser of--
            ``(i) the amount appropriated to the Secretary of 
        Transportation for that fiscal year to carry out
         the purposes of section 13106 of title 46, United States Code, 
from the Boat Safety Account in the Aquatic Resources Trust Fund 
established under section 9504 of the Internal Revenue Code of 1986; or
            ``(ii) $35,000,000; or
            ``(iii) for fiscal year 1996 only, $30,000,000.
    ``(B) The amount of any reduction under subparagraph (A) shall be 
apportioned among the several States under subsection (d) by the 
Secretary of the Interior.''.
            (2) Conforming amendment.--Section 5604(c)(1) of the Clean 
        Vessel Act of 1992 (33 U.S.C. 1322 note) is amended by striking 
        ``section 4(b)(2) of the Act of August 9, 1950 (16 U.S.C. 
        777c(b)(2), as amended by this Act)'' and inserting ``section 
        4(b)(1) of the Act of August 9, 1950 (16 U.S.C. 777c(b)(1))''.
            (3) Limitation on other distribution.--Notwithstanding any 
        other provision of law, for fiscal year 1996, of the amount 
        appropriated in accordance with section 3 of the Act of August 
        9, 1950 (16 U.S.C. 777b), $20,000,000 shall be excluded from 
        the total amount subject to the 18 percent calculation of 
        section 4(a) of such Act (16 U.S.C. 777c(a)).
    (b) Expenditure of Amounts for State Recreational Boating Safety 
Programs.--Section 13106 of title 46, United States Code, is amended--
            (1) in subsection (a)(1) by striking the first sentence and 
        inserting the following: ``Subject to paragraph (2), the 
        Secretary may expend under contracts with States under this 
        chapter in each fiscal year for State recreational boating 
        safety programs an amount equal to the sum of the amount 
        appropriated from the Boat Safety Account for that fiscal year 
        plus the amount transferred to the Secretary under section 
        4(b)(1) of the Act of August 9, 1950 (16 U.S.C. 777c(b)(1)) for 
        that fiscal year.''; and
            (2) by amending subsection (c) to read as follows:
    ``(c) For expenditure under this chapter for State recreational 
boating safety programs there are authorized to be appropriated to the 
Secretary of Transportation from the Boat Safety Account established 
under section 9504 of the Internal Revenue Code of 1986 (26 U.S.C. 
9504) not more than $35,000,000 each fiscal year.''.

        Subtitle D--Miscellaneous Transportation Program Reform
SEC. 8301. FEDERAL AID FOR MASS TRANSIT.

    (a) Reduced Federal Share.--
            (1) Comprehensive planning.--Section 5303(h)(5) of title 
        49, United States Code, is amended by striking ``80'' and 
        inserting ``50''.
            (2) Block grants.--Section 5307(e) of such title is amended 
        by striking ``80'' and inserting ``50''.
            (3) Discretionary grant program.--Section 5309(h) of such 
        title is amended by striking ``80'' and inserting ``50''.
            (4) Rural program.--Section 5311(g)(2) of such title is 
        amended by striking ``80'' and inserting ``50''.
            (5) Training programs.--Section 5312(c)(3) of such title is 
        amended by striking ``75'' and inserting ``50''.
            (6) National mass transportation institute.--Section 
        5315(d) of such title is amended by striking ``80'' and 
        inserting ``50''.
            (7) University research institutes.--Section 5316(f) of 
        such title is amended by inserting before the period at the end 
        the following: ``; except that the Federal share of the costs 
        of activities conducted with a grant under this section shall 
        be 50 percent''.
            (8) University transportation centers.--Section 
        5317(b)(5)(C) of such title is amended by striking ``80'' and 
        inserting ``50''.
            (9) Bicycle facilities.--Section 5319 of such title is 
        amended by striking ``90'' and inserting ``50''.
            (10) Suspended light rail system technology pilot 
        project.--Section 5320(i) of such title is amended by striking 
        ``80'' and inserting ``50''.
            (11) Acquisition of equipment under the clean air and 
        americans with disabilities acts.--Section 5323(i) of such 
        title is amended by striking ``90'' and inserting ``50''.
            (12) Project management oversight.--Section 5327(c)(3) of 
        such title is amended by striking ``the entire'' and inserting 
        ``50 percent of the''.
    (b) Elimination of Operating Assistance.--
            (1) Block grants.--Section 5307 of such title is amended--
                    (A) in subsection (b)(1) by striking ``improvement, 
                and operating'' and inserting ``and improvement'';
                    (B) in subsection (b)(2) by striking ``that cannot 
                be used to pay operating expenses under this section'';
                    (C) in subsection (e) by striking the second 
                sentence;
                    (D) by striking subsection (f);
                    (E) in subsection (g)(1) by striking ``(except a 
                project for operating expenses)''; and
                    (F) by redesignating subsections (g) through (n) as 
                subsections (f) through (m), respectively.
            (2) Transportation facilities to meet special needs.--
                    (A) In general.--Sections 5301(d) and 5310 of such 
                title are repealed.
                    (B) Conforming amendments.--Section 5338 of such 
                title is amended--
                            (i) in subsection (a) by striking ``5310,'' 
                        each place it appears (including the subsection 
                        heading); and
                            (ii) in subsection (j) by striking 
                        paragraph (2) and by redesignating paragraphs 
                        (3), (4), and (5) as paragraphs (2), (3), and 
                        (4), respectively.
            (3) Rural program.--Section 5311 of such title is amended--
                    (A) in subsection (b) by striking the parenthetical 
                phrase;
                    (B) in subsection (e) by striking ``(1)'' and by 
                striking paragraph (2);
                    (C) in subsection (f)(1)(D) by striking 
                ``operating'' and all that follows through ``user-side 
                subsidies, and'';
                    (D) in subsection (g)(2) by striking the second 
                sentence;
                    (E) by striking subsection (h); and
                    (F) by redesignating subsections (i) and (j) as 
                subsections (h) and (i), respectively.
            (4) Suspended light rail system technology pilot project.--
        Section 5320 of such title is amended--
                    (A) by striking the second sentence of subsection 
                (e); and
                    (B) in subsection (h)--
                            (i) by striking paragraph (2); and
                            (ii) by redesignating paragraphs (3) and 
                        (4) as paragraphs (2) and (3), respectively.

                   Subtitle E--Administrative Reform
SEC. 8401. REDUCTION IN OVERHEAD EXPENSES OF DEPARTMENT OF 
              TRANSPORTATION.

    (a) In General.--The amount obligated by the Department of 
Transportation during fiscal year 1996 for overhead expenses shall not 
exceed an amount sufficient to reduce outlays for such expenses during 
such fiscal year (as compared to such outlays during fiscal year 1995) 
by $498,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).
              TITLE IX--COMMUNITY AND REGIONAL DEVELOPMENT

                  Subtitle A--Housing Program Reforms

SEC. 9001. TERMINATION OF EXPANSION OF RURAL RENTAL HOUSING PROGRAM.

    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended 
by inserting after subsection (g) the following new subsection:
    ``(h) Prohibition of New Loans.--After the date of the enactment of 
the Restructuring a Limited Government Act, the Secretary may not make 
or insure, or enter into any commitment to make or insure, any loan 
under this section.''.

     Subtitle B--Community and Regional Development Program Reforms

SEC. 9101. ELIMINATION OF FUNDING FOR ENVIRONMENTAL RESEARCH PROGRAMS 
              OF TENNESSEE VALLEY AUTHORITY.

    For fiscal years beginning after September 30, 1995, no amounts may 
be appropriated to the Tennessee Valley Authority for activities of the 
Authority's environmental research center and national fertilizer 
research center.

SEC. 9102. ELIMINATION OF CDBG PROGRAM.

    (a) Repeal.--Title I of the Housing and Community Development Act 
of 1974 (42 U.S.C. 5301 et seq.) is hereby repealed.
    (b) Transition.--Any amounts appropriated to carry out title I of 
the Housing and Community Development Act of 1974 before the date of 
the enactment of this Act shall be used in accordance with the 
provisions of such title as in effect immediately before the enactment 
of this Act.

SEC. 9103. TERMINATION OF ECONOMIC DEVELOPMENT ADMINISTRATION.

    (a) In General.--The Economic Development Administration is 
terminated.
    (b) Repeal of Acts.--The Public Works and Economic Development Act 
of 1965 (42 U.S.C. 3121 et seq.) and the Local Public Works Capital 
Development and Investment Act of 1976 (42 U.S.C. 6701 et seq.) are 
repealed.
    (c) Conclusion of Outstanding Affairs.--
            (1) In general.--The Secretary of Commerce shall provide 
        for the conclusion of any outstanding affairs of the Economic 
        Development Administration, including matters affecting the 
        disposition of personnel.
            (2) Authority.--In carrying out this subsection, the 
        Secretary of Commerce may exercise any authority that was 
        provided to the Secretary under the Acts repealed by subsection 
        (b), as such Acts were in effect on the day before the 
        effective date of this section, and is necessary or appropriate 
        to administer and fulfill the terms of any grant, contract, 
        agreement, loan, obligation, debenture, or guarantee made by 
        the Secretary pursuant to such Acts.
    (d) Effect of Termination on Expenditure of Funds Already 
Received.--Nothing in this section may be construed to prevent the 
expenditure of any funds received from a grant or loan under the Acts 
repealed by subsection (b). Such funds shall be subject to such laws 
and regulations as applied to the funds on the day before the effective 
date of this section.
    (e) Economic Development Revolving Fund.--
            (1) Continuation to finish business.--The Economic 
        Development Revolving Fund established by section 203 of the 
        Public Works and Economic Development Act of 1965 (42 U.S.C. 
        3143) shall continue in existence for the following purposes:
                    (A) Collections and repayments.--To receive 
                collections and repayments in connection with
                 assistance extended under the Acts repealed by 
subsection (b).
                    (B) Payment of obligations.--To pay obligations and 
                make expenditures in connection with the Acts repealed 
                by subsection (b).
            (2) Termination of fund.--
                    (A) Certification.--When, in the discretion of the 
                Secretary of Commerce, the Economic Development 
                Revolving Fund is no longer necessary to carry out the 
                activities under paragraph (1), the Secretary of 
                Commerce shall certify to the Secretary of the Treasury 
                that the Economic Development Revolving Fund is no 
                longer necessary.
                    (B) Termination.--Upon receipt of the certification 
                under subparagraph (A), the Secretary of the Treasury 
                shall terminate the Economic Development Revolving Fund 
                and deposit into the general fund of the Treasury as 
                miscellaneous receipts any moneys remaining in the 
                Fund. The Secretary of the Treasury shall deposit into 
                the general fund of the Treasury any collections and 
                repayments made after the termination of the Economic 
                Development Revolving Fund in connection with the Acts 
                repealed by subsection (b).
    (f) Effective Date.--This section shall take effect on October 1, 
1995.

SEC. 9104. TERMINATION OF APPALACHIAN REGIONAL COMMISSION.

    (a) In General.--The Appalachian Regional Commission is terminated.
    (b) Repeal of Acts.--The Appalachian Regional Development Act of 
1965 (40 U.S.C. App. 1 et seq.) is repealed.
    (c) Conclusion of Outstanding Affairs.--
            (1) In general.--The President shall take such actions as 
        may be necessary and appropriate to conclude any outstanding 
        affairs of the Appalachian Regional Commission, including 
        matters affecting the disposition of personnel.
            (2) Authority.--In carrying out this subsection, the 
        President may exercise any authority that was provided to the 
        Appalachian Regional Commission under the Appalachian Regional 
        Development Act of 1965, as in effect on the day before the 
        effective date of this section, and is necessary or appropriate 
        to administer and fulfill the terms of any grant, contract, 
        loan, or other obligation entered into by the Appalachian 
        Regional Commission under such Act.
    (d) Expenditure of Funds.--Nothing in this section may be construed 
to prevent the expenditure of any funds received under the Appalachian 
Regional Development Act of 1965. Such funds shall be subject to such 
laws and regulations as applied to the funds on the day before the 
effective date of this section.
    (e) Effective Date.--This section shall take effect on October 1, 
1995.
SEC. 9105. ELIMINATION OF RURAL DEVELOPMENT LOAN AND GRANT PROGRAMS.

    (a) Repeal of the Rural Electrification Act of 1936.--The Rural 
Electrification Act of 1936 (7 U.S.C. 901-950b) is hereby repealed.
    (b) Elimination of Certain Programs Under the Consolidated Farm and 
Rural Development Act.--
            (1) Section 304 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1924) is amended by striking 
        subsection (b).
            (2) Section 306 of such Act (7 U.S.C. 1926) is hereby 
        repealed.
            (3) Section 306A of such Act (7 U.S.C. 1926a) is hereby 
        repealed.
            (4) Section 306B of such Act (7 U.S.C. 1926b) is hereby 
        repealed.
            (5) Section 306C of such Act (7 U.S.C. 1926c) is hereby 
        repealed.
            (6) Section 310B of such Act (7 U.S.C. 1932) is hereby 
        repealed.
            (7) Section 312(a) of such Act (7 U.S.C. 1942(a)) is 
        amended in the 1st sentence--
                    (A) by striking clauses (5), (6), (8), (11), (12), 
                and (13);
                    (B) by adding ``or'' at the end of clause (9);
                    (C) by striking the comma at the end of clause (10) 
                and inserting a period; and
                    (D) by redesignating clauses (7), (9), and (10) as 
                clauses (5), (6), and (7), respectively.
            (8) Section 312 of such Act (7 U.S.C. 1942) is amended by 
        striking subsections (b), (c), and (d) and redesignating 
        subsection (e) as subsection (b).
    (c) Elimination of Certain Programs Under the Food, Agriculture, 
Conservation, and Trade Act of 1990.--
            (1) Subtitle B of title XXIII of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 2007-2007e) is 
        hereby repealed.
            (2) Section 2322 of such Act (7 U.S.C. 1926-1) is hereby 
        repealed.
            (3) Section 2324 of such Act (7 U.S.C. 1926 note) is hereby 
        repealed.
            (4) Section 2326 of such Act (7 U.S.C. 1926b note) is 
        amended by striking subsection (b).
            (5) Subtitle D of title XXIII of such Act (7 U.S.C. 950aaa-
        950aaa-4 and 1932 note) is hereby repealed.
    (d) Elimination of Certain Program Under the Food Security Act of 
1985.--Section 1323 of the Food Security Act of 1985 (7 U.S.C. 1932 
note) is hereby repealed.
    (e) Conforming Amendments.--
            (1) Consolidated farm and rural development act 
        amendments.--
                    (A) Section 307(a)(3) of the Consolidated Farm and 
                Rural Development Act (7 U.S.C. 1927(a)(3)) is 
                amended--
                            (i) in subparagraph (A), by striking ``and 
                        essential community facilities''; and
                            (ii) by striking subparagraph (C).
                    (B) Section 307(a) of such Act (7 U.S.C. 1927(a)) 
                is amended by striking paragraph (4).
                    (C) Section 307(a)(5) of such Act (7 U.S.C. 
                1927(a)(5)) is amended--
                            (i) by striking ``(A) Except as provided in 
                        subparagraph (B), the'' and inserting ``The''; 
                        and
                            (ii) by striking subparagraph (B).
                    (D) Section 307(a)(6)(B) of such Act (7 U.S.C. 
                1927(a)(6)(B)) is amended--
                            (i) by adding ``and'' at the end of clause 
                        (i);
                            (ii) by striking clauses (ii) through (vi); 
                        and
                            (iii) by redesignating clause (vii) as 
                        clause (ii).
                    (E) Section 307(c) of such Act (7 U.S.C. 1927(c)) 
                is amended by striking ``, and for obligations in 
                connection with loans to associations under section 
                306, shall take liens on the facility or such other 
                security as he may determine to be necessary''.
                    (F) Section 309(g)(1) of such Act (7 U.S.C. 
                1929(g)(1)) is amended by striking ``the last sentence 
                of section 306(a)(1),''.
                    (G) Section 309A(a) of such Act (7 U.S.C. 1929a(a)) 
                is amended by inserting ``(as such
                 sections were in effect before the effective date of 
the Restructuring a Limited Government Act),'' after ``312(b),''.
                    (H) Section 309A(g) of such Act (7 U.S.C. 1930(g)) 
                is amended--
                            (i) by striking paragraph (1); and
                            (ii) in paragraph (8), by striking ``make 
                        grants under sections 306(a) and 310B of this 
                        title,''.
                    (I) Section 310A of such Act (7 U.S.C. 1931) is 
                amended by striking ``, the last sentence of section 
                306(a)(1),''.
                    (J) Section 316(a) of such Act (7 U.S.C. 1946(a)) 
                is amended by striking paragraph (3).
                    (K) Section 317 of such Act (7 U.S.C. 1947) is 
                amended by striking ``(except section 312(b))''.
                    (L) Section 333A(a) of such Act (7 U.S.C. 1983a(a)) 
                is amended by striking paragraph (4).
                    (M) Section 344 of such Act (7 U.S.C. 1994) is 
                hereby repealed.
                    (N) Section 353A of such Act (7 U.S.C. 2001a) is 
                amended by inserting ``(as in effect before the 
                effective date of the Restructuring a Limited 
                Government Act)'' before the period.
                    (O) Section 365 of such Act (7 U.S.C. 2008) is 
                hereby repealed.
                    (P) Section 366 of such Act (7 U.S.C. 2008a) is 
                hereby repealed.
                    (Q) Section 367 of such Act (7 U.S.C. 2008b) is 
                hereby repealed.
                    (R) Section 368 of such Act (7 U.S.C. 2008b) is 
                hereby repealed.
            (2) Department of agriculture reorganization act of 1994 
        amendments.--
                    (A) Section 233(b) of the Department of Agriculture 
                Reorganization Act of 1994 (7 U.S.C. 6943(b)) is 
                amended by striking paragraph (2) and redesignating 
                paragraph (3) as paragraph (2).
                    (B) Section 234(b) of such Act (7 U.S.C. 6944(b)) 
                is amended by striking paragraphs (1) and (3) and 
                redesignating paragraphs (2), (4), and (5) as 
                paragraphs (1) through (3), respectively.
            (3) Cooperative forestry assistance act of 1978 
        amendment.--Section 10(b)(3) of the Cooperative Forestry 
        Assistance Act of 1978 (7 U.S.C. 2106(b)(3)) is amended by 
        inserting ``, as in effect before the effective date of the 
        Restructuring a Limited Government Act'' before the period.
            (4) Agricultural act of 1970 amendment.--Section 901(b) of 
        the Agricultural Act of 1970 (42 U.S.C. 3122(b)) is amended by 
        inserting ``, as in effect before the effective date of the 
        Restructuring a Limited Government Act'' before the period.
            (5) Robert t. stafford disaster relief and emergency 
        assistance act amendments.--Section 310(a) of the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5153(a)) is amended by striking paragraph (4) and 
        redesignating paragraphs (5) through (7) as paragraphs (4) 
        through (6), respectively.
    (f) No Effect on Existing Contracts and Obligations.--The 
amendments made by this section shall not be construed to affect any 
right, power, or duty granted pursuant to any contract entered into or 
obligation made before the effective date of this Act.
    (g) Sale of Outstanding Rural Development Loans.--
            (1) In general.--Notwithstanding any other provision of 
        law, not later than the end of the 3-year period that begins 
        with the effective date of this Act, the Secretary of 
        Agriculture shall sell to private investors all interests of 
        the United States in all qualified loans made before such 
        effective date that are outstanding at the time of the sale, 
        for cash only, on the most favorable terms to the Federal 
        Government that are then obtainable.
            (2) Qualified loan defined.--As used in paragraph (1), the 
        term ``qualified loan'' means a loan made or insured under--
                    (A) the Rural Electrification Act of 1936 (as in 
                effect before the effective date of this Act);
                    (B) section 304(b), 306, 306C, 310B, or clause (5), 
                (6), (8), (11), (12), or (13) of subsection (a), or 
                subsection (b) or (c), of section 312, of the 
                Consolidated Farm and Rural Development Act (as so in 
                effect); or
                    (C) subtitle B of title XXIII, or section 2322 or 
                2324, of the Food, Agriculture, Conservation, and Trade 
                Act of 1990 (as so in effect).

                   Subtitle C--Administrative Reforms

SEC. 9201. OPERATION OF INDIAN PROGRAMS.

    Amounts made available for the operation of Indian programs for 
fiscal years 1996 through 2000 may not exceed $1,443,244,000 for each 
of such fiscal years. For the purposes of this section, the term 
``operation of Indian programs'' means those programs, projects, and 
activities for which amounts were appropriated for fiscal year 1995 
under the appropriations account numbered 14-2100-0-1-999, as adjusted 
under item 90.00 (relating to adjustments to gross budget authority and 
outlays).

SEC. 9202. BUREAU OF INDIAN AFFAIRS CONSTRUCTION.

    Amounts appropriated for construction with respect to the Bureau of 
Indian Affairs for fiscal years 1996 through 2000 may not exceed 
$83,111,000 for each of such fiscal years. For the purposes of this 
section, the term ``construction with respect to the Bureau of Indian 
Affairs'' means those programs, projects, and activities for which 
amounts were appropriated for fiscal year 1995 under the appropriations 
account numbered 14-2301-0-1-452 and identified as budget authority 
under item 40.00.
                    TITLE X--EDUCATION AND TRAINING

                    Subtitle A--Job Training Reform

SEC. 10001. SHORT TITLE.

    This subtitle may be cited as the ``Employment Enhancement Reform 
Act''.

                   CHAPTER 1--BLOCK GRANTS TO STATES

SEC. 10011. STATEMENT OF PURPOSE.

  It is the purpose of this chapter to establish a block grant program 
to prepare individuals for employment in the labor force by increasing 
their occupational and educational skills, resulting in improved long-
term employability, increased employment and earnings, and reduced 
welfare dependency.

SEC. 10012. AUTHORIZATION.

    (a) Grants to States.--The Secretary of Labor may provide grants to 
States for the purpose of providing employment assistance to eligible 
individuals in such States in accordance with this chapter.
    (b) Grants to Indian Tribes and Migrant and Seasonal Farmworker 
Organizations.--Not more than 5 percent of the amount appropriated to 
carry out this chapter for a fiscal year may be used by the Secretary 
to provide grants to Indian tribes and migrant and seasonal farmworker 
organizations for the purpose of providing employment assistance to 
Native Americans and migrant and seasonal farmworkers in accordance 
with this subchapter.
    (c) Period of Grants.--A grant received under subsection (a) or 
(b), as the case may be, may extend for a period of not more than 5 
fiscal years. The payments under such grant shall be subject to annual 
approval of the Secretary and the availability of appropriations for 
each fiscal year.

SEC. 10013. ALLOCATION.

    In providing grants to States under section 10012 for a fiscal 
year, the Secretary shall, to the extent practicable, allocate the 
amount appropriated for such fiscal year as follows:
            (1) 33\1/3\ percent shall be allocated on the basis of the 
        relative number of unemployed individuals residing in areas of 
        substantial unemployment within each State as compared to the 
        total number of such unemployed individuals in all such areas 
        of substantial unemployment in all States.
            (2) 33\1/3\ percent shall be allocated on the basis of the 
        relative excess number of unemployed individuals within each 
        State as compared to the total excess number of unemployed 
        individuals in all States.
            (3) 33\1/3\ percent shall be allocated on the basis of the 
        relative number of economically disadvantaged adults within 
        each State as compared to the total number of economically 
        disadvantaged adults in all States.

SEC. 10014. APPLICATION.

    The Secretary may provide a grant to a State under section 10012 
only if such State submits to the Secretary an application which 
contains such information as the Secretary may reasonably require, 
including a description of the program to be established by the State 
under section 10015.

SEC. 10015. USE OF AMOUNTS.

    (a) Establishment of Employment Assistance Program.--
            (1) In general.--The Secretary may provide a grant to a 
        State under section 10012 only if such State agrees that it 
        will use all amounts received from such grant to establish a 
        program to provide employment assistance to eligible 
        individuals described in paragraph (2).
            (2) Eligible individuals.--An individual shall be eligible 
        to receive employment assistance under the program if such 
        individual--
                    (A) has attained the age of 14 and is economically 
                disadvantaged;
                    (B)(i) has been terminated or laid off or who has 
                received a notice of termination or layoff from 
                employment, is eligible for or has exhausted 
                entitlement to unemployment compensation, and is 
                unlikely to return to the individual's previous 
                industry or occupation;
                    (ii) has been terminated, has received notice of 
                termination, or has reason to believe that such 
                individual will be terminated or receive notice of 
                termination or lay off from employment, as a result of 
                any permanent closure of or any substantial layoff at a 
                plant, facility, or enterprise; or
                    (iii) was self-employed (including farmers and 
                ranchers) and is unemployed as a result of general 
                economic conditions in the community in which the 
                individual resides or because of natural disasters, 
                subject to regulations prescribed by the Secretary;
                    (C) is an individual with a disability;
                    (D) is a member of the Armed Forces who is being 
                separated under other than adverse conditions;
                    (E) is a veteran who is unemployed; or
                    (F) is a displaced homemaker.
    (b) Conduct of Program.--In carrying out the program described in 
subsection (a), the State shall meet the following requirements:
            (1)(A) The State shall ensure the profiling and evaluation 
        of eligible individuals for the purpose of determining the 
        amount of employment assistance services, including, subject to 
        subparagraph (B), the amount of supportive services, if 
        appropriate, to be provided to such individuals. In profiling 
        and evaluating such individuals, the State shall classify 
        individuals in 1 of the following 3 categories:
                    (i) Job-ready and in need of placement services.
                    (ii) Job-ready and in need of remedial skills 
                enhancement.
                    (iii) Non-job-ready and in need of remedial 
                education.
            (B) The State shall ensure that eligible individuals 
        receive information relating to the provision of supportive 
        services from sources other than under this subchapter for the 
        purpose of participating in the program under this subchapter.
            (2) The State shall provide appropriate employment 
        assistance services to eligible individuals based upon the 
        classification of the individual in the categories described in 
        clauses (i) through (iii) of paragraph (1)(A). Such assistance 
        may not be used to provide stipends or direct payments to 
        individuals for participation in the program, including 
        payments for supportive services, except that such assistance 
        may include payments for transportation costs, based on need, 
        of such individuals for participation in the program.
            (3) The State shall monitor the rate at which individuals 
        in the program successfully obtain employment after separation 
        from the program in accordance with the following criteria:
                    (A) With respect to individuals classified in the 
                category described in paragraph (1)(A)(i), employment 
                for a period of not less than 6 months under which--
                            (i) the individual works an average of at 
                        least 35 hours per week; and
                            (ii) the individual receives wages equal to 
                        not less than 65 percent of the average wages 
                        received for employment during the 2-year 
                        period ending on the date of enrollment in the 
                        program.
                    (B) With respect to individuals classified in the 
                category described in paragraph (1)(A)(ii)--
                            (i) demonstration of proficiency of those 
                        skill areas of the individual assessed as 
                        deficient; and
                            (ii) employment for a period of not less 
                        than 6 months in accordance with the 
                        requirements described in subparagraph (A).
                    (C) With respect to individuals classified in the 
                category described in paragraph (1)(A)(iii)--
                            (i) demonstration of proficiency in 
                        education and skills commensurate with a high 
                        school degree; and
                            (ii) employment for a period of not less 
                        than 6 months in accordance with the 
                        requirements described in subparagraph (A).
            (4) The State shall, to the extent practicable, establish 
        one-stop-shop centers throughout the State at which eligible 
        individuals are provided information on the various types of 
        employment assistance services available under the program and 
        at which such individuals are profiled and evaluated in 
        accordance with paragraph (1)(A).
    (c) Discretionary Activities.--In carrying out the program 
described in subsection (a), the State may carry out the following 
activities:
            (1) The State may allow eligible individuals to participate 
        in education and job search activities for non-traditional 
        employment.
            (2) The State may establish a State employment coordinating 
        council (or designate a similar existing council) which will--
                    (A) study the emerging economic and employment 
                trends, job creation opportunities, and other 
                employment and job training needs of individuals in the 
                State;
                    (B) based upon the study conducted under 
                subparagraph (A), propose additional appropriate 
                activities to be carried out under the program; and
                    (C) report the results of the study conducted under 
                subparagraph (A) and the proposed additional 
                appropriate activities under subparagraph (B) to--
                            (i) the State agency responsible for 
                        carrying out the program;
                            (ii) the Governor; and
                            (iii) the State legislature.

SEC. 10016. REPORTS.

    (a) Report to the Secretary.--Not later than 1 year after the date 
on which a State receives amounts from a grant under section 10012, and 
in each subsequent fiscal year in which the State receives amounts from 
such grant, the State shall submit to the Secretary a report 
containing--
            (1) the total number of individuals who applied for 
        participation in the program in the fiscal year;
            (2) the total number of individuals enrolled in the program 
        in the fiscal year and the total number of individuals who have 
        re-enrolled in the program for such fiscal year;
            (3) the period of time spent in the program by individuals 
        who have separated from the program and the rate at which such 
        individuals successfully obtained employment after such 
        separation in accordance with the criteria described in 
        subparagraphs (A) through (C) of section 10015(b)(3); and
            (4) any other appropriate information requested by the 
        Secretary.
    (b) Report to Congress.--The Secretary shall annually submit to the 
Congress a report containing--
            (1) a compilation of the information contained in the 
        reports received by the Secretary under subsection (a); and
            (2) an evaluation of the block grant program under this 
        subchapter.

SEC. 10017. REDUCTION OR TERMINATION OF PAYMENTS UNDER GRANT.

    (a) Determination of Success in Placing Individuals in 
Employment.--
            (1) In general.--The Secretary shall determine, based upon 
        the information contained in the reports submitted by a State 
        under section 10016(a), whether or not the State has been 
        successful in placing individuals in employment during each 2-
        year period under the program.
            (2) Criteria.--In making a determination under paragraph 
        (1), the Secretary shall take into consideration appropriate 
        criteria, including the general economic conditions of the 
        State during the 2-year period referred to in such paragraph.
    (b) Reduction or Termination of Payments.--If the Secretary 
determines under subsection (a) that a State has not been successful in 
placing individuals in employment during any 2-year period under the 
program, the Secretary may--
            (1) reduce the amount of payments under the grant to such 
        State for subsequent fiscal years; or
            (2) terminate payments under the grant to such State.
    (c) Continuation of Payments.--The Secretary may reinstate payments 
or increase payments under a grant with respect to a State that the 
Secretary has determined under subsection (a) has not been successful 
in placing individuals in employment in accordance with subsection (b), 
if the Secretary subsequently determines that such State has 
implemented appropriate modifications to the program.

SEC. 10018. DEFINITIONS.

    For the purposes of this chapter, the following definitions apply:
            (1) Area of substantial unemployment.--The term ``area of 
        substantial unemployment'' means any area which has an average 
        rate of unemployment of at least 6.5 percent for the most 
        recent twelve months as determined by the Secretary. 
        Determinations of areas of substantial unemployment shall be 
        made once each fiscal year.
            (2) Economically disadvantaged.--The term ``economically 
        disadvantaged'' means an individual who--
                    (A) receives, or is a member of a family which 
                receives, cash welfare payments under a Federal, State, 
                or local welfare program;
                    (B) has, or is a member of a family which has, 
                received a total family income for the six-month period 
                prior to application for the program involved 
                (exclusive of unemployment compensation, child support 
                payments, and welfare payments) which, in relation to 
                family size, was not in excess of the higher of--
                            (i) the official poverty line (as defined 
                        by the Office of Management and Budget, and 
                        revised annually in accordance with section 
                        673(2) of the Omnibus Budget Reconciliation Act 
                        of 1981 (42 U.S.C. 9902(2)); or
                            (ii) 70 percent of the lower living 
                        standard income level;
                    (C) is receiving (or has been determined within the 
                6-month period prior to the application for the program 
                involved to be eligible to receive) food stamps 
                pursuant to the Food Stamp Act of 1977;
                    (D) qualifies as a homeless individual under 
                subsections (a) and (c) of section 103 of the Stewart 
                B. McKinney Homeless Assistance Act;
                    (E) is a foster child on behalf of whom State or 
                local government payments are made;
                    (F) in cases permitted by regulations of the 
                Secretary, is an individual with a disability whose own 
                income meets the requirements of subparagraph (A) or 
                (B), but who is a member of a family whose income does 
                not meet such requirements; or
                    (G) is an individual meeting appropriate criteria 
                approved by the State.
            (3) Individual with a disability.--The term ``individual 
        with a disability'' means an individual who has a physical or 
        mental disability which for such individual constitutes or 
        results in a substantial handicap to employment.
            (4) Low-income level.--The term ``low-income level'' means 
        $7,000 with respect to income in 1969, and for any later year 
        means that amount which bears the same relationship to $7,000 
        as the Consumer Price Index for that year bears to the Consumer 
        Price Index for 1969, rounded to the nearest $1,000.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Labor.
            (6) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, 
        American Samoa, Guam, the Virgin Islands, the Federated States 
        of Micronesia, the Republic of the Marshall Islands, and the 
        Republic of Palau.
            (7) Unemployed individuals.--The term ``unemployed 
        individuals'' means individuals who are without jobs and who 
        want and are available for work. The determination of whether 
        individuals are without jobs shall be made in accordance with 
        the criteria used by the Bureau of Labor Statistics of the 
        Department of Labor in defining individuals as unemployed.
            (8) Veteran.--The term ``veteran'' means an individual who 
        served in the active military, naval, or air service, and who 
        was discharged or released therefrom under conditions other 
        than dishonorable.
            (9) Vocational education.--The term ``vocational 
        education'' means organized educational programs offering a 
        sequence of courses which are directly related to the 
        preparation of individuals in paid or unpaid employment in 
        current or emerging occupations requiring other than a 
        baccalaureate or advanced degree. Such programs shall include 
        competency-based applied learning which contributes to an 
        individual's academic knowledge, higher-order reasoning, and 
        problem-solving skills, work attitudes, general employability 
        skills, and the occupational-specific skills necessary for 
        economic independence as a productive and contributing member 
        of society. Such term also includes applied technology 
        education.
          (10) Displaced homemaker.--The term ``displaced homemaker'' 
        means an individual who has been providing unpaid services to 
        family members in the home and who--
                  (A) has been dependent either--
                          (i) on public assistance and whose youngest 
                        child is within 2 years of losing eligibility 
                        under part A of title IV of the Social Security 
                        Act (42 U.S.C. 601 et seq.); or
                          (ii) on the income of another family member 
                        but is no longer supported by that income; and
                  (B) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or upgrading 
                employment.
            (11) Nontraditional employment.--The term ``nontraditional 
        employment'' means occupations or fields of work where women or 
        men, as the case may be, comprise less than 25 percent of the 
        individuals employed in such occupation or field of work.

SEC. 10019. TRANSFER OF FUNDS.

    Notwithstanding any other provision of law, any amounts 
appropriated to carry out any provision of law specified in part 2 of 
chapter 2 which are not obligated or expended on or after the end of 
the first fiscal year beginning after the date of the enactment of this 
subchapter shall be made available to carry out this subchapter.

SEC. 10020. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this chapter $8,000,000,000 for each of the fiscal years 1997 
through 2001.
    (b) Availability.--Amounts appropriated pursuant to the 
authorization of appropriations in subsection (a) are authorized to 
remain available until expended.

   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.

    The Stewart B. McKinney Homeless Assistance Act (Public Law 100-77) 
is amended by striking section 612 (relating to homeless individuals 
with chronic mental illness).

SEC. 10032. CERTAIN EMPLOYMENT-RELATED PROGRAMS UNDER REHABILITATION 
              ACT OF 1973.

    (a) Supported Employment for Individuals With Most Severe 
Disabilities.--Section 101(a) of the Rehabilitation Act of 1973 (29 
U.S.C. 721(a)) is amended--
            (1) in paragraph (5), by amending subparagraph (B) to read 
        as follows:
    ``(B) provide satisfactory assurances to the Commissioner that the 
State has studied and considered a broad variety of means for providing 
services to individuals with the most severe disabilities, including 
the provision of services leading to supported employment; and''; and
            (2) by amending paragraph (25) to read as follows:
    ``(25) provide assurances satisfactory to the Secretary that the 
State has an acceptable plan for developing a collaborative program 
with appropriate entities to provide supported employment services for 
individuals with the most severe disabilities who require supported 
employment services to enter or retain competitive employment;''.
    (b) Special Recreation Activities and Services.--
            (1) In general.--Section 101(a)(12) of the Rehabilitation 
        Act of 1973 (29 U.S.C. 721(a)(12)) is amended--
                    (A) in subparagraph (A), by striking ``and'' after 
                the semicolon at the end;
                    (B) in subparagraph (B), by adding ``and'' after 
                the semicolon at the end; and
                    (C) by adding at the end the following 
                subparagraph:
    ``(C) provide for entering into agreements with the operators of 
community rehabilitation programs or to make awards of grants or 
contracts to nonprofit private organizations, for the provision of 
special recreation activities and services, that are, whenever 
possible, provided in settings with peers who are not individuals with 
disabilities;''.
            (2) Scope of services.--Section 103(a) of the 
        Rehabilitation Act of 1973 (29 U.S.C. 723(a)) is amended--
                    (A) in paragraph (15), by striking ``and'' after 
                the semicolon at the end;
                    (B) in paragraph (16), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following paragraph:
            ``(17) special recreation activities and services.''.
    (c) Projects With Industry.--Section 101(a) of the Rehabilitation 
Act of 1973 (29 U.S.C. 721(a)) is amended--
            (1) in paragraph (35), by striking ``and'' after the 
        semicolon at the end;
            (2) in paragraph (36), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following paragraph:
    ``(37) provide satisfactory assurances to the Commissioner that the 
State has awarded grants to individual employers, community 
rehabilitation program providers, labor unions, trade associations, 
Indian tribes, tribal organizations, designated States units, and other 
entities that are jointly financed to create and expand job and career 
opportunities for individuals with disabilities, which provide training 
in realistic work settings, job placements, development and 
modification of jobs and career opportunities, and distribution of 
rehabilitation technology, including necessary support services.''.
    (d) Definitions.--Section 7 of the Rehabilitation Act of 1973 (29 
U.S.C. 706) is amended by adding at the end the following paragraph:
    ``(36) The term `special recreation activities and services' means 
activities and services that provide individuals with disabilities with 
recreational activities and related experiences to aid in the 
employment, mobility, socialization, independence, and community 
integration of such individuals. These may include, but are not limited 
to, vocational skills development, leisure education, leisure 
networking, leisure resource development, physical education and 
sports, scouting and camping, 4-H activities, music, dancing, 
handicrafts, art, and homemaking.''.
    (e) Conforming Provisions.--
            (1) Repeals.--The Rehabilitation Act of 1973 (29 U.S.C. 701 
        et seq.) is amended by striking the following provisions:
                    (A) Subsection (c) of section 311.
                    (B) Section 316.
                    (C) Parts B and C of title VI.
            (2) Funding.--Section 100(b)(1) of the Rehabilitation Act 
        of 1973 (29 U.S.C. 720(b)(1)) is amended by adding at the end 
        the following: ``(For fiscal year 1996, in determining the 
        amount to be appropriated under the preceding sentence, the 
        amount appropriated for fiscal year 1995 under this subsection 
        is deemed to be the sum of the aggregate amount appropriated 
        for carrying out section 311(c), section 316, and parts B and C 
        of title VI and the amount actually appropriated under this 
        subsection for fiscal year 1994.)''.
            (3) Redesignations; cross-references.--The Rehabilitation 
        Act of 1973 (29 U.S.C. 701 et seq.) is amended--
                    (A) in section 101(a)(5)(A), by striking 
                ``including individuals served under part C of title VI 
                of this Act'';
                    (B) in section 310, by striking ``sections 311(d), 
                311(e), 312, and 316'' and inserting ``sections 311(c), 
                311(d), and 312'';
                    (C) in section 311, by redesignating subsections 
                (d) through (f) as subsections (c) through (e), 
                respectively;
                    (D) in title VI, by redesignating part D as part B; 
                and
                    (E) in section 802(j)--
                            (i) in paragraph (1), by striking 
                        ``Consistent with'' and all that follows 
                        through ``the Commissioner may'' and inserting 
                        ``The Commissioner may''; and
                            (ii) in paragraph (3)(B), by striking 
                        clause (ii) and redesignating clauses (iii) 
                        through (vi) as clauses (ii) through (v), 
                        respectively.
                       PART 2--REPEAL OF PROGRAMS

SEC. 10041. HIGHER EDUCATION FOR STUDENTS FROM MIGRANT AND SEASONAL 
              FARMWORKER FAMILIES.

    Subpart 5 of part A of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070d-2) is repealed.
SEC. 10042. CERTAIN VETERANS PROGRAMS.

    (a) Disabled Veterans Outreach Program and Local Veterans 
Employment Representative Program.--Sections 4103A, 4104, and 4104A of 
title 38, United States Code, are repealed.
    (b) Homeless Veterans Reintegration Project.--Section 738 of Public 
Law 100-77 (42 U.S.C. 11448) is repealed.
    (c) Conforming Amendments.--(1) Section 3117(a)(2) of title 38, 
United States Code, is amended--
            (A) by striking subparagraph (B) and redesignating 
        subparagraph (C) as subparagraph (B); and
            (B) by inserting ``and'' after the semicolon at the end of 
        subparagraph (A).
    (2) Section 3672(d) of title 38, United States Code, is amended by 
striking ``and shall utilize'' and all that follows through the end 
thereof and inserting in lieu thereof a period.
    (3) Section 4102A(b) of title 38, United States Code, is amended--
            (A) by inserting ``and'' at the end of paragraph (4);
            (B) by striking paragraphs (5) and (7) of subsection (b);
            (C) by redesignating paragraph (6) as paragraph (5) and in 
        that paragraph by striking ``; and'' and inserting a period; 
        and
            (D) by striking subsection (c).
    (4) Section 4106(a) of title 38, United States Code, is amended--
            (A) in the fifth sentence--
                    (i) by striking ``in all of the States for the 
                purposes specified in paragraph (5) of section 4102A(b) 
                of this title and''; and
                    (ii) by striking ``sections.'' and inserting 
                ``section.''; and
            (B) in the sixth sentence, by striking ``and of the 
        proposed numbers, by State, of disabled veterans' outreach 
        program specialists appointed under section 4103A of this title 
        and local veterans' employment representatives assigned under 
        section 4104 of this title,''.
    (5) Section 4107(c) of title 38, United States Code, is amended--
            (A) by inserting ``and'' at the end of paragraph (3);
            (B) by striking paragraph (4);
            (C) by redesignating paragraph (5) as paragraph (4) and in 
        that paragraph--
                    (i) by striking ``including an evaluation of the 
                effectiveness of such programs during such program year 
                in meeting the requirements of section 4102A(b) of this 
                title,''; and
                    (ii) by striking ``(including'' and all that 
                follows through ``representatives)''.
    (6) Section 739(b) of Public Law 100-77 (42 U.S.C. 11449) is 
amended by striking ``other than section 738 and for the program under 
section 738''.
    (7) The table of sections for chapter 41 of title 38, United States 
Code, is amended by striking the items relating to sections 4103A, 
4104, and 4104A.

SEC. 10043. FOSTER GRANDPARENT AND SENIOR COMPANION PROGRAMS AND 
              PROGRAMS UNDER OLDER AMERICANS ACT OF 1965.

    (a) Foster Grandparent and Senior Companion Programs.--The Domestic 
Volunteer Service Act (42 U.S.C. 4950 et seq.) is amended--
            (1) in section 200--
                    (A) in paragraph (1) by inserting ``and'' at the 
                end,
                    (B) in paragraph (2) by striking the semicolon at 
                the end and inserting a period, and
                    (C) by striking paragraphs (3) and (4),
            (2) in title II--
                    (A) by striking parts B and C, and
                    (B) in part D--
                            (i) by redesignating such part as part B,
                            (ii) in sections 221 and 225 by striking 
                        ``parts A, B, and C'' each place it appears and 
                        inserting ``part A'', and
                            (iii) by redesignating part E as part C,
            (3) in section 416(f)(2) by striking ``parts (B) and'' and 
        inserting ``part'',
            (4) in section 421--
                    (A) by striking paragraphs (9), (10), (17), and 
                (18), and
                    (B) in paragraph (14) by striking ``(B), (C), and 
                (E)'' and inserting ``and (C)'',
            (5) in section 502--
                    (A) by striking subsections (b) and (c), and
                    (B) in subsection (d)--
                            (i) by striking ``part E'' and inserting 
                        ``part C'', and
                            (ii) by redesignating such subsection as 
                        subsection (c), and
            (6) in section 503(d) by striking ``part E'' and inserting 
        ``part C''.
    (b) Amendment to the Older Americans Act of 1965.--Title V of the 
Older Americans Act of 1965 (42 U.S.C. 3056-3056i) is repealed.

SEC. 10044. JOB TRAINING PARTNERSHIP ACT.

    (a) In General.--The Job Training Partnership Act (29 U.S.C. 1501 
et seq.), except sections 421 through 439 of such Act (29 U.S.C. 1691 
et seq.) (relating to the Job Corps), is hereby repealed.
    (b) Conforming Amendments to Job Corps.--The Job Training 
Partnership Act (29 U.S.C. 1501 et seq.) is amended--
            (1) by redesignating sections 421 through 439 as sections 1 
        through 20, respectively;
            (2) in section 1 (as redesignated), by striking ``part'' 
        each place it appears and inserting ``Act'';
            (3) in section 3(4) (as redesignated), by striking 
        ``sections 424 and 425'' and inserting ``sections 4 and 5'';
            (4) in section 4 (as redesignated)--
                    (A) in subsection (a), by striking ``entities 
                administering programs under title II of this Act,''; 
                and
                    (B) in subsection (b), by striking ``part'' and 
                inserting ``Act'';
            (5) in section 6 (as redesignated)--
                    (A) in subsection (a), by striking ``section 428'' 
                and inserting ``section 8''; and
                    (B) by striking subsection (d);
            (6) in section 7 (as redesignated)--
                    (A) by striking subsection (b); and
                    (B) by redesignating subsection (c) as subsection 
                (b);
            (7) in section 13 (as redesignated)--
                    (A) in subsection (a)(4), by striking ``part'' and 
                inserting ``Act'';
                    (B) in subsection (c)(1), by striking ``and 
                activities authorized under sections 452 and 453''; and
                    (C) in subsection (e), by striking ``section 431'' 
                and inserting ``section 11'';
            (8) in section 14 (as redesignated)--
                    (A) in subsection (a)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``section 427'' and inserting 
                        ``section 7''; and
                            (ii) in paragraph 4(A), by striking 
                        ``section 428'' and inserting ``section 8'';
                    (B) in subsection (c)(3), by striking ``section 
                423'' and inserting ``section 3'';
                    (C) in subsection (d), by striking ``sections 424 
                and 425'' and inserting ``sections 4 and 5''; and
                    (D) in subsection (e), by striking ``, pursuant to 
                section 452(d),'';
            (9) in section 16 (as redesignated), by striking ``part'' 
        each place it appears and inserting ``Act'';
            (10) in section 19 (as redesignated), by striking ``part'' 
        each place it appears and inserting ``Act'';
            (11) in section 20 (as redesignated), by striking ``part'' 
        and inserting ``Act''; and
            (12) by adding at the end the following new section:

``SEC. 21. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this Act--
            ``(1) $1,098,000,000 for fiscal year 1997;
            ``(2) $1,128,000,000 for fiscal year 1998;
            ``(3) $1,158,000,000 for fiscal year 1999;
            ``(4) $1,189,000,000 for fiscal year 2000; and
            ``(5) $1,221,000,000 for fiscal year 2001.''.

SEC. 10045. APPALACHIAN VOCATIONAL AND OTHER EDUCATION FACILITIES AND 
              OPERATIONS PROGRAM.

    Section 211 of the Appalachian Regional Development Act of 1965 (40 
U.S.C. App. 211) is repealed.

SEC. 10046. TARGETED JOBS CREDIT.

    (a) In General.--Part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by striking subpart F 
(relating to rules for computing targeted jobs credit).
    (b) Technical Amendments.--
            (1) Subsection (b) of section 38 of such Code is amended by 
        striking paragraph (2) and by redesignating the succeeding 
        paragraphs accordingly.
            (2) The table of subparts for part IV of subchapter A of 
        chapter 1 of such Code is amended by striking the item relating 
        to subpart F.

SEC. 10047. SERVICE MEMBERS OCCUPATIONAL CONVERSION AND TRAINING ACT OF 
              1992.

    The Service Members Occupational Conversion and Training Act of 
1992 (10 U.S.C. 1143 note) is repealed.

SEC. 10048. ADULT EDUCATION PROGRAMS.

    The Adult Education Act (20 U.S.C. 1201 et seq.) is repealed.

SEC. 10049. VOCATIONAL EDUCATION PROGRAMS.

    The Carl D. Perkins Vocational and Applied Technology Education Act 
(20 U.S.C. 2301 et seq.) is repealed.

SEC. 10050. NATIONAL LITERACY PROGRAMS.

    The National Literacy Act of 1991 (20 U.S.C. 1211-2) is repealed.

SEC. 10051. INDIAN EMPLOYMENT, TRAINING AND RELATED SERVICES 
              DEMONSTRATION PROGRAM.

    The Indian Employment, Training and Related Services Demonstration 
Act of 1992 (25 U.S.C. 3401 et seq.) is repealed.

SEC. 10052. SPECIAL PROVISIONS RELATING TO INDIAN TRIBES.

    Subsection (i) of section 682 of the Social Security Act (42 U.S.C. 
682(i)) is repealed.

SEC. 10053. LITERACY CORPS.

    Section 109 of the Domestic Volunteer Service Act of 1973 (42 
U.S.C. 4959) is repealed.

SEC. 10054. MISCELLANEOUS REPEALERS.

    The following provisions of law are hereby repealed:
            (1) The Act of June 6, 1933 (29 U.S.C. 49 et seq.; commonly 
        referred to as the ``Wagner-Peyser Act'').
            (2) Subtitle A of title VII of Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11421 et seq.).
            (3) Subtitle C of title VII of Stewart B. McKinney Homeless 
        Assistance Act (42 U.S.C. 11441 et seq.).
            (4) Chapter 2 of title II of the Trade Act of 1974 (19 
        U.S.C. 2271 and following) and the items relating to such 
        chapter in the table of contents of such Act.
            (5) Section 402 of the Homeownership and Opportunity 
        Through HOPE Act (42 U.S.C. 12870).
            (6) Section 204 of the Immigration Reform and Control Act 
        of 1986 (8 U.S.C. 1255a note).
                     Subtitle B--Department Reform

             CHAPTER 1--SHORT TITLE; FINDINGS; AND PURPOSE
SEC. 10101. SHORT TITLE.

    This subtitle may be cited as the ``Back to Basics Education Reform 
Act''.

SEC. 10102. FINDINGS.

    The Congress finds the following:
            (1) Principles of federalism embodied in the Constitution 
        of the United States entrust authority over issues of 
        educational policy to the States and the people and a Federal 
        Department of Education is inconsistent with such principles.
            (2) Tradition and experience dictate that the governance 
        and management of schools in the United States are best 
        performed by parents, teachers and communities.
            (3) The intrusion by the Department of Education into 
        education policy has not benefited the quality of education in 
        this nation.
            (4) The Department of Education has weakened the ability of 
        parents to make essential decisions about their children's 
        education and has undermined the capacity of communities to 
        govern their schools.
            (5) In the 15 years of its existence, the Department of 
        Education has grown from 130 programs and a budget of $14 
        billion to over 240 separately authorized programs which cost 
        almost $32 billion annually. Meanwhile, education performance 
        has stagnated or deteriorated.
            (6) Since 1980, the year the Federal role in education was 
        elevated to department status, the graduation rate has dropped 
        1.3 percent. Only 71.2 percent of students who enroll in the 
        ninth grade now graduate from high school.
            (7) The Department of Education has fostered over-
        regulation, standardization, bureaucratization, and litigation 
        in United States education.
            (8) The Department of Education expends large amounts of 
        money on its own maintenance and overhead. As an organization, 
        it is inefficient, ill-managed, and wasteful.
            (9) Recent tests reflect poor results in mathematics and 
        reading for American students compared with students from other 
        nations.
            (10) Only through initiatives led by parents and local 
        communities with the power to act can the United States elevate 
        educational performance toward an acceptable level.
            (11) The Department of Education has been hostile to many 
        promising reform ideas.

SEC. 10103. PURPOSES.

    The purposes of this subtitle are--
            (1) to improve the quality of elementary and secondary and 
        higher education programs in the Nation.
            (2) to return the responsibility and authority for 
        education to parents, teachers, communities, students, and 
        States, and provide them greater control over education 
        spending.
            (3) to ensure that the Federal Government does not 
        overregulate and interfere in the decisionmaking of parents, 
        local communities, teachers, and students regarding education.
            (4) to ensure that Americans are able to compete in the 
        global economy of the 21st century.

            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.

    The Department of Education is abolished.

SEC. 10112. ESTABLISHMENT AND SUNSET OF OFFICE OF ECONOMIC 
              OPPORTUNITIES IN THE DEPARTMENT OF HEALTH AND HUMAN 
              SERVICES, AND TRANSFER OF FUNCTIONS.

    (a) Establishment of Office.--There is established in the 
Department of Health and Human Services the Office of Economic 
Opportunities.
    (b) Director.--
            (1) In general.--There shall be at the head of the Office a 
        Director for Economic Opportunities, who shall be appointed by 
        the President and confirmed with the advice and consent of the 
        Senate. The Office shall be administered under the supervision 
        and direction of the Assistant Secretary for the Administration 
        for Families and Children. The Director for Economic 
        Opportunities shall receive compensation at the rate prescribed 
        for level V of the Executive Schedule under section 5315 of 
        title 5, United States Code.
            (2) Initial appointment of administrator.--Notwithstanding 
        any other provision of this subtitle or any other law, the 
        President may, at any time after the date of the enactment of 
        this Act, appoint an individual to serve as Director of 
        Economic Opportunities, as such position is established under 
        paragraph (1). An appointment under this paragraph may not be 
        construed to affect the position of Secretary of Education or 
        the authority of the Secretary before the effective date 
        specified in section 10119(a).
    (c) Duties.--The Director shall be responsible for--
            (1) the administration of all functions of the Office 
        pursuant to section 10112 and other provisions of law;
            (2) the administration and wind-up of any outstanding 
        obligations of the Federal Government under any programs 
        terminated or repealed by this subtitle; and
            (3) taking such other actions as may be necessary to wind 
        up any outstanding affairs of the Department of Education and 
        the Office.
    (d) Transfer of Functions.--Except as otherwise provided in this 
subtitle, the Director shall perform all functions that, immediately 
before the effective date of this section under section 10119(a), were 
functions of the Department of Education (or any office of the 
Department) or were performed by the Secretary of Education or any 
other officer or employee of the Department in the capacity as such 
officer or employee.
    (e) Abolition of Office.--The Office and all of its functions are 
abolished effective upon the expiration of the authorization for the 
programs under its jurisdiction.

SEC. 10113. PRINCIPAL OFFICERS.

    (a) Directors.--There shall be in the Office--
            (1) an Assistant Director of Childhood Schooling; and
            (2) an Assistant Director of Advanced Schooling.
    (b) Appointment.--Each of the Assistant Directors in the Office of 
Economic Opportunities shall be appointed by the Secretary of Health 
and Human Services.
SEC. 10114. CONTINUATION OF SERVICE OF DEPARTMENT OFFICER.

    (a) Continuation of Service of Secretary.--The individual serving 
as the Secretary of Education on the effective date of this chapter may 
serve as Director until the date an individual is appointed under this 
chapter to the position of Director, or until the end of the 120-day 
period provided for in section 3348 of title 5, United States Code 
(relating to limitations on the period of time a vacancy may be filled 
temporarily), whichever is earlier.
    (b) Compensation for Continued Service.--Any individual who acts as 
the Director under subsection (a) after the effective date of this 
chapter and before the first appointment of a person to such position 
after such date shall be compensated pursuant to section 10112(b)(1) 
for so serving or acting.

SEC. 10115. REORGANIZATION.

    The Secretary of Health and Human Services may allocate or 
reallocate any function of the Office pursuant to this subtitle among 
the officers of the Office, and may, in accordance with the transfer of 
functions by this subtitle, consolidate, alter, or discontinue in the 
Office any organizational entities that were entities of the Department 
of Education, as the Secretary of Health and Human Services considers 
necessary or appropriate. Notwithstanding any other provision of law, 
the Secretary of Health and Human Services may not transfer any 
function or personnel of the Office to any agency outside of the 
Office.

SEC. 10116. PLAN FOR WINDING UP AFFAIRS.

    Not later than the effective date specified in section 10119, the 
President shall submit to the Congress a plan for winding up the 
affairs of the Department of Education in accordance with this 
subtitle.

SEC. 10117. GAO REPORT.

    Not later than 180 days after the date of enactment of this Act, 
the Comptroller General of the United States shall submit to the 
Congress a report which shall include recommendations for the most 
efficient means of achieving, in accordance with this subtitle--
            (1) the complete abolition of the Department of Education; 
        and
            (2) the termination or transfer or other continuation of 
        functions of the Department of Education.

SEC. 10118. CONFORMING AMENDMENTS.

    (a) Presidential Succession.--Section 19(d)(1) of title 3, United 
States Code, is amended by striking ``Secretary of Education,''.
    (b) Executive Departments.--Section 101 of title 5, United States 
Code, is amended by striking the following item: ``The Department of 
Education.''.
    (c) Secretary's Compensation.--Section 5312 of title 5, United 
States Code, is amended by striking the following item: ``Secretary of 
Education.''.
    (d) Compensation for Positions at Level II.--Section 5313 of title 
5, United States Code, is amended by striking the following item: 
``Deputy Secretary of Education.''.
    (e) Compensation for Positions at Level III.--Section 5314 of title 
5, United States Code, is amended by striking the following item: 
``Under Secretary of Education.'';
    (f) Compensation for Positions at Level IV.--Section 5315 of title 
5, United States Code, is amended--
            (1) by striking the following items: ``Assistant 
        Secretaries of Education (10). ``General Counsel, Department of 
        Education. ``Inspector General, Department of Education.'';
            (2) by striking the following item: ``Chief Financial 
        Officer, Department of Education.''; and
            (3) by striking the following item: ``Liaison for Community 
        and Junior Colleges, Department of Education.''.
    (g) Compensation for Positions at Level V.--Section 5316 of title 
5, United States Code, is amended by striking the following item: 
``Additional officers, Department of Education (4).''.
    (h) Inspector General Act of 1978.--The Inspector General Act of 
1978 (5 U.S.C. App.) is amended--
            (1) in section 9(a)(1), by striking subparagraph (D);
            (2) in section 11(1), by striking ``Education,''; and
            (3) in section 11(2), by striking ``Education,''.

SEC. 10119. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this chapter 
shall take effect on the date that is one year after the date of 
enactment of this Act.
    (b) Initial Appointment of Director.--The following provisions of 
this chapter shall take effect on the date of enactment of this Act:
            (1) Section 10116.
            (2) Section 10117.

SEC. 10120. LIMITATION ON EXPENDITURES.

    The amount expended by the United States each fiscal year for the 
administration of a function transferred by this subtitle shall not 
exceed 70 percent of the total amount expended for the administration 
of that function during fiscal year 1995.

                     CHAPTER 3--EDUCATION PROGRAMS

            Subchapter A--Elementary and Secondary Education

     PART I--ELEMENTARY AND SECONDARY EDUCATION BLOCK GRANT PROGRAM

SEC. 10131. GOALS OF ELEMENTARY AND SECONDARY EDUCATION BLOCK GRANT 
              PROGRAM.

    The Director of the Office of Economic Opportunities under the 
Administration for Children and Families in the Department of Health 
and Human Services is authorized to provide the Governor of each State 
that complies with the requirements of section 10133 a grant in an 
amount determined under section 10135.

SEC. 10132. PROGRAM AUTHORIZED.

    Each State shall, subject to the requirements of this subtitle and 
appropriations Acts, receive a grant under
 this subtitle in each fiscal year to carry out the purposes of this 
subtitle.

SEC. 10133. STATE ELIGIBILITY.

    (a) In General.--To be eligible to receive a grant under this 
subtitle, a State shall submit an application to the Director of 
Economic Opportunities which contains the assurances required by this 
chapter. Such application must be submitted at such time, in such form 
and manner as the Director may reasonably require.
    (b) Assurances.--Such application shall include the following 
assurances:
            (1) Improve education.--The Governor shall use funds 
        received to improve education.
            (2) Distribution.--The Governor shall establish a procedure 
        to distribute funds to local educational entities or to provide 
        services to children attending local educational entities.
            (3) Assurances from local educational entities.--The 
        Governor shall require a local educational entity that seeks 
        funds under this chapter to provide assurances that--
                    (A) funds will be used to improve education;
                    (B) parents, members of the community, and 
                community leaders will be involved in decisionmaking at 
                the local level; and
                    (C) such entity that receives funds under this 
                chapter will comply with Federal civil rights laws.

SEC. 10134. GENERAL STATE REQUIREMENTS.

    (a) Funds for Local Use.--
            (1) In general.--Not less than 98 percent of the amount of 
        funds received by a State under this chapter shall be made 
        available to local educational entities.
            (2) Local discretion.--A local educational entity that 
        receives funds from a State will have the discretion to spend 
        funds received from the State to develop programs that improve 
        education.
    (b) Administrative Costs.--Not more than 2 percent of funds 
received under this chapter may be used by a State or a local 
educational entity for administrative purposes.

SEC. 10135. AMOUNT OF STATE ALLOTMENT.

    (a) In General.--Except as provided in subsections (b) and (c), 
there shall be allotted to each State, which for purposes of this 
section shall not include the territories, an amount which bears the 
same ratio to the amount of funds appropriated for this chapter in any 
fiscal year as the population of children, aged 5 through 17 years of 
age, of such State bears to the population of such children of all the 
States.
    (b) State Minimum.--Of the total amount appropriated to carry out 
this subtitle in any fiscal year each State shall receive not less than 
one quarter of one percent of such amounts.
    (c) Set Aside for Territories.--Of the amount allotted under 
subsection (a), the Director shall allot not more than one quarter of 
one percent among Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, American Samoa, Guam, and the Virgin Islands.

SEC. 10136. LOCAL FISCAL ACCOUNTABILITY.

    A local educational entity that receives funds from a State under 
this subtitle in any fiscal year shall be required to make reasonably 
available--
            (1) a proposed budget regarding how such funds shall be 
        used; and
            (2) an accounting of the actual use of such funds at the 
        end of such entity's fiscal year.

SEC. 10137. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    (a) Secular, Neutral, Nonideological.--Any educational services or 
other benefits, including materials and equipment, provided to children 
enrolled in private schools shall be secular, neutral, and 
nonideological.
    (b) Bypass.--
            (1) In general.--If under law a State is prohibited from 
        providing for the participation under this chapter of eligible 
        children enrolled in private elementary and secondary schools, 
        the Office of Economic Opportunities, at the request of the 
        Governor, shall arrange for services for such children to the 
        extent consistent with the number of eligible children 
        identified under section 10135 in a local educational agency 
        who are enrolled in private elementary and secondary schools.
            (2) Equitable services.--Services provided under this 
        section shall be equitable in comparison to services and other 
        benefits provided for public school children participating in 
        programs under this chapter.
            (3) Reduction.--The amount of funds appropriated to the 
        State pursuant to section 10135 shall be reduced by the amount 
        necessary to carry out this section.

SEC. 10138. DEFINITIONS.

    Except as otherwise provided, for the purposes of this subtitle, 
the following terms have the following meanings:
            (1) Director.--The term ``Director'' means the Director of 
        Economic Opportunities under the Administration for Children 
        and Families in the Department of Health and Human Services.
            (2) Local educational entity.--The term ``local educational 
        entity'' means a local educational agency or public or a 
        private elementary or secondary school.
            (2) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, American Samoa, Guam, and the 
        Commonwealth of the Northern Mariana Islands.

SEC. 10139. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $9,000,000,000 for each of 
the fiscal years 1998 through 2000 to carry out the programs authorized 
under this subtitle.

       PART II--OTHER ELEMENTARY AND SECONDARY EDUCATION PROGRAMS

SEC. 10141. AMENDMENTS AND REPEALS OF CERTAIN EDUCATION PROVISIONS.

    (a) Elementary and Secondary Education Act of 1965.--
            (1) In general.--Titles I, II, III, IV, V, VI, VII, X, XI, 
        XII, XIII, XIV, and parts B and C of title IX of the Elementary 
        and Secondary Education Act of 1965 are repealed.
            (2) Impact aid.--(A) Section 8003 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7703) is amended by 
        striking subsection (e) of such section.
            (B) Except as provided under subparagraph (A), the programs 
        provided under title VIII of the Elementary and Secondary 
        Education Act of 1965 shall be administered by the Department 
        of Defense through the Assistant Secretary for Force Management 
        Policy.
            (3) Indian education.--Part A of title IX of the Elementary 
        and Secondary Education Act of 1965 shall be administered by 
        the Department of the Interior through the Assistant Secretary 
        for Indian Affairs.
    (b) Goals 2000: Educate America Act.--Goals 2000: Educate America 
Act is repealed.
    (c) School-to-Work Opportunities Act.--The School-to-Work 
Opportunities Act is repealed.
    (d) General Education Provisions Act.--Parts D and F, sections 422, 
424, 425, 427, 428, 429, 433,
 439, and 443, and paragraph (3) of section 431(a) of the General 
Education Provisions Act are repealed.
    (e) National Education Statistics Act of 1994.--The National 
Education Statistics Act of 1994 is repealed.
    (f) Effective Date.--The repeals and transfers made by subsections 
(a), (b), (c), and (d) shall take effect on the date that is one year 
after the date of enactment of this Act.

     Subchapter II--Conforming Amendments to the Individuals with 
                       Disabilities Education Act

SEC. 10142. AMENDMENTS TO PROVISIONS REFERENCING SECRETARY OF EDUCATION 
              AND DEPARTMENT OF EDUCATION.

    (a) Transfer of Authority from Secretary of Education to Secretary 
of Health and Human Services.--The Individuals with Disabilities 
Education Act (20 U.S.C. 1400 et seq.) is amended in sections 
602(a)(14), 611(f), and 684(b)(5) by striking ``Secretary of 
Education'' each place such term appears and inserting ``Secretary of 
Health and Human Services''.
    (b) Transfer of Authority From Department of Education to 
Department of Health and Human Services.--The Individuals with 
Disabilities Education Act (20 U.S.C. 1400 et seq.) is amended in 
sections 610 and 621(a)(3) by striking ``Department of Education'' each 
place such term appears and inserting ``Department of Health and Human 
Services''.

SEC. 10143. AMENDMENTS TO DEFINITIONS.

    (a) Definition of Excess Costs.--Subparagraph (A) of section 
602(a)(21) of the Individuals with Disabilities Education Act (20 
U.S.C. 1401(a)(21)(A)) is amended to read as follows:
                    ``(A) amounts received--
                            ``(i) under this part, or
                            ``(ii) under subchapter I of chapter 3 of 
                        the Back to Basics Education Act, and''.
    (b) Definition of Native Language.--Paragraph (22) of section 
602(a) of the Individuals with Disabilities Education Act (20 U.S.C. 
1401(a)(22)) is amended to read as follows:
            ``(22) The term `native language', when used with reference 
        to an individual of limited-English proficiency, means the 
        language normally used by the individual, or in the case of an 
        individual aged 3 through 21, the language normally used by the 
        parents of the individual.''.

SEC. 10144. TRANSFER OF ADMINISTERING AUTHORITY TO OFFICE OF ECONOMIC 
              OPPORTUNITIES.

    The Individuals with Disabilities Education Act (20 U.S.C. 1400 et 
seq.) is amended--
            (1) by striking section 603 and inserting the following:

                   ``office of economic opportunities

    ``Sec. 603. The Secretary of Health and Human Services, acting 
through the Director for Economic Opportunities, shall administer and 
carry out this subtitle. The Office of Economic Opportunities shall be 
the principal agency in the Department of Health and Human Services for 
administering and carrying out programs and activities concerning the 
education and training of individuals with disabilities.'';
            (2) in section 621(f)(1), by striking ``Office of Special 
        Education Programs'' and inserting ``Office of Economic 
        Opportunities''; and
            (3) in section 685(b)(1), by striking ``Office of Special 
        Education Programs;'' and inserting ``Office of Economic 
        Opportunities;''.

SEC. 10145. OUTREACH SERVICES FOR CERTAIN INSTITUTIONS OF HIGHER 
              EDUCATION.

    Subclause (II) of section 610(j)(2)(C)(ii) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1409(j)(2)(C)(ii)(II)) is amended 
to read as follows:
                    ``(II) institutions of higher education which have 
                an enrollment with includes a substantial percentage of 
                needy students (as determined by the Director) and the 
                average educational and general expenditures of which 
                are low, per full-time equivalent undergraduate 
                student, in comparison with the average educational and 
                general expenditures per full-time equivalent 
                undergraduate student of institutions that offer 
                similar instruction;''.

               Subchapter III--Higher Education Programs

             PART I--ELIMINATION AND REDUCTION OF PROGRAMS

SEC. 10151. REPEAL OF HIGHER EDUCATION LAWS.

    (a) In General.--Except as provided in subsection (b) and (c), the 
Higher Education Act of 1965 (20 U.S.C. 1001) is repealed effective one 
year after the date of the enactment of this Act.
    (b) Exceptions.--Subsection (a) shall not apply to the following:
            (1) The first section, containing the short title of such 
        Act.
            (2) Subpart 1 of part A of title IV, relating to Pell 
        Grants.
            (3) Part B of such title, relating to the Federal Family 
        Education Loan Program.
            (4) Part E of such title, relating to Perkins Loans.
            (5) Parts F, G, and H of such title, relating to needs 
        analysis, general provisions, and the program integrity triad.
            (6) Section 1201, relating to definitions.
    (c) Continuing Authority To Collect Loans.--Subsection (a) shall 
not affect the authority of the United States to collect any loan made 
under any provision repealed by such subsection.
    (d) Perkins Loans.--Section 461(b) of the Higher Education Act of 
1965 is amended to read as follows:
    ``(b) Contributions Discontinued.--No funds are authorized to be 
appropriated for fiscal year 1996 or any succeeding year for the 
purpose of making contributions to student loan funds established under 
this part.''.
    (e) Limitation on Funds for Howard University.--Section 8 of the 
Act of March 2, 1867 is amended--
            (1) by inserting ``(a)'' after ``Sec. 8.''; and
            (2) by adding at the end the following new subsection:
    ``(b) Notwithstanding subsection (a) and any provision of the 
Howard University Endowment Act, the total amount that is authorized to 
be appropriated pursuant to this section and such Endowment Act shall 
not exceed the total amount appropriated pursuant to this section and 
such Endowment Act for fiscal year 1995, and of such total amount--
            ``(1) not less than 30 percent of the amount appropriated 
        for fiscal year 1998 shall be appropriated for purposes of such 
        Endowment Act;
            ``(2) not less than 60 percent of the amount appropriated 
        for fiscal year 1999 shall be appropriated for purposes of such 
        Endowment Act; and
            ``(3) not less than 100 percent of the amount appropriated 
        for fiscal year 2000 shall be appropriated for purposes of such 
        Endowment Act.
Notwithstanding subsection (a) and any provision of the Howard 
University Endowment Act, no funds are authorized to be appropriated 
pursuant to this section or such Endowment Act for fiscal year 2001 or 
any succeeding fiscal year.''.

SEC. 10152. AMENDMENT TO THE FEDERAL CREDIT REFORM ACT.

    (a) Amendment.--Section 502(5)(B) of the Congressional Budget Act 
is amended to read as follows:
                    ``(B) The cost of a direct loan shall be the net 
                present value, at the time when the direct loan is 
                disbursed, of the following cash flows for the 
                estimated life of the loan--
                            ``(i) loan disbursements;
                            ``(ii) repayments of principal;
                            ``(iii) payments of interest and other 
                        payments by or to the Government over the life 
                        of the loan after adjusting for estimated 
                        defaults, prepayments, fees, penalties and 
                        other recoveries; and
                            ``(iv) in the case of a direct loan made 
                        pursuant to a program for which the Office of 
                        Management and Budget estimates that for the 
                        coming fiscal year (or for any prior fiscal 
                        year) loan commitments will equal or exceed 
                        $5,000,000,000, direct expenses, including but 
                        not limited to the following: expenses arising 
                        from activities related to credit extension; 
                        loan origination; loan servicing; technical 
                        assistance; training; program promotion; 
                        payments to contractors, other government 
                        entities, and program participants; collection 
                        of delinquent loans; and write-off and close-
                        out of loans.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to all fiscal years beginning on or after October 1, 1995, and to 
statutory changes made on or after the date of enactment of this Act.

SEC. 10153. SALE OF FDSL LOAN PORTFOLIOS.

    The Higher Education Act of 1965 Act (20 U.S.C. 1087h) is amended 
by inserting after section 458 the following new section:

``SEC. 459. SALE OF FEDERAL DIRECT STUDENT LOAN PORTFOLIOS.

    ``(a) Auction Sales of Loan Portfolios.--The Secretary shall 
conduct auctions to sell the outstanding portfolio of loans made 
pursuant to this part. Such auctions shall consist of sales of 
portfolios representative of the overall characteristics of the direct 
loans held by the Secretary. Auctions shall be held for portfolios of 
not less than $40,000,000 of loans per sale. The first sale of loans 
shall take place not later than 120 days after the date of enactment of 
this section, and shall not include Federal guarantees or reinsurance 
against the contingency of borrower default, death, or disability.
    ``(b) Loan Terms Subject to Promissory Note.--Such loans shall be 
subject to the terms and conditions as specified in the borrower 
promissory note, and shall not be subject to further Federal 
regulations pursuant to this subtitle.
    ``(c) Disposition of Proceeds.--All proceeds received as a result 
of the auctions conducted pursuant to this part shall be returned to 
the United States Department of the Treasury after deduction of 
expenses incurred by the Department of Education in connection with the 
auctions required pursuant to this section.''.

SEC. 10154. STUDENT LOAN PROGRAM; STATEMENT OF POLICY.

    The Congress finds that the Federal student loan programs should be 
reviewed to evaluate whether reforms need to be made to the programs 
based on the principles of risk sharing, market-based orientation, 
privatization, and deregulation.

SEC. 10155. ELIMINATION OF IN-SCHOOL INTEREST SUBSIDIES.

    (a) Guaranteed Loans.--Section 428(a) of the Higher Education Act 
of 1965 (20 U.S.C. 1078(a)) is amended by adding at the end the 
following new paragraph:
            ``(8) Termination of interest subsidies.--Notwithstanding 
        paragraph (3), no portion of the interest shall be paid by the 
        Secretary under this subsection on any loan made on or after 
        October 1, 1995. Interest on the unpaid principal amount of any 
        such loan--
                    ``(A) which accrues prior to the beginning of the 
                repayment period of the loan, or
                    ``(B) which accrues during a period in which 
                principal need not be paid (whether or not such 
                principal is in fact paid) by reason of a provision 
                described in subsection (b)(1)(M) of this section or in 
                section 427(a)(2)(C),
        shall, at the option of the borrower--
                    ``(i) be paid monthly or quarterly, or
                    ``(ii) be added by the lender to the principal 
                amount of the loan at the commencement of the repayment 
                period.''.

                 PART II--HIGHER EDUCATION BLOCK GRANT

SEC. 10161. PURPOSE.

    It is the purpose of this part to authorize block grants to States 
to assist institutions of higher education in order to improve access 
to higher education and to improve the quality of educational programs.

SEC. 10162. DISTRIBUTION OF FUNDS.

    (a) In General.--From the funds appropriated under section 10165, 
the Director shall allocate to the Governor of each State that has 
submitted the assurances
 required by section 10163 an amount that bears the same ratio to the 
amount so appropriated as the number of students enrolled in 
institutions of higher education in such State bears to the total 
number of students so enrolled in all the States.
    (b) Exception for Small States.--Notwithstanding subsection (a), no 
State shall be allocated less than 0.25 percent of the funds 
appropriated under section 10165.
    (c) Determination of Number of Students.--The Director shall 
determine the number of students in each State on the basis of a 
certification from the Governor of each State.

SEC. 10163. STATE ASSURANCES.

    Any State seeking to obtain an allocation under section 10162 shall 
submit to the Director an application that contains the following 
assurances:
            (1) The Governor of such State will establish a procedure 
        for the distribution of funds to participating institutions of 
        higher education.
            (2) The Governor will use the funds obtained under this 
        part only for the improvement of higher education.
            (3) The Governor will require each participating 
        institution to submit assurances to the State that they will 
        use funds obtained under this part only for the improvement of 
        higher education.
            (4) The Governor will require each participating 
        institution to submit assurances that the institution will 
        comply with Federal civil rights laws.

SEC. 10164. USE OF FUNDS.

    (a) In General.--Any funds obtained by a participating institution 
under this part may, subject to the provisions of this part, be used 
for any existing or new program.
    (b) Limitation on Administrative Costs.--Not more than 2 percent of 
the funds allocated to any State or institution under this chapter may 
be used for administrative costs.

SEC. 10165. PUBLIC DISCLOSURE.

    Institutions receiving funding under this chapter shall make 
reasonably available to the community, parents, and students a listing 
of the uses of such funds.

SEC. 10166. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this subtitle 
$2,000,000,000 for each of fiscal years 1998 through 2000.

SEC. 10167. DEFINITIONS.

    As used in this subtitle--
            (1) unless otherwise provided, the terms used in this part 
        that are defined in section 1201 of the Higher Education Act of 
        1965 have the meanings provided in such section;
            (2) the term ``State'' means the several States and the 
        District of Columbia; and
            (3) the term ``Director'' means the Director of Economic 
        Opportunities in the Department of Health and Human Services.

                Subchapter IV--Miscellaneous Provisions

SEC. 10171. CONSTRUCTION.

    Notwithstanding the provisions of this subtitle, nothing in this 
subtitle shall be construed to affect continued funding for Galludet 
University, the American Printing House for the Blind, or the National 
Institute for the Deaf at fiscal year 1995 levels through fiscal year 
2000.

SEC. 10172. REGULATIONS.

    For purposes of this chapter, the Secretary of Health and Human 
Services shall consult with Congress before issuing regulations 
regarding the grants provided under part I of subchapter A and part II 
of subchapter C of this chapter and shall only issue regulations that 
are necessary for the timely distribution of funds to the States.

SEC. 10173. CONSOLIDATED APPLICATION.

    The Secretary of Health and Human Services shall provide for a 
consolidated application for grants provided under part I of subchapter 
A and part II of subchapter C of this chapter. Consolidated 
applications also shall be permitted at the local level.

SEC. 10174. APPROPRIATIONS.

    The amount that is authorized to be appropriated for programs under 
part II of subchapter A, subchapter B, and part I of subchapter C shall 
not exceed the amount appropriated for such programs for fiscal year 
1995. Such programs shall be authorized through fiscal year 2000.

SEC. 10175. FEDERAL CIVIL RIGHTS.

    (a) In General.--
            (1) Applicability.--Nothing in this chapter shall be 
        construed to affect the applicability of civil rights laws 
        relating to any program established, transferred, or 
        consolidated under this subtitle.
            (2) Duties.--The Secretary of Health and Human Services 
        shall be responsible for carrying out any other civil rights 
        functions performed by the Secretary of Education as such 
        functions were performed on the day before the date of the 
        enactment of this Act.
    (b) Health and Human Services.--The Director of the Office of Civil 
Rights of the Department of Health and Human Services shall submit a 
report annually to the Secretary of Health and Human Services, the 
President, and the appropriate committees of Congress summarizing the 
compliance and enforcement activities of the Office of Civil Rights as 
such activities pertain to the Office of Economic Opportunities. The 
report shall identify significant civil rights or compliance problems 
for which the Office of Civil Rights has made a recommendation for 
corrective action and which, in the judgment of the Director of the 
Office of Civil Rights, adequate progress is not being made.
    (c) Department of Justice.--The Assistant Attorney General in 
charge of the Civil Rights Division of the Department of Justice shall 
submit annually a report to the Attorney General, the President, and 
the appropriate committees of Congress summarizing the activities of 
the Civil Rights Division as such activities pertain to the grantees of 
programs authorized by this subtitle.

                     CHAPTER 4--GENERAL PROVISIONS

SEC. 10181. REFERENCES.

    Any reference in any other Federal law, Executive order, rule, 
regulation, or delegation of authority, or any document of or 
pertaining to an office from which a function is transferred by this 
subtitle--
            (1) to the Secretary of Education or an officer of the 
        Department of Education, is deemed to refer to the head of the 
        department or office to which such function is transferred; or
            (2) to the Department of Education is deemed to refer to 
        the department or office to which such function is transferred.

SEC. 10182. EXERCISE OF AUTHORITIES.

    Except as otherwise provided by law, a Federal official to whom a 
function is transferred by this subtitle may, for purposes of 
performing the function, exercise all authorities under any other 
provision of law that were available with respect to the performance of 
that function to the official responsible for the performance of the 
function immediately before the transfer of the function under this 
subtitle.

SEC. 10183. SAVINGS PROVISIONS.

    (a) Legal Documents.--All orders, determinations, rules, 
regulations, permits, grants, loans, contracts, agreements, 
certificates, licenses, and privileges--
            (1) that have been issued, made, granted, or allowed to 
        become effective by the President, the Secretary of Education, 
        any officer or employee of any office transferred by this 
        subtitle, or any other Government official, or by a court of 
        competent jurisdiction, in the performance of any function that 
        is transferred by this subtitle, and
            (2) that are in effect on the date of such transfer (or 
        become effective after such date pursuant to their terms as in 
        effect on the date of such transfer),
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, any other authorized official, a court of competent 
jurisdiction, or operation of law.
    (b) Proceedings.--This subtitle shall not affect any proceedings or 
any application for any benefits, service, license, permit, 
certificate, or financial assistance pending on the effective date of 
this chapter with respect to a function transferred by this subtitle, 
but such proceedings and applications shall be continued. Orders shall 
be issued in such proceedings, appeals shall be taken therefrom, and 
payments shall be made pursuant to such orders, as if this subtitle had 
not been enacted, and orders issued in any such proceeding shall 
continue in effect until modified, terminated, superseded, or revoked 
by a duly authorized official, by a court of competent jurisdiction, or 
by operation of law. Nothing in this subsection shall be considered to 
prohibit the discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent that such 
proceeding could have been discontinued or modified if this subtitle 
had not been enacted.
    (c) Suits.--This subtitle shall not affect suits commenced before 
the effective date of this chapter and in all such suits, proceeding 
shall be had, appeals taken, and judgments rendered in the same manner 
and with the same effect as if this subtitle had not been enacted.
    (d) Nonabatement of Actions.--No suit, action, or other proceeding 
commenced by or against the Department of Education or the Secretary of 
Education, or by or against any individual in the official capacity of 
such individual as an officer or employee of an office transferred by 
this subtitle, shall abate by reason of the enactment of this Act.
    (e) Continuance of Suits.--If, before the effective date of this 
chapter, any officer of the Department of Education in the official 
capacity of such officer is party to a suit with respect to a function 
of the officer, and under this subtitle such function is transferred to 
any other officer or office, then such suit shall be continued with the 
other officer or the head of such other office, as applicable, 
substituted or added as a party.

SEC. 10184. TRANSFER OF ASSETS.

    Except as otherwise provided in this subtitle, so much of the 
personnel, property, records, and unexpended balances of 
appropriations, allocations, and other funds employed, used, held, 
available, or to be made available in connection with a function 
transferred to an official by this subtitle shall be available to the 
official at such time or times as the President directs for use in 
connection with the functions transferred.

SEC. 10185. DELEGATION AND ASSIGNMENT.

    Except as otherwise expressly prohibited by law or otherwise 
provided in this subtitle, an official to whom functions are 
transferred under this subtitle (including the head of any office to 
which functions are transferred under this subtitle) may delegate any 
of the functions so transferred to such officers and employees of the 
office of the official as the official may designate, and may authorize 
successive redelegations of such functions as may be necessary or 
appropriate. No delegation of functions under this section or under any 
other provision of this subtitle shall relieve the official to whom a 
function is transferred under this subtitle of responsibility for the 
administration of the function.

SEC. 10186. AUTHORITY OF OFFICE OF MANAGEMENT AND BUDGET WITH RESPECT 
              TO FUNCTIONS TRANSFERRED.

    (a) Determinations.--If necessary, the Director of the Office of 
Management and Budget shall make any determination of the functions 
that are transferred under this subtitle.
    (b) Incidental Transfers.--The Director of the Office of Management 
and Budget, at such time or times as the Director shall provide, may 
make such determinations as may be necessary with regard to the 
functions transferred by this subtitle, and to make such additional 
incidental dispositions of personnel, assets, liabilities, grants, 
contracts, property, records, and unexpended balances of 
appropriations, authorizations, allocations, and other funds held, 
used, arising from, available to, or to be made available in connection 
with such functions, as may be necessary to carry out the provisions of 
this subtitle. The Director of the Office of Management and Budget 
shall provide for the termination of the affairs of all entities 
terminated by this subtitle and for such further measures and 
dispositions as may be necessary to effectuate the purposes of this 
subtitle.

SEC. 10187. PROPOSED CHANGES IN LAW.

    Not later than 90 days before the effective date specified in 
section 10119, the Director of the Office of Management and Budget 
shall submit to the Congress a description of any changes in Federal 
law necessary to reflect abolishments, transfers, terminations, and 
disposals under this subtitle.
SEC. 10188. DEFINITION OF TRANSFER.

    For purposes of this chapter, the vesting of a function in a 
department or office pursuant to reestablishment of an office shall be 
considered to be the transfer of the function.

SEC. 10189. DEFINITIONS.

    For purposes of this chapter, the following definitions shall 
apply:
            (1) Director.--The term ``Director'' means the Director for 
        Economic Opportunities in the Administration for Families and 
        Children in the Department of Health and Human Services, 
        established under section 10112(a).
            (2) Function.--The term ``function'' includes any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        activity, or program.
            (3) Office.--The term ``Office'' means the Office of 
        Economic Opportunities in the Department of Health and Human 
        Services, established under section 10112(a).

                    CHAPTER 5--STATEMENTS OF POLICY

SEC. 10191. STATEMENT OF POLICY REGARDING FEDERAL EDUCATION FUNDING.

    Congress finds that there should be a review and evaluation as to 
the feasibility of further enhancing the ability of States and local 
communities to fund education by reducing the Federal tax burden and 
commensurately eliminating Federal Government involvement in providing 
grants for education programs.

SEC. 10192. STATEMENT OF POLICY REGARDING JOB TRAINING PROGRAMS.

    The Congress finds that all job training programs under the 
jurisdiction of the Department of Education--
            (1) should be reviewed and transferred to the Department of 
        Labor; and
            (2) should be consolidated into 1 or more block grants.

SEC. 10193. STATEMENT OF POLICY REGARDING INDIAN EDUCATION.

    Congress finds that any program transferred as a result of this 
subtitle to the Department of the Interior should be reviewed by 
Congress to ensure that such programs benefit Native American children 
that live on reservations.

         Subtitle C--Elementary and Secondary Education Reforms

SEC. 10201. ELIMINATION OF IMPACT AID.

    (a) In General.--Title VIII of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7701 et seq.) is hereby repealed.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1995, or the date of the enactment of this 
Act, whichever occurs later.

SEC. 10202. EISENHOWER REGIONAL MATHEMATICS AND SCIENCE EDUCATION 
              CONSORTIA.

    Title XIII of the Elementary and Secondary Education Act of 1965 is 
amended by striking part C.

SEC. 10203. LIMITATION ON AUTHORIZATIONS OF APPROPRIATIONS FOR THE 
              INDIVIDUALS WITH DISABILITIES EDUCATION ACT.

    Part A of the Individuals with Disabilities Education Act (20 
U.S.C. 1400 et seq.) is amended by adding at the end the following:

            ``limitation on authorizations of appropriations

    ``Sec. 610A. Notwithstanding any other provision of this title, the 
aggregate amount of funds authorized to be appropriated to carry out 
this title may not exceed $3,252,846,000 for each of the fiscal years 
1996 through 2000.''.
SEC. 10204. EDUCATION IMPROVEMENT.

    Not more than $320,298,000 may be made available to carry out the 
Eisenhower Professional Development State Grant program under title II 
of the Elementary and Secondary Education Act of 1965 for each of 
fiscal years 1996, 1997, 1998, 1999, and 2000.

SEC. 10205. INNOVATIVE EDUCATION PROGRAM STRATEGIES.

    Not more than $347,250,000 may be available to carry out State 
grant programs under title VI of the Elementary and Secondary Education 
Act of 1965 for each of fiscal years 1996, 1997, 1998, 1999, and 2000.

SEC. 10206. SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES.

    (a) State Grants.--Not more than $456,962,000 may be available to 
carry out State grant programs under subpart 1 of part A of title IV of 
the Elementary and Secondary Education Act of 1965 for each of fiscal 
years 1996, 1997, 1998, 1999, and 2000.
    (b) National Programs.--Not more than $25,000,000 may be available 
to carry out National programs under subpart 2 of part A of title IV of 
the Elementary and Secondary Education Act of 1965 for each of fiscal 
years 1996, 1997, 1998, 1999, and 2000.

SEC. 10207. EDUCATION INFRASTRUCTURE.

    Not more than $100,000,000 may be made available to carry out 
education infrastructure programs under title XII of the Elementary and 
Secondary Education Act of 1965 for each of fiscal years 1996, 1997, 
1998, 1999, and 2000.

SEC. 10208. INEXPENSIVE BOOK DISTRIBUTION.

    Not more than $10,300,000 may be made available to carry out the 
Inexpensive Book Distribution program under part E of title X of the 
Elementary and Secondary Education Act of 1965 for each of fiscal years 
1996, 1997, 1998, 1999, and 2000.

SEC. 10209. ARTS IN EDUCATION.

    Not more than $12,000,000 may be made available to carry out the 
Arts in Education Program under part D of title X of the Elementary and 
Secondary Education Act of 1965 for each of fiscal years 1996, 1997, 
1998, 1999, and 2000.

SEC. 10210. CHRISTA McAULIFFE SCHOLARSHIPS.

    Not more than $1,946,000 may be made available to carry out Christa 
McAuliffe Scholarships by the Department of Education for each of 
fiscal years 1996, 1997, 1998, 1999, and 2000.

SEC. 10211. MAGNET SCHOOLS ASSISTANCE.

    Not more than $111,519,000 may be made available to carry out the 
Magnet Schools Assistance program under part A of title V of the 
Elementary and Secondary Education Act of 1965 for each of fiscal years 
1996, 1997, 1998, 1999, and 2000.
SEC. 10212. EDUCATION FOR HOMELESS CHILDREN AND YOUTH.

    Not more than $28,811,000 may be made available to carry out 
Education for Homeless Children and Youth programs under subtitle B of 
title VII of the Stewart B. McKinney Homeless Assistance Act for each 
of fiscal years 1996, 1997, 1998, 1999, and 2000.

SEC. 10213. WOMEN'S EDUCATIONAL EQUITY.

    Not more than $3,967,000 may be made available to carry out the 
Women's Educational Equity programs under part B of title V of the 
Elementary and Secondary Education Act of 1965 for each of fiscal years 
1996, 1997, 1998, 1999, and 2000.

SEC. 10214. TRAINING AND ADVISORY SERVICES.

    Not more than $21,419,000 may be made available to the Department 
of Education to carry out the Training and Advisory services under 
title IV-A of the Civil Rights Act for each of fiscal years 1996, 1997, 
1998, 1999, and 2000.

SEC. 10215. DROPOUT DEMONSTRATIONS.

    Not more than $28,000,000 may be made available to carry out the 
School Dropout program under part C of title V of the Elementary and 
Secondary Education Act of 1965 for each of fiscal years 1996, 1997, 
1998, 1999, and 2000.

SEC. 10216. TRAINING IN EARLY CHILDHOOD EDUCATION AND VIOLENCE 
              COUNSELING.

    Not more than $13,875,000 may be made available to the Department 
of Education to carry out Early Childhood Education and Violence 
Training programs for each of fiscal years 1996, 1997, 1998, 1999, and 
2000.

SEC. 10217. CHARTER SCHOOLS.

    Not more than $6,000,000 may be made available to carry out the 
Charter Schools program under part C of title X of the Elementary and 
Secondary Education Act of 1965 for each of fiscal years 1996, 1997, 
1998, 1999, and 2000.

SEC. 10218. AUTHORIZED ACTIVITIES.

    Part A of title II of the Elementary and Seconday Education Act of 
1965 is amended by striking section 2101.

SEC. 10219. PROFESSIONAL DEVELOPMENT DEMONSTRATION PROJECT.

    Title II of the Elementary and secondary Education Act of 1965 is 
amended by striking part C.

SEC. 10220. IMMIGRANT EDUCATION.

    Title VII of the Elementary and Secondary Education Act of 1965 is 
amended by striking parts B and C.

SEC. 10221. EDUCATION FOR NATIVE HAWAIIANS.

    Title IX of the Elementary and Secondary Education Act of 1965 is 
amended by striking part B.

SEC. 10222. PROGRAMS OF NATIONAL SIGNIFICANCE.

    Title X of the Elementary and Secondary Education Act of 1965 is 
amended by striking parts A, G, and H.

SEC. 10223. LAW-RELATED EDUCATION.

    Part F of title X of the Elementary and Secondary Education Act of 
1965 is amended by striking section 10602.

SEC. 10224. PUBLIC LIBRARY CONSTRUCTION.

    Title III of the Improving America's Schools Act of 1994 is amended 
by striking part G.

SEC. 10225. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

    Title IV of the Improving America's Schools Act of 1994 is amended 
by striking section 411.

                 Subtitle D--Community Program Reforms

SEC. 10301. REPEAL OF THE NATIONAL FOUNDATION ON THE ARTS AND THE 
              HUMANITIES ACT OF 1965.

    (a) Repeal of the National Foundation on the Arts and the 
Humanities Act of 1965.--The National Foundation on the Arts and the 
Humanities Act of 1965 (20 U.S.C. 951-60) is repealed.
    (b) Transition Provisions.--The Director of the Office of 
Management and Budget shall provide for the termination of the affairs 
of the Federal entities terminated by the repeal made by subsection 
(a), including the appropriate transfer or other disposition of 
personnel, assets, liabilities, grants, contracts, property, records, 
and unexpended balances of appropriations, authorizations, allocations, 
and other funds held, used, arising from, available to, or to be made 
available in connection with implementing the authorities terminated by 
the repeal made by subsection (a).
    (c) Effective Date.--This section shall take effect on October 1, 
1995.

SEC. 10302. REPEAL OF NATIONAL AND COMMUNITY SERVICE ACT OF 1990, 
              DOMESTIC VOLUNTEER SERVICE ACT OF 1973, AND RELATED 
              PROVISIONS.

    (a) National and Community Service Act of 1990.--Effective October 
1, 1995, the National and Community Service Act of 1990 (42 U.S.C. 
12501 et seq.) is repealed.
    (b) Domestic Volunteer Service Act of 1973.--Effective October 1, 
1995, the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950 et 
seq.) is repealed.
    (c) Public Lands Corps.--Effective October 1, 1995, title II of 
Public Law 91-378 (16 U.S.C. 1721 et seq.), as added by section 105 of 
the National and Community Service Trust Act of 1993 (Public Law 103-
82; 107 Stat. 848), is repealed.
    (d) Urban Youth Corps.--Effective October 1, 1995, section 106 of 
the National and Community Service Trust Act of 1993 (42 U.S.C. 12656) 
is repealed.
    (e) National Guard Civilian Youth Opportunities Pilot Program.--
Effective October 1, 1995, section 1091 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 32 U.S.C. 
501 note) is repealed.
    (f) Effect of Repeal.--Upon the repeal of the provisions specified 
in this section, the President shall assign to an agency of the United 
States the responsibility for liquidating the affairs of the entities 
or activities eliminated as a result of the repeal. The property, 
records, and unexpended balances (available or to be made available) of 
appropriations, allocations, and other funds of the eliminated entities 
and activities shall be transferred to such agency. The repeal of such 
provisions shall not affect any obligation incurred by the eliminated 
entities and activities before October 1, 1995, and the agency 
responsible for liquidating the affairs of the eliminated entities and
 activities shall satisfy such obligations, subject to the same terms 
and conditions that would apply in the absence of the repeal.

SEC. 10303. REPEAL OF THE MUSEUM SERVICES ACT.

    (a) Repealer.--Title II of the Arts, Humanities, and Cultural 
Affairs Act of 1976 (20 U.S.C. 961-969) is repealed.
    (b) Effective Date.--Subsection (a) shall take effect on October 1, 
1995.

SEC. 10304. TERMINATE FEDERAL FUNDING FOR THE JOHN F. KENNEDY CENTER 
              FOR THE PERFORMING ARTS.

    Section 12 of the John F. Kennedy Center Act (20 U.S.C. 76r) is 
repealed.

SEC. 10305. REPEAL OF THE OLDER AMERICANS COMMUNITY SERVICE EMPLOYMENT 
              ACT.

    (a) Repealer.--Title V of the Older Americans Act of 1965 (42 
U.S.C. 3056-3056i) is repealed.
    (b) Effective Date.--Subsection (a) shall take effect on October 1, 
1995.

SEC. 10306. CONSOLIDATION OF CERTAIN SOCIAL SERVICE PROGRAMS.

    (a) Amendment to Title XX of the Social Security Act.--
            (1) Payments to states.--Section 2002(a)(2) of the Social 
        Security Act (40 U.S.C. 1397a(a)(2)) is amended--
                    (A) in subparagraph (A)--
                            (i) by inserting ``, services to meet 
                        housing and energy needs,'' after ``health 
                        support services'', and
                            (ii) by striking ``and'' at the end,
                    (B) in subparagraph (B)--
                            (i) in clause (ii) by striking ``and'' at 
                        the end,
                            (ii) in clause (iii) by striking the period 
                        at the end and inserting ``; and'', and
                            (iii) by inserting after clause (iii) the 
                        following:
                            ``(iv) activities--
                                    ``(I) to plan, develop, establish, 
                                expand, improve, or operate before- and 
                                after-school child care programs for 
                                school-age children, and resource and 
                                referral systems that provide 
                                information on dependent care services; 
                                and
                                    ``(II) to improve the quality of 
                                child care, and to increase the 
                                availability of early childhood 
                                development and before- and after-
                                school child care services.''.
            (2) Allotments.--Section 2003(c) of the Social Security Act 
        (40 U.S.C. 1397b(c)) is amended--
                    (A) in paragraph (4) by striking ``and'' at the 
                end,
                    (B) in paragraph (5) by striking ``each fiscal year 
                after fiscal year 1989.'' and inserting ``each of the 
                fiscal years 1990, 1991, 1992, 1993, 1994, and 1995; 
                and
                    (C) by adding at the end the following:
            ``(6) $4,009,379,000 for fiscal year 1996.''.
    (b) Repealers.--
            (1) Community Services Block Grant Act.--Subtitle B of 
        title VI of the Omnibus Budget Reconciliation Act of 1981 (42 
        U.S.C. 9901-9912) is repealed.
            (2) Child Care and Development Block Grant Act.--Subchapter 
        C of chapter 8 of subtitle A of title VI of the Omnibus Budget 
        Reconciliation Act of 1981 (42 U.S.C. 9858-9858S) is repealed.
            (3) State Dependent Care Development Grants Act.--
        Subchapter E of chapter 8 of subtitle A of title VI of the 
        Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9871-9877) 
        is repealed.
    (c) Effective Date.--Subsections (a) and (b) shall take effect on 
October 1, 1995.

SEC. 10307. AMENDMENTS TO THE OLDER AMERICANS ACT OF 1965.

    (a) Federal Council on the Aging.--Section 204(g) of the Older 
Americans Act of 1965 (42 U.S.C. 3015(g)) is amended--
            (1) by striking ``are'' and inserting ``is'', and
            (2) by striking ``$300,000'' and all that follows through 
        ``1995'', and inserting ``$176,000 for each of the fiscal years 
        1996, 1997, 1998, 1999, and 2000''.
    (b) Authorization of Appropriations for Title II of the Act.--
Section 215 of the Older Americans Act of 1965 (42 U.S.C. 3020f) is 
amended--
            (1) in subsection (a) by striking ``such sums'' and all 
        that follows through ``1995'', and inserting ``$16,524,000 for 
        each of the fiscal years 1996, 1997, 1998, 1999, and 2000'', 
        and
            (2) in subsection (b) by amending paragraph (1) to read as 
        follows:
            ``(1) $29,000,000 for each of the fiscal years 1996, 1997, 
        1998, 1999, and 2000; and''.
    (c) Authorization of Appropriations for Title III of the Act.--
            (1) Supportive services and senior centers.--Section 
        303(a)(1) of the Older Americans Act of 1965 (42 U.S.C. 
        3023(a)(1)) is amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``$461,376,000'' and all that 
                follows through ``1995'', and inserting ``$306,711,000 
                for each of the fiscal years 1996, 1997, 1998, 1999, 
                and 2000''.
            (2) Congregate nutrition services.--Section 303(b)(1) of 
        the Older Americans Act of 1965 (42 U.S.C. 3023(b)(1)) is 
        amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``$505,000,000'' and all that 
                follows through ``1995'', and inserting ``$375,809,000 
                for each of the fiscal years 1996, 1997, 1998, 1999, 
                and 2000''.
            (3) Home-delivered nutrition services.--Section 303(b)(2) 
        of the Older Americans Act of 1965 (42 U.S.C. 3023(b)(2)) is 
        amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``$120,000,000'' and all that 
                follows through ``1995'', and inserting ``$93,665,000 
                for each of the fiscal years 1996, 1997, 1998, 1999, 
                and 2000''.
            (4) School-based meals for volunteers.--Section 303(b)(3) 
        of the Older Americans Act of 1965 (42 U.S.C. 3023(b)(3)) is 
        amended-
                    (1) by striking ``are'' and inserting ``is'', and
                    (2) by striking ``fiscal year 1992'' and all that 
                follows through ``1995'', and inserting ``for each of 
                the fiscal years 1996, 1997, 1998, 1999, and 2000''.
            (5) In-home services.--Section 303(d) of the Older 
        Americans Act of 1965 (42 U.S.C. 3023(d)) is amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``$45,388,000'' and all that 
                follows through ``1995'', and inserting ``$7,075,000 
                for each of the fiscal years 1996, 1997, 1998, 1999, 
                and 2000''.
            (6) Special needs.--Section 303(e) of the Older Americans 
        Act of 1965 (42 U.S.C. 3023(e)) is amended by striking ``1992'' 
        and all that follows through ``1995'', and inserting ``1996, 
        1997, 1998, 1999, and 2000''.
            (7) Preventive health, health education, and promotion.--
        Section 303(f) of the Older Americans Act of 1965 (42 U.S.C. 
        3023(f)) is amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``$25,000,000'' and all that 
                follows through ``1995'', and inserting ``$16,982,000 
                for each of the fiscal years 1996, 1997, 1998, 1999, 
                and 2000''.
            (8) Supportive activities for caretakers.--Section 303(g) 
        of the Older Americans Act of 1965 (42 U.S.C. 3023(g)) is 
        amended--
            (A) by striking ``are'' and inserting ``is'', and
            (B) by striking ``fiscal year 1992'' and all that follows 
        through ``1995'', and inserting ``each of the fiscal years 
        1996, 1997, 1998, 1999, and 2000''.
            (9) Purchase of agricultural commodities for nutrition 
        services.--Section 311(c)(1)(A) of the Older Americans Act of 
        1965 (42 U.S.C. 3030a(c)(1)(A)) is amended--
                    (A) by striking ``are'' and inserting ``is'',
                    (B) by striking ``$250,000,000'' and all that 
                follows through ``1994, and'', and
                    (C) by striking ``fiscal year 1995'' and inserting 
                ``each of the fiscal years 1996, 1997, 1998, 1999, and 
                2000''.
    (d) Authorization of Appropriations for Title IV of the Act.--
            (1) Training, research, and discretionary projects and 
        programs.--Section 431(a)(1) of the Older Americans Act of 1965 
        (42 U.S.C. 3037(a)(1)) is amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``$72,000,000'' and all that 
                follows through ``1995'', and inserting ``$25,735,000 
                for each of the fiscal years 1996, 1997, 1998, 1999, 
                and 2000''.
            (2) Training.--Section 431(b) of the Older Americans Act of 
        1965 (42 U.S.C. 3037(b)) is amended by striking ``1992'' and 
        all that follows through ``1995'', and inserting ``1996, 1997, 
        1998, 1999, and 2000''.
    (e) Authorization of Appropriations for Title VI of the Act.--
Section 633(a) of the Older Americans Act of 1965 (42 U.S.C. 3037n(a)) 
is amended--
            (1) by striking ``are'' and inserting ``is'', and
            (2) by striking ``$30,000,000'' and all that follows 
        through ``1995'', and inserting ``$16,902,000 for each of the 
        fiscal years 1996, 1997, 1998, 1999, and 2000''.
    (f)  Authorization of Appropriations for Title VII of the Act.--
            (1) Ombudsman program.--Section 702(a) of the Older 
        Americans Act of 1965 (42 U.S.C. 3058a(a)) is amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``$40,000,000'' and all that 
                follows through ``1995'', and inserting ``$4,370,000 
                for each of the fiscal years 1996, 1997, 1998, 1999, 
                and 2000''.
            (2) Prevention of elder abuse, neglect, and exploitation.--
        Section 702(b) of the Older Americans Act of 1965 (42 U.S.C. 
        3058a(b)) is amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``$15,000,000'' and all that 
                follows through ``1995'', and inserting ``$4,638,000 
                for each of the fiscal years 1996, 1997, 1998, 1999, 
                and 2000''.
            (3) State elder rights and legal assistance development 
        program.--Section 702(c) of the Older Americans Act of 1965 (42 
        U.S.C. 3058a(c)) is amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``fiscal year 1992'' and all that 
                follows through ``1995'', and inserting ``each of the 
                fiscal years 1996, 1997, 1998, 1999, and 2000''.
            (4)  Outreach, counseling, and assistance program.--Section 
        702(d) of the Older Americans Act of 1965 (42 U.S.C. 3058a(d)) 
        is amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``$15,000,000'' and all that 
                follows through ``1995'', and inserting ``$1,976,000 
                for each of the fiscal years 1996, 1997, 1998, 1999, 
                and 2000''.
            (5) Native american organization provision.--Section 751(d) 
        of the Older Americans Act of 1965 (42 U.S.C. 3058aa(d)) is 
        amended--
                    (A) by striking ``are'' and inserting ``is'', and
                    (B) by striking ``fiscal year 1992'' and all that 
                follows through ``1995'', and inserting ``for each of 
                the fiscal years 1996, 1997, 1998, 1999, and 2000''.
    (g) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995.

SEC. 10308. TERMINATION OF FUNDING FOR THE CORPORATION FOR PUBLIC 
              BROADCASTING

    Part IV of title III of the Communications Act of 1934 (47 U.S.C. 
390 to 399b), relating to assistance for public telecommunications 
facilities, telecommunications demonstrations, and the Corporation for 
Public Broadcasting, is repealed.

                 Subtitle E--Employment Program Reform

SEC. 10401. TERMINATION OF GENERAL TRADE ADJUSTMENT ASSISTANCE.

    (a) Termination of Program Extension.--(1) Section 285(c)(1) of the 
Trade Act of 1974 (19 U.S.C. 2271 preceding note), is amended by 
striking ``1998'' and inserting ``1995''.
    (2) Section 245(a) of the Trade Act of 1974 (19 U.S.C. 2317(a)) is 
amended by striking ``each of the fiscal years 1993, 1994, 1995, 1996, 
1997, and 1998'' and inserting ``fiscal year 1995''.
    (b) Conforming Amendment.--Section 236(a)(2)(A) of the Trade Act of 
1974 (19 U.S.C. 2296(a)(2)(A)) is amended by striking ``, except that'' 
and all that follows through ``$70,000,000''.

SEC. 10402. EXTENSION TO ALL STATES OF RULE PROVIDING FOR REDUCTION OF 
              SOCIAL SECURITY DISABILITY INSURANCE BENEFITS UPON 
              RECEIPT OF WORKERS' COMPENSATION BENEFITS.

    (a) Preemption of State Laws Reducing Periodic Benefits by Reason 
of Entitlement to Disability Insurance Benefits.--Section 224(d) of the 
Social Security Act (42 U.S.C. 224a(d)) is amended to read as follows:
    ``(d) The provisions of this section shall supersede any provision 
of a law or plan of any State, of any political subdivision (as that 
term is used in section 218(b)(2)), or of any instrumentality of two or 
more States (as that term is used in section 218(g)) to the extent that 
the effect of such provision is to reduce periodic benefits referred to 
in subparagraph (A) or (B) of subsection (a)(2) of any individual under 
such law or plan on the basis of the entitlement of such individual to 
benefits under section 223.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to individuals who first become entitled to benefits 
under section 223(a) of the Social Security Act for months beginning on 
or after January 1, 1996.

SEC. 10403. SERVICE CONTRACT ACT OF 1965.

    (a) Repeal.--The Service Contract Act of 1965 (41 U.S.C. 351 et 
seq.) is repealed.
    (b) Application.--The amendment made by subsection (a) shall not 
apply to a contract which was entered into before the date of the 
enactment of this Act and to which the Service Contract Act of 1965 
applied.
SEC. 10404. REDUCTION IN OVERHEAD EXPENSES OF DEPARTMENT OF LABOR.

    (a) In General.--The amount obligated by the Department of Labor 
during fiscal year 1996 for overhead expenses shall not exceed an 
amount sufficient to reduce outlays for such expenses during such 
fiscal year (as compared to such outlays during fiscal year 1995) by 
$67,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).
                            TITLE XI--HEALTH

                   Subtitle A--Administrative Reform

SEC. 11001. REDUCTION IN OVERHEAD EXPENSES OF DEPARTMENT OF HEALTH AND 
              HUMAN SERVICES.

    (a) In General.--The amount obligated by the Department of Health 
and Human Services during fiscal year 1996 for overhead expenses shall 
not exceed an amount sufficient to reduce outlays for such expenses 
during such fiscal year (as compared to such outlays during fiscal year 
1995) by $346,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).

   Subtitle B--University Research Regarding Health and Other Matters

SEC. 11101. FEDERALLY-SUPPORTED UNIVERSITY RESEARCH; REDUCTION IN RATES 
              FOR INDIRECT COSTS OF RESEARCH.

    (a) Authority of Federal Agencies Regarding Indirect Costs of 
Supported Research.--In making an award of financial assistance to an 
institution of higher education for a fiscal year for a project of 
research, the head of the Federal agency involved is subject to the 
following:
            (1) The agency head may in accordance with this section 
        authorize the institution to expend a portion of the award for 
        costs that are indirectly related to the conduct of the 
        project, and are appropriate for the institution to maintain 
        the program or programs of which the project is a part (which 
        costs regarding a project of research are referred to in this 
        section as ``indirect costs'').
            (2) The agency head may not make the award for the project 
        unless the institution--
                    (A) agrees that the award will be expended for the 
                indirect costs of the project only in accordance with 
                determinations made under this section by the agency 
                head regarding the project; and
                    (B) certifies to the agency head that each award of 
                financial assistance provided by the agency head to the 
                institution for the immediately preceding fiscal year 
                for a project of research was expended in accordance 
                with the determinations made under this section 
                regarding the project.
    (b) Direct and Indirect Costs as Total Amount of Assistance.--With 
respect to a project of research for which the head of a Federal agency 
is under subsection (a)(1) authorizing an award for a fiscal year to be 
expended for indirect costs, the total amount of the award provided for 
the project for such year shall consist of an amount provided for the 
direct costs of the project, together with the sum of--
            (1) the aggregate amount the agency head determines under 
        subparagraph (A) of subsection (c)(1) for the administrative 
        categories of indirect cost; and
            (2) the aggregate amount the agency head determines under 
        subparagraph (B) of such subsection for the nonadministrative 
        categories of such costs.
    (c) Determination of Amounts for Administrative and 
Nonadministrative Categories.--
            ``(1) In general.--With respect to a project of research 
        for which the head of a Federal agency is under subsection 
        (a)(1) authorizing an award for a fiscal year to be expended 
        for indirect costs, the agency head, after consultation with 
        the institution of higher education involved and after 
        consideration of relevant records and materials, shall make a 
        determination of--
                    ``(A) the amount, expressed as a percentage in 
                accordance with paragraph (2), that is authorized to be 
                expended for the administrative categories of indirect 
                cost (determined individually for each of such 
                categories or determined in the aggregate for the 
                categories); and
                    ``(B) the amount, expressed as a percentage in 
                accordance with paragraph (2), that is authorized to be 
                made for the nonadministrative categories of indirect 
                cost (determined individually for each of such 
                categories or determined in the aggregate for the 
                categories).
            ``(2) Category percentages; modified direct costs.--The 
        amounts determined under subparagraphs (A) and (B) of paragraph 
        (1) for a fiscal year with respect to a project of research 
        shall be determined as a percentage of the modified direct 
        costs of the project. The percentage so determined may not 
        exceed the applicable percentage specified in subsection (d), 
        and shall be in effect only during the fiscal year for which 
        the financial assistance involved is provided.
    (d) General Limitations Regarding Category Percentages.--
            (1) Reduction in rate for administrative categories.--With 
        respect to an award made by the head of a Federal agency to an 
        institution of higher education for a fiscal year
         for a project of research, the percentage determined under 
subsection (c)(2) for the fiscal year for an administrative category of 
indirect costs may not exceed 90 percent of an amount equal to the mean 
average of the percentages applicable to the institution for the 
category for awards by the agency head to the institution for fiscal 
year 1995.
            (2) Reduction in rate for nonad- ministrative categories.--
        With respect to an award made by the head of a Federal agency 
        to an institution of higher education for a fiscal year for a 
        project of research, the percentage determined under subsection 
        (c)(2) for the fiscal year for a nonadministrative category of 
        indirect costs may not exceed 90 percent of an amount equal to 
        the mean average of the percentages applicable to the 
        institution for the category for awards by the agency head to 
        the institution for fiscal year 1995.
    (e) Institution-Specific Uniform Rates Across Awards.--With respect 
to multiple awards made by the head of a Federal agency to an 
institution of higher education for a fiscal year for projects of 
research, the agency head may, for each of the categories of indirect 
costs (administrative and nonadministrative), determine a single 
percentage under subsection (c) that will be applicable to the category 
for all such awards by the agency head to the institution for the 
fiscal year. Any such determination is subject to subsection (d).
    (f) Failure To Comply With Limitation.--In the case of an 
institution of higher education making an agreement under subsection 
(a)(2) regarding expenditures for the indirect costs of a project of 
research, if the head of the Federal agency involved determines that 
the institution has made an expenditure in violation of the agreement, 
the agency head shall recover from the institution an amount equal to 
the amount of the expenditure, together with an amount representing 
interest on the amount of such expenditure.
    (g) Definitions.--For purposes of this section:
            (1) The term ``administrative categories'', with respect to 
        the indirect costs of a project of research, means the 
        categories of general administration, departmental 
        administration, and administration of the project of research 
        involved (also known as sponsored project administration).
            (2) The term ``award'' means an award of financial 
        assistance.
            (3) The term ``direct costs'', with respect to a project of 
        research, has the meaning given such term by the Director of 
        the Office of Management and Budget.
            (4) The term ``Federal agency'' means each department, 
        agency or instrumentality of the Federal Government, including 
        an executive agency as defined in section 105 of title 5, 
        United States Code.
            (5) The term ``financial assistance'', with respect to a 
        project of research, means a grant, cooperative agreement, or 
        contract.
            (6)(A) The term ``indirect cost'', with respect to a 
        project of research, means the costs described in subsection 
        (a)(1), consisting of the 7 categories described in 
        subparagraph (B), as such costs (and categories) are defined in 
        the document issued by the Director of the Office of Management 
        and Budget and designated by such Director as OMB Circular A-21 
        (or as defined in any document issued by such Director as a 
        successor to OMB Circular A-21), except that such term does not 
        include any cost disallowed for purposes of title 48, Code of 
        Federal Regulations (relating to the Federal Acquisition 
        Regulations System).
            (B) The categories referred to in subparagraph (A) are the 
        categories of general administration, departmental 
        administration, administration of the project of research 
        involved (also known as sponsored project administration), 
        operations and maintenance, student services (in the case of an 
        entity that is an educational institution), libraries (in the 
        case of such an entity), and buildings and equipment.
            (7) The term ``institution of higher education'' has the 
        meaning given such term in section 1201(a) of the Higher 
        Education Act of 1965.
            (8) The term ``modified direct costs'', with respect to a 
        project of research, has the meaning given such term by the 
        Director of the Office of Management and Budget.
            (9) The term ``nonadministrative categories'', with respect 
        to the indirect costs of a project of research, means the 
        categories of operations and maintenance, student services (in 
        the case of an entity that is an educational institution), 
        libraries (in the case of such an entity), and buildings and 
        equipment.
    (h) Effective Date.--This section is effective in the case of 
awards of financial assistance made for fiscal year 1996 or any 
subsequent fiscal year.

SEC. 11102. REDUCTION IN BUDGET OF NATIONAL INSTITUTES OF HEALTH.

    Title IV of the Public Health Service Act (42 U.S.C. 281 et seq.) 
is amended by adding at the end the following part:

     ``Part J--Reduction in Budget of National Institutes of Health

                         ``reduction in budget

    ``Sec. 499B. (a) 1995 Levels Less Savings Regarding Indirect Cost 
Rates.--Notwithstanding any other provision of law, the authorizations 
of appropriations established for carrying out this title for a fiscal 
year are effective only to the extent that the authorizations for the 
fiscal year do not, in the aggregate, exceed the following amount, as 
applicable to the fiscal year: $10,841,598,000 for fiscal year 1996, 
$10,475,098,000 for fiscal year 1997, $10,109,598,000 for fiscal year 
1998, $10,071,098,000 for fiscal year 1999, and $10,032,598,000 for 
fiscal year 2000.
    ``(b) Presumed Per-Program Authorization Level.--For each of the 
fiscal years specified in subsection (a), the authorization of 
appropriations for each program under this title is deemed to be an 
amount equal to the appropriation made for the program for the 
preceding fiscal year, unless a provision of this title specifies that 
this subsection is not applicable to the program.
    ``(c) Pro Rata Reductions in Authorizations.--If the aggregate of 
the authorizations of appropriations established for carrying out this 
title for a fiscal year (including authorizations established under 
subsection (b)) exceeds the amount applicable under subsection (a) to 
the fiscal year, each such authorization is reduced pro rata by the 
amount necessary for the aggregate of the authorizations to equal the 
applicable amount.''.
SEC. 11103. REDUCTION IN HEALTH PROFESSIONS BUDGET OF HEALTH RESOURCES 
              AND SERVICES ADMINISTRATION.

    Title VII of the Public Health Service Act (42 U.S.C. 292 et seq.) 
is amended by adding at the end the following part:

            ``PART H--REDUCTION IN HEALTH PROFESSIONS BUDGET

``SEC. 799A. PROGRAMS FOR MINORITY AND DISADVANTAGED STUDENTS AS 
              EXCLUSIVE TITLE VII PROGRAMS.

    ``(a) Effect on Other Programs.--For fiscal year 1996 or any 
subsequent fiscal year, the authorization of appropriations established 
in subsection (b) for the fiscal year is the exclusive authorization of 
appropriations for such year under this title, except as provided in 
subsection (c). The preceding sentence applies notwithstanding any 
other provision of law.
    ``(b) Authorizations of Appropriations Regarding Minority and 
Disadvantaged Students.--For the purpose of carrying out programs under 
this title that are designed to increase the enrollment of minority and 
economically disadvantaged students, there are authorized to be 
appropriated such sums as may be necessary for each of the fiscal years 
1996 through 1998.
    ``(c) Exception Regarding Federal Responsibilities Under Program 
for Health Education Assistance Loans to Graduate Students.--Subsection 
(a) does not apply to the authorization of appropriations established 
in section 720. The preceding sentence does not provide any credit 
authority for such program in addition to that provided in section 
702.''.

SEC. 11104. CLOSURE OF UNIFORMED SERVICES UNIVERSITY OF THE HEALTH 
              SCIENCES.

    (a) Closure Required.--Section 2112 of title 10, United States 
Code, is amended--
            (1) in subsection (c)--
                    (A) by inserting ``and the closure'' after ``The 
                development''; and
                    (B) by striking out ``subsection (a)'' and 
                inserting in lieu thereof ``subsections (a) and (b)''; 
                and
            (2) by striking out subsection (b) and inserting in lieu 
        thereof the following new subsection:
    ``(b)(1) Not later than September 30, 1998, the Secretary of 
Defense shall close the University. To achieve the closure of the 
University by that date, the Secretary shall begin to terminate the 
operations of the University beginning in fiscal year 1995. On account 
of the required closure of the University under this subsection, no 
students may be admitted to begin studies in the University after the 
date of the enactment of this subsection.
    ``(2) Section 2687 of this title and any other provision of law 
establishing preconditions to the closure of any activity of the 
Department of Defense shall not apply with regard to the termination of 
the operations of the University or to the closure of the University 
pursuant to this subsection.''.
    (b) Final Graduation of Students.--Section 2112(a) of such title is 
amended--
            (1) in the second sentence, by striking out ``, with the 
        first class graduating not later than September 21, 1982.'' and 
        inserting in lieu thereof ``, except that no students may be 
        awarded degrees by the University after September 30, 1998.''; 
        and
            (2) by adding at the end the following new sentence: ``On a 
        case-by-case basis, the Secretary of Defense may provide for 
        the continued education of a person who, immediately before the 
        closure of the University under subsection (b), was a student 
        in the University and completed substantially all requirements 
        necessary to graduate from the University.''.
    (c) Termination of University Board of Regents.--Section 2113 of 
such title is amended by adding at the end the following new 
subsection:
    ``(k) The Board shall terminate on September 30, 1998, except that 
the Secretary of Defense may terminate the Board before that date as 
part of the termination of the operations of the University under 
section 2112(b) of this title.''.
    (d) Prohibition on Reciprocal Agreements.--Section 2114(e)(1) of 
such title is amended by adding at the end the following new sentence: 
``No agreement may be entered into under this subsection after the date 
of the enactment of this sentence, and all such agreements shall 
terminate not later than September 30, 1998.''.
    (e) Conforming Amendments.--(1) Section 178 of such title, relating 
to the Henry M. Jackson Foundation for the Advancement of Military 
Medicine, is amended--
            (A) in subsection (b), by inserting after ``Uniformed 
        Services University of the Health Sciences,'' the following: 
        ``or after the closure of the University, with the Department 
        of Defense,'';
            (B) in subsection (c)(1)(B), by striking out ``the Dean of 
        the Uniformed Services University of the Health Sciences'' and 
        inserting in lieu thereof ``a person designated by the 
        Secretary of Defense''; and
            (C) in subsection (g)(1), by inserting after ``Uniformed 
        Services University of the Health Sciences,'' the following: 
        ``or after the closure of the University, the Secretary of 
        Defense''.
    (2) Section 466(a)(1)(B) of the Public Health Service Act (42 
U.S.C. 286a(a)(1)(B)), relating to the Board of Regents of the National 
Library of Medicine, is amended by striking out ``the Dean of the 
Uniformed Services University of the Health Sciences,''.
    (f) Clerical Amendments.--(1) The heading of section 2112 of title 
10, United States Code, is amended to read to read as follows:
``Sec. 2112. Establishment and closure of University''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 104 of such title is amended to read as 
follows:

``2112. Establishment and closure of University.''.
                      Subtitle C--Medicaid Reforms

SEC. 11201. REDUCTION IN FEDERAL PAYMENTS FOR DISPROPORTIONATE SHARE 
              HOSPITALS.

    (a) In General.--Section 1923 of the Social Security Act (42 U.S.C. 
1396r-4) is amended by adding at the end the following new subsection:
    ``(h) Reduction in Federal Financial Participation for 
Disproportionate Share Adjustments.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, the amount of payments under section 1903(a) with 
        respect to any payment adjustment made under this section for 
        hospitals in a State for quarters in a fiscal year shall not 
        exceed the applicable percentage of the amount otherwise 
        determined under subsection (f)
            ``(2) Applicable percentage defined.--In paragraph (1), the 
        applicable percentage for a fiscal year is as follows:
                    ``(A) For fiscal year 1995, 80 percent.
                    ``(B) For fiscal year 1996, 70 percent.
                    ``(C) For fiscal year 1997, 55 percent.
                    ``(D) For fiscal year 1998, 40 percent.''.
    (b) Conforming Amendment.--Section 1923(c) of such Act (42 U.S.C. 
1396r-4(c)) is amended in the matter preceding paragraph (1) by 
striking ``(f) and (g)'' and inserting ``(f), (g), and (h)''.

SEC. 11202. IMPOSITION OF STATE LIMITS ON APPROVED NURSING FACILITY 
              BEDS.

    (a) State Plan Requirement.--Section 1902(a) of the Social Security 
Act (42 U.S.C. 1396a(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (61);
            (2) by striking the period at the end of paragraph (62) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (62) the following new 
        paragraph:
            ``(63) provide that the State agency shall provide 
        assurances satisfactory to the Secretary that the State has in 
        effect laws prohibiting a nursing facility from opening 
        additional beds without a certificate of need issued by the 
        State in accordance with guidelines established by the State 
        and approved by the Secretary based on the ratio of nursing 
        facility beds to the number of individuals residing in the 
        applicable area who are likely to use such beds.''.
    (b) Effective Date.--(1) Except as provided in paragraph (2), the 
amendments made by subsection (a) shall apply to calendar quarters 
beginning on or after October 1, 1995, without regard to whether or not 
final regulations to carry out such amendments have been promulgated by 
such date.
    (2) In the case of a State plan for medical assistance under title 
XIX of the Social Security Act which the Secretary of Health and Human 
Services determines requires State legislation (other than legislation 
appropriating funds) in order for the plan to meet the additional 
requirements imposed by the amendments made by subsection (a), the 
State plan shall not be regarded as failing to comply with the 
requirements of such title solely on the basis of its failure to meet 
these additional requirements before the first day of the first 
calendar quarter beginning after the close of the first regular session 
of the State legislature that begins after the date of the enactment of 
this Act. For purposes of the previous sentence, in the case of a State 
that has a 2-year legislative session, each year of such session shall 
be deemed to be a separate regular session of the State legislature.

SEC. 11203. REDUCING TO 50 PERCENT THE MATCHING RATE FOR ADMINISTRATIVE 
              COSTS UNDER THE MEDICAID PROGRAM.

    (a) In General.--Section 1903(a) of the Social Security Act (42 
U.S.C. 1396b(a)) is amended to read as follows:
    ``(a) From the sums appropriated therefore, the Secretary (except 
as otherwise provided in this section) shall pay to each State that has 
a plan approved under this title, for each quarter--
            ``(1) an amount with respect to total expenditures during 
        such quarter under the State plan for medical assistance (as 
        defined in section 1905(a)) equal to the sum of--
                    ``(A) an amount equal to 90 percent of such 
                expenditures for family planning services and supplies, 
                plus
                    ``(B) an amount equal to the Federal medical 
                assistance percentage (as defined in section 1905(b), 
                subject to subsections (g) and (j) of this section), of 
                the remainder of such expenditures; plus
            ``(2) subject to section 1919(g)(3)(C), an amount equal to 
        45 percent of the remainder of the expenditures during such 
        quarter as found necessary by the Secretary for the proper and 
        efficient administration of the State plan.''.
    (b) Conforming Amendments.--
            (1) Fraud control units.--Section 1903(b) of such Act (42 
        U.S.C. 1396b(b)) is amended by striking paragraph (3).
            (2) Medicaid management information systems.--Section 
        1903(r) of such Act (42 U.S.C. 1396b(r)) is amended--
                    (A) by amending paragraph (1) to read as follows:
    ``(1) In order to receive payments under subsection (a)(2) without 
being subject to per centum reductions set forth in paragraph (2), a 
State must have in operation mechanized claims processing and 
information retrieval systems approved by the Secretary (of the type 
approved since October 7, 1980) which are determined to be likely to 
provide more efficient, economical, and effective administration of the 
plan and which--
            ``(A) are compatible with the claims processing and 
        information retrieval systems used in the administration of 
        title XVIII, and
            ``(B) include provision for prompt written notice to each 
        individual who is furnished services covered by the plan, or to 
        each individual in a sample group of such individuals, of the 
        specific services (other than confidential services) so 
        covered, the name of the person or persons furnishing the 
        services, the date or dates on which the services were 
        furnished, and the amount of the payment or payments made under 
        the plan on account of the services.'';
                    (B) by striking paragraphs (2) and (3), and 
                redesignating paragraphs (4) through (8) as paragraphs 
                (2) through (6), respectively;
                    (C) in paragraph (2), as so redesignated--
                            (i) in subparagraph (A), by striking 
                        ``paragraph (6)'' and inserting ``paragraph 
                        (4)'', and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``subsection 
                                (a)(3)(B)'' and inserting ``subsection 
                                (a)(2)''; and
                                    (II) by striking ``not less than 50 
                                per centum and not more than 70 per 
                                centum'' and inserting ``not less than 
                                25 per centum and not more than 45 per 
                                centum'';
                    (D) in paragraph (3), as so redesignated--
                            (i) in the matter in subparagraph (A) 
                        preceding clause (i), by striking ``subsection 
                        (a)(3)(B)'' and inserting ``paragraph (1)'', 
                        and
                            (ii) in subparagraphs (A)(iii) and (B), by 
                        striking ``paragraph (6)'' and inserting 
                        ``paragraph (4)''; and
                    (E) in paragraph (4), as so redesignated--
                            (i) by striking subparagraph (C) and 
                        redesignating subparagraphs (D) through (J) as 
                        subparagraphs (C) through (I), and
                            (ii) in subparagraph (H), as redesignated, 
                        by striking ``subsection (a)(3) of this 
                        section'' and inserting ``subsection (a)(2)''.
            (3) Nursing home enforcement.--Section 1919 of such Act (42 
        U.S.C. 1396r) is amended--
                    (A) in subsection (g)(3)(C), by striking ``section 
                1903(a)(2)(D)'' and inserting ``section 1903(a)(2) with 
                respect to amounts expended for State activities under 
                this subsection'', and
                    (B) in subsection (h)(2), by striking 
                ``1903(a)(7)'' and inserting ``1903(a)(2)'' each place 
                it appears in subparagraphs (E) and (F).
            (4) Peer review funding.--Section 1158 of such Act (42 
        U.S.C. 1320c-7) is amended--
                    (A) by striking ``(a)'', and
                    (B) by striking subsection (b).
    (c) Effective Date.--The amendments made by this section shall 
apply to quarters beginning on or after October 1, 1995.

            Subtitle D--Reforms in Health Care Block Grants

SEC. 11301. CONSOLIDATION OF CERTAIN BLOCK GRANTS.

    (a) In General.--Title XIX of the Public Health Service Act (42 
U.S.C. 300w et seq.) is amended by adding at the end the following 
part:

         ``Part C--Consolidation of Health-Related Block Grants

``SEC. 1981. CONSOLIDATED PROGRAM OF FORMULA GRANTS.

    ``In the case of each State that in accordance with section 1983 
submits to the Secretary an application for fiscal year 1996 or any 
subsequent fiscal year, the Secretary shall make a grant for the year 
to the State for the purposes specified in section 1982. The grant 
shall consist of the allotment determined for the State under section 
1984.

``SEC. 1982. PURPOSES OF GRANTS; EFFECT ON SEPARATE PROGRAMS.

    ``(a) In General.--The Secretary may make a grant under section 
1981 only if the State involved agrees that the grant will be expended 
only for the purposes authorized in any of the following programs (as 
in effect for fiscal year 1995):
            ``(1) The program under part A of this title (relating to 
        block grants for preventive health and health services).
            ``(2) The program under subpart 1 of part B of this title 
        (relating to block grants for community mental health 
        services).
            ``(3) The program under subpart 2 of part B of this title 
        (relating to block grants for the prevention and treatment of 
        substance abuse).
            ``(4) The program under title V of the Social Security Act 
        (relating to block grants for maternal and child health 
        services).
    ``(b) Effect on Separate Programs.--For fiscal year 1996 and 
subsequent fiscal years:
            ``(1) No amounts are authorized to be appropriated under 
        any of the programs specified in subsection (a), 
        notwithstanding any other provision of law.
            ``(2) The programs are in effect only to the extent 
        provided in subsection (a).
    ``(c) Rule of Construction.--With respect to compliance with the 
agreement made by a State under subsection (a):
            ``(1) The State may expend a grant under section 1981 for 
        any or all of the purposes authorized in the four programs 
        specified in such subsection.
            ``(2) The State is not required to expend the grant for 
        each of the four categories of services or activities with 
        which the four programs were, respectively, concerned.

``SEC. 1983. APPLICATION FOR GRANT.

    ``The Secretary may make a grant under section 1981 only if an 
application for the grant is submitted to the Secretary by the date 
specified by the Secretary, and the application is in such form, is 
made in such manner, and contains such agreements, assurances, and 
information as the Secretary determines to be necessary to carry out 
this part.

``SEC. 1984. AMOUNT OF ALLOTMENT.

    ``(a) In General.--
            ``(1) Allotment.--For purposes of section 1981--
                    ``(A) the allotment determined under this section 
                for a State for a fiscal year is, subject to subsection 
                (g), the sum of the respective amounts determined for 
                the State under subsections (b) through (e); and
                    ``(B) the allotment determined under this section 
                for a territory for a fiscal year is the amount 
                determined under subsection (h).
            ``(2) Applicability to territories.--For purposes of this 
        part, the term `State' means each of the several States and 
        each of the territories, except that, for purposes of paragraph 
        (1) and subsections (b) through (g), such term does not include 
        any territory.
    ``(b) Amount Relating to Formulas in Program for Preventive Health 
and Health Services.--For purposes of subsection (a)(1)(A), the amount 
under this subsection for a State for a fiscal year shall be determined 
as follows:
            ``(1) The Secretary shall determine an amount equal to 6.7 
        percent of the amount that is appropriated under section 1986 
        for the fiscal year and available after compliance with section 
        1986(b).
            ``(2) Of the amount determined under paragraph (1), 97.2 
        percent shall be applied to the formula in effect under 
        subsection (a) of section 1902 for fiscal year 1995.
            ``(3) Of the amount determined under paragraph (1), 2.8 
        percent shall be applied to the formula in effect under 
        subsection (b) of section 1902 for fiscal year 1995.
            ``(4) The amount determined under this subsection for the 
        fiscal year is the sum of the amount resulting under paragraph 
        (2) and the amount resulting under paragraph (3).
    ``(c) Amount Relating to Formula in Program for Community Mental 
Health Services.--For purposes of subsection (a)(1)(A), the amount 
under this subsection for a State for a fiscal year shall be determined 
as follows:
            ``(1) The Secretary shall determine an amount equal to 11.7 
        percent of the amount that is appropriated under section 1986 
        for the fiscal year and available after compliance with section 
        1986(b).
            ``(2) The amount determined under paragraph (1) shall be 
        applied to the formula in effect under subsection (a) of 
        section 1918 for fiscal year 1995, and after application of the 
        formula shall be adjusted to the extent required by subsection 
        (b) of such section (as in effect for fiscal year 1995).
            ``(3) The amount determined under this subsection for the 
        fiscal year is the amount resulting under paragraph (2).
    ``(d) Amount Relating to Formula in Program for Prevention and 
Treatment of Substance Abuse.--For purposes of subsection (a)(1)(A), 
the amount under this subsection for a State for a fiscal year shall be 
determined as follows:
            ``(1) The Secretary shall determine an amount equal to 52.5 
        percent of the amount that is appropriated under section 1986 
        for the fiscal year and available after compliance with section 
        1986(b).
            ``(2) The amount determined under paragraph (1) shall be 
        applied to the formula in effect under subsection (a) of 
        section 1933 for fiscal year 1995, and after application of the 
        formula shall be adjusted to the extent required by subsection 
        (b) of such section (as in effect for fiscal year 1995).
            ``(3) The amount determined under this subsection for the 
        fiscal year is the amount resulting under paragraph (2).
    ``(e) Amount Relating to Formula in Program for Maternal and Child 
Health Services.--For purposes of subsection (a)(1)(A), the amount 
under this subsection for a State for a fiscal year shall be determined 
as follows:
            ``(1) The Secretary shall determine an amount equal to 29.1 
        percent of the amount that is appropriated under section 1986 
        for the fiscal year and available after compliance with section 
        1986(b).
            ``(2) The amount determined under paragraph (1) shall be 
        applied to the formula in effect under section 502(c)(2) of the 
        Social Security Act for fiscal year 1995.
            ``(3) The amount determined under this subsection for the 
        fiscal year is the amount resulting under paragraph (2).
    ``(f) Rules of Construction.--For purposes of subsections (b) 
through (e):
            ``(1) In applying an amount to a formula, the amount shall 
        be used in the formula in lieu of the funds that otherwise 
        would be allocated by the formula.
            ``(2) With respect to the data to be used in the formula, 
        the Secretary shall use the most recent data that is reasonably 
        available to the Secretary (subject to any restrictions in the 
        formula).
    ``(g) Funds for Tribes and Tribal Organizations.--
            ``(1) In general.--From the allotment determined for a 
        State for a fiscal year pursuant to subsection (a)(1)(A), the 
        Secretary shall reserve an amount determined in accordance with 
        paragraph (4) if the Secretary--
                    ``(A) receives a request from the governing body of 
                an Indian tribe or tribal organization within the State 
                that funds under this part be provided directly by the 
                Secretary to such tribe or organization; and
                    ``(B) makes a determination that the members of 
                such tribe or tribal organization would be better 
                served by means of grants made directly by the 
                Secretary under this.
            ``(2) Tribe or tribal organization as grantee.--The amount 
        reserved by the Secretary on the basis of a determination under 
        paragraph (1) shall, subject to paragraph (3), be granted to 
        the Indian tribe or tribal organization serving the individuals 
        for whom such a determination has been made.
            ``(3) Required plan.--The Secretary may make a grant under 
        this subsection for a fiscal year only if the Indian tribe or 
        tribal organization involved submits to the Secretary a plan 
        for the fiscal year that meets such criteria as the Secretary 
        may prescribe.
            ``(4) Amount of grant.--For purposes of paragraph (1), the 
        amount reserved under this paragraph for a fiscal year for an 
        Indian tribe or tribal organization shall be determined as 
        follows:
                    ``(A) The Secretary shall determine an amount equal 
                to the difference between--
                            ``(i) the allotment made pursuant to 
                        subsection (a)(1)(A) for the fiscal year for 
                        the State involved; and
                            ``(ii) the amount determined for the State 
                        under subsection (e) for the fiscal year.
                    ``(B) The amount reserved under this paragraph for 
                the fiscal year is the product of--
                            ``(i) the amount determined under 
                        subparagraph (A); and
                            ``(ii) a percentage equal to the ratio of--
                                    ``(I) the aggregate amount received 
                                by the Indian tribe or tribal 
                                organization for fiscal year 1995 under 
                                parts A and B; over
                                    ``(II) the aggregate amounts 
                                received by the State involved under 
                                such parts for fiscal year 1995.
            ``(5) Definition.--The terms `Indian tribe' and `tribal 
        organization' have the same meaning given such terms in 
        subsections (b) and (c) of section 4 of the Indian Self-
        Determination and Education Assistance Act.
    ``(h) Allotments for Territories.--For purposes of section 1981, 
the allotment under this section for a territory for a fiscal year 
shall be made from amounts reserved under section 1986(b), and the 
amount of the allotment shall be determined in a manner equivalent to 
the manner in which an allotment for a State is determined pursuant to 
subsection (a)(1)(A).
    ``(i) Disposition of Certain Funds.--
            ``(1) In general.--Of the amounts available for a fiscal 
        year for grants under section 1981, amounts described in 
        paragraph (2), if any, shall be allotted by the Secretary as 
        grants to States that submit applications in accordance with 
        section 1983 for the fiscal year. The amount of such a grant 
        for a State shall be determined in a manner equivalent to the 
        manner in which the amount of a grant was otherwise determined 
        under this section for the State for the fiscal year, and the 
        grant shall be subject to the same conditions as grants under 
        section 1981.
            ``(2) Specification of amounts.--The amounts referred to in 
        paragraph (1) for a fiscal year are any amounts that are not 
        paid under section 1981 to the States for the fiscal year as a 
        result of--
                    ``(A) the failure of one or more States to submit 
                an application in accordance with section 1983 for the 
                fiscal year; or
                    ``(B) one or more States informing the Secretary 
                that the State does not intend to expend the full 
                amount of the grant made to the State under section 
                1981 for the fiscal year.

``SEC. 1985. DEFINITIONS.

    ``For purposes of this part:
            ``(1) The term `State' has the meaning given such term in 
        section 1984(a)(2).
            ``(2) The term `territory' means each of the Commonwealth 
        of Puerto Rico, American Samoa, Guam, the Commonwealth of the 
        Northern Mariana Islands, the Virgin Islands, Palau, the 
        Marshall Islands, and Micronesia.

``SEC. 1986. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--For the purpose of carrying out this part, there 
are authorized to be appropriated $2,233,833,800 for fiscal year 1996, 
and $2,122,142,111 for fiscal year 1997 and each of the fiscal years 
1998 through 2000.
    ``(b) Allocation.--Of the amounts appropriated under subsection (a) 
for a fiscal year, the Secretary shall make available for grants under 
section 1981 to the territories an amount equal to the product of--
            ``(1) the amounts so appropriated; and
            ``(2) a percentage equal to the ratio of--
                    ``(A) the aggregate amounts received by the 
                territories for fiscal year 1995 under parts A and B 
                and under title V of the Social Security Act; and
                    ``(B) the aggregate amounts appropriated for fiscal 
                year 1995 under sections 1901, 1920, and 1935 and under 
                section 501 of the Social Security Act.''.
    (b) Conforming Amendments.--
            (1) Program for preventive health and health services.--
        Section 1901 of the Public Health Service Act (42 U.S.C. 300w) 
        is amended--
                    (A) in subsection (a), by striking ``through 1997'' 
                and inserting ``and 1995''; and
                    (B) by adding at the end the following subsection:
    ``(c) For fiscal year 1996 and subsequent fiscal years, this part 
is subject to part C.''.
            (2) Program for community health services.--Section 1920 of 
        the Public Health Service Act (42 U.S.C. 300x-9) is amended by 
        adding at the end the following subsection:
    ``(c) Limitation.--For fiscal year 1996 and subsequent fiscal 
years, this subpart is subject to part C.''.
            (3) Program for prevention and treatment of substance 
        abuse.--Section 1935 of the Public Health Service Act (42 
        U.S.C. 300x-35) is amended by adding at the end the following 
        subsection:
    ``(c) Limitation.--For fiscal year 1996 and subsequent fiscal 
years, this subpart is subject to part C.''.
            (4) Program for maternal and child health services.--
        Section 501 of the Social Security Act (42 U.S.C. 701) is 
        amended--
                    (A) in subsection (a), in the matter preceding 
                paragraph (1), by striking ``each fiscal year 
                thereafter'' and inserting ``each of the fiscal years 
                1991 through 1995''; and
                    (B) by adding at the end the following subsection:
    ``(c) For fiscal year 1996 and subsequent fiscal years, this part 
is subject to part C of title XIX of the Public Health Service Act 
(relating to the consolidation of certain programs).''.

SEC. 11302. REDUCTION IN BUDGET FOR IMMUNIZATION PROGRAMS; PROHIBITION 
              REGARDING WAREHOUSING OF VACCINES.

    Section 317(j) of the Public Health Service Act (42 U.S.C. 247b(j)) 
is amended--
            (1) in paragraph (1), in the first sentence--
                    (A) by striking ``and'' after ``1991,''; and
                    (B) by inserting before the period the following: 
                ``, $328,591,000 for fiscal year 1996, $324,591,000 for 
                fiscal year 1997, $319,591,000 for fiscal year 1998, 
                $315,591,000 for fiscal year 1999, and $310,591,000 for 
                fiscal year 2000'';
            (2) by striking paragraph (2); and
            (3) by adding at the end the following paragraph:
    ``(2) In carrying out programs of the Department of Health and 
Human Services under which the Secretary provides for the storage of 
vaccines, the Secretary may not provide for the storage of all (or 
substantially all) of the vaccines in a single storage facility.''.

                Subtitle E--Health Care Program Reforms

SEC. 11401. REDUCTION IN BUDGET OF AGENCY FOR HEALTH CARE POLICY AND 
              RESEARCH.

    Section 926 of the Public Health Service Act (42 U.S.C. 299c-5) is 
amended by adding at the end the following subsection:
    ``(f) Termination of Funding for Agency.--For fiscal year 1996 and 
each subsequent fiscal year, this Act does not provide any 
authorization of appropriations to carry out this title.''.

SEC. 11402. REDUCTION IN BUDGET FOR PROGRAMS TO TREAT SUBSTANCE ABUSE.

    Subpart 1 of part B of title V of the Public Health Service Act (42 
U.S.C. 290bb et seq.) is amended by adding at the end the following 
section:

                    ``reduction in treatment budget

    ``Sec. 514. (a) In General.--Notwithstanding any other provision of 
law, the authorizations of appropriations established for carrying out 
this subpart and section 1971 for a fiscal year are effective only to 
the extent that the authorizations for the fiscal year do not, in the 
aggregate, exceed the following amount, as applicable to the fiscal 
year: $178,405,000 for fiscal year 1996, $170,405,000 for fiscal year 
1997, $163,405,000 for fiscal year 1998, $155,405,000 for fiscal year 
1999, and $148,405,000 for fiscal year 2000.
    ``(b) Presumed Per-Program Authorization Level.--For each of the 
fiscal years specified in subsection (a), the authorization of 
appropriations for each program under this subpart and section 1971 is 
deemed to be an amount equal to the appropriation made for the program 
for the preceding fiscal year, unless a provision of this subpart or 
section 1971 specifies that this subsection is not applicable to the 
program.
    ``(c) Pro Rata Reductions in Authorizations.--If the aggregate of 
the authorizations of appropriations established for carrying out this 
subpart and section 1971 for a fiscal year (including authorizations 
established under subsection (b)) exceeds the amount applicable under 
subsection (a) to the fiscal year, each such authorization is reduced 
pro rata by the amount necessary for the aggregate of the 
authorizations to equal the applicable amount.''.

SEC. 11403. ABOLITION OF OFFICE OF THE SURGEON GENERAL OF THE PUBLIC 
              HEALTH SERVICE

    With respect to the Office of the Surgeon General of the Public 
Service--
            (1) all authorities and personnel of the Office are 
        transferred to the Assistant Secretary for Health of the 
        Department of Health and Human Services;
            (2) all unobligated portions of budget authority allocated 
        for the Office are rescinded; and
            (3) the Office, and the position of such Surgeon General, 
        are terminated.

            Subtitle F--Federal Employee Health Care Reform

SEC. 11501. GOVERNMENT CONTRIBUTION TO THE FEDERAL EMPLOYEES HEALTH 
              BENEFITS PROGRAM.

    (a) In General.--Section 8906 of title 5, United States Code, is 
amended by striking subsections (a) and (b) and inserting the 
following:
    ``(a) For the purpose of this section, `base quarter' and `price 
index' each has the meaning given it by section 8340.
    ``(b)(1)(A) Except as otherwise provided in this subsection, the 
biweekly Government contribution for health benefits for an employee or 
annuitant enrolled in a health benefits plan under this chapter shall 
be--
            ``(i) $1,535, if enrollment is for self alone, and
            ``(ii) $3,430, if enrollment is for self and family,
as adjusted under subparagraph (B).
    ``(B) The biweekly Government contribution under this paragraph for 
contract year 1997, or a subsequent contract year, is the applicable 
amount under subparagraph (A), increased by the percentage (if any) by 
which--
            ``(i) the price index for the base quarter of the preceding 
        contract year, exceeds
            ``(ii) the price index for the base quarter of contract 
        year 1994,
rounded to the nearest multiple of $5 (or, if midway between multiples 
of $5, to the next higher multiple of $5). For an employee, the 
adjustment begins on the first day of the employee's first pay period 
of the contract year. For an annuitant, the adjustment begins on the 
first day of the first period of the contract year for which an annuity 
payment is made.
    ``(2) The biweekly Government contribution for an employee or 
annuitant enrolled in a plan under this chapter shall not exceed the 
subscription charge.
    ``(3) In the case of an employee occupying a position on a part-
time career employment basis (as defined in section 3401(2)), the 
biweekly Government contribution shall be equal to the amount which 
bears the same ratio to the otherwise applicable amount under this 
subsection (determined without regard to this paragraph) as the average 
number of hours of such employee's regularly scheduled workweek bears 
to the average number of hours in the regularly scheduled workweek of 
an employee serving in a comparable position on a full-time career 
basis (as determined under regulations prescribed by the Office).''.
    (b) Conforming Amendment.--Subsection (c) of section 613 of the 
Alaska Railroad Transfer Act of 1982 (45 U.S.C. 1212(c)) is repealed.
    (c) Effective Date.--This section shall take effect at the 
beginning of contract year 1997.
                          TITLE XII--MEDICARE

                      Subtitle A--Copayment Reform

SEC. 12001. IMPOSITION OF 20 PERCENT COINSURANCE ON HOME HEALTH 
              SERVICES.

    (a) In General.--
            (1) Part a.--Section 1813(a) of the Social Security Act (42 
        U.S.C. 1395e(a)) is amended by adding at the end the following 
        new paragraph:
    ``(5) The amount payable for a home health service furnished to an 
individual under this part shall be reduced by a copayment amount equal 
to 20 percent of the average of all the per visit costs for such 
service furnished under this title determined under section 
1861(v)(1)(L) (as determined by the Secretary on a prospective basis 
for services furnished during a calendar year).''.
            (2) Part b.--Section 1833(a)(2) of such Act (42 U.S.C. 
        1395l(a)(2)), as amended by section 147(f)(6)(C) of the Social 
        Security Act Amendments of 1994, is amended--
                    (A) in subparagraph (A)--
                            (i) by striking ``to home health services'' 
                        and all that follows through ``1861(kk))),'', 
                        and
                            (ii) by striking the comma after 
                        ``opinion)'';
                    (B) in subparagraph (E), by striking ``and'' at the 
                end;
                    (C) in subparagraph (F), by striking the semicolon 
                at the end and inserting ``; and''; and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(G) with respect to any home health service other 
                than a covered osteoporosis drug (as defined in section 
                1861(kk))--
                            ``(i) the lesser of --
                                    ``(I) the reasonable cost of such 
                                service, as determined under section 
                                1861(v), or
                                    ``(II) the customary charges with 
                                respect to such service,
                        less the amount a provider may charge as 
                        described in clause (ii) of section 
                        1866(a)(2)(A), or
                            ``(ii) if such service is furnished by a 
                        public provider of services, or by another 
                        provider which demonstrates to the satisfaction 
                        of the Secretary that a significant portion of 
                        its patients are low-income (and requests that 
                        payment be made under this clause), free of 
                        charge or at nominal charges to the public, the 
                        amount determined in accordance with section 
                        1814(b)(2),
                less a copayment amount equal to 20 percent of the 
                average of all per visit costs for such service 
                furnished under this title determined under section 
                1861(v)(1)(L) (as determined by the Secretary on a 
                prospective basis for services furnished during a 
                calendar year);''.
            (3) Provider charges.--Section 1866(a)(2)(A)(i) of such Act 
        (42 U.S.C. 1395cc(a)(2)(A)(i)) is amended--
                    (A) by striking ``deduction or coinsurance'' and 
                inserting ``deduction, coinsurance, or copayment''; and
                    (B) by striking ``or (a)(4)'' and inserting 
                ``(a)(4), or (a)(5)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to home health services furnished on or after October 1, 1995.

SEC. 12002. IMPOSITION OF 20 PERCENT COINSURANCE ON CLINICAL LABORATORY 
              SERVICES.

    (a) In General.--Section 1833(a) of the Social Security Act (42 
U.S.C. 1395l(a)), as amended by section 156(a)(2)(B) of the Social 
Security Act Amendments of 1994, is amended--
            (1) in paragraph (1)(D)--
                    (A) by striking ``(or 100 percent'' and all that 
                follows through ``basis)'', and
                    (B) by striking ``100 percent of such negotiated 
                rate'' and inserting ``80 percent of such negotiated 
                rate''; and
            (2) in paragraph (2)(D)--
                    (A) by striking ``(or 100 percent'' and all that 
                follows through ``section 1866)'', and
                    (B) by striking ``100 percent of such negotiated 
                rate'' and inserting ``80 percent of such negotiated 
                rate''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to tests furnished on or after October 1, 1995.

                       Subtitle B--Part B Premium

SEC. 12101. RELATING MEDICARE PART B PREMIUM TO INCOME FOR CERTAIN HIGH 
              INCOME INDIVIDUALS.

    (a) Increase in Premium.--
            (1) In general.--Section 1839 of the Social Security Act 
        (42 U.S.C. 1395r), as amended by section 144 of the Social 
        Security Act Amendments of
         1994, is amended by adding at the end the following:
    ``(h)(1) Notwithstanding the previous subsections of this section, 
in the case of an individual whose modified adjusted gross income in a 
taxable year ending with or within a calendar year (as reported by the 
individual under section 1893(a)) is equal to or exceeds the sum of the 
threshold amount described in paragraph (4) and $25,000, the amount of 
the monthly premium for the calendar year shall be increased by an 
amount such that the total monthly premium (determined without regard 
to subsection (b)) is equal to 200 percent of the monthly actuarial 
rate for enrollees age 65 and over as determined under subsection 
(a)(1) for that calendar year. The preceding sentence shall not apply 
to any individual whose threshold amount is zero.
    ``(2) Notwithstanding the previous subsections of this section, in 
the case of an individual not described in paragraph (1) whose modified 
adjusted gross income in a taxable year ending with or within a 
calendar year (as reported by the individual under section 1893(a)) 
exceeds the threshold amount described in paragraph (4), the amount of 
the monthly premium for the calendar year shall be increased by an 
amount which bears the same ratio to the amount of the increase 
determined under paragraph (1) as such excess bears to $25,000. The 
preceding sentence shall not apply to any individual whose threshold 
amount is zero.
    ``(3) Using information provided by the Secretary of the Treasury 
under section 6103(l)(14) of the Internal Revenue Code of 1986, the 
Secretary shall determine the actual modified adjusted gross income of 
individuals enrolled in this part during a taxable year and adjust the 
monthly premium applicable to an individual during a calendar year to 
take into account any overpayments or underpayments in the premium 
during the previous calendar year resulting from the application of 
this subsection.
    ``(4) In this subsection and section 1813(c), the term `threshold 
amount' means--
            ``(A) except as otherwise provided in this paragraph, 
        $70,000,
            ``(B) $90,000 in the case of an individual who files a 
        joint return under section 6013 of the Internal Revenue Code of 
        1986, and
            ``(C) zero in the case of an individual who--
                    ``(i) is married at the close of the taxable year 
                (as determined under section 7703 of the Internal 
                Revenue Code of 1986) but does not file a joint return 
                for such year, and
                    ``(ii) does not live apart from the individual's 
                spouse at all times during the taxable year.''.
            (2) Conforming amendment.--Section 1839(f) of such Act (42 
        U.S.C. 1395r(f)) is amended by striking ``if an individual'' 
        and inserting the following: ``if an individual (other than an 
        individual subject to an increase in the monthly premium under 
        this section pursuant to subsection (h))''.
            (3) Effective date.--The amendments made by paragraphs (1) 
        and (2) shall apply to the monthly premium under section 1839 
        of the Social Security Act for months beginning after February 
        1996 in taxable years beginning after December 31, 1995.
    (b) Reporting Requirement for Beneficiaries.--Title XVIII of the 
Social Security Act is amended by adding at the end the following:

   ``report to secretary on estimated modified adjusted gross income

    ``Sec. 1893. (a) In General.--
            ``(1) Individuals covered throughout year.--Not later than 
        November 1 of each year (beginning with 1996), each individual 
        enrolled under part B shall submit to the Secretary (in such 
        form and manner as the Secretary may require, in consultation 
        with the Secretary of the Treasury) an estimate of the 
        individual's modified adjusted gross income anticipated for the 
        taxable year ending with or within the following calendar year, 
        to be used (subject to section 1839(h)(3)) to determine
         whether the individual is to be subject to an increase in the 
monthly part B premium under section 1839(h) for such following 
calendar year.
            ``(2) Special rule for first year of coverage.--For the 
        first year in which an individual is enrolled under part B, the 
        individual shall submit to the Secretary (at such time and in 
        such form and manner as the Secretary may require, in 
        consultation with the Secretary of the Treasury) an estimate of 
        the individual's modified adjusted gross income anticipated for 
        the taxable year ending with December 31 of such year, to be 
        used to determine whether the individual is to be subject to an 
        increase in the monthly part B premium under section 1839(h) 
        for such year.
    ``(b) Special Rule for 1996.--Not later than 60 days after the date 
of the enactment of this section, each individual described in 
subsection (a) shall submit to the Secretary an estimate of the 
individual's modified adjusted gross income for the taxable year ending 
December 1995, to be used to determine (subject to section 1839(h)(3)) 
whether the individual is to be subject to an increase in the monthly 
part B premium under section 1839(h) during 1996.
    ``(c) Modified Adjusted Gross Income Defined.--In subsection (a), 
the term `modified adjusted gross income' means, with respect to an 
individual for a taxable year, the individual's adjusted gross income 
under the Internal Revenue Code of 1986, determined without regard to 
sections 931 or 933 of such Code.''.
    (c) Disclosure of Certain Tax Information by Secretary of 
Treasury.--
            (1) In general.--Subsection (l) of section 6103 of the 
        Internal Revenue Code of 1986 (relating to confidentiality and 
        disclosure of returns and return information) is amended by 
        adding at the end thereof the following new paragraph:
            ``(14) Disclosure of return information to means-test 
        medicare.--
                    ``(A) In general.--The Secretary shall, upon 
                written request from the Administrator of the Health 
                Care Financing Administration, disclose to the officers 
                and employees of such Administration return information 
                necessary to determine the modified adjusted gross 
                income (as defined in section 1893(c) of the Social 
                Security Act) of any medicare beneficiary (as defined 
                in paragraph (12)(E)), to be used to determine whether 
                the beneficiary is to be subject to an increase in the 
                monthly part B premium under section 1839(g) of such 
                Act.
                    ``(B) Restriction on use of disclosed 
                information.--Any officer or employee of the Health 
                Care Financing Administration receiving return 
                information under subparagraph (A) shall use such 
                information only for purposes of, and to the extent 
                necessary in, establishing the modified adjusted gross 
                income (as so defined) of any medicare beneficiary (as 
                so defined).''
            (2) Conforming amendments.--Paragraphs (3)(A) and (4) of 
        section 6103(p) of such Code are each amended by striking ``or 
        (13)'' each place it appears and inserting ``(13), or (14)''.
            (3) Effective date.--The amendments made by paragraphs (1) 
        and (2) shall apply with respect to information for taxable 
        years beginning after December 31, 1995.

SEC. 12103. SETTING THE PART B PREMIUM AT 25 PERCENT OF PROGRAM 
              EXPENDITURES PERMANENTLY.

    (a) In General.--Section 1839(a)(3) of the Social Security Act (42 
U.S.C. 1395r(a)(3)) is amended by striking ``The monthly premium'' and 
all that follows through ``November 1.'' and inserting the following: 
``The monthly premium shall be equal to 50 percent of the monthly 
actuarial rate for enrollees age 65 and over, as determined according 
to paragraph (1), for that succeeding calendar year.''.
    (b) Conforming Amendments.--Section 1839 of such Act (42 U.S.C. 
1395r) is amended--
            (1) in subsection (a)(2), by striking ``(b) and (e)'' and 
        inserting ``(b), (c), (e), and (f)'';
            (2) in the last sentence of subsection (a)(3), by striking 
        ``and the derivation of the dollar amounts specified in this 
        paragraph''; and
            (3) in subsection (e)--
                    (A) by striking ``(1)(A) Notwithstanding'' and all 
                that follows through ``(B)'',
                    (B) by striking paragraph (2), and
                    (C) by redesignating clauses (i) through (v) as 
                paragraphs (1) through (5).

                     Subtitle C--Part A Deductible

SEC. 12201. INCREASE IN MEDICARE HOSPITAL INSURANCE DEDUCTIBLE FOR 
              CERTAIN HIGH-INCOME INDIVIDUALS.

    (a) Increase in Deductible.--
            (1) In general.--Section 1813 of the Social Security Act 
        (42 U.S.C. 1395e) is amended by adding at the end the following 
        new subsection:
    ``(c)(1)(A) Notwithstanding the previous subsections of this 
section, in the case of an individual whose modified adjusted gross 
income in a taxable year ending with or within a calendar year (as 
reported by the individual under section 1893(a)) exceeds the threshold 
amount (described in section 1839(h)(4)), the inpatient hospital 
deductible otherwise applicable with respect to an individual for a 
spell of illness that begins during such year shall be increased--
            ``(i) in the case of an individual whose modified adjusted 
        gross income exceeds such threshold amount by less than $5,000, 
        by 33 percent of such deductible; or
            ``(ii) in the case of any other such individual, by 33 
        percent of such deductible for each $5,000 by which the 
        individual's modified adjusted gross income exceeds such 
        threshold amount.
    ``(B) Notwithstanding subparagraph (A), the total inpatient 
hospital deductible applicable to an individual for a spell of illness 
may not exceed--
            ``(i) for 1996, $2,000; and
            ``(ii) for any succeeding year, the amount described in 
        this subparagraph for the preceding calendar year, changed and 
        adjusted in the same manner as the inpatient hospital 
        deductible is changed and adjusted under subsection (b)(1).
    ``(2) Using information provided by the Secretary of the Treasury 
under 6103(l)(14), the Secretary shall determine the actual modified 
adjusted gross income of individuals enrolled in this part during a 
taxable year and apply the following rules:
            ``(A) In the case of an individual subject to an increase 
        in the inpatient hospital deductible under paragraph (1) during 
        a year whose modified adjusted gross income did not exceed the 
        threshold amount (described in section 1839(h)(4)) for such 
        year, the Secretary shall refund to the individual the amount 
        of such increase.
            ``(B) In the case of an individual to which the inpatient 
        hospital deductible applied for inpatient hospital services 
        furnished in a year and whose actual modified adjusted gross 
        income exceeded the threshold amount (described in section 
        1839(h)(4)) for such year, if such individual was not subject 
        to an increase in such deductible during the year under 
        paragraph (1)--
                    ``(i) the Secretary shall collect the amount by 
                which the deductible would have been increased if the 
                modified adjusted gross income reported by the 
                individual under section 1893(a) was equal to the 
                individual's actual modified adjusted gross income from 
                the hospital that furnished the inpatient hospital 
                services (either directly or through reductions in 
                payments to the hospital for subsequently furnished 
                services); and
                    ``(ii) the individual shall be liable to the 
                hospital for payment of such amount.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to inpatient hospital services for which a spell of 
        illness (as defined in section 1861(a) of the Social Security 
        Act) begins after February 1996 in taxable years beginning 
        after December 31, 1995.
    (b) Conforming Amendment to Reporting Requirement for 
Beneficiaries.--Section 1893 of such Act, as added by section 12101(b), 
is amended--
            (1) in subsection (a), by striking ``part B'' each place it 
        appears in paragraphs (1) and (2) and inserting ``part B or 
        entitled to benefits under part A''; and
            (2) by striking ``1839(h)'' each place it appears in 
        subsections (a) and (b) and inserting the following: `` 1839(h) 
        or an increase in the inpatient hospital deductible under 
        section 1813(c)''.
    (c) Conforming Amendment to Disclosure Requirement for Secretary of 
the Treasury.--Section 6103(l)(14)(A) of the Internal Revenue Code of 
1986, as added by section 12101(c), is amended by striking ``1839(h)'' 
and inserting the following: `` 1839(h) or an increase in the inpatient 
hospital deductible under section 1813(c)''.

               Subtitle D--Medicare Payments to Hospitals

SEC. 12301. ELIMINATION OF PAYMENTS TO HOSPITALS FOR ENROLLEES' BAD 
              DEBTS.

    (a) In General.--Section 1861(v)(1) of the Social Security Act (8 
U.S.C. 1395x(v)(1)) is amended by adding at the end the following new 
subparagraph:
    ``(T) In determining such reasonable costs for hospitals, bad debts 
attributable to the deductibles and coinsurance amounts under this 
title shall not be treated as allowable costs.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to hospital cost reporting periods beginning on or after October 
1, 1995.

SEC. 12302. REDUCTION IN PAYMENTS FOR INDIRECT COSTS OF MEDICAL 
              EDUCATION.

    (a) In General.--Section 1886(d)(5)(B)(ii) of the Social Security 
Act (42 U.S.C. 1395ww(d)(5)(B)(ii)) is amended by striking ``1.89'' and 
inserting ``.74''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to hospital cost reporting periods beginning on or after October 
1, 1995.

           Subtitle E--Selected Presidential Medicare Reforms

SEC. 12401. EXPANSION OF CENTERS OF EXCELLENCE.

    (a) In General.--The Secretary of Health and Human Services shall 
use a competitive process to contract with centers of excellence for 
cataract surgery, coronary artery by-pass surgery, and such other 
services as the Secretary determines to be appropriate. Payment under 
title XVIII of the Social Security Act will be made for services 
subject to such contracts on the basis of negotiated or all-inclusive 
rates as follows:
            (1) The center shall cover services provided in an urban 
        area (as defined in section 1886(d)(2)(D) of the Social 
        Security Act) for years beginning with fiscal year 1995.
            (2) The amount of payment made by the Secretary to the 
        center under title XVIII of the Social Security Act for 
        services covered under the project shall be less than the 
        aggregate amount of the payments that the Secretary would have 
        made to the center for such services had the project not been 
        in effect.
            (3) The Secretary shall make payments to the center on such 
        a basis for the following services furnished to individuals 
        entitled to benefits under such title:
                    (A) Facility, professional, and related services 
                relating to cataract surgery.
                    (B) Coronary artery bypass surgery and related 
                services.
                    (C) Such other services as the Secretary and the 
                center may agree to cover under the agreement.
    (b) Rebate of Portion of Savings.--In the case of any services 
provided under a demonstration project conducted under subsection (a), 
the Secretary shall make a payment to each individual to whom such 
services are furnished (at such time and in such manner as the 
Secretary may provide) in an amount equal to 10 percent of the amount 
by which--
            (1) the amount of payment that would have been made by the 
        Secretary under title XVIII of the Social Security Act to the 
        center for such services if the services had not been provided 
        under the project, exceeds
            (2) the amount of payment made by the Secretary under such 
        title to the center for such services.

SEC. 12402. APPLICATION OF COMPETITIVE ACQUISITION PROCESS FOR PART B 
              ITEMS AND SERVICES.

    (a) General Rule.--Part B of title XVIII of the Social Security Act 
is amended by inserting after section 1846 the following:

            ``competition acquisition for items and services

    ``Sec. 1847. (a) Establishment of Bidding Areas.--
            ``(1) In general.--The Secretary shall establish 
        competitive acquisition areas for the purpose of awarding a 
        contract or contracts for the furnishing under this part of the 
        items and services described in subsection (c) on or after 
        January 1, 1995. The Secretary may establish different 
        competitive acquisition areas under this subsection for 
        different classes of items and services under this part.
            ``(2) Criteria for establishment.--The competitive 
        acquisition areas established under paragraph (1) shall--
                    ``(A) initially be, or be within, metropolitan 
                statistical areas; and
                    ``(B) be chosen based on the availability and 
                accessibility of suppliers and the probable savings to 
                be realized by the use of competitive bidding in the 
                furnishing of items and services in the area.
    ``(b) Awarding of Contracts in Areas.--
            ``(1) In general.--The Secretary shall conduct a 
        competition among individuals and entities supplying items and 
        services under this part for each competitive acquisition area 
        established under subsection (a) for each class of items and 
        services.
            ``(2) Conditions for awarding contract.--The Secretary may 
        not award a contract to any individual or entity under the 
        competition conducted pursuant to paragraph (1) to furnish an 
        item or service under this part unless the Secretary finds that 
        the individual or entity--
                    ``(A) meets quality standards specified by the 
                Secretary for the furnishing of such item or service; 
                and
                    ``(B) offers to furnish a total quantity of such 
                item or service that is sufficient to meet the expected 
                need within the competitive acquisition area.
            ``(3) Contents of contract.--A contract entered into with 
        an individual or entity under the competition conducted 
        pursuant to paragraph (1) shall specify (for all of the items 
        and services within a class)--
                    ``(A) the quantity of items and services the entity 
                shall provide; and
                    ``(B) such other terms and conditions as the 
                Secretary may require.
    ``(c) Services Described.--The items and services to which the 
provisions of this section shall apply are as follows:
            ``(1) Magnetic resonance imaging tests and computerized 
        axial tomography scans, including a physician's interpretation 
        of the results of such tests and scans.
            ``(2) Oxygen and oxygen equipment.
            ``(3) Such other items and services for which the Secretary 
        determines that the use of competitive acquisition under this 
        section will be appropriate and cost-effective.''.
    (b) Items and Services To Be Furnished Only Through Competitive 
Acquisition.--Section 1862(a) of such Act (42 U.S.C. 1395y(a)), as 
amended by section 156(a)(2)(D) of the Social Security Act Amendments 
of 1994, is amended--
            (1) by striking ``or'' at the end of paragraph (14);
            (2) by striking the period at the end of paragraph (15) and 
        inserting ``; or''; and
            (3) by inserting after paragraph (15) the following new 
        paragraph:
            ``(16) where such expenses are for an item or service 
        furnished in a competitive acquisition area (as established by 
        the Secretary under section 1847(a)) by an individual or entity 
        other than the supplier with whom the Secretary has entered 
        into a contract under section 1847(b) for the furnishing of 
        such item or service in that area, unless the Secretary finds 
        that such expenses were incurred in a case of urgent need.''.
    (c) Reduction in Payment Amounts if Competitive Acquisition Fails 
to Achieve Minimum Reduction in Payments.--Notwithstanding any other 
provision of title XVIII of the Social Security Act, if the 
establishment of competitive acquisition areas under section 1847 of 
such Act (as added by subsection (a)) and the limitation of coverage 
for items and services under part B of such title to items and services 
furnished by providers with competitive acquisition contracts under 
such section does not result in a reduction of at least 10 percent in 
the projected payment amount that would have applied to the item or 
service under part B if the item or service had not been furnished 
through competitive acquisition under such section, the Secretary shall 
reduce the payment amount by such percentage as the Secretary 
determines necessary to result in such a reduction.
    (d) Effective Date.--The amendments made by this section shall 
apply to items and services furnished under part B of title XVIII of 
the Social Security Act on or after January 1, 1995.

SEC. 12403. APPLICATION OF COMPETITIVE ACQUISITION PROCEDURES FOR 
              LABORATORY SERVICES.

    (a) In General.--Section 1847(c) of the Social Security Act, as 
added by section 12402, is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Clinical diagnostic laboratory tests.''.
    (b) Reduction in Fee Schedule Amounts if Competitive Acquisition 
Fails to Achieve Savings.--Section 1833(h) (42 U.S.C. 1395l(h)) is 
amended by adding at the end the following new paragraph:
    ``(7) Notwithstanding any other provision of this subsection, if 
the Secretary applies the authority provided under section 1847 to 
establish competitive acquisition areas for the furnishing of clinical 
diagnostic laboratory tests in a year and the application of such 
authority does not result in a reduction of at least 10 percent in the 
projected payment amount that would have applied to such tests under 
this section if the tests had not been furnished through competitive 
acquisition under section 1847, the Secretary shall reduce each payment 
amount otherwise determined under the fee schedules and negotiated 
rates established under this subsection by such percentage as the 
Secretary determines necessary to result in such a reduction.''.

SEC. 12404. MEDICARE SECONDARY PAYER CHANGES.

    (a) Extension of Data Match.--
            (1) Section 1862(b)(5)(C) (42 U.S.C. 1395y(b)(5)(C)) is 
        amended by striking clause (iii).
            (2) Section 6103(l)(12) of the Internal Revenue Code of 
        1986 is amended by striking subparagraph (F).
    (b) Repeal of Sunset on Application to Disabled Employees of 
Employers with More than 100 Employees.--Section 1862(b)(1)(B)(iii) (42 
U.S.C. 1395y(b)(1)(B)(iii)), as amended by section 13561(b) of OBRA-
1993, is amended--
            (1) in the heading, by striking ``Sunset'' and inserting 
        ``Effective date''; and
            (2) by striking ``, and before October 1, 1998''.
    (c) Extension of Period for End Stage Renal Disease 
Beneficiaries.--Section 1862(b)(1)(C) (42 U.S.C. 1395y(b)(1)(C)), as 
amended by section 13561(c) of OBRA-1993, is amended in the second 
sentence by striking ``and on or before October 1, 1998,''.

SEC. 12405. LIMITATIONS ON PAYMENT FOR PHYSICIANS' SERVICES FURNISHED 
              BY HIGH-COST HOSPITAL MEDICAL STAFFS.

    (a) In General.--
            (1) Limitations described.--Part B of title XVIII of the 
        Social Security Act is amended by adding at the end the 
        following new section:
  ``limitations on payment for physicians' services furnished by high-
                      cost hospital medical staffs

    ``Sec. 1849. (a) Services Subject to Reduction.--
            ``(1) Determination of hospital-specific per admission 
        relative value.--Not later than October 1 of each year 
        (beginning with 1997), the Secretary shall determine for each 
        hospital--
                    ``(A) the hospital-specific per admission relative 
                value under subsection (b)(2) for the following year; 
                and
                    ``(B) whether such hospital-specific relative value 
                is projected to exceed the allowable average per 
                admission relative value applicable to the hospital for 
                the following year under subsection (b)(1).
            ``(2) Reduction for services at hospitals exceeding 
        allowable average per admission relative value.--If the 
        Secretary determines (under paragraph (1)) that a medical 
        staff's hospital-specific per admission relative value for a 
        year (beginning with 1998) is projected to exceed the allowable 
        average per admission relative value applicable to the medical 
        staff for the year, the Secretary shall reduce (in accordance 
        with subsection (c)) the amount of payment otherwise determined 
        under this part for each physician's service furnished during 
        the year to an inpatient of the hospital by an individual who 
        is a member of the hospital's medical staff.
            ``(3) Timing of determination; notice to hospitals and 
        carriers.--Not later than October 1 of each year (beginning 
        with 1997), the Secretary shall notify the medical executive 
        committee of each hospital (as set forth in the Standards of 
        the Joint Commission on the Accreditation of Health 
        Organizations) of the determinations made with respect to the 
        medical staff under paragraph (1).
    ``(b) Determination of Allowable Average Per Admission Relative 
Value and Hospital-Specific Per Admission Relative Values.--
            ``(1) Allowable average per admission relative value.--
                    ``(A) Urban hospitals.--In the case of a hospital 
                located in an urban area, the allowable average per 
                admission relative value established under this 
                subsection for a year is equal to 125 percent (or 120 
                percent for years after 1999) of the median of 1996 
                hospital-specific per admission relative values 
                determined under paragraph (2) for all hospital medical 
                staffs.
                    ``(B) Rural hospitals.--In the case of a hospital 
                located in a rural area, the allowable average per 
                admission relative value established under this 
                subsection for 1998 and each succeeding year, is equal 
                to 140 percent of the median of the 1996 hospital-
                specific per admission relative values determined under 
                paragraph (2) for all hospital medical staffs.
            ``(2) Hospital-specific per admission relative value.--
                    ``(A) In general.--The hospital-specific per 
                admission relative value projected for a hospital 
                (other than a teaching hospital) for a calendar year, 
                shall be equal to the average per admission relative 
                value (as determined under section 1848(c)(2)) for 
                physicians' services furnished to inpatients of the 
                hospital by the hospital's medical staff (excluding 
                interns and residents) during the second year preceding 
                such calendar year, adjusted for variations in case-mix 
                and disproportionate share status among hospitals (as 
                determined by the Secretary under subparagraph (C)).
                    ``(B) Special rule for teaching hospitals.--The 
                hospital-specific relative value projected for a 
                teaching hospital in a calendar year shall be equal to 
                the sum of--
                            ``(i) the average per admission relative 
                        value (as determined under section 1848(c)(2)) 
                        for physicians' services furnished to 
                        inpatients of the hospital by the hospital's 
                        medical staff (excluding interns and residents) 
                        during the second year preceding such calendar 
                        year; and
                            ``(ii) the equivalent per admission 
                        relative value (as determined under section 
                        1848(c)(2)) for physicians' services furnished 
                        to inpatients of the hospital by interns and 
                        residents of the hospital during the second 
                        year preceding such calendar year, adjusted for 
                        variations in case-mix, disproportionate share 
                        status, and teaching status among hospitals (as 
                        determined by the Secretary under subparagraph 
                        (C)). The Secretary shall determine such 
                        equivalent relative value unit per admission 
                        for interns and residents based on the best 
                        available data for teaching hospitals and may 
                        make such adjustment in the aggregate.
                    ``(C) Adjustment for teaching and disproportionate 
                share hospitals.--The Secretary shall adjust the 
                allowable per admission relative values otherwise 
                determined under this paragraph to take into account 
                the needs of teaching hospitals and hospitals receiving 
                additional payments under subparagraphs (F) and (G) of 
                section 1886(d)(5). The adjustment for teaching status 
                or disproportionate share shall not be less than zero.
    ``(c) Amount of Reduction.--The amount of payment otherwise made 
under this part for a physician's service that is subject to a 
reduction under subsection (a) during a year shall be reduced 15 
percent, in the case of a service furnished by a member of the medical 
staff of the hospital for which the Secretary determines under 
subsection (a)(1) that the hospital medical staff's projected relative 
value per admission exceeds the allowable average per admission 
relative value.
    ``(d) Reconciliation of Reductions Based on Hospital-Specific 
Relative Value Per Admission With Actual Relative Values.--
            ``(1) Determination of actual average per admission 
        relative value.--Not later than October 1 of each year 
        (beginning with 1999), the Secretary shall determine the actual 
        average per admission relative value (as determined pursuant to 
        section 1848(c)(2)) for the physicians' services furnished by 
        members of a hospital's medical staff to inpatients of the 
        hospital during the previous year, on the basis of claims for 
        payment for such services that are submitted to the Secretary 
        not later than 90 days after the last day of such previous 
        year. The actual average per admission shall be adjusted by the 
        appropriate case-mix, disproportionate share factor, and 
        teaching factor for the hospital medical staff (as determined 
        by the Secretary under subsection (b)(2)(C)). Notwithstanding 
        any other provision of this title, no payment may be made under 
        this part for any physician's service furnished by a member of 
        a hospital's medical staff to an inpatient of the hospital 
        during a year unless the hospital submits a claim to the 
        Secretary for payment for such service not later than 90 days 
        after the last day of the year.
            ``(2) Reconciliation with reductions taken.--In the case of 
        a hospital for which the payment amounts for physicians' 
        services furnished by members of the hospital's medical staff 
        to inpatients of the hospital were reduced under this section 
        for a year--
                    ``(A) if the actual average per admission relative 
                value for such hospital's medical staff during the year 
                (as determined by the Secretary under paragraph (1)) 
                did not exceed the allowable average per admission 
                relative value applicable to the hospital's medical 
                staff under subsection (b)(1) for the year, the 
                Secretary shall reimburse the fiduciary agent for the 
                medical staff by the amount by which payments for such 
                services were reduced for the year under subsection 
                (c), including interest at an appropriate rate 
                determined by the Secretary;
                    ``(B) if the actual average per admission relative 
                value for such hospital's medical staff during the year 
                is less than 15 percentage points above the allowable 
                average per admission relative value applicable to the 
                hospital's medical staff under subsection (b)(1) for 
                the year, the Secretary shall reimburse the fiduciary 
                agent for the medical staff, as a percent of the total 
                allowed charges for physicians' services performed in 
                such hospital (prior to the withhold), the difference 
                between 15 percentage points and the actual number of 
                percentage points that the staff exceeds the limit 
                allowable average per admission relative value, 
                including interest at an appropriate rate determined by 
                the Secretary; and
                    ``(C) if the actual average per admission relative 
                value for such hospital's medical staff during the year 
                exceeded the allowable average per admission relative 
                value applicable to the hospital's medical staff by 15 
                percentage points or more, none of the withhold is paid 
                to the fiduciary agent for the medical staff.
            ``(3) Medical executive committee of a hospital.--Each 
        medical executive committee of a hospital whose medical staff 
        is projected to exceed the allowable relative value per 
        admission for a year, shall have one year from the date of 
        notification that such medical staff is projected to exceed the 
        allowable relative value per admission to designate a fiduciary 
        agent for the medical staff to receive and disburse any 
        appropriate withhold amount made by the carrier.
            ``(4) Alternative reimbursement to members of staff.--At 
        the request of a fiduciary agent for the medical staff, if the 
        fiduciary agent for the medical staff is owed the reimbursement 
        described in paragraph (2)(B) for excess reductions in payments 
        during a year, the Secretary shall make such reimbursement to 
        the members of the hospital's medical staff, on a pro-rata 
        basis according to the proportion of physicians' services 
        furnished to inpatients of the hospital during the year that 
        were furnished by each member of the medical staff.
    ``(e) Definitions.--In this section, the following definitions 
apply:
            ``(1) Medical staff.--An individual furnishing a 
        physician's service is considered to be on the medical staff of 
        a hospital--
                    ``(A) if (in accordance with requirements for 
                hospitals established by the Joint Commission on 
                Accreditation of Health Organizations)--
                            ``(i) the individual is subject to bylaws, 
                        rules, and regulations established by the 
                        hospital to provide a framework for the self-
                        governance of medical staff activities;
                            ``(ii) subject to such bylaws, rules, and 
                        regulations, the individual has clinical 
                        privileges granted by the hospital's governing 
                        body; and
                            ``(iii) under such clinical privileges, the 
                        individual may provide physicians' services 
                        independently within the scope of the 
                        individual's clinical privileges, or
                    ``(B) if such physician provides at least one 
                service to a medicare beneficiary in such hospital.
            ``(2) Rural area; urban area.--The terms `rural area' and 
        `urban area' have the meaning given such terms under section 
        1886(d)(2)(D).
            ``(3) Teaching hospital.--The term `teaching hospital' 
        means a hospital which has a teaching program approved as 
        specified in section 1861(b)(6).''.
            (2) Conforming amendments.--(A) Section 1833(a)(1)(N) of 
        such Act (42 U.S.C. 1395l(a)(1)(N)) is amended by inserting 
        ``(subject to reduction under section 1849)'' after 
        ``1848(a)(1)''.
            (B) Section 1848(a)(1)(B) of such Act (42 U.S.C. 
        1395w@4(a)(1)(B)) is amended by striking ``this subsection,'' 
        and inserting ``this subsection and section 1849,''.
    (b) Requiring Physicians to Identify Hospital at Which Service 
Furnished.--Section 1848(g)(4)(A)(i) of such Act (42 U.S.C. 
1395w@4(g)(4)(A)(i)) is amended by striking ``beneficiary,'' and 
inserting ``beneficiary (and, in the case of a service furnished to an 
inpatient of a hospital, report the hospital identification number on 
such claim form),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to services furnished on or after January 1, 1998.

SEC. 12406. REDUCTION IN UPDATE FOR INPATIENT HOSPITAL SERVICES.

    Section 1886(b)(3)(B)(i) of the Social Security Act (42 U.S.C. 
1395ww(b)(3)(B)(i)) is amended--
            (1) in subclause (XII)--
                    (A) by striking ``fiscal year 1997'' and inserting 
                ``for each of the fiscal years 1997 through 2000'', and
                    (B) by striking ``0.5 percentage point'' and 
                inserting ``2.0 percentage points''; and
            (2) in subclause (XIII), by striking ``fiscal year 1998'' 
        and inserting ``fiscal year 2003''.

SEC. 12407. ESTABLISHMENT OF CUMULATIVE EXPENDITURE GOALS FOR PHYSICIAN 
              SERVICES.

    (a) Use of Cumulative Performance Standard.--Section 1848(f)(2) of 
the Social Security Act (42 U.S.C. 1395w@4(f)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in the heading, by striking ``In general'' and 
                inserting ``Fiscal years 1991 through 1994.--'',
                    (B) in the matter preceding clause (i), by striking 
                ``a fiscal year (beginning with fiscal year 1991)'' and 
                inserting ``fiscal years 1991, 1992, 1993, and 1994'', 
                and
                    (C) in the matter following clause (iv), by 
                striking ``subparagraph (B)'' and inserting 
                ``subparagraph (C)'';
            (2) in subparagraph (B), by striking ``subparagraph (A)'' 
        and inserting ``subparagraphs (A) and (B)'';
            (3) by redesignating subparagraphs (B) and (C) as 
        subparagraphs (C) and (D); and
            (4) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Fiscal years beginning with fiscal year 
                1995.--Unless Congress otherwise provides, the 
                performance standard rate of increase, for all 
                physicians' services and for each category of 
                physicians' services, for a fiscal year beginning with 
                fiscal year 1995 shall be equal to the performance 
                standard rate of increase determined under this 
                paragraph for the previous fiscal year, increased by 
                the product of--
                            ``(i) 1 plus the Secretary's estimate of 
                        the weighted average percentage increase 
                        (divided by 100) in the fees for all 
                        physicians' services or for the category of 
                        physicians' services, respectively, under this 
                        part for portions of calendar years included in 
                        the fiscal year involved,
                            ``(ii) 1 plus the Secretary's estimate of 
                        the percentage increase or decrease (divided by 
                        100) in the average number of individuals 
                        enrolled under this part (other than HMO 
                        enrollees) from the previous fiscal year to the 
                        fiscal year involved,
                            ``(iii) 1 plus the Secretary's estimate of 
                        the average annual percentage growth (divided 
                        by 100) in volume and intensity of all 
                        physicians' services or of the category of 
                        physicians' services, respectively, under this 
                        part for the 5-fiscal-year period ending with 
                        the preceding fiscal year (based upon 
                        information contained in the most recent annual 
                        report made pursuant to section 1841(b)(2)), 
                        and
                            ``(iv) 1 plus the Secretary's estimate of 
                        the percentage increase or decrease (divided by 
                        100) in expenditures for all physicians' 
                        services or of the category of physicians' 
                        services, respectively, in the fiscal year 
                        (compared with the previous fiscal year) which 
                        are estimated to result from changes in law or 
                        regulations affecting the percentage increase 
                        described in clause (i) and which is not taken 
                        into account in the percentage increase 
                        described in clause (i),
                minus 1, multiplied by 100, and reduced by the 
                performance standard factor (specified in subparagraph 
                (C)).''.
    (b) Treatment of Default Update.--
            (1) In general.--Section 1848(d)(3)(B) (42 U.S.C. 
        1395w@4(d)(3)(B)) is amended--
                    (A) in clause (i)--
                            (i) in the heading, by striking ``In 
                        general'' and inserting ``1992 through 1996'', 
                        and
                            (ii) by striking ``for a year'' and 
                        inserting ``for 1992, 1993, 1994, 1995, and 
                        1996''; and
                    (B) by adding after clause (ii) the following new 
                clause:
                            ``(iii) Years beginning with 1997.--
                                    ``(I) In general.--The update for a 
                                category of physicians' services for a 
                                year beginning with 1997 provided under 
                                subparagraph (A) shall be increased or 
                                decreased by the same percentage by 
                                which the cumulative percentage 
                                increase in actual expenditures for 
                                such category of physicians' services 
                                for such year was less or greater, 
                                respectively, than the performance 
                                standard rate of increase (established 
                                under subsection (f)) for such category 
                                of services for such year.
                                    ``(II) Cumulative percentage 
                                increase defined.--In subclause (I), 
                                the `cumulative percentage increase in 
                                actual expenditures' for a year shall 
                                be equal to the product of the adjusted 
                                increases for each year beginning with 
                                1995 up to and including the year 
                                involved, minus 1 and multiplied by 
                                100. In the previous sentence, the 
                                `adjusted increase' for a year is equal 
                                to 1 plus the percentage increase in 
                                actual expenditures for the year.''.
            (2) Conforming amendment.--Section 1848(d)(3)(A)(i) (42 
        U.S.C. 1395w@4(d)(3)(A)(i)) is amended by striking 
        ``subparagraph (B)'' and inserting ``subparagraphs (B) and 
        (C)''.

SEC. 12408. EXTENSION OF FREEZE ON UPDATES TO ROUTINE SERVICE COSTS OF 
              SKILLED NURSING FACILITIES.

    (a) Payments Based on Cost Limits.--Section 1888(a) of the Social 
Security Act (42 U.S.C. 1395yy(a)) is amended by striking ``112 
percent'' each place it appears and inserting ``100 percent (adjusted 
by such amount as the Secretary determines to be necessary to preserve 
the savings resulting from the enactment of section 13503(a)(1) of the 
Omnibus Budget Reconciliation Act of 1993)''.
    (b) Payments Determined on Prospective Basis.--Section 
1888(d)(2)(B) of such Act (42 U.S.C. 1395yy(d)(2)(B)) is amended by 
striking ``105 percent'' and inserting ``100 percent (adjusted by such 
amount as the Secretary determines to be necessary to preserve the 
savings resulting from the enactment of section 13503(b) of the Omnibus 
Budget Reconciliation Act of 1993)''.
    (c) Effective Date.--The amendments made by subsections (a) and(b) 
shall apply to cost reporting periods beginning on or after October 1, 
1995.

SEC. 12409. REDUCTION IN ROUTINE COST LIMITS FOR HOME HEALTH SERVICES.

    (a) Reduction in Update to Maintain Freeze in 1996.--Section 
1861(v)(1)(L)(i) of the Social Security Act (42 U.S.C. 
1395x(v)(1)(L)(i)) is amended--
            (1) in subclause (II), by striking ``or'' at the end;
            (2) in subclause (III), by striking ``112 percent,'' and 
        inserting ``and before July 1, 1996, 112 percent, or''; and
            (3) by inserting after subclause (III) the following new 
        subclause:
            ``(IV) July 1, 1996, 100 percent (adjusted by such amount 
        as the Secretary determines to be necessary to preserve the 
        savings resulting from the enactment of section 13564(a)(1) of 
        the Omnibus Budget Reconciliation Act of 1993),''.
    (b) Basing Limits in Subsequent Years on Median of Costs.--
            (1) In general.--Section 1861(v)(1)(L)(i) of such Act 
        (U.S.C. 1395x(v)(1)(L)(i)), as amended by subsection (a), is 
        amended in the matter following subclause (IV) by striking 
        ``the mean'' and inserting ``the median''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to cost reporting periods beginning on or after 
        July 1, 1997.

SEC. 12410. ELIMINATION OF FORMULA-DRIVEN OVERPAYMENTS FOR CERTAIN 
              OUTPATIENT HOSPITAL SERVICES.

    (a) Ambulatory Surgical Center Procedures.--Section 
1833(i)(3)(B)(i)(II) of the Social Security Act (42 U.S.C. 
1395l(i)(3)(B)(i)(II)) is amended--
            (1) by striking ``of 80 percent''; and
            (2) by striking the period at the end and inserting the 
        following: ``, less the amount a provider may charge as 
        described in clause (ii) of section 1866(a)(2)(A).''.
    (b) Radiology Services and Diagnostic Procedures.--Section 
1833(n)(1)(B)(i)(II) of such Act (42 U.S.C. 1395l(n)(1)(B)(i)(II)) is 
amended--
            (1) by striking ``of 80 percent''; and
            (2) by striking the period at the end and inserting the 
        following: ``, less the amount a provider may charge as 
        described in clause (ii) of section 1866(a)(2)(A).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to services furnished during portions of cost reporting periods 
occurring on or after July 1, 1994.
                      TITLE XIII--INCOME SECURITY

                   Subtitle A--Administrative Reform

SEC. 13001. ELIMINATION OF DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

    (a) Elimination of Department.--
            (1) In general.--The Department of Housing and Urban 
        Development Act (42 U.S.C. 3531 et seq.) is hereby repealed.
            (2) Effective date.--Paragraph (1) shall take effect on 
        January 1, 1998.
    (b) Termination of GNMA.--Section 302(a)(2)(A) of the National 
Housing Act (12 U.S.C. 1717(a)(2)(A)) is amended by adding at the end 
the following new sentences: ``Upon January 1, 1988 (or such earlier 
date as provided in the plan of the Secretary of Housing and Urban 
Development under section 13001(b) of the Restructuring a Limited 
Government Act), the body corporate described in this subparagraph 
shall cease to exist. Upon such date, any authority of the Department 
of Housing and Urban Development under this Act or any other Act to 
carry out duties and functions of the Association shall terminate, 
except to the extent provided in such plan as necessary to meet any 
outstanding obligations of the Association.''.
    (c) Duties of the Secretary.--
            (1) In general.--Notwithstanding any other provision of 
        this Act or any other provision of law, prior to January 1, 
        1998, the Secretary of Housing and Urban Development (hereafter 
        in this section referred to as the ``Secretary'') shall take 
        such actions as may be necessary to--
                    (A) consolidate the programs administered by the 
                Department of Housing and Urban Development into a 
                block grant program;
                    (B) convert all funding for public and assisted 
                housing under the United States Housing Act of 1937 to 
                tenant-based rental assistance;
                    (C) convert the Federal Housing Administration into 
                a government-controlled corporation, which would 
                provide mortgage insurance only to low- and moderate-
                income persons under risk-sharing agreements with 
                private mortgage insurers;
                    (D) transfer, if the Secretary determines 
                appropriate and feasible, the functions of the 
                Government National Mortgage Association to the Federal 
                National Mortgage Association or the Federal Home Loan 
                Mortgage Corporation, fulfill any outstanding 
                obligations of the Government National Mortgage 
                Association, and windup the business of such 
                Association; and
                    (E) otherwise provide for the complete elimination 
                of the Department of Housing and Urban Development 
                pursuant to subsections (a) and (b).
            (2) Submissions to congress.--
                    (A) Strategic plan.--Not later than 180 days after 
                the date of enactment of this Act, the Secretary shall 
                submit to the Congress a plan to carry out paragraph 
                (1), which shall include any recommendations for--
                            (i) legislation necessary to carry out 
                        paragraph (1);
                            (ii) transfers of functions and activities, 
                        including all existing obligations to other 
                        existing or successor Federal or State 
                        agencies.
                    (B) Privatization of fha.--Not later than 180 days 
                after the date of enactment of this Act, the Secretary 
                shall submit to the Congress a report which shall 
                include--
                            (i) recommendations and a strategic plan 
                        for the complete privatization of the Federal 
                        Housing Administration; and
                            (ii) a description of the projected cost 
                        savings to the Federal Government that would be 
                        achieved through the complete privatization of 
                        the Federal Housing Administration.
    (d) Congressional Budget Office Recommendations.--Not later than 
180 days after the date of enactment of this Act, the Director of the 
Congressional Budget Office shall submit to the Committee on Banking 
and Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the Senate a list 
of recommendations for minimizing the cost of Federal housing and 
community development programs through the elimination of the 
Department of Housing and Urban Development.
    (e) GAO Report.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committee on Banking and Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report which shall include 
recommendations for the most efficient means of achieving--
            (1) the complete elimination of the Department of Housing 
        and Urban Development; and
            (2) the transfer of the functions of the Department of 
        Housing and Urban Development to other existing or successor 
        Federal or State agencies.
    (f) Transfer of Functions and Savings Provisions.--
            (1) Definitions.--For purposes of this subsection, unless 
        otherwise provided or indicated by the context--
                    (A) the term ``Federal agency'' has the meaning 
                given to the term ``agency'' by section 551(1) of title 
                5, United States Code;
                    (B) the term ``function'' means any duty, 
                obligation, power, authority, responsibility, right, 
                privilege, activity, or program; and
                    (C) the term ``office'' includes any office, 
                administration, agency, institute, unit, organizational 
                entity, or component thereof.
            (2) Transfer of functions.--There are transferred to the 
        Department of Justice all functions which the Secretary of 
        Housing and Urban Development exercised before the date of the 
        enactment of this Act (including all related functions of any 
        officer or employee of the Department of Housing and Urban 
        Development) relating to the Fair Housing Act or the rights 
        granted under the Fair Housing Act.
            (3) Determinations of certain functions by the office of 
        management and budget.--If necessary, the Office of Management 
        and Budget shall make any determination of the functions that 
        are transferred under paragraph (2).
            (4) Personnel provisions.--
                    (A) Appointments.--The attorney general may appoint 
                and fix the compensation of such officers and 
                employees, including investigators, attorneys, and 
                administrative law judges, as may be necessary to carry 
                out the respective functions transferred under this 
                subsection. Except as otherwise provided by law, such 
                officers and employees shall be appointed in accordance 
                with the civil service laws and their compensation 
                fixed in accordance with title 5, United States Code.
                    (B) Experts and consultants.--The Attorney General 
                may obtain the services of experts and consultants in 
                accordance with section 3109 of title 5, United States 
                Code, and compensate such experts and consultants for 
                each day (including travel time) at rates not in excess 
                of the rate of pay for level IV of the Executive 
                Schedule under section 5315 of such title. The Attorney 
                General may pay experts and consultants who are serving 
                away from their homes or regular place of business 
                travel expenses and per diem in lieu of subsistence at 
                rates authorized by sections 5702 and 5703 of such 
                title for persons in Government service employed 
                intermittently.
            (5) Delegation and assignment.--Except where otherwise 
        expressly prohibited by law or otherwise provided by this 
        subsection, the Attorney General may delegate any of the 
        functions transferred to the Attorney General by this title and 
        any function transferred or granted to such Attorney General 
        after the effective date of this subsection to such officers 
        and employees of the Department of Justice as the Attorney 
        General may designate, and may authorize successive 
        redelegations of such functions as may be necessary or 
        appropriate. No delegation of functions by the Attorney General 
        under this paragraph or under any other provision of this 
        subsection shall relieve such Attorney General of 
        responsibility for the administration of such functions.
            (6) Reorganization.--The Attorney General is authorized to 
        allocate or reallocate any function transferred under paragraph 
        (2) among the officers of the Department of Justice, and to 
        establish, consolidate, alter, or discontinue such 
        organizational entities in the Department of Justice as may be 
        necessary or appropriate.
            (7) Rules.--The Attorney General is authorized to 
        prescribe, in accordance with the provisions of chapters 5 and 
        6 of title 5, United States Code, such rules and regulations as 
        the Attorney General determines necessary or appropriate to 
        administer and manage the functions of the Department of 
        Justice.
            (8) Transfer and allocations of appropriations and 
        personnel.--Except as otherwise provided in this subsection, 
        the personnel employed in connection with, and the assets, 
        liabilities, contracts, property, records, and unexpended 
        balances of appropriations, authorizations, allocations, and 
        other funds employed, used, held, arising from, available to, 
        or to be made available in connection with the functions 
        transferred by this subsection, subject to section 1531 of 
        title 31, United States Code, shall be transferred to the 
        Department of Justice. Unexpended funds transferred pursuant to 
        this paragraph shall be used only for the purposes for which 
        the funds were originally authorized and appropriated.
            (9) Incidental transfers.--The Director of the Office of 
        Management and Budget, at such time or times as the Director 
        shall provide, is authorized to make such determinations as may 
        be necessary with regard to the functions transferred by this 
        subsection, and to make such additional incidental dispositions 
        of personnel, assets, liabilities, grants, contracts, property, 
        records, and unexpended balances of appropriations, 
        authorizations, allocations, and other funds held, used, 
        arising from, available to, or to be made available in 
        connection with such functions, as may be necessary to carry 
        out the provisions of this subsection. The Director of the 
        Office of Management and Budget shall provide for the 
        termination of the affairs of all entities terminated by this 
        subsection and for such further measures and dispositions as 
        may be necessary to effectuate the purposes of this subsection.
            (10) Effect on personnel.--
                    (A) In general.--Except as otherwise provided by 
                this subsection, the transfer pursuant to this 
                subsection of full-time personnel (except special 
                Government employees) and part-time personnel holding 
                permanent positions shall not cause any such employee 
                to be separated or reduced in grade or compensation for 
                one year after the date of transfer of such employee 
                under this subsection.
                    (B) Executive schedule positions.--Except as 
                otherwise provided in this subsection, any person who, 
                on the day preceding the effective date of this 
                subsection, held a position compensated in accordance 
                with the Executive Schedule prescribed in chapter 53 of 
                title 5, United States Code, and who, without a break 
                in service, is appointed in the Department of Justice 
                to a position having duties comparable to the duties 
                performed immediately preceding such appointment shall 
                continue to be compensated in such new position at not 
                less than the rate provided for such previous position, 
                for the duration of the service of such person in such 
                new position.
                    (C) Termination of certain positions.--Positions 
                whose incumbents are appointed by the President, by and 
                with the advice and consent of the Senate, the 
                functions of which are transferred by this subsection, 
                shall terminate on the effective date of this 
                subsection.
            (11) Savings Provisions.--
                    (A) Continuing effect of legal documents.--All 
                orders, determinations, rules, regulations, permits, 
                agreements, grants, contracts, certificates, licenses, 
                registrations, privileges, and other administrative 
                actions--
                            (i) which have been issued, made, granted, 
                        or allowed to become effective by the 
                        President, any Federal agency or official 
                        thereof, or by a court of competent 
                        jurisdiction, in the performance of functions 
                        which are transferred under this subsection, 
                        and
                            (ii) which are in effect at the time this 
                        subsection takes effect, or were final before 
                        the effective date of this subsection and are 
                        to become effective on or after the effective 
                        date of this subsection,
                shall continue in effect according to their terms until 
                modified, terminated, superseded, set aside, or revoked 
                in accordance with law by the President, the Attorney 
                General or other authorized official, a court of 
                competent jurisdiction, or by operation of law.
                    (B) Proceedings not affected.--The provisions of 
                this subsection shall not affect any proceedings, 
                including notices of proposed rulemaking, or any 
                application for any license, permit, certificate, or 
                financial assistance pending before the Department of 
                Housing and Urban Development at the time this 
                subsection takes effect, with respect to functions 
                transferred by this subsection but such proceedings and 
                applications shall be continued. Orders shall be issued 
                in such proceedings, appeals shall be taken therefrom, 
                and payments shall be made pursuant to such orders, as 
                if this subsection had not been enacted, and orders 
                issued in any such proceedings shall continue in effect 
                until modified, terminated, superseded, or revoked by a 
                duly authorized official, by a court of competent 
                jurisdiction, or by operation of law. Nothing in this 
                subparagraph shall be deemed to prohibit the 
                discontinuance or modification of any such proceeding 
                under the same terms and conditions and to the same 
                extent that such proceeding could have been 
                discontinued or modified if this subsection had not 
                been enacted.
                    (C) Suits not affected.--The provisions of this 
                subsection shall not affect suits commenced before the 
                effective date of this subsection, and in all such 
                suits, proceedings shall be had, appeals taken, and 
                judgments rendered in the same manner and with the same 
                effect as if this subsection had not been enacted.
                    (D) Nonabatement of actions.--No suit, action, or 
                other proceeding commenced by or against the Department 
                of Housing and Urban Development, or by or against any 
                individual in the official capacity of such individual 
                as an officer of the Department of Housing and Urban 
                Development, shall abate by reason of the enactment of 
                this subsection.
                    (E) Administrative actions relating to promulgation 
                of regulations.--Any administrative action relating to 
                the preparation or promulgation of a regulation by the 
                Department of Housing and Urban Development relating to 
                a function transferred under this subsection may be 
                continued by the Department of
                 Justice with the same effect as if this subsection had 
not been enacted.
            (12) Separability.--If a provision of this subsection or 
        its application to any person or circumstance is held invalid, 
        neither the remainder of this subsection nor the application of 
        the provision to other persons or circumstances shall be 
        affected.
            (13) Transition.--The Attorney General is authorized to 
        utilize--
                    (A) the services of such officers, employees, and 
                other personnel of the Department of Housing and Urban 
                Development with respect to functions transferred to 
                the Department of Justice by this subsection; and
                    (B) funds appropriated to such functions for such 
                period of time as may reasonably be needed to 
                facilitate the orderly implementation of this 
                subsection.
            (14) References.--Reference in any other Federal law, 
        executive order, rule, regulation, or delegation of authority, 
        or any document of or relating to--
                    (A) the Secretary of Housing and Urban Development 
                with regard to functions transferred under paragraph 
                (2), shall be deemed to refer to the Attorney General; 
                and
                    (B) the Department of Housing and Urban Development 
                with regard to functions transferred under paragraph 
                (2), shall be deemed to refer to the Department of 
                Justice.
            (15) Additional conforming amendments.--
                    (A) Recommended legislation.--After consultation 
                with the appropriate committees of the Congress and the 
                Director of the Office of Management and Budget, the 
                Attorney General shall prepare and submit to the 
                Congress recommended legislation containing technical 
                and conforming amendments to reflect the changes made 
                by this subsection.
                    (B) Submission to the congress.--No later than 6 
                months after the effective date of this subsection, the 
                Attorney General shall submit the recommended 
                legislation referred to under subparagraph (A).
            (16) Effective Date.--This subsection shall take effect 180 
        days after the date of enactment of this Act.

                  Subtitle B--Housing Program Reforms

SEC. 13101. ELIMINATION OF OPERATING SUBSIDIES FOR VACANT PUBLIC 
              HOUSING.

    (a) In General.--Section 9(a)(3)(B) of the United States Housing 
Act of 1937 (42 U.S.C. 1437g(a)(3)(B)) is amended--
            (1) in clause (iv), by striking ``and'' at the end;
            (2) in clause (v), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
            ``(vi) no payment may be provided under this section for 
        any dwelling unit that has been vacant for a period of 180 days 
        or more unless such unit is vacant because of comprehensive 
        modernization, major reconstruction, demolition, or disposition 
        activities that have been funded or approved.''.
    (b) Elimination of Annual Contribution Reserve.--Section 14(p) of 
the United States Housing Act of 1937 (42 U.S.C. 1437l(p)) is amended 
by striking paragraph (3).
    (c) Recapture of Annual Contribution Reserve.--The Secretary of 
Housing and Urban Development shall recapture any amounts reserved from 
annual contributions for public housing agencies and deposited in 
accounts established on behalf of the agencies pursuant to paragraph 
(3) of section 14(p) of the United States Housing Act of 1937 (as in 
effect immediately before the date of the enactment of this Act).

SEC. 13102. INCREASE OF TENANT CONTRIBUTIONS.

    (a) United States Housing Act of 1937.--The United States Housing 
Act of 1937 (42 U.S.C. 1437 et seq.) is amended as follows:
            (1) General rule for section 8 and public housing.--In 
        section 3(a)(1)(A), by striking ``30 per centum'' and inserting 
        ``35 percent''.
            (2) Section 8 vouchers.--In section 8(o)--
                    (A) in paragraph (2), by striking ``30 per centum'' 
                and inserting ``35 percent''; and
                    (B) in paragraph (11)(B)(ii), by striking ``30 
                percent'' and inserting ``35 percent''.
            (3) Section 8 assistance for rental rehabilitation 
        projects.--In section 8(u)(2), by striking ``30 percent'' and 
        inserting ``35 percent''.
            (4) Section 8 homeownership assistance.--In section 
        8(y)(2)(A), by striking ``30 percent'' and inserting ``35 
        percent''.
            (5) Displacement assistance.--In section 16(d)(1), by 
        striking ``30 percent'' and inserting ``35 percent''.
            (6) Family self-sufficiency program.--In section 23(d), by 
        striking ``30 percent'' each place it appears and inserting 
        ``35 percent''.
            (7) Mutual help homeownership program for indian housing.--
        In section 202(e)(2)(A)(i)(I), by striking ``30 percent'' and 
        inserting ``35 percent''.
    (b) Section 8 Assistance for Preservation of State-Sponsored Low-
Income Housing.--Section 613(b)(2) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 4125(b)(2)) is amended by striking 
``30 percent'' and inserting ``35 percent''.
    (c) Low-Income Housing Preservation Programs.--
            (1) Lihprh act of 1990.--The Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990 is 
        amended--
                    (A) in section 218(a)(1)(A) (12 U.S.C. 
                4108(a)(1)(A)), by striking ``30 percent'' and 
                inserting ``35 percent''; and
                    (B) in section 222(a)(2)(D)(i) (12 U.S.C. 
                4112(a)(2)(D)(i)), by striking ``30 percent'' and 
                inserting ``35 percent''.
            (2) Elihp act of 1987.--Any reference in the provisions of 
        the Emergency Low Income Housing Preservation Act of 1987 (as 
        in effect before the date of the enactment of the Cranston-
        Gonzalez National Affordable Housing Act) to 30 percent of the 
        adjusted income of a tenant or family shall be considered to 
        mean 35 percent of such adjusted income, for purposes of the 
        applicability of the provisions of the Emergency Low Income 
        Housing Preservation Act of 1987 pursuant to section 604 of the 
        Cranston-Gonzalez National Affordable Housing Act.

SEC. 13103. REDUCTION OF PHA ADMINISTRATIVE FEES FOR SECTION 8 RENTAL 
              ASSISTANCE PROGRAM.

    (a) Monthly Fee.--
            (1) In general.--Section 8(q)(1) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(q)(1)) is amended--
                    (A) by striking the 2d sentence and inserting the 
                following new sentences: ``In fiscal year 1996 the 
                amount of the fee for each month for which a dwelling 
                unit is covered by an assistance contract shall be 
                7.2375 percent of the fair market rental established 
                under subsection (c)(1) for a 2-bedroom existing rental 
                dwelling unit in the market area of the public housing 
                agency. In fiscal year 1997 and in each fiscal year 
                thereafter, the fee shall be 5.0 percent of such fair 
                market rental.''; and
                    (B) in the last sentence, by striking ``fee'' and 
                inserting ``amount of the fee established under this 
                paragraph, for certain programs,''.
            (2) Effective date and applicability.--
                    (A) Effective date.--The amendments under paragraph 
                (1) shall be made on October 1, 1995.
                    (B) Applicability.--The amendments made by this 
                subsection shall apply to any dwelling units covered by 
                an assistance contract under section 8 of the United 
                States Housing Act of 1937 in effect on October 1, 
                1995, and any units covered by such a contract entered 
                into or renewed on or after such date.
    (b) Start-Up Fee.--
            (1) In general.--Section 8(q)(2)(A)(i) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(q)(2)(A)(i)) is amended by 
        striking ``$275'' and inserting ``$590''.
            (2) Effective date.--The amendment under paragraph (1) 
        shall be made and shall take effect on October 1, 1995.

            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.

    Section 1631(e)(1)(C) of the Social Security Act (42 U.S.C. 
1383(e)(1)(C)), as added by section 6(a) of the Social Security 
Domestic Employment Reform Act of 1994, is amended by striking ``2 
weeks'' and inserting ``1 day''.

SEC. 13202. REDUCED UNEARNED INCOME EXCLUSION UNDER THE SUPPLEMENTAL 
              SECURITY INCOME PROGRAM.

    Section 1612(b)(3)(A) of the Social Security Act (42 U.S.C. 
1382a(b)(3)(A)) is amended by striking ``$20'' and inserting ``$15''.
SEC. 13203. RECOVERY OF SSI OVERPAYMENTS FROM SOCIAL SECURITY BENEFITS.

    (a) In General.--Part A of title XI of the Social Security Act (42 
U.S.C. 1301 et seq.) is amended by adding at the end the following new 
section:

           ``recovery of ssi overpayments from oasdi benefits

    ``Sec. 1144. (a) Whenever the Commissioner of Social Security 
determines that more than the correct amount of supplemental security 
income benefits has been paid to any person and the Commissioner is 
unable to make proper adjustment or recovery of the amount so 
incorrectly paid as provided in section 1631(b), the Commissioner 
(notwithstanding section 207) may recover the amount incorrectly paid 
by reducing monthly insurance benefits otherwise payable under title II 
to such person or such person's estate.
    ``(b) Together with any certification for payment of monthly 
insurance benefits under title II pursuant to section 205(i), the 
Commissioner shall include a certification of the amount of any 
reduction in such benefits made pursuant to subsection (a). Upon 
receipt of such certification of the amount of the reduction, the 
Secretary of the Treasury, as Managing Trustee of the Federal Old-Age 
and Survivors Insurance Trust Fund or the Federal Disability Insurance 
Trust Fund, shall transfer an amount equal to the amount of such 
reduction as so certified from the appropriate Trust Fund to the 
general fund of the Treasury.
    ``(c) For purposes of this section, the term `supplemental security 
income benefit' means a benefit under title XVI, including a 
supplementary payment of the type described in section 1616(a) and a 
payment pursuant to an administration agreement entered into under 
section 212(b) of Public Law 93-66.''.
    (b) Conforming Amendment.--Section 1631(b) of such Act (42 U.S.C. 
1383(b)) is amended by adding at the end the following new paragraph:
    ``(6) For provisions relating to the recovery of overpayments under 
this title by means of reduction in benefits otherwise payable under 
title II, see section 1144.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to 
overpayments outstanding on or after such date.

                   Subtitle D--Civil Service Reforms

SEC. 13301. INCREASE IN RETIREMENT AGE UNDER FERS TO 65.

    (a) In General.--Chapter 84 of title 5, United States Code, is 
amended by adding at the end the following:

 ``SUBCHAPTER VIII--SPECIAL RULES FOR CERTAIN POST-1993 NEW EMPLOYEES 
                              AND MEMBERS

``Sec. 8481. Applicability
    ``(a) This subchapter sets forth special rules in conformance with 
which this chapter shall be applied with respect to any employee who 
first becomes an employee subject to this chapter, or who is first 
elected as a Member, after December 31, 1994.
    ``(b) Nothing in this subchapter shall be considered to apply with 
respect to any employee or Member not described in subsection (a) or to 
have any effect except for the purpose referred to in such subsection.
``Sec. 8482. Immediate retirement
    ``Deem section 8412 to be amended as follows:
            ``(1) Subsection (c) is amended by striking `62' and 
        inserting `65'.
            ``(2) Subsections (a), (b), (f), and (g) are repealed.
``Sec. 8483. Deferred retirement
    ``Deem section 8413 to be amended as follows:
            ``(1) Subsection (a) is amended by striking `62' and 
        inserting `65'.
            ``(2) Subsection (b) is repealed.
``Sec. 8484. References to age 62
    ``(a) Deem section 8415 to be amended as follows:
            ``(1) Subsection (f) is repealed.
            ``(2) Subsection (g)(2)(B) is amended by striking `is at 
        least 62 years of age and'.
    ``(b) Deem section 8442 to be amended in subsections (c)(2)(B) and 
(g)(2)(B) by striking `62' each place it appears and inserting `65'.
    ``(c) Deem section 8452(b)(1) to be amended by striking `sixty-
second' and inserting `sixty-fifth'.''.
    (b) Chapter Analysis.--The analysis for chapter 84 of title 5, 
United States Code, is amended by adding 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.''.
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.

    Section 1401a(b)(1) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``In the case of a member 
or former member under age 62 (other than a member retired under 
chapter 61 of this title) who first became a member on or after January 
1, 1996, such increase shall not become payable as part of the retired 
pay of the member or former member until the month in which the member 
or former member becomes 62 years of age.''.

SEC. 13303. PROVISION RELATING TO GOVERNMENT CONTRIBUTIONS TO THE 
              THRIFT SAVINGS PLAN.

    Section 8432(c)(2)(B) of title 5, United States Code, is amended by 
adding at the end the following: ``Clause (ii) shall not apply with 
respect to any employee or Member described in section 8481(a).''.

                 Subtitle E--Assistance Program Reforms

SEC. 13401. LOW-INCOME HOME ENERGY ASSISTANCE.

    Section 2602(b) of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8621(b)) is amended by inserting after the first 
sentence the following new sentence: ``There are authorized to be 
appropriated to carry out this title $700,000,000 for each of the 
fiscal years 1996 through 2000.''.

SEC. 13402. ADDITIONAL REQUIREMENTS FOR UNEMPLOYMENT BENEFITS.

    (a) General Rule.--Subsection (a) of section 3304 of the Internal 
Revenue Code of 1986 (relating to approval of State laws) is amended by 
striking ``and'' at the end of paragraph (17), by redesignating 
paragraph (18) as paragraph (20), and by inserting after paragraph (17) 
the following new paragraphs:
            ``(18) compensation shall not be payable to any individual 
        for such individual's first 2 weeks of otherwise compensable 
        unemployment during any benefit year; except that this 
        paragraph shall not apply in the case of a benefit year which 
        immediately follows the ending of a preceding benefit year for 
        the individual;
            ``(19) compensation shall not be payable to any individual 
        for any benefit year if the taxable income of such individual 
        for such individual's most recent taxable year ending before 
        the beginning of such benefit year exceeded $120,000; and''.
    (b) Conforming Amendment.--Paragraph (2) of section 204(a) of the 
Federal-State Extended Unemployment Compensation Act of 1970 is amended 
by striking subparagraph (B) and redesignating subparagraphs (C) and 
(D) as subparagraphs (B) and (C), respectively.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to benefit years 
        beginning after September 30, 1995.
            (2) Special rule.--In the case of any State the legislature 
        of which has not been in session for at least 30 calendar days 
        (whether or not successive) between the date of the enactment 
        of this Act and September 30, 1995, the amendments made by this 
        section shall apply to benefit years beginning after the day 30 
        calendar days after the first day on which such legislature is 
        in session on or after September 30, 1995.
SEC. 13403. DENIAL OF UNEMPLOYMENT BENEFITS TO INDIVIDUALS WHO 
              VOLUNTARILY LEAVE MILITARY SERVICE.

    (a) General Rule.--Paragraph (1) of section 8521(a) of title 5, 
United States Code, is amended to read as follows:
            ``(1) `Federal service' means active service (not including 
        active duty in a reserve status unless for a continuous period 
        of 45 days or more) in the armed forces or the commissioned 
        corps of the National Oceanic and Atmospheric Administration if 
        with respect to that service the individual--
                    ``(A) was discharged or released under honorable 
                conditions,
                    ``(B) did not resign or voluntarily leave the 
                service, and
                    ``(C) was not discharged or released for cause as 
                defined by the Secretary of Defense;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply in the case of a discharge or release after the date of the 
enactment of this Act.

SEC. 13404. INCREASE IN VARIABLE RATE PREMIUM CHARGED BY THE PENSION 
              BENEFIT GUARANTY CORPORATION TO SINGLE-EMPLOYER PLANS.

    (a) In General.--Clause (ii) of section 4006(a)(3)(E) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)(E)(ii)) is amended by striking ``$9.00'' and inserting 
``$18.00''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to plan years beginning on or after January 1, 1997.
       TITLE XIV--PERSONAL RESPONSIBILITY AND FAMILY PRESERVATION

SEC. 14001. SHORT TITLE.

    This title may be cited as the ``Personal Responsibility Act of 
1995''.

SEC. 14002. TABLE OF CONTENTS.

    The table of contents of this title is as follows:

       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.
       Chapsubchapter a--family nutrition block grant programnts
Sec. 143subchapter b--school-based nutrition block grant program
Sec. 14341. Amendsubchapter 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

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.
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.
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 Non- 
                          Residential 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.
  Subtitle A--Block Grants for Temporary Assistance for Needy Families

SEC. 14100. SENSE OF THE CONGRESS.

    It is the sense of the Congress that--
            (1) marriage is the foundation of a successful society;
            (2) marriage is an essential social institution which 
        promotes the interests of children and society at large;
            (3) the negative consequences of an out-of-wedlock birth on 
        the child, the mother, and society are well documented as 
        follows:
                    (A) the illegitimacy rate among black Americans was 
                26 percent in 1965, but today the rate is 68 percent 
                and climbing;
                    (B) the illegitimacy rate among white Americans has 
                risen tenfold, from 2.29 percent in 1960 to 22 percent 
                today;
                    (C) the total of all out-of-wedlock births between 
                1970 and 1991 has risen from 10 percent to 30 percent 
                and if the current trend continues, 50 percent of all 
                births by the year 2015 will be out-of-wedlock;
                    (D) \3/4\ of illegitimate births among whites are 
                to women with a high school education or less;
                    (E) the 1-parent family is 6 times more likely to 
                be poor than the 2-parent family;
                    (F) children born into families receiving welfare 
                assistance are 3 times more likely than children not 
                born into families receiving welfare to be on welfare 
                when they reach adulthood;
                    (G) teenage single parent mothering is the single 
                biggest contributor to low birth weight babies;
                    (H) children born out-of-wedlock are more likely to 
                experience low verbal cognitive attainment, child 
                abuse, and neglect;
                    (I) young people from single parent or stepparent 
                families are 2 to 3 times more likely to have emotional 
                or behavioral problems than those from intact families;
                    (J) young white women who were raised in a single 
                parent family are more than twice as likely to have 
                children out-of-wedlock and to become parents as 
                teenagers, and almost twice as likely to have their 
                marriages end in divorce, as are children from 2-parent 
                families;
                    (K) the younger the single parent mother, the less 
                likely she is to finish high school;
                    (L) young women who have children before finishing 
                high school are more likely to receive welfare 
                assistance for a longer period of time;
                    (M) between 1985 and 1990, the public cost of 
                births to teenage mothers under the aid to families 
                with dependent children program, the food stamp 
                program, and the medicaid program has been estimated at 
                $120,000,000,000;
                    (N) the absence of a father in the life of a child 
                has a negative effect on school performance and peer 
                adjustment;
                    (O) the likelihood that a young black man will 
                engage in criminal activities doubles if he is raised 
                without a father and triples if he lives in a 
                neighborhood with a high concentration of single parent 
                families; and
                    (P) the greater the incidence of single parent 
                families in a neighborhood, the higher the incidence of 
                violent crime and burglary; and
            (4) in light of this demonstration of the crisis in our 
        Nation, the reduction of out-of-wedlock births is an important 
        government interest and the policy contained in provisions of 
        this subtitle address the crisis.

SEC. 14101. BLOCK GRANTS TO STATES.

    Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is 
amended by striking part A, except sections 403(h) and 417, and 
inserting the following:

  ``PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY 
                                FAMILIES

``SEC. 401. PURPOSE.

    ``The purpose of this part is to increase the flexibility of States 
in operating a program designed to--
            ``(1) provide assistance to needy families so that the 
        children in such families may be cared for in their homes or in 
        the homes of relatives;
            ``(2) end the dependence of needy parents on government 
        benefits by promoting work and marriage; and
            ``(3) discourage out-of-wedlock births.

``SEC. 402. ELIGIBLE STATES; STATE PLAN.

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that, during the 3-year 
period immediately preceding the fiscal year, has submitted to the 
Secretary a plan that includes the following:
            ``(1) Outline of family assistance program.--A written 
        document that outlines how the State intends to do the 
        following:
                    ``(A) Conduct a program designed to--
                            ``(i) provide cash benefits to needy 
                        families with children; and
                            ``(ii) provide parents of children in such 
                        families with work experience, assistance in 
                        finding employment, and other work preparation 
                        activities and support services that the State 
                        considers appropriate to enable such families 
                        to leave the program and become self-
                        sufficient.
                    ``(B) Require at least 1 parent of a child in any 
                family which has received benefits for more than 24 
                months (whether or not consecutive) under the program 
                to engage in work activities (as defined by the State).
                    ``(C) Ensure that parents receiving assistance 
                under the program engage in work activities in 
                accordance with section 404.
                    ``(D) Treat interstate immigrants, if families 
                including such immigrants are to be treated differently 
                than other families.
                    ``(E) Take such reasonable steps as the State deems 
                necessary to restrict the use and disclosure of 
                information about individuals and families receiving 
                benefits under the program.
                    ``(F) Take actions to reduce the incidence of out-
                of-wedlock pregnancies, which may include providing 
                unmarried mothers and unmarried fathers with services 
                which will help them--
                            ``(i) avoid subsequent pregnancies; and
                            ``(ii) provide adequate care to their 
                        children.
                    ``(G) Reduce teenage pregnancy, including (at the 
                option of the State) through the provision of education 
                and counseling to male and female teenagers.
            ``(2) Certification that the state will operate a child 
        support enforcement program.--A certification by the Governor 
        of the State that, during the fiscal year, the State will 
        operate a child support enforcement program under the State 
        plan approved under part D, in a manner that complies with the 
        requirements of such part.
            ``(3) Certification that the state will operate a child 
        protection program.--A certification by the Governor of the 
        State that, during the fiscal year, the State will operate a 
        child protection program in accordance with part B, which 
        includes a foster care program and an adoption assistance 
        program.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a).

``SEC. 403. PAYMENTS TO STATES.

    ``(a) Entitlements.--
            ``(1) Grants for family assistance.--
                    ``(A) In general.--Each eligible State shall be 
                entitled to receive from the Secretary for each of 
                fiscal years 1996, 1997, 1998, 1999, and 2000 a grant 
                in an amount equal to the State family assistance grant 
                for the fiscal year.
                    ``(B) Grant increased to reward states that reduce 
                out-of-wedlock births.--The amount of the grant payable 
                to a State under subparagraph (A) for fiscal year 1998 
                or any succeeding fiscal year shall be increased by--
                            ``(i) 5 percent if the illegitimacy ratio 
                        of the State for the fiscal year is at least 1 
                        percentage point lower than the illegitimacy 
                        ratio of the State for fiscal year 1995; or
                            ``(ii) 10 percent if the illegitimacy ratio 
                        of the State for the fiscal year is at least 2 
                        percentage points lower than the illegitimacy 
                        ratio of the State for fiscal year 1995.
            ``(2) Supplemental grants to adjust for population 
        increases.--In addition to any grant under paragraph (1), each 
        eligible State shall be entitled to receive from the Secretary 
        for each of fiscal years 1997, 1998, 1999, and 2000, a grant in 
        an amount equal to the State proportion of $100,000,000.
    ``(b) Definitions.--As used in this section:
            ``(1) State family assistance grant.--
                    ``(A) In general.--The term `State family 
                assistance grant' means, with respect to a fiscal year, 
                the provisional State family assistance grant adjusted 
                in accordance with subparagraph (C).
                    ``(B) Provisional state family assistance grant.--
                The term `provisional State family assistance grant' 
                means--
                            ``(i) the greater of--
                                    ``(I) \1/3\ of the total amount of 
                                obligations to the State under section 
                                403 of this title (as in effect before 
                                October 1, 1995) for fiscal years 1992, 
                                1993, and 1994 (other than with respect 
                                to amounts expended for child care 
                                under subsection (g) or (i) of section 
                                402 of this title (as so in effect)); 
                                or
                                    ``(II) the total amount of 
                                obligations to the State under such 
                                section 403 for fiscal year 1994 (other 
                                than with respect to amounts expended 
                                for child care under subsection (g) or 
                                (i) of section 402 of this title (as so 
                                in effect)); multiplied by
                            ``(ii)(I) the total amount of outlays to 
                        all of the States under such section 403 for 
                        fiscal year 1994 (other than with respect to 
                        amounts expended for child care under 
                        subsection (g) or (i) of section 402 of this 
                        title (as so in effect)); divided by
                            ``(II) the total amount of obligations to 
                        all of the States under such section 403 for 
                        fiscal year 1994 (other than with respect to 
                        amounts expended for child care under 
                        subsection (g) or (i) of section 402 of this 
                        title (as so in effect)).
                    ``(C) Proportional adjustment.--The Secretary shall 
                determine the percentage (if any) by which each 
                provisional State family assistance grant must be 
                reduced or increased to ensure that the sum of such 
                grants equals $15,390,296,000, and shall adjust each 
                provisional State family assistance grant by the 
                percentage so determined.
            ``(2) Illegitimacy ratio.--The term `illegitimacy ratio' 
        means, with respect to a State and a fiscal year--
                    ``(A) the sum of--
                            ``(i) the number of out-of-wedlock births 
                        that occurred in the State during the most 
                        recent fiscal year for which such information 
                        is available; and
                            ``(ii) the amount (if any) by which the 
                        number of abortions performed in the State 
                        during the most recent fiscal year for which 
                        such information is available exceeds the 
                        number of abortions performed in the State 
                        during the fiscal year that immediately 
                        precedes such most recent fiscal year; divided 
                        by
                    ``(B) the number of births that occurred in the 
                State during the most recent fiscal year for which such 
                information is available.
            ``(3) State proportion.--The term `State proportion' means, 
        with respect to a fiscal year, the
         amount that bears the same ratio to the amount specified in 
subsection (a)(2) as the increase (if any) in the population of the 
State for the most recent fiscal year for which such information is 
available over the population of the State for the fiscal year that 
immediately precedes such most recent fiscal year bears to the total 
increase in the population of all States which have such an increase in 
population, as determined by the Secretary using data from the Bureau 
of the Census.
            ``(4) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
            ``(5) State.--The term `State' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa.
    ``(c) Use of Grant.--
            ``(1) In general.--A State to which a grant is made under 
        this section may use the grant in any manner that is reasonably 
        calculated to accomplish the purpose of this part, subject to 
        this part, including to provide noncash assistance to mothers 
        who have not attained 18 years of age and their children and to 
        provide low income households with assistance in meeting home 
        heating and cooling costs. Notwithstanding any other provision 
        of this Act, a State to which a grant is made under section 403 
        may not use any part of the grant to provide medical services.
            ``(2) Authority to treat interstate immigrants under rules 
        of former state.--A State to which a grant is made under this 
        section may apply to a family the rules of the program operated 
        under this part of another State if the family has moved to the 
        State from the other State and has resided in the State for 
        less than 12 months.
            ``(3) Authority to use portion of grant for other 
        purposes.--
                    ``(A) In general.--A State may use not more than 30 
                percent of the amount of the grant made to the State 
                under this section for a fiscal year to carry out a 
                State program pursuant to any or all of the following 
                provisions of law:
                            ``(i) Part B of this title.
                            ``(ii) Title XX of this Act.
                            ``(iii) Any provision of law, enacted into 
                        law during the 104th Congress, under which 
                        grants are made to States for food and 
                        nutrition.
                            ``(iv) The Child Care and Development Block 
                        Grant Act of 1990.
                    ``(B) Applicable rules.--Any amount paid to the 
                State under this part that is used to carry out a State 
                program pursuant to a provision of law specified in 
                subparagraph (A) shall not be subject to the 
                requirements of this part, but shall be subject to the 
                requirements that apply to Federal funds provided 
                directly under the provision of law to carry out the 
                program.
            ``(4) Authority to reserve certain amounts for emergency 
        benefits.--A State may reserve amounts paid to the State under 
        this section for any fiscal year for the purpose of providing 
        emergency assistance under the State program operated under 
        this part.
            ``(5) Implementation of electronic benefit transfer 
        system.--A State to which a grant is made under this section is 
        encouraged to implement an electronic benefit transfer system 
        for providing assistance under the State program funded under 
        this part, and may use the grant for such purpose.
    ``(d) Timing of Payments.--The Secretary shall pay each grant 
payable to a State under this section in quarterly installments.
    ``(e) Penalties.--
            ``(1) For use of grant in violation of this part.--
                    ``(A) In general.--If an audit conducted pursuant 
                to chapter 75 of title 31, United States Code, finds 
                that an amount paid to a State under this section for a 
                fiscal year has been used in violation of this part, 
                then the Secretary shall reduce the amount of the grant 
                otherwise payable to the State under this section for 
                the immediately succeeding fiscal year by the amount so 
                used.
                    ``(B) Limitation on amount of penalty.--In carrying 
                out subparagraph (A), the Secretary shall not reduce 
                any quarterly payment by more than 25 percent.
                    ``(C) Carryforward of unrecovered penalties.--To 
                the extent that subparagraph (B) prevents the Secretary 
                from recovering during a fiscal year the full amount of 
                a penalty imposed on a State under subparagraph (A) for 
                a prior fiscal year, the Secretary shall apply 
                subparagraph (A) to the grant otherwise payable to the 
                State under this section for the immediately succeeding 
                fiscal year.
            ``(2) For failure to submit required report.--
                    ``(A) In general.--If the Secretary determines that 
                a State has not, within 6 months after the end of a 
                fiscal year, submitted the report required by section 
                406 for the fiscal year, the Secretary shall reduce by 
                3 percent the amount of the grant that would (in the 
                absence of this subsection, subsection (a)(1)(B) of 
                this section, and section 404(c)(2)) be payable to the 
                State under subsection (a)(1)(A) for the immediately 
                succeeding fiscal year.
                    ``(B) Rescission of penalty.--The Secretary shall 
                rescind a penalty imposed on a State under subparagraph 
                (A) with respect to a report for a fiscal year if the 
                State submits the report before the end of the 
                immediately succeeding fiscal year.
            ``(3) For failure to participate in the income and 
        eligibility verification system.--If
         the Secretary determines that a State program funded under 
this part is not participating during a fiscal year in the income and 
eligibility verification system required by section 1137, the Secretary 
shall reduce by 1 percent the amount of the grant that would (in the 
absence of this subsection, subsection (a)(1)(B) of this section, and 
section 404(c)(2)) be payable to the State under subsection (a)(1)(A) 
for the fiscal year.
    ``(f) Limitation on Federal Authority.--The Secretary may not 
regulate the conduct of States under this part or enforce any provision 
of this part, except to the extent expressly provided in this part.
    ``(g) Federal Rainy Day Fund.--
            ``(1) Establishment.--There is hereby established in the 
        Treasury of the United States a revolving loan fund which shall 
        be known as the `Federal Rainy Day Fund'.
            ``(2) Deposits into fund.--
                    ``(A) Appropriation.--Out of any money in the 
                Treasury of the United States not otherwise 
                appropriated, $1,000,000,000 are hereby appropriated 
                for fiscal year 1996 for payment to the Federal Rainy 
                Day Fund.
                    ``(B) Loan repayments.--The Secretary shall deposit 
                into the fund any principal or interest payment 
                received with respect to a loan made under this 
                subsection.
            ``(3) Availability.--Amounts in the fund are authorized to 
        remain available without fiscal year limitation for the purpose 
        of making loans and receiving payments of principal and 
        interest on such loans, in accordance with this subsection.
            ``(4) Use of fund.--
                    ``(A) Loans to qualified states.--
                            ``(i) In general.--The Secretary shall make 
                        loans from the fund to any qualified State for 
                        a period to maturity of not more than 3 years.
                            ``(ii) Rate of interest.--The Secretary 
                        shall charge and collect interest on any loan 
                        made under clause (i) at a rate equal to the 
                        current average market yield on outstanding 
                        marketable obligations of the United States 
                        with remaining periods to maturity comparable 
                        to the period to maturity of the loan.
                            ``(iii) Maximum loan.--The amount of any 
                        loan made to a State under clause (i) during a 
                        fiscal year shall not exceed the lesser of--
                                    ``(I) 50 percent of the amount of 
                                the grant payable to the State under 
                                this section for the fiscal year; or
                                    ``(II) $100,000,000.
                    ``(B) Qualified state defined.--A State is a 
                qualified State for purposes of subparagraph (A) if the 
                unemployment rate of the State (as determined by the 
                Bureau of Labor Statistics) for the most recent 3-month 
                period for which such information is available is--
                            ``(i) more than 6.5 percent; and
                            ``(ii) at least 110 percent of such rate 
                        for the corresponding 3-month period in either 
                        of the 2 immediately preceding calendar years.

``SEC. 404. MANDATORY WORK REQUIREMENTS.

    ``(a) Participation Rate Requirements.--
            ``(1) Requirement applicable to all families receiving 
        assistance.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 for a fiscal year shall achieve the 
                minimum participation rate specified in the following 
                table for the fiscal year with respect to all families 
                receiving assistance under the State program funded 
                under 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.  
                    ``(B) Pro rata reduction of participation rate due 
                to caseload reductions not required by federal law.--
                The minimum participation rate otherwise required by 
                subparagraph (A) for a fiscal year shall be reduced by 
                a percentage equal to the percentage (if any) by which 
                the number of families receiving assistance during the 
                fiscal year under the State program funded under this 
                part is less than the number of families that received 
                aid under the State plan approved under part A of this 
                title (as in effect before October 1, 1995) during the 
                fiscal year immediately preceding such effective date, 
                except to the extent that the Secretary determines that 
                the reduction in the number of families receiving such 
                assistance is required by Federal law.
                    ``(C) Participation rate.--For purposes of this 
                paragraph:
                            ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal year.
                            ``(ii) Monthly participation rates.--The 
                        participation rate of a State for a month is--
                                    ``(I) the number of families 
                                receiving cash assistance under the 
                                State program funded under this part 
                                which include an individual who is 
                                engaged in work activities for the 
                                month; divided by
                                    ``(II) the total number of families 
                                receiving cash assistance under the 
                                State program funded under this part 
                                during the month which include an 
                                individual who has attained 18 years of 
                                age.
                            ``(iii) Engaged.--A recipient is engaged in 
                        work activities for a month in a fiscal year if 
                        the recipient is making
                         progress in such activities for at least the 
minimum average number of hours per week specified in the following 
table during the month, not fewer than 20 hours per week of which are 
attributable to an activity described in subparagraph (A), (B), (C), or 
(D) of subsection (b)(1) (or, in the case of the first 4 weeks for 
which the recipient is required under this section to participate in 
work activities, an activity 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.  
            ``(2) Requirement applicable to 2-parent families.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 for a fiscal year shall achieve the 
                minimum participation rate specified in the following 
                table for the fiscal year with respect to 2-parent 
                families receiving assistance under the State program 
                funded under this part:
                    
                                                            The minimum
                    
                                                          participation
                    ``If the fiscal year is:
                                                               rate is:
                          1996.......................              50  
                          1997.......................              50  
                          1998 or thereafter.........             90.  
                    ``(B) Participation rate.--For purposes of this 
                paragraph:
                            ``(i) Average monthly rate.--The 
                        participation rate of a State for a fiscal year 
                        is the average of the participation rates of 
                        the State for each month in the fiscal year.
                            ``(ii) Monthly participation rates.--The 
                        participation rate of a State for a month is--
                                    ``(I) the number of 2-parent 
                                families receiving cash assistance 
                                under the State program funded under 
                                this part which include at least 1 
                                adult who is engaged in work activities 
                                for the month; divided by
                                    ``(II) the total number of 2-parent 
                                families receiving cash assistance 
                                under the State program funded under 
                                this part during the month.
                            ``(iii) Engaged.--An adult is engaged in 
                        work activities for a month in a fiscal year if 
                        the adult is making progress in such activities 
                        for at least 35 hours per week during the 
                        month, not fewer than 30 hours per week of 
                        which are attributable to an activity described 
                        in subparagraph (A), (B), (C), or (D) of 
                        subsection (b)(1) (or, in the case of the first 
                        4 weeks for which the recipient is required 
                        under this section to participate in work 
                        activities, an activity described in subsection 
                        (b)(1)(E)).
    ``(b) Definitions.--As used in this section:
            ``(1) Work activities.--The term `work activities' means--
                    ``(A) unsubsidized employment;
                    ``(B) subsidized private sector employment;
                    ``(C) subsidized public sector employment or work 
                experience (including work associated with the 
                refurbishing of publicly assisted housing) only if 
                sufficient private sector employment is not available;
                    ``(D) on-the-job training;
                    ``(E) job search and job readiness assistance;
                    ``(F) education directly related to employment, in 
                the case of a recipient who has not attained 20 years 
                of age, and has not received a high school diploma or a 
                certificate of high school equivalency;
                    ``(G) job skills training directly related to 
                employment; or
                    ``(H) at the option of the State, satisfactory 
                attendance at secondary school, in the case of a 
                recipient who--
                            ``(i) has not completed secondary school; 
                        and
                            ``(ii) is a dependent child, or a head of 
                        household who has not attained 20 years of age.
            ``(2) Fiscal year.--The term `fiscal year' means any 12-
        month period ending on September 30 of a calendar year.
    ``(c) Penalties.--
            ``(1) Against individuals.--
                    ``(A) Applicable to all families.--A State to which 
                a grant is made under section 403 shall ensure that the 
                amount of cash assistance paid under the State program 
                funded under this part to a recipient of assistance 
                under the program who refuses to engage (within the 
                meaning of subsection (a)(1)(C)(iii)) in work 
                activities required under this section shall
                be less than the amount of cash assistance that would 
                otherwise be paid to the recipient under the program, 
                subject to such good cause and other exceptions as the 
                State may establish.
                    ``(B) Applicable to 2-parent families.--A State to 
                which a grant is made under section 403 shall reduce 
                the amount of cash assistance otherwise payable to a 2-
                parent family for a month under the State program 
                funded under this part with respect to an adult in the 
                family who is not engaged (within the meaning of 
                subsection (a)(2)(B)(iii)) in work activities for at 
                least 35 hours per week during the month, pro rata (or 
                more, at the option of the State) with respect to any 
                period during the month for which the adult is not so 
                engaged.
                    ``(C) Limitation on federal authority.--No officer 
                or employee of the Federal Government may regulate the 
                conduct of States under this paragraph or enforce this 
                paragraph against any State.
            ``(2) Against states.--
                    ``(A) In general.--If the Secretary determines that 
                a State to which a grant is made under section 403 for 
                a fiscal year has failed to comply with subsection (a) 
                for the fiscal year, the Secretary shall reduce by not 
                more than 5 percent the amount of the grant that would 
                (in the absence of this paragraph and subsections 
                (a)(1)(B) and (e) of section 403) be payable to the 
                State under section 403(a)(1)(A) for the immediately 
                succeeding fiscal year.
                    ``(B) Penalty based on severity of failure.--The 
                Secretary shall impose reductions under subparagraph 
                (A) based on the degree of noncompliance.
    ``(d) Rule of Interpretation.--This section shall not be construed 
to prohibit a State from offering recipients of assistance under the 
State program funded under this part an opportunity to participate in 
an education or training program, consistent with the requirements of 
this section.
    ``(e) Research.--The Secretary shall conduct research on the costs 
and benefits of State activities under this section.
    ``(f) Evaluation of Innovative Approaches to Employing Recipients 
of Assistance.--The Secretary shall evaluate innovative approaches to 
employing recipients of assistance under State programs funded under 
this part.
    ``(g) Annual Ranking of States and Review of Most and Least 
Successful Work Programs.--
            ``(1) Annual ranking of states.--The Secretary shall rank 
        the States to which grants are paid under section 403 in the 
        order of their success in moving recipients of assistance under 
        the State program funded under this part into long-term private 
        sector jobs.
            ``(2) Annual review of most and least successful work 
        programs.--The Secretary shall review the programs of the 3 
        States most recently ranked highest under paragraph (1) and the 
        3 States most recently ranked lowest under paragraph (1) that 
        provide parents with work experience, assistance in finding 
        employment, and other work preparation activities and support 
        services to enable the families of such parents to leave the 
        program and become self-sufficient.
    ``(h) Sense of the Congress.--In complying with this section, each 
State that operates a program funded under this part is encouraged to 
assign the highest priority to requiring families that include older 
preschool or school-age children to be engaged in work activities.
    ``(i) Sense of the Congress That States Should Impose Certain 
Requirements on Noncustodial, Nonsupporting Minor Parents.--It is the 
sense of the Congress that the States should require noncustodial, 
nonsupporting parents who have not attained 18 years of age to fulfill 
community work obligations and attend appropriate parenting or money 
management classes after school.

``SEC. 405. PROHIBITIONS.

    ``(a) In General.--
            ``(1) No assistance for families without a minor child.--A 
        State to which a grant is made under section 403 may not use 
        any part of the grant to provide assistance to a family, unless 
        the family includes a minor child.
            ``(2) Certain payments not to be disregarded in determining 
        the amount of assistance to be provided to a family.--
                    ``(A) Income security payments.--If a State to 
                which a grant is made under section 403 uses any part 
                of the grant to provide assistance for any individual 
                who is receiving a payment under a State plan for old-
                age assistance approved under section 2, a State 
                program funded under part B that provides cash payments 
                for foster care, or the supplemental security income 
                program under title XVI (other than service benefits 
                provided through the use of a grant made under part C 
                of such title), then the State may not disregard the 
                payment in determining the amount of assistance to be 
                provided to the family of which the individual is a 
                member under the State program funded under this part.
                    ``(B) Certain support payments.--A State to which a 
                grant is made under section 403 may not disregard an 
                amount distributed to a family under section 
                457(a)(1)(A) in determining the income of the family 
                for purposes of eligibility for assistance under the 
                State program funded under this part.
            ``(3) No assistance for certain aliens.--Notwithstanding 
        section 403(c)(1), a State to which a grant is made under 
        section 403 may not use any part of the grant to provide 
        assistance for an individual who is not a citizen or national 
        of the United States, except consistent with subtitle D of the 
        Personal Responsibility Act of 1995.
            ``(4) No assistance for out-of-wedlock births to minors.--
                    ``(A) General rule.--A State to which a grant is 
                made under section 403 may not use any part of the 
                grant to provide cash benefits for a child born out-of-
                wedlock to an individual who has not attained 18 years 
                of age, or for the individual, until the individual 
                attains such age.
                    ``(B) Exception for rape or incest.--Subparagraph 
                (A) shall not apply with respect to a child who is born 
                as a result of rape or incest.
                    ``(C) State option.--Nothing in subparagraph (A) 
                shall be construed to prohibit a State from using funds 
                provided by section 403 from providing aid in the form 
                of vouchers that may be used only to pay for particular 
                goods and services specified by the State as suitable 
                for the care of the child such as diapers, clothing, 
                and school supplies.
            ``(5) No additional cash assistance for children born to 
        families receiving assistance.--
                    ``(A) General rule.--A State to which a grant is 
                made under section 403 may not use
                 any part of the grant to provide cash benefits for a 
minor child who is born to--
                            ``(i) a recipient of benefits under the 
                        program operated under this part; or
                            ``(ii) a person who received such benefits 
                        at any time during the 10-month period ending 
                        with the birth of the child.
                    ``(B) Exception for vouchers.--Subparagraph (A) 
                shall not apply to vouchers which are provided in lieu 
                of cash benefits and which may be used only to pay for 
                particular goods and services specified by the State as 
                suitable for the care of the child involved.
                    ``(C) Exception for rape or incest.--Subparagraph 
                (A) shall not apply with respect to a child who is born 
                as a result of rape or incest.
            ``(6) No assistance for more than 5 years.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 may not use any part of the grant to 
                provide cash benefits for the family of an individual 
                who, after attaining 18 years of age, has received 
                benefits under the program operated under this part for 
                60 months (whether or not consecutive) after the 
                effective date of this part, except as provided under 
                subparagraph (B).
                    ``(B) Hardship exception.--
                            ``(i) In general.--The State may exempt a 
                        family from the application of subparagraph (A) 
                        by reason of hardship.
                            ``(ii) Limitation.--The number of families 
                        with respect to which an exemption made by a 
                        State under clause (i) is in effect shall not 
                        exceed 10 percent of the number of families to 
                        which the State is providing assistance under 
                        the program operated under this part.
            ``(7) No assistance for families not cooperating in 
        paternity establishment or child support.--Notwithstanding 
        section 403(c)(1), a State to which a grant is made under 
        section 403 may not use any part of the grant to provide 
        assistance to a family that includes an individual whom the 
        agency responsible for administering the State plan approved 
        under part D determines is not cooperating with the State in 
        establishing the paternity of any child of the individual, or 
        in establishing, modifying, or enforcing a support order with 
        respect to such a child.
            ``(8) No assistance for families not assigning support 
        rights to the state.--Notwithstanding section 403(c)(1), a 
        State to which a grant is made under section 403 may not use 
        any part of the grant to provide assistance to a family that 
        includes an individual who has not assigned to the State any 
        rights the individual may have (on behalf of the individual or 
        of any other person for whom the individual has applied for or 
        is receiving such assistance) to support from any other person 
        for any period for which the individual receives such 
        assistance.
            ``(9) Withholding of portion of assistance for families 
        which include a child whose paternity is not established.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 may not fail to--
                            ``(i) withhold assistance under the State 
                        program funded under this part from a family 
                        which includes a child whose paternity is not 
                        established, in an amount equal to $50 or 15 
                        percent of the amount of the amount of the 
                        assistance that would (in the absence of this 
                        paragraph) be provided to the family with 
                        respect to the child, whichever the State 
                        elects; or
                            ``(ii) provide to the family the total 
                        amount of assistance so withheld once the 
                        paternity of the child is established, if the 
                        family is then eligible for such assistance.
            ``(B) Exception for rape or incest.--Subparagraph (A) shall 
        not apply with respect to a child who is born as a result of 
        rape or incest.
            ``(10) Denial of assistance for 10 years to a person found 
        to have fraudulently misrepresented residence in order to 
        obtain benefits in 2 or more states.--An individual shall not 
        be considered an eligible individual for the purposes of this 
        title during the 10-year period that begins with the date the 
        individual is found by a State to have made, or is convicted in 
        Federal or State court of having made a fraudulent statement or 
        representation with respect to the place of residence of the 
        person in order to receive benefits or services simultaneously 
        from 2 or more States under programs that are funded under this 
        part, title XIX, the consolidated program of food assistance 
        under chapter 2 of subtitle E of title XIV of the Personal 
        Responsibility Act of 1995, or the Food Stamp Act of 1977 (as 
        in effect before the effective date of such chapter), or 
        benefits in 2 or more States under the supplemental security 
        income program under title XVI.
            ``(11) Denial of assistance for fugitive felons and 
        probation and parole violators.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 may not use any part of the grant to 
                provide assistance to any individual who is--
                            ``(i) fleeing to avoid prosecution, or 
                        custody or confinement after conviction, under 
                        the laws of the place from which the individual 
                        flees, for a crime, or an attempt to commit a 
                        crime, which is a felony under the laws of the 
                        place from which the individual flees, or 
                        which, in the case of the State of New Jersey, 
                        is a high misdemeanor under the laws of such 
                        State; or
                            ``(ii) violating a condition of probation 
                        or parole imposed under Federal or State law.
                    ``(B) Exchange of information with law enforcement 
                agencies.--If a State to which a grant is made under 
                section 403 establishes safeguards against the use or 
                disclosure of information about applicants or 
                recipients of assistance under the State program funded 
                under this part, the safeguards shall not prevent the 
                State agency administering the program from furnishing 
                a Federal, State, or local law enforcement officer, 
                upon the request of the officer, with the current 
                address of any recipient if the officer furnishes the 
                agency with the name of the recipient and notifies the 
                agency that--
                            (i) such recipient--
                                    (I) is fleeing to avoid 
                                prosecution, or custody or confinement 
                                after conviction, under the laws of the 
                                place from which the recipient flees, 
                                for a crime, or an attempt to commit a 
                                crime, which is a felony under the laws 
                                of the place from which the recipient 
                                flees, or which, in the case of the 
                                State of New Jersey, is a high 
                                misdemeanor under the laws of such 
                                State;
                                    (II) is violating a condition of 
                                probation or parole imposed under 
                                Federal or State law; or
                                    (III) has information that is 
                                necessary for the officer to conduct 
                                the official duties of the officer; and
                            (ii) the location or apprehension of the 
                        recipient is within such official duties.
            ``(12) Denial of assistance for minor children who are 
        absent from the home for a significant period.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 may not use any part of the grant to 
                provide assistance for a minor child who has been, or 
                is expected by a parent (or other caretaker relative) 
                of the child to be, absent from the home for a period 
                of 45 consecutive days or, at the option of the State, 
                such period of not less than 30 and not more than 90 
                consecutive days as the State may provide for in the 
                State plan submitted pursuant to section 402.
                    ``(B) State authority to establish good cause 
                exceptions.--The State may establish such good cause 
                exceptions to subparagraph (A) as the State considers 
                appropriate if such exceptions are provided for in the 
                State plan submitted pursuant to section 402.
                    ``(C) Denial of assistance for relative who fails 
                to notify state agency of absence of child.--A State to 
                which a grant is made under section 403 may not use any 
                part of the grant to provide assistance for an 
                individual who is a parent (or other caretaker 
                relative) of a minor child and who fails to notify the 
                agency administering the State program funded under 
                this part, of the absence of the minor child from the 
                home for the period specified in or provided for under 
                subparagraph (A), by the end of the 5-day period that 
                begins with the date that it becomes clear to the 
                parent (or relative) that the minor child will be 
                absent for such period so specified or provided for.
    ``(b) Minor Child Defined.--As used in subsection (a), the term 
`minor child' means an individual--
            ``(1) who has not attained 18 years of age; or
            ``(2) who--
                    ``(A) has not attained 19 years of age; and
                    ``(B) is a full-time student in a secondary school 
                (or in the equivalent level of vocational or technical 
                training).

``SEC. 406. DATA COLLECTION AND REPORTING.

    ``(a) In General.--Each State to which a grant is made under 
section 403 for a fiscal year shall, not later than 6 months after the 
end of the fiscal year, transmit to the Secretary the following 
aggregate information on families to which assistance was provided 
during the fiscal year under the State program operated under this part 
or an equivalent State program:
            ``(1) The number of adults receiving such assistance.
            ``(2) The number of children receiving such assistance and 
        the average age of the children.
            ``(3) The employment status of such adults, and the average 
        earnings of employed adults receiving such assistance.
            ``(4) The number of 1-parent families in which the parent 
        is a widow or widower, is divorced, is separated, or has never 
        married.
            ``(5) The age, race, and educational attainment of the 
        adults receiving such assistance.
            ``(6) The average assistance provided to the families under 
        the program.
            ``(7) Whether, at the time of application for assistance 
        under the program, the families or any member of the families 
        receives benefits under any of the following:
                    ``(A) Any housing program.
                    ``(B) The consolidated program of food assistance 
                under chapter 2 of subtitle E of title XIV of the 
                Personal Responsibility Act of 1995.
                    ``(C) The Head Start programs carried out under the 
                Head Start Act.
                    ``(D) Any job training program.
            ``(8) The number of months, since the most recent 
        application for assistance under the program, for which such 
        assistance has been provided to the families.
            ``(9) The total number of months for which assistance has 
        been provided to the families under the program.
            ``(10) Any other data necessary to indicate whether the 
        State is in compliance with the plan most recently submitted by 
        the State pursuant to section 402.
            ``(11) The components of any program carried out by the 
        State to provide employment and training activities in order to 
        comply with section 404, and the average monthly number of 
        adults in each such component.
            ``(12) The number of part-time job placements and the 
        number of full-time job placements made through the program 
        referred to in paragraph (11), the number of cases with reduced 
        assistance, and the number of cases closed due to employment.
    ``(b) Authority of States to Use Estimates.--A State may comply 
with the requirement to provide precise numerical information described 
in subsection (a) by submitting an estimate which is obtained through 
the use of scientifically acceptable sampling methods.
    ``(c) Report on Use of Federal Funds to Cover Administrative Costs 
and Overhead.--The report required by subsection (a) for a fiscal year 
shall include a statement of the percentage of the funds paid to the 
State under this part for the fiscal year that are used to cover 
administrative costs or overhead.
    ``(d) Report on State Expenditures on Programs for Needy 
Families.--The report required by subsection (a) for a fiscal year 
shall include a statement of the total amount expended by the State 
during the fiscal year on programs for needy families.
    ``(e) Report on Noncustodial Parents Participating in Work 
Activities.--The report required by subsection (a) for a fiscal year 
shall include the number of noncustodial parents in the State who 
participated in work activities (as defined in section 404(b)(1)) 
during the fiscal year.
``SEC. 407. RESEARCH, EVALUATIONS, AND NATIONAL STUDIES.

    ``(a) Research.--The Secretary may conduct research on the effects, 
costs, and benefits of State programs funded under this part.
    ``(b) Development and Evaluation of Innovative Approaches to 
Employing Welfare Recipients.--The Secretary may assist States in 
developing, and shall evaluate, innovative approaches to employing 
recipients of cash assistance under programs funded under this part. In 
performing such evaluations, the Secretary shall, to the maximum extent 
feasible, use random assignment to experimental and control groups.
    ``(c) Studies of Welfare Caseloads.--The Secretary may conduct 
studies of the caseloads of States operating programs funded under this 
part.
    ``(d) Dissemination of Information.--The Secretary shall develop 
innovative methods of disseminating information on any research, 
evaluations, and studies conducted under this section, including the 
facilitation of the sharing of information and best practices among 
States and localities through the use of computers and other 
technologies.

``SEC. 408. STUDY BY THE CENSUS BUREAU.

    ``(a) In General.--The Bureau of the Census shall expand the Survey 
of Income and Program Participation as necessary to obtain such 
information as will enable interested persons to evaluate the impact of 
the amendments made by subtitle A of the Personal Responsibility Act of 
1995 on a random national sample of recipients of assistance under 
State programs funded under this part and (as appropriate) other low 
income families, and in doing so, shall pay particular attention to the 
issues of out-of-wedlock birth, welfare dependency, the beginning and 
end of welfare spells, and the causes of repeat welfare spells.
    ``(b) Appropriation.--Out of any money in the Treasury of the 
United States not otherwise appropriated, the Secretary of the Treasury 
shall pay to the Bureau of the Census $10,000,000 for each of fiscal 
years 1996, 1997, 1998, 1999, and 2000 to carry out subsection (a).''.

SEC. 14102. REPORT ON DATA PROCESSING.

    (a) In General.--Within 6 months after the date of the enactment of 
this Act, the Secretary of Health and Human Services shall prepare and 
submit to the Congress a report on--
            (1) the status of the automated data processing systems 
        operated by the States to assist management in the 
        administration of State programs under part A of title IV of 
        the Social Security Act (whether in effect before or after 
        October 1, 1995); and
            (2) what would be required to establish a system capable 
        of--
                    (A) tracking participants in public programs over 
                time; and
                    (B) checking case records of the States to 
                determine whether individuals are participating in 
                public programs of 2 or more States.
    (b) Preferred Contents.--The report required by subsection (a) 
should include--
            (1) a plan for building on the automated data processing 
        systems of the States to establish a system with the 
        capabilities described in subsection (a)(2); and
            (2) an estimate of the amount of time required to establish 
        such a system and of the cost of establishing such a system.

SEC. 14103. TRANSFERS.

    (a) Child Support Review Penalties.--
            (1) Transfer of provision.--Section 403 of the Social 
        Security Act, as added by the amendment made by section 14101 
        of this Act, is amended by adding at the end subsection (h) of 
        section 403, as in effect immediately before the effective date 
        of this subtitle.
            (2) Conforming amendment.--Section 403(h)(3) of such Act, 
        as in effect pursuant to paragraph (1) of this subsection, is 
        amended by striking ``, section 402(a)(27),''.
    (b) Assistant Secretary for Family Support.--
            (1) Redesignation of provision.--Section 417 of such Act 
        (42 U.S.C. 617), as in effect immediately before the effective 
        date of this subtitle, is amended by striking the following:

                ``assistant secretary for family support

    ``Sec. 417.''
        and inserting the following:

``SEC. 409. ASSISTANT SECRETARY FOR FAMILY SUPPORT.''.

            (2) Transfer of provision.--Part A of title IV of such Act, 
        as added by the amendment made by section 14101 of this Act, is 
        amended by adding at the end the section amended by paragraph 
        (1) of this subsection.
            (3) Conforming amendment.--Section 409 of such Act, as 
        added by paragraph (2) of this subsection is amended by 
        striking ``, part D, and part F'' and inserting ``and part D''.

SEC. 14104. CONFORMING AMENDMENTS TO THE SOCIAL SECURITY ACT.

    (a) Amendments to Title II.--
            (1) Section 205(c)(2)(C)(vi) of the Social Security Act (42 
        U.S.C. 405(c)(2)(C)(vi)), as so redesignated by section 
        321(a)(9)(B) of the Social Security Independence and Program 
        Improvements Act of 1994, is amended--
                    (A) by inserting ``an agency administering a 
                program funded under part A of title IV or'' before 
                ``an agency operating''; and
                    (B) by striking ``A or D of title IV of this Act'' 
                and inserting ``D of such title''.
            (2) Section 228(d)(1) of such Act (42 U.S.C. 428(d)(1)) is 
        amended by inserting ``under a State program funded under'' 
        before ``part A of title IV''.
    (b) Amendments to Part D of Title IV.--
            (1) Section 451 of such Act (42 U.S.C. 651) is amended by 
        striking ``aid'' and inserting ``assistance under a State 
        program funded''.
            (2) Section 452(a)(10)(C) of such Act (42 U.S.C. 
        652(a)(10)(C)) is amended--
                    (A) by striking ``aid to families with dependent 
                children'' and inserting ``assistance under a State 
                program funded under part A''; and
                    (B) by striking ``such aid'' and inserting ``such 
                assistance''; and
                    (C) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 405(a)(8)''.
            (3) Section 452(a)(10)(F) of such Act (42 U.S.C. 
        652(a)(10)(F)) is amended--
                    (A) by striking ``aid under a State plan approved'' 
                and inserting ``assistance under a State program 
                funded''; and
                    (B) by striking ``in accordance with the standards 
                referred to in section 402(a)(26)(B)(ii)'' and 
                inserting ``by the State''.
            (4) Section 452(b) of such Act (42 U.S.C. 652(b)) is 
        amended in the last sentence by striking ``plan approved under 
        part A'' and inserting ``program funded under part A''.
            (5) Section 452(d)(3)(B)(i) of such Act (42 U.S.C. 
        652(d)(3)(B)(i)) is amended by striking ``1115(c)'' and 
        inserting ``1115(b)''.
            (6) Section 452(g)(2)(A)(ii)(I) of such Act (42 U.S.C. 
        652(g)(2)(A)(ii)(I)) is amended by striking ``aid is being paid 
        under the State's plan approved'' and inserting ``assistance is 
        being provided under the State program funded under''.
            (7) Section 452(g)(2)(A) of such Act (42 U.S.C. 
        652(g)(2)(A)) is amended in the matter following clause (iii) 
        by striking ``aid was being paid under the State's plan 
        approved'' and inserting ``assistance was being provided under 
        the State program funded''.
            (8) Section 452(g)(2) of such Act (42 U.S.C. 652(g)(2)) is 
        amended in the matter following subparagraph (B)--
                    (A) by striking ``who is a dependent child by 
                reason of the death of a parent'' and inserting ``with 
                respect to whom assistance is being provided under the 
                State program funded under part A''; and
                    (B) by inserting ``by the State agency 
                administering the State plan approved under this part'' 
                after ``found'';
                    (C) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 405(a)(8)''; and
                    (D) by striking ``administering the plan under part 
                E determines (as provided in section 454(4)(B))'' and 
                inserting ``determines''.
            (9) Section 452(h) of such Act (42 U.S.C. 652(h)) is 
        amended by striking ``under section 402(a)(26)'' and inserting 
        ``pursuant to section 405(a)(8)''.
            (10) Section 454(5) of such Act (42 U.S.C. 654(5)) is 
        amended--
                    (A) by striking ``under section 402(a)(26)'' and 
                inserting ``pursuant to section 405(a)(8)''; and
                    (B) by striking ``except that this paragraph shall 
                not apply to such payments for any month following the 
                first month in which the amount collected is sufficient 
                to make such family ineligible for assistance under the 
                State plan approved under part A;''.
            (11) Section 454(6)(D) of such Act (42 U.S.C. 654(6)(D)) is 
        amended by striking ``aid under a State plan approved'' and 
        inserting ``assistance under a State program funded''.
            (12) Section 456 of such Act (42 U.S.C. 656) is amended by 
        striking ``under section 402(a)(26)'' each place such term 
        appears and inserting ``pursuant to section 405(a)(8)''.
            (13) Section 466(a)(3)(B) of such Act (42 U.S.C. 
        666(a)(3)(B)) is amended by striking ``402(a)(26)'' and 
        inserting ``405(a)(8)''.
            (14) Section 466(b)(2) of such Act (42 U.S.C. 666(b)(2)) is 
        amended by striking ``aid'' and inserting ``assistance under a 
        State program funded''.
    (c) Repeal of Part F of Title IV.--Part F of title IV of such Act 
(42 U.S.C. 681-687) is hereby repealed.
    (d) Amendment to Title X.--Section 1002(a)(7) of such Act (42 
U.S.C. 1202(a)(7)) is amended by striking ``aid to families with 
dependent children under the State plan approved under section 402 of 
this Act'' and inserting ``assistance under a State program funded 
under part A of title IV''.
    (e) Amendments to Title XI.--
            (1) Section 1108 of such Act (42 U.S.C. 1308) is amended--
                    (A) by striking subsections (a), (b), (d), and (e); 
                and
                    (B) by striking ``(c)''.
            (2) Section 1109 of such Act (42 U.S.C. 1309) is amended by 
        striking ``or part A of title IV,''.
            (3) Section 1115(a) of such Act (42 U.S.C. 1315(a)) is 
        amended--
                    (A) in the matter preceding paragraph (1), by 
                striking ``A or'';
                    (B) in paragraph (1), by striking ``402,''; and
                    (C) in paragraph (2), by striking ``403,''.
            (4) Section 1116 of such Act (42 U.S.C. 1316) is amended--
                    (A) in each of subsections (a)(1), (b), and (d), by 
                striking ``or part A of title IV,''; and
                    (B) in subsection (a)(3), by striking ``404,''.
            (5) Section 1118 of such Act (42 U.S.C. 1318) is amended--
                    (A) by striking ``403(a),'';
                    (B) by striking ``and part A of title IV,''; and
                    (C) by striking ``, and shall, in the case of 
                American Samoa, mean 75 per centum with respect to part 
                A of title IV''.
            (6) Section 1119 of such Act (42 U.S.C. 1319) is amended--
                    (A) by striking ``or part A of title IV''; and
                    (B) by striking ``403(a),''.
            (7) Section 1133(a) of such Act (42 U.S.C. 1320b-3(a)) is 
        amended by striking ``or part A of title IV,''.
            (8) Section 1136 of such Act (42 U.S.C. 1320b-6) is hereby 
        repealed.
            (9) Section 1137 of such Act (42 U.S.C. 1320b-7) is 
        amended--
                    (A) in subsection (b), by striking paragraph (1) 
                and inserting the following:
            ``(1) any State program funded under part A of title IV of 
        this Act;''; and
                    (B) in subsection (d)(1)(B)--
                            (i) by striking ``In this subsection--'' 
                        and all that follows through ``(ii) in'' and 
                        inserting ``In this subsection, in''; and
                            (ii) by redesignating subclauses (I), (II), 
                        and (III) as clauses (i), (ii), and (iii); and
                            (iii) by moving such redesignated material 
                        2 ems to the left.
    (f) Amendment to Title XIV.--Section 1402(a)(7) of such Act (42 
U.S.C. 1352(a)(7)) is amended by striking ``aid to families with 
dependent children under the State plan approved under section 402 of 
this Act'' and inserting ``assistance under a State program funded 
under part A of title IV''.
    (g) Amendment to Title XVI as in Effect With Respect to the 
Territories.--Section 1602(a)(11) of such Act, as in effect without 
regard to the amendment made by section 301 of the Social Security 
Amendments of 1972, (42 U.S.C. 1382 note) is amended by striking ``aid 
under the State plan approved'' and inserting ``assistance under a 
State program funded''.
    (h) Amendment to Title XVI as in Effect With Respect to the 
States.--Section 1611(c)(5)(A) of such Act (42 U.S.C. 1382(c)(5)(A)) is 
amended to read as follows: ``(A) a State program funded under part A 
of title IV,''.

SEC. 14105. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) Subsection (b) of section 508 of the Unemployment Compensation 
Amendments of 1976 (42 U.S.C. 603a) is amended to read as follows:
    ``(b) Provision for Reimbursement of Expenses.--For purposes of 
section 455 of the Social Security Act, expenses incurred to reimburse 
State employment offices for furnishing information requested of such 
offices--
            ``(1) pursuant to the third sentence of section 3(a) of the 
        Act entitled `An Act to provide for the establishment of a 
        national employment system and for cooperation with the States 
        in the promotion of such system, and for other purposes', 
        approved June 6, 1933 (29 U.S.C. 49b(a)),
            ``(2) by a State or local agency charged with the duty of 
        carrying a State plan for child support approved under part D 
        of title IV of the Social Security Act,
shall be considered to constitute expenses incurred in the 
administration of such State plan.''.
    (b) Paragraph (9) of section 51(d) of the Internal Revenue Code of 
1986 is amended by striking all that follows ``agency as'' and 
inserting ``being eligible for financial assistance under part A of 
title IV of the Social Security Act and as having continually received 
such financial assistance during the 90-day period which immediately 
precedes the date on which such individual is hired by the employer.''
    (c) Section 9121 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is hereby repealed.
    (d) Section 9122 of the Omnibus Budget Reconciliation Act of 1987 
(42 U.S.C. 602 note) is hereby repealed.
    (e) Section 221 of the Housing and Urban-Rural Recovery Act of 1983 
(42 U.S.C. 602 note), relating to treatment under AFDC of certain 
rental payments for federally assisted housing, is hereby repealed.
    (f) Section 159 of the Tax Equity and Fiscal Responsibility Act of 
1982 (42 U.S.C. 602 note) is hereby repealed.
    (g) Section 202(d) of the Social Security Amendments of 1967 (81 
Stat. 882; 42 U.S.C. 602 note) is hereby repealed.
    (h) Section 233 of the Social Security Act Amendments of 1994 (42 
U.S.C. 602 note) is hereby repealed.
    (i) Section 903 of the Stewart B. McKinney Homeless Assistance 
Amendments Act of 1988 (42 U.S.C. 11381 note), relating to 
demonstration projects to reduce number of AFDC families in welfare 
hotels, is amended--
            (1) in subsection (a), by striking ``aid to families with 
        dependent children under a State plan approved'' and inserting 
        ``assistance under a State program funded''; and
            (2) in subsection (c), by striking ``aid to families with 
        dependent children in the State under a State plan approved'' 
        and inserting ``assistance in the State under a State program 
        funded''.
SEC. 14106. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER MEDICAID 
              PROGRAM.

    (a) In General.--Title XIX of the Social Security Act is amended--
            (1) in section 1931, by inserting ``subject to section 
        1931(a),'' after ``under this title,'' and by redesignating 
        such section as section 1932; and
            (2) by inserting after section 1930 the following new 
        section:

               ``continued application of afdc standards

    ``Sec. 1931. (a) For purposes of applying this title on and after 
October 1, 1995, with respect to a State--
            ``(1) except as provided in paragraph (2), any reference in 
        this title (or other provision of law in relation to the 
        operation of this title) to a provision of part A of title IV 
        of this Act, or a State plan under such part, shall be 
        considered a reference to such provision or plan as in effect 
        as of March 7, 1995, with respect to the State and eligibility 
        for medical assistance under this title shall be determined as 
        if such provision or plan (as in effect as of such date) had 
        remained in effect on and after October 1, 1995; and
            ``(2) any reference in section 1902(a)(5) or 1902(a)(55) to 
        a State plan approved under part A of title IV shall be deemed 
        a reference to a State program funded under such part (as in 
        effect on and after October 1, 1995).
    ``(b) In the case of a waiver of a provision of part A of title IV 
in effect with respect to a State as of March 7, 1995, if the waiver 
affects eligibility of individuals for medical assistance under this 
title, such waiver may continue to be applied, at the option of the 
State, in relation to this title after the date the waiver would 
otherwise expire.''
    (b) Plan Amendment.--Section 1902(a) of such Act (42 U.S.C. 
1396a(a)) is amended--
            (1) by striking ``and'' at the end of paragraph (61),
            (2) by striking the period at the end of paragraph (62) and 
        inserting ``; and'', and
            (3) by inserting after paragraph (62) the following new 
        paragraph:
            ``(63) provide for continuing to administer eligibility 
        standards with respect to individuals who are (or seek to be) 
        eligible for medical assistance based on the application of 
        section 1931.''.
    (c) Conforming Amendments.--(1) Section 1902(c) of such Act (42 
U.S.C. 1396a(c)) is amended by striking ``if--'' and all that follows 
and inserting the following: ``if the State requires individuals 
described in subsection (l)(1) to apply for assistance under the State 
program funded under part A of title IV as a condition of applying for 
or receiving medical assistance under this title.''.
    (2) Section 1903(i) of such Act (42 U.S.C. 1396b(i)) is amended by 
striking paragraph (9).
    (d) Effective Date.--The amendments made by this section shall 
apply to medical assistance furnished for calendar quarters beginning 
on or after October 1, 1995.

SEC. 14107. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this subtitle, 
this subtitle and the amendments made by this subtitle shall take 
effect on October 1, 1995.
    (b) Delayed Applicability of Authority To Temporarily Reduce 
Assistance for Certain Families Which Include a Child Whose Paternity 
Is Not Established.--Section 405(a)(9) of the Social Security Act, as 
added by the amendment made by section 14101 of this Act, shall not 
apply to individuals who, immediately before the effective date of this 
subtitle, are recipients of aid under a State plan approved under part 
A of title IV of the Social Security Act, until the end of the 1-year 
(or, at the option of the State, 2-year) period that begins with such 
effective date.
    (c) Transition Rule.--The amendments made by this subtitle shall 
not apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to aid or services provided before 
        the effective date of this subtitle under the provisions 
        amended; and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such provisions.
            Subtitle B--Child Protection Block Grant Program

SEC. 14201. ESTABLISHMENT OF PROGRAM.

    Part B of title IV of the Social Security Act (42 U.S.C. 620-635) 
is amended to read as follows:

    ``PART B--BLOCK GRANTS TO STATES FOR THE PROTECTION OF CHILDREN

``SEC. 421. PURPOSE.

    ``The purpose of this part is to enable eligible States to carry 
out a child protection program to--
            ``(1) identify and assist families at risk of abusing or 
        neglecting their children;
            ``(2) operate a system for receiving reports of abuse or 
        neglect of children;
            ``(3) investigate families reported to abuse or neglect 
        their children;
            ``(4) provide support, treatment, and family preservation 
        services to families which are, or are at risk of, abusing or 
        neglecting their children;
            ``(5) support children who must be removed from or who 
        cannot live with their families;
            ``(6) make timely decisions about permanent living 
        arrangements for children who must be removed from or who 
        cannot live with their families; and
            ``(7) provide for continuing evaluation and improvement of 
        child protection laws, regulations, and services.

``SEC. 422. ELIGIBLE STATES.

    ``(a) In General.--As used in this part, the term `eligible State' 
means, with respect to a fiscal year, a State that, during the 3-year 
period immediately preceding the fiscal year, has submitted to the 
Secretary a plan that includes the following:
            ``(1) Outline of child protection program.--A written 
        document that outlines the activities the State intends to 
        conduct to achieve the purpose of this part, including the 
        procedures to be used for--
                    ``(A) receiving reports of child abuse or neglect;
                    ``(B) investigating such reports;
                    ``(C) protecting children in families in which 
                child abuse or neglect is found to have occurred;
                    ``(D) removing children from dangerous settings;
                    ``(E) protecting children in foster care;
                    ``(F) promoting timely adoptions;
                    ``(G) protecting the rights of families, using 
                adult relatives as the preferred placement for children 
                separated from their parents if such relatives meet all 
                State child protection standards;
                    ``(H) preventing child abuse and neglect; and
                    ``(I) establishing and responding to citizen review 
                panels under section 425.
            ``(2) Certification of state law requiring the reporting of 
        child abuse and neglect.--A certification that the State has in 
        effect laws that require public officials and other 
        professionals to report actual or suspected instances of child 
        abuse or neglect.
            ``(3) Certification of state program to investigate child 
        abuse and neglect cases.--A certification that the State has in 
        effect a program to investigate child abuse and neglect cases.
            ``(4) Certification of state procedures for removal and 
        placement of abused or neglected children.--A certification 
        that the State has in effect procedures for removal from 
        families and placement of abused or neglected children.
            ``(5) Certification of state procedures for developing and 
        reviewing written plans for permanent placement of removed 
        children.--A certification that the State has in effect 
        procedures for ensuring that a written plan is prepared for 
        children who have been removed from their families, which 
        specifies the goal for achieving a permanent placement for the 
        child in a timely fashion, for ensuring that the written plan 
        is reviewed every 6 months, and for ensuring that information 
        about such children is collected regularly and recorded in case 
        records, and a description of such procedures.
            ``(6) Certification that the state will continue to honor 
        adoption assistance agreements.--A certification that the State 
        will honor any adoption assistance agreement (as defined in 
        section 475(3), as in effect immediately before the effective 
        date of this part) entered into by an agency of the State, that 
        is in effect as of such effective date.
            ``(7) Certification of state program to provide independent 
        living services.--A certification that the State has in effect 
        a program to provide independent living services to individuals 
        in the child protection program of the State who have attained 
        16 years of age but have not attained 20 (or, at the option of 
        the State, 22) years of age, and who do not have a family to 
        which to be returned for assistance in making the transition to 
        self-sufficient adulthood.
            ``(8) Certification of state procedures to respond to 
        reporting of medical neglect of disabled infants.--
                    ``(A) In general.--A certification that the State 
                has in place for the purpose of responding to the 
                reporting of medical neglect of infants (including 
                instances of withholding of medically indicated 
                treatment from disabled infants with life-threatening 
                conditions), procedures or programs, or both (within 
                the State child protective services system), to provide 
                for--
                            ``(i) coordination and consultation with 
                        individuals designated by and within 
                        appropriate health-care facilities;
                            ``(ii) prompt notification by individuals 
                        designated by and within appropriate health-
                        care facilities of cases of suspected medical 
                        neglect (including instances of withholding of 
                        medically indicated treatment from disabled 
                        infants with life-threatening conditions); and
                            ``(iii) authority, under State law, for the 
                        State child protective service to pursue any 
                        legal remedies, including the authority to 
                        initiate legal proceedings in a court of 
                        competent jurisdiction, as may be necessary to 
                        prevent the withholding of medically indicated 
                        treatment from disabled infants with life-
                        threatening conditions.
                    ``(B) Withholding of medically indicated 
                treatment.--As used in subparagraph (A), the term 
                `withholding of medically indicated treatment' means 
                the failure to respond to the infant's life-threatening 
                conditions by providing treatment (including 
                appropriate nutrition, hydration, and medication) 
                which, in the treating physician's or physicians' 
                reasonable medical judgment, will be most likely to be 
                effective in ameliorating or correcting all such 
                conditions, except that such term does not include the 
                failure to provide treatment (other than appropriate 
                nutrition, hydration, or medication) to an infant when, 
                in the treating physician's or physicians' reasonable 
                medical judgment--
                            ``(i) the infant is chronically and 
                        irreversibly comatose;
                            ``(ii) the provision of such treatment 
                        would--
                                    ``(I) merely prolong dying;
                                    ``(II) not be effective in 
                                ameliorating or correcting all of the 
                                infant's life-threatening conditions; 
                                or
                                    ``(III) otherwise be futile in 
                                terms of the survival of the infant; or
                            ``(iii) the provision of such treatment 
                        would be virtually futile in terms of the 
                        survival of the infant and the treatment itself 
                        under such circumstances would be inhumane.
            ``(9) Identification of child protection goals.--The 
        quantitative goals of the State child protection program.
    ``(b) Determinations.--The Secretary shall determine whether a plan 
submitted pursuant to subsection (a) contains the material required by 
subsection (a). The Secretary may not require a State to include in 
such a plan any material not described in subsection (a), and may not 
review the adequacy of State procedures. The Secretary may not require 
a State to alter its child protection law regarding determination of 
the adequacy, type and timing of health care (whether medical, non-
medical or spiritual).

``SEC. 423. GRANTS TO STATES FOR CHILD PROTECTION.

    ``(a) Entitlement.--
            ``(1) In general.--Each eligible State shall be entitled to 
        receive from the Secretary for each fiscal year specified in 
        subsection (b)(1) a grant in an amount equal to the State share 
        of the child protection amount for the fiscal year.
            ``(2) Additional grant.--
                    ``(A) In general.--In addition to a grant under 
                paragraph (1) of this subsection, the Secretary shall 
                pay to each eligible State for each fiscal year 
                specified in subsection (b)(1) an amount equal to the 
                State share of the amount (if any) appropriated 
                pursuant to subparagraph (B) of this paragraph for the 
                fiscal year.
                    ``(B) Limitation on authorization of 
                appropriations.--For grants under subparagraph (A), 
                there are authorized to be appropriated to the 
                Secretary an amount not to exceed $486,000,000 for each 
                fiscal year specified in subsection (b)(1).
    ``(b) Definitions.--As used in this section:
            ``(1) Child protection amount.--The term `child protection 
        amount' means--
                    ``(A) $3,930,000,000 for fiscal year 1996;
                    ``(B) $4,195,000,000 for fiscal year 1997;
                    ``(C) $4,507,000,000 for fiscal year 1998;
                    ``(D) $4,767,000,000 for fiscal year 1999; and
                    ``(E) $5,071,000,000 for fiscal year 2000.
            ``(2) State share.--
                    ``(A) In general.--The term `State share' means the 
                qualified child protection expenses of the State 
                divided by the sum of the qualified child protection 
                expenses of all of the States.
                    ``(B) Qualified child protection expenses.--The 
                term `qualified child protection expenses' means, with 
                respect to a State the greater of--
                            ``(i) \1/3\ of the total amount of 
                        obligations to the State under the provisions 
                        of law specified in subparagraph (C) for fiscal 
                        years 1992, 1993, and 1994; or
                            ``(ii) the total amount of obligations to 
                        the State under such provisions of law for 
                        fiscal year 1994.
                    ``(C) Provisions of law.--The provisions of law 
                specified in this subparagraph are the following (as in 
                effect immediately before the effective date of this 
                part):
                            ``(i) Section 474(a) (other than 
                        subparagraphs (C) and (D) of paragraph (3)) of 
                        this Act.
                            ``(ii) Section 304 of the Family Violence 
                        Prevention and Services Act.
                            ``(iii) Section 107(a) of the Child Abuse 
                        Prevention and Treatment Act.
                            ``(iv) Section 201(d) of the Child Abuse 
                        Prevention and Treatment Act.
                            ``(v) Section 423 of this Act.
            ``(3) State.--The term `State' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, and American Samoa.
    ``(c) Use of Grant.--
            ``(1) In general.--A State to which a grant is made under 
        this section may use the grant in any manner that the State 
        deems appropriate to accomplish the purpose of this part, 
        including setting up abuse and neglect reporting systems, abuse 
        and neglect prevention, family preservation, foster care, 
        adoption, program administration, and training.
            ``(2) Authority to use portion of grant for other 
        purposes.--
                    ``(A) In general.--A State may use not more than 30 
                percent of the amount of the grant made to the State 
                under this section for fiscal year 1998 or a succeeding 
                fiscal year to carry out a State program pursuant to 
                any or all of the following provisions of law:
                            ``(i) Part A of this title.
                            ``(ii) Title XX of this Act.
                            ``(iii) The Child Care and Development 
                        Block Grant Act of 1990.
                            ``(iv) Any provision of law, enacted into 
                        law during the 104th Congress, under which 
                        grants are made to States for food and 
                        nutrition or employment and training.
                    ``(B) Applicable rules.--Any amount paid to the 
                State under this part that is used to carry out a State 
                program pursuant to a provision of law specified in 
                subparagraph (A) shall not be subject to the 
                requirements of this part, but shall be subject to the 
                requirements that apply to Federal funds provided 
                directly under the provision of law to carry out the 
                program.
            ``(3) Timing of expenditures.--A State to which a grant is 
        made under this section for a fiscal year shall expend the 
        total amount of the grant not later than the end of the 
        immediately succeeding fiscal year.
            ``(4) Rule of interpretation.--This part shall not be 
        interpreted to prohibit short- and long-term foster care 
        facilities operated for profit from receiving funds provided 
        under this part.
    ``(d) Timing of Payments.--The Secretary shall pay each eligible 
State the amount of the grant payable to the State under this section 
in quarterly installments.
    ``(e) Penalties.--
            ``(1) For use of grant in violation of this part.--
                    ``(A) In general.--If an audit conducted pursuant 
                to chapter 75 of title 31, United States Code, finds 
                that an amount paid to a State under this section for a 
                fiscal year has been used in violation of this part, 
                then the Secretary shall reduce the amount of the grant 
                that would (in the absence of this subsection) be 
                payable to the State under this section for the 
                immediately succeeding fiscal year by the amount so 
                used.
                    ``(B) Limitation.--In carrying out subparagraph 
                (A), the Secretary shall not reduce any quarterly 
                payment by more than 25 percent.
                    ``(C) Carryforward of unrecovered penalty.--To the 
                extent that subparagraph (B) prevents the Secretary 
                from recovering during a fiscal year the full amount of 
                a penalty imposed on a State under subparagraph (A) for 
                a prior fiscal year, the Secretary shall apply 
                subparagraph (A) to the grant otherwise payable to the 
                State under this section for the immediately succeeding 
                fiscal year.
            ``(2) For failure to maintain effort.--If an audit 
        conducted pursuant to chapter 75 of title 31, United States 
        Code, finds that the amount expended by a State (other than 
        from amounts provided by the Federal Government) during fiscal 
        year 1996 or 1997 to carry out the State program funded under 
        this part is less than the total amount expended by the State 
        (other than from amounts provided by the Federal Government) 
        during fiscal year 1995 under parts B and E of this title, then 
        the Secretary shall reduce the amount of the grant that would 
        (in the absence of this subsection) be payable to the State 
        under this section for the immediately succeeding fiscal year 
        by the amount of the difference.
            ``(3) For failure to submit required report.--
                    ``(A) In general.--The Secretary shall reduce by 3 
                percent the amount of the grant that would (in the 
                absence of this subsection) be payable to a State under 
                this section for a fiscal year if the Secretary 
                determines that the State has not submitted the report 
                required by section 427(b) for the immediately 
                preceding fiscal year, within 6 months after the end of 
                the immediately preceding fiscal year.
                    ``(B) Rescission of penalty.--The Secretary shall 
                rescind a penalty imposed on a State under subparagraph 
                (A) with respect to a report for a fiscal year if the 
                State submits the report before the end of the 
                immediately succeeding fiscal year.
    ``(f) Limitation on Federal Authority.--Except as expressly 
provided in this part, the Secretary may not regulate the conduct of 
States under this part or enforce any provision of this part.
``SEC. 424. CHILD PROTECTION STANDARDS.

    ``(a) In General.--Each State to which a grant is made under 
section 423 shall operate a child protection program in accordance with 
the following standards in order to assure the protection of children:
            ``(1) The primary standard by which a State child welfare 
        system shall be judged is the protection of children.
            ``(2) Each State shall investigate reports of abuse and 
        neglect promptly.
            ``(3) Children removed from their homes shall have a 
        permanency plan and a dispositional hearing by a court or a 
        court-appointed body within 3 months after a fact-finding 
        hearing.
            ``(4) All child protection cases in which the child is 
        placed outside the home shall be reviewed every 6 months unless 
        the child is in a long-term placement.
    ``(b) Placement of Children With Relatives.--A State to which a 
grant is made under this part may consider--
            ``(1) establishing a new type of foster care placement, 
        which could be considered a permanent placement, for children 
        who are separated from their parents (in this subsection 
        referred to as `kinship care') under which--
                    ``(A) adult relatives of such children would be the 
                preferred placement option if such relatives meet all 
                relevant child protection standards established by the 
                State;
                    ``(B) the State would make a needs-based payment 
                and provide supportive services, as appropriate, with 
                respect to children placed in a kinship care 
                arrangement; and
            ``(2) in placing children for adoption, giving preference 
        to adult relatives who meet applicable adoption standards 
        (including those acting as foster parents of such children).

``SEC. 425. CITIZEN REVIEW PANELS.

    ``(a) Establishment.--Each State to which a grant is made under 
section 423 shall establish at least 3 citizen review panels.
    ``(b) Composition.--Each panel established under subsection (a) 
shall be broadly representative of the community from which drawn.
    ``(c) Frequency of Meetings.--Each panel established under 
subsection (a) shall meet not less frequently than quarterly.
    ``(d) Duties.--
            ``(1) In general.--Each panel established under subsection 
        (a) shall, by examining specific cases, determine the extent to 
        which the State and local agencies responsible for carrying out 
        activities under this part are doing so in accordance with the 
        State plan, with the child protection standards set forth in 
        section 424, and with any other criteria that the panel 
        considers important to ensure the protection of children.
            ``(2) Confidentiality.--The members and staff of any panel 
        established under subsection (a) shall not disclose to any 
        person or government any
         information about any specific child protection case with 
respect to which the panel is provided information.
    ``(e) State Assistance.--Each State that establishes a panel under 
subsection (a) shall afford the panel access to any information on any 
case that the panel desires to review, and shall provide the panel with 
staff assistance in performing its duties.
    ``(f) Reports.--Each panel established under subsection (a) shall 
make a public report of its activities after each meeting.

``SEC. 426. CLEARINGHOUSE AND HOTLINE ON MISSING AND RUNAWAY CHILDREN.

    ``(a) In General.--The Attorney General of the United States shall 
establish and operate by contract a clearinghouse of information on 
children who are missing or have run away from home, including a 24-
hour toll-free telephone hotline which may be contacted for information 
on such children.
    ``(b) Limitation on Authorization of Appropriations.--To carry out 
subsection (a), there are authorized to be appropriated to the Attorney 
General of the United States not to exceed $7,000,000 for each fiscal 
year.

``SEC. 427. DATA COLLECTION AND REPORTING.

    ``(a) Annual Reports on State Child Welfare Goals.--On the date 
that is 3 years after the effective date of this part and annually 
thereafter, each State to which a grant is made under section 423 shall 
submit to the Secretary a report that contains quantitative information 
on the extent to which the State is making progress toward achieving 
the goals of the State child protection program.
    ``(b) Annual State Data Reports.--Each State to which a grant is 
made under section 423 shall annually submit to the Secretary of Health 
and Human Services a report that includes the following:
            ``(1) The number of children who were reported to the State 
        during the year as abused or neglected.
            ``(2) Of the number of children described in paragraph (1), 
        the number with respect to whom such reports were 
        substantiated.
            ``(3) Of the number of children described in paragraph 
        (2)--
                    ``(A) the number that did not receive services 
                during the year under the State program funded under 
                this part;
                    ``(B) the number that received services during the 
                year under the State program funded under this part or 
                an equivalent State program; and
                    ``(C) the number that were removed from their 
                families during the year.
            ``(4) The number of families that received preventive 
        services from the State during the year.
            ``(5) The number of children who entered foster care under 
        the responsibility of the State during the year.
            ``(6) The number of children in foster care under the 
        responsibility of the State who exited from foster care during 
        the year.
            ``(7) The types of foster care placements made by the State 
        during the year, and the average monthly number of children in 
        each type of placement.
            ``(8) The average length of the foster care placements made 
        by the State during the year.
            ``(9) The age, ethnicity, gender, and family income of the 
        children placed in foster care under the responsibility of the 
        State during the year.
            ``(10) The number of children in foster care under the 
        responsibility of the State with respect to whom the State has 
        the goal of adoption.
            ``(11) The number of children in foster care under the 
        responsibility of the State who were freed for adoption during 
        the year.
            ``(12) The number of children in foster care under the 
        responsibility of the State whose adoptions were finalized 
        during the year.
            ``(13) The number of disrupted adoptions in the State 
        during the year.
            ``(14) Quantitative measurements showing whether the State 
        is making progress toward the child protection goals identified 
        by the State under section 422(a)(9).
            ``(15) The number of infants abandoned in the State during 
        the year, and the number of such infants who were legally 
        adopted during the year and the length of time between the 
        discovery of the abandonment and such adoption.
            ``(16) The number of children who died during the year 
        while in foster care under the responsibility of the State.
            ``(17) The number of deaths in the State during the year 
        resulting from child abuse or neglect.
            ``(18) The number of children served by the independent 
        living program of the State.
            ``(19) Any other information which the Secretary and a 
        majority of the States agree is appropriate to collect for 
        purposes of this part.
            ``(20) The response of the State to the findings and 
        recommendations of the citizen review panels established by the 
        State pursuant to section 425.
    ``(c) Authority of States to Use Estimates.--A State may comply 
with a requirement to provide precise numerical information described 
in subsection (b) by submitting an estimate which is obtained through 
the use of scientifically acceptable sampling methods.
    ``(d) Annual Report by the Secretary.--Within 6 months after the 
end of each fiscal year, the Secretary shall prepare a report based on 
information provided by the States for the fiscal year pursuant to 
subsection (b), and shall make the report and such information 
available to the Congress and the public.
    ``(e) Scope of State Program Funded Under This Part.--As used in 
subsection (b), the term `State program funded under this part' 
includes any equivalent State program.

``SEC. 428. RESEARCH AND TRAINING.

    ``(a) In General.--The Secretary shall conduct research and 
training in child welfare.
    ``(b) Limitation on Authorization of Appropriations.--To carry out 
subsection (a), there are authorized to be appropriated to the 
Secretary not to exceed $10,000,000 for each fiscal year.

``SEC. 429. NATIONAL RANDOM SAMPLE STUDY OF CHILD WELFARE.

    ``(a) In General.--The Secretary shall conduct a national study 
based on random samples of children who are at risk of child abuse or 
neglect, or are determined by States to have been abused or neglected.
    ``(b) Requirements.--The study required by subsection (a) shall--
            ``(1) have a longitudinal component; and
            ``(2) yield data reliable at the State level for as many 
        States as the Secretary determines is feasible.
    ``(c) Preferred Contents.--In conducting the study required by 
subsection (a), the Secretary should--
            ``(1) collect data on the child protection programs of 
        different small States or (different groups of such States) in 
        different years to yield an occasional picture of the child 
        protection programs of such States;
            ``(2) carefully consider selecting the sample from cases of 
        confirmed abuse or neglect; and
            ``(3) follow each case for several years while obtaining 
        information on, among other things--
                    ``(A) the type of abuse or neglect involved;
                    ``(B) the frequency of contact with State or local 
                agencies;
                    ``(C) whether the child involved has been separated 
                from the family, and, if so, under what circumstances;
                    ``(D) the number, type, and characteristics of out-
                of-home placements of the child; and
                    ``(E) the average duration of each placement.
    ``(d) Reports.--
            ``(1) In general.--From time to time, the Secretary shall 
        prepare reports summarizing the results of the study required 
        by subsection (a), and should include in such reports a 
        comparison of the results of the study with the information 
        reported by States under section 427.
            ``(2) Availability.--The Secretary shall make available to 
        the public any report prepared under paragraph (1), in writing 
        or in the form of an electronic data tape.
            ``(3) Authority to charge fee.--The Secretary may charge 
        and collect a fee for the furnishing of reports under paragraph 
        (2).
    ``(e) Funding.--Out of any money in the Treasury of the United 
States not otherwise appropriated, the Secretary of the Treasury shall 
pay to the Secretary of Health and Human Services $6,000,000 for each 
of fiscal years 1996 through 2000 to carry out this section.

``SEC. 430. REMOVAL OF BARRIERS TO INTERETHNIC ADOPTION.

    ``(a) Purpose.--The purpose of this section is to decrease the 
length of time that children wait to be adopted and to prevent 
discrimination in the placement of children on the basis of race, 
color, or national origin.
    ``(b) Multiethnic Placements.--
            ``(1) Prohibition.--A State or other entity that receives 
        funds from the Federal Government and is involved in adoption 
        or foster care placements may not--
                    ``(A) deny to any person the opportunity to become 
                an adoptive or a foster parent, on the basis of the 
                race, color, or national origin of the person, or of 
                the child, involved; or
                    ``(B) delay or deny the placement of a child for 
                adoption or into foster care, or otherwise discriminate 
                in making a placement decision, on the basis of the 
                race, color, or national origin of the adoptive or 
                foster parent, or the child, involved.
            ``(2) Penalties.--
                    ``(A) State violators.--A State that violates 
                paragraph (1) during a period shall remit to the 
                Secretary all funds that were paid to the State under 
                this part during the period.
                    ``(B) Private violators.--Any other entity that 
                violates paragraph (1) during a period shall remit to 
                the Secretary all funds that were paid to the entity 
                during the period by a State from funds provided under 
                this part.
            ``(3) Private cause of action.--
                    ``(A) In general.--Any individual who is aggrieved 
                by a violation of paragraph (1) by a State or other 
                entity may bring an action seeking relief in any United 
                States district court.
                    ``(B) Statute of limitations.--An action under this 
                paragraph may not be brought more than 2 years after 
                the date the alleged violation occurred.''.

SEC. 14202. CONFORMING AMENDMENTS.

    (a) Amendments to Part D of Title IV of the Social Security Act.--
            (1) Section 452(a)(10)(C) of the Social Security Act (42 
        U.S.C. 652(a)(10)(C)), as amended by section 14104(b)(2)(C) of 
        this Act, is amended--
                    (A) by striking ``(or foster care maintenance 
                payments under part E)'' and inserting ``or cash 
                payments under a State program funded under part B''; 
                and
                    (B) by striking ``or 471(a)(17)''.
            (2) Section 452(g)(2)(A) of such Act (42 U.S.C. 
        652(g)(2)(A)) is amended--
                    (A) by striking ``or E'' the 1st place such term 
                appears and inserting ``or benefits or services are 
                being provided under the State program funded under 
                part B''; and
                    (B) by striking ``or E'' the 2nd place such term 
                appears and inserting ``or benefits or services were 
                being provided under the State program funded under 
                part B''.
            (3) Section 456(a)(1) of such Act (42 U.S.C. 656(a)(1)) is 
        amended by striking ``foster care maintenance payments'' and 
        inserting ``benefits or services under a State program funded 
        under part B''.
            (4) Section 466(a)(3)(B) of such Act (42 U.S.C. 
        666(a)(3)(B)), as amended by section 14104(b)(13) of this Act, 
        is amended by striking ``or 471(a)(17)''.
    (b) Repeal of Part E of Title IV of the Social Security Act.--Part 
E of title IV of such Act (42 U.S.C. 671-679) is hereby repealed.
    (c) Amendment to Title XVI of the Social Security Act as in Effect 
With Respect to the States.--Section 1611(c)(5)(B) of such Act (42 
U.S.C. 1382(c)(5)(B)) is amended to read as follows: ``(B) the State 
program funded under part B of title IV,''.
    (d) Repeal of Section 13712 of the Omnibus Budget Reconciliation 
Act of 1993.--Section 13712 of the Omnibus Budget Reconciliation Act of 
1993 (42 U.S.C. 670 note) is hereby repealed.
    (e) Amendment to Section 9442 of the Omnibus Budget Reconciliation 
Act of 1986.--Section 9442(4) of the Omnibus Budget Reconciliation Act 
of 1986 (42 U.S.C. 679a(4)) is amended by inserting ``(as in effect 
before October 1, 1995)'' after ``Act''.
    (f) Repeal of Section 553 of the Howard M. Metzenbaum Multiethnic 
Placement Act of 1994.--Section 553 of the Howard M. Metzenbaum 
Multiethnic Placement Act of 1994 (42 U.S.C. 5115a; 108 Stat. 4056) is 
hereby repealed.
    (g) Repeal of Subtitle C of Title XVII of the Violent Crime Control 
and Law Enforcement Act of 1994.--Subtitle C of title XVII of the 
Violent Crime Control and Law Enforcement Act of 1994 is hereby 
repealed.

SEC. 14203. CONTINUED APPLICATION OF CURRENT STANDARDS UNDER MEDICAID 
              PROGRAM.

    Section 1931 of the Social Security Act, as inserted by section 
14106(a)(2) of this Act, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``part A of'', and
                    (B) by striking ``under such part'' and inserting 
                ``under a part of such title''; and
            (2) in subsection (b), by striking ``part A of''.

SEC. 14204. EFFECTIVE DATE.

    (a) In General.--this subtitle and the amendments made by this 
subtitle shall take effect on October 1, 1995.
    (b) Transition Rule.--The amendments made by this subtitle shall 
not apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to aid or services provided before 
        the effective date of this subtitle under the provisions 
        amended; and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such provisions.

SEC. 14205. SENSE OF THE CONGRESS REGARDING TIMELY ADOPTION OF 
              CHILDREN.

    It is the sense of the Congress that--
            (1) too many children who wish to be adopted are spending 
        inordinate amounts of time in foster care;
            (2) there is an urgent need for States to increase the 
        number of waiting children being adopted in a timely and lawful 
        manner;
            (3) studies have shown that States spend an excess of 
        $15,000 each year on each special needs child in foster care, 
        and would save significant amounts of money if they offered 
        incentives to families to adopt special needs children;
            (4) States should allocate sufficient funds under this 
        subtitle for adoption assistance and medical assistance to 
        encourage more families to adopt children who otherwise would 
        languish in the foster care system for a period that many 
        experts consider detrimental to their development;
            (5) States should offer incentives for families that adopt 
        special needs children to make adoption more affordable for 
        middle-class families;
            (6) when it is necessary for a State to remove a child from 
        the home of the child's biological parents, the State should 
        strive--
                    (A) to provide the child with a single foster care 
                placement and a single coordinated case team; and
                    (B) to conclude an adoption of the child, when 
                adoption is the goal of the child and the State, within 
                one year of the child's placement in foster care; and
            (7) States should participate in local, regional, or 
        national programs to enable maximum visibility of waiting 
        children to potential parents. Such programs should include a 
        nationwide, interactive computer network to disseminate 
        information on children eligible for adoption to help match 
        them with families around the country.

  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.

    (a) Goals.--Section 658A of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9801 note) is amended--
            (1) in the heading of such section by inserting ``and 
        goals'' after ``title'',
            (2) by inserting ``(a) Short Title.--'' before ``This'', 
        and
            (3) by adding at the end the following:
    ``(b) Goals.--The goals of this subchapter are--
            ``(1) to allow each State maximum flexibility in developing 
        child care programs and policies that best suit the needs of 
        children and parents within such State;
            ``(2) to promote parental choice to empower working parents 
        to make their own decisions on the child care that best suits 
        their family's needs;
            ``(3) to encourage States to provide consumer education 
        information to help parents make informed choices about child 
        care;
            ``(4) to assist States to provide child care to parents 
        trying to achieve independence from public assistance; and
            ``(5) to assist States in implementing the health, safety, 
        licensing, and registration standards established in State 
        regulations.''.
    (b) Authorization of Appropriations.--Section 658B of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is 
amended to read as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this 
subchapter $2,093,000,000 for each of the fiscal years 1996, 1997, 
1998, 1999, and 2000.''.
    (c) Lead Entity.--Section 658D of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858b) is amended--
            (1) in the heading of such section by striking ``agency'' 
        and inserting ``entity'',
            (2) in subsection (a) by inserting ``or other entity'' 
        after ``State agency'', and
            (3) by striking ``lead agency'' each place it appears and 
        inserting ``lead entity''.
    (d) Application and Plan.--Section 658E of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858c) is amended--
            (1) in subsection (b)--
                    (A) by striking ``implemented--'' and all that 
                follows through ``(2)'' and inserting ``implemented'', 
                and
                    (B) by striking ``for subsequent State plans'',
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) in the heading of such paragraph by 
                        striking ``agency'' and inserting ``entity'', 
                        and
                            (ii) by striking ``agency'' and inserting 
                        ``entity'',
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in clause (i) by striking ``, 
                                other than through assistance provided 
                                under paragraph (3)(C),'' and
                                    (II) by striking ``except'' and all 
                                that follows through ``1992'', and 
                                inserting ``and provide a detailed 
                                description of the procedures the State 
                                will implement to carry out the 
                                requirements of this subparagraph'',
                            (ii) in subparagraph (B)--
                                    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify'', 
                                and
                                    (II) by inserting before the period 
                                at the end ``and provide a detailed 
                                description of such procedures'',
                            (iii) in subparagraph (C)--
                                    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify'', 
                                and
                                    (II) by inserting before the period 
                                at the end ``and provide a detailed 
                                description of how such record is 
                                maintained and is made available'',
                            (iv) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) Consumer education information.--Provide 
                assurances that the State will collect and disseminate 
                to parents of eligible children and the general public, 
                consumer education information that will promote 
                informed child care choices.'',
                            (v) in subparagraph (E)--
                                    (I) by striking ``Provide 
                                assurances'' and inserting ``Certify'',
                                    (II) in clause (i) by inserting 
                                ``health, safety, and'' after ``comply 
                                with all'',
                                    (III) in clause (i) by striking ``; 
                                and'' at the end,
                                    (IV) by striking ``that--'' and all 
                                that follows through ``(i)'', and 
                                inserting ``that'', and
                                    (V) by striking ``(ii)'' and all 
                                that follows through the end of such 
                                subparagraph, and inserting ``and 
                                provide a detailed description of such 
                                requirements and of how such 
                                requirements are effectively 
                                enforced.'', and
                            (vi) by striking subparagraphs (F), (G), 
                        (H), (I), and (J),
                    (C) in paragraph (3)--
                            (i) in subparagraph (A) by inserting ``or 
                        as authorized by section 658T'' before the 
                        period at the end,
                            (ii) in subparagraph (B)--
                                    (I) by striking ``.--Subject to the 
                                reservation contained in subparagraph 
                                (C), the'' and inserting ``and related 
                                activities.--The'',
                                    (II) by inserting ``, other than 
                                amounts transferred under section 
                                658T,'' after ``subchapter'',
                                    (III) in clause (i) by striking ``; 
                                and'' at the end and inserting a 
                                period,
                                    (IV) by striking ``for--'' and all 
                                that follows through ``section 
                                658E(c)(2)(A)'' and inserting ``for 
                                child care services, activities that 
                                improve the quality or availability of 
                                such services, and any other activity 
                                that the State deems appropriate to 
                                realize any of the goals specified in 
                                paragraphs (2) through (5) of section 
                                658A(b)'', and
                                    (V) by striking clause (ii), and
                            (iii) by amending subparagraph (C) to read 
                        as follows:
                    ``(C) Limitation on administrative costs.--Not more 
                than 5 percent of the aggregate amount of payments 
                received under this subchapter by a State in each 
                fiscal year may be expended for administrative costs 
                incurred
                 by such State to carry out all its functions and 
duties under this subchapter.'',
                    (D) in paragraph (4)(A)--
                            (i) by striking ``provide assurances'' and 
                        inserting ``certify'',
                            (ii) in the first sentence by inserting 
                        ``and shall provide a summary of the facts 
                        relied on by the State to determine that such 
                        rates are sufficient to ensure such access'' 
                        before the period, and
                            (iii) by striking the last sentence, and
                    (E) by striking paragraph (5).
    (e) Limitations on State Allotments--Section 658F(b)(2) of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858d(b)(2)) is amended by striking ``referred to in section 
658E(c)(2)(F)''.
    (f) Repeal of Earmarked Required Expenditures.--The Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9801 note) is amended by 
striking sections 658G and 658H.
    (g) Administration and Enforcement.--Section 658I(a) of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858g(a)) is 
amended--
            (1) in paragraph (1) by inserting ``and'' at the end,
            (2) by striking paragraph (2), and
            (3) by redesignating paragraph (3) as paragraph (2).
    (h) Payments.--Section 658J(c) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858h(c)) is amended--
            (1) by striking ``expended'' and inserting ``obligated'', 
        and
            (2) by striking ``3 fiscal years'' and inserting ``fiscal 
        year''.
    (i) Annual Report and Audits.--Section 658K of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858i) is amended--
            (1) in the heading of such section by inserting ``, 
        evaluation plans,'' after ``report'',
            (2) in subsection (a)--
                    (A) by striking ``, 1992'' and inserting 
                ``following the end of the first fiscal year with 
                respect to which the amendments made by the Personal 
                Responsibility Act of 1995 apply'',
                    (B) by amending paragraph (2) to read as follows:
            ``(2) containing data on the manner in which the child care 
        needs of families in the State are being fulfilled, including 
        information concerning--
                    ``(A) the number and ages of children being 
                assisted with funds provided under this subchapter;
                    ``(B) with respect to the families of such 
                children--
                            ``(i) the number of other children in such 
                        families;
                            ``(ii) the number of such families that 
                        include only 1 parent;
                            ``(iii) the number of such families that 
                        include both parents;
                            ``(iv) the ages of the mothers of such 
                        children;
                            ``(v) the ages of the fathers of such 
                        children;
                            ``(vi) the sources of the economic 
                        resources of such families, including the 
                        amount of such resources obtained from (and 
                        separately identified as being from)--
                                    ``(I) employment, including self-
                                employment;
                                    ``(II) assistance received under 
                                part A of title IV of the Social 
                                Security Act (42 U.S.C. 601 et seq.);
                                    ``(III) part B of title IV of the 
                                Social Security Act (42 U.S.C. 621 et 
                                seq.);
                                    ``(IV) the Child Nutrition Act of 
                                1966 (42 U.S.C. 1771 et seq.);
                                    ``(V) the National School Lunch Act 
                                (42 U.S.C. 1751 et seq.);
                                    ``(VI) assistance received under 
                                title XVI of the Social Security Act 
                                (42 U.S.C. 1381 et seq.);
                                    ``(VII) assistance received under 
                                title XIV of the Social Security Act 
                                (42 U.S.C. 1351 et seq.);
                                    ``(VIII) assistance received under 
                                title XIX of the Social Security Act 
                                (42 U.S.C. 1396 et seq.);
                                    ``(IX) assistance received under 
                                title XX of the Social Security Act (42 
                                U.S.C. 1397 et seq.); and
                                    ``(X) any other source of economic 
                                resources the Secretary determines to 
                                be appropriate;
                    ``(C) the number of such providers separately 
                identified with respect to each type of child care 
                provider specified in section 658P(5) that provided 
                child care services obtained with assistance provided 
                under this subchapter;
                    ``(D) with respect to cost of such services--
                            ``(i) the cost imposed by such providers to 
                        provide such services; and
                            ``(ii) the portion of such cost paid with 
                        assistance provided under this subchapter;
                    ``(E) with respect to consumer education 
                information described in section 658E(c)(2)(D) provided 
                by such State--
                            ``(i) the manner in which such information 
                        was provided; and
                            ``(ii) the number of parents to whom such 
                        information was provided; and
                    ``(F) with respect to complaints received by such 
                State regarding child care services obtained with 
                assistance provided under this subchapter--
                            ``(i) the number of such complaints that 
                        were found to have merit; and
                            ``(ii) a description of the actions taken 
                        by the State to correct the circumstances on 
                        which such complaints were based.'',
                    (C) by striking paragraphs (3), (4), (5), and (6) 
                and inserting the following:
            ``(3) containing evidence demonstrating that the State 
        satisfied the requirements of section 658E(c)(2)(F); and
            ``(4) identifying each State program operated under a 
        provision of law specified in section 658T to which the State 
        transferred funds under the authority of such section, 
        specifying the amount of funds so transferred to such program, 
        and containing a justification for so transferring such 
        amount;'', and
            (3) in subsection (b)--
                    (A) in paragraph (1) by striking ``a application'' 
                and inserting ``an application'',
                    (B) in paragraph (2) by striking ``any agency 
                administering activities that receive'' and inserting 
                ``the State that receives'', and
                    (C) in paragraph (4) by striking ``entitles'' and 
                inserting ``entitled'', and
            (4) by redesignating subsection (b) as subsection (c), and
            (5) by inserting after subsection (a) the following:
    ``(b) State Evaluation Plan and Evaluation Results.--
            ``(1) Evaluation plan.--In the first report submitted under 
        subsection (a) after the date of the enactment of the Personal 
        Responsibility Act of 1995, and in the report for each 
        alternating 1-year period thereafter, the State shall include a 
        plan the State intends to carry out in the 1-year period 
        subsequent to the period for which such report is submitted, to 
        evaluate the extent to which the State has realized each of the 
        goals specified in paragraphs (2) through (5) of section 
        658A(b). The State shall include in such plan a description of 
        the types of data and other information the State will collect 
        to determine whether the State has realized such goals.
            ``(2) Evaluation results.--In the second report submitted 
        under subsection (a) after the date of the enactment of the 
        Personal Responsibility Act of 1995, and in the report for each 
        alternating 1-year period thereafter, the State shall include a 
        summary of the results of an evaluation carried out under the 
        evaluation plan contained in the report submitted under 
        subsection (a) for the preceding 1-year period.''.
    (j) Report by Secretary.--Section 658L of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858j) is amended--
            (1) by striking ``, 1993, and annually'' and inserting 
        ``following the end of the second fiscal year with respect to 
        which the amendments made by the Personal Responsibility Act of 
        1995 apply, and biennially'',
            (2) by striking ``Committee on Education and Labor'' and 
        inserting ``Speaker'',
            (3) by striking ``Committee on Labor and Human Resources'' 
        and inserting ``President pro tempore'', and
            (4) by striking the last sentence.
    (k) Reallotments.--Section 658O of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858m) is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``Possessions'' and inserting 
                ``possessions'',
                    (B) by inserting ``and'' after ``States,'', and
                    (C) by striking ``, and the Trust Territory of the 
                Pacific Islands'',
            (2) by amending subsection (b) to read as follows:
    ``(b) State Allotment.--From the amount appropriated under section 
658B for each fiscal year remaining after reservations under subsection 
(a), the Secretary shall allot to each State (excluding Guam, American 
Samoa, the Virgin Islands of the United States, and the Commonwealth of 
the Northern Mariana Islands) an amount that bears the same ratio to 
the amount so appropriated for such fiscal year as the aggregate of the 
amounts received by the State under--
            ``(1) this subchapter for fiscal year 1994;
            ``(2) section 403 of the Social Security Act, with respect 
        to expenditures by the State for child care under section 
        402(g)(1) of such Act during fiscal year 1994; and
            ``(3) section 403(n) of the Social Security Act for fiscal 
        year 1994;
bears to the aggregate of the amounts received by all the States 
(excluding Guam, American Samoa, the Virgin Islands of the United 
States, and the Commonwealth of the Northern Mariana Islands) under 
paragraphs (1), (2), and (3).'',
            (3) in subsection (c)--
                    (A) in paragraph (2)(A) by striking ``agency'' and 
                inserting ``entity'', and
                    (B) in paragraph (5) by striking ``our'' and 
                inserting ``out'',
            (4) by striking subsection (e), and
            (5) by redesignating subsection (f) as subsection (e).
    (l) Definitions.--Section 658P of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--
            (1) in paragraph (5)(A)--
                    (A) in clause (i) by striking ``and'' at the end 
                and inserting ``or'',
                    (B) by striking ``that--'' and all that follows 
                through ``(i)'', and inserting ``that'', and
                    (C) by striking clause (ii),
            (2) by amending paragraph (8) to read as follows:
            ``(8) Lead entity.--The term `lead entity' means the State 
        agency or other entity designated under section 658B(a).'',
            (3) by striking paragraphs (3), (10), and (12),
            (4) by inserting after paragraph (2) the following:
            ``(3) Child care services.--The term `child care services' 
        means services that constitute physical care of a child and may 
        include services that are designed to enhance the educational, 
        social, cultural, emotional, and recreational development of a 
        child
         but that are not intended to serve as a substitute for 
compulsory educational services.'',
            (5) in paragraph (13)--
                    (A) by inserting ``or'' after ``Samoa,'', and
                    (B) by striking ``, and the Trust Territory of the 
                Pacific Islands'', and
            (6) by redesignating paragraphs (11), (13), and (14) as 
        paragraphs (10), (11), and (12), respectively.
    (m) Authority To Transfer Funds.--The Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended by 
inserting after section 658S the following:

``SEC. 658T. TRANSFER OF FUNDS.

    ``(a) Authority.--Of the aggregate amount of payments received 
under this subchapter by a State in each fiscal year, the State may 
transfer not more than 20 percent for use by the State to carry out 
State programs under 1 or more of the following provisions of law:
            ``(1) Part A of title IV of the Social Security Act (42 
        U.S.C. 601 et seq.).
            ``(2) Part B of title IV of the Social Security Act (42 
        U.S.C. 621 et seq.).
            ``(3) The Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
        seq.).
            ``(4) The National School Lunch Act (42 U.S.C. 1751 et 
        seq.).
            ``(5) Title XX of the Social Security Act (42 U.S.C. 1397 
        et seq.).
    ``(b) Requirements Applicable to Funds Transferred.--Funds 
transferred under subsection (a) to carry out a State program operated 
under a provision of law specified in such subsection shall not be 
subject to the requirements of this subchapter, but shall be subject to 
the same requirements that apply to Federal funds provided directly 
under such provision of law to carry out such program.''.

SEC. 14302. REPEAL OF CHILD CARE ASSISTANCE AUTHORIZED BY ACTS OTHER 
              THAN THE SOCIAL SECURITY ACT.

    (a) Child Development Associate Scholarship Assistance Act of 
1985.--Title VI of the Human Services Reauthorization Act of 1986 (42 
U.S.C. 10901-10905) is repealed.
    (b) State Dependent Care Development Grants Act.--Subchapter E of 
chapter 8 of subtitle A of title VI of the Omnibus Budget 
Reconciliation Act of 1981 (42 U.S.C. 9871-9877) is repealed.
    (c) Programs of National Significance.--Title X of the Elementary 
and Secondary Education Act of 1965, as amended by Public Law 103-382 
(108 Stat. 3809 et seq.), is amended--
            (1) in section 10413(a) by striking paragraph (4),
            (2) in section 10963(b)(2) by striking subparagraph (G), 
        and
            (3) in section 10974(a)(6) by striking subparagraph (G).
    (d) Native Hawaiian Family-Based Education Centers.--Section 9205 
of the Native Hawaiian Education Act (Public Law 103-382; 108 Stat. 
3794) is repealed.

       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.

    The Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) is amended 
to read as follows:
``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `Child Nutrition 
Act of 1966'.
    ``(b) Table of Contents.--The table of contents 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.
``SEC. 2. AUTHORIZATION.

    ``(a) In General.--In the case of each State that in accordance 
with section 4 submits to the Secretary of Agriculture an application 
for a fiscal year, the Secretary shall provide a grant for the year to 
the State for the purpose of achieving the goals described in 
subsection (b). The grant shall consist of the allotment determined for 
the State under section 3.
    ``(b) Goals.--The goals of this Act are--
            ``(1) to provide nutritional risk assessment, food 
        assistance based on such risk assessment, and nutrition 
        education and counseling to economically disadvantaged pregnant 
        women, postpartum women, breastfeeding women, infants, and 
        young children who are determined to be at nutritional risk;
            ``(2) to provide nutritional risk assessments of such women 
        in order to provide food assistance and nutrition education 
        which meets their specific needs;
            ``(3) to provide nutrition education to such women in order 
        to increase their awareness of the types of foods which should 
        be consumed to maintain good health;
            ``(4) to provide food assistance, including nutritious meal 
        supplements, to such women in order to reduce incidences of 
        low-birthweight babies and babies born with birth defects as a 
        result of nutritional deficiencies;
            ``(5) to provide food assistance, including nutritious meal 
        supplements, to such women, infants, and young children in 
        order to ensure their future good health;
            ``(6) to ensure that such women, infants, and children are 
        referred to other health services, including routine pediatric 
        and obstetric care, when necessary;
            ``(7) to ensure that children from economically 
        disadvantaged families in day care facilities, family day care 
        homes, homeless shelters, settlement houses, recreational 
        centers, Head Start centers, Even Start programs and child care 
        facilities for children with disabilities receive nutritious 
        meals, supplements, and low-cost milk; and
            ``(8) to provide summer food service programs to meet the 
        nutritional needs of children from economically disadvantaged 
        families during months when school is not in session.
    ``(c) Timing of Payments.--The Secretary shall provide payments 
under a grant under this Act to States on a quarterly basis.

``SEC. 3. ALLOTMENT.

    ``The Secretary shall allot the amount appropriated to carry out 
this Act for a fiscal year among the States as follows:
            ``(1) First fiscal year.--
                    ``(A) In general.--With respect to the first fiscal 
                year for which the Secretary provides grants to States 
                under this Act, the amount allotted to each State shall 
                bear the same proportion to such amount appropriated as 
                the aggregate of the amounts described in subparagraph 
                (B) that were received by each such State under the 
                provisions of law described in such subparagraph (as 
                such provisions of law were in effect on the day before 
                the date of the enactment of the Personal 
                Responsibility Act of 1995) for the preceding fiscal 
                year bears to the aggregate of the amounts described in 
                subparagraph (B) that were received by all such States
                 under such provisions of law for such preceding fiscal 
year.
                    ``(B) Amounts described.--The amounts described in 
                this subparagraph are the following:
                            ``(i) The amount received under the special 
                        supplemental nutrition program for women, 
                        infants, and children under section 17 of this 
                        Act (42 U.S.C. 1786).
                            ``(ii) The amount received under the 
                        homeless children nutrition program established 
                        under section 17B of the National School Lunch 
                        Act (42 U.S.C. 1766b).
                            ``(iii) 87.5 percent of the sum of the 
                        amounts received under the following programs:
                                    ``(I) The child and adult care food 
                                program under section 17 of the 
                                National School Lunch Act (42 U.S.C. 
                                1766), except for subsection (o) of 
                                such section.
                                    ``(II) The summer food service 
                                program for children established under 
                                section 13 of the National School Lunch 
                                Act (42 U.S.C. 1761).
                                    ``(III) The special milk program 
                                established under section 3 of this Act 
                                (42 U.S.C. 1772).
            ``(2) Second fiscal year.--With respect to the second 
        fiscal year for which the Secretary provides grants to States 
        under this Act--
                    ``(A) 95 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount that bears the same proportion to such amount 
                appropriated as the amount allotted to each such State 
                from a grant under this Act for the preceding fiscal 
                year bears to the aggregate of the amounts allotted to 
                all such States from grants under this Act for such 
                preceding fiscal year; and
                    ``(B) 5 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount that bears the same proportion to such amount 
                appropriated as the relative number of individuals 
                receiving assistance during the 1-year period ending on 
                June 30 of the preceding fiscal year in such State from 
                amounts received from a grant under this Act for such 
                preceding fiscal year bears to the total number of 
                individuals receiving assistance in all States from 
                amounts received from grants under this Act for the 
                preceding fiscal year.
            ``(3) Third and fourth fiscal years.--With respect to each 
        of the third and fourth fiscal years for which the Secretary 
        provides grants to States under this Act--
                    ``(A) 90 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(A); and
                    ``(B) 10 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(B).
            ``(4) Fifth fiscal year.--With respect to the fifth fiscal 
        year for which the Secretary provides grants to States under 
        this Act--
                    ``(A) 85 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(A); and
                    ``(B) 15 percent of such amount appropriated shall 
                be allotted among the States by allotting to each State 
                an amount determined in accordance with the formula 
                described in paragraph (2)(B).

``SEC. 4. APPLICATION.

    ``The Secretary may provide a grant under this Act to a State for a 
fiscal year only if the State submits to the Secretary an application 
containing only--
            ``(1) an agreement that the State will use amounts received 
        from such grant in accordance with section 5;
            ``(2) except as provided in paragraph (3), an agreement 
        that the State will set minimum nutritional requirements for 
        food assistance provided under this Act based on the most 
        recent tested nutritional research available, except that--
                    ``(A) such requirements shall not be construed to 
                prohibit the substitution of foods to accommodate the 
                medical or other special dietary needs of individual 
                students; and
                    ``(B) such requirements shall, at a minimum, be 
                based on--
                            ``(i) the weekly average of the nutrient 
                        content of school lunches; or
                            ``(ii) such other standards as the State 
                        may prescribe;
            ``(3) an agreement that the State, with respect to the 
        provision of food assistance to economically disadvantaged 
        pregnant women, postpartum women, breastfeeding women, infants, 
        and young children, shall--
                    ``(A) implement the minimum nutritional 
                requirements described in paragraph (2) for such food 
                assistance; or
                    ``(B) implement the model nutrition standards 
                developed under section 8 for such food assistance;
            ``(4) an agreement that the State will take such reasonable 
        steps as the State deems necessary to restrict the use and 
        disclosure of information about individuals and families 
        receiving assistance under this Act;
            ``(5) an agreement that the State will use not more than 5 
        percent of the amount of such grant for administrative costs 
        incurred to provide assistance under this Act, except that 
        costs associated with the nutritional risk assessment of 
        individuals described in section 5(a)(1) and costs associated 
        with nutrition education and counseling provided to such 
        individuals shall not be considered to be administrative costs; 
        and
            ``(6) an agreement that the State will submit to the 
        Secretary a report in accordance with section 6.
``SEC. 5. USE OF AMOUNTS.

    ``(a) In General.--The Secretary may provide a grant under this Act 
to a State only if the State agrees that it will use all amounts 
received from such grant--
            ``(1) subject to subsection (b), to provide nutritional 
        risk assessment, food assistance based on such risk assessment, 
        and nutrition education and counseling to economically 
        disadvantaged pregnant women, postpartum women, breastfeeding 
        women, infants, and young children who are determined to be at 
        nutritional risk;
            ``(2) to provide milk in nonprofit nursery schools, child 
        care centers, settlement houses, summer camps, and similar 
        institutions devoted to the care and training of children, to 
        children from economically disadvantaged families;
            ``(3) to provide food service programs in institutions and 
        family day care homes providing child care to children from 
        economically disadvantaged families;
            ``(4) to provide summer food service programs carried out 
        by nonprofit food authorities, local governments, nonprofit 
        higher education institutions participating in the National 
        Youth Sports Program, and residential nonprofit summer camps to 
        children from economically disadvantaged families; and
            ``(5) to provide nutritious meals to pre-school age 
        homeless children in shelters and other facilities serving the 
        homeless population.
    ``(b) Additional Requirements With Respect To Assistance for 
Pregnant, Postpartum, and Breastfeeding Women, Infants, and Children.--
            ``(1) Minimum amount of assistance.--The State shall ensure 
        that not less than 80 percent of the amount of the grant is 
        used to provide nutritional risk assessment, food assistance 
        based on such nutritional risk assessment, and nutrition 
        education and counseling to economically disadvantaged pregnant 
        women, postpartum women, breastfeeding women, infants, and 
        young children under subsection (a)(1).
            ``(2) Cost containment measures regarding procurement of 
        infant formula.--
                    ``(A) In general.--The State shall, with respect to 
                the provision of food assistance to economically 
                disadvantaged pregnant women, postpartum women, 
                breastfeeding women, infants, and young children under 
                subsection (a)(1), establish and carry out a cost 
                containment system for the procurement of infant 
                formula.
                    ``(B) Use of amounts resulting from savings.--The 
                State shall use amounts available to the State as 
                result of savings in costs to the State from the 
                implementation of the cost containment system described 
                in subparagraph (A) for the purpose of providing the 
                assistance described in paragraphs (1) through (5) of 
                subsection (a).
                    ``(C) Annual reports.--The State shall submit to 
                the Secretary for each fiscal year a report 
                containing--
                            ``(i) a description of the cost containment 
                        system for infant formula implemented by the 
                        State in accordance with subparagraph (A) for 
                        such fiscal year; and
                            ``(ii) the estimated amount of savings in 
                        costs derived by the State in providing food 
                        assistance described in such subparagraph under 
                        such cost containment system for such fiscal 
                        year as compared to the amount of such savings 
                        derived by the State under the cost containment 
                        system for the preceding fiscal year, where 
                        appropriate.
            ``(3) Assistance for members of the armed forces and their 
        dependents.--The State shall ensure that assistance described 
        in subsection (a)(1) is provided to members of the Armed Forces 
        and dependents of such members (regardless of the State of 
        residence of such members or dependents) who meet the 
        requirements of such subsection on an equitable basis with 
        assistance provided to all other individuals under such 
        subsection in such State.
    ``(c) Additional Requirement With Respect To Child Care Assistance 
on Military Installations.--
            ``(1) In general.--To the extent consistent with the number 
        of children who are receiving assistance under child care 
        programs established and carried out on military installations 
        in such State by the Department of Defense, the State, after 
        timely and appropriate consultation with representatives of 
        such programs, shall provide assistance to such programs for 
        such children (regardless of the State of residence of such 
        children) in accordance with subsection (a)(3) on an equitable 
        basis with assistance provided in accordance with such 
        subsection to all other child care programs carried out in such 
        State.
            ``(2) Limitation.--In providing assistance to a child care 
        program established and carried out on a military installation 
        under paragraph (1), a State shall not require that such 
        program be licensed under State law if such program is licensed 
        by the Department of Defense.
    ``(d) Authority To Use Amounts for Other Purposes.--
            ``(1) In general.--Subject to paragraphs (2) and (3), a 
        State may use not more than 20 percent of amounts received from 
        a grant under this Act for a fiscal year to carry out a State 
        program pursuant to any or all of the following provisions of 
        law:
                    ``(A) Part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.).
                    ``(B) Part B of title IV of the Social Security Act 
                (42 U.S.C. 621 et seq.).
                    ``(C) Title XX of the Social Security Act (42 
                U.S.C. 1397 et seq.).
                    ``(D) The National School Lunch Act (42 U.S.C. 1751 
                et seq.).
                    ``(E) The Child Care and Development Block Grant 
                Act of 1990 (42 U.S.C. 9858 et seq.).
            ``(2) Sufficient funding determination.--Prior to using any 
        amounts received from a grant under this Act for a fiscal year 
        to carry out a State program pursuant to any or all of the 
        provisions of law described in paragraph (1), the appropriate 
        State agency shall make a determination that sufficient amounts 
        will remain available for such fiscal year to carry out this 
        Act.
            ``(3) Rules governing use of amounts for other purposes.--
        Amounts paid to the State under a grant under this Act that are 
        used to carry out a State program pursuant to a provision of 
        law specified in paragraph (1) shall not be subject to the 
        requirements of this Act, but shall be subject to the same 
        requirements that apply to Federal funds provided directly 
        under the provision of law to carry out the program.

``SEC. 6. REPORTS.

    ``The Secretary may provide a grant under this Act to a State for a 
fiscal year only if the State agrees that
 it will submit, for such fiscal year, a report to the Secretary 
describing--
            ``(1) the number of individuals receiving assistance under 
        the grant in accordance with each of paragraphs (1) through (5) 
        of section 5(a);
            ``(2) the different types of assistance provided to such 
        individuals in accordance with such paragraphs;
            ``(3) the extent to which such assistance was effective in 
        achieving the goals described in section 2(b);
            ``(4) the standards and methods the State is using to 
        ensure the nutritional quality of such assistance, including 
        meals and supplements;
            ``(5) the number of low birthweight births in the State in 
        such fiscal year compared to the number of such births in the 
        State in the previous fiscal year; and
            ``(6) any other information which can be reasonably 
        required by the Secretary.

``SEC. 7. PENALTIES.

    ``(a) Penalty for Use of Amounts in Violation of This Act.--
            ``(1) In general.--The Secretary shall reduce the amounts 
        otherwise payable to a State under a grant under this Act by 
        any amount paid to the State under this Act which an audit 
        conducted pursuant to chapter 75 of title 31, United States 
        Code, finds has been used in violation of this Act.
            ``(2) Limitation.--In carrying out paragraph (1), the 
        Secretary shall not reduce any quarterly payment by more than 
        25 percent.
    ``(b) Penalty for Failure To Submit Required Report.--The Secretary 
shall reduce by 3 percent the amount otherwise payable to a State under 
a grant under this Act for a fiscal year if the Secretary determines 
that the State has not submitted the report required by section 6 for 
the immediately preceding fiscal year, within 6 months after the end of 
the immediately preceding fiscal year.

``SEC. 8. MODEL NUTRITION STANDARDS FOR FOOD ASSISTANCE FOR PREGNANT, 
              POSTPARTUM, AND BREASTFEEDING WOMEN, INFANTS AND 
              CHILDREN.

    ``(a) In General.--Not later than April 1, 1996, the Food and 
Nutrition Board of the Institute of Medicine of the National Academy of 
Sciences, in cooperation with pediatricians, obstetricians, 
nutritionists, and directors of programs providing nutritional risk 
assessment, food assistance, and nutrition education and counseling to 
economically disadvantaged pregnant women, postpartum women, 
breastfeeding women, infants, and young children, shall develop model 
nutrition standards for food assistance provided to such women, 
infants, and children under this Act.
    ``(b) Requirement.--Such model nutrition standards shall require 
that food assistance provided to such women, infants, and children 
contain nutrients that are lacking in the diets of such women, infants, 
and children, as determined by nutritional research.
    ``(c) Report to Congress.--Not later than 1 year after the date on 
which the model nutrition standards are developed under subsection (a), 
the Food and Nutrition Board of the Institute of Medicine of the 
National Academy of Sciences shall prepare and submit to the Congress a 
report regarding the efforts of States to implement such model 
nutrition standards.

``SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this Act $4,606,000,000 for fiscal year 1996, $4,777,000,000 for 
fiscal year 1997, $4,936,000,000 for fiscal year 1998, $5,120,000,000 
for fiscal year 1999, and $5,308,000,000 for fiscal year 2000.
    ``(b) Availability.--Amounts authorized to be appropriated under 
subsection (a) are authorized to remain available until the end of the 
fiscal year subsequent to the fiscal year for which such amounts are 
appropriated.

``SEC. 10. DEFINITIONS.

    ``For purposes of this Act:
            ``(1) Breastfeeding women.--The term `breastfeeding women' 
        means women up to 1 year postpartum who are breastfeeding their 
        infants.
            ``(2) Economically disadvantaged.--The term `economically 
        disadvantaged' means an individual or a family, as the case may 
        be, whose annual income does not exceed 185 percent of the 
        applicable family size income levels contained in the most 
        recent income poverty guidelines prescribed by the Office of 
        Management and Budget and based on data from the Bureau of the 
        Census.
            ``(3) Infants.--The term `infants' means individuals under 
        1 year of age.
            ``(4) Postpartum women.--The term `postpartum women' means 
        women who are in the 180-day period beginning on the 
        termination of pregnancy.
            ``(5) Pregnant women.--The term `pregnant women' means 
        women who have 1 or more fetuses in utero.
            ``(6) School.--The term `school' means a public or private 
        nonprofit elementary, intermediate, or secondary school.
            ``(7) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(8) State.--The term `State' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, 
        American Samoa, Guam, the Virgin Islands, or a tribal 
        organization (as defined in section 4(l) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 
        450b(l))).
            ``(9) Young children.--The term `young children' means 
        individuals who have attained the age of 1 but have not 
        attained the age of 5.''.

        Subchapter B--School-Based Nutrition Block Grant Program

SEC. 14341. AMENDMENT TO NATIONAL SCHOOL LUNCH ACT.

    The National School Lunch Act (42 U.S.C. 1751 et seq.) is amended 
to read as follows:
``SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    ``(a) Short Title.--This Act may be cited as the `National School 
Lunch Act'.
    ``(b) Table of Contents.--The table of contents 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.
``SEC. 2. AUTHORIZATION.

    ``(a) Entitlement.--
            ``(1) In general.--In the case of each State that in 
        accordance with section 4 submits to the Secretary of 
        Agriculture an application for a fiscal year, each such State 
        shall be entitled to receive from the Secretary for such fiscal 
        year a grant for the purpose of achieving the goals described 
        in subsection (b). Subject to paragraph (2), the grant shall 
        consist of the allotment for such State determined under 
        section 3 of the school-based nutrition amount for the fiscal 
        year.
            ``(2) Requirement to provide commodities.--9 percent of the 
        amount of the assistance available under this Act for each 
        State shall be in the form of commodities.
            ``(3) School-based nutrition amount.--
                    ``(A) In general.--For purposes of this Act, the 
                term `school-based nutrition amount' means, subject to 
                the reservation contained in subparagraph (B), 
                $6,681,000,000 for fiscal year 1996, $6,956,000,000 for 
                fiscal year 1997, $7,237,000,000 for fiscal year 1998, 
                $7,538,000,000 for fiscal year 1999, and $7,849,000,000 
                for fiscal year 2000.
                    ``(B) Reservation.--For each fiscal year described 
                in subparagraph (A), the Secretary shall reserve an 
                amount equal to the amount determined under subsection 
                (c) of section 9 for such fiscal year from the school-
                based nutrition amount for the purpose of establishing 
                and carrying out nutritious food service programs at 
                Department of Defense overseas dependents' schools in 
                accordance with such section.
            ``(4) Availability.--Payments under a grant to a State from 
        the allotment determined under section 3 for any fiscal year 
        may be obligated by the State in that fiscal year or in the 
        succeeding fiscal year.
    ``(b) Goals.--The goals of this Act are--
            ``(1) to safeguard the health and well-being of children 
        through the provision of nutritious, well-balanced meals and 
        food supplements;
            ``(2) to provide economically disadvantaged children access 
        to nutritious free or low cost meals, food supplements, and 
        low-cost milk;
            ``(3) to ensure that children served under this Act are 
        receiving the nutrition they require to take advantage of the 
        educational opportunities provided to them;
            ``(4) to emphasize foods which are naturally good sources 
        of vitamins and minerals over foods which have been enriched 
        with vitamins and minerals and are high in fat or sodium 
        content;
            ``(5) to provide a comprehensive school nutrition program 
        for children; and
            ``(6) to minimize paperwork burdens and administrative 
        expenses for participating schools.
    ``(c) Timing of Payments.--The Secretary shall provide payments 
under a grant under this Act to States on a quarterly basis.

``SEC. 3. ALLOTMENT.

    ``The Secretary shall allot the school-based nutrition amount to 
carry out this Act for a fiscal year among the States as follows:
            ``(1) First fiscal year.--
                    ``(A) In general.--With respect to the first fiscal 
                year for which the Secretary provides grants to States 
                under this Act, the amount allotted to each State shall 
                bear the same proportion to such school-based nutrition 
                amount as the aggregate of the amounts described in 
                subparagraph (B) that were received by each such State 
                under the provisions of law described in such 
                subparagraph (as such provisions of law were in effect 
                on the day before the date of the enactment of the 
                Personal Responsibility Act of 1995) for the preceding 
                fiscal year bears to the aggregate of the amounts 
                described in subparagraph (B) that were received by all 
                such States under such provisions of law for such 
                preceding fiscal year.
                    ``(B) Amounts described.--The amounts described in 
                this subparagraph are the following:
                            ``(i) The amount received under the school 
                        breakfast program established under section 4 
                        of the Child Nutrition Act of 1966 (42 U.S.C. 
                        1773).
                            ``(ii) The amount received under the school 
                        lunch program established under this Act (42 
                        U.S.C. 1751 et seq.).
                            ``(iii) 12.5 percent of the sum of the 
                        amounts received under the following programs:
                                    ``(I) The child and adult care food 
                                program under section 17 of this Act 
                                (42 U.S.C. 1766), except for subsection 
                                (o) of such section.
                                    ``(II) The summer food service 
                                program for children established under 
                                section 13 of this Act (42 U.S.C. 
                                1761).
                                    ``(III) The special milk program 
                                established under section 3 of the 
                                Child Nutrition Act of 1966 (42 U.S.C. 
                                1772).
            ``(2) Second fiscal year.--With respect to the second 
        fiscal year for which the Secretary provides grants to States 
        under this Act--
                    ``(A) 95 percent of such school-based nutrition 
                amount shall be allotted among the States by allotting 
                to each State an amount that bears the same proportion 
                to such school-based nutrition amount as the amount 
                allotted to each such State from a grant under this Act 
                for the preceding fiscal year bears to the aggregate of 
                the amounts allotted to all such States from grants 
                under this Act for such preceding fiscal year; and
                    ``(B) 5 percent of such school-based nutrition 
                amount shall be allotted among the States by allotting 
                to each State an amount that bears the same proportion 
                to such school-based nutrition amount as the relative 
                number of meals served during the 1-year period ending 
                on June 30 of the preceding fiscal year in a State from 
                amounts received from a grant under this Act for such 
                preceding fiscal year bears to the total number of 
                meals served in all States from amounts received from 
                grants under this Act for the preceding fiscal year.
            ``(3) Third and fourth fiscal years.--With respect to each 
        of the third and fourth fiscal years for which the Secretary 
        provides grants to States under this Act--
                    ``(A) 90 percent of such school-based nutrition 
                amount shall be allotted among the States by allotting 
                to each State an amount determined in accordance with 
                the formula described in paragraph (2)(A); and
                    ``(B) 10 percent of such school-based nutrition 
                amount shall be allotted among the States by allotting 
                to each State an amount determined in accordance with 
                the formula described in paragraph (2)(B).
            ``(4) Fifth fiscal year.--With respect to the fifth fiscal 
        year for which the Secretary provides grants to States under 
        this Act--
                    ``(A) 85 percent of such school-based nutrition 
                amount shall be allotted among the States by allotting 
                to each State an amount determined in accordance with 
                the formula described in paragraph (2)(A); and
                    ``(B) 15 percent of such school-based nutrition 
                amount shall be allotted among the States by allotting 
                to each State an amount determined in accordance with 
                the formula described in paragraph (2)(B).

``SEC. 4. APPLICATION.

    ``The Secretary may provide a grant under this Act to a State for a 
fiscal year only if the State submits to the Secretary an application 
containing only--
            ``(1) an agreement that the State will use amounts received 
        from such grant in accordance with section 5;
            ``(2) except as provided in paragraph (3), an agreement 
        that the State will set minimum nutritional requirements for 
        meals provided under this Act based on the most recent tested 
        nutritional research available, except that--
                    ``(A) such requirements shall not be construed to 
                prohibit the substitution of foods to accommodate the 
                medical or other special dietary needs of individual 
                students; and
                    ``(B) such requirements shall, at a minimum, be 
                based on--
                            ``(i) the weekly average of the nutrient 
                        content of school lunches; or
                            ``(ii) such other standards as the State 
                        may prescribe;
            ``(3) an agreement that the State, with respect to the 
        provision of meals to students, shall--
                    ``(A) implement the minimum nutritional 
                requirements described in paragraph (2) for such meals; 
                or
                    ``(B) implement the model nutrition standards 
                developed under section 10 for such meals;
            ``(4) an agreement that the State will take such reasonable 
        steps as the State deems necessary to restrict the use and 
        disclosure of information about individuals and families 
        receiving assistance under this Act;
            ``(5) an agreement that the State will use not more than 2 
        percent of the amount of such grant for administrative costs 
        incurred to provide assistance under this Act; and
            ``(6) an agreement that the State will submit to the 
        Secretary a report in accordance with section 6.

``SEC. 5. USE OF AMOUNTS.

    ``(a) In General.--The Secretary may provide a grant under this Act 
to a State only if the State agrees that it will use all amounts 
received from such grant to provide assistance to schools to establish 
and carry out nutritious food service programs that provide affordable 
meals and supplements to students, which may include--
            ``(1) nonprofit school breakfast programs;
            ``(2) nonprofit school lunch programs;
            ``(3) nonprofit before and after school supplement 
        programs;
            ``(4) nonprofit low-cost milk services; and
            ``(5) nonprofit summer meals programs.
    ``(b) Additional Requirements.--
            ``(1) Minimum amount of grant for free or low cost meals or 
        supplements.--In providing assistance to schools to establish 
        and carry out nutritious food service programs in accordance 
        with subsection (a), the State shall ensure that not less than 
        80 percent of the amount of the grant is used to provide free 
        or low cost meals or supplements to economically disadvantaged 
        children.
            ``(2) Provision of food service programs in private 
        nonprofit schools and department of defense domestic 
        dependents' schools.--To the extent consistent with the number 
        of children in the State who are enrolled in private nonprofit 
        schools and Department of Defense domestic dependents' schools, 
        the State, after timely and appropriate consultation with 
        representatives of such schools, as the case may be, shall 
        ensure that nutritious food service programs are established 
        and carried out in such schools in accordance with subsection 
        (a) on an equitable basis with nutritious food service programs 
        established and carried out in public nonprofit schools in the 
        State.
    ``(c) Authority To Use Amounts for Other Purposes.--
            ``(1) In general.--Subject to paragraphs (2) and (3), a 
        State may use not more than 20 percent of amounts received from 
        a grant under this Act for a fiscal year to carry out a State 
        program pursuant to any or all of the following provisions of 
        law:
                    ``(A) Part A of title IV of the Social Security Act 
                (42 U.S.C. 601 et seq.).
                    ``(B) Part B of title IV of the Social Security Act 
                (42 U.S.C. 621 et seq.).
                    ``(C) Title XX of the Social Security Act (42 
                U.S.C. 1397 et seq.).
                    ``(D) The Child Nutrition Act of 1966 (42 U.S.C. 
                1771 et seq.).
                    ``(E) The Child Care and Development Block Grant 
                Act of 1990 (42 U.S.C. 9858 et seq.).
            ``(2) Sufficient funding determination.--Prior to using any 
        amounts received from a grant under this Act for a fiscal year 
        to carry out a State program pursuant to any or all of the 
        provisions of law described in paragraph (1), the appropriate 
        State agency shall make a determination that sufficient amounts 
        will remain available for such fiscal year to carry out this 
        Act.
            ``(3) Rules governing use of amounts for other purposes.--
        Amounts paid to the State under a grant under this Act that are 
        used to carry out a State program pursuant to a provision of 
        law specified in paragraph (1) shall not be subject to the 
        requirements of this Act, but shall be subject to the same 
        requirements that apply to Federal funds provided directly 
        under the provision of law to carry out the program.
    ``(d) Limitation on Provision of Commodities to Certain School 
Districts, Private Nonprofit Schools, and Department of Defense 
Domestic Dependents' Schools.--
            ``(1) In general.--A State may not require a school 
        district, private nonprofit school, or Department of Defense 
        domestic dependents' school described in paragraph (2), except 
        upon the request of such school district, private school, or 
        domestic dependents' school, as the case may be, to accept 
        commodities for use in the food service program of such school 
        district, private school, or domestic dependents' school in 
        accordance with this section. Such school district, private 
        school, or domestic dependents' school may continue to receive 
        commodity assistance in the form that it received such 
        assistance as of January 1, 1987.
            ``(2) School district, private nonprofit school, and 
        department of defense domestic dependents' school described.--A 
        school district, private nonprofit school, or Department of 
        Defense domestic dependents' school described in this paragraph 
        is a school district, private nonprofit school, or Department 
        of Defense domestic dependents' school, as the case may be, 
        that as of January 1, 1987, was receiving all cash payments or 
        all commodity letters of credit in lieu of entitlement 
        commodities for the school lunch program of such school 
        district, private school, or domestic dependents' school under 
        section 18(b) of the National School Lunch Act (42 U.S.C. 1751 
        et seq.), as such section was in effect on the day before the 
        date of the enactment of the Personal Responsibility Act of 
        1995.
    ``(e) Prohibition on Physical Segregation, Overt Identification, or 
Other Discrimination With Respect to Children Eligible for Free or Low 
Cost Meals or Supplements.--In providing assistance to schools to 
establish and carry out nutritious food service programs in accordance 
with subsection (a), the State shall ensure that such schools do not--
            ``(1) physically segregate children eligible to receive 
        free or low cost meals or supplements on the basis of such 
        eligibility;
            ``(2) provide for the overt identification of such children 
        by special tokens or tickets, announced or published list of 
        names, or other means; or
            ``(3) otherwise discriminate against such children.

``SEC. 6. REPORTS.

    ``The Secretary may provide a grant under this Act to a State for a 
fiscal year only if the State agrees that it will submit, for such 
fiscal year, a report to the Secretary describing--
            ``(1) the number of individuals receiving assistance under 
        the grant;
            ``(2) the different types of assistance provided to such 
        individuals;
            ``(3) the total number of meals served to students under 
        the grant, including the percentage of such meals served to 
        economically disadvantaged students;
            ``(4) the extent to which such assistance was effective in 
        achieving the goals described in section 2(b);
            ``(5) the standards and methods the State is using to 
        ensure the nutritional quality of such assistance, including 
        meals and supplements; and
            ``(6) any other information which can be reasonably 
        required by the Secretary.

``SEC. 7. PENALTIES.

    ``(a) Penalty for Use of Amounts in Violation of This Act.--
            ``(1) In general.--The Secretary shall reduce the amounts 
        otherwise payable to a State under a grant under this Act by 
        any amount paid to the State under this Act which an audit 
        conducted pursuant to chapter 75 of title 31, United States 
        Code, finds has been used in violation of this Act.
            ``(2) Limitation.--In carrying out paragraph (1), the 
        Secretary shall not reduce any quarterly payment by more than 
        25 percent.
    ``(b) Penalty for Failure To Submit Required Report.--The Secretary 
shall reduce by 3 percent the amount otherwise payable to a State under 
a grant under this Act for a fiscal year if the Secretary determines 
that the State has not submitted the report required by section 6 for 
the immediately preceding fiscal year, within 6 months after the end of 
the immediately preceding fiscal year.

``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.

    ``(a) In General.--If, by reason of any other provision of law, a 
State is prohibited from providing assistance from amounts received 
from a grant under this Act to private nonprofit schools or Department 
of Defense domestic dependents' schools for a fiscal year to establish 
and carry out nutritious food service programs in such schools in 
accordance with section 5(a), or the Secretary determines that a State 
has substantially failed or is unwilling to provide such assistance to 
such private nonprofit schools or domestic dependents' schools for such 
fiscal year, the Secretary shall, after consultation with appropriate 
representatives of the State and private nonprofit schools or domestic 
dependents' schools, as the case may be, arrange for the provision of 
such assistance to private nonprofit schools or domestic dependents' 
schools in the State for such fiscal year in accordance with the 
requirements of this Act.
    ``(b) Reduction in Amount of State Grant.--If the Secretary 
arranges for the provision of assistance to private nonprofit schools 
or Department of Defense domestic dependents' schools in a State for a 
fiscal year under subsection (a), the amount of the grant for such 
State for such fiscal year shall be reduced by the amount of such 
assistance provided to such private nonprofit schools or domestic 
dependents' schools, as the case may be.

``SEC. 9. FOOD SERVICE PROGRAMS FOR DEPARTMENT OF DEFENSE OVERSEAS 
              DEPENDENTS' SCHOOLS.

    ``(a) In General.--The Secretary shall make available to the 
Secretary of Defense for each fiscal year funds and commodities in an 
amount determined in accordance with subsection (c) for the purpose of 
establishing and carrying out nutritious food service programs that 
provide affordable meals and supplements to students attending 
Department of Defense overseas dependents' schools.
    ``(b) Requirements.--In carrying out nutritious food service 
programs under subsection (a), the Secretary of Defense--
            ``(1) shall ensure that not less than 80 percent of the 
        amount of assistance provided to each school for a fiscal year 
        is used to provide free or low cost meals or supplements to 
        economically disadvantaged children; and
            ``(2) shall ensure that, with respect to the provision of 
        meals to students, each such school will--
                    ``(A) implement minimum nutritional requirements 
                for meals provided under this section based on the most 
                recent tested nutritional research available, except 
                that--
                            ``(i) such requirements shall not be 
                        construed to prohibit the substitution of foods 
                        to accommodate the medical or other special 
                        dietary needs of individual students; and
                            ``(ii) such requirements shall, at a 
                        minimum, be based on--
                                    ``(I) the weekly average of the 
                                nutrient content of school lunches; or
                                    ``(II) such other standards as the 
                                Secretary of Agriculture may prescribe; 
                                or
                    ``(B) implement the model nutrition standards 
                developed under section 10 for such meals.
    ``(c) Amount and Source of Funds and Commodities.--
            ``(1) Amount.--The Secretary, in consultation with the 
        Secretary of Defense, shall determine the amount of funds and 
        commodities necessary for each fiscal year to establish and 
        carry out nutritious food service programs described in 
        subsection (a).
            ``(2) Source.--Such amount of funds and commodities shall 
        consist of the reservation of the school-based nutrition amount 
        in accordance with section 2(a)(3)(B).

``SEC. 10. MODEL NUTRITION STANDARDS FOR MEALS FOR STUDENTS.

    ``(a) Model Nutrition Standards.--Not later than April 1, 1996, the 
Food and Nutrition Board of the Institute of Medicine of the National 
Academy of Sciences, in cooperation with nutritionists and directors of 
programs providing meals to students under this Act, shall develop 
model nutrition standards for meals provided to such students under 
this Act.
    ``(b) Report to Congress.--Not later than 1 year after the date on 
which the model nutrition standards are developed under subsection (a), 
the Food and Nutrition Board of the Institute of Medicine of the 
National Academy of Sciences shall prepare and submit to the Congress a 
report regarding the efforts of States to implement such model 
nutrition standards.

``SEC. 11. DEFINITIONS.

    ``For purposes of this Act:
            ``(1) Department of defense domestic dependents' school.--
        The term `Department of Defense domestic dependents' school' 
        means an elementary or secondary school established pursuant to 
        section 2164 of title 10, United States Code.
            ``(2) Department of defense overseas dependents' school.--
        The term `Department of Defense overseas dependents' school' 
        means a Department of Defense dependents' school which is 
        located outside the United States and the territories or 
        possessions of the United States.
            ``(3) Economically disadvantaged.--The term `economically 
        disadvantaged' means an individual or a family, as the case may 
        be, whose annual income does not exceed 185 percent of the 
        applicable family size income levels contained in the most 
        recent income poverty guidelines prescribed by the Office of 
        Management and Budget and based on data from the Bureau of the 
        Census.
            ``(4) School.--The term `school' means a public or private 
        nonprofit elementary, intermediate, or secondary school.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture.
            ``(6) State.--The term `State' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, 
        American Samoa,
         Guam, the Virgin Islands, or a tribal organization (as defined 
in section 4(l) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450b(l))).''.

                 Subchapter C--Miscellaneous Provisions

SEC. 14361. REPEALERS.

    The following Acts are repealed:
            (1) The Commodity Distribution Reform Act and WIC 
        Amendments of 1987 (Public Law 100-237; 101 Stat. 1733).
            (2) The Child Nutrition and WIC Reauthorization Act of 1989 
        (Public Law 101-147; 103 Stat. 877).

          CHAPTER 3--OTHER REPEALERS AND CONFORMING AMENDMENTS

SEC. 14371. AMENDMENTS TO LAWS RELATING TO CHILD PROTECTION BLOCK 
              GRANT.

    (a) Abandoned Infants Assistance.--
            (1) Repealer.--The Abandoned Infants Assistance Act of 1988 
        (42 U.S.C. 670 note) is repealed.
            (2) Conforming amendment.--Section 421(7) of the Domestic 
        Volunteer Service Act of 1973 (42 U.S.C. 5061(7)) is amended to 
        read as follows:
            ``(7) the term `boarder baby' means an infant who is 
        medically cleared for discharge from an acute-care hospital 
        setting, but remains hospitalized because of a lack of 
        appropriate out-of-hospital placement alternatives;''.
    (b) Child Abuse Prevention and Treatment.--
            (1) Repealer.--The Child Abuse Prevention and Treatment Act 
        (42 U.S.C. 5101 et seq.) is repealed.
            (2) Conforming amendments.--The Victims of Crime Act of 
        1984 (42 U.S.C. 10601 et seq.) is amended--
                    (A) in section 1402--
                            (i) in subsection (d)--
                                    (I) by striking paragraph (2);
                                    (II) by redesignating paragraphs 
                                (3) and (4) as paragraphs (2) and (3), 
                                respectively; and
                                    (III) in paragraph (2) (as 
                                redesignated by subclause (II))--
                                            (aa) in subparagraph (A), 
                                        by striking the semicolon at 
                                        the end and inserting ``; 
                                        and'';
                                            (bb) by striking 
                                        subparagraph (B); and
                                            (cc) by redesignating 
                                        subparagraph (C) as 
                                        subparagraph (B); and
                            (ii) by striking subsection (g); and
                    (B) by striking section 1404A.
    (c) Adoption Opportunities.--The Child Abuse Prevention and 
Treatment and Adoption Reform Act of 1978 (42 U.S.C. 5111 et seq.) is 
repealed.
    (d) Crisis Nurseries.--The Temporary Child Care for Children with 
Disabilities and Crisis Nurseries Act of 1986 (42 U.S.C. 5117 et seq.) 
is amended--
            (1) in the title heading by striking ``AND CRISIS 
        NURSERIES'';
            (2) in section 201 by striking ``and Crisis Nurseries'';
            (3) in section 202--
                    (A) by striking ``provide: (A) temporary'' and 
                inserting ``to provide temporary''; and
                    (B) by striking ``children, and (B)'' and all that 
                follows through the period and inserting ``children.'';
            (4) by striking section 204; and
            (5) in section 205--
                    (A) in subsection (a)--
                            (i) in paragraph (1)(A) by striking ``or 
                        204''; and
                            (ii) in paragraph (2)--
                                    (I) by striking subparagraph (D); 
                                and
                                    (II) by redesignating subparagraph 
                                (E) as subparagraph (D);
                    (B) by striking subsection (b)(3); and
                    (C) in subsection (d)--
                            (i) by striking paragraph (3); and
                            (ii) by redesignating paragraphs (4) and 
                        (5) as paragraph (3) and (4), respectively.
    (e) Missing Children's Assistance Act.--The Missing Children's 
Assistance Act (42 U.S.C. 5771-5779) is repealed.
    (f) Family Support Centers.--Subtitle F of title VII of the Stewart 
B. McKinney Homeless Assistance Act (42 U.S.C. 11481-11489) is 
repealed.
    (g) Investigation and Prosecution of Child Abuse Cases.--Subtitle A 
of title II of the Victims of Child Abuse Act of 1990 (42 U.S.C. 13001-
13004) is repealed.
    (h) Repeal of Family Unification Program.--Subsection (x) of 
section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f(x)) 
is repealed.

                     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.

    (a) In General.--The Secretary shall, to the extent feasible, 
produce and publish for each State, county, and local unit of general 
purpose government for which data have been compiled in the then most 
recent census of population under section 141(a) of title 13, United 
States Code, and for each school district, data relating to the 
incidence of poverty. Such data may be produced by means of sampling, 
estimation, or any other method that the Secretary determines will 
produce current, comprehensive, and reliable data.
    (b) Content; Frequency.--Data under this section--
            (1) shall include--
                    (A) for each school district, the number of 
                children age 5 to 17, inclusive, in families below the 
                poverty level; and
                    (B) for each State and county referred to in 
                subsection (a), the number of individuals age 65 or 
                older below the poverty level; and
            (2) shall be published--
                    (A) for each State, county, and local unit of 
                general purpose government referred to in subsection 
                (a), in 1996 and at least every second year thereafter; 
                and
                    (B) for each school district, in 1998 and at least 
                every second year thereafter.
    (c) Authority To Aggregate.--
            (1) In general.--If reliable data could not otherwise be 
        produced, the Secretary may, for purposes of subsection 
        (b)(1)(A), aggregate school districts, but only to the extent 
        necessary to achieve reliability.
            (2) Information relating to use of authority.--Any data 
        produced under this subsection shall be appropriately 
        identified and shall be accompanied by a detailed explanation 
        as to how and why aggregation was used (including the measures 
        taken to minimize any such aggregation).
    (d) Report To Be Submitted Whenever Data Is Not Timely Published.--
If the Secretary is unable to produce and publish the data required 
under this section for any State, county, local unit of general purpose 
government, or school district in any year specified in subsection 
(b)(2), a report shall be submitted by the Secretary to the President 
of the Senate and the Speaker of the House of Representatives, not 
later than 90 days before the start of the following year, enumerating 
each government or school district excluded and giving the reasons for 
the exclusion.
    (e) Criteria Relating to Poverty.--In carrying out this section, 
the Secretary shall use the same criteria relating to poverty as were 
used in the then most recent census of population under section 141(a) 
of title 13, United States Code (subject to such periodic adjustments 
as may be necessary to compensate for inflation and other similar 
factors).
    (f) Consultation.--The Secretary shall consult with the Secretary 
of Education in carrying out the requirements of this section relating 
to school districts.
    (g) Definition.--For the purpose of this section, the term 
``Secretary'' means the Secretary of Health and Human Services.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $1,500,000 for each of fiscal 
years 1996 through 2000.

SEC. 14382. DATA ON PROGRAM PARTICIPATION AND OUTCOMES.

    (a) In General.--The Secretary shall produce data relating to 
participation in programs authorized by this Act by families and 
children. Such data may be produced by means of sampling, estimation, 
or any other method that the Secretary determines will produce 
comprehensive and reliable data.
    (b) Content.--Data under this section shall include, but not be 
limited to--
            (1) changes in participation in welfare, health, education, 
        and employment and training programs, for families and 
        children, the duration of such participation, and the causes 
        and consequences of any changes in program participation;
            (2) changes in employment status, income and poverty 
        status, family structure and process, and children's well-
        being, over time, for families and children participating in 
        Federal programs and, if appropriate, other low-income families 
        and children, and the causes and consequences of such changes; 
        and
            (3) demographic data, including household composition, 
        marital status, relationship of householders, racial and ethnic 
        designation, age, and educational attainment.
    (c) Frequency.--Data under this section shall reflect the period 
1993 through 2002, and shall be published as often as practicable 
during that time, but in any event no later than December 31, 2003.
    (d) Definition.--For the purpose of this section, the term 
``Secretary'' means the Secretary of Health and Human Services.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $2,500,000 in fiscal year 1996, 
$10,000,000 for each of fiscal years 1997 through 2002, and $2,000,000 
for fiscal year 2003.

      CHAPTER 5--GENERAL EFFECTIVE DATE; PRESERVATION OF ACTIONS, 
                        OBLIGATIONS, AND RIGHTS

SEC. 14391. EFFECTIVE DATE.

    Except as otherwise provided in this subtitle, this subtitle and 
the amendments made by this subtitle shall take effect on October 1, 
1995.

SEC. 14392. APPLICATION OF AMENDMENTS AND REPEALERS.

    An amendment or repeal made by this subtitle shall not apply with 
respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to financial assistance provided 
        before the effective date of amendment or repeal, as the case 
        may be, under the Act so amended or so repealed; and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such Act.
     Subtitle D--Restricting Welfare and Public Benefits for Aliens
SEC. 14400. STATEMENTS OF NATIONAL POLICY CONCERNING WELFARE AND 
              IMMIGRATION.

    The Congress makes the following statements concerning national 
policy with respect to welfare and immigration:
            (1) Self-sufficiency has been a basic principle of United 
        States immigration law since this country's earliest 
        immigration statutes.
            (2) It continues to be the immigration policy of the United 
        States that--
                    (A) aliens within the nation's borders not depend 
                on public resources to meet their needs, but rather 
                rely on their own capabilities and the resources of 
                their families, their sponsors, and private 
                organizations, and
                    (B) the availability of public benefits not 
                constitute an incentive for immigration to the United 
                States.
            (3) Despite the principle of self-sufficiency, aliens have 
        been applying for and receiving public benefits from Federal, 
        State, and local governments at increasing rates.
            (4) Current eligibility rules for public assistance and 
        unenforceable financial support agreements have proved wholly 
        incapable of assuring that individual aliens not burden the 
        public benefits system.
            (5) It is a compelling government interest to enact new 
        rules for eligibility and sponsorship agreements in order to 
        assure that aliens be self-reliant in accordance with national 
        immigration policy.
            (6) It is a compelling government interest to remove the 
        incentive for illegal immigration provided by the availability 
        of public benefits.

          CHAPTER 1--ELIGIBILITY FOR FEDERAL BENEFITS PROGRAMS

SEC. 14401. INELIGIBILITY OF ILLEGAL ALIENS FOR CERTAIN PUBLIC BENEFITS 
              PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsections (b) and (c), any alien who is not 
lawfully present in the United States shall not be eligible for any 
Federal means-tested public benefits program (as defined in section 
14431(d)(2)).
    (b) Exception for Emergency Assistance.--Subsection (a) shall not 
apply to the provision of noncash, in-kind emergency assistance 
(including emergency medical services).
    (c) Treatment of Housing-related Assistance.--Subsection (a) shall 
not apply to any program for housing or community development 
assistance administered by the Secretary of Housing and Urban 
Development, any program under title V of the Housing Act of 1949, or 
any assistance under section 306C of the Consolidated Farm and Rural 
Development Act, except that in the case of financial assistance (as 
defined in section 214(b) of the Housing and Community Development Act 
of 1980), the provisions of section 214 of such Act shall apply instead 
of subsection (a).

SEC. 14402. INELIGIBILITY OF NONIMMIGRANTS FOR CERTAIN PUBLIC BENEFITS 
              PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsections (b) and (c), any alien who is 
lawfully present in the United States as a nonimmigrant shall not be 
eligible for any Federal means-tested public benefits program.
    (b) Exceptions.--
            (1) Emergency assistance.--Subsection (a) shall not apply 
        to the provision of non-cash, in-kind emergency assistance 
        (including emergency medical services).
            (2) Aliens granted asylum.--Subsection (a) shall not apply 
        to an alien who is granted asylum under section 208 of the 
        Immigration and Nationality Act or whose deportation has been 
        withheld under section 243(h) of such Act.
            (3) Treatment of temporary agricultural workers.--
        Subsection (a) shall not apply to a nonimmigrant admitted as a 
        temporary agricultural worker under section 
        101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act or 
        as the spouse or minor child of such a worker under section 
        101(a)(15)(H)(iii) of such Act.
    (c) Treatment of Housing-related Assistance.--Subsection (a) shall 
not apply to any program for housing or community development 
assistance administered by the Secretary of Housing and Urban 
Development, any program under title V of the Housing Act of 1949, or 
any assistance under section 306C of the Consolidated Farm and Rural 
Development Act, except that in the case of financial assistance (as 
defined in section 214(b) of the Housing and Community Development Act 
of 1980), the provisions of section 214 of such Act shall apply instead 
of subsection (a).
    (d) Treatment of Aliens Paroled into the United States.--An alien 
who is paroled into the United States under section 212(d)(5) of the 
Immigration and Nationality Act for a period of less than 1 year shall 
be considered, for purposes of this chapter, to be lawfully present in 
the United States as a nonimmigrant.

SEC. 14403. LIMITED ELIGIBILITY OF IMMIGRANTS FOR 5 SPECIFIED FEDERAL 
              PUBLIC BENEFITS PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (b), any alien who is lawfully present 
in the United States shall not be eligible for any of the following 
Federal means-tested public benefits programs:
            (1) SSI.--The supplemental security income program under 
        title XVI of the Social Security Act.
            (2) Temporary assistance for needy families.--The program 
        of block grants to States for temporary assistance for needy 
        families under part A of title IV of the Social Security Act.
            (3) Social services block grant.--The program of block 
        grants to States for social services under title XX of the 
        Social Security Act.
            (4) Medicaid.--The program of medical assistance under 
        title XIX of the Social Security Act.
            (5) Consolidated food assistance program.--The consolidated 
        program of food assistance under chapter 2 of subtitle E of 
        this title.
    (b) Exceptions.--
            (1) Time-limited exception for refugees.--Subsection (a) 
        shall not apply to an alien admitted to the United States as a 
        refugee under section 207 of the Immigration and Nationality 
        Act until 5 years after the date of such alien's arrival into 
        the United States.
            (2) Certain long-term, permanent resident, aged aliens.--
        Subsection (a) shall not apply to an alien who--
                    (A) has been lawfully admitted to the United States 
                for permanent residence;
                    (B) is over 75 years of age; and
                    (C) has resided in the United States for at least 5 
                years.
            (3) Veteran and active duty exception.--Subsection (a) 
        shall not apply to an alien who is
         lawfully residing in any State (or any territory or possession 
of the United States) and is--
                    (A) a veteran (as defined in section 101 of title 
                38, United States Code) with a discharge characterized 
                as an honorable discharge,
                    (B) on active duty (other than active duty for 
                training) in the Armed Forces of the United States, or
                    (C) the spouse or unmarried dependent child of an 
                individual described in subparagraph (A) or (B).
        Subparagraph (A) shall not apply in the case of a veteran who 
        has been separated from military service on account of 
        alienage.
            (4) Emergency assistance.--Subsection (a) shall not apply 
        to the provision of non-cash, in-kind emergency assistance 
        (including emergency medical services).
            (5) Transition for current beneficiaries.--Subsection (a) 
        shall not apply to the eligibility of an alien for a program 
        until 1 year after the date of the enactment of this Act if, on 
        such date of enactment, the alien is lawfully residing in any 
        State or any territory or possession of the United States and 
        is eligible for the program.
            (6) Certain permanent resident and disabled aliens.--
        Subsection (a) shall not apply to an alien who--
                    (A) has been lawfully admitted to the United States 
                for permanent residence; and
                    (B) is unable because of physical or developmental 
                disability or mental impairment (including Alzheimer's 
                disease) to comply with the naturalization requirements 
                of section 312(a) of the Immigration and Naturalization 
                Act.

SEC. 14404. NOTIFICATION.

    Each Federal agency that administers a program to which section 
14401, 14402, or 14403 applies shall, directly or through the States, 
post information and provide general notification to the public and to 
program recipients of the changes regarding eligibility for any such 
program pursuant to this chapter.

  CHAPTER 2--ELIGIBILITY FOR STATE AND LOCAL PUBLIC BENEFITS PROGRAMS
SEC. 14411. INELIGIBILITY OF ILLEGAL ALIENS FOR STATE AND LOCAL PUBLIC 
              BENEFITS PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as otherwise provided in this section, no alien who is not 
lawfully present in the United States (as determined in accordance with 
regulations of the Attorney General) shall be eligible for any State 
means-tested public benefits program (as defined in section 
14431(d)(3)).
    (b) Exception for Emergency Assistance.--Subsection (a) shall not 
apply to the provision of non-cash, in-kind emergency assistance 
(including emergency medical services).
SEC. 14412. INELIGIBILITY OF NONIMMIGRANTS FOR STATE AND LOCAL PUBLIC 
              BENEFITS PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as otherwise provided in this section, no alien who is lawfully 
present in the United States as a nonimmigrant shall be eligible for 
any State means-tested public benefits program (as defined in section 
14431(d)(3)).
    (b) Exceptions.--
            (1) Emergency assistance.--The limitations under subsection 
        (a) shall not apply to the provision of non-cash, in-kind 
        emergency assistance (including emergency medical services).
            (2) Aliens granted asylum.--Subsection (a) shall not apply 
        to an alien who is granted asylum under section 208 of the 
        Immigration and Nationality Act or whose deportation has been 
        withheld under section 243(h) of such Act.
            (3) Treatment of temporary agricultural workers.--
        Subsection (a) shall not apply to a nonimmigrant admitted as a 
        temporary agricultural worker under section 
        101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act or 
        as the spouse or minor child of such a worker under section 
        101(a)(15)(H)(iii) of such Act.
    (c) Treatment of Aliens Paroled into the United States.--An alien 
who is paroled into the United States under section 212(d)(5) of the 
Immigration and Nationality Act for a period of less than 1 year shall 
be considered, for purposes of this chapter, to be lawfully present in 
the United States as a nonimmigrant.
SEC. 14413. STATE AUTHORITY TO LIMIT ELIGIBILITY OF IMMIGRANTS FOR 
              STATE AND LOCAL MEANS-TESTED PUBLIC BENEFITS PROGRAMS.

    (a) In General.--Notwithstanding any other provision of law and 
except as otherwise provided in this section or section 14412, a State 
is authorized to determine eligibility requirements for aliens who are 
lawfully present in the United States for any State means-tested public 
benefits program.
    (b) Exceptions.--
            (1) Time-limited exception for refugees.--The authority 
        under subsection (a) shall not apply to an alien admitted to 
        the United States as a refugee under section 207 of the 
        Immigration and Nationality Act until 5 years after the date of 
        such alien's arrival into the United States.
            (2) Certain long-term, permanent resident, aged aliens.--
        The authority under subsection (a) shall not apply to an alien 
        who--
                    (A) has been lawfully admitted to the United States 
                for permanent residence;
                    (B) is over 75 years of age; and
                    (C) has resided in the United States for at least 5 
                years.
            (3) Veteran and active duty exception.--The authority under 
        subsection (a) shall not apply to an alien who is lawfully 
        residing in any State (or any territory or possession of the 
        United States) and is--
                    (A) a veteran (as defined in section 101 of title 
                38, United States Code) with a discharge characterized 
                as an honorable discharge,
                    (B) on active duty (other than active duty for 
                training) in the Armed Forces of the United States, or
                    (C) the spouse or unmarried dependent child of an 
                individual described in subparagraph (A) or (B).
        Subparagraph (A) shall not apply in the case of a veteran who 
        has been separated from military service on account of 
        alienage.
            (4) Emergency assistance.--The authority under subsection 
        (a) shall not apply to the provision of non-cash, in-kind 
        emergency assistance (including emergency medical services).
            (5) Transition.--The authority under subsection (a) shall 
        not apply to eligibility of an alien for a State means-tested 
        public benefits program until 1 year after the date of the 
        enactment of this Act if, on such date of enactment, the alien 
        is lawfully present in the United States and is eligible for 
        benefits under the program. Nothing in the previous sentence is 
        intended to address alien eligibility for such a program before 
        the date of the enactment of this Act.

       CHAPTER 3--ATTRIBUTION OF INCOME AND AFFIDAVITS OF SUPPORT
SEC. 14421. ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO FAMILY-
              SPONSORED IMMIGRANTS.

    (a) In General.--Notwithstanding any other provision of law and 
except as provided in subsection (c), in determining the eligibility 
and the amount of benefits of an alien for any means-tested public 
benefits program (as defined in section 14431(d)) the income and 
resources of the alien shall be deemed to include--
            (1) the income and resources of any person who executed an 
        affidavit of support pursuant to section 213A of the 
        Immigration and Nationality Act (as added by section 14422) in 
        behalf of such alien, and
            (2) the income and resources of the spouse (if any) of the 
        person.
    (b) Application.--Subsection (a) shall apply with respect to an 
alien until such time as the alien achieves United States citizenship 
through naturalization pursuant to chapter 2 of title III of the 
Immigration and Nationality Act.
    (c) Exception for Housing-related Assistance.--Subsection (a) shall 
not apply to any program for housing or community development 
assistance administered by the Secretary of Housing and Urban 
Development, any program under title V of the Housing Act of 1949, or 
any assistance under section 306C of the Consolidated Farm and Rural 
Development Act.

SEC. 14422. REQUIREMENTS FOR SPONSOR'S AFFIDAVIT OF SUPPORT.

    (a) In General.--Title II of the Immigration and Nationality Act is 
amended by inserting after section 213 the following new section:
           ``requirements for sponsor's affidavit of support

    ``Sec. 213A. (a) Enforceability.--No affidavit of support may be 
accepted by the Attorney General or by any consular officer to 
establish that an alien is not excludable as a public charge under 
section 212(a)(4) unless such affidavit is executed as a contract--
            ``(1) which is legally enforceable against the sponsor by 
        the Federal Government and by any State (or any political 
        subdivision of such State) which provides any means-tested 
        public benefits program, but not later than 10 years after the 
        alien last receives any such benefit; and
            ``(2) in which the sponsor agrees to submit to the 
        jurisdiction of any Federal or State court for the purpose of 
        actions brought under subsection (e)(2).
Such contract shall be enforceable with respect to benefits provided to 
the alien until such time as the alien achieves United States 
citizenship through naturalization pursuant to chapter 2 of title III.
    ``(b) Forms.--Not later than 90 days after the date of enactment of 
this section, the Attorney General, in consultation with the Secretary 
of State and the Secretary of Health and Human Services, shall 
formulate an affidavit of support consistent with the provisions of 
this section.
    ``(c) Statutory Construction.--Nothing in this section shall be 
construed to grant third party beneficiary rights to any sponsored 
alien under an affidavit of support.
    ``(d) Notification of Change of Address.--(1) The sponsor shall 
notify the Federal Government and the State in which the sponsored 
alien is currently resident within 30 days of any change of address of 
the sponsor during the period specified in subsection (a)(1).
    ``(2) Any person subject to the requirement of paragraph (1) who 
fails to satisfy such requirement shall be subject to a civil penalty 
of--
            ``(A) not less than $250 or more than $2,000, or
            ``(B) if such failure occurs with knowledge that the 
        sponsored alien has received any benefit under any means-tested 
        public benefits program, not less than $2,000 or more than 
        $5,000.
    ``(e) Reimbursement of Government Expenses.--(1)(A) Upon 
notification that a sponsored alien has received any benefit under any 
means-tested public benefits program, the appropriate Federal, State, 
or local official shall request reimbursement by the sponsor in the 
amount of such assistance.
    ``(B) The Attorney General, in consultation with the Secretary of 
Health and Human Services, shall prescribe such regulations as may be 
necessary to carry out subparagraph (A).
    ``(2) If within 45 days after requesting reimbursement, the 
appropriate Federal, State, or local agency has not received a response 
from the sponsor indicating a willingness to commence payments, an 
action may be brought against the sponsor pursuant to the affidavit of 
support.
    ``(3) If the sponsor fails to abide by the repayment terms 
established by such agency, the agency may, within 60 days of such 
failure, bring an action against the sponsor pursuant to the affidavit 
of support.
    ``(4) No cause of action may be brought under this subsection later 
than 10 years after the alien last received any benefit under any 
means-tested public benefits program.
    ``(f) Definitions.--For the purposes of this section--
            ``(1) Sponsor.--The term `sponsor' means an individual 
        who--
                    ``(A) is a citizen or national of the United States 
                or an alien who is lawfully admitted to the United 
                States for permanent residence;
                    ``(B) is 18 years of age or over; and
                    ``(C) is domiciled in any State.
            ``(2) Means-tested public benefits program.--The term 
        `means-tested public benefits program' means a program of 
        public benefits (including cash, medical, housing, and food 
        assistance and social services) of the Federal Government or of 
        a State or political subdivision of a State in which the 
        eligibility of an individual, household, or family eligibility 
        unit for benefits under the program, or the amount of such 
        benefits, or both are determined on the basis of income, 
        resources, or financial need of the individual, household, or 
        unit.''.
    (b) Clerical Amendment.--The table of contents of such Act is 
amended by inserting after the item relating to section 213 the 
following:

``Sec. 213A. Requirements for sponsor's affidavit of support.''.
    (c) Effective Date.--Subsection (a) of section 213A of the 
Immigration and Nationality Act, as inserted by subsection (a) of this 
section, shall apply to affidavits of support executed on or after a 
date specified by the Attorney General, which date shall be not earlier 
than 60 days (and not later than 90 days) after the date the Attorney 
General formulates the form for such affidavits under subsection (b) of 
such section.

                     CHAPTER 4--GENERAL PROVISIONS

SEC. 14431. DEFINITIONS.

    (a) In General.--Except as otherwise provided in this section, the 
terms used in this subtitle have the same meaning given such terms in 
section 101(a) of the Immigration and Nationality Act.
    (b) Lawful Presence.--For purposes of this subtitle, the 
determination of whether an alien is lawfully present in the United 
States shall be made in accordance with regulations of the Attorney 
General. An alien shall not be considered to be lawfully present in the 
United States for purposes of this subtitle merely because the alien 
may be considered to be permanently residing in the United States under 
color of law for purposes of any particular program.
    (c) State.--As used in this subtitle, the term ``State'' includes 
the District of Columbia, Puerto Rico, the Virgin Islands, Guam, the 
Northern Mariana Islands, and American Samoa.
    (d) Public Benefits Programs.--As used in this subtitle--
            (1) Means-tested program.--The term ``means-tested public 
        benefits program'' means a program of public benefits 
        (including cash, medical, housing, and food assistance and 
        social services) of the Federal Government or of a State or 
        political subdivision of a State in which the eligibility of an 
        individual, household, or family eligibility unit for benefits 
        under the program, or the amount of such benefits, or both are 
        determined on the basis of income, resources, or financial need 
        of the individual, household, or unit.
            (2) Federal means-tested public benefits program.--The term 
        ``Federal means-tested public benefits program'' means a means-
        tested public benefits program of (or contributed to by) the 
        Federal Government and under which the Federal Government has 
        specified standards for eligibility and includes the programs 
        specified in section 14403(a).
            (3) State means-tested public benefits program.--The term 
        ``State means-tested public benefits program'' means a means-
        tested public benefits program of a State or political 
        subdivision of a State under which the State or political 
        subdivision specifies the standards for eligibility, and does 
        not include any Federal means-tested public benefits program.
SEC. 14432. CONSTRUCTION.

    Nothing in this subtitle shall be construed as addressing alien 
eligibility for governmental programs that are not means-tested public 
benefits programs.

                    CHAPTER 5--CONFORMING AMENDMENTS
SEC. 14441. CONFORMING AMENDMENTS RELATING TO ASSISTED HOUSING.

    (a) Limitations on Assistance.--Section 214 of the Housing and 
Community Development Act of 1980 (42 U.S.C. 1436a) is amended--
            (1) by striking ``Secretary of Housing and Urban 
        Development'' each place it appears and inserting ``applicable 
        Secretary'';
            (2) in subsection (b), by inserting after ``National 
        Housing Act,'' the following: ``the direct loan program under 
        section 502 of the Housing Act of 1949 or section 502(c)(5)(D), 
        504, 521(a)(2)(A), or 542 of such Act, subtitle A of title III 
        of the Cranston-Gonzalez National Affordable Housing Act,'';
            (3) in paragraphs (2) through (6) of subsection (d), by 
        striking ``Secretary'' each place it appears and inserting 
        ``applicable Secretary'';
            (4) in subsection (d), in the matter following paragraph 
        (6), by striking ``the term `Secretary''' and inserting ``the 
        term `applicable Secretary'''; and
            (5) by adding at the end the following new subsection:
    ``(h) For purposes of this section, the term `applicable Secretary' 
means--
            ``(1) the Secretary of Housing and Urban Development, with 
        respect to financial assistance administered by such Secretary 
        and financial assistance under subtitle A of title III of the 
        Cranston-Gonzalez National Affordable Housing Act; and
            ``(2) the Secretary of Agriculture, with respect to 
        financial assistance administered by such Secretary.''.
    (b) Conforming Amendments.--Section 501(h) of the Housing Act of 
1949 (42 U.S.C. 1471(h)) is amended--
            (1) by striking ``(1)'';
            (2) by striking ``by the Secretary of Housing and Urban 
        Development''; and
            (3) by striking paragraph (2).
        Subtitle E--Food Stamp Reform and Commodity Distribution

SEC. 14501. SHORT TITLE.

    This subtitle may be cited as the ``Food Stamp Reform and Commodity 
Distribution Act''.

              CHAPTER 1--COMMODITY DISTRIBUTION PROVISIONS

SEC. 14511. SHORT TITLE.

    This chapter may be cited as the ``Commodity Distribution Act of 
1995''.

SEC. 14512. AVAILABILITY OF COMMODITIES.

    (a) Notwithstanding any other provision of law, the Secretary of 
Agriculture (hereinafter in this chapter referred to as the 
``Secretary'') is authorized during fiscal years 1996 through 2000 to 
purchase a variety of nutritious and useful commodities and distribute 
such commodities to the States for distribution in accordance with this 
chapter.
    (b) In addition to the commodities described in subsection (a), the 
Secretary may expend funds made available to carry out section 32 of 
the Act of August 24, 1935 (7 U.S.C. 612c), which are not expended or 
needed to carry out such sections, to purchase, process, and distribute 
commodities of the types customarily purchased under such section to 
the States for distribution in accordance with this chapter.
    (c) In addition to the commodities described in subsections (a) and 
(b), agricultural commodities and the products thereof made available 
under clause (2) of the second sentence of section 32 of the Act of 
August 24, 1935 (7 U.S.C. 612c), may be made available by the Secretary 
to the States for distribution in accordance with this chapter.
    (d) In addition to the commodities described in subsections (a), 
(b), and (c), commodities acquired by the Commodity Credit Corporation 
that the Secretary determines, in the discretion of the Secretary, are 
in excess of quantities needed to--
            (1) carry out other domestic donation programs;
            (2) meet other domestic obligations;
            (3) meet international market development and food aid 
        commitments; and
            (4) carry out the farm price and income stabilization 
        purposes of the Agricultural Adjustment Act of 1938, the 
        Agricultural Act of 1949, and the Commodity Credit Corporation 
        Charter Act;
shall be made available by the Secretary, without charge or credit for 
such commodities, to the States for distribution in accordance with 
this chapter.
    (e) During each fiscal year, the types, varieties, and amounts of 
commodities to be purchased under this chapter shall be determined by 
the Secretary. In purchasing such commodities, except those commodities 
purchased pursuant to section 14520, the Secretary shall, to the extent 
practicable and appropriate, make purchases based on--
            (1) agricultural market conditions;
            (2) the preferences and needs of States and distributing 
        agencies; and
            (3) the preferences of the recipients.
SEC. 14513. STATE, LOCAL AND PRIVATE SUPPLEMENTATION OF COMMODITIES.

    (a) The Secretary shall establish procedures under which State and 
local agencies, recipient agencies, or any other entity or person may 
supplement the commodities distributed under this chapter for use by 
recipient agencies with nutritious and wholesome commodities that such 
entities or persons donate for distribution, in all or part of the 
State, in addition to the commodities otherwise made available under 
this chapter.
    (b) States and eligible recipient agencies may use--
            (1) the funds appropriated for administrative cost under 
        section 14519(b);
            (2) equipment, structures, vehicles, and all other 
        facilities involved in the storage, handling, or distribution 
        of commodities made available under this chapter; and
            (3) the personnel, both paid or volunteer, involved in such 
        storage, handling, or distribution;
to store, handle or distribute commodities donated for use under 
subsection (a).
    (c) States and recipient agencies shall continue, to the maximum 
extent practical, to use volunteer workers, and commodities and other 
foodstuffs donated by charitable and other organizations, in the 
distribution of commodities under this chapter.

SEC. 14514. STATE PLAN.

    (a) A State seeking to receive commodities under this chapter shall 
submit a plan of operation and administration every four years to the 
Secretary for approval. The plan may be amended at any time, with the 
approval of the Secretary.
    (b) The State plan, at a minimum, shall--
            (1) designate the State agency responsible for distributing 
        the commodities received under this chapter;
            (2) set forth a plan of operation and administration to 
        expeditiously distribute commodities under this chapter in 
        quantities requested to eligible recipient agencies in 
        accordance with sections 14516 and 14520;
            (3) set forth the standards of eligibility for recipient 
        agencies; and
            (4) set forth the standards of eligibility for individual 
        or household recipients of commodities, which at minimum shall 
        require--
                    (A) individuals or households to be comprised of 
                needy persons; and
                    (B) individual or household members to be residing 
                in the geographic location served by the distributing 
                agency at the time of application for assistance.
    (c) The Secretary shall encourage each State receiving commodities 
under this chapter to establish a State advisory board consisting of 
representatives of all interested entities, both public and private, in 
the distribution of commodities received under this chapter in the 
State.
    (d) A State agency receiving commodities under this chapter may--
            (1)(A) enter into cooperative agreements with State 
        agencies of other States to jointly provide
         commodities received under this chapter to eligible recipient 
agencies that serve needy persons in a single geographical area which 
includes such States; or
            (B) transfer commodities received under this chapter to any 
        such eligible recipient agency in the other State under such 
        agreement; and
            (2) advise the Secretary of an agreement entered into under 
        this subsection and the transfer of commodities made pursuant 
        to such agreement.

SEC. 14515. ALLOCATION OF COMMODITIES TO STATES.

    (a) In each fiscal year, except for those commodities purchased 
under section 14520, the Secretary shall allocate the commodities 
distributed under this chapter as follows:
            (1) 60 percent of the such total value of commodities shall 
        be allocated in a manner such that the value of commodities 
        allocated to each State bears the same ratio to 60 percent of 
        such total value as the number of persons in households within 
        the State having incomes below the poverty line bears to the 
        total number of persons in households within all States having 
        incomes below such poverty line. Each State shall receive the 
        value of commodities allocated under this paragraph.
            (2) 40 percent of such total value of commodities shall be 
        allocated in a manner such that the value of commodities 
        allocated to each State bears the same ratio to 40 percent of 
        such total value as the average monthly number of unemployed 
        persons within the State bears to the average monthly number of 
        unemployed persons within all States during the same fiscal 
        year. Each State shall receive the value of commodities 
        allocated to the State under this paragraph.
    (b)(1) The Secretary shall notify each State of the amount of 
commodities that such State is allotted to receive under subsection (a) 
or this subsection, if applicable. Each State shall promptly notify the 
Secretary if such State determines that it will not accept any or all 
of the commodities made available under such allocation. On such a 
notification by a State, the Secretary shall reallocate and distribute 
such commodities as the Secretary deems appropriate and equitable. The 
Secretary shall further establish procedures to permit States to 
decline to receive portions of such allocation during each fiscal year 
as the State determines is appropriate and the Secretary shall 
reallocate and distribute such allocation as the Secretary deems 
appropriate and equitable.
    (2) In the event of any drought, flood, hurricane, or other natural 
disaster affecting substantial numbers of persons in a State, county, 
or parish, the Secretary may request that States unaffected by such a 
disaster consider assisting affected States by allowing the Secretary 
to reallocate commodities from such unaffected State to States 
containing areas adversely affected by the disaster.
    (c) Purchases of commodities under this chapter shall be made by 
the Secretary at such times and under such conditions as the Secretary 
determines appropriate within each fiscal year. All commodities so 
purchased for each such fiscal year shall be delivered at reasonable 
intervals to States based on the allocations and reallocations made 
under subsections (a) and (b), and or carry out section 14520, not 
later than December 31 of the following fiscal year.
SEC. 14516. PRIORITY SYSTEM FOR STATE DISTRIBUTION OF COMMODITIES.

    (a) In distributing the commodities allocated under subsections (a) 
and (b) of section 14515, the State agency, under procedures determined 
by the State agency, shall offer, or otherwise make available, its full 
allocation of commodities for distribution to emergency feeding 
organizations.
    (b) If the State agency determines that the State will not exhaust 
the commodities allocated under subsections (a) and (b) of section 
14515 through distribution to organizations referred to in subsection 
(a), its remaining allocation of commodities shall be distributed to 
charitable institutions described in section 14523(3) not receiving 
commodities under subsection (a).
    (c) If the State agency determines that the State will not exhaust 
the commodities allocated under subsections (a) and (b) of section 
14515 through distribution to organizations referred to in subsections 
(a) and (b), its remaining allocation of commodities shall be 
distributed to any eligible recipient agency not receiving commodities 
under subsections (a) and (b).

SEC. 14517. INITIAL PROCESSING COSTS.

    The Secretary may use funds of the Commodity Credit Corporation to 
pay the costs of initial processing and packaging of commodities to be 
distributed under this chapter into forms and in quantities suitable, 
as determined by the Secretary, for use by the individual households or 
eligible recipient agencies, as applicable. The Secretary may pay such 
costs in the form of Corporation-owned commodities equal in value to 
such costs. The Secretary shall ensure that any such payments in kind 
will not displace commercial sales of such commodities.

SEC. 14518. ASSURANCES; ANTICIPATED USE.

    (a) The Secretary shall take such precautions as the Secretary 
deems necessary to ensure that commodities made available under this 
chapter will not displace commercial sales of such commodities or the 
products thereof. The Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate by December 31, 
1997, and not less than every two years thereafter, a report as to 
whether and to what extent such displacements or substitutions are 
occurring.
    (b) The Secretary shall determine that commodities provided under 
this chapter shall be purchased and distributed only in quantities that 
can be consumed without waste. No eligible recipient agency may receive 
commodities under this chapter in excess of anticipated use, based on 
inventory records and controls, or in excess of its ability to accept 
and store such commodities.

SEC. 14519. AUTHORIZATION OF APPROPRIATIONS.

    (a) Purchase of Commodities.--To carry out this chapter there are 
authorized to be appropriated $260,000,000 for each of the fiscal years 
1996 through 2000 to purchase, process, and distribute commodities to 
the States in accordance with this chapter.
    (b) Administrative Funds.--
            (1) There are authorized to be appropriated $40,000,000 for 
        each of the fiscal years 1996 through 2000 for the Secretary to 
        make available to the States for State and local payments for 
        costs associated with the distribution of commodities by 
        eligible recipient agencies under this chapter, excluding costs 
        associated with the distribution of those commodities 
        distributed under section 14520. Funds appropriated under this 
        paragraph for any fiscal year shall be allocated to the States 
        on an advance basis dividing such funds among the States in the 
        same proportions as the commodities distributed under this 
        chapter for such fiscal year are allocated among the States. If 
        a State agency is unable to use all of the funds so allocated 
        to it, the Secretary shall reallocate such unused funds among 
        the other States in a manner the Secretary deems appropriate 
        and equitable.
            (2)(A) A State shall make available in each fiscal year to 
        eligible recipient agencies in the State not less than 40 
        percent of the funds received by the State under paragraph (1) 
        for such fiscal year, as necessary to pay for, or provide 
        advance payments to cover, the allowable expenses of eligible 
        recipient agencies for distributing commodities to needy 
        persons, but only to the extent such expenses are actually so 
        incurred by such recipient agencies.
            (B) As used in this paragraph, the term ``allowable 
        expenses'' includes--
                    (i) costs of transporting, storing, handling, 
                repackaging, processing, and distributing commodities 
                incurred after such commodities are received by 
                eligible recipient agencies;
                    (ii) costs associated with determinations of 
                eligibility, verification, and documentation;
                    (iii) costs of providing information to persons 
                receiving commodities under this chapter concerning the 
                appropriate storage and preparation of such 
                commodities; and
                    (iv) costs of recordkeeping, auditing, and other 
                administrative procedures required for participation in 
                the program under this chapter.
            (C) If a State makes a payment, using State funds, to cover 
        allowable expenses of eligible recipient agencies, the amount 
        of such payment shall be counted toward the amount a State must 
        make available for allowable expenses of recipient agencies 
        under this paragraph.
            (3) States to which funds are allocated for a fiscal year 
        under this subsection shall submit financial reports to the 
        Secretary, on a regular basis, as to the use of such funds. No 
        such funds may be used by States or eligible recipient agencies 
        for costs other than those involved in covering the expenses 
        related to the distribution of commodities by eligible 
        recipient agencies.
            (4)(A) Except as provided in subparagraph (B), to be 
        eligible to receive funds under this subsection, a State shall 
        provide in cash or in kind (according to procedures approved by 
        the Secretary for certifying these in-kind contributions) from 
        non-Federal sources a contribution equal to the difference 
        between--
                    (i) the amount of such funds so received; and
                    (ii) any part of the amount allocated to the State 
                and paid by the State--
                            (I) to eligible recipient agencies; or
                            (II) for the allowable expenses of such 
                        recipient agencies; for use in carrying out 
                        this chapter.
            (B) Funds allocated to a State under this section may, upon 
        State request, be allocated before States satisfy the matching 
        requirement specified in subparagraph (A), based on the 
        estimated contribution required. The Secretary shall 
        periodically reconcile estimated and actual contributions and 
        adjust allocations to the State to correct for overpayments and 
        underpayments.
            (C) Any funds distributed for administrative costs under 
        section 14520(b) shall not be covered by this paragraph.
            (5) States may not charge for commodities made available to 
        eligible recipient agencies, and may not pass on to such 
        recipient agencies the cost of any matching requirements, under 
        this chapter.
    (c) The value of the commodities made available under subsections 
(c) and (d) of section 14512, and the funds of the Commodity Credit 
Corporation used to pay the costs of initial processing, packaging 
(including forms suitable for home use), and delivering commodities to 
the States shall not be charged against appropriations authorized by 
this section.

SEC. 14520. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    (a) From the funds appropriated under section 14519(a), $94,500,000 
shall be used for each fiscal year to purchase and distribute 
commodities to supplemental feeding programs serving woman, infants, 
and children or elderly individuals (hereinafter in this section 
referred to as the ``commodity supplemental food program''), or serving 
both groups wherever located.
    (b) Not more than 20 percent of the funds made available under 
subsection (a) shall be made available to the States for State and 
local payments of administrative costs associated with the distribution 
of commodities by eligible recipient agencies under this section. 
Administrative costs for the purposes of the commodity supplemental 
food program shall include, but not be limited to, expenses for 
information and referral, operation, monitoring, nutrition education, 
start-up costs, and general administration, including staff, warehouse 
and transportation personnel, insurance, and administration of the 
State or local office.
    (c)(1) During each fiscal year the commodity supplemental food 
program is in operation, the types, varieties, and amounts of 
commodities to be purchased under this section shall be determined by 
the Secretary, but, if the Secretary proposes to make any significant 
changes in the types, varieties, or amounts from those that were 
available or were planned at the beginning of the fiscal year the 
Secretary shall report such changes before implementation to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate.
    (2) Notwithstanding any other provision of law, the Commodity 
Credit Corporation shall, to the extent that the Commodity Credit 
Corporation inventory levels permit, provide not less than 9,000,000 
pounds of cheese and not less than 4,000,000 pounds of nonfat dry milk 
in each of the fiscal years 1996 through 2000 to the Secretary. The 
Secretary shall use such amounts of cheese and nonfat dry milk to carry 
out the commodity supplemental food program before the end of each 
fiscal year.
    (d) The Secretary shall, in each fiscal year, approve applications 
of additional sites for the program, including sites that serve only 
elderly persons, in areas in which the program currently does not 
operate, to the full extent that applications can be approved within 
the appropriations available for the program for the fiscal year and 
without reducing actual participation levels (including participation 
of elderly persons under subsection (e)) in areas in which the program 
is in effect.
    (e) If a local agency that administers the commodity supplemental 
food program determines that the amount of funds made available to the 
agency to carry out this section exceeds the amount of funds necessary 
to provide assistance under such program to women, infants, and 
children, the agency, with the approval of the Secretary, may permit 
low-income elderly persons (as defined by the Secretary) to participate 
in and be served by such program.
    (f)(1) If it is necessary for the Secretary to pay a significantly 
higher than expected price for one or more types of commodities 
purchased under this section, the Secretary shall promptly determine 
whether the price is likely to cause the number of persons that can be 
served in the program in a fiscal year to decline.
    (2) If the Secretary determines that such a decline would occur, 
the Secretary shall promptly notify the State agencies charged with 
operating the program of the decline and shall ensure that a State 
agency notify all local agencies operating the program in the State of 
the decline.
    (g) Commodities distributed to States pursuant to this section 
shall not be considered in determining the commodity allocation to each 
State under section 14515 or priority of distribution under section 
14516.

SEC. 14521. COMMODITIES NOT INCOME.

    Notwithstanding any other provision of law, commodities distributed 
under this chapter shall not be considered income or resources for 
purposes of determining recipient eligibility under any Federal, State, 
or local means-tested program.

SEC. 14522. PROHIBITION AGAINST CERTAIN STATE CHARGES.

    Whenever a commodity is made available without charge or credit 
under this chapter by the Secretary for distribution within the States 
to eligible recipient agencies, the State may not charge recipient 
agencies any amount that is in excess of the State's direct costs of 
storing, and transporting to recipient agencies the commodities minus 
any amount the Secretary provides the State for the costs of storing 
and transporting such commodities.

SEC. 14523. DEFINITIONS.

    As used in this chapter:
            (1) The term ``average monthly number of unemployed 
        persons'' means the average monthly number of unemployed 
        persons within a State in the most recent fiscal year for which 
        such information is available as determined by the Bureau of 
        Labor Statistics of the Department of Labor.
            (2) The term ``elderly persons'' means individuals 60 years 
        of age or older.
            (3) The term ``eligible recipient agency'' means a public 
        or nonprofit organization that administers--
                    (A) an institution providing commodities to 
                supplemental feeding programs serving women, infants, 
                and children or serving elderly persons, or serving 
                both groups;
                    (B) an emergency feeding organization;
                    (C) a charitable institution (including a hospital 
                and a retirement home, but excluding a penal 
                institution) to the extent that such institution serves 
                needy persons;
                    (D) a summer camp for children, or a child 
                nutrition program providing food service;
                    (E) a nutrition project operating under the Older 
                Americans Act of 1965, including such project that 
                operates a congregate nutrition site and a project that 
                provides home-delivered meals; or
                    (F) a disaster relief program; and that has been 
                designated by the appropriate State agency, or by the 
                Secretary, and approved by the Secretary for 
                participation in the program established under this 
                chapter.
            (4) The term ``emergency feeding organization'' means a 
        public or nonprofit organization that administers activities 
        and projects (including the activities and projects of a 
        charitable institution, a food bank, a food pantry, a hunger 
        relief center, a soup kitchen, or a similar public or private 
        nonprofit eligible recipient agency) providing nutrition 
        assistance to relieve situations of emergency and distress 
        through the provision of food to needy persons, including low-
        income and unemployed persons.
            (5) The term ``food bank'' means a public and charitable 
        institution that maintains an established operation involving 
        the provision of food or edible commodities, or the products 
thereof, to food pantries, soup kitchens, hunger relief centers, or 
other food or feeding centers that, as an integral part of their normal 
activities, provide meals or food to feed needy persons on a regular 
basis.
            (6) The term ``food pantry'' means a public or private 
        nonprofit organization that distributes food to low-income and 
        unemployed households, including food from sources other than 
        the Department of Agriculture, to relieve situations of 
        emergency and distress.
            (7) The term ``needy persons'' means--
                    (A) individuals who have low incomes or who are 
                unemployed, as determined by the State (in no event 
                shall the income of such individual or household exceed 
                185 percent of the poverty line);
                    (B) households certified as eligible to participate 
                in the food stamp program under the Food Stamp Act of 
                1977 (7 U.S.C. 2011 et seq.); or
                    (C) individuals or households participating in any 
                other Federal, or Federally assisted, means-tested 
                program.
            (8) The term ``poverty line'' has the same meaning given 
        such term in section 673(2) of the Community Services Block 
        Grant Act (42 U.S.C. 9902(2)).
            (9) The term ``soup kitchen'' means a public and charitable 
        institution that, as integral part of its normal activities, 
        maintains an established feeding operation to provide food to 
        needy homeless persons on a regular basis.

SEC. 14524. REGULATIONS.

    (a) The Secretary shall issue regulations within 120 days to 
implement this chapter.
    (b) In administering this chapter, the Secretary shall minimize, to 
the maximum extent practicable, the regulatory, recordkeeping, and 
paperwork requirements imposed on eligible recipient agencies.
    (c) The Secretary shall as early as feasible but not later than the 
beginning of each fiscal year, publish in the Federal Register a 
nonbinding estimate of the types and quantities of commodities that the 
Secretary anticipates are likely to be made available under the 
commodity distribution program under this chapter during the fiscal 
year.
    (d) The regulations issued by the Secretary under this section 
shall include provisions that set standards with respect to liability 
for commodity losses for the commodities distributed under this chapter 
in situations in which there is no evidence of negligence or fraud, and 
conditions for payment to cover such losses. Such provisions shall take 
into consideration the special needs and circumstances of eligible 
recipient agencies.

SEC. 14525. FINALITY OF DETERMINATIONS.

    Determinations made by the Secretary under this chapter and the 
facts constituting the basis for any donation of commodities under this 
chapter, or the amount thereof, when officially determined in 
conformity with the applicable regulations prescribed by the Secretary, 
shall be final and conclusive and shall not be reviewable by any other 
officer or agency of the Government.

SEC. 14526. SALE OF COMMODITIES PROHIBITED.

    Except as otherwise provided in section 14517, none of the 
commodities distributed under this chapter shall be sold or otherwise 
disposed of in commercial channels in any form.

SEC. 14527. SETTLEMENT AND ADJUSTMENT OF CLAIMS.

    (a) The Secretary, or a designee of the Secretary, shall have the 
authority to--
            (1) determine the amount of, settle, and adjust any claim 
        arising under this chapter; and
            (2) waive such a claim if the Secretary determines that to 
        do so will serve the purposes of this chapter.
    (b) Nothing contained in this section shall be construed to 
diminish the authority of the Attorney General of the United States 
under section 516 of title 28, United States Code, to conduct 
litigation on behalf of the United States.

SEC. 14528. REPEALERS; AMENDMENTS.

    (a) The Emergency Food Assistance Act of 1983 (7 U.S.C. 612c note) 
is repealed.
    (b) Amendments.--
            (1) The Hunger Prevention Act of 1988 (7 U.S.C. 612c note) 
        is amended--
                    (A) by striking section 110;
                    (B) by striking subtitle C of title II; and
                    (C) by striking section 502.
            (2) The Commodity Distribution Reform Act and WIC 
        Amendments of 1987 (7 U.S.C. 612c note) is amended by striking 
        section 4.
            (3) The Charitable Assistance and Food Bank Act of 1987 (7 
        U.S.C. 612c note) is amended by striking section 3.
            (4) The Food Security Act of 1985 (7 U.S.C. 612c note) is 
        amended--
                    (A) by striking section 1571; and
                    (B) in section 1562(d), by striking ``section 4 of 
                the Agricultural and Consumer Protection Act of 1973'' 
                and inserting ``section 110 of the Commodity 
                Distribution Act of 1995''.
            (5) The Agricultural and Consumer Protection Act of 1973 (7 
        U.S.C. 612c note) is amended--
                    (A) in section 4(a), by striking ``institutions 
                (including hospitals and facilities caring for needy 
                infants and children), supplemental feeding programs 
                serving women, infants and children or elderly persons, 
                or both, wherever located, disaster areas, summer camps 
                for children'' and inserting ``disaster areas'';
                    (B) in subsection 4(c), by striking ``the Emergency 
                Food Assistance Act of 1983'' and inserting ``the 
                Commodity Distribution Act of 1995''; and
                    (C) by striking section 5.
            (6) The Food, Agriculture, Conservation, and Trade Act of 
        1990 (7 U.S.C. 612c note) is amended by striking section 
        1773(f).
           CHAPTER 2--CONSOLIDATING FOOD ASSISTANCE PROGRAMS

SEC. 14541. FOOD STAMP BLOCK GRANT PROGRAM.

    (a) Authority To Make Block Grants.--The Secretary of Agriculture 
shall make grants in accordance with this section to States to provide 
food assistance to individuals who are economically disadvantaged and 
to individuals who are members of economically disadvantaged families.
    (b) Distribution of Funds.--The funds appropriated to carry out 
this section for any fiscal year shall be allotted among the States as 
follows:
            (1) Of the aggregate amount to be distributed under this 
        section, .21 percent shall be reserved for grants to Guam, the 
        Virgin Islands of the United States, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        Palau.
            (2) Of the aggregate amount to be distributed under this 
        section, .24 percent shall be reserved for grants to tribal 
        organizations that have governmental jurisdiction over 
        geographically defined areas and shall be allocated equitably 
        by the Secretary among such organizations.
            (3) The remainder of such aggregate amount shall be 
        allocated among the remaining States. The amount allocated to 
        each of the remaining States shall bear the same proportion to 
        such remainder as the number of resident individuals in such 
        State who are economically disadvantaged separately or as 
        members of economically disadvantaged families bears to the 
        aggregate number of resident individuals in all such remaining 
        States who are economically disadvantaged separately or as 
        members of economically disadvantaged families.
    (c) Eligibility To Receive Grants.--To be eligible to receive a 
grant in the amount allotted to a State for a fiscal year, such State 
shall submit to the Secretary an application in such form, and 
containing such information and assurances, as the Secretary may 
require by rule, including--
            (1) an assurance that such grant will be expended by the 
        State to provide food assistance to resident individuals in 
        such State who are economically disadvantaged separately or as 
        members of economically disadvantaged families,
            (2) an assurance that not more than 5 percent of such grant 
        will be expended by the State for administrative costs incurred 
        to provide assistance under this section, and
            (3) an assurance that an individual who has not worked 32 
        hours in a calendar month shall be ineligible to received food 
        assistance under this chapter during the succeeding month 
        unless such individual is--
                    (A) disabled,
                    (B) has attained 60 years of age, or
                    (C) residing with one or more of such individual's 
                children who have not attained 18 years of age, but is 
                not residing with any other parent of any of such 
                children, unless that other parent is disabled.
    (d) Annual Report.--Each State that receives funds appropriated to 
carry out this section for a fiscal year shall submit the Secretary, 
not later than May 1 following such fiscal year, a report--
            (1) specifying the number of families who received food 
        assistance under this section provided by such State in such 
        fiscal year;
            (2) specifying the number of individuals who received food 
        assistance under this section provided by such State in such 
        fiscal year;
            (3) the amount of such funds expended in such fiscal year 
        by such State to provide food assistance; and
            (4) the administrative costs incurred in such fiscal year 
        by such State to provide food assistance.
    (e) Limitation.--No State or political subdivision of a State that 
receives funds provided under this subtitle shall replace any employed 
worker with an individual who is participating in a work program for 
the purpose of complying with subsection (c)(3). Such an individual may 
be placed in any position offered by the State or political subdivision 
that--
            (A) is a new position,
            (B) is a position that became available in the normal 
        course of conducting the business of the State or political 
        subdivision,
            (C) involves performing work that would otherwise be 
        performed on an overtime basis by a worker who is not an 
        individual participating in such program, or
            (D) that is a position which became available by shifting a 
        current employee to an alternate position.
    (f) Authorization of Appropriations.--(1) There are authorized to 
be appropriated to carry out this section $26,245,000,000 for each of 
the fiscal years 1996, 1997, 1998, 1999, and 2000.
    (2) For the purpose of affording adequate notice of funding 
available under this section, an appropriation to carry out this 
section is authorized to be included in an appropriation Act for the 
fiscal year preceding the fiscal year for which such appropriation is 
available for obligation.

SEC. 14542. AVAILABILITY OF FEDERAL COUPON SYSTEM TO STATES.

    (a) Issuance, Purchase, and Use of Coupons.--The Secretary shall 
issue, and make available for purchase by States, coupons for the 
retail purchase of food from retail food stores that are approved in 
accordance with subsection (b). Coupons issued, purchased, and used as 
provided in this section shall be redeemable at face value by the 
Secretary through the facilities of the Treasury of the United States. 
The purchase price of each coupon issued under this subsection shall be 
the face value of such coupon.
    (b) Approval of Retail Food Stores and Wholesale Food Concerns.--
(1) Regulations issued pursuant to this section shall provide for the 
submission of applications for approval by retail food stores and 
wholesale food concerns which desire to be authorized to accept and 
redeem coupons under this section. In determining the qualifications of 
applicants, there shall be considered among such other factors as may 
be appropriate, the following:
            (A) The nature and extent of the food business conducted by 
        the applicant.
            (B) The volume of coupon business which may reasonably be 
        expected to be conducted by the applicant food store or 
        wholesale food concern.
            (C) The business integrity and reputation of the applicant.
Approval of an applicant shall be evidenced by the issuance to such 
applicant of a nontransferable certificate of approval. The Secretary 
is authorized to issue regulations providing for a periodic 
reauthorization of retail food stores and wholesale food concerns.
    (2) A buyer or transferee (other than a bona fide buyer or 
transferee) of a retail food store or wholesale food
 concern that has been disqualified under subsection (d) may not accept 
or redeem coupons until the Secretary receives full payment of any 
penalty imposed on such store or concern.
    (3) Regulations issued pursuant to this section shall require an 
applicant retail food store or wholesale food concern to submit 
information which will permit a determination to be made as to whether 
such applicant qualifies, or continues to qualify, for approval under 
this section or the regulations issued pursuant to this section. 
Regulations issued pursuant to this section shall provide for 
safeguards which limit the use or disclosure of information obtained 
under the authority granted by this subsection to purposes directly 
connected with administration and enforcement of this section or the 
regulations issued pursuant to this section, except that such 
information may be disclosed to and used by States that purchase such 
coupons.
    (4) Any retail food store or wholesale food concern which has 
failed upon application to receive approval to participate in the 
program under this sectionmay obtain a hearing on such refusal as 
provided in subsection (f).
    (c) Redemption of Coupons.--Regulations issued under this section 
shall provide for the redemption of coupons accepted by retail food 
stores through approved wholesale food concerns or through financial 
institutions which are insured by the Federal Deposit Insurance 
Corporation, or which are insured under the Federal Credit Union Act 
(12 U.S.C. 1751 et seq.) and have retail food stores or wholesale food 
concerns in their field of membership, with the cooperation of the 
Treasury Department, except that retail food stores defined in section 
14533(5)(D) shall be authorized to redeem their members' food coupons 
prior to receipt by the members of the food so purchased, and publicly 
operated community mental health centers or private nonprofit 
organizations or institutions which serve meals to narcotics addicts or 
alcoholics in drug addiction or alcoholic treatment and rehabilitation 
programs, public and private nonprofit shelters that prepare and serve 
meals for battered women and children, public or private nonprofit 
group living arrangements that serve meals to disabled or blind 
residents, and public or private nonprofit establishments, or public or 
private nonprofit shelters that feed individuals who do not reside in 
permanent dwellings and individuals who have no fixed mailing addresses 
shall not be authorized to redeem coupons through financial 
institutions which are insured by the Federal Deposit Insurance 
Corporation or the Federal Credit Union Act. No financial institution 
may impose on or collect from a retail food store a fee or other charge 
for the redemption of coupons that are submitted to the financial 
institution in a manner consistent with the requirements, other than 
any requirements relating to cancellation of coupons, for the 
presentation of coupons by financial institutions to the Federal 
Reserve banks.
    (d) Civil Money Penalties and Disqualification of Retail Food 
Stores and Wholesale Food Concerns.--(1) Any approved retail food store 
or wholesale food concern may be disqualified for a specified period of 
time from further participation in the coupon program under this 
section, or subjected to a civil money penalty of up to $10,000 for 
each violation if the Secretary determines that its disqualification 
would cause hardship to individuals who receive coupons, on a finding, 
made as specified in the regulations, that such store or concern has 
violated this section or the regulations issued pursuant to this 
section.
    (2) Disqualification under paragraph (1) shall be--
            (A) for a reasonable period of time, of no less than 6 
        months nor more than 5 years, upon the first occasion of 
        disqualification,
            (B) for a reasonable period of time, of no less than 12 
        months nor more than 10 years, upon the second occasion of 
        disqualification, and
            (C) permanent upon--
                    (i) the third occasion of disqualification,
                    (ii) the first occasion or any subsequent occasion 
                of a disqualification based on the purchase of coupons 
                or trafficking in coupons by a retail food store or 
                wholesale food concern, except that the Secretary shall 
                have the discretion to impose a civil money penalty of 
                up to $20,000 for each violation (except that the 
                amount of civil money penalties imposed for violations 
                occurring during a single investigation may not exceed 
                $40,000) in lieu of disqualification under this 
                subparagraph, for such purchase of coupons or 
                trafficking in coupons that constitutes a violation of 
                this section or the regulations issued pursuant to this 
                section, if the Secretary determines that there is 
                substantial evidence (including evidence that neither 
                the ownership nor management of the store or food 
                concern was aware of, approved, benefited from, or was 
                involved in the conduct or approval of the violation) 
                that such store or food concern had an effective policy 
                and program in effect to prevent violations of this 
                section and such regulations, or
                    (iii) a finding of the sale of firearms, 
                ammunition, explosives, or controlled substance (as 
                defined in section 802 of title 21, United States Code) 
                for coupons, except that the Secretary shall have the 
                discretion to impose a civil money penalty of up to 
                $20,000 for each violation (except that the amount of 
                civil money penalties imposed for violations occurring 
                during a single investigation may not exceed $40,000) 
                in lieu of disqualification under this subparagraph if 
                the Secretary determines that there is substantial 
                evidence (including evidence that neither the ownership 
                nor management of the store or food concern was aware 
                of, approved, benefited from, or was involved in the 
                conduct or approval of the violation) that the store or 
                food concern had an effective policy and program in 
                effect to prevent violations of this section.
    (3) The action of disqualification or the imposition of a civil 
money penalty shall be subject to review as provided in subsection (f).
    (4) As a condition of authorization to accept and redeem coupons 
issued under subsection (a), the Secretary may require a retail food 
store or wholesale food concern which has been disqualified or 
subjected to a civil penalty
 pursuant to paragraph (1) to furnish a bond to cover the value of 
coupons which such store or concern may in the future accept and redeem 
in violation of this section. The Secretary shall, by regulation, 
prescribe the amount, terms, and conditions of such bond. If the 
Secretary finds that such store or concern has accepted and redeemed 
coupons in violation of this section after furnishing such bond, such 
store or concern shall forfeit to the Secretary an amount of such bond 
which is equal to the value of coupons accepted and redeemed by such 
store or concern in violation of this section. Such store or concern 
may obtain a hearing on such forfeiture pursuant to subsection (f).
    (5)(A) In the event any retail food store or wholesale food concern 
that has been disqualified under paragraph (1) is sold or the ownership 
thereof is otherwise transferred to a purchaser or transferee, the 
person or persons who sell or otherwise transfer ownership of the 
retail food store or wholesale food concern shall be subjected to a 
civil money penalty in an amount established by the Secretary through 
regulations to reflect that portion of the disqualification period that 
has not yet expired. If the retail food store or wholesale food concern 
has been disqualified permanently, the civil money penalty shall be 
double the penalty for a 10-year disqualification period, as calculated 
under regulations issued by the Secretary. The disqualification period 
imposed under paragraph (2) shall continue in effect as to the person 
or persons who sell or otherwise transfer ownership of the retail food 
store or wholesale food concern notwithstanding the imposition of a 
civil money penalty under this paragraph.
    (B) At any time after a civil money penalty imposed under 
subparagraph (A) has become final under subsection (f)(1), the 
Secretary may request the Attorney General of the United States to 
institute a civil action against the person or persons subject to the 
penalty in a district court of the United States for any district in 
which such person or persons are found, reside, or transact business to 
collect the penalty and such court shall have jurisdiction to hear and 
decide such action. In such action, the validity and amount of such 
penalty shall not be subject to review.
    (C) The Secretary may impose a fine against any retail food store 
or wholesale food concern that accepts coupons that are not accompanied 
by the corresponding book cover, other than the denomination of coupons 
used for making change as specified in regulations issued under this 
section. The amount of any such fine shall be established by the 
Secretary and may be assessed and collected separately in accordance 
with regulations issued under this section or in combination with any 
fiscal claim established by the Secretary. The Attorney General of the 
United States may institute judicial action in any court of competent 
jurisdiction against the store or concern to collect the fine.
    (6) The Secretary may impose a fine against any person not approved 
by the Secretary to accept and redeem coupons who violates this section 
or a regulation issued under this section, including violations 
concerning the acceptance of coupons. The amount of any such fine shall 
be established by the Secretary and may be assessed and collected in 
accordance with regulations issued under this section separately or in 
combination with any fiscal claim established by the Secretary. The 
Attorney General of the United States may institute judicial action in 
any court of competent jurisdiction against the person to collect the 
fine.
    (e) Collection and Disposition of Claims.--The Secretary shall have 
the power to determine the amount of and settle and adjust any claim 
and to compromise or deny all or part of any such claim or claims 
arising under this section or the regulations issued pursuant to this 
section, including, but not limited to, claims arising from fraudulent 
and nonfraudulent overissuances to recipients, including the power to 
waive claims if the Secretary determines that to do so would serve the 
purposes of this section. Such powers with respect to claims against 
recipients may be delegated by the Secretary to State agencies.
    (f) Administrative and Judicial Review.--(1) Whenever--
            (A) an application of a retail food store or wholesale food 
        concern for approval to accept and redeem coupons issued under 
        subsection (a) is denied pursuant to this section,
            (B) a retail food store or wholesale food concern is 
        disqualified or subjected to a civil money penalty under 
        subsection (d),
            (C) all or part of any claim of a retail food store or 
        wholesale food concern is denied under subsection (e), or
            (D) a claim against a State is stated pursuant to 
        subsection (e),
notice of such administrative action shall be issued to the retail food 
store, wholesale food concern, or State involved. Such notice shall be 
delivered by certified mail or personal service. If such store, 
concern, or State is aggrieved by such action, it may, in accordance 
with regulations promulgated under this section, within 10 days of the 
date of delivery of such notice, file a written request for an 
opportunity to submit information in support of its position to such 
person or persons as the regulations may designate. If such a request 
is not made or if such store, concern, or State fails to submit 
information in support of its position after filing a request, the 
administrative determination shall be final. If such request is made by 
such store, concern, or State such information as may be submitted by 
such store, concern, or State as well as such other information as may 
be available, shall be reviewed by the person or persons designated by 
the Secretary, who shall, subject to the right of judicial review 
hereinafter provided, make a determination which shall be final and 
which shall take effect 30 days after the date of the delivery or 
service of such final notice of determination. If such store, concern, 
or State feels aggrieved by such final determination, it may obtain 
judicial review thereof by filing a complaint against the United States 
in the United States court for the district in which it resides or is 
engaged in business, or, in the case of a retail food store or 
wholesale food concern, in any court of record of the State having 
competent jurisdiction, within 30 days after the date of delivery or 
service of the final notice of determination upon it, requesting the 
court to set aside such determination. The copy of the summons and 
complaint required to be delivered to the official or agency whose 
order is being attacked shall be sent to the Secretary or such person 
or persons as the Secretary may designate
 to receive service of process. The suit in the United States district 
court or State court shall be a trial de novo by the court in which the 
court shall determine the validity of the questioned administrative 
action in issue. If the court determines that such administrative 
action is invalid, it shall enter such judgment or order as it 
determines is in accordance with the law and the evidence. During the 
pendency of such judicial review, or any appeal therefrom, the 
administrative action under review shall be and remain in full force 
and effect, unless on application to the court on not less than ten 
days' notice, and after hearing thereon and a consideration by the 
court of the applicant's likelihood of prevailing on the merits and of 
irreparable injury, the court temporarily stays such administrative 
action pending disposition of such trial or appeal.
    (g) Violations and Enforcement.--(1) Subject to paragraph (2), 
whoever knowingly uses, transfers, acquires, alters, or possesses 
coupons in any manner contrary to this section or the regulations 
issued pursuant to this section shall, if such coupons are of a value 
of $5,000 or more, be guilty of a felony and shall be fined not more 
than $250,000 or imprisoned for not more than 20 years, or both, and 
shall, if such coupons are of a value of $100 or more, but less than 
$5,000, be guilty of a felony and shall, upon the first conviction 
thereof, be fined not more than $10,000 or imprisoned for not more than 
5 years, or both, and, upon the second and any subsequent conviction 
thereof, shall be imprisoned for not less than 6 months nor more than 5 
years and may also be fined not more than $10,000 or, if such coupons 
are of a value of less than $100, shall be guilty of a misdemeanor, 
and, upon the first conviction thereof, shall be fined not more than 
$1,000 or imprisoned for not more than one year, or both, and upon the 
second and any subsequent conviction thereof, shall be imprisoned for 
not more than one year and may also be fined not more than $1,000.
    (2) In the case of any individual convicted of an offense under 
paragraph (1), the court may permit such individual to perform work 
approved by the court for the purpose of providing restitution for 
losses incurred by the United States and the State as a result of the 
offense for which such individual was convicted. If the court permits 
such individual to perform such work and such individual agrees 
thereto, the court shall withhold the imposition of the sentence on the 
condition that such individual perform the assigned work. Upon the 
successful completion of the assigned work the court may suspend such 
sentence.
    (3) Whoever presents, or causes to be presented, coupons for 
payment or redemption of the value of $100 or more, knowing the same to 
have been received, transferred, or used in any manner in violation of 
this section or the regulations issued under this section, shall be 
guilty of a felony and, upon the first conviction thereof, shall be 
fined not more than $20,000 or imprisoned for not more than 5 years, or 
both, and, upon the second and any subsequent conviction thereof, shall 
be imprisoned for not less than one year nor more than 5 years and may 
also be fined not more than $20,000, or, if such coupons are of a value 
of less than $100, shall be guilty of a misdemeanor and, upon the first 
conviction thereof, shall be fined not more than $1,000 or imprisoned 
for not more than one year, or both, and, upon the second and any 
subsequent conviction thereof, shall be imprisoned for not more than 
one year and may also be fined not more than $1,000.

SEC. 14543. DEFINITIONS.

    For purposes of this chapter--
            (1) the term ``coupon'' means any coupon, stamp, or type of 
        certificate, but does not include currency,
            (2) the term ``economically disadvantaged'' means an 
        individual or a family, as the case may be, whose income does 
        not exceed the most recent lower living standard income level 
        published by the Department of Labor,
            (3) the term ``elderly or disabled individual'' means an 
        individual who--
                    (A) is 60 years of age or older,
                    (B)(i) receives supplemental security income 
                benefits under title XVI of the Social Security Act (42 
                U.S.C. 1381 et seq.), or Federally or State 
                administered supplemental benefits of the type 
                described in section 212(a) of Public Law 93-66 (42 
                U.S.C. 1382 note), or
                    (ii) receives Federally or State administered 
                supplemental assistance of the type described in 
                section 1616(a) of the Social Security Act (42 U.S.C. 
                1382e(a)), interim assistance pending receipt of 
                supplemental security income, disability-related 
                medical assistance under title XIX of the Social 
                Security Act (42 U.S.C. 1396 et seq.), or disability-
                based State general assistance benefits, if the 
                Secretary determines that such benefits are conditioned 
                on meeting disability or blindness criteria at least as 
                stringent as those used under title XVI of the Social 
                Security Act,
                    (C) receives disability or blindness payments under 
                title I, II, X, XIV, or XVI of the Social Security Act 
                (42 U.S.C. 301 et seq.) or receives disability 
                retirement benefits from a governmental agency because 
                of a disability considered permanent under section 
                221(i) of the Social Security Act (42 U.S.C. 421(i)),
                    (D) is a veteran who--
                            (i) has a service-connected or non-service-
                        connected disability which is rated as total 
                        under title 38, United States Code, or
                            (ii) is considered in need of regular aid 
                        and attendance or permanently housebound under 
                        such title,
                    (E) is a surviving spouse of a veteran and--
                            (i) is considered in need of regular aid 
                        and attendance or permanently housebound under 
                        title 38, United States Code, or
                            (ii) is entitled to compensation for a 
                        service-connected death or pension benefits for 
                        a non-service-connected death under title 38, 
                        United States Code, and has a disability 
                        considered permanent under section 221(i) of 
                        the Social Security Act (42 U.S.C. 421(i)),
                    (F) is a child of a veteran and--
                            (i) is considered permanently incapable of 
                        self-support under section 414 of title 38, 
                        United States Code, or
                            (ii) is entitled to compensation for a 
                        service-connected death or pension benefits for 
                        a non-service-connected death under title 38, 
                        United States Code, and has a disability 
                        considered permanent under section 221(i) of 
                        the Social Security Act (42 U.S.C. 421(i)), or
                    (G) is an individual receiving an annuity under 
                section 2(a)(1)(iv) or 2(a)(1)(v) of the Railroad 
                Retirement Act of 1974 (45 U.S.C. 231a(a)(1)(iv) or 
                231a(a)(1)(v)), if the individual's service as an 
                employee under the Railroad Retirement Act of 1974, 
                after December 31, 1936, had been included in the term 
                ``employment'' as defined in the Social Security Act 
                (42 U.S.C. 301 et seq.), and if an application for 
                disability benefits had been filed,
            (4) the term ``food'' means, for purposes of section 
        14542(a) only--
                    (A) any food or food product for home consumption 
                except alcoholic beverages, tobacco, and hot foods or 
                hot food products ready for immediate consumption other 
                than those authorized pursuant to subparagraphs (C), 
                (D), (E), (G), (H), and (I),
                    (B) seeds and plants for use in gardens to produce 
                food for the personal consumption of the eligible 
                individuals,
                    (C) in the case of those persons who are 60 years 
                of age or over or who receive supplemental security 
                income benefits or disability or blindness payments 
                under title I, II, X, XIV, or XVI of the Social 
                Security Act (42 U.S.C. 301 et seq.), and their 
                spouses, meals prepared by and served in senior 
                citizens' centers, apartment buildings occupied 
                primarily by such persons, public or private nonprofit 
                establishments (eating or otherwise) that feed such 
                persons, private establishments that contract with the 
                appropriate agency of the State to offer meals for such 
                persons at concessional prices, and meals prepared for 
                and served to residents of federally subsidized housing 
                for the elderly,
                    (D) in the case of persons 60 years of age or over 
                and persons who are physically or mentally handicapped 
                or otherwise so disabled that they are unable 
                adequately to prepare all of their meals, meals 
                prepared for and delivered to them (and their spouses) 
                at their home by a public or private nonprofit 
                organization or by a private establishment that 
                contracts with the appropriate State agency to perform 
                such services at concessional prices,
                    (E) in the case of narcotics addicts or alcoholics, 
                and their children, served by drug addiction or 
                alcoholic treatment and rehabilitation programs, meals 
                prepared and served under such programs,
                    (F) in the case of eligible individuals living in 
                Alaska, equipment for procuring food by hunting and 
                fishing, such as nets, hooks, rods, harpoons, and 
                knives (but not equipment for purposes of 
                transportation, clothing, or shelter, and not firearms, 
                ammunition, and explosives) if the Secretary determines 
                that such individuals are located in an area of the 
                State where it is extremely difficult to reach stores 
                selling food and that such individuals depend to a 
                substantial extent upon hunting and fishing for 
                subsistence,
                    (G) in the case of disabled or blind recipients of 
                benefits under title I, II, X, XIV, or XVI of the 
                Social Security Act (42 U.S.C. 301 et seq.), or are 
                individuals described in subparagraphs (B) through (G) 
                of paragraph (4), who are residents in a public or 
                private nonprofit group living arrangement that serves 
                no more than 16 residents and is certified by the 
                appropriate State agency or agencies under regulations 
                issued under section 1616(e) of the Social Security Act 
                (42 U.S.C. 1382e(e)) or under standards determined by 
                the Secretary to be comparable to standards implemented 
                by appropriate State agencies under such section, meals 
                prepared and served under such arrangement,
                    (H) in the case of women and children temporarily 
                residing in public or private nonprofit shelters for 
                battered women and children, meals prepared and served, 
                by such shelters, and
                    (I) in the case of individuals that do not reside 
                in permanent dwellings and individuals that have no 
                fixed mailing addresses, meals prepared for and served 
                by a public or private nonprofit establishment 
                (approved by an appropriate State or local agency) that 
                feeds such individuals and by private establishments 
                that contract with the appropriate agency of the State 
                to offer meals for such individuals at concessional 
                prices,
            (5) the term ``retail food store'' means--
                    (A) an establishment or recognized department 
                thereof or house-to-house trade route, over 50 percent 
                of whose food sales volume, as determined by visual 
                inspection, sales records, purchase records, or other 
                inventory or accounting recordkeeping methods that are 
                customary or reasonable in the retail food industry, 
                consists of staple food items for home preparation and 
                consumption, such as meat, poultry, fish, bread, 
                cereals, vegetables, fruits, dairy products, and the 
                like, but not including accessory food items, such as 
                coffee, tea, cocoa, carbonated and uncarbonated drinks, 
                candy, condiments, and spices,
                    (B) an establishment, organization, program, or 
                group living arrangement referred to in subparagraph 
                (C), (D), (E), (G), (H), or (I) of paragraph (5),
                    (C) a store purveying the hunting and fishing 
                equipment described in paragraph (5)(F), or
                    (D) any private nonprofit cooperative food 
                purchasing venture, including those in which the 
                members pay for food purchased prior to the receipt of 
                such food,
            (6) the term ``school'' means an elementary, intermediate, 
        or secondary school,
            (7) the term ``Secretary'' means the Secretary of 
        Agriculture,
            (8) the term ``State'' means any of the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, Guam, 
        the Virgin Islands of the United States, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, 
        Palau, or a tribal organization that exercises governmental 
        jurisdiction over a geographically defined area, and
            (9) the term ``tribal organization'' has the meaning given 
        it in section 4(l) of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b(l)).

SEC. 14544. REPEALER.

    The Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) is repealed.

        CHAPTER 3--EFFECTIVE DATES AND MISCELLANEOUS PROVISIONS
SEC. 14591. EFFECTIVE DATE; APPLICATION OF REPEALER.

    (a) Effective Dates.--
            (1) General effective date of subtitle a.--Subtitle A shall 
        take effect on October 1, 1995.
            (2) General effective date of subtitle a/b.--Except as 
        provided in subsection (b), subtitle B and the repeal made by 
        section 14544 shall take effect on the date of the enactment of 
        this title.
            (3) Special effective date.--The repeal made by section 
        14544 shall not take effect until the first day of the first 
        fiscal year for which funds are appropriated more than 180 days 
        in advance of such fiscal year to carry out section 14541.
    (b) Application of Repealer.--The repeal made by section 14544 
shall not apply with respect to--
            (1) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable to financial assistance provided 
        under the Food Stamp Act of 1977 before the effective date of 
        such repeal, and
            (2) administrative actions and proceedings commenced before 
        such date, or authorized before such date to be commenced, 
        under such Act.

SEC. 14592. SENSE OF THE CONGRESS.

    It is the sense of the Congress that States that operate electronic 
benefit systems to transfer benefits provided under the Food Stamp Act 
of 1977 should operate electronic benefit systems that are compatible 
with each other.

SEC. 14593. DEFICIT REDUCTION.

    It is the sense of the Committee on Agriculture of the House of 
Representatives that reductions in outlays resulting from subtitle B 
shall not be taken into account for purposes of section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985.
                Subtitle F--Supplemental Security Income

SEC. 14601. DENIAL OF SUPPLEMENTAL SECURITY INCOME BENEFITS BY REASON 
              OF DISABILITY TO DRUG ADDICTS AND ALCOHOLICS.

    (a) In General.--Section 1614(a)(3) of the Social Security Act (42 
U.S.C. 1382c(a)(3)) is amended by adding at the end the following:
    ``(I) Notwithstanding subparagraph (A), an individual shall not be 
considered to be disabled for purposes of this title if alcoholism or 
drug addiction would (but for this subparagraph) be a contributing 
factor material to the Commissioner's determination that the individual 
is disabled.''.
    (b) Conforming Amendments.--
            (1) Section 1611(e) of such Act (42 U.S.C. 1382(e)) is 
        amended by striking paragraph (3).
            (2) Section 1631(a)(2)(A)(ii) of such Act (42 U.S.C. 
        1383(a)(2)(A)(ii)) is amended--
                    (A) by striking ``(I)''; and
                    (B) by striking subclause (II).
            (3) Section 1631(a)(2)(B) of such Act (42 U.S.C. 
        1383(a)(2)(B)) is amended--
                    (A) by striking clause (vii);
                    (B) in clause (viii), by striking ``(ix)'' and 
                inserting ``(viii)'';
                    (C) in clause (ix)--
                            (i) by striking ``(viii)'' and inserting 
                        ``(vii)''; and
                            (ii) in subclause (II), by striking all 
                        that follows ``15 years'' and inserting a 
                        period;
                    (D) in clause (xiii)--
                            (i) by striking ``(xii)'' and inserting 
                        ``(xi)''; and
                            (ii) by striking ``(xi)'' and inserting 
                        ``(x)''; and
                    (E) by redesignating clauses (viii) through (xiii) 
                as clauses (vii) through (xii), respectively.
            (4) Section 1631(a)(2)(D)(i)(II) of such Act (42 U.S.C. 
        1383(a)(2)(D)(i)(II)) is amended by striking all that follows 
        ``$25.00 per month'' and inserting a period.
            (5) Section 1634 of such Act (42 U.S.C. 1383c) is amended 
        by striking subsection (e).
            (6) Section 201(c)(1) of the Social Security Independence 
        and Program Improvements Act of 1994 (42 U.S.C. 425 note) is 
        amended--
                    (A) by striking ``--'' and all that follows through 
                ``(A)'' the 1st place such term appears;
                    (B) by striking ``and'' the 3rd place such term 
                appears;
                    (C) by striking subparagraph (B);
                    (D) by striking ``either subparagraph (A) or 
                subparagraph (B)'' and inserting ``the preceding 
                sentence''; and
                    (E) by striking ``subparagraph (A) or (B)'' and 
                inserting ``the preceding sentence''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1995, and shall apply with respect to months 
beginning on or after such date.
    (d) Funding of Certain Programs for Drug Addicts and Alcoholics.--
            (1) In general.--Out of any money in the Treasury not 
        otherwise appropriated, there are hereby appropriated--
                    (A) for carrying out section 1971 of the Public 
                Health Service Act (as amended by paragraph (2) of this 
                subsection), $95,000,000 for each of the fiscal years 
                1997 through 2000; and
                    (B) for carrying out the medication development 
                project to improve drug abuse and drug treatment 
                research (administered through the National Institute 
                on Drug Abuse), $5,000,000 for each of the fiscal years 
                1997 through 2000.
            (2) Capacity expansion program regarding drug abuse 
        treatment.--Section 1971 of the Public Health Service Act (42 
        U.S.C. 300y) is amended--
                    (A) in subsection (a)(1), by adding at the end the 
                following sentence: ``This paragraph is subject to 
                subsection (j).'';
                    (B) by redesignating subsection (j) as subsection 
                (k);
                    (C) in subsection (j) (as so redesignated), by 
                inserting before the period the following: ``and for 
                each of the fiscal years 1995 through 2000''; and
                    (D) by inserting after subsection (i) the following 
                subsection:
    ``(j) Formula Grants for Certain Fiscal Years.--
            ``(1) In general.--For each of the fiscal years 1997 
        through 2000, the Director shall, for the purpose described in 
        subsection (a)(1), make a grant to each State that submits to 
        the Director an application in accordance with paragraph (2). 
        Such a grant for a State shall consist of the allotment 
        determined for the State under paragraph (3). For each of the 
        fiscal years 1997 through 2000, grants under this paragraph 
        shall be the exclusive grants under this section.
            ``(2) Requirements.--The Director may make a grant under 
        paragraph (1) only if, by the date specified by the Director, 
        the State submits to the Director an application for the grant 
        that is in such form, is made in such manner, and contain such 
        agreements, assurances, and information as the Director 
        determines to be necessary to carry out this subsection, and if 
        the application contains an agreement by the State in 
        accordance with the following:
                    ``(A) The State will expend the grant in accordance 
                with the priority described in subsection (b)(1).
                    ``(B) The State will comply with the conditions 
                described in each of subsections (c), (d), (g), and 
                (h).
            ``(3) Allotment.--
                    ``(A) For purposes of paragraph (1), the allotment 
                under this paragraph for a State for a fiscal year 
                shall, except as provided in subparagraph (B), be the 
                product of--
                            ``(i) the amount appropriated in section 
                        14601(d)(1)(A) of the Personal Responsibility 
                        Act of 1995 for the fiscal year, together with 
                        any additional amounts appropriated to carry 
                        out this section for the fiscal year; and
                            ``(ii) the percentage determined for the 
                        State under the formula established in section 
                        1933(a).
                    ``(B) Subsections (b) through (d) of section 1933 
                apply to an allotment under subparagraph (A) to the 
                same extent and in the same manner as such subsections 
                apply to an allotment under subsection (a) of section 
                1933.''.

SEC. 14602. SUPPLEMENTAL SECURITY INCOME BENEFITS FOR DISABLED 
              CHILDREN.

    (a) Restrictions on Eligibility for Cash Benefits.--
            (1) In general.--Section 1614(a)(3)(A) of the Social 
        Security Act (42 U.S.C. 1382c(a)(3)(A)) is amended--
                    (A) by inserting ``(i)'' after ``(3)(A)'';
                    (B) by inserting ``who has attained 18 years of 
                age'' before ``shall be considered'';
                    (C) by striking ``he'' and inserting ``the 
                individual'';
                    (D) by striking ``(or, in the case of an individual 
                under the age of 18, if he suffers from any medically 
                determinable physical or mental impairment impairment 
                of comparable severity)''; and
                    (E) by adding after and below the end the 
                following:
    ``(ii) An individual who has not attained 18 years of age shall be 
considered to be disabled for purposes of this title for a month if the 
individual--
            ``(I) meets all non-disability-related requirements for 
        eligibility for cash benefits under this title;
            ``(II) has any medically determinable physical or mental 
        impairment (or combination of impairments) that meets the 
        requirements, applicable to individuals who have not attained 
        18 years of age, of the Listings of Impairments set forth in 
        appendix 1 of subpart P of part 404 of title 20, Code of 
        Federal Regulations (revised as of April 1, 1994), or that is 
        equivalent in severity to such an impairment (or such a 
        combination of impairments); and
            ``(III)(aa) for the month preceding the first month for 
        which this clause takes effect, was eligible for cash benefits 
        under this title by reason of disability; or
            ``(bb) as a result of the impairment (or combination of 
        impairments) involved--
                    ``(1) is in a hospital, skilled nursing facility, 
                nursing facility, residential treatment facility, 
                intermediate care facility for the mentally retarded, 
                or other medical institution; or
                    ``(2) would be required to be placed in such an 
                institution if the individual were not receiving 
                personal assistance necessitated by the impairment (or 
                impairments).
    ``(iii) As used in clause (ii)(III)(bb)(2), the term `personal 
assistance' includes at least hands-on or stand-by assistance, 
supervision, or cueing, with activities of daily living and the 
administration of medical treatment (where applicable). For purposes of 
the preceding sentence, the term `acitivities of daily living' means 
eating, toileting, dressing, bathing, and transferring.''.
            (2) Notice.--Within 1 month after the date of the enactment 
        of this Act, the Commissioner of Social Security shall notify 
        each individual whose eligibility for cash supplemental 
        security income benefits
         under title XVI of the Social Security Act will terminate by 
reason of the amendments made by paragraph (1) of such termination.
            (3) Annual reports on listings of impairments.--The 
        Commissioner of Social Security shall annually submit to the 
        Congress a report on the Listings of Impairments set forth in 
        appendix 1 of subpart P of part 404 of title 20, Code of 
        Federal Regulations (revised as of April 1, 1994), that are 
        applicable to individuals who have not attained 18 years of 
        age, and recommend any necessary revisions to the listings.
    (b) Establishment of Program of Block Grants Regarding Children 
With Disabilities.--
            (1) In general.--Title XVI of the Social Security Act (42 
        U.S.C. 1381 et seq.) is amended by adding at the end the 
        following:

    ``PART C--BLOCK GRANTS TO STATES FOR CHILDREN WITH DISABILITIES

``SEC. 1641. ENTITLEMENT TO GRANTS.

    ``Each State that meets the requirements of section 1642 for fiscal 
year 1997 or any subsequent fiscal year shall be entitled to receive 
from the Commissioner for the fiscal year a grant in an amount equal to 
the allotment (as defined in section 1646(1)) of the State for the 
fiscal year.

``SEC. 1642. REQUIREMENTS.

    ``(a) In General.--A State meets the requirements of this section 
for a grant under section 1641 for a fiscal year if by the date 
specified by the Commissioner, the State submits to the Commissioner an 
application for the grant that is in such form, is made in such manner, 
and contain such agreements, assurances, and information as the 
Commissioner determines to be necessary to carry out this part, and if 
the application contains an agreement by the State in accordance with 
the following:
            ``(1) The grant will not be expended for any purpose other 
        than providing authorized services (as defined in section 
        1646(2)) to qualifying children (as defined in section 
        1646(3)).
            ``(2)(A) In providing authorized services, the State will 
        make every reasonable effort to obtain payment for the services 
        from other Federal or State programs that provide payment for 
        such services and from private entities that are legally liable 
        to make the payments pursuant to insurance policies, prepaid 
        plans, or other arrangements.
            ``(B) The State will expend the grant only to the extent 
        that payments from the programs and entities described in 
        subparagraph (A) are not available for authorized services 
        provided by the State.
            ``(3) The State will comply with the condition described in 
        subsection (b).
            ``(4) The State will comply with the condition described in 
        subsection (c).
    ``(b) Maintenance of Effort.--
            ``(1) In general.--The condition referred to in subsection 
        (a)(3) for a State for a fiscal year is that, with respect to 
        the purposes described in paragraph (2), the State will 
        maintain expenditures of non-Federal amounts for such purposes 
        at a level that is not less than the following, as applicable:
                    ``(A) For the first fiscal year for which the State 
                receives a grant under section 1641, an amount equal to 
                the difference between--
                            ``(i) the average level of such 
                        expenditures maintained by the State for the 2-
                        year period preceding October 1, 1995 (except 
                        that, if such first fiscal year is other than 
                        fiscal year 1997, the amount of such average 
                        level shall be increased to the extent 
                        necessary to offset the effect of inflation 
                        occurring after October 1, 1995); and
                            ``(ii) the aggregate of non-Federal 
                        expenditures made by the State for such 2-year 
                        period pursuant to section 1618 (as such 
                        section was in effect for such period).
                    ``(B) For each subsequent fiscal year, the amount 
                applicable under subparagraph (A) increased to the 
                extent necessary to offset the effect of inflation 
                occurring after the beginning of the fiscal year to 
                which such subparagraph applies.
            ``(2) Relevant purposes.--The purposes described in this 
        paragraph are any purposes designed to meet (or assist in 
        meeting) the unique needs of qualifying children that arise 
        from physical and mental impairments, including such purposes 
        that are authorized to be carried out under title XIX.
            ``(3) Rule of construction.--With respect to compliance 
        with the agreement made by a State pursuant to paragraph (1), 
        the State has discretion to select, from among the purposes 
        described in paragraph (2), the purposes for which the State 
        expends the non-Federal amounts reserved by the State for such 
        compliance.
            ``(4) Use of consumer price index.--Determinations under 
        paragraph (1) of the extent of inflation shall be made through 
        use of the consumer price index for all urban consumers, U.S. 
        city average, published by the Bureau of Labor Statistics.
    ``(c) Assessment of Need for Services.--The condition referred to 
in subsection (a)(4) for a State for a fiscal year is that each 
qualifying child will be permitted to apply for authorized services, 
and will be provided with an opportunity to have an assessment 
conducted to determine the need of such child for authorized services.

``SEC. 1643. AUTHORITY OF STATE.

    ``The following decisions are in the discretion of a State with 
respect to compliance with an agreement made by the State under section 
1642(a)(1):
            ``(1) Decisions regarding which of the authorized services 
        are provided.
            ``(2) Decisions regarding who among qualifying children in 
        the State receives the services.
            ``(3) Decisions regarding the number of services provided 
        for the qualifying child involved and the duration of the 
        services.

``SEC. 1644. AUTHORIZED SERVICES.

    ``(a) Authority of Commissioner.--The Commissioner, subject to 
subsection (b), shall issue regulations designating the purposes for 
which grants under section 1641 are authorized to be expended by the 
States.
    ``(b) Requirements Regarding Services.--The Commissioner shall 
ensure that the purposes authorized under subsection (a)--
            ``(1) are designed to meet (or assist in meeting) the 
        unique needs of qualifying children that arise from physical 
        and mental impairments;
            ``(2) include medical and nonmedical services; and
            ``(3) do not include the provision of cash benefits.

``SEC. 1645. GENERAL PROVISIONS.

    ``(a) Issuance of Regulations.--Regulations under this part shall 
be issued in accordance with procedures established for the issuance of 
substantive rules under section 553 of title 5, United States Code. 
Payments under grants under section 1641 for fiscal year 1997 shall 
begin not later than January 1, 1997, without regard to whether final 
rules under this part have been issued and without regard to whether 
such rules have taken effect.
    ``(b) Provisions Regarding Other Programs.--
            ``(1) Inapplicability of value of services.--The value of 
        authorized services provided under this part shall not be taken 
        into account in determining eligibility for, or the amount of, 
        benefits or services under any Federal or federally-assisted 
        program.
            ``(2) Medicaid program.--For purposes of title XIX, each 
        qualifying child shall be considered to be a recipient of 
        supplemental security income benefits under this title (without 
        regard to whether the child has received authorized services 
        under this part and without regard to whether the State 
        involved is receiving a grant under section 1641). The 
        preceding sentence applies on and after the date of the 
        enactment of this part.
    ``(c) Use by States of Existing Delivery Systems.--With respect to 
the systems utilized by the States to deliver services to individuals 
with disabilities (including systems utilized before the date of the 
enactment of the Personal Responsibility Act of 1995), it is the sense 
of the Congress that the States should utilize such systems in 
providing authorized services under this part.
    ``(d) Required Participation of States.--Subparagraphs (C)(i) and 
(E)(i)(I) of section 205(c)(2) shall not apply to a State that does not 
participate in the program established in this part for fiscal year 
1997 or any succeeding fiscal year.

``SEC. 1646. DEFINITIONS.

    ``As used in this part:
            ``(1) Allotment.--The term `allotment' means, with respect 
        to a State and a fiscal year, the product of--
                    ``(A) an amount equal to the difference between--
                            ``(i) the number of qualifying children in 
                        the State (as determined for the most recent 
                        12-month period for which data are available to 
                        the Commissioner); and
                            ``(ii) the number of qualifying children in 
                        the State receiving cash benefits under this 
                        title by reason of disability (as so 
                        determined); and
                    ``(B) an amount equal to 75 percent of the mean 
                average of the respective annual totals of cash 
                benefits paid under this title to each qualifying child 
                described in subparagraph (A)(ii) (as so determined).
            ``(2) Authorized service.--The term `authorized service' 
        means each purpose authorized by the Commissioner under section 
        1644(a).
            ``(3) Qualifying child.--
                    ``(A) In general.--The term `qualifying child' 
                means an individual who--
                            ``(i) has not attained 18 years of age; and
                            ``(ii)(I) is eligible for cash benefits 
                        under this title by reason of disability; or
                            ``(II) meets the conditions described in 
                        subclauses (I) and (II) of section 
                        1614(a)(3)(A)(ii), but (by reason of subclause 
                        (III) of such section) is not eligible for such 
                        cash benefits.
                    ``(B) Responsibilities of commissioner.--The 
                Commissioner shall provide for determinations of 
                whether individuals meet the criteria established in 
                subparagraph (A) for status as qualifying children. 
                Such determinations shall be made in accordance with 
                the provisions otherwise applicable under this title 
                with respect to such criteria.''.
            (2) Rule regarding certain military parents; cash benefits 
        for qualifying children.--Section 1614(a)(1)(B)(ii) of the 
        Social Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amended 
        by striking ``United States, and who, for the month'' and all 
        that follows and inserting the following: ``United States, 
        and--
            ``(I) who, for the month before the parent reported for 
        such assignment, received a cash benefit under this title by 
        reason of blindness, or
            ``(II) for whom, for such month, a determination was in 
        effect that the child is a qualifying child under section 
        1646(3).''.
    (c) Provisions Relating to SSI Cash Benefits and SSI Service 
Benefits.--
            (1) Continuing disability reviews for certain children.--
        Section 1614(a)(3)(G) of such Act (42 U.S.C. 1382c(a)(3)(G)) is 
        amended--
                    (A) by inserting ``(i)'' after ``(G)''; and
                    (B) by adding at the end the following:
    ``(ii)(I) Not less frequently than once every 3 years, the 
Commissioner shall redetermine the eligibility for cash benefits under 
this title and for services under part C--
            ``(aa) of each individual who has not attained 18 years of 
        age and is eligible for such cash benefits by reason of 
        disability; and
            ``(bb) of each qualifying child (as defined in section 
        1646(3)).
    ``(II) Subclause (I) shall not apply to an individual if the 
individual has an impairment (or combination of impairments) which is 
(or are) not expected to improve.''.
            (2) Disability review required for low birth weight babies 
        who have received ssi benefits for 12 months.--Section 
        1614(a)(3)(G) of such Act (42 U.S.C. 1382c(a)(3)(G)), as 
        amended by paragraph (1) of this subsection, is amended by 
        adding at the end the following:
    ``(iii)(I) The Commissioner shall redetermine the eligibility for--
            ``(aa) cash benefits under this title by reason of 
        disability of an individual whose low birth weight is a 
        contributing factor material to the Commissioner's 
        determination that the individual is disabled; and
            ``(bb) services under part C of an individual who is 
        eligible for such services by reason of low birth weight.
    ``(II) The redetermination required by subclause (I) shall be 
conducted once the individual has received such benefits for 12 months.
    ``(III) A redetermination under subclause (I) of this clause shall 
be considered a substitute for a review required under any other 
provision of this subparagraph.''.
            (3) Applicability of medicaid rules regarding counting of 
        certain assets and trusts of children.--Section 1613(c) of the 
        Social Security Act (42 U.S.C. 1382b(c)) is amended to read as 
        follows:

``treatment of certain assets and trusts in eligibility determinations 
                              for children

    ``(c) Subsections (c) and (d) of section 1917 shall apply to 
determinations of eligibility for benefits under this title in the case 
of an individual who has not attained 18 years of age in the same 
manner as such subsections apply to determinations of eligibility for 
medical assistance under a State plan under title XIX, except that--
            ``(1) the amount described in section 1917(c)(1)(E)(i)(II) 
        shall be the amount of cash benefits payable under this title 
        to an eligible individual who does not have an eligible spouse 
        and who has no income or resources;
            ``(2) the look-back date specified in section 1917(c)(1)(B) 
        shall be the date that is 36 months before the date the 
        individual has applied for benefits under this title; and
            ``(3) any assets in a trust over which the individual has 
        control shall be considered assets of the individual.''.
    (d) Conforming Amendments.--
            (1) Subsections (b)(1), (b)(2), (c)(3), (c)(5), and 
        (e)(1)(B) of section 1611 of the Social Security Act (42 U.S.C. 
        1382 (b)(1), (b)(2), (c)(3), (c)(5), and (e)(1)(B)) are each 
        amended by inserting ``cash'' before ``benefit under this 
        title''.
            (2) Section 1611(c)(1) of such Act (42 U.S.C. 1382(c)(1)) 
        is amended--
                    (A) by striking ``a benefit'' and inserting 
                ``benefits'';
                    (B) by striking ``such benefit'' and inserting 
                ``the cash benefit under this title''; and
                    (C) by striking ``and the amount of such benefits'' 
                and inserting ``benefits under this title and the 
                amount of any cash benefit under this title''.
            (3) Section 1611(c)(2) of such Act (42 U.S.C. 1382(c)(2)) 
        is amended--
                    (A) by striking ``such benefit'' and inserting 
                ``the cash benefit'';
                    (B) by inserting ``cash'' before ``benefits'' each 
                place such term appears; and
                    (C) in subpargraph (B), by inserting ``cash'' 
                before ``benefit''.
            (4) Section 1611(c)(3) of such Act (42 U.S.C. 1382(c)(3)) 
        is amended by inserting ``cash'' before ``benefits under this 
        title''.
            (5) Section 1611(e)(1)(G) of such Act (42 U.S.C. 
        1382(e)(1)(G)) is amended by inserting ``cash'' before 
        ``benefit of''.
            (6) Section 1614(a)(4) of such Act (42 U.S.C. 1382c(a)(4)) 
        is amended by inserting ``or impairment'' after ``disability'' 
        each place such term appears.
            (7) Section 1614(f)(1) of such Act (42 U.S.C. 1382c(f)(1)) 
        is amended by striking ``and the amount of benefits'' and 
        inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.
            (8) Section 1614(f)(2)(A) of such Act (42 U.S.C. 
        1382c(f)(2)(A)) is amended by striking ``and the amount of 
        benefits'' and inserting ``benefits under this title and the 
        amount of any cash benefit''.
            (9) Section 1614(f)(3) of such Act (42 U.S.C. 1382c(f)(3)) 
        is amended by striking ``and the amount of benefits'' and 
        inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.
            (10) Section 1616(e)(1) of such Act (42 U.S.C. 1382e(e)(1)) 
        is amended by inserting ``cash'' before ``supplemental''.
            (11) Section 1621(a) of such Act (42 U.S.C. 1382j(a)) is 
        amended by striking ``and the amount of benefits'' and 
        inserting ``benefits under this title and the amount of any 
        cash benefit under this title''.
            (12) Section 1631(a)(4) of such Act (42 U.S.C. 1383(a)(4)) 
        is amended by inserting ``cash'' before ``benefits'' the 1st 
        place such term appears in each of subparagraphs (A) and (B).
            (13) Section 1631(a)(7)(A) of such Act (42 U.S.C. 
        1383(a)(7)(A)) is amended by inserting ``cash'' before 
        ``benefits based''.
            (14) Section 1631(a)(8)(A) of such Act (42 U.S.C. 
        1383(a)(8)(A)) is amended by striking ``benefits based on 
        disability or blindness under this title'' and inserting 
        ``benefits under this title (other than by reason of age)''.
            (15) Section 1631(c) of such Act (42 U.S.C. 1383(c)) is 
        amended--
                    (A) by striking ``payment'' each place such term 
                appears and inserting ``benefits''; and
                    (B) by striking ``payments'' each place such term 
                appears and inserting ``benefits''.
            (16) Section 1631(e) of such Act (42 U.S.C. 1383(e)) is 
        amended--
                    (A) in paragraph (1)(B), by striking ``amounts of 
                such benefits'' and inserting ``amounts of cash 
                benefits under this title'';
                    (B) in paragraph (2), by inserting ``cash'' before 
                ``benefits'' each place such term appears;
                    (C) by redesignating the 2nd paragraph (6) and 
                paragraph (7) as paragraphs (7) and (8), respectively; 
                and
                    (D) in paragraph (7) (as so redesignated), by 
                inserting ``cash'' before ``benefits'' each place such 
                term appears.
            (17) Section 1631(g)(2) of such Act (42 U.S.C. 1383(g)(2)) 
        is amended by striking ``supplemental security income'' and 
        inserting ``cash''.
            (18) Section 1635(a) of such Act (42 U.S.C. 1383d(a)) is 
        amended by striking ``by reason of disability or blindness''.
    (e) Temporary Eligibility for Cash Benefits for Poor Disabled 
Children Residing in States Applying Alternative Income Eligibility 
Standards Under Medicaid.--
            (1) In general.--For the period beginning upon the 1st day 
        of the 1st month that begins 90 or more days after the date of 
        the enactment of this Act and ending upon the close of fiscal 
        year 1996, an individual described in paragraph (2) shall be 
        considered to be eligible for cash benefits under title XVI of 
        the Social Security Act, by reason of disability 
        notwithstanding that the individual does not meet any of the 
        conditions described in section 1614(a)(3)(A)(ii)(III) of such 
        Act.
            (2) Requirements.--For purposes of paragraph (1), an 
        individual described in this paragraph is an individual who--
                    (A) has not attained 18 years of age;
                    (B) meets the conditions described in subclauses 
                (I) and (II) of section 1614(a)(3)(A)(ii) of the Social 
                Security Act;
                    (C) resides in a State that, pursuant to section 
                1902(f) of such Act, restricts eligibility for medical 
                assistance under title XIX of such Act with respect to 
                aged, blind, and disabled individuals; and
                    (D) is not eligible for medical assistance under 
                the State plan under such title XIX.
    (f) Reduction in Cash Benefits Payable to Institutionalized 
Children Whose Medical Costs Are Covered by Private Insurance.--Section 
1611(e)(1)(B) of the Social Security Act (42 U.S.C. 1382(e)(1)(B)) is 
amended by inserting ``or under any health insurance policy issued by a 
private provider of such insurance'' after ``title XIX''.
    (g) Applicability.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by subsections (a)(1), (c), (d) and (f), and 
        section 1645(b)(2) of the Social Security Act (as added by the 
        amendment made by subsection (b) of this section), shall apply 
        to benefits for months beginning 90 or more days after the date 
        of the enactment of this Act, without regard to whether 
        regulations have been issued to implement such amendments.
            (2) Delayed applicability to current ssi recipients of 
        eligibility restrictions.--The amendments made by subsection 
        (a)(1) shall not apply, during the first 6 months that begin 
        after the month in which this Act becomes law, to an individual 
        who is a recipient of cash supplemental security income 
        benefits under title XVI of the Social Security Act for the 
        month in which this Act becomes law.
    (h) Regulations.--Within 3 months after the date of the enactment 
of this Act--
            (1) the Commissioner of Social Security shall prescribe 
        such regulations as may be necessary to implement the 
        amendments made by subsections (a)(1), (c), (d), and (f) and to 
        implement subsection (e); and
            (2) the Secretary of Health and Human Services shall 
        prescribe such regulations as may be necessary to implement 
        section 1645(b)(2) of the Social Security Act, as added by the 
        amendment made by subsection (b) of this section.

SEC. 14603. EXAMINATION OF MENTAL LISTINGS USED TO DETERMINE 
              ELIGIBILITY OF CHILDREN FOR SSI BENEFITS BY REASON OF 
              DISABILITY.

    Section 202(e)(2) of the Social Security Independence and Program 
Improvements Act of 1994 (42 U.S.C. 1382 note) is amended--
            (1) by striking ``and'' at the end of subparagraph (F); and
            (2) by redesignating subparagraph (G) as subparagraph (H) 
        and inserting after subparagraph (F) the following:
            ``(G) whether the criteria in the mental disorders listings 
        in the Listings of Impairments set forth in appendix 1 of 
        subpart P of part 404 of title 20, Code of Federal Regulations, 
        are appropriate to ensure that eligibility of individuals who 
        have not attained 18 years of age for cash benefits under the 
        supplemental security income program by reason of disability is 
        limited to those who have serious disabilities and for whom 
        such benefits are necessary to improve their condition or 
        quality of life; and''.

SEC. 14604. LIMITATION ON PAYMENTS TO PUERTO RICO, THE VIRGIN ISLANDS, 
              AND GUAM UNDER PROGRAMS OF AID TO THE AGED, BLIND, OR 
              DISABLED.

    Section 1108 of the Social Security Act (42 U.S.C. 1308), as 
amended by section 14104(e)(1) of this Act, is amended by inserting 
before ``The total'' the following:
    ``(a) Programs of Aid to the Aged, Blind, or Disabled.--The total 
amount certified by the Secretary of Health and Human Services under 
titles I, X, XIV, and XVI (as in effect without regard to the amendment 
made by section 301 of the Social Security Amendments of 1972)--
            ``(1) for payment to Puerto Rico shall not exceed 
        $18,053,940;
            ``(2) for payment to the Virgin Islands shall not exceed 
        $473,659; and
            ``(3) for payment to Guam shall not exceed $900,718.
    ``(b) Medicaid Programs.--''.
SEC. 14605. REPEAL OF MAINTENANCE OF EFFORT REQUIREMENTS APPLICABLE TO 
              OPTIONAL STATE PROGRAMS FOR SUPPLEMENTATION OF SSI 
              BENEFITS.

    Section 1618 of the Social Security Act (42 U.S.C. 1382g) is hereby 
repealed.

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.

    Section 1614(a) of the Social Security Act (42 U.S.C. 1382c(a)) is 
amended by adding at the end the following:
    ``(5) An individual shall not be considered an eligible individual 
for purposes of this title during the 10-year period beginning on the 
date the individual is found by a State to have made, or is convicted 
in Federal or State court of having made, a fraudulent statement or 
representation with respect to the place of residence of the individual 
in order to receive benefits simultaneously from 2 or more States under 
programs that are funded under part A of title IV, title XIX, the 
consolidated program of food assistance under chapter 2 of subtitle E 
of title XIV of the Personal Responsibility Act of 1995, or the Food 
Stamp Act of 1977 (as in effect before the effective date of such 
chapter), or benefits in 2 or more States under the supplemental 
security income program under title XVI.''.

SEC. 14607. DENIAL OF SSI BENEFITS FOR FUGITIVE FELONS AND PROBATION 
              AND PAROLE VIOLATORS.

    (a) In General.--Section 1611(c) of the Social Security Act (42 
U.S.C. 1382(e)), as amended by section 14601(b)(1) of this Act, is 
amended by inserting after paragraph (2) the following:
            ``(3) A person shall not be an eligible individual or 
        eligible spouse for purposes of this title with respect to any 
        month if, throughout the month, the person is--
                    ``(A) fleeing to avoid prosecution, or custody or 
                confinement after conviction, under the laws of the 
                place from which the person flees, for a crime, or an 
                attempt to commit a crime, which is a felony under the 
                laws of the place from which the person flees, or 
                which, in the case of the State of New Jersey, is a 
                high misdemeanor under the laws of such State; or
                    ``(B) violating a condition of probation or parole 
                imposed under Federal or State law.''.
    (b) Exchange of Information With Law Enforcement Agencies.--Section 
1631(e) of such Act (42 U.S.C. 1383(e)) is amended by inserting after 
paragraph (3) the following:
    ``(4) Notwithstanding any other provision of law, the Commissioner 
shall furnish any Federal, State, or local law enforcement officer, 
upon the request of the officer, with the current address of any 
recipient of benefits under this title, if the officer furnishes the 
agency with the name of the recipient and notifies the agency that--
            ``(A) the recipient--
                    ``(i) is fleeing to avoid prosecution, or custody 
                or confinement after conviction, under the laws of the 
                place from which the person flees, for a crime, or an 
                attempt to commit a crime, which is a felony under the 
                laws of the place from which the person flees, or 
                which, in the case of the State of New Jersey, is a 
                high misdemeanor under the laws of such State;
                    ``(ii) is violating a condition of probation or 
                parole imposed under Federal or State law; or
                    ``(iii) has information that is necessary for the 
                officer to conduct the officer's official duties;
            ``(B) the location or apprehension of the recipient is 
        within the official duties of the officer; and
            ``(C) the request is made in the proper exercise of such 
        duties.''.

SEC. 14608. REAPPLICATION REQUIREMENTS FOR ADULTS RECEIVING SSI 
              BENEFITS BY REASON OF DISABILITY.

    (a) In General.--Section 1614(a)(3)(G) of the Social Security Act 
(42 U.S.C. 1382c(a)(3)(G)), as amended by section 14602(c)(2) of this 
Act, is amended by adding at the end the following clause:
    ``(iv) In the case of an individual who has attained 18 years of 
age and for whom a determination has been made of eligibility for a 
benefit under this title by reason of disability, the following 
applies:
            ``(I) Subject to the provisions of this clause, the 
        determination of eligibility is effective for the 3-year period 
        beginning on the date of the determination, and the eligibility 
        of the individual lapses unless a determination of continuing 
        eligibility is made before the end of such period, and before 
        the end of each subsequent 3-year period. This subclause ceases 
        to apply to the individual upon the individual attaining 65 
        years of age. This subclause does not apply to the individual 
        if the individual has an impairment that is not expected to 
        improve (or a combination of impairments that are not expected 
        to improve).
            ``(II) With respect to a determination under subclause (I) 
        of whether the individual continues to be eligible for the 
        benefit (in this clause referred to as a `redetermination'), 
        the Commissioner may not make the redetermination unless the 
        individual submits to the Commissioner an application 
        requesting the redetermination. If such an application is 
        submitted, the Commissioner shall make the redetermination. 
        This subclause is subject to subclause (V).
            ``(III) If as of the date on which this clause takes effect 
        the individual has been receiving the benefit for three years 
        or less, the first period under subclause (I) for the 
        individual is deemed to end on the expiration of the period 
        beginning on the date on which this clause takes effect and 
        continuing through a number of months equal to 12 plus a number 
        equal to 36 minus the number of months the individual has been 
        receiving the benefit.
            ``(IV) If as of the date on which this clause takes effect 
        the individual has been receiving the benefit for five years or 
        less, but for more than three years, the first period under 
        subclause (I) for the individual is deemed to end on the 
        expiration of the 1-year period beginning on the date on which 
        this clause takes effect.
            ``(V) If as of the date on which this clause takes effect 
        the individual has been receiving the benefit for more than 
        five years, the Commissioner shall make redeterminations under 
        subclause (I) and may not require the individual to submit 
        applications for the redeterminations. The first 3-year period 
        under subclause (I) for the individual is deemed to begin upon 
        the expiration of the period beginning on the date on which 
        this clause takes effect and ending upon the termination of a 
        number of years equal to the lowest number (greater than zero) 
        that can be obtained by subtracting the number of years that 
        the individual has been receiving the benefit from a number 
        that is a multiple of three.
            ``(VI) If the individual first attains 18 years of age on 
        or after the date on which this clause takes effect, the first 
        3-year period under subclause (I) for the individual is deemed 
        to end on the date on which the individual attains such age.
            ``(VII) Not later than one year prior to the date on which 
        a determination under subclause (I) expires, the Commissioner 
        shall (except in the case of an individual to whom subclause 
        (V) applies) provide to the individual a written notice 
        explaining the applicability of this clause to the individual, 
        including an explanation of the effect of failing to submit the 
        application. If the individual submits the application not 
        later than 180 days prior to such date and the Commissioner 
        does not make the redetermination before such date, the 
        Commissioner shall continue to provide the benefit pending the 
        redetermination and shall publish in the Federal Register a 
        notice that the Commissioner was unable to make the 
        redetermination by such date.
            ``(VIII) If the individual fails to submit the application 
        under subclause (II) by the end of the applicable period under 
        subclause (I), the individual may apply for a redetermination. 
        The Commissioner shall make the redetermination for the 
        individual only after making redeterminations for individuals 
        for whom eligibility has not lapsed pursuant to subclause 
        (I).''.
    (b) Effective Date.--The amendment made by subsection (a) takes 
effect upon the expiration of the 9-month period beginning on the date 
of the enactment of this Act.
    (c) Conforming Repeal.--Section 207 of the Social Security 
Independence and Program Improvements Act of 1994 (42 U.S.C. 1382 note; 
108 Stat. 1516) is hereby repealed.

SEC. 14609. STRIKING OF RESTRICTIONS REGARDING DETERMINATION OF 
              INELIGIBILITY.

    Section 1614(a) of the Social Security Act (42 U.S.C. 1382c(a)) is 
amended by striking paragraph (4).

SEC. 14610. NARROWING OF SSI ELIGIBILITY ON BASIS OF MENTAL 
              IMPAIRMENTS.

    (a) In General.--Section 1614(a)(3)(A)(i) of the Social Security 
Act (42 U.S.C. 1382c(a)), as designated by section 14602(a)(1)(A) of 
this Act, is amended by adding at the end the following sentence: ``In 
making determinations under this clause regarding the severity of 
mental impairments, the Secretary shall revise the regulations under 
subpart P of part 404 of title 20, Code of Federal Regulations, to 
accomplish the result that (relative to such regulations as in effect 
prior to the date on which this sentence takes effect) less weight is 
given to criteria regarding concentration, persistence (and pace), and 
ability to tolerate increased mental demand associated with competitive 
work, and that, accordingly, the eligibility criteria regarding mental 
impairments are narrowed.''.
    (b) Final Regulations.--The final rule for the regulations required 
in subsection (a) shall be issued before the expiration of the 9-month 
period beginning on the date of the enactment of this Act,and shall 
take effect upon the expiration of such period.

                       Subtitle G--Child Support

SEC. 14700. REFERENCES.

    Except as otherwise specifically provided, wherever in this 
subtitle an amendment is expressed in terms of an amendment to or 
repeal of a section or other provision, the reference shall be 
considered to be made to that section or other provision of the Social 
Security Act.

     CHAPTER 1--ELIGIBILITY FOR SERVICES; DISTRIBUTION OF PAYMENTS

SEC. 14701. STATE OBLIGATION TO PROVIDE CHILD SUPPORT ENFORCEMENT 
              SERVICES.

    (a) State Plan Requirements.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) by striking paragraph (4) and inserting the following:
            ``(4) provide that the State will--
                    ``(A) provide services relating to the 
                establishment of paternity or the establishment, 
                modification, or enforcement of child support 
                obligations, as appropriate, under the plan with 
                respect to--
                            ``(i) each child for whom cash assistance 
                        is provided under the State program funded 
                        under part A of this title, benefits or 
                        services are provided under the State program 
                        funded under part B of this title, or medical 
                        assistance is provided under the State plan 
                        approved under title XIX, unless the State 
                        agency administering the plan determines (in 
                        accordance with paragraph (28)) that it is 
                        against the best interests of the child to do 
                        so; and
                            ``(ii) any other child, if an individual 
                        applies for such services with respect to the 
                        child; and
                    ``(B) enforce any support obligation established 
                with respect to--
                            ``(i) a child with respect to whom the 
                        State provides services under the plan; or
                            ``(ii) the custodial parent of such a 
                        child.''; and
            (2) in paragraph (6)--
                    (A) by striking ``provide that'' and inserting 
                ``provide that--'';
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) services under the plan shall be made 
                available to nonresidents on the same terms as to 
                residents;'';
                    (C) in subparagraph (B), by inserting ``on 
                individuals not receiving assistance under any State 
                program funded under part A'' after ``such services 
                shall be imposed'';
                    (D) in each of subparagraphs (B), (C), (D), and 
                (E)--
                            (i) by indenting the subparagraph in the 
                        same manner as, and aligning the left margin of 
                        the subparagraph with the left margin of, the 
                        matter inserted by subparagraph (B) of this 
                        paragraph; and
                            (ii) by striking the final comma and 
                        inserting a semicolon; and
                    (E) in subparagraph (E), by indenting each of 
                clauses (i) and (ii) 2 additional ems.
    (b) Conforming Amendments.--
            (1) Section 452(b) (42 U.S.C. 652(b)) is amended by 
        striking ``454(6)'' and inserting ``454(4)''.
            (2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended by striking ``454(6)'' each place it appears and 
        inserting ``454(4)(A)(ii)''.
            (3) Section 466(a)(3)(B) (42 U.S.C. 666(a)(3)(B)) is 
        amended by striking ``in the case of overdue support which a 
        State has agreed to collect under section 454(6)'' and 
        inserting ``in any other case''.
            (4) Section 466(e) (42 U.S.C. 666(e)) is amended by 
        striking ``paragraph (4) or (6) of section 454'' and inserting 
        ``section 454(4)''.

SEC. 14702. DISTRIBUTION OF CHILD SUPPORT COLLECTIONS.

    (a) In General.--Section 457 (42 U.S.C. 657) is amended to read as 
follows:

``SEC. 457. DISTRIBUTION OF COLLECTED SUPPORT.

    ``(a) In General.--An amount collected on behalf of a family as 
support by a State pursuant to a plan approved under this part shall be 
distributed as follows:
            ``(1) Families receiving cash assistance.--In the case of a 
        family receiving cash assistance from the State, the State 
        shall--
                    ``(A) retain, or distribute to the family, the 
                State share of the amount so collected; and
                    ``(B) pay to the Federal Government the Federal 
                share of the amount so collected.
            ``(2) Families that formerly received cash assistance.--In 
        the case of a family that formerly received cash assistance 
        from the State:
                    ``(A) Current support payments.--To the extent that 
                the amount so collected does not exceed the amount 
                required to be paid to the family for the month in 
                which collected, the State shall distribute the amount 
                so collected to the family.
                    ``(B) Payments of arrearages.--To the extent that 
                the amount so collected exceeds the amount required to 
                be paid to the family for the month in which collected, 
                the State shall distribute the amount so collected as 
                follows:
                            ``(i) Distribution to the family to satisfy 
                        arrearages that accrued before or after the 
                        family received cash assistance.--The State 
                        shall distribute the amount so collected to the 
                        family to the extent necessary to satisfy any 
                        support arrears with respect to the family that 
                        accrued before or after the family received 
                        cash assistance from the State.
                            ``(ii) Reimbursement of governments for 
                        assistance provided to the family.--To the 
                        extent that clause (i) does not apply to the 
                        amount, the State shall retain the State share 
                        of the amount so collected, and pay to the 
                        Federal Government the Federal share of the 
                        amount so collected, to the extent necessary to 
                        reimburse amounts paid to the family as cash 
                        assistance from the State.
                            ``(iii) Distribution of the remainder to 
                        the family.--To the extent that neither clause 
                        (i) nor clause (ii) applies to the amount so 
                        collected, the State shall distribute the 
                        amount to the family.
            ``(3) Families that never received cash assistance.--In the 
        case of any other family, the State shall distribute the amount 
        so collected to the family.
    ``(b) Definitions.--As used in subsection (a):
            ``(1) Cash assistance.--The term `cash assistance from the 
        State' means--
                    ``(A) cash assistance under the State program 
                funded under part A or under the State plan approved 
                under part A of this title (as in effect before October 
                1, 1995); or
                    ``(B) cash benefits under the State program funded 
                under part B or under the State plan approved under 
                part B or E of this title (as in effect before October 
                1, 1995).
            ``(2) Federal share.--The term `Federal share' means, with 
        respect to an amount collected by the State to satisfy a 
        support obligation owed to a family for a time period--
                    ``(A) the greatest Federal medical assistance 
                percentage in effect for the State for fiscal year 1995 
                or any succeeding fiscal year; or
                    ``(B) if support is not owed to the family for any 
                month for which the family received aid to families 
                with dependent children under the State plan approved 
                under part A of this title (as in effect before October 
                1, 1995), the Federal reimbursement percentage for the 
                fiscal year in which the time period occurs.
            ``(3) Federal medical assistance percentage.--The term 
        `Federal medical assistance percentage' means--
                    ``(A) the Federal medical assistance percentage (as 
                defined in section 1118), in the case of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa; or
                    ``(B) the Federal medical assistance percentage (as 
                defined in section 1905(b)) in the case of any other 
                State.
            ``(4) Federal reimbursement percentage.--The term `Federal 
        reimbursement percentage' means, with respect to a fiscal 
        year--
                    ``(A) the total amount paid to the State under 
                section 403 for the fiscal year; divided by
                    ``(B) the total amount expended by the State to 
                carry out the State program under part A during the 
                fiscal year.
            ``(5) State share.--The term `State share' means 100 
        percent minus the Federal share.
    ``(c) Continuation of Services for Families Ceasing To Receive 
Assistance Under the State Program Funded Under Part A.--When a family 
with respect to which services are provided under a State plan approved 
under this part ceases to receive assistance under the State program 
funded under part A, the State shall provide appropriate notice to the 
family and continue to provide such services, subject to the same 
conditions and on the same basis as in the case of individuals to whom 
services are furnished under section 454, except that an application or 
other request to continue services shall not be required of such a 
family and section 454(6)(B) shall not apply to the family.''.
    (b) Effective Date.--
            (1) General rule.--Except as provided in paragraph (2), the 
        amendment made by subsection (a) shall become effective on 
        October 1, 1999.
            (2) Earlier effective date for rules relating to 
        distribution of support collected for families receiving cash 
        assistance.--Section 457(a)(1) of the Social Security Act, as 
        added by the amendment made by subsection (a), shall become 
        effective on October 1, 1995.

SEC. 14703. PRIVACY SAFEGUARDS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) by striking ``and'' at the end of paragraph (23);
            (2) by striking the period at the end of paragraph (24) and 
        inserting ``; and''; and
            (3) by adding after paragraph (24) the following:
            ``(25) will have in effect safeguards, applicable to all 
        confidential information handled by the State agency, that are 
        designed to protect the privacy rights of the parties, 
        including--
                    ``(A) safeguards against unauthorized use or 
                disclosure of information relating to proceedings or 
                actions to establish paternity, or to establish or 
                enforce support;
                    ``(B) prohibitions against the release of 
                information on the whereabouts of one party to another 
                party against whom a protective order with respect to 
                the former party has been entered; and
                    ``(C) prohibitions against the release of 
                information on the whereabouts of one party to another 
                party if the State has reason to believe that the 
                release of the information may result in physical or 
                emotional harm to the former party.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
become effective on October 1, 1997.

                  CHAPTER 2--LOCATE AND CASE TRACKING

SEC. 14711. STATE CASE REGISTRY.

    Section 454A, as added by section 14745(a)(2) of this Act, is 
amended by adding at the end the following:
    ``(e) State Case Registry.--
            ``(1) Contents.--The automated system required by this 
        section shall include a registry (which shall be known as the 
        `State case registry') that contains records with respect to--
                    ``(A) each case in which services are being 
                provided by the State agency under the State plan 
                approved under this part; and
                    ``(B) each support order established or modified in 
                the State on or after October 1, 1998.
            ``(2) Linking of local registries.--The State case registry 
        may be established by linking local case registries of support 
        orders through an automated information network, subject to 
        this section.
            ``(3) Use of standardized data elements.--Such records 
        shall use standardized data elements for both parents (such as 
        names, social security numbers and other uniform identification 
        numbers, dates of birth, and case identification numbers), and 
        contain such other information (such as on case status) as the 
        Secretary may require.
            ``(4) Payment records.--Each case record in the State case 
        registry with respect to which services are being provided 
        under the State plan approved under this part and with respect 
        to which a support order has been established shall include a 
        record of--
                    ``(A) the amount of monthly (or other periodic) 
                support owed under the order, and other amounts 
                (including arrears, interest or late payment penalties, 
                and fees) due or overdue under the order;
                    ``(B) any amount described in subparagraph (A) that 
                has been collected;
                    ``(C) the distribution of such collected amounts;
                    ``(D) the birth date of any child for whom the 
                order requires the provision of support; and
                    ``(E) the amount of any lien imposed with respect 
                to the order pursuant to section 466(a)(4).
            ``(5) Updating and monitoring.--The State agency operating 
        the automated system required by this section shall promptly 
        establish and maintain, and regularly monitor, case records in 
        the State case registry with respect to which services are 
        being provided under the State plan approved under this part, 
        on the basis of--
                    ``(A) information on administrative actions and 
                administrative and judicial proceedings and orders 
                relating to paternity and support;
                    ``(B) information obtained from comparison with 
                Federal, State, or local sources of information;
                    ``(C) information on support collections and 
                distributions; and
                    ``(D) any other relevant information.
    ``(f) Information Comparisons and Other Disclosures of 
Information.--The State shall use the automated system required by this 
section to extract information from (at such times, and in such 
standardized format or formats, as may be required by the Secretary), 
to share and compare information with, and to receive information from, 
other data bases and information comparison services, in order to 
obtain (or provide) information necessary to enable the State agency 
(or the Secretary or other State or Federal agencies) to carry out this 
part, subject to section 6103 of the Internal Revenue Code of 1986. 
Such information comparison activities shall include the following:
            ``(1) Federal case registry of child support orders.--
        Furnishing to the Federal Case Registry of Child Support Orders 
        established under section 453(h) (and update as necessary, with 
        information including notice of expiration of orders) the 
        minimum amount of information on child support cases recorded 
        in the State case registry that is necessary to operate the 
        registry (as specified by the Secretary in regulations).
            ``(2) Federal parent locator service.--Exchanging 
        information with the Federal Parent Locator Service for the 
        purposes specified in section 453.
            ``(3) Temporary family assistance and medicaid agencies.--
        Exchanging information with State agencies (of the State and of 
        other States) administering programs funded under part A, 
        programs operated under State plans under title XIX, and other 
        programs designated by the Secretary, as necessary to perform 
        State agency responsibilities under this part and under such 
        programs.
            ``(4) Intra- and interstate information comparisons.--
        Exchanging information with other agencies of the State, 
        agencies of other States, and interstate information networks, 
        as necessary and appropriate to carry out (or assist other 
        States to carry out) the purposes of this part.''.

SEC. 14712. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by section 14703(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (24);
            (2) by striking the period at the end of paragraph (25) and 
        inserting ``; and''; and
            (3) by adding after paragraph (25) the following:
            ``(26) provide that, on and after October 1, 1998, the 
        State agency will--
                    ``(A) operate a State disbursement unit in 
                accordance with section 454B; and
                    ``(B) have sufficient State staff (consisting of 
                State employees) and (at State option) contractors 
                reporting directly to the State agency to--
                            ``(i) monitor and enforce support 
                        collections through the unit (including 
                        carrying out the automated data processing 
                        responsibilities described in section 454A(g)); 
                        and
                            ``(ii) take the actions described in 
                        section 466(c)(1) in appropriate cases.''.
    (b) Establishment of State Disbursement Unit.--Part D of title IV 
(42 U.S.C. 651-669), as amended by section 14745(a)(2) of this Act, is 
amended by inserting after section 454A the following:

``SEC. 454B. COLLECTION AND DISBURSEMENT OF SUPPORT PAYMENTS.

    ``(a) State Disbursement Unit.--
            ``(1) In general.--In order for a State to meet the 
        requirements of this section, the State agency must establish 
        and operate a unit (which shall be known as the `State 
        disbursement unit') for the collection and disbursement of 
        payments under support orders in all cases being enforced by 
        the State pursuant to section 454(4).
            ``(2) Operation.--The State disbursement unit shall be 
        operated--
                    ``(A) directly by the State agency (or 2 or more 
                State agencies under a regional cooperative agreement), 
                or (to the extent appropriate) by a contractor 
                responsible directly to the State agency; and
                    ``(B) in coordination with the automated system 
                established by the State pursuant to section 454A.
            ``(3) Linking of local disbursement units.--The State 
        disbursement unit may be established by linking local 
        disbursement units through an automated information network, 
        subject to this section. The Secretary must agree that the 
        system will not cost more nor take more time to establish than 
        a centralized system. In addition, employers shall be given 1 
        location to which income withholding is sent.
    ``(b) Required Procedures.--The State disbursement unit shall use 
automated procedures, electronic processes, and computer-driven 
technology to the maximum extent feasible, efficient, and economical, 
for the collection and disbursement of support payments, including 
procedures--
            ``(1) for receipt of payments from parents, employers, and 
        other States, and for disbursements to custodial parents and 
        other obligees, the State agency, and the agencies of other 
        States;
            ``(2) for accurate identification of payments;
            ``(3) to ensure prompt disbursement of the custodial 
        parent's share of any payment; and
            ``(4) to furnish to any parent, upon request, timely 
        information on the current status of support payments under an 
        order requiring payments to be made by or to the parent.
    ``(c) Timing of Disbursements.--The State disbursement unit shall 
distribute all amounts payable under section 457(a) within 2 business 
days after receipt from the employer or other source of periodic 
income, if sufficient information identifying the payee is provided.
    ``(d) Business Day Defined.--As used in this section, the term 
`business day' means a day on which State offices are open for regular 
business.''.
    (c) Use of Automated System.--Section 454A, as added by section 
14745(a)(2) of this Act and as amended by section 14711 of this Act, is 
amended by adding at the end the following:
    ``(g) Collection and Distribution of Support Payments.--
            ``(1) In general.--The State shall use the automated system 
        required by this section, to the maximum extent feasible, to 
        assist and facilitate the collection and disbursement of 
        support payments through the State disbursement unit operated 
        under section 454B, through the performance of functions, 
        including, at a minimum--
                    ``(A) transmission of orders and notices to 
                employers (and other debtors) for the withholding of 
                wages (and other income)--
                            ``(i) within 2 business days after receipt 
                        (from a court, another State, an employer, the 
                        Federal Parent Locator Service, or another 
                        source recognized by the State) of notice of, 
                        and the income source subject to, such 
                        withholding; and
                            ``(ii) using uniform formats prescribed by 
                        the Secretary;
                    ``(B) ongoing monitoring to promptly identify 
                failures to make timely payment of support; and
                    ``(C) automatic use of enforcement procedures 
                (including procedures authorized pursuant to section 
                466(c)) where payments are not timely made.
            ``(2) Business day defined.--As used in paragraph (1), the 
        term `business day' means a day on which State offices are open 
        for regular business.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective on October 1, 1998.

SEC. 14713. STATE DIRECTORY OF NEW HIRES.

    (a) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 14703(a) and 14712(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (25);
            (2) by striking the period at the end of paragraph (26) and 
        inserting ``; and''; and
            (3) by adding after paragraph (26) the following:
            ``(27) provide that, on and after October 1, 1997, the 
        State will operate a State Directory of New Hires in accordance 
        with section 453A.''.
    (b) State Directory of New Hires.--Part D of title IV (42 U.S.C. 
651-669) is amended by inserting after section 453 the following:

``SEC. 453A. STATE DIRECTORY OF NEW HIRES.

    ``(a) Establishment.--
            ``(1) In general.--Not later than October 1, 1997, each 
        State shall establish an automated directory (to be known as 
        the `State Directory of New Hires') which shall contain 
        information supplied in accordance with subsection (b) by 
        employers and labor organizations on each newly hired employee.
            ``(2) Definitions.--As used in this section:
                    ``(A) Employee.--The term `employee'--
                            ``(i) means an individual who is an 
                        employee within the meaning of chapter 24 of 
                        the Internal Revenue Code of 1986; and
                            ``(ii) does not include an employee of a 
                        Federal or State agency performing intelligence 
                        or counterintelligence functions, if the head 
                        of such agency has determined that reporting 
                        pursuant to paragraph (1) with respect to the 
                        employee could endanger the safety of the 
                        employee or compromise an ongoing investigation 
                        or intelligence mission.
                    ``(B) Governmental employers.--The term `employer' 
                includes any governmental entity.
                    ``(C) Labor organization.--The term `labor 
                organization' shall have the meaning given such term in 
                section 2(5) of the National Labor Relations Act, and 
                includes any entity (also known as a `hiring hall') 
                which is used by the organization and an employer to 
                carry out requirements described in section 8(f)(3) of 
                such Act of an agreement between the organization and 
                the employer.
    ``(b) Employer Information.--
            ``(1) Reporting requirement.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), each employer shall furnish to the 
                Directory of New Hires of the State in which a newly 
                hired employee works a report that contains the name, 
                address, and social security number of the employee, 
                and the name of, and identifying number assigned under 
                section 6109 of the Internal Revenue Code of 1986 to, 
                the employer.
                    ``(B) Multistate employers.--An employer who has 
                employees who are employed in 2 or more States may 
                comply with subparagraph (A) by transmitting the report 
                described in subparagraph (A) magnetically or 
                electronically to the State in which the greatest 
                number of employees of the employer are employed.
            ``(2) Timing of report.--The report required by paragraph 
        (1) with respect to an employee shall be made not later than 
        the later of--
                    ``(A) 15 days after the date the employer hires the 
                employee; or
                    ``(B) the date the employee first receives wages or 
                other compensation from the employer.
    ``(c) Reporting Format and Method.--Each report required by 
subsection (b) shall be made on a W-4 form or the equivalent, and may 
be transmitted by first class mail, magnetically, or electronically.
    ``(d) Civil Money Penalties on Noncomplying Employers.--
            ``(1) In general.--An employer that fails to comply with 
        subsection (b) with respect to an employee shall be subject to 
        a civil money penalty of--
                    ``(A) $25; or
                    ``(B) $500 if, under State law, the failure is the 
                result of a conspiracy between the employer and the 
                employee to not supply the required report or to supply 
                a false or incomplete report.
            ``(2) Applicability of section 1128.--Section 1128 (other 
        than subsections (a) and (b) of such section) shall apply to a 
        civil money penalty under paragraph (1) of this subsection in 
        the same manner as such section applies to a civil money 
        penalty or proceeding under section 1128A(a).
    ``(e) Information Comparisons.--
            ``(1) In general.--Not later than October 1, 1997, an 
        agency designated by the State shall, directly or by contract, 
        conduct automated comparisons of the social security numbers 
        reported by employers pursuant to subsection (b) and the social 
        security numbers appearing in the records of the State case 
        registry for cases being enforced under the State plan.
            ``(2) Notice of match.--When an information comparison 
        conducted under paragraph (1) reveals a match with respect to 
        the social security number of an individual required to provide 
        support under a support order, the State Directory of New Hires 
        shall provide the agency administering the State plan approved 
        under this part of the appropriate State with the name, 
        address, and social security number of the employee to whom the 
        social security number is assigned, and the name of, and 
        identifying number assigned under section 6109 of the Internal 
        Revenue Code of 1986 to, the employer.
    ``(f) Transmission of Information.--
            ``(1) Transmission of wage withholding notices to 
        employers.--Within 2 business days after the date information 
        regarding a newly hired employee is entered into the State 
        Directory of New Hires, the State agency enforcing the 
        employee's child support obligation shall transmit a notice to 
        the employer of the employee directing the employer to withhold 
        from the wages of the employee an amount equal to the monthly 
        (or other periodic) child support obligation of the employee, 
        unless the employee's wages are not subject to withholding 
        pursuant to section 466(b)(3).
            ``(2) Transmissions to the national directory of new 
        hires.--
                    ``(A) New hire information.--Within 4 business days 
                after the State Directory of New Hires receives 
                information from employers pursuant to this section, 
                the State Directory of New Hires shall furnish the 
                information to the National Directory of New Hires.
                    ``(B) Wage and unemployment compensation 
                information.--The State Directory of New Hires shall, 
                on a quarterly basis, furnish to the National Directory 
                of New Hires extracts of the reports required under 
                section 303(a)(6) to be made to the Secretary of Labor 
                concerning the wages and unemployment compensation paid 
                to individuals, by such dates, in such format, and 
                containing such information as the Secretary of Health 
                and Human Services shall specify in regulations.
            ``(3) Business day defined.--As used in this subsection, 
        the term `business day' means a day on which State offices are 
        open for regular business.
    ``(g) Other Uses of New Hire Information.--
            ``(1) Location of child support obligors.--The agency 
        administering the State plan approved under this part shall use 
        information received pursuant to subsection (e)(2) to locate 
        individuals for purposes of establishing paternity and 
        establishing, modifying, and enforcing child support 
        obligations.
            ``(2) Verification of eligibility for certain programs.--A 
        State agency responsible for administering a program specified 
        in section 1137(b) shall have access to information reported by 
        employers pursuant to subsection (b) of this section for 
        purposes of verifying eligibility for the program.
            ``(3) Administration of employment security and workers 
        compensation.--State agencies operating employment security and 
        workers' compensation programs shall have access to information 
        reported by employers pursuant to subsection (b) for the 
        purposes of administering such programs.''.

SEC. 14714. AMENDMENTS CONCERNING INCOME WITHHOLDING.

    (a) Mandatory Income Withholding.--
            (1) In general.--Section 466(a)(1) (42 U.S.C. 666(a)(1)) is 
        amended to read as follows:
            ``(1) Income withholding.--
                    ``(A) Under orders enforced under the state plan.--
                Procedures described in subsection (b) for the 
                withholding from income of amounts payable as support 
                in cases subject to enforcement under the State plan.
                    ``(B) Under certain orders predating change in 
                requirement.--Procedures under which the wages of a 
                person with a support obligation imposed by a support 
                order issued (or modified) in the State before October 
                1, 1996, if not otherwise subject to withholding under 
                subsection (b), shall become subject to withholding as 
                provided in subsection (b) if arrearages occur, without 
                the need for a judicial or administrative hearing.''.
            (2) Conforming amendments.--
                    (A) Section 466(a)(8)(B)(iii) (42 U.S.C. 
                666(a)(8)(B)(iii)) is amended--
                            (i) by striking ``(5),''; and
                            (ii) by inserting ``, and, at the option of 
                        the State, the requirements of subsection 
                        (b)(5)'' before the period.
                    (B) Section 466(b) (42 U.S.C. 666(b)) is amended in 
                the matter preceding paragraph
                 (1), by striking ``subsection (a)(1)'' and inserting 
``subsection (a)(1)(A)''.
                    (C) Section 466(b)(5) (42 U.S.C. 666(b)(5)) is 
                amended by striking all that follows ``administered 
                by'' and inserting ``the State through the State 
                disbursement unit established pursuant to section 454B, 
                in accordance with the requirements of section 454B.''.
                    (D) Section 466(b)(6)(A) (42 U.S.C. 666(b)(6)(A)) 
                is amended--
                            (i) in clause (i), by striking ``to the 
                        appropriate agency'' and all that follows and 
                        inserting ``to the State disbursement unit 
                        within 2 business days after the date the 
                        amount would (but for this subsection) have 
                        been paid or credited to the employee, for 
                        distribution in accordance with this part.'';
                            (ii) in clause (ii), by inserting ``be in a 
                        standard format prescribed by the Secretary, 
                        and'' after ``shall''; and
                            (iii) by adding at the end the following:
            ``(iii) As used in this subparagraph, the term `business 
        day' means a day on which State offices are open for regular 
        business.''.
                    (E) Section 466(b)(6)(D) (42 U.S.C. 666(b)(6)(D)) 
                is amended by striking ``any employer'' and all that 
                follows and inserting the following:
        ``any employer who--
                    ``(i) discharges from employment, refuses to 
                employ, or takes disciplinary action against any absent 
                parent subject to wage withholding required by this 
                subsection because of the existence of such withholding 
                and the obligations or additional obligations which is 
                imposes upon the employer; or
                    ``(ii) fails to withhold support from wages, or to 
                pay such amounts to the State disbursement unit in 
                accordance with this subsection.''.
                    (F) Section 466(b) (42 U.S.C. 666(b)) is amended by 
                adding at the end the following:
            ``(11) Procedures under which the agency administering the 
        State plan approved under this part may execute a withholding 
        order through electronic means and without advance notice to 
        the obligor.''.
    (b) Conforming Amendment.--Section 466(c) (42 U.S.C. 666(c)) is 
repealed.

SEC. 14715. LOCATOR INFORMATION FROM INTERSTATE NETWORKS.

    Section 466(a) (42 U.S.C. 666(a)) is amended by adding at the end 
the following:
            ``(12) Locator information from interstate networks.--
        Procedures to ensure that all Federal and State agencies 
        conducting activities under this part have access to any system 
        used by the State to locate an individual for purposes relating 
        to motor vehicles or law enforcement.''.

SEC. 14716. EXPANSION OF THE FEDERAL PARENT LOCATOR SERVICE.

    (a) Expanded Authority To Locate Individuals and Assets.--Section 
453 (42 U.S.C. 653) is amended--
            (1) in subsection (a), by striking all that follows 
        ``subsection (c))'' and inserting ``, for the purpose of 
        establishing parentage, establishing, setting the amount of, 
        modifying, or enforcing child support obligations--
            ``(1) information on, or facilitating the discovery of, the 
        location of any individual--
                    ``(A) who is under an obligation to pay child 
                support;
                    ``(B) against whom such an obligation is sought; or
                    ``(C) to whom such an obligation is owed,
        including the individual's social security number (or numbers), 
        most recent address, and the name, address, and employer 
        identification number of the individual's employer; and
            ``(2) information on the individual's wages (or other 
        income) from, and benefits of, employment (including rights to 
        or enrollment in group health care coverage).''; and
            (2) in subsection (b), in the matter preceding paragraph 
        (1), by striking ``social security'' and all that follows 
        through ``absent parent'' and inserting ``information described 
        in subsection (a)''.
    (b) Reimbursement for Information From Federal Agencies.--Section 
453(e)(2) (42 U.S.C. 653(e)(2)) is amended in the 4th sentence by 
inserting ``in an amount which the Secretary determines to be 
reasonable payment for the information exchange (which amount shall not 
include payment for the costs of obtaining, compiling, or maintaining 
the information)'' before the period.
    (c) Reimbursement for Reports by State Agencies.--Section 453 (42 
U.S.C. 653) is amended by adding at the end the following:
    ``(g) The Secretary may reimburse Federal and State agencies for 
the costs incurred by such entities in furnishing information requested 
by the Secretary under this section in an amount which the Secretary 
determines to be reasonable payment for the information exchange (which 
amount shall not include payment for the costs of obtaining, compiling, 
or maintaining the information).''.
    (d) Technical Amendments.--
            (1) Sections 452(a)(9), 453(a), 453(b), 463(a), 463(e), and 
        463(f) (42 U.S.C. 652(a)(9), 653(a), 653(b), 663(a), 663(e), 
        and 663(f)) are each amended by inserting ``Federal'' before 
        ``Parent'' each place such term appears.
            (2) Section 453 (42 U.S.C. 653) is amended in the heading 
        by adding ``federal'' before ``parent''.
    (e) New Components.--Section 453 (42 U.S.C. 653), as amended by 
subsection (c) of this section, is amended by adding at the end the 
following:
    ``(h) Federal Case Registry of Child Support Orders.--
            ``(1) In general.--Not later than October 1, 1998, in order 
        to assist States in administering programs under State plans 
        approved under this part and programs funded under part A, and 
        for the other purposes specified in this section, the Secretary 
        shall establish and maintain in the Federal Parent Locator 
        Service an automated registry (which shall be known as the 
        `Federal Case Registry of Child Support Orders'), which shall 
        contain abstracts of support orders and other information 
        described in paragraph (2) with respect to each case in each 
        State case registry maintained pursuant to section 454A(e), as 
        furnished (and regularly updated), pursuant to section 454A(f), 
        by State agencies administering programs under this part.
            ``(2) Case information.--The information referred to in 
        paragraph (1) with respect to a case shall be such information 
        as the Secretary may specify in regulations (including the 
        names, social security numbers or other uniform identification 
        numbers, and State case identification numbers) to identify the 
        individuals who owe or are owed support (or with respect to or 
        on behalf of whom support obligations are sought to be 
        established), and the State or States which have the case.
    ``(i) National Directory of New Hires.--
            ``(1) In general.--In order to assist States in 
        administering programs under State plans approved under this 
        part and programs funded under part A, and for the other 
        purposes specified in this section, the Secretary shall, not 
        later than October 1, 1996, establish and maintain in the 
        Federal Parent Locator Service an automated directory to be 
        known as the National Directory of New Hires, which shall 
        contain the information supplied pursuant to section 
        453A(f)(2).
            ``(2) Administration of federal tax laws.--The Secretary of 
        the Treasury shall have access to the information in the 
        Federal Directory of New Hires for purposes of administering 
        section 32 of the Internal Revenue Code of 1986, or the advance 
        payment of the earned income tax credit under section 3507 of 
        such Code, and verifying a claim with respect to employment in 
        a tax return.
    ``(j) Information Comparisons and Other Disclosures.--
            ``(1) Verification by social security administration.--
                    ``(A) The Secretary shall transmit information on 
                individuals and employers maintained under this section 
                to the Social Security Administration to the extent 
                necessary for verification in accordance with 
                subparagraph (B).
                    ``(B) The Social Security Administration shall 
                verify the accuracy of, correct, or supply to the 
                extent possible, and report to the Secretary, the 
                following information supplied by the Secretary 
                pursuant to subparagraph (A):
                            ``(i) The name, social security number, and 
                        birth date of each such individual.
                            ``(ii) The employer identification number 
                        of each such employer.
            ``(2) Information comparisons.--For the purpose of locating 
        individuals in a paternity establishment case or a case 
        involving the establishment, modification, or enforcement of a 
        support order, the Secretary shall--
                    ``(A) compare information in the National Directory 
                of New Hires against information in the support order 
                abstracts in the Federal Case Registry of Child Support 
                Orders not less often than every 2 business days; and
                    ``(B) within 2 such days after such a comparison 
                reveals a match with respect to an individual, report 
                the information to the State agency responsible for the 
                case.
            ``(3) Information comparisons and disclosures of 
        information in all registries for title iv program purposes.--
        To the extent and with the frequency that the Secretary 
        determines to be effective in assisting States to carry out 
        their responsibilities under programs operated under this part 
        and programs funded under part A, the Secretary shall--
                    ``(A) compare the information in each component of 
                the Federal Parent Locator Service maintained under 
                this section against the information in each other such 
                component (other than the comparison required by 
                paragraph (2)), and report instances in which such a 
                comparison reveals a match with respect to an 
                individual to State agencies operating such programs; 
                and
                    ``(B) disclose information in such registries to 
                such State agencies.
            ``(4) Provision of new hire information to the social 
        security administration.--The National Directory of New Hires 
        shall provide the Commissioner of Social Security with all 
        information in the National Directory, which shall be used to 
        determine the accuracy of payments under the supplemental 
        security income program under title XVI and in connection with 
        benefits under title II.
            ``(5) Research.--The Secretary may provide access to 
        information reported by employers pursuant to section 453A(b) 
        for research purposes found by the Secretary to be likely to 
        contribute to achieving the purposes of part A or this part, 
        but without personal identifiers.
    ``(k) Fees.--
            ``(1) For ssa verification.--The Secretary shall reimburse 
        the Commissioner of Social Security, at a rate negotiated 
        between the Secretary and the Commissioner, for the costs 
        incurred by the Commissioner in performing the verification 
        services described in subsection (j).
            ``(2) For information from state directories of new 
        hires.--The Secretary shall reimburse costs incurred by State 
        directories of new hires in furnishing information as required 
        by subsection (j)(3), at rates which the Secretary determines 
        to be reasonable (which rates shall not include payment for the 
        costs of obtaining, compiling, or maintaining such 
        information).
            ``(3) For information furnished to state and federal 
        agencies.--A State or Federal agency that receives information 
        from the Secretary pursuant to this section shall reimburse the 
        Secretary for costs incurred by the Secretary in furnishing the 
        information, at rates which the Secretary determines to be 
        reasonable (which rates shall include payment for the costs of 
        obtaining, verifying, maintaining, and comparing the 
        information).
    ``(l) Restriction on Disclosure and Use.--Information in the 
Federal Parent Locator Service, and information resulting from 
comparisons using such information, shall not be used or disclosed 
except as expressly provided in this section, subject to section 6103 
of the Internal Revenue Code of 1986.
    ``(m) Information Integrity and Security.--The Secretary shall 
establish and implement safeguards with respect to the entities 
established under this section designed to--
            ``(1) ensure the accuracy and completeness of information 
        in the Federal Parent Locator Service; and
            ``(2) restrict access to confidential information in the 
        Federal Parent Locator Service to authorized persons, and 
        restrict use of such information to authorized purposes.''.
    (f) Conforming Amendments.--
            (1) To part d of title iv of the social security act.--
        Section 454(8)(B) (42 U.S.C. 654(8)(B)) is amended to read as 
        follows:
                    ``(B) the Federal Parent Locator Service 
                established under section 453;''.
            (2) To federal unemployment tax act.--Section 3304(a)(16) 
        of the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``Secretary of Health, Education, 
                and Welfare'' each place such term appears and 
                inserting ``Secretary of Health and Human Services'';
                    (B) in subparagraph (B), by striking ``such 
                information'' and all that follows and inserting 
                ``information furnished under subparagraph (A) or (B) 
                is used only for the purposes authorized under such 
                subparagraph;'';
                    (C) by striking ``and'' at the end of subparagraph 
                (A);
                    (D) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (E) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) wage and unemployment compensation 
                information contained in the records of such agency 
                shall be furnished to the Secretary of Health and Human 
                Services (in accordance with regulations promulgated by 
                such Secretary) as necessary for the purposes of the 
                National Directory of New Hires established under 
                section 453(i) of the Social Security Act, and''.
            (3) To state grant program under title iii of the social 
        security act.--Section 303(a) (42 U.S.C. 503(a)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (8);
                    (B) by striking ``and'' at the end of paragraph 
                (9);
                    (C) by striking the period at the end of paragraph 
                (10) and inserting ``; and''; and
                    (D) by adding after paragraph (10) the following:
            ``(11) The making of quarterly electronic reports, at such 
        dates, in such format, and containing such information, as 
        required by the Secretary of Health and Human Services under 
        section 453(i)(3), and compliance with such provisions as such 
        Secretary may find necessary to ensure the correctness and 
        verification of such reports.''.

SEC. 14717. COLLECTION AND USE OF SOCIAL SECURITY NUMBERS FOR USE IN 
              CHILD SUPPORT ENFORCEMENT.

    (a) State Law Requirement.--Section 466(a) (42 U.S.C. 666(a)), as 
amended by section 14715 of this Act, is amended by adding at the end 
the following:
            ``(13) Recording of social security numbers in certain 
        family matters.--Procedures requiring that the social security 
        number of--
                    ``(A) any applicant for a professional license, 
                commercial driver's license, occupational license, or 
                marriage license be recorded on the application;
                    ``(B) any individual who is subject to a divorce 
                decree, support order, or paternity determination or 
                acknowledgment be placed in the records relating to the 
                matter; and
                    ``(C) any individual who has died be placed in the 
                records relating to the death and be recorded on the 
                death certificate.''.
    (b) Conforming Amendments.--Section 205(c)(2)(C) (42 U.S.C. 
405(c)(2)(C)), as amended by section 321(a)(9) of the Social Security 
Independence and Program Improvements Act of 1994, is amended--
            (1) in clause (i), by striking ``may require'' and 
        inserting ``shall require'';
            (2) in clause (ii), by inserting after the 1st sentence the 
        following: ``In the administration of any law involving the 
        issuance of a marriage certificate or license, each State shall 
        require each party named in the certificate or license to 
        furnish to the State (or political subdivision thereof) or any 
        State agency having administrative responsibility for the law 
        involved, the social security number of the party.'';
            (3) in clause (vi), by striking ``may'' and inserting 
        ``shall''; and
            (4) by adding at the end the following:
                            ``(x) An agency of a State (or a political 
                        subdivision thereof) charged with the 
                        administration of any law concerning the 
                        issuance or renewal of a license, certificate, 
                        permit, or other authorization to engage in a 
                        profession, an occupation, or a commercial 
                        activity shall require all applicants for 
                        issuance or renewal of the license, 
                        certificate, permit, or other authorization to 
                        provide the applicant's social security number
                         to the agency for the purpose of administering 
such laws, and for the purpose of responding to requests for 
information from an agency operating pursuant to part D of title IV.
                            ``(xi) All divorce decrees, support orders, 
                        and paternity determinations issued, and all 
                        paternity acknowledgments made, in each State 
                        shall include the social security number of 
                        each party to the decree, order, determination, 
                        or acknowledgment in the records relating to 
                        the matter.''.

          CHAPTER 3--STREAMLINING AND UNIFORMITY OF PROCEDURES

SEC. 14721. ADOPTION OF UNIFORM STATE LAWS.

    Section 466 (42 U.S.C. 666) is amended by adding at the end the 
following:
    ``(f) Uniform Interstate Family Support Act.--
            ``(1) Enactment and use.--In order to satisfy section 
        454(20)(A) on or after January 1, 1997, each State must have in 
        effect the Uniform Interstate Family Support Act, as approved 
        by the National Conference of Commissioners on Uniform State 
        Laws in August 1992 (with the modifications and additions 
        specified in this subsection), and the procedures required to 
        implement such Act.
            ``(2) Expanded application.--The State law enacted pursuant 
        to paragraph (1) shall be applied to any case involving an 
        order which is established or modified in a State and which is 
        sought to be modified or enforced in another State.
            ``(3) Jurisdiction to modify orders.--The State law enacted 
        pursuant to paragraph (1) of this subsection shall contain the 
        following provision in lieu of section 611(a)(1) of the Uniform 
        Interstate Family Support Act:
            ```(1) the following requirements are met:
                    ```(i) the child, the individual obligee, and the 
                obligor--
                            ```(I) do not reside in the issuing State; 
                        and
                            ```(II) either reside in this State or are 
                        subject to the jurisdiction of this State 
                        pursuant to section 201; and
                    ```(ii) (in any case where another State is 
                exercising or seeks to exercise jurisdiction to modify 
                the order) the conditions of section 204 are met to the 
                same extent as required for proceedings to establish 
                orders; or'.
            ``(4) Service of process.--The State law enacted pursuant 
        to paragraph (1) shall provide that, in any proceeding subject 
        to the law, process may be served (and proved) upon persons in 
        the State by any means acceptable in any State which is the 
        initiating or responding State in the proceeding.''.

SEC. 14722. IMPROVEMENTS TO FULL FAITH AND CREDIT FOR CHILD SUPPORT 
              ORDERS.

    Section 1738B of title 28, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``subsection (e)'' 
        and inserting ``subsections (e), (f), and (i)'';
            (2) in subsection (b), by inserting after the 2nd 
        undesignated paragraph the following:
            ```child's home State' means the State in which a child 
        lived with a parent or a person acting as parent for at least 
        six consecutive months immediately preceding the time of filing 
        of a petition or comparable pleading for support and, if a 
        child is less than six months old, the State in which the child 
        lived from birth with any of them. A period of temporary 
        absence of any of them is counted as part of the six-month 
        period.'';
            (3) in subsection (c), by inserting ``by a court of a 
        State'' before ``is made'';
            (4) in subsection (c)(1), by inserting ``and subsections 
        (e), (f), and (g)'' after ``located'';
            (5) in subsection (d)--
                    (A) by inserting ``individual'' before 
                ``contestant''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (6) in subsection (e), by striking ``make a modification of 
        a child support order with respect to a child that is made'' 
        and inserting ``modify a child support order issued'';
            (7) in subsection (e)(1), by inserting ``pursuant to 
        subsection (i)'' before the semicolon;
            (8) in subsection (e)(2)--
                    (A) by inserting ``individual'' before 
                ``contestant'' each place such term appears; and
                    (B) by striking ``to that court's making the 
                modification and assuming'' and inserting ``with the 
                State of continuing, exclusive jurisdiction for a court 
                of another State to modify the order and assume'';
            (9) by redesignating subsections (f) and (g) as subsections 
        (g) and (h), respectively;
            (10) by inserting after subsection (e) the following:
    ``(f) Recognition of Child Support Orders.--If one or more child 
support orders have been issued in this or another State with regard to 
an obligor and a child, a court shall apply the following rules in 
determining which order to recognize for purposes of continuing, 
exclusive jurisdiction and enforcement:
            ``(1) If only one court has issued a child support order, 
        the order of that court must be recognized.
            ``(2) If two or more courts have issued child support 
        orders for the same obligor and child, and only one of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, the order of that court must be recognized.
            ``(3) If two or more courts have issued child support 
        orders for the same obligor and child, and only one of the 
        courts would have continuing, exclusive jurisdiction under this 
        section, an order issued by a court in the current home State 
        of the child must be recognized, but if an order has not been 
        issued in the current home State of the child, the order most 
        recently issued must be recognized.
            ``(4) If two or more courts have issued child support 
        orders for the same obligor and child, and none of the courts 
        would have continuing, exclusive
         jurisdiction under this section, a court may issue a child 
support order, which must be recognized.
            ``(5) The court that has issued an order recognized under 
        this subsection is the court having continuing, exclusive 
        jurisdiction.'';
            (11) in subsection (g) (as so redesignated)--
                    (A) by striking ``Prior'' and inserting 
                ``Modified''; and
                    (B) by striking ``subsection (e)'' and inserting 
                ``subsections (e) and (f)'';
            (12) in subsection (h) (as so redesignated)--
                    (A) in paragraph (2), by inserting ``including the 
                duration of current payments and other obligations of 
                support'' before the comma; and
                    (B) in paragraph (3), by inserting ``arrears 
                under'' after ``enforce''; and
            (13) by adding at the end the following:
    ``(i) Registration for Modification.--If there is no individual 
contestant or child residing in the issuing State, the party or support 
enforcement agency seeking to modify, or to modify and enforce, a child 
support order issued in another State shall register that order in a 
State with jurisdiction over the nonmovant for the purpose of 
modification.''.

SEC. 14723. ADMINISTRATIVE ENFORCEMENT IN INTERSTATE CASES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 14715 and 
14717(a) of this Act, is amended by adding at the end the following:
            ``(14) Administrative enforcement in interstate cases.--
        Procedures under which--
                    ``(A)(i) the State shall respond within 5 business 
                days to a request made by another State to enforce a 
                support order; and
                    ``(ii) the term `business day' means a day on which 
                State offices are open for regular business;
                    ``(B) the State may, by electronic or other means, 
                transmit to another State a request for assistance in a 
                case involving the enforcement of a support order, 
                which request--
                            ``(i) shall include such information as 
                        will enable the State to which the request is 
                        transmitted to compare the information about 
                        the case to the information in the data bases 
                        of the State; and
                            ``(ii) shall constitute a certification by 
                        the requesting State--
                                    ``(I) of the amount of support 
                                under the order the payment of which is 
                                in arrears; and
                                    ``(II) that the requesting State 
                                has complied with all procedural due 
                                process requirements applicable to the 
                                case;
                    ``(C) if the State provides assistance to another 
                State pursuant to this paragraph with respect to a 
                case, neither State shall consider the case to be 
                transferred to the caseload of such other State; and
                    ``(D) the State shall maintain records of--
                            ``(i) the number of such requests for 
                        assistance received by the State;
                            ``(ii) the number of cases for which the 
                        State collected support in response to such a 
                        request; and
                            ``(iii) the amount of such collected 
                        support.''.

SEC. 14724. USE OF FORMS IN INTERSTATE ENFORCEMENT.

    (a) Promulgation.--Section 452(a) (42 U.S.C. 652(a)) is amended--
            (1) by striking ``and'' at the end of parargraph (9);
            (2) by striking the period at the end of paragraph (10) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(11) not later than June 30, 1996, promulgate forms to be 
        used by States in interstate cases for--
                    ``(A) collection of child support through income 
                withholding;
                    ``(B) imposition of liens; and
                    ``(C) administrative subpoenas.''.
    (b) Use by States.--Section 454(9) (42 U.S.C. 654(9)) is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) by inserting ``and'' at the end of subparagraph (D); 
        and
            (3) by adding at the end the following:
                    ``(E) no later than October 1, 1996, in using the 
                forms promulgated pursuant to section 452(a)(11) for 
                income withholding, imposition of liens, and issuance 
                of administrative subpoenas in interstate child support 
                cases;''.

SEC. 14725. STATE LAWS PROVIDING EXPEDITED PROCEDURES.

    (a) State Law Requirements.--Section 466 (42 U.S.C. 666), as 
amended by section 14714 of this Act, is amended--
            (1) in subsection (a)(2), by strking the 1st sentence and 
        inserting the following: ``Expedited administrative and 
        judicial procedures (including the procedures specified in 
        subsection (c)) for establishing paternity and for 
        establishing, modifying, and enforcing support obligations.''; 
        and
            (2) by inserting after subsection (b) the following:
    ``(c) Expedited Procedures.--The procedures specified in this 
subsection are the following:
            ``(1) Administrative action by state agency.--Procedures 
        which give the State agency the authority to take the following 
        actions relating to establishment or enforcement of support 
        orders, without the necessity of obtaining an order from any 
        other judicial or administrative tribunal (but subject to due 
        process safeguards, including (as appropriate) requirements for 
        notice, opportunity to contest the action, and opportunity for 
        an appeal on the record to an independent administrative or 
        judicial tribunal), and to recognize and enforce the authority 
        of
         State agencies of other States) to take the following actions:
                    ``(A) Genetic testing.--To order genetic testing 
                for the purpose of paternity establishment as provided 
                in section 466(a)(5).
                    ``(B) Default orders.--To enter a default order, 
                upon a showing of service of process and any additional 
                showing required by State law--
                            ``(i) establishing paternity, in the case 
                        of a putative father who refuses to submit to 
                        genetic testing; and
                            ``(ii) establishing or modifying a support 
                        obligation, in the case of a parent (or other 
                        obligor or obligee) who fails to respond to 
                        notice to appear at a proceeding for such 
                        purpose.
                    ``(C) Subpoenas.--To subpoena any financial or 
                other information needed to establish, modify, or 
                enforce a support order, and to impose penalties for 
                failure to respond to such a subpoena.
                    ``(D) Access to personal and financial 
                information.--To obtain access, subject to safeguards 
                on privacy and information security, to the records of 
                all other State and local government agencies 
                (including law enforcement and corrections records), 
                including automated access to records maintained in 
                automated data bases.
                    ``(E) Change in payee.--In cases where support is 
                subject to an assignment in order to comply with a 
                requirement imposed pursuant to part A or section 1912, 
                or to a requirement to pay through the State 
                disbursement unit established pursuant to section 454B, 
                upon providing notice to obligor and obligee, to direct 
                the obligor or other payor to change the payee to the 
                appropriate government entity.
                    ``(F) Income withholding.--To order income 
                withholding in accordance with subsections (a)(1) and 
                (b) of section 466.
                    ``(G) Securing assets.--In cases in which there is 
                a support arrearage, to secure assets to satisfy the 
                arrearage by--
                            ``(i) intercepting or seizing periodic or 
                        lump sum payments from--
                                    ``(I) a State or local agency 
                                (including unemployment compensation, 
                                workers' compensation, and other 
                                benefits); and
                                    ``(II) judgments, settlements, and 
                                lotteries;
                            ``(ii) attaching and seizing assets of the 
                        obligor held in financial institutions; and
                            ``(iii) attaching public and private 
                        retirement funds.
                    ``(H) Increase monthly payments.--For the purpose 
                of securing overdue support, to increase the amount of 
                monthly support payments to include amounts for 
                arrearages (subject to such conditions or limitations 
                as the State may provide).
            ``(2) Substantive and procedural rules.--The expedited 
        procedures required under subsection (a)(2) shall include the 
        following rules and authority, applicable with respect to all 
        proceedings to establish paternity or to establish, modify, or 
        enforce support orders:
                    ``(A) Locator information; presumptions concerning 
                notice.--Procedures under which--
                            ``(i) each party to any paternity or child 
                        support proceeding is required (subject to 
                        privacy safeguards) to file with the tribunal 
                        and the State case registry upon entry of an 
                        order, and to update as appropriate, 
                        information on location and identity of the 
                        party (including social security number, 
                        residential and mailing addresses, telephone 
                        number, driver's license number, and name, 
                        address, and name and telephone number of 
                        employer); and
                            ``(ii) in any subsequent child support 
                        enforcement action between the parties, upon 
                        sufficient showing that diligent effort has 
                        been made to ascertain the location of such a 
                        party, the tribunal may deem State due process 
                        requirements for notice and service of process 
                        to be met with respect to the party, upon 
                        delivery of written notice to the most recent 
                        residential or employer address filed with the 
                        tribunal pursuant to clause (i).
                    ``(B) Statewide jurisdiction.--Procedures under 
                which--
                            ``(i) the State agency and any 
                        administrative or judicial tribunal with 
                        authority to hear child support and paternity 
                        cases exerts statewide jurisdiction over the 
                        parties; and
                            ``(ii) in a State in which orders are 
                        issued by courts or administrative tribunals, a 
                        case may be transferred between administrative 
                        areas in the State without need for any 
                        additional filing by the petitioner, or service 
                        of process upon the respondent, to retain 
                        jurisdiction over the parties.''.
    (b) Automation of State Agency Functions.--Section 454A, as added 
by section 745(a)(2) of this Act and as amended by sections 14711 and 
14712(c) of this Act, is amended by adding at the end the following:
    ``(h) Expedited Administrative Procedures.--The automated system 
required by this section shall be used, to the maximum extent feasible, 
to implement the expedited administrative procedures required by 
section 466(c).''.
                   CHAPTER 4--PATERNITY ESTABLISHMENT

SEC. 14731. STATE LAWS CONCERNING PATERNITY ESTABLISHMENT.

    (a) State Laws Required.--Section 466(a)(5) (42 U.S.C. 666(a)(5)) 
is amended to read as follows:
            ``(5) Procedures concerning paternity establishment.--
                    ``(A) Establishment process available from birth 
                until age 18.--
                            ``(i) Procedures which permit the 
                        establishment of the paternity of a child at 
                        any time before the child attains 18 years of 
                        age.
                            ``(ii) As of August 16, 1984, clause (i) 
                        shall also apply to a child for whom paternity 
                        has not been established or for whom a 
                        paternity action was brought but dismissed 
                        because a statute of limitations of less than 
                        18 years was then in effect in the State.
                    ``(B) Procedures concerning genetic testing.--
                            ``(i) Genetic testing required in certain 
                        contested cases.--Procedures under which the 
                        State is required, in a contested paternity 
                        case, to require the child and all other 
                        parties (other than individuals found under 
                        section 454(28) to have good cause for refusing 
                        to cooperate) to submit to genetic tests upon 
                        the request of any such party if the request is 
                        supported by a sworn statement by the party--
                                    ``(I) alleging paternity, and 
                                setting forth facts establishing a 
                                reasonable possibility of the requisite 
                                sexual contact between the parties; or
                                    ``(II) denying paternity, and 
                                setting forth facts establishing a 
                                reasonable possibility of the 
                                nonexistence of sexual contact between 
                                the parties.
                            ``(ii) Other requirements.--Procedures 
                        which require the State agency, in any case in 
                        which the agency orders genetic testing--
                                    ``(I) to pay costs of such tests, 
                                subject to recoupment (where the State 
                                so elects) from the alleged father if 
                                paternity is established; and
                                    ``(II) to obtain additional testing 
                                in any case where an original test 
                                result is contested, upon request and 
                                advance payment by the contestant.
                    ``(C) Voluntary paternity acknowledgment.--
                            ``(i) Simple civil process.--Procedures for 
                        a simple civil process for voluntarily 
                        acknowledging paternity under which the State 
                        must provide that, before a mother and a 
                        putative father can sign an acknowledgment of 
                        paternity, the mother and the putative father 
                        must be given notice, orally, in writing, and 
                        in a language that each can understand, of the 
                        alternatives to, the legal consequences of, and 
                        the rights (including, if 1 parent is a minor, 
                        any rights afforded due to minority status) and 
                        responsibilities that arise from, signing the 
                        acknowledgment.
                            ``(ii) Hospital-based program.--Such 
                        procedures must include a hospital-based 
                        program for the voluntary acknowledgment of 
                        paternity focusing on the period immediately 
                        before or after the birth of a child.
                            ``(iii) Paternity establishment services.--
                                    ``(I) State-offered services.--Such 
                                procedures must require the State 
                                agency responsible for maintaining 
                                birth records to offer voluntary 
                                paternity establishment services.
                                    ``(II) Regulations.--
                                            ``(aa) Services offered by 
                                        hospitals and birth record 
                                        agencies.--The Secretary shall 
                                        prescribe regulations governing 
                                        voluntary paternity 
                                        establishment services offered 
                                        by hospitals and birth record 
                                        agencies.
                                            ``(bb) Services offered by 
                                        other entities.--The Secretary 
                                        shall prescribe regulations 
                                        specifying the types of other 
                                        entities that may offer 
                                        voluntary paternity 
                                        establishment services, and 
                                        governing the provision of such 
                                        services, which shall include a 
                                        requirement that such an entity 
                                        must use the same notice 
                                        provisions used by, use the 
                                        same materials used by, provide 
                                        the personnel providing such 
                                        services with the same training 
                                        provided by, and evaluate the 
                                        provision of such services in 
                                        the same manner as the 
                                        provision of such services is 
                                        evaluated by, voluntary 
                                        paternity establishment 
                                        programs of hospitals and birth 
                                        record agencies.
                            ``(iv) Use of federal paternity 
                        acknowledgment affidavit.--Such procedures must 
                        require the State and those required to 
                        establish paternity to use only the affidavit 
                        developed under section 452(a)(7) for the 
                        voluntary acknowledgment of paternity, and to 
                        give full faith and credit to such an affidavit 
                        signed in any other State.
                    ``(D) Status of signed paternity acknowledgment.--
                            ``(i) Legal finding of paternity.--
                        Procedures under which a signed acknowledgment 
                        of paternity is considered a legal finding of 
                        paternity, subject to the right of any 
                        signatory to rescind the acknowledgment within 
                        60 days.
                            ``(ii) Contest.--Procedures under which, 
                        after the 60-day period referred to in clause 
                        (i), a signed acknowledgment of paternity may 
                        be challenged in court only on the basis of 
                        fraud, duress, or material mistake of fact, 
                        with the burden of proof upon the challenger, 
                        and under which the legal responsibilities 
                        (including child support obligations) of any 
                        signatory arising from the acknowledgment may 
                        not be suspended during the challenge, except 
                        for good cause shown.
                            ``(iii) Rescission.--Procedures under 
                        which, after the 60-day period referred to in 
                        clause (i), a minor who has signed an 
                        acknowledgment of paternity other than in the 
                        presence of a parent or court-appointed 
                        guardian ad litem may rescind the 
                        acknowledgment in a judicial or administrative 
                        proceeding, until the earlier of--
                                    ``(I) attaining the age of 
                                majority; or
                                    ``(II) the date of the first 
                                judicial or administrative proceeding 
                                brought (after the signing) to 
                                establish a child support obligation, 
                                visitation rights, or custody rights 
                                with respect to the child whose 
                                paternity is the subject of the 
                                acknowledgment, and at which the minor 
                                is represented by a parent or guardian 
                                ad litem, or an attorney.
                    ``(E) Bar on acknowledgment ratification 
                proceedings.--Procedures under which judicial or 
                administrative proceedings are not required or 
                permitted to ratify an unchallenged acknowledgment of 
                paternity.
                    ``(F) Admissibility of genetic testing results.--
                Procedures--
                            ``(i) requiring the admission into 
                        evidence, for purposes of establishing 
                        paternity, of the results of any genetic test 
                        that is--
                                    ``(I) of a type generally 
                                acknowledged as reliable by 
                                accreditation bodies designated by the 
                                Secretary; and
                                    ``(II) performed by a laboratory 
                                approved by such an accreditation body;
                            ``(ii) requiring an objection to genetic 
                        testing results to be made in writing not later 
                        than a specified number of days before any 
                        hearing at which the results may be introduced 
                        into evidence (or, at State option, not later 
                        than a specified number of days after receipt 
                        of the results); and
                            ``(iii) making the test results admissible 
                        as evidence of paternity without the need for 
                        foundation testimony or other proof of 
                        authenticity or accuracy, unless objection is 
                        made.
                    ``(G) Presumption of paternity in certain cases.--
                Procedures which create a rebuttable or, at the option 
                of the State, conclusive presumption of paternity upon 
                genetic testing results indicating a threshold 
                probability that the alleged father is the father of 
                the child.
                    ``(H) Default orders.--Procedures requiring a 
                default order to be entered in a paternity case upon a 
                showing of service of process on the defendant and any 
                additional showing required by State law.
                    ``(I) No right to jury trial.--Procedures providing 
                that the parties to an action to establish paternity 
                are not entitled to a trial by jury.
                    ``(J) Temporary support order based on probable 
                paternity in contested cases.--Procedures which require 
                that a temporary order be issued, upon motion by a 
                party, requiring the provision of child support pending 
                an administrative or judicial determination of 
                parentage, where there is clear and convincing evidence 
                of paternity (on the basis of genetic tests or other 
                evidence).
                    ``(K) Proof of certain support and paternity 
                establishment costs.--Procedures under which bills for 
                pregnancy, childbirth, and genetic testing are 
                admissible as evidence without requiring third-party 
                foundation testimony, and shall constitute prima facie 
                evidence of amounts incurred for such services or for 
                testing on behalf of the child.
                    ``(L) Standing of putative fathers.--Procedures 
                ensuring that the putative father has a reasonable 
                opportunity to initiate a paternity action.
                    ``(M) Filing of acknowledgments and adjudications 
                in state registry of birth records.--Procedures under 
                which voluntary acknowledgments and adjudications of 
                paternity by judicial or administrative processes are 
                filed with the State registry of birth records for 
                comparison with information in the State case 
                registry.''.
    (b) National Paternity Acknowledgment Affidavit.--Section 452(a)(7) 
(42 U.S.C. 652(a)(7)) is amended by inserting ``, and develop an 
affidavit to be used for the voluntary acknowledgment of paternity 
which shall include the social security number of each parent'' before 
the semicolon.
    (c) Technical Amendment.--Section 468 (42 U.S.C. 668) is amended by 
striking ``a simple civil process for voluntarily acknowledging 
paternity and''.
SEC. 14732. OUTREACH FOR VOLUNTARY PATERNITY ESTABLISHMENT.

    Section 454(23) (42 U.S.C. 654(23)) is amended by inserting ``and 
will publicize the availability and encourage the use of procedures for 
voluntary establishment of paternity and child support by means the 
State deems appropriate'' before the semicolon.

SEC. 14733. COOPERATION BY APPLICANTS FOR AND RECIPIENTS OF TEMPORARY 
              FAMILY ASSISTANCE.

    Section 454 (42 U.S.C. 654), as amended by sections 14703(a), 
14712(a), and 14713(a) of this Act, is amended--
            (1) by striking ``and'' at the end of paragraph (26);
            (2) by striking the period at the end of paragraph (27) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (27) the following:
            ``(28) provide that the State agency responsible for 
        administering the State plan--
                    ``(A) shall require each individual who has applied 
                for or is receiving assistance under the State program 
                funded under part A to cooperate with the State in 
                establishing the paternity of, and in establishing, 
                modifying, or enforcing a support order for, any child 
                of the individual by providing the State agency with 
                the name of, and such other information as the State 
                agency may require with respect to, the father of the 
                child, subject to such good cause and other exceptions 
                as the State may establish; and
                    ``(B) may require the individual and the child to 
                submit to genetic tests.''.

             CHAPTER 5--PROGRAM ADMINISTRATION AND FUNDING

SEC. 14741. FEDERAL MATCHING PAYMENTS.

    (a) Increased Base Matching Rate.--Section 455(a)(2) (42 U.S.C. 
655(a)(2)) is amended to read as follows:
    ``(2) The percent specified in this paragraph for any quarter is 66 
percent.''.
    (b) Maintenance of Effort.--Section 455 (42 U.S.C. 655) is 
amended--
            (1) in subsection (a)(1), in the matter preceding 
        subparagraph (A), by striking ``From'' and inserting ``Subject 
        to subsection (c), from''; and
            (2) by inserting after subsection (b) the following:
    ``(c) Maintenance of Effort.--Notwithstanding subsection (a), the 
total expenditures under the State plan approved under this part for 
fiscal year 1997 and each succeeding fiscal year, reduced by the 
percentage specified in paragraph (2) for the fiscal year shall not be 
less than such total expenditures for fiscal year 1996, reduced by 66 
percent.''.

SEC. 14742. PERFORMANCE-BASED INCENTIVES AND PENALTIES.

    (a) Incentive Adjustments to Federal Matching Rate.--Section 458 
(42 U.S.C. 658) is amended to read as follows:

``SEC. 458. INCENTIVE ADJUSTMENTS TO MATCHING RATE.

    ``(a) Incentive Adjustments.--
            ``(1) In general.--Beginning with fiscal year 1999, the 
        Secretary shall increase the percent specified in section 
        455(a)(2) that applies to payments to a State under section 
        455(a)(1)(A) for each quarter in a fiscal year by a factor 
        reflecting the sum of the applicable incentive adjustments (if 
        any) determined in accordance with regulations under this 
        section with respect to the paternity establishment percentage 
        of the State for the immediately preceding fiscal year and with 
        respect to overall performance of the State in child support 
        enforcement during such preceding fiscal year.
            ``(2) Standards.--
                    ``(A) In general.--The Secretary shall specify in 
                regulations--
                            ``(i) the levels of accomplishment, and 
                        rates of improvement as alternatives to such 
                        levels, which a State must attain to qualify 
                        for an incentive adjustment under this section; 
                        and
                            ``(ii) the amounts of incentive adjustment 
                        that shall be awarded to a State that achieves 
                        specified accomplishment or improvement levels, 
                        which amounts shall be graduated, ranging up 
                        to--
                                    ``(I) 12 percentage points, in 
                                connection with paternity 
                                establishment; and
                                    ``(II) 12 percentage points, in 
                                connection with overall performance in 
                                child support enforcement.
                    ``(B) Limitation.--In setting performance standards 
                pursuant to subparagraph (A)(i) and adjustment amounts 
                pursuant to subparagraph (A)(ii), the Secretary shall 
                ensure that the aggregate number of percentage point 
                increases as incentive adjustments to all States do not 
                exceed such aggregate increases as assumed by the 
                Secretary in estimates of the cost of this section as 
                of June 1994, unless the aggregate performance of all 
                States exceeds the projected aggregate performance of 
                all States in such cost estimates.
            ``(3) Determination of incentive adjustment.--The Secretary 
        shall determine the amount (if any) of the incentive adjustment 
        due each State on the basis of the data submitted by the State 
        pursuant to section 454(15)(B) concerning the levels of 
        accomplishment (and rates of improvement) with respect to 
        performance indicators specified by the Secretary pursuant to 
        this section.
            ``(4) Recycling of incentive adjustment.--A State to which 
        funds are paid by the Federal Government as a result of an 
        incentive adjustment under this section shall expend the funds 
        in the State program under this part within 2 years after the 
        date of the payment.
    ``(b) Definitions.--As used in this section:
            ``(1) Paternity establishment percentage.--The term 
        `paternity establishment percentage' means, with respect to a 
        State and a fiscal year--
                    ``(A) the total number of children in the State who 
                were born out of wedlock, who have not attained 1 year 
                of age and for whom paternity is established or 
                acknowledged during the fiscal year; divided by
                    ``(B) the total number of children born out of 
                wedlock in the State during the fiscal year.
            ``(2) Overall performance in child support enforcement.--
        The term `overall performance in child support enforcement' 
        means a measure or measures of the effectiveness of the State 
        agency in a fiscal year which takes into account factors 
        including--
                    ``(A) the percentage of cases requiring a support 
                order in which such an order was established;
                    ``(B) the percentage of cases in which child 
                support is being paid;
                    ``(C) the ratio of child support collected to child 
                support due; and
                    ``(D) the cost-effectiveness of the State program, 
                as determined in accordance with standards established 
                by the Secretary in regulations (after consultation 
                with the States).''.
    (b) Conforming Amendments.--Section 454(22) (42 U.S.C. 654(22)) is 
amended--
            (1) by striking ``incentive payments'' the 1st place such 
        term appears and inserting ``incentive adjustments''; and
            (2) by striking ``any such incentive payments made to the 
        State for such period'' and inserting ``any increases in 
        Federal payments to the State resulting from such incentive 
        adjustments''.
    (c) Calculation of IV-D Paternity Establishment Percentage.--
            (1) Section 452(g)(1) (42 U.S.C. 652(g)(1)) is amended--
                    (A) in the matter preceding subparagraph (A) by 
                inserting ``its overall performance in child support 
                enforcement is satisfactory (as defined in section 
                458(b) and regulations of the Secretary), and'' after 
                ``1994,''; and
                    (B) in each of subparagraphs (A) and (B), by 
                striking ``75'' and inserting ``90''.
            (2) Section 452(g)(2)(A) (42 U.S.C. 652(g)(2)(A)) is 
        amended in the matter preceding clause (i)--
                    (A) by striking ``paternity establishment 
                percentage'' and inserting ``IV-D paternity 
                establishment percentage''; and
                    (B) by striking ``(or all States, as the case may 
                be)''.
            (3) Section 452(g)(3) (42 U.S.C. 652(g)(3)) is amended--
                    (A) by striking subparagraph (A) and redesignating 
                subparagraphs (B) and (C) as subparagraphs (A) and (B), 
                respectively;
                    (B) in subparagraph (A) (as so redesignated), by 
                striking ``the percentage of children born out-of-
                wedlock in a State'' and inserting ``the percentage of 
                children in a State who are born out of wedlock or for 
                whom support has not been established''; and
                    (C) in subparagraph (B) (as so redesignated)--
                            (i) by inserting ``and overall performance 
                        in child support enforcement'' after 
                        ``paternity establishment percentages''; and
                            (ii) by inserting ``and securing support'' 
                        before the period.
    (d) Effective Dates.--
            (1) Incentive adjustments.--(A) The amendments made by 
        subsections (a) and (b) shall become effective on October 1, 
        1997, except to the extent provided in subparagraph (B).
            (B) Section 458 of the Social Security Act, as in effect 
        prior to the enactment of this section, shall be effective for 
        purposes of incentive payments to States for fiscal years 
        before fiscal year 1999.
            (2) Penalty reductions.--The amendments made by subsection 
        (c) shall become effective with respect to calendar quarters 
        beginning on and after the date of the enactment of this Act.

SEC. 14743. FEDERAL AND STATE REVIEWS AND AUDITS.

    (a) State Agency Activities.--Section 454 (42 U.S.C. 654) is 
amended--
            (1) in paragraph (14), by striking ``(14)'' and inserting 
        ``(14)(A)'';
            (2) by redesignating paragraph (15) as subparagraph (B) of 
        paragraph (14); and
            (3) by inserting after paragraph (14) the following:
            ``(15) provide for--
                    ``(A) a process for annual reviews of and reports 
                to the Secretary on the State program operated under 
                the State plan approved under this part, which shall 
                include such information as may be necessary to measure 
                State compliance with Federal requirements for 
                expedited procedures and timely case processing, using 
                such standards and procedures as are required by the 
                Secretary, under which the State agency will determine 
                the extent to which the program is operated in 
                compliance with this part; and
                    ``(B) a process of extracting from the automated 
                data processing system required by paragraph (16) and 
                transmitting to the Secretary data and calculations 
                concerning the levels of accomplishment (and rates of 
                improvement) with respect to applicable performance 
                indicators (including IV-D paternity establishment 
                percentages and overall performance in child support 
                enforcement) to the extent necessary for purposes of 
                sections 452(g) and 458.''.
    (b) Federal Activities.--Section 452(a)(4) (42 U.S.C. 652(a)(4)) is 
amended to read as follows:
            ``(4)(A) review data and calculations transmitted by State 
        agencies pursuant to section 454(15)(B) on State program 
        accomplishments with respect to performance indicators for 
        purposes of subsection (g) of this section and section 458;
            ``(B) review annual reports submitted pursuant to section 
        454(15)(A) and, as appropriate, provide to the State comments, 
        recommendations for additional or alternative corrective 
        actions, and technical assistance; and
            ``(C) conduct audits, in accordance with the government 
        auditing standards of the Comptroller General of the United 
        States--
                    ``(i) at least once every 3 years (or more 
                frequently, in the case of a State which fails to meet 
                the requirements of this part, concerning performance 
                standards and reliability of program data) to assess 
                the completeness, reliability, and security of the 
                data, and the accuracy of the reporting systems, used 
                in calculating performance indicators under subsection 
                (g) of this section and section 458;
                    ``(ii) of the adequacy of financial management of 
                the State program operated under the State plan 
                approved under this part, including assessments of--
                            ``(I) whether Federal and other funds made 
                        available to carry out the State program are 
                        being appropriately expended, and are properly 
                        and fully accounted for; and
                            ``(II) whether collections and 
                        disbursements of support payments are carried 
                        out correctly and are fully accounted for; and
                    ``(iii) for such other purposes as the Secretary 
                may find necessary;''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to calendar quarters beginning 12 months or more 
after the date of the enactment of this section.

SEC. 14744. REQUIRED REPORTING PROCEDURES.

    (a) Establishment.--Section 452(a)(5) (42 U.S.C. 652(a)(5)) is 
amended by inserting ``, and establish procedures to be followed by 
States for collecting and reporting information required to be provided 
under this part, and establish uniform definitions (including those 
necessary to enable the measurement of State compliance with the 
requirements of this part relating to expedited processes and timely 
case processing) to be applied in following such procedures'' before 
the semicolon.
    (b) State Plan Requirement.--Section 454 (42 U.S.C. 654), as 
amended by sections 14703(a), 14712(a), 14713(a), and 14733 of this 
Act, is amended--
            (1) by striking ``and'' at the end of paragraph (27);
            (2) by striking the period at the end of paragraph (28) and 
        inserting ``; and''; and
            (3) by adding after paragraph (28) the following:
            ``(29) provide that the State shall use the definitions 
        established under section 452(a)(5) in collecting and reporting 
        information as required under this part.''.

SEC. 14745. AUTOMATED DATA PROCESSING REQUIREMENTS.

    (a) Revised Requirements.--
            (1) Section 454(16) (42 U.S.C. 654(16)) is amended--
                    (A) by striking ``, at the option of the State,'';
                    (B) by inserting ``and operation by the State 
                agency'' after ``for the establishment'';
                    (C) by inserting ``meeting the requirements of 
                section 454A'' after ``information retrieval system'';
                    (D) by striking ``in the State and localities 
                thereof, so as (A)'' and inserting ``so as'';
                    (E) by striking ``(i)''; and
                    (F) by striking ``(including'' and all that follows 
                and inserting a semicolon.
            (2) Part D of title IV (42 U.S.C. 651-669) is amended by 
        inserting after section 454 the following:

``SEC. 454A. AUTOMATED DATA PROCESSING.

    ``(a) In General.--In order for a State to meet the requirements of 
this section, the State agency administering the State program under 
this part shall have in operation a single statewide automated data 
processing and information retrieval system which has the capability to 
perform the tasks specified in this section with the frequency and in 
the manner required by or under this part.
    ``(b) Program Management.--The automated system required by this 
section shall perform such functions as the Secretary may specify 
relating to management of the State program under this part, 
including--
            ``(1) controlling and accounting for use of Federal, State, 
        and local funds in carrying out the program; and
            ``(2) maintaining the data necessary to meet Federal 
        reporting requirements under this part on a timely basis.
    ``(c) Calculation of Performance Indicators.--In order to enable 
the Secretary to determine the incentive and penalty adjustments 
required by sections 452(g) and 458, the State agency shall--
            ``(1) use the automated system--
                    ``(A) to maintain the requisite data on State 
                performance with respect to paternity establishment and 
                child support enforcement in the State; and
                    ``(B) to calculate the IV-D paternity establishment 
                percentage and overall performance in child support 
                enforcement for the State for each fiscal year; and
            ``(2) have in place systems controls to ensure the 
        completeness, and reliability of, and ready access to, the data 
        described in paragraph (1)(A), and the accuracy of the 
        calculations described in paragraph (1)(B).
    ``(d) Information Integrity and Security.--The State agency shall 
have in effect safeguards on the integrity, accuracy, and completeness 
of, access to, and use of data in the automated system required by this 
section, which shall include the following (in addition to such other 
safeguards as the Secretary may specify in regulations):
            ``(1) Policies restricting access.--Written policies 
        concerning access to data by State agency
         personnel, and sharing of data with other persons, which--
                    ``(A) permit access to and use of data only to the 
                extent necessary to carry out the State program under 
                this part; and
                    ``(B) specify the data which may be used for 
                particular program purposes, and the personnel 
                permitted access to such data.
            ``(2) Systems controls.--Systems controls (such as 
        passwords or blocking of fields) to ensure strict adherence to 
        the policies described in paragraph (1).
            ``(3) Monitoring of access.--Routine monitoring of access 
        to and use of the automated system, through methods such as 
        audit trails and feedback mechanisms, to guard against and 
        promptly identify unauthorized access or use.
            ``(4) Training and information.--Procedures to ensure that 
        all personnel (including State and local agency staff and 
        contractors) who may have access to or be required to use 
        confidential program data are informed of applicable 
        requirements and penalties (including those in section 6103 of 
        the Internal Revenue Code of 1986), and are adequately trained 
        in security procedures.
            ``(5) Penalties.--Administrative penalties (up to and 
        including dismissal from employment) for unauthorized access 
        to, or disclosure or use of, confidential data.''.
            (3) Regulations.--The Secretary of Health and Human 
        Services shall prescribe final regulations for implementation 
        of section 454A of the Social Security Act not later than 2 
        years after the date of the enactment of this Act.
            (4) Implementation timetable.--Section 454(24) (42 U.S.C. 
        654(24)), as amended by sections 14703(a)(2) and 14712(a)(1) of 
        this Act, is amended to read as follows:
            ``(24) provide that the State will have in effect an 
        automated data processing and information retrieval system--
                    ``(A) by October 1, 1995, which meets all 
                requirements of this part which were enacted on or 
                before the date of enactment of the Family Support Act 
                of 1988; and
                    ``(B) by October 1, 1999, which meets all 
                requirements of this part enacted on or before the date 
                of the enactment of the Personal Responsibility Act of 
                1995, except that such deadline shall be extended by 1 
                day for each day (if any) by which the Secretary fails 
                to meet the deadline imposed by section 14745(a)(3) of 
                the Personal Responsibility Act of 1995.''.
    (b) Special Federal Matching Rate for Development Costs of 
Automated Systems.--
            (1) In general.--Section 455(a) (42 U.S.C. 655(a)) is 
        amended--
                    (A) in paragraph (1)(B)--
                            (i) by striking ``90 percent'' and 
                        inserting ``the percent specified in paragraph 
                        (3)'';
                            (ii) by striking ``so much of''; and
                            (iii) by striking ``which the Secretary'' 
                        and all that follows and inserting ``, and''; 
                        and
                    (B) by adding at the end the following:
    ``(3)(A) The Secretary shall pay to each State, for each quarter in 
fiscal year 1996, 90 percent of so much of the State expenditures 
described in paragraph (1)(B) as the Secretary finds are for a system 
meeting the requirements specified in section 454(16).
    ``(B)(i) The Secretary shall pay to each State, for each quarter in 
fiscal years 1997 through 2001, the percentage specified in clause (ii) 
of so much of the State expenditures described in paragraph (1)(B) as 
the Secretary finds are for a system meeting the requirements of 
sections 454(16) and 454A.
    ``(ii) The percentage specified in this clause is the greater of--
            ``(I) 80 percent; or
            ``(II) the percentage otherwise applicable to Federal 
        payments to the State under subparagraph (A) (as adjusted 
        pursuant to section 458).''.
            (2) Temporary limitation on payments under special federal 
        matching rate.--
                    (A) In general.--The Secretary of Health and Human 
                Services may not pay more than $260,000,000 in the 
                aggregate under section 455(a)(3) of the Social 
                Security Act for fiscal years 1996, 1997, 1998, 1999, 
                and 2000.
                    (B) Allocation of limitation among states.--The 
                total amount payable to a State under section 455(a)(3) 
                of such Act for fiscal years 1996, 1997, 1998, 1999, 
                and 2000 shall not exceed the limitation determined for 
                the State by the Secretary of Health and Human Services 
                in regulations.
                    (C) Allocation formula.--The regulations referred 
                to in subparagraph (B) shall prescribe a formula for 
                allocating the amount specified in subparagraph (A) 
                among States with plans approved under part D of title 
                IV of the Social Security Act, which shall take into 
                account--
                            (i) the relative size of State caseloads 
                        under such part; and
                            (ii) the level of automation needed to meet 
                        the automated data processing requirements of 
                        such part.
    (c) Conforming Amendment.--Section 123(c) of the Family Support Act 
of 1988 (102 Stat. 2352; Public Law 100-485) is repealed.

SEC. 14746. TECHNICAL ASSISTANCE.

    (a) For Training of Federal and State Staff, Research and 
Demonstration Programs, and Special Projects of Regional or National 
Significance.--Section 452 (42 U.S.C. 652) is amended by adding at the 
end the following:
    ``(j) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the Secretary 
for each fiscal year an amount equal to 1 percent of the total amount 
paid to the Federal Government pursuant to section 457(a) during the 
immediately preceding fiscal year (as determined on the basis of the 
most recent reliable data available to the Secretary
 as of the end of the 3rd calendar quarter following the end of such 
preceding fiscal year), to cover costs incurred by the Secretary for--
            ``(1) information dissemination and technical assistance to 
        States, training of State and Federal staff, staffing studies, 
        and related activities needed to improve programs under this 
        part (including technical assistance concerning State automated 
        systems required by this part); and
            ``(2) research, demonstration, and special projects of 
        regional or national significance relating to the operation of 
        State programs under this part.''.
    (b) Operation of Federal Parent Locator Service.--Section 453 (42 
U.S.C. 653), as amended by section 14716(e) of this Act, is amended by 
adding at the end the following:
    ``(n) Out of any money in the Treasury of the United States not 
otherwise appropriated, there is hereby appropriated to the Secretary 
for each fiscal year an amount equal to 2 percent of the total amount 
paid to the Federal Government pursuant to section 457(a) during the 
immediately preceding fiscal year (as determined on the basis of the 
most recent reliable data available to the Secretary as of the end of 
the 3rd calendar quarter following the end of such preceding fiscal 
year), to cover costs incurred by the Secretary for operation of the 
Federal Parent Locator Service under this section, to the extent such 
costs are not recovered through user fees.''.

SEC. 14747. REPORTS AND DATA COLLECTION BY THE SECRETARY.

    (a) Annual Report to Congress.--
            (1) Section 452(a)(10)(A) (42 U.S.C. 652(a)(10)(A)) is 
        amended--
                    (A) by striking ``this part;'' and inserting ``this 
                part, including--''; and
                    (B) by adding at the end the following:
                            ``(i) the total amount of child support 
                        payments collected as a result of services 
                        furnished during the fiscal year to individuals 
                        receiving services under this part;
                            ``(ii) the cost to the States and to the 
                        Federal Government of so furnishing the 
                        services; and
                            ``(iii) the number of cases involving 
                        families--
                                    ``(I) who became ineligible for 
                                assistance under State programs funded 
                                under part A during a month in the 
                                fiscal year; and
                                    ``(II) with respect to whom a child 
                                support payment was received in the 
                                month;''.
            (2) Section 452(a)(10)(C) (42 U.S.C. 652(a)(10)(C)) is 
        amended--
                    (A) in the matter preceding clause (i)--
                            (i) by striking ``with the data required 
                        under each clause being separately stated for 
                        cases'' and inserting ``separately stated for 
                        (1) cases'';
                            (ii) by striking ``cases where the child 
                        was formerly receiving'' and inserting ``or 
                        formerly received'';
                            (iii) by inserting ``or 1912'' after 
                        ``471(a)(17)''; and
                            (iv) by inserting ``(2)'' before ``all 
                        other'';
                    (B) in each of clauses (i) and (ii), by striking 
                ``, and the total amount of such obligations'';
                    (C) in clause (iii), by striking ``described in'' 
                and all that follows and inserting ``in which support 
                was collected during the fiscal year;'';
                    (D) by striking clause (iv);
                    (E) by redesignating clause (v) as clause (vii), 
                and inserting after clause (iii) the following:
                            ``(iv) the total amount of support 
                        collected during such fiscal year and 
                        distributed as current support;
                            ``(v) the total amount of support collected 
                        during such fiscal year and distributed as 
                        arrearages;
                            ``(vi) the total amount of support due and 
                        unpaid for all fiscal years; and''.
            (3) Section 452(a)(10)(G) (42 U.S.C. 652(a)(10)(G)) is 
        amended by striking ``on the use of Federal courts and''.
            (4) Section 452(a)(10) (42 U.S.C. 652(a)(10)) is amended by 
        striking all that follows subparagraph (I).
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective with respect to fiscal year 1996 and succeeding fiscal years.

      CHAPTER 6--ESTABLISHMENT AND MODIFICATION OF SUPPORT ORDERS

SEC. 14751. SIMPLIFIED PROCESS FOR REVIEW AND ADJUSTMENT OF CHILD 
              SUPPORT ORDERS.

    Section 466(a)(10) (42 U.S.C. 666(a)(10)) is amended to read as 
follows:
            ``(10) Review and adjustment of support orders.--Procedures 
        under which the State shall review and adjust each support 
        order being enforced under this part. Such procedures shall 
        provide the following:
                    ``(A) The State shall review and, as appropriate, 
                adjust the support order every 3 years, taking into 
                account the best interests of the child involved.
                    ``(B)(i) The State may elect to review and, if 
                appropriate, adjust an order pursuant to subparagraph 
                (A) by--
                            ``(I) reviewing and, if appropriate, 
                        adjusting the order in accordance with the 
                        guidelines established pursuant to section 
                        467(a) if the amount of the child support award 
                        under the order differs from the amount that 
                        would be awarded in accordance with the 
                        guidelines; or
                            ``(II) applying a cost-of-living adjustment 
                        to the order in accordance with a formula 
                        developed by the State and permit either party 
                        to contest the adjustment, within 30 days after 
                        the date of the notice of the adjustment, by 
                        making a request for review and, if 
                        appropriate, adjustment of the order in 
                        accordance with the child support guidelines 
                        established pursuant to section 467(a).
                    ``(ii) Any adjustment under clause (i) shall be 
                made without a requirement for proof or showing of a 
                change in circumstances.
                    ``(C) The State may use automated methods 
                (including automated comparisons with wage or State 
                income tax data) to identify orders eligible for 
                review, conduct the review, identify orders eligible 
                for adjustment, apply the appropriate adjustment to the 
                orders eligible for adjustment under the threshold 
                established by the State.
                    ``(D) The State shall, at the request of either 
                parent subject to such an order or of any State child 
                support enforcement agency, review and, if appropriate, 
                adjust the order in accordance with the guidelines 
                established pursuant to section 467(a) based upon a 
                substantial change in the circumstances of either 
                parent.
                    ``(E) The State shall provide notice to the parents 
                subject to such an order informing them of their right 
                to request the State to review and, if appropriate, 
                adjust the order pursuant to subparagraph (D). The 
                notice may be included in the order.''.

SEC. 14752. FURNISHING CONSUMER REPORTS FOR CERTAIN PURPOSES RELATING 
              TO CHILD SUPPORT.

    Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is 
amended by adding at the end the following:
            ``(4) In response to a request by the head of a State or 
        local child support enforcement agency (or a State or local 
        government official authorized by the head of such an agency), 
        if the person making the request certifies to the consumer 
        reporting agency that--
                    ``(A) the consumer report is needed for the purpose 
                of establishing an individual's capacity to make child 
                support payments or determining the appropriate level 
                of such payments;
                    ``(B) the person has provided at least 10 days 
                prior notice to the consumer whose report is requested, 
                by certified or registered mail to the last known 
                address of the consumer, that the report will be 
                requested, and
                    ``(C) the consumer report will be kept 
                confidential, will be used solely for a purpose 
                described in subparagraph (A), and will not be used in 
                connection with any other civil, administrative, or 
                criminal proceeding, or for any other purpose.
            ``(5) To an agency administering a State plan under section 
        454 of the Social Security Act (42 U.S.C. 654) for use to set 
        an initial or modified child support award.''.

                CHAPTER 7--ENFORCEMENT OF SUPPORT ORDERS

SEC. 14761. FEDERAL INCOME TAX REFUND OFFSET.

    (a) Changed Order of Refund Distribution Under Internal Revenue 
Code.--
            (1) Subsection (c) of section 6402 of the Internal Revenue 
        Code of 1986 is amended by striking the third sentence and 
        inserting the following new sentences: ``A reduction under this 
        subsection shall be after any other reduction allowed by 
        subsection (d) with respect to the Department of Health and 
        Human Services and the Department of Education with respect to 
        a student loan and before any other reduction allowed by law 
        and before such overpayment is credited to the future liability 
        for tax of such person pursuant to subsection (b). A reduction 
        under this subsection shall be assigned to the State with 
        respect to past-due support owed to individuals for periods 
        such individuals were receiving assistance under part A or B of 
        title IV of the Social Security Act only after satisfying all 
        other past-due support.''.
            (2) Paragraph (2) of section 6402(d) of such Code is 
        amended--
                    (A) by striking ``Any overpayment'' and inserting 
                ``Except in the case of past-due legally enforceable 
                debts owed to the Department of Health and Human 
                Services or to the Department of Education with respect 
                to a student loan, any overpayment''; and
                    (B) by striking ``with respect to past-due support 
                collected pursuant to an assignment under section 
                402(a)(26) of the Social Security Act''.
    (b) Elimination of Disparities in Treatment of Assigned and Non-
Assigned Arrearages.--
            (1) Section 464(a) (42 U.S.C. 664(a)) is amended--
                    (A) by striking ``(a)'' and inserting ``(a) Offset 
                Authorized.--'';
                    (B) in paragraph (1)--
                            (i) in the 1st sentence, by striking 
                        ``which has been assigned to such State 
                        pursuant to section 402(a)(26) or section 
                        471(a)(17)''; and
                            (ii) in the 2nd sentence, by striking ``in 
                        accordance with section 457(b)(4) or (d)(3)'' 
                        and inserting ``as provided in paragraph (2)'';
                    (C) by striking paragraph (2) and inserting the 
                following:
    ``(2) The State agency shall distribute amounts paid by the 
Secretary of the Treasury pursuant to paragraph (1)--
            ``(A) in accordance with section 457(a), in the case of 
        past-due support assigned to a State pursuant to requirements 
        imposed pursuant to section 405(a)(8); and
            ``(B) to or on behalf of the child to whom the support was 
        owed, in the case of past-due support not so assigned.''; and
                    (D) in paragraph (3)--
                            (i) by striking ``or (2)'' each place such 
                        term appears; and
                            (ii) in subparagraph (B), by striking 
                        ``under paragraph (2)'' and inserting ``on 
                        account of past-due support described in 
                        paragraph (2)(B)''.
            (2) Section 464(b) (42 U.S.C. 664(b)) is amended--
                    (A) by striking ``(b)(1)'' and inserting the 
                following:
    ``(b) Regulations.--''; and
                    (B) by striking paragraph (2).
            (3) Section 464(c) (42 U.S.C. 664(c)) is amended--
                    (A) by striking ``(c)(1) Except as provided in 
                paragraph (2), as'' and inserting the following:
    ``(c) Definition.--As''; and
                    (B) by striking paragraphs (2) and (3).

SEC. 14762. AUTHORITY TO COLLECT SUPPORT FROM FEDERAL EMPLOYEES.

    (a) Consolidation and Streamlining of Authorities.--Section 459 (42 
U.S.C. 659) is amended to read as follows:

``SEC. 459. CONSENT BY THE UNITED STATES TO INCOME WITHHOLDING, 
              GARNISHMENT, AND SIMILAR PROCEEDINGS FOR ENFORCEMENT OF 
              CHILD SUPPORT AND ALIMONY OBLIGATIONS.

    ``(a) Consent to Support Enforcement.--Notwithstanding any other 
provision of law (including section 207 of this Act and section 5301 of 
title 38, United States Code), effective January 1, 1975, moneys (the 
entitlement to which is based upon remuneration for employment) due 
from, or payable by, the United States or the District of Columbia 
(including any agency, subdivision, or instrumentality thereof) to any 
individual, including members of the Armed Forces of the United States, 
shall be subject, in like manner and to the same extent as if the 
United States or the District of Columbia were a private person, to 
withholding in accordance with State law enacted pursuant to 
subsections (a)(1) and (b) of section 466 and regulations of the 
Secretary under such subsections, and to any other legal process 
brought, by a State agency administering a program under a State plan 
approved under this part or by an individual obligee, to enforce the 
legal obligation of the individual to provide child support or alimony.
    ``(b) Consent to Requirements Applicable to Private Person.--With 
respect to notice to withhold income pursuant to subsection (a)(1) or 
(b) of section 466, or any other order or process to enforce support 
obligations against an individual (if the order or process contains or 
is accompanied by sufficient data to permit prompt identification of 
the individual and the moneys involved), each governmental entity 
specified in subsection (a) shall be subject to the same requirements 
as would apply if the entity were a private person, except as otherwise 
provided in this section.
    ``(c) Designation of Agent; Response to Notice or Process--
            ``(1) Designation of agent.--The head of each agency 
        subject to this section shall--
                    ``(A) designate an agent or agents to receive 
                orders and accept service of process in matters 
                relating to child support or alimony; and
                    ``(B) annually publish in the Federal Register the 
                designation of the agent or agents, identified by title 
                or position, mailing address, and telephone number.
            ``(2) Response to notice or process.--If an agent 
        designated pursuant to paragraph (1) of this subsection 
        receives notice pursuant to State procedures in effect pursuant 
        to subsection (a)(1) or (b) of section 466, or is effectively 
        served with any order, process, or interrogatory, with respect 
        to an individual's child support or alimony payment 
        obligations, the agent shall--
                    ``(A) as soon as possible (but not later than 15 
                days) thereafter, send written notice of the notice or 
                service (together with a copy of the notice or service) 
                to the individual at the duty station or last-known 
                home address of the individual;
                    ``(B) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after receipt of 
                a notice pursuant to such State procedures, comply with 
                all applicable provisions of section 466; and
                    ``(C) within 30 days (or such longer period as may 
                be prescribed by applicable State law) after effective 
                service of any other such order, process, or 
                interrogatory, respond to the order, process, or 
                interrogatory.
    ``(d) Priority of Claims.--If a governmental entity specified in 
subsection (a) receives notice or is served with process, as provided 
in this section, concerning amounts owed by an individual to more than 
1 person--
            ``(1) support collection under section 466(b) must be given 
        priority over any other process, as provided in section 
        466(b)(7);
            ``(2) allocation of moneys due or payable to an individual 
        among claimants under section 466(b) shall be governed by 
        section 466(b) and the regulations prescribed under such 
        section; and
            ``(3) such moneys as remain after compliance with 
        paragraphs (1) and (2) shall be available to satisfy any other 
        such processes on a first-come, first-served basis, with any 
        such process being satisfied out of such moneys as remain after 
        the satisfaction of all such processes which have been 
        previously served.
    ``(e) No Requirement to Vary Pay Cycles.--A governmental entity 
that is affected by legal process served for the enforcement of an 
individual's child support or alimony payment obligations shall not be 
required to vary its normal pay and disbursement cycle in order to 
comply with the legal process.
    ``(f) Relief From Liability.--
            ``(1) Neither the United States, nor the government of the 
        District of Columbia, nor any disbursing officer shall be 
        liable with respect to any payment made from moneys due or 
        payable from the United States to any individual pursuant to 
        legal process regular on its face, if the payment is made in 
        accordance with this section and the regulations issued to 
        carry out this section.
            ``(2) No Federal employee whose duties include taking 
        actions necessary to comply with the requirements of subsection 
        (a) with regard to any individual shall be subject under any 
        law to any disciplinary action or civil or criminal liability 
        or penalty for, or on account of, any disclosure of information 
        made by the employee in connection with the carrying out of 
        such actions.
    ``(g) Regulations.--Authority to promulgate regulations for the 
implementation of this section shall, insofar as this section applies 
to moneys due from (or payable by)--
            ``(1) the United States (other than the legislative or 
        judicial branches of the Federal Government) or the government 
        of the District of Columbia, be vested in the President (or the 
        designee of the President);
            ``(2) the legislative branch of the Federal Government, be 
        vested jointly in the President pro tempore of the Senate and 
        the Speaker of the House of Representatives (or their 
        designees), and
            ``(3) the judicial branch of the Federal Government, be 
        vested in the Chief Justice of the United States (or the 
        designee of the Chief Justice).
    ``(h) Moneys Subject to Process.--
            ``(1) In general.--Subject to paragraph (2), moneys paid or 
        payable to an individual which are considered to be based upon 
        remuneration for employment, for purposes of this section--
                    ``(A) consist of--
                            ``(i) compensation paid or payable for 
                        personal services of the individual, whether 
                        the compensation is denominated as wages, 
                        salary, commission, bonus, pay, allowances, or 
                        otherwise (including severance pay, sick pay, 
                        and incentive pay);
                            ``(ii) periodic benefits (including a 
                        periodic benefit as defined in section 
                        228(h)(3)) or other payments--
                                    ``(I) under the insurance system 
                                established by title II;
                                    ``(II) under any other system or 
                                fund established by the United States 
                                which provides for the payment of 
                                pensions, retirement or retired pay, 
                                annuities, dependents' or survivors' 
                                benefits, or similar amounts payable on 
                                account of personal services performed 
                                by the individual or any other 
                                individual;
                                    ``(III) as compensation for death 
                                under any Federal program;
                                    ``(IV) under any Federal program 
                                established to provide `black lung' 
                                benefits; or
                                    ``(V) by the Secretary of Veterans 
                                Affairs as pension, or as compensation 
                                for a service-connected disability or 
                                death (except any compensation paid by 
                                the Secretary to a member of the Armed 
                                Forces who is in receipt of retired or 
                                retainer pay if the member has waived a 
                                portion of the retired pay of the 
                                member in order to receive the 
                                compensation); and
                            ``(iii) worker's compensation benefits paid 
                        under Federal or State law but
                    ``(B) do not include any payment--
                            ``(i) by way of reimbursement or otherwise, 
                        to defray expenses incurred by the individual 
                        in carrying out duties associated with the 
                        employment of the individual; or
                            ``(ii) as allowances for members of the 
                        uniformed services payable pursuant to chapter 
                        7 of title 37, United States Code, as 
                        prescribed by the Secretaries concerned 
                        (defined by section 101(5) of such title) as 
                        necessary for the efficient performance of 
                        duty.
            ``(2) Certain amounts excluded.--In determining the amount 
        of any moneys due from, or payable by, the United States to any 
        individual, there shall be excluded amounts which--
                    ``(A) are owed by the individual to the United 
                States;
                    ``(B) are required by law to be, and are, deducted 
                from the remuneration or other payment involved, 
                including Federal employment taxes, and fines and 
                forfeitures ordered by court-martial;
                    ``(C) are properly withheld for Federal, State, or 
                local income tax purposes, if the withholding of the 
                amounts is authorized or required by law and if amounts 
                withheld are not greater than would be the case if the 
                individual claimed all dependents to which he was 
                entitled (the withholding of additional amounts 
                pursuant to section 3402(i) of the Internal Revenue 
                Code of 1986 may be permitted only when the individual 
                presents evidence of a tax obligation which supports 
                the additional withholding);
                    ``(D) are deducted as health insurance premiums;
                    ``(E) are deducted as normal retirement 
                contributions (not including amounts deducted for 
                supplementary coverage); or
                    ``(F) are deducted as normal life insurance 
                premiums from salary or other remuneration for 
                employment (not including amounts deducted for 
                supplementary coverage).
    ``(i) Definitions.--As used in this section:
            ``(1) United states.--The term `United States' includes any 
        department, agency, or instrumentality of the legislative, 
        judicial, or executive branch of the Federal Government, the 
        United
         States Postal Service, the Postal Rate Commission, any Federal 
corporation created by an Act of Congress that is wholly owned by the 
Federal Government, and the governments of the territories and 
possessions of the United States.
            ``(2) Child support.--The term `child support', when used 
        in reference to the legal obligations of an individual to 
        provide such support, means periodic payments of funds for the 
        support and maintenance of a child or children with respect to 
        which the individual has such an obligation, and (subject to 
        and in accordance with State law) includes payments to provide 
        for health care, education, recreation, clothing, or to meet 
        other specific needs of such a child or children, and includes 
        attorney's fees, interest, and court costs, when and to the 
        extent that the same are expressly made recoverable as such 
        pursuant to a decree, order, or judgment issued in accordance 
        with applicable State law by a court of competent jurisdiction.
            ``(3) Alimony.--The term `alimony', when used in reference 
        to the legal obligations of an individual to provide the same, 
        means periodic payments of funds for the support and 
        maintenance of the spouse (or former spouse) of the individual, 
        and (subject to and in accordance with State law) includes 
        separate maintenance, alimony pendente lite, maintenance, and 
        spousal support, and includes attorney's fees, interest, and 
        court costs when and to the extent that the same are expressly 
        made recoverable as such pursuant to a decree, order, or 
        judgment issued in accordance with applicable State law by a 
        court of competent jurisdiction. Such term does not include any 
        payment or transfer of property or its value by an individual 
        to the spouse or a former spouse of the individual in 
        compliance with any community property settlement, equitable 
        distribution of property, or other division of property between 
        spouses or former spouses.
            ``(4) Private person.--The term `private person' means a 
        person who does not have sovereign or other special immunity or 
        privilege which causes the person not to be subject to legal 
        process.
            ``(5) Legal process.--The term `legal process' means any 
        writ, order, summons, or other similar process in the nature of 
        garnishment--
                    ``(A) which is issued by--
                            ``(i) a court of competent jurisdiction in 
                        any State, territory, or possession of the 
                        United States;
                            ``(ii) a court of competent jurisdiction in 
                        any foreign country with which the United 
                        States has entered into an agreement which 
                        requires the United States to honor the 
                        process; or
                            ``(iii) an authorized official pursuant to 
                        an order of such a court of competent 
                        jurisdiction or pursuant to State or local law; 
                        and
                    ``(B) which is directed to, and the purpose of 
                which is to compel, a governmental entity which holds 
                moneys which are otherwise payable to an individual to 
                make a payment from the moneys to another party in 
                order to satisfy a legal obligation of the individual 
                to provide child support or make alimony payments.''.
    (b) Conforming Amendments.--
            (1) To part d of title iv.--Sections 461 and 462 (42 U.S.C. 
        661 and 662) are repealed.
            (2) To title 5, united states code.--Section 5520a of title 
        5, United States Code, is amended, in subsections (h)(2) and 
        (i), by striking ``sections 459, 461, and 462 of the Social 
        Security Act (42 U.S.C. 659, 661, and 662)'' and inserting 
        ``section 459 of the Social Security Act (42 U.S.C. 659)''.
    (c) Military Retired and Retainer Pay.--
            (1) Definition of court.--Section 1408(a)(1) of title 10, 
        United States Code, is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding after subparagraph (C) the following:
                    ``(D) any administrative or judicial tribunal of a 
                State competent to enter orders for support or 
                maintenance (including a State agency administering a 
                program under a State plan approved under part D of 
                title IV of the Social Security Act), and, for purposes 
                of this subparagraph, the term `State' includes the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, and American Samoa.''.
            (2) Definition of court order.--Section 1408(a)(2) of such 
        title is amended by inserting ``or a court order for the 
        payment of child support not included in or accompanied by such 
        a decree or settlement,'' before ``which--''.
            (3) Public payee.--Section 1408(d) of such title is 
        amended--
                    (A) in the heading, by inserting ``(or for Benefit 
                of)'' before ``Spouse or''; and
                    (B) in paragraph (1), in the first sentence, by 
                inserting ``(or for the benefit of such spouse or 
                former spouse to a State disbursement unit established 
                pursuant to section 454B of the Social Security Act or 
                other public payee designated by a State, in accordance 
                with part D of title IV of the Social Security Act, as 
                directed by court order, or as otherwise directed in 
                accordance with such part D)'' before ``in an amount 
                sufficient''.
            (4) Relationship to part d of title iv.--Section 1408 of 
        such title is amended by adding at the end the following:
    ``(j) Relationship to Other Laws.--In any case involving an order 
providing for payment of child support (as defined in section 459(i)(2) 
of the Social Security Act) by a member who has never been married to 
the other parent of the child, the provisions of this section shall not
 apply, and the case shall be subject to the provisions of section 459 
of such Act.''.
    (d) Effective Date.--The amendments made by this section shall 
become effective 6 months after the date of the enactment of this Act.

SEC. 14763. ENFORCEMENT OF CHILD SUPPORT OBLIGATIONS OF MEMBERS OF THE 
              ARMED FORCES.

    (a) Availability of Locator Information.--
            (1) Maintenance of address information.--The Secretary of 
        Defense shall establish a centralized personnel locator service 
        that includes the address of each member of the Armed Forces 
        under the jurisdiction of the Secretary. Upon request of the 
        Secretary of Transportation, addresses for members of the Coast 
        Guard shall be included in the centralized personnel locator 
        service.
            (2) Type of address.--
                    (A) Residential address.--Except as provided in 
                subparagraph (B), the address for a member of the Armed 
                Forces shown in the locator service shall be the 
                residential address of that member.
                    (B) Duty address.--The address for a member of the 
                Armed Forces shown in the locator service shall be the 
                duty address of that member in the case of a member--
                            (i) who is permanently assigned overseas, 
                        to a vessel, or to a routinely deployable unit; 
                        or
                            (ii) with respect to whom the Secretary 
                        concerned makes a determination that the 
                        member's residential address should not be 
                        disclosed due to national security or safety 
                        concerns.
            (3) Updating of locator information.--Within 30 days after 
        a member listed in the locator service establishes a new 
        residential address (or a new duty address, in the case of a 
        member covered by paragraph (2)(B)), the Secretary concerned 
        shall update the locator service to indicate the new address of 
        the member.
            (4) Availability of information.--The Secretary of Defense 
        shall make information regarding the address of a member of the 
        Armed Forces listed in the locator service available, on 
        request, to the Federal Parent Locator Service established 
        under section 453 of the Social Security Act.
    (b) Facilitating Granting of Leave for Attendance at Hearings.--
            (1) Regulations.--The Secretary of each military 
        department, and the Secretary of Transportation with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy, shall prescribe regulations to facilitate the granting of 
        leave to a member of the Armed Forces under the jurisdiction of 
        that Secretary in a case in which--
                    (A) the leave is needed for the member to attend a 
                hearing described in paragraph (2);
                    (B) the member is not serving in or with a unit 
                deployed in a contingency operation (as defined in 
                section 101 of title 10, United States Code); and
                    (C) the exigencies of military service (as 
                determined by the Secretary concerned) do not otherwise 
                require that such leave not be granted.
            (2) Covered hearings.--Paragraph (1) applies to a hearing 
        that is conducted by a court or pursuant to an administrative 
        process established under State law, in connection with a civil 
        action--
                    (A) to determine whether a member of the Armed 
                Forces is a natural parent of a child; or
                    (B) to determine an obligation of a member of the 
                Armed Forces to provide child support.
            (3) Definitions.--For purposes of this subsection:
                    (A) The term ``court'' has the meaning given that 
                term in section 1408(a) of title 10, United States 
                Code.
                    (B) The term ``child support'' has the meaning 
                given such term in section 459(i) of the Social 
                Security Act (42 U.S.C. 659(i)).
    (c) Payment of Military Retired Pay in Compliance With Child 
Support Orders.--
            (1) Date of certification of court order.--Section 1408 of 
        title 10, United States Code, as amended by section 14762(c)(4) 
        of this Act, is amended--
                    (A) by redesignating subsections (i) and (j) as 
                subsections (j) and (k), respectively; and
                    (B) by inserting after subsection (h) the 
                following:
    ``(i) Certification Date.--It is not necessary that the date of a 
certification of the authenticity or completeness of a copy of a court 
order for child support received by the Secretary concerned for the 
purposes of this section be recent in relation to the date of receipt 
by the Secretary.''.
            (2) Payments consistent with assignments of rights to 
        states.--Section 1408(d)(1) of such title is amended by 
        inserting after the 1st sentence the following: ``In the case 
        of a spouse or former spouse who, pursuant to section 405(a)(8) 
        of the Social Security Act (42 U.S.C. 605(a)(8)), assigns to a 
        State the rights of the spouse or former spouse to receive 
        support, the Secretary concerned may make the child support 
        payments referred to in the preceding sentence to that State in 
        amounts consistent with that assignment of rights.''.
            (3) Arrearages owed by members of the uniformed services.--
        Section 1408(d) of such title is amended by adding at the end 
        the following:
    ``(6) In the case of a court order for which effective service is 
made on the Secretary concerned on or after the date of the enactment 
of this paragraph and which provides for payments from the disposable 
retired pay of a member to satisfy the amount of child support set 
forth in the order, the authority provided in paragraph (1) to make 
payments from the disposable retired pay of a member to satisfy the 
amount of child support set forth in a court order shall apply to 
payment of any amount of child
 support arrearages set forth in that order as well as to amounts of 
child support that currently become due.''.
            (4) Payroll deductions.--The Secretary of Defense shall 
        begin payroll deductions within 30 days after receiving notice 
        of withholding, or for the first pay period that begins after 
        such 30-day period.

SEC. 14764. VOIDING OF FRAUDULENT TRANSFERS.

    Section 466 (42 U.S.C. 666), as amended by section 14721 of this 
Act, is amended by adding at the end the following:
    ``(g) Laws Voiding Fraudulent Transfers.--In order to satisfy 
section 454(20)(A), each State must have in effect--
            ``(1)(A) the Uniform Fraudulent Conveyance Act of 1981;
            ``(B) the Uniform Fraudulent Transfer Act of 1984; or
            ``(C) another law, specifying indicia of fraud which create 
        a prima facie case that a debtor transferred income or property 
        to avoid payment to a child support creditor, which the 
        Secretary finds affords comparable rights to child support 
        creditors; and
            ``(2) procedures under which, in any case in which the 
        State knows of a transfer by a child support debtor with 
        respect to which such a prima facie case is established, the 
        State must--
                    ``(A) seek to void such transfer; or
                    ``(B) obtain a settlement in the best interests of 
                the child support creditor.''.

SEC. 14765. SENSE OF THE CONGRESS THAT STATES SHOULD SUSPEND DRIVERS', 
              BUSINESS, AND OCCUPATIONAL LICENSES OF PERSONS OWING 
              PAST-DUE CHILD SUPPORT.

    It is the sense of the Congress that each State should suspend any 
driver's license, business license, or occupational license issued to 
any person who owes past-due child support.

SEC. 14766. WORK REQUIREMENT FOR PERSONS OWING PAST-DUE CHILD SUPPORT.

    Section 466(a) of the Social Security Act (42 U.S.C. 666(a)), as 
amended by sections 14701(a), 14715, 14717(a), and 14723 of this Act, 
is amended by adding at the end the following:
            ``(16) Procedures to ensure that persons owing past-due 
        support work or have a plan for payment of such support.--
                    ``(A) Procedures requiring the State, in any case 
                in which an individual owes past-due support with 
                respect to a child receiving assistance under a State 
                program funded under part A, to seek a court order that 
                requires the individual to--
                            ``(i) pay such support in accordance with a 
                        plan approved by the court; or
                            ``(ii) if the individual is subject to such 
                        a plan and is not incapacitated, participate in 
                        such work activities (as defined in section 
                        404(b)(1)) as the court deems appropriate.
                    ``(B) As used in subparagraph (A), the term `past-
                due support' means the amount of a delinquency, 
                determined under a court order, or an order of an 
                administrative process established under State law, for 
                support and maintenance of a child, or of a child and 
                the parent with whom the child is living.''.

SEC. 14767. DEFINITION OF SUPPORT ORDER.

    Section 453 (42 U.S.C. 653) as amended by sections 14716 and 
14746(b) of this Act, is amended by adding at the end the following:
    ``(o) Support Order Defined.--As used in this part, the term 
`support order' means an order issued by a court or an administrative 
process established under State law that requires support and 
maintenance of a child or of a child and the parent with whom the child 
is living.''.

SEC. 14768. LIENS.

    Section 466(a)(4) (42 U.S.C. 666(a)(4)) is amended to read as 
follows:
            ``(4) Procedures under which--
                    ``(A) liens arise by operation of law against real 
                and personal property for amounts of overdue support 
                owed by an absent parent who resides or owns property 
                in the State; and
                    ``(B) the State accords full faith and credit to 
                liens described in subparagraph (A) arising in another 
                State, without registration of the underlying order.''.

SEC. 14769. STATE LAW AUTHORIZING SUSPENSION OF LICENSES.

    Section 466(a) (42 U.S.C. 666(a)), as amended by sections 14715, 
14717(a), and 14723 of this Act, is amended by adding at the end the 
following:
            ``(15) Authority to withhold or suspend licenses.--
        Procedures under which the State has (and uses in appropriate 
        cases) authority to withhold or suspend, or to restrict the use 
        of driver's licenses, professional and occupational licenses, 
        and recreational licenses of individuals owing overdue support 
        or failing, after receiving appropriate notice, to comply with 
        subpoenas or warrants relating to paternity or child support 
        proceedings.''.

                       CHAPTER 8--MEDICAL SUPPORT

SEC. 14771. TECHNICAL CORRECTION TO ERISA DEFINITION OF MEDICAL CHILD 
              SUPPORT ORDER.

    (a) In General.--Section 609(a)(2)(B) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1169(a)(2)(B)) is amended--
            (1) by striking ``issued by a court of competent 
        jurisdiction'';
            (2) by striking the period at the end of clause (ii) and 
        inserting a comma; and
            (3) by adding, after and below clause (ii), the following:
                ``if such judgment, decree, or order (I) is issued by a 
                court of competent jurisdiction or (II) is issued 
                through an administrative process established under 
                State law and has the force and effect of law under 
                applicable State law.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Plan amendments not required until january 1, 1996.--
        Any amendment to a plan required to be made by an amendment 
        made by this section shall not be required to be made before 
        the first plan year beginning on or after January 1, 1996, if--
                    (A) during the period after the date before the 
                date of the enactment of this Act and before such first 
                plan year, the plan is operated in accordance with the 
                requirements of the amendments made by this section; 
                and
                    (B) such plan amendment applies retroactively to 
                the period after the date before the date of the 
                enactment of this Act and before such first plan year.
        A plan shall not be treated as failing to be operated in 
        accordance with the provisions of the plan merely because it 
        operates in accordance with this paragraph.

     CHAPTER 9--ENHANCING RESPONSIBILITY AND OPPORTUNITY FOR NON- 
                          RESIDENTIAL PARENTS

SEC. 14781. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    Part D of title IV (42 U.S.C. 651-669) is amended by adding at the 
end the following:

``SEC. 469A. GRANTS TO STATES FOR ACCESS AND VISITATION PROGRAMS.

    ``(a) In General.--The Administration for Children and Families 
shall make grants under this section to enable States to establish and 
administer programs to support and facilitate absent parents' access to 
and visitation of their children, by means of activities including 
mediation (both voluntary and mandatory), counseling, education, 
development of parenting plans, visitation enforcement (including 
monitoring, supervision and neutral drop-off and pickup), and 
development of guidelines for visitation and alternative custody 
arrangements.
    ``(b) Amount of Grant.--The amount of the grant to be made to a 
State under this section for a fiscal year shall be an amount equal to 
the lesser of--
            ``(1) 90 percent of State expenditures during the fiscal 
        year for activities described in subsection (a); or
            ``(2) the allotment of the State under subsection (c) for 
        the fiscal year.
    ``(c) Allotments to States.--
            ``(1) In general.--The allotment of a State for a fiscal 
        year is the amount that bears the same ratio to the amount 
        appropriated for grants under this section for the fiscal year 
        as the number of children in the State living with only 1 
        biological parent bears to the total number of such children in 
        all States.
            ``(2) Minimum allotment.--The Administration for Children 
        and Families shall adjust allotments to States under paragraph 
        (1) as necessary to ensure that no State is allotted less 
        than--
                    ``(A) $50,000 for fiscal year 1996 or 1997; or
                    ``(B) $100,000 for any succeeding fiscal year.
    ``(d) No Supplantation of State Expenditures for Similar 
Activities.--A State to which a grant is made under this section may 
not use the grant to supplant expenditures by the State for activities 
specified in subsection (a), but shall use the grant to supplement such 
expenditures at a level at least equal to the level of such 
expenditures for fiscal year 1995.
    ``(e) State Administration.--Each State to which a grant is made 
under this section--
            ``(1) may administer State programs funded with the grant, 
        directly or through grants to or contracts with courts, local 
        public agencies, or non-profit private entities;
            ``(2) shall not be required to operate such programs on a 
        statewide basis; and
            ``(3) shall monitor, evaluate, and report on such programs 
        in accordance with regulations prescribed by the Secretary.''.

                    CHAPTER 10--EFFECT OF ENACTMENT

SEC. 14791. EFFECTIVE DATES.

    (a) In General.--Except as otherwise specifically provided (but 
subject to subsections (b) and (c))--
            (1) the provisions of this subtitle requiring the enactment 
        or amendment of State laws under section 466 of the Social 
        Security Act, or revision of State plans under section 454 of 
        such Act, shall be effective with respect to periods beginning 
        on and after October 1, 1996; and
            (2) all other provisions of this subtitle shall become 
        effective upon enactment.
    (b) Grace Period for State Law Changes.--The provisions of this 
subtitle shall become effective with respect to a State on the later 
of--
            (1) the date specified in this subtitle, or
            (2) the effective date of laws enacted by the legislature 
        of such State implementing such provisions,
but in no event later than the first day of the first calendar quarter 
beginning after the close of the first regular session of the State 
legislature that begins after the date of the enactment of this Act. 
For purposes of the previous sentence, in the case of a State that has 
a 2-year legislative session, each year of such session shall be deemed 
to be a separate regular session of the State legislature.
    (c) Grace Period for State Constitutional Amendment.--A State shall 
not be found out of compliance with any requirement enacted by this 
subtitle if the State is unable to so comply without amending the State 
constitution until the earlier of--
            (1) 1 year after the effective date of the necessary State 
        constitutional amendment; or
            (2) 5 years after the date of the enactment of this 
        subtitle.

                  CHAPTER 11--MISCELLANEOUS PROVISIONS

SEC. 14801. SCORING.

    Section 251(b)(2) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by adding at the end the following new 
subparagraph:
            ``(H) Special allowance for welfare reform.--For any fiscal 
        year, the adjustments shall be appropriations for discretionary 
        programs resulting from the Personal Responsibility Act of 1995 
        (as described in the joint explanatory statement accompanying a 
        conference report on that Act) in discretionary accounts and 
        the outlays flowing in all years from such appropriations (but 
        not to exceed amounts authorized for those programs by that Act 
        for that fiscal year) minus appropriations for comparable 
        discretionary programs for fiscal year 1995 (as described in 
        the joint explanatory statement accompanying a conference 
        report on that Act.''.

SEC. 14802. PROVISIONS TO ENCOURAGE ELECTRONIC BENEFIT TRANSFER 
              SYSTEMS.

    Section 904 of the Electronic Fund Transfer Act (15 U.S.C. 1693b) 
is amended--
            (1) by striking ``(d) In the event'' and inserting ``(d) 
        Applicability to Service Providers Other Than Certain Financial 
        Institutions.--
            ``(1) In general.--In the event''; and
            (2) by adding at the end the following new paragraph:
            ``(2) State and local government electronic benefit 
        transfer programs.--
                    ``(A) Exemption generally.--The disclosures, 
                protections, responsibilities, and remedies established 
                under this title, and any regulation prescribed or 
                order issued by the Board in accordance with this 
                title, shall not apply to any electronic benefit 
                transfer program established under State or local law 
                or administered by a State or local government.
                    ``(B) Exception for direct deposit into recipient's 
                account.--Subparagraph (A) shall not apply with respect 
                to any electronic funds transfer under an electronic 
                benefit transfer program for deposits directly into a 
                consumer account held by the recipient of the benefit.
                    ``(C) Rule of construction.--No provision of this 
                paragraph may be construed as--
                            ``(i) affecting or altering the protections 
                        otherwise applicable with respect to benefits 
                        established by Federal, State, or local law; or
                            ``(ii) otherwise superseding the 
                        application of any State or local law.
                    ``(D) Electronic benefit transfer program 
                defined.--For purposes of this paragraph, the term 
                `electronic benefit transfer program'--
                            ``(i) means a program under which a 
                        government agency distributes needs-tested 
                        benefits by establishing accounts to be 
                        accessed by recipients electronically, such as 
                        through automated teller machines, or point-of-
                        sale terminals; and
                            ``(ii) does not include employment-related 
                        payments, including salaries and pension, 
                        retirement, or unemployment benefits 
                        established by Federal, State, or local 
                        governments.''.
               TITLE XV--VETERANS' BENEFITS AND SERVICES

                   Subtitle A--Administrative Reforms
SEC. 15001. REDUCTION IN OVERHEAD EXPENSES OF DEPARTMENT OF VETERANS 
              AFFAIRS.

    (a) In General.--The amount obligated by the Department of Veterans 
Affairs during fiscal year 1996 for overhead expenses shall not exceed 
an amount sufficient to reduce outlays for such expenses during such 
fiscal year (as compared to such outlays during fiscal year 1995) by 
$424,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).

           Subtitle B--Extension of Certain Veterans Programs

SEC. 15011. PERMANENT EXTENSION OF AUTHORITY FOR COPAYMENT CHARGE FOR 
              MEDICATIONS.

    Section 1722A of title 38, United States Code, is amended by 
striking subsection (c).

SEC. 15012. PERMANENT EXTENSION OF AUTHORITY FOR MEDICAL CARE COST 
              RECOVERY.

    Section 1729(a)(2)(E) of title 38, United States Code, is amended 
by striking ``before October 1, 1998,''.

SEC. 15013. PERMANENT EXTENSION OF AUTHORITY FOR INCOME VERIFICATION 
              PROCEDURES.

    Section 5317 of title 38, United States Code, is amended by 
striking subsection (g).

SEC. 15014. PERMANENT EXTENSION OF AUTHORITY FOR PROCEDURES APPLICABLE 
              TO LIQUIDATION SALES ON DEFAULTED HOME LOANS.

    Section 3732(c) of title 38, United States Code, is amended by 
striking paragraph (11).

            Subtitle C--Home Loan Guarantee Program Reforms

SEC. 15021. RESTRICTION ON USE OF MULTIPLE VA HOUSING LOAN GUARANTY 
              BENEFITS.

    (a) Repeal of Circumstances Excluded From Computation of Aggregate 
Amount of Guaranty Available.--Section 3702 of title 38, United States 
Code, is amended by striking out subsection (b).
    (b) Conforming Amendments.--(1) Section 3703(a)(1)(B) of such title 
is amended by striking out ``and not restored as a result of the 
exclusion in section 3702(b) of this title''.
    (2) Section 3710(e)(2) of such title is amended by striking out the 
last sentence thereof.
    (3) Section 3712 of such title is amended--
            (A) in subsection (a), by striking out the last sentence of 
        paragraphs (4)(B) and (5)(B); and
            (B) in subsection (b)--
                    (i) by striking out ``(1)'' after ``(b)'' and 
                inserting in lieu thereof ``(b)''; and
                    (ii) by striking out paragraph (2).
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
applies with respect to loans guaranteed, insured, or made after 
September 30, 1996.
SEC. 15022. EXTENSIONS OF CERTAIN AUTHORITIES RELATING TO HOUSING 
              LOANS.

    (a) Loan Origination Fee.--Paragraph (4) of section 3729(a) of such 
title is amended by striking out ``October 1, 1998'' and inserting in 
lieu thereof ``October 1, 2000''.
    (b) Multiple Home Loan Fees.--Paragraph (5)(C) of such section is 
amended by striking out ``October 1, 1998'' and inserting in lieu 
thereof ``October 1, 2000''.
                  Subtitle D--Medical Program Reforms

SEC. 15031. MORE EFFICIENT MANAGEMENT AND DELIVERY OF VETERANS HEALTH 
              CARE.

    (a) Required Savings.--The Secretary of Veterans Affairs shall 
manage the medical care system of the Department of Veterans Affairs so 
as to achieve savings of $3,200,000,000 by the end of fiscal year 2000 
compared to the costs of that system through that fiscal year assumed 
in the Budget of the President for fiscal year 1995.
    (b) Prospective Payment System.--In order to achieve the savings 
required by subsection (a), the Secretary shall establish a system 
known as a Prospective Payment System for the allocation of resources 
for hospital care within the Department of Veterans Affairs. In 
establishing such a system, the Secretary shall consult with the 
Secretary of Health and Human Services and shall establish Diagnosis-
Related Groups (DRGs) to reflect the average cost of efficient care for 
different groups of patients.
    (c) Administrative Flexibility.--In order to implement the system 
required by subsection (b) and to achieve the savings required by 
subsection (a), the Secretary shall have discretion to control the 
nature and location of Department facilities, the total number of 
health care beds of the Department, and the total staffing level of 
health-related workers in the Department.

SEC. 15032. CLOSURE AND CONVERSION OF INEFFICIENT OR UNDERUSED 
              FACILITIES IN VETERANS' HOSPITALS.

    (a) In General.--In order to achieve greater efficiency in the 
operation of the Department of Veterans Affairs, the Secretary of 
Veterans Affairs shall reduce the number of surgical and other acute 
care facilities of the Department that have low rates of use or 
occupancy. The Secretary shall carry out the preceding sentence by 
closing small hospitals or underused units within hospitals or by 
converting such hospitals or underused units into facilities offering 
other services which are less costly and for which there is greater 
demand.
    (b) Criteria.--In considering a facility for closure or conversion 
under subsection (b), the Secretary shall take into consideration 
whether there are adequate alternative sources of care and whether the 
number of veterans using the facility is below average for Department 
of Veterans Affairs facilities.

SEC. 15033. REDUCTION IN EXPENDITURES FOR MAJOR CONSTRUCTION.

    (a) Limitation on Major Construction Projects.--During fiscal years 
1996 through 2000, the Secretary of Veterans Affairs may carry out a 
major construction project only in a geographic area that does not 
contain underutilized non-Department of Veterans Affairs facilities 
though which the Secretary could obtain by contract the health care 
capacity that would otherwise be obtained through the major 
construction project.
    (b) Cost Savings To Be Achieved.--In order to carry out subsection 
(a), the Secretary shall revise projected expenditures for major 
construction projects for the fiscal years covered by subsection (a) in 
order to reduce those projected expenditures by 10 percent.

              Subtitle E--Other Veterans Programs Reforms
SEC. 15041. ELIMINATION OF CERTAIN SUNSET DATES.

    The following provisions of law are repealed:
            (1) Section 8013(e) of the Omnibus Budget Reconciliation 
        Act of 1990 (38 U.S.C. 1710 note).
            (2) Section 5503(f)(7) of title 38, United States Code.

SEC. 15042. THIRD-PARTY REIMBURSEMENT.

    Section 1729(a)(2)(E) is amended by striking out ``October 1, 
1998'' and inserting in lieu thereof ``October 1, 1999''.
                  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.

    There is authorized to be appropriated for each of the fiscal years 
1996, 1997, 1998, 1999, and 2000, $9,517,139,750 to carry out the 
activities of the Department of Justice (including any bureau, office, 
board, division, commission, or subdivision thereof) which shall 
include the following sums authorized to be appropriated--
            (1) for General Administration, Salaries and Expenses: 
        $73,229,000;
            (2) for the Office of Inspector General: $30,500,000; which 
        shall include--
                    (A) not to exceed $10,000 to meet unforeseen 
                emergencies of a confidential character, to be expended 
                under the direction of the Attorney General, and to be 
                accounted for solely on the certificate of the Attorney 
                General; and
                    (B) funds for the acquisition, lease, maintenance 
                and operation of motor vehicles without regard to the 
                general purchase price limitation;
            (3) for the United States Parole Commission: $6,781,000;
            (4) for General Legal Activities: $407,234,000; which shall 
        include--
                    (A) not to exceed $20,000 for expenses necessary in 
                the collection of evidence, to be expended under the 
                direction of the Attorney General and accounted for 
                solely on the certificate of the Attorney General;
                    (B) funds for the rent of private or Government 
                owned space in the District of Columbia; and
                    (C) not to exceed $2,762,000 for the Office of 
                Legal Counsel:
        except that notwithstanding any other provision of law, not to 
        exceed $2,000,000 for expenses of the Department of Justice 
        associated with processing cases under the National Childhood 
        Vaccine Injury Act of 1986 shall be reimbursed from the Special 
        fund established to pay judgments awarded under the Act;
            (5) for the Antitrust Division: $67,658,750;
            (6) for the United States Attorneys: $817,757,000;
            (7) for the United States Marshals Service: $341,471,000; 
        which shall include--
                    (A) funds for the acquisition, lease, maintenance, 
                and operation of vehicles and aircraft; and
                    (B) funds for the purchase of passenger motor 
                vehicles for police-type use without regard to the 
                general purchase price limitation for the current 
                fiscal year:
        except that notwithstanding the provisions of section 3302 of 
        title 31, United States Code, for fiscal year 1992 and 
        hereafter the Director of the United States Marshals Service 
        may collect fees and expenses for the service authorized by 
        section 1921 of title 28, United States Code, and credit not to 
        exceed $1,000,000 of such fees to this appropriation to be used 
        for salaries and other expenses incurred in providing these 
        services;
            (8) For the Support of United States Prisoners in the 
        custody of the United States Marshals Service and as authorized 
        in section 4013 of title 18, United States Code, but not 
        including expenses otherwise provided for in appropriations 
        available to the Attorney General, $268,481,000, to remain 
        available until expended; of which not to exceed $15,000,000 
        shall be available under the Cooperative Agreement Program;
            (9) For Fees and Expenses of Witnesses: $78,000,000; which 
        shall remain available until expended; and which shall 
        include--
                    (A) funds for expenses, mileage, compensation, and 
                per diem of witnesses, for private counsel expenses, 
                and for per diem in lieu of subsistence, as authorized 
                by law, including advances; and
                    (B) not to exceed $2,000,000 for planning, 
                construction, renovation, maintenance, remodeling, and 
                repair of buildings and the purchase of equipment 
                incident thereto for protected witness safesites;
            (10) For the Community Relations Service: $20,379,000;
            (11) For the United States Trustee System Fund: 
        $100,216,000; to remain available until expended and to be 
        derived from the Fund, except that deposits to the Fund are 
        available in such amounts as may be necessary to pay refunds 
        due depositors;
            (12) For the Assets Forfeiture Fund: $439,000,000; to be 
        derived from the Fund, as may be necessary for the payment of 
        expenses as authorized by subparagraphs (A)(ii), (B), (C), (F), 
        and (G) of section 524(c)(1) of title 28, United States Code;
            (13) For Organized Crime Drug Enforcement: $500,000,000; 
        for expenses, not otherwise provided for, for the investigation 
        and prosecution of individuals involved in organized crime drug 
        trafficking, except that any amounts obligated from 
        appropriations under this heading may be used under authorities 
        available to the organizations reimbursed from this 
        appropriation;
            (14) For the Federal Bureau of Investigation: 
        $2,062,576,000; which shall include--
                    (A) funds for the purchase for police-type use of 
                passenger motor vehicles without regard to the general 
                purchase price limitation for the current fiscal year, 
                and for the hire of passenger motor vehicles;
                    (B) funds for the acquisition, lease, maintenance 
                and operation of aircraft;
                    (C) not to exceed $70,000 to meet unforeseen 
                emergencies of a confidential character to be expended 
                under the direction of the Attorney General and to be 
                accounted for solely on the certificate of the Attorney 
                General; and
                    (D) not to exceed $30,000 for official reception 
                and representation expenses;
            (15) For the Drug Enforcement Administration: 
        $1,000,000,000; which shall include--
                    (A) funds for the purchase for police-type use of 
                passenger motor vehicles, without regard to the general 
                purchase price limitation for the current fiscal year, 
                and for the hire of passenger motor vehicles;
                    (B) funds for the acquisition, lease, maintenance 
                and operation of aircraft;
                    (C) funds for conducting drug education programs, 
                including travel and related expenses for participants 
                in such programs and the distribution of items of token 
                value that promote the goals of such programs; and
                    (D) not to exceed $70,000 to meet unforeseen 
                emergencies of a confidential character to be expended 
                under the direction of the Attorney General and to be 
                accounted for solely on the certificate of the Attorney 
                General;
            (16) For the Immigration and Naturalization Service: 
        $1,056,826,000; which shall include--
                    (A) funds for the purchase for police-type use of 
                passenger motor vehicles, without regard
                 to the general purchase price limitation for the 
current fiscal year, and for the hire of passenger motor vehicles;
                    (B) funds for the acquisition, lease, maintenance 
                and operation of aircraft;
                    (C) funds for the purchase of uniforms without 
                regard to the general purchase price limitation for the 
                current fiscal year; and
                    (D) not to exceed $50,000 to meet unforeseen 
                emergencies of a confidential character to be expended 
                under the direction of the Attorney General and to be 
                accounted for solely on the certificate of the Attorney 
                General;
            (17) For the Federal Prison System: $2,246,031,000; 
        including $11,055,000 for the National Institute of Corrections 
        and $339,225,000 for buildings and facilities; and
            (18) The Federal Prison Industries, Incorporated is 
        authorized to make expenditures, within the limits of funds and 
        borrowing authority available, and in accord with the law, and 
        to make such contracts and commitments, without regard to 
        fiscal year limitations as provided by section 104 of the 
        Government Corporation Control Act as may be necessary in 
        carrying out the program set forth in the budget for the 
        current fiscal year for such corporation, including purchases 
        of and hire of passenger motor vehicles.
SEC. 16002. REDUCTION IN OVERHEAD EXPENSES OF DEPARTMENT OF JUSTICE.

    (a) In General.--The amount obligated by the Department of Justice 
during fiscal year 1996 for overhead expenses shall not exceed an 
amount sufficient to reduce outlays for such expenses during such 
fiscal year (as compared to such outlays during fiscal year 1995) by 
$401,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).

               CHAPTER 2--OTHER LAW ENFORCEMENT ENTITIES

SEC. 16011. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED STATES 
              CUSTOMS SERVICE.

    There is authorized to be appropriated for each of the fiscal years 
1996, 1997, 1998, 1999, and 2000, $1,360,665,000 for salaries and 
expenses of the United States Customs Service.

SEC. 16012. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED STATES 
              SECRET SERVICE.

    There is authorized to be appropriated for each of the fiscal years 
1996, 1997, 1998, 1999, and 2000, $461,992,000 for salaries and 
expenses of the United States Secret Service.

SEC. 16013. AUTHORIZATION OF APPROPRIATIONS FOR THE BUREAU OF ALCOHOL, 
              TOBACCO, AND FIREARMS.

    There is authorized to be appropriated for each of the fiscal years 
1996, 1997, 1998, 1999, and 2000, $188,000,000 for salaries and 
expenses of the Bureau of Alcohol, Tobacco, and Firearms.
SEC. 16014. AUTHORIZATION OF APPROPRIATIONS FOR DEFENDER SERVICES.

    There is authorized to be appropriated for each of the fiscal years 
1996, 1997, 1998, 1999, and 2000, $250,000,000 for defender services 
authorized under section 3006A of title 18 of the United States Code.

                   CHAPTER 3--ADMINISTRATIVE REFORMS

SEC. 16021. IMPROVEMENT OF U.S. MARSHALS SERVICE.

    (a) Phasing Out of Political Appointees.--
            (1) Unconfirmed appointees.--Any individual serving as a 
        United States marshal to whose appointment to such office the 
        Senate has not given its advice and consent as of the date of 
        the enactment of this Act, may no longer serve in such position 
        on or after such date of enactment, except pursuant to 
        appointment by the Attorney General under the amendments made 
        by this section. The Attorney General shall, before appointing 
        any other individual to such vacated position, offer such 
        vacated position to the individual then serving as deputy 
        marshal in that office of United States marshal. The individual 
        appointed to fill such vacated position shall be appointed for 
        the remainder of the unexpired term of his or her predecessor.
            (2) Confirmed appointees.--Any individual who, on the date 
        of the enactment of this Act, is a United States marshal to 
        whose appointment the Senate has given its advice and consent, 
        may not serve in such position on or after December 31, 1995, 
        except pursuant to appointment by the Attorney General under 
        the amendments made by this section. The Attorney General 
        shall, before appointing any other individual to such vacated 
        position, offer such vacated position to the individual then 
        serving as deputy marshal in that office of United States 
        marshal. The individual appointed to fill such vacated position 
        shall be appointed for the remainder of the unexpired term of 
        his or her predecessor.
    (b) Appointment of United States Marshals.--Section 561 of title 
28, United States Code, is amended--
            (1) in subsection (c) by striking ``The President shall 
        appoint, by and with the advice and consent of the Senate,'' 
        and inserting ``The Attorney General shall appoint''; and
            (2) in subsection (d) by striking ``President'' and 
        inserting ``Attorney General''.
    (c) Overall Reduction in Number of Positions.--
            (1) Elimination of positions of deputy marshal.--The 
        position of deputy marshal in the 70 judicial districts having 
        the least population of all judicial districts shall be 
        abolished, as of--
                    (A) the date of the enactment of this Act, in a 
                case in which subsection (a)(1) applies; or
                    (B) the date on which the United States marshal 
                leaves office under the first sentence of subsection 
                (a)(2), in a case in which such subsection applies;
        and no equivalent position in such districts shall thereafter 
        be created.
            (2) Overall reduction.--The number of full-time equivalent 
        positions in the United States Marshals Service as of January 
        1, 1996, may not exceed the number of full-time equivalent 
        positions in the United States Marshals Service on the date of 
        the enactment of this Act, minus 70.
    (d) Conforming Amendments.--(1) Section 562 of title 28, United 
States Code, and the item relating to such section in the table of 
sections at the beginning of chapter 37 of such title, are repealed.
    (2) Section 569 of such title is amended--
            (A) by striking ``(a)''; and
            (B) by striking subsection (b).

                       Subtitle B--Prison Reforms
SEC. 16201. PRIVATIZATION OF CORRECTIONAL INSTITUTIONS.

    (a) In General.--Chapter 301 of title 18, United States Code, is 
amended by adding at the end the following:
``Sec. 4014. Privatization of correctional institutions
    ``The Attorney General shall, not later than 5 years after the date 
of the enactment of this section and subject to the availability of 
sums appropriated for this purpose, contract with private persons for 
the imprisonment, subsistence, care, and proper employment of all 
persons held in Federal medium to maximum security mainstream prisons 
known as Federal correctional institutions under the authority of an 
enactment of Congress. The Attorney General shall phase in the 
contracts required under this section so that contracts cover 
approximately an additional 20 percent of prisoners in such 
institutions each of the 5 years beginning on the date of the enactment 
of this section.''
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 301 of title 18, United States Code, is amended by adding at 
the end the following new item:

``4014. Privatization of correctional institutions.''.
SEC. 16202. PAYMENT OF PUBLIC SAFETY OFFICERS.

    Section 1201(b) of the Omnibus Crime Control and Safe Streets Act 
of 1968 (42 U.S.C. 3796(b)) is amended--
            (1) in the first sentence by striking ``appropriations are 
        provided'' and inserting ``funds are available under the 
        Victims of Crime Act of 1984 (42 U.S.C. 10601 et seq.)''; and
            (2) in the second sentence by striking ``there are 
        authorized'' and all that follows and inserting ``the Attorney 
        General, acting through the Director of the Office of Victims 
        of Crime, shall assign a priority for payments to public safety 
        officers under the Victims's of Crime Fund and payment from 
        such fund to public safety officers shall be reduced by a 
        proportionate share to the extent that sufficient funds are not 
        available.

             Subtitle C--Justice Assistance Program Reforms

SEC. 16301. LEGAL SERVICES CORPORATION.

    The Legal Services Corporation Act is repealed, the Legal Services 
Corporation is terminated, and its officers and employees are 
terminated.

SEC. 16302. SURCHARGE ON DEBTS COLLECTED BY THE UNITED STATES.

    Section 3011(a) of title 28, United States Code, is amended by 
striking ``10 percent'' and inserting ``15 percent''.

SEC. 16303. TERMINATE BUREAU OF JUSTICE ASSISTANCE.

    (a) In General.--Part D of title I of the Omnibus Crime Control and 
Safe Streets Act of 1968 (42 U.S.C. 3741 et seq.) is repealed.
    (b) Bureau Phase Out.--The Attorney General may provide for the 
orderly phase out of the Bureau of Justice Assistance.

SEC. 16304. TERMINATE STATE JUSTICE INSTITUTE.

    (a) In General.--The State Justice Institute Act of 1984 (42 U.S.C. 
10701 et seq.) is repealed.
    (b) Institute Phase Out.-- The Attorney General may provide for the 
orderly phase out of the State Justice Institute.

          Subtitle D--Federal Bureau of Investigation Reforms
SEC. 16401. RESCISSION OF FUNDS FOR FBI FINGERPRINT LABORATORY IN WEST 
              VIRGINIA.

    Of the funds made available under the heading ``Federal Bureau of 
Investigation--Salaries and Expenses'' in chapter 2 of title II of 
Public Law 103-211, the unobligated balance on the date of the 
enactment of this Act is rescinded.

               Subtitle E--Other Justice Program Reforms

SEC. 16501. AUTHORIZATION OF APPROPRIATIONS FOR THE EQUAL EMPLOYMENT 
              OPPORTUNITY COMMISSION.

    Section 705 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-4) is 
amended by adding at the end the following:
    ``(l) There is authorized to be appropriated to carry out this 
title (excluding subsections (j) and (k) of this section) $230,000,000 
for each of the fiscal years 1996, 1997, 1998, 1999, and 2000.''.

SEC. 16502. HARBOR MAINTENANCE FEES.

    Section 9505(c) of the Internal Revenue Code of 1986 (26 U.S.C. 
9505(c)) is amended--
            (1) in paragraph (2) by striking ``and'' at the end;
            (2) in paragraph (3) by striking the period at the end and 
        inserting ``, and''; and
            (3) by adding at the end the following:
            ``(4) in addition to amounts made available under paragraph 
        (3), for payment of expenses incurred by the Department of the 
        Treasury, in fiscal years 1996 through 1999, to ensure that the 
        fees imposed under section 4461 are paid, but not in excess of 
        $5,000,000 for any such fiscal year.''.
                     TITLE XVII--GENERAL GOVERNMENT

                   Subtitle A--Administrative Reforms
SEC. 17001. REDUCTION IN OVERHEAD EXPENSES OF CERTAIN FOREIGN 
              OPERATIONS ACTIVITIES.

    (a) In General.--The aggregate amount obligated during fiscal year 
1996 for overhead expenses for activities for which funds are 
appropriated under the heading ``Funds Appropriated to the President'' 
in the Foreign Operations, Export Financing, and Related Programs 
Appropriations Act shall not exceed an amount sufficient to reduce 
outlays for such expenses during such fiscal year (as compared to such 
outlays during fiscal year 1995) by $461,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).

SEC. 17002. REDUCTION IN OVERHEAD EXPENSES OF DEPARTMENT OF THE 
              TREASURY.

    (a) In General.--The amount obligated by the Department of the 
Treasury during fiscal year 1996 for overhead expenses shall not exceed 
an amount sufficient to reduce outlays for such expenses during such 
fiscal year (as compared to such outlays during fiscal year 1995) by 
$209,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).

SEC. 17003. REDUCTION IN OVERHEAD EXPENSES OF OFFICE OF PERSONNEL 
              MANAGEMENT.

    (a) In General.--The amount obligated by the Office of Personnel 
Management during fiscal year 1996 for overhead expenses shall not 
exceed an amount sufficient to reduce outlays for such expenses during 
such fiscal year (as compared to such outlays during fiscal year 1995) 
by $12,000,000.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).
SEC. 17004. REDUCTION IN OVERHEAD EXPENSES OF OTHER INDEPENDENT 
              AGENCIES.

    (a) In General.--The aggregate amount obligated by the independent 
agencies of the Federal Government during fiscal year 1996 for overhead 
expenses shall not exceed an amount sufficient to reduce outlays for 
such expenses during such fiscal year (as compared to such outlays 
during fiscal year 1995) by $347,000,000. The Director of the Office of 
Management and Budget shall establish obligation limits for each such 
agency in order to carry out this section.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).
SEC. 17005. TERMINATION OF ADVISORY COMMISSION ON INTERGOVERNMENTAL 
              RELATIONS.

    (a) Repeal.--The Act entitled ``An Act to establish an Advisory 
Commission on Intergovernmental Relations'' (42 U.S.C. 4271 et seq.), 
approved September 24, 1959, which established the Advisory Commission 
on Intergovernmental Relations, is repealed.
    (b) Savings Provisions.--
            (1) Continuation of agreements, grants, contracts, 
        privileges, and other administrative actions.--All agreements, 
        grants, contracts, privileges, and other administrative 
        actions--
                    (A) which have been issued, made, granted, or 
                allowed to become effective by the Advisory Commission 
                on Intergovernmental Relations in the performance of 
                its functions or by a court of competent jurisdiction 
                with respect to those functions, and
                    (B) which are in effect on the date of the 
                enactment of this Act, or were final before that date 
                of enactment and are to become effective on or after 
                that date of enactment,
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with law by the President, any other authorized 
        official, a court of competent jurisdiction, or operation of 
        law.
            (2) Suits not affected.--The provisions of this section 
        shall not affect suits commenced before the date of the 
        enactment of this Act, and in all such suits, proceedings shall 
        be had, appeals taken, and judgments rendered in the same 
        manner and with the same effect as if this section had not been 
        enacted.
            (3) Suits involving council or office.--No suit, action, or 
        other proceeding commenced by or against the Advisory 
        Commission on Intergovernmental Relations, or by or against any 
        individual in the official capacity of such individual as an 
        officer or employee of such commission, shall abate by reason 
        of the enactment of this section.

SEC. 17006. ADMINISTRATIVE CONFERENCE OF THE UNITED STATES.

    Subchapter V of chapter 5 of title 5, United States Code, is 
repealed, the Administrative Conference of the United States is 
terminated, and the officers and employees of the Conference are 
terminated.

SEC. 17007. TERMINATION OF MISCELLANEOUS ADVISORY COMMITTEES.

    (a) Department of Agriculture.--
            (1) Swine health advisory committee.--Section 11 of the 
        Swine Health Protection Act (7 U.S.C. 3810), which required the 
        Secretary of Agriculture to appoint a swine health advisory 
        committee or committees, is repealed.
            (2) Cascade head scenic-research area advisory council.--
        Section 8 of the Act of December 22, 1974 (16 U.S.C. 541g), 
        which required the Secretary of Agriculture to establish a 
        Cascade Head Scenic-Research Area advisory council, is 
        repealed.
            (3) Global climate change technical advisory committee.--
        Section 2404 of the Food, Agriculture, Conservation, and Trade 
        Act of 1990 (7 U.S.C. 6703), which required the Secretary of 
        Agriculture to establish a technical advisory committee 
        concerning global climate change, is repealed.
            (4) Mono basin national forest scenic area advisory 
        board.--Section 306 of the California Wilderness Act of 1984 
        (16 U.S.C. 543e), which established the Mono Basin National 
        Forest Scenic Area Advisory Board, is repealed.
            (5) Nez perce national historic trail advisory council.--
        Section 5(d) of the National Trails System Act (16 U.S.C. 
        1244(d)), which required the Secretary of Agriculture to 
        appoint a Nez Perce National Historic Trail Advisory Council, 
        is amended in the first sentence by striking ``establishment.'' 
        the first place it appears, and by inserting before the period 
        at the end of the first sentence, as amended, the following: 
        ``and the Advisory Council established for the Nez Perce 
        National Historic Trail shall terminate on the effective date 
        of the Restructuring a Limited Government Act''.
    (b) Department of Defense.--Section 3306 of the National Defense 
Authorization Act for Fiscal Year 1993 (50 U.S.C. 98h-1 note), which 
authorized the Government-Industry Advisory Committee on the Operation 
and Modernization of the National Defense Stockpile, is repealed.
    (c) Department of Energy.--
            (1) Technical advisory committee on verification of fissile 
        material and nuclear warhead controls.--Section 3151(c) of the 
        National Defense Authorization Act for Fiscal Year 1991 (Public 
        Law 101-510; 104 Stat. 1839), which authorized the Technical 
        Advisory Committee on Verification of Fissile Material and 
        Nuclear Warhead Controls, is repealed.
            (2) Technical panel on magnetic fusion.--Section 7 of the 
        Magnetic Fusion Energy Engineering Act of 1980 (42 U.S.C. 
        9306), which authorized the Technical Panel on Magnetic Fusion, 
        is repealed.
    (d) Department of Health and Human Services.--
            (1) Advisory council on hazardous substances research and 
        training.--
                    (A) Repeal.--Section 311(a)(5) of the Comprehensive 
                Environmental Response, Compensation, and Liability Act 
                of 1980 (42 U.S.C. 9660(a)(5)), which authorized the 
                Advisory Council on Hazardous Substances Research and 
                Training, is repealed.
                    (B) Conforming amendment.--Section 2702(a) of title 
                10, United States Code, is amended in the first 
                sentence by striking ``and the advisory council 
                established under section 311(a)(5) of CERCLA''.
            (2) Advisory council on trauma care systems.--Section 
        601(b) of the Preventative Health Amendments of 1993 (107 Stat. 
        2238), which sought to terminate the Advisory Council on Trauma 
        Care Systems, is amended by striking ``Section 1201'' and 
        inserting ``Title XII''.
            (3) Job opportunities and basic skills training program 
        advisory panel.--Section 203(c)(4) of the Family Support Act of 
        1988 (42 U.S.C. 681 note), which authorized the Advisory Panel 
        for the Evaluation of the Job Opportunities and Basic Skills 
        Training (JOBS) Program, is repealed.
            (4) Board of tea experts.--
                    (A) Repeal.--Section 4 of the Tea Importation Act 
                (21 U.S.C. 42), which authorized the Board of Tea 
                Experts, is repealed.
                    (B) Conforming amendments.--Section 3 of the Tea 
                Importation Act (21 U.S.C. 43) is amended in the first 
                sentence by striking ``, upon the recommendation of the 
                said board,''.
            (5) Device good manufacturing advisory committee.--Section 
        520(f)(3) of the Federal Food, Drug, and Cosmetic Act (21 
        U.S.C. 360j(f)(3)), which authorized the Device Good 
        Manufacturing Practice Advisory Committee, is repealed.
            (6) End stage renal disease data advisory committee.--The 
        second sentence of section 1881(c)(7) of the Social Security 
        Act (42 U.S.C. 1395rr(c)(7)), which authorized the End-Stage 
        Renal Disease Data Advisory Committee, is amended by striking 
        everything after ``purpose of such'' and inserting ``registry 
        and shall determine the appropriate location of the 
        registry.''.
            (7) Federal hospital council.--Section 641 of the Public 
        Health Service Act (42 U.S.C. 291k), which authorized the 
        Federal Hospital Council, is repealed.
            (8) National arthritis and musculoskeletal and skin 
        diseases advisory board.--Section 442 of the Public Health 
        Service Act (42 U.S.C. 285d-7), which authorized the National 
        Arthritis and Musculoskeletal and Skin Diseases Advisory Board, 
        is repealed.
            (9) National commission on alcoholism and other alcohol-
        related problems.--Section 18 of the Comprehensive Alcohol 
        Abuse and Alcoholism Prevention, Treatment, and Rehabilitation 
        Act Amendments of 1979 (42 U.S.C. 4541 note), which established 
        the National Commission on Alcoholism and Other Alcohol-Related 
        Problems, is repealed.
            (10) National deafness and other communication disorders 
        advisory board.--Section 464D of the Public Health Service Act 
        (42 U.S.C. 285m-4), which authorized the National Deafness and 
        Other Communication Disorders Advisory Board, is repealed.
            (11) National diabetes advisory board, national digestive 
        diseases advisory board, and national kidney and urologic 
        diseases advisory board.--
                    (A) Repeal.--Section 430 of the Public Health 
                Service Act (42 U.S.C. 285c-4), which authorized the 
                National Diabetes Advisory Board, the National 
                Digestive Diseases Advisory Board, and the National 
                Kidney and Urologic Diseases Advisory Board, is 
                repealed.
                    (B) Conforming amendments.--Section 429(c) of the 
                Public Health Service Act (42 U.S.C. 485c-3(c)) is 
                amended--
                            (i) in paragraph (1) by adding ``and'' 
                        after the semicolon;
                            (ii) in paragraph (2) by striking ``and'' 
                        after the semicolon; and
                            (iii) by striking paragraph (3).
            (12) Task force on aging research.--Title III of the Home 
        Health Care and Alzheimer's Disease Amendments of 1990 (42 
        U.S.C. 242q through
         242q-5), which authorized the Task Force on Aging Research, is 
repealed.
    (e) Department of the Interior.--
            (1) Chattahoochee river national recreation area advisory 
        commission.--Section 106 of the Act entitled ``An Act to 
        authorize the establishment of the Chattahoochee River National 
        Recreation Area in the State of Georgia, and for other 
        purposes'' (16 U.S.C. 460ii-5), approved October 30, 1984, 
        which established the Chattahoochee River National Recreation 
        Area Advisory Commission, is repealed.
            (2) Gulf islands national seashore advisory commission.--
        Section 10 of the Act entitled ``An Act to provide for the 
        establishment of the Gulf Islands National Seashore, in the 
        States of Florida and Mississippi, for the recognition of 
        certain historic values at Fort San Carlos, Fort Redoubt, Fort 
        Barrancas, and Fort Pickens in Florida, and Fort Massachusetts 
        in Mississippi, and for other purposes'' (16 U.S.C. 459h-9), 
        approved January 8, 1971, which established the Gulf Islands 
        National Seashore Advisory Commission, is repealed.
            (3) Jefferson national expansion memorial commission.--
        Section 7 of the Act entitled ``An Act to provide for the 
        construction of the Jefferson National Expansion Memorial at 
        the site of Old Saint Louis, Missouri, in general accordance 
        with the plan approved by the United States Territorial 
        Expansion Memorial Commission, and for other purposes'' (16 
        U.S.C. 450jj-6), approved August 24, 1984, which established 
        the Jefferson National Expansion Memorial Commission, is 
        repealed.
            (4) Potomac heritage national scenic trail advisory 
        council.--The first sentence of section 5(d) of the National 
        Trails System Act (16 U.S.C. 1244(d)), as amended by subsection 
        (a)(5) of this Act, which authorized the Potomac Heritage 
        National Scenic Trail Advisory Council, is further amended by 
        striking ``The Secretary'' and inserting ``Except for the 
        Potomac Heritage National Scenic Trail, the Secretary''.
    (f) Department of Justice.--
            (1) Repeal.--Section 5002 of title 18, United States Code, 
        which created the Advisory Corrections Council, is repealed.
            (2) Conforming amendments.--Chapter 401 of title 18, United 
        States Code, is amended--
                    (A) by redesignating section 5003 as section 5002; 
                and
                    (B) in the table of sections at the beginning of 
                the chapter by striking the items related to sections 
                5002 and 5003 and inserting the following:

``5002. Custody of State offenders.''.
    (g) Department of Transportation.--
            (1) Commercial motor vehicle safety regulatory review 
        panel.--
                    (A) Repeal.--Section 31134 of title 49, United 
                States Code, which authorized the Commercial Motor 
                Vehicle Safety Regulatory Review Panel, is repealed.
                    (B) Clerical amendment.--The table of sections at 
                the beginning of chapter 311 of title 49, United States 
                Code, is amended by striking the item relating to 
                section 31134.
            (2) National driver register advisory committee.--Section 
        209 of the National Driver Register Act of 1982 (23 U.S.C. 401 
        note), which established the National Driver Register Advisory 
        Committee, is repealed.
            (3) National highway safety advisory committee.--Section 
        404 of title 23, United States Code, which established the 
        National Highway Safety Advisory Committee, is repealed.
    (h) Savings Provisions.--
            (1) Continuation of agreements, grants, contracts, 
        privileges, and other administrative actions.--All agreements, 
        grants, contracts, privileges, and other administrative 
        actions--
                    (A) which have been issued, made, granted, or 
                allowed to become effective by an entity terminated 
                pursuant to an amendment or repeal made by this 
                section, in the performance of its functions or by a 
                court of competent jurisdiction with respect to those 
                functions, and
                    (B) which are in effect on the date of the 
                enactment of this Act, or were final before that date 
                of enactment and are to become effective on or after 
                that date of enactment,
        shall continue in effect according to their terms until 
        modified, terminated, superseded, set aside, or revoked in 
        accordance with law by the President, any other authorized 
        official, a court of competent jurisdiction, or operation of 
        law.
            (2) Suits not affected.--The provisions of this section 
        shall not affect suits commenced before the date of the 
        enactment of this Act, and in all such suits, proceedings shall 
        be had, appeals taken, and judgments rendered in the same 
        manner and with the same effect as if this section had not been 
        enacted.
            (3) Suits involving council or office.--No suit, action, or 
        other proceeding commenced by or against an entity terminated 
        pursuant to an amendment or repeal made by this section, or by 
        or against any individual in the official capacity of such 
        individual as an officer or employee of such an entity, shall 
        abate by reason of the enactment of this section.

SEC. 17008. TERMINATION OF FEDERAL INFORMATION CENTERS.

    (a) Repeal.--Section 112 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 760), which authorized the 
establishment of a network of Federal information centers, is repealed.
    (b) Clerical Amendment.--The table of contents in the first section 
of the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 471 et seq.) is amended by striking the item relating to section 
112.
               Subtitle B--Legislative Branch Reductions
SEC. 17101. REDUCTION IN OVERHEAD EXPENSES OF EXECUTIVE OFFICE OF THE 
              PRESIDENT.

    (a) In General.--The amount obligated by each office in the 
Executive Office of the President during fiscal year 1996 for overhead 
expenses shall not exceed an amount sufficient to reduce outlays for 
such expenses during such fiscal year (as compared to such outlays 
during fiscal year 1995) by 25 percent.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).

SEC. 17102. FORMULA FOR DETERMINING OFFICIAL MAIL ALLOWANCE.

    (a) In General.--Section 311(e)(2)(B)(i) of the Legislative Branch 
Appropriations Act, 1991 (2 U.S.C. 59e(e)(2)(B)(i)) is amended by 
striking ``3'' and inserting ``1.5''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to sessions of Congress beginning with the first session 
of the One Hundred Fourth Congress.

SEC. 17103. TRANSFER OF CERTAIN FUNDS PROHIBITED.

    Section 101(c)(2) of the Legislative Branch Appropriations Act, 
1993 (2 U.S.C. 95b(c)(2)), is amended by striking ``Official Mail 
Costs'',''.

SEC. 17104. TEMPORARY SUSPENSION OF AUTOMATIC PAY ADJUSTMENTS FOR 
              MEMBERS OF CONGRESS.

    (a) In General.--Section 601(a) of the Legislative Reorganization 
Act of 1946 (2 U.S.C. 31) is amended by adding at the end the 
following:
    ``(3) No rate of pay shall be adjusted to reflect any adjustment 
which, but for this paragraph, would take effect under paragraph (2) on 
or after January 1, 1997, and before January 1, 2002.''.
    (b) Technical Amendment.--Paragraph (2)(A) of section 601(a) of 
such Act is amended by striking ``Subject to subparagraph (B),'' and 
inserting ``Subject to subparagraph (B) and paragraph (3),''.

                Subtitle C--Executive Branch Reductions
SEC. 17201. REDUCTION IN OVERHEAD EXPENSES OF EXECUTIVE OFFICE OF THE 
              PRESIDENT.

    (a) In General.--The amount obligated by each office in the 
Executive Office of the President during fiscal year 1996 for overhead 
expenses shall not exceed an amount sufficient to reduce outlays for 
such expenses during such fiscal year (as compared to such outlays 
during fiscal year 1995) by 25 percent.
    (b) Overhead Expenses.--For purposes of this section, the term 
``overhead expenses'' means expenses within the following object 
classifications established by the Director of the Office of Management 
and Budget:
            (1) 21.0 (travel and transportation of persons).
            (2) 22.0 (transportation of things).
            (3) 23.1 (rental payments to GSA).
            (4) 23.3 (communications, utilities, and miscellaneous 
        charges).
            (5) 24.0 (printing and reproduction).
            (6) 25.1 (consulting services).
            (7) 25.2 (other services).
            (8) 25.5 (research and development contracts).
            (9) 26.0 (supplies and materials).
            (10) 31 (equipment).
SEC. 17202. SES ANNUAL LEAVE ACCUMULATION.

    (a) Repeal.--
            (1) In general.--Section 6304(f) of title 5, United States 
        Code, is repealed, effective as of the last day of the last 
        applicable pay period beginning in the calendar year in which 
        this Act is enacted.
            (2) Conforming amendment.--Section 6304(a) of title 5, 
        United States Code, is amended by striking ``(e), (f), and 
        (g)'' and inserting ``(e) and (g)'', effective as of the date 
        on which the amendment made by paragraph (1) takes effect.
    (b) Savings Provision.--Annual leave in excess of the amount 
allowable under subsection (a) or (b) of section 6304 of title 5, 
United States Code, which was accumulated under section 6304(f) of such 
title by an employee who becomes subject to such subsection (a) or (b) 
as a result of this section shall remain to the credit of the employee 
and be subject to reduction in the same manner as provided in section 
6304(c) of such title.
SEC. 17203. LIMITATION RELATING TO POLITICAL APPOINTEES.

    (a) In General.--The average total number of political appointees 
in the executive branch during 1997, and each subsequent calendar year, 
may not exceed 2,000 (determined on a full-time equivalent basis).
    (b) Basis for Determining Compliance.--For purposes of applying the 
limitation under subsection (a), the average total number of political 
appointees in the executive branch during any calendar year shall be 
determined on the basis of the numbers of such appointees, as set forth 
in the budget for the United States Government submitted by the 
President to the Congress for the first fiscal year beginning after 
such calendar year.
    (c) Restriction.--Nothing in this section shall be considered to 
permit or require--
            (1) the termination of an individual's appointment to a 
        position established by law; or
            (2) that any position referred to in paragraph (1) remain 
        unfilled.
    (d) Definitions.--For purposes of this section--
            (1) the term ``political appointee in the executive 
        branch'' means a political appointee serving in or under an 
        Executive agency;
            (2) the term ``political appointee'' means--
                    (A) an employee whose appointment is made by and 
                with the advice and consent of the Senate;
                    (B) an employee whose position is excepted from the 
                competitive service by reason of its confidential, 
                policy-determining, policy-making, or policy-advocating 
                character; and
                    (C) a noncareer appointee in the Senior Executive 
                Service (as defined in section 3132(b)(7) of title 5, 
                United States Code) or in any other senior executive 
                service;
            (3) the term ``employee'' has the meaning given such term 
        by section 2105 of title 5, United States Code;
            (4) the term ``competitive service'' has the meaning given 
        such term by section 2102 of title 5, United States Code; and
            (5) the term ``Executive agency'' has the meaning given 
        such term in section 105 of title 5, United States Code, but 
        does not include the General Accounting Office.

                  Subtitle D--Specific Program Reforms

SEC. 17301. DECREASE IN PRESIDENTIAL ELECTION CAMPAIGN FUND CHECK-OFF.

    (a) In General.--Section 6096(a) of the Internal Revenue Code of 
1986 (relating to designation by individuals) is amended--
            (1) by striking ``$3'' each place it appears and inserting 
        ``$1'', and
            (2) by striking ``$6'' and inserting ``$2''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to tax returns required to be filed after December 
31, 1995.

SEC. 17302. MORATORIUM ON CONSTRUCTION AND ACQUISITION OF NEW FEDERAL 
              BUILDINGS.

    (a) General Rule.--After the date of the enactment of this Act and 
before October 1, 1998, the Administrator of General Services may not 
obligate any funds for construction or acquisition of any public 
building under the authority of the Public Buildings Act of 1959 or any 
other provision of law (other than a public building under construction 
or under contract for acquisition on such date of enactment).
    (b) Public Building Defined.--In this section, the term ``public 
building'' has the meaning such term has under the Public Buildings Act 
of 1959.

SEC. 17303. TERMINATION OF ANNUAL DIRECT ASSISTANCE TO NORTHERN MARIANA 
              ISLANDS.

    (a) In General.--No annual payment may be made under section 701, 
702, or 704 of the Covenant to Establish a Commonwealth of the Northern 
Mariana Islands in Political Union with the United States of America 
(48 U.S.C. 1681 note), for any fiscal year beginning after September 
30, 1995.
    (b) Elimination of 7-Year Extensions.--
            (1) In general.--The Act of March 24, 1976 (90 Stat. 263; 
        16 U.S.C. 1681 note) is amended by striking sections 3 and 4.
            (2) Conforming changes.--Section 5 of the Act of March 24, 
        1976 (90 Stat. 263; 16 U.S.C. 1681 note) is amended--
                    (A) by redesignating the section as section 3;
                    (B) by striking ``agreement identified in section 3 
                of this Act'' and inserting ``Agreement of the Special 
                Representatives on Future United States Financial 
                Assistance for the Government of the Northern Mariana 
                Islands, executed June 10, 1985, between the special 
                representative of the President of the United States 
                and the special representatives of the Governor of the 
                Northern Mariana Islands''; and
                    (C) by striking ``Interior and Insular Affairs'' 
                and inserting ``Resources''.

SEC. 17304. GOVERNMENT INFORMATION DISSEMINATION AND PRINTING 
              IMPROVEMENT.

    (a) Transfer of Functions.--
            (1) Public printer.--The position of Public Printer and all 
        functions of the position of Public Printer (other than 
        functions of the Superintendent of Documents) under title 44, 
        United States Code, or any other provision of law are 
        transferred from the legislative branch of the Government to 
        the executive branch of the Government.
            (2) Superintendent of documents.--The position of 
        Superintendent of Documents and all functions of the position 
        of Superintendent of Documents under title 44, United States 
        Code, or any other provision of law are transferred to the 
        Library of Congress and shall be carried out by the 
        Superintendent of Documents under the direction of the 
        Librarian of Congress. The Superintendent of Documents shall be 
        appointed by, and serve at the pleasure of, the Librarian of 
        Congress.
            (3) Revocation of charters.--All printing plant charters 
        authorized under section 501 of title 44, United States Code, 
        are revoked.
            (4) Effective date.--The transfer under paragraph (1) and 
        the revocation under paragraph (3) shall each take effect 2 
        years after the date of the enactment of this Act. The transfer 
        under paragraph (2) shall take effect one year after the date 
        of the enactment of this Act.
    (b) Government Publications To Be Available Throughout the 
Government.--All Government publications shall be available throughout 
the Government to any department, agency, or entity of the Government 
for use or redissemination.
    (c) Inventory and Furnishing of Government Publications.--Each 
department, agency, and other entity of the Government shall--
            (1) establish and maintain a comprehensive inventory of its 
        Government publications;
            (2) make such inventory available through the electronic 
        directory under chapter 41 of title 44, United States Code; and
            (3) in the form and manner prescribed by the Superintendent 
        of Documents, furnish its Government publications to the 
        Superintendent of Documents.
    (d) Additional Responsibilities of the Public Printer.--
            (1) In general.--The Public Printer shall, with respect to 
        the executive branch of the Government and the judicial branch 
        of the Government--
                    (A) use all necessary measures to remedy neglect, 
                delay, duplication, and waste in the public printing 
                and binding of Government publications, including the 
                reduction and elimination of internal printing and 
                high-speed duplicating capacities of departments, 
                agencies, and entities;
                    (B) prescribe Government publishing standards, 
                which, to the greatest extent practicable, shall be 
                consistent with the United States Government Printing 
                Office Style Manual;
                    (C) prescribe Government procurement and 
                manufacturing requirements for printing paper and 
                writing paper, which, to the greatest extent 
                practicable, shall be consistent with Government Paper 
                Specification Standards;
                    (D) authorize the acquisition and transfer of 
                equipment requisitioned by publishing facilities 
                authorized under section 501 of title 44, United States 
                Code;
                    (E) authorize the disposal of such equipment 
                pursuant to section 312 of title 44, United States 
                Code; and
                    (F) establish policy for the acquisition of 
                printing, which, to the greatest extent practicable, 
                shall be consistent with (i) Printing Procurement 
                Regulation (GPO Publication 305.3), (ii) Government 
                Printing and Binding Regulations (JCP No. 26), and (ii) 
                Printing Procurement Department Instruction (PP304.1B).
            (2) Policy standards.--The policy referred to in paragraph 
        (1)(F) shall be formulated to maximize competitive procurement 
        from the private sector. Government in-house printing and 
        duplicating operations authorized under section 501 of title 
        44, United States Code, or otherwise authorized by law, may be 
        used if they provide printing at the lowest cost to the 
        Government, taking into consideration the total expense of 
        production, materials, labor, equipment, and general and 
        administrative expense, including all levels of overhead.
    (e) Additional Responsibilities of the Superintendent of 
Documents.--
            (1) Government publications to be furnished to the 
        superintendent of documents.--If a department, agency, or other 
        entity of the Government publishes a Government publication, 
        the head of the department, agency, or entity shall furnish the 
        Government publication to the Superintendent of Documents not 
        later than the date of release of the material to the public.
            (2) Dissemination or republication.--In addition to any 
        other dissemination provided for by law, the Superintendent of 
        Documents shall disseminate or republish Government 
        publications, if, as determined by the Superintendent, the 
        dissemination by the department, agency, or entity of the 
        Government is inadequate. The Superintendent shall have 
        authority to carry out the preceding sentence by appropriate 
        means, including the dissemination and republication of 
        Government publications furnished under paragraph (1), with the 
        cost of dissemination and republication to be borne by the 
        department, agency, or entity involved.
            (3) Cost.--The cost charged to the public by the 
        superintendent of documents under paragraph (2) for any 
        government publication (whether such government publication is 
        made available to the public by a department, agency, or entity 
        of the government, or by the superintendent of documents) may 
        include the incremental cost of dissemination, but may not 
        include any profit.
    (f) Depository Libraries.--In addition to any other distribution 
provided for by law, the Superintendent of Documents shall make 
Government publications available to designated depository libraries 
and State libraries. The Superintendent shall have authority to carry 
out the preceding sentence by appropriate means, including the 
dissemination and republication of Government publications furnished 
under subsection (e)(1), with the cost of dissemination and 
republication to be borne by the department, agency, or entity 
involved.
    (g) Definitions.--As used in this section--
            (1) the term ``Government publication'' means any 
        informational matter that is published at Government expense, 
        or as required by law; and
            (2) the term ``publish'' means, with respect to 
        informational matter, make available for dissemination.

SEC. 17305. REPEAL OF TRANSITIONAL APPROPRIATIONS AUTHORIZATION FOR THE 
              POST OFFICE

    (a) In General.--Section 2004 of title 39, United States Code, is 
repealed.
    (b) Conforming Amendment.--Section 2003(e)(2) of such title is 
amended by striking out ``sections 2401 and 2004'' both places it 
appears and inserting in lieu thereof ``section 2401''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 12 of such title is amended by striking out the item relating 
to section 2004.
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